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

the last trading session. this is a market on the cusp of one good day from an all-time high. about 2.5% away from the 1989 day. it does not feel like this will be that one good day where we get the all-time high. we are down about .6% into the side of trading. topics also a bit softer into the first couple of minutes of trade. more broadly, equities falling in sydney. potentially, that return of trading in hong kong is not going to bring much good news. the golden dragon index of u.s. traded chinese companies falling 2.7%. heralding that the negative sentiment for chinese risk assets is set to return as trading begins in the year of the dragon. the other big story in the yen. staying pretty resolutely weaker above the 150 level. the dollar really barreling toward the three month high. the momentum behind potentially a more hawkish fed on the u.s.

cpi numbers driving that weakness. we've heard verbally intervention from japanese authorities, both from the top currencies chief and the finance minister in the last few minutes or so expressing their concern over the moves being rapid and speculative. at the end of the day, you have the divergence between the bank of japan's in action and repricing of the fed on those surprises in u.s. economic data. that is one we continue to watch very keenly. take a look at the start of trading in korea. kospi up by 1.6 percent. a broad selloff across the region. tech stocks bearing the brunt of the selloff. if we don't get more easing and sooner than expected as that narrative gets more corrected. we are watching -- some of the sox we have seen buying into the likes of chip stocks.

samsung is being key in today's session. as i mentioned, we see it in australia, just about every segment, i would say every sector has been trading in the red. we had cba, the country's top lender providing numbers where profit and dividend topped estimates. a lot of focus when it comes to the messaging. the concern about strong competition in the hawkish market and broader macroeconomic risks for the economy and the drop in margin has been what investors have been focused on. the aussie dollar has been steady in light of the u.s. dollar strength. new york crude continuing to see weakness under $78 a barrel. competing in iea outlooks on what to expect on the demand side. the u.s. stocks pass report was mixed, as well.

let's bring mark matthews, head of asia research. setting off with a u.s. inflation report. does it make a meaningful difference to your outlook? does it come as any surprise given volatility in this last stretch was pretty well flagged? >> i think there are several think i would say, we should not lose sight of the headline cpi on your terms being down for 3.4 percent in december, 3.1 percent in january. the core on a month on month basis rose .4%, which is the highest rate if you exclude the pandemic since january 1995, which was an awfully long time ago. if you look beneath the hood, the real cobra is shelter. a third of the headline cpi and 40% of the core cpi.

that was pushed up in particular by hotels and motels, which is really not a sustainable thing to push it up because there's only about 3% of the shelter cpi. i would say shelter cpi is being sticky. 60% year on year. if you exclude it, overall cpi would be about 1.8%. below 2% for eight months in a row. if you get rid of shelter, everything will be ok. we cannot do that. but if you look at the real-time rental indices, they are growing at less than 2%. we know given the methodology and the strange random sampling the bureau of labor statistics used to calculate the subcomponent of cpi. we know it is going to come down. >> what does it mean when it comes to implications for investing, particularly for u.s. markets? do you think the primary force will be bullish?

you think valuations are not outlandish compared to historical numbers? >> i would say two things. the first, the market has done so well that a correction is merited and will be welcome. we thought it might be the nvidia results next wednesday that would mark the interim peak for the s&p. we are looking for a retracement of high single to low double digits. maybe this was the catalyst. the market needs to take a breather. we still think it is a bull market and be higher at the end of the year. once in a while, it should not go up in a straight line. i will say that we are always of the view the market was too sanguine about the pace of race cuts -- rate cuts. we are looking for 4.25 as a rate in xml. i think about 70 basis points or more higher than what the

futures market is pricing. we always felt that economy was so robust, even if the fed can cut rates, it is in no rush to. so that needs to be reassessed i think. haidi: to the other end of the spectrum, can chinese authorities afford to take their time? what more can they do? as we see the resumption of trading for hong kong, do you see any meaningful catalyst to change sentiment? >> i think the most in -- exclusive thing was a few weeks ago, the prime minister said they want to stabilize the capital market, specifically the stock market. the hang seng is up about 5% since. if they let it go back below, it is a major loss of face. i don't mean to stigmatize. face is a big deal in china, important part of this culture. if they say they don't want to go lower and a goes lower, it is

a loss of face. they could easily make the market go up and the economy rebound if they sent everybody a check like what the americans did during the pandemic. they don't want to do that because they are afraid of corruption and leakage, money leaving the country, so they are not going to do that. i think the market is cheap enough, two standard deviations of its long-term average valuation going back 40 years. and they have committed to stabilizing the market that i think is putting in a base. if you buy high-yielding stocks of which there are many, you have an even better cushion. haidi: just wanted to end on a quick note on bonds. you do like en when it comes to investment grade dollar bonds. we seem to see the fade in correlation between how important china is in that a.m. complex? >> yes, it is a much stronger

part of the em bond universe than a couple of years ago. we are underway china in the em corporate bond context. we still find lots of great yield elsewhere. we can get about 6.5% in investment grade corporate bonds in asia with an average duration of 4.5 years. that compares to a slightly lower yield in america. let's call it 5.5%. much longer duration, on average, seven years. the best value in the corporate bond market is in the emerging space right now. especially if people become more sanguine about the pace at which rates are going to get cut. haidi: mark matthews, great to chat with you. take a look at some of the movers we are watching so far. about 10 minutes or so into the start of trading in tokyo and in

seol. korean air with a deal closer, the bid for the smaller rival asiana airlines. potentially we are one step closer to reality for the deal being sealed. firms offered to address concerns raised over competition in the ec said on tuesday the offer could be enough to smooth the passage of the deal to approval. we are also watching japan tobacco for the operating income forecast missing estimates. that is trading to stay. it is the broad-based weakness we see across risk assess in asia on the back of what we saw following u.s. inflation numbers topping the forecast. a blow to those easing hopes. indonesians begin voting in their first three-way presidential race since 2009. we will be speaking to partners about how the election may

impact the indonesian economy. up next, china firmly opposes "illegal sanctions" following the eu's proposal to impose trade restrictions on companies trading with russia. this is bloomberg. ♪

>> more than 200 million indonesians have begun heading to the polls to choose their next president and parliament. three candidates vying to succeed setting the course for asia's biggest economy. our chief international correspondent for southeast asia joins us from jakarta. it is hard to underestimate the sheer scale of this election. haslinda: you bet. archipelago, in an area as large as the u.s., and we have three time zones, 700 languages. it is indeed a massive undertaking for the country. let's put those issues into perspective. our columnist joins me right

now. good to have you with us. even if you talk about policies, continued policies, it is democracy and the rule of law. great concern about a backsliding of that. put that into perspective. >> absolutely. it has been exciting covering this election period, given the fact it is consequential. i lived the transition from indonesia's dictatorship period into democracy back in 1990. i grew up in the country and saw firsthand how much people thought during that era, the era of reform, in order to earn this hard one democracy. that is what we are talking about today. the candidates that are on offer for more than 200 million indonesian voters have to present a degree of stability, economic stability, that we have seen over the last years of his time in office.

people are also looking for a sense of identity and topped with belonging. what does it mean to be part of indonesia in this new age with geopolitical concerns, the relationship with china, but as well at a time when indonesia is finding its own voice as a member of the global south and all of those things are very much on the table. ultimately this comes down like elections everywhere to what people want from their next leader. really interesting speaking to voters, particularly out and about at the rallies this weekend. haslinda: concerned about that interference, not just his fielding of his son as a vp candidate, but also look tweaking of constitution. what is the sense on the ground? is there a sense of betrayal we are hearing from the people? >> it depends who you talk to.

speaking to legal experts, it is a huge issue. in a democracy, there needs to be checks and balances. the rule of law, as one university expert put it to me, has been used in a way to manipulate the process. specifically looking at the fact the constitutional court last october lowered the minimum age for candidates to become -- to run as vice president, which saw his eldest son come into the fray and become the vice president or nominee. there was a lot of controversy about that decision. particularly because his brother-in-law was in charge of the constitutional court aching the condition at the time. that raises concerns for people. those who lived through that era, the former dictator who ruled indonesia for 32 years. he was seen as somebody who presided over this era of what is known as corruption,

collusion, and nepotism. people don't want that back. speaking to the younger generation, and i was at these rallies, the boisterous, festive occasions. proper festivals of democracy. one young boater who is going to be voting for the first time said i'm concerned about that, but it is all in the past now. and we need to look at the future and give him the vice president or nominee. he's young, he's like us, he gets what we want. i think there is that generational divide that indonesia of the past and in og -- indonesia of the future. haslinda: we see the past coming back. when jokowi came to power, he was the first non-elite, nonmilitary from a political dynasty. yet he was leaving a legacy of political dynasty. >> how times have changed. we were out in 2014. haslinda: don't date us. >> but as we were talking about,

it was a real sense of such momentous occasion in indonesia. someone who is not from a prominent fount many -- family, military background, someone like him couldn't make it as president. so many turned to me and said if he can do it, we can do it. he brought a real sense of hope and belonging to people. i've not yet found a sense of betrayal as we were talking about. look at his approval ratings, they are really high. i think politicians would want an 80% approval rating. this particular issue with his son has definitely damaged him. we will have to wait for the results to come through to see how much it has really damaged. haslinda: stability has returned, there is growth. jobs for the most part. the un-implement rate is low at about 5%.

our columnist there. we are counting down to the end of the election period. all within a seven hour timeframe. 200 million voters cutting the votes in just seven hours. haidi: our chief international correspondent for southeast asia, haslinda amin. both they in jakarta. we will have a lot more on the indonesian election to the course of the day. stay tuned for our conversation with the former finance minister, the chairman of the board of indonesia financial group. some of the other political developments we are tracking. pakistan is closer to getting a new government after -- was named the country's next prime minister candidate. he was nominated by his older brother, the three-time former prime minister. last week's elections saw no political party achieving an outright majority. the tough task for pakistan's new leader will be to negotiate with the imf for a new loan program. the u.s. senate has approved 90

$5 billion in assistance for ukraine, israel, and taiwan after months of delays. the legislation faces an uncertain future in the house where republicans are tying it to action on the border. president biden has criticized donald trump's weekend, that the u.s. should not defend nato allies who don't meet defense spending targets. >> donald trump looks at this as if it is a burden. when he looks at nato, he does not see the alliance that protects america and the world. he sees a protection racket. haidi: china is lashing out at a new proposal from the eu to possibly sanction about two dozen firms, including three from china accused of aiding russia's war in ukraine. our chief north asia correspondent stephen engle joins us. what do we know? >> we know beijing is not happy. beijing was able to ward off a similar proposal by the eu to sanction firms.

but some member nations in the eu block heard from china trying to dissuade the fears of the eu back then that they were not. their companies or government channels helping aid russia's war in ukraine. it has been resurrected. the eu has proposed sanctions on two dozen firms around the world, including three from china, other from hong kong, other from india, turkey, and syria among others. beijing has put out this statement that china firmly opposes what it calls illegal sanctions, or long arm jurisdiction against china on the grounds of cooperation between china and russia. we can change the page and see chinese and russian enterprises carry out normal exchanges and cooperation.

they do not target third parties, nor should they be interfered with or influenced by third-party. that is the big issue, whether these private enterprises are using third parties or third nations to get sanctioned equipment or materials or any other goods into russia that could aid the war in ukraine. we've gotten the statement from beijing opposing that. we don't know necessarily how far the eu potential sanctions will go. haidi: our chief north asia correspondent stephen engle. we do have breaking news. sticking to the theme of politics. the gop led house has voted to impeach the homeland security secretary ellie hunter mayorkas after the resolution failed to pass last week. he's the first cabinet secretary to be impeached in nearly 150 years. ahead of that vote, gop leaders expressed confidence they would be successful this time as house

majority leader steve scalise was expected to return and deliver the necessary votes. even as we see the impeachment in the house and this partisan vote, it is unlikely that ellie hunter mayorkas will be charged in the democratic-controlled senate. president biden's homeland security sec. is being accused of committing high crimes and misdemeanors in his handling of the southern border, even though constitutional experts have said that evidence does not reach that high a bar. but house republicans voted the narrowest possible margin on tuesday to impeach the homeland security secretary as the lawmaker returned to washington. we saw from cancer treatment reverse what was an embarrassing defeat of those charges last week. house republicans prevailing on the second attempt to impeach him. we saw party leaders rushing to redo that vote just hours before the polls close.

we are seeing the second cabinet member in u.s. history, the first in 150 years to be impeached. it is unlikely that necessary two thirds majority of the senate will vote the same way. we do have much more to come. this is bloomberg. ♪

haidi: this is the reaction we continue to see to the hotter than expected u.s. cpi and the repricing of fed expectations. that move in as we see the yen the biggest reaction. firmly above the 150 level. off of the highs and the lows we see when it comes to yen trading against the dollar. traders have been put on notice of authorities are watching. we heard from the top currency

chief, the finance minister talking about how undesirable, rapid, and speculative moves in fx are really being seen from that side of things. but at the end of the day, the fundamental divergence between the bank of japan not really doing very much and the repricing of the fed due to the positive surprises we see in eco-data. we are watching a bit of weakness in a broad-based way across the region when it comes to fx and trading in risk assets. european futures looking like we are setting up for weakness at the open as well. potentially another slide after they fell the most in four weeks.

haidi: indonesians are voting in

an election that has turned into potentially contentious and it comes to how the outgoing president is being viewed. he still exits his 10 year with an extraordinary amount of popularity as we head into what is an election of enormous scale and consequence in southeast asia. it is set to shape the reform agenda. this is an election that is being picked as the biggest single day polls taking place over a six hour period. electing not just the president but thousands of lawmakers to local and national legislatures. the leadership will take over from october. weber is successful, takes of the -- whoever is successful takes the reins of a behemoth of an economy with opportunities but risks when it comes to the reform agenda. let's get to jakarta where

haslinda is standing by with our next guest. haslinda: third-largest democracy. it wants to be the fourth-largest economy by 2045. let's get to our senior director that runs in partner. we are seeing reins outdoors. i'm wondering whether that would impact voter turnout. traditionally we have seen an average turnout. will this impact turnout? >> any given day, the rain will affect traffic in jakarta. this morning, it could impact voters throughout especially below 35. in 2019, turnout was 42%. talking about 100 million young voters. 44 million. this with the rain could be lower than that. haslinda: would that be

detrimental? we have seen how it is the younger people who are supporting him because of his tiktok strategy. will that impact how he performs? >> i think there will be some dent in his votes. right now he is pulling above 50%. with those demographics he is targeting and with this condition, they might be deterred from going to the polling booths. haslinda: what has been key for voters for the selection? >> i think continuity is key for a lot of voters regardless of age. he has been successful in infrastructure, industrialization. a lot of people are looking forward to more of the same. an increase in investment in infrastructure. haslinda: in terms of foreign

policy, how do you think indonesia should be positioning itself? how should indonesia be positioning itself amid an environment where there is a lot of tension between the u.s. and china? >> entity jazz been pragmatic in its foreign policy. the country does not have the historical way that vietnam has vis-a-vis china or the geographic wording the philippines has been close to china. it is going to be pragmatic and continues to be so in terms of inviting investments. it happens that chinese investment is easy to deal with any terms of yesteryear requirements. we are also seeing european investors coming in on nickel processing. with the u.s.. the government has been trying to match u.s. investors with chinese and local investors. that part, it will continue in

the same business model. haslinda: how do you think the u.s. is looking at a potential presidency? the u.s. put him on its blacklist for almost 20 years and allowed him to make a trip to the u.s. only recently when he became defense minister. how might either a biden administration or a trump administration view him in this position? >> my sense is the u.s. has also come over in terms of accepting him. haslinda: short memory. >> exactly. short memory. also very business oriented. if you want to buy fighter jets from the u.s., the u.s. would welcome that. it is a pragmatic relationship with the u.s. haslinda: people highlight his uncertain demeanor. he is known to be a fiery personality. very unpredictable. might a commitment to his policies just be lipservice?

might he adopt a different policy? >> he could adopt a different degree of implementation of policies but not total change in direction. we have already seen some of that. he wants to spend more on milk and free lunch for school children. he will continue on infrastructure. i don't think he is going to change direction very much. it is a matter of degrees should haslinda: he says he has put in place an economy that will be able to grow at 7%. has he? >> not yet. there was a report last week from the university of indonesia comparing performance of. previous presidents he has performed well in infrastructure but not so much in productivity. the previous president was lucky in terms of the commodity boom

during his presidency. the next president will have to unlock that growth if indonesia wants to achieve its high income target by 2045. the next president only to improve on education, training, productivity. haslinda: who is able to do that? is he able to do that? >> certainly his program of investing in education and health would help that. being annexed minister of indication, -- education, he let more targeted policies in terms of unlocking the infrastructure. haslinda: there been rumblings on the ground about jobs being created. the jobs being created are not the jobs promised. more high-paying jobs for instance. how do we that and how does indonesia overcome that?

>> that is what we are seeing in terms of the increase in per capita income. it is not as great as it was previously shared there is a lot of digitalization going around. we need to capture a lot of that in the country in terms of scaling and of scaling digital workers. haslinda: one question before we go. we know jacoby has been seen to be interfering in the process. postelection, what role do you see him playing? >> he would probably still be involved either directly and also indirectly through his second son who is leading the psi party. his brother-in-law is still in court. he will still play a role in political terms. not sure whether to still within

the ip or through his family. haslinda: thank you for that. senior director at vince and partners. it is a consequential election. investors wanting to see policy continuing. bearing in mind we have the jci surging 45% in the nine years he has been in power. perhaps we could see another record high should there be content arity in terms of power -- should there be continuity at a terms of policy. haidi: so much at stake. haslinda covering the indonesia election. it is happening in a relatively short time. we will be getting more on the election. stay tuned for conversations with the former finance minister and the chairman of the board of indonesia financial group. much more to come on daybreak: asia. this is bloomberg. ♪

haidi: take a look at how we are seeing trading across the region. it is the broad-based route following on the back of the selloff we saw in the u.s. number of these markets are off session lows. lenny nikkei 225, just about

2.5% away from an all-time high. this does not seem like a day we will get there. 7/10 of 1% lower tracking the broader losses across the region. hotter than estimated u.s. inflation number giving risk assets a bit of a reality check. seeing some frantic repricing expectations from the fed. the topics off by 1%. dollar-yen is want to watch. hovering around the 156 level. we get more verbal intervention, warnings from japanese authorities they are displeased with rapid and speculative moves in the effects rate and potential looking at that as a prelude to the risk of actual intervention. let's get more from our issue equities reporter who joins us in tokyo. we had a big session in the previous part of the week. we see this regionwide or global

selloff. what have we been seeing as the recent drivers in the japan equity rally? >> we are seeing some weakness today because of the u.s. cpi numbers. like you mention, the momentum has been strong for japanese market. it is driven by the weaker yen. we are seeing the yen weakening to over 150 against the dollar. the corporate governance reform going on. we have a lot of foreign inflow coming in for a consecutive five weeks. this time specifically, we are seeing the positive earnings gain a specific driver for the japanese market especially from the big names. toyota had their forecast and softbank group rising on the arm rally and positive earnings. chip names are doing well as well. haidi: tokyo electron's price

rising 13%. that was a record high following earnings. what was the big catalyst there? >> the stock release surged right after the company announced they are going to hike their forecast on the back of the strong demand were strong sales from china. the company even says this momentum is going to continue for the next one or two years. china revenue accounts for over half of their total revenue. the percentage has been increasing. you can see as the u.s. starts to impose the trade curbs of advanced chip technology on china, china is purchasing more of these relative equipment to boost their capacity and capability around that technology. the demand is rising, which is a stark contrast when you compare some of the china exposed -- the

high china exposure names in the japanese equities. we see factory automation names, electronic names following in japan because of the negative earnings due to the drag in the economic slowdown in china and also the property trouble going on in the country. haidi: our asian equities reporter in tokyo. we stay with japan. this is a picture as we are keeping a close watch on the yen after the flurry of messaging about came from a number of top currency officials and the finance ministry in particular. we sell the top currency official talking about the redness to take steps to intervene if needed. a bit of jawboning to kickoff the session as we see the yen sitting above 150. with that momentum behind the u.s. dollar, seeing broad-based

weakness across other asian currencies including the aussie down flat at the moment at 6453. let's get more on what we are watching across fx and rates with market wilson in sydney. it is all about the yen today particularly with the flurry of messaging. >> absolutely. one of the comments that came out was from canberra. it was a two pronged comment. he said some of the moves are acting along with fundamentals and some are not. i would say the ones that are would be the dollar yen, the move up in billion. it is probably in keeping with previous dispersion in the price relative to the 10 year u.s. japan bond spread. what is not desirable i think what we are seeing in the rate space where the 10 year jgb yield ticked up four basis points. it was in the wake of the cpi

print with the treasury move overnight. that does make sense but at .76%, we are just shy of the .8% high seen back in december. if we top that, it is reasonably significant. the market may try to force the hand of the authorities to see how much conviction they got. if they don't convincingly step into control rates around -- above the .8, that will be a red flag for the rates traders should that will mess with dollar-yen too. the market has seen the authorities are not sitting back watching the fallout from it. they are being quite verbal today. i think that is what is keeping the dollar-yen in check. haidi: it did not really have a

massive impact. it did not knock it back to much. >> from a trading point of view, it went to 15088. the pullback even before the new york close was only about 30 or 40 points before we closed at a high. we have not gone outside that range yet. if they say the right thing and trigger at the rate point on the chart, we could see dollar-yen back around 150. that makes that further away. for today's purposes, quite right. they would expect a higher reaction. a stronger yen on the day to what they have been say. the conviction is still there. the need for repricing within the dollar is still going on. the u.s. 10 year yield, and

other basis point higher. it is a rates driven market right now. while that is still finding a bit of a new watermark, i would not necessarily back any commentary as being the be all end all. it would jump around between the 14950 and 15150 until something new comes into the market. we have already digested the big cpi pill. we may have to wait until we get said the march bank of japan meeting. the scenario is right there for you eta to make a move on rates. the set up has suited them. there is little opposition for them to make a move on rates. the market is running with that. we are probably in for entertaining 30 days. haidi: our effects and rates reporter here.

tune in to bloomberg radio. you can hear more from our big newsmakers of the day and get and up analysis. broadcasting live from our studio in hong kong. that is radio plus or bloombergradio.com. this is bloomberg. ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...?

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haidi: you're watching daybreak asia. a bank ceo says wrist are mounting and it is truly an economy after the wonders profits topped expectations. catch profit from content and operations came in over 3 billion u.s. dollars. he says slowing demand and inflation are impacting businesses with geopolitical tensions creating uncertainty. another bank making headline today. bloomberg haslinda standard chartered is your week and structuring its banking arm. let's bring in our finance editor. how does this potential restructuring help? >> what we know is bill winters is under quite a bit of pressure and he has been for some time. this is one idea they have been exploring which in some ways makes a lot of sense. you can break out the different divisions across this group into more specific business areas.

the stock price has been under quite a bit of pressure if you look back to when bill came in. you have seen some pretty lackluster returns in a market globally for banks especially in recent times has been pretty decent. the pressures there and this is one avenue of cost-cutting and restructuring that may provide some pathway to success for him. it is more broadly of course symptomatic of what is happening in the banking landscape not just in asia but the rest of the world where banks are trying and leaders of banks are trying their best to find pockets where they can eke out incremental cost savings or find ways to redeploy some of their top people into other areas and make some cost cuts along the way that will improve the franchise. we are still waiting to see how the details will play out. there may still be changes beyond what we have reported.

clearly a close want to watch and could give if they do end up going down this route winters an excuse to say have a look at this. haidi: if it does come to pass with the job cuts, it would join the likes of citi and goldman sachs. you've spoken about how this reflects the global landscape. are things going to get tougher or we seeing the beginning of this? >> it is a long list. you mentioned a couple of banks. clearly we are not through this yet. there is plenty that has taken place in asia but also europe and the states. banks are continuing -- as we saw with the u.s. inflation print, just reminded everyone it is difficult to forecast what is going to happen in the next months ahead. a multitude of outcomes. that is the difficulty. you don't want to trim too hard in areas where you want to stay

competitive. it is tough for bank most is to tread that fine line between having the right personality and the right departments but also continued pressure from investors to lower their overall cost space. haidi: of course we are progressing throughout the course of this trading day. interestingly, we are seeing some of the losses looking a little more muted in the asian session. following on the back of the weakness we saw on wall street. rapid repricing of expectations by the fed. the pushback of the timeframe as well as the magnitude of expected easing from the fed after the hotter than expected u.s. cpi numbers gave everyone a reality check. we are seeing downside when it comes to trading in the nikkei 225 of just half a percent. we are still just about 3% away from the 1989 hi.

today does not seem to be the day we will get there but we are close to an all-time record high for the nikkei 225. the weakness we continue to see in the yen over the 150 level will continue to support that despite the jawboning from a number of officials from tokyo today. asian stocks tracking the u.s. decline and we are watching the resumption of trading in hong kong. likely to be a downward day as we saw u.s. listed stocks seeing the selloff. number of market still closed across the region. china, taiwan and vietnam closed for the observance of lunar new year. indonesia of course closed for election day as indonesians head to the polls. our markets coverage continues. we lo ahead to the start of trading in hong kong. this is bloomberg. ♪

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