tv Bloomberg Daybreak Australia Bloomberg May 24, 2022 6:00pm-7:00pm EDT
>> good morning. we are coming down to asia's major market. shery: the top stories this hour. a rebound offsets sliding tech. haidi: awaiting new zealand central-bank decision. an aggressive tightening. shery: in china, shut down certain growth. the s&p 500 did finish down and we had a little bit of a rebound when it came to stocks among
utilities and consumer staples. take a look at the benchmark, a drop of more than 2%. we had a profit warning from snap that erased the market cap. by media companies by $100 billion just in this session. we continue to watch the latest on u.s. data because homebuilders were some of the laggers. new u.s. home sales dropping to the lowest since the pandemic. we are see wti prices lower, around $110 a barrel as we continue to see risk of sentiment throughout the session. that sentiment leads to treasuries take a look at that rally that we saw, crowding so safe havens, continue to see the 10-year yield dropping towards the 270 level. as we heard from the fed's raphael bostic cautioning his
colleagues to move with caution when it comes to hiking rates. as of course we have seen in the past month, inflation really translates into concerns about growth. not surprising we have seen the likes of goldman sachs and bank of america talking about, perhaps seeing more perhaps seeing more. stock losses. seeing that it is the start of the show, i want to point to more positive news. we have seen a huge jump doubling and the s&p 500 losing almost 20% from its peak. we have been talking about potential bear market. the fluctuation seems to have peaked in march. that could point to a rebound in stocks. haidi: thank -- so much of this depends on how much further -- we can get from the central banks, particularly the fed.
they are likely to kick rates higher by another 25 basis points. but this is the bloomberg economics -- 25 basis points has a lot of economists, saying 50 basis points, another 50 basis points is an upside risk as well. we have seen 125 basis points of tightening since october 2021 but it has been more of -- of th e households where we have seen fixed-rate mortgages surging. a a lot of pressure coming down on the property markets. shery: same story in the u.s. where we see mortgage prices accelerating let's discuss everything that has to do with mortgage -- with more on this, isabel, we are seeing the market reaction from all of this uncertainty. where are we headed for the rest of the week? >> the nestor was underperforming -- earlier it was down more than 2%.
and was really tracked by snap and other companies that rely on digital advertising also suf fered. this week we who have a lot of data coming up. on wednesday we have the fomc meeting. the fed will hike 50 bits in june and july and investors will closely watch what chairman powell will say -- to rein in inflation. on thursday we have u.s. gdp data. and on friday we have the core pce producer, price index, rather. earlier today i chatted with a couple of strategists. two things, when are we going to see the bottom and one is the selloff going to end? traders are really exhausted, everybody seems to be having a different answer of where the bottom is, or what will be the next catalyst to the upside or the downside.
it's really something we are closely watching. every day it seems to change. haidi: it suddenly does not seem like a tech sell off has slowed. what with the drivers and do we see the downside. >> we might. because meta tech stocks had a bad day today. the company to blame might be snap. it fell more than 40% today, the biggest one-day drop on record. that is because the company credits revenue 180 turned from last month. snap blinked. the macro economic -- blamed the macro economic conditions for its sudden slowdown. we had google, a company, we alphabet slowing and facebook, meta, plunging.
facebook has fallen 50% from last year. and, overall, the nasdaq has fallen over 30% from its peak last year. as the fed pushes for an aggressive campaign to hike interest rates. as we know, everyone says tech -- but each company just has so much weight in the index. haidi: isabelle lee. new zealand central-bank is expected to deliver another 50 basis point hike as inflation climbs to a 30 year year and employment falls to an all-time low. kathleen hays is here. what is the rba looking to achieve and does that inform whether we see 25 or 50 today? >> it looks like they want to get to the neutral rate as quickly as they can. remember, when you get to neutral the rate is tight enough
to bring down inflation but not so high that you pull the economy into recession. you just mentioned on the planet, down to a record low. so, what 19 of 22 economists surveyed by bloomberg economics and the news team see is a 50 basis point hike. it will take the rate to 2%. i want to call your attention to that big move down in early 2020. the rbnz has led the world and aggressive moves, 75 basis point cut march 2020 when the pandemic was just taking hold. they did the 50, excuse me, three 25 basis point hikes starting in october, 50 basis point hike, who would do that? they did that in april. they want to get back to the 2% neutral rate. some are expecting that to -- them to move that as high as 3%,
because inflation has gotten so high. 6.9% year-over-year. in the february meeting they thought the official cash rate would get to 3% by the end of next year. now economist are speculating it will be there by the end of this year. we are waiting for confirmation in their policy reports in the press conference tomorrow afternoon mean -- after the meeting. so, interesting, the official cash trade has not been above neutral since 2015. this is a big and an important move and of every central-bank that is fighting inflation that is trying so hard to. shery: with the exception of the pboc. they seem to be going the complete opposite direction but -- they really want to boost the economy. >> every day, another meeting from the state council. the latest in the last 24 hours, the people's bank of china, other bank regulators talking to the 24 biggest chinese banks,
urging them to speed up lending. keep the property loan growth staable. they are concerned about this. they are saying that big banks need to shoulder their responsibility. in other words, you have got to get some loans out there. there telling banks to focus on small businesses, green projects, energy, infrastructure, tech innovation type lending. of course, remember, we just saw the social lending report loan growth fell in april to its lowest in five years. they have also taken -- they've been so busy, remember, a couple weeks ago they cut the lower bound of the mortgage lending rate then. this -- this week they had the five year loan rate -- cutting it to 4.45%. it was not widely expected is certainly not outside. this is something that is
expected to go directly to the property markets. there are a lot of things that can get people to buy or invest in the middle of lockdowns but we know there are a lot of chinese -- who would like to buy a home. and if you can make it easy or and cheaper for them to do it, that is what the people's bank of china is looking at now, because monetary easing has seemed to take a backseat to more fiscally oriented spending by the government. this is another way to get any -- done to have it see the monetary transmission through the system. it has to get to the banks and they have to get the loans. that is what they are trying to do now. haidi: hard to do anything when you are under lockdown now. still that major issue, that zero strategy. that's take a look at our asian markets shaping up this midweek session. we are take a look at a neutral start to trading. of course, we do have the futures in australia looking --
the aussie dollar seeing some gains, the kiwi holding firm ahead of the rbnz decision. interesting trading session when it comes to the yen, because we have seen the haven start to benefit from the dollar rebalancing. dollar-yen dropping almost 1%, to the lowest since mid april. we're seeing some moves when it comes to australian bonds and futures. that treasury, that yield curve -- the treasuries on tuesday, home sales numbers and also ceiling new zealand two year yields dropping ahead of the rbnz. vonnie: good morning. a teenage gunman has killed 14 students and one teacher at a texas elementary school. governor greg abbott says they killed the shooter, and 18-year-old arms with a handgun and possibly a rifle. two officers were also shot but not thoroughly hurt. the attack in a town west of san antonio is the deadliest u.s.
school shooting in four years. abbott says police are seeking information on the killers motives. china's top officials for pandemic control is raising pressure on the capitals contain the latest covid upright. with harsher restrictions. the vice premier urged 30's in beijing to -- urged authorities and beijing to stick to covid zero. it's a sign the government could be losing patience. christine lagarde says the central bank will not rush into withdrawing monetary stimulus due to inflation. as they report tensions may be tear lazing over about -- how they need to act. lagarde told bloomberg there is no need to panic. >> we are not in a panic mode. we've started that journey thinking about it very carefully back in december, with stops
along the way and we are now at a stage where there is every certainty that we will stop asset purchases very early in july. vonnie: the u.s. is seeking to raise pressure on russia by letting a key sanctions waiver expired starting wednesday americans will be barred from -- from russia's government. analysts say allowing it to expire raises the chance that russia will default. global news 24 hours a day on air and on bloomberg quicktake powered by 2700 journalists and analysts in 120 countries. i am vonnie quinn. this is bloomberg. shery: we are watching the latest alerts on north korea. we are hearing that south korea will convene an emergency meeting as reporting -- as they are reporting that north korea fired three ballistic vessels. military officials saying the
ballistic missiles fired were from pyongyang. this of course comes off the back of president biden's first trip to asia since taking office. also on the back of the meeting where president biden met the leaders of japan, india, and australia. we are heaing -- hearing more noise from paul yang saying that the second missile landed outside japan's e.e.z. south korea's military saying that north korea fired three ballistic missiles. haidi: we have seen leaders meeting in tokyo and wrapping up with that joint statement pledging cooperation on illegal fishing and security issues in the into pacific. china was not expressively mentioned by the shadow loomed large but you think the intention was there. >> for exam, the fishing plan,
the plan to set up joint monitoring ships in the indo pacific does not happen in isolation does it? chinese fishing vessels being detected well outside of chinese territory waters, including the south china sea. another part of the statement refers to opposing -- unilateral actions that change the status quo such as militarizing disputed features. and not too many countries are building military -- the shadow looming large. another country not mentioned is rush the war on ukraine extensively discussed. russia not singled out in a statement. why? they have a close relationship in india with moscow. so, the statement walking a fine diplomatic line. haidi: when it comes to china we are watching australia's relationship with beijing. shery: now with the new prime
minister, is there any chance of a reset? >> well, we will have to see, but early signs suggest not a lot of change there. anthony albanese said that relationship is expected to remain difficult. he called china's trade strikes against australia these tariffs on coal and wine unjustified and wants them to be removed and he is pledging more aid to the pacific in action on climate change as well to improve ties with pacific island nations. and china recently signed that security agreement with the -- solomon islands and that is of immense concern not just to the u.s. but to australia and china's foreign minister will visit the solomon islands and seven other pacific nations this week saying it is to enhance trust. those quizzes will be viewed rather differently in australia -- those visits will be viewed rather differently in a stroller. -- in australia. shery: paul allen. we will have more analysis on
australia, and the election and the relationship with china. geopolitics with former australian prime minister matthew turned role joining us to assess the situation around the country. first, -- o staying defensive until there is an indication of a fed hike. he's expert -- she's expecting a recession. we will speak to her next. this is bloomberg. ♪
shery: goldman sachs and bank of america saying that u.s. equities may more losses before the fed signals an end to monetary tightening. let's bring in our next guest who is remaining defensive. with this is frances stacy. good to have you with us. at a time when bank of america said the fed had offered no help to risk assets and appears far from stepping in. what do you do until the? >> i remain defensive and the thing is that the fed is tightening into a slowdown. we know that. there is a lot of data still to come this week, with revisions to the first quarter gdp and of course you get the pce and on wednesday the fed minutes but, no, the fed has not indicated yet it will come in.
however, we are projected to make a similar move with cumulatively tightening from balance sheet operations and also from rate hikes as we did last time, except last time it was over a few years. we're going to be doing at this time as projected in a year. that time the fed had to pivot and this time we are doing it so quickly into decelerating growth, i think they will have to pivot. shery: we saw utilities and consumer staples rally today. where do you go for those hedges, whether it is sectors or regions? >> both. we own utilities and consumer staples. i'm also, i'm really looking at this reversal in bonds. we have a nice position there. i'm also looking at the negative correlation in may 13th in the u.s. dollar and gold. silver and gold both reversed on the 13th of may. i'm looking to see if the dollar
starts going down and that negative correlation hold. haidi: when we do start to get actually meaningful balance sheet reduction, will that be the catalyst for the next leg lower or will markets price that in before we get there? >> i think it is the catalyst for the next leg lower. remember, everything the fed does, whether it is letting things roll off the balance sheet or raising rates has a lag effect. and because we are doing this over a compressed time, we can see liquidity in the system drop and it will take a minute for the system to recalibrate. so, i think the balance sheet projection will be more significant than the rise in rates and will be harder for marcus to anticipate and that, all being said, if they do not pivot before that, i expect the nasdaq to -- [indiscernible] haidi: what you think about energy because energy and commodities has been such a popular trade. does that continue? >> i don't think that continues.
i think we start to see some of that breakdown in the background. oil is such a big contributor to cpi. for oil to have the meaningful contributions at the rate that cpi was accelerating previously it would have to be $145 a barrel this quarter and $155 net xt quarter in order to participate in cpi. right now we have not seen it taken out that high. demand destruction will take hold and those prices will go down. i do think also supply chain situations may ameliorate. that will also affect pricing. haidi: frances stacy, director of strategy at optimal capital. and you can get the roundup of the stories you need to know in today's edition of "daybreak." this is bloomberg. ♪
shery: here is a quick check of the latest headlines. ama's ceo says japan's easing border control should lead to a rise in domestic and international travel and boost airlines revenues. the government is set to relax border controls this week le tting in small groups of visitors. they said in - - a weaker yen will help ana returned to profit for the first time in three years. >> foreign travelers used to comprise about 10% of all travelers in japan. with the covid situation, i do not think it is a huge jump in numbers of visitors, but i still expect 3% to 5% of foreign travelers to come back. shery: a hotel's shelving plans for an ipo after the
market downturn in its valuation. board members of the in dian start up i said to have talks through a change in the offerings. the possibility of an ipo has been pushed back to 2023. bank of america's boosting pay for tens of thousands of u.s. employees that less than $100,000 a year and adding reimbursements for a portion of electric vehicle purchases. base salaries will climb 7% for workers who have been with the firm since 2021 or earlier. up next, a former an australian prime minister malcolm turnbull assesses the election and the foreign economic policy priorities for the new government. this is bloomberg. ♪ as a business owner, your bottom line is always top of mind.
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>> on the world stage at the meeting australia's new prime minister albin albanese is due on wednesday. it's something the new pm cited as a major regional security issue at his first international engagement tokyo. for more let's bring in the former australian prime minister malcolm turnbull. always the pleasure to have you on bloomberg television. the new prime minister has pledged to 2050 net zero and 43% reductions by 2030. do you think they have a mandate to govern along with a -- independents, that they should be more ambitious? >> anthony albanese will want to stick to the promise he made at
the election. i think he will be more ambitious and i think he will stick to higher cuts in emissions and i think they are very achievable. but i don't think he will seek a mandate. certainly, this election has been a real political revolution, not just because there is a change in government from liberal to labour, but because of the rise of the -- the independents. they are now nine of the large-l liberal party, two safest seats that have moved in large part on climate to the cross bench. really talented, capable professional, independents, all women, all focused on climate and focused on integrity in government. it's a big sea change in australian politics. haidi: is it a seismic enough shift to be able to make a difference when it comes to phasing out fossil fuel exports
because that has been the biggest sticking point here. >> look, i think the first thing that will be phased out and is being phased out is coal fired electricity generation in australia. renewables are killing us and the critical thing is to put in place the storage of the hydro in particular to ensure that renewables are made reliable. that is why i got hydro 2.0 on the way a few years ago. but there will be a lot more projects like that. in terms of coal export, the incoming government is saying they are not going to stop exports as long as the market is there for coal to be bought. they are not going to stop australian exports of it. we all know that in china and elsewhere in the region the moves to de-carbonization plus greater local supplies, this is
particularly the case in china, are going to result in less demand for australian coal in the medium and long-term. short-term, the coal miners are doing well because of the russian invasion of ukraine. haidi: anthony albanese -- the quad meeting. the pact did not explicitly mention beijing or russia. do you have any hopes of a reset with beijing, given how far relations have deteriorated? >> look, i think there will be a reset. china has overreached in its bullying of australia. my own experience in dealing with chinese leaders over the years as they are very pragmatic, and when a particular course of action does not work, they will seek to change course. now, obviously, a new government, a new prime minister gives them an exit ramp, the
opportunity for an elegant dismount. but as anthony albanese and anyone has made clear, australia's substantive policy position is not going to change. we are committed as australians, and this is true of both sides of politics, to a free and open indo pacific and we are opposed to any form of coercion by big powers against smaller powers. i gave a speech years ago in singapore. i do not think i would be disagreed with. i think the policy is the same. what the big difference with the labour government will be, that they will not crank up the political rhetoric in the frenzied way that morrissey and -- and maybe that is for
domestic political purposes and that was really helpful for australia. -- really un helpful for australian it was absolutely the wrong thing to do. as you know, they were criticized for our intelligence and security -- i think you will get a calmer, more responsible professional approach to these issues but no change in process. shery: especially we see easing of ties between the u.s. and china. we heard from president biden he might be considering listing those tariffs. we talked to the ambassador last night. >> our approach as with everything in this relationship is to be strategic. we have to keep our eye on the ball to effectively realign the u.s. china trade and economic relationship. shery: if tariffs are lifted what would that mean for australia? >> i don't think, anything that
promotes free trade is good, ok? so, australia is a big trading country. we're always in favor of free trade. we have very low barriers to foreign trade. so, from our point of view, more trade is good. so, there's never been a free-trade agreement with australia -- that australia has not been keen to enter into. haidi: prime minister, when it comes to the future of your party, the liberal party, you see the decimation of the heartland. in wentworth, it was just an extraordinary wave there. with how the nationals are, where do you see the future of the party now? >> well, people will say the party has lost its -- generally they're not.
the liberal party does face a really big challenge because particular one an election is lost, a number of marginal seats, seats the governing party has held at a few percent get won by the opposition and of course they can be won back at the next election. we have seen some of that happening in this election. what we've also seen as allies was saying earlier, now nine of the liberal party safer seats, including wentworth, my old seat, which i used to hold with a thirds -- a two thirds majority, has gone to a active independent. these independents once they win are very hard to dislodge. historically, they are hard to win back. so, there is only 1q51 seats in the house of representatives. you need to get 76 to have a majority. the liberal party now has nine of what used to be its bedrocko
. the safest seats it has have gone to independents. they look at mr. morrison and said that your values on climate are so at all it's with what we believe that even though -- we 've voted liberal our whole lives we will now vote for this independent. scott morrison by ignoring the views and values of his most loyal of the party's most loyal supporters and taken for granted and they finally said if you're not going to listen to us, we will vote for somebody else. i think it will be very hard, you know, to recover from that. now, of course you got people saying that the liberal party should move further to the right. that's literally, that is madnes s.
that is how they got themselves in this problem in the first place. warned the part about this both when i was its leader on two occasions and since then. if they move further to the right, they will move into irrelevance. australians are not interested in all of that tabloid right-wing populism. that's favored and mr. murdoch's among other places. haidi: the incoming government does inherit a complicated economic situation and a global issue we are seeing with inflation and rising rates and household challenges. with the climate piece, what would you say is the biggest economic and investment opportunities for australia? >> i think the biggest, overall -- australia is a big country, it has an enormous opportunity. i think the biggest area of opportunity is in clean energy, whether it is green hydrogen,
whether it is in renewables generally. australia can be a clean energy superpower. sure, we've had a great run with coal. terrific. but we've got to stop burning coal. if we want to save the planet, we have to stop burning coal and gas. if those were the only strings to our energy bow, that would be pretty tough but in fact we have some of the best solar and wind resources in the world. we have a big country, we are on a mission to be a clean energy superpower. i think the recognition of that, and if you like, if mr. albanese can bring a non-ideological, pragmatic, clear-eyed approach to energy policy which we have not had from mr. morrison on afraid, then -- i'm afraid,
then i think the opportunities are enormous. last week, i was chairing a conference in barcelona. with fortescue future industries playing a leading part. there were so many investors. and companies, stake holders in the energy world who wanted to know about the opportunities to invest in green hearted and and clean energy -- in green hydrogen and clean energy and australia. that is the biggest opportunity for us. haidi: cry minister, always good to have you with us. former australian prime minister malcolm turnbull there, joining us from new york. a story is next parliament is set to be the most diverse with a record number of women, asian and indigenous lawmakers to hold office. let's get the details from our economics reporter. you take a look at the breakdown across all of these metrics and it is really extraordinary but also something we have been talking about as being necessary
for so long now. >> yeah. it's very transformative and it's a big change for australia's parliament on many fronts. like you said, it's a record number for women. we have seen a jump in the number of culturally and linguist to clean diverse candidates, law makers now. we have seen a big swing for candidates that campaigned on greater action for climate. and a record number of indigenous law makers as well. it's a very different parliament from the previous one, but a big positive change for australia. shery: what does this diversity mean in terms of the legislation we can get from congress? swati: i think, because we are seeing greater representation of candidates who are fighting for greater action on climate, we are likely to see, australia has
been a laggared in action on climate, so we are likely to see greater action now, probably a move towards hydrogen. that we have not had an energy apology for the longest time. probably -- a move in the right direction on climate. australia has suffered bushfires. and i think there is sentiment among the public as well to do something on climate. and i think this parliament can actually achieve something. shery: our economics reporter with the latest on the diversity in the australian parliament. next, our exclusive interview with christine lagarde as she discusses the withdrawal of stimulus and the chances of a recession in europe. this is bloomberg. ♪
antonio is the deadliest u.s. shooting in more than four years. governor abbott says that people are -- that police are taking information on the suspect. the suspect in the killing of a goldman sachs employee on the new york city subway has surrendered. andrew abdullah was wanted over the shooting of daniel enriquez. while police say it was an unprovoked attack. in response to the shooting new york city mayor eric allen has asked leaders to meet to talk about concerns. >> we got him in a way that he did not cause more injuries to new yorkers. the commissioner has stated something that is important. got a killer off our streets but far too many killers are back on those streets. >> north korea has reported to have fired up to three ballistic missiles wednesday morning. both south korea and japan concern the launches in separate
statements on the heels and president biden's trip to the region where he discussed the security risks posed by kim jong-un. pyongyang has been firing missiles at a record pace this year. indonesia central bank -- but rates requirements for lender's to 9%. the bank indonesia says the move -- will remove $7.5 billion from the bank. it kept its key rate -- even as malaysia and the philippines tightened military policy. global news 24 hours a day on air and on bloomberg quicktake powered by 2700 journalists and analysts in 120 countries. i'm vonnie quinn. this is bloomberg. haidi: ecb president christine lagarde says the central bank will not be rushed into withdrawing monetary stimulus what fights inflation. it reports tensions among ecb officials could be growing. she spoke to bloomberg exclusively at the world economic forum.
>> we have been going through eight years of negative interest rates, special accommodation and we are clearly now at a turning point. and i thought it was appropriate at this point to explain what the direction of travel is the traditional term and what is our end point. >> if you are hiking, you want to hike why wait for july? >> we are not in a panic mode. we've started that journey thinking about it very carefully, back in december with steps along the way. we're now at a stage where there is every certainty we will stop negative purchases very early in july, deciding in june, which will then clear the way for a rate hike that will come shortly after. >> is there a danger that because of the timetable which
goes to the credibility of the ecb -- which is we unwind that -- that you miss the curve on inflation? >> i don't think so. anybody who is very careful about analyzing realizes that we are in a situation which is vastly different from the united states. and we are actually perfectly on time and not behind the curve. i think there is also great value in being steady, predictable and we have said all along in our forward guidance that we would stop quantitative easing in terms of negative purchases because we will continue reinvesting as we go, and that then we'll look at the interest rates, which will be the main tool further on. >> how do you see inflation developing again, there are so many unknowns because of the war. >> you know, there are lots of forces and some of them, you know, counteracting against each
other. you have to war, which in and of itself is an absolute drama and has mess of economic impact not just in russia but for the rest of the world. we have energy prices that have gone up significantly and represents a big chunk of inflation. we have food prices. there was a whole series of prices that are weighing on growth down. and pushing inflation up. but, on the other side, you also have forces, i tend to be, i try to look at what is likely to counteract those very significant shocks. there is unemployment which is at rock bottom rate compared with whatever we had mentioned in the last 20 years. we have massive savings that are still untouched. and we have, look around, we have a summer season in europe which is a destination everything is chockablock in europe. try to book a flight, it is completely booked.
and people are catching up with what they have been missing. so services is recovering and that is going to be one of the counter forces that will act. >> how likely did -- is it the eurozone goes into recession? >> we do not have that as a baseline. we do scenarios and we have the negative, the adverse, various alternatives there on the basis of hypotheticals such as oil, interruption of gas supplies that clearly would have a significant impact on the economy. but for the moment we are not seeing a recession in the euro area. shery: ecb president christine lagarde speaking exclusively with francine lacqua in davos. in just 24 hours, we will speak to the rbnz governor. make sure to catch that conversation on thursday at 9:30 a.m. this is bloomberg. ♪
top picks. the australian benchmark has outperformed by 10% this year. we'll be watching the market opens in one hour's time. investors looking from shelter-- for shelter. they are buying into cash cows, etf assets. they have ballooned to $5.6 billion on inflows every week so far this year. the top holdings include multiple energy mains, haidi. haidi: let's get a quick check. of glencore has admitted to a decade of market manipulation. the u.s. regulators say the offenses took place from 2007 through to 2018. glencore agreed to plead guilty to charges including burglary, corruption and price me feel asian. -- the first quarter
revenues -- barely beat. the growth slumped to the slowest pace since the company went public in february last year. its worst earnings as regulatory issues. elon musk personal wealth has fallen below the $200 billion. it dropped to $192 billion as tesla shares fells. since he announced his intentions to buy twitter and the billionaires wealth is the lowest he has seen since august. shery: coming up in the next hour, more from our extrusive interview with a ecb's christine lagarde. we will also get reaction from standard chartered which tells us how it is adjusting its fixed income strategy. this is bloomberg. ♪