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australia. annabelle: we are counting down to asia's major market opens. shery: the top stories this hour, treasury secretary janet yellen reiterates that the u.s. could run out of cash as soon as you first. she warns the country is already paying a price for his failure to raise the debt limit. >> investors -- u.s. stocks stock. haidi: two fed officials in favor of pausing rate hikes, the other says a battle to subdue inflation is not over. the asian session muted after we saw the s&p 500 falling after rising in a tight range in today's session. concerns about where the debt ceiling negotiations will go tuesday between president biden

and congressional leaders. not to mention, we have data showing more economic weakness and that really pressured stock markets. new york manufacturing falling by the most since 2020. despite also the dovish tone in fed speak we got today, we had treasury yields rallying with a 10 year yield above 350. we are watching what is going to happen with the fed rate pass, especially come the dude meeting. meantime, oil prices extending gains in the asian section, above $71 a barrel. we heard from sources that u.s. government officials are willing to replenish strategic reserves and would be buying 3 million barrels of crude to add to the strategic reserves. haidi: janet yellen says the u.s. is already paying the price for its failure to raise the

debt limit as talks between the white house and lawmakers continue. let's get more from jodi schneider who joins us out of washington. even though janet yellen sticking with june 1 as the earliest date on the debt ceiling, what kind of a fresh warning to be here today? >> in that letter that janet yellen wrote to kevin mccarthy kevin she said is this still june 1. we could run out of cash, the ability to maneuver with extraordinary measures we have been using since january. but also, she said a few other things she set a default could come weeks or days after that june 1 deadline, which was a bit of a tweak. something we had not heard earlier. she also said we are already feeling the effects. this was a stern warning, saying if -- do not play around with this. it is getting close and it could be catastrophic.

she was doubling down on all of this information. there had been some thinking that if we got another letter there may be a new date, but there wasn't. just more warnings. shery: what key metrics to g .2 to emphasize how financial markets have already been stressed? >> her wording was measured. she said they have already seen treasuries borrowing costs increase substantially for securities maturing in early june and went on to say if congress fails to increase the debt limit it would cause severe hardship to american families. and it would also hurt the u.s. position in the global economy. also, national security interests. so, it was a pretty severe warning. treasury has said it had just $88 billion of extraordinary measures room left as of last

week. so, this is a warning from the treasury department that we should move ahead, try to get some kind of deal soon. and this comes on the eve of a meeting scheduled at the white house between president biden and speaker mccarthy before president biden is scheduled to go to the g7 meetings in hiroshima, japan this week. >> we are hearing fairly different language to being used from president biden and joe mccarthy. how do we account for this? >> it does seem like games men. president biden over the weekend come at the beach, was saying, i think we might be able to get there. he seemed somewhat optimistic, if at least expressing signs of optimism. kevin mccarthy said today they are still far apart. that they are not there yet.

of course, there are meetings tomorrow. we know staff has been meeting since late last week, there was a meeting scheduled for friday at the white house that did not occur. it postponed, saying they were making progress. it is unclear. at this point, it does seem kevin mccarthy has less to lose and may be more to gain by saying they are further apart. he is trying to get president biden to agree to more. president biden had said previously he would not raise that she would not allow the debt ceiling, but not sign something that would not be a clean bill, that would have measures attached to raise the debt ceiling. but as a comes closer, it seems he is more willing to negotiate. one would think kevin mccarthy wants more negotiating room. haidi: jodi schneider joining us from washington. shery: all of this raises the risks of epic not -- not surprising, top fed officials remain cautious while deciding on the need to hike rates again or pause for now.

our global economics and policy editor kathleen hays here. three fed back to president spoke today. the message seemed mixed. >> absolutely. whatever they are thinking, they are not 100% sure. that is understandable. inflation is high. there's more economic reports to come here there's a lot going on , let alone debt ceiling uncertainty. raphael bostic, president of the fed atlanta, today he was pushed by michael mckee and he said if he had to vote today, he would probably just sit back and let things go. but he was definite, no rate hikes. he sees me, no rate cuts. let's get that right, until 2024. >> no. in today's environment where there is so much in certainty, i do not think we can rule out anything. if i had to have a vote right

now, i would vote to hold. as you noted, we've got two more inflation readings and a jobs number, it jobs report coming out. there's a lot more information we are going to have. >> what he would not rule out is the rate cuts. although he does think it is likely. inflation is one of the things that has improved a little bit. it is still above topic. raphael bostic notes the cpi coming in on the core at 4.9% year-over-year is still more than double the target of 2%. and of course you've got the headlight at 5.5%. you can see come the direction is good where it is going. neel kashkari is president of the federal reserve bank of minneapolis for he spoke -- minneapolis. he made it clear, and he is a voter right now, that he is also looking at a closely, but leaning toward another hike. >> we at the federal reserve

probably have more work to do on our end to try to bring inflation back down. most importantly, we should not be fooled by a few months of positive data. we are still in excess of our 2% inflation target and we need to finish the job. >> austan goolsbee, one of the newer fed bank presidents in chicago, speaking on cnbc, he said it was a close call. he almost voted to dissent against the 25 basis point rate hike. for now, he thinks the fed has to watch. let's probably pause, he has not made up his mind, but he says they have to be extra mindful of previous hikes. think about it, 500 basis points of rate hikes of the last year. tight credit conditions, concern about regional banks. he thinks they probably should wait and see. but, the tone we get here is that no matter how they are leaning, the matter how often

gold to be leaned -- no matter what, we have neel kashkari and bostick watching the numbers. they are going to see what happens. it is not a big difference. see what happens, do another 25 hike, then maybe pause. but, definitely a big deal for the markets. haidi: kathleen hays. let's look at how markets are contending with all of this. did you see the range? not when it comes to u.s. stocks. annabelle: six weeks on the s&p 500 not breaking out of the 1% range, but the fed in focus. pboc, first quarter monetary policy report, this one very closely tracked because there is so much debate among economists and investors where further support is needed to boost china's economy. we have been tracking how uneven the pace has been. pboc is planning to keep its monetary policy.

what it calls an appropriate level. i exactly what this means, they are focusing on inflation. they are saying inflation is marbled. they are exciting that the pickup slowly in the second half of 2023. really stressing this report, this is not a picture here, even though not a cyclical downtrend, pbo says we are not in deflation. what else i focused on was the gap between economic expansion, inflation and brought monetary growth. they are saying that is the result of the delayed hiccup in consumption. goldman sachs among those saying we could get a rrr cut sometimes in the coming months. perhaps this is something to setting china of her a more positive we see china futures at more than 1.3%. even though the dashes standing out, australia flat in new zealand stock debt to the downside.

currencies are range bound. a lot of wait and see with the uncertainty. more in the u.s. shery: let's go to vonnie quinn. vonnie: thailand's two parties have agreed to join in a coalition that we give them a clear majority in the lower house. the move forward party claimed a mandate to lead after topping the polls. the party chief says he extended invitations to five parties to form the next government. move forward leading until the seats and popular vote he won backing from the party that finished second. turkiye will hold a runoff election with president erdogan following just short of sick enough those for a second round victory. erdogan one 49.5% of the vote, but his challenger secure just under 45%. the runoff is to be held may 20, the first to be held at -- under the new system and suggests a

more divided electorate in 2018 erdogan won. philippine central bank governor has signaled a potential pause in one of the most aggressive tightening cycles in the region. he says the bsp may leave key rates unchanged thursday officials -- downtrend inflation. cpi slowed for the third straight month in april. ford motor company is planning to cut more than 1300 jobs in china as sales decline in the world's biggest car market. forward wholesales and china fell below half one million units for the first time in a decade as consumers increasing -- increasingly embrace a lecture vehicles. a spokesperson told bloomberg its costs are not competitive and they are working with partners to reduce cost in all areas. . global news powered by more than 2700 journalists and analysts in more than 120 countries. haidi: the european union approves microsoft's deal to buy

blizzard. ubs private wealth management is urging caution on u.s. equities. this is bloomberg. ♪ go. go brain. no, not that one. go this one. go. go optimizing data. go efficiency. go results. emerson's plantweb digital ecosystem is the brain for smarter, safer and more sustainable performance. go plant go. go boldly. emerson.

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> we have seen pricing stress around short-term treasury bills and the like. a little bit of change, and the sovereign credit default swap spreads but if we were going over the date, i think you would see breakdowns all through the market. haidi: let's bring in ubs private wealth management advisor sarah ponczek from boca raton, florida. how are you positioning amidst the uncertainty over these debt ceiling negotiations? does it bother you from a longer-term allocation perspective? >> from a longer-term allocation perspective, we are really not making many changes. it does not bother rose from a long-term perspective either. sure, short-term, there is

likely to get volatility as we get closer to the date that yellen -- janet yellen did reiterate would be june 1. but the market has been pretty cool as a cucumber leading up to this. there has been no stress in the market, rather what the market has been focused on is the federal reserve inflation and interest rates. interest rates have really been a driver of the market year to date and their step -- they are still sitting in the driver's seat. haidi: valuations at the moment, even taking into account stabilization when it comes to earnings, valuations are priced to perfection, assuming the best case scenario for the economy? oracle i would agree. the s&p 500 right now is trading around 18 times forward earnings. >> to pick in the past, when you see valuations, you see one of two conditions. one being extremely robust earnings growth.

sure, earnings did come in ahead expectations and expectations have been higher for the 12 months ahead but by no means to we have robust earnings growth. the other condition is 10 year treasury yields below 2%. we know we do not have that either. interest rates have driven drastically and although rates have come down, market interest rates are nowhere near below 2% on the 10 year. those two conditions, which you typically have in place for valuations of the sort we see now, we do not have either. which makes you think that right now the market is somewhat priced for perfection. shery: do you have sectors where bargains could be had? michael burry of loaded -- unloaded. some of those sectors have taken the brunt of the volatility. >> there are sectors where opportunity could be had. we have been looking to consumer

staples just to make our equity portfolios on a tactical basis a little more defensive heading into the second half of the year. if you look at the dispersion this year, it has been phenomenal. you look at the nicaea index, which is really why the majority of the equity indexes are higher is because of tech, but the nyse index is up more than 40%. the regional banks are down just as much, more than 40%. you see dispersion like this across the market. i am sure you discussed it plenty but we have seen a narrow market. the s&p 500 commit sure we have seen 8% this year, which is great, five months into the year, however only seven companies account for over 80% of those gains. it just goes to show that even though the stock indexes might be higher, there are many industries, many sectors that are not playing along. haidi: it seems to be coming back to your first point about

the debt ceiling negotiations for the broad understanding right now is that the u.s. is most likely not going to default, but until we get there in the next few weeks we will see tons of volatility. how do you take advantage? >> you have got to be ready. if you are someone who has cash on the sideline. right now, we are recommending that you go ahead and lock in those improved bond yields. we have seen volatility on the short end of the curve leading into june. if you have cash on the sidelines, go ahead. ease the opportunity to lock in an approved bond yield and you will be positioned in the future if you see treasuries rally later in the air to participate in that price depreciation. here is somebody who has cash on sidelines and looks at the stock market, do not plow all of your money into the stock market at once. pick and choose your opportunities and take your time to spread out your opportunity

costs. shery: ubs private wealth management financial advisor. you can get a roundup of all of the stories you need to know to get your day going in today's edition of daybreak. you can customize were setting so you only get the news on the industries and assets you care about. this is bloomberg. ♪

