david: happy friday. you are watching "daybreak: asia," coming to you live from sydney and hong kong. haidi: we are counting down to asia's major market opens. >> asia stocks have suffered following a well-stocked -- wall street rally -- asia stocks are set for gains following a rally on wall street. haidi: we do have banking news when it comes to central bank decisions. the central bank of peru leaving reference rates on hold at 7.70 5%. this as we see fresh shops to the growth prospects for the peruvian economy. we are now seeing the peru central bank leaving rates on hold as we have seen flood

damage from heavy rains recently hitting an economy that was already, as we know, reeling from the impact of mass social unrest. they expect inflation to be back within target by the end of the year. we are waiting for potentially some new commentary when it comes to inflation expectations, but this will be a third straight month we have seen the peru central bank keeping its policy rate on hold. it had to hold its steepest ever series of rate hikes in february. david: i think the slope of many of the lines on that graphic tells you the story of where markets and investors hope, and if that continues this pause across some, but not all of it, still. we are consolidating after those gains, still poised for gains. the other part we want to talk about is going ahead to retail

sales in the u.s. you have earnings, bank earnings the big one later on in the evening. we are looking at crude right now. energy prices up for a fourth week. gold as well. we can talk about gold later on. let's get the u.s. dollar cup. overnight and into where we are this friday, perhaps this goldilocks spot we provided for risk assets. you have the bloomberg dollar index and the dollar index itself, so we are essentially a 12-month lows boosting futures ahead of the opening bell in this part of the world. >> this will help the momentum of asian stocks. with the weaker dollar that came through, we saw the euro hitting its highest in about a year. also the pound touching its year-to-date high as well as the gains we had in the commodity link currencies, the kiwi among this. we are still seeing downside

shift in the economy in is england. pmi, for instance, the last half-hour or so deteriorating, and some in the market saying that inflation will take a lot longer to be slayed in that country. as you said, when you have that weaker dollar, we are seeing the outlook for australia and japan looking high here. china, of course, a key market to watch. we had those moves in the golden dragon index overnight. we did see that recovery from the prior drop, and a lot of analysts say that selling pressure we saw on tencent, alibaba, that is going to dissipate because the fundamentals of those companies are looking strong. a lot of investors in the market looking to china to help prop up the global economy. david: absolutely. the imf that it including china, including india, so those economies will be driving half of global growth this year as

many global economies and regions like the u.s. and also you are facing to some extent various levels of recession -- listen, recession, it is friday. our global economics and policy editor is with us in washington. what did the imf say exactly? kathleen: i think it is interesting that they went out of their way. on the world economic outlook, always out on tuesday during the spring meetings of the international monetary fund was out, and it showed the bright light for growth this year is definitely asia. this is a blog from the imf asia director, and he points out that they see the asia pacific area up 4.6%, the gdp this year. it was considerably better than 3.8% in 2022, and not only do india and china together

contribute more than half the growth, and a lot of that is due to china's reopening. that is the biggest driver at this point. the imf can see it making a very big contribution, and again, overall, the apac region is going to contribute 70% of global growth this year. how about that? there is a warning about financial stress, but the asian central banks, as the governor for asian central banks, told me this week asian banks are in good shape because they learned their lesson during the 1997-1998 financial crisis. let's take a look at new zealand, small but influential in many ways. i did speak to the finance minister earlier today, and he said that his big concern for their growth is international economic uncertainty.

let's listen. >> clearly there's a lot of different conversations going around here, but for big picture issues like climate change but also geopolitical issues, so for me, that always remains the biggest risk to new zealand. it is important for me that we diversify our economy, that we make sure we are selling more goods to different places, that we develop in the services sector, we do all those things, but ultimately, this international environment will dictate a lot of what happens for new zealand, so that is my number one risk. kathleen: that is his number one risk because the economy has slowed down. it was slightly negative in the fourth quarter. i asked if it could be negative again in the first quarter, maybe in a mart was session already. he said yes, but overall, he sees solid fundamentals. in fact, he supports the rate hikes. he gives them all the leeway they need to go ahead and do it. he said he was heartened in their last policy statement after the surprise 50 basis

point rate hike instead of 25, to say they were talking about maintaining the level of interest rates. some might say they left the door open, but supportive and no complaint about what the rbnz has done thus far. haidi: the bank of korea governor says the turmoil-engulf european and u.s. bank has had a real effect on local lenders, speaking exclusively to shery ahn earlier. he said authorities remain on alert for how that could affect investor sentiment. >> it has not affected us very much directly because our exposure to the silicon valley bank was quite limited. on the other hand, we are concerned if it will be well contained. so far it looks good. >> speaking of the banks, bloomberg intelligence is looking at lenders avoiding the

debt market in the wake of the shock of credit suisse. this is we are also on the watch for the largest u.s. lender begetting the broader earnings season on friday. there is still quite a bit of jitters, suggesting that perhaps markets will remain frozen somewhat longer. >> there is that element, the sense of how investors are really pricing this market, given everything that happened with credit suisse, of course, but there are indications that there's still some appetite there. for exam, let's look at japan, pressing ahead with marketing. that is one to watch in terms of what pricing is, what investors are building in now that the market seems to have significantly changed, given what happened with credit suisse holders. so there's that. also looking ahead to june, there is unicredit and if they

exercise the right to kind of call that upon, sues a couple of things on the horizon that will give people a little more information about how this market is developing after the fallout we have seen in recent weeks, but of course, still many indications that the market is struggling quite significantly, of course. david: that premium really has not gone away completely. out of your point, we are four weeks removed from part of this. several things are coming up. take your pick what is most important. u.s. bank earnings coming out. obviously some data coming out of the fed discount window, what have you. what is top of mind for you as well today? >> it has to be u.s. banks, and of course, jp morgan being the main one. really, there is a host of things we are looking for. diamond -- dimon's commentary will be interesting around what he is seeing in the way the

customer behavior is pertaining to the slowdown in the global economy and u.s. economy. that will be particularly noteworthy, but more specifically in the area of deposits interruptions we have seen in a lot of these fixed income holdings in the regional lenders recently, how that is playing out for the big end of town and if jp morgan and other big lenders have kind of benefited in any way, has the expectations for the pullback in deposits, albeit a reasonably sizable on its own -- is it significant enough to warrant a significant change in customer behavior? of course, some money has been coming back into deposit-type instruments. bonds have gone a bit back in some ways because of what is happening with a potential fed pivot and move to cuts later on in the year, so i think they are the kind of things you want to be looking for in the bank

