here the top stories. asian stocks treading water on fresh signs of slack in china. we are hearing beijing will start selling $138 billion in ultra long bonds on friday. trade tensions also hurting sentiment. president biden sect to quadruple some tariffs on chinese goods this week. australia's budget on tuesday set to predict inflation returning to target by year-end. our interview with treasury jim charmers is coming up. let's look at how we are faring on markets. we are going sideways. david -- our reporter is here with more. >> we are seeing negative territory in these stock benchmarks. a couple of things happening here. we had china data on the credit front, raising concerns about how it looks pretty soft. even on ppi, there -- we show

deeper contraction. all of this being wrapped up along with concerns about how the biden administration may be quadrupling tariffs on chinese goods. along with that, don't forget, we have u.s. data showing consumer sentiment declining, rising inflation expectations placed on one survey. we will keep an eye on the u.s. cpi numbers. asia stocks are treading water. although we are seeing a bump up on the hang seng. keeping in ai on the offshore you on as it moves toward the 724. in keeping in ai on the japanese currency, along with jgb's. we got the boj in today's purchase, reducing the number of bonds for five to 10 year. this, as some say, a test balloon for scaling back its bond purchases. take a look at the data out of china. this is a broad measure of credit. it has declined for the first time since 2017. this is when the data first

started being -- the concern here is the pboc's ample liquidity that the household firms are not biting, adding to the list of concerns related to china. paul: thanks very much. staying on china. bloomberg has learned beijing plans to start the sale of one trillion yuan and ultra long bonds that will begin friday. an economist joins us with more. $140 billion, sounds are in you on. what is the money going to be used for, and is the demand there to soak this up? david: according to this statement from the government, the money will mainly be used for key areas in the economy. such as the agricultural side and the areas for the long-term sustainable growth of the economy. that is what we have got so far.

but actually, we did have more data on that. paul: let's take a look at some of the data we have out of china on the weekend. ppi looking weak. cpi, staging somewhat of a tepid recovery. are we at this stage where this warrants a policy response from the pboc? david: we have been calling for the pboc to do more rate cuts this year. because of those after inflation reading. what we are worried more about, the inflation, is the ppi. the ppi, in my mind, 19 months in a row. not that it would be a drive to profit. that is the reason why we think the pboc should do a rate cut. obviously, the pboc has some kind of concern of the rates. we think it can still cut rates, but it should be in june, our

best case. to be honest, with the credit we have announced in the weekend, we now think the cut in may is of higher chances now. paul: china is facing external pressure -- pressures as well. let's talk about tariffs, and how president biden has a plan to raise levees on ev's. how might that impact china's economy? david: our assessment is that the proposed tariff, it has limited impact with china's economy. that is because the exports of ev from china to the u.s. is a very small share compared to the total export package, and also china's economy. , definitely it will have some impact. and in the extreme case, it can drag the growth by one percentage point.

, on the other hand, we find it a very extreme case. we think that for most cases, the impact should be in the longer-term. because it demonstrates the u.s. tough attitude toward china exports. paul: your team there at bloomberg economics has a new report out, a deep dive on china's economic challenges. and a lengthy read it is as well. can you walk us through the key points? david: i think for the recent -- the near-term, we think the key is still to boost the economy's confidence. we have seen that. the pboc took a lot of effort on this to boost credit growth. as i said, the confident thing, we cannot rely on the pboc only to boost confidence. i think now, the ball is more on

the side of the government. they need to do more. and we think the one trillion yuan offshore long could be a way to help. we think it needs more action, more than that. paul: bloomberg economists david qu in hong kong. subscribers can read more of their bloomberg intelligence deep dive into china's economy on the bloomberg terminal. let's take a quick look at the week ahead. it is for to be a big week for the global economy. key data coming out from the u.s. and china. bloomberg economics expects april's u.s. cpi and ppi numbers to show a marginal improvement for march. they see core cpi moderating, and the headline figure rising due to higher gasoline and food prices. here in asia china is going to be releasing more economic data on friday. that is set to show a production rebound. the pboc also expected to keep

