annabelle: this is daybreak: asia counting down to asia's major market opening. u.s. markets are shot. it seems earnings is still the big focus for investors. geopolitics of course and also priced to perfection at least on the u.s. side. haidi: yes. the repricing of fed expectations, the reigning in a said cut expectations. it's a vague day -- big day watching how chinese markets come online after the lunar new year holidays. do we have a more auspicious start to the new year than the way the last year ended? annabelle: i'm sure that's what beijing wants. proxies have told us we could see moves to the upside. japan coming online. a bit of code data. core machine orders out for the month of december. i the last 10 minutes or so they came in pretty much flat with

what economists had been expecting month on month area -- month. up 2.7%. you're on your better than expected. though still in contraction territory. japan is not getting any lead from u.s. futures so forgiving markets shut for the day. so far today trading fairly flat. the nikkei, very much something to watch given we are getting pretty close to reaching a record high setback in 1989. some stocks watching in the session. nintendo is one. it's not trading as of yet. but, we understand it has told game publishers that the switch two console will be delayed until early 2025. that stock will likely drop at the open. the bnr spread is not matching yet. korea. moving into positive territory. korea coming online. seeing very muted gain so far in the session trading up owing 3%. the cost stack that is more tech

heavy a little under pressure. the korean won again a little firmer against the greenback. markets in the u.s. are shut for public holiday monday. haidi: it is the holiday themed start of trading without much lead from the monday session expected this week. take a look at what we are watching with trading in australia. a big week of earnings. focus when it comes to the minors you'd be it, gold, lithium, or iron ore names this week. we will see how that passes through from higher oil prices specifically to those numbers. we are always looking for signaling and commentary on the china economic story. a split picture in trading. very splat very flat or just marginal upside for the broader market but in sydney materials ahead of earnings outperforming almost 1.5 percent higher. industrials also putting on a

little bit but the rest of the market in particular real estate, property stocks and technology seeing some downside. real estate is the underperformer down by 1.7%. we are watching oil markets. you mentioned the accelerated focus on the geopolitical side of things. we are seeing oil pretty close to the highest we have seen it trading this year. brent crude shy of $84 trading a little softer. certainly middle east tensions are stoking further bullishness among energy traders. at the highest since 2021. qatar flagging very little progress has been made in the israel hamas cease-fire talks and from the israel side giving them a deadline of releasing the last hostages from hamas by ramadan in march. so some pressure there when it comes to the expectation of potentially an operation taken place in the rafah region of gaza.

oil is still sticking pretty close to the highest levels we have seen so far this year. and quick look at u.s. treasuries as well. we see the previous session paring most of the losses spurred by hotter than expected ppi. the broad theme continues of the repricing and readjustment of lowered expectations for rate cuts. the first fully priced in cut shifting back to july from june if you are looking at said dated swaps. we will get more from our next guests our chief asia-pacific regional equity strategist at goldman sachs. always great to have you with us. going into the start of trading in the year of the dragging -- dragon things look as good as we could expect given the weight of the last year. you think the positive carry through from things like spending data will be end of two change the trajectory of how is

this feel about chinese risk assets? timothy: good morning. great to be on. a quick answer is this will take more than just a couple data points to change investor perceptions about china. we are, sadly, just celebrated yesterday, sunday, the three year anniversary of the top of the bull market the start of the bear market. there have been a number of different rallies off the bottom in respect to cases during that three year timeframe. and almost all of it was selling and it moved to lower lows. i think that is something to break the investor psychology had on the brighter side i think there is a key opportunity for a tactical rally. i think that is the easier called to make than to say it's a structural turn to things. number one, we are quietly 10% off the bottom, by the way, even to the close before during chinese new year. number two, as you said we have good data that has come out for

the break. we had total trips up 30% year on year with spending up about 47% year on year and it will give a decent lift for us to start and we will catch up perhaps. valuations 8.5 times four in earnings, certainly seems to be a bit expensive. i would think you would have improvement in shorter-term data momentum and see a continuation of the traveling. we would need to see greater policy support to try to change investor perception about longer-term structural dynamics. annabelle: meantime where you view the opportunities? do you look at the potential for more wealth creation as an uplift in household sentiment that we might see on a public holiday spending figures or are you still looking up following what the national team might be investing in? timothy: a bit of both.

there is opportunity in the consumer area. our different parts of the economy, service oriented areas like hotels and other beneficiaries of trouble and that is one area. more broadly strategically we lead into the theme of china rebalancing a catch all to shift the economy away from a property debt field infrastructure investment and more towards areas that are structurally beneficial like higher technology investment, the renewable green economy, mass consumption, the reform of esso we come up -- as soes and the going global theme. we like both those areas. i think the area the market will focus on tactically will be recovery during -- in travel from during the lunar new year but the longer strategic opportunities are the ones i just mentioned.