earnings later in the new york morning. david: fantastic. thank you. to adam's point, lots has changed since about four weeks ago. particularly this period of panic, as you -- if you will, has eased somewhat if you look at the discount window, which we talked about. a spike in mid-march and since then, we have gone lower. we obviously have not quite normalized just yet. we will wait to see what the banks say, the big banks, really how everything that has happened affects how they now view their funding. haidi: yeah, so much to look out for. even as we think of friday's bank earnings, looking at everything that happened in the rearview mirror, but i like to glean, particularly when you look at the deposit situation. let's look at some of the first word headlines this hour. the fbi has arrested a 21-year-old international guardsmen for the leak of classified documents, which have

details on the war in ukraine. attorney general merrick garland said jack teixeira will be charged with the unauthorized removal, transition, and transmission of national defense information. "the new york times" has reported that he was the leader of a gaming chat room where the documents first appeared the strongest cyclone to hit western australia in more than decade has made landfall and is having a major impact on economic producers. world bank president david malpass says that relief relies on china's cooperation. he says there has been some cooperation with beijing softening its stance on multinational lenders, taking losses along with other creditors. china is the biggest bilateral lender to corporations, 15% of

which are already in distress. >> they are burdened by high levels of debt, so the proof is in the pudding. the details of -- is zambia going to get an mou? we would like to see one this week. they must be willing to sign off on the structure of restructuring. >> and those were your first word headlines. david: lots of big conversations coming up in the next hour or two. mike milken joins us give or take about 30 minutes from now, so stay tuned for that. we are discussing everything from risks in the banking set assessed -- in the banking sector as well as he will share his assessment of the health of the banking industry. patch those interviews coming up here on bloomberg tv. this is bloomberg.

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>> we still have tightening labor markets, consumption spending is holding up. the balance of risks are squarely to the downside. >> china is a very important

trading partner and economic partner. it is a very important creditor to low income countries. >> there's a lot of different conversations going around here. broke for big picture issues like climate change but also geopolitical issues. for me, that always remains the biggest risk to new zealand. >> the sooner they address imbalances, the better it will be later. >> am confident we will get inflation back to where it needs to be, but it is a project and task we all need to play our part in. >> our guests speaking to bloomberg tv on the sidelines of the spring meetings in washington, d.c., at the imf. the chief of strategy and portfolio manager joins us now. great to have you with us. so much of this, it feels like investors are at a bit of a weird crossroads at the moment because so much depends on what

the central banks hold or will continue to hold, in the case of the fed, what the trajectory goes to from here. what are you watching? >> biggest thing we are watching us two narratives. one is there is a pause. there's a chance for reprieve, a chance for a soft landing which may have later applications later in the year if inflation is tolerated. the other is that they actually really do continue to fight, continue to raise rates, which in the shorter term is going to be more disruptive. i would say we are seeing that in both fixed income being still short in some markets, not a straley, but we are seeing some short signals across the board in the u.s. and europe, but short signals and bonds are launching those, and stocks kind of show that there is a mixed narrative. haidi: how do you balance that uncertainty when you look at how you structure your portfolio? >> for us, it is really about risk, about how much movement we have seen in the different

markets we are following and looking at the technical signals to understand where the market is moving. what we have seen has -- to be honest with you, there was such a huge shock in march that i think technical models and quantitative signals are still sorting through the rummage of what we saw last month, and you are starting to see the narrative of the fed might pause. we are going to have a little reprieve and tolerate inflation, but hopefully, it will come down , be a narrative the market is liking, but then this peddles back from time to time with this idea that inflation has to go down for things to improve, so i think that is where people -- markets are definitely back and forth these days. david: i'm curious. can you give us one specific leading indicator for technical signal, since you mentioned you are watching closely? >> i think the biggest thing we saw was we saw signals in fixed income had been persistently

short for almost 15 months. we had been looking for months for the bottom of the bond market, and we started to see some indication last month that there was trouble for this particular bear market trend, but on the other hand, what we are seeing now is -- is this going to be something that moves into the long end of the curve? and we are looking more at long-term bonds to understand if we might see a steepener, which could be difficult for long-term bonds going forward. david: what does that mean for the dollar, which has been cascading lower, and what does it tell you when equity markets cannot gain momentum amidst what is really -- i mean, in most cases, an environment where they should find a weak dollar? >> in many cases, you have to realize that the dollar was so strong last year that it had to come down. it was a relative position that was so strong that it has come back from where extremely high

levels, very rarely, that we see, so you have that effect, and you have the fact that the u.s. was being a little bit firmer in policy, which also made the dollar look better, so a lot of different factors that had tended to make the dollar and yields highly correlated, take away tightening, take away some of the themes where the u.s. is looking ahead, and suddenly, you have a situation where the dollar correlation has changed completely, so statistically, we are seeing very different correlations this year with the dollar and stocks -- we are actually seeing stocks down and the dollar up or the exact opposite of what we saw last year. i think that puts into question the u.s. dollar as a safe haven type of currency, and people are starting to question that a little bit, what is the role of the dollar going forward. david: a bit out of whack, some of these collations as you point out. bank earnings are coming up today.

a lot of what we are hearing from the sale side and equity side of things, are telling us the u.s. equity market is not cheap enough. what do you think? >> i would say if we do see a pause shorter term, we are going to see a little bit of relief in equity market, so i would say positive short-term, but it is much more concerning long-term in terms of how inflation -- if we are not really going to fight inflation right away, the revocations of that may mean we lose the bond market first, and then we start to see some of that leak into equity markets in the second half of the year, so i would say it looks pretty ok for now, but what are the long-term ramifications for equity markets, i think, is what people need to think more. earnings will just be a preliminary signal if things look good in the short term. david: as always, thank you so much. have a great rest of your evening and have a great again. chief research strategist pm at

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haidi: all right, and of course, there's a lot of questions when it comes to if we have sufficiently priced in an earnings recession when it comes to u.s., when it comes to other markets as well. i don't know if you have necessarily the answer to that. we have seen bfa making it's called ac when it comes to 20 23 earnings going from bad to worse

-- making it's called when it comes to 2023 earnings going from bad to worse. david: the guys at b of a are telling a cps should be about -- i'm not sure what metric they are using, but when you look at where we are right now, we are not there just yet on projected eps. to your point, a lot of this -- here is the chart. we are looking at two to six -- 226, i think 220 is what they are saying, but again, if we are going into a recession, this might not look cheap enough, but if the fed stops hiking rates and your risk-free rate falls, the value of this market becomes cheaper. i think the big question, you know, what is the key assumption you're making to really inform

you of how heavy you go on this equity market right now, which looks a little bit expensive by most metrics still. haidi: yeah, and looking at the breakdown in terms of what be of a is liking versus tech and what they are really focused on, saying they could see a y2k-like aftermath -- that is not some good -- and of course, also looking at financial services companies, which is a big -- y2k, i have not thought of that term for quite some time -- it does not sound like it bodes well. it is a throwback. david: we can keep that in the past. coming up, let's look ahead. c(jennifer)let's look ahead. kthe reason why golo customers have such long term success is because we focus on real foods in the right balance so you get the results you want. when i tell people how easy it was for me to lose weight on golo, they don't believe me. they don't believe i can eat real food and lose this much weight. the release supplement makes losing weight easy. release sets you up for successful weight loss

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annabelle: you are watching

"daybreak: asia." here we are 30 minutes away from the opens in the pen, korea, and australia. the really big focus is that softer than expected inflation data that came through. also the jobs numbers that came through the u.s. overnight. these are just supportive factors for asian equities. it really does come down to the effects of aggressive fed tightening, and that is something we have been watching very closely in the wall street anchor earnings as the next big catalyst for markets. jp morgan, wells fargo, the -- and citi among those who will be reporting friday. that really takes us to another big focus point for asian stocks in the week ahead. we are going to have a japanese life insurers laying out their investment strategies for the coming 12 months because the fiscal year has just kicked off in japan. what is really important to note is that japanese life insurers are a really significant part of the local investor base, so what

they are planning has big ramifications for domestic and also for foreign markets because they are going to show us how these names are positioning for any sort of shift. you can see in that shot prior that you can get better returns in japan from the bond then you can get in for names, but this one here also looking at their as a basis, and that really does show that impact of that shift we saw over the last fiscal year from foreign securities back into those japanese government bonds, something that could just be exacerbated and has impact not just locally but as far away as the u.s. and even brazil. haidi: we are also watching bank of japan. it is still uncertain if the central bank's current policy is tight enough. >> we are expecting our

inflation rate to go down near the end of the year, and we want to be assured if our expectation is correct. as long as we are assured protection is on track, then we will think about when we will change your stance, but it is still too premature to be certain. >> you said premature several times before. do you think markets are finally getting the message? >> no, actually, but it is not our problem. the united states and many other countries like canada and australia who also paused interest rates, the same thing happened in korea. our investors and market participants think that our position and our interest rate will fall within a year, but i gave a warning, but still there expectation -- their expect tatian is ahead of ours.

>> is that also because you are perhaps worried about the weakness of the korean won, now the worst performer in asia? >> i'm not concerned. what we are worried about is more like the future of oil prices, if opec-plus decides to cut production, if it will increase oil prices down the road or not, and then also, we also have to reassure what will be the monetary policy in the united states after it stabilizes, and how much the house will raise interest rates. overall, this uncertainty is deserved. it is hard to focus what we are going to do. >> even with the shock announcement from opec-plus that they will reduce production, we have not necessarily seen that spike in oil prices, not now,

and it seems even china's reopening has not brought that inflationary way we are expecting, so why are you so guarded against a potential spike in prices? >> i think first of all you are right. there are two views. there may be an increase in global price along the current economy. but this uncertainty, our concern is once we have paused, if inflation is not going down, we have to recalibrate our policies. i want to give a message that will ensure our policy will go down as quickly as we on the market are expecting. they may be, but maybe not, so i want to give a warning that we have to see more data. >> it is like you are trying to get ammunition in order to have to fight potentially inflation in the future.

a 3.5% interest rate -- is that enough ammunition? >> i think we are in a restricted area. we have raised our rate in the last one and a half years, so it is a good time for us to assess what kind of impact we do have. that's one of the reasons why i paused, but on the other hand, i do not want to give a message that this level is restrictive enough to automatically reduce inflation. david: that was the bank of korea boss speaking exclusively with our coanchor, shery ahn. let's continue the conversation around central banks. let's get to first word headlines and talk about what the imf is saying, that they are looking to china, looking to india, together will account for about half of global growth this year. the fund is forecasting growth in the asia-pacific region of

four point 6% in 2023 and really contributing over 70% of global growth. it is director of asia and pacific says china's recovery is lifting activity around the region and says it sees the biggest impact coming from demand for consumption goods. brazil's president is calling on bricks nations to come up with an alternative currency to replace the dollar in foreign trade. this supports china's crusade against what it sees as global dominance from the u.s. lula is meeting chinese president xi jinping friday. brazil and china earlier took steps to make it easier to settle their foreign trade operations. chile's central bank president dismissed early rate cuts in an interview on bloomberg tv. her comments, even as the central bank president recognized the highest borrowing cost in more than two decades were set to slow stubborn core

inflation. chile is among the first economies in the region to tighten policy as the pandemic started to wind down. >> we are passed a period when the markets were extraordinarily bullish. we are hoping to come out of this global inflation process without any recession or with only a moderate recession. markets were than experiencing this optimistic atmosphere, and suddenly, we have these events in the american banking system that are quickly contained that generate a disruption and a change in the environment. david: those were your first word headlines. haidi: of course, we are watching u.s. banks reduce their borrowings for a fourth straight week as liquidity constraints continue to ease following the collapse of silicon valley bank last month. let's bring on our markets coanchor who is standing by with our next guest. haslinda: as a financier, are your next guest revolutionized

modern capital markets by pricing and rewarding risk more efficiently. he joins us now. mike milken, chairman of the milken institute. thank you for joining us. we know you rarely speak about the financial sector these days. svb still front and center. some say perhaps the crisis is over for now, but the likes of jamie dimon say we will see the impact in years to come. how are you assessing it? >> if we look at this over a period of decades, what we have seen again is the movement to where people have borrowed overnight and lended long, and they have forgotten that one of the greatest risks over the years is the risk of interest rate risk, and so as you look back, if it was in the 1960's, 1970's, 1980's, 1990's, the first part of this century, you will see constantly that companies and many financial

institutions have mismatched their overnight borrowing against lending long, and that is what occurred again, and the largest losses that generally occur over this period of time are losses where you did not think were taking any risk or you had bought what is often referred to as riskless securities. so it is unfortunate again that this lesson has to be relearned it appears every decade. haslinda: some are bracing for a credit crunch, but overnight, we heard from janet yellen, who says no evidence of that yet. might we still see that play out? >> i would say it takes quite a long time to adjust. if you look and we make an analogy to medical, if you have

