♪ >> good morning and welcome to daybreak australia. i'm haidi in sydney. annabelle: i'm annabelle and hong kong. shery: good evening from

bloomberg world headquarters in new york. at the top stories, bond yields climb as fed minutes reveal division over the rate. bolstered by gains in tech mega caps. treasury secretary janet yellen heads to beijing to find common economic ground in an increasingly turbulent relationship. shery: several candidates are in the race to run the rba as reports emerge of a secret short list. look at how u.s. futures are opening, muted to given that we were watching the moves in the new york session. downside pressure with materials and industrials leading declines but lacking clear direction after the fed minutes. confirming the signals that we got from the hawkish pause. treasury yields with a 10 year yield passed at 393 level. we saw two tenants, the yield curve a little steeper today but

analysts are saying perhaps that does not change the downtrend that we have seen in the past few months. look at oil prices in asia, pushing higher after gains in the new york session. we have words that uranium force is trying to seize two tankers and that led to gains in oil prices. where the fed might be headed in the next policy decision. haidi: in the minutes of the june meeting by the fed showing officials divided over june's decision to pause committing to hike again later this month. a pboc paper has --says china has enough to stabilize in the event of a panic slide. we discussed this with linda curran and our cross asset reporter. emily. what was your take when it comes to the messaging in these

minutes? >> u.s. interest rates are going up like you mentioned. the fed agreed to pause in june but really it was a temporary stopgap measure. several members of the committee saying inflation remains high and pushing up interest rates makes a july hike look likely. it underscores two things. the fed is not done with its hiking cycle. with that there might be a pause in june and that's it. secondly it pushes back against the idea that the fed would be cutting interest rates later this year. the message is the fed is not happy that rates do enough to curb inflation. that will have applications for global currencies. shery: how did the markets take it because we saw downside pressure in equities but tech did not do too badly? >> we did not see much of a reaction to the minutes. a little bit of a dip but then

it retraced those losses. the technology sector and the nasdaq 100 finished flat. i had one sources say for this message that the fed is delivering in the minutes and the fed speak, he would expect tech stocks to do worse. we have the nasdaq 100 up about 40% year to date and he said the market is either not listening to the fed or does not believe that we will get to more rate hikes. if on the other hand betting against tech this year has not worked. i have been hearing the same message over and over again. these valuations are not going to jive with the rate hikes, they cannot handle tightening and we just have not seen the equity market cracked under the pressures of monetary tightening. haidi: we are not seeing many bets against the year of the bond in light of those minutes. >> we did not see much reaction

to the minutes from the bond market when you look at the short end of the curve. the two-year was flat after those minutes suggesting that the bond market was already expecting more rate hikes in the message that was delivered in the dot plot. we saw a yield curve steepening with the longer end of the treasury curve moving up higher and the two-year pretty much flat we are inverted on the twos and tens curve by about 100 basis points. this is a near record level of inversion. he had ed hyman of evercore talking about how he is the most bearish on the economy he has ever been and he cited the yield curve is one of those signals of that recession coming. for the bond market i would say one thing to watch is the job market. it seems like in that two-year the market is trying to understand how much more tightening and how much more data are we going to get from the economic side to paint this

picture of where we go from here. shery: one reason we are seeing weakness when it comes to the chinese yuan, officials seem confident that they can stabilize the currency? >> there was a paper from the pboc making the point they have a range of tools, mostly accounting or money markets, to put a flow. they spoke about economic fundamentals in china being sound and that is expected to put a technical floor under the currency but as you mentioned it is a source of concern because high interest rates in the u.s. versus china is looking away from the bond and equity markets. that's a concern for the authorities. the yuan's 50 year low as not triggered the panic from 2015 for example because china's capital controls our firm in place. messaging from authorities that they are noting where the weaknesses, they have the tools to counteract but no signs of