annabelle: on the china rebalancing theme how concerned are you about u.s. china tensions? do you think the rebalancing theme, the focus on sectors like ev z renewable energy, do you need to see better relations between the u.s. and china given there is still a risk of tariffs, for instance? timothy: great question. ironically, the u.s. china tension actually accelerates or fosters -- i mean, china clearly needs, from its perspective, to be more self-sufficient and rebalance the economy, as i mentioned. that is something that will clearly be propagated by improving technology, but, moving to better mass production by being leading into the renewable energy theme that has social consequences as well as energy self-sufficiency aspects. u.s. china tensions would certainly serve to reinforce policymakers longer-term intentions in china to move in

that direction. no, from an investment standpoint there are obviously complications. the very parts of the economy that look more interesting, particularly leading into higher technology spaces, carry more risk of some sort of being sensitive to geopolitical tension. i think from a strategic perspective, and from china's perspective, those are the areas to be invested in. from an investor's standpoint, it does carry some greater risk that stops you might like might be on lists that could be prescribed from investing. that is the tension one needs to be aware of. haidi: you mentioned more effective policy delivery. what are you expecting there when you have a situation over the weekend where the pboc elected to hold its key rate the one-year mlf? timothy: that is a function of sensitivity under the interplay between rights and the currency.

with the fed looking like it won't move as quickly, expecting the market pricing out three fed cuts, now looking at about four in round numbers, that obviously suggests the fed will move later. that in turn suggests there is more opportunity for the pboc to have lower rates given the impact that might have on the trading value. the broader aspect of your question, of course, is what areas -- what policies would china have, or, should china be leaning into, in terms of stimulating the economy? it's clear those fall into a variety of categories. there is monetary. cisco is probably the most significant. both in terms of selective areas of interest, took a bully -- typically a shorter cycle for school boost and more strategically and structurally areas the economy certainly needs. we are keen on the theme of advanced infrastructure and you

can also talk about the green economy as having a fiscal aspect to it as well. then of course the property market more specifically. china of course needs to support their. then the data. take out the left tail downside risk in the property market and you also mentioned the national team coming in supporting the stock market directly. any combination of those four would be viewed positively by the market. they want to emphasize its about delivery. there has been a lot of verbal support, but not as much carry through in actual limitation. the market is jaded about this having not had the follow-through on a number of occasions. we really need to see delivery of policy support, not just the announcement of it. annabelle: we have a lot more to discuss coming up with timothy

moe of goldman sachs. in the last few minutes we saw nintendo coming online to the downside with the drop of 8%. what is behind that is thee advice it has given to game publishers telling them it's next-generation switch two console will be delayed until the early months of 2025 according to people familiar with knowledge of the matter. the successor to the popular switch was targeted for release at the end of this year. it has been delayed a few months. that's leading to weakness that you are seeing for nintendo. let's change to another stock on focus this morning, mitsubishi heavy. it built the h3 rocket for japan's national space agency. we saw that flagship probably -- flagship rocket being launched at what could be a turnaround for japan's battered space program. it has been struggling to overcome recent setbacks.

it is looking to compete with the likes of spacex, of course, the elon musk program. mitsubishi heavy there you can see moving a little to the upside. we are tracking samsung. essentially, there was a $4 billion chip making patent lawsuit that is now being cleared by a texas jury. that's good for samsung to see. the counterparty had been seeking nearly $4 billion in damages. it seems like samsung has avoided that. now mira is another name to be tracking. its long-term rating was affirmed by moody's at baa one. that's an outlook that has gone to stable from negative. again, nomura, is one we are tracking this morning a little under pressure so far this morning. haidi: other stocks we are watching the early part of the session.

coming up, and exclusive interview with singapore's trade and energy minister gan kim yong with the government unveiling a raft of support for households and companies. that's later this hour. this is bloomberg.

annabelle: you are watching daybreak: asia about 15 minutes into the trading session for japanese and korean equities. you can see mixed moves. the kospi up 1% at the start of trading. let's bring back to my theme of -- timothy moe of goldman sachs joining us this morning from singapore.

