haidi: a very good morning. we are counting down to the asian market open. shery: i'm shery ahn from bloomberg's new economy gateway latin america in panama city. welcome to daybreak asia. our top stories this hour. asian stocks could be set for gains after u.s. rallies sentiment improving following strong data on retail sales and factory output. markets also weighing the most hawkish comments yet from jay powell who is promising continued -- to tame inflation even if it brings some pain. plus, chinese companies listed in the u.s. get a boost after beijing's public show of support for internet platforms. haidi: we will take a look at asia markets. markets in the u.s. shrugged off

the most hawkish comments from fed chair powell saying he will keep raising rates higher until they get convincing evidence that inflation is coming under control. we also just heard from charlie evans in the prepared remarks of his speech to be delivered in new york saying that he favors frontloading before moving to a slower pace of rate hikes to get inflation under control as well. we are looking at a pretty good start to trading in asia. sydney futures looking like a gain of about 1%. a market very well supported from higher oil prices, energy names, and some of the commodities names doing well over the past few sessions. the 10 year yield sitting just shy of 3.5 percent but climbing seven basis points after the treasury rose by 10 basis points. the three year yield up seven basis points to just under 3%. kiwi stocks up .7%. we are watching the dollar-yen as well.

really the recession of haven demand we saw overnight could see a call for asian currencies. shery: take a look at what u.s. futures are doing as well. we are seeing the extension of gains that we saw in the new york session when the s&p 500 rose to the one-week high. we continue to see this risk sentiment tilde. we had consumer spending powering ahead, factory production also rising at a solid pace for a third month. and we mentioned u.s. chinese tech stocks jumping. treasury yields climbed in the new york session. the curve flattened after chair powell's remarks. we are watching food -- crude prices as well. they are rebounding in the asian session. they fell after the government in the u.s. announced plans to ease sanctions on venezuelan oil. all these market gyrations have affected emerging economies a lot given inflation pressures with msci emerging markets

falling. latin american markets have done resiliently this year. it we will continue to see what happens as we are live in panama city. this is bloomberg's new economy gateway latin america. we will be speaking with our next guest, president mauricio claver-carone. we will talk about the opportunities as we see commodities prices surge. you're talking about big exporters of grains and critical minerals as well. haidi: investors have been weighing that resilient april retail sales data. those comments from fed officials including jay powell on the rate hike plans. let's bring in our global economics and policy editor kathleen hays. charles evans has a planned speech to be delivered in new york today. in terms of the markets, we saw the bounce in sentiment that seems to spread throughout the

asian session. andreea: that is right. investors were looking for an opportunity to wade back in after the sharp selloffs we have seen. they did that overnight following the strong u.s. retail numbers and the solid factory numbers. that could support asian stocks today. having said that, it did push back those concerns about a recession that we have seen recently. but investors are still trying to digest so many crosscurrents from the war in ukraine to the covid lockdowns in china. and also from concerns about a slowing economy in the u.s. and china. monetary conditions are tightening. the bond yields jumped overnight after jerome powell sounded resolute in his efforts to fight

inflation. this looks that they do get a chance to come back with positive news like we saw overnight and will trade that. shery: kathleen, we have seen markets continuing to take chair powell's latest comments pretty well. but we were pretty hawkish. -- but they were pretty hawkish. kathleen: i think they were as hawkish as the fed says it needs to be based on where inflation is now and their acknowledgment. they started late. making monetary policy in real time. but now we know inflation is our number one goal. our number one mandate. we have to get this done. he says they will keep on pushing until they see clear evidence of inflation coming down. i met the money marketeers at nyu in midtown manhattan.

charles evans is speaking and we got this headline. it's important to look at exactly what he said in his prepared remarks which will start momentarily. there will be questions and answers after that. he said, yes, they have to move. they have to reposition monetary policy and move the rate higher. they may have to go above neutral. but if possible, he would like to see if they can get back to a more moderate pace. markets have to understand the fed don't have a blueprint. they don't know when inflation will come down. and they know that right now, when they look at demand, chair powell said that demand is strong. solid numbers, strong upward revisions in the previous month. people using their credit cards and they have a lot of money in the bank. this is what the fed is up against and charles evans is opening the door to the more dovish side that we will do what we have to do, but maybe we

won't have to be that aggressive. but markets have to realize that we've never been a cycle like this and there is no blueprint. we will have to watch the numbers. that is how you will know what the fed will do. shery: chinese tech stocks getting that lift. what do we expect in the asian hours? this is another way of looking at a bear bounce. andreea: look, the rally in chinese stocks in the u.s. last night could definitely provide support for the chinese markets and asian markets today. china's vice premier came out reaffirming support for internet companies, the development of digital companies. suggesting perhaps the government is stepping back from the clamp down on the tech sector. that has been keeping investors sidelined. and of course, a lot of uncertain investors in china. which is why we saw alibaba and baidu drive up. the golden dragon index and

jd.com coming out with better revenue growth. there is positive news out of china along with the fact that the shanghai is easing on lockdown. shery: andreea and kathleen with the latest on markets and monetary policy. the tech theme will be a big focus today. at the j.p. morgan china summit in hong kong, stephen engle will be speaking to a number of guests from the event in the coming hours. he joins us from the city. stephen: i think what andreea just ran through, some of the tech stories and what kathleen mentioned about the inflationary prospects and the fed tightening cycles are going to be prominent themes in our coverage of the j.p. morgan global china summit, day 2 in hong kong.

we talked to the ceo of asia for j.p. morgan. he said he wasn't going to be distracted by the short-term shocks we are seeing. obviously, what i'm talking about is the lockdowns in china. he says they are long-term. let's hear from him. >> the long-term perspective of the region in general and china in particular, i think nobody has doubts about that. we try to stay away from short-term misery and focus on doing this for the next 25 years. stephen: we will flesh out those thoughts with his china ceo mark leung later this morning. and we will talk to paul uren, jp morgan head of asia investment banking. those comments are quite interesting as well. the vice premier adding to a chorus of chinese leaders coming

out and essentially giving support to the platform and the digital economy in china after what has been more than a year of downward regulatory pressure. what will that mean for underwriting and investment banking at j.p. morgan? he did not give a lot of details in his speech yesterday but he did mention the potential for these platform companies to aid the listing on domestic markets as well as international markets. so a boost for capital markets. we will see if it is more than just a shot in the arm, a temporary shot in the arm. and finally, we will talk all things crypto following the usd collapse and the future of blockchain. haidi: lots on the agenda. let's get to vonnie quinn in new york with the first word headlines. vonnie: the biden administration is poised to fully block russia's ability to pay u.s.

bondholders. a move that could push moscow closer to the brink of default. berg has learned the treasury department will let a temporary exception lapse once it expires next week. that waiver has given russia room to pay coupons and halted -- helped avert default on government debt. china's bond trading platform for foreigners has quietly stopped providing data on their transactions. forces a the china foreign exchange trade system last published overseas investors as trade sunday 11th. it is unclear why the stopped releasing figures and whether the move is temporary or related to shanghai's lockdown. dow jones reports flight data shows somebody in the cockpit intentionally crash the china eastern jet earlier this year. the boeing 730 seven was cruising at high altitudes when it suddenly nosedived -- 737 was cruising at high altitudes when it suddenly nosedived into a mountain. all 132 people on board were killed.

japan's cabinet has approved a next or budget of $21 billion to help households and businesses cope with higher prices. the higher spending is part of a broader package of measures aimed at easing inflation. the money may support the boj's easing plans despite the week yen. figures do wednesday are expected to show japan's recovery is stalling. goebel news 24 hours a day on air and on bloomberg quicktake powered by 2700 journalists and analysts in over 120 countries. shery: still ahead, the war in ukraine is adding to economic shocks for latin america. we will discuss that and the growth outlook for the region with inter-american development bank resident muaricio cl aver-carone. amid elevated living costs and tightening monetary policy, that is coming up next. this is bloomberg. ♪

>> if the economy performs about as we expect, then that is something that will be on the table. and honestly, things are so uncertain in the economy right now, it is very difficult to think about trying to give guidance out into the future. >> i think we will have a second big night at this apple. a recession that is more traditional, incentives where the fed can't bailout a recession and it is tightening to control inflation. haidi: fed chair jerome powell and bruce richards there. domestic growth concerns. losses have hit 100 billion dollars and investors are questioning if all the negatives are priced in amid the market volatility. let's bring in our guest

overseeing $3.4 billion. all of the volatility, some of these worries over the liquidity situation and ease of trading across varied asset classes. are you finding opportunities here? >> absolutely. with volatility comes opportunity. and what we are seeing out there whether it is investment grade reddit, cryptic -- credit, crypto, there is real weakness in situations where investors are dependent -- people are for the first time looking at fundamental cash flows and saying, what are these things worth? they are discounting them based on elevated assumptions on rates and credit spreads. haidi: we have been hearing from jay powell and we expect to hear from charlie evans to talk about frontloading. it kind of presents this cohesive image of a very determined and hawkish fed to

try to make up for perhaps being behind the curve. do you think markets have adequately priced this in? will they create deeper liquidity concerns? dan: i think the stock market in a very short-term sense is very optimistic. what you have seen with the fed over the last two years is they are a day late and a dollar short. there is more talk and less doing. we need to see more doing at less talk. and compared with federal spending, i think we have real opportunity to see some downside from here. shery: what are we seeing in terms of action coming from the pboc? we continue to watch perhaps a little bit more support coming from china, but investors seem to be continuously getting disappointed at this point. are there any opportunities you like across the country? dan: in china, we are very active with partnerships focusing on nonperforming loans. we are primarily focused on real estate in china.

i think there are real opportunities there and we have a very large, trillion plus level type of real estate issue in mainland china. i don't think the approach on omicron is helping that any. i think there will be a really long-term opportunity there to really rationalize the property sector in china. haidi: and you were also involved in small-scale npl's when it comes to hard assets. what are you seeing across that sector? dan: you are seeing the confluence of inflationary pressures and the realization in the commercial real estate sector of the long-term effects of covid. you see a lot of transitional property opportunities whether it is nonperforming loans, discounted purchase offers from banks, banks looking to rationalize their portfolios. we are seeing that weakness beginning in the u.s. and a lot more post gfc opportunities in southern europe going way back.

and as i mentioned, the emerging opportunities available in china and southeast asia. haidi: the energy transition space is interesting at the moment given there is a high level of discomfort for a lot of investor houses. how they managed this transition to fossil fuels and perhaps it is not as quick as we initially thought it was going to be. where do you find the opportunities there? dan: i think we take a longer-term view of what the definition of energy transition is. the realistic numbers out there show you that it is going to be 30 or 40 years before we see a real material transition. we are very involved in continued, appropriate, and judicious expiration of fossil fuels. and on the other hand, we are involved in financing, charging systems, and other means by which over the long haul, an

appropriate level of transition will happen. haidi: opportunities in australia is something that you flagged as well. dan: australia-new zealand. we are terribly active in helping new zealanders get access to housing. there has been a very significant secular shortage they are on the housing front. we found a way to be very active in affordable housing in new zealand. in australia, i think there are non-bank opportunities across special situation corporate investment and structure finance. we are seeing more rational finance. shery: always good having you with us. ceo and cio of arena investors. and you can get a roundup of the stories you need to know to get your day going in today's edition of daybreak. bloomberg subscribers go to dayb and customize your settings so you only get the news on the assets you care about. this is bloomberg.

