>> good morning and welcome to daybreak australian. we're counting down to asia's major market open. shery: good evening from new york. the top stories, emmanuel macron winds a second term as french president, defeating the far right's marine le pen. the euro jumping in early trading. paul: top u.s. officials reportedly visiting kyiv as russia's war enters its third

month. shery: was elon musk and twitter executives said to be meeting as the social media giant turns more receptive towards his 43 million -- $43 billion takeover offer. u.s. futures under pressure at the asian open this after already three weeks of losses for the s&p 500 we saw disappointing corporate results from the lack -- the likes of verizon friday. that did not help. and an aggressive writing path for the fed not helping either. although we have to say we have big tech earnings this week from the likes of apple, amazon and microsoft. we will be watching if we can reverse that trend especially in the nasdaq 100 which is down 9% in april. we could be headed towards the worst month since 2008. we continue to see strength on the dollar which is at a 2020 high. not surprising we are seeing losses on wti trading. in asia, trading towards $100 a barrel after a week of losses.

we had a report that chinese consumption has fallen by the most since the onset of the pandemic. but of course we are watching the euro. because we had seen three weeks of losses already then we had more certainty about president macron getting his second term and then we saw a bit of a rebound in the early session. although that is fading a little at the moment. we continue to watch that because it seems we have seen a sigh of relief coming from markets. paul: let's see how asian markets are shaping up in reaction to all this. no trading today in australia and new zealand. markets closed for the anzac day public holiday. but we have a look at the nikkei futures currently trading flat at the moment. we have the yen continuing to execute a very impressive slide now towards 130. a double boj still easing. yields at 0%. the fed continues to tighten. we had word last year -- last

week that the finance minister of japan might have discussed with janet yellen last week coordinated intervention. offshore you and also looking pretty good. dropped sharply the end of last week, the biggest decline since 2015 in fact. good news for the economy but the speed of that decline pretty hard to of norbert the aussie dollar holding up pretty well, 72.43, the best-performing g10 currencies this year. we are closing in on another rba decision next week although with the election on the horizon it looks unlikely a move at this meeting but june definitely a live one. shery: we continue to watch global balance because we saw that route continuing, especially with treasuries. we saw the two year yield leading the way higher and we continue to watch where this is going as chair powell heightened his hawkish tone, talking about frontloading policy moves. it remains clear that there is a

lot of uncertainty. investors do not know what to make of this because barclays was giving up on a bullish bet on 10 year treasuries in a week or so last week. wednesday we had bank of america saying it looked like it was time to buy. it did not play out 24 hours later. we continue to see very big moves on the eurodollar futures as well. paul: yeah, and the geopolitical backdrop still not great. were in ukraine now into its third month. and antony blinken and the u.s. defense secretary as well have now around in kyiv for talks with president volodymyr zelenskyy. this as air raid sirens were heard almost all over ukraine on sunday. also a significant shift in policy from turkey, now closing its airspace to russian jets flying to syria. but the defense and u.s. secretary of state both kyiv now. shery: perhaps when it comes to where this geo political tensions could go, there was a

sigh of relief when it came to european leaders in france. emmanuel macron winning a second term as french president after defeating far right leader green le pen. >> this day of the 24th of april, 2022, a majority among us made the choice to trust in me the presidency of our republic for five years to come. we have to consider all the difficulties of everyday lives and respond effectively to the anger that has been expressed. shery: for more we are joined by carlene qanon from paris. tell us a little about the implications for broader europe and the war in ukraine because of this macron victory. >> clearly this means continuity and stability because le pen facing him in the runoff, you had emmanuel macron. he does not want to leave nato. she wanted to leave nato, which

would of course been a huge disrupt there given the current situation with ukraine. so this election clearly means stability for the european project. france is still proved -- presiding the european union until june of this year. that is obviously a reasserting shine for the partners in europe including olaf scholz, the german chancellor, who actually congratulated emmanuel macron tonight. that means that france remains a reliable partner in europe and internationally. paul: so the margin of victory though, macron has been returned to the presidency but much tighter than it was four years ago. does this cast a shadow over celebrations at all? caroline: i was at the rally of emmanuel macron from his victory tonight near the eiffel tower. and i have to say it was a very different atmosphere to the

victory five years ago at the louvre when at the time there was a real sense of excitement he was the youngest french president in history, only 39 years all at the time. and of course there was all this excitement about his economic proposals. he was a newcomer in french president -- french politics. this time there were a lot of voters voted for him in order to block the extreme, to block marine le pen, can vent her from being -- prevent her from being elected. this is clearly a different sense of relief. also the margin was tighter, meeting his mandate will not be as strong as the last mandate. and over the next few months before the legislative elections in june he is also going to have to reconciliation the french because marine le pen has really managed to detoxify her party, to widen her appeal, see more

moderate, and this has main macron's party weaker over the past few weeks during this campaign. paul: all right. caroline connan here. macron's victory should offer relief for investors worried a green le pen upset would rock markets. let's now go to andrea pepper rock. >> that's right. in the short-term you are likely to see a relief rally. we are seeing that in the euro this morning. i saw someone describe it as an emotional rebound which suggests that while it does remove a risk to markets in the short-term, the headwinds that investors have been dealing with for the last few months will eventually reassert themselves as key drivers for europe and global markets. we had a more hawkish ecb.

we have the war in ukraine continuing to put pressure on commodity prices. so you have inflation. and most of all you have what is happening in the bond markets. as investors wonder if the fed has lost control of inflation. we are not talking about the timing of a rate rise now by the fed. we are talking about the magnitude. bond markets are increasingly boosting those longer-term inflation expectations. you had jerome powell last week endorsing perhaps more than one 50 basis point rate increases. and you have bond investors capitulating before those bullish calls we saw last week, with barclays dropping after about a week, giving up on its call for a bullish 10 year treasury call.

you also had bank of america saying maybe it had gone too far. but then that went awry the next day. so we have had the worst start of the year for u.s. treasuries in history. certainly since the bloomberg index began in 1973. and you have had those two year treasury yields up about 20 basis points last week indicating that what is going on in the bond market, what is going on and -- in inflation expectation be a key driver going forward. shery: cross asset age editor andreea papuc with the market reaction. u.s. secretary of state antony blinken and defense secretary lloyd austin are set to be in kyiv for talks with ukraine's president. for more details, let's bring in white house correspondent jordan fabian. what can we expect out of these talks? jordan: most importantly it is a

symbolic show of support from the u.s.. this is the highest level delegation the biden administration has sent to ukraine since the start of the war. and so we heard from the ukrainians that they are thrilled secretary of state and defense secretary are going to be visiting. the administration had been under pressure to send high level delegation ever since boris johnson went and other foreign leaders. so that is happening today. we expect them to discuss new weapons shipments and also new sanctions against russia. ukraine has consistently been pressuring the u.s. to keep up weapons shipments and increase pressure on russia. so we expect them to be discussing those options today in kyiv. paul: jordan, the ukrainian president so the u.s. should not come with empty hands. are they likely to get all the weapons of support they are looking for? jordan: yeah. this comes on the heels of an announcement from president biden last week of an additional

1.3 billion dollars in weapons shipments. that came after an $800 million announcement the previous week. that is including howitzer cannons for the first time, heavy artillery, that the ukrainians ask for in addition to more helicopters. president biden has said he will go to congress next week to ask for more funding to continue to pay for these weapons shipments. congress has been very divided over a number of policies including covid aid and immigration. this is another issue they are going to have to wade through. but both leaders in the house and senate said they expect to get to work on it starting next week. paul: all right. jordan fabian there. let's get over to vonnie quinn for a check of the first word headlines. vonnie: turkey has closed airspace the russian jets flying to syria including any civilian flights carrying troops. the move is seen as a show of solidarity with fellow nato members and adds pressure on moscow to end the war in ukraine. however, sources say their assertions are unlikely to halt

