>> good morning. i'm haidi stroud-watts in sydney. >> i'm annabelle droulers in hong kong. we are counting down to asia's major market open. >> i'm shery ahn. the top stories this hour -- tech mega caps lead a self rebound as traders walked on strong u.s. economic data. snowflake jumping on an ai hook up with nvidia and tesla rallying. >> ubs plans to cut more than half of their 45,000 strong workforce, with trading and investment bank hardest hit. >> plus inflation set to have eased in may, potentially supporting the case for an rba pause. take a look at how futures are opening in the asian session. downside pressure after we saw the stop jump in the new york session. the big rally entech was a risk on the, with the s&p 500 headed

toward the fourth consecutive month of gains, the longest streak since august of 2021. u.s. consumer confidence jumped to the highest level since the start of last year. u.s. home sales also rising in the fastest pace in over a year as well. treasuries are falling on the strong data with the 10 year yield rising. around four basis points or so to that 376 level. of course the dollar, sinking on the other hand, while we have oil also falling in the new york session. people were concerned about potentially more rate hikes coming and the global growth outlook been challenged. we are seeing a little bit of a rebound, when it comes to the asian session. bloomberg has learned ubs is preparing to cut more than half of credit suisse's 45,000 strong workforce. sources tell us the investment bank operations in london, new york, and some parts of asia

will be hit the hardest. for more, let's bring in our bloomberg deals reporter. crystal, we are seeing there were structural slowly taking shape -- restructuring slowly taking shape. >> we are seeing a lot of the ubs executives are sitting on top rolls. as a result, you are seeing a lot of cs people they inherited seeing the impact. they are talking about cutting at least 50% of the staff they inherited from cs. that is back office, front office, support staff, everything. that will be done in three rounds starting july. more september and october. -- more in september and october. >> do we know about the impact on the asian operations? >> so far we know they will impact parts of asia. it has not been laid out where yet. there's been more chatter on the regional -- the domestic

headquarter of credit suisse and switzerland and whether that would be integrated fully, or to be spun out. that decision will be made. as of asia, that is a story we are still following. >> what does that mean for the overall business? >> this is credit suisse's chance to really think about what they want to fully integrate -- fully want to have a footprint in. they're very strong in wealth management, and that is something we expect them to keep. within switzerland, that business could potentially get too big to become a concern for regulators. they are proposing a spin out as a potential option. for global investment banking, they talked about retaining some of the credit suisse investment bankers but a lot of them fled to various places like barclays and santander, trying to hire bankers to capture this unusual burst of talent. we are seeing them trying to cut down costs. they would be saving at least $6 billion by cutting down staff.

it is a big number. a lot of people will be looking for jobs. >> bloomberg's crystal tse. data has revealed surprising strength when it comes to several corners of the u.s. economy, using immediate fears of recession. let's bring in bloomberg's kathleen hays for more and also vonnie quinn for this conversation. talk us through the numbers, does this give us an indication we are potentially back to the soft landing hopefulness here? >> it certainly raises that hope. certainly it remains to be seen how the numbers hold up. remember interest rate increases -- that the other side of the coin. take these numbers at face value. if we are heading towards recession, would you see new home sales going up at their fastest pace this year, third month in a row they've been raising, 763,000 is the annualized rate for the latest month. new home sales are a much smaller part of the housing

market. there's a shortage of inventory and demand. the other big number -- one of the others is u.s. consumer confidence rising. over seven points to 109.7. what does that mean? it's the highest level since january of 2022. with two main components -- one of the two is the turquoise line. how people look at the economy right now. they call the current conditions. that number rose as well, about six points to 155. nearly 47% c jobs -- see jobs rising right now. rising a bit. we are heading for -- if we are heading for a recession, why is everyone so confident? the data looked like resilience. not the other r word, recession. at morgan stanley, they are on

board with a rate hike in july and jay powell speaking to congress last week signaled the fed has a long way to go. >> the market reaction has been interesting because strong debt also means the fed might continue to tighten, but at the same time we saw really risk assets rallying. >> it was a phenomenal day. this market are starting to prove itself to investors. even some of the bears are desperately trying to make themselves heard. rosenberg being one of them. the bulls are in command. we saw the s&p rally three and three quarters percent in june, its fourth straight monthly gain, bringing the game back up to around 14% which is just below its high for the nasdaq we are now up to 29.5% gain for the year, just below its high as well. bear in mind there is only three more sessions in june. there may be some profit taking. we definitely saw some reaction to the data that kathleen was outlining. . the consumer is resilient. the labor market is resilient. there are several interesting strands to pull on here.

it was not just big tech. we had the likes of the delta airlines chief executive saying, there might be a recession, we know there might be a recession but we are ready for garden-variety recessions. it is all about pricing in what is to be expected. perhaps there will be a recession being pushed out a little further. but as the delta airlines ceo said, we as companies know how to deal with these types of recessions. some of the airlines' stocks that moved the most, delta, american. the other thing i'd like to point out is the bloomberg intelligence study called the market regime index. for the first time, that's now out of red territory which shows a potential decline and is into its middle territory which is yellow. it is supposed to indicate moderate growth. it is very possible we are in for a phase of moderate growth. >> was our reaction in the markets in terms of fx movements

given some of the hawkish commentary coming up from the ecb officials. >> it is the big central for over and portugal. christine lagarde, kicking it off today. like other hawks there in force, she made it clear not only that you can't call the peak in rates yet. she things there will be a hike in july. rates could say higher for longer. let's listen to what christine lagarde said. >> we need to bring rates into sufficiently restrictive territory to lock in our policy tightening. we need to communicate clearly that we will stay at those levels for as long as necessary. this will ensure that hiking rates does not elicit expectations of a too rapid policy reversal and will allow the full impact of our past actions to materialize. >> we want to give you comments from a couple other hawks -- more persistent inflation is going to call for more rate hikes, the slovenian central bank chief, we have latvia,

saying the market, optimistic about inflation, he doesn't begin to see rate cuts until 2024, and the first half -- in the first half. italy, the italian prime minister, putting the stamp of approval on the next head of the bank of italy. this person will take office until october. five you -- fabio p., a dovish member of the ecb. two deputies lashing out today at ecb tightening. highly indebted when it comes to the debt/gdp ratio and higher rates will not serve their cause. >> vonnie, we so interesting to buy limits when it comes to new momentum being added to this ai rally. >> we thought that was may be coming to a little bit of a standstill. . it doesn't appear so. we did see more moves related to ai today. snowflake being one of them,

just on the hint that it might be doing some kind of partnership with nvidia when it comes to ai. equities insecurities, it's a marketplace for privately held securities. it says there is huge demand from institutional investors who are being aggressive to even retail investors looking for any piece of the ai pie. it is a stark contrast with the other part of the startup universe. that is seeing a phrase right now. you have cash drop startups and all manner of industries that can't get their hands on any money. particularly since the banking turmoil earlier this year. that's not the case for ai. the other thing i mentioned was for google's parent, alphabet, it may not have been the best ai related to peer that another ground day today after the -- another downgrade today after the ubs downgrade monday. some say they are moving too

fast, so it might be more difficult to monetize quickly. in the immediate future, to monetize their ai developments, let's say, and that is why alphabet took a led lower today. another 10th of a percent after having dropped to 3.2% on the first downgrade monday. >> as bloomberg's vonnie quinn and kathleen hays, staying on the theme of the ai frenzy amtek rally we have seen, we are seeing challenges perhaps for that trade. nvidia taking ahead after hours. we are seeing reports from the wall street journal that we could see the restrictions on exports of artificial intelligence chips to china. this is over concerns of the rise in power of the tech, in the hands of u.s. rivals. according to sources speaking to the wall street journal, the commerce department could move as soon as early next month to stop the shipment of chips made by nvidia to customers in china, and to other countries of concern without first obtaining

