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asia coming to live from newark, sydney and hong kong. >> we are counting down to asia's major market opens. >> the top stories this hour, prices in the u.s. triple ia rating watch negative as victims on the debt limit continues. the latest fed minutes show officials leaning towards a pause in june but signal they are ready to stop hikes. investors are also waiting on the bank of korea decision later. plus nvidia soaring after giving a bullish outlook to demand for ai. >> take a look at how u.s. futures are trading early in the asian session we are still higher but paring back some of those earlier gains after the announcement by fitch. they are still saying that a u.s. government default is a low probability of the fact that you have that ongoing political brinkmanship in washington is among the factors that adds risks, downside risks for the u.s. and for that rating. it still nasdaq 100, futures higher by one point 3%.

we talked about nvidia that demand for their ai processors. really sending those sales forecast higher, we are watching the treasury space, yields were higher across the board in today's session. we are also digesting those fed minutes with officials pretty divided on what they wanted to do with rate hikes come june. take a look at crude prices, really reversing those earlier gains we saw in the new york session, and we had data showing the u.s. stockpiles fell by the most since november. it is all about those debt ceiling negotiations. still ongoing in washington. >> let's bring in our strategist mark cranfield, we've got these latest comments from fitch. they acknowledge the reality of the situation. we know that the two sides have taken default off the table, that is being acknowledged. but going further and saying the brinkmanship, the governance weakness is being identified as what is at stake.

>> in a way fitch is putting into words what several traders and investors fear. the longer these talks take in the more acrimonious they become it devalues, or form an investor's point of view it devalues the status of the united states in some respect. that is most clearly seen with the u.s. dollar. it is no surprise when the headlines came out on the terminal that there was a risk of the united states losing its aaa status, immediately the dollar yen slid. that tells you that traders these days are very active in the market and they also read that headline. it also tells you where the pain threshold is. immediately if there is something for the united states as a whole which is no longer is good it is the u.s. dollar that will be the first place to suffer. that is exactly what happened in the market. we saw gold go higher. very defensive moves which is pretty much what you would expect. of course in the details, fitch

has said there is a remote possibility that we get a default from the united states and therefore the u.s. rating is not going to slide as much as they might expect. they say under the circumstances of an actual default the u.s. rating would slide to aaa minus which is several steps below the aaa level which is significant. maybe it is just a wake-up call for the politicians in washington, they can see the credit rating agencies taking this seriously and if there is a misstep they will be ready to act. traders are aware of it but for the time being this is something they going to put on the back burner, the follow-through effect of this in the market won't be huge because they know, everybody knows that all parties want to avoid a default. even the rating agencies, there is a saying that they would prefer not to face that eventuality. but it is out there, it is a black swan, people need to know about it and you can see if it does happen the first place is the dollar and gold will react sharply. >> perhaps has a very

much-needed wake-up call, we have not seen that coming from the markets. u.s. futures are still reversing those declines we saw in the new york session. how much are we seeing in terms of real volatility in the markets and what does it mean if we get past that x date because we have our call and missed talking about not necessarily being a binary event where the u.s. defaults or not, but what happens at that date plus one? >> there is going to continue to be uncertainty in the market because if they go past that date than the treasury will probably have to start enacting some savings and you'll start to see some sectors of the economy impacted. the last time we had a government shutdown they could not pay some of the government workers, if there is a repeat of that that will affect consumer spending and markets. particularly in the equity space. you have also that other factors offsetting like nvidia,

fantastic outlook because of artificial intelligence. that is going to help boost several parts of the tech sector including in asia. there are parts of korea, japan, taiwan that will see the spinoff from that. then he let fed officials and lots of fed speakers giving warnings that they are not even considering rate cuts until next year. there is a lot for traders to digest, there is a lot more going on than the debt ceiling talks in the united states. the bottom line, and the fed has said it as well, they don't expect a default by the united states. we are looking ahead to a deal being done and they can get back to focusing on what really matters, employment, inflation, factors driving the economy. now there is a lot of talk but it is all very remote and we can now get back to following the fed. >> mark cranfield are analyzed strategist reacting to that fitch announcement and what we are expecting from the markets. fed officials, we have you following what they have been

saying given the uncertainty now it not only because of the debt ceiling negotiations but because of this ongoing monetary tightening. they seem to be leaning towards pausing rate hikes in june but not necessarily ready to stop. that is according to minutes just released from their policy meeting earlier this month. our global economics and policy editor kathleen hays has the details. there is so much uncertainty out there, for the u.s. economy now with this fitch announcement but at the same time fed officials seem divided in their latest meeting? >> i wish they would put the word skip in there because that is the newest lingo. from the federal reserve we are looking at these minutes of the may 2 and third meeting and they do seem to be looking very closely will we pause or not? we have heard that in many recent comments. raphael bostic saying how important the data is going to be, the federal reserve board governor saying the same thing.

the skip of course is when you don't hike rates but leave the door open to the next hike. in terms of what they see next, several participants, more than half of the effingham see members note if the economy evolves be on their outlooks which means inflation getting lower and the labor market cooling off, then maybe they don't need more tightening. at some participants, that is going to be less than half but a substantial amount. commenting that there expect patients returning to inflation could be unacceptably slow, that they would have to do more rate hikes. we just talked to rob kaplan, a former president of the federal reserve bank of dallas, and rob does think they are leaning towards a pause. but they are not just there yet. let's listen to what he said. >> it feels to me that they are moving toward a pause, it does not surprise me that they are having a debate though because despite all these rate increases

the economy is holding up pretty well and i think that is a bit of a surprise. >> of course one reason he thinks they are having this problem figuring out what is going on is because there is so much fiscal spending and the economy. the inflation reduction act and the programs passed during the pandemic. money is still out there and that's why even with so many rate hikes, 500 basis points, they still have inflation at unacceptably high at which a lot of them have said. it is a pot that is being stirred. data dependence as much more than ever, three more reports apparently could actually determine the next two inflation reports to determine these people on the fence. how they make up their mind which way they go. >> of course we did ask him as that news was crossing bloomberg about the risk of a u.s. downgrade take a listen. >> i think what is going on with

fitch speaks to the fact that default should be off the table but we do need a real discussion because we are going to have problems down the road if we don't get fiscal discipline. >> unthinkable if the u.s. will default, that is what everybody says. in a little more nuanced level robert kaplan telling us that the debt ceiling talks could lead to some changes in the fiscal spending, the fiscal programs that could offset some of the money that is already there. i think what is also interesting what chris waller said today the federal reserve board governor is asked how will this affect your decision, he said i am not letting it. he assumes they will get this done, there won't be a default and that obviously is what many stock investors are thinking because we have not seen a huge selloff in stocks. that does not mean we will not see one but every day goes by we get closer to that point where there won't be enough time left to do what you have to do to get