the movement of russian assets to syria, as moscow will likely use a radiant airspace. shanghai reportedly had a record 39 covid-19 deaths saturday, bringing the total number of at how these since 87 cents february. the average age of people was almost 79. and all at underlying diseases. china is sticking with its covid zero policy with strict lockdowns in the city. pakistan is asking the imf to extend its loan program for a year. the nation's finance minister said the request was made during talks with the fund in washington. he said the imf has largely agreed to extend the current program, but details will be worked out next month. the imf suspended sloan to pakistan after political turmoil led to the ouster of imran khan as prime minister. sources say elon musk is meeting with executives from twitter sunday to discuss his $43 billion unsolicited bid. the social media giant is said

to be turning more positive on a deal, including backing from morgan stanley and other banks. the wall street journal reports the meeting comes after musk met privately with several shareholders friday to pitches proposal -- pitch his proposal. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: still ahead, emmanuel macron wins a second term as french president. we will discuss how voters were influenced by the war in ukraine. plus the u.s. economic cycle shows signs of peaking despite talks of a possible recession. it seduction on that is just ahead. this is bloomberg. ♪ is is bloomberg. ♪

shery: it will be a mega week for earnings with hundreds of results due over the next few days. let's take a look at your week ahead. investors scrutiny on big tech will only intensify after last week's shock this appointment from netflix. we will get updates from the likes of apple, microsoft and alphabet. attention also on european banks after a mixed bag of results, with focus on how ubs and barclays are navigating the war in ukraine. big oil earnings are also set to reflect the impact from the conflict, and more than 500 chinese companies are due to report this week amid the covid lockdowns in major cities. paul: it is going to be another busy week on the data front as well. growth numbers from two of the largest engines of the global economy set to reveal the impact of the war in ukraine for the first time. the u.s. releases its first quarter gdp print on thursday. europe follows on friday. the fastest price increases in

decades are stoking recession fears, though treasury secretary janet yellen tells bloomberg she is confident the fed can engineer a soft landing. >> the fed is concerned about inflation. we have made clear that they will not be removing accommodation to try and get it under control. but i know they will try and achieve a soft landing and with some skill and some luck, we will have a very good year for the u.s. economy in terms of the job market this coming year. shery: we will also get perhaps the most interesting back of japan decision in recent memory. governor kuroda faces a real dilemma in maintaining support for his powerful stimulus program. without adding more downward pressure on the yen, which just suffered its longest losing streak in half a century. and those are the major events in your week ahead. let's bring in our next guest, who says the u.s. economic data and first-quarter earnings still show a lot of momentum.

with us now is ben emons, managing director of global macro strategy. ben, always good to have you with us. so you are not in the camp in wall street right now trying to decipher when the next u.s. recession is, or the peak in bond yields as of yet? ben: yeah, the recession is still somewhat off, because look, this economy is strong. this data in the first quarter was affected by omicron first and then the -- and then the ukraine war. if you look into the opening of the economy and you see all this activity happening as we speak, that does not tell you a recession or heading towards quickly. on the other hand, moved off not only because the energy shark but we are reassessing larger increments of essentials. now the door is somewhat open to rate increases.

that continues to put pressure on bond yields even though the growth number on gdp may show weakness this week. shery: and of course we saw the swift reaction from the markets at least when it came to the euro with the certainty that president macron had won a second term. what sort of lasting implications will be french election have? ben: for one, it's important the needle alliance is not -- the nato alliance is not disrupted. if that happened would have a difficult situation not just in markets. this election will move on to a third round where it will decide how macron will govern. that can still play into some politics long term in europe. i do not think the political risk is on the sidelines. from here it depends more upon

will these left-wing voters actually come out quite a bit start to influence the politics from here. paul: i just want to return to that idea of soft landings. we had jay powell telling the imf that that is obviously the goal and janet yellen saying it is possible in some luck and skill. what is the bigger factor here, luck or skill? ben: it is still a really challenging focus. it takes real skill to landon economy soft. it is only happened once or twice. we are talking a $23 trillion hyper economy. the pandemic shut down and reopening, and how much you actually do to the economy if you start moving it. having rate increases will be difficult to get softening. trade-offs towards employment

getting inflation down. the luck will be more about the dollar regaining strength here. if it continues that way then there will be some commodity price pressure that will be easy. that will be part of the luck for the fed. i think if they are skillful they managed to continue to be well digested in markets. [indiscernible] paul: do need a combination of luck and skill as well when it comes to investing in these sorts of conditions? ben: for sure. it looks like some form of stagflation air environment. i think components in there, people expect stockmarket and inflation has become quite

important. they seem to be discounting the stock price. [indiscernible] try to diversify so much. this is difficult for many investors. paul: all right. ben emons there. thank you so much for joining us. you can get a roundup of the stories you need to know to get your day going in today's edition of daybreak. terminal some scrubbers can go to dayb if you can customize your settings so your only getting news that you care about. this is bloomberg. ♪ this is bloomberg. ♪

paul: getting live pictures of sydney at the moment. markets in australian and new zealand closed today. it is a public holiday, anzac day, were the troops who fought in the third military campaigns around the world are honored. no trading in australia and new zealand. a poor end of the week for australia. asx down 1.5%. materials particularly beaten up.

but the aussie dollar, 72.04. shery: here's a quick check of the lid is business flash headlines. foxconn is keeping its iphone city campus in central china open, even with the covid related lockdown in the area. the plant is a major assembler of iphones for apple and is located in the airport economy zone. the area is now under lockdown indefinitely. the workers for key businesses can still commute with permits. two of china's steak bans are reportedly cutting ceilings for deposit rates monday as authorities urgent lenders to support smaller companies with lower financing costs. bank of china will lower -- exc use me. its two to three year deposit rates by 10 -- paul, i will hand it over to you. paul: all right.

it is not clear how state banks are going to follow suit. still to come we will talk more about the french election, emmanuel macron winning another term as president. we will discuss what his defeat of far right leader marine le pen means for the future of the eu.

>> this day of the 24th of april, 2022, a majority among us made the choice to entrust and be the presidency of our republic for the five years to come. we have to consider all the difficulties of everyday lives and respond effectively to the anger that has been expressed. >> in defeat, i cannot help feeling kind of hope for our french and european leaders. this result is evidence that cannot be ignored of how the french people greatly distrust them, and a broad aspiration for change. paul: french presidential

election concluding there. emmanuel macron winning a second term. for more analysis, let's bring in matthias matthijs, associate professor at johns hopkins university. so, a few victory for macron, as polls predicted, but much tighter than the race against marine le pen five years ago. and a third of ballots cast were also invalid or were abstentions. what does this tell us about the message being sent by french voters? matthias: it is an excellent question. the first point i would like to make is this is without a doubt a big victory. marine le pen did worse than some of the polls predicted. a few weeks ago she was polling roughly at 5050. some polls even had her winning. in the end, 58-42 is a very come to bow victory for macron. in a you kate or u.s. context, they would speak of a landslide.

they are immediately focused on the 42% who voted for le pen, which is correct. millions of voters who did not vote for her five years ago now did vote for her. and yeah, she did pack in all the anger both on the left and the right against raising standards of living, and against the meddling of europe, which for a country like france is still seen as meddlesome, if you like. paul: at what point eu member states have to have a bit of a conversation with themselves about border policies, this perception of meddling within domestic politics. this is obviously a growing hot button issue for those in europe. matthias: yes, and to be fair with macron back at the presidency for five years with all olaf scholz in berlin at the head of a coalition that is very pro-european, and someone like mario draghi at the head of italy, in the next year at least, europe has a chance with

pro-european leaders where they can finally find his new balance. what is europe going to do? what is eu solidarity going to be? are they going to be able to give memory states more flexibility on things like fiscal policy, on things like many economic policies? where frankly, countries have different trade-offs. so that will be the balancing exercise. that said, part of me also thinks there was a big sigh of relief in brussels and berlin and other european capitals and they will probably see this as a broad mandate to continue the policies they have been pursuing. around macron you saw french flags but you also saw a little bit of european union flags. shery: what about more specifically on president macron's strategy of strategic autonomy with his stance with the nato. where are we headed there? matthias: it is without any doubt that the absence of the united kingdom in the european union and the invasion of

vladimir putin's rush of cream gives wind and the sales of macron's vision of strategic economy, eu sovereignty. so we are moving in that direction. of course there is a difference between berlin and paris. paris and macron himself wants to have a fully independent eu, independent from the u.s., despite joe biden being in the white house and being very pro-trans atlantic relations. they are worried someone like donald trump could come back and win in 2024. berlin wants to stay within the context of data. let's be honest, the baltic states, poland, other countries are eastern europe are skeptical the french will come to their defense. again, this will have to be a carefully balanced exercise with the americans as well. shery: so how has president macron performed so far on his up a medic efforts to de-escalate the conflict in ukraine, and how would the june

parliamentary election factor in here as well? matthias: two excellent questions. one thing is that macron's efforts failed. he spent five hours at that long table in the kremlin with putin and nothing came out of it. a few weeks later the invasion happen. that said, the french people did not blame him for this. at least he was trying. his opponents were either pro- putin or pro-russia, and have not condemned the invasion as much as he has. that is one thing. but going forward, i would expect on his mind to be these legislative elections. they are only in june, june 12 and june 19. that is still a long time away. i think it will probably hold him back a bit when it comes to sanctions. he is very eager to send more weapons to the ukrainian regime in the fight against russia. when it comes to cutting off oil or gas, that will of course have an immediate impact on oil and gas prices, which will hurt him in these elections.

so i would imagine macron wants to slow walk further sanctions a little bit and be a little cautious, at least in the month of may and june, and want to first see a comfortable majority for the presidency to emerge. paul: just quickly, traditional center parties perform pretty badly in this election. what is the future for them? matthias: terribly, you could say, is the answer, is how they performed. the center-right party, 4.8% in the first round, lost their funding, did not make the 5% funding. and the socialist party only got barely 2% of the vote. so they will try to mend some of these losses to the legislative elections but it does not look good. we really have a france now with a broad centrist movement that supports macron, and any movement on the hard left and on the hard right.

and of course we have to see how the right place it in june, with another far right figure. there is a real eternal feud there as well. that is to be determined, but it does make it much harder for macron to form a coalition because he will not have easy partners to work with, if indeed his party does not do as well as it did five years ago, as most of us expect. shery: we will have to watch what happens in june. matthias matthijs, it was good having you want. now let's get to the first word news. vonnie: ukrainian presidential adviser says u.s. rick perry estate antony blinken and defense secretary lloyd austin have traveled -- it would be their first visit since russia's invasions began. president zelenskyy earlier said he would discuss the need for more u.s. weapons and was waiting for the security situation to allow president biden to visit. air raid sirens were heard across much of ukraine early sunday evening, warning of

potential russian airstrikes. earlier russia set it hit a large assignment of foreign weapons in odessa. strikes also continued on a steel plant in mario paul. kyiv is still pushing for a cease fire guarantee from moscow to evacuate thousands. south korea's incoming president has sent a group of lawmakers and policy experts to japan as he tries to revive relations. warming ties between tokyo and seoul would be a boost for the u.s., with president biden expected to visit the two countries and coming weeks. his administration is helping -- hoping for help from both on security and supply chain issues. the w.h.o. is invest get any source of an outbreak of severe acute hepatitis, which has sickened children in the u.s., israel, u.k., and nine other countries in europe. they say at least 169 children have been reflected -- been afflicted by the disease with at least one death recorded.

global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: u.s. treasury secretary janet yellen says the white house could be open to scaling back tariffs on imports from china. yellen told bloomberg it is worth re-examining the trump era duties to help revive american's relief from the fastest inflation in four decades. >> judging by the u.s. unemployment rate now, but they air our measures of the performance of the labor market. it has been decades since we have seen such a strong job market with sucks -- such excellent employment opportunities for people. you can see that in the high quit rate and the enormous level of job openings. so the fed is concerned about inflation.

they have made clear that they will be removing accommodation to try and get it under control. i know they will achieve -- try to achieve a soft landing. with some skill and some luck we will have a very good year for the u.s. economy in terms of the job market this coming year. >> let's talk about china, because you referred to that last week saying you really want to china to help the united states bring pressure to bear on russia stop the travesty going on in ukraine. what can the u.s. due to more just persuade, actually get things done? and what about secondary sanctions? could that urge the chinese to move in our direction? >> look, i don't see china at this point as undermining the impact of our sanctions. as far as i can tell, chinese financial institutions are

avoiding -- they very much value their access to the u.s. financial system, to the economic relations with the united states and europe. and i am not seeing them taking steps to undermine sanctions. we have made clear that that would be unacceptable to us. and made clear it would be unacceptable to help russia add to its stock of arms to conduct this warpage we would like to see them do more to take advantage of their relationship with russia to try and bring about a diplomatic end to this war. nothing would be better for the outlook for real growth throughout the global economy or for inflation other than stopping this war. paul: u.s. treasury secretary janet yellen speaking with berg's david westin there still

the come. twitter becomes more receptive towards elon musk's $43 billion takeover offer. an update on that next. this is bloomberg. ♪ this is bloomberg. ♪

paul: a bloomberg source says elon musk has been meeting with

twitter executives today in a sign the social media company is become more receptive to his $43 billion takeover offer. su keenan joins us with the latest. while the twitter board initially adopted a poison pill strategy, has there been a change? su: it certainly looks this way. this meeting comes just days after elon musk filed his financing plan. that made his hostile bid very real, and the board team also met with key twitter shareholders. people close to the matter are telling bloomberg that twitter is generally more receptive now to discussing a deal than it was previously. of course we are not getting a direct comment from twitter. the wall street journal quoted people close to the matter earlier as saying musk did meet privately over zoom to shareholders to pitch his proposal. the paper also said musk told the twitter chairman brett taylor recently he will not adjust his $54.20 a share

offered when he made his bid on april 14. he called it his best and final. observers note the financing detail in the regulatory filing was a key step. musk famously got into hot water and lost a lot of credibility for tweeting he had secured funding in 2018 when he tried to take tesla private. note, twitter shares are trading a bit below musk's offer price, 10%. so there's some skepticism still about the success of a deal going forward. shery: su, we've learned a little more about how musk managed to get a dozen banks to back him. what do we know? su: we know he was very enthusiastic, no surprise. berg learned the financing came together during a couple days over the holiday weekend, and that there was a slideshow that musk had presented to several of the big lenders in a zoom call he was apparently on.

bloomberg has also learned according to those close to the matter that mask's -- musk's plan for loading twitter -- we do know that musk shared some of his view on how he might run twitter. we don't have full details. not a lot has been shared publicly about what musk would do. we know he favors authenticating certain users. he has talked about how board members would not be paid any money. and we also know that he favors no censorship and is big on freedom of speech. but no details on how he would actually run twitter it is bid succeeds have been revealed publicly at this point. shery: su keenan with the latest on elon musk and twitter. it is time now for morning calls ahead of the asia trading day. the fed is not going to hike rates as much as markets are early betting, that is according

to the ark investment cdl cathie wood, saying inflation will end its spike and fallen dramatic fashion. that will give the central bank enough wiggle room to move less aggressively on interest rates than what is now priced in. ark's flagship is down about 45% this year. china's tech selloff is not over yet. according to a bank analyst was the first among market washers tracked by bloomberg to issue a bearish call on the sector last july. the analyst said no one knows what the real risk premium is for chinese stocks right now. the slowing economy, ongoing tech crackdowns, and the covid zero -- paul: shanghai's covid out brooke is showing soon -- few signs of abating even as the financial capital of 25 million people enters its fifth week since the lockdown began. for more, let's bring in stephen engle. what is the latest here. ? stephen: you actually write.

it is the fifth -- you are absolutely right. it is the fifth week since the lockdown began. the full citywide lockdown entering his fourth week. frustration is building. the numbers keep on building. the addition of another 21,000 new covid cases. most of them asymptomatic. we will get the sunday numbers later on. it also reported the highest daily covid death toll during this covid outbreak that began in about february. 39 fatalities saturday. now we had 87 since late february. the average age is nearly 79 years of age. they had underlying illnesses. so the frustration is definitely mounting as the city government friday announced it would adopt nine new actions to achieve the goal of quote, no community spread. that is another way of saying zero covid. that quashed a lot of hopes among shanghai residents that

perhaps some easing of the restrictions would be forthcoming. but it looks as though there is a doubling down of the zero covid approach. and i have seen the photos. i cannot confirm it but i have seen other media reporting that some areas have been surrounded by two meter high green fences. people literally being fenced in to keep them from being out in the streets and protesting. as you can see what is happening here. some iphone footage of local residents, frustration bubbling over. meanwhile, beijing, they had 21 new local cases sunday. residents of a district in the eastern part of the city, by far the largest district in beijing proper, that's seeing -- testing will be made today, wednesday, and friday of all the residents there. including four smaller communities within the district, which is where i live in beijing.

they are being designated as sealed. that district, that neighborhood being sealed while another 14 are being labeled as controlled. 21 does not sound like a lot. it is about one out of every one million people in beijing getting infected as of sunday. but still, authorities are worried about it spreading, like what happened in shanghai. shery: no wonder we are seeing the central part of china foxconn makes the most of its iphones going into lockdown last week. what we know about apple production? stephen: the concern is supply chain issues obviously. iphone city is within one of the cities. they went into partial lock down last week. they have the lockdown affecting workers at iphone city which makes the most iphones globally for foxconn. with the airport be locked down because the airport is the main

conduit for getting -- foxconn put out a statement yesterday saying we are still operating normally. they continue to curb the spread of the virus. a lot of these large factories are doing closed-loop systems, peeping -- keeping people on site so they can keep pumping out product. shery: we have more to come on daybreak. this is bloomberg. ♪ his is bloomberg. ♪

paul: u.s. seeing live picture's from far above us. spacex capital, the mission, the first all private spacex mission getting ready to depart the iss. it has been delayed for about a week. getting home will take some time. the detachment likely in the next hour. not splashing down into the coast of florida until about 1:00 p.m. eastern time monday. so, a long journey home for those astronauts. an indian billionaire has ditched a plan to buy future groups assets after prolonged legal challenges from amazon. the deal could not be fully implemented after future retail failed to win creditors approval.

amazon argued in several courts it had contractually had the first right of refusal to buy future, which used to run india's largest grocery train -- chain. helped by a drop in bad loans and growth in income from lending. net incomes -- compared with nearly $600 million a year ago. the bank substantially stepped up credit growth in recent quarters, outpacing its peers. catl is delaying quarterly results. the largest ev battery maker says the decision was made on a principle of prudence and wants to ensure quality and accuracy in its report. the firm last week posted better-than-expected full-year profit. shery: a key metal that goes into those ev batteries, copper, seeing three weeks of losses pretty there are concerns about chinese demand, not to mention

the strength of the u.s. dollar. which is why we are seeing wti prices head towards $100 a barrel. already we had seen a week of losses. we heard from our report that chinese consumption is down the most since the beginning of the pandemic. you have brent at the moment also below $105 a barrel. we are seeing gold prices holding steady right now. this after the worst week in five. the strength of the dollar, the anticipation of faster tightening from the fed all being felt. a completely different story from the grains and soft commodities. oil rallying, it's best run in five years. indonesia signaling plans to shut the door to palm oil exports. paul: let's take a quick look at currencies around the region. the euro rebounding at the moment. on the news that emmanuel macron has been reelected as president of france. the first incumbent to do so in about 20 years.

58% to 42%, a little tighter than five years ago. the aussie, 72.41. the yen creeping towards 130. still to come, why they expect yields to move up. this is bloomberg. ♪

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paul: good morning. we are counting down to asia's major market open. shery: welcome to daybreak asia. our top stories this hour, french president emmanuel macron secures a second term in a boost to the eu grappling with the war in ukraine. asian stocks may struggles to start the week as investors weigh disappointing earnings and the prospect of fed rate hikes. plus, elon musk set to meet