Officials in japan, suzuki saying that thet are aiming for wage growth. It was in contraction territory for the 24th straight month. This week it has been the continued slippage in the japanese yen now trading, above the 155 mark. The question of how long if we did indeed see intervention twice last week which does appear to be the case how long that will last in the market. Today we have the nikkei 225 coming on to the upside. Wall street overnight had signals of positivity. We had weaker than expected initial jobless claims. It really backs the case that the fed can cut rates later this year. Nikkei up zero. 4 . Lets look at how the korea how korea is sharing a bank. The korean won looking for more against the dollar how korea is [crowd cheering]. The korean won looking firm or against the dollar. Haidi in sydney we had a giveback of the recent gains, the 5session winning streak. Retail is dragging. This meant lower on the session. But a bit of a bounce back there, 0. 1 higher. We had interesting commentary when it came to expectations for the rba and where they go next. We had heard from an exrba official speaking to bloomberg saying they will only be cutting rates in late 2025. He says theyre forecasting ability has taken a hit postcovid its an interesting read that you can find on your bloomberg. Market reaction the aussie dollar at 66. 19. In the short term, according to our mliv team, expectations for games on the aussie on the back of expected continued recovery in china and some other factors that could drive the currency higher in the next couple of months or so. Also watching brent crude. We had a big week of Geopolitical Uncertainty for oil but, ultimately, krudys headed for a weekly gain as there is renewed optimism for rate cuts out of the fed, gel data supporting oil gains as well. So we are looking at the Third Session rate of gains for crude. And look at how treasuries are trading at the moment. This is not too hard, not two quote submission for fed expectations and the data. We have seen pretty good demand when it comes to the most recent bond auctions. We have seen that market advance more generally across, treasury yields extending from the highest levels of the week on thursday after the 30 year auction. Annabelle yes, it is really the fed narrative, the expectations that we will see cuts this year building in. Lets bring in our guest in hong kong. Richard harris is a ceo at port shelter investment management. We have the fed narrative in play but nothing is coming in september at the earliest until september at the u. S. , we have gotten a pretty good flavor of earnings so far supporting the growth narrative. What do you think will be the next catalyst and how much conviction is there in the rally that we are seeing at this point in time, do you think . Richard there is a lot of conviction. If the market seems to have the attitude of eat, drink and be merry for tomorrow we die. We have seen a lot of talk about Interest Rates falling. They havent consumer growth has come in, earnings have come in, and markets like that. But then from time to time we are having a bit of bad news. A few more jobless . It doesnt matter, the market is still going up. There is confidence in the market. And there are factors behind that. Earnings. Liquidity is still very strong. While people are employed, they will continue to spend. Annabelle what would attest to that book, we have a few weaker data points coming through and the interpretation which changes sometimes, but right now it is good news. How long do you see that narrative persisting, is it when it shows up in the earnings perhaps . Richard one of the key things to look at is unemployment figures jobs numbers are interesting. Lets see how they carry on. Employment will be a key factor. We had a lot of reasons for employment to cut off from it we have ai coming in, is that going to cut jobs . We have seen insulation in wages. Is that going to impact jobs . Jobs numbers will be probably the most important indicator to look at over the next six months. Haidi how are you, are you playing this stage of a pretty nice and fundamental recovery for china even as we have seen that bull run in hong kong . Richard richard i am very well, thank you. As far as china, it is looking pretty good. Since we had the lows in the 25th of january, the markets have come back on quite well. I would like to think that the reason i was looking at that was because china cannot stay so for so long. We had this big sluggish period postcovid when china really was not going to recover, and i think the chinese authorities have taken lessons from the wreck of the world. You have to stimulate at times like that. I would have liked to see a bigger stimulus we didnt see one, but still there has been 1 trillion or so put into chinas markets so we are starting to see recovery. Probably the biggest hurdle to cross now is the Property Market where the authorities really have to figure out exactly what they are going to do there. Are they going to bundle up the bad debt, are they going to try to restructure . How are they going to preserve the orders that have been built or have posts . I think chinese authorities will get their act together on that and then we will be positive on china and especially positive hong kong. Haidi tactically, what do you like some specific areas you will be looking to benefit in this stage of the recovery . Richard going by what i said earlier, the trend is your friend. Momentum is where its at. I think there is a lot of scope in. It may not be completely in the mad 70 days. We would be looking at Companies Like nvidia that have come through in the last six months but also a bunch of other Chip Companies benefiting from this. That is in the global markets. In the china market, when again, the tech sector is important, its the dialing sector of our age. Previous ages had television, shipbuilding, railways. Our age is czech and chips and that will continue to be important worldwide. Annabelle which areas are you looking at . Which part of the value chain are you in right now and where do you see the biggest opportunity . Richard components are important. Where the real moves seem to be happening is in chips, i think that is quite important. The ev cycle will continue, clearly, china has put an enormous amount of investment into the. I was in china earlier this week and it is amazing how quiet it is on the streets. Annabelle it is incredible. What people dont realize when you are not there, and lets face it, we are sitting in hong kong so we think we are there, but we are not, the developments that have happened in the last four years are incredible and added a sign of things to come in the west. Haidi Richard Harris is ceo at port shelter investment management. Thank you. Lets look at the big movers in the early out of the session, 10 minutes into the start of trading. We are seeing gains in this business of 3. 5 , sony. In the previous session we saw the full year operating profit forecast beating estimates. The strong outlook there at play as well. New vehicle models and the weakness in the currency benefiting. Even though we had spoken about the fact that we havent seen as much of a correlation between the benefits for the automakers and the weakness in the yen that was when they that was for nissan. Also sony, the beat, the stock is trading at a 52week low at those levels on your screen. The plans for paramount were discovered, including a sale of its Famous Studio lot, the historic Paramount Pictures lot in los angeles as part of the plan. If it succeeds in buying the parent company. So we are watching sony. Nippon steel is another one on our radar planning to raise 1. 6 billion despite its overlaid u. S. Concerns. Pushing ahead with the debt fundraising despite worries about the planned acquisition of u. S. Steel that may not actually go ahead. You can watch some of the stories you need to know to get your day going in todays edition of daybreak. Bloomberg subscribers can go to dayb under terminals. It is also available on the bloomberg anywhere app. You can customize it so you only see the stories on the assets you care about. This is bloomberg. Annabelle chinese president xi jinping has secured the hungarian Prime Ministers support for his pushback against u. S. And e. U. Claims of chinese overcapacity. For more, lets bring in chinese not as correspondent Stephen Engle. This is perhaps beijings most critical relationship in the e. U. Stephen absolutely at a time when more have been vocal with their criticism about chinas trade practices. There is an investigation about potential state subsidies into the ev sector and the threat of dumping those products on the European Market which has look at the automakers in germany and italy and elsewhere worried. So this is an opportunity for xi jinping to go to a beijing friendly government, one that is also by the way, cashstrapped. Viktor orbans government is cashstrapped. Since 2019 there has been a flood of Chinese Investment into Eastern Europe, cheaper land, cheaper labor and a lower Corporate Tax rate of about 9 . A lot of incentives. In hungary is in that inbetween state, part of the European Union, but also according to chinese and south korean investment. South korean battery makers are there. Its a delicate act in the e. U. And probably wrinkling a few feathers in brussels. Ursula von der leyen being more vocal. But xi jinping has found a friend in the hungarian Prime Minister. Lets bring up these quotes. Very telling. They are obviously written by the various propaganda departments. Xi jinping says, we will strengthen cooperation in our development strategies, deepening ties in trade, finance and our economies. He also wrote an oped, on the path of Chinese Development and modernization, we see hungary as a traveling companion. Viktor orban, Prime Minister of hungary, know this was clearly written by the Chinese State organs because the word unswervingly is not necessarily used anywhere else in the world except within the propaganda departments of beijing. [laughter] this is a chinese readout of what viktor orban told xi jinping essentially, hungary does not identify with the rhetoric of socalled overcapacity or derisking. Hungarys determination to deepen corporations china is unswerving and will not be interfered by any force. That is where they are now. A strategic move by xi jinping to go to a very friendly e. U. Member nation to get this investment. [laughter] haidi who do you see benefiting when it comes to corporate when it comes to companies here . Stephen since 2019, a lot of chinese and south Korean Companies have moved into Eastern Europe because of the cost factor cheaper labor, cheaper land. Access. Hungary is close to southern germany and the manufacturing of automobiles there. Also close to slovakia. So you are seeing already byd announcing in december it is going to build its first plant in europe and that takes a long time, but it will pay dividends because then the skies made there are not considered to be e. U. Imports, they are domestically built. That is why hungary is such a critical player here. We also had a headline yesterday that nio is in talks. Others could be making moves. There could be an announcement today as xi jinping wraps up his visit, huawei is expected to sign an agreement with hungarys main Telecom Player that viktor orban is trying to make a national champion. Catl, the big battery maker, also building facilities there. As have the south koreans. Samsung, sk on, they have also been in the hungary market. So you can see absolutely that the trend is actual reality. Haidi chief north asia correspondent Stephen Engle there with the latest. We will have more on trade relations between china and europe coming up in our exclusive conversation with the chamber of commerce in china, the European Chamber of commerce in china. Coming up, the latest on the tech headlines. Annabelle thats right, bloomberg has learned apple plans to push many ai tools across its devices through Data Centers Using its own chips. Sources say highend m2 processes will be used. Apple is expected to lay out its ambitious strategy in june. Chinas largest chipmaker smic, missed quarterly expectations blooming sluggish microeconomics conditions. Net income was 72 million on revenues of 1. 75 billion. Both came in below analyst estimates as Consumer Sentiment remained weak. Smic may still get a boost with smartphone imports from huawei expected to double this year smartphone chip orders from huawei expected to double this year. There was a lukewarm forecast for the fiscal year, the ceo of arm. He told us what he is still confident of longterm growth. We are forecasting growth this year at north of 20 . We also signaled to the markets yesterday that in 2025, 2026, 2027, we see growth growth. We are very confident of this growth rate Going Forward. I want to focus in on the cell phone play because thats where your bread and butter has been in history. How are we looking, is the market looking strong for you . We have many mixed messages coming from china demand, for example. Over all the cell phone market has been having a good growth rate. Our version 9, now being used in many of the premium mobile phones drives a high royalty rate for arm. There are also complex cpus that go into that. That is also better for arm. One of the things we are seeing, not just with smartphones, as these ai models are moving so fast, the hardware cant keep up with the software. The Software Innovation is happening so quickly that by the time the hardware is ready to run those models, everyone wishes they had more for performance, more efficiency. That means it is driving growth in our licensing activity. People are looking to do more and more, design chips faster and faster, and that is all good for us Going Forward. So i think Going Forward so we are going to see more innovation happening not only with smartphones, but across all tech devices. What has been keeping up is your valuation. Boy, do you think there is too much exuberance around it are meronk ai valuations out there . Are you going to make the most of it by we were told about this at one point, listing in the u. K. Too . I dont think much about valuations as much as i think about the ai opportunity, which i think is under called in terms of just what it is going to mean relative to society and what it can do for the planet. I think again, we are in very, very early days in terms of the capabilities of what this could unleash for our society. Incredibly excited to be part of it, but i dont think we are part of a hype cycle at all. There is a lot of innovation taking place. Frankly, the innovations we are seeing is just breathtaking, so i dont personally view it as a hype cycle at all. Haidi much more to come on daybreak asia. This is bloomberg. Annabelle the bank of england governor Andrew Bailey, says there would be a case for cutting rates in the u. K. , if economy plays out as expected. He spoke to us after that, he voted 72 to Voting Rights steady. Our forecasts are conditioned on several things. One of them is the market curve to set them up. So it is important. If we find that the forecast with the market curve produces the best judgment, which has inflation below target or above target or not at target, we say that a sort of horizon, we say, this is where we have got to. The best judgment is that. Now, it follows, i think, the comment i made earlier, that what we are saying is if, if the world evolves as that forecast suggests it was, probably the case will be there for a less restrictive policy. Everything is conditional. So is doing a live meeting it june likely . [laughter] that is a different question. The key point i would make is that we have changed our view on the likely persistence of inflation. Or the secondround effects. It is good news. We think there is evidence to suggest that it will be less pronounced than we thought it would be. But that is a judgment. For me, i am looking at the particularly the indicators, services inflation, pay, the quantity side of the labor market, to really judge that persistent question of how it will evolve. There is an assumption, looking at history, that once you cut, you continue cutting. Without prejudging what you will do, can you give us an idea of how you see this cycle different to others . What is quite interesting and something we looked at during this round, is that most of the cutting cycles, cycles in inverted commas, have actually been prompted by some sort of shock or other. Rather than being what i might call in natural cyclical, sort of, we have reached the top and now we go down by restricting the curve. You are telling us that because you arent cutting in a recession, it could actually be oneanddone . Well, i think that would be unusual. But i said earlier, nothing is settled. No fait accompli. Nothing is ruled out. Governor, what can you tell us about the play between Interest Rates and qt . Some may find it confusing because they are pulling in different directions. The message we have always given with qt is that qt operates in the background you for us. We dont think it has large impacts in terms of markets. The other point, the critical point, when we sit down to decide on what to put the Interest Rate setting as, we take into consideration everything, including markets, obviously, and markets will have absorbed, if you like, the impact of qt. So in other words qt is always , there. If there is any effect of qt, it from qt, we will capture it in the markets and then we will set back rates to reflect that. You dont think it is confusing for markets . This kind of pull . No. I dont think so. You are not expecting to end it before the end of the year . I dont think there is any difficulty if we get support if we get to the point where we will have to cut Interest Rates, to have qt going on as well. Haidi dot governor Andrew Bailey there with bloombergs francine lacqua. This is the picture when it comes to stoxx 50 futures. Looking at we will see that optimism carry through from the asian session. So much of this is really doing a repricing of the same narrative for us, indicating the return of that goldilocks situation there. We have seen european stocks in the last few session setting that high record from us on thursday we saw u. K. Benchmark stoxx gaining as we saw the boes latest policy decision driving wages and rate cuts there, as well. We will continue to probably see some of those gains as we get into the start of trading. German dax futures also looking perky, and 0. 25 higher. The index seeing a potentially sixth straight day of gains. More to come on daybreak asia. This is bloomberg. Annabelle youre watching daybreak asia. Taking a look at how stocks are performing 30 minutes into the session right now for japan, korea and australia. A bit of upside is, through. Its a little unsurprising given the wall street session. We had softer than expected jobless figures that reinforce the case for the fed possibly to be able to cut late this year. Its also the momentum we have seen over the course of this week. The nikkei is up 1. 5 . We are tracking any lanes around the japanese yen. And a bit more joe bunning this morning from japanese government officials. A big day in japan. We have 600 companies that are reporting their numbers on friday alone. Others coming out yesterday after the bell. Some of the ones we are tracking in particular screen holdings. A very exposed to chips, of course. Pushing through an operating view that missed estimates. Also in the ai tech space is sunco, its first half operating forecast beat estimates. This one is in the tourism sector, its slumped after fullyear forecast missed estimates. And this one is japans answer to ebay, mercari, raising after its fullyear net forecast beat estimates. Some of the companies we are tracking. A big day for japanese companies. Around 600 names we are watching crossing the wire later. We are also tracking some of the breaking news one of that relates to ubs. We are here and perhaps a new Incentive Program could be on the way. What we are hearing is that ubs could be introducing or could look to introduce, a reward system for Investment Bankers will refer clients to the firms Wealth Management business, is what we are hearing from sources. Some bankers would be in line for payouts in asia and europe when they successfully attract new money into the lenders Private Banking unit. Again, that is according to people familiar with the matter. The referral fees could be a first for the zurichbased lender from and we know that ubs is really trying to build up its division after the acquisition of Credit Suisse, haidi. Haidi the European Union chamber of commerce in china has released a new survey this morning suggesting the country is losing its luster for investors. 13 of firms serving to see china as a top destination for foreign investment, the lowest level since records began in 2010. It is down 70 percent from 2021. Lets talk about the result of the survey and implications with the president of that e. U. Chamber of commerce in china. Jens eskelundhansen. These are stark findings. Talk to us about the contributors and what jumped out most to you from the survey results. I was actually a bit surprised myself. I thought we have seen peak pessimism around q3, q4, but these responses indicate to us that a downward trajectory of the Business Confidence level in, china it has actually continued in the European Business community. One thing that i think stood out in particular is that, by a wide margin today, concerns related to the state of the domestic Chinese Community is by far the biggest concern that companies have today. Last year there was concern about the chinese economy and the global economy, but right now it seems the weak performance of the chinese economy, demand in particular, is heavily on the minds of European Companies. They are beginning to adapt to this situation in terms of the set up future investments. Some are perhaps also beginning to look elsewhere to see if they can get a better return on their investments. So right now it is not perceived as being particularly easy times for European Companies. Certainly we do not see anything in the data that we should be sort of on the rebound in china right now. That is the thing that perhaps occupies as most right now. Haidi this comes of course at a critical time. We have seen xi jinping doing a bit of a victory lap in these carefully chosen destinations for his european tour. Of course, we are also contending with that concern over the issue of overcapacity in chinese exports. Does that way into what we saw it does that weigh into what we saw in the survey, the idea of the unfavorable operating environment and harder competition for Foreign Investors . Jens we actually went out and asked our members this year if they were seeing overcapacity in the market. And just shy of half of our members indicated that they are indeed seeing overcapacity. Whether you want to use the term overcapacity, or oversupply, for flow domestic demand, that it doesnt matter much, but the effect is the same for our members. We have 71 of our members seeing overcapacity, indicating that they see pressure on prices. 42 of those fees see that price pressures are very significant in the market. It is beginning to affect profitability now. It is also beginning to affect markets in china where 42 of our members told us they are seeing market sales in china. It should be set, however, that at the see 29 of our members seeing profits in china. So it is not a uniform race to the bottom as far as European Companies are concerned. European companies can still compete. But as it is right now, there is big pressure on margins. Inventories are decreasing. There is simply more product to go around in a great many industries, particularly within pharmaceutical, atv, telecom and machinery, we see it i. T. , telecom and machinery. Adding annabelle to that pressure perhaps is a bit of the decoupling you are seeing as well between headquarters, is that right . Jens that is correct. And i think what we see here perhaps is an instance of long covid, where local subsidiaries perhaps have not managed yet to create that seamless, close connection with head office that they had before. Simply also the fact that when you look at the number of european executives on the ground in china today, it is actually significantly lower than it was before covid. One of the consequences when you have very highly localized local operations, is that perhaps you lose a little bit of the linkages to head offices. What we saw coming through pretty clearly in our survey is that we are actually seeing companies missing out on investments in china because it is seen as being more cumbersome, less seamless to communicate around the head office and creating an understanding with the head office. So that needs to be a focus of, again, on how to make it more attractive for foreign executives to also come to china and try to rebuild a little bit that precision that china had position china had back home at offices. Annabelle one of the more positive findings in the survey is a notable increase in the number of respondents reporting market opening in the industry. A big push for that. Why do you think that is not translating into greater investment . Jens yes. As it is right now, its about the state of the domestic economy. If you believe you can find better returns elsewhere and you believe geopolitical tensions are going to increase, and maybe you look pure best a little bit. Three quarters of our members have been out in the wake of the pandemic and in the wake of russias aggression against ukraine to go out and the stress test of their supply chains and if you find something you dont like, of course, you go out and make changes. A number of our companies have found that maybe they have become too dependent on a single location. Its important to emphasize, yes, our members do recognize this. These are free travel arrangement from 12 European Countries visafree has been important. There are 27 countries in the e. U. , still 15 to go, but we are beginning to see executives coming out here in great numbers because of that visafree travel. Now you can decide, i want to go to china next week, you couldnt do that before, you would need to plan months in advance because it was so cumbersome. So we are starting to see positives. Maybe the European Union should consider making it easier for the chinese to travel to europe also, that would certainly also help us. Another thing was individual Income Taxation exemptions but sort of allows certain concessions related to International Schools and housing expenses. That has been extended for another four years, something that helps a great number of our members. We want to see more of these kinds of initiatives. We have seen positives, but it hasnt really been a that has matured enough, that swing the move. Still when you look at the regulatory environment, unpredictability and ambiguity in relations, remained a big issue that companies have to contend with. Haidi the other hat that you where is dash. We heard from your ceo speaking a few days ago about the opportunities becoming available for european investors to move in and buy chinese factories for dates prices as the americans were about. Is that a trend you are seeing, do you worr that the overall different sentiment in investing confidence from european investors will potentially mean that some of those opportunities that are structurally becoming available are then missed . Jens , our executive made is actually something that we see it reflected also in the survey results, in the sense that companies that are active in terms of manufacturing for export markets, tend to respond more positively than companies that are in china for china, so to speak. So, i think it is absolutely correct. Also because we have seen actual deflation in china where we have three years of high inflation in europe and the united states. So from that perspective, china has increased on its cost competitiveness. So absolutely, if you are in china, it is still a very significant and promising market. My expectation is that china is going to retain is very high share of global exports. It is really the domestic market that is concerned right now. Annabelle thank you so much, that was the president at the European Union chamber of commerce in china. We will have on daybreak asia. This is bloomberg. Annabelle we are a few minutes away from the opening in singapore. There will be watching ocbc, after its firstquarter quarter profit beats estimates. It made 1. 4 billion singapore offer for the remaining stake in wealth manager at east end. Lets get more from our reporter. We are seeing greater easton pushing through trading holds. What is behind offer . I think this is in line with ocbcs strategy tiktok on rising asian wealth. It already has hubs in singapore and hong kong and dubai and this move could help solidify its leadership position in Wealth Management. The offer is 1. 4 billion senior dollars. This is for the remaining stake of greater easton. Its a 30 premium from the last traded price. The plan is to do list greater easton eventually. I think this will help ocbc to keep up with the likes of dps and uob which have been working to integrate citigroups retail businesses, their units in asia. And bloomberg analysts also believe that ocbc does still have a pretty Strong Capital position amid all this. Among the three lenders, it is seen as the one with the greatest capital strength. If you look at its core tier one buffers, it is biggest. So this is the move, i think, in the right direction for ocbc. It is an earnings created for it. Haidi its been a pretty strong season overall for the singaporean foreign lenders. Avril indeed. We have gotten a couple of earnings beats already from the likes of dbs, so ocbc is in essence joining the club. The q1 numbers for the secondlargest lender in singapore is ocbc, we were expecting one point 8 billion singapore dollars. It came in at 1. 8. A 5 jump from last years print. This is fueled by the wealth and trading fees. We saw lending revenues well supported. There were concerns coming into this scorecard that we would see net narrowing. It came in at 2. 27 . There was a narrow way from the previous quarter but it is still better than estimates. Overall its a pretty good scorecard for the singapore release lender. Haidi markets reporter avril hong in singapore. Breaking news when it comes to potential Biden Administration tariffs on china. The biden government is poised to unveil a sweeping decision on chinese tariffs next week, one that is expected to target these key strategic sectors that have been a source of tension between the two sides. New levees rejecting that acrosstheboard hikes that have been sought by donald trump. They are set to target electric vehicles as one of the key areas to be in focus. And of course, evs, battery, solar, these are the trifactor of just some of the goods that the u. S. , as well as European Union, have complained have been a source of the big overcapacity claim for china, where of course we have seen domestic demand shrinking and cheaper exports letting the markets. This is a review of the section 301 tariffs first imposed under president trump. The Biden Administration is set to impose these new targeted tariffs across the key sectors. There are also expected to maintain existing tariffs as well. This will be one of the biggest moves from President Biden and his administration if this comes through in terms of his economic race with china and this increasing chinese and discontent being expressed over the issue of chinese overcapacity across key sectors. Annabelle yes, haidi, it sets the tone for the election later this year lets get more details on the bloombergs group we had earlier. Ubs is considering a reward system for Investment Bankers who refer clients to the Wealth Management business. It would be a first for the lender. For more on the school, lets bring in our senior asian finance reporter. You are one of the reporters that provided details for the scoop. Can you give us an overview of what ubs is considering here . Guest yes, good morning. As you say, ubs, switzerland largest banks, is mulling this incentive for their Investment Bankers who refer their own clients to the firms Wealth Management unit, according to sources. This would a flight to Investment Bankers in asia and europe if they are able to attract this new money to the Private Banking unit. And they would provide incentives basically. Its the first oneofakind for the zurichbased lender but theyre actually moving towards what Credit Suisse seems to have. As for as we know, the exact form of how the rewards and bonus system will work is still being fleshed out. No decision has been made. It could fall apart, as well. At this stage, it is all in flux. At this point in time some of our reporting shows that it is under discussion at this point in time. Haidi what are the overall implications than for ubs . Ambereen sure. It just basically shows how the ceo, sergio ermotti, is looking for ways to expand the lender invested assets. They have been competing with Morgan Stanley in the same space. They have said they want to be on par with Morgan Stanley. Ubs has also targeted grow into their wealthy client assets to more than 5 trillion after buying Credit Suisse last year, the run in deposits that brought its competitor close to collapse. Following that. A lot of this angus highlights and other player, which is iqbal khan who runs the Wealth Management unit. His previous career was at Credit Suisse where he had this system basically bringing Investment Bankers and its Wealth Management division closer together. It turned him into a rising star at Credit Suisse. And in effect, he is basically bringing in the same system that they had at Credit Suisse, but as i mentioned earlier, we dont know exactly how that incentive will take place, whether it is in cash or other forms, that is still being discussed. Haidi senior asian finance reporter Ambereen Choudhury there. Are the stories we are following, bloomberg has learned hsbc and standard chartered, are among major u. K. From suppressing Prime Minister rishi sunak to tone down restrictions on doing business with china. The banks arent lobbying ministers not to include china on the strictest category in the new national, security legislation arguing that this would impede business and trigger negative publicity. Goldman sachs has led major investment banks in posting higher profits in japan. Income rose by a quarter last year to about 250 million as fixed income trading gains doubled, the figure marked the highest earnings in 14 years from goldman sachs. More ahead here on daybreak asia. This is bloomberg. Haidi belle, looking at the reporting bloomberg has done when it comes to the potential rollout on Biden Administration tariffs on china, to be clear, these are not acrosstheboard tariffs we have seen from the likes of the Trump Administration those will stay in place, they have been largely unchanged but these will be for a more targeted sector wise when it comes to that fairly tricky industries we have been talking about as being sources of chinese overcapacity, right, electric vehicles, batteries, solar panels. Interestingly, we have also been looking at some of the other automakers, as well. We are seeing reaction in the yuan although i will say there are other elements building into potential weakness expected for the chinese currency, too. Annabelle interesting to note the reporting we got from the trade fair that closed a couple of weeks ago, a lot of the people who attended that were saying you know what, china as prices are just too low tariffs. We will you watching for any reaction from china and tracking ev names ahead of the open. Evs are one of the key areas or sectors that are in focus. Thats it from daybreak asia. Our bank markets coverage continues as we look to the start of trade in hong kong, shanghai and shenzhen. Her uncles unhappy. Im sensing an underlying issue. Its tmobile. It started when we tried to get him under a new plan. But they they unexpectedly unraveled their price lock guarantee. Which has made him, a bit. Unruly. You called yourself the uncarrier. You sing about price lock on those commercials. the price lock, the price lock. so, if you could change the price, change the name its not a lock, i know a lock. So how can we undo the damage . We could all unsubscribe and switch to xfinity. Their connection is unreal. And we could all unexperience this whole session. Okay, thats uncalled for. It is friday. Half an hour away from t