its one year mlf rate unchanged wednesday to avoid further you on weakness. let's get more on markets. bring in our first guest, who thinks the dollar will stay strong. and she only expect one rate cut from the fed this year. joey to his head of asia fx research, who joins us from singapore. thank you for joining us. we will get to your calls on the fed in a minute. i want to pick up on what david was saying about china. in light of those weak ppi numbers and tepid cpi numbers we had as well over the weekend, david thinks this invites a policy response from the pboc. are you expecting anything meaningful in that regard? joey: yeah, i mean, the senses that the pboc has been keeping the currency very stable against expectations and the external challenges through april. it seems like the tolerance level for domestic issues, even external issues like yen

undervaluation, is very high. we don't think the reason data points itself will trigger an immediate change in policy. paul: we have had a lot of -- our team has been busy with china today. and a lot of data out that we have been illustrating, including china having its first credit extension drop since 2005. we have seen government borrowing fall, demand for mortgages is very low as well. what can shake the animal spirits out of hibernation? joey: i think definitely more government policies, government vision for the longer-term growth prospects, is very important. for this, we have to look forward to the possibility in the month of july, for some of this more medium-term directions. paul: i just want to talk about the direction of the yuan as well. it has weekend 1.5%. the offshore you on.

how much more depreciation do you expect to see, or how much more might be tolerated? joey: to be frank, 50 -- the depreciation pressures have been immense. the actual depreciation that has materialized it's actually quite small. this shows the currency stability is very important policy put -- focus for the pboc. to the extent we get more of the same for the rest of the year, i think they will continue to see their currency be stable. the risk is that geopolitical tensions become a much bigger risk in the second half of the year. we are getting a flavor of the tariffs coming from this week. the broader test, if we have a broad-based, like what we had, those will be the ones that could potentially shake the rmb out of its current stability mode. paul: it is not just potential tariffs from the u.s., but it is what is going on in the broader macro picture. in particularly, in terms of

inflation, we have seen super core inflation staying sticky. we will get u.s. and cpi numbers in a couple of days time. what are your expectations around that read? do you think there is another chance of an upside surprise? joey: i'm -- the thing about inflation in the u.s. is set -- is it has been on the upside for three times in a row. our economists are expecting .34% this month. i think that is reflected in the market expectations. the bar is getting higher for u.s. inflation data to keep beating. but that does not mean the dollar will necessarily soften. at the end of the day, objectively, inflation is still at a high level, even if it is not surprising any more on the upside. paul: that suggests the fed is going to be higher for longer. the question is how long. i know you have one rate cut in your forecast. is there a nonzero chance that

the next move from the fed could be tightening? joey: yeah, that's true. we have to investigate what are the potential implications for the dollar yen and it does not hike. what it's worth, powell dismissed that possibility already. and that actually cost the dollar to soften a bit. if that were to come back, than the dollar will strengthen again. obviously, you will be at the peril of low yield currencies in asia, which are already having significant interest rate differential with the u.s. paul: in of that, i give you exhibit a -- in terms of that, i give you exhibit a, they yen weakening. do you see that sliding further, not that the ministry of finance has said that it will intervene, but do you think we might see more policy to support the end? -- the yen? joey: evidently to the disadvantage of japan.

we have seen in the historical intervention episodes, that a couple things are necessary for intervention to be sustainably effective. one is that the boj probably needs to hike rates as well. we are expecting the boj to do another rate hike in the third quarter of the year. another thing important historically is that the fed needs to cut. the third thing is we need to get some kind of verbal endorsement from u.s. treasury or u.s. officials. we have had a soft version of that, but maybe the market is expecting a more ringing endorsement in that form. paul: are there any em currencies looking undervalued to you at the moment? joey: frankly speaking, the moves on the value currency is the yen. the second two that is there are some in asia looking on the low side of those evaluations. the korean won, taiwan dollar.

a lot of this -- of these currencies have been undervalued for a long time, at the end of the day, valuation cannot direct us to the direction of the currency. we still need some policies to fall into place, namely the fed's monetary policy. paul: you mentioned geopolitics as a key risk. are there any other risk factors you are watching at the moment? joey: we already talked about some of the risk that we are watching out for. the potential for the fed to hike rates, geopolitical tensions the third thing is geopolitical tensions in the middle east, bring back the oil price increased to further raise the risk of stagflation in the global economy. that is also a potential risk to think about. paul: joey chew, thank you so much for joining us today. still to come, we will be joined by the president of india's largest engineering and construction firm. and we will discuss what is next for the company after it

reported a fourth-quarter profit beat. we will discuss the west's effort for chip supremacy over china. a big take discussion just ahead. this is bloomberg. ♪

paul: let's take a look at some of our top geopolitical stories.

russian president vladimir putin has replaced as long serving defense ministry, in a surprise move. he had been in the post since 2012. the reshuffle is the first major shakeup of the kremlin's military leadership since the ukraine invasion. it comes as russian forces seek to capitalize on a battlefield advantage in the war. the u.s. says israel risks fueling a postwar insurgency in gaza, with thousands of armed militants remaining in the territory. even if israeli forces invade rafah. israel says it has evacuated the eastern third of the city as it prepares to expand its military operation. last week, the u.s. said it would withhold weapons that may be used in rafah, and cited evidence that israel had breached international laws protecting civilians. australia's government is set to release its annual budget on tuesday. there is potentially good news on inflation. for more on this, let's bring in our reporter, ben wescott here in sydney. thank you for joining us.

you have the pleasure of sitting down with the treasurer on sunday morning. ben: i did. paul: what did he tell us? jim: ben: ben: he told us we should expect more from this budget in critical minerals. there have been about 500 million in exploration for general resources, with a specific focus on critical minerals. he told us there will be more in the budget for that. he told us he is not backing down on his rba legislation, which will split the single board into two boards. about three things we don't know left from the budget. we don't know whether the government will have a second consecutive surplus, although we suspect they probably will. we don't know exactly what the future may will look like. we don't know exactly what the subsidies for households in terms of energy and rent will look like. we covered all of this with the treasurer, who i spoke to on the weekend. >> i think we have to strike a finer balance in this budget between the near term and longer

term. also making sure we can provide that cost-of-living relief for people who are doing it really tough at the moment at the same time, as we invest in a future made in australia. it will be a responsible budget ease cost-of-living budget. forecasting inflation at the moment is tricky. it's tricky at the best of times. but what the budget will do is it will put downward pressure on inflation rather than upward pressure on inflation. we have made substantial progress in australia in the fight against inflation. it is not mission accomplished because people are still doing it tough. the budget will be focused on that. ben: over the past six months or so since you have put this budget together, the outlook for inflation has changed quite a lot. has that changed your thinking on the way you have cut the budget together? jim: we are making that progress in the fight against inflation. we know it needs to be the primary focus, especially at the front-end of the budget. that is why you see substantial spending restraint, you will see our cost-of-living measures

designed in a way that takes off inflation. overall, our budget will be part of the solution to inflation rather than part of the problem. ben: moving onto a future made in australia, how does the future made in australia differ from the ira in the united states? jim: we are trying to make sure australia grabs the vast economic and industrial opportunities from the global shifted to net zero. this is of things we are contemplating are not out of place. whether it is in the united states or in most of the developed world. four australia, we have huge advantages. we have been dealt incredible cards. our resources base, our industrial base, energy, their human capital base, our attractiveness as an investment destination. what a future made in australia is all about is not replacing private investment and the opportunities of the future, but attracting more of it. that will require public investment. we need to make sure we get value for money for that. we have our own unique set of

advantages, as the economy changes, the globally -- global economy. . we want to make the most of it. we want to create good, secure jobs and prosperity into the future. that requires us to renew and broaden and deepen our industrial base. ben: you mentioned australia's unique advantages. isn't australia coming too late to this? a lot of the other countries we will be competing against have had these policies in place for quite some time. jim: we better get cracking then. we will on tuesday. we have made to investments already in our ambitions to become a renewable energy superpower, which is at the core of a future made in australia. the global economy of the two will be powered by cleaner and cheaper energy. we have it role to play in supplying that to become a reliable supplier of that energy. there is more that needs to be done. a combination of tax incentives, targeted grants, making sure we

