we are counting down to asia's major market opens. we are on the eve of the u.s. inflation print but traders seem to be interpreting it as a risk-on event. haidi: particularly after producer prices showed stickier inflation. we heard commentary from jay powell suggesting higher for longer is still where the narrative is. this kind of push and pull between fiscal and monetary policy is present here in australia with this budget that delivers subsidies to just about every household how is that going to potentially translate into that inflation battle being won? annabelle: certainly could complicate the picture for the rba moving forward. we have the opens of japan and australian. south korea shut today for a public holiday as is hong kong. japan coming online this morning and we are in the thick of earnings season for japanese companies. lots of different announcements last week and this week. today the focus is very much on

the japanese financial companies because we have the likes of mitsubishi and more, all releasing their numbers. nomura also one we are tracking, given he reported earlier this week. a big interview earlier with the head of wholesale banking speaking about the outlook for japan. he sees the japanese yen strength coming back so perhaps a question around whether boj moves with the policy settings. he also sees the 10 year yield exceeding 1%. you see continuing yields ticking higher. we are around levels we have not seen going back to november of last year. equities wise you have optimism but that very much tracks the wall street day given we saw the s&p 500 pushing higher ahead of the u.s. inflation print. haidi: take a look at the day after the budget. the big headline is after back to back surpluses, the budget is

set to swing back into the red. a lot of this has been funding for legacy programs were left unfunded by the previous government. some of this also comes down to some of the spending to fight the cost-of-living pressures. that is what economists are concerned is going to further stoke inflation. we are seeing a little bit of upside in the first couple of minutes of trade in australia. we are potentially going to see upside across the sectors that were targeted in this budget. health care, pathology is what evans and partners had pointed to as well as some critical minerals names that may be getting a boost. at least in the longer term. not much of a move and it comes to the aussie dollar trading at 6625. despite the pre-election spending. we are also seeing that solid fiscal stance and it comes to australia, still remaining one of the seven countries in the world that hold a aaa rating. watching some crude -- energy

names. in addition to the energy subsidies are seeing a bit of a bounceback and it comes to trading in crude. we had a lower price for most of the concession as concerns over the inflation print in the u.s. wanes, as well as opec-plus rhetoric. the overlay to all of this of course is the tit-for-tat we are hearing between the u.s. and china on these biden tariffs on chinese goods including the likes of ev's, batteries, and across some of the commodities markets as well. take a listen to what we heard from jay powell in terms of the inflation picture. also despite this being a very nuanced set of tariffs, we could see inflation pressure as well. >> the first quarter in the u.s. was notable for its lack of further progress on inflation. we had higher readings in the first quarter. higher than we expected. we did not expect this to be a smooth road but these were higher than anyone expect.

what that has told us is that willing to be patient and let restrictive policy do its work. haidi: let's bring in paul dobson. we really had an inkling from the ppi read. i guess the question is, what kind of a print the market we need to see to see any kind of relief? paul: it seems to me that probably the market is a little bit more tilted towards expecting a more favorable figure here. if you look at the premarket surveys, we are suggesting that more people see a risk-on after this number. it is a psychological thing. we have had three in a row where the inflation figures have come out higher than analyst estimates. some people basically saying that cannot carry on forever. probably going to be more cautious, therefore there is

more of a chance we will see a lower-than-expected figure in the cpi numbers this time around. that will probably be enough to keep the market looking favorable. although the ppi figures were not pointing to inflation slowing all that much, all the same, the bond market manage to recover and equities managed to push higher. of course the devil is in the detail with that. there were some components that feed into the pce that were not as troublesome. all these signs giving everybody just a little bit more hope that we can see lower yields after the cpi rather than higher and that that would provide relief. the risk is we saw that three times before and we have seen very big jumps in bond yields as a result of the disappointment in that has derailed things. plenty to play for and plenty of worry as well. annabelle: given the pricing it is expecting -- everyone is