been diagnosed with a serious medical problem, it takes a while to adjust how you're going to deal with it, etc., md rising interest rates -- and the rise in interest rates, the longer we stay in a stabilized state, the more they will adjust to it. i see the market has adjusted greatly, and as we look at the portfolios that people take today, i'm sure they are attempting to adjust the maturities of their portfolios. haslinda: but if we were to see a credit crunch, where in the economy will we see that? >> i think you have to say where in the world are you seeing a credit crunch? the 1974 period of time

essentially turned the united states where the united states has been funded by public and private markets increasingly over the past five decades, so those countries where you are so dependent on the banking system, it is different, but public and private markets have been financing the united states and companies and countries in -- around the world now for decades, so the banks hold a much lower percentage of loans today than they did five years ago, 10 years ago, 20 years ago. if you remember the asian crisis in the late 1990's, it started in thailand, where most of the financing occurred from a handful of financial institutions, and when they had a problem, the entire country had a problem, and it spread

throughout asia. the united states has heavily been dependent on public and private markets to fund it over the last decades. other markets that are dependent on a handful of institutions, if those financial institutions have challenges, access to capital will become very difficult. haslinda: having said that, how fragile do you think the financial system is right now? the collapse of svb, credit suisse, and its own turmoils, is that a reflection of deeper troubles within the system? >> i don't think so. the losses that occurred, as you look at them over a different period of time -- the losses that occurred were a substantial expansion of deposits, borrowing at very low rates. the purchase of government agencies -- aaa, aa securities. it is interest rate losses, not

credit losses going through. you will see these challenges with the refinancing of structures today where they have an financed at substantially lower rates. in the united states and other countries today, there are also more companies controlled by private equity that are public, so the question is -- do they have the right capital structure today? so the expensive cost of refinancing the debt quite possibly will transfer equity to the debtholders and ownership in these businesses as they attempt to deleverage, but once again, your public and private markets in much of the west, particularly europe and the united states, are the primary financers of business as we know it today. haslinda: i'll be remiss if i

did not ask you about the bond market. we are seeing really wild swings , two-year yields moving 20 or 30 basis points in a day, something we have not seen for about 40 years. what comes to mind when you see movements like that? >> well, there's that famous phrase -- there are days when decades happen, and there are decades when nothing happens, and so in the 1950's, you might have had a 2% or 3% variation an entire decade, so in the last few months, we have had variations of 1, 2, 3, 4% -- i remember sitting on my trading desk in the late 1970's when variations ran 6% to 7% and silver went to $50 an ounce and so on. but these dramatic changes that are occurring are reflecting people's expectations, but they

are also a reflection of the enormous liquidity in the market. u.s. money market funds have between $5 trillion to $6 trillion, have more deposits than ever before. you can ask yourself today -- what are people going to do with the $5 trillion to $6 trillion? are they going to be investing it in financial markets as opportunities arise? your issues that you have seen are really not at the moment issues of credit. they are issues of mismatching liability times with asset maturities and primarily high-grade government and agency-type securities. haslinda: great insight. stay with us. we will continue our conversation with mike and discuss initiatives for medical research to achieve health care equity.

stay with us. this is bler ♪

haslinda: welcome back. still with us, mike milken, who has been at the forefront of successful initiatives in medical research. "fortune" called him the man who changed medicine.

you have supported medical research for more than 50 years. why write this book? >> i wrote this book because we are on the verge of a revolution because of technology. computers a million times faster. data storage costs one billionth . we have identified vaccines in the case of covid. it was 63 days before the sequencing of the virus, covid-19, and putting a vaccine into the first human being, so we are on the precipice here of an enormous change in health, quality, length of life, and i have a substantial concern here that once the pandemic is behind us, that we are going to turn down our efforts here and not take advantage of what

technology has brought us today, so we sit and talk about financial markets, but they pale in comparison to the measurement of the value of human capital, so in the united states alone, the human capital would be measured at probably 1500 trillion. a 2% increase in that would be $30 trillion, which would be greater than the entire gdp of the united states. over the years, it has been almost 50 years since i first visited singapore. the tremendous change in singapore and the research in singapore, now the national university is one of the top 20 bioscience universities in the world, that we stand here where technology has brought us to the ability to where we can cure life-threatening diseases in their own lifetime, so my concern was that i out after

this acceleration of our focus -- i felt after this six elevation of our focus that i could feel the world slowing down its emphasis just as we had this opportunity. haslinda: what does the future of health look like? what does it mean for equality, equity in health care? >> well, what it means today -- i have done this commission in california where we called it the personalized medicine commission. one year later, we changed our name to precision medicine. it was not just personalized. we could have exact knowledge. finally, when we submitted the report, we called ourselves the precision health, so, yes, we can diagnose diseases early. many of these new ideas that everything that was in your blood -- that was an idea we put forth at a conference 40 years ago, but we could not sequence

and no one knew what to do with it. today we are on the verge of being able to identify potential life-threatening diseases before they metastasize by just discovering fragments in your blood, so this is what technology -- we have a chance here to move to prevention. that is why it is called precision health. haslinda: in your book, you talk about how asian diets have changed, especially in china. what was the motivation? what has been the impact? >> if you went to medical school in china 40 years ago, you never studied diabetes because it was not prevalent. today, china has more people with diabetes than any country in the world, and probably more people with diabetes that are not treated. the change in the food chain changed to micro biome of people, particularly in eastern china, and with that, it would

have taken 100 years of evolution. we have now seen a substantial increase in, say, hormone-driven cancers, diabetes. the same is occurring in the country that has the third most children born in the world, nigeria, today. as they change their diet, they change their biomes. today, we have the ability to analyze what will happen and whereas we are not changing your genes, even though we have the technology in crispr but we have not figured out how we are going to handle that, you can change how your genes are expressed by changing your micro biome. haslinda: always a pleasure to have you on the show. mike mocon, chairman of the milken institute. back to you. haidi: much more to come here on "daybreak: asia." this is bloomberg. ♪

david: good friday morning. here we approach the opening of major markets in the asia-pacific, three things. one is the fairly important central-bank decision out of korea. going into the open in seoul, we are on bull market watch. a confluence of things happening

over the next few minutes or so. haidi: a confluence of things. that's what we like. market opens in sydney, tokyo, seoul are amongst us. this the crux of the theme for investors continues to be what central banks globally do from here, right? do they pause? do they think about pausing? and what sort of other economic and potential financial market surprises lie in store? we get those u.s. bank earnings kicking back on friday, and of course, our guest earlier this hour saying how potentially the banking crisis is not over yet. market opens are next. this is bloomberg. ♪

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david: this is daybreak asia, the approach to the major market opens and also some big breaking news coming out of singapore. we will get to that in a couple of seconds. the approaches we are looking risk on. >> inflation data out of the u.s. softer than expected. that tells us we will see a pause from the fed, the next big catalyst will be bank earnings coming out from wall street and the session later friday. haidi: we will be watching for the state of deposits as we hit that rearview mirror as one of our guests put it, look at what happen with the banking collapses and how we do continue to see liquidity conditions continuing to ease but is there more structural risk ahead. david mentioned we are waiting for singapore first data gdp crossing the bloomberg 7/10 of 1% quarter on quarter contraction, worse than expected. we saw growth add 0.1%.

that's really when it comes to the year on year number feeds into the global exposure that the singapore economy has, their vulnerability in the path forward for the central bank. david: here we go. look at this. it looks like, contrary to what most economists were expecting, the m a x is not doing anything based on the lines coming through. we have to go through this because there are three tools. they have maintained the slope of the currency, they kept the center. the third is it kept the with. there we go, dollars off against the same dollar as you would expect. that's the redhead coming across the bloomberg terminal. it's a pause out of the mas, haidi. haidi: that's always an interesting one because of how unique the policy framework is with the mas. we are seeing weakness when it

comes to the seeing dollar after they avoided tightening policy. up by half a percent. also hearing the projections out. 2023 gdp growth expected to be between half a percent in 2.5%. positive output had to turn slightly negative this year. let's get to our chief correspondent garfield reynolds. maintaining the slope of the center of the currency band and maintaining the prevailing slope of the policy band and the rate of appreciation when it comes to the currency band. what you make of this decision in view of that weaker gdp number? garfield: the weaker gdp number, that says a lot about the motivations for this, it also fits very much with the rates that are breaking out across asia and to some extent is expected to break out to elsewhere around the globe. so we had the imf warning

earlier on about dangers to global growth. the idea that financial turmoil has not finished doing damage to the global outlook. central bankers are in a situation they are short the mass does not use interest rates, but there has been a huge tightening cycle, massive rate hikes across the board. everyone is aware that those hikes are just about done. inflation everywhere just about in has peaked even if it's still elevated. a move like this from a move like this from mas to avoid further tightening fits with our global picture as well as well as the local picture. david: does this open up a lot more clearly this path towards a recovery in fixed income.

it really had a bad year last year. although volatility, garfield. garfield: i think it will be plenty of volatility because there is a lot of positioning on a lot of concern about dislocated markets because of the impact of years and years of quantitative easing, so large amounts of government that is owned by central banks, so that is causing its own difficulties. there's also a new battleground opening up, which is a lot of bond investors are convinced one central-bank stop hiking, they will soon have to turn around and cut the fed being a prime example where there still an expectation of a hike in may but then from that may hide, the fed rate is seen as being 75 basis points lower than where will be after may by the end of the year. so, one high, three cuts.

there's a lot of central banks we are seeing doing similar in central banker after central banker whether they have pause or otherwise, they've been pushing back against that. you look at south korea earlier this week in our region where they held as expected. but they did leave the door open to another hike. in the korean bond space, that sort of action will continue because central bankers are still worried about inflation. they are worried about inflation and that means they are not willing to consider this sort of rate cuts that bond markets are already preparing for. haidi: garfield reynolds as we continue to monitor some of the commentary coming out from mas and also singapore. following the big miss when it comes to the first quarter gdp number.

the wrists to the global economy and growth of singapore tilted to the downside. perhaps the most -- core inflation is expected to ease by the end of 2023 and gdp growth is below trend. we saw that with those gdp numbers. david: absolutely, they are to focused, may be arguably, on this pause, not really focused on what comes out the back of that. if this is really a global economy headed in the direction. china's top banks are planning to get this $5.8 billion upon cells as a capital whole. more details on your bloomberg terminal. certainly one group to watch when the market opens in about 90 minutes or so, it should put pressure on equity markets. if you don't find out with those names are, check out that story on your bloomberg terminal. the bloomberg there, megabanks.

annabelle: megabanks take a look at what we will see on wall street. and really watching those deposit flows. today the session the focus is front and center on that inflation data. softer than expected numbers, jobs figures coming through, telling us it's time for the fed to take a pause. off that we are seeing more risk tolerance coming into the session. he saw the 10 year yield rising. we have the nikkei 225 coming online to the upside around 1% higher. one stock we watch is retailing. that is the parent company and we are watching for the stock to start trading. we did see the prophet climbing in the fiscal second quarter or so. it has improved its forecast for the coming quarter. that is just a few moments away from trading. let change to what we are seeing in korea given we are just a whisker away from the kospi rising 20% from a september low.

the key line we are watching for his 2586.59. extremely close to that level right now. the korean won is strengthening with very closely with another key psychological level that we are watching for his 1300. let's change now because we have australia also opening. this is just the early indicators we see with the asx 200 tracking that lean we see from wall street. one domestic factor we are keeping an eye on is the aftermath of the biggest cyclone we have seen in western australia in more than a decade that made them full overnight. it is the nation's key resource state and it does remain in the path of the storm as a tracks and then. just a final check we do understand fast retailing is just the start of trading. opening day up 6.5%. david: not on the floor, as they say. the opposite of it. thank you so much.

this is a weird market. korea flirting with the bull market. the dollar is low, china slid below a key support level. maybe some pressure there later on. go -- that's another one. that has been flirting and is very close about 20 bucks now to the all-time high. it hit 2021. here's the thing, standard chartered is with us now. head of equity strategy at standard chartered wealth management, i have to ask you about go. i'm holding on one hand the march 20 in new guys are saying go won't go up. the other report, 17 days after your saying, by go. which one do i believe. what's changed in 400 hours? daniel: we believe in the new one, we believe in the one that we say we have upgraded going and overweight. the main reason is because of the fact that we are seeing a technical fall in the dollar not has broken down below key

support for the index. usually, if you get weaker dollar gold as well. also the fact that the real rate, real interest rate has been week, has been falling and is supportive for gold. there's less opportunity because goal doesn't yield. so those two are important factors. the other factor to know is that the economy is slowing down, inflation is slowing down but this is also slow down, which means that volatility still persists in the markets. we need some sort of insurance. in gold is a good insurance policy. david: not just equity markets, it still defensive based on your tone. >> is still defensive because the fed is probably going to do one more hike and they are likely to pause after that.

and the earnings are looking a bit shaky. we are expecting a second consecutive quarter of falling earnings in the u.s. that's a technical recession and earnings and basically that's capping the upside for equities. so we are staying defensive with gold and fixed income. haidi: what about countercyclical when you take a look at china, he looking for different ways to get exposure there? >> in china we are still emphasizing on the consumption space sectors like consumer discretionary and also communication services. so mainly those that are related to the internet sectors. we understand that this week they have been back in that sector because of the

regulations that the authorities are demanding for ai development. the way we see it is that that's a healthy development because they're such an emerging technology you basically want to put the rules down sooner rather than later. we will see there is a broad-based regulatory theme we solve two years ago. haidi: what do you like in the government bond space at the moment? >> we like the government bond space because we do see that, for example, in the u.s., the u.s. 10 year yield is basically kept around three point six. that's the key resistance level. so, if it hits that level, people should buy more on the u.s. government bonds for the

safe exposure, safe strategy. david: market steel and probabilities, what of these worst-case scenarios don't pan out. what will i regret not buying right now? what's tempting you but you are still not fully convinced? >> in terms of equities? david: whatever it is. >> basically we can have a scenario where inflation drops off fast and we don't get a recession in which equities will be doing very, very well. therefore, at this moment we are advocating people to be overweight and japan and china because of the fact that the policy is quite supportive. in stimulating the economy after the last few years of zero covert restrictions. the other area to look for is

the selective technology space in the u.s. in the defensive technology. the big technology companies in the u.s. if it is kept, those can do well. but you don't want to get involved in the speculative growth. that's not the right environment. for the bellwether tech stocks, they should have a pretty good environment for them to perform. david: i think there's an acronym for them. head of equity strategy at standard chartered wealth management. haidi: let's get first word headlines and the fbi has arrested a 21-year-old air national guardsmen for the legal classified documents that have details on the war in ukraine. attorney general merrick garland says they will be charged with the unauthorized removal of transmission of national defense information. the new york times has reported

that it was the leader of a gaming chat group or the documents first appeared. it would hit in more than a decade and has made landfall in is having a major impact on the states commodity producer. the category four has forced the closure and the key iron ore export facility. while they are scaling back operations and staffing levels as the storm passes through. meanwhile, the cyclone, which wreaked havoc across parts of new zealand two months ago, could cost the country $6 billion in disaster relief. the finance minister says he wants to minimize any additional borrowing to fund the cleanup cycling. he's due to deliver his annual budget next month as new zealand is struggling with high inflation. >> clearly there's a lot of different conversations going around. climate change into geopolitical issues. for me it always remains the

biggest risk to new zealand. it's important to me that we diversify our economy and we make sure we are selling more could to different places and that we develop our services sector. we do all of those things but ultimately the international environment will dictate a lot about what happens for new zealand. that's my number one risk. haidi: global news powered by more than 120 journalists. one over 120 countries. we are amongst them. what's coming up. david: you and i. uni. -- you and i. our exclusive conversation with central bank. the governor there, they are not done when it comes to inflation. that's what they say despite signs of prices, that exclusive interview is next. a check of these markets where that specific equity market is flirting with able market this friday, this is bloomberg.

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>> still have tight labor markets, consumption spending is still holding up, but the balance of risk is still coming. >> we cannot turn our back on china, they are a very important trading partner and economic partner, it is a very important creditor to countries.

we cannot just ignore china. >> there's a lot of different conversations going around, but issues like climate change and geopolitical issues. for me there always remains the biggest risk to new zealand. click some of the major and balances through monetary fiscal policy and it will be for the economy. >> i am confident we will get inflation back to where we wanted to be, but it's a project and task we all have to play our part in. haidi: speaking to bloomberg tv on the sidelines of the imf spring meetings in washington. the warrant inflation may not yet be over despite signs of calling prices. the governor spoke exclusively to bloomberg in washington and set it is still uncertain whether the central bank's current policy is tight enough. >> we are expecting our inflation rate to go down near the end of the year, and we want

to be assured. so as long as we share that it's on track, then we will think about when we are going to change our stance, but is still too premature to be certain. >> you said premature several times before, do you think markets are finally getting the message? >> it's not our own problem, and the united states and many other countries like canada, they market people very soon. the same thing happening. , our investors think that our interest rate are with people probably within a year. i gave a warning that their expectations -- our policy committee members think that the expectations are ahead of our expectations. >> is out also because you are worried about the weakness of the korean won, now the worst

performer in asia? >> i don't have a period concern on the level of exchanges set. what we worry about is what will be the future of the oil prices. opec plus decides to cut down the production and increase it down the road or not, and also we have to be sure whether to maintain after this turmoil is stabilized and how soon and how much they will raise the interest rates. it's very hard to focus what you will do. >> even with the shock analysis of opec-plus, we haven't necessarily seen that spike in oil production prices and it seems that china's reopening hasn't brought that inflationary way that we were expecting, so

are you so guarded against the potential spike in prices. >> there are two views, it may increase the oil price and the economy and in case of the turmoil, may be slow down with helping to make the oil price hit the ceiling. with this uncertainty, our concern is that when the inflation is not going down, we have to de-calibrate our policies. i am sure that our inflation paths will go down as quickly as we on the market is expecting. they may be, but maybe not. i want to give a warning that it's single data. >> it's like you are trying to get ammunition in order to have to fight potential inflation in the future. a 3.5% interest rate, is that enough ammunition?

>> i think we are in a distinctive area, and more so, we have raised our great and the last one and a half years. so it's a good time for us to assess what kind of impact you have. so that is one of the reasons why you pause. but on the other hand, there is a message that this level is restrictive enough for automatically to reduce inflation because there are other things we have to consider. david: that was the bank of korea's governor speaking exclusively with shery ahn. as you get your day and get warmed up for the trading day, looking at these markets, dayb for bloomberg clients, check out the big stories that you care about, it's also on the app in case you are in mobile. he really get a sense of weight you really care about, and as you look at that, looking out markets, coming up high, going at about the half-hour mark of

these equity markets. kospi flirting with the bull market, you might not get there today looking at these last few minutes or so. morehead. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. hsp is recruiting 30 bankers to service india's ultrarich. sources say say that bank is looking to fill the roles internally from staff in the country and high wealth managers from rivals and independent firms. hsbc is said to be looking to launch its private banking service as soon as june. india's second software services firm forecast sales that lagged estimates. the company says it expects to post revenue growth of between 4% to 7%. the company u.s. listed shares fell over 9% after the outlook

told the city to downgrade the stock. delaying start dates for some recent hires at us it looks to calibrate the more cost-conscious environment. sources told bloomberg the firm is offering an additional sign-on bonus for some people who start dates have been pushed back. lots more to come on daybreak asia, this is bloomberg. ♪

david: welcome back, 30 minutes into the cash market session of

seoul, tokyo and sydney. we are coming off eyes from the benchmarks, particularly you look at what's happening in korea. still early, do we enter the bull market today. we are give or take about 20 points, 20 from that threshold. s&p futures flat on the back of that really good session overnight. moving to the fx markets, and this is really consistent still with what we seen so far. two things, dollar weaker, below 101. tics inspected 12, 13 months back. we are getting lines coming through in the statement, conversation taking place in washington between the two most important central bank governors in the world, jay powell and the pboc governor. they talked about the u.s. economic and financial situation -- u.s. and china situation -- what else would we talk about. in case you missed it, -- sat on

interest rates in singapore and we are looking at weakness in the -- which could be getting a little bit of a floor there when that cash market opens at the top of the next hour. haidi: a really as to the picture of the global uncertainty. keeping how exposed we know the singapore economy is and how week that first order gdp number is, kind of just painting that picture of economic uncertainty across the region. let's take a look at the first word headlines we are watching. the says china and india will account for about half of global growth this year. they are forecasting growth in the region at 4.6% in 2022. that 70% of global growth. director of asia and pacific department says china's recovery is lifting activity around the region and sees the biggest impact coming from demand for consumption groups. the be ok governor says the

recent banking turmoil in the u.s. and europe has not affected -- directly affected korea, but they also told bloomberg there's a lot to learn from the crisis and that they also have to be ready for similar situations. >> at hasn't affected us directly because of the exposure to the silicon valley bank was limited. so far it looks good. haidi: brazil's president is calling on nations to come up with alternative currency to replace the dollar in foreign trade. this supports china's crusade for what it sees as the global dominance of the u.s. meeting chinese president xi jinping on friday. brazil and china took steps to make it easier to settle there foreign trade operations. those are your first word headlines.

david: the ruling party has picked a vocal supporter of taiwan independent as its candidate in the next presidential election. our chief north asia correspondent stephen engle has been taking a look at this story and what it exactly is at stake. stephen: the opening political salvos had been fired ahead of the political taiwan presidential election next january, with the outgoing president angering beijing with a visit to the united states and meeting with house speaker kevin mccarthy. china retaliated with three days of live fire military exercises around taiwan. this as the opposition says it's pro china engagement of the former president to mainland china. the first to visit by a taiwan leader since 1949. we are talking to parties by literally positioning themselves in opposite directions and an

increasingly divided geopolitical landscape between china and the u.s. both trips were seen as calculated risks for both parties for an election that will likely put the vice president, who maintains that taiwan already is independent, versus an unknown challenger, possibly parting chair, the taipei city mayor, or even foxconn technologies founder. >> referred from them that the u.s. is at the center of all the wrong in the world. china will stand tough, including in taiwan. >> geopolitics will remain unfortunate and that will be a several year issue and that's by we will continue. stephen: but will it escalate question right china and the u.s. have tried to downplay the trip so as to not make an already tense relationship worse.

click settle think any serious thinker and the government, united states and china or in taiwan believes that there will be more in the shorter term or in the medium term. we are still in the diplomatic arena. stephen: that arena became a military one when china's people's liberation's army encircled the island with the simulated assaults. shortly after, taiwan voters handed them a resounding defeat in local elections. it largely reflected frustration over the rising cost of living and also hinted that the president's party could be vulnerable next january when debate will undoubtably turn to straight ties. with u.s.-china friction centered around taiwan, the winner will immediately step into a role that could determine the trajectory of geopolitics in the global economy for years. stephen engle, bloomberg news.

david: more on this news coming through here, it should be coming from the statement out of the pboc. it's not this one, that's another big story. them looking to plug that funding. the central bank governor, three things, the economy stabilizing and rebounding. it will remain in state a low level. forward-looking indicator, the property market is showing positive changes. that's alluding to the early signs that we have taken a look at the data. it has shown early signs of picking up. on top you have the banks and

the other big story. and then looking to raise quite a bit of cash in the fixed income space. about 6 billion to plug that funding that. lots ahead, it's busy, it's friday. the weekend can wait. plenty more ahead. this is bloomberg. ♪

>> it's very important for the regulator to have a deep understanding of the industry and i can say, without offending anybody, most regulators don't have industry experience. >> and hong kong received a good sign. the regulator here is very open and it goes into the industry. and we are very excited to continue to have the commitment. >> it's a serious business. we are dealing with retail investors. it's a serious business. these things have to be done very carefully. haidi: leaders across this crypto space speaking about the festival. let's bring in annabelle who was there and is standing by with our next guest.

annabelle: us right, there's actually another annabelle. she's the director joining us. you will be speaking at the web free festival in about an hour's time. there has been so much optimism in hong kong. it does contrast a little bit from where you're based in singapore with the crackdown on crypto retail trading. which markets you think is the best one suited for this point? >> we started in hong kong about five years ago and only move to singapore two years ago. the reglet tory scene has been very dynamic in these two cities. this time being back in hong kong, feeling the vibrant purchase of panda and all the things happening here has been very bullish. we have one of our biggest offers in hong kong, so we are playing close attention, preparing for license application. >> which one? >> the b.a.t. p license in hong

kong. in singapore we have extended operation. one of our second largest office being based in singapore being locally licensed throughout our merger with a local license entity. so for us, the two markets are equally important and we are looking forward to all the great things that's going to come out of both markets, hong kong is sort of leading the way at the moment, but i think singapore is not exactly closing the doors. annabelle: japan has pretty strict rules. it was just over a year ago, are you intending to keep the business unit are intending to sell it? >> we are looking at different ways. you are correct in the sense that japan is a very high-quality market but the regulations are strict and they are looking to revamp a lot of

regulations that would help relax the trading restrictions. >> for us we are looking at different options, it's not our core focus. we are refocusing on our institutional focus. i think that's in line with it. annabelle: what sort of ballpark figure? >> there is intransigent assets and intrinsic deposits and that fluctuates with the coin and marketplace, and there's also the implicit license value in it : so we are exploring options but nothing to announce. i think japan is still looming in terms of the different web free applications that are coming out of it in terms of gaming and other things.

we are not surprised to see even a two player. annabelle: let's talk about the fundraising you did in december, that was $300 million. it was about dealing with the damage from ftx. how did your stakeholder or shareholder makeup change as a result of that. >> we have -- we have reintroduced more board members coming from our latest lead investor. as a result we are also setting up jv and we are launching a regulated mutual fund that can also taken crypto, bitcoin, in theory him and stables as subscription. that is something we are working on very closely. annabelle: in terms of the investors, when you said you made some changes is dan still on the board of directors. >> he is not currently on the board anymore, we replaced them

with new investors and also from sovereign fund investor. annabelle: what was the reason for him stepping down? >> nothing, in terms of new direction of the firm, we have exciting new adventures coming up and we felt that is better strategically for us going forward. annabelle: in terms of the top five stakeholders now, what would that look like in terms of percentage breakdown. >> our series elitist of one of our larger shareholders. paradigm, one of the leading web three and web two globally. annabelle: let's talk about the more macro -- micro strikes. it is taking place successfully, we are above that 2000 mark now for the token, do you think it will close that -- closeout performance cap this year? >> after the upgrade, it has

been a day, we are already seeing more institutional demand when it comes to a ethereum, stake on state, liquidity, i think that will drive a lot of the interest in this case. and it's sort of intrinsic financial's asian on -- financial eyes -- financialization. there's a lot of scaling on rollup solutions being brought to the market that will enable a lot more use cases. so i think in our mind, there is going to be a lot more development within the ethereum community. with that said, bitcoin is still the king of crypto, the -- whenever i think there is some sort of a market fear or uncertainty with investors fleeing back to bitcoin first. annabelle: would you say we are

out of the crypto winter? >> i don't think we are out of the woods. being in hong kong maybe that assumption needs to be challenged given how vibrant it is here. but i think a lot of it still depends on the macro markets. obviously everybody is paying attention to the rates market, inflation, so i think most of us are still waiting until maybe next year when new narratives come into the market. annabelle: the amber group managing partner. so much optimism around the crypto space in hong kong. the big question is whether we are out of their crypto winter. and she was saying perhaps not quite yet. haidi: plenty more to come on daybreak asia. this is bloomberg. ♪

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david: welcome back. we take you to the imf world bank meeting. china must agree on a new process to structure loan stress so that there is less pressure for developing countries burdened by debt. >> the debt has grown up over the years, the composition of the debt is different from in the old days. that used to be u.s. banks that were lending to the foreign countries, now we have china and

the euro bond market lending to developing countries, sovereign debt. so there was extensive talk yesterday, i cochaired with the debt roundtable, china came at the level of the pboc governor and also the ministry of finance of china, so they participated in the discussion, and there were some agreements, there was agreements that there needed to be more timeliness of the launching into a restructuring process, that there needed to be data sharing. china asked from the beginning, can't we get the data earlier question that hasn't been the tradition, but it's going to be. there's a paper to do that. also a working group, which is important on the technicalities of burden sharing. a how do you have equal burden sharing among creditors so that they all participate in the restructuring process of the debt? this is really important to the people in developing countries because their government -- their governments are paying

these large, not low interest rates. kind of market rate or above market rate that and it means it's draining the countries of what they need for nutrition, for health, for education, for climate adaptation. >> are you satisfied with what china has committed to or do you need to see more? >> yesterday there were big meetings. we had the g20 meeting, the g7 meeting of finance ministers, the development committee, the governors of the -- expressed strong support of the world bank leadership. and there was discussion of she 20 even late last night of this specific countries that needed to get action on debt relief. zambia was here, i had a panel with the zombie and finance minister, the ethiopian finance minister. they are burdened by high level of debt. the proof is in the pudding. the details of is zambia going

to get an mou? we like to see when this week. china needs to be willing to sign off on the structure of the restructuring. >> one big question has been transparency and a lack of it and a lack of understanding how much debt china has extended to a lot of developing nations. do you walk away from meetings yesterday with a greater sense of how much debt they currently have tied to the develop -- tied to the developing world? >> we know quite a bit about of -- about it, but not to the full extent. there is discussion that some people say swap lines by china's central bank should be left out of the restructuring. some say it should be included in the restructure. there was talk about what to do. so as these restructurings drag on, the interest on the interest goes up and up. so can you agree in advance on a

have a handle that. so get straight into the details. there was a proposal made -- polls across the board on how to handle this, so i think there's lots more work to be done for the police there's a technical or a workshop that is going to be set up to bring people up to speed on how you calculate net present value reduction within debt restructuring. >> would you identify this and everything we just discussed as these number one issues that you are handing over to your successor at the world bank? >> certainly debt transparency is a giant issue. there was a call yesterday for the debt countries to release the contracts that had nondisclosure clauses. so that's a specific thing that will outlast me and it's not going to get resolved. china it has written into the

contracts nondisclosure. that was specifically discussed. as we look towards the future, what i'm handing over to my successor as a world bank that's in good shape. that was the main theme from yesterday's meeting. a developing world under this giant pressure from too much debt, but also not enough growth coming out of the advanced economies. haidi: that was the world bank president speaking to us. taiwan's government is downplaying the odds of a direct attack from china just by beijing's increased military presence around the island. the deputy foreign minister told bloomberg exclusively that he is more concerned about possible economic blockade against taiwan. >> a blockade is possible scenarios, but it is very costly

and risky -- risky for any country, especially for china to implement. haidi: we are still processing the surprise decision to hold, singapore making no change to the monetary policy settings. perhaps unsurprising when he saw how weak that first quarter gdp data came in. we heard from them talking about the risk you to the downside when it comes to economic growth and just how vulnerable we see this externally exposed economy when it comes to trade flows and that trade momentum potentially slowing. this is what we are watching when it comes to trading. i think you know this as well, they sent out pretty limited impacts when it comes to equity trading in singapore, potentially we see a refocusing when it comes to the dollar as well. david: that's really wary we see the most pronounced -- at least so far, reaction and the market to this. at least financial journeys have

to pretend they understand it completely because there's no change to all three. lighten up, everyone. we opened on a high note. we are about 30 points with 20 points away from the bull market line. 2580. also looking ahead to the chinese markets, pivoting away from the chinese show. megabanks are planning to fund operation to plug the shortfall -- shortfall with money coming throughout of the pboc statement. plenty more ahead, the open and china's next. this is bloomberg. ♪ at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise

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rishaad: 9:00 in the morning in shanghai and hong kong as well