haidi: you are watching daybreak asia. >> counting down to the major market opens shery: investors wait a jump in treasury yields, the rba is set to deliver a second rate increase. the war in ukraine continues.

>> the 135 handle is in focus. technical resistance are reaching that level. could be quite difficult. we are seeing a split between economist, traders, some calling for a 25 basis point move. shery: little bit of a difference in the u.s.. the treasury slump is being held by corporate bonds. we saw that capping the gains. right now, u.s. futures are

declining to tense of 1%. we have the s&p 500 rallying because of beijing easing covid restrictions. , zion is rising, twitter. prices. continue to watch via doubling down -- india doubling down on russian supplies. take a look at the rally we saw. didi gaining 20%. , reports authorities may be easing and wrapping up the investigation of the company. perhaps, some tangible concrete evidence that the regulatory

backdrop is improving in china. haidi: let's get to stephen engle and hong kong. we have been talking about this inflection point for chinese equities for a while. is this still meaningful? stephen: yes. more evidence that the regulatory crackdown on tech is over as authorities in beijing are seeking growth to put a floor of economy. investors have been looking up to beijing to find a floor. alibaba became the poster child but data security which was the problem beijing had with the ddi

theo -- didi ipo that went ahead despite rick the tory concerns in the weeks leading up to that. they went ahead with it anyway and we have seen the carnage on wall street. it's trading at $2.39, it was $16 on july 1 of last year. wall street journal is reporting , to other chinese companies were under regulatory support make -- all three of these companies saw their shares rest quite sharply.

this regulatory probe into data and national security issues is likely over, the wall street journal is reporting they could face sizable financial fines as well as transferring over 1% of the company to the state, this is the wall street journal. the state could have a bigger say in the operations. shery: the focus is on sterling as well. did not do much, shrug off the no-confidence vote. >> not that big. it was small. he is in a very weak position. the reason you see the pound not reacting that much is there is very little sense at this point

that it would matter if boris johnson left the post, and because this is not a policy or ideological challenge, it's about himself, his personality, if not like trying to get rid of margaret thatcher or theresa may, there is a sense now among conservative mps that boris johnson is not going to be trusted. there is no great thing they are going for. this is very bad for him, there is no obvious reason why you would sell the pound on the basis of it.

haidi: to that point, we saw the pound holding some gains. is this ongoing instability, what does that mean for the market? >> it's a much more deeper problem, even though the u.k. government itself has a pretty pessimistic outlook, stagflation is running at a multi-decade high. as far as traders are concerned, they are watching the interaction between the bank of england on the inflation front, and until there is more clarity the bank of england is prepared to get tough, risk a recession, they will not get too excited. if the ecb surprises people by

being hawkish, the euro sterling cross, there is room for the euro to rise against the pound if the ecb is tough. so much of it is out of the u.k. sands. shery: we have the regulatory landscape, what are we expecting this week? >> investors will be happy to see anything that suggests the clampdown has come to an end. that was one of the biggest problems for the chinese market over the past year or so, from day to day, investors did not know who was the tech company that was going to get bashed by authorities. anything that takes that await has got to be a good thing.

of a slick, people have been saying for some time that chinese equities are in pretty good shape. one of the other interesting things as we have seen the indices in china start to improve, they have been creeping higher. volumes have been very low in comparison to what we are used to. that suggests there are people on the sidelines. they may have bought into this idea that china is on investable. people start panicking. we might get a bit of people rushing back into china. shery: a lot of volatility. let's get to su keenan. su: singapore is advancing the leadership succession plan. the 49-year-old becomes one of a

deputy and will be the acting p.m., he was named leader of the party in april, it remains unclear when the succession will take place. the sri lankan president says he will finish the years on his term despite protests. we spoke to bloomberg in a rare interview, he says he won't stand for reelection but cannot go as a failed president. thousands of protesters have camped outside the office, blaming him for the economic crisis. bloomberg has learned india is eager to take on crude from russia, sources say refiners are in talks for a six month supply contract. this would be on top of existing shipments.

many international buyers have turned from russia since its invasion of you and. twitter says it will hold elon musk accountable for the terms of his takeover offer. this after the billionaire threatened to pull out of the deal. must believes twitter is preaching the agreement. shares fell again in new york. 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 su keenan. this is bloomberg. shery: coming up, j.p. morgan says the risks of a u.s. recession are increasing. we will discuss that and the rba upcoming decision with a global market strategist. plus, we are live at a sustainability event.

haslinda is on the ground. >> business leaders are gathered to discuss how to accelerate action to achieve net zero. we will be speaking with the energy futures initiative and [indiscernible] be sure to catch those conversations here. this is bloomberg. ♪

>> in 2020, we were carrying 3.5 million people. by april, 11,000 people. huge drop. it was really challenging. the first thing is cash.

we were burning cash. >> with global central banks stepping up the pace, that is a reflection of the increased global inflation pressures trickling to australia. haidi: let's take a look across how aussie assets are trading. steady as she goes. markets are pretty evenly split.

we heard from ubs saying it's a phenomenal trade, they see $.76 for the aussie by the end of september this year. pretty steady when it comes to sovereign bonds. let's bring in our next guest. he is expecting 40 basis points. great to have you with us. more aggressive and more hawkish, there is no expectation when you take a look at that today that there will be any kind of done point. why should or what they be going for a bigger than expected hike to frontload, given the wage

spiral, the inflation pressures are not as bad here? guest: good morning. it's getting back to neutral. that's what we're are seeing larger moves. inflation dynamic in australia it is different to what we are seeing in the u.s. and europe, you have more -- here we see positive momentum in the economy. we see flexibility in the labor market. that creates an environment where the rba can hike rates without too much damage to the economy. they will move to get back on the incremental 25 basis point path, they hinted they were keen to do that at the last meeting, they see these 25 basis point increases as being normal, that is where the market is split. it's a case of getting back to

the normal level of interest rates by the end of the year, that's why we expect them to do what he basis moves. keeping in touch with the larger moves from the u.s. and elsewhere. they are leaning away from official data when it comes to wage growth and thinking more about what they're hearing. that gives them scope. inflation is above the target. they are keen to cap that off before it becomes embedded. haidi: there also getting big help when it comes from commodities. take a look at this chart. spot commodities hitting a fresh record highs, the correlation at

an eight month high. with a be thinking about -- where do you see the opportunities when it comes to a continued commodities boom? guest: the commodities outlook is important. at the first point in creates higher incomes, the fiscal position of the government, it creates the potential for stimulus if they needed in the future, that is another good component for why australia is different. if you look at how elevated commodity prices are whether it's oil, we start to see those come off a little bit.

