go. it will release your fat and it will release you.

>> would morning and welcome to daybreak europe. let's get to the stop -- top stories that set your agenda. the federal reserve's christopher bollard says that cuts don't need to come as fast as they have in the past. no end in sight to china's property malaise. home prices falling the most in nine years across 70 cities in the world's second biggest economy. we are live in davos for the world economic forum. we hear from the ceo of mastercard. angola's finance minister and the hong kong financial secretary all coming up in this hour. plenty to digest. quick check on the markets. you are seeing sour sentiment on both sides of the atlantic.

euro stock futures down. major momentum to the downside. ftse 100 futures down by a similar margin. across the atlantic, you would think perhaps the u.s. would see defensive bid. that's not the case. they are underperforming to a lesser degree than what you are seeing in europe. get s&p futures, 4784. down 3/10 of 1%. nasdaq futures underperforming in the u.s. side of things. a lot of this is coming back to the narrative, the idea that rate cuts may not actually materialize. it's a reality check for investors around the world. a lot of it comes down to comments from one particular member of the federal reserve board of governors, christopher waller making comments yesterday that moved the market. take a listen to what he had to say. >> with economic activity and labor markets in good shape and

inflation coming down gradually to 2%, i see no reason to move as quickly or as rapidly in the past. kriti: so he's on board that perhaps inflation is going to come down, perhaps the federal reserve may cut. history doesn't serve as an accurate roadmap for how federal reserve should move forward. perhaps that mentality needs to be taken with more caution. the bond market puts the 10 year yield at 406. higher above that key 4% level. five to seven basis point move in that tenor which we haven't seen in a couple weeks now. dollar strength is the story, in line with the bond market move you saw overnight. euro-dollar weaker. cable at 126. even brent crude down 6/10 of 1%. for now, quick check on how asian markets are faring. walk us through it.

avril: asia stocks are feeling that pushback. perhaps more importantly for assets in this part of the world, how the data from the region's largest economy along with stimulus plans have really disappointed. it's about a lack of confidence in the chinese economy. the hung saying losses accelerating past 3% in the afternoon session. markets are capitulating. all the stocks on the index are down. it's hovering at the lowest level since november 2022. there is that dollar story. you want weakness amid all this. perhaps worth highlighting how the pboc fixed came in higher than the previous days. tolerance for the weakness in the chinese em to support exports and the economy in china. let's flip the board. there's a lot of data to get through. gdp data for the full year at

davos. what you need to know about these chinese numbers. retail sales were supposed to see a boost because of base effects. they disappointed. we also saw the property investment that decline. let's take a look at the other data. home price data from china today showed a steepening compared to the november number and a broadening, more 30's were affected all in showing us that the real estate crisis in the country, no end in sight. raising the question about china's momentum. can it sustain this? more portly, what is this going to mean for its role as an engine of global growth going forward? kriti: on the one side, you have the property story. thank you so much for walking us through that story. i want to stick with the consumer narrative because that's where we go next. we have our bloomberg team at the world economic forum,

gathering for their annual meeting. haslinda joining us live with a special guest. over to you. haslinda: it's about the global economy. i have the chief executive officer of mastercard. the world bank saying it's going to be a slowing economy. what are you seeing? >> we look at the economy through the linda -- lines of consumer spending. it's a seismograph. what we are seeing, taking a look back at 2023, the headline was resilient consumer spending. we saw a resilient consumer spending aided by a strong labor market. access to credit was available. consumers throughout the last year found a good balance to

satisfy their spending per -- priorities at the same time as dealing with elevated prices and inflation. as you looking to 2024, the mastercard economic institute who looks at the global economy at large, what they are seeing is a year of global expansion. again, the outlook on the labor market remains positive for the time being which will help consumer spending. yet again, when we look at the united states, we expect the story of continued prioritization. being mindful of their spending because costs are high. relief might be waiting in the wings. if the fed cuts rates, there are a lot of people who expect that. it will obviously continue to boost consumer spending. haslinda: voices in dallas saying those rate cuts aren't coming. saying that it's premature for cuts to happen this year.

so rates may remain higher for longer and hence impact consumer sentiment. michael: the consumer has adjusted to the current rate environment. we look into 2024 with a fairly positive you. haslinda: we talk about china. we just talked about how china's data has disappointed. exciting times for you in china because of that license. what are you expecting? competition will be really stiff. michael: we are entering a payment market that is highly developed. china built solutions, qr code based spending. for tremendous digital companies, it's true that over the last couple of days we been very successful partnering with china for cross-border spending needs. chinese consumers traveling, tourists supporting their spending needs. business-to-business payments

and so forth. what we are bringing to the market now is being more connected to the domestic economy. there's a global solution that works domestically in china going forward. has already worked globally, coming together. we are going to be successful. we are busy ramping up. we see the welcoming from our chinese partners and banks. let's go and put programs out into the market and new spending solutions. haslinda: we talk about how it's a lucrative market. 1.4 billion people. how much of the market can you capture because you are competing with the likes of union bank which is government-backed? michael: again, you come to different segments in the market. take small business in china. many economies around the world, small business isn't served as

well as other corporate sectors. that's a big opportunity. you always have new people entering into the payment market , it continues as the population grows. all across, we see plenty of opportunity in that cross-border angle. it is still very unique. outbound tourism is growing rapidly out of china. we see this in our travel data. we are at about 75% of precrisis travel. a lot of catch up still to do. we are best positioned to serve that. haslinda: when you take a look at asia, japan is being revived. there's a lot of excitement about the market. what potential do you see? michael: i spent last week in japan. in gauging with japanese banks, with our partners, with telcos. there's a lot of focus on catching up with digitization. moving to the latest age technology that's out there. we see a tremendous underlying

trend, aside from the macro trend and rate environment. an underlying trend on digitizing the economy. the stated goal of the government of the digital ministry is to digitize the japanese society. we are very excited about japan. you have banks out there that are willing to take the latest technology. japan really welcomes partners like mastercard. haslinda: what is the strategy? what are you hoping to gain? what are the goals and targets? michael: we are looking forward to gaining more market share obviously. that's by putting more payment solutions into small business, into corporate payments, into consumer payments. again, leverage our aspect of being globally connected. local brands are in a somewhat different position and we can offer that to the market. haslinda: one of the big themes in dabo's is ai.

you've embraced ai as a company. how are you addressing the issue of inclusivity in ai? michael: it is the big topic of this week. you walked on the promenade. two years ago, it was about digital assets. which we've embraced. it's all about ai. the question of bias, inclusivity is really a very important one. as a company that serves all segments of the market, it's important to pull everybody in. explain ability. how does ai come to a particular conclusion? is there bias? we've put out clear data principles around that. transparency, we will tell our customers that we arguing -- using ai. privacy and security, things we do all along. we are focused on a very principled approach. it's the only way to do it. in the end, it comes back to the theme of trust and transparency.

people will trust us and they will use it and the technology can actually live up to its promise. haslinda: what kind of partnerships are you looking at right now? michael: the partnerships we are seeing our with our traditional customers. all the banks are coming to us and saying, what can we do together with this technology to provide a small business consumer out there? i will give you an example. in the retail space, we have partners around the world. if you wanted to have a natural language conversation where you say, i'm going to a beach wedding and i need a suit, that language search will live on retailer websites and is going to be one of those examples. take it into the world of small business. small business owners are focused on running their business. they are not thinking about treasury and operations that much. you can imagine the world of the digital cfo. optimizing your cash flow.

another set of solutions. we are talking to our partners about all of those. our scientists have been busy over the last decade. how do we power 125 billion transactions a year? it's through ai and machine learning. the promise of generative ai adds additional capability to that. haslinda: always a pleasure. thank you so much for your time today. taking it offer us, and i'm hitting a back over to you. kriti: a conversation about not just the consumer story but also the ai story and how they are going globally. thank you so much for bringing that interview live from davos. coming up, we continue our coverage from the world economic forum. now speaking to hong kong's financial secretary. first up, africa. angola's finance minister joins us next. we bring you a key discussion from bloomberg house in davos. the ecb president joining us. don't miss that conversation.

plenty more ahead. this is bloomberg. ♪

kriti: welcome back to daybreak europe. quick check on the asian markets. very accelerating selloff when it comes to the hang seng index. extending losses for the most since 2022. 4% decline on the index. 5% earlier in the session although it pared back that initial loss. what's important to keep in mind is that retail sales not helping this particular region. it speaks to the idea that as you look at the new home price data that we got, you are starting to see this idea that even though china is pumping stimulus after stimulus, using a variety of tools to direct

intervention is not really stemming the losses. to see that weakness across 70 cities in the world's second-largest economy speaks to that decline. certainly something we will be keeping a very close eye on. it has global repercussions, especially when it comes to china and the readthrough into the global economy and the g10 story but also the front tier market as well. that comes alongside the inflationary story. inflation in angola soared in the wake of a cut to fuel subsidies. that led angola's central bank to raise its key interest rate for the first time in more than two years in november. i'm curious about what 2024 might have in store for africa's second largest oil producer. haslinda is in davos with another interview for us to shed some light. haslinda: with me is angola's finance minister vera daves de sousa. we talk about the inflation issue.

20% elevated. it's been an increase for eight consecutive months. what are the steps being taken to ensure the inflation eases? vera: thank you. fighting against inflation is the core mandate of the central bank. the central bank is looking at it very carefully. via monetary policy, the central bank is taking the necessary actions, via managing the liquidity in the system. also increasing to some extent the interest rates as reference price for liquidity to move within the market. so at the short-term, the central bank is taking action on that.

despite all this, the government is also participating in this process with structural measures that are related with diversification of our economy. as you know, historically the main source of hard currency for angola's oil production, oil exports. so being able to export different products, different services, and also being able to produce locally some of the goods that we are importing. we protect us from shocks coming from that sector or coming from imported inflation. haslinda: do you see inflation easing in 2024? is there reason to believe that could happen? vera: i believe we need to see what will be the trend in the first quarter. central bank is totally committed for it, for making it

decrease. but we need to see enough of that for sure. the saying -- central bank will calibrate the measures in terms of policy, considering the trend we will see at this first quarter of 2024. haslinda: you are talking about how angola is susceptible to the movements in oil prices. it makes sense to diversify the economy even more. where are you with that? vera: we are paying a lot of attention. we are doing a lot in terms of agriculture on veggies, fruit, corn. but we need to scale up. we need to also attract large companies, commercial agriculture. be able to have more scale and address our internal needs. even export for our neighborhood conscious. haslinda: angola made an exit

from opec. how would that impact your oil revenues? how much would that help in the growth for the country? vera: despite all the efforts that we are putting in place to diversify the economy, we understand that we need at the same time to take the best advantage from the oil sector. it's there. we have oil reserves that we need to explore. we need to make sure that we are able to produce and put that oil serving our needs and contribute to our fiscal revenues. so that decision, we are carefully considering it. also, as a way to see the results of what we are organizing. we expect that it will help us to avoid the decline on the oil production.

at least the stabilization. best case scenario, a slight increase. we want to be able to have freedom to take advantage of the investments that have been made. haslinda: 3% growth in 2023. would you be above 3% this year? vera: 2.8 we are expecting. gdp will perform in 2024. for 2023, at least it was not a recession. but we expect it to be a very shy growth. but for 2024, we are expecting to pour night -- 2.8. the nonoil sector, we expect to be than -- the main contributor with 4.6%. the oil sector with a decline of 2.5.

despite all this, all the efforts we are doing to motivate the oil companies to make the necessary investments for us to increase oil production. haslinda: the incident in the red sea isn't helping either. vera daves de sousa. kriti: haslinda from the world economic forum. a crucial interview from the continent of africa. some of the budget decisions that they've made as well. we continue our tour around the world. coming up, we speak to hong kong's financial secretary. first, next elusive interview with the ceo of jpmorgan chase. interviews you don't want to miss. stick with us. this is bloomberg. ♪

kriti: welcome back to daybreak europe. to the other stories from around the world. the british prime minister has suffered a major setback over his signature anti-immigration bill. the deputy chair of the governing party resigned over his refusal to toughen the bills measures. anderson is among several who want the proposed law to block asylum-seekers from appealing to british courts before they are deported to rwanda. bp is reportedly close to naming its acting ceo as the permanent successor to bernard looney. an announcement could come later today. he was initially named interim ceo in september after looney resigned from failing to disclose past relationship with colleagues. spirit airlines shares lost half their value.

the court ruled that the combination would stifle competition. the ruling follows a trial in november where lawyers argue that the merger would eliminate a key incentive for bigger airlines to offer budget friendly fares. there's a lot going on there especially when we talk about the antitrust era that we've entered in the united states. we talk a lot about it in the realm of the tech space. the fact that spirit airlines made the argument that this is beneficial for consumer pricing in an inflationary environment was not enough of a narrative to convince some of the regulators to pass a deal that would have changed the face of the way the american airlines dynamic and competition actually works. really interested in -- interesting narrative. coming up, we go back to davos. an exclusive interview with the president and ceo of jp morgan. this is bloomberg. ♪

>> good morning and welcome to regular. i am kriti gupta in london. shares something across asia for fresh data re-couples concerns about china's economy. bonds on the move after christopher wallace had cuts don't need to come as fast as they have in the past. plus, we are live in davos from the world economic forum and in a few moments we will be hearing from daniel pinto and hong kong's financial secretary. we are digesting some of the political news coming from around the world. we are seeing risk off sentiment here.

1% now at session lows. 100 futures down .7%. the ftse 100 falling somewhere in the middle. 4777 is what we are watching there. the fed cuts are actually going to materialize this year. when you look at the bond market right now, you are seeing a 10-year yield that is at 406. it was higher overnight. somewhere between five and seven basis points. that is the strength of the dollar which is having ripple effects into the european currency. cable speaks to some of that losing dollar momentum you are seeing being flipped on its head. brent crude trading.

down .6%. we are going back to the world economic forum. this is to figure out what happens to markets. daniel, as always, thank you so much for giving us a look at your busy schedule. when you look at markets, a lot of participants say there are a lot of risks out there. there is climate change moving. do you think the markets are too optimistic? >> i think the probability of softening in the u.s. is decreasing as time goes by.

this is the core vc by the end of the year. the economy will do relatively fine. the corporate sector is in very good play. having said that, the market was pricing until yesterday, six cuts. that is a very likely scenario. if that is the scenario and unemployment rises, why would you rush it? if everything continues to go this way. probably later in the year unless the other market is suspected. >> we have acquired bit of a rally toward the end here. >> even though the environment is like that -- we think about

markets -- when you're going to have very optimistic elements for next year, you have to get into rates. it is very likely you have a lot of upside for here in this scenario. but you have all of the peripheral risk. the geopolitical situation is stable. plenty of things happening in russia. the middle is tension between china and the u.s.. there are issues that have not been priced in the market. just try to be careful on this sort of optimism -- even in the scenario where the soft landing takes place. the recession will probably happen at some point.

>> daniel, did you actually expect a correction especially from the u.s.? >> i think that depends on the scenario. inflation -- if it does not come down, in that scenario, you would have a recession, probably. the scenario where the subletting is anchored, what you will see is a market that does not go anywhere. in any event because it is a bit higher priced, -- >> what is the understanding of these politics? we see a little bit playing out. we maybe don't have the fear that we would have had three years ago in marketing. >> geopolitics never affects the economy too much.

it is a big issue except it massively escalates. we have not seen a big impact of geopolitics into global growth. so essentially it is really bad what is going on the background. >> how much do u.s. elections actually change? what kind of policies could exley change his trajectory? >> it is too early to say. >> we invest for the long term. we have been going through the previous one and the previous one and all of this. we employ around 200,000 people

regardless of who in the white house. >> the soft landing is your base case. what happens with china? >> i think that china is seeing many challenges. real estate is one. they have issues with their population aging. so the stimulus will establish growth for will be the first half of the year. the chinese economy slows down your growth. and europe is traveling, the slowdown in china, people they are concerned. because people believe in the economy and they feel confident to spend. and all the challenges they are facing. at the moment, they are not

improving. >> is it actually a good time for all of this? >> they are pricing the economic reality. >> is there anything else in emerging markets? >> i think the emerging-market -- they started focusing on inflation way before. they started normalizing. the middle-market normalized rates. i think they are in a very good position. but the concept of emerging markets -- i think that is a flawed concept. you can see x ago doing very well because of a lot of the business going there, there is a

huge amount of investment. correct the president -- argentina is here. because i think they are doing all the right things. i think this may be a great thing for the beginning of the change. >> what will drive growth in the future? what's the stock prices have done well because the company is doing very well. but there are so many things. we look at the components of that. when you think of other opportunities we have for

growth, was acknowledged in the united states -- we are now in every state except hawaii and alaska. we are a very small market ship. international retail is our opportunity payments. there is plenty of growth coming here. i think the company has the returns to continue to invest in intra-cycles. would it really allow us to continue regardless? >> we see some of your competitors -- there are also job losses. >> i think we are focused on our core investment areas. we are employing around 220

people. the number of people we employ has been growing. think that where we see opportunity is clients for sure. we will focus on that. requested bonuses are probably what we are expecting. is this year going to be great for your back? >> i think all of the components look like a strong year. we see opportunities in retail and investment banking. but -- depending on the volatility and the markets, we will see possibly more payments. we look at plans increasing, we will increase here. for sure.

>> you have always thought about markets and the pipes that make everything move. what is on your mind? >> the u.s. has been a bit of a challenge. i think one of the objectives is harmonization. they think the plan in the u.s. may be many things but they are not harmonizing it. we have things they are going to create -- they are going to create outcomes that are not wanted. more and more push from the regulated sector. i think that a lot of this is going toward markets. we have a problem with liquidity. this is making it even worse. at the end it will affect the

advantage that the u.s. has. overall, i think there is an analysis on the economic impact. it has graduated to a point where it makes sense to have it. >> could this lead to some sort of financial stability? >> that i don't know. i think it would create credit into the economy, marketability. you know what happened. it is up to the regulators to understand what they are doing. thank you so much for joining us daniel. with that it will send it back to you in london. coming up, we are also having inflation in monetary policy at

8:00 a.m.. request that was francine lacqua there at bloomberg house in dallas. she was speaking to the president of jp morgan. she is putting an emphasis on the geopolitical risks on ukraine, the middle east and the geopolitics. the agent does not necessarily help the case. white positively comes to the economy and the market. he said something our next guest might actually share. also today, live from bloomberg has, a conversation with ecb president. there is a lot going on. you deftly want to tune in for these guests. stick with us. this is bloomberg. ♪

>> welcome back to daybreak europe.

i am pretty good debt in london. asian markets continuing their decline. hong kong leading those losses. the chinese gdp data came in weaker than expected. for more on this and more, we want to go to haslinda. >> those declines coming on the back of five years of losses. let's speak to paul chan. thank you for joining us today. they are currently down about 4%. people say this is a vote of no-confidence on hong kong or china. going forward, it will be coming down.

>> it is about confidence, it is about trust. how does it get fixed? >> there could be some misinformation antidotal bank deposits of the system. at the end of december, it was about 5% higher than last year. the figures indicated that the capital flow was inflow instead of out flow. >> what is your pitch? here in davos, just a patient -- does it involve the rapid recovery of china? >> the timeline is recovering. department growth is stable. looking at the committee meeting last december. stability above the property

market, above the local government debts, about four an expectation of china's economic growth. 2023, their economic growth was about 5.2%. exiting the initial target of 5%. this year, 2024, the target is about 4.6%. it is under right track. as to hong kong, i think now could be good timing for long-term investors. no matter if it is the real estate or property market. >> there is instability in the property market. not in china, not in hong kong. prices in hong kong in particular have been on the decline. >> it is on the decline because the interest rates were high. the political tension was challenging. people were concerned about economic recovery.

the interest rate environment got stabilized, the interest rate cut is coming. the economic situation in china, europe and asia are very positive. i do think the penalty is there. they would be better to assess when to fulfill the market. >> are you considering other measures? would you consider easing the cooling measures for the property sector? >> i am afraid i will not be able to comment on that. let me assure you hong kong has been monitoring the situation. policy objective is to have a healthy property market. that grows in line with their economic balance.

in the medium to long term, i am positive. i look at the common supply of land, computer units and the absorption rate as well as secondary property units was at a low level. last year was 43,000. if you look at 2023, you would take up about 60,000 units. then the computer units would be able to observe. >> hong kong is dependent in tourism and tourism numbers.

other measures that can be implement it, what are you looking at? >> we welcome both chinese and international visitors. over the past two or three years , hong kong is kind of isolated. plus, the misinformation about hong kong and western media. people may not fully understand the situation. our idea is to organize more macro events. >> hong kong is spending a lot of time in chinese cities like shenzhen. might you consider departure tax? >>, think it is something you can do with. >> we will have to leave it there. we thank you so much for your time today. a sense of how he thinks of

stability in the property market. >> thank you so much. we will be live from dallas all week. plenty of big interviews ahead. is managed by mr. at about 10:10. plenty more ahead. stick with us. this is bloomberg. he is not

let's welcome back to daybreak europe. i am kriti gupta in london. it is all about the bond market here. i want to bring you a chart as we wrap up the show. specifically talking about how we are positioning in the options market around treasuries in particular. this chart here will show you simply the skew shown by 20

delta cause. that is a mouthful to talk about the extra premium you have to use to hedge some sort of treasuries rally. that era really speaks to this idea that point more people are betting the bond market that rates are actually going to come down. compare that to what you are hearing from the likes of christopher miller for example in the last 24 hours, saying look, 67 cuts are pressed into the market. should the federal reserve really be delivering on that? that is what remains to be seen. that is the chart that i will leave with you as we move on positioning. does christine lagarde follow the lead of jay powell? that will be a question that will be asked. she joins us in just a few minutes. that conversation coming up at about 7:00 a.m. london time. 2:00 a.m. if you are in new york. this is bloomberg.

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