annabelle: he talked to cnbc.00 six in particular because he is saying that was a period in which the fed stopped raising rates and we continued to see equities raise for a further year. he is saying that essentially that is why we can expect stocks to rise for it he says the fed is done raising rates, inflation has been quelled. he says even if we do see recession, which he does see for the third or fourth quarter, we can expect gains to extend for equities. haidi: annabelle with a look at the radius -- a look at the latest. distance is starting to feel the crunch tried to policy. he told us policymakers are making headway in the fight against inflation. >> when i think about the trajectory of inflation, i think we made really good progress on it. you think about where the economy was and where inflation was last summer compared to today, we have seen really positive things happen. we are not denying at 10 percent levels, we are in the 4.5% range. that is still two times what our target is. there is still a ways

annabelle: i am annabelle droulers in hong kong. we are counting down to asia's major market opens.hery: good evening from bloomberg's world headquarters in new york, i am shery ahn. the top stories this hour. turkey may face a runoff election as red zip tie up erdogan's share votes in national elections falls below the 50% level needed to win. haidi: pro-democracy groups much a victory, putting up the biggest challenge to the establishment since the military seized power more than a decade ago. shery: and this u.s.-made know looks to cement its position as the world's biggest gold producer. u.s. futures under pressure in the asian open after a week of losses for the s&p 500. we had concerns about the debt ceiling, not to mention more-hawkish fed comments. perhaps justified given the university of michigan survey showing inflation expectations still exceeded the forecasts when it comes to the outlook for the one year and longer-term as well. not surprisingly had treasury yields rally in and the 10-year yield headed towards a 3.5 level. the fed because that market had expected up unt

annabelle: i am annabelle droulers in hong kong. we are counting down to asia's major market opens.hery: good evening from bloomberg's world headquarters in new york, i am shery ahn. the top stories this hour. the white house and congressional leaders are optimistic and getting a debt deal done within days, even as both sides say there is still a lot of work to do. president biden scraps plans to visit australia. haidi: the deadlock spurs a late-day slide in u.s. stocks. 30-year yield claims to the highest since the banking tuoil erupted amid pfizer's jumble that's all. shery: and whether rates are high enough for a pause in june, or if they still need to hike more. take a look at how u.s. futures are in the asian session, a bit of upside. this, after stocks fell in the new york session ahead of that feeling negotiations and the results of where that went. -- debt ceiling negotiations and the results of where that went. consumers still buying despite inflation and high borrowing costs. you are looking at the 30-year yield. it just hit the highest since the banking turmoil in march.

annabelle: that's right.y put out a new know, looking out what's next, given we saw the topics, the nikkei, both hitting multi-decade highs. the big question that investors have is whether these gains can be sustained. muzuho around the bank of america says it is possible if we do see japanese corporate earnings continue to improve. what they are also looking at is the underlying economic fundamentals and they say they are improving. we are tracking that across of range -- across a range of metrics. inflows from overseas investors and that's because typically they interest in futures to begin with and turn to cash equities with a multi-month lag. that's a change now. they've actually raised their end of 2020 three targets for japanese stocks, taking a look at the big run-up we are seeing over the course of the year. particularly in the nikkei with a 20% gain. eyeing a bull market. but their year end targets they are looking at 30 to 500s of the nikkei two. they are also 2300 for the topics -- topix. paul: you

this is bloomberg. ♪ annabelle: this is daybreak asia.n markets 30 minutes out from the opens in japan, korea and australia. so far we are looking for a mixed open. a lot of markets are coming back online following a public holiday on monday or tuesday rather. the watching bond yields in the front end of the curve in particular, given the moves in treasuries, a few different reasons being cited, one is heavy corporate issuance. seeing yields rising. in terms of what else we are watching, a lot of that coming down to what we can expect out of china. we see futures pointing to a weaker start. if you change over now, what is driving that is expectations or the reaction to will be get from the labor day holiday figures. you can see it sales growth across the board. really the first chance that a lot of people in china are having to take trips and travel for the first time since the pandemic. really strong numbers, but the debate amongst investors is whether these gains can be sustained. wage growth is weak in the country and unemployment is h

paul: thank you, annabelle.urkish president are to want secured another five years in power winning just over 50% of sunday's runoff vote. it raises the prospect of more friction with western governments and more uncertainty for investors. let's get the latest with bloomberg's turkey bureau chief. onur ant. give us the scale of the economic turmoil he is facing and what he needs to do to turn things around. economic turmoil was there before the election. that's one of the reasons why a lot of people including international investors expected a possible -- opposition win. that's why after the first round when everyone came on top we saw a lot of pain in international financial markets as traders tried to weigh the possible discontinuation of erewhon -- president erewhon's unorthodox policies. after he won the election he gave a victory speech and said his top priority was inflation which he knows is still taking a toll on turkish people. he promised to courbet. he said he did before and do it again. what was real

