haidi: welcome to "daybreak: australia." i am haidi stroud-watts in sydney where markets have just come online. r a reality check, hotter than expected inflation triggering a slide in stocks, and bonds and traders reducing bets on the rate cut for july. lyft shares soaring after the bell as the earnings outlook exceeds expectations. airbnb, though, slipping despite a strong quarter and an optimistic forecast. it was that reality check that the feverish bests on sooner than expected rate were paired back with traders ratcheting down expectations for a cut before july. we'll treasury yields soaring after the inflation report telling us that price pressures remain sticky in the u.s. this is the picture across the start of trading in asia said, slide.

-- set to slide. downside. we will be following the losers after that hotter than expected cpi print triggering that selloff overnight. australian yields also playing catch up down when it comes to what we saw -- playing catch- down. we have seen swaps contracts referencing fed policy meetings, which, as of early as mid january and priced in a rate cut in may, at 175 basis points of easing by the end of the year. they have been turned upside down with the odds of a may cut now down to 32% from 64% earlier. the aussie dollar is unchanged at the moment, 64.53. when it comes to futures looking ahead to the start of trading in japan, equity futures for tokyo seeing declines of more than 1% potentially when we got to the open. also watching jgb's.

two-year treasury yield surging to levels we have not seen before that december central bank. -- central bank pivot. the dollar, a three month high. dollar-yen above the 150 threshold. that is the threshold we would typically potentially see some room for intervention from the boj. and, in fact, we are getting some remarks from japanese officials at the moment. the currency chief, speaking in tokyo, saying the rapid fx moves have had a negative impact on the economy. appropriate steps will be taken. the yen edging higher as he is speaking. he is saying they are always ready to take measures, 24 hours a day, 265 days a year. the debt 10 eur -- that a ¥10 move over one month is considered a rapid one. the yen is a key story.

quick story when it comes to you as futures, potentially may be a recovery across the growthy end of the spectrum. nasdaq 100 looking more positive, of course, some of that could see an impact given the rally we have seen in tech now that expectations of easing have been pared back. mostly higher trading for oil. bullish demand outlook for opec helping surpass that key technical level which has been a ceiling for trading in oil. back to the inflation numbers with our global economics correspondent, enda curran in washington. this was always a concern, right, that this final leg of the journey would be stickier and more volatile. what was the main take away from the numbers? enda: it was not a good inflation reading. headline and core came in hotter than expected. prices for food are up. prices for shelter up, prices

for health care up prices for car insurance, up. all the staples people spend on on a monthly basis, on heading the wrong direction. the good news side of the ledger is that there are hopes of disinflation, in particular, energy. but the bottom line is that this year of disinflation, this narrative has been given some pause for thought today. the last mile will be the hardest. consider the backdrop that the jobs market is strong, consumer sentiment is strong, and now inflation, remaining quite sticky, it demonstrates just how hard it's going to be to get information back to the 2% target. haidi: what are the implications for the fed? we know their repricing going on at the moment for markets. enda: the said, in the defense, they have said they will be -- the fed has said they will be

careful about rate cuts. jay powell said they have to be confident that inflation is coming back to where they want it to be. if you have to wonder how confident they will be after today's reading. remarks were pushed aside. traders in money markets now tossing the bets around whether it is june or july. the point is that it speaks to the idea that those near-term fed rate cuts don't look likely now. there may be someone all factors in the january reading, some seasonal impacts behind it, but if we get another sticky reading in february and also march, the whole said disinflation story will have a different hue. people are pouring water on near-term fed rate cuts prospects. but if we get a few more reports like this, it will become an even more uncertain picture as to whether they can actually cut can actually cut. haidi: it's a political

year. does this eventually become a political issue? enda: it has to feed them the political cycle here and voter opinion. we are getting open close including the bloomberg open era polls that says voters in swing states' concern is the economy. now you have this inflation print saying people out there actually paying more in january for their goods than they would have in the previous month. although that doesn't necessarily lend itself to a verily content voter base. we know it is front and center in this campaign. as i mentioned earlier, just like the fed says, if we get a few months where it looks like inflation will stay elevated at best without getting into the argument over rehab so the rate in, but will drive home the cost-of-living story to voters that it isn't going away and you will see it be a part of the debate. the administration will push

back, to try to iron out these issues in the economy. but here we are in january of an election year and they inflation data still doesn't look comforting. haidi: our global economics correspondent enda curran there in washington. let's get the markets reaction and perspective from our next guest, hebe chen from ig markets. expectations -- i suppose the irony here is that the signaling from the fed was that the last leg of the cycle was not going to be a 1-hike. do your expectations still hold when it comes to the timeframe? hebe: today's cpi is definitely hot, but i don't think the level is quite a surprise permit because on the one hand, we do see that historically get

into mild inflation is bumpy because we know that the sticky components are left last. on the other hand, i think the immediate direct impact of today's cpi is it officially and convincingly moved the march cut out of the table, what the fed has been trying to convince markets of the alaska public. -- convince markets of the last few weeks. we are going to have another inflation indicator coming through by the end of this month, pce. after that, i think it will reflect all the march meetings projections for the fed. so between now and june, there is quite a lot of uncertainty. at this stage i will say that a june cut is not off the table you. haidi: how vulnerable are valuations, particularly for u.s. stocks? hebe: today's reaction is

reflecting that the market has been pricing in the goldilocks scenario. it is now in question. the market has been pricing in march. now it will be pushed back and that will impact market sentiment. especially given has seen the u.s. dollar coming to such a high, lofty level. a bit of the cut. however, given -- the market shifted to a new -- [indiscernible] also demonstrates stress in the u.s. economy. when the market gets into the really, i think some of the bumpy path for the investors. haidi: it is earnings season in australia as well. whatever we get out of this reporting season is being overshadowed by the inflation picture and the expectations for the rba here.

hebe: yes, exactly. we already have a couple of earnings from australian companies. the key takeaways is we are seeing deepening -- especially for companies that retail. profit jumping 20%. this company profit jumping for the percent. the suggestion is, that even though inflation has dropped substantially in the second half of 2023, the reality is that now, this will squeeze the company's profitability. it's not just coming from rising material prices and labor prices , but more into the trending consumer behaviors. that will likely have a lagging impact on the profitability for the austrian business. -- australian business. haidi: i want to get your views on japan and the yen in particular now that we have seen

strength being reinjected into the u.s. donna. we have seen comments given the big move in the yen from japan's currency chief saying that they are in close medication with the bank of japan. they don't take fx actions based on specific levels, but that the 10-yen move over one month is rapid. how does this play into what we see in the markets given the weakness in the yen. do we expect more intervention? i think the weakness of the japanese yen was quite longer than expected. we do here -- message we do hear a lot of messages from the bank of japan that they are still patient about monetary policy. , on the other hand, from the economic point of view, we see that strength of the japanese economy, but we also see some variation. we are seeing the japanese economy deepening in the final

quarter of 2023 and then picking up a little bit, but not as strong. for the bank of japan to say that we are exiting the relaxed policies and support the economy, that is the priority they're looking for. for all this consideration, i would expect the weakness of the japanese yen will probably last longer than we expected and most investors hope for. haidi: always great to chat with you, hebe chen, market analyst at ig. still ahead, the world's biggest one-day election is underway, with around 200 million indonesians choosing their next president and parliament. we are live from jakarta, next. this is bloomberg. ♪ payroll compliance, for sure. gusto automatically calculates and files my taxes for me.

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♪ haidi: more than 200 million indonesians have again heading to the bows in the world's biggest single day election. through candidates are valiant to succeed president jokowi and set the course for southeast asia's biggest economy. our chief correspondent for southeast asia haslinda amin,, is covering the election from jakarta. set the scene for us, what are the expectations, the mood from

jakarta? what are we looking ahead to? haslinda: to start with, haidi, it's a massive and complex election, 200 voters in an archipelago with 17,000 islands, 700 knowledges, three different kinds owns. to give you a sense, we have had millions of election officials getting deployed and some have had to leave days beforehand to get to their locations on foot, on horses, even in helicopters to get to the most remote areas to ensure the voters get voting papers. it's a massive undertaking for the country, it is complex, and as complicated as can be. we talked about the three candidates vying for the top job. it's not about just using the president, but also the government, local leaders as well. it's a huge election. now it is prabowo subianto's

election to lose, he is the favored man to be the next president to replace joko widodo. he has a pretty checkered past, back in the late 1990's, he was the man, in general links to the adoptions of student protesters -- abductions of student protesters who did not appear again. he is also linked to the human rights violation spin or new guinea and east timor. he has always denied the allegations. but he was let go as a general. he spent a year in jordan in exile and also was on a blacklist for the u.s. in years until he became the defense minister under joko widodo's second term. samantha is quite controversial, but what a stunning turnaround. he has been backed by joko widodo himself and hands his, popularity, remember, an endorsement by joko widodo, even

though it is unofficial, means a lot. joko widodo in his final term has managed to garner a rating of more than 80%, a very popular president and that has somehow transferred to the man of the hour expected to win in a single round. remember, winter needs about -- at least 50% of the national vote -- a winter needs at least 50% of the national vote about, 20% of the vote in the provinces. a massive task that if he manages to win in one round, it will be a similar continually to markets. haidi: prabowo is the continuity candidate and whoever wins inherits an economic behemoth in terms of how the antigen economy is going. what are the issues as we look towards the post jokowi form era ? haslinda: well circuits about reforms and about continuing

with his policies. remember in the last 10 years of jokowi's administration, he has brought stability. stability to the economy. . it has grown on average about 5% . he has managed to attract a lot of foreign direct investment. last year alone, he attracted $50 billion a quarter of which went to nickel downstreaming, if hurley for the ev sector. he has built more in infrastructure than all the presidents before him put together. now what investors want to see is continually. the three candidates broadly have promised to continue with his policies with tweaks here and there, but what investors want to see is jokowi 2.0. better implementation and better jobs being created. remember we had an explosion of a furnace recently which became a flashpoint for the people out

how despite investments pouring into the country, jobs are not there. so whoever wins will have to ensure that better jobs are created and that growth can get to the 7% of the country wants it to get to by 2045. haidi:. haidi: hour markets co-editor desko anchor and chief correspondent for southeast asia , haslinda amin. haslinda is underground for us. you can catch her conversations with opensea group, alvarez & marsal. we will be also with the chairman of the donation financial group later on. another political story in pakistan, it is inching closer to any government after javad sharif was named the next prime minister candidate, nominated by his older brother and the three-time former prime minister nawaz sharif. last week's election saw no party achieving an outright

majority. the top task for pakistan's new leader will be to negotiate with the imf for the new loan program. china is lashing out at a new proposal from the e.u. to possibly sanction about two dozen firms, including three from china accused of aiding russia's war in ukraine. so more, let's bring in our chief north cars and stephen engle what do we know -- chief north asia correspondent stephen engle. what do we know? stephen: we know china has been trying to improve its relations with the e.u. at a time when there have been a number of different probes back-and-forth between the two trading blocs. there was the electric vehicle probe launched by the e.u. on china. china also having its own investigation into e.u. liquor products. then there is the issue about semiconductor equipment, machines from asml. the netherlands government teaming up with the u.s. to help limit the advanced chipmaking

equipment getting into china. so there is a number of different trade issues at the fore of trade relations between the e.u. and china. now we have another e.u. proposal from brussels essentially to thankfully, if approved by member states, to put sanctions on a number of firms around the world including in china, but also in hong kong, india, turkey, syria and others. essentially trying to punish firms using third parties, third countries, essentially, to get equipment for some sort of materials, this is what is alleged, into russia to aid in its war in ukraine in violations of sanctions. so there could be potentially more sanctions. china's ministry of foreign affairs put out a statement essentially blasting the effort,

saying, "chinese and russian enterprises carry out normal exchanges and cooperation and don't target third parties, nor should they be in feared with or influenced by third parties. beijing will take necessary measures to safeguard the legitimate right and interest of chinese enterprise." basically that statement they use words like "firmly oppose" what is called "illegal sanctions." keep in mind the e.u. try to do this before, but member states, their fears were assuaged by beijing's insistence that they were not providing any kind of military aid through government channels or its enterprises. to russia, to aid its war in ukraine. they backed off on that. that is why this is such an interesting development as the e.u. pushes forward potentially to put sanctions on at least three chinese companies. haidi: our chief north asia correspondent stephen engle there with the latest. and you can get a roundup of all

the stories you need to know to get your day going on this edition of "daybreak." terminal subscribers, go to dayb . it is also available on mobile, in the bloomberg anywhere app. you can customize those settings so you just get the news on the industries and assets that matter to you. this is bloomberg. ♪

you haidi: watching deborah kostroun there haidi: . the latest corporate stores were following, lift limit gained as much as 67% in extended trading -- as much as 18% in after-hours trading. margins are expected to expand by 50 basis points, not the 500 basis points written into an earlier press release. the uber rivals saw bookings rise against the average

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haidi: take a look at how we are attracting so far in what is expected to be a difficult session given we saw the selloff on wall street, the reality check, if you will, on that hotter-than-estimated inflation data. that is disputed to percolate through to asia. we are seeing a downside of a 1.2 5% in australia. . pretty robust earnings overall, but rearseat the broader macro expectations picture playing a bigger role in particular are watching the likes of cba trading in australia after we saw profit and dividends topping estimates. this is a year that is dominated by politics. we are headed to indonesia's election. our chief international correspondent for southeast asia, haslinda amin is on the ground in jakarta on election day with a guest. has. haslinda: it kicks off at 7:00

a.m. local time and ends at 1:00 p.m. although 200 million voters will have to vote during that seven hour timeframe. let's talk about, the policies with others undergo xena in -- with alessandro gazzini, a global consultancy at alvarez & marsal. this appeared at a short time. >> 70,000 voters a minute you do window. larson archipelago. it is a feat of electoral logistics itself to pull this off, and the government has proven in the past and will prove today that they will pull it off. haslinda: it's about continuity of policy. will we see that regardless of who wins? d'allesandro: i think you will see the jokowi sauce, may be variants of that will come out

depending on who makes it in the final run to the president, but broadly, the pillars of the development plan and so on our set. the candidates themselves also participated in government up to a few months ago, most of them. even the most opposition candidate,, anies, himself, was in the government. his track record is not a revolutionary changer of setups, right, so broadly, i would say that the scenario is haslinda: painted. the man favored to win is prabowo subianto, a man with a checkered past that has seen a turnaround. he has said time and time again that he would like indonesia to go back to the 1940 five constitution. what does that mean and, what is the risk of that happening? alessandro: not too sure what he means by that. i guess it is back to the roots

of stronger nationalism and stronger pride of country, i guess. economically, i don't know what that would mean implied today, but broadly, he has proven to be in government at least, a very safe minister. with tensions per hub with the ministry of finance in terms of spending. what will be interesting to see if he does turn out to be elected president, is, how will the relationship evolve between him and jokowi? what mof and back of indonesia infrastructure and leaders will he place? because the truth of the matter is that indonesia has had successful policy also because of the sturdy and successful management of the macro fundamentals. so what is he going to do there? and will he have the skill jokowi demonstrated in essentially controlling

parliament? so he will have to, that is a scenario that we will see in the coming months. haslinda: which are the policies most important for investors? i mean, jokowi maid ev a priority, infrastructure a priority, he made moving the capital from jakarta a priority. are these the ones investors are focused on? alessandro: i would say investors first of all, are focused on macroeconomic stability of the country and rule of law. the country is full of potential so investors are moving not just on the infrastructure, they are moving in on digital assets, moving in on consumer good companies, and sentiment is generally positive. first of all, to ensure that the macro fundamentals of the country and wealth is being distributed in the country is the main point. then, of course,, large

investments need large programs. jokowi went through the first cycle of energy investments -- -- you may remember the 30 gigawatts program. unfortunately, that was done in cool. that is a problem indonesia needs to solve, coal. investors piggyback on that. haslinda: haslinda: we talk about how we are also looking for jokowi 2.0, people want better policies, better job creation. there has been the satisfaction that even though we are seeing an inflow, massive info in investments, the quality of jobs is not there. can the candidates, can someone let furball ensure that happens -- -- can somebody like prabowo ensure that happens? alessandro: in the last year and he is navigating 1.5 million new jobs created per year, in a country that has the potential

to look at 6% or 7% growth. . that implies the country needs to create at least 3 million jobs a year. where will they come from? so far, that electoral politics and company has not really answer the question of how, how will i create these jobs, right? that is the big question to be answered. because at that growth rate, you need those 3 million jobs. are they going to come from may be state enterprise reform? or are they going to come simply from the downstreaming of the processing industry? it will not be sufficient because those investments are highly mechanized, they are automated. they will not create jobs for the whole population. haslinda: prabowo subianto is favored to win, 72 years old and not in the best health. what is the risk of having him as president? alessandro: of this me, if his health should have challenges and problems, right, the rule of law here is for the vice

president to stefan. and the vice president is, of course, the son of the current president, so i would say in that scenario, we would have a much stronger jokowi 2.0, de facto really, father and son governing the country. that is what i said in the beginning. it would be interesting to see how, if and when elected, prabowo manages this relationship with jokowi, how it will evolve. who will be really the fundamental decisions, and how will prabowo set his course, rather than just simply replicating jokowi's vision? haslinda: thank you so much for your insights, ellis undergoes an. big election here in indonesia, 200 million voters set to cast their votes starting from 20 minutes from here. haidi: it's going to be quite the day. our chief international

correspondent for south east asia haslinda amin is in jakarta. we will be knew more when it comes to the indonesian elections here on bloomberg tv. you can catch our conversations with the former indonesian finance minister, and the chairman of the board of indonesia financial group as well. that is later on. still ahead, the benchmark index is edging closer to an all-time high, the nikkei. we will take a closer look next. this is bloomberg. ♪

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>> this is a bit of a bruising cpi report. >> there are certain aspects of this report which push numbers higher. >> it's not good news, would have preferred to see something less than that. >> it's not bad, it's just cooling more slowly. >> that last mile of getting down to target after rapid acceleration is hard. >> there is a lot of think the fed is not going to like about this. >>. >> it does complicate the messaging and the decision-making for the fed. >> when i have to punt on rate cuts further in the year. >> i think the fed has been trying to guide the market narrative to expecting less. >> they will not be cutting rates as much as markets expected. >> is the rate cut going to happen in march? knowing what i know right now, probably not. >> three rate cuts is what we get. >> may is still a long way away,

we still have a lot of data between now and may, and we will see how the totality of the data pan out between now and then. haidi: bloomberg tv guests reaction to the latest information numbers. let's look at the reaction, we had the u.s. dollar baritone towards or through month-high with the repricing of fed expectations and the pullback of easing expectations front-and-center in terms of the trading themes for today. dollar-yen is above the 150 threshold which is significant. that typically is where we have seen the risk for intervention rise. we did hear from japan's top currency chief earlier. with a reminder that a weaker yen is not a one-way bet. don't be complacent, if you will. aussie dollar, 0.645 two. also watching dollar-china as we head back to the start of trading after the lunar new year holidays. we are expecting that if the

golden dragon index in the u.s. is any guide, that we will see their assumption of the new year of the dragon with some downbeat sentiment. our fx and writz reporter michael wilson joins with more -- on our fx and rates reporter michael wilson joins us for more. michael: at this stage, it is just a number. 150 two is probably where people will be seeing the line drawn in the sand by masato kanda. he made comments today, but i think it is more of a drive-by, i don't expect it. he was just checking the markets reaction. he was not expecting a 100 point drop or anything like that. it's like when countries fly into other countries' airspace, they just want to see whether they scramble or they just keep watching on the radar. we have been down 20 points and up 10. the ink on that hot u.s. inflation print is still wet,

market still repricing. it caught everybody by surprise. so today, for the day after that print, i can see the ministry of finance fully the trigger. it's not in their interest anyway. what they would like to see in the run-up of policy normalization, they would like to see the dollar-yen in some area like 150 or a bit above. i know that when they pull the trigger, it will probably get a 1000 point response. so for now, they will just keep watching it as markets are as well and if we see a southernmost like people trying to take on a level towards that 152, we may see the jawboning become a bit more serious. their words are very, very well -chosen. so i think we are ok for the moment.

but as we come closer to the bank of japan meeting, that will hold up a lot. i think they want to keep the powder dry until they have to act and hopefully suck that is an and/if choice. i do think they are going to try to catch the markets out at all. they have been similarly what their intentions are all alone. meantime, as far as the cpi print, the 10 year u.s. jgb spread is now up to 360 points. the dollar-yen before was at 147 in late november 2023. so in that spread, we might see a situation like where it was back in november, when dollar-yen was at 150. so the dynamics of the market

are still intact. if we see that spread widening, then people will become a little bit more comfortable with longs. i wouldn't be entering into a long above 150 my self. so if you see any pullback to around that level that 140 9450 it will be but into quite seriously. haidi: we are now hearing from defendants mr. speaking in tokyo, saying that fx moves should stably and rapid moves are undesirable. watching the forex situation with a strong sense of urgency. with reiterating the same sentiment, the verbal jawboning we heard from masato kanda earlier. the weakness in the yen has been one of the supportive doctsnjap. the nikkei 225, again, edging

closer to an all-time high, seeing its biggest advance on tuesday since november of 2022. of a reporter joined us in tokyo. last year was a banner year, we saw a breather for traders having been so bullish on japan. but the recent revival, what has been driving that? >> right, recent momentum is really strong and i think that but a lot of strategist by surprise. they have been hiking their targets for the week. . we are seeing that momentum being driven by the weaker yen that you mentioned, now passed 150 against the dollar. also, the ongoing corporate governance reform and the continuous flooring value for the past five straight weeks. but something special about the recent trend is also the positive earnings from major we

saw, toyota hiking forecasts, also, bank. rising on the armed rally and also the positive earnings. then the chip companies also doing pretty well with their earnings as well. haidi: tokyo electron's share price rising 13% to a record high on tuesday after earnings. what were the drivers behind that big reaction? winnie: so the stock price really surged after the company said they were going to hike your forecast on the strong china demand, which accounts for about half of their total revenue. that really came after how the u.s. decided to have trade carbs around advanced chip technology, -- trade curves around advanced shift ability to stop china from getting that technology.

china continued to purchase these equipment from other companies and that is helping trainees chip companies. a big contrast when you compare that with other china exposed equity names like the factory automation names that really struggled in this earnings season due to the economic slowdown in china as well as the property trouble that we are seeing the country. haidi: haidi: and more broadly, how has the earnings something going so far? winnie: overall, i would say it is pretty good. we are seeing actually more positive, more earnings beats than miss. people looking at the corporate governance reform. for example, major buybacks by mitsubishi and from companies that don't usually announce such information. and also, volatility is quite high at the earnings season this

time. we are seeing stock prices really swinging with the results. people say that is probably also because your being more new investors coming into the japanese market to try to understand what is going on in the market. but i would say overall, it's pretty positive. haidi: are asia r. kelly's reporter -- our asian equities reporter winnie hsu in tokyo. we will get the details on the messaging next. this is bloomberg. ♪ hey, brent! if you had to choose, would you watch paint dry or compare benefits plans? compare benefits. gusto makes it easier to find 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.

haidi: korean airlines is one step closer to occurring a smaller rival. the eu has approved their 1.4 billion dollars merger deal as korean air of first appellate part is to sell parts of the business to competitors on major routes. the merger still requires regulatory approval from the united states. paramount global is said to be cutting 3% of its workforce, after hosting a record-breaking super bowl tv audience. the move was expected amid a companywide restructuring aimed at cutting costs and reducing

debt. paramount's bottom line has been pressured, in part, by the continued loss of tv subscribers to streaming services. bloomberg has learned that standard chartered is considering restructuring its institutional banking arm, the latest effort by the ceo to improve their process returns. sources say the lender is weighing separating the investment bank from its corporate and commercial banking operations. , not bank ceo matt, and say it risks are mounting in the austin economy as the lender's profits -- risks are mounting in the australian economy. margins are under pressure and messaging was not so positive. >> indeed, margins, of course, considered to be the major story. 11 basis points of loss in the first half. . clearly sockets an ongoing story. but as we all know, cba has tried hard to keep that position in that home lending market and they have been linked to discount less than their competitors, so they have

sacrificed market share and that has been a key strategic decision from the leaders at cba. i think people are looking for six to 12 months down the line, how does that continue to be an impact? there is a lot of money on the sidelines that the bank has two potentially do some more on the buyback side. the dividend today at 2.20 five dollars was a bit of -- a bit ahead of expectations. so the, around the economy and margins are really the main focus. it's a tricky one to see how it plays out because the share price has done very well in the last three months. it has run up pretty hard. it has come off 2% in early 20, but it is not a story of suddenly the wheels coming off, this is kind of the incremental downgrade to the numbers. the margins continue to be

pressured and it is a very competitive landscape still for home lending in australia. haidi: pressure on home lending, but in the fixed rate mortgage, are we over the worst? adam: it's reasonable to assume we are over the worst. the cba numbers say that most of the customers have already rolled on. there is a decent chance moore would have to pull over in the next six-nine months away from the pandemic era fixed rate loans, but there seeing a bit less flight of people moving onto competitors. but still, something to keep your eyes on in the next few months. haidi: finance editor adam haigh with the latest on the cba. take a look at how broader markets are trading. we are expecting a follow the loser, if you will, given the reality check we saw u.s. markets have overnight with that harder than expected inflation

print, a lot of realignment and repricing when it comes to the fed easing expectations. interestingly a little bit off system lows -- session lows. watching trading in fx as we get into, five minutes away from the start of trading in japan. nikkei futures looking negative at this point. the yen sitting firmly above the 150 level. just heard from the finance minister just now, talking about the undesirability of rapid ethics moves -- fx moves. we will be talking about strategy with julius baer. the ma opens in sl an tokyo are next. this is bloomberg. ♪

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>> this is "daybreak: asia." counting down to the major market opens, we are bracing for even more of that slide. really echoing the reality check u.s. equities had overnight with the harder than expected u.s. inflation. cpi pushing markets to reprice fed expectations to pull back on expectations and the number of cuts we are looking at from the fed and potentially looking at the idea of the final leg of this cycle for rates being potentially stickier and more volatile than previously priced in. look at how we are trading in australia. every segment of the market is already trading in the red. financials bearing the brunt of the selloff as we had cpa as a headline beating expectations with the drop in margins continuing to worry investors. getting straight to the open in japan. a bit of upside at the end of