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asia. >> counting down to asia's market opens. shery: top stories this hour, a cautious move across markets as investors away earnings and comments from fed officials favoring further rate. netflix is -- goldman sachs traders missing out on wall street fixed income boom, sending shares lower. take a look at how u.s. futures are trading at the moment, not a lot of movement after a missed finish in new york. we had mixed signals coming from bank earnings with goldman sachs of falling after failing to capitalize on the fixed income boom at the other compan bank of america did well on that front. the treasury space was a pretty mixed, the 2-year yield higher, the 10-year yield lower. this as we continue to see the discrepancy of where the fed could take rates from here.

the dollar gained ground, we didn't have a lot of movement on oil prices either. we are slightly higher above $80 a barrel. investors trying to figure out where global growth goes from here. where demand for oil goes from here. after hours, what we are watching, netflix, roku, disney, the streaming giants that we are taking a look at. given that flix had a shaky start to the year, but perhaps if you look deeper we may see more bright spots. despite the fact that customers, new clients, new additions were not as encouraging as was expected. it seems the bright spot was asia pacific. haidi: one of the stocks we are watching today, when you take a look at what we are seeing in equity features, it is range bound and subdued today. it essays that traders will look for clarity on the earnings front in the days of head, regional lenders.

the vix is something else we have been looking at, it is at its lowest level since january 2017, but some assorted to say it's a signal of complacency. you need to look at investment flows, goldman sachs says those have been week. perhaps investors not buying into the rally we have seen over the past couple of months. what else investors are focusing on is the results of the latest banc of america survey. it shows as investors are turning the most underweight stocks on bonds since the days of financial crisis. taking a look at where investors are putting their money into. we have gains in bitcoin, above the 30,000 level. we have been walking that since banking stress in march. also tracking the outlook for central banks, something that has been i'd. the euro yen approaching an eight year high.

the ecb looking down three further 25 basis hikes. watching what is happening in bond yields, rising at the front end of the curve and we had more calls for further tightening. so much to pass through, the outlook for earnings and what it means for the state of the u.s. economy. haidi: a lot of focus and it comes to what the feeling is for the netflix story. pairing a steeper earlier decline of 10% in the after hours session after adding fewer than excited subscribers in the first quarter. its revenue outlook for the current three months came in below forecast. let's get more from our senior media analyst at bloomberg intelligence. we saw first quarters subscriber numbers drop. the company keep saying we need to stop being fixated on this metric. >> we do need to stop being concerned on the metric.

the streaming wars is over. the concept of get subscribers at any cost, those days are gone. we have moved to profitability metrics, free cash flow metrics. if you are going to look at not flix's report based on those two items, netflix did very well. the market is still in a bipolar, we are not able to get out of that subscriber mold. you look at netflix is results, you have that knee-jerk negative reaction. shery: what were the bright spots? >> in terms of geographies, asia pacific did really well. we saw the latin american region lose some subscribers. in canada, they had rolled out password sharing, the gains across the united states and

canada were anemic. we also saw them implement price cuts in over 100 countries, most of them emerging markets. a lot of them in the asia region. while management says it will take time for that to have a tangible effect, we will see that. we are seeing growth in the asia region. this is the region that netflix has pointed to as being their major growth story going forward. i think we will continue to see that play out over multiple quarters. haidi: it seems like it would take longer for this subscriber inflection to play out. do expect things to get worse before we see an improvement? >> a quarter to will be very choppy. management has said that the second half story seems better because all of the major pain points should be over. at least in the bigger markets,

it should be done. you are going to see the initial volatility, the initial backlash from customers. then they are going to settle down. that's what netflix has seen in markets where it is already been doing it. expect things to settle down towards of the end of the year. shery: always great to have your insights. goldman sachs traders failed to couple is on the fixed income and anne's but the rest of wall street generated. this contributed to the firmwide revenue that fell short of analysts estimates. on the brighter side, ceo says the worst of the volatility is over. >> as we sit here today, it appears the worst of the volatility is behind us. while it is impossible to predict the exact form of market stress will take, and we won't always execute perfectly, our risk management culture, strong

liquidity, have allowed us to navigate a complex environment while also continuing to actively support our clients. haidi: let's get some more from su keenan. when it comes to the miss out of the fixed income business, what happened? >> normally volatility is a boon for trading. we saw it with citi, bank of america, but goldman's trading revenue is down 17% for fixed income. that was the main reason over all the bank missed. also it becomes the only big wall street banks so far to impose -- drop for that business. we are not being told why, there could be different issues. it is a question for wall street. it was the firm's third best revenue in the past decade, equities trading beat, that helped soften the blow. check out the way investors reacted, they pushed the stock

down as much as 4%. from also said it offloaded ashoka a choque of its roughly 4 billion markets alone but. that was another misstep by the bank into the consumer banking area, they are trying to backstop that. the good part is it freed up 400 million in reserves. profit was higher than analyst forecast, earnings still down 19% from a year ago. you can see the stock taking a drop as goldman announced its earnings. goldman believes the first order was a life stress test. bank of america had a much brighter story. stock was off in a big day, let's go to the ceo and see what he has to say about the stabilization. >> thanks to all the tightening actions, assess investments of the past quarter, deposits continue to perform well.

if you think about it, that's about the same balance we had in mid october of 2022. we have seen these balances stabilize and remain at 34% above where they were prior to the pandemic. >> a strong quarter for bma and could deposits continue to be a key area that investors are focusing on. another thing for bank of america, it joined rivals in setting aside more reserves as a growing number of consumers could not keep up with their loan payments. the four biggest u.s. lenders rode off a combined 3.1 -- $3.4 billion in bad consumer lows. that is a 73% increase from a year ago. shery: to a federal reserve bank presidents see one more rate hike to get inflation under control. as they brush off wall street concerns about a recession. our global economics policy editor kathleen hayes results

with the latest. we've gotten plenty of fed speak, it seems like more needs to be done on prices. >> we will see what fruit this bears in a couple of weeks, we get the early may eating from the federal reserve. that's why -- widely expected in markets that they are opening the door to another rate hike. raphael bostic speaking on cnbc today, he says there is still more work to be done and i am ready to do it. i determined central banker. markets are pricing this in right now. the key rate is that 2.75% to 5%. this is the camp that raphael bostic is excited to be in. do another 25 basis points and then be done it for a while, you can pause. he is playing down recession risks, the economy is still performing quite strongly.