you were just saying, you are pretty bullish on korea. you are saying you were perhaps a little ahead of the pack on that. timothy: i think the story in korea is the best cyclical recovery story in the region. the strongest expected earnings recovery after very poor delivery of earnings last year, a close to 60% increase after earnings fell 30% plus in 2023. our semiconductor analyst just had a call with high next late last week and the outlook for dram pricing and demand for ai related memory chaps -- ai related high-bandwidth memory chips is increasing. we think that this should rally -- really gather pace year on year into 2024. all this with the market trading around 10 times earnings. the market rallied significantly

last year and sold off after the august high. rallied at the end of the year then sold off early this year. we have been shopping around a wide range the last six months or so. meanwhile earnings have been recovering. we think we are on the cusp of the market really appreciating and earnings recovery. beyond -- behind that there is a new theme of gradually improving corporate governance. i think the key concept here is korea is taking a pan out of -- page out of japan's playbook leaning into encouraging companies to improve corporate governance and focus on returns all with a view towards improving valuation. over 50% of the korean market trades below book value a bit more than the percentage of the japan market that trades below book value. the big same in japan has been corporate change encouraged by the tokyo stock exchange. the market trading at 33 year highs it close to its all-time high in 1989.

in korea's case we have the so-called value of program that we will get further information on in a week or two. we think that as details of this come out, the market will continue to give some validation to a slow-moving but important change in creating a company's corporate government. so the cyclical story and the structural slow burning fuse is a positive argument to be -- powerful argument to be positive on korean equities. haidi: we have spoken about japan, but given consensus, is overweight japan, do you see further the room to build on that position particularly when and if the bank of japan does get to the point of normalization? >> the short answer is yes. one important point to note here is the risen perception that i think is probably true that japan is consensus overweight. when we pulled our audiences

during macro conferences in january in london and hong kong japan was the number two most positive market after the u.s.. certainly, folks are positive on japan. i think if you look at the flows, it's clear that positioning is not where people opinions are. so there is a positive investable gap between where people's views are versus where their money is. we can see that in terms of the one statistic that there were about 200 million dollars of net setting of japan equities in the seven years since the peak of the shinzo abe boom to those first quarter 2023. since then in round numbers about 25% of that has come back but nowhere near the full about. if you look at that and positioning relative to benchmarks, the broad community is still somewhat underweight. my suggestion was there could be further to go in japan especially as there is continuing evidence of companies

begin to take up more of the tokyo stock exchange imperative to improve focus on returns and corporate governance. bottom line we think there is further to go in japan even though the market has delivered good returns already. haidi: japan, india, korea emerging as the three key markets for 2024 perhaps an extension of the trend from last year. when you stack of those markets versus the u.s. where we have continued to see continued nonperformance of those markets there, the people you speak to committee investors, where are they really preferring to put their money? timothy: certainly the u.s. is very much in progress and deservedly so. the phrase u.s. exceptionalism has run through for a decade now and delivered exceptionally good returns. everyone is aware i am sure that they are more narrowly based and led by the so-called magnificent seven.

david caused a just raised our s&p 500 target for this year to 2200 several percentage points above where we currently stand a function purely of earnings delivery. fourth corner -- quarter earnings were a bit better than expected leading us to increase our earnings growth to 8% this year, 6% for next year, up from 5% for both years of previous estimate. we think the u.s. market can continue to do well but we are fairly close to our target. if you look at our numbers for say, japan, or other parts of the region, korea, in particular, we have a bit more upside for those markets and if china is able to stage a countertrend rally there is potential for further gains there though edge appreciation of returns. from a risk versus reward standpoint the u.s. is still an area we like very much for your japan stands out. selected parts of asia also look good. we say perhaps a bit more

balance of where we think the opportunity stand. but there is certainly still more to go in equity space for parts of this year. annabelle: always great to chat with you. asia pacific rate strategist at goldman sachs. more to come on daybreak: asia. this is bloomberg.

annabelle: beijing called on washington to live sanctions on chinese businesses -- nose. the chinese foreign minister wang yi made the appeal to antony blinken on the sidelines of the munich security conference. >> today, and international consensus forget those that attempt to shut china out under the name of de-risking make a

historical mistake. the ocean of the world economy cannot be cut into isolated lakes. the trend towards economic globalization cannot be reversed. annabelle: for more our greater china senior executive editor john liu joins us in hong kong. it seems like the readout from both u.s. and china were that the talks were fairly constructive. john: since the meeting between xi jinping and joe biden in san francisco there has been a concerted effort by both sides to have a more constructive on the dialogue. we have seen wang yi talking with antony blinken. he met with jake sullivan in thailand in january. we should expect more talks at high levels going forward. haidi: how complicated is the broader environment now for china as it makes its way through these relationships given the heightened geopolitical and domestic

political change we are expecting this year? john: i think 2024 will be an extremely difficult year. the economy is not in a great state at the moment. the mood is pessimistic. a big part of that is the relationship china has with the u.s. at the moment. trump tariffs are still there. we have all these technology sanctions imposed by the biden administration and an election in the u.s. were we will get a lot of anti-china rhetoric during the campaign. no matter who wins, ultimately i think we are looking up a tighter u.s. regulations on what can and cannot be sold to chinese companies and chinese entities. annabelle: you have foreign direct investment slumping to its lowest avoid a 30 years. how concerning is that? john: the geopolitical situation has companies recalculating how they use the money they have, where they build their factories, where they are sourcing goods. i think that a lot of people are

