shery: you are watching daybreak: asia, live from new york, sydney and hong kong. anabelle: we're counting down to asia's major market opens. paul: asian stocks said to track a wall street rally fueled by big tech with a focus turning on fridays u.s. jobs report. bids grow after a pause from the fed, harker doubling down on his call for policymakers to skip a rate hike. goldman sachs -- ha -- flagging a drop as it has concerns over new drug cut. getting breaking news. new data from south korea. nothing really here to spill your coffee at all, coming in as expected, we have gdp for the first quarter, but stronger than anticipated, .9% growth there. cpi numbers, as well for the month of may coming inline with

expectations on month, a growth of .3%. on your, weaker than anticipated, 3.3% cpi growth for me. tho -- for me. those figures out of south korea coming in line. anabelle: another reason that the bok may decide to keep its key rate on hold at 3.5%. in terms of the border -- broader asia outlook, there is one key from china where focusing on. it shows markets focusing. odds for a june hike have dropped while an increase for july over the past month. as the newly were lewd -- newly renewed dovish pivot from the fed after the upcoming meeting. we've seen the general unwinding of dollar positions. again, that does have ramifications for asian assets. if you change on now, the most notable ones is in the aussie dollar. we're seeing it move ahead to 66

cents against the greenback, it is a commodity linked currency. also the japanese yen. we are pulling back from the 140 level we hit last week. for equities, dollar weakness can be something that is broadly supportive. this, taking a look at the open, ahead of japan in the next hour. we are looking flat. futures had been indicating for gains as they are for much of the region. new zealand, looking very subdued in early trading. the other thing where focusing on, it is not all about the fed, there is the renewed frenzy we are seeing in ai linked stocks. shery: the tech rally is resuming today. we saw the s&p 500 rallying above the 4200 level. u.s. futures extending those gains. it was nvidia that led the nasdaq 100 higher. retail trailers jumped into the smaller names like marvel technologies and sending stocks higher today. we also had the fact that yields

were down across the board. we're ahead of that jobs report coming out on friday and the expectation is the fed will need to pause in june. that also helped the tech rally, even more. that upsetting the risk on sentiment, upsetting the fact that u.s. inventories of crude gained ground. they rose again. that really did not help. but we still had crude above the $70 -- $70 a barrel level. the fact that we had the factory numbers as well. the factory gauge is shrinking for a seventh consecutive month in may. the expectation that the fed will not be able to move this month, really led to the risk on sentiment speculation, perhaps that we may see a bit of a more dovish fed. our next guest is focusing on this run-up in ai stocks. according to her, it's overextended, investors need to be ready for a tough second half

of the year. erin gibbs is see -- cio at mainstreet asset management. it doesn't help in the second half that we're starting with june, historically the second worst month after september. >> yes. there is some of that potential june gloom we could face, particularly if we don't get the pause from the fed. there are a couple of reasons i am concerned about the stock market. i know this has been talked about a lot. a lot of the depreciation we have seen in the broader embassies has come from a few stocks, particularly the ai and some of the very make a cap stocks. when you don't have that breath or that large participation that ultimately means there is some underlying weakness. not all stocks are going well. we're seeing revisions and earnings forecast for the second half of the year. we're riep for some type of pullback -- ripe for some type

of pullback. any of these high betas, if anything disappoints, we know these retail investors act emotionally, or produce big swings, big data, that could pull the stoxx back, and ultimately pull the index back. a little cautiousness, a little hesitancy, as we get a clear idea of how the fed will act, and what we may seen the second half. shery: that has been difficult to gauge. the uncertainty over the fed, now that we are not talking about a pause, but a skip. what that really means, when the data seems to be conflicting. >> right. we're getting the cpi coming down, it has been coming down for the past nine months. we're starting the month, the money supply, that is a big factor, when looking at inflation. then we still have this record unemployment levels, where everybody has a job. obviously, that can continue to persist, give persistent

inflation if we see those wage increases. it's going to be really down to the wire. i know the fed likes to say they don't really use the cpi. the cpi for may comes out in the first day of their meetings. ultimately, they are probably going to look at that. so, whether the next jobs report comes out, and what we seen in the next couple of weeks, it may be down to the first day of the meeting. paul: we still have a very inverted yield curve. it has been saying recession for some time. what is your view on if and when it happens and how deep it may be? >> so, i do believe, yeah, absolutely, a strong possibility. even with the strong inflationary environment or unemployment environment, i think we could see it looking at profitability and gdp growth. and ultimately, just the impacts, the higher interest

rates could have on the real estate market and how that may trickle into other industries. i think we are looking at of a more of a fourth-quarter event. it will not immediately happen in the third. a recession means we need to have two consecutive quarters. it will be something likely that we see it kick in and the first half of 2024. i -- when looking at investments, i do want to be very aware of recession risks, but also being aware that the u.s. stock market tends to bottom out early in the recession period. it tends to be very forward-looking. we might see an early bottom in the market before we even -- before the recession is over. paul: we are running a story on bloomberg today about bankruptcies rising in the u.s.. is this something you are watching? >> absolutely. the ability to get loans. one of the factors i look at,

when selecting stocks is free cash flow yield and the ability to generate profits, so companies that have really strong cash flows, they don't necessarily have to go to the debt world. they are able to pay off their debt payments, raise dividends. that is one of those qualities i look at, particularly when we are looking at a tiny credit cycle. and any potential for a recession. shery: do you go overseas, given that there was so much expectation of the china reopening, that seems to be faltering? >> i was more heavily invested in europe, earlier in the year that because of the china faltering lesson hopes on the reopening in trade, tourism, that has been a pullback. we're looking at reduced opportunities within europe. so, right now, i still have a large amount in cash, just because there are so many risks.

certainly, it is looking less attractive. shery: i don't think you're the only one. erin gibbs joining us in the new york studio, senior partner and cio at mainstreet asset management. let's get the vonnie quinn >> thank you. the philadelphia federal president says the central bank should a skip raising rates. he told the virtual gathering that the fed should not be reacting meeting by meeting. he emphasized that incoming data will determine whether tightening is needed. >> i do believe that we are close to the point where we could hold rates in place and let monetary policy do its work, to bring inflation back to the target in a timely manner. along this path i projected we will see modest growth, with real gdp coming in a bit below 1%. >> shanghai's communist party chief is asking elon musk to expand his business and the city where tesla runs a large factory. the request came during the ceos

trip to china. along with a midnight appearance at the shanghai factory, musk met with e-business officials including finance and foreign ministers. a republican senators calling on the department of justice to investigate whether the tiktok ceo made false statements to congress about its data privacy practices. marco rubio highlighted a recent forbes report, that gave tiktok's financial information from users to china. the white house as president biden was not injured when he fell on stage after delivering remarks at the air force academy commencement. the 80-year-old tripped on the sandbag after having a diploma to the last of the 900 cadets to cross the stage. the nations oldest president, biden has faced questions about his health and fitness as he embarks on a second run for office. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more

