let's get vonnie quinn with first word headlines.unny: a bus driver was arrested after a crash in the australian state of new south wales killing 10 people in the hunter wine region north of sydney sunday night. it is believed the bus was carrying wedding guests returning to their accommodations. prime minister anthony albanese tweeted all australians send a sympathy to those affected. the scottish former first minister nicola sturgeon released without charge after being arrested in a party finance investigation. scottish police confirmed she was questioned by detectives for several hours sunday before being released. an inquiry into scottish national party finances is looking at whether donations for the scottish independence campaign were used for other purposes. malaysia is trying to lure investment from microsoft and out of that in a direct -- drive to be a data hub. the prime minister told us his country can be a neutral supply chain base as the region deals with u.s./china tensions. elijah has already attracted investment from

here is vonnie quinn. vonnie: saudi arabia it one million barrels a day cut the lowest in years. move gives to key allies at the opec coalition. russia made no commitment to cut output in the united error had higher production quarter for next year. they're going to maintain existing cuts until the end of 2024. israeli prime minister benjamin netanyahu is accusing iran aligned to the international economic energy agency. this comes after the nuclear watchdog close to investigations into iran's nuclear enrichment program following 10 rounds agreement for the reinstallation -- the iaea's decision to ask except iran's explanation is a stain on the agency's conduct. turkish president erdogan has named his treasury and finance minister. is the most prominent appointment in a cabinet that will place the challenge of the -- restoring investor confidence after elections. he hands the economic reins to an advocate of conventional policies shifting the reins from his unorthodox measures. pakistan's former prime minister imran khan says the establishment wants to stop his party from winning

i am vonnie quinn. this is bloomberg.cials signaled higher chances of an extended rate pause. the governor told us exclusively that further rate hikes would -- would depend on how inflation behaves. >> i think if you look at the economics, they are roughly the same. we have a crisis. we have measures. we have inflation rising because of supply. and subsequently demand slips in. at the same time there are a lot of moving parts and sharks -- and shocks. in a way the central banks are forward-looking. but the crystal ball is still challenging in this moment. central banks have a chance to rio evaluate their measures -- central banks have a chance to reevaluate their measures. it is a conditional response. it depends on incoming data. and we are seeing new shocks hit the economy. there is a degree of uncertainty in terms of how to read the economy. the markets were surprised because they were reading the economy in a certain way and the central banks. in terms of communicating the position central banks have been consistent.

let's get you to vonnie quinn with the first word headlines. vonnie: jp morgan has agreed to pay $290 million to settle a lawsuit alleging it knowingly benefited by sex trafficking from jeffrey epstein. it would settle a class action filed last year by an unnamed epstein victim. the bank will not admit liability. in a statement, jp morgan said its association with epstein was a mistake it now regrets. u.s. secretary of state antony blinken says the trump administration was slow to counter chinese spying overseas. he says the past administration was aware beijing was expanding its intelligence efforts and failed to slow it down. the white house acknowledge the presence of chinese facilities in cuba that could be capable on spying on southeast parts of the u.s. the netherlands a set to be working on legislation that will be used to bar chinese students from university programs teaching sensitive technologies. the proposal would avoid mentioning china directly, but is intended to limit beijing's access to dutch knowledge. the education ministry has

i am vonnie quinn.: staying with the crypto sector a south korean prosecutor spearheading the case against do kwon says the fallen crypto mobile it may spend most of his life behind bars. he could also face a trial and jail time into both korea and the u.s. >> when it comes to bringing justice or recovering damages were victims, it is much more favorable if he is extradited to south korea, and in some ways it is a no-brainer. first of all, most of the basic investigation it done in korea. most of the evidence is in korea. we have also already made a lot of progress in the investigation in korea, and we have already indicted a number of co-conspirators, so i think the most efficient way to get justice is to have the investigation and to the trial take place in south korea. >> there is a theory do kwon will be sent to south korea and face the drought here and then sent back to the u.s. and face trial then. is that a potential theory? >> such a scenario is an option. it is complicated. it is a possibility,

i'm vonnie quinn. bloomberg. ♪ shery: staying with the crypto crackdown, the sec chair explains the industry in this current state could undermine trust in capital markets. i spoke to david westin about the actions against coinbase and binance. >> this is actually a straightforward securities case, but it is in the context of crypto. let me just say that crypto tokens, the investing public leads that same disclosure, full, fair, and truthful disclosure. in the crypto space, it is largely built on a business model that is known compliant with -- non-compliant with the securities laws. there is commingling of the customer funds. it's as if the u.s. stock exchange is operating a headphone fund and trading against our customers -- their customers, or add to it they don't have proper controls to avoid manipulative trading on their platforms. here binanbce had a sister organization called sigmachain. so, absolutely it is straightforward protect the public to the securities law, build confidence and trust. bu

let's get over to vonnie quinn. vonnie: india says a faulty electronic signaling system was the caused of its worst real disaster any three decades. the railways ministry says an investigation into the three train collision continues adding the current focus is restoring services. the search for survivors has ended. the state government says to hundred 75 people were killed with more than 800 injured. president biden has signed legislation averting a u.s. debt default avoiding a catastrophic blow to the economy with a bipartisan victory. with the deal done the u.s. treasury is such unleash a new wave of bond sales. the surge could drain liquidity from the banking sector raising short-term funding rates and tightening the screws on an economy many economists see headed for a recession. bloomberg has been told cia director william burns made a secret visit to beijing last month where he met with chinese intelligence officials. a u.s. official says the spy chief emphasize the importance of maintaining open lines of comm

i'm vonnie quinn. this is bloomberg. paul: still to come, linkedin's first female country had says skill-based holes are a key to gender equality and how lincoln is using ai to skill workers. goldman sachs warns investors about a sharp slowdown in trading revenue as it prepares new layoffs. a closer look at the u.s. banking environment, coming up. this is bloomberg. ♪ paul: former new yorker fed president william dudley says the fed will hit pause or skip in june. bloomberg opinion columnist told us what he expects one or two more hikes later on this year. >> they're going to take a pause because they believe the monetary policy, they want to see the effects of prior actions. but they have characterized it as a skip, because they think they will probably have to do a bit more, and we will probably see that in the summary of economic projections. a pricey, one or two additional rate hikes penciled in for 2023. the economy has not slowed much. if you look at the atlanta fed, to the gdp forecast for the second quarter, it i

i'm vonnie quinn, and this is bloomberg. heidi: coming up, shares of tesla and general motors arising after they announced an ev charging deal. we will get the details and applications later this hour. major u.s.-based announcing a big staffing change. it could continue to face a muted environment for dealmaking. that is next, this is bloomberg. ♪ shery: two of the biggest u.s. banks are shaking up staffing and key divisions with city dismantling as fx strategy team and make of american making changes and its investment banking unit. what is happening at citigroup right now? >> we have reported about two different groups at citigroup getting dismantled. one of them is a group that trades corporate debt from latin america and other one is the citi fx group. they are both getting dismantled for different reasons on the latin corporate debts, it is because of liquidity and a little new issuance. the city fx group is getting pulled apart because the bank has other research teams that do the same job, according to people that we

i'm vonnie quinn and this is bloomberg. yvonne: coming up, u.s.spectors ramping up their audits on indian drugmakers following a string of deadly manufacturing incidents. we get the latest on claims of wide-ranging safety lapses next. this is bloomberg. ♪ ♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ rishaad: just about a minute away from the start of the session looking at some declines. looking at how we see health care companies in india because u.s. inspectors have uncovered wide-ranging lapses in safety protocols and some of india's biggest drugmaker spring this is the top supplier of generic medicines under scrutiny after a spate of deadly manufacturing incidents as u.s. health inspectors work three pandemic era backlog of 1000 audits on drug factories globally. yvonne: spring in her india health care reporter who brought us the story. fascinating reporting from your end, chris. what have inspectors found here since

