>> approaching 10:00 the morning. 11:00 a.m. in tokyo. this is bloomberg and i'm rishaad with david and yvonne. yvonne: 30 minutes into trade in hong kong and china in asian stocks are headed for a one month low. hong kong reversing lows. u.s. futures rising after strong reports. indonesia returning from a five day break. forecast improvement in the memory chip market following a first-quarter quarter loss with shares of three per send. first republic has disappointing earnings rekindling worries that the banking turmoil is not over. david: one of the top stories is the banking turmoil and ds the bank has told us how bad the situation is. options are scaring the market. that being said 30 minutes into

the session a lot of weakness coming through in the chinese markets. the dynamic that we saw across the region. buying is taking place. any rally we have seen extrapolating has not lasted that long. we are in the thick of earnings season. rishaad: looking at tech, today we got sk hynix but earlier on pretty much bad news. the outlook pretty good as a result, shares up 3.1%. alphabet and microsoft are vying for the ai space. conference calls are all about that. we had google saying they will incorporate into their search microsoft, saying it is much more than that. as a result we saw 8% of

microsoft -- yvonne: this adds to the tech rally in big tech. everyone thought people were pricing in if the fed is ready to cut rates. it's a good time to buy. if you add the ai element that adds another flavor to why we should buy when it comes to tech. earnings look good. david: this is a good reason when you look at u.s. futures against asia catching up to the u.s., we might see catching up in the u.s.. going into the session, we are looking at a story. of earnings coming through. there is roku. meta is coming out. yvonne: those are the big ones in the u.s.. in hong kong, big names as well. the banking side of things as well. rishaad: china merchants bank as well. yvonne: the thing about sk hynix , it's interesting how the shares are reacting.

everyone is looking at a deeper slowdown when it comes to the chip cycle right now. really overlooking that is what people are talking about. this turnaround is coming, the rebound that we heard earlier. david: they have been a standout when you look at sk hynix was them talking about the inventory problems for seven quarters. stephen talked about samsung, then cutting outputs. maybe will get rid of that and markets are looking through that. korea was a star until a few weeks ago in terms of price action. rishaad: let's look at hstech. david: there was a rebound, 1% in six days. six or seven days. yvonne: we are on track for seven. it is ominous the amount of sixes we are talking about in terms of milestones. the csi is on the longest losing

streak in six weeks or so. david: on the currency. yvonne: a lot of ominous signs of what this all means. rishaad: people are grappling right now. those are the growth numbers. we saw other figures. it does not look good, does it? the tech index is down 10 and have percent from the start of this month. yvonne: morgan stanley has interesting data. the u.s. funds are trimming adrs the most and they are talking about the ontario teachers pension plan, the fund. they are retreating from hong kong. they're going to start trading asian equities in toronto. rishaad: can we got the federal reserve data today. tomorrow we've got gdp and core. david: certainly a reminder that

there is a lot of data coming during the next few days. overnight we had things like home sales for example picking up further consumer confidence. we can talk about that later. here is the state of of your markets. bright spots coming through u.s. futures coming through, pushing higher, particularly with nasdaq listing through. and going to this as well, by the end of the week we will be halfway through. imagine earnings season in the s&p 500. how do we play this? do we wait for the season to be over. markets are falling asleep. john woods is here. asian-pacific cio at credit suisse. nice to see you, what do you think has been behind this recent bout of risk aversion? >> markets are focused on the earnings story. possibly overlooking the way of

economic de etc. nation right now in the united states. the s&p is up 6, 7, 8% year to date pricing in a soft landing. a sharp deceleration in cpi, but really that is not our best case at all. i think it is much more likely that we see some kind of european rest session a couple of quarters of negative growth. i do not think the pivot is going to play through until the first quarter of next year. and it seems that core cpi has proven a lot stickier than perhaps originally anticipated. i think at the macro overlay, that is dominating the performance of equities, particularly in china. in our view, china is an onshore story. a retail story driven by money market funds, mutual funds and

we are seeing evidence of that bid in play. away from the onshore domestic story i think that the global appetite for equities is diminishing. looking at a whole range of technical signals which seem to be suggesting a risk off environment. that is one of the reasons why we as a house have been underweight in equities for a number of months essentially anticipating this worrisome backdrop into the second half of the year. yvonne: last year it seems like everyone talked about it's not going to look as bad as 2022. everything was basically coming down. this year, it is fits and starts where it becomes volatile. where people start to think that things are rallying and turning a corner and then we have doubts. whether it is china, the fed and the like. david: geopolitics. >> the fed has been consistent in suggesting that they will keep rates higher for longer. the markets are not falling into

that story. the markets always anticipating something of a pitted and if you look at the futures, which i did before i came out the market is hoping for something of a cut in july. in our minds that is too soon given where core is right now this very sticky effect of rising wages on services. rishaad: if they raised right side and then cut them in july that would look like a policy mistake. i want to get a sense of you look at the sectors and banks here as well. how the way the loans are being judiciously given out. a lot of regional banks under pressure. we been hearing from first republic and others. the big ones benefit from what has been going on in the deposit outflows. >> well absolutely and there's probably another dynamic at work in that in many respects the fed has been battling against

reasonably robust household balance sheets, reasonably robust balance sheets. the low unemployment rate, they have been raising rates aggressively, if not one of the sharpest tightening cycles i have seen in 20 or 30 years. and the interest rates have yet to have a meaningful effect. we will have quarterly one gdp as you suggested tomorrow. i suspect we will see q1 coming in at 1.9%. that is pretty high. to the point out wanted to make was that the credit tightening actually will improve the efficacy. higher rates. this is likely to bite a little more meaningfully into the second half of the year. essentially supercharging the deceleration of the monetary policy. and getting unemployment up to a level and inflation down to a level where his consistent with

interest rates. david: a lot of people seem to forget the fed only started hiking 13, 14 months ago. we are starting to see the effects of tightening so who knows what we will see. you'll alluded to the fact that the market might look expensive given the slowdown ahead. what is your sense about how expensive the market is compared to best case scenarios related. >> i'm looking at various earnings beats from the earnings season and you guys are discussing it, particularly the banking and tech sector. i'm not seeing that play through in a meaningful way. it seems like the macro overlay is overwhelming the performance and in instances of earnings, the same as the case in china. we are looking at earnings growth of 19% this year.

