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>> you are watching daybreak asia. >> counting up to asia's major market opens. >> top stories this hour, asian stocks poised for a cautious open after wall street ekes out small gains. richmond fed chief saying he needs more evidence u.s. inflation is easing. investors awaiting a deluge of data from china on signals of strength of the economic recovery. charles schwab executives say the firm can weather the turmoil even as they pause stock buybacks. >> look at how u.s. tutors are trading. a mixed picture. this was the trading session we had in new york. the s&p 500 managed to gain a tiny bit, reversing losses from the afternoon session. but not that much. investors have a lot to weigh. we have data, in new york

factory activity expanding. what will the fed do? as they cut back rate expectations, we saw moves broadly. treasury years hyatt -- treasury yields higher. the two year yield surpassing 4.1%. the dollar was higher with a strong dollar. we had pressure on wti prices. wti in asia holding at $80 a barrel. also facing technical challenges because it has failed to surpass the 200 day moving average. haidi: so much of this depends on where the fed goes from here. we are getting more rhetoric. thomas barkan says he wants to see more evidence u.s. inflation is easing back to their goal of 2%, sparking bets of further tightening. with us now is garfield reynolds. we saw on the back of these rising yields, the recovery of the dollar as well. does it mean we change the picture in market pricing?

>> i think what it does, the drumbeat of fed officials talking about how they are not satisfied they have done everything they need to do, is it puts back on the table the potential that we go more than one rate hike from here. it becomes more of a two way bid, as it were. we have had a strong consensus that if they do hike in may or june, that will be one and done. but when we've got recovering data going on, we've got the continuing reduction in concerns about the impact of last month's banking woes and sticky inflation. jobs numbers that came out this month and the cpi that came out did very littleocymaket

inflation is necessarily going to come down sustainably to the levels they want. in that situation, you have to put at least a chance of fresh hikes beyond may back on the table so far, it is just a this digital signal that maybe june might go higher. but if we continue to get these trends strengthened, we might get a realization that there is a risk that the fed goes higher. after all, until the crisis came along, the expectation was they would go 50 basis points in april and possibly further in may. powell nodded to concerns about the banking sector and the idea that a credit crisis would tighten conditions in the real

economy. if those conditions do not tighten in that way, the fed might find it has to do more tightening via interest rates. shery: garfield reynolds with our top market story. we will also be watching tuesday's data dump out of china with numbers on gdp industrial production and retail sales, among others. surveys show a wide range of forecasts for growth, in line with recent data pain take a mixed picture of the world's second-largest economy. for more, let's go to -- what are you expecting? what are you watching closely, given gdp numbers can be backward looking? what should we be watching for? >> the china rebound is expected to be the big stories this year. today's numbers are expected to show a good quarter overall. retail sales in particular are expected to show a rebound.

consumption has been strong. our colleagues in beijing have been reporting the broad consumer recovery story is happening. that is critical to keep an eye out for. industrial data is also coming out and expected to take higher. experts have been strong. fixed asset investments have been picking up largely due to government support. it is expected to be a good quarter for china, the reinforced view that recovery is underway. of course, that is critical information for the overall performance of the global economy this year also. haidi: is this building expectation that china's recovery will lift all boats? it is still very important to the rest of the world. >> it is critical and it is a big variable for this year. there are a few different things going on this year. competition is somewhat different. in the past, china rebounds and

commodity exports have been the main beneficiaries very last year, the imf was making the point that they see those trading partners are probably going to do better out of china's recovery, given that it has been driven by consumption rather than china buying bulk commodities per se. that is an important change. nonetheless, china and india together are both tipped to be the big drivers of global growth this year. they both account for about 50% of it. it is critical to see how that recovery does play out in china. it seems to be one of the main supporters of global growth this year. the numbers are expected to confirm that authorities will trot -- will probably be on track for growth around 5% for the full year this year. any downsides to china will certainly add to gloom on some of the other parts of the global economy as well. haidi: let's get you to

annabelle for markets opening in asia. annabelle: investors are really looking for confirmation that recovery is on track. so far in terms of what we are seeing in positioning, -- has been gaining 1.3%. the expectation of recovery will look solid. even when you take a look at the city, china economics prize index at a 17 year high. we continue to see numbers coming to surprise the upside. that'll have knock on effects. we are watching the aussie dollar, very sensitive to china growth. also, commodity plays. even though the bulk of consumption has been more in the services sector, iron ore has been softer from china. let's take a look at what else we are watching today because so far are investors really are looking quite mutated. -- muted.

so anticipating more fed speakers and more earnings in the u.s.. so, we do not see big moves in either direction. in new zealand, also keeping an eye on the japanese yen. traders see more strength going back into the dollar with expectations the fed will continue to need to hike to rein in inflation. also tracking bitcoin as a risk sensitive asset class. still having around that key $30,000 level. haidi: let's get the vonnie quinn for headlines. >> taiwan set to be buying as many as 400 u.s.-made anti-ship missiles intended to repel potential invasion. the taiwan business council says the contract for boeing to produce a weapons has been issued by the u.s. navy. bloomberg sources have confirmed the deal to deliver harpoon missiles as trying to sold military drills. g7 diplomats have presented a

united front on china days after emmanuel macron -- beijing. sources say they sent clear signals that chinese weapon deliveries to trot -- to russia and military escalation with taiwan would be on acceptable. macron stirred unease after saying the eu should avoid being dragged by the u.s. into a dispute with china. apple sales in india set to hit a most $6 billion through march as ceo tim cook arrives in the country to open its first global stores. a bluebird source tells us that revenue in india grew by nearly 50%. apple will launch its first local stores this week in mumbai and new delhi. reuters reports that -- will beach narendra modi wednesday. space x has delayed the launch of its massive starship rocket system. it blames pressurization issues that emerged in the minutes before liftoff. the comedy disclosed the problem in a live stream. elon musk separately confirmed the issue on twitter. the next launch will come

wednesday. the hong kong stock exchange planning to make its listed companies reveal more about climate-related risks. under new rules, companies will have to -- details of transition plans, measure and disclosure emissions and elaborate on the risks and opportunities presented by climate change. this seeks to align with rules developed by the international sustainability standards board. global news powered by more than 2700 journalists and analysts in more than 120 countries. shery: coming up, bloomberg has learned that taiwan is buying more u.s. arms to repel a potential chinese invasion. -- tells us why they expect international markets to outperform the u.s. this year. this is bloomberg. ♪

