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haidi: good morning and welcome to "daybreak: australia." i am haidi stroud-watts in sydney. annabelle: i am annabelle droulers in hong kong. we are counting down to asia's major market opens. shery: good evening from bloomberg's world headquarters in new york, i am shery ahn. the top stories this hour. u.s. stocks fall for a second session, where treasury yields spike in surprisingly strong private hiring. attention now turning to friday's real numbers for more clues on the fed's next moves. haidi: jeanette yellen to hold talks with the chinese premier on friday, the first formal meeting of her beijing visit. shery: plus, more than 30 million users sign up for threads on its first day, as elon musk's lawyer accuses meta's of using trade secrets. take a look at how features are coming online after we saw u.s. stocks and treasuries wholly through the new york session.

the s&p 500 seeing its worst day since may. the private hiring data came in strong. but also we had that services sector expanding in june at the fastest pace in four months. so we have treasury yields rising across the curve at that means the treasury yield rose to a 16 year high at one point, highest since 2007, even topping 5%. the 10-year yield is above 4% as well. we were watching crude prices as well. choppy trading day. a bit of upside in the asian session. we heard from saudi arabia that they raised crude prices for asia, europe and the u.s. we had broad risk-on sentiment was also impacted markets. here to discuss more in the u.s. economy, we have u.s. economy reporter tarina sarah everhard, and cross asset reporter emily graffeo. we had seen the adp numbers and

also the jobless claims numbers coming in ahead of time of the friday periods. what are we expecting? jill: tomorrow i think we are expecting a continued robust labor market report. we saw the adp data today, half a million jobs gained in the month of june, that is broadly what economists are expecting for the payrolls data that comes out tomorrow morning, that is the official government report. and what is the latest messaging that we are hearing from the fed? >> this is concerning for the fed, of course. they want to see a cooling in the labor market so that in turn, you have inflation come down a little bit. so this is good news for that is, -- is good for the economy, but not good news for the federal reserve. today we heard from the dallas fed president lorie logan. she has been a hawkish member of the fed, but she reiterated this

message coming out of the june fomc meeting that there is likely going to be more policy tightening this year. the economy is not quite doing what officials want to see. where we have seen core inflation in particular stock in the trend. we have seen this tight labor market continue. shery: andrew saul reaction in the markets. stocks under pressure. and not only treasuries and are pressure, but global right. emily: it was good news for jobs but bad news for markets. it really was a surprise not only for bonds in terms of the fed repricing. now, swaps market saying we will get a 25-basis point hike and maybe one more. but even on the stoxx side, it is not jiving with what we are hearing from companies when it comes to earnings. they say they are not planning on hiring so much, then we have

this economic data that doesn't match that. i think that is why we saw such a large equity market reaction. which also hammers home the idea that the recession that everyone was positioned for is just not here. the job market is still really strong and investors are not exactly trading like it is. haidi: and all of this is setting up for that key jobs print tomorrow. emily: yeah the bond market action tomorrow sets us up in an interesting way in terms of how the market will react to the jobs number tomorrow, because we already have a hard labor market now in the forefront of investors might, so the bar has been raised now for how much of a surprise we will have to get for this jobs number in order to jolt markets to react again. we had the two-year topping the 5% level, the 5% level, the 10-year making double-digit basis point moves, and stocks falling. i was talking to a few sources.

one of them said markets are pricing in 50% odds of a 25-basis point hike if we get a strong jobs number and we would go to more rate hikes. a few other sources said a lot of it is already priced in already and we might just get a friday summer trading day with this jobs number if it comes in in line. if it beats, it will be the 15th street payrolls beat. shery: we have the fed minutes this week, but whatever hearing directly from the u.s. fed officials right now? ? catarina: we just saw the concern over an overheated economy and no meaningful signs of a slow down. they talked a lot about the persistence of inflation. you have seen some officials come out and talk about the resurgence in goods inflation, which we really were not expecting, and this is not a great development.

and he saw that in the minutes as well. so overall, use broad support for a pause at the june meeting, but also broad support for more policy tightening later this year. haidi: u.s. economy reporter catarina saraiva, and cross asset reporter emily graffeo you're there, thank you. u.s. treasury secretary janet yellen will meet with her chinese counterpart on friday. jodi schneider joins us now from washington. what is on the agenda today as she goes into this day of meetings? jodi: so i think this is the getting to you phase of the stocks. they are still ruling out the red carpet certainly in terms of policy officials, she will be meeting with the premier, the former vice premier, the former head of the china central bank,

as well as american businesses. we don't know exactly who yet with the businesses, but american businesses doing business in china. so it is full of policy chats. but really we don't expect -- the expectations are fairly though for any decisions being made between the two countries. but given that it is the world's two biggest economies, it is really viewed as important that they are sitting down to talk. secretary yellen was supposed to come earlier. and given the spy balloon incident and some other things, some tensions that arose, she didn't make it here yet, but we did see secretary of state blinken here several weeks ago. and we just got word today that john kerry, the environment envoy, will be going in, maybe as soon as a week. so this is clearly an attempt by both administrations to try to

calm some tensions, even though in the policy sense, they are upping them. the chinese, of course, announced export controls this week, really curtailing exports of some key metals that the u.s. and western allies need for technology, and the u.s. in recent months has severely restricted access to the chinese of some advanced chipmaking equipment that comes from the u.s. and some of its allies. shery: not surprising, we have the european union pushing back on those export controls by china of gallium and germanium. jodi: yes, the european union is saying that the way that it was done was not proper, they didn't get enough notice and that they are really looking for some exceptions to those export controls of those metals, which again, are very key to

chipmaking. so we are really seeing pushback. china says it followed all the rules it wanted to follow, and we will see if that you countries will file formal complaints, which they have threatened to do. haidi: the u.s. climate envoy john kerry is also headed to china. so a flurry of diplomatic interactions continue. what are we expecting from that trip? jodi: one of the areas that the u.s. and china are hoping to reach some kind of agreement on things outside of the real dispute areas, and of course no one expects taiwan to come up, that is eight real dispute area obviously, so they are looking for ways that they can chat and try to make some progress. of environment is one. this is in advance of the world talks on climate this fall. and john kerry, this will be his third trip to china since he was

named as climate envoy at the start of the biden administration. so clearly they are hoping that they can bring along china on some of these issues and then they can say they had a few wins which then they can hope will translate on the economic front, to nullify or at least blunt some of these tit-for-tat trade moves that have been happening in the past few years. interesting, by the way, that janet yellen landed in china yesterday, five years after former president trump started the first phase of those tariffs with china, which still remain and which president biden has not yet removed. shery: yeah 300 plus billion dollars of chinese goods. our political news reporter for bloomberg tv and radio, jodi schneider, joining us from washington dc. let's turn to annabelle for how

we are setting up for the market opens across asia. annabelle: we are getting perspective as to what sort of economy janet yellen is entering in china. yesterday we saw the h-shares gate in hong kong, but it does track the mainland economy, suffering its worst day since january, a slump of more than 3%. what is driving that is the concern around the weakness in the chinese economy. we saw bank stocks leading the losses in the session. we will get more details just ahead. essentially what you need to know is, strategists say there needs to be more reforms not just on the fiscal side, but structural changes that also need to be addressed in the economy. hong kong is not just about the chinese economy of course, the other side of this, hong kong is hit by what happened with the fed. this led to sentiment turning bearish after we had the fed meeting minutes. clearly the jobs data overnight also sets it up for a risk-off

session today. let's look at broadly across the session, futures are pointing to a much weaker start. also keeping an eye on what is happening in the yield space, the kiwi 2-year yield is higher. that is the last close we had on the two-year gilt, affected not just by the fed, but also the boe, because they said inflation is much too high in the u.k. economy. the hawkish fed also weighs of the japanese fed. the boj was expecting a moderate response to the yield curve control. so they could be keeping a lid on the losses. we are still at the 144 level. haidi: wti is seeing some slight gains after saudi arabia lifted prices for its flagship arab light crude to all regions,

signaling confidence in market demand. this has caused tightening of expectations from buyers return to the atlantic basin and tightening the brand and u.s. crude markets. wti is 10% lower this year, china's lackluster economic recovery be one of the key reasons on the demand side. >> china growth is healthy. we are monitoring the market and we will take whatever decision. i am cautiously optimistic about the second half of the year. shery: coming up, sega withholding its biggest franchises from third-party blockchain giving projects, as the crypto winter persists. our exclusive interview with the co-ceos later this hour. but first, pepper international tells us where the global tightening cycle could be doing more harm than good. more on their market outlook, next. this is bloomberg. ♪ asier.

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>> i remain concerned about whether inflation will return to target in a sustainable and timely way, and i think more restrictive monetary policy will be needed to achieve that for mc's goals of stable prices and maximum employment. haidi: dallas fed president lorie logan there on the fed/

interest rate hike policy. our next guest says the fed should move the 2% inflation target and stop trying to crash the economy. joining us is carol pepper, ceo of pepper international. the economy is doing ok, right, there is still an opportunity for this to be a soft landing. you think investors are running out of time to reposition in case things don't turn out as optimistically as they would hope? carol: no, i don't think investors are running out of time, the fed is running out of time because if they don't reconsider this 2% inflation target in light of what is happening in the world today, they could cause really serious problems to the real estate and the banking market, completely self-generated problem. it is unrealistic at this point in the cycle to be looking for 2%. we have major changes coming naturally.

ai will naturally increase productivity without additional massive hiring. new climate technologies are naturally reducing the input and energy prices over the next few years. and we have a war going on that hopefully at some point will get solved, say in the next year. so i don't see the point of going for this artificial number. . who said it has to be 2% inflation? i think that some ridiculous. if they were going for 3% or 4%, the entire conversation might be more different and they might be more tolerant. i just don't see the ability of the banks and the real estate sector to be able to absorb this artificial and frankly dangerous number that somebody made up, that they feel they have to stick to post-pandemic. i don't think it is necessarily the right way for the economy to go. shery: how are you positioning at this point? carol: well, i think a great place to hide until we know what the fed is going to do is keeping your powder dry in money market account yielding 4% or

5%, a no-brainer that many corporations and individual investors are doing. i still think growth will be value this year, the large-cap growth index is up 28% versus large-cap value of 4%. i don't see the value stocks catching up because again, they are big macro drivers, those being artificial intelligence, more technology integrated in everything, defense spending, they are a lot of things becoming more technology oriented on the defense side. climate technology being implemented not only here, that in europe. those are all growth ideas. it is difficult for a value to do well in the high inflation environment with high interest rates, because the slower growth means there margin compression is even more painful than it is for growth stocks. so i say, stick to the growth stocks, buy on fear days -- today was a fear day for

example, and hide in cash until we see what the fed is going to do and when they are going to come to their senses. i think they are being too reactionary. shery: the tech bounce we saw in the first half, of $5 trillion, that does not concern you? carol: know, because we are at the beginning of some major, major revolutions. i manage money for family offices and people with over $100 million. we have five year and 10 year time horizons, sometimes longer, so you shouldn't be in equities if you are daytrading. if you are investing, technology is a story that will continue to churn and power through the next 20 or 30 years or more. that is still the case. older industries will continue to die out, so be careful where you look at value, there is a lot of dead dogs in value that can't come back because the world has changed too much.

shery: going back to the jobs numbers today and the job numbers we will go tomorrow, this chart on bloomberg shows how the adp numbers closely match, the payroll numbers that we might get later in the week. does this give you an indication of, if we still have a strong labor market, of how healthy u.s. consumers will be and what are the implications for markets? carol: i think because u.s. consumers are employed, they will continue to spend money. the spending from consumers has not really slowed down all that much given the fact they are paying higher mortgage rates and given the fact that inflation, gas prices have come down a bit this summer. so as long as the consumer is healthy, markets will stay healthy. what will change is that margins will compress, but they will compress across the board, so on a relative basis, the corporation will continue to have to pay the high interest rates. they will all face that same headwind and then growth will continue to win as long as consumers are buying.

they will continue to stay healthy. the u.s. market is healthy when the consumer is pending and they will continue spending because they are employed. you look at it that way, the consumer numbers are good news. it is not realistic to think they can crash the market by raising interest rates and there will be more massive layoffs. i don't see that happening because there isn't enough slack in the economy to do that. people still are looking for more workers, and long-term workers. shery: is the idea that we don't need to get to that 2% inflation target based on the fact that we are seeing this inflationary pressures coming from technology advances as well? carol: that is correct. technology advances. and energy is shifting, the cost of energy is going down rapidly. we are not going to see $150 a barrel oil, as much as the saudis want to that. there are other forces starting to discipline the economy. it's not going to happen in two months, but over a few years.

look at the uptick in electric vehicles and how much that saves consumers. people are putting solar in your home, they can cut energy bills radically. and the government pumped a lot of money into making these things happen. give it a little more time and we will see these natural forces containing costs, large sectors of ongoing costs which will allow the consumer and the market to keep going without a major recession. of course, they can crash the market. if they raise interest rates, they will crash the market and it will hurt the banks and hurt real estate, but it is unnecessary to keep the economy balanced so i just hope, don't do that. hate in money markets and take advantage of their stupidity in the meantime. shery: great. carol pepper, thank you so much for those market recommendations, founder and ceo of pepper international, with

her views on the outlook on equities from here on out. plenty more to come on daybreak "daybreak: australia." this is bloomberg. ♪ all these walls gotta go! ah ah ah! i'd love a second opinion. take the first step to see if your small business qualifies.

shery: here is the latest on the corporate front. j.p. morgan and goldman sachs are leading a group of banks backing gtcr's purchase of worldpay. the 9.4 billion dollars in debt would make the transaction the biggest buyout financing in over a year. gtcr plans to acquire a 55% stake in the company which handles car payments for global businesses that would value the company at over $18 billion. bloomberg has learned that private equity firm l catterton is considering options for birkenstock, and and ipo. the shoemaker could be valued at

more than $6 billion. qatar 10 acerta be working on a listing in the u.s. as early as this year. toyota is said to be selling socially conscious debt denominated in dollars for the first time in more than two years. the chinese carmaker is raising $1.5 billion in a benchmark-sized sustainability bond in three parts. a 10-year security is set to yield 1.08 percentage points above treasuries. haidi: you are tuned into "bloomberg markets: asia" on monday with our exclusive interview with sherman lin, talking about the market strong performance this year and what to hi, i'm jason. i've lost 228 pounds on golo. so when my doctor told me i needed weight loss surgery, i knew i had to make a change. golo's helped me transition to a healthier, sustainable lifestyle. i'm so surprised just how crazy

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shery: some crucial meetings on

the agenda for u.s. treasury secretary janet yellen later on friday as she continues her 4- day visit to china. she is preparing for meetings with the format vice premier liu he, format pboc governor, and premier li keqiang as well. our next guest says yellen is embarking on an empty trip to china. let's get more perspective with derek scissors, senior fellow at the american enterprise institute. why are you calling this an empty trip? is there anything feasible that can be achieved? derek: if the point is to set up more communication, and it is not empty. the way janet yellen described herself is she needs to meet these people face-to-face. she'll meet the secretary of the treasury for another year and a half, i am not sure what will be accomplished in the next year and half that she needs to meet these people face-to-face four.

so i think this is a trip that part of the u.s. administration thinks is necessary because they think talking is important. in terms of accomplishment, the only accomplishment will be at the next meeting. shery: there is also a basic sense from the administration that they want to separate trade and economic issues from broader geopolitics, right, how much will this help in pursuing that, and is that the right strategy? derek: it will not help at all, because of the chinese side. one side is welcoming secretary yellen but they will not take calls even from the u.s. defense secretary. they are making it clear that they have their own goals and that they are unhappy with the u.s. defense policy. they just rejected a trip from a european foreign policy advisor. china will talk to whoever they want to talk to. i don't think it is possible to

separate the two issues anymore. maybe 10 years ago. but as we all know, the biggest issue is probably technology. technology crosses economic and military lines. haidi: i am also curious as to why she is meeting with the former vice premier liu he, and the former pboc governor. what is the intent in that? derek: i think those are people that she knows and she has met with before. there is value in saying i am, to see old friends and the chinese side respects that. if you want to be cynical about it, secretary yellen probably longs for a friendlier economic relationship. when zhou xiaochuan was the head of therefore, f.c., it was friendlier. -- was the head of the fomc, it was friendlier.

this haidi: resumption of conversation as a whole, from blinken's a trip to this trip coming up, how do you view it in its totality? derek: i would draw a distinction here. between security issues and economic issues. it is reasonable to be concerned about lack of security communication, because you could have a security crisis that comes suddenly. two ships running to each other or two planes run into each other and no one knows what is going on. you need to be able to talk to your counterparts. economics does not move that quickly. it is unfortunate that if people increase u.s. communication, you don't have the military or the defense ministries involved, that is really where communication is necessary. when i look at these three trips, i think it is a waste of time. if it leads to better crisis

communication among the militaries, it's not a waste of time. if this leads somewhere else, it is one thing. by themselves, they are just pop talk shops. shery: what if it leads to trade tariffs being lifted. do your point about economics moving slowly, this chart on bloomberg shows how both economies have started depending less on each other when it comes to trade, but they still depend heavily on each other. can we expect any sort of breakthrough on trade, especially when the u.s. realizes that these tariffs, including secretary yellen who has talked about the tariffs fueling inflation. derek: well, let's start with a fact that i think people don't remember which is that secretary yellen is not in charge of tariffs. treasury does not have authority over u.s. tariffs. she can't negotiate the tariffs because it's not her job. it would also be extremely

strained for the biden administration to have held onto tariffs during a period of u.s. high inflation which is passing, then go to beijing and change policy where inflation is going down. that would be very strange. i think the discussion is more likely to try to prevent economic escalation. for example, china sees the u.s. moving forward on export controls for semiconductors and china has responded by putting export restrictions on the metals used in semiconductors, the goal would be to stop that cycle of escalation if it is possible. rolling back tariffs, i know there are rumors about this, that would be a very odd outcome for the secretary of treasury visit to beijing. haidi: we heard yesterday, they were trying to provide clarification when it comes to the banning of some of these key minerals, saying they aren't

restrictions and not a blanket ban. we are also reporting that the e.u. is trying to work with chinese officials to narrow the scope of some of these restrictions. is this the playbook, where if something comes out that potentially placed with the domestic audience and then you see all parties working together for a feasible way forward in the trade and strategic sense? derek: that very well could be right. we have seen this on both sides of the pacific -- the u.s. announces a big role on semiconductors, we still don't have the final rule, now china has announced of these restrictions on materials exports, but they have not told us what the volumes are or over what period. so the restriction could be pretty minor. so i think there is a possibility that there is more bark than bite here. i think the restrictions are a reminder to foreign semiconductor producers, hey, if you make in china, you have these materials that are low

cost. if you meet overseas, maybe the materials will be available at a low cost, maybe they will not. china used that in regards to rare earths and i think it contributed to the locations of electronic vehicle production in china. they might think they can do that again. i don't mean to write these restrictions off, but it is possible they may turn out to be less binding than some feared. haidi: always great to chat with you, derek scissors senior fellow at the american enterprise institute. let's look at some other top stories, chinese president xi jinping has told the military branch in charge of the taiwan strait to strengthen drills and boost its capacity to win wars read state television saying the security situation faces greater uncertainty and instability. china in recent grants wrap up military activity off its coastline.

president biden has agreed to send a bond to ukraine that fulfills a request from president volodymyr zelenskyy, and ignores concerns from arms-control groups and human rights activists about potential harms to civilians. a coalition of countries are parties to an agreement banning the use and sale of that weapons. belarussian president alexander lukashenko says the wagner mercenary chief yevgeniy prigozhin is back in russia. prigozhin leads the wagner private army that staged a rebellion last month against the kremlin's military leadership. he was reportedly expect to belarus under a deal to avoid russian persecution for armed mutiny. shery: time now for morning calls. we are watching the spike in bond yields. traders recalibrating their bets for the fed and other central banks. annabelle joins us to discuss the action. investors are yet to make peace with the higher for longer narrative question mark

annabelle: that is what it seems to be. the adp jobs number came in overnight with nearly 500 thousand jobs added in june. we have been discussing the moves we saw in the bond space and also what came through in stocks. certainly a lot of people were surprised by that. it tells us that not only are we expecting a very robust, nonfarm payroll data today, but also, the fed has more work to do and a lot of investors are saying this. micro intelligence is one of them, that is socially it appears that the economy in the u.s. is not slowing fast enough. that is something we heard from the boe overnight as well, the governor saying that inflation is still far too high prude the question becomes, how do you trade in this market? what has been also interesting to note is that, whilst we have seen bond yields rising steadily in anticipation that the fed

would need to continue hiking, stocks have been relatively resilient to those moves. particularly the large-cap, or megacap tech names continued to gain. but we have seen bond and stock correlation, both declining at the same time. not good news really for any investor in the market, particularly for those following the 60-40 portfolio. haidi: and there are some say that the fed needs to do more at this point. annabelle: john taylor is one of them, he is behind the taylor rule and says central banks should be hiking. when gdp is above target. he was at an event at stanford university and essentially saying that, yes, the fed has more of a ways to go, particularly as the inflation issue is still yet to be contained as well. in terms of what else he said that the fed should be looking at closely, as a way to try to

bring down inflation, it would also be a way to engage with the government as well. he says that budget balance needs to be brought under control to aid noticing makers with the economy. haidi: not smart to come here on "daybreak: australia." this is bloomberg. ♪

haidi: samson electronics will report second-quarter earnings on friday and is expected to log its august quarter revenue fall in about nine years. our chief tech correspondent mark gurman joins us now. what is the biggest contribution towards this downside weirs expected to see -- that we are expected to see. mark: this is not good news for samsung going into the announcement of their quarterly earnings. the anticipation is that the crime will be the biggest on a quarterly basis since 2014. analysts are expecting sales around 62,000,000,000,001 with operating profit around 531 billion won. and also operating loss is about 3 trillion won. you can see this with chip shortage or had a few years ago, the ongoing effect of the global economy. also they are having issues

selling memory from their memory supply part of the business into their own smartphones and into third party smartphones, as well as their on pcs and third-party pcs and you can see that putting that with the drop off in sales of phones not only from samsung, but other players globally as well. shery: could we see some bright spots in the results, we know that seasonality could help their smartphones at least? mark: you are also likely to see a decline in the smartphone site for them, because consumer at market anticipation of what they are announcing at the end of july. at the end of july they will be holding an event, announcing a pair of new foldable forms, and new smart watches, new galaxy earbuds, those are all likely to be extremely popular, these are the fifth generation versions of their foldable forms. people have been looking out for

these. . what we're liking to see is a bit of a pop after those new devices go on sale in august. samsung shareholders should be looking forward to that rate ahead of iphone season in september. . so it should be an interesting fall and samsung has more to gain with these new vulnerable devices within the next couple of months or so. shery: mark gurman joining us from l.a. let's now turn to a japanese company, sega, pulling back from blockchain gaming following the meltdown in the crypto industry. the company will withhold its biggest franchises from third-party blockchain gaming projects, to avoid devaluing its content. >> the game business has been growing, thanks to the evolution of technology. web3 definitely can be a potential contributor to that growth. so we have been really looking for that opportunity carefully. but i don't know if we have totally jumped into web3

business. i mean, we have been searching for potential, we have been investing in some areas and we are still in the process of searching. >> not really jumping on, more like dipping your toes into the web3 tech? >> yeah. halfway. >> one foot in, one foot out. >> but carefully, seriously checking the opportunities. >> ok, because we have been hearing executives talk about a super game coming sometime in 2026. is that correct? >> could be. sometime around that area. >> and that will incorporate all of your ip's, for various ip's from your catalog? >> not in that direction yet, but it is likely that the ip will be utilized. >> how about blockchain? will that play into the super

game? >> we are not qualifying, but we are also not denying the potential. >> when it comes to incorporating web3 into video games, it is not secret that gamers, some of them have an aversion to web3 and incorporating that technology. they say it feels more like pay to win, taking some of the fun out of playing. what do you say to that? >> we are very careful in utilizing web3 in, the game because we understand that, especially western gamers, they don't like it, they are not a big fan of the web3 initiative. so it is true, a lot of initiatives are focusing on play to earn concept. pretty much focused on money. but in no way, in the blockchain technology which is a major part of web3 initiative, it's not

really for money. it can be seen that way. but we are trying to figure out what is the right way, the best way to entertain the audience in a way. so we are still evaluating. >> ok, so you understand the voices coming from that gamers. why does sega still see a future. how do you envision incorporating web3 into sega? >> because the game has been growing, thanks to the evolution of technology. i was in the music business before. the music business had a hard time containing that kind of evolution. the game business can be modified or evolved with the evolution of technology. we are in that kind of position.

so we would rather take it as an opportunity than threat. haidi: the co-chief operating officer shuji utsumi there speaking with bloomberg's kurumi mori in curator. you can watch as light and see past interviews with our interactive tv function, tv . you can also dive into any of the securities in the function and also sent us instant messages during our shows. this is for terminal subscribers only, at tv . this is bloomberg. ♪

shery: so, this time yesterday we were counting down to the launch of meta's new apt threads, direct alternative to twitter. 24 hours later, 30 million users have signed up. for more, let's bring in our next guest. are you surprised how well it is being received, and is this an indication of how sustainable it will be, how sustainable the interest could be on this new cap? >> i definitely knew that there was pent-up demand for a twitter alternative i did not expect it to grow that fast. it's a testament that people did want an alternative to twitter. second of all, the fact that

threads is connected to instagram give that a huge link up in creating a network, because when you go to threads, the same public figures, influencers, brands that are on twitter and instagram are there. so it already has that sense of being an influential place to post, which was what was missing from twitter since elon musk took over. haidi: i have to say, as someone who is, like, i don't need another social media platforms, the onboarding process was so smooth, that i almost unconsciously did it right. we know that sign-ups does not necessarily translate to active subscribers or users, right, is there sort of a window that threads, meta need to take advantage of to convert those

into long-term users? sarah: we will have to see it continue to grow. the social networks have this initial surge of interest and excitement, but really it will be about, when you have something new that you want to share, a video of one of your segments, do you click on instagram first, twitter first, or threads first? having threads as part of that instinct for our camila: and, building that habit, that is still ahead. we have seen hype build around other social products. even apps like clubhouse that got really big relatively speaking, ended up shrinking when people just felt that they couldn't build a habit out of it. so we'll have to see if they are able to maintain and also keep up with the demand for what people want the product to turn

into, all the features and tools that users are requesting. shery: i was going to say, is this the final look? what sort of features can we expect? sarah: no, this is the bare-bones version. i think instagram is working around-the-clock to try to make it better. i talked with users today. people want better search, they want to be able to toggle between accounts, be able to schedule posts, especially if they are professionals on these apps. there are a number of things, direct messages, being able to use threads without having it lead to instagram, all sorts of things on the wish list. but for now so people are just happy to have an alternative network. haidi: bloomberg sarah friar with the latest. the novelty is still yet to wear off. that's look at what we are seeing when it comes to trading in bond markets in australia and new zealand. we cause yvonne's, spiking to

join the global push towards 2022 peaks that we have seen. bond yields in australia jumping to the highest we have seen this year. we have seen this confidence that the worst is behind the debt markets, and of course, the central banks are determined to keep going to tame inflation. we last saw 4.14 in october. we have seen that balance out a little bit, but of course so much of this is yet to be seen when it comes to what we will see going forward from the rba after they put forward that hawkish skip this month. that is it for "daybreak: australia." "daybreak: asia" is next. this is bloomberg. ♪

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