shery: good morning and welcome to daybreak australia. we are counting down to ages major market opens. saudi arabia makes a bold move to stabilize oil markets unveiling an extra million barrels a day cut to output. a major defense forum in singapore ends with few signs of optimism over u.s. china tensions and top defense officials clashing over issues including taiwan. as the fed approaches a possible pause in hikes traders brace for two" decisions from the rba and bank of canada. u.s. futures coming online needed in the early asian session but this after u.s. stocks rallied to nearly able market with the s&p 500 extending the gains in surge from the october load to nearly 20%. the vicks fear gauge retreated dropping below the 15 level

toward the lowest level since 2020. we had the continued rally in tech. small caps including regional banks gaining ground. you can see the 10 year yield close to the 370 level. this all reaction to president biden signing legislation averting a u.s. debt default. not to mention we got a mixed jobs report. take a look at how crude prices are coming online. upside of almost 3%. this after we heard from saudi arabia that they will make the additional cut in oil production and do whatever it takes to bring stability to the oil markets. let's bring in su keenan for more on opec. interesting the saudi arabia taking the burden while the rest of the group did nothing. >> that alone is a surprise and the wording the saudi's will do whatever it takes is what is pushing oil higher. it is all about protecting the

price of oil, the take away from the opec meeting is saudi arabia is doubling down after the previous cuts which cut the market by surprise two months ago failed to deliver a sustained price rally. we have saudi arabia reducing output by an additional 21 million barrels a day -- additional one million barrels a day in july. the saudi's to cede important ground to two important allies cared russia which made no commitment to cut output deeper and the uae which one the right to produce more in 2024. the group gathered in vienna at a time when oil prices have been hammered by a number of factors including the softer economic output. that is especially so in china. saudi arabia says it is going to do whatever is necessary. it means it is taking on the burden of the deeper output cuts

. the rest of the cartel offered no additional action but did pledge to keep their existing cuts until the end of 2024. we can take a look at how oil prices have fared year to date almost down in double digits. it is a big change from a year ago when the russian invasion of ukraine pushed prices well above 100. next month's additional cut could be extended but the saudi energy minister said he is going to keep the market and a about whether that happens. one analyst says the near term price is dependent on the test of wills between stability seeking saudi arabia and parish paper traders. you might remember may 23 the saudi's put out a warning to the speculators saying you are going to feel pain if you are short this market. trading data shows bearish speculators have reined in the bearish bets. shery: the latest on oil.

disappointing data from china and not a great demand picture. we have more clues about the chinese economy this week with trade, inflation and credit data . we have a bloomberg's group officials are preparing new support measures for the property market. annabelle joins us with more details. what exactly is being considered and why now? >> i think probably why now is easier because you are referencing some of the economic issues we have seen out of china. the recovery or rebound from post-covid life has not materialized any the way a lot of us had been expecting. the second part, china has put out some property measures to try to support the market but so far they have not worked that well because we have seen signs of renewed weakness emerging in the property market. we saw a rebound in home sales slowing in may to 6.7%.

that was more than 29% in the previous two months. it is starting to peter out. any terms of what that has meant for equity markets it has been a major drag. the hsc i index which is the china facing a-shares gauge in hong kong. now into a bear market. will be monitoring the offshore you want past the seven mark. officials have been paying close attention to this. now we are told by sources -- exclusive reporting from bloomberg a new batch of measures could be considered. down payments for some properties in top cities could be reduced. that is a major measure we are hearing. we did have the 16 point property plan put out in november last year. that could see some amendments. shery: the property sector such a key part of the chinese economy. no wonder we had the huge market reaction to these potential new measures. >> when you look at the timeline

of this announcement when it came out -- first we had the speculation and that alone lifted the bloomberg index of china property developers. we had a 6% rally in the session friday. and we got the official bloomberg reporting coming out after the market close. that lifted -- we had seen a european stocks lighting. it has been an area where investors were looking as a key market that would benefit from china's recovery. jury goods makers, the mining sector, also high. something that lifted u.s. equities and we saw u.s. futures rising on friday. certainly something that has ramifications not just for the asian region, a lot of these economies are dependent on what happens in china but around the world. shery: annabelle joining us with the latest on china. let's get over to vonnie quinn. vonnie: india says a faulty electronic signaling system was the caused of its worst real

