>> a very good morning.

welcome to "bloomberg daybreak: australia." >> we are content down to asia's major market opens. >> i'm shery ahn. the top stories this hour -- u.s. inflation shows signs of cluing, giving the fed room to's pause, but washington's -- to pause, but washington's debt ceiling impasse is still a problem for traders. >> emerging-market debt and financial stability. >> and disney with a smaller than expected loss on its streaming tv business while subscribers missed estimates. international theme parks, returning to profitability. the asian session had a lot of volatility in the regular session. the s&p finishing with modest gains. the nasdaq 100 managed to finish at the highest level since august. yields were down. tech stocks rallied.

the 10 year yield at around the 344 level. the two-year yield falling before the 4% level -- below the 4% level. the inflation number, growing less than 5% year on year for the first time in two years. we are seeing oil gaining ground in the asian session after falling in the new york session. we had data showing a buildup in u.s. stockpiles. after hours, we are following disney. sales and profit coming in line with estimates. perhaps, investors not too happy with the fact we did see them lose subscribers for disney plus for a second consecutive quarter. haidi: u.s. inflation did show signs of moderating in april giving the fed room to pause interest rate increases soon and potentially even beyond that. let's bring in our correspondent from washington -- correspondent in washington.

there's expectations a rate cut could come sooner, what did you make of the inflation print? >> it is heading in the right direction for the fed. headline inflation coming in below 5% for the first time in a couple of years. even on this core reading the fed looks at which looks at services. that is also showing a pronounced slow down. that's being impacted by the falling cost of hotel rooms and new cars, airline tickets. all heading in the right direction. there was some offset from rents and shelter costs still being quite high. baby formula rising by the most on record. the broader inflation story, there's certainly pressure in the system mitigating against rate cuts by the fed in the near term. most are looking at this objectively today saying prices remain high, but less pressure on the fed to hike at least -- to hike or breathing room for

some months. >> we continue to see the stalemate over the debt ceiling discussion. treasuries becoming more expensive to ensure. the bonds of mexico, brazil. is a developing economies. how much concern -- these are developing economies. how much concern is this for the economy i guess? >> it is clearly a negative look for the u.s. president joe biden was making that very point, saying if the u.s. was to default on its debt, it would mean a recession in the u.s. and would have global repercussions and hammer the u.s. repetition globally. very strident remarks from the u.s. president. things seem to be -- there is noise around both camps ahead of another meeting on friday but the fundamentals have not really moved, the

republicans want big spending cuts before they agreed to raise the ceiling for what the u.s. government can borrow, the administration saying they are going to run out of money very soon probably by the end of june, they need to have a clear lift in terms of what they can get out there and sell and raise in the public market. still a pretty intense standoff -- tense standoff. . as president biden was saying today, you can see was happening in the markets, it is certainly not good given the -- given the strains on the u.s. and global economy right now. shery: that u.s. debt ceiling is one of those risks the global economy faces. the finance ministers and central from the world's wealthiest nations, gathering in japan this week to discuss this growing list of urgent issues. our chief north asia correspondent, stephen engle, joins us now. the laundry list, very long for policymakers this week. stephen: absolutely.

they will all be addressed and even more pure would a lot on the g7 ministers and central bank governors meet in northern japan. the northwest side of -- north of tokyo. we are going te u.s. treasury secretary, who will likely meet with the press early this afternoon as the meetings begin this afternoon and run through tomorrow. we are likely to hear from the japanese finance minister as well as the boj governor, among others. a long litany of issues. we were in the risk if you want to collect out of having the debt ceiling impasse in the u.s. kind of overshadowing joe biden talking about how the world will be in trouble if the u.s. defaults. janet yellen has talked at length about the economic and financial catastrophe, if the u.s. defaults. that could be central in many people's minds today.

those other issues about global financial security, given the u.s. bank failures from silicon valley bank and others. but again supply chain resilience will be a key issue as well. we are having the finance chiefs of some of the developing nations, non-g-7 nations coming, invited by japan to attend here the so-called global south. we will get finance ministers from brazil, india, indonesia, singapore, as well as south korea, of course on the heels of kishida's visit to south korea. what janet yellen has talked about is the issue of friends shoring. there could be a greater coalition trying to gather here beyond just the g-7. of course china is not represented here in the just seven. but china will be on the backdrop -- and the g-7 but china will be on the backdrop of these talks.

more efforts to french or supply chains among like-minded economies in the world. on the back trouble all these talks will be the war in ukraine -- back of all of these talks will be the war in ukraine. some sort of communique, a show of unity, condemning russia's were in ukraine. a long list of issues, inflation will be at the backdrop, u.s. cpi, better than expected, but again remains sticking europe -- sticky in europe. haidi: stephen engle with a litany of issues to be discussed by leaders. coming up friday, an exclusive conversation with janet yellen from the g-7 finance ministers' meeting taking place in japan at 3:30 p.m., if you are watching and hong kong. let's take a look at the market set up when it comes to the open asia -- open in asia. annabelle: the big focus today

is going to be how traders react to the u.s. inflation numbers that came through. we are just below that 5% mark. really the readthrough we are getting from traders so far is the numbers are still to elevated to really signal we are out of the woods just yet. you can see we are pointing to a mild drop for the open incident. most markets are looking for quite range from trading. more things to consider including a japan of course, we have that earnings season underway. more numbers coming out including softbank later on. in terms of other asset classes, we are tracking bond yields in particular, at the front end of the curve, given the moves and treasuries, the retreat with traders still pricing in that the fed is going to pause as soon as next month. currencies, gaining against the greenback. the aussie, trading flat. the other thing on the agenda today is the chinese inflation numbers.

those are due out later, the cpi, ppi. we are on the cusp of another downtrend. cpi for instance is expected to come in at .3%. the biggest drop in producer prices. what this means from the pboc's we have more room now for further support from policymakers. shery: we do have more news on china's regulatory side of things. vonnie quinn has the first word headlines. vonnie: china pointing a little known government official as its top financial regulator. the former banker was most recently serving as a vice governor of the province. he will oversee the $61 trillion financial sector including banks and insurers. some market watchers were expecting the role would go to someone with more seniority. u.s. federal prosecutors are examining shortselling in recent weeks after the collapse of three regional banks. reuters excites a source saying the banking turmoil is an area of interest for the justice

department. a member of president biden's council of economic advisors earlier told us regulators are closely watching short sales in the banking industry but the situation is still under control. bloomberg has learned ecb officials are starting to accept interest rate hikes might need to continue in september. sources say some policymakers from across a spectrum of the governing council think two further quarter-point hikes may not be enough to tame consumer prices. that could mean a possible third move in september. that would bring the deposit rate to 4%. icahn plunged 16% after disclosing a federal inquiry into its practices. . they say u.s. attorneys are seeking information on governance, securities offerings, and dividends among the materials. separately the firm hit back in detail for the first time against a report from short seller hindenburg research which claims the company inflated valuations for some assets. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. ♪

this is bloomberg. ♪ haidi? haidi: disney plus, reporting a drop in streaming subscribers. they see the competition as weakening. this is bloomberg. ♪

>> cpi is cooling. >> it's a sign of inflation. >> the fed is making progress on inflation. >> inflation is still running close to 5%. >> this is still going to keep the fed focused on what they need to do. >> the fed will take this as encouragement. >> they could justify a pause. >> i don't know how much of a difference 25 basis points makes at this point. >> it will keep rates at this level or a little higher. >> keep rates firm throughout the course of the year. >> until they see confidence inflation is going back to 2%. >> it is hard to think the fed will see anything here that tells them they are on that path to 2%. >> this is just another drop in the ocean. shery: some of our guestsshery: on bloomberg to be reacting to the april cpi reading. our next guest says the drop in the headline number was largely helped by falling energy prices and improving supply chains, but further reductions

could prove challenging. oaktree diversified income fund portfolio manager daniel p. joins us now from our los angeles bureau. great to have you back. the markets despite the skepticism about inflation continued to price in fed rate cuts. perhaps no pivot yet in your view? >> have to say the outright level of interest rates continue to make credit very attractive for the income potential they can provide investors. looking aside from the rate moves in the markets, the impact has been yields are outright high, especially for the investment grade markets we invest in. high-yield bonds are yielding 8.5%. broadly syndicated loans, almost 10%. some forms of private credit, over 12%. double the income as compared to a year ago. not in a bad idea we think

