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annabelle: well today break australia. i'm annabelle droulers. we are counting down to asia's major market open. paul: i'm paul allen in sydney. asian stocks are facing headwinds after wall street's worst fed day in almost a year with big tech leading the rosters and jay powell hosing down hopes of interest rates rising next month. >> i do not think it is likely the company will identify march as the time to do that. it remains to be seen. paul: qualcomm falling after the day as the top supplier of smartphone processes warns inventory remains bloated. boeing earnings beat expectations and the ceo dave calhoun publicly admits

responsibility for the alaska air panel blowout. let's look at how we are tracking in australia. we have a staggered open with modest declines. we had a record high on the asx 200. it will be short-lived. we can think jay powell and the fed for that. we are backing off those highs as we speak. yields falling across the curve in the bond space. the yield on the aussie tenure now 3.9566. not a tremendous surprise. we saw u.s. equities falling off the back of the fed press conference as well. the aussie dollar 65 point five cents. new zealand trading for a while. no huge surprise. stocks off by one third of 1%. futures for the nikkei also negative. futures out of chicago modestly positive. we have a much stronger yen as well. 14682 there.

annabelle: it is all about the fed. if the stock bulls have expected any rate cut by march it seemed some cold water was poured on that. futures are coming online here. some very small gains so far. in context, the moves of the prior session. the s&p 500 dropped 1.6%, the most we have seen sub -- since september and the worst day for u.s. stocks on a fed day since march of last year. a lot of the losses feed through the tech space. you see that playing out and the impact of earnings coming through qualcomm. one of the ones reporting after the bell. the daughter little changed. wti coming online fairly flat so far. jay powell is someone that seems to want to keep his options open. this is something he wants to see before rushing to cut rates. chair powell: we want to see

more good data. it is not that we are looking for better data. we are looking for a continuation of good data. an example is the six months of good inflation data. is that sending us a true signal that we are in fact on a path, a sustainable path, to 2% inflation? annabelle: let's get more on the fed decision with our next guest, thomas honecker, a former kansas city fed president and now a distinguished fellow at the carter center. did anything stand out to you from today's meeting as a surprise or from the press conference? thomas: the only surprised to me -- surprise to me was markets seemed surprised. to me it has been clear they would not raise rates today and not be in a rush to do it in march.

number one, the u.s. economy is growing well. even above trend the last half year. inflation is coming down. year-over-year basis it is well over 2%. that's what they are looking at. the labor market in the u.s. is still strong. it is moderating. at three point 7% unemployment there is not a big expectation for an increase in unemployment on this friday's job numbers. they will hold course now. it seems like real interest rates are going up. look at the 10 year. and a lot of pricing is made off the 10 year in the u.s.. it's 4%. that's not a particularly high real interest rate. when you think about the inflation around that, there is no real reason why the fed would be in a hurry to cut rates at

this time. annabelle: the u.s. economy has shown so much strength. has that taken you by surprise given we still have rates at elevated levels of historically speaking? thomas: it is a matter of what you are talking about. which history you are talking about. the world got used to zero interest rates, 1% interest rates, 2% interest rates. in another period where we had a stronger economy growing steadily, interest rates, nominal interest rates and the fed funds rate at 4.5%-5% were not unusual. we are at 5.5%. real rates are maybe. that is not something that i think that is particularly

aggressively tight. in the united states we have a very stimulated fiscal policy. through the pandemic and afterwards. it is being backed off slightly. paul: 37%, we have a. a chart on the bloomberg that illustrates this. would you say with any degree of confidence that may is when we will see easing? >> the answer is it depends. i think there is better odds

because the economy is slowing. inflation is coming down. if that continues to may. loans are under pressure given these more recent higher interest rates. if the banking industry gets into any kind of a downturn, it will put more pressure on the fed to lower rates at least by march. i mean, at least by me, if -- may if that were to happen. paul: do you have concerns about the amount of debt the u.s. government is carrying? is there risk around that? thomas: there is real risk around that. united states has to fund about $500 billion of new debt every quarter. it has to refinance debt the fed is not divine because it is in quantitative tightening mode. that takes liquidity out of the

system and puts pressure out there, especially as the government has to fund new debt. the foreign buyers of u.s. debt are tapering off to a degree. the fed is not buying that debt right now. it leaves only the private sector of the united states, banks, and other investors. that means you have to crowd out of the private sector from borrowing. that puts more pressure on rates rising through the first half of the year if the economy continues to do well. that's an issue. the fed knows that. if they are lowering rates now and the pressure comes later they will have additional strong issues about lowering rates and at that point they will need to. if they have already lowered rates as think it will send mixed signals to the market. >> chair powell was cautious

with his language when talking about the avoidance of a hard landing or a recession. would you say with confidence those are avoided and inflation is defeated? thomas: i would not say that. we have a regional banking system and a leveraged economic system in the united states. something could go wrong easy with rates and loss of confidence. they have to work their way through this and that is what they are doing, carefully, cautiously. hopefully, they get through this by the end of this year or next year. then they might be able to declare victory, not now. that would be way premature. annabelle: there has been debate as to whether the last mile of disinflation is more arduous than the rest. where you stand on that? thomas: i think it is. a lot of the inflation taken out of the u.s. and world economy has been the cause of supply

disruptions have been addressed and we are in better shape on the supply side. now you have basically primarily demand driven inflation that continues. we have strong wage gains in the u.s.. we still have inflation in services particularly. that might also increase in goods. there's a lot of inflationary pressure on the sidelines now. if the fed were to ease too soon those pressures would reemerge i think fairly quickly. the fed realizes that. that is why i am saying they have to be cautious with how quickly they know those. >> -- bell bob -- annabelle: that is thomas koenig, thank you for your time. the hong kong monetary authority upheld their base rate at 5.75%. this authority follows the fed

in lockstep because of local hong kong dollar is pegged to the greenback here. that hkma holding its base rate at 5.7 5%. we have seen borrowing costs in the city surging over the last couple years. it is really putting pressure on the local economy particularly when you consider the differences in china. paul: indeed. still to come, the amgen china president michael hart gives us the look at the latest china business survey. qualcomm still seeing a shaky recovery from the global chips sector while amd talks ai potential. the latest signals from big u.s. tech earnings are next. this is bloomberg.

♪ paul: qualcomm shares are down. the company says some customers are still working through the collapse of chip inventory. the warning overshadowed an otherwise solid earnings report. a bloomberg intelligence says it could suggest the start of a turnaround in soft more their software demand. senior consumer analyst joins us

now. what does this mean for the smartphone market? kunjan: qualcomm has better than expected earnings. it leads to a signal that the android market especially in china has begun recovery. even though we aren't out of the woodwork's yet. it is a slow recovery. that's good news from the earnings. l pop -- annabelle: what about the share gains that we saw its major buyers, apple and samsung? kunjan: they extended the licensing contract with apple and the chip contract with samsung. the licensing contract does not bring any increase to the run rate but it extends their contract with apple through march 2027, a very good signal that could imply apple is still

not ready with their chipset and will stay with qualcomm at least for the foreseeable future. on the samsung side it gives some predictability that we can assume a certain chair for qualcomm for at least a few years that qualcomm will still have that majority share in samsung premium devices. paul: what about automotive segments? kunjan: qualcomm, unlike most other auto some companies will have been reporting weakness year. it still came out better. a couple things. the scale for them is still very small compared to a large auto see me chip fire. -- player. as we see newer versions of cars launched whether high tear or

midtier all cars have larger it's a look and content with infotainment and the digitization of the car. that is what qualcomm is playing at. as new car launches continues they will see that increase come in. they have reads they are on track or slightly ahead of track for their $4 million by 2026 auto revenue targets. annabelle: ward were -- what were the weak spots? chips for internet devices have been signaled as one. kunjan: there is nothing unique for qualcomm happening here. this is what we are seeing industry wide. it's all going through a bottom. there's nothing specific. we did not see anything more than feared weakness year. that is sort of what we were expecting. i would have liked to see these contract exchanges giving us more detail as to if there was any price increases or esp

increases coming here. we do not hear that. we would be optimistic if they gave more details. annabelle: if it is nothing qualcomm specific and otherwise you are pretty optimistic on the numbers, why do you think we are seeing the stock a little lower after our so far? kunjan: i thin despite the beat on their earnings people are still not out of the woodwork for the android market. yes, it is some science of life. there is no more big catalyst for the next reporters. the next catalyst will be the launch of the next iphone coming towards their fiscal third quarter. that's too far away. there is no with her catalyst that can drive significant upside to these numbers. so, you see that priced into the stock. annabelle: that was our bloomberg intelligence senior semiconductor at a list kunjan.

amd shares pared losses in new york with optimism about a new ai process is helping investors look at a downbeat forecast. the market is still in the early stages of the huge expansion. >> when i look at the potential for ai, it the single most important -- is the single most important technology innovation over the last 50 years. ai has so much potential to change the way our businesses work. to change our personal productivity. to change the way we do research. a bunch of things. from our standpoint, we see the ai grown to upwards of by 2007 -- 2027. from an amb standpoint in september there was a great coming up already for the amd ai capabilities. it has gone really well. i think our customer interactions are -- our product

qualifications, our ramp up have gone really well. we were able to update some of our numbers this past week. ed: i think a lot of folks focused on that ramp and how it went in the quarter. you exceeded the $400 million you told me about at that event. so it's $3.5 billion of sales this year for mri 300. what is interesting is your ramp relative to what is happening supply-side. i wonder how big of a factor supply will be in matching or beating that number in 2024? lisa: absolutely this is the fastest product ramp in our history. we exceeded numbers in q4 over $400 million. we will grow into q1. we updated our full-year forecast from $2 billion to $3.5 billion. we think that is a customer demand statement. that is customers we have engaged in that have made commitments to us, placed orders

with us. we are planning for a much larger number as it relates to the supply chain. this is what we should do. we always plan for success. my view is it is still very early in the innings for ai accelerators. particularly, for him i --mi300 . it is the opportunity for us to continue to build a major growth driver as we work with top customers on ai plans. paul: that was the amd chair and ceo lisa su speaking to the bloomberg technology cohost ed ludlow. breaking news from the ipo space. amersfoort are giving guidance to this perspective ipo of $13 per share, a bit blessed than the marketed range according to the report. if you have not heard of amer sports you have heard of their products including wilson tennis

rackets, ski boots and arc directs outdoor gear. they are majority owned by a chinese company. the u.s. ipo giving advice or guidance to prospective investors that it is looking at $13 per share. no final decisions have been made. the price could change according to sources. we have plenty more to come on daybreak australia. this is bloomberg.

>> we caused the problems. we understood that. we instituted additional quality control and inspection at boeing about our supplier. we urge to suppliers to strengthen focus on performance and reduce risk in the quality

space. annabelle: that wasn't the boeing ceo dave calhoun speaking during the playmakers earnings call after quality lapses culminated in a midair blowout. boeing fourth-quarter numbers, cash flow revenue also passed expectations. do -- the report to a backseat to the max crisis. in a break from tradition the firm declined to give an earnings forecast. the bloomberg intelligence senior aerospace analyst george ferguson joins us. it wasn't a big downplay of the financial results and shifting to focus on safety instead. george: i think the lack of guidance indicates to me that there will be more focused on driving quality control through their manufacturing process both at boeing and their suppliers. i think not giving guidance is a nod to the idea that it may be they don't get as many airplanes out the door this year as they

were hoping. i hope it means management realizes that if they do not really's stem this quality problem quickly they could lose market share from it. that is definitely not what they want. paul: you say the word quickly. this has not been the only one at a problem boeing has experienced in recent years. how long will it take to put it -- fix the problems and reinsure -- reassure investors and the flying public? >> they are building airplanes right now. they don't have much time. if they want to make sure everything is of highest quality now. we have seen a number of problems either at spirit air systems or boeing on the max jet. they have all been individual anomalies. we have not seen a long trend of problems. just a number of fuselages affected. they only build the airplane. they assemble it in renton.

they are building a second line in everett. but now they assemble it in renton and build most of it in wichita, kansas. there are not a lot of facilities to go examine. i think that means they ought to get it done in short order. i think what they need here is more supervision on the line and more training for employees. again i think they want that in short order because they are building at a 38 rate and you want to make sure everything that goes through the factory is of the highest quality because aerospace demands those tolerances. paul: bloomberg intelligence senior aerospace analyst george ferguson there. coming up find out if japanese stocks have more room to run after a strong

chair powell: i don't think it is likely the committee will reach a level of confidence i the march meeting to identify march as the time to do that but that is to be seen. when you sent me the message asking me about the near term, viewing that as march, i would say that is probably not the most likely case or what we would call the base case. >> the federal fund futures contracts one from pricing in more than 50% profitability of a rate cut in march 2 significant last. that was the big surprise. >> the big story. is it may, is it june? it's not march. they are pushing it back because they don't want to rush into a cutting cycle. the fed has won the battle on inflation. >> the fed thinks march will be too soon for them to see good evidence that inflation is showing good progress departed -- besides the good story we are seeing and also shifting to

services. >> we can expect quantitative tightening probably around the first half of next year -- and this year if inflation continues along the same course for the next few months. they are just not absolutely confident that is what it will be three or four months from now. paul: some guests on the outlook for the fed. jay powell made it clear a march rate cut is unlikely. what a profound impact on markets that had. we saw u.s. markets falling prudently the s&p posted a pretty steep decline after that and yields began declining as well. in australia when we opened we went back pretty swiftly, reversing from the record high we said wednesday. it is currently off to the tune of about 1%. we are seeing markets in new zealand going backwards. the nzx off by about .4%. nikkei futures in the red as well. s&p minis already indicating we

might be in for something of a modest rebound when we get going. japanese stocks have started the year strongly. the benchmark topics -- topics index gaining 7.8% in january. if history is a guide the early performance bodes well for the market for the rest of the year. asia equities reporter joins us now from tokyo to tell us more about this historical correlation. winnie: the correlation shows the strong rally is likely to continue this year. stocks up over 7% in january, the most in about three years. from historical data we see a slightly stronger correlation between early performance of the topix with the rest of the year and data from a foreign investor inflow in january also tend to

show positive correlation with the foreign investors buying for the rest of the year, especially when we think about how foreign investors are actually budgeting or adjusting their portfolio in january for the full year. annabelle: was the rally we saw in january any surprise? did we see any strategists changing their views off of it? winnie: yes, the rally was a surprise for many. we have seen over the past couple days strategists from jp morgan and, just yesterday, from bank of america raise their target price for both the topix and nikkei index citing corporate governance reform and companies adjusting earnings forecast of board because of a week yen likely continue for a while. they said that after their

discussions with clients they are seeing more clients in china saying they are aggressively ramping up coverage for japan and showing more interest in adding japanese exposure for the rest of the year. these are all positive signs pushing for more solid growth in the market for the rest of the year. paul: should we be worried at all about some of the overbought signals that could lead to some pullback? winnie: there are definitely some flashing signs. we are seeing japanese stocks becoming more expensive. the valuation right now of the p/e ratio is -- has risen to about the average of its 10 year level. some people, for example, goat men said we might see some temporary loss of upward momentum given the bank of japan might be tweaking policy earlier than expected. however, most strategists are

still quite optimistic and bullish about the market. when we look at the ust basis we are still seeing topics of about 12% away from its 2021 high. there is still room to glow -- grow and the market looks overall still attractive. annabelle: are asia equities reporter winnie hsu from tokyo. nomura is a name we are watching when trading in japan starts at the top of the next hour. it announced a buyback of up to $677 million as its key investment banking and trading division returns to profits. let's bring in our asia investing editor russell ward. take us through the key takeaways from these nomura results. russell: these were very solid results. as expected we saw a solid recovery in their retail

brokerage business thanks to the stockmarket rally and strong results from the investment bank bucking the global dealmaking slumped thanks to some strong dealmaking flows here again in japan. again, due to the boy and markets here. probably the most encouraging sign for nomura was the return to profit from the wholesale side from a loss a year earlier due to progress on cost cuts. the ceo has been extending expanding cost-cutting. so the cost ratio fell from 96% of revenue down to 89 percent. that will be very encouraging too for investors. then the icing on the cake was the buyback. overnight we saw in the u.s. the adr of number jumped 10%. we are likely to see a jump at the open in tokyo in a few minutes as well.

paul: kicking off earnings for japanese megabanks later today what are we expecting there? russell: that is right. to me komatsu he is the first of three megabanks to report. we are expecting a drop in profits thanks to ahead it took on a rail leasing unit in the u.s.. that is already expected and announced. putting that to the side i think we should expect solid results from them. japan's megabanks are all doing well. they are all on target to -- to achieve their 40 year profit forecast. sumitomo mitsui is expecting record earnings this fiscal year. they have tell ones the works as well. the shares having risen in recent months on expectations the bank of japan will finally scrap the negative interest rate policy that has been weighing on

earnings and bleeding profitability at home. annabelle: that was our asia investing editor russell ward from tokyo. other stories on the corporate front. sticking with lenders, bloomberg has learned ubs is looking to cut about 90 jobs in its asia wealth private banking and investment teams read the -- teams. the jobs said to be eliminated may include 25 relationship managers and supporting roles in investment and solution teams mainly in greater china and singapore. newark community bank core pledged by a record as investors worry it is a harbor of risk in the commercial real estate industry. the firm acquired parts of signature bank last year and stockpiled cash contending with lending risk including troubled loans from a coat -- for a co-op complex and office space and stiffer regulation due to its

size read the banks provision for loan losses surged to $552 million. next we discuss amcham china's business climate survey amid a downturn in the region and continuing tension between china and the u.s.. this is bloomberg. this is bloomberg. when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh

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paul: the american chamber of commerce in china set to release its latest business climate survey showing companies see tensions between the u.s. and china as the top business challenge for the fourth year in a row and even though chinese attractiveness as an investment destination rebounded after last year's sharpened debt, the overall investment outlook from the firms remains thin. joining us to discuss these findings is michael hartz at the president of amcham china. some of these findings were encouraging. american companies in china actually improved financial performance and profitability. at the same time, around about slightly less than 50% still expected to struggle with profitability. what is the disconnect here? michael: in terms of the report we start by asking about general areas. how is your business doing? what is the business

environment? how are u.s. china relations going? then specific questions. are you making money? are your revenues up? are you planning to leave china? what are your biggest challenges? part of the disconnect is companies that have been in china for many years are committed to the market because of the investment they have made. they believe in china long term because of the large consumer market or because of the strong manufacturing and sourcing base. but there have been challenges. as you said, the report in general is slightly more optimistic, but, there are a number of concerns. we are calling this, yes, things are better, but. there are a bunch of concerns in different areas. one is, do u.s. companies have equal access under national treatment? this is one area where companies have said they have been squeezed out a little bit by chinese policies to boost their own companies. that's a concern. as you said, there was a little bounce back last year. we were just coming out of

covid, three years of covid. things have improved a little bit. the economy has gotten a little stronger than it was during covid. not as good as people expected. on the u.s. china relationships, there were a number of visits by senior officials last year that gave people confidence in the relationship getting to a slightly better place. paul: reading through your report a couple things really stood out for me. that was transparency, regulation. that kept coming up again and again. what sort of issues, even anecdotally, are your members raising? michael: one of the questions in terms of the top five concerns, as you noted, number one was still u.s. china relations. number two was a lack of transparency. in terms of regulations actually being implemented. in some cases china has said we are open for business, we want foreign investors coming to china and opening businesses here. companies have said even according to the rules we are supposed to trade, but often,

for example, governorate -- government procurement or enterprises people take a pass and say because you are an american company or a foreign company we won't buy from you. i will buy from someone else. to be honest, the results are varied. it depends on the sector you are in. we have seen the most optimism from companies that are consumer businesses like food and beverages and services. we have seen some of those in resources and industrials. for example, those that are making cars. they are seeing a lot of competition from domestic companies. in some cases, subsidies. but in general, companies are still optimistic there is opportunity here. better than last year as we came out of covid, but still, not yet the full potential. annabelle: how do the issues play into company plans to invest in china? michael: one question we ask each year is in china within

your top one or top three destinations for investment? when your company goes overseas, how does china rank? traditionally china has been the top one or top three investment destination rate last time -- last year for the first time in memory china felt 50% or more worse that it was but this year it bounced back. companies are saying yes we will consider investing in china and we think it is for a number of reasons. one, a lot of companies last year said they were looking to invest back in the u.s. or other places in asia. then what they found is of course it is not easy to invest in a new country. if you are not going to invest in china, we said, where would you invest? last year they said the u.s.. this year the response is asia. again we believe that is because the u.s. is very crowded with people trying to make investments that way. if your main customers in china, and for most companies trading here, china is where they are primarily selling, so you want to be close.

so china continues to win in the sense is that is a -- it is a top one or three investment destination for most of our groups. >> -- annabelle: vietnam perhaps one of the key winners out of that. what about issues around talent rotation question -- retention? is it easier to attract and keep people in china these days? michael: it's a conundrum. when you look at the statistics there are a large number of chinese young people that cannot find a job. when we look at our member companies they say they are having a hard time finding the right talent. that probably means there is a skills mismatch. the other question is u.s. china relations. it comes into play in all kinds of areas. hr is an area where over the past couple years we saw young talent hesitate to work for an american company because of the negative sentiment on the u.s. in china and that has got a little better. certainly it has been one of the challenges for yet another thing during covid 01 people could not travel is china lost a lot of people that left including a

large number of expatriates and their families that ran businesses. for those that visited china six or seven years ago and those that came last year it is very obvious foreign talent has left. china is trying to push more foreign talent back here and it will be a challenge. of course amcham china pushes for skilled people, more students, more business people, more government leaders. last year we saw senior u.s. officials visiting china. that seems to be good. this year i saw in january 2 short-term groups of students, graduate students from the u.s.. that seems to be a positive trend. but we are very well off the long-term positive and robust u.s. china relations we had a decade ago. paul: michael hart, the president of amcham china, thank you for joining us with insights on your latest report. here are headlines we are tracking around the world. talks are advancing for an agreement to pause the israel

hamas war and free civilian hostages captured by hamas. conversations are still in the early stages. a breakthrough is not expected in the coming days for your sources say the proposal has a realistic chance of success and could lead to a longer-term cease-fire. if past the deal would be the longest pause and biggest hostage release since of war began october 7. ukraine says a critical arms shortage means it is outgunned by russia three-one as the war grinds on towards a third year. sources say ukraine's commander-in-chief has ignored an order from president zelenskyy to stop down. we are told general valerii zaluzhnyi refused the request to move to a new role following the failure of the ukrainian counteroffensive against russia. the justice department charged four chinese nationals with smuggling u.s. electronics to supply iranian weapons production. they are accused of scheming

since at least 2007 two ship parts used in the missile and aerospace industries through front companies in china and hong kong. last year the justice and commerce departments launched a joint investigation focused on theft of advanced technology. in today and prime minister modi is set to use his government's last budget before elections to avoid deficit increase breed the economy's rapid expansion has led to a tax windfall for the government. economies expect the interim fiscal plan to be delivered in parliament later on thursday targeting prime minister modi's election priorities focusing on farmers, women, and young people. turn to your bloomberg at t -- tliv to get commentary and analysis from bloomberg's expert editors. coverage continues on daybreak: australia. this is bloomberg.

paul: the nasdaq ceo adina friedman says the exchange is on track to meet earnings and savings projection after last year's deal to buy a denzer grip. more about how the progress is progressing. adina: with this acquisition we have our calypso system that

provides risk management technology to banks giving them the ability to put more liquidity into the system. when they manage risk better they can put more liquidity into the market. david: let me pursue adenza, a big deal for you. a lot of people, cost, and revenue are coming in. how is the immigration going. most yields fail not because they are bad ideas, but, because integration does not get done. adina: it has been a great start to bringing adenza: into nasdaq. we closed on the deal in november and brought the team in right away and created a new operating motto where we -- motto where we have both adenz : and nasdaq people leading the fintech division. now it is comprised of technology markets, our anti-financial crime suite in the integrity filler and includes the adenza product calypso risk management and regulatory reporting. now we have a complete suite of solutions we can offer banks,

brokers, and exchanges around the world to manage risk, manage exposure to capital markets, and route criminals out of the system. i would say it is going really well. when we assess acquisitions today we do a deep dive on the culture. we think cultural alignment, values alignment, is actually a critical component of success. we have been bringing new companies and capabilities into nasdaq. we make sure we have cultural alignment. that speeds integration along. we are off to a very strong start now with adenza as part of nasdaq. david: you emphasized future growth opportunities for nasdaq. you did not talk much about cost saving. that's unusual. now you are doing integration. are you looking at substantial savings as well as growth? adena: both. when we announced the deal we announced $80 million of net expense synergies and long-term

synergies from cross-selling and expanding the business. we feel like we are on track on both fronts. with the expense synergies we have a very clear plan and path to execution. we expect to achieve that over the next two years. we have an upcoming investor day where we will provide details to investors around that. it's exactly the start we wanted and we have a very clear understanding of where we are going with that. annabelle: that was the nasdaq chair and ceo with david westin. other stories from the corporate front. social media followers of tesla's ceo elon musk are backing his threat to shift the companies location from texas to delaware -- to texas from delaware. musk floated the idea of relocating after a judge in delaware avoided his $55 billion compensation package following a challenge from it has less shareholder. republican presidential front-runner donald trump says he would block nippon steeles

deal to block u.s. steel if he wins the november election brea in december at japanese company announced it plans to buy the u.s. steel maker for $14.1 billion. the deal has been met with opposition from union makers and bipartisan lawmakers. paul: these are the stocks we will watch when trade opens in korea and japan shortly. japanese banks are the focus after tomorrow's key investment and banking division returned to profit announcing a sheer buyback of $677 million. we watch boeing suppliers too after the playmakers fourth-quarter earnings, cash flow, and revenue also surpassed analyst expectations. keep on apparel makers and retailers also after earnings reports from adidas and h&m disappointed investors. this is bloomberg.

annabelle: this is daybreak asia counting down to asia's major market opens. japan and south korea, the big market team today is the fed holding rates steady. jay powell rebuffing any talk of a rate cut by march. paul: that seems to be off the table. the market reacted profoundly to that. we saw the s&p lose a lot of ground after he made those remarks. in australia we have been backing away from a record high that we set on wednesday. deus ex is off by 1%. -- the a sx is off by 1%. suffice to say we will probably have a risk off day around the asia-pacific today. annabelle: right. we are just getting to the korea trade numbers dropping for january. we