disaster any three decades. the railways ministry says an investigation into the three train collision continues adding the current focus is restoring services. the search for survivors has ended. the state government says to hundred 75 people were killed with more than 800 injured. president biden has signed legislation averting a u.s. debt default avoiding a catastrophic blow to the economy with a bipartisan victory. with the deal done the u.s. treasury is such unleash a new wave of bond sales. the surge could drain liquidity from the banking sector raising short-term funding rates and tightening the screws on an economy many economists see headed for a recession. bloomberg has been told cia director william burns made a secret visit to beijing last month where he met with chinese intelligence officials. a u.s. official says the spy chief emphasize the importance of maintaining open lines of communication between beijing and washington. but in the administration is trying to reset lateral ties but

a source says the trip was merely about intelligence and not diplomacy. north korea says giving advance notice of its satellite watches is no longer necessary. as follows international quitters is in of last week's failed attempt to put a spy satellite in orbit. kim jong-un sisters says pyongyang's military highs and settle is no different from the thousands put into orbit by other nations and a legitimate act of self-defense. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn and this is bloomberg. shery: coming up, economists and money market split over which way australia's central bank will move on tuesday. we will preview the upcoming policy decision later this hour. first, boko capital partners tells us why they believe u.s. economy is already seeing a soft landing. this is bloomberg. ♪

>> i don't think the report is as buoyant as the payrolls number suggest. >> complicates the fed's policy challenge. >> there are signs underneath the top numbers that might suggest the measures it is taking is working. >> we are going to see more volatility and dispersion

intra-a lot of these markets. >> you continue to have positive reaction to the fact rings are not as bad as the market expected going back to the beginning of the year. >> the fed has plenty of reasons to keep hiking rates because the data continues to be so resilient. >> our best guess is you will continue to see more evidence growth and inflation are moderating and the fed will probably be done for the cycle if they skip in june. >> thinking one month of data is going to make a huge difference is i think fooling yourself. >> are guests on bloomberg tv reacting to the u.s. may jobs report. this gtv chart on the bloomberg showing you the strength of the payroll numbers beating expectations again for the month of may. 14 consecutive months when they have beat and we are expecting traders pricing in we might see

two rate hikes not necessarily starting this month but that is the expectations in the next meetings given the strength of the nonfarm payrolls numbers. it is not necessarily a clean picture. the unemployment rate rising seen the biggest monthly gain since 2020. the household survey painting a picture of a weaker labor market . our next guest says the u.s. jobs data was messy but she still believes the economy is already making a soft landing. let's discuss with the founder and chief investment officer at boko capital partners. always good to see you. there seems to have been a narrative for everyone here. >> absolutely. the video you played at the beginning really amplifies that because some people are seeing the fed is going to have to continue to raise and some say we are already there. they're going to cut at some

point. the data was extremely messy on friday. that reflects a lot of changes that are happening everyday in the market. i love seeing data like this because it makes you think the first thing because i think we are in a soft landing, if you over the last couple weeks we've been hearing from retailers and retailers regardless of who they serve, the high come of low, the medium consumer, they are all saying it was a soft quarter and they are expecting softness to go on. that would say the consumer feels like the products they are selling are not worth buying. there are many reasons for that but secondly, wage growth has slowed down so maybe we are having -- i would not call it a recession. maybe i don't know, a soft landing, a slowdown. shery: for an investor like

yourself, how much of a difference does it make it whether the fed hikes of this month or in the following meeting? will the payrolls number make a difference and when you are thinking about your portfolio allocations, does that matter? >> it does not matter to the portfolio allocations and we will get to that but i think we'll need to think about what the fed is going to do and more importantly what their peak price or peak interest rate is. that determines what we discount our cash flows back and that determines what the companies are worth. i think the fed has even said they are probably closer to done then not. i think analysts like myself can determine five-ish, six-ish percent, that is what we need to discount the cash flows back so looking forward, what are those companies worth? we are running a second or neutral kind of strategy and

that means our picks line up the second your weightings of the -- the sector weightings of the s&p 500. we are not taking huge growth or huge speculative bets on companies. shery: do you worry now we have a debt ceiling deal what might happen to the day lucia of treasury notes we are getting? is that a risk for you? >> not really. we are not super exposed to that should something we are concerned with and i don't know your ex u.s. viewers will comprehend this but we have had a moratorium on student loans because most of the student loans are adjudicated or run by the government. there are 48 million people with outstanding loans and that is $1.7 trillion over some number of years has to be paid back.

and i think the fed knows this too which is why i think they are done. they do not want to raise interest rates to high because this is going to be another slowing effect on the economy. shery: does that mean the consumption side of things gets hit? >> i think so and i think you are seeing this in the jobs data. i think people who had the second job to pay for their student loans in 2019 -- i think they are out there looking for work and that is why you so unemployment go up. we have not seen continuing claims -- the number of people actively drawing on unemployment -- we have not seen that number rise. i think people are lining up that job that is going to pay for their student loans if they are unemployed right now. shery: can we have a few rate decisions across the world including several in emerging

markets. do you play the rate divergence or the trend divergence at this point and international markets? on the side of asia, there is a lot of optimism about what might happen in china and japan because they are going the other way. >> right. i think it is an important thing to keep in mind because most of the companies -- i am u.s.-based and i only select u.s. companies that trade on our exchange but we do have a lot of large companies that have operations around the world. japan is very interesting because they seem to have gone away from their long time zero interest rate policy. as you said they might cutting and it looks like china might be cutting too. china more than japan might force the u.s. not to raise any more or maybe even to cut because we have to have our

currency more or less in line with where it floats now and that is something the fed pays attention to. when large areas like china are reducing their interest rates everybody else has to pay attention. shery: do you play some of the china names with some of the u.s. names that may be exposed to the economy? >> no, not directly. we only do u.s. companies. i know some of them trade on the u.s. exchanges. shery: what about those that get revenue from china, from some exposure to the economy because now we hear asian policymakers may be opening because of monetary stimulus or at least that is the investor help now. >> names like amd you probably play in china as well. we have companies with global reach and who have -- who are

concentrated because of the size and growth in china. that is how we play that game. shery: do you play oil? that sector, lots of people have said there are lots of opportunities. at the same time we are seeing this hesitancy when it comes to oil demand outlook not to mention what opec plus is doing. >> right. i have to tell you i think a lot of the strategies around energy markets are best left to people that solely focus on that. although we do have exposure to energy for sure because it is in that sector neutral kind of -- we have to have -- it is a sector in the s&p 500 so we have to have exposure. we do own a very large, integrated and global company, exxon. we are happy with that name. they have been a good performer

since 2020. we think they are still going to perform well. shery: always good to have you with us. found her and cio at boca capital partners. we were talking about the several central bank decisions coming up this week. though to some of the events you need to watch in the week ahead. that includes the rba decision expected to hold rates on tuesday in the span of 13 months it has lifted rates by 375 basis points including may surprised 25 basis points hike. we will get rate decisions from the rbi and bank of canada. on friday china's may consumer inflation numbers are likely to reflect weakness in the economic recovery. will watch for cpi prints coming from indonesia and the philippines. china's producer price index also expected to fall with lower commodity prices likely weighing

on the measure. other economic data to note, china's may trade figures and the services and composite number will see first quarter gdp figures from australia and japan. australia's april trade balance. that is your week ahead. you can get a roundup up of all these stories in today's edition of daybreak. terminal subscribers go to dayb . you can customize your settings so you only get the news on the industries and assets you care about. this is bloomberg. ♪

shery: we are watching geopolitical tensions and all of the developments along the shangri-la dialogue, asia's largest security forum just wrapped up. it seems the highlight of the

u.s. china relationship in that meeting was a shaking of hands between the u.s. defense chief and his chinese counterpart because after that it was all about recrimination against each other and china's defense mr. using speech -- defense minister using a speech in singapore to attack the u.s. strategy toward the indo pacific saying washington is seeking to stoke confrontation through its support for tire one. it did not help that we had a chinese vessel harassing an american warship transiting the taiwan strait and that drawing attention to the biggest potential military flashpoint between the two powers. this is what the chinese defense minister was saying. we will never hesitate to defend are legitimate rights and interests let alone sacrificing the nation's core interests. paul: it was not a great weekend for the security arrangements in the south china sea. it does put smaller countries in

difficult position when these two heavyweights are at such odds. it is not just those that have a claim to the south china sea. nobody wants to see a ukraine type situation emerging around taiwan. just take australia. it is a member of the all caps alliance. it is a member of the quad and is trying to rebuild ties with china. a difficult position for the australian defense minister. let's hear what he had to say. >> we can be an ally of the united states and we can build a productive relationship with china. we firmly believe that is possible. at is the line we seek to pursue. paul: china warning also groups like the quad and australia as i mentioned a member of both destabilizes and divides china. china not very happy with these alliances in the region. shery: we have seen secretary

austin departing singapore headed for india. those alliances and the divergence of all of these countries when it comes to these geopolitical tensions around the u.s., around china, around taiwan and where they stand in the months ahead, a key issue. paul: just a one note of optimism besides the handshake, finishing his remarks saying the world is big enough for countries including china and the u.s. to grow together. perhaps a tiny glimmer of optimism. still to come we will talk a little more about no sign of a thaw between u.s. china relations at the shingle dialogue. an analysi we moved out of the city so our little sophie could appreciate nature. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes) (chainsaw continues) (daughter screams) let's pretend for a second that you

didn't let down your entire family. what would that reality look like? well i guess i would've gotten us xfinity... and we'd have a better view. do you need mulch? what, we have a ton of mulch.

paul: saudi arabia will make an

extra one million barrel a day oil supply cut in july taking its production to the lowest level in several years. more from vienna. >> victory for the art of negotiation today in vienna. two days of diplomacy. a one million barrel a day unilateral cut. the battle lines are drawn with the mark. an open-ended contract to do more. the winners, the ember audis. they got a new target. $200, barrels a day -- to hundred thousand barrels a day extra. it was a review of some of the african producers. that will come later in the year. the real victor, the one that got away quite literally pitted the russians. they were smiling. they said we have cut by 500,000 barrels and we continue to do so through 2024.

there was no review of their target. perhaps it is alexander novak who got away. the battle lines are drawn. let's see whether the speculators -- shery: manus cranny us from vienna as we continue to see oil prices gained ground. let's get to the first word news with vonnie quinn. vonnie: pakistan's former prime minister says the military establishment wants to stop his party from winning the next election. he cites the arrest of his supporters as evidence of generals being against him. he accuses the current government of venting to the military's wishes to stay in power. >> the government is just a puppet government. they really -- a government that is latching onto the establishment because they know if there are elections they will be wiped out. vonnie: there's israeli prime

minister is accusing iran of lying to the international atomic energy agency. this comes after the un's nuclear watchdog closed to investigations into and iran's nuclear enrichment program after iran agreed to the reinstallation of cameras. netanyahu called the decision a stain on the agency's conduct. polls have taken to the streets of warsaw to show their support for the opposition could hundreds of thousands joined the march which was convened by the former european council president. the demonstration folds on the 34th anniversary of poland's first partially free elections. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. paul: australia's defense minister says allies of the united states can have a productive relationship with china. he made the comments while in

singapore for the shangri-la dialogue defense summit. he spoke with haslinda hohman and she began by asking him about the chinese vessel -- u.s. fizzle. >> we want to see more dialogue matters which is why the shingle law dialogue has been so enduring over the course of its history. but i would say that the common waters, international waters come international airspace are there for everyone. the united states is operating with accordance to its rights within those waters. it is important that those be maintained as open waters because it is important to global rules-based order be maintained in this region. certainly from an australian perspective when we think about where our interest lies, our interest lies in the rules of the road and that means freedom of navigation and freedom of overflight. it means in places like the

south china sea when most of our trade -- where most of our trade transits. the need for the rules to be applied to every country. >> we heard from the prime minister urging countries in the region to avoid getting caught between the u.s. and china. until recently one would be forgiven for thinking australia is from the other side of the u.s. strategically. it is australia trying to get to the middle? >> we have an alliance with the united states which has been in place really since the end of the second world war and formerly since the 1950's. it is central to our national security and it is central to our worldview. none of that changes. we are a country of the region in our largest trading partners china. we value a productive relationship with china. we seek to deal with china on

its on terms. it is complex, that relationship because they are security anxieties we have in respect of china. we are seeing a significant buildup of its military. that is happening without a sense of strategic reassurance to us but to the region and the world about its purpose. we have our issues. we do have a significant economic relationship with china and we want to manage that as well. ultimately this is the reason why dialogue matters. how you navigate those two things is complex. it is not obvious. it requires discussion. >> the question is whether or not australia can be seen as a neutral party when defense ministers before you have said it is inconceivable australia will not defend taiwan should china attack it. >> in terms of taiwan, our position is we do not want to

see any change to the status quote across the taiwan strait. that is our very firm position. that is in the context of having a long-standing one china policy which has been the bipartisan policy in australian politics going back to the mid-1970's. that is where we stand in relation to taiwan. and that issue. we can be an ally of the united states and we can build a productive relationship with china. we firmly believe that is possible. and that is the line we seek to pursue. paul: australian defense ministers speaking to bloomberg on the sidelines of the shangri-la dialogue. the highly anticipated defense forum in singapore kicked off with a handshake between pentagon chief lloyd austin and his chinese counterpart. that turned out to be the high point. there was no sign of any real

thaw. for more on this let's bring in the eurasia group research fellow from washington. thanks so much for joining us. aside from the handshake, can you recall there ever being a lower ab in u.s. china relations? >> thank you for having me. i think this is almost an improvement on where we were in august of last year when nancy pelosi visited taiwan. there is a lot happening behind the scenes obviously behind the handshake. the chinese defense minister has been sanctioned by the united states since 2018. the handshake reflects china's unwillingness to talk to the united states when one of the high-ranking officials is still being sanctioned. paul: we did have a number of incidents in the south china sea

over the past few days and weeks but notably over the weekend the close paths between a chinese warship. how great is the risk of escalation and there are -- and are there adequate guard rails in place? >> it is notable it was not just the united states there was a canadian ship transiting with united states. i do not think this is the first time this has happened and when you look at what you might call some airborne shenanigans that have been going on for some years, these type of close passes by chinese military aircraft and vessels have been part of the ongoing tensions in the region. in terms of guard rails, i think more dialogue between high-ranking defense officials is vital. we heard this from some of the

defense ministers particularly the singaporean defense minister who said more communication needs to be part of a solution to the tensions in the region. beyond more communication it is hard to imagine how things like this can be resolved quickly or prevent them from escalating into more intense situations. shery: you said there was a lot happening behind the scenes. we have heard the cia director went to beijing last month. no about the climate cooperations. i do wonder how much does this help and is this enough when you have areas of high tensions like the taiwan strait? >> this is not enough certainly. this is the beginning of a thaw. it is not just the cia jake sullivan national security advisor met with his chinese counterpart in valiant -- in

vienna some weeks ago. janet yellen has met with a counterpart. i think there is the perspective of xi jinping and president biden meeting in san francisco this year at the apec summit and the g20 in india. this is not enough. i'm not sure if there ever could be enough when two of the great powers of the world are in this escalatory spiral but you need to take baby steps to restore trust and build confidence and i think being at the shangri-la dialogue and allowing for other forms of dialogue to occur there and in parallel is a step in the right direction to avoiding any conflagration. both parties know that any type of conflict would be devastating for everyone. china and united states and

everyone in the region. nobody wants that. shery: we heard earlier from richard mars, the defense secretary in australia. how much can these middle powers including not just australia but india as well do in helping to thaw the relationship between the u.s. and china? >> i think way bit. you mention india and australia. i would offer japan might be the key or the linchpin in the region. japan is obviously an american ally since after world war ii. it is also a massive trading partner with china. countries like japan, australia, they have these military relationships and economic relationships with the united states but they also depend heavily on china for trade, export and import. it is going to be vital for countries like japan to play a major role and when you think of the indo pacific and that term

it is about including india as a growing power. india is beginning to exert more influence and has to exert more influence. it is soon going to be the most populous country on earth. the middle powers and regional players have to have agency and lead of the conversation about the escalating tensions because they are the ones that will suffer the brunt of consequences should tensions continue to sour or a conflict occur. shery: the thing about asia is there are so many historical issues, territorial issues. you mention japan and we have this ongoing spat with south korea. that seems to have improved but how much will these lingering challenges make it more difficult to show a united front? >> i think the thawing in

relations between south korea and japan is indicative of where the region is headed. everyone is aware, leaders are aware china is growing. china is exerting more influence. china is building its military. they have now kind of a reason to address potentially smaller problems that have been going on for a long time to kind of get to a more sustainable and productive regional balance. one of the things i think asian countries, singapore in particular have been clear about is the economics of the region are vital. the aegean -- the fiji minister said green battalions are not actually the threat to them. it is actually claimant change. -- climate change. there are number of threats pushing these countries together on kind of collective issues.

i think as these collective issues start ameliorating what political scientists call the collective action problem or the unwillingness of countries to work together to bear the cost of working together the likelier we are to see a continued thaw in relations between japan and south korea. shery: if you missed any part of that conversation on the ongoing clinical conversations -- ongoing political tensions in asia, tv is your function. you can watch us live and dive into any of the conversations we have had in the past. do send us instant messages during our shows. this is for terminal subscribers only. check it out at tv . this is limber. -- this is bloomberg. ♪

shery: bloomberg economics says the fed is most likely to stand pat at its meeting next week despite a blowout jobs report for may. let's discuss what else we are hearing about the outlook for rates and bring in annabelle. some are criticizing the feds decision to signal a pause in the first place.

>> especially because we got this guidance coming through from fed officials. a number of them speaking last week saying they would be looking to pause at the next meeting ahead of the jobs data the came out on friday in the u.s. mohamed el-erian saying fed officials should not have led officials to expect a pause at the upcoming meeting. he says if the fed is serious about reaching its 2% inflation target what it does need to be doing is moving the rates needle sooner. he spoke to us in an interview talking about the fed having a bigger picture problem. that comes down to the data dependence. >> one month of data is going to make a huge difference is i think fulling yourself. that is the risk of being excessively data dependent. you get stuck in smaller and smaller corner. the data will pin you there. as the data becomes fluid it ends you there even more.

-- it pins you there even more. shery: if the ped did pause in june does that mean we might need a bigger rate hike come july? >> that is how one of the comments we are hearing from officials under the markets because we have been whipsawed by the different risks. recessions started to pick up. concerns around banking sector stress. we have been speaking with the former treasury secretary larry summers about what is the primary risk for the fed and officials what they are facing. he says it is down to overheating the u.s. economy. that should be the primary concern for the fed. as you say larry summers is indicating perhaps fed officials will need to rise to 50 basis points if they do decide to stand pat at the next meeting. in terms of where you can see in markets come this chart taking a look at market and moves.

you can see the slight uptick that came in june. primarily the focus in markets is we are going to see the height coming through at the meeting in july instead. paul: economists in the market are divided over which wales really is central bank is going to move tuesday. our economics reporter joins us now. what is feeding into this? >> it is not very common to see markets not convinced about it as well as the economists. we have had inflation report which was really strong. had a wages reported. minimum wage decision last week which came in at 5.75% could pretty strong number. that led some economists to believe that the rba will be hiking. on the flipside we had an employment report which showed

the jobless rate going up. we had signs of easing in the economy. another thing we are seeing in the housing market is prices are going back up again which the reserve bank does not want. there are a few things that are playing against each other. making the decision is really hard so that is one reason why economists and markets to leave this meeting is alive and anything could happen tomorrow. paul: every meeting has been live. 11 of the past 12 have seen a rate increase. what are the impacts we might anticipate from the increases so far we have not seen yet? >> one of the things we have yet to see is the move from fixed-rate mortgages which were fixed around two to three years during record low interest rate period to they will come up for removal around september and october. that is when economists say the

largest impact of rate hikes will be felt. it is still lagged and we are not really seeing the impact of 11 rate rises so much. if you are in sydney, if you go to restaurants, cafes, hubs, -- pubs, there is still a lot of activity. even in data we have one month of weak data and one month of good data. it is not really coming out in data either. with the unemployment rate we had one date pointing to higher jobless rate. we will have to see if the trend continues and employment eases. that is when the reserve bank will start worrying. paul: our economics reporter as we count down to the rba decision tomorrow. we are going to have more on the rba in our next hour. why they see a higher peak rate

with hikes coming in june and august. be sure to tune in to bloomberg radio from the days big news riker street you can -- news breakers. plenty more to come. stay with us. ♪

paul: a quick check of the latest business flash. thai airways is looking to expand its fleet as demand for travel sores. it is launching proposals to order 30 new wide-body jets which it expects to receive i-20 26. the new orders along with least jets will push fleets to more than 100 13 compared to 103 pre-pandemic. thai airways is rebuilding its operations as it goes through a court ordered monitoring debt restructuring. the ceo of boeing said fleet replacements whole happen in or after 2025. considerations for the new jets include the need to circumnavigate russian airspace which add several hours to a flight. airbus says the wide buddy aircraft market is set to experience a lengthy wait time similar to the single aisle segment.

airlines are rapidly stocking up on long-haul jets. wide-body aircraft are generally more complex to manufacture due to more elaborate interiors. the world's airline leaders will be gathering at the international air transport agm and its temple on monday. we will speak to the qantas ceo. he will be stepping down in november after leading the australian airline for 15 years. daybreak: asia up next. this is bloomberg. ♪