a license. this would sort of be just part of the final rules codifying it and expanding the export control measures that were already announced last october, according to people speaking to the wall street journal. we know the secretary yellen is planning to visit china in july. we are also expecting that executive order that would regulate and cut off certain u.s. investments in china. really, when it comes to the jew political tensions perhaps affecting markets, we could see -- geopolitical tensions perhaps affecting markets, we could see tensions brewing on that front. >> when you think about chinese stocks in particular, it is a question of how much of the bad news has been priced into the valuations at this point. they could actually start to entice investors despite those geopolitical tensions. in terms of the market reaction to the story from the wall street journal in particular, we will of course be watching chip names in those have a markets like japan, korea and taiwan. when you take a look at the

screen, you can see we are setting up mostly for gains in the asian session today. we've already got kiwi stocks online. trading a little bit firmer at the outset here. watching bond yields as well in particular, given the moves we had higher in the prior session. it is really down to the outlook for central banks. will the fed have enough data to support it causing. who else will be speaking wednesday is the bank of japan governor. watching what's happening with the japanese yen ahead of his speech on wednesday. we have seen the yen touching its weakest level year to date. the line we had been watching for is 145. we are getting quite close to that. when you take a look at what rate we are expecting -- trade we are expecting, markets indicate there is that expectation the boj is not going to be shifting course at any point this year.

>> still ahead, we will be discussing how we played as initial investment environment with ai shares. they think the u.s. economy is likely to see a soft landing than a recession. we will talk global risks and global growth uncertainties. china's premier warning the west against politicizing trade. this is bloomberg. ♪

>> some in the west are hyping up the so-called phraseology's of reducing dependencies and read -- and de-risking. these two concepts i would say our force proposition. governments and relevant organizations should not overreach themselves. still less overstretch the risk or turn it into an ideological tool. we should oppose the politicization of economic issues and work together to keep global industrial and supply chains a stable, smooth, and secure. without peace, nothing can be achieved. this is a hard lesson humanity has learned from history.

>> the chinese premier speaking at the world economic forum,'s criticism of western policy just coming with the treasury secretary expected to visit china in july. our next guest says this will be a test of whether beijing is ready to cooperate on shared global challenges. the asia society policy institute vice president joins us now from tokyo, wendy cutler. great to have you with a spear i can just imagine how both sides will try to -- great to have you with us. i can just imagine of how both sides will try to lower the bar on what comes out of these meetings headed into july. what are you expecting? >> first of all we are expecting secretary ellen to visit. she's been anxious to visit now for a few months. we need to see secretary blinken go to beijing first. there are a lot of issues yellen can work on with china. particularly macro economic stability and dealing with restructuring debt for developing countries. there are opportunities for

cooperation. china has been reluctant to cooperate. let's see whether her visit advances cooperation in either of these important issues facing the global economy. >> how much of that unwillingness to cooperate is of course given washington's actions lately? we were already talking about how ahead of this visit or around this visit we could see an executive order by the biden administration that would regulate u.s. investments into china. we just broke news from the wall street journal that perhaps the fight and it ministration is looking into new restrictions on exports of ai chips to china. this is not really going to help communication between the two sides. >> this is the reality of our bilateral relationship right now. we are going to continue to be rolling out restrictions that deal with national security. china doesn't like this. china wants us to back off answer basically back off and

exchange that for cooperation. our view is we don't have to pay for cooperation. these are issues that affect you, as well. so this is a conundrum that skillful diplomacy and rational minds can hopefully help break this long jim -- this logjam. >> how do you gauge the sort of leverage that each side has? obviously this year, at this point, very different to perhaps excitations of how the chinese recovery would've been even just a few months ago. does that we can beijing's position in terms of incentivizing the need to try to build these guardrails? >> beijing is worried about their week and uneven economic recovery. it's worried about shifting supply chains out of china. and it is also seeing its exports dropped to not only the u.s. and europe, but elsewhere as well, and exports have been a

key driver for their economy. they have some vulnerabilities. but we shouldn't overestimate those vulnerabilities. i think china thinks it is pretty strong. its market is a lure for many u.s. companies and they think they have leverage as well. >> are we overestimating some of the speculation about what's happened over the weekend? putin and how that potentially weakens that friendship, that relationship, whether beijing might be reconsidering i guess the ability or willingness to continue backing russia as a partner, to the extent that it has so far? >> i think analysts are just rushing to kind of draw conclusions from what happened in russia over the weekend. i think we need more time not only to analyze what is going on in russia but to really think about how -- answer the degree to which this impacts beijing's thinking. at least at this point, i think

some people are drawing conclusions that i think are a bit over-the-top. i think again beijing sees many differences between itself and russia. clearly doesn't benefit from a weakened russia. but it's decided russia is its partner. so it's going to remain loyal to russia. >> would you say the relationship has bottomed out between the u.s. and china? it's interesting we are talking about that executive order that's coming out. that has already been sort of choreographed before. the potentially new restrictions on the ai chips to china as well. these were already announced last october as well. what sort of response can we expect from china is already all of these things have been talked about -- if already all of these things have been talked about? >> we are in a fragile period of engagement right now. both the u.s. and china are interested in lowering the

temperature and putting the floor and guardrails on the relationship. but as you said, anything can kind of throw this fragile thought out the window. this is all going to have to be done step-by-step. but i do believe a yellen visit could be helpful in improving relationships between or stabilizing relations between the u.s. and china. the treasury has been an advocate for a stronger relations with china. they recognize that they have shared interests on microeconomic issues as well as an debt restructuring. i think her visit offers an opportunity to help the stabilization of the relationship that was started by visits over the past month or two, including the visit by secretary blinken. >> does it also help make it easier for some of these little nations and u.s. allies?

i'm thinking of course australia. which has experienced a downside of that relationship as well, as ties were worsening, we saw the same reflected in tempora -- do you think there's a dislocation in terms of a more independent relationship between the likes of australia and china? do you think that still rides on the coattails of how well that main relationship can progress? >> each country has their own national interests they are going to pursue. australia faced a pretty rocky time in the relationship with china, which resulted in a lot of import restrictions. china's lifting some of those import restrictions, renewing engagement with ministers. their stock to prime minister may visit beijing this will. that said, australia remains a close ally of the u.s.

all these countries around the world are watching the u.s.- china relationship very closely. they are trying to navigate around it while pursuing national interests. >> wendy, always great to have you with us. wendy cutler, joining us out of tokyo today. plenty ahead. this is bloomberg. ♪

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in the near future, the central bank will be able to state with full confidence that the peak rates have indeed been reached. >> if inflation is more resistant in terms of interest rates -- >> we will do what is necessary for inflation to come down to 2%. stagflation is not a good choice to have. >> we should not exclude the possibility we will -- we might hike in september, too. >> in some countries, especially the u.s., they were expecting three rate cuts this year for u.s. fed policy. they have adjusted. >> the momentum of course being extremely stable in the u.s. and europe around 5% on a yearly basis, when it to see that coming down. >> markets have been very optimistic and i suspect they are still somewhat optimistic about the past for interest rates. >> officials discussing inflation and interest rates at

the ecb form and central portable. our next guest says the market has adjusted relatively well, and the u.s. economy is likely to see a soft landing than a recession. coo and chief investment strategist -- joining us from boston. -- and strategist eva ados. joining us from boston. at some point you are de-risking or portfolio. >> we have been in large cap growth year to date. what we've been changing is we are decreasing our positions from the mega caps. large mega caps in tech. i think the rally year to date was for seven or eight stocks. including nvidia or tesla --

since 2013. valuations are a little bit elevated. the companies are left behind. the rest of the large cap's will see -- will have better potential in the next few months. we are still in growth in tech and health care. going into the middle tier large cap's. >> we saw another leg of momentum when it comes to ai. is that still a theme you want to stick to for the medium and long term? where are you finding some of the better valuations at this point? >> with ai, the small caps we are looking at, the biggest way has been nvidia. the safest way to invest in ai. at the end of the day, nvidia will provide the tools to the generative ai companies. it is like investing in microsoft, back with the hard

