♪ haidi: group morning and welcome to "daybreak: australia." i am haidi stroud-watts in sydney. shery: from bloomberg world headquarters in new york, i am shery ahn. top stories this hour. a volatile session on wall street is the latest fed minutes give no indication of a more hawkish turn. haidi: china's premier wars the economy may be worse than in 2020, as he holds an emergency meeting with government officials and state owned companies. shery: guggenheim scott minerd sees bitcoin tumbling to $8,000, saying cryptocurrency markets have become a bunch of yahoo!s.

haidi:. haidi: we speak to the yuan food and culture organization as a rising food protectionism threatens to worsen global inflation. shery: u.s. futures muted at the open after the s&p 500 gained ground on today's session. we were firmly higher in the afternoon session after we saw the fed minutes. you had consumer discretionary and energy leading gains. wti above the $110 a barrel level, this afternoon had u.s. fuel inventory data. the nasdaq 100, we saw the outperformance on growth stocks, tech leading the gains. a mixed picture when it came to treasury, the 2-year yield rising to was that 2.50 level, very sensitive to policy changes. the 10 year rate fell today, as we begin to see the market pricing confederate hikes. but perhaps less aggressively. look at the chart on the bloomberg. we have seen expectations starting to fall. after the fed minutes today, it is no longer a sure thing that

we will see a 100-basis point point hiking in the two meetings, according to traders. still, the s&p 500 fell despite the less hawkish expectations about the fed. this signals how concerned the markets are about the economic growth outlook. still, when it comes to the fed and the fed minutes, suffice it to say we continue to see members being firmly on the cap that we might see two half-point hikes in the next two meetings. they are not happy with the price pressures that we continue to see. we are seeing from the fed minutes that they are aiming to bring the target rate to around the 1.75% to 2%, or the lower end of the range of the neutral rate. participants feeling that the restrictive rate might need necessary universal agreement on the fact that inflation is just

too high. haidi: speaking of two half-point hikes, this is what we got from the rbnz this week. really interesting, because it continues to signal that the priority is getting inflation under control. even as there are other domestic factors that may complicate economic recovery. the rbnz, this is the first consecutive 50 basis point increase since it was introduced in 1999. it will take the tightening turn 275 basis points since last year. inflation was sitting around 70% this quarter and they don't see it going back to 2% until well into 2025. also the bank of korea, they are expected to raise rates as we see the expectation of slowing growth for that economy. it will be another indication that the central bank governors of these banks have really committed. perhaps they were behind the

curve, but they are at least trying to get on top of the inflation problem. shery: let's discuss this with our global economics and policy editor kathleen hays, and also with andrea papuc. kathleen, what did you get out of the fed minutes. what was the signal for you about the future policy move? kathleen: #1, the fed has signaled what they are trying to do. federal reserve officials see a 50-basis point rate hike in the next two meetings. these are the minutes from the fed's may 3 and fourth meetings. for example, they said all of the federal open market committee were supporting expeditiously moving back towards neutral rates. most participants -- not quite everybody -- but most of them, were looking at the 50 basis point increase in that range in the next two meetings. they said that expediting the

removal of policy accommodation, in other words, raising rates, would lead them to look at policy firming and how much economic development warrant more policy adjustments. this is the thing, we have to be nimble with policy. the fed has not been saying -- they said this is not underactive consideration. but that is confirmed when you see the meetings. raphael bostic said a pause might make sense if inflation starts cooling off. james bullard two weeks ago saying he sees the potential for rate hikes as early as 2023 if they succeed in bringing down inflation. so they have this hopeful sense of what could happen. they are also talking about the balance sheet reduction. everybody agreed they have to do that. they have a $9 trillion balance

sheet. on june 1, they will start with reducing mortgage-backed securities. no surprises in here. just confirmation that what they have been saying publicly is what they have been planning to do. hats of the communication of the fed folks. haidi: and that prospect of a fed pause, perhaps not as much hawkish nest as had been feared, will drive gains today, andrea. andrea: it looks like it. i think the market reacted to what was in there, this idea that they could be more flexible going forward. the fact that they didn't sound as hawkish as some have expected from them, providing some support for equities in the u.s. last night. looks like it will lead to a

higher asia open today. overall investors are used to the idea that we will get two fed rate hikes, 50 basis point. but this talk that perhaps there could be a pause there is providing some support. but in an otherwise very volatile environment for the market, we are looking at potentially slowing growth. the war in ukraine going on, full lockdowns chemchina and the slowdown in the chinese economy, these continue to be challenges for the market. but investors are looking for an opportunity to come in and buy those dips after this very steep declines and valuations being cheaper. they definitely took heart from the fact that the fed minutes were less hawkish than perhaps had been expected, and that there may be a pause sometime

soon. haidi: kathleen, we have the growth forecast for china falling left, right, and center. what are we hearing from the premier? kathleen: this was another big announcement from china's premier after he had his banking announcement and his tax cut announcement. he assembled thousands of government officials and hundreds of government-owned companies and bankers to tell them that it looks like maybe things this year, with these covid lockdowns, are looking worse than they did even back in 2020. here is an important thing he said in his statement, "economic indicators in china have fallen significantly, and difficulties in some aspects enter a certain extent are greater than when the pandemic hit us severely in 2020 20." remember, china's economy grew just 2.2% in 2020. now the government says their target was 5.5%.

but already, bloomberg economics is looking for 4.5%, others have cast their forecast lower when you look at the gross domestic product framework right now. in fact, there jobless rate is up to 6.1% now, the highest since february of 2020. we saw industrial output fall for the first time since 2020. goldman sachs and others say this is not surprising either. all of the week numbers coming out in april are just increasing the urgency of the government to do something. li is i think trying to push back against this view that maybe the government is not doing enough. that newspapers are talking about how much xi jinping has done for the country, how successful they have been, how well the covid zero strategy is working. but again, lots of steps being taken and announcements and meetings, is probably not going to change what growth is doing right now, and that has got to be the china government's true

worry down the road. shery: goldman sachs also saying that perhaps this is acknowledgment that there will not reach the 5.5% growth target for the year. so given all of this news, not to mention the rbnz's very hawkish turn's and the bok potentially hiking today as well, i am not sure we will see positive sentiment in the markets today. what are you think? andreea: this is going to be a very interesting the bok meeting. it is the first meeting for the new governor and he has made it very clear that he will follow his global peers in raising interest rates to raining prices. so we can expect -- to rein in prices. we can expect they will do this despite having hiked rates four times last summer. prices are not coming down. inflation continues to be a problem again korea is

everywhere else. they are going to do this and this will lower economic growth. the new governor has said that inflation is his main concern, like everywhere else. at the same time, they also have to look at the fact that the fed has been hiking more aggressively, that is going to be a factor. like everywhere else, he is working a very fine line between inflation without doing economic growth. -- without derailing economic growth. haidi: kathleen hays, with over asia cross asset editor andrea papuc. that's good vonnie quinn with our first word headlines. vonnie: china has published several beijing city officials over their handling of two covid clusters. one statement said that unofficial was one for not properly supervising various

prevention work. eight others were punished for lying about their movements. beijing reported 47 new cases on wednesday. separately, another port city has locked down a district in its center to tame a recent flareup. russia's defense minister says it is opening sea corridors for several ports after gaining criticism for triggering rising food prices with its blockade. several ports will up or it during an 11 hour window each day. however, shipments may take time to resume as mines are cleared. u.k. prime minister boris johnson says he was "appalled" by recent findings into a probe into alleged parties at downing street. the probe was seen as a threat to his political career. he called the behavior of some staff unacceptable, but he is also urging people to move on from the so-called "partygate

scandal." sri lanka's new prime minister is vowing that his bankrupt country will slash its budget to bare-bones. he is pledging support for food and fuel including from other creditors such as china and japan. >> i understand. i can feel the anger. some of them are missing one meal. a lot of people in the middle class feel that they have been pulled down. so i can understand. we have to get out of this rut. vonnie: 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. item vonnie quinn. this is bloomberg. shery: next, we will discuss rising food protectionism, as governments work to keep

supplies. plus, a call from pepper international to purchase wheat and corn etfs in the short-term. ceo carol pepper joins us ahead. this is bloomberg. ♪ lila: before i was diagnosed, there was nothing really to worry about. and then when i was diagnosed, there was just such a big weight put on my shoulders. every night i felt like maybe i won't wake up tomorrow.

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that's huge. damon: our giving to st. jude is right up there with our mortgage. that's the priority that we put on giving to st. jude. speaker: please call or go online right now. become a partner in hope today.

. > we are going to have more conflict. inflation causes a domestic political conflict. so it will be a big issue in the 2022 elections and the 2024 elections. that's just how the machine works. haidi: ray dalio there speaking to the world economic forum in davos. he says defense, turk and cybersecurity will be a huge play going forward and we will continue to see leadership in these growing sectors. that bring in our next guest, carol pepper, ceo of international. what do you like in this space? errol: we should be looking at unfortunately, wheat and corn etfs. i highly suggest that you buy those in a few months more than bitcoin. unfortunately, the blockades of the ukrainian ocean spaces and waterways are going to cause food security problems and political unrest all throughout the emerging markets. so in the short-term, for the

next year at least well this war grinds on, definitely having some agricultural exposure to wheat and corn etfs will be a wise move if you would like a short-term play in your portfolio that should earn a good amount of money. haidi: he also said to lean into the broader fear around tech with the hope that there might be a fed pause. does that make sense? emma: i manage for money for family offices with over $100 million and we try to make long-term strategic beds. you want a location to tech. this is the time to get in if you had been holding back. because when market is in a fierce cycle, technology tends to go down. if you want to up your tech exposure, now is the time to do it when the prices are much lower. so this is a good time. and there may be surprise of the

upside. if inflation gets tame over the summer, they may not continue raising rates and that could cause tag to start to pop up. shery: what happens if you have inflation and slowing growth, this chart on the bloomberg is shncer about stagflation playing out in the new york fed's latest survey. manufacturing activity and excitedly contracting. how do you position in this environment? emma: i don't think that's be the likely case. we are seeing the cooling of the housing market, for example. if prices get too high, consumers are backing off. so the stagflation is any have high inflation and no growth. i don't think that'll happen anymore. i think we will be in the situation where inflation will start to go down probably by the end of the year, and i really believe we will avoid inflation.

much of this, however out of our control. a lot of it depends on what happens with the work and whether or not the zero covid policies continue in china, which is snarling the global supply chain. shery: we continue to hear concerns about not only the fed tightening but also quantitative tightening in the background, unwinding the $8.5 trillion bond market as well. is that something that concerns you? carol: sure. i think there will be a slowdown. it is concerning, but it has to happen. the markets are still very strong. corporate balance sheets are still flush with cash. 3% to 5% interest rates for large companies is not a big problem. it will be more effect on the consumer side in terms of the housing markets. but for corporations, quite frankly, it's not that big an amount of money when you look at how much they have on their

balance sheets of cash. so i am concerned, but i think we will get through this because companies are fundamentally strong. a lot of them built up a lot of cash during the two-your lockdown period. haidi: pepper international founder and ceo, carol pepper. great to have you with us. let's look at how asian markets are shaping up. will we buy into the idea of a fed pause or will we look like the bank of korea, looking to hike as well. take a look at sydney futures. we are seeing an upside that is unchanged going into the start of that cash session. the aussie dollar sitting under 71 u.s. cents. we are seeing a bit of recovery. watching further gains in nikki reed dollar after the second 50-basis point rate hike from the rbnz. this is bloomberg. ♪

shery: the guggenheim partners chief investment officer says he expects bitcoin to fall back to $8,000. in 2020 he had previously said he thought cryptocurrencies should be worth as much as $400,000. he spoke to bloomberg's tom keene and lisa abramowicz from the world economic forum in davos about his outlook. >> i was an early believer in crypto. i remember looking into bitcoin first when it was $100. i did a presentation that the nantucket project in crypto, you know, how to deal with it and how to invest in it. and i thought this is a viable investment vehicle. but one of my big concerns is that no one has cracked the paradigm in crypto. when i say they cracked the

paradigm, it is used as a currency, right? as you know, the definition of a currency is a medium of exchange, it's a store of value. >> not the last 90 days. >> not at. we have learned that stablecoin, the whole bit, everything is suspect. >> you are a great guy. i want you to explain the divide between the guy from the bank of international settlements, on their study of bitcoin, and the entire scarcity, the derived scarcity of it, with the community of bitcoin that just seems miles apart, and they will not read the researcher. >> right. look, because bitcoin and any cryptocurrency at this point has not really established itself as a credible institutional investment, it has really become

the market of a bunch of yahoos and backwaters. i know i will be plastered on twitter now for what i have just said. [laughter] >> his cell phone just melted down. [laughter] >> but when you consider we have 19,000 digital currencies or cryptos as we call them today, most of them are junk. >> do you have any crypto asset investments? >> we had bitcoin. we bought it at around $20,000, we sold it at $40,000. i thought we were going to correct after we got to 60 k. i thought we would correct to 30 k. we got there. then i began to look and say, why are we stopping here? so, my latest work, which is entirely technical because there is nothing else to look at here, is that we will probably hit $8,000. >> $8,000? >> so you don't have any holdings? >> know, if i were, would be

short. haidi: guggenheim partners chief investment officer scott minerd there. let's get a look at the latest headlines. terra it's shifted to a new version of lunana after the collapse of its token. the founder says there is still doubt -- the coin and reveled in may with the collapse of it underlying stablecoin technology in one of the industry's biggest busts. bank of america has halted trading with one company. the bank made the decision to stop such activity in early 2021. citigroup has also been reported to have suspended equity trading with the company, but continues to trade with it across other financial instruments. next, we speak to the u.n. food and agriculture organization's chief economist as a rising food protectionism threatens to worsen global inflation. this is bloomb this? this is supersonic wifi from xfinity.

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vonnie: you are watching daybreak australia. i am vonnie quinn. china's premier li keqiang says the country is facing economic difficulties much worse than at the start of the pandemic in 2020. his emphasis on growth is seen as an acknowledgment that china could find it tough to meet its target while remaining committed to resident xi's covid zero policy. the ukraine's foreign secretary said peace negotiations with russia are going in his words "nowhere." he compared moscow's offensive in the eastern donbass region to a world war ii battle, saying, quote, "when you are conducting an operation like this, you basically say no to negotiations." the 18-year-old man who opened

fire on a texas school reportedly warned about his plans on social media. the attack killed 19 children and two adults. officials suggest salvador romas posted on facebook his plans to shoot his grandmother and also target the elementary school. facebook's parent meta says the messages were private and only discovered after the attacks. pakistan's arrested premier imran khan has led a convoy to the capital to push for early elections. in response, the government deployed the army. the prime minister's administration is under further pressure, with ongoing i.m.f. talks yet to deliver a deal. that raises the prospect of default for just a second time in pakistan's history. 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 am vonnie quinn. this is bloomberg. shery: right. world food prices eased a little bit in april after reaching an all-time high the previous

month, according to the food and agriculture organization's food price index. but we are now seeing food protectionism on the price, governments -- on the rise. governments trying to protect their food supplies. let's maximo torero cullen, the chief economist of the u.n.'s food and agriculture organization. thank you for joining us. we are seeing more countries having restricted some of their food exports since the war in ukraine began. how will this impact food prices? maximo: what is happening is countries are reacting to the rising food prices. they were the highest in march as the food price index. end -- in april there was a slight reduction. we have around 60 measures. compared to covid-19, we only have about 7% of of the

countries around the world with export restrictions. if we look at the food crisis of 2008, the number went up to 17% of the share of calories exported in the world. then it moved lower after the crisis in 2008. if we look at today with the war in ukraine, we are around 17% to 18% of calories exported being restricted. this means supply is restricted, and this can put pressure on prices. that is what we need to avoid. shery: how do you get out of this? you said that when supplies return to normalized levels, protectionist measures go away. that this time around in 2022 with the war in ukraine ongoing, how do we get out of this? maximo: 2022 is not a major problem right now, despite the war in ukraine. why it is not a problem, because

some countries have reacted by reducing exports more. the gap we have of wheat exports is only 3 million metric tons, because of increased exports by india and by the european union. the gap in mai is az little bit bigger because of increasing exports from argentinae, the united states and others. not all that we export in the year happened after the war. the war restricted the gap of one million metric tons in weight and a similar number in maize. that has been covered partially. we have to work with countries so they avoid doing these restrictions. we have to share the information of availability of stocks and availability of food, and especially we need to avoid this for the next year. the major concern for us is that next year exports.

because if work continues and -- if the war continues and fertilizer export reduction continues, there will be a reduction in the yields of the key exporting countries because of the lack of access to fertilizers that we are facing today. haidi: what about the side of things where individual countries are trying to ensure their food security. what is the role of china? we have seen beijing starting to purchase stock of corn from , every move. it is this going to exacerbate the problems? maximo: china is a big importer from around the world. basically they consume all of what they produce. they import a substantial amount of cereal. but the stocks in china are decentralized. i don't see much of a problem in

china and in other countries. . what is important in difference to 2007 and 2008 is that in 2022, we have enough food. our major challenge is food access, because prices are too high. but in 2023, we could face a problem of food availability and food access, and what we need to do to resolve that is make fertilizers to flow into the markets, and that means the war needs to stop and russia needs to unload exports of fertilizer to the world. but if that doesn't happen, we need to find a way of increasing efficiency. one way is to reduce waste in fertilizer usage. and also to find ways to delay the process of application of fertilizers until this problem is resolved, meaning reducing it for two or three months until we can resolve the war in ukraine. haidi: we are also seeing at the same time -- it is known as the

breadbasket of europe, but also the breadbasket in the u.s., the crop-planting states are behind due to weather problems. in some states they have planted only 10%, when they would be usually fully planted by this time. if you look at geopolitics in the short or medium term, how do you deal with the challenge of climate change going forward, climate-related issues? maximo: that is an extremely important question. if there is any claimant shark in the key exporting countries like brazil, the u.s., argentina or paraguay, we would face a substantial problem in 2023 -- if there is any claimant shock. the medium-term problem right now is, the wheat exporting countries are trying to procure fertilizer. the u.s. is making a significant effort in trying to find solutions as well as other countries and that is where we need to find solutions.

for example, mexico, which was a net importer of fertilizers, is now using their capacity because they are an exporting country and they are using their nitrogen to produce fertilizer. the russia confederation was the first exporter in the world. so we are extremely vulnerable. right now we are not enough food crisis because we have availability and food axis, but clearly, we are running a significant risk in 2023 of having a food crisis if the problem is not resolved of fertilizer flow. shery: this is so interesting. we were thinking about the supply of grains because of ukraine and because of extreme weather. but you keep pointing to the fact that fertilizers are an issue right now. why did we get to this point? and what is next in terms of getting these supplies if we can't get it from russia, and these are the same main markets that we could procure these

fertilizers? what can we do until we get to 2023? maximo: how did we get to this point? that is the question. the problem is the fertilizer industry is very concentrated. few countries are key players, and russia is one of those. the first exporter in the world of nitrogen, the second in force first and others. what is happening right now and they don't export, that affects availability of fertilizers in the world. really have to try to find ways in which we can diversify access of fertilizers. nigeria can produce fertilizers. mexico can produce fertilizers. . high exporters of petroleum have the capacity. that is a call for action to try to avoid this problem in the future. how do we resolve the problem now? let's assume russia does not allow fertilizers to move out. the only way out is for some countries to immediately find ways to resorb -- to

resolve this, like mexico, or try to find ways in which you can pull out the fertilizer from the russian federation. luckily, brazil was able to extract some fertilizers out, but other countries are in important need for fertilizers. the second option is to increase efficiency, basically using proper soil methods, trying to reduce how you use fertilizer so that you save it and it is more efficient. ethiopia has been a great example in this. the third way for us is to find solutions by geographical location on how we can delay as much as possible the highest application of chemical fertilizer by combining it with manure, with organic fertilizers so we can leave a bigger window until we can resolve the conflict. today the world has food. we have about nancy in a grain, came fertilizers in the russian federation, but we can't move

them out. so we need to solve this problem and if not, we need to find alternatives in efficiency. haidi: always great to have you with us, we appreciate your time. maximo torero, chief economist of the food and agriculture organization of the united nations. the new australian prime minister will go to fiji on thursday, just as china prime minister embarks on his tour of his pacific -- tour of the pacific. paul allen joins us with more. what do we make of it? certainly a busy start to the job. paul: she was just sworn in on monday, on tuesday she was in tokyo for the quad, and today she is off to fiji. the first of a dozen visit to pacific island nations before the meeting in july. this is in the backdrop of a

report by reuters saying that china is seeking deals with pacific island nations. huge expansion of a similar deal that china signed with the solomon islands in march. we still don't have the text of their agreement. we know it allows the solomon islands to request security assistance. could it allows safe harbor of chinese warships so close to australia's coast? we just don't know. shery: we saw the draft from china for more security agreements. what has the reaction being in pacific nations? paul: at the moment really only one country is publicly expressing concern, the federated states of micronesia. the president there is saying that the plan from china should be rejected, concerned about the risk of a new cold war in the pacific, his words. the federated states of micronesia does have a defense agreement with the united states, and an economic agreement with china. the president saying that this would bring the pacific

allegations very close into beijing's orbit, tying the whole of our economies and societies to them. china's foreign ministry rejects this idea of a new cold war. the solomon islands also has been very unhappy with the criticism of its deal with china. east timor another country in the indo-pacific, saying it would be a mistake not to have relations with china. all of this complicated arrangement underscores the challenge ahead for australia's new foreign minister, penny wong. shery: paul allen there with the latest on australia and china. next, musk has revised his efforts to purchase twitter, as the former twitter ceo formally leaves the company. we will have the latest. this is bloomberg. ♪

shery: type now for the morning because i had of the asia trading day. u.s. mutual funds are. into growth cyclical stocks. goldman sachs strategists say the funds are overweight growth versus value for the first time since 2019. investors are also more overweight cyclical sectors than at any time since 202012. targets include industrials,

financials, materials, and energy. one fund that has felt the pressure has been kathy woods flagship etf -- cathie wood's flagship etf. you can see the latest data showing that bets against the fund are down quite a bit from capo highs. it is likely some shorts have been spooked by the etf being able to draw more cash even as it has slumped almost 30% over the past month. haidi: meantime, elon musk has revised his offer to purchase twitter, boosting the equity component of his bid. bloomberg's ed ludlow has the latest. how does this shape the overall takeover bid question mark ed: the margin loan has been wiped out. remember in the original structure of the deal we had 12.5 billion dollars of margin loans. the loan-to-value ratio of 20% meant elon musk had to secure the loan with a big chunk of

tesla stock. it was cut down to 6.2 5 billion and in the latest filing it has gone down turn zero with the equity portion increasing dramatically. that is de-risking the whole thing for everyone. remember the other thing that happened since the whole saga started is tesla stock dropped 40%, which meant musk who was collateral rising that stock for that margin loan component was making people nervous about how it was structured. the other big part is he is talking to investors, to get more people on board. shery: and twitter also had its shareholder meeting. you have been outside company headquarters all day. did this deal come up in the meeting? ed: indirectly. it was not on the agenda per se, at one shareholder had an interesting resolution, arjuna capital, who basically said the board has to have someone with a high level of expertise in human