the market has ignored that. it is more focused on geopolitical risk. i think that this performance of the s&p year to date is quite optimistic. the idea that we will have a pivot and inflation falling to a target, a 2% target. i don't think that's going to happen. the market is too optimistic and i anticipate a correction and adjustment in that to reflect market conditions. rishaad: shake around. john is staying with us. he did not say yes to that question. let's have a look at the first word news headlines. president biden announcing he will be seeking reelection in 2024 readying a campaign against a republican in a yield dominated by predecessors. he is the oldest president but he is imploring voters to finish the job.

his quest for a second term continues with a recession looming. house speaker kevin mccarthy refused to say whether he secured support from reluctant republicans to pass the debt bill. we spoke hours before a house committee was scheduled to lineup legislation is the bill falls flat. it could delay the start of any talks over raising the debt ceiling. africa, new fighting in sudan testing the for the tent that is nationwide cease-fire since the conflict earlier this month. smoke was rising from the presidential palace with violence reported in nearby cities. this was coming hours after leaders of sudan's army and their rival agreed to a 72 hour humanitarian truce. tokyo-based i space lost contact with the spacecraft was aiming to land on the moon. the chief executive is assuming that the landing field. the company says there is a high probability that the lander made

a hard landing on the moon. aboard a spacex falcon 9 rocket, it was the first commercial attempt to place a lander on the moon. that is your first word news. yvonne: still ahead on bloomberg markets: asia, more on the fallout for i space and the water business and commercial space flight and what the locations are. david: president biden launches his bid for a second term in office as the country stands on the brink of a possible recession. we will look at why the economy may actually be his biggest selling point. details of that story just ahead. you are watching bloomberg.

♪ yvonne: take a look at markets

right now. hstech negative, flat for the benchmark. hstech doing better than a few minutes ago or so. let's get back to data on the u.s.. interesting here if we take a look at what we are seeing, durable goods, jobless claims, mortgage applications and you can square that with the china eco-survey. david: we released that survey and it is not surprising that the median estimate from private economists was bumped up. 5.3 or 5.6% for the full year, which again -- rishaad: on other two years is in it as well? 4.8% in 2025. david: yes, yes. 2020 five really, the economists will be the first to tell you they have no idea what is going to go on next year. helen chow earlier on, 6.3% in

china. yvonne: the consumption story has been long talked about. why we are seeing a resurgence in growth. what people are not talking about she says is the fact that the investment side, things are picking up, given that she thinks the new credit cycle has started with the credit numbers in march as well. rishaad: how does it affect investments and what you do their money? john is still with us. the cfo at credit suisse. that is the question. john: there is a compelling response, a single word is income. rishaad: investors, equities, we've seen a lot of outflows, haven't we? john: a curve is inserted and it is looking steep from a short-term money market and yield perspective. frankly, if you can invest and take advantage of yields in

anywhere between three and 5% of the short end and even moving from the three to five-year bucket, picking up you had seen these yields for five years so we've been encouraging clients to explore. putting equity to one side for the time being, but right now, the slope of the curve and the yield levels are compelling. as i say, i have not seen for many years -- if like me you believe the fed will eventually cut, the yield will eventually fall, then inflation will eventually diminish. they are locking in these yields at current levels. to me, that makes a lot of sense for investors. yvonne: what about credit? john: they total return for the investment grade credit space, a duration of three to five years, five to 6% over the next 12 months. and that is an extremely attractive return.

particularly as we see growth decelerating at a global level. so for me, high-quality credit with a reasonably short duration makes a lot of sense. david: what about non-dollar debt securities? i mean, do you get the same proposition on the table? john: that is driven by a dollars story and inflation story. what we have seen in asia is central banks very keen to actually ease off the hiking pedal and move to a neutral stance, which is reasonably positive for the currency bond market. it essentially ensures that yields remain stable. we have a strong dollar. from an investor perspective. my sense is wants that pitted becomes a little closer just -- that pivot comes closer, we see it in the first quarter but the

market could price that in at any point in the second half of the year. we would see the dollar start to weaken. local currencies around the asia region could start to strengthen. at that point, the local currency market starts to look like a great investment strategy. rishaad: you look at the earnings season thus far in equities and has it changed your view at all of investing in the sectors? if you are going to be in equities? john: it has not change my mind substantially. we're seeing an earnings contraction in the united states. we are still seeing substantial in meaningful earnings expansion. for example, in china. if i was to invest in equities, i would prefer for example tourism sector in china. we potentially have tens of millions of outbound tourists likely to visit the tourist

destinations particularly in asia which we think will generate attractive opportunities. we are focused on the tech space, which we think is undervalued and holds opportunity. and renewable energy space. we think in china it is likely to continue to outperform and benefit from the policy support that the government has mentioned. yvonne: what would it take to get back into risky assets? what needs to happen for things to flip? john: economic direction. right now, i think the -- we are in that difficult soft landing camp and we all know that soft landings can rapidly and easily turn into hard landings. the market is priced almost for perfection i feel when it comes to the soft landing pitted inflation -- pit it inflation trifecta. there's an awful lot that can go wrong. once we get a further sense that

the economic trajectory is perhaps -- has a high conviction, that will feed through to corporate earnings and feedthrough subsequently to greater transparency and clarity on the market. david: and i mean when we look at china for example we started out the year with consensus forecast of 5% growth. to your point, clarity on the economy, would 7% growth handle on china -- we are not are away from that. with that do it for you? you mentioned 19% eps growth, people seem to be ignoring that point. john: from a foreign investor perspective, china risk is overwhelmed by geopolitics. there is a greater fear of the political dynamics, particularly between the u.s. and china which is overwhelming any positive news from the earnings side. we are forecasting six plus percent growth for the second quarter of this year. i think that trajectory will

moderate into the second half of the year. it needs to do, otherwise the china growth story would probably accelerate to a point where it becomes worrisome and imbalanced. for us, china is the only bright spot in a bleak environment and one of the reasons we are focusing. yvonne: john woods, asian-pacific cio at credit suisse joining us in hong kong. plenty more ahead, this is bloomberg. ♪

yvonne: a chip foundry backed by china's smic is set to raise millions. they are manufacturing

electronics and selling shares on shanghai's nasdaq star board. the listing will give the company a market value of more than five and a half billion dollars. first republic bank is exploring domestic bids to $100 billion of assets as the lender attempts to rescue itself from industry turmoil. the sales include long dated mortgages and securities and are aimed at reducing the mismatch between the banks assets and liabilities. buyers could receive incentives to buy the assets above their market value. sk hynix has posted a second straight quarterly loss after revenue plummeted at 58 percent, underscoring the death of the downturn phase of the global tech industry. apple reported an operating loss of tuna half billion dollars in the three months ending in march. they're jumping in the second quarter rebound. rishaad: a quick look at movers.

looking at what is going on with the top, honda and tsmc. checking in on those. honda collaborating with tsmc on the procurement of semi conductors according to the nikkei, stable supply. sk hynix has heard about what is going on there. we've got lg with earnings later today. and here we go, byd. volkswagen has been overtaken is the biggest automobile brand or best selling car brand, dethroning volkswagen. david: just ahead, u.s. president biden officially kicking off his reelection bid. we focus in on the economy next. this is bloomberg. ♪

now we have just got to keep it going, finish the job. remember who we are.

we are the united states of america. there is nothing beyond our capacity, nothing, if we work together. david: there we go and here we are. u.s. president joe biden in washington, d.c. and president biden is beginning his quest for reelection as the u.s. economy is teetering on the brink of a recession. voters obviously feeling the pinch off inflation. for more on this, let's bring in our bloomberg editor matt winkler. welcome to town. nice to see you. you have written a piece that there is a big gap between perception and what is happening on the ground in the economy, which is doing quite well. >> yes, in fact if you look at the first 26 months of the biden presidency, which is where we are, it is one of the best economies, may be the best of the century, and may be the best

economy going all the way back to lyndon johnson, which is for many people around here were born. rishaad: he didn't run for a second term, did he? >> he did not, but there was something called the vietnam war that got in the way of his plans , perhaps, for reelection. biden is presiding over an economy that is -- has created more manufacturing jobs than any president in a century. if you look at the biden economy, it has created six times as many jobs. as the last three republican presidents combined. the gdp growth in the u.s. under biden averaging around 3% per year is three times what it was under president trump. that is just for starters, but

there are lots of other things. there has been record profits over the past 2.5 years, there has been still very low debt ratios for companies, and by the way, these are measures of relative prosperity, and if you take all of these measures of relative prosperity, the u.s. is doing as well as it has done at any time, so all of this perception about recession, which we are still waiting for -- remember people were predicting a recession a year ago at this time, and we keep talking about recession, but it has not happened yet. and there are still plenty of economic indicators that say, we are going to have to wait a while longer at least, and may be when it comes, it will be the most widely predicted recession we have ever had, and it may not be as dire or as abysmal as lots

of people have been saying. yvonne: the president talking about wanting to get the job done. i guess you could say the same when it comes to inflation, which remains sticky in the u.s. what is he doing right when it comes to bringing down inflation? matt: the president does not have a lot to do with inflation per se. that is the responsibility of the federal reserve and as far as that goes, we have seen more consecutive monthly declines in the consumer price index than we ever have before. so inflation in the u.s. was at 9.1% in its high last year and it is now below 5% and you look at the 60 economists we surveyed at bloomberg. they say it will get below 4% by the end of the year, so inflation is clearly slowing. it is slowing dramatically. if you look at the price of eggs index, it is down more than 70%

since january. if you look at the price of gasoline at the pump, it is down from an average of five dollars a gallon to $3.40. that is a big decline, so inflation is clearly moderating. so all of the vital signs in the economy are going in the right direction with biden planning to run for a second term. rishaad: he said he wants to now finish the job, but what has he actually started? critics would say he has spent huge amounts of money with programs here, hundreds of billions of dollars, and on top of that you can look at the international arena where china is seemingly challenging the u.s. everywhere right now. we had the dibacco in afghanistan when u.s. troops pulled out all of a sudden. -- debacle in afghanistan when

u.s. troops pulled out all of a sudden. matt: finishing off the job from his perspective means -- he wants to reclaim the soul of america, and he uses those words. what that means is he wants to bring the u.s. back to a balance where there is something close to normal because the years that preceded the biden presidency were anything but normal, and we know that because just before wyden was inaugurated, there was an insurrection at the capital -- biden was inaugurated, there was an insurrection at the capital. it is polarized but less polarized. if you look at where voters are, the overwhelming majority is actually much less polarized than you would think, but because we have something called gerrymandering, which is fixing the way people vote and suppressing the vote, it looks a lot more polarized than it actually is.

the second thing about biden is that foreign policy, he inherited a policy with respect to afghanistan not of his making. it was of trump's making and the exit was problematic, to say the least, and somewhat chaotic. having said that, we evacuated more people in magnitude than we did out of vietnam, so the comparison there is not apt. the second thing is he has unified nato in a way that it has not been unified in decades. he has brought sweden and finland into nato, which was unthinkable two years ago, so nato is more unified than it has ever been, and that is because of its reaction or europe's reaction to putin's invasion of ukraine. so biden has done a good job there in foreign policy. it is not going to get resolved anytime soon, but none of us

predicted that ukraine would be where it is today. everybody including us, the pundits and the press, said it was going to be a walkover for putin in a matter of days and we were all wrong. so that is a victory for biden. rishaad: and february 23 of 2022, people did not think there would be. thank you, matt winkler. a look at the first word news. the federal reserve closing a loophole over federal funds to take advantage of the reversal of repo facilities, raising the access to the rrp. since last june, $2 trillion have been passed through the facility, which offers a steady rate, better than other alternatives like treasury bills. olaf scholz has invited chinese premier li qiang for talks in

berlin in june. it is his latest bid to ease tensions between europe and beijing. he will enlist china as a key part on promoting global peace and tackling climate. we are told he will also set out redlines for taiwan. binance.com ending a deal to buy crypto voyager after what it calls and uncertain u.s. regulatory climate. this comes less than a week after regulators such to halt the deal in court. and that is a look at the first word headlines. yvonne: let's look ahead to the less -- two this week because because what wait up -- kazuo ueda will lead his first boj meeting. kathleen hays has the latest on his life. >> he was born in a small town

west of tokyo, the capital city where his family eventually moved. his uncle says he often came back to visit, riding the train all by himself at the age of 10. >> he was a very independent kid. he would listen to english broadcasts on a portable radio. we did not understand what he was listening to. his smartness stood out in the family. kathleen: eda's career as a lifelong academic and a central bank governor got off to an auspicious start as he earned his phd in economics at m.i.t. a former colleague says he will use his skill at communicating complicated aspects of unconventional monetary policy clearly to investors in a way that will maintain market stability. >> using a framework of economics would be his tools to

commit the communication to the market participants, both domestic and global. kathleen: former fed vice chair ellen blinder was a former academic became a top policymaker. he says any changes now at the boj will be gradually. >> you do not dismantle the whole thing right away. you move out slowly and with a lot of thought about what do you move out of first, second, third, and fourth. kathleen: ueda has helped guide boj policy in the past. he made his mark in 2002 when as a member of the boj policy board, he voted against a majority decision to raise rates, saying he needed to see more data. now, he is facing the real possibility that in the near future, japanese inflation will reach 2% in a sustainable matter

that boj policy decisions require and bracing for the large adjustments the economy and markets will have to make and the turbulence that could result. >> i think we have to make an appropriate judgment in advance so that such a thing does not happen. kathleen: investors in japan and around the world are waiting to see if ueda can thread the policy needle starting this week as he begins his first policy meeting as boj governor. kathleen hays, bloomberg, tokyo. rishaad: and we can get over to tokyo itself and get over to kathleen hays. that landmark boj meeting beginning on thursday. what are you looking at? kathleen: look at the fact that there seems to have been a strong messaging from governor ueda. certainly his two testimonies this week in parliament where he is talking about inflation

coming down over the course of the year from 3% plus to 2% and below. this is what we had heard from governor kuroda and the previous team at the boj, which contains many of the same members now. he also talked about tightening, if the boj took the move now, could have negative consequences on the economy. so we sat down with a former vice of financial affairs back towards the end of the great financial crisis and he thinks it has a lot to do with making sure inflation does not lose momentum. >> he mentioned that condition is a strong forecast of inflation, which is closing to 2% with high probability. it is a hard year ahead. that seems to mean that he becomes more cautious about

tweaking the current policy, and fastening to the course. the conversation is still underway. before it was 3.7 percent, which was quite high. not all of the negotiations were for the medium and small sized companies. that is quite important for a sustainable inflation, so i guess maybe he wants to keep the current momentum. so he is very careful to tweak the ycc. >> if we get this hawkish, no change in ycc, watching inflation closely, cannot be sure what he will do for at least a year and a half, does that mean no change in this

comfortable spot we see the yen exchange rate right now? >> because the monetary policy of japan is not a single factor of the policy rate, rather i think the financial market stress or the tightening of the monetary policy outside of japan. and may be a possible recession of the global economy. there could be other important factors for the exchange rate. kathleen: when we look at the ycc, yield curve control, and sooner or later, it will be changed presumably. that has sort of been the signal. right now though, you have the yen in the range that is not too weak or strong. bond markets are pretty calm, not pushing too hard against the upper range of the ycc.

are these the kind of conditions that would be very good time to start making any kind of changes that are going to need to be made in the ycc? >> yes, so far tweaking over the ycc, currently the market rate is somehow below the upper bound of the ycc. so there is no strong pressure and you look at the decision that has already been corrected in some sense, so that is timing. but another important factor is to change the ycc should not send the wrong message to the market. this is defective tightening. -- de facto tightening. it is a strong sign of inflation at 2%, easing conditions to

tweak the ycc. kathleen: what do you think is the biggest risk for the bank of japan policy and the impact on the markets? what is the theme you are waiting to see besides what the boj does but also anything that could have an impact on the economy and inflation, and therefore an impact on boj policy in the future and the exchange rate of the dollar-yen? >> how do we forecast price development? if the ecb fails, so that is why i think japan inflation could be much stronger than their projection. it is very much dependent on the data. the timing to lifting the ycc or even the timing to lift from the current data could come earlier

than the market or even the market and the boj expected. so anyways, very precisely, it is a data development and we are keeping good communication with the market. this is critically important. kathleen: it is going to be interesting to hear from governor ueda after the policy decision, what kind of questions will be asked about the difference between tweaking ycc, moving the negative rate to positive, all of the questions he will be asked. it'll give us a better sense of what he is seeing now and down the road. david: kathleen hays live for us out of tokyo, leading our conversation of the boj. dollar-yen very quickly, a little bit more risk appetite. the window over these last few hours with the msci china catching a bid, and the nasdaq futures with an earnings story.

iron ore briefly below $100, but it is slightly above that level as we speak. things are slightly more stable as we speak here. plenty more ahead. this is bloomberg. ♪

yvonne: we are still waiting for these ispace shares to trade in

tokyo today after what was a hopeful lunar mission that actually failed overnight. let's bring in bruce einhorn who has been following the ispace landing for us. what happened? >> we do not know what happened yet. the company has just said there was a high probability that there was a hard landing on the moon, in other words a crash. what caused it will be something that they will need to investigate for a while going forward. as far as the trading goes, as you pointed out, there is no exchange trading happen at the moment. off market trading is down 20% at the moment. rishaad: it comes against the backdrop of other failures in the space arena. we had the mars rover in china that had a bad rap, and also elon musk's latest rocket exploded. bruce: in both of those cases,

you could argue that it is not as bad as the ispace location -- situation. with the chinese space rover, just landing on mars is incredibly difficult, so the fact they were able to land it was impressive. so i do not think it is fair to the chinese to say that that was a flop. they did a pretty good job. as far as spacex and the starship, elon musk is argued that their goal was just to get beyond the launchpad and make it back. of course, things did not work out after that, so there will be an investigation going forward. yvonne: what do we know about ispace and what is next? there was hope this would become the first commercial moon landing and it would lead to a lunar economy. where are we on that now? bruce: the ceo, takeshi hakamada, had a press conference this morning, put on a brave face saying that we got a lot of data out of this and will be

useful for our next mission, so they do have more missions planned, but most likely they will not be the first to have a landing on the moon because two u.s. companies both have plans to send missions to them in this year, so if either one of them makes it successfully, than those would be the first private sector backed missions to land on the moon. up until now, it has all been national space agencies like nasa. rishaad: bruce einhorn, taking a look at the hard landing. a lot more to come here on bloomberg. ♪ 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

david: a couple of movers to talk about here. byd based on the latest information out of the industry has now taken over -- overtaken volkswagen in terms of deliveries in china. there are the best selling brand in number of vehicles sold. 2.5%, that is a stakeholders story. sk hynix to the upside around 3%. in terms of movers, we are almost perfectly split between 1000 200 stocks, 600 up, 600 down. yvonne: certainly seeing a

change with tencent being the leading outperformer in the asia space following the likes of me ituan. $100 billion have been wiped out this month alone on the golden dragon index, but a lot of earnings in focus still. rishaad: we are looking at these are in or miners keeping iron or below $100 since december. we have a frayed recovery from china's commodities demand. we have data at the moment which suggests otherwise about people upgrading their growth forecast. yvonne: aussie 10 year yields down some 20% on that softer cpi print. this is bloomberg. ♪

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haslinda: it is almost 11:00

a.m. in singapore and shanghai. welcome to "bloomberg markets: asia." i am haslinda amin. rishaad: i am rishaad salamat. you have asian stocks heading for a one-month low as banking jitters resurface. china had a $46 billion wipeout in the strong tech earnings boosting u.s. futures. and questions raised by the adani company remain with the billionaire's brother is in focus. plus, we have crypto talk. joining us will be circle ceo jeremy allaire and tron founder justin sun. haslinda: asia trading at the lowest level in a month, of course concerns about first republic looking for asset sales bid also disappointing earnings

from first republic, prominent concerns about the banking sector. we are pretty much right across the board in asia. the nikkei trending lower. we are keeping a watch on the csi 300 index the negative territory. bear in mind the nasdaq dragon index down 10% this month alone, eradicating about $100 billion in market value. the fx space, the dollar was higher i have a percent yesterday and today, pretty much stable,. we have the chinese renminbi up. keep a watch on the yen as we count down to the boj meeting on friday, the first meeting for governor ueda. in the commodities space, iron ore front and center. in the bond market, we are seeing yields falling as well as new zealand. how is it looking in thailand,

rish? rishaad: looking at the opening in bangkok, it looks like a move upside. they are just seeing a bit of a move downside for the dollar against the currency. the nifty pretty much flat. we are looking at a lot of stories with regards to india today. we have got 3.9 billion dollars worth of treasury bills being auctioned by the rbi. we have earnings coming through from the likes of tsuzuki and spi life. jakarta moving on through again, and it is holidays for the eve coming to an end. let's check with what has been going on in terms of banking. it has been about ubs and the chief executive of the swiss bank said that inflows are a recent sign of confidence from

the bank's clients ahead of its takeover of's credit suisse. sergio ermotti sat down with manus cranny for the first time since that deal was revealed. >> at times of distress in the market, generally the first quarter was challenging. we still serve clients looking at ubs as a safe haven. inflows were coming in from all regions and from different sources. and in that sense, we are very pleased that particularly after the announcement of the transaction of the acquisition of credit suisse, we still saw inflows coming into our bank, so it is a sign of confidence of our clients. haslinda: let's get more on market reaction and bring in mliv strategist mark cranfield. we have sergio ermotti expressing confidence, but on the other hand, we have first republic talking about an asset sale again. mark: investors in europe are

relieved that credit suisse situation has resolved quickly, but you can see how damaging it was to financial markets, particularly in march. it looks as though there are still more names to come out that were missed by the regulators in the same way that svb was earlier in the year. you can still see the way that the banks are using the federal reserve for surges is pretty high. it has not gotten down too far, so there are concerns out there. if you look at the way the overall stock market in america is performing, although we had a rally earlier today because microsoft and alphabet numbers, it is not committing to the context of the broader market in the past couple of weeks and treasury gains dropped in the past few sectors. haslinda: also nervousness about credit tightening and at a time the fed insists that wants to continue tightening. mark: that is a difficult want

to put a timeline on, but there are several experienced people is in the market warning us the situation will deteriorate over the summer and play out over the end of the year, but if that takes hold, it is hard for the central bank to push back against it and it will affect the labor situation, consumer spending, and a whole range of factors which are outside the fed's control. they may talk about it to some extent in the may meeting. they will probably raise rates but it will be one of the reasons why they say they are likely to go on hold after that because there are a whole number of issues we need to see more information about. so they will probably hold after that. rishaad: mark, you have been writing about china tech and how stocks are approaching a line in the sand. drew that line and why? -- who drew that line and why? mark: that is a point of trading since march, and the recovery since then has not been

convincing. the hang seng tech index has been a bounce that people who watch charts and things like that would say it has put too strong of a tour. and recently have seen the political situation between the u.s. and china has gotten worse. the united states is potentially going to put more measures to make it tougher for people to invest money into china, maybe also restrictions on the chip sector as well. and we are coming up towards a big holiday in china at the end of the month this week. china markets will be closed for a few days, momentum has been fading, and you put that altogether and there were individual stock numbers as well, so lots of reasons for people to take money off the table. in a situation like this, they can spiral quickly. as we are getting close to that so-called line in the sand, it is the trigger that people would use to sell more. when we see that line break, it might just accelerates the selling. what has been disappointing is

that although the bank and tech index has been active this week, the total volumes have not been impressive. you would expect i now to see a huge volume day which would look like a capitulation that the last sellers have already gotten out. that has not happened, so that is another negative sign for markets. haslinda: chinese bonds also getting sold off, foreign funds selling the most on record. mark cranfield, we thank you for that. more now on the big tech earnings. both alphabet and microsoft exceeding expectations. we focus now switching on meta when su keenan joins us. let's start with alphabets paid a big beat in earnings but a disappointment on ai. su: the ceo talked about the excitement and investment being put into ai, but also said it will be more like a shift for the core google search business

and there was a lack of specificity. the good news was the beat and the stock was way up, helping lead the green you see on the screen, but the ceo talked about uncertainty in the future, continuing challenges with the macroeconomic environment, and the lack of specificity on ai. we did see those gains in alphabet pare.let's talk about s call. the cfo said -- the big story was the sales excluding the partner payoffs that came in at just over $58 billion. that was a beat. the cloud unit reached profitability for the first time, a huge element there. they reported a profit of $191 million and a report said that youtube, which has been losing money for three straight quarters, it is stabilizing. again, they talked about excitement and a combination of

the ai labs, deep grand, but did not give a lot of visibility there for a talk about challenging markets and the outlook as uncertain. they expect the impact of currency headwinds to decrease in the current period. revenue growth seems to be similar for the first quarter, so it is not an outlook in terms of financial guidance. our colleague ed ludlow says it is a window into what alphabet is seeing, and they are seeing a bit of uncertainty. rishaad: it was about cloud and cloud demand. a big theme for microsoft. we look at their ai forecast and it is much stronger. google executives just said it will be incorporated gradually into search, and essentially microsoft said it is part of a much more dramatic shift. you can see why those discrepancies in how high the shares went between microsoft and alphabet.

su: the shares soared about 8%, a big move as they talked about ai. they want to be a leader in this and they gave this strong forecast, much stronger than expected. they see fiscal fourth-quarter revenue of $54.8 billion to $55.8 billion, beating estimates, but they have talked about the commitment to being in the lead to ai, and that is what has caught investors' attention. a clear contrast to alphabet, which again was bid for the second quarter in a row. microsoft has spent billions of dollars on open ai, the company behind chatgpt. you can see the rollout of announced plans to deploy the -- employed the tech across various products, so again, that was very big takeaway. we also had the cloud computing beat in a big way.

they are reporting the growth has continued even as customers scale back spending and microsoft has been signaling going into this earnings period that there has been a continued slow down, and that has dented growth. third quarter profit sales beat, again fueled by the resilient cloud customers. meta is up on wednesday and there will be a lot of focus on the ads, and what does mark zuckerberg have to say on the ad environment. that could be a big mover either way for medical's stock. -- meta's stock. rishaad: let's have a look at the first word news headlines. president biden formally announcing he will be seeking reelection in 2024, running a campaign against a republican field dominated by his predecessor. biden is already 80, but he has

implored to voters to finish the job. this begins as consumers are battling sticky inflation and a potential recession looming. u.s. house speaker kevin mccarthy is refusing to say whether he has secured enough support from reluctant republicans to pass the debt bill. speaking hours before the key house committee was scheduled to meet to line up the legislation for wednesday's votes. if the bill falls flat, it could delay the start of any talks over raising the debt ceiling. the federal reserve is proposing a loophole -- closing a loophole that certain funds have used to take advantage of the reverse repo facility. they will exclude funds organized for the exclusive use of operating facilitation's. $2 trillion have moved through the facility as it is often better than alternatives such as treasury bills. renewed fighting in sudan tests a fourth attempt at a cease-fire

since the conflict flared up earlier this month. violence reported in nearby cities around the capital. the clashes coming hours after the leaders of sudan's army under the paramilitary group agreed to a 72 hour humanitarian truce. that is a look at the first word headlines. haslinda: still ahead this hour, a double crypto treat. tron founder justin sun will talk to us exclusively about his firm's stablecoin capitalization and his connection with true usd. but first, more with circle's ceo, who says it is critical for a safe upgrading of digital dollars. keep it here with us. this is bloomberg. ♪ 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.

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rishaad: a look at some of these cryptocurrency assets. seeing positive tech earnings helping these particular tokens, seeing at the moment bitcoin up to $28,391. there you go. what is going on exactly with regards to the u.s. in particular? haslinda: for regulations, u.s. lawmakers still at odds when it comes to stablecoin's position as a means of payment and whether the ecosystem needs supporting legislation. circle is the issuer of the usd coin and was one of the expert witnesses at a recent u.s. house financial services hearing. joining us exclusively now is circle cofounder, chairman, and ceo jeremy allaire. good to have you with us.

we know it is a tougher gift story environment in the u.s. -- tough regulatory environment in the u.s. jeremy: it is a critical moment in the u.s., and it is a moment for congress to step up. we have a situation right now where there are questions being raised about the competitiveness of the u.s. dollar. thre are de-dollarization efforts underway in the world and we have a technical resolution -- revolution taking place. we have progress in hong kong, singapore, in the middle east, and other markets, and the u.s. is behind right now. the dollar is facing more severe threats than it ever has, so our view is that it is vital that congress act, that it acts to pass legislation that can help the dollar remain competitive in this age of internet-based

currencies. that is what i think these draft bills are doing that have been discussed in the house in recent days. haslinda: you said last year that circle was close to applying to operate like a bank in the u.s. is that still part of the plan or are tougher regulations making it almost impossible? jeremy: we have long held that the right architecture for money on the internet would be the basic layer of a digital dollar to be as close to as safe as possible. so something that can be held with the central bank or in short duration t-bills and other things. if you have that, you have a way to regulate that already federal level, but that would be the ideal framework for an economy like circle and a digital frenzy like usd -- digital currency like u afterwardss, it will be

that congress needs to build the framework for thisdc. alongside other major jurisdictions in the world that have created these jurisdictions and how fiat money will work on the internet. rishaad: give us the experience of u.s. banks with higher interest rates and other things going on. how are you feeling the attitude towards crypto? is it changing in any way in your view? jeremy: obviously we have seen a huge amount of risk off in a lot of different markets. interestingly, we have seen certain digital commodity assets like bitcoin and ethereum have actually outperformed most other asset classes this year. there is a lot embedded in that. there are regulatory dimensions, geopolitical dimensions, macroeconomic dimensions, so there is a lot, but our view is that worldwide, this has become

a big enough phenomenon and the risks are material enough that governments are taking action. it is appropriate they are taking action. the right way out is to thoughtfully construct policies that allows this technology to grow and flourish. it looks like we are just getting down to business on that in the u.s. congress. rishaad: what kind of regulation is on the table? because it could become too restrictive. one of the whole points is for there to be very little in terms of regulation at the outset of the whole crypto project. jeremy: there are a lot of different views on how to think about all of this. our view from day one has been we need to work constructively with governments, with policymakers. the technical innovation of blockchain's will be a major new part of the internet, and we

need to have guardrails around that. that is why we have such to be a highly regulated firm for a long time. in terms of what is needed here, very specific what we are talking about is stablecoin regulation, and crypto markets regulation. how are the assets and these markets regulated? these are the pillars that are needed and what you have seen in other jurisdictions and what we will start seeing here in congress. haslinda: usdc's market volume -- value falling fast. i am wondering why it is still sinking. jeremy: there are a few things happening. one is that we are seeing a huge amount of concern globally about the u.s. banking system. we are seeing concern about the regulatory environment in the u.s., so there is overall an

effort to de-risk out of the u.s. this is a huge challenge for the united states to face, which is that companies are moving offshore. the very thing that the government wants to protect against, which is offshore opaque actors that are not accountable to any regulation. those are strengthening in the face of the lack of clarity in the united states, so those are the issues that are driving a lot of this today. haslinda: and true usd, which is a rival of stablecoin, getting used extensively from norway and other places. why do you think that is so? jeremy: i think it is quite small comparatively speaking, but there is a promotion for free trading or something with it that might be driving some of the volume. rishaad: thank you so much for your time. that is the circle ceo, jeremy allaire, joining us.

later we will be talking with justin sun, who runs one of the biggest blockchain ecosystems. we will be asking him about that another prospects coming up in about 10 minutes. this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates, exemption certificates or filing returns. avalarahhh ahhh ahhh ahhh

top ipo this year. it is selling a nearly 1.7 billion shares at 1.5 yuan apiece. listing will give the company a market value of more than $5.5

billion. first republic bank is exploring divesting 52 $100 billion worth of assets following last month's industries turmoil. it includes securities arraigned at a mismatch between the bank's liabilities. potential buyers can also leave incentives to receive assets above their market value. sk hynix posting a second quarterly loss. it underscores the depth of the downturn which is facing the global technology industry. it is a memory chip supplier to apple. it came out reporting operating loss of $2.5 billion for the three months which ended at the month of march. however, shares jumped in the forecast for a second quarter sales rebound. haslinda: you said it, hynek's jumping despite the loss.

they say the chip sector will emerge from its deepest downturn later this year. chinese recovery on ai drive will support that demand. ping an insurance higher by 0.9%. flip the page and you take a look at how iron ore is trading. it slumped below 100 and now it is back above it, trading higher by 0.4%. still to come, tron founder justin sun will tell us about his plans for the stablecoin market and discuss his plans for the true usd coin. the discussions coming up. this is bloomberg. ♪ everything's changing so quickly. before the xfinity 10g network, we didn't have internet that let us play all at once. every device? in every room? why are you up here? when i was your age, we couldn't stream a movie when the power went out. you're only a year older than me.

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rishaad: let's check in with breaking news from alibaba. there were reports suggesting they would be cutting the cost of using their cloud services. they confirmed the reports, which came from the security, do these price cuts expand to user base? it could be cutting the client services by as much as 50%. alibaba shares at the moment, just below the gain line. let's have a look at what is going on with cryptocurrencies and that space. this is a look at bitcoin,

higher. partially down to some of the tech gains we have seen. that's where we find ourselves. we will stay with crypto. we are introducing our next guest, she is right here with me. >> taking a look at tron, which is listed on the binance u.s. exchange a couple of days ago. even higher but we want to bring in our next guest. justin sun, one of the heads and an advisor to world be global, one of the largest crypto exchange, he joins us from singapore. good morning to you. i wanted to kick off with one of the most interesting developments we had on the binance clock -- platform, is that linked to you in any shape or form? justin: personally i don't take any shares.

but it helped with the growth, with usd, usd t, all the stablecoin on tron network. since tron has been, in the last five years, we have our focus on stablecoin growth. so, i think today, if you check u.s.dt. you will find there is more qst on tron then. we collaborate with circle usdc. tron is still occupied around 1% or 2% of the usdc markets. annabelle: what about the

ultimate parent of trueusd. are you connected to that? justin: no, i don't have a tie. annabelle: do you have any details on the stablecoins ownership or origin? why do you think it is grown in the last few weeks? justin: yes. i think we have limited options in the stablecoin markets. today, we only have, probably usdt, u.s.dc, busd in the last three years, that is the only option we have in the markets. later, since busd received regulatory requirements to stop meetings, so that is why busd has to exit the market. the choice becomes limited.

only usdt, usdc, and usdc, and t that time, usdc is under attack because of the bankruptcy of silicon valley bank. so, lots of people at the time, doubted if the usdc has 100% of the reserve. the stablecoin price fell a lot. that's why i think a lot of big exchanges started to move their volume to usd, try to basically to diversify their stablecoin market share. haslinda: i want to ask about the lawsuit filed by the sec.

what is the status of that? justin: right now our team is still working on it. also, we have seen coinbase, yesterday suing the sec. we, as an industry, we probably, and also, last week -- by s.e.c. as well. in the coming months, we will see more derailment. rishaad: justin, what are you looking at? are you going to pay a fine? what are the options on the table for you? justin: so, right now, i think i don't have an opinion on it. but, i believe eventually, it will be resolved on just a

matter of time. annabelle: what about the impact that is seen for the water core exchange? you said your profitable so far but what are you seeing in terms of growth? justin: sure. recently, it's pretty good, because of hong kong, crypto policy derailment, and the traders starting to gain confidence on asia, and the crypto market. it's mainly focused on asia crypto. so, that is why i think recently, we have seen our business grow. now, -- not dramatically, for around 15%. also, we have seen the crypto price also recover a bit. bitcoin, last week is above 30 k

-- 30,000. we have a price drop today. but still, bitcoin recovered a bit from the bearish market. i think it is due to hong kong. annabelle: what about the hd token, your native token, that is down 30%. what are your plans to revive it? justin: yes, we have a big plan for hd derailments. we will probably do it in q2, stay tuned. i think it will be significant derailments. we're looking forward to that. annabelle: you mentioned the positive developments in hong kong. talk to us about your plan. you had said you are looking to relocate. do you mean you plan to move to hong kong, one would you be

looking to come here -- when would you be looking to come here? justin: i just came back from hong kong last week. i have's -- have stayed a hong kong for almost a week. i'm very excited about the development in hong kong. of course, i think we will find a new office in hong kong, and start to develop. so, that is why i think, for me, even right now, i haven't decided to permanently move to hong kong, but i think i am open to half-and-half, this kind of arrangement to spend more of my time in hong kong. also, i have seen lots of friends and developers in hong kong. i believe hong kong will develop -- definitely be one of the most

important crypto hubs in the future. we have seen the team, it is very active. they probably will develop in tron as well. so, that is why i am very optimistic. annabelle: you are no longer the trade rep to the wto for geneva. that affects your diplomatic immunity. does that have any bearing on your business, any plans to come to hong kong? justin: actually, it saved me lots of time. before that, since i bear a lot of diplomatic responsibility in geneva, that is why spend a lot of time in europe as well. but, since, luckily march this year, i resigned as the chief representative to the wto in geneva, which i think freed up a

lot of my time. so i can devote it to crypto, my crypto hobby. so, stay tuned. for my public services arrangement, we might have a new development in the future. we will keep everyone updated. annabelle: justin, thanks so much for your time. hopefully we will see you in person and hong kong. -- in hong kong. justin sun of tron. rishaad: we've got olaf scholz inviting the chinese premier for talks in berlin. it is the german chancellor's bid to ease tensions between europe and the government in beijing. it was meant to enlist china on a key partner to promote global peace as well as tackling climate change. he set out a redline on taiwan. binance u.s. has caught off a deal to buy the crypto bank

voyager -- to buy voyager. it comes after regulators haulte d. it is the second failed deal for voyager. it has been trying to pay its customers after filing chapter 11 protection. the tokyo space -- tokyo's ispace, assuming the landing failed, there is a high possibility it made a hard landing on the lunar surface. it was the first commercial attempt to place the lender on the moon. china saying its first mars rover has not broken up, potentially ending a mission that exceeded expectations. the chief designer says the vehicle had to stay idle, because of an accumulation of dust on his solar powered panels. it landed on the red planet in may of 2021. it has been exploring for a year. the original plan to run for

just three months. that is a look at your first word news. haslinda: silicom, three months after -- still to come, adani, questions raised for the short seller, the billionaires brother now and focus. this is bloomberg. ♪ go. go green. go wind turbines. go gorgeous reliable grid. go emerson software. go science people.

