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 december.

. still showed signs of underlying momentum if you look at data that avoided sampling problems excluding bonuses and overtime pay. actually we saw better growth but still, undershooting with economists had been expecting at the headline level. nominal cash earnings as well, raising less than expected. not a good signal for the boj, that wants to see sustained wage growth before shifting away from its easy policy settings. but today you are seeing yields moving higher. japanese yen very flat. equities just fractionally under pressure. let's switch to the outlook for korea stocks. in the session, it is the picture of weakness coming through. we saw u.s. stocks reflecting some of that pressure. that is a carry across. equity futures a bit in the red. korean won, we do see the currency trading band being expanded a bit in the session. to give more details on that,

when i say trading band, i give the trading hours. it will be allowed to trade until 2:00 a.m. today in the trial. it's all about trying to improve the market's accessibility, haidi. haidi: yes, falling on the back of china doing something similar. this is the picture on rba decision date. we are waiting for the three term sydney time press conference with governor bullock expected to speak. we haven't heard from them in the past couple of months, this is the first decision in this revamped regime of communications from the central bank. quite a bit of downside when it comes to us trading the asx is down 1% ahead of that rba decision, which we are expecting to be a decision to hold the key rate. lots of scrutiny over the signaling of the right path forward as well as the updated forecast, which today onwards we will get them literally on the same day as the rate decision, rather than having to wait a few

days as with the previous structure. miners and tech stocks in particular are leading the losses. the benchmark here declining for that second day. a reminder are, kiwi stocks not trading today, the market is closed for a national holiday. the dollar is touching the 12 week high the back of the yield surge. broadly we are looking like some downside elements for the aussie going forward, particularly in light of weakness and tuning in the chinese economy. looking across crude markets, you include is giving back some of the games we saw in the early part of the week. just under $73 a barrel. the pretty study trading sessions. these risks are being offset by the hawkish fed comments. we are also seeing more risks of strikes from the u.s. and regional proxies against -- against iranian regional proxies , i should say.

so immodest move across oil. a quick look, belle mentioned the move in treasuries, the big two day losses. the fed message beginning to sink in. that was the biggest two day loss in months, not just the messaging, but also the strong ism data, reinforcing the message from jay powell that rate cuts are unlikely to begin potentially before may. the 10 year, that two day increase for yields is the biggest since june of 2022. minute guest says treasury yields, having backed up a bit, are offering better attractive points. let's bring in cao and portfolio manager at oriana financial services -- cio and portfolio manager at oreana financial services. guest: now that we have seen the backup and yields, i think as we got into the end of 2023 and

that big rally in treasuries, perhaps it's got a bit of itself and the yields were looking less attractive at those points. but now that we have seen that big retracement back, we do see good opportunities. because although the fed has pushed back pretty hard on the march rate cut, or even a may rate cut, they may have effectively said we are cutting rates this year so we know that the direction for yields is lower. as yields go back up, there is a good opportunity to get set, and dissipating good income, but also some upside risk if the economy doesn't slow a bit faster than what we're seeing at the moment. haidi: eyes, within the uncertainty in trying to predict what the fed or the rba or any other central bank does at the moment, where do you see the risks, particularly in the year where we are seeing already geopolitical risk increasing, and also as we head into the

elections, domestic political risk as well? isaac: there are a lot of broad risks. geopolitics has been a big issue in the last couple of years. now one of the major risks markets are facing is just expectations that have increasingly built up for a perfect soft landing. this story of surgically precise rate cuts from the fed allowing not just the economy to have a soft landing, something where the economy will expect outlying trend growth. really we are seeing pricing for acceleration of growth, and that isn't something that looks likely in the data, yet the data have stabilized. but we are not really seeing that really start to pick up yet. i think the pricing for these very strong equity returns could just be upset a little bit over the next 12 months or so. annabelle: yes, because you are still thinking a recession will come. so i am interested how you are interpreting the recent data

that has been on the stronger side if we do see a contraction, the magnitude that you will be predicting. isaac: the recent data have pushback on the near-term recession. the two economic indicators that are really useful, manufacturing pmi and the change in an employment rate. the manufacturing pmi is back up towards 50. we need to see that fall below 45 to confirm the recession. if we are back above 50, then we are seeing a bit of improvement in growth, but at the moment, it is pointing to some trends in slowing growth. it's a little bit -- same as the employment rate, just stabilizing. it's not giving a flashing red signal, but the trend is amber. we are watching that carefully. at the moment, it suggests that the recession would be in the second half of this year. as far as the depth of that, a lot of that will be determined by the fed and how quickly they

are willing to cut, how soon they are willing to cut, and how deeply they are willing to cut as economic data perhaps s often. if they are turn to get of the -- head of the curve, that will determine how deep a recession may be. annabelle: what do you think about the lack of market breadth we are seeing particularly in the u.s.? it seems like the rally is once again so continue to be led by the magnificent 7. any risk around a bubble? isaac: it is not the full magnificent 7 anymore that is rallying -- [laughter] we are seeing real differences between these. so i think that is a really difficulty that the market is facing. if you look at what is being priced in earnings over the next 12-24 months, we need to see a genuine, strawberry acceleration in earnings growth. at the moment, that is not

coming through from sales, it is only being supported by an expansion in margins and that is being helped by a retrenchment of jobs. so it doesn't feel like a particularly positive environment for equities or one where we should expectancy breadth widening out. . it leaves the market vulnerable at these valuations. i think it is stretched. . . we might see leadership from two or three companies this year, but if the other four or five in the magnificent 7 and generate the earnings that the market requires, then there could be some punishment doled out by investors. annabelle: we have the rba decision a head in the next few hours. not expecting a change in policy, but a lot of the focus is on the tone that will be struck in that conference. what are you expecting and also from the dollar reaction off the back? isaac: i think the rba will try to be firmly neutral and interdependent. the idea of further rate hikes

-- and data-dependent. i think the recent data report put water on the idea of further rate hikes. , on the other hand, there is no evidence that rba can point to to say that they need to cut rates yet. that means we will have i think a fairly neutral rba for some time and that will provide some challenges for the aussie dollar. we have already seen that. the whipsaw in consensus views around the aussie compared to last year, is very weak started today are so far. from our perspective, $.60 is more likely than $.70 in the near-term. that means you have 5% or so that could give way if the rba is at least more dovish than what the market is preparing for. annabelle: that was isaac poole, global cio and portfolio manager at oriana financial services.

10 minutes into the session so far. a look at some of the movers we are tracking. these are some of the cosmetic stocks listed in japan and also in korea. the reason we are tracking this is because we had estee lauder results yesterday that that came in better than expected. it is also cutting 5% of its workforce, a restructuring program going through. investors really liked that restructuring program because shares rose 12% in u.s. trading, the most since august of 2019 separately, we had. black still considering a blackstone for another company -- blackstone, considering a bid for another company. cosmetic stocks gaining here. . let's look at the chipmakers and suppliers in this region. here we are seeing again, moves to the upside. this after we had a semiconductor company reporting fourth-quarter results that beat

expectations, and they gave an outlook that was seen as better than had been feared. quite a significant one. we had seen mixed views from chipmakers so far this earnings season. you can get a roundup of the stories you need to get your day going in this edition of "daybreak." bloomberg subscribers, go to dayb on your terminals. it is also available on mobile, on the bloomberg anywhere app. you can also customize the settings as well for the news on the industries and assets that matter to you. this is bloomberg. ♪

annabelle: china is taking further steps to stem the market rout that has hit small-cap stocks extremely hard. it is tightening restrictions on

smaller institutional investors. let's bring in our china north asia correspondent stephen engle. perhaps these steps, even if piecemeal, are still needed. stephen: there is a lot of factors that play, but the main things i am looking at is obviously, the national team, if you can call it that, is probably coming in to help support, you have seen that in the northbound data flows, some onshore funds coming in through hong kong northbound, boosting the csi 300 by the close. so we have seen that. that is essentially what the data is showing, china equity benchmark rebounding. eight out of the last 10 sessions have seen inflows into the mainland. shares from the northbound program. the csi 300 index saw intraday rebounds just as northbound fluids started trading around. so that is not just anecdotal

evidence, that is pure data-driven evidence that there is a sort of national team trying to prop up the a share market in shanghai and shenzhen. the other side of the story is much to the neglect, if you will, of the small caps. csi 1000 is a different story than the csi 300. bring up the chart year to date, down 27% for the small-cap index. it is also leading to the angst among retail, younger if you will, investors in shanghai and shenzhen feel like they have been absolutely obliterated in the markets and that it is a casino as we head into the lunar new year holiday. people's paper wealth has deteriorated. that is something obviously the government is worried about. let me talk about the piecemeal new efforts we are hearing from sources, saying that the chinese government and regulators are trying to take or they are taking, to essentially boost

sentiment and put a floor of to this fall on the market only to what is going to be sort of a stock stabilization fund. we just don't know how much that is going to be. one academic at china's academy of social sciences yesterday essentially said, it needs to be upwards of 1.4 u.s. trillion dollars, 10,000,000,000,000 yuan. essentially they will put caps on swaps by clients, essentially limiting the way for china-based investors to short hong kong stocks. in hong kong shares are down 9% this year, the hang seng index. at the hang seng index. at the same time, some chinese brokerages that use the channel to buy mainland shares for their offshore units have been told not to reduce their positions so that is going this way,, again, trying to abort the a-shares market.

some corned hedge funds meanwhile, have been -- quant hedge funds meanwhile, have been banned from placing orders completely. this is what is called a direct market access strategy. is believed to have essentially amplified what i talked about earlier, the selling off of these small-cap stocks. haidi: our chief north asia correspondent stephen engle that as we count down to the start of trading in chinese markets. here in australia, the reserve bank is widely expected to hold rates at the 12 year high and maintain a hawkish stance against still a limited insulation. let's bring in our economics reporter swati pandey for more. what are we expecting? certainly a bit more scope for volatility? swati: we had last week, the fourth quarter inflation report which came in weaker than expected, and that really sparked a rally in bonds and

drove market sentiment towards kind of like pricing in rate cuts already. the rba is not going to do that, they still have a tightening bias until december when we last heard from them. so the question is whether they will retain that or whether they will often that and make it more neutral. that is what investors will be really looking out for. haidi: what about the expectations for rate cuts? do you expect to see governor bullock taking a lead out of the said's labeled and pushing back against those rate cut bets -- out of the fed's playbook and pushing back against those rate cut bets? swati: australia is expected to be the last of the dollar bloc countries to begin cutting interest rates.

that's because at 4.2%, inflation is still above the 2% to 3% target of the rba. australia also lags its counterparts in the rate hikes cycle. the gap between the fed under rba's rate hike is about 1%. so that is how slow the rba went . also, australia's productivity is the most of the weakest in the developed world, productivity growth. another reason why inflation is expected to remain elevated in the country. all of it points to the fact that it might be too early for the rba to start talking about rate cuts. haidi: the rba put in place some of the recommendations that came from the independent review. more communications, and updated forecasts instead of waiting a few days. there is a lot of information to take at once. swati: yes, at 2:30 will see a

bunch of headlines from the rate decision to their forecasts for inflation, gdp employment, forward guidance, so yes, there is a lot. and like i mentioned earlier, we haven't heard from the rba in two months so there's a lot of anticipation around how their thinking has changed since the start of the year. the statement will be signed off by the board and not by michelle bullock. there is also the probability that that statement will completely change or that they will rewrite it. that is a possibility as well and that does add to the volatility. haidi: exciting time. our economics reporter swati pandey, here in sydney. more to come, this is bloomberg. ♪

haidi: the chicago fed president, austan goolsbee says he would like to see more favorable u.s. inflation data before interest rate reductions can begin. he also 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've got gdp numbers better than expected. at the same time, we have had inflation better than it acted, too. . in the last several months, we have really quite good inflation report right around or even below the fed's target. so if we just keep getting more data like what we have gotten, we are well on the, i believe, we should be well on the path to normalization.

>> i understand you don't want to tie yourself down, but is there much of a chance of a march move? the markets think 18%, and others think that is even high. >> michael, as i sake, all we need to do is keep getting information like what we have been getting for the last seven months, where inflation on a slow basis is absolutely under control and is in the range of our fed target. stand for free keep getting a strong quantity numbers, that is to say jobs numbers, gdp numbers, growth numbers, where in mission goes down, in the combination of view, that is not supposed to happen. so, we would have to be entertaining the possibility that we are entering a period like the mid-to-late 90's where you had activity growth faster than expected, faster than trend, and that opens up some

new possibilities. >> scott of cbs last night said that powell suggested that rate cuts would likely be a quarter, maybe a half of the-percentage point at a time. that doesn't appear in the transcript. was a half percentage point cut discussed in the meeting? gov. goolsbee: as you know, we don't report on what is discussed at the meeting until the transcript comes out. our standard way to think of it from the fomc, is more like what is in the summary of economic projections, which comes out every quarter. the last time that came out in december, you saw that the median three rate cuts i.e. 75 basis points for the euro 2024 -- year 2024. michael: is there a situation for a recession or perhaps some market earlier where you, would consider a 50-basis point cut?

gov. goolsbee: look, i just 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 or what would happen to make the rate cuts more different than what they have been in the past. annabelle: that was the chicago fed president austan goolsbee, speaking exclusively to bloomberg's mike mckee. let's turn to some political stories we are tracking today. israel's foreign minister says time is running out to find a diplomatic solution. israeli forces have exchanged fire with hezbollah almost every day since the hamas attack of october 7. israel has said it is prepared to open another warfront it has does 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 u.s. border restrictions and unlock billions of dollars in ukraine aid. he used social media to call it a death wish for the republican party. speaker mike johnson says the senate compromise is dead on arrival in the house. the bill to crackdown on illegal border crossings also includes $60 billion for ukraine. we will have plenty." -- we will have plenty more ahead en "daybreak: asia." this is bloomberg. ♪

, haidi: we're just about haidi: half an hour into the start of trading in tokyo and seoul. quite a tepid day across asian markets. it comes as we are headed into that rba decision. before that, we are getting retail sales numbers out of australia, excluding the impact on inflation, quarter-on-quarter for the third quarter, coming in at 0.3%, higher than expectations of just 0.1% and also extending gains from 0.2% in the previous quarter. this, as we see a mixed picture when it comes to the broader economic outlook. 0.3% gain. considering the fourth quarter really helped, the critical holiday and festive period, perhaps not too much of an impressive week. heading into the rba decision, not expecting any change when it comes to rates. but all focus will be on governor bullock's press conference at 3:30.

the updated forecast which come immediately, rather than a few days after the decision. and any signaling around with that there is a pivot, a potential neutralizing of that hawkish stance yet to be seen. look at how all of this is feeding through to help markets are trading at the moment. the big story has been the selloff in bonds in the u.s. which has carried through to the asian session. the renewed pressures passing through from overnight. quite a bit of downside across the board. the board selloff with the nikkei is down 0.5%. also seeing weakness in south korean stocks as well. a lot of relief when it comes to samsung, we will get detail on that shortly. here in australia, and downside of about 0.8%. big tech, miners are some of the biggest laggards, but it is a pretty broad selloff. it is good news when it comes to south korea's biggest company not lifting the broader market.

annabelle: that's right. let's get more on that because samsung's millionaire executive chair jay y. lee will continue leading the company after his acquittal on the stock many commission charges. a court found insufficient evidence to prove he misled shareholders in the merger of two samsung units in 2015. it lifts a weight off the world's largest maker of memory chips amid a global downturn and an increasingly challenging ai market. for more, let's bring in so obama, national university professor -- seoul national university professor park sangin. your initial reaction to that verdict. park: i was in shock. i didn't expect an innocent verdict from the judge at all. because the case is related to previous -- delivered by the court best korean supreme court

in 2017. so the supreme court of south korea actually found -- guilty of bribery and embezzlement, using the merger between samsung and cheil industries. but yesterday the judge actually denied the precedent decision by the supreme court. it is really shocking decision-making for me. annabelle: to caveat, the court as well saying that they found insufficient evidence to prove that he misled shareholders. what do you think that it tells us about the influence of -- in korea? park: well, after the protests in 2016 -- 2015, we expected

that something would change in korea. people recognized the corruption ties between the korean government. people asked for change. but the administration took the power after the protests and didn't do anything substantial. after president yoon came to power, actually, he was first in charge of all of this bribery, the prosecution case. he suddenly changed his attitude. he became very -- friendly. all the social momentum and political momentum petered out. at the same time, they have a campaign against the --.

suddenly this voting from the first trial on stock manipulation just happened. so it's a big swing, and it indicates the increasing and substantial influence of the korean -- on the legal system and politics in every aspect of korean society. haidi: professor, obviously, the acquittal and the removal of the threat of jail time comes as a huge relief for the company. you think it solves all of samsung's problems? park: not at all. the problem is the issue of whether jay y. lee's chairmanship position -- it is

more a problem of legacy for samsung. the industrialization of south korea. [indiscernible] they believe that his competitiveness. that is competitiveness. but in the world of the open innovation, it is not a valid strategy is all. the problem of samsung electronics is, due to the nature of the competition in the industry itself, the competition of innovation in the industry, the income it is in a weak position. substantial innovation has been done by the challengers.

there is nothing to do with whether lee is in jail or is chairman at the table. haidi: you say that this may, i guess, in a way, reflect or change the political mood or the political environment. there has been commentary that it is hard to avoid the perhaps out of the consideration was economic, given the economic have to of samsung. what is your view on that -- the economic heft of samsung. what is your view on that? park: the consequence of the campaign, the politicians and the media as a whole, because there is evidence of [indiscernible] power in korean society, they have huge influence on politics

and the media. the media tries to form a favorable view. but, as i mentioned, the problem faced by samsung electronics and the korean economy in general is not over whether a person is in charge or not, it is more about fundamental change within, the relationship of the developing country established in the 1960's and 70's. we have to productive and open innovation. we have to have more flexible economic system. we have to have encouraging entry in the industry. the korea status quo actually has a huge -- is a huge barrier to the industry. it goes against the idea of the innovation.

, i went to move on to what we're are seeing with the support rate for their korean president. it has fallen to the slowest level since april. continuous uproar over these questions over whether the first lady may have inappropriately received a handbag. do we see this impacting what we see in the april election? park: well, yes. it is a real campaign issue. actually i believe it's very inappropriate for the first lady to take that expensive handbag from a person who she claims is not familiar with. possibly it's a violation of korean law as well. so we need some kind of police investigation on the possibility as well. above all, the first lady has to

apologize to the people of korea for the first lady's inappropriate behavior. the way that they can avoid this campaign issue in the upcoming general election. haidi: professor, great to have you with us, park sangin professor at seoul national university. plenty to come from "daybreak: asia." s omberg.

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annabelle: south korean notes tied to hong kong stocks are facing a $7.7 billion maturity deadline by the end of june and this could add to the selling pressure on the worst performing stock markets in the world. over asia stocks reporter john cheng joins us in hong kong today. tell us, how can this become a risk for the hong kong stock market? john: we are looking at $7.7 billion, quite a big number for hong kong stocks. it represents about two thirds of the total amount of k orea-yield securities maturing this year. what happens is when they mature, the issuers will have to unwind the hedges, as in they

will have to sell index futures. that will, of course, create selling pressure for the futures market and that selling pressure can also spread to the spot market as well. it's adding to another headwind for the hong kong stock market which is already facing a host of issues -- china's economic slowdown, u.s.-china tensions, and this is another risk that investors will have to contend with. haidi: it has become a huge issue in korea. massive potential losses. what do we know? john: these securities are sold back in 2021 at the peak of the hong kong stock market. and we all know the story that follows, the hang seng china enterprise index has since fallen more than 50%. these securities are maturing this year and that means investors will be sitting at huge losses. there could be potential misconduct when the korean banks

sold these securities because the markets had fixed income products, and investors, not knowing the high risk of these products, they bought into this and now they are sitting at huge losses. some regulators are taking actions, looking into potential misconduct by banks and some banks have announced they have stopped selling these products altogether. so it has become a huge issue in korea indeed. it also highlights how far-reaching the china stock rout is. it's not just limited to china and hong kong, it is also spreading to other financial markets in the world. haidi: our asia stocks reporter john cheng there with the latest. we have more to come here on "daybreak: asia." this is bloomberg. ♪

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annabelle: toyota is releasing its third-quarter earnings on tuesday, with steady car demand and recovery supply chains to boost profit. from our let's bring in our transit reporter, nicholas takahashi, in tokyo. big earnings to watch for today. talk us through the headlands we are expecting. nicholas: analysts are expecting

high profits during the third quarter last year, study global demand for vehicles, as well as record-breaking sales and many factoring on toyota's side looking pretty optimistic for the carmaker. the main question is whether it raises its fiscal forecast of 4.5 trillion to 4.7 trillion dollars that analysts expect. manufacturing, like i said, has been at a record high over the last calendar year. toyota was able to beat volkswagen ag for the fourth consecutive year and become the world's top carmaker. so things are looking pretty good for toyota, the rest is whether they reflect that optimism in earnings later today . haidi: this, even as there have been challenges, right, when it comes to production and also some safety scandals? john: yes. so the world's top carmaker is ensnared in a pair of scandals right now. the first one emerged in december with daihatsu, which is a popular lightweight truck

maker in japan. the second one last month with toyota industries which is a major engine supplier for toyota and they both concern certification testing standards which are notorious for being strict in japan. but these trace back years, if not decades to some extent. so the question remains how much this will cost toyota, what will it do to real and is it business empire, and how does it get over this and regain customer trust? annabelle: toyota is not the only japanese automaker reporting in the next several days. what are we expecting from the lineup? john: strong demand across the board. japan sales have been pretty robust for most japanese carmakers including toyota, honda and nissan. we are seeing aggressive competition in china with the cost towards ev, leaving a lot

of japanese brands in the dust. it beat tesla -- byd over tesla last year. toyota is falling further behind in that shift. haidi: bloomberg transport reporter nicholas takahashi there in tokyo. let's look at some of the other corporate stories we are following. shares in pal until it jumped in late trading. the software and analysis company gave a better-than-expected outlook for 2024, citing strong demand linked to artificial intelligence, income and revenue for 2023 beat expectations. management is saying they are rebuilding the company to meet ai demand. threaded revenue's for 2023 rose 20% of the preparest for the most anticipated ipo in the u.s. -- reddit. his ceo said they made profit in the fourth quarter. the social media platform is done investors that revenue topped $800 million last year. boeing has discovered a new problem with holes drilled into

the fuselage of its 737 max jets. it says the problem originated with the supplier, and it will require work and it will require work on about 50 undelivered 737s. the company did not identify the supplier, but the supplier says it will conduct repairs. blackstone is said to be considering a bid for locked on international. sources say it is considering the possibility of teaming up with the chairman of the skincare company. the hong kong listed company has a market cap of just under $5 billion. shares of ong semiconductor jumped in late trading after the company beat expectations in its fourth-quarter earnings. the ceo spoke to us about the outlook for chip demand from the automotive, sector and why he is

still bracing for slowing global demand. >> what differentiates on s emi, for the last six quarters, we have been taking action to match and become more in line of what we see for demand, both industrial and automotive, and the third for earnings, i started talking about automotive softness, inventory digestion. that extended and, therefore, was not a surprise to what we announced today, it was an expectation, better-than-expected. nevertheless it was a softness we in the company have been very disciplined in addressing to get us through it better than our peers. >> more criticism from truist securities this morning, that there wasn't anything said about the outlook and that what happens next in those and markets. you just said that we rebalance to make sure our outlook balanced demand on industrial and automotive, but going

forward, what are you hearing from those and market leaders and ceos about what they think demand for the industry will be in 2024? >> for us, that we we are managing 2024, we're not managing for a recovery, which if you take where we are today as a base, 2024 will be basically down in all end markets versus 2023 which was a good year in the lower the markets. so industrial, automotive, and other end markets will remain soft. sabmiller isaiah and impacts margin. we would rather be in this spot rather than prepare for a recovery that doesn't happen. now we have a correction mid-year. we are taking, again, and much more disciplined approach which worked very well for us in q4 coming into q1. >> we used the case story of

the carbine. caroline points out that we think we will have growth in 2024, it will just be slower growth. growth is decelerating in global ev demand. does your business reflect that? >> yes. i spoke about it earlier today. the industry still projects khii number four ev growth, 30% to 40% from it what i believe based on customer engagement but really based on some of the leading o in the automotive industry, what they projected for their growth into 2024, we look at it more as a 20% to 30% growth. annabelle: that was the on semiconductor ceo hassane el-khoury speaking to us on bloomberg technology. the asian chipmakers and suppliers here in asia. it's a bit mixed what we are seeing in the session so far.

but as we read, that company is reporting fourth-quarter results that beat expectations. we saw on 's shares climbing significantly as did the philadelphia semiconductor index. the other group of stocks we are tracking in the session today are old the cosmetic names in asia. these are moving mostly to the upside. we had estee lauder putting out its earnings overnight. those were better-than-expected. it is cutting its workforce slightly from it a restructuring land. investors like these things. and you mentioned the story around l'occitane, blackstone considering a bid for the company. haidi: and we are watching the rba, just 3.5 hours away from the press conference under this new revamped medications regime from the rba.

officer shaun lucas when it comes to trading -- off session lows when it comes to trading. big tech is the laggard. the real estate and materials also suffering badly, over 1% apiece down. we saw a bounceback in australian bonds, potentially signaling there are some bond traders that expect possibly at pivot-minded rba, may be that hawkish tone will not be maintained. we will have to wait and see in the next few hours. suddenly a bit of an ability to for the aussie dollar as we had -- a bit of vulnerability there for the aussie dollar. that is to come. that is it for "daybreak: asia." our markets coverage continues. this is bloomberg. ♪ d the right plan for my team. i think i'm going to need new glasses. no problem. you're covered. choose benefits without the mess.

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