♪ haidi: welcome to "daybreak: australia." i am howdy stroud-watts in sydney. annabelle: i am annabelle droulers in hong kong. we are counting down to asia's market open. shery: from new york, i am shery ahn. the top stories this hour, markets betting that the fed is set to move more forcefully to stamp out inflation, with a bigger rate hike than previously anticipated. haidi: the selloff in u.s. stocks and bonds and testify as investors fear that the fed's approach may lead to inflation. shery: and hong kong's chief executive to bloomberg that a stronger vaccination drive could have prevented covid deaths. >> henry adopted more aggressive measures at the very beginning

and protected the elderly better, especially the elderly homes, then perhaps we would have seen a lower number of deaths. shery: u.s. futures are higher at the open of asian session, this after the s&p 500 saw a fifth consecutive session of losses. anxiety ahead of the fed's decision on wednesday. bear market markets traditionally take a longer time to rebound. we are in the fourth beer market in the last 20 years. in the last two, we had to wait 1000 days to recoup the losses. nasdaq did outperform. futures are higher, the likes of oracle and fedex. fedex seeing its best day since 1996, after boosting dividends. the 2-year yield continuing to gain ground. biggest three-day gain since 1987. may ppi numbers, also coming in stronger-than-expected, leading

to more concerns about fed tightening. crude prices rebounding a little bit in the asian session. in the new york session, though, a little bit of pressure on that $120 a barrel level as we are hearing that more legislation could be in the works for energy, the white house apparently thinking about an oil profit tax. we continue to see the plunge with bitcoin, now at the lowest level since december of 2020, headed towards that $20,000 level, this after more anxiety over perhaps risks in the ecosystem over all with lending platforms. celsius, now halting withdrawals. we also had coinbase saying they will cut 18% of their workforce. we are watching this crypto winter, it could be in the cards. annabelle: volatility is the name of the game here in asia as well. we are setting up for a week of starts. new zealand coming online, a bit on the downside.

a bear market for new zealand stocks, closing 20% lower from january 2021 peak. australian futures are also looking lower, the asx yesterday tumbled the most in more than two years. one analyst weighing in and saying that we can expect more market shocks set to continue. the yen, very much in focus as well because we are past the 135.1 nine mark, the first time in 24 years -- 135.19 mark, the first time in 24 years. that is the level that could force the boj to intervene and change the course of their policy direction. haidi: you can see the complete disintegration in sentiment and confidence. you talk about what we are seeing across equity markets or across-the-board markets, it is the fear of stagflation. take a look at this new survey from bfa, showing us that

stagflation fears have surged the highest since the 2008 financial crisis. global growth optimism meantime, has plunged to record lows. liberal growth expectations also dropping. -- global growth expectations also dropping. we are talking the likes of lehman brothers, the bursting of the dot-com bubble, not great events to be setting precedent in terms of the level of sentiment-dipping that we are seeing now especially. shery: as we continue to see. shery: real yields driving gains. this is important, we are seeing real borrowing costs that are affecting companies and households' borrowing. that level adjusted for inflation, soaring back to pre-pandemic levels causing damage to cryptocurrencies and also tech companies. not to mention the impact on some investors that have been buying those bonds on the

expedition that fed rate hikes been largely priced in. we will be watching their wednesday decision closely. let's cross our cross asset editor andrea papuc, and welcome our global economics and policy editor, kathleen hays. let's go through the markets. we saw tech stocks with a bit of a rebound today. andrea are that's right. -- i don't think we can read too much into that, there was the oracle effect from their up eight forecast which you mentioned before, but nobody really knows what is going to happen at the fed meeting tomorrow, much less how markets will react. but what we do know is that there is this entrenched fear of stagflation. that bank of america survey showing stagflation concerns at the highest since 2008. you also have large investors now dumping stocks with hedge funds basically selling at the

fastest pace on record, according to goldman sachs. so what we have is increased levels of volatility. investors are fearful, really just not knowing how to navigate going forward. jerome powell's prince conference to the is going to be crucial -- press conference tomorrow is going to be crucial. we are in for more pressure today in asia. as you mentioned, as long as real yields go up, pressure will continue on the equity markets. haidi: e have markets pricing in 75 basis points this week. more high-profile wall street names hopping on board. who are we hearing from, and what are they saying? kathleen: let's start with what is being said. within about 36 hours, the bond market has gone from pricing in

