>> welcome to daybreak australia. i am haidi stroud-watts in sydney we are counting down to asia's major market opens. annabelle: i'm annabelle droulers in hong kong. stock investors playing it safe with age and futures mixed and wall street flats. 10-year treasury yield's falling for the first time in six sessions. an auction draws tepid demand. >> arm shares tumbling out a lukewarm revenue forecast raising concerns of the tech industry ai spending three -- spree slowing. >> xi jinping lands in hungary counting ties to eastern europe as a boon for the chinese economy. shery: breaking news for the account balance for south korea. the trade surplus number for

march widening to just under $8.1 billion u.s.. we are seeing the current account surplus also there widening to $6.931 billion as well. we have seen quite a big move over the past few months when it comes to the you want. -- yuan. we are seeing a bit of an increase when it comes to net exports of goods. we have seen a decline in manufacturing services, transport, and travel and a bit of upside for construction and building as well as investment income, particularly when it comes to the contribution of equity income. let's get to how we are setting up when it comes to the thursday session in asia. this is a picture for futures trading in australia. we are seeing futures down by about .25%. we have a firmer dollar and a bit of weakness in the end. we are seeing broadly the equity session primed for a bit of a

mixed open. u.s. stocks ended more or less flat and at the wednesday session. we do have the effect of higher yields supporting the currency there. expect weakness across asian fx today. kiwi stocks off by about .3% in the early session. chicago nikkei futures look a little softer. shery: also looking at how u.s. stocks are coming online. when you say softer that is the dynamic of wall street as well. given we did not really see too much movement coming through. future steady at likes of tesla, alphabet, intel all falling intraday on the session. arm is really the one we are tracking. we had a bit of a tepid forecast from the company. it perhaps casts a little doubt over the ai lead or ai enthusiasm we are continuing to see over the course of the year. a big drop in after hours. 10-year treasury yield's rising

a few basis points. also continuing to assess the outlook from fed speakers and the outlook for rate hikes or rate cuts or whatever happens with rights over the course of this year. certainly, the boston fed president, susan collins, for instance is saying that reaching the 2% inflation goal could take quite a bit longer. listen. >> there is a significant amount of uncertainty around that outlook. the recent data leads me to believe it will just take longer than was previously thought. >> let's get to our first guest. senior market analyst at capital.com. kyle, where does the fed go from here? we know they don't want to cut rates. at the same time we have not seen much progress on inflation over this year. what are the options? what is the market impact? kyle: as you said it is abundantly clear the fed does

not want to have to hike interest rates further. that could be a mistake, obviously. potentially there is a sort of bias entering their policymaking that does not consider the balance of risk to inflation. i see this playing in three potential ways. basically, the strategy at the moment is for the fed to keep policy at what it thinks or assumes is restricted levels and hope that the disinflation process plays out. increasingly, we are running into a situation going back to the old question that should never really be strayed from much. how much damage does the economy have to sustain, in particular, the jobs market, to be able to get inflation back to target? that is a much bigger concern, and likely to manifest in much higher volatility in the bond markets and equities over the next few months. the last, very unlikely, outcome that would be very favorable for asset prices is we start to see a said that at least tacitly acknowledges inflation is not

going to get back to the 2% target anytime soon. and, it is willing to essentially stomach a 3% rate. we have heard from fed speakers at that kind of walking away, effectively, at least comedy prioritizing, reprioritizing the dual mandate, further towards the labor market and away from the 2% inflation target is terribly unlikely and would be bad for said credibility. it is the final option as to how the fed could play their cards with the kind of scenario we have at hand. at the moment, the fed is clearly banking on the hope strategy. the hope strategy is probably good for markets, as we have seen over the last couple weeks. if we continue to see strengths coming through inflation data, yes, last week's data was not very strong but the economy is still robust. the trade-offs inherent in monetary policy, what damage has to be done to the economy to get inflation back to target? that will reemerge and i expect it will be a driver of market volatility for at least the next few months and probably the rest of the year.