panic from the authorities just yet. shery: global economics correspondent and cross asset reporter with our top stories today. in the coming hours -- in the coming hours will be watching janet yellen looking to find areas of common economic ground when she begins her chip -- trip to china. she set for three days of meetings in beijing three weeks after the secretary of state's visit. let's bring in our political news director jodi schneider. what are the two sides trying to accomplice with the -- accomplish with the trip to beijing? >> you put your finger on it, communication is what everyone says. just as secretary blinken did when he was there with his chinese counterpart. janet yellen has long said that she wants to reestablish and economic dialogue to find these

areas of common ground even though there are many areas of disagreement. she spoke a lot -- at a great length, about how she wants of course to defend u.s. interests, national security interests and allow china to have a strong economy. it's not in the u.s. best interest to her china but they want to protect u.s. interests. so in doing so she is going to try to find some areas where she and her chinese counterpart can begin to talk, can really start what they hope our series of talks that will get them closer on issues like trade. haidi: the visit comes after restrictions were imposed by china amid ongoing tensions between the countries. does that kind of dictate the atmosphere for these meetings? >> yeah, it has been a tough time in right after the secretary of state lincoln came

back to the u.s. we heard a comment at a donor event from president biden that was very negative about his counterpart, president xi jinping, about him being a dictator. president biden kind of brushed it off later, but you know, so this atmosphere does not help in the u.s. has of course really imposed tough restrictions on advanced chipmaking equipment against china and gotten some of its allies to do the same. china in recent days has imposed some curbs on some crucial minerals that go into chipmaking and this is obviously post these tough export controls on these, which are affecting u.s. chipmakers and u.s. interests. so of course this is back and forth. we still have tariffs imposed by the trump administration that have remained in effect for three years. secretary yellen has noted that

she would like to see those, off but president biden has stuck by them so far. so there is a lot in the background, it a lot of tension. what she is hoping to do is cut through some of this and establish a relationship and a dialogue where perhaps they can find some common areas, even amidst tensions. shery: what are feasible results that could be achieved from the meeting? >> i think the most important one is to keep talking and if they come away with this resolve perhaps or her counterpart to come to washington or for them to meet on the sidelines of economic -- global economic events, that would be a win. sometimes that does not sound tangible, but that would be a tangible result that they establish this dialogue. the other is to work on areas with common interest like environmental concerns, both sides have expressed interest in trying to really make gains on

cleaning up the environment and other areas like helping out poorer countries and giving aid and basically debt relief. so there's those kinds of conversations. they will not stray into geopolitically tense issues like taiwan. you would expect that they would stick to relatively narrow areas of economics. and again to try to sort of see if they can find common areas. this is certainly on the agenda for secretary yellen. haidi: that is our political news director for bloomberg tv and radio, jodi schneider, joining us in washington ahead of the treasury secretary's visit to beijing. let's get you to bell for a look at the markets setting up in asia as we digest those fed minutes and an overlay of geopolitical talks as well. annabelle: that's right and

there's general weakness in the chinese economy because it is quite interesting of course the trip to china, the context in which she is arriving from a market perspective because we have continued to see the slide in mainland equities over the past few sessions. yesterday by the pmi data and services sector contraction that we saw again in the prior reading. that tells us perhaps there's not just the need for a fiscal stimulus, there needs to be structural stimulus in china as well. that's the golden dragon index. china's futures are fairly flat. a weaker start to the session. the china economy story and prospect of a fed rate hike, that has been weighing on equities. keeping our eyes on the japanese yen as a big counterpart to the fed and sticking with dovish settings. 140 five level certainly one to watch in the session.

let's change on because china's economy being felt across asset classes and oil is one we are seeing under pressure, given demand from china has not come back. we have been discussing opec-plus production cuts coming from the middle east and russia. the saudi's in particular. what that has been has been bullish sentiment coming back. take a look at the spread, the gap between the two nearest contracts is back. that is a bullish signal as they say for the market. shery: still ahead we will continue the conversation on oil with commonwealth bank. as the opec meeting gets underway in vienna with the uae saying it will not add to output cuts pushed by russia and saudi arabia. but first as the fed minutes, another rate hike this month. global strategies shares their market outlook next. this is bloomberg.

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♪ >> we can take some time and assess and collect more information and then be able to act, knowing that we have communicated through projections that we do not think we are done

based on what we know. shery: new york fed president john williams. let's bring in the president and global strategist closely watching the inversion of the yield curve as we get signals of a july fed hike. always great to have you with us. we have seen of course the inversion him over the new extremes this week. of course, the barometer for recession risk. at the same time, a little steepening today, so is this a blip or put it be sustained? >> i think what you see is on monday the inversion was as much as -11 basis points. that is the most we have had since october of 1981 and we know what happened in 1981. it was a worker recession at the beginning of the ronald reagan administration and it was a

pretty severe one. so when that happened on monday with tuesday being a holiday in united states rates steepened a little, -101, -100 two basis points. it typically in the case of the yield curve inverts substantially and there is a little bit of steepening and then it follows one more about of inversion. what is important to watch is how sustained it has been. it began in the first week of july of last year and we have been in the negative column as long as the yield curve is concerned ever since then. and that to me says having had this for a full year it is clearly essentially screaming recession in my mind. shery: and yet we are expecting the fed to continue its tightening with more rate hikes to come. will that help with the inflation picture and taking it back to the 2% target?

>> the increase in interest rates will have -- bring the inflation rate down but the question is will the fed persist in increasing interest rates as jerome powell indicated in his speeches in europe last week. more likely, you will have a credit crisis of some kind of like one more bank failing or you could have a problem with the credit crunch. a deep issue in commercial real estate market with bankruptcies. any one of which could again make jerome powell and his colleagues go back on the tightening. so if they do keep tightening, yes, inflation will come down. the real question is are they going to continue to do that? last week in europe jerome powell said one reason for the pause was because he was concerned about the banks failing in the month of march.

now the banks can fail again, let's wait and see what happens in the second quarter earnings numbers. we will want to see how many of them are continuing to lose deposits into if they show that they lost a lot of deposits, stocks will come under pressure and that is where you have to see whether the fed has been -- staying power in raising rates. haidi: complacency is reigning you could say when it comes to expectations over renewed banking stress after the stress test came off without a hitch. what makes you think that it is a likely scenario that we will get a revival of the banking crisis? is it more likely that we will get to 5% unemployment because it feels like those are the two scenarios that might get the fed to make that decision? >> both of those decisions will make the fed, you are absolutely correct. why do i think the banking crisis will return?

the same factors that caused it, the problem in the first place, namely a big loss, long-term paper on the parts of the bank with short-term deposits, is still persistent. we saw in the last couple of days the 10 year yield continued to rise and that means they are going to show more losses during the days to come. and the depositors have become very, very sensitive. the days are gone when you could just offer them .001% and depositors would take it your respective of what they can get in the market. now u.s. depositors are very conscious of what they can get from treasury bills. they are concerned about what they can get in money market funds. so that sensitivity is a new development that we have not seen before. it also says to me that the market is ripe for one more banking crisis to happened in the next six months.

haidi: how does that macro risk outlook inform how you feel about the big driver of this year's rally which has been chips, ai, tech? is that a longer-term narrative that you would still be thinking is compelling? >> that is a longer-term narrative that is a valid relative concept and it is going to continue over the next five to 10 years. who if we are worried about the next six months to a year, year and a half, they are not as important and what the fed is doing and what is happening to interest rates for the overall economy. there is a divergence. this is the same thing that we saw in 1999, 2 thousand, when we had the.com boom. anything that had a.com after it did extremely well. many of them failed but that whole internet era has continued to thrive today 35 years later.

