oil for the world. and given some of these geopolitical tensions between the u.s. and china, it has become a necessity to be more resilient against these geopolitical tensions. and, while finding it out the hard way through the past two years during the pandemic, and what i mean with the hard ways that we've all seen how key industries in europe and the u.s., especially in the industrial and automotive sectors have suffered from a shortage of semiconductor errors .

shery: you're watching "daybreak asia" coming to live from new york, sydney and hong kong. annabelle: we are counting down to asia's major market open. haidi: fed chair signals higher rates but a more moderate based telling lawmakers to more hikes this year's up it a good bet. asian stocks are set aside on the hawkishness after the third session of losses in a seven month low on signs of wider policy divergence. a big day for central banks worldwide. the bank of england could deliver a jumbo hike after that surprise jump in core u.k. inflation. shery: take a look at how u.s. futures are trading at the early asian session. not a lot of movement after the s&p 500 fell for fell for a thid

consecutive session. it might not be too much alike for the moment for investors where we talk about a continuous hawkish rhetoric, valuations are pretty high in bullish positioning is already pretty sweat -- we saw the nasdaq 100, ai related stocks, semiconductors were week. we had treasuries mixed. the two year yield was higher, 10 year yield stable around 371 level. we have a strong 20 year bond option that investors were digesting in today's session. the dollar fell for the first time for gains after three consecutive sessions. that helped a little bit when it came to commodities. it was slightly higher in the new york session and we did see some signals that we could see more demand coming from asian buyers, that helped but it's not being sustained in the asian session. annabelle: china is the big question over that. we still needed to see further stimulus coming from authorities and officials in beijing.

pointing at the moves in the treasurypointing at the moves ie treasury space in the market on wednesday because this will have huge ramification for trading sentiment in asia on thursday. yield curve inversion and we hit a full percentage point in the prior session. it was that expectation from powell that we could have at least two more rate hikes baked in this year. inflation yet to be tamed and something else that has been a consistent theme is we are bracing for more action today. the boe expected the hike. turkey making a central-bank decision. switzerland and norway in emerging markets and focus. indonesia and the philippines. a lot to keep investors on their toes. let's change on a take a look at what's happening in the equities picture because we will be watching and guiding for a weaker start. new zealand online to the downside. something to note, china and hong kong, both key market shut for a public holiday. continuing to monitor what's happening in the japanese yen. we had seen a pushing past that 142 level around a seven month low. still around that today in the session.

it again, it is that rate differential we monitor between the boj and the fed. shery: let's delve into wet fed chair jerome powell said because we are not necessarily done. we did day one of the testimony to congress, he said policymakers expect interest rates will need to move higher to contain price pressures despite last week's decision to hold, and that's when he was facing questions from the house financial services committee. he was flagging a moderate pace of hikes ahead. take a listen. >> the level to which we raise rates as a separate cash -- question of the speed to which we move. speed was important and it's not important now. this -- this summary of economic decisions is really that given how far we've come, it may make sense to move rates higher but to do so at a more moderate pace. shery: chair powell saying the timing of additional hikes will be based on incoming data with

perhaps two more increases looking likely. >> we agreed to maintain the rate at that meeting, almost every single of the 16 of the 18 participants on the fomc wrote down they do believe it will be appropriate to raise rates and a big majority raise rates twice this year. i think that's a pretty good guess at what will happen if the economy performs as expected. >> great expectations are out of step. joining us is the investment advisor at evans. the u.k. data might drive that point home, are we really being a bit delusional when it comes to how structural this inflation expectations should be? >> it really is interesting because we saw that snippet from jerome powell whose testimony to

the senate really is -- it seems at paying to push this point that there will be further rate hikes to come, but the market doesn't seem to agree and this is sort of the crux of the main issue in the next month or so is at what point will markets have to catch up with the rate of change expectations and will there be big dislocation. the reason we think markets are out of step with the inflation outlook is that we are starting to see signals domestically in australia and in the u.s. of inflation being embedded in the psychology of the market in terms of inflation expectations. one example we have here locally is that's a mobile phone telecommunication. we are starting to see companies in that situation put up their pricing power so that they are lifting their mobile phone chargers in line with cpi.

the mobile phone business model is notoriously fixed costs, so it's not like they are raising these to make up for costs. it affects the environment where a lot of companies with pricing power are lifting prices in excess of cost and that has implication for inflation and its stickiness. haidi: what opportunities are you looking for in a higher for longer or harder than what we see now sort of environment? >> its companies with pricing power. another when we are familiar with this qantas. the department of transport says the budget airlines between sydney and melbourne are 20 -- 20% higher. we've all felt it, whether a shareholder or a customer you will experience a price rise differently. in a higher for longer

environment, you want to look for those businesses that have pricing power. valuations are going to support that and it's already a crowded trade. in terms of looking for where we see value, for investors at the moment, stepping away from larger caps and we've been doing work in a small cap area with a longer time horizon, but that's where we are starting to see value of marriage. shery: are you seeing value in china or it might be lower for longer, completely different scenario from other advanced economies? >> it is a completely different scenario at the moment and we are seeing opportunities in china and that reopening story that investors were quiet aboutt has worked itself through a bit slower than most expected, but we are still seeing positive

signals around that. so the data supports the consumer is still strong. deposits in bank accounts are so high, so the consumer has ammunition. the key issue is really around confidence in that confidence issue was sort of spark through the property market in sector and some of the issues there. but we are being told to expect policy improvements around the policy -- around the property sector in the coming month or so and we've also saw that interest rate cut last week that whilst, in it of itself, is not going to move markets, it is an indication of intent to on the behalf of the government. so we think if that is positive. when we look for a how to get exposure to what we think will eventually be a positive reopening story, there's is either a broad exposure to the market where we look at you to attract the hong kong listed shares but also interesting plays on the consumer.

something like esteesomething la stock we are interested in. we think it looks interesting. it's actually u.s. listed but the second largest beauty company in the world, and they have had coming year to date share prices that 24% lower in they are looking at weakness and interruptions on that chinese reopening story where they have a china retail struggle. shery: we've heard a lot of calls about looking at safer u.s. bets that have exposure to china. set the play you are thinking of, or do you have more of those? >> it's larger, is certainly an established brand, it has a large number of brands underneath it. it has to diversify its basket offering. we think the opportunity is because management themselves

anticipated that the china reopening would be faster than that has happened so they disappointed the market in terms of having to revise the earnings forecast that we think it presents an opportunity for investors because we think the inventory will work through the channel and the share price will reflect that. >> for those companies that have exposure to china, what is that mean when you have a weak china yuan that could get weaker. >> that currently is certainly an element with all of these businesses and that's the weaker part of the chinese reopening story in terms of spending in rebound and travel, so in terms of the laggard for the domestic chinese community in terms of their traveling, so that has really been pulled back and is in sluggish demand.