have the architect -- architecture to attract and deploy all of this private investment. ben: on critical minerals, which is part of this, you announced $500 million so far for exploration for critical minerals. is that all we are expecting or should we expect more on tuesday? jim: you should expect more on tuesday. critical minerals are the opportunity of the century for australia. this is a golden opportunity for australia. it is one of the reasons why there is so much attention from global and domestic investors. we need to make sure we can attract and deploy that. the exploration is an important part of that. the geoscience open source science to map australia, are groundwater are critical minerals opportunity. ben: speaking of global opportunities, china, if you green sheets and their economy. four australia, we might like to see a lot more. from your conversations around

the world ahead of this budget and the rest of the year, are you expecting to see more stimulus in the chinese economy? jim: i think there is a prospect of that. our budget will forecast chinese growth with a four in front of it, for in the near term. if that -- that will be the weakest period of growth since china began opening up in the late 1970's. the chinese economy has been soft. the property sector has been a big part of that. not the only part of that. that weakness has offset in a global forecast this rank we have seen in the u.s. ben: that was the interview with jim chalmers. there is a possibility this could be an election budget. something he was not ruling out on sunday. paul: he was coy with that. then wescott, government reporter there. stay with us. plenty more ahead. this is bloomberg. ♪

paul: here are some of the top corporate stories we are tracking. china's security watchdog says it is investigating hedge fund asset management for suspected illegal activities. the fund failed to pay investors seeking redemptions and is controlling shareholder -- and it's controlling shareholder is missing. they have reportedly sealed off the company's office in the city. anz group has revealed australian regulators are investigating its execution of a government bond sale. the wiry relates to the issuance of 10 year treasury bonds by the australian office of financial management, also known as a ofm.

anz was appointed by the a ofm to act as a relation manager. the bank says it is fully cooperating with the investigation. we are keeping an eye on macau casino stocks. this is on the news that china said it will make more mainland cities eligible for solar travel. more cities added to that individual travel scheme, according to a statement from the national immigration administration's websites. watching buyer take stocks as well. getting as 15%. leading advance of the china biotech stocks. plenty more ahead. this is bloomberg. ♪

paul: this got some breaking news on the terminal, although it was kind of us that broke at a while ago. confirmation of this bloomberg reporting that china will so 20

year, 30 year, and 50. year special sovereign bonds some in long data bonds that will be sold to the tune of one trillion yuan, that is $138 billion. this as china seeks to raise funds to support its economy. 20, 30, 50 year government bonds will be going on sale, confirming bloomberg's earlier report. we have china markets heading to lunch. let's look at how we are tracking with those benchmarks. kind of a meh day. tracking sideways at the moment. mentioned earlier that the china biotech names doing reasonably well. we did hear the news earlier that there will be a u.s. bill aimed to block biotech companies from accessing federal context -- contracts. it has not hurt to cheat. . it is rising at the moment.

some of those chinese stocks doing well. the hang seng tank index doing ok as well. got you on strengthening against the greenback -- sorry, weakening against the greenback. most of those indexes for equities in weaker territory. let's get more on markets now. let's bring in mark cranfield. i want to start on that story we were reporting on earlier about those ultra long bond sales in china. what is that money went to be used for specifically, and is the demand there to soak this up? mark: the first part, everyone would like to know where the money is going. i don't think that is clear just yet. in terms of demand, certainly a very important question for investors, especially for the 50 year sector. that is the part of the curve that gets tested. very few governments around the world ever sell bonds as long as

50 years. it is unknown what kind of demand would expect. if you look at the way the chinese curve is set up, we would extrapolate and expect that it would be below 3%, which does not sound very exciting for a very long duration bound. of course, if people expect that there will be triple cuts in the future from china, and other forms of easing under stable currency. then it might not look so bad. you probably will have domestic investors in the insurance sector who need to buy very long duration bonds. they would probably be keen on it. but people will also want to see if that affects the chinese credit rating. they are in total setting up large amount of bonds here. the rating agents will be looking at it carefully, particularly as china's fiscal situation has been deteriorating slightly over the past couple of years. it is a bit of an unknown how the market will receive it in total. it is good for the chinese

economy, in the sense that it is clearly kind of a liquidity injection to the overall economy. investors want to know how quickly is that money being deployed and what kind of final demand do we see, especially for the longest duration bonds. paul: we have also had the news that we have been talking about the u.s. and increasing tariffs on china ev's. what is the impact of this going to be, and is it symptomatic of it being an election year of the u.s.? mark: i think nobody is so has that there is the threat of more tariffs coming between the united states and china. i think about a has been following the united states on the general news, and would have seen that coming. that is why the market has not been shocked about it. if you look at what bloomberg economics is saying, the market would be most concerned if they got offered a future generation products, which china is trying to put together.