let's stick with the outlook for rates and bring in annabelle.ays the fed would have a ways to go. annabelle: that is what we have been hearing from the ceo who has been speaking at a conference. the big take away from his speech are the views he shared around the help of the u.s. economy, because he says it could manage to avoid a recession even if it does see a contraction. it is likely to be modest. the flip of that is he also sees as pressure staying elevated for some time. cpi in the range of 4% to 5% because of the lingering effects of the u.s. government stimulus program, he also shared when he sees is this having an effect on the fed. >> i think inflation is too strong, too sticky, and the fed is not finished. i think they have 2 to 4 more tightenings,, will be close to 225 or one more 75. shery: australia's central bank may not be done with hikes either. annabelle: if you take them latest property data that came through as a guide here, this chart showing the numbers from court logic -- core logic, and what we saw in the month of may it

annabelle: hold onto cash or by gold.trimmed its equity allocation. that is because they say there is a poor risk reward ratio. it says there is a disconnect between equity markets and bonds. and of the risk coming through from the debt ceiling talks. this is the team led by one of the biggest bulls on wall street in 2022. he has changed his tune. he is picking up on how equity investors are interpreting no potential cuts we could get from the fed, which has been seen by some as a positive for riskier assets. he says even if we do see the fed cutting, it would be in reaction to a risk of event. there is a policy that we could see the fed pausing for some time. that would be something else that weighs on equity markets. in terms of the recommendations, further reducing equity allocation, rotating commodity portfolio from energy into gold as a safe haven, and recommending holding onto cash for longer. haidi: goldman-s is watching the direction of the u.s. dollar. annabelle: they have been keeping an eye on what we have been

annabelle: we are counting down to asia's major market opens. shery: the top stories this hour -- u.s. cpi data set to give clues on the fed's next move -- fresh fears over a credit crunch spring bond traders to bet on the biggest policy shift in almost four decades. haidi: show you may be set to record its first budget surplus in 15 years. shery: the leaders of japan and south korea strike a tone of unity in a rare summit, there first and about 12 years. u.s. futures at the opening of the asian session not doing much, fluctuating between gains and losses after that rally in risk assets we saw on friday and rebounding from the route and regional lenders in the u.s., not to mention a solid jobs data report really calming investor fears a recession is just around the corner. we were watching the tech space as we had apple earnings boosting the sector and we were watching treasuries falling across the board. the 10 year yield rebounding along with the two year yield, this given the strong jobs numbers, perhaps the fed will stay higher for longer an

annabelle: this is one of the most read stories on the terminal.ally, cathay woods flagship, dumped all of their holdings and closed out the position in nvidia at the end of january. you can imagine how the team is feeling on missing out on the rally. this has been a $560 billion. the stock has surged more than 50%. this circle in red pointing out that was when they closed out their position around the end of january. since then you have seen the moves. nvidia is spiking, that has been the performance of the flagship etf. a lot of different views coming in on this, it is not all bad news, that is what our bloomberg intelligence team has highlighted, given if you take a look at what we heard, essentially cathie was into the stock, as our team said, before it was cool. they have made a lot of money out of the company so far. it's just that they essentially missed out on this most recent rally. haidi: intel is another name missing the retail -- ai rally. annabelle: this chart looks at the big moves we had in the philadelphia semiconductor index on thu

annabelle is watching. annabelle: that's right. it is friday.just saying about sovereign debt, that he would buy it at all, this is interesting when you put it in the context of what we have been seeing. we have been really tracking this light in the 10 year yield, on track for a 10 week side. we are around that 2.7%. we are nearing the of technical support the downside is remaining in tech we are talking about why that is happening. we did get that report that china is asking its state banks to reduce lending rates in order to try and spur some economic growth. you also have investors who think there could be further policy support on the way. we didn't have perhaps another signal that could need to happen coming through in the financing data because we have the aggregate financing as well as new loan issuance coming in well short of estimates for the month of april. that is another signal to us that the economic recovery is looking increasingly uneven in mainland china. broadly in the session, we are expecting a retreat in some markets, alread

annabelle: still continuing to play out as well. so revenue up 11%. that was driven by healthy gains and also the fintech space. at the end of last year, this is when china started to end the long-standing freeze they had on mobile and tencent profited from that quarter. one of its biggest gaming titles had new highs for gross receipts . these are the positives for tencent in their latest earnings. you mentioned the earnings miss and that was driven partly down to weakness in ad sales which missed forecasts. that was the topic raised on the earnings call. tencent says broadly the sector is in recovery. it did growth online ad business by 17% but as you say, it is uneven. verticals like fast-moving consumer goods, e-commerce is seeing a rebound. wechat with the latest -- pig contributor and that took in half of the ad revenue overall. shery: how is it planning to spur growth in this environment? annabelle: it comes down to a artificial intelligence partially. this was a key topic in the call. tencent says it's planning to expand or integrate the text c