that weighs on the direction of the australian dollar for a little bit. we would expected to be higher by the end of the year. we are seeing a closer to $.74 rather than thinking $.80. we are thinking about the interest rate differential between the u.s. and australia, what it means for currency. economies are hiking those rates. shery: china is so important for the direction of the commodity space. given an improvement, not to mention covid restrictions being eased. every time we see the pop in chinese assets, -- guest: they are facing and unappealing trilemma of a growth target, zero covid policy,

trying to deleverage the economy , when the demand comes back, not facing inflationary pleasure. looking at supply chains and thinking about how to support the housing market a little bit more in terms of what we are seeing. that is positive. on the flipside, encouraging news around the regulatory environment and that's very important, increasing regulatory risk. thinking about implementation, thinking about clarity, what that means, and as the reopening trade continues to gain traction, you will see chinese assets perform better in this environment.

shery: always good talking to you. the global market strategist at j.p. morgan. get around up of all of the stories we have been discussing today. jd go is the function on bloomberg, customize your settings so you only get the news on the industries and assets you care about. this is bloomberg. ♪

shery: we're counting down to the start of trade. some stories are watching. in japan, we are getting cash

earnings. we will break those numbers. we are watching the yen, slid to a 20 year low. way down, widening gap between yields. on the corporate front, we already in six g. i am just getting used to 5g. haidi: i might still be on 3g. quick check of the latest business flash headlines. sources say the ftc is investigating whether binance broke security rules. we are told the regulator is looking into whether it was a security sale. binance faces multiple investigations in washington. it's the fifth biggest crypto. paramount is being sued over top gun maverick. they are accused of releasing

the blockbuster without securing a license from the estate of the writer whose story inspire the original film for decades ago. they claimed the studio had been on notice and 2018 but the copyright to the franchise was terminated. paramount says the claim is without merit. amazon rose since the stock split. shares gained 2% in new york, but the stock is still down about 10% according to march. amazon said the move is accessible to average investable. didi global surged on news regulators have ended their investigation. the wall street journal reported authorities will allow didi to restore the app this week. didi and other tech firms are expected to take financial penalties. shery: coming up next, we talked to a former u.s. energy secretary from the energy

futures initiative live from singapore at the sustainability events. that's happening right now. take a look at the commodity space. we're talking about gains a natural gas, we have more optimism the men may be recovering and asia with china easing the virus restrictions and reopening shanghai as well. plenty more to come. this is bloomberg. ♪

shery: we have breaking news out of japan, take a look at household spending numbers falling 1.7%, a much bigger fall than what was anticipated for the month of april year on year. the fall has eased slightly from the previous months, but we know that higher prices are weighing on household spending at the moment. we are talking food, energy prices all rebounding in japan as well. we have labor cash earnings you're on your a growth of 1.7% for the month of april, which is a slightly larger number than what was anticipated. just for inflation, given we have inflation pressures everywhere, and japan you have real cash earnings you're on your, a contraction of 1.2%, still a smaller contraction, then one economist has expected for the month of april. let's turn to the markets, as you see the japanese yen, 132

level, pretty weak. haidi: that's right we have the 135 and that is the next level to watch. we are keeping an eye on a treasury yields ahead of the open of cash markets on the top of the next hour. >> pretty flat in futures trading but we see the growing differential between japan and the u.s., putting further pressure on the yen, trending more than a 20 year low. aussie bonds selling -- steadier. there is a split we are seeing between the size of the expected hikes from a move of 25 basis points up to half point hike. turning the board to the terminal for another major thing where watching, that is commodity prices, seen at an all-time high. if you bring up this chart. the spot index which tracks prices for 23 raw materials, we are seeing prices soar, since bottoming out in the early days of the pandemic. you can see that now but starting to climb.

most recently by signs that china's easing its toughest covid zero measures. we can take a look at what drove that most recent move. natural gas prices is one of them, meanwhile, natural gas and wheat prices have been repellent, concerns oversupply trying -- chain -- over supply chain constraints. haidi: let's take a look at what is going on in singapore. the annual sustainable ability event ecosperity week starts in singapore brings together global business leaders, policy makers to talk about real solutions to accelerate asia's green transition. let's get straight there. haslinda amin is standing by with our next guest. >> we are talking about sustainability at a time where the world is grappling with not

just a climate crisis but also an energy crisis. let's put all of that into perspective. ernest moniz is founder and ceo of the energy futures initiative and the former u.s. energy secretary. at the end of march you talked about how you expected all supplies to be back into the market. we would not be as tight as we were before but here we are. two to three months on, with an energy crisis. what was missing in your calculations back then? guest: to be clear i was talking about the oil markets. the oil markets have always been very liquid, very difficult to sanction. we are seeing china, india and others soaking up a lot of oil that is not going elsewhere. but i think there is uncertainty going forward, at this stage, more because of the embargo on technology imports to russia, on the pullout of the western companies on the question is whether russia will be able to

maintain the expertise and technology to keep pumping at roughly 10 million barrels a day. haslinda: on a longer-term perspective, on the medium-term perspective how short will would be in terms of oil, even other energy sources? guest: russia is down 10% in production. the question is, if the chinese keep pushing up there purchases, with bigger and bigger discounts per barrel, russia will probably keep producing oil and frankly regrettably in the ukraine context, collecting quite a bit of funding to continue their activities. haslinda: it is collecting. estimates suggest oil and rapid use for you -- russia what amounted to $80 billion countering its frozen assets of $300 billion. what needs to be done to stop russia from producing and for asian economies and countries come the likes of china and india to stop buying russian

oil? guest: it's very difficult to stop them from producing unless things like the technology embargo bite hard. if they start losing a lot of equipment and cannot replace it, they will cut back. again, i did distinguish oil and natural gas. natural gas is a different issue. you don't have the liquid market. you have a big pipeline from siberia to europe. you can't but those cargo somewhere else, as you can with oil. now, lng is beginning to do some of that. but it is still very early in that game. i think the gas markets -- we have seen the prices reflect, perhaps even more in the gas markets, the great uncertainty in where russia, one of the big boosters in exporters will send its gas. haidi: how does this volatility potentially push back or complicate the transition to a greener energy future?

