yvonne: you're watching " daybreak: asia." australia has just come online. top stories this hour -- donald trump indicted for allegedly playing -- paying hush money to stormy daniels, the first former president in u.s. history to face criminal charges. asia set to extend a wall street rally field by tech, but the fed aces pressure as officials recommit to the inflation fight. and the biden administration urging tighter regulation from midsize banks, warning rollback of rules may have gone too far. >> these remind us of the urgent need to complete unfinished business, to finalize postcrisis reforms, consider if d regulation may have gone too far .

heidi: we have breaking news when it comes to production numbers out of south korea. we are seeing a huge miss month on month. that's easily adjusted number coming in at a contraction of 3.2%, extending the decline -- the expectations were for .6%, but much worse than that, and really reversing the almost 3% gain we saw in the previous month. we saw a decline of 8.1%, also somewhat worse than expectations of 7.5%. >> certainly want to be watching when we have the open in one hour, but in the session, we have australia coming online and some of the day's trading climbing in today's trading. we saw the nasdaq pushing further into bull territory overnight. in terms of the outlook, we can expect fairly choppy trading. we are at the end of the quarter now, so we will see some quarter

end rebalancing going on. possibly kiwi stocks under pressure. we do see more effects of tightening showing up in the economy because consumer confidence again slipping in the latest reading. evening an eye on china today given we have more coming through on that alibaba plan to split up, we are told is it now looking to ipo its logistics arm , so certainly want to keep and i only open of alibaba in the session in a couple of hours. shery: futures not doing much after the s&p 500 gained ground. tech and real estate leading the gains, and we have the nasdaq one hundred pushing further into will market territory. we are awaiting that pce core deflator, talking about the fed's preferred date of inflation coming out friday. the picture in the treasury space was pretty mixed. the two-year yield higher, the two-year yield lower, so not a

lot of big moves in the treasury market, but we did see crude prices fall or rise to a two-week high. we are seeing a bit of pressure in asian sessions mostly to do with export disruptions, not to mention broader bullish sentiment. haidi: of course, politics in focus. donald trump calling his indictment a political persecution. a new york grand jury voting to indict him for allegedly paying hush money to stormy daniels, making him the first former u.s. president to face criminal charges. let's bring in jack fitzpatrick as well as our political news reporter, jodi schneider. we have seen reaction from the former president. in a way, this very much lays into the kind of grievance-driven narrative that he has embraced for a very long time. jodi: yes, this is really donald trump's playbook. as you may recall, he said he

was going to be arrested a week and a half ago and he wasn't, but now he is saying the same kind of thing he did say when he claimed he would be arrested. he is saying is it's a political witchhunt, and he is leveling blame at the district attorney in manhattan, saying that this is politically motivated, they are out to get him, and they want to stop his campaign for president, that he is the front runner. we are also hearing from supporters of donald trump saying the same thing, leveling a lot of criticism at the da in manhattan, saying this was a case that is politically motivated. it is, of course, alleging that he paid hush money to pornography star stormy daniels and that he falsified documents in that payment. haidi: his rival, ron desantis of the republican, coming out saying the weaponization of the legal system to advance a political agenda turns the rule of law on its head, that is it's un-american. how will this play out in his

base? jack: clearly, the former president is trying to take an approach with this to motivate his base. he is kind of leaning into this. his statement was very lengthy, going after alvin bragg, a litany of complaints about how he has been treated by democrats. it is may be something he sees as an opportunity to motivate his base. it does raise questions about any more persuadable voters, and it is notable that we saw generally a supportive statement of trump i florida governor ron desantis, seeing as dissent this is seen right now as maybe the top contender for the republican nomination for president against trump, maybe the second-tier person after trump. it is, i think, an opportunity for anyone who does not know exactly how to play this to direct the attention to bragg. dissent is does not need to necessarily go after trump.

other republicans do not necessarily need to go after trump. you are seeing a lot of pressure to sort of direct their attention elsewhere. >> there are other charges that are underway. we know that previous impeachments ended up playing out quite favorably. do we see this rallying not just his face but potentially political support within the party? >> within the party, clearly the initial reaction is pretty supportive. i'm seeing statements in support of trump from not just diehard trump supporters, but really, the mainstream republican members. there was one from kevin mccarthy that was similar even to what you heard from ron desantis. thom tillis from north carolina. essentially, the reasoning that led to the impeachment -- impeachments, plural, failing on

trump is what you are seeing from the mainstream republican lawmakers standing by him. maybe if some hope he does not succeed in winning a nomination going forward, they are not necessarily saying outright. there's still some solid support for trump from republican lawmakers. >> how can we expect this to play out in the next few days? when president trump is arraigned by the district attorney's office and when we get the specific charges, what could the picture look like? jodi: you're right, implicit in your question, we have not even seen the charges yet. the indictment will be sealed. him showing up is the question. in his statement, interestingly, ron desantis, the florida governor's statement, he first of all did not mention donald trump's name, which is interesting, but he said he would not extradite him from

florida, so that is interesting. we really do not know if he would be made to show up. there has been talk that the secret service could not protect him adequately, and therefore he would not necessarily have to show up in person. we will really have to see how that plays out. the other question is protests. when donald trump said it weaken a half ago that he was going to be indicted that tuesday, that did not happen. he did call for people to protest, and there were some concerns, and there was a lot of protection that went up around that manhattan courthouse that still remains in case there were protests, so we will really have to see, but i expect this indictment will be sealed to quickly, and we will see what happens in the courthouse tomorrow in manhattan. haidi: political news director jodi schneider as well as congress reporter jack fitzpatrick. let's bring in lester munson for his thoughts on what is happening with indictment of

former president trump. lester, it is good to have you. give us first of all your reaction and expectations of how this will play out in the next few weeks and months. lester: i think this indictment, at least from what we are able to know of it thus far, is a big mistake by the prosecutor. the issues at hand same thing to be bringing a criminal charge against not only a former president but someone who is in fact a leading presidential candidate for our next election next year. it is rarely shocking, and i think this is a very big mistake by the prosecutor. i think it is likely to play out to the benefit of this to trump, and he is certainly going to exploit it to maximum benefit in the days ahead. haidi: president trump is already calling the indictment political persecution and election interference on the highest level in history. give us your expectations of the reaction at the gop. we saw ron desantis with a

reaction on twitter, and more broadly and more specifically to president trump's base. >> right, and i expect we will see -- of course, his base will be outraged. we will see other republicans who do not style themselves as supporters of the president expressed great reservation. the question will be of democrats, do you support this prosecution of a former president and reading candidate -- leading candidate. this doesn't seem like politicization of the prosecutorial process. -- this does seem like politicization of the prosecutorial process. >> does it play into the playbook the former president has really stuck to since the start of his political life? >> it does. he likes to style himself as the victim. there's no doubt, and he's going to be able to exploit this. how much he will be able to

benefit i think is an open question. we will see if governor desantis can exploit his own position and say that he is the defender and protector of donald trump. i don't think mr. trump would like that very much either, so i think we will see everyone in the political game trying to use this to their advantage. it is an easy win right now for mr. trump. does it really help him over the long run? probably not that much. the behavior at the core of this is not particularly defensible. does not mean he should be indicted criminally for. haidi: we are getting more lines when it comes to the manhattan d.a. spokesperson saying that the arraignment remains under seal. spokesperson says to coordinate trump's servant are, and that contact has been made with mr. trump's attorney as well. as we get these images of what is going on in manhattan at the moment, we know there was criticism over how long it took us to get to this point, to get

the indictment. do you think -- you clearly think the timing will not reflect positively. should this have been done quicker to avoid against the accusation that this is politically motivated? >> i suppose so. the reality is if this process plays out as we think it might -- remember, there is an arraignment and some sort of intervention with mr. trump -- even if all of that happens, it is highly unlikely he will be brought to trial before the election in november. so what is the meaning of this? why does it have to be done now? the issues where he appears to be at risk for his behavior are so marginal and such a judgment call, it does recall in 2016, for those of us who were paying attention then, the decision by the fbi director not to bring charges against hillary clinton on the eve of an election. i think a sounder prosecutorial

judgment would have been similar. don't bring charges. let voters decide. the issues at hand are so tissue-thin and judgment till that it is really just not appropriate for someone as a prosecutor to be making this decision on behalf of everyone else. haidi: great to have you with us. we appreciate your time today. we do have that statement from the manhattan da's office, very brief, of course, saying this evening, we contacted mr. trump's attorneys took ordinate his surrender to the new york attorney's office -- two coordinate his surrender to the new york attorney's office. we did hear from mr. trump's attorneys earlier that they expect an arraignment in the coming days. donald trump, has of course, responded with a statement of his own, calling the indictment political persecution and election interference at the highest level in history. we know that he was prepared for this.

we have all been prepared for this as we have been awaiting news of this indictment for the past few weeks amidst this ongoing investigation. the former president indicted in new york today for directing hush money payments to pornography star stormy daniels during his 2016 election campaign. it is a historic event in american law and politics that is certain to divide, as we have already seen the already polarized electorate. there is a lot that we don't yet know. shery: we have not seen the exact charges against the president. we know that will come as the arraignment happens, but prosecutors working for the district attorney in the coming days, so we will get a view of the exact charges leveled against former president, but as you said, this will really divide the country even more. we have seen president trump taking to social media recently saying that this could actually spark protests and warn of

potential death and destruction if he is charged. for now, let's get to su keenan with some other first word headlines. su: we begin with the white house, which is pressing regulators to tighten regulations for u.s. banks. they called on federal agencies to conduct a series of measures including reinstating rules including liquidity requirements for banks with assets between $100 billion and $250 billion, as well as enhanced stress testing, and none of the measures require congressional approval. u.s. treasury secretary janet yellen meanwhile warned that efforts to loosen tighter banking rules put in place after the 2008 financial crisis might have gone too far. she thinks it contributed to the recent turmoil among midsize banks and called for a return to stronger oversight. >> these events remind us of the urgent need to complete unfinished business, to finalize postcrisis reforms, consider if

deregulation may have gone too far, and repair the cracks in the regulatory perimeter that the recent shocks have revealed. su: angst have reduced their borrowings from two fed-backed facilities, and sign that liquidity may be stabilizing. a combined $158 billion in outstanding borrowings in the week through march 29 compared with $164 billion in the previous week. outstanding loans on the feta for -- the fed's so-called discount window fell to $88 billion. global news powered by more than 2700 journalists and analysts in over 120 countries. i'm su keenan. this is bloomberg. haidi: coming up, but your gust tells us why and earnings recession is already upon us. their global outlook next. this is bloomberg. ♪

>> it will probably take us a while until we fully understand are there more losses out there? the other thing is it is unclear right now is how much of this, of the banking stresses over the past few weeks, is leading to a sustained credit crunch which would then slow down the u.s. economy? haidi: neel kashkari and boston's fed president on the fight against inflation that is ongoing. our next guest says earnings recession is already upon us, so now is the time to be selective. you look at some segments of the market, especially for the rotation away from value back into growth, a rebound in tech, the bull market for the nasdaq, and you think those risks are in the rearview mirror. do you think that is the case?

>> i don't think that that is the case. certainly, investors have shifted gear quickly, and we did see this rally in the nasdaq. it is up putting percent since december lows, which is almost remarkable when the s&p is up only 6.5%. you do have this bifurcated outperformance of the nasdaq, but i think it is also because that is what was taken -- that was the part of the market that took such a big hit last year. that's where you saw multiple compression and some earnings compression but not necessarily as much earnings compression as multiple compression. what i think we are into right now is the earnings compression cycle across the board, and we have had already two quarters of down earnings.

we are about to see reports for q1 coming up in the next few weeks, and i think we are going to see more challenges with margins and earnings, so the risks are not over, and i think you will see changes in investor behavior recognizing that there are some companies with high levels of risk and others that might be pretty attractive here. haidi: mid-caps in particular and dividend players, but specifically this is where you have to be really active, right? you are not really differentiating between groups like value by growth. >> that's really correct. what we have seen this year despite what i set about nasdaq outperformance, is we have seen the market move on macro but stocks move on fundamentals or the micro, and that is different from what we saw in 2022 where everything moved in the same

direction based on macro information. we are seeing a real recognition that fundamentals do matter, and i think we will see better outperformance with companies that can control their own destination that have secular advantages, especially those in that mid-cap space. they don't have as much pressure as some of the large cap names do, and they might not have as high of a risk getting capital. that's what most small-cap companies do at this point. shery: the differentiation you are seeing, is that because the macro environment has become that much more challenging? i ask this as we head towards data from the fed's furred -- preferred indicator of inflation, hopefully giving us a sense of where they will go from here? >> you could say macro indicators are even worse now.

we have high rates. we still have high inflation. certainly it is different than it was over the last decade plus. we are in a different environment, and this makes it challenging for companies to really control their own destiny. there's no free lunch. there is a real risk for failure, so now it is the ceo's, cfo's, the company management team -- it is their job to really do the best they can to control their own destiny, and we will see winners and losers. we will see real failures in this cycle, but i think this is where active management and good stock selection comes into play. you don't need to own every stock in the index in this part of the cycle. it is important to be selective and only own companies that really can outperform in this environment, which is going to be more challenging. shery: thank you so much for joining us on a busy newsday. we do have plenty more to come

on "daybreak: asia." this is bloomberg. ♪ , truckload capacity and dedicated trucks and drivers.

haidi: here's a quick check of the latest business flash headlines. china's biggest state-owned banks have delivered gains after restricting lending to boost the economy. the lenders mostly met or beat forecasts. icbc was the only major whose net income fell short of estimates. sources say chinese regulators have met with lenders to discuss the disposal of silicon valley bank's. 50% holding in a local joint venture. we are told some chinese lenders have already indicated interest. the move suggests beijing is wary of the potential impact on the nation's 54 trillion dollar

banking system. tesla is said to be looking to build a battery plant in the u.s. sources say tesla discussed plans with the world's largest ev battery maker and the white house in recent days. we are told it wants to pursue a similar deal with that afford and atl, which are building a factory in michigan wholly owned by the u.s. automaker -- that of ford and atl. china's economy is taking off post-covid, but the beige book ceo says the critical question is what the second quarter will look like, and the x factor is retail. this is bloomberg. ♪

shery: we do have breaking news

out of japan. we are getting the latest jobless numbers and the rate coming in at 2.6% for the month of february, which is a higher unemployment rate than what was expected. economists had expected it to remain at around 2.4%, but we are seeing it rise to 2.6%. the job to applicant ratio also coming in at 1.34, which is fewer jobs to applicant ratio than was expected at 1.36. it has also decreased from the previous month. the expectation was for stronger demand for workers in the service sector, especially tourism, to actually lead to more jobs. it looks like the jobless rate has actually increased. we are also getting the tokyo cpi numbers. year on year, growth of 3.3% for the month of march. this is also coming in at a faster acceleration than expected. it is still easing a little bit from the previous month, especially when you look at the

core cpi numbers for tokyo you're on your growth of 3.2%. but this is also higher acceleration than was expected. we watch tokyo because it gives an indication of where national prices are going as we are trying to see where the boj goes from here. haidi: that's right. the question is if the data will ever be strong enough to force the boj to shift policy settings, but looking at what we are seeing in the japanese yen, we have just seen it drop slightly against the greenback with the release of that data. it has been really whipsawed. it is typically thin at this point because we are approaching the end of the japanese financial year today, march 31, but when you put it out over a longer term perspective, you can see a lot of that weakness we saw in the japanese yen last year, something that really helped the biggest exporters in the country, that has now

reversed or retraced that to these levels. yen strength going back in. that question of what the boj is going to do -- we have seen volatility suggesting that traders are positioning for kaslow -- kazuo ueda's first policy decision. in terms of how that plays out for the economy, our bloomberg economics team saying when you see that yen strength coming back in, it could pose a further headwind growth in japan, and they have actually just cut their projections for this year to growth of .8%. it was earlier at 1.1% back in november, so yen strength coming through. strong tourism numbers, also good business spending, but certainly something to be watching as well with the data. haidi: let's get to su keenan with first word headlines.

su: eu president ursula von der leyen warned the bloc of the risks of dealing with china. despite u.s. pressure for a tougher eu position against china, she argued in a speech in brussels for ensuring economic stability and open communication lines with beijing. however, she did add that china's stance on rusher's invasion of ukraine will be a determining factor in relations. >> i believe it is neither viable nor in europe's interests to decouple from china. our relations are not black or white, and our response cannot be either. this is why we need to focus on de-risk, not decouple. su: findling has cleared the last obstacle to joining nato after turkey's parliament approved its bid to join.

sweden also sought nato membership, which both hungary and turkey oppose, but efforts are still underway for sweden to join the block. the u.s. state department says it requests consular access to an american drone detained in russia on spying accusations. who's the first u.s. reporter held on spying charges since the cold war. russia says he was caught red-handed collecting state secrets. secretary of state antony blinken says the u.s. condemns attempts to repress journalists. i'm su keenan. this is bloomberg. haidi: china's tech ipo train appears to be on the move again. sources say alibaba's logistics arm will seek a hong kong listing and rival jd.com has

already applied for ipo's of two of its units. we know that the restructuring was going to kick off at least the expectation of a wave of new share sales. >> this is essentially what it looks like, the beginning of a possible new wave of sales. here in hong kong, it has been take real barren landscape for them over the last couple of years, obviously because of the regulatory crackdown and also stricter sting requirements, data security reviews, and the like. in the first couple of months of this year, ipo's from china essentially down about 40% from a year ago. last year, levels were down 69% from the level of 2021. obviously, the hong kong stock exchange looking at this with welcome news, and i see this restructuring that we announced earlier this week or alibaba announced, we reported, as essentially a proxy approval for

blessing from beijing to, you know, begin these ipo's and listings again. what we are hearing from sources is that of those six divisions that will be spun off essentially from alibaba group, this will likely be the first. of all six, it is probably the one that is most ready to stand alone. it is the logistics arm of package delivery and the like. it has 15 delivery centers around the world, and of course, all across china. we don't know how much they plan to raise, but it could be by the end of this year depending on market conditions. the other side of the story is chief rival jd.com has indeed already applied to the hong kong stock exchange to list two units. we did not know the size of these listings, put what we did see from that filing to the hong

kong stock exchange is that jd.com, the parent, would likely maintain at least a 50% controlling stake, so welcome news for those who have been trend to get into the ipo trade, onboard board, and obviously good news for the hong kong stock exchange. haidi: chief north asia correspondent stephen engle with more positive news when it comes to markets and investors perhaps looking for more activity. >> we will expand market access, optimize the business environment, ensure the imitation of projects, and launch a series of new measures to optimize the environment for state, private, and foreign enterprises. haidi: our next guest says

china's economy may still be months away from the "bombastic activation" the markets had position for. always good to have you with us. what are you expecting for the second quarter then? >> i think you look at the first quarter first and what it wasn't. back in december, what we make clear was that yes, china was reopening, but it was not going to reactivate. you had everyone's sick with covid. covid zero took many months to get out of their system, so you look at march and april into the second quarter at the potential time for this recovery. if you look at the first quarter, you did not see this revenge spending everyone was hoping about. you did not see an explosive rebound, but things are lining up in a positive way. if you look at retail and services data on the top level,

not great yet. disappointing maybe, but if you are looking at borrowing numbers and numbers, the trend is going up, march was better than february, so i think we will see a much stronger second quarter and things could get a lot better later this year. haidi: why didn't we see that revenge spending? what was happening on the ground that did not lead to those forecasts, and how important is that for the rest of the world as we continue to speak to analysts who are really hoping that china will actually drive growth this year? >> that is an extremely optimistic scenario because everyone talks about china's gdp growth going up. yes, china's growth is going up and china's services will improve and manufacturing will improve, but china's growth per se does not energize the rest of the world. they will need the chinese consumer to be reactivating, so that is a big question. the reason this did not have an earlier was because everybody was sick with covid are getting over the hiccups of transitioning from the covid

zero era. you look at several indicators that said people are moving around, but they were not buying, not investing, not hiring. we are starting to see that now, so we are on the cusp of a much more impressive set of data. the second quarter is shaping up to be quite good, but the question will be if the second quarter, you know, bouncing off a terrible putting 22, the numbers will be better even if they are not great, so everything will look great -- everything look better in the second quarter. the question is will there be policy support for the rest of the year? the better the second quarter is, the less they will need it, so it is a bit of a paradox for markets. haidi: what is to say we will ever get back to the bombastic reaction -- i love that phrase, by the way. for the consumer, the property market has traditionally been that source of high confidence, right, and household wealth, and we know that is not really recovering any time soon.

>> i think that is a perfect way to put it. we are entering an era of structurally low growth. 2022 was an absolute disaster. the chinese government announced very low growth numbers. our numbers were even worse. particularly for the second quarter, particularly for the fourth quarter. they will be an improvement of wendy 22 an improvement from the second quarter, which if you remember was when shanghai and those other areas had big lockdowns. there will be a bombastic activation, you get a bit of revenge spending, better data bouncing off your comparison, but you are not going into an era of anything other than structurally lower growth. any search is going to ultimately be a head fake in 2023. haidi: what are the expectations when it comes to policy support? any sort of worries about smaller lenders in china have been released by saying that any

type of policy intervention, the not so invisible hand, that china is willing to extend. >> we are seeing support into property. we have been seeing that since december. you are seeing flows, seeing support for a property sector in bad shape, but you are also seeing exactly what you said, the government hand at work. you can see the government pushing policy. interest rates slid dramatically . it is pretty amazing because you had very high credit costs in 2021. in 2022, they just fell hard. all those major important categories, the consumer private firm, all these areas of the economy that the government has been promising support -- we saw it crystal clear in our data. really cheap credit compared to what we have seen the last couple of years, so the government is activated right now. the question is if you get an

organic recovery, you get nice data in q2, how much will this continue to be sustainable? shery: given all the indications you have seen from the government, especially on's terms of where they want to put that support to work, what do you see in terms of regulation? we have talked about alibaba and its new restructuring leading to a wave of ipo's in china and how this might signal that the dust has settled when it comes to the regulatory crackdown that we saw not only in tech giants but also in the education sector and so many different parts of the chinese economy. >> i think it is an interesting question because yes, i think we are seeing a phasing out of the regulatory crackdown's but we are seeing a rise of corporate governance nightmares. yes, you are not seeing these crackdowns that scared everyone in wendy 21 and 2022 and led stock prices to just slide down.

yes, we are seeing an end to that, but what we are seeing is the party becoming much more involved with individual companies, not just putting people in board rooms but actually having golden shares taken in all the big companies. the question is how much is beijing -- yes, it is releasing companies from their regular tory grasp, but how much will they be affecting how these companies are run? ultimately, they are going to be run for the party, but that could mean something very different if the party decides it wants to use these as tools for its social agenda. haidi: always great to have you with us. we are looking at live pictures of the manhattan district attorney's office, and we are seeing some presence of protesters arriving. of course, a lot of media coverage. we have been prepared for this announcement of the indictment of former president trump for weeks now, but that happened today in new york.

the indictment is for directing hush money payments to pornography star stormy daniels during his 2016 election campaign. we're starting to see the impact when it comes to the division to an already polarized society and electorate, and of course, expectations that this will really galvanize based supporters, but also of course his supporters within the republican party. we have seen that reaction from ron desantis, already, attacking the da in manhattan and signaling that florida would not help extradite donald trump after that indictment. we have, of course, the latest on this breaking news story for you. much more to come on "daybreak asia." this is bloomberg. ♪

haidi: new legislation will force companies with more than 100 employees to reveal their gender pay gaps. the law aims to speed up workplace equality in australia. there are similar policies already in place in the eu and u.k.. we are joined by the university of sydney business school advisor and our very own bloomberg opinion editor. let me start off with you -- give us your views on if this legislation goes far enough, if we have seen evidence that it will actually work. >> i think making this move to

making transparent the gaps that we see in pay across different employers is a very good move. employers in estrella you about 100 employees already report data to a government agency, so this is simply saying that that data, which employers already put quite some effort into collecting, will be made public. i think this is a good thing and it is a logical measure. of course, disclosure is a great move, but it is not the only thing. it will never be that simple because what we need to do is use the insights that we get from data actually take action around a range of factors that disadvantage and discriminate against women in labor force per dissipation. >> in your piece, which is excellent, by the way, you talk about this as a necessary starting point, but reporting transparency does not get us to pay parity.

>> what struck me is that we are seeing more and more countries do it. i guess the pioneer was the u.k., which started in 2017, to report it. if you look at the figures, this last mile, 80% to 100% is where we are stuck, so the question is -- as she said, we have to keep doing it. we have to report the gender pay gap, and it is definitely a move in the right direction, but it does raise the question of what else needs to be done because it does seem that this last mile is the hardest to close, if you like. so, yeah, i think that's what we need to focus on now, what else can be done? at the end of the day, reporting the gender pay gap is vital,

necessary. it is a numbers game, but it does feel that companies now need to do more around these cultural norms, you know, the stereotypes that are preventing women to just get to that finishing line in terms of closing the gender pay gap and reaching parity. >> you have actually called this segmentation and segregation, where you have men dominating the most lucrative professions and most senior hierarchical roles. what needs to be done? what else on top of just transparency? >> we talk about this really being about an architecture difference and discover nation in the labor force. we always talk about the glass ceiling, which is where women looked up into the organizational hierarchy, and they can see that there is a way to get through, but they keep

bumping their head on that ceiling. we also need to address glass walls, and that is where we have quite significant occupational and industry segregation. as you say, mend -- men tend to dominate in those climbing sectors, but there's also the phenomenon of the sticky floor, which is where women are sitting on the bottom of the labor market in roles and indeed in whole industries where there is very tight compression of wages and very poor career paths. what we are trying to do is dismantle that architecture of discrimination and indifference, and that means not just disclosure but also taking action to break down those walls that segregate men and women into different occupations and professions. to build a career path and blast that glass ceiling, if we can. we also need to take action to

have a look at something that really holds women back, which is motherhood penalty and penalties around working flexibly and caring for children. action there would really pay great dividends for businesses. >> i wanted to ask you, in terms of the motherhood penalty, there was some interesting research out of the u.s. showing that workaholic men are pooling or cutting hours at a far greater rate than other segments. is this something we need to normalize that flexibility where men and women will be able to take the same amount of flexibility that will allow women, i guess, not to be judged as much for taking more time out? >> the difference in the paid hours that men do and women do,

it is all part of the puzzle. men working hyper long hours is associated with gender inequality because somebody need to care, and that typically falls to women, particularly in economies where very long hours are the norm. again in our region like korea and japan where long hours are connected with differences in terms of what women do because they are not working those long hours and they don't have access to them because their husbands are often working long hours. shery: thank you very much for joining us today. we do have more to come. this is bloomberg. ♪ today, when active investing and disciplined risk management

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haidi: retail sales meeting expectations, the factory gauge rising 4.5% month on month, retail sales rising 1.4% month on month. we have the tokyo and seoul open next. this is bloomberg. ♪ what does it mean to be ever better? its your customers getting what they ordered when they expect it. discover how ryder ecommerce makes your customer's experience ever better.

shery: this is "bloomberg daybreak: asia." under the positive lead from wall street where we have the s&p 500 gaining ground, nasdaq further interval market territory. more tightening comments from fed officials. we have political news to watch out for, the indictment of former president trump. haidi: a historic event in manhattan today. we see security being out in force in front of the da's office, is expected to galvanize support from the former president's base. political risk notwithstanding. the markets are back focusing on this and need for further tightening been flagged by the fed though. annabelle: that is front and center as we get the opening moments from japan, south korea, and the opening of cash treasuries with the two year yield coming online. a fairly steady day, at the dollar also a little changed.

we are waited ahead of the preferred key inflation gauge. nikkei coming online to the upside. japanese yen looking weaker after we saw tokyo inflation price pressures easing further in the month prior. in korea, we have the kospi coming online to the upside. tech stocks at the open, kosdaq outpacing broader gains actually coming on flat. the nasdaq switching further into bull market territory. we have australia one hour into their session, energy stocks at leading losses. we are watching oil in particular coming online, brent crude with the open all little higher just under the $80 per barrel level. shery: let's bring in our next guest who likes chinese and korean equities but advises adding defensiveness in portfolios. the asia-pacific equity strategist. good to have you back. what does defensiveness look

like in a portfolio for you? >> that is a very good question. our definition of defensiveness is either you can have companies which have strong balance sheets or companies holding a lot of cash. some of these companies are paying good dividends. maybe some of these companies are embarking on buybacks to support prices. the other area of defensiveness for asia is you focus on some of these idiosyncratic teams in asia. in my view, china reopening recovery is still a very idiosyncratic piece. irrespective of what happens in the u.s. in terms of banking issues or slow down recession over europe, this will continue over a while. you will have reopening, recovery place, consumer plays. a third team i would say is we can be hiding in some certain styles in the market.

some of the work we have done shows that dividends tends to be a defensive team and it tends to outperform when you have an environment where growth is slowing down and there is stress in the economies. that is what happened during 2008-2000 down -- 2009 down cycle. shery: you mentioned the banking turmoil. can we look past of that? we saw some strength on asian financials even before this happened. >> i think it looks like the worst of the banking sector issues are possibly behind us. that is obviously i would say less a conviction call here, but for asia i would say things are a bit different. we have not had similar issues, and part of the reason is most asian central banks did not take -- hike interest rates quite is

aggressively as the u.s. maybe the philippines were an exception and korea was an exception, but largely inflation was not not such a big problem here. we did not have issues in the banks. it does make sense to be a bit selective on the banks here, and our view is that banks in asia predominantly from countries tend to be very level two bond yields in the u.s. singapore, korea, taiwan. they might struggle if you assume we are going into an area where bond yields start declining. on the other is to banks in southeast asia, india, hong kong, china might be ok because of the local factors possibly will continue to support these banks. it is a bit nuanced of of you there. -- a view there. haidi: are you nowise when it

comes to the broader lift of asian tech, china tech and more broadly emerging-market equities given the initial exuberance in reaction to the alibaba restructuring? >> well, there could be some bit of a reaction, but i personally think that what we have seen over the last two or three days there is a very good positive outcome for overall chinese equity space. the way i am thinking, this is something we would not have expected six months ago, because the sentiment in the sector was pretty cautious, but the fact that these companies are embarking on a value unlocking, you would expect a late -- speculate this is a very good signal policymakers are actually supporting the private sector. this was not the case six months ago.

i would say very good for china equities. haidi: what are your assumptions about fx going forward, the strength of the u.s. dollar? >> i think on a month basis, our view is that the dollar might actually soft and and asia fx should strengthen. again, that is positive for our space. let's say in the next few weeks, let us say the banking sector issues are behind us, and assuming the market focuses back on u.s. inflation, you could see a scenario where the shortened bond yield starts increasing again, and maybe the dollar strengthening might come back again. on a month on month basis, i would expect the dollar to be softer and asia to be stronger. haidi: chetan, always great to have you with us. we will get back to the latest

when it comes to our top story. donald trump is calling his indictment a political persecution. a new york grand jury as voted to invite him for allegedly paying hush money to the porn start stormy daniels, making him the first former president to face criminal charges. that spring our political news director jodi schneider. there was a lot we do not know yet and terms of the charges, we have heard the response from donald trump. >> that is right. the charges have not been unsealed yet, this is all according to people familiar with the indictment. we expect them to be unsealed in the next day in the manhattan court. in the meantime, we are hearing from the former resident on his truth social account calling it a political witchhunt, that this is intended. he says that this is the democrats intending to try to get him not to run for president again, and he is saying is political persecution. we have heard this from the former president before.

you may recall about 1.5 weeks ago he said he expected to be indicted that tuesday, and he was not. it would be political persecution. he was actually able to fund raise race off of that earlier statement, and now we are hearing from him on this. there is a lot of attacking from his camp and from his supporters of alvin bragg, the manhattan d.a., saying they were going after the president. that these charges are ridiculous, and it is politically motivated. the charges are, of course, that the former president had paid -- had made a payment to a pron sta r stormy -- porn start stormy daniels and that he falsified documents. shery: this is only one of the investigations against president trump, right?

how does this play into 2024? you mentioned it briefly, but i wonder if this will really galvanize his supporters, and we have already seen words of support coming from his political rival ron desantis. >> ron desantis interestingly in his statement did not mention donald trump's name but did come out against alvin bragg and the manhattan d.a. for making these charges, saying they were politically motivated and wrongheaded. he said he would not extradite the former president from florida. he would not require him to go to new york. the former president, it is very interesting. he has about 30% of republicans as his core base, and that seems to be a pretty unshakable base. the question now is would lend that indictment and perhaps charges in other cases, there are still the cases in georgia

about lecture on interference -- election interference, and of course the special counsel's investigation into the documents at mar-a-lago. there are all of those other cases, and if any of those were to result in charges along with this indictment, it is unclear what that does. we have never seen a former president indicted. we have never seen a former president who intends to run again indicted. so this really is historic, and we are in uncharted territory to see how this ends up politically. we have not yet heard from president biden, who is expected to announce at some point that he will be running in 2024. of course donald trump would then be his opponent. we have not heard from him yet on his opinion, his thoughts about this indictment that again would likely be unsealed tomorrow in manhattan. haidi: we are seeing a

heightened security already in the days and weeks preparing for this indictment to be announced in manhattan and at some signs of protesters already a response. we know that president trump himself on his truth social platform had warned of"death and destruction" saying how a former president could be charged with a crime. are there legitimate concerns especially given what we saw with the capitol building riot that this could happen again? >> certainly, they are taking precautions. there have been to barricades up around the courthouse in manhattan. there is a lot of extra security there. there is extra security at the capitol in d.c. as well out of concerns about this. we are not hearing any immediate concerns, but of course this is something. after that january 6 attacks on the capitol two years ago, there

have been heightened concerns about any of these kinds of political issues and government officials have taken extra steps around the country. shery: jodi schneider there with the latest on trump's indictment. let's get to su keenan. su: the white house is pressing regulators to tighten the rules for mid side u.s. banks. it called on agencies to enact measures from the treasury department including reinstating rules and liquidity requirements for banks. and enhanced stress testing. none of the measures require congressional approval. u.s. treasury secretary janet yellen warned efforts to loosen tighter banking rules put in place after the 2008 financial crisis might have gone too far. she thinks it contributed to the recent turmoil among midsized

banks and called for a return to stronger oversight. >> these events remind us of the urgent need to complete unfinished business, to finalize postcrisis reforms, considering whether deregulation may have gone too far, and repair the cracks and the perimeter that the recent shops have revealed. su: finland has cleared the last obstacle to joining nato. this after turkey's parliament voted to approve its membership. it means all 30 members have ratified finland's bid to join the defense alliance launched after rush's invasion of ukraine. sweden also sought nato membership. efforts are still underway for sweden to join the bloc. china's new vice premier will be seeing regulation -- overseeing regulation of the country's

financial sector. he has been given the task of showing off -- shoring up the housing sector. those duties were split between two vice premier's. fung is known as a close confidant of president xi jinping. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am su keenan. this is bloomberg. shery: crypto exchange okx weighs and anna moves to market itself as a digital hub for assets. objects, and exclusive interview with the british high commissioner to singapore on trade. kara owen joins us live shortly. this is bloomberg. ♪

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shery: the u.k. has taken a major step in concluding negotiations to join the cptpt trade pact. for the u.k., it is the biggest trade agreement since brexit. let's cross over to singapore where haslinda amin is standing by with the next guest. >> joining us exclusively now and for the first interview anywhere in the world, the news broke 10 minutes ago is the british high commissioner to singapore kara owen. how important is this to the u.k.? >> you will forgive me for celebrating alongside you. this is a major moment for the u.k. joining the cptpp. it is one of the most aggressive

and far-reaching trade agreements anywhere in the world, but it is a big moment for cptpp. up until now it has been a pacific agreement. we will be the second biggest economy within the cptpp group, and it turns it from a pacific rim and the global human of countries that are hugely motivated to retain and advance free, open, and fair trade. >> some say that the u.k. now positions itself for the middle powers of trade. where the biggest opportunities you see? >> our ambition is to make sure we maintain openness and as the cptpp does, we are advancing in all of the areas of the economy that are really important to us, so it is great on things like e-commerce, digital, services, so it is really at the forefront. and we absolute we want to be a

part of that group. it is a really high standards arrangement. it suits the way we see ourselves in terms of trade policy, so it is very exciting. >> what is the real benefit to the economy? it accounts for 0.08% to gdp. how does it counter the 4% hit from brexit? >> the economy of the bloc is already at 9 trillion pounds, and the majority of global growth, the fastest global growth will be in this region. this is at the heart of what we are seeking to invest in in the future. it will have the majority of middle-class within the world as well, so some of the most exciting economies. our companies are really interested in expanding into this area even taking singapore alone. we have seen a growth of 4500

companies to 7000 companies here. i can see that continuing to grow in the most exciting sectors. >> negotiations were tough to say the least. concessions were made. some of criticized the u.k.'s position to reduce the import of tariffs when it comes to palm oil from malaysia. how do you respond to those criticisms? >> i would like to congratulate all of the negotiators. it is a tough job, and they have to check that every country that is joining will meet the high standards. for every country that is joining, it is absolutely in their natural interest to do so, and that is what our negotiators did and around the region. so i think where we have ended up offers much more for british business, fantastic access. with malaysia, we have not already got a free trade agreement. for malaysia exporting into the

ok, the u.k. exporting into malaysia, it is really good news. >> do you think the u.k. has set the standard for future members of cptpp, the likes of china? >> i think cptpp set its own standards. it is known by everybody to be a high standards agreement, and the founding members were absolutely right to test whether we met those standards. of course we did, because we are hey i standard economy. it is a fantastic that we are the first european member of this bloc. we are pleased that they were open to accepting us and negotiating with us for acceptance. we welcome the fact that it is an open agreement and the high standards. >> china is waiting to be a member. where does the u.k. stand on china's membership? >> it is all about the standards that is what the other countries were testing with us, and that is what we will be testing

within the economy. >> what role does the u.k. want to play within cptpp? what is -- >> what is exciting about this bloc is all of the countries are thinking hard about the continued trade policy and how can we win the benefits of good trade for our populations for job growth and continue to raise living standards? we constantly think about one of the next sectors? how do we need to work in the emerging sectors, and i think we have got rate, innovative capability both within our private sector, but also within our policy and regulation, and we are really excited about working with a bunch of countries that also feel the same way and have the same commitment to open trade. >> some are suggesting that u.k.'s membership shows it's been a bit away from europe, it's been a bit away from its reliance on europe toward this part of the world. is there a fair assessment?

>> one thing is how much we have been investing right across the board and this part of the world. you will see it but we do around defense, for example. our collaboration with japan on our next-generation fighter. you can see it in our diplomacy, and you can also see it and things like cptpp is a major plan for our investment. but it is a big world out there, and we have fantastic companies. what we should be seeking to do is grab the opportunities wherever they arise, and cptpp expands opportunities for u.k. companies in this region. also, it is a statement of our philosophy. without sounding greedy, i think is both and for us. >> ratification will take a couple of months, possibly a year? >> each country has to go

through its own ratification process. we are the first in, so each country has to go through that. each country has its own ratification process. it will take some time, but we are really looking forward to doing a huge amount of education with our companies in the meantime. >> thank you so much for your time today. there you have it. breaking with me on bloomberg. haidi: more trade is always a good thing. let's take a look at potentially out this could impact when we see the european session opening. this is the future session just coming online now. we are looking at modest upside when it comes to euro stoxx, dax futures up as much as .2 of 1%. we did see equities trimming out those monthly declines as banking fears started to

subside. we had positive comments from the ecb official as well as germany and spain plummeting and a boost in sentiment suggesting we could see more supportive policy measures from central banks in that region. we did see a 1% gain in it comes to stocks 600 and a banks continuing to extend the recovery. we will be watching to see if financials can continue that rally. tech stocks in europe doing quite well. this of course as we continue to watch for the sentiment improvement here in asia as well. stocks rising mildly as we saw u.s. tech shares driving of those results overnight. we are headed for a pretty positive asia session so far this friday. this is bloomberg. ♪

shery: here is a check of the latest business flash headlines. tesla is said to be looking to build a battery plant in the u.s. with china calt. tesla discuss plans with the world of house largest ev battery maker. we are told it wants to pursue a similar deal with ford, which are building a factory in michigan a wholly owned by the u.s. automaker. wells fargo has agreed to pay over $98 million in fines over allegations of five of the dubai sanctions wells. at lender provided a trade finance platform to a non-us bank everything's changing so quickly. before the xfinity 10g network, we didn't have internet that let us play all at once. every device? in every room? why are you up here? when i was your age, we couldn't stream a movie when the power went out. you're only a year older than me.

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haidi: we are getting breaking

news when it comes to the australian private sector credit numbers as we continue to start counting down to the rba meeting next week with expectations firming up of a hold. credit to business consumers rising 0.3% month on month and it comes to the your on your number. we are seeing a gain of 7.6% year on year. we start to see a bit of softening in inflation, it way above the inflation target for the rba, but some of that softening around the data around the periphery suggesting rate hikes are starting to take effect and we are starting to feel the pinch from businesses as well as consumers. that take up of private sector credit on a monthly basis softer than expectations and also pulling back from the previous month in january. the year on your number a little bit softer than the 8% we saw in the previous period.

let's take a look at how this is playing out as we get into the friday session in asia. annabelle: it has been pretty quiet today. we have the session for japan and korea, perhaps the highlight coming through has been the tokyo inflation data, a leading indicator for the national cpi. we did see it slowing further in the month of march, down to 3.2% , off the 3.3% in the year prior. that indicates perhaps those measures to assist with the impact of price pressures are having some effect, it is unlikely to shift the boj off its course and ueda when he starts his leadership term and a couple of weeks. how that is playing out across the markets, we do see the japanese yen weakening somewhat. if you look at that gmm function, japanese yen down around .5 of 1%. that is happening -- helping

japanese equities. they are the outperformer. japan is the best performer in the session today, but mostly across the board unchecked close markets. we aren't really range bound, and does to be a bit weighted. we are well off trading volumes in the session today. shery: we will be watching taiwanese markets in the open as well as we are getting pmi numbers. we are seeing it for the month of march coming in it 48.6, which means it is another month and contraction territory. it has been below the 50 threshold since june of last year. we have seen improvement in asian factory gauges. we are seeing another deceleration at 48.6, down from 49 in the previous month and another month or below the 50th threshold of expansion. we will be watching data in the u.s. as well.

that officials continue to stress the need to lower inflation ahead of key u.s. price numbers out friday even as they keep a close watch on the fallout from the collapse of silicon valley bank. let's get more without global economics and policy editor kathleen hays. when they decided on the rate, they did not have this number. now they do. >> can you imagine in a few weeks, what a change in how they are looking at policy, the economy. thanking stress as a whole kettle of fish nobody was looking for. that is why they are listening so closely to people like susan collins, president of the federal reserve bank of boston. she spoke today, and in her prepared remarks she noted the system is still strong. and they have got tools to do whatever they need to do, and inflation is still high, and there is still work to do. let's listen. >> i currently anticipate some

modest additional policy tightening and holding through the end of the year. of course, i will be carefully watching our range of indicators including data on inflation, spending, labor markets, and financial conditions. >> she said today very clearly she sees three more 25 basis point rate hikes this year, tighter lending standards which could lead to less lending from banks, and that could affect the economy, could a partially offset the need for this number of hikes. todd barker from the richmond fed is undecided on what to do. yes, inflation is too high. on the other hand, the banking stresses are gone. neel kashkari got the market's attention when he said it could lead to a credit crunch and says he also thinks inflation is too high and it is too soon to fully gauge the impact of the silicon valley bank driven crisis that

we have seen in the u.s. and that is stabilizing. neel kashkari talked about today and other remarks that core services inflation excluding housing has yet to slow. that is the report we get tomorrow. pce deflator is the main inflation gauge, and that is what we will be looking at very closely. haidi: there is more focus on the pce deflator that perhaps ever before this month. >> i had not thought about that, but i think there is, because it is such a crossroads. the fed did not have to think about this. all they had to think about is are we doing enough to bring down inflation. do we have to slow down, 50 or 25? the headline pce year-over-year is supposed to come in it 5.1% from 5.4% the previous month, and that is a bit of an improvement.

the super court, -- core, that is core services going up. that will be closely watched on wall street. shery: kathleen hays with the latest on what to expect from the fed and pce core deflator numbers. we are gearing more from the latest development on president trump's indictment. we're hearing from his lawyer that he could be arraigned as early as tuesday. we were waiting for the arraignment to happen in order to get more specific details of what the charges the former president will be facing our. in the coming days prosecutors working for the district attorney are expected to ask mr. trump to surrender, and that could happen as early as tuesday according to his lawyer. this of course related to specific charges to be announced when he is arraigned. let's get to su keenan for first

word headlines. su: u.s. banks have reduce their overall borrowings from two fed backstop lending facilities, a sign liquidity demand may be stabilizing. outstanding loans from the discount window fell to $88 billion last week from around $110 billion. the bank term lending program grew, leaving a combined outstanding amount of $153 billion. the european commission president ursula von der leyen warned of the bloc reducing risk from china and not decoupling. she gave a speech ensuring the amount of stability and open communication lines with beijing. she did add china must be a stance on russia's invasion in ukraine will be a determining factor interrelations. >> i believe it is neither

viable nor in europe's interest are decoupled from china. our relations are not black or white, and our response cannot be either. this is why we need to focus on derisk, not decoupling. su: the u.s. state department is requesting access to an american journalist detained in russia, this force buying accusations. the wall street journal's journalist is the first u.s. reporter held on spying charges since the cold war. he was caught red-handed collecting state secrets. u.s. secretary of state antony blinken says the u.s. condemns at the kremlin's attempted to intimidate journalists. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am su keenan. this is bloomberg. haidi: china's take ipo'ed train

appears to be on the move again. sources tell bloomberg alibaba's logistics arm ck hong kong listing, while rival jd.com as filed for ipos for two of its units. stephen engle is in hong kong. the baba researcher and kicking off a wave of new share sales and a lot more exuberance when it comes to these expectations are it -- expectations. >> there could be more companies. jd.com as a couple of units they have applied for hong kong listings. essentially, we have to look at this announcement earlier this week of the alibaba restructuring into six units, and the ceo and chairman saying they will have their own decision making on fundraising and ipo's. that indicates to me and many analysts that beijing as given the blessing to this breakup, but also to potentially a wave

of ipo's. the ipo market has been severely depressed over the last couple of years obviously with tech companies facing far more national and data security scrutiny ahead of the lifting's and the market -- in the market has not been good. it could lead to the strain leaving the station and heading to more ipo's. one of the six units volleyball but that will be separated out is likely to be the first want to go public on its own. it is probably the one business of the six that is ready now to standalone from the group alibaba. it is valued at a little more than 20 billion dollars. we do not know how much they will raise the size of the offering. the timing will depend on market conditions, but could come by the end of this year. shery: coming up next, i hong kong getting ready to allow retail trading as a consultation

period wraps up on friday. okx joining us for a discussion on their bid for a local license. this is bloomberg. ♪ m who make...? ...everyday products... ...designed smarter. like a smart coffee grinder - that orders fresh beans for you. oh, genius! for more breakthroughs like that... ...i need a breakthrough card... like ours! with 2.5% cash back on purchases of $5,000 or more... plus unlimited 2% cash back on all other purchases! and with greater spending potential, sam can keep making smart ideas... ...a brilliant reality! the new ink business premier card from chase for business. make more of what's yours.

shery: we are seeing gains in markets across asia following the lead higher on wall street when we saw u.s. stocks rising

and the nasdaq 100 entering further into bull market territory. tech stocks one of the sectors gaining and raw materials at leading the msci pacific asia region. we are following what is happening with the fed's preferred gauge of inflation and how investors will react as we get those numbers on the friday session in the u.s. haidi: a crypto exchange okx will apply for hong kong's asset service provider license under the new regulatory regime that could allow it to start offering retail trading from june. let's get out to hong kong where annabelle is standing by with a guest. annabelle: this is the end of the consultation period. let's discuss with the managing director at okx. this is staring down the barrel of virtual assets being allowed to be traded in hong kong. since the blueprint as been available, what is your initial

take on it? do you think hong kong has learned lessons from other jurisdictions? >> i think hong kong is quite well-prepared. they have a lot more understanding of our industry. more importantly, a majority component of the rules and policies are in an existing framework. a lot of requirements leveraging existing financial institutions. so i think it is quite comprehensive and robust. annabelle: is the chance that a response to the proposals, what did you indicate to the fcc that needed to change?

>> we are quite appreciative and agree. in some of the areas, we also have opinions and comments. i think for instance that we are a little bit concerned of the requirement related to the 1-1 ratio based on customer deposits. we need to have $100 in our own pocket. something similar into this contest, we will submit our own comments. annabelle: of course, a lot of the work was done prior to the blue print being released. it will be lobbing for at that point? >> we are having a lot of conversations with fsc directly.

we have been lobbying to discuss many areas for it -- areas. for instance, [indiscernible] the risk is still difficult to evaluate. what it will be allowed for retail versus institutional. annabelle: because that is quite narrow, the range of tokens that will be allowed? >> initially, yes. i think that is fair. it is a relatively new regime. annabelle: what about crypto derivatives, because that has not been allowed. the sec is open to it. what would be your take on that? >> my take is it is still too

soon. the framework from crypto right now, the data and real-life experience especially data trading. because we have a similar framework and security in terms of margin in hong kong. we are starting to extent even more. annabelle: do you think that the scope of the regime is broad enough that hong kong can truly become an international trading hub? >> hong kong is a major financial center and hub, and the fact that hong kong is willing to give a license, this already provides a huge

invitation not just for okx but for crypto as a whole. for crypto license, there is a little bit of exchange license given by security regulators. so i think it is actually quite unique. annabelle: on the point of regulators, because of course cryptocurrency trading is still banned in mainland china. at the u.s. is putting in a lot of prohibitory action through enforcement. do you see any chance the fsc will backtrack on these roles? >> all the government jurisdiction as the priority to protect their own residents and

citizens, so it makes sense for restrictions to be in a forest -- to be enforced. do you have an existing robust framework that currently regulated financial institutions and what works well already? what we need are crypto components. hong kong is having one of the best chances to actually regulate it and put crypto in a safe space which allows users to trade. annabelle: certainly a big time we are working toward an breaking news you have right now. shery: it seems we have breaking news at the moment. netflix is restructuring its film group to make fewer movies

each year and centralized decision-making. according to the company, netflix will combine units to produce small and midsize pictures, a change that will result in a handful of layoffs and the departure of two of its most experienced executives. we have more to come. this is bloomberg. ♪ online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year. that's decision tech. only from fidelity.

haidi: a quick check of the of this business flash headlines. nestle is among the final bidders to acquire capital foods. it has been discussing terms of a potential deal and any transaction would likely value the indian firm at more than $1 billion. talks have advanced, several other suitors are said to be interested in buying capital foods. the nation's second-largest developer and china posted $3.3 billion in annual profit. the earnings defied an industrywide property sub and underscore the divide between private forms and those with state-supported. the property growth was largely flat since 2022 after a drop of 46% a year earlier. alibaba's logistics arm is said to be gearing up for an initial public offering in hong kong. sources say banks are working

with network technology to prepare for the first timeshare sale. it is said that logistics arm is currently valued at more than 20 begin dollars. the move paves the way of the first of alibaba's express as soon as you go public. jd.com shares slid, then on property -- according to those filings, jd.com would hold more than 50% of both companies after the spinoffs. at the firm's it did not disclose fundraising amounts, evaluations, or surprises. sources say chinese regulators have met with vendors to discuss disposal of silicon valley bank's 50% holding in a local joint venture. we are told that some chinese lenders have indicated interest. the moves suggest beijing is wary of the potential impact of the svb collapse on the nation's $54 trillion of banking system. shery: a look at asian markets,

we are seeing brought upside with the nikkei leading those gains up 1% at the moment. this is a reversing loss as we saw in the previous session, and now at the highest level since march 10 earlier this month. this coming on the back of the japanese yen beginning against the u.s. dollar, headed toward the 134 level. we are at 133.50, as we are seeing the japanese yen recovering from the one week low against the u.s. dollar. dollar-yen of volatility is continuing to rise ahead of the april boj meeting. we are watching what the new governor will do in japan and when it comes to monetary policy. we have seen data out of japan, including industrial output eating expectations and rising 4.5% month on month. retail sales coming in stronger-than-expected, but the jobless rate has underperformed and risen to 2.6% for the month

of february. look at u.s. futures at the moment, we are seeing more upside than we saw earlier in the day. this coming off the back of the s&p 500 gaining ground and nasdaq 100 further entering bull market territory. tech stocks and real estate or some of the big gainers in today's session. coming up, we will be reading china las vegas pmi analysis, plus an exclusive with our guest about how the global banking turmoil test the bond markets. " bloomberg markets: china open" is next. this is bloomberg. ♪

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