so that did not mean that you did not have a recession. we had a recession, stock market correction in the early years of the century. but then that was in turn overtaken by the internet and the prevailing's of the ai. it's going to do the same thing with respect to other short-term developments in the next six to 12 months. haidi: this time around of course there are interesting developments when it comes to conversations between the u.s. and china are but also more areas of friction as well. are you watching geopolitics as an overlay? >> geopolitics is a very important concern. what is happening in china is relevant from two factors. i would be watching the tensions in u.s. china relationship and despite janet yellen on her way to beijing right now, and the

fact that the secretary of state himself made a trip earlier, that does not seem to have improved the relationship very significantly. that is one issue. i always continue to watch what it means in terms of china and taiwan relationship. if that were to worsen that again would have global consequences. third, we now have an issue also with the slowing of the chinese economy which was not anticipated even a month ago. the slowdown is much more than expected. exports are coming under pressure. the chinese slowdown is a major reason why global oil prices are under pressure as well. so these are all various things for global investors to take into account, haidi. haidi: always great to talk with you. president at -- global strategies there with us. more to come on daybreak australia. this is bloomberg. ♪

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♪ shery: breaking news at the moment, we are hearing that the biden administration is appealing a ban on social media contacts. remember, this was a federal judge in louisiana ordering officials and agencies not to contact black arms to so spread -- suppress speakers and viewpoints they disagree with. we're hearing that the biden administration is filing a notice of appeal on the social media ban. the ruling coming in a case filed by louisiana and missouri's attorney general who claim to the biden administration was trying to silence views and speakers who questioned its covid policies and questioned the validity of the 2020 election. now the biden administration appealing that ban. of course, this is the latest when it comes to a development that pits free-speech rights against government efforts to curb this information.

haidi: take a look at how we are setting up in asia in the wake of fed minutes and also a reassuring paper from the pboc saying they have the tools to prevent a slide should that occur. this is the set up for australian futures. we are looking at asian shares poised to declines in a thursday session. wall street closed lower, hawkish signals from the latest minutes they're taking futures up half a percent.

♪ >> we need to reach out to these issues, attend to them and go for what we think would be the right recipe in the situation,

which is more transparency. >> billions of people depend on our commodity, oil, for daily life. this is an inescapable reality that warrants respect. that is why opec pursues market stability. of course as an industry, we want to ensure that we have an emissions free you chirp. harnessing technologies that can do this would be one of the predominant themes of the seminar. however oil is to central and fundamental for our life just to stop. >> saudi energy minister prince abdul and the secretary general. speaking with us now is the vector, director of money and energy commodities research at commonwealth bank. good to have you with us. what we've seen in terms of momentum in the trading dynamic is each time recently we have had announcements from saudi

arabia and russia and the announcement from algeria. the rally never lasts very long, is that telling us this is becoming a fundamentally demand driven market in terms of swing pricing? >> in terms of how we are framing the oil market right now if you look at oil prices since may it has followed a pattern of macro headwinds pushing prices lower and then opec-plus coming in and insuring or announcing supply cuts. that has meant oil has been range bound and i'm talking between 72 and $78 a barrel since the beginning of may. in terms of at what point will it break out of this pattern that we have seen so far, i would say fundamentally it would come down to what is happening with the global stock price. if you look at how much opec-plus is cutting and how

much oil demand is expected to grow, it is expected now to result in a drawdown, a signal or almost a counterpoint that we think the market will be focused on because if that starts declining sharply, we will see prices break out of that range to the upside. that really supports a call for $85 a barrel for brent in the third quarter. haidi: that's really interesting because how impactful is the demand side? how much of a sway is the sluggish recovery in china? concerns or you might disagree with this that even india judging by imports from russia might be nearing peak oil. >> in terms of the global growth slowed down in macro headwinds, it is something that is a negative impact on oil consumption and prices. when you look about when that would take effect, there tends

to be a lag from the macro headwind to when it results in consumption and you can see the 2024 numbers. they are probably where you will see the oil slowdown happening. when we talk about the second half of the year, what we are looking at is will china sea demand grow or will it fall materially? when you look at data, congestion data in china, we are 25 to 30% higher than the same six months of last year. so when we look at that demand, it has undershot to it and it is for that reason that is hard to see demand falling materially in the next few months, that we will change the dynamic. the risk of a slowdown is there but the level of cuts from opec-plus should lead to a shortage. in the second half, very flat. shery: the latest data from china was from smaller companies

with the thai shing pmi's. we saw significant weakness and really that impacting all asset classes. how does that compare to official numbers we have been getting from beijing and how does this bode not only for oil prices, which is of course what you follow, but also metals? >> it accounts for 16% of consumption. when it comes to energy markets, it is less leverage to china. when it comes to demand growth this year, expectation is china will account for 60% of total oil demand growth in 2023 and that is to do with coming out of covid zero and the fact that transportation gets a massive boost when you get rid of restrictions. that is what is driving the demand story. in terms of what is happening on the metals side, i would say that's far more leverage to china. we are talking 40 to 60% of base

metal demand. 65 to 70% of the world's iron imports. we see leverage with what happened to china, particularly the commodities. less to do with services and more to do with what is happening in fixed assets, investment production, for more critical one we talked about the metals space. if we look at what has happened so far, we have seen demand fading for a while looking at china's emi. it has been quite notable and that trend in terms of what we are worried about, is really helping the sector recover. there are a few things to consider before we go down that pathway. one is where we see infrastructure, let's say 20 to 25% of china's steel demand. the issue we are seeing if local government debt is so high, we're not seeing that lacking material, given that china has

set a conservative growth target for 2023 already. shery: are you following the geopolitics of it all around the u.s. and china, especially with those minor metals like valium and germanium? does this have a meaningful impact on the commodities trade? >> look, it certainly does meet the tensions between the u.s. and china have increased. but it is worth looking at why. targeted almost specifically. if you look at the design and how they are applied, not only can you find say alternative supply from say u.s., particularly japan and south korea, but you also have the risk of silicon. now all of this is happening where china controls 80% plus of the supply chain. but it is not so critical that it is going to be a complete

emergency situation for u.s. and west in terms of dealing with it. in our view, this is something that is not an emergency but neither is it so trivial that it can be ignored. this is something that certainly gets the attention of u.s. and i think negotiations sets the precedent that we are here to talk. if you apply restrictions we have power but we're going to have negotiations and let's be real about the risks that come when you talk about what the west is going to do to china and what china can do to the west. shery: decoupling between the sides affecting commodities. the effect, good to have you with us. director of mining and energy commodities research at cba. let's continue talking about commodities because we have seen oil being pressured by rising interest rates as well. at the latest minutes showing policymakers were split over pausing hikes in june. let's bring in annabelle for more.

we could have rate increases on the way. annabelle: that could be the case and as we know from the fed minutes that came out policymakers were not unanimously deciding to pause and there is a strong camp for a 25 paces -- basis points hike. with strong economic data but some are questioning the recessionary outlook. we saw the impact of banking stress for instance, something that could have been doing the fed's work around tightening. we did get the pause in the latest minutes and signals that inflation was starting to come down and some metrics. however the cio is essentially saying recession is coming from markets and they're also talking about what policymakers are thinking at the fed and they say they're not quite sure about prospects for u.s. economy. >> the fed is uncertain about the future, worried about inflation. going to raise rates.

not sure about the pace. we now know what it was then. here we are again, employment is strong, we are worried about a recession. haidi: what are we hearing when it comes to the outlook for the u.k. economy? annabelle: certainly looking darker out of the developed world. you would say the u.k. has the most negative forecast on the horizon. there is also the understanding that the boe was quite late to start hiking rates as well, so it really does bring the inflation problem even more to the forefront. jp morgan has been talking about this. the current key rate is 5% but they are saying it could top at seven. we also see investors pricing for the key rates to hit six point 25% by the end of the year which would be the highest level that we are seeing in 25 years. change on now. what is an issue is inflation.