haidi: looking like option two. i can see you have a short right now on u.s. stocks. kyle: yes. days, weeks, if not the next month. our clients are very short-term in their thinking. the rationale has a bigger picture view. to say that really what is sustaining optimism in equities over the last few weeks, yes, they walked back of the potential for further rate hikes from the fed being priced into the market, but the earnings outlook has actually improved. it is a narrow group of stocks driving that. technology stocks have driven outperformance in q1 in earnings leading to a list in expectations for not just second quarter, but the full year. at the moment, if you really look at the spreads between bonds and equities, yield spreads between bond and equities, they aren't particularly favorable. assuming we see bond yields remaining roughly around where they are may be the two-year continues to push towards 5%.

the key element is to see a lift under earnings expectations, giving that outlook from here, the fact that we have come to the end of earnings season, increasingly unlikely. we are running into a 52 hundred level on the s&p 500. the yield advantage and equities is narrow. short-term the out trend in equities is basically in tact. it looks like we will see an unwind of the post fed, post earnings season relief rally and i think that the risk reward in the virtual term looks reasonably attractive to short in particular the nasdaq but the s&p 500 as well. haidi: we are hearing from japan's currency chief and we tended to hear from them every morning. the language is different this morning. they said they are ready for currency intervention at any time. are we -- my question about the yen is two fold. is there a concern about more currency volatility more broadly and potentially indications of the early parts of a currency war in asia, and, is it

surprising we have not seen a stronger correlation with the performance in japanese equities? how: the first -- kyle: the first part of the question to begin with. clearly, the only way the situation will end is if u.s. disinflation, u.s. disinflation trend continues and we see u.s. dollar weakness reemerge because of rate cuts priced into the market or the boj steps back into the fold and starts to signal tighter monetary policy. ultimately, the yen will be driven by fundamentals. at the moment the fundamentals are not particularly favorable for the japanese yen. there is a question of whether the ministry of finance will intervene again. if it gets close to 160, they probably will. they are really just trying to basically shock the markets as much as possible and give themselves some time to hopefully see the prevailing macroeconomic fundamentals start to move in a more favorable direction for them.

the second part of the question, as you said, is we really have not seen a pickup in the nikkei despite the yen radiating significantly remaining around 155 level. it would seem financial stability risk is starting to come into question. and also, the possibility that maybe even if the bank of japan does not adjust its key interest rate, it will maybe have a more active stance trying to guide 10 year jgb, obviously negative for evaluations in japan and it also raises, at the margins, a higher risk for market volatility. we are seeing uncertainty in currency dynamics as well as where the 10 year jgb could head if the bank of japan has to try to lean against the currency in some way, affecting writer uncertainty in risk assets. for a while i have felt skeptical about the nikkei rally. i was a short on that one.

now it seems to be the case that the uncertainty prevailing because of this the financial dynamics, the currency dynamics are playing out in market sentiment. haidi: does it depend on further progress on policy and the economy? kyle: interesting point about flows. there was an argument the reason why japan was performing so well was capital was coming out of china, both because of some financial stability risks we saw there and also because of

changing geopolitical dynamics and structural challenges may be china is facing. i suspect that is less of a factor now because we are talking about money that is looking to allocate over much longer term time horizons and effectively exit china in favor of japan because of longer-term trends of decoupling as well as the kind of, may become lower trend growth that could emerge in china. the way i see china at the moment in the rally is threefold. the technical sentiment element, the financial stability element, and macroeconomic fundamentals. the first two have become very favorable to china -- for china because a fantastic work. at least for now the situation is fluid and it difficult to contain. at the fantastic work policymakers did to restore market confidence, intra-financial stability risks were for now and then because of interventions from the national team. every time we have seen a selloff in chinese equities they have been quick to jump in and a short prices to support them come confidence and diminishing

financial stability risks, at least for now, in a way where again there is major structural concerns about overleveraged in some sectors and the risk it poses to the financial system and banking system more broadly. the fundamental question is still a little murky for me. we have seen that as financial risks and stability factors improve we have seen an undervalued market price out the discount because of financial stability risks return to a stronger position of valuation or longer-term run averages. we don't have any signal yet the 5% growth target is achievable. i will call that long run because of structural issues. short-term the rally can continue because market confidence has been restored because of the hard work of policymakers. haidi: great to chat with you. coming up later on bloomberg television, bonnie chan joins us for her first tv interview since

taking the top job in march at 9:00 a.m. hong kong time. first, president biden holds back further arms shipments to israel as u.s. unease grows over civilian casualties in gaza. this is bloomberg.

annabelle: chinese president xi jinping arrived in hungary for the last stop of his european visit where he is expected to sign more than a dozen agreements with the beijing friendly government. our chief north asian correspondent stephen engle is here. we saw xi jinping in serbia and there were a number of commercial agreements reached there. it is this the point where we really see the tide three and first between china and eastern europe in particular? stephen: his visit to france basically cemented ties with emmanuel macron. using the french visit as a bit of a counterweight against some of the more urgent economic issues and political issues being pressed by ursula von der leyen, the ecb president. then, serbia was more symbolic. talking about the nato bombing, the u.s. nato bombing of the chinese embassy in belgrade 35 years ago, submitting those ties

with the belgrade government. now this one to hungary will really bring all of the issues together where we are expecting xi jinping and the government of viktor orban to sign more than a dozen agreements. a lot of them will be in the priority industries xi jinping is pushing. the so-called new three including electric vehicles. already bite -- byd in december announced it would build its first european plant in hungary. if that is underway now. we are expecting possibly another even bigger ev plant to be announced at sometime today. assigned with great wall motor. see atl, the big battery maker, is also building a big battery plant in east hungary. clearly victor or bond costs -- victor or bond is welcoming chinese investment with open arms and he has also been at odds with other european union leaders especially over its stance on russia. he has open arms with chinese

investments. there is this belgrade to budapest high-speed rail in the midst of being built as well. it is a very strategic move by xi jinping. a friendly government in eastern europe at a time when the european union, especially, led by ursula von der leyen is really hammering home the overcapacity issues. china is exporting cheaper prices and overcapacity into european markets. >> that conversation with ursula von der leyen was very much about the overcapacity issue and implications if beijing does not address data. is he willing to do anything to allay those concerns? >> the question is, can he do anything at a time when the domestic economy in china is slowing and unable to soak up excess capacity? we have a full-screen quote from ursula von der leyen.

essentially, the quote is "-- that's the wrong quote. ok. there was another about overcapacity. essentially she said she wants to see china act on the overcapacity issues sooner. but that is the big problem now, that china has all of this excess capacity and it's clear that across the industries in green, whether it is solar and also, of course, electric vehicles, they have to find a way to export it. that is why we go back, again, to why hungary plays a big role. if they are voting those plans, obviously, in hungary, eventually those will be classified as domestically built products in the eu. they won't necessarily be tariffed under the proposed tariff schema by the ec right now upwards of 20%. this is a strategic move by xi jinping. later we will get export numbers from china, expected to pick up a little bit in april from the

dismal numbers of march. it all plays into xi jinping's strategy of underpinning growth through exports if they cannot sell it at home and that is a political hot potato obviously in the u.s. and in particular europe and places like germany. haidi: our chief north asian correspondent stephen engle there. the international charm offensive continues for the chinese president and we see signs of work done by chinese diplomats with criticism recently from the u.s. and western allies approach to dealing with israel and the conflict in gaza. we heard from a top chinese diplomat, taking the microphone at the united nations last week, criticizing the supply of weapons to israel. by the united states. very interesting dynamic in terms of the attempts to try to capture -- i's, perhaps, some would say come on the international criticism the u.s. and its allies have faced over

supporting israel. the pressure continues. president biden is saying he will halt additional shipments of weapons to israel if it goes ahead with a ground invasion of rafah. he said at the potential loss of civilian life is "just wrong." bloomberg opinion editor michael eisen joins us now for more. we have talked about the red lines and what it would take for the u.s. to be more firm and the capability president biden has to push harder on israel. michael: this is a real shot across the bowels of prime minister netanyahu. the u.s. has been weird writing -- has been reiterating this for weeks and it has not really resonated with israel. this is something that will. 3.5 thousand bombs. some are really quite big. this ordinance will cause a lot of damage in built-up areas. what they are talking about here makes a lot of sense. the problem is the fallout. when you are trying to negotiate a deal with hamas, which i think

israel is correct in saying it only respects strength, the idea that the u.s. may be cannot exert enough pressure from stopping israel -- to stop israel from going into rafah, that may not be enough. it is a judgment call from biden. there are a lot of people in the u.s. that feel israel as a long-term ally. he has weigh that sentiment against real unhappiness among people on the left, and perhaps, i guess you would say, middle america, that this is just carnage going on here and the u.s. does have a role to play here in really pressuring israel. munitions is a great one. israel cannot manufacture these things at home. it has to import all that stuff. israel's strategy has always been to produce what cannot be produced out -- elsewhere and by the rest on the market. the west does have some leverage here, particularly the u.s..

annabelle: we have heard from a number of top republican lawmakers that say any delay sends the wrong message to its ally, israel, and more importantly, to possibly embolden iran and iranian backed groups. obviously, that's very nuanced. there is no black-and-white here. what weight should we put on the argument you think? michael: they have a good point. i mean, you don't want to be showing a gap between the u.s. and israel. at such a sensitive time. only a couple weeks ago iran rains down -- rained down a whole series of projectiles and missiles on israel. and israel is surrounded by iranian proxies and they are all looking for a chance to have a go at it. the signal this sense, -- sends, this is where president biden's experience is something you will have to draw on because he needs to send a signal to israel.

he has said american support for israel is ironclad. it is a signal. it is not that we will abandon israel to the wolves. it depends on how it is read among israel's enemies. it's problematic. the republicans have a good point. the difficulty for the republicans is there international foreign policy credibility, that has always been one of the strong hallmarks of the party has been dented over the russia ukraine issue not wanting to surprised -- supply support there. they are marginalized on that front. they make a good point in this case. annabelle: our opinion editor michael heath. thank you for your time. we will have more ahead on daybreak, australia. this is bloomberg. i'm a rock star. great job putting finance and hr on one platform with workday. thank you! guys, can you keep it down. i'm working. you people are (guitar noises).

hand over the air guitar. i've got another one.

haidi: some text stories we are tracking this morning. shares of arm holdings problem -- tumbled in light trading after a lukewarm sales forecast for the fiscal year.

the chip designer sees shares of $3.8 billion-4.1 billion dollars for the timeframe. this concerns the tech industry ai spending spree may be slowing. official chinese data suggests apple's iphone sales there jumped about 12% in march, an early sign of success after apple and its retailers cut prices. the technology giant last week surprised investors by reporting quarterly revenue from china that beat expectations. read more about apple on today's big take. it focuses on who may potentially succeed tim cook as ceo. bloomberg's mark gurman looks at a few names emerging as potential successors. read that on the terminal now as well as on bloomberg.com at businessweek. we will have more ahead on daybreak australia.

annabelle: breaking data. japan wages data for march. actually the numbers are undershooting economist surveys. we reading your has come in at .6% growth. that was versus the survey for 1.4% growth. quite under what our bloomberg economics team had been projecting. that does not bode very well into what we see on real cash earnings basis given there is quite a big contraction down 2.5%. the survey had been for -1.4%. and worsening for the month prior reading. not a great outlook coming through for wages growth. certainly not numbers the boj will be wanting to see at this point in time given there had been all that optimism around wages growth in the country following the successful wage

negotiations that concluded earlier this year. labor cash earnings very much undershooting economist surveys. let's keep with japan because we have toyota numbers as well. the company has issued a tepid outlook after recent scandals forced it to cut production. that is overshadowing a surge in hybrid sales that boosted profit last year to a record. for more let's bring in nicholas takashi. were these the results that you expected? nicholas: in some ways yes, in otherwise not so much for it toyota reported a record -- on the other hand, this fiscal year was 4.3 which fell short of what analysts expected. toyota is known for under

promising and over delivering. the yeah -- the last fiscal year was 4.9. and it exceeded that by ¥500 billion yesterday. like you said, hybrids are seeing a rebound in demand right now is ev's slump. which is a double-edged sword for big companies. toyota is fluctuating increasingly. how toyota rides that wave over the next year even if analysts remain positive is yet to be seen. haidi: this was his first fiscal year as ceo of toyota. what kind of year was at in terms of the performance and the challenges? nicholas: just like toyota, his first year in the top job he made more than most executives. on paper it was a better year for toyota. records broken across production

and sales. it was the first time a carmaker more -- made more than 11 million cars in a single year. and shares hit decades long highs. at the same time toyota is recovering from a tear of scandals that emerged in december and january. which involved a number of irregularities and manipulated data. some dating back to the late 1980's. toyota has promised to dial back production to reassess what it is doing right and wrong, what needs to change and what toyota needs to do to revise its business empire. but it is still forward-looking in terms of operating income. it is still looking to people -- keep the top spot. they said they will have to

endure for years in china. these scandals kind of throw a monkey wrench into these promises but toyota is partnering up with tencent for ai software and by doing so open to shorten that span as much as possible. annabelle: that is where i am curious about ev's in more detail. toyota is a company, and japanese automakers being perceived as being slow on ev's. do you think the recent steps in that space are going to be enough for toyota? nicholas: i guess that is the main question on the mind of not just toyota, but a bellwether for the rest of the japanese economy and major other automakers as well. toyota being the largest carmaker in the world is may be expected in some ways more than others to be quicker on this transition. but as you know, it is not known

for that. easy goals have been dialed back in the last couple months. not least of all because of the scandals but also because of higher costs and hesitation on the part of customers who are worried about things like the cost of the car, battery range and whatnot. just in the last year speaking of toyota, toyota pulled forward a lot of new insight on the technologies developing behind closed doors. it is the marquee technology tesla uses to punch out ev's like toy cars. toyota has been laid out as much as it seems to be able to do a roadmap for mass-producing ev's by the millions within the next three to six years, if not by the end of the decade. so they have over promised which

is uncharacteristic in a lot of ways for a company like toyota. but they have made an effort to show us the roadmap forward. annabelle: that was our transport reporter nicholas takahashi. sticking with ev's, a slowdown in demand for such vehicles is pushing many electric vehicle startups to the barinka. two of the largest and most prominent, rivian and lucid, reported wider than expected losses followed by double-digit drops in their share prices. bloomberg intelligence says bankruptcies in the sector may start to pick up as a price war squeezes unprofitable companies. haidi: let's take a look at how we are setting up when it comes to trading about to get underway in about 25 minutes in sydney across tokyo and seoul as well could looking like a mixed picture given we had a flat

session ending for wall street overnight. s&p futures when it comes to sydney off by about a quarter of 1%. kiwi stocks off of session lows. singapore traded nikkei futures are in positive territory at the moment. s&p futures still looking pretty muted. the south korean president will hold his first news conference in about two years today as he tries to set a new course for his conservative government. he has pledged to overhaul his administration after a stinging defeat last month. let's bring in our east asia government editor jon herskovitz. what are we expecting today? jon: we're expecting him to lay out what he wants to do for the remaining three years of his term and he is trying to change course for his presidency. he suffered a major defeat. his ruling party lost seats, the opposition gained seats, has a

very solid majority. so he is trying to show that he is a different person, that he can communicate better. and he is using this news conference which is to mark the start of his second year in office to show that he wants to communicate better with the people. haidi: when you have got the main opposition party with a large majority in parliament, what is realistic for yoon to accomplish here? jon: yoon is really limited as to what he can do in terms of legislation. the opposition party is not going to go along with many of his initiatives. he wanted to increase transparency to corporate values , get more tax cuts for businesses. the opposition is looking at things like cash handouts for people. and yoon's pro-business agendas

pretty much hamstrung. he is going to try and find consensus for things like medical reform, pension reform. and hopefully see if he can find a way to end a walkout by training doctors that has dragged on for several months. it seems there is some room for compromise with the main opposition party and these may be some things he can accomplish. but his pro-business agenda has really been derailed by the election. haidi: are we likely to see any change to foreign policy? he has drawn south korea closer to the u.s. and japan for security. jon: at this point it looks like things are going to stay the course with foreign policy. the opposition is in favor -- they want warmer ties with china. but yoon is going to have a summit expected this month with the leaders of japan and china.

and in july he is thought to have a summit with president biden and japanese prime minister kishida, where they are going to reaffirm the security commitments they have made. so it looks like he is going to be set pretty much for keeping the course for now for his security arrangements which are getting closer to the u.s. and japan, working on ways to prevent the threats posed by the likes of north korea. haidi: our east asia government editor jon herskovitz. more ahead on daybreak australian. this is bloomberg. ♪

haidi: a sydney apartment described as the most luxurious penthouse of the summit -- the summer in -- the price tag has been cut by 10% to still an eye watering $59 million u.s. we have more on this. you have access to this incredible property. why has it been so hard to find a buyer? >> the property was completed in late 2021, which was the post-pandemic period. we saw chinese buyers had kind of moved out of australian luxury property market around 2018, 2019, because of pressure from china on capital slows.

china used to be the number one source country for australia as far as foreign investment was concerned. this was everything but residential real estate was a huge part of the investment. now they are number four or number five. so we can see that that amount has dropped drastically. it is probably the timing. it is probably the fact that we don't have as many rich chinese people who are willing to make that big bet. and also we only have got this deal for the past for five months. they have kind of started doing more of a selling only of late. haidi: stay with us because you mentioned monica, we are going to bring her in. this will give us more insight in terms of this market and the dynamics at play. monica is the founder and director of the black eye men's group and she joins us now from

los angeles. i guess the question is to you, why has this extraordinary property been on the market for so long? monika: i think it has been any market -- it is not really on the market. we just opened up for international buyers to come and experience this incredible penthouse. in the past few years, it is not really property marketed. it is only purely through the database. you are actually the first media, to be honest, to expose this property to the world. mainly due to the pandemic, people are not able to come and enjoy the lifestyle. this amazing penthouse is not just about square meters, it is about lifestyle.

if you are not able to travel to experience the lifestyle, obviously it is hard to sell. but now we are open. we are open now to all the international buyers. swati: you are in los angeles at the moment. is it related to the sale of this property? are you looking for american buyers for this property? monika: absolutely. as your guest knows, all the international superstars stay there. taylor swift state there. mark wahlberg. there is nothing compared to this amazing penthouse. hopefully we can find some american celebrities to come and enjoy this lifestyle and hopefully buy it. swati: normally when we look at the australian property market is mostly dominated by land and house purchases.

this is a penthouse on the 81st floor. what makes it unique? why would anyone pay $59 million u.s. when they are not getting land with it? monika: i think if you want the land obviously you can't buy -- you can buy some amazing places in austria. but this is not about buying land, this is about buying a lifestyle. it's an amazing six star resort. look at the picture. you have a private pool, tennis courts. bars and restaurants. i won't name any movie stars but we have had them stay in the house. you don't have the service. you don't have 11 bars and restaurants providing five-star service and 24 hour concierge. the reason people would buy the penthouse is definitely because of the lifestyle.

haidi: we have spoken to you many times over the past few years and i know you have built your business with these ultrahigh net worth chinese clients. can you tell us what does your client book look like at the moment? is there a big shift away from china? monika: i would not say there is a big shift. we still have a lot of really wealthy chinese clients. they live in china, migrate to australia or other parts of the world. at the moment we have a lot of attractions from southeast asia. our biggest market, our number one buyers are vietnam, cambodia, thailand, and of course singapore is one of the big sources of our clientele. haidi: that is quite interesting. what are those clients looking for when it comes to australia, and do you see it as a challenging environment in terms of foreign property investors?

monika: compared to the rest of the world i think australia is still the most desirable destination for southeast asian and chinese buyers. otherwise australia is probably the safest country in the best of the best lifestyle for international buyers. swati: when are you expecting to make this sale? when do you think this property will be sold? monika: as soon as possible. [laughter] hopefully within a few months. haidi: so 2024, you are confident? monika: super confident. in the first quarter we already met our target. yeah, 100% confident. haidi: you are nothing if not confident. monika tu, founder and director

of black diamondz group, and our economics reporter swati pandey. you can read more of that story on the bloomberg. you can also watch us live with the tv function. you can dive into any of the securities or functions we talk about and join in on the conversation. this is for bloomberg's subscribers only. check it out at tv . this is bloomberg. ♪

haidi: australian is largest bank announced a 3% decline in the first half. paul allen joins us now. we have seen similar results for aussie banks over the past week returning cash to shareholders. this is also a consecutive decline. do we see them trying to give that sweetener? paul: would not rule it out and there is plenty of gas in the tank for that kind of thing. they are in the middle of another buyback as well. they have already completed 250 million dollars worth of a previously announced $1 billion buyback. that is surplus capital they are carrying. that suggests there is scope for another buyback. it is a kind of weird one, commonwealth bank. this is a trading update the

third quarter. the report out of sync with their peers but in sync with the rest of the market. but the commentary has been similar from the other banks. the ceo said with households feeling pressure, but the fundamentals of the economy are very strong. unemployment is low and immigration is just a structural tailwind for the economy right now. annabelle: the home loan growth, how is that holding up for cba? paul: in this environment of immigration, the property market has been very strong and home loan growth has been strong as well put grown on quarter by $4.2 billion per commonwealth did say net interest margin is slightly lower than -- and it did not specify how much lower but it has become a lot more aggressively greedily on loan writing and listed -- lifted from 50% to 80%.

it was not that long ago we had a royal commission of misconduct in the banking industry in which bonuses were pointed out as being part of the problem. commonwealth says the increase in bonuses is to stop financial staff from leaving and setting up shop elsewhere. the other motivation is to try and catch up to macquarie bank who we also heard from in the past week or so is really leading homebuyers at the moment. annabelle: that was paul allen in sydney. taking a look at other stories, shopify shares tumbled up to the canadian e-commerce company pledged to continue investing in marketing despite the pension profits. the firm sees growth margins in the current period narrowing, a forecast which overshadowed his first -- they saw their biggest intraday decline ever, reflecting concerns about future profit margins. airbnb is providing lackluster guidance for a second consecutive quarter, suggesting

growth in travel spending will slow further before the peak summer season. it sees revenue for the current quarter between 2.6 to $2.7 billion. airbnb is blaming the earlier timing of the 2024 easter holiday. nomura has joined jp morgan in limiting dealings with asian hedge fund giants again to eat -- giant segantii. the fun's founder and a former dealer say they will vigorously defend themselves against the charges. haidi: we are watching for the bank of japan summary crossing the bloomberg. this is from the april policy meeting. could be higher than expected. they could also see the need to raise rates appropriately at the

right time. the need to deepen talks on rate hike timing was also applied by one doj member picked another saying consumer spending is a key pointed we know with the weakness in the end there have been a lot of domestic pressures on households and consumer sentiment. we are seeing the yen inching a bit higher against the dollar after the summary of opinions. we saw earlier that real wages continuing to show weakness. the underlying trend is solid but the pay gains are lagging inflation every month for the last two years which is going to really complicate the picture when it comes to how quickly the bank of japan can move. annabelle: certainly something we are tracking closely and also for trading when we get japan coming online in a few moments. arm giving a lukewarm revenue forecast for the year. ♪ ery second counts. 120 seconds to add the finishing touches.

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haidi: we are counting down to asia's major market opens. annabelle: at the start of the day we are quite closely tracking the japanese yen because we are seeing it moving up the back of the april meeting and certainly it seems like they need to discuss further rate hikes to come. haidi: yeah. they are specifically the impact of the yen, saying potentially these moves in the yen, the impact may speed up the process of normalization. but on the other hand weakness across the consumer spending side, domestic households as we see that weakness of the yen is one of the key points when it comes to how quickly they move. and to that point we also had perhaps concerning weakness