♪ haidi: a very good morning. i am haidi in sydney, we are counting down to asia's nature market opens. annabelle: i am annabelle from hong kong. shery: i am shery and in new york. welcome to daybreak asia. our top stories this hour, set to end the week on a high note after equity stop at two day slump in new york. alleviating conflation --

inflation concerns. opec will open oil taps in the coming months as a gesture of reconciliation to the u.s.. president biden reportedly wanted them to sell. the president is set to give a national address on gun control as congress works on bipartisan legislation we will start you off with inflation numbers out of south korea. we are getting the latest gear on your numbers, growth of 5.4% in may, this would be the fastest acceleration or inflation in south korea since 2008 and also this would be the first times that it surpasses the 5% level in 17 years. when it comes to month on month numbers, there is upside growth of 0.7%. take away food prices, floor consumer prices rising 4.1% year on year, really a much faster acceleration and what was expected at 3.7%. of course, we have already heard from finance minister saying cpi

inflation is likely to remain in the 5% level for some time. and yes those year on your numbers came in at 5.4% in may, fastest pace since august of 2008. this will put a lot of pressure on what the bank of korea does next. annabelle: yes, certainly be interesting to see how the yuan reacts to that as you get the opening of markets of the top of the next hour. inflation is never far from the top of investors minds and concerns that the fed could hike into a recession. how that is playing out ahead of the open in asia this friday, we're seeing treasury bond futures looking mostly flat right now. meanwhile, japan pointing to a weaker start. the aussie markets could open 100% to the upside, reversing losses and more that we saw in the previous session. currency is a big focus today as we are continuing to see the bloomberg dollar index decline and that is helping to strengthen the aussie dollar as we see commodity prices rise.

we're looking at the aussie and cross in particular. that is typical for ranks appetite. -- risk appetite. as we see treasury yields rise, yen weakness and investors moving away from haven assets. haidi: it looks like risk ongoing into jobs day as well, take a look at u.s. futures at the moment. we are seeing a bit of a robust picture there, just about 2/10 of 1% higher really across the board. we did say across u.s. stocks, that to date losing streak. a shop that a sharp rally, interesting in some of the french parts of the rally. even the ark innovation fund seeing parts of that recovery rally play out as well. take a look at crude as well, watching oil prices, we will continue to monitor the dynamic for this price. oil extending a fixed weekly advance as concerns over the tightening market really kind of alleviate at least for now with that modest pledge from opec.

shery: of course a focus on every remark from fed officials, shining a spotlight even broader on the u.s. jobs report due out just hours from now. our global economics and policy header kathleen hays is here with the latest. and what message is vice chair trying to send? kathleen: we want to listen extra closely. just nominated or confirmed in that job last week, the point that the sheet is making, we are watching inflation. we are not watching our forecast of inflation, we are watching what it actually does. this idea that it would be a september pause, well, probably not. let's listen to what she said earlier in an interview on cnbc, after she endorsed the idea very clearly of that this basis point rate hikes and continuing sticking to the course when it comes to bringing inflation down. >> right now it is hard to see the case or a pause. we still got a lot of work to do to get inflation down to our 2% target.

kathleen: cleveland fed bank president speaking later in the day, amplified remarks that brainard had made in her remarks about the two sides of the coin. inflation starts to slow down or inflation that does not and keeps moving higher and what it means for policy. here is what she said. >> if by september, the september fomc meeting, the monthly meetings on an asian provide compelling evidence, then inflation is moving down, and the pace of rate increases could slow but if inflation has failed to moderate, faster rate increases could be necessary. kathleen: raphael bostic, president of the atlanta fed said a few weeks ago that the fed could pause in september if inflation is starting to come down. he expects it to get to over 6% on the key measure back down to 4% by the end of the year, but if it does not get there, he says the fed will have to keep raising rates.

haidi: what about the jobs report? what signals are we looking for or is the fed looking or from that? kathleen: what we are expecting a thick the fed is expected the same thing, is that you are going to see a bit of cooling off, but that is like saying my teakettle is pointing over and now it is just kind of bubbling nicely. it is still expected to be a report that shows even if there is some steam lost in the labor market, it is still strong enough or fed not to worry about it. they are supposed to have 320,000 that we do down from the previous month of or hundred 25,000. it would be the first time that they have been below 400,000 in over a year and 400,003 had 25 are considered healthy jobs gains. unemployment expected to hold at 3.6%, that is still the lowest rate since 1969. this is still a very tight labor market. average learnings -- earnings if you talk about wages, 5.2%

year-over-year, that would be down in a half -- down a bit from five and have percent in april, but healthy numbers. another thing to consider here is what is going to be hard for the fed economists to figure out is how much of this slowdown is because of the great resignation, because there are workers who are not ready to go back to work or are looking for different jobs. i think it is hard to separate what may be a decrease in demand , meaning companies need less workers versus they just cannot find the workers they need or people cannot find the job they want. shery: kathleen hays, always good to get your perspective. global economics and policy editor of course with the tightness in the labor market, but at the same time we continue to hear about these fears about recession, given with the federal reserve is doing, today we heard from coleman president john waldron, warning of tougher times ahead. jamie dimon was saying given the elevated risks of a global recession, our next guest recommends defensive fx trades.

let's bring in zach, cohead of goldman sachs strategy. great to have you back. let's talk a little bit about what defensive fx means because i was thinking about this a couple of years ago, i would go to the japanese yen, u.s. dollar, but given how they have been trading, i don't know what to say. what are you recommending? zach: yeah well, we really think that japanese yen is the safest currency to be in in this highly uncertain, volatile both macro environment. it is a safe haven in a particular way, it works as a safe haven when u.s. demand is slowing down. the u.s. economy is going into a recession or growth is coming down, what is -- that is what the fed is trying to achieve. that is what we're trying to see in the data and tomorrow, the report will tell us whether we are seeing that in the labor market with employment. i think we will see substantial signs of slowing, and that makes yen our top pick at the moment. shery: where the dollar goes

also very much because of where the euro is at right now, what are you expecting on that front? zach: both the fed and ecb are hiking rates, inflation is too high in both economies, so the question is, you know, beyond that, or there things that could drive the euro up or down? i think really there are tail risks in both directions for the euro. on one hand, exiting negative rates after eight years could be quite a big deal for fixing income capital flows back now that your cash deposit of yield. at the same time, we have a geopolitical conflict in eastern europe that introduces tailwind to the growth element, so it is a tough spot. our best guess is that the medium-term outlook is still higher. medium-term appreciation, a lot of risks in the current environment we do not have an active long short regulation in europe right now. haidi: the direction of these dollar pears depends on where we go with treasury yields and

