haidi: welcome to daybreak us earlier. annabelle: we are counting down to asia's major market opens. shery: the top stories this hour -- u.s. cpi data set to give clues on the fed's next move -- fresh fears over a credit crunch spring bond traders to bet on the biggest policy shift in almost four decades. haidi: show you may be set to record its first budget surplus in 15 years. shery: the leaders of japan and south korea strike a tone of unity in a rare summit, there first and about 12 years. u.s. futures at the opening of the asian session not doing much, fluctuating between gains and losses after that rally in risk assets we saw on friday and rebounding from the route and

regional lenders in the u.s., not to mention a solid jobs data report really calming investor fears a recession is just around the corner. we were watching the tech space as we had apple earnings boosting the sector and we were watching treasuries falling across the board. the 10 year yield rebounding along with the two year yield, this given the strong jobs numbers, perhaps the fed will stay higher for longer and spring bets we might see an 11th straight rate hike in the month of june. we see crude prices in the asian session around $87 a barrel. gains in the friday's session but a move around $13 for wti last week. three weeks of losses given the concerns about the economic outlook. annabelle: what is interesting is when you look at what is happening in asia, it has been a little more resistant.

we saw the broader benchmark rising on friday. this is the outlook on futures -- this region has better growth prospects and financial stocks are not really facing the same issues as wall street lenders. new zealand is online and china watching as well given the end of the earnings season, it hasn't been quite as good as expected. perhaps we haven't even seen the bottom yet. what else we are watching in the session is even if investors are seeking a safe haven, we are keeping an eye on what's happening with the yen. also taking a look what's happening in the debt space, moving a little higher, reaction to what's happening in treasuries. shery: in the friday session in the u.s., we had banks

rebounding finally from the regional lenders route we were talking about. rebounding from was we haven't seen since 2020. we can't forget it has been a huge route. we are talking but the s&p financials index on the verge of falling below its 2007 peak. this is a key technical threshold because the last time we fell beneath it, we took about a decade for the gauge to recover the ground it had lost. during the pandemic, we were slightly down but the reason we watched this closely, what does it mean when you have so much pressure for banks? let's will that mean for the economy? haidi: what does it mean for broader market confidence as well. you can look to a lot of different indicators and we see a lack of confidence when it comes to u.s. regional banks.

this is a hybrid security that helps meet that capital requirements without diluting shareholders but we are seeing this market upended in a selloff fueled by these regional bank failures. they are not selling you prefers, so there's low issuance amidst the higher cost. especially since it was triggered by the seb collapse. if you look at that $12.2 billion shares tracking the wider preferred market, that was down over 5% and was one of the biggest selloffs since the global financial crisis. it doesn't feel like there's a lot of confidence an issue is lacking money on the sideline. a big question as to where this leaves a lot of investors in broader market sentiment. our next guest says when it comes to forecasting for the short -- the short-term, it -- it is much harder than long-term.

let's talk about some of the opportunities that do remain. good to have you with us. let's take a look at the warning signals when it comes to what we are seeing with the ongoing crisis of confidence with u.s. regional banks. do you see this as bottoming out or is their worst to come when it comes to this risk? >> i don't know if it is worse to come but i wouldn't be surprised if couple more banks in the next six months or so turn up with troubles. it -- as you lead in, it is hard to call a short-term crisis. when is it going to hit, when is the peak, and when are things going to get better. that is what investors want to know. the short answer is nobody knows. the thing i think most people are concerned about is the runs on the bank that have happened, the shortselling of shares that

have also happened in these weaker banks and banks that have overly accepted risk in an area like commercial real estate or in the first failures, in cryptocurrency. banks large or small can take risk, too much for their shareholders and hopefully, that's all gone through but i'm not saying it is an absolute thing. haidi: you talk about the fact in five years time, a lot of beaten-down stocks would show their true value. is banking compelling for you at this point? kim: it is only compelling because it's the basis of our economy. we need banks and, in the u.s., we have a lot of banks. probably more proportional to the number of citizens.

we are pretty high on having a lot of small banks. but for our economy where we need to have lending go on at a level where the anchor knows the lender, it is not that bad. perhaps half the banks will go away but the very smallest banks will probably likely go away. the crisis has focused on medium-sized banks and i don't think especially the larger regionals are going to go away. they are just not. a survey very valuable purpose. if i am bargain hunting at this point, i'm looking at those more stable regional banks. shery: how much weight do you give friday's jobs numbers, given we continue to hear news of new layoffs, especially in the tech sector? kim: i think as they are adjusted over time, you can trust that.