♪ shery: markets saw a 69 billion dollar takeover has when eu approval. at odds with you cared u.s. regulations. for more, chris palmeri. a bit of a head scratcher. three different regulators weighing in on this motion. the eu saying this is actually procompetitive.

why does its analysis differ from the opinions of the other two? >> they are all taking a different view of the same deal. eu regulators say there is enough competition in the market, particularly in consuls, they have a remedy they think in cloud gaming. activision agreed to a license to people who want to play their games. pc consuls and on the cloud. so, we see that ruling. the u.k. come a very different. they said the cloud gaming thing, although it is still a nascent business, is going to be important. we see the opportunity for microsoft to control that by not making its games available everywhere. the ftc opinion, which was even broader, they said we just see a lot of trouble for competition and cloud gaming and everywhere. shery: at the end of the day, where does this leave microsoft and activision? >> activision stock took a bump.

they are happy about the eu ruling. they think they have momentum. they are appealing in the u.k. they think they have a chance, although it is a new organization, not a long history of appeals. i think they have a winnable case against the ftc if they decide to continue fighting that there. they could also offer remedies. a lot of people are skeptical about this theory of potentially making this happen. the u.k., not a lot of history and overturning its own rulings for that rulings. the ftc seems to be against big mergers. the chair has said she does not approve of remedies that are only temporary, if a deal does not work on its own rights. a tough hill for activision-microsoft decline. haidi: chris palmeri, senior editor with the latest. here is a quick check of the latest business flash headlines for that headlines.

shery: filings show his hedge funds snapped up shares of first republic before it was bought by j.p. morgan. it also bought shares in pac west, western alliance and new york community bancorp u.s. equities portfolio had a market value of 107 million dollars at the end of the first quarter. japan's biggest banks refraining from share buybacks despite predicting their highest profits in years. they are citing risks from the collapse of u.s. regional banks in the gloomy outlook for precaution. they said they will hold off on any buybacks until there -- results. this contrasts with the result among other japanese companies. investment management calling for a board room shakeup by energy in a letter to the u.s. power producer. the company has meaningfully

underperformed due to a number of operational and strategic missteps. the investor controls economic interests of more than 13% of energy and says it wants new, independent directors. energy says it welcomes all shareholders input. more to come on daybreak: australia. this is bloomberg. ♪ these days, our households depend on the internet more and more. families grow, houses get smarter, and our demands on the internet increase. that's why we just boosted speeds for over 20 million xfinity customers, on us. so you get more of the speed you need for day and night streaming. more speed you need when you're work from homeing.

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♪ >>.

. >> great to have you with us, stephanie kelton. we are seeing mixed messages coming from both sides. how do you see this playing out? >> it seems to be changing rapidly from one moment it sounds like maybe there is progress being made with negotiations and the next report we get from reporters who are covering these talks, somebody will come out and say there is no movement. speaker mccarthy will come out and say we are basically getting nowhere. so, i don't know. it does not look like we are on the cusp of a deal.

shery: for our global audience, which is going to look at the debt ceiling negotiations that happen regularly in the u.s., how much of a sense of urgency is there this time around as different from the past? this is a usual thing in the u.s., as opposed to other countries. >> you are right. other countries around the world don't do this because they don't have a debt ceiling. we are one of two countries in the role that those, the other is denmark in they do not use it the way we use it. we are in a league of our own. there was or concert country we could have put on the list, australia. australia. the debt ceiling limit that would have worked about the way the one we have here the u.s. works. they did that in the wake of the 2000 eight financial crisis and it did not survive long. the reason it did not survive is

because they started, politicians, started playing with it the way the politicians here in the u.s. play with it. weaponizing it, using it to score political points and so forth. they very quickly decided this was a huge mistake. they abolished it in 2013. i am worried. i will say i am more aware than i have been in years past. we have been here before, in a sense. we get right up to the brink and then in the final hours, usually congress comes together and agrees to raise the debt ceiling limit. that is what i think will happen this time but i am definitely more worried than i have been in the past. this is not the congress of three years ago or even 10 years ago. there is real cause for concern. >> you talk about this becoming a weaponized form of negotiation. do you get good budget policy in this way? >> no. not at all.