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>> with the pandemic, inflation in russia -- pandemic, inflation, and russia, it is hard to determine consistency. >> it is hard to determine what china's lockdown will be but we hope the situation will normalize in three months time. >> we're predicting our business plan on japan's economic recovery will peek out and the global slowdown amid higher inflationary pressure and higher rates. >> i would say it is realistic. having said that, more and more, we have certainty moving forward . definitely our performance could be better. >> china has many restrictions for the covid zero policy but

recovery from the pandemic will be a positive factor. >> the time is changing from deflationary to inflationary. japan may be seeing a paradigm shift. haidi: top japanese executives discussing the country's growth path. the are counting down to the start of trading in tokyo and seoul. first quarter gdp set to be released in 13 minutes. we will be breaking those numbers. we are set to get to japan's industrial data for march. and the country -- kishida's cabinet approves $21 billion to help houses and firms hit by higher prices as the government looks to shore up support ahead of the summer election. in korea, a state run think tank is set to announce the economic forecast for 2022. the bank of korea will sell 862 million dollars worth of 91-day bonds. and the career deposit -- korea deposit insurance corporations cells -- sells shares at $12

each in a block trade. it's get a check on the business headlines. twitters board intends to enforce a transaction at a price of $54.20 a share. the comment comes as a statement to bloomberg news. twitter confirmed it is losing three more senior employees, reflecting growing uncertainty while waiting for musk's takeover to close. jd.com log better than expected, 18% revenue growth. but that figure was still the slowest quarterly rise since the company went public as covid lockdowns in china way on consumer spending. sales climbed to $35.6 billion in the first quarter, beating the $35 billion average analyst estimate. stock grew on the news. sea's core gaming revenue grew faster than expected, offsetting a slowdown in the rest of its business as online activity retreats.

gaming is the most profit of division, posting sales of 1.1 billion dollars against a forecast of $930 million. its e-commerce business underperformed. allianz will plead guilty to fraud and pay 5.8 billion dollars after misrepresenting the risk opposed by a group of hedge funds. it concludes an embarrassing episode for the german insurance giant which has agreed to sell the bulk of global investors u.s. as part of a settlement. shery: and take a look at how markets are trading at the moment. we are seeing a little bit of upside when it comes to kiwi stocks, up .8%. sydney stocks are also up about 1%. this after we saw some relief rally when it comes to their currencies, commodities, prices gaining a little bit of ground. nikkei futures higher by .1%.

we have already seen three sessions of gains for japanese equity markets. we will be watching their first quarter gdp growth numbers coming up in just a few minutes time. we are seeing u.s. futures extending gains that they saw the new york session when the s&p 500 rose to the one-week high. it very solid data including consumer spending and factory production. coming up next, fresh signals from beijing that it may be ready to further ease clamp down the tech sector as it battles a slowing economy. we will have the details ahead. this is bloomberg. ♪

♪ >> all right. take a look there at some of the updated revenue estimates ahead of key 10 cent earnings. better than expected growth. but tencent the slowest growing. officials reaffirming support for the industry that has stoked optimism that regulators may be easing the yearlong clampdown across the sector. alibaba about 6.8%. 1.5% representatively. and we are at the highest levels

in just about two weeks there let's cross over to china market correspondent. we had that turn around when it comes to chinese tech. this is providing further support >> yes, exactly. what i would say is it doesn't take much to see the stocks rally. 6% in a day. it does take a lot more to see that the rally holds the key comment from them is that the government vows to support the development of this industry. we're soon on details. this is very similar to what he said in march. again, no plans. how does the government plan to do this? are they going to be any rollbacks of the regulations that we've seen since the i.p.o. was cancelled?

is there anymore coming on the monopoly front. it's been a word used repeatedly. chinese does not support mo top in police even if it supports the business center. it will be a travel and arise situation for these stocks where we saw a 6% gain in the hanseng index, i'm not sure what we'll see. haidi: we saw j.p. morgan upgrade their ratings on more than a dozen tech firms what are investors thinking about the outlook here? >> a lot of questions over that j.p. morgan upgrade. what changes in such a short span of time for a wall street research team to call a sector uninvestable and then say that you should go overweight on these tech stocks? earnings -- it's a big earnings week. we talked about j.d..com.

that was better than expected. it's very good. this is a sector that we had a great story out of the tech team earlier this week calling the sector kind of utility like stocks, single digit returns. single digit revenue growth. if we start to see double digits and resilience from the sector which is dealing with the crackdown but with china's economic slowdown and lockdowns in big cities like shanghai. tencent the loathest we've seen since 2004. if we see a better picture, a better outlook, if management is more positive on the next few quarters, that would be something else to keep the rally going.

hadai: is it enough to create broader exuberance? where are we at in the company sector because that is nearing a turnaround in terms of the amount of leverage that's already been removed. >> yes, exactly. it's a really key moment when it comes to chinese markets because we're nearing a turnaround in basically everything. we're nearing a turnaround in tech. we're nearing a turnaround in the market. we're nearing a turnaround in the economy. when is that coming? when do you start? and are you going to miss out? there is evidence that that's on the positioning front investors off-shore are removing some of those bearish hedges. and on-shore, you see a pickup in margin debt which suggests that people are willing to bet on the stock marriage again, people -- there's a lot of money waiting to come in people want to come in. it's only place the world where valuations were low at the

beginning of the year. when you start to see more money coming in. again, i do think the mainland market will lead. where we start to see the gains filter through, more people will come in nearly a turnaround on nearly basically everything is the best i can describe it right now. [laughter] >> especially if we rely on that fomo for these investors eventually wanting to get to china. sofia horta e costa. plenty more with big guest on day two. we'll speak to the head of asia banking all in the next few hours. let's get to bonnie quinn. bonnie? bonnie: jerome powell said the fed will keep raising rates. he made his most hawkish remarks

saying he will not hesitate pushing fed rates if needed. >> inflation is coming now. that's what we really need to see. we're watching for that if that involves moving past, you know, broadly understood levels of neutral, we won't he is at the at all to do that. we won't. and honestly, we'll go until we feel like we're at a place where we can say, yes, these conditions are an appropriate place. we see inflation coming down. >> china's official is giving a rare support for the industry. why he told system of the symposium that beijing will support the development of tech companies. those remarks reported with state media were short on details but do signal a further easing of the risk.