guest: again, it is mixed. in the near term, there is no doubt we are seeing it. we are seeing more commitment to new coal plants. as various countries worry about reliability. let's face it, if governments cannot provide energy supply to their populations, it has a lot of unrest. similarly, if they cannot provide food at reasonable cost, there is a lot of unrest. we are seeing that as well as part of ukraine situation. going back to energy, we have bumps in the road. but on the other hand, if we go back to 2014 what russia first had the crimea, the g7 and the eu came together to modernize what energy security means. in doing so it pointed out, among other things, the traditional measures that were still there, diversification of

supply, emergency supply, but new elements came in, liquid markets, new infrastructure. most importantly, clean energy and efficiency. clean energy, clearly does not suffer, from the pitfalls that hydrocarbons do in terms of supply. so, longer-term, this has to provide more pressure towards accelerating the transition to clean energy but it is going to be a bumpy road to get there. shery: we have seen the shift in rhetoric when it comes to nuclear energy, the in politics as well. the last time, we spoke, we were talking about the challenges and risks coming from the likes of north korea's nuclear program. you warned of nuclear calamity given the risk of nuclear weapons as well. how do you balance that -- those two out? guest: well, first on the nuclear power side, there is no doubt you are correct. the attitudes have changed

dramatically in many parts of the world towards nuclear power. that is happening at a time with great innovation. it is not clear the actions of governments or the private sector are following that more positive view. because the reality is investments in nuclear power are going to take a stronger public partnership. for the private sector it is a multiyear, very high capital investment, which still has a lot of uncertainty. i think what we need to see is governments moving together, with the financial sector and with the equipment providers to get nuclear power plants new power plants over the finish line. with regard to nuclear weapons, it is a different story. the thing, north korea is making more moves towards testing. but frankly, what bothers me the most is the way putin has rattled the nuclear saver in

ukraine. this is a profound shift for decades, the u.s. and the soviet union, then russia, had the only two very large nuclear arsenals in the world. and they both understood that the fundamental reason for them was to prevent the other from using it against them. now, when putin went into ukraine, it was very different. here, you have a nuclear weapon state invading a nonnuclear weapon state and saying, be careful, i may use my nuclear weapons if you outsiders start to interfere with my takeover in the ukraine. so far, that hasn't happened. they have not been used but that is a profound shift. one which, when the shooting is overly ukraine, we are all went after come to terms with in terms of new nuclear weapons order. haslinda: nuclear power is clean. it's without any carbon footprint and it can be produced 24/7.

should countries like germany for instance keep their nuclear power plants open? guest: every country will make its decision and i suspect germany is too far down the road. but i think a lot of other countries in the united states there is interest in building out other parts of the world. in the middle east and eastern europe. so, again, is this question of making those projects investable, with enough confidence for long-term investments. i might mention one other thing, which is important here in singapore, that is keeping an eye on nuclear fusion is another possibility for the future. because feet -- nuclear fusion, if it works, but things are changing, it is looking much more promising, nuclear fusion what have the benefits of nuclear vision power, like being a baseload resource and clean

but without the waste challenges of nuclear power. and without any safety issues for the public whatsoever. so, i think we are going to know in this decade whether or not it works. if it does work and we start seeing power plants in 2035 and 2040, it is a complete game changer. assuming, reasonable economic risks can be met. haslinda: thank you so much for your insights. the net zero 2050 is getting a bit more complicated. shery: you will really delve into that question of course as we continue to have more guests from singapore. haslinda amin has the event coming up and guests like chief of sustainability officer and toyota daihatsu of engineering and manufacturing. let's get the vonnie quinn. >> boris johnson has defeated the challenge by rebels to remain leader of the governing conserving party and keep his

job as per minister. the 211 21 48 vote exposes a bigger rebellion than the one faced, was ousted as premier six month later. pressure has been building on johnson for weeks over already gate events, during the pandemic. canadian prime minister justin trudeau has condemned china over reports that it's fighter jets buzz canadian patrol flights which were hoping to impose a sanctions on north korea. he called china's actions irresponsible. the comments, a year after canada's defense department say chinese jets were putting the safety of pilots at risk. hong kong have pushed case numbers to a six-week high. some classes have been suspended but school closures so far have been avoided, despite the spike, hospitalizations and deaths are low. the government may revert to stricter curbs.

turkish -- the turkish president says the government will continue rate cuts even as inflation source. the central blank has kept the benchmark rate at 14% since december. the countries went 73% as of may. after extended losses after the residence comments of emerging-market currencies. global news 24 hours a day on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries around the world. i am vonnie quinn this is bloomberg. . haidi: the quest reaching 20 million evs as electrification of transport comes more prevalent. it is achieving at zero, we will be discussing that with energy finance. ♪

haidi: we are tracking the fallout of the global supply chain crunch and these are our top stories. president zelenskyy says ukraine is in talks with the united nations on ways to arrange grain exports. the war-torn country has 22 to 25 million tons of grains blocked from leaving it sports. stockpiles may rise to up to 75

million tons in the coming months. australia one of the world's largest wheat exports is to produce another huge harvest this season, the favorable conditions encourage growers to ramp up levels. wheat production is estimated over 30 million tons of 22% above the 10 year average. apple has unveiled the most significant overall to its popular macbook air and more than a decade with a new design that uses apple's home chip. it comes a year late after the 2021 launch was delayed by supply chain snag. shery: take a look at the commodity space, as we continue to see the huge gravity. attracts prices for 23 raw materials reaching another record high. you can see the jump in all of those prices. wti crude extending those gains we saw in the new york session. natural gas under a bit of pressure, this after jumping to another record high, given that we continue to see tighter than

normal demand across the year in the u.s. you mentioned those green prices as well continue to rally. bloomberg terminal users can read more about those stores in our newsletter supply line. almost 20 million electric passenger vehicles are on the road. bloomberg expects that number two more than triple over the next three years, with electrification expanding to everything from scooters to delivery trucks. let's bring in our head of aipac research, for more on this report. sales are on track to reduce emissions? >> the good news is under our car transition scenario which is primarily driven by market forces, doesn't assume any new policy interventions, we are on track to hit the commissions from the road transfer sector by

27. just five years from now. emissions would fall by about 44% by 2050 relative to 2019, pre-pandemic levels. that is the good news. if you want to be at net zero by 2050 we are still very far. i mention 44% decline. that is not 100%. we would need to see a lot more of toleration -- acceleration, in passenger vehicles and commercial vehicles. haidi: there's a lot of concern that battery demand, when it comes to raw materials, cannot meet that demand. what are we seeing as an impact? >> the numbers on the demand side are staggering. in our outlook under the transition scenario in 2030 would be around 3.5 annually, this is 12 times the demand,

under the net zero scenario we would have to have around five hours of annual demand in 2030. about 17 times in 2020. the good news is reduce significant investment, particularly on the manufacturing side, it is less of an issue. where there needs to be more investment is upstream on the mining and refining. for example, for lithium, right now we estimate we need just under $14 billion worth of investment to bring up some of the proposed lithium production facilities online to meet the demand by 2025. shery: tell us a bit more about the supply side of things. we have enough of those battery materials? what i hear on the ground, those minors of these materials is that there is not enough investment to bring everything that is needed for these -- the electrification of the future. goldman sachs said the battery boom metal is over.

>> right. to the reserves, there is sufficient reserves available. the challenge is converting those reserves and opening minds and having to -- the refining capacity. the other side is a manufacturers and their suppliers have been a very good at innovating. if you look at cobalt demand, the estimates we have, a couple years back were a lot higher than what we have today. we have seen automakers as well as a battery suppliers switch to chemistries that have zero or lower cobalt dependence. you are seeing a similar outlook in materials as well. on the lithium side, there still concern, partly because it takes five to seven years to bring a lithium mine online. the challenge is an issue of tightening, not an issue of physical reserves available. haidi: head of aipac research. coming up on daybreak asia, the

yen has slipped to a 20 year low against the dollar would take a look at how the bank of japan is becoming increasingly isolated. the aggressive military demand. this is bloomberg. ♪

haidi: take a look at the yen weakening in the morning session. we had the labor cash earnings data. of course, this comes as it slid to that to decade low, against the greenback pressure continued to rise from the widening differentials with the u.s.. from war on where the yen goes from here, let's bring -- from more on where the yen goes from here. we know the interest rate continues to drive this gap. do we expect to see intervention or what comes next for the yen? >> i think it is fair to say that every time the yen hits a new low, against the dollar, talk of intervention inevitably comes into conversations across trading rooms. as you rightly pointed out it is a story of interest rate policy diversion. until that treasure releases, it is always going to be expectations of how low can the yen go, will the boj be asked to intervene in one way or another?

historic's slide. there will be talk about it around trading rooms. shery: how low could the dollar? we know the 2002 level was 13515. >> yes. it's quite an interesting dynamic they're playing out in markets. you have tokyo japan based both saying, it is going to be really high to hit the 135 mark. if you look at the action over the last couple of days, in the young didn't -- london an new york sessions we could get there pretty fast. investors are saying the yen -- bank of america is expecting 140 at some stage. you have society general saying 150. goldman sachs says the yen is an opportunity to buy. it depends on who you speak to. the general consensus overall is yes, more weakness ahead. 135 cannot be ruled out.

shery: surprised to see 132 being topped minutes ago. of course, coming up in the next hour, we will have plenty more on the markets. we will discuss how apple's new offerings could impact the iphone maker sales, stock price, that is coming up with high-risk financial partners. we will be live from ecosperity week and singapore. we speak to ivan feinseth about how it is investing in asia's green transition. the market opens in sydney and tokyo our next. this is bloomberg. ♪

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>> this is "daybreak asia", we are counting down to asia's major market opens after chinese adrs jumped here in the u.s. session. we have seen and perhaps covert restrictions continue to be eased, but we will see if this rally can be sustained or if it's just a number for chinese assets. >> another inflation point, we've been here before but contending with record high commodity prices again. that's really going to way more into the inflation. this take a look at the market open here in asia. >> treasury yields are the other big focus. we get the open of cash markets outside japan, south korea and australia. treasury yields hitting above 3% in the previous session, so we will see how they open. that has been putting further pressure on the end but treasury

yields are rising flatly. still above that 3% handle. the yen is a big focus. now moving above 135. our markets live team say the only thing that can stop us from getting there is a strong intervention signal from the government. meanwhile we see japanese stocks getting a boost from the yen weakness. particularly the tech and experts names. they are resuming trade today following that long weekend holiday. we are see foreigners dip their toes back into the market, particular into the likes of the caused act with sk hynix and samsung. there are the moves in the nasdaq and the u.s. overnight. turning now to australia, and we do have the aussie dollar and yields looking fairly steady ahead of the rba rate decision where we are expecting the first back-to-back rate hike in 12 years. ozzie stocks looking pretty flat at the start of trade. finally in the u.k., ftse 100

futures opening 1% to the upside. we did see the pound fairly steady after boris johnson won a no-confidence vote over his mp's. haidi: let's get more on the top market themes we are watching. our chief north asia correspondent stephen in marker with us. those adrs have pricing out the government crackdown. we have heard hints of this. it seems like it was a substantial development. quite certainly, as investors we want to believe that the crackdowns are coming to the end, and you could see the performance of the shares have a fantastic rebound. so people seem to be more confident that the chinese government is backing away from cracking down on every major tech company in china. that will certainly be a huge relief. you consider the valuation situation were china being relatively inexpensive compared to the rest of the world. there's a lot of people that

want to get back involved in the china market. you could see the decent rally overnight. it will be a long way to go if china, tech companies in particular, reacquaint themselves with where the nasdaq stocks are. there would be a bit of upside from here. there's a long way to go because there's a lot of people in the pipelines and new can see the trading volumes for onshore markets are in the past couple of months. so a lot of people are very skeptical about what's been going on from the authorities and they don't want to get back into the markets too early. there have been so many setbacks over the past year. if we do see trading volume start to pick up significantly, that could be the signal -- particularly the medium-term to long-term investors are getting more confident in the money is flying back into china. people will watch how the situation goes. especially the stocks and with the tech names in particular. so it's early days, certainly there are more green shoots