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♪ haidi: let's look at the set up when it comes to the future session. we are minutes away from the start of trading in australia. you're seeing quick -- weakness as we get into china gdp and the domestic activity indicators we are waiting to give us a better look at how much of that reopening rebound has actually passed through. sidney futures are weaker. went you 5% decline. quibi stocks on the down. we will be getting minutes from the meeting where they paused rate hike cycles. so much of our focus is on not just china and how cautious investors are when it comes to the next leg of the growth rebound, but also the ramp up of rhetoric from the fed suggesting we are seeing repricing on a fed rate hike expectation.

our next guest in stash expects foreign markets outperform the u.s. we were chuckling earlier about how u.s. equity board certified in them -- are finding themselves in a lonely place. >> i think international markets could outperform the u.s. for three reasons. lack of escalation with geopolitical issues come a weaker dollar and monetary tightening that is ahead of the curve in many countries outside the u.s. we like china, indonesia, korea, japan. emerging markets, which is one of our topics, we like brazil and mexico. those areas are where inflation has already run the gamut, monetary policy is either ahead of the curve or loosening, and reopening from china which would be positive for pan asia in general. haidi: so much of this hinges on the dollar. we have seen hedge funds in on the bet we have seen the end of

the pullback when it comes to the dollar, which has been the longest losing weekly streak in three years. how does that impact how you feel about emerging markets? which factors you think will favor the dollar the most? >> a strong dollar had been a headwind. our view is it likely does we can from here because the u.s. in terms of interest rate hikes are likely one and done in may. so no more hikes. they pause, but we do not pivot. the economic slowdown we are seeing for manufacturing data to consumer credit likely tightening because of the banking crisis and signs of weakness and employment data, i think the dollar weakens and that is the tailwind for emerging markets and non-us equities. shery: we are how do e.m. earnings look? >> that's another positive. estimates look more reasonable for emerging markets. there hitting an earnings

recession in the sense that it is stash first-quarter earnings are going to be the second quarter in a row of negative year-over-year earnings growth. the issue is margins because of the high cost of inputs. what is growing in the u.s. is revenues, below single digits on a positive side. i concerned with revenue is that they have been built up because of pricing power. as inflation starts to moderate, companies may lose their ability to hold onto pricing power and therefore revenues. also, valuations are a positive. much cheaper than the u.s. where premium valuations could be a risk. haidi: last week at the imf, speaking to all of these policymakers from developing economies, nobody seemed to be sure that we are headed towards inflation being completely tamed . they wanted to expel expectations that they were near turning dovish. if we do see these markets continue to keep rates elevated, what is the potential of a policy mistake and potential

recession? can you hedge that? >> our view going forward is that what it comes to inflation, that period of extremely low inflation rates we saw post global financial crisis is likely behind us. that is going to be the issue. whether inflation can hit 2% is a question. i'm not sure we will level or -- ever get to that target. even though the fed stops raising rates, they are going to pause and they do not think they are going to pivot soon because there are areas of inflation that are very sticky at it is going to be tough to get those back down to a level the fed wants. therefore, we likely eventually hit economic slowdown. there crisis also is a factor as banks pull back on lending. it is going to hurt the consumer and for consumer and employment have been holding up the u.s. economy. if the consumer starts to feel pressure, eventually the employment market will too. haidi: the other major economy we are focused on today, china gdp and all of those thomistic

activity indicators are coming in. take a look at this chart when it comes to the economic surprise index pertaining to china. we had some uneven spots when it comes to weakness and obviously inflation. household savings picking up. not as strong as expected. but, it is actually at a 17 year high-end a lot of data points have blown expectations. how much of the china growth story informs your positivity on broader emc echo do ask that she e.m.'s? do you expect recovery echo >> china is a very important part of the story. china reopening is going to be a positive. i expect to see that in fits and starts paradigm would like to see more broad participation from the chinese consumer. also, regulations. we are seeing less pressure on regulations right now.

that is a positive. china, it is going to be an important part of the story but we are positive on china as the reopening continues and the consumer participates more in the economy. >> good to have you back. you can get a roundup of all of the stories you need to know to get your day going in today's edition of daybreak. terminal subscribers go to db go. new can customize were setting so you only get the news on the industries and assets you care about. this is bloomberg. ♪

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parade of results continues. charles schwab executive say the firm can withstand the latest turmoil even as deposits dip and they pause stock buybacks. su keenan has been following. the banks citing regulatory uncertainty. >> it makes sense, during prior bank turmoil with big banks, they were actually asked by regulators to halt buybacks. the failure of these three regional banks, including silicon valley bank, is the reason they say they are holding off. it was also underscoring that it could weather the storm and withstand the turmoil in responding to the worst banking crisis since 2008. it posted first-quarter results, showing it cap trust of customers. profit climbed 12%, that beat the estimate. the stock rose almost 4% even though deposits slid since the end of last year. they were down about 30% from a year earlier, which matched estimates. check out the banks.

schwab in the green. state street come a very different story. state street shares plunged the most in three years. check out photos get a chart. you can see the drop. state street announced customers withdrew $26 million in investments. they do not think the outflows are over. at one point, the stock was down as much as 18%. they reported revenues were down, assets under management fell 10%. notably, they still think they are going to be able to go forward with 2023 share buybacks of $4.5 billion. check out the big picture. more banks set to report. bank of america and goldman, notably. one of the areas almost everyone is looking at is the bank industry commentary. what do these big banks see? how are they navigating? we are hearing very different

stories. shery: the offloading of the federal bank securities is about to begin. su: blackrock is becoming a big advisor to the fdic. they were brought on earlier in april and we will be kicking off the sales were the fdic needs to offload 114 billion dollars in assets. any of the mortgage related that have picked up from silicon valley and signature bank. blackrock expected to ramp up trading took four days a week, up to $2 billion a weekend it is expected to be orderly. in terms of aftermath of these failed banks, many of the others causing investors not only to withdraw assets, but a lot of banks to sort of hold off on activity. wells fargo became the first in selling bonds, the first to do

so post svb. it is the first large u.s. bank really to sell bonds since the collapse. we are seeing a lot of deposits return to small banks. the banking turmoil caused many american investors to learn for the first time that anything over 200 $50,000 was not insured. smaller banks saw a lot of outflows. we are now seeing a return to those, a lot of those deposits. that is an indication that many are starting to put the banking turmoil of last month in the rearview mirror. it is not clear yet. we still want to hear from the banks. haidi: su with the latest. we will watch for major earnings out this week from bank of america, goldman sachs and morgan stanley. to give us a fuller picture of what is going on across the banking sector. let's get you a check of the latest business headlines for hsbc's largest shareholder

expected to back resolutions to force it to provide regular updates on its business structure and restore dividends to pre-covid levels. at a meeting, -- backed resolutions put forward by an activist investor. hsbc end to the chinese insurance group have been at odds with the bank repeatedly rejecting calls to break up its business. credit suisse says stash $4.4 billion from its funds since it was acquired by ubs last month. according to analysts, this represents around 2.5% of their assets under management. outflows have eased since march with the recent inflow of $230 million, suggesting the work of the bleeding may be over. alphabet fell the most in more than three weeks following the report that samsung considered replacing google with being as its default search engine. the new york times reports the contract is under negotiation into the company could still stick with google. up next, taiwan is said to be

buying as many as 400 anti-ship missiles from the u.s. to boost defense capabilities. we get to -- we get details. this is bloomberg. ♪ when i was his age, we had to be inside to watch live sports. but with xfinity, we get the fastest mobile service and can stream down the street or around the block! hey, can you be less sister, more car? all right, let's get this over with. switch to xfinity mobile and get the best price

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♪ haidi: taiwan will buy as many

as 400 missiles from the u.s., completing a deal approved by congress. it is part of a packet of weapons intended to repel a potential chinese invasion. for more, let's bring in stephen engle in hong kong. as we have mentioned, this is something that was agreed upon in 2020. what is the most significant thing about the deal? >> it comes at a time of increased tension between china and the united states over taiwan. this is a 1.7 billion dollars deal that the pentagon announced 10 days ago on april 7. but it did not name taiwan as the buyer. sources are telling us it is part of this broader package approved by congress in 2020. some in the house have said there is a backlog of some $19 billion of taiwanese orders for u.s. military hardware that needs to be accelerated,

including f-16 fighters, torpedoes, howitzers and missiles, in addition to these mobile and land-based harpoons. this is the first time taiwan will receive the land-based harpoon missiles. they do have ship-based firing capabilities for the harpoon, but other sources are saying 400 is not enough to repel a chinese invasion. but still, very successful, potentially, inc. -- against any naval invasion. i don't mean to ramp up the rhetoric on this, as obviously tensions have escalated, but you can clearly see -- last year as president, they are trying to up their defenses going forward with very little dialogue between china and the united states directly. haidi: security is atop the agenda of the g7 meeting in japan. what came after the final gay

that final day? >> yesterday, we were talking about potential rifts starting to form within the g7. in particular europe on the u.s. approach toward china. we heard those comments coming from emmanuel macron when he visited beijing a weekend i have ago, is sexual -- essentially saying europe should not be caught the middle. this angered some of the european union, including the germans. there was concern the g7 foreign ministers, the top diplomats that met the last couple of days in japan as part of a series of three major meetings over the next month of the g7 in japan. the concern was that rifts were forming. u.s. secretary of state antony blinken yesterday set on the final day of the g7 foreign ministers meeting in japan essentially tried to present a unified front. he says of the last day has only reinforced the convergence of views that we have on the approach to the most important

issues of the day. even the fact that japan is hosting this year, china and issues in east asia are taking precedent. it might be worth adding that antony blinken made those comments, and we have video, made those comments while sitting next to his french counterpart. essentially they are trying to coalesce, get a clear message of a unified front from the g7 in face of what they perceived to be overt actions by the chinese. the germans have also been playing their part. the foreign minister of germany made a visit to china last week. sources are saying she felt there was a little bit of a contention with her counterpart in beijing. she took exceptions. people are saying she left beijing a little more skeptical towards china than before. this is what she had to say while attending those meetings in japan after the trip to

beijing. made clear in china, we want to cooperate. we want to be partners, but we are not naive. haidi: stephen engle there with the latest on geopolitics around china. we are watching how the markets in asia are setting up. what are you seeing? annabelle: geopolitics is just another factor that investors need to be keeping an eye on as we head into tuesday. brother today, the focus is going to come down to the data we get from china later. the gdp numbers plus the monthly activity numbers as well. that will confirm whether the strength in the rebound remains intact. otherwise today, the focus also coming down to what we are hearing from fed officials and the richmond fed president is the latest, saying there is need for further tightening terrain in inflation. today, we are looking cautious. really not affecting any sort of big moves. investors are more likely to be

sitting on the sidelines as we get more clarity from earnings. you can see the vix is sitting around the lowest since the start of last year, telling us perhaps this could be a signal of complacency. let's change now because i mentioned earnings and tech is going to be one of the next big sectors we are focusing on. what is interesting is that really this has been the sector that investors are piling into this year, given what we are seeing in bond yields and big tech becoming a safe haven. marco collateral it from j.p. morgan is the latest sounding the alarm bell. notable of course because he was one of the more optimistic people on wall street before he changed his tune last year. proudly what j.p. morgan is saying is that he is you will see gains in tech stocks over the course of the year, but only in specific names. this chart shows the top tech shares actually less closely trading relative to each other.

really streaks to that momentum and depth of the rally hasn't been foreign-based. just let by a handful of games. shery: we are watching apple as one of those handful of names and hardware tech companies across asia. bloomberg now learning that apple sales in india hit a new high of almost $6 billion through march. that is highlighting the markets increasing importance for the company. as tim cook arrives opened its first local stores. running us to discuss is associate research director. always good to have you with us. we continue to see increasing costs across the board for these tech companies. challenges in consumer demand. how important will india be for apple? >> india was the sixth largest market for apple in 2022. an the few markets that apple

continues to see strong double-digit growth. and also in the pc. i think it is really important for apple to continue its momentum in this market. shery: what are some of the products by apple that drive markets in india? what do consumers like? >> obviously there are the iphones. but then there's also macbooks, tablets and other accessories. when we look at iphones, which is contributing to their highest share, it is not only their latest iphones that are big sellers, but some of their older models. last year in 2022, iphone did really well. at the same time, we saw a lot of sales in the 12 and 13

models, which have huge attraction amongst consumers. haidi: the fact that they do not have that earlier status like a lot of chinese brands that are popular and samsung also dominating the market, does that matter for apple? do you think the type of consumer that wants apple products is set apart? >> we have to keep in mind that it is just targeting the premium segment. a lot of the market share we see by the chinese and to some extent by samsung is targeting entry-level consumers who did not have a smart luck -- who did not have a smartphone before. there share is spread across these different price plans. when we look at apple, it is largely targeting the mid to high premium segment. >> what about the manufacturing footprint?