than 120 countries around the world. i'm vonnie quinn. this is bloomberg. paul: still to come, linkedin's first female country had says skill-based holes are a key to gender equality and how lincoln is using ai to skill workers. goldman sachs warns investors about a sharp slowdown in trading revenue as it prepares new layoffs. a closer look at the u.s. banking environment, coming up. this is bloomberg. ♪

paul: former new yorker fed president william dudley says the fed will hit pause or skip in june. bloomberg opinion columnist told us what he expects one or two more hikes later on this year. >> they're going to take a pause because they believe the monetary policy, they want to see the effects of prior actions. but they have characterized it as a skip, because they think they will probably have to do a bit more, and we will probably see that in the summary of economic projections. a pricey, one or two additional rate hikes penciled in for 2023. the economy has not slowed much. if you look at the atlanta fed, to the gdp forecast for the second quarter, it is 1.9%.

as we were talking about, the labor market still seem strongt. . fed has not accomplished much. >> bullard of st. louis uses his economics to say we can do this exercise and avoid some form of ner recession, do you agree? >> i think it is hard to avoid a recession if you believe the fed has not push the unemployment rate by a meaningful amount. if you look at their forecast, they think rates will have to rise by one percentage point. every time it has written -- risen by one, since world war ii we have had a recession. i'm betting against soft landing this time as well. >> the implication here that the fed is not accomplished much and they should go further with respect to hiking rates, perhaps a pause or skipping, is perhaps not the right approach, what's the consequence to that? do you expect this to accelerate inflation or keep it higher for longer in a way that people are not expecting?

>> it does not matter if they hike in june, versus july, as long as they keep financial -- from easing. that is why they are using the language of skip rather than pause. we don't want the markets to think that they are finished. they don't want the stock market to rally a lot. if that would happen, that would make monetary policy more stimulative. it would be counterproductive to what they are trying to accomplish which is to cool off the labor market. >> the data has been confusing. we've been talking about that all day, whether it is earning or the macroeconomic inputs. what are you looking at, to highlight that there is a lot of strife that the lag effects are not going to take care of? >> the labor market is the key, to focus on what is happening to payroll unemployment growth, the tightness of the labor market. the jobs report yesterday showed an increase of unfilled jobs relative to unemployed workers, back down to 1.8 unfilled jobs. chair powell has said that rate

should be down around 121. what's happening to wages. powell in the last press conference thinks that wage inflation needs to be 3% not 4% to 6%, to be consistent with 2% inflation. the labor market and wages are going to be the key drivers for the fed feeling more comfortable that they are on attracted to percent. shery: the former new york fed president, bill dudley. we're singh traders pricing in a fed pause. we saw u.s. stocks gained ground in the new york session with the s&p 500 above the key 4200 level. yields were down. that helped tech giants rally again. retail traders jumping in on the ai hype. it's really all about what the fed does, especially given that we have the friday's jobs numbers. the expectation right now for a slowdown and the pace of hiring, as we are seeing tracks emerging, beneath that strong

headline, payroll figures. goldman sachs, perhaps, may be aiding in the softer outlook for the labor market, warning investors of a sharp downturn in its investment bank, from the bumper gains of a year ago. su keenan joins us now. su, we are expecting perhaps another round of job cuts? su: goldman sachs, ceo, really hunkering down after a banner year of profits. and really warning that there is going to be a downturn in trading revenue. and a slowdown in the face of "an extraordinarily challenging economic bankrupt was quote. the business trading down more than 25% compared to a year ago. he also described capital market activity as sluggish, though there were some signs of strain in the equity capital markets. what is interesting is the way the stock reacted. it was down as much as 3%. the fact that they are seeing a downturn and reported that the

investment bank is sluggish, appeared to be a bit of concern. they are also saying that there big trading partners, their clients are exhibiting, risk off behavior. on the other side of the ledger, the company's ceos are showing caution. you put those two key parties together and analysts say that is going to have an impact on how goldman performs. as mentioned, goldman is working on what would be its third round of job cuts in under a year. the bloomberg report earlier this week, the firm eliminated hundreds of jobs in september followed by 3200 cuts at the start of this year. bloomberg is reporting the moves this time are expected to affect a lot less people, maybe 250 according to those close to the matter, who also say this round of cuts would perhaps impact more senior execs at the firm. paul: so, it is a slightly different story for bank of

america. it seems to be faring better than its rivals. su: it is important to remember bank of america did not have the big windfall that it's bigger rivals had. they are likely to have a second quarter more in line with the one a year ago. they're projecting a flag is quarter, a much more promising outlook than rivals. let's take a listen. >> there is a lot of activity. the question of results in deals. on the sales trading side, frankly, i think we will be flat this quarter. jimmy tomorrow and the team have done a great job of stabilizing. su: its ceo, what he is saying is june is typically stronger than may. year-over-year, they are relatively flat, that is a relatively strong performance compared to rivals, such as goldman. wednesday we heard from morgan stanley's copresident, who also gave a gloomy forecast for his bank sale and trading a dealmaking operations, saying the sales are softer this

quarter and results will be down year-over-year, echoing the views of goldman that investment banking is "very challenged". shery: su keenan the latest on wall street. you can get a roundup of all the stories you need to know to get your day going in today's edition of daybreak. terminal subscribers go to dayb . you can customize your settings so you only get the news on the industries and assets that you care about. this is bloomberg. ♪ you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you?

i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

shery: we have breaking news at the moment. we are getting the latest on the debt limit deal in washington. now, senator schumer, the majority leader, speaking on the

senate floor, saying that he has an agreement to vote on the debt deal tonight. of course, the deal had cleared the house of representatives. we're waiting for a plan to be considered in the senate. the two parties had met today to discuss the consideration of the debt deal, agreed between president biden and kevin mccarthy. we are hearing from the majority leader, chuck schumer that speaking on the senate floor right now, that he will be seeking votes on the deal starting tonight, and that they do in fact have an agreement to vote on the bill, on the legislation tonight. he's seeking consent on some of the amendments on the debt bill. now, u.s. futures still trading higher at the moment, as we've been awaiting any more clarity on how fast this could pass congress, head of the -- ahead

of the date june 5. paul: it is nearly over. bloomberg has learned that apple is working on plans to expand and revitalize its retail chain. the company plans to push deeper into china and india, while overhauling established locations in the u.s. and europe. our reporter broke the story and joins us now with more details. mike tell us a bit more about this plan. >> apple has these ambitious plans to expand the retail base in existing regions, but also into new areas, the growth markets, there are talks about several new stores in asia, including new stores in key areas in china. new stores in japan. new stores in korea, relocated stores in australia. also another big one, three new stores later in the decade in india. a big market for them into the future.