this done. the closer we get the more we are going to see a fed officials, probably investors looking at this and will probably awaiting their reactions. >> kathleen hays with the latest let's take a look at one reason why we have seen futures holding up. shares are jumping after hours trading after the chipmaker gave a bullish revenue forecast for the current quarter, the firm it sees its sales to be about $11 billion shattering the estimate of 7.1 $8 billion let us bring in sarah who leads our technology team. there was some concerns about whether the numbers would be justified going into this but there is so much hope and enthusiasm that that demand coming from ai. >> we are seeing it at all the big tech companies right now, they are all investing quite heavily in the ai boom and you can see that in the data center business that has become such a driver of this quarter and you may historically be thinking of

and videos graphic company but this is just really above and beyond. the driver of their business now. they have said that they will continue to upgrade and update these data centers to have even more capacity for generative ai. >> is this an nvidia specific story, we saw before the results chipmakers actually pressured because analytic devices gave a week outlook. >> we did see some other chipmakers gain on the news such as amd but i think that nvidia has done such a good job of positioning itself as the chipmaker for ai that i think they are benefiting so much for the demand right now. >> our tech team leader, there with the latest on chipmakers. let's now turn to belt with a check of how we are setting up for the asian markets. >> thank you, the task for investors today is going to be trying to figure out which headlines to pay more attention to. you want to be focused on nvidia

given that chicago indicates futures moving higher off that. this is a market alongside korea, taiwan as mark cranfield was just saying, that could benefit from this move into generative ai and the boom out of those stocks. but at the other side, you have those headlines crossing from fitch. this threat of a cut which aaa rating, we are seeing futures pointing weaker in australia and china, new zealand already online to the downside. investors concerned, not about the risk of a default so much but about the general instability that this is bringing. we are seeing more moves back into gold, had it earlier been above that $2000 an ounce level. in terms of what we are watching, a lot of the moves coming into the fx space, we have seen the dollar-yen dropping or dipping. our market team saying that is unlikely to last too long, and more of a knee-jerk reaction coming through. still down to those fitch lines crossing the yield differential

in focus and on that, given we are talking about central banks focused on those moves particularly with the moves in the kiwi dollar. on wednesday the bank of korea is do to make a decision and the vast expectation is for it to continue holding. the offshore yuan still pushing past that seven level and again something else to note, the csi 300 has now raised all of its gains. >> let's get you to su keenan with the first word headlines. >> we start in china, president xi jinping wants china and russia to work together to improve their ties in multilateral groups. this amid growing pressure from the west. according to state media, president xi told visiting russian prime minister that beijing and moscow could better collaborate at the united nations in the g20. both china and russia are facing sanctions from the west. to florida where governor ron desantis has officially thrown his hat into the presidential

ring. giving former president donald trump, now also running for president, his strongest challenge yet for the nomination. desantis launched a twitter livestream with elon musk, a livestream with a bit -- more than a few glitches. but this was an announcement that signaled his plan to run a nontraditional campaign that was built for social media. former prime minister imran khan is offering to hold talks with pakistan's government and military after his party was threatened with a band. defense minister says that con's party was behind the violence on may 9 when he was briefly arrested by pakistan's agency. kohn announced he is ready to form a committee to talk with anyone who is in power. finally, on a sad note grammy award-winning singer and rock

and roll hall of fame or tina turner has died. she was 83 years old. the so-called queen of rock and roll was known for her hyper energetic dance moves and sold out massive stadiums. attributes are pouring in from stars such as mick jagger who is calling her inspiring, warm, funny and generous. the white house says that turner's death is a massive loss to the communities that loved her and to the music industry. global news powered by more than 2700 journalists and analysts in 120 countries, i am su keenan this is bloomberg. >> coming up, regent atlantic private wealth says markets are not punishing washington enough for the debt ceiling impasse. more on that outlook next, this is bloomberg. ♪

>> take a look at how u.s. futures are trading at the moment, they are higher but they've pared back some of those earlier gains after fitch ratings came out saying that it could be downgrading u.s. credit ratings to reflect worsening political partisanship. we are still dealing with that debt ceiling negotiation in washington. really not seeing much progress, at least today and that hit markets already with the s&p 500 falling for a second session.

fitch saying that default is a low probability event but the brinkmanship is one of the factors that signals more downside risks. when it comes to the markets and the ratings itself. >> let's get some more views on that, a partner in co-ceo at region atlantic private wealth joins us, andy this fits in our theme with your views on the scenario we are now working with now that we know we have had a warning shock from fitch saying the likelihood of actual default is low as we know. but really flagging some of the concerns about broader governance, product fiscal planning and frameworks that perhaps need to be put in place before we get to this point in time. you have really talked about this idea that markets have not been putting on the pressure. is it important that we see these other pressure points now? >> i think markets are

responding to this boy who cried wolf phenomenon. they have seen this movie too many times before. they have already seen the ending and they are not responding to it with a of ferocity, a lot of volatility. at least not yet. i think the importance of what fitch has done is they said what everybody is thinking. which is this constant agitation, this constant drama of will be or won't we pay our debts as they come due as a nation, is a really important prague that important the market has not been delivering today. >> how are you positioning at the moment, does this sort of change the trajectory in terms of what kind of deal we get, what kind of spending cuts and up being the strings that are attached? >> i think in terms of what is likely to happen as far as a deal goes, the deal itself is not likely to dramatically change the course of fiscal spending in washington.

the reason i don't think it is likely to change is because everybody's bargaining position is really weak so think back to 2011. we have a similar composition to 2011, a democrat in the white house, narrow republican majority in the house of representatives a narrow democratic representative -- in the senate and no one has leverage to get enough done. it is when nobody has enough leverage that the debate gets more acrimonious. what is likely to come out of this is some modest concession from both sides, just to get is not to exceed that date which is drawing nearer and nearer. one of the most important news items over the course of the past weeks is the idea we are not going to make it to june 15 when a lot of tax collections come in which leaves us a little time to hammer out a deal. >> remember what happened in 2011, it was interesting that when we had that debt crisis stocks plunged more after the debt ceiling was raised. what is the risk here for equity

in markets as we go towards x date and if we pass it? >> i think the real risk, the market has been focused on inflationary risks over the course of the past 24 months. with good reason. we have an uncommon amount of inflation, a peak since the 1980's for cpi gains. the risk of a debt ceiling or default, the risk of the treasury not making payments is a profoundly inflationary risk. in a way that could reverberate through the market. ironically the way it is likely to with the most is by benefiting longer-term treasury bonds so the very same treasury that is in default on its promises may actually be a flight to safety still. >> which is kind of what we saw in 2011, that counter intuitive rally after the s&p downgraded the u.s. credit rating. do you see the u.s. or do you

expand and go beyond in other parts of the world where things are a little bit more stable? >> things are a little bit more stable but if we go back to 2011 an example, and again ironically, u.s. assets tended to outperform not just in the immediate consequences of 2011 and that debt ceiling debate but for a number of years after that. i think there were a number of reasons why which may or may not be repeated, i see a fair amount of value intentionally in international assets but at the same time especially for a u.s. based investor that presents a lot of risk because as that deflationary risk comes from a debt ceiling crisis it also could be beneficial to the u.s. dollar. >> is japan a good beta play in that respect? >> japan is having its moment in the sun today. it has had a very large market rally, releasing levels that it last saw in the 1990's.

japan's leading companies are primarily in industry and that creates a risk that there is a lot of cyclical risk tied to being an investor in japanese equities. i think what i would want to see is more confidence about the trajectory of global growth to be super bullish about the next stage of japanese stocks. >> andy, always great to have you with us partner and co-cio with region atlantic private, we have plenty more to come on daybreak asia. this is bloomberg. ♪

>> this is a cross futures trading at the moment, australia setting up for the start of cash trading we are seeing a bit of a downside there. 4/10 of a percent lower when it comes to trading here in

australia. australia also -- new zealand also on the back really talking about the current ratings set to contain inflation but of course that height -- hike seems like it will lead to a hall -- hold but a great deal of uncertainty in terms of how the economy will play out on -- whether moral me need to be done. nikkei futures looking pretty positive but watching u.s. futures at the moment a little bit softer than what we saw just before fitch saying the aaa rating might be cut or on this discontinued debt limit impasse not to mention the potential

>> this is daybreak asia i am su keenan with the first word headlines. house speaker kevin mccarthy has expressed optimism on striking a

deal to avert a debt default. he says they have time to strike an agreement and to get it done. his comments came after a four hour meeting between negotiators between he and biden, secretary yellen has warned the u.s. could run out of money to pay its bills as soon june 1. the australian government meanwhile is asking police to consider a criminal investigation of a pwc scandal. it involves the use of confidential government information to shop tax advice to clients. their ceo tom seymour sat down earlier this month after emails were released about the firm's activities. former telecoms executive ziggy witkowski has been brought in to conduct an independent review. a court has annulled a lower court's decision to release former crypto mogul doak quan unveiled that decision also applies to his former cfo.

earlier this month both won approval to be released on a $430,000 bond. the pair will now remain in jail. global news powered by more than 27 hundred journalists and analysts in over 120 countries i am su keenan this is bloomberg. >> let's get you to how we are setting up for these asian markets. >> thank you heidi, a very busy news flow over the couple last hours. something for the bulls and the bears we will kick off with the positive. that is most certainly it nvidia's earnings that came out after that stock surged up 25% in after hours. a blowout report coming through in forecast for the july quarter, 11 billion dollars. compared to a consensus of 7.2 billion. a huge beat coming through. that is something that has positive ramifications for other markets particularly those in north asia that have heavier tech, taiwan, korea, japan.

nikkei futures coming online. in singapore they are flat but you compare that to the losses we are seeing for other markets, new zealand already online to the downside. that is the positive news coming through. the question is how much investors are going to be focused on that given that the other big headlines that crossed earlier, which is fitch placing the u.s. at risk of a aaa rating cut. investors are still seeing this as an outside chance, given the vast majority are expecting a deal before that x date approaches. in terms of the reaction to that we have seen it u.s. futures still trading in positive territory but they are off their session highs, losses in gold taking slightly high. a knee-jerk reaction. and the dollar-yen dipping. likewise investors saying that is unlikely to last long but the big focused on those fitch headlines. >> they are not liking what they call it repeated debt limit

brinkmanship. let's bring in our next guest neil bradley executive vice president and chief policy officer at the u.s. chamber of commerce. good to see you again. with all of this uncertainty in washington how are your businesses coping? >> great to be with you again, there is nervousness. every time we come up on one of these x dates we go right up to the 11th hour. there is concern that a deal won't come together, that somehow for the first time in over 200 years the united states government would actually default. i think the level of concern is greater today than it was even in 2011, but we still remain optimistic that a deal will come together and will get enacted. it may be within a hair's breath of when we actually hit the x date. >> we are hearing that they are still far apart on issues especially when it comes to

those spending cuts demanded by republicans. does it matter to businesses what sort of deal comes out of this, given a lot of the things that are on the chopping block at this point. what are your businesses telling you about what they want to see when it comes to a compromise? >> there are really about four issues on the table right now. we are sending unspent covid money, there is no objection to that. this discussion you referenced about the appropriate level of spending, we are really down to minor differences in the grand scheme of the federal budget. it is important to get results, i don't think the business community is concerned about which way they get resolved. we are hopeful we will see real permitting reform so that it becomes faster to build things in the united states. that would be a real positive for the economy coming out of this debt limit deal, so you add

to that this issue of work requirements, i think business, the u.s. chamber is quite comfortable with the scope of negotiations here and we hope to see things like permitting reform that actually improve the economic landscape going forward. >> how much is this is -- a bigger distraction from some of the other more pressing issues that business community members are dealing with right now. advising cost inflation outlook, the outlook when it comes to monetary policy not to mention some of the tech and geostrategic concerns as well if you are doing business across borders? >> this was on no business leaders top 10 list of things that they were hoping to see washington tackle this year. it is one of those things that washington foists on itself. it is one of those things that washington has to do, we know we

have to get through this. but no one is looking at this and saying relative to taming inflation, relative to the work force shortage, relative to the geopolitical global threats, that companies are facing -- that this really stands in comparison to what we would like to see addressing those concerns. >> at the same time of course, you can see when it comes to -- this reaction we have had when it comes to a lot of these market assets to date, that we have been here before. and we know that default is off the table, would it be helpful if we had a better framework when it comes to these sorts of negotiations and budget negotiations going forward so that businesses do not have to be distracted by getting to the edge time and time again? >> it would be better if we could avoid the concern and consternation of tripping into default. that said, we really do need a

mechanism to deal with our debt and deficit. the current budget process structure in the united states does not lend itself well to getting our fiscal house in order. whatever happens with the debt limit on a long-term basis, we really do need to focus on how we write size federal government spending because we simply cannot go on running trillion dollar plus deficits in good economic times. the issues that speaker mccarthy, the republicans have brought up a really important ones, even though we wish we had a better place to resolve them than these debt limit increases. >> given that we have been here time and again are your members contingency planning at all? >> some of them are contingency planning. prudent businesses are walking through the scenarios. i think the market is signaling more than it has in the past

that there is concern that this time might not work out at the 11th hour so people tend to focus on the equity markets. as you noted, they tend to be a little bit lagging in terms of resolution of a debt limit. if you look at the records that were set on the one-month treasury yields, if you look at the differentiation between one month treasury's and three months, if you look at for the first time in my memory, you have corporate debt with a lower yield than one month u.s. treasuries that is the market sending a signal to policymakers that we are more concerned than we normally are. just because it is not showing up in the equity markets yet, i don't think we should be so sanguine that market participants are not seeing something here they don't like. >> there are so many implications depending on not just default implications but potential downgrade

implications, what happens to the u.s. dollar, what happens to how we see pricing across government debt and corporate debt. is that something that is of concern whether we see increased pressure and a downside pressure on investor sentiment looking into those businesses? >> yes that is a concern. i think the biggest concern is whether it for the first time we have crossed over the x date. if we cross over and there are obligations, not just interest payments but obligations of the federal government that it is unable to pay, that is unchartered territory. that is a place we have never been before and i think that would be much more consequential than even with the rating agencies have to say about u.s. debt. because it would mark a new period in terms of the fiscal crisis and management of the united states government and one

in which you could not continue to go around and say that u.s. treasuries are a risk-free asset. that is what is really at stake here. not so much the rating agencies, is the bedrock assumption that is really built into the global financial system that the risk-free investment are u.s. treasuries. if that gets called into question because we stop paying even some of our obligations it is going to have real long-term negative consequences. >> and of course not helping our some of these doubts as to whether that x date is coming from republicans. and what happens for markets if that x date plus one. great to have you with us, executive vice president vice president and chief policy officer at the u.s. chamber of commerce talking about those implications as we still don't have that debt deal and how that plays out for u.s. businesses. much more to come here on daybreak asia, this is bloomberg. ♪

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>> nvidia soaring after trading booming, ai processors supporting that sales forecast well beyond expectations. let's bring in our next guest who runs a company benefiting from the rise of ai and has nvidia as their largest holding. here with us as the director of research, i think the question on everyone's lips not just for nvidia but across the exuberance of what we have seen for generative ai is is it going to live up to the hype. how much consolidation do we see and how do you know you are backing the winners as opposed to the ones that might eventually get washed out? >> thank you for having me, i think for nvidia at when we sit here and look at the numbers they just printed, more important the guidance going forward, it is clear we are at an inflection point for ai technologies. in the beginning of that

investment cycle it starts with the hardware and chips. nvidia has plus or -80% of market share of chips so they are by far and away the leader and best technology in that space and that is why we are seeing this huge outflow in orders. it is because they are the leader and have the best technology. when it comes to the other players, on some other platforms, we think for at least generative -- general purpose generative ai, the larger players like microsoft, google, are going to be dominant players. >> what is the timeframe that you see and how this plays out. so much of this is built on hope of future commercial applications and a favorable regulatory environment, we don't know what that is going to look like either. what is your modeling in terms of how the next five years plays out? >> i think right now nvidia is a top holder because we think the

infrastructure, we have heard talk about the shift of data centers and moving to -- nvidia has defined accelerated compute for years. that is where it is starting. but today you are even seeing generative ai disrupt a 300 plus billion dollar market. it is disrupting other areas. it is going to be embedded into microsoft word and office, we saw them announce that basically they are bringing generative ai assistants. we used to have cliffy now we are going to have generative assistant built into windows. although some of these revenue streams are not huge, it is really reinforcing that most of these companies have built around their businesses. >> the overall forecast right now implied this huge surge when it comes to data center revenues, bernstein saying it is about 75% surge. are we expecting this to be sustainable or is it a one time deal?

>> when you look quarter over quarter the growth rate is huge anywhere from 75 to 100% quarter over quarter depending on how you model it. beyond that nvidia is guiding to sequential growth in the second half of the year. they are expecting this to get better -- bigger and part of that is supplied. they went on and talked about how they have already contracted supply for more chips, that is probably someone like samsung making the chips for them but also the rest of the supply chain and packaging. these things have lead times they have to get the supply chain in order. but once supply catches up we will see what demand really looks like, but given the cadence of the uplift in the current quarter even with limited ability to get the supply chain running, it is clear that there is a massive exponential ups swell in demand for ai chips from nvidia. >> is this an nvidia, and many of those chipmakers that are in the ai chips business, because before the results we had analog

devices giving out a week forecast which sent other chipmakers down during the new york session. how is the broader semi conductor industry doing? >> broadly, there are a lot of factors affecting thei conductor industry. the market is still weak and that is the largest for chips, the second largest and a market is pcs. we saw innova print yesterday that market is not doing well, but nvidia is a bit isolated and insulated versus those other markets because they focus mostly particularly, not a data center, 50% and growing of their revenue -- they are focused on cloud and ai investments. they are writing this wave and it also helps them at this point in their cycle, they have dropped out there gpu business that went into decline a year ago as some of the crypto demand came away. they have new products coming there as well. when you look at the nvidia idiosyncratic story relative to the rest of the sector that is playing out in the guidance for

this quarter and how we think about the rest of their year and next couple years with ai demand picking up. >> the ceo jensen spoke at length about the risk of what happens in the u.s. relationship with china. he said these export curves have a company like his with their hands tied behind their backs, that there is enormous risk of enormous damage given how bit the chinese tech market is. is that something you can account for in the way that you invest in the company's you invest, because we know has also been counter actions taken by beijing online for example. >> nvidia was already under the gun a few months ago with domestic chips being exported to china. they retooled some of their older products to meet the requirements of the export restrictions so at least for now they have been able to skirt around that and the impact has not been so bad. obviously geopolitics and this

whole tech war that has been going on for several years is a risk for everyone in technology. it is not unique to nvidia. you have to think about how quickly they can adapt their portfolio and they can do it pretty well. at least for now the risk there is not super bad and as we think about the chinese government, they have made some supportive statements of generative ai. we have seen chinese companies come out, it is clear that they are building their own models and training them. right now they don't have any other options other than nvidia. just from a viewpoint of if they want to see a domestic generative ai market growth they are going to need nvidia. >> good to have you with us, director of research at brown hill investments with his views on the semi industry. here is a quick check of the latest business flash headlines, ex punk has recorded a wider than expected quarterly loss after getting entangled with a

price wart sparked by rival tesla. the chinese automaker posted a first-quarter net loss of $332 million, analysts forecast compiled by bloomberg had suggested that $277 million deficit, they expect to deliver 22,000 vehicles at most this quarter generating up to $679 million in revenue. chinese streaming platform is exploring a second listing in hong kong, the subsidiary of baidu says it wants to bring in more investors as it seeks to compete with rivals backed by alibaba. it's lewis -- u.s. listed shares are down 12% since 2023's start. speaking exclusively to bloomberg's ceo said the company is working to boost revenue significantly this year. >> from an operations standpoint we hope our revenue this year will have double digit growth rate.

wall street forecasts 832 to 33 billion yuan, because wall street's analysts may be more accurate in analyzing details logically than our own predictions. >> we have another big conversation coming up on friday on bloomberg tv, we speak to the ceo about the outlook for macau's casino sector as the gaming hub it sees a boost from china's reopening. this is bloomberg. ♪

>> just an alert on bloomberg right now, we saw another week of inflows when it comes to foreign buying japanese stocks. we are talking about 867 ¥.5 billion coming from 800 and 8 billion already bought the previous week. this data is a little bit backwards looking but it just gives you an idea of how much interest there has been when it comes to foreign buying of japanese assets when it comes to japanese bonds. we are also talking about ¥1.1 trillion but we are watching the stock space very closely because we have seen the nikkei and the topix top of those three decade highs. although we are lower from there

at least. >> there is still so much uncertainty right now from a debt ceiling negotiations, but we also have the bank of korea decision being set up today. looking at the dollar risk potentially being assessed when it comes to that warning from fitch about a potential cut to the aaa ratings for the u.s.. that has been the big and whether that puts a little more pressure on the u.s. house speaker on president biden, the negotiations given that they signaled that optimism could really not much meaningful progress. this is a picture across asia as we set up for this -- set up of cash trading at this time. we are seeing new zealand and australia sending a letter -- little lower at the moment. it doesn't look like that sink is over but a great deal of uncertainty still when it comes to how the potential recession plays out there.

the nikkei futures are looking like they are seeing a little bit of a bounce of course firm focus when it comes to that creditwatch morning for the u.s.. >> which actually hit u.s. futures trading early in the u.s. -- asian session. we are back to's levels lower than that fitch announcement now but this having to do a lot with a boost coming from nvidia after their first quarter revenue beat estimates but also that demand for ai processors boosted their sales forecast. we are seeing that upside in nasdaq 100 futures, at one and a half percent. the market opens in sydney, seoul and tokyo are next. this is bloomberg. ♪

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counting down to asia's major market opens after fitch places the u.s. on grading watch negative, that aaa rating could be cut. fitch saying that the default probability here of the u.s. government is very low but at the same time the repeated debt limit been shipped in washington is adding to downside risks to the rating. we did not really see much progress being made this week when it comes to an agreement. on top of that officials remain divided on pausing next month. >> some division amongst policymakers there and you can add to that the other big news, that was a blowout forecast coming through from nvidia. plus the breaking news well from singapore. cracks that's right we have gdp numbers out of singapore at the moment, we are seeing gdp year on year that first quarter final reading seeing a gain of zero point 4%. better than expectations of 0.2%

, accelerating from the previous reading of 0.1. seasonally adjusted the quarter on quarter reading for the first quarter final gdp read is a contraction of 4/10 of one percent. slightly better than expectations of a contraction of 6/10 of 1%. also an improvement on the 7/10 of 1% contraction in the previous reading and we do know that when it comes to the inflation fiction -- picture the core inflation has been holding steady, the central bank of singapore saying the signals a path for moderating price gains ahead. we do continue to watch in terms of how that monetary policy from the mas continues to play out but when it comes to the gdp numbers for the first quarter, seeing growth of 4/10 of 1% year on year. and when it comes to this sector breakdown we are seeing manufacturing seeing some weakness, as well as goods productions and some of that industrial side of the economic

story seeing a little more downside pressure than services. we do know when it comes to events and travel singapore has benefited from that resurgence post-covid. >> a lot of reopening focus their in the country but in terms of the open today of japan, korea and australia, the big things is nvidia and fitch headlines. placing the u.s. aaa rating on watch, negative. suggesting a default would drag the double 82 minus, investors seeing a deal before the so-called x date but it is sending jitters across the markets. the most notable has been -- has been the dip lower in the dollar yen. they are reporting this is unlikely to last, that rate differential very much in focus between the fed and the boj. and reporting a note that the yen could gain 7% in the near term ahead of the june policy

meeting. the other big news is nvidia. we had that sales outlook absolutely smashing forecasts for the july quarter. you can see that surge there and after hours. it is something that could benefit other markets in the world. particularly those more tech heavy indexes in north asia, the likes of japan. even though we see the nikkei coming on a little weaker, we have seen a pullback given that technical indicators suggesting this market had become extremely overbought. let's change on to what we see in korea because it is a market that can benefit from the nvidia news. watching what is happening with the cause deck at the start of trading that is the tech heavy index. and nasdaq futures as well because they are still moving hi even though they were pulled back by the fitch headlines. in terms of what else we are watching, that central bank decision that could come as soon as this hour. policymakers expect it by all economists in our survey to keep that key rate on hold at 3.5% so

we can expect some moves in the korean won off of that. we are seeing it look a little stronger at the earlier moments of trade, revised gdp and cpi forecast coming up for this year and next. changing to australia because we have the open of the asx 200, start of the day here. we are seeing a little weakness coming through, brent crude likewise coming online. it is steady in the early minutes of trade but traders tossing up these tensions on inventories. still that careful watch on the debt ceiling talks in gold, we have seen that taking fracture really higher on the fitch headlines crossing. >> do we have the be ok rate decision today as well? the last two hours have been so hectic. i completely forgot about that. >> you have been on hold so that is one that's easy to remember. >> for a third month but we have been so focused on the latest coming from fitch when it comes

to potential u.s. rating downgrade. let's discuss what the implications will be for the markets with head of aipac investment strategy at city global wealth investments. great to have you with us. given everything in the u.s., i forgot about what was happening with the bok today. what does this do with the investments in asia? are they a good alternative when you have so much uncertainty in the u.s. or do the implications of not getting to a deal in washington heighten that risk of sentiment everywhere? >> i think there is still some sentiment remaining with the debt ceiling but we still believe we are not going to see a default. what is also certain is whatever deal they come up with will have less government spending in the u.s. and that acts as a bit of fiscal tightening. when the deal comes we are going

to have a large amount of issuance to catch up with what was missed over the first half and that is going to drain liquidity a bit. i think the outlook on the u.s. where we originally expected a recession in the u.s. sometime in the second half, i think this debt ceiling deal, if no deal then that's worse. but even if there is a deal we still maintain, so in that scheme of things we still expect interest rates in the u.s. dollar to weaken over time and that is going to be a benefit for assets in this region. >> are there any specific assets in asia that would benefit more, that would be the bigger winners in this global macro economic trend that you are talking about, especially with the dollar weakness? >> i think we are pretty broad for the region. i think first of all, japan is

up quite a lot so there may be some near-term hiccups in terms of positioning but i think the japan story is very convincing. you have growth and inflation pointing in the right direction and such that the boj policy abandoning this ultra's monetary policy is likely so there is a tailwind for the yen. at the same time the corporate governance reforms are lifting, returns and equity and buybacks and earnings are still getting revised. so that is a very solid story. and i think in southeast asia and india it is a similar situation where you have the broader regional recovery in place and there are also beneficiaries of these geopolitical tensions such that there may be more investment.

i think for these markets, they don't have the direct impact from geopolitics but they are also enjoying the recovery as well as potential benefits. >> can a sector that does have a direct impact when it comes to geopolitics, of course chipmakers intact and we are seeing the move when it comes to asian names like hide eggs, apple up 7%, samsung is also gaining and on that blowout forecast from nvidia, how much are you participating in this ai binge we are seeing it from investors and how do you get exposure to that if you are wanting that? >> i think we should all have exposure to this, investors should have meaningful exposure to artificial intelligence. at this point when we are seeing

more cyclical uncertainty coming out of the u.s. we still want to be a little more cautious. the chip supply chain in this region clearly benefits from this trend. but we are still leaning towards companies that are able to finance themselves with generated cash flows so still staying relatively cautious in terms of what to take rather than just going full speed ahead on unprofitable firms. we think this trend could continue for years, but we may still have to overcome some cyclical turmoil. >> you talked a little bit about china already but i am wondering what you think the next catalyst will be. if we will see another leg of this recovery rally, is it still going to be consumer and service is dominated for the rest of the

year or do you see opportunities that are not the low hanging fruit that has already been picked? >> we are currently experiencing a bit of a resurgence in the covid situation which i don't think is that big of a deal. it is essentially, it is not even that heavy. it is a wave, so i think because we have gone three years of this it is still a sensitive topic. my view is the next catalyst in china is probably towards the end of june, early july when we have end of your policies and setting meetings at the public bureau level. in that location we will probably see some decisions made whether they need to increase the amount of stimulus. i think a lot of people focus on fiscal and monetary policy but we are not going to get that

much. it is regulatory policy, administrative policy. particularly in regards to ipos and access to markets that are going to be the game changer for the second half. the other element here is in the first half we are still digesting inventories. that was left over from last year. so the demand has not been able to overcome that. i think in the second half they will be more advanced in terms of inventory cycle and your more likely to see growth in a corporate space. we are looking for the second half to be healthier than where we are now. >> always great to chat with you, head of aipac investment strategy at city global wealth management's. let's get you to new york to, su keenan is there with first word headlines. >> starting with president xi jinping wants china and russia

to work together to improve their ties at multilateral groups, this amid growing pressure from the west. according to state media, president xi told visiting russian prime minister that beijing and moscow could better collaborate at the united nations in the g20. both china and russia face sanctions from the west. to florida now where governor ron desantis has officially jumped into the presidential race giving former president donald trump and also a contender, his strongest challenge yet for the republican nomination. desantis launched the campaign on a twitter livestream with elon musk which had technical glitches and audio problems. the announcement signals was desantis's plan to run a nontraditional campaign billed for the social media era. former prime minister imran khan has offered to hold talk with's pakistan's government and military after his party was threatened with a band. defense minister of pakistan says his party was behind the

violence on may 9 when he was briefly arrested by pakistan's graft agency. imran khan announced he was ready to form a committee to talk with anyone who was in power. global news powered by more than 2700 journalists and analysts in over 120 countries i am su keenan this is bloomberg. >> let's turn to a check of the movers. >> thanks we are just watching the reaction we are getting through to nvidia's blowout sales in forecast in the early moments of trade. we are seeing those names popping in south korea just 12 minutes into the session now. advantest just coming online in tokyo, still waiting on a biden that is a name heavily exposed to those numbers but just recapping them the company is forecasting sales of $11 billion for the july quarter. if you compare that to with the estimate was to around 7.2 billion, it puts into perspective how strong these numbers are. something else that can really benefit these players will be benchmarks in north asia, taiwan

included given they are heavily weighted towards the tech sector. if you change on, another chart that puts this into perspective as investors who have been really snapping up shares of australia's or asia's tech hardware exporters. that has been down to that interest coming through in ai and signs that the chip sector is turning a corner. this chart takes a look at the asia pac u.s. exporters as well as the line and white which shows you the clear outperformance versus what we see for the line in blue which is the broader nfci specific index. the yellow are u.s. stocks so certainly these names are ones that can really benefit and may bank as well saying that traders are picking up these tech makers in droves. >> coming up we will be getting that bank of korea decision later this hour, we will get a preview it next. this is bloomberg. ♪

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>> a quick correction to note, we had a graphic earlier which incorrectly showed moody's as having a negative outlook for the u.s. as we have been talking about it fitch ratings that has said it may downgrade u.s. credit ratings to reflect the worsening political standoff

over the debt ceiling. let's bring in our senior markets editor and bloomberg opinion columnist, we talked a little about your ex date plus one. your thesis yesterday when we spoke, we have broadly seen very sanguine market reaction if you don't look at t-bills obviously. do something like this, the warning from fitch and the fact we did have a massive reaction when s&p made their move back in 2011, past a negative light on the situation? >> i am not sure it changes the situation completely, it makes it that much more difficult and ups the ante. when a regulatory agency takes action and putting a negative outlook for downgrade is an action that can be regarded by some as in its self as some form of a credit downgrade, then it should not make that great of a

difference because rating agencies are looking at all the same things that everyone else's. but the lesson from 2011 which we did talk around last night is when the s&p decided to do what many people regarded as obvious and say the u.s. is no longer a aaa credit. it has an immense impact. i think this does increase the pressure and it increases the risk difficulties, even if as is still likely we eventually raise the limit. >> tell us, historically what we can expect at next date plus one? >> ex date is the date we are giving, the common expression for the date the debt runs out when the ceiling has to be raised. the likelihood is that it will be raised and it is ex date plus one when you saw it markets fall worst during the biggest debt ceiling problem in 2011.

the critical point you need to look at, what is exactly the deal? even if people agree with the general notion of reducing the deficit and reducing federal spending, which many people do, trying to do it too fast could be a really bad idea if this looks like some sort of a frankenstein irresponsible package of spending cuts. that is going to be a problem. and indeed when s&p did their ground date -- downgrade 12 years ago it was in part because they thought the package of cuts was not credible. the other point, and this is where we could see things move differently from in 2011, is lots of people are now going to issue debt to the u.s. government though only recently it is doing this because it wants to raise lots more money which means selling more bonds which means all other things equal, yields going up. the critical point that could be different this time from 12 years ago, but we will not know

until day ex plus one it is whether this time around the perceived credit worthiness of uncle sam has been so damaged for people that they would not regard treasury bonds as a shelter. if that is the case then on that day supply increases and price goes down and yields go up. >> always great to have your insights. thank you so much for joining us, our senior markets editor and bloomberg opinion columnist there. of course, what a day when one of the very important central banks in asia decides on rates and that is perhaps not necessarily the top story of the hour but the bank of korea expected to keep policy on hold. our global economics and policy editor is here with that, this would be a third consecutive month. what would drive this decision? >> they are balancing inflation and an expected slowdown in the

economy and i think what is interesting about debt limits versus central-bank decisions as we get one debt limit decision very infrequently and we are getting a lot of central-bank decisions. the whole question is are you guys done hiking rates yet. the bank of korea looking back, it may have been done three meetings ago. there is so much certainty around this, economists expect the decision will be unanimous and they are looking at inflation. of course right now we are looking at the rate hikes we have seen and they started hiking rates long before the fed back in the end of 2021. i believe is october 2021. he did fit -- basis point hikes along the way and were aggressive in fighting inflation. now the concern is at this point that inflation is still relatively high and in fact you've got the court rate still at 4.6 percent year-over-year

even though the headline cpi is down to 3.7%. why are they confident that inflation is going to start cooling off now, you see that it has peaked, it is a lot lower and still not within target. the other side of this coin is that gdp growth is expected to slow this year. there is so much concern about more global weakness in demand, korea is a major exporting nation. if the u.s. goes into recession, if the others countries slow down and go into recession, if china's recovery is not looking as hot as it would that is another reason they are expecting to hold tight. here there is going to be a sense it is about messaging, are they done hiking rates, are they looking to cut at some point, i think that is what everyone is waiting to hear. >> what was the messaging when it came to the fed minutes here in the u.s.? >> they are trying to figure out what to do. and they all went to their meeting on may 2 and third with

this debate of how could they hike rates again? they have been hiking a lot, inflation has been high but it has been coming down a lot. and we were still in the middle of the eye of the storm getting passed a little with the regional bank problems, so they didn't. they went ahead and hiked and now what we find out is yes they hiked but looking ahead one of the areas of some important discussion and disagreement was around what they do next. several participants, more than half say if the economy evolves how it is going to, then further policy tightening may not be necessary. in other words if the economy, if the job market cools off, if inflation falls more, some participants, less than half say if it is -- takes a while to get back to 2% then the progress could be unexpectedly slow and further affirming could be warranted. they are into this meeting still looking at the data, there has been a lot on data dependency, about how the fed has always

been data-dependent. they have got to have all the insurance they can get for the very last minute of what they are going to do and if it is the right thing. >> kathleen hays with our top central-bank stories today. you can get a round up of all of these stories that you need to know to get your day going in today's edition of daybreak, bloomberg subscribers go to dayb also available in mobile and the bloomberg anywhere app. you can customize your settings so you only get the news and industries and assets that you care about. this is bloomberg. ♪

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for some of these companies, you can see u.s. futures holding study this -- despite the fact that fitch just placed the u.s. on rating watch negative and really that ship story setting those futures higher. plenty more to come, this is bloomberg. ♪ ♪ ♪ every day, businesses everywhere are asking. is it possible? with comcast business...it is. is it possible to help keep our online platform safe from cyberthreats? so we can better protect our customer data? absolutely. can we provide health care virtually anywhere? we can help with that. is it possible to use predictive monitoring

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headlines.

house speaker kevin mccarthy has expressed optimism on stricken a deal to avert a debt default. he says they have time to strike an agreement and they can get it done. his comments came after a meeting between himself and president biden. janet yellen has warned that the united states could run out of money to pay bills as early as june 1. the australian government is asking police to consider a criminal investigation into the pwc scandal involving the use of confidential government to shop tax planning advice to clients. the ceo step down earlier this month.

a court has annulled a lower court's decision to release former crypto mogul doak juan on bail. earlier this month, both were released on bail. the pair will now remain in jail. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. >> the chinese benchmark is lagging behind indices in japan, south korea and taiwan. let's get more from our markets correspondent in hong kong.

has the reopening fizzled out before we can get into the next phase of recovery? >> it really has. it has really been a dark mood toward china's economy in recent weeks. we are seeing in commodity prices, they are toppling, copper really taking a hit. it underscores how negative investors are toward the reopening story. the consumption boom everybody was expecting, we did not get that. there are structural weaknesses in china's economy that people had not priced into the reopening trade. also, there are debt issues. the you juan is weakening.

everywhere you look there is evidence of increasing bearishness towards china's economy. the market did rally from october when rumors of covid zero policy being scrapped were first circulating in the market. we have given up about half of those gains. and foreigners are selling onshore stocks as well. shery: does that mean the government might step in and will that help investor sentiment? >> that should be the next step ause when you do have negativity toward the economy market sometimes take that positively. the problem with china is that we are in a confidence trap where confidence is weak. the economy is now weak enough

for policymakers to step in. the pboc's latest rate decision shows they are sticking to eight cautious approach when it comes to stimulus. -- two a cautious approach when it comes to stimulus. it shows what is the catalyst for markets because the economy is not movement, there is concerns about debt repayments and the path going forward when it comes to that. and the pboc is unlikely to ease . so really how will the pboc deal with economic weakness while maintaining a cautious stimulus stance? bat is the key question in markets right now. investors are choosing to sell rather than hold onto their positions. shery: let's turn to one

specific chinese company, the streaming platform iqiyi. the ceo spoke exclusively to bloomberg about the platforms prospects. >> we have discussed this issue about board members and main shareholders. we agree that list in the stock market hong kong is in the interest of the shareholders as well as the company. we are seriously studying technical details of liston in hong kong. >> 8 billion u.s. dollars was the revenue in the first quarter. what is your target for the full year? >> from an operations standpoint, we hope our revenue this year will have double digit growth rates.

wall street forecasts say 32-33,000,000,000 yuan. is your priority now is a business market share? or profitability? >> certainly come up profitability is the number one priority but that does not mean giving up market share. our goal is high-quality quality growth, meaning profit a bit overly growth -- meaning profitability growth. >> what are your priorities this year? >> we divide content into four categories. we do not want a and b.

>> ahec is what you mentioned. his helping as far as costs are concerned or is it helping you generate revenue? what do you see over the next years? >> good question because the first thing many people wonder is whether some people's jobs will be replaced. it is hard to say because technology changes too rapidly, but in the next 3-5 years it is a smart tool. screenwriters can use the tool to write better scripts and cameramen can use it to get better results. >> do you think in terms of competition, long video companies like yourself, tencent video, do they remain separate

or will you start competing for the same advertiser, for the same view were -- a viewer? >> broadly speaking, there is competition. we feel the pressure from short video. the view time of short videos grew rapidly. in 2017, we grew very slowly and then we declined in 2019. there were two reasons for the decline. one is the rapid growth of short videos that took away some customers' view time. the other as they are change in the business model. now we are finding the best business model for us, which is supported by advertising. >> you see both sectors growing at the same time and not

necessarily eating on each other's future. >> there is a certain degree of competition. this is just broadly speaking. if i inhale more air, i might get less air. this kind of impact is not huge. haidi: let's get you back to the markets. >> we heard that china's answer to netflix, talking about ai. it is the big focus in the session as we get underway, we are 40 minutes into the session right now.

the question is whether these numbers will be enough to override the negative news we have been hearing throughout the session. you can see the nikkei has turned positive after opening in lower territory. the kospi a little bit weaker in the session. these major markets are seeing elevated trading activity. we are looking weaker across the board though. with korea, we are expecting the rate decision in the next 20 minutes or so. we are also watching the dollar strength that is coming through. investors away in a solution to

the impasse that has been lending strength back into the greenback. commodities under pressure in the early moments of trade. it is looking weaker, seasonality factors playing into it. the csi three ready race and all of the losses for the year. -- the csi three erasing all of the losses for the year.

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in focus as they are such release first quarter gdp. you have been looking at the data. do -- to what extent has the industry recovered? david: it depends what metric you are looking at. where almost fully through when

you look at things like visitor numbers. as far as the market goes, we are coming off highs, but still high from the reopening trade. bitcoin is a function of appetite when we came back. it is an interesting time to be having this conversation. when you look at visitors, we are about 85% of the weight.

when you look at gaming intake, the monthly release that comes out, we are about 65% of the way. we clocked in about 415. where it matters the most is earnings expectations. when you look at ford's eps come out for example, -- ford's eps, for example, that is different from the heyday back in 2013, 2014. back then, macau was 10 times

the size of vegas. it is still bigger now, but we are nowhere near the peak. haidi: david ingles with one angle of the recovery story. we will be hearing from sands china ceo on friday on bloomberg tv. let's get a quick check of business flash headlines. nvidia shares are soaring after ai fueled forecast shadows expectations. revenue in the first quarter also be estimates by the widest margins in five years. bill ackerman says research has outed the way icon runs his

companies. i hindenburg search report argued that icon's was significantly over valued relative to its underlying holdings. they did not allege wrongdoing. we await that bank of korea policy decision. this is bloomberg. ♪

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bank of korea rate decision which is expected any moment now. it comes at what feels like a turning point for a number of these global central banks. there is a sense that the fight against inflation perhaps not over a starting to show the fruits of the efforts of monetary policy. consumer spending is coming off the boil a little bit. we are getting the decision now. shery: we are getting bank of

korea decision as expected. leaving the key interest rate unchanged at 3.5%. this is as expected by all 17 economists surveyed by bloomberg. this would be the third consecutive month the rate has not changed. core inflation still remaining elevated for the bank of korea. let's bring in kathleen hayz for a breakdown of this decision. it was pretty much as we were expecting. >> the bank of korea, but third time they have done this. they were one of the most aggressive rate hikers in the beginning. they were one of the first to signal a pause. at first it was a question of how fast inflation would come down and inflation is still above target, but it is well off the peaks.

we see more progress in korea's inflation with the headline number down to 3.6%. the core remains at 4.6% year-over-year. that is one of the things that gives them a green light to pause. there is a worry about global recession, the united states might have into recession. we are watching europe, the sense that this could spread. china's recovery has been less stellar than we were expecting. china is a big exporting nation so the concern is that these are the kinds of things that will way down on the economy. they can well afford to take another pause to see if they have done enough. haidi: to your point when it comes to inflation expectations,

the do not seem to drop markedly until 2024. the same expectation they had in february. this year, growth coming down to 1.4% from 1.6%. 2024 a little bit softer than the february production. we have seen the weakness when it comes to shipments on the export side of things which is so crucial to korea. >> you are making me think of november 2022 when i was in seoul and one of the big question that everybody wanted to know was in korea, once the central bank pauses, people say,

when are you going to cut rates? that many months ago, they said when we stopped raising rates, we will keep them at that level for a long period of time. the kind of numbers you just suggested they are looking for supports that view. your forecast is inflation will come down further as well. after all these rate hikes, why wouldn't it? it all seems to be coming together. a clear signal bay think rates have peaked. countries like korea and new zealand which were out front on these moves, are they out front now for many other countries in the world that are still trying to figure out how much more they

have to hike, even the federal reserve, they are probably redder -- ready to hike again. if this the same kind of path we will see for other central banks? haidi: kathleen hays there. but third consecutive meeting where they hold the rate. it feeds into this global inflation stickiness. this is what we are seeing across the reaction in markets. the one is holding on losses.

the nikkei resuming gains after a few days of profit-taking. the kospi pretty close to bull market territory as well as we processed some of the guidance mostly for 2022 for the bank of korea. not a massive surprise for markets. lots more to come. this is bloomberg. ♪

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