of relief across markets at least on wall street. we are expecting that reprieve to carry through to the asian session. the jobs print, a goldilocks number in terms of putting back on the table the prospect of said easing -- fed easing. haidi: the estimate had been for 240,000 so a lot softer than had been predicted by economists. perhaps the fed could have reason to cut as soon as september. >> let's take a look at how we are setting up here in sydney as we come online in just a couple of seconds. just a reminder, japan is closed for a public holiday today so we are seeing a few markets in fact shuttered on this monday session. sydney, you already out of the gates a little bit to the upside, about .6% and we are

seeing the impact across asian fx as well with that weakness in the dollar. the aussie dollar holding steady. we are seeing brent crude trading a little bit higher. when it comes to oil, we are continuing to really monitor what we are seeing with that demand-side concern. saudi arabia jacking up their prices, pushing a little bit of upside momentum there. that was the biggest weekly drop for crude since february so still pretty shaky when it comes to the demand side of that equation. annabelle: that is right and it's going to be quite an interesting session as well. we got a number of markets that are shut so far. there is japan, korea, and thailand in focus as well so perhaps when they do come back online, you will see the ketchup trade given the big run-up we had in u.s. equities on friday. the s&p 500 gaining more than 1.2% and as you said, it was

that collective sigh of relief perhaps that the fed could have reason to cut sooner rather than later. talk about last week, we had the prospect of zero fed rate hikes at all for 2024 very much in play. haidi: as we spoke to many economists including brian jacobson just in the last hour, there is that sort of fear as well as at how quickly we could see further deterioration in the labor market which could then present a new kind of type of narrative, right? the other thing we are watching out for is of course the reopen in china. we heard enough of the labor market holiday so we are expecting that ketchup in terms of what it has missed out on with that hong kong equity reality -- rally. we heard from the u.s. treasury secretary, janet yellen, over the weekend, acknowledging the chart moves in the value of the yen last week but she did call the reports of japan's intervention a rumor.

let's bring in garfield reynolds who leads our markets live asia coverage. this is interesting because we know from crunching the numbers in our bloomberg analysis, probably not a rumor. garfield: nobody in the market believes it is a rumor. everybody, even before the numbers came out to confirm it, when you looked at the size of the move, the rapidity of it, the way it took place, everybody was saying this is almost certainly intervention and then we got the boj current account data which made it very, very hard to say this was anything but intervention along with the, you know, sort of coy commentary from japanese officials. they did not say it wasn't intervention. they just did not say it was so to some extent, i think janet yellen is responding to that part of it. the japanese officials are not going to say, yes, this was the intervention.

it behooves her kind of not to make them look foolish by saying, yes, this was intervention. my colleagues over there are just, yes, gilding the lily, so i think that is part of it. and for whatever reason, you know, japanese officials are coy about was it or wasn't it an intervention? >> and garfield, switching tack a little bit but as haidi mentioned, one of the big focus is today alongside the japanese yen of course is the reopen for chinese equity markets following that extended rate for the golden holiday period and during that time as well, it was a pretty healthy few sessions for hong kong stocks so perhaps that points to some moves to the upside. garfield:garfield: well, it would be very peculiar if chinese equities did not rise at least initially. as you say, hong kong had a very

good couple of days when mainland shares were shut and some of the reasons for the hong kong rally, you know, were linked, you know, back to the mainland. there is increased optimism about property stocks that they have seen the worst and adding -- aiding all of that was the politburo meeting which occurred on tuesday and was not announced until after chinese markets had closed for the day. in fact, for the coming three days, so this is chinese markets first chance to respond to the politburo so unless offshore investors see something radically different from what hong kong-based investors were seeing, yes, logically, chinese shares should come higher and there will be a lot of interest in the services pmi to come later in the day with hopes that

that will reinforce what is mostly -- what has mostly been a more optimistic outlook for the chinese economy. there is also the potential that , you know, some of the hint at easier policy that came out of the politburo meeting have more of a chance of coming to fruition now that japan has stepped in to help out everybody other than the dollar by intervening to stop the yen's declines because the yen's declines were hoping to weigh on the yuan so the pressure is less on the year on -- you want to depreciate and that makes it easier for china central bank and chinese authorities in general to look to set easier policy because they don't have to worry that they will pull out all the stops to prevent, you know, serious yuan depreciation because that pressure that they had been feeling from what was going on with the yen has decreased.