annabelle, what are you seeing at this hour? >> reporter: hi, raj.me tell you that it's pretty quiet at this hour. when the clock struck 9, a lot of us were out here, expecting or wondering what was going to happen. and i have to say it remained pretty calm there was no chaos out here. all we heard were the volunteers handing out food, trying to get some, you know, organizational -- some type of -- they were trying to organize a lot of the migrants that are in what's known as no-man's-land. really, we've seen a lot more activity as far as a number of migrants that are behind these bars that you see behind me. there is a primary fence and there is a secondary fence. and in between, you see a lot more migrants. i have to say, we've been here for several day, and we see about maybe four times as much migrants here today than we have seen on monday. we've seen a lot more police activity, homeland security was here. border patrol has been driving around this area. because nobody really knew what was going to happen once the clock struck 9:00 p.m. so as of

annabelle is here now with a look at markets. annabelle: looking ahead to the open in asia.head of that, the start of trading for the u.s. market. shut on monday for memorial day, thin trading. cautious optimism coming through with the debt deal relief, the main center point. u.s. dollar as well, retreating somewhat. it was the asset investors were turning to amidst uncertainty. it was lower on friday ahead of the deal being announced. nasdaq futures a particular watch for us. one of the key questions is whether the ai frenzy can continue. there was fuel added to the fire on monday in taiwan because we heard from nvidia ceo jensen wong outlining his vision for the company. nasdaq futures to the upside. change over now, that helped japanese stocks in a prior session. topics rising 2% at one point. when you look at the board today it is more -- cautious optimism in the u.s. but cautious overall in asia. seeing the japanese yen above 140, something that could help more of those export names in japan. in terms of what else we are watching, china is the big market to watch given

annabelle: we are watching the lenders at the start of trading. profits but resisting buying back shares and some investors the market liking the degree of prudence given banks are big holders in japan of u.s. tragedies so -- treasuries but let's change on because we are watching another company and there is reports of the share sale but the company had already slumped and if it goes through the share so it could be a 30% dilution and that it's a big negative because share price had been looking to stabilize above the level on cuts so it indicates it's a chance they are likely -- looking to sell the minority stake. i sigh the japanese drugmaker we are watching how the stock came online and they say they are very confident of winning full approval from the u.s. for their alzheimer's drug and that would expand access to 10,000 patients across the u.s. and it's the first drug shown to slow the progress so investors clearly liking it. shery: alibaba says huge investments are coming for their shopping app as they try to bring more users onto the platfo

annabelle: i'll be watching this results from tencent closely. baidu and alibaba also do in the coming days. chinese equities have been under pressure with further signs of deterioration coming through for the local economy, and economists deciding to cut expectations for this year. broadly in the session, you can see we are setting up for failure. mixed trading, most o risk tilted to the downside. still waiting for more clarity on those u.s. debt ceiling talks and we will have details in a moment, but japan really standing out. we are seeing nikkei futures in chicago trading fairly flat. not the most liquid contract, but broadly, as we know, it is that optimism around japanese shares, yesterday closing at 33 year high, at a lot of economists saying this further room to run. some saying we could seed upside -- we could see upside a further 10%. we are treading on a price-to-book ratio of 1.2%. compare that to the s&p 500 at 1.4 percent. 1.8% for the euro stocks, and that tells you can still find pockets of opportunity, even if we are, as i said,

that's bring in annabel for more details from the results. beginning with its cloud arm, what do we know? annabelle: this is the key focus coming into the earnings call, how will they lay out its intentions to split into six different units. the first phase is splitting off the cloud business. it is a significant step, it has been one of alibaba's fastest-growing businesses. in the latest earnings, we saw the first ever cloud revenue drop. that can be a signal of how important it is to bring on new strategic investors to revive its growth. the company says that being a standalone business could one day pass alibaba in size. others are concerned it is at a disadvantage given that beijing is increasingly preferring for data to be stored on those types of servers instead. what is next? it will be the grocery chain, fresh hippo. it will be its logistics arm after that, which will be in 18 months. shows were down, investors were not impressed. annabelle: we saw a drop of 6% at one point. it doesn't bode well for when it comes online. there have be

annabelle joins us for morning calls with the details.h names like jp morgan being overly punished? >> that's the call from mike male at wells fargo. what this chart shows the p/e ratio for bank stocks. it is tumble, it's what the levels that it was at before the banking crisis. he says they said at these levels bank stocks in particular the names like jp morgan, citigroup, b of a, they are at entry-level points for investors. he is basing this off of a couple of factors. he says investors are pricing in is essentially the worst we have seen. the bigger names of picked up flaws from regional lenders that continue to be under pressure. he says easing levels of inflation or enough to justify higher bank valuations instead he is seeing other catalysts that could lead to a re-rating a bank stocks. among them a shift in fed policy that can lead to lower deposit rates. then you have lower term rates that could feel buybacks. then the so-called soft landing still holding out hope. >> any other valuation calls that have caught your attention? >>

annabelle: counting down to asia's major market opens.aul: asian stocks are facing pressure after wall street wipes out its monthly gains despite fed officials talking about a rate hike in june. talks on the debt ceiling deal have both parties confident that it will pass. china is the place to be with jamie dimon and elon musk there. shery: u.s. futures are not doing much as we await the house vote on the u.s. debt ceiling deal. we had the s&p 500 falling below the 4200 level in the new york trading session. we have u.s. job openings surging to more than 10 million giving rise to speculation that the fed may have more room to hike. until july. that is leading to concerns about economic pain so we had treasury yields down for another session. not to mention of course we were watching how traders were trying to digest the debt ceiling deal. at the same time, the dollar strengthened. the best month for may which led to pressure on crewed prices which are falling below $70 a barrel. the chinese pmi numbers did not help. annabelle: that's righ

shery: annabelle with central bank decisions to come in europe.s follows decisions already in developing nations like malaysia. hiking rates but a quarter-point. we just got brazil's central banks holding rates steady for the fixed-rate meeting. let's bring in bloomberg's reporter from brazil. we saw annual inflation falling significantly in brazil and yet the central bank did not necessarily came to political pressure and held rates steady. what are we expecting going forward? maria: that is very interesting. that is the reason central bankers themselves had to explain to lawmakers that both lasted several hours. as we are seeing from today's statements, the reason remains the same. basically it is about long-term inflation expectations. it is about core measures and targets. and their own expectations, the central bank's expectations for inflation for the years to come. we are seeing today the are still using words like there will persevere in the inflation battle, they will remain vigilant. there is a phrase that has been very much debated sayi

annabelle munoz from k abc is on the ground in san ysidro along california's border with what we areeeing tonight. reporter: for the last three years, tijuana is where an increasing number of refugees and asylum-seekers have been forced to wait as u.s. immigration policies largely halted access to asylum. thursday, title 42 immigration authorities to turn away people seeking asylum and it comes to an end. >> we are clear eyed about the challenges we are likely to face in the days and weeks ahead. they have the potential to be very difficult. our plan will deliver results but it will take time for those results to be fully realized. it's essential that we all take this into account. reporter: the biden administration is set to implement new measures. some will speed up the processing of people seeking asylum and deportations. among the announced measures, abstentions, individuals who cross into the u.s. without authorization will be assumed ineligible for asylum. if removed will face at least a five year bar. human rights groups are gearing up to legally challenge these measures and m

annabelle: we are counting down to asia's market opens. haidi: the top stories this hour. turkiye may be set for ever enough election as the president's share of votes in the presidential elections drops below the 50% level needed to win. in thailand, pro-democracy groups deutsche's resounding victory -- notche resounding victory. an agent shares face a sellout. shery: that is adding to the pressure in the u.s. markets, we are seeing u.s. futures under pressure early in the asian session after already a weekly loss for the s&p 500. data ceiling concerns, not to mention a hawkish fed. we had some more comments that pointed to a hawkishness from the federal reserve. perhaps justified given we saw the university of michigan survey pointing to the inflation outlook exceeding expectations. not only for the one year, but for the longer term as well. we had treasury yields rising across the board. the 2-year yield is headed around the 4% level. we also had pressure on oil prices. the asian session seeing a rebound. but we continue to see concerns about the broader economy. not to

spring in annabelle for more details of the earnings. the breakup -- this is what investors are looking for. more details of the split up. >> how the company was planning to split into six different business units. we got more details coming out in the earnings overnight. the first phase is going to be splitting off the cloud arm. choosing the start is significant because this has been one of alibaba's fastest-growing businesses. when you take a look at the latest earnings, the first ever cloud revenue drop. it came in at -2% revenue gains versus projections for 6%. you can see in the chart. it is a signal of how important it is to bring in new investors to try to revive the growth or the company also says in terms of its projections, for where the cloud unit can go to, they say it could rival alibaba. some concern about that vision given we are seeing beijing increasingly preferring for data to be stored on state backed servers. that is perhaps an issue that could arise in the years ahead. there is more business units to come. most imme

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annabelle munoz from k abc is on the ground in san ysidro along california's border with what we areg tonight. reporter: for the last three years, tijuana is where an increasing number of refugees and asylum-seekers have been forced to wait as u.s. immigration policies largely halted access to asylum. thursday, title 42 immigration authorities to turn away people seeking asylum and it comes to an end. >> we are clear eyed about the challenges we are likely to face in the days and weeks ahead. they have the potential to be very difficult. our plan will deliver results but it will take time for those results to be fully realized. it's essential that we all take this into account. reporter: the biden administration is set to implement new measures. some will speed up the processing of people seeking asylum and deportations. among the announced measures, abstentions, individuals who cross into the u.s. without authorization will be assumed ineligible for asylum. if removed will face at least a five year bar. human rights groups are gearing up to legally challenge these measures and monit

annabelle: we are looking ahead to a weaker start to the trading day in asia. did not have much of a lead in from the wall street session but the opens from japan, south korea and destroy our up on us, also the start of trading for cash treasuries. a lot of central banks in japan, the governor delivering remarks in tokyo, the first address he has given in english since taking over the mantle. also hearing from the former imf chief economist at that event as well. this as we watch those moves in the japanese yen, trading close to the 140 level for the currency against the greenback. we hear the country's top currency official warning they could take action if needed. in the session you can see the nikkei 225 under pressure at the start of trade. that is as we see the debt limit deal facing its final test in congress to avert a default. we will have the house rules committee meeting soon to decide whether that debt limit will get a full vote. we have two republicans opposing it, but i house passage on wednesday is critical to getting approval in the senate. we ar

annabelle: a couple of things we watching.ttle bit under pressure, now trading flat. that we are 11 minutes into the day's trading in tokyo. this stock in focus, because the abu dhabi sovereign wealth fund mubadala, and fortress investment group have agreed to purchase 90% of the equity that softbank held in the u.s. asset manager portrays. mubadala will take a 70% stake while fortress management will take the remainder. fortress will be continuing to operate as an independent investment manager after the deal closes. the exact terms and the size of the deal have not disclosed yet. softbank now trading flat. another stock we are watching today is qantas. we just got a trading update from the carrier. it's again under pressure, bucking the broader trade we are seeing for the asx 200. essentially the company is seeing strong travel demand, the completion of its cost-cutting program as well, will drive profit growth for this year and they are expecting full-year year underlying profit before tax to rise to 2.4 8 billion aussie do

annabelle: we are 90 minutes away from the open in seoul and sydney.ee a picture of caution, initial stocks are the ones who watch. -- the ones to watch. bitcoin was flat this morning, up 4% of the price. it has benefited from the issues around first republic and other lenders. we are watching the debt space, a focus given that drop we had in treasuries, down as much as 20 basis owing. not as much as the kiwi two-year yield at the start of trade. that could be complicated perhaps by the rba decision on tuesday. a big surprise to investors, economists had predicted the decision. the aussie dollar is sitting is morning, striving this are split on the 25 aces point make, if it has any ramifications for jay powell. some suggesting it is a big curve -- curveball. haidi: his book after policymakers presumed raising interest rates. >> we don't need to get inflation back to start target straightaway. nor can take to long. we are taking longer to get back to the inflation target, as the case in other countries, the name the decision to do that because we think

shery: annabelle there with the big china tech giant.let's get the su keenan with the first word headlines. >> chinese president xi jinping who will deepen beijing's influence in central asia at a major summit starting thursday. it will assemble leaders of kazakhstan, could you can stand, turkmenistan, and uzbekistan in the chinese city of xian. train ties, security concerns, and russia's war will dominate talks, this unfolds as the g7 leaders in japan this week. to india, where the prime minister is pushing through with his australian visit next week. despite the last-minute cancellation of the summit. is expected to hold bilateral talks with his australian counterpart anthony albanese and have meetings with the business community. his visit is seem to -- seen to eight australia's bid among growing tensions among australia and china. >> police have surrounded his house to potentially arrest him again. he has given a 24 deadline, given a 24 hour deadline to hand over supporters at his residence were accused of attacking military faciliti

annabelle: when it comes to the direction of u.s.cks, jp morgan has a note out and it makes for a dire reading. we could have more losses to come because the expectation from investors, jp morgan says we have hit the peak of pressures in the market and that is because recession risk is an event on the horizon. they see equities remaining or weakening for the remainder of the year. we are yet to see the full effects of the fed's tightening policy hitting markets. the factors that have supported growth like corporate margins are going to be starting to wane. take a look at the monthly performance of the s&p 500. you can see we had gains, that is march and april. in may, the direction has been lower. jp morgan saying that is likely to continue because the risks of recession are not priced into the market. there has been a low rotation so far on a historical basis into defensive pockets of the market. the reason for rate cuts, jp morgan says you've got to look at the reason we would see changes from the fed. that is because there's been

annabel deas, thank ou horrifying violence. annabel deas, thank you for— horrifying violence.s, this is _ gangs. i had some figures, i looked at this, this is not _ gangs. i had some figures, i looked at this, this is not to _ gangs. i had some figures, i looked at this, this is not to be _ gangs. i had some figures, i looked at this, this is not to be political- at this, this is not to be political but this is statistical. these are figures uncovered by the ymca, who knows what another party would have done, but figures uncovered by the ymca reveal the cuts to youth services funding by local authorities in england and wales, i suppose you could say it is pressure on local authorities, 629,000,02018 to 19 compared to 1.6 billion in 2010 to 2011, a real terms decline of 70%, 65, 70%, something like that. the ymca looked at it and discovered that figure, it was reporting to local authority expenditure on youth services. that is quite stark, that is what you are saying? it is quite stark, that is what you are sa int? , , is quite stark, that is what you are saint? , _. ~ is quite

annabelle goren -- annabelle: yeah.what we are tracking the boj wanting to hold onto policy flexibility so the question is what is the data without will convince it to change his policy settings and also the timing of when we do see some sort of shift? but as he said, that the concern for the boj is that the inflation reading for -- is being driven by the cost side of the equation so this year it really plays into it because we have inflation as spreading in the pan. this chart looking at the percentage of rising price items the line in white and it hit the highest level on record and what the boj once to see is really being driven by the demand side, and they have been focused on those wages that are certainly not keeping pace with rising prices. it is something we are tracking in the boj looking to stay steady at this point in time. if you change that now, that plays into the moves we are seeing in the dollar-yen trade because we have seen it since that hitting that 1-40 -- 100 40 level. we had the 25 basis point hypi

annabelle: counting down to asia's major market opens. the top stories this hour. the u.s. debt ceiling deadlock. talks remain at an impasse with no new meetings plane. uncertainty is seeing a wave in asian markets. the rbnz is excited to hike rates for a 12th straight meeting. the kiwi dollar and volatility surging ahead of the decision. >> one of the moves we are watching in asia, you can see futures are going for a weaker open with debt talks continuing to drag on. the impasse affecting the appetite for risk taking. futures are looking eager. kiwi stocks are online to the downside. we are tracking what is happening in the currency space. we did see the kiwi dollar early down as .6%, it was a haven appeal coming back into the u.s. dollar. the kiwi dollar is in focus, we do have the rbnz decision coming today. the expectation is we see the 12th hike from policy makers. we are positioning for a spike in volatility, 18%, the highest in the g10 space. i yield to the front end of the curve rising a little bit ahead of the meeting. let's take a look at one major market, the nik

annabelle joins us now from the morning cause.ing stress was a major theme, no surprise there. >> absolutely. this conference brought together a lot of high-profile investors in the industry, and the broader readthrough is that the worst of the stress has been contained, but that has not stopped a lot of speculation as to what could be the next on the default, and pain could be felt for owners from office building -- billings. you have this rise of remote work, and vacancies at a record high. that is also compounded by rising financing costs. this has been a theme of the events. here is what we heard from the apollo global management ceo. take a listen. >> part one of the crisis is over. we have a second wave in commercial real estate. a system that has government guarantees where there -- people's money is entrusted, losses create concern. it will be systemic, but not concentrated. regional banks are the primary lenders to many real estate issuers. >> what about the implications of the banking stress for the fed? >> this has been

and annabell: a check on markets here.into the session for seoul, sydney and tokyo. and so far today, you can see here on the board we are really just a picture of very much subdued trading in the session. equities trading at a narrow range and currencies holding fairly steady. the bloomberg dollar gauge as well is likewise flat. in terms of what we're seeing in bond yields, just some fractional moves higher, reflecting really what we had in treasuries overnight. but there's really a lot of reasons why investors are choosing to sit on the sidelines in the session today. firstly there's some general uncertainty as the u.s. debt ceiling talks have stalled. we are expecting both sides of congress to reconvene on friday and you can add to that what we're expecting from the u.s. inflation report that is due later wednesday. now, the headline is expected to come in at 5% year on year. that uncomfortably high for fed officials even though we are already seeing more they may go on pause at the next meeting. but if you change on no

haidi: annabell in hong kong.al making and a 10% jump in annual profit. net income rose to $5.2 billion topping the forecast from analysts that we surveyed. maquary a final dividend of $4.50 a share. and a.n.z. predominant met analyst expectations as margin pressure, a move to call back a larger share of the mortgage market. cash profit in line with estimates. and in an exclusive interview earlier, c.e.o. shane elliott warned of more difficult days ahead but not without opportunities. >> and our rollovers happened much earlier than the rest of the market. so we are through the worst of it. and what we found is those customers have been behaving better than ever in terms of their credit quality and so they're now moved on. and as we look at our competitors having to deal with it, that's an opportunity for us. haidi: alibaba's global online shopping unit is considering a u.s. listing. sources tell bloomberg the plan is still in its early stages and the i.p.o. size is yet to be determined. that unit includes lazada a

shery: annabelle with the latest on adani.up, we turned to takeda pharmaceutical, expecting a dip in earnings after reporting net increase. this is bloomberg. ♪ shery: takeda pharmaceutical reported profits that missed estimates. it flogged a decrease in the coming year with one of its key drugs facing competition. let's discuss with the president and ceo christophe weber. i know you had net profit surging almost 40% in the past fiscal year. but there are concerns on what happens next. what are your expectations, one can profit recover after taking this hit? >> in 2022 pleased with that. we reduced our debt level to where we are targeting. that's not a concern. therefore we can focus on growth . 2023 is difficult for us. there is a slowdown of growth. we are considering our grow -- growth outlook in the future. shery: one would you expect moffett's to make a comeback and rebound -- expect profits to make a comeback and rebound? >> after 2023. the slow down is linked to an exposure on two key products, that we watch, and we wil

annabelle: it certainly was a budget targeted at disadvantaged groups. some of the sectors including consumer discretionary, real estate dropped into the close on tuesday. in terms of set up for today, it's been driven by the macro factors particulate what's happening in the u.s. with the debt limit negotiations, debt ceiling negotiations then also this look ahead to the u.s. inflation numbers coming out later. it is set to hit 5% so still very elevated. off that, we have the asx 200 pointing to a mile dropped the open. kiwi stocks online and investors moving into the safer haven currencies. strength coming back into the dollar. investors retreating back into gold. yen also flat still holding around 135. shery: delving into some headlines that we need to follow, let's get the vonnie quinn. >> a new archery has held donald trump liable for sexually assaulting and defaming e. jean carroll. the court ordered him to pay $5 million in damages. she accused donald trump of raping her in the 1990's and defaming her by calling her a liar when she wrote about it.

forces go, and i saw farsi, the distance between the national roof , is going backwards, scary, annabelle, who says destroy it inside my anus , then they will do the work . let him go over the money of khan tuman 23 towards him 23rd street, above the stairs, tell him that the numbers will be adjusted towards you, then you will talk again, he is not aghajani , mr. mahmoud emphasized, this enemy was a siege , a siege, another mistake, mahmoud, i want josh, i and the enemy have given you me and my friend. i don't know, mahmoud khan, the enemy's opinion came up, mahmoud yasir, the enemy's line is close to the first danger, they are putting a lot of pressure on us , the game is becoming material. i'm surrounded, if you can go, i'll be your guardian from nasser, if you can't, forever goodbye to mr. mahmoud's voice, the mission has collapsed without you. the news is moment by moment that the gentleman who called told me that you should tell them that mr. mohammad reza was martyred. mr. mahmoud 5050. where are you ? so where are you? you don't know if you have me. askan phone rang and he is killi

annabelle: the big focus today is going to be how traders react to the u.s. inflation numbers that came through. we are just below that 5% mark. really the readthrough we are getting from traders so far is the numbers are still to elevated to really signal we are out of the woods just yet. you can see we are pointing to a mild drop for the open incident. most markets are looking for quite range from trading. more things to consider including a japan of course, we have that earnings season underway. more numbers coming out including softbank later on. in terms of other asset classes, we are tracking bond yields in particular, at the front end of the curve, given the moves and treasuries, the retreat with traders still pricing in that the fed is going to pause as soon as next month. currencies, gaining against the greenback. the aussie, trading flat. the other thing on the agenda today is the chinese inflation numbers. those are due out later, the cpi, ppi. we are on the cusp of another downtrend. cpi for instance is expected to come in at .3%. the biggest drop

dear ones and i invite all of them to come to pardis technology park and visit this idea. creative annabellek technology campus, why should it be a witness ? you are going to build a house. peace be upon you. thank you for watching . we reached gaza in the recent year in the news and information of the viewers, at least 12 people of hussein were martyred, three of the commanders, in fact, the islamic jihad in these senior commanders of the quds vases , were with his son at the time, and in fact, the resistance groups announced that they must respond they will give this crime and the responsibility for the consequences lies with the zionist occupation regime. on the other hand , the command headquarters of the home front of the zionist occupation regime closed the schools in the zionist settlements adjacent to the shop and actually warned the people and used the techniques that reside in the settlements that are near the shelter. the shelters remain, but we are holding an easy meeting, with the focus on dollarization and easy economic growth. the economy of these countries southeast asian cou

get it over to annabelle in hong kong.e just about 50 minutes into the session after japan and australia. korea shut for a public holiday but we are watching the ship names in particular because these are leading the advance. watching the hardware names that are moving at the most but essentially there are couple of factors at play. firstly, it is the continuation of the ai themes rally that kicked off last week with blockbuster numbers coming through from nvidia. we had mobile technology as well. the stocks index rising really for percent on friday. the best to do streak since november. we are seeing some of these moves will be higher. the other party is coming down to u.s. and japan, steve's. we understand they have agreed to develop next generation chips and this is part of efforts to maintain this economic regional order given we have been watching this deteriorating relations between washington, beijing and the headache around micron and who is going to be left willing or wanting to fill that supply gap in china. ques

taylor swift, when it comes, how can i be sure that there is an answer to your question by attracting annabelle why is it not used for cooling, why is it always a dangerous demand

gloria cazares lost her daughter jackie and niece annabell they are among the uvalde families pushing's it like when you hear there's been another shooting and it literally happens almost every week? >> it's devastating, disappointing. it's disgusting. you would think sometimes you blame yourself you think that what you are doing, you are going to prevent somebody else's child from dying. >> i know a lot of you have decided to stay here, not move away. what has that been like >> i think it's more difficult. i hate this town i hate living here my daughter is here, though, so how do we leave? >> reporter: the robb elementary school building will be demolished the surviving students and staff now go to different schools. >> there's a lot to do here to try to move forward. >> reporter: gary patterson is interim superintendent for the district, a role he stepped into last november when he volunteered. >> what i tried to do right off the bat was try to reach out to the families and open lines of communication and make an attempt to re-establish some trust that had been lost in the aftermath

annabelle: the big question with those pmi readings coming through is how much of a lift to economiessia from the reopening story in china? so far the signals have been uneven. strong spending figures over the golden week holiday, but concerns because we had official manufacturing gauge coming in and showing that to be into contraction territory. and terms of what we can expect at the open, because mainland stocks coming back online, it is not looking too good with the outlook given what we saw in the hong kong session, 81 20% decline. broadly in the session to focus is very much coming down to two different stories. per se, what is happening in the financial index, bank stocks leading losses so far given pac west, the sum after hours and concern stresses in the financial sector could squeeze lending and in turn trigger a recession, and the expectation that we could see cuts from the fed later this year, that is something bond traders are still pushing back on, powell saying it will not happen. we are seeing a retreat ending of space, currencies looking better, particularly korean won

annabelle: this is "daybreak asia".minutes into the session for seoul, sydney and tokyo. so far the set up its looking mix. trading volumes lower for some markets and really investors with a lack of clarity. we did have that inflation data coming in overnight in the u.s. and we saw the headline reading just ticking below the 5% level with the core one of the five .5% mark. so a lack of insurgency as weather inflation or disinflation trends are really starting to take effect. in terms of how we are setting up an equity, quite mixed here, japanese stocks are one of the underperformers in the session, but you can also see here the yen strength is coming back in. again, it is really that differential between the boj in the fed. we just have the april minute meetings telling us that boj officials think that 2% target is in sight for inflation, but still there is that need for further easing. commodities likewise trading a little lower in bond yields just shacking the news that we had an treasuries overnight because investors

that's where annabelle sedano joins us to discuss the changes expected now that title 42 is expiring in a matter of hours. >> reporter: hi, garvin. yes, so with that change, pretty much once title 8 is reinstated, we're going to go back to seeing those consequences for entering illegally. all those consequences that we saw prior to the pandemic and prior to title 42. so what that pretty much means is that anybody who enters the country illegally will have a ban of five years for the first time, 20 years for the second time. so right now we're seeing border patrol here inside what is known as no man's land. we've been here since monday, and we've seen the number of people, of migrants waiting in this area increase dramatically. we've seen a lot more families arriving today. we spoke to somebody from nigeria. then we saw little kids. we're seeing a lot more activity. of course, we're seeing a lot more activity as far as the volunteers that are here. they're all trying to do their best to assist anybody, all of these migrants, handing out food, snacks, whatever they can, and of course w

s. state department, counter and terrorism official annabel rate because to john bobs, which he is a political consultant, dry gentleman crosstalk roles in effect, that means he can jump anytime you want. and i always appreciate, mary, let me go to you 1st and tampa. i love what else? words unacceptable escalation. this again, it rang a bell with me because we heard this the months before the complex that started in february 21 and. and i take it very seriously. i have told the guests that listen to me in the west, the russians don't bluff your thoughts, larry, not even though i agree with you, russia, russia, that's not the united states in that regard of the, i guess the good news is that the f sixteens abilities are, you know, capabilities are grossly exaggerated. yeah, so that it will market escalation. but russia has all the tools and equipment from the standpoint of our defense systems to shoot them down. so they will be, it will just be one more example of the united states and nato as a whole of waste the military resources. and the only thing to accomplish, see, this just ir