where we go with further gains in oil. do you have assumptions on those factors? zach: of course it is a highly uncertain environment and tomorrow morning, a report is going to have a lot to say on where rates are going in particular. the fed, as you've heard in recent commentary, is debating whether to keep hiking at 850 basis points click beyond the next two meetings or whether they need to slow down. there is a debate playing out in public. were going to give the key input in that decision tomorrow morning. we are below consensus, 100 thousand below consensus for payrolls tomorrow. if we get that sort of thing, i think treasury yields will pull back over the near term and the yen would probably outperform within g10 fx. haidi: of course we have the balance sheet right off again this week. it's an mastiff whichever way you look at it. can i ask you a question. what do you think are the biggest pain points for markets coming out of quantitative tightening, given that we know at least some of it must be

priced in by now? zach: i think the market that faces the most medium-term challenges from the process of tightening monetary policy is just the bond market. we probably are moving into an environment where inflation is harder to bring down than where it was over the last 20 years. in that type of environment, the general level of interest rates is going to be higher, bond returns are going to have a hard time from raising rates to bond tightening. i think you are still supposed to say the bond market overt say the next one or two years. we will face the biggest headwinds from the fed's persistent shrinking of its balance sheet. haidi: do stay with us. we will get your views on emerging markets and the u.n. in just a moment. sac from goldman sachs is still with us, but let's get you to su keenan with the first word headlines. su: we start with opec-plus which will open up its oil faster in the coming months and a sign of promising u.s. relations, the white house welcome to the deal after months

of diplomatic pressure on saudi arabia to raise output. immodest boost works out to less than half a percent of global demand, over july and august. west texas intermediate futures rose above $116 a barrel on a sign of skepticism over the hike. meanwhile the european union has approved a sixth package of sanctions, including a partial ban on russian oil. this after hungary dropped its objections. the eu's toughest measures will ban the purchase of russian crude in six months and refined petroleum products in eight months. pipeline crude will be spared for now as a concession to hungry and other landlocked countries. the u.s. has condemned china's policies toward religious minorities, particularly in hong kong. in an annual report, the state department again kim used -- accused china of genocide against muslims. it also highlighted a crackdown on churches in hong kong associated with that 2019

pro-democracy protests, citing the arrest of cardinal joseph. president biden is set to urge congress to pass gun-control legislation in a primetime address from the white house. the president's address will come a day after a gunman killed four people in oklahoma and just over a week after a teenager killed 19 children and two teachers at a school in texas. at the same time on capitol hill, a bipartisan group of lawmakers is negotiating a possible agreement on gun control. global news, 24 hours a day. on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm su keenan. this is bloomberg. shery: we will bring you those remarks by president biden live in about 20 minutes here on bloomberg tv. do stay with us. this is bloomberg.

♪ >> now greater recognition that inflation is not transitory is probably with us for a number of years and it is the type of inflation that i do not believe the federal reserve has the policy or the tools to do much with it right now. and i am personally not blaming the federal reserve for where we are right now, but i believe most of the problems we are living with today are more

policy generated and supply generated. >> this is among is among if not the most complex dynamic environment i have ever seen in my career, we have obviously been through lots of cycles, but the confluence of the number of shocks to the system to me is unprecedented. haidi: big names there on the current economic environment risks. take a look at this, goldman sachs saying emerging market stocks, bonds and currencies are set to reap the rewards of a peak in the u.s. dollar. strategists are pointing to china and southeast asia as attractive targets. still with us is zach, cohead of global access -- global fx. sac, it is not the assumption of a peak in the dollar but also the assumption for a peaking u.s. inflation as well. in lot of the data versus the forecast though have been quite jarring and unusual. what is your take away in terms of good opportunities here? zach: but he assumption that we

are making and a lot of forecasters are making is that the chinese economy will recover in the third quarter of this year. from a macro standpoint, there are lots of things going on, but in terms of world gdp growth, the weakness of the economy in china has been the key factor holding back growth. we think that will be rebounding over the course of the next few months. if that proves the case, if the fed is only moving up at 50 basis points per year, i think emerging-market currencies could stand to benefit. in particular, currencies in latin america, the undervalued, high kerry commodity exporting crises, that is where we would see capital go if the chinese economy does over the next few months. haidi: does the rebound in the economy fueled by significant demand and infrastructure investment and economic easing necessarily drive strength in the yuan though and to that

extent, do we see it as being a major anchor for the rest of the world? zach: not necessarily. it may not drive you want appreciation. china has a different set of policy tools than the united states, so we do not tend to see policy easing show up in the exchange rate quite to the same extent. that being said, i do not think that chinese authorities want to see a very strong exchange rate and the primary goal is to help the economy grow, exchange rate appreciation could hold that back on the margin. very focused on other tools, things like infrastructure investment. this should help domestic markets. the currency probably range pound in the context of a firm dollar and if we do see the dollar turn lower we would want to concentrate on that on things like latin american currencies rather than the yuan itself. shery: we have seen equity performance buried from what

we've seen from the past, whether it is growth versus value, this concentration on tech. does that have applications for fx, especially when we are looking at say equities centric northeast asian currencies or tech centric markets? zach: absolutely, i think that the tech centric rally in markets and equity markets over the last decade has been quite helpful for the dollar in particular, meaning some of these other tech centric markets agree. korea or israel for example have benefited from a tech lead equity market but those things are changing. a more value-oriented market where financials, commodities, materials are outperforming. currency allocations because those sector competitions differ across countries. countries like canada or australia or the u.k. benefit in more value lead equity environments. so in a market where recession

risks, down, i do think markets like canada would look attractive again. shery: always good catching up with you, thank you, zach, cohead of goldman sachs strategies. and you can get a roundup of all of the stories that you need to know to get your day going in today's edition of daybreak. terminal subscribers go to dayb . this is bloomberg. ♪

>> we in the administration leaned into the port situation. we have seen improvement there with declining congestion. but you know, this is an unfortunately slow and steady effort and we are going industry by industry, figuring out where the government can play a role to unclog and unstick the supply chain. >> tons of wheat in ukraine,

stuck in silos and unable to be moved. there are discussions and coordination trying to happen to send it by land, but it will be a difficult i believe it can be at the volumes that are needed. haidi: u.s. commerce secretary there and the world bank managing director of development. we are tracking the fallout of the global supply chain crunch. these are today's top stories. we are watching prices of soybeans that are crushed to make oil rising after the u.s. announced a sale to pakistan one day after china booked a purchase. the squeeze hits just as shanghai lifts covid lockdown restrictions and raises the likelihood of increased demand for edible oils by chinese restaurants. the baby formula shortage in the uss has continued to worsen. out of stock rates climbed to

74% for the week ending may 28 according to data on 130,000 stores, followed by data assembly. opec-plus has agreed to open its oil taps wider in a gesture of reconciliation to the u.s.. the group has approved oil production of the 648,000 barrels a day to meet july and august. that is a 50% increase. shery: haidi, those increases seen as modest compared to what is really needed when it comes to global demand. they are about 0.4% of global in july and august, so you can see the price action right there pointing higher supplies, u.s. inventories dropped. terminal users can read more about that in supply lines on and i trade nl. here is a quick check of the biggest -- latest business flash headlines. apple is said to make work

schedules more flexible at retail scores -- stores. the company has informed staff that scheduling changes will take effect in the coming months. we are told it is part of a push to appease employees in the face of unionization efforts, after some retail corporation workers faced concerns about their schedules. global management is cutting management fees after losses reach 52%. it will create separate accounts for liquid venture capital bests of customers who want to redeem. the hedge fund set to have sink around 40% last month, hit by losses in several stocks and huge markdowns in his private assets. bloomberg has learned citigroup may pose losses of at least $50 million after trade in may triggered a crash in european stocks. sources say the lender is adding up its losses and the number could be even higher. we're told the london trader was working from home and added an

extra zero to an early trade. let's take a look at u.s. futures after we saw the closing near the session high, gifting a tailwind for friday. futures firm, a quarter of 1% higher. on pace after snapping a two-day slide. we saw a pretty rounded sectoral rally to be honest. energy was the laggard. we saw gains across some of the riskiest parts of the markets, the likes of tesla, big tech like microsoft, as well as arc innovations etf all seeing gains. site broad gain of 1.8% in the biggest gain was across consumer discretionary, along with tech. really, we see this ricocheting between sentiment driven by the possibility of recession. of course we heard from the likes of dame -- jamie dimon and others hoping for a fed pause. coming up next, president biden is said to address the nation on gun violence. that is happening in just a few

mome

♪ >> we are not an island. 85% of the crime guns in new jersey are from out-of-state. we need congress to act. shery: new jersey governor phil murphy speaking exclusively to bloomberg, this of course is we are waiting now. president biden expected to speak at any moment on urging congress to pass gun control legislation. the white house says the remarks will be on the recent tragic mass shootings and the need for congress to act when it comes to

commonsense laws to combat the academic of gun violence. -- the epidemic of gun violence. this after a gunman killed four people in oklahoma and last week the tragic shooting of 19 children and two teachers at an elementary school in texas. haidi: it really has been the seismic event that i think a lot of proponents of greater gun-control measures are hoping will make a difference. we are seeing president biden come out now, let's listen in. president biden: memorial day this past monday, jill and i visited arlington national cemetery. as we entered those hallowed grounds, we saw rows and rows of crosses. among the rows of headstones and

other emblems of belief honoring those that paid the ultimate price on battlefields around the world. the day before, we visited uvalde texas in front of robb elementary school, we stood before 21 crosses for 19 third and fourth graders and two teachers. on each cross, a name. and nearby, a photo of each victim that jill and i reached out to touch. innocent victims, murdered in a classroom that have been turned into a killing field. standing there in that small town, like so many other communities across america, i could not help but think there are too many other schools, too many other everyday places that have become killing fields, battlefields, here in america. we stood at such a place 12 days before, crossing a grocery store

in buffalo new york, memorializing 10 fellow americans, a spouse, a parent, grandparent, a sibling, gone forever both places we spent hours with hundreds of family members who were broken, whose lives will never be the same. they had one message for all of us, do something. just do something. for god's sake, do something. after columbine, after sandy hook, after charleston, after orlando, after las vegas, after parkland, nothing has been done. this time, that cannot be true. this time, we must actually do something. the issue we face is one of conscience and common sense. source of -- for so many at home, i want to be very clear, this is not about taking away anyone's guns.

it is not about vilifying gun owners. in fact, we believe we should be treating responsible gun owners as an example of how every gun owner should behave. i respect the culture and tradition, the concerns of lawful gun owners. at the same time, the second amendment, like all other rights, is not absolute. it was justice scalia who wrote and i quote like most rights, the right granted by the second amendment are not unlimited. not unlimited. it never has been. there have always been limitations on what weapons you could own in america. for example, machine guns have been federally regulated for nearly 90 years and this is still a free country. this is not about taking away anyone's rights, it is about protecting children. it is about protecting families.

it is about protecting whole communities. it is about protecting our freedoms to go to school, to a grocery store, to a church without being shot and killed. according to new data just released by the center for disease control and prevention, guns are the number one killer of children in the united states of america. the number one killer. more than car accidents, more than cancer. over the last two decades, more school age children have died from guns then on-duty police officers and active duty military combined. think about that. more kids than on-duty cops killed by guns. more kids than soldiers killed by guns. for god sake, how much more carnage are we willing to accept >> how many more innocent american lives must be taken before we say enough, enough.

i know that we cannot prevent every tragedy, but here is what i believe we have to do. here is what the overwhelming majority of the american people believe we must do. here is what the families in buffalo and uvalde in texas told us we must do. we need to ban assault weapons and high-capacity magazines. if we cannot ban assault weapons, then we should raise the age to purchase them from 18 to 21. strengthen background checks and enact safe storage laws and red flag laws, repeal the immunity that protects gun manufacturers from liability. address the mental health crisis that leads to gun violence and as a consequence of that violence. these are rational, commonsense measures. here is what it all means. it all means this, we should reinstate the assault weapons

ban on high-capacity magazines that we passed in 1994 with bipartisan support in congress. and the sport of law enforcement. nine categories of semi automatic weapons were included in that band, like ak-47s and ar-15's. and in the 10 years it was law, mass shootings went down but after republicans let the law expire in 2004, those weapons were allowed to be sold again, mass shootings tripled. those are the facts. a few years ago, a family of the inventor of the ar-15 said he would have been horrified to know that his design was being used to slaughter children and other innocent lives instead of being used as a military weapon on the battlefield. as it was designed. that is what it was designed for. enough. enough. we should limit how many rounds a weapon can hold.

why in god's name should in ordinary citizen be able to purchase an assault weapon that holds 30 round magazines that let mass shooters higher -- fire hundred's of bullets in a matter of minutes? the damage was so devastating in uvalde, parents had to do dna swabs to identify the remains of their children. nine and 10-year-old children. enough. we should expand background checks to keep guns out of the hands of felons, fugitives and those under restraining orders. stronger background checks is something that the vast majority of americans, including the majority of gun owners, agree on. i also believe we should have staved -- safe storage laws. personal liability for not locking up your gun. the shooter at sandy hook came from home full of guns. they were too easy to access,

that is how he got the weapons. the weapon he used to kill his mother and then murder 26 people, including 20 first graders. if you own a weapon you have a responsibility to secure it. every responsible gun owner agrees. to make sure no one else can have access to it. to lock it up. to have trigger locks. and if you do not, and something bad happens, you should be held responsible. we should also have national red flag laws, so that a parent, a teacher, a counselor can flag for court that a child, student, patient is exhibiting violent tendencies, threatening classmates. or experiencing suicidal thoughts that make them a danger to themselves or others. 19 states and the district of columbia have red flag laws. the delaware law is named after my son, attorney general beau biden. fort hood texas 2009, 13 dead

and more than 30 injured. marjory stoneman douglas high school in parkland, florida, 2018, 17 dead, 17 injured. in both places, countless others suffering within visible wounds, red flags laws could have stopped both of these shooters. in uvalde, the shooter was 17 when he asked his sister to buy an assault weapon, knowing he would be denied because he was too young to purchase one himself. she refused, but as soon as he turned 18, he purchased two assault weapons for himself. because in texas, you can be 18 years old and by an assault weapon, even though you cannot buy a pistol in texas until you are 21. you cannot ban assault weapons as we should, we must at least raise the age to be able to purchase one to 21. look, i know for some folks,

though say 18-year-olds can serve in the military. and fire those weapons. but that is with training and supervision. the best trained experts in the world. do not tell me raising the age will not make a difference. enough. we should repeal the liability shield that often protects gun manufacturers from being shoot for the death and destruction caused by their weapons. they are the only industry in this country that has that kind of immunity. imagine if the tobacco industry had been a man from being sued, where we would be today. the gun industry's protections are outrageous. it must and. and let there be no mistake about the psychological trauma that gun violence leaves behind. imagine being that little girl, that brave little girl in uvalde who smeared blood off her murdered friends body onto her own face to lie still among the

corpses in her classroom and pretend she was dead in order to stay alive. imagine, imagine what it would be like for her to walk down the hallway of any school again. imagine what it is like for children who experience this kind of trauma every day in school, in the streets, in communities across america. imagine what it is like for sony parents to hug their children goodbye in the morning, not sure whether they will come back home. unfortunately, too many people do not have to imagine that at all. even before the pandemic, young people were already hurting. there was a serious youth mental health crisis in this country. we have to do something about it. that is why mental health is the heart of my unity agenda that i laid out in the state of the union address this year. it must provide more school counselors, more school nurses, more mental health services for students and teachers.

more people volunteering as mentors to help young people succeed. more privacy protection and resources to keep kids safe from the harms of social media. this unity agenda will not fully heal the wounded souls, but it will help. it matters. i just told you what i would do. the question now is what will the congress do? the house of representatives passed key measures we need, expanding background checks to cover nearly all gun sales, including at gun shows and online sales. getting rid of the loophole allows a gun sale to go through after three business days, even if the background check has not been completed. and the houses planning more action next week. safe storage requirements. the banning of high-capacity magazines. raising the ages to buy an assault weapon to 21. federal red flag laws. codifying my ban on ghost guns that do not have serial numbers

and cannot be traced. and tougher laws to prevent gun trafficking and purchases. this time, we have to take the time to do something and this time, it is time for the senate to do something. but as we know, in order to get anything done in the senate, we need a minimum of 10 republican senators. i support the bipartisan efforts that include a smoker but democrats and republican senators trying to find a way, but my god, the fact that the majority of the senate republicans do not want any of these proposals, even to be debated or come up for a vote, i find unconscionable. we cannot fail the american people again. since uvalde just over a week ago, there have been 20 other mass shootings america. each with four or more people killed or injured.

including yesterday at a hospital in tulsa, oklahoma. a shooter deliberately targeted a surgeon using an assault weapon he bought just a few hours before his rampage that left the surgeon, another doctor , receptionist, and a patient dead and many more injured. that does not count the carnage we see every single day. it does not make the headlines. i have been in this fight for a long time, i know how hard it is, but i will never give up. and if congress fails, i believe this time, a majority of the american people will not give up either. i believe the majority of you will act to turn your outrage into making this issue central to your vote. enough, enough, enough. over the next 17 days, the families in uvalde will continue burying their dead. it will take that long in part because it is a town where everyone knows everyone and day

by day, they will honor each one they lost. i met with the owner and staff of the funeral home. they are being strong to take care of their own and the people of uvalde mourn as they do over the next 17 days, what will we be doing as a nation? jill and i met with the sister of the teacher who was murdered and the husband died of a heart attack, leaving behind for orphan children, all orphaned. the sister asked us what could she say, what could she tell her nieces and nephews? it is the most heartbreaking moments that i can remember. all i can think to say is i told her to hold them tight, hold them tight. after visiting the school, we attended mass at sacred heart

catholic church with father eddie. in the pews, families and friends held each other. as archbishop gustavo spoke, he asked the children in attendance to come up on the altar and sit with him as he spoke. there was not enough room so a mom and her young son set next to jill and me in the first pew. and as we left the church, a grandmother who had just lost her granddaughter passed me a handwritten letter. it read quote a race the invisible line that is dividing our nation. come up with a solution to fix what is broken and make the changes that are necessary to prevent this from happening again. end of quote. my fellow americans, enough. enough. it is time for each of us to do our part. it is time to act. the children we have lost, the

children we can save, the nation we love, let's hear the call and the cry, let's meet the moment, let us finally do something. god bless the families who are hurting, god bless you all. a him based on the 91st song sung in my church, may he raise you up on eagles wings and bury -- bare you on the breath of don. make you to shine like the sun and hold you in the palm of his hand. that is my prayer for all of you. god bless you. shery: we are listening to president biden address the public on the need to act on gun violence, calling for a strengthening of background checks, red flag laws, banning of assault weapons, not to

