Skip to main content

tv   Bloomberg Daybreak Asia  Bloomberg  May 26, 2022 7:00pm-9:00pm EDT

7:00 pm
7:01 pm
>> good morning. we are counting down to asia's major market open. shery: welcome to "daybreak: asia." asian stocks make it a boost from wall street with earnings suggesting the u.s. economy remains resilient. washington's top diplomat takes aim at beijing, warning president xi will seek to dominate industries of the future. alibaba posts an earnings beat which could leave investor fears around covid lockdowns in china. haidi: here's the picture as we get into the start of trading. australian futurist looking firm, looking to reverse previous losses of thursday.
7:02 pm
they were looking like an early pop of 1% after u.s. stocks studied with a rally on the block -- on the back of positive retail earnings as well as the idea of a fed pause taking hold. we are ceiling -- we are seeing new zealand up despite consumer confidence number disappointing this morning. washing for a comeback when it comes to the dollar. we saw consolidation on support of monthly flows and that is potentially creating more weakness. the dollar yen holding study. the aussie starting to see more momentum despite concerns over the downside in china and how that is waiting on the risk currencies. shery: look at my board, looking pretty boring, pretty flat at the moment. almost direction less. not doing much in the early trading session after the s&p 500 extended gains. we have retail earnings, not to mention mortgage rates falling
7:03 pm
which boosted investor sentiment. we have dollar tree with a better forecast. what a relief that one after what we saw last week from walmart and target. treasuries not doing much. we have wti, the consolidation in dollar, a strength around early april. that helped wti prices go up above $140 a barrel. we also had tightening u.s. fuel stockpiles. perhaps the news is really on geopolitics. antony blinken has taken aim at china's president during a speech on foreign policy. >> rather than using his power to reinforce and revitalize the agreements, the principles, the institutions that enabled success to other countries can benefit from them too, beijing is undermining them. under president xi, the chinese
7:04 pm
communist party has become more repressive at home and more aggressive abroad. shery: let's get more from bill faries. this was an exciting speech. it was delayed and it did not disappoint. what exactly did the secretary say? >> you are right, the administration has been talking about this since last year. what we heard today was far stronger language than we typically get from secretary blinken when it came to china and presidency directly -- president xi directly. the goal was to lay out a public version of the biden administration's china strategy and there was not a ton new but he said it was built on three principles. one was faltering investment at home, things like infrastructure, trying to lure more semiconductor factories to the u.s. working more with allies abroad.
7:05 pm
this was a reference to the quad lock -- block with australia, japan, and india. then competing economically and militarily with china, what he called a level playing field. he said what the u.s. wants to do, recognizing it cannot change the chinese government intentions, is to try to influence it by building these alliances, continuing to push for international norms to be respected. it was a broad speech put a tough one and one that i'm sure will generate an interesting reaction from beijing on friday. haidi: we are getting confirmation of the chinese foreign minister meeting with the solomon islands foreign minister on thursday according to the foreign ministry in china, that press briefing in beijing. it comes at a time where australia's prime minister is
7:06 pm
visiting the pacific islands, she made that speech saying australia's partnership comes without expectations, not mentioning beijing by name by name but the implications are clear. is there a sense that america and its allies are being more proactive on the ground after the last few years? is this coming at a time when we see the perception of a more weakened beijing with the domestic issues they are dealing with? bill: it does from the u.s. point of view, it does seem like beijing is on the back foot. they have a lot going on with covid, with the party congress, the economic slowdown and inflation. those issues everyone is dealing with but it comes at a rough time for china. i think there is a sense that the u.s. and its allies were perhaps not doing enough on the ground. the solomon islands agreement was a wake-up call for australia, but for the u.s. and much of the west as well.
7:07 pm
it was just today that president biden sent his nominee to be ambassador to a number of pacific island nations to the senate for confirmation. you can speculate on the timing. it does seem to be something that has moved along because of what happened in the solomon islands. i think there is a renewed effort to get everybody in more of a lockstep and agreement. shery: how much of this stems from the biden administration, from what is coming in ukraine as well? china's perceived friend latest to russia and parallels to the taiwan situation. bill: i think a couple things on that. the u.s. wants to send a message and secretary blinken set it, they want to send a message that despite the attention going into russia's war on ukraine, that they want to keep a focus on what they call the long game.
7:08 pm
that is china's rise and its role in the years and decades ahead. they say, that is our big challenge. i also think the u.s. is particularly aware of the idea that china is watching for lessons learned for what is happening in ukraine, so the u.s. has been keen to fortify its nato alliances and put on these tough sanctions and show that rather than the west being in a decline in the institutions of the west starting to crumble, that is has strengthened them and if there were some move on taiwan, a similar response would be waiting for beijing. haidi: bill faries there. let's get more analysis on how chinese growth is playing out when it comes to market sentiment. let's bring out our asia editor.
7:09 pm
it is interesting the aussie dollar funding bird growth despite concerns. >> the chinese currency is coming under pressure. recite under that 100 level. traders are talking about it going to seven in the next few months. these fears of deepening economic slowdown in china is what is weighing on it as well as discord we are starting to see among policymakers as they try to balance the covid controls with how to prop up economic growth. economists expect china to meet its growth target. we are also seeing a widening differential between u.s. interest rates and chinese interest rates as the fed
7:10 pm
tightens in as beijing is coming under pressure to ease monetary policy to prop up economic growth. all of this is weighing on the yuan. the central bank has not actually come in to intervene. they have looked at reducing fx reserves and officials have said the movements are healthy. also worth noting, historically, these next two quarters tend to be quarters of weakness for the yuan. we are seeing dividend payments, from chinese companies. there are a few things weighing on the chinese currency. shery: let's look at u.s. stocks. the narrative of a federal reserve moderation, not to
7:11 pm
mention solid earnings, did help the new york session. when it comes to the futures space, that is not being sustained. how are we setting up for the asia open? andreea: i think at the start, asian stocks will get a bit of a boost from what we saw in the u.s. you also had the chinese stocks, that golden dragon index up sharply. that will probably underpin some sort of gains. you had a fed survey last night showing that consumers longer-term seem to be confident that inflationary pressures will ease. you also have u.s. mortgage rates coming down. you are looking at incredibly cheap valuations after the selloff we have seen. all of that led to this broad rally in the u.s. we are going into a series of
7:12 pm
fed interest rate hikes, even though we are talking about a pause. will we see things likely to continue at this stage? it looks like asia will get that open, but volatility is likely to continue. shery: our across asset asia editor there. let's get to su keenan. >> we start with china and russia, they vetoed a resolution sponsored by the united states for new sanctions on north korea for its recent missile launches. it is a first serious division on north korean sanctions among the five veto wielding permanent members. china section owing's -- china sanctions will make the situation worse. the imf says it has made progress in analyzing sri
7:13 pm
lanka's economic situation and identifying policy priorities. it is cautioning they need assurances that that sustainability will be restored. the fund also welcomed the sri lankan appointment of advisors. sri lanka wants a bailout program in place by mid june. the pakistani government is raising local fuel prices to meet a key condition set by the imf for reviewing its bailout program. that decision was made after a week of talks without any agreement. pakistan needs a $3 billion loan to keep its economy afloat and avert a default. the fund had been pushing the country to remove energy subsidies. japan is set to end a ban on overseas tourists that was introduced two years ago as part of the virus control program. beginning june 10, foreign travelers will be able to enter the country.