>> apple started manufacturing in india in 2017. slowly it has been increasing its manufacturing footprint. last year, somewhere close to 5% or 10% of its iphones were manufactured in india. at the same time, we have seen apple pushing the tablets and -- production in vietnam as well. we have seen -- for apple to supplement next to china, which is their biggest manufacturing hub for iphones. more than 90% of the iphones were manufactured in china last year. china will remain important but at the same time we think this plus one strategy with india should reap benefits in the long run. shery: what is the biggest risk when it comes to this market? i guess part of that is really a lesson learned in terms of how that middle-class heart has developed.

and faded for apple in china. >> i wouldn't say it is faded because apple is still kind of -- share in china market and china was the second biggest market for iphones last year. it is extremely broad from a manufacturing point of view as well as consumption. at the same time, we are seeing that globally the smartphone market is slowing down. people who wanted a phone, they have a phone. there's only so much room for growth. the next step would be to kind of make a bigger footprint in emerging markets were a lot of people still do not have smartphones. there is still growth, but looking at the economic situation with inflation being at an all-time high, it has put a damper on the group. once the situation stabilizes,

we should see growth coming from emerging markets. >> guarantee car nationally vonnie: kevin mccarthy has told a wall street audience the house will vote in coming weeks on a plan to lift the nation limit, but not doubt curbs on spending. mccarthy spoke a board room at the new york stock exchange, to reassure markets that republicans are taking the issue seriously. mccarthy accused president biden of refusing to negotiate in good faith. the u.s. has arrested two new york residents and charge 44 people over a campaign to harass dissidents who speak out against the chinese, disparity. prosecutors say they were operating an illegal police station in chinatown on behalf of china's government. they allegedly destroyed evidence when fbi agents confronted them. russia has sentenced a critic of

putin to 25 years in. russian news services reported vladimir karamazov was found guilty of treason after criticizing the invasion of ukraine. it is the harshest sentence yet handed down to an activist. malaysia has reportedly reevaluated an agreement with golden stacks. the star newspaper -- saying the settlement was rushed and raised questions for the deal by the previous government asked goldman to guarantee the return of $2.4 billion of assets. a u.s. court has denied a bid by terraform labs and its founder to block regulators from requesting documents from singapore. it is not clear what records are being sought. the u.s. is suing for offering and selling unregistered securities. he was arrested in montenegro. global news powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn.

shery: up next, g-7 ministers wrap up their meeting in japan without a solid deadline on new coal investments. we discuss how that might affect global climate objectives. this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh

shery: speaking at the g-7 in japan. those discussions ended without a deadline to halt new coal investments while noting nations will have various paths to get the net zero. the latest data compiled shows just how much each g7 member nation lags their targets with japan the biggest laggard. let's bring in david can. why is japan trailing? >> in the aftermath of the

tragic fukushima nuclear accident in 2011, japan relied heavily on fossil fuel power generation to keep the lights on as well as build lots of new coal and gas power plants. japan did manage to restart 10 reactors in 2011, one third of their total capacity. the also rolled out generous subsidy schemes. even still, it lags far behind peers in g7 today. there also does not seem to be a strong commitment from the government to address this near term. by 2030, japan aims to raise its share by just 59% from around 30%. that is the second lowest target after italy. shery: if they are not keen to accelerate that, are they likely to make that 2030 target? >> unless there is a drastic and

immediate shift in policy, there is a high chance that japan could miss the current target. if you look at japan emission reduction trajectory over the past decade and extrapolate that line all the way out to 2030 you get an annual emission that is 45% higher than the government target. to put that in context, italy and france are just 9% higher than the government targets. the difference is largely due to the lack of progress that japan has made in the power and transport sectors. the slow uptake of renewal energy -- renewable energy and the low penetration of electric vehicles are slowing down japan. >> interns of that drastic shift, what does japan need to do to close the gap? >> the first thing japan would need to do is put in place binding policy mechanisms that would deliver its own emissions

targets. if we think about the eu or canada or even parts of the u.s. , these countries all have rising carbon prices that would directly support their emissions targets. in japan, even if utilities miss the government target, there is really no fundamental financial penalty. it would be crucial for japan to introduce some form of compliance mechanism and supporting mechanisms like the u.s. inflation reduction act in order to close the gap with its peers. >> be sure to tune into broadcasting live from our studio in hong kong, you can listen on the apple or bloomberg'sradio.com. this is bloomberg. ♪ 92% still active? seems high.

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it still does. what can you do with spy? ♪ ♪ ♪ shery: the asian infrastructure bank president says multilateral institutions must provide money for highly indebted countries to continue to grow. telling us exclusively what develop and -- development banks need to do to help poor nations. >> the problem has been a big issue for a number of low income

countries. i think there could be different approaches to dealing with these problems. for instance, bilateral debtors and creditors can work them out and multilateral institutions such as the world bank should do very much, in my view, to provide new, fresh money to the highly indebted countries so that they can continue to grow. so on one hand, debt reduction is important. members are working on this for it on the other hand, particularly in poor for demon banks come up providing money to low income countries so that it can sustain the economy is very much important. shery: what about existing restructuring talks?

>> so far as the debt restrug is concerned, certainly there is an arrangement between the creditors and debtors. and their work includes cooperation with governments and i think it is important for -- to understand what are the biggest issues facing these countries and in what way we can come to their help. >> do you think multilateral institutions should be directly involved in debt restructuring? >> multilateral institution's jobs over the last decades have been to provide financing to the developing countries. this is very much important so the sustained financial ability of the -- to provide support is

very much important. the mdb's have these preferred creditor status and enjoy this status so that they can raise funds in capital markets to their lowest possible cost. this is in direct benefit to the borrowing countries. it is very much important for them to play a proper role and protect their preferred credit status and preserve their image in the capital market so that the borrowers can continue to have low-cost funding through multilateral institutions. >> the asian infrastructure bank president there. and no a quick check of business headlines. bloomberg has learned chinese sports apparel maker has raised -- in share replacement. the company sold stock at a

discount in its last close. proceeds will be used to refinance debt and as general working capital. charles schwab executive say the firm can withstand the u.s. banking turmoil while pausing stock buybacks. the company's first-quarter results showed profits climbed 12% from a year earlier, beating estimates. citing regulatory uncertainty, saying it plans to focus on clients in the long term. lack rock will begin selling securities of failed banks, launching a process to help the fbi see afford billions of dollars in assets they picked up from silicon valley bank and signature bank. blackrock's financial advisor unit will launch sales tuesday and continue with the process. >> these are some of the stocks we will be watching when trading opens in korea and japan. we are watching asian shares related to cryptocurrency.

bitcoin dipping below $30,000. -- has offered to buy -- entertainment the creator of angry birds. -- says talks are underway and a final agreement should be reached in a matter of weeks. plus, -- companies releasing earnings today. big interviews coming up today from the shanghai international auto show. stick around for our exclusive conversations with executives from receipt's benz and nissan. i opens in sydney and tokyo are next. this is bloomberg. ♪

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. that and the paycheck.

>> this is daybreak asia

counting down to the major market opens after a session in new york. mixed signals from the banking sector and more hawkish fed speak. we will see how we react to china eagle data. >> the debate 12 watch, but after we saw the yields rising and the dollar rising on the back of firmer fed rhetoric, people are betting on the resurgence of the king dollar. let's see how this is proceeding to the start of trading. >> is really about these doing expectations that the fed may not be cutting into the second half of the year. and that has ramifications across asset classes. but the opening in south korea and australia and want to be opening here of cash treasuries, the two year yield in particular, those rates climbing to around 4.2% in the price action. as investors had to scale back expectations that the fed would reduce the cure towards the end

of 2023. off of that yes we do have the dollar really getting over the past couple of sessions. and the yen as well. it is staying steady now but it has been hovering around a one month low against the greenback. we do understand that that is something that helps the bigger exporting names in japan and the topix here gaining for an eighth straight session today. that is the longest streak that we have seen for the topics and around -- in around 14 months. something that is playing into that are -- a stronger bank earnings in the u.s.. you can see that outpacing the broader gains that we have seen in the early moments of trade. let's change off, because the focus for earnings is starting to yield -- bill. we'll see that with the tech sector, and the nasdaq rally that was seen as a safe haven. jp morgan is saying tech rally is looking overstretched, you cannot expect it to last. but still in the session today,

you do see the kospi coming on fairly flat. in terms of what else we are watching today, it certainly comes down to what we get out of china later in those key gdp figures. also the monthly activity numbers, which are expected to confront the strength of the rebound that is being led by more of the consumers here so that will be a key factor to watch, particular for that country that is more reliant on what we get in china. that is australia. the asx 200 reflect today, but we are keeping an eye on crude. again, it's very much just waiting and seeing what we get out of those numbers due later. >> we have a cautious outlook on the markets and overall, this one is staying defensive. this is a portfolio manager, george, at fidelity

international. is there an expectation that we might see a recession as an inevitable outcome from the market uncertainty right now and how did the numbers that bell was talking about in china, mostly positive today, help? >> good morning and it evening. yes, the view here is that the recession is increasing looking -- increasingly looking unavoidable and when we think about how cycles and and recessions happen is because the fed tightens meaningfully. that has happened. then we typically have some sort of event, a crisis. we already had the banking crisis as of last month. the third thing that usually happens is corporate retrenchment. and that will start happening now that lending conditions will be getting tighter and tighter on the back of what happened last month. and the key thing here is lag because this time around the legs have -- the lag has been

continued more stacker because of policy make response to covid. the initial phase of the lacking focus on things like supply, housing, these things have been weakening, also earnings are starting to get weaker, especially in areas like the u.s.. the next wave that tends to focus more on the consumer and the areas -- yeah, the consumer. and when it comes to china. we do think it is in a better place. if we look on the monetary policy, it is a very very different picture versus the rest of the world. and just the mortgage rates. mortgage rates are different in the other parts of the world. >> so how do you expect the japanese yen to trade? will it act as a defensive when we see those safe haven flows source across that currency?

because we are not seeing any changes coming from the boj governor. >> absolute. when i think i -- of safe havens i think of treasuries like the yen. i have been positively surprised by how they have been behaving, especially last month. last month was the first time that they saw a bid and that is a positive thing to see because you want to look for that in that part of the market. treasuries saw a spike in interest rate volatility and in the past 2, 2 and a half years or so, the spike in volatility has actually meant that treasury yields would have gone up this time around for the first time in a long time, we have seen treasury yields moving lower. treasuries and yen look like more of a defensive play. with regards to the yen, the yen has not been the as a defensive haven for the last couple of years but that is because of the huge divergence on

differentials. i expect the yen to be big, not because of what is happening in japan, yes, inflation is higher, there are? to what extent is sustainably high. instead, i expect them to find a beta because of what happens outside -- to find a bid because of what is happening outside, and the higher probability scenarios attended to that. that will allow them to find a bid. >> the direction of the dollar and how far we have gone for the pullback is the other side of the equation. when you look at this scenario, when it comes to hedge funds, banking, and coming to the end of the pullback, our question is really what factors will most favored the dollar? -- favorite the dollar? >> sorry, i missed it, what sectors? >> which factors will most

favored the direction of the dollar? -- favor the direction of the dollar? >> when you look at how the dollar has been trading with the yen, the yuan, it has really been about the dollar. and now that the fed, essentially, is closer towards the end, this is built on an incremental basis towards the end of the tightening cycle, that is bad news. could the dollar find a bid on the back of what happens? it could potentially, but structurally, i think, in the corridors to come and potentially even longer, we could see a weekend dollar going forward and could get interest rate differentials. >> when it comes to broader ems

and the impact of china, do you think that there is further to go when it comes to the reopening, how do you prefer to get exposure to the china growth story given some of the data points have been better than others? >> so if you want to play the china real pretty story, i think one has to focus on china this time around because the stimulus is different, compared to what we have known and seen in the past two or three decades or so, it is not an investment led stimulus. instead it is consumer driven, which has different remedies cap -- ramifications for the rest of the world. sticking close to china, we see better numbers when it comes to china consumption. what i would like to see more of to get even more comfortable and confident in that part of the market, is essentially consumer

confidence on the rise. i think we are seeing elements of that and the biggest driver of that will be employment, because china has had better employment rates on the back of covid, but those elements are coming down, especially when policymakers and china are becoming friendlier towards smes, and as employment gets better, that will allow consumers to be work company, comfortable, spending more, and that will translate into better earnings for chinese companies. that is already happening. whether you look at earnings, or forward looking earnings. there is a long way to go on that front. >> great to chat with you george as for topless -- s5 paul pelosi. >> we are taking a look at what

we are seeing in the asian automating space, that is actually quite notable, given today we had the nikkei stocks trading to the upside. but what happened is that hyundai, nissan and others have been deemed not eligible for a tax credit in the u.s. and that is the restricted battery sourcing rules taking effect. only eight electric vehicles and other vehicles made by gm and tesla and ford will be getting that credit. we see weakness coming through as a result. that's take a look at another stock that is lower on the early parts of the session, sega sammy, the japanese gaming something -- company. we saw this down 6%, closing 4% to the downside here. it is driving that is that sega has now offered to buy rovio entertainment at a deal of 167

million dollars. rovio is the maker of angry birds. if we change over we can see what is driving the skepticism around the deal, and that is this hyper reliance on angry birds to drive revenue for the company. games dominating -- games from the franchise dominate the revenue. analysts say that they can expect solid cash flow from this but the question is can rovio get any more hit games in its lineup. >> its get to vonnie quinn with the first headlines. >> shary, thank you. kevin mccarthy has told an audience that though house will vote on raising the debt ceiling. but not without curbing spending. he wanted to -- markets to know that rockets were taking the issue seriously. he accused president biden of refusing to -- to negotiate in good faith.

the uss arrested to new york residents, and charts for four people over religion campaign to harass dissidents who speak out against the chinese communist party. federal prosecutors say the two arrested for operating an illegal police station in manhattan's chinatown on behalf of china's government. they also allegedly destroyed evidence when fbi agent confronted them. apple sales in india are said to have hit $6 billion in the year through march as tim cook arrives in the company to oversee local stores. revenue in india grew by nearly 50%. equitable launch, its new stores will open in mumbai and new delhi. tim cook will be meeting with the prime minister unless a. tesla has delayed its latest starship launch with pressurization issues being cited as the cause. elon musk also separately confirmed the issue on twitter. the next launch attempt will

come on wednesday at the earliest. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn and this is bloomberg. >> investors wake up, and raymond yeung will join us to analyze this data. 400 u.s.-made missiles meant to deter china have been sent -- are proposed to be sent to taiwan, we have more details on that next. this is bloomberg. ♪ what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh

>> enrichment fact -- the fed is sounding a more hawkish tone as debate over progress for goes back and forth. kathleen has the latest. what was the message? >> he is not convinced that they

are done, let's remember that the president of the richmond fed is a centrist. he does not tend to be hawkish or dovish. that is why we watching closely. he does not change his mind to easily to quickly. what he is saying here is that he is assured by the easing that we have seen in u.s. prices, that you can see on this chart we have core goods inflation down as core services inflation and even other factors that are making people more confident. housing is the one that powell says he watches very closely. the fed chair. so he also indicates that he is assured by it but you never want to declare victory. he was seeming like he was moving the door, at least as open as he had it before, to a rate hike. markets are starting to price in one more hike of 25 basis points. we will get more guidance on that when they actually get to the meeting on early may and when we hear from powell.

still, a centrist who leans towards the hawkish site. >> things are lining up when it come -- comes to banking in asia. have they won the war against inflation? >> fingers crossed. they have done a lot of things right and they seem to have gotten in that direction very clearly because they are expected to pause now. they have made a lot of these rate hikes since august, which have underpinned repeated stability. currency, very important. remember a year and a half ago when they got hit hard, they are in his -- a position now where there inflation is coming down and that is very encouraging, they are getting closer towards their target and given where inflation is and where the key rate is, they have actually got they are rate positive now. why is that so important. the federal reserve still got the funds rate underneath the inflation rate, not the much now, but still in fact in

stimulus territory. vis-a-vis banking donation which has gotten itself in restriction territory, probably i think my people are not targeting it for currency weakness. i also want to at this story from deloitte, i'm sure you have read it inside and out, they are saying the reserve bank of australia has the economy on a knife's edge and they have prompted a downgrade in their growth outlook. they say they have had the weakest growth outlook since the 1990's. a member of the government was saying that he can't declare victory yet, but he thinks that the cpi inflation in japan is going to be at 2% and stay there in japan. this meant being the former minister of finance, and a

friend of the new doj governor, said that the governor had had his success. i don't think he will go so far as to say it's over. >> kathleen hays there. taiwan will buy as many as 400 land launched harpoon missiles from the united states completing a deal that was approved by congress in 2020. it is part of a package of weapons intended to -- repel a potential chinese invasion. stephen engle joins us in hong kong. what is the impact of the steel? -- this deal? >> it comes at a sensitive time between china and the united states with taiwan at the center of those differences. this deal was approved in 2020, as part of a $90 billion, according to house sources, $19 billion of backlog of approved orders of military equipment to taiwan.

now, this was announced by the pentagon about 10 days ago on april 7, but they did not name taiwan is the buyer. sources say it is indeed the island and that they are getting these mobile, land-based harpoon missiles which are used perhaps to counter naval assaults of the island. it's different from what they have already bought from boeing, the ship-based harpoons. the land-based would be on the terrain of taiwan and could be moved around. they are mobile. again, it's another headline that will anchor beijing and it comes at a time, obviously, that china, right now, is ramping up their military exercises. just completed last week three days of military exercises. now they announced they are going to have a major military exercise off of a province of the loc starting today. they have also warned shipping lines and potentially airlines

flying in that area to avoid the coastal areas this morning up until about noon. i would imagine flights to tangier could be effective. -- could be affected. >> what came out of the final day of ministerial discussion? >> we did talk about the possibility of the forming within the g7 as emmanuel macron went to beijing, had a state visit, had conciliatory messages to xi jinping, and said that europeans could not afford to get caught in the middle between china and the united states and other differences. germany is taking exception to that, the united states is taking exception. see antony blinken -- you see antony blinken with his foreign counterparts, the french minister. that's about optics right now. he said this sitting next to the french foreign minister. the last day has only reinforced the convergent views that we

have on the approach to the most important issues of the day. and right now with the g7 being held in japan, that only the foreign ministers meeting but in a couple of weeks we will get the finance ministers meeting and in hiroshima we will get the leaders summit. issues will be centered around japan -- china and taiwan and ukraine. antony blinken is trying to show a sign of unity among the g7 nations, despite those comments from mr. macron and also the german foreign minister, kind of siding along with the united states and taking exception to comments made by the chinese counterpart when she visited beijing. she said she is even more skeptical now than she was before that visit. she made it clear in china this is her, yesterday at the g7 in japan, we want to cooperate with

china, we want to be partners but we are not naive. >> bloomberg's chief north asia correspondent, joining us from hong kong. we have more to come on daybreak asia this is bloomberg. ♪

christ looking into u.s. bank earnings. charles schwab says that they can withstand the latest turmoil ashley paugh stock buyback. su keenan has been following this since wrigley tory concerns began. >> after the collapse of the three regional banks they are concerned that perhaps regulators may want banks to set aside funds, whatever the reasoning, they have put off any kind of buybacks and they also want to assure their investors and customers that they can weather the storm.

they posted first-quarter results showing interested customers climbing 12% a year ago. deposits didn't slide 11% and they are down 30% from a year earlier but that is in line. check out how the stocks performed. rose almost 4%. very different story for state street, who shares -- they plunged the most in three years after they ms they would grow their permanent investments. the outflows are not over and that is really what investors are keyed in on as bank earnings continue. check out that today sharp. -- chart. they lost a lot before getting up at a ground. assets under management fell 10% from a year earlier, interestingly for state street, they are planning to go ahead with their 2023 share buyback in as much as four and a half billion dollars. you can see the different categories. dealmaking is usually a big area

of focus, but banking health commentary is really a matter of focus right now and these banks are staying the course, but very different reactions in terms of the way investors traded their stocks. >> blackrock is set to offload these bank securities. what is the appropriate -- process? >> it shows blackrock rising in profile as an advisor to the government in terms of the fbi see -- fdic. it was rough -- brought forward earlier in the month. now it kicks off the fbi see loading off a whole bunch of assets that the fdic picked up when silicon valley bank collapsed. they will start selling a lot of the mortgage related tools on tuesday, it is expected to be an orderly process, and blackrock says that the -- they will be ramping up to four days a week,

getting to billion dollars per week. -- $2 billion per week's -- week. wells fargo sold $1.8 billion of bonds, and this is the first of the six major u.s. banks to tap into the corporate bond market since it was rocked. notice the small u.s. bank deposits which dropped off have started to rebound, so it is getting a little bit of sign that the worst may be over. >> su keenan there, and more to come here on daybreak asia. this is when bert. -- this is bloomberg. ♪

>> we are looking ahead to tuesday's data dump of china numbers on to do boo, intesa production and retail sales, due to drop the 10:00 a.m. local time. david analyst joins us now. what are you paying attention to? david: west comes to the gdp numbers, it's because -- of this and we are looking at momentum. what are two quarter, that is one too much. that's what's numbers that cannot last week and a lot of economists scrambling to sum up their forecasts, so you have a lot of updated forecasts coming in on friday and yesterday. it's a a side note another sausage is made, even our own graphics here are dated. we had a median forecast yesterday that is down dated because of the flurry of revised forecasts coming in, which by the way should note, they are mostly to the upside in revisions. but we have is not so much the median, you have the low. i would focus on the high-end of the forecast right now, given how most of the data that has,

thus far, and i have alluded to experts, have come in on the high-end, if not lou passed the highest end of the forecast. 5% year on year. 5% retail sales, quite a significant gap in terms of the range. the range between the low and the high, 4% 11%, it is 7, the median. the citi index is the highest since 2005, which sets us up nicely going into the data release and the expectations because of what has happened recently. that bar is set quite high for this data that is coming out in 90 minutes from now. after you guys. haidi: one of our favorite days, china data dump day. that was our co-anchor david andress. china's economic indicators are providing pretty contradictory signals about recovery, and a lot of surprises. there are still doubts about the

growth outlook and it is fueling debate over how much more stimulus is needed by beijing. if you look at the good pma credit experts, even the property sector is showing signs -- if you look at the pmi, credit experts, even the property sector is showing signs of improvement. let's bring in our chief china economist. always great to have you with us. when you look at the discrepancy between expectations from economists, from the lord to the high-end of expectations in today's data in today's gdp, it shows you the degree of uncertainty. tell us your picture as to how this reopening looks like.

guest: when i look at the merchant data a lot of surprises. credit numbers in the first quarter is at a record high. the construction pmi also, i have not seen that before. since it launched back in a 12 export numbers, as you said, trended positive. taiwan export numbers are also negative. so a lot of these positive supply surprises that cause us to think about with of your underestimating the impact of the reopening. we're looking at 4.2 percent growth, probably above consensus for the first quarter. at the same time if you look at the second quarter, we think that even with the help of the base effect, remake might see an 8% growth in the second quarter,

we would mean 6% growth in the first six months of 2023. haidi: retail sales have been interesting, we have seen the uneven recovery play out for the chinese consumer. luxury numbers, clearly there is strength there, but the rest of the consumer recovery has been in services. do you expect that to even out? >> the social sector has been performing very well. nonmanufacturing pmi, 58 in march. i also believe the export number will be really good. i spent a couple of days in shenzen and grand juror and i saw a lot of people going to shopping malls. of course that is anecdotal. at the same time, the numbers tell us, sales are up 3.5%. i expect the march number would be better compared to last year. there in mind that coming into the second quarter, we had the shanghai lockdown last year.

so the base effect will definitely help to boost the headline number of retail sales. of course we do see a lot of economic challenges, but based on the reopening policy, we see that that has started to reflect in some of these economic updates, including consumption, and the investment numbers as well. shery: economic growth in china is very important for policymakers, there is a pillar of social stability. what are you expecting in terms of unemployment numbers, especially among the youth in the broader economy going forward? raymond: this is a very good observation. we saw the stockpile of the economy with youth unemployment still at 18% last month, and we expect this number will be even higher when the new graduates joined the labor market, of the year. this is the number one concern, i believe, that the state

council will need to address, in terms of how to bring down the youth unemployment. because these are the people who will spend the most of the many, young people tend to spend more than older people. if china wants to get consumption to boost the economy, they really need to provide jobs to the new graduates, and also, they needed to boost their disposable income so they can spend more in order to be consistent with the domestic circulation strategy by president xi jinping. shery: we're also seeing more efforts from china to settle trade in the yuan. we saw brazil trying to look at measures to make this happen. in the long-term, what is the broader implication of this for the chinese economy? raymond: raymond: at the moment, if a look at the renminbi, the report published by the pboc tells me that only 17% of the

goods trade settled in the renminbi last year. the past few weeks, we have seen lots of countries expressing interest in using the renminbi to settle their lateral trade with china. saudi arabia and brazil in particular. they were asking me about would b -- about what would be the implications of petrodollar recycling and whether we would see a petro-yuan. trade settlement is one thing. the other side of the question is whether china has enough for that exporting countries to recycle their export process so they can induce them to use the renminbi to settle trade. overall, i don't expect that will be a complete and entire de-dollarization.

more and more countries will join and they will start to consider whether to introduce the yuan to do trade with china. shery: good to have you with us, raymond yeung, chief greater china economist at anz. let's see how the markets are performing in the early asian session. annabelle: it's quite interesting when you look at all the optimism around china's economic recovery, but in the results of the latest jp morgan survey, any sort of economic beat that we get later today may not be enough to convince investors to add to mainland assets. to look at the factors that would induce them to do so, it would have to come to u.s. inflation. investors want to see it below 5% and they also want to see central banks causing headaches. and what could be more important to traders, that comes down to geopolitical tensions. more than 10% of people on the

survey what a de-escalation of tensions between beijing and washington before adding to this asset group, even more than you can see there, they are interested in economic data set. but when you look at markets investors, what they are most likely to reduce their risk in, you can see in the jp morgan survey, most investors are opting to move out of china. if we get any nerves coming into the markets, well above what we have seen in turkey, frontier markets, and in central and eastern europe. but in terms of today in asia, certainly a lot of investors in this part of the world are very much focused on the data set coming out later -- gdp and monthly activity numbers. we are very much in a wait as we await that, including as we wait for key earnings. it's not enough to convince

investors to get off the sidelines. shery: it was really sideways trading in the u.s. session as well. let's get to vonnie quinn with the first word headlines. vonnie: vonnie: thank you. taiwan is be buying as many as 100 anti-ship missiles to repel invasion from china. the contract for boeing to produce the weapons has been issued by the u.s. navy on taiwan's behalf. bloomberg sources confirmed the deal to deliver harpoon missiles. it comes as china continues to hold military drills around. a. one g-7 diplomats have presented a united front of china days after emmanuel macron's visit to beijing. sources say that it sent clear signals that a chinese weapon deliveries to russia and a military escalation would tr one -- military escalation with taiwan would be inevitable. russia has sentenced a permanent critic of vladimir putin 225

years in prison. russian news services reported that vladimir kara-murza is her guilty of treason and other charges, after criticizing russia's invasion of ukraine. it is the harshest sentence. and a down to an opposition activist. . militia is reportedly reevaluating an agreement with goldman sachs. the start newspaper sites the prime minister saying settlement was rushed and raised many questions. that deal by the previous government asked government to pay 2.5 billion dollars and guaranteed a return of $1.4 billion of 1mdb assets. the hong kong listed -- the hong kong stock exchange is creating new rules were companies would have to report details of transition plans, measure and disclose emissions, and elaborate on the risks presented by climate change. this six to align the market with the rules developed by the international sustainability standards board.

global news, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: the asian infrastructure investment bank president has called for collaboration to solve that issue is for poorer nations. coming up, are exclusive interview with him in a moment. this is bloomberg. ♪ what if we live to 100. i don't want to outlive our money. i keep eating all these chia seeds. i could live to be 100. we work with empower, even if we do live to 100 we don't have to worry.

eh, not worried. take control of your financial future to empower what's next.

shery: take a look at how asian markets are trading at the moment, seeing a mixed picture with the nikkei advancing for eight consecutive sessions, the longest stretch of gains since march of last year. consumer staples and industrials and health care leading gains on the msci. the kospi falling for the first time in eight sessions. we are seeing it drop 0.3%. we have seen the likes of consumer discretionary and also energy stocks leading those declines. energy is under a bit of pressure in the asian session at around the $80 a barrel level. the asian infrastructure investment bank president says multilateral institutions must provide money for highly indebted countries to continue to grow. jin liqun told us exclusively what government banks need to do to help poorer natheir debt.

guest: the debt problem has been a big issue for quite a of low-income countries, and i think there could be different approaches to dealing with these debt problems. for instance, creditors can work them out. multilateral institutions such as the world bank and our institution, should do very much, in my view, to provide new , fresh money to the indebted countries so they can continue to grow. so that on the one hand, debt reduction is important. g20 members are working on this. on the other hand, particularly for the mdb's, multilateral development banks, providing money to their economies so they

can sustain their, is important. shery: how directly should mdb's be involved? jin: so far as debt restructuring is concerned, it is an arrangement between the creditors and debtors. mdb's work includes cooperation with governments, and i think it is important for mdb's to understand what other big issues facing these countries and in what way we can come to their help at this particular moment. haidi: do you think multilateral institutions should be directly involved in the debt restructuring's? raymond: ji -- jin: mdbtheir job in the past few decades has been providing

finance to these countries. the sustainability for the mdb's to support them is important. as you know they have this preferred creditor status and they enjoy this status so so they can raise funds in the capital markets at the lowest possible cost. and this is indirect benefit to the borrowing countries. so it is very much important for mdb's to play a proper and positive role and to protect their preferred status and to preserve their image in the capital market so that there can today to below cost funding through the multilateral institutions. haidi: the asian infrastructure investment bank president jin liqun there are speaking to us earlier. coming from international auto show where top carmakers will

unveil anything from a new passenger vehicles to flashy concept cars. this is bloomberg. ♪

shery: here is a quick check of the latest business flash headlines. bloomberg has learned that a chinese sports apparel maker

antta sold stock at an 8.8% discount in its last closed in hong kong and the proceeds will be used refinance debt. that is general working capital. charles schwab executives said the firm can withstand the u.s. banking turmoil while stopping stock buybacks. first quarter results showed proof i -- showed profit beat wall street estimates. it has says it plans to focus on clients in the long-term. blackrock will begin selling securities of failed banks, launching a months long process to help the fdic offload 114 billion dollars of assets picked up from silicon valley bank and signature bank. blackrock's sale will continue the process later in the week. wells fargo has tapped the

high-grade corporate bond market, making it the first big bank to sell bonds since the collapse of svb. the company raised $3.75 billion from the sale of unsecured notes which mature in 11 years. a series of bank failures in march resulted in higher risk williams and that. -- on data -- a series of bank failures in march resulted in higher risk premiums on debt. haidi: let's bring in bloombergs charlie zhu hu jintao live from the shanghai international auto show. charlie, it's a treat to see these big events now starting to take place in china as well. what will be the things that we are watching for this autoshow? charlie: yeah, thanks for having me. this is the first shanghai autoshow since the end of the covid lockdown so it feels a bit exciting on the ground, lots of

people and cars on display and hundreds still outside the exhibition center in the suburb of shanghai to get into the show and see what the latest models are that car companies are displaying. as you mentioned just now, we had hundreds or maybe thousands of companies who are joining the show. car companies are displaying the latest models. we heard from an industry source yesterday that maybe 70% of evs. lots of evs making their debut is what we are for. behind me is a mercedes-benz booth. they announced the e4 electric version of their maibach, priced at $200,000. it is meant for sale in the chinese market, which is the largest in the world. yesterday volkswagen also announced their electric vehicle for the chinese market. so based on the report, the car

will have a range of 700 kilometers on a single charge. so there competition in the market is heating up. speaking of the theme, this market is the fastest growing in the world and the largest, but price competition is something that everybody is talking about these days. in november of last year, tesla started a price war, lowering the prices of the main models. and a few months ago they lowered them again and that started a price war in the industry. so everybody is trying to bring back market share. -- win back market share. but the profit margin is coming at at an expense, good news for consumers but definitely not for automakers. share prices for chinese carmakers have plunged 70% to 80% in recent years. shery: what are we expecting from japanese carmakers haidi: i

think based on what we heard from them, the future lies in the ed segment. people like toyota, nissan, they used to be the dominant seller in the chinese market. however, because of the rise of chinese players like nio and other local brands, these companies are slightly falling behind. toyota just saw their sales fall for the first time last year. nissan and honda have been seeing declines in their sales for two consecutive years. so these companies are racing to roll out their ev models in order to secure the fastest-growing segment of the market. ev is the answer, it looks like. [laughter] shery: rate, will watching what we can expect on the electric vehicle side of things.

charlie zhu is there. thank you. we have details coming up today from the autoshow. skiffs stick around for exclusive conservations with executives from mercedes-benz, xpeng and mason. "bloomberg markets: china open is next. this is bloomberg. ♪