apparently, it is a key platform of president xi. country has been putting money into those areas. if the united states does target those, that is probably more serious than the current round. in terms of the market, yes, it was well-prepared. the chinese currency has weekend a bit, but not dramatically pair the pboc has a pretty good grip on the currency. certainly if these tariffs get more substantial and continue for a long time, the safety valve is weaker. that is the question that markets have not fully addressed yet. has been under relatively low volatility for a few weeks. but it is certainly somewhere where the pboc could allow it to move quite a bit. paul: we are going to get inflation data out of the u.s. this week, possibly the most equally awaited data of the week. stocks have been performing well off the back of earnings. if this high inflation, weak

growth narrative starts to take hold, what is the future for equities? mark: the equity market has been absorbing it pretty easily, because exactly for that reason. the inflation numbers, yes, maybe they are slightly higher but they are not dramatic. if you look at the overall state of the american academy, it is doing very well. you almost have a goldilocks scenario. in terms of equity, they are focused on ai, they can absorb slightly higher inflation numbers. as long as the job situation stays strong. it is the bond market that is most concerned. the last two reports are the ones that came out in march and april. the treasury market considerably. that is where the biggest impact -- really, it is a bigger story for currency and bond markets. equities can probably deal with it unless it is a really shockingly high number, and that puts the fed back in the picture for a potential rate cut, which jerome powell has said he does not want to do. never know.

if the inflation data is really hot, even the fed may need to reconsider. paul: i just want to ask about the mliv poll question, or survey this week. it threw up an interesting result. 30% of respondents saw a u.s. tech stocks as inflation hedge. gold still out in front of 46%. but these -- that how do these compare when it comes to an inflation hedge? mark: that is the ai narrative. there are a lot of investors who think the ai story is immune to what happens in the broader economy, what happens to interest rates, whatever monetary policy happens to be going. . these companies are generating sufficient numbers, and the prospects are so good for the future take-up of ai. you have apple, talking about putting it on their iphones. another increment in the whole story. as long as there is tremendous interest and potential in that respect, then tech companies look outstanding relative to the rest of the market.

as long as they continue to build reserves via that route, then gold continue to be a good outperformer. paul: mliv strategist mark cranfield, thank you as always for joining us. asia's earnings, that spotlight will shift to china's internet giant, alibaba in tencent. they could report single-digit revenue growth. this is according to analyst estimates. bloomberg intelligence is expecting slower first quarter added growth for baidu and better margins for jd.com. we will hear from japan's megabanks. they could see a jump in their annual profits. on monday, softbank will probably report trimmed losses as its vision funds returned to profit. let's stay on tech. and superpowers led by the u.s. and the european union, funneled nearly $81 billion into producing the next generation of semiconductors. this escalates the global showdown with china for trip supremacy.

the u.s. industrial policy reporter mackenzie hawkins has more on today's big take. mckenzie, truly enormous amounts of money being spent here. can you give us a sense of the scale of the spending and how it is being deployed? mackenzie: we have governments from washington to brussels, to tokyo and seoul, pouring billions and billions of dollars into semiconductor production. this is because the pandemic revealed there was an overconcentration of supply chain, especially for the most advanced semiconductors in east asia and particularly taiwan. you have this push led by the u.s., and then quickly followed by a lot of u.s. allies, to not just make sure we have the supply chains safe at home, but also catch up to decades of industrial policy in the sector from beijing. paul: there are very long. timelines involved here it takes a long time to build a chip fab. when can we expect to see all of

the spending bear some fruit? mackenzie: right now, we are and what commerce secretary gina raimondo has described as the bottom of the second inning in the global race for semiconductor supremacy. the u.s. has allocated around $32 billion of a total of $39 billion fund to lure chip companies to american soil. none of that money has actually gone out the door. we only have preliminary agreements contingent on due diligence, and company heading -- and companies hitting certain benchmarks like making the facility and starting production. estimates show that companies will bring those facilities online starting in some of the earliest cases, in late 2024, early 2025. you will see a big surge in american chipmaking capacity in 2027 and 2028. semiconductor industry association critics by 2020 -- by 2032, if these facilities come online as promised, you can see the u.s. taking 28% of