7:14 pm
japan will double its cap on overseas arrivals to 20,000 people led a and about international flights to land inhokaido -- to land in hokaido. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. haidi: still ahead, how covid has reversed a trend of declining inequality. moreover the world bank director. plus, key global economies including the u.s. should be able to avoid a recession, more on that next. this is bloomberg. ♪
7:15 pm
7:16 pm
7:17 pm
>> we want to move at a pace into a level around 4%. it does give us time to stop and breathe and observe the data. >> it is likely there might be a falloff from the rate hike. >> the priority for the bank of korea is the real interest rate reaching a neutral rate. >> on the back of expansion this year. >> there has been increased in
7:18 pm
inflation expectations. >> other banks -- the more other banks are doing, the easier it is for us. >> some of the central bankers we spoke with this week. our next guest, the u.s. and global economy should be able to avoid recession if inflation begins to show -- begins to slow. joining us is shane oliver. the question of the moment is how much conviction we see in each of these rebounds. some of the indicators are telling us that that appetite for participation is moving higher. shane: they do, but we have had several of these rebounds through this downturn which started earlier this year. they have failed.
7:19 pm
one of the things that makes me a little cautious about it is the fact that we never saw the vix cap to levels in the past that were associated with a big washout. you could argue that while sentiment has moved in a direction consistent from a contrarian point of view with a rally, it has not gotten bearish enough yet. the other factor is you can read what you want to, but at the end of the day, they are going to be data-dependent. i think inflationary pressures build come off later this year, but in the short-term, we could go through a period of uncertainty. even if inflation rates stabilize around 8%, they are still too high for the fed and therefore you still got this risk to do another 50 basis points in september. those risks are quite high and they caution me in thinking that we have reached the bottom.
7:20 pm
i think the risk as we have not seen the bottom. haidi: in the meantime, australia is one of your preferred markets. i guess that linkage with commodities is obvious. is that a good place to look for opportunities if there are stagflationary worries? shane: it is and i think we have seen that. it has come down like other markets but it has only had an 8% fall depending on which day you look at it. whereas top to bottom in the u.s., almost
7:21 pm
does not have a lot of tech stocks so it is not vulnerable to the tightening policy and has a higher exposure to commodities and the likelihood is we have moved into a commodities cycle even though they have gone overboard in the short-term, those do well for the australian share market. we do have an inflation problem in australia, but it is not of the order that you are seeing in other countries like even new zealand, canada, the u.k., all around 7% or so inflation. europe pushing towards 8%. in australia, around 5%. it is not as intense as other countries. i think those things go well for the australian share market. shery: what about the exposure to china? we see growth forecasts declining. shane: that is a concern. when you look at the australian share market, they have been on dates associated with renewed -- with renewed rates about china, new lockdowns organizing case counts. the flipside is it is like yin and yang, you have xi jinping.
7:22 pm
the premier is focused on economic growth. i think it is complicated. i think ultimately the need for more stimulus in the months ahead, we are starting to see that, and more pressure on regional administrators. that is what we have been seeing with the talk from the premier, that will ultimately boost growth. and you have the war in ukraine continuing which means ongoing constraints in terms of supply of various commodities which benefits australia. shery: so many different calendars around the world. -- different challenges around the world. next week, we have quantitative tightening starting, this chart showing how we are bracing for the countdown to that on june 1. we have heard from the fed minutes policymakers saw a risk of unanticipated effects on markets without unwinding of the 8.5 trillion dollar bond
7:23 pm
portfolios. is there anything asian market investors should be aware of? shane: not really. it should be factored in because it has been flagged, but we know from the period around 2018 that it can be associated with roughness ensure markets. that is an additional risk as that money gets sucked out of the u.s. economy and hits the global economy, it could cause more volatility. the flipside is also we have to allow the quantitative tightening as to factor monetary tightening. it is one reason why the fed won't raise as much as the markets feared. shery: that is interesting, that could perhaps give a boost to the market. good to have you with thousand good to talk to you. of course, we are counting down to the start of trade in tokyo and seoul. some of these stories we are watching in japan, we are
7:24 pm
expecting inflation data for tokyo with the bloomberg survey showing median estimates of a 2% rise. the government announcing it will end a ban on foreign tourist arrivals. the country's biggest steelmaker warns it will push through with more price hikes. . in korea, the minister will hold a meeting with the five biggest financial institutions in a couple hours. local media reported samsung display will close its lcd business in early june. those are some of the stories we are watching. this is bloomberg. ♪
7:25 pm
7:26 pm
>> we are tracking the fallout of the global supply chain crunch and these are the top stories. vladimir putin says he is willing to facilitate exports as
7:27 pm
global concerns mount over food shortages. but only if sanctions are lifted. he did not specify if he was referring to russian exports or those from ukraine. apple is planning to give iphone production roughly flat in 2022 as the supply chain turmoil threaten sales. sources said the company is asking for supplies to send 220 million iphones. local korea media reported samsung is reducing smartphone production on weaker demand. ongoing supply chain issues could prolong waiting lists. those are already into the second half of next to for some models. recent lockdowns in china forced the carmaker. shery: look at this chart which shows how they have all most
7:28 pm
fully recovered from covid-19 lockdowns, but the backlog from the facility and thereby stocks will likely continue to cause chipping congestion well into the year. luber terminal users can read about those stories. here is a check of the latest business flash headlines. broadcom has agreed to buy vmware for 61 billion dollars, turning the chipmaker into a bigger force in software. one of the largest technology deals of all time. the transaction represents a 44% premium to vmware up off he asked value -- vmware's value. >> a project is set to be the biggest chinese listing in the u.s. since didi, the deal will value the company at $3.8 billion. we will more to come. this is bloomberg. ♪ xfinity mobile runs on america's most reliable
7:29 pm
5g network, but for up to half the price of verizon so you have more money for more stuff. this phone? fewer groceries. this phone? more groceries! this phone? fewer concert tickets. this phone? more concert tickets. and not just for my shows. switch to xfinity mobile for half the price of verizon. new and existing customers get amazing value with our everyday pricing. switch today. as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.™
7:30 pm
7:31 pm
>> coming in at 2.4% for the month of may, slightly below what economists expected at 2.5%. it is a slight easing from the previous month. we are following core cpi, exporting fresh food, the volatile prices. a growth of 1.9 percent, which is below expectations by economists and is at the same level as the previous month. i exclude energy as well, core cpi, 0.9 percent, in line with estimates. we are watching this tokyo cpi number because there's an indication of where headline numbers will go and the bank of japan's percent target is key.
7:32 pm
although the bank of japan has made it clear they will not move because they don't know how durable these inflation numbers will be. we continue to see prices of electricity and gas rising id can see that on year on year growth of 1.9% for tokyo. let's stay in japan because it is set to reopen borders to foreign tourists from june 10, but only to visitors on package tours at first and the ban introduced two years ago as part of the covid control measures. let's print and isabel reynolds -- let's bring in isabel reynolds. i cannot remember the last time i was in tokyo. what is prompting this move? is the covid situation getting better? >> the covid situation does seem to be stable at the moment. we can say that. but i think there is obviously the business pressures. taurus and the hotel industry has been suffering.
7:33 pm
rather it is domestic tourism at the moment, those foreign tourists really did drop the cash. they do need them to come back. on the other hand, the numbers are going to be modest to start with. japan has agreed to lift the daily cap on international arrivals to 20,000 a day. that is still small compared to what it was before the pandemic. we are not going to see huge numbers of arrivals all at once. these are only going to be packaged tours and they have to be with a guide. i think that is because although japan does not have strict laws about virus regulations, there are customs and etiquette around what people can do to prevent the spread of the virus and they want to make sure tourists are fit for those rules. haidi: are there going to be different categories depending on where travelers are coming from? isabel: we don't have details at the moment.
7:34 pm
but we have been told the government has said that 80% of arrivals will be able to come through without being tested at the airport on arrival and without having to go into quarantine. the countries of the world will be divided into three categories. as far as we know, most countries will fall into the category where there will not be much difficulty arriving. shery: i saw the headline, i was excited until i saw the fine print that it is only for packaged tours. hope to see you soon in tokyo as you continue to reopen with the latest from japan. let's get to su keenan. su: we start with the latest, the state department in the u.s., antony blinken has taken aim at xi jinping during a speech laying out the administration's approach towards china. he called beijing the most serious long-term challenge to the international order and
7:35 pm
washington will seek to influence china by shaping the world around her. he also accused xi of the international systems. >> rather than using his power to reinforce and revitalize the laws, the institutions that enabled its success so other countries can benefit from them too, beijing is undermining them. under president xi, the communist party has become more repressive at home and more aggressive abroad. su: the country promising aid and assistance to pacific nations with nostrums attached in what appears to be a veiled cabinet china. -- veiled jab at china. the visit coincides with a trip by the chinese state councilor to the pacific with beijing reportedly seeking security and economic deals. vladimir putin says he is
7:36 pm
willing to facilitate grain and fertilizer exports but only if sanctions on his country are lifted. he did not specify if he was referring to western exports or those from ukraine. that u.n. has accused russia of waging war on global food security. the u.k. will impose a windfall tax on oil and gas companies to ease the cost of living prices for its poorest residents. the 25% levy will raise $3.6 million and be -- and will be used to pay for a one-time grant of $820 to 8 million the income households. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. >> shares of alibaba sort
7:37 pm
overnight in new york after companies posted better than expected revenue gains. let's bring in our asia correspondent. expectations were pretty low. give us some context as to how good these numbers are. >> it was a sigh of relief or global investors who have stuck with alibaba and its decline. the stock has been down 30% year to date in been hammered since the regulatory crackdown began on it and aunt -- ant. shares rose almost 50%. -- 15%. there were a couple of beats. that is how the bar has been set so low. you can see revenue was up about 9%. the estimate was 7.1% increase
7:38 pm
in revenue. after tencent disappointed a week before, eking out revenue gains of 0.1%, alibaba's beat was a positive. also on adjusted net income, if you strip out investment losses, you had a beat. adjusted net income was up, revenue was up, the stock was up. there's still a lot of headwinds for alibaba. we don't have much clarity on the path forward for an easing of regulatory concerns even though government officials have talked up the platform economy, they have not necessarily delivered a timing on when a rescue bill be allowed or what policies will come down. also, competition has been heating up since the antimonopoly campaign began to whittle down the competitive
7:39 pm
advantage that alibaba had. can i bring up a bloomberg terminal -- we will go into terminal 6185. you can see how gross margins have been squeezed over this time period at alibaba. that is not the chart. you can see how the competition, the blue line there is tdb beating alibaba on the growth margin front as alibaba's margins have come down. the other headwinds are going to be the covid situation in china where retail sales plummeted in april. this current quarter could be worst in the first quarter because alibaba has refused to give a current fiscal year revenue outlook. this is where it ceo weighed in, he says in april, there's been significant pressure on
7:40 pm
alibaba's business. he is seeing improvement in the covid situation in shanghai, but considering the risks and uncertainties arising from covid-19, which we are not able to control and are difficult for us to predict, we believe it is prudent at this time not to give financial guidance. one side note, ant group contributed $1.1 billion to alibaba's earnings. ant reported its report card a month later than alibaba. this report card was from the calendar fourth quarter through december. it was a slight increase from year-over-year levels. there is a little bit of good news down the line of this report card from alibaba. is it enough to put a floor on the stock fall? shery: what about baidu? stephen: similar story, it beat expectations. baidu focusing on artificial
7:41 pm
intelligence investments, cloud computing, autonomous driving, offsetting week ad sales -- weak ad sales. eking out a gain. there was a net loss, the net loss was hurt by investment losses. baidu has stopped as of the calendar fourth quarter giving full-year guidance or revenue outlook. it is uncertain. ite, the affiliate of baidu, it lists in the united states, it posted its first profit net income gain since the ipo in 2018. ite, the netflix style video service of china, it is on aggressive cost controls. shery: stephen engle giving us the nuances of those chinese earnings.
7:42 pm
up next, the world bank joins to discuss education accessibility, jobs, and income in developing countries. this is bloomberg. ♪ another crazy day? of course it is—you're a cio in 2022. so what's on the agenda? morning security briefing—make that two. share that link. send that contract. see what's trending. check the traffic on your network,
7:43 pm
in real time, with the next generation in global secure networking from comcast business. lunch? -sure. you've got time. onboard 37 new people, with 74 new devices. does anybody have any questions? and just as many questions. shut down a storm of ddos attacks. protect headquarters and the cloud. with all your data on the nation's largest ip network. whoa, that is big. ok. coffee time. double shot. deal with a potential breach. deal with your calendar. deal with your fantasy lineup. and then... that's it? we feeling good? looks like we're feeling good. bring on today with comcast business. powering possibilities™. haidi: the global destruction to
7:44 pm
education caused by cobra 19 is without parallel, it effects have been severe, widening the educational divide between the world's richest and poorest children. let's bring in mari pangestu. we are also joined by our policy editor, kathleen. more than two years into this pandemic, give us a snapshot of how the bad the situation is in terms of education for the poorest children out there. ms. pangestu: you showed a number that we use often. what we call the learning poverty, from around 53% before the pandemic to now around 72%. we know there has been -- on average, kids did not go to
7:45 pm
school 285 days. in some regions like south asia, it was like 480 days. the impact has been unequal with lower income households, with those not being able to access remote learning, 30% of schoolchildren were children of school age did not have any remote learning during the lockdown. this is a huge loss. shery: we are now seeing restrictions being lifted, more countries reopening. when you take a loss of this magnitude in education among children, how long does it take to recover from it? ms. pangestu: that is a really good question. we know the cost of not addressing and doing the catch up. we can put a number to it, it is
7:46 pm
$17 trillion worth of lifetime earnings if we do not regain these learning losses. that is like a lost decade of development. we don't know how long it will take to be gained but we know we have to do it now urgently. the first thing to do is get kids back to school. we do see high dropout rates, especially for adolescents. it is not clear whether it is more girls or boys, it is girls and boys that have dropped out. the first thing to do is get kids back to school. have schools that are safe for kids to come back to school. programs to get kids back to school and have them stay in school is a lot of the programs we are working on with many countries. it can be done through school feeding programs, scholarships, linking social assistance programs to making sure that you
7:47 pm
get the cash transfer if you get your kids to school. how do you incentivize kids to come back to school? secondly, how do you regain learning losses? it is not just the two years that they lost from not going to school or not having remote learning, also what they forgot. so they have specialized resources, training of teachers, and looking at the differentiated needs of the children. haidi: what are the broader and longer term impact on the economy when it comes to output, when it comes to lost productivity and the structure and progress of any given labor market? ms. pangestu: that is a great question. the loss of human capital, we can put a number to it, as i said. it is about 10% of world gdp.
7:48 pm
it is a huge economic loss. where does it come through? it comes through lower productivity. you have a lower capacity, that leads to lower growth for your economy and the ability for you to diversify your economy also becomes lower, especially as economies have to go digital or go to new areas of development. i have been on visits to countries and skill shortage is a definite issue that countries are facing. haidi: we know women and children particularly in disadvantaged countries and situations were adversely affected by these pandemic losses. what does the data tell us about the pace of recovery if you split it down by gender?
7:49 pm
ms. pangestu: we know women were more impacted because they lost jobs, they were more likely to lose jobs, they were more likely to be affected anti-stay home and take care of children. they were also more impacted because of health services for women as well as children, immunization went by the wayside as health services focused on the pandemic. then we were seeing early marriages, high teenage pregnancies, violence, and so on. whether it's returning to school or skills upgrading, it has to be inclusive to make sure that women and youth and marginalized groups are paid attention to, how you make sure they are in the program. haidi: a couple more questions,
7:50 pm
one is about connectivity. there is a vast inequality among people around the world, certainly around kids around the world. how bad is that? what needs to be done? ms. pangestu: one third did not have any access to any kind of remote learning. so the digital divide that you see in the world is very much going to disadvantage those who are not connected. the number four worldwide, i think it is 43% of developing countries don't have any kind of digital connectivity. in africa, the number is 70%. we have to address the issue of connectivity to have access to digital connectivity. that is the first issue. that is infrastructure, having telecommunications infrastructure, and having the device.
7:51 pm
and what you do with the content? and the digital literacy, how do you use that content for education, for doing better in your business, for skill development? this is a big challenge that we are working with many countries to try to develop these programs. kathleen: finally, money, funds to do this, the poorest countries hit the hardest by covid are indebted. where are the funds going to come from to get this done? do you see the richer nations ready to step up and provide some of this? ms. pangestu: the way we see it is, first of all, the country itself must have the political commitment to identify what are the resources they can have within their fiscal constraints to privatize education? it has to start from the
7:52 pm
political commitment of the country. then how does the international community come in to provide more resources? it can be directly for education, but can also be for budget support to ensure the fiscal space is there to have other priorities that countries have, whether it is health or basic support for social protection or social assistance on top of the education. it has to be a holistic approach. more importantly, how is the funding use? it has to be used effectively, not just going to education, but we need to use this opportunity to transform the education system where we focus on learning outcomes. we need to focus on not just the
7:53 pm
amount of resources, but what the resources need to be used for. it is on many fronts. it should be the opportunity to transform the education system in the short run, medium run, and longer run at all levels. haidi: we appreciate your time with us today. of course, students and parts of china have been learning at home as well for as long as three months when it comes to shanghai. they are looking for some schools to reopen next month. we are getting these covid numbers of 264 local covid-19 cases for shanghai. no new cases outside of quarantine, no community transmission found for a second day as numbers continue to move in the right direction, but at the same time, attention shifting to the nation's capital
7:54 pm
where we are seeing more risk of further outbreaks. lots more to come. this is bloomberg. ♪
7:55 pm
>> some of the stocks we will be watching, japan's travel stocks in the spotlight after the prime
7:56 pm
minister announced some foreign tourists will be allowed to visit from june 10, this is the country reopens slowly. >> energy related shares could move. prude showed signs of continuing decline, although we are seeing crude move muted in the asian sessions. we are also watching suppliers for apple, the company planning to keep iphone production flat in 2022. sources saying the company is asking suppliers to assemble 220 million iphones, about the same as last year. we are watching samsung because local media says they will be reducing smartphone production. that amanda being hurt by covid-19. we are seeing beijing report 29 local covid cases for may 26. the market open in seoul and tokyo our next. this is bloomberg. ♪
7:57 pm
7:58 pm
this? this is supersonic wifi from xfinity. it's fast. like, ready-for- major-gig-speeds fast. like riding-a-cheetah fast. isn't that right, girl? whoa! it can connect hundreds of devices at once. [ in unison ] that's powerful. couldn't have said it better myself. and with three times the bandwidth,
7:59 pm
the gaming never has to end. slaying is our business. and business is good. unbeatable internet from xfinity. made to do anything so you can do anything.
8:00 pm
8:01 pm
shery: welcome to daybreak: asia from new york. haidi: asia's major markets have just opened for trade. top stories -- asian stocks may get a boost from wall street as u.s. economy remains resilient. health officials in china issue contradictory directions on whether covid zero or broke is the priority. and alibaba posts and earnings
8:02 pm
beat -- an earnings beat. shery: starting the sessions higher for japan rising for the first time in four days. the japanese yen you did. not a lot of movement. the currency trade in a narrow range but we are watching travel stocks because of the announcement at the government will be opening the country for foreign tourists starting june 10. giving travel stocks a boost. we are watching gbg's that dropped in the previous session because of a supply. we are watching cpi numbers out from tokyo. 1.9% growth year on year slightly below expected number is. an indication of what we could see on nationwide prices going forward with the boj's 2% inflation target. we are watching apple suppliers and japan and south korea.
8:03 pm
we had seen the kospi losing ground in the previous session but we are watching the korean stocks, apple suppliers -- there you go. we are hearing samsung could be reducing smartphone production because of weaker demand coming from local media. that is one stock we are watching. we are watching the korean wan strengthening. we have seen a lot of weakness for the korean wan recently but we continue to watch of the strength at 1260 can be sustained. haidi: take a look at how we are shaping up in the early minutes of trading in australia. seeing a slow start given we had declines of about 0.7%. we are watching some of the miners after we sell metals seeing a third day and decline along with zinc and tin and a weakness in iron or over these concerns over chinese economic
8:04 pm
growth deepening. we are seeing the aussie dollar fault ash finding momentum. end of month consolidation for the u.s. dollar lending stabilization to the dollar paris. kiwi stocks up zero point 7% as well as a gain in the kiwi dollar. watching australian retail sales. after we saw consumer confidence in new zealand take a step backwards. taking a look across the treasury curve -- u.s. treasuries heading for a third straight week of gains. particular interest in the seven-year auction, pretty flat at the moment. as in p futures also not showing -- snp futures not watching -- gas is poised for a for weekly gain ahead of the expected uptick in demand. and u.s. inventories falling
8:05 pm
this week as well. let's get more on the asian trading day. mark cranfield will have more for us. white are your expectations as we round out this day and the idea that we are getting more conviction, participation behind the rebounds? mark: a lot of relief particularly in the tech sector. alibaba and baidu had reasonable numbers in their earnings reports yesterday. a huge relief especially to china. we saw the government index -- more than 7%. that will have a decent influence on what we see in hong kong especially today. a lot of tech heavyweights trading there so it could be a decent start to the hong kong market as well. in nice bounce in s&p. we are going into a long weekend
8:06 pm
in the united states and it has been heavily sold for a long period. people do not want to carry those heavy positions over a long weekend. you have had a mini breakout in the s&p futures. i think you probably need to get some kind of context. we are still in a bear market for global equities. the fed has not finished. the headwinds to growth are still severe. in any bear market you can get considerable bounces within the context of that market. we are probably seeing a rebound that will go through month end and will last a little longer but it is early for people to get really excited and say this is the big turning point for equities. we need to see the fed be more consistent. shery: what about seeing something more positive coming out of china because of the news
8:07 pm
that he was even more vocal about how dire the economic situation was not to mention the dynamic on how to steer the chinese economy, that does not seem to be boding too well for markets. >> it is very confusing for investors. who do you follow? the president who wants to continue the lockdown on covid or the prime minister who is more concerned that growth needs to be boosted? it does not make it easy. it is one of the reasons why chinese equities in general have not been performing well. you will always get the optimists that say there is a significant amount of bad news that has been priced in. alibaba can still produce decent results so you are heartened to. the clamp downs on the tech sector appeared to be easier these days. so if investors are willing to believe that the chinese authorities understand the growth situation is dire enough
8:08 pm
to boost government spending. the measures announced recently. they still would probably prefer to see the leading politicians are on the same page. that is a missing part of the jigsaw puzzle. and investors see that everyone is moving in the same direction in beijing, that will help get sentiment back on its feet especially for foreign investors. they like to see the government and the monetary policy decisions are being made in unison. they don't like to see fractions. shery: mark cranfield, let's talk more about the president versus the prime minister. we don't see that often when it comes to the chinese communist party. bloomberg is hearing that the president is adamant about the covid zero policy and maintaining it but the premier, perhaps like the rest of the world is calling for a better balance between covid controls and economic growth. according to the bloomberg
8:09 pm
sources, this is leading to policy paralysis. what are we hearing? >> [indiscernible] shery: do you have us? what are you hearing from the ground in china? >> as you mentioned, it is confusion that exists. the premier had a pretty rare video call this week with thousands of cadres across the nation down to the county level so the people implementing the policies. he urged them to focus on economic growth and hid these targets. -- and hit these targets. the calculation is, who is in charge? the president or the premier? all indications are that xi will
8:10 pm
be around longer than le. the calculation is still getting rid of covid cases before you start ramping up economic projects. this is partly a self interested dynamic for everyone who is looking at their future and the communist party and how you get promoted there. haidi: at the same time, we are hearing -- seeing bolder statements from the u.s., antony blinken. you have the australian foreign minister making the new government's stance felt during her visit talking about the partnerships with no strings attached. is there a sense that the u.s. and its allies are looking to leverage the weakness we see in china at the moment? >> there is certainly that aspect to it. partly this is just the u.s. getting its ducks in a row after
8:11 pm
the donald trump administration. we are seeing joe biden doing what he promised to do which was to work with allies more and set up a cohesive strategy. the blinken speech overnight was part of that. framing the issue saying, we are not going to change china's behavior anymore. we tried that with the trump administration and it did not work so the strategy now is the focus on shaping the environment around china. that is why winning over the third parties, pacific nations and others, we will see a lot more engagement with the quad directing. all. there is a lot more engagement in a duff -- in a bunch of different forms trying to shape china's behavior that way to change the environment in asia. haidi: daniel with the details
8:12 pm
and you can get a round up of the stories you need to know in today's edition of daybreak. go to dayb and it is also available on the mobile. you can customize the settings so you just get the news on the industries in the assets that you care about. this is bloomberg. ♪ haidi: in the meantime, let's get you to su keenan. su: australia's promising aid and assistance to pacific nations with no strings attached. it appears to be a veiled jab at china. the foreign minister said australia vows to be a critical partner to the region. beijing reportedly seeking security and economic details. it has made good promise in analyzing sri lanka's economic
8:13 pm
situation as well as identifying policy priorities but it cautions any loan would need assurances that debt sustainability would be --. sri lanka wants a bailout program in place by mid june. to pakistan where the government is raising local fuel prices beginning friday to meet a key condition set by the imf. to revive its bailout program. the decision was made a day after a week of talks without agreement and pakistan needs a 3 billion dollar loan from the imf to keep its economy afloat and avoid a default. the fund had been pushing the country to avoid -- to remove fuel subsidies. japan lifting the ban on overseas tourists. beginning june 10, foreign travels on package tours will be able to enter the country and japan will double its capital --
8:14 pm
global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. shery: take a look at some the reopening stocks across japan. as we heard from the prime minister at the country will be opening up to foreign tourists. the opening up on june 10 will be pretty limited but this is still giving a boost to those stocks given that japan has been closed for the past two years. take a look at softbank seeing its best days since mid-may as alibaba sees and beads estimates web revenue and profit beating estimates. alibaba in the new york session had the best day in over two months and we know softbank has around a 25% stake in the
8:15 pm
company. we have been speculating on whether softbank would get rid of some of its stakes that we know it still has a pretty big holding at the moment and it is gaining ground. haidi: watching some of the apple suppliers as they said they would be keeping iphone production levels flat for the rest of 2022 about 220 million units this year. and we are seeing rivals from china suffering a tough first quarter a combination of supply chain snarls and weaker demand and the war in ukraine causing a sentiment shift. we heard from samsung that they would be reducing smartphone production on weaker demands. looking at some of the samsung suppliers that would potentially see a move as well lowering smartphone sales. samsung, 10% on week manned. we had that report earlier. still ahead, battery problems
8:16 pm
plaguing an indian upstart. dr. lee land -- dr. lee jan will save his view. giving views, ronald keung. this is bloomberg. ♪
8:17 pm
8:18 pm
8:19 pm
shery: we will be watching china's tech shares when trading kicks off in china. alibaba and baidu soared in new york after both companies defied china's covid lockdown. softbank also. let's bring in stephen engle in hong kong. investors seem to be liking the results. stephen: there is the good news in these results and then there is the unknown news in the current quarter. the good news is there has been a lot of negative news bait into the stock price. alibaba had been down about 30% year-to-date. we know the regulatory pressures since the autumn of 2020 has wiped market value. on revenue, we were expecting consensus being of 7.1%. in the fiscal fourth-quarter,
8:20 pm
the calendar first quarter for alibaba which is before the pandemic and lockdowns in shanghai, the beat was revenue gain of about 9%. and on adjusted net income if used about the investment losses, we had a beat on net income. it is the guidance going forward. you have a highly competitive environment with several companies making gains on the market share with alibaba but the uncertainty with covid and lockdowns and the hammering on retail sales and consumer sentiment are the big unknown. and for the first time, alibaba, the ceo foregoing giving guidance, revenue guidance for the current fiscal 2023. bring up the quote he says -- there are risks and situations that are out of their control.
8:21 pm
that is why it would not be prudent to give guidance going forward. that is the unknown news that the market might have to digest the next time around when we get second-quarter results. haidi: stephen engle goldman sachs hosting the technet conference in asia, an event that brings together technology entrepreneurs and investors. our next test says in a rapidly changing environment, the outlook in china's internet sector remains promising. ronald keung joins us now. before it looks promising, will the second quarter be worse than what we saw from these earnings? ronald: we hosted around 150 companies at the conference and the message overall would be that companies have to preserve more capital in this rising rate environment and competition is
8:22 pm
stabilizing across the board. around half of the china internet companies that reported so far, a quarter is healthy, market focus is on the second quarter guidance which would factor in the weakness in april with the lockdowns and as we published our report in april, we expect the second quarter to mark the growth for companies and depending on the covid policies and the government's policies in helping to drive the consumption confidence, we expect easier comps for the china internet companies especially in the september-december quarter driving a year on year growth. a turnaround for the china internet sector would ultimately have to bank on fundamentals driving in multiple expansions after a year or a year and a half of underperformance of the china internet sector.
8:23 pm
haidi: is there stability and it comes to the regulatory side? ronald: 2021 we think was a year of a lot of new rules and policies -- the ultimate goal was a healthier internet sector with healthier competition. 2022 is the year of implementation. we will still see policies pushed out. the surprises hopefully will be less than last year and last year every regulation that came out, the market was very concerned and had big moves downwards. this year the market is more anticipatory. could there be positive comments? we can see the shift and therefore on the china side we do think policies should be more predictable but there will still be new implementations of these. shery: regulatory issues aside,
8:24 pm
during the pandemic, we saw these tech companies be the darlings for investors given people at home spending online. what are we seeing this time around with the lockdowns? ronald: yes, in 2020, the boost to online shopping in groceries and this time around with omicron, there are more disruptions to the supply chain. one of the biggest e-commerce in-house logistics operations, a big disruption in their operations in april in the shanghai city. capacity down to 20% of normal. drew april, it has improved back to 80%. as a lot of e-commerce companies have seen, as the supply chain recovers, the next important factor is how consumption demand will trend. the upcoming june 18 shopping festival will be the first gauge on whether chinese consumers are
8:25 pm
ready to engage again. from the logistics side, from company participation and merchant participation, these are now at record highs and june will be the first chance to see whether chinese consumers are spending. shery: ronald keung, good to have you. we will have more on daybreak: asia. this is bloomberg. ♪
8:26 pm
8:27 pm
shery: here's a quick check of the latest headlines. it has agreed to buy cloud computing company, vmware for $61 billion turning the chipmaker into a bigger forest in software. the transaction represents about 44% premium to the valuation before may 20.
8:28 pm
japan's biggest steelmaker is warning of more price hikes in a blow for industries -- for carmakers. new bonds deal -- nippon steel says it needs to cost on costs. it has booster prices to record levels in the last year. coming up, we speak to niu technologies, the ceo, dr. yan li. as we see covid restrictions around china. this is bloomberg. ♪ (annenough with the calorie counting,
8:29 pm
carb cutting, diet fatigue, and stress. just taking one golo release capsule with three balanced meals a day has been clinically proven to repair metabolism, optimize insulin levels, and balance the hormones that make weight loss easy. release works with your body, not against it, so you can put dieting behind you and go live your life. head to now to join the over 2 million people who have found the right way to lose weight and get healthier with golo.
8:30 pm
8:31 pm
haidi: we do have some news crossing the bloomberg. the u.s. is planning talks with taiwan in the latest test with beijing. the u.s. and taiwan are planning to announce negotiations to deepen economic ties. the talks will focus on enhancing economic cooperation and supply chain resiliency. they are said to fall short of a traditional agreement but will likely include areas of trade e. the elements are similar to the
8:32 pm
pillars of the 13 member indo pacific framework where joe biden had announced during his visit to tokyo earlier this week before the quad meeting. this will be another challenge to the u.s. relationship with beijing which has already cautioned washington on the relationship with taiwan. this is an effort to elevate the relationship according to these people and will go beyond existing discussions under the trade and investment framework between the governments. it comes as we saw antony blinken taking aim at the chinese president in a speech vowing to reshape the global order and to invest and to bolster allies and compete with the world's second-largest economy in china. look at u.s. futures. treading water. as we see a pretty good move across the rest of asian markets trading supported by the rally we saw overnight. u.s. futures trading sidewise at
8:33 pm
the moment. nasdaq futures fairly flat appeared looking at potential gains when it comes to china tech. given the boost we had from better than from the likes of alibaba and baidu. dow jones futures a little bit to the negative amid a broader upside sessions in asia. su: we start with u.s. secretary of state antony blinken who has taken aim at the chinese president during a speech laying out the administration's approach towards china calling beijing the most serious long-term challenge to the international order saying washington will seek to influence china's behavior by shaping the world around it. you also accused xi of undermining the international system. >> rather than using its power to reinforce and revitalize the institutions and principles that enable success so other countries can benefit also,
8:34 pm
beijing is undermining them. under president xi the ruling communist party has become more oppressive at home and more aggressive abroad. su: china and russia have you towed u.n. resolution sponsored by the united states for a tough new sanctions on north korea because of its recent missile launches. this is of her serious division on north korean sanctions among the five permanent members. china says sanctions will make the situation worse and the u.s. instead should resume dialogue with the regime. president vladimir putin says he is willing to facilitate grain and fertilizer exports but only if sanctions on his country are lifted. he did not specify if he was referring to russian exports are those from ukraine that have been stopped by moscow's blockage of the port. u.n. has accused russia of waging war on global food security. monkeypox outbreak in the u.s.
8:35 pm
has expanded to include nine cases in seven states. this includes new york city where one presumptive and factor has been identified. most people in the city are not at risk. authorities also say monkeypox is being detected in countries where the virus does not normally circulate. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. shery: japanese carmakers because we are hearing from japan's steel giant, nippon steel that they will be increasing their costs. they are warning they will push through more price hikes which could be a blow for carmakers and also for industries already grappling with challenges. some could absorb the higher cost but carmakers are struggling with supply chain
8:36 pm
disruptions with higher commodity costs broadly not to mention issues with the currency changes as well. that's go from four wheels to two. our next guest is a speaker at this week's tencent conference. niu technologies ceo dr. yan li is with us. thank you for your time. tell us a bit about some of the challenges and how you are trying to overcome them. dr. li yan: i think for the first quarter, we have had challenges with the resurgence of covid. january and february, sales were up by 90% but in march we experienced a 24% decline as covid began to break out.
8:37 pm
our sales are more constituted and the popular cities so the covid impact has forced our sales down. that is the situation we are facing now. we are very optimistic with a rebound as we observed when covid first hitch. we had a huge drop in q1 2020 but had a huge rebound. the electric scooter is a safer and easier transportation method. q2 and q3, sales grew by 20% and that year. we are optimistic with the post-covid numbers in china and secondly, with the international market, we are expanding our product portfolios from electric mopeds to electric motorcycles and electric scooters and in bikes. the international market is giving positive feedback. we made a product for las vegas and it was well-received.
8:38 pm
our launch has been popular in europe. it has been a bestseller for two weeks in a row. in the first quarter, the china market -- shery: all of the optimism and positivity on the international markets managed to offset some of the cost hikes we are seeing. we were talking about steel and lithium as well. dr. li yan: i think the international market has helped us in managing the recent shortage -- short-term decline in the china market. as you mentioned about the cost, yes, the raw material increase -- the fast price increase of raw materials has put a challenge on our gross margin. similar to what others are experiencing in the industry. we saw a 40% increase on lithium batteries.
8:39 pm
we are in the electric scooter business so the lithium battery accounts for 35% of our cost. we are looking at new products with improved performance and features. having the price premium will enable us to offset the raw material price increase. currently, we see we are able to manage what makes an impact on our gross margin as opposed to the pure impact which would be a 10% hit. now, we have brought it down to 1% or 2%. we continue to bring out new products. haidi: what do you think the biggest opportunity is for markets here? dr. li yan: one is we continue
8:40 pm
to see a general trend towards electric vehicles. for china, as an example, the penetration of the environment has risen from 5.4% in 2016 to 20 plus percent in 2020. the penetration rate increased four fold in eight years. second, for international market, and post-covid, there is a rising need for personal transportation. we see sales of kick scooters and in bikes exploding 4x in europe and the united states and those are the new categories we have entered this year and we hope they will help us drive the next stage of growth. shery: niu technologies ceo dr. li yan joining us from beijing.
8:41 pm
the trend sitting at a seven month low. this is bloomberg. ♪
8:42 pm
shery: let's take a look at the market open. in hong kong and mainland china. stocks getting an early lift after the golden dragon index jumped more than 7% on the back
8:43 pm
of earnings from alibaba. for more, we are joined by sophia. are the positive earnings news enough to offset the bearish economic outlook we keep getting from policymakers? >> i think when you look at the moves in the golden dragon index overnight and alibaba shares up 14% in new york, it shows how low a bar it is for china tech to do better than expected. a 9% revenue growth for alibaba and 1% revenue growth for baidu. citigroup analysts calling this a really for the market because even though these companies are unwilling to give guidance for the rest of the year, they can still grow. we are not getting double digit growth of the previous decade but the companies are still doing business on the bar is so low there is still so much short interest in the market, you see these huge moves higher.
8:44 pm
the unraveling of the bearish positions will feed into the hong kong session today so you can expect a big recovery in the hang seng tech index at the open. haidi: what about further downside for the chinese currency? >> that is all about the economy. the chinese currency was completely overvalued last year. the basket was above 100 for most of last year appeared the yuan was so strong against the dollar the pboc had to rein in currency strengths so what we are seeing is a rebalancing of the currency also in relation to its trading partner currencies. this is not a bad thing for china. it reflects the dynamics and the economy. we had a dire warning from the premier saying china will struggle to grow if a local -- if local governments do not take action right now. more downside and most analysts and economists are expecting further rmb weakness and it is
8:45 pm
what we could see this year. haidi: our chief china market analyst sophia in hong kong. consumers may not be able to keep absorbing price hikes. the ceo has shared his concerns with bloomberg davos adding wage gains must keep pace with inflation. >> we announced increases of some key brands both our soft drinks and alcohol beverages. and, i don't think our clients and our consumers are happy with that. they can afford at this moment but i'm not sure around christmas time because the wage hike is not enough. but things are more complicated. things -- there needs to be more than a 10% increase in prices.
8:46 pm
we can pass to consumers may 5%. >> because you are worried they would go to a cheaper brand? you have some very high-end drinks. can they not afford a 15 percent or 20% hike? >> the big brands, our premium brands, we have already raised the prices but i am talking about the standard products like beer, water -- so, people are accepting to some extent but i don't think 10% is -- it is almost impossible to convince consumers. >> [indiscernible] increase prices again. to what extent? >> except for the branded whiskey. however, we have to think about
8:47 pm
what to do with the clients because retailers are resisting not to accept any further increase in prices. we will be fighting. i don't know what will happen. >> where did the pressures come from? shipping, packaging, the plastic bottle -- do you see this inflationary pressure for the foreseeable future or are there certain parts of your supply chain, prices going down? >> it depends on the chinese policy of zero covid. for example, we found a lot of shipments of beer. >> they are sitting there. >> right. i hope the lockdown in shanghai will be used around -- eased around mid june and then things will be better because the total demand is the same but this kind of -- is shutting down any
8:48 pm
flexibility of the global supply chain. >> what are you positioning for? are you positioning for a recession? expectations are for the u.s. and you have a big presence there. >> maybe early first quarter or's second quarter of next year. we have to be careful to increase prices. we have been increasing prices of premium and ultra premium brands but it comes to the standard -- i think we are in crisis to raise prices. shery: coming up next, we will speak with an open-source blockchain showcasing 20 digital artists at the event. this is bloomberg. ♪
8:49 pm
8:50 pm
>> we have just seen in the last few weeks, exactly the kinds of risks we have been talking about for some time. a run on the platform. a collapse in the value of a stablecoin. a stablecoin moving up its
8:51 pm
one-for-one value because of a lack of transparency. haidi: that was the fed vice chair on the risks of stablecoins after the spectacular roller coaster ride we have seen. take a look at crypto today. we have quite a bit of stabilization particularly when it comes to bitcoin. a little bit of downside. just under the $30,000 level where we have been sitting for quite some time. ether up 2.7%. we watch the crypto route as investors reprice the idea of a true risk asset or whether it continues to see the correlation with rod or risk assets especially in the u.s. and a lot more volatility. sales of arts and collectible and fts doubled from 2019
8:52 pm
according to the art basel and ubs market report. tezos. catherine hot long -- katherine nye ong -- kathleen ng is with us. tell us about the demand. kathleen: thank you for having me. good morning and good evening. the nft market is growing rapidly and we are seeing great appetite for nft's in the art and culture space especially in the asian region. four out of five of the top countries are from apac. we are seeing a lot of demand for digital artwork in china, singapore, hong kong and the philippines. we are proud to be showcasing
8:53 pm
artwork from artists from these parts of the world, across asia at art basel hong kong and at the tezos exhibition this week. shery: it says you are an energy efficient public blockchain. how so? katherine: energy efficiencies are based on the design of the consensus mechanisms. each they are one blockchain. for tezos we are based on proof of state model. that is the same profile of state model -- ethereum is also looking to merge into. tezos has gotten lucky because as an ecosystem, we have been working with this design from day one. haidi: when you watching the
8:54 pm
drama, what does that debacle tell you about digital asset ownership and some of the risks for investors? katherine: i think we need to make a distinction between collectibles and also art being displayed at our basil example. the collectibles market is all about proof of ownership, that you are part of an elite members club that grants you access to like-minded members. it depends on who -- it is kind of a who's who club. where as if you're talking about collectors that appreciate art that you see in galleries and established museums across the world, established art fairs such as art basel, there is a sense of suspect -- sustainability in art
8:55 pm
investments. shery: it was good to have you on. some of the stocks we will be watching in the markets in hong kong and the mainland when they open in about a half-hour, watch for the chinese tech stocks. those listed here in the u.s., alibaba and baidu among the top gainers given their earnings results topping expectations. we are also watching property stocks. the shanghai property exchange planning a meeting with a handful of developers talking about issuing yuan denominated bonds. builders attending include coventry garden and sci-fi as well. we also move -- as u.s. crude and gasoline stockpiles show further declines ahead of the summer driving season. we are keeping an eye on petrochemical -- petrochina and china petroleum.
8:56 pm
when it comes to keeping an ion things this weekend, perhaps a good thing -- happy friday, first of all. the top gun sequel is out. to be fair, i was not necessarily a top gun fan, but there has been so much talk about this movie that i am curious especially about the f-18's. they are not allowed to touch the controls inside the planes but tom cruise did get to ride them and renting those out from the military was around $11,000 an hour or so. haidi: we know he is a speed demon and he loves doing his own stunts but this movie is expected to earn his first $100 million domestic opening. they expect about 130 million dollars in the u.s. and canadian tickets over the weekend and that does not include the memorial day holiday. it would be one of the biggest movies of the last two years. i have to say that even i am
8:57 pm
wondering if this is a movie that i go back to sit in a theater for given that i have not been back to a theater since the pandemic. we head to the start of trading in hong kong and shenzhen. this is bluebird. ♪
8:58 pm
8:59 pm
9:00 pm


info Stream Only

Uploaded by TV Archive on