he said it has momentum, and what about bank tensions? he says they seem to be subsiding, when he speaks to banks they are saying we are not seeing depositors taking out their money. he is sure that is not an issue. green light to hike their rate again. he sees the funds rate going up to about 5.5%. because he does think the fed needs to do more. inflation is still high, he wants the fed to go ahead without worrying about recession. he says that wall street, this is what he said to reuters, wall street is very engaged in the idea that there will be a sit -- recession. that is in the way he would read an expansion like this. this labor market is still quite a strong, prices have come down, but they are still high. as far as he is concerned, green light to go.

and it comes to the banking spillover that has died down, he says if you look at the st. louis fed stress financial index, it is at zero. if there was a crisis brewing, it would be spiking up to four or five. he has assured across the board that there is wendy of room to raise the key rate. he things it will have to go another 50 basis points on top of the 25. to affirm voices for one more hike in a couple of weeks. haidi: let's get you to vonnie quinn with the first word headlines. >> fox news has agreed to settle a voting machine makers a defamation lawsuit over the 2020 presidential elections. dominion voting systems says the network agreed to pay at 780 $7 million, half what it had claimed. many and accused fox of airing bogus claims that it rigged the election against donald trump. fox argued -- protected as free

speech. janet yellen is set to deliver a speech about economic relations with china. her remarks are scheduled on thursday in washington ahead of a planned trip to aging. ties between the two countries have been frayed over taiwan's spying allegations, technology security and russia's invasion of ukraine. g-7 countries have vowed to support ukraine for as long as he takes. it follows a meeting of top g7 diplomats. the millis turn -- military has called for greater engagement in china to stabilize issues. french president emmanuel macron is seeking china's help to bring russia and ukraine to the negotiating table. bloomberg has learned that macron instructed his foreign policy advisor to work with china's top diplomat to establish a framework for future negotiations. sources say the french president sees talks happening as soon as

midyear if all goes well. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. shery: still ahead, netflix sees a stronger second half as it cracked down on password sharing. technologists shares their outlook. wealth consultant ruth tells us why they think the u.s. will avoid a recession and a risk assets will perform well. this is bloomberg. ♪

>> we are encouraged, the growth figures for the first quarter cannot, four .5% ahead of expectations. our forecast is that china will grow at 5% and we think there could be some upside risk to that protection if the chinese

consumer comes back. haidi: patient develop meant bank chief economist on china's economy. my next gaze is asian markets will benefit tremendously from china's growth while other nations finish their tightening cycles. ceo at wealth consultant group does is now. do you hold that view in light of the domestic activity and gdp numbers we had this week? does that tell you we have seen a robust recovery? >> i'm not sure if i would use the word robust, but certainly in the positive direction. i would expect to that the government in china will continue to stimulate their economy throughout the rest of the year. i agree with that last segment that you showed. i would expect that china numbers will look great, that will be good news for the far east pacific regions. and for overall global growth. haidi: you say it is looking

lonely as someone who is positive when it comes to the u.s. consumer. what gives you that optimism and how do you gain exposure to that? >> work base case is still that the u.s. will likely not go into recession. a big part of that being that the consumer is still spending. while we had an economic slowdown, it's until the summer months that consumer will be tested with the remainder of whatever stimulus money people have. i think we've added to consumer discretionary sector using etfs recently, we have added to technology. we think that while the fed may raise one more time, there is a good chance that will happen, after that we go to a pause. if anything, i would say the fed would were lower -- would lower rates by the end of the year.

hopefully the interest rates on the longer run are lower, not because we will fall into a recession, but that inflation comes down faster than what people have predicted. shery: you're not worried about the high concentration and evaluation and growth stocks? >> growth stocks which led the decline last year, with some of the numbers that we've calculated, more have doubled. the bounceback that we saw in the first quarter was something that was not surprising. the evaluations are going to be justified as potentially interest rates a pause and go down. and the big tech stocks that are leading the market this year are safe stocks to own if we go into a recession or a slowdown in the economy. those companies have done a good job of protecting their margins by doing layoffs and managing their expenses.

that's a good sector to add to, but we are sticking with quality growth and technology. shery: what would you expect more stimulus to come from the government when economic numbers have been positive so far? >> with the government being shut down for as long as it was, china is in a position to show good growth numbers. with the situation with the u.s. and the politicians looking at the china relationships and always, china wants to show the world that they are the second largest economy and they are back on their feet growing again. and that they can be a good trading partner. i think they will try to do as much as they can to position themselves for global growth and with their trading partners. haidi: good to have you back. ceo at wealth consulting group. if you missed any part of this

conversation, go to tv go. you can find today's top stories on dayb go. you can also customize your settings so you only get the news. this is bloomberg. ♪

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>> ajinomoto says it made build an additional manufacturing base overseas to produce more of his signature tip making film. asides from its seasonings and food products, the japanese firm also makes the ajinomoto build up a foam which helps connect chips to circuit boards. the ceo told us exclusively he wants to see profits generated

equally from the companies food and science divisions by 2030. [speaking foreign language] >> there are two divisions, the food business and the amino science business. in fiscal 2021, two thirds of the profits was generated from food, and one third from amino acids. in fiscal 2030, while expanding the food section, we want the amino acids division to grow significantly in order to have the profit for each division to be balanced and this repeated equally. i want to make this company one that is neither just a food company nor an amino acid company. >> as part of the material for supporting data centers, your film is widely used. how would you like to take it as a business chance and go move forward? [speaking foreign language] >> we believe that high performance computing, including chatgpt, will roast

significantly over the medium to long-term. to that end, our ajinomoto buildup film has high market share that has been certified as the de facto standard. or business scheme allows us to manufacture and meet the needs of our customers without large investments. it will cost about ¥25 billion, but the idea is to make an investment that can firmly meet the demand for high-performance semiconductors. we will keep up with the evolution of that technology. >> last year you announced a ¥17 billion investment into abf business. and you increase that to ¥25 billion earlier this we are. how fast do you think that the needs will catch up with your investment and whether you are thinking of additionally investment in this field? [speaking foreign language] >> we have build good relationships with customers using high-performance semiconductors.

there was a time and we concentrated on one fairly large company. but now we are widely used by a variety of customers, including high-performance chipmakers. abf is used less than 25% in pcs recently, compared to 45% act in 2017. that's because high-performance areas, including servo, data centers and chatgpt are growing significantly and that is beneficial to us. we will work closely with these companies that excel in high-performance computing. we have relationships with various customers, not only in japan, but also in silicon valley. we have a high speed develop and system with our customers, and i believe that is one of our strengths. shery: speaking with bloomberg's grace how long. take a look at how we are setting up with half an hour from the start of trading across major markets including sydney, tokyo and seoul. flat at the moment. cindy futures up by a 10th of

1%. this is a set for a mixed open, we have seen volatility retreating broadly, that is playing into the not much of a move we are seeing. kiwi stocks looking flat as well, hugh k futures and not moving much. we are watching the dollar, it is slipping lower against all g10 appears, seeing the flattening of the yield curve as we continue to get the fed speak and mixed equity session, trade is occupied by earnings, including the banks and netflix. we would be talking about that with technologist, a deeper dive into

>> you are watching "bloomberg daybreak: asia." we are counting down to the open in japan, korea, and australia. the focus today, very much on the subdued outlook we have for stocks.

we are seeing in equity futures, very much range bound. quite flat. we are hearing from fed officials and the atlanta fed president, rafael bostic, saying he favors raising rates one more time. then also the st. louis -- his st. louis counterpart saying he wants to get rates within the 5.5% to 5.7% range. looking at what markets and investors are focusing on in particular, japan is one of them. we have seen a performance of japanese -- japanese stocks over the past year.

also improving corporate governance standards and you had that endorsement from warren buffett a couple of weeks ago, so they are favoring this benchmark in particular. in terms of any sort of catalyst, direction, the focus is certainly on earnings. we have been parsing through the numbers from the banks overnight. looking at what we can expect from netflix, given the disappointing start to the year, we will be watching those korean drama studios in particular at the open of seoul in 30 minutes. shery: let's discuss the results with the president and chief analyst at technalasis research. we saw the plunge in netflix initially. right now we are seeing a little bit of paring back with the declines. profit free cash flows seem to be not bad despite the declining growth numbers.

what do you make of the results? >> the results were actually not bad. there was a bit of a hit, but remember a year ago they had a subscriber decline. subscriber growth is a positive. and remember this is the first full quarter where they did some of the cost -- the password blocking, so that people who had accounts that were shared were not allowed to do that, in certain countries. they did it in new zealand and a couple of latin american countries and in canada. and overall they said yes, you see a decline right away because people get upset. then they start to come back. obviously the big question will be what happens here in the u.s. one of the things that came out of the earnings is in the u.s., they are going to make that move to put those policies in place in the second quarter. the expectation is there may be a dip initially because there's

a lot of shared accounts across the u.s. but eventually i think a lot of people will come back and of course we had the ad--- have the ad supported tiger as well. -- have the ad supported tier as well. shery: the rollout of password crackdowns here in the u.s. was delayed. will that make a difference in the months ahead? >> i think it will. obviously there's a huge amount of that happening here. i'm sure there are other countries as well. there's been a huge base of netflix subscribers here. i think we are going to have a big impact. more likely obviously into q3. it's going to be a couple of quarters before we can really see the impact. but i do believe it will be there. is going to be interesting to see. the other thing of course is they have this ad supported tier.

they are likely going to grow that advertising base. they pointed out in the shareholder letter they are happy with what they are seeing so far and i think the expectation is we will see growth there that offsets that slightly lower cost. if people are ok with that, especially if that's their only option, if they got cut off from a password perspective, that is where the company expects the revenue growth to occur and they still think they can hit their phone -- they're full year numbers for 2023. -- their full year numbers for 2023. haidi: the trend seems to be the subscriber inflection story will take longer to play out. should we stop fixating at this metric and look at profitability? the company says that we should. >> we are in an incredibly competitive streaming world.

we have disney plus that's grown tremendously, hulu, youtube, lots of other regional players that are around there. it is really going to be tough because a lot of people who are used to streaming switch back and forth depending on the hot series and what have you. that is why i think those subscriber numbers are going to go up and down. if we start to see them continuing to grow on a revenue basis, advertising becomes an important revenue. as soon as you add advertising in the mix, you have to drop just subscriptions. it is going to change the overall picture from a revenue perspective. people are still going to look at it for the next couple of quarters i think. but over time, by this time next year, for sure it's going to be revenue only story. haidi: when it comes to geographic sources of growth, where are you most interested in? china still remains a source of optimism. >> across the board, it was interesting, in one of the

charts in their newsletter, the amount of streaming across the world as a percentage of total tv viewing is still small. like 34%, 35% in the u.s. and u.k., and asia, high single digits. there's a lot of upside in regions like asia and china. netflix has been really good about doing region-specific and multi language content. that is obviously -- that has obviously helped them quite a bit as well. that will help them potentially if there is a writer strike here in the u.s. and hollywood has been rumored for scripting content that is english based. we have seen some of those cultural things crossover. "squid games" is a good example of that. we could see other things like that as well. haidi: a physical 100.

there's so much when it comes outside of english language offerings at the moment. bob, it is a challenging time for sure when it comes to a lot of these tech starlings. even apple. -- tech darlings. even apple. we are seeing the push into india and these headsets -- offerings as well. what is the outlook for a company like apple that is so much higher on the maturity cycle? what is the next big thing? >> the challenge travel of course course is we have seen both pc's and smart overall on a global basis and in all the regions go down. pc's in particular. smartphones as well. as well as apple has done, it is still a big chunk of their revenue. obviously you will see that challenge. people are simply not upgrading as frequently. the latest phones look like the

previous months. we are not seeing something dramatic. we have not seen a foldable for apple. they big bet is this next dr/ar headset. the problem is, expect a $3000 price point and very limited set of applications. this is going to be one of the first apple products in a long time, if it comes out as people are saying, that may not have an immediate hit with the consumer. it may be much more of a niche kind of market for several years. that i think will be a challenge as well. i would be curious to see how the market reacts to that. that is not typical apple behavior, and i think people will have a hard time reconciling with that if it plays out as rumors highly suggested is going to. haidi: visit typical apple behavior that they don't have a clear strategy for chatgpt either? my question is also broader, if you take a look at everyone scrambling to get a piece of that pie, who are you most compelled with in terms of the

growth and monetization story? >> is a great question. -- it's a great question. it is rather surprising that apple has not said anything at all. we have seen sort of the traditional voices, siri and alexa and what have you are really starting to be pushed kind of by the wayside, because we've seen what you can do with these other kinds of generative ai models. i think right now, what microsoft has been doing has been very impressive. they've got google on their heels and scrambling. there was discussion of samsung thinking about switching to bin as its primary default search engine -- bing as its primary default engine away from google. what microsoft is doing is driving a lot of the industry forward and we are seeing a lot of smaller companies and innovation. this is an area, generative ai, i am about to launch some research on it myself that is going to be a huge story for the next couple of years, i believe.

haidi: make sure you inbox us with that one. always great to chat with you, bob. let's get you to vonnie quinn with the first word headlines. >> nato says it wants to strike a deal with china overrules outlining the responsible use of ai and other disruptive technologies in the military domain. young stoltenberg says they don't regard china as an adversary but it does pose challenges tornado alley was and security -- to nato values and security making it important to engage with beijing. he says the agency wants to conduct more investigations into the crypto sector but does not have enough staff. he described the industry as having been built up around noncompliance with existing rules. he has repeated calls for trading platforms to register with the agency. >> in terms of digital assets, we can certainly use more resources.

there are more things to look at and investigate then we -- than we have people on the staff to do. >> jamie dimon is facing a two day deposition in a case that accuses jp morgan of benefiting from jeffrey epstein's sex trafficking. a victim and the u.s. virgin islands are suing jp morgan over its ties to abstain. new york has posted 340,000 millionaires last year. the list compiles -- compiled has a u.s. leading other countries such as london and singapore. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg.

♪ shery: coming up -- france is a listing china has helped to push for peace talks between russia and ukraine. the details, ahead. this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates, exemption certificates or filing returns. avalarahhh ahhh

ahhh ahhh haidi: emmanuel macron doubling down on his recent chatter engagement push and approaching

vision with a plan that could lead to talks between russia and ukraine. let's bring in our north asia correspondent, stephen engle, in hong kong. this is interesting, given that they have their own ukraine peace proposal, what are we hearing from macron? >> it also comes on the heels of the brazilian president also going to beijing on talking about supporting some sort of peace effort for russia and ukraine. china has floated its own idea on how to get the parties together. but that was why they dismissed it as too vague and perhaps freezing the battlefield as it is at allowing russia to keep its territorial gains and that is not acceptable right now. so how are they going to come up with some sort of feasible peace plan?

he failed in his attempts to get xi jinping to at least have a phone call with zelenskyy of ukraine. you have xi going to moscow and talking with vladimir putin but xi has not talked with zelenskyy. it is a difficult task. the big question here is what kind of support would macron have with its allies. essentially what we are hearing is that macron has test's foreign policy adviser to come up with some framework agreement that could be used for eventual peace negotiations that he would like to see start at least by the summer -- by this summer. given all the issues we just talked about, macron going to beijing and getting criticized by european allies for being too conciliatory towards beijing as well as saying that essentially europeans should not get stuck in the middle between china and the u.s. in disputes over taiwan. it is a big test that macron is

positioning himself. the french language is the language of diplomacy. he's tried to extend that to the beijing influence -- the wheels of influence on russia and ukraine. shery: top diplomats in japan for the g7 will be following those conversations. what were the key takeaways? >> again there was concern that there could be some risks forming within the g7 because of the french position, because of macron's comments in beijing that there would not be unity on their messaging. clearly coming out of that, over the last three days, at least i communicate -- the communicate tried to stress that there is unity on issues surrounding ukraine as well as taiwan. the communique condemned the war in ukraine and vowed support for as long as it takes and slammed moscow's "nuclear

rhetoric," saying they recognize the importance of engaging candidly with china. there are two more g7 meetings coming up the next three weeks or so. the finance minister in early may followed a week later by the leaders' summit in his notion -- in hinosha. tomorrow janet yellen will give her most extensive policy speech on china, economic policy engagement versus confrontation, what is the balance on the priorities of the u.s. towards china? haidi: stephen engle there. a top u.s. official is urging japan and south korea to follow through with commitments to repair strained ties. the national security council senior director also says the biden administration should resist the urge to intervene. when over the longest time the u.s. has wanted its two allies

to play nice, will washington finally play mediator or not? >> that is certainly the concern among policymakers in the u.s., that the relations between korea and japan might relapse after the president of south korea met with the japanese prime minister last month in tokyo. it was a quite rare summit, in that there had been years of strained ties between the two countries. the president of south korea had displayed determination to get things going with japan again, considering the supply cooperation between the two countries doesn't really matter to some of the chipmakers in south korea. and also some of the material manufacturers in japan. but most of all this matters to the u.s. quite a lot because the u.s. wants to do a lot of things

together with japan and south korea, which are its two allies that hold a lot of american troops there -- host american troops there. they want help from both of these allies. shery: what do they mean when they say the u.s. is trying to restrain itself from getting involved in diplomacy? >> anytime there's a high-level dialogue between south korea and japan, it has led to a couple of years of rapprochement and repairing of ties. after a while, there's some domestic political situation or some resentment from the public that eventually led the president of south korea or the leader in japan the kind of robot the agreement between the two countries -- roll back the

agreement between the u.s. had to step in. -- between the two countries and the u.s. had to step in. to broker a deal to get things going together. then after that, there was japan imposing some curbs in 2019 leading to ties being strained again. there was on-again, off-again improvement in relations between the two countries and the u.s. wants to just invest more resources in doing other things rather than having to come back again and again to get the two sides to talk again. shery: a key unifier has been north korea. any comments on pyongyang? >> he did say that every missile test conducted by north korea over the last year has been a provocation and a violation

of sanctions against north korea, but he did also make sure to let the world know that the u.s. is making its efforts both privately and publicly to get back to the table but so far kim young not been responsive. -- kim young own has not been responsive. haidi: much more to come here on "bloomberg daybreak: asia." this is bloomberg. ♪

shery: new york is again taking the top spot when it comes to the number of millionaires. we are talking about being one of the wealthiest cities in the world. this would be about 340,000 millionaires last year, according to investment migration from henley and partners. this, really helping the u.s. top all other countries with 10 of the 50 richest cities in the world. new york is not followed by tokyo, the bay area, london, singapore. the annual survey, now looking at 97 cities in nine regions around the world. but we are talking about the number of high net worth individuals surging 40% in that 2012-2022 period here in new york. haidi: sydney, just squeezing

into the top time spot there. you see shanghai and beijing rounding out the top 10 as well. hong kong has actually dropped behind the likes of singapore. we have seen the highly restrictive measures when it comes to covid. we have seen a tightening grip from beijing when it comes to a lot of regulations and policy really driving this mess exit is -- this mass exodus. we have seen hong kong dropping 27% in terms of the number of millionaires there between 2012 and 2022. very interesting. we have seen similar trends, in terms of investment into singapore and property markets across the two cities and the exit is -- the exodus of talent that we are seeing as well. we will continue to monitor that as we get the chinese open, weather that is going to make

meaningful impact when it comes to the return of wealth across a lot of these chinese cities as well as hong kong. take a look at the stocks we are watching. it is looking like a pretty flat to mixed start to trading. we had a mixed session for the u.s. open. big earnings to decipher, including the likes of netflix. we will be watching the big asia tech companies, after we saw that pretty shaky slow start to the year by netflix. missing a number of expectations and subscriber growth dwindling. also watching ajinomoto.

