annabelle: mr. "daybreak: asia." we are counting down to faith major market opens. a bit of a subdued session today. traders may be rethinking their expectations around inflation. jamie dimon told us the chances of things going on right are higher than people think -- going wrong are higher than people think. haidi: yes, being brought down to earth a little bit. not surprising after we had record high after record highs across an array of asset classes. an exuberant reaction to those cpi numbers. and annabelle: things are very elevated anyway because we saw the dow jones hitting the 40,000 mark. but let's turn to the open of japan, south korea, australia

also. we are tracking the potential job warning, in response to what we are seeing in the yen, jgb yields as well, continuing to move higher and closer to the 1% mark. suzuki saying they are committed to achieving the fiscal consolidation goal. what else we are watching, it comes down to expectations around where the boj goes next. we have been hearing from you next to the my chief economist at the bank, saying that doj could raise rates as soon as june, maybe even space for rate hikes four 2024. today in the session, we are watching the japanese yen and also keeping an eye on equities, a little under pressure so far. still monitoring from earnings. key to track will be whether that doj cuts its bond buying neck he saw on monday. given the backdrop of the weaker yen, the yield gap between japan and the u.s.. japan, let's switch nmc

-- switch and see how south korea is trading. the outlook is a bit weaker, not quite the magnitude of the dump that can japan so far, but still the kospi is 0.2% of the dump fed and the korean won looking weaker as well. we had jobs numbers coming out earlier today. the unemployment rate staying at 2.8% in april matching the consensus estimate. again, no change for the month prior here, tells us they are still too tight because the labor market is still at elevated labels -- elevated levels compared to what it was in the pandemic. the be ok still has some time before. haidi: the insignia we are seeing a bit of mutant upside. a lot of it is up to what comes out of china today. we have the proposed meetings with banks and policymakers. we had to speculation that more meaningful measures to support the property market are on their

way, including the report suggesting a proposal for local governments to buy unsold inventory of homes is on the table potentially. we are watching that because it has been living the life that iron ore and aussie dollar this week, we are seeing the aussie dollar trading higher, 0.6 681. bonds following the trajectory that we saw with treasuries overnight as well. it remains front and center in terms of fed officials suggesting interest rates should stay higher for longer. the latest voice coming from cleveland fred president loretta mester, who spoke and said it could take longer to get to that 2% target. >> the incoming information to indicate they will take longer to regain the confidence, so holding of a restrictive stance for longer is prudent at this point.

annabelle: let's bring in audrey goh, head of asset allocation at standard chartered wealth management. seems like after the u.s. inflation print, we had traders optimistic that inflation is trending downward. now we have caution from fed officials and also from jamie dimon saying there is a high risk that things don't go to flank. do we need to have more caution in the markets at this point in time, do you think? audrey: audrey: where inflation is concerned, our view is that we should see inflation continued to progress along the way. if you look at the most recent economic data, we have been on the weak side. industrial production in the month of april, that has stalled. it is ultimately going to feed into inflation pressure over time. disinflation will still continue. the road may be bumpy nonetheless we expected to continue to allow the fed to cut rates twice towards the later part of this year. annabelle: so if you have that

sort of environment, you sent two fed rate cuts priced in by a lot of investors at this point in time, what outperforms in that market? which asset class in which regions, for instance? audrey: we still like u.s. equities. valuations have always been a sticking point when it comes to u.s. equity investors, but if you look at the latest earnings season, the q1 earnings season which is almost over by now, most of the company's surprise to the upside. we have also seen analysts revising up their earnings estimates for this year and into next year as well, so we do believe that is the fundamentally the trend in the right direction. if we do get a rate cut, that should feed into easier monetary policy. the u.s. generally benefits from a lower in certain environment.

so that's one area we like. in addition, we like japanese equities, there is a lot of things going on for japanese equities when it comes to reforms, the country emerging out from inflation into a more normalized inflation regime. during this period, we are starting to see consolidation in japanese equities because of the strand in the yen. . there is a great opportunity for investors when it comes to. haidi: japanese equities that has been some redirection back to china away from japan after flanders went to the opposite direction. for china, do you see this as a short-term tactical rebound, or is it insignificant significant rereading of ms. gossett's? audrey: -- is it a significant rerating of risk assets? audrey: for now, i think that it is quite technical in nature.

if you think about it, a lot of investors are light on china, quite bearish on china to begin with, so there is some rotation out of the u.s. which is really outperforming tremendously, entertainment where it is cheaper. -- into china, where it is cheaper. even today, the policymakers are meeting with bankers to consider whether they want to enact a proposal for developers to buy up some of the unused or unsold homes in the market. that would bode well for investor sentiment, and more importantly, home buyer sentiment as well. one of the key concern homebuyers have is, even if i buy the house today, perhaps it will not be delivered to me because of finance issues. so it should go a long way to alleviate these concerns in

china. haidi: what sectors would you be liking? it is interesting that you highlight consumer. we are expecting in the data out today, to continue to show the drug consumers -- drag from consumers? audrey: who continue to focus on some of the more consumption -oriented sectors such as consumer discretionary, technology stocks as well, in china. but for us, the key is to focus on areas which has strategic importance with chinese authorities. let's not forget this is an election year so the companies which are industrial-led or manufacturing-led tend to be more sensitive to rhetoric from the u.s. like recently we heard biden imposing tariffs for ev companies and energy companies. these areas will be more impacted which is why we focus more on domestic consumption companies.

we believe they will be more resilient in a year where there are elections going on in the u.s. haidi: audrey, one of the sort of challenges for china and the outlook going forward hinges on what happens with the property sector, like you mentioned. what are your expectations? we are hearing regulators might meet with the banks, perhaps there might be a direct buying of these unsold homes by the local governments. would that measure restore confidence not just in property, but in all edges and industries and companies that rely on it? audrey: certainly, i think it would be probably moving into a more interventionist phase by the government thinking of measures to up the market directly. it would boost sentiment in china.

certainly, it would be less expensive than what we see in developing markets today. but really what monitor its rantings. if you look at earnings expectations in china, the street has readily revised down chinese expectations from 15% to 16% earlier this year to 10% at this point in time. we have yet to see any stabilization in earnings. there will be one key important indicator to watch. annabelle: we have actually got a terminal chat, taking a look at the moves we are seeing in japanese equities, ones that track chinese assets. we are seeing a run-up in those. it's an interesting dynamics, because on the flipside, with all of the interest and exuberance around japanese equities, we have seen ets and that track those in china trading above their net

asset valuation of months ago. seems like, as you say, there is a flow being directed towards chinese equities now and more of an understanding that perhaps now is a good entry point for mainland stocks. but how much does that risk, the run-up we have seen in japanese markets, in turn? audrey: this is one unit that investors can access the proxy to china without investing in china. for example, european -- mucus is one of the trend to accept the trip -- european companies are trying to access the china recovery. without being impacted by certain rhetoric in the u.s. this is one area investors want to play. without necessarily china risk. it is certainly one area for

investors to be looking at as well. haidi: always great to chat with you, audrey goh is head of asset allocation at standard chartered wealth management. you can get a roundup of all the stories you need to know to get your day going on today's edition of "daybreak." bloomberg subscribers can go to dayb on their terminals. it is also available on the bloomberg anywhere app. you can customize the settings as well, so you can only get the stories on the industries and assets that you care about. this is bloomberg. this is bloomberg. ♪ discover our newest resort, sandals st. vincent and the grenadines now open. visit sandals.com or call 1-800-sandals

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annabelle: china's government is said to be planning a meeting friday morning with banks and regulators to discuss the property market. sources say the agenda includes a proposal to clear excess housing inventory. for more, we are joined by our china correspondent. seems like a coordinated push, they want to end this property slump. what do we know about the meeting taking place this morning? guest: is supposed to be a huge meeting, the list of invitees ranges from senior officials in the, housing industry to the local government and financial regulators and that goes to underscore how important this meeting is. they are looking to discuss ways to buy back excess inventory in the market. the scope bloomberg broke last friday. the question is how big at a scale that will be and how the government will finance it because earlier attempts to do this at a smaller scale in 2023 met with little success, very little take-up rate from banks.