let's get over to vonnie quinn for a check of the first word headlines. vonnie: india saying a full t electronic signaling system was the cause of its worst real disaster in three decades. the railways ministry says an investigation into the three train collision continues adding the current focus is restoring services. the search for survivors from the train derailment has ended. the state government says 275 people were killed with more than 800 injured. resident biden have signed legislation averting a u.s. debt default avoiding a catastrophic blow to the economy. the u.s. treasury department is said to unleash a wave of new nonsales pair the supply surge could drain liquidity from the banking sector raising short-term funding rates and tightening the screws on an economy many economists see heading for a recession. bloomberg has been told cia director william burns made a secret visit to beijing. the spy chief maintained the importance of maintaining open ties of communication. a source says the trip was purely about intelligence and not diplomacy. glo

i am vonnie quinn. this is bloomberg.to come, a look at esg investing in india and how ai is playing a part. prabhir correa shares his outlook next. this is bloomberg. ♪ mmmm, your morning coffee hot delicious comforting. but by the third or fourth cup, your stomach might not feel so good. if that sounds like you replace your afternoon cup with 5-hour energy. it's perfect for when you're feeling coffeed-out. coffee in the morning... 5-hour energy after. your stomach will thank you. discover 5-hour energy. ♪♪ haslinda: esg investing has become a popular strategy as the world seeks solutions to the climate crisis. yuan -- prabhir correa from waterfield advisors is with us. give us a sense of how committed indian companies are when it comes to meeting esg in their strategy? >> the general outlook is largely positive in india. but there are still issues around awareness around stakeholders which is slowing down the implementation of esg strategies. investment in india [indiscernible] they see the business sense in doing so. o

i am vonnie quinn with the first word headlines. the u.s. central bank should skip raising rates.ed should not be reacting. intimidated will determine whether additional tightening is needed. along this path a project we will see modest growth this year. real gdp coming in a bit below 1%. >> they asked them to provide guidance on how this might work. the block convened earlier discuss how it could challenge the united states. the use of alternative currencies is among prominent talking points. the pentagon will retain starling services in ukraine. it is buying satellite terminals. all of this after russia's invasion. global news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. as we wait for the u.s. debt limit deal to advance in the senate, the treasury castro has bounced back from a 2017 low. economists say most the deal passes, the treasury will likely quickly refill with bond issuance. let's discuss the broader implications of a debt deal with and i. it is great to have you with us. we are just looking at t

i'm vonnie quinn. this is bloomberg.: australian bond yields following what we suffer treasuries and the bank of canada sure -- shocked decision overnight. the three year yield rising to the highest since 2012. the 10-year note also jumping 14 basis points after we saw treasury yields spiking on wednesday. trailing bigger increases after the boc policy rate rise of 25 basis points. we saw yields ending 11 basis points higher on the date. we have been seeing this impact of the crashing yield curve and austria casting doubt on what policymakers have been saying of hopes for no recession. some of the key bond makers -- measures are showing serious concerns we will see recessionary conditions in australia. the key yield curve gap between the 10 year and three year yield for bond futures down 13 basis points this week. the gdp numbers did not help either. lots more to come here on daybreak australia. this is bloomberg. ♪ -diversification, futures, options. fiduciary. leverage. [whispering] -frothy markets. psst. virtual real

i'm vonnie quinn. this is bloomberg.happening with regard to the crypto space. and what is happening with bit: -- with bitcoin. others under bit of pressure because of all the noise coming out of this particular industry group. the fcc getting more aggressive on various exchange members. we've also got south korean authorities saying the fallen crypto mobile has funneled tens of moons of dollars out of an entity linked to his failed lock chain project since his march arrest. prosecutor told us about more of the money trail that they are actually following. >> i think it's safe to say he and his conspirators still have $13 million remaining in their account right now, in addition to the $100 million. to be fair, the crypto doesn't just go straight there. the bitcoin is transferred to another third-party while it and then it goes to a signal account through an otc company and then is cashed out. what i can tell you is that there's currently over $13 million in the account and on top of that, there's about $29 million going

at an vonnie quinn in this is bloomberg. -- i am vonnie quinn in this is bloomberg.is trying to lure silicon valley's biggest names, presenting in -- itself as a neutral ground. we spoke about how they can build investments already secured from the likes of amazon and tesla. >> when it comes to semiconductors and test sites we actually have contributed 2.5% of needs. we signed the semiconductor agreement of supply to the u.s.. but more importantly, i think, going forward, everything that we see today, every product that we see today, the it cars or medical advisors, fark -- pharmaceuticals, the critical component is the chips and we are deeply in the semiconductor industry. haslinda: you have managed to attract the big boys like amazon as well as tesla. are you intending to attract all of the others? >> we are going to attract as many as we can. microsoft, we are in talks with them. we are attract -- never seeing ourselves as a data center hub out here. as in amazon and others as well who have announced they are coming here and we have seen a lot of realignment of su

let's bring the details from vonnie quinn. this would have come as something of a relief if not entirely unexpected after the banking turmoil of the past few months. vonnie: exactly. this is a snapshot of where the bank's balance sheets were at the end of 2022, so devised even before the banking turmoil happened and would not have included those banks that did have the turmoil rippled through them this year. however, we did see the 23 largest banks in the united states face, in the fed's words, the stress test and it was also the most stringent stress test since the financial crisis. commercial real estate dropping by 40% and residential home prices down by 38% along with a surge in dollar, and we saw the banks face it in all cases -- we saw the banks ace it in all cases. that said, some banks' capital buffers were a little bit narrower than others. u.s. bank would have a ratio of about 6.6%. again, you these tests were done before the turmoil. the fed vice chair said this in a statement following the release. this stress test

now let's go to vonnie quinn in new york. vonnie: the sec accused binance and a ceo of mishandling customer funds, misleading investors and regulators, and breaking security rules. it says for years binance flouted basic know your customer rules by letting americans improperly open accounts and trade. the sec also says they misled investors about controls in place to prevent manipulative trading. ecb president christine lagarde says inflation pressures remain powerful and borrowing costs will be raised further to tackle them. become and cement expectations for another interest rate hike at next week's meeting. with full effects of the ecb's military campaign materializing, she reiterated there is no clear evidence underlying inflation has peaked. >> indicators of underlying inflationary pressures remain high. and although some are showing signs of moderation, there is no clear evidence that underlying inflation has peaked. vonnie: a new regulatory plan may require large u.s. banks to boost their capital by an average 20%. sour

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 the primary person responsible for economic policy. the timing is interesting. that is when we will likely get the executive order. not exactly at the same time. one does come first at the same time shery: that is a huge challenge that continues to create tensions in the relation

i'm vonnie quinn and this is bloomberg.l imports hit record highs last month, but the lopsided elation ship is leaving russia with an excess of rupees weird we will have a closer look later on this hour. rishaad: you cute partners putting billions of dollars into adani group. the cio telling us why he is already adding to those that. -- adding to those bets. ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh yvonne: massive rally you are seeing in hong kong this morning. what a good way to wrap up a turbulent week. hstech up 4.5%. hang seng up 3%. we could be avoiding that there market and entering into one by the end of this. shanghai doing quite well with the csi up 1%. msci china we will watch and see how it plays out. property names doing well this morning. still with us as roger b

vonnie quinn joins us with the latest. how big of a reduction of her talking about? it looks to be 125 managing director positions, so in senior positions in previous rounds and some of the investment bank after goldman sachs already cut some and asia, and as j.p. morgan cuts 40 positions for the u.s., having already cut some investment banking jobs in asia, so you can see a familiar pattern here. it is also treacherous out there, because it this is the third round of layoffs for goldman within a year. goldman it has so far announced in 2023 3325 job cuts. city is cutting one -- some of its staff. it is the worst year for banking jobs, which is a long time ago. we saw it intact, you can tell the reasons why. the fed has been raising rates, which is joe the environment for deals, and it is not just coming back? in the second quarter we have j.p. morgan projecting another 15% drop in investment banking revenue, and that is not good for shareholders, banks or the banks themselves. haidi: it feels like yesterday we were seeing the fight for talent, banks are incentivizing

let's bring in bloomberg's kathleen hays for more and also vonnie quinn for this conversation. talk us through the numbers, does this give us an indication we are potentially back to the soft landing hopefulness here? >> it certainly raises that hope. certainly it remains to be seen how the numbers hold up. remember interest rate increases -- that the other side of the coin. take these numbers at face value. if we are heading towards recession, would you see new home sales going up at their fastest pace this year, third month in a row they've been raising, 763,000 is the annualized rate for the latest month. new home sales are a much smaller part of the housing market. there's a shortage of inventory and demand. the other big number -- one of the others is u.s. consumer confidence rising. over seven points to 109.7. what does that mean? it's the highest level since january of 2022. with two main components -- one of the two is the turquoise line. how people look at the economy right now. they call the current conditions. that number rose as well, about six points to 155. nearly

let's get to vonnie quinn. vonnie: jp morgan has agreed to pay $290 million to settle a lawsuit alleging it knowingly benefited from sexual trafficking by client jeffrey epstein. this would settle a class action filed last year by an unnamed victim. jp morgan says the association with epstein is a mistake it now regrets. antony blinken says the trump administration was slow to counter chinese spying overseas. the past administration was aware beijing was expanding intelligence efforts and failed to slow it down. facilities in cuba could be capable of spying on southeast u.s. italy's former prime minister has died. the 86-year-old was one of italy's most influential politicians but his career was played -- plagued by corruption on sex scandals. his business empire spans media, banking, and sports. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. shery: still ahead, the challenges and opportunities in emerging markets. in wy management see

i am vonnie quinn. this is bloomberg.obal says the rpi will state on pause. -- says the rpi will stay on pause. rishaad: dr. philipp hildebrand joins us next. this is bloomberg. ♪ ♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ yvonne: take a look at when it comes to markets today, it is overall risk of. -- off. we take a look at how aussie bonds are doing. we are double digits higher when it comes to yields across the curve. we're watching the five 30's in the u.s. very closely. g10 it rates is very much in focus. we talk about the surprise from the rba and the bank of canada. what does that mean for the fed next week? joining us is philipp hildebrand from blackrock. great to have you back in the region. i have to get your take on how this macro backdrop is shaping up. that expectations -- fed expectations continue to show a little bit more tightening in july. with the fed premature in calling for

i am vonnie quinn and this is bloomberg. shery: we have breaking news out of japan.sh earnings. we are awaiting this because we are getting a reflection of the wage negotiations. economists expected a growth of 1.8% but it is only a growth of 1%. a little improvement from the previous month but considering inflation and your cash earnings with a contraction of much bigger than expected at 3%. this is an economy where core cpi is about the level. the april figure a contraction of 4.4%. much bigger than economists had expected. a bigger contraction than the previous month. laker -- labor cash earnings disappointing that we got the raises agreed in the spring. being pressured by inflation, real cash earnings contracting 3%. paul: apple has unveiled a range of new products at this year's worldwide developers conference and among them the long-awaited mixed reality headset. bloomberg's ed ludlow has the latest on the companies newest product since 2015. >> the headset will cost 3400 $99. and start shipping in early 2024. apple said it would usher in a new era of computing

let's get over to vonnie quinn with the first word headlines. >> u.s. secretary of state antony blinken is said to be visiting china for talks with top officials. sources say the discussions could include the president as the u.s. looks to resume high-level medication. he planned to visit beijing in february but scrapped the trip after ashington identified what was said to be a chinese spy balloon crossing over the u.s.. the price of wheat searched for a 5th street day after disruption of a dam a bed intensified fighting between russia and ukraine. it forced tens of thousands of people from their homes in southern ukraine. it is renewing fears for the safety of the largest nuclear power station. kyiv and moscow blame each other for destroying the dam. >> without a doubt, it should be called the biggest man-made disaster. russia has proven once again that the world, that they act like a terroristic state, and used this disaster, it seems to be an ecological weapon of mass destruction. >> the exteriors and exchange commission has widened crackdown on cryp

let's bring in vonnie quinn for a look at the details. this has come as you know us as something of a relief after the turmoil across the sector we have seen. vonnie: a little relief for sure. they were anticipated to pass and indeed they did all ace the test, the fed's words, and this is a snapshot of the balance sheet on the criteria device before the most recent banking turmoil. there are more regular tory actions later in the summer so a little bit of relief and not too much relief yet. they were the 23 largest banks in the country as well with assets more than $250 billion according to the rules this year which came into effect during president donald trump's tenure as president and other banks will have to submit next year. they did all past and this was under the most stringent of scenarios so u.s. employment rising to 10% in commercial real percent 20 percent and at 30% decline in home prices all with the dollar surging and all banks were able to withstand that. -- the fed further tested the balance sheets a turmoil center of the o

. >> vonnie quinn there.th sherry we do stake -- take stock and at least reflect upon the six months prior. one thing to watch out for in austria late is how the big lenders perform in the second half. bloomberg intelligence says they see strong returns persisting in the second half of the year, better returns and profit versus a year earlier despite growing headwinds in that part of the space when it comes to how mortgages perform in lending competitions, credit costs are normalizing as we see from the rba's and rate hikes as well as a slowdown in low growth as recession list -- risk stolen. -- risks still loom. energy stocks in australia have actually rallied 20% in the second quarter, still a vast outperformance of its peers in the u.s. and asia and they are added to the ai driven momentum, in the sector that we have seen very globally. we have also seen in australian that rotation from financiers into tech firms which has helped information-technology indexes to see their best three months since december

we will bring am vonnie quinn. e been discussing with anna all the risks related to supply chains. what are we seeing from these companies? vonnie: it is the theme today. we heard pete buttigieg talking about supply chains. and companies do not want to be in a position at the written during the pandemic. they do not want supply and demand completely mismatched. they are derisking and moving supply chains away. intel, for example, is committing $4.6 billion to a factory in poland. it is also a green to and large -- to a green enlarging plants in israel. it is being expanded to a $25 billion investment there. the project already had 12,000 employees, so this will be adding to intel's presence in israel. it will also expand in ireland, another $13 billion there to double manufacturing. so investments were already in these countries, but they are getting expanded. micron, even as beijing is cracking down on their infrastructure, it is committing about $600 billion to china. but also india. at least $1 billion to a packa

vonnie quinn joins us with the latest. >> another blow for global employees, this time in the senioranking industry. this after goldman announced the biggest round of layoffs ever, laying off this year more than 3000. goldman, morgan stanley and citi we are looking at over 11,000 layoffs this year and j.p. morgan also announcing this week they are laying off 40, some in the investment banking business, and this on top of some investment banking jobs going away in asia last week as we reported here. some reasons are obvious. dealmaking is not coming back. banks have ramped up the ranks during the pandemic when deals were in a frenzy. valuations were depressed and everything was happening all at once. now the fed has 500 basis points or so of increases and less optimism about where the direction of markets is going and a lot of volatility and the banking crisis did not do anything to take the chill out of the air. so if dealmaking is not coming back in capital markets are not being ramped up by the end of the year, why should banks head onto the staff members? they are getting rid of t