shery: investment advisor at evans, always good to have you with us. soft things funds are said to prepare another round of layoffs. shares in outlook for the world's biggest tech investor later this hour. first, previewing a big day when it comes to global central-bank calls. policymakers continuing to fight against inflation. this is bloomberg. ♪

shery: indonesia and the philippines are expected to leave their key interest rates unchanged later thursday as investors worldwide brace for central-bank policy calls. let's get more from bloomberg's chief rates correspondent for asia and live contributor garfield reynolds. garfield, indonesia,

philippines, we just had brazil, we will get boe, we are getting turkey, there's plenty to discuss, i will let you choose what you want to start with. garfield: start with asian central banks that first off the blocks as it were and they are both similar, indonesia and the philippines i very strongly expected to hold interest rates and unlike their developed market peers, such as the rba, they are mostly not in the business of radically surprising the market. excuse me. a big part of the reason for that is that inflation is down to the levels the central banks in both the philippines and indonesia are comfortable with. they aren't talking about worries that inflation will get out of control. to some extent they have the advantage that -- with the federal reserve remaining hawkish, the u.s. dollar remain

stronger-than-expected, that helps to take the edge off economies globally, especially in asia, the dollar has big influence in this region. so if there was any thought that maybe we need to be tighter in policy, where our current interest rate settings are, the federal reserve has taken care of that concern for them. haidi: that inflation paren out of the u.k., there are a couple of different things i wanted to talk about, one is implications for the boe, second is you think this will make other central rates that have been think about pausing have paused feeling skittish about this is what happens if you fall behind or the calculus against this fight against inflation goes a little bit awry? garfield: that's a very good question and a very good point. it's been obvious over the last few weeks that develop markers

central bankers are worried about inflation. part of the reason is not just what's going on in their own economies but what's going on elsewhere because they see their economies being interdependent, and they also see if inflation is sticky in the u.k., they expected to be sticky in their own economies because they see similar dynamics at play. nobody now wants to get called out being too soft on inflation at a time when that's being seen as a recipe for a inflation staying too high, -- the concern for central banks is that the clock is ticking on entrenched inflation expectations. ticking on entrenched inflation expectations. the longer they let inflation stay i, the more likely you are

to get ingrained inflation expectations. that will make it so much harder to bring it down sustainably because businesses will keep on raising prices, workers will keep on demanding higher wages and all of that will create a spiral where costs go up and therefore prices go out at a time where the central banks are desperately trying to slam them back down. that's why i think powell's admittedly fairly hawkish comments in the testimony had a stronger impact precisely because the u.k. and work they had done to the u.k. bond market where the yield curve inverting mers steeply than it had done for some time and that set off a fresh move in the u.s. yield curve to -100 base points. haidi: bloomberg's rates correspondent for asia, garfield reynolds. big central-bank finance

appeared in the meantime we are also watching hong kong on the china markets are closed when it comes to the finance appeared in the meantime we are also actor session today with the public holiday. the stock exchange opening a new york office to meet with u.s. investors looking to increase their exposure to china's markets. nicholas told us he is focused on the city's connectivity with the world to drive growth. >> there is a very specific and unique selling proposition of hong kong they you will have access to the capital onshore china. that huge savings amount from that market is not going to be available to international companies that decide to list in hong kong because of a regulatory change that has just happened in march of this year that allows all that capital onshore, both weakened and institutional, which is massive because the domestic chinese markets have been doing very well. for ipos, they have not suffered in the same way as the international markets. if you can have that pool of

capital that is uncorrelated with the world, that's all the international investors that they all have offices in hong kong. they all have an infrastructure in hong kong. you get the best of post world -- both worlds in one area. we think it's a unique proposition from hong kong. >> you talked about it being that gateway for mainland folks looking to go out to the rest of the world and those folks looking from the rest of the world to come into the mainland china. should investors, whether the company's listing or whether the folks buying up these stocks, should they look at the hong kong market in the mainland chinese market is to separate markets or are they much more blended now than they were in the past? >> we are the intersection of international in china. we are trying to make sure we can facilitate the two-way flow. whether into china or from china into the world. when they think about hong kong, they should think about a

marketplace where they can access opportunities in china around asia we have 40 derivative products covering all asian markets in the world is more international companies decide to use hong kong as their listing base. shery: that was the executive director speaking to bloomberg's romaine bostick. china has said to have begun a fresh round of nationwide inspections to work out how much money local governments and. it's a sign that authorities are preparing to take concrete steps to tackle a key risk. local officials will be pressed to come clean about their so-called hidden debt as national leaders attempt to get a fuller picture of liabilities. your taking a look at pictures of president xi jinping and president biden. washington's efforts may be at risk after president biden call xi jinping a dictator. china said the comment was a

provocation and a violation of his political dignity. biden spoke at a fundraiser about the alleged spy balloon incident when he made the off-the-cuff remark. secretary of state antony blinken left beijing after a trip aimed at relations that drew praise from both presidents. french and chinese officials say there is room to deepen commercial ties with the focus on combating climate change and reforming global finance. speaking ahead of its inner from the two countries in paris, the chinese premier said the relationship is resilient and stable and that he looks forward to discussing ways to expand trade. haidi: prime minister modi is on his first day visit to the u.s. he's looking to boost the economic clout as an alternative to china. among his goals will be persuading the u.s. to ease

reglet tory constraints to doing business particularly when it comes to the tech space. he wants the two sides to work closely on the production of semiconductors and manufacturing sectors. that stands in contrast with the beijing policy that has been the target of u.s. restriction. biden is hosting him for a private dinner and bilateral talks. the indian leader is scheduled to address a joint session of congress before heading to a state dinner at the white house. he plans to attend an indian diaspora community event. private-sector meetings are on the agenda, he has met with tessa ceo and it seems to be bearing fruit. he will invest in india as soon as humanly possible. and you can get a round up of that story and other stories to get your day in today's edition of daybreak. terminal subscribers can get that on dayb . it's available in the bloomberg anywhere app, you can customize

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haidi: seeking to raise the group were good tool ever percent by 2023. this comes as vw makes a switch to ev's, which are less profitable than their combustion engine peers. vw's component see tells bloomberg about some of these challenges. >> it's totally different, keeps us awake at night. i think one of the biggest challenge odor motive car guys will phase. we are looking for a perfect -- perfect team and we are linking

up sectors of batteries. we are little bit behind existing players, so we need to catch up. >> one of the challenges i think a lot of people who are further ahead, it's say tesla, they have issues of reaching the scale. volkswagen really masters the scale, what can you do to avoid problems that your competitors have face. >> scale. volkswagen really masters the scaling complexity. i think we can match that. it is our own battery companies. we cover them in the back. we have the entity to go fast. it is a complex company. and then the technology is really important because of our technology of decreasing technology would give us speed.