the package could include weapons finance as much as $100 billion that would make indian one of the largest recipients of military aid. j.p. share holders have rejected the pay package for diamond and other company leaders. share holder advisers were among those in opposition. with -- where they have -- rejected the plan. and the products are not to play for the deaths of two infants linked to a bacterial

contamination. global news on bloomberg quicktake. 120 analysts. this is bloomberg. haidi: we are hearing from mr. evans answering some of these questions. he's optimistic that inflation is going to be under 3%. he's saying that underlying inflation is at about four and four and a half percent right now. we know that uscpi coming through. there's a front load of adjustment the fed front rate, saying that's important to demonstrate the fed's commitment to getting inflation under control and getting the expectations in check. he did say after that frontloading initial period that he's hopeful that the fed can train six to a more measured pace of rate increase. we heard some of the most

hawkish comments from chairman powell saying that the fed will continue to raise interest rates until there's clear evidence that inflation is going down even if that moves past broadly understood levels. they won't hesitate at all to do that. we're hearing some gauges as to what it will be at the moment as well as going into 2023. charlieer san francisco the chicago fed saying that optimism that is going to come under 3%, cherry? >> sherry: it led to people thinking that perhaps it will start to hit consumers. when it came to data u.s. retail agree grew in april. they remain resilient despite the surges in price. but the c.e.o. bruce richards telling "bloomberg now" that the

fission aren't telling the real story. >> consume sore not buying more the con um sere walked out of the stores with less. but they spent a lot more because the prices were up a lot. take this for example, because retail sales are not inflation adjusted. it's just an absolute nominal number. c.p.i. showed that month over month airline ticket prices went up 18%. imagine because the ticket prices are part of your retail sales. imagine if there's only one item that you have in your entire retail sales and you're flying from new york to l.a. and it cost you this month 1% more. you have the same exact numbers, but it's not sense cal to think that retail sales are doing better because it's not. what you saw in home depot and amazon is that inventory is

built around 20% to 30%. that es a scary concept. they built and they sold less but yet they reported more. and that's why they're going to get hit in the con summer second tonight consumer debt has exploded upwards. people are borrowing more against the home. as you point out, in the survey it plunged from 159 where it is now -- >> ok. consume sore not in a good place that's your takeaway. yet we see it jump two basis points. inflation is high and they can say the consumer can hold in. if you what you say is true, what kind of policy mistake are we headed for? what does the economy look where you see it already struggling. >> exactly

the mistake was already made. the fact that trillions were dump into the system through the various packages. and bernanke said it well. he said the fed waited way too long. and now the pain is going to have to come. there you have the fed has two forms. they have six or eight to go. treasuries have moved nicely. 150 base points. and the high yield market widened a few hundred basis points for a couple of hundred base points. high yield has gone to a more reasonable high yield of 7:00%, 8%. there's heavy volume in the last couple of weeks, and so there's a lot of capitulations. markets can move into this bear market rally which we're entering right now. it's a bear market rally

but the best is yet to come. we've lost $25 trillion in net a-- asset value. so the fed has no choice. aand to start the take it program which will start next month. >> bruce, chairman and c.e.o. speaking there with alex steele. split more to come on "daybreak asia." this is bloomberg.

>> china has been a great benefit to some latin american countries. we've seen lots of trade, the biggest trading partner for many south american nations. they -- their manufacturing

sectors are disappearing because they're competing with exports. there's a cost. >> shannon o'neil, senior fellow on the council on foreign relations through china's slowdown in latin america. she spoke to us from the forum in panama city earlier. we are tracking the fallout of the supply chain crunch. global inflationary pressures especially in food and fuel have hit the biggest supermarket chain. wal-mart slashed its full year profit. and heat waves in the country are withering food and concerns of supplies away from traders. they are pushing prices up to the highest they've been in two months. suppliers and c.e.o. of agra holdings says that ukraine's

agriculture production may fall 30% to 40%. and that 2023 will be very bad. >> taking a look at wheat price. we are seeing those concerns with the water globally not to mention the war in ukraine sending prices soaring. those at the highest in two months. they have not eased much. bloomberg terminal users can read more about those storys in our newsletters. one of the key supply issues is china's covid lockdown. they punish curves that confine millions of people to their homes for weeks. here are two bloomberg reporters that have been coping. >> this is first time living outside in 53 days. it's exciting to be confined to

my compound for such a long time. you can see tell people around me are also very excited. the city is tend actively unwaiverring on a punish lockdown that has combined millions of homes of three weeks. a milestone needed to start online. but many restrictions remay i had to get a pass to live my compound and can only do so by bike or by foot for four hours at a time every few day. behind me is a long line of people trying to get to a supermarket. it's not easy to buy groceries. so this is a great opportunity to get something. i'm near the shanghai district. it's not a ghost town. but you can tell it's really quiet. >> this is allen. i'm in shanghai, but i'm not as lucky as charlie.

i'm still on lock down even then if i , do i'm able to live my compound. by probably won't live more than once in a every five days. there's only four hours at a time. so it's quite limited. there's a nearby mall. and i've been told that i need a special permit to enter the shops. some of the shops require 48-hour test results. and i will see a return to normalcy until june. >> so i'm in my own personal zoo here just looking out. i can't get out but let me see if there's anything going on outside. there's snack store in the corner i usually go to. >> still closed. the lockdown is supposed to be ending. not many people are walking around.

>> and we continue to watch the latest comments from charles evans speaking in new york right now saying that he's optimistic that inflation will be going to the under 3% in 2023. he says the front loading is pretty much in process of the moment. and that he thinks it's consistent with the federal reserve achieving their mandates. this, of course, as he continues to talk about underlying inflation arguably at around 4% to 4.5% at the moment heidi. haidi: take a look at the first quarter j.p. number within the contractions of 1% on an annualized basis. this is better than a 1. #%. breaking it down. we see quarter on quarter, contractionses better than a 4.0 of a percent.

let's go to j.p. rising. beat expectation. private consumption was unchanged. estimates were for a full day. when lookingat at when it comes to export side cutting. 0.4 percentage points that is also slightly better than expected business spend seeing a modest rise of 456 a percent. not as much as we expected. we have been looking for a shrinkage. we had strong expansion in the fourth quarter of 2021 as we saw virus curbs drying through and to contain new virus cases that is clearly being seen when it comes to the private consumption cases. high construction and causing some of that inflationary pressure as well.

certainly, we are seeing from some of those gauges that the numbers are slightly better than expected. we are also getting some of that breaking news from shanghai as well where they found far fourth day knowing new covid cases are outside of quarantine. you saw it a little bit earlier the gradual easing of some of the restrictions in hang high. >> we do have more on daybreak asia. this isberg bloom.

>> the deal close an embarrassing episode for the german insurance joint. they agreed to sell allainz as part of the s.e.c. netflix is letting go 150 people. most of those employees are u.s.-based. they lost about 200,000 and expect to lose another 2 million in the current period the company employed more than 11,000 people at year end. the boom in oil prices, and what could be one of the world eats

-- world's biggest listings this year. they're working with morgan stanley and goldman sachs. it could be tense of billions of dollars. >> when it comes to japan, it's spending $695 billion to start the plant in 2024 to make power chips. also air liquid toyota partnering to develop the use of hydrogen. and in south korea we'll be watching the crypto related stocks like cacao. and we do have more coming up from panama city especially this conversation with the president of the inter-american development bank. this is bloomberg.

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♪ >> welcome to the -- daybreak asia. >> i'm haidi. asian markets are just opening for trade. our stop -- top stories this hour. a strong day of retail sales and factory output. markets are outweighing their the most hawkish statements from jerome powell promising to tame inflation. be plus, beijing making a public show of support for the internet platform. >> i'm steven engel. on day two of the global china summit here in hong kong, we're talking the metaverse and block

chain game with ana moka, co-founder yatsu. >> we're seeing japaneseer quities coming on line they're being led by materials financials and communication. leading the declines. we are seeing the japanese yen holding steady. still a little bit away from that 1 pro-level. we see seen the japanese yen fall as u.s. yields resume their climb. it has helped with 2.45%. we are continuing to see firmly anchored away. we did have the japanese first quarter j.d.p. numbers. it was a contractions of 1% b it was a smaller contractions than expected. take a look at kospi.

a second session of gains for the south korean stocks the korean wan is gaining ground against the u.s. dollar an leading the declines that we saw in the previous session. we have seen shanghai really reporting no new community case and again for the fourth consecutive session. that is really helping sentiment. we have to put the caveat that the korean wan is very close to that, to twine low. haidi: still quite a bit bit of fragility. that's not getting much of an assistance when it comes to the surge and that weak nbc the dollar. take a look at how we're seeing the first few section seconds or so in australia really strongly this year from the material sector. as well as continued gains across energy given the push

hire that we saw in crude. we're seeing stimmed trailian stocks trading. we see similar moves when it comes to data treasury with yields continuing to rise in this session where we're not seeing that correlated to a downside forer quities. taking a look at treasuries and that seems to be stabilizing. we had hawkish remash from fed chair powell. and they're favoring front loading to get inflation under control before moving to a special place of tightening. s.e.c. futures we are seeing them up at the moment and we see some respect including the risk currencies like the aussie dollar. our next guest has done greater

china. let's bring in minishi ray charles. are you comfortable still with that given that it does seem like we're seeing signs of a bombing when it comes to the -- the regulatory crackdown, that's. >> the proximate news is clearly positive. you know, we have seen hang hydra wally moving to where it's it's -- we've seen positive news through about the regulatory pressures on the tech university. >> so i think you know, that's in the near term, we will have some outperformance from china. and that would possibly pull up the sentiment as far as entire creation equity investment. having said that in the plead yum turn. i think the big concern one would have about china is slower consumption. for example.

that his decline precipitously if we look inside ternings estimates of human discretionary healthcare, they have been a tsenger secular defining task -- they have been a zest secular defining task. 6.1% in april. so when we put these into consideration, i think you know, some -- some more underperformance from the chinese equity that's in the near term could still be on the card. haidi: where are you overeight? where are you seeing opportunities and comparing valuations and perhaps some opportunity to provide from fir volatility. >> the miami themes we like in asia are number one, the yield

acent or the asia banks. number three, it tends to gain from consumption demand from western he misfear and the decline. many of them are currently moderation ben fish areas. and third, the entire energy and material complex because we think ha the spite in prices is likely to last for longer. >> the country, are the market is that we're overeight in our career, indiana, indonesia and. we are to using can on financial and tech. india is more of a tricky story as far as the mama crow is concerned because of the pressure. and the oil importing nature of the mark. but there are top choice there is are abundant. they're getly. >> tell us more about india because that seems to be

contrarian especialably the challenges >> true. indiana is a bit tricky. the rebound has been sharp. if one looks like on the ground variables like india are the tax collection. there are consistently surprising on the upside. but having said that, the pressure on the currency as a concept of fed rapid tightening and indiana's all important has expanded the trade deficit. those are the two significant concerns. fortunately in indian you have one sector which is i.t. service sector. and some of the other sectors like financials we have have had a significant degree of easing,

difficult degree of decline. some of these broad are looking better than they were, earlier. >> you mentioned south crime and when we're talking about depreciate concern six we have seen the pressure on the korean wa. we are talking about 2009 levels. because they're a big exporting company. do you see that as a net positive or could there be other site effects that investors are not watching. >> historically korea as under performed when the currency deappreciated. >> there time around there have been a multiple departure. and we think that it could depreciate some more. we must remember that the fed come actually hike three times more by 50 basis points each until september and from june, we are going to see q.t.,

quantitative tight. then we had seen. in 2019. pressure will continue with that said, you know, i think there's career, i think the tech sector's mouth careerly beginning to avoid. we've soot the last tex exporters. the banks are continue to outperform as a consequence of the yields moving up. it is -- tried and tested. as far as the expectation is concerned. >> yeah, we're seeing that strength today at 2:67. >> good to have you back as always. now, let's get to vonnie quinn with the headlines. vonnie? >> thank you. the biden administration is

poised to fully move moscow closer to the brink of default. >> the treasury department expires next week that waiver has given russia room to pay coupons and help to divert them on the government en. japan's gab nat has 26 -- coming up with higher price. the broader package of mothers used to's the plan of innation. first quarter growth figures do later are expecting but japan's recovery is stall. >> avid nutrition and other baby making major formulas have greed come on the eat >> he has been out gauze dew to the maybe shut down of his babies.

links to a bacterial contamination. china's top economic official has given a rare public show of support for the tech industry. said that beijing support the develop program. news, remarks reported by j.p.d.o. does come with a regulatory risk. >> i'm haidi quinn. this is bloomberg. haidi: we'll be sitting down with the c.e.o. of the latest block china company. and now talking through the recent volatility in crypto. >> co-founder and executive chair will be joining us. shanghai slowly emerging from its punishing -- lockdown.

and we'll look at that. this is is bloomberg.

♪ >> inflation is coming now. that's what we really need to see. so we're watching for that. if that involves moving past, you know, broadly understood levels of neutral, we won't hesitate at all to do that. we won't. honestly, we'll go until we feel like we're at a place where we can -- where we can say yes. financial conditions are an appropriate place. we see inflation coming down. >> fed chair jerome powell.

let's bring in global editor catheline hayes. such an important time for this conversation especially how hawkish chair powell sounded. >> >> well, you know, i think he's hawkish but not more hawkish than he has been really. he said very clearly we'll do more if we have to to get inflation back down. but he's made it clear that in the path we're on. now, i think it's interesting that charles evans who is president of the chicago fed is known as the dove said that yes, he thinks the fed has to get to neutral. and that he considers that's 2.4 to 2..5%. definitely have to reopen copy. cop -- koppi. this is not like deutsche bank

or others saying 5% or 6:00% is where they have to get the fund rates two. inflation is a problem. we've got to bring it down. we know -- it's going to cause a thing. but -- he thought by the end of next year, it's going to be down to 3% or less. the supply chain issues they have to fade. all kinds of prices. they all come double and then there are other things that are going to flatten up and ease up. it's interesting that he said the word "expeditious." he said we're going to move expeditiously. that word is like measured tape or you know, the kind of things that were saying during the pandemic. but anyway, interesting to hear a doveish side. i think they're prepared to.

conditioned there is a part of the fed that is not open as the most hawkish one could indicate. >> >> shanghai is unramming a personning look that confined millions of people to their home. but it's covid-19 outbreak is coming under criminal. over in beijing, the case arises as the capital continues to add restrictions. so john, let's start up with shanghai. four days with no community transition. when we talk about the lack of restrictions, there is lots of restriction. before >> people limited to exiting their compounds. lots of limitations or movements do. >> this is going to be a long process, highy. the government is saying they're trying to get back to something more normal by the end of the middle of june. we're about a month off of that period.

so very official stages right now. some of our colleagues saw them for the first time in two months. but when you live the compound you can't get a car. you have to go by foot or a bike. and you can only live once every four times. >> you have to stand in line because there are lots of other people trying to get there as well. >> oh, wow. -- still we have seen some market turbulence because of the market lockdowns. a little bit more risk on sentiment, given that we are expecting some of those restrictions to be eased. they have stond -- stopped reporting it. >> there have been foreign investors have been setting it out in the chinese bond.

we got the data for the month of april which shows we have had overseas investors for three consecutive months that would be the longest stretch since 2015. what we have not been getting is the daily transaction data for overseas. we don't know on a daily basis what those holders are doing. >> i think it's suspicious and they're second off for capital living the country because of the economic situation. even though markets are starting to hold up. maybe things start starts to get better. >> of omicron being so transmissible, there's ails the short of additional coming down the pipe. >> what are we seeing when it comes to the trend that case show and the potential for more restrictions? >> so beijing has had an increase in casessed to.

it's not been a substantial huge increase. so far, the restrictions of much of beijing pales in comparison. but we could still live our apartments. we can live our compounds. but when you go outside there's a handful of taxis. most stores are closed. and public venues largely off limits. there is texting every single day. the big concern is how long they will remain in this situation for the animated basis. and the impact on the economy will be. >> john liu. everything that happens in china has great implication. the economy it's the highest has been in 15 years. that's from the shocks of the pandemic. but also the russia, ukraine war.

and several banks have been discussing the economic prospect with the president of the international development mass. it's greet have you with us. you're in panama city. >> no better place to be. >> good to mete beat you in tern. >> of course, as i messagessed inflation is a big problem and central banks are tightening really, really fast at the moment. >> where do you see et coming from? >> -- it coming from? >> we've seen as appear pose nod twight, the reason they've been ahead of the curve. and you think it's been gradual. the central banks in the region is are ahead of. it. chile come bia. d.r. and other countries. so they learn the lesson not to get caught up in the tail end of

these interest rates rises. and i don't think there's an economic that argues that the bra salient currency is undervalid. >> in regards to growth, i think there's a great opportunity. the growth the interow john. we're going the break for it. and guess what? here in panama it's 5%. hey, two, or three%, but you're going to have five or 7% growther growth. of the supply chain breakdown. about o. which i'm fortunately for all the wrong reasons. but i'm really creating an opportunity for investors to recal late brake brick. >> whoa tease outlook? >> it's 53%. that's last year. and they were whoreably wrong. are they able to take advantage of the supply chain disadvantages and try to move

that to near shoring in better terms with the u.s. >> well, look, we've been talk -- we've been walking the whack. last year we did 4 be helping companies moving from china to lay tin america. >> the's not a day -- i said 90% want to regional liesed. to regional days. that's a huge doesn't the years are decades of lack of investment and strainings por tags. but the risk is totally different than it was because of the shutdowns in asia because of the war, russia's war in the unit ukraine. so there's an opportunity yet here. if we have understand es nest necessarily seen a clear nation and flame works.

how washington live the approaches of these nation. right near the biden administration. >> i can't speak for the united states government. and i can speak for us to be first american. we had a record year. and guess what? it was almost all american companies. >> penal say we continue t do it without the chinese. that's actual a total package of -- you want -- u.s. investors see that opportunity. we're creating a whole new model 2.0 which were originating where derisking. and we're distributing portfolios. >> so what are you expecting to do in terms of loans this year? what the i'm the first one to beat him 20 billion. and i a been saying we sate to mobilize 40 cents.

brother wine go brick it to to dollar. 25 building are going to be -- maybe the 30% with? >> career creating the models to create a few mobility zation bank. >> and we're going to make it happen. >> does that mean logistics? >> across if board we're seeing the opportunities across the board. hey, look, it's not just about china. it's a pro-america and dakar bean. i don't want a country to look at -- or look for services. before it looks at the chi bean. look how intel has transformed or neighborhood here. in costa -- these are very real. and for the first time in 30 years, you have the rhetoric matching the realm. for last 30 years, investors were looking at the free tract trade. for the first time, the

political reck rick. >> in 2 the submit of the americans what sot of talked about about a more raw trace framework for not in america. that's from theist. we haven't seen that. are we going to see that this time around? >> some of the u.s. government. , i guess the effort. and i'm very personally invested in that they had to be successful. how these suck mitts are political and the mistake a back seed 'em day by day every every day in our work. that's why we have record breaking here. and we're taking advantage of these opportunities. but the region itself also has to have good policy of integame >> integrate grace has been ankle levels. >> of 60% of all trade in europe

is interregional. 50% of in urine. we lose $20 million because of it. 15 seconds because you took the health of the i.d.p. has china'd grown or policy? >> policy. and that's what we're focused on. >> always good talking to you. thank you so much. greet see you in person. interdevelopment american back. coming up next, a lineup of gast would -- and show how latin america can drive innovation and creates jobs. >> do stay with us. >> this is bloomberg.

♪ >> the australian stock we have a 0.5%. previously we had a gain of 0.3%. and that has been reifies vised down slightly this is the broadest leading indicator of economic growth. it has contributions from stock market gains when it comes to expectations from industrial production commodity price, well, approval as well as monthly hours work in terms of the reflection of the labor market. it is a broad cage of growth for the next six to nine months. super interesting particularly as we go into the election where economic growth, the management of the economy as well as household and business cost and

the wage growth not keeping up with that as well as a lack of affordability really top of mind for voters as they head for the polls. we are seeing 1% extending in the gains. we see material and energy really leading those gains. the aussie dollar seeing something of a rebound really. the u.s. dollar seeing that broad based weak nbc the previous session. despite a more hawkish term from the fed chair. the nikkei is at about 1.4%. trading in new zealand by ant 7 of a percent. asia pacific up by .8 of a percent.

vonnie? von y: the fed will keep right interest rates until there's clear evidence that inflation is cooling. powell made his most hawkish remarks saying he won't hesitate pushing them past neutral if needed. price ability is the fed's top priority. >> inflation is coming now. so we're watching for that. if that involves moving past broadly understood levels of neutral, we won't hesitate at that to do that. honestly, we will go until we feel like we're at a place where we can say yes. and the appropriate up with is to see inflation coming down. >> and we reducing new delhi's rush on arms. that would make india one of the largest recipients of military

aid behind israel and egypt. china's main bond trading platform has chi tally stopped providing data on the transaction the trade system last published daily trades on may 11th with the data showing top forms. dow jones reports slight data shows that someone in the cockpit intentionally crashed the china jet. the boeing 737 suddenly nose dived into a mountain. the report said no mechanical issues were found with the plane. all 132 people onboard were killed. global news 24 hours days on air powered by 120 journalist and analysts. this is bloomberg.

haidi: the china summit is in its second day. let's go to hong kong where steven engel is standing by with our next guest. steve: good morning. we're on day two of the global china summit our first guest is yet siu, he's the executive of this company. let's talk about talking about the turmoil that is gripping the crypto currency space right now. how do you see this turmoil different from what some have described as the crypto winter of 2018 when it crashed. what is your outlook for the crypto space given the turmoil

we're seeing on the markets? >> i think the turmoil from four years ago is very different from what we see today. one, i think people may have forgotten bit coin was like $3,000. etherium was at $100. one of the reasons for that is that really back then the activity in crypto was purely for speculative. n.f.t.'s wasn't a thing. the whole eco system had matured and it is more contained. and we haven't had broadly even though there's a reduction in prices have impacted bit coin or

etherium in terms of the block chinaing capable. -- block chain capable. -- ability. but people are going into other coins. and they're continuing to build. the number of people were building and constructing in spaces far, far greater and the economic opportunities for people building is there as well. so it's much more stable than before. >> well, we can talk a little bit of terrausd do you think there could be the positive impact that others can see the algorithmic failures that led to the depegging of the dollar and find ways to prevent it from happening to them. we've seen other stable joins this problem. >> well, i would say that the other stable coins don't have the same problem because they're

backed. i think it was an attempt to depegoterate which failed. circumstance is backed to the dollar, for instance. the difference is that it was an algorithmic experience to create a purely backed. so i think you could say that the model of uft, the algorithm worked as planned but it was a faulty design, shall we say? that's the difference here. understand like tether, it's the impact for ust stetter which was korean contained as opposed to the rest of the world isn't widely used. very few investors are done in u.f.t. it's, you know, it's because

terra is a korean ecosystem play. so i think there will be more impact in the korean market. there's going to be short of shock waves there but from a global standpoint we don't see it having much of an impact certainly compared four years ago. it's not -- i wouldn't consider it systemic or anything like that. >> how do you see the flow of venture capital money into the space into your company as well? we have investments by k.k.r., george sew rows and many others. we've seen it go from a unicorn status to $5 billion there's another round of funding coming down the pike that's rumored that could value ememoca of $10 billion. does this turmoil in the market make some of the big venture capital funds kind of take pause as well in because we've seen some of the v.c. backers of

those coins that have faltered being kind of pressured to backstop those losses? >> so i think the space continues to grow broadly speaking. naturally when there's the market downturn there's hesitation, i think we're not talk about specifically in crypto. but there's a macro factor that people are cautious. people continue to invest quite actively. we think this as a buying opportunity frankly speaking because our lens is not the next six months but what happens 10 or 20 years down the road. if you look at the -- during the dot cm, there was a great buying opportunity when that happened. but it's not comparable. when people talk about sort of look at what happened to one of our axem infinity, it's a very

different calculus. these companies are very sort of very well sort of financed, right? n.f.t. sales have continued to do well. that's the other thing. we just completed phantom galaxy $20 billion which is nonfungible that people can play in the metaverse. we announced that literally yesterday so the space continues to grow. but of course, it's going to be a bit of a shakeout for those that are washington players that is always the case. you know, so i think in some ways you could say it's somewhat healthy but the space continues to sort of grow because we expect billions of people to eventually get onboard. >> can you talk about what the space is going the look like in 10 or 20 years?

>> would for instance be supporting protocols as an example or even layer one or layers twos. it -- aids in the nonfungible tokens. most people didn't know what an a.f.t. was. so we had to invest in company that could help quote that. many sort of more household names today. the fact that they were early

companies. it's we think that -- we think that most of the world will be onboard. we can't live without our instagram or facebook or wechat whatever that may be. except that we don't own a stake in any of that. we don't have a say. so the whole point is that we have ownership in that. we have the able to have a stake and a voice in that in the future, that's what we describe as the internet of ownership. that's the big impact. and they get paid for their time. they get paid for their data. there's no reason to sort of go for, i guess sort of an inferior model not respecting sort of the time and contribution that we bring to all the networks today which is not rewarded at off we spend time on facebook and facebook doesn't pay us for any of the time that we spend despite the fact that we have so

much value for the facebook. if we stop using facebook what, is the value? nothing. we are free value for facebook. >> i stopped using facebook that's on a broad sense. thanks a lot. as we come from the j.p. morgan global china summit haidi, i'm going send it back over to you. haidi: still ahead, we speak of the c.e.o. for oher empower more women this to drive innow vacation and create jobs that's live next from panama city. this is bloomberg.

♪ >> the pandemic and innation nair pressure has been affecting -- inflationary pressure has

been affecting women across latin measure. joining us now is diamond correa, c.e.o. of por mujer. tell us what's happening to women and the economy and the recovery. >> yes, of course. it's a pleasure to be here. thank you for the invitation. actually women in latin america face a huge inequality. and with the pandemic it was more visit to believe the public. but if you can see in latin america today, 50% of women only participate in the workforce market. and instead, we have more than 69% of men participating in the workforce. on the other hand, you have always in latin america, women, we have been earning much less than men actualfully the same

position, -- actually in the same position and in the same organization, you have less income for women of about 20% than men. >> what if they want to start businesses and make lives better for themselvess? >> yes, it's very difficult for women to access finance. actually 70% of women entrepreneurs don't have access to the need finance to develop that company so there's a huge -- a huge need for women to access this finance and actually por mujer, we have been giving this service to women especially low income for women, also health services because if you don't have healthy women, they won't be able to achieve their objective. and also the training because it's not only giving the money, you need to teach them how to

better use those funds they receive. >> how do these women access all of the services that pro mujer provide? >> we have offices. we were born in bolivia in el alto we have more that 40 offices in bolivia. we have 40 offices in argentina, in mexico and nicaragua. so anyone who approaches the offices of pro mujer will receive the services. besides you can go to our website, promujer.. org and you can access services too >> how much of the loans have you provided and what are your plans from here? >> we have provided $4.4 billion in latin american in very small loans but on average they're about 80 hundred dollars.

but we have been working in latin america providing more than 10 million health services training more than two million women, and each year we reach more than 200,000 women. >> how -- dash is the ratio of -- how -- what is the ratio of women defalling? >> of course. the pandemic was a huge impact in the low income women. and actually we were trying to support them in this specific time. but additionally, women are better payers than men. the before rate on average on pro mujer it has been about 1%. 1.5%. it went in during the pandemic, of course. but we work very close to women

so we try to always understand what's going on in the life, how we can support them. how we can actually work with them to repay that loan. >> it has accelerated immensely is that affecting your operations or the businesses that you're funding? >> well, actually, we ran to digitalize most of our services. and today, we launched black funds to support women. we launched a new program action platform that gives resources to those women that want to develop their companies. we deployed pro mujer digital, we are been able to provide those loans in an additional ways. we provided the necessary tools to reach the women in the digital mode. >> it was really great talking to you, helping women across

latin american, c.e.o. of pro mujer. >> twitter intends to enforce the deal and close to transaction of the agreed price at $54.20. it comes to bloomberg. bloomberg is losing three more senior employees while waiting for puckses takeover to close. aramco is considering one of the biggs listings this year the state controlled company is working with banks including goldman sachs, j.p. morgan. the valuation could fetch tens of billions of dollars. gaming review grew first and upsetting the rest of the business. gaming sees most proable

division posted sales of $1.1 billion it's e-commerce business however, underperformed. j.d..com logged better than expected a revenue growth. but it's the slowest rise as covid lockdowns weighed on consumer spending. sales climbed to $35. # billion beating the $35 billion analyst estimates. alongside text stocks jumping. this afresh vals to support the industry from china. we start off with the statement from leo and whether we will see the text stocks rally and the question is the sustainbility of that rally. >> yes, that's the major question the comments offered no real context and nothing in addition

to what was said in march. but again, another show of support. it reinforce it is point that this sector will be important when it comes to lifting -- listing economic growth. and they're the top economic policymakers. the meeting had involved c.e.o.s from tech companies like j.d. we saw those companies reporting slower growth. that's going forward. will suggest that that's this sector can grow that revenue. it won't be the utility like that analyst predicted. it's no longer a zero growth industry. how long will it last? we saw 6% last season. there was some expectations that would we would get clarity on how china intends on making the sector important to economic growth. we didn't get that. let's see if it will last.

there's a lot of distrust in the. no clarity might be adisappointment. we could see a travel and a rise situation where the stocks dropped today. >> sofia, how much of what happens in chinese marks right now depends tensend reporting lateer? >> i was looking what the option market was expecting. some people were buying bullish yesterday. i think the -- the news that we got from j.d. sets it up for a better than expected quarter for the industry because expectations are so low. the earning season could provide an impetus. but a lot is dependent on policy. this is not a market that's going to move on what the pboc does. what china inc shows us. the indications from the government on what the path forward is after covid zero what

the path forward is after regulation on the tech sector. and any clarity we could get on those fronts could do a lot to lift sentiment. but we are seeing some positioning that's hoping for a recovery in the market. >> our chief china corn there. we do have plenty more when it comes to the lineup of guests. day two of the j.p. morgan summit. and our next guest yo -- uren. investments in china has been the worst they've seen in nearly 20 years that's also coming up. that's it from "daybreak asia." stand by for bloomberg market. this is bloomberg.