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 see if they will

be repriced. haidi: fed governor raphael bostic saying the fed will start looking at cutting, but they need to see further disinflation and some elements they are seeing are still quite concerning. so again, the messaging is that they are not in a hurry. they want to see more. not going to be something that gives joy to the markets. the nikkei is off by 1% right off the bat. weakness across the topics -- topix. with the levels we are looking at, and perhaps now the question, as is our question of the day, is what happens if we get to 160 on the yen? will lucian of the risk of intervention as well? weakness across the board. but the first couple of minutes-of-in korea, the tech earnings overnight, the legs of

hp were quite positive and we could see some follow-through in the asian session with tech and other related names. the kospi seeing some underperformance, though not quite as steep as the levels we are seeing elsewhere. paul: we just opened in australia as well. staying open here. the market is kind of flat. but bhp has began trading, seeing weakness, off 0.3% after bhp walked away from its bid to purchase anglo american. bhp shares of retreating a little bit in the early going. elsewhere we have got trading open for u.s. debt, the 10 year at 4.62. yields advanced after a fairly weak auction of the beige book, forecasting slight to moderate growth in the u.s. economy. a little bit of strength for the aussie dollar as well.

haidi: let's get more with garfield reynolds who leads our markets live asia coverage. secondly for japan, but more broadly, are we getting to the point where rising yields are starting to create risk for the equities rally? garfield: yes, that is clearly what is happening. in the initial moves higher in the recent path up for treasury yields, equities seem to be mostly -- the calculation was that higher yields are part of a stronger economy, a stronger economy is good for earnings. nvidia earnings came and went and they were very good, and nvidia rallied. the problem was the that he had what was a very narrow equity rally with the mag 7, now it is almost only nvidia that is gaining, or you can be sure it is gaining, and that is also starting to have an impact.

so the calculation assumes to be, unless you are something like nvidia where you have extraordinary case for gains, then you are under pressure. paul: we saw japan yields slipping as well, and we have the yen back in focus again, nudging back towards the level where we think we saw intervention last time. it's the question of the day, right, what happens if we get to 160 and is the boj going to do something first? garfield: well, they really are trending now, 160 should be a week or two away at most. could get closer if u.s. data tonight and then friday night comes in hot, that could really ramp up expectations for a hawkish fed at next month's meeting. so yen weakness is on the table. and on the one hand, the yen decline, the increase in the dollar-yen rate, has taken --

has been slow. japanese authorities have made it clear of the main trigger for them is too rapid depreciation. so that would argue against them intervening. then again, the apparent intervention at the end of last month came in at 160.17 which was just 0.3 shy of the lowest back in 1990. so it's a significant psychological level along with the round figure of 160. if it gets there, it would be hard to see them just walk away and not do anything, and we don't have a boj meeting for a couple of weeks yet. so i suppose the boj could adjust bond purchases down. they certainly face a lot of pressure to normally policy. but fx traders will definitely be nervous about the potential for intervention, we could see

sudden moves. even if people think it is coming. considering the last time that apparently happened was in the u.s. session when there was an impulse for the yen to we can anyway, -- i mentioned those risky data releases tonight and tomorrow night -- if those coming softer than expected, you see the u.s. dollar weakening, you would think there would be the temptation for the japanese ministry of finance to say, ok, perfect chance to knock it down. we saw some shorts reinitiated over the last couple weeks so they could try to squeeze them. either way, we are looking for the potential for some turmoil in the japanese yen. paul: alright, garfield reynolds who leads our markets live asia coverage, thank you. bhp is continuing to slip in the early going in australia, now off by about two thirds of 1%. this is going on after they decided against making an offer

for anglo american and is now walking away from what would have been the biggest mining deal in more than a decade. managing editor for energy and commodities in asia for bloomberg joins us now. clara, let's get to the anglo side of the equation in a moment, but first, for bhp, this was going to be a fast way to get some copper assets. what do they do now? clara: they have time on their hands. they got so far but they couldn't go further without making concessions about structure and price. i think shareholders were a bit disappointed perhaps that they got so close to this big deal and couldn't make it happen, but at the same time, a lot of release among people we have spoken to that they didn't overpay. if you remember, mining companies have a poor track record when it comes to big acquisitions, they tend to get excited and destroy a lot of value, so the restraint should be encouraging.