>> in terms of bottlenecks, is a labor, machinery, what are the things you need to smooth out? >> everything is a challenge in the business. is not only a battery. it starts with people. they handful is worldwide. it's knowledgeable of our battery business. that means people is a challenge. equipment to ramp up factories is a challenge. this business is a challenge. shery: the head thomas speaking to bloomberg's oliver. coming up next, softbank founder says he's ready to move to tech investing. as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network,

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>> now the time has come to

shift to offense mode in the investment decisions. there are a lot of uncertainties, but now i can say that ai is about to grow explosively, and we as a group are preparing for such an error to come. i have been busy myself getting ready for the future. haidi: softbank founder -- shery: softbank founder and ceo switching to an offensive strategy. softbank has been misrepresented for far too long. the asset manager, great to have you with us. we know investors have been pretty impressive softbank spikevax. what are markets missing? >> thank you so much, great to be here. people are missing that softbank is already one of the biggest day investors in the world. if you look at all the projects that it's involved with from rideshare through to medical diagnoses. and the venue of those

businesses to softbank. it is not at all represented in the share price of softbank today. a lot of investors are looking at every softbank order and how many buybacks will he give. that's not a question at all, so the story is a 5, 10 years story, which gave us a good glimpse of this week. shery: to your point on aia investments, the british chip designer is actually central to that strategy. how do you think this factors in? >> it's central, the amazing thing about softbank is a has all of those tanks -- all of those stakes in for a rideshare of the medical diagnoses. but it also has the chip technology that powers a lot of ai, which was quite a major

state. we watched it for many years. we love what they do, and the indispensable role in the future of ai is without debate. people are talking about a $60 billion price tag in the calculation suggests that that would be an understatement of the future potential of this country, given the very extensive operations as. softbank is the only country that says it has the actual applications using the ai, as well as the machinery, technology, semiconductor basis for the ai. it has the whole supply chain wrapped up in one country and that story hasn't been anticipated in the share price yet. haidi: richard, fans would be glad to see him back on the offensive. it seems like the dormant era is now over, but what are the execution risks?

>> it's great to see this and it's great to know that we are fully involved in this. he has the history of softbank and will be part of this future. the execution risks, i think he would say better than anybody. they've been involved with companies where they haven't had much control, and they've been unable to control cash flow and some of the investments, they've had problems with regulating in certain markets, and they step back where necessary. he is the most eloquent explainer of the problems in the mistakes of softbank in the past, which i think he gives investors confidence. yes, he has made mistakes, he has learned from those mistakes and gone forward. those risks having inadequate

board control and risk regulation, he's very sensitive to and i think the future operations will be much more cautious around those areas. haidi: that sale and 2019 will be one that hurts him in terms of how much he sold for 3.6 billion now worth over 50 billion. he said himself a couple of big hits makes up for mistakes. does he need big hits or is it enough that the fund, the portfolio is through foresight or through excellent timing at this point or this juncture, it will positions for ai? >> i think it's enough. i hate to question what he said, but i think he will get tickets, which is what is what should eao

to the value that's being mooted and beyond that. even that, those tickets of the portfolio his built is very exciting. he has so many areas whose future value would surprise the market significantly. i've always felt they are doing this darwinian process of finding the winners in the inoperative field of tech that they are invested in and those companies over time could even be consolidated to softbank. he's got so many options like that in softbank, especially through the funds that he doesn't really need the big kids to survive. i'm looking at it as a very well balanced portfolio, but i think he will have some big hits and this is going to be one of them. shery: how optimistic are you about some of the investments within japan because we have seen this exuberance by foreign investors on anything to do with the japanese economy.

>> i think softbank, in a way, i sort of hesitate to say this, but deep down, i think it's a microcosm. i think it's an amazing organization. frankly, the whole of japan, you could say that. there's a lot of fantastic technology independent that has not been valued by the markets, softbank specifically encapsulates that story. if you look at what they are doing with the integration with the payment businesses, fantastic advertising platform, most of them using the sms service, that's very powerfully placed, and it's growing growin,

and i think the business alone is a great example of how it's a leading asset of technology in the fund is basically japan at large with different operations which overtime will play with each other in an amazing way. and again, softbank is a representative of japan, misunderstood, a great company, which i think investors are starting to wake up to, i think it's a very interesting story in that way as well. shery: great to have you with us, of course with the latest on what to expect from softbank as we are now seeing live pictures from washington. we are at the white house and you could see the prime minister of india speaking to the u.s. president, joe biden, and the first lady. this as prime minister modi makes a visit here to the u.s.. we are expecting this state dinner and an address at a joint

center of congress as well. we know that india is crucial for the biden administration when it comes to economic and strategic partners in the in pacific. and of course, as potentially a massive potential counterweight to china. you are looking at prime minister modi though into the white house. we have seen some frictions with the u.s. on india's reluctance for the invasion of ukraine. but we will continue to watch what comes out of those conversations. in the meantime we take you back to annabelle in hong kong for a check of markets. annabelle: just speaking of india, it has been a key market to watch those investor flows away from china and into that market. in terms of what we are expecting in asia, the focus front and center on jay powell's testimony before congress, his expectation and that reinforcing of the hawkish narrative around interest rates. perhaps we could have two more

rate hikes in store this year. that is casting a shadow over trading sentiment in asia. we are 20 minutes or so from the open in sydney, seoul and tokyo. we are guiding for a weaker start pure new zealand online to the downside. u.s. futures are steady but we have seen the selloff extending for a third straight session on wednesday. changing on, we are starting to see investors really discuss this ai hype. how much more room we have to run in that and we had a callout from soft and essentially guiding for the s&p to end the year at 4300, that is the revised price target. that is around where the s&p 500 is trading today, but it is an indication of how much strategists have been wrongfooted by his exuberance around ai and that bearish narrative that was characterized at the start of the year. this chart taking a look at the nasdaq. we overboard territory. we see the rsi trading above

that 70 see the rsi trading aboe that 70 mark, which tells us we are looking over board. it is that big debate, more room to run in the rally or should be cap off taking some profit at this stage? shery: that was the case because ai related shares took a hit. annabelle there with the latest on the markets, but our exclusive conversation with colombia's finance ministers shares his outlook for the peso amid this hawkishness we are hearing from global central banks, 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: we are watching emerging-market currencies with a flurry of central-bank decisions. the latest that we got from brazil that kept interest rates steady with no indications they were dropped the hawkishness we've seen so far. we saw a rally of 1% and i'm very excited to see how it opens in tomorrow's session. take a look at the turkish lira. double digit losses in the past month, and we are the people of where we could perhaps see a huge jump when it comes to the benchmark rate and perhaps a return to more orthodox policies under the economic leadership. we have seen incredible weakness for the turkish lira. we are following the indonesian rupiah following -- falling to

the lowest in three months. it actually bounced back. we are expecting the central bank to hold the rate steady. columbia actually saw a rebound in the previous session against the u.s. dollar after taking a hit, given that the trade deficit number came in narrow, less than expected. you have to put this into context. it's already the best performing currency this year. it's worth noting that the economy faces pressure as other economies are facing slower external demand. a spoke exclusively with the finance minister and i asked him about the risks ahead. >> we are also facing challenges here and we are being impacted by reduced imports, particularly of intermediate goods and durable consumer goods. our concern is placing them with domestic production. that's what we are striving for.

>> still, the colombian peso has been very strong this year, how is this affecting your monetary policy path? >> we have reached an exchange rate that has stabilized between 4100 and 4200. we have inflation rate that says it will remain stable this month. currently the benchmark rate is above the inflation rate but into two or three month from now we will review and it may be appropriate to start lowering it because we will improve the 9.2 inflation rate. >> we have seen central banks in economies such as canada and australia that paused hiking rates but then resume tightening, is there a risk that that might happen in columbia. >> it is a risk, which is why it is expected there will be changes to the benchmark rates

as they are already above the inflation rate. if inflation continues to decrease, it would pay the way for cuts. >> we've seen the fed and the ecb and other central banks sounding very hawkish. higher interest rates -- how will higher interest rates affect developing places like columbia? >> more than what is happening externally, we are affected by the fact that the previous government, which is limited our ability to lower inflation at the desired pace, while food and other goods are decreasing in price, fuel costs are rising, we need to ensure that the fuel prices do not negatively impact the overall inflation outlook. >> we have seen some of the reform efforts from that governments spook investors, what's the risk on investment flows into local markets?

>> a reform that most concerns investors is the pension reform. however, it already has two specific contexts, first, a consensus that private funds should be eliminated. this means building a base pillar system with its space. the discussion surrounds around the eligibility criteria for pensions and the current context. the threshold for pensions is at three minimum wages, the second topic is whether there will be a savings fund, the answer is yes, it will be associated with it but will have governance and administration that allows participation in the capital market, not only in public but stocks and other securities. >> the political climate in columbia has affected investor sentiment. will there be more stability? >> the idea is indeed for the government to regain a

parliamentary alliance to continue implementing various reforms in progress. the president has always stated that he came to bring about real change, not just cosmetic changes. what we need to do was identify where those proposals stand and engage in public discussion. after all, the reforms are approved by congress. >> that was the finance minister speaking with sherry. it feels like every week we talk about is it finally time for the emerging market, valuations are looking so attractive, but it is almost unprecedented in the global headwinds and challenges. there is a qr that's looking at the deal of the century they see in emerging markets. in he is a renowned quantitative investor saying the u.s. dominance of equity markets is about to end, as shearing in a wave of diversification to

benefit emerging markets for years to come, they say that their models offer the cheapest relative valuation since the turn-of-the-century and they see outperforming over the u.s. over the next decade. the basic question whether we finally see an end to the u.s. exceptionalism that has dominated global equity markets, especially in recent years. shery: what i like about this research as it goes beyond valuations and headline numbers. what a qr actually does is analyze inflation-adjusted earnings and long-term dividend payout ratios relative to market prices. so it's not just about headline, whether it's cheaper or not compared to advanced economies, and we are seeing that even after all of these calculations, it's the cheapest in 25 years, but i do get where you're getting that skepticism about em stocks and em markets. it's a six consecutive year that

the msci emerging-market index has underperformed its advanced market. so we will continue to watch some of that divergence in policy could lead to more boost and growth in emerging markets. >> i find it interesting that it's not just a numbers game. it sort of almost like a mindset issue when it comes to just how you do have that meaningful u.s. overwrite compared to what you see with the market cap portfolio, it is definitely one we are watching, interesting definitely one we are watching, interesting story on our bloomberg, you can catch our exclusive interview with deutsche bank ceo coming up later on thursday on bloomberg tv at 10 past three in the afternoon hong kong time. if you are watching in london. still ahead, the u.s. coast guard said under not -- underwater noises cannot be bank to the missing titanic submersible. the latest on the urgent rescue

mission is next. this is bloomberg. ♪

♪ (upbeat music) ♪ ( ♪♪ ) woah. ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall. haidi: time is running out for the five people on board of submersible that went missing during an expedition to ask where the wreck of the titanic.

bloomberg's paul allen joins us with the latest on the search. there was a glimmer of hope with the underwater noises being detected, but have we discovered anything further? paul: the short answer is no and it is just a glimmer of hope in those noises were detected 20 hours ago by canadian ship that was part of the search. but the noises can't be identified, nobody knows where they are, but the u.s. coast guard, which is leaving the expedition says, it is still a search and rescue and you have to remain optimistic and hopeful while there is still hope. and there is still a glimmer of hope for the five people on board, which probably now have about 15 hours worth of breathable air remaining. shery: returning to ocean gates approach to safety, what sorts of concerns are being raised? paul: a lot of -- coming forward with people who had experience with urging.

