>> good morning, welcome to daybreak australia. ana good evening from new york,. it am shery ahn top stories misr

misses quarter estimates. annabelle: bank of japan officials are weary of tweaking their yield curves soon after the banking crisis overseas. , the biggest banks little signs of strain. shery: australian -- australia said to release the findings of an independent bank review recommending a split board handle monetary policy and governance. u.s. futures under pressure the open in the asian session. we lack clear direction in today's session, finishing almost unchanged. we had investors gauging corporate earnings. we've got the fed beige book showing the u.s. economy stalled in recent weeks. a different tone from a we saw the previous report, which came before the banking turmoil. we have the treasury selloff across the board. this followed through from what happened with guilds overnight, given the u.k. inflation came up

above expectations. investors are thinking the boe will continue to tighten. the dollar was higher. we had pressure on oil prices which we continue to see in the asian session, around $79 a barrel. that was a reaction from the fed beige book. we had the weekly eia inventory data showing the fuel to month is lackluster. we're following the bank earnings as well. morgan stanley rising their wealth unit, beating expectations. what we are watching, tesla after hours. as we said, they missed on the profit, we saw that squeeze in the margins given we continue to see those aggressive price cuts. at the same time, we had seen automated gross margin coming in below expectations earnings-per-share,, barely missing, $.85, missing estimates. in context, this year to date, right now, we have seen the stock rally more than 40%.

after hours down a bit over 4%. haidi: let's get a bit more when it comes to tesla earnings. bringing in david welch. we did see shares down in after hours trading. what did investors not like about this? david: with the company of 18% revenue growth it was a backorder if you were an investor. they don't like the impact of the price cuts. margins are down to an estimated 19.3%. they have been up above 20, as high as 20% in some quarters in the past. that was one of the great things, tesla has great pricing power. now, with what seems to be relentless discounting, they have given away a lot of the profit margin. on on -- on the analyst call elon musk says the decision they made it is better to have more

volume than margin. it seems like that is the motive for the company. they will do what it kate -- takes to keep margins going. they have built more cars and they have delivered which was not the case that means there is some slack in the system and they may have to keep discounting. they have a couple of plants one in austin texas that is not at full capacity. there could be more production that they may have to discount to sell. you have inflation, high interest rates, threat of a recession, other factors outside of what tesla is doing, that could threaten the ability of sales at more discount. shery: elon musk getting the earning sales call saying it is high time for tesla to sell cars in the global market. he's planning the delivery event for the cyber truck in the third quarter of this year. many analysts were banking on the cyber trucks. what are we expecting? david: the cyber truck could be

a growth vehicle for them. it has been a long -- long-awaited it. everyone is waiting when it will come out, it is a different vehicle compared to now. they have two sedans, crossover suvs, put americans love pickup trucks. the cyber truck is not an unusually -- unusual one. it will be different than what rivian, and ford and general motors are selling. even the electric versions. we will see how it does. it has enthusiasm. the tesla brand is powerful. it is something they can rely on for growth. i think it is anticipated by the analysts, they talked about autonomous services, namely self-driving, potentially being ready. that can be something for future growth, and also energy storage outside the car, stable energy, big batteries that would store energy off the grid so renewables could be used. that is another business he is talking about, trying to keep the narrative going that it is

not just a car company, that they have other technologies for revenue. the big story, if they are going to get growth reenergized, it would be the cyber truck. shery: david welch with the latest on tesla. we monitor the earnings call, ongoing right now. morgan stanley's profits fell in the first quarter due to a drop off in dealmaking, but managed to beat expectations things to a jump in bond trading. let's bring in sally bakewell, who leads our u.s. finance team. what were the key takeaways? did we see a similar picture to other lenders? sally: it was a tough call for morgan stanley. they saw its profits drop 20%. in its investment bank and wealth business and managed to beat expectations. its wealth business is interesting. the bank's cfo said in the earnings call that this 4.6 trillion unit saw 20 billion of inflows into its products amid the turmoil, from the regional

lenders collapsing in march. that is a trend we have seen across the bigger wall street banks. jp morgan, for example, in the immediate aftermath of the collapse, it saw 50 billion in deposits. citigroup saw just under 30 billion. bank of america, saw big influx. these things fed into the earnings and it helped them generate higher net interest income, which is helpful for -- from a rates point of view. haidi: what are the key takeaways when it comes to first-quarter numbers? kelly: interest rates is a big one. they managed to ride this wave of aggressive rate hikes to generate more net income and it helped the traders who were able to capitalize on the volatility that the rates moves brought. we saw for a number of banks that saw a in charge-offs. they set aside more in provisions to cover bad loans. we can take away indications of

how they view the economic outlook and the uncertainty of a looming recession. we got a bit more insight into the rescue of first republic. if you recall, 11 big banks came together and clubbed into this 30 billion of deposits to help prop up the sailing lender. some of the banks alluded to that, and have been pleased to help restore stability to the financial system. haidi: bloomberg's sally bakewell. also, with our top stories, an overhaul of australia's top central bank is looming as the government is releasing the findings of an independent review. recommendations are expected to be agreed to, some which require changes to the rba's operating loss. let's discuss with our operating reporter, who has been watching closely. in so many respects, this will be a seismic shift for the rba. on the other hand some of the

proposed changes will bring into line central banking norms. >> we are going to see the rba going in line with other central banks that is playing catch-up. for the treasurer these are low hanging fruits. i don't think that there will be any controversy around any of these recommendations that we have heard about. for example, regular press conferences, fewer meetings, the big one is floating the boat and having one for governments and monetary policy, which is one of the biggest criticisms of the rba. then, there are some other recommendations around board appointments as well. it looks like low hanging fruits for the treasurer, and stuff that needs to be done, and should have been done before the pandemic. shery: does this have implications for the future of the governor?

swati: look, it does. because the treasurer had said that he will look at the findings of the review and decide what he wants to do with the governor. we have seen the past two criticisms of governor philip lowe with three year extensions, so they did 10 years. the low is expiring in september. the treasurer will announce in june what he intends to do. some economists and some people that we have spoken to say, given the board shakeup, and given that there is a lot of change that is coming up, the treasurer might want to renew the governor's -- for some level of continuity. it's up to the treasurer to decide what he wants to do. a change of treasurer will mean everything about the rba changes, from the board structure to the head of the

bank. haidi: our bloomberg economics reporter swati pandey. let's look at how we are shaping up for asian markets. aussie markets we're watching for the changes to the rba. what do you think? annabelle: it is not just about the rba. the other big story is what is happening with the bank of japan. we had a big scoop in the last couple of hours telling us what we can expect from the first policy meeting decision that will be held next week. a couple of headlines dropping. we understand from sources that policymakers are unlikely to scrap their yield controlled stimulus. they are likely to want to keep that cap on the 10 year yield. they are still around the .5% level, we have been testing in a variety of different ways in the market. what's driving the decision is really coming down to the banking jitters that are playing out. we understand the boj is a bit wary with lenders in the u.s. and europe to make big changes.

we just got in the last half hour or so, the results coming through of our latest survey of 47 different economists looking at the decision next week, nearly 90% of them say we cannot expect changes. they are looking at the june meeting as when we could see some sort of ship. that is the big story. changing on and taking a look at what we are seeing across assets, the yen has a bit -- has been a bit under pressure. you can see just how range bound we are for yet another date in futures. kiwi stocks online, to the downside. a lot to pass through in terms of earnings and what we are hearing from fed officials. haidi: check of how we are setting up to the markets. >> evergrande has come under fire from china's two main exchanges for failing to publish its 2021 earnings. the shanghai stock exchange and shenzhen stock exchange took

disciplinary action. the major unit of evergrande, for the delay. its changes says it will notify the china's security regulatory commission to record the disciplinary action. the federal reserve's beige book says the u.s. economy stole in recent weeks with hiring and inflation slowing. the latest report marks a step down from the previous one published in march before silicon valley bank's failure. it forces expectations of the fed a pause rate hikes, followed in increase at the next meeting. the u.s. supreme court extended a temporary hold on new restrictions imposed by a texas federal judge on a widely used abortion pill. the court is waiting on the biden administration to put the restrictions on hold. they argue that the court will create regulatory chaos. the justices have until friday to decide how to handle the