or civil rights. their proposal was not voted in, but during the course of the presentation, the capital company sent if twitter had a better track record of human and civil rights, they wouldn't have these problems around freedom of expression and moderation of content. we wouldn't be in the situation where the world's richest man is trying to take the company private. they concluded their remarks by saying that minting the world's latest media billionaire is not the right answer. so it was not discussed directly, but shareholders are expressing concerns during proceedings. shery: bloomberg west coast reporter, ed ludlow there with the latest on twitter. another company we are following right now0 chinese e-commerce giant alibaba is expected to post its second quarter of single-digit revenue growth. we continue to see regulatory pressure not to mention covid lockdown's continuing to apply pressure on the company.

let's bring in over chief north asia correspondent stephen engle in hong kong. alibaba's results give us a snapshot of consumer demand in china, right? what is the consensus view right now? stephen: absolutely, this is a proxy for the chinese economy, which has become more consumer-driven, as well as the regulatory overhang, we know that alibaba is the poster child for the regulatory pressure on tech, because of the investigation against the company. and boy, its stock price has been absolutely hammered. tencent reported last week that we were expecting 4% revenue growth, an historic low -- it came in at 0.1% revenue growth. alibaba is not likely to fa re much better. the consensus estimate for revenue growth is in the mid single digits, about 7.1% overall. core commerce, the bread-and-butter of this company, likely to be under 5%

revenue growth. this is likely in the fourth fiscal quarter, a $200 billion revenue company. 167 billion yuan would be from the core commerce. and as you just said, what has been hammered through april? of course, it was the lockdowns in shanghai, and restrictions in other places like beijing that absolutely hammered retail sales. retail sales in april fell 11% year-over-year. that is going to be reflected in these numbers. so what will we be looking for from the results? well, historic lows in revenue growth. what we will really be looking for is the projections for fiscal 2023 revenue, if they will be ratcheted lower. that regulatory overhang is still there, despite officials talking up the sector. haidi: and also talking up these

platform companies more broadly, signaling that may be regulatory pressures might be on the way out. but the market has not really subscribed to that. stephen: no, not a lot. even tencent last week said it would take a long time to roll these out. tencent shares are down 10% since its report last week. no tailwinds for tencent despite all these officials and ministries talking up the platform economy and how they are a big engine of growth. there had just been too much regulatory pressure and not in that specifics on what kind of measures the government will rollout to prop these companies up. one thing that truist analysts say, a lack of visibility on the details, timing and potential success of the government measures, make it hard to focus alibaba's growth. essentially, the continued challenging environment in all

segments. but look at the analyst recommendations, these stocks, i am talking alibaba and tencent, are treating like utilities. alley oop!: forward pe is below 12 -- alibaba's forward pe is below 12. but investors seem bullish on the 12-month outlook. 39 buys on the adrs. 2 holds. the stock is trading below pe. haidi: plenty more to come here on." -- on daybreak. this is bloomberg. ♪

shery: a quick check of the latest business flash headlines. msn shareholders have ejected solutions seeking more disclosure over the company's treatment of workers. -- amazon shareholders. the company has been been under intense pressure from unions and employees for proposals over improving working conditions. shareholders voted to approve executive pay packages. ceo mark zuckerberg says meta would lose a significant amount of money in the neck five years as it invests the metaverse.

at a shareholders meeting, he said the project will eventually make money from it creator economy, with businesses selling virtual goods and businesses. haidi: let's get a look at how bond markets are trading. we saw the move after the rbnz 50 basis point hike. the consecutive one after the previous meeting in the first time to have done that back to back since the start of the ocr back in 1989. key reebonz are settling. the australian 10-year yield falling in-basis point in the overnight session. we are watching whether we will see the continued rally when it comes to the aussie. over the next hour, we will get more on the rbnz and new zealand's economy. our interview with the rbnz governor, adrian orr. this is bloomberg. ♪