50, 50 in september to 275's in june and july, and then september, something that looks more like 50, 200 basis points in the next three minutes. it wasn't long ago that the whole year, the market was looking at maybe 200 basis points for the whole year. we know that inflation came up higher, 8.6 percent year-over-year in the latest cpi report for the u.s., but this is a very unwelcome surprise to the fed, and that is inflation expectations, because the new york fed survey shows that roads 6% year-over-year in march, a new record. the fed has said, we cannot let inflation expectations arise, and now they are. one former fed president, bill dudley speaking today, says that he sees a 75 basis point

rate hike. and one analyst, bill ackman, pershing square's investor, he is also on board with a more aggressive fed. they need to have more confidence because they let inflation get out of control. equity markets have lost confidence, and confidence can be restored with 75 basis tomorrow, and then in july, a commitment to do it again. he says, like bill dudley, that the 100-basis-point rate hike would be even better. people give it a slim chance. not ruling that out. haidi: so, where do we see treasury markets going from here? andreea: look, what we have seen in asia is some sort of stabilization after selloffs overnight. so it is going to be --

investors will be watching that really closely. if the markets start to price in 100 basis points, then you are probably going to see the selloff continue. but with everything right now, it is pretty much a guessing game. the only certainty is that there is a lot of volatility and uncertainty out there for investors. shery: and kathleen, given we are talking 75 or 100-basis-point rate hikes, if the fed comes out with 50, wouldn't they disappoint and lose credibility on that fraud question mark kathleen: i don't know. if they don't, markets are geared up for it. vince reinhardt, the head of the division of monetary affairs at the federal reserve order governors, he is now a chief economist, he said that powell had to work really hard to get a

divergent set of views to agree on that do 50-basis-point rate hikes. it seemed aggressive, didn't it? he said they had a plan. contrast that with stephen stanley. the last six months, he says the bond market shifted from fully confident that the fed could get inflation under control, to a full-blown, here on fire crisis view. he says they have to do something aggressive to start gaining credibility. a lot of people are saying, how, we don't have jay powell giving a speech somewhere and confirming 75, or turning off that view, or james bullard on the hawkish side, or mary daly on the dovish side? well, it is the fed's blackout period. 10 days before a meeting, they cannot speak publicly about anything that has to do with fed

or monetary policy or with your deliberations, it is against the fed's regulations. so the fact that they haven't spoken out, it doesn't mean they are not trying to push back. they can't. i want to make sure everybody understands because this is such a crucial moment for the federal reserve and the markets. haidi: kathleen always giving us that great context there, with bloomberg's andrea papuc as well. let's get to vonnie quinn in new york with the headlines. vonnie: good. oil saw it's really sharply reverse on signals that the democrats are considering a new energy legislation. the organist editor may propose a tax of 42% on companies that record a profit margin better than 10%. in the white house conference president biden hasn't ruled out the idea of taxing excessive oil company profits. >> we are not ruling that out of consideration. when we have an announcement, we will make that announcement. what the president has made

clear is that there is a real issue with the level of production by oil companies and the profits that they are making right now, after the russian invasion of ukraine. vonnie: china's security regulator issued guidelines unpaid to the nations brokers and wants to avoid what it calls excessive short-term incentives, and to prevent financial risks. however, the csrc denies setting limits on banker compensation. on monday, bloomberg reported that the regulator had asked global banks for details on how they paid their top staff. hong kong marginally taken its virus restrictions amid a raise in cases. residents will have to show a negative covid test within 24 hours of entering bars and nightclubs. 350 cases have been linked to clusters in the city's bars since they reopened recently. uncertainty is being raised about hong kong's virus strategy. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg.

