>> welcome to daybreak australia. i'm haidi stroud-watts. we are coming down to asia's major market opens. >> i'm annabelle droulers. traders weighing mixed economic data and hawkish leaning fed commentary for clues on the rate outlook. wall street's returns dominated by selloff in bonds. haidi: economists expecting cpi to take lower while still facing pressure. haidi: toyota shareholders urged to revolt over the company's plan to reelect the chairman of toyota. haidi: a lot to contend with particularly in australia as we look ahead to cpi numbers. pressure when it comes to the rba. a look towards the possibility of easing sooner rather than later. we have expectations when it comes to retail as well as consumer sentiment, looking

softer as well. when it comes to how we are setting up for the inflation data in sydney, down by 6/10 of 1%. big drop in treasuries that mostly dominated the u.s. session. u.s. markets and investors came back after the memorial day long weekend. kiwi stocks holding steady, 1/10 of 1% higher ahead of the announcement of the new government budget. the finance minister will be delivering the first budget on thursday. they are posting bigger budget deficits as well as more levels of borrowing. that's one to watch out for when it comes to trading in new zealand. nikkei futures looking tepid at this point. china futures off by about 1 -- 1/10 of 1%. annabelle: you mention those moves that came through in the bond space. that's where we saw most of the action. 10 year yield up eight basis

points. u.s. stocks were little change. u.s. futures online this morning. steady right now. it's that countdown to the fed's preferred inflation gauge at the end of the week. ahead of that, the u.s. consumer confidence figures out as well. those rose in may for the first time in four months. news about business conditions, the labor market. they are becoming less negative even though recession expectations increased as well. put that against the backdrop of these fed moves and we are still hearing more hawkish commentary coming through from fed officials that the bank of minneapolis president saying yes, the stance is restrictive. there are still chances of further increases from here. take a listen. >> i've been asked, would we take potential interest rate increases off the table. i don't think anybody has formally taken them off the table, even me. i say that we could sit here for

as long as necessary until we get convinced that inflation is sustainably going back down to our 2% target. i'm not ruling out potential interest rate increases from here. sitting where we are is a more likely outcome. if we get surprised by the data, we would do what we have to do. annabelle: let's get more insights with our first guest, sarah malik. we want to point out he is one of the most hawkish on the fomc. is this something that you have it all in your thinking as well? that we still have an outside chance of a rate hike. are we in a pattern where we stay higher for longer? saira: we are in a pattern for higher for longer. whether we get another hike will depend on whether inflation reacts seller's again. recent cpi and ppi data has come in in line so inflation is showing signs of no longer accelerating. with pce data later this week, that comes in line with

consensus. that would be good news for the markets. portfolio management, given how the markets have riven -- risen. we need to wait for inflation to get to a more moderate level for a longer time before we see those first-rate cuts. there is a small chance that rate hikes could be back on the table if inflation rates re-accelerate again. haidi: one of the key questions out of that comic in the u.s. economy continued to grow when you have that inflationary environment? you've also got rate headwinds. saira: that's the main question for investors. can the economy withstand higher interest rates and inflation? they've been fairly narrow, driven by artificial intelligence with nvidia wrapping up earnings season strongly last week. also earnings in the economy. very strong in the u.s. with 80% of companies beating consensus. economic data has been mixed on the manufacturing side.

consumer confidence coming in strong. all of that is showing us that the economy so far can grow through these higher rates. whether that will be where we are at the ending is still the question that's on the table. haidi: given that uncertainty in terms of how much growth and the pace of growth, does that mean you are better off looking at international markets that are seeing strong returns? the likes of japan. even with all the exuberance over the japanese equity rally, there are a lot of global portfolios that are still underweight. saira: international markets have been promising this year. currency and inflation data out of the u.s.. if the u.s. moves to rate cuts and the economy starts to slow, that would be favorable for international markets. japan has benefited from reopening and reflation. strong consumer and gdp growth.

mild inflation for japan. japan can continue to perform well. global portfolio managers have been underweight the japanese equity markets. china showing signs of a resurgence. i would like to see more stability in the chinese property market before knowing if this is going to be a long-term recovery for china at this point. haidi: do you prefer x china? saira: you cannot ignore china given its weight in the emerging markets benchmark. areas such as mexico which benefit from on shoring with the u.s., i think there's other emerging markets which have longer-term structural trade tailwinds such as mexico. also indonesia with its younger population benefiting because of the issues china is happening. that having. green shoots in china. other areas showing china showing signs of recovery.

haidi: you mentioned the issue of trade. how much attention are you playing -- paying to geopolitical concerns? particularly after we've had more and more noise about the discontent from western trading partners toward china. >> i think definitely the election is going to be a big issue this year. 77 countries going to the polls. 60% of gdp. that's a heightened year for elections. u.s. markets tend to perform well during an election year which is what we are seeing. in terms of trade, we will have to see how the elections shake out and whether -- what happens with tariffs and trade going forward. the clear beneficiary remains countries that are closer to the u.s. like mexico and infrastructure should continue to benefit. that's a key call for us because we think the u.s. will bring more manufacturing back home. not only because of trade issues but also since the pandemic, we won our supply chains closer to

home. that's a trend we are seeing. annabelle: infrastructure is interesting. people are looking at it from the ai play as well, given power needs. what are you seeing in the ai space in particular? which areas are you seeking to benefit from? saira: infrastructure benefits from multiple tailwinds. not only manufacturing. also renewable energy. we need to upgrade our grids. artificial intelligence. infrastructure. benefits from all of those. it's also economically resilient. the pieces within infrastructure our utilities and waste management. during a recession, we still turn on our lights. infrastructure is a resilient play. artificial intelligence is a beneficiary for the u.s. but also the world. with japan and its aging demographics, artificial intelligence could boost productivity across sectors. ai could bring us more rapid to

the market products. ai is going to be something that benefits many companies and sectors around the world. annabelle: just looking at other points in your notes when it comes to how you can position around a slowdown, private credit is something you are looking at favorably. saira: it's an area that is more resilient. we are looking on our portfolios. being more defensive as markets continue to rise. areas like infrastructure, companies that continuously increase their dividends, private credit in the alternative space. also not funding those from technology which is very strong going forward. ai is a real trend. large technology companies like nvidia don't look extremely expensive at this point. nvidia trading at a discount to the semiconductor space. haidi: always great to chat with

you about those investment ideas. you can get around up with the stories you need to know to get your day going. subscribers can find that on the mobile in the bloomberg anywhere at. customize those settings for the news and assets that matter most to you. this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh

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haidi: israeli tanks have reached the center of profith -- rafah. residence reporting clashes in the center of town. it comes on the back of that horrific scenes that have come from the refugee camp. international criticism is reaching a fever pitch. this is an operation that is still going ahead. >> what we are seeing is confirmation of what prime minister net yahoo! and the israeli government said the whole time. they must go in here. there is still groups of militants that need to be taken out. it's probably where the hostages are. that's where they six backed military leadership is. there's also weapons from egypt as well which they try to lock

up. that's going to continue. we saw that terrible airstrike on sunday that killed 45 people including women and children. it's an interesting discussion going on about that. the u.s. has said it didn't cross the redline which was surprising given it was a missile strike in a heavily tent city. there's also reports coming out of israel. it's a real fog of war stuff. they are saying they used small munitions and that strike and potentially hidden arms depot or ammunition dump. it was a secondary explosion that caused that. what the truth is, we won't know until there's an investigation. when you have 1.4 million people in a very small area and you are conducting fighting, these terrible things are going to happen. i don't think israel. until this is looted. it's just as likely that the militants or leadership will melt away and turn up somewhere else. it's whack-a-mole stuff that israel is conducting. that's why the world is so

frustrated. it's not over. annabelle: yeah. how do you know that hamas is an issue -- finished? when will they be done here? michael: the military head seems to be the real brains of the operation. seems to be -- outside of being quite murderous, incredibly talented and has a great handle on how israel and its politics work. he's operated this particularly well. leaving aside the tens of thousands of people being killed which is tragic, for hamas that doesn't matter. all it does is produce global pressure which is exactly what hamas wants. even if they were to kill or capture him, this trauma that

the palestinian people have been through is going to radicalize another generation. whether it's a new organization that hasn't been formed yet, until you have a political social -- solution, it won't end. for israel, if they captured or killed him, they would declare that mission accomplished. he's obviously in a string talented militant in very bad ways obviously. he's the brains of the operation. that would be what they would call victory. short of that, it would be to clear the militants from that area. they are more than likely to pop up elsewhere. israel cannot most declare victory after they've been through rafah but i don't think it will conclude. haidi: that complicates the postwar image of what gaza and this area is going to look like, right? there's been talk of sending blue helmets in. the u.n. says this is wildly complicated in terms of what

they can rebuild. >> it's going to take a huge amount of money and require arab nations being in there. any blue helmets or israeli forces or whoever are going to be targeted by local people there and reasonably enough. is there territory. outsiders have leveled it. there will be a lot of radicalization that goes on there. it's going to need saudi money and gulf states providing troops to help rebuild. until israel gets on board with the prospect of a palestinian state, that's unlikely to happen. israel being onboard is unlikely to happen which is the conundrum that we find ourselves in today. haidi: there's more to come here on daybreak us really a. this is bloomberg. ♪

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annabelle: china's biggest cities including shanghai, shenzhen have eased down payments for -- requirements for home down payments and mortgages. it follows china's most forceful wreck -- rescue package with 41 billion dollars in funding to buy unsold homes. for more, let's bring in the shanghai bureau chief. it remains to be seen whether this loosening is going to tempt buyers back in. what are the signals and what's the sense on that so far? >> that showed how worried how -- how worried the chinese government is about the property sector and also the economy. two weeks ago, china just announced 300 billion yuan worth of central bank funding to help local governments buy unsold houses. 300 billion yuan's seems like a lot of money.

it's just a drop in the bucket compared with the sheer size of the inventory which was anything between five to six to 8 trillion yuan. it's not enough. the key is to revive public confidence in the housing market . you need to get the households to buy the unsold properties. so that's why. the announcement came out last night that china will cut the down payment and mortgage rates for people in the housing market in shanghai and other megacities in china. it remains to be seen how effective the measures will be. the question is, the people are not confident about their income. use unemployment remains

stubbornly high. the official rate is about 15%. xi jinping had a study session last night to emphasize the need to boost employment and urge to create more jobs in key industries. haidi: this is about lifting broader sentiment and injecting animal spirits back into the broader economy. we've done a recent survey of sunna -- some economists looking at china. have the recent policy support measures made a meaningful difference when it comes to their outlook? >> we did a flash survey this week. the impact most of the economy sees from the housing policy is pretty limited. the estimate is only like 0.1 to

0.4 percentage points which is very small. the reality is, people in china, after the years of runaway growth, it's in a consolidation time. the financial route -- news report recently released a report recently. growth of savings in china's banking system. the amount of total savings and banks has risen sharply over the past few years. a lot of that is locked in fixed rate accounts. that shows you a lack of confidence about income. that's the biggest headache the government is facing. getting the consumer to spend again. haidi: the shanghai bureau chief

there. we are staying with ego data. cpi edging lower but some factors could still be pushing prices in a different direction. our economics reporter joins us for now. some of these same elements could continue to create pressure. i wonder how important this print is for the rba in its deliberations. >> it's really important. usually monthly inflation data is new. the rba doesn't put a lot of right on it. this is the most latest price information that they will receive before their june meeting, june 17 and 18th. so they definitely do want to see if prices continue to head in the direction that they want or not. so it will heavily be debated or discussed in the june meeting. we will also get gdp report next

week. so these two will be critical in the meeting. annabelle: what is the trajectory of inflation? in new zealand, there's a big issue about housing. that's a nontradable. is that a similar situation in australia where you have those components of the inflation basket that are not edging lower? swati: that's right. we do have those components like services, insurance, education costs. they've been really sticky. the rba has repeatedly said that it's a sore point for them as well. which is why the rba forecast actually shows inflation is remaining around this 3.2 3.3% until the end of 2025. that's different from the government forecast. the government is expecting inflation will fall back into the target this year because

some of the measures they have taken such as reducing electricity prices and rent assistance. so the government is trying to work on that services part of inflation. the rba forecast came before the government announced these measures in the budget. we are yet to see those effects, those measures will kick in from july. so it will not be in today's data. but that is something the rba and the government will both keep an eye on. haidi: how worried would they be about the consumer? that's been in the doldrums for some time now. swati: yes. it's a big problem for the rba. they want to engineer a soft landing. they want to ensure that they are able to preserve their employment gains as they bring prices down. the consumer is the weakest link at the moment. consumer sentiment is really week. retail sales data yesterday which was very weak as well. that's a worry for them.

but i think when the rba governor talks about consumer spending or spending on the economy, she is still saying that overall demand continues to exceed the economy's capacity to supply. so they are not worried as yet. but i think if we start to see loan defaults and things like that, or if it starts leading to a recession in the economy because household consumption is such a huge part of australia's economy, that's when they will be really worried. haidi: cpi numbers out a little bit later.

we're with bridget, whose husband won't be home for months and whose daughter is due any day. we're with mike, who's leaving home to protect his family, and yours. we're with all service-members and their families

who need community, connection, and maybe a bit of magic. are you with them? learn more at uso.org today. annabelle: you are watching daybreak australia.

taking a look at one of the currency pairs in focus. that is how the yen is trading against the british pound. we are at a level we have not seen going back 16 years. what is driving that comes down to the interest rate differentials and expectations around where rates go from here. you have the japanese yen weaker. the boj staying relatively dovish even though we have seen the path to further hikes. you have the view that is developing that u.k. interest rates are going to stay higher than most others in the g10 countries. the boe set to lag behind its peers when it comes to easing. what we are hearing is even another hike from the boj is not going to do much to dissuade traders from picking nearly any other major currency over the yen. we are tracking the euro versus the yen around 170. the dollar versus the yen and that has been a keenly watched pair given you at the 157 level.

160 perhaps seen as a line in the sand for the boj where we see any possible intervention. haidi: we can get more thoughts in terms of the policy gap and the inflation outlook in general. going to head back to the ubs investment conference underway in hong kong. our next guest is one of their speakers at the event and a co-recipient of the 2018 nobel prize. he is a professor at boston college. he previously served as chief economist at the world bank. as we talk about rate divergence and how a lot of these global economies and central banks are at the mercy of what the fed does not, i did want to start with you when it comes to your interpretation of what the inflation and growth picture is and the fine balance of risks for the u.s. at the moment. paul: there is one fact i think is helpful for interpreting what is going on.

the role inflation numbers from month-to-month have a strong seasonal pattern. it is very low at the end of the year. the monthly inflation rate is much higher in january, february and march. even though they try to do seasonal adjustment to take out those effects, there is a tendency to look every january, february, march and say we are losing the fight against inflation and people are confusing the seasonals with the underlying trend. we are past that now. what you are going to see is more recognition inflation in the united states continues to come down. . maybe a little bit slower than people would like. there is every reason to be confident we will get to where we need to go. annabelle: are you also confident a soft landing can be -- a number of other economy struggling with the same conundrum, the strength of the

consumer, retain gains in the labor market but not have a growth run away to a point where structural inflation become such an issue. paul: each country is going to be somewhat different. the united states has benefited from a consent since we need to do a significant amount of public investment. public investment since covid has been providing a real boost. stimulus to payments then public investment have been providing a boost to the economy. the odds of a soft landing are very high inthe u.s. we seem to have inflation expectations that are pretty well anchored. we have this blip associated with the war in ukraine. i think the odds of the u.s. having a soft landing are good. in other countries you have to look at those specifics and see how they line up or differ relative to the u.s. annabelle:annabelle: what are you thinking in terms of the u.s. consumer?

we have been looking -- for instance we sell confidence rising for the first time in four months but do you think we are overstating the health of the u.s. consumer given there is a large part of the population that is struggling with these rate increases? >> we may be overstating a little bit the health of the consumer. the consumers are not the ones who are driving the economy. it is investment and the government is the key actor. for strategic reasons, for climate change reasons, there is every reason to expect this to continue. annabelle: what about the trade piece -- haidi: what about the trade piece? you have spoken at length about the complex nature of trade policy and how free-trade is not always benefit all. we come to an interesting juncture where industrial policy, trade policy is seeing a lot of the things you say are necessary like sanctions, like

tariffs, export controls and subsidies. do you think these parallel moves we are seeing from the e.u., china and the u.s. are on the right track? paul: i think they are inevitable. covid made every country realize how vulnerable it was to outsourced offshore supply of things like mask. this possibility of a conflict with china has made the united states and europe worried about the supply of chips t their is going to be an inevitable\]\\ production activities. beyond that as i have said and as you mentioned, there is a growing recognition that we need to do something to make sure economic growth benefits all numbers of a society. a commitment to free-trade did not have that characteristic should we always said we could

supplement it with some other measure to make sure nobody gets left behind but we never did that to we either have to get serious about finding ways to provide growth and hope for all members of the u.s. economy and every economy and if that means pulling back to some extent on the commitment to free trade, i think it is inevitable we will do that. annabelle: you have talked about how there should be less focus on the trade of goods as opposed to focus on the trade of ideas. is it a bit of a conundrum at this point when you take a look at tech like semiconductors, ai where it is the trade of both? >> the thing to remember was the deal that was done between the united states and japan during the 70's and 80's when japan was producing so many cars of higher quality than u.s. cars. what the u.s. said is it is good

for u.s. consumers to have well-made cars using the knowledge the japanese manufacturers have but we want those cars to be made inside the united states. you can use mechanisms like direct foreign investment to import the knowledge that a country or a firm offshore has developed but you can still source the goods, to the production within your own borders and this is what we are doing with chips right now. we are investing in intel we are investing in the taiwanese manufacturers to set up production in the united states. annabelle: it seems like there is also a trade-off at play because you have the focus on re-shoring or building out sovereign capacity in these areas but you also have greater scrutiny we are seeing of deals where you have got nippon steel's proposed takeover of u.s. steel that is being possibly blocked at this point. paul: some of this is politics

and i think it is a hard distinction to convey to the voters which is we don't care who the owners of a corporation are. it is unclear who exactly owns of these companies anyways. what we care about is where the manufacturing takes place. i think it is too easy for rhetoric to become like a hostility to foreigners and we should avoid that. we benefit a great deal from foreign investment and the kind of takeover that was proposed in this case and we should not have resisted that. annabelle: you mentioned that focus on intel and chipmakers and there is -- that leads me to think about ai and where we are at in that story. in some of your most interesting commentary, it has been on ai. your views on thinking around and being the next big

revolution could be a little bit misplaced. paul: i think we have to remember there was this solid consensus only a couple years ago cryptocurrencies were going to change everything and then suddenly that consensus goes away. nobody even asks why were we so confident and it blew up. right now there is way too much confidence about the future trajectory of ai. what is clear is ai has made real progress. you can do things with it now you could not do five years ago. when people project to this forward, they risk of making a serious mistake. we have benefited from scaling up compute and ingesting a whole lot of data. scaling up compute is easy. it is just more machines, more chips. we are not going to have enough data. we are going to get through this burst of ingestion of data.

there is not enough data to keep the rate of progress going that everybody has seen recently. this is showing up with autonomous vehicles. this was the killer application for ai. cars that would drive themselves. but we are finding is we don't have enough data about those rare events that caused the autonomous systems to misbehave and kill people. the rapid progress recently should not be extrapolated into comparable progress going forward. things are going to slow down a lot. we are also experiencing a lot of hype. the typical bubble hype where people are trying to cash in on the latest trend. i promise you when we talk in two years we are going to look back and say it was a bubble. we overestimated where it was going. here is the new thing. haidi: hopefully it will not be two years before we speak to you again. i do wonder whether part of the froth where you say the bubble

has been extraordinarily loose, the monetary policy framework over the past two years. on that, when it comes to what the fed does and the restriction of more u.s. capitol as rates have changed direction, do you think that is going to have a massive impact when it comes to the flow of capital to other parts of the world, to emerging markets? paul: i think it is a good thing here to be sure and acknowledge how little we know as economists, anybody knows. for example when we saw this burst of inflation caused by the war and food prices, energy prices, most everybody thought -- all of us thought the fed would have to cause an increase in unemployment to bring inflation down. we were wrong about that. we need to admit we don't always know what is going on. the big uncertainty right now is where will real rates -- the fed

funds rate minus the inflation rate. where will that settle down? we got used over the last decade or two to extremely low rates. that may have been an anomaly. it was the tail end of this long process of disinflation that started with paul volcker. it may be we are going back to a more normal period with real rates that are positive. i will be good in some ways. it will reduce the risks of these speculative bubbles. that will cause some major readjustments because people have largely been investing on the assumption we are going to go back to zero real rates. right now we just don't know. once everybody -- the inflation is done, we are going to be steady as you go, we don't know what fed fund rate minus the inflation rate, we don't know whether that number is going to be.

annabelle: i suppose that goes to the longer-term structural nature of what these price pressures look like. do you think there is a sense as long as the fed stays higher for longer they are sucking capital away from other markets, from emerging markets? paul: i think that is probably not the right way to think about it. the fed -- the thing they need to be most clear about they have not been clear about is how fast do we want inflation to come down. if we stipulate we will inflation to go down lower, there is still a question should we be happy with a process where this happens gradually over time or do we need to get there right away? the fed has not been clear about this. my argument has been we have seen continuous decreases in inflation so there is no reason to be more aggressive and risk causing a recession. the fed should say as long as

the fed is coming down, we are happy. they should say we are happy and we need to start unwinding some of the interest rate increases we know are not going to be sustained. wherever the fed funds rate stabilizes, it is going to be at a level lower than where we are right now. annabelle: that was paul romer, professor at boston college. we will have more on mberg daybreak australia. ♪

annabelle: time is running out on bhp's ambitious $49 billion takeover plan. the two sides remain at odds over the aussie giants come look at a transaction structure ahead of wednesday deadlines. we will get more with our commodity editor. this has been a structure of the deal and the two sides are still yet to come to terms on it. >> the main problem is over bhp's requirement anglo spinoff majority stakes in south african minors. anglo argues that is going to create too much risk for its own shareholders which are going to end up owning the shares in those miners according to

bloomberg's reporting on both sides of the deal. they are struggling to find a resolution. anglo either when a change to the structure or they want additional compensation for their own shareholders. it is unclear if they are going to get to a resolution before the deadline which is 5:00 p.m. in london today. it could be a situation where bhp will have to apply for an extension with the u.k. regulatory authorities. it is unclear if anglo would agree to that. if you look at the share price at the moment it is 14% below the value implied by bhp's latest offer which suggests market does not think the current proposal is going to get there and bhp may have to sweeten the offer somehow.

haidi: in the meantime, we seek copper resuming gains. in the long-term, the case for copper a strong. is there a chance anglo could wait. in couple of years there may be more competition after a restructure. >> as you identified copper as the main reason behind this deal. it is extremely important to the energy transition should it is used in wind turbines, solar panels and energy storm -- energy storage grids which are going to need massive up rates to cope with a lot more renewables. that is the main reason the hp wants -- the reason bhp wants anglo. anglo actually has its own plan to restructure and that involves spinning off its platinum business and exiting diamond mining and coal. this is a good -- this is good

timing for bhp given where anglo's share price is at. the fact anglo has strong roots in south africa and employs a lot of people, the fact this is happening before the south african election potentially complicates things a little more. we will -- it will be interesting to see whether we get another extension and whether bhp wants it enough they will be prepared to change the structure. annabelle: we will continue to monitor that story -- haidi: we will continue to monitor that story. we have to talk about t osha speaking about drama tension to elect a chairman. coming under pressure against two leading proxy advisory firms which have advice shareholders to vote against the founding family heir.

it is always fascinating, the board room dramas. this is in part why we are seeing optimism toward improvement in governance in japanese companies. what are the specifics of the situation here? danny: two leading proxy advisory firms targeting the air to the company -- the heir to the company. this boils down to issues that have flared up over the past year or reemerged. certification issues have dogged someone like toyota and the complaints around these have all happen under his watch as tenure , as ceo. this is a rebuke to the toyota board and himself. when it comes to the shareholder meeting some of these are largely undramatic affairs.

with the grip and control the top shareholders have, we are not likely to see much change. this is sending a signal in particular when there are issues that do arise and in this case for toyota over certification issues and the wider company strategy. annabelle: what is the outcome? what is the most likely scenario you are looking at for the vote? danny: ultimately looking to see just how much dissent there is among shareholders who may be following these proxy advisory firms. last year there was an uptick in dissent against the reelection of certain directors. it remains to be seen just how much more there is. with this wider trend of seeing more accountability and demanding more accountability on these japanese corporate boards. . that remains to be seen.

haidi: our asia transport reporter danny lee. this is bloomberg. ♪ the all new godaddy airo helps you get your business online in minutes with the power of ai... ...with a perfect name, a great logo,

and a beautiful website. just start with a domain, a few clicks, and you're in business. make now the future at godaddy.com/airo thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh haidi: let's take a look at some of the top corporate stories. bid has -- byd has unveiled a

new hybrid powertrain able to travel to thousand limiters without recharging or refueling. some of the automaker hybrids could cover the distance from new york to miami or munich to madrid on a single charge and a full tank. official chinese data suggesting apple's iphone sales down spac in april with shipments jumping 52% from a year ago levels. sales first showed stabilization in march after steep declines the first two months of the year. apple and chinese resellers have been cutting prices since the beginning of 2024. annabelle: we can be checking some of those big or key apple suppliers open under the next hour what we. are tracking over the next couple of hours is the aussie inflation data. that is one of the highlights on the data docket this morning. . we are expecting cpi to have edged in april.

fairly steady so far. a bit of weakness for the aussie session japanese futures come a bit of upside perhaps. very little direction coming through from the wall street session. a lot of the action was in the bond space tracking the pound versus the yen given we are at levels we have not seen in 16 years. lots of big interviews coming up in the hours ahead. we will be live from the investor conference in singapore speaking to the head of. the south asia markets. and the head of emerging-market economics joins us as well. more ahead. this is bloomberg. ♪ (♪♪)

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>> this is daybreak: asia. another station in a row where we've. not much through coming through for the wall street session, but asian stocks looking perhaps a trend to the downside. heidi: most of the moves across the bomb market. -- the bond market. that is going to be a key piece of data for the rba as it heads into the mid june meeting. we are expecting the hawkish hold to be capped, but closely watching the price numbers from today. annabelle: we are trained keenly to any inflation data. we have the preferred u.s. inflation gauge from the fed coming later this week. there is the open we are tracking for japan. the yield gap has been putting downside pressure on the japanese yen, trading north