starting to move away from china. you are starting to get the sense that factories in china are just there for two -- to produce for china, not the rest of the world and if that continues it will weigh really heavily on the rest of the economy in china. annabelle: that's our greater china senior executive editor jean-luc -- john liu joining us there. 30 minutes into the session so far for markets with equities a little higher. the kospi standing out up one point 2%. more ahead. this is bloomberg.

>> you're watching daybreak: asia. taking a look at how benchmarks are performing. the nikkei poisoning -- posing

some modest gains. the nikkei two to five to hit its highest level since the end of 1989. a lot of analysts continuing to see gains for japanese equities over the course of this year. korea standing out to a lot of investors. we were speaking to goldman sachs saying there are structural opportunities. starting to see the discount you evaporate with the focus on corporate governance reform. the same you're seeing from the tokyo stock exchange. aussie stocks posting some modest gains. earnings in focus as we get into the week. aussie miners, we are tracking here. let's take a look at some of the big movers we are watching. nintendo standing out to us because we are hearing it is going to be delaying its switch

two launch. it was slated for the end of this year. it could be postponed until early 2025. investors not liking that. softbank another one to note. we are hearing reports matt ceo she son could be starting a ship company -- a chip company. softbank reaping the investments in arm. canon, you can track trading at a multi week hi. no clear reason for that. jumping the most in seven years. korea gas trading volume. tracking at the highest of the year. the kospi leading some of the gains today. let's turn to singapore. it is expecting its budget to swing back to a surplus in the new fiscal year as recent tax

increases brought up revenue and helped pay for social assistance. . the government unveiled a raft of measures worth billions of dollars aimed at supporting individuals and companies and boosting economic growth. our markets coanchor is in singapore with our next guest. haslinda: it is a budget with lots of goodies. let's get perspective. our exclusive interview with the singapore trade minister. happy year of the dragon. something for everybody. a 2 billion sing dollar package. some of the things singaporeans will be receiving. is this an election budget? >> we always look after singaporeans. we always hope to be able to meet every individual's needs. also businesses coming from the trade industry. my concern is helping our economy.

helping our enterprises including small and medium-size surprises. we have a rollout out enterprise support package this year to help enterprises be able to cope with rising costs over the last one year or so as well as to help them invest in the future. this is something that is important for us. we have rolled out our package for singaporeans. this is something we hope to recognize the contributions of generations of singaporeans. also to help them with the cost of living and make sure they have good quality of life and something to look forward to. haslinda: one of the key themes, reskilling. positioning singapore for the future economy. what are some of the challenges you are trying to address? >> it is important for us as we look forward to our economic development plans going forward, one of the key investments is in human capital. this is one of the key resources we have. this is a strength of singapore.

we have been investing in our people over the years. in this budget, we have put aside an important initiative to provide upgrading by topping up the skills future credit for our singaporeans so they can have a second chance to deepen their knowledge and skills. particularly looking at a program like a diploma course so they are able to have enough skills to meet the challenges of the future. haslinda: is it because of ai? what are the challenges you are trying to address? >> it is not just about ai. we look at the shift in our labor market over the years. we find jobs are changing quickly. technology changes quickly. the green economy, digital economies are very new areas of development. we want to make sure our people have necessary skills to benefit from the opportunities we bring out of these new emerging

economies. some of the skill sets are no longer the same as before. the green economy, i always give the example of electric vehicles. in the past, we have internal combustion engines. people are trained in maintaining engines with electric motors. it is a totally different technology. our people have to be trained in this technology. we want to continue to deepen their skill sets. haslinda: we have seen massive layoffs across industries like banking, technology. do you expect singapore's unemployment to be rising? when you take a look at the lay office, would the office be elevated at levels we saw pre-pandemic? >> we are watching the layoffs. we are rolling out programs to help those unemployed to go be resealed so they can be -- to be rescaled so they can be redeployed in growing industrial

sectors. this is something that is the story of our life in sing up or. our economy has been going through a transformation year after year. i joke that transformation is the norm. transformation as usual. we have to continue to transform our economy. transform our enterprises. we expect there will be changes in employment opportunity. that is where training and upgrading is key to ensuring or people will continue to have employability. haslinda: what does it mean for the employment rate and unemployment rate? what are you anticipating? >> we are hoping we can continue to up our employment rates. we do have a shortage of workers today. the key is not lