>> welcome to daybreak

australia. markets have just come online. >> i'm annabelle droulers in hong kong. we are coming down to ages major trading opens on the top stories this hour. caution returns to markets with treasuries under renewed pressure as strong economic data stokes fears inflation is not yet tamed. haidi: china is said to be tightening trading restrictions. the fights to stem the deepening stock around. annabelle: the rba widely expected to hold rates at a 12 year high on tuesday with investors said to focus on the dated quarterly forecasts. haidi: take a look at how we are setting up. pretty mute to start trading in australia. expecting more downside with futures suggesting we are not going to see much in the way of either direction. it is rba decision day. the first meeting of the year. the first under this revamped

regime. we had the meeting kicking off monday. the decision is expected at 2:30 local time in sydney followed by the press conference as well as updated forecasts. we will be zeroing in given expectations rates will stay on hold of the 12 year high. we will be seeing the extra scrutiny on the path of rate policy under this communications regime. take a look at how we are faring when it comes to australian bonds. several bonds following losses we saw in treasuries. data following jay powell's hawkish comments. a spay of weak growth and price data. kind of setting up these expectations for the day. take a look at how we are faring. weakness setting in as we get to the start of trading. a quarter of 1% softer with nikkei futures trading in chicago. dollar-yen holding steady at the 148 level.

of course not much when it comes to china but at least a 50 china futures modestly in the green. annabelle: take the wins where we can get them. you mentioned the moves we had in treasuries. that is the focus this morning. i want to put in more context. just about a month ago, the market expectation for the march meeting from the fed was a near certainty we would be seeing a cut. today the odds are around 10%. that is what has driven the huge moves in the. bond space the recalibration around when the fed would start to cut. glenlivet saying the markets are way too ahead of themselves of that has been playing into the trading dynamic. all yields moving, higher across the curve. some as much is 15 basis points in the prior section. you are continuing to see the s&p 500 within reach of the 5000 mark.

stocks in futures fairly flat to start the day. the focus coming down to china. the moves that continuing -- the route continuing. were steps coming through. sources telling us beijing is looking to tighten trading restrictions on domestic institutional investors. it also be for offshore units. let's get more on this. our chief boy the asia correspondent stephen engle joining us. is it something substantial or a band-aid solution? >> a bit>> of a piecemeal approach. keep in mind there has been a number of different factors in play. there has been perhaps the national team coming in coming -- across border and propping up stocks after the midday break. small caps have been pummeled. we talked about yesterday were the csi 1000 index following another 6%.

that two things i can talk about now. one, we are seeing the national team perhaps coming in through some of these directives coming through securities regulators. there is this chart saying the nine year lows in sight. we already saw a five-year low for the csi 300 on friday. i would to change the terminal. i will get to some of the piecemeal approaches and regulatory moves we are hearing about in a second. look at this northbound stock connect flows. five straight days we are seeing intraday rebounds have started to coincide more with buying by offshore participants. eight of the past 10 sessions have seen inflows into mainland shares from the northbound program should of those days, the csi 300 index so intraday rebounds as the northbound flow started turning around. it is not a coincidence. market participants are saying this is the national team which

will perhaps be funds being directed from overseas units of state owned enterprises being encouraged to invest. that goes oftentimes under the big caps. that is why we saw the csi 300 in the afternoon end with a gain . the csi 1000 we can bring up. producers are on their game this morning. you can see year-to-date it is down nearly 30%. this is where a lot of the social unrest is starting to bubble up where people are saying it is a casino. it is absolutely devastating especially as the nation heads toward the lunar new year holiday. not very optimistic. to answer your question at the top, let me read through some of these bullet points. what we are hearing from sources. authorities are imposing caps on some brokerages. total return swaps with clients. that limits a way for china

investors to short hong kong stock. that is going the other direction. the hang seng index down 9% so far this year. some chinese brokerages that use the panel -- the channel to buy mainland shares have been told not to reduce their positions. that goes in line with the notable team budding and you cannot reduce your positions. here is where we get interesting. hedge funds have been banned from placing sale orders completely. others were barred from cutting stock positions in their leveraged market neutral funds. this is called a direct market access strategy. it is believed to have exacerbated the route in those small cap stocks in china. csrc has been out with a bunch of directives including a press statement on sunday saying it has found evidence of malicious shortselling and other admirable behavior. they are trying to -- other abnormal behavior. they're trying to crack down on

that. annabelle: even angle with the latest. turning to her other big story, there's there in australia widely expected to hold interest rates at a 12 year high. maintain the hawkish starts against elevated inflation. the first decision of the year the first and the revamped communication strategy. let's bring in our economics reporter for more. you were saying you will be glad when the day is over. there has been a lot of anticipation in the first meeting under the new regime. >> it has been two months we heard from the reserve bank and out we are going to hear them -- from of them in new structure. we are going to be -- they are going to be releasing the quarterly forecasts along with the rate decision which is new. it did not happen like that earlier. they would release three days later. there is going to be a lot of information we will get from the rba. expectation is they will revise downwards their inflation

forecasts. and maybe drop their tightening bias or soften the tightening bias like the u.s. federal reserve has done. that is the big question is whether they continue to say the tightening is still needed or whether they remove that. that is what investors will be closely looking at. annabelle: the rba, we know it is putting in place recommendations of an independent review. it did find shortcomings in its communication and decision-making. what has changed exactly? >> they are going to be doing fewer meetings. they used to do monthly meetings. 11 in a year. now they're going to do once in six months. eight meetings a year. meetings are going to be longer. instead of a one-day meeting, it is going to be a two day meeting. this one started yesterday. the decision will be announced

today. they are going to be releasing the quarterly forecast at the same time. which was not the case before. there is going to be a press conference from governor michelle bullard after every meeting. eight press conferences. the statement earlier used to be written by the governor. from today onwards, it is going to be the statement from the board. not just from the governor. that is because to broaden the economic accountability. it is not the governor taking the decision alone. it is a poor decision. annabelle: big question is whether we hear them pushing back on the bets for any cuts. that was our economics reporter in sydney. you can turn to your bloomberg for more on this. go to tliv to get commentary and analysis from bloomberg's expert editors. we will hear from a investment

management about why they are cautious on china and the ev sector. 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

>> it feels like the economy has been quite strong on the growth for. you have big jobs numbers. big gdp numbers better than expected but at the same time we have had inflation better than expected too. if we keep getting more data like what we have gotten, we are well on i believe well beyond the path to normalization. annabelle: chicago fed president listing goals be speaking about the need to see more good inflation data before the fed commits to cutting interest rates. turning us in sydney is a client portfolio manager at health

entity investment management. great to see you in the new year. policy error is top of mind. as we have seen the market reports, still expectations are for five cuts. what is the risk here? >> i think if you look at where we have come from last year, the market was expecting six cuts. we are down to below 20% probability of a cut in march. even the cut in may has jumped onto a 60% probability. the risks are at the market is looking for to many cuts. the data might be too strong or risk of inflation could flare up again and you will not see the level of cuts the market is pricing in already. haidi: that uncertainty, geopolitical and domestic uncertainty overlaid. we are already trading at a market where multiples are not low. where are you finding opportunities?

>> i completely agree. as we entered this year, 500 sitting at 20 times pe which is lofty. the key risk probably if you look at last year, the majority of those returns were driven by multiple expansion and earnings growth. even now in the fourth quarter earnings season, we see earnings growth. we are probably close to the 50% mark. earnings growth only sitting at 3%. the market was not expecting much. what the market is looking for is the big inflation into the fourth quarter of around 19% earnings growth for the snp. that looks pretty punchy. we continue to look at the trends from last year. we continue to look further within those streams rather than the mag seven for ai for example.

haidi: i suppose the hard thing is tech earnings have come out pretty strong. companies are talking about ai and still doing well. is that a pocket you are still looking into? >> we believe that is multi-decade trend. we are in the infancy. what you normally see in these environments where you have a new tech evil lucian, the start of the evil lucian, you have -- new tech evolution, the start of the evolution, the ability to implement that. as we evolve, we continue to see other benefits through the ecosystem. that is where we are looking now is to see what companies across a number of different sectors can benefit from this strain with the services and products they provide. i can mention may be a few names. something like a prologis.

they industrial read. they are benefiting from a lot of peers. and the need for more data centers. they are doing a lot in data centers as well as solo which is the next leg of growth for a company like that. that is one example of looking further afield. annabelle: which areas are you not as positive on? ev's for instance is one that has been highlighted. >> i think there are a few pockets of concern for us. i think china is still one. low growth and companies reporting disappointing results in the specific quarter. ev's in particular. what we are seeing is tesla has fallen out of the mag seven. cost issues as as well as slower

sales. across the broader spectrum, if you look at that ev chain of companies in the vehicle space, a number of the big makers are saying they are reducing the number of ev's they are planning to make and also pricing seems to be coming down. that is one area we are avoiding. focusing on other parts of the consumer space where we still see growth. haidi: client portfolio manager and investment specialist at affinity investment management in sydney. more to come on daybreak australia. this is bloomberg. ♪

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>> the australian government is appalled at this outcome. we will be communicating our

response under the strongest terms. haidi: the australian foreign minister speaking after the australian writer received a suspended death sentence in china after being convicted of spying. let's talk about the broader implications of this decision on ties between australia and china. ben wescott joins us from canberra. this relationship has only recently started to thaw under the new government. penny wong, you could sense the strength in that language used yesterday reacting to this ruling. >> you are absolutely right. i was in the room for that press conference. there was a real sense. some people have said anger. there was a real sense of the gravity of this moment in her appearance there. there is no doubt this will dramatically complicate the push

by the labor government in australia to warm ties with china. there is a division on what this means. with this is a decision targeted at this trillion government or an internal political decision by the chinese government which is not have much of a bearing on this trillion ties. there is no doubt this will complicate the push and throws into doubt the wind tariffs which were expected to be removed within months and the potential visit to australia by the chinese premier. annabelle:annabelle: australia is not going to be recalled its ambassador from beijing. what is the significance of that decision and how are they likely to continue to advocate for this case? >> there was no doubt if you compare the language used in

january 2019 and was formally charge later that year and the language that was used yesterday, there is no doubt australia is pursuing its intent to engage with china mostly behind closed doors and keep the temperature reasonably cool in public. despite that, this morning we sold prime minister use the word outrage. we sell image of -- we saw images of the chinese ambassador being summoned to the department of foreign affairs and trade yesterday. even with not wanting to turn up the temperature of the relationship higher than it has to be, this is strong language from the australian government that is taken aback by this decision. haidi: do expect any further progress when it comes to this case and i suppose contrasted with the outcome of that we had for the us trillion journalist -- the australian journalist

how? does the government proceed from here because there is a screen of opacity over how they reached this ruling and what went into it. >> the next two years are a crucial time for the australian writer because he is on a suspended death sentence. as long as i may china's words there are no mysterious crimes out of the next two years, he will receive a license after that which is comparatively preferable. those two years will obviously be a crucial time. the australian government is going to have to decide. part of what happens next is based on whether or not this is what some analysts have called hostage diplomacy. whether the sentence is intended to send a message to canberra or what this is -- or whether this is an internal chinese

matter. haidi: that was our us trillion government reporter in canberra paired with shift to korea because samsung's executive chair has been acquitted of stock manipulation charges. that allows him to continue leading the conglomerate. it comes at a crucial time for samsung amid a global slowdown and challenges from other tech firms. from work, our asia check senior reporter joins us. put a shocking verdict. what does it mean for samsung? >> he was found not guilty of all the charges including stock manipulation. this goes back to 2015 merger of the two units that the prosecutors said facilitated his succession. the panel of judges yesterday at the seoul court said they

could not conclude there was enough evidence this happened. he is completely cleared. this is a bit of a surprise to some people because some people expected that he would get a suspended sentence. this is a victory for him and the best possible outcome for samsung. going forward. obviously the company has been distracted by this legal proceeding. there had been more than 100 trials related to this case of which he attended himself 95 trials. he had to schedule his business trips around his trial dates. it may not be obvious from outside but it has paralyzed samsung in a significant way.

they had to make a critical investment of the right time for the future, but they instead have kind of lost ground to memory chipmaker rival sk hynix in terms of making advanced chips and in smartphones, they lost market share to apple in the past year. we expect with this verdict to samsung to make a bigger investment going forward in critical areas such as ai and biotech going forward. had to actually make himself more visible. and leave the company the way he should have done in the past years. haidi: as we have been saying, this is an extraordinarily good outcome for samsung and unexpected. do you think it is an economic

decision? >> the analysts and the lawyers so we spoke to yesterday certainly have that view. it is true that samsung is in a difficult situation. it is the biggest company in the country that has been experiencing a huge slump in smartphones and semiconductor industries. they think there is some element to it. haidi: our asia check senior reporter. more to come on daybreak australia. this is bloomberg. ♪ xfinity rewards presents: '1st and 10gs.' xfinity is giving away ten grand to a new lucky winner for every first and ten during the big game. enter daily through february 9th for a chance to win 10gs. with the ultimate speed, power, and reliability the xfinity 10g network is made for streaming live sports. because it's only live once.

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wages data coming out of japan. we saw it rising. labor cash earnings up 1% on the year. the estimate had been for 1.4%. falling short of that estimate. that reading was supposed to be a temporary pickup. you had strong profits leading companies to boost their winter bonuses. this is fairly weak data. that is being emphasized through the real cash earnings. dropping 1.9%. that is worse than with a survey had been expecting of -1.5%. these labor numbers not a great signal for the health of the japanese economy. you are seeing that reflected in household spending because it is in contractionary territory down 2.5% worse than with the estimate had been for a reduction of .2% flat. not great numbers.

tells us that it is something the boj is going to be tracking closely because they want to see sustained wage gains before they start to exit away from negative rates. haidi: take a look as to what we are tracking in terms of how this market open and the cash trading session is progressing. half an hour into the start of trading in australia. for the downside when it comes to stock trading. so much of this is reflected on sidelining ahead head of the rba decision. no expectations as to a decision other than a hold but more scrutiny when it comes to the upgraded forecast. the economic forecast and inflation forecast as well as if these expectations of when the first rate cut might come through. this is the first meeting of the year. we have not heard from the rba in a couple months but the first under the revamped communications regime. a pretty torrid year for the

rba. a lot of these reforms have kicked off at the start of the year including the press conference in the afternoon today. annabelle: going to be tracking it closely. we will get more on it now because we have the rba as you said set to reveal its decision later today. the expectation is for a hold at 4.35% but let's discuss with our next guest, joe masters, chief economist at bear and joey. just ran through the human acacia and. what are you going to be you watching for most closely out of this? >> the press conference is probably the thing we are looking forward to the most. we have not had that in australia. we have not heard from the rba for some time. that is an opportunity for the governor to expand on the post meeting statement to answer the questions coming from journalists. that is the biggest change we

are looking for the most. there is a range of changes to the others i would highlight is that the post meeting statement that announces where policy is set and where it is going will come from the board and not from the governor. a more consensus of you and this is part of the push to put the possibility of policy changes onto the board rather than the governor. we will get the statement on monetary policy released at the same time as the rates announcement at 2:30. it used to come on the friday following. that is a communication revamped . uncertainty about what we are going to get. it will be a lot for economist to troll through. no expectation of a change in rates. a lot of focus on forward guidance. haidi: what do you think is the most likely scenario? you think the rba is set to push back any expectations for cuts? keep the tightening bias a little longer? >> i think it is a close call.

if you look at the economic data, had weak labor force, weak trade, lower-than-expected inflation relative to the rba's forecast. given those, the data, the rba zone forecast, they will extend to mid 26. they will forecast core inflation at 2.7% at that point. you could argue they could soften the tightening bias. perhaps the language will change to the assessment of the appropriate stance of monetary policy rather than the assessment of the need for further rate hikes. i think it is a close call. they could hold a tightening bias because they want to sit on market expectations. it also mindful that back last year when they paused in april, they saw the housing market take off quickly. maybe they want to sit on top of that for longer too. haidi: the discrepancies between what the rba is dealing with and

the fed, does that give them an argument they could stay hawkish for longer? the cash rate is 1% low the fed but inflation is higher. >> they have more room to move down the fed. inflation is coming down faster than the expected. we have very clear signs in australia the economy is slowing. that is not the case in the u.s. that is critical for the outlook because to bring down the sticky inflation, -- we can measure that in lots of ways. when i will give you is hours worked is falling faster than it did in the financial crisis in australia. the labor market is easing and economic activity is slowing. that should give them confidence inflation is coming down and that might be moderating faster than they thought. haidi: how important is it and i suppose this is more of a markets question for the updated forecasts to come immediately? how useful is that for you?

>> as an economist, it is a lot of information at one time. it is helpful them waiting for a few days. in the past we have had the statement which has had high-levels over there forecasted to go. it has left economist to work out the nuances under the statement relative to what may be coming a few days later. on balance i think it is going to be easier to get all the information. for the media, they will have the forecasts before they get the opportunity to ask the governor questions. haidi: what do you see when it comes to the aussie dollar which is coming under renewed pressure? even if we get a lift from a hawkish tone from governor bullard, you think there is more downsides for the aussie dollar given the trajectory of china's economy and given potential repricing that leads to a higher greenback? >> definitely the trajectory for the u.s. dollar has been critical. that has argued we been the

driving force for the currency. if we look back at 2023, the policy had a mixed performance against other trading partners but clearly very weak against the u.s. dollar. the u.s. dollar store is important. clearly china having an impact as we move forward on sentiment but also on the economic outlook. a weak china raises the prospects you would start to cut rates earlier than you would have done here in australia. there are certainly some pressures. we have a current account surplus. that is an unusual position for australia. we that surplus to last for some time. you can see some weakness on the day following the rba. some volatility perhaps around the press conference. as we hear from the governor in try to dissect what she is saying. if we look further forward, our value modeling is the fed can slowly drift toward $.70 over

the next 12 months. helped in part by a fading u.s. dollar. helped in part by a narrowing of interest rate differentials. annabelle: what else has changed over the last couple months is the fortunes for the albany's government because there is a lot of pressure on the prime minister to ease the burden of the cost of living pressures. something coming out of this is the stage three tax tweaks to boost low-income spending. do see that as having any bearing for policy direction from the rba? >> on the redesign of the stationary tax cuts, what i find is a lot of people are comparing the new redesigned relative to know change. but actually, we already had tax cuts in her forecast as did the rba and putting much all forecasters. the redesign is about the redistribution. we estimate it puts $5 billion into consumption over and above what the already legislated tax

cuts would have done. to put that in context, household spending in australia is $1.3 trillion a year. it does give us a lift to consumption but not enough to change our view materially around inflation or around the rba. having said that, it seems clear and the treasurer talked about this last night that they are still looking for additional cost-of-living relief. that could be an extension of the electricity subsidies. that could be another material lift in rental subsidies. i'm sure they are casting the net wide. they are putting an inflation lens on it so they are trying to help everyday australians but not make the inflation problem not much worse. haidi:haidi: always great to have you especially on rba day. we counted on to the decision at 2:30 sydney time. turning to the fed and the chicago fed president says he would like to see more favorable u.s. inflation data before

interest rate reductions can begin. speaking exclusively to bloomberg, he said he would not rule out a potential cut in march. >> it feels like the economy has been quite strong on the growth front. you have big jobs numbers. you have big gdp numbers better than expected but at the same time, we have had inflation better than expected too. if you look over the last seven months, we have had seven months of quite good inflation reports right around or even below the fed's target. if we keep getting more data like we have gotten, we are well on i believe well beyond the path to normalization. >> i understand you don't what to tell yourself down, but is there much of a chance of a march move? the markets think 18%. some people think that is even high. >> as i say, all we need to do

is keep getting information like what we have been getting for the last seven months where inflation on a flow basis is absolutely under control and is in the range of our fed target. if we keep getting strong quantity numbers, jobs numbers, gdp numbers, growth numbers while inflation goes down in the conventional view, that is not supposed to happen. we would have to be entertaining the possibility that we are entering a period like the mid to late 90's where you had productivity growth faster than expected. faster than trend and that opens up new possibilities. >> scott pelley of cbs said powell suggested rate cuts would likely be a quarter or maybe a half of a percentage point at a time. that does not appear in the

transcript. it was a have an edge point discussed at the meeting? -- was a half percentage point discussed at the meeting? really >> we don't report what is discussed at the meeting until the transcript comes out. our standard way to think of it from the fomc is somewhat like what is in the summary of economic projections. the sap, which comes out every quarter. the last time that came out in december, you sell the medium member of the fomc thought there would be three rate cuts -- i.e. 75 basis points for the year 2024. >> is there a situation other than a recession or some sort of market failure where you would consider a 50 basis point cut? >> i think you get the data and you respond to the data in its totality. i don't think it makes sense to

speculate about hypotheticals of what would happen to make the rate cuts to be different from what they have been in the past. annabelle: that was the chicago fed president austan goolsbee speaking exclusively to mike mckee. that is the latest stories from around the world. let's get to these once. israel's foreign minister says time is running out to find a double medic solution to the presence of hezbollah fighters along its border with lebanon. israeli forces have exchanged fire with the militant group almost every day since the hamas attacks of october 7. israel has said it has prepared to open another warfront if has blonde is not retreat from the border under the terms of a long-standing u.n. resolution. donald trump and house republican leaders have slammed a bipartisan senate deal to impose new u.s. border restrictions and unlock billions of dollars in ukraine eight trump used his social media post to call it a death wish for the republican party.

speaker johnson said the senate compromise is dead on arrival in the house. the deal to crackdown on illegal border crossings include $60 billion for ukraine. britain's king charles is receiving treatment for an unspecified form of cancer. a new health scare for the real family less than 18 months since the death of queen elizabeth. the cancer was discovered during the kings treatment for a benign prostate condition. charles has suspended public duties but will continue state business and official paperwork. watch us live and see our past interviews on our interactive tv function tv . you can dive into any of the securities or bloomberg functions we talk about. become part of the conversation by sending us is the messages during our shows. this is for bloomberg subscribers only. check it out at tv . ♪ thanks to avalara, we can calculate sales tax automatically.

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annabelle: global investment in the energy transition soared 70% to a record $1.8 trillion. bring any of data showing spending on electrified transport overtaking renewable energy investment for the first time. bnef's aipac head joins us to break down those numbers. interesting takeaways.

what are we seeing for 2024? >> in terms of regional -- we are going to see similar trends this year. we expect asia-pacific to continue to remain the largest market for energy transition investment. going to be lower than -- within the countries we see india surpassing japan. on a sectoral level, within 2023, the highest growth rate -- it is likely to continue this year as we see a scene of a can amount of projects in the pipeline. in a packed, -- in aipac, investment in renewable energy was larger. we will likely see that change

this year as we see more momentum in the region. still positive growth. we are seeing significant growth in emerging markets in the region. particularly in india. haidi: with all those investments in mind, do you think we are on track to meet the paris climate goals? >> it is a bit of a mixed picture. let's start with the good news. if you look at investment in supply chains for energy transition technologies, the annual investment is running ahead of the paris agreement. some sectors such as the investment supply chains for solar batteries and ev's are running ahead of what is required. others are lagging behind. if you look at the investment

required for deployment of the technologies by market, about $1.77 trillion gotten vested in 2023. that number running globally at an annual ravage of three times for the remainder of this decade. if you look at it by market, in china we would have to see the investment rate within double on average for the rest of this decade. for japan, that would have to be more than six times. for india, more than nine times. these are really rapid growth rates required to be aligned. there is enough money available but we would have to see a lot more public and private cooperation. much more multilateral cooperation. unlikely we are going to see that happen in the short term. annabelle: that was the bloomberg nef head of aipac research in india.

we will have more ahead on daybreak australia. this is bloomberg. ♪

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software analysis company gave a better-than-expected outlook for 2024 setting strong demand linked artificial intelligence. income and revenue for 2023 both beating expectations with management saying they are rebuilding the company to meet ai demand. bloomberg has learned read it's revenue for tuning 23 rose 20% as it prepares for one of the most anticipated ipos in the u.s. a source says it made a profit out of the fourth quarter but not across the full year which held that the social media platforms is telling investors revenue topped $804 million. annabelle: a significant step for south korea on tuesday because it is kicking off a test run of extended trading hours for its currency. what it was to do is attract more inflows and approve the market accessibility. the tests dates have been moved forward a week to today to secure enough time for a review. let's get more from her fx and rate strategy -- from our fx and read strategist.

significant step here trying to extend the trading hours and improve the accessibility. >> certainly is. pretty much a major step. at the moment, the onshore trade is the key thing. the onshore hours are from 9:00 a.m. to 3:30. limited in the space of the fx world. the goal is by july to extend that to 2:00 a.m. quite a drastic change. the whole idea behind this is to increase liquidity. and helping korean bonds being added to the ftse which could increase inflows up to 17 billion a year. it is estimated. it has to be remembered while the rules have been expended, it is going to be the won being traded against the dollar and the you want. it is not related to offshore

trading. it will help companies on the onshore market because if you want to trade the won, you are doing it in ndf's. for a lot of companies, certainly foreign investors, it is not the easiest or most attractive currency to trade. the expansion of the hours would definitely help. annabelle: are we expecting to see a big boost in volumes? are we expected to see more foreign traders in the interbank market through this? >> i think certainly with state street bank, they have joined the local interbank market. that is what institutions will be joining if they wish to. the idea is it will hopefully spur more investors to partake in interbank market which would increase liquidity particularly with extended hours. when big thing alone, if it does

impact the inclusion of the korean bonds joining the ftse will to government bond index, that is a big win for the won. estimated flows for the year could be as big as 70 billion. a big increase in liquidity. haidi: our fx and rate strategist with the latest. coming up, why government bonds can deliver solid returns in the near term. we take a closer look at the acquittal of samsung executive chairman and the implications for the company. ♪

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annabelle: this is "daybreak: asia." we are counting down to asia's major market opens. the focus comes to the moves in the bond space overnight. we saw a big slide. stronger data tells us the fed really not going to be coming anytime soon. haidi: some of that repricing and expectations still for five cats. down to the timing, i guess. shifting to the rba focus, the first meeting of the year. with just about everything else, it is about the signaling rather than the decision itself. annabelle: not to mention, of course, we are tracking chinese markets where, will we see a reprieve from the selloff? let's get to the opening japan. we have wages data coming out half an hour ago. pretty mixed signals, but in aggregate, we saw wage growth strengthening less than expected in