a 2015 or filing from a previous employee claims he was sacked back in 2018 when he raised warnings about the submersible, saying opposed extreme danger to passengers. the maritime technology society in march of 2018 also wrote a letter warning of the experimental approach being undertaken by ocean and how that had catastrophic risk attached. even the company founder himself , he was on a podcast in 2022, calling safety a pure waste. there was another story in the media today from a german adventurer, he called his voyage on the vessel in 2020 a suicide mission. he said there were a number of instances where they lost contact with the surface. there were electrical failures and a bracket holding a stabilization fell off and it was reattached with zip ties. he said he considers himself lucky to be alive. we've had no, about this

disaster yet from ocean gate. shery: that was paul allen joining us from sydney. we are heading towards the opening trade towards korea, japan demo show you. these are the stocks we are watching, bloomberg learned softbank's vision fund is preparing for another round of layoffs as soon as this week, we are watching -- during the bulls on toyota as the world's biggest automaker plays catch up in the shift to electric vehicles. also, watch those energy stocks for signs of improving demand in asia. we are now seeing oil prices holding steady after we actually saw a little bit of again in the new york session. plus, crypto related shares may move when it going past $30,000. keep an eye on these. haidi: take a look at what we are watching when it comes to this.

we had that pullback in u.s. equities, as well as moves when it comes to the u.s. dollar on those comments from fed chair powell. just reiterating the hawkish sentiment for a potentially two more hikes to come. the dollar sliding after those four days of gains. the yen also continuing to solidify its weakness, weakest against the greenback since november after jay powell set officials expects rates will need to move higher again to curve inflation. these diverging expectations when it comes to monetary policy and the u.s. and japan continue to drive. we are looking at 132.6 per dollar. certainly 145 is what we are looking at. even though the yen has now fallen about 8% against the dollar this year, one of the worst performers in the developed markets. ♪

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shery: this is "daybreak asia", we are counting down ages major market opens as we digest central-bank decisions around the world, we heard from chair powell speaking to congress today, and really retaining that hawkish tone we are expecting to hear from him tomorrow as well. haidi: certainly, as you alluded to, more central-bank action, the boe is what we are watching after that red-hot inflation. i think it casts a bigger problem potentially for central bankers to think about what are the ramifications as we can see in terms of underestimating how strong sexual inflation might be in being cut behind. lots of uncertainties so for this market. we have a couple of key markets when it comes to greater china being closed today. what are we watching for this open? annabelle: we have the open here for japan, korea and australia. also cash treasury.

watching that two year yield because that is where we saw most of the activity in the prior session. as you said, it was jay powell really reiterating that message, telling us perhaps there are still two more rate hikes to come this year. we saw treasury yield curve inversion reaching 100 basis points. so a single to us with that growing recessionary outlook. that is the state of play as we head into the session and it will influence the direction of equities. we see the need to -- nikkei come along to the downside. all four tents of 1%. keeping an eye on that yield gap between the boj and the fed because we have seen the fed pushing past that 142 level. some strategists are saying you have to get to around 145. that's at the point we would see some sort of concrete intervention coming from officials in japan. we have other markets coming online. at the start of the day we are keeping an eye on the korean won in particular because we had seen a pushing closer to that

their teen hundred level in the prior session. it was up around 1%. today looking firmer. we did see that dollar weakening in the session against most currencies, including the japanese yen. we are trading in a tight range as currency strategists are saying the wand will appreciate going into the second half. stocks rise, we do see the kospi looking a little bit weaker, watching the direction of tech stocks because they tech stocks because they bore the brunt of the losses in the prior session. we are seeing there because jack looking weaker at the site -- we are looking at the kosdaq looking weaker. racing for decisions in the g10 space. developing markets, turkey, indonesia, the philippines intern. this change on because we are starting to see more strategists really recalibrate their expectations around rate hikes this year, the expectation that

inflation has a way to go to be contained in we saw td securities in the last half hour. raising their forecast where the key rate or the terminal rate in australia will top out. they now see that will become 4.85 percent. you compare that to where we are today around four point 1% or at 4.1%. it tells us three more hikes in store. in terms of what else we are watching, the direction of oil, trade is focused on demand signals coming through, perhaps any signals around the strength will up in demand that we could see from china with perhaps more stimulus more stimulus on the way, that is what investors and traders are bracing for, some sort of announcement around that. >> investors should take the opportunity now to begin managing risks and downside exposures. let's bring in global cio and portfolio manager at financial services. always great to have you with us, is the concern here a policy mistake by global central-bank,

what is the biggest risk? >> i think that is the biggest risk the markets face right now. we are seeing so much policy tightening already. see the global economy slow. inflation is printing lower, albeit sticky, and we have a set of central banks help bent on getting rates higher. that is going to be a real bitter pill to swallow if we do see two more hikes in the u.s.. a few more hikes in europe, it will drive a recession onto the economy. and it's really closing off the opportunity of a soft landing, i think. shery: what does that spell for opportunities in the treasury space? will we continue to see the selloff in the shorter end? >> we have seen those yields just keep pushing higher in the curve invert even further. that for us is an opportunity, yields in the two-year space still haven't got back to their peak. that they are looking

interesting from income level, they are looking very interesting from a downside protection level. they are going to give some stability in the portfolios if we do see some recession. that's really the space to be looking. getting your fixed income portfolios moving up the quality space is exactly the thing that investors should be looking at. haidi: we had a look at inflation numbers out of the u.k. and that will inform the boh -- boe decision today. is there a broader concern in terms of that policy risk of pausing to early, of this is what happens when you don't get a handle over inflation. do you buy the structurally higher inflation for a longer story and investor on that? >> i think that there is a risk that central banks do stop too early. i don't think we are seeing structural inflation. we still have aging demographics and global economies that have

far too much debt. these are structural changes or structural issues that have not gone away. i think what we are seeing here is a tail end of a pandemic driven cyclical inflation boom that is already beginning to slow, and we have long and variable lags in monetary policy. they are going to come in over the next three months, over the next six months, we will see many markets will be surprised by how quickly headline inflation will drop over that time. i don't think we want to trade for secular or structural high inflation, but just be prepared that this will be here for a couple more months. shery: -- haidi: what are your views on investing in are having exposure directly to china at the moment? it feels like we are still waiting for more productive stimulus to be announced. clearly deleveraging has become

a renewed concern. >> i think a couple of issues with china, the economy is recovering. it's been disappointing in terms of the speed of that recovery. hopefully we see policy support on the monetary side. we see rrr cuts and that will be good for the economy and good for earnings as well. the challenge that investors face when they are thinking about china is, it's not so much the economy holding back equity prices at the moment, we just do not have foreign capital coming back into the market in any great way, and that's a real challenge at the moment. i think until we get geopolitical issue short -- sorted, we see china going to europe. until we start to see foreign investors go back to china, it will be the reflection of the

better economic outlook. shery: do you see changing toner sentiment from investors that are looking to china, especially after policymakers in beijing invited these business leaders like jamie dimon, elon musk, not to mention a thawing of relations with secretary blinken's visit? >> it really early days in this pathway, i think. there has perhaps been a little bit of improvement, certainly sentiment from investors we are speaking to outside of hong kong, but it's not happening particularly fast. this is something i think that over the next month or two months will be catalyzed. it probably will take further fiscal simple support and further monetary support before the broader global market really sits up and takes notice. haidi: always great to chat with

you, cio and global portfolio manager of financial services. let's get back to annabelle: in hong kong -- annabelle in hong kong for a look at early movers in the session. annabelle: 10 minutes underway for trading. the topix is moving higher at 4/10 of a percent. we had a callout for goldman sachs. essentially, they have lifted their targets for japanese stocks over the course of the year. they are saying the topix could reach 2500 in 12 months. that is up from their forecast -- earlier forecast at 2200. we are looking at a near 9% upside from the close on wednesday. essentially what is guiding that decision from goldman sachs is a number of different factors. they are expecting a positive outcome for the first half earnings season. upward revision to guidance, favorable earnings momentum. further announcement of measures to improve profitability and buybacks, a lot of focus coming through on corporate governance

reforms in japan. in the near term they say the momentum could likely show a little bit of slow lists -- slowness and that would be down to the signals of overheating and the lack of catalysts. the topix rising for tens of 1%. another sector focusing on today in at the start of trade and they are a little bit mixed as we get underway in the session, but we have tourism data coming through, and even though there has been interest from foreign tourists to visit japan, around one point 9 million visitors over the course of may. we are near 70% of the levels in 2019, approaching those pre-covid numbers, what is really lacking is visitor arrivals from china, only 134,000 were mainland chinese tourists. that tells us we have not seen a big pickup from that market. it is a big tourism market and analysts say that is a large

negative for those tourism linked stocks. shery: we will likely talk more about chinese demand. still ahead, pmi giving us their outlook for commodities because that rebound in chinese demand is not appearing as of yet. first, we focus on the effects and bond markets with central banks from london to jakarta. set to make great calls. a preview of today's they lose with the decisions. that's next. this is bloomberg. ♪ thanks to avalara, 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

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>> inflation pressures continue

to run a high, in the process of getting inflation back down to 2% is a long way to go. we are very high from our inflation target of 2%. we are strongly committed to getting inflation backed down to 2% over time. nearly 2% of participants will raise interest rates further by the end of the year. speed was very important, it's not very important now. given how far we've come it may make sense to make rates higher, but to do so at a more moderate pace. shery: indonesia and the philippines, we are seeing easing. central banks in those countries are expected to leave their key interest rates unchanged later thursday. this has just a couple of great decisions as the world races for policy calls peerless get more

from bloomberg's chief rates correspondence for asia and garfield reynolds. we are talking about boe in turkey but let's start with indonesia and the philippines. it seems some of the economies in asia have not been suffering those huge inflation pressures at -- that perhaps advanced economies have. >> it did suffer strong inflation pressures, but for one thing indonesia and the philippines have done more than develop markets over the last 20 years or so, we've had a various strong this inflationary trend, so they were in many ways faster to react in the early going when inflation did take off, now, inflation is coming back down at those sort of levels that those central banks are comfortable with. very strong signals from both the philippines and indonesia. they are likely to hold rates, that's the overwhelming consensus amongst account

numbers. it also helps them that the fed and others have woken up and they are looking very hawkish. particularly the fed is likely to go on pushing higher than the market is expecting. that's hoping to keep the u.s. dollar stronger. there is extra insurance as it were because a stronger dollar does tighten conditions a bit at the margin. thethe u.s. dollar is stronger d that's a slightly tighter scenario and certainly a long way away from anything like loosening of local financial conditions. and therefore, not the sort of thing that will allow inflation to re-accelerate. haidi: also a long way away from getting on top of the inflation fight is the bank of england.

they will have to pick up the pace and we spoke about this earlier, is this a cautionary tale for what could happen for other central banks if they don't get on top of the inflation fight? >> i think britain is doing a very good job acting as a cautionary tale. they acted as one on the fiscal side, what we saw what happened when latest -- liz truss ill-fated spending pan sent a gilt market into a meltdown. and, we have now got, again, boe , obviously it's aware that it would like to avoidwould like te u.k. economy into recession, but every time it thinks it might've done enough, inflation comes into high. staying high no matter what they do, now that they have stopped hiking rapidly. so there's a strong expectation

of free acceleration to 50 basis points will be on the table at today's meeting, and if they don't do that, and maybe even if they do, they are likely to take a page out of the fed's book and raise their forecast for where they are going to have to go going forward because all develop market central banks are singing from the sheet that they are determined to get inflation back under control. and when you look around the developed world, you have to figure that the u.k. looks like the economy where they've got the furthest to go to achieve that. even the they have a long way to go. they have a different set of circumstances and it's hard to see how the bank of england would avoid imposing a lot more pain on its economy, and that's the big test.

for the u.k., the u.s., europe, australia, are they going to have to send their economies in recession in order to rein in inflation? haidi: m live contributor are filled reynolds. certainly that divergent story from a more hawkish fed out of boj that's not really doing anything for now, it's playing out when it comes to the sustained weakness when it comes to the end. the weakest against the dollar since november after the comments from jay powell saying they suspect interest rates will need to move higher to curb inflation with diverging expectations and policy between japan and the u.s. continuing to drive that weakness. we did see weakness past 142. we could've pared some of those losses, certainly around 145 is when we could get concerned when it comes to yen shorts. of course always on the watch for potential policymakers intervention. the yen actually was the only

currency within g10 to see that negative move after we had the dollar falling for the first time in four days, extending those declines. it really benefited the likes of the aussie dollar now sitting just at 68 u.s. cents -- $.68. also watching you are extending the droppers of the pboc weaker's -- weaker fix. the fragile sentiment as the markets have really started losing. losing patience when it is waiting for more measures to be announced. shery: -- hong kong stock exchange opened a new york office to increase their exposure to china's markets. the ceo told us that his focus -- he is focused on the cities connectivity with the world to drive growth. >> there is a very specific and unique selling proposition of hong kong that you will have access to the capital of onshore china. that huge savings amount from

that market is not going to be available to international companies that decide to list in hong kong because of a change that has just happened in march of this year that allows all that capital onshore, both weekend and institutional, is massive because the domestic chinese markets in shanghai and shenzhen have been doing very well. for ipos, they have not suffered in the same way as the international markets. if you could have that pool of capital, which is related with the world, plus all the international investors, that they all have offices in hong kong, they all have an infrastructure in hong kong, you get the best of both worlds in one area. this is exciting and we think is a proposition from hong kong. >> you talked about your exchange being that gateway for mainland folks looking to go out to the rest of the world and those folks looking for the rest of the world to come into mainland china.

should investors, whether they are the companies listing or the folks bind up the stocks, should they look at the hong kong market in the mainland chinese market as two separate markets or are they much blended now than they were in the past? >> we are the intersection of international of china. we are trying to make sure we can facilitate that to wait flow . whether it's into china or from china into the world, so when they think about hong kong, they should think about a marketplace where they can access opportunities in china around asia we have 40 derivative products covering all asian markets in the world decides use hong kong as their listing base. shery: hkex executive director and ceo speaking to bloomberg's romaine bostick. we have more to come. this is bloomberg. ♪

shery: take a look at these movers in japan. we are seeing upside for toyota. we have positive calls for namor are joining this blueshift on the automaker. this as namor raises the price target to the highest among analysts, and we are seeing toyota shares seeing its biggest weekly gain in seven years, and this as we are seeing fears that toyota is lagging in a shift to electric vehicles dissipate a little bit. so of course they are joining the blueshift on the automaker and we have been watching softbank downside of more than 1%. we just heard from the founder declaring that he will go back on the offensive and tech investing soon. we have been watching the vision

fund. it's planning another round of layoffs this week. the source has about 13% of staff will be affected. let's get more details with our tech reporter. going on the offensive but also having to go ahead with those layoffs. >> right. so this move is part of softbank groups damage control after the company reported five quarters of losses at the division fund. and it does not necessarily contradict the remarks yesterday that, like you said, they are ready to go on the offense again . because even after the job cut, under the assumption they stop at 13%, the unit will still have about 300 people to make investment decisions. so, overall, they are trying to do things more efficiently going forward is the understanding. haidi: what's the outlook?

his supporters would be chairing the fact that he's ready to go back on the offense after years of dormancy, but there's some levels of execution risk. >> exactly. unfortunately his optimistic message yesterday seems to have been well received, and it is based on this growing optimism over ai. and based up on the things that are not looking that bad, this is largely because of the turnaround in global equity markets, which kind of boosts hope for a potentially successful arm ipo, but sentiments could change anytime, so we will see what happens going forward. haidi: our technology reporter with the latest on softbank and the potential turnaround.

plenty more to come here on "daybreak asia". 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.

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>> welcome back to daybreak

asia. shery: the country has set to be gone inspections to see how much money governments -- companies own -- oh in china. local officials will be forced to come clean about their so-called hidden debt. washington's efforts to repair ties with beijing might be at risk after president biden called xi jinping the dictator. china says it was a provocation. president biden was speaking at a fundraiser about the alleged chinese spy balloon earlier this year when he made the off-the-cuff remark. secretary of state antony blinken had just left beijing the day before or after trip aimed at resetting relations. haidi: metals and other

commodities under pressure a made uncertainty over china's stimulus plan. let's bring in sabrin chowdhury from bmi. great to have you with us. it has been a pretty difficult time if you take a look at iron ore or copper. is the market losing patience with expectations of china stimulants and how meaningful is it for fundamental demand? >> metal prices have been significantly down in the year to date as expectations built since november of last year. mainland demand for metals seeing a rebound failed to materialize in the first half of the year. the market is expecting a little bit of a stimulus going forward due to some market reports in the last two to three weeks that helped reveal the chinese government may be releasing a host of stimulus measures to

boost demand. that is largely still up in the air. nothing has been released yet and the capacity for china to actually release stimulus is limited due to financial risks, high levels of debt in the government and the private sectors, and whatever stimulus they release is likely to be very targeted and measured. it is not going to lead to a huge increase in metal prices. so metal prices will remain weak this year. haidi: how do you see the supply side of the equation when it comes to eb -- ev's impacting copper?

>> china remains the world's largest consumer and producer of metals including copper. the long-term demand for copper is strong due to its use in renewables and electric vehicles. it is a huge player. a long-term demand outlook is very strong for out -- copper. copper has gotten a boost, it is back up come along with other commodities -- backup, along with other commodities. ultimately china is the main games changer for all metals, including copper. it is the world's largest consumer.

we do expect dynamics in china to continue to drive the copper market. even the green transition demand, most of it is likely to come from china. china remains in the spotlight. shery: longer-term, when you look at technological advances such as artificial intelligence, does this have any impact when it comes to affecting the efficiency and productivity of some of these mining companies? >> definitely. that is going to focus around implementation of technology into mining operations, making mining operations more productive, efficient through the use of various technology, including a i.

-- ai. it is one of the trends we focus on. shery: it can really help the agribusiness. >> definitely. agricultural commodities are the main outperformer is this year. wheat prices, corn prices have started rallying in recent weeks as well. it tells us that food insecurity is only going to rise in the next few decades and this will impact africa's most vulnerable and all of these things will lead to farmlands incorporating

technology as we see less labor going into farming, less yields as the amount of land available for farming decreases. the technology is the way for farming, mining, you name it. haidi: sabrin chowdhury from bmi . we are about half an hour into trading. mizuho -- >> when you take a look at the asia-pacific index we are still in positive territory. a lot was made about the treasury yield curve inversion deepening to the 100 basis point mark. but some pointing at perhaps we could be overthinking the significance. it is a recession signal but

there could be other factors that play. we have seen investors buying up debt. that could be something else that is playing into it today. equities looking a little bit mixed. keeping an eye on the moves in currencies because we are seeing more firmness. very much focused on central-bank action. that could be another reason we see asia shrug off what is happening in other markets given that a lot of central banks are pausing their rates. the philippines and indonesia set to hold.

other asset classes in focus, like bitcoin. shery: let's take a look at cryptocurrencies because we're seeing fluctuations in bitcoin, surging back above the $30,000 mark. blackrock file for a bitcoin etf last week, and checked in this shut them -- injecting optimism. >> they have kicked up a flurry of activity to filed these bitcoin etf's. that race a pleasant question for bitcoin bulls. does blackrock know something? this has put bitcoin back above the $30,000 mark. it has jumped more than 20%

since blackrock's surprise filing last week. it is the third straight day of gains. three other issuers have now followed blackrock's lead to. blackrock has always had a little bit of a ability to read the tea leaves. so perhaps they know something here. some similar application on tuesday. all of this again kicked off by blackrock surprise filing last week. blackrock's etf would be the first of its kind if launched. the sec has rebuffed multiple such filings for two years. if approved, the atf would trade on the nasdaq. approval is not the question right now. it is why now? why all of these filings? is it a reason for bitcoin bulls

to get excited? the trend seems to indicate yes. haidi: certainly no indication that the sec has changed its tune. >> the sec has crackdown and declared two crypto exchange is illegal. perhaps there will be more clarity. it is not clear what is behind blackrock's filing. it was a bold move. it certainly got the market's attention. there are many that believed that bitcoin itself is now back on a long-term trend, although 30,000 is viewed as key resistance. we did see bitcoin back off a little bit in the past half hour. with black rock his hat in the

ring, will lead every other company that filed a one point for an etf jump back as well? observers say you will see a lot of filing in the days and weeks to come. bitcoin enthusiasts said that could only be positive at least in the short term. haidi: coming up next, our interview with columbia's finance minister. 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 haidi: a pretty muted session in

asia. we are seeing minus upside when it comes to trading in japan. the nikkei 225 up a little bit. a little bit of positivity when it comes to the kospi as well. sidney stocks down. another decline on wall street after the fed chair said higher interest rates will be needed to

tame inflation. the hawkish message something investors are still passing through. the biggest moves are on the fx side. more to come today. shery: we are talking about the boe, about turkey. one emerging economy we are watching is colombia because the colombian peso is now the best-performing one this year. i spoke exclusively with finance minister ricardo bonilla and asked him about the risks ahead. >> we are also facing challenges here. we are being impacted by reduced imports, particularly of intermediate goods and durable consumer goods. that is what we are struggling with.

>> the colombian peso has been very strong this year. how is this affecting your monetary policy path? >> we have reached an exchange rate that has stabilized between 4100 and 4200. this means benchmark rates will remain stable this month. currently it is above inflation rate. two or three months from now we will review when they may be appropriate to start lowering it. >> we have seen central banks in canada and australia pause hiking rates but resume tightening. might that happen in colombia? >> it is indeed a risk which is why it is expected there will not be any changes to the bench

rate -- benchmark rates this month. >> we have seen the fed and other central banks sounding very hawkish. how will higher interest rates affect colombia? >> more than what has happened externally, we are affected by the fact that the previous government limited our ability to lower inflation at the desired pace. while food and other goods are decreasing in price, fuel costs are rising. we need to ensure the increase does not negatively impact the overall inflation outlook. >> we have seen some of the reform efforts from the government scare investors. what is the risk on investment flows into local markets? >> the reform that most concerns

investors is the pension reform. the pension system already has two specific context. building a base puller system with its base. the discussion revolves around determining the eligibility criteria for vengeance. the threshold is currently set at three minimum wages. the second topic is whether there will be a savings fund. the answer is yes, there will be one. we will allow participation in the public market. >> the political climate in colombia has affected investor sentiment. will there be more stability? >> the idea is for the government to regain a parliamentary alliance to

implement reforms and make progress. the president has always stated he came to bring about real change. what we need to do is identify where those proposals stand and engage in public discussion. the reforms are approved by congress after all. shery: colombian finance minister ricardo bonilla there. it was interesting to hear his views about cutting interest rates finally. we saw inflation at the highest in about 25 years or so. the expectation right now is that inflation will slow to around 9% this year, but when you are looking at other economies that have started to cut rates, like costa rica, we are really watching where --

push into the under direction will start in these bigger economies. haidi: it continues to paint the pictures are about postma see this central endgame will be in the fight against inflation. we had the u.k. numbers coming out. still so overheated. the bank of england potentially has to pick up the pace when it comes to tightening measures. in the coverage of emerging markets we talk about opportunities. potentially we see further gains for emerging markets, even outperforming developed markets. but what are the risks here? shery: that has been really interesting hearing colombia as well.

we are talking about a government that for the first time it elected a leftist government. as i mentioned to the minister, batt has spooked investors. there is a reason why the peso strengthening so much, because the leftist president has been suffering from some political scandals and investors are thinking perhaps he will not be able to carry out all of his market unfriendly policies. haidi: just one of these idiosyncratic stories for emerging markets. we were talking earlier about -- there is always someone who is bullish on emerging markets. right now it is a qr. they say u.s. dominance of equity markets is about to end.

this is of course a connecticut based manager saying their model shows development nations up for the cheapest since the turn-of-the-century and will outperform the u.s. over the next decade. it is not just about valuations. that is kind of what you turned to. but there is a lot of interesting research that supports their case. if you take a look at the historic underperformance it will be hard to imagine that happening very easily. shery: one economy that has drawn the attention of emerging markets investors is india. prime minister narendra modi's state visit to the u.s. already proven productive with elon musk pledging to invest in the country.

>> i am a fan of prime minister modi. he really cares about india. it he is pushing us to make investments in india which is something we intend to do. we are trying to figure out the right timing. shery: prime minister modi also met with ray dalio, and general electric is expecting to sign a deal with an indian company for of the production of fighter engines. this is bloomberg. ♪

haidi: time is running out for the five people on board a submersible which went missing during an expedition to explore the wreck of the titanic. noises were detected. what do we know? >> as you said, time is running out. 10 hours or so of oxygen left on the craft. sounds were detected by canadian aircraft. they do not know what they are. they are deploying more

underwater devices. it is not clear what they are. they may be coming from the search vessels themselves. that is the focus at the moment. shery: that is that from daybreak: asia. key central-bank decisions are coming up. bloomberg markets china open is next. this is bloomberg. ♪ 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.

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