these are quite ambitious plans and quite abated -- quite a big expansion for apple in asia. shery: we have seen the renewed interest in india, in markets like south korea, where its biggest rival, samsung is there as well. how difficult will it be for apple to make more headway in the markets? >> apple has the goods to given south korea. samsung is pivoting to foldable's and other areas. there is a bit of a window for apple to crack in and win premium market share in korea. apple is making a bit of a strategic mistake in india. they are refusing to lower their prices to me to the indian consumer. there waiting for the consumer to grow in the emergence of the apple category, the apple pricing structure. at some point, if apple wants to develop a big foothold in india, they will need to meet the consumer in the meeting -- middle. shery: joining us from los

angeles with his exclusive story on apple. we take you capitol hill. we've just heard from senator chuck schumer, the majority leader, was speaking on the senate floor, saying he has an agreement to vote on the debt deal tonight. we had seen that past -- past the house. we're expecting a vote in the senate to be cleared, so this can go to president biden's desk and be signed into law to avert the default on june 5, which would be the x date the secretary yellen has set when the treasury runs out of cash. the fiscal responsibility act will suspend the borrowing ceiling until 2025 and cap federal spending. this is bloomberg. ♪ when i was his age, we had to be inside to watch live sports. but with xfinity, we get the fastest mobile service and can stream down the street or around the block. hey, can you be less sister, more car? all right, let's get this over with. switch to xfinity mobile and get the best price

for 2 lines of unlimited. just $30 a line per month. i should get paid more for this. you get paid when you win. from xfinity. home of the 10g network.

>> the united states does not seek conflict or competition with china.

china and the u.s. should be able to work together where they can, solve some global challenges like climate. but we are prepared for the biggest competition. we will stand up for our interests, our friends, and for our values. paul: president biden speaking about u.s./china tensions. elon musk has ended his world when visit, with the midnight visit to his shanghai factory and a plea from the city's top party officials to have more tesla investment in china's financial capital. for more on this let's bring in our chief north asia correspondent, stephen engle. the courting between china and the top of the western business leaders continues. stephen: absolutely. you can draw -- you can extrapolate and say that the business-to-business ties could possibly get some more traction than the government to government and military to military ties, which are going

nowhere, with increased rhetoric on both sides, towards each other. a business leader, some of the richest and most influential ones in the world are either in china, have been in china, or are going to chinain these recent weeks. we had the exclusive interview with jamie dimon a couple of days ago, as he has hosted his first global china summit since 2019 in person, summit amy add. elon musk, now the world's richest man as of this week is just wrapping up his tour. his flight has already left shanghai yesterday. he did have the midnight tour of his factory. you are seeing some of the footage. he met 100 employees, who stayed late, the burn midnight oil in shanghai. he said it warms my heart to see your work. he also saw the production line of the new model three. he did meet with many top chinese officials.

while government officials from washington have not been able to meet face-to-face, people like elon musk, he opens doors. the shanghai party boss says he welcomes elon musk to come to the city and invest more. in fact, it contributed, tesla contributed about a quarter of shanghai's automotive production last year. shanghai is and the surrounding areas are a major, if not a top automobile eking -- making region of china. tesla is making strides there. they broke ground in 2019 and started producing a couple of years later. the party boss is essentially saying come build more factories, build out shanghai, as the commercial center of shanghai. jamie dimon, he also met with chen, the party boss in shanghai. chen also made the same plea. jp morgan, please help bring

more international financial institutions to shanghai. while government ties seem to be cool, business cooperation seems to be picking up, as the chinese economy is sputtering, following that optimism was on the first quarter. because the dismantlement of covid zero. shery: we heard nvidia's founder is going. who is next? stephen: another one of the top billionaires in the world, who just lost his title as the world's richest man to elon musk this week, it's paper numbers. again, we are talking about arnault. he is the lvmh billionaire ceo. he is planning a visit to china this month. the consumer is key to the big luxury brands. the consumer is reluctant to spend right now. it's world's biggest luxury market. per capita, the chinese spend as much as anyone else when they travel.

but they are not traveling abroad as much. they are cautious. we have seen the rally and luxury brands. the french and italians, europeans, they essentially fade a bit. they were doing very well in the first quarter on optimism. now that covid zero has been dismantled, the chinese would begin their shopping spree of luxury brands but it has petered out. we can ring up the chart. gucci owner and some of the other ones, including air mez, their rally has faded a bit since the beginning of april. on the numbers we have been getting all week, this week, including those pmi's, the chinese economy, the economic recovery is sputtering. that's key. it does not surprise me that mr. arnault would be making a trip to china to shore up and get an on the ground feel of what the consumers like in his most important market. shery: bloomberg's chief north asia correspondent there with

all of the high-profile visits to china. let's get the vonnie quinn. >> thank you. taiwan and the u.s. have signed the first part of a trade agreement that faces opposition from beijing. taiwan's president says in a statement that the agreement is a crucial step towards an expected free-trade agreement between the island of the u.s. it is the first action, finished, last year that beijing says violates the one china principle. the pentagon has inked a deal with elon musk and spacex to retain starling services in ukraine. it did not disclose a value to the contract that is satellite communications terminals. the u.s. has praise the role that starling terminals have laid -- played in ukraine, seeing them as vital for key civilians and military. brixon nations have asked the blocks, the specifically created bank, for guidance on how a new shared currency may work. this includes how it could shield member countries from the

impact of sanctions. the block convened earlier to challenge the u.s., but it reached firm conclusions. the useful currencies were among the talking points. senators are scrambling to agree on a plan that would see the u.s. debt limit deal pass before june 5, to defaulted line. lawmakers have been meeting to discuss which amendments could be considered and how to pacify hawkish republicans. two republicans have threatened to tie up the senate floor if their demands are not met, which could push a vote past the deadline. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries around the world. i'm vonnie quinn. this is bloomberg. shery: top fed official is now repeating his call for a pause on rate hikes. will the u.s. jobs report changes mind? our global economics and policy editor, kathleen hays. is here with the latest. we heard from the philadelphia fed president. kathleen: he said the same thing

that the new almost vice chair, fed governor for jefferson -- governor jefferson said yesterday. the fed has done a lot. it is time to sit back and see the impact. that is what they want to see happening at the june meeting. you can call it a pause, a skip, they agreed that is what is time to do. let's listen to what harker said earlier. well, i will tell you myself. basically he said it's something that is needed now. you don't want to do too much. let's bring up that chart on the jobs forecast. bill dudley who was a former head of the new york fed bank thinks that there go hug -- going to have to do one or two more hikes. he thinks wages will be very important, the number of jobs important, payrolls is expected to be at 195,000 -- 195,000.

keep your fingers crossed on that one. unemployment up to 3.5%. still at a 50 year low. average hourly earnings, year-over-year, expected to be at 4.4% in may, again for the second report in a row. that is well above, if you look at pre-pandemic what it used to run, even if it is down to 4.4%. the cpi has gone from 9.9% to 4.9%, everyone is suggesting there is a lot of pressure on inflation. of course bloomberg economics thinks bloomberg -- we will not see anything but a pause. jay powell is watching wages closely, but he thinks the downside risk are what have to be weighed. paul: kathleen, we have a story out from bloomberg that says economists are seeing a bigger chance of the bank of japan policy change in the near term than investors. it's a bit of a reversal from last year. what is driving this?

kathleen: it is an interesting story out from our bloomberg news team in tokyo. it's kind of a reversal. at the end of last year, investors were saying, they are going to have to move. maybe governor kuroda is going to do something more than that december tweak, even before the new governor would have his first meeting in april. now, it's economists were looking more for the near term rate hike. in april, our latest survey was two thirds. some people have changed their minds. , they back to thinking maybe at the end of the year, something then. although goldman is among those along with bnp parabas, saying they may do a tweak in june. just about everything, every number is above the 2% target. 3.4% if you look at one of the main gauges. at this point, what is expected is perhaps a shift up in the

inflation forecast, given how far apart the target is from the boj's forecast from 1.8% this year. a 35 year veteran at the boj for 35 years, he says he thinks that they are going to have to move the forecast. let's listen. >> the boj inflation excluded prices for fiscal 20 23, but actually by my calculation by any reasonable assumption, for fiscal 23, at current prices we would be above 3%. the boj has to be up. for fiscal 23. kathleen: an increase the inflation forecast it could be one of the first steps of moving and shifting away from all the stimulus. for now, investors are not

buying it. they are listening to what the new governor has said. he's been dovish. he sees an extremely high cost for removing stimulus prematurely. the boj made that mistake in 2000 when he was on the board. he does not want to make it again. they are hearing the dovish governor, a lot of economists are looking at the strong above target inflation. paul: kathleen hays there. let's get a check of how we are tracking in terms of markets. 20 minutes away from the open. south korea and japan and australia as well. anabelle: focusing in on the outlook for some central banks. we had a couple of different headlines across the terminal. you broke those korean numbers when they brought -- dropped in 8:00 a.m. local time. this chart has a recap. we have been looking at different factors. first, the headline reading, you can see the drop to 3.3%. some could say perhaps that

gives the bok reason to continue with his pausing for now. our bloomberg intelligence team are focused more on the core reading in particular, when he strip out food, energy. we saw slight reduction but it is still sticky, still elevated enough for the bok to keep the door open to another hike. perhaps they are likely to stay a bit hawkish. we did get the decision last week. they decided to keep rates on hold at 3.5%. let's take a look at another central bank we are focusing in on. this is australia's rba. we just had a line crossing from anz. they lifted the key rate to top out at 4.35%, up from 4.1%. it does certainly reflect what we are seeing in money markets. most traders are now fully pricing in at 25 basis point hikes by august. it follows inflation data we had out of australia. the monthly reading, showing a

gain of nearly 7% over the course of april. we had corelogic posting those house prices, gaining in the bellwether, cindy, up 1.8% over may. in terms of the market reaction, we are flat. the aussie dollar is very close to the 66 sent level. a lot of this moves in the bond space as well, more down to what we are tracking from the fed and the expectation that we will see the pause at the next meeting. shery: right. coming up, our exclusive conversation with linkedin, japan's first female head her plans to tackle japan's gender inequality coming up next. this is bloomberg. ♪

when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh

shery: linkedin japan's first female head is shifting to a more skills-based labor market to address the gender inequality. wakana tanaka spoke exclusively to bloomberg in her first meeting interview since taking over the top job in april. >> my personal mission is to work towards elevating women's status in japan and asia. i also think the value of the company is so important.

linkedin's value is based on respect and trust. it made me realize that being able to work professionally and also be happy mom. where can i contribute the most? japan being the third largest economy is an important market for linkedin as well. the prime minister just announced a labor market reform based on two things, reskilling and talon mobility, both of which linkedin japan and help a lot. we'd really love to respond to the needs of japanese companies and professionals, both on hiring and learning reskilling as well. >> i want to talk to one of the hottest topics across industries, artificial intelligence. it's no surprise that linkedin, a microsoft owned company is focusing its efforts on generative ai. at linkedin you have new features, where you get recruiter messengers, better job

restrictions -- descriptions, using this technology. how do you think ai will change the way we find a job? >> we are incorporated -- incorporated machine learning for linkedin learning online courses. among 20,000 courses globally, now 10,000 are available in japanese, which is the biggest library for company providers in japan. we are proud and excited about this feature. also, the chatgpt we have incorporated chatgpt to help companies write the job descriptions and help the users polish their profiles and write messages to hiring teams. it's becoming very helpful for more users. >> at last check, linkedin has 900 million members worldwide. japan, at the moment, accounts for 3 million of that. obviously you have a lot of

competitors in the space domestically, facebook, for networking, even recruit, the giant, how will you compete against that? >> many japanese companies used to have lifetime employment. with the kishida government's push for the labor market reform, companies are shifting towards job based skills, skill-based hiring and reskilling focus, both of which, linkedin japan, we are very proud to support that. so, i think that gives us a big strength. >> japan consistently ranks at the bottom when we talk about the world economic forum, gender global. gap report. in 2022, japan ranked out of 146 companies, the lowest out of g7 countries. what is the thing japan needs to do to close the gender gap? >> there is no longer a

one-size-fits-all policy for workplaces. many people, we just did research last month on japanese people. compared to 20 years ago, across generations, people value families the most. not work. 20 years ago it used to be work. the people's mindset have shifted. companies need to adapt to their employees values. they need to provide more flexible ways of working. paul: linkedin japan's first female country had, wakana tanaka speaking exclusively to bloomberg. you can watch this live and see our past interviews on our interactive function at tv . you can dive into any of the securities or functions we talk about and you can become part of the conversation as well, by sending us instant messages during our shows. this is for bloomberg

subscribers only. you can check it out at tv . this is bloomberg. ♪

the first time your sales reached 100k with godaddy was also the first time your profits left you speechless. at the counter or on the go, save 20% with the lowest transaction fees and keep more of what you make. start saving today at godaddy.com paul: peloton's ceo says new ai developments are so powerful he is not sure they should be offered to some customers. alice carr spoke to bloomberg about the demand. >> unlike most people we have been involved in what people

call ai for the last five or six years, building systems that will allow you to identify adversarial positions. in that context we built prior terry technology that will allow you to work with -- proprietary technology that will allow you to work with business models. i have been at this for 25 years. it will take people for five years to build this. our customer base is large. usually we wait -- we have to go out and find people. now we have customers calling us every day. >> he said demand is huge. can you quantify it? >> again, we have had a number of inbound calls in a year and in a month. if you are at a conference, if you go next-door, there are customers showing -- potential customers how to use our product. it's on real data. it's things that they have done. so, right now, the whole world

is hungry for something that it understands as ai, which is ai or large language models. we actually have customers using our products, showing other customers how to do it. this is like you release a song an everyoned is playing it. great, where very happy. the thing is, the u.s. market is just hungry for innovation. it is hungry for things it is now beginning -- it is now beginning to understand it needs to map on an enterprise securely, enhance the output of a language model. what is the output, better margins, better safety. you can change your enterprise and weeks. >> i want to jump in and ask a basic question, aip, is it built on gpt fall? or a different foundation? >> we are completely agnostic to whatever large language model you want to use. the large lung which models have certain attributes.

they can give you reasoning. you cannot import the reasoning into your enterprise. aip allows you to take the benefits of it and enhance them with algorithms we help you build. what does that mean? it means you get all the benefits of a large language model in your enterprise today, not in five years, not something that writes poetry. we are not offering people poetry writing in their enterprise. we are offering things that are so powerful, in reality i'm not sure we should sell this to some of our clients. >> who are those clients? proportionately, when you think about demand, how much is coming from the defense use case, since you gave more flesh to the ai bones, during that earnings cycle? >> what is driving our demand for our product in defense is what people have seen on the battlefield. that is very sensitive and very classified. the demand for that is large. it will get larger. america is the best that software. software that is built on a product in high demand in

defense. until two years ago everyone thought this was a joke. we were building systems the last five years that are deadly. the deadly systems have changed the course of history. you seen on the battlefield. in u.s. commercial, u.s. commercial industry is the most adaptive in the world. they are hungry for things that will give them a disproportionate advantage on safety, secure use of mlm's. re-creating what somebody said, and making sure it creates tangible difference. we are happy. shery: market opens in sydney. seoul and tokyo our next. this is bloomberg. ♪

shery: this is "daybreak: asia". the u.s. senate has reached a deal to expedite passage late tonight by debt ceiling agreement. fortune by president biden, and kevin mccarthy. this just ahead of friday's jobs report. >> more evidence that the jobs market in the u.s. is very strong, and that ai inspired rally is on as well. let's get to annabelle in hong kong. >> we are looking ahead to the opens now in japan. it is a big focus on the session today on the newly renewed focus on a dovish tilt from fed officials. markets have been really pricing out expectations for a hike in june to july. more officials are arguing a case for.

it is near the point now where officials can stop moving the key rate and focus instead on keeping it steady to further bring down inflation. we had seen moves in guilt overnight, and also in general unwinding in dollar position. that has led to dollar weakness. we are well off that 140 level that we touched a few days ago. we see the nikkei looking to track gains that we had in the wall street session which was down to that call from parker. another factor is the alliance from the senate majority leader chuck schumer that a vote will be held on the debt deal. let's turn now to korea, we had the open, we are seeing it coming online to the upside. we are extremely close to it reaching a market.

we have just touched april market here, that is a bull market for the kosdaq. it is the focus on tech stocks in particular, against the backdrop of falling yields in the u.s. that has a boost in the sector, plus more optimistic -- optimism coming into ai. more company specific news underway. a bloomberg scoop that apple is working to expand its retail chain with a further push into china. watching its biggest suppliers in particular. let's turn to australia because we have the asx 200 getting underway. the focus is going to be down to what economists are saying for the outlook for the rates of rba.

some policymakers are seeing the rba going even further. credit suisse is saying the key rate could top more than 4.6% by september. oil, trading fairly flat this money. traders looking ahead to the opec+ meeting that kicks up over the weekend. we are heading for the biggest weekly loss and about a month. paul: let's bring in our next guest who has raised japanese equities overweight read the nikkei off to another good start. it is too late to join the trade? do you see buying opportunities in japan? daniel: yes, there are opportunities to buy and japan because we are looking at a structural change in the markets. the biggest catalyst is the

improvement in the corporate governance in japan. it is encouraged by the stock change and the manufacturing in the fact that share ibec has been at the highest level for a 12 month. . also the fact there is increasing dialogue between the companies and investors. that is all encouraging. that is the catalyst that can bring japan higher from the long-term chief valuation discount versus global equities. paul: we have a conversation about the bank of japan and the potential for tightening. her from policymakers in japan, concern about the weakness of the yen. we have the yen strengthening right now. how does yen strength in the outlook affect your interpretation of equities?

daniel: the conventional wisdom is that a weaker yen is good for the company earnings because japan is heavily tilted towards the exporters. of course that is what we have been seeing over the last few decades. at that time the japanese stocks were relatively stagnant, but this corporate governance has been an achilles heels in japanese companies. we believe that it can overcome the strengthening yen that can impact earnings. shery: you have closed your preference for china within the region. tell us why. daniel: basically what we are seeing is that the low hanging

fruit in chinese equities that people were seeing immediately after reopening, that is in the background now. the numbers really have to deliver in order to entice investors to be in chinese equities. as you are well aware, recently the economic data has been underperforming expectations. one can argue that there were too much hype in the economic data, in chinese equities, starting from the end of november last year. our in this correction in chinese equities, they tend to overshoot and undershooting more severely than the rest of the global equities. we are in that stage. for the longer-term investors, devaluation is still cheap in chinese equities. there are some interesting

sectors that you can get involved in. people have to be patient. you need to wait for the economic expectations to be lowering, such that the data can start to beat, and governance target stimulants can come into play. you can see an upswing. shery: has the sweet spot for u.s. equities sort of past? given that investors were factoring in a pause this month, what happens after that? daniel: right now the data is still beating expectations. people were expecting the recession to come sooner, rather than later. so far the data has been looking relatively healthy versus expectations.

it is giving the u.s. stocks going. don't forget that there are also investor psychology in both, if you look at the biggest gainers in west stocks, it is pre-much the key stocks in the nasdaq 100. they have worked very well for the past decade for investors. now they are coming back with a vengeance. investors are back in their comfort zone. it is tough to see investors selling out of these stocks that they like for a long time. it is tough to see that. u.s. equities are probably going to do very well for the month of june, still. until the narrative turns, meaning that the expectations in u.s. equities has gone up higher than now, and data starts to fail the beat, you will see the rotation coming out from u.s. equities into equities and the rest of the world. shery: we are hearing from the u.s. congress that senators have

reached the deal to expedite the passage of the debt limit agreement. what happens after the u.s. avoids default? the understanding is that treasury will start to refill its anti-coffers, that means on issuances will rise, but happens to treasury yields gotten of course where the u.s. dollar goes, which eventually affect so many of these emerging markets, including many of them in asia. daniel: right, what we are likely to see is that -- it is lovely to be more caps on spending. which is negative for the u.s. economy in the long term. and also we are likely to see more borrowing in the u.s. treasuries and a shorter and. -- shorter end. what that says is the economy will be slowing.

in the short-term, there is still an upside with u.s. equities. in the long-term, you may see money rotating out of u.s. equities into the rest of the world. shery: let's see how stocks are moving. it is still early in the session. annabelle: we are 10 minutes underway for tokyo, seoul and sydney. softbank, a jump of 6% at the open. what is driving that is a freeze that raised it to buy from hold. this is down to the nvidia story, the sales forecast and guidance when the company lead to a rally across the board for semi related stocks.

it is lovely the market is going to be pricing on as an ai play. a quite big jump from where it was. if you change on now, this is a wave above grade we have seen for softbank this week. three upgrades in the past three weeks or so. we are seeing that stock trading higher over the past five sessions. in terms of the downside limit, any drop in shares would likely trigger a ibec. another group of stocks we are tramping are the apple suppliers. we understand that they are working on plans to expand the regional chain in asia. the tech giant could open 15 new stores across apac, additional

outlets in europe and north america. three sites in india and and outputs in malaysia. shery: let's get to vonnie quinn with the first would headlines. >> senate majority leader chuck schumer says of all on the u.s. debt limit deal will be held in the coming hours. lawmakers seek to pass the bill before a fifth default deadline. two republicans have threatened to tie up the senate floor if their demands are not met. shanghai's communist party chief is asking elon musk to expand his is us in the city. the request came during the ceos trip to china this week. along with the midnight appearance at tesla's facility, musk met with senior officials.

taiwan and the u.s. have signed the first part of a trade agreement that faces strong opposition from beijing. someone's president says the agreement is a crucial step towards and excited free trade agreement between the island and the united states. it is the first concrete action under an initiative and asked year that beijing says filings the one china principle. a report can center is calling on the doj to investigate whether the tiktok ceo made false statements. marco rubio highlighted recent report that claimed tiktok stored personal information of tiktok users. the company is confident in the accuracy of his testament. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. paul: forsyth asia says there cautious stance on china and why they are staying defensive.

philadelphia fed resident says the u.s. central bank is close to the point where it can stop raising interest rates. details shortly. this is bloomberg. ♪ you've been a real rock star. rock star? what do you know about rock stars? billy idol? i mean where's the skin-tight leather? my shoes are leather. where's the unnecessary zippers? that thing! billy, rock star is just how doug feels when he uses workday. thanks, rory. i'll show you rock star! be a finance and hr rock star. workday. for a changing world. billy idol just stole your golf cart! you don't have to worry about things like changing tax rates, exemption certificates or filing returns. avalarahhh ahhh

ahhh ahhh how can you sleep on such a firm setting?

gab, mine is almost the same as yours. ahhh almost... just another word for not as good as mine. save 50% on the sleep number limited edition smart bed. plus, free home delivery when you add an adjustable base. only at sleep number. >> i believe we are close to the point where we can hold rates in place and let monetary policy to its work. along this path, i project that we will seek modest growth this year with real gdp coming in about below 1%. paul: philadelphia fed pushing for the central bank to skip raising rates in june and form -- and former u.s. fed also

expects them to press pause. >> they are going to take a pause because they believe that they want to see effects of prior actions. they have characterize it as a skip because they think they will have to do more. we will probably see that, one or two additional rate hikes before 2023. the economy has not slowed much at all, if you look at the atlanta fed gdp forecast for the second quarter. the labor market seems good. the fed has not published much later. >> we can do this exercise and avoid some form of nver recession. >> it is hard to root -- to

avoid a recession. if you look at the fed's own forecasts, they think the on up limit rate will have to rise by at least one percentage point. i am betting against a soft landing this time. >> the implication that the fed has not accomplish much and they should go further with respect to hiking rates. what is the consequence to that? do you expect it's to accelerate inflation or keep it higher for longer in a way that people are not expecting? >> it is not really matter if they hike in june versus july, as long for keep financial conditions from easing sick of feeling. that is why they are using the language of escape rather than pause. they do not what the stock market to rally. that would make monetary policy

more stimulative, it would be counterproductive. >> the data has been confusing. whether it is earnings or the macroeconomic input that we normally have used. 40 you looking at to highlight that there is a lot of strength -- what are you looking at to highlight that there is a lot of strength? >> the labor market is something to focus on. the report yesterday showed an increase in number of unemployed -- unfilled jobs for every unemployed worker. what is happening to wages, wage inflation needs to be 3%, not 4-6% to be consistent with 2% inflation. labor market and wages will be the key drivers of the fed being more comfortable. shery: former new york fed

president bill dudley. in japan we are seeing a reversal in the trend with a witness last year. economists see a bigger chance of a bank of japan policy change in the near term than investors. we had seen speculators really making the boj's job more difficult. what is driving this change. kathleen: usually we seem to see the markets out in front of a central bank looking for a change, they have full back and now it is the economists, two thirds saw that the oj would start a tightening move in july. some of them have pulled back from that. jp morgan am a -- actually it is goldman who see a move in june.

that the is still out there because of inflation. it is well above the boj 's target. the thinking is, if it gets there, if it looks sustainable, surely the boj will have to start shifting years under its new governor. a former doj assistant governor spoke to us a few days ago. he thinks that the boj, at the next meeting, is going to have to shift its inflation forecast higher than though .8 percent it currently sees for 2023. >> inflation -- physical 2023. in my calculation, inflation for fiscal 2023 will be significantly above 3%. the boj -- kathleen:

kathleen:a shift in the forecast to a higher level. something above 2%. if they look at the 2024 and 2025 forecast, that would be the first step towards the first policy.wards moving for changing markets do not see it that way. the dollar yen exchange rate are well down for the january highs. that suggests traders do not expect any big policy shifts. ever since he took office, he has had a very dovish message. he seems in no hurry to start tweaking policy, he wants to keep wide yield control in place. he called for an 18 month review of the past 25 reviews of -- 25 years of doj policy. that could slow any move.

when he says things like he sees externally high cost, removing stimulus prematurely, he is looking at the past when the boj started removing stimulus to soon, pushed the economy back into recession. i think that it would -- i think that what is happening here is investors are saying the new fed governor is saying he has patience. shery: you can get around a bowl of the stories that you knew to know to get your day going in today's edition of daybreak. bloomberg subscribers, go to dayb go. you can customize your settings so you only get the news on the industries and assets that you care about. this is bloomberg. ♪

shery: goldman is warning investors of a downturn in its investment think from the gains of a year ago. su keenan joins us now with the latest. john waldron sees a 25% drop in trading revenue. >> he sees a contraction ahead. it is a big change from that bumper crop of profits that they enjoyed. he also said that they are bracing for extraordinarily challenging economic backdrop. the minx trading business trading down more than 25% this quarter compared to a year ago he also described capital market activity as sluggish. very interesting to see the reaction of the stock, dropped

as much as 3% before paring some of those losses. that may be due to the fact that the bank is seeing a downturn in the investment banking. they are seeing that as sluggish. also noting a big trading partners, clients are exhibiting risk off behavior. ceos also showing signs of caution. that is going to affect how goldman performance. they are also working on a third round of dropped cuts in under a year. the firm cut out hundreds of jobs in september, followed by about 30-100 jobs at the start of this year. it will be a much smarter -- smaller amount. paul: a slightly different story

from bank of america, faring a bit better than its rivals. su: they are happy that things are stabilizing, they do see him flat quarter. >> there is a lot of activity. on the sales trading side, we will be flat this quarter, they have done at great job of stabilizing the business. su: bank of america did not have the windfall profits of some of its bigger rivals, it is looking much better given the forecast from rivals. bridgett is here. she has no clue that i'm here. she has no clue who's in the helmet. are you ready? -i'm ready! alright.

xfinity rewards creates experiences big and small, and once-in-a-lifetime.

shery: live to capitol hill where u.s. senators have reach a deal to expedite passage tonight

of a debt ceiling agreement. this was forged by president biden and house speaker kevin mccarthy. the june 5 deadline for of potential u.s. default is approaching, that would be the x-date. we are now hearing that there will be a swift passage of the deal by the senate. this would be to pass the fiscal responsibility act, this would suspend the key west borrowing ceiling until 2025, also cap federal spending. there were lots of concerns that we could see lengthy debates and a vote that would be held by one lawmaker holding up proceedings. but it seems that they have been able to reach an agreement for swift passage of the deal. this as we continue to watch how much cash the treasury has left.

we have heard that it has rebounded from a 2017 low, even the administration more re-think room. he continued to watch the u.s. market reaction as well. most investors seem to have moved past what is happening with the debt deal. we saw a big gains in the regular session. os futures have extended those gains. we also saw the rally in tech resume. as retail traders started to ride the ai hype as well and pile onto the smaller names. let's get to the details of what is happening in the u.s. senate and bring in bloomberg's steven dennis in washington. markets have been washing -- watching very closely what is been happening with the debt deal agreement. investors seem to have moved on

from worrying about what was happening here. are they right in being less concerned now that we have this deal reached by senators. guest: we have a deal locked-in to pass the debt deal tonight. they have a vote on 10 amendments, they have finished a vote on one. the amendments would have to fail, then of final vote tonight to clear the bill to the president's desk. so far everything is smooth sailing, it should pass with a fairly large bipartisan margin, just like it did in the house. one thing that just happened on the senate floor is chuck schumer, as part of an agreement, could announce that the senate could bust through the caps if they chose for more dispense -- for more defense spending, spending on china, including issues like taiwan.

it remains to be seen whether congress is going to live by the spending restraints that they are about to approve. paul: you mentioned the amendments. what was the nature of them? >> what these amendments are -- show votes, the people offering them are not expecting them to win and change the bill. which would require the house to come back and pass it again. they are trying to score political points. there were amendments to/call federal spending by 25% over five years to balance the budget. that did not have a whole lot of support. we have other amendments that would try to implement more

spending cuts and more changes to regulatory reforms. those things are almost doomed to fail. there was an effort to strike a mountain valley line in west virginia. that is looking to fill as well. those are among the things we are watching. all of these minutes have to fail for this bill has to go back to the house. hopefully everybody here, they expect everything to fail. passage probably about 10:30, 11:00 p.m. eastern time tonight. shery: we watched u.s. senators passing that debt deal in the coming hours. let's get to vonnie quinn with the first word headlines. >> the philadelphia fed president says the quest central bank should skip raising rates.

he said the fed should not be reacting. he emphasized that incoming data will determine whether additional tightening is needed. >> i do believe that we are close to the point where we can hold rates in place and let monetary policy to its work. along this path i project that we will seek modest growth this year with real gdp coming in a bit below 1%. >> brics nations have asked banks to provide guidance on how a potential shared currency code work. -- code work. it did not reach from conclusion, the use of alternative currencies was among the most volatile talking point. the pentagon has make a deal with elon musk to retain

services in ukraine. the u.s. has praised the role that starling terminals have played in crane. -- have played in ukraine. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. shery: elon musk has ended his whirlwind fidget to china with a midnight visit to his shanghai factory. in a plea from the cities top city officials to have tesla invest more in china's initial capital. >> elon musk packed in a very tight schedule into and a half days. it is: knitting and a late night visit to his shanghai factory. -- it is culminating in a late night as it to his shanghai factory.

that is something because shanghai is a measure manufacturing region for automobiles. saic has had partnerships for years with general motors and volkswagen. tesla is taking a chunk out of that. the party boss is imploring elon musk to invest more to build out more capacity in electric vehicles as well as electric storage. jamie dimon is in shanghai as well. he also met with the party boss in shanghai who implored him to help bring more international financial institutions to shanghai. while government to government dialogue is limited and military dialogue between china and the

u.s. is nonexistent, these business leaders are there to bridge the differences on the commercial side. paul: a bit of a pilgrimage going on in terms of china. we heard that nvidia's founder might go. stephen: the man that was replaced as the world richest man by elon musk, bernard arnault, he is planning a trip to china later this month. china is a critical part of the luxury world revenue stream and it has been fairly battered through covid zero. also battered again after a brief uptick in the shares of many of these companies in the first quarter on the optimism

that the consumer would come back in full force following the dismantled -- dismantling of covid zero. the consumer has petered out in china. the shares have reflected that, whether it is lvmh, they have all come back since those highs in early april. it is critical and all part of this re-engagement. the world economic forum is back in person again this year this month. you will see a lot more western ceos and founders of big companies that have hinged their hopes on china's revival to their fortune. it is going to continue this

cavalcade of western business leaders coming in to china. paul: bloomberg chief north asia correspondent stephen engle. why china's recovery means more fiscal stimulus. this is bloomberg. ♪ we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com

shery: we take you to live pictures of the senate floor will senate leaders seem to be concerned about potential impact of sequestration. we are getting the statement from senate leaders that they save they will work in a bipartisan way to avoid this outcome. they share the concern of their colleagues about the potential impact of sequestration and will work in a bipartisan way to avoid this. now that they have agreed on that, they have asked senator moret and senator collins to set caps and get the regular order process started. the senators have reached a deal to expedite the passage. they were able to pass through the u.s. house of representatives to avoid the june 5 deadline.

let's see how we are setting up in the asian markets as we have trading underway, 40 minutes into the australia, korea and japan session. annabelle: there is one key market we are focusing on, it is korea. watch the key level, what we are waiting for us to see if we close above2587, that would take us up 20 percent. what is driving that, let's take a look at the key stocks on that benchmark. samsung, that tells us the moves that we are seeing in the names as a refection of the ai frenzy that is being -- that is gripping markets. let's take a look at why we may stay in positive territory. there is the lean that happened with the wall street session driven by the philadelphia

president, who joined his peers in arguing the case for a hold. we have a retreat in yields, that is another supportive factor for equities. it is leading to dollar weakness. you can see the legs of the korean won -- korean yuan. the focus on commodities and dollar weakness. the pmi data that we had out from china on thursday, this surprised the markets. private survey coming into expansionary territory versus will be had in the official reading, still in retraction. hong kong opening in the next hour. shery: gqg partners chief investment officer says his firm hold about $13 billion in indian

stocks and plans to buy more. i spoke to him about why he expects the country's stock market to outperform china over the next five years. >> it is interesting, if you look at the corporate earnings growth, if i asked you, what is the corporate earnings growth for the last 10 years? msci india or msci china? msci india. if you believe corporate earnings drive stock prices, i do not see why five years out, india equities markets will outperform. the regulatory risk is tremendous in these privately owned companies.

the privately owned companies, most of the foreigners own, we have very little chinese privately owned companies at this point. shery: is that why you do not like chinese tech? >> we have significant exposure in china, but when the chinese authorities intervened i do not have -- these were monopolistic companies. i do not like it as a shareholder, but from a company standpoint i understand. shery: does the china playbook have to be overhauled? >> i never understood why people expected china's reopening. reopening only lasts a few months. the playbook has shifted, you

have to see slow growth, which is normal for an economy of that size and scale. we like the soes in china, but we do not like the privately owned company. the playbook is different than what has been the case for the last few years. shery: let's bring in our next guest who is also cautious on china and staying defensive. before seeing any major policy stimulus, is willer chen. great to have you back. are you afraid that the coverage we are seeing and china might not be sustainable? he seemed to be comfortable with a state owned name. willer: earlier this year people

were optimism about china's reopening. the reality is we are facing a scarring effect. you see that april and may numbers is coming down a bit. after the overshooting for spending and consumption. that has gone, we are back to the reality that people's income are hurting, the growth profile seem uncertain. that is why they are reluctant to invest. they have a huge amount of -- across all sectors. all of these factors will weigh

on the recovery of china. that is why we need a stimulus from the central government in order to re-accelerate growth. the growth potential is still there in terms of long-term. in terms of short-term, we may see some headwind. shery: the valuation is not enough to tempt you at a time where we are hearing from the likes of jamie diamine -- the likes of jamie dimon, elon musk. willer: it is a goodwill gesture from china to invite them to invest in china. china always welcomes foreign capital investing in china. that can help things a little bit. we are focusing on the private sector because we see a little

bit of uncertainty for the private sector. that is probably the most important factor for us. paul: if we take a look at how the hang seng has performed this year, it is not the up pretty picture. we have a chart indicating we are off 20% from the january peak. do you look at this and say, that is a buying opportunity? willer: i think right now the hang seng index is back to the valuation of the preopening. it is very attractive. on the other hand we need to think about when the revenue growth profile of china. before that and before the major stimulus from central government, hang seng will have a short term. you could have a relief rally

driven by good data sets liquid -- data sets like what we saw yesterday. before we get that the household and private sector confidence back, hopefully it will they. the valuations are -- at this moment. paul: we have a much weaker view on as well. -- weaker yuan as well. how does a weaker chinese currency inform your investor decisions? willer: it reflects the fact that the interest rate between u.s. and china is getting bigger given that the fed's raise at a

very high level. china is in a loosening cycle to help boost economics. that's why the u.s. is in a weaker space. china's exports -- china exports a lot. the export data is supported by that. the depreciation has helped the export sector and can support the gdp number in terms of the export side. paul: willer chen, thank you so much for joining us, be sure to tune into bloomberg radio and get in-depth analysis from the daybreak team. you can listen via the app or bloomberg radio.com. plenty more ahead, stay with us. this is bloomberg. ♪

paul: let's take a look at our how we're on markets. the nikkei down by .1%. up by three quarters of 1%. big names, samsung electronics up by 1.4%. another risk on day for the asia

pacific. shery: especially after we had u.s. stocks getting ground in the new york session. futures slightly higher, as u.s. senators have reached a deal to expedite passage late tonight. in the coming hours of a debt deal ceiling agreement. we are seeing the dollar holding steady at 103 level after falling in the new york session. there is still a lot of speculation about what the fed will do even that we are headed towards friday's jobs report. we might see a slowdown in the pace of hiring as well. that is it from daybreak asia, our market coverage continues. this is bloomberg. ♪

good night! hey corporate types. would you stop calling ther rock stars? you're a rock star. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday to transform your business. but it still doesn't make you a rock star. so unless you work with an actual rock star. hi, i'm ozwald. hello ozwald. pam, you are a rock- i wasn't going to say it. ♪♪ fabulous surroundings... but everyone's looking at their phones

for financial insights from merrill. is he hailing a ride to the concert hall? no. he's making sure his portfolio and retirement plans work in harmony. they want to adopt a child and build a new home. so they're talking numbers with their merrill adviser. she's not researching her next role. she's learning how to handle market ups and downs without the drama. personalized advice so impressive your money never stops working for you with merrill. a bank of america company. (jennifer) the reason why golo customers have such long term success is because we focus onstops real foods in the right balance so you get the results you want. when i tell people how easy it was for me to lose weight on golo, they don't believe me. they don't believe i can eat real food and lose this much weight. the release supplement makes losing weight easy. release sets you up for successful weight loss because it supports your blood sugar levels between meals so you aren't hungry or fatigued. after i started taking release, the weight just started falling off. since starting golo and taking release, i've gone from a size 12 to a 4.

before golo, i was hungry all the time and constantly thinking about food. after taking release, that stopped. with release, i didn't feel that hunger that comes with dieting. which made the golo plan really easy to stick to. since starting golo and release, i have dropped seven pant sizes and i've kept it off. golo is real, our customers are real, and our success stories are real. why not give it a try?

yvonne: