the judicial system take care of itself. we have three branches of government. they act independent of each other. all of us have responsibilities. to maintain this. joe: i appreciate your insights on an important day. democratic congressman jim clyburn, one of joe biden's chief surrogates. i am joe mathieu. in washington. that does it for balance of power. special programming with much more ahead on bloomberg tv. and radio. ♪ >> welcome to bloomberg australia. counting down to asia's major market opens. >> the top top stories this hour. >> a rigged, disgraceful trial.

the real verdict is going to be november 5 by the people. >> donald trump found guilty on all 34 counts in his hush money trial. now the first former become a convicted felon. we're live in new york and washington for all of the reaction. >> ahead, asian futures pointing to gains for fresh data showing the u.s. economy is growing at a softer pace. >> plus, bloomberg reveals the u.s. is slowing a.i. chip exports to the middle east while officials carry out national security review. >> donald trump is calling it a disgrace, after "a rigged trial." the biden campaign says that it proves that no one is above the law. a jury convicted the former

president on all 34 counts with sentencing due july 11, days before the republican convention. they are there too -- if they nominate him for another run at the white house. >> this was a disgrace. this was a rigged trial by conflicted judge was corrupt. a rigged trial, disgrace. they would not give us a venue change. we were at 5% or 6% in this district, in this area. this was a rigged, disgraceful trial. the real verdict is going to be november 5 by the people. >> let's bring in our guests, joining us live from the courthouse in lower manhattan. kailey, i'll go to first. what has been the immediate reaction given this is the first criminal trial of a former president? it happens five months out from the election. kailey: we cannot underscore enough how significant this day

is in american history. this is not only a former president of the united states but the current presumptive number republican -- republican nominee who stands a convicted felon, found guilty of falsifying business records, it is an incredible moment. donald trump has maintained, as he did so outside the courthouse, today, his innocence. he says he will appeal this. he also has said that this is a justice system being weaponized against him. even though that may be factually inaccurate. and all the way, he is actively campaigning to be president once more. and already we have seen a number of surrogates for the president including a number of republican members of congress who have come out in defense of him, against the way the justice system work here. it is already having significant political ramifications, but we all will have to wait five months more to find out how it may actually influence voters opinions as they had to the polls and decide whether or not they would like donald trump to have a second term in the oval office. right now pulling suggest it may not actually influence that many

voters at all. that not many minds will be changed as a result of the historic nature of this events that happened today. >> and david, i'll go to now as well because you are live from the courthouse as we said, and will bring some footage of that as we get it but paint a picture of what is happening down there, and what is the tone not only from perhaps people protesting but also those pro-trump supporters that we know are there. dave: they've largely disappeared it at this point. the day had transpired until about 4:20, when the judge told people the court room he was at the jury home for the day and it a surprise move the jury gave the judge a note saying they had reached a verdict and asked for additional time to fill out the paperwork, to let them know how they would render the verdict in this case. then there was just electricity through the large media presence that has been down here in lower manhattan and in the park just next to me in front of the courthouse, where you had protesters on one side, and supporters of the former president on the other and there were cheers from one and jeers from the other as word of the field -- the guilty verdicts

made their weight out to the public outside trade this happened incredibly fast. there was a delay as the paperwork was being put together but once the clerk began reading those decision it was 1, 2, 3, four all the way up to 34, 34 felony counts of falsifying documents in the service of another crime, that crime being interference in the 2016 presidential election. there has been a lot of police presence down here around this courthouse over these last few weeks as this trial took place. today was no exception. again, as that verdict was announced, we saw police lined up sentry style behind me in front of the courthouse, one every eight or nine feet, keeping watch over what was happening but by large, despite how tense it became, how much anticipation led to that verdict, there in no scuffles or no major fights, people pretty peaceful in lower manhattan. >> david, what's likely to happen from here because but we know theoretically he could be sentenced to a jail term. is that sort of likely. does it matter when it comes to

his supporters because we know his legal shortcomings tend to kind of galvanize them if anything else. dave: it is a great question because you look at the polling, and there are those who support the former president who are likely to continue -- to continue to support him. maybe there is a sliver that might be swayed by the fact he is now a convicted felon. we have to see how that plays out. the former president came to look ahead to november -- to the november election to move it from the legal to the political crucible. the day july 11 looms large, the sentencing date and it is to the judge's discretion to decide what the sentence is going to be. so the maximum penalty for each of these 34 counts is four years in prison. they could be served concurrently and it is up to the judge to decide. he may very well decide he will not remanded donald trump to prison. but there is this vacuum that has emerged yes the president will move ahead in this political forum, but he is waiting as we all are to see what this judge is going to decide. it is up to him to make that decision based on the guidelines in the u.s.

>> kailey, yes it could perhaps galvanize trump's most ardent supporters but what about the group of undecided voters, how does it influence them as well? kailey: this is a question we all have. based on bloomberg's reporting or polling rather, together with morning consult and the seven swing stinks that are very likely to decide the outcome of this election, -- the seven swing states that are likely to decide the outcome of the election and in january and it was hypothetical, more than half of voters said in those swing states they would not vote for donald trump if you were to be convicted of a felon. -- of a felony. the question is does that change now that he is one. just today a poll was put up that found that two in three vot ers said a guilty verdict would have no effect. we will be watching the polling very closely but of course there is only so much polls can tell you and we are five months out

from the actual vote in november. what could be more telling is the fund raising that happens. off the back of this. earlier this evening, after this verdict came down, win red, a popular republican donation site was down because it was being overloaded with so much activity. so if donald trump is able to, as he has done in the past with his many legal challenges, fund raise off of this, bring more moneyin to go into his campaign, to provide a cash cushion for him to campaign with, that could really be telling, and of course will be watching to see whether or not joe biden also shows the same ability to fund raise off of this and to what extent it could help the incumbent president. >> yes, varying donations from supporters on either side. david, before we leave this, what are some of the gut sense that we're feeling, we are as we mentioned a few months out from november. obviously, this couple case matters from the republican side. are there viable alternatives being raised here?

dave: no. not at all. that makes the situation even more perplexing. i mean, we had a host of candidates try to fight against donald trump for the republican nomination. he has emerged as the presumptive nominee, in the lead from the beginning. it was not a question of who might match or replace him in the race. it looks very much like it will be a donald trump, the 45th president against joe biden come november and this is just a backdrop to that and something that voters will have to reckon with and think about as they make their way to the polls in november. >> that was bloomberg's david garin the live from the courthouse in new york and of course bloomberg's kailey washington as well in washington. you can get more on the trump verdict at a round the stories you need to go in today's edition of daybreak. very much focused on donald trump, his conviction in this historic case, available on dayb

u.s. futures coming online this morning. and a little bit of downside pressure. you can see. really reflects intraday the session as well, given we had those u.s. gdp figures coming out and saw that slowing in the first quarter. really personal spending or consumption weighed on that particular pullback in the order sector that led to concern around the health of the u.s. economy and how that high rates environment could be impacting corporate america and tech stocks took a bit of a hit, haidi. haidi: we are getting into the final friday session of the week. even as, with the top news, with the political implications of the trump verdict, we have seen, investors quickly scanning for signs of potential volatility after that verdict in terms of a market that tends to not u.s. political -- to that, we are not seen just u.s. markets but global markets looking ahead to the key inflation gauge, more of that u.s. data showing that next --

mixed picture and what that means for the fed and central banks. these issues looking pretty positive with eyeing some early games not just for australia but also in japan and hong kong is well-paid new zealand, the day after the budget up by .08%. we did hear from -- the finance minister saying that her first budget, is a friend not a foe. trying to comfort some of these concerns, that we do see that fiscal and monetary tension with a lot of these budgets being delivered. nikkei futures are looking softer. in the day ascension. -- the day's session and south korean industrial output is one of the data points we should be looking at, seeing a rise of 6.1%. some resilience there when it comes to factory output in korea. more to come on bloomberg australia. this is bloomberg. ♪

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from the u.s. election as well. big question, of course for traders is how that decision is going to be impacting markets that are already starting to prepare for that vote ahead. let's get more on that now, bring in george, the managing director for research investments and advisory at -- asset management and george, we know that markets have been immune to political turmoil in the past, but still, you have this increased political volatility. what is the impact for traders, do you think? >> good morning. thanks for having me on. it is clearly extraordinary within guilty and he is a felon in the state of new york. and markets, are going to be looking through this, as strange as that sounds. there's amplified behavioral components to all this and people will suffer from various views from both sides of politics but looking through it, what markets will be saying is what will be the economic landscape after the fifth of

november under a biden situation, more of the same, government being a footprint, driving earnings in that capacity with the recalibration of trade wars and investment in southeast asia via nafta, the status quo. with trump going on, the possibilities there, they will look through and say the tax cuts will be embedded for the next term and there will be a bit more color and amplified sort of language. but that is what the markets will do. they have to go through this noise, it is extorted what has happened with the 34 guilty charges. -- it is extraordinary what has happened. they will look and see what the opportunity is. politics is an extraordinarily brutal landscape. and u.s. politics even so. just keeps pumping up -- popping up with some interesting new ground. >> so, george, you're saying that really not much your reaction in the markets paid what will be the big driver?

where the fed goes or the cracks we are seeing with the u.s. gdp figures undershot overnight? george: aggregate conditions are reasonable. it continues to be part of earnings. when you break it down, you can take a different narrative depending where you stand. quite clearly, high-volumes can be tolerated and won't be as much of a headwind for equity valuations of economic conditions and gdp is expanding. that is an obvious statement, but if you got additional acceleration of core inflation, following from the core cpi that momentum is not behaving for the last three or four months, then that becomes a bit of a headwind for valuations. human upgrade of conditions up until recent months -- you have an upgrade of economic conditions up until recent months and we may have a downgrade going into the second half of this year. when you look at the first six

months of this year on reflection, that is a reasonable economic backdrop that has been supported for -- to grow in north america. the high volumes can be tolerated for most people. but there are unknowns. as a demand destruction kicks in for the restrictive policy. it is a reasonable landscape it at the end of the day, at the stage, equities look like the best asset class performer for calendar 2024 depending on the d acceleration and what happens in momentum of some of the data. haidi: higher for longer and the u.s. and some certainty in the next few months. does that make international markets more alluring? do you think there is further to go for japan with or without the sort of i guess added support of a weaker currency. >> in part, yes. the -- u.s. dollar will continue to now. --for now. it looks a little bit fatigued depending on what the ecb will

do, how they will cut. but taking a step back, it still seems more predict will for the earnings last step, notwithstanding the comments on the politics front for north america. again, the trade wars, all that has really done a recent years, editing increasing rate is redirected investment in u.s. earnings into southeast asia, and the nafta agreement through mexico and re-accelerating the earnings momentum that way. so there is a reasonable aggregate earnings backdrop, and obviously we do like nikkei can be the beneficiary of a.i. and even though they have some soft consumer components and demand and that economy, the export sector can be a resurgence in the year ahead. and there is valuations in parts of europe. but, at the end of the day, the equity picture -- with the s&p 500 being preferred until year end. credit and debt will be a biggest footprint and people's portfolio and it comes down to the u.s. dollar picture. we still think that the strength will be maintained in the

shorter-term into the second half this year. annabelle: you are not willing at this point to get direct exposuure in china. what is compelling in terms of proxies and indirect ways? george: yeah, exactly. underweight china like most people in the developed world would be maintained since march quarter, for those reasons. having said that, their good sign is -- good signs with the housing construction issue and the re-acceleration that could be in part driven to the export momentum they are getting into china. so the way to play very quickly is exposure to earnings exporting to china. and if you want to get into the technology side and the hang seng would be the place to go. exposure again. lng, hard commodities and some metals, and like is that if you're playing on the technology resurgence for mainland china, the hang seng, but underweight into investing into china.

annabelle: always was great to chat with you. the managing director of research and investments and advisory at k2 asset management joining us out of melbourne today. more to come on bloomberg australia. this is bloomberg. ♪ at morgan stanley, old school hard work meets bold new thinking. (laughter) at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley.

♪ >> talks between the u.s. and china are set to take center stage in singapore. military chiefs in both countries are expected to have their first in person meeting since beijing named a new defense minister year ago. our bloomberg markets asia anchor husband amen joins us now. -- haslinda ahmin joins us now. haslinda: well, defense chief are looking more than a handshake. we know that these are really volatile times, tensions are escalating around the world, we

have the south china sea, the ukraine war into its third year, and of course, tensions in the middle is pit north korea launched missiles recently trying to disrupt communications in south korea. and of course we had china and those drills around taiwan. said just yesterday that it resulted in results that it was expecting. these are potential flashpoints, the potential of escalations in terms of tension. so there is a need for defense chiefs at this shangri-la dialog to dial down the tensions. front and center, as you said u.s.-china relations. we have the defense secretary of the u.s. lloyd austin come he is expected to meet with his counterpart in china face to face, meeting for the first time. we know that in terms of military relations, it was resumed just about a year ago,

after nancy pelosi's visit to taiwan shut down relations between the two sides. now, it is important to both sides have candid discussions when it comes to key military relations and key issues surrounding both sides. we know that relations have been under a lot of pressure in recently put more pressure by the rio position on tariffs on chinese imports -- the re- imposition of tariffs on chinese imports. it is entrancing time. notwithstanding the south china sea also front and center. we are waiting to hear the keynote address from the philippine president. he is expected to talk about how tensions have escalated and the south china sea. he's pushed back a lot in recent weeks and recent months. remember, he is said if he wants to -- he wants to dial down tensions. bring back relations to an even keel. he said in an interview recently with me that he does not want to poke the bear.

so, we are waiting to hear what he had to say since tensions have escalated since that particular interview. and of course, lots coming right up. we have key speakers, key voices that you want to keep a look out for. we will speak with john -- the u.s. national security agency director. we will also be speaking to the defense minister of new zealand. remember, this is one country that wants to join-- what's the state of play, what is happening to that bid and will new zealand perhaps raises defense budget to 2%, that is pretty much required by nato. of course, we will also be speaking with a lithuanian prime minister to take stock of what is happening ukraine. she has said that we have not seen the worst. lots coming right up. >> that was our bloomberg markets: asia anchor and chief

south asia international correspondent for southeast asia haslinda amin live in singapore. some of the other geopolitical stories we are tracking today, and that is bloomberg being told that u.s. officials are slowing the issuance of licenses to chip makers to the middle east for this comes as officials conduct a national security review of a.i. development of the region. sources say that they are focused on high volume sales and it is not know how long the review could take. president biden allow ukraine to launch u.s. provided weapons against military targets near the border area of karkiv. a top u.s. official says kyiv is not allowed to carry out long-range attacks inside russia using american weapons. biden had a post-call to use u.s. weapons inside russian territory earlier. haidi: take a look as of course just the latest political news

from the u.s., how u.s. assets are reacting. the former, the impact of the former president donald trump's historic guilty verdict in a trial, yet to set in when it comes to wall street. we do know that that is -- investors tend to see through often when it comes to domestic liquid turmoil. we had our fair share of that over the last three years and that potentially continuous depending on what we get in november but we are asked skiing, futures looking softer. her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit... unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...” so, if you could change the price, change the name! it's not a lock, i know a lock. so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. okay, that's uncalled for.

>> taking a look at what we are getting across the bloomberg when it comes to tokyo cpi, a pretty good leading indicator in terms of where broader japan inflation pressures are going. the may cpi on fresh food and volatile energy prices at 1.7

year on year, the overall rise 2.2%. core consumer rising 1.9%, pretty much in line with expectations. the data is being scrutinized given the weakness in the end -- the yen. we will see if the bank of japan will put through the next rate hike sooner rather than later. >> the jobs market key to that as well and we are getting the jobless figures, job to applicant ratio and it pretty much point -- paints a picture of steadiness. the drop to applicant ratio with just a slight tick down, 1.26 of for every applicant instead of 1.284. a little against the grain because the survey had been for it to stay steady as well. i really key one to watch for

the direction of the bank of japan, whether we are seeing a comic strength warranting -- economic strength warranting cutting. let's look at equities, we are 30 minutes out from the opening of sitting, soul and tokyo. aussie stocks particularly ookig at a gain of 7/10 of 1%. you look against u.s. futures and we did see u.s. gdp figures undershooting expectations overnight, softness in personal spending. concerns around the health of corporate america perhaps. we did see weakness but so far we are not seeing that translating so far. there are political risks to consider as well and that could of course play out over the coming months. haidi: really interesting. we know a lot of these markets tend to look at the colorful

list of -- colorfulness of u.s. politics but this is historic, donald trump the first former u.s. president to be convicted of crimes. this verdict creates a daunting political and legal path ahead as he shapes up to take on president biden in november. jeannie, as we were chatting about, we are in uncharted territory. it is your assessment of the implications of this and how we proceed in terms of the various scenarios going forward? jeannie: uncharted territory is the best phrase to describe this. we are sort of coming to the realization we have the presumptive nominee of a major political party who will be getting the nomination of his party presumably just a few days after he is sentenced for this

crime. you have the 12 new yorkers, they heard the evidence and they found him guilty beyond a reasonable doubt. of 34 felony counts. those were accounts that are very serious. they suggest he stole the 2016 election, yet he's on the ballot again and all polls indicate he's got a very good chance of making it. we don't know what the implication is going to be. polls suggest six to seven out of 10 americans won't change their vote regardless of whether he is convicted or not. he's been convicted so we have to take a wait and see attitude as to whether they follow through with that. haidi: what does it mean for donald trump in the near turn because this trial has taken up so much of his time. what will we see him doing from here? jeannie: we know in the

immediate, tomorrow he will have a press conference in new york. they are already sending out fundraising emails where he is saying he is a political prisoner. their site to get donations crashed which they suggest is an indication of how we people were trying to access it to donate. he will be hitting the trail in terms of fundraising and making the same case he has been making for several months now if not longer, which is this is the biden campaign, the biden administration. they've gone after him, he is a political prisoner, the victim of political persecution and it was all rigged. that will be what he does. the question is what to the american voters do, now that you have some to guilty of these felonies, he can't buy or purchase a gun in his own home state and maybe cannot vote, yet

the constitution says he can be on the ballot and we can vote for him. it is a very tricky political moment to think about how they would even try to make the case that he should be elected. i would add the republican party has no means to take them off the ballot now. they are stuck with him, if you will, and already we've heard many republicans come to his defense. annabelle: we know as expected, the former president has used this to try to spur remote donations. haidi: emails have gone out pleading with supporters. we know his legal and other shortcomings tend to galvanize his support base but as you mentioned, this is a case of what happens in the swing states. we have this interesting graphic. 20 end of january we reported that at least according to some pulling, more than half of swing state voters would not trump -- vote for trump if he was convicted of a crime. do you see that changing when it

comes to the latest poll data you are saying? how does it play out for the undecided voters in november? jeannie: polls have indicated we may see some fluctuation but it has been very small, and to your point, has changed in the last several months. the last set of data we got was just yesterday and i would caution that this data is really difficult to tease out because we are asking voters what they might do in a hypothetical situation. that said, the latest data we got was just 6% to 7% of donald trump supporters said they would not vote for him if he was convicted. 6% or 7% isn't a lot but in an election that close it is a concern for his team because we are talking about a few thousand people in three to six states that can make a difference given the way we run our elections. it may cost him the election but again, i would underscore we are

159 days out of the election and he has given every indication, this is incentivizing him to remain on the ballot more than he would have because he feels his life is on the line. he feels one way to avoid prison, which is a real possibility, is to run and win in november. annabelle: is been incredible to watch from an outsiders perspective, just how strong the view is from some that this is a trial that was rigged and corrupt. hearing that from a lot of different voices. including as well from the business community because i was just reading a tweet from bill ackman for instance saying he agrees with that sort of sentiment and also could be likely to endorse trump ahead of the election. how strong is that argument and

is there any sort of dismantling of it as well between voters views? jeannie: i think bill ackman's voice is an example and i'm glad you raised it, that this is something we hear an awful lot over here. not just from donald trump space, the 30% who say they will stick with him regardless. but you here at throughout, we are hearing it from the speaker of the house, we are hearing it from lindsey graham, high-ranking republicans. to your point, people in key positions in business and elsewhere. they feel the manhattan district attorney, often described by donald trump as somebody who is soros supported, he would have an incentive as a democrat, which he is, to bring this case, that the case did not make sense, he should not have been charged with felonies, and this is something that should not have happened but is happening

in donald trump's own voice in a city where joe biden won by an enormous amount and probably will again. that sentiment is very real. i should say there is absolutely no evidence that the case was rigged. but people are echoing what donald trump and his team have been saying a long time. we don't know, maybe the 34 counts and the realization that 12 new yorkers found this may change some minds but so far we haven't seen evidence of that and i think bill ackman, you look at people like elon musk and others -- elon musk has not endorsed yet, but he is discussed as somebody who might play a role in the trump administration if there is one. these people are making a case that this is the joe biden doj who has gone after their political opponent for purely political reasons and that is resonating despite the absence

of evidence to that end. annabelle: really fascinating insights. we will have more ahead on "daybreak: australia." this is bloomberg. ♪ thanks to avalara, 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

annabelle: our next -- haidi:

our next guest is warning of an increase in digital trust issues , the consequences of innovation from quantum computing to ai. this company says it is working with 80% of fortune 500 companies and 70% of firms listed on the asx. the ceo joins us from melbourne. it makes complete sense in terms of this era of digital distrust we are in and the escalating technology also risks posed by things like ai and generative ai. what does it mean for your business, which has been in the business of authentication and security for so long? amit: first, thank you for having me. digital is the global provider for as you mentioned, 80% of fortune five -- 500 copies worldwide.

digital trust is something we take for granted, it makes sure all the actions you have on secure and trustworthy. how do you know you are connecting to your bank website and not a fake one? had you know the software you got on your apple iphone came from apple? you may have signed a digital document, how has it not been altered after you signed it? how does a hospital guarantee its critical medical systems haven't been tampered with? all of this is based on digital trust and under the hood is cryptography and digicert has been the leading provider for over 20 years enabling all this info structure on the internet. you mentioned quantum computing and generative ai, happy to talk about it, fundamentally, all of this trust is based on math problems that current computers

cannot crack. however, sufficiently stable quantum computers can easily crack all of that math that is foundational to digital trust as we know it. as you are aware, ibm, microsoft, google, many nationstates have been pushing quantum computers. i was happy to see that australia is going to invest a billion dollars in getting to quantum computers in brisbane. all of that is very exciting because quantum computers can solve problems that other computers cannot, climate modeling, discovery of new medicines or even ai, but a double-edged sword. those computers can break cryptography and it would be an extension level -- extension

level event for computing as we know it today. annabelle: i think what you are referring to possibly is shores algorithm, which is the point at which you can have quantum computers that can basically bake -- break all of the encryption systems used today. how do you prepare for that sort of future when the technology as well isn't quite ready yet? amit: that's a great question. i am here in melbourne, we have over 6000 customers in australia and a lot of discussion is around preparing for post-quantum cryptography. digicert has been working with the u.s. national institutes of standard and technology, and we co-chair the internet engineering task force. we've been busy developing what are known as post quantum cryptography standards. these standards are best on a new class of math problems that even quantum computers cannot crack.

those standards will be available later this summer. digicert announced december 26, 2024 as the world's first quantum readiness day. what progressive organizations are doing is basically preparing for crypto agility come the ability to upgrade their digital trust info structure to post quantum standards. it usually starts with step one, discovering all the crypto assets in your organization. to give a simple example, how do you get your identity? you go to a passport office and they check your documents, credentials and give you a passport and now you can use that passport and go everywhere in the world. think of an organization. an organization may have tens of thousands of servers, user devices, even users, organizations, software,

content. all of that is protected using cryptography and digital trust. organizations need to have an inventory of all of those cryptographic assets, what is being used in it, and prepare for automation so they can quickly upgrade to post quantum cryptography standards if and when they are available. you would be surprised to know that messaging protocols such as whatsapp, zoom, they started switching to post quantum key encapsulation to make sure that even if there are state actors capturing packets with the hope that once stable quantum computers are available they can decipher it, they are still protecting users using post quantum cryptography. digicert is sort of leading the way, helping organizations with

their trust lifecycle management. discovery and automation tools so they can quickly upgrade as and when they are available. annabelle: the post quantum cryptography, can you give more context around that for people who are perhaps unaware of the risks from this sort of transition or technological advancement? and also the data being switched across, is that being backdated or could you have bad actors in the system going back and getting historic data as well? amit: great question. all of those are current threats, even the stable quantum computers that are not available, you can now capture traffic on the internet encrypted with the quantum standards, store it later on and

encrypted to get access to keys and other information. similarly there might be long-lived contracts, you might be assigned a contract that has to be valid for 20 years. with quantum computers you can alter the document and re-sign it. how do you make sure that long-lived documents, the software out there, devices out there have identities that can be trusted with the looming threat of quantum computers? if you take a look at the scope of the problem, it is fairly massive. it is like a y2k problem without a clear date. it could happen year from now, two years from now. regardless of the timeframe, the time for preparation is now and that's what progressive organizations are doing. haidi: you talk about this as an

extinction level event. my questions fall in terms of how do you assess the level of preparedness and willingness of the senses to be listening to the advice and what is the readiness in terms of how quickly the algorithms can be deployed once there is the commitment? amit: that's a great question. most organizations unfortunately are not prepared. we've been working with our customers, they have been deploying our platform that enables discovery and automation of all the could to graphic assets they have inside their organization, and we are helping them prioritize their crown jewels first. because there's a lot of upgrade that needs to happen. but it does represent an opportunity for organizations to become a crypto agile. digicert is leading the way helping organizations achieve that.

annabelle: that was the ceo of digicert. thank you for your insights. we have some japanese industrial production figures dropping, industrial production undershot estimates with a contraction of .1% on the month. the estimate had been for growth of 1.5%. also looking at retail sales and those figures, we are just getting through, beating estimates. month on month figures, we are looking at growth of 1.2%. that was double what the survey suggested, and on the year, a growth of 1.4%. a mixed bag because we are seeing inflation pick up as well but the jobless, employment market fairly steady with the employment rate holding at 2.6%. the japanese yen steady near the

157 mark. more ahead on "daybreak: australia." this is bloomberg. ♪

haidi: as we continue to the drumbeat going into the end of the week, the big headline when it comes to domestic u.s.

politics and huge implications potentially as we head into that november presidential election is former president donald trump found guilty, becoming the first former u.s. president to be found guilty of crimes in the nation's history. this could reshape the political landscape, we are just five months out from election day. the jury of 12 new yorkers finding him guilty of all the 4 counts ave -- counts of falsifying business accounts. annabelle: the big countdown to the sentencing, that has been set for july 11, so the timing could not be worse for trump, just days before the republican convention, and that's where the party will officially nominate trump. it's likely to galvanize trumps voters and we are seeing signals

of lots of comments coming to repute the big group is the ones in the middle who haven't chosen yet. haidi: we will be discussing that coming into election day. what better place to do it than the asia trade, the first episode is coming up. so, what are you thinking? i'm thinking... (speaking to self) about our honeymoon. what about africa? safari? hot air balloon ride? swim with elephants? wait, can we afford a safari? great question. like everything, it takes a little planning. or, put the money towards a down-payment... ...on a ranch ...in montana

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and looks at the most effective ways, to get resources to them, to get services to them. the idea that we have saved five million people's lives, it's overwhelming. it's everything. haidi: this is "daybreak: asia." perhaps not so much as something with market indications but the focus the last couple of hours is the new york court room where

donald trump has been convicted in a historic case. haidi: historic indeed. first former president to be found guilty of crimes, all 34 charges when it comes to the falsification of business records to conceal these payments. yes this is a market that tends to look through some of these shorter-term domestic u.s. political complications but it is a complication. all the implications in terms of swing voters and the logistics of how he continues to run for president from here. annabelle: certainly a lot of questions and probably more questions past this stage. markets coming online, is a day for japanese economic data, the most forward-looking we've had come through is the tokyo inflation numbers. a bit of a pickup over make, so does perhaps keep the boj on track for rate hikes. we sell r