shery: you're watching daybreak asia coming from new york, sydney and hong kong. anabelle: they're counting down to the market opens in seoul. haidi: the top stories this hour, asian stocks set for declines as turmoil in the banking sector as investors running for safety. treasury and the dollar rallying. financial regulators are pledging a backstop for credit suisse saying they will provide liquidity support if needed. other central banks in focus as traders bet on a dovish pivot to prevent harsher economic lending. -- landing. anabelle: what a few days it has been. just a week ago we were talking about rates from the fed needing to hit 6%, 7%. we're endowed of whether we will see a hike of 25 -- doubt of whether we will see a hike of 25 basis points. traders evenly split. it follows the credit suisse, three failed american lenders. we have australia coming online.

we'll get more as trading comes underway. very much focusing on what is happening in the bonds space as we get the recalibration. we are seeing traders building bets that we could see cuts from the fed of 100 basis points by the end of the year. being led by the more rate to sensitive front end of the curve, still the 10 year yield pulling back. the aussie dollar bit under pressure. it's a more risk sensitive currency. it it is the financials -- it is the financials we are watching. let's change on. we're singh a lot of moves back into the haven -- a seeing a lot of moves back into the haven. still around its highest in about a month. a lot of money coming back into the japanese yen. it has a bit -- it was a bit stronger, the best performer in the j 10 space. we talked so much about bitcoin, the d correlation is what we are starting to see with u.s. assets. the token up around when he percent.

-- 20%. shery: we have to keep an eye on the cryptocurrency trades. we have seen news flow around them. take a look at how u.s. futures are coming online. s&p futures up .1%. we're singh nasdaq futures gaining .4%. we've senomyx session with tech stocks gaining -- we have seen a mixed session with tech stocks gaining. the expectations would lead to fewer rate hikes, less tightening, not only from the federal reserve but from the ecb which is why we saw the huge moves in the global bond space. we are watching the 10 year yield because we are at january lows. the two-year, plummeting to the september lows. sing the record drop as well. oil prices in the oil -- is ingestion up -- in the asian session, up after macroeconomic

challenges, the lowest level since july. one point falling below $66 a barrel. we saw the s&p 500 bouncing off session lows, after swiss authorities said they were ready to provide liquidity back for credit suisse. this, as we continue to see the selloff in bank shares, aiming to boost confidence in the lender after the biggest shareholder, the saudi national bank said they are rolling out any extra -- ruling out any extra investment. >> absolutely not, for many reasons outside of the simplest reason which is regulatory and statuary. we own, 9.8% of the bank. if we go above 10%, all kinds of new rules kick in, whether it be by a regulator or the european regulator. we're not inclined to get into a new regulatory regime. shery: let's get more with the head of the u.s. finance team, sally bakewell. what do we know about the support from the swiss national bank?

sally: after a tough day, credit suisse saw people saw this talking about contagion and banks like bnp stopping talking credit stops. we saw that the snb, the swiss regular came out and said it would be ready to backstop liquidity for the bank if needed. it made a few points. it did not see direct contagion. as per liquidity capital ratios the bank was meeting those. it raises questions, whether the swiss are able to provide the kind of liquidity that credit suisse would need and whether this does have contagion effects for the board of european and banking system and beyond. haidi: the u.s. treasury has a reviewed exposure for banks. sally: that's right. we saw some of the big banks like j.p. morgan, bank of america and citigroup. they have been, over the past few months, reducing their

exposure to credit suisse. they have also seen, as you would expect, increased inquiries from u.s. regulators about this exposure. they're extremely worried about the u.s. banking system at the moment. we had the collapse of three banks in less than a week, silicon valley bank, signature bank, and silver gate, the crypto lender. there were extreme -- they are extreme high alert for signs of weakness. moody's also downgraded from stable to negative, citing these concerns and with deposit outflows these banks have seen. shery: bloomberg editor sally bakewell with the latest on credit suisse and the turmoil around the banking sector and growing concern about this fallout. it's fueling bets that the federal reserve may pause rate hikes and even start cutting. our global economics and policy editor, kathleen haynes joins us. how likely is this dovish pivot?

kathleen: as long as the banking crisis continues to reverberate and seem -- seem to have another explosion day after day, it is likely all the time, especially when you consider it may reverberate, not just with financial stability but with the economy. very quickly, traders compared the terminal rate this year, it may be up to 6%. initially today it was looking like they were betting on 4.9%. it looks like they are saying the terminal rates could be 4.7% and the fed will be doing rate cuts by the end of the year. all that green shows you how high rates will get. the final rate has come down from the peak around 6%. all the red, that shows how the rate cuts are going to add up by the end of the year. now, it is not just that, there is a saying, the fed has the move, it has to keep raising rates, if it's fighting inflation, until it breaks something. maybe the banks are breaking,

maybe these medium-sized banks that have these deposits they can deal with. one of the things that caught everyone's eye today following the u.s. economy was the empire state manufacturing survey put out by the new york federal reserve. it's a new york region. it went from -5.8 below zero, contraction, to -4.22. retail sales on the month, 0.4%. the producer prices, good news if you want the fed to slowdown hikes, it may stop, down 0.1%. down even more on the core. all adding up to the sense that when we get to the meeting next week it is not just about what happens by the end of the year, the fed is widely expected to do 25 basis points, 50 basis point hike seems off the table. do they pause? if nomura is right and they cut, but the tables have turned very quickly. haidi: the question when it comes to credit suisse, are the problems big enough, the

systemic risks, big enough? four potentially the ecb to change course even more? kathleen: in terms of outlook, the first question you posed no one can answer right now. when things get so unstable, you just cannot say for sure, even a central banks try to shore it up. i like the way bloomberg economics puts it for credit suisse, they say is it too big to fail. it is certainly too big to ignore. now, the bet is that they will hike the key rate, but they will only do 25 basis points. and the other side of that coin is well, they've got high inflation still, are they going to lose their inflation fighting credibility. the german inflation number out today, year-over-year, 9.3%. that was supposed to be down to about 9.2%. that's moving in the wrong direction. i want to share something, a member of the board of the european central bank gave an interview to a german newspaper,

what he said was in fact, they should slow down because the financial tightening, as it's tightening, it will offset some of the rate hike they have done. he is harkening on history. he said the ecb should have avoided repeating the 2011 mistake when, a continued hiking rate without taking into account the growing contagion from the debt restructuring, he says this crisis led to a policy reversal after a few months. he is pointing out this is something that can build on itself. the prudent thing is a do not make the same mistake the ecb made back then. slow down the rate hikes, see what happens and go from there. haidi: bloomberg's global economics and policy editor, kathleen hays. volatility is gripping global markets as it lurches from one crisis to the other. let's bring in our strategist, mark canfield. to kathleen's point, just

before, we are in a situation where it is not possible to predict what happens in the days or weeks or months to come. so, is there a way to navigate these volatilities? do you think it gets a bit worse? mark: at the moment, most traders would just want to be in defensive mode. even if as an individual you may feel confident about one thing or the other your risk manager is telling you that it' times, or not you have a strong conviction on anything, on equities, financial institutions will tell traders to get closer and reduce risks. sell something that is on the edge of your portfolio. that is exaggerating all the moves in financial markets. people are moving into the most offensive places like u.s. treasuries. the u.s. dollars catching a bid.

