haidi: welcome to "daybreak: australia." the markets have just come online. paul: we're counting down to measure -- asia's major trading. stocks and bonds facing pressure after another wew= -- weak sale. the fed is no rush to cute rates. haidi: salesforce slowing. ai going the other direction and a sign towards a shift towards software technologies. paul: bhp walking away from its bid for anglo american leaving the ceo to look elsewhere for growth in copper. we are going to be taking a close look at bhp shares when we get trading underway here in

sydney and one hour. at up that we have futures looking a little softer in negative territory to the tune of two thirds of 1%. nikkei futures also looking fairly soft. we saw a pretty bad day for aussie and jgb yesterday. after australia's april cpi beat. new zealand going to be one to watch. the market currently trading soffer -- softer by .5%. it is budget day today. new zealand expected to announce weak revenue, higher borrowing, and a return to surplus probably pushed out until 2028. we will have all of our answers with regards to the new zealand buzz it in just under three hours. haidi: this is a market that is really searching for answers at the moment. particularly as to where the fed will go next. perhaps unsurprisingly are getting eight weak -- not a great deal of enthusiasm in the u.s. session overnight. s&p futures continuing to look

sluggish. tech is also seeing a further drag. it really was that slide in bonds pulling stocks down with another weak sale of treasuries raising concerns of the funding the u.s. deficit will drive yields up at a time when the fed is in no rush to cut rates. 44 billion dollars sold in seven year notes. that is above the pre-auction level. of course we had two other offerings a day ago that saw pretty lackluster demand. these bond sales are seeing growing influence if you will over other asset classes including the sentiment when it comes to stock trading. watching crude as well. saudi arabia set to launch a $10 billion aramco sale as well on sunday we had m&a action. and of course we are still weighing the impact of geopolitical risk and looking ahead to the opec-plus meeting. paul: let's get insight now from

belita ong. the beige book we got out of the u.s. of the earlier is not too bad. slight modest expansion for u.s. growth and we saw consumer confidence rising in may. that was the first rise we saw they are in four months. we have yields rising antistress for patients. do you think we are going to see another repricing on rates? belita: the fed has been pretty constant in its attitude about when and how it will lower interest rates in the market expectations have moved all over the place. as to the timing and the extent of rate cuts, i think there is so much uncertainty because the fed has not decided what it is going to do and when. that is because given the circumstances today there is no reason to expect them to cut rates.

inflation is not where they want it to be any sticky parts of inflation, which are in insurance premiums and rents, are likely not very sensitive to rate cuts or rate increases. so i think for now we just watch and see what the data brings. paul: what do you anticipate around the sticky areas inflation that you mention? can that be brought under control without inflicting too much pain on the economy? belita: frankly i am very uncertain about what the future will bring in terms of inflation and interest rates. part of me has held belief for a long time that regardless what the fed does on short rates long rates will have a tough time coming down. that is just because of the very expansionary fiscal policy of the treasury in the u.s. and other governments have conducted for decades.

at some points the interest rates will reflect the borrowing this across the developed world and perhaps we are beginning to see that. on top of that in the u.s. we still have a huge problem of regional banks having mortgages on their balance sheets that are problematic for them. that they cannot fund at a profit anymore. so at some point in the future if rates don't come down, they have to consolidate and clean up their balance sheets because their business is not viable anymore. so that will cause all sorts of demand for capital which brings back this whole issue of who is going to land and at what rates, especially in the long and regardless of what the fed does i think the prospect for long rates is murky at best. haidi: is this an environment where international becomes even more interesting? if you take a look at japan for example are there further legs

ahead for this rally? belita: we're still very optimistic about investment options in japan. even after the rallies we have seen last year and this year the japanese market is very cheap. as an example just a simple benchmark to look at, ev over emed at which is a much better benchmark to look at in japan because companies have so much cash on their balance sheets. we see something like 40 plus percent of companies under $3 billion with ev ebita of under six. private equity firms are doing private equity deals between 15 times and 20 times earnings. or actually ebita. so there is a huge gap between valuations in the japanese market and what private equity is willing to pay for it. at the same time you have enormous pressure from the tokyo stock exchange as well as the fsa to improve corporate governance among corporate managements.

and we are seeing a big change in that whole place. on top of that even though we are seeing changes that are very positive for staff valuations in japan, you still have the bulk of global equity managers still underweight japan. it is hard for me because we're so focused on japan to understand why exactly, but perhaps it is because japan has been such a bad place to invest for decades, probably for most of the careers of professionals in the market. but for us it is one of the best places to invest currently. haidi: would you also be, in a sense, front loading when it comes to korean assets? because there is the sense that korea can, in a lot of ways, replicate the success story japan has gotten to at this point. how do you position given that is a longer-term story, if we go along -- if we go by how long it has taken japan? belita: it has taken japan 10

years at this point since it started governance reform and encouraged shareholder activism. with korea i think it will take a long time as well. but the big problem in korea is that of taxes. heritage taxes are very high which discourages these families who own these large conglomerates from having a high stock price because it increases their tax burden when the main shareholder passes away. so there needs to be some dramatic changes in korea at which we believe have to come. but that just takes a long time. and with the recent elections it will probably take even longer. nonetheless we see companies in korea that are doing the right thing already. and so for stock pickers like us , there are very attractive options in korea but for the market as a whole i think we have to see several years of changes before it becomes a more attractive market for more people who just want to just invest in korea broadly. paul: one market i know you're

very bullish on and you're certainly not alone is india. do you feel that perhaps after the election if the modi government has returned with a slightly weaker majority, might you have to become a stock ticker there as well instead of a broad-based approach? belita: in india it is particularly important because of corruption. you have to really do your homework know the companies come understand the families that are sponsors of those countries and be sure they will treat you fairly. so there is that hurdle to overcome in india which is critical. right now for instance, we are at an unusual point in time because a lot of the domestic savers have these automatic savings accounts that increase monthly. went from nowhere basically to about $2 billion a month. the retail investors tend to be fairly indifferent to valuations.

so out of the blue small-cap india has gotten more expensive than large-cap so we are certainly taking profits where prices have risen we think well above fair value and investing in companies which are out-of-favor for some reason or other. right now they seem to be the larger cap companies. so we definitely do a lot of portfolio cleanup rebalancing between companies when valuations move around, which they do in india. but as you say, we are bullish like a lot of people and we remain bullish because the fundamental story in india is so strong. haidi: always great to chat with you. belita ong from dalton investments. we are hearing from sarah hunter, assistant governor of the reserve bank also -- of austria. she is speaking this morning at a conference about yesterday's hotter than expected inflation numbers. inflation picking up for a second consecutive month in

australian, really bolstering the case for the rba to stay higher for longer and reviving this chapter about potentially more tightening being needed. sarah hunter saying she broadly agrees with the treasury's inflation forecast, that when it comes to the cpi number we got is weak, it confirms the strength of a number of categories. utilities, insurance rents have been quite sticky. she says the rba believes which is growth is near its peak. some components of that wage growth is beginning to see softness, but the rba is being very watchable on wages and productivity. really acknowledging the pressure that comes from the cost-of-living crisis. sarah hunter, the assistant governor, saying some australian households are struggling and they will not be an immediate turnaround and household spending. but on the corporate side, lending business investment as a key driver of gdp growth has held up reasonably well. paul: we will be taking a closer look at currencies later.

we are watching the aussie dollar as sarah hunter speaks. still to come, the yen's persistent weakness going to be added to expectations of a boj rate hike. national austria bank is going to join us to share the outlook for fx markets later. first, we take a look at what is next for bhp after walking away from its anglo-american ambitions in what could've been the biggest mining deal in a decade. and we are going to leave you now with live pictures from iceland, pictures at the moment there. that is a volcano currently erupting. we've been watching this were a very long time. this is a coastal town of 3800 people. it was largely evacuated in december when things started happening in a geological sense. so we have got lava now shooting 165 feet into the sky. hat -- that fissure miles long there.

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haidi: the biggest mining deal in what would have been over a decade is no more. in fact choosing to walk away for bhp, i guess they will be

seeking copper opportunities elsewhere. this idea of having another extension that was rebuffed and i guess ultimately the structural issues they had with this deal with anglo american just never got sorted. paul: it ended as dramatically as it began. an hour before the deadline bhp said no more and walked away. would have been the biggest deal in a decade. leaves anglo in an interesting position. the ceo promised to deliver a turnaround plan. he is now going to have to make good on that. but the complexity around this deal seems to be what brought it undone. bhp wanted to spin off those south african assets. anglo not so keen on that. the law says that bhp cannot have another stab now for six months unless there is a rival bid. haidi: you wonder if rivals are breathing a sigh of relief or looking at the opportunity there to perhaps hover around a little more because this would have

created a commodities powerhouse that would have towered over competitors. it still comes at a time where despite the recent bit of a pullback and profit-taking when it comes to this copper rally, up about 25% almost this year, that long-term bull case is very much intact in terms of tighter supply, greater demand, even without the china recovery story. there is so much demand for copper assets and prices continue to go in one direction. this kind of decision to walk away by bhp instead of sweetening or changing its bid, it is a bit of a new reality for dealmaking. they are coming back to these discussions but clearly boards are not wanting to anger shareholders by going too far. paul: perhaps a little bit of caution. we saw anglo shares fall on the announcement of this. let's see how bhp when we get going at the top of the hour. haidi: some other headlines we are tracking, activist investor

nelson peltz has reportedly sold his entire disney stake according to cnbc. his fund management last month lost its bid to obtain disney board sheets -- seats. sources say saudi arabia set to launch a secondary offering of shares in oil giant saudi aramco that could raise over $10 billion. we are told the sale could happen as soon as sunday with informal interest all purity -- already being expressed. proceeds will diversify the saudi economy away from oil. conocophillips has agreed to buy marathon. the move expands their footprint in u.s. shale. it also extends a buying spree among major u.s. and oil gas layers. marathon surged following the news. bloomberg is learned sony music

is in talks to acquire queen's muted catalog which includes hits like bohemian rhapsody. sony is working with another investor on the purchase, which could total $1 billion. earlier this year sony acquired a half interest in michael jackson's catalog for at least $600 million. coming up in the next hour, our interview with the ceo of link asset management, a group that manages hong kong's first listed real estate investment trust. talking about their business strategy after the portfolio reported an earnings miss. much more to come on "daybreak: australia." this is bloomberg. ♪

paul: tesla has been having a tough year. layoffs have been mounting, its stock is cratering, and some

investors say it has a distracted leader in charge as elon musk manages five other firms. today's big take takes a closer look at musk's orbit and how his galaxy of companies stays afloat. dana hull joins us now from san francisco. so how does this elon musk workflow, organizational chart differ from what we might consider normal? dana: a typical company would have a clear organizational chart on its website. tesla and all his other companies don't have that. so we created a more fluid, ever shifting and shaping solar system would elon as the sun. i think it gives people a better representation of how musk operates and how his companies all kind of overlap and interact with each other. there are many people who play multiple roles, wear multiple hats, the same characters show up over and over again in terms

of investors and board members. but this is by no means definitive but it should give people a clear sense of who is surrounding elon and the constellation of the companies. haidi: some of these critiques of elon musk have been around for a while. that he is distracted and he has too much on his plate. i am sure a lot of his executive leadership would prefer him to be more focused. what inspired you and bloomberg to take on this project? i'm very intrigued by this graphic that we have on our screens. dana: sure. part of it came about because tesla is facing a very critical shareholder vote june 13, and they will be voting, again ona a pay package voters first approved for tesla in 2018. but between 2017 and now musk has two more companies. he bought twitter and started a brand-new ai company he is

raising billions of dollars for. so his influence and his empire continues to grow. the guy has a lot of ideas for companies. used to run two, that it was four, now it's six. there does not seem to be an end for his appetite for startups and doing a lot of things beyond tesla. haidi: our bloomberg senior reporter dana hull there. subscribers can read more on the terminal. it's also over at bloomberg.com. they are confident the automakers bet on growing u.s. demand for electric vehicles while still investing in hybrids. we spoke exclusively with him, who also gave us an update on hyundai's new georgia ev plant. >> well, we are still very confident and i was visiting our plant in savannah last week and i am happy to report that we will be able to produce three

months ahead of schedule. so, by october this year we will start producing are very popular ionic 5. so that's great. we're very confident. and as i have said many times, we continue to double down on our bet for electrification. we are happy to continue with that. your question about the hybrid, we have also seen that the evolution of ev sales in the industry, maybe not as fast as everybody expected, or as regulation would expect. and we have seen also that a number of consumers are waiting for maybe alternative fuel types beyond ice, like hybrids. that is why we've decided that in our plans in savannah we're going to produce also hybrid vehicles. this is going to imply an increase on investment, but we believe in this, and we are

happy to see the reaction of our dealers and stakeholders as we have announced that. >> by the way, great to see you as well. the inoic 5n hit the market, wowing a lot of people with the ice emulation and sporty performance. is that thing sold out already? what are the orders looking like for that? >> well, ioniq 5 is unbelievable. few know this like you, what this car can do. more than 640 horsepower. it just made it to the performance car of the year in the world car event that took place in new york in april. this is only after two years. i think this is one of the few cars that could raise even one of your motorcycles and beat you.

but i will leave that to an opportunity in the future. >> i look forward to it. the price tag continues to get higher as these cars gain popularity with consumers. obviously it has done well. this one costs north of $65,000. the genesis product is doing so well that you can take more rice there. do you see that power increasing even as it is falling for your competitors? jose: we really do see the power increasing. we really believe that the future is going to be electric. it's not a matter of if, but when. if you go to europe, there is a 20% mix of ev's. if you go to other regions like china, it is about 30%. we are stable in the u.s. at about 8%. but we continue to do very well. this year to date we have increased our sales of ev's by more than 50%. more than 50%. last year we double food isn't just fuel to live.

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♪ paul: time for mourning clothes ahead of the asia trading day. jp morgan chair and ceo jamie dimon says he expects problems to emerge in private credit a, especially as a retail clients gain access class. he says the industry has not been tested by bad markets yet which could expose the weakness of new products. >> stress tested. do people understand what i said about interest rates affecting with these things are worth? do they? and if the little lady finds out you can't get her money back, there may be disclosures saying this money is locked up for five years, but you know what, retail clients will circle the block and call their senators and congressmen, and there will

be hell to pay. paul: meanwhile, morgan stanley investment management is turning less bearish on chinese stocks. state support through share buybacks along with cheap valuations could help boost prices, according to one analyst. but he still questions as structural issues remain in the economy. goldman sachs sees the back of japan approaching qt with caution, saying a passive runoff by the boj would drop the pace of quantitative tightening of other major central banks. the estimate it could add up to five to 10 basis points on japan's 10 year bond yields per year, with swap spreads tightening by a smaller amount. haidi: alright, we are getting a commentary from the assistant governor of the rba sarah hunter, speaking in a fireside chat this morning. she talked about how household spending is not expected to bounce back quickly.

she is talking now about the labor market seeing signs of cooling down, she expects it will continue to so often. the rba is closely tracking other elements including the clean energy transition as well and that impact on the economy. clearly she has been thinking about the stagflation risk for the economy, saying the rba is always mindful of these, very focused on the cpi dynamics. it comes at the site is looking to stay higher-for-longer on yesterday's cpi numbers, the second month of acceleration for inflation pressures in the history of suggesting the rba has nothing to contend with as it goes into its june meeting, potentially higher-for-longer is the pitch. she did also talk about the struggle for a lot of house boats, the impact on wages and productivity with some components of wage growth starting to see some softening there as well. take a look at how we are setting up. it was a weak lead in the equity session. another session on wall street

dominated by the slide and bounds. another week auction contributing to the earlier lackluster demand in the sales we saw earlier in the week. it is starting to become one of the dominant themes for other asset classes, not just treasuries. new zealand, as we look at the budget, we are seeing some weaknesses there in cash trading. singapore and make a future looking like we will see a drop for the topix when we come online. that weakness being extended into the s&p futures and nasdaq futures as well. look at currencies. the dollar now rising the most since april. it's about inflation and the global debt supply weighing on prices and of course the commentary that continues when it comes to staying higher-for-longer for the fed. all of this is weighing on asian currencies, in particular, the yen. let's bring in our next guest.

we are watching that level for the jan that previously instigated suspected intervention, 157 .52 is where we are. we actually went past that two at 157 point 64. is there a sense that there is a line in the sand? are question of the day actually is, what happens if we go to 160 and pass? guest: 160 is the level where we saw suspected intervention, we should get confirmation of that at the end of the month when they publish the monthly balance sheet. no doubt the bank of japan was bad. i think the amount of intervention they conducted was pretty substantial, probably north of $50 billion. i suspect we are not too far off from another one, but we have to remember what is the source of this uptrend. 10-year yields have risen basis points in the last 10 days, and that have been the main driver of most of the dollar-yen volatility we have seen in the last couple of years even though those jgb yields have gone up

above one person. it's the level of treasury yields that seems to be dominating. unless and until we see some reversal there, or that we see the bank of japan stepping up whether it is the pace of quantitative tightening, or whether we see rises in the overnight rate that go beyond current market expectations, it's difficult to see a near term reversal of that trend. i think the warranty for broader asia is that the rate continues to rise, we have seen it in the pboc's fixing for the yuan which was yesterday. it is feeding back and has undermined the aussie dollar strength we saw yesterday on the back of cpi numbers. so the ripple effects from the continuing to weekend are pretty broad-based. haidi: that e.m. continues to weaken and the dollar continues to strengthen with the fed not in a hurry. i guess it goes to the question of how worried should

broader asia agree with the global impact of a fed that is not going to move anywhere towards easing anytime soon. ray: the implications of the fed not easing are profound. but we should remember that up until last week's that s&p global pmi and then early this week, we have had four or five weeks where u.s. economic data had been consistently surprising to the downside. and clear signs of a shift in relative economic performance away from the u.s. in favor of the rest of the world, particularly in europe. we saw the dollar under substantial pressure. we hope for the fed easing as early as q3 starting to ratchet higher. so it will not take much in terms of the incoming u.s. economic calendar if it reverts back to actually be economy is cooling, inflation is starting to moderate again, we could easily see that pendulum swing back or start to seat u.s.

treasury yields easing back and that could set off a renewed, modest, at least dollar depreciation cycle. at this stage i have not seen enough evidence of the data to say that we should be calling time on any prospect of the fed easing this year. paul: aside from the u.s. dollar, what about the other currency pairs, for example, the euro. you have seen the ecb perhaps cutting in june and then again in july, which we can't rule out, where do you see that pair heading? ray: at the moment we are still positive on the euro. that june cut is baked in. i wouldn't be confident that we would see follow-up cuts. the official view is that we will see a cut in june and then september and then at the end of the year. it's a bit more than markets are currently thinking about at the moment. so if jan weakness continues to be dominated by ongoing rises in treasury yields, you are probably expecting euro-yen to continue rising in that environment. it's a case of whether the

dollar goes, pretty much all currencies will go. so it's based for strong moves one way or the other. paul: we are seeing signs of the boj may be ready to tighten again. will that have more impact on intervention, and do you think the narrative is believable? ray: it is, we have seen a significant shift in the narrative coming out of boj governor ueda. the last meeting, he was pretty adamant that jan weakness is not having a detrimental effect as far as the inflation impact. that got a strong negative yen reaction from the fast forward and the narrative seems to have changed. we have heard from the deputy governor of the beginning of this week or late last week echoing similar comments. the boj is giving up possibly for a reduction in the pace of jgb buying as early as the june meeting which would set the market up for an actual rate rise of the short end.

maybe as soon as the july meeting. if that comes to pass, depending on what is happening on the u.s. yield and end of the spectrum, our forecasts have us closer to 150 and heading lower, but very much predicated on the fed still going to ease this year. the bank of japan may surprise with the rate at which it starts to normalize policy. haidi: it's hard to see anything going right going forward. for the yuan. but it may be the right thing for policymakers in terms of boosting exports. ray: at the same time,, they have been under pressure. they have been reasonably resistant to allowing the juan to weekend. -- that won so we can. it undermines their effectiveness in terms of competition for exports.

but they still have the view that is strategically a feel that their interest might be best served by demonstrating a commitment to their currency, thinking about greater internationalization of the currency. demonstrating commitment to stability, i think, suits them. at the think there are limits to how much they can resist the lure of a stronger u.s. dollar and a weaker yen, so those fixings will be very important in the coming days. paul: we will have a budget out of new zealand in a couple of hours. the quantitative easing is back above $.60, but we expect to see debt increasing on the government side. what is your outlook for the kiwi dollar? ray: the context of a broad dollar view, we are positive on the new zealand dollar. we don't think that the hawkish rhetoric that has come out of the rv and said last week in which the price people -- we are still reticent to believe that that could actually translate

into tighter policy. given that the state of the new zealand economy, it's not obvious that higher-for-longer rates or even a rate rise will be supportive, if it further drive the economy further into the ground. but the budget today may not be helpful to that cause. if we see a significant listening in policy, we will have to distinguish between the cyclical blowout in deficits as purely the result of decreasing economic activity than a result of fiscal impulse. if there is anything that suggests a significant fiscal impulse, markets will move on as far as tightening is concerned. the short term of that could be quantitative easing positive. but i am less convinced that it would sustain ongoing new zealand dollar strength. paul: reaction ahead of fx strategy from the bank of australia. ray is --rate atrial,

thank you so much for joining us. we are expecting a deficit of 5.7 billion dollars, a longer road to surplus. beyond that, tax cuts and inflation, what is that going to mean? ray has got a short-term upside for the kiwi dollar. haidi: it's difficult. we have a similar situation that developed nations are facing, the tension between fiscal and monetary where one undermines the other end it is at a time when cost-of-living pressures are pressuring governments and treasury departments. so the promised tax cuts to alleviate the cost of living pressures for households even as we see it conditions receding. the finance minister said the package will be fiscally neutral and will not add to inflation. it will be fully funded by savings and new revenue streams. but of course of the inflationary months that suppose is only the risk.

paul: and no return to surplus before the next election either. more to come on "daybreak: australia." to stay with thi bloomberg. ♪ tax rates or filing returns. avalarahhh ahhh

paul: the u.s. has again warned baking it in face consequences if chinese companies continue supplying russia with components for weapons used to

attack ukraine. this was on a visit to kiev, repeating that washington is open to further sanctions. >> the mood in the capital today is one of urgency in terms of doing everything they can to defend their country. i have been impressed by the brave men and women in the ukraine and the fact that they are committed to fighting for their freedom and doing everything they can to build an economy and a free and democratic country. i am here because the united states wants to be their partner in doing that. in addition to talking to them about sanctions, i have been able to talk to them about economic support and the ways we can make sure our allies and partners stand with the brave men and women of ukraine. >> you said yesterday on your tour in kyiv that an acceptable amount of weapons components are still getting into russia. there is a sentiment that sanctions are simply not working. as the treasury's point man on sanctions, does your trip confirm that?

>> my trip confirm that we need more to make sure sanctions continued to stop russia from getting the goods they need to build the weapons they want. we have charged them with trying to get around our sanctions and we are concerned russia is getting access to key component parts particularly from china and other countries that are allowing them to build these weapons. what i am here to do in kyiv is talk to counterparts about the new tools we are considering to try and go after the ability of the kremlin to do just that. fundamentally we can't do this alone in the united states, we need to do it with allies and partners and that is why i am heading to germany to talk to my german counterparts about the importance of us acting together to stop those components from getting to russia. >> well, we are looking forward to that speech, will you announce secondary sanctions against those responsible for those components getting into russian weapons. >> i will not preview any actions that we will take.

what i will say is we will talk about the fact that the united states and our allies and partners are going to be open to sanctioning any company or individuals that provide material support to russia's military industrial complex because we want to make sure russia does not have access to the goods they need to fight the war in ukraine. haidi: u.s. deputy treasury secretary speaking to bloomberg's joe mathieu. look at how u.s. futures are trading, this after another dismal session for treasuries, bonds falling and pushing yields close to the highest levels of the month. that final auction of the week reinforcing the broader trend of lackluster demand. we had two other weak sales earlier this week as well. so this trio of summer auctions is contributing to a broader sour mood not just across treasury markets, but across other asset classes as well. we are hearing from the atlanta president at the moment speaking

in a conversation at a q&a event, saying that the pastor this inflation will be bumpy, but the general trend is down. the path to percent inflation is not assured and the fed is vigilant. also saying that the job market is tight and not as tight and closer to 2020 conditions. last inflation breadth would add to confidence when it comes to a cut. referring to the fourth quarter, that may be the time when the fed can reduce rates, saying there is a need for patients, consumers are less sensitive to higher rates right now. more or less in line with the possibility of higher-for-longer, the need for more evidence and conviction in the data before the fed will move really in either direction. you can catch us live and see our past interviews in our interactive tv function, tv . you can also dive into the securities and the functions we talk about and also join in on the conversation as well by sending us instant messages during our shows. it's for bloomberg subscribers only.

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♪♪ sandals jamaica sale is now on! with rates from $199 per person per night. visit sandals.com or call 1-800-sandals haidi: take a look at that latest stories were following in terms of earnings. hp shares after quarterly revenue topped analyst estimates including its first increase in pc sales in two years.

revenue from the computer unit increased 3% of the second quarter due to a rise in commercial sales, while consumer sales continued to decline. shares of this company slumped after the software maker said sales with stalled to the lowest in history. it sees revenue raising 8% in the current period, fueling concerns about its ability to stay relevant as the industry moves forward towards artificial intelligence. that shift is also reflected in c3.ai's stronger than forecast, almost $400 billion in 2025, higher than the average estimate of $360 million. c3.ai has been introducing products with generative ai that can create text and images in response to a user's prompts. paul: and ai will be a key focus of the tech summit getting underway in singapore where annabelle droulers is.

what is on the agenda? annabelle: paul, it's actually just getting underway this morning, we have that, coming into its second day. it bills itself as a major tech event for asia. singapore we know is really a city that is pushing to become the silicon valley of asia. we are seeing a very concerted government push behind that. we have heard from singapore's president. we will be hearing from the prime minister as well this morning. that only the attendees reflect that. we have the likes of ibm, meta, anthropic and openai all here. but people have been speaking to our from the start of community. it's been interesting to understand more about what is the funding a landscape looking like right now? i am hearing it's very, very accessible at this point in time particularly if you have ai attached to your name. also hearing because that there might be a bubble, may be a bit too much hype and too many promises as well.

haidi: lots of good conversations today, belle. annabelle: yes, that's right, that start up focus and also keep these companies that are pre-ipo. one of those is databricks. we will be speaking to the co-founder in the next hour. it's a cloud-based platform with a lot of different technicalities but it helps the likes of shand, conde nast, big pharma giants, many customers working with large data sets, helps them build machine learning models. that conversation is coming up in the last hour. that company is valued at $43 billion and we will get an update on their listing plans. this other company will be talking about regulatory scrutiny in the u.s. from the likes of major media companies, netflix and telcos and more, with singapore's senior minister of state.

paul: bloomberg's annabelle droulers there live from the asia tech summit in singapore. these are the stocks we will be watching. trade opens in korea, japan and australia at the top of the hour. bhp is in focus after the aussie miner abandoned its bid for anglo american. sony is in talks to acquire queen's music catalog which could total of $1 billion. and keep an eye on australian agricultural and others as canberra announced that these exports to china are said a result. asian carrie is also in focus after american airlines cut its guidance. haidi: when it comes to commodities, oil in particular, this is the picture.

new york crude is flat, just under $80 a barrel. retreating on wednesday on broader risk-off sentiment offsetting the heightened tensions that we continue to watch in the middle east, this before the opec-plus supplier meeting on sunday. we see a bit of a decline, also some studying. commodities more broadly following bonds and stocks in the u.s., at lower. that disappointing cell of treasuries is reverberating across asset classes including commodities. also watching copper. the historic squeeze on the new york copper futures. iron ore is one to watch as well, seeing a bit of weakness there, but the advance we saw from the lowest close in more than a week is reflecting the optimism on gradual progress being made in china's property market and some of the support measures we are seeing from major cities there. coming up in the next hour, our exclusive interview with the ceo of link asset management, talking strategy, portfolio reporting, and earnings miss. meantime, the market opens in sydney, so obama and 2q are next. this is bloomberg. ♪

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haidi: this is "daybreak: asia." we are counting down to asia's major markets opens as markets come online in the next two minutes. and surprisingly a pretty weak follow-through in asia. seeing a string of weeks treasury auction start to affect the sentiment across other asset classes, be it commodities and equities. yeah paul: , a really rough day for aussie bonds yesterday. the beta book from the u.s. showed a slight to modest positive outlook for the economy going forward. but, yeah, we still have bets for rate cuts this year. interesting to