appearing in china than there were a few weeks ago. shery: you can't blame investors for being skeptical, given we have heard so much rhetoric so far on the easing regulatory crackdown moves. but those have not come yet, so what is the wall street journal saying there could be tangible find perhaps that investors could take away? stephen: i like the terminology used at the top of the show, head fake. perhaps at the regulators in beijing. i'm not shows -- i'm not so sure they are necessarily playing a game, there has been a head fake as far as messaging. we have seen soft, as marches mentioned, they hit a seemingly new floor and then fall through that even further after the euphoria of the rhetoric coming from beijing. we will have to see if the story has legs and veracity. the wall street journal say regulators are finishing up

their stores into dd global as well as the online recruitment platform. all of them are lifted in the united states, all rally overnight and it was up as much as 65%. this is a battered stock. it has lost $70 billion, more than $70 billion since the ipo last summer. it's been on a regulatory watch from day one since defying regulators and listing in the united states on june 30 of last year. wall street journal is saying that all three companies, particularly didi expected to be faced with a significant find, as well as transferring upwards of 1% of the company to the state so the government can have a better say and how the companies are run. the big concern is data security, when they were lifted in the united states, data security means national security. this all leads to the potential

delisting in the united states, which is going to happen most likely, most likely shareholders already approve that because they see the best possible outcome is to come back to this part of the world, liston hong kong, and lead the troubles at this on the united states and the n.y.c. behind them. this is bloomberg. ♪ -- was see outlook? mark: obviously there are big central-bank meetings coming up. the ecb meeting is very significant, not just for what happens in europe, but for u.s. as well. the drivers of rising yield in the past few days have come off in the european side. but now we are also getting new information on the u.s. side, which is adding the pressure. we have larry summers saying that the cpi data in the united states, understated cpi, is probably more like 9%, not 7%. thus this new fuel for the

hawks. there certainly won't be more calls for 50 basis points all the way through to the end of the year. that would take 3% to 3.5%. that would be the neutral level they're looking for. there's no way they could relax even though they could see the economy slowdown. the inflation numbers way too high. you have cpi coming this week. you have the ecb and cpi, very big for yields. for the moment, there's no sign that they could do anything to stop the upwards move in that respect and you could see dollar-yen is responding in the japanese economy. it's still place for higher rates, u.s. is. any could see a playing out in the foreign exchange market with dollar-yen at 132. shery: bloomberg's and stephen engle. let's not forget, investors look at the possible rate hike from australia's central-bank with a

key debate centering on the size of the movie or let's ring in our global economics and policy editor kathleen. that hike seems to be a given by how much? kathleen: no matter what happens today, with what economists are saying, and the 6:00 hour, there will be more to come. do they start with 25, 40 or 50? economists are leaning towards the 25 basis point hike erie at one of the reasons is that it was low at the may meeting when they surprised everyone with the 25 basis point hike. most were thinking of a smaller one or bigger one, he said a 20 five basis point rate hike returns them to business as usual. and you can see this on the chart with the expectations are. they expect the 40 basis point, so a very close: the oversize are the normal size. but the rba we know from the last fed minutes, discussed the possibility of 40 basis hike at the may meeting.

first quarter cpi's at five point 1%. wages are rising nearly two by 5%. unemployment at a record low of 3.9%. at the numbers we got 24 hours ago on inflation, on the labor market in australia. because the melbourne institute inflation gauge jumped 4.8 percent year-over-year in may. that was a big celebration of 3.4% year-over-year. the job advertisements were up 0.4% and it was a big swing from when they fail. the job switching rate in australia is at 9.5% employed workers. people are confident enough they are changing jobs. again, when she spoke to us, it's a close call in could go either way. but the big reason for the rba to move on the more aggressive for your 50 rate hike the fact that the federal reserve is moving ahead and many are doing

the larger 50 basis point hike. listen to what she said. >> with labor central-bank stepping up the pace and delivering 50 point moves in signaling type moves ahead, that is a reflection of the global pressures trickling in. i think it's a combination of the global central bank with upward risk to inflation that would support a larger move of 40 basis points. kathleen: i love that phrase, dollar bloc cousins. we see these bigger hikes. the u.s. is also looking at, when it it be tough politically if the rba were to do the bigger move when the prime minister has just taken office. she seemed to dismiss that, but that's one more reason people say at least at this meeting, maybe they will say 25 basis points are enough.

that's why we will watch policy remarks, policy statements and a couple of days what they've done, why they've done and what they may do next. haidi: our global policy and economics editor kathleen hays there. let's take a look at some of the moves, particularly as we see the surge continuing across the commodities complex. >> to bloomberg commodities by index hitting an all-time record high in the previous session. just a week come on line alongside copper and brent crude adding to natural gas in the previous hour. we are seeing the moves here at negative, it did move 5% high in the previous session and it was concerned around supply constraint in high demand. haidi: let's get to vonnie quinn now with the first word headlines. vonnie: boris johnson has a challenge by rebels to remain leader of the governing concerning party.

the 211 to 148 votes exposed theresa may, who was ousted six months later. pressure has been building on johnson for weeks over party gate and downing street during the pandemic. singapore is advancing its leadership with the appointment of finance minister lawrence wong as the deputy prime minister. the 49-year-old becomes one of the prime minister's two deputies who will be acting in his absence. with the leader of his party's fourth generation of ministers in april, it remains unclear when it will happen. bloomberg has learned that india is eager to take on crude from russia. sources say state owned refiners are in talked for supply contacts for the crude. they would be on top of existing shipments to india from other deals with russia. many international buyers have turned from india since the invasion of ukraine.

cova clusters linked to schools and bars and hong kong and push case numbers to a six week high. some classes have been suspended but school closures have been avoided. despite this by, deaths are still low but it's raising concerns as the government may restrict -- go to restrictor curve with some having quarantine centers. global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. shery: still ahead, apple unveils a redesign of a new pay leader feature, bringing the tech giant further into the finance space. but up next, we are back live with singapore, where the chief sustainability officer talks about financing the move to global decarbonization. this is bloomberg. ♪

the annual sustainability event starts in singapore today. the company just pledged 3.6 billion dollars to launch jen's zero, it's committed to global decarbonization. that's crossover to the event or our chief chris correspondent haslinda ominous with our next guest. haslinda: hi to, it is all about meeting the 2050 target of next year. joining us now is the chief sustainability officer at to mastic international. good morning, good to have you with us. $3.6 billion committed to investments that would speed up decarbonization. what exactly are you looking for?