gold is strong. despite the fact that it is not a major asset these days, as much as that has been in the past. what you are seeing is people, bending down their hedges and trying to do as little as possible while the market looks so uncertain. in an environment like that, you could have moves that go a lot further than usual. look at the two year treasury yield, it has dropped well over a hundred basis points in a week. that's and example of where people are going. every headline will make people nervous and make them more willing to make defensive measures. he is adding to the problem, not just the central bank meetings, the ecb and the fed coming up. we are coming to the end of the quarter. especially, very important for japanese institutions. people will be even more aware of what their portfolios look like at the end of march. shery: will asia go with the

rest of the markets in europe -- where the rest of the markets in europe and the u.s. are going? for can they trade separately? china is the least correlated to global markets right now. mark: when you have sentiment running as negatively as it is, there's going to be -- it is going to be hard for asia to ignore that. you may look at valuations and say asia looks cheap compared to the rest of the world. you may say that banking systems in asia, why should it be -- why should there be concerns about the american system? in the short-term none of that matters. what matters is the momentum and the skittishness in financial markets. it would be surprising if asian markets can outperform. they may be able to but in the sense that they fall less and -- than other parts of the world. in order for them to rally, that will be difficult for them. haidi: bloomberg strategist mark

cranfield. let's take a look at the australian banks online for 10 minutes. also in this trading session. we're expecting the sympathy swoon given all the concerns over credit suisse and how that could further fuel volatilities and volume trading in asian session. the downside when it comes to the big lenders, held by anz bank. the broader pack my just 1.5%. jeffries saying it prefers commonwealth bank out of the big four lenders, given the franchise. we expect to see asian financial stocks to move broadly in focused on credit suisse's record plunge, after the saudi national bank said it will not provide further capital injections. you can turn to bloomberg for more of this. tliv . let's get you to su keenan in

new york. su: we start with senate majority leader chuck schumer who wants bipartisan bills to address the collapse of silicon valley and signature bank's. the push for what he calls a strong legislation stopped short of rolling back a 2018 banking deregulation law. the trump era change raise the threshold of which banks were subjected to stress test. live there with warren -- elizabeth warren has a bill that can repeal it. lloyd austin has spoken by phone to his russian counterpart about the crash of the u.s. spy joan after an encounter with russian warplanes. austin called the actions unprofessional, but says that is key to keep communication lines opens. -- open. the u.s. has reportedly told of the chinese owners of tiktok that they must sell their stakes or face a man. the wall street journal says the command came from the committee

of foreign investment. tiktok is going under security review in the u.s. as lawmakers assess whether it's user data could be passed on to the chinese government. tiktok has over 100 million users in the u.s.. 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 around the world. i'm su keenan. this is bloomberg. shery: later in the show are exclusive conversation with the ceo of samsonite, his views of china's reopening and more. here firetrail investments despite the widening banking crisis. this is bloomberg. ♪

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>> it should be contained but i think just like the fed was, the ecb has to of knowledge that they have a ring -- have to ring fence things and put enough firewalls in place. but more importantly to ensure that there is no chance of this attracting the attention of other banks and people pushing on that. >> the problem is that credit suisse by some standards may be too big to fail and too big to be saved. >> this stock has been in a huge downfall for two years. there are clearly problems within this particular institution that predated what happened with svb. >> the great financial crisis, there was a lot of this that was about cross counterparty credit risk. that is not what this is about. >> i think this is the tip of the iceberg.

i think there is a lot more consolidation, a lot more pain yet to come. haidi: some voices on bloomberg tv weighing in on the credit suisse turmoil. joining us, another voice, anthony doyle, head of investment strategy at firetrail investments. is this another example that we are likely to see more instances of firms, banks that are struggling to have shifted into this new rate regime? anthony: investors are on heightened levels of awareness given the svb collapse and obviously credit suisse come a much larger institution. it highlights the impacts of monetary policy tightening. in a world where the cost of capital is much higher, there will be -- in terms of the financial sector where the strong will likely get stronger and the week will suffer. it will really depend upon how

robust those balance sheets are. haidi: with the dislocations were you finding opportunities? we've had brave souls try to trade the banks with not a great deal of success. if you take a look at the previous session. australian banks are down about 2%. we know that their capital positions are quite different. >> absolutely. there are opportunities in the current turmoil. with the market price action we are seeing, it highlights the different risk tolerances that investors have, but also different time horizons that investors have as well. so, there's a lot of algorithmic trading and leverage in the system. that is being washed out, showing lots of opportunities for us as fundamental investors. for us, we don't have exposure to u.s. banks, but we do have industrials. we like more defensive styles of companies, like hedge manufacturer carriers. we think the replacement cycle

and upgrade cycle will come strongly. we're seeing eps growth for the company as well. shery: are tech stocks defensive given the likelihood that we might not see as aggressive tightening as we thought before? anthony: from our perspective, the tech sector, there will be clear winners and losers. those cashed in, the capstone names, may find the environment beneficial. we expect m&a activity to pick up. microsoft, for example, we expect they may go on a buying spree now. they are flushed with cash. those tech firms that are unprofitable in a higher cost of capital world, they may find it difficult to raise capital via debt or equity. we may find them go to some of those, textile names. the best of the lot is microsoft. inevitably, we will find consolidation within the tech

sector, potentially some bargains for larger corporate. shery: when it comes to bargains we have heard a lot that china was looking pretty good on valuations. could that be a market that is shielded from the global chaos right now? anthony: yeah. the reopening trade is arguably one of the most consensus trades we have seen for 2023. the market has moved quickly. certainly, over a longer-term time period. it looks like earnings will grow there. allocation that china may make sense for some investors. for us, we have no direct exposure. we have exposure indirectly, via higher commodity prices. an example there, exposure to the copper price. haidi: what are your top picks at the moment, if you're talking about idiosyncratic growth stories or hedging stories? anthony: it is an environment where you have to be active. it is not about taking a beater

to the index. there are companies that will find the environment difficult. their share prices will suffer accordingly. one more defensive style name we like in our portfolio today is new york stock exchange, a timber rate. we still see a large demand for housing in the u.s.. we expect the market to tighten up quickly, even in a higher interest rate world. the great thing about weyerhaeuser, they are developing their climate business solution. they have a regulatory tile when, but we expect -- tailwind but we expect going demand. the other area, in terms of insurance, building a bit of inflation protection, one company we like in terms of the insurers is chubb. the wholesale broker that specializes in excess and surplus insurance in a world that is growing more complex, there's hard to ensure risk, ryan is leveraged into the

circular theme. haidi: always great to have you. anthony doyle, head of investments at firetrail investments. subscribers can get dayb . it's available on the bloomberg app. you can just get news on the industries and assets that matter to you. this is bloomberg. ♪

shery:shery: there is a quick check of the latest business flash headlines. virgin orbit is halting its operations, and firing nearly all staff -- furloughing nearly all staff due to funding issue. earlier this year, its first launched out of the u.k. failed to reach orbit in a mishap blamed on a faulty fuel filter. new zealand's company fonterra

had a capital return of its sale in chile. as cities full-year earnings -- it sees full year earnings with net income rising 50% from a year earlier to $340 million. fonterra has faced a decline in the price of its core product, home a powder. demand for other products has. . driven strong earnings samsung's full income beat -- samsonite beat full income earnings. kyle gendreau joins us next. this is bloomberg. ♪ hi, i'm katie, i've lost 110 pounds on golo in just over a year. golo is different than other programs i had been on because i was specifically looking for something that helped with insulin resistance. i had had conversations with my physician indicating that that was probably an issue that i was facing and making it more difficult for me to sustain weight loss.

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>> the problem is credit suisse by some standards may be too big to fail, but also too big to be

saved. it's not clear, that unlike the u.s., the federal system is enough resources to engineer a bailout. what they need is more capital. the question is whether it's capital are not. otherwise bad things can happen. haidi: that was the associate chairman and ceo. taking a look at the magnitude of the moves we are seeing around credit suisse. anabelle: this one is taking a look at short-term bonds. the line in blue is the frank bond. the one in white is the dollar bond. you can see the huge selloff down as much as $.40 on the dollar. it levels, signaling financial stress. credit suisse has $44 billion of debt maturing over the course of this year. we also saw that playing out similarly in the stocks as well. here was the drop we saw back in early february. we got the warning that the bank was going to be seeing a substantial loss over the coming

few months. then, the second plunge in the saudi national bank -- and of the saudi national bank said it will not reason stake -- and the saudi national bank said it will not raise its stake. given the backstop that came through from regulators in switzerland, but still we are around record lows for the shares. it's also playing out when you change on now and take a look at the cost for ensuring against the risk of default in the near term. this shows the credit defaults swap curve on march 15. a few days earlier on march 10, what the downward sloping curve tells he is -- tells us is the cost of hedging against a default have risen substantially, given the risk of default rising in the near term. that plays out in financial stocks globally. if you change now, take a look at the aussie session. 30 minutes into trading for the asx 200. it's the focus on the financials leading the drop, the broader

index you can see they are down more than 2.2%. haidi: let's get some more from bloomberg's chief correspondent for asia. garfield reynolds. you've been bouncing around, energized by the news flow. what are -- where do we go from here? >> a very open question. the most immediate interesting point is what does the ecb do later on today? a week ago they thought it was going to be 50 basis points. even a couple of days ago that was probably on the table as a potential scenario. now, they are expected to to just go 25. you cannot rule out that they have halted. what has happened, we had svb, and then credit suisse is much bigger when it comes to the global scene, and for europe. you've got funding strains

across the globe of the financial system, at a time when those are breaking out. do you want, as a central bank, to be adding stress to the financial system? the financial system, you talk about rates being a blunt tool, the nail that gets hit is the banking system. when the banking system is showing signs of being brittle, do you want to hit the nail again? that is the question. [laughter] shery: it is a very difficult situation for central bankers, isn't it? are we expecting asian central banks to reconsider if this continues? garfield: i would reconcile. all of this is coming with some further signs that that there is weakness across various parts of the global economy. the small nation is a long ways away from a long -- a long ways away but new zealand came up

with the strong contraction. that follows with australia reporting weaker than expected gdp the -- though that was not a contraction. economies are showing signs of rolling over anyway. now we have the strains breaking out along the two sides of the atlantic. you also have come as part of that, we talked about funding strains, what is one of the big areas where funding strains show up? it's in the capacity to readily get a hold of u.s. dollars. basic swap for the yen, dropped to levels last seen around the end of september, the beginning of october. that was when the japanese yen was 150 and everyone was wondering when the central government would intervene to stop the drop. if you have got those sort of u.s. dollar strains, that plays into what the central banks around asia will do. asian banks will be more exposed

to the channel of u.s. dollar funding strategies -- strains. everybody in this region feels it hard. haidi: garfield reynolds. let's get you to new york. su: switzerland's central bank and financial regulators say that credit suisse will receive a liquidity backstop if needed. the announcement show support at for storing confidence for the -- restore confidence for the lender. the central bank also discussed announcing more structural remedies, including a separation of the swiss unit and a tie up with larger swiss arrival, ubs -- rival ubs. argentina's central bank is considering easing its benchmark rate for the first time since september after prices increased by more than 100% annually last month. the key rate has remained at 75%. the monetary authority has not decided on the size of the hike,

if they go ahead with it. 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 around the world. i'm su keenan. this is bloomberg. shery: samsonite, one of the world's largest luggage company -- companies reported estimates that -- reported that beat estimates. surging from the prior year. joining us to discuss his results and business prospects in asia is kyle gendreau, always great to have you with us. those are really strong numbers, do you see the growth continuing into this year as well? kyle: sure. inks for having me. we've had a terrific and of last year. as we step into this year, tremendously strong results. our year-to-date february numbers are up 16.5% which is strong, that is with china starting to move but accelerating.

as we get into the end of q1 and q2 i expect china to continue to build. our core markets are continuing to deliver everywhere we look, strong travel numbers. shery: for china, when do expect the full travel recovery to happen? kyle: i think, as we get to the end of q2 and into q3, we will see it. we're seemed domestic travel in china -- a seeing domestic travel in china, back to recent levels in recent months. international travel has a lot to go through still. every week china's releasing countries that people can travel to. every week we are seeing positive news on that front. by the time we get to the end of q2, international travel will show promise for china as well. haidi: how are you weighing the prospects of recessionary conditions around major economies? how do you expect that the impact? what has been a fairly resilient consumer? kyle: i think they're such pent-up demand for travel and

consumers are making decisions on how they deploy their dollars. for sure, travel has been a winner this past year. our numbers, every quarter have been improving, to the point that we are ahead of 2019 levels. we're not seen slowdown in demand. the summer travel season will be strong. recessionary and inflationary pressures are here, but as consumers way decisions, travel will be one that they support. shery: given the strength that you continue to cite, do you consider raising prices? kyle: i think we are done with that. we needed to raise prices through the plandemic, as there were ash pandemic as there were inflationary pressures. -- pandemic as there were inflationary pressures. i think for us, pricing is in the right place. we were constantly creating new products in what we were selling today. 40% of that is new and would be

engineered for what we are seeing in the marketplace from a price positioning perspective. it's point to be a demand driven story, pricing will not be the story for us at all this year. haidi: does that include input pricing as well? it seems to suggest the inflationary pressures have eased. kyle: as always, there is always pockets of pressure. we are seeing much of that behind us. the strength of the dollar is a benefit for us, when it comes to sourcing. that is helping maintain margins. our gross margin story is tremendous, we put it to historic levels. as our asian business catches up to the recovery, that will help our overall margin profile step up. asia runs out of higher profile because of the mix of channels we operate. our gross margins will move up in this coming year despite the inflationary pressures. we manage that well over the

last 18 months. haidi: how busy is the production side at the moment? kyle: we got a jump on it. we started to move in the middle of last year, to move inventory levels to where we want them. we have come out of 2022 at the exact inventory position. we are continuing to bring in as volumes grow. we has set a target ahead of our own expectations, which, was exactly the right thing to do as we over perform on travel. we're in a terrific spot. i was in thailand visiting factories last weekend, they are busy. we keep giving them orders and they are keeping up. they are properly staffed and ready to go. we're excited. it's one of our advantages, the ability to leverage our balance sheet to put our sourcing and inventory at the same place across the world. haidi: always great to chat with you. kyle gendreau, ceo at samsonite

to national. still ahead, the chinese internet giant baidu is unveiling its ernie bot. we are looking at this new contender in the ai. race. . this is bloomberg. ♪

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haidi: the chinese search giant baidu is about to unveil the ernie bot. stephen engle us from hong kong. what do we know about ernie? stephen: it is going to be unveiled to china and the world later today. robin lee the head of baidu will be there to unveil this. we know about open a eyes -- ai's chatgpt came into the world with great fanfare. others have already unveiled themselves as well. to similar fanfare but also to less success. googles bard, do not do well. it underwhelmed. if you are going to come out with what is supposed to be a revolutionary change in the tech landscape, you better not underwhelmed. you better have not have --

better not have search errors. ernie bot is kind of scaled-back. it's not going to be groundbreaking in the many ways. there are challenges to the ai search in china. there are data privacy issues, censorship, the chip restrictions going forward. lots of challenges. baidu is not necessarily going to overwhelm the market today, when it unveils it. some analysts, like those from a cory, say it could be a key catalyst growing forward -- going forward it. the fact that they scaled-back the rollout is a good thing. they don't want to have errors and underwhelmed the market. -- underwhelm the market. a venture capitalist from the asia-pacific, formally from

google, i spoke to him last week about the ernie bot. he said chatgpt is far superior. it has far more data input, the learning is more advanced, but he says chinese entrance like ernie and others that will come down the pipe will have the ability to catch up very soon. here is my exclusive interview. >> we are really facing a true ai revolution. everything we have seen until recently has been nothing. because ai has undergone a huge change. recently we saw in a number of technologies including, but not just chatgpt, but others, the capabilities to think universally, beyond one application, one language, able to think broadly, getting a lot closer to human intelligence. we're facing both the most intelligent ai ever and the most powerful platform ever.

this will be much larger than the mobile revolution. we're very excited. stephen: do you have optimism that the do sides, if you are -- two sides, if you're talking about the u.s. and china being the leaders of ai development, there is room for improvement, but do you think there is scope for the two governments to find a way to have the collaboration, where we can have the same commercial benefits? >> i think both sides have their advantages. today, the u.s. is clearly ahead in the ai 2.0 technology. don't forget about seven years ago. the u.s. was way ahead in ai 1.0. china is not as breakthrough innovatively. but it catches up quickly. stephen: can you quantify how much these potential export controls on the advanced chips as well as making equipment that has spread beyond the u.s. to the likes of asml, tokyo and japan, how much this will set this evolution back -- in china

back? >> most of ai does not require the super high-end h 100, there are two workloads in ai. one is training and inference. inference is running on your phone or the server on your phone. china has plenty of chip suppliers, including chinese chips. for training, which is taking trillions of pages of data and very quickly training these really smart models, usually we would prefer to have the highest and chips. currently, china has existing supply that it is using. it is going to have trouble buying more. there are many possible alternatives in the future. in the meantime there a bit of a shortage. but, but -- but the existing substitutes and future substitutes will make it a non-ideal situation for chinese

companies who want to do massive training. it's also not a desperate situation by any means. stephen: what kind of impact do you expect from china's version of a chatgpt? >> there will be multiple chinese chatgpt's. baidu is the front runner. there will be other chinese companies that will build a similar technologies and a few startups. i have tried a few of these, so-called chinese chatgpt's. they are not as good as chatgpt. certainly you cannot compare their chinese quality with the chatgpt english quality. this english chatgpt, was trained on so much more high quality english data. to fix the chinese chatgpt the companies will need to get larger amount of chinese data. that will take may be a year for that to happen. the technologies i would have to say, are was quite impressed -- i was quite impressed by a few

companies technologies that have tried. haidi: kai-fu lee speaking with stephen engle. we have breaking news, u.s. lender under pressure. first republic bank is weighing options including a sale. this is a san francisco-based lender. there was a jump on fitch ratings leading to a 21% drop in its stock price. other smaller banks and regional lenders also following suit. first republic is also weighing options for shoring up liquidity, other strategic options including a sale, according to people familiar with it. all requested on an committee -- to be anonymous. first republic will remain to be independent. the issued a statement thing they had more than 70 billion in unused liquidity to fund operations from deals including the federal reserve and j.p. morgan chase. we did see the big plunge in the stock on wednesday, to a decade

low, giving it a market value of 5.8%. all of this coming on the back of the big route 2 we saw in european and u.s. banking stocks after quoted swiss plunged. we saw -- after credit suisse plunged. we're now hearing that first republic bank weighing options including a potential sale. shery: we are also getting breaking news out of japan. exports a 6.5% for the month of february -- jumping 6.5% for the month of february. it is still a big jump from the previous month. imports jumping 8.3%, below expectations. a much smaller jump than the previous month. still, the trade deficit has narrowed, as expected, and by much more than expected. we are talking -- talking about the trade deficit coming in at ¥89.7 billion.

the previous month, the trade deficit had topped ¥3 trillion. that was because we had seen chip making equipment exports lagging. this time around of the trade deficit narrowed. exports from china seem to have rebounded. we are talking about a contraction, but of a much lesser degree of 11% year on year to china. the exports to the u.s. rising 15%. we are seeing the january machine orders coming in, the growth month-to-month, of a 5%. a much bigger jump than one -- what's economist expected. when it comes to the your on your number, it is a growth of -- a year on your number, it is a growth of 4.5%. corporate plans for new order seem to be pretty strong for japan. haidi: in the midst of all of this we have some geopolitical tensions, we are getting details from nhk saying the north korean

missile that was launched earlier today was likely an icbm . north korea firing the ballistic missile that may have flown for at least an hour, indicating the test of a longer-range rocket before a planned a trip by the south korean president to japan. the last time was on north korea testing the icbm was to the u.s. mainland last month, designed to carry a warhead, that flew for 66 minutes. we're hearing the one launched earlier today was likely an icbm. more to come. this is bloomberg. ♪

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with a partner that always puts you first. start for free at godaddy.com haidi: take a look at the price action across australian bonds. take a look at this chart on your terminal. the upon rally amid the rush to safe havens, the steepest weekly plunge in 12 years. we are on track, given this huge flood haven demand. the three year yield is down 22 basis points, a total of 47 basis points, this week alone. we are seeing global bond markets being rocked by the to-and-fro when it comes to the risk of systemic contagion with a bank failure and bank crisis following bank crisis. shery: not surprising those are

some of the stocks we will be watching at the open of korea and japan. japanese financials, after the credit suisse crisis, we have seen them pressured after the collapse of svb and other u.s. lenders. we'll be watching mining stocks. we had big moves in the middle space, gold soaring, copper dropping, as a rush to haven assets continues. asian energy shares could move. oil hit a 15 month low. in the asian session it remains a bit supportive. the market opens in seoul and tokyo, next. this is bloomberg. ♪ it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management.

>> this is daybreak: asia.

we are counting down to asia's major market opens. we continue to see the fallout of the ongoing banking turmoil in the asian session as well. as we continue to watch the following comes to asian banking stocks for the credit squeeze pressure, even as the central bank is coming in and pledge the backs off if liquidity is donated. we have to question whether we are starting to see how the dominoes start to fall at least if -- if not at least be seriously jittery. >> this could be the tip of the iceberg. we do have the open of japan, south korea and the start of trading for treasuries. we are still seeing that retracement. the two year yield starting here

at the start of trading. it is down to expectations around the fed. we have three collapsed u.s. theaters. possibly another one here as well. traders split evenly roughly on whether that will go ahead at all. and we are seeing that's building up from 100 basis points. we are seeing that retreat back into that yen, financials very much in focus. we also have japan thanks, they are in focus. you can see the topics bank index there. let's look at the state of play for what we have for career. we are under pressure here. we way for that to get to trading underway.

that is showing the last here. we are seeing that in the korean won. it is oversensitive currency and then you have to add geopolitical tensions in focus as well. we have north korea firing a suspected ballistic missile. it does come ahead of the south korean president trip to japan. they were reporting that missile is likely an icbm. blushing as that plays out. australian trading likewise has the asx 200 in one hour into the session now. the focus coming down to those bank stocks. we are seeing those down more than 2%. the u.s. market those moves we are seeing in aussie bond yields. there was a red sensitive front end of the curve. brent crude coming online. very much in focus.

it was sitting around a three month low. it comes down to some the concerns building here around that recession backdrop. because i want to get some more from our next guest as well. she says the financial stability risk is in the eye of the beholder. with us is the head of global microstrategy. it is very interesting your take on this. the question is is the big risk of financial instability coming from systemic risk? the banking sector or a misstep when it comes to taking the petal of the inflation fight? >> great to be back with you. let's start off with how we view the svb drama itself. we don't see the rest, especially given the quick response from u.s. authorities. there needs -- there now appears

to be a defective deposit. the trouble does not seem to be shared among the larger banks in the united states. the business model was unique. the first is that the liability side so is deposit growth some four times greater than appears. the svp benefited from these sectors. mainly tech. there were some serious miscalculations going on with regards to the risk management. if you look at the broad market indicators of systemic stress, that also supports our view. we are taking a rather sanguine view as to what it means for the federal reserve next week. macro prudential tools are used for financial stability, monetary policy tools.

this is used for the inflation flight. -- inflation fight. 25 basis points does seem to be the way to go next week. crags yes. it feels like it is a bit too soon given how fast-moving this market is to try to determine that. you talk about being white sanguine in the face of -- in the branch of risks. does that mean you're being more opportunistic? chrysler stink white nibble in this environment. high,? surround peak in the fed. it was not that long ago that the terminal rate was 5.7, the middle of last week. now we are looking at something with 4.6 by september. while volatility springs here. it suggests a much more active management approach and

defensive qualities are still our bias. cross given the rush to safe havens, what happens if we have a stronger dollar for longer than expected? especially among asian markets. collectivist to the u.s. dollar, even prior to the drama was to the upside. we had identified two areas they really needed to change to shift that dynamic. the first was we needed to see growth differentials away from the u.s. favor. neither of those dynamics were manifest. now, of course, you have the global rush to safe havens. that benefits the u.s. dollar greatly. a rather important detail is that it only applies to u.s. regulated institutions and that creates institutions for an offshore dollar situation and i won't go into the details but it is for the boys u.s. dollar.

crimes are you concerned about some of those banks across asia perhaps exposed to treasuries that but just brought down the svb? >> does appear to be rather small. you do have a number of companies on that exposure but not many have admitted to seeing large losses from the bankruptcy. we are pretty sanguine on that. we think the broader macro dynamic does broad -- does happen there. inflation in the aggregate remains relatively benign.

some central banks are pivoting devilishly. asymmetric risk to the upside for nonresident capital flows given the drawdowns that we have seen last year. across there was a much in the way of encouraging market values that came out of the mpc for china. does this lack of correlation between china and what is going on elsewhere in the world may chinese assets more appealing in some way? >> it looks like the reopening rally has some ways to run in china. we do note that the economic plans there were detailed were a little more restraint than the market had expected going into the event with a relatively lower than expected gdp target of around 5%. while that may suggest limited upside to economic activity once the mechanical rebound from ripping peters out, it does suggest that it gives officials more policy space to tackle the

structural problems, the financial risks in the economy and that actually sets it up for long-term much more sustainable growth. crags always great to chat with you. let's take a look at what bell is watching so far in the session. >> i was listening to what sue was saying about these risks of contagion looking fairly contained. the growth prospects likewise are very. she said central banks are turning a little bit more dovish. we are seeing that fallout hitting the korean banks at the start of trading. we are weaker here across the border. japanese banks as well. we have yet to see live pricing. this is one stop starting at the drop -- dropping at the start of trade. we are looking at the state of play just under 10 minutes for

japan and korea. it really does come down to just broad-based losses. >> they say they're ready to provide liquidity amid a selloff of the bank's shares. they look to boost confidence in the lender after the biggest shareholder told bloomberg they were ruling out any extra investment. the pledge of liquidity support if it is needed, do you think that is enough? >> the regulators and the authorities needed to say something. they have at least said liquidity is there. they have not gotten into detail about how that might work, how investors are guessing a little bit as to what that might mean in practice if you are an owner of equity in the situation. we need to see how that plays out. i think given the limitations of

that statement, they will probably need to make additional comments on that. it provides a little bit of a floor. they did not quit set up. that is overstating it. what a significant move there. as you referenced early in the day, the saudi national bank plummets about not increasing our stay, it is kind of a common and aligned they have held pretty firm on in recent times. there is no change in that position. we don't know anything else that might be happening behind the scenes there. really it is about the authorities there trying to shore up confidence. they went to doing that to some degree. let's remind ourselves, even before these last 24 hours, you look at the share performance, it is still down about 70%,

credit suisse is on its second full strategy rebound. a very slow moving kind of series of events trying to create a real fear of contagion and providing its banking facilities but also across the sector. you have seen a material outperformance in parts of asia relative to the u.s.. u.s. banks have sold off quiet heavily. there are big pockets of asia where they have done better. the one who are referencing that, certainly australia. clearly the banks of japan have been under significant pressure. we know they hold a lot of treasuries. clearly this is not just an isolated credit suite.

>> they are falling more than 7% at the morning. how have credit suite been doing given the ongoing restructuring their? >> the restructuring is the second in two years. there have been ongoing restructuring is at credit suisse for some time. the bank is working quiet on overtime to try to make a number of adjustments to shore up confidence. as we learned recently, a long-term holder of credit suisse, even he has thrown in the towel recently. there are a lot of long-term holders in this bank that have been invested for many years if not more than a decade. they have said we just don't want to run into this anymore.

clearly there are a lot of opportunities on that side of the trade. they want to remind themselves that credit suisse still has a banking franchise. it has a good repetition in many areas in the world. there is still value for a lot of people. there still are willing buyers on the other side of the break. >> that was added with the latest on credit suisse and the asian banking system. let's get to su keenan. poor social media stocks rallied in post market trading. sources say the u.s. has told the chinese parent they must sell their shares or face a ban. chuck schumer once bipartisan bills to address the collapse.

shimmers democratic colleague elizabeth warren has introduced a bill that would repeal it. and the british government is proposing more than $100 billion in tax cuts and extra spending their household. this could feel an economic recovery. dentistry's new budget also includes $10 million in fiscal incentives for company is making new investments, jeremy hunt says the measures will help prevent a deep recession. >> the office for budget response ability for costs that because of changing international factors and the measures i take, the u.k. will not enter a technical recession this year. they forecast we will meet the prime minister's priorities to

have inflation, reduce debt and get the economy going. we are following the plan and the plan is working. >> and lloyd austin has book to his russian counterpart about the crash of the u.s. by drone after an encounter with russian work plans. they called their actions dangerous, unprofessional. russia for its part says it did not come into contact with the drone. powered by more than 2700 journalists and analysts in over 120 countries. i am su keenan, this is bloomberg. >> let's get back to annabelle for a look at some of the defense stocks that might be moving with everything that was -- everything that is going on. >> we have seen such a busy news well. north korea, that is what we

understand. that was as before planned. so between south korea and japan between tokyo today. nhk which is a local broadcast independence as this is likely an icbm. that is the one line dispatch that came from there. it was supposed to have taken place around; 10 a.m. near pyongyang's main international airport. we know north korea has the facilities designed to carry a warhead to the u.s.. this is for some of the biggest japanese lenders. broadly, this is after credit

squeezes caught up in the headlines after the saudi international banks said they would not be looking to provide any further liquidity. that is when we are watching across the morning. >> a closer look at how the market terminal might affect the fed and the ecb's next right decisions. this is bloomberg. ♪ go. go green. go wind turbines. go gorgeous reliable grid. go emerson software. go science people. go breakthrough meds and safe science. go space age welds for super silent cars. go big. or go home. from software that delivers new cures at warp speed, to technology that makes clean energy reliable, emerson innovation helps make the world healthier, safer,

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thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh >> concerns over the fallout feeling bets that the fed may cause rate hikes and the events. cutting our global economic policy.

we will see how long the fed will be considering pausing, maybe not cutting yet but doing much less aggressive steps ahead. what we are seeing now, markets are pricing in 100 basis points of rate cuts this year. there may be another rate hike. then they see them going to the downside. the ecb is pressing and is 25 basis point hike as the most likely outcome. and they finally broken something? they know they have done enough in the cycle to bring up inflation. we saw a very important manufacturing report from the empire state. that is the new york fed survey showing the figure from their

expansion and contraction. they sell weaker prices paid. that's all weaker average hours worked. ppi actually fell little bit. that is another sign you can backup this sense of the fed slowing down. may be doing another rate cut hike and pausing and then storing the downward trajectory and a lot of this comes from the financial instability, this crisis will leave some dents on lending and spending. that will all -- i suspect the answer to this next question involves a crystal ball at the very least. is there a sense that the problems for credit suisse --

this is not new in a lot of ways but is a big enough to spill over? that enough to be -- to cause the easy to paul back? >> that is the question. it is the uncertainty. anyway, two central bank officials have said they think this is not necessary now. they should pause. there is too much uncertainty. german inflation up 9.3% year-over-year. you have to inflame very clearly and communicate how they are doing this. how this is contingent on how this does affect the economy. it seems pretty certain they

made a small hike because it is the prudent thing to do for now. it is a pretty big question. >> kathleen hays with a look at the conundrum central banks face. more to come on daybreak: asia. this is bloomberg. ♪ hase mobile® app. use it to set and track your goals, big and small... and see how changes you make today... could help put them within reach. from your first big move to retiring poolside and the other goals along the way wealth plan can help get you there. j.p. morgan wealth management.

>> the first republic bank is weighing strategic options. let's discuss this further with hannah miller. what do we know so far in terms of the range of strategic options? >> we know they are definitely considering this. nothing is finalized yet. this is something we are

definitely keeping tabs on. requested collapse has force startups. what are we seeing? >> with this loss, startups are really going to have to see who they are banking with. they will probably not have as flexible or personal relationship. they were known for cultivating credible relationships, it was by fax -- flexible, hoping that with venture doug, this is a huge loss for the venture capital landscape. >> that is really the question. is there still a chance that this could be salvaged? >> yes. i think there is still interest that from potential buyers,

whether it is by -- that is definitely still up in the air. i think i would bring a lot of relief -- this was a really love institution. if he could continue, i think that would bring a lot of elation to people within silicon valley. >> we have more to come on daybreak asia. this is bloomberg. ♪

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>> let's take a look at the latest breaking data coming through from australia on the

jobs market. this is typically a very volatile series. we are seeing part-time unemployment falling by just about 10,000 month on month. the jobless rate taking a little bit lower to 3.5% against estimates of 3.6%. the full-time unemployment rising by just shy of 75,000 jobs in the month and yet employment rising by 64,500 month on month. that is a little bit more than expectations. the tasty and employment rate down a little bit lower, potentially giving the rba a little bit more room to maneuver. you have to question whether the ongoing turmoil we continue to see across financial markets and financial systems becomes a bigger issue of financial stability for most central banks moving forward from here. >> let's delve into what is happening at credit suisse. >> we are seeing available

crisis. her coanchor wrote down in his interview. cliff they might delay it a little bit. to make sure the ecosystem does not -- they will have to continue the journey. >> coming off the back of a strong set of earnings that beat expectations, you take that momentum into the remainder of the year. what are your expectations?

>> money is fungible. the u.s. has an inflation problem to begin with and these increases in interest rates for sure because a drag on the ability to grow fast. this is a high-speed, high-growth economy. i think even with five or 6%, we will still continue to grow. there are pockets where affordability becomes an issue. we see a decline in some of the mortgage business for obvious reasons. in general, i think we could have done one or two present more growth. because of higher interest

rates, that drag you down but we will see some particular growth. >> i want to get to some of your big events abroad. let's get to the credit suisse. quit a bit more negative over the last few weeks. i am wondering whether you would be open to assisting further if there was another call for additional liquidity from credit suisse. press the answer is absolutely not for many reasons. the simple reason is regulatory and statuary. all kinds of new rules kick in. whether we -- we are not inclined to get into a new regulatory regime. there are five or six other regions but there is a glass ceiling that would you engine -- do not intend to entertain. >> that is the saudi national

bank chairman with bloomberg's yusuf. as more of the asian pacific wakes up this thursday morning, let's recap the extreme market moves we saw in the biden market, especially across financials. david ingles joins us now. i am keen to get your takeaway for this. >> it was only 14% down. there is a barely moved. parentally, from the extreme levels we pulled back but from those extreme levels, we are still at extreme levels. one example is the price of

protection, near per -- near-term protection. this really underscores the other important angle to the story. 37%. that is what some people are willing to pay to protect themselves against default near-term. there is part of last year we were at five or 6%. some of the perpetual bonds which would be the first to go are trading in the 20, 30, $.40 on the dollar. that is the other. we all know with the stock price is doing. when you look at price-to-book, 15%. just for contacts, chinese banks which is the group we look at, these have very low price-to-book ratios is three times more expensive than credit

suisse right now. suffice to say, our headline tells it all. credit suisse has erupted into a full-blown crisis. despite what the officials are saying at the company, the market is not listening. these are trading at extremely distressed levels. >> let's get to su keenan. >> the u.s. is accusing this chinese billing of money laundering. they say they cheated thousands of victims out of more than a billion dollars from fake business and investment opportunities. his financial advisor is also included in the charges. he is an associate of steve bannon and has been living in the u.s. since 2015.

the new zealand economy shrank by more than expected in the fourth quarter, leaving the nation on the brink of recession. the gdp fell .6% from the previous term. global news, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan, this is bloomberg. >> north korea has fired a suspected intercontinental

ballistic morning. it is the first time this visit takes place in japan by a south korean leader since 2019 as they seek ties on issues from trade to security. ambassador, always great to see you. thank you for joining us. a very busy morning. what do you know at this point of the nature of north korea's missile and what is washington's response? >> i have not been briefed yet. it is a year-long effort by north korea in fighting off initials -- missiles and different types of missiles. i think it underscores the president-positive visit to japan and it underscores the

american approach. what is at stake during this japan and korea something to mark energizing allies, energizing alliances. china on the other hand is one of confrontation. look at the u.s. list. japan and korea coming together on the heels of office cooperation to the u.k. and the united states and australia. on the heels of the philippine's president visit here and what is working together between japan, the philippines, the united

states and you could also put the u.k., italy and japan's plan together. china, to battle confrontations on the border with india. two confrontations with the philippine coast guard, strengthening the united states and canadian military plays with a spy balloon over the united states. that is just the last two months. both military and economically through coercion, the united states approach has been to collaborate and cooperate among allies in economic integration. that is really the different approaches and it is why this event, the south korea's president is about allies being strengthened. from an economic standpoint, a

security standpoint and diplomatic effort and lastly, one other additional point which is the united states, japan and korea separately all issued documents this year. they are incredibly strategically aligned and incredibly collaborative and look like chapters of the same book together. that is a good day for japan. that is a good day for korea and america's strategic view. >> has underscored are crucial this visit is? i am wondering what could be achieved from this visit. and how the u.s. part of that alliance will be formed. >> i think this is day one of a new day. i give the prime minister a tremendous amount of credit and being forthright in approaching the history and the events of

the 20th century but also being forthright about the opportunities of the 21st century. this is day one of a new day. i think he was eight and only business cooperation but a security type effort just this year alone with united states organizing. we have had over 40 trilateral meetings. a lot of bilateral trust building exercises on the side of that. he has met with the two leaders on the side at nato in madrid. that happened at the secretary of state level, secretary of defense level. more trilateral meetings in the last year than the last preceding five years. that is a level of collaboration and it is part of the effort where we build alliances. we build and strengthen our allies as part of our economic and national security. that is not true of china.

china does not have allies. they have people that understand the united states is here as a permanent specific power and presence as part of their security and economic worldview. i think united states will take this and build into the future as part of our overall strategic adept -- strategic objective in the indo pacific and transatlantic and the president's objective -- we used to look at the road through the transatlantic and the indo pacific over here. it is one single strategic sphere where alliances cap and reinvest in each other's energy security, supply chain security and economic opportunities. when you have that working, this is a good day for the strategic view of the united states. their entire strategy was built on the division between our allies and collaboration cooperation. >> one of the strategic use is a

priority of curtailing china's ability in his check ambitions. do you hope that out of this newfound alliance between japan and korea that there could be more collaboration when it comes to tech? >> you said the word contain. i don't think the strategy is so much contain as much as deter. i think it comes from a premise. you are on the heels two weeks ago, the dutch company acknowledged there was a person working for the chinese government spying inside the company. intellectual property theft is out of the chinese playbook. economic coercion to both japan and korea, australia, the philippines, lithuania is out of the china playbook. when it comes to the united states, japan, south korea, the dutch which is 90 -- 90% of of the work on semiconductors,

there will be greater collaboration because there is acknowledgment of the last three years, three have changed. covid, coercion and conflict. that means countries that believe in the same idea of freedom, respect for the individual and respect for the rule of law will work together and build economic security together for their future. >> we appreciate your time with us. that was the ambassador -- u.s. ambassador to japan. there las vegas biggest derry exporter terrifying a 50% jump in profit. jim joins us exclusively in just a moment. this is bloomberg. is it not -- ♪ when you automate sales tax with avalara, you don't have to worry about things

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>> breaking out of credit suisse. the group is taking action to strengthen liquidity. they said they are taking decisive measures to proactively strengthen liquidity by intended to exercise their option to borrow from the swiss national bank. up to 50 billion francs that cover a loan facility as well as a short-term liquidity facility.

they are also announcing offers by credit suisse international to repurchase a proximally 3 billion frank. credit suisse has been under incredible pressure falling to a record low, of course, given the fact that it is a tough shareholder, adding to their state. we have seen the swiss national bank providing some liquidity backstop. it seems they are taking up the swiss national bank on its offer. we continue to watch this fast-moving story given the huge implications among financial markets. we will be watching to see whether this can further sooth the volatility we are seeing across markets. a 50% jump posted in profit due to higher prices for dairy products, strong margins across

the protein division. this is the world's biggest derry exporter. they doubled their interim dividend. let's bring in the ceo for global markets. great to have you with us. i really robust set of numbers. do you expect this level of growth can be maintained? how does the china reopening play in that picture? >> it is a pleasing set of first-half results. improving from 6.1 to 8.6. it has been a volatile for six months. the fact that we can move milk between different portfolios and markets has allowed us to maximize volume. clearly we are excited to see china coming back into the market. it has all the hallmarks of a great outlook in terms of a growing middle-class, increased

help focus post-covid and the government coming out and saying they should be eating between 300 and 500 grams of dairy per day. the government getting behind derry gives us confidence that china will be a significant player and a great home for our milk. >> i am curious, this is a pretty big discrepancy when it comes to new zealand -- new zealand versus u.s. pricing. what you see as the difference in the markets right now? >> is to do with our export market. the u.s. market does not export as much as we do. we are exposed to global markets and we have the optionality to be able to move products between markets. china to come off last year. we were able to put more into japan and mortgages south korea, more into the high-volume markets.

i think the fight we have allows us to maximize volume and move product out of powders and into protein, particularly into casings and places week have been able to command higher margins. that is what we have been able to keep our prices high. that is reflected back into the milk price although that has come off since last year. >> could you give us an indication of what percentage goes to that -- goes to those categories as you are moving away from whole milk powder? >> it is all a normal year. i think it is 20 or 30%, we managed to put more into the proteins that has grown around 30% versus 21. equally, if this comes back, we

have the ability to move them back out into powders. this product remain strong and we have seen china come back in morse over the last couple of months so we expect that to keep prices hard. >> to the risks lie on the upside of that range or the downside? what are the key risks? >> we have upgraded the forecast. there was to say we have confidence they will continue to be strong. it is a volatile world. given the strength of the portfolio and will be at our in terms of this being so for the year, we live in a very full -- volatile world. we have had weather events in new zealand. we are very conscience of what milk supply looks like.

the fact that we have taken it up says we are pretty confident but the job is not done, there is still six months to go. >> joining us for the latest on earnings. we have more on that breaking news, we continue to cover the latest crisis on credit suisse. they say they are taking decisive action to proactively strengthen their liquidity. they are going to exercise an option to borrow from the swiss national bank. up to 50 billion swiss franc under that cover the facility as well as short-term liquidity facility. there announcing officers to repurchase certain depth securities. this is coming at a time when credit suisse fell to a record. they have gone through lots of restructuring attempts trying to spin out the investment banking

unit, focusing on the key wealth management business. given the fact that their top shareholder ruled out at into their stay, that has proctored some volatility and some market pessimism on the company. >> there will be the hope that this move from credit swiss will be enough to buy them some time. remember, this is not new. this has been a long and drawn out most all your effort. the restructuring is just underway. we know this is what they need, more time to be able to enact the revamp. that has come under threat. we see that intensifying route. the central bank is budgeted to provide liquidity if credit suisse was deleted. we saw some of that, the

volatility in the markets. it would be very interesting to see the market reaction. we see stocks extending the game now up to 2%. we are raising the lost six basis points. we are also seeing that reaction across asian markets. the topics pairing a loss to 1.6%. the nikkei 225 doing a little bit better reaction from the move to credit suisse. we will continue the countdown of trading in the european session as well. there will be key to see how markets take these credit suisse developments. this is bloomberg. ♪

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