case. thailand's opposition party moved forward, is surging in opinion polls. the group says it wants to reclaim a decade lost to military backed rule. its leader tells us that they will introduce sweeping reforms to revitalized -- revitalized southeast asia's second largest economy. >> it is a big hit i -- head and very small legs and arms. we need to do three things. be militarized, monopolize and decentralize. that's my 100 day agenda. >> global news 24 hours a day on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries around the world. i'm vonnie quinn. this is bloomberg. shery: still ahead, more from our interview with thailand's opposition party leader. he tells us how he plans to reclaim what he calls the countries lost decade. first the bank of japan officials are said to be wary of tweaking or scrapping yield curve controls, details of our exclusive story, next.

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>> it is likely we will see at least one more, possibly two more rate increases. that gets you to high-five, 6% interest rate. whether it is a moderate recession or if we dodge the bullet. it does not matter much. what matters is if inflation is tamed. you have to go much higher, and into a deeper recession. shery: james gorman talking about his expectations from the fed and impact on the economy. our next guest says u.s. equity markets have rallied on the belief that the fed may change course. she disagrees and thinks there is more volatility ahead. riverfront investment group, senior market strategies, rebecca felton joins us now.

good to have you with us, we are expecting a tough earnings season as well. what are your expectations of where the s&p 500 goes from here, perhaps as the lobar on earnings right now is a good setting to perform? rebecca: thank you so much for having me. we believe in the near term as we navigate through the earnings reporting period which has just begun. there will be a lot of choppy days. we are starting to hear company management, even though they beat earnings, they are starting to talk about pricing pressures. we've been fortunate that margins had held above the 11% rate. but that is something that is going to be key in order for the market to move higher, once we get beyond earnings season. shery: that's the thing. costs arising. inflation continues to be sticky. how difficult will it be for the

fed to change course? rebecca: we don't see that happening throughout the year. when you look at some of those variables that do not fluctuate as much as food and gasoline prices, housing was the single largest contributor to the number for cpi last week, jumping over 8% year-over-year. those things don't necessarily fluctuate as quickly. we believe that those types of trends are troubling, when you think about what the fed is trying to balance, here. haidi: where do we go when it comes to the growth sensitive stocks -- rate sensitive stocks? it has been a fair run-up, when it comes to tech. do we expect more volatility in the spaces? rebecca: i believe that earnings season in the near term will be the driver, regardless of which sector it will be. the way we are positioned is really quality growth, as well as adding back some value, i.e. sectors that play into the

economic recovery. the more cyclical. we have a barbell. we still have exposure to make a cap tech because of the continuation of quality in earnings and revenue growth. but we also have added back energy, so materials, mining, we have some devices in health care services within the health care space. so, what we're looking for, pay dividend can grow the yield, strong balance sheet, strong cash flow trends. it's a quality game for us as we look out in terms of the next three to six months for stockpicking. haidi: what fixed income? how are you positioning for opportunities there? rebecca: we are stillweight. we're holding onto a bit of excess cash. the way the portfolios are positioned is more short-term. when we have higher yields, we want to add fixed income in greater magnitude as we move

further into the year and believe rates will continue to go up. we'll take advantage of that. shery: when you look at valuations -- [laughter] where do you find bonds at this point? rebecca: it is hard to say if there any bargains. when you think about the s&p is sitting at forward earnings. so, we have not been looking for bargains as much as we have been willing to pay up for consistent earnings in revenue growth visibility. that is why we are still playing in tech, and of course energy and materials. those are not inexpensive sectors but we believe it is worth it to sit in those names as a get more clarity around where growth is going to be for the remainder of the year. haidi: it is interesting you

acknowledge the valuation gap, for a lot of investors, and makes international more compelling. what are the risks you see? what would be the catalyst for adding more international exposure for you? rebecca: what we would want to see is a resumption of solid earnings growth. they are still having recessionary tendencies from country to country, when you look at their economy. the situation in ukraine overhangs. that is not getting any attention. what we want to see is a real resumption of earnings growth before we really go back to a more heavyweight it -- heavyweight in our portfolio and develop international. haidi: always great to have you with us. rebecca felton, senior market strategist at riverfront. you can get around roundup of today stories at daybreak, you can go to dayb , you can get

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haidi: we are getting breaking news when it comes to the production of rio tinto, up between $21 to $22. seeing for your coming in at $8 billion. that is in line with expectations. in line with expectations as well. copper outfit for the first quarter missing expectations by a margin. iron ore shipments are hefty. the ceo is saying that they have seen really some significant gains when it comes to first quarter shipments across the iro

n ore business, the highest first quarter shipments they have seen. we have seen witness when it comes to iron ore, after chinese authorities are going to cut unreasonable price gains, to crack on market speculation. we have seen the downside when it comes to rio tinto, and the big minors. in terms of the shipment updates, the first quarter shipments, surging 16% as it ramps up production at its new major australian mine. the exported 82.5 million tons of iron ore, in the three months to march 31. a miss when it comes to copper production. let's take a look at some of th other headlines. shery: barclays, asking half of its trading belts after revealing a paperwork error. the think announced it made a

$591 million blunder by selling more structure notes and etm's it registered for. berkeley stop issuing -- berkeley stop issuing, after the filing mistake. credit suisse has filed its for $40 million lawsuit against softbank in connection with the collapse of greensill capital. they have engaged in legal spats, after the filing of the claim. this is the first legal move from the swiss lender. greensill was one of one major scandals that knocked confidence in the swiss bank. hsbc said proposals from ping an for minority listing of its asian businesses would destroy shareholder value and mean lower dividends. the pain rejected. the chinese insurer suggested a partial listing of its asian unit. hsbc described the plans as a financial engineering approach that misunderstood the company.

coming up next, the adjusted earnings report from wall street banks following the regional banking turmoil. hear why our next guest things the first quarter results will be the best this year. this is bloomberg. ♪ ins owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network, with no line activation fees or term contracts... saving you up to 75% a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities™.

shery: the boj governor is expected to maintain the central bank's policies next week with officials set to be weary of shifting gears, after recent global banking turmoil. our global editor kathleen hays is here with the exclusive story. our pog -- boj team in tokyo has

learned the latest findings of what we can expect. kathleen: no doubt this boj team under the new governor, has not been seen. they have been seen less making any tweaks so soon in this term. what's important is this is something we have not heard officials apparently have said. they have said it to our team. they're worried. they're not quite sure what all the fallout will be from the banking crisis, turned into turmoil, turned into central banks being weary. this is something we are seeing around the world. in a bloomberg survey that was done before this very important news was broken by our team, there were already 87%, of 47 boj watchers, that said no policy move, not yet, maybe a tweak, according to 11%. 40% said they would wait until june, to see if super inflation

has been steadily sustained. that is what governor kuroda, the former governor, has set for some time. the new governor seems to be moving in the same direction. this is the outlook -- this is the outlook. banking turmoil is what we will be watching. shery: the fed is wary of the bring -- banking turmoil having an impact on the u.s. economy. kathleen: yes. it comes out three weeks before the policy meeting, the beige book, they do a survey in the 12 district banks of economists -- economics. this beige book says they they see credit -- they see credit accessing through the 12 districts. several districts noted banks tightening their lending standards. i would assume that is more than half. beige book also saying consumer spending flat to down slightly.

the rate of price increases are slowing. that makes you think may the pause, when you look at some of the things we are seeing by the fed, some people are leaning towards a consensus of a hike, that may boost to a certain extent, the possibility of a pause. very important. austan goolsbee, the newest member of the fomc, the new, since january, president of the federal reserve bank of chicago. he did an interview on npr national radio in the u.s. he says he is watching the impact of tighter credit on the economy. he says be patient, be prudent, if banks are pulling back it behooves us to pay attention to the data, and how much of our monetary policy job is getting done for us by credit conditions. that's one fed bank president saying, we should be a bit more

slow in our move. it will be interesting when we get the results of the meeting in a couple of months, to see how much weight that took. others like jim bullard have said, yes they can see the potential credit tightening, but they see an economy that has high inflation, strong labor market, and they don't sound ready to pause. haidi: our global economics and policy editor, kathleen hays. morgan stanley ceo dismissed fears about the u.s. banking sector, even after the lender reported a 20% slide in net profits in first quarter. >> we are not a banking crisis -- in a banking crisis but we may have a crisis among some banks. i believe strong regulatory intervention on both sides of the atlanticled to the -- atlantic led to the cauterization of the damage. it's not remotely comparable to 2008. haidi: our next guest says u.s.

bank earnings for the first quarter are likely to be as good as it gets for 2023. whalen global advisors, richard christopher whalen here with us. we saw the big lenders sailing through the quarter, despite this being a quarter where we saw the collapse of three smaller lenders, coordinated banking rescues. is the crisis over? or is this the fact that we are seeing a lot of the concerns to do with smaller lenders benefiting the bigger players? >> that is the narrative. the narrative is wrong. the numbers reported by the big banks show that they are dealing with huge structural change. it is an old base for a larger been going back 100 years. business deposits did not earn interest. business customers today are asking for money because they can get 4% for 90 days. the competitive environment is extraordinary. the u.s. consumer and also

business customers are not afraid to ask, as they may have been in the past. as soon as they perceive that it is value, they will ask for it. you're going to see big changes in the structure and deposits in the united states this year. you are seeing it. jp morgan and bank of america are chasing citigroup in the top 10 banks in terms of their increase funding costs. that's not what people expected to your point and come in earlier. everybody thinks the big banks are the big advantage. haidi: credit deterioration is an area of concern. we saw that in the latest lot of numbers. are you somebody who thinks there is a credit event, or a risk of a credit crisis, a credit crunch on the horizon? christopher: after 10 years of quantitative easing, which tended to suppress credit costs, because it forced asset prices

up, housing particularly. now you see a normalization of most asset classes, other than the family homes, particularly commercial real estate is fully normalized in terms of loss rates. you're going to see significant default activity in the commercial side. think of it as different. 2008 was about the four family homes, residential properties. this time commercial exposures will lead the way. they are different because they are private, often times, you don't see the details initially. you're going to see the restructure. if you read the press, it focuses on commercial assets in the united states. it's active. as kathleen notes well, new york is an active place in commercial real estate. shery: the fact that morgan stanley got a nice surprise from

their investment side of things but not so much from the net interest income side of things, is that telling you a broader narrative of how difficult these short duration businesses are? christopher: we wrote about that. i think it is good and bad. on the one hand, you did not see the big market losses for morgan stanley, goldman, citi to some degree. they manage their business for a short duration. you look at somebody like bank of america which keeps a lot of them -- the 30 year mortgage product, it is very long-duration, well towards 20 years. all of these banks are different. i think the dealers are advantaged to some degree when there is business to be done. in the first quarter, you had a lot of volatility, at morgan stanley -- and morgan stanley, they'll benefited from that. the markets have normalized a bit. loans for consumers for a house today are of -- are a bit over

6%. that's the way to supposed to be. for the last year, as you know, the markets were badly disrupted. you have benchmarks well above deposit rates, we have not seen that since paul volcker. the banks will have to reprice their business. you see them out today, advertising well into the fives, for one your deposits. -- one year deposits. everyone is thinking the big banks will be at an advantage. no every bank will have to compete for funding on price. shery: what does that mean for the smaller, regional banks? christopher: it depends. if they have a good relationship with their business customers they will be fine. but they're going to have to pay them. that's the difference. i think every bank is going to be different. first republic got attacked, because perhaps it was perceived to be not as robust in terms of funding. they were also a big issue were

of mortgage securities. -- issue -- issuer of mortgage securities. they do not want to see another issuer of securities down. the banks are adjusting. i heard about western aligns today, which is an interesting company -- western alliance today which is an interesting company, they are downsizing the bank. they put 10% of total assets available for sale and took a fair value write-down on the assets. they will sell them. the banks that have the wherewithal and the earnings, and the capital, to take low coupon assets and sell them and reinvest in higher assets, i think they will be the winners overall. if you sit with it and you just keep that even though it is underwater at a couple of points, it will hurt your earnings. over time. it's almost a replay. haidi: i wonder if you see any

change when it comes to the regulatory outlook. there has been soul-searching as to whether this was a failure of regulation, of failure of supervision, what happens from here, what should happen? christopher: you saw during the hearings, when being congressman were asking -- big congressman were asking the chairman for supervision, whether they had done a cost-benefit analysis, or how they thought about how markets will be affected by fed policy. the answer is no. the folks make it up as they go. they try to find out how much fed target increases worth in terms of market intervention. we're living through this experiment. banks are going to have to adjust, if the balance sheet runs off, dollar for dollar, every time a treasury dollar redeems on the fed's books, a bank deposit disappears, because they have to refinance that bond. that investor buys a bond, it disappears.

the systems cannot contract quickly. that is why the competition for funding is going to intensify. third quarter, you and i are going to be talking about credit, and credit cost, especially for consumer. you already see it with auto loans. things that you cannot lose money on an auto loan in 2021. the used car was worth so much money. today that is normalized. we are back to the averages. shery: we will have you back to talk about all of the challenges ahead. christopher: great fun this year. shery: christopher whalen with the latest on the banks. the market for 81 notes is beginning to reopen. this, weeks after the collapse of credit suisse, set off a global firesale -- sale. anabelle is in hong kong. are we seeing a recovery? annabelle: in most parts of the world, switzerland and brazil,

two places that stand up. they have different rules. but you can see that the recovery that we have seen in the total return index, signal that the market has been importing the worst -- putting the worst of the banking stress behind them. that came on wednesday in japan with the mega bank, sumitomo mitsui selling one dollars of at1 notes. that is a signal that investors are looking at a discount of at1 , and seeking greater returns. these offer the promise of higher yields. bloomberg intelligence has put a note out on this. they say that the coco bond market is split, on geographical lines. what we are seeing in japan is one of the biggest banks in the world is a step in the right direction. it shows that japanese at1 market is open and these banks are able to issue these types of

notes. haidi: there is a red flag potentially in another corner of the debt market. annabelle: this is something that we have been tracking. what they are concerned about is the high cost of funding for banks. essentially, a strategist was saying, appetite for higher-quality credit, and eventually forced risk premiums to spike. we are seeing the shrinking yields on investment-grade debt, relative to the effective fed funds rate, which is the proxy for funding cost. that carry trade has reached its lowest level in -- since 2007. we have only seen it at this point to times in the last three decades. even though the high-quality corporate bonds might look cheap on a relative basis, the higher cost of funding for these positions could put a dent in think purchases and lead them -- bank purchases and lead them to

a higher spread. based on what td security says, we are looking at high risk of correction in the u.s. investment-grade bond market. tighter lending conditions could be the big catalyst for this to happen. haidi: coming up, the leadership race in thailand is heating up with less than a month before the general election. our interview with the leader of the opposition party, is next. this is bloomberg. [speaking foreign language] -- ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh

haidi: we are getting inflation readings out of new zealand. the kiwi inflation slowing at 6.7%. we're singh the move when it comes to the kiwi dollar in response. we've been watching closely, the trajectory of the rv and said, -- we're seeing quarter on quarter cpi coming in at 1.2% that is less than the 1.5% expected and also further pulling back from the 1.4% on a year and your basis we are seeing the cpi coming and -- coming in at 6.7%. a significant pullback from the 7.2% in the previous quarter as well. tradable quarter on quarter,

.7%. all of this adding to the expectations that we are through the past -- past the peak of inflationary pressure. rbnz, these rate hikes are expected to drive the policy inflation in 2023. a lot of the recent analysis suggesting that it could be harder than expected recession for new zealand on account of this tightening regime. let's get you the first word news. >> the bank of japan is set to be wary of tweaking or scrapping the yield control stimulus due to the recent turmoil of the banking sector overseas. official see you need to keep their cap on government bond yields to support the economy. the pog holds its policy meeting next week, it will be -- the boj holds its policy meeting next week, it will be the first under the new governor. rate hikes will have to continue if the latest macroeconomic look remains intact.

the head of spain's central bank says the size of the move will hinge on incoming data. ecb policy will depend on how risks related on the recent financials stress materializes. >> the financial tensions created by these events, we stand ready to respond necessary to maintain stability. >> the italian officials have hinted to taiwan they may be willing to pull out of china's road initiative. sources say that italy's industry ministry discussed plans to boost cooperation on chip production and export during private talks in taipei. global news 24 hours a day on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries around the world. i'm vonnie quinn. this is bloomberg. shery: thailand's opposition party move forward, surging in opinion polls ahead of the election. the group wants to reclaim a

decade lost to military backed rule. , there leader pita limjaroenrat tells bloomberg about the vicious plans for southeast asia's -- ambitious plans for southeast asia's second largest economy. >> the more i campaign on the ground, the more i understand that this election is about people looking for new -- a new face and a new future. people are really thinking about the inequality of the country, whether it is a choice between profit and progress. haslinda: you said that you can secure 100 seats, are you still is confident? what is driving that? >> we have delivered. we have proven to people our worth, having us as a member of parliament to speak on behalf, to try to past progressive laws, such as marriage inequality, liquor -- military conscription, to d materialize -- demitilai

-- d materialize thai politics. we want to challenge the status quo that people have been fed up with. people are thinking about the last decade for the past 10 years that was under the military. definitely i am more confident that more than 100 seats will be possible in this election for our party. haslinda: let's talk priorities. this is an economy that is struggling, lagging behind the philippines, growing at 7%, thailand is growing at 3% or less. what is your plan to fix the economy? >> we have to be purpose -- precise with data. we are at number six in terms of gdp growth and for next -- investment. that's what i meant by the term, last decade in thailand. that is why they need a new face

and future. what we need to do with the economy is spread it out, to decentralize it, instead of having everything concentrated within bangkok. so our economy looks like this. it is a big head, with small legs and arms and everything else. we we need to do three things. we need to d mirror --demit -- demilitarize, demonopolize, and decentralize. haslinda: what will help you succeed? >> referendum. what we have the power to do is doing a referendum within the first 100 days, asked the people whether they want to new constitution and what the amendment should be. this time it will be a constitution of the people, by the people and for the people. if we look at the history, maybe 13 constitutional amendments,

maybe 10 or 12 from the military, only one or two was done by the people. this time we need a constitution, the law of the land, to be by the people. we have no other choice. haidi: the leader of taiwan -- thailand's opposition party speaking to haslinda amin. this is bloomberg. ♪

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>> we received a report from a terrific panel, that made some wise recommendations. i will confer with my cabinet colleagues. i'll also confirm with the opposition and the parliament, to try to get an element of bipartisanship around the reserve bank review. it's a good opportunity for australia on the central bank to see what we can do better. that's the spirit. haidi: the australian treasurer speaking to bloomberg at the imf talks in washington last week about what to expect from the rba review. today's the day we are about to learn what is in that review, when it is released to the republic -- public in an hour. investors will be eyeing qs when the governor holds a news conference at 12:00 p.m., sydney time. far away, thousands of people are flocking to the western australian town, which is

directly in the path of a total solar eclipse happening later today. shery: take a look at how currencies are trading. the aussie falling for the second session. we had more strength in the u.s. dollar as well. this, as we not only had treasury yields rising, but that proposal to lift the u.s. debt ceiling. daybreak: asia is next. this is bloomberg. ♪

i screwed up. -mhm. i got us t-mobile home internet. ah! 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.

>> you are watching daybreak asia, coming to you live. >> we are counting down to the open. >> shares falling with an after our trade. price