>> yesterday we launched it, which is a dedicated investment platform that focused on three areas. technology solutions can move carbon emissions, nature-based solutions for things like reforestation, regenerative agriculture and the carbon ecosystem we need to have a highly effective carbon market. those will be project developers, verification. really companies coming through with things like satellite technologies that you can monitor for carbon biomass and natural systems. so-and-so's three areas, and we've got a dedicated team that will be looking at how do we really drive up carbon ecosystems. >> are there enough projects? because my conversation with him early on talked about how it's difficult for capital to find good projects. >> the good thing is we see capital markets wake up on climate change. so net zero is the new normal. you would say amongst capital

markets, whether you're a private equity form or a bank, people are looking deeply into the capital. in a way it wasn't there two or three years ago, the scale. so the risk has been the rush of capital, but there's also this tremendous opportunity in terms of entrepreneurs that got businesses at an earlier stage in our maturing over the first wave. on the nature-based side, there's a fine amount of absorbed of capacity that has been underfunded for so long. so actually now it's a welcome thing that we can see. but we have a sort of dedicated platform because you want to be in the best company in the best project developers. haslinda: most of these projects are long-term projects, and hence, investors are looking for higher returns, giving the higher risk involved. is that a fair assessment? rex we don't look at short-term trends, we will look at megatrends.

sustainability and climate chain is a megatrend. we can debate do we get in at zero by 2045 or 2055. you can say is it still net zero and we radically decarbonizing economy. that means all new technology, all new investments after be zero carbon, breathtakingly clean. the businesses can do that. having an incredibly strong tailwind behind them. if you are looking at long-term value, this is the area where you want to focus. and actually, when the future looks no longer like the past, the past is a really poor indicator of returns. so how we actually praise risks and returns like looking at businesses that got a really well advance, we've got something that could do really good bio plastics. the carbon positive client and positive business, how would you assess risk around that? we need tools to do that.

haslinda: have you seen the sustainability efforts being put in the back burner, and given the energy crisis, not to mention rising prices pressuring the markets of all of these companies. >> i think rising energy prices have actually focus people's minds back on energy security and the long-term. looking up the sun and the wind and renewables. there is no peak sun, we've got 5 billion years of sun reserves. we are just on the first chilean lots of solar panels in the world. it took about 70 years, the next trillion watts comes in the next four years. an incredible chip -- an incredible pace of change in solar and renewables. i think we are seeing a doubling down around renewables, actually, with the energy crisis. i was consumed -- i was concerned there was an incredible effort around the

world. but even through the pandemic we saw climate change come clearly through. but we know if we don't act, climate change is like a pandemic that doesn't go away, it's worse and worse and the only way to stop that is to get to net zero emissions, so we know what we have to do. i would say capital markets have 2000 businesses of net zero targets around the world. an increasing number of countries, well over 100 countries have it planned. not all of them have been visions. they turn in a hard plans and targets, but they will over the next one to three years. haslinda: a lot of those ambitions have been targeted by greenwashing. how do you account that level of talk but not much action? particularly as we see greater and greater profitability over demand for fossil fuels? grocery of just seen with

electric vehicles over the last five years, they are now removing 1.5 million barrels of oil demand a day that we are seeing changes go both ways in that area, which is important to remember. on the greenwashing point, mostly it's miscommunication that's being done that -- that's being done there. we have seen greenwashing, esg washing, but it's mostly clumsy communication. really, i've seen in the c-suite that we talked to, many companies around the world, you've now got the leadership of companies wrestling with -- it's not why do we do this, do we need to do this, it's how do we do this and how do we mobilize capital. >> you talk about the globalization and you have to talk about the price and it ranges from $10 to 100. when will we get to a single pricing?

>> you would say, could there be some interchange between different carbon currencies around the world. i will think we get to a single carbon price for some time, if ever. ethic it's hard to predict if we will do that. what we need strong enough carbon signal. singapore and carbon tax in place. you can see the eu emission trading scheme took a long time for carbon prices. but then you look at the technology, the technology with independence is usually early-stage. crane still needs a cream carbon price. if you're going for energy, the cheapest energy is renewable energy. in most markets you don't need the carbon price. the carbon price is hugely valuable but not the only tool in the toolbox. >> steve howard there, the chief sustainable officer coming to you live in the lion city.

shery: haslinda almond with a busy day. we will speak to toyota about the transition to electric vehicles in asia. coming up to the time on your screen right there. twitter repeats that it will hold elon musk accountable for the $44 billion takeover with a battle over spam and bots. this is bloomberg. ♪ how will your business adapt to change? you could hire an office full of peyton mannings.

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shery: the social network responded to elon musk demand for information about spam and fake accounts, saying it will continue sharing information in line with their agreement, su keenan joins us with the latest on this. what do we know at this point about behind-the-scenes meetings

or talks? su: that it's a very different story than more than we hear publicly. according to two people close to the matter, elon musk and twitter have been meeting regularly and exchanging information. these sources tell him -- tell bloomberg the deal is proceeding. all this despite the fact that billionaire elon musk just demonstrated another highly public sign of what appears to be buyers remorse. the fcc filing on monday, twitter is breaching the agreement by not meeting the demands for more information about bots. a clear threat to end the deal that he claims to have sworn in his life's information. twitter has maintained it is abiding by his terms. tech analysts have speculated that he either got cold feet and was trying to walk away, or trying to negotiate a better deal. it could possibly be pretexts,

legally he cannot be able to get out of it and twitter has maintained its holding him to the $44 deal and according to our sources, they are talking regularly. haidi: isn't there a breakup fee if must wants to walk away? what are the exit options. su: either side would have to pay if they walk away, but walking away is not that easy because there is pacific performance clause and there were musk has to at least go forward with the deal so this could possibly end up in court. >> bloomberg su keenan there. we have more to come on "daybreak asia". this is bloomberg. ♪ another crazy day? of course—you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place.

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annabelle: this is daybreak asia. a check on markets. an hour away from the open of chinese equities in mainland china. we are taking a look at where we expect chinese tech stocks to go from here because a lot of enthusiasm over the apple with the report that the regulators could be wrapping up their investigation. plenty of analysts out there say that the work is over for the crackdown, but from the looks of the chart, perhaps it's going into a sustained rally break out. we take a look at this line here, that's the hang seng tech index. the golden dragon index in the nasdaq trapping -- tracking back in the.com era. what we are saying here is that stocks, nothing has fundamentally changed for these companies. since we haven't had any really substantial moves from the government, you can often say it did and a few months ago.

looking up the board for the rest of the region, we do continue to keep an eye on treasury yields, a little bit lower this morning, but still pressuring the end to a two decade low period again for the greenback, 135 is a in the stand. -- sand. the aussie and is at a six week high against the japanese yen. the aussie dollar meanwhile, fairly slight as we look ahead to the rba rate decision. strategist, economist at investors expecting their first back-to-back rate hike 12 years. >> we are also watching sterling, flat at the moment. u.k.'s prime minister has revived the confidence within his own party, raising questions over the certainty of his position. let's discuss the market reaction. we have our effects and rate strategy joining us now. a little bit of pressure for sterling right now, but barely any movement, gaining against the u.s. dollars. so what's happening with this reaction in the market? the markets -- >> the markets

are shrugging off low confidence. it could be down the line. but even if he was tested and beat it, it's very unlikely that the u.k. election would be called any time soon, given how the tories are falling in the perils. the next notches of 2024, markets are better likely one would be before them, therefore the markets could have a policy with katrina reserving bank of england. the next week we will see how hawkish they are. it's 50 basis point with a boe not expected for 25 basis points. it ends up being a bit more hawkish given the inflation was at 9%, which was the highest in years. haidi: you wouldn't blame investors to be more distracted by the huge economic challenges

by the political story. >> at the moment the current changes with the markets are focused on. with inflation so high, and even the brexit issue still lingering over northern ireland protocols, that still hasn't been developed. it's a question of how the politics are behind it. the politics, it's very unlikely in the markets are saying they will take politics out of it with economics. >> what about the options markets. any hints that we are getting from there? >> interesting saying that the dollar is trending at a tight range. it's at 125, 126 range. what's happening his wrist, which basically compares the sterlings downside compared to upside, the push of the

downside, that premium is getting higher and higher and higher. so the market has indicated that the buyers are a know at the moment. buyers are definitely towards downside at the near term. haidi: meanwhile, the yuan is on trade recession look for china's policy signals to guide the next move. they could find some positivity in the including -- including credit situation. the onshore market is proving more resilient. a monthly credit chair akers shows it as the ease to the lowest level yet last month. let's bring up our china credit editor in hong kong. across a number of asset classes -- classes, it seems like things are starting to turn a corner here. >> absolutely. i think this is in keeping really with the policymaking approach true seen over the past year. all of these countdowns have been an emphasis on to mustard

markets and trying to retain stability in the domestic market. incredibly particular, extraordinary resilience. really positive for the last two years, despite the really powerful crackdown on property that was in the actual bond market. something like a cp of offshore bonds, led by real estate developers. so we really are seeing the very pronounced divergence between the onshore and offshore markets. and i think we are getting to food as the worst policymakers are thinking about focusing their attention going forward. shery: offshore bond market is much smaller, and we have seen those defaults, so what can we expect on that front? >> we are still looking to really see borrowers returning

to that part of the markets actually be able to borrow. yields are still above 20%, borrowing costs essentially prohibited at the high. one seal came through, and it was sort of regarded as not perhaps the best test of real investor sentiment. so there really is the thing to continue watching. in the meantime, looking very closely out where the developers haven't yet defaulted are going to act on where the bonds are coming due. the onshore credit market now looks like an alternative. we have seen beijing moving to encourage bond sales in that part of the market. it has also introduced the credit risk. they haven't really been tested, but they are now having a really important signal, potentially as the higher-quality developers may be there by authorities and

regulators going forward. shery: china credit editor rebecca joining us from hong kong. let's get the vonnie quinn with the first word headlines. vonnie: sri lanka's president said he will send -- spend the remaining two years of his term despite months of protests calling for him to resign. they spoke to bloomberg in a rare individual -- and says he won't stand for reelection but cannot go as a failed president, his words. thousands of protesters have camped outside the president's office, blaming him for sri lanka's worst ever economic crisis. twitter says it will hold elon musk accountable with his propose 44 billion takeover offer after the billionaire again threatened to pull out of the deal over the issue of bonds. they believe twitter is reaching the agreement by not meeting his demands for more information. further widening, the gap

between white evaluation. canada's prime minister justin trudeau has confirmed and condemned china saying that is fighter jet buzzed canadian flights. china's actions are irresponsible and provocative. his comments come one week after canada's defense department said china's deaths were including the safety of pilots at risk by flying too close. turkish president everyone said his president will continue rate ups. they have kept the benchmark rate of 14%. the annual inflation accelerated past 73% as of may. bill your extended losses after his comments. the worst performer among emerging markets currency. global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. haidi: coming up next, apple has unveiled software futures on services and its worldwide

developer conference. we get the details just ahead. this is bloomberg. ♪

>> apple pay later lets you split the costs of an apple pay purchase into four equal payments spread over six weeks with zero interest and no fees

of any kind. an apple pay later is available everywhere apple pay is excepted , and absent online. haidi: there on the iphone maker's new pay later option. checking in on asian suppliers for apple to see if we see the reaction. we could see new developments on improvements, tweaks on the margins when it comes to customizations, as well as the m2 chip as well. take a look at samsung, seeing downside strength just trading for the korean heavyweight, we are seeing them out of that group. let's bring our next guest who has a strong rating on apple. with us now is ivan, the cio of financial partners. always great to have you on. a lot of the tweets have been quite subtle. to me, there doesn't seem to be big bang announcements. but certainly the painless announcement we are currently interested in. >> consumers expect the by now,

pay later multiple payment option available, and certainly, apple products are premium priced products, so anything that makes them more affordable to the consumer is positive. the event is always great, they always announce new features, including the one of the -- one of the biggest announcements as the success of this, greater processing power, apple has done very well with their own. and i think will continue to do so. however, there was disappointment that we didn't get in is anticipated. this is the next big thing in technology whether for consumers and entertainment and gaming or commercial uses for infield service, but i think apple needs

its next blockbuster product than they have been announced a new product since the apple watch that was announced in 2015. as much as i do like apple, i think stock is cheap with a lot of upside. they continue to build their ecosystem. they have over 2 billion ios devices in use. there's over a quarter of a billion potential upgrades to the iphone that continue the super cycle and especially to drive the 5g adoptions, but they need a new blockbuster product but there's hope, and i think we will see some kind of augmented reality headset that brings them into the metaverse. because the metaverse is the fastest-growing part of consumer electronics. quickset raises a risk of being left behind. as you point out, there are a

lot of competitors, meta, microsoft, sony. is there is since that time is of the essence or is this a situation where we see apple fans buying apple regardless of whether they are law in the market or not? >> two things of the capital, they have not been the first to market with the smartphone, but they dominated it. they did created as an overall market. the android installed user base is greater than the ios user base, but apple does have the brand equity in market. they've never been's first to market, but in most cases our best to market. i think when they finally bring it, it will be a great device with incredible functionality. it will fit well into the apple ecosystem and apple has a tremendous customer base that's willing to continue to buy apple products.

>> you sent us one after we're done. what will give us support in the coming months? >> the growth of services. i think we are in a major uplink for iphones. there are billion phones that need to be upgraded in the also grows their services revenue of which they continue to new things, apple fitness has expanded functionality into whether it was announced. a lot of small drivers, functionality in the iowa 16, a new tv os. a lot of new function that gets people to buy or upgrade their product or hardware or continue to expand the services they use on the services platform.

shery: how much of the supply chain disruptions has impacted more hardware development coming from apple? ivan: apple does to -- does tend to announce hardware available if something happens. they play into it, or this may just be the fact that they will build up to this announcement and have another event that specifically will focus on this. but i do believe it will come and i believe we will see an announcement for arb are from apple before the end of the year. shery: always good catching up with you. take a look at how asian markets are trading at the moment. we are see the nikkei unchanged

at the moment. we are seeing utilities and energy leading those gains, but we continue to see the index weighed down by real estate and technology stocks. we do have weakness against the u.s. dollar. we continue to be watching the asx 200 as we have the rba rate decision. it goes back to back rate hikes. we are seeing on most every sector and the read right now, industrial leading the declines in materials unchanged at the moment, kiwi stocks are down after coming back from the holiday. the kospi is down 1%. we are watching the korean won that weakens against the u.s. dollar, 1256 is the level. >> checking in on how futures are opening at the moment. we have not much of a reaction when it comes to the powers after we had the release of the boris johnson victory.

growth worries continue to weigh. look at your futures looking at 6/10 of a percent lower. msci europe is positive. we did see europe and equities rebounding and decline the optimism of chinese in covid-19 curves. quite a bit of risk on sentiment in the previous session as that loosens restrictions and beijing really increasing the economic act committee that will pick up, particularly given china is a big trading partner with europe. dax futures sitting softer and it's down about 3/10 of 1%. we are looking ahead for a pretty exciting ecb. area rates markets are bracing for that, and we asked that the ecb will be a plan this week due to try to ward off the potential for bond market threat as they are looking to finally make that beat move. coming up next, chinese stocks may be a major inflection point.

anticipation is building for a turnaround. we take a look ahead to the chinese markets opening in the next hour, next. this is bloomberg. ♪

haidi: a quick check of headlines. bloomberg says the sec is

investigating whether they broke security rules over the coin offering. we are told the regulators looking into whether it was a security fail that should have been registered. they face them in washington. that's the world's fifth biggest crypto. citigroup will hire more than 4000 tech staff to help move the institutional clients online. more than a thousand recruits will join the markets technology team. demand for data specialists and software engineers is intensifying banking and other industries, which they have other platforms to provide remote services to clients and workers. city global meta surgeon chinese shares on news that regulators could conclude their investigation into the ride-hailing company. the wall street journal reported that it will allow them to restore their main mobile abscesses this week. the report says that other tech firms are expected to face financial penalties. shery: we will see how the

broader chinese market will react all of this. as rain and asia stocks chinese editor. of course we have already support for chinese assets because of those lifting of restrictions at this chart on the bloomberg shows. could we really with the regulatory landscape see and inflection point for china? >> hey. this is the march 16 pledge. this is probably the most concrete piece of action in terms of lifting their crackdowns on the tech sector. and since then, there have been many status, and they all have continue to have crackdowns on the live streaming sector and there are news headlines about tech companies cutting staff. right now this wall street journal report saying the crackdown, which basically has sparked the whole year-long crackdown in the vortex sectors about to end this week, and two

other companies as you mention, is mentioned in the wall street journal report, but investors are taking as a very euphoric moment for the sector because valuations are so depressed, and overall, i think investors are sort of holding level on the sector is very low, so the upside is considered high, but of course, more follow-through on the positive news front would also be helpful for continue to rally. haidi: one of the other companies affected by the regulatory rulings when it comes to live streaming on the broader china stock slowdown has been billy billy. there is a report that said cutting jobs and gaining as well as livestream given the down side pressures, their earning fundamentals, performance fundamentals are tech for -- tough for china tech right now. >> yes, their earnings season just ended for the tech names,

quiet a few of them were reporting really disappointing earnings, including tencent. on the policy side, just because expectations were low, some managed to outperform alibaba and baidu. and if you look at the estimates for the hang seng tech index, the revisions are becoming more positive since the beginning of this month. just at the end of the earnings season, people are seeing positivity, but i think this kurt -- quarter, the current quarter will be tough. you mentioned they may be cutting staff, and the lockdowns are being eased. ethic a lot of people are thinking this quarter might be the worst quarter. haidi: we will be watching on the other side with the mainland open and just about half an hour's time. apple suppliers in view, including -- at we are looking at the iphone maker rebound. looking at the ipad, also that

service that votes its service into finance. the trillion dollar local credit market is also on watch and is proving to be more resilient in its offshore counterpart to the historic crackdown on the property sector in a record wave of defaults. in to that end we are watching the likes of developers including china. >> coming up, we have plenty more on china's probe reportedly coming to an end. we speak to msa capital about what that means for chinese tech. plus the portfolio manager says chinese markets seem to be finding a way up and they discussed the asia investment strategy just ahead. >> that's it for daybreak asia, markets coverage continues as we look ahead to the start of trade and hong kong, shanghai and shenzhen. standby for bloomberg markets china open. this is bloomberg. ♪