haidi: a very good welcome. annabelle: we are counting down

to asia's major market open. vonnie: good evening from new york. the top stories, u.s. stocks slide as china's plans to expand bans on iphones hit big tech. apple's two day slide wiping out $190 billion in value. . haidi: chevron strikes continue as a deal to avert strikes is unlikely. vonnie: justin trudeau tells us exclusively relations with china has stabilized but there is no immediate sign of improvement. let's get a quick check on wall street as futures opened following another down session for stocks. that is four out of five down sessions, five out of five for the nasdaq. we might be getting a bit of relief tomorrow but we will have to see. it is very early going. the two-year yield backed off its highs as well. we had fed speakers during the

week and john williams today seemingly pretty upbeat about the economy and where we are at and where the federal reserve is at in terms of being data dependent. the two-year yield. cruse off about $.13 but close to seven dollars a barrel. definitely studying -- stea dying. the sec is investigating ryan cohen's trades around bed, bath & beyond, so that is impacting bed, bath & beyond and other stocks after hours. a quick look at apple and some other chip stocks. they were some of the mega-techs that moved today and caused those indices to fall. apple down another 2.9%, taking nearly $200 billion off their market value. qualcomm got hit hard. this is more evidence the market is anticipating perhaps more crackdowns from china, or at

least a ripple effect. the one outlier was intel. intel could perhaps be a hedging strategy for traders who don't want to be caught up in this whole mess because intel has other businesses. annabelle: u.s.-china tensions in focus but also policy divergence that is really playing out in the currency space. offshore yuan dropping to a 16 year low against the dollar. it's pessimism towards china's economy and financial markets laying into it. you can see in the other panel we are very close to the weak end for the currency. even as we know beijing has sought to boost the currency by asking banks to sell dollars while tightening liquidity offshore to squeeze short bets. the daily reference rate has been playing into it, that is those lines in orange showing a stronger-than-expected fix for

54 straight days, the longest streak since bloomberg started a survey of estimates in 2018. it puts those moves into magnitude. that is feeding across into developing nation currencies. you can see in this chart behind me we are set for a fourth straight day of declines. so really coming within a whisk of raising the year -- of erasing. the year-to-date gains we have seen. only up .3%. it is that story of sluggish growth in china. prospects of stagflation in europe. persistently hawkish fed also playing into it. it's really that narrative of the king dollar dominating once again. vonnie: let's get more on that king dollar heading towards this longest rally in years. we have isabel leave with us. this continued strength of the dollar, what is going to stop it? isabel: we have the bloomberg dollar index rising for the

third straight day, pushing the gauge higher to around 1%. this is the highest -- the longest stretch since the index was created in january 2005. that is putting it on track for an eighth weekly gain. i think it is because investors are saying the fed has been hiking rates and investing in the u.s. and asia and europe is in the thick of it. this shows the fishers and men show -- now the u.s. has recovered faster and you see it with the dollar rally. dollar rally is definitely not good for e.m. currencies. annabelle: what has also -- haidi: what has also been not good is escalating concerns about apple. isabelle: that is correct. apple brought down all megacap tech stocks in the broader indexes. we have the nasdaq underperforming as apple slid

about 6.5% in two days, wiping out nearly $200 billion. apple reached a key technical level and investors are taking that is a bearish sign. this all signs scary and it may cause some investors to be worried. but we have some people saying this might not really be materially harmful to apple. after all it is a $2 trillion company. although this is not to invalidate what is happening because it might speak to the broader washington beijing relations. that is really the story. the future of the two biggest nations of the world. it is also a broader megacap tech story as megacap shares turbocharge this year powered by ai. many are seeing they are looking over stretched. vonnie: one of the things to impact the market was jobless

claims coming in softer than expected. but they showed the market is resilient. the labor market is still resilient. isabelle: that has been the ballast of this economy, that the labor market is resilient. but week to week data is choppy especially on holidays. we had a four day week week -- work week here in the u.s. but it underscores the fed may still have work to do because it really is showing the labor market is strong. that is what a lot of people who are talking to me are saying. that is what they are looking at. forget earnings and everything it is a labor market. unless they see weakening they think the fed has more work to do. haidi: isabelle lee there. we are also watching geopolitics. final preparations are underway as india gets ready to host this weekend's g20 summit. president biden is already on his way but xi jinping and vladimir putin will not attend. let's get more from haslinda

amin who joins us live from new delhi. what is on the agenda? they're pretty big implications from the absence of these key figures, primarily xi jinping. haslinda: that's right. good morning by the way from new delhi. 3:30 here in the capital of india. this is an economic forum made complicated by geopolitics. huge issues on the agenda. we have climate change, surging debt, reforms of multilevel development banks like the world bank. the issue is coming to a consensus, and that is increasingly becoming impossible. we talk about china. china at odds with the u.s. across a multiple of issues, at odds with japan over nuclear waste water, at odds with india over that disputed border territory. it is not just about china, it is also about emerging markets, taking issue with rich nations within the g20. they say they are not getting

the help needed for their renewables for their transition to clean energy. remember that the rich nations committed $100 billion to help them with that transition. so far we have not seen any help, any money. here we are on the eve of that summit for the leaders of the g20 with the possibility of not having a leaders communicate. if that happens, that would be the first time in the history of the g20 spanning about 15 years. lots of disagreements to be worked out. unlikely to be resolved. so big issues on the table, big disagreements as well. vonnie: president biden is going. he said he was disappointed president xi would not be there. but what would the u.s. view as a success at this g20? haslinda: this could be an opportunity for the u.s., for president biden -- remember, the u.s. has already been up in arms

about the money, the funds, the loans china has distributed to countries in asia and latin america saying those loans come with strings attached. this is a great opportunity for the u.s. to win the hearts and minds of those countries. coming into this g20 we heard from jake sullivan, the u.s. national security advisor, who said that there is a value proposition by the u.s. at this particular g20. by that, a lot of people take to mean that the u.s. is coming here with a proposal for emerging economies. there could be additional capital added to the likes of the world bank to disperse, infrastructure funding needed by a lot of emerging-market. we are awaiting details for those value propositions as explained by the u.s. there is also a great opportunity for the european nations. we know that in the sidelines of this g20, the leaders of the eu

will be meeting with african nations to perhaps explore how they can play a part in the infrastructure funding, infrastructure building development in the african continent. lots of opportunities to be held given the absence of xi jinping as well as vladimir putin at this particular meeting. haidi: modi and biden are expected to meet tonight. how does the absence of china impact that? haslinda: president biden is expected to touch here in delhi at about 7:00 p.m. and is likely to meet with prime minister modi right after that. both leaders of course meeting barely 2.5 months since the trip modi made to washington, d.c., which was a highly successful trip where they managed to worko -- work out at least a dozen

trade problems with them. but there are still many issues between them. modi wants greater presence of the u.s. in the indian ocean. we know the u.s. has been committed to the pacific, but not quite the indian ocean, and that is what modi is pressing for because that is where the strategic issues are for india. in the u.s. wants greater commitment from india to perhaps pull back in its relationship with russia, try to push back on russia's involvement in the ukraine war. remember that india continues to buy cheap oil from russia. yes, we have seen improvement in relations, but there could be further improvement as well. haidi: haslinda amin joining us live from new delhi and our discussions on the g20 summit continue. the former u.s. ambassador to china max baucus will be joining us, and later we will get insights from a professor of finance at the university of new south wales.

talks between chevron and labor unions in australia are set to continue friday. workers are ready for two weeks of rolling strikes beginning next week if a deal is not reached. what is the latest when it comes to these talks? is it a managing down of expectations at this point? amy: it could well be. the talks kept going last time perth time until 10:00 p.m.. talks began again this morning but now there is a fresh deadline of 1:00 p.m. perth time. they are a couple hours behind east coast here in australia. but it does still seem the two sides are some ways apart. these negotiations have been going on for weeks already. so once they reach that 1:00 p.m. deadline today it looks as though a strike action will be going ahead. the plan being intermittent action before proper strikes begin later this month as the campaign by the author alliance

continues. i heard a message a short time ago from the offshore alliance. it is one of combat. they say it is going on chevron. it still says the two sides cannot resolve those workplace issues. the two plants are the subject of those strikes, responsible for about 70% of the global lng supply. vonnie: it looked like we were getting a reprieve because they put off initial action for a day and then another day but now that does not look so likely. so what happens next? amy: that 1:00 p.m. deadline, it is fast approaching. what the plan is at this stage is they will be 24 hours stoppages from september 14 for a couple of weeks. but then who knows. they could have partial strikes, maybe they could work something

out. initially there's expected to be demand in asia and europe for lng from australia, but beyond that there could be some real issues for the markets there. so i imagine these talks are going to continue, but the offshore alliance which is representing the workers, it's really using combative terms. and it does seem like the two parties are still quite far apart, which means of course there will be some partial action later today, australia time. the full strikes are plan from september 14 onwards. vonnie: partial action less than seven hours from now. that was amy bainbridge speaking to us from melbourne. coming up, our exclusive interview with -- here his bold prediction for the yen later this hour. first, globalt investments

expect inflation to remain sticky and rates higher for longer. more on their market outlook next. this is bloomberg. ♪ fabulous surroundings... but everyone's looking at their phones for financial insights from merrill. is he hailing a ride to the concert hall? no. he's making sure his portfolio and retirement plans work in harmony. they want to adopt a child and build a new home. so they're talking numbers with their merrill adviser. 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. the morgan stanley client experience? listening more than talking, and a personalized plan ♪ to guide you through a changing world. ♪ that first time you take a step back.

i made that. with your very own online store. i sold that. and you can manage it all in one place. i built this. and it was easy, with a partner that puts you first. godaddy. how can you sleep on such a firm setting? gab, mine is almost the same as yours. with a partner that puts you first. almost is just another word for not as good as mine. save 50% on the sleep number limited edition smart bed. plus, free home delivery when you add an adjustable base. shop now only at sleep number. is it possible to fall in love with your home... ...before you even step inside? ♪ discover the magnolia home james hardie collection. available now in siding colors, styles and textures. curated by joanna gaines.

>> right now i think things are moving in the right direction. we have policy in a good place, but we are going to need to continue to be data-dependent. watch the developments and assess what we need to do. vonnie: new york fed president john williams speaking exclusively to bloomberg. let's bring in our next guest, keith buchanan, portfolio manager at globalt investments. i know you are anticipating rates will stay higher for longer. just curious as to how long you expect rates to stay high for, particularly given what we just heard from john williams there. keith: thank you for having me. our work has led us to think the

labor markets, the consumer resilience, as well as oil moving back to $80 on crude, wti, the environment is percolating some small green shoots of resurgence in inflation in a way we feel will keep policymakers across the world a little more uncomfortable perhaps than we have been anticipating over the past few months. the fed futures market is pricing in four or five cuts next year. we have long held an opinion, we think it is still premature now, considering how sticky this inflation seems to be. we have gotten it down to 3.5%, 4% consistently. 2% might prove to be more tenuous for us. vonnie: we obviously started to see a bit of a selloff. is that just a september selloff or is it something to do with

higher for longer? keith: we felt like as data points have come in where the labor market still seems to be very tight, we look at the labor market as kind of the door less opened for the fed. the hikes and the increasingly hawkish rhetoric can only remain as long as one door remains open and that is labor market. today's initial jobs claims show the labor market is not really coming loose or as we thought it possibly could coming into this year. because of the tightness of the labor market, gives more leeway for referrals to be a lot more aggressive and also to surprise the market on the hawkish side in order to get economic conditions to tighten in a way they feel like will choke off inflation in the near term. we feel like the opportunity for the federal reserve to remain increasingly hawkish to push out the dovish anticipations of the

market cuts next year is still on the table. haidi: do you think cash is a better place to be than bonds at the moment? keith: cash is not lowering. we have had a substantial weight in cash here recently. we see the opportunity for the shorter-term, the shorter part of the yield curve to continue to throw off yields that are attractive across any asset class. the long end is also becoming more of an inflation gauge over the 10 year. the next two business cycles or so. that is where we have seen the 10 year move to where it is now north of 420. that is from an equity return standpoint. it offers the opportunity for investors that can invest in fixed income to take advantage of those higher yield in this environment to it has broadened at the expense of the allure of

equities and we appreciate how wide the spectrum is of investable asset classes. haidi: what do you find -- where you find compelling opportunities given how stretched valuations look in developed markets? keith: we have long bring -- been proponents of large-cap domestic growth oriented. very recently we have taken some profits off the table on the girls side. we thought the market was anticipating rates would be reduced far sooner than we thought was the natural course of the market. because of that was sold off some of our growth in cash. we are anticipating the developments over the next six months to dictate our next steps. inflation in the labor market is coming together to have the environment where we are comfortable owning a little less although we are still overweight. we want to make sure we are putin about that overweight

going into the fourth quarter of this year. in particular as earnings season picks up and we had a resurgence of earnings expectation we think good boost equities going forward. in the meantime it is all about the fed and inflation and when those two worlds collide, that will dictate where the market goes. we want to be very careful about where our profits have been residing and that is large capital. vonnie: on commercial real estate, how bad could it be, and is it geographically going to be important? keith: it's absolutely will be important and geographics will play a large role in just how quickly deterioration can occur. a big part of our thesis is we feel like the market has underappreciated the impact of a prolonged and deep recession in the camilla -- commercial real

estate market going forward. we have seen some of that stock bubble up in specific geographic areas, particularly those who have not had the return of work as vibrant as other places, particularly in more urban areas along the coast. that is where you are seeing the first hints of turmoil when it comes to the refinancing that has to occur, particularly as rates have moved up in the past two weeks because of a more prominent refinancing issue in those timelines are not being pushed out any further. there is a great article that made the rounds yesterday highlighting this and we are going to be very cognizant of making sure our clients steer clear of holdings and assets and exchange rate funds that have that exposure. haidi: really great to chat with you. keith buchanan there. you can get a roundup of the stories you need to know to get

your story -- your day going on today's edition of daybreak. you can customize your settings so you just get the industries and assets that matter to you. this is bloomberg. ♪

vonnie: let's get you the latest corporate stories we are tracking. former ftx executive has pleaded guilty to criminal charges stemming from the collapse of the crypto currency exchange. he admitted to one campaign-finance violation and one charge of operating an illegal money transmitting business. he also agreed to surrender $1.55 billion in assets. he was the co-chief executive of the ftx bahamas subsidiary before they imploded last november. disney has narrowed its federal lawsuit against florida governor ron desantis and his political

allies. the lawsuit now focuses only on the first amendment claim the company was subject to retaliation for criticizing the republican's policies. the company dropped claims to santos and his allies reached -- breached disney's -- and violated due process. coming up, chinese president xi jinping will be noticeably and -- absent at g20 as other world leaders prepare to make their way to new delhi. former u.s. ambassador joins us next. this is bloomberg. ♪ so... i know you and george were struggling with the possibility of having to move. how's that going? we found a way to make bathing safer with a kohler walk-in bath. a kohler walk-in bath provides a secure, spa-like bathing experience in the comfort of your own home. a kohler walk-in bath has one of the lowest step-ins of any walk-in bath for easy entry and exit. it features textured surfaces, convenient handrails for more stability, and a wide door for easier mobility.

kohler® walk-in baths include two hydrotherapies— whirlpool jets and our patented bubblemassage™ to help soothe sore muscles in your feet, legs, and back. a kohler-certified installer will install everything quickly and conveniently in as little as a day. they made us feel completely comfortable in our home. and, yes, it's affordable. i wish we would have looked into it sooner. think i might look into one myself. stay in the home and life you've built for years to come. call... to receive $1,000 off your kohler® walk-in bath. and take advantage of our low monthly payment financing.

haidi: canadian prime minister justin trudeau told bloomberg he sees no room right now for political reconciliation with china. he also says relations have stabilized and he will continue to seek ways to engage with the

economic our house. he spoke to us exclusively in singapore. >> obviously we have had a challenging few years, as many people have. the arbitrary detention of two canadians for political reasons. it put a real chill on the relationship. but china is one of the most important economies in the world and is not a country anyone can simply anoint. we have to be eyes wide open as we engage, we have to look for where we are going to compete, where we are going to be clear and contest based on our values and principles that canadians expect us to adhere to. but we also need to look their we actually can cooperate and work together. one of the examples of that happened just last december where montreal hosted the chinese cop 15 on biodiversity.

so canada and china worked together to make sure that we came out of that cop15 on nature with incredibly ambitious targets of protecting 30% of the oceans and land on the planet by 2030. now, that required us to work together constructively, and on issues like climate we are going to have to make sure we work together. >> would you say the relationship is improving, stable, or deteriorating? >> i would say it is probably stable. there is certainly lots of room for improvement. it is not deteriorating right now but it is -- it has not gotten as much better as perhaps we would have liked to after the michael situation was resolved. partially because there are real concerns around foreign interference we are dealing with. haidi: justin trudeau speaking exclusively to bloomberg there in singapore.

well, final preparations are underway in new delhi as india gets ready to host this weekends g20 summit. president biden is already on his way but china's xi jinping and russia's vladimir putin will be no-shows. joining us now is former u.s. ambassador to china max baucus. always great to have you with us and we appreciate your time. the absence of xi jinping, and i understand there will be high ranking officials to replace him in his absence -- how meaningful is this at a time where we have really seen india struggled to gain traction in terms of finding common ground among the g20? and a lot of those interconnections do go back to china. max: frankly, i think president xi skipped the g20 for several reasons. number one, he does not want to have to defend putin. he has a very complex relationship with putin and i think he does not want to have to defend putin.

putin will not be there and it will be up to xi to defend him and he did not want that. second, he is a little concerned g20 is in india. it raises modi's profile. xi is not well about that. add to that, china's economy is in a weakened position. so it's unfortunate he is not there. the bigger danger frankly is there will be various blocs that will develop. president biden, western countries one. china and some of the south countries another. president modi himself then. and don't forget the middle east countries. the southeast countries are rising. the big danger is there will not be much of an agreement because each of the power blocs will be looking to more increase its position in the world. vonnie: this also comes at a

time where xi jinping is facing a multitude of challenges at home. how much does that play into it? and at the same time, how much is it even more significant for him to push forward with this global statesman persona that he certainly adopted at the start of his latest term? max: i think the economy has undermined quite a bit of that. he was to be perceived as a world statesman. for example in trying to broker peace with the war in ukraine. that transparently is not very likely. he is also trying to broker a deal with iran, that is also transparent. at least he is trying to show to the south countries, not so much of the western, but that he is a world power. president xi jinping wants to be the leader of the south countries. there is no question about it. but he is damaged recently because of economic problems that have risen in china, partly

due to covid, but partly due to restrictions and sanctions the u.s. has placed on high-tech companies in china. haidi: ambassador, we heard from justin trudeau speaking to us in singapore. there is a sense of stabilization. i suppose that lends itself to a grown-up rivalry with guard rails with the u.s. is this the best we can hope for? do you see further positive developments with that u.s.-china relationship? max: well, we certainly hope so. in life, we try to do our best with what we have and look for better results. but if one is a realist about all of this, i think the best we can do as prime minister trudeau said is maintain the status quo. the hope is neither china nor the united states does anything stupid that undermines the relationship even further. and something stupid would be public comments by one country

or the other, president biden or xi criticizing the other, or major actions that are adverse to the other country's position. i just think we have to stabilize. it is going to take a little while here, but the united states and china are going to have to reach some kind of accommodation in a year or two or three. that is when each realizes china is not going to go away. china always be here on this planet. the u.s. is not going away. it is kind of like an arranged marriage. it is not based on love, we don't love each other, but we have to learn to accommodate each other. i hope we can begin. vonnie: the rhetoric from president biden is always positive. he said he was disappointed president she not be there but he woul -- as all this tension over the chips business and china seemingly retaliating and,

according to reports, banning the use of iphones at government places. some of it is petty and some of it is not so petty. where does it end up? max: well, we can only do our best. let's hope that even though there has been bouncing back and forth, ministers going to each country, although it is unfortunate china has not sent more high-ranking officials to the u.s. but at least we are talking to each other. and the meetings are not acrimonious. the downside is that is just words. there is not much action. that is due to domestic politics in both countries. domestic politics in the united states really drives domestic policy. no one in the u.s. is fearing xi will not get reelected. that tends to embolden the hawks in china. the hawks are stronger more the

u.s. takes actions to her china. xi jinping wants to be leader forever and to be leader who has to keep people happy and that means he has to listen to the hawks. and to keep the average chinese person happy by hoping that their incomes are going to rise. vonnie: that would suggest this chip war will continue and get worst. i don't see how there is any good outcome if everybody becomes very national about what chips they are using. max: that is a good point. my gut is the chip war is going to slightly accelerate. my next show that might drop, huawei is coming out with counterfeit chips that violate u.s. sanctions and whatnot, that will not help matters any. i do have concern that high-tech matters like chips, quantum, ai, you name it, it's going to be

very difficult. in some sense i think it is accurate. many in the u.s. do want to stop, or at least slow down china's rise, and that very much upsets the chinese. i talked to many chinese and i ask, do you think the united states is trying to stop china's rise? oh my gosh, i get a chorus, what you think we are, stupid? of course they are. basically, we have to, as americans, shall we are not trying to stop china's rise. but in the meantime china has to show to the u.s. and the world it does not want to be the world hegemony. it does not want to control asia. it just wants to be a major economic our that can work with other countries in the world. haidi: it is also very useful for the chinese leadership to continue perpetrating the idea the u.s. is trying to contain the rise of china. but i am wondering if the baseline we are talking about is ongoing strategic competition,

what are the risks you see if we do see another trump presidency? max: well, that would be very dangerous, frankly. let's take a not so small part of that question. taiwanese leadership is apoplectic at the possibility of trump being reelected because they think trump will just cut off taiwan, and that will cause loss of world repercussions. i think a trump presidency would be disastrous to the world. i very much hope that that does not happen. vonnie: max baucus, thank you so much for joining us today. with climate change among the key items on the g20 agenda, the spotlight is on the host's efforts to reduce carbon emissions. india is reaching that shaming to reach a net zero by the middle of the century, even as it tries to meet the energy demands of its rapidly growing economy.

we take a closer look at the challenges. >> from electrifying public transport, the rooftops, too small urban solar parks like this one, to the world's largest solar farm, biogas, hydrogen, it 's throwing everything it has got at its energy problem. demand and supply. india consumes less than one third the energy in american does on average, but there are 1.4 billion indians, making it the world's third-largest energy consumer. rising incomes, industrialization, and urbanization also mean rapidly rising energy demand. supplied mostly by hydrocarbons. coal powers 70% of india's electricity. the company has the second largest reserve in the world. petroleum powers transport.

over 80% of the crude oil is imported. which is why india is aggressively pushing public and private investments across green energy. using local production incentives and import tariff barriers. the progress has been encouraging. by 2030, almost half of india's power generation capacity will be solar, wind, and hydro. electric sales tripled last year, although they are a fraction of overall sales. and green hydrogen has drawn multibillion dollar from leading conglomerates. but there's still batteries, shortage, -- storage, so much ado. last year india spent $16 billion on green energy technologies. it needs at least 10 times that investment every year to 2030 to get on track with net zero.

india needs to get this energy transition right. it would not be an exaggeration to say the future of the planet depends on it. vonnie: let's get the latest stories now in geopolitics. closing statements from the asean meetings in jakarta highlighted divisions over the war in ukraine. the 18 nation east asia summit includes the u.s., china, and russia, omitted any mention of the conflict. but the chair, indonesia, expressed deep concern over the war, saying most members condemn the aggression against ukraine. their president also urged leaders to strengthen cooperation. the u.s. and eu are said to be working on a deal that would introduce new tariffs on excess steel production from check -- the levees would primarily target imports from china that benefit from nonmarket practices. the scope of the measures are still under discussion, including other countries that could be targeted, and the level

of tariffs. haidi: another story we are tracking, hong kong facing the prospect of another day of disruptions caused by intense rain. the government has already suspended schools and called employers to give priority to staff safety. it is one extreme weather conditions will last them to police noon, caused by the remnants of a typhoon. the observatory has raised the highest lack rain storm warning with reince the highest on record since 1884. the city was shut down friday last week due to the super typhoon. much more to come here on daybreak australia. this is bloomberg. ♪

vonnie: you are watching daybreak australian. asia stocks set a subdued start after traders shunned risk. let's discuss the outlook and bring in annabelle for morning calls. obviously tech stocks will be a particular focus. annabelle: that's right. given what we saw on the wall street session, it was still that day two reaction to the store that china could ban government officials and others that state owned businesses from using iphones. that has had big ramifications across the tech space. apple down about 2.5% over the

last couple sessions. $190 billion in value wiped out for the company. breaching the key 100 day moving average, so that's interpreted as a bearish signal by some technical strategists. company suppliers, qualcomm really got hit, down more than 7%. nvidia as well also feeling the brunt of this. in terms of how traders are reacting, it is a little mixed on what we are hearing from different analysts. evercore isi is one that says apple is unlikely to face any material financial impact and that is because already beijing had been discouraging certain people within the state service to avoid using its products, the apple products. and it would be difficult for beijing to take a more substantial action against apple well affecting jobs in the country. that has been a big issue there. unemployment figures, given that is where most iphones are assembled. another says the beijing

crackdown on apple poses some spillover risks even that apple's growth story is heavily reliant on china. it takes about 20% of its revenue from the greater china region. if that crackdown does intensify, analysts say it could pose further spillover risks. vonnie: traders are also closely watching rates. annabelle: particularly after we had the jobless numbers overnight enforcing the case for the fed to keep rates higher for longer. but this is a really busy day ahead, or has been a busy day for fed speakers. saying we are rapidly approaching the time when the argument will not be about how high rates should go. bostic reiterating his views that the economy is slowing and signaling the rate hiking campaign should be given time to work given it does operate monetary tightening policy on a lag. williams is when we heard from exclusively a bloomberg. he said policy is in a good place but we must be

data-dependent. so he says officials will really need to parse through the data. take a listen. >> we will have to keep watching the data and carefully analyzing all of that and really asking ourselves the question, is this sufficiently restrictive? do we need to maybe raise rates again to make sure that we are keeping that steady progress in terms of getting the balances, shrinking balances in the labor market and bringing inflation back down? annabelle: so yeah, a lot of fed speak on tap and it has been reinforcing that case. the moves in the dollar, that king dollar narrative is having such a big bearing on other asian effects. haidi: such a massive story. how does 170 to the dollar sound? that made me do a double take. that is what we are hearing from san torre saying the yen could weaken to 170 to the dollar.

he says higher rates may still be years away. he told us how the company's beverage business is adapting to changing consumer tastes. >> we are capable of investing to another potential area to look at a younger generation. there is a strong and potential need that they want to drink less alcoholic beverages. so the soft drink division and spirit division work together to take on the challenge of that space of ready to drink. that would be the first case and definitely that first case should be hugely successful. so we are positioned very uniquely against our competitors. so we believe our market has a

huge potential to attract more consumers. we want to be number one in the world. >> you are expanding abroad, the yen is weakening further, japanese government is also closely watching the situation. how far do you think the yen may weaken, and how long you think it will last? do you think the yield curve controlled by the bank of japan needs to be amended further? and if so, to what extent? >> i think the boj's management wants to change entire monetary policy with a positive interest rate as soon as possible. but i think they need to understand the possible turmoil in the japanese economy, such as small enterprises, medium-sized

enterprises, they will get the hark. so the government has to make a decision that the government will help people but not corporations. i would assume that the japanese yen might hit around 170. not 150, worse. so, how we can resolve? trade-offs with many regions. but the key thing is the economy should be driven by the private sector. the economy has been relying on state finance from the central government. we have to move towards an economy supported by the private sector.

vonnie: more next. this is bloomberg. ♪ ♪ explore endless design possibilities. to find your personal ♪ style. endless hardie® siding colors. textures and styles. it's possible. with james hardie™.

haidi: take a look at the fx setting as we get into this friday. what a week it has been for the u.s. dollar and we are not done yet with this dollar dominance as we head for the longest

winning stretch we have seen in years. this is the longest on record since at least 2005, when the record-keeping began. the bloomberg dollar index also eyeing march highs. taking a look at the currency pares, not much of a move when it comes to kiwi dollar or the aussie trading against the dollar. we're at -- going to be very reliant on out of china. offshore yuan dropping to a 16 year low. -- watching for more in terms of intervention measures from china and japan. this is bloomberg. ♪

haidi: you're watching daybreak asia coming to you live.