food security. we know that for every dollar that we invest in marine research that produces economic output and more jobs so it is a triple win marine climate and the economy. that is the goal, the mission. >> good morning and welcome to

daybreak australia. annabelle: we're counting down to asia's major market shery: opens. the top stories this hour. u.s. stocks are shaking off years following the latest jobs report, the dollar climbs, the yen retreats. haidi: global central bankers and business leaders are gathering in d.c.. shery: in washington, they say the u.s. is not sinking to seeking to decouple from china. newest features are coming online, we are already mixed in the session with the dow

managing to marginally close higher but the nasdaq gauges were under pressure, we had three weeks of gains for tech stocks, another rate hike given strong job numbers but reports showing apple saw the worst shipments of pc's since 2000. offsetting that is the philadelphia semiconductor index gained grounds. it makes you question the global demand picture. we will get a better gauge of banking sector earnings, you can see the yield hovering around the 4% level, suffice to say the expectations are continuing to hike rates, with a strong dollar, pressure on wti which

sounds like -- annabelle: exasperating moves we have in the yen, it was the worst performance on monday, we had the first policy address, let's take a look at the equities picture. meanwhile, with really interesting risk even assets pushing back above the 2000 level, it coin approaching the 30,000 level, strategist are saying investors are so focused on the outlook for rate hikes, the strong u.s. jobs report.

shery: two biggest economies need to be able to collaborate. >> we have to be able to or together. the summit in bali charged teams to work together, they say the world expects us to work together on challenges, we will have to be able to communicate with chinese counterparts and we have seen this then we have had

continued contacts at staff and my level. we're working with the chinese on important issues. i think it's important the u.s. is not seeking to decouple from china or limit china's growth. those are not our strategic objectives. we are not trying to we are not in any way trying to separate these economies.

shery: these exercises were similar in scale to the response to last year's visit by nancy pelosi. what the receipt with the u.s. house speaker kevin mccarthy? >> it's obvious to expected beijing's perspective would have to show some sort of displeasure similar to what happened last year after nancy pelosi's visit to taiwan where there were military drills concluded yesterday, there were some 91 aircraft surrounding the island yesterday has at 6:00 p.m., warplanes crossing the median line in taiwan. if you want my take on this,

china and the united states tamps down the volatile rhetoric before they went to california. not to inflame tensions worse. playing some display of force to show they are displeased separately, we know that emmanuel macron had just come

back from beijing where he met with xi jinping, it's interesting because joseph wu spoke to bloomberg news in an interview, he said of these two french lawmaker will be going to taiwan to talk about setting conductors and economic issues. we're hearing another french lawmaker will go as early as this week. macron had some interesting comments to french media and said the worst thing would be to think that we europeans must become followers on the topic. again, the french president looking to play a middle road between china and the united states.

shery: as we mentioned, throwing cold water on expectations. >> given the current situation, i don't think it's necessary to reconsider discussions with the government. it changes significantly. >> kathleen hays joins us now with a bit more on what we have heard from the inaugural news conference what will we not change, at least immediately? >> let's start with what was expected. we know governor kuroda made the unexpected tweak to widen the

yield control band. so many thought that meant the door was wide open. take them further. he said exactly what he wanted everyone to hear right now. keeping an eye on the bond market given the current economic price and financial conditions, i think it's appropriate to keep up the yield curve control. he could not be the fact that he

between the bank of japan back in 2013. the need to review the accord after a new government is in place. they wonder why it's not time to do that yet. back in february, he noted he needs to make the right policy call within you magic monetary policy. we are watching the risk of global recession, we hope we

will learn more at the end of the month. >> a sign of warming relations becomes despite. the pentagon says a recent document league poses a serious risk to national security. chris meagher says the military is trying to figure out the scope and scale of the league.

it includes details of u.s. spying on other countries. this is the first am since october 2021 military lines or liaison calls have been stopped for more than a day. four people were killed after an employee open fire in kentucky. the attacker was killed in an exchange of fire with police. it's the 15th mass killing this year. it comes just two weeks after a number of people were killed in tennessee.

global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. shery: a rate hike after slower inflation, power interview with the central bank governors next.

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>> despite the resilience global growth will remain below 3% as we rejected earlier. much more concerning. it will remain around 3% for the next five years. >> the imf managing director has spring meetings kicking off this week. get to kathleen hays. >> he is eager and happy to join us, the philippines central bank

is very to see. i want to start on headline versus core inflation. year-over-year slowed a good amount. it is still way too high. the core rate is climbing. what does that mean for your next meeting? >> the other thing to look at his month on month. when you are you are near, there is way too much information. when you look at that, the march price index is slightly lower than you january price index. you will have to receive what

happened, and food prices. the prices still high, they need to move down. from one month to the next. the target should be three divided by 12. it's not consistent except for a few products.

>> is that the move you not just hope to be able to make more is likely to say you are not watching big year-over-year numbers but monthly numbers that was negative? >> what contributed to that was high interest rates. 2.5% since january. if the numbers in april, two birds don't make a spring.

if april is consistent, maybe it is time to pause. we are not as worried. numbers are surprisingly high. that is not enough to a limited excess demand. haidi: a lot of the outlook has

been made murky in terms of the global banking crisis. i'm curious how you feel about philippine banks? >> is -- the answer is no. thank management is very strong. we don't have the things in the united states, coming from zero. type policy rates is not a concern in the philippines. >> i want to ask you about rates.

are you getting to your terminal rate? >> if the april print is consistent with february and march, it's hard to speak too soon. the 74. -- you celebrate too early, the ball was stolen. >> we have seen that in u.s. march madness. in terms of when you get to the pause, while central banks are asking if you will keep the rate high for a considerable period of time? >> there will be a pause, then an observation point.

we don't want to confuse the markets. that leaves this time. >> it's a big focus in many countries. are you comfortable with the recent moves against the dollar? >> government securities markets and the inverted yield curve.

the economy would be weaker. we are importing very heavily. it's quite bad for exports. >> are you expecting rate cuts to operate with a lag? you are one of the most unfortunate countries in that regard. aggressive rate, china's reopening is going slowly. this is a major trading partner. >> this year, we expect.

>> another question, your inflation is right there. >>, scenario's by the speed of decline will be very fast. by november of this year, as you know, high inflation -- it will

be an honor to serve. >> we always loving -- love having you on bloomberg television. we are waiting to see what happens. thank you so much for taking the time. it's a busy week. >> it is always a pleasure. >> thank you so much. the philippines central bank governor. sending it back to you, always interesting. shery: great conversation. we will have more throughout the

week. key leaders during the imf spring coverage. i'll be joining conversations including with governors of central banks. take a look at how currencies are trading. strengthen the dollar, we see expectations of rate hikes with the fed given the strong jobs numbers, the yen has been weaker. i screwed up. mhm. i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too. yeah! work it girl! woo! i want to hear you say it out loud.

well, i could switch us to xfinity. those smiles. that's why i do what i do. shery: investors have shrugged that and the paycheck.

off fears of another rate hike.

focusing on the wrong things? annabelle: this outlook for central banks and bank of america says perhaps we are focusing on the wrong things, when instead we should be trimming u.s. equity allocations and that is because we need to focus on the outlook for recession and the impact it's having on stock markets. and we should note michael hartnett was successfully bearish and the sake a look at -- bank earnings are coming up, j.p. morgan is one of the most

closely tracked given j.p. morgan is the only ceo since 2008, there is an advisor at first republic bank. haidi: of course, inflation later out of the u.s. is being closely watched. what are we watching? >> we are being quite stubborn in the rates area in core services. they are continuing to rise. this is one of the most closely charter reports. one of them is speaking at an event. it was asked about rates and he is leaning for another hike, he said the bet or communication