>> that was garfield reynolds who leads our markets live asia coverage and let's get more on the outlook for markets. chief equity strategist gina adams. garfield was telling us about the dollar dynamic very much in play and we have seen that softness coming through in these expectations again changing around what the fed is likely to do but it seems like with the latest that have economic readings particularly around the jobs numbers, it seems like bad news is good news for equity markets once again. how long do you see that persisting? is that what you are seeing as well? yes, i think it is a little bit more mixed than that. frankly, friday's game was largely driven by tech stocks on the heels of an incredible by apple. we are in the midst of earnings season and companies have generally beat expectations profoundly, excuse me, especially the stocks which are of course the great majority of

the s&p 500 earnings stream right now, so i think friday's response was not just to the week job numbers but also to the apple report and the persistence of beads throughout the tech space in the earnings season but certainly, to the degree that we can get some column in the bond market which certainly sparked some of the corrective process we have been through in the equity market, that would be a welcome thing and so i think it is a combination of those two factors that are really driving stocks. it is not all about the fed and all about the economic data. >> i suppose the question is also if earnings has been such a great distraction in terms of the outperformance you pointed out, at what point do you see may be investors shifting focus to the concerns over a broader slowdown with the economy and see the revival of the kind of stagflation chatter as well? gina: i think you would actually have evidence that there is a slowdown in the broader economy to justify that rotation. we have not had that. frankly, what we have had is a

reset of expectations so far this year. at the beginning of the year, analysts were forecasting growth but the economists were forecasting a shrinkage in broader growth, forecasting gdp to slow down materially as well as inflation to slow down materially and that allowed for the beats in the economy to really filter through to the equity market. now, we are sitting at a point where economists are looking at gdp growth that should be close to gdp growth printed in 2023. that implies the expectations bar has been reset and it does not necessarily mean that the economy is weakening. it is just that expectations are higher and it's harder for the economic numbers to beat those expectations and that is what we are seeing. broadly, what you do see as consumer sentiment is still off of its lows and even manufacturing were the early signs of the many shearing surveys are improving. certainly, the job market has weakened attached over the past month -- a touch over the past month. you have somewhat neutral

economic conditions relative to earnings conditions that are improving materially and the thing that you have to remember is that earnings drive stock prices. while the economy is peripherally important, what is most important is the companies themselves are posting earnings growth and that ultimately is what creates the value in equities. >> we have seen mention of currency strength in a number of earnings reports and on the flipside, we have seen the weakness being mentioned across asia earnings. do you see the strength of the dollar and the impact on what we see in corporate america persisting as well? >> yes, i think it is very mixed and you have to be very careful not to paint movements in currency with one big broad rush on the equity market. certainly, there are stocks that are heavy importers of product that welcome a dollar game. it means that their prices are going to be somewhat -- price growth is somewhat minimized. input cost growth is somewhat

minimized and they have martian growth potential when the dollar is rising and it's important to remember that is the vast majority of companies in the s&p 500. they are net importers, not net exporters. for the net exporters which are some of the bigger companies in the s&p 500, dollar gains to the degree that they are somewhat robust or extreme, can become problematic. i would not say at any stretch of the imagination that the current the is driving earnings trends in the u.s. right now, but it is something to watch. certainly for some of those bigger stocks with some export sensitivity. most importantly, what is happening with broader growth, whether or not we are getting demand growth, market share growth, whether or not broader economic conditions in europe, china, and the rest of the world are improving or deteriorating and we are generally seeing is not a lot of deterioration and not a lot of growth so somewhat neutral growth conditions with dollar gains that have been relatively minimal and not

particularly robust. they are pretty good conditions for u.s. stocks but i do think you have to be very careful not to paint the index with one broad brush and if you look over the long period of time, the correlation between the s&p 500 earnings stream and the dollar is close to zero so you have to be really careful. look at stocks and sectors specifically. in the index at-large will not show a whole lot of sensitivity to dollar moves. >> carb bloomberg intelligence equity strategist with us there. take a look at some of the early movers in sydney. qantas is one we are watching. a sigh of relief in terms of this elongated drama over fake slides. it has been dominating a lot of the negativity as well and we have seen a bit of a resolution on that. if they paid that $100 million fine to set all the ghostlike claims there and compensate tens

of thousands of passengers to resolve those plans that had basically already agreed to cancel those and decided to cancel those flights, that this is an agreement with the competition watchdog. between $225 to 450 aussie dollars to more than 86,000 impacted customers. also watching westpac as well. we have those numbers out. a real mixed bag because we have the big buyback with the dividend even as profit continues to decline. the buyback program was boosted and investors got that special dividend, offsetting the profit that met analysts expectations. to the income down 2.2 billion u.s. dollars. >> coming up, we are at the bnp paribas second annual ev and mobility conference in hong kong. the deputy head of global markets joins us exclusively, next. this is bloomberg. ♪

>> bnp paribas is holding is global mobility conference here in hong kong and it brings together influential industry figures and market-leading analysts to discuss the future of ev's and its cross over the event where our chief north asia correspondent, stephen engle, fresh from the beijing auto show and standing by with our first guest this morning, steve. stephen: i have been

totally on the eve the front, coming back from the beijing auto show and it was an eye opener to see the chinese ev makers and how much they have advanced technology, capacity, as well as their capabilities over the last four years since the last time they held the beijing auto show. talk about this more as well as the financial situation here in the asia-pacific is the deputy what do you -- let's talk about this first and then the bank operations in asia. what do you think the opportunities are in the space after what has been winter over the last six month or so? >> thanks for having me on. first of all, great to have bloomberg with us on the floor here today and i should compliment you for organizing

the sunshine here in hong kong. it has been a little bleak. what isn't bleak is the opportunity in the space. we know the world is focused on ai. it is natural. it has been a strong performing sector but here come our researchers truly believe there are some incredible opportunities in the ev space and we are here today and tomorrow, actually, with some of our most important clients to talk specifically about those and we are following hard on the heels of the incredible automotive show in beijing which i'm very jealous you were out because i did not get to attend. stephen: hong kong obviously plays its role as the capital raising center of china but also for a conduit into china and these companies. we have seen a lot of ev makers and there's probably going to be consolidation and mna deals and i know bnp paribas was involved in, i believe, the venture with renault, so you have already had some exposure there.

what kind of mna in the ev space and also if you can see ipo's coming down the pipe for hong kong in the ev space? stephen: bmp is committed to carbon transition. this is a great subject for us to talk about. you highlight some of those opportunities and the opportunities are in consolidation for sure but they are also in manufacturing efficiencies and battery technology and over the course of the next few days, we are going to be talking about all those subjects with some of the leading experts. we have byd on the automotive side among many others. we will be diving into those themes with our most important clients here. stephen: it's not just china. that's talk about what you are doing in the asia-pacific. a bit of a different path towards china. we have seen some of the wall street banks like jp morgan, morgan stanley, goldman sachs, over the last couple of years, pulled back because the deal --

there has been a dearth of deal flows and look, there are some barriers -- protectionist barriers happening with china and the united states, that bifurcation but you have gone back into china after exiting 17 years ago. can you give me the justification for that? brian: sure. there is a lot going on globally and in the region. we are righted by our clients. we are seeing a lot of our clients looking for some diversification in their counterparty relations. bmp stands out as one of the leading european banks if not the leading european bank and we are happy to serve our clients and their needs here in asia, in china, wherever it is, actually, but that need for diversification, which is gradually and gently are expanding into that where we see opportunities to help them. stephen: where do you see the

best opportunities through the securities venture you are going into and what kind of hiring are you talking about? brian: today is a great example of that. we are cautiously expanding within the equity franchise, picking subjects that we know well, that our team in europe know well, where we can bring the expertise to our clients here in asia. the clients here today, in fact, there's over 700 individual clients here with us today, representing 150 investment firm to spend time with 50 companies and then from all over the region. some people have traveled in from all over the world so we are hiring into that cautiously. stephen: the recovery, if you want to call it that, in the equities side, it is starting but we don't know how long the legs will last, obviously. so i would assume this securities venture will focus on the brokerages and essentially

wealth management as well as may be less on investment banking or what? stephen: that securities license, we were very pleased to be granted recently and it is a centerpiece of our research strategy in the region as we grow the offering that we are going to be providing to clients . today's event and the focus on ev is an excellent example of the sorts of can offer expertise imported from europe if that is what is required. a lot of that today and we are going to be bringing that to our clients in region and that might necessitate us to hire from the edges which we might be doing. stephen: how do you see the advantages your bank has at a time -- let's face it. we do have xi jinping in paris

for a two day visit. you are a french bank and you vaulted up the table in 2023 to number eight in the mna space. i mentioned the venture that you were part of. is this a sweet spot for you right now given the geopolitics as well? brian: geopolitics is complicated for sure. we can go back to that diversification point. whether they are hearing in china, brought her a share, or around the world, they are looking for bnp to be a more meaningful counterpart. they would like to see or like to have stronger relations with a european provider and we are really happy to fill that role and we are going to be looking for opportunities such as this space to do that more. it is a big focus for us. stephen: thanks for having us here. thanks for opening your doors and we are going to be talking to a lot of your guests. hundred 50 plus different guests coming here.

we will send it back to you as we kick off our coverage of the conference here in hong kong by bnp paribas. >> we will have much more from steve from the bnp paribas ev and mobility conference. they join us later this hour. more to come here on daybreak asia. this is bloomberg. ♪ tamra, izzy, and emma... they respond to emails with phone calls... and they don't 'circle back', they're already there. they wear business sneakers and pad their keyboards with something that makes their clickety-clacking... clickety-clackier. but no one loves logistics as much as they do. you need tamra, izzy, and emma. they need a retirement plan. work with principal so we can help you with a retirement and benefits plan that's right for your team. let our expertise round out yours.

>> you are watching "daybreak asia." some of the latest geo political headlines. israel has closed a humanitarian crossing into gaza after a rocket attack by hamas. three others seriously injured. the armed wing of hamas claimed responsibility for the attack. it came as talks in egypt on a

potential truce ended inconclusively. israeli officials have rated al jazeera's offices in jerusalem hours after the cabinet production down the network's local operations. al jazeera's broadcast and access to its website have been blocked throughout israel. the organization denounced the move, calling it a criminal act that violates the right information. russia launched weekend drone attacks across much of ukraine hours after the ukrainian president said his forces had shot down another russian fighter jet and officials say those were followed on sunday by a barrage of guided bombs targeting the city of kharkiv. observers say russian ground troops continue to press their advantage in eastern ukraine while kyiv awaits new u.s. weaponry. they are in talks to lead a group of allies that would give as much as $50 billion to aid in ukraine. it would be repaid with windfall profits from frozen russian assets that are growing interest mostly in europe. sources say the plan is being discussed amongst a group of

seven nations with the u.s. pushing to have an agreement when g7 leaders meet in italy in june. annabelle: haidi, sticking with that region because we are checking out futures in your upcoming online here and pointing to further gains at the open later today, did actually see a positive session friday for european stocks as well and i.t. is really the standout sub index there. your stocks index getting more than 2% on friday but we will have more ahead on daybreak asia. 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.

life's daily battles are not meant to be fought alone. - we're not powerless. so long as we don't lose sight of what's important. don't be afraid to seize that moment to talk to your friends. - cloud, you okay? because checking in on a friend can create a safe space. - the first step on our new journey. you coming? reach out to a friend about their mental health. seize the awkward. it's totally worth it.

♪ >> you are watching daybreak asia.

pmi numbers for singapore, softening, the prior reading had been 55, a little softness. hong kong is looking bright. we saw hong kong gdp better than expected. >> we been following pressures and cicc is going to cut pay. one of china's biggest investment banks has

communicated that staff could be relegated to lower ranks and demotions are rare. the plan is being reviewed as a way to cut costs without making them redundant and companies can terminate employees so demotions can read bankers to resign. the pay level was on par with goldman, but it has cut bonuses and cost pressures amid a slump, cicc ebay tight lid on costs.

people are planning to demote bankers. >> this comes as xi jinping arrived in france. rebecca joins us for more. the choice of places is interesting. more receptive to china in the past? rebecca: they backed a key probe which triggered momentum in other areas, but emmanuel macron has a different voice from the

rest of the union. they're hoping to put more space between the eu and u.s.. raising issues of overcapacity and a personal nature of their relationship, they went to long dong. a post held by xi jinping's father, there is a plan to take a delegation to the. these mountains where he spent a lot of time at his grandmother's house. we can see a charm offensive. heidi: we see personal friendships in these carefully

picked designations, but does this turn the tide for china's relationship? we know tensions have been rising. rebecca: we've seen this at a moment where france set a goal with domestic partners to increase the sale of ev's and a flurry of allegations over chinese spies. i think france and hungary present an opportunity to pressure eu to move from probes. hungary is a strategic partner

with the ability to delay probes. they are the last remaining european nation that is a member of the bri, so china can showcase benefits of their economic relationship if it maintains free, frictionless trade ties. annabelle: xi jinping's visit coincides with vladimir putin's inauguration, how much will that play into the conversations? rebecca: it has been a big obstacle when it comes to china's relations with the european union. a feeling that china has not used its influence to change the course of the war, that will be

scrutinized. going to serbia for the 25th anniversary was a foundational moment that helps a lot of mistrust in china and a signal that it remains firm in support of vladimir putin. same with hungry, distrustful of the u.s. border. there is a charm offensive, appealing to a leading nation, we also see reaffirmation of close ties and sympathetic parts of europe. it is a balancing act that shows china's perspective and pov when it comes to these issues.

annabelle: that was asia economy and government reporter rebecca choong wilkins. chinese markets are poised for a positive open, beijing at a impetus to momentum. let's get more with our asian equities reporter. if the session in hong kong is a guide, we can expect a pop at the open. reporter: china will play catch up to those. the golden dragon has risen 8.4% , thanks saying just like you said rose 4% more during thursday and friday. so we will see how equities do, but a lot of investors have said they're giving it a second look

because of their earnings recovery and how valuation is cheap and policies are coming from the government. he things are reaction to the meeting on tuesday because results were out after the market closed, this is the first session we will get a grasp of responses to the meeting. haidi: what are the sectors we should watch? reporter: some sectors are consumption and travel stocks. we've seen casino stocks doing really well in hong kong. we've seen mgm china rising 12% after post holiday trading so we will watch casino stocks in the hang seng index.

also property stocks as they have positives on both sides were hong kong has seen the most transactions in april and properties are waiting for the reaction. watching chinese health care having positives from the policy. >> thank you. that was asia equity reporter and a reminder there are a number of markets that are still closed. japan, south korea and thailand. plenty more on daybreak asia, this is bloomberg. ♪

♪ >> bnp paribas conference is underway. stephen engle standing by. stephen: thank you. we're joined by michael, copresident at a leading electric vehicle maker. he is copresident and overseas international expansion.

he struck a big deal with stellantis who owns chrysler and jeep. what was the biggest take away? both of us were at the show, what was the most important development? michael: thank you for having me here. one striking feature is that the ev has been irreversible in china. almost half the cars sold in japan are some form of electric vehicle. most models are electric vehicles. stephen: before we talk about

the export situation, the chinese have seen scale work to their advantage. massive price war is driving down profit margins. there must be more consolidation before you have the true national leaders that will take brands overseas. michael: consolidation has been going on since last year. what happens is every company works hard to stay in the game, with competitive products. what will happen is companies will not do as well as others. companies that do well will remain competitive. >> for survivors how important

will exports be? the u.s. is a no go zone. 20% plus tariffs. a lot of legacy makers were in beijing trying to figure out how to come to the china market, but they have more pressure at home for jobs. how are you going to navigate that? michael: for the stronger china ev companies, they will adapt to the changing environment. they will increase the pressure of terrorists and expand overseas. continue to bring down policy, innovate, make products competitive. we have seen this coming in

several industries. this is what we expect. advantages of us is china is a big market and can host a lot of innovation, consumers demand it, rather than other markets, consumers do not. that gives us support. stephen: where you focusing? i know europe is in your plans, there will be tariffs. michael: it will come, it will come and increase. because differentials in china and other regions.

stephen: you sell 30% cheaper. michael: right, that is the advantage because the supply chain in china is efficient at lowering the cost of operations. suppliers are here, and a lot of engineers work very hard. you've heard this working schedule and consolidation pressure, price war. we keep doing a better job because of the products. >> what can you tell us about your markets? third quarter is a target? >> yes, by end of third quarter we should be prepared to sell delivery cars from the fourth quarter hopefully.

and we worked with stellantis, which gives us the perfect feet to all of our companies. they will continue their network of resources globally. stephen: u.s. is not on the short-term horizon because we have so many things to deal with. when you talk about european market, asia, south america, markets can start to develop. >> we have heard you might work for stellantis. >> we look to sell the cars. including italy, france, germany and other countries.

asia as well. >> were going to send it back to you, michael wu, thank you so much for talking about a very sensitive subject. the whole issue of overcapacity, anti-dumping investigations, and a lot of politics. back to you. annabelle: very timely given xi jinping's on a trip to europe. we will have more from the conference, the second annual mobility event today. stay tuned for discussions and including the head and cofounder of the autonomous tech firm, john. a quick check on markets, japan moving higher, reflecting optimism.

apple impressed investors and traders are rethinking their bets. outpacing gains, handing a special dividend. the stock is moving in the opposite direction. it is a company lowering its profit margins. it had seen up to 75 million, so a big drop in investors are concerned. you can see past interviews on our interactive tv function or dive into functions we talk about or the conversation by

sending us instant messages. this is for bloomberg subscribers only, check it out at tv .

♪ >> let's get you across corporate headlines. brookshire hathaway rose to $189

billion. they trimmed their stake in apple. warren buffett said apple is better than american express and coca-cola. qantas will pay a fine of $100 million for selling tickets on flights they agreed to cancel. the agreement includes a program expected to cost $20 million. affected customers will range from 225-400 $50. the company known as foxconn assembles smartphones and posted in 19% jump in sales. they diversified to focus on

equipment tied to ai. annabelle: earnings season continues in asia and major carmakers. toyota may deliver its fastest growth since 2013 led by recovery in north america and europe. banks will report results. rachel, the focus on automakers, you're watching the names in japan and india. >> we are seeing quarterly revenue grow by one third. consisting performance and investors looking to split into

two separate entities to boost the value of the segment and another company will see double-digit revenue growth thanks to high-volume and selling prices. >> do we see sales passed through to toyota or is there an outperformer? >> many consumers are looking out for cheaper automobiles after pandemic driven cost and higher interest rates, pandemic shortages trip up -- driven up costs as well.

we are seeing toyota and honda with sales gains. nissan could see higher retail sales in north america so toyota could see the highest profit since 2020 and they led recovery in north america and europe. haidi: quick check on how markets are faring, the focus is how equities reopen at the bottom of the next hour. looking at equity risk premium for china versus the rest of asia. ♪

>> good morning from hong kong. i'm david eating the lace. yvonne: the yen set for gains.