way. it's the same concept. we continue to maintain a heavyweight on nvidia. it is prudent to decrease the weight in these stocks and relocate to other large companies. >> we are little bit of a hit for nvidia after hours given media reports we might see these new restrictions on exports of ai chips to china that might affect nvidia. how are you thinking about this geopolitical tensions affecting some of those names you are positive about? >> part of it is political. i do not pay too much attention. we will see things stabilize. nvidia will maintain their position. globally, i think there's just -- when it comes to china, we've seen there's a lot of risk.

we've been maintaining a super small weight and china and the last year. we think it is one of the few deflationary environments globally, there is high risk. demand is coming down, that means china's producing and manufacturing economy will struggle the next two months. in china we are decreasing our way further. but when it comes to nvidia, i believe we have a good future going forward. >> you talk about global growth being challenged but at the same time we continue to get this very hawkish rhetoric coming from central banks, what will be the fallout from that, if we do not see a turnaround in terms of monetary tightening globally? >> the european markets,

regardless of the tightening, they performed extra mary. what i go back to them? no. with asia, i do not see a lot of potential there. i've maintained my position that the safe haven right now seems to be the u.s.. especially with large cap tech and health care. we see inflation coming down. growth companies will outperform. i think we will continue to see tech and health care outperform the rest of the platform. in the next two months. i think globally, what i would do is maintain obviously a speculative small position globally, but have a much bigger weight in the u.s. >> we are really ahead of the stress test results coming here for u.s. banks, after -- after the banking turmoil that we saw. do you have any expectations of opportunities that can still be

found in that sector? >> this is a market of haves and have-nots. it comes down to who you are banking with. we have smaller companies banking with regional banks. they have now financing risks. it's important to see which company you are looking at -- who which company you are looking at is banking with. they are benefiting from long-term interest rates that very low. it's really a market of haves and have-nots. i do think small caps have better potential going forward in the next few months. >> the ershares coo, great to have you with us. more analysts are turning cautious on the outlook for global parent alphabet.

annabelle is joining us now. bernstein is now stepping away. abigail: we are seeing a lot of analysts turning more bearish on the stock. ubs was one earlier this week. bernstein has come through. the key reason they have decided to downgrade this to market perform from a performance, essentially the speed at which alphabet has moved into ai. it was seen as a little bit slower than its peers to move into ai, now there's a concern they have moved too far, too fast instead. because they have a lot of integration. they're working on integrating chatgpt, their equivalent, into their search results generally. bernstein's making the case that when you had that aggressive push from generative ai into search, that could also impact your bottom line in terms of search ad pricing. they are flagging a risk for

this. let's take a look at what we see in terms of the consensus on the stock. the consensus shows the trend to the downside. we are now the lowest analyst consensus rating since 20 teams . so a five-year low -- 2018, so a five-year low for the company. >> we are seeing the frenzy continue in an alternative market. >> that's right. it's quite interesting. . the divergence you see from a name like alphabet. that's really where investors are putting a lot of their interests, at least from the institutional side. companies like openai, we understand from rainmaker which facilitates the sorts of trades and secretary markets that investors are willing to pay a huge premium on these companies -- more than 25% or higher for 25%. that is a company backed by ftx. one of the better investments they made before the collapse of that exchange. talking about big tech generally, this is a story,

essentially, we are seeing a decline in names like nvidia after we had a wall street journal reporter saying essentially the biden administration could be lifting or looking to put further restrictions on chip exports to china. they could come as early as next month. nvidia controls about 80% of the market for ai chips. no surprise we are seeing the stock down 2% in after-hours. >> we sort of saw the broader geopolitical theme play out at this opening speech by the chinese premier at the world economic forum to warn against economic barriers and reiterate beijing's stance on the concept of de-risking. our chief north asia correspondent stephen engle is there for day two of the gathering, the u.s. first and braced this term, de-risking, and it seems that china is now

going ahead as well. >> essentially, the premier said de-risking is a false proposition. it's a bit of a change in rhetoric in the speech we got from him, but a similar message that the premier used when he went to germany last week, as well as france. he met with business leaders, he met with the leaders of mercedes, bmw, the automakers like volkswagen and others, and essentially appealing to them to not necessarily pushback, but is not mutually exclusive to have governments -- excuse me, having risk on the one hand and then the opportunity on the other hand. they are not mutually exclusive. he kind of criticized governments for setting policy for companies. he wants companies to make decisions on their own. that was the appeal. a few minutes ago, i got an e-mail from a viewer and the

friend in the u.s. asking me, how i learned anything really useful here after day one of the world economy forum? i guess my answer is, yes and no. most people that i talked to -- talk to, leaders coming back to china after the pandemic that haven't been there since 2019, i think most people are asking more questions on day one and day to than giving me the answers that we all want to hear. they are trying to figure out what the messaging is and what the business environment is here . clearly the chinese economy is slowing down and the chinese government is appealing to business leaders to come here, to work with china on a sincere basis, and that dialogue and communication is better than conflict. the message that came from the premier was not groundbreaking. you could see -- you could say the allegations against the

u.s. were similar rhetoric the u.s. has used against china. that there needs to be sincerity and there needs to be dialogue. it is a feeling out period right now us china reopens and invites people and business leaders today two of the world economic forum. >> stephen engle with us there, are chief north asia correspondent. we will be bringing you exclusive conversations from the world economic forum on the driving forces of the global economy. catch them at those times you can see on your screens. coming up, price pressures, easing, potentially supporting the case for an rba pause. we will have a preview, next. this is bloomberg. ♪

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>> let's take a look at some of the top stories from around the world. the leader of thewagner mercenary group has -- wagner mercenary group has arrived in belarus. the deal brokered means he will not be prosecuted. putin has repeatedly thanked the army and security forces for their support.

during meetings shown on russian television, saying they prevented a civil war. the imf says pakistan is taking decisive steps to push through a series of economic reforms. it is a sign an agreement may be near to revive a program set to expire this week. the mission chief says authorities are bringing policies more in line with the economic reform program supported by the fund. smoke from canadian wildfires is said to choke new york and parts of the mid atlantic. new york's governor warns air quality could reach unhealthy levels and the smoke and haze will affect the whole state. new york city and surrounding areas experienced some of the worst air quality in the world earlier this month when smoke from quebec's forest fires floated south. >> australia's may cpi is due out in a few hours. economists, expecting the report

to show slowing. the indicator would show a cooling. that's expectation. does that change the calculus for the rba? >> it's a hard one. we've had very strong jobs report certain -- a very strong jobs report earlier this month and that has prompted a lot of economists to believe the rba is still going to be hikingg interest rates. today's data, even if it shows a cooling down, we still have inflation at 6% or thereabouts, which is pretty high compared to the 2%-3% target. it will be hard for them to make a decision just on that one number. they are going to be looking at everything, that is consumer spending, business surveys, jobs data, still pretty strong. this number has to cool down, but also services inflation is really sticky. we are seeing rents are still going up and services in terms of restaurants, haircuts, those

type of pricings still pretty sticky. that is what the rba will notice, if today's data shows there is a stickiness and services, even though the headline is a cool down, it's not going to be enough for them to pause. >> how will taylor swift factor in -- i know this is an odd question, but we have seen superstars' tours make a difference in the local economy. her tour is coming up. >> that is right. the only i guess difference with the taylor swift tour in australia is that is going to happen in february. there is widespread expectation that by february, inflation will be well under control, australia's economy will have really slowed to a crawl. so it is going to be actually

really hurtful in reviving downbeat consumer sentiment, and it -- and we will probably see people from other states come to sydney or melbourne. because she's only doing these two cities. she's not going to new zealand. we are also likely to see new zealanders come. we are definitely going to see some services expenditure. we are going to see travel -- a travel boost as well. but whether it leads to the beyonce effect we saw in sweden, it is hard to say. >> just one more thing for central banks to have to deal with in this rate cycle. our economics reporter, head of cpi numbers for later on today. february, we will be watching for the taylor swift effect. tune into bloomberg radio as well. hear more from the days newsmakers and get in-depth analysis from our team there. broadcasting live from our studio in hong kong. you can listen via the app,

radio plus, or bloombergradio.com. more ahead. this is bloomberg. ♪

>> planning to build their own batteries and a lab in melbourne as they experiment with clean energy technology, is this a

precursor forrio tinto getting into their own battery many fracturing? >> this is exciting, but no. we were quite clear about that that this is going to take place in a lab. this was mentioned yesterday at a mining conference in brisbane by the ceo of minerals -- saying they will become a manufacturer but will be making batteries in a lab in melbourne to explore the applications for these minerals, some of the other critical minerals as well, how they perform in real-world applications and sort of allow them to tailor their products towards customers. network is going to start at the end of this year. -- that work is going to start at the end of this year. >> they don't produce lithium at the moment but that is about to change? >> that is another key piece of the puzzle. there's a project in argentinaa mine serbia, which once complete

would be the largest in europe. the lithium sector is very much dominated by smaller and medium-sized players. you kind of look at that and think, it is rather ripe for consolidation and that is a subject a lot of analysts have been writing about as well. plenty of demand here. benchmark minerals intelligence had a report out saying the lithium market is going to be facing a supply crunch towards the end of the decade, another 51 billion dollars in investment to meet future demand. >> bloomberg's paul allen there. there's more ahead on the outlook, when we speak exclusively to the eurasian resources group ceo in are china open show with the times on your screen -- our china open show with the times on your screen. energy transition is a focus on episode 2 of bloomberg's "new direction" series which premieres wednesday night. we speak to key players about the region's road to renewables and electrification. ♪ >> it is the fourth largest

consumer of energy over the last 20 years. it's doubled its size. it's tripled its energy consumption. >> coal fire fire plants are the usual scenario, if nothing is being changed. >> it's not only about scaling up renewables but also about methodically phasing out coal, and planning for it. >> i want to touch on electrification of vehicles. the picture in southeast asia is very different. >> a two wheeler is different. it is very lightweight. the efficiency on that is dramatically higher. we are talking about five times more efficient per kilometer on energy. >> energy transition, it is energy security, trying to address change. we are really trying to solve a crisis for humanity. >> numbers underestimate technology. we could get to 100% net zero, but a lot depends on that human ingenuity. ♪ >> that episode of "new directions" premieres at this times -- these times in

singapore, hong kong, and sydney wednesday evening. how we are sitting -- let's take a look at how we are sitting when it comes to the midweek session in asia as we get into the start of trading. asian shares are primed for gains. we did see a rally on wall street fueled by strength in the u.s. consumer confidence and suggestions they are closer to a soft landing down a hard one for the u.s. economy. we are watching the aussie dollar, a little bit of softness under the 67 u.s. dollar mark. we are seeing futures whether you talk about japan here in australia and also hong kong on the rise. we are also watching for some outperformance when it comes to chinese equities today. after that index of chinese stocks climbed the most in three weeks. it does underscore that uncertainty as to whether the resilient data will persuade the fed to go further when it comes to tightening, we did see that drop in treasuries. yields have been pushed higher,

at the same time of course, that revival when it comes to risk growth and tech as well. we will be watching for some of those tech data, cyber, and ai-related stocks as well. we are watching some of the chipmakers in the after hours. a potentially new chip export curb would take some of the momentum we have seen in this rally -- take away some of the momentum we have seen in this rally. retreating in the post-market session. the wall street journal reporting the bennett administration is considering new curbs on exports of artificial intelligence chips to china. we will continue to watch that story. "bloomberg daybreak: asia." is next. this is bloomberg. ♪

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