global advanced logic semiconductor capacity. those are the chips that serve as the brain of devices. that would make country sec. from taiwan and up from 0% today. it could be a massive realignment of global semiconductor supply chains. paul: u.s. industrial policy reporter mackenzie hawkins there. subscribers can read more on today's big take on the terminal . or you can head over to bloomberg.com. this is bloomberg. ♪

paul: welcome back to "bloomberg markets: asia." you are watching the india focus. let's check in on india's premarket session. we have futures shaping up in negative territory. that is perhaps not surprising. that is very much the theme we are seeing around the asia pacific. very much a bus cop theme. we are going to get april cpi numbers later on. we are expecting cpi in april to soften a little, down to 4.8%, wholesale prices expected to pick up. they are coming out tomorrow, 1.1%. we will keep an eye out for those april cpi numbers. two minutes, thereabouts.

until the open in india. india's largest engineering and construction firm reported its highest quarterly profit in four years. let's get over to mumbai now where bloomberg's reporter is standing by with the company's cfo. >> good morning. and you are right. this is the country's largest construction and engineering firm and has a great barometer when it comes to public spending which have been a big theme for india's economy over the last few years. potentially the return of private investment. you pointed out the quality profit. i should note that it's a guidance for fy 25, april to march, this year, is lower than what most people expected on account of a disruption in infrastructure orders by the central government in india because of the ongoing election and the troubles we are seeing in the west. to get more insight on how all of that will pan out through the course of the year, i'm joined

by the president in group cfo. good morning. thank you for your time. let me get straight to my top question. which is that, this last year, you booked more than half your orders from outside india, 54% of your orders were from outside india. most of them from the middle east. a sizable amount from u.s. and europe. talk us through the sustainability of that for this next year? >> good morning. i'm good morning, viewers. i think we operate on large orders per ticket. there is a very likelihood of the percentages going to misleading directions in terms of 51% or 43%, whatever it is. the fact of the matter is, during the first nine months of the year,, talking about

december 23, -- so it did. consequently, the trajectory of orders we got in quarter four of the year was pointing more towards international, and less towards domestic. consequently, as the year as a whole, we have had big orders in the middle east. both in the space of renewable energy, as well as in hydrocarbon. the development and the middle east is concerned, it used to be almost a single pony trick in terms of hydrocarbon orders. over the last few years, there has been considerable broad basing of investments that has

happened. downstream industries are getting invested into industries that consume a lot of value added product. the cities are getting developed. they are connected. it is now aiming to become a tourist destination for reasons other than to buy -- and then dubai. all of this means the kingdom there is thinking about enlarging their footprint of infrastructure. fortunately, thanks to its years and years of work in india, has acquired prequalification in most parts of the industry. when this gets replicated in the middle east, it does come a relatively easy prequalification criteria. menaka: you expect this to continue in terms of the quantum bowl orders from the middle east, and also the increase we have seen in the u.s. and europe? >> the increase in u.s. and

europe is part of our i.t. services. when we report our consolidated financials, even though these companies have listed subsidies, we do have to aggregate their revenues. and hence, the distribution, i would like you to look at it a little differently. just look at the projects in the geography distribution. . as long as we continue to be u.s. coming u.k. coming europe heavy. insofar as the middle east investments are concerned, i see that the redistribution of investment priorities are beginning to happen. for example, one of our largest company -- largest customers, there is a move, which we heard in the press, that they would like to not exceed 12 billion barrels a day of production. at the rate in which we are moving on the investment program, it could have taken

them close to 15 billion barrels. possibly, there is some pause to make sure it is created through oil and gas and is getting redistributed. and renewable energy in a large investment, almost 18 gigawatts in terms of renewable projects. menaka: forgive me for interrupting you, but time is short. i want to get in a couple quick questions. what is the verdict on the return of private investment? the last time we spoke, a year ago, you said that was 32% of your manufacturing segment. are you seeing a buildup on that? can we confidently say the private sector has come back to investment mode in india? >> to be very brief on this, i think the sectors we are investing in last time we will continue to invest, largely by industries seeing growth in their product and services. menaka: all right, fine. new businesses, i have to ask

you this. hydrogen electrolyzers, i think you have started the functioning of the first one. what is the ramp up there? in chip design, i believe you are in the hiring process what is the time to market that? >> the product we have manufactured has been developed so far. we are putting it through extensive testing before we announce it to the markets. we do think by 2024, 2025, we will begin to ramp up production we are focusing on trying to increase the capacity from one megawatt to four megawatts. we expect to crack some development streams during the course of the year. insofar as chip design is concerned, we marked our territories well. time will tell to how successful we are. we are trying to assemble a crack team that will help us design the chips and market them to the customers. india has a lot of talent on

chip design. we are counting on that talent to work for our brand. menaka: let me finish up with a last question on hurdles or challenges. you have mentioned for the year gone by that logistics and supply chain is one of the big reasons for why it was lower than anticipated. you spoke to me in the past about not being able to find enough talent in india. though i do take cognizance of the fact that you have added 10% to your engineering workforce. can you talk us through both of those very quickly? >> sure. i think the fact that we are constrained by bandwidth and talent is getting addressed. one of the reasons why our margins have declined is we are investing some portion of our profits in building capabilities for delivering a huge order that we have, excess of $60 billion over the next 3, 4 years. it would mean that we have that

capability. we are investing in the growth, out of our margins parents i can we, with mix of international business, i think the cost of engaging workforce is also going up. consequently, the companies are doing everything possible to take advantage of the opportunity. to make, it would mean investing some portion of the profits. i think it is well worth investing. menaka: how much more do you hope to hire this fiscal year? >> in all depends on the execution. there is no specific number in our mind. but i do think that we could possibly keep working anywhere between 5000 to 6000 people. menaka: all right, we will have to leave it there. thank you for joining us on bloomberg tv. with that, i will hand it back to you. paul:paul: all right, thank you so much. we have plenty more to come. stay with us. this is bloomberg.

♪

>> over six decades, singapore has transformed itself from a trading court to a budding financial center that is envied the world over. >> it's gdp per capita has surpassed the likes of the u.k.,

the u.s., france, and other developed countries. >> it is held up as an example for any country seeking to grow a robust high-tech economy. >> this is a wealthy economy with well established institutions of good governance, efficiency, and long-term planning. >> while singapore has been an economic success, its leadership is criticized by some for further -- for the restrictions on civil liberties and the media the buildup of wealth has brought problems of its own. housing prices have increased, the cost of living has gone up. this is the singapore that lawrence wong is inheriting as the country's new prime minister. so, whether it is minute -- managing discontent or guiding singapore's continued evolution into a tech hub, long's job is to sustain the city states hard earned success. paul: that is our very own averill hong looking at

singapore's formula for success for bloomberg originals. as deputy prepares to take power. . we will have special coverage of that historic leadership hand over this week. let's look at how we are tracking on markets at the moment. kind of a risk off day around the region. we do have a few bright spots. markets in hong kong in particular, they have recovered on that news that bloomberg first reported. but has since been confirmed that china's government is going to auction off one trillion yuan of ultra long special bond issuance that will include 20, 30 come in fifty-year securities. we did see something of a rally off the back of that news as well. we have big interviews coming up that we want to tell you about. we will be caring about the state of u.s.-china relations and china's overcapacity issues from treasury secretary janet yellen. we will also be speaking exclusively to french president

emmanuel macron about trade, geopolitics, and international investment that is at 1:00 a.m. tuesday, hong kong time. we will have an exclusive interview with chairman and ceo david solomon. he will be joining us from the france summit which will be hosted by president macron in versailles. that is it from "bloomberg markets: asia." stay tuned for that. this is bloomberg. ♪

and they're all coming? those who are still with us, yes. grandpa! what's this? your wings. light 'em up! gentlemen, it's a beautiful... ...day to fly.

♪♪

♪♪ ♪♪ ♪♪ sandals jamaica sale is now on! with rates from $199 per person per night. visit sandals.com or call 1-800-sandals >> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. >> the following is a paid presentation furnished by rare