we have seen a lot of elevated numbers. sticky numbers as well. this is the call it reading that essentially in may came in at 831 year high. certainly something that is really still very much a headache for the boe. shery: not only for the boe. core inflation is the new headline inflation that central banks all around the world are following. bell there with the latest on those morning calls but let's get you the latest from the corporate front. bank of america has joined rivals in raising its quarterly dividend after passing the fed's annual stress test. bank of america says it has initiated dialogue with the fed to understand differences between the central bank assessment and its own stress tests. even so, the bank plans to increase its quarterly dividend to $.24 per share, up from $.22. the top carmakers have posted strong u.s. sales in the second quarter and a sign of strength for the industry. general motors says deliveries were up almost 19% while strong

demand for several a models. -- chevrolet models. they raised 7% as a ramped up production of camry sedans and rav4 compact suvs, haidi. haidi: coming up we are going to look at candidates who may be on a secret shortlist to lead the reserve bank of australia. this is bloomberg. ♪

♪ haidi: australian newspapers are reporting a short list of candidates for the governor of the bank of australia. that's been provided to jim chalmers. we've been going through the list, so does it exist? who is on it bearing in mind there are calls for the fact that they think the current governor should finish the cycle. >> absolutely. as to whether the list exists, we can't be certain but it would be weird if it did not because july 31 is meant to be the day when we hear an announcement from jim chalmers about who the governor is going to be. anthony albanese, prime minister, to questions yesterday. a range of people are under consideration. internal candidates will be unusual if this went to an external candidate. let's look at who they are. jenny wilkinson department of

finance secretary, previously worked in the rba, held senior positions. would be the first female governor to head up the rba. stephen kennedy, treasury secretary, held a lot of senior positions, phd in economics, well-qualified. then phil lowe himself as you mentioned, the last two governors had their terms extended. phil would like to continue with the job, get another three years. anthony albanese he saying the decision is for the cabinet. it will be taken in an orderly way. shery: we have seen a lot of challenges for phil lowe in the last few years. especially with the pandemic and perhaps even some criticism about how he dealt with it when it comes to communication. what are the chances that his term is extended? paul: there is every chance and phil said he wants to continue in the job. if he got an extension it would be three years taken after 10

years, with the last two governors got as well. the opposition has weighed in as well. the finance spokesperson jane says she would like to see phil lowe reinstated for another three years because she says replacing him during tightening would sort of raise political questions. the rba is meant to be apolitical, but a lot of voters do not separate the two when they are staring down the barrel of big increases to cost-of-living and mortgages and rents. to your point about communication, there was a terrible misstep when phil said rates would not rise until 2024. here we are halfway through 2023 and we have had 400 basis points of increases with more to come. so that is probably going to be a factor that gets considered when the government is thinking about who the governor is going to be. haidi: paul allen there. bloomberg has been told the financial regulator enacted searches of several local

binance officers. let's get the detail from our pension funds correspondent, amy. what can you tell us? amy: what we do know from multiple sources is on tuesday there were search warrants executed in a number of locations in australia. we understand one of those is in sydney, the other locations are unclear. this is part of an ongoing probe domestically, which lines up with the action taken around the globe against binance. the australian securities and investments commission has a probe into the defunct derivatives business in australia. and the financial services license of the business was canceled in april. this appears to be the latest step in the investigation. shery: what is binance saying? amy: this told bloomberg they are cooperating with authorities

and had previously said that, you know, that it was complying entirely and had conducted a review of the concerns around the derivatives business. one of the cofounders did say on twitter that there were external forces hurting the business yesterday. certainly this is an escalation in australia. broadly there has been regulator concerns about the industry here and it does seem that the binance issue is not one that the corporate watchdog will let go quickly. i think it has a fair way to run yet as they continue the probe and as they told us on the record, it would not confirm nor dean i that the investigations had taken place but said that its interest in binance in australia was ongoing. shery: bloomberg's amy bainbridge there. it still ahead, a push to tax harvard university and channel the money to community colleges.

more on the latest challenge to elite college admissions policies. this is bloomberg. ♪

♪ shery: a bill in massachusetts

is seeking to tax colleges that favor legacy admissions. it would redistribute the money from richer schools to poorer community colleges. let's bring in higher education finance reporter janet lori. this is one of the latest challenges when it comes to admissions for colleges with the u.s. supreme court's action when it comes to affirmative action. explain to us legacy admission and what the bill would mean for that? >> giving a leg up to someone whose parents went to the college, a place like harvard in massachusetts. williams college and other rich universities there. legislators had filed the bill earlier this year because they were expecting the supreme court to say there is no more affirmative action. if you are not able to help with race in admissions, let's take out the other equation of wealthier applications who get a boost in admissions from a policy that favors legacy or

alumni donors, for example. haidi: have they been successful in the endowments, like harvard and yale? >> know we have seen as a couple times before. there was a bill in connecticut and massachusetts. harvard is an exceptionally big target because it has 50 billion dollars, but the u.s. government was successful in taxing college endowments in 2017 as part of the republican led tax cuts. however that had nothing to do with education, it went to fund corporate tax cuts. it will be interesting to see what happens. the bill was introduced, there was a committee last week. advocates for higher education say they do not have a lot of support but we will see. shery: we know college endowments have been a target for lawmakers. how important are the endowments for the colleges? >> they are vital. they provide everything from financial aid -- harvard has one of the most generous policies.

families who have 85,000 or less in income go for free. they find everything. research, professor salaries and they make schools competitive. taxing endowments has been fairly controversial. they have lobbied to get rid of the tax, one .4% on net investment revenue since it was past several years ago. shery: janet, great to have you with us. bloomberg's higher education finance reporter with the latest on elite college admissions in the u.s.. haidi, the countdown has started. we are going to see the launch of another social media platform as if we did not have enough of them. this is a textbased conversation app that is seen as a rival to twitter and of course we know how many challenges twitter has faced since elon musk bought the company last year. technical glitches that we have all experienced, content moderation problems as well. and we know that meta-is clear

about wanting to push users with chief product officer craig cox saying that this would be their response to twitter. so this platform is going to be made available soon and we are expecting to see -- to get that download as fast as we can i guess. another alternative to twitter. haidi: another alternative, the textbased conversation app on the app store, the page says it will be available july 6. later in the eu because of regulatory concerns over data sharing. between the new threads platform and instagram. but you know, you talked about all of these issues of twitter and a lot of the changes. blue check verification being replaced with paid subscription offerings. it is hard to tell how big the exodus has been in terms of a lack of information on that data but this is just the latest alternative. blue skies is another one that

is invitation only. mastodon as well but we are seeing big moves when it comes to tiktok wanting to be a video app platform, we are seeing that the threat to amazon is starting to emerge with a $20 billion shopping pilot. it is really focused on the indonesian market. a template or a testing ground for tiktok's global e-commerce push. this is a livestream up market place, a gold rush for entrepreneurs looking to make money off of what is the world's most popular short video app. so tiktok's shop is the fastest-growing growing feature with apparently a burgeoning fan base across southeast asia. this is going to be a critical kind of battleground for tiktok as it faces the possible ban in the u.s. market on national security. it is clear they are trying to diversify and take some other market segments elsewhere. shery: which is interesting

because this u.s. livestreaming shopping did not take off here in the u.s.. instagram before selling products when livestreaming, they cancel that. it will be interesting to see how much that spreads in southeast asia and other asian economies. coming up in the next hour, asset management tells us why they expect global central banks to be hawkish and amp weighing in on the future of monetary policy. this is bloomberg. ♪

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>> you are watching daybreak: asia, coming from new york, sydney, and hong kong. haidi: counting down to asia's majort