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 saw exports continue to gain

for a fourth straight month. up 18% on the year. that was slightly higher than what economists had been seeing. a strong rebound for the month prior as well is another signal of an improving outlook for semiconductors because exports numbers really underpinned strong outbound shipments of the equipment. exports rising 18% on the year. imports continuing to be in contractionary territory. down 7.8%, a little less than the prior month's 10.8% drop. how it feeds into the trade surplus, that did narrow to around $300 million down from $4.5 billion in december. these numbers, to us, really, also, the rapid reflection, or, rapid expansion, rather, in the

headline figure for exports there were 2.5 more working days during this month found last year as well. so, it is still good numbers. but, perhaps a little less impressive when you put it in that context. we have also -- korea, the trade bellwether year. the exports, a good signal for the health of the semiconductor market. now let's shift to pan. -- two japan. it is really the focus on the fed holding rates steady. also, signaling and openness to easing in the months ahead. march is not the most likely case. we did not see a big pullback in u.s. stocks. the worst day for u.s. stocks on a fed day since march last year. you do have weakness here at this point. we are keeping an eye on trading for nomura. not online yet.

the big are spread not matching. the big news today from nomura is it is sticking with a turnaround plan rewarding investors ended announced a buyback of up to ¥100 billion, $677 million. that is one of the key takeaways from its earnings, paul. paul: let's look at australia. we just hit a record on wednesday. it was short-lived. we have the a sx off by about 1% now. off the back of remarks from fed chair jay powell. every sector of the index currently negative the aussie dollar losing ground as well. currently 65 63 against the greenback. yields slip on the aussie tenure also. yields fell pretty much across the curve. crude prices remaining steady. 7590 a barrel still waiting to see what action the u.s. takes in regards to the airstrike on

its troops in jordan that killed three and injured 25 earlier in the week. treasuries. let's look at the japan session. we saw yields falling across the curve after remarks from jay powell that appeared to take the march -- the idea of easing in march off the table. the yield on the 10 year now 39312 in the tokyo session. yes jay powell is preparing to rule out march in terms of rate cuts. that begs the question, what was the fed waiting to see? let's hear from the chair. chair powell: we want to see more good data. it is not that we are looking for better data. it is that we are looking for a continuation of the good data we have been seeing. an example is inflation. we have six months of good inflation data. is that sending us a true signal that we are in fact on a path, a sustainable pass, down to 2% inflation?

annabelle: let's bring in hartmut issel from ubs world of joining us in -- from our singapore studio. the market is perhaps surprised or not liking what we heard from powell after the meeting. did anything shock you out of it? hartmut: not so much. you have to see that the economy is not weak enough for an emergency rate cut. yes, the rate cuts are coming. we thought all along there was never much pressing evidence that you need to do it right away. the case we have i think is a forecasted this year starting perhaps in may. then really what comes inside is the fence target. 2%, more or less, their main proxies get hit. you can preemptively start to take it down. again, we have thought all along

about marge being too optimistic. annabelle: based on those expectations how are you positioning in asia fx and asia fixed income? hartmut asia presuming the right, the direction -- rate, the direction of travel is clear , you take some market estimates out, what it means for asia is everybody around the world including in asia is very much hoping they can cut. in the fed takes the lead it will be positive for some asian markets. my sense would be the cyclicals, thailand, korea, could come early. maybe easing in singapore as well possibly second quarter. other ones, india, they probably have to wait longer. possibly the most positive when it happens is china. they also need a bit despite the easing efforts, they always need to look a bit at currency as

well. when the fed mentions that makes it easier for them to also ease. i would not be surprised if the chinese markets also take a cue from that. paul: with the fed appearing to rule out or at least say that march is a unlikely for easing, does it open the door really wide for the boj to end negative rates in march? are your expectations there changed? hartmut: we still think probably more tightening, if you want to call it that. maybe only in april, with the earthquake. but what happened there, that caused a bit of weakness. we think it is rather delayed. we see them as independent. the fed will -- whether the fed cut in march or not, we think that it is still the data, inflation data in japan is evidence enough. there should be enough evidence you can tighten a little bit

from ultra loose policies. almost regardless, i would say april is the month we see things happen in japan. paul: we saw the yen weaken a little after strengthening initially during the fed price conference. what is your price target for the yen for the coming months? hartmut: ultimately it could go to 140 or so. that might not sound like a lot but it is significant strengthening. why is it not more? because we also need to see around the world, nobody wants to go harder. a lot of the central banks want to ease as well just as the fed does. they are maybe waiting for the fed. it is not only the fed cutting. everybody cuts a bit. we see most g10 currencies on average 3%-2% weakening of the u.s. dollar against the other currencies. in that sense they you -- yen

already sticks out when we have a 140 price target. paul: just getting lines on the terminal. from gorge men, economists are pushing back now on their forecast for the first fed rate cut. veering away from marge, now looking at may as a possibility for the first round of easing from the fed. you will expect a fair bit of repricing around fed expectations in terms of easing added the coming few hours i would imagine. before we leave you, i want your call on china as well. you mentioned it a moment ago. do you feel like there is a growing disconnect between what policymakers in china are saying and what the market wants to hear? how will this impact assets in china in the coming weeks? hartmut: i think that's fair. many investors would like to see a faster pace. then again, i can to some extent understand china opening the floodgates for all sorts of

leverage. it has been slow coming, but it's coming. an interesting point will be in march. where we have the party congress and everything. to see what type of growth target potentially we get that would also send a signal of maybe what is possible for china. i think the bottom line is we have, nonetheless, seen a bit of an acceleration in terms of measures, i would. whether the market think it's fast enough or not is a different question. we see, in my view, momentum into a more stimulative or more supportive policymaking. annabelle: that was hartmut issel head of aipac equities and credit at ubs world management. we are 10 minutes into the trading session for japan and korea. big movers. nomura really standing out. we had its earnings out after

the bell yesterday. the key takeaway was for investors announcing this $100 billion -- ¥100 billion share buybacks, 677 million u.s. dollars. investors are really liking that one. they also had a strong showing in fixed income trading that help lift revenue in global -- help lift revenue in global markets with an uptick in dealmaking and mainstay retail business. all these factors help to boost earnings. this is japan's biggest brokerage. also tracking for earnings, sumitomo mitsui just a little weaker this morning. this is the first of japan's megabanks due to start reporting. it is up on thursday. we are expecting a decline in profits in the latest quarter. still, results showed to show solid progress to reward a record annual net income. like you to be hurt by losses

stemming from the sale of its u.s. freight car leasing business. that is the state of play for some movers in japan. the earnings focus is very much there. let's switch. keeping an eye on boeing suppliers in asia. we saw the playmaker posting fourth-quarter earnings, cash flow, and revenue that also passed analyst expectations. it is important to note from boeing itself, the company really downplayed these financial results and the focus was more on safety issues at the company and how they plan to resolve those. we did see boeing shares gaining on wall street up more than 5%. we are keeping an eye on some of its supplies in the asian region. mixed so far, the numbers. finally earnings related, we had adidas and h&m in europe. both of those really disappointed investors. you saw h&m down 12% because it reported fourth-quarter operating profit that missed

estimates and adidas adr sinking nearly 10% after it forecast operating for 2024 of about 500 million euros, less than 50% of what analysts had been expecting from the company. so a big drop there. looking at some apparel makers, again it's that weakness. i think generally in the session so far this is really the name of the game, given investors are not liking the pushback from jay powell on expectations for a rate cut by march. we are seeing broader index down about .5% today. paul: still to come on daybreak: asia cento partnering with nvidia to make a i adoption more accessible in singapore and across southeast asia. the ceo at scinto will tell us more about the deal later this hour.

qualcomm flags only a modest recovery this year as the inventories slowly clear. we will have the details next. this is bloomberg.

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extended trading after a warning that some customers are still working through a collapse of chip inventory over shattering a solid earnings -- overshadowing a solid earnings report. it could suggest the turnaround in smartphone demand. tell us more about what this means for the smartphone market. kunjan: the company with 12 and in-line guidance for one q. the recovery in the smartphone market, especially the android market in china, is only starting. while this is a good sign, i do not think we are completely out of the woodwork's yet. annabelle: relationship with customers like apple and samsung? >> they are announcing with post customers. with apple it was a licensing

extension. with samsung it was a chip agreement. these agreements do not signal any upside from the current run rate. i think it is still a positive sign. it could ease concerns for unpredictability. it's not just customers, at least the next few years. paul: what about the trajectory for the automotive segments? kunjan: the unique thing for qualcomm is while most auto semi companies are seeing week guidance and weakness in japan, qualcomm's new software vehicles in infotainment and the digital cockpit these are areas where as the new cars launch automakers are increasing this a look and content because it is more profitable for them. despite weakness in the overall industry qualcomm is still seeing healthy growth and is expected to consider -- continue seeing growth in this segment.

annabelle: qualcomm shares still weaker after hours. that was our senior semiconductor analyst there. another mover on the intraday session on wall street. boeing shares jumped as fourth-quarter revenue and cash flow surpassed expectations. earnings took a backseat to the max crisis. during the analyst call, ceo dave calhoun publicly admitted blame for the alaska air 737 panel blowout as aviation regulators stepped up scrutiny do you over its manufacturing systems -- stepped up scrutiny over its manufacturing systems. >> we caused the problem and we understand that. we instituted quality control at boeing and our suppliers. to strengthen the focus on conformity and reducing the risk of quality mistakes. annabelle: let's bring in our global business reporter angus whitley. did that focus on the safety

issues, the max issue, taking more prominence in the numbers, did that take you by surprise? angus: since the accident with alaska airlines, the catastrophic blowout in january, you are right, with first-quarter results as good as they were it took a backseat. as the company moves forward with the federal aviation administration, taking a look at the boeing manufacturing process as well. that was born out of that boeing did not give any earnings forecast like it usually does at this time with its production. although they did admit boeing is the cause of the problem, at least for that accident, it is the faa, the faa that used to be

satisfied before it allows reduction that is key to the boeing medium-term plans to free cash flow. paul: how long will it take to address these problems and restore boeings reputation and reassure investors? angus: it won't preempt the faa on that. they expressed that today. the certification will take as long as it requires for the 737 max. it is yet to be certified. so, it is really a case of how long it takes the ntsb and other investigation specialists to decide about the alaska airlines incident, to decide what more needs to be done there.

and of course, the faa deeper screwed into the of the broader manufacturing process. in the longer term they would like to lift to 50 aircraft demand. at the moment it is capped not less than 40. paul: business reporter angus whitley there. we bought more on the outlook for the chips sector with the nvidia ceo jenson huang speaking with ed ludlow on daybreak australia tomorrow. the latest corporate stories. newer community bancorp plunged by a record with investors worried it could signify wider risk in the commercial real estate industry. the bank's provision for loan losses surge to $552 million last quarter, more than 10 times analyst estimates.

the bank acquired part of signature bank last year. it has stockpiled cash as it contends with lending risks. moody's placed n.y.c. be on negative watch and may but its rating to junk. customers and creditors of bankrupt crypto exchange ftx will likely get back all their money upon proving their losses, at least, what the company told the judge. the team overseeing the firm dropped efforts to restart or sell the ftx crypto exchange after concluding it would cost too much. leaders of the top social media platforms faced a barrage of criticism from u.s. lawmakers over there online child safety failures. the ceos of firms including meta and x testified before city committee -- senate committee meeting wednesday over legislation to impose new controls. >> social media companies that they are currently designed and operating or dangerous products. mr. zuckerberg, you and the

companies before us, i know that you do not mean to, but you have blood on your hands. you have a product [applause] that is killing people. these companies must be reined in or the worst is yet to come. paul: get a roundup of the stories you need to get your day going in today's edition of daybreak. bloomberg subscribers go to dayb other terminals. it is available also on mobile and the bloomberg anywhere app. you can customize your settings so you only get news on the industries and assets you care about. this is bloomberg. fresh, warm hot dogs! when i'm not selling hot dogs, i invest in a fund that advances innovations like robotics. fresh, warm hot dogs, straight out of my torso! one for you, one for you. oh, you're a messy one. cool, right? so cool. anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations.

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chair powell: want to see more good data showing inflation

under 2%. we believe our composite rate has peaked for this tightening cycle. if the economy evolves as expected it will likely be appropriate to begin dialing back policy restraint at some point this year. i do not think it is likely that the committee will leave -- reach a level of confidence by the march meeting. we plan to begin in-depth discussions of balance sheet issues at our next meeting in march. we are not declaring victory at all at this moment. though pop that was fed chair jay powell on the central banks rate cut field. pretty much poured cold water over the u.s. stock session with the worst day for u.s. stocks going back to march of last year. how that is felt in the european futures that have just come online again. again setting up for weakness here. we saw european stocks ending the day steady wednesday. some strong earnings coming up. still, uncertainty around what

jay powell would be doing. that is one to watch for us. other central banks are in focus. the bank of england is key. it is due to deliver its decision thursday as well. the expectation by economists that we have surveyed will be that the central bank leaves its key lending rate at a 16 year high, 5.25%. that decision was announced at 12 a copy of london time. -- 12:00 p.m. london time. we are expecting a better outlook for the u.k. economy forecasting this year and a reduction in expectations for inflation over 2024. we will have more ahead on daybreak: asia. this is bloomberg.

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>> settle some futures contracts

went from pricing more than 50% probability of a rate cut in march so significantly less, so that was the big surprise. >> that is the story as of may and june not march, it is pushing back because they don't want to cut into his cutting cycle. >> the fed has won the battle on inflation. >> the fed things march will be too soon to see evidence that inflation is showing good progress besides the goods sorry we are seeing are also shifting to services. >> with an expected sometime probably around the first half of the sierra if inflation continues on the civil courts for a few more months the federal start to cut rates. they're just not obstinately confident that that is where we will be three or four months from now. paul: some of the guests on the

outlook for the fed after jay powell made clear that a march cut is unlikely. we saw the market setting off on the back of those remarks in the u.s. and that translated into most markets in the asia-pacific as well. in australia, the asx looking back pretty quickly from the records that on wednesday. we got a bit of data out of the straily a, building approvals for the month of december following pretty heavily. a contraction of 9.5%. the market was looking for a modest expansion. a big miss for building approvals. we just saw building confidence numbers for the fourth quarter. contraction there, also down to -6%. business confidence declining in most industries. very weak in retail, -20 point.

only transport and utilities in positive territory there. other markets around the region -- a bit of weakness in japan as well the nikkei is off by 0.66%. one exception is korea doing pretty well. we saw chip exports to china from korea rising by more than 50%. that is the biggest spike in 73 months, belle. annabelle: getting up on that point, it is interesting when you look at the pmi numbers. it is actually korea that is showing one of the best increases over the course of january in these surveys. you can see here, up to 51.2, moving to expansionary territory and out of contractionary territory where it had been, at 41.9. so it's another signal that we are starting to see perhaps the

bottom in the chipmaking industry. better chip exporting numbers coming out of the country. and a chipmaking peer in the region, that is taiwan, one of the better performers, pmi coming in at 48.8 up from 47.1 in the month prior. the key takeaways were are seeing in those numbers is that it is broadly moving high. better numbers coming in out of these surveys. but only one that actually deteriorated from the month prior and that was the philippines, 50.9 from 51.5, the parent as well staying flat, 48. these are better numbers coming out of the pmi readings, private surveys, all. paul: this company is launching a new brand to develop ai data centers, one of its initiatives including a collaboration with nvidia to make it aye adoption of more sensible in singapore and across asia. getting a bill chan, ceo of the company. there is a lot of demand for nvidia gpu chips. when do you expect will be able to get this project up and

running. bill: sometime between q2 and q3 of this year. as we sort out shipments with nvidia. paul: so, once you get going, what set of demand do you anticipate for the ai data center, and how will this impact singtel's bottom line? bill: if you look at what is happening with singapore announcing the national ai strategy last month, and around the world, ai adoption is accelerating you think. about how gpus are the core foundation of ai, they also consume a lot of energy. especially -- you need special environments to close them.

you think about where this drives us personally to have data centers that are sustainable, that address the carbon footprint issue in at the same time, they are specially built for the ai environment. it is going to be key to allow has the most to post this at scale and allow players like us to then connect with networks, 5g networks, to allow them to support whatever they may have on firm gpus. some of them are small companies, midsized companies, they will probably find it hard to access gpu, so this service will drive demand for one, i would data center, which is really sustainable, hyperconnected. analysts are saying that it is the digitalization trend and it will drive 20% growth. given the ai revolution happening now, growth will essentially double, 40% to 50%. that will create a lot of demand for the data center is of. but specially built data centers that are sustainable and billed

for it environments with very high power density. then at the gpu level is where we are launching the gpu cluster. again, that is to address the scarcity of the gpus and make that available so that we can democratize ai. beyond that, we also have platforms that allow customers like paragon to orchestrate between various types of ai workloads, whether it is nvidia or with or they get it from cloud players. they have the opportunity to operate in a hybrid it i environment which is what we want to empower our customers to do. we believe given nvidia's projections and the number of ports, this is a trend in the early cycle of the ai adoption trend and it is going to be growth. at this stage we have just taken a very market demand driven view to stage as we expand and bring those aidc's out to the market

in phases. paul: i want to circle back to a point you made a bit earlier about how ai data centers are so power-hungry. give us more detail about how you will address the electricity needs, keep it sustainable and affordable. bill: thank you, paul. if you think about what we just announced yesterday, there are a few factors, to balance the duality of technologies like ai, but to do it sustainably and responsibly. that is why the positioning of what we have, green,, sustainable hyperconnected ai dc's. we are working with the leading energy companies in the region, in singapore, in malaysia, in indonesia and in thailand. essentially these companies are producing green energy and

transitioning. we are getting our tools to work with them in the region to have as much green energy as we can to power and reduce the carbon footprint from you with that, we aim to be net operational, net zero carbon emissions by 2028. that is a very aggressive timeline. a couple of years away. the other area we are addressing is sustainability. working with global leaders and also promising local enterprises to bring about new generation of cooling technologies that are very important with ai pc's, the heat and density generated by a powerful gpus. ai pc's run close to hundred kilowatt. the current operating data centers are mostly 10 kilowatt,

12 kilowatts, so we are talking 10 times more power density. annabelle: bill, i am wondering about your expansion plans in southeast asia. do you think these companies have the infrastructure ready to take advantage of what you are offering? bill: absolutely. we are staging entry into the countries and working with our customers closely in where they are accessing -- where the demand. at the same time, we are working with energy companies to prepare. a large part of that is profitability of energy and green energy, as we discussed, looking at indonesia, thailand, currently our assets are expanding in this country, and in singapore. and we are planning this out with the entire ecosystem to stage this entry. in the next two years, we will bring these ai pc's'into the

market. we are upgrading our pcs to host intensive ai workloads. the existing ones, we are retrofitting them to allow the innovation to take place and to allow us to cater to market demands. annabelle: alright, bill chang, ceo of digital infrastructure at singtel. a big announcement about their tieups with nvidia. we will get more about nvidia today, we will speak with its ceo, jinshan hong, catch that interview on "daybreak: australia" tomorrow. this is bloomberg. ♪

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paul: just want to get you across what is on the bloomberg terminal. musk's online poll on twitter asking whether or not the company teslas should move following difficulties with his gay issues in delaware, asking if teslas should move and reincorporate.

87% voting that does not incorporate and move from delaware to texas. that is according to a poll conducted by elon musk on twitter. 87% of users voting that tesla changing and taking its corporation to texas. annabelle: sources are telling bloomberg that amer sports has raised $3.1 billion in a u.s. ipo that was priced below market rent. let's get more with bloomberg's equity markets reporter filipe pacheco. maybe a disappointing result but it is still, a chinese company pursuing a u.s. listing. filipe: so many different elements we can read into this ipo. the news broken today, $13 per share. that is about 20% below the bottom of the expected market

range. so that means there was pressure test price these shares at this point. we know the ipo pricing was delayed by one day, people were expecting it earlier this week. so i think, it's good to see the price, the biggest ipo since birkenstock last september. nice to see a deal of this size actually able to come to market. i think the next step is, what is this stock going to do tomorrow, what the performance will be like. it'll give us an indication regarding sentiment and also towards appetite for shares of a company that is, at the end of the day, backed by the chinese. paul: tell us more about the company's backers taking part in this ipo. filipe: we have several interesting names. one of them is anta sports, the big chinese apparel company that

bought a big steak of amer sports back in 2019. that is not the only interesting name taking part in this ipo. we have, for example, the investment company owned by the billionaire that is the backer of lululemon atletico, quite an important name. and tencent. this group of investors actually bought more shares than they were expecting in the deal. basically demonstrating that they were backing the whole offering, and that maybe they needed to step up and buy more than they wish. annabelle: it it will send a really important signal to the market in the matter which way it goes tomorrow at the start of trade. how could end up impacting the pipeline for other ipos and listings? filipe: that is a very good point, no matter what happens tomorrow people will be paying attention to it, because a pop would be great news for all the

companies trying to list in the u.s. market, doesn't matter if they are related to china or not. and then, of course, we haven't had deals larger than 200 million u.s. dollars by chinese companies in new york for a while, since dating back to 2021, that hasn't been an ipo of a significant size by a chinese name in the u.s. so if this goes well, it could open room for more companies to talk to banks. and this name is a different case, but it is on the radar. regulators in china are on top of it permit so there a lot of elements to this puzzle. definitely an interesting deal to watch. paul: bloomberg's equity capital markets reporter filipe pacheco there. we will hear from the anti-sports ceo from the new york stock exchange, coming up later on bloomberg tv at the times you see on your screen. still to come, the slump in

china's home sales persists even after china evergrande process liquidation. we have more on that next. this is bloomberg. ♪ the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com

paul: the sharp slowdown in china's home sales dragged on in

january, even after policymakers stepped up efforts to arrest the slump. get details from our greater china senior executive editor john lewis in beijing. the value of homes builds keeps falling. when are we going to see a floor for the prices? john: that is the question everyone is trying to answer, the sales for the 100 biggest property developers in china in january, that number fell by 34% from a year earlier, about 48% down from december. so a fairly significant drop. the problem i think, for the developers right now is who is coming into the market when we have falling home prices. there is a reluctance to buy when people think that if i wait longer, i can get it for cheaper. that is the problem people are trying to deal with, the problem the government is trying to make sure that those developers are getting the financing that they need from banks in lieu of the

fact that they are not able, they are having a very hard time selling the homes that they have in stock. annabelle: but sometimes it's also difficult to sell because consumers don't want to buy them. we have seen a lot of measures announced towards the end of last year and also this year just to try to bring buyers back to the market and nothing seems to be working so far. could we expect more extreme measures, or do you think more time is needed? john: i think that 48% drop that we saw from january versus december, that was partly because we did see the eggs duties -- beijing, shanghai, loosening restrictions on homebuying. in the month of december there was a bit of a pickup. that has tapered off and that is why we are seeing this number we had in january. there is a general expectation in the market that china will do more for cities like beijing,

shanghai, why joe and shenzhen, there are still relatively high barriers to purchases, people are only still allowed to buy one home per family. we are expecting this to be gradually rolled back. annabelle: that was our greater china senior executive editor john liu invasion. let's talk about how markets are faring in china. the stock selloff is deepening. if the pessimism about the housing crisis in china waiting on it. that stock with charlotte yang joining us. it is still pessimism around the property sector playing into stock prices. do you see that continuing, the trend? charlotte: yes, it's not looking too good. we just got that negative data point about china's january sales, property sales took the deepest fall from last month. even in hong kong. all of this, i think, is showing investors unsure that -- we had

seen supportive policies from city to city, but that hasn't been very helpful in terms of changing the broader property sales. traders are not enthusiastic about the readout we got from china's allete bureau, which is largely reaffirming the existing policies. i think sentiment is likely to be very weak today. paul: paul: it was not that long ago that we got news of a potential $278 billion package to put a floor of the prices, and now the selling swiftly resumed. what more are we expecting that we might hear? charlotte: chinese stocks actually just wiped out all the gains we got since last week when we heard from the government vowing more forceful measures. the bigger picture here is that the policies came too little and too slow. it's unlikely to help repair what has been happening on the stocks side given now we are

seeing the csi 300 having an unprecedented six consecutive months of decline. until the big meetings,, two sessions in march, we will likely be in this policy vacuum stage for a little bit. that is not good for investor sentiment. annabelle: yes, regulatory uncertainty is a key reason that foreigners have continued selling and that has now gone on for six straight months. is there anything, we talk about valuations, but is there anything that could tempt them back in at this stage, do you think,? charlotte: it is looking harder and harder because valuations, for those who have been -- those who came in in recent months have been borrowed heavily. also the geopolitical risk is becoming another pressure point for pdd, and others.

it's not just about what china is doing, it's also about lawmakers in the u.s. and also about what might be doing. -- and also about what trump might be doing. paul: charlotte yang joining us in hong kong. in an we will be getting pmi numbers out of china for the month of january. here is some stock to watch when we do get going in hong kong and china. anta, after amer sports is said to have raised over a billion dollars in the u.s. public offering. other hong kong listed athletic gear and apparel makers are also in focus, after that he does and h&m's -- after adidas and h&m's earnings disappointed. annabelle: futures looking slot,

perhaps i wait-and-see mode ahead of the private pmi numbers set to be released. taiwan stocks looking for a bit of a session. we had the pickup and pmi, better chip exporting numbers, out of korea as well. taiwan and korea markets are heavily correlated and we are heavily correlated in we are ceva kospi today in positive territory. it was the worst fede we have seen for u.s. stocks going to march of last year, but jay powell really pushing back on the market expectations for a said rate cut by march of this year, saying it is not the most likely case. more data between now and the key meeting. that is it for "daybreak: asia." our markets coverage continues as we look ahead to the start of trade in hong kong, shanghai and shenzhen. standby for "bloomberg markets: china open." ♪

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