their balance sheets are being squeezed by nonperforming loans and the fact that they are being repeatedly asked to extend cheap credit to developers and borrowers. defend local government debt has reached 56 percent of gdp last year, so the big questions there about how sustainable this is. then this afternoon we are expecting the state council to hold a press briefing. the pboc is expected to be there along with other ministries. sources say they could be discussing expanding this wide list of and developers who -- developers and the code access funding for projects that were previously disqualified, as well . haidi: it is china domestic activity data day as well. what do you expect to see with property investment indicators? minmin: property remains the biggest drag on the economy so we expect investments to extend the in april, although

government-led investment could help counter that and already we are starting to see a steady drumbeat of pro-growth signals in recent weeks with city after city announcing a rollback of homebuying caps coupled with the potential meeting this morning to buy back excess housing in the market. of course we will not see the effects of that in the april reading just yet, but we do see pmi data for construction hitting a new high this year in april. that suggests we are feeling the trickle-down effects of last year's trillion yuan bond issuance going to infrastructure investments. that will help fix infrastructure investment numbers stay resilient this april. there is fixed asset investment, industrial production and retail sales that we will be tracking. annabelle: we saw a pickup in the economy in the first quarter, will that extend when we get these numbers?

minmin: yes, the economists are expecting us to pull out of this lull in the economy after the numbers in march. retail sales are what we need to look out for a closely because the question is whether we will see a balanced recovery in the economy or that to track recovery with industrial production still racing ahead of consumption. if you look at sales of automobiles and housing appliances, demand remains tepid despite the government program, the rollout of this trade-in program with one-time subsidies to encourage businesses and households to upgrade their equipment. mixed results of their. we expect industrial production to take the lead, with analysts expecting a one percentage point increase from march on the back of strong exports in april. bloomberg haidi: 's china correspondent minmin low ahead of the big data dump today. chinese president xi jinping and russian president vladimir putin pledged to intensify cooperation against what they described as

washington's containment policies. china executive editor jean-luc joins us from beijing. this is the closely-watched meeting given we already know this is a self-described friendship without limitations. how much closer have they gotten? john: i think over the course of the war in ukraine, it has been a real test for this relationship and so far, the relationship has come through it in a fairly strong position. this meeting between president xi and putin was the 40th time they have met since xi jinping came to power so there is a long history of relationships, there are factors underlying it that push them together. you underlined the issues they both have with the united states. that is going to continue. if the war in ukraine has not stopped it, i think it means the relationship is strong enough that it will take a lot to do real how well they get along --

de rail how well they get along. annabelle: we have moscow's trade with china hitting a record. but we aren't seeing the same in reverse. will that cause any sort of friction, do you think? john: chinese valuing of russian exports, i think that has continued to be strong. there is demand for energy and commodities in china. the issue is how much china will exports to russia. washington has made it clear it finds objectionable chinese supplies of dual use technology is going to russia, things that could have a civilian use, but also a military use. anything china does that could be seen as helping to power of the war effort in ukraine will cause real objections in washington. that has caused threats of

sanctions against chinese banks and other chinese corporations and so that is partly why the chinese stance on that situation has been so cautious. we have seen from secretary blinken saying there is no evidence china is supplying weapons. i think vladimir putin would like to see china do more in terms of exporting supplies of technology and equipment. whether or not happens i we have to wait and see. annabelle: that was our greater china senior executive editor john in beijing. the international monetary fund has criticized that biden administration's moves to aggressively raise tariffs on chinese goods. it says the u.s. economy would benefit more from open trade that imf has been stepping up criticism of its biggest and most influential shareholder over surging debt levels, trade restrictions, in the currency impact of tide fed policy.

more to come on "daybreak: asia ." this is bloomberg. ♪

do you want to close out? should i? normally i'd hold. but... taking the gains is smart here, right? feel more confident with stock ratings from j.p. morgan analysts in the chase app. when you've got a decision to make... the answer is j.p. morgan wealth management. annabelle: jp morgan ceo jamie dimon says he is more worried about inflation than markets appeared to be. speaking at the global markets conference in paris, he says significant price pressures are still influencing the u.s. economy, supporting the case for rates to stay higher-for-longer.

>> we have had turbulence and we have had good health in the markets for a while. they are predicting a soft landing and you see that in the stock prices which are high, credit spreads are kind of low, markets are wide open. that is all good. i could point to a lot of times in history where that was true in the next year it was untrue. so we will see. i don't pay as much attention to monthly numbers as most people do. >> so what do you think the future is for inflation? >> i am worried about it. we have had a great fiscal deficits. inflation may not go away the way people expect. i look at the future and a lot of the things we look at our inflationary -- the greening of the economy, the restructuring of trade, fiscal deficits. there are a lot of inflationary forces in front of us that may keep it higher than people expect. the surprise would be rates higher, inflation is higher. that could stall growth. geopolitics is another issue that could be determinative in how our economy does next year and we are just not going to know. >> you think it is 50-50 whether

the fed cuts or hikes next time around? >> i don't pay much attention to that. the fed will have to follow the data. i don't know what the data is going to say. i think they are doing the right thing to be patient right now and see what is going to happen. they may not know for a couple of months. >> but no big correction. if you don't pay that, much attention to it that means you aren't worried? >> that i am worried. rates are going higher -- my view is that whenever the world is pricing in for a soft landing, i think it is probably half that. the chance of something going wrong is higher than people

think. >> in the u.s., or globally in the u.s., but that could affect globally, yes. what would that mean for markets? >> they would be done. why is the market not pricing that in? >> a lot of happy talk. >> where does the happy talk come from? >> low rates, central banks reduced rates. the geopolitical things, trying not to cause problems. the future is not predictable like that. i am a student of history. i watch all the inflection points. i go back to when i was a stockbroker, with a booming market of 1972 and the collapse of 1974. the healthy market in 1980 and the collapse of 1982 the 1990 real estate crash. almost all of them or not predicted the year before. a look at these factors. as a company we can prepare for all of these and reassure our clients regardless, but -- >> what do you think of is the main stress right now? geopolitics is not priced in. is it distress? is that something going on that you are worried about, or multiple factors at the same time? >> geopolitics could create the main stress. in terms of oil and gas prices or trade alliances, but i think the surprise would be higher

rates, because inflation didn't go down. if inflation has been stubborn, maybe it balances out next year. i think it may have nothing to do with what you are seeing today. that to me, is the surprise. if you have higher rates and god forbid, stagflation you will see stress in real estate and leverage companies and private credit and things like that. haidi: jp morgan ceo jamie dimon there speaking to bloomberg's francine lacqua take a look at how we are setting up to the start of trading in european futures at the moment. quite a bit of downside. we are following the muted session we are seeing friday with asian stocks dropping there as well. ending the longest her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit... unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...”

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annabelle: m breaking data points from singapore this morning. we have the singapore non-oil domestic exports contracting more than expected. a drop of 9.3% on the year. the estimate had been a .9 percent. we are also seeing the month-on-month reading, a rise but not as much as predicted by economists. 7.6% gain on the month. . the estimate had been for a 9.2%. electronics, the outlook perhaps not brighter, but we are seeing growth there of 3.3%. that reverses the situation in the month prior when we had a contraction of 9.4% on the year. certainly, it tells us perhaps there are some risks facing their new leader there, lawrence wong, who has become the new

leader of the city-state earlier this week, the fourth one since singapore gained independence, haidi. haidi: yeah, the risks really playing out when it comes to this friday session, belle, a lot of risk aversion after a week of exuberance and reaction to that inflation print. we heard from a trio of fed speakers delivering the message of caution, saying perhaps mores needs to be done, at rates need to state where they are for longer. that is playing out in terms of the pullback in major markets from austria to japan to south korea. we are seeing losses of as much as 0.8%. for both of the japanese markets and here in australia, we are only seeing leadership in energy and some of the miners, commodities-related plays. . we have come off the short squeeze for copper, near record highs for broader communities from precious metals to industrial commodities. a lot of that will be at stake once we get industrial

production and investment data out of china later today. kiwi stocks looking pretty muted as well. energy players, oil set to eke out a weekly gain as we end the week. . speaking of china data, we are watching what progress has been made on the policy announcement for the beleaguered property sector. prices fell for 10 straight months on a month-to-month basis in china. earlier this week, we had the potential for a proposal being flagged that they might be talking about purchases of unsold homes by local governments, we know today that chinese regulators will be talking about aid extensions to property developers with the big banks and the state, belle. annabelle: and we have seen stress hitting developers in different ways, one of the ones we are focusing on today is country garden. it begins a major legal battle in the hong kong court against a creditor seeking the company's liquidation. for more, let's bring in

reporter lorretta chen. two questions. firstly we were just discussing there's a chance that can get kicked down the road today anyways. where are you seeing the chance, and more broadly, how do we get country garden into this position? >>? >> the winding up petition was filed against the company by a hong kong listed company, king board. it was accusing country garden of not paying a loan. that is a single creditor. in that sense, country garden has a good case to make that the creditor's's claim doesn't represent the broader interest of its creditor group which involves a lot of state-owned banks and also a lot of institutional investors so that. is a good case it can make. in the past month we have seen updates from the company talking about progress with restructuring. it appointed a legal advisor last month, and is urging

patience from investors for further progress in the restructuring plan. it doesn't have a concrete plan yet but some of the company emphasized it is working on it and in recent news, the company managed to avoid onshore default by paying a local bond coupon. it is also giving signals to its investors that it has a willingness to pay and get recovery to its investors. haidi: what about the speculation of more support, it has sent china and other junk bonds to the highest in recent years, but they are still at heavily distress levels. does the policy rumors we have heard, would that really be a source of ongoing confidence if they were to materialize? lorretta: i think the current policy really tries to address that problem of extra supply in china's real estate market. the government is stepping up, trying to acquire these projects

on sale by developers. we are still waiting to see what type of projects it is actually acquiring, is it really just from these private companies that are the most distressed, or is it just targeting the local government entities, the soes that it is trying to say first? the priority here really matters. haidi: our bond and loan reporter lorretta chen there. other corporate stories we are following bloomberg has learned that the top hsbc holder is weighing options to reduce its 8% stake. our sources tell us options include further sales were divesting to a sovereign wealth fund in the middle east. we are told that being on board members are visiting the golf, but it is unclear whether stocks have started. jd.com's u.s. listed shares closed higher after a 7% rise in first-quarter revenue. sales rose to $36 million, above the average analyst estimate.

jd/prices and ramped up shopping perks to boost sales amid weak consumer sentiment in china. adrs went higher after revenue grew at the slowest pace in the year shares ended up just 1% in the fourth quarter with net income coming in stronger than projected thanks to cost. the result suggests baidu is still struggling to translate the advantage of ai interview revenue. this software maker is in talks to acquire a startup. the move would expand snowflake schiphol efforts to offer generative ai capability. it had been rushing to partner with or acquire startups working in that field. annabelle: cisco says it is benefiting from its infrastructure spending and it could hit $1 million in orders from hyperscale and others of the standard technology. the cfo told us about the company's revenue outlook.

'this is our fiscal third quarter that we announced. normally i wouldn't guide until we got to the fourth quarter earnings call. we acquired's blog. we've got it closed mid-quarter and analysts are trying to adjust what does the combined company look like. so we wanted to get ahead of that without doing a fulsome guide, just get information out there so they can narrow down their expectation for fiscal year 2025. i think it's a first view of where it is going. i think the encouraging thing for us is we have worked through the supply chain disruptions that we had that caused us to develop a huge backlog and then we are able to clear, as we got the components in, we were able to clear the backlog, revenue spiked and know we are having to compare to this compare points, for the year on years are a little difficult to decipher what is happening in the business. we spend time trying to unpack that for investors yesterday and

we will do more of that with the buy side later. just giving them enough insight so the models will start to converge on what we think are the right numbers. >> sound like you aren't saying no but making the point that it is early. in 2025, who knows what will happen? let's talk about inventory. sounds like you turned a corner when it comes to supply chain disruptions. what does it say about corporate spending? people look that the report and sent dark green shoots back. where is that coming from, what kind of customers are receiving that demand from? >> was interesting for us, we have splunk added in for just half a quarter. so actually orders were flat over all, which is an increment from where it has been. customers have been really trying to implement the huge amount of product we shipped out to them in three consecutive quarters. we see that ending. we see them getting through

implementing of the product we shipped to them by the end of this fiscal quarter, the end of july. as that happens, we are already starting to seek demand return and product orders flat within that overall the flood, growth of security orders, growth and collaboration orders, most importantly, growth in data center networking orders which has been a headwind for some time, and growth in campus switching. that surprised people that we are seeing growth in that since there is more vacant office space than there has never been, how can campus switching be growing? i think it's an encouraging sign. >> so some tailwinds there. we have to talk about ai, a detail that caught people's eyes if you have $1 billion of infrastructure orders in sight the question is, is that for a particular line of business? where will that ending actually be taking place within cisco? >> that is not a new data point, it is in the back em: if.

you think how these ai models get trained, and used, it is in the back-end. a lot of that going to the big, large public clouds you would expect and the tier two ai infrastructure buildout, that is what drives that. haidi: the cisco ceo sticking with the bloomberg's katie greifeld. more to come on "daybreak: asia." this is bloomberg. ♪

@next guest runs one of haidi: india's largest i.t. services firms haidi: , it runs more than 200 delivery centers with 10,000 clients using their software and products. in australia they work with cricket austria on their digital transformation strategies. joining us for an exclusive interview is acl tech ceo, c vijayakumar. glad to have you with us. i want to set up generally. we are seeing pressure on the tech sector. share prices have been under pressure. do you see upside given the concerns over pressure on margins? guest: thank you heidi cool for

having me in this interview. given the broader macro issues, hcl technologies has had a great year. we had a great year in fy '23. fy 24 we grew up 5% in the u.s. dollar terms which is probably the highest growth rate in the industry. in this environment, what matters is how relevant are your propositions to your clients. we won about 9.8 billion dollars of net new business during the year. it's a good mix of trying to drive more efficiently for our customers, and do some amount of transformational work, continuing investments in cloud, cybersecurity, data, sap. those are the areas where clients continue to expand in this environment. haidi: the resin was obviously a big win. what are you looking at in terms of what are the deals potentially out there and how

aggressive is the competition? c vijayakumar:the rise and is a landmark deal, it really a business partnership trying to deliver management services for the verizon end clients which probably most of the global five hundred companies are the verizon network customers. we are the service provider to enable them. we have a very robust pipeline. it has quite a number of large deals which are driving more efficiency for our clients, and it also has some high priority areas where clients are investing, like data is a very big scene. especially with everybody trying to do whatever best out of the possible with generative ai. data becomes a very important component which they need to get right. so there is a lot of investment to streamline the data

infrastructure, data engineering and things like that. haidi: i will get two ai agonist second, but are you seeing a minute will pick in discretionary i.t. spending, that has been weakness in tax and financial services? c vijayakumar: generally, discretionary spend has been soft. i think a lot of industry verticals, the clients are looking for economic signals which give them more confidence or more optimism to invest in new programs. having said that, there are always areas like cybersecurity, or data. these are high priority areas for clients. irrespective of what the macro environment is. we are trying to focus our attention to the most critical areas which are relevant for the

clients. haidi: glad you mentioned ai because we were talking earlier, about half of the overall spend is obviously on the cheap side at the moment, as we progress further into the technology, that is expected to shift meaningfully to services infrastructure. what are the conversations and the preparedness you are having? c vijayakumar: we believe generative ai and all the developments in ai, it's a big inflection point for the tech services industry. we need to embrace it more proactively, and really see what is out of the possible in terms of how much efficient we can be, how much more we can deliver with the same. come up with innovative ways in which generative ai has come -- can help clients. we have over 300 use cases in which we have been working with clients across financial services, retailers, manufacturing companies, telecom companies. so these are early days. some very good, interesting projects. the next step of that is to kale this to an enterprise level and that brings attention to the

underlying data infrastructure for a lot of clients. haidi: where are you seeing sort of the bright spots graphically when it comes to that level of investment? c vijayakumar: for us, north america continues to be a very bright spot. financial services we grew 33% roughly last year. europe is a little bit soft, we think that anz, australia and asean markets will pick up fast because we have some marquee clients that we service across different verticals. i see a momentum growing in asia. haidi: yes, and he said, the guidance for acl tech has been stronger that spheres, doesn't many or more -- stronger than its peers. does that many are more emboldened when it comes to hiring? c vijayakumar: we had an increased headcount last year while most of the industry would headcount. we going to need to be optimistic. of course, we delivered high growth compared to the industry

last year, so we remain optimistic because focusing on the right areas which are most relevant to continue growing. haidi: do you have a number in mind for this year? c vijayakumar: our hiring numbers are dependent on the quarterly demand that we see, but i for cs being a net -- but i foresee us being a net hirer this year. haidi: it is widely assumed that the election would not be a slamdunk for prime minister modi. what do you expect to see? c vijayakumar: there is attention on india from all the big global enterprises. initially, for the last decade or so, they were looking at india as the biggest island base which continues to be true, india offers the richest and scale of talent that most companies need for their various initiatives for, but india is also a very big market, a lot of

big clients looking at expanding their manufacturing in india. so, large global customers are looking at india and much more holistically than ever before. and i think the policies need to continue to enable that capital. haidi: markets and share markets have gone there investors. the economy continues to be the bright spot, almost regardless of what the political makeup is. what, to you, is the most important thing the country needs to progress and reach its full potential? c vijayakumar: if the continuity of the reforms and all of the push towards more and more manufacturing getting done out of india. i think that needs to continue to make india more broad-based. today we are very dominant in services. i think there is a big opportunity to expand. haidi: on that really great to have you with us here in sydney, c vijayakumar, ceo at acl tech.

you can catch us live and see our press interviews with our interactive tv function. that is tv . you can dive into the securities and the bloomberg functions we talk about. and you can join in on the conversation as well by sending us instant messages during our shows. it's for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪ when you own a small business every second counts. 120 seconds to add the finishing touches. 900 seconds to arrange the displays. if you're short on time for marketing constant contact's powerful tools can help. you can automate email

and sms messages so customers get the right message at the right time. save time marketing with constant contact. because all it takes is 30 seconds to make someone's day. get started today at constantcontact.com. helping the small stand tall. annabelle: the runaway success

of tsmc shares may hit a roadblock as holding limits are forcing investors to search for the next best blue chip in ai. charlotte, seems almost unfairly that the success of tsmc ends up constraining it. charlotte: tsmc is a strong leader in technology and for this big ai trend and even after the over 40% rally this year, it's valuation is still pedestrian, 20 times compared to the other global semi players who are trading at 40 times. a lot of the fun space limitations in terms of how much they can hold of a single stock. the european commission's regulatory framework for mutual funds. you look at active managers, the

are holding tsmc as their top holding. so there is not magic they can add on top of their current weighting. also, tsmc is around base percent to 10% of weighting in many benchmarks. it sounds a bit unfair. tsmc has been putting our technical hurdle for how much upset it can go in the near term. haidi: the hong kong stock gauge may be adding health care and electronics names in its quarterly review. what are the expectations? charlotte: there has been a lot of interest to find out what the stocks are that might be added to the hong kong benchmark index. at the moment, the top candidates we are hearing from analyst byd electronics, they handstand component maker the supplies to apple and qad. and health care names are others. this comes as broader efforts

from the benchmark compile it to make it more diversified and more representative of the city's stock market. last time it didn't make any additions to the gauge, but this time, analysts don't expect any deletions from the benchmark. will find out the results after the market today and the changes will take effect on june 11. m our asia equities reporter, charlotte yang there with the details. let's look at futures trading across the u.s. and taiwan and china on a day of big news flow as well as a big data dump day for chinese markets. u.s. futures looking muted at this point as the rethinking of rate-cut expectations is pouring cold water on easing expectations from three fed speakers including the cleveland fed loretta mester. we have seen a record high end

record high across many markets. china futures looking positive, 0.25% higher. expecting a mixed bag on activity data with weakness in consumption. but, of course, a lot of hope that we could see more policy measures being announced. annabelle: yes, certainly a big day for china investors. what we are tracking so far in the session, downside pressure, through. i just had to look at the trading volumes and we are thinner than we would typically be at this point in the session, but pretty much every sector right now is in the red given concern resurfacing around the outlook for inflation. not just the china story today for markets. that is it for "daybreak: asia." coverage continues as we look ahead to the start of trade in hong kong, shanghai and shenzhen. ♪

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