>> it is almost 10:00 a.m. in hong kong and singapore. i'm haslinda amin, along with david ingles. david: good friday morning. let's get to the top stories as we wrap up this trading week, routes in u.s. bank stocks waiting on asian markets, amid concerns of trouble. the financial sector could flag broader dangers ahead. we're counting down to governor kuroda's final act as head of the boj. most economists not expecting a surprise. xi jinping in beijing making their term as president, the national people's congress set to reaffirm his grip on power. live pictures out of beijing. we should be getting results of the voting. as we await that, have a look at where we are market wise. red and black tile, you see, top

left of your screen is australia,. down 2%. black indicates the score that is high, that is that something you normally see, a lot of that has to do with the banks down 2%. pulling it down more than usual. hong kong has taken out 2.5% on asia's high. malaysia, breaking news, we will talk about that later. bitcoin has taken out 20,000 earlier on, head of a couple of things. we talked about the boj, the jobs report later today. the u.s. inflation print next week. the banking story, derailed any plans of the fed to tilt more hawkish. how they plan to do that. as far as japanese assets are concerned, the nikkei, the topix bank index is up 20% since december 20 when the boj delivered that surprise tweet on

the cap of ycc. we are down 2.4. it should take us 25% since that time. dollar and 10 year bond, 145, higher. -- dollar yen, 10 year bond, 145, higher. what you don't have is the 30 year which is still at the same level. we will talk about the interesting move in the two-year overnight and how we are surprised at 4.8%. very quickly, banking stocks much in focus. 1% on the bloomberg aipac banks index. various measures across various markets. korea down 1.2%. joining us on set is the fed -- on the fed, jennifer garner, chief strategist at morgan stanley, visiting us here in hong kong. i was going to start with this

8% pullback in ems for this bank story is forcing my hand. what you think is happening and what is your hot take -- what do you think is happening and what is your hot take? jonathan: what is really interesting is the bull steepening in the u.s. curve, this dramatic fall in two-year yields. you tend to get these bull steepening's at the end of fed hike cycles. the market is debating how much further are they going to go? it's possible that this was -- this steepening tells us something about it, are we near the end? in addition, the dollar didn't rally very much. again, one of our thoughts about asia is really that these wiping growth differentials with asia and china re-accelerating once the u.s. is working through end of cycle issues, that -- there is price action that confirms we are on the right track. david: you have a call in the

banking sector, do you take profits in that? jonathan: we have been bullish in japan banks,. relative to the index. . w'ev -- we have had the catalyst in your control. the thanks in japan have re-rated a lot. they are trading at .6%, which may not seem high, but r.o.e. adjusted, it needs they are somewhat expensive. it's been a winning trade, a popular one. we think it is prudent to move to the sidelines, as of the note we put out a few days ago. haslinda: speaking of banks, we have to talk about the fallout from svp. is this just the tip of the iceberg? jonathan: i can't talk about that name specifically. what is obvious is there is an ongoing issue in silicon valley in terms of job headcount reductions, capex cutbacks, business restructuring. and we have weakness in the u.s.

housing sector. some of the private manager -- measures of rents under downward pressure. this debate rages, the u.s. economy is vast. other sectors are doing well. the debate over how strong u.s. growth is, is firming up. that curve steepen or, -- steepener with the two-year yields is important. it's negative banks in the sense that you have open the door to credit quality debate. it's almost not systemic for the large-cap u.s. banks. it's not where we are in asia were growth is reaccelerating. and asset quality concerns are much more prevalent in asia, backend a of last year -- of last year than they are now. haslinda: you seem a bit more upbeat about asia. for the likes of china, taiwan, korea, stay the course, do we do that after china came out to

say, growth is at 5%, much lower than anticipated? jonathan: we upgraded korea and taiwan in october. we follow that up with an upgrade of china. by the middle of january, all three markets were in strong bull markets up more than 20% from the trough. we had a pullback from china in february. much less of a pullback in taiwan and korea. on the sector basis, the big cap tech stocks, either they are working through their inventory overhang they built up last year. valuations got to cycle lows. they're looking forward in the rally were getting and earnings are covering the second half. take mobile phone handsets. big ticket branded handset demand, that has been weak out of china for three or four years. and it's likely to be quite strong in the second half. do remember that chinese pmi's for both manufacturing and services hit tenure highs in

february. this is an economy coming out of the covid shutdown with momentum. david: jonathan gardner will be staying with us, for a quick glance at some of the index targets out of morgan stanley. we'll talk about that in a couple of minutes. and some of the key targets. flat in topix, more upside in store in the hang seng and msci china. plenty more ahead. funny quinn is a new york with the first word news -- vonnie quinn is a new york. >> sources tell bloomberg that founders fund advice company to pull money out of silicon bank. the capital fund. sources told us that sc -- sv be ceo asked the bank science to stay calm amid concerns over its financial position. svb announced a $2.25 share sale after a loss in its portfolio. the only goldman sachs banker tried and convicted in the level

1mbd scandal has been sentenced to prison. he was convicted last april for violating u.s. bribery laws and laundering money. goldman sachs paid more than $2.9 billion to u.s. authorities and more than $5 billion globally for its role in the scam. the u.s. is stepping up its a chips collaboration with india as the south asian nation seeks a bigger role in the supply chain. congress secretary, gina has traveled to india, to boost tip incentive plans. they will discuss plans to avoid over subsidization. india has offered $10 million. the u.s. is imposing sanctions on five chinese companies and one person accused of supplying parts iran uses to build drones. u.s. intelligence says some of the drones were used in ukraine by russia. the same drone was delivered to yemen rebels.

australia's prime minister talks with his indian counterpart. on a trip that reflects india's place at the heart of his approach to the indo pacific. the two leaders began the visit with a cricket match between the two companies. he has also announced an increase in joint military exercises, describing india's a top-tier defense partner. global news 24 hours a day on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries around the world. i'm vonnie quinn. this is bloomberg. david. david: just ahead, we will get more on the bank of japan with the former member of its policy, joining us, takahide kiuchi, coming through in 22 minutes. also coming up, we are joined by the dean of the wharton school of business, erika hayes james. we get her thoughts on global economic prospects. keep it here. you're watching bloomberg. ♪

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david: index projections out of morgan stanley. various equity benchmarks, still with us on set, jonathan gardner, chief strategist at morgan stanley. we were talking through the break, underweight u.s., overweight part of the world. help us understand the broad thinking. jonathan: it is diversion economic parts, particularly out of china, but also the china's -- companies that trade with china, like korea and taiwan are doing better than the u.s. with that diversion growth earnings revisions.

we are seeing revisions unfolding in asia. at the time our colleagues in the u.s. expect significant downside in earnings estimates there. david: that pmi number that china released, i think it was about a week and a half ago, was higher than what the market expected. to your point in earnings revisions, where you starting to see which specific markets that is, the trough, pickup in some cases? jonathan: the key to this china recoveries the consumer, both in services and goods spending. that is where we are seeing it start to form. for the big cap tech stocks were the earnings estimates revisions are from down, the third quarter into the fourth quarter stabilized. in 2024, it matters the most. haslinda: apart from china, what about the rest of emerging markets, who are bracing for more volatility at least in the

short term with the fed, data dependent, not just data dependent but collectively in total. what does that mean for ems? jonathan: the one point we have made with the fixed income colleagues is that sovereign balance sheets across emerging markets are in a stronger position than they were previous fed hike cycles. we've had problems in low-quality ems sovereigns already going into the imf. they are not mainstream equity index constituents. indeed, last year throughout most of the initial phase of the fed hiking cycle we were bullish on markets like brazil and indonesia that you would not be bullish on in the fed hike cycle. we've scaled those back to go fully into our north asia, taiwan, but we are not anticipating those sovereign issues we had in the past. em sovereign debt spreads have wide enough to july, but they have been tightening since then.

haslinda: i want to read what is happening in treasury market. we have seen angst in the bond market, to year treasury yields extending to 10 basis points. how might this play out in asian markets, jonathan? jonathan: well, i touched on this earlier. it's tremendously important. the full steepening in the u.s. curve -- bull steepening in the u.s. curve is indicative when investors are questioning whether the slowdown is biting in the u.s. what that means is it firms up the case for rotation out of u.s. assets, u.s. equities which is our goal and into part of the world were we went through some -- where we went through some significant problems in terms of earnings revisions. they fell about 25%. china's slowdown was severe. we're in a different place.

you have to go back to 2009 to find a sharp diversions with asia getting through his problems and recovering very strongly. at the same time the u.s. is working through his issues. david: i will tie this yield story to the banking story early. we'll talk about the em basket in a moment. to your point, might this growth slowdown and the banking story, might it be a symptom of higher rates? how are you accounting for where the fed needs to go as far as rates go? does that force the fed to be more cautious instead of two hawkish? jonathan: we have a whole sea of data coming up on payrolls. but it's going into the mix of the fed's decision point. we're expecting two final 25 hikes. to some extent the market has been getting ahead of itself on this fed hike view. fundamentally, we think we are in a disinflationary environment

in the u.s.. we think there is more fragility in the u.s. economy than might meet the eye. our earnings estimate, $195 eps, from my colleague mike wilson, that is below current consensus that is to 20. -- 220. we have upside to earnings estimates in our coverage. david: what is the eps growth? jonathan: for asia, we think we may get cumulatively this year and next year, 15% positive eps growth in u.s. dollars, above consensus. haslinda: i am wondering, jonathan, the risk out there, what is it for you? jonathan: we have not touched much on geopolitics. it's always there. we are nearer of multi-world dynamics, very complicated geopolitical the nymex. that can -- a geopolitical

dynamics. that can affect discount rates. we are confident in the earnings recovery story but valuation that investors put in it is affected by geopolitics. haslinda: of course, the upside to the dollar if that scenario were to play out how might that way, or shape your projections? jonathan: the dollar is tremendously important. it got to a 40 year high at the end of the third quarter in real terms. it fell very sharply until early february when it regained about one third of those losses. broadly we think the dollar does weaken because of growth differentials opening up, between the u.s. which is slowing and the rest of the world which is recovering, including europe which is doing better than what was thought. if we are wrong, in the dollar makes a new high, that would represent an aggressive tightening of global financial conditions. it has a negative effect on eps for most of the embassies,

particularly those denominated in u.s. dollars or hong kong dollars. so, it would be associated with the weakening if the dollar what to do that. it's not our view. despite this aggressive steepening in the u.s. curve, the dollar was flat to down. david: to your point, what the market attaches to, moving -- we're moving from a decade where rates were at zero. 4% or 5%. is that affecting how you are using the discount rate you actually use? jonathan: one thing to get across is how cheap the major embassies were last october. the hang seng index went down. it was only cheaper for about two or three weeks, the height of the global financial crisis. our hang seng target of 24,500 only assumes the multiple gets factored 11 times.

it does not get to the usual midcycle 13 times. yet we would still get a significant upside. unlike the u.s., where we have an earnings issue in multiples, we are coming off distressed valuations last october. david: how does india fit into your strategy? jonathan: india's the exception, the only major em that is reached a history. it has derated. there is nothing particularly problematic in the indian macro story. the market was bought up by mutual fund flows and had a rich multiple at the same time as north asia. japan was exceptionally cheap. david: jonathan, nice to see you. jonathan eric garner -- jonathan gardner, to strategist at morgan stanley. just ahead, we'll take you through -- we will continue the coverage on what is happening in the banking sector. as you probably saw, banking stocks are continuing to come

under tremendous pressure following the routes we had in the u.s. worse than almost -- worse in almost three years. more on the fallout of silicon valley bank. this is bloomberg. ♪ get help reaching your goals with j.p. morgan wealth plan, a new tool in the chase mobile® app.

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david: somewhata run of the banks 1.7% on the sector benchmark. this is a breakdown within the specific asia pacific banks, tremendous pressure. curious to see what happens when india opens up. the names are still not moving. when the market opens up in an

hour. let's bring in belle. she's been tracking the story for us. the pressure continues, here. more are telling their funds to avoid the specific bank in silicon valley. annabelle: we have been reporting on this this morning. to give context on one the bank is, it is based in california it came to the vc sector. where it is feeling the pain point is the collision we are seeing between the bond market crash and the tech market crash. you take a look at the history and the recent history of svb, this is a bank that rode the vc wave. there was money coming into the startups and was finding its way into svb bank accounts. what svb was doing with the money is similar to what other lenders were doing, safe securities, like securities. that pork for a while. -- that worked for a while. then it could also start to

raise a little bit of income from those models. rising yields in the bond portfolio. what happens is when you get the environment where the fed starts to raise rates it puts pressure on the vc industry. they're not able to take as much cash and there's not much money going into the startups. but the existing companies that cannot manage, they are still rising in inflation, that is draining money out of the account. svb, long story short, has two raise capital to cover that cash crunch they are facing. so they are looking to take a loss on an asset. a huge loss of $1.8 billion. and looking for a share placement to raise more cash. david: it was quite a big -- exercise to raise the money. to the point you are making earlier, there are problems unique to the specific bank.

there are also factors that affect all other banks. the macroenvironment, rising rates. talk to us about the systemic risk. broader risk to the banking sector. markets are acting like there's something there. annabelle: it is interesting when you talk to different people. we did interviews this morning. some saying look there are no big issues here. the risks are at svb, they were specific, they had a concentrated investor base. when you look at other banks, they have more diversified customers, products as well. they can better withstand this. then you had an interesting interview with quil intelligence. they said that the issue is deposits are starting to pull their funds and put; them into money market accounts because they can get a better return on investments going into those funds on the 5% level. that capital withdraws putting pressure but specifically it's

more on the small or medium-sized banks. they are the ones losing out. david: annabelle with the latest. she will be back to talk us through this. very quickly. have a look at where we are. we showed you a couple, some of the regional benchmarks. then you go one level down. we have the topix banks index, 2.4%. that has run up quite substantially on the back of a boj that should be coming out anytime on the latest policy decision. will they do something on rates or set things up as we make our way into a new era of the boj. to year yields,

david: just a minute to 11:3 in

tokyo0. that's the bank of japan. where the powers are gathered in could give us the latest policy settings and art the end of an era, ten years with governor kuroda at the helm. down 1.2% in the cash market going into the lunch break. we're focused on the banks, on the back of expectations. maybe the boj will do something to provide a bit more profit news as far as i is concern -- is that is concern. jonathan gardner talked about how maybe the valuations in these banks may be to rich. morgan stanley's pivoting away from the banking sector to other places. dollar-yen, .1%, stronger on the japanese currency. 1.5% to upside. right. the bank of japan is now out.

let me just have a look. there early. -- they are early. no change. the bank of japan has maintained the yield target at zero. they have left forward guidance on rates, unchanged, number two. the boj says, we will add to easing without hesitation. not new. it is a vote 9-0. a unanimous decision. they will keep buying 10 year jgb's at a fixed rate, each business day. in case you're missing it, that is a live view of the bank of japan, where decision is coming out now. the bank of japan has maintained the balance rate at -.1 percent -- -.1$. it is weak on the back of this decision. we are trading about 136 on

dollar-yen. no change. last meeting there, of governor kuroda. boom. the market in some ways was positioned for some sort of change we did not get. you're seeing a reversal of that short dollar japan trades were higher. session highs, 136.73. the boj adding that they see a high level of uncertainty for japanese economy. in case you missed it, unanimous vote out of the bank of japan to keep policy settings unchanged. let's bring in a kathleen hays. our policy editor. i want to start with the u.s. jobs report but this is taking president. kathleen: anything that kuroda has said since the january meeting with support that, there is no need to change, even though inflation is running twice the 2% target, over 4%

year-over-year, the consensus view of the boj, the view of governor kuroda is that there's a lot of uncertainty about the economy. he's said a lot of increasing inflation is due to supply, materials prices, electricity prices, things that could reseed and bring inflation down. the other thing to remember is just yesterday, fourth quarter gdp, final number 0.1, it had been 0.6. this is the data that kuroda could have pointed to. they could've pointed it to and say, we don't know inflation is going to be. the incoming governor, let him decide what is next. david: let's bring in our next gas. takahide kiuchi, also former member at the bank of japan. thank you for joining us.

takahide: the decision, i think december governor kuroda rose the long-term. i think this decision was made by the boj's executive staff. mr. kuroda accepted this change. he didn't leave it to the staff again. he wants to keep the positive stance to keep it to the end of his term. that's a result of the decision today.

it's a big problem for the bank of japan. not just a problem the boj is facing, you have to purchase a certain amount of jgb in keeping the framework in control. the reform of the ycc, in the june meeting, in the worst-case. he may expand the fluctuation range again or remove the fluctuation range, to restore the stability of the financial market and reduce the amount of jgb purchases from the bank of japan. that's a production in the near future. david: you touched on this, based on what you just said based on your expectations for incoming governor. do you think interest rates are too low and the japanese yen is

too weak? takahide: i think they are right to revise or review in the coming several years. i think he may implement a change to keep the stability of the financial market. he has to make some killers or -- considerations to the government. he may take a gradual step. i think he may revise the ycc. it's not followed by another round of reform. after the change of the ycc, he will change the status of the goal, to make it a longer target. that will be a precondition of

the big change of financial easing. kathleen: the last thing you said was the governor will push to revise the accord, is that what you are saying? the policy accord which targets 2%. how will he push to change it? you've been a critic for a long time of the boj's extraordinary stimulus. what is you going to do -- is he going to do? takahide: he may have made the boj's policy less flexible. that could be a problem. he may change the status of the goal in the process of revising the accord with the government. i think the discussion could be tough. it's not likely that they will

agree in the near future. i think he wants to change the accord and make the boj more flexible. there's a consensus between the government and the doj decision. but the running party, the group, opposed the change of easing and 2% goal. due to the impact of the political group, it takes time for the government and the boj to reach the agreement over the change of the accord, including the change of the goal. that's possible in the second half of this year or near the end of this year. kathleen: in terms of the conciliation's, being made to the government, this is something that has been interesting to me for a while.

you're talking about the lvp. one of the bigger groups, the party, a very large budget deficit in japan, doubling the defense budget, a desire not to have to raise taxes to pay for that. is that what you are talking about? if that's the case, what is that going to mean for everything that is going to stay as is? you are saying that much is going to happen. he said there would be some kind of tweak in april, what kind of tweak would that be? takahide: i think mr. abe's group is too powerful. they tend to argue. i think the policy, that has

fiscal considerations. i think that is a problem. they have some ideas to restore the stability of the condition. i think of the group opposes both changes in fiscal policy and the easing matter policy. it takes time to change, to reach an agreement of change of the accord between the government and the boj. eventually, it may reach an agreement, maybe by the end of this year. because, mr. abe and his group may need something for the easing matter policy. they may have much stronger stances to keep the policy. david: i want to ask you about

something that is significant taking place in japan. these wage negotiations. what do you think is the outcome of the negotiations? if the workers get what they want how does that accelerate any normalization that the boj planned anyway? takahide: the result will not have a big impact. it is not likely that we can see the kind of positive spiral of increasing wage and prices. the recent increase of price and increase of wages could be temporary. i think the growth rate, price rate, will decline next year. as for negotiations, taking place, we'll increase more than 1%, the highest of the 25 years.

that is a reflection of the very high rate, the highest over the four years. but, i think there is no chance that the rates will increase. companies that react to increased wages, exceeding the inflation rate. in japan, companies cannot reduce, cannot cut basic salary, due to to the social role -- to the social rule. if the company increases wages are the the inflation rate, the price declines next year, companies cannot reduce salary. as a result, the companies will increase wages, but it is still lower than the inflation rate. david: it's a bigger commitment. apologies, for cutting in.

we're out of time. thank you so much for coming on the show. executive economist at nomura, institute. kathleen hays there. you can turn to bloomberg tli . the unanimous decision, no change at the boj. vonnie quinn with the first word news. >> the federal reserve is assembling a new crypto focused team to help ensure it is on top of developments in the asset class. the vice chair will help bolster the fed's oversight abilities as the central bank works on crypto guidance. u.s. bank regulators have taken an aggressive posture on digital assets is the collapse of ftx. u.s. lawmakers have accused norfolk southern of lacking transparency following the chemical spill in ohio. its ceo saved a grueling after

hours -- after another one of its trains derailed in alabama. >> i want to begin by expressing how deeply sorry i am for the impact this three ailment has had on the residence of east palestine and the surrounding communities. i'm determined to make this right. >> a new york judge has ordered jp morgan to turn over more records from the ceo to the u.s. virgin islands. the orders related to a lawsuit accusing the bank of facilitating jeffrey epstein's sex trafficking. jp morgan has denied the claim that dimon had a role. it's suing the former ceo. global news 24 hours a day on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries around the world. i'm vonnie quinn. this is bloomberg. haslinda: still to come, our exclusive interview with the de

novo -- of -- with the dean of wharton school. this is bloomberg. ♪ it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david! connect with an advisor to create your personalized plan. let's find the right investments for your goals. okay, great. j.p. morgan wealth management.

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haslinda: welcome back. coming live from the wharton global firm. taking a look at markets, under pressure, given the volatility we have seen from the u.s. banks. back to the forum. i have the dean of the wharton school, erika james. good to have you with us. it's a challenging environment. we have a high rate environment, inflation is running hot, how is it impacting business? >> applications the business school run contradictory to the markets. in environments where there is a good economy we are likely to see a slowing of applications. when the economy is down, we are likely to see an uptick because people want to prepare themselves for it. that is the perfect time for students to go back to school. haslinda: give me a sense of where demand is coming from. china counts for 16% of your

overall student population. are they coming back with the reopening of china? erika: wharton is one of the most prestigious business schools. we're an attractive option for students from all over the world. china in particular. even though there are some political issues that make it difficult, we remain very open and receptive and eager to invite chinese students into our programs. there are many students in china who look forward to it. haslinda: we know some is that schools are easing in terms of restrictions for students and going into the programs. what do you make of that? is that something you're comfortable with? erika: wharton is a quantitatively focused school. we're measuring the different factors that go into what makes student successful when they are here. tests are one example. there are so many other factors that go into this decision.

we'll roll with the punches regardless of how we evaluate students. we're looking for the top-quality. we have a number of different ways to measure that. haslinda: how far are students reflecting the broad trends, is clear greater instance -- interest in sustainability, climate? erika: this generation of young people are so enthusiastic about wanting to do things that have a mission. the care about the organizations they work in. they care about the planet they live in, about the people around the world. they have expectations of their schools and organizations to facilitate opportunities for them to engage in that work. esg is a perfect example. one of the things we have done recently as launch a new esg major for students to become equipped in understanding how to lead organizations through the decision-making and regulatory processes associated with it. haslinda: how about tech? we are seeing a downsizing of

tech companies. we know 40% of your students fill the gaps in tech companies. might that play out in terms of how you are looking at your tech forces? erika: yes. i also believe what is happening in the tech world is temporary. it will come back again. it will be stronger and more robust and attractive. we need to make sure we are equipping them while they are with us for their two years at the wharton school, whether it is a technology, entrepreneurship, finance. we're prepared to provide opportunities for students. i'm convinced tech is not lost on us forever. haslinda: emerging from the pandemic, what are some lessons learned? erika: one is that we were not prepared. it's a challenge. we often go through these cycles with crises. we let our guard down and we

assumed we were not going to experience another one. history tells us another one is just around the corner. my advice to leaders is if you spend the time to learn and reflect on what you just experienced from the last crisis, you are better positioned and you gain muscle memory to help you anticipate for the next time. haslinda: do expect some friends to be long-lasting? what are you seeing, now that the pandemic is behind us? erika: we see students are very eager. our faculty are eager, to find ways to advance society. that includes the role that business plays in that advancement. it's not business alone. the other thing is much more collaboration between business schools and engineering schools. business schools and health care. all of these different disciplines are linked. we have to break down -- we have to break it down to solve complex problems. haslinda: how will your courses

evolve to take that into consideration? erika: we are seeing so many changes in the world. change is happening rapidly. the biggest challenge is to keep pace with the change, and make sure we are able to conduct the research that provides credibility and validity to the changes we are seeing, and how we are building the curriculum to prepare students. haslinda: what is the biggest concern, the next few years, and how you want to position the wharton schoo? erika: i want to position it to be the thought leader. it is business and health care, technology, entrepreneurship. the more we are able to position and build collaborative partnerships in those ways, i think we will continue to be a leader in business education. haslinda: great to have you with us. erika james dean of the wharton

school. it's noisy. i can hardly hear myself. david: yeah. kind of like when i talk to myself in silence, and solitude of my own home. i can barely hear myself. it's a bit deep. let's talk about markets. it's been bc -- busy. the parties headlines coming through. as you can see, everything from msci china reversing his gains for 2023. there is the banking story with silicon valley bank. and the very latest this morning is the bank of japan. unanimous decision, 9-0, no change. last meeting of governor kuroda. we were speaking with johnna for -- jonathan garner of morgan stanley and his take on the banking sector, given this rise of 25% on the topix bank index. that is richly valued, he says.

shift out of that is his recommendation. you understand why that is taken up. there is lack of action out of the boj. the earnings outlook for the japanese banking sector has been up substantially. what's important to note is that the earnings out is tied to what the boj does. orange circle is when kuroda came to office, to power. green is when the introduced negative interest rates, when the pandemic hit. this is when they tweaked the ycc ceiling, the big bump up, you see. we'll continue the conversation on the boj. he'll talk us through his take as far as the equity markets go. markets are here. the rest of the region sold off and badly on the back of the

jobs report, the steepening in the yield curve which i will tell you about. we're looking at how the banking sector might affect how the fed approaches how hawkish it can be, given it's an additional problem. commodity markets are doing this, yields are pushing down. this other big story is. also in beijing. . we'll leave you live pictures of beijing. there we go. the national people's amid this equity market. stay tuned for more. markets opening up in the next hour. thailand and india. keep it here. this is bloomberg. ♪ lan, a new tool in the chase mobile® app. use it to set and track your goals, big and small... and see how changes you make today...

could help put them within reach. from your first big move to retiring poolside and the other goals along the way wealth plan can help get you there. j.p. morgan wealth management.

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david: good friday morning and we are live out of hong kong, singapore, and new york. as you can see, china's president xi jinping, unanimous win, third term as china president. as you can see there on your screens, we are looking at xi jinping also renamed the chairman of the china central military commission. the big news coming through quite literally the last few seconds, xi jinping has been renamed, elected the president for a third term. there we go as we go through the ceremonies, the pomp at the national people's congress.

and we are looking at lots going through outside of what is going on in beijing. there is a boj story that we will get to, the banking story that is front and center. this big drop in yields across treasury yields, yields across the region, right now might have to do with the former banking story and it is the jobs report we will get to in a few moments. just to recap, china's president xi jinping has been appointed to a third term as president of the country. markets are doing that and we are risk off as we approach one by one all of these items on the agenda, which next up is the bank of japan press conference, and we move into the jobs report. before that, let's get with kathleen hays to talk about this. let's talk about the boj. >> no change in anything.

now we know that kuroda made the final surprise of his 10 year reign over the bank of japan in december when he surprised everyone with the tweak in yield curve control. he went up to .5, and that is one of the reasons people thought he skipped january, so maybe at this last one he will make the point that he is acknowledging in some ways it is dysfunctional, the bond my get in japan is dysfunctional -- market the japan is dysfunctional, but now what we are seeing as he paved the way by not doing anything. he paved the way by sticking to his guns, extraordinary monetary stimulus still needed, too much uncertainty about inflation. remember it was only yesterday that we had the final number on the fourth quarter gdp revised to nothing. it was not very strong before that.

all in all, we will wait for the press conference. in a few hours, he will be taking is, and i would be interested in asking, so what do you see happening next? should the policy core be rewritten? will there be some normalization that could some -- could come sometime this year? what about wages? those are the kinds of things we need to know, but all we know now is he decided that was the thing to do. leave gracefully, leave with your statement, and let the other one takeover. haslinda: the yen rebalancing earlier gains. the question as well as what waiter will do -- what ueda will

do. kathleen: it remains to be seen what the deputies are going to be very important to ueda because he has been in academia for a number of years now, very integrated into things like conferences. he knows people at the bank of japan. so where does he go next? the question is, does inflation look like it is sticking higher? but also the point we just heard made is that the governor is the strong ldp faction closest to abenomics does not want to see extraordinary stimulus lifted. as long as they have a budget deficit, they were worried about financing and that is the position that will be an

important factor in determining how quickly and easily ueda is able to get to normalization. he thinks we could see comes -- some kind of signal at the next meeting, but changes will not come until the second half of the year. david: kathleen hays stays with us to talk more about the meeting and the yen has strengthened, so we are seeing a reversal in the position, the yen down against every one of its peers. let's get more with nicholas smith joining us now. mr. smith, thank you so much. no change out of the boj. there is a press briefing taking place three hours from now. what do you think we should be watching out for most closely? >> obviously kuroda is 10 and done.

he spent 4.5 trillion dollars trying to get inflation back into the economy. the results of that are fairly small, so he will finally have his chance to explain himself, and he is out the door. what we are interested in is what the next guy thinks about all of this. he was voted into the job yesterday, and i think his thinking is different, so if we look at what is going on, the boj has been trying to defend its yield curve control very heavily, so since the beginning of december, 51.91 trillion yen, so that is $422 billion, smack on 10% of gdp just at the start of december. you look back at what the new governor ueda set about this in

november of 2016. he was saying when the boj had one third of the bond market that this was unsustainable. now the boj owns 56% of the bond market and it is hitting yen on what it can do. the bank looks at pension funds, the likes of which have sold all they can afford to sell, and now we have a dysfunctional bond market that trades by appointment. i would expect them to have with the arrival of ueda, the question will be if he gets rid of yield curve control at the first meeting, or within his second meeting. but i reckon we are done. david: just to clarify when you say we are done by june, does that mean we will no longer have any ceiling and it is much higher than current levels on japanese bonds and japanese bond yields? nicholas: the comments made by ueda essentially say that we saw

on the 20th of december that tinkering with yield curve control makes things worse and attracts attention from traders. the only thing to do is you have either got it or you have not got it. my belief is we will be done with the yield curve control by the end of june, and the question is where we will come out of negative interest rates at the short end. and we listen to economists, but frankly, they have put their bundle with the shovel. what will be of interest is what the traders say ends the futures on those are suggesting we will be out of negative interest rates the end of the year. you will agree when it was brought in january of 2016, the boj covered itself in glory. kathleen: a statement to say

yield curve control will be gone by june. we have particularly heard set ueda had no indication towards looking at anything like that and no matter how much it might make sense, it seems like it is a statement that has not been held up by anything he has said yet. what you are saying is that it will be so hard that he has to get rid of it and he has to get rid of it right now, even though the ldp party seems to be opposed to anything like that. nicholas: people when they were trying to work out what ueda thought, they went back to his nikkei interview back at the end of last year, and he says to not be too hasty. if you go back to what he was saying earlier, it was unsustainable, and it clearly is.

the testimony in parliament, he was channeling greenspan, being careful to being a riddle wrapped in and an egg my. once he is through that, he is protected by the bank of japan law and able to get on with what he thinks is best for the country, which is tightening up this mess. kathleen: at the april meeting coming up not too far away, do you expect in the policy statement that they will change the outlook? the outlook that the last meeting for inflation to come back to 1.9 this year and 1.6 next year. will he send signals in the policy statement and what he says at the press conference that will make people get on board with you and say, i think this guy is getting ready to move? nicholas: i had a little sound drop out, but essentially what is going on is the boj has been

putting out low forecast on inflation and being forced to revise those up when its forecast comes into contact with reality. what is going on at the moment is wages look like they will come at the top end of expectations, and that should not be a surprise. the japanese population is shrinking at the moment by half a million by the year, and by half of the decade, it will drop even more. companies are realizing the need to handle their people because the situation of extreme labor shortages are going to get worse. that is what we need. my experience of years in japan as inflation is always a wage phenomenon. finally we have wage inflation just because you can print money but you cannot print people. david: as a follow-up to that, does that result in margin

pressure as far as some of the sectors are concerned, and if so, where do i look and what do i avoid if that is the case? nicholas: when it comes to stocks, the first cut is just a look at regression and say what moves with long-range and what is rate sensitive. the answer to that is banks. a lot of people are saying that i talk to the banks and it will not help very much. my temptation is always to say yes, but what moves the share price? you take some of the megabanks highly correlated with it, highly sensitive, and basically one basis point on bond rates and 1% on the fair growth. is there upside, yes? david: as a final question to that, banks are up 25%.

you are saying they are still cheap even the policy, the possible policy outcomes going forward. just to clarify that statement. nicholas: japanese banks are trading at typically half of both values. what is important is their ability to generate returns, but they are paying a decent dividend. but yes, they move with long rates and long rates are coming off of flows. global rates have come off of multi-millennium lows. it just cannot continue like this. david: nicholas smith, thank you very much. standing right outside the bank of japan building where governor kuroda has delivered the final statement with him being as head. and kathleen hays out of new

york. the press briefing taking place in a couple of hours. let's table that for now. there is a tweet out of bill ackman, so we are still talking about svb and the failure of the company. this reads here, the failure of svb financial could destroy the long-term driver of the economy as companies rely on svb for loans. if private capital cannot provide a solution, a highly dilutive government preferably allowed should be considered. to paraphrase, this is a key pillar in his words of what has been a big driver of the economy. if round one fails, maybe we should look to the government for some sort of rescue. and i am paraphrasing generously

as to my translation for what that means, but you can check out the tweet on twitter. let's get over to vonnie quinn in new york with the first word news. vonnie: sources tell bloomberg that founders fund has advised companies to pull money from svb. it is the founder fund cofounded by peter thiel. rick becker asked investors to stay calm over concerns over his financial position. svb announced a two point five quarter billion share sale. the u.s. is working to put an end to a loophole which allows american firms to keep supplying to china's inspur. this means suppliers such as nvidia and visco could still deal with the government without permission.

the u.s. is stepping up its chips collaboration with india as the south asian nation seeks a bigger role in the supply chain. commerce secretary gina raimondo has traveled to india to sign a deal. they will also discuss ways to avoid over sensitization. global news powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn and this is bloomberg. david: i will take it from here. just ahead, india's highest courts will be hearing a same-sex marriage lawsuit. we will take a look at what to expect and what it means for global lgbtq rights movement. certainly broad implications as far as that is concerned. also taking you through from india, we will take you back to beijing, live pictures of the national people's congress plenary session where president xi jinping has now been appointed to a third term as president.

unanimous win for president xi jinping. this is bloomberg. ♪

david: welcome back to the show. we are looking at yields and if all of a sudden you are wondering why the two year yield is below the 4.8% tangle, we can thank the story in banking. this reversal of the rich repricing around the hawkish fed and markets taking some of that off the table right now because this might give us food for thought on how hawkish the fed can lean and how high rates can go on the back of some stresses that are related to higher rates in the banking sector.

the two year yield is down 30 basis points now up over two days. if you look at the markets right now, a couple of things you might have missed this morning, we are looking at msci china that has reversed every single gain for the year. we are looking at what is taking place in beijing with the npc and president xi jinping winning a third term as president. also key positions getting filled. there are also tweets out of bill ackman talking about the labor story as it pertains to silicon valley bank and how important that is in terms of efforts to ring fence the problem, and perhaps if we do not find a solution in round one to figure out where the government can come in. annabelle droulers is here to talk us through the story. annabelle: it really points to

the importance of this company. that's not downplay this, still around the 20th largest bank in the u.s. and a key source of lending for the vc sector. it has been favored over the last couple of years, so bill ackman is saying if you let this bank fail, you could be cutting off a key source for the sector. so as he said, perhaps a government bailout could be the preferred option. the company says it is solvent, but some investors are saying to take that at face value. the risk comes when you have a run on it. we have seen a number of funds this morning, others are coming from sources off of record reporting, but saying to their portfolio companies to take the cash out. there is a risk you might lose out on your deposits. david: i do not think there has been a time where a banking ceo has signaled this on the other side. of course saying to calm down and look at this, but there are

problems, trying to raise a lot of cash. why are we here in the first place? why do we have this problem? annabelle: it is the intersection where you get the banking bond crash colliding with what has happened in the tech crash because when you take a look at the history of svb, this was a bank that was a favorite of the vc world, talking a lot of cash and raising a lot of capital, and when it was using those, it was putting them into short-term interest-bearing securities treasuries, but at the same time, the fed starts to raise rates and that causes concerns about investment into the vc sector. that starts to dry up, but the deposits within svb are still there and they are still having to withdraw cash because the company cost are still rising on the back of inflation. you are getting a run on the assets of the bank, so that is why they have had to resort to that asset sale to plug the gap, and looking at things like the

share price. haslinda: we continue to see the headlines from ackman, he suggesting that the government should consider a bailout when there is no option but to come to fund capital. of course, we are seeing the fallout among the asian banks as well. asian banks leading the downward trend. annabelle: you are pointing to the risk that we will see some sort of systemic flow on from this event. that is what is playing out in the financial sector today because we are seeing asian bank stocks leading losses in terms of the worst performing sectors, but when you look at systemic risks, some investors are saying that is not so likely here because svb was a specialized bank in the fact it did operate in the vc sector, but other banks are more erisa fight not only in terms of customer bases but also portfolios.

they can withstand this environment. others are more cautious. quill investments was saying this points to a bigger issue facing the industry, and that is when you have investors or retail traders looking to withdraw their money from their banks and put them into more money market funds where they can attract a better return. that is where the concern comes from because you have money coming out, none of the large-cap banks, but it is the small to medium-sized ones feeling the pinch. david: thank you on the latest and to summarize the tweets, bill ackman said the government should mull a bailout if no private capital solution is available. how this has dovetailed into the macro picture, there is the tweet for you. the yield curve interestingly enough steepened overnight and it is two year yields that are coming down. that is not the curve.

anyway, mark cranfield is with us right now, joining us out of singapore. the reason we are talking about the curve is jonathan gardner who oversees em for morgan stanley had an observation where if you look at the banking story overnight, what was interesting to him as the steepening of the curve and maybe some food for thought for the fed to not go as hard on inflation because there is a stress to the banking sector that might be starting to show up. your thoughts on this? mark: as far as the stress on the banking sector is concerned, the fed has a supervisory department it will be watching that closely. in terms of what that means for immediate policy, they will steer very clear of associating anything to do with rate changes at the next meeting with what is happening at the central -- silicon valley bank. that would incite panic, and the last thing they want to do is start panicking people in any

part of the financial system in the u.s. of course there will be looking at it closely and looking at the background to it, seeing if there is any systemic risk. as a central bank, there are certainly not going to be doing anything which will add fuel to the fire. they will be trying to play it cool and look at the data to see whether it will impact the jobs sector, whether it will impact inflation in the medium-term, or anything else. they will not be jumping to any conclusions, and they will not want to create more market volatility. there is plenty of that as is, so it is not their job to make it worse. it is their job to cool everybody down. as far as the fed is concerned, whatever they say will be carefully calibrated to keep everybody calm. haslinda: as you said, whether or not there is systemic risk. what is the sense out there? is it limited to smaller region banks?

mark: part of the problem is that nowadays the attention span of people in financial markets is extremely short and has been made worse because you have so much out are trading as well, but people know they can unravel these things quickly. so traders tend to shoot first and ask questions later. it has nothing to do with this particular story, but you can see how quickly the adani story crushed the equities based in india are particularly related to the adani companies. if you blinked, you already lost 50% of your money. what people do not want to hold back and if they are worried, they will sell first. david: these days, our households depend on the internet more and more. families grow, houses get smarter, and our demands on the internet increase. that's why we just boosted speeds for over 20 million xfinity customers, on us. so you get more of the speed you need

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david: just moving into half

past 11:00 in the morning in shanghai, moving into the lunch break right now. the csi 300 down about 1%. slightly weaker on the chinese currency. we will talk policies a little bit with steve. we look at the rest of the markets right now, risk off with the u.s. jobs report. the dollar catching the bid on the back of the bank of japan coming out with the unanimous decision to not do anything to stick with easing as far as that policy is concerned. futures are coming off a bit as far as the nikkei is concerned. 1.2 percent, just coming out of the lunch break in five seconds, and yet again, governor haruhiko kuroda and the team proving that he is the michael jordan of aggressive monetary policy.

sticking to their gods as far as that is concerned. -- guts as far as that is concerned. we have a press briefing taking place in 2.5 hours. hang seng entering the last 30 minutes of the morning session, should be near, if not at, section lows. for the markets, we will take you straight back to beijing where the national people's congress plenary session and unanimous win for a third term for xi jinping. as the npc winds down at the capital. let's bring in stephen engle. stephen: using the analogy. this was a foregone conclusion. it was a unanimous vote of the national people's congress within the last hour. 2952-0.

the other names we knew would be named to their respective positions were also confirmed the national people's congress. we have the new head of the national people's congress, replacing the outgoing head. he is also the third ranking standing committee member, not a lot of difference here. the vice president also is the person who steps down from the standing committee and will take over from the person retiring. xi jinping has reshuffled the leadership around him. he was never in jeopardy of losing this opportunity because he changed the constitution five years ago to abolish term limits for the top man. there are the three men in question today, all getting confirmation of their new positions. tomorrow will likely be the new person replacing li keqiang the

national people's congress wrapping up. david: li keqiang started, he opened the national people's congress and ending with the incoming or new premier. stephen: xi jinping's handpick for the number two position on the standing committee will be the premier, in charge of the state council, which is china's cabinet on the stateside side of the equation, and if you look at the compound, the south end is the presidential offices and the northern end of it is where the state council is, and in years past, the premier has had a nearly equal footing as the president. i would not say equal, but a clear number two. under xi jinping, li keqiang's role as premier diminished, and you saw far more references in state media to xi jinping rather than li keqiang.

it will be interesting to see what kind of role the new incoming vice premier will have as the head of state council and the head of the economic planning. he will not be the economic czar , but those are the two right-hand men. he lifeng, who will become first vice permit and economic czar, and then li qiang. a lot of different names, lots of different outlooks, but essentially xi jinping is consolidating and has consolidated his power around his policy and party discipline. david: i unanimous third term for the chinese president. stephen engle there. let's get over now to new york. vonnie quinn is there with the first word news. . vonnie: the goldman sacs banker

has been sentenced to prison. he was accused of launderingoldn $2.9 billion to u.s. authorities and more than $5 billion globally for its role in the scam. the fed is assembling a new crypto focused team to ensure it is on top of developments in the asset class. the vice chair for supervision says the group will help bolster the oversight abilities as the central bank works on additional crypto guidance. u.s. officials have taken a more aggressive stance on crypto regulation. norfolk southern is accused of lacking transparency after the spill in ohio. their ceo's faced a tough grilling after one of its trains derailed in alabama. shaw faced a heated amount of questions to the railroad's

policy on sick leave and staffing. >> i want to begin by expressing how deeply sorry i am for the impact this derailment has had on the residence of east palestine and the surrounding communities. i am determined to make this right. vonnie: a new york judge has ordered jp morgan to turn over more records from ceo jamie dimon to the u.s. virgin islands. the order is related to a lawsuit accusing the bank's private banking had of protecting jeffrey epstein. it has sued former executive jes staley. his relationship with epstein is the focus of the lawsuit. global news powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn and this is bloomberg. david. haslinda: still to come, india alternatives investment advisors ceo shivani bhasin sachdeva

gives us a look at private equity investments in the country. this is bloomberg. ♪ get help reaching your goals with j.p. morgan wealth plan, a new tool in the chase mobile® app. use it to set and track your goals, big and small... and see how changes you make today... could help put them within reach. from your first big move to retiring poolside and the other goals along the way wealth plan can help get you there. j.p. morgan wealth management. thanks to avalara, we can calculate

sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? hhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh david: welcome back.

we are approaching the opening bell in india, direction for one specific sector in india and we are zeroed in on this pocket of the equity market in the region today. banks and financials leading the losses when you look across sectors right now, a brief look at what could be in store in the session today. certainly this is a group of peers that has come under tremendous pressure. i suspect we are not done talking about this story yet. let's stay in india. the supreme court, so next week begins its hearing on whether or not to legalize same-sex marriage. the outcome is such to have implications for the world's most populous nation and the global movement for lgbtq rights. for more, let's bring in our south asia government editor joining us more -- joining us to

talk more on this. talk to us about the supreme court and how the country's supreme court could create marriage equality and how likely that will be. >> starting monday, the supreme court will start hearing petitions from algae bt cube couples -- lgbtq couples seeking equality. this has been extremely positive for algae bt cube rights, -- lgbtq rights. what it means for the country is not only -- if the verdict is a favorable one, not only will it create marriage equality for all indians, but it will double the people world wide with access to marriage equality, and it is huge. so it will hopefully set an effect on a positive view to

same-sex marriage around the world. david: it does and will be a significant step in terms of building on that momentum. expound on what that means not just for india but globally. >> very few places outside of the west and in asia, there is only taiwan that offers same-sex marriage equality. so a lot of countries where these debates are right now happening, japan, island, south korea, all of them will be watching for what india does because any type of country as significant as india given the sheer amount of numbers makes a positive step in this direction. it creates the counter arguments as the activists tell us, so that is what the world will be watching as india starts out making these deliberations to create marriage equality for its citizens. david: how soon might we get a

decision from the court? >> the indian legal system is not known for speed. however, once things reach the supreme court, it happens very fast. activists and lawyers are hoping for a decision as quickly as six months. this also means we have a chief justice in place who is positive on lgbtq rights. this court has made a lot of pronouncements, creating more legal rights for what the court has called an atypical family, which includes lgbtq families, so there is hope for this term, the chief justice whose term ends exterior, makes a decision soon. -- ends next year, makes a decision soon. david: muneeza naqvi, our southeast asia government

editor. let's move from marriage equality to private equity. haslinda: private equity assets declined last year along with the information telling that india saw a drop in investments while china and southeast asia experienced steeper declines. we talk all of that with shivani bhasin sachdeva, founder and ceo of india alternatives investment platform. thank you for being here with us. we have seen how activities have declined. how is that shaping how you are thinking about the sector? shivani: we need to look at private equity in india over the past decade. if we look at 2010 or 2011, which is when i started my platform, dealmaking was roughly $8.5 billion a year. that number peaked to $65 billion in 2021.

part of that was because the liquidity everywhere in the world, and then there was a drop off. that's put that in the context of $8.5 billion and $65 billion, down to 42 billion dollars. structurally, the market is very sound and we are excited about making investments right now. there are tons of opportunities. if you look at the backdrop over the last few years, one of the most exciting things that has happened is a lot of young indians are digitally savvy, they are on the internet, broadband connections are through the roof, internet connections are through the roof, and you have hungry young 28-year-olds, which is the average age in india, on the internet ready to consume, digitally savvy, so all of this has capitalized the startup ecosystem and the young company ecosystem. haslinda: you are still excited

about it. how big are these deals? shivani: the deal size has increased over the last few years. some of them, the 100 million dollar plus deals, some of those have tapered off, but he will see more excitement in various sectors. we are very excited about some investment themes. we think the penetration is low across sectors and we look at investing from an investment theme perspective rather than sectors. haslinda: valuations are looking more reasonable now? shivani: valuations are looking more reasonable, however two things are happening. you have some companies that have either turned cash flow positive or have enough runway on cash that have decided to wait and watch. you have another dynamic where earlier fund lines are coming to an end and people who want liquidity, there you see opportunistically rate deals on valuation.

there are a couple of factors at play. haslinda: you talked about exit and that is the concern because fewer companies are ipo leaning. shivani: that is a terrific question and if you asked me this question 10 years ago, the response would have been a little bit not vocal, whereas today, i can confidently tell you that even prior to covid and prior to this liquidity surge in 2021, the exit traction was happening from india. let's take a look at the 10 years prior to covid. according to ernst & young, the total amount of exits from private equity in vc backed companies in india was roughly $58 billion. of that, more than 60% happened in the few years leading up to covid, so varied destruction on the ground from the exit front.

the biggest milestones included securities exchange board allowing new age companies that were yet to turn profitable, allowing them to list on the exchanges. you are right. the ipo market may be slightly tepid for the short-term, but strategic sales are still happening on the ground. m&a activity and consolidation is still happening. big picture exits are coming out of india. haslinda: metrics have changed and investors are now looking at profitability closer. shivani: absolutely, and i am delighted with that. we are a midmarket investor, so we love when the entire ecosystem is speaking the same language, which it is now. you have venture guys and gals at an early stage, everyone talking about key metrics, acquisition costs, worried about cash bond, runway, all of the things we live and breathe by. haslinda: how are you looking at

diversity and advancing portfolio companies, and what are the conversations happening right now? shivani: we are passionate about this and putting that passion into constructive use this year. we find that while the numbers of women that are investing in operational roles have increased the last fears, decision-makers at the top are largely men. those numbers are abysmal. we are doing a lot to create awareness. we are awaiting -- we are educating women in our companies and equipping them with the skills and confidence to go to leadership roles. overall making a big noise about it. haslinda: making a big noise about it is great but also accelerating the process. what will be the turning point and where are we right now? shivani: the turning point will be where we all insist as a private equity and venture community that we need women leaders of the top. we have to open the final, be

nontraditional in the way we think, but we have to insist on women decision-makers at the top. it is not enough to say our numbers are all right because we have women in supporting roles and on the operational side. that is great, but we need women partners. haslinda: one more question for international funds. they have made an exit have you been concerned and where do you see them turning? shivani: the international funds? two things. i am not concerned because a lot of international funds are looking at india. penetration rates are very low in industries across the board. structurally, the country is very sound. there have been changes that have happened the last few years which are lending themselves favorably to the ecosystem now. the other thing happening is the domestic market is also taking off. all, it is a good time to be investing in india private equity. haslinda: thank you for your time. shivani bhasin sachdeva at the

wharton global forum. oughts of perspectives, all the greatest and brightest minds. looking over the big issues in the world today. david: there we go at the wharton global forum. let's check indian markets right now a couple of minutes into the open. we are looking at the banking sector closely. quite a sizable move to the downside. volumes are not there. we are 20% lighter than usual, so we will see whether we get the fall as far as trading is concerned. the banks down around 1%, fairly consistent with this sort of broad text of risk aversion we are seeing in the banking space. i will use this as a jumping off point to say we will look at that on the other side of this break. stay with us.

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david: welcome back. xi jinping has won a third term as china's president in a largely procedural vote at the national people's congress, overwhelmingly approving the extension of xi's rule.

things are wrapping up in beijing and the power dynamics have been in full display where you have the outgoing leaders, the newcomers crammed around the chinese president. stephen engle actually took a look at how china's leadership plays their game of chairs. stephen: like in any important dinner party, where one sits at the table can be telling. at the national people's congress, there is no denying xi jinping is the host, the center of attention, with concentric rings of importance emanating outward. this year, the roster is fairly packed like a holiday dinner were all the relatives show up. the seniors on their way out mixed in with the family's rising stars. tycho is flanked closely by his closest new allies, including li qiang, expected to take over as

premier, a new right-hand man. even the outgoing vice president got a seat within earshot of xi, showing he may still be a man of influence despite his outgoing retirement. outgoing sun chunlan is also on the roster, but her seat further down the line might suggest that her days are numbered. xi's party allies are in all men's club for the first time in decades. party politics in full display. david: cheers. markets have been doing this heading into the lunch break and hong kong, so a couple of things to play. the final notes in what has been a turbulent five or six weeks at msci china, started the year out good, and then went downhill

from here. the latest has a raced gains from the year. the pocket of pain today is the banking sector and that is across more than the asia-pacific and most pronounced in japan, given that group of stocks has climbed substantially in recent weeks. it comes down to the boj, which came out with their decision and the final one of governor kuroda 90 minutes back, the unanimous decision. the yen is weaker against the board. before we get to the jobs report, we do have governor kuroda's final press briefing as governor, and that clears the way for markets to focus solely on what is happening in the u.s. for the metro -- macro picture. a glance at the estimates and what we look ahead to, certainly the banking story and what has happened with the look on valley bank and what that means.

bill ackman saying that if you do not find a private-sector solution, the government should consider something. risk off across the region led by australia. the dollar is largely bid as we make our way into the u.s. jobs. report the two year yield is down about 30 basis points. the two's and tends to give back all the way. there is plenty more still on deck as far as markets go. we are heading into the break in hong kong and there is plenty more head on bloomberg television. "daybreak: middle east" is coming up next. this is bloomberg. ♪ j.p. morgan wealth plan, a new tool in the chase mobile® app. use it to set and track your goals, big and small... and see how changes you make today... could help put them within reach.

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