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Speaker 1: This is Bloomberg day Break Asia for this Wednesday, April

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Speaker 1: fifth in Hong Kong, Tuesday April fourth in New York.

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Speaker 1: Coming up today, US job openings fall and strengthen the

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Speaker 1: case for the Fed to dial back its tightening campaign.

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Speaker 1: JP Morgan Chase CEO Jamie Diamond warns the US banking

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Speaker 1: crisis is not yet over and New Zealand Central Bank

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Speaker 1: may further slow its pace of rate hikes. Later today,

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Speaker 1: Donald Trump leads not guilty to thirty four felony criminal

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Speaker 1: counts of fraud. DA says it resembles hundreds of white

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Speaker 1: collar crimes. Trump attorneys say political prosecution, President Chief Courts,

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Speaker 1: President mccron, and Beijing. I'm at Baxter with Global News.

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Speaker 1: That's all straight ahead on Bloomberg day Breakasia, the business

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Speaker 1: news you need to start your day in just one

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Speaker 1: fifteen minute podcast available on Apples, Spotify, the Bloomberg Business

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Speaker 1: app and everywhere you get your podcasts. Good morning, I'm

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Speaker 1: Dead Prisoner and I'm Donnie Quinn. We'll update today's leading

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Speaker 1: business stories in a moment. First Global News and our

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Speaker 1: top story. Donald Trump has pleaded not guilty to falsifying

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Speaker 1: business records in an alleged criminal scheme to manipulate the

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Speaker 1: twenty sixteen election. At Baxter has a global news from

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Speaker 1: the Bloomberg Newsroman San Francisco, Eddie, It's exactly right. Donald

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Speaker 1: Trump is now a criminal defendant. He's been read his

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Speaker 1: rights and anything he says can now be held against him.

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Speaker 1: District Attorney Alvin Bragg says the key element is a

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Speaker 1: cover up alleged hush money to Stormy Daniels. Under New

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Speaker 1: York state law is a felony to falsify business records

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Speaker 1: with intent to the fraud and intent to conceal another crime,

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Speaker 1: and Bragg says it's just like hundreds of other white

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Speaker 1: collar crimes prosecuted in the same way as this one

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Speaker 1: by his office. Ed its core, This case today is

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Speaker 1: one with allegations, like so many of our white collar cases,

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Speaker 1: allegations at when live again and again to protect their

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Speaker 1: interests and evade the laws to which we are all

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Speaker 1: held accountable. Trump attorney Joe Tacopina denies that, Well, everyone

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Speaker 1: is not above the law. No one's below it either,

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Speaker 1: And if this man's name was not Nobel J. Trump,

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Speaker 1: there is no scenario we'd all be here today. Please

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Speaker 1: understand that based on these charges. Yeah, but Trump's demeanor

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Speaker 1: all day was somber, is noted by Bloombergs Joe Matthew,

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Speaker 1: and Rick Davis. Joe, reading from an early morning Trump's

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Speaker 1: social media post heading to Lower Manhattan the courthouse seems

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Speaker 1: so surreal. Wow, they're going to arrest me. Can't believe

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Speaker 1: this is happening in America. Maga. Yeah, I think it's

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Speaker 1: really kind of a somber text for him, right, No

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Speaker 1: all caps going angry on, you know, the prosecutor's wife

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Speaker 1: or anything. I mean, like he's been over the top

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Speaker 1: on his comments leading up to this and to put

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Speaker 1: that in today and it actually sounds like he's a

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Speaker 1: little worried about it. Now. This is just the first

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Speaker 1: of several cases being worked against Trump. Federal appeals court

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Speaker 1: has denied a Trump pushed to block a group of

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Speaker 1: former White House advisors from testifying before the Federal Injury investigation,

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Speaker 1: efforting to undermine the twenty twenty elections. Now, Trump is

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Speaker 1: back at Marlago for a rally tonight. It is scheduled

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Speaker 1: for eight fifteen Wall Street time. We plan on carrying

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Speaker 1: it live. China's President Chi Jumping is pulling out all

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Speaker 1: the stops. As French President and Mania mccron visits Beijing

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Speaker 1: beginning to day, mccron will have extensive face time with

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Speaker 1: she as China efforts building a wedge between Europe and

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Speaker 1: the US. Thursday, European Commission President Ursula Vandaland will join them.

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Speaker 1: The three plan on taking an excursion to Guangzhou as well.

