this is bloomberg. ♪ haidi: -- kathleen: the u.s.odily continues for a second day as -- let's bring in a senior macro strategist at state street. i have to get your reaction to jim bullard stepping down from the st. louis fed two or three years earlier than he would have had to. he would have had to retire at 65. he is 62. what difference does it make? will it have an appreciable difference to have one of the most hawkish thought leaders leaving the fomc? >> certainly he has been early in the hawkish process, so we are going to miss that voice, but he has not been alone for really the last year, there are plenty of talks, there are many vocal hawks, so the debate will continue, and as we get to the next part of the cycle, it does become a bit nuanced. the fomc will miss his contributions to the debate, but i think it will be a robust debate. kathleen: robust enough to turn the expectations of the july rate hike not into moneymakers, robust enough to say, no, we have got to keep going and do a rate hike in september and november? >> i

haidi: the u.k. reviews microsoft activision takeover bid, after the green light the deal in a defeat for the fdc. kathleen: the bank of new zealand is said to hit pause on inflation, ending a streak of 12 straight hikes. a second day of rallies on wall street. the s&p 500 up about .7% closing over the key 4400 level. the nasdaq up by .5%. the dow up by almost a whole percent. it's the sense of optimism of the cpi, maybe it'll show a more benign inflation outlook. that is what traders are looking for. as we look to futures trade, and see optimism, -- we can see optimism, the gains are fairly decent. the markets are unchanged the stock futures side. the 10 year, 3.97, the rally continued. it was a drop of about a .10%. the optimism on cpi. oil is up. that was one of the things that drove the major market averages. the energy stocks. westech's intermediate up to percent, closing at $72.83, breaking through the 100 day moving average. you can see the optimism has faded as well. the big thing on a quiet

haidi: the u.s.rth korea has not responded about the fate of an american soldier across the border into the north. he may have been trying to escape a court-martial after being charged with assault while stationed in south korea. more to come here on daybreak australia, this is bloomberg. ♪ bridgett is here. she has no clue that i'm here. she has no clue who's in the helmet. are you ready? -i'm ready! alright. xfinity rewards creates experiences big and small, and once-in-a-lifetime. to finally lose 80 pounds and keep it off with golo is amazing. i've been maintaining. the weight is gone and it's never coming back. with golo, i've not only kept off the weight but i'm happier, i'm healthier, and i have a new lease on life. golo is the only thing that will let you lose weight and keep it off. who loses 138 pounds in nine months? i did! golo's a lifestyle change and you make the change and it stays off. (soft music) shery: taking a look at the stocks we are watching in the after hours. big earnings when

i am haidi lun i -- i haidi am 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. microsoft sloughs an impressive price tag on new products. haidi: treasuries pairing gains as u.s. consumer social resilience, despite a retail sales decrease. traders are pricing in a rate hike next week. shery: the g20 remain split over russia's ukraine war, with no consensus yet on future debt relief deals. u.s. futures coming online in the is in session under pressure. this, after stocks gained ground in the regular new york session. we had investors digesting earnings beats, not to mention disappointing industrial production and retail sales numbers. the banking index gained more than 3%, last day in more than six weeks, on results from morgan stanley and bank of america. looking in the treasury space, a bit of a mixed picture. not a lot of change. but the 10-year yield fin

haidi? haidi: david ingles there. it is incredible about the markets.and of course governor ueda himself going into this meeting. u.s. futures of course when it comes to the asian session passing through, the reaction to the fed, we saw the initial reaction was stocks gaining, treasury falling, the dollar falling as well. futures about .7% to we will see that reaction across the board when it comes to chip and aia and chip-adjacent stocks. samsung certainly not as exuberant to the upside when it comes to that ship recovery. they see a gradual, perhaps more modest recovery going into the second half. also watching of course the start of trading in china. have we seen a deceleration from the enthusiasm following this we's rally? still up about .5%. coming up later, we will be speaking to the vice president and the copresident of exxon -- xpeng, brian gu. this is bloomberg. ♪ 76% of 23andme health customers surveyed reported taking healthier actions. because they know health isn't just a future state. health happens now. start your dna-powered health journ

