all of the work that we're doing, all over the world, and looks at the most effective ways, to get resources to them, to get services to them. the idea that we have saved five million people's lives, it's overwhelming. it's everything. shery: you're watching daybreak: asia coming to live from new york, sydney and hong kong. haidi: coming down to asia's major market opens.

the top stories this hour. a cautious open head after u.s. stocks fell. traders unwinding bets on rate cuts this year. bloomberg learns the u.s. treasury secretary is planning to visit beijing next month for the first talks with her new chinese counterpart. we are live at the world economic forum in china speaking exclusively with the circle ceo about harnessing the power of stablecoins and blockchain. shery: take a look at how u.s. futures are trading. a little bit of upside after we sell pressure on u.s. stocks on the regular session. you talk about profit-taking in tech. we are on a holding pattern in u.s. stocks trade analysts saying perhaps the next catalyst will be second-quarter earnings so we are awaiting that. our kids seem to be pricing out potential rate cuts coming from the fed. we saw the treasury rally fading perhaps later in the session and the two year yield ending unchanged while the 10 year

yield fell to 372. oil prices rebounding. you can see we are under the $70 a barrel level. let's get back haidi: to the top start -- haidi: get back to the top stories. sources telling bloomberg janet yellen is expecting to visit beijing in july. it comes with an executive order aimed at regulating certain u.s. investments in china close to completion. let's get to vonnie quinn. what to we know about this meeting? for a long while was on pause. vonnie: it comes on the heels of antony blinken's visit last week and treasury secretary yellen had shared a stage in paris with her new counterpart. just in april. these meetings are gaining steam.

there was a little bit of a delay. the chinese spy balloon incident did not help and escalating tensions about taiwan and russia and ukraine. so many things had delayed this revamp of u.s. china relations but it does seem the self diplomacy element is ramping up. we are expecting at some point president biden will meet president xi jinping in the near future that will be their first meeting since the and asia in november 2022. what we know for now is in early july the treasury secretary will meet her counterpart as the primary person responsible for economic policy. the timing is interesting. that is when we will likely get the executive order. not exactly at the same time. one does come first at the same time shery: that is a huge challenge that continues to create tensions in the relationship to what can we

expect to achieve in this meeting? vonnie: there is a two track diplomacy. at the same time as there is some decoupling or de-risking, there is soft diplomacy with lots of higher level meetings taking place. what we can expect is the reopening of talks. we talked about it last month and we continue to talk about it. it is the reparation of the last five years of deteriorating relations which started under president trump and continued under president biden who has cracked down on china in a lot of the ways and with his executive order will continue to do that. janet yellen did make a speech in april on the u.s. policy toward china. she said the u.s. will pursue policies to defend and secure its national security but those policies were not intended to hold china back. i'm quoting now, it she said a full separation of our economies would be disastrous for both countries. she is trying to make a point. china is open for business so there is tension.

shery: vonnie quinn with the latest on the u.s. china relationship. we are watching developments in russia as well. vladimir putin has condemned the leaders of the wildfire group -- the wagner group. >> dear friends, today i address once again all russian citizens. i thank you for your endurance, solidarity and patriotism. civil solidarity showed any attempts to organize internal unrest are doomed to fail. shery: hours after the wagner leader said he was not trying to oust the russian government but would keep his mercenary company going despite official efforts to shut it down. we were waiting to see market reaction from the weekend developments but perhaps it was a short-lived nature of what

happened. we saw a little bit of upside in will prices. of uti prices still below the $70 a barrel. annabelle, what are you seeing? annabelle: it is fairly flat. we are an hour out from the open in sydney, solon tokyo. -- seoul and tokyo. would be waiting until we got the next set of earnings. we are still recalibrating expectations around the fed. that has been something that is baked in to sentiment now. we understand the fed is not going to be cutting rates anytime soon. we are still keeping an eye on the japanese yen. still has been a little bit firmer in the session. had the comments yesterday from japan's currency chief saying he was uncomfortable and not ruling out any options when it comes to fx.

we did see the yen a little bit firmer and it has managed to hold onto slim gains. if you change on now, it comes down to the markets in china because this has been a big move. yesterday we saw stocks slipping substantially. the csi 300 down more than one and a half percent. this chart here, taking a look at the msci china which is more of a widely tracked index. it has been on a six-day losing streak. you can see only roughly 43 times we have seen this since 2013. the last time was april and october last year. the question, should we be buying on the debt? when you take a look at the data, if you bought at the instances, the msci china gained .4 of a percent. not much to entice traders into chinese equities at this stage. haidi: china is hosting the

world economic forum. some are gathering for the first time since the pandemic. stephen engle is with us in tengion. the political aspect of the relationship with the u.s. what is expected to be top of mind and what is the mood? >> this is day one. or just arrive have not really felt the mood yet here it i did have dinner last night with an unnamed china head of a major european company and he told me there is going to be a concerted effort by chinese authorities to try to attract foreign investment back into china. it has been a rough three or four years for everyone in china through covid zero or through the simultaneous crackdowns on the platform economy. on property come on online gaming etc. many foreign investors have been

burned of that is why we saw foreign right investment plummet during the first quarter. they need to regain the confidence they have built over the last four decades. i have been covering china for 33 years and it is the business-to-business relationship that has been the strong point of china's relationship with the united states. even that is strained. that is why you are seeing already this year not only now in the most recent weeks with antony blinken coming to beijing , now janet yellen coming early next month. you have had a jamie dimon, jp morgan chairman. you have had bill gates. you had elon musk. you had tim cook. they have come to china. they are trying to reengage on a business-to-business level. it is going to be the focus of the premier in his speech later this morning where he will likely make the pitch to an

international audience at the world economic forum known as the summer davos. he just came back from his first international trip. he went to germany. he went to france. same kind of message he will be bringing here i am anticipating. shery: chief north asia correspondent joining us from tianjin. exclusive conversations from the world economic forum coming up on daybreak asia. the circle ceo joins us at 7:40 a.m. hong kong time and the hkex co-ceo speaking to us live in the next hour. china's currency has continued to slide this by the central banks move to slow's decline with a stronger-than-expected reference rate. let's bring in bloomberg's fx and rates reporter michael wilson. we have a struggling chinese economy. not to mention looser monetary policy in the country as opposed

to other major economies. can that weakness be avoided at all at this point? >> that is a good question. i don't think it can because they have not done anything definitive. i suppose the chinese -- fixing every day -- they can fix it as long as they like. you can see the conviction of the market by the time the currency codes each day it does not close near its high. it closes near the low. the mood of the market as they want to stay short, onshore, offshore and until they see some sort of direct intervention. was talk yesterday of local chinese banks and spreading dollars around the market. that is a day-to-day definitive move by the bank.

still we have this weakness. unless there is a major intervention which is a lot more rare you would say. the pboc did not say -- the bank of japan, the only way they might turn it around and the short term is if they announced the much awaited stimulus package. some people are saying it may not occur until the meeting next month. they give themselves a bit of good news to announce at that meeting. at them -- in the meantime. the market will test out the barriers to 7.328 level in november. i think that is in play in the second half of this year. don't forget the big differential order and all of the onshore yuan is the fed funds rate in october was 200

points lower. if fundamentals mean anything, the pboc and the bank of japan have to contend with that differential. the risk is it could go high before it starts to top out the fed funds rate. that is one big anchor which is under pending -- underpinning the dollar. haidi: you mentioned the yen. we were looking at 145 as the levels where he might see an intervention. that is kind of what happened the last time. t. rowe price now saying 150 might be the level. >> a couple of good articles have come out of late. up to those levels where they were before where they did pull the trigger. 145, 146 and 150. but here we are again.

the backdrop of the fed funds rate looms large and the policy, japanese interest-rate policy is so well anchored. we cannot see that changing anytime soon. the jawboning we have seen this week is pretty much exactly that. it is pretty much the equivalent of certain countries who do a flight incursion into somebody else's airspace. there testing out the reaction function of the market to see how heavily weighted it is. if you look at the weekly gains and losses of the yen, i think for every gain, each gain is like 45 times any loss. the conviction is still there. the bank of japan and ministry of finance know that too well. for my money, where they started at 145 and finished at 151, they will not start until 151.

between 151 and 160, and that will suit them because -- one board member said -- if that changes the narrative, you will see the yen turned around click without any -- were turnaround click without any help of the fed. haidi: bloomberg's fx and rates reporter michael wilson. still ahead we take a look at the push to acclimate ready financial system. we have details from the paris summit. first, milford asset management tell this why they expect the climate to weaken except for in the u.s.. this is bloomberg. ♪

shery: u.s. futures are gaining ground at the moment. up to 10th of 1%. we have seen the fade in the ai frenzy we have seen in the past few weeks. tech stocks taking a little bit of a breather and perhaps profit-taking peered our next guest says it is time to be selling defenses and buying into the cyclical's welcome the portfolio manager at milford asset manager joining us from auckland. given of course the economic weakness many are expecting right now in the u.s., at the same time pricing out rate cuts given the hawkishness coming from the federal reserve, what is the best place to remain defensive? >> we think a combination of cash and assets in favors are looking to pick up some of the

cyclicals that have already been beaten up. whether that is discretionary names, some of the miners that have been beaten up on china's economic weakness. and looking to take profits of some of the tech stocks and defenses the market has crowded into. the general rule for the coming months is be wary of anything over owned and over loved shery: . how important is the liquidity picture when making these bets? >> quite -- rates seem to get a big focus. when the u.s. is going to hike and when they are going to cut. we think more important is the liquidity picture. the liquidity picture is a combination of the tightening by central inks -- central banks to get an account of the government and how much is coming out of the reverse repo facility. a combination of that is likely

to draw a liquidity draw over the coming months. liquidity has gone up immensely since october of last year when markets bottomed. that has been supportive of asset prices. that is going to make a much more challenging environment for asset markets and equities. beware the next few months given the liquidity picture. when you annabelle: look at stocks that are overlooked and over owned, you cannot get past -- you cannot ignore the narrative. how do you navigate that theme given how potentially overpriced things are right now? >> it is a good question. in our space, when you get these bubbles that emerge they'd a little bit and dogmatic.

probably some profit-taking peered probably technical rebalancing. leads to some continued selling of the stocks and ai stocks. ok to take profit. priced in all the benefits and more will benefit. trying to find the ones that may not be appreciated as ai beneficiaries. you have to look pretty hard and do your stockpicking work. haidi: as the dollar kiwi something you are constructive on? >> exactly. the u.s. included. it is a relative game in currencies.

we are seeing retail sales very weak. haidi: what about the china story? are you lacking any exposure to the valuations we are seeing? and have the china proxies like australia access -- which -- australian or the dollar? >> the reopening and disappointed. we do think as you move into the third quarter people should be getting more positive on china. that is largely because stimulus will come. may not be as big as some hope. you will get the inventory restocking cycle. china is driven by d stocking of industries and the big restocking of industries comes

to an end. we are approaching. he might find as we move into july and august economic surprise starts to turn for being on the negative to the positives. that will increase towards china. looking at copper and the material space and certain consumer plays that may benefit from the target. haidi: portfolio manager at milford asset management. always great to have you with us. you can get a roundup of the stories you need to know. that is on the terminal at dayb for subscribers. you can customize those settings so you get the news on the industries and assets that matter to you. this is bloomberg. ♪

haidi: some of the tech headlines we are tracking. removing 10 trading pairs involving tokens labeled as unregistered securities by the sec. to the assets to be delisted from thursday were used in transactions with the u.s. dd table coin issued by the tron dell reserves supported by digital asset entrepreneur. it has been a major marketplace for spa and derivatives trading off of digital assets. japan's government has unveiled a $6.3 billion deal to buy out and privatize js are taking direct control of the world leader in chipmaking compounds. government-backed plans to offer $30 a share in tender that are this year. the move could help tokyo expand controls over materials essential for making advanced semiconductors. the indian education tech firm

is seeking to claim -- she can to calm investors after missing deadlines to file audited financial accounts. sources say they have reached out directly to investors in recent days to assure them the start up will financially -- will release their financials finally and strengthen accounting processes. they have raised billions at the height of india's tech boom but is embroiled in a bitter dispute with creditors. eli lilly shares gained extended trading after expensing positive results for its weight loss drug. obese patients on the highest dose shared an average of 20 4% of their body weight after 24 weeks. it is already the most valuable drugmaker in the world on anticipation of these treatments. shery: take a look at how markets are trading. we are seeing kiwi stocks losing ground for a fifth consecutive session. they'll be the longest losing

streak since march. we had seen a little bit of strength in the kiwi dollar. we are seeing it holding steady at 6163 level. we are seeing a little bit of upside for sydney futures up 3/10 of 1%. we are watching the cave futures given the nikkei has lost ground for three consecutive sessions. seeing a little more strength on the japanese yen rebounding for its november low against the u.s. dollar. 20 more to come on daybr

shery: now to a bloomberg scoop on goldman sachs. we have learned the bank is adding to add montag to its board. he rose to second in command at bank of america after leaving

goldman 15 years ago. su keenan joins us with the latest trade this coming at a time when frustrations within the firm are becoming more public >> a lot of questions about the culture at goldman and it has only been a couple of weeks since the wall street journal did a story titled is goldman sachs at war with itself? the board is tapping a prominent goldman sachs veteran who was also a close ally and supporter of ceo david solomon. according to people close to the matter. while it is routine for boards to make changes and the board is meeting in india, the appointment of someone who once worked closely with solomon likely signals the ceo who also serves as goldman-s chairman is shoring up support. perhaps squelching any questions about what solomon's future might be as he approaches the five-year mark. montag stepped down in 2021. he left goldman to go to bank of america. any say he is responsible for

turning them into a powerhouse. this is being viewed as his grand return to wall street. the board at goldman, a close knit group and clearly high status. frustrations inside goldman have become increasingly public. a lot of focus on the bank and the timing of its move and an outline of the ceo at this point. haidi: what are some of the challenges ongoing for goldman? >> the question is, solomon being able to right the ship. goldman has a long history as a billionaire maker. it is a highly successful firm in terms of investment banking and trading and all around. investment banking has been under pressure of light. despite david solomon publicly admitting his mistake in the foray in to consumer banking and rapidly ramping up the firm's expansion which caused missed

deadlines, blown financial targets for the unit and importantly missed bonuses for many. some within goldman are saying privately they want a greater level of accountability. you can check out the stock price. by the time goldman reversed course in late 2022, billions of dollars in losses were hurting the bonuses any other divisions. in tapping the future, are secul be the first banker to be named to the board. haidi: su keenan with the latest. let's get you back to annabelle. we were looking at a mixed picture across asia. is that still holding? annabelle: mixed is pretty accurate. range bound is the other word. mixed, range bound and low trading volumes. there is not have a lot of catalyst to drive new direction at this stage.

some analysts thing we need to look ahead to the next set of earnings to drive a move in either direction. we have the interpretation or understanding of the fed is going to be keeping its rates on hold. that is fairly well priced in at this point. bonds still unraveling a little bit of that. in terms of the set up today, perhaps more of the focus coming through on what happens in china. that is the other major mover of china making up a third of the msci asia index. yesterday in the section because we came back from a four day holiday in china. it was that move to the downside. this as well taking a look at the moves in the yuan because we pushed past of the 722 level. it is not just the moves against the dollar because you take a look at the yuan against the other major trading. -- trading peers. the decline getting a lot more pronounced. this line at the top.

what level would it be that official start to intervene, express a little more discomfort? saying 7.4 is the one to watch. a lot of focus on the levels. there is also the yuan in focus as well. haidi: the world economic forum is returning to china for the first time since the pandemic. this week's event will bring 1500 participants from business, government and international organizations. stephen engle is in tengion with our first guest. >> that is right and he is a cochair of the annual meeting of new champions. he is the cofounder and chairman and ceo of circle. second-biggest u.s. dollar linked stablecoin. we are going to talk about some of the crypto space news and what you are doing in singapore with a new license. as cochair of the amn see, what is going to be the vibe when we

are back in person for the first time in more than three years? >> it is great to beyond shared i think it is significant. this the moment where a lot of the work is trying to think about how to restore economic growth post-covid in what ways does economic integration or disintegration happen, which direction are we taking. obviously asia is on the whole a critical part of the growth story and the economy right now. i see this as a moment to really reflect on what direction is economic integration taking >>. let's pivot as well to the stablecoin world but also in the cryptocurrency space with bitcoin. it has been rising steadily this year. it of more than 80% passed $30,000. there is the scuttlebutt about

blackrock. other rivals have applied for this u.s. dollar spot etf. the sec has given no indication it is going to approve that. what are you hearing and why is bitcoin rising like this? >> just broadly, the digital stores like bitcoin remain compelling as a hedge instrument in the context of continued persistent inflation and weakening currencies. there are some macro factors that continue to be supportive. in terms of regulatory approvals, things like more mature market structures that would support something like that, progress is being made. you have mature spot markets. you have mature custody infrastructure that is well regulated. you have good market surveillance. i think many of the things that have been concerns in the past

are being addressed and suggest these kinds of products are more likely to be approved for general investor access. >> you did get a license in singapore for stablecoin. what is your outlook for asia and are you seeing a shift in this part of the world as there is -- and hong kong is coming up with the regulatory framework by next year for a stablecoin. >> asia is a huge area of focus for us as noted. we were recently -- we recently received a major payment institution license in singapore. that is going to allow us to more fully distribute usdc in the region. we see in our missed demand for digital dollars in the emerging markets and asia is central to that. we are seeing steady progress. obviously the singapore regulators have been at the forefront of thinking about this. hong kong clearly looking to establish itself as a very

significant center for the digital asset markets and for stablecoins and we are paying close attention to that. >> japan as well. they have their stablecoin law come operative june 1. mitsubishi ufj financial talking about hooking up with partners. are you in talks? >> i will be in japan in a few days. we are very encouraged by all around the world every major market. stable coin walls are coming into place. what that signifies is this kind of digital currency is about to become the mainstay of the global financial system. >> are regulators and central banks coming to grips? >> i think they are and the lesson is private-sector innovation in digital currency with fiat is happening much faster than public innovation in

that space. central banks know this is happening. this is a new area of private-sector innovation. they need to regulate that. it will continue to think about things like cdcs and the focus is on the market is moving forward. need to make sure they're are good rules around it. it is encouraging further commercial growth of the sector. >> where in asia will become the digital center hub? japan has very interesting developments we talked about. >> what we are seeing happen is all the major financial market centers of the world other be singapore, hong kong, tokyo, increasingly uae, paris, london, all of these markets are moving forward in parallel and a think they are looking to make sure they have sound frameworks around this. i don't think it is one at the expense of the other. i will be served different dimensions of the economic system should >> you have been in favor of more regulation. especially following the

collapse of the smaller banks whether to silicon valley bank. you had a $3.3 billion exposure which took a hit down to $.88 which is one dollar. what kind of regulation must be the priority? >> we have been advocating for years for this. a full reserve model where the assets can be a mixture of cash or overnight cash at central banks short duration treasury bills or equivalent government debt. if you have that foundation as the asset base and that is regulated and looked after by banking supervisors, we will have the safest fiat digital instruments in the world. we are pushing for that and that is increasingly what we are going to see around the world. >> i have been reading some of the speculation that following the sec's crackdown on binance and coinbase, stablecoin could

be the next in the crosshairs. what happens if they overshoot on regulation? >> if you look at a global level the financial stability board, the way in which governments are looking at this, the uniform view around the world is payment stablecoins are really the domain of prudential supervisors. that seems to be the focus in the united states from the white house, the fed, treasury. or could be stablecoins that behave in different ways which might be subject to securities or commodities regulation. clearly these payment tokens operating as payment systems clearly are not going to be subject to sec. >> in>> 20 seconds or less, china, any opportunities? >> the question of what is happening in hong kong is maybe a proxy for how do these markets grow in greater china? >> we could go on and on. this is a great conversation but we are going to have more conversations on day one at the next couple of days in tianjin.

shery: with all of those conversations including coming up, bonnie chan, hkex co-ceo joining at 8:15 a.m. hong kong time. up next we examined the success of the paris summit and that overhauling the global financial system to achieve climate goals. analysis with bloomberg any affect just ahead. 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. so they're talking numbers with their merrill adviser.

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>> inflation is the beast all central bankers whether they were a green jacket or not want to tame and discipline. number two, because it affects our balance sheets. whether it is a 3 trillion or 7 trillion balance sheet, it is affected by climate change. shery: christine lagarde speaking at the paris climate finance summit over the weekend. dozens of world leaders gathered to discuss getting billions of dollars in climate financing to developing countries. key outcomes included a program to provide quicker access to funding and a catastrophe toolkit to avoid the climate deathtrap. there was talk of hitting a 100 billion other goal for funding carbon cutting projects,

proposals for international taxes and calls to reform element banks. let's bring in bnef's head of asia pacific. research has been showing renewable technologies are getting cheaper so why do we still need to overhaul the global financial system to tackle climate change? >> indeed. as you mentioned, thanks to declining costs of solar and wind since late 2017, the benchmark for cost of electricity generation, building a new power plant have shown solar and wind are on average globally cheaper than bringing new power plants. today in over 80% of the world if you want to build a new source for next generation, solar or wind would be the cheapest option. in over half of the world, solar and wind are so cheap if you build a new solar or wind power plant the cost of generation would you the -- would be below

running the cost of an existing thermal power plant. the decline in batteries has meant for some applications -- for frequency control or commercial vehicles in europe we are already at a point where these technologies are cheaper than their fossil fuel counterpart. having said all of this, if you do a scenario where we allow the world's energy system to evolve purely on car and technology cost trends we would still not be able to hit our goal of keeping the average surface temperature rise to below two degrees. the reason for this is twofold. one, beyond power and road transport for many sectors such as steel and cement, we still need a lot of support to scale up technologies for decarbonizing the sectors. in many countries, even though we have cheap technology like solar and lithium-ion batteries, because of the burden they are

dealing with, they cannot take advantage of these technologies today. haidi: going into the summit there was a lot of focus on whether they would be lending infrastructure, mobilization of capital that is needed particularly for the poorer nations. where there any tangible outcomes? >> we saw a good example the best one being the that restructuring offered to zambia. we saw senegal become the fourth country to sign on to the energy transition partnerships after south africa, indonesia and vietnam. a program put together by the g7 and private financial institutions who have signed on to the financial alliance for net zero. new funding flowing. when hundred billion climate finance target originally promised by 2020. there's been some modest progress there. we heard some my the g7 are expecting the target would be hit in 2023. we will have to see once the

final accounting is done. shery: so what are you watching next? >> some of the interesting new proposals such as president macron's new international taxation on marine aviation and financial transactions, this is a proposal we have to see whether the relevant bodies -- the international organization, whether they will take up the proposal. some countries have signed on to it but it remains to be seen what are the key stakeholders who actually support it. a good milestone to watch for is the g 20 summit in early september in india. this will be a good check in point on the way to cop 28 set to take place in november. if we see more momentum on the proposals, this is boding well we will see more tangible results at the end of the year. haidi: bloomberg nef head of

aipac research. the international sustainability standards board has unveiled the first set of global esg reporting standards. they include voluntary frameworks for climate and sustainability reporting. the rules are intended to create uniform standard for companies reporting on esg. glitters in the u.s., europe and asia are trying to bring order to a market where greenwashing has become increasingly widespread. be sure to tune in to bloomberg radio to hear from the days big newsmakers, get in-depth analysis from the daybreak team. we are broadcasting live from our studio in hong kong. you can listen in fayed the app, or bloomberg.com. this is bloomberg. ♪

shery: nws holdings will be taken private. this is a company that operates a wide range of businesses including toll roads, commercial aircraft leasing and construction. we are hearing child thai folk enterprise has offered nine dollars 15 hong kong cents per share for the rest of nws. we are hearing the enterprises who will buy nws shares that are not already held by the company and that the new world and unit and ws holdings will resume

trading at 9:00 a.m. on tuesday. haidi: accenture says it is seeing unprecedented interest in generative ai among company executives. the ceo told us more about how the company and others should ensure the technology is used responsibly. >> most of the issue is not the jen ai itself. it is about data. over half of our clients when we talk to them say data is the biggest challenge. they're spending a lot of time helping our clients get ready to use gen ai. >> how do you deal with the issue of ethics are responsible use of ai? i know you have been talking about this for some time but what are you saying to your clients when they say how do you make sure we use this responsibly? that is a lot of concern in governments right now. > the good news is companies and technology companies, companies like myself and governments share the same goal to make ai and use it

responsibly. i asked one simple question. i say to every ceo, if you can't walk out the door, pick up the phone and they can tell you exactly where ai is used and what risk it is, what you are mitigating and what you are monitoring. we have a program at accenture we use at accenture -- we use. we are very focused on equipping companies moving on principles to action and systemic protection around responsible ai. we are passionate about this. we are hoping clients at as a way for us to make revenue because we believe it is the right thing to do and it is a big unlock for using ai for all of its potential. >> one of your great strengths as you can take ai and explained the clients what it will mean for their business. what does it mean for

accenture's business? does it mean you will not need as many people or will they be doing things? >> besides the obvious, it is a big opportunity to help clients, it is a continuation of the journey we have already been on. we use a tremendous amount of ai today, productive ai, diagnostic ai because our business requires us to be more productive every year. for example, over the last nine months, we have automated in our operations business almost 13,000 jobs and we rescaled those people to do other jobs. we have this continuous and is one of our great strengths, continuous ability to create talent. we are excited this is going to give us more levers to improve productivity and then be able to upscale ever people to do value add things like help our clients use responsible ai shery:.

the accenture ceo speaking to david westin. the market opens in sydney, seoul and tokyo are next. this is bloomberg. ♪

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>> this is daybreak asia, counting down to asia's major mark opens as we saw some more profit taking here in the wall street segment, we'll see how it

sets up asian trading as we're hearing from sources that secretary yellen may be visiting china early july for the first high level economic talks with her counterpart. >> we continue to wait for new of any potential stimulus measures out of chi in a, this as we continue to see that profit taking but question marks over the i.r. trade. let's get you to anna belle for market hope. anna belle: the other big part of the puzzle for japanese stocks could be quarter end balancing because that is certainly in focus as we head in to the end of june here. we have the open of japan, korea and australia and at least some estimates out there saying that quarter end balancing in japan by the huge pension funds that make up a large part of the market there could spur about $26 billion in selling. that's according to one estimate. today we are seeing the nikkei

225 trending low fare second straight session. in terms of what else we're focusing in on today, still around the japanese yen. we have been tracking the weakness in this turnery driven by that gap between the b.o.j. and the fed and we are getting closer to that 145 level even though we did see further verbal intervention coming through from japanese government officials on monday, and that led to a little bit of stabilization in the weakness that we've seen. let's change on because the open of korea also upon us. again as you say it is down to the news that -- moves we saw in the wall street session overnight, the selling that came in a lot of pressure on heavy big tech giants there. so we are threak moves we're seeing. a little weaker in the session. not quite the magny teufd the declines, again future there is starting to firm up slightly. the korean ewan -- yuan trading down slightly.

we are still sitting past the key 1300 level. changing to what we're seeing in australia at start of trade, the moves so far, can expect it to stay fairly ranged, not expecting a big jump in futures but the focus in australia a little bit central bank driven, we're still seeing a delay for who will be the next r.b.a. governor. they're saying it'll reduce the chances to be from someone from an international background. it could be someone. aussie stocks coming online flat, we'll mark any moves throughout the session and watching oil as well, tracking a little bit higher but the focus from traders now really shifting back onto the growth concerns and away from any sort of instability from the events in russia over the weekend. shery: let's bring in our next guest who says new and existing tail winds will tip the balance

in asia's favor in the second half, with us now othe regional c.i.o. of global wealth management, kelvin great to have you with us are. you expecting the regional underperformance we saw in the first half reverse? and who will be the biggest winners. kelvin: we think the markets will reverse in favor of asia, in the first half of the year u.s. dollars have been particularly strong and in second half of the year we do expect the rates to actually peak and therefore their answer for the $to actually weaken against much of the currencies that should drive up performance of markets given the fact that the inverse coalition between asia, japan and the dollar has been very, very tight over the last decade or so. >> when it comes to emerging markets in asia, when are you expecting that consumption boom to make a comeback?

>> asia has the benefit of having lower inflation than the european union or the u.s. markets. and as a result of that, interest rates in asia does not have to trend higher or as high as what we have in the u.s. and the e.u. so for that matter we do think central banks will start cutting interest rates in the fourth quarter of this year. we do think asia has a slight edge with regard to consumption because of the fact that with rates climbing -- trying to trend lower, the income, actually start rising on the asian consumers. haidi: how are you feeling about the broader outlook when it comes to china and does it hinge on whether we get more meaningful stimulus moves from the government? kelvin: yeah, i think the chinese market is lucky to be in a good place for the time being, we don't expect the chinese government to unleern any

bazooka-like changes on a short-term basis. despite the fact that the economy has slowed down over the last couple of month, it's still on track to keep growth above 5% this year. the slowdown is something that is manageable, and unless we get rates, con sums is going to be quite weak. the overall prognosis for china, unless the market is a concern. if you look at valuations, it is attractive at this point in time. first quarter results for the market has been quite good in our view. shery: china is where you're looking for they have not

reached the levels of other darlings. kelvin: it's not just that it's cheap, it is below historical valuations. that's making a discount for the equity marks. but you don't buy marks or invest in markets just because they're cheap. we think china on a six to 12 month basis looks attractive. s that good time to get into the chinese market. at the same time you have to be patient because the catalyst will only come once the rate comes off and people are more confident in job prospects. that will spark some spending where the savings are concerned. shery: we were talking to the bank for international settlements today and they were telling us because of the economic recovery in china disappoint, the correlation when it comes to chinese yuan that has for a long time served as an anchor for emerging mark

currencies may not be as strong. take a listen to what the general manager had to say about the chinese economy. >> the growth -- softness in the growth of china implies lower economic growth and that makes life more difficult for emerging markets. that means that the tightening of monetary policy can have even more of an impact in economic activity locally. shery: what are the broader implications for higher for longer global central marks and you have the economic recovery in china staaling and perhaps the yuan not acting as the anchor currency for emerging markets anymore? kelvin: i think if we look at the global economy and the numbers that's coming up from the asian economies, for example, singapore, korea, japan, malaysia, thailand, the numbers have been slowing down. numbers have been pretty weak over the last two or three months. that in turn is an indicator

that with the central banks tightening so much in the laght 12 to 18 month, the export, demand for asian exports at some point will slow considerably. i think we're going through that at this point in time. unless we get some breathing space with the rate hike, it'll be very, have hard for the global economy to impose growth levels. that's one point we need to take up. that in turn has affected the chinese economy. in the previous cycles, we often expected the investment, the exports to pull the chinese economy up. this time around we have to rely on the service industry. the service industry is not moving given the fact that unemployment is so high. they are sitting on their savings and not spending at this point in time. this is the only potential catalyst that could come and spark a recovery of the global economy. unfortunately at this point in time with rates trending higher in the u.s. and e.u., the sprob that i think where the equity markets have been sent they may

be stuck in a tight range for quite some time. haidi: when it comes to southeast asia debt, do you have sort of an apoach to why this is and how i guess enduring this trend could be given that it has outperformed high yield investment grade in other parts of asia? kelvin: southeast asia has been beneficiary of the china plus one strategy so the same kind of habit of f.d.i.'s coming through, countries like indonesia, and that where the currency is concerned you're seeing a lot more imploadz, compared to prepandemic where a country like indonesia was seeing deficits with regards to accounts. now on top of that you have lower than -- lower interest rates in southeast asia. that is also again something that has been appealing because of the fact that, you know, inflation is well under control in most parts of southeast asia.

we don't have the core inflation issues with regards to labor that the e.u. and the u.s. economy actually has. so on top of that, with the influence coming through, it is in a sweet spot with regards to attracting influence from global international investors at this point in time. we do think that will continue for quite some time given that covets are continue thunder and lightning thoan policies of economies, where infrastructure has been very, very helpful to what's continuing inflation over the last few years. we believe the debt will continue regardless of who becomes president next year. haidi: kelvin, always great to chat with you. let's get you back to bell in hong kong to take a look at early movers. annabell: we're 10 minute into the trading session for japan, korea and australia, a few sectors we're tracking where the first line comes down to any

tesla supplies in japan and korea, this was one of the biggest movers on the wall street shetion, down around 6%. that stock still looking a little bit weaker in after hours trading tesla. but the main reason for that was goldman sachs because essentially they joined a list of brokers turning more bearish on the stock. what is really driving that exactly is concerns that perhaps the links that investors are drawing between tesla and being a key beneficiary of a.i. could be overblown. also the stop itself is perhaps overbought -- stock itself is perhaps overbought so goldman sachs joining the likes of barclay's, morgan stanley, downgrading the stock there. their weighting has been switched from buy to neutral. we have seen looking into supplies for tesla into today's session. let's change on. another sector we're focusing in on today, crypto names in japan and korea. these are late bit under pressure. did follow what we had on wall

street overnight. we saw crypto stock there is falling. bitcoin just slipping a little bit from its recent peak around 1%. it still is fractionally higher. holding above that 30,000 level. but investors perhaps really starting to take stock of the optimism we're seeing around these spot of bitcoin a.t.f.'s after that filing for blackrock. nothing approved just yet. shery: coming up, bloomberg has learned that u.s. treasury secretary january el yellen plans to visit beijing in early july. more ahead on why both sides -- on what both sides hope to achieve from that visit. but first, our exclusive interview with bonney chan from the world economic foreruk. back live next. this is bloomberg. ♪

haidi: the world economic forum has returned for the first time since the pandemic. our next guest is there with us. stephen: an exclusive conversation coming one our guest and as the coe-coo of the hong kong exchange, bonney chan. thank you for joining us here at the world economic forum. we all know it's been a tough couple of years for the hong kong stock exchange and market in general. and the pipeline, i was -- your boss has talked about the pipeline. but when are we going to see that pipeline turn into reality? i know a lot of it has to do with market conditions and the like but are you seeing a lot more interest, in particular from chinese companies? bonney: thank you for that question, thank you for having me, by the way. in terms of the pipeline i think

it's fair to say there's a healthy pipeline we're seeing lining up to hong kong. it's true ta market conditions have been pretty soft. and this is not a hong kong specific phenomena. if you look at the global i.p.o. table for example, in the first five months of the year, 2023, in fact, globally we've seen both a reduction in terms of the number of i.p.o.'s, which is dropped by 8%, year-on-year, same period, and the fundraisers actually dropped 61%. this is the global figure. compared to hong kong for the first five months in terms of number of years we've seen an increase inform 33%. so -- stephen: but the value has been lower. bonney: the value has not been as strong but i think there's a natural explanation of that and that's simply because this is -- businesses don't want to sell their stock cheap. i agree that when the right market conditions come we should

see a very healthy rebound. stephen: why haven't we gotten a single listing under the new listing rules for specialist companies. we're talking a.i., you've got to take advantage of the a.i. boom and semiconductors which are in the spotlight, in the cross hairs because of geopolitical wars? so what's happening? bonney: we are excited about the new chapter, chapter 18-c, specifically tailored for specialist technology companies and covers a lot of areas including ample i., new materials, new energy. now the reason that we are still yet to see the first following is the new rules took effect end of march, on the 31st of march, you know, the new chapter took effect. as the rules in hong kong work, you need to, for the companies aspiring to list under this new chapter, they need to appoint sponsors, investment banks, to help them with the listing and there's a minimum two-month period for the new sponsors to work on due diligence before

they can get a following. so you know, without actually giving away, you know, what is in the pipeline -- stephen: no, we want you to give it away. bonney: i feel we should be close to seeing the first offerings. steven: how many would you think? you'd think these countries would want to raise the necessary capital because the push by the government is so intense by a.i. and semiconductors and other strategic industries? bonney: they need the capital because these area are capital intensive areas and they need it to help them grow the companies. what i can tell you is in the next few days we are here, we have been contacted by a lot of these companies wanting to explore a chapter 18-c listing. so i have pretty solid calendar in the next three days meeting with prospective companies. if that's an indication of what we may see in the second half of the year, i think we're very hopeful. stephen: so you're meeting with

a lot of these companies. have you seen many more tech companies in particular come to you and say we are exploring this for perhaps the second half of the year? because logistics now is probably one of the six new from ali baba. others must be looking at these kinds of spinoffs as they're giving mandates to fundraise themselves. bonney: absolutely and we have been proactively marketing to them. i forget the number of these conferences and seminars i have been to where a lot of these companies came to want to hear about the new chapter. in fact it's not only the companies we have met with investor, you know, private equity funds, having the portfolio companies trying to explore the new chapter we met with a lot of advisers, lawyers, accounting firms, investment bankers, all telling us very clearly that they do

want to, you know, explore listings under this new chapter. stephen: i know you can't give me a number of companies that will list, because it's market conditions, but when do we think we'll get back to prepandemic levels? the i.p.o. market slumped 18% in 2022. countries like indonesia, their stock market, new listings more, because they're mineral rich and have a lot of companies in the lithium ion battery space and the like. hong kong has lagged, hong kong is not used to lagging as far as the i.p.o. market in this part of the world. could 2024, 2025 be a return to prepandemic levels do you think for new listings on a value basis? bonney: well, i don't have a crist call ball but i would say that we certainly see a lot of demand and as i mentioned the pipeline is healthy. whether we return to the same level in 2024 or 2025, it depends a lot on market

conditions and investor sentiment. but we in this conference right now, this is all about entrepreneurship driving the growth if we believe the economy is going to continue to to grow, clearly we will be looking at the perfect point, hopefully sometime soon. stephen: you just showed me the video of nicolas in the hong kong taxi, getting off at exchange -- getting on in hong kong, getting off in new york in the iconic red taxi. you opened the office in new york. what do you expect to achieve there? to attract listings back to hong kong? or to get investors in the united states to understand that hong kong is still a viable place to invest in stocks but also use the connect to mainland china? bonnie: we always aspire to ebltion up and down our international footprint. hong kong is an international

center and have an international exchange. with these international offices what we hope to achieve is first of all being closer to our clients and being able to serve them in the same time zone they are in. so for the new york office, for example, the initial staff is mostly site face, sales and marketing colleagues, but we're going to expand it so we'll have colleagues covering international issues. to your point about marking to them so they can consider listing in hong kong, i think we do have a very compelling thing to offer to them which is the connect program. as you know, since march this year, we are able to now include international companies into stock connect and this to us is a game changer. we'll be the only stock exchange able to offer access to the very first core of investors in mainland china. stephen: i could talk the whole

time about stock connect and what's next, what's going to be offered but i have to ask you about the middle east as well. i know hong kong trade delegation just came back from riyadh. there seems to be a lot of interest and right now the sovereign wealth funds in various middle eastern country they allocation to stocks in hong kong is not that great. what's the outlook there to get that connection with hong kong and the gulf nations? bonnie: we have recently signed an m.o.u. that covers, from fintech to e.s.g. to potentially cross listing. i would say the potential is very real in the sense that there's a lot of interest, right? right now, we are seeing a very big delegation coming from the middle east and what we want to do is seriously explore these possibilities. now if you look at the numbers, you know, as we know, talk about the sovereign funds from the

middle east, their current allegation to china is actually not very high. and they do aspire to grow it. i've heard numbers saying by 2030 growing it to 10%. considering that against -- stephen: they're at about 2% now? bonnie: correct. and they are growing the a.u.m. at a very, very fast pace if hong kong captures just a fraction of it i think that would be a good outcome. stephen: i think some of you executives had meetings in the middle east. bonnie: few is an understatement. our c.e.o. has been going to the middle east a lot recently. i think in the last six to eight months he's been there at least three times. i think this two-way flow we're going to see more and more in the near future. stephen: bonnie chen, thank you for joining us on bloomberg.

haidi, shery, back to you guys. haidi: we'll have more conversations from the world economic forum. chinese premier is set to speak there in a few hours. stay tuned for our live coverage from 10:00 a.m. hong kong time. this is bloomberg. ♪

♪ haidi: take a look at asian effects. interesting. we have been focusing on the weakness in the urine, but more broadly but the weakness in the japanese yen, but on the dollar index we are seeing weakness, that indexes at the lowest in a year. look at dollar-yen, 143 .43 is very r. 144, 145 is where we have

been throughout the year. t. rowe price says there will be interventions once we get to the 150 per dollar. the aussie dollar is at 6677 cents. just moderating their gains. one of two currencies that actually gate against the u.s. dollar in that session. much more to come here on "daybreak: asia." this is bloomberg. ♪ we moved out of the city so our little sophie could appreciate nature. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes) (chainsaw continues) (daughter screams) let's pretend for a second that you didn't let down your entire family. what would that reality look like? well i guess i would've gotten us xfinity... and we'd have a better view. do you need mulch? what, we have a ton of mulch.

>> dear friends. today i have once again -- i thank you for your endurance, identity and patriotism. civil solidarity showed that any

ransom, any attempts to organize internal unrest are doomed to. haidi: president vladimir putin there condemning the latest on -- the leaders of the wagner group in his first public comment since the aborted mutiny. our guest joins us. putin called them traders, wagner -- prigozhin says it wasn't an attempted coup. what happens from here? bruce: there is an interesting distinction that president putin made. he said the organizers of all of this betrayed the country, clearly an indication that he does not want to let prigozhin of the hook. at the other hand he did say to the wagner fighters they have options. they can either join the military, go home, or move to belarus. so it seems like putin is trying to figure out a way to go after

the leader wagner, prigozhin, while keeping the wagner fighters on his side, so to speak. right after his speech, president putin met with the defense minister, sergey shoigu, that prigozhin been highly critical of. prigozhin released an audio message on telegram, again insisting that this was not insurrection, this was not a mutiny, that this was just a way to expose all of the mistakes that he says that the defense ministry and others have made in keeping russia unprepared. he also pointed out that civilians were very receptive to the wagner forces as they were moving around, saying that they were greeted positively by russian people. we don't know where prigozhin is

still, he is supposed to be going to belarus, according to the agreement brokered by the belarusian president over the weekend. however, at the moment, it is unlikely whether he is actually there. shery: we actually heard from president biden himself talk about this uprising, sort of trying to preempt any speculation that the west had anything to do with it. bruce: yes, both president biden and other western leaders have said that this is an internal affair, that this does expose all the weaknesses and cracks within the russian leadership, but they insist that this is not something the west had anything to deal with. we also know that it is likely that there will be an additional weapons package for ukraine, 500 million dollars of additional weapons including patriot missiles, stingers and other types of missiles and munitions going to ukraine.

a defense department spokesman says we are likely to hear more about that this week. shery: bloomberg reporter bruce einhorn with the latest on russia. and of course we are also watching u.s. china relations. sources telling bloomberg that treasury secretary janet yellen plans to visit beijing in july for the first high-level economic talks with her new chinese counterpart. vonnie quinn, there are many challenges with this relationship. what is usable thing to achieve here? vonnie: at least there are talk spring to be happening. we are hearing bloomberg sources telling us janet yellen will visit in early july. we knew that this was coming, we knew that yellen was going to visit her counterpart leigh fong, but we didn't know when. and of course the incident, the spy balloon incident did not help, and also just the idea that tensions had been ramping

up literally in the last five years. anthony blinken, the secretary of state, visited last week, the first of high-level trips to china. we are expecting at some point that president biden will also meet with president xi jinping in the near future, first time since november of 2022. but in terms of reasonable outcomes, it is difficult to know if there will be any optics here. janet yellen could always talk to her hunter part about any concerns, like for example, global climate change, macroeconomic stability, and so on. we know that is not really the reason, it is to begin at the reparation of relations that have been deteriorating for the past five years. haidi: what kind of concrete deliverables or achievements can we hope to expect? vonnie: we will definitely get the optics in the pictures. but the interesting thing is

that whatever happens, we are also hearing there will be an executive order coming from president biden that has been in the works for a few years now. but it will be on outbound investment into china which will cover things like semiconductors, artificial intelligence and quantum computing and it could be ready by late july. on one hand there is the soft diplomacy of the meeting between treasury secretary geithner and her counterpart, but then there is the harder diplomacy continuing in the background. i think the most we can hope for out of this is that this will continue the talks at a senior level and that talks will not break down again as they had five years ago when there were no meetings between high-level officials of the united states and china. haidi: bloomberg's vonnie quinn there. let's look at china holding the world economic forum, first time since the pandemic.

our chief north asia correspondent stephen engle is in tianjin. in person once again. stephen: yeah. we were awaiting this speech later this morning at around 10:00, one hour, from the premier li keqiang. and of course the diplomatic exchanges are picking up between china and the united states with anthony blinken going there and now potentially janet yellen going there in july. this is on top of the business connections we have already seen with jamie dimon, elon musk, bill gates, tim cook, they have made trips to china in the last couple, of months trying to get what has been in the last 30 years or so, the strongest part of the relationship between china and the united states, that is business-to-business ties. but the market has soured a bit. the chinese economy has not picked up as many predicted following covid zero.

there are also the crackdowns on consultancy companies that have put a chill on western investment. fti was down in china in the last quarter. but there's also this league of massive market with great potential. . so you are likely to hear from li qiang, he will speak about china is open. china welcomes foreign investment. and you will see, as well, the executives who have come here for the "summer davos." they would be talking about opportunities, but there are also those risks. a country like new zealand is a prime example, its prime minister will also be here and have seen the cautionary to posed by australia in that diplomatic fight with china. they saw their exports to china dwindle in some key areas. so it is a fine line that the new zealand government has to walk as well with china, because china is a number one buyer of new zealand goods.

so again, it is just one example, a microcosm of what different countries and businesses have to deal with in the new paradigm shift in china. shery: chief north asia correspondent stephen engle their in the engine. our exclusive interview with the general manager agustin carstens for the bank for international settlements, is next. this is bloomberg. ♪ >> liquid cash, in some instances. we probably need a governance mechanism that anchors trust in the imf and the rule. -- e. the queen sleep number 360 c2 smart bed is now only $899. plus, 48-month financing on all smart beds. shop now only at sleep number

shery: ahead of the -- the head of the bank for international settlements says emerging markets anticipated the cycle of high interest rates well, and learned the cycle from previous editing as facades. however, he tells me that slowing growth in china is making it difficult for ems. here is our exclusive conversation. augusti: i think emerging markets anticipated the cycle of high interest rates relatively well.

many of them learned a lesson from having previous accidents in previous episodes and therefore they started their tightening early, as a matter of fact, even before some advanced economies. some emerging markets economies have already either paused in increasing dress rates, and in some cases, even started decreasing. what is important is for that progress in increasing inflation -- decreasing inflation to consolidate itself. they have to make sure that they get there as soon as possible. shery: inflation is easing, but it seems also, growth challenges rising. china is a key emerging economy, what are the implications of its disappointing post-covid recovery? agustin: definitely that means

additional headwinds for some emerging market economies. not only in asia, but also in latin america, trade relationships with china are very, very important. therefore, the softness in the growth in china implies lower economic growth and that makes life more difficult for emerging markets. that means that the tightening of monetary policy can have even more of an impact in economic activity locally. shery: the chinese yuan is also very weak against its trading partner currencies. will the yuan continue to play an anchor role in em currencies, and also pressure the rest of the e.m. group? agustin: well, certainly, the softness of the yuan might affect some countries.

but i think it is not that significant. if you take -- yes, there has been some weakness in the margins, but hasn't been that pronounced. at the end of the day, what i would say about the renminbi is throughout the cycle, it has been a relatively stable currency. it doesn't blend itself into white variations as do other currencies. shery: the exchange rate is usually a key mechanism for transfer of risk in ems. will it worsen the fiscal and debt sustainability issues in some of those economies? agustin: what i would say is that in many emerging markets, they are very clear that a very important aspect to keeping inflation under control -- obviously, in many cases, high inflation, but not out of control inflation, means you

have to have some control on your exchange rate. something that i think we have seen through this episode of very high advanced economies' interest rates, and also emerging market high interest rates, is that the exchange rate of emerging market currencies has behaved relatively well. as a matter of fact, something that 20 or 30 years ago, you would say would have been unimaginable. two of the main currencies that have appreciated against the dollar is the brazilian riel, and the mexican peso. most of the emerging markets have been more resilient than many advanced economy currencies. haidi: the manager for the bank of international settlements, augustine carstens there. let's get back to an umbrella with a look at how the markets are faring. annabelle: 45 minutes into the session for japan, korea and

australia we, are starting to see a few different things emerge at the start of the day's trading. i would say that this is very range-bound trading. volumes generally are off the 20 day moving averages. for instance in emerging market currencies, they are starting to trend to the downside versus what you see, again, very range-bound. still seeing moves higher for commodity-linked currencies like the aussie dollar, the swedish krona. some are moving to the upside in the session. the other focus today is what is happening in the tech space. you see the coloration between the nikkei, and the kospi in south korea, dessert reflecting concerns that we have that the fed is not going to be cutting rates anytime soon. we sawtek among the big laggards -- we saw take a march the big -- we sawtek been a marked the big laggards in the previous

session. this company, jsr, this stock surged more than 20% in the prior session. what has happened is that it is the subject of a buyout offer from jic. this deal is worth about $6 billion. it is going to be through a share buyback at the end of this year. the shares are priced for tender offer which should come through by september, but the expectation will be $4,351 apiece, just rising up. we saw a big jump, as i said, more than 20% yesterday in jsr. shery. shery: here are some of the other tech headlines we are tracking. 10 trading pairs involving tokens labeled as unregistered securities by the sec will be removed. most of them will be delist it by thursday. it is supported by a digital

asset entrepreneur. the china-based hupbi has been a major marketplace for derivatives trading of major assets. byju's is seeking to calm investors after missing deadlines to file audited financial accounts. its leader has reached out to investors in recent days to assure them that the startup will release financials and strengthen accounting processes. byju's raised millions, but is now embroiled in a bitter dispute with creditors. coming up stocks are losing steam as chinese optimism fades over more aggressive stimulus measures from beijing. we look at the markets next. this is bloomberg. ♪

haidi: some news that we are following on the corporate front -- kpmg is cutting nearly 5% of its u.s. workforce, to counter challenging economic conditions and lower turnover rates. they will learn of their. immediately. advanced professionals will be notified later. it will amount to about 2000 positions following the cutting

of 700 jobs in february. members of goldman sachs gathered in india this week. some executives say the move could help quash speculation about ceo david solomon's future as he approaches five years in the position. blackstone is said to be considering offers for half of its stake in the bellagio hotel in vegas which he purchased almost four years ago, for $4.25 billion. blackstone has not yet committed to a sale. the bank has been looking to cash out of some of its realistic positions, including selling warehouses and industrial properties worth $3.1 billion. eli lilly gained in after-market trading due to gains in the weight loss drug. eli lilly is already the most valuable drugmaker in the world, on anticipation of these obesity

treatments, shery. shery: chinese stocks are poised to fall further after the shanghai composite index dropped below its 200-day moving average support level. our asia tech reporter joins us. the breach might send a slower today? jeanny: overnight we have not seen very encouraging news or sentiment over chinese assets. stocks are quite bearish. we have a very weak chinese yuan. domestically, we have seen travel spending in china during the past holiday season has not really recovered to the pre-covid level. we also see renewed concerns in the property sector, the developer says they will default on their obligations. i think people are waiting for

signs, for the macroeconomy to really show signs of recovery, which we have not really seen yet. haidi: what about the weakness we are seeing in the currency? jeanny: i think the yuan currency, based on conversations with investors, they are expecting the chinese yuan to remain weak. when you have hawkish central banks externally out of china and then in china, you will have more interest rate cuts or rrr cut's in the second half which naturally would translate weakness for the chinese yuan. on the other hand for the chinese economy, the macro sentiment is still quite weak and have not seen a very sizable recovery in a lot of aspects. so i think the chinese yuan, according to investors, will continue to be weak in the near

term bloomberg's jeanny yum there. some of the stocks we are watching ahead of the open in hong kong and shanghai. a break-in executive order or potentially cut off certain u.s. investments in china. china has also banned 3 -- four allegedly spreading "harmful information about the nation's unemployment rate and the stock market." taiwan says eight chinese fighter jets across the taiwan strait and went past the nautical mile limit. shery: take a look at how u.s. futures are trading, a bit of upside, zero .1% higher in the s&p 500 after we saw in losses in the new york session. we go today to see profit-taking in the tech sector, but perhaps a holding pattern as we are awaiting for second-quarter

earnings to start. an interesting fact, the vix fear gauge is falling together with stocks. that reflects that investors perhaps don't have high equity exposure. more interested in selling volatility, so let's keep that in mind. at the same time, we are seeing chinese futures pointing to the downside as we see ftse china futures slightly pointing higher. we were talking earlier with jeanny yu about how we might see broader downside in chinese equities, given half we have breached the 200-day moving average. and the yuan offshore, still seeing the weakness, past that 7.24 level. this, as the offshore yuan has underperformed all asian peers in the previous session. we are watching the world economic forum on going now in tianjin, the "summer davos." the chinese premier delivering a speech.

this at a time when china is struggling with that economic recovery post-covid. we are expecting pmi numbers out of china for june. that will give us some indication of where the recovery is going. that is it from "daybreak: asia." -hour mark markets coverage continues as we look to the start of trade in hong kong, shanghai and shenzhen. standby for "bloomberg markets: china open." this is bloomberg. ♪

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