mention raising the age for assault weapons, really calling on the senate to do more. let's bring in bloomberg's courtney rosen in washington for her take on what president biden said. president biden even talking about repealing the liability shield for gun manufacturers, but also saying that really it is the senate and congress that needs to act. what is politically feasible at this point? courtney: congress is considering right now two items, one of which the president did not mention. the first item is red flag laws, which the president talked about just now. the idea that people who are a danger to themselves or people around them could be flagged by people in their lives, whether they are teachers or doctors, to not be able to purchase a firearm. that is something that members of congress are debating right now and i would say it is the most optimistic proposal. or the proposal that is most likely to result in a deal. the second item that he did not

reference is the idea or appointing a regulator or top regulator from the federal firearms agency. that agency has not had a confirmed leader since 2015 and president biden appointed -- excuse me, nominated someone several months ago or several weeks ago and that person had a hearing last week. so we are waiting on congress, we do not know if we have support in all the democrats in the senate. that is not clear yet, so that is another tangible item that could actually come over to out of this. haidi: what options remain for president potentially to launch a unilateral -- what are some of the things that he could do while we see these bipartisan talks continuing? it seems like any kind of deal by the senate is going to fall short of some of these very sweeping changes that he wants to push through. courtney: the president has been a proponent since he took office of programs that are violence prevention programs.

these are programs. these are programs that are designed to prevent violence in neighborhoods, where the vast majority of gun violence is happening in the u.s.. we see on tv these mass shootings, the drama, but we are not necessarily at seeing more of the everyday gun violence. so something that the president could do is focus more intently on those proposals, focus on those proposals for community led gun violence prevention. which is something that he has already proposed and has not necessarily completely followed through on yet. haidi: where does support lie in terms of the factor of heading towards midterms as well. this is a policy issue. courtney: the midterms are a few months away now, which is a lifetime away in american politics. so, the question is going to be whether there is going to be enough pressure on senate republicans to act and to pass

some kind of gun reform that the president will sign into law. he talked tonight about just these expensive visions of gun reform and i will remind you we are having a president speak who knows what is like to bury his own child. he saw this expansive vision of gun reform that obviously is something democrats are pushing, but politically, the question is going to be whether republicans are willing to get involved here or whether they are going to listen to constituents that might agree with democrats. we don't know, but the political question is going -- or the politics of this are going to play out in the coming days and especially next week. haidi: bloomberg's courtney there. also hearing from president biden, really begging his fellow lawmakers to do something following mass shootings of course. the shooting at robb elementary was only last wednesday and as the president mentioned, this week, 20 more mass shootings in the u.s. since that time.

you can continue to watch us live and catch up on past interviews in our interactive tv function, tv . you can also just dive into any of the securities or bloomberg functions that we talk about and join in on the conversation as well by sending us instant messages during our shows. let's take a look at the set up when it comes to the start of trading here in asia. this friday's session. we are looking to see the impact of that fiery career inflation number. -- korea inflation number. annabelle: korean markets coming online. cementing the case for the be ok to stick with the program into the third quarter, so we saw the fastest rise in consumer prices in her teen years. that was a rise of 5.4%, versus 4.8% the year prior. food inflation is a major factor playing into that and that is an issue that we are seeing around the world, but today we will get

the latest reading on that when we get the u.n. nation -- united nations food price index. it is up more than 70% in the past two years and this of course here shows where we are seeing agricultural commodities spiking across the board here today. our bloomberg economics team is finding good news in this. they are saying prices are expected to elevate over the was of the year, the bad news though is that there does still appear to be historically high levels. shery: that of course really fueling the concerns of high inflation, also currency weakness are not helping the price pressures, especially with the yen's latest slide. this is market watchers debating whether we will hit the key psychological level of 135 per dollar. for more on what investors are saying, let's bring in our senior fx and rates reporter, ruth carson. ruth, is this all about those rate differentials? ruth: absolutely hitting the nail on the head there. just when markets thought that

the western yen is behind us. it is shortselling and it does come back down to a policy divergence story between the bank of japan and the federal reserve. we are seeing fed officials come out to consistently say u.s. interest rates just need to rise further to tamp down decades hi inflation, but on the other hand boj sticking to monetary policy. with treasury yields rising as well it is turbocharging the yen weakness we are seeing and until the policy divergence narrows, we are likely to see more yen weakness ahead. haidi: senior fx and rates reporter ruth carson there, watching the yen as we get into the start of trading. as we see it is just red hot inflation threats around the region. we have the market open in sydney and tokyo next, we are seeing asian markets looking pretty peppy going into this session.

of course, we had u.s. stocks snapping two days of losses and that is giving the tailwind, despite these concerns of a looming recession and despite the fed vice chairman really pouring cold water on the idea of a fed pause. market opens our next. this is bloomberg. ♪ dad! a dinosaur! it's just a movie. no dad, a real dinosaur! show doorbell camera.

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shery: this is daybreak asia and we are counting down to the market open as we watch the rise in oil prices with opec's plus. and we continue seeing fears over inflation. south korea prices accelerating at the fastest since 2008. haidi: and we worry about inflation and recession fears and according to the fed vice chair, not much of a chance of a pause. annabelle: we are counting down

to the opens in japan, korea, and australia. we will see how investors are reacting to the latest korea inflation print in a moment but first, japan, nikkei life pricing in a few moments but we have the treasury markets opening and yields are moving slightly higher at the open. nikkei coming online, 9/10 of 1% to the upside. u.s. yen pairing in focus today. a couple factors. the yield differential is impacting yen weakness but also we are seeing a move away from risk assets as investors attract to the gains we saw on wall street overnight. australia, asx 200 unchanged at the open. we need to wait about 10 minutes to see full price action. aussie u.s. dollar in focus, moving flat. asx 200 4/10 of 1% to the

upside. mostly unchanged. aussie dollar at the strongest since april. tracking gains in brent crude. lines are from opec. in korea, watching after the fastest rise in price pressures in 13 years and we are watching the one. a code to see a sharp move to the downside not reflected in trade yet so far. shery: let's discuss market action with our next guest. the head of investment strategy at bank of singapore, eli, which markets are you concerned about and could there be upside when it comes to commodity exporters like australia? >> markets in europe look

particularly vulnerable now. they are in the eye of the storm and there is a difficult conundrum between inflation and a challenging growth outlook. [indiscernible] overall i think investors should brace themselves for more volatility ahead. shery: what about the chinese stock market? recently there has been a little bit of a rebound. >> it appears to be better risk reward in chinese equities at this time. a lot of negatives have been priced in. chinese policymakers realize

they need to stimulate more in order to balance between risk of zero covid policy and the fact that economic risks are risen quickly in china. so given that we expect outlook to improve long-term we think chinese equities appear attractive. haidi: one of your preferences is to stay overweight on energy. there are limited options on how to do that in asia. what is your preference? >> the chinese market looks interesting. [indiscernible] it does not mean we could not see a move down but in the

medium and long-term we think the risk reward and the energy sector appears interesting. haidi: how underwhelming are earning expectations and how hard will it be, given that we are dealing with shrinking liquidity and recessionary conditions? >> it's a great question on what every investigator -- investors looking at. financial conditions are starting to impact earnings and when you look at wall street now, most analysts are still forecasting positive growth this year. [indiscernible]

it is something we are watching closely. shery: what the fed does will have repercussions across asia. what will the biggest pain point be in the market from quantitative tightening? >> i think it will be the under pressure on yields. it has impacted markets in a big way. [indiscernible] that will continue pressuring long-duration assets, primarily the equity space and technology sector and will continuing to pressure the yen downward. [indiscernible]

haidi: let's get you to su keenan. >> said vice chair has backed expectations for a rate hike this month and told cnbc she is using a september rate pause. she was sworn in last week and says the bank has a lot of work to do to get inflation down to 2% but she echoed the need for flexibility beginning in september depending on economic conditions. the u.s. has condemned china's policy toward religious minorities. the state department accused china of committing genocide against muslims and highlighted a crackdown on churches in hong kong associated with 2019 protests.

ukraine central bank has more than doubled the benchmark interest rate in their first policy move in four months. borrowing costs have been raised to 20%, the highest since 2015. it is to help pay for wartime inflation. policymakers signaled the bank will move towards rate cuts when prices start to ease. president biden has urged congress to pass gun-control legislation, calling for measures in a national address. he said americans should make gun laws central to their vote in the midterms and called on lawmakers to pass legislation banning assault weapons and high-capacity magazines and to repeal liability shields for manufacturers. 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. this is bloomberg. haidi: let's look and movers in

the early session. >> producers in asia with copper prices jumping the most in york overnight since 2015. a lot of optimism around china reopening. looking at lithium producers, these names have been -- goldman sachs line out said prices would sharply contracted now geopolitical tensions in chile and the new government scrapping the production contract handed out in the final months of the old government, which has put pressure on production. korean travel stock is linked to the local media report earlier saying korea might lift quarantine rules for

unvaccinated travelers following a government pledge to accelerate international flights and they want to get back to 50% of pre-covid capacity in a few months. shery: we will continue to see pent up demand fast and furious and inflation accelerating the fastest in 14 years. still ahead, a deeper dive into oil after opec plus announced a production hike. that is coming up. this is bloomberg. ♪

shery: we continue to see rising oil prices at the moment. brent over 118 dollars per barrel. opec supply hike disappointing. talking about boosting monthly supply hike by 50% in the summer. david stringer joins us for melbourne. 648,000 barrels per day will be added. how significant is this in the

broader scheme of global demand? >> in some ways it sounds like a lock, a 50% hike come up but when we look at the numbers and compare it to the global picture , they will be a little bit more production but is not a huge increase in their are lingering questions about if producers can deliver on the increases they have pledged. haidi: the problem -- is the problem crude supply or refining capacity? >> we see opec and allies focusing on if they can get more and how quickly. we have seen members do that

recently. but increases will be spread across groups. it is clear some have a better capacity than others. saudi arabia and the uae will find it much easier to bring on crude than others. shery: what is interesting is the u.s. hailed this supply increase and singled out saudi arabia and now we are hearing perhaps the president is going to visit saudi arabia. could this signal a sautéing relationship or more -- thawing supply or a better relationship? >> if biden visits saudi arabia, it would be incredibly

significant. the white house welcomed the decision on the cautious move by saudi arabia but there must be some degree of disappointment. i would like to see saudi arabia do more to isolate russia and expel russia from opec-plus and we are nowhere near that. russia very much remains an ally of saudi arabia and at the heart of opec plus. haidi: the eu pushed through that sanction pack should -- sanction package on russia regarding russia crude. does it make economic sense? >> you have seen it reflected in commentary we see in the market. the eu said they will be looking

at [inaudible] whether it is india, china, it is likely those buyers will get barrels at a discount. haidi: goldman sachs is head of commodities research jeff curry says oil markets are poised to get tighter going into the summer. he spoke with alix steel and anna edwards. >> it doesn't materially change anything. when we think about what they did, they compressed three production hikes into two months so he does not really change the terminal level of production in the market tried to price in a bigger terminal level of production in the last several days so what you are doing is getting a rebound rally back to

levels we were before rumors hit. i think the key message here is distributing potential russian supply across other members of opec, they cannot hit their quota. so they are already significantly constrained in their ability to increase with the exception of saudi arabia and uae. so when we think about how it changes the fundamental picture in september are terrible are, it doesn't really -- september or october, it doesn't really do anything, and that is why the market is rallying. shery: you can get around up of all of the stories you need to know to get your day going in this edition of daybreak. available on the mobile and the bloomberg app. customize things so you only get the news on the things you care about. this is bloomberg. ♪

shery: a lot of green when you look at trading across asia right now. we are seeing energy and tech leading the gains. brent over 117 dollars per barrel and the kospi up 6/10 of 1% after we saw inflation numbers accelerating at the fastest pace since 2018 -- 2008. asx 200 up 9/10 of 1% and aussie dollar remains unchanged. we saw it gain ground in the previous session. the kiwi dollar remains steady and kiwi stocks are reversing losses and gaining half a

percent. haidi: let's look at how stock futures in europe or opening. a quiet session. european equities climbing. thursday was the first update and we saw leadership in cyclical stocks. we are seeing a buoyant future, 1% higher for euro stocks 50 futures. u.k. london trading was closed on account of queen elizabeth's jubilee. the market is set for a boost and britain shrugged off inflation concerns and cost-of-living concerns and celebrated her 70 years on the throne. these numbers are eye-opening. tesco says they expect to sell

$4 million of --'s 4 million bottles of gin. all the patriotic staples are expected to fly off the shelves. you can see this is a great excuse for celebrations and parties after two years of covid restrictions. supermarket sales up 2.3% as families and friends prepare. shery: let's get a quick check of the headlines. kohl's has repeated -- kohl's has received competing takeover bills -- bids. there board is expected to meet to review the bids in the coming days.

apple is set to have agreed to make work schedules more flexible at retail stores. they have informed staff at some stores that scheduling changes will take effect in the coming months as part of a push to appease employees in the face of unionization efforts after some retail workers voiced frustrations about their schedules. management fees are cut after losses reached 52% this year and several -- and separate accounts will be created for tiger global. they were hit by losses in several stocks and huge markdowns in private assets. we continue to watch repercussions of the city trade. in may we saw massive losses during the bank holiday around

may 2 and now we are hearing it was done because of a london trader working at home and he added an extra zero which is now resulting in $50 million of losses for citigroup, maybe more. haidi: this is one of the most well read the stories on the board. they have been trying to increase revenue from stock trading. they had a 25% gain on the year in 2021 but there is a lot of talk about this incident and talking with regulators. mark cooper says there is too much uncertainty to declare that markets have hit volatility.

>> my judgment says there is too much uncertainty in the marketplace to say we have reached peak volatility. too many things are happening. the fed reversing qe2, the war in ukraine, interest rates going up and how much they will go up, there are just too many unknowns, too many big items that create volatility in the markets. markets like certainty and with free flowing anxiety, it creates ups and downs. reporter: what if earnings start to turn? it could be another leg down. >> to me that is the big one.

and do earnings fall. we potentially talked a lot about headwinds for companies and for the consumer. earnings are good and the company is doing well but the question is what that will look like in 12 months. from an m&a perspective i would bring it back. the market is pretty much flat year to date versus 2019 and that is interesting. 2021 was a lost -- was the year of transactions. 2020 was lost. 2019 was good.

and we are flat. so more activity is going on than we would like to believe. despite your chart which talks a lot about my kids -- about private markets. they have been aggressive. debt capital is interesting new phenomenon and that marketplace. private debt capital is still fueling a private equity market. shery: mark cooper speaking with anna edwards. up next, blackrock ceo says inflation is here to stay for years and the fed will not have the necessary tools to deal with it anytime soon. that interview is just ahead. this is bloomberg. ♪

shery: let's start with japan. we are getting may pmi numbers coming in. 52 .3, a slight acceleration from the previous month. the services number a 52.6, higher than the previous not -- previous month and two months of the pmi numbers are staying in this territory. japan really pulling out of pandemic restrictions and services have stayed strong. singapore is coming in pretty strong. global singapore pmi, 59.4, much higher than the previous month

of april when it was 56.7. slight cooling in these numbers across asia but at least with japan and singapore, the numbers are looking stronger. >> that's right. be ok was looking for a justification to raise rates and now they have it. inflation rose at the fastest pace in 13 years. up 5.4% in may. in the currency space, it is a risk proxy and gaining against the greenback in the past few sessions as we see more risk on action in markets. the biggest move in prices in korea in inflation, fairly broad . transport, restaurant, home where. life is looking more expensive there.

how that is playing out in the stock market, the same groups on a one day and also year to year basis. they all see broad-based gains. travel stocks are another focus for us. haidi: we are seeing more demand in korea travel and relaxation of quarantine requirements. >> that's right. basically earlier the government said unvaccinated arrivals won't be required to 14 for seven days, a change from the policy before. shares started to rise this morning and it followed a government announcement saying they want to get international flights back to pre-covid levels , 50% of that level by the end of the year. haidi: investors around the world are focused on inflation with frontline remarks on

thursday from the fed vice chair who says she sees no reason for a september pause on rate. kathleen hays is here. the message, is it likely to change by the jobs report? kathleen: she made it clear that she believes in 50 basis point rate hikes and thinks they are needed but the main job of the fed is to keep the focus on bringing down inflation and it sounds like she is shutting the door to a september rate hike pause. >> right now it is very hard to see the case for a pause. we have a lot of work to do to get inflation down to the 2% target. kathleen: later loretta mester amplified other points made.

both sides of the inflation story and what it will mean for rate hike continuing or pausing. >> if by september if that monthly readings on inflation provide compelling evidence and it is moving down, rates could slow but if it is failing to moderate, a faster pace of rate increases could be necessary. kathleen: so will the jobs report that people think maybe won't be as hot going to change the message we are hearing from the fed? payroll is expected to rise 320,000. that's a healthy report but it would be able -- it would be the first time they have been below 400,000 in over a year. the unemployment rate is supposed to hold at 3.6% of the lowest since 1969.

paychecks are rising at a 5.2% year-over-year rate. not as hot as 5.5% but in the average, the average has been less so it is still a strong member. stephen stanley said it well. the fed is focused on inflation, that determining what they are going to do. inflation drives their decisions. not the labor market. so they will observe this but the focus is still on making rates higher and a september pause is not a done deal. so we will just have to watch the inflation numbers and that will tell us. shery: she said everyone has an opinion on where prices are going. the ceo of blackrock says he expects inflation rates to remain elevated for several years. he said the fed does not have

the tools to deal with inflation right now. >> the market has recalibrated itself and we have witnessed a change in policy and the fed and we have raised short rates so we saw a recalibration of stocks. that is the majority of the downfall and yet the index is masking the problems because part of it is companies that are up a bit so when you look at the volatility in the market and the spread between winners and losers is broad this year. we took out a lot of gains we saw during covid and the years where we were amplifying different companies and now we see the reverse impact. now there is greater recognition that inflation is not transitory . it is probably with us for a number of years. and it is the type of inflation i do not think the fed has the tools to do much with now.

and i am not blaming the federal reserve for where we are, but i believe most of the problems we are living with today are more policy and supply generated. demand in now in our economy is equivalent to pre-covid so we are witnessing supply shocks and that is creating intended price increases. so it is more supply driven and it has been aggravated by covid and lockdowns and the ukraine-russian war and where we have supply shop but i think much of the inflation has been generated by large policy shifts in the u.s. >> and we are talking about a hurricane. what is the chance of recession in 2023 or 2024?