expecting a risk-on environment. the move in chinese equities has been down to the tech rally. we had earnings coming out for alibaba and tencent and pretty mixed. how does that set us up for the session, of course noting that hong kong is shut for the public holiday? paul: we will get the full results and there is so much going on in chinese equities. it is very difficult to think it all through pre-for the earnings we had tencent, good. alibaba, not so good, although expectations were pretty lofty. nonetheless, it fell quite heavily. about 6% in u.s. trading overnight. as far as chinese tech is concerned, a little bit of pressure. plus we have the tariffs playing out across all those different sectors including renewable energy, battery makers. that might be where we start to see some pressure. chinese companies do not export a great deal to the u.s. so the imperative to all these

sanctions will not be humongous at this point. nonetheless, there will be some concern about what it means for the individual companies. and what sort of response we will get from china. what is interesting is this idea that will date allow the u.n. to start weakening as they did when trump imposed tariffs before. we could see that as soon as today although most people seem to be betting, and if you look at the pricing in the options market the short-term for longer-term, most people seem to be betting that if that were to come to pass, it would be more likely after the u.s. election than at this point in time. annabelle: that was our executive editor for asian markets paul dobson, which leads us to stephen engle this morning. talking about these biden administration moves to increase tariffs. china is vowing to take its own action against this. we don't know what that is yet, but steve is joining us. as we were discussing, very well telegraphed.

we had a bloomberg's coupon it at the end of last week. we can presume china new about it behind closed doors. what stands out to you exactly? stephen: paul was absolutely right as far as these products they are putting increased tariffs on are a small proportion in a sector, particularly ev's. there is already in more than 25% tariff on chinese envies. it will be raised to more than 100%. lithium-ion batteries 50%. everything from ship to shore cranes, 25%. surgical gloves, 25%. syringes and needles, up to 50%. there are a lot of targeted different products that they are raising the tariffs on. that janet yellen has said by the way, this will not cause a meaningful rise in u.s. prices. we are going to have to see because the u.s. buys so much day-to-day products from china. not yet ev's. it does not look like that is going to happen anytime soon.

what has the ministry of commerce said? they have obviously come back with some threat of retaliation. we just don't know what the retaliation will be. china will take resolute measures to safeguard its own rights and interests. the u.s. shipment directly canceled additional measures against china. it goes on to say that beijing saying the tariffs were a political manipulation. obviously in reference to the upcoming presidential election in november. also china really rolling out the guns. a spokesperson for the chinese embassy in the u.s. saying it is a false narrative about overcapacity in china, saying they are more competitive, innovative, and efficient. we want to tell our u.s. colleagues that blaming others will not make yourself more competitive. but again, it is a political year. and ev's and the new three from xi jinping, batteries, solar sells, and obviously ev's, are

the priority. and they have been able to drive down the price because of their scalability and according to china, their efficiencies. but again, there is rising protectionism in the eu in the u.s. against these products. haidi: political year, political tariffs. if you take a look at the exclusions, does it tell you careful considerations in terms of how this was built? stephen: look, this was a two-year review process on these latest tariffs. they took into account all the different industry concerns and the solar industry in the u.s. voiced concern for we need to build up our supply chain in our industry better. but that will be hindered if you raise the tariffs on key machinery that goes into these solar sells and the like. especially -- essentially the pleas arguing that tariffs on solar in good and wafer making

equipment raised the cost of building u.s. factories and undermined biden's goal of establishing a broad the mystic supply chain britt -- chain. they are excluding 19 products used to make solar components. the increased tariffs to 15% -- 50% do not include similar lithium-ion batteries for solar or wind equipment. as the u.s. tries to build up its manufacturing base and supply chain does not want to be hindered by those increased tariffs on their own supply chains. annabelle: we are over 10 minutes into the session. just tracking some big movers this morning. sony up near 10% at this point.