to lock some of it and given the volatility we are seeing in rates. you mentioned the fed's swap market still pricing in cuts for the end of the year. we think that type of a pivot probably needs to be associated with something much worse happening in the economy. we have a little bit of a taste -- got a little bit of a taste of that with four u.s. banks failing but the fed still went ahead and did its tenth consecutive rate hike. we think they may need to hold rates higher for longer to continue to combat inflation. shery: how problematic would that be for borrowers? refinancing debt in this environment? >> that's the right question to be asking. the increase in rates is hurting borrowers. some are more vulnerable than others. especially those with low floating rate interest payments or looking to refinance their debt. it is costly right now. within defaults could creep up -- we think defaults could creep up. the market is in a better place than it was answering prior

recession -- and during prior recessions. so many were able to tap into the new issue market and extend maturities. you are not seeing an impending maturity wall for a few years. but as ever it is always important to pick your spots. we had oaktree focus on bottom-up credit selection. avoiding the losers is part of our investment approach. especially today. haidi: of course oaktree tends to do very well when it comes to tons of high volatility and uncertainty and potential distress. when you talk about picking the spots, reserving capital to potentially deploy later, what's the strategy? >> volatility in the markets creates pockets of opportunity would love to exploit. i think right now volatility would probably persist given the microeconomic backdrop. of course there's talk right now about the debt ceiling and deadlock in washington. most of the focus is on the worst case scenario.

and that something does not get passed, the limit is not lifted and the government goes into a default. the impact that could have on the economy in the market -- and the markets. let's focus is being paid on the more likely outcome that things do get passed. the second-order impact of that which we are really focused on which is the issuance of debt in the market needed. we will expect to see more issuance of treasuries than we have in the past. we are concerned there may not be as much demnd as supply. the impact that could have on prices. there's a couple key reasons of that. the fed has been the biggest buyer of treasuries recently. but has grown its balance sheet. it is doing quantitative tightening, by more treasuries. -- buying more treasuries. china is really out of the market right now. the other buyer. given geopolitical tensions, it is hard to know if they would be coming back into

this. haidi: what you said about treasuries is interesting. already we are seeing t builds behaving like junk bonds, 5.5% for june 6. do you expect that to potentially see another leg lowe r? >> in times of economic weakness and recession, there tends to be a flight to quality and treasuries become a lot more attractive. but with an over issuance of treasuries, like we have not seen, we wonder if that supply can really be soaked up or not. and if treasuries do have higher yields and continue to offer higher yields, it means the markets will be more attractive in particular i mentioned the turmoil in the banking sector. we think this could create volatility and attractive opportunities as well generally with less capital formation as a result as you see banks pulling back from buying clo's

and syndicated loans, creating more attractive opportunities in the private market for alternative wonders like us. we expect there will be a pick up and opportunities in the private markets, with more attractive terms, but a protection in the form of covenants and more waste for us to -- ways for us to win for our clients. shery: have within the worst of the banking turmoil -- we seen the worst of the banking turmoil? >> i think the turmoil would lead to a pullback in the desire of the banks to finance, and that will affect capital formation as i said. the fed is certainly seemingly focused on this area of the market and shown that is going to do what it takes to ensure financial stability. so i don't think there's systemic broad risk beyond what we have seen but i do think further volatility is ahead, as is going to be less liquidity in the markets generally.

>> always great to chat with you, danielle poli. you can get around above the stories that you need to know to get your day going in today's edition of "daybreak." take a look at the disney earnings as well as inflation reads. you can customize dayb settings so you can use on the industries and assets that matter to you. this is bloomberg. ♪

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haidi: shares tumble for icahn after a federal inquiry into its practices, at into a steep slump after the company was accused of inflating its stock price.

let's get more from chris d. in new york. what do you know about the latest? >> unfortunately, not a whole lot about what the southern district of new york is looking for from icahn enterprises. we know from the securities filing today that they have requested corporate government documents, securities offerings documents, due diligence documents. we don't know if they are investigating. we just know this is an import. we don't know if there's some sort of formal investigation into this by the prosecutors. we only know what they have asked for. icahn says he will cooperate. the persecutor's -- the prosecutor's office for years has gone after mismarking assets schemes, hedge funds and private offices. not quite at this level obviously. icahn is a legendary

wealthy investor. this is high-stakes if indeed they are investigating. shery: they have shot back in detail against hindenburg research, what did they say? >> he called them blitzkrieg research because he says they are trying to destroy companies. this has been a common theme among targets of hindenburg research. they are immediately lasted by whoever they are targeted by. -- blasted by whoever they are targeted by. they have been bulletproof so far. icahn is a legendary fighter when it comes to battles. the hunted has become the hunter here. it'll be interesting how this plays out with a notorious seller taking on icahn wall street. shery: here's a quick check of the latest business flash

headlines. adani enterprises, considering selling stock months after being hit by a short seller attack. . the company has yet to say how much money it intends to raise, but the board will meet saturday to discuss the plan. stocks of the adani group sare record losses in january after hindenburg research accused them of fraud. adani has repeatedly denied the claims. sources tell bloomberg singapore sovereign wealth fund gic has emerged as the front runner to buy a stake in german industrial gas maker messer. the investment firm assent -- is sent to inject $2.2 billion into messer for a 20% stake. toyota has released a conservative profit forecast which aligns with analyst projections. the japanese carmaker shares close higher after also announcing plans to buy back as much as $1.1 billion of its own stock. the ceo said that by april of

2026 toyota will sell, 1.5 million ev's a year and roll out 10 new models. google's introduced a foldable smartphone to rival samsung. the pixel fold is the company's first entry into the growing category and comes with a 7.6 inch main display and a 5.8 inch external panel. they tout this is the thinnest foldable in the market which will be sold in the u.s., the u.k., germany, and japan. plenty more to come on "bloomberg daybreak: australia." this is bloomberg. ♪

shery: the chair of the u.s. public company accounting oversight board says significant deficiencies have been found in its audits of firms in hong kong

and china. erica williams told us exclusively investors are better protected following the reviews. >> we inspected one firm in china and one in hong kong and found sufficient deficiencies, consistent with the deficiencies we found in inspections for other audit firms that have been inspected for the very first time. what we've seen as in many instances, those improve over years. we do know this firms we inspected covered 40% of the u.s. market share of companies that were audited by china and hong kong firms. by the end of this year, we would have -- will have inspected the firms that cover 99% market share. we looked at the most significant companies that were audited by these china and hong

kong based firms. >> if i a u.s. investor and i'm invested in some of these companies that are u.s. listed, should i sell them, are you going to kick them off the exchange? went i my going to know that -- when am i going to know that? >> the holding companies accountable act says to investigate completely and put out a report shedding unlike on what we found so investors -- shedding light on what we found so investors can make decisions and also to put pressure on the farms to improve -- firms to improve. our job is not to determine whether or not these com panies continue to be listed but to provide transparency in the reports. >> was the work easy? did you get what you needed? did you have to fight for any of the details included in the audits? this was meant to be a kind of

open book look at what is happening here. was it that. ? >> yes, celestia -- last year, we entered into an agreement with the prc, and that was a tough agreement. under it, when needed to be able to investigate completely and choose the engagements and the firms we inspect, we need to have access to all the workpapers and personnel, and also conduct their investigations without interference. we were able to do that. we were tough and firm and obtained the information we needed and did have complete access. if the prc instructs us and our investigations or inspections going forward, the board will not hesitate to act immediately and consider whether or not we need to make another determination with respect to china and hong kong. haidi: erica williams chair of the, accounting oversight board.

china names a new financial regulator, li was most recently serving as vice governor of a province and he will oversee this is the $1 trillion financial sector including banks and insurers. some were expecting the world to go to someone with more seniority. let's stick with that appointment. are we seeing investors scrambling to learn more about this appointment? what's been the reaction? belle: it is perhaps an out-of-the-box pick from china's officials. they could've been with someone more experienced perhaps, and a bit more seniority. li was named for this position ahead of other candidates in the market including the heads of the china securities regulatory commission. let's talk about the reaction beyond being unexpected here. some investors are pointing out what li does bring to the role,

his insights into provincial government operations and finances. i could help them tackle the debt issue and china. this chart takes a look at local government bond issuance, still rising at historically elevated levels. goldman sachs, saying for instance this is now the level, nearly 130% of gdp in china. so curbing the risks from this is going to -- to be a key challenge for li. this is really what investors are pointing to as what li can bring to the role, his experience at the local government level and someone who can help perhaps curb the issues associated with the elevated debt levels. shery: what are we hearing when it comes the debt ceiling negotiations in washington? annabelle: morgan stanley's put out a note saying u.s.default

is not a minute but the odds of it happening would increase significantly if lawmakers are not prepared to soften their stance on other side. strategists are paying attention to what would happen if we cross the so-called x date. when the agreement -- when the government would run out of money to pay its bills. the base case is that a default will not occur even if the x date is crossed. . by the scenarios would include -- but the scenarios would include short-term fix and the compromise. if we do cross the x date, morgan stanley is saying the accrual of negative feedback associated with it would be enough to spur a very quick resolution to the impasse. shery: already we are seeing the reaction in the markets. let's get to the first word news with vonnie quinn. >> president trump sing a debt default would drag the u.s. into a recession and have devastating

repercussions across the global economy. is ramping up pressure on a deal to raise the rents -- to raise the debt ceiling. >> if we default on our debt, the whole world is in trouble. this is a manufacturing crisis. there's no question about america's ability to pay its bills. america's's the strongest economy in the world and we should be lowering the debt without a needless crisis in a responsible way. >> george santos has pleaded not guilty after being arrested on fraud and money laundering charges. the congressman was released on $500,000 bond and continues to face calls from both political parties to resign. the 13 count federal indictment also alleges theft of public funds and making false statements to the u.s. house of representativess. santos says he believes he is innocent and plans to seek reelection. ubs bankers assessing credit suisse's concerns about

portfolios, loans in certain countries including indonesia, vietnam, indonesia, and india could lead to the assets being run off or sold. ubs said to be weighing options to address the issue after stepping in to rescue credit suisse. both banks declined to comment. scv will lead a financial facility of more than $200 million for private energy's solar project. the first syndicated loan since it was sold to first citizens bank. the california-based lender was known as a climate bank. the deal reflects svb and first citizen's commitment to solar financing. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. ♪ haidi. haidi: take a look at what we are watching when it comes to disney and the reaction after hours -- in after hours trading.

4.5 percent lower when it comes to trading in disney. the streaming loss, narrowing. we saw shares dipping when it comes to the miss in subscriber numbers. the question is competition and how it does out of that. profits came in in line with expectations. a smaller than anticipated loss when it comes to tv streaming and some growth when it comes to the parks, in particular with the ones reopening around the world. some strength seen in china as well. net income being boosted by 23% for resorts and consumer products. let's get some analysis on disney and the outlook with our next guest, saying the company has an edge when it comes to the streaming business over its competitors, although it's other highly profitable offerings will weigh in as well. debbie t. joins us now from nashville. -- david traynor joins us now from nashville. >> the whole streaming thing is

overblown. it's a false narrative. it was never meant to be a profitable business. it is a loss leader for other profitable businesses and disney is by far in the best position media and content company to monetize content. i think it is good that people are recognizing streaming is a loss leader. it's not supposed to make money. it's good that they are cutting unprofitable customers. it will focus on more profitable customers. the streaming news is the wrong thing to focus on. the right thing to focus on is bob iger being back in the stock going up. -- and the stock going up. haidi: you have so much faith in the leadership. you are saying $100 for the share price is cheap. that it can get to $130 pretty easily. >> that's right. that's just assuming margins start to creep back -- not to where they were at their heights, but about two thirds of the way there. we are not saying the company needs to be as profitable as it once was. if they get two thirds of the

way there, $130 easily. we think leadership is going to do that and we think disney remains the best position to media company. the longer we go on in the streaming war, the more we will see netflix is going to lose. disney's averaged around a billion plus in free cash flow every year over the last five years. even more over that in prior years, excluding the fox acquisition. netflix has lost over $2 billion a year over the last five years. netflix is not a profitable business. it never has been. they burn billions. investors are getting tired of that. they are running out of capital to just under price and undercut in the streaming business. and that is a healthy thing. as the rest of the streaming businesses get more rational. shery: david, if streaming is just a way for disney to funnel consumers into other offerings, where do you see the strength there?

>> i think streaming is just another way for disney to get people into the top of the funnel where they can monetize them in parks and merchandising, and the other ways that disney makes money. that is the key difference in the disney business model versus the pure play streamer like netflix. netflix is a one trick pony. they sell you content over the internet. there's not a lot of competitive advantage there. disney has a lot of competitive advantage and its brands and parks and merchandising and its ability to monetize content in multiple ways. that is what is going to win in the long run. shery: you seem pretty glad bob iger is back. what do you make of his cost-cutting measures and his attempts to really reshape the workforce as well? >> i think disney kind of got a little too caught up in some of the non-core business related themes.

and many of the sort of cultural themes that were going on. bob has come back and to set things back to the way they were when he was running the business at the top. the returns were never higher. he took one acquisition after another and created real shareholder value. he knows what he's doing. he's been there and on that. a return to that kind of study leadership -- steady leadership focused on creating shareholder value is something investors should pay attention to now before the rest of the market catches up. haidi: david trainor, we appreciate your time. up next, we take a look at crypto, bitcoin falling below $20,000. concerns of an institutional pullback. would take a closer look at liquidity concerns as well as how that is playing out in the crypto sector. this is bloomberg. ♪

shery: turning to crypto, it has suddenly become a bumpy ride again for traders. bitcoin fell above 5% in a matter of minutes in new york, with growing concerns about liquidity and the regulatory crackdown. su keenan joins us now with the latest. what happened? >> it's been an action-packed week to begin with. in the latest session, we saw bitcoin drop about 5%. it was in a matter of minutes. there was a lot of talk about perhaps speculation, the

government moving some assets around. a lot of concerns about liquidity and regulatory issues which we will get to that are the bigger problem. and the swing for bitcoin comes on the heels of the craze earlier in the week for these micro penny tokens, where they bought four point -- point 4 trillion of the tokens. binance shot up in the stratosphere, raising the question, is meme coin the next big thing? then it nosedived 60% the next two days, answering that question, putting more so the focus on binance. binance appears to have lost a lot of market share amid change to its b structures and more importantly a wider regulatory crackdown on the crypto universe, and binance is under scrutiny from the sec, the cftc,

the irs, and justice department. the cftc suit it for breaking american derivative rules -- sued it for breaking american derivative rules. they are super focus on trading volume and liquidity. is wall street at the point where it is ready to shun these assets? bloomberg is reporting two of the biggest market makers will now be withdrawing from the u.s. crypto market due to regulatory concerns, jane street group and jump crypto. galaxy moving operations offshore. and today on capitol hill, a rare joint meeting of two house subcommittees, meeting to address rules and new laws. this just underscores the momentum for new legislation and a crackdown has intensified coming out of the meeting there were questions of whether the sec should work with the cftc in going after crypto issues. one house member asked, do we even need any rules at all?

others argued laws are muted because there are too many gaps in the regulatory controls. back to you. haidi: stay with us. i want to bring in our next guest who thinks crypto has entered a new bull market but faces significant volatility and mounting regulatory pressures and challenges. we have the chief investment officer, matt hougan, joining us from boston. layering on top the fact that we have seen the bridges to traditional banking, silver gate, signature having collapsed, there's a lot of challenges before we get to the bull part of the market you are predicting. >> there absolutely are a lot of challenges. here in the u.s. specifically around crypto. that is what su was mentioning. we are seeing market makers like jump exit the crypto market in the u.s. or moving operations offshore. there is a big

regulatory crackdown here in the u.s.. abroad, there's a different story. there is regulatory progress in europe and the middle east, in hong kong and singapore, as part of what is keeping the crypto market afloat. but for sure we are in a challenging period. i think we will eventually exit this period with new rules and clear regulations and that will contribute to this multi-year bull market i am talking about. but we have to go through this difficult period first before we get to the other side. >> how long does that take? you are right, we are seeing this sort of geographic force taking place. hubs like singapore, a renewed focus on the middle east as well, do we see a future where we see that industry kind of ring fence when it comes to certain markets? >> have a great deal of confidence in the u.s. eventually getting it right and adapting the rules we need to make sure that crypto thrives here. it is a massively disruptive technology and a fast-growing

market. we want it on our shores. despite the challenges we are seeing at the regulatory level right now, i think there's a pathway forward and there is bipartisan support in congress to get us there. challenges, but we will work through them. how long will it take? i suspect we will see six months, nine months of volatility and chop. the big signal to me will be, can we get a piece of crypto legislation through this divided congress this year? if we can achieve that, i think that will be the first green shute that we are entering that period of regulatory clarity in the u.s.. to me it is a matter of one, not if, but there is volatility in the interim. su: some would say that could be an understatement. there is volatility. let's talk about the difficult period you're talking about. you not only had crypto winter and then a rebound in the first quarter, but then you had the bank failures, and these were the two biggest crypto banks. how does the fact that the crypto banks are an area of

concern and now wall street even investing in this asset class is an area of concern affect your products which expose people to crypto? >> it's important to have a little bit of context here. we had banking blowups and regulatory concerns, but on each on those -- each of those measures, we are at a vastly better place than we were three or four years ago. the banking infrastructure, even absent, silicon valley bank and signature and silver gate, it is much better than it was in 2016, 2017, 2018, 2019. i still think the trends are on our side. we have been providing safe access to crypto investment products for more than five years. we have seen bull and bear markets before. i think we are in a multi-year bull market. it's never easy to invest in crypto when it's fallen a lot. but historically, those are the periods when fortunes have been

made, and the bit sorts out the way that i think it will, with regulatory progress, with technological progress, people could look back on this period, this volatility is an exciting moment to get in. we will seek. -- will see. su: one of your products had a good performance in the first quarter, but your firm, unlike binance and coinbase, not under the regulatory spotlight. can you comment at all on the predicament these firms are in? we know coinbase has said they will use every penny they have to fight some of the crackdown that is coming their way. >> i think it is important to realize the securities laws and the rules that have been established are not fit for purpose for the crypto industry. they don't work within blockchain and they don't work within crypto assets. we need new rules and regulations. that is why coinbase is willing to go to the mat and fight in the courts, to force the regulars to come up with rules that will help this industry thrive. i think we should all be rooting for that. after all, this is the

best-performing asset class in the world over the last 3-10 years. one of the fastest growing industries in the technology space. there is a huge amount of venture capital and huge amount of intellectual capacity moving into crypto. we should want rules that support that. and we don't have those right now. that's why coinbase is going to push forward. i think ultimately, they will be successful. they are asking for reasonable accommodations that will allow the industry to thrive. the same thing that the internet asked for in the 1990's. that is where we got the internet boom in the u.s. and not in europe. su: i hear you on the good stuff, what is the wildcard in your view, and 10 seconds, for your industry right now? >> the extreme risk would be a very harsh regulatory crackdown and no changes or adaptations to the rule. every investment has risk and opportunity. they are both in crypto. and we will see how it turns out.

shery: great to have you -- haidi: great to have you with us. be sure to turn into bloomberg radio, too, you can hear more from the day's newsmakers, broadcasting live from our studio in hong kong, you can listen in via the app on bloomberg plus or bloombergradio.com. much more ahead. this is bloomberg. ♪

haidi: take a look at this data when it comes to food prices in new zealand. some supportive signs of cooling inflation when it comes to food prices. we are seeing gains of half a percent month on month, pulling back from the .8% from the month earlier. if you break it down, we are seeing fresh fruit and vegetables seeing a decline of about 3%. groceries still seeing a gain of about 1%. still, across the board, we are seeing some inflationary factors including the acceleration of wage inflation. pockets of the market do expect the rba to press ahead with another hike this month.

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