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rishaad: you are back, with bloomberg markets, as we enter our india focus subject. we have a lot of key stories, investors are watching out for. we are looking at politics. sources say that the government will push for easier visa rules for skilled professionals hired by is companies investing in u.k.. take a look at central-bank action. the reserve bank of india auctioning 3.49 billion dollars worth of treasury yields. in india, suzuki, hdfc life and sbi life, out with their numbers later in the day. haslinda: for more on what we are watching the markets, let's go to our reporter in mumbai. tell us more about these heat waves and how this is impacting investor sentiment.

>> yes thank you guys for having me. the heatwave has been on the radar for a lot of investors though conditions are becoming better but if you look at the impact it is taking on the market and of course on sectors, milk producers come top of mind. you have stocks sliding more than 15% this month alone, because of milk shortages in the country we have seen over the past couple of months. all eyes are on monsoon. the prediction of conditions are worsening. traders are nervous about what income it will have on the rural economy. stocks linked to that economy, such as britannia, a lot of makers as well as tractor makers. rishaad: tell us about some of the big names out with earnings as well. chiranjivi: if you look at the

earnings season so far, the start has been unimpressive but we are seeing momentum is building for a lot of the companies the start from technology, has been poor, with respect to guidance, as well as the fourth quarter performance. lenders have been meeting expectations, if not beating them, at this point. the banking turmoil in the u.s. economy and its impact on the software stocks in india is clearly a cost. on earnings growth outlook for the indian market, you have seen that estimates for msci india has been trimmed by 50 basis points from the beginning of the month to 14.7%. just to add a caveat, it remains the burst -- best earnings growth story in the emerging market basket. i think the comments we're

getting from market players is so far so good, but the risks are to the downside as far as growth estimates are concerned. rishaad: good stuff. thank you for joining us. our reporter chiranjivi chakraborty in mumbai. we have the open in the financial capital in india. having a quick look at a slightly lackluster day, the nifty trading to the downside. bank screening some of the drag. if you look at the industry groups, 11 of them are material and health, the biggest followers. we have information technology and also industrials, which are supporting the market to some extent. haslinda: the rupee under pressure. it's been three months since the short seller in new york took on adani's empire, wiping out $120 billion in market value. still questions raised by

hindenburg research. let's get more from our reporter. the focus falls on the older brother. >> exactly. there is little known about adani. the older brother. hindenburg says he is one of the figures that potentially helped with the rise of adani in his younger brother's empire, through the bloomberg research and investigation, it was found that not only is he involved to some degree with the coal mine in australia, which over a decade adani had been pushing and developing. until february, he held, one a lot of the uproar of adani came out, until february he was a director at three companies related to the coal mine. he had since then resigned.

what is known about the older brother, we have reported previously he was a director. we have reported that he has an adani related office in dubai. he spent several hours there a day. there is little known about him. which is what made this report so interesting. haslinda: still about governance, disclosure, how might this play out? stephen: what we found, at least through this, is through four jurisdictions, money had been changing hands for this coal mine in australia. now, because of the governance laws and what adani is doing they say that nothing was done illegally and that everything was disclosed correctly. the only problem is because of disclosure rules and some of the jurisdictions, it is unclear how to follow this money. it does show that one way it is

challenging to follow it. it is hard to look at it. the supreme court has ordered a committee to look at whether things were disclosed correctly regarding the wider empire as well as the opposition in india that has been pushing this very closely. but because of how opaque the system is, it is very challenging to see exactly how the company could be pinned for anything but the critics say it needs to be investigated further and it is something in the -- the adani company says it needs to be disclosed. they are following the rules as intended. rishaad: give us the controversy over the carmichael project. what has been going on there?

stephen: the coal project in australia is part of adani's crown jewel. that was this coal base in australia that was not developed. it needed a lot of infrastructure between the mine itself there were not any other coal mines, there were questions about the quality of the coal. because of the esg push, there were no lenders that wanted to help with developing this mine. a lot of folks said, this is dead, it will not happen because the banks will provide financing. what happened is through -- at least partially vinod related companies has helped with -- had helped with loans of debt with $1 billion to the filings bloomberg saw. this mine is operation. it supplies coal to india which

is a major producer of electricity. it will be providing to bangladesh. haslinda: stephen, thank you. speaking of adani adani it has almost lost $61 billion so far. you can get more details on the turban i'll -- terminal. he was the fourth richest before the hindenburg report and before he set up adani enterprises he was a diamond trader. keep it here with us. this is bloomberg. ♪

haslinda: let's do a quick check of the laadines. the u.s. unit is looking to downside to smaller offices in manhattan. the company had scouted for roughly 5000 square feet of offices. a smaller space than what it currently occupies. the manhattan office vacancies have hit record highs as tenants cut back on unused space. boushey sales grew and -- gucci sales grew. gucci's revenue growth of less than 1% failed to meet estimates. it stood in contrast to rivals. texas instruments gave a lackluster forecast, a stronger chip demand is spreading to unscathed areas. second quarter revenues are around 5.2 billion dollars,

dropping from the 15 we're expected. it fell to $4.4 billion. rishaad: let's have a look at what we have in terms of some of these movers. we should be getting earnings shortly. we are looking at the impact on interest rates, and how that plays out with a net interest margins, as well as whether there will be shared buybacks. alibaba cutting its cloud prices as much as 50% to drive user growth. and other companies we are looking forward to as well, hitachi construction reporting its earnings. we have a lot more on the way. up next, bloomberg daybreak middle east. ♪ or filing returns. avalarahhh ahhh

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