the time to make budget policy is in the normal budgeting process. i served for a period as the chief economist for the u.s. senate democrat budget committee. there is a way for them to come together and make decisions about spending and tax policy. that is the appropriate forum for vigorous debate about our priorities and whether we want to make substantive change. but, this moment, playing around with the debt ceiling limit is not the place to be having those negotiations. it is not where it should happen. haidi: this is just one of those things we come around to when it comes to u.s. politics and economics. does it chip away at the u.s. reputation? the idea of a deadbeat debtor

gets thrown around in the context of president biden and janet yellen saying that is not what the u.s. is. does it eventually have that reputational impact when we see people treating this like junk bonds? >> ateneo. -- i do not know. it is not good, reputational he. on an international stage, as the global reserve country, we look frankly were list carry on for months on end with the treasury secretary that has to continually go on television with a president who has to take questions about whether the u.s. is going to honor obligations that congress has committed to. this is embarrassing. we should stop doing. shery: we saw what happened in 2011 when we had that showdown affecting consumer sentiment. not to mention this selloff in equities p how higher the economic stakes at this point

when everybody is talking about a potential recession with the fed continuing to tighten and prices still high? >> you're right. everyone is talking about recession and one of the things that has gotten lost in the discussion around default is that this would not result in the sort of downturn we might describe as economic recession. this would be a spiraling downward that would culminate in something that looks more like a depression than a recession. if congress refuses to raise the debt limit and the executive branch does not take other options that are available to it, so in a sense it says ok, you are forcing us to cut spending to match revenue because we are not going to issue new bonds, and so we are going to be forced to spend only what is coming in in terms of tax revenue. that forces a huge cut in

spending. immediately, rippling through the economy. that spending was somebody's income. now those folks will spend less, so the economy will retract and that will pull tax revenue down and force another round of spending cuts to meet the lower revenue and rinse and repeat, down, down you go. there would be no end in sight. i think it would be much worse than simply pushing the economy into recession. haidi: stephanie kelton, stony brook. good to have you with us. let's continue with u.s. debt talks for morning calls with annabelle. jp morgan on what the impasse means for equity market spirit so far we have not seen it mean a whole lot. is address repressed volatility echo -- volatility? annabelle: perhaps a lack of

convention. taking what happened in 2011 and the debt ceiling impasse at that point as a guide, we did see a selloff in risk assets at that point. jp morgan saying this could be, this scenario happening once again if we see talks ragging on. perhaps not quite the same magnitude because what really amplify the issues in 2011 was the euro debt crisis that was happening at the same point in time. but at least a modest selloff if talks to go down to the wire. i mentioned the church we can show around where u.s. stocks are trading. you can see that for six straight weeks now we have not moved more than 1% in either range. jp morgan also saying those moves we did see higher these we see her and earlier was down to just a handful of stocks that had been gaining. they also say it disappeared in a flash.

shery: paul tutor jones predicting that stocks will rise, basing that forecast on what he echo annabelle: -- on what? annabelle: he talked to cnbc. he is looking at june, 2000 six in particular because he is saying that was a period in which the fed stopped raising rates and we continued to see equities raise for a further year. he is saying that essentially that is why we can expect stocks to rise for it he says the fed is done raising rates, inflation has been quelled. he says even if we do see recession, which he does see for the third or fourth quarter, we can expect gains to extend for equities. haidi: annabelle with a look at the radius -- a look at the latest. distance is starting to feel the crunch tried to policy. he told us policymakers are making headway in the fight

against inflation. >> when i think about the trajectory of inflation, i think we made really good progress on it. you think about where the economy was and where inflation was last summer compared to today, we have seen really positive things happen. we are not denying at 10 percent levels, we are in the 4.5% range. that is still two times what our target is. there is still a ways to go but i think we have seen a lot of some of the frosts come out of the inflation measure. one of the measures i look at is the number of goods in the basket used to calculate cpi that are showing inflation above 5%. right now, in the latest report, that came under 50%. less than half are in that range. at one point, it was 70% or 80%. we are seeing that narrow and to

that is a positive sign. we are starting to see our policies really work. >> do your lot more additional rate increases? >> no. in today's environment where there is so much uncertainty, we can't rule out anything. i think we are in a place now where we have been in restrictive territory for something like six or eight months. that is about the time you would expect to see policies bind on the economy. when i talk to businesses, they are starting to feel that and that is a positive thing. as you know, we have had surprise after surprise over the last two years and most of them have been to the negative when it comes to getting closer to our inflation target. i am going to keep that on the table for sure but right now i am feeling like, let's see how our restrictive policy is working and that will give me a sense of what our next move needs to be. >> you still have an inflation report into cpi. >> two more. >> before your next meeting.

what are you thinking now for the june meeting? >> if i had to have a vote right now, i would vote to hold. as you noted, we got two more inflation readings into jobs report that has got to come out. there's a lot more information we are going to have as to what's coming out. haidi: raphael bostic, atlanta fed conference. if you've missed any part of that conversation commit tvgo is your function. you can dive into any of the securities or bloomberg functions we talk about or become part of the conversation by sending us instant messages during the show. this is for bloomberg subscribers only. this is bloomberg. ♪ ♪ what if we live to 100. i don't want to outlive our money. i keep eating all these chia seeds. i could live to be 100. we work with empower, even if we do live to 100 we don't have to worry. eh, not worried.

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ahhh ♪ >> we saw the first market reaction in turkiye. elections today and over the weekend. we had president erdogan not really achieving the outright victory. we are headed towards a runoff with his main rival on may 28. haidi: the turkish lira was weaker, but we heard state banks had intervened. on the other hand, we had incredible strength for the thai

baht where the election results were clear about the majority in parliament. haidi: these were the two key emergency that she emerging-market elections we were watching. it has been quite a shocker in how it has turned out. markets were wrongfooted when it comes to the lack of outcome in turkiye. we did not expect that level of uncertainty in that race. in thailand, a big rally in the bought -- as we saw opposition party first leading the vote, then agreeing to link up to form a coalition government to give them a clear majority. a stronger than forecast showing in sunday's elections. . we will watch the outcome, but it looks like assets will see the upside there as we get more certainty out of that. shery: we had first quarter gdp numbers as well, right?

we have this week in thailand, 2.7% growth from the year before. i know it is a bit back looking, but just the fact that they finally seem to be making a comeback after the economy lacked peers in southeast asia, it seems tourism is making a comeback. in the stock markets in thailand, we saw a little more caution. that was the case also for turkiye. i know we are going back and forth, but they were really the big ones to watch this weekend. pretty exciting, especially when you look at istanbul triggering a circuit breaker, given of course that markets were not expecting this. at best, we are going to get a split government, if we do see president erdogan or his rival winning. in the runoff. erdogan's alliance in

parliament. haidi: given that the state of the economy for turkiye, the prospect of economic rejuvenation or at least a return to economic orthodoxy was driving a lot of that hope. we are not going to get a straight path to that. not to mention, the economic outlook for thailand and to the way it is going to get the lift from the china reopening, tourism and consumption are all pretty strong. interestingly, we do tend to see strengthening in the thai baht and what we typically see is that coming down a little bit after. we will continue to watch that to see if this is kind of the peak for the thai baht. let's get the vonnie quinn. vonnie: treasury secretary janet yellen says the u.s. is already paying a price for its failure to raise the debt limit. in a letter, she cited rising borrowing costs for securities

in june. reiterating her warning that her department could run out of cash in june. kevin mccarthy says there -- they are nowhere near a deal. elon musk was issued a subpoena by the u.s. virgin islands in its lawsuit accusing jp morgan of knowing benefiting from jeffrey epstein's sex trafficking. the territory says it had reason to believe epstein referred to or attempted to refer musk to jp morgan. that has now asked the judge to authorize alternative means of serving the subpoena. the u.s. is preparing to buy up to 300 billion barrels of crude oil to refill strategic reserves. the emergency stockpile is at its lowest level after releasing more than 200 million barrels ticker prices last year. deliveries into the emergency government reserve are planned for august with awards to be announced in june. global news powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg.

haidi: australia's lng producers proposing multibillion-dollar investments to revive growth. export earnings from lng are expected to decline. what is the rationale behind thinking about production? >> we have a chart that illustrates or point that shows volumes plateauing. the value of those declining as well. they made a peak at $91 billion last year when the world was in the grip of an energy crisis, but petroleum producers association have its annual get-together in adelaide. unsurprising, they are upbeat about the outlook for their own industry. they see gas playing a significant role. we heard from woodside earlier this month saying, customers and japan are still really want a natural gas. it is expanding its 1200 billion dollars. >> we always end up talking

about the project. this is australia apostle largest untapped gas field. both sides considering developing its stake with petrochina or abp or shell state. developing this project would be huge, $36 billion in through the 2060. haidi: how much of a factor is the war on ukraine playing in these decisions? >> a huge factor. that really did up and everything. customers in europe still need gas supplies to replace those supplies disrupted from russia but the main beneficiaries of that have been the united dates and cutter. australia has lost its position to the united states and the tyranny of distance is a problem. shipping australian gas already europe is expensive. and it is difficult. but there are gaps in the market caused by the ongoing conflict. those gaps need to be filled,

that is the upside. on the downside, there is a risk the energy transition in southeast asia could happen a lot or quickly than the industry anticipates. japan and south korea, two of australia's biggest customers, seeing transitioning to nuclear energy and renewables. the pictures cloudy. shery: tune into bloomberg radio so you can get more on the days biggest newsmakers. in-depth analysis, broadcasting live from our studio in hong kong. this is bloomberg. ♪

♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently.

it still does. what can you do with spy? ♪ ♪ haidi: -- loaded up on shares of regional banks amid turmoil in the sector. it is that type of year where big financial firms file their 13-if. su keenan us with the latest. that is getting a lot of attention. su: burglary is famous, pretrade by christian bale in the big short, because he predicted the big financial crisis, the crash of the housing market back in 2008. in fact, he made billions as a result.

actually betting against subprime mortgages. it is a lot of attention being paid. we will get to how he feels about banks, but very interesting because he is known as a contrarian, he has doubled down on chinese text stocks and has started buying at the end of 2022 and has. alibaba now makes up 20% of his funds portfolio. they are the biggest holdings he has. he has tripled his jd.com stake. he has doubled his alibaba stake. what really got a lot of attention earlier in the day in the u.s. was the fact that during the financial banking turmoil we recently had in march and april, he was buying the regional banks. a lot of the usual suspects. first republic, pac west, new

york community bancorp. the view is that perhaps you can see these have actually got some gains here that if a smart guy like burry is buying, perhaps there will be a bounceback in shares. he was also buying bigger shares, but getting a lot of attention. >> traders say meanwhile turning pollution on ai who announcing grow along on artificial intelligence? su: two of the biggest traders are billionaires and have family officers. david tepper. both appear to be loading up on various stocks that are really benefiting from the ai boom. those include nvidia, microsoft and others. stanley druck miller in a recent conference said he believed that ai is every bit as official and could be as impactful as the

early days of the internet. you can see that reflected in his purchases. notably, appaloosa. buying a lot of arc. kathy woods. ponderosa pine. which focuses on the main tech boom. there is a bed both on ai and tech from some of the biggest traders. >> su keenan. that is it for daybreak australia. daybreak: asia is next as we count down to the start of trading this tuesday. this is bloomberg. ♪

haidi: