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>> good morning. welcome to daybreak australia. we are counting down to asia's major market opens. >> u.s. stocks erased gains. the yen -- >> apple's revenue forecast fuse -- feels optimism on computer. >> as barbie gives michelle a massive box office hit, the plans for hollywood and for china. now for a quick check on wall street. we had a big rally right out of the date -- out of the gate. jobless names falling to the lowest -- the lowest since february.

maybe they can achieve the soft landing so we can buy stocks. then traders caught wind of the story from nikkei news overnight. it could move out of treasuries and into jgb's. the dollar weakened. oil having a pretty good day. also driven by the sense that the fed could be close to ending the rate hiking cycle. west texas intermediate close above $80 per barrel. you can see the price at 7978. you can see on the s&p and the nasdaq futures that the red from earlier is turning to green. a bullish revenue forecast showing computer components like

chip is improving. third quarter sales -- it seems like it is carrying over into after-hours trade. the european central bank signaling here is what christine lagarde said. >> we have an open mind as to what the decisions will be in september. this might vary from one month to another. >> it is the end of the central bank bonanza as we get to the

end of this week. friday because the bank of japan decision. in repeated consistent guidance we had had. he does not think inflation is sustainable. at the same time, you see this among all the major peers here. we are seeing protection demand. fx traders are concerned about this. we saw the yen rallying as much as 2%. 1% against the grain. kathleen, you have been

following the boj for a long time. if this happens, it would be surprising. they are trying to communicate to the markets. if there is a sudden change, we might throw some of that communication skill into question. it was above the forecast. much better than the 2% previous number. the forecast was for 1.3. jobless claims down, down to 221,000. you're going a little bit higher.

also interesting how that caused a rally that the boj did. >> walk us through the u.s. session. >> it was a pretty positive morning. we had a lot of data point into a soft landing. this after jerome powell he was going to be very data dependent. this morning, we get strong economic data and also that personal consumption data coming in. suggesting some does inflationary growth. we started to see a pickup in yields. the bank of japan has been the last global central bank to keep this also loosen monetary

policy. it would close -- caused global bond yields to spike. -- they don't know how much higher u.s. yield can go. there is a lot of concern in global bond markets about what a boj tweak could do to assets overseas. >> it comes down to the carry trade. if we were to see a modification of the yield curve control and we worked as we were table -- we were able to see that yen strength in, that could be a road to profitability. and perhaps what we saw such a big selloff.

they did not say they were going to tweak. we'll have to wait and see. because a very large selloff in stocks. there was emily graffeo. let's look at intel shares. they are jumping in after-hours trade. it looks like it is a comeback underway. investors alike had a pretty low expectation. >> things could not get worse. you have only to drop into the after-hours chart to see how investors pretty much staged a relief rally.

and they continue to hold that rally during a conference call. the second quarter surprise profit. a sign that the long-awaited comeback appears to be underway. third quarter sales will be almost as much as 14 billion. this is not versus the expectation. revenue fell. that still be the projection. this is fresh evidence of that. the company is still -- the company has taken a beating

from that slump in pc sales. the factory network is critical. stock has been up but it has fallen behind its rivals. nvidia and amd. >> what was the take there? >> it seems you can be in the tech industry and bring it up. the pc is an important ai device and ai will drop pc sales.

a lot of them were ai related. all of their big cloud customers are spending big on ai trading. he believes the server environment is mixed overall. he knows he's healthy inventory levels there and sees a sustained recovery. sustained is the key word in the second half. intel says it will be in -- it picked up some market share in the pc chip market. there you are looking at the one year chart. the shares are up some 30%. this is a bit of a kick in the

pants for those who were concerned. the turnaround is still in progress. >> su keenan with the latest. let's look at how our asian markets are shaping up this final find a session of the week. this is the picture when it comes to australian futures. what a bit of uncertainty about whether bets will be removed from this market. we are seeing a little bit of pressure on the aussie dollar. we are washing dalian. the big move when it comes to the end. fx traders or a large portion of them are looking at potential protection.

the boj may be thinking about or looking to discuss tweaking yield curve control there. the consumer confidence index for july coming in at 83.7. some further momentum a loss when it comes to the kiwi consumer. quick speaking of the consumer, we will be discussing mattel's some -- mattel's cinematic universe. the barbie movie is taking the world by storm. this is bloomberg. e-cig note

>> as we go toward the second weekend for barbie, the the

movie in global cinemas has generated over $400 million in counting. barbie, the doll has not given much help in second-quarter earnings. they are beating analyst expectations for a steeper drop in sales for a plastic version of barbie. now joining us for all things barbie and beyond is the chairman and ceo of mattel. always great to have you with us here on daybreak australia. i will start by asking, this has been a cultural phenomenon. did you expect this to really tap into the cultural zeitgeist of 2023 mark >> from the beginning, this was never about making a movie. it was about creating a cultural event, societal moment. we could not be more excited or more proud by the initial perception of the movie. it is not just doing really well at the box office but we see overly broad audience coming into the -- people coming.

two or even three times in the first week. internationally as well. the movie is playing extremely well. it is doing more in the u.s. on top of the success of the u.s.. it is really looking great across the world. going strong and we are not done. >> you say you are not done. she is as zero when it comes to the potential sequence. -- sequels. do you want sequels to barbie? >> we were in the first week. with the success of the first -- of our first movie, first movie, with the barbie movie doing so well, there would be opportunities. we always had this is not just about individual movies but we are looking to create franchises that have cultural residence.

this is pretty obvious given the success of the body -- barbie movie. quick speaking of the pipeline, there are 13 properties in development. can you tell us about where we are at in terms of the timeline and expectations for these films? does the hollywood strike really complicate that? >> we have a really exciting slate of different genres, different demographics. what is interesting is if you look at the barbie movie, but we are seeing is this is really a showcase for the cultural residence of our brands, our ability to attract and collaborate. we are talking about our capabilities to create franchise

engagement with our vans. the same approach is how we are going to apply to the other projects. in terms of creating unique expressions to find a different approach to interpret our brands, collaborate with partners, amplify our creative vision and continue to promote them in the marketplace is the plan. >> and china, the film is being well-received. it is third, nationwide. is that a good result in your view? it is not easy as market for western content. >> we are pleased with the performance and china. very excited by the performance overall. this is still without japan. that will only launch later in august. the audience reaction across the

board has been phenomenal. it really is a brand that speaks -- transcends cultures, generations with a very clear purpose to inspire the limitless potential for every girl. they made it relevant to everyone. the audience is very wide. it is barbie fans as well as anyone who is looking to be entertained and inspired by their interpretation of one of the most iconic brands of northern culture. >> sticking to asia, barbie opens in august 2 weeks from now in japan. what are you expecting here? the east asian markets have not been quiet as good as they were in china and other places. >> barbie is a global brand. we have to remember that barbie has been successful before the movie. barbie has been the number one toy brand in the world for two

years in a row and it has phenomenal reach and engagement before the movie. of course, the movie would amplify that even further. especially with how we see the reaction across different countries. we are very confident we will do well wherever it plays. >> can you imagine using other brands, other characters that are not so u.s. oriented? and building those and see what kind of response they would get around the world? >> our portfolio and overall slate is very broad at first. we have different characters, different genres. hot wheels is a movie we are developing with jj abrams. polly pocket is another exciting project we are developing with lily collins, lena dunham.

or rock them sock them robots with vin diesel. you can see it is a full slate and each project we played to different audiences in a different way. but always the focus will be the creating a unique expanse for fans all around the world. >> barbie did not plaintiff the enemies audiences. can you give us your view on how this happened? what happened? was it purely an accident? was it the case of wanting to appease to china? >> what we are trying to create is an environment where whoever is looking to view the movie can do that. this is about creating cultural moments and not just about a movie but engagement. i think it is really important

to say that when we think about people who by the product, they are not just consumers. they are fans. when you have an audience, the opportunity presents itself to extend our brand and is not just film but also television, live events, consumer products and merchandise, digital experiences. games, so forth. the opportunity is for mattel as one of the strongest portfolios in the world. it is very exciting. >> right. the fact that this is included in the movie, some would say you are trading in fans for markets in vietnam for the bigger market in china. >> i would not say that. the focus was global audiences to create a special experience for fans all over the world. and this is the focus. this has been the objective. we are very excited to see the reaction across all international markets.

>> fun, delightful. i am the only person on the planet who has not seen it yet. i want to see it very soon. thank you very much for joining us. donald trump for another indictment. now let's get more details from our political news director, jodi schneider joining us from washington. what do we know now? >> today we did not get another indictment from former president trump. we expected that might happen in washington from jack smith's investigation into january 6 and the former president's possible involvement there. this just in. we just heard from the justice department that former president trump is facing additional charges in the classified documents case. that is of the case involving

the documents that were found in the rate at mar-a-lago and the additional allegations are about wolf -- willful retention of national defense information. they were added to that indictment that was already in miami. we had the judge just recently decide to change the date he will have to go to trial in that case. that is not the january 6 case but we are seeing additional charges there. that is also jack smith case. that is very interesting. we are just getting this. we just heard from the justice department on this. this is really all we have at this stage. in the january 6 case, it is more likely if there was to be an indictment we would get it next week. perhaps on tuesday or thursday which are the days that the grand jury meets. there was a lot of speculation it could come today given the

fact that it is a thursday. and we had president trump himself having said earlier that he expected to receive the so-called target letter about this case. but the news is in that classified documents case, additional charges being levied against the former president. >> we are also watching multiple developers when it comes to the former president. in the meantime, trump is really dumping down. it is suggested that his allegation of election rigging is going to feature prominently in at least one of his defenses. >> that is right. he has said the election rigging , he said the government was against him from the start and and he is using this fundraising. a lot of fundraising appeals have gone up with this. given we just got this information from the justice department and the classified

documents additional charges, we don't know how he is going to respond. it is very likely we will hear from him on his social account. >> that was jodi schneider joining us out of d.c.. much more to come out of daybreak australia. this is bloomberg. ♪ sleepovers just aren't what they used to be. a house full of screens? basically no hiccups? you guys have no idea how good you've got it. how old are you? like, 80? back in my day, it was scary stories and flashlights. we don't get scared. oh, really? mom can see your search history.

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it meets on friday. let's bring in the executive economist at the more research institute. he was previously a board member at the bank of japan. let's jump right into the story from nikkei news overnight. there is going to be a serious discussion of doing something with the yield curve control policy. how much credence to put to this report? is it easy -- it is easy to talk about something, will they do something? >> i think there is something at about 50-50. it is not the change of the policy but just the change of the operational policy. >> the boj may allow this 10-year yield even the boj may

have not decided as opposed to change. i think it could be discussed very seriously in the coming meeting. i think it is a very good idea and a realistic approach to reduce the side effect of control. >> the boj owning too many babies at this moment. in terms of moving in october, this is going to be a big topic. this has to be the first question anybody asks the governor at the press conference. what you expect them to say about this? is it your view that there is a 50% chance they would actually raise the ceiling there on the 10 year jgb band?

>> maybe 50%. just a small change over the policies. but this is not a change of that policy. i think event -- financial market recognizes -- i don't think -- there is no saying that this kind of change would be decided today. >> when you say it won't be a policy change, explained that. i think a lot of traders and people say if -- that is indicating policy is less stimulative, less easy. the very definition i think you have is they are not taking that

negative key rate of zero. that is why it is not a policy change. explain that idea. >> the boj -- it shows that even if the international rate may stay, i think the boj may judge. they may achieve that 2% efficiency. otherwise, i think the boj -- any chance the boat -- if the boj failed, they would have to keep them for a long time this way. the boj will have to remove the side effect to undermine the continuation. the boj -- it is not the timing.

the boj still sticks to the idea that the rates go down 2% in the coming years. there is no chance that the boj changes that. this kind of small change is seen as necessary. the boj is cosigning this. >> that will be the biggest concern in the bank of japan. >> are way underestimating the impact of global risk assets? it was a pretty painful session overnight. we saw the impact across the bond market. we saw the end surging. there was only on the report they could be talking about the suite to icc. >> i think that the increase

could have an impact at the financial market. i think the boj could use the fixed rate operations to prevent the increase. i think the boj stars to use the fixed rate. that could minimize the risk that may increase. in a sense, i think the impact to grow the financial market >> we are deciding to see energy costs, and relational -- agricultural grants costs moving up again. that could give more of a boost for more sustainable inflation materializing sooner than boj policymakers are thinking now. >> that will change the focus.

the boj could apply focus. it is likely the boj could fix the forecast from the previous 2.5%. i think the boj is right to keep that forecast at the inflation rate. it may eventually go down below 2%. the inflation rate forecast may not have the impact they think. >> in terms of the global

outlook, it seems that one of the things the boj is concerned about his procession overseas. the ecb is definitely worried about the contractionary forecast in the euro zone. the u.s. got these very strong numbers. does that show positive -- if the scene for the boj worried about inflation coming back down from these elevated levels in japan? if such a large part of the global economy looks like it will remain strong? >> he argued it is very unclear. the u.s. economic session looks very different than previously expected.

the situation in china is deteriorating very sharply. i think the downside risk of the economy, -- the boj would have to stop the due process. cliff the recession could maybe have an impact to the launch meeting in the u.s.. it could push down and japan. the boj is still watching carefully global frustrations. but together the u.s. economy,

they could have problems in the future with the bank of japan. >> the executive economist -- let's check some of the main political stories we are following for you this friday. the italian prime minister has told president biden that the nations need to work together and adopt their approach to developing nations. biden is hosting maloney at the white house as italy prepares to take over the g7 presidency this year. lonnie is expected to heavily discuss a plan for italy to leave china's initiative. french prosecutors are said to be investigating rent and chinese citizens for sharing key chip technologies with her in paris including china and russia. the parisian reports that the suspects are executives who worked for the u.s.'s on semiconductor company. french industry minister told a ready answer that the alleged traders have since been stopped.

china's top housing official is stepping up pressure on financial regulators and lenders boosting efforts to revise ailing property sectors. the housing developer met with homebuyers that paid off previous mortgages to consider -- because hundred first-time buyers. he wants banks to reduce down payments and mortgage rates. much more to come here on daybreak australia. this is bloomberg. ♪

>> u.s. regulators have unveiled plans to impose capitals on big banks. get the details now with vonnie quinn. this has been foreshadowed by the vice for supervision. this is really tough stuff. >> it is tough stuff. as you can see, bank stocks did not move that much in response. it was a risk obsession anyway. we did get the details. i thousand pages worth of details. including the 19% capital boost. and for even smaller banks, that is going to be 16%. banks were expecting it but it is still now in black-and-white. to make banks over the

responsibly for the mistaken, the regulators also want plans to start to use two different methodologies where they are calculated there is taking. it results in a higher level of risk assets. it will mean a little bit more stringency when it comes to that. michael's message is this will better align capital requirements. say yes, it might make us less competitive. especially against some of our european aligned competitors. >> how much pressure will these proposals put on banks assuming no changes? >> thanks have time to respond and you know they are going to set -- say it is a huge amount of pressure on us. >> put into context. banks from 202220 $137 billion

in share buybacks. so when you think about that. the cushion they have built up for this since the great financial crisis is not even close to what they have given out over the last two years. the banks can raise this very quickly. there is a three year transition time. the fdic chair says the others have enough capital already to meet the proposed mandates. banks complained that they don't have enough cushion, it is not going to go over with regulators. west that is vonnie quinn giving us the latest on this big banking story today. let's look at meta now. they sought early success for threads. the tool racked up more than 100 million sign-ups in days. analysts that it could generate

about $8 billion in annual revenue. the cfo told us more about their long-term vision for the platform. >> it isn't readily early in his lifecycle. this is not something we expect we will monetize in the near term. we know will be launched new consumer experiences that there is a playbook around all of the product foundation work that needs to be done around core features that users will ask for, being responsive to things that users are looking for in the product, scaling it over time to a much larger user base, focusing on driving increased engagement and retention. those are all things we are going to need to do in advance of thinking about monetization. it is a playbook we have executed multiple times and we are excited for the opportunity to do that again. >> i think i'm right in saying you are facebook employee number 400 eight. -- 400 and eight. how has this comparative -- how

has this compared to bringing in instagram? >> i joined facebook back in 2008 when they were around 400 people. i have seen as launch a lot of things over the course of that time. instagram was already a popular app when we acquire them but i think over the course of that time, we have learned a lot of things about how to bring products to market, making about the trade-offs between standalone apps or features within existing apps. we have learned about our growth playbook and i think we are going to bring a lot of those lessons to the way we execute against our vision for threats. >> caroline ask you about the inbound interest. your existing advertisers say when can i put something on the threads platform? i know you're being conservative and careful about the development and mark emphasized a lot of product work needs to

be done as well. how do you see the roadmaps for threads going? how do you change the product so it is monetize a book? >> we are excited that there is interest both in threads, the consumer product and the eventual prospect of advertising on it but it is really just too early i think to be very specific about what the ad's business on threads will look like in detail. we are really focused on executing on the consumer experience. first making it a great, productive and friendly place for people to have public conversations, growing it to scale, investing and features people want and we will get to monetization at the right time. question was susan li speaking to bloomberg's ed ludlow and caroline hyde. look across the australian bond markets. this is really following the moves we saw in treasury markets overnight. the 10-year yield jumping 11 basis points. all of this on that you can report that the bank of japan

could consider or even just talk about a tweak to its yield curve control program, that really set the move comes to a variety of risk assets across the board in the previous session. the dollar jumping the most in about a month. we had u.s. growth exceeding estimates. bond investors to an extent making preparations for that just in case the bank of japan tightens today. we are seeing that being reflected when it comes to aussie and kiwi bond yields as well. treasuries also tumbled on the back of the u.s.. expecting to pick up more than expected in the second quarter and then extending those to the nikkei report and what boj official might be contending with today. we will continue to watch bond yields in particular. this will be really key. also watching from the fx implications of the move up when it comes to the dollar.

emerging markets are in a bit of a vulnerable session. much more to come. this is bloomberg. ♪ fabulous surroundings... but everyone's looking at thes for financial insights from merrill. is he hailing a ride to the concert hall? no. he's making sure his portfolio and retirement plans work in harmony. they want to adopt a child and build a new home. so they're talking numbers with their merrill adviser. she's not researching her next role. she's learning how to handle market ups and downs without the drama. personalized advice so impressive your money never stops working for you with merrill. a bank of america company.

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hucksters. bloomberg and say there is no decision yet on a possible appeal in the sec case about rebel labs. >> the commission has not acted on that and if the staff makes a recommendation, we will have the discussion of it. we will take it up then. i don't really have anything more for you on that. >> in the meantime, as we wait for this, what does it mean for your efforts around crypto? for your efforts to try to protect the consumer in these areas? does it complicate it? >> this field of crypto investing, a lot of investors should be aware it is not only a highly speculative as a class, it is also one they currently

should not assume they are getting the protections of the securities laws. because even though the securities laws apply without prejudging anyone. but you as investors are not getting a full fair and truthful disclosure. in the platforms, the intermediaries are doing things we would never allow or think the new york stock is changed or nasdaq would do. the platforms are often co-mingling and trading against you and have market makers on the other side of the break trade and we don't allow that in the securities markets and the securities laws are there to protect you and right now, there is -- this is a field rife with fraud. rife with hucksters.

there are good-faith actors as well but there are far too many that are not. >> you brought cases against crypto standards on this point but do you need to change tactic? does it change anything for those cases? >> i will not go into any one ruling but i think the securities laws are clear. if the public is investing in your project because they are anticipating profits based upon the efforts of that project or those entrepreneurs, congress painted with a broad brush. i would ask you this, it is like when you look at a token, you can find a website. you can find a ceo, you can find a twitter or nx feed. whatever it is called. there are entrepreneurs behind many of these projects without prejudging anyone of them.

>> there was gary speaking exclusively to bloomberg. japan front and center and focus. we are watching trading in the end. we did actually see a couple of different kinds of factors when it comes to fx trading in the overnight session. it is interesting that we see the yen strength in past the 140 level in the u.s. dollar. even as we have the dollar jumping the most in a month. u.s. growth numbers came in high. clearly feeling hopes of a soft landing. 139 is what we are seeing on the japanese at the moment. the euro yen has been really interesting given the ecb decision as well. all of that given the economic outlook there, the dollar yen trading at 93. of course, one of the things we are really watching it is this big rally we have seen in the

japanese currency as a result of some fx traders really seeking to give them some protection against -- if you ask most economists. especially boj policymakers in the weeks leading up to the unexpected situation, certainly that nikkei report suggesting posse makers are talking about it and it could come, really causing quit a bit of reallocation across the board when it comes to risk assets, not just currencies but we saw the following stocks as well as a big move in real -- in yields as well. about 1% against the greenback. we will continue to watch that decision very closely. ♪

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>> welcome to daybreak: