haidi: rate hike was expected.he message afterward from christine lagarde, was that a little bit more hawkish? kathleen: yes, and to me, just so strong, so clear. "we have not finished our job yet. there's more work to do." not even leaving a question. does that mean you are going to move again in july? she was pretty definite. >> it is very likely the case that we will continue to increase rates in july, which probably does not come as a big surprise to you, but that's what i'm doing, and this is so because we are determined to reach our target in a timely manner. are we done? have we finished the journey? no, we are not at destination. kathleen: not at the destination, going to move in july. as i said, pretty clear messaging here. of course, this has taken their key rate up to a 20-year-plus high. another hike would take it up again, but more people are saying maybe it will not just be july if inflation does not behave better. maybe it could come again in september. the big problem now, one that she mentioned at

haidi: u.s. stocks slide on that hawkish message. the yen at a seven month low amid signs of wider policy diversions. shery: the boe could be delivering a jumbo hike after a shock u.k. inflation number. the brazilian central bank kept interest rates steady. haidi: look at u.s. futures. not a lot of movement. this is after the s&p 500 lost ground for a third consecutive session and fed chair's comments not helping sentiment. nasdaq underperforming. chipmakers week. it's not just the fed, it is crowded, bullish positioning. also some stretch valuations giving does rally a run for its money. we are seeing treasuries mixed. two-year yield high. we ended at the 3.71 level. crude prices under pressure in the asian session after rising in new york. signals of strengthening demand from asian buyers. we are watching brent at the open because futures rose above the 50-day moving average. that is coming online in about an hour. haidi: let's get more on her top story with fed chair jerome powell flagging further rate hikes at a more moderate pac

haidi: what is the motivator at the moment?mber of factors play in to how australians proceed beijing. the very sour state of the australian-china relationship over the last five years has played into how australians view china. the number of trade measures that beijing has put in place against australia since 2020 has also been present in the public mind. australians also watch how china behaves within its own borders. the way it reacted to the covid pandemic as well as what its posture looks like in the region. we have seen that become more muscular over the last 5-10 years. when we asked australians about the longer-term military threat, three quarters see china as likely to pose a threat to australian the next 20 or 30 years. vonnie: what are we saying about the attitude towards trade? >> it is quite similar to public opinion in the united states. in australia, seven in 10 australians said they would support, they think the priority should be on ensuring supply chains run through friendly countries. even if it results in hi

in new york haidi.: a lot of focus on the endgame for global central banks and towel in his second testimony speech driving home the need for further tightening. janet yellen says diminishing risk for the u.s. to fall into recession on suggesting a slowdown in consumer spending might be the price to pay for finishing the campaign to contain an nation. this is from an interview with bloomberg news on thursday. when talking about the chances of recession, yelling the said that odds have gone down -- janet yellen said the odds have gone down. also talking about the debate over whether the inflation target of 2%, saying the debate is not appropriate for now but that recession remains a risk as tightening continues and we could need to see consumer pending consumer -- consumer spending slowed down as the price to pay to ease cpi and this latest assessment coming after the report that shows job gains have been essentially beating economist expectations with retail sales and other indicators in the u.s. showin

haidi: bloomberg's john chen there.look at some of the stories we are following on the terminal. a group of lenders providing as much as $2 billion to semi conductor firm. the deal is said to support the production of two facilities. there would be a limited number of properties to that would have access to the intellectual property. and a new democracy party led by [indiscernible] an ability to form a single party government. greek debt is close to investment grade. europe's bond market concerns. the yield curves inverted for the first time in decade after week economic data on friday a shift in focus after u.k.'s brutal inflation prints and jumbo rate hike and you can check out those stories on read ago and see which stories are being shared among other terminal users. coming up next, we explain why there are strong growth drivers and new office jobs. this is bloomberg. ♪ oh booking.com, ♪ i'm going to somewhere, anywhere. ♪ ♪ a beach house, a treehouse, ♪ ♪ honestly i don't care ♪ find the perfect vacation rental for

haidi: that connection might t continue.e heard he was positive about a visit to washington. >> they agreed in principle blinken would invite him to washington at a mutually suitable time yet to be determined. just reading through body language, it seemed to be conciliatory towards the gentleman. the big question will be what comes out of antony blinken's meetings with the top diplomat out of the chinese government. the other litmus test is, will xi jinping actually meet antony blinken? right now as of sunday night, there was no scheduled meeting. if that doesn't go through, that could be an indication talks are going fairly well. all of the contentious issues were discussed over about 7.5 hours, much longer than anticipated. taiwan according to the foreign minister is the core of the issues with china. the biggest problem and most prominent risk in ties. i was reading through china dailies, state media. you have to read between the lines. they had a readout just before 5:00 this morning. it is muted. there are a few clarifi

haidi: always great to have you with us, margie patel.'s stick with the markets and take a look at china, because traders will be back on monday after the holiday weekend. annabelle joins us now. another great catch up or catch down when it comes to mainland stocks. annabelle: it would be a catch down if you take what we saw in the proxies or other mainland or chinese assets over the last few days, because taking a look at the moves we saw in the golden dragon index in china, h shares index, both big slumps and those in the past few days. what is really driving that when you put it into perspective? it really was that recalibration, because a lot of the optimism we had coming into june was driven by this expectation china was going to start to roll out some stimulus to prop up the economy there, but so far we have not seen those measures or announcements just yet, and you can add to that as well this expectation that anything that does come through is likely to be very targeted, so we are not expecting wholesale stimulus either. that has

haidi: what's the outlook? ready to go back on the offense after years of dormancy, but there's some levels of execution risk. >> exactly. unfortunately his optimistic message yesterday seems to have been well received, and it is based on this growing optimism over ai. and based up on the things that are not looking that bad, this is largely because of the turnaround in global equity markets, which kind of boosts hope for a potentially successful arm ipo, but sentiments could change anytime, so we will see what happens going forward. haidi: our technology reporter with the latest on softbank and the potential turnaround. plenty more to come here on "daybreak asia". this is bloomberg. ♪ when i was his age, we had to be inside to watch live sports. but with xfinity, we get the fastest mobile service and can stream down the street or around the block. hey, can you be less sister, more car? all right, let's get this over with. switch to xfinity mobile and get the best price for 2 lines of unlimited. just $30 a line

haidi: tv . this is bloomberg. haidi: the latest headlines.dit suisse ceo indicated that the bank takeover by ubs will close monday. in a memo, they said monday brings an end to this chapter in history for the bank and it is the beginning of a new and exciting future. he also said he recognized many questions remain about how the deal will affect credit suisse staff. u.s. agribusiness bungee is nearing a deal to acquire viterra that may be announced monday. bunge shareholders will hold a significant majority creating an agricultural giant large enough to take on cargill and astra daniels midland. a british hedge fund manager has been ousted from odey asset management. allegations of sexual misconduct investigated his treatment of women over 25 years. he denied the allegations. the hedge fund will be ran by his comanager for the interim. the u.s. expanded a ban on imports from china's hm region. over the forced labor of ethnic minorities. it does not expect washington's move will have major impact on operations. the a tech conference is taking

haidi: you are watching daybreak: asia.s at breakneck speed a new study found jobs held by women will be disproportionately affected. bloomberg's caroline hyde it tells us more. caroline: women. we will be hit harder by ai. here's why. we've heard that artificial intelligence can flyby us due to the dangers. it may amplify bias. one hr firm identified the jobs most likely to be replaced by ai and did a gender breakdown of the jobs. that's what? they are generally held by women. payroll clerks, executive assistance. we've seen it hit home. ibm is slowing hiring in back office functions where ai can replace roles like hr. guess what gender dominates that? ibm says this can it 8000 jobs. scaling, training. shery: we speak to the company behind the study. joining us now is an economist and hr analytics firm. great to have you with us. what does your study show? is their inherent bias with ai technology itself or is it reflective of broader society? hakki: i would not say there is inherent bias in generative ai. that will make i

haidi: let's get to annabelle and hong kong. minutes into the session for japan, korea, and australia, but looking at the stock that is moving the most on the benchmark so far, this is a japanese pharma company climbing more than 10%, so this takes it back to its highest level since july 2021. there are a couple of different stories leading to this move reaction from investors, the first is that eisai is moving closer to getting full approval for its drug and the u.s., so it is filed alongside its partner biogen to get the green light for his treatment, which is shown to be the first to slow the progression of alzheimer's. the other one is that they have filed to obtain approval from south korean regulators for the drug to be used as a very -- as a treatment there, and it is the first application we have seen for the product outside the u.s. and japan and china. they are planning to submit the application in other asian countries, so something leading to this bounds at the start of trade. let's take a look more broadly what we a

haidi: a subdued cpi -- bond traders are misleading inflation. shery: top credit suisse executives will depart as they close the biggest banking deal since the financial crisis. u.s. futures are coming on in the asian session. a little movement. tech already led gains in the new york session but the nasdaq 100 gaining 2% in the regular session and s&p 500 also topping the crucial market. s&p 500 leaning deeper into bond market territory, getting for a third consecutive session and at the highest level since last april. we are watching oracle. sales beat estimates which signaled to the cloud business is benefiting from a high demand giving another boost to the ai frenzy. treasury yields were broadly done in the in new york session. traders gearing up for a potential fed pause. a little upside in the asian session after falling to the three-month low on goldman sachs cutting price forecast for brent but it is all about the cpi numbers and how it will set the tone for the rest of the week. kath

haidi: take a look at u.s. futures, the upside, after the mixed finish in new york after fluctuating between gains and losses. we were seeing traders digesting jerome powell's hawkish signals not to mention the end of the quarter so more positioning adding to volatility. nasdaq 100 on the best ever first-half pace. chipmakers under pressure but not so much and that after our session after micron jumped on the upbeat forecast and sales will be much -- as much as 4.1 begin dollars in the fiscal fourth-quarter and we are watching treasuries advancing, mainly during the u.s. afternoon session. um, despite the fact we got those more hawkish comments, the 10 year yield fell to that 3.7 zero level. let's discuss the hawkish commentary because several central bankers have like further interest rate hikes and saying inflation is not tamed but that leaves japan is the big outlier on the monetary policy stage. kathleen hays is here with the latest and let's start with the fed, ecb and bot. >> some of the most powerful cen

let's get back haidi: to the top start -- haidi: get back to the top stories. sources telling bloomberg janet yellen is expecting to visit beijing in july. it comes with an executive order aimed at regulating certain u.s. investments in china close to completion. let's get to vonnie quinn. what to we know about this meeting? for a long while was on pause. vonnie: it comes on the heels of antony blinken's visit last week and treasury secretary yellen had shared a stage in paris with her new counterpart. just in april. these meetings are gaining steam. there was a little bit of a delay. the chinese spy balloon incident did not help and escalating tensions about taiwan and russia and ukraine. so many things had delayed this revamp of u.s. china relations but it does seem the self diplomacy element is ramping up. we are expecting at some point president biden will meet president xi jinping in the near future that will be their first meeting since the and asia in november 2022. what we know for now is in early july the treasury secretary will meet her counterpart as

haidi: you are

♪ haidi: good morning and welcome to "daybreak: australia." i am haidi stroud-watts in sydney.nnabelle: i am annabelle droulers in hong kong. we are counting down to asia's major market opens. shery: good evening from bloomberg's world headquarters in new york, i am shery ahn. the top stories this hour -- u.s. stocks slide bonds advanced as traders unwind bets on rate cuts this year. profit taking hits tech, while goldman turns less bullish on tesla. yvonne: bloomberg learns that the u.s. treasury secretary will visit beijing next month for her first talks with her new chinese counterpart. david: in a late-night speech, vladimir putin condemns wagner mercenary leaders as traders, while yevgeniy prigozhin denies attempting a coup. take a look at how u.s. futures are opening in the asian session. slight upside with gains of 0.1%. of course we had the s&p 500 falling, tech continuing to feed . those ai related names taking a hit, including nvidia. of course we are watching these markets trying to price in blood price out the possibility of fed rate cuts this year and that is hitti

haidi: our chief north asia correspondent.is the withholding of more meaningful stimulus creating the weakness across equities, but also the yuan as well. we will bring you more exclusive interviews at the driving forces of the economy. catch them at these times. speaking of the chinese currency, it will be interesting to see any kind of reaction if we get the stimulus but through. the yuan has been one of the favorite ways to play the economic weakness and the lack of stimulus we see after the week economic recovery. we have seen the yuan down 5%. it's critically at the lowest in more than two years against the basket of major trading currencies. all of this is coming with pretty low volatility. we have seen a fall in the key basket every week since late april. it's a record losing streak. watching a bit of strength in the dollar. the bloomberg dollar index up by a marginal amount. also, we are watching yen intervention, at least when it comes to verbal intervention. we are seeing the dollar-yen trading softer after the early

haidi: u.s. and china have described antony blinken's meeting with the chinese foreign minister in beijing as candid. for more details, stephen engle joins us in hong kong. 7.5 hours of candid and constructive. we will take it as positive sentiment given how low expectations were going into the meeting. >> i look at it like i look at work. under promise and out deliver. going into the talks with blinken as the state department essentially lowering expectations saying there will be no deliverables, essentially this was designed to get dialogue going. the foreign minister walking with antony blinken, essentially said the relationship right now is at its lowest point since the establishment of diplomatic relations in the 1970's so they can only go up. they could go down but at least they will try to put a floor on that and they talked for much longer than scheduled, seven point five hours yesterday in beijing and they were candid and constructive and the readout from the state department was that co

haidi: what happens next?e commission invited google to appear at a hearing in brussels to present its counterargument against the commission's preliminary view. it also says it remains committed to creating value for the publishers and advertising partners and its focus of the eu they felt was very narrow. it's important to point out that the eu's case is part of a bigger campaign against u.s. tech companies. with the eu really wants to do is come up with a comprehensive list of rules for ai, for online technology and privacy and this is part of that effort. we should also point out they are targeting online advertising, which is south of its -- alphabets most lucrative business grading 80% of total revenue last year which adds to 225 billion. so stay tuned. but investors at this point appear to be shrugging it off. haidi: bloomberg's su keenan with the latest. let's look at the latest with crypto. a second south korean platform as the suspended customer deposits or withdrawals. there's market volatility and

haidi: you allude to these issues.eached regardless of how many conversations you have at high levels, that the tech decoupling, economic decoupling, the geopolitical tensions in this part of the world and the south china sea and the pacific not to mention taiwan, they are so far apart, would you say there is any element you could get them closer together, even with more engagement? amanda: i think what is positive is the sides are basically saying they are willing to get back on track to last november, when the leaders met in bali, agreed to create a process to begin to develop the principles that would guide the relationship and stabilize the relationship. we saw a couple small practical outcomes that came out of this visit. the two sides want to increase people to people exchange, increase the numbers of direct flights, and on the issues where they remain divided, the big one is really that the two sides still have different approaches to the overall relationship. both sides want to avoid war, but they differ over h

>> thanks, haidi.has gotten narrower -- path has gotten narrower, delivering the rba hikes back to back. both of those were a surprise to us. they tilted the rba very much along this path that having gone through the speech he just delivered, they are very concerned about inflation expectations and where those are going, and whether that labor productivity, the wages versus labor productivity trade office something that could come unstuck when it comes to that downward glide path for inflation that is in the mix. it is in the data we've got. we've got a weaker economic outlook coming through for the economy. there is a very narrow path the rba is treading there. there are very clearly focused on making sure it doesn't come through and come unstuck on that path on the inflation front. shery: especially since about two hours from now, we are expecting the first quarter gdp numbers out of australia to show the recovery has actually stalled. i know the numbers are backward looking. but what are we expectin

haidi: annabelle in hong kong. still ahead we will be diving deeper into the china beige book report and discuss really where to next when it comes to the economic recovery and stimulus prospects. but up next we will be talking investment strategy with optimal capital advisors and checking their outlook for the second half of the year. this is bloomberg. ♪ i need it cool at night. you trying to ice me out of the bed? baby, only on game nights. you know you are retired right? am i? ya! the queen sleep number 360 c2 smart bed is now only $899. plus, free home delivery when you add an adjustable base. shop now only at sleep number. haidi: take a look at this chart as the first half of the year wrap ups that shows global stock market performance year-to-date broken down by sector, and you can look at energy as the only sector down this year, reversing the lead last year. tech and consumer discretionary stocks are of course course leading the pack. let's get more analysis on what we can expect in the second half of the

haidi: the recommendation that the vulnerable people wear masks. outdoor recess for schools being canceled. this is reminiscent of the bushfire season we had here in australia with parts of sydney most iconic beaches and images of new york city being blanketed in this orange fog. it is disturbing and i hope everyone is staying safe. again returning to mask wearing. speaking of canada, it is not a usual day that we have them leading the headlines. we are watching a headline because of a move from the bank of canada. they boosted the rate no explicit guidance on the next move. this is potentially feeding back into that expectations if you take a look at these treasury moves. shery: we saw canadian rates lifting higher. now we are seeing renewed volatility around the pricing of fed policy expectations now traders fully pricing in a fight height -- a rate hike are the fed meeting. this ahead of next week's u.s. cpi numbers that will be released on the first day of the fed meeting. we are seeing a headline and core measures expected to decline but well

haidi: kathleen hays there. she mentioned chinese regulators are said to be stepping up scrutiny of trading as the yuan -- e1 slides to the deepest levels in several months. of course that weakness is being seen when you look at the trade-weighted basket of currencies as well. what can the pboc do next to support the yuan? they have quite a few tools in their arsenal. >> that's correct. they will do what they've done last year, firstly they would have to signal for a stronger fixing, yesterday we had the largest deviation since last november. that has to continue to send a message to the market that the people want a stable if not stronger yen instead of a weaker yen. the next tool, they could cut the ratio down to 5% which was the level before 2021 so that could release more dollar liquidity and support the yuan. two sort of slow capital outflows. shery: what would be the outlook for dollar yuan going forward? >> the level we are looking at, the high we reach last year, and it's more difficult this year because

haidi: the u.s. guard says unified command will continue searching the seafloor for information to determine the cause of the implosion. more to come. this is bloomberg. ♪ ♪ shery: we are getting the inflation numbers out of japan for the month of may. the core price inflation, excluding fresh fruit, growth of 3.2%. easing from the previous month of april when we psycho unexpected acceleration, but also higher than economists expected. this leads to the headline figure, growth year on year of inflation of 3.2 percent for the month of may. again, easing from the previous month in line with estimates for excluding food and energy. court -- surprisingly, when it comes the core-core, we are talking acceleration from the previous month, come again higher than economists had expected. this is very important on how the boj will make its case for holding stimulus in place. we have seen core prices decelerate from the previous month. will that lead them to continue the argument that they need more durable dem

haidi: kathleen hays there. turning to the banking sector, ubs has completed its acquisition of credit suisse, the biggest merger in banking since 2008. bloomberg intelligence thinks the deal brings challenges to the near term investment. for more let's bring in analyst alison williams. you have been looking at the risks in particular for ubs. how does that scenario shape up for you? alison: there is obviously a lot of opportunity combining a bank, especially in the wealth management use meant -- even though that unit is slated to shrink under ubs. but there's sizable execution risk, especially due to the cultures. and can ubs retain the talented wants? these are -- talent it wants? these are people, not businesses. these are businesses everyone wants to get into. so they have a positive outlook but it is not a secret, especially the franchise in asia. there are banks, deutsche bank, citigroup, very aggressively looking to go after parts of the business. goldman sachs and morgan stanley have also talked about re

haidi: what a busy week.ur next guest says apac economies are struggling to maintain traction with a downturn in global trade. the chief apac economist at moody's that is -- analytics. steve, look at the most direct policy impact we could see this week. potentially, a move from the pboc. do you think that is warranted? isn't that something we are expecting given that so much signaling has spent -- pointed to the opposite from the people's bank of china? steve: i think definitely there will be stimulus coming along the way for china. given the really weak numbers and the unevenness of the data coming out of china. i am not so sure there will be an overall rate cut, a cut in the lpr or something like that. my guess is that because of the now very high debt level in china and the high debt level amongst the whole government, amongst households, amongst business, perhaps, a rate cut may not be the way that the policymakers want to go to stimulate the economy. because, there will not be a desired stimulated increa

haidi: global economics and policy editor kathleen hays. are focusing on his china, looking to ramp up stimulus as the president faces obstacles for a faltering economic recovery. let's get more details from bloomberg shanghai bureau chief. interestingly we are seeing some levers being pulled when it comes to certain rates being cut , this comes as credit demand continues to look weak, and more efforts when it comes to these stimulus measures. is it going to be enough? what are they planning to do at this point? charlie: everybody is now expecting the pboc to cut the key policy rate, which is the midterm lending facility rates tomorrow, following the surprise cut in the short-term policy rate, the seven-day reverse repo yesterday. they are doing this because the economy, the post-covid rebound is quickly losing steam. the indicators looks pretty weak across the board. exports have fallen for the first time in three months. there's no inflation. manufacturing activity has contracted, business confidence is low. residential sales has been sta

haidi: it did take investors by surprise. alibaba out-earning to familiar faces. -- turning to familiar faces. stephen engle in hong kong. this was a surprise when the news came through. as you look at this does it make sense? >> i hate this terminology, but time will tell. joseph tsai knows the alibaba business intimately. he was there in 1999, as was eddie wu who will be the new ceo. they were cofounders along with jack ma. jack ma was the face and the color of this company. but he has been sidelined through the last three years of regulatory scrutiny and crackdown. it is interesting that they would bring joseph tsai, who was not into retirement. he has gone into other businesses. he is the owner of the brooklyn nets. he owns the new york liberty and the wnba. he owns a team in la crosse. he has also invested heavily into blockchain. he has lots of business acumen. he is well respected on wall street. that could be his calling card they as alibaba embarks on this restructuring into six units. they want these to be individua

i am haidi stroud-watts in sydney. >> we are counting down to asia's major market opens. i am shery on, the top stories this hour. wall street israeli deepening beyond ai with traders still piling in about an overbought market. u.s. listed china starts getting a boost from beijing stimulus plans. the ecb hikes very likely. the boj outline jp morgan. the return to retail growth and the glimmer of hope for china's sluggish consumer sector. u.s. futures opening in the asian session pretty muted. this after the s&p 500 strengthened for six consecutive sessions. the nasdaq 100 also getting close to 40% already. microsoft, one of those names closing at record high, against 45%, adding $800 billion in market value. there is an ai push making investors very optimistic about that stock. we are seeing yields holding steady. we have a little bit of a lift when it came to oil prices given this expectation of more stimulus coming from china. we are seeing a little bit of pressure about that $70 a barrel level. we are watching the deli very closely. we have seen the ecb hiking, the fed

i'm haidi stroud-watts in sydney. >> i'm annabelle droulers in hong kong. we are counting down to asia's major market open. >> i'm shery ahn. the top stories this hour -- tech mega caps lead a self rebound as traders walked on strong u.s. economic data. snowflake jumping on an ai hook up with nvidia and tesla rallying. >> ubs plans to cut more than half of their 45,000 strong workforce, with trading and investment bank hardest hit. >> plus inflation set to have eased in may, potentially supporting the case for an rba pause. take a look at how futures are opening in the asian session. downside pressure after we saw the stop jump in the new york session. the big rally entech was a risk on the, with the s&p 500 headed toward the fourth consecutive month of gains, the longest streak since august of 2021. u.s. consumer confidence jumped to the highest level since the start of last year. u.s. home sales also rising in the fastest pace in over a year as well. treasuries are falling on the strong data with the 10 year yield rising. around four basis points or so to