haidi: u.s..ata on friday the day after numbers on job openings and jobless claims come in as well. he indicators for the fed. before that, the central bank will also be releasing minutes of the fed [laughter] june meeting. that is mid-week. cooler inflation is bolstering the case for a rate pause. the aussie trade figures are also due out on thursday. in japan, the tampa is the first big data point of the week. apart from the usual headline sentiment numbers, we are watching for changes to corporate expectations on inflation as well as the yen. we will also get factory pmi data from across asia on monday. economists expect the survey to come in at 50. that is your week ahead. shery: our next guest says u.s. stocks are looking expensive. shana sissel is president and ceo at banrion capital management. good to have you with us. we have talked extensively about this $5 trillion tech rebound. the nasdaq 100 is trading at near 20 six times estimated earnings. but are you seeing any other parts of the

haidi. haidi: david ingles in hong kong. great chart.u need to know in today's edition of daybreak. bloomberg subscribers can go to dayb on their terminals, and it's also available on mobile in the bloomberg anywhere app. you can customize your settings so you only get the news on industries and assets you care about. this is bloomberg. ♪ >> turkey has dropped its opposition to sweden's nato membership bid. it turkish official says president erdogan received assurances on key demands from stock, including its approach to supporters of kurdish separatists operating in its territory. the nato chief says he expects the only remaining holdout, hungary, will also prove sweden's bid. >> we wanted to create institutional framework for closer cooperation with ukraine. it will be done in four months. ukraine's nato council. and then the procedure of entering or integration into nato will be more simple. and probably we can agree on that, too. >> no map for ukraine? >> no map. we can agree on that, too. it is the position of my country. i kno

haidi: yeah. i'm watching some of these leading indicators of economic expectations and confidence in australia. we are seeing some weakness coming through. quite a bit of weakness when it comes to that index, falling to 48 from 50.3 in june. this is the lowest reading since december of 2022 and falling firmly into contractionary territory. employment also falling to the lowest since december 2022. prices charged at the highest since january 2023. so those inflation factors are really pushing through. the contractionary number is interesting given expectations are we will see perhaps a more dovish mood from the rba going forward. bloomberg economics is even looking at a potential rate cut by the time we get to 2024 next year of course. the manufacturing pmi falling to 49.6. that services component also seeing weakness, falling from expansionary territory to 48 in july. clearly this will be one of the further headwinds that the aussie dollar faces potentially from here. westpac already sand the aus

haidi: let's take a look ahead.are watching new zealand's justin minister -- she faces charges of reckless driving and resisting arrest. new zealand releasing trade dump data for june. also top of the next hour, manufacturing and pmi numbers for australia. shery: coming up, nab expects beijing to help boost the yuan and get the economy back on track. we will discuss. this is bloomberg. ♪ i don't want you to move. i'm gonna miss you so much. you realize we'll have internet waiting for us at the new place, right? oh, we know. we just like making a scene. transferring your services has never been easier. get connected on the day of your move with the xfinity app. can i sleep er at your new place? can katie sleep over tonight? sure, honey! this generation is so dramatic! move with the xfinity 10g network. did you know you can get someone to shop for you? stitch fix really gets me and what i need. even better? they save me a trip to the mall. it's easy: i share my style, size and budget. and they do the shopping for me.

haidi: welcome back.will be watching apples asia suppliers after they are asking them to produce more models this year. our chief technology and corresponding joins us. how does this compared to last year? >> it is actually the same, flat 85 new units this fall. september through the end of 2023. 85 million this year, same as last year and the year before. on the surface, flat in this tough economy in the smart phone slow down sounds pretty good. but here is the other side of the perspective. this is a major iphone operator. the iphone 15 pro, significant changes to the design, camera, processor, battery life. compared to last year, there were minor updates. all things considered, pretty good. haidi: the flat numbers, is it a supply issue? >> i think it is a demand related situation. apple is forecasting it will not need more than 85 million units for this fall given the idea people will hold on to their money more so given the economy and the slow down you have seen. i think all things equal, this new ip

haidi: u.s. china relations will be in full focus this week as treasury secretary janet yellen's attends g20 meetings in india. climate envoy john kerry is also holding talks in beijing. let's bring in stephen engle in hong kong. let's start off with yellen. what will the strategy be at the g20? stephen: i think you are right in that she has to find further areas to de-escalate the relationship with china. they have had antony blinken go to beijing, she was there, john kerry is there now. there will be more dialogue, but will there be a higher level meeting at some point between xi and biden? of course they have not met or even talked since the last g20 back in bali in november, eight months ago. finding areas to de-escalate further is going to be a priority obviously for the biden administration, and for the matter of china as well. as their economy is sputtering. we are probably going to get disappointing gdp numbers. the headline later today will probably be very alarming in that it is 7.1% as

haidi: u.s. listed shares of chinese company's slide as beijing pledges to rebuild shattered private sector. shery: in the senate, votes to block china from buying oil from u.s. stockpiles with beijing increasingly reliant on russian fuel. look at how u.s. futures are coming online in this session after a mixed close on wall street, the dow slightly higher, s&p 500 falling. disappointing tech earnings being fed through the market with the nasdaq 100 losing more than 2% today. we also had those numbers showing resilient labor market, sending treasury yields higher. that unexpected drop in weekly initial jobless claims leading to traders pricing in higher odds of the quarter-point rate hike beyond next week. look at the 10 year yield at the 385 level. we are seeing a little upside for u.s. oil prices in the asian session and extending those gains we saw in new york. it was a choppy trading session with dwindling liquidity. the expiration of the wti august contract being felt across oil markets. hai

haidi: annabelle in hong kong.ake a look at how risk assets in australia are setting up as we get into this session. still percolating through is the impact of that hawkish hold from the rba we had yesterday. that put the aussie dollar on the back foot. pretty whipsaw session when it comes to the aussie on the back of that decision. we saw the bloomberg dollar drop for a third straight day. we did see some strength coming back into those commodity currencies against the greenback. pretty thin flows into spot options. as we have been seeing, trading in cash treasuries have enclosed for the independence day holiday in the u.s. taking a look at the aussie trade, 67 u.s. cents at the moment. we are watching dollar-yen pretty close to that 145 level. we have seen intervention in the past. rishaad: a quick look at what's going on at aussie dollar unchanged right now after that pause, or should i say, lack of movement by the royal reserve bank of australia. and haidi was saying, we have the yen at 144.46. this is what we

haidi: paul allen there.een told the financial regulator enacted searches of several local binance officers. let's get the detail from our pension funds correspondent, amy. what can you tell us? amy: what we do know from multiple sources is on tuesday there were search warrants executed in a number of locations in australia. we understand one of those is in sydney, the other locations are unclear. this is part of an ongoing probe domestically, which lines up with the action taken around the globe against binance. the australian securities and investments commission has a probe into the defunct derivatives business in australia. and the financial services license of the business was canceled in april. this appears to be the latest step in the investigation. shery: what is binance saying? amy: this told bloomberg they are cooperating with authorities and had previously said that, you know, that it was complying entirely and had conducted a review of the concerns around the derivatives business. one of the cofou

haidi: u.s.conomy reporter catarina saraiva, and cross asset reporter emily graffeo you're there, thank you. u.s. treasury secretary janet yellen will meet with her chinese counterpart on friday. jodi schneider joins us now from washington. what is on the agenda today as she goes into this day of meetings? jodi: so i think this is the getting to you phase of the stocks. they are still ruling out the red carpet certainly in terms of policy officials, she will be meeting with the premier, the former vice premier, the former head of the china central bank, as well as american businesses. we don't know exactly who yet with the businesses, but american businesses doing business in china. so it is full of policy chats. but really we don't expect -- the expectations are fairly though for any decisions being made between the two countries. but given that it is the world's two biggest economies, it is really viewed as important that they are sitting down to talk. secretary yellen was supposed to come earl

haidi: this is the wildcard. in previous times of economic weakness globally china has always been countercyclical. we are seeing further signs of the economic deterioration despite in yesterday's numbers the consumer at the top levels still looking ok. looking at what wall street is seeing, seeing cuts to the china growth forecast when it comes to morgan stanley and other banks seeing growth of about 5%. the growth target is in jeopardy. we are also seeing signs that the stimulus forthcoming will be smaller and more muted than during previous periods. as well as the productivity of stimulus from china has become weaker and weaker as we are seeing with multiple rounds over the last few years. citi is lowering the forecast saying the official target set at five person -- set at 5% is now at risk. shery: let's hear directly from the treasury secretary, janet yellen to hear what she had to say about the chinese economy, the spillover and what happens in the u.s. she spoke exclusively with bloomberg pb from the sidel

haidi: haidi: it is decision day for the rba.loomberg intelligence says array tom price crowd crush on demand -- a rate right could crashed home demand in the second half. ocbc targets a revenue boost. we will hear from the ceo at this hour. take a shery: look at how u.s. futures are coming online. a mildly positive session in new york. we had the s&p 500 edging slightly higher. but it was a holiday shortened week and a holiday shortened trading session as well, ahead of the fourth of july celebrations. tesla led to a car stocks gaining ground and battery suppliers gaining ground. also watching treasury yields push higher. the 10-year yield around 3.85. when it came to treasuries, it was a yield curve inversion in the 2's and 10's reaching multiyear extremes. that is what we are watching in the treasury space. also watching oil prices. the asian session slightly pushing higher. that did not happen in the new york session. we had a lot of pressure. saudi arabia pledging to extend voluntary output cuts, and at the same time, the vo

haidi: [laughs] we do have all of that.ing sk hynix in the next hour, and lots more to come here on "daybreak: australia." in the thick of earnings. kehe obloomberg. ♪ you're a rock star. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday to transform your business. but it still doesn't make you a rock star. so unless you work with an actual rock star. hi, i'm ozwald. hello ozwald. pam, you are a rock- i wasn't going to say it. ♪♪ 5-hour energy. think of it as 5-second coffee. for when you wake up too late to make it. or you don't have time to wait in line for it. or you're just too busy for a coffee break. 5-hour energy. the 5-second coffee. shery: more now on china's removal of she nghe an her in ministry. he disappeared from public view into -- qin gang. student media gave no explanation for his departure. will be replaced by his predecessor, wang yi. let's discuss with isaac stone fish, ceo of strategy risks. always great to have you with us. we were talking about the opaci

haidi: great to have you with us.an get a roundup of the stories that you need to know to get your day going on dayb . you can also customize those settings so you just get the news on the industries and assets that you care about. this is bloomberg. ♪ haidi: bloomberg has learned that the cfo is planning to leave the company. he has informed the ceo of his intention to move on, though the decision on timing has not yet been made. the company went public in 2019. uber said he would not comment on and executives career decisions. shares in icahn enterprises have jumped their highest since may after its restructured loans. the stock had fallen by more than half in may after a hindenburg report said the company was overleveraged. warren buffett has taken control of the liquefied natural gas export project in maryland. it has agreed to by dominions energy stake, boosting its limited partnership ownership to 75%. the deal gives berkshire control of one of just seven operational lng plants in the united states. this is

haidi: that's right.see the rally continue or is there going to be a correction there? hideyuki: many people think there is a chance of correction, because trading houses are probably one of the sectors that are likely to see a disappointing earnings. because commodity prices have been very sluggish. despite that, share prices have been rising because of the excitement of warren buffett's investment. many people think that they are probably one of the biggest candidates for facing correction. haidi: bloomberg senior editor hideyuki. we are five minutes away from the cash trading in major markets including sydney, where we are seeing a pretty optimistic started trading. 4/10 of 1% higher. asian earnings are set to gain on the back of optimism on the china stimulus announcement. of course, still targeted toward the property sector and consumption, but that was really what we got out of the euro meeting. a bit of downside for kiwi stocks and we are looking at a bit of a mixed start to trading when it comes t

haidi: it is a big friday. this underscoring the question of what sort of massive reaction we could see across risk assets globally. we have an unexpected decision from the bank of japan, that is something we should not be underpricing. take a look at the future set up, it is muted given the position we had on wall street overnight. this is the picture. sydney futures down by .6%, into the final session of the week. we're getting the rba decision as well. we are seeing moves across the margins in terms of expectations there. kiwi stocks down marginally. watching the chicago nikkei futures, looking flat at the moment. it's likely to be a turbulent session when it comes to japan. i should mention looking ahead to china things are looking burdensome as well for the futures picture despite the conversation around how much support we can get from the property sector. front and center, it is about the boj. kathleen: no quiet ending to this week. we are watching yen ahead of the bank of japan decision, after the sneak

haidi: paul allen with the latest. let's look how we are shaping up at the start of the new trading week in asia. looks like a pretty positive open in sydney futures. we could see a bit of a pickup in sentiment on the back of what we saw in the u.s. in the previous session. futures relative to fair value look like an early gain of may be .5% particularly, the sentiment boost coming after u.s. equities saw a rise friday of inflation data showing some easing spending also picking up as well. of course, quite a bit of caution going into what is a really split rba decision. the policy tightening cycle clearly nearing the end. the question is whether the rba goes for one more hike this week. 15 seeing the move. 11 predicting a hold. money markets are pricing in no change at the cash rate to stay at 4.1%. watching the aussie dollar closely, 6657 there. also watching kiwi stocks down pretty much flat at the moment. watching dollars/en close to the 141 handle. the boj surprised move was friday. the loosening of its grip on the

haidi: what are the takeaways for investors? data, you have seen selective parts of the chinese consumer still strong. some parts of her spend -- revenge spending. will that extend to further strength in luxury? how would investors be wanting to get exposure to the strength that is there? >> when we look at what the bullish signals are in the data, you're seeing a pickup in physical activity. it is small but an improvement which tells you that you are going to get targeted stimulus including on the fiscal side. that is positive. on the whole markets should prepare for the fact that this will be a year of modest growth. and that includes much more modest stimulus then they thought would happen in january and february. haidi: always great to chat with you. managing director at china beige book international. let's get to other stories when it comes to china or in the country has issued a rare alert for flooding. enforced until 8 p.m. on tuesday evening. orange alert, the second-highest warning has been issued for northern district

haidi: yes. certainly.o another story out of japan we are watching the united nations nuclear watchdog says the country will release water from the site is within regulations. they have officially given their blessing to the release. what happens now? isabel: right. yesterday was a momentous day for this. since the nuclear accident in 2011, japan has been accumulating this water used for curling the plant and develop this plan to release it into the ocean over a period of decades after making sure it is safely treated. so they brought rate in to do the study into whether it will be effective and whether it will affect the firemen. they said clearly it will not affect the varmint and it would be safe. they will open an office at fukushima and monitor the process as it goes on. the latest this morning is that the release could start as soon as next month in august. we don't have firm confirmation of that but the government has been saying all along it will start this summer. so we are just waiting for further

haidi: the need is permanence.hat will convince the fed that the tide has actually turned for good, that this is not like the previous head fake and that will not see the secondary charge inflation pressures? stuart: we are going to need to see more softening in the labor market. if you see housing and the new strip out some of the less intensive services within the core cpi, things like airfares, if you strip those out and focus on the labor-intensive elements within the cpi services, you end up seeing about 30 basis growth month-on-month. that is still down from what we had seen previously, but inconsistent with the fed's 2% target. 150 thousand private sector jobs added, that is double the pace that the fed is expecting over the long run to be consistent with operational growth. we need to see more loosening of the labor market to know that inflation is sustainable. kathleen: the wage book showed relief on inflation. and they are watching other elements of the economy. in terms' forecast, where is the labor mark

haidi haidi --haidi?d from that he believes investment banking is at the bottom and that the worst is behind us. when did the deal start picking up? he does not see that happening in the media aftermath. perhaps in 2024 is what he is looking at. but clearly, what these banks had to say about investment banking and about the downturn in trading, a big shot in the arm for banks talks. we also heard performance say he believes it would be a mild recession. you are looking at a survey from bank of america. 60% of fund managers they surveyed believe that there will be a soft landing and perhaps no recession. goldman sachs is up in the u.s. wednesday session. a lot of focus here because for six weeks now, goldman sachs has been pretty much morning mystery that it will be a weak quarter. people close to the matter say it will be a worst quarter. the bank has been cautioning that they could see a 25% slowdown in trading revenue. shery: su keenan with the key takeaways from bank earnings season this quarter. you c

haidi: what do you like in india?, the government is -- we believe doing things right where we have a stable government that is staying away from the big geopolitical and it has the tailwinds from the shifting supply chain. one shift in supply chain will be huge and there's many sectors in space where india will benefit. you start to see infrastructure really surging. infrastructure on transports, making life easier or businesses for people, those are all coming through. this is an investment going on for a number of years and getting traction. we do think that the supply chain tailwinds is a big one, alongside logistics, moving these goods around, you have things made in india, also the economy. you have more and more of a resilient space which is good for international investors, which is good for stability. haidi: always great to chat with you, cio at nomura wealth international. let's get a look at early movers. you are watching these japanese defense names. annabelle: that's right, we are 10 minutes into the sess

visit gcu.edu ♪ haidi: the u.k.he cptpp, becoming the newest member since it came into force in 2018. paul allen joins us with more. how significant is this for the u.k. ending broader pact -- and the broader pact? paul: it depends on who you talk to. there are already a lot of countries in there. internal projections from the u.k. show a pretty minimal impact from the deal. then again, the u.k. business and trade secretary very enthusiastic, saying it will make a significant difference and giving the u.k. a seat at the table in the world's fastest growing region. for u.k. products there will be zero tariffs on things like cars and whiskey, and for cptpp countries that run businesses in the u.k., she says that will turbocharge that investment. haidi: -- shery: what about china? how is that likely to progress? paul: that will be an interesting one because china has a number of difficulties with admitting members of the cptpp. new zealand was the host of this meeting over the weekend. the trade minister gave a very di

haidi: bloomberg's su keenan there. the next hour, winthrop capital warns investors have fallen victim to the phone mode trade and ignoring valuations at this point. and our guests join us to discuss china's economy and their interpretation of the policy support we have seen so mark -- so far. that is it for "daybreak: australia." "daybreak: asia" is next. this is bloomberg. ♪ let innovation refunds help with your erc tax refund so you can improve your business however you see fit. rosie used part of her refund to build an outdoor patio. clink! dr. marshall used part of his refund to give his practice a facelift. emily used part of her refund to buy... i run a wax museum. let innovation refunds help you get started on your erc tax refund. stop waiting. go to innovationrefunds.com you really got the brows. 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 b

haidi: plenty more to come on daybreak asia.loomberg. ♪ shery: breaking news out of japan, exports rising less than expected for the month of june coming in at growth of 1.5%. for lengths -- still in acceleration from the previous month of may when it only grew 6.1 percent. import numbers plunging down 12.9% year on year. in fact, deepening the contraction for the previous month. this is actually led to a surplus of ¥43 billion, and this would actually be the first time in japan that they actually turn into the black when it comes to the trades surplus for the first time since july of 2021. the first we know that exports have really taken a hit from external demand stagnating, but the big fall on imports as well with perhaps that meeting demand domestically as well has led to that trade surplus of 43 billion yen. when it comes to those exports for different regions, a contraction for export of 11% year on year to the u.s. actually buys them more than 11% year on year. exports rising 1.5% year on year. let's stay with japan becau

haidi: stephen joining us from hong kong. another story we are, watching treasury secretary janet yellen meeting with vietnam's prime minister in hanoi. yellen is in vietnam to promote trade ties as part of the biden administration's push to reduce u.s. reliance on china. yellen said vietnam is, in her words, a key partner in advancing of free and open indo pacific. shery: coming up, our exclusive interview with ecuador's president garrett lasso -- g uillermo lasso who is seeking to reform capital markets. haidi: affinity investment manages tells us why they are cautious on committees that are overly rely on china. -- on companies that are overly reliant on china. more on their market outlook next. this is bloomberg. ♪ >> the next time there is a serious selloff, which is not just a three week affair, there are a number of aspects from the behavioral to that the fed is not your friends, and in fact will not come to rescue the market in the same way. >> the ongoing geopolitical concerns investors have around the world, it is s

haidi: amy, you work as a trade negotiator.t does the domestic positioning of each party matter at the moment? we know that the chinese party recovery is not what they are hoping for. the domestic pressure is there. there is always to messed again political pressure for president biden as well. doesn't that give either of the countries more leverage at this point? amy: i think for both countries and in the business communities in both countries it was important to hear secretary yellen and her counterparts, the premier, the vice premier, the minister of finance, the head of the central bank to talk about the u.s. china economic relationship and is a potential for the relationship to continue despite areas where clearly there will be still added restrictions, whether china's export restrictions like we just saw, restrictions on two key components for manufacturing electric vehicles. as well as semiconductors. that is a restriction that secretary yellen said justified the u.s. government seeking to diversify supply chains, so we

i am haidi stroud-watts in sydney. we are counting down to asia's major market opens. >> i am kathleen hays. the top stories this hour, stocks and bonds rise as a slowdown in u.s. inflation bolsters best that the fed is closer to the end of rate hikes. >> nato leaders tell ukraine's president to go down after his angry outburst on the timeline for membership. >> this is the latest sign of the end to beijing's crackdown. >> we do have breaking news. kathleen, crossing the bloomberg. we had that imax is going to take over the chinese subsidiary, seeking to buy out its hong kong trader chinese subsidiary in a deal that is valued at 24 $1 million. they are offering to buy them at a price of 10 hong kong dollars each. we are seeing trading and the hong kong stocks last quoted at nine dollars, 12 hong kong. this was a subsidiary established back in 2011 as a corporate home for imax's and spent -- expansion within china with business accounting for about 24% of sales last year. the first theater open in 2007. we will be watch

haidi: are these numbers highly relevant to investors?we still seeing dislocation still driven by anticipation of future earnings from ai? >> no. in the case of sk hynix, the numbers we have got, there -- they're operating loss narrowed to about 2.8 trillion yuan. we are seeing some sequential improvement and this is primarily driven by increased ship -- shipment volumes. as for sk hynix, it is not all hype. it is now showing up in the company's numbers. the shipments of high-bandwidth memory solutions, especially to nvidia, will pickup in the coming quarters. haidi: what other opportunities do you see as we enter this part of the cycle? who is best placed in the industry? >> in the coming months, we will see the full impact of the high -- these companies have made in the last two quarters. in a major production cycle, it takes five or six months for production cuts to show up and supply numbers. we expect memory supply to tighten significantly in the second half and this will continue into 2024 as well. as far as memory stocks are concer

haidi: we have breaking news out of japan.e adding the labor cash earnings year on year growth of 2.5% for the month of may acceleration faster than economists expected. also in acceleration from the previous month. this is not that surprising given it was reflecting the races agreed in the spring negotiations. it is still higher than economists expected. when you take into account the rising consumer prices across japan and you look at cash earnings, you're on your is a contraction of 1.2%. a smaller contraction than the previous month but still a contraction given inflation continues to rise and is sapping household spending power so we'll cash earnings in japan have stayed in the negative now for a 14th consecutive month. look at household spending numbers. you're on your contraction of 4%. this number is much bigger than economists expected of a contraction around 2.5% for the month of may. this tells you you have inflation rising and that is affecting household spending power. people are not going shopping as much. you ca

haidi: steve matthews there. from one central bank, we change to another big story we are watching in australia. who will replace governor phil lowe? bloomberg news reporting he will not be getting that three year extension that he said he is open to. rumors and speculation have been swirling for weeks and months now. perhaps we will finally get the confirmation today. we know the cabinet meeting is taking place, and following that meeting, treasurer jim chalmers will be delivering that announcement presumably with the choice of his successor. we know among the top candidates from treasury, steven kennedy, the deputy governor michelle bullock seen as a continuity candidate. but it is interesting because so much criticism when it comes to mistakes being made in the rate hike cycle, the guidance that had turned out to be quite erroneous in ways when it comes to growth expectations. but it does look like after so many months of discussion, we may have an answer. we know the markets will want the certainty. kathleen:

haidi:.re watching ahead of the open in hong kong and china property developers are in focus. evergrande reporting losses of $80 billion for the last two years. also, shares of luxury goods makers could see a move, we saw the global peers, particularly lvmh and others sliding on these concerns about the chinese economy and the disappointing data that we had yesterday. that is just about it for "daybreak: asia." we are looking to the start of trading in hong kong, shanghai and shenzhen. this is bloomberg. ♪ it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. we have been able to reach over 100 million people impacted and affected, and at risk of hiv. the rocket fund takes all of the work that we're doing, all over the world, and looks at the most effective ways, to get resources to them, to get services to them. the idea that we have saved five million people's lives, it's overwhelming. it's everyt

haidi: the top stories this hour. china signals policy continuity.y tapping a technocrat as that likely next pboc governor. bond traders are bracing for a wild week. the 10 year treasury could be pushed towards 4%. market watches over and rba pause or hike. tesla tops expectations as price cuts lift second-quarter deliveries to a record, 83% from last year. shery: u.s. futures muted early in the session. we have the fourth of july tuesday. this, after the s&p 500 already rallied to the highest since 2022. we had the rebound in tech stocks. inflation data coming in softer than expected and that led the milestone for apple as well, reaching the $3 trillion mark. we have seen u.s. treasuries a bit mixed. the ten-year yield holding at the 3.84 level. this is we try to digest a softer than expected inflation data and consumption numbers. oil prices at the moment, wti holding around $70 a barrel after three sessions of gains. in the broader context, we have to say that the wti has still seen the first back-to-back quarterly losses for the first time since

haidi: two tantalizing options. one you can potentially see also wanting to give a clean slate by pushing it through. but also, is there a good argument not just for the rba, but a lot of these endgame central banks, to just stay where they are for longer? katrina: exactly. we are in a situation where it looks like inflation is comfortably passed its peak, not just in australia, but globally. now they just need to wait for inflation to continue to head down. but, given we have unknown factors like underlying inflation pressures, those are sticky at it takes time for them to come down, particularly looking at labor markets. they are very tight still, particularly here in australia. we do certainly need to keep rates at more elevated levels. some discussion a starting to come in about, when will rate cuts materialize next year? i think that's too premature. our estimation is that inflation in australia will not return to the central bank target until late 2024 so restrictive rates need to remain for quite some time. s

haidi: it is a big story. the chances of microsoft land and its $69 billion bid for activision has soared. let's bring in ardent legal news reporter for more. can they close the deal before the closure deadline of july 18? the markets are now pricing in an 80% chance it will go through. >> this is a good sign from microsoft, the fact that a federal court has greenlighted it for now. there are a couple of hurdles. the ftc could appeal this decision. it would ask an appeals court to temporarily drop the deal. that is one hurdle. also, the microsoft activision deal has been vetoed bama by u.k. regulator's. they make sure any concerns will be addressed before the july 18 deadline. kathleen: so u.k. regulator's are still opposing the deal. what happens there and how well microsoft work around that? >> today it seemed like the u.k. regulator's were softening their stance because before the ruling came down, they put out an announcement that they would stay litigation while they work out some sort of agreement with m

haidi: welcome to daybreak australia. at about: we are counting down

haidi: rajiv, what do you see as the impact of china?ically, it has been a driving force for the performance of em's. you look at the stock market, the broader economy, trade ties. is that influence waning now? >> china still remains the important part of the emerging markets, close to one third of the market cap. the trade relationship, china remains a key partner. any kind of an impact in terms of a china growth slowdown will impact asean or em exporters. where there is some kind of a cushion, because of a supply chain shift happening and the market share of the developed markets imports moving from china to south asia, and there is coming from the china side. it does not have an impact on em or asean. i think china remains critical for emerging-market countries and asean countries. haidi: when you take a look at the underperformance of southeast asia and the prospects for a turnaround, how much does the sectoral makeup of most of the southeast asian markets actually matter given that we have seen the bulk of higher valuations and the

haidi: quarterly sales for meta beat estimates. shery: we will hear exclusively from the executive vice president of samsung. looking at how u.s. futures are coming online, we have a mixed picture with the s&p 500 being pressured after the fomc decision. we had a slightly higher, but then jay powell started talking about how we would not achieve that 2% goal until 2025 that was perceived as hawkish. at the same time treasury yields across the board, saying that not every meeting would be a decision to height rakes -- hike rates. there was a little bit for everyone involved. we had a mixed picture when it came to the u.s. stock as well. the infotech sector leading declines but same time the communication services sector led to gains. that thanks to better than expected earnings from alphabet pushing that stock higher. looking at alphabet or meta, it's a busy earnings season just this week you're talking about 170 companies on the s&p 500 reporting earnings and you see the huge surge in meta. also we had the search in the nasdaq 100

haidi: -- caroline: the eu.-get that fine because of the ways that it shares data between the u.s. and the u.s. -- the u.k. in the u.s.. the stricter -- the digital markets. the understanding that they get it better themselves, it is relative. you are using data from instagram over to threads so if you are in germany, spain and italy, you will not be up to access threads when it goes live. alix: i thought we should do some instagram videos or a threaded, you can say i can't, stop bugging me. guy: i don't know. the u.k. is no longer part of the eu. so maybe we will be making exciting videos. what we're doing right now is an exciting video. but i take your point. that this could act as a bit of a research and. i don't know how the u.k. will respond to this or how it will work. it will be interesting to see how it goes and how much demand there is out of europe. i'm looking forward to all of the exciting videos we are going to make. alix: i've been trying to get him to do this for a while. stopped for a bit. caroli