shery: you are watching "bloomberg daybreak asia". we

are counting down to asia's major market opens. heidi: investors flock to bonds and haven assets as u.s. data suggests a cooling economy. jamie dimon tells bloomberg he thinks that they are likely to overreact in their response to the bank turmoil. the g7 meetings, we will be speaking with the oec secretary gentlemen -- -- the central bank, the key rate 7.75%. this as the rate is the highest since 2002. a tight monetary conditions de seller terry -- lower inflation expectations support the hold. not a cut as of yet, that core inflation remains elevated but the central bank is contending with political uncertainty as well. inflation fell below 8% in

april, central bank is holding rates steady at 7.75%. take a look at how u.s. futures are trading. a little bit of upside after a mixed finish on wall street. s&p 500 falling, and pac west seeing its worst performance among lenders. deposits falling. it was really all about eco-data. the jobless claims reaching the highest since 2021, producer prices rising less than expected. inflation trending lower, growth weakness perhaps, the fed can finally pause and traders even speculate in potential rate cuts this year. treasuries rose in the session. the 10 year yield falling below the 340 level. haven assets are rallying. oil is rebounding in the asian session after falling towards $70 per barrel, with the bearish economic indicators and weakness in the physical markets. annabelle: when you have signs

that the fed's tightening campaign is taking effect, that stronger dollar is something that is already going to be weighing on asian assets. something else is coming into the picture, the april credit data from china. issuance really plunging in the month of april, perhaps some seasonal factors coming into play. the measure of aggregate financing coming in at 176 billion u.s. dollars for the month. this is a broad measure of credit in the economy. what this tells us is that these metrics are both short of analysts estimates. another signal that the economic recovery in china is becoming increasingly uneven. you have consumers are on services, but on the other hand, factory activity is contracting. if we change now, the ramifications for this, something that will be playing out across asset classes. the commodity spot index, 18 month low. trade data has been playing into

that. it also has ramifications for more commodity trade link currencies. you can see here, equities looking to be fairly range bound. is that move back into those safe haven plays, the yen included, it has been really gaining on that data coming out of the u.s., as well. shery: let's really go into those numbers. jobless claims all pointing perhaps to slowing u.s. economy. the latest data is failing to convince one top official that the fight against inflation is over. global economics and policy editor kathleen is here. already seeing recession signals in today's numbers, what does neel kashkari think? kathleen: not enough. when you look at producer prices, another positive surprise. this is wholesale prices. the second number in terms of

inflation important to the fed and investors. we did see it affecting the markets a bit today. 2.3% year-over-year on the headline in april, that is down from 2.7 in march. the core goes from 3.7 in march down to 3.4% year-over-year. services prices, health care, but remember cpi was down below 5% year-over-year just a couple of days ago. 4.9%. that is the first time that has happened since 2021. jobless claims really jumped. they did not just move a bit higher, 264,000 from 242,000. highest now since october of 2021. even neel kashkari, who has been one of the more hawkish fed officials says it is not enough. they were surprised by high inflation, surprised by how persistent it is.

he wants to see more progress. >> inflation has come down. but it is still well above our 2% target. we have seen some softening in wage growth nationally, but it is very mixed. kathleen: still a bit too high in the latest jobs report, average hourly earnings actually accelerated year-over-year. 2.44% to 4.4. not good enough for neel kashkari. we have about six weeks left to see if it will be good enough for other fed officials. heidi: the bank of england hiking rates for the 12th straight time. andrew bailey says more hikes are possible. you can see why he says that if you look at the data. kathleen: 12th rate hike in a row. if you look at where consumer prices are and when you look at where the key rate is, you can see there is a big gap. if you are in the camp that says, you have to get your key

money market rate if you are the fed, this rate if you are the be away, above inflation rate, there is a long way to go. in the policy statement, the bank of england did keep the door open to more rate hikes, not surprising. depending on what wages do, wages are running over 6% year-over-year. well above the key rate. services inflation, sticky in the u.k. just like it is sticking in other parts of the world. andrew bailey did seem to open the door to a rate hike pause. >> we are approaching a point when we should be able to rest in the sense in terms of the level of rates. we haven't seen the evidence yet to give us a strong sense of the. of that. kathleen: andrew bailey got a lot of pushback at his press conference, people are saying, do you still have credibility on the inflation fight in february when they set the rate at or

percent. they said it might be the peak. now in may, they are raising to 4.5%, saying inflation will still be double the target early next year. one more person to mention is michael saunders. number b.o.e. policy board member. he thinks this could be there last hike. why is he extra important? he was extra hawkish at the b.o.e.. people are putting a lot of weight on his view that may be the b.o.e. is closer to being done. shery: thank you, kathleen to put those voluntary policy moves into perspective. -- monetary policy moves into perspective. jamie dimon saying that regulators should do whatever they need to do to and the banking turmoil. he spoke exclusively to us. >> finished the bank crisis. we have had uncertain policies on mergers. you have to assume there will be more.

the fbi see, federal reserve, whatever they need to do to make it better, they should do. be thoughtful and very forward-looking. so me things for quite a while. shery: banks are facing billions of dollars in extra fbi see fees, to replenish the funds they used to backstop uninsured depositors at signature bank and svb. we knew this was coming. su: to see it get close to finalization, it is bad news for the banks, because they will be paying the lions's share of this, billions upon billions. the fbi see laid out its plan in a meeting, the outline of which is that banks with more than $50 billion in assets will be on the hook to pay 95% of the fees. this is to build up the fund

that was drained by multiple regional banks failures and two in particular. this so-called special assessment that the fbi see laid out -- fbi see-- fdic, it decided that it would ensure all of the deposits, it would make everyone in that bank whole after both of them failed. normally, the deposit insurance fund only covers accounts up to $250,000. other that, it is typically not covered. the cost of that decision was $15.8 billion. in general, large banks with large amounts of uninsured deposits benefit the most, so they will end up paying the most here.

there will be a 60 day period for public comment. they make tweaks on the details, but they are making it very clear that the big banks will pay the most. heidi: what is the latest when it comes to deposit levels? su: this is a place of intense focus for investors right now. as they look at these regional banks which remain in a volatile situation, our deposits rising or falling? the latest information reporting that pac west is seeing a decline in deposits while western alliance is seeing an increase. in fact, the pac west deposits dropped after bloomberg recorded -- reported that they were in talks with a potential investor. they confirmed it and now are reporting in a regulatory filing that last week they saw deposits fall about 9.5% did they have 9.8 billion dollars in uninsured

deposits, $15 billion in immediate liquidity as of may 10. a different story for western alliance. they have actually seen their deposit increase by about makes hundred plus million dollars. -- 6 million plus. the shares of both of these banks have taken a huge beating. with pac west is down about some new 4% this year. is it continuing or are we getting close to the end? it is unclear. annabelle: we are sticking with banking and jamie dimon says regulators should do whatever they need to do to and the banking turmoil. in an exclusive interview with francine, he also predicts that policymakers will take away the wrong lessons on this years of people react -- this years upheaval. >> hopefully that won't happen. the banking crisis, i still

believe it saw its way through and it isn't like 2008. it is getting your the thailand. francine: if you are janet yellen, what would you do differently? >> i think we need to finish the bank crisis. we have had uncertain policies on mergers. you have to assume there will be a little bit more. whatever the fdic, the occ, the federal reserve, whatever they need to do to make a better, they should do. be thoughtful and very forward-looking. some of these things we have known about for quite a while. we have handled svb, signature, first republic, -- i think it is very important. the regional banks, they are quite strong. they are quite worried because the run on deposits. the financial results are good. they will be ok next quarter.

they are earning money, got very good clientele, very diversified. francine: so you are asking janet yellen to get the job done, what does that look like? >> just be prepared for problems. francine: what do we need right now? do we need to look at short-sellers of banks? >> yes. my folks tell me that is not the problem, but if you actually analyzed stocks and short sales, isn't that big of a deal. i think they are partially wrong because as you know, some people are unscrupulous and use other means to go on shore. if you look at the detail, the sec has the enforcement capability to look at what people are doing by name and options, derivatives, and short sales. if someone is doing anything wrong, or people going shorter, they should go after them.

vigorously. it should be punished to the fullest extent of the law. we have no evidence of it, but my experience has been, don't assume too much. francine: do you think things will change because of this? what do you mean by worse? >> more regulations, more rules, more requirements. i do hope they will do it thoughtfully. we love the committee banks. we are the biggest banks to those folks. if you overdo certain rules, requirements, regulations, so many of these banks say they have more compliance people and loan officers. making it hard for them to do business. her out -- there are all ready hundreds of rules in place. if you change the liquidity, maybe not capital. maybe you should do something with deposit insurance. they should sit down and have a very thoughtful conversation about what those things are and what they want the outcome to be. if you look at the present

outcome, a lot of things are leaving banks. and they should. that should be done with the forethought. not be done because you're putting rules and regulations in place and you don't know the consequences. shery:'s now get to vonnie quinn with the first word headlines. vonnie: president joe biden have the meeting with kevin mccarthy and pushed from friday to next week. according to officials, the postponement is a signal that the staff level talks are making progress in the push to strike a deal. the president will instead meet with congressional leaders early next week. u.s. national security and china's top diplomat met in vienna as both sides work towards improving relations. the white house says the two days of talks covered tensions over russia and taiwan among other issues. u.s. and china has both described the meeting as constructive.

turkey's main opposition alliance is accusing russians of meddling in the upcoming presidential election. presidential candidate said in a tweet that russians were behind what he called conspiracies and deepfake content. another opposition candidate has withdrawn from the race after denying rivalry claims. and an alleged sex tape. china's consumer confidence has risen to the highest level in more than three years. it moves to 55 from 53. the university of the thai chamber of commerce say pre-elective spending is boosting spending. consumers have estimated to spent over $886 million. global news, powered by more than 2700 journalists and analysts in over 120 countries. heidi: we do have some breaking news when it comes to who can lead to twitter next after elon musk said he will be naming the new ceo as he shifts to the cto

and chair role. we are hearing reporting from the wall street journal that nbc universal's linda is in talks to the next twitter ceo. we are just getting some supper reporting on that as well. this as we heard that elon musk saying he would step aside from the top job at twitter and become the executive chair and chief technology officer instead. the news really saying that the new ceo would start in about six weeks. he did indicate that role would go to a woman. that comes on the back of him purchasing twitter last october and well followed from that was enormous amounts of overhaul. he said he would only be in the top job for a limited period of time to complete that organizational overhaul. we are hearing that nbc universal's head of advertising linda is in talks to become the new ceo. she has been with nbc for more

than a decade and has been known as an industry advocate when it comes to the field of advertising. more on that developing story as it comes to us. still ahead, more from our exclusive conversation with jamie dimon. he believes the key differences between the u.s. and china can be worked out. before that, oecd secretary joins us to discuss the biggest challenges in the global economy. this is bloomberg. ♪ ♪ (upbeat music) ♪ ( ♪♪ ) woah. ( ♪♪ )

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shery: global finance ministers are meeting in northern japan discussing the biggest issues facing the global economy. of talked to david standing by with a man who is a very familiar to us trillion audiences, being the former finance minister, steve. steve: so much to discuss on the second day here in need gone to. our next guest is mathias cormann, , oecd secretary-general. so, we heard that janet yellen

was talking about the concerns, the catastrophic ramifications of a default or the u.s. with the u.s. debt ceiling issues. we just had an interview with jamie dimon, he use the same terminology, catastrophic i have been asking other people about the importance of the u.s. nondefaulting. nobody seems to want to have that issue overplay the main issues in the global economy right now. how important is it for the u.s. to resolve those issues? mathias: firstly, there are many downside risks in the economy right now. economic growth globally has been weakening and has been a slight uptick in more recent months, but still it is very fragile. obviously, for the domestic economy in the united states and for the global economy, having a sense of a resolution to the debt ceiling issue is very important. all i can do -- i guess it is a democratic process in the united states to resolve my but certainly i would urge all

parties to work through this issue as swiftly and constructively as possible with a view to reach a landing that would be in the best interest of the united states economy and the global economy as well. stephen: can you quantify how catastrophic it would be? mathias: i am not going to put a number on it. there are so many issues and downside risks and uncertainty right now, our focus collectively should be on removing issues, solving problems. there is just no need for a self-inflicted problem that comes on top of all the other issues that we are already facing. stephen: what needs to be done further from policymakers to contain as many contagion or other risk to the banking system following the collapse of svb and other banks, and credit suisse? mathias: we believe the global financial system remains resilient, and it is much better regulated and supervised than what it was in the lead up to

the global financial crisis. the failures we have seen our specific management and governance failures. there are some supervisory implications and issues for regulators to reflect on. the immediate response was swift and effective, well coordinated and certainly helped avoid further contagion and we now have the space to very carefully consider what policy they ought to be. clearly, there is an impact in terms of confidence and perceptions on the market, and that is something we will have to address. stephen: what is your view on inflation? how sticky is it in europe? there seems to be maybe divergent paths from the ecb and the fed. we had the bank president yesterday saying, he is not ruling out a september hike. mathias: short answer is inflation is too high and not coming down fast enough. i would say the united states is

a bit further advanced in terms of the monetary tightening cycle then perhaps is the case in europe. when i would expect is that in the united states, there will be some further cautious monetary policy tightening to get the inflation back to target, 2%. from our observations, we suspect there will be a need for some strong action, still, in europe. stephen: september rate hike? mathias: i am not a central bank governor, but it is very important to get inflation back to target. i know that central bankers in europe and the united states and around the world are very focused on that. stephen: how higher the global recession risks? mathias: -- we're not projecting a recession, but we do see significant downside risk and we need to continue to manage risks and resolve issues. steven: you are here to issue your work on the global tax.

there is some resistance in the united states because they don't necessarily want to open up the multinationals to have everyone tax the big juggernauts in the digital economy. what is the risk of this global tax initiative being scrapped? that would be a bit of a failure for the oecd, and have a separate digital tax? mathias: we would not see this as a failure of the oecd. we are facilitators of a global conversation. when it comes to the global minimum tax, it is a reality now. about 40 countries held a ready implemented or are in the process of implementing it. we believe that 90% of companies , 700 50 million u.s., would be subject to the tax. in u.s., multinationals have been subject to a global minimum tax since 2017.

this is not a new concept in the united states. there is a transition arrangement and difference in terms of the rate, but the concept of global minimum tax is actually already in place in the united states for u.s. international businesses. we do believe that over time, there would be necessary alignment. steven: thanks so much for your time. oecd secretary-general. shery: thank you, stephen. we have more interviews coming up from the g7 including with secretary yellen later today.

heidi: jp morgan's jamie dimon in our exclusive conversation also weighing in on ties between china and the u.s..

he says the two economies have differences and that is ok. jamie: this is a serious subject. anything that relates to national security, i am a patriot first. put that aside. with the government -- what the government should do is have conversations. they will be tough, but they should be thoughtful. certain things our national security, certain things are not. we shouldn't confuse the two. america and china have a lot of common interests. and we have differences. we are capitalists, they are not. it is ok. we can sort it out. we need to keep the western alliances together, not just around the war in ukraine around strategic economic relationships including trade, we can't take trade off the table every time we talk to europe or asia. i would go back in the tpp. i want to keep the world safe

from democracy and want to have open markets, particularly europe. when i was here last time is when we passed ira act. too much social engineering inside of it. also passed off all of our allies. francine: if they start doing more noise on finance, does that her chinese growth? jamie: probably. i think you have already seen investment going both ways coming down. that is ok in the short run. the longer run, you should say -- and the government has got to decide. when congress criticizes business sometimes, there may be true to that. they have to decide what is ok and what is not ok. that is around trade, investment, and sharing ip. francine: you invest right now? jamie: i wouldn't buy sovereign

debt anywhere. francine: why? jamie: i think there is much -- the matter of fiscal stimulus took place, these were extraordinary numbers. not just in the u.s. but in europe and other parts of the world. extraordinary. i think there is a chance you have more inflation than people think. so while the fed controls short rates, you don't completely control longer rates. you could see longer rates ticking up because of higher inflation. even if there is a mild and inflation, but continue to tick up. rates are low, spreads are low. francine: where are you investing then? jamie: central banks. shery: let's see how we are in the asian markets. annabelle is watching. annabelle: that's right.

it is friday. jamie dimon, what he was just saying about sovereign debt, that he would buy it at all, this is interesting when you put it in the context of what we have been seeing. we have been really tracking this light in the 10 year yield, on track for a 10 week side. we are around that 2.7%. we are nearing the of technical support the downside is remaining in tech we are talking about why that is happening. we did get that report that china is asking its state banks to reduce lending rates in order to try and spur some economic growth. you also have investors who think there could be further policy support on the way. we didn't have perhaps another signal that could need to happen coming through in the financing data because we have the aggregate financing as well as

new loan issuance coming in well short of estimates for the month of april. that is another signal to us that the economic recovery is looking increasingly uneven in mainland china. broadly in the session, we are expecting a retreat in some markets, already have kiwi stocks to the downside. nick a futures just coming online, other factors at play. that includes the u.s. data that came out to signal the jobs market is calling, perhaps the fed's tightening campaign is finally starting to take effect. heidi: in terms of a long campaign to try and affect change, softbank watching at the open. i am very curious to see how investors take these very mixed and a lot of still negative numbers. annabelle: a lot of focus coming in on the vision fund. we did see further losses coming

in there, more details on that at the end of the hour. broadly, we saw mrs. on the or year and early losses for softbank and division fund, annual loss of $32 billion. the company is saying the worst is over, but what is interesting is where you take a look at where the share has traded this year. still near 10%. you compare that to the rally in the nasdaq, even in asia, we are seeing didi moving higher. they have all been gaining over the last quarter. softbank says it invested around $1 billion in the nine months to march. that sets up for a total defense folio. certainly a lot of questions around the health of the company and its fundamentals. also very excited about ai, but it has a very consistent we have heard. heidi: we certainly have. more on that throughout the course of the day as annabelle mentioned. vonnie: the largest banks,

billions of dollars in extra fees to replenish the u.s. governments insurance fund. it stems from the regulators decision to ensure all deposits at silicon valley bank and signature bank. the move will cost its deposit insurance fund around $15.8 billion. the bank of england has raised its benchmark lending rate to the highest level since 2008 and says more increases may be needed if inflation persists. the central bank lifted its key rate. officials also delivered the biggest upgrade to growth projections since 1997. >> we are approaching a point when we should be able to rest in terms of the level of rates. we haven't seen the evidence yet to give a stronger sense of the.. vonnie: pakistan's supreme court has ruled the arrest of former

prime minister is illegal and has ordered his release. the political saga comes after he was arrested sparking violent protests across the country. the court ordered he stay at a secure location before he appears at the high court on friday for another case. indonesian president admits there has been no real progress made on the plan to end the unrest in myanmar. speaking at the summit in indonesia, he urged the regional block to resolve the crisis. myanmar is a lingering problem as violence continues. they have a policy of not interference and remains divided on the issue. mathias: global news, powered by more than 2700 journalists and analysts in over 120 countries. shery: island goes to the polls this weekend with key contenders focusing on a similar slate of populist proposals. the opposition wants to unseat

the military but they will need to win 75% of the vote. we will look at why the odds may be stacked against them. >> lives and livelihoods are dominating the election discourse with just over 2.5% growth last year, the thailand's economy is trailing her neighbors. a global slowdown is weighing on its key export sector, driving foreign investors away. all the major parties are promising a similar package. cash handout, higher min wage, and suspension of debt repayment. 52 million voters will be electing 500 members to the lower house of parliament. it is a crowded race and even with polls showing the main opposition party in the lead, forming a government will be a herculean task. the choice of prime minister is

decided by the lower house and 250 members of the senate. unelected and mostly handpicked by the military. in theory, the opposition will need 75% of the vote. he is backed by billionaires, both former premiers living in self exiled the current prime minister who has been in charge since leading a coup in 2014 is running again with a new political party. and the military is backing his deputy. the opposition wants the military out, accusing it of failing to stem corruption and mismanagement during the pandemic. democratic values have also been casualties and the young want more freedom of speech. the type politics is divisive. the nation has seen more coup d'etat's than other countries.

heidi: first when it comes to implications for emerging markets, it is not just of thailand elections. we are also seeing tokyo headed to the polls. -- turkey headed to the polls. a lot of changes going into this vote. we are also hearing that one of the presidential contenders have withdrawn just days before. quitting the main opposition to form his own party. no really withdrawing and narrowing that field of rivals as well. going into that vote, we are seeing the cost of insuring the bonds against default dropping the most in six months. also quite a bit of enthusiasm when it comes to banking stocks extending that rally ahead of this weekend's pivotal elections. shery: this is really pivotal

not only for emerging markets, but for the broader world. diplomatic relations between the west, russia, china, we have seen turkey really at play it that diplomatic pivot state role. its significance depending on the state of their alliances and partnerships. really the state of the economy is in focus as you mentioned, we have seen that rally in markets we know that the president has really pursued a very unorthodox policy when it comes to the economy in turkey. inflation is rampant right now, but still, the borrowing costs are low. this is what economists are watching. the thing is that even if we get elections going one way or another, bloomberg thinks that no matter how elections play out , the policy will have to become more orthodox regardless. although we have had stealth currency market interventions, turkeys inflation problem will

be around for a while. so, monetary policy will likely have to tighten again in 2023. we will be watching those very crucial elections this weekend in turkey and thailand, so really busy news cycle. plenty more to come, this is bloomberg. ♪

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heidi: g7 policy makers have meant to review guidelines on corporate governance, including a renewed focus on gender diversity. the host nation, japan, is the only g7 country that failed to make the top 100 in the world economic worms globe earl -- global gender gap report. they are taking some steps to narrow the gap. japanese firms will be required to disclose gender pay gap information for a start. let's bring in haruna usui from alliancebernstein japan. japan has typically fallen behind when it comes to esg. do some of these initiatives go anywhere near to being enough when it comes to what international investors are looking for? haruna: thank you for having me.

that is very much right that japan incorporates esg has been somewhat ok with e. we have a couple of leaders in japanese companies. if you look at social or governance areas, those are somehow quite behind as japanese corporate's do let go of the gender diversity on the social front as well as on g, the lack of efficient oversight or the very inefficient management such as cross chair holdings. we are pretty excited to see that policies uphold in japan is pushing to improve these behind s and g in japan so that the japan's companies are finally ahead to improve these areas. heidi: women did not really

achieve the goal of returning to the workforce. when you look at the upper echelons, that is where the pay gap as well as representation comes into play. do you see enough progress being made? haruna: so far, the progress has been quite limited. as you can see, japan's listed companies have only 10% of female top executives total. also the tokyo prime listed company, 1/5 of them has all male executives. that is still the fact. now that we are seeing the sign of changes, first of all, the sentiment for esg is very different between the u.s. and japan. for japan, along with these policies, population is shrinking and we are really in the arch of acquiring good

talent recruiting and retaining talent by introducing better diversity and inclusion initiatives, mostly gender diversity. that is becoming quite critical. also, we are in the end of almost two decades of the very low inflation rate. also the subzero interest rate. in short, the capital is no longer free. so, companies have to have action to improve the smg practices and have efficient management, and have better practices, especially in social and governance areas to justify increasing cost of capital along with the arch for growth coming out very low growth environment into more positive growth environment in japan. shery: for active investors, how

does this cap existing in japan and the catch up in order to narrow this gap provide an opportunity? haruna: exactly. we see this gap as an opportunity for return. when we do engage with companies that we want to invest in, we make sure that what we see as the materiality, what kind of esg issues do affect the corporate earnings or cash flow? how they can maximize the corporate volume by better managing those esg issues. for japanese companies, social issues or governance issues usually comes on the very top of that list. we see some companies already taking some concrete actions such as introducing external or female board members are having better labor-management

practices. heidi: we know that usually when it comes to esg, large corporations, they do get more public scrutiny, and do better. how are men at small size businesses faring here? haruna: we are also seeing some small size companies reacting quite quickly and being responsible to our engagement. when those companies do react as a result of our engagement, we do take it quite positive. they tend to listen to what we say and also, they tend to understand why investors are concerned based on materiality. not only for being good for society, but also critical for their growth, and maximize the corporate value by introducing better in social and governance areas.

we also sayd or small size companies are reacting well as well. shery: haruna usui thank you haruna usui,. plenty more to come. this is bloomberg. ♪

shery: a quick check of the latest business flash headlines. three companies controlled by a billionaire are considering a fundraising that may drop to $5 billion. exchange filings show that the board of adani will meet on saturday. this will be a pivotal test of investor confidence for the conglomerate less than four months after a short seller attack. saudi aramco is said to be postponing a planned ipo of its energy trading business due to market conditions the state-controlled oil company has significantly slow down work and the listing may be delayed. a buyback of 27% of shares trading on the open market. this potentially boosts the stock price as he feuds with hindenburg. they have hit out again, a famed corporate failed to disclose

enough in response to questions raised. shery: we will be watching softbank when trading kicks off in japan after the company lost money in its vision fund investment unit again. men jong lee joins us from tokyo. we have been talking about how southbank might do better, so what happened? >> despite this rebound, unfortunately they had to mark down some of its privately held holdings. they did end up any bit of losses. narrow in terms of its previous quarters, but they have losses because of the fourth quarter ended in losses, they ended up with the year with another fresh record loss of ¥4.3 trillion, a

significant loss. it is not hugely unexpected. we will see how investors react when it opens later this morning. heidi: there was what the cfo said, this idea that the worst of it this is behind them, what is to,? did we get an update and potentially when we could hear next? min jeong: you are right. cfo did slightly hint about the potential that they could embrace a little bit of a more offensive mode and start investing again. but it all really depends on how the market changes going or word and your right arm is very important. the results weren't very promising for the fourth quarter.

and they didn't provide too much detail about the planned ipo. so there is still a lot of questions surrounding how the ipo will pan out in the future. shery: thank you for joining us from tokyo. one to watch only get into the start of trading into go, southbank. we have the market opens next as we had in to this final friday session of the week, still in the thick of earnings season, of force. set for a pretty mixed open. this is bloomberg. ♪ or filing returns. avalarahhh ahhh mmmm, your morning coffee hot delicious comforting. but by the third or fourth cup,

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shery: we are coming down to asia's major market opens.

u.s. jobs data. producer prices rising less than expected. haven asset plays in asia as well. haidi: we had a strong day when it comes to the dollar. debt ceiling negotiations not going anywhere. the meeting between president biden and the u.s. house speaker being pushed back to next week. when it comes to sentiment, a lot of uncertainty going into another week. annabelle: absolutely. sentiment is fragile as we enter the last day of trading. we have the opens of japan, korea, and australia upon us. it was the move back into safe havens that marked the price session in the u.s.. signals of a call in the job market. perhaps the fed's tightening program is finally taking effect. the 10 year yield looking flat today. we are watching those moves back

into safe havens, including the japanese yen. it could weigh on the japanese stocks but we see the nikkei 225 coming online higher. we are focusing on softbank in particular. it hasn't started trading just yet but we did see the company losing money in its vision fund yet again. it was a time where we saw a big recovery in tech stocks generally. the nasdaq rallying in the last quarter. another company will will -- we will be focusing on his tokyo electron. that stock has come online a little bit to the downside here after a projected earnings well short of analyst estimates. it's another negative signal coming through for the global semiconductor industry. an index that's very correlated with the health of chipmakers is korea. we are seeing it coming online a little bit weaker.

the caused act doing better. nasdaq futures trading fairly flat. pushing a little higher in the u.s. session. one factor to watch as well is the stronger dollar. the weaker korean won, the health of the chinese economy. credit, new loans data falling in april. just another signal to us that the recovery in china is looking very uneven. consumer demand for services holding up. factory activity is what we are watching particularly. that's playing out across asset classes. oils, base metals to watch. look at the commodity spot index which closed at one point. we are seeing it sitting around 1.5 year low. ozzie stocks as well coming online to the downside. haidi: just going through some

of your constructive investment themes, they are interesting. emerging-market debt. you are still overweight u.s. treasuries despite the ongoing debt ceiling uncertainty. also to buy yen. i'm wondering, on the whole, what is your risk construct for a portfolio? homin: long and petitions and constructive positions on local emerging-market currencies. and some of the chinese equity exposures and slight overweight in u.s. treasuries. they are all supported by our condition -- conviction that the dollar is at the end of its rally. it's quite possible, before the resolution of the debt ceiling crisis, the currency markets looking at the medium-term

valuation for the currency. it is still very expensive. we believe that we've reached the peak rate in the u.s.. if you combine these develop and's together, you will likely see quite a supportive environment for anti-dollar trade so to speak in the have -- in the second half of the year. these are the traits that are consistent with that. also, in terms of the u.s. economic strength, we continue to receive data that suggests that there will be slowdowns down the road. that is supportive for u.s. treasury overweight. this is the position that we have. shery: there's been enthusiasm when it comes to emerging markets. turkey's election also in focus as well. when it comes to an economy like thailand, do you prefer that market as a way to get exposure to the chinese recovery? homin: for sure.

it's one of the few economies this year that will experience a significant acceleration from last year, due to rebound in tourism. china will definitely play an important part in that. let's see how the election goes and what the reception will be among voters after the election. our assumption for the election outcome is that it's quite unlikely that there will be a change in government. but it's more important that you have stability after the election. if that's the case, we still argue that the country is a very nice way to play a rebound in consumption in china. stability after the election will be key. shery: we have turkey elections this weekend as well. how much do you weigh political risk into your calculations? in the u.s., we also have the debt ceiling socket continuing. homin: when it comes to turkey,

it doesn't constitute a huge portion of key benchmarks. so from our perspective, it's really not for an ordinary foreign investor. it's difficult to position on the country before the election is wrapped up. of course, you will get results of the first round of the presidential election. now it's very difficult to call the result. if the opposition wins, it's possible that markets rally a little bit. given the uncertainties surrounding the election outcome , the relative importance of the kind and -- country financially, we think it's better to it for the results. that's our position on the country. we know that janet yellen has

put forward a deadline of june. we suspect that it is a slightly conservative assumption. still serving the role as pressuring politicians in washington to come to an agreement. we believe that just like the episodes before, they will come to some sort of agreement in the last minute. that will continue to be a source of volatility for the markets. shery: yet markets continue to price perhaps rate cuts coming this year. perhaps because of this volatility. the numbers today, whether it's jobless claims or producer prices, seem to show that we could be getting some signals of the economy cooling down. our markets again getting have ahead of themselves -- getting ahead of themselves? homin: the initial jobless claims are trending the right way from the fed's perspective of fighting inflation. the job market shows the signal

for further weakness down the road. so we would say that markets aren't wrong to think that we've seen the end of the rate height cycle in the u.s.. the pricing still seems quite aggressive in our view. it's a reason why the environment will be quite choppy. may and june isn't a good season for risky assets in a normal year. in our view, it will be choppy. because of this aggressive pricing, from our perspective it seems inappropriate. of course, it is 612 -- six to 12 months from now. we think the dominant chatter in the market will be the prospect rate cuts in the u.s.. we are not there yet. we will reach that eventually. shery: always good catching up

with you. thank you. earnings season in japan and markets moving on the results. what are you seeing? annabelle: thanks. we are underway in the japanese earnings season. softbank reported a quarterly and fully year result that missed the average analyst estimate. the vision fund was down $2 billion in the three months ending in march. softbank has lost money for years but interests in the reporting, it was a time when we saw a lot of tech stocks recovering. softbank has marched down the value of its private companies more than increases in its public holdings. tokyo electron did come online to the downside and has since recovered. its full-year operating income forecast missed estimates so not a great signal for the global chipmaking sector. decatur is another stock we are watching here. that company as well. profit forecast missing analyst

estimates. the company does plan to hike it's to command -- dividends in 2024. analysts saying this was largely expected by the market. nissan as well posting in operating profit forecast that meet the average analyst estimates. a little bit cautious that this plan could look too optimistic. let's change now. another section we are focusing in on is the crypto linked names in asia. given those moves in bitcoin, still continuing to slide below that mark. we saw crypto-linked stocks falling in the u.s. session on thursday. a little bit mixed as we get underway into the session here for japan. another sector as well and a big focus today in the session will be how investors react to china's credit and new loan data that fell in april. another signal to us that china's recovery is looking increasingly uneven. that has big ramifications for

base metals and other commodities. we are seeing those losing ground so far. haidi: let's get you to vonnie quinn now with the first word headlines. vonnie: joe biden's debt ceiling meeting with kevin mccarthy and other congressional leaders has been pushed from friday to next week. according to officials, it's a signal that the talks are making progress and the push to strike a deal to avert an historic breach of the debt ceiling. he will meet with congressional leaders early next week. the largest banks face billions of dollars in extra fees to replenish the u.s. governments deposit insurance fund. the assessment stems from the regulator decision to ensure all the prophets the banks had. the move cost its deposit insurance fund $15.8 billion. the bank of england has raised its benchmark lending rate to the highest since 2008 and says

more increases may be needed if inflation persists. the central bank lifted its key rate to 4.5%. officials delivered the biggest upgrade to growth projections since 1997, dialing back on their previous forecast for recession. >> we are approaching a point when we should be able to rest, in terms of the level of rates. we haven't seen the evidence yet to get rid of a stronger sense of the read of this. that's why am clear that we have to be evidence driven. vonnie: thailand's consumer confidence has riven to the highest level in more than three years. that's a steady increase for 11 consecutive months. the university says pre-election spending and foreign tourist arrivals are boosting spending. consumers spent up to 880 $6 million in the run-up to the election. global news, powered by 2700 journalists and analysts in 120 countries. this is bloomberg. i'm vonnie quinn. shery: still ahead, a return to

equity markets to potentially raise billions of dollars in a major test of investor confidence. first, we are live in japan as finance ministers and central bankers gather amid the prospect of a global recession. this is bloomberg. ♪ go. go green. go wind turbines. go gorgeous reliable grid.

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haidi: global finance ministers gather in japan. the u.s. treasury secretary

hopes to discuss a new set of possible restrictions on outbound investments to china. our chief north asia correspondent stephen engle joins us now. what did we hear from janet yellen on this? stephen: we heard a number of different things. we will hear more today when my colleague will sit down for an excuse live -- exclusive interview. yesterday, she had on a number of issues including the u.s. that ceiling, calling it catastrophic for the united states to default on its debt. also took an opportunity to weigh in on geopolitical issues. namely, the ovation by the russians on sanctions and closing those loopholes in getting consensus from g7 members as well as the invited guests from the global south, as well as china. a main issue as we transition next into the leader summit in

hiroshima is what kind of pressure the g7 will place on china. how will the phrase knology be coalesced as a single message between the europeans, the united states, the canadians, as well as the japanese on pressuring china because of what have some call -- some have called alleged economic coercion from the chinese. that was front and center. we are hearing from sources that the united states is upping the pressure. at the same time, behind the scenes, we are getting signals that the united states is using more european terminology. de-risking the relationship with china rather than decoupling. there are signs that the europeans are coming on board. a lot of this is behind of the scenes -- behind-the-scenes. olaf scholz this week accused china of increasingly acting as a rival and a competitor. he's been using the terminology

smart de-risking. also last week, we heard that the italians perhaps have signal to the united states that by the end of the year, they could possibly opt out from the belt and road initiative. later this morning, we will be speaking to the european commissioner for economic and financial affairs. we will ask him about that. on the issues with china as we are awaiting a possible executive order from the biden restrict technology investment by allied -- american firms in ai, chips, computing, this is what she had to say about the scope of those new restrictions. >> this seared be national security focused. it's not focused on undermining china's economic competitiveness or ability to advance economically. stephen: tune in later this

afternoon japan time where we will have an exclusive interview with janet yellen the treasury secretary. shery: you already had a conversation with matisse corman. he addressed some of those big global issues. what were your key takeaways? stephen: we've been hearing the terminology from janet yellen as well as the energy that for seem like a lot had with jamie dimon. any default on the u.s. debt by the united states, breaching of that debt ceiling would be catastrophic. i put that question to matias corman, the os cd secretary-general. this is what he had to say about the global -- implications of the move. >> there are so many issues and risks and uncertainties in the economy right now. our focus collectively should be on removing issues and solving problems. there's no need for a self-inflicted problem that comes on top of the other issues

that we are already facing in the global economy right now. >> what needs to be done further from policy to contain any contagion or other risks to the banking system following the collapse of svb and other banks. >> firstly, we believe that the global financial system remind -- remains resilient. it's much better regulated and supervised than what it was in the lead up to the global financial crisis. what we've seen is specific management. there are some supervisory implications and issues for regulators to reflect on. they immediate response was swift and effective. it was correlated and helped avoid further contagion. we now have the space to very carefully consider what policy implications there would be. clearly, there is an impact in the market and perceptions in the market. that is something that we will

have to address in the months ahead. >> what is your view in info -- on inflation? there seems to be diversions path -- divergent paths? we had the president talk to us saying, he's not ruling out a september hike from the ecb. >> the short answer is, inflation is too high. it's not coming down by enough fast enough. the united states is a bit further advanced in terms of the monetary tightening cycle than perhaps is the case in europe. what i would expect is that in the united states, there will be some further cautious monetary policy tightening to get the inflation right back to target of 2%. from our observations, we suspect that there will be a need for some strong action still in the european context. >> september rate hike? >> i'm not a central bank governor. i would just say that it's very

important to get inflation back to target. i know central bankers in europe and the united states are very focused on that task. >> how high are the global recession risks? >> our projection is for the global economy to continue to grow. we are not projecting a recession. there is significant downside risk and we need to continue to resolve issues. stephen: it is tough obviously to talk about the prospects for a global recession coming out of these tightening cycles. the central bank, without talking about china's contribution. yesterday, the ministry of foreign affairs says beijing is dismissing anything that's coming out of the g7. the spokesman says the g7 is a small click that puts the u.s. first. essentially saying that this grouping here at the finance ministers -- ministers and leader summit that will come in in hiroshima next week, essentially just serves the united states and a small few other nations.

again, china is not represented here at the g7 but is a big contributor to global growth. the second biggest economy in the world. back to you guys. shery: stephen engle drowning us from japan. another reminder not to miss that exclusive conversation with treasury secretary yellen for the g7 summit. that conversation, 5:30 p.m. in sydney. this is bloomberg. ♪ you know doug, ever since switching to workday you've been a real rock star. rock star? what do you know about rock stars? billy idol? i mean where's the skin-tight leather? my shoes are leather. where's the unnecessary zippers? that thing! billy, rock star is just how doug feels when he uses workday. thanks, rory. i'll show you rock star! be a finance and hr rock star. workday. for a changing world. billy idol just stole your golf cart!

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shery: softbank shares under pressure, falling the most since mid-march for a second consecutive day. this is after posting results showing the visit fund lost money again. bloomberg tech reporter joins us

for more on this. we thought softbank was going to get some support from the tech rebound that we've seen. what happened? >> right. we were hoping that there could be a little bit of a profit and some improvement. there were quite a bit of markdowns in the private sector. so the vision fund remained in losses. the year was a record loss of more than ¥4 trillion. it's not totally expected. but investors are obviously very disappointed by the results. maybe because of the lack of any buyback announcements. we are seeing quite a steep fall in share prices right now. haidi: can we hear more about the arm ipo and where they could find new growth? we know they are excited about the foray into ai. >> -- min jeong: right.

the ipo is definitely something everybody including investors wanted to hear more about. he was very careful in saying that, because the ipo preparation is well into progress, you can't say much about it. the arm results, which provide the biggest hint about what could happen, provided mixed results. so investors are probably not very happy about that as well. but that is one topic that will continue to be under big focus going forward. shery: joining us from tokyo. take a look at how major indices are trading this friday. we are seeing a little bit of cautious risk appetite at the moment. a lot of uncertainty. we are still getting through corporate earnings season. also, the u.s. debt ceiling was

still unresolved with the reports that we are getting that push back into next week of that planned meeting between president biden and u.s. house speaker matt -- kevin mccarthy. pretty solid gains when it comes to nikkei 225, up by 4/10 of 1%. we are talking about softbank as one of the laggards. pretty mixed across the rest of the region. korean stocks down by 7/10 of 1%. a little bit of muted downside trading in australia as well. kiwi stocks putting on a quarter of a percent. o(jennifer)t. mthe reason why golo customers have such long term success is because we focus on real foods in the right balance so you get the results you want. when i tell people how easy it was for me to lose weight on golo, they don't believe me. they don't believe i can eat real food and lose this much weight. the release supplement makes losing weight easy. release sets you up for successful weight loss because it supports your blood sugar levels between meals so you aren't hungry or fatigued.

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annabelle: this is daybreak asia. 30 minutes into the session for sydney, seoul, and tokyo. we are looking fairly range

bound. the kospi is one of the outliers to the downside. the nikkei pushing higher. further earnings continuing to roll through including from the likes of softbank which has come online. looking weaker this morning after further losses in his vision fund, down $2 billion in the three months ending march 31. a lot of tech stocks picked up sting. but across other asset classes, we are seeing the dollar here eyeing its best gain in around two months. a lot of different factors weighing on this. you have concerns about a slowing u.s. economy that are coming through. the debt ceiling effort is ongoing. concerns around the health of regional banks in the u.s.. this is all against demand for haven assets. we are seeing currencies looking weaker. bond yields continuing to follow little bit.

jobless claims higher in the u.s.. following the most since 2021. the commodities complex. nearly 2.8%. broadly weaker in the likes of aluminum and other asset classes. if you change now, this is as we see base metals and the bloomberg commodities bought index. dropping down to its lowest level in around 18 months. partly down to what we are seeing in terms of global trade. demand is coming from china. we have seen shipments declining year on year. china grappling with weakening external demand. a lot of concerns around the health of its economy that just showed up as well in its latest credit. both of those different factors really falling short of analyst estimates. factory activity in china is facing issues.

something we will be tracking with the open of mainland markets in the next hour. shery: always that overlay -- haidi: always that overlay. we saw top officials from both countries meeting in vienna, setting the stage for a possible call between president biden and presidency. the meeting is substantiative and constructive. jake sullivan held two days of talks. the white house says the issues they discussed included tensions over russia and taiwan. jp morgan ceo is weighing in on the tensions between the u.s. and china, saying there's a need to keep western alliances together when confronting geopolitical issues. he spoke with bloomberg in this exclusive interview in paris. >> this is a serious subject. i'm a patriot first. put that aside. what the government should do is

have conversations. they will be tough but they should be thoughtful. certain things our national security. certain things are not. we have a lot of common interests. we have differences. we are capitalists. they are not. we can sort that out. we need to keep the western alliances together. not just a wound war and ukraine. we can't take trade off the table every time we talk to europe or asia. i was around the world. i want to keep the world safe for democracy. i want open markets, particularly europe. a lot of great things in the ira act. there are things that i don't like, like too much social engineering. it pits off all our allies. >> if china starts doing more

nose on -- noise on finance, does that her chinese growth? >> probably. you've already seen, it's not trade. you feed -- you've seen investment going both ways. that's ok in the short run. in the long run we should say, the government should decide. it shouldn't be business companies deciding. when congress criticizes business, there may be truth to that. they have to decide. what's ok? what do they want? that's around trade, investment, sharing ip. >> i give you a million pounds. where do you invest? >> jp morgan. i wouldn't by sovereign debt anywhere. >> why? >> there's too much. fiscal stimulus took place and is still through the system. these arcs ordinary numbers. not just in the u.s. but in europe and other parts of the world.

i mean it short and area. i think there's a chance you have in more -- you have more inflation than people think. they don't control longer rates. you can see longer rates taking up because of higher inflation. even if there's a mild recession, they continue to take up. many of us experience that in the 70's. i would be worried about that. rates are low. >> where are you putting that million? >> central banks. shery: jamie dimon speaking exclusively to francine lacqua. let's get to vonnie quinn with the first word headlines. vonnie: thank you. pakistan's supreme court has ruled the arrest of the former prime minister was a legal and has ordered his release from custody. the turn in the ongoing political saga comes after he was arrested in an investigation, sparking violent protests. the court ordered he stay at a secure location before he appears at the islamabad high court for another case.

turkey's main opposition alliances accusing russians of meddling in the upcoming presidential election. presidential candidates sent a tweet that russians were behind what he called conspiracies and deepfake content. another opposition counted it has withdrawn from the race after -- after the office into the of a sex tape. there's been no real progress made on aussie on's plan. speaking at the summit in indonesia, he urge the regional block to unite to resolve the crisis. myanmar has lingering problems as violence continues in the country. the block has a policy of noninterference in its members affairs and remains divided on the issue. global news, powered by 2700 journalists and analysts in 120 countries. this is bloomberg. i'm vonnie quinn. shery: abu dhabi-based ihc says it doesn't plan to take part in

any potential share sales if the adani group decides to tap equity markets. ihc has invested almost $2 billion in companies owned by a billionaire. for more, let's go to philip at the checkout. how important is it for these companies to get this funding? what do we know so far about their efforts? filipe: good morning. it's extremely important for them to raise these funds right now. it would give a very strong signal to the market if there's good exception off these deals. we don't know exactly how they are going to raise that money. we don't know if they are going to do it mostly through the sale of new shares or if they are going also to sell bonds. what our colleagues in dubai has reported so far is that they are seeking between $3 billion in five u.s..

this is a huge amount of money. it's way more than they were seeking to raise. adani enterprises is the flagship company for the group. it will be interesting to see how demand is and what kind of structure they find to actually come up with this money. haidi: who are the potential buyers of the shares or securities? do we know anymore? filipe: that's a very important point that people are asking right now. people in the market. everyone has been seeking to understand better. a few names that came to our attention as we spoke to people yesterday is ihc. it's one of the big names that have supported adani in the past and invested close to 2 billion u.s. dollars.

they don't intend to join any potential share sales at this point. this could change as things move on. another name that came to our attention was gq gp partners. the u.s. investment firm that's been equivalent to $2 billion in shares. so these are names that could definitely join any potential fundraising. they are interested that the group is healthy enough to keep on and keep going with their operations. shery: it's a very difficult session ration for adani. even if you want to tap a broader group of investors, that can backfire. what's next for them? what do they do? filipe: i think it's important for us to pay a lot of attention on how the structure of this fundraising will feel, if this

will be d -- done within a close group of investors which is possible or if they would come to the market and do a bigger follow-on offering as they were planning in january. the entire plan was scrapped after the end -- hindenburg report was published. we have to pay attention very closely to the board meetings that are happening tomorrow. three companies including adani enterprises. the board of those companies meet and will have to come up with some sort of details off this entire fundraising plan. we don't know when it's going to happen once -- how much money they are going to raise. those are the big questions. hopefully by saturday evening, we should have some answers. shery: the latest on adani. we have much more to come here on daybreak: asia. this is bloomberg. ♪

haidi: we are not seeing a lot of movement because consumer discretionary stocks are up. health care up. that then you have the likes of materials and energy casting downside on the equity markets.

when it comes to japan, we are watching the results of some of those corporations like nissan jumping with that profit forecast that beat estimates. investors respond to their buyback plans. softbank is falling today because of more investment losses. haidi: of course, we've been talking about two key emerging-market elections as we head into this we land. thailand is the one to watch. heading to the polls with opposition candidates looking to unseat a military regime ruling for nearly a decade. let's cross over to our reporter who joins us out of bangkok. we know that it's a pretty narrow race. what's the mood on the ground >> we are entering the last stretch of the final campaign and of the election and political parties are going all-out, holding

rallies basically every day in bangkok and outside in other provinces. as we are speaking today, it's the last day for political campaigning that's allowed under electoral rules. we can expect parties to go out with a bang. if the early voting -- sorry. haidi: go ahead. patpicha: if the early voting last weekend's anything to go by, we might be able to expect a high turnout. last weekend, more than 90% of 2 million people who have registered to vote in advance came out to vote. shery: who are the candidates to watch? patpicha: the election this time is largely between the conservative camp and pro-democracy camp. the conservatives are led by the incumbent prime minister, former chief who toppled a civilian

government in 2014. he came back as prime minister in the 2019 election. on the opposition side, led by the former time menace -- type prime minister's daughter who has been rising steadily in the popularity polls. she's now leaving the party and trying to bring it back into power after the government was toppled into thousand 14. there is another opposition party leader that's worth watching out for. he's the leader of the move forward party. that's a really popular among the young voters. haidi: what are the key issues? are the parties far apart on them? patpicha: the key issues dominating this election involve the economy.

he has ruled thailand for nearly nine years now. they've been accusing him of mismanaging the economy and driving up the cost of living. being unable to contain high inflation. the key issues most parties have had with the policies to tackle the cost of living, which are now very high because of inflation that had a 14 year high two years ago. they've been proposing popular policies that promised to give -- resuscitate the economy. haidi: joining us live on those thai elections coming up this weekend. let's delve into what to expect and bring in the associate

professor. great to have you with us. we've been watching how the election might unfold very closely. how high are the stakes after nearly a decade of a government led or backed by a royalist military? punchada: good morning everyone. this is the very important elections. we are expecting a high turnout. a lot of people expect chains, especially the young generations. it's very difficult to say who will win this election compared to the last election. we notice that the military came into power. in this election, it's difficult.

we know that there is a lot of new faces who are running in this election. shery: it seems both sides have focused on bread-and-butter issues. what is important to the public right now? what do they want to see? punchada: i think they want to see the change of the government. the economic slowdown in the last eight years, a lot of people got money in their hands. that's why most of the major political parties proposed a lot of popular policies and a lot of how to make money back to the people into the country. it's important. haidi: when you take a look at the two realms that we see competing, the dynastic policies of thailand versus the military

guard, is there one that garners more popular support? punchada: well this time, the younger generation seems to have a lot more support. got a higher score on the pole. another political party is moving forward using the forward party. it seems to be the old generation supporting those kinds of parties. the new party formed the ruling political party this time. i think this election, you can see the divide between the young and old generations.

they are leaning towards the conservative side. haidi: what sort of coalition potential do you see? punchada: you mean the coalition government after the election? haidi: yeah. what sort of possibilities do you see and the likelihood? punchada: there are about three options that i can see at this time. first, the cooperation between the political party from the democratic side. these options seem to be difficult. most of our party proposed the policy to revive the particle. i don't think any political party wants to do that. the second option is the coalition between the liberal parties, the democratic party, and also the conservative party.

basically, cooperations between that party and also --. the last option which is similar to the 2019 election which was the cooperation among the democratic party. in democratic terms, in thailand, they cannot form the coalition government. this time, some political parties already stay. who can form the coalition government could be the government. shery: great to have you with us. be sure to tune into bloomberg radio for the latest. you can hear more from the days

big newsmakers and get analysis from the daybreak team. we are broadcasting live from our studio in hong kong. more ahead. this is bloomberg. ♪

♪ haidi: a quick check of the

latest business flash headlines. the wall street journal reports that nbc universal's head of advertising is in talks to become twitter new ceo. elon musk tweeted he's in transition in his role at the firm to executive chair and cto where he will oversee products, software, and septum operations. musk says the new ceo it started to start in six weeks. carl aiken is holding a buyback, equaling almost 27% of its shares trading on the open market. this potentially boosts the talks -- stock price as he feuds with hindenburg research. the short seller has had again. the famed corporate rate failed to do close -- disclose enough. haidi: let's take a look at the

stocks we are watching. the msci has announced 86 securities will be added and 39 remove from its all country world index. we are looking at jd health. they are among the potential candidates for inclusion when it comes to the hang seng index as well. that's just about it for daybreak asia. coverage continues as we look ahead to the start of trading in hong kong, shanghai, and shenzhen. we continue on a mixed path this friday session. this is bloomberg. ♪

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david: happy friday