>> welcome to "daybreak: asia peer group we are counting down to asia's major market opens. >> asian stocks set to end the week on a high note. oil is rising alongside equities as tensions simmer on the red sea. u.s. stocks filing to the lowest since october. we speak live with the u.s. ambassador to japan. first, let us take you straight to the set up across asia going into the side of trading in asia. a little bit of upside as we get into the side of trading. we are expecting that tailwind to carry us through from what was a pretty big wall street session.

watching for apple suppliers here in asia as well given that apple climbed on the back of that analyst upgrade. as i mentioned, it could be a high day when it comes to chipmakers as well. some of these other big names with that sector boosted. .2% higher here. we are trading at lowe's about the first week of december kind of again adding a little more color to the narrative of when, where, how these rate cuts come through. quick take a look at how u.s. futures are coming online. not a lot of movement in the moment after the s&p 500 managed to gain ground. we had an analyst upgrade for apple. not to mention chipmakers get a boost, but the treasury's market

looked a little bit mixed because of that resilient labor data that you mentioned with jobless claims falling to the lowest level since 2022. we are also watching oil prices right now with the asian session coming under a bit of pressure, but it's really to do with what is happening in the middle east. not to mention u.s. stockpiles. we do have a cold front and production is getting hit a little bit, and this will really have implications for the broader inflationary outlook. we have more with the atlanta fed president coming up, saying that he wants to see more evidence that we are headed towards that 2% inflation target. we have, of course, plenty of guests at davos speaking to bloomberg and talking about where they expect the fed to go from here. take a listen. since we don't actually have that sound, but basically, the question right now is where markets go from here, where economies go from here is to

what is happening with the fed and what we can expect. will it be fixed rate cuts? a lot of people say the markets are getting ahead of themselves. >> we could hear voices from davos. we could hear from our very own chief asia correspondent. this is the eternal debate, at least for this year. >> oh, yeah, it's what is driving markets. what drove markets last year was if they stop hiking rates. what is driving them this year is when do they start. there's a fair bit of head scratching over the past few weeks about how strong the bets were on a march rate cut from the fed. the data were really backing that up and the rhetoric also backing that up. seems like there was some expectation that governor waller, when he spoke this week, might underscore his about --

his previous comments that he could see a path to rate cuts, but instead, he pushed back and in particular said he could not see the case for cutting rates as rapidly as they had done in the past. that has caused a pretty rapid unwind in those bets for a march cut, and some reduction in the expectation, but the market still remains very firmly of the opinion that there will be cutting now the rate cut is fully priced in for may, so the question will be -- how did the data go for here -- from here? how does the rhetoric go from here? do we get a rerun of the it's not much but later. do we then moved to will it be may or not until the second half of this year? >> is it's also the expectation of where bond yields could go

from here. with that optimism about ai, we saw chipmakers rallying and sending the nasdaq 102 a record high again. >> is the optimism about ai. even after we had a bad week for bonds, heels -- yields are still low compared to the heights they reached last year. by hook or by crook, tech has been the place to get strong returns. apple is rebounding after a little bit of weakness. apple is less of an ai play than a general tech play. netflix has been doing all right as well. all of those, the magnificent seven, they are seen by investors as being the place to go to get high returns with not a huge amount of risk. rightly or wrongly, that has been the perception that has been fostered in a post-pandemic

era. they have gone up most of the time. when they did come crashing down along with everything else in 2022 pretty rapidly came roaring back up, and they are one of the few asset classes to be back at a fresh record. investors have faith in them unless we get a serious bond selloff or something that disrupts the idea that through a combination of ai and their strong grasp on the consumer, that strong demand keeps on coming through for the high tech companies' offerings. unless something disrupts that, you can see them continuing to attract money in all but the worst couple of days that might strike in the next few weeks. >> garfield minerals here in sydney. we are also watching oil markets

as prices continue to ratchet higher. some of that pressure coming from the geopolitical situation. president biden saying strikes against iran by -- iran-backed houthi militants will continue. he is acknowledging the kind of limited impact, and we are seeing the houthis responding saying they will just improve their own military might. >> i guess he is saying we will just have to keep going. it is it's a gamble u.s. and u.k. have taken. initially, they were just targeting ships that were related to israel. once in a while they would strike. now because the u.s. and u.k. are involved, they are widening their targets and say they will go after any shipment related to those two nations. it is happening pretty regularly, any ships that go through that had any connection

to any of those three countries are being attacked, if it's by drones or by missiles. you are right, the houthis do seem to have a deep supply of weapons. it looks like this is going to persist for a while longer. about 4% of trade goes through their. there's talk about does this interrupt supply lines or play into inflation? it is probably too early to talk about that. the president himself has acknowledged that they are not making much of a difference at this stage, so we will have to see how it plays out. >> this goes to the future of the middle east. israel seems to be insisting over security control over the gaza strip and that is not sitting well with washington. >> no, it's not. you have to feel sorry for president biden. when he opens up his foreign policy brief each morning, it's just problems from one end of

the world to another. you got israel and hamas in gaza. you got lebanon. you've got iran striking out what it says is an israeli based in iraq. you have nuclear-armed pakistan. it is this really an unstable position we are in at the moment, but, yes, israel in terms of that position with gaza, it is not really a surprise that they say they are going to need to control the security situation with the gaza strip. i suppose president biden would be disappointed, but it would not surprise him in a way. prime minister netanyahu had been trouble for democratic presidents basically since bill clinton's time. his government is quite right wing. there's room for maneuver in terms of dealing with a state

for gaza or the palestinians, but it's extremely limited. his personal inclination has never been that he would support that. he does not believe the palestinians can be reliable partners on that front. others think israel's own policies contribute to that standoff as well. it is intractable again. the stakes are high. if there was any chance of actually producing some sort of viable palestinian entity, nations like saudi arabia, the uae, there is talk they would normalize ties with israel, the u.s. could then present a bloc in the region to counter iran and its proxies. there's is a lot at stake on the others, but the hopes are not high. >> michael heath with the latest on the middle east. coming up, china beige book international tells us why they think any economic turnaround this year will require more

interaction from beijing. their outlook later this hour, but first, we discussed geopolitical risks in asia and beyond with the u.s. ambassador to japan, rahm emanuel. that's next. this is bloomberg. ♪

>> we have the latest on a new estimate being sent to congress on thursday. the u.s. air force's new sentinel intercontinental blue missile program is expected to cost at least 37% more than the previously projected $96 billion. that would trigger a formal pentagon review that would include scaling back or terminating the project. japan has signed a deal with the u.s. to purchase up to 400 tomahawk cruise missiles as it ramps up capabilities to counter regional threats. the prime minister's government had pledged to double its annual defense spending to around ¥10 trillion by 2027. let's cross over to tokyo where our chief north asia correspondent, stephen engle, is with our next guest. stephen: that's right. our guest this morning's ambassador to japan. the u.s. ambassador, of course.

>> i feel so privileged. stephen: fantastic. we will be doing a lot more interviews here. you were at that signing ceremony yesterday of a deal that i believe was approved in november for the tomahawk missiles, 400 of them. obviously, this comes on top of what we heard about the patriot missiles. mitsubishi-heavy missiles. there is a stealth fighter being jointly developed for at least plans going forward with the u.k. and italy and japan. would you say these various deals indicate that the security threat is as dire as ever for japan and this part of the world? >> well, there is a security threat, but i do think japan has stepped up in a credible way both in terms of showing deterrence with the u.s. and their own but also group alliances. you mentioned the tomahawk

missiles, which is a bold step forward for japan. we are going to accelerate the training in march. in addition, one of the things i noted yesterday at the international press club, of all the exercises that used to be just u.s.-japan, they have all gone from two to 4-plus countries. they have doubled nearly in size , so japan has, and the united states in partnership, projected both an equipment level, training level, preparation level of credible deterrence to that level. stephen: you have been here now two years as ambassador. what kind of moves have you seen that have impressed you? you have tweeted about it, about what japan has done to its defense capabilities. >> across the board, that's one of the subject i talked about yesterday, that in japan, people had the stereotype about moving

at glacial speed. let's look not just at the security front but the economic front. first and foremost, 20 years ago, nato adopted 2% for gdp of defense. only 11% of the countries have done that. japan is doing it in five years. in their budget, they did not spread the tomahawk purchase over five years. they are doing it all in one year. much faster. second, i would also say in this area the training. in addition to the 2%, they are moving resources from the north to the south. third, not only on the multilevel frame, this gives a wider feel of deterrence, the camp david accords that president biden brought together south korea and japan in a historic meeting, an agreement of coordination not only in defense, last night is also all

three universities signed a quantum computing partnership and research so that it is reaching deep down. deterrence is on the diplomatic front. it is on the military front, and economically, japan's economy is getting stronger. stephen: which goes to the biden export controls on quantum computing. tsmc is building a new factory. >> three facilities there. there is big input in the semiconductor space, and the capacity of japan in the materials area, in the packaging area, there's no chip made that japan is not part of. stephen: you said the u.s. could act as fast as japan. what did you mean by that? >> on the security front. they have gone from 2% tomahawk

counterstrike. later on today, we are going to have a u.s. navy ship get prepared here. if you have a hot conflict, you are not sending that ship back to san diego or washington state or hawaii. you have to keep it in theater, but we are not prepared. we have the jones act. we now do the licensing agreement on obviously the patriot. there's other types of weapons and equipment we can look at and think about how japan's industrial base could be part of the arsenal for democracy. one of the things i have been very clear about when it comes to basically maintenance. one example, oh god -- our ships off of human have been delayed going back to port in the united states because we are behind in the united states on both the

maintenance and repair of the ship that is supposed to replace it. as the father of a navy officer, it is impacting the servicemen and women in the security of the united states because we have an antiquated system not ready to deal with the world. my only comment is we need to look afresh. are we doing what we need to do for our security, our deterrence, and to ensure we are putting our strongest and best stuff forward? i think japan could be a partner. >> lng. we are hearing that the biden administration is reviewing stricter criteria, climate criteria for approval of lng export facilities. what are the japanese partners coming to you and saying? >> one of the things i wrote about last week, the united states is the fourth largest exporter of lng to japan.

australia is number one. his is the largest lng market. japan, though, has already started of 35 nuclear facilities 12. seven more, which is what the prime minister committed to or pledged it wanted to do -- seven more are mothballed. it would eliminate russia and their ability to eliminate dependency lng market. second, japan's richest area for geothermal. third, japan's coastline is ripe for offshore energy. there are steps for a country that is historically used to energy vulnerability. there are steps being taken to lead it to a more stable and secure energy policy. lng, our partner is going to make a decision.

when he does, the world will know, but it is about the clarity of how to move and have an energy package that is both secure and stable and sustainable. stephen: ambassador, thanks so much for your time. next time we will do it a little bit longer. thank you for coming to our tokyo studio. >> great conversation, u.s. ambassador to japan speaking to our stephen engle there. much more to come here on daybreak: asia. this is bloomberg. ♪

>> you are watching "daybreak: asia." jp morgan has raised jamie dimon's pay to $36 million after it reported the highest profit in the history of american banking. his total is up 4.3% from 2022 with a one point $5 million salary and the -- with a $1.5

billion salary. jp morgan's revenue last year was just short of $50 million. wall street deals will pick up -- wall street m&a deals will pick up as rates come down. and carlyle group's david rubenstein sees -- tells us he will be shocked if the fed does not cut rates by march. jan capital now plans to launch with $5 billion to $6 billion, far below earlier ambitions of as much as $10 billion. the loan expectations underscore a challenging fundraising environment for the industry. some market watchers say japanese stocks risk becoming a crowded trade. strategist at hsbc have told

bloomberg the market has risen too far and investors should start taking profits, but that is a contrarian view. at bank of america survey this week found 59% of asia's fund managers are overweight japan. we will take a look at the set up as we get into it. we were about half an hour away from the start of trading in tokyo. we have seen those overbought signals for quite some time, but still, it has been a strong bolt out of the gates, if you will. we are seeing broadly and update as we end the week. asian stocks looking to rally into the close as we see sydney stocks were covering after five consecutive days of losses. watching and lot of the tech names in the asian session, of course, that was the big rally with the nasdaq 100 closing at a fresh record high. we are watching apple suppliers when korea, taiwan, and japan come online as well, given apple

climbing on the back of that analyst update as well. some of those spaces we will be watching in today's session. >> the philadelphia semiconductor index seeing its best day in more than a month. it was really that reaction to that resilient data with jobless claims dropping to the lowest level since september of 2022 last week. you can see not a lot of movement when it comes to the u.s. futures session, but we are watching also where the dollar is headed because it topped its 200-day moving average earlier in the week but ended today's new york session a little bit mixed. still ahead, we flesh out china's growth

>> we are getting breaking news

out of japan. we are getting inflation numbers for the month of december. core inflation excluding fresh food experienced a growth of 4.2% year on year in line with estimates but easing from the previous month. the year on year national headline number is coming in at 2.6% for the month of december, slightly above economist expectations of 2.5%. core cpi excludes fresh food and energy and it is growth of 3.7%, which is in line with expectations and easing from the previous month. suffice it to say that when it comes to the core number, the core inflation number in japan, we are seeing japan's assessment that upward price pressures would be short-lived are actually coming to fruition. we saw the cpi number weakening in the previous month. it is weakening even more in the month of december, and we had seen these expectations, given the tokyo inflation, which is a

leading indicator for the national trend, already weakened last month to the slowest pace in more than a year. this will be taken into account at next week's boj decision, and we will be waiting for any hints about policy with governor because what would -- governor kazuo ueda. i will securities as it is ramping up capabilities in japanese fixed income as it gets ready for a long-awaited shift in monetary policy. the brokerage's deputy president told us investors in japan and overseas are paying more attention to rates as the boj gets closer to tightening policy. >> i think we have been preparing for a while not just ourselves because of higher interest rates, and the boj has changed their policy on yield curve. we have seen more people interested with interest rates. we will be allocating resources.

>> talk to us about the resources you are allocating. quantify that for us. >> i'm not from fixed income, so i can't -- >> give us a sense. >> i would think not just in japan, but overseas people, that our investors would be looking, and that would be increased resources because it has been a dormant market for so long. >> the stock market is also doing really well. there's a lot of enthusiasm, expectations and so on. is there a sense that daiwa can overtake nomura? >> the difference in market cap is really shrinking. we are conscious -- i think they are conscious as well, but we are doing quite well. >> the big bet for you is china, against the odds and despite the fact that sentiment has been pretty negative. is it time to reassess your involvement in china, your bet in china given that the recent

data remains week? >> that is correct. we are very cautious, but we also know that there is potential in china just because of its size and that it is close and all the japanese businesses that are in china, so we are cautious but not pessimistic about it. >> what's a red line? >> i think the red line be if a lot of -- they have been liberalizing the market for long so if they stop that and redo a lot of the things that they have been doing to open markets, that would be when we think that we are not welcome and that is when we would rethink, but we do not see that happening now. >> the finance ministers that that they are reopening and banks would benefit from entering the market.

>> there are a lot of things to learn from the u.s., japan, and europe. i think just looking at what they have been doing, it has not been as close as some other industries. >> the messaging out of davos as well has been the global economy is slowing. it is sluggish. how is it impacting your plans for the next 12 to 24 months? >> unlike for japan, which is looking at a normalization of our economy, with interest rates , and corporate's are doing quite well in terms of financial performance, we are not that pessimistic about where we are going right now. >> of course, we have been watching china's economy as well.

beijing saying is economy group 5.2% last year, but some analysts are questioning the accuracy of beijing's investment data. our next guest says any true acceleration of growth will require either a major global outside surprise or more active government policy. always great to have you with us. of course, we have seen measures coming from the government, from bond sales, but also from the pboc. how much has been done, and how much can we expect this year? >> there has been a tremendous amount of monetary policies easing. every sector we have surveyed is paying far less than in years prior. the problem is this is akin to pushing on a string. companies are civilly not interested in going out and borrowing at the levels they used to because the overall economic growth or the recovery has been so disappointing. you may get continued policy easing taking place, but that is not going to be the key to a

stronger economic growth year for china. as far as physical is concerned, i think we should prepare for very limited amounts of stimulus taking place. i think the premier has made that clear in his comments the last couple of days. >> does that mean we might not see meaningful pickup in growth in china this year as well? >> i don't think so. i think growth this year will be lower than what we got in 2023. >> we have seen, of course, the manufacturing sector, still seem a bit of resilience. is that the trend this year as well? >> manufacturing actually held up far better than anyone anticipated that it would. it is things like autos and green technology and green energy, areas which are helping buoy that sector. if you get a soft landing out here, that is a very big plus

for the chinese manufacturing sector, and you will need something like that to keep economic growth going because the consumer side, as we saw -- and a lot of that sentiment has dampened consumers that has dampened. consumer spending -- as we saw, a lot of that sentiment has dampened. consumer spending has come down over the year. we are seeing quite a lot of disinflation happening in china. there is outright deflation in places like the property market where prices have absolutely cratered over the course of the last year, but there is a continued disinflation story and for us out here in the west, that is positive. >> could we see more coming from the pboc, especially if you have more advanced economies going in the opposite direction? i know there was a lot of pressure on the pboc given a lot of the banks were tightening. now that we have other major economies starting to cut, will that give the pboc a little bit more leeway, and does it matter,

given that we started this conversation with the fact that people don't want to borrow? >> even if you get some meat cuts, there is room to maneuver. there's no question about it, but i think they are struggling with the rate cut idea. you could see things like mortgage rates come down further. that could stabilize the property market. that happened in 2023. unfortunately as we have seen, sales continue to fall month after month, quarter after quarter. prices, as i said, have cratered. some of that could help stabilize the property market or is one of the key parts or ingredients if you will. >> we have learned about this potential balance sheet recession along the likes of what we saw in japan. could that be the case if we have more business is paying down their own debt? even the government wanting to leverage up, as we have seen them be very careful, not releasing these massive fiscal measures we have been expecting for some time.

>> we continue to see soft and weak demand. that is certainly at risk, the so-called japanification that has been discussed. >> what can we expect in terms of the commodities outlook? we have seen a bit of a rebound when it comes to steel and aluminum. could that potentially be a more positive picture? >> i think so. when you think about industrial activity overall, those were the bright spots in some ways. we have seen steel production and copper production at record levels over the last year. you could see that continuing, not because of the property in the construction sector for the traditional demand drivers, but because of some of the other areas of manufacture, the green technology we talked about and car production we talked about, so there is a positive scenario for continued improvement on the commodities side if that activity holds up on the manufacturing end. >> we continue to talk about

structural challenges for china including a shrinking population as well. what are the biggest challenges for the economy in the next 10 years? quickly aging population, shrinking labor force are absolutely up there. i still believe one of the biggest challenges is the inability of the party to really help the private sector develop and grow. the starvation of sme's when it comes to credit has been a big hundreds. when we talk about the economic growth in china, the healthy growth the party sees will not happen until you have a flourishing sme sector and private sector. the youth unemployment problem, you can massage the numbers all day long, but that's not where they are going until that is corrected. i think they have decided to go back and revise some of the data and we have a new figure out in china. >> the investment confidence you talk about, especially in the business sector, how much have

you seen in terms of the regulatory crackdown? we have not heard any big headlines coming out of china. does that give us a little more confidence that perhaps they are going to lay off from those really random restrictions that were applied to different sectors, if it's tech or education and so many others? >> i think the regulatory crackdown is going to continue to evolve and stay with us. more policy tightening and more regulations are the new norm within china, not less. they are trying to get better in the sense of floating things so that businesses are not caught by surprise and markets are not shocked. methods are evolving in a manner that is more market friendly, but i think tightening the screws is certainly the direction in which things will continue to grow. >> could you have you with us. managing director of china beige book international here with me in the new york studio. we have more to come.

this is bloomberg. ♪

>> the japanese drinks maker says it is adjusting its aligned to cater to a new generation of drinkers who are more help conscious.

>> gen z, that generation started to show less drinking. i don't like it, but that is evident, and we responded to it by putting more resources to ready to drink, and that market is very much growing. by the way, we are number three in the world. plus, we have these skill sets to mix alcohol and flavors. flavors come out of the skill set of the soft drink industry. we have been in this market more than 30 years. this is the market for us. >> talk to me a little bit. when you say they don't drink, they still want premium drinks. his it's just not alcohol because they are more health conscious. when you look at the ready to drink market, is this

alcohol-based or is it a substitute where you feel like you are drinking alcohol, but it is alcohol-for it >> both. second, sweetener is natural, but not sugar. technology is involved. >> trying to understand the perfect mix? again, are margins smaller, compared to what you used to do in even old-age whiskey years ago? >> that's right. 1/3 to maybe half compared to the model, but people by sixpacks. in total, entire aggregate of profits is ok.

plus, we can reduce entire supply chain. >> coming up, japan is preparing for another moon landing mission as they seek to bounce back from a string of space disasters. details are next. this is bloomberg. ♪ avalarahhh ahhh and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie!

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>> welcome back. blackstone's ceo says he is optimistic that animal spirits are returning to markets on hopes the fed will cut interest rates this year. speaking in davos, he told us the pace of private equity investments is picking up at the world's biggest alternative asset manager. >> i think 2024 will be a good year. it started out slower in the sense that interest rates are still pretty high, and the fed will keep them that way. everybody has to earn gas probably until the second half, at some point in their. that will have a little bit of a baffling effect. the stock market had such a run in the fourth quarter that you

would not expect that to really take off and go, and the economy was slowing a bit. that's normal with high interest rates, so on the others are to the ledger, the expectation that interest rates are going down is creating animal spirits again. we did six private equity investments in six weeks at the end of the year after a slow year. we are much busier now. in a way, it represents some type of capitulation for people who are holding back for two years, so we are optimistic for this year. >> are you worried that if we

don't get the cuts promised by the fed -- because a lot of the good news is already priced in markets -- that people will start winning on the deal is a little bit? for the moment, you are optimistic. is the second half of the year a little bit trickier? >> we will get the cuts because the way we measure inflation at lack stone, we are already around the 2%. the fact that the fed is using different numbers for rent and real estate, we think they are looking at 6% inflation in rent and residential real estate, and we are the largest over residential real estate. we think it is 021 -- zero to one, let's bet on us. if you correct for that difference between what is really going on, they are saying it is 6.2%, you get around to

percent, so i'm quite confident that they will be lowering rates. >> blackstone ceo steve schwarzman in davos. let's take a look at how we are trading. it does look like we will end on a high note. really that tailwind carried through from wall street, in particular the nasdaq 100 closing at a fresh record high. we are looking at suppliers to fuel this tech rally. australian suppliers snapping five consecutive days of losses that we have seen. we are also seeing quite a bit of focus when it comes to these apple supplier names. we saw apple gaining on the back of that analyst upgraded, and chipmakers will be in focus as we get into the opening, japan as well and south korea. >> another story we are following, a spacex rocket was launched earlier carrying the

first all-european crew to the international space station. the team is expected to dock at the orbiting research laboratory 250 miles above earth on friday. the blast off is a landmark mission for europe as its space industry struggles to get off the ground due to delays. japan's space agency is attempting to shake off its own series of recent setbacks in its latest attempt to land a probe on the moon on saturday. how important is this mission for japan's national space program? >> this is a big moment for japan and all space-traveling nations, i would argue. japan seeks to join the countries that have reached the moon's surface. jackson -- jaxsa's director says

this lender, which is supposed to land in 15 hours and 20 minutes, would greatly reduce the target area for any lender -- lunar landing area from multiple kilometers to less than 100 meters. in any respect, not just for japan, but for expeditions to the moon and research there, this will greatly improve efficiency and their ability to conduct conference of research on the moon's surface. >> what else are we expecting for 2024? >> 2024 is shaping up to be a big year for japan's national space program and the private sector as well. just to remind a little bit, 2023 was a rough year. it started in october 2022 when one of the smaller rockets exploded as it was trying to launch and in february when its next generation rocket failed to

take off. in march again it failed. in april, almost reached the lunar surface but just fell short before the company lost contact with the lender. this saturday, we are going to see slim attempt to land on the moon. later this month -- later next month, that is, we will see the third attempt to launch the h3 rocket. for japan's national space program, this is shaping up to be a pivotal year. >> take a look at some of the stocks we are watching when trade begins in korea and japan shortly. we are about six minutes away from the start of cash trading. chip stocks in focus, creating some optimism we will see that broad lift going into expectations of potentially a stronger improvement and recovery for chipmakers this year.

also watching daiwa securities, preparing for the boj's long-awaited policy shift. >> coming up in the next hour, we learn why ag australia sees rate cuts sooner than expected. plus, the boj edging closer to its first interest rate hike since 2007 when i spotlighted next week board meeting. we get more analysis on that with j.p. morgan securities. francine lacqua hosts panic on the global economic outlook. we will hear from singapore's president among others. this is bloomberg. ♪

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shery: this is daybreak: asia. we are coming down to the major market opens. gains for wall street. we were looking at apple. nasdaq 100 reached a record high. treasuries were mixed. more resilient job numbers. haidi: we are still going back and forth as to the timing and frequency as to expectations from the rate cuts. that is driving sentiment across markets. shery: what that means will be a key question as we head toward the boj rate decision next week as well. cpi numbers today showing again that slow down. expectations that the boj was right that input costs rising would not last that long. inflation cooling for a second month. consumer prices rising 2.3% from a year ago. take a look at the open right

now. nikkei gaining more than 1% after three sessions of losses this week already. the japanese yen not doing much after we saw significant weakness already this week. falling to the weakest level since november. jgb's under pressure. another week auction of sovereign debt. japan not doing much at the moment. we don't have clear direction when it comes to treasuries either. take a look at what the kospi is doing right now. we saw gains in the previous session. right now, upside of more than 1%. the korean won continues to be slightly more positive against the u.s. dollar. it outperformed all other asian peers this week, given that south korea's authority came out saying that the currency weakness was some what excessive.

japan cpi and government editor joins us now from tokyo. great to have you with us. what do you make of the cpi numbers? was the boj correct that these price pressures would fade? >> yeah. i think these results today fall in line with boj expectations and forecasts. i think they keep us on track for the first rate hike since 2007 in japan in the first half of the year. but it's not going to be next week. we've had a survey of over 50 economists you'll have seen. not one of them thinks that the boj is going to move next week. we've had a bad start to the year with an earthquake that claimed the lives of 200 people. i think this idea that there needs to be some kind of rush to raise rates is mistaken.

i think they can take their time and look at more data before reaching a decision. you might ask, what are they waiting for? we mentioned this many times before. it's the wage data from the annual negotiations. i think that's going to be a key metric among others, just to check that we do have arising wages that will support a longer-lasting form of inflation. this is actually positive for the economy. remember, japan has been seeking inflation unlike other countries for decades now as a positive way of fueling growth. shery: waiting for that cycle to really take hold. no major changes expected next week. in terms of the post decision communications signaling, what are you looking out for?

paul: there's going to be very intense scrutiny of the comments from the press conference after the decision on tuesday. i think his description of, are they getting closer to achieving the target, there will be a lot of interest in how he describes that. we are getting a little bit closer. maybe we will something -- see something firmer in his comments there. that could be one of the biggest years that we are getting much closer to that first rate hike in decades. shery: some market watchers say the topics has been showing signs of overheating. that relative strength index reaching the highest in dismay.

strategists telling bloomberg that the market has risen too far. investors should chart -- start taking profits. our next guest says he recommends buying any dips. 26 mark -- tony sycamore joins us now. this time is different. that's the prevailing narrative for the japan bulls. do you subscribe to that? tony: i do. the rally has been built on solid foundation. up over 6%. it's not great levels to be adding to long positions. we have to think about where it can go from here. you look back to that 1989 hi and we are talking about 38,000. we are not that far away. haidi: is that a first or second-half story? tony: first half. after this strong start to the year, it may continue to the end

of the japanese financial year potentially. then i would be expecting to see corrective price action like we saw at the end of last year. three to four months. and then it pushes up towards that 38,000 which would be very exciting. haidi: you can be selective anywhere, right? what are the broader things you are liking? tony: i still think china is to be treated with caution. haidi: that's the most bullish view we've gotten. tony: it is something we've steered clear of. there tail risks have receded. you look at the sequential growth data earlier this week, dropping from 1.5% down to 1%. the property market remains a problematic situation. we did see housing prices drop at the fastest rate since 2015. the stimulus measures just aren't having the desired

effect. they have supported the downside risks. where that upside comes from, that sustainable rebound, it's not clear yet. that's why investors are going to remain cautious at this point in time. it may extend for a week or two. until we see broader stimulus measures, you have to treat those rallies as short recovery rallies. haidi: for australia, do the jobs numbers surprise? it felt like we were back to the good old days with labor market data being so surprising. does that change your view of where the rba goes from here? tony: it does. for me, that was a week number. you look at the number of jobs lost, the participation rate dropping which is a sign of workers becoming discouraged. i know there was a holiday element and a cyclone. that tropical cyclone didn't

play a part. it's higher than where the r.b.i. forecasted. i expect that will continue higher. i think where there is opportunities for investors in the right spaces, under two rate cuts here in australia in 2024. if the inflation data on the 31st of january shows what we've been seeing in the monthly cpi indicator combined with the weaker jobs data which we saw, we could start to see the rates market move towards three rate cuts in 2024. the rba looks underpriced at this point in time. haidi: you prefer looking at the rates market at the moment? tony: it drives the equity market. it's been as fed speakers has been less dovish. the type of news which we saw overnight coming out. upgrades for apple.

it's making a tricky start to 2024. in that respect, i was happy with the way u.s. equities rallied into the back end of last year and pushing up to new highs. at this point in time, you could be a little bit cautious. stocks aren't running away. we need to see how this plays out between rate cut expectations and when the first rate cut comes. that is still important. haidi: do you want any kind of insurance against geopolitical risk this year? tony: i do. probably the obvious place to find that is crude oil. i think crude oil is down towards the lower end of the range, the low 70's. that seems to be the place to take that geopolitical insurance. gold is an interesting one. we've seen that fall significantly, undercut by higher u.s. yields and stronger dollar over the first three weeks of 2024. gold potentially could come back down towards 1950 which i would

start to look at gold at that level. right here, not at this point in time. haidi: the dollar has been an interesting one. even with the fed easing expectations, you are seeing the risk flows going to u.s. dollar. tony: taking some profit on that trade. there was a lot of dollar selling which came about once the fed confirmed that dovish pivot. the short covering rally has also been supported by higher bond yields. if you look at the price action yesterday, the euro sitting on that 200 day moving average. the aussie has been supported down at 65 over the past six months. that was the low yesterday and it rebounded this morning. if equities were to continue on, you have a nice place to lean against the dollar -- aussie dollar. haidi: we talked about geopolitics. how closely are you watching the u.s. elections? tony: absolutely.

after the iowa vote this week, we have a very interesting running to the u.s. election. it will be interesting in terms of the geopolitical policies, tariffs, that type of thing. haidi: trump trade wars. tony: that was a huge driver of markets. it really was. if we see tariffs, there's a clear geopolitical risks there in terms of how things unfold with regards to europe, taiwan. all that type of thing will present risks to market. a continuation of the volatility which we've seen in the first three weeks of 2024. haidi: it's only been three weeks. tony: it seems a lot longer. i do agree. haidi: let's take a look at how we are tracking at the moment. a bit of the rebound for a sx. five sessions of losses. trading at the lows of early december. up by want -- 1.2%.

across the board, we are setting up for a rally into the end of the week. this is a picture when it comes to the aussie dollar. holding pretty steady. a little bit of volatility when it comes to trading in the greenback and the overnight session. the unexpected or underwhelming reaction that we've seen in oil. under $74 per barrel when it comes to trading and wti. we've been near the highest close of the year on these incrementally ratcheting up of middle east tensions there. that headline number hasn't moved very much. i should point out when it comes to futures curve, we've seen a bit more when it comes to that price action there. we've been watching treasuries, given the data that continues to drive the conversation over whether the fed will go from there. surprising robustness when it comes to the initial jobless claims and other aspects of the

labor market data play as well. still ahead, j.p. morgan security chief strategist will be joining us to tell us about the political scandal. a cause for investor concern? before that, the latest on the midwest conflict. calls by the u.s.. we get that update, next. this is bloomberg. ♪

shery: top stories we are following this hour. the u.s. congress passed a temporary spending bill to avert a partial u.s. government shutdown this weekend. the legislation will be sent to the white house where president biden plans to sign it. the package is meant to give lawmakers time to complete negotiations on annual funding for the fiscal year that began in october. israel has vowed to control security in the gaza strip for the foreseeable future after its war with hamas ends. is really prime minister benjamin netanyahu says this will be a mandatory condition and he would accept a gaza civil authority. the u.s. says a lasting peace wouldn't be possible without an

eventual state for palestinians. president biden says strikes against militants in yemen will continue even if they have not halted attacks in the red sea. u.s. forces launched a barrage of anti-shift missiles. the houthis say they are taking concrete steps to improve their military capabilities. the chaos in the red sea starting to disrupt shipments of produce from coffee to fruit. it's also threatening to hold a slowdown in global food inflation. su keenan joins us with the latest. how much could this hurt food cargo? su: there has been a limited effect so far. when you consider these costly diversions around the tip of africa for cargoes that may involve produce such as fruit, this involves spoilage. the actual cargo could become

unsellable. analysts point out that it's a possibility when you consider how fragile the food supply chain could be that is of concern to the industry because of disruptions. they could stall the slump in food commodity costs that have just started to make grocery bills cheaper. that concern is spooking the shipping industry. shipping rates have soared since the tax -- attacks on the red sea cargo ships late last year. reporting indicates that grain is now being diverted from the suez canal. livestock carriers bound for the middle east have also had to change course. again, these are cargoes that can be impacted by the delays. italian exporters are worried that going around africa will hurt freshness and and cost for fruits like apples. there's also concerns about any seafood exports. european exports of products

like dairy and wine are also of concern. those in the shipping industry say every now and then, they have delays. but they've seen nothing like this, what's going on in the red sea. shery: that has led to volatility in oil prices. su: it is certainly holding. 74 is where we got in the new york session. that's the highest we've seen so far this year. again, slight dip in asia trading. we are holding close to where we closed in new york trading. a number of factors. offsetting what is the bearish concern about oversupply in oil right now. that is what is going on in the middle east. this increased conflict, the u.s. and u.k. initiating their fifth attack on yemen for the houthis as attacks in the red sea continue. a very bullish oil industry

report which saw a decline in oil supplies for the u.s., taking us to the lowest level since october. traders are saying, we are searching for direction here. west texas prices range bound but often swinging widely day today. we are seeing those swings in brent crude prices. additionally in the u.s., we have the cold weather factor. cold weather not only on the east coast in new york but heavy snow in the northwest. and then you get to the gulf coast area which is where the bulk of the refineries are. that's an area of milder weather. texas for instance getting below freezing earlier this week. what that is doing is cutting about 15% of refinery output. and then we have north dakota which lost earlier in the week about half of its output of oil production. the weather continued -- considered to be temporary.

shery: su keenan with the latest on the red sea food cargo and oil prices. you can get around up of all of the stories that we've been talking about on your addition of daybreak today. bloomberg subscribers, you can customize your settings so you only get the news on the industries and assets that you care about. this is bloomberg. ♪ ♪ (upbeat music) ♪ ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) -awww. -awww. -awww. -nope. ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall.

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hello, brent. hi? ahhhhhh if you had to choose, would you watch paint dry or compare benefits plans? compare benefits every time. come on, you know how complicated benefits can be. well, i run payroll with gusto. they make it easier to find benefits like medical, dental, and vision for my whole team. man, i think i'm going to need new glasses. don't worry. i've got you covered. yes! choose benefits without the mess. that's working with gusto. shery: shares in chinese renewables companies jumped in the third sash -- thursday session with investors searching for growth drivers. a solar supplier was among the gainers. the chairman spoke to us in dabo's about the sectors long return outlook.

>> [speaking another language] it's hard to assess the exact number but there will be a certain amount of consolidation in the industry. there are too many homogenous participants nowadays. in this case, we think only innovative companies can help the industry enter this new cycle. it's unrealistic to rely on the existing production capacity and existing products to make the company obtain relatively high profits. in the consolidation process, only companies with stable and healthy operations can push forward consolidation in the industry. i believe these will happen this year to a certain extent. >> given expectations of consolidation, would you be interested in acquiring some of these companies? >> we don't have anything yet. >> we know that there are trade barriers in the u.s. and european markets. how is the company navigating that? >> we've built a factory in the

u.s. with our partner and we've displayed the first modules at the exhibition yesterday. so we believe that the layout of these facilities that we've adopted is in line with the current policy requirements of the u.s. government. >> how prepared are you for a trump presidency? elections are this year. he's doing pretty well. >> first of all, i think that climate change is the responsibility every citizen of the earth is facing. even trump is now running for the u.s. presidency. no matter which party is elected, the trend of developing clean energy in the united states will not change. we have a firm confidence in developing clean energy in the united states. >> trump was the one that pulled the u.s. out of the paris agreement. i'm wondering how prepared you are for the challenges and risks under his presidency. >> during the last trump

presidency, clean energy in the u.s. grew every year. therefore, we believe that this time, no matter who is elected president, clean energy in the u.s. will continue to grow. the united states builds a foundation of clean energy and the american people are willing to contribute globally. we believe in this. for us, we don't have any special arrangements for this. we think that campaigning is one thing and the country is developing an energy market as another. it is two different matters. haidi: the chairman of -- green energy joins us there. let's take a look at the corporate headlines we are following this hour. jp morgan raised jamie dimon's pay after he reported the highest profit in the history of american banking. his pay is up 4.3% from 2022 with the rest coming in as

performance based incentive. jp morgan revenue last year was short of $50 billion. macy's is laying off 3.5% of its workforce ahead of the departure of long-term ceo jeff janet. the cuts include 2350 employees, mostly in corporate positions, and will close five stores. macy's struggle to compete as consumer preference shifts away from department showers -- stores to online retailers. walmart giving its store managers a raise in a bid to attacked workers. the average will now jump to $128,000 and store profits will play a bigger role in annual bonuses. retailers have struggled with labor retention as workers face unruly customers and a rise in store theft. coca-cola ceo james quincy says the company's wide range of products will protect its business if new weight loss drugs cause changes in consumption habits.

quincy says in almost every category, the maker of sodas has products without calories and sugar. >> when you break down the data, i don't think it's a big thing for us. at the end of the day if you want to make it super simple, we sell a whole range of beverages. at the end of the day, you can eat less calories if you want to lose weight. you can't have less liquid. shery: coming up -- haidi: coming up, japan cpi numbers. what this means for markets in the rally going forward. this is bloomberg. ♪ (aidyl) hi, i'm aidyl, and i lost 90 pounds on golo. i struggled with weight loss and weight gain my entire life. with all the yo-yo dieting i did in the past, i would lose 20, 30, 50 pounds just to gain them over and over again.

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>> deflation is almost over.

24 is the year to get rid of inertia and move toward the economy with moderate inflation. backing up by the constant increase of ridges. shery: the centauri president and ceo with his outlook for the japanese economy. take a look at how japanese asset are trending at the moment. the nikkei seeing strong upside of 1.5%. taking it to the highest level since february of 1990. while we have the likes of tech communication services and real estate meeting the gains. utilities and the red right now. the japanese yen at the moment strengthening a little bit. after a lot of weakness, pass that 148 level. we are back below that against the u.s. dollar. the 10 year yield holding steady. we have seen a lot of optimism about the japanese market. take a listen.

>> when you talk about five or 10 years and you think about the amount of aggregation and transparency of wealth outside the u.s., particularly in asia, i've been going a lot to japan, we've doubled down on japan. it's one example of the kind of place where we can do it strattera business. shery: our next guest is keeping an upper rate -- overweight sense on equities. he joins us from our tokyo studio. great to have you with us. i understand why we have sub -- such optimism about japan. will this continue even if the boj tweaks policy and we see a stronger yen? rie: thank you for having me. i think this japan equity will likely be in a short term. the rally of japan equities year to date.

one is tailwind from global macro environments. the depreciation. demand for japan exporters. higher yields benefiting value stocks as well. second is higher expectations for structural change japan including more corporate action in response to tokyo stock exchange initiatives and more inflow from individual investors. it's more likely that u.s. economic soft landing would be the more evidence we see. in japan, structural changes and more inflow from japanese individual investors, the more likely that the rally of japan stocks will sustain. shery: what centers do you like? rie: year to date, we saw exporters did well. exporters did well.

thanks to that u.s. performance. going forward, i believe value stocks will continue to outperform because of this corporate governance seen. especially by midyear when the corporate's will announce the full-year results. in june, it's a season of annual shareholders meeting. until then, i believe many japan corporate initiatives to include their alloy in the initiatives. haidi: what are you expecting for the domestic consumption sector? we are seeing inflationary pressures at a time when wages are not keeping up. real wages remain under pressure. rie: yes. actually, consumption sector stocks.

we call it the timing of this idea will follow in the first half of the year. so not yet. if you look at the consumption data, the latest sprint shows that 3% down real wages. the japanese economy is still in a transition from deflation to inflation. so that higher wage hike springs away negotiations in march. we see more science of more corporate management for higher wage hikes in 2024. the wage print, february print or after, would support that consumer sentiment. as a result, consumption. we need to wait another couple

of months. shery: how is corporate sentiment unfolding in japan right now? we usually follows the large manufacturers. what about the smaller companies there? rie: yes. actually, the largest change in december was announced in mid-december is good business sentiment pickup. it's not only within large corporate's but it prevailed to the s&e as well. so good corporate sentiment is prevailing throughout japanese corporate. shery: you mentioned earlier as well that we have seen more interest from individual investors when it comes to really getting into the markets. we've also seen the government trying to encourage this sort of investment as well. are we going to see more participation by retail investors in japan? what does that mean for where

the markets go from here? rie: yes. this would be a very large catalyst for japan equities or other assets in the world. because consider that japan individually holds 2000 yen wealth and more than half of it held by cash, bank deposit which gets 0%. our government started a new initiative called japan tax bracket for individual investors. that could be a trigger point, in addition to the rating increase we've seen in the past half year. i mean, depending on this, if individuals shift their cash in their bank account to 10% of their bank account, that could

bring ¥10 trillion inflow in japan equities. it's not only a japan equities story. but related to cross assets across the world. shery: the japanese public has also been pretty disappointed on the performance of the government. the cabinet approval rating plunging to new lows. we've seen a lot of uncertainty with that. the scandal deepening in the government. is that just political noise or will it have implications for confidence in japan? rie: yes. there was concern, especially towards the year-end last year. we saw a sign of the government approval ratio bottoming out. this is a survey by kyoto. it shows that improvement in january. so we need to see the other major survey this month.

government assistance for the earthquake helps the ratio of cabinets. also if we see higher wage hikes in february and march as a result of the negotiation, that would be a strong supporting factor for the cabinet. shery: great to have you with us. listening to those comments on the bullish outlook for the japanese market. with the neck a at that 1990 hi today. haidi: so much of this comes down to what central banks do. we are watching ahead of the boj next week. no change expected but the communication will be scrutinized. the governor of india central banks as rate cuts are not yet on the horizon for that economy. no further evidence of inflation has settled. also added to the course of policy makers warning that investors are getting ahead of

themselves with bets on monetary easing. >> financial markets all over the world have started talking about rate cuts. the central banks are nowhere near it, as to their stated statements which are coming out from various central banks. so far as india is concerned. inflation has moderated from the peak of 7.8%, which we saw immediately after the onset of the war. inflation has steadily moderated. it has come within our target range of 2.6%. but our target being 4%, we are still moving towards 4%. so we have to reach 4%. until we reach 4% on a sustainable or durable basis, i think it will be too premature to talk about rate cuts in the context of india. >> you will get to 4% before

2025, which means you will get there this year. could we see rate cuts in the second half? >> is today another form. next year is our expectation of average inflation, average for the whole year, the average headline inflation is expected to be 4.5%. with several ups and downs. unless we see a clear evidence -- unless we reach 4% unless we see clear evidence that it's going to sustain at that level, it will be really premature to talk about rate cuts. at the moment as i speak to you, the topic of rate cuts, that aspect is not on our table. it's not even under discussion. our focus is now to remain actively disinflationary, to bring the inflation to 4%.

haidi: the rba governor speaking with bloomberg's haslinda almond in davos. we will have more conversations from the world economic forum. president look law hosting the panel. we hear from singapore's president, the ecb, the imf, david rubenstein and saudi arabia's finance minister. this is bloomberg. ♪

shery: msci asia gaining. being led higher by tech companies, not surprising given that we had the positive outlook from tsmc that led to chipmakers gaining ground. the nasdaq 100 finishing at a record high with apple also getting an analyst upgrade. haidi: as we continue to track the latest when it comes to china's economic slowdown, chinese travelers biggest spenders on overseas trips but they've been staying close to home a year after the scrapping of stringent covid curbs. that pullback has come at a massive cost to the global tourism industry. joining us now is danny lee.

what have you seen in your research and investigations in terms of the impact of this pullback of the once big spending chinese tourist? danny: yeah. we've been able to crunch the numbers. as you said, chinese tourists were the biggest spenders on overseas travel. right now, 60% of flights, 60% of pre-covid levels in terms of outbound travel, in terms of international flights. we saw 171 million flights flown by chinese tourists. that amounts to $248 billion. that accounts for 14% of all global foreign travel spending. now what we have seen is a bit of a light out here. down to 129 billion. that's been lost in terms of all of that chinese travel spending. it hasn't taken place because of

the huge loss of international flights connecting china to the rest of the world. when you compare that to the u.k., the u.s., germany, france, all seeing international travel spend recover, there's a huge gulf between where china was and where it is now. you could expect things to recover in time. but that big gap has a huge impact when it comes to countries who are so dependent on chinese travel and chinese tourism. haidi: which areas were the worst affected and why? danny: we've seen the likes of taiwan for example. that's been politically driven. also the impact from covid when flights were pretty much severed. one of the fascinating ones that interested me was india. india and china are two of the biggest air travel markets. they have no nonstop connect flights between them. so that has no connections left.

you see the likes of the u.s. and canada where flights are down between themselves in china. one of the really interesting pieces that we found in our research was the middle east. the middle east has seen its connections with china recover to basically brief covid levels. there is the potential for that to grow even further. that has been driven by its friendliness with china over the years. across what china sees as a strategically important part of one of its policy, the belt and road initiative -- belt and road initiative. any country that has benefited from chinese investment and policymaking is seeing a big increase and uptick in flights. ultimately, it's easier for them to restart flights with china. shery: danny lee. you can get more on that piece on the bloomberg terminal. despite the pessimism over china

travel, one of the country's biggest names in tourism now saying that the sluggish economy and slumping markets are not deterring consumers from getting back to traveling. we spoke at davos with the trip.com group ceo about the trend she is seeing in the domestic and international markets. >> it's doing very well. we have four segments. the first one is domestic travel. not only will you recover fully to 2019, we far exceeded 2019 by more than 50%. the second part is outbound travel which is to bring chinese travelers from china to the rest of the world. we look at both demand-side as well as the supply-side. the demand-side already exceeded 2019 levels. on the supply side, we still have two major hurdles. the first one is the visa applications taking too long, especially to europe and the

united states. the second hurdle is the flight capacity and shortage of labor. >> i'm curious whether chinese consumers want to travel into europe in the u.s. in the same kind of numbers we saw in 2019. has something shifted as international relations have frayed? >> not really. chinese people were taught to travel by confucius. he teaches that it's better to travel than to read 10,000 bucks. parents always want to use travel as an mean to educate their children. you are not only learning theories but you are working with people along the way. >> i'm curious to how this pairs with the official rhetoric that demand is not there.

where is the disconnect and all the demand that you are seeing on your site and what we are hearing about from all the other indicators? >> because china is very big, we need to look at different segments. certain segments have pressure. for example, real estate might have some pressure. however, if people are not buying houses, their disposable income is increasing. so the segments that are doing well, travel is doing well, entertainment is doing well. for example, concerts, music festivals, opera. these are doing well. wellness products are doing very well. haidi: the trip.com ceo there in davos. catch up with some of those past interviews as conversations from davos on our interaction -- with

our bloomberg functions. become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. this is bloomberg. ♪

shery: global passing funds are

putting strain on the world's worst performing stock market. bloomberg's cheryl yang has more. this is amplifying the downside. charlotte: this is adding to the selling pressure we've been seeing. the latest from the morgan stanley team, managers of those benchmark tracking funds have sold $300 million worth of shares in mainland and hong kong. definitely adding to the selling pressure. the market knows about that. the sales we were seeing this week, some of that is triggered by the risk management of structured products. in the benchmark -- if the benchmark continues falling like

this, it's going to trigger more managers to risk management. that adds to more selling pressures as well and her sentiment. shery: is an international team coming in? charlotte: yes. for the onshore, a few of the closely watched etf's, we've seen a stellar spike in the turnover yesterday. that coincides with the csi 300 erasing losses as much as 1.8%. we are -- state funds are behind this. more commonly known as the national team. we have seen that in previous sessions. when they come into rescue the market and help stabilize the losses. that is usually more short-term. more short-term effect. that's enough of a turnaround

for the fundamentals in terms of sentiment. haidi: it's hard to see longevity when it comes to sentiment for china. charlotte yang there with the latest. take a look at what we are watching once markets open and hong kong and across mainland china. tsmc and his peers will be in focus on the chipmaking giant robust forecast for the industry. we will be watching some of the other related stocks in the markets as well. oil producer tensions remaining high in the red sea. futures curve starting to ratchet up a bit as well. daybreak australia will be back next week with the new 7:00 a.m. hong kong time slot. you can watch balance live from washington. breaking down the biggest political news headlines and what we know is a pivotal election year with the countdown to november's presidential elections.

it will feature the best of bloomberg's longform programming. shery: i will be on special assignment after today's show. you will have fun anchoring with annabelle droulers in the meantime. i will be back with you in the second quarter. more exciting developments in the reunion of the dynamic duo. haidi: cannot wait for that. shery: our markets coverage continues as we look ahead to the start of trade. standby for bloomberg markets china open. this is bloomberg. ♪

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