haidi: hong kong's outgoing chief executive, carrie lam, say hotel quarantines have hurt the city's status as a financial hub. she also conceded that her government could have prevented more covid deaths with a stronger vaccination drive. in an interview with bloomberg's stephen engle, however, carrie lam refused to apologize. >> if you look at the past two years, before the first wave hit us for a period, hong kong was ranked the world's number one in terms of normalcy. that is when other countries and places were imposing the stay-at-home permits and lockdowns and closed the airport and so on. we were, by and large, operating normally. but since the fifth wave harris, and it hit us really hard in terms of the number of deaths -- >> we went from 1000 deaths to

9300. >> we were cautious. at sometime because of the transmissibility of omicron and the madness of this virus, other places were opening up. by comparison -- i am a person who believes in relativity, everything is relative. when people are opening up and hong kong is still imposing a seven-day hotel currently, that weakens our position as an international city. stephen: in hindsight, is there something you wish you had done better? the number of deaths went from 300-9300 -- >> vaccinations. looking back, if you asked me, had we adopted more aggressive measures at the very beginning and protected the elderly better, especially in the elderly homes, then perhaps we would have seen a lower number of deaths. shery: hong kong leader carrie lam with our chief north asia correspondent stephen engle. he will join us later this hour

for more on his discussion with her. also, nasa will hold its first commercial launch outside the u.s. for decades, and it has chosen australia. we will speak exclusively with the ceo of arianespace, the country's sole provider of commercial lunches. as we counter to the fed decision, wincrest capital says higher rates may cause demand destruction for discretionary items. we will discuss that next. this is bloomberg. ♪

shery: u.s. futures trading early seeing some upside. we are seeing a lot of anxiety out there given that we are headed towards a fed decision. markets pricing him 75 basis point rate hikes on wednesday. this would be the largest since 1994, also coming on a day when we saw the may ppi numbers. nasa 100 outperforming today with the likes -- nasdaq 100 outperforming today, with the likes of oracle and fedex outperforming. our next guest expects higher rates to cause demand destruction. with us now is barbara anna

bernard, from wincrest capital. what about the fact that some people have savings, especially during the pandemic, would that help upset the pressure on discretionary stocks? barbara: that is the popular narrative, but those savings are not equally distributed. a poll reported that 17% of households earning less than 40 thousand dollars a year are now concerned about not having enough money to pay their normal bills. when you talk about excess savings, they are skewed towards the more wealthy segments of society who are less impacted by five dollar gas and double-digit inflation on food items. shery: today we saw that tech names gaining ground. where do you see tech stocks going, especially when you have yields continue to surge? barbara ann: innovation, there

is always room for it, but these companies need to be profitable. profitless prosperity is done. you have over 600 companies in the u.s. that are zombies, which means there is not enough to. it only gets more expensive. to fund this that if you are a tech company and it is sustainable, that is fantastic, but there are a number of companies that benefited from an era of free money that is over, and i do not see them reinflating. shery: you say that given markets over very priced in 75, they should just go for it. haidi: should date just go for 100 and get it over and 10 with? barbara ann: i don't spend a lot of time thinking about this, but what i do know is that rates are going higher. the fed believes, rightly or wrongly, that raising rates is the way to get ahead of inflation. they are doing a good job of

demand destruction, i am not sure that raising rates will solve all the sources of inflation today. the trajectory is definitely up. how quickly they do it, do they front-end load it, i don't know, but certainty is better than uncertainty. that is what you saw in the markets. markets hate uncertainty. so the sooner they can be clear about how quickly they will raise rates, and what is an acceptable rate of inflation for them, the sooner markets will calm down. haidi: how much uncertainty do you have over the upcoming earnings season? we have seen increasingly investors demanding more, even if reasonable set of stock outperformance anymore. how much are we going to see the punishment play out in the next earnings season? barbara ann: unfortunately, that is why i am still really bearish

for markets. even though we have seen the s&p contract 8.4%, what you haven't yet seen is earnings estimates come down. for example, if you look for q3 and q4 of this year, earnings estimates arterial 10% of the s&p. and that is comping a + 37% and 28% q3 and q4 respectively. it is not going to happen. particularly in the retail sector, you just see analysts assuming this double-digit growth in perpetuity. i don't see it. this is the next leg to fall on the market. everyone a second bottom? recessions can take 20 months on average. the one-month recession during covid was the anomaly. markets normally bottom out at an 11.7x multiple, not an 18x multiple.

i increase still have room for compression. haidi: barbara ann bernard, wincrest capital chief investment officer. terminal subscribers can get more on this story at dayb . you can always customize settings so you get the news on the industries and assets that matter to you. this is bloomberg. ♪

shery: here is a quick check of the latest business flash headlines. coinbase is to lay of 18% of its workforce in another sign of the worsening downturn that reduced the crypto markets value. it followed other companies like gemini which both cut staff.

goldman sachs has been quoting rates the last four minutes, and plans to extend this in coming weeks. but clients will pay a premium in the form of an added spread to reflect that rates will move against goldman's position. credit suisse shares hitting a record after analysts said the bank was suffering from funding pressures. barclays analysts say raising more equity could help credit suisse soft and the impact of incoming funding headwinds. the swiss lenders has been hurt by the archegos scandal and a string of profit warnings. haidi: let's look at the day ahead for australia now. more than 2.6 million australians will find out how their pay package could change in just a couple of hours time. that is feeding into the wage growth outlook for the rba, where the governor vowed to do whatever is necessary to bring

inflation back down to its 2% to 3% target. australia's regulators have clanks to consider buy-now, pay-later plans when considering payment. we have an interview coming up with hong kong chief executive carrie lam. we have our interview with her next. this is bloomberg. ♪ psst. girl. you can do better. ok. wow. i'm right here.

and you can do better, too. at least with your big name wireless carrier. with xfinity mobile, you can get unlimited for $30 per month on the nation's most reliable 5g network. they can even save you hundreds a year on your wireless bill, over t-mobile, at&t and verizon. wow. i can do better. yes, you can. i can do better, too. break free from the big three and switch to xfinity mobile.

shery: we are a few hours away from a raft of economic releases from china including retail sales in may. the data show how the country continues to teeter on the brink of contraction as strict various controls keep hammering growth. and of course we have seen hong kong very much tied to china's covidi zero policy, despite chief executive carrie lam saying that the country would not tie covid restrictions. the city will now require bar and restaurant patrons to show a negative covid test results to getting starting thursday. with more, let's bring in over chief north asia correspondent, stephen engle in hong kong. how will this be enforced? stephen: that is the big

question. carrie lam has said that in the waning days of her administration which ends at the end of this month, she wouldn't necessarily tighten covid restrictions on society, she will leave that to the incoming chief executive john lee when he takes over on july 1. however, as i was doing the interview with her yesterday, lines crossed and that record antigen tests would be required for all bar and nightclub patrons within 24 hours of entry . they have to show a photo of the results and provide their name and the date and time that they took the test. cases have more than doubled since may, since restrictions, were relaxed including clusters from nightlife district, here in the central district. 752 new local cases were found on tuesday. travelers inbound accounted for 90 seven of those. so there are domestic cases on

the rise and that is a concern. police are said to be stepping up enforcement efforts to uncover noncompliance at those bars and nightclub establishments. meanwhile, on a broader and good picture, we talked to carrie lam and she reiterated her estimation that hong kong has to resume its status as an international financial hub. kerr teens, she says, have damaged that reputation. that being said, she is leaving the hard lifting to recover that repetition the incoming chief executive. here is part of my interview with carrie lam. >> despite some skepticism and cynicism about hong kong's future, i remain very optimistic and confident of hong kong's future. one of the reasons for my confidence and optimism is hong kong's unique strength on the one country, two systems.

hong kong's autonomy to conduct her external affairs particularly in the international arena. we have the autonomy to set up our own trade offices. we could enter into bilateral agreements on free trade, investment protection. so i do want to complete my term by reinstating the importance of hong kong's international connectivity and her status as an international city. stephen: is the damage already done? >> if you look for the past two years, before their fifth wave hit us, for a period, hong kong was ranked the world's number one in terms of normalcy. that is when other countries and places were imposing stay at and lockdowns and closed the airport and so on. we were, by and large, operating normally. but since the fifth wave hit us,

and it hit us very hard, particularly in terms of the number of deaths. stephen: we went from 300 deaths to 9300. >> we had to be extremely cautious. at the same time because of the transmissibility of omicron and the mildness of the virus, other places were opening up. so, by comparison, i am a person who believes in relativity. everything is relative. when everything is opening up and hong kong is still imposing a seven-day hotel quarantined, that weakens our position as an international city. but mind you, during my term, while the daily cases were still high on the 25th of march, this year, i already announced the gradual opening up. in terms of social distancing, it is a three-stage relaxation. in terms of hong kong, they

lifted the ban on the nine countries and then i reduced the designated quarantine period from 14 days to seven days and made other adjustments at the airport, facility including people to come back. prior to the first of april, and for almost two years, daily arrivals at our beautiful hong kong international airport was a few hundreds. now it is back to 3000 plus. i hope that gradually we are able to progress on this route of normalcy. haidi: hong kong chief executive, carrie lam speaking to stephen engle. you can catch more of that interview on bloomberg tv. our conversation will premiere july 1 at 5 p.m. in hong kong, seven p.m. in sydney. this is how we are shaping up when it comes to australian futures. what a horrible session in the

previous session as we saw was the markets playing catch up up, but looking to extend losses. the aussie dollar is kind of holding its ground more or less, but firmly below $.69. this as we continue to see that strength in the haven demand for u.s. dollar across asian currencies. . dollar is down and mild to lower start to trading here in asia. the nikkei is flat. we are watching dollar-yen, actually starting to see just a bit of strength trickling in. remember, we have been talking about these yen crosses, it suggests that despite the headline yen strength that we see, that perhaps it is actually a little bit more when it comes to haven demand playing on that theme of the stagflation and information risk we are talking about. these are the fears gripping markets.

consumers a pullback. let's bring in annabelle droulers for morning calls. what are? we hearing? annabelle: workplace is taking a look at high-frequency credit card data and it is showing that not only are we seeing a pullback in consumption at the lower end, we are also seeing it at the higher range as well. barclays is also pointing to weakness in the savings rate and also in the jobs market. barclays strategists are saying that the savings rate is well below the levels we saw pre-pandemic. and the bank says markets are yet to price this in. retail sales data is due on wednesday, and the bank is saying that markets will be disappointed by that. shery: another well-known investor is also expecting more pain for the markets through the end of the year. annabelle: that's right, we heard from him earlier, the ceo of avenue capital management. he said markets have further to drop, the issue being that investors are trying to figure out how inflation will go, how

higher it will go. and what the fed response will be. he says negative news is already priced in. as for recession risks -- >> everybody knows we are either getting into recession or it is going to be close to recession. i don't think there is a lot more negative news that is going to come out. the question really will be how long is the recession. is it three months, six months, a year? ultimately i think it is going to be pretty short. annabelle: just how much lower can we go? mark landry is also expecting a 10% drop in stocks. we are already in bear market territory for the s&p 500, the fourth such bear market in the past two decades. the question is how long it will take steps to recover. if you look at the chart here, after covid, it took three months to see a rebound.

but looking at the.com era, we were looking at more than 1000 days to clawback those losses. haidi: well, the reserve bank of asteria governor says he will do whatever necessary to bring inflation back down to the 2% to 3% target -- the reserve bank of australia governor. our guest joins us now to discuss bank's next move. we are just getting revised expectations for even more hawkish moves from the rba, 50 basis points again going into august and september, versus the prior 25 basis points from goldman. is this on the back of the warning that we could see inflation up to 7% by the end of the year? guest: good morning. first of all, it was a very rare interview, the governor does not do one-on-one interviews, so it was quite unusual for him to make that appearance. the signal from him was pretty

hawkish. he did not push back on market pricing, which is for 3.6 percent by december. he kept reiterating that it was important to bring inflation down, that was the message he gave. he expects inflation to in fact start coming down only from the first half of 2023. so, a lot of hawkish signal and concerns around information becoming a problem in australia. shery: so what is the consensus call right now economists, given everything governor lowe has said? swot fish we are yet to see what reaction from economists after yesterday's interview, but economists were turning towards the hawkish side and expecting a 50 basis point increase again in july. that would be the first time ever that the rba would do 50 basis points back to back.

so the situation is quite interesting from the economics perspective, how things are going, how quickly things are going and how concerned the reserve bank has become, signaling back-to-back rapid tightening this year. haiti: the household debt to income ratio in australia is about 186%. that's governor lowe have concerns about how consumers will be able to handle higher payments and cope with higher prices at the same time? swati: he was asked that question last night. and while he said that there might be some individuals who will have problems with their debt, the vast majority would be fine. he kept reiterating that the economy was really resilient, that households are resilient,

household savings are still pretty high and there is a room for households to run down those savings. the average australian is also two years ahead in their loan repayments -- so from that perspective, he seems comfortable, that there is truly an economic will be able to absorb the interest rate hikes. shery: bloomberg's swati pandey with the latest. coming up, australia's race to space. nasa is set to launch rockets from the country in june. we will speak exclusively with the arianespace ceo, stephane israel,. this is bloomberg. ♪

vonnie: i am vonnie quinn with the first word headlines. ppi for final demand increased to an .8% for energy from a year earlier. the latest data will add to expectations that the fed will keep raising interest rates aggressively. president biden will seek to fix ties with saudi arabia next

month. . the visit marks a reversal of his pledge to make the kingdom a pariah over its human rights record. is saudi tour will kept four days of tours in the region. he will meet the israeli prime minister naftali bennett, and palestinian authority president, mahmoud abbas. a member of the bloomberg news bureau in beijing was released on real in january. he was detained -- she was detained more than a year ago on suspicion of national security law violations. the embassy says her case remains under investigation pending her trial. bloomberg news has been unable to contact her, but our editor-in-chief john micklethwait says he is encouraged to learn that she is out on bail. western australia will retire allstate owned qualifier plants by 2030. $2.7 billion will be invested in new green power infrastructure, including wind generation and storage. it is the latest step in the

country's mission to curb emissions. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie. this is bloomberg. haidi: in just under two weeks, nasa will launch rockets from australia's northern territory. it is seen as a milestone in the creation of a sovereign space capability, prioritized the new government. to discuss these opportunities, we are joined by a firm that has been the sole launch provider for australia for over 20 years. arianespace's ceo stephane israel joins us now. great to have you with us. tell us about the opportunities and what collaboration there is with the government? stephane: we have had a great success story with australia. arianespace is a launch service provider. . we happen to have delivered for australia h satellites -- six satellites.

so, 100% share and 100% success. and we will launch up to 11. haidi: the thing about australia is that the geography is advantageous, right. there was a shift to french guinea at one point over the past decade. do you see a capability to move that back to australia? stephane: it is true that the european sector had started its journey in australia, because in the 1960's, from 1964 to 1970, it was done in australia, we made three tests. but it had not been a successful project and in the, 1970's we decided to go to french guinea. to come back to your question, it is not so easy to do cock-up abilities in australia, it is a very heavy industry, very heavy

facilities. but we are ready to partner with australia. there are dynamic startups when it comes to space in australia. we are ready for this kind of partnering. but it will not be easy to have arianespace in australia. shery: how does australia compare to some of your other customers? because, of course, you have customers in asia like indonesia, singapore, japan thailand and the like. what do you see in australia that could be unique, and what sort of partnership you want? stephane: australia has a very ambitious space program. there is a commercial operator, and again, we have launched all of their commercial satellites for 35 years, and we will launch their 11th. but they are -- they are also very ambitious governmental projects. there is a very important project which is about secure

telecommunications, before the end of this decade, and we will be in competition to launch this project. so definitely, there is a lot of ambition in australia, and with arianespace, we are ready to deliver to the country and with our partnership with local players. shery: when it comes to other companies, who are your biggest rivals, and what do you make of newcomers like spacex? stephane: we could speak about spacex for hours, but what is important today is arianespace and ariane. i was in the u.s. during the symposium in colorado springs, and we sold 18 rockets to amazon, one of the most powerful companies. spacex is spacex, but ariane has been around for 40 years. we deployed a great telescope on

christmas of 2021, the most ambitious telescope ever launched. we have done it with novel precision, which has doubled the life expectancy of the telescope. we are very proud of what we do, and today it is for australia. haidi: what about the geopolitical risk? there were concerns russia would pull out of the iss, concerns that operationally, there is an impact from sanctions on russia. is that a factor in your decision-making more now? stephane: for sure. space is about cooperation and also about geopolitics. we used to operate a launcher, but after the invasion of ukraine by russia, this cooperation has stopped for so yuz. ariane and its italian sister, but for sure, space is about

geopolitics, and we need all partners to cooperate as much as possible to have ambitious projects. there is the are amiss project from nasa to go up to the moon. europe and australia are part of it. so geopolitics is everywhere, for sure. haidi: just about every industry we can think of is being impacted by rising prices and inflation, higher borrowing costs and logistical supply chain issues. can you tell us how that has played out in your business? stephane: inflation is turning around our industry, for sure we have the risk of increasing costs. i would say that today inflation is here, and we will have to cope with that and to see how to master it in the best way possible. haidi: great to have you with us, stephane israel, arianespace ceo in sydney. let's take a look at the scenery when it comes to trading in a sovereign bonds in australia. look at that three year and the

10 year, the 10 year rising to over 4%, a fresh 8--year high. pressure continues to be extended when it comes to yields, not just in australia and new zealand, but also being set by the tour and we see in treasuries. the aussie also seeing a jump. we really see the extension of the fresh selloff overnight in u.s. bonds, shery. shery: and we will bloomberg radio as well. we'll hear more from fede's big newsmakers and get in-depth analysis from the daybreak team, not broadcasting live from our studio in hong kong. this in live on bloombergradio.com. plenty more ahead. stay with us.

>> a number of people now are very nervous and they are trying to figure out, should they get out? i don't think you have natural barriers, i think you have natural sellers today. and nobody knows what the bottom is for that. but i think you also have a bit of pain in the crypto space. shery: avenue capital management ceo marc lasry there. we continue to see the flight away from speculative assets,

with bitcoin now at the lowest since december of 2020. we continue to see the downside after coinbase said they would be laying off 18% of their staff, warning of another crypto winter. u.s. futures, rebounding slightly after the s&p 500 fell for a fifth consecutive session. nasdaq futures are up 0.3%. haidi: coming up in the next hour, we will be speaking to standard chartered. they say investors should be taking advantage of high yields with a multi-asset income strategy. that is ahead. daybreak: asia is next. this is bloomberg. ♪

millions have made the switch from the big three to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g network, with the carrier rated #1 in customer satisfaction. that's a whole lot of happy campers out there. and it's never too late to join them.

get unlimited data with 5g included for just $30 a line per month when you get 4 lines. vo: when times get dark, switch to xfinity mobile today. we can't see the help that's all around us. let 2-1-1 be your guiding light. for help with food, health care, and other resources. operator: 2-1-1, how can i help you? vo: call 211 or visit 211.org 2-1-1 get connected. get help.