haslinda: welcome to --haidi: welcome to "daybreak australia." we are counting down to asia's major opens. annabelle: apple shares jumping

after the bell as it predicts a return to sales growth. investors also liking the dividend increase and wider stock buyback. haidi: attention turning to friday's u.s. jobs report for clues on rates and possibly a third japanese intervention this week. annabelle: plus, bloomberg reveals how blacklisted chinese tech giant huawei is secretly funding cutting-edge research in u.s. universities. haidi: take a look at how we are setting up for this final friday session. it has been a petulant week both in terms of reaction to the fed, the big action we are seeing across pricing for the, but also a number of public holidays. asian stocks are set to rise as really big tech those apple numbers set to lift some of those earnings of companies across asia. new zealand on the back in the early part of the trade.

chicago, nikkei futures looking pretty perky, about .4% higher. we are also looking at when it comes to the next leg of what we see for chinese equities in hong kong, the a 50 china futures index up by about .4% when it comes to futures trading. watching the yen trading pretty steady at 153.27. really, the market is hunting for more signs of japanese intervention. that would be in fed accounts. the new data we have seen from the federal reserve's various accounts indicating we may have seen the funding of currency interventions by japanese policymakers in this week alone. as always, the yen front and center as we round out what has been a busy week. we continue to watch for u.s. jobs numbers to be able to add to some of the commentary we had

from the fed this week. annabelle: that's right. the jobs numbers will definitely give us clues on the direction of rates in the months to come. we have futures coming online, but the jobs report friday, we are forecasting a gain around 240 thousand nonfarm payrolls being added. that would be, though, the slowest pace we have seen going back to november last year. you are seeing a bit of positivity on the screen, and that bit of a run-up we have into the report coming out, the dollar as well you can see dropping the most since 2024. what else we are tracking in the session is the moves we've got in tech stocks. in particular, you can see the nasdaq is pushing a little bit higher. we did have that rally in tech extending in late hours. it was that big focus on apple numbers that came out. it has been a very mixed sort of tech report. we have had a lot of optimism coming into names like microsoft

and alphabet, for instance, that have impressed investors that they are in particular was adding to their bottom line. other ones, though, have been a little disappointing. one of those that really stands out has been meta, so far. there expecting overall sales to grow in low single digits in the current quarter, but of course, that focus at least in our part of the world, has very much been on china as well. haidi: that is really at, isn't it? the slew of bad news we have had coming out of the chinese market , the concerns over the consumer, concerns over regulatory restraints, security restraints and how companies like apple are being affected by the u.s.-china relationship, really being called into question over the last few months, so that aspect was a big relief, right? one of the reasons we saw apple shares surging in extending trading -- extended trading on

the back of those numbers, commentary around stronger-than-expected sales being posted by apple and also, that predicted return to growth in the current period. let's bring up your bloomberg reporter, mark gurman. it has been a challenging few months of news flow for apple. what has really changed these numbers? what is interesting to you? mark: you are seeing annual declines across many of their product categories, from the iphone, that's a $5 billion decline. the ipad, $1.5 million. really bad decline, i would say, a concerning decline in wearables, home, and accessories, but the big news is declines are not as bad as many on wall street had feared. the china number is not as bad as people on wall street feared. that's what these estimates told us. these will come in about $15.5 billion. they came in about $1 billion

better than that, so that raises the question, why are we comparing estimates in the first place, right? the other thing to know is that tim cook is saying that the declines in china have nothing to do with the iphone. he is maintaining the phone actually grew in mainland china. he said the problem is the other products, the mac, services, the watch, you name it. overall, they are down $5 billion, but this is probably the best quarter you could have while declining in overall revenue by $5 billion. the call turned into nai lovefest, right? a lot of clambering over artificial intelligence and what it could do to apple's bottom line in terms of services on the product themselves. if you are an apple investor, there was a lot you probably liked on this call today. annabelle: give us more details on what we got on the ai front. there's a perception apple has been a little bit slow behind its counterparts in big tech.

did we get enough to reassure investors on that front, do you think? mark: it's not just a perception. they are about two years behind the competition in generative ai. they were caught completely flat-footed on generative ai. they did not see it coming when it was right next to them. they were so advanced in ai a decade ago, they have completely squandered the lead. in terms of reassuring investors, that will have to take place on june 10 at the annual worldwide developers conference where they are going to make their ai announcements, right? apple could talk about their exciting upcoming announcements as they want, and to be frank, i don't think wall street really cares what the announcements are as long as they put the ai buzz word on them. apple's cfo on the calls that people are buying the new macbook air because of its better ai performance. wall street does not know that apple does not include any new generative ai features on the macbook air.

does not matter because it is positioned as ai hardware, and that's good enough, for wall street to know that in terms of the ai game, apple is they are, too. i think the announcements we are going to see will be pretty impressive in june. i will tell you that. haidi: bloomberg technology reporter mark gurman. thank you for bringing us some analysis on those apple numbers. we will get more a little later on. sticking with tech, huawei has been one of the biggest competitors domestically for that difficult china market for apple. bloomberg has learned that huawei is secretly funding cutting-edge research at u.s. universities through an independent foundation in washington. that is despite a web of conditions over national security concerns. it is an incredible story. how were they able to do this? to get around, as we say, what has been an intricate web of

restrictions to be able to fund this research in secret? >> yeah, it's very interesting. basically, huawei a few years ago started funding a research competition that was administered through a foundation based in washington, d.c. what we have learned through our reporting is that these are hundreds of researchers from top universities in the u.s. and around the world including places like harvard -- these researchers are applying to get funding to win prizes from this competition. they got the money was coming from the foundation. they actually had no idea that all along, this competition was 100% funded by wally -- by huawei. >> a number of donors remain anonymous, so they say there's nothing unusual about the practice, but is it illegal at all? >> yes, they did say there are a lot of donors that prefer to

remain anonymous. that's true generally in terms of donors to the foundation. in terms of donors to specific competitions and prizes the foundation is sponsoring, there are 11 on the webpage where this huawei-sponsored one exists, and all 10 other than this one make very clear who is sponsoring it. it's usually individuals, companies, or some sort of combination, but this particular prize does not have any disclosure on its sponsorship. at the same time, none of this appears to be illegal. there's so many restrictions on huawei from the u.s. government, but this just kind of falls in a gray zone. one of the biggest restrictions are u.s. export controls that than people and companies from sharing technology with quality -- ban people and companies from sharing technology with huawei, but because this is

academic and is meant to be published, it falls outside the scope of those rules. haidi: have we heard every action from universities and researchers that are involved? optically, this is challenging. >> yes, i spoke with a bunch of university administrators and also the researchers, and they were all very surprised to learn of huawei's involvement. the issue is that many u.s. universities in particular several years ago decided to ban researchers from having any interaction with huawei because they were concerned it could put their own access to u.s. government funding at risk. so it has created a very strange situation where these researchers who applied with their universities' approval -- some of these people won money that is going to fund very interesting science research, but, you know, had their universities known that huawei was funding this, they may not have been able to enter this competition.

annabelle: that was our tech and national security reporter kate o'keefe with that bloomberg exclusive. sony and apollo are said to have made a $26 billion proposal to buy a media giant. let's get more familiar reporter who leads our media and entertainment coverage. this offer is being described as a nonbinding expression of interest. tell us more about the details. >> it's one of the head scratchers here. it does raise questions about what they are really trying to achieve, but paramount is pretty far along on a deal with independent producer david ellison on a takeover, essentially, and apollo has been weighing in with various offers, first for the film studio. the company kind of brought in

sony. this could potentially be a huge deal for hollywood, combining two of the five remaining really big film studios, sony and paramount. what that would mean in terms of hollywood and competition and the number of movies they get released and jobs for actors, writers, it would be a big change in the business for sure. haidi: you have the potential consolidation of two big hollywood studios. is that likely to be -- is increased scrutiny likely to be a big hurdle? >> it is. we are not getting a clear insight on what happened with the big studios. the federal communication commission did change the rules. it used to be -- if you remember, rupert murdoch had to get u.s. citizenship in order to own fox tv stations. that's no longer the case. foreign companies can own u.s. broadcast stations, but there

would still be hurdles. there would be groups that would need to weigh in on ownership. we know sony owns columbia pictures, big tv business, here already. haidi: where does this leave sky dance? >>'s guidance is still kind of in the pole position. there's been a lot of opposition because smaller investors say they are cashing her out at a premium price and merging what remains with a very fat price for david ellis and company. they feel like they are getting diluted in this and they don't have a vote, so quite an uproar

from smaller investors, some of whom are not very small. haidi: senior editor chris palmeri, who also leads our media and entertainment team. next, makes earnings from the magnificent seven and we talked through those apple numbers as well. this is bloomberg. ♪

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constant contact makes it easy. with everything from managing your social posts, and events, to email and sms marketing. constant contact delivers all the tools you need to help your business grow. get started today at constantcontact.com constant contact. helping the small stand tall. haidi: let's take a look at how apple is faring after we had

that rally on forecasts. a lot of the aspects of the business were still down as we were speaking about a little bit earlier, but we did see that jump. we are still up about 6% in the late a trading session. predictive return to growth in the current period, so some of that optimism returning, so there has been a challenging few months. relief to investors. we have seen sales declines in five of the past six quarters and is ongoing headwinds in china. in a lot of ways, this is probably not as bad as what was expected. they are expecting sales to climb by a percentage. we are also seeing just treading water when it comes to alphabet.

our next guest says she is constructive across tech and some of those big names that really dominated in the u.s. markets. great to have you with us. of course the magnificent seven across tech more broadly, what are you most constructive on? how much is there a little bit of relief that we are not getting as much hawkishness from the fed as we expected? >> interesting question. thank you for having me on. we are constructive on technology, and the biggest driver on that has to do with earnings. where we are seeing the strongest growth is in earnings for the tech sector. when we look at q one earnings, that's north of 21% for technology. really impressive numbers.

we look at numbers throughout the course of the year. that is driven a lot by ai, increase in demand for the cloud, and we are seeing that across the board. we are constructive on that part of the u.s. market, definitely. annabelle: what other opportunities are you looking at? the concentration is across the mega caps, driven by what our reporter referred to as the ai lovefest on apple's earnings call. is that going to be the dominant theme? >> i don't know if that is really an investment theme i want to jump on to. that said, ai is going on with the tech sector as a theme, so, yeah, we like that a lot. when we are looking at the u.s., large and in charge is how we are positioned in the u.s.

large-cap earnings growth much stronger than what we see in the small-cap side of things. as you touched on in the first question, the interest rate environment, i think it is generally good for the stock market in the u.s. right now. there is some concern. no matter where this is coming from, i don't agree with it, that the fed might be increasing rates this year -- we just don't see it. i don't think that will happen. there's a couple of reasons for that. i don't think the fed wants to raise rates. i think they want to pivot to lower, but more than that, inflation data is a little bit different than it was at the end of last year, but it is certainly still moving in the right direction in our view. the yield curve continues to be inverted, and that is telling us loudly that i next move for the fed will be to the downside, so all of that is good for the u.s. stock market generally and in particular, where we are seeing strong earnings growth and we see that in the tech sector and

not just the tech sector. we think the breadth of the u.s. market is improving, so we like the broader u.s. stock market, particularly on the large cap side of things. >> playing into that, your views around energy. we are also seeing that sector continue to outperform? >> we do like energy, and that is mixed in terms of inflation data. often you see energy companies rise with inflation and if we see inflation coming in, why do we still like energy? the reason is we are classically trained investors, and i think the current market is really good for that, and what i mean is that strong earnings growth and strong dividend yields, putting that get -- putting that together with strong cash flow yields lead to good movement in stock prices and where we see absolutely great cash flows and strong dividends is on the other

things. that can get a little bit dwarfed by all the talk about ai and cloud in the u.s., but on the energy side, it is absolutely the fundamentals are what we love to see in a sector, so that is an area where we are also positively tilted. >> speaking of --annabelle: speaking of the direction for rates, and we will get more clues with jobs data out later today, where do you see it going at this point in time? >> the yen, what a tug-of-war going on to help that exchange find a bottom. the delay in cuts for the u.s. that has worked its way through with the interest rate like we were talking about, that maybe we will not have as many cuts in the u.s. as we had expected, maybe we will have some increases, that is punishing the yen, but don't bet on continued weakness on the yen in our view.

the reason for that is that the japanese government has been intervening to help the currency and i don't see any reason why you would not expect them to continue to intervene. the government is really working towards -- has shifted that entire market, not just the yen but the stock market over there. what a stealth bull market we are seeing in japanese equities. the yen has obviously hit record bottoms, but i don't think that is going to continue. we are bet against that. as well, it's interesting what is going on in the japanese stock market and having exposure to that broadly as a u.s. investor, i think a lot of people have not gotten in there yet, and yet, there's a lot of excitement and there still can be a lot of excitement for japanese stocks. we are very positive on japan as well. >> thanks so much. we will have more ahead on "daybreak australia."

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haidi: you're watching "daybreak: australia." looking at how the japanese yen is faring in asian trade, equity markets will be shut for a public holiday but we are seeing strength coming back into the local currency there, the greenback -- against the greenback. put it in context because last night we had the dollar falling so far this year. a bit of dollar weakness ahead of the all important jobs report later on friday that could show a bit of suctioning and a big indicator for rates from here. we are hearing of intervention possibly this week, two times.

the rbc saying for instance we could travel to around 165 to the dollar. it is that story of dollar weakness coming through. you are not just seeing currencies trading study, but that content to the jobs report on friday. we will have more ahead on "daybreak: australia." this is bloomberg. ♪ when i was your age, we never had anything like this. what? wifi? wifi that works all over the house, even the basement. the basement. so i can finally throw that party... and invite shannon barnes. dream do come true. xfinity gives you reliable wifi with wall-to-wall coverage on all your devices, even when everyone is online. maybe we'll even get married one day. i wonder what i will be doing? probably still living here with mom and dad. fast reliable speeds right where you need them. that's wall-to-wall wifi with xfinity.

♪ annabelle: we can see that big jump for apple in after hours. we had the big tech giant reporting his numbers after the bell today, it really impressing investors. you can see we had a forecast for a return to the sales growth. the company announced a major

buyback program as well. we'll ers for china in particular. let's get more on that. joining us is maribel lopez, founder and principal artist at maribel research. square that out for us a bit. going into the numbers, we had reports coming out that apple was seating ground in china to local rivals. but the company appeared to counter that. were you expecting that sort of commentary? maribel: the word on the street was they were going to be down high double digits and they basically give back and said they would be doing well in mainland china and i think that surprised everybody. the number for iphones came in at what we expected. they actually refuted any claims on their earnings call that there were serious long-term issues in china. both of those i thought were extremely positive which is why you are seeing a bump in the stock now. annabelle: again, china has been

such a key market for apple, but where are we seeing -- is there any concern that you have around its sales there at all after this earnings report, and going into it, did you have concerns that have been eased right now? maribel: i think everybody has concerns over iphone sales for the next several quarters. there is clearly strong competition. while we blew away their numbers this quarter -- huawei blew away their numbers this quarter. we still believe that will be the case going into the next several quarters, it will be a very difficult environment for china and a real street fight for apple. they tried to make light of it. they talked about the china mainland landscape. but there are still concerns that will be issued in china for the seven quarters to come. overall, they guided very well.

they refused to guide on iphone sales at all so we couldn't get a lot of color on that, but they are expecting growth for the next quarter which i also think surprised people. haidi: does that make the investor reaction a bit perplexing and perhaps doesn't have a lot of longevity? because as you have just gone through, a lot of what we heard in the report was not that much upside particularly in the long lasting for the forecast. maribel: i actually think that the challenge with the report that we heard was it was a very mixed report. some things did very well and something did poorly. ipad sales were down. max sales were up more than we thought it would be. the service revenue is up more than we thought it would be but it is still a much more basic they are growing off of, so while they are definitely some strong fundamentals that they have, the i phone number is really the number to watch because that is.

it will take many quarters for something like the vision pro to catch up to anything near what a loss of iphone could be so. the balancing of the portfolio for apple right now is a really interesting, tenuous and possibly opportunistic outlook. the question is, what is the timing of that? frankly, none of us really know. i think that's one of the reasons why apple refuses to guide on certain product categories, but have much more confidence in other product categories. for example, i was surprised to hear that they expected to have stronger ipad sales moving forward. the thing that is a real challenge right now is to try to unpack the timing of when certain sales will come back. they obviously have some releases in june that we are interested in. their is obviously a little discussion about what they will be doing on the ai software side. . we still feel like there is another shoe to drop and until then, we don't really know what is going to happen.

haidi: is that shoe potentially ai? it feels like a lot of -- the ability to hold onto the top tier or not cede it for too long depends on the ability to play catch-up when it comes to ai. maribel: software innovation is really what is driving iphone sales. the hardware is relatively similar with the exception of fold ability. so it is all about ai software right now. so in the coming three or four weeks, we expect to hear something on that. we expect to hear a much stronger ai software story from apple. if that doesn't happen, it's going to. quite an interesting effect in the market because they are going to sit other companies like some sun that have been really pushing ai for several strong quarters now, and that is driving innovation around things people care about like how you take photographs and make those better. that is where a lot of the ai

innovation is happening. annabelle: what did you make of the share buyback? the game that is something a lot of investors have sort of come to quite optimistically. i maribel: maribel: actually think share buybacks are not a bad idea particularly when you have a scenario where you had a blitz and the shares have gone down. it's a way to level out the playing field for the volatility of the stock which i think is good. they back that up with a nice dividend. if you combine the two of those, they are trying to create a much more stable foundation for the stock price moving forward. so i think it was a good move. annabelle: maribel lopez, great to have you with us, founder and principal analyst at lopez research. let's look at how currencies are trading as we continue to watch moves in the japanese yen. of course there are hints that potentially we could see evidence of further intervention. right, there has been

speculation by the markets that yen intervention took place if you look at the numbers seen in said accounts. two potential ways we might have seen japanese officials step in this week to most of the currency. the early gains in the yen potentially letting officials on friday breathed a little bit easier, that is, of course, ahead of the u.s. jobs numbers. that analysis by bloomberg of the bank of japan's current account figure suggests that they probably did intervene in fx on thursday, for the second time this week. let's get more from garfield reynolds who does our markets live in asia coverage. it's been a lot for you this week, in terms of hunting down the evidence of the day or didn't they? meaningful implications of whether or not they did? garfield: it does seem pretty clear that the did. by now, the two times when the

yen moved five yen stronger per dollar in a very short space of time, those already looked very much like intervention. then we had those figures you talked about which, when you compare what went on in the bank of japan's current-account to what it would normally have been expected with the rest of what they do, that says that they probably spent tens of billions of dollars buying em stocks and the way intervention works in japan is that the ministry of the finest says go. the bank of japan then executes for the ministry of finance. so that looks like that is what happened. if it wasn't what had happened, you would almost think that they would somehow have indicated otherwise, although maybe not. but the market is certainly acting on the assumption that they did, not just once, but twice. it's very interesting to see today that at some extent, this is driven by the underlying

fundamentals, which is that treasury yields are coming down after powell's perceived relatively dovish performance at the fomc. unlike on monday, the yen is gaining. monday, in the onin-depth -- lead up to what end up provoking the yen intervention, we had the yen weakening at a time everything was strengthening against the u.s. dollar. that looked odd. probably a signal to the japanese authorities that they needed to step in to stop the situation from getting out of hand. now, if anything, the yen is leading gains against the dollar, yesterday and it did so today. makes it clear that at least for now, traders are treating this as a one-way street towards yen gains. so far, that means that the stop sign, as it were, that intervention has thrown up, is working. the big test for that will be jobs, if jobs come in strong,

does that upset the apple cart as far as treasuries go? if yields jump back up? if yields go up, do people jump back into the yen bearish bets, or are they going to remain cautious because they are aware that the bank of japan could come back into the market at the ministry of finance's command to unwind the situation? especially with today being a holiday in japan, monday is a holiday in japan. it will still be the u.s. weekend. so, any yen bearish bets that get put on in the next 20 four hours worth of trading are going to be very vulnerable to fresh intervention. annabelle: garfield, we are also

seeing investors file in this week into hong kong stocks. it's been a significant rally, enough to enter a technical bull market at this point with mainland china closed at this time. do we see that rally extending or are we looking a bit overheated right now? garfield: on the one hand, it looks overheated. , on the other hand, there is some optimism about the idea that china's economy, in particular the chinese authorities' attitudes towards the property sector have turned something on the corner. we did have that april 30 politburo meeting which made all the right noises so investors will be looking at what follow-through there is to that when china returns from its holidays at the beginning of next week. they are probably also encouraged by the idea that the fed's relatively dovish stance will provide -- is nonfarm payrolls don't provoke any surprises -- will ease pressure on the yuan. in fact, what has gone on with the yen will also ease pressure

on the yuan. less pressure on the yuan to depreciate makes it easier for the pboc to be easier in its policy mix. that is positive for chinese stocks and, therefore, for hong kong stocks. haidi: garfield reynolds leads our markets live coverage of there. thank you. much more ahead on "daybreak: australia." we are also watching oil prices. iraq a few days to iron ore prices in particular after a big month of gains, a bit of downside to end out the week. oil having the biggest weekly drop since february. the demand-side concern continues to weigh. increased speculation that opec+ will prolong output cuts to shore up prices, and supply-demand dynamics playing out. we are headed to the biggest weekly fall for crude since february. trading just near $79 a barrel

for new york crude. more ahead them up. this is bloomberg. ♪ tax valara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh

annabelle: you're watching "daybreak: australia."

the latest on the corporate front. bloomberg has learned that nomura and mizuho financial group are facing more than $100 million of potential losses tied to the field stock trades by all blue capital. sources say all blue made a series of bad bets earlier this year and was allegedly unable to settle the trades. the size of the losses raises the questions about risk management at two of japan's largest banks. hong kong securities watchdog has launched criminal proceedings against a hedge fund. its founder, simon sadler, and a former trader. in one of the most high-profile financial persecutions in the city, the securities regulator alleges insider trading the case will return to court on june 12. anglo-americans' u.s. listed shares jumped on the report glencore is considering a potential bid setting up a takeover battle with the hp group. reuters reports that glencore has had preliminary discussions. glencore last week rejected an all stock offer from bhp --

anglo american last week rejected an all-stock offer from bhp. haidi: mike where a decline in profits. our guest joins us for a closer look. this was well signaled from it what was the weakness here? paul: the commodities business declined 47%. its contribution to the net profit from previously at major events like the russia-ukraine war had helped prop up commodity prices. it has been seeing substantially lower inventory management, according to a statement. the investment arm was another weak spot. contribution to net profit there down 48 percent. it has been a weak environment for m&a and dealmaking. no surprise that macquarie signaled this was coming. the cash dropped 3.2 5 billion. 30% decline from last year.

dividends sounds pretty good. but it is down from $4.50 earlier as well. macquarie says the ongoing economic uncertainties subdued market conditions and other parts of the world as well. so a fairly downbeat forecast as well. annabelle: why did we get on the guidance front from macquarie? paul: very little. this was closely and this was really only got. the ceo saying macquarie remains well positioned to deliver superior performance in the medium term interpret that how you will. macquarie says it will maintain a cautious stance, high inflation, high interest rates and geopolitical risks. perhaps notable from its absence was any mention of the major data center. it is an australian data centers

-- it runs data centers in australia, singapore, hong kong and japan. macquarie bought a 40% stake in the company. it is now valued to closer to $8 million. so any potential sale of that this year could be a big sugar hit to the bottom line. we still have analysts quite favorable on the stock. but it is dire for most of the aussie banks of the moment. macquarie shares, though, still up. it'll be interesting how markets react to this mixed bag at the open. haidi: paul allen in sydney. be sure to tune in to bloomberg radio to hear more from the day's newsmakers and get in-depth analysis from the tv broadcasting live from hong kong. you can listen via the app radio+ for bloomberg.com. more ahead. this is bloomberg. ♪ meets bold new thinking. (laughter)

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haidi: australia's two trillions on the u.s. retirement system is proven itself the envy of the world from the larry fink even told american policymakers to build on australia's model to solve the problems of the u.s. social security system. but even australia's enviable pile of cash will not be enough to sustain its aging population. for me bamberg joined us from

melbourne with today's "big take." we are seeing the australian pension super system getting a lot of attention recently. amy: it certainly is. as you mentioned, blackrock's larry fink quoted out in his annual letter to investors in march this year and that was on the back of jeremy hunt in the u.k. that the system here looks really good. that is mainly because developed nations are facing a retirement crunch around the world. we have aging populations globally and retirees are either relying on the public pension system, or on quite meager personal savings. blackrock's larry fink says they should study and model the australian system. by the system here still is not perfect even though it is the fastest-growing retirement system in the world currently. annabelle: maybe lay it out for us, because for australians,

it's a compulsory system, but what makes it different from what we have seen in other countries? amy: it is that compulsory system, which has now been in place for more than three decades here in australia. the u.k. has moved towards a compulsory model. in the u.s. it's a patchwork system depending on which area you live in and which retirement fund you are with. but also the rate of contribution sets it apart. when superannuation was first put in, compulsory for all workers across australia, it started at 3% of contribution, that is 3% of equivalent wage. that has steadily risen and it is currently at 11%. some places contribute even more for their employees. it will rise nationally to 12% in the middle of next year. so that is one thing. we actually have very good coverage in australia across the workforce, far higher than in other countries. some of the gaps for workers remain gig workers and people

who are self-employed. that is one gap in the system where we don't have complete coverage here in australia. haidi: and, in fact, it is seen as a good problem to have in terms of how to deploy these piles of cash, right, where the opportunity for asset managers? amy: there are a lot of opportunities. we regularly speak to us that managers visiting australia speaking to super funds, but also some of the biggest funds including australian super, australian retirement trust. the top three are opening offices in london, australian super has an office in new york and one in beijing. there are enormous opportunities. that said, many of the big funds are internalizing out of their investment teams, so it has made it to me competitive for asset to win their business. australian super is also known for being extremely aggressive in the way they negotiate fees for that service. so it's not an easy honeypot to tap but it has become a very

competitive space globally at most of the big asset managers are now playing in the space. going forward, we will see that the system is set to grow, sector quadruple within the next few decades. there will be an awful lot of money that needs to be put to work by money managers. so there will be opportunities, even though it is extremely competitive. annabelle: and amy, it is the envy of the world, but it's not exactly a perfect system either. what are some of the challenges? amy: absolutely. we did some analysis looking at the account balances of accounts in the 60-64 age group, and about two thirds, of the accounts at the moment have less than 200,000 australian dollars in them. that means people retirement will still need to lean on the public pension. you can get a part pension or full pension if you don't have enough retirement savings. there are also real challenges for women because there is a gender pay gap here in

australia, women are retiring with lower balances than men simply by virtue of the fact that they earn less throughout their career. as the system matures, a lot of these issues will be ironed out as more people come to the system having contributed at a higher rate. those balances will get bigger as people approach or go into retirement. still, there are some challenges with gig workers, as well and coverage in the system that way. and the gender gap, as well annabelle: that was our bloomberg pension fund responded amy bainbridge in melbourne. you can get more of today's "big take" in the terminal, and on the big take function on bloomberg.com. counting down to the trade open in korea and australia in a few minutes. we will be keeping an eye on apple suppliers after the tech bro my giant posted stronger-than-expected sales the last quarter and predicted a return to growth in the current

period. macquarie shares also in focus after they missed estimates after its commodities and global markets business take a hit. japan is closed for a public holiday today. south korea and australia coming online in a few minutes. . we will have more ahead. this is bloomberg. ♪

it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. haidi: this is "daybreak: asia." we are counting down to asia's major market opens. what a week it has been when it comes to yen volatility. suspicion of intervention

looking at the current account numbers. we do see characteristics of two bouts of intervention by japanese authorities this week. right, belle. we are also looking ahead to the u.s. jobs numbers after that less hawkish than expected pay that we heard this week, whether it will firm up expectations for policy going forward. annabelle: that's right, certainly the big focus on nonfarm payrolls expecting around 240,000 gain for the latest reading. slowest pace since november, . haidi: and big tech is in focus. we will be watching this apple has edges and suppliers. he saw investors reacting positively to what was relatively a mixed bag in the latest set of numbers. let's get you to the start of trading, we are actually 10 seconds into the start of cash trading as australia comes online. not much to report, but it has been