justin the first few minutes. the company announced a buyback and also a stock split. really tracking the theme across japanese countries -- companies. helping to offset concerns around a sales outfit that missed estimates. financials in focus. nomura reported last week but we heard from christopher wilcox earlier and the company talking about continuing to invest in its wholesale business. we're going to get more on the japanese financials later. these are all set the report later. coming up we are live to singapore as we look ahead to the new prime minister preparing to take power. avril hong is there. what do you have for us? avril: we're seeing a rare

leadership try vision taking place in singapore as the prime minister gets to hand over the reins after 22 years in power. the swearing-in ceremony takes place later today and we have some great guests lined up for you. we have discussions related to the u.s. and china tensions. what is this going to made for the trade reliant economy? singapore has expertly navigated geopolitical tensions but the landscape is evolving. what will this mean for fallen policy? -- for foreign policy. and a property boom has raised questions about housing affordability. those conversations are coming up later today. haidi: avril hong in singapore on a momentous day for singapore. first, we will be getting the opposition view and it comes to australia's budget. angus taylor will be back live next. this is bloomberg. ♪

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 something amazing is happening here. retailers are moving inventory quickly and securely. that's because cdw designed and built a solution with cisco security. end to end protection, defends against attacks

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beneficiaries of the world of churn and change. haidi: the australian treasurer delivering the annual budget. take a look at out australian assets are looking. watching to see if we see any uplift to comes to some of the sectors targeted by the budget. the likes of health care for example, critical mineral names. the aussie dollar is holding pretty stern -- pretty firm. back to bexar plus. the budget seems to be swinging back into the red. equity is trading higher by about three quarters of a percent following the rally we saw on wall street. let's get more money comes to the fiscal outlook. back to cameron we go with paul allen and our next guest. paul: thank you. i am here with angus taylor, the shadow treasurer. if there were an election in the governor would lose, angus

taylor it would be your next australian treasurer. thank you for joining us. i want to start with the obvious question around inflation. we have had so many different forecasts. the government says this is not inflationary. they see inflation back to the rba target by the end of the year. rba disagrees. what is your view? angus: it is very clear the reserve bank has warned the government that these inflationary pressures have not been beaten yet. that is also in the markets. there are still significant inflationary pressures that are unbeaten. and without beating them, the risk is ongoing insistent inflation. that is certainly what we have seen so far. we have the most persistent inflation in the world, according to economists. i think that is a very reasonable perspective to have.

sadly, this budget is not beating that. 16% increase in spending in two years. four dollars of spending for every one dollar of savings. we needed to see restraint. we have seen reckless spending in this budget. and we think that is creating a risk of a more extended period of persistent inflation and high interest rates. paul: i have heard some of your commentary say you will be supporting some of that spending when a budget comes to a vote. how do you square that? angus: there are significant parts of it we have a ready disagreed with and we will continue with. we are opposed in parliament. production tax credits of over $13 billion in the budget, which is money not properly allocated. there are significant parts of this budget we think is inappropriate for the times. whatever you think about those initiatives, production tax credits for some of the most successful industries in this

country, now is not the time to be doing that. we need restraint. we know that is how we beat inflation in the past. getting back to basics, making sure we have genuinely low energy prices, making sure we have fast approvals for most important projects, getting redtape out of the way. these are the ways that you deliver a strong economy with low inflation. not through government subsidies and government spending. paul: there was cost-of-living relief in the form of energy subsidies. $300 for every household regardless of their income level. everyone is getting a tax cut as well. do you feel that should have been more targeted? angus: if you look at the energy relief it is an admission of failure from the government who promised a $275 electricity price reduction before the election. they are clearly not going to deliver that now and so the answer is to hand out is subsidy. well, it is sad that it got to

that point. it is putting a band-aid on a bullet wound. sometimes when you have a bullet wound and all you have is a band-aid, you put it on. there are very real questions of why this is going to everybody. particularly at a time like this. the big numbers in the budget. initiatives like the $13 billion in production tax credit. they are highly expansionary investments. i don't think they are ultimately going to deliver the pathway to prosperity we need. this country has succeeded on the back of some extremely globally competitive industries. when you say that is going to make the government subsidize industries, i think you are taking us on a pathway to poverty. paul: talking about some of those tax incentives for some of

australia's most successful companies, part of the intention of this is to boost critical minerals production, other things that are essential for green energy revolution. it is hard to argue with that logic. angus: you can argue with it. australia has been an economic miracle over multiple decades. and on the back of globally competitive industries. where we are the best and have been the best in the world. make no mistake about it, when it comes to iron ore, we created that industry in australia. they have powered our economy, prosperity, they pay taxes for the hospitals and schools and universities we have. and now we say they have to be government-subsidized? that is a pathway to poverty. it is not the right way through. we can build a critical minerals industry in this country which would be very successful. i have no doubt about that. but it is about getting back to basics.

energy prices, approvals, getting industrial relations right. we know what has worked in the past. it is very clear that is what will work in the future. paul: the impact of this on the budget bottom line is it is back to a deficit. this appears structural and this was something happening the last time your party was in power. the budget seems to exist at the whims of global commodity prices and other large macro events. it is clear there are some structural issues going on. would you be willing to take the pain at the about box bring about the reform that is obviously needed? angus: the first point is the budget is moving to a structural deficit in two years. and there is a sea of red beyond that. this is a windfall surplus we have, not a structural balance, which is what we need. the government has taken the structural balance rule out of the budget. we would reestablish that rule day one.

there has to be a commitment to getting to structural balance. you do that exactly how we did between 2013 and 2019, which is you grow the economy faster than you spent it. it is very simple. the finance minister at the time was relentless on this and it worked. we did it. we know how to do it. instead in this budget, we see a 16% increase in spending in two years, more than double the pace of the economy. that is why this government is taking into the red. if you want to beat inflation, having a sea of red in your budget is not the way to do that. we know that from history. the lessons of history are very clear. and we would change those rules, reestablish those disciplines. that needs to be done now. paul: shadow treasurer, angus taylor, thank you for joining us. reacting to the budget.

we are in a surplus for this year. back in a deficit for the years following and potentially interact -- election in the years following. haidi: more to come. this is bloomberg. ♪ ffice chatter) is it me...or is work not working? at least, not the way it could work. your people are buried in busy work.

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the early part of the asian session. seeing modest upside when it comes to copper pricing. about .1% higher. chile raising their economic growth on the back of soaring copper prices. we have seen options volatility jumping in recent sessions. watching iron ore as the china property debt story continues to play out. seeing the downside for trading. brent crude seeing upside. shrinking u.s. stockpiles looking ahead to the numbers in the second half. this is bloomberg. ♪ and they're all coming? those who are still with us, yes. grandpa! what's this? your wings. light 'em up! gentlemen, it's a beautiful... ...day to fly.

annabelle: 30 minutes into trade so far for japanese and australian assets.

korea shut today for a public holiday. the nikkei pushing 1% to the upside. a little unsurprising because we had that wall street session overnight. u.s. traders already priss gone -- already pretty risk-on. tracking headlines around the fed and expectations of policy settings. the kansas city fed chief has been speaking in the brass cut saying interest rates could stay higher for longer, echoing what we heard from jay powell. though he does believe monetary policy is in the right place. no certainty we ever get back to that low rate environment. echoing what jay powell was saying. the japanese yen holding steady but still weaker. that weaker trend coming through. sticking with the japanese yen is that focus on how it has been impacting company earnings. a number of companies reporting, the thick of earnings season in

japan. different ones we are tracking include sony, casio, rakuten. army going to see any market reaction coming through to these new biden tariffs? let's get more from our china show kill anchor david and glaze -- david in glass -- david: i'm glad you mentioned trump. if you look at the time horizon moving forward there is near-term dynamics at play. longer-term when you look at the u.s. election, some of the spreads between six-month options has hit a record. we are getting hedging taking place. as far as the tariffs go, no reaction and no reaction so far. the simple exchange rate chart

in your screens. it is a dollars story ahead of u.s. inflation numbers coming through. has remained stable despite what happened with the japanese currency. a suspected intervention. on this metric, no reaction. very quickly, one that we like to track going into news cycles like this is the spread between the offshore and the onshore rates. that has also remained stable. in times where you get risk aversion taking place, you typically get the spread widening. as far as this concerned, no reaction. why was i still here? nothing is happening. it is also a holiday -- it is a holiday here in hong kong. i don't know why i am here. haidi: a report about nothing.

let's take a look at some stocks that are actually moving for a change. a lot of these are earnings flow stories. we are watching sony, really the only outperformer on the screen by just over 11%. we had that earnings beat, the stock buyback. the biggest jump in about 18 months. lifting net income past estimates. net sales also beat expectations despite some concerns about the revenue outlook on a yearly basis missing estimates, and concerns about waning demand for playstation 5 hardware. casio computer, a very different picture. missing estimates also plans to cut 500 jobs in fiscal 2024. admit of downside when it comes to casio computer trading today.

sharp. there were expectations they would be able to achieve that stable profit on appliances. expectations that we will see a recovery in the lcd plant. downside of about 8%. annabelle: and we are in the thick of earnings season in china as well. tech companies are the ones we are watching. tencent, the u.s. traded shares. the jump, there was a bigger than expected surge in earnings. alibaba a very different story, a profit plunge. there is that growing divergence we are seeing between china's internet powerhouses anti-divergent response to the post-covid recovery. let's get more on that and bring in bloomberg intelligence senior analyst catherine lim. it is a first time we have seen them reporting on the same date in a number of years. what stood out to you exactly? catherine: not sure whether that

was deliberate but what stood out to me was two very different fortunes we are seeing for the companies. they are in different businesses. tencent's domestic gaming business seems to have come up from a low and we are seeing a sequential improvement in domestic sales. so that is good news. and clearly there are the bright spots that we see from advertising revenues and their ability to actually monetize some of the other businesses they have, particularly video accounts and getting on board more e-commerce transactions. so that is all looking good for tencent alibaba on the other hand are facing a lot of competition on their core businesses. and really the e-commerce business. whether it is in china or globally. they are putting themselves up against pdt and we still have

tiktok and amazon in the global arena as well. haidi: is it safe to say that the worst is over for tencent in terms of the gaming revenue slowdown? catherine: i do think that from the numbers we have seen, and the sequential improvements that we have seen coming through from the first quarter numbers, i would say the worst is over for tencent in terms of their core gaming business. annabelle: what about alibaba? there has been a focus on these different units and potential spinoff plans. what is the biggest risk the you think going forward? catherine: we have put aside all of that restructuring and they are now going heads on into all the different businesses by them valves. they are going to be investing into revitalizing the topline growth for their commerce businesses in the cloud businesses. that is going to take a lot of

expenditures and investments. we have seen that hitting the bottom line of adjusted ebitda of the companies. and i think you might actually see the profit decline widening over the next three quarters. haidi: catherine lim in hong kong. let's look at some corporate headlines we are following. byd has debuted his first plug-in hybrid pickup truck in mexico. they say it will be available globally priced around $53,000. it comes as president biden announced 100% tariffs on chinese ev's, but byd does not plan to sell it in the u.s. they reported first-quarter earnings that beat analyst estimates. shares jumped on the results. adjusted earnings were down 21% from a year earlier, but still while above analyst expectations.

boeing says it delivered just two dozen commercial jets in april, the lowest monthly tally since february 2022. that included 16 737 max jets. they have slowed production of some aircraft to focus on improving quality. it has been under intense scrutiny after a jet suffered a structural failure in january. get a roundup of the stories you need to know. go to dayb on your terminals and it is on your mobile in the bloomberg anywhere app. you can customize the settings so you just get the news that you care about. this is bloomberg. ♪ were you worried the wedding would be too much? nahhhh... (inner monologue) another destination wedding?? why can't they use my backyard!! with empower, we get all of our financial questions answered. so we don't have to worry. empower. what's next.

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haidi: it is the end of an era in singapore as the prime minister prepares to step down after two decades. he is handing power over to a 51-year-old who faces a growing list of challenges. let's cross back to singapore where avril hong is standing by with our next guest. avril: yeah. we are seeing a rare leadership transition. the prime minister handing over the reins after 20 years in power. singapore's success is the

result of decades of planning. how will the new leader guide the economy, especially against the backdrop of the u.s. and china going toe to toe on tariffs? we have with us now pushan dutt, professor of economics and political science. professor, we are hearing how china is pledging resolute measures on biden's new tariffs. yet this is not a movie we have not already seen at the peak of the trade war. we have pandemics, we have got wars, all that, singapore has come out pretty resilient. but it is an evolving landscape. how will the new leader adapt and respond? pushan: we always have to think about the fundamentals and the fundamentals in singapore are very strong. they are a little bit independent of the leadership in the sense it has a very good legal system. there is no corruption. predictable infrastructure. all the fundamentals are in place. of course the world has become a

far more risky place and singapore is very much exposed to these shocks because it is what economists call a small open economy. it is open in terms of trade, flows of ideas, flows of capital. which means shocks rapidly propagate themselves. the big risk is the rise in trade and technology tensions between the u.s. and china. this is escalating because of u.s. politics. i would not about taking long-term steps right now but wait until january and see what happens. who wins the u.s. elections. i think many of these policies might actually shift and a lot of these tensions might cool down. but until then, expect a ratcheting up of trade tensions. avril: for singapore it is all about long-term trend -- planning. how can it anticipate some of these needs, potentially the most strategic about trade, maybe embed itself deeper into global supply chains?

pushan: if you look at how the trade of singapore has evolved, trade is a really big part of the singapore economy. and there have been two big long-term trends which we should keep an eye on. the first thing is that singapore's exports have become a lot more complex. what does that mean? it uses what are called intermediate inputs coming in from different countries and sectors. this complexity comes at a cost because if there are shorts to the supply chains there is a lot of disruption that happens. in a sense it exposures you a lot more to global shocks. but the other thing is they have also been diversifying the exports. so it is no longer if you sectors, manufacturing, etc. singapore's exports are good, $600 billion. it is quite diversified. last year services exports was $400 billion. so it is moving more towards

services which are less vulnerable to these kind of shocks like supply chain disruptions. these are sort of borderless. at the same time look at financial services, which is subject to u.s. sanctions, weaponization of the dollar, transportation and logistics, which means if there are problems in the south china sea that might also be affected. the singaporean economy is quite resilient. how they worked through covid was very impressive. they still have to be careful about the future. avril: there are risks but we are adapting. cost-of-living is a top concern for voters. what is that going to mean potentially with the incoming leader talking about boosting social safety nets? what is it going to mean for our fiscal position? pushan: it has been changing a lot. the big change that happened was during covid. when singapore spent $72 billion in terms of fiscal relief.

it actually went into reserves which usually they try to not touch. what was impressive during the covid response, apart from them safeguarding lives and livelihoods, they were practical about it. what is going to work? today the big shock is inflationary shock. inflation affects the poorer segments of society this proportionately. if you look at prices of utilities and food that has really gone up yes, real wages have still gone up. nominal wages have increased higher. people get very annoyed about it. you can see political troubles happening across the world because of inflationary problems. whether it is biden, rishi sunak, everywhere. i don't think singapore will be an exception pretty so this will have political consequences. but these are short-term because inflationary pressures are easing. i do not think there will be huge long-term shifts. avril: how will wealth

inequality be addressed? pushan: if i look at income inequality, singapore has made a lot of progress income inequality. the gini coefficient captures the broad income distribution which has gone down. in 2010, the richest 1% had about a 20% share of wealth. today it is 31%. partly this is due to an influx of money through family offices, hong kong shut down, a lot of millionaires and billionaires moved here. the impact on the local population is not that significant. why? yes, they might buy houses and assets and things like that, but that is a very small segment of the real estate sector. they are far more hurt by the mortgage rates and they are high because of interest rate pressures. there is a lot of grumbling on the ground and a lot of nv.

-- envy. so singapore has to care about out inequality, keep it than manageable boundaries. avril: professor, great to chat with you. thank you very much for your insights. speaking with professor of economics, pushan dutt. back to you. annabelle: we will have more of course we the u.s. had as we get more analysis on singapore's historic leadership transition and the future of the lion city later today. those conversations are coming up at the times you can see on the screen. you can also sign-up for our singapore addition newsletter for insights into one of asia's most dynamic economies. that is delivered weekly. he says china needs to stimulate the economy and find some solution to revive consumer confidence. he spoke exclusively to

bloomberg in doha. >> i think the big challenge in china has been who is going to invest out there. because western funds or endowments in the u.s. or europe are very hesitant to invest. we always believe that the key trigger for china would be china domestic capital flowing. technically speaking if you look at the retail investor, housing used to be their biggest asset. they don't find that interesting any longer. when you are getting 2% in the bank you should be putting money into equities of these evaluations. you need to have some trigger that will change consumer confidence and that expectation for us has not happened. i expect that will be the trigger. for a sustained return. >> what would you be interested

in in china? it has had a torrid time since 2021. some recovery right now. what might you be looking at? >> the u.s.-china tensions, i do not think of that is going to improve. we like companies that have access to large domestic markets and are relatively self-sufficient in terms of technology with 11 ecosystem. in china, a lot of consumer businesses and brands in china, large cosmetic brands in china that are now bigger than l'oreal in china. beverage companies that are bigger than starbucks or any competitor. you have sports goods companies, gaming, consumer durables. all of these are very

china-focused businesses. and i do not think they are going to be impacted by what happens geopolitically elsewhere. those continue to be opportunities. so that is important. i've always talked about biotech being interesting. you have a lot of new drug development taking place. the challenge has been concerns about china operating in global markets and what will happen. you are seeing multinationals willing to buy the rights for global news. the amount of out licensing bring from china has gone up. so you are seeing people appreciating the technology. so there are segments which are attractive. but the key source of capital which prices that appropriately will have to be domestic capital. and for that we need a revival of domestic consumer confidence. which is still lagging.

it is lagging because real estate prices are down and because jobs are not available. so those are issues. we need the government to stimulate the economy and find some solution to real estate to revive confidence. haidi: more ahead on daybreak: asia. this is bloomberg. ♪

haidi: indian prime minister narendra modi has grown highly popular and deeply polarizing. bloomberg originals is been looking at his rise, and his policies mean for his country's future. here is a preview. >> who is narendra modi? well, it depends on who you ask. >> india's prime minister makes the impossible possible. >> he is very conscious of his image in history. >> he has completely seduced the hindi hindu belt. >> some view him as the most effective prime minister in the history of india. he is passionately worshiped by millions. and hailed as one of the world's

most popular leaders, with approval ratings surpassing 70%. >> democracy delivers. and democracy empowers. >> on the other hand, critics see him as an autocratic hindu nationalist who marginalizes minorities and undermines democratic norms. >> the idea that india is a democracy, , this is a lie. haidi: for more on why narendra modi is highly popular as well as deeply polarizing, you can read today's big take and watch the bloomberg originals documentary. our podcast also launches today. new episodes will be dropping

every wednesday and you can track the latest developments on the bloomberg terminal as well as on tv. time to check stocks to watch. we are continuing to track asian ev stocks. one of the key focus points. when you look at future as you are going to be getting reaction coming through to some mixed earnings results from tencent, alibaba. hong kong equities are not trading today for a public holiday. u.s. equities fairly flat. ♪ you don't have to worry about things like changing tax rates, exemption certificates or filing returns. avalarahhh ahhh ahhh

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david: welcome to the show, we are half an hour from the opening bell. yvonne: asian stocks extending gains