>> i think jamie said one outcome could be a hurricane. it might not be that. it sounds perfect for the media. hurricane. i could see scenarios where it could be white bad -- could be quite too bad, another downward draft of significant and that will be dependent on earnings going forward. but i could also see a scenario where we will be muddling along for the next year or two, right around this level and may be up 5% or down 10% but we will be in this range. one thing i will say with total certainty is that we will be living with more uncertainty. so we will have bouts of fear that will bring down the market and more confidence forward -- going forward but we have not witnessed huge as it changes by

our investors. shery: the focus globally now on price pressures. the latest from the bank of korea, the 5% level will continue in june, july after the main inflation gains came in at 5.4%, the fastest since 2008 and the first time they surpassed the 5% level in 17 years. the be ok saying high inflation bite continue for a considerable amount of time, a sentiment already expressed by the finance minister this week, saying they expect cpi inflation to remain in the 5% level to remain for some time. transportation costs led the gain and inflation at the fastest pace since 2008 in south korea. >> european union union has

approved a six package of sanctions including a powerful ban on russian oil after hungry dropped objections. the toughest measures will ban the purchase of russian crude in six months and refined petroleum products in eight months. pipeline crude will be spared for now. biden is reportedly traveling to study abb -- traveling to saudi arabia to repair relations. he will meet with crown prince mohamed bill solomon and leaders of other arab nations. as a candidate, biden had vowed to make saudi arabia a pariah after the killing of jamal khashoggi. and opec-plus will open up oil faster and the company -- in the coming months.

the boost works out to less than half of a percent in demand globally. crude has risen to over $117 per barrel. chinese officials have vowed to carry out policies to stimulate growth. authorities from the minister of finance says they will accelerate and make it easier for small companies to bid on government projects. the pboc promises to use monetary policy to help maintain growth. 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. this is bloomberg. haidi: millions of shanghai residents remain under strict

lockdowns despite authorities claiming victory over the latest outbreak. we saw celebrations across the city earlier this week but for some parts of the population come it is not over. >> that is really. it is not widely known that 10% of the shanghai population, 2.2 5 million people, are still under intense restrictions and confined in lockdown to their homes because typically there has been a covid case in their apartment or neighborhood so there are stringent members being applied when a case is found. it's interesting because today we have seen seven cases reported outside the government mandated quarantine and shanghai. that's one of the highest numbers since we started easing out of the lot down there.

it will be interesting to see if that elicits a response from authorities or a dialing back on the freedoms that have been trumpeted in the chinese state media. shery: and singapore has opened significantly since the covid lockdowns but now they are expecting another wave this summer of infections. >> yes. you are seeing that covid is here to stay so you will see it waxed and waned as it has been doing since the pandemic emerged. what is different is the way different countries respond. australia, the u.s., a lot of places seem to be moving on and treating covid like an pandemic. the singapore wanted to reopen

but in projecting the next wave coming they talked about preparing the health care system and putting measures in place in order to handle the uptake in infections. this is the sort of thing we will probably see for some time until there is a more universal vaccine come if it ever happens. but what we are seeing is that covid is moving into a more flulike pattern where it will wax and wane. shery: two thirds of the world's population probably have significant covid antibodies at this point. up next, megatron reported a deep loss with china's lockdowns holding -- hurting the food delivery business. we will get information on that and more. this is bloomberg.

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haidi: a chinese food delivery giant has offset the slump from the lockdowns in china. we will see how shares react when china is back from the holiday on monday.

this was the trading overnight amidst a broad rally across equity markets, up 8.5%. joining us now is the managing director of capital advisors. what is your take away from the numbers? is there a sense that the company is resilient despite the difficulties of the lockdown? >> if you look at the first quarter numbers you see resilience because covid started late march so if you look at third quarter results of the food delivery, they increased 15% to 20%. total revenue. the margin also. i don't think investors care about second quarter results. what is more important is if

there is a recovery trend after the widest lockdowns have been released. there financial report demonstrates those tracks. [indiscernible] it is the best-performing stock. a more competitive landscape and investors believe the covid setback is temporary and it could deliver stable performance. haidi: there seems to be strength in the grocery segment. are you more positive when it comes to make time high? >> that is in two parts but they

are both related to grocery. this year they are trying to control -- improve the union model. [indiscernible] in another way they are entering a more mature stage where they can maintain market share. shery: what do the results tell you about the broader markets, especially when it comes to chinese tech names? >> i think basically you see there is a rebound to china tech names but labor is one of the best performance stocks. broadly speaking i think it is pico -- it is because people are

less concerned about regulation and improving the margin. [indiscernible] shery: blue lotus capital managers director, good to have you back. coming up, looking at the ends latest decline and what investors are saying. details next. this is bloomberg. ♪

haidi: the yen has studied around the 129 level but the latest has market watchers debating if they will hit the key level of 135 per dollar. for more, let's bring in ruth parson. where is this going? >> that's the golden question when it comes to the yen. macro traders asking yen reach 135, the key level to watch.

treasury yields would have to stay firmly above 3% for the yen to reach the level from last month and it would likely be a slow grind higher for the dollar-yen. but don't write it off yet. bank of america has said it is achievable and that 150 could be in the cards of policy divergence between fed and boj continue to play out. haidi: a lot of these assumptions hinge on peak inflation in the u.s. and peak dollar. >> absolutely. it is an inflation story and the fed officials have said they need to raise interest rates to halt the inflation but as long as that story of high inflation and high interest rates in the u.s. is playing out, eight dovish bank of japan will only

be negative for the yen in terms of strength. so for macro traders it is top of mind. how high will u.s. inflation go and how low can the yen go in this environment. haidi: we will be watching the dollar and a lot of data points as we get into u.s. jobs day. this is almost in the back view for the fed because they are looking at inflation, not so much the labor market which is hot but in the u.s. labor market , there is such a dichotomy when it comes to stock and reduced hiring and difficulty in finding skills and talent in other parts. shery: a little relief in today's market session as we saw the hiring slow down in may with numbers missing estimates but

really the focus has been on payrolls. we expect 323 jobs to be added to the american economy but this is a cooler labor demand than we have seen in the past and we have seen already with job numbers and jobless claim numbers and how treasuries have reacted, that is a space we will be watching closely. right now we see treasury yields are falling in the asian session as asian stock markets are higher with the nikkei up about 1% and the japanese yen studying now around the 130 level. coming up, ameritrade financial says job growth is slowing as businesses become concerned about an economic downturn. and power sustainable believes the worst is over for chinese stocks.

they explain why, just ahead. this is bloomberg. ♪ and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create