between the bond markets is a rate cut. take a listen. >> do i worry if market expectations expect us to lower interest rates significantly next year? my answer is i don't really worry. inflation will come down much faster, to me, that is not something we need to worry about. haidi: our next guest says u.s. markets are reacting to fed decisions like it was a previous era. she thinks this time is fundamentally different. we know and economic conditions that were the precursor to the tightening cycle were fundamentally different and quite structural, is that what

you mean when it comes to a misunderstanding of where you go from here? >> we have had four cycles over the last 30 years, and this one is the most comparable to the one we saw in the early 1990's, if you think about the differences we are experiencing now, the types of dynamics happening globally now, they're quite dramatic. that was when the rate hiking cycle started in 1993, we're in a. of globalization when baby boomers were in their primes, and all of the rate cutting cycles in recent memory have been in a period where we generally had low inflation, so we are now hiking in the period where the fed allowed inflation

to get out of control. the idea that the fed will be cutting in early fall as a misunderstanding of the message and it's unlikely to happen. that is the other thing i would say. when a pause is not a rate cut, lasted for 14 months. the idea that it's over and done with i think, i am a little skeptical. haidi: how do you play on that skepticism? >> we like money market of 4.8%, we think u.s. stocks are richly priced, especially u.s. large-cap stocks.

we like parts of the bond market, and generally we like value and quality. cash flows that will hold up well in a. where we will find inflation remains sticky at around 4%. >> emission value and quality. is that the call given it is such a diverse space, and at the same time, what do you think about the nasdaq and tech stocks which have seen an immense run-up? >> the nasdaq 100 is up over 20% , i would consider and high quality tech which is a well-run

company has become something of a safe haven, it's not almost 8% of the s&p 500. if we see a downturn in fallen tech stocks, that would be a real headwind for the nasdaq. shery: where do you find quality in emerging markets? >> in emerging markets, i would say the imf expects china and india or asia in general to comprise over 50% of global growth this year, we like india, gdp is outpacing china and they don't have some governmental issues that china will continue to have despite reopening. i think there is some quality to be found in parts of emerging markets, especially asia and india.

shery: if we look at reopening and indian consumption coming back to levels before the pandemic, does that mean we will see the battle in prices rising, especially with oil? i think china's reopening will continue to put pressure on energy prices, particularly oil. that will be and inflationary force. we have not seen the full impact of this yet. the timing. shery: it was good to have you. let's get to the first word news. >> the bank of japan says

policies are sticking around for now. the use of yield curve control and negative interest rates i with the economy needs in the moment. he said he is open to a long-term standpoint which will meet the approval of other board members. >> given the current situation, i don't tickets necessary there is still conversations if the economy. >> the chinese military growth is on par with the reaction last year after the predecessor visited this island. the intensity of the threat was similar to what they saw after

nancy pelosi's visit. the u.s. treasury top international official says the country is not seeking to decouple from china, the secretary says the world's two biggest economies need to be able to collaborate, the imf warned that tensions drive geopolitical fragmentation and risk damaging the global economy. >> the global economy charged their teams to communicate and work together, and in particular so they said, the world expects us to be able to work together on some of these challenges whether it's climate, debt, or things like that. >> a former jp morgan executive failed to settle cases.

in u.s. district judge said -- did not want a severance. the judge did grant him dated -- did grant him discovery including witness depositions. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is numbered. shery: coming up, and managing director joins us next to discuss carry trade's across emfx. be sure to tune into bloomberg radio and tear more -- hear more from the daybreak team. we are broadcasting live from our studio in hong kong. much more ahead. this is bloomberg. ♪

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comes to a deal, we are hearing there is a revised proposal to the tune of $32 per share. have agreed to grant due diligence, the process will begin and you pressed will pay a

special dividend in the deal, we understand newmont had been given partial access last month to the corporate books of the australian rival, according to people familiar, we had an indication the u.s. country would be making a revised offer, the world's largest gold takeover. we are expecting due diligence to grant due diligence access under the offer, the nonbinding propose that has been made. this was after we saw a dismissal of the $17 billion proposal which is the world's top gold producer and that was rebuffed back in mid february saying new crest is worth a lot more. we are watching out for this in terms of how this plays into the

market open and whether this goes ahead with due diligence now, getting confirmation. shery: we saw the market reacting to the u.s. economy, peaking global interest rates as well. that's been setting the stage for investors to revive so-called carry trade's in emerging markets, that strategy of borrowing that offer highroad -- higher yields and you can see this in the chart with the imf predicting american economies will be a bright spot even as the u.s. slows, ingredients could be in place for the first time in years. let's bring in a managing director, marcus wong. it seems a banking turmoil has

helped reignite the strategy. investors have been lured into this since last year. returns since march, investors have been looking for cuts since the end of this year. fx volatility has been easing the carry trade. if you look at the bloomberg index, so far this year, years of losses. shery: when it comes to bem carry trade's, part of the equation is perhaps a slowdown. how do emf returns perform in

that environment? >> the question is what kind of slow down. if we are talking about a sharper session, this is a trade that is correlated for risk appetite. that will make the trade network so much and will actually take you into losses. if we get a mild recession, we can argue a soft landing altogether because we are not going below neutral. we have gotten a taste of that in march, we got a bit of a shake in markets but most have close the gap. there is resilience into mild shakes. haidi: how compelling is that

china reopening story? >> most of the carry trade is concentrated in areas where you have the secondary effect which is a demand for commodities. and maximum of 6, 6 .5% compared to 7% to 13% from poland to hungary. we talked about double digits, 12%, 13% for brazil. these countries are big producers of commodities. chinese reopening, global growth means potential for commodities to stay at relatively high prices. there is an inflationary effective that which is the part to gives -- makes central banks

hawkish. there is hyperinflation in the past and transmission channel where you don't really have that much of an effect of an economy. the leg is slower so there is higher commitment to hide interest rates. haidi: what are some of the most remarkable trades? >> there are quite a few. especially the china reopening story is the effect where there is a commodity boom. last week has brought me about the government with the new

fiscal framework to aim for budgetary restraints. this is boosted optimism, traders have cut shots as a result. another is one of the highest em carries, inflationary pressures should keep the central banks hawkish as a result. shery: what are some of the most attractive trades at the moment? >> this is the lower yield, so this is been very resilient over the past month, but from the

general perspective, all your long, active managements you need to be on top of trades and set up stocks. if you look back at the episodes of the em carry trade, they stop pretty fast. for that, you need to be fairly disciplined into predicting those gains. carrying brazil, carrie and mexico may be more affected by u.s. recession risks that have been causing more of a shake, columbia, 13% interest rates are starting to look better. it prevents me from being as constructive about hungary where they have high inflation.

some of these countries have not had a material inflation cycle. you are seeing that materializing in latin america. haidi: when it comes to risks, how much is it political? >> we have pointed back at five recent episodes in research of dollar movements, and the average in general is to weaken ahead of the debt ceiling but to strengthen out of this. this is the case against the market currencies it is something we are putting in the calendar as a potential risk. shery: you have to have a strong stomach. also, thanks to bloomberg, terminal users can get more on what is happening in emerging

markets as your function. we have plenty of guests in the em space coming up this week including central bank governors of south africa and columbia as well. this is bloomberg. ♪

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latest business flash headlines. computer shipments have fallen, marking the worst drop since the year 2000. automakers slumped to 56 million units. they say the demand search has evaporated. alibaba is the latest challenger to chat gpt. the company called -- ceo showed a live demonstration and when prompted by questions as well as writing email and scripting computer codes. the open ai cofounder said they are looking at a japan office and expanding japanese language

services. the brand follows a meeting with the prime minister who discussed the ai potential about the downsides. tsmc missed sales estimates. it fell short of average estimates. the company says a slowdown contributed to sales down 15% compared to last year. that is it for daybreak australia. daybreak asia is next. this is bloomberg. ♪

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>> you