but a lot of algorithms are used to determine the number of jobs that started in whatever time, i always look at it with a grain of salt. you have to look at unemployment. that's probably a better number because states have to have their weekly unemployment roles in line and they understand who is on the unemployment role. that's more about precise than the jobs number. along with the adp which is a private company that comes out with an estimate of jobs gained, you can get an idea the economy is still growing. the number of jobs is still growing, albeit at a slightly slower pace than it has in the last six months. shery: fireworks again for the cpi numbers this week? kim: yes.

everyone is holding their breath for is inflation getting better or is inflation getting worse? that cpi number is going to be watched by every last investor. haidi: we have seen this policy divergence with asia where policy has been more muted. do you as an investor play that? kim: not directly. we have a mandate to only be in the u.s., but we are happy to hold large multinational companies that do business in areas that don't have inflation like asia. the larger companies, the global companies, that is how we play that. you are right, asia has held out much better, especially than europe or the u.k. haidi: how closely are you

watching debt ceiling negotiations? it feels like we come here every now and then and does it seem like this is presenting real concern for investors? kim: actually know. because we have both sides talking now even though there is a short runway and there is an offramp and that is to do the american thing which is to kick the can down the road, which is the september timeframe. i think we are not going to default in the short-term but that makes the negotiation all the more harder as we get closer to the election. it will be interesting. we certainly watch this, and i speak for all the u.s. investors because we don't want our government to default. it would be very, very bad. but we have hope the two sides are talking. it -- shery: it is one of those

sound ops we are used to seeing in the u.s. oil prices, i can't tell where it is going. opec plus announced price cuts, we've seen a lot of volatility. do you play the energy sector? kim: i don't play it directly. we have exposure and own a large global oil provider, producer. but what i do use it for is what happens during the oil is extremely confusing right now. whatever country or region says they are going to cut supply, that is always a we will see. but we do watch that carefully. shery: good to have you with us. let's over to vonnie quinn with the first word headlines. vonnie: treasury secretary janet yellen says there is simply no

good option for solving the stalemate in washington other than congress lifting the debt cap. president biden is locked in a stare down with republicans who promised spending cuts before approving a debt ceiling. >> all i want to say is it is congress's job to do this. if they fail to do this, we will have an economic and financial catastrophe that will be of our own making and there is no action president biden and the u.s. treasury can take to prevent that catastrophe. vonnie: the leaders of japan and south korea say they plan to work more closely together on security, including threats from north korea. both sides agreed to cooperate on chips. the first trip there by a japanese leader in 12 years. it's a sign of improving ties

between the two u.s. allies as they confront threats from north korea and china. chinese authorities are warning heavy rainfall in southern areas may lead to emergencies with a flooding season underway. state radio says rainstorms on friday and saturday affected 293,000 people and caused $33 million of economic losses. for officials were reported missing after falling into rivers after heavy rain. wall street journal is reporting u.s. sanctions are spurring chinese tech companies to accelerate ai research. based on interviews from research papers, firms like baidu and alibaba are looking at state-of-the-art ai performance for chip developing. their research could allow tech firms to other restrictions. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn, this is bloomberg.

haidi: more to come on daybreak australia. this is bloomberg. ♪

haidi: let's take a look at the week ahead. after the fed hint at a rate hike, markets willie focused on cpi. that manager of inflation has remained stubbornly sticky. also watching inflation numbers from china. price pressures in india as well later this week. on thursday, -- after a surprisingly strong wage and inflation data. investors have priced in a 5% base rate by september. china watchers are expecting prices to contract 3.4%. that would be a seventh straight

month of decline. japan pmi numbers and china trade balance as well. australian consumer confidence haidi: as well as south korean unemployment. another big week of earnings. watching nintendo reporting on tuesday followed by panasonic on wednesday and toshiba on friday. japanese autos in focus this week with toyota reporting wednesday and nissan on thursday along with hunt up. mazda closes out the week on friday. that is your week ahead. haidi: also this week, watching the trillion budget. the country may report its first surplus in 15 years on tuesday and that would bolster the treasurer's move to help pay back inflation. what are you watching out for in this budget? >> the first thing is are we reporting a surplus or not? it would be a big deal for the labour party and treasure

because a surplus is seen as a big political victory in australia. especially after we had a major debt and deficit problem with the pandemic. also, it's important for the treasurer that monetary policy moves in line with fiscal policy. the fact we are reporting a surplus would mean they are contracting spending and we will see where spending cuts are going to happen and what, if any measures the treasury is going to announce. shery: neighboring economies are very important. we heard from the treasurer in china. >> the global economy more globally has been softer than what people were anticipating. china may be stronger but overall, we want to make sure we are making the most of these

trading relationships. that has been a big party. china is important to our economy and budget. shery: how is this going to play into the calculations for the s trillion government? swati: a big part of this possible surplus or at least the contraction in the deficit is driven by commodities prices. it is roughly a fifth of the windfall. the other aspect is more people in jobs, so more tax take from governor and worker and more people owning more than they did before. it's a stronger economy and china is important for australia's economy. we are expecting the export revenue to increase because of more international students coming into australia. which we did not see in the past couple of years.

it continues with strong employment growth and that's coupled with high commodity prices and more people coming to china in the form of tourists were students. it's going to be a bonanza for the economy. haidi: the question is whether that bonanza passes through to helping the cost of living crisis issues currently being felt across large parts of the population. do we expect the budget to deal with that? >> the treasurer has said he's talking about targeted relief thomas of he's looking at some segment of people who are affected by these living cost pressures and the measures will be targeted at them. there will be some measures for older people looking to get back into the workforce. there are some measures likely for families, so he is looking at doing some trust spending and you will see increased spending

for us really is disability scheme for health care and defense. outside of the targeted cost-of-living relief, we are going to see these ongoing pressures on health care and defense. shery: the latest on what to expect from us really is fiscal blueprint. still ahead, more highlights from our conversation with the australian treasurer as he gives a preview of tuesday's budget.

haidi: here's -- shery: here's a quick check on the latest business flash headlines. warren buffett has given a gloomy production, saying an incredible time for the u.s. economy is coming to an end.

the 92-year-old told berkshire hathaway's agm most operations will post lower earnings this year as a long predicted downturn slows economic activity. berkshire posted an almost 13% gain in operating earnings for the first quarter. set -- ubs said to unveiled the banks leadership team this week. these likely to keep a few credit suisse executives, including the cfo, coo and head of the swiss business. he says all options, including a spinoff or sale are on the table for credit suisse's swiss unit. pacific west bancorp has /dividends. they declared a cash dividend of one cent for a common share. they say reducing the dividend is a prudent step to accelerate plans to build capital.

haidi: take a look at the day ahead for australia. from westpac, income of 4 billion australian dollars. westpac in line with what other lenders have been saying, seeing a tough economic outlook ahead. on monday, we will getting run business conditions and readings for april. ahead for the australian budget to be delivered on tuesday. we hear reports us truly could be heading to that first fiscal surplus in 15 years. we get much more on what to expect from the budget next. here -- hearing from the treasurer himself speaking about economic priorities for the fiscal year ahead. this is bloomberg. ♪ haidi: let's take a look at how we are setting up a net comes to the broader asian trading day. sidney futures looking pretty

positive. this despite some concerns of strength over the chinese rebound. metals including iron ore, looking like some positivity ahead of that budget. the aussie seeing more strength. asian shares were poised to climb after what has been a chaotic week for financial markets. we did see that rebound through the u.s. regional bank picture as well as a broader risk asset rally. new zealand looking a little softer. shery: take a look at how u.s. futures are trading. the brutal round of regional banks, that solid jobs number tempering fears of an immediate recession. the s&p 500 managed to hold the longest losing streak since february and the vix snaps that four-day surge. but we are very much watching

the core cpi numbers in the u.s. this week. the expectation is for 5.5% increase in april, so perhaps more of that trend that might lead the fed to hike again in june. the expectation after the solid jobs number as we could see that 11th straight hike. not a lot of movement but perhaps a little upside in the asian session in the very early asian session as we continue to watch oil prices as well. debbie ti around $71 a barrel. more to come on daybreak australia. this is bloomberg. ♪

vonnie: i'm vonnie quinn with

the first word headlines. president biden's approval has said that she slid to a career low in latest opinion poll. results show biden lagging donald trump in early voter preferences for the 2000 when he for election. his approval rating fell six point lower than february. some fichte's -- 56% disapprove of his performance and 68% regard biden is too old for another term. chileans are voting to elect 15 members of a new constitutional council as the nation tries to rewrite a charter dating from the dictatorship of augustine pinochet. the initial push ended in failure last september when voters overwhelmingly rejected a draft many saws to radical. the taliban has agreed with china and pakistan to bring belt and road and the structure projects to afghanistan. they discussed afghanistan's real instruction -- reconstruction, including expanding the core door to the

sanctions hit country. they called were unfreezing afghanistan's $9 billion of overseas assets. arab league states move to reinstate syria, effectively ending the gate long regional isolation of bashar al-assad. the country was suspended on -- after the 2011 arab spring. illegal official told bloomberg the readmission will likely be formalized later this month. global news powered by more than 2700 global -- haidi: jim chalmers says the economic surge from china's reopening cannot shield australia's budget from global economic headwinds. he spoke with bloomberg head of the release of the budget on tuesday. >> this will be a responsible budget which prioritizes australians doing it tough.

it will have three main elements, a responsible package of cost-of-living relief targeted to the most vulnerable but also investment and economic growth to lay the foundations for the future. all of that wrapped in responsible economic management that tries to get the budget on a more sustainable footing. whether there will be a surplus, the one thing economist to agree on is there will be deficits in the year ahead. what is your plan to solve that? are additional review measures on the table? >> yes there will be substantial near term improvement in the budget. there's a misconception that says that's all commodity prices. about 1/5 is commodity prices. 40% as improvements in the labor market, including people not just working more but earning more and the beginnings of decent wages growth. substantial improvement in the near term. you are right structural

pressures intensify rather than ease after that. that's a focus of the budget. we have a structural challenge in the budget and that is why we are making some important changes in the medium-term as well. >> this is not all due to the commodity crisis. is that something you would like to change? would you like to move away from this overreliance on a single source of revenue for australia? >> i recognize the substantial contribution. around a fifth of the upgrade, half the upgrade that comes from improvement in the labor market. still a substantial part of the story. we want to have an economy that is broad and diverse which creates more opportunities for people in more parts of us truly a. what you are seeing in the budget is in order to lay the foundation for future growth, we've got to do a great job of the net zero transformation.

we have to get technology working for people, not against them. we have to make sure people have the skills to adopt that technology in the future. there is a welcome focus on cost-of-living that will be the major focus of the budget, but there will also be big investment in skills and other areas which will drive future prosperity. >> there is a sense when it comes to the australia-china relationship that businesses are rushing back to china to take advantage of the warming relations. should australians be more cautious before we rush into tying our economy to china in a major way? >> we put a lot of effort into stabilizing the relationship. we put that effort in to try to stabilize it. australia more than anyone else has a stable and peaceful and prosperous and secure region. we are a middle sized economy

and have key relationships in the region. we are not naive about the complexities of managing that relationship. in the budget, we expect the chinese economy to pick up a bit faster as a consequence of the opening up. we need diverse markets and we want importers and exporters to do well in the global markets. china will be a big part of the story and that's why we want to stabilize the relationship. it is offset by other things -- the global economy more broadly has been a bit softer then people were anticipating. china may be a little stronger, but overall, we want to make sure we are making the most of these trading relationships. that has been a big priority. china is important, not the whole story but important. haidi: us trillion treasurer, jim chalmers speaking there.

westpac is expecting a tougher economic environment to come after profit that slightly beat estimates. we pre-much know how the market is going to react given the past reaction to very robust numbers but less certainty going forward. >> the last of the big us trillion banks to report this cycle and it's a similar story to what we've seen. the numbers are basically pretty good. 4 billion aussie dollars. that's up 22%. dividend coming in line and the net interest margin is what everyone is keeping a close eye on. that was up five basis points. there's a general agreement that is it for net interest margins. westpac saying there's intense competition for mortgages. westpac says it's going to shift attention away from home lending and toward higher-margin business lending.

shery: how challenging is the outlook for westpac in the second half? paul: westpac offering commentary about how much tougher the second half is going to be. if it sees the australian economy slowing, it made notes of the 370 five basis points rate rises we've seen from the reserve bank of australia in the past 12 months. there's a focus now on how long those rate hikes are. there is no hint of anything in us trillion terms of what has been going on in the u.s. it's well over the regulatory requirements, so no doubt about how strong us trillion banks are but similar problems, looking for cost savings. westpac managed to find a billion dollars worth of cost to be saved, brought the income expense ratio down but the

market has not liked the story westpac has had to tell so far this year. shares off 8%, so it will be interesting to see how they do it. haidi: the latest on westpac and the broadening 8 -- broader banking sector. warren buffett also bit, -- a bit cautious on what lies ahead. he's expecting declines on the bulk of archer have to ways -- su keenan joins us with more on this story and the coming of their annual agm. >> a production of an earnings decline gets a lot of attention because berkshire hathaway's conglomerate with railroad, retail, insurance, energy, utilities, it seems a proxy for the u.s. economy in general and the outlook from buffett is a

gloomy outlook for his own businesses. he sang the good times may be over. he told crowds gathered in omaha that the incredible time for the u.s. economy is coming to an end. the majority of berkshire units will report lower earnings this year than last and this comes on the heels of reporting and almost 13% gain in operating earnings in the first quarter and topping off the cash pile commending the quarter with 430 billion dollars. it's coming off a strong quarter . buffett says he expects earnings at its underwriting operations to continue to do well. the auto insurer geico already reported higher earnings, swinging to profitability. other parts of the conglomerate such as energy falling more than 46%. add the railroad unit coming in weaker than expected, berkshire brought back for -- bought back

$4.4 billion in stock, an increase from this time last year. some analysts thought it was noteworthy they would not be making an offer for full control of occidental petroleum. greg abell made heir apparent in 2021 was reaffirmed over the weekend. buffett says he expects whenever he steps down as ceo come of that is a big question. it will be business as usual in terms haidi: haidi:. buffett had strong views when it comes to the banking turmoil. su: he wants banking executives held accountable and pointed to first republic come a calling their loan practice of offering jumbo coming on government act interest from 10 year fixed-rate loads -- loans a crazy proposition and said the bank was doing it in plain sight in

the world ignored it until it blew up. first republic collapsed last weekend. the fbi see took it over. j.p. morgan took it off the hands of the fbi see and buffett called what he said messed up incentives and banking regulation part of the problem as well as poor messaging by regulators, politicians and the press. he says what is referred to as the banking turmoil. he says he can't imagine a scenario where u.s. lawmakers will allow the u.s. to default on debt, which would be disastrous for the u.s. economy. shery: su keenan in new york. keeping an eye on earnings, we are nearing the end of the first quarter reporting season in china. annabelle joins us with a recap. what are some of the key takeaways? annabelle: not as much of a bang for chinese stocks.

we are nearing the end of reporting season. this looks at firms lifted in shanghai. what it shows us is earnings growth was 2.5% in the first quarter. that's reversing that downtrend we had last year, particularly the 6.5% drop, but we are a ways off at double-digit growth quarter. investors in the market who had been looking to put their hopes on strong corporate earnings coming in the first quarter. a little weaker since it came online at the end of last week but goldman sachs have been taking a look at the numbers and their readthrough is impressions remain. the epa downgrade cycle has not peaked. on a positive note, they say stocks are expected to pick up in the second quarter because growth momentum is looking strong.

despite further pressure from a sluggish lending market and the uneven consumption recovery. haidi: china's economy, where we go in terms of the rebound is a cause for asian stocks this year. annabelle: that and the direction of the u.s. dollar will be the two big factors to see whether asian stocks can recover from the biggest annual drop. investors are looking at where can be the next big opportunity given some of them have put a fair bit of money into mainland china. hsbc is one of those saying they see a further rotation in the india from korea and taiwan. it does back it up in terms of not only global funds. they bought a net $2.5 billion of indian shares over the course of the first quarter and roughly offloaded the same amount of

taiwanese stocks. taiwan and korea, these have outperformed in 2023 versus the asia-pacific index here in yellow. what could really change that is the heavy reliance on both korea and taiwan have on the u.s. and geopolitical tensions, that's another focus. haidi: coming up, concerns over pyongyang, bringing the leaders of south korea and japan together. this is bloomberg. ♪ stitch fix really gets me and what i need. even better? they save me a trip to the mall. it's easy: i share my style, size and budget. and they do the shopping for me. stitch fix sends me things that fit and make me feel like a more stylish version of myself.

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>> i sincerely welcome the visit of the prime minister. back in march when i visited tokyo, the prime minister and i agreed to resume the shuttle diplomacy. only after less than two months, the prime minister made the first visit by a japanese leader to south korea in 12 years. i am no less aware of the need to strengthen japan-south korea relations. based on that, i decided to make an early visit to south korea this time. shery: the leaders of japan and

south korea, the first summit in seoul in 12 years. the clear strategic benefits for both countries to improve bilateral ties but significant challenges remain. great to have you in the new york studios. this move by the president to warm up ties with japan, not necessarily popular to mess cleat in south korea. >> very unpopular. he's already suffering from low popularity and his polls went down after he made this decision to improve ties with japan. shery: why did he have to do this? sue: he is a believer having a few chair beneficial relationship with japan. we want to improve relationship with japan and korea-japan relationship in recent years was at historic low. they always had tense

relationships but last several years, it has been really bad. shery: which has been a headache for washington. how well does this sue: bode for president biden? sue:for washington in the united states, we want nothing more than two liberal, mature democracies to get along. this has always been a concern for the united states, so we welcome it. washington welcomes the bold decision to improve ties with japan. haidi: how much political support is there domestically? sue: he doesn't have a lot of support. the opposition party and leaders are criticizing him. domestically, it's an unpopular decision but north korea tested some 100 missiles. 30 tests this year. they are spending and modernizing their nuclear missile program. north korea is going to be continually doing this.

there on this path for more provocations and expending wmd. there is a reason for south korea and japan to work together. they need to do more intelligence sharing and work together to deal with the north korean threat. haidi: the north korean threat but also the wish more broadly to contain a rising china, in terms of trade and strength when it comes to broader regional security. how big is the appetite in terms of that china containment strategy and how challenging is it given they remain the biggest trading partner for both sue:? it's more challenging for south korea. china is south korea's number one trading partner. south korea has always been hedging between u.s. and china, just walking a very fine line. it is a very big concern and the

president wants more value-based from policy and work with like-minded allies. you mention russia's invasion of ukraine, the region is very complex and complicated and we have north korea and wmd's. there's every reason for south korea and japan to work together in this is a great opportunity. it is not going to be easy because domestically, this is not a popular issue. shery: which makes me think how long will this really last? we have sort of some resolution with the issue of comfort women, women constricted for sex, sex slaves, essentially. sue: that history of comfort women was concluded and when he came in, he scrapped the deal. that was the memory, the japanese thinks about this time around. we know this is an unpopular

issue and we have a national assembly election in april. what happens with that election? but president yoon has at least four more years. hopefully japan and korea can get somewhere before it changes to a progressive administration and we are at that stage again where we have to rethink about the issues. shery: how does the korean public feel about china? in the u.s. come a there's bipartisan consensus containing the rise of beijing. sue: it is very interesting. china is south korea's number one trading partner, hugely important economically. but china is very unpopular in terms of public perception. its lowest in the worldwide survey. the view is lowest in south korea and this came about after china boycotted and sanctioned south korea firms over the

missile deployment. the south korean view is very low, even lower than japan. shery: i wonder if that helps the administration? sue: we do you need him to play a positive role knowing he's in a difficult spot. help us out a little bit. shery: great to catch up with you. director of the asian program at the wilson center. you have china at play as well. tune into bloomberg radio to hear more from the big newsmakers and get in-depth analysis from daybreak team broadcasting live from her studio in hong kong. when timor ahead. stay with us. -- plenty more ahead. stay with us.

haidi: a quick check of asia's business flash headlines. westpac is expecting a tougher economic environment after a first-half profit that edge slightly above estimates. the ceo says he expects intense mortgage competition to negatively impact westpac's margins, echoing sentiments from us really is other big banks. dbs has been hit with further capital requirements.

customers on friday had trouble accessing the banks apps as well as atm services. a similar incident happened in march. the latest outage was called an acceptable, raising the required capital by 1.2 billion u.s. dollars. google will reportedly incorporate more ai conversations, short videos and social media posts in its search results. the wall street journal says it's a response to shifts in how younger users access online information. coming up, previewing china's pmi and inflation data and an exclusive in a you with the cfo of, sue. we will discuss the latest earning result and the outlook on china. this is bloomberg. ♪