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Speaker 1: French official site a warming feeling with China heading into

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Speaker 1: the visit, and the flag of Finland has been raised

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Speaker 1: at NATO headquarters a full fledged member. Now more details

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Speaker 1: on that at the bottom of the hour. Global News

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Speaker 1: powered by more than twenty seven hundred journalist and analysts

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Speaker 1: and over one hundred twenty countries. In San Francisco, I'm

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Speaker 1: at Baxter and this is Bloomberg. It's day Breakasia and

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Speaker 1: we move next to the Business News and a dire

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Speaker 1: warning today about the impact of the banking crisis from

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Speaker 1: Jamie Diamond, the CEO of JP Morgan Chase. We have

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Speaker 1: more from Bloomberg's Denise Pellegrini. Diamond says the banking industry

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Speaker 1: problems aren't over yet, and he says the crisis will

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Speaker 1: be felt for years. It is annual letter to shareholders.

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Speaker 1: Diamond also says regulators shouldn't be tempted to overreact with

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Speaker 1: more rules. He says capital rules pushed banks to binge

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Speaker 1: on low interest assets in the first place, and then

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Speaker 1: those assets lost value as interest rates rose. Diamond also

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Speaker 1: calls for governments to consider using eminent domain to accelerate

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Speaker 1: investments in renewable energy and in fossil fuels, but he

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Speaker 1: also says, to anyone who thinks he's getting solved, he's

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Speaker 1: still a red blooded, patriotic, free enterprise and free market capitalist.

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Speaker 1: Denise Pellegrini Bloomberg Day Breakasia, with the number of available

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Speaker 1: job positions in the US decreased from ten point six

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Speaker 1: to nine point nine three million. That's according to data

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Speaker 1: from the Labor Department's Job Openings and Labor Turnover Survey.

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Speaker 1: Vacancies were below all estimates in a Bloomberg survey of economists.

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Speaker 1: We got reaction to the numbers from Bloomberg's Michael McKee.

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Speaker 1: Under the hood, they're not as bad as they would appear,

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Speaker 1: And I'm not sure how you define bad in this case,

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Speaker 1: because a decline in job openings is good news for

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Speaker 1: the FED because it suggests the labor market gets a

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Speaker 1: little bit looser. Enduring strength in the job market remains

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Speaker 1: a key hurdle for the Fed as it seeks to

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Speaker 1: bring inflation down to its two percent goal. Traders will

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Speaker 1: next shift their attention to Friday's monthly jobs report. It's

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Speaker 1: currently forecast to show employers added nearly a quarter of

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Speaker 1: a million workers in March. Bloomberg Radio and Television. By

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Speaker 1: the way, we'll have live coverage of Friday's jobs report

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Speaker 1: and special edition of Bloomberg Surveillance starting at seven am

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Speaker 1: Eastern and later today, we'll have a decision on interest

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Speaker 1: rates from New Zealand Central Bank two pm Local time.

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Speaker 1: Bloomberg's Paul Allen has a preview. The abby Z is

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Speaker 1: expected to further slow the pace of interest rate increases.

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Speaker 1: This week, the Reserve Bank will raise the official cash

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Speaker 1: rate to five percent from four point seven five that's

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Speaker 1: according to nineteen of twenty one economists in a Bloomberg survey.

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Speaker 1: One expects a fifty basis point move and another sees

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Speaker 1: no change. Today's decision comes as a weakening economy suggests

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Speaker 1: the end of the arbian Zed's tightening cycle is getting near.

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Speaker 1: The Central Bank has been hiking at a record pace,

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Speaker 1: but slowed to a fifty point increase in February after

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Speaker 1: a seventy five point jump at the end of last year.

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Speaker 1: A further deceleration to a twenty five point step may

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Speaker 1: indicate the bank no longer expects to reach a peak

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Speaker 1: of five and a half percent. Today's ARBI and ZED

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Speaker 1: decision is also an interim review rather than a quarterly

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Speaker 1: monetary policy statement. Therefore, the Central Bank won't issue new

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Speaker 1: forecasts and there is no press conference with Governor Adrian

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Speaker 1: or I'm Paul Allen Bloomberg day Breakasia Axel Lehman was

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Speaker 1: narrowly reelected as the last chairman of an independent credit suite.

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Speaker 1: What was the end of an emotional final annual meeting

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Speaker 1: for the Swiss Lander. It came a month after UBS's

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Speaker 1: historic deal to buy Credit Suies. It was also the

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Speaker 1: first occasion in years where investors were able to confront

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Speaker 1: Credit suisa's management face to face. Previous meetings were held

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Speaker 1: virtually due to the pandemic. Speaking to more than seventeen

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Speaker 1: hundred attendees, Credit Swiss chairman accele Leman apologized for failing

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Speaker 1: to save the bank one legacy issue after another had

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Speaker 1: already seen trust eroded and with it patients dwindled, and

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Speaker 1: that we failed. It's a bitter reality to see that

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Speaker 1: our strategy didn't have time to bear fruit. Separately, shareholders

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Speaker 1: also rejected fixed compensation packages for Credit Swiez's executive board

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Speaker 1: chairman AXL Leman said he has to look at what

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Speaker 1: the next option is for the executive team's pay. It's

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Speaker 1: also still unclear which if Credit suisa's top executives will

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Speaker 1: survive the takeover by UBS, whose own annual general meeting

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Speaker 1: takes place Wednesday. Well, it is a holiday short and

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Speaker 1: the week in the US equity markets will be closed

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Speaker 1: for the Good Friday holiday. All the bold the bond

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Speaker 1: market will trade for a half day since the March

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Speaker 1: employmentry data is due at that time. Now, currently the

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Speaker 1: swaps market is pricing in a less than fifty percent

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Speaker 1: probability that the Fed will hike by twenty five basis

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Speaker 1: points in May. Let's take a closer look now at

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Speaker 1: all the market action with our guest Joy Yang ahead

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Speaker 1: of product management in marketing at market Vector Indexes, who

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Speaker 1: happens to be here in New York. Thank you so

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Speaker 1: much for joining us today when you look at the

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Speaker 1: volatility that we've been seeing in the interest rate space,

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Speaker 1: particularly the US treasury market right now, what does that

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Speaker 1: tell you about where the economy may be headed. I

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Speaker 1: think it's saying, you know, as everywhere, whether it's bond, equities, gold,

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Speaker 1: you know, everything is volatile. So this is an indication

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Speaker 1: that the market is uncertain what direction is going on,

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Speaker 1: and they're hedging their bets. When we've seen today we've

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Speaker 1: been watching gold prices. Gold hit two thousand, which is

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Speaker 1: a significant band for gold to hit. So you know,

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Speaker 1: this is saying, regardless of what is the outcome of

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Speaker 1: the market, people are hedging their bets. And you know,

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Speaker 1: we've seen gold trading at a band before, but now

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Speaker 1: it's breaking its band and it's going up. So we're

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Speaker 1: going to watch this space. People are looking for safe havens,

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Speaker 1: they're taking risks off the table, and you know, hopefully

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Speaker 1: the Fed will also take a pause, as we've seen

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Speaker 1: central banks around the world do. Just given there's so

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Speaker 1: much noise, we have to really decipher what's real data,

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Speaker 1: what's noise, and you know, what's meaningful. If the FED

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Speaker 1: were to take a pause, as you advise, what would

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Speaker 1: that signal to the market, and also you know, to

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Speaker 1: the rest of us, with that signal that the FED

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Speaker 1: is confident and inflation coming down with a bit of

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Speaker 1: a lag, or would it just the FED might be

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Speaker 1: scared about growth and that could also find no way

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Speaker 1: advising the FED because this is a very difficult position.

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Speaker 1: But certainly, you know, i've as we see Australia do

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Speaker 1: it may be prudent to take a pause, but still

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Speaker 1: soon know that you know, they're open to either raising

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Speaker 1: rates or decreasing. But I think the economic data that

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Speaker 1: we're seeing is lacked, so you know, we don't know

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Speaker 1: what it means when we see it in real time,

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Speaker 1: but we do have other real time data. We've seen

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Speaker 1: a banking crisis that's real time data, and that's pretty

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Speaker 1: significant to see that there is fagility in the market

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Speaker 1: and that there is some kind of stress that people

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Speaker 1: are dealing with. Even though the banking crisis now seemingly

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Speaker 1: in the rear view mirror, we're now faced with potentially

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Speaker 1: credit crisis, so there's a lot of uncertainty out there

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Speaker 1: that people are trying to manage. Well. That seems to

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Speaker 1: coincide with what we heard today from Jamie Diamond that

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Speaker 1: the lingering effect effects of the banking crisis may be

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Speaker 1: with us for some time. If you had to point

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Speaker 1: to one area that is particularly rate sensitive, there's been

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Speaker 1: so much talk about the potential vulnerability in let's say,

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Speaker 1: commercial real estate. Are there pockets interest rate sensitive pockets

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Speaker 1: of the economy that are on your radar right now? Yeah?

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Speaker 1: And I think we should be careful of classifying all

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Speaker 1: commercial property together. So I think, you know, different regions

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Speaker 1: will have different sensitivity to interest rate as well as

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Speaker 1: you know where the concentration of the industry, you know,

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Speaker 1: behind those commercial properties are. So you know, it's it's

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Speaker 1: it's difficult to cluster everything together. And I think this

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Speaker 1: is an environment where investors have to be discerning. They

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Speaker 1: can't look at all banks as one cluster either. And

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Speaker 1: we've seen that there are some well run banks that

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Speaker 1: don't have liquidity issues, or don't have credit issues, or

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Speaker 1: are not concentrated. So you know, it's it's prudent for

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Speaker 1: investors also to really you know, separate kind of cheat

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Speaker 1: versus just that joy. You mentioned safe havens a moment ago,

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Speaker 1: and you talked about gold over two thousand dollars and owns,

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Speaker 1: But where are the safe havens. Otherwise, if you think

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Speaker 1: about treasuries moving in a range of you know, thirteen

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Speaker 1: basis points today twenty basis points on Monday, I mean

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Speaker 1: that's kind of ye. So I mean you can think of,

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Speaker 1: you know, you can get four five percent with a

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Speaker 1: low risk asset, but how long would that last? So

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Speaker 1: I think people are still also sensitive to US treasuries,

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Speaker 1: you know, high debt. You know, is that actually that safe?

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Speaker 1: And so we're also watching, you know, not only go

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Speaker 1: a bit bitcoin, because you know, we've seen this as

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Speaker 1: an alternative option for investors to think about safe haven

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Speaker 1: that's immune to government interaction. That is, you know, theres

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Speaker 1: so yes, not in maybe not in the US, but

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Speaker 1: certainly around the world. And I think this is a

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Speaker 1: global asset, So let's talk about that. How are you

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Speaker 1: viewing opportunities offshore right now, particularly in Asia, are you

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Speaker 1: finding things that look attractive? Well, some conductors is up

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Speaker 1: ninety percent year to date, right um n video is

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Speaker 1: up twenty percent year to date. Semi conductors are up

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Speaker 1: thirty percent here to date. So this is attractive because

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Speaker 1: people are still innovating and artificial intelligence is definitely top

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Speaker 1: of the headlines. But Artificial intelligence isn't just about the

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Speaker 1: Googles or open AI of this world or the Amazons.

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Speaker 1: They're also about the underlying uh you know, components that

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Speaker 1: really serve to deliver artificial intelligence, which is going to

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Speaker 1: be semi conductors, and that's you know, we have you know,

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Speaker 1: semi conductors are globally all over the world, so we're

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Speaker 1: seeing you know, kind of innovation and disruption in that area.

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Speaker 1: Has geo political risks gone down your list as something

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Speaker 1: to be concerned about this year, No, cube particularly We're

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Speaker 1: semi conductors are conc Yes, absolutely, we've seen you know

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Speaker 1: this on shoring. So a lot of this maybe deglobalization

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Speaker 1: of protection is for uh, you know, national industries, so

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Speaker 1: that is a high risk, but you know that's you know,

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Speaker 1: people are sensitive to that. And again you know, um,

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Speaker 1: the supply chain risk is still at play, and you

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Speaker 1: know that's even reaching further with China outsourcing to Vietnam,

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Speaker 1: Vietnam atsourcing somewhere else, so you know it's getting more

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Speaker 1: and more complicated. Joy, how are you viewing the China

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Speaker 1: reopening right now? Are we kind of in a bit

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Speaker 1: of a period of stasis. There was so much enthusiasm

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Speaker 1: right after the pivot away from COVID zero, and there

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Speaker 1: was pandump demand that expressed itself not only in markets,

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Speaker 1: but in a lot of the data that we saw.

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Speaker 1: It seems like things have kind of softened a bit.

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Speaker 1: Is that concerning to you? Well, china reopening is the

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Speaker 1: positive news for certainly for the emerging market Asian emerging

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Speaker 1: market economy, but right now we're also dealing with the

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Speaker 1: political risk of bilateral agreements that China is facilitating behind

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Speaker 1: the US. So I think it is concerning for the US,

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Speaker 1: but you know, relatively to the US, it's potentially positive

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Speaker 1: for other economies. Would you put new money to work

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Speaker 1: in Asia right now, Let's say China and maybe countries

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Speaker 1: like South Korea or taime one. Yeah, it's certainly South Korea, Taiwan,

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Speaker 1: to some extent Vietnam. They have the demographics, they have

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Speaker 1: the technology, they have kind of the infrastructure to deal

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Speaker 1: with some of the innovations that's going to happen with

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Speaker 1: China's reopening. This is Bloomberg Daybreak Asia, your morning brief

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