bhp has come out and said it needs copper so badly that it would go ahead with this extremely complex transaction. now we need to see what they do in the next six months and when anglo comes back into play, what happens then. haidi: how precarious is anglo's positioning at the moment and how much pressure is there of them to deliver on this restructuring plan? does that mean rivals are likely to sweep in? clara: i think we will see a pause in the fighting at anglo. bhp obviously has to stay away for six months. but anglo have a self- health plan to carry out, a difficult plan. they have deals to carry out that don't have buyers. the the beer dam in the business, for example, to revolve the issue of anglo platinum, to sell those assets, not very easy to sell and certainly not with obvious

buyers. it's going to take time. they are in a precarious position where they need to show progress, but it will be difficult. if they don't show enough progress, you can be sure that every single one of the large mining companies will be looking at them. and if they show progress, they will become a copper and iron ore-focused company which in itself will become a lot more attractive. haidi: we are seeing the return for deals after years on the sidelines. does the fact that bhp chose to walk away rather than continue to sweeten the deal, does not reflect may be a new degree of caution when it comes to how they deal with shareholder reaction? clara: that is certainly what the management at bhp would like to projects. and i think that is what will be encouraging some shareholders today. as you said in the 10 years ago, there was a huge amount of value destruction in this race to catch up with production needed for china.

we went too far but in times of greenfield and in terms of acquisitions. i think today, what we are trying to assess it, and perhaps this deal is a bit of a hint, is can they this time around with the energy transition and the demand we are seeing down the road, can they be more restrained? at the moment the signal is yes, but it is early days managing editor for energy and commodities in asia, clara ferreira marques there. still ahead, we are at the asia tech summit in singapore where industry leaders are gathering. annabelle droulers is that the event. what is in store? annabelle: really great crop of interviews coming up, kicking off with the first one. it will be with one of the cofounders of databricks. databricks is a cloud-based platform and it works with large data sets and also helps companies build their own machine language models. we will be speaking with that

company this hour. pre-ipo stage, valued north of $40 billion. we also have interviews with the u.s. fcc talking about tech regulatory scrutiny in the u.s. of the likes of big media, and telcos and more. plus, we will be talking with the singapore senior men a startups state. a nice lineup this morning. . paul: thanks, belle. coming up next we will speak with kwok lung hongchoy, link asset management ceo about their assets in hong kong and the chinese mainland. this is bloomberg. ♪ 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

just stop calling each other rock stars. and using workday to put finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars. oooh. data driven insights, and large language models. oh, that's so rock roll. it is, right. he gets it. yeah.

haidi: link asset management which runs a hong kong-listed real estate investment trust reported a jump in revenue, of the net property income fell short of analyst expectations. let's talk about this with the executive director and ceo, kwok lung hongchoy, who joins us in the studio. great to talk with you. george, what were the biggest challenges during this period? george: there is a lot of micro

headwinds. obviously retail market- recovery has been slower in hong kong and china. but we have been lucky to have the assets in australia and singapore, both those assets have done really well. we have also managed our capital and hedging and balance sheets well enough to protect ourselves against an interest rate increase. haidi: hong kong retail occupancy was interesting. a record high of 98% in march. do you see retail headwinds coming from shenzhen competition, and what are the strategies to try to maintain the share? george: the shenzen leakage has been headlined in the media and also a lot of the analysts coverage. we think that it is manageable for us, mostly because we have community shopping centers,

people come for a necessity. so the portfolio itself has been resilient. i think the big picture for hong kong, apart from people going to china, the government has not reversed the change in policy to allow people in shenzen, for example, to come on the multiple-visit visa. until that policy comes back to where we were before 2018 when we had a peak in retail and tourist spending, then that will take a while for recovery to come. haidi: can you give us your views on i guess what you have seen in terms of this go north trend? we are seeing people heading more towards guangdong province and spending their money there. has that had a big impact on hong kong business and retail? george: it is part of hong kong becoming part of the greater bay

area. it is our desire for the government and the region to integrate more and for people to travel and become more porous. it has been a little bit of one way, us going up versus people coming down. so that is something we need to encourage the government to change. otherwise, this is a longtime development that will continue. as the owner of shopping centers, we need to make sure it continues. the shopping center needs to be interesting with the right tenant mix and shoppers will continue to come. i think that is a strategy that we have continued over the last many years and will continue to protect us with a very high occupancy with a lot of tenant demand. paul: have you done anything to reposition yourself in that regard? i know you recently bought china

vanke a'smal in shanghai. would you be willing to take advantage of more opportunities particularly as a number of developers engage in necessary fire sales? george: the portfolio remix has continued. we can today to look at ways to recycle capital and also look at interesting assets to acquire. what i mean by interesting is that they have to come at the right price. obviously we are demanding high return given funding costs have gone up to an extent that something like vanke plaza will come along and we are quick to react. we are sitting on a very strong balance sheet relative to a lot of our competitors. we have a team able to deploy and integrate the assets into our portfolio very quickly. so we stand ready to look at different opportunities. and we are. not just in china, but across the region as well.

paul: in terms of having funding to take advantage of those opportunities, you have a pretty low debt ratio, 19.5%. if you were to see a reduction in interest rates, how would that impact your appetite for borrowing? or if rates increased, how would that hurt your growth? george: we are at a stage where we are talking about higher-for-longer. so there is stability in the financial market. the outlook is that at some point in time, rates will come down and that is helpful to our enterprise and helpful for us when we look at the cost of capital in our investments. so in the meantime, we are standing at a very competitive situation. we have a very low average interest rate. funding wise, because of the issue we did last year, that helped us to have a lot of liquidity, allowing us to be

able to withstand what has been quite a challenging market for a lot of property owners, especially in the space which are reits occupied. haidi: do you expect that you have feet when it comes to how positive occupancy is an retail growth and rental growth more generally, do you expect more challenges from here? george: well, we have almost fully let assets across all the different property types we have whether it is the shopping center, office, or the centers we own. what we would be mindful of is obviously, tenants who decide to move on, the tastes of shoppers changing, tenants not doing so well that they have to move out. like in the past year, 616 new

leases signed in hong kong. out of those, over one-third are new. our teams continue to be very active in engaging with potential tenants to make sure that they are wanting to come and lease our space, long lying. paul: george hongchoy, director and ceo of link asset management, thank you for joining us in our studio in hong kong. you can watch this live and see our past interviews on our interactive tv function, tv . there, you can also dive into any of the securities and bloomberg functions that we talk about. you can also become part of the conversation and send us instant messages during our shows. this is for bloomberg subscribers only. you can find it at tv . this is bloomberg. ♪

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paul: the top israeli official thinks israel's war against her mask it will continue until the end of the year. the governments comes as the u.s. says of fresh cease-fire deal has been offered. bloomberg's michael mckee joins us with more on this. the end of the year, patience is running thin with israel's remaining allies. can it hold out for that long? michael: you can imagine how isolated israel would be if that's the case but truthfully that sounds like a realistic assessment. the focus on rafah now, the southern city of gaza. what is happening is hamas militants are turning up in other places that israel has already been through because of these tunnel complexes, they have the ability to move with the civilian population. so it's not just going to be that they go to rafah and this is done. i think this is probably more likely a more realistic

scenario. and for prime minister netanyahu, this is the sort of thing he was after as well because the longer the war goes on, the longer he is in power, the longer of a chance he has two built his standing with the israeli public which is not good at the moment. there is confluence there. from the u.s. side, they probably didn't like hearing that and they are pushing hard for a hostage deal with israel has signed off on. so it comes down to what happens with her musket on that side. i think we will see protracted fighting. haidi: these cease-fire talks have really gone nowhere to this point. in the meantime, there is an interesting forum happening with xi jinping needing leaders of egypt, bahrain, tunisia and the uae. clearly this conflict will be at the top of the agenda. what do we expect? because we have seen china and ukraine occasionally float their world vision of what a cease fire resolution might look like.

michael: with ukraine, i think china is just too closely aligned with russia to have much standing there, but they do have potential in the middle east. part of the problem with the connection with israel for the u.s. is the legacy stuff from the postcolonial period, all of these wars that have taken place. china comes in with a fresh slate and potentially a lot of investment on offer. economic relations. it doesn't get warmed up about human rights issues or anything like that, which helps a lot of governments in the middle east as well. so it has a role to play. at the end of the day, when it comes to the israel-palestinian conflict, israel is a key point here and the u.s. is a key player when it comes to that. while there might be a meeting of minds in terms of what should be happening in the middle east, israel has to be a party to any peace process, and china's

capacity to influence israel will be limited. haidi: going back to this idea of a timeline for the conflicts, we are not sure what happens afterwards, there doesn't tend to be a great deal of preparedness for reconstruction and whether a two state solution is even still possible. but is there a sense that this has dragged on for longer than perhaps netanyahu expected, has there been more resilient in the opposition? michael: yes, the ability of hamas to withstand -- israel's fighting forces are some of the best in the world so their ability to withstand them is amazing. i think it's been more of a surprise to the defense forces whether the netanyahu. fort netanyahu, the longer the war drags on, politically, that is helpful for him. but the ability of these guys to withstand it, obviously they do have 10 most to egypt and israel has cut through some of those -- tunnels, but they have a huge amount of weapons in storage.

they are still occasionally able to fire missiles into israel as well. their ability to withstand such a devastating fire power is really something to withhold. and another point to make on this seven-month idea as well, potentially that puts pressure on hamas's world when israel suggests that it would be there for the long haul, it does perhaps encourage hamas to look at a cease fire more seriously than it had before. paul: bloomberg's matt michael heath on the israel-hamas conflict. we are at the asia tech summit in singapore with cofounder of databricks still to come. we will discuss their outlook on ai as well as their ipo plans, next. we leave you there with some live of iceland, this is the volcano currently erupting. the scale of this is something to behold. the meteorological office saying rather than shooting -- it is

haidi: take a look at this thursday session. pretty lackluster. we had a weakness in my hand over from overnight, tracking both usbs lower. yields continuing to climb, jgb's almost trillion euros as well, putting pressure across asset classes especially in equities, mirroring the decline the result overnight. that week sale of treasuries reinforcing the concern about what higher yields will continue to do. the nikkei 225 is higher. the kospi seeing a bit more muted weakness despite decent tech earnings overnight. not seeing a great deal of positivity reflected. this deepening in global markets is -- this deepening

rout is sucking the appetite from these markets. also a pretty notable idiosyncratic story trading today. paul: yes, it's an interesting stock-specific day for australia. look at bhp, for example, off 1% and sliding all morning, this after one hour to the deadline, bhp said no, we are down and walked away from the bid for anglo american. it would have been the biggest deal in the mining space in a decade and created an absolutely enormous company. but it's not happening. look at sony, off by zero .8%, bloomberg reporting that sony is a clean fan. they are in negotiations to purchase queen's catalog for almost a billion dollars. australian beef producers having a good day. the last remaining trade strike

against australia from the chinese could be about to be lifted so we are seeing that lip sentiment for big australian agriculture names. let's look at the airline space. we did hear from american airlines, slashing profit and revenue expectations. top executives saying, "we misjudged domestic demand heading into the crucial summer travel season." that sentiment having a knock-on effect for airline stocks around the asia pacific. aseana off by one person. a bit of softness for japanese airlines as well. haidi: the singapore summit begins today, one of the region's largest such tech events, more than 400 speakers, 1000 sponsors and exhibitors. annabelle droulers is with our first guest. annabelle: thanks. joining us is one of the cofounders of databricks,

arsalan tavakoli-shiraji, thousands of customers around the world. give us an example of one in particular, and also how the company works in practice? guest: for example, at. everyone knows the company, as photoshop. now they have creative professionals trying to drive insights. they want to know what our customers are doing and how we give them that her capabilities and help them reach their customers, tons of data they have to bring together and then figure out how to use different things from regular analytics to the latest machine learning insights. it's a lot of stuff to get together. databricks says we can do that for you and to end and unlock a set of capabilities you didn't

have before cheaper and faster than he ever did. we have more than 10,000 customers globally who are doing that. annabelle: you have been around more than 10 years now, since 2013. how do you think the introduction of tools like chatgpt has changed your business? is there a greater awareness of the kinds of things you can do even though have a lot of things besides language models? arsalan: it absolutely has. the that joked i have is that previously we screened the data part. we had to whisper ai because it was considered futuristic. now the problem is that everybody is screaming ai and we are saying, don't forget the data part. when we previously had to convince people that ai was important, now we are getting calls saying how do i move faster on this. data underpins it. without data, you don't have ai. so the demand of people, we have seen a huge accelerant was the result of it. annabelle: do you think that focus on ai and the hype around it compelled you to bring your

own ai tool into the market? arsalan: we have had an ai tool before llm's or generative ai was there, but the key part is maybe because we jokingly are hippies, we have always been big on open source should, giving people a permit one of the things we saw initially was generative day i was you kept hearing about large proprietary labs building it and without the future had to be open models, they could be controlled for security, costs and the like. so we mature we basically put up models so there was a vibrant open source ecosystem and it's been great to see, in addition to databricks and others, you have others like meta stock and llama 3. i think open models will be at the core of the future going forward. annabelle: that is a good distinction to make, proprietary versus open source. when it comes to parameters you are setting, is that at the future of where we go from here? seems like we don't have the

compute capacity or the energy power to sustain these really large proprietary models. arsalan: yeah. i think also we get enamored with simple things permit the latest one is how many parameters do we have? 5 billion, one trillion? it reminds me of the old days where everybody would argue who had this faster chip for your computer. it's not really the bottleneck, and if you look at large models that are one trillion parameters, underneath they are much smaller specialized models. so we are seeing more organizations go to the model where they are saying the smaller model, this book for my actual need, and people are starting to care about how fast can i answer questions and the cost. because those big models are generally slower and very, very expensive not just a dream, but to answer a question with. databricks, the core is how do we drive down the costs and

customization with smaller models that are much more accurate that maybe some of these smaller models. annabelle: annabelle: let's talk about the business of databricks, you were last valued around the $43 billion mark. is that where you are today? arsalan: we are a private company. that was the valuation at our last round. annabelle: when was back? arsalan: good question. about a year ago or a bit less than a year ago at this point. we always got asked when we are going public. we like to see that when we raised, we made bets to investors about here is how fast we will grow. we have not only hit those targets, we have exceeded those targets and we are excited about where the business is. annabelle: what would be the timeline for the ipo listing? arsalan: we get asked that on a regular basis. we have said that we are not one of those companies that plans to be private forever. we plan to ipo soon. but we are also under no

pressure -- many reasons you get ipo is, can i get access to liquidity, to other enterprises know who we are? that is not a challenge for us. with things like gpus and llm's being private has given us the ability to invest and leapfrog over many others that would have been difficult if we were public. , so we are not in a rush to go public. annabelle: are you talking within this year? arsalan: i wouldn't doubt it would be this year. honestly, it's one of those things that there isn't a secret master plan on the wall and we are just not sharing it. [laughter] we are much more focused on when the timing is right and how we drive the business. annabelle: you have strong revenue growth as well, you are profitable now. arsalan: as a company, we are continuing to get more efficient. the crazy part is when you look at some of the numbers we have shared with investors and analysts, we are still basically growing at over 50% year-over-year, north of $1.5 million in arr.

no other company out there can point to that growth in numbers and continually getting efficient. that is why investors are excited about the state of the company and we are at the start. annabelle: what are the new growth areas? would you be looking to add further headcount, any specific regions you are looking at for that? arsalan: we actually never slowed down growth, we are still investing heavily particularly on the rmd side would we imagine ourselves being an innovation machine. and on the go to market side. apj in general tends to be a fast growing region for us. we are investing as fast as we can across a in terms of headcount. from a growth perspective, we continue to put out new product lines. for example, we weren't in data housing. in the last two years we have released a data warehouse, now north of $300 million arr in that area and we keep adding new capabilities. the best part is we don't

have heavy concentration in customers, even in our largest customers, we are not close to saturation. new capabilities, lots of new customers and even in our existing customers, there is lots of room for growth. annabelle: really exciting stuff and we are looking for more updates on what you can share on those plans. that was arsalan tavakoli-shiraji, cofounder of databricks. paul: and annabelle droulers in singapore. thank you very much. as he was talking about some of databricks' customers, one of those is grab, and we are just hearing they have signed an agreement or they are reporting a collaboration with openai, to use openai tech for mapping and customer support. this should enhance its mapping and customer support capabilities. grab is the ride-share giant in singapore, malaysia and other southeast asian countries. we will have more coming up at the hstech singapore event as

well. you can catch a u.s. sec chair and also singapore's communication and information minister at the times on your screen. plenty more to come on "bloomberg markets: asia." this is bloomberg. ♪

haidi: take a look at oil prices. pretty steady at the moment with a bit of softness across new york crude and brent crude there. but still holding steady after the retreat on wednesday. the broader risk-off sentiment of setting tensions in the middle east. we have the opec-plus supplied meeting on wednesday. analysts saying that some of these stock positions may have accumulated sufficiently to actually prompt moderate steps from opec+ producers. we are seeing speculative short in brent at the highest since november 12 20. it could be enough of a standout to represent a target for policymakers at that meeting. in other related news, bloomberg learned that saudi arabia is preparing to launch a secondary offering of shares in oil giant saudi aramco as early as sunday. sources say the seo could raise $10 billion. let's bring in our reporter, stephen stapczynski. stephen, what do we know? stephen: we know it could happen quite soon.

they are shopping this around and some investors from the middle east and europe are showing interest. the value would be 10 billion dollars. put that in context, the first initial offering by aramco, the share sale was about $30 billion as a company is worth a trillion dollars. so they are selling very small pieces of the company. but they are doing so because crown prince and bs, as he wants to use this money to fund other things. he is looking at ai, tech, tourism, developments that shaped the country away from mainly an oil dependent economy. that is why he is dipping back in. share prices for aramco of the initial ipo are down 10% so far this year. we have the chart here next to me. but offering -- again, maybe that is another way for them to boost the amount of capital that they have so they can look to

diversify further away from crude. paul: sticking with the oil space, we also heard conocophillips will acquire marathon oil, a $17 billion deal. i was struck by the ceo saying, we weren't necessarily looking for something, the opportunity presented itself. that is quite the impulse buy at $17 billion. could we expect to see more of this? stephen: listen, this has been a pretty -- it's a trend that is happening within the shoe space, people trying to see, how can i expand my footprint in shale, how can i get bolder wells and re-track those? you see that with the likes of chevron and eggs and eggs on especially since they had big winnings, huge profits. a lot of capital after the energy crisis in the last few years when oil prices jumped up above $100 and gas prices as well. looking at how can we use that

money? they are essentially taking it bet that the oil and gas demand is here to stay. around covid times there was discussion about peak oil demand. that discussion has evaporated and people are saying, how can i pump more and pump it cheaper? and shale is one opportunity. marathon has a lot of older oil wells permit so it's not a play by conocophillips to purchase new courage. they are doing a strategy where they get older wells which were used with sort of inferior hydraulic fracking technology. now you can kind of go back to those wells and re-frack them with a newer mix of water and chemicals and sand to get more output. so it's kind of a way of revitalizing it and getting more oil into their portfolio. it is fast and it's not a trend that will end anytime soon.

m&a is hot in this area. paul: senior energy reporter stephen stapczynski there. the latest corporate stories, activist investor nelson peltz has reportedly sold his entire disney steak according to cnbc, citing an unnamed source. his three and found management last month lost its bid to obtain disney board seats -- his tried and -- his trian fund management last month lost its bid to obtain disney board seats. sources say sony is working with another investor of queen's discovered -- discography which could total of $1 million. haidi: take a look at what we are watching across japan. talking about the pressure on

-- that these bond yields have been putting on other asset classes including equities. that is playing out with japan. a big move in the 10-year yield, rising to 109.5. the highest since 2011. this is on the back of treasuries extending that slide. a trio of dismal u.s. treasury auctions putting pressure. and there is chatter about how bond yields in japan are rising fast enough to potentially pose a risk to stocks. it is starting to show with equity falling through the use claiming to multiyear highs. and other expectations of a bank of japan rate hike at this point. 10-year yields have risen in each of the last four years. we saw a big increase of 34 basis points, in 2022 also the only year that we saw a decline in the topix as well. so it's a question of how much of that push higher in yields that we could see equities be able to withstand as they did across those other years. this year yields are up 46 basis points. it is seen as a danger zone for stocks.

so it's an interesting way to look at this as we see that big push higher for the 10-year yield, the highest since 2011 for jgb's. the yields on two-year notes for treasuries rising on wednesday, pretty close to that 5% mark last reached on may 1. so that is one of the key trading themes we are watching, the impact of the mold in yields across equity session. you can get more bloomberg radio, the day's newsmakers and in-depth analysis from the "daybreak team" broadcasting live from our studio in hong kong. it's available on bloomberg radio+ and also on the terminal. this is bloomberg. ♪

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paul: didi's net loss grew last quarter. for more let's bring in asia tech reporter sarah zheng. there has been changes at the top after a rough few months for diddy. how is the outlook? sarah: it was a mixed bag in your earnings. we saw revenue was up, but they recorded a bigger net loss than last year and that is primarily like you mentioned, because of that market value loss in the equity stake in chinese ev maker xpeng.

they have been going through a change at the top recently. there co-founder is stepping back as president and board director after almost a decade and stepping into a role called permanent partner. yesterday also, she was replaced by the cfo. haidi: this is broadly a story of a former national champion now striving to rebuild after a lot of restructuring. does that mean we will see a renewed push towards that ipo? sarah: i think that is something investors are definitely looking towards. we have been seeing sustained recovery in their domestic sales and domestic business. so it will remain to be seen whether or not they will get the kind of valuation they want when it comes to a renewed bid to relist in hong kong. haidi: does this feel like it is the company's like didi have reached the trend of regulatory

pressure and we are in an environment of weakness in the economy more broadly where there will be more supportive measures? sarah: we have seen that regulatory curves are easing pressure on the sector and the private sector more broadly is easy. but it remains to be seen whether or not this will be favorable for overseas bee stings. we heard from chinese regulators that they are supportive of overseas listings, but we will see whether they will approve or greenlit some of these bigger and high-profile ipos like the one from didi. haidi: sara jean, our china tech reporter, on diddy's. let's look at how our session is shaping up at the moment, the impact of rising yields on equity sentiment. it's a sea of red. u.s. futures extending the losses we saw in wall street overnight. the weakness spurred by there. we are seeing a bit of

downside pressure when it comes to trading in taiwan, when chinese stocks across greater china, line as well. but we could see a reversal. dollar-china is one to watch as the resurgence of dollar strength has created potentially on the one side, that benefit of export-friendly weaker yuan for policymakers. but we know that too much weakness is not what beijing wants to see. this is far from just an issue for china. paul: let's look at the currency space as well. in focus once again is the yen, the subject of the bloomberg question of the day today, that being, what happens when the yen hits 160? we are some distance off that at the moment, but it is around this level that those conversations around intervention inevitably begin again. we had some

uncharacteristically hawkish commentary from the boj, also keeping an eye on the q. week, we will get the budget out of new zealand, the details of that will be revealed in one hour's time. the deficit in new zealand is expected to come in at 5.7 billion dollars. we are anticipating the potential of tax cuts that could be inflationary. that could have implications for rates in new zealand, and the kiwi dollar. the aussie dollar at $.66. it had a good day yesterday after cpi's figures beat, putting tightening back of table for the rba. we will have to wait and see what happens in the next meeting in mid june. that it for "daybreak: asia." market coverage continues as we look ahead to the start of the date for hong kong, shanghai and shenzhen. "the china show" is up next. this is bloomberg. ♪ ♪

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