♪ >> good morning and welcome to the "daybreak: australia." i am

paul allen disney. annabelle: i am annabelle droulers in hong kong. we are counting down to asia's major market opens. shery: good evening from bloomberg's world headquarters in new york, i am shery ahn. amazon delivers a strong sales forecast after quarterly profit and revenue came in better than expected. but shares pared gains in extended trading. paul: new data shows the u.s. in the worst of both worlds when it comes to high inflation and slowing growth. shery: and we are live at the bank of japan headquarters in tokyo ahead of kazuo ueda's first policy decision as governor. take a look at how u.s. futures are trading, this, after we saw the s&p 500 seeing its best gains since january, a jump of 2% in the s&p 500, though we are seeing russia on nasdaq 100 futures. strong tech earnings from the likes of meta, gain of 10%. it offset some negative data

that we saw, something that people called the worst of both worlds, breakdown and inflation up, core pce and expectations that the fed may hike rates in may. we saw treasury yields rising. the 2-year yield above 4%. 10-year yield at 3.52. we didn't see much in terms of crude prices, they are holding at around $75 a barrel. a neutered session. traders are on standby with mixed economic signals. but in after-hours trading, it is about amazon. helps one of the reasons we are seeing downside pressure. we saw the quarterly report, profit topped estimates. cost cuts. cloud computing doing much better than expected, and of course, this is at a time when amazon is implementing the largest layoff in its history. but the gains in the session have reversed and now is under

pressure. let's get more on amazon's results with our senior e-commerce analyst. good to have you with us to give us some perspective. why are we seeing this reversal in after-hours trading? guest: you are absolutely right, earnings came in above expectations. but on the call, they said there was a slowdown in april. so just some near-term softness. it does not surprise us. it doubly as has been trending weaker, and we did say -- aws has been trending weaker, long-term it is well positioned for growth. we think amazon in the long-term, across all its different facets of business, will still do well. paul: that call is underway at the moment, as you said. on pratt margins, when can we anticipate those getting back towards pre-pandemic levels? poonam: they are making progress. there is no timeline. but we did see gains in shipping

and improvement. as they continue to introduce more efficiencies and pare back those costs we saw, and grow, we could think margins could get back to pre-pandemic levels in the coming years. shery: when will dave -- what are they going to focus on as we continue to see amazon performing in the market later in the year? poonam: poonam: i think its execution. it's about finding efficiency. have cut costs, whether it is laying off people, or whether it is pulling back on the new businesses that they had ventured into, the tests and trials they had done. now it is, like, what do we do going forward, how do we make is to be sure that is more efficient? how do we use the space we have to be more efficient, drive scale and show that we can be part of consumers and businesses? ' everyday lives?

? paul: bloomberg intelligence analyst norm gioia wrapping up the results from amazon. the earnings call is still underway at the moment. you can follow it on tliv . new data shows the economy is dealing with rising inflation and a slowdown in growth. for more, let's bring in. is stagflation going to become aware that we're hear more of the coming weeks? vonnie: vonnie: we will know more when we get data out tomorrow and in the following weeks, but now the most you can say is that the tail risk for a stagflationary environment has probably grown. we are not seeing too many economists talk about the fear of stagnation -- stagflation just yet. stagnant demand would lead to unemployment and when you have persistent information on top of that, it's a vicious cycle. it's hard to get out of. something the fed would want to

avoid at all costs. let's dig into why the word stagflation even came up today. early because we saw gdp rice at an annualized one .1% in the first quarter. now, that was much weaker, the survey was for a 1.9 percent increase. and forget, this is backward-looking data. and as a wall street economist points out, it's not as weak as we might seem, we had bulging inventories in q4 of last year, which is what this quarter is being compared to. they got drawn down, which is not necessarily a bad thing. apart from defense spending ,, it was consumer spending, and that may be an area of concern because we saw a big increase in the pce data for the first quarter. consumers continued to spend. how long can that last question mark a couple of red flags. economists saying that perhaps the consumer spending slowdown as the quarter continued. we will know that tomorrow when

we get pce figures tomorrow. another red flag is the capex, it came in at just 0.7% a little bit slower than you might want for companies spending. shery: on top of that, we also got jobless claims and expertly falling as well. what does this tell us about the trajectory of the fed rate hike path? vonnie: it looks like the fed will not want to do anything to disrupt its trajectory which is to continue to hike. the data today will just give the fed more reason to continue, keep rates higher for longer. we did see a drop in initial claims today, but we are still at around 230,000. numbers have been ranging from 230,000 to 250,000 in the last several months, so it doesn't suggest a huge change in the labor market. the fed does meet before the

payrolls report. but so far, nothing in this data suit suggest the fed should not increase. if anything, today's upswing in inflation data suggests the fed should probably go up with the 25 basis points. shery: bloombergs vonnie quinn with the latest on the economy. let's get to annabelle droulers in hong kong with a check of how we are setting up for annabelle: jobless claims and what it means for the fed, these have typically been closely events for the market. we are seeing that investors are starting to be more sanguine about the outlook and less stressed as well. because when you look at the 1-day fear gauge, you can see that federation there. yes, the gauge has been guarded, but it does offer some

interesting insights into investor psychology. you can see the spikes in the past year or so. december 12, that was just ahead of the inflation. and we were at the 47 level. compared to where we are now at 1500 that's means traders are saying we have much more uncertainty on the outlook. yes, there is an expectation we could be higher for longer, but that is baked into the pricing at the moment. when you take a look at the session today in asia, we will be very much driven by the big tech earnings on wall street. very strong session overnight. that is the outlook for australia. new zealand is online. we are keeping a close watch on what is happening with the yen, slightly stronger again this morning, all ahead of the boj decision. paul: that's right, today is the day, because what word is first policy decision. for more, let's go to greg's global economics and policy editor kathleen hays in tokyo. safe to say we not expecting any major surprises today from governor ueda?

kathleen: we certainly are not. he has testified to parliament several times, suggesting that now, is ready to go very slowly on monetary policy. the consensus reflects that in the markets, that this is definitely likely to be a monetary policy meeting. it is more about communication and signaling than it is about making any specific change. of course early on, people thought he might be ready to shakeup yield curve control. it has side effects that others have criticized, including him. he is also known for moving slowly back in 2002 when he was on the boj's monetary policy board, he voted against rate hikes that were passed. and then they had to be reversed would so this is a boj led by mr. ueda wants to probably move slowly and carefully. that is the message we have gotten so far. the inflation outlook is a big number today, a big view for the

boj. because they have already forecast under governor kuroda that this year, inflation will come down, the core number which takes out food prices, it is running just over 3%. that is well above the boj's 2% target. but the forecast for inflation broadly is not to hold on to the 2% inflation target. by the end of the year it would be at 1.6%. however, inflation has been staying high. we have seen the negotiations looking as good as they have looked in the last 30 years. so there is wiggle room. will they maybe not weaken that information as they did in february? will governor what are acknowledge that maybe there is a little more momentum, a little more chance that inflation stays at higher levels that they have seen? we have to remember, he is a data guy. i think we will that emphasized today. shery: so when could we actually see the boj making its first

move, given of course that we also have the political deadlines coming up, and prime minister kishida's move to hold national elections sooner could make the boj's move really uncertain. kathleen: yes. that is a very important question torres, because it didn't exactly come out of nowhere. but when his party did better in the weekend before last in the local elections, he thought, we don't need a snap election, maybe could call a general election. actually what i am hearing is how can you move monetary policy, which has not moved much for 10 years. how can you make a big change there for elections? better to sit back and see how that plays out good we don't know when the elections will take place, if they will be called early. that could put a cloud over things. i am sure reporters will ask about that at the press conference and we will probably

get a nonanswer from ueda but people have a statement about what he didn't know or can say it. shery: bloomberg's global economics and policy editor, kathleen hays, joining us from tokyo. let's get to su keenan with the first word headlines. su: u.s. banks increased emergency borrowing from the fed the second week in a row, underscoring ongoing stress in the financial system. just over 150 $5 billion of loans were outstanding. the two backstop lending facilities in the week through april 26, were compared with $144 billion in the previous week. surging volatility in the banking sector could play into next week's fed decision. trade and diplomacy are on the agenda as a ernest williams delegation visits china for the first time since the pandemic. more than a dozen companies including rio tinto and fortescue are involved, while australia's trade minister is

also do a visit. it's the strongest sign yet but relations are improving, since tensions flared with the previous government in canberra. divided is sanctioning russian and iranian intelligence services individuals for their roles in detaining americans. wnba start brittney griner was brought home from russia last year after facing drug charges. one reporter, evan gershkovich remains in custody, accused of spying. senior officials say further penalties are likely, under an executive order signed last july. an obedient company says chinese authorities questioned employees and its offices in shanghai. they say they took away computers and phones, but made no arrests. bain says it is cooperating as appropriate. it is the latest move in with the u.s. has described as an emergent pattern of actions targeting foreign companies in china.

global news, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. paul: paul: still to come, former boj board member tells us how governor where there will substantially shift from -- how governor ueda will shift from the framework and how long that may take. at first our next guest says that while earnings have come in better-than-expected this quarter, a lot remains. we will discuss that shortly. this is bloomberg. ♪

>> credit suisse was a very specific case. silicon valley bank was a specific case in terms of its circumstances. it has highlighted an issue with some of the regional banks in the u.s.. and that we will see continuing

to play out may be in a small number of names. we have seen first republic over the last couple of days. we expect that we will see over a small number of names, it will not be systemic in any way, but there will be repercussions. shery: the barclays ceo, discussing turmoil in the banking sector. our next guest says the banking crisis will likely reduce bending and keep the fed in check. the president of the wealth management company, laila pence, joins us now from newport beach. good to have you back. despite the banking turmoil with regional lenders still unfolding, at the same time, we saw core pce numbers today higher than expected. jobless claims also and excitedly dropping. should we be prepared for at least one more rate hike come may? laila: yes. i think the fed is committed to a quarter percent rise next thursday, but we think they will

pause. what happened in the banking crisis, we have kind of created already a quarter percent increase. they don't need to go anymore. of course, they will be data-dependent. but the numbers, certainly the gdp numbers today, give comfort for the fed to only do a quarter percent next wednesday and then pause after that. shery: earnings are coming in better-than-expected. at the same time, we are expecting an economic slowdown later in the year. are we getting ahead of ourselves? laila: well, is -- it is sector by sector. we are also seeing quite a bit of other companies who are slowing down. certainly we see housing already in a recession, in our. so all of the effective interest rates will start going up in the economy and we will have a slowdown, which we need so that we can get inflation under control and actually get a potential interest rate decrease

next year. paul: so i guess the message is to be selective. what do you look at? where do you put money to work right now? laila: we really like big tech. tremendous amount of growth. defense spending, it is going to increase dramatically. the u.s. is increasing spending, as well as europe. health tends to do well regardless of whether there is a decreasing economy. and for the first time we are looking international. paul: you discussed some of the macro shadows being cost over the investing environment. i guess another one of them is the debt ceiling, which just seems to be getting closer and closer, with no resolution in sight. but history suggests that this always gets sorted out. is that something you spend a lot of time talking about. laila: laila: we do spend some

time thinking about it because it will create volatility. they will improve it, but could provide some opportunities in areas possibly with big tech again, that we like. it is something that we definitely watch. we get nervous. investors, anytime they are nervous, it will be an opportunity for us to add to some of our favorite sectors. shery: when you say that you are for the first time looking at international, do you mean international developed markets or emerging markets? laila: the ifa index right now is 10 times the ratio, normally there is a 12% discount in terms of that we can expect, but this high of a differential between the two is actually a 27% discount that the indexes having over the s&p. so for the first time, we are looking at positioning some assets there. those companies tend to pay

higher dividends than the u.s., so we are looking at that seriously. shery: how are you factoring in dollar strength? laila: once the fed stops rising interest rates, and potentially the dollar interest rate decreases next year, we think the dollar will decrease which will make international investing very attractive. paul: alright,, pence wealth management ceo laila pence there. and he can get more stories on what you need to know on today's edition of "daybreak,". this is bloomberg. ♪

shery: u.s. futures are under pressure. you can see the nasdaq 100 is down more than 1/10 of 1%. really surprising given that u.s. equities rose in the u.s. session, the most january for the s&p 500, boosted by positive tech earnings, especially with meta, jumping 10%. this offset economic data that showed slowing economic growth and higher than forecast inflation, something that people have said was the worst of both worlds. when you have growth down and inflation up. of course, we are talking about poor u.s. pce. . tomorrow we will get pce deflator's, a picture of what the fed could do next. this is coming as we are watching very much what is happening after hours. amazon and intel, those are the names we are watching. because we just got earnings. amazon eight estimates across the board, reporting quarterly profit that topped estimates. they permitted cost cuts and

surprised with strong sales in cloud computing division. still, in the earnings call they talked about slowdowns in the cloud computing division. seems like the gains we saw earlier in the after-hours session have been reversed and now we are down more than 2%. intel in the after-hours saw a jump. we had seen pressure for intel earlier. this is the biggest u.s. chipmaker. the slump we have been facing in that sector, we know. and they are predicting a steeper loss than expected, really struggling with this pileup of unwanted inventory which has really worsened intel's flight. -- intel's plight. paul: not good movement for the ozzie and the kiwi in early

trading. it is the yen that will really be in focus today. of course, the boj meeting. we will have wall-to-wall coverage for governor ueda's first meeting in charge of the boj. we got a bit of e.m. strength, relatively speaking, 133.8 nine at the moment. barclays, though, saying that the year-end could regain its status as a preeminent currency haven, after many years of dollar dominance, as the boj normalizes policy. looks like a long road before policy normalization happens, with governor ueda signaling that he will not do anything to kickoff his tenure at the boj today. shery:. still really hard to shake off the feeling after 10 years of governor kuroda does shock and awe policy. here is a check of the latest is not/headlines. let's tell you more about intel. shares jumped after that chipmaker promised that recovery in the second half, leaving investors to look past the disappointing forecast for

profitability in the second quarter. the company predicting a return to free cash flow and that the growth margin should begin to widen. they also had an optimistic view of the broader industry. we'll intel jump 5%. byd reported another stellar quarter of earnings. net income searched for hundred 11% from a year earlier to 597 million dollars. operating revenue rose 80%. this is bloomberg. ♪ we moved out of the city so our little sophie could appreciate nature. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes) (chainsaw continues) (daughter screams) let's pretend for a second that you didn't let down your entire family. what would that reality look like? well i guess i would've gotten us xfinity... and we'd have a better view.

do you need mulch? what, we have a ton of mulch.

shery: u.s. house speaker kevin mccarthy has escalated demands for president biden and democrats to avoid a debt ceiling crisis, by embracing the plants that house republicans

passed. he spoke earlier to go back. >> i don't know, 85 days ago i sat down with the president on february 1, talking about finding a sensible, responsible way to raise the debt limit and make us less dependent on china, curb inflation and bring growth. that is exactly what we did. the president said he would not meet with me unless i showed him a plan. i showed him a plan. and we passed it. the way government works is the house passes a bill, the senate passes a bill, then we conference together, and the president can decide. the challenge here is that the senate has done nothing -- i shouldn't be rude, they did name march, maple syrup month, but they have not done anything. the president has ignored this. the president is putting the economy of america in jeopardy by not doing anything, because only the house has raised the debt limit and passed the bill to do that, and at the same time, grow the economy. we did it with ideas he has

voted for -- work requirements. he voted for that as a senator. just a couple of months ago in wisconsin, it passed with 82% of the vote. to limit our growth in the future so that government does not get out of control, that is an idea from joe manchin. we help the supply chain. we. cart 87 thousand irs agents. we cut the red tape so we can build things. again in america. i don't think that is radical. the words coming out of the white house that we are going to melt children's bones, that we will create asthma, there is nothing in the bill that does that. it actually protects children, protects the military,, curbs inflation. >> biden didn't say shall be a plan, he sexually a budget. this is just a proposal, not a budget but he, is signaling openness if they are separated. why not just pass the debt

ceiling? this is what congress has to do for the full faith and credit of the united states, and then at the same time, have those negotiations regarding a budget for the fiscal year? >> that we just clarify for your viewers so they don't get mixed up like you did. a budget is nothing to do with the debt ceiling. increasing the debt ceiling is what we did yesterday, we increased it by $1.5 trillion into next year. we also helped grow the economy, curve inflation and make savings. we did everything everybody requested. what people really need to look to is, the president has done nothing. he has ignored it for 85 days. . if you wonder, has this ever been combined together? yeah. has the president ever voted for that? he voted four times and, when he voted against the debt ceiling he said he wanted, to see more fiscal changes without -- he didn't want to vote for a green debt ceiling. every single time we move

forward on the debt ceiling. -- last time nancy pelosi said she wouldn't raise the debt ceiling without the spending decided upon. we what chuck schumer say that the leverage he has is to deal with the debt ceiling. so i don't know why they are changing everything now. the negotiations and 2011 were called biden talks. biden ridiculed anybody who wouldn't sit down and negotiate. i am not sure if he can't remember what he did in the past or what he said, but the one thing i do know from history is, we have never defaulted. paul: that is u.s. house speaker kevin mccarthy there. let's check in on the first word news now with su keenan. su: south korean president using jan says his country wants to work closer with japan and the u.s. to counter threats posed by south korea. during a visit to the u.s., yoon

, wo a commitment from the batted in administration to strengthen its deterrence against north korea. he also said so obama will respond firmly against any publication. >> president biden and i agree to strengthen the deterrence. along with coordination, we need to speed up korea, the u.s., japan trilateral security corporation to counter increasing north korean nuclear threat. su: the philippine central bank meanwhile, is considering lowering its inflation forecast from 6% to 5.7%. the governor says he expects april's cpr to be much lower. he also sees inflation falling below 4% unsolicited, or october, and using price pressures would give the bank to consider creating the reserve requirements as early as june. if video shown on russian state

television suggests that fed chairman jerome powell held a call with a pair of russian characters posing as the ukrainian president. in the video, he is seen answering questions on topics ranging from inflation, and the russian central bank. the fed confirms the conversation happened, but no confidential information was discussed. the fed also says the russian video appears to have been altered. the pentagon is under renewed pressure to explain why it feel to catch the error man accused of leaking classified information, this ahead of the new detention hearing for jack to sarah which alleges his access to classified information far exceeds what was publicly disclosed. it also says he had been suspended from high school for comments made about guns and racial threats. global news, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. shery: we have more to come, including what is happening in

japan as we go towards the boj decision. this is bloomberg.

>> i think the boj has made several mistakes in the past so we cannot afford to make another mistake. our rule is to get behind the curve.

>> but do not expect that much from the boj. >> we should not send the wrong message to the markets, like this is de facto tightening. >> the boj is not getting the message after 30 years, maybe this wallace he is a bad policy. >> there is less pressure for interest rates to rise this is a good chance for the boj to take the first steps for policy change. >> fourth quarter this year. >> yes. >> ok, we will see. [laughter] >> i think japan is making a big mistake. unfortunately the boj will not change, the boj is just holding up a bad economy. paul: some of our guests there on what to expect from the boj's first policy decision under because will where there. our global economics and policy editor is standing by with more. kathleen. kathleen: we suddenly had a wide

range of opinions expressed about this first meeting, what it may entail. we are getting right to our first guest of the day, takahide kiuchi is the executive economist at nomura research, but importantly, he was on the board of the bank of japan, helping to set policy from 2012 to 2017. it's great to have you back. you have long been a critic of what you think is excessively easy monetary policy for two long of a time. what is wrong with the policy, what needs to be changed? takahide: there are side effects, such as undermining the market function and undermining the profit of financial institutions. so i hope that mr. ueda will normalize monetary policy soon. it is likely he will take time

to change and review the monetary policy because it may undermine the stability of the financial markets. also, he may receive political pressure not to change monetary policy so soon. kathleen: let's start with today. so much focus is inflation. . on one side of the coin, the inflation measures over all, well above 2%, have been for nearly a year now, but expected to go lower. a lot of people are waiting to see what the inflation outlook is under ueda, his first meeting. takahide: i think the people expect inflation rate to go up because of the acceleration of wages. they expect increasing prices. but i think mr. ueda is more cautious about prices.