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shery: we are counting down to asia's major market opens. reaction to the earnings season underway here in the u.s.

mixed results coming from bank of america, goldman sachs, and more hawkish fed speak. [laughter] >> surprise, surprise. haidi: a lot of this, coming back to the strength of the consumer. what the next week's numbers mean when it comes to demand going forward. do we need to stop fixating on the subscriber growth part of the netflix results? let's take a look at how this will play out into the market open. belle: we have the opens of japan, south korea and australia upon us. we've been watching the two year yield in particular. it held fairly steady at 4.2%. you can see it coming online in that range. part of that focus will come down to what we heard from fed officials. the outlook coming from bank of america, the bank of atlanta president, profile bostick, told

cnbc he favors raising rates one more time, holding them above that 5% level for a period. his counterpart, jim bullard, saying he wants rates in the 5.5% to 5.75% range. certainly investors are weighing off the expectations for the fed. it is also being felt in the euro yen this morning, now looking to trade at a yearly high. wj plans to keep policies -- the boj plans to keep policy settings unchanged. in the stock space, a weaker yen, supportive for japanese equities. the nikkei, flat this morning. man group, turning positive, coming down to improving corporate governance standards. that will lead the topix

and its outperformance against global stocks. in korea, we have the kospi coming online. we are seeing the index fractionally higher here. investors are looking into emerging markets in asia for opportunities in aberdeen and fidelity. the bank of korea could be one of the four central bank's and asia to start to cut rates -- banks in asia to start to cut rates. inflation fears are running high in the u.s. we will be watching netflix, linkedin. a quick check on australia -- very earnings focused, looking for more clarity and the outlook. the vix, dropping down below the 17 level. star entertainment has brought up its flagship said in a casino

for review. haidi: shery: let's bring in our next guest who is overweight on equities especially outside the u.s.. with us now is the chief investment advisor at the bnp paribas wealth management. but to have you with us. -- good to have you with us. we are seeing revenge consumption coming into play. if you like china, what are you looking at? a shares? what part of that market do you like? >> actually, we like both, a and h. we have been seeing a lot of investors that are still cautious. but i think this is actually good, to know people are still cautious and we jump into markets before everybody goes in. i think for now the chinese market is still far from private. with a better than expected economic data, especially in the

coming months, we do see china is gaining more momentum to recover. also, in terms of valuations, we have been seeing it is not an externally low-level. but compared especially to the u.s. market, chinese equity and valuations are still reasonable. i think overall, for the chinese markets, we think for now, especially when we look at a lot of foreign investors, they are still underweight, so that means there's still a lot of room for that to increase exposure and china. and also for a shares, domestic investors, as we all know, frazier markets, it tends to be driven -- for asian markets, it tends to be driven by retail investors. they are still pretty cautious. we need to move before the retail investors. shery: even with that major

stimulus coming from beijing and the growth numbers we have seen so far, you'd think there is a substantial potential for upside in the chinese markets. >> yes. we do think so. first of all, as we mentioned, the valuations remain very attractive. for now, we could say that is still under owned. also when people still be cautious -- when people are still cautious, in terms of fundamentals, china's fundamentals have been improving. we do look at the earnings as well. the earnings obviously -- we are coming to the earnings season very soon. we do expect good earnings in the coming weeks. shery: outside of china, you're mostly bullish when it comes to non-us. is japan a market that you are

interested in right now? >> yes. we are also positive on japan. i think especially on the banking sectors, we all know the japan -- that japan has been in the negative environment for years. we are not saying that they are going to raise interest rates anytime soon. but in terms of the direction now, they have the inflation, they are moving towards more tightening. they may do something with the u-curve control. especially for banks, when they see yields going up, this is a very good environment for japanese banks. shery: in terms of -- haidi: in terms of worst-case scenarios that didn't play out, we are seeing so much positivity when it comes to the euro, equities, economic forecasts as

well, all improving. if you take a look at the euro stocks picture, a 50 year high at the moment. when it comes to recession risks, they have come down significantly from both the u.k. and the broader continent. what are you liking in terms of exposure to europe at the moment and how much further does it have to run? >> we actually like both the eurozone and the u.k. i think especially in terms of the financial sectors that were very positive. freddie cs crisis -- for the cs crisis, we saw financials, but we think that is overdone especially as i also mentioned this is the same rationale for the japanese banks. european banks have been in the negative interest environment for a long time.

now they are raising interest rates and it could mean the profitability for banks has actually increased tremendously. so we do think the selloff during the cs prices will give us good opportunities to enter into especially the european financials market. yeah. haidi: grace tam there with us. let's take a look at some of the movers we are watching right now. >> we are taking a look at these korean companies here, trading a little bit lower this morning in the early moments of trade. eight minutes i went to the session -- eight minutes now into the session for seoul and tokyo. we have seen netflix paring some

of its losses. the big focus, the subscription numbers, missed wall street estimates, adding 1.7 5 million customers in the first quarter. what is notable of course is the asia-pacific region does continue to be the biggest source of new customers for netflix, adding 1.4 6 million customers in this region in the quarter. this is the state of play for those names. let's take a look at what we are seeing in the airline and aviation space this morning. we are keeping an eye on those airlines stocks. united airlines have said they will be seeing increasing international travel, lower operating costs. pushing second quarter profits above wall street estimates. finally let's take a look at what's happening with star entertainment this morning, the australian casino company. the company has put up its flagship segment casino for review this morning.

it plans to cut 500 jobs groupwide and canceling executive bonuses this financial year, freezing salaries. the company has also flags underlying earnings for financial 2023, lending somewhere between 280 and 310 million aussie dollars, lower than previously forecast. a big drop down of as much as 11% in the very early moments of trading for sydney. shery: let's get to vonnie quinn with the first word headliness. -- headlines. >> and assessment from russia's government says officials raised concerns last year about becoming too dependent on chinese technologies. european officials say the report highlights chips, network devices, and electronics as areas of particular vulnerability. moscow struggled to advance technology domestically and has been cut off from other markets after its invasion of ukraine. g7 countries vowed to support ukraine for as long as it takes

in its fight against russian forces. it follows a meeting of top g7 diplomats and japan. they reiterated support for the peace plan of ukrainian president volodymyr zelenskyy. the ministers also called for greater engagement with china to stabilize relations and urged a peaceful resolution of taiwan related issues. the french president is seeking china's help to bring a framework for future negotiations. he sees talks happening as soon as midyear if all goes well. fox news has agreed to settle a voting machine maker's defamation lawsuits over the 2020 presidential election. dominion voting systems says the network agreed to pay $787 million, about half of what it claims. demeaning accused fox of airing bogus claims that it rigged the election against donald trump. fox argued that is broadcasts

were protected as free speech under the first amendment. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. ♪ haidi: still ahead -- we speak to the ceo of mytheresa on consumer spending. he joins us later this hour. plus, netflix says they see a stronger second half following a shaky start to the year. we get more analysis, next. this is bloomberg. ♪

shery: two federal reserve bank presidents see at least one more rate hike get inflation under control. our global economics policy

editor, kathleen hays, joins us. what was the message? >> the message is, jobs not done -- job's not done, got more to do. so many officials have signaled their willingness and readiness. the president of the atlanta fed said today there is still more work to be done, and i am ready to do it. doing it for bostick means, the labor market is strong, the economy is still growing, performing strongly. bank leadership is telling him customers are not calling to, should i move my deposits? should i move my money out to a bigger bank? he thinks acute bank tensions are subsiding. the market is pricing this in. this is not a surprise. the question is, what happens next? is looking for a pause. 25 basis point an pause --

and pause. jim bullard, also urging more fed rate hikes. you've got to get the funds rate up to that 5.5% to 5.6% range. he doesn't see a recession ahead. he thinks wall street has got it wrong, very engaged in the idea that there's going to be a recession in six months or something and that is not the way that you should read an expansion like this. jobs are still growing and wages are still rising. inflation is still high. when it comes to the banks, again, don't worry. the st. louis fed said, if people are bracing for some kind of banking turmoil, that index would spike up to 4% or 5%. right now it is at 0%. he takes great reassurance in that. if there is no doubt it out that a rate hike is coming, certainly they will be pushing for it. may be that is more and more the

consensus. haidi: that was kathleen hays. the other story that's really preoccupying investors is the netflix effect, the disappointment when it comes to the numbers and the big drop in the initial reaction. we have come off those lows. some of these korean content production names, down by just about 3% for astory. netflix after hours now, pretty much let. -- flat. let's get more with chris palmeri in los angeles. we have seen this initial reaction raised. what is the reaction from investors after the numbers? >> this seems like a replay of

last year when they started the year really slow. the subscriber numbers disappointed. they suggested the second quarter was also going to be a little late and the stock took a dive -- light and the stock took a dive. they said, don't worry, we still got all these initiatives, advertising is continuing to do well and we are starting to crack down on password sharing. they delayed that a bit. they were going to start that in the u.s. now they are going to do it in the current quarter. they were more reassuring. i think that is what we are seeing in the stock price. shery: tell us more about the delays to cracking down password sharing here in the u.s. and once that happens, what sort of impact can we expect on the company? >> this is something that really began in latin america last year. they are trying to encourage people to pay a little bit more to allow their friends or family members who don't live in the same house to subscribe.

of course as a way of generating more revenue for the company. netflix has said they have almost 100 million households that are not paying for their service, because they are sharing somebody else's password. it is notable that latin america was the only big region in the last quarter where subscriber growth was down. maybe there's a negative reaction to this plan. but netflix is making all the changes to its business model and lowering prices in over 100 countries and trying what they can to reignite growth. haidi: livestreaming is a challenge. did we hear about the "love is blind" snafu? >> they said the technical glitch which caused so many people to not be able to see the show and the delay will something they had introduced to try to improve the service. [laughter] obviously it didn't work. they described it just as a bug. they remain committed to the

live event business going forward. shery: chris palmeri, with the latest on netflix, the senior editor in los angeles. thank you. goldman sachs traders failed to capitalize on the fixed income bonanza the rest of wall street generated last quarter, contributing to firmwide revenue that fell short of analyst estimates. ceo david solomon says the worst of the volatility is now over. >> as we sit here today,it appears the worst of the volatility is behind us. while that is impossible to predict and we will always execute perfectly, the risk management culture and capital position have allowed us to navigate a complex environment while also continuing to actively support our clients. haidi: let's get more from bloomberg's su keenan. how are they justifying this? >> no answer. it is part of the mix. it is an interesting issue,

because goldman sachs is the only major bank to miss out on the windfall that typically falls on these trading desks when there is a volatility we recently saw. fixed income trading unit, seeing revenue fall 17%. $3.9 billion versus expectations of more than $4.2 billion. bank of america, citi, jpm all blew it out of the water but goldman somehow missed. it was the firm's third-best trading revenue the past decade, so traders still have something to take home. equities trading beats. also another misstep for the bank, backing out of that, freeing up about $400 million in reserves. goldman sachs just dropped at the start of the trading day, down some 4% for pairing is losses. in contrast, bank of america, and the green. it did really well. they blew it out of the water with fixed income.

traders headed out of the ballpark, delivering a windfall so large, it covered the rising cost of the bank's bad loans. and the ceo says things are starting to stabilize. take a listen. >> as we take the tightening actions of the fed, the alternative yielding assets investments and instruction the past quarter, our deposits continue to perform well, and the quarter of $1.9 trillion. if you think about it, that is the same balance we had in october of 2022. we have seen the balances stabilize and remain 30 -- remain 34% above they were prior to the pandemic. >> bank of america's deposits fell more than expected. it lost some but it means a lot of the investors who were scared by the failure of smaller banks moved money into larger banks such as bfa and that offset people taking money out due to inflation and seeking higher yield income elsewhere. outflows and deposit growth

continued to be a key area of focus. bank of america joined rivals in setting aside more reserves as a growing number of consumers are not able to keep up with loan payments. the four biggest u.s. lenders wrote off a combined 3.4 billion in bad consumer loans in the quarter. that is a whopping 73% increase from just a year ago. back to you. shery: you can get around above the stories going on today's addition of "daybreak" --e dition of "daybreak" on your terminal. you can customize your settings so you get the news and the assets that matter to you. this is bloomberg. ♪

shery: here's a quick check of

the latest business flash headlines. hsbc's largest shareholder has kept up pressure on the bank by urging a strategic restructuring, publicly calling for the creation of a separately listed hsbc asia business. the chairman says they have made numerous suggestions over the past two years to management accusing the lender of refusing to engage in discussions. apple is racing to build upgrades and software for its upcoming dr/ar headset. the offerings will include gaming, fitness, and collaboration tools. the roughly $3000 headset is set to debut in june. ajinomoto, considering building an addition many fracturing base overseas to accelerate the production of its signature chipmaking film. the japanese company is a

dominant supplier of the product which helps connect chips to circuitboards. shortages contributed in the early days of the pandemic. >> our business scheme allows us to manufacture and meet the needs of our customers without large investment. it will cost about ¥25 billion. but the idea is to make it an investment that can firmly meet the demand for high-performance semi conductors. we will keep up with the evolution of that technology. haidi: checking in on futures in europe at the moment -- dax, sitting at a 50 year high. european stocks more broadly advancing to that 14 month high. earnings season is kicking off. that could prove to be a hurdle with some of these downgrade fears. we did see global fund manager'' survey say more than 70% of

respondents see mild downside when it comes to european earnings in the coming months. that is a much better set of expectations than even just last month. we did see really some of the travel and leisure and banking shares are performing in the last session. we will continue to watch whether we can keep that stretch of gains going. coming up next -- g7 diplomats vowing to support ukraine for as long as it takes. we get the latest from the meeting in japan next. this is bloomberg. ♪

haidi: we have really seen a little bit of a fall as

we see these economic conditions deteriorating. a contraction of .7% or just about .7%. some of the contributions to the leading index include gains or losses across the stock index. commodities pricing from the rba as well as things like dwelling approvals, monthly hours worked. we have seen some deterioration when it comes to some parts of eco data coming out of austria they are mostly leading to the cost of living concerns. property prices have been coming down. we did here in the most recent meeting the rba considered a hike before ultimately deciding on the pause, with the assessment that the full effects of rate hikes so far is still to be felt -- are still to be felt due to the lags. the question is out as to what we got from the rba but certainly the door is still slightly ajar to further tightening. shery: just about 30 minutes now into the session for japan,

korea, and australia. so far we are seeing investors are looking really subdued, sitting on those sidelines today. we are not seeing any sort of major moves across bonds, fx, and equities. a lot of different factors for investors here. earnings coming through from more of the wall street banks. netflix, amongst those. you can add to that what we are hearing from fed officials. the atlanta fed president, telling cnbc he wants one more hike rates to stay above 5% for some time. his counterpart at the st. louis fed, jim bullard, saying he wants further rate hikes. a lot for investors to consider in the morning session. we are half an hour into the trading for the kospi, the nikkei, the asx 200, really flat in the session. star entertainment, sliding

today, the entertainment giant and australia announcing plans to cut 500 positions across the group, also freezing salaries and cutting executive bonuses this financial year. let's take a look at trading volumes, which does reiterate the low conviction in the session today. the blue dotted line protected turnover for the day versus the 20 day moving average, the line and darker blue. we are around 20% off the trading volumes. where we would be typically at this point in the session today. let's take a look at where the gains could really come from. still investors, looking toward china. we are continuing to see the signals of economic recovery there. we have the shanghai composite within half a percent of a 20 or 13 month high. this chart here, showing the breath of the rally we are seeing in hong kong, the members holding above their 200 day moving averages.

the question is whether investors are probably accounting for these rising geopolitical risks. haidi: let's stay with china. french president macron doubling down on his recent engagement in the country and approached beijing with a plan he believes could lead to talks between russia and ukraine. for more, let's bring in our chief north asia correspondent in hong kong. what's president macron proposing? >> i think most would probably agree that getting china on board would be the easiest or perhaps the most successful way to broker some sort of peace and ukraine. -- in ukraine. macron was unable to convince xi jinping to talk with zelenskyy. they have not had a conversation since the war started more than a year ago. if micron is going to pitch some sort of framework --

macron is going to push some sort of framework to work with china stop diplomat, how are they going to do that if they are not engaged with the ukrainians? the chinese have already floated their rough framework for a piece outline for negotiations. but that was quickly dismissed by kyiv as well as the u.s. and other allies as being a bit too vague and essentially freezing the battlefield and freezing territorial gains in ukraine. where it is now. that is a nonstarter. it is a tall task. but macron had a fairly conciliatory tone towards china on taiwain, on ukraine and other issues when he visited, which wrangled other members and obviously the u.s. that potentially did spill over to g7 foreign ministers meetings held over the last three days in japan.

an effort by the french to broker peace perhaps by as early as this summer, according to sources. but it's a tall task. haidi: what is your take away when it comes to the meeting of top diplomats that just wrapped up in japan, the g7 meeting? >> i think from the beginning, they wanted to make sure there was not disunity. you saw the press conference with antony blinken sitting next to his french counterpart, the foreign minister, essentially saying they are on the same page when it comes to how to handle china and of course the war in ukraine. they did issue a communique condemning russia's war and that support for ukraine for as long as it takes. also slammed moscow's irresponsible nuclear rhetoric. the ministers also said they recognized the importance of engaging candidly with china while also expressing concern about beijing's growing nuclear

arsenal of its own. it calls for talks with the u.s. and china on arms control. we did get a statement coming out -- the ministry of foreign affairs and beijing dismissed the g7 foreign ministers communique as being "full of arrogance and prejudice and intent of to contain china." that is an allegation beijing has made about the u.s. trying to contain china, and we are going to get perhaps janet yellen, the treasury secretary's most expensive speech yet on thursday on u.s.-china economic relations. sources are saying her remarks will seek to balance a confrontation with engagement. stay tuned, thursday, janet yellen, long speech from china. haidi: stephen engle there with the latest. let's get used to vonnie quinn with the first word headlines. >> nato says it wants to strike a deal with china over rules outlining the responsible use of ai and other disruptive

technologies in the military domain. jan stoltenberg says they don't regard china as an adversary but it does pose challenges to nato values and security making it important to engage with beijing. the sec chair says the agency wants to conduct more investigations into the crypto sector but does not have enough staff. he described the industry as having been built up around noncompliance with existing rules. republicans have criticized his aggressive stance on crypto. particularly his repeated calls for trading platforms to register with the agency. >> in terms of digital assets, we can certainly use more resources. there are more things to look at and investigate then we have people -- than we have people on this staff to do. >> jamie dimon is facing up to the deposition in a case accusing jp morgan of knowingly benefiting from jeffrey epstein's sex trafficking. a victim and the u.s. virgin islands are both suing jp morgan

over its ties to epstein who was a client of the bank from 1998 to 2013. jp morgan says the plaintiffs know diamond has no relevant knowledge, accusing them of pursuing the deposition for media attention. new york has topped the list of the world's's wealthiest cities boasting 340,000 millionaires last year. the list compiled has the u.s. leading other countries, with 10 of the 50 richest cities in the world. new york is followed by tokyo, california's bay area, london, and singapore. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. ♪ shery: coming up next -- china's consumer spending fueled gdp growth in the fourth quarter. we will get the outlook for the luxury retail market next with the ceo of e-commerce platform mytheresa. this is bloomberg. ♪

shery: take a look at how asian stocks are trading at the moment. most sectors, in the red right now. the only two sectors gaining, materials and financials. the nikkei, now reversing eight sessions of gains, halting the longest winning streak since march of last year. the kospi, reversing declines we saw yesterday, and gaining ground -- actually getting

ground. haidi: we continue to look at the china numbers in the next step of the reopening. the economy growing in the fastest pace of the year and the quarter. we did see retail sales climbing 10.6% in march. the strongest growth since 2021. our next guest runs a german luxury e-commerce platform, mytheresa. the company is refocusing efforts to regrow their business and china with business now reopened. joining us from shanghai is ceo michael kliger. the chinese consumer has some the strongest rebounds. some stocks have really performed over the last few weeks and months. have you seen that turnaround in your business when it comes to high-end consumption? >> we have always seen that the high-end consumption has been the most resilient throughout

many ups and downs over the last three years. one key driver for luxury come sentient is of course to have the occasions -- have the vacations, going out. we have seen a nice recovery. step-by-step, it is really in sync with being able to travel and being able to go out. that drives the need for luxury wardrobing, which is our core focus at mytheresa. shery: when it comes to the revenge consumption or reunion dressing, lots of catchy ways to characterize this rebound, do you think about how linear it is in terms of how sustainable that robust rebound straight out of the reopening really is? do you expect that to be a consistent trend of consumption? >> we do expect it to be quite consistent. if we look at what happened in the u.s., with revenge spending as you called her, with pent-up demand that we saw there, for

continued courts -- it continued quite consistently for a while. we see consistent spending of the upper and highest level of luxury consumers. shery: what are chinese consumers buying? as it luxury products -- is it luxury products, experiences? did covid-19 change some of the spending habits? >> that is an important point. we do see across the world and in china what you call "experience matters." it's not just buying and owning a product. it's the whole experience. so buying for travel. buying for going out, meeting friends. buying for family festivities. so what is i think a much more bigger package. remember luxury at the core is

an emotional buy. so having an experience with those products makes the emotional reward -- the emotional benefit from buying this luxurious clothing or accessories even more so. we has a company also focus more on providing these types of experiences for our top customers. we invite them to events in europe to meet the designers and have two-day experiences at cote d'azur and the ivory coast. it is a real trend all over, after tough months, people want to enjoy life. and luxury is part of it. shery: how does your business and china perform right now, as opposed to before the pandemic? do you have any expansion plans in the country? >> we have been in china with

websites since 2017. we stated in our last earnings report that calendar q4 was of course very tough. whereas q3 saw 20% plus growth. we have indeed very big plans. we increase our local team last summer -- increased our local team last summer. we celebrated the addition of our china designer program. we collaborated with four new chinese luxury designers that produce capsules for us. we launched all of those products this morning and we see that is the start of more intense engagement with our customers here in china. also through our personal shoppers. we have plans. and the most important is more on the ground engagement with our top customers here in china. haidi: when it comes to global merchandising value for china, what is your forecast and your

target in terms of the global percentage? do you anticipate there to be challenges given the difficulties in servicing domestic chinese mentor luxury customers shipping from overseas, shipping from europe? >> you are absolutely right, we have a cross-border model. we ship from europe, which takes time and requires the customer to wait. our focus has always been to provide product -- exclusive products from luxury brands that you can actually only by at mytheresa. -- buy at mytheresa. that is a trade-off. you get products that you can only get or are only available on mytheresa. you are right. the chinese consumer has the highest standards, so competing here and servicing that client requires also to meet those standards. that is also why it is so

important to have teams on the ground really servicing the clients, servicing the basics, same time zone, language, cultural understanding, that is where our local team is really focused on. but our expectations, across the board, is that the online luxury will continue to rise, and we have seen that over the last 10 years. we expect and predict the online share will continue to rise. shery: got to have you with us, michael kliger. the ceo of mytheresa. with his views on the luxury market in china. the biggest crush on the country has returned after last year's -- car show in the country has returned after last years hiatus with the showcasing of latest models to counter the rides of domestic many fractures -- manufacturers.

we have been talking about the presence of electric vehicles and how ev's are the big thing right now. what else are you seeing? what is the biggest take away? does it feel exciting to be back at the shanghai international auto show? >> yes, it is. lots of loud music. lots of fanfare. i'm talking about the ceremony held by all the carmakers yesterday to mark the sale of the new product -- the new products. mostly ev's. everybody basically in the industry is here, from volkswagen to mercedes to japanese cars like nissan and honda. and chinese up starts, everybody is launching a new product. according to what we heard from the conference organizer, nearly 70% of the new products launched here are making their debuts here and are ev's. the market is rosy. another interesting phenomenon

is european countries and japanese automakers considered relatively late comers to the china ev party are also joining the foray. yesterday mercedes launching their new electric version of their super luxury model, priced at $200,000 each. nissan is also doing something similar, volkswagen is launching their id7, a model to rival tesla's model 3. one of the most popular ev's in china. the competition is heating up what is attracting people is the rosy prospect of example, by some industry estimates, the car sales in china for ev's are going to rise above 8 million cars this year, up from more than 5 million, despite all the

lockdown sound the phasing out of the subsidies. everybody is also making ev's one of their top growth strategies. for example nissan's ceo told us yesterday in an interview that 80% of its lineup will be ev's by 2030. porsche said something similar, defining electron mobility is a key strategy for the company's on the road. -- defining electro mobility as a key strategy for the company down the road. to the surprise of many people here, tesla is not here. the world's largest ev maker does not have a booth in the flagship auto show held in the world's largest and fastest

growing ev market. we don't know why. but you may remember that two years ago there was an incident that attracted a lot of unwanted headlines about the u.s. carmaker -- a consumer who claimed to be an owner of a model3 jumped onto the top of the display car and told everybody that her father was almost killed because of the failure of the brakes. also the company recently set up a vicious price while in the industry, everybody is lowering their price, pinching profit margins. shery: we do have breaking news at the moment. we are seeing the first major bank to sell additional tier one bonds, this of course as the first major global bank to issue such that since the collapse of credit suisse last month. perhaps another sign the global

financial turmoil triggered by the failure of svb is now starting to ease. we are hearing smfg has priced perpetual no second they called for five years and two months at a spread of 571 basis points, the 10 year spread, as well. this is bloomberg. ♪ go optimizing data. go efficiency. go results. emerson's plantweb digital ecosystem is the brain for smarter, safer and more sustainable performance. go plant go. go boldly. emerson.

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haidi: the crisis at star entertainment is deepening. they are slashing jobs and putting the property under review and morning that market -- warning that market conditions have worsened significantly. angus, what are we hearing? >> good morning, haidi. the update from star makes for a tough reading if you are from the casino company. it is cutting jobs and freezing salaries for nonunionized workers. also putting its flagship casino under review, considering structural alternatives for that casino. the context of this is this is a

casino operator that's been in crisis. last year, the casinos were found to be unfit. [indiscernible] >> angus whitley, with the latest onstar entertainment. that is it from "bloomberg daybreak: asia." we look ahead to the start of trade and shanghai, hong kong, and jen jen. standby for bloomberg markets china open. this is bloomberg. ♪

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yvonne: 9:00 a.m. in beijing and hong kong. welcome to bloomberg markets china open. a cautious move across mare