he argued that the inflation rate may go down below 2% in the second half of this fiscal year. but today's boj release of the quarterly report including the price forecasts, it may revise up a little bit the forecast for 2023 and 2024. the newly released numbers i think are important. the inflation rate could be 1.522%. that could undermine market speculation that the boj will change policy soon. kathleen: so in terms of messaging -- he will get asked a lot of questions about yield curve control and the possibility that it hurts market functioning. what do you think he could say? he have to say it is too early to tell, will he acknowledge that maybe it will change? takahide: i think today he may delay the possibility.

but i think you -- he might exchange in the second half of this year. it is not undermining financial markets' action. the best argument could be that the boj has to -- government bonds to prevent the yield from exceeding the upper limit. so i think the boj have to change the ycc. not necessarily a change in policy, but could be classified as fixed --. [indiscernible] kathleen: so that is the strategy, keep the rate negative, because we still have monetary easing, and then say we will start adjusting ycc because of all the reasons that you mentioned? takahide: he has always argued that may be easing monetary policy could be appropriate

under current situations. but it doesn't mean he has no idea to change monetary policy at all. i think he has strong ideas to reduce the side effect by changing the framework of easing monetary policy. he is likely to increase the interest rate from -0.75% to 1% next year. -- from -0.75% to 0% next year. easing monetary policy could be maintained. kathleen: you just mentioned political pressures. we often look at inflation, but that is a big factor in the background. explained with -- explain to us what is happening with pressure. takahide: the pressure would be weakest for mr. ueda.

he doesn't have experience of discussion with politicians. now that the conservative group of the ruling party strongly opposed to the change of the monetary policy, because that could undermine the legacy of abenomics, i think that could be a factor to postpone the timing of easing the monetary policy framework. it is a reason i expect that the change of monetary policy will be postponed to the second half of next year at the earliest. kathleen: it is interesting. explain how that works. you can postpone -- weight further monetary policy review, wait for them not to change the negative rate until next year. but ycc, you see it changing as early as october of this year.

takahide: i think that yc will be changed not as a change of policy, but it would be explained as flexible measures. because it contains a lot of side effects. i think the boj has strong ideas to change, modify the ycc in advance of a full-scale change of monetary policy. maybe starting from the second half of next year. kathleen: ok, takahide kiuchi, thank you for joining us ahead of what will be a very important decision, even if it is a decision not to do anything, maybe just hints about inflation. i am sure there will be good questions after the press conference after the decision. now we will send it back to you and get ready for what is already a big day here for us in tokyo. shery: kathleen hays there with the latest on what we can expect from the boj. perhaps no fireworks, but more hints on where the new governor

ueda could take his first policy decision. and we will have conversations with former officials of the central bank. let's stay with japan and assess the outlook for the japanese currency. annabelle joins us for morning calls. after years of ultra easing monetary policy, pressuring the japanese yen, what can we expect in terms of the outlook of the currency as a haven currency? annabelle: some are saying in the markets that this could be an opportunity for the yen to regain its status as the preeminent haven currency after what has been years of dollar dominance, that is the call from barclays. they say we have already seen signals in the market. that was a product of what was happening in the u.s., with the banking stresses, also in europe. what will assist, barclays says, is what the boj does. expedition that it will be

normalizing this year, that could help strengthen the japanese yen. where barclays says we will be at the end of the first quarter next year will be around ¥123. near the 134 level instead. what could also helped that is diminishing pressures around global inflation. energy stocks are fading. still worth noting, the japanese yen is down 2% against the dollar this year. paul: annabelle, how about the yuan. what is outlook there? annabelle: it has been under quite a bit of pressure. some markets also saying that this could be set to continue. what we have -- history is a guide, but it is about the seasonality factors on the horizon. first the dividend payouts. chinese companies listed in hong kong are set to issue dividends over the next few months, totaling around the $80 billion

mark. that is due in the first three months from june. so that is what effect. the other is travel. it has been a jump in outbound travel. bookings approaching the all-important holiday in china. with that, there has been a seasonal wave of foreign currency purchases from local buyers. what this means for the outlook, barclays says there is a strong chance that dollar-yuan will break out of its range. still downside risks for the chinese yuan stacey: could reach the 7 level of months from now. slightly weaker than the current point. paul: thanks very much, and about. officials from more than a dozen australian companies including rio tinto and fortescue metals are heading to china this week, the first such visit since the pandemic. the trip is also the strongest sign yet that years of frosty

relations between canberra and beijing are warming again. it's bring in our australian government reporter, fenway scott. tell us who is on this trip and what they are hoping to achieve. ben: australian figures, people from fortescue metals and rio tinto heading to beijing. it is a sign about how important china is to the austrian economy. we had three state premieres of some australians biggest and most resource-rich states, queensland, western australia and others, heading to china. we have only just started to see the warming of relations between these two countries. so clearly, there is a big appetite to get back into the chinese market after three years of tensions between the two countries. shery: which included china hitting exports from australia. what are we seeing from that front?

ben: we are starting to see the unwinding of sanctions against austria that were imposed by china. coal shipments are almost back to normal. the wto case has been suspended by china as china has committed to a review of its barley tariffs. it is disputed whether it is a three month review or a year-long review, but in any case, there is a review. australian officials say they are hopeful of a similar review for their wine tariffs before the end of the year. in total, the trade minister told bloomberg that he was hopeful that we could get the barley and wine issues resolved by the end of this year. which would be really remarkable given that it was a year ago that all of these different exports had sanctions still on them. paul: yeah. how things have changed. bloomberg's ben wescott joining us. be sure to tune in to bloomberg radio to hear more from the days

biggest newsmakers and get in-depth analysis from the "daybreak" team broadcasting live from our studio in hong kong. you can listen via the app radio+, or on bloomberg.com. plenty more to come. stay with us. ♪

paul: let's get a quick check of the latest business flash headlines. chinese oil companies recorded weaker first-quarter earnings as low road prices -- crude prices weighting on profits. cnooc saw its income shrink. brent crude was down from last year after russia's invasion of ukraine. sources told bloomberg that

sinochem has been discussing a potential reduction in the fundraising size, delaying the ipo late this year or next year is one of their proposals. it's unclear where the chinese authorities will accept any of the proposals. shares of jeffries surged after a japanese company agreed to put its stake in the u.s. investment bank according to a joint statement, the japanese bank would increase its investment 15% from the 4.5% of shares purchased in 2021. the jeffries president says the move will help it compete against large banks. snap plunged in the trade following its first ever decline in quarterly revenue, after making major changes to its advertising tools. sales fell 7% just under $989 million. that missed the average analyst estimate of $1 billion. economic pressures, and the

company's product changes are expected to also weigh on the current quarter. shery: that is it for "daybreak: australia." "daybreak: asia" is next as we preview the first speech from governor ueda. no changes expected. economists perhaps a june meeting as the most likely timing for a change in the ultra easy policy. we will have more. this is bloomberg. ♪ this is an important notice to consumers facing $10,000 or more in credit card debt, medical bills or other unsecured debt. you may not be required to pay it all back because there are special programs now in effect that will significantly reduce the amount you will owe if you qualify. this is not bankruptcy or a debt consolidation loan. these programs, which the credit

card companies like to keep secret, exist to aid american consumer struggling with overwhelming credit card debt by offering tremendous savings and real debt relief. accredited debt relief has established a special hotline for you to call and learn what savings you qualify for. they've helped qualify consumers with over $1 billion in debt and our

when i was his age, we had to be inside to watch live sports. but with xfinity, we get the fastest mobile service and can stream down the street or around the block! hey, can you be less sister, more car? all right, let's get this over with. switch to xfinity mobile and get the best price for 2 lines of unlimited. just $30 a line per month. i should get paid more for this. you get paid when you win. from xfinity. home of the 10g network. these days, our households depend on the internet more and more. families grow, houses get smarter, and our demands on the internet increase. that's why we just boosted speeds for over 20 million

xfinity customers, on us. so you get more of the speed you need for day and night streaming. more speed you need when you're work from homeing. and more speed you need as your family keeps growing. check in on your current speed through the xfinity app or upgrade to the speed that's right for you today.

♪ shery: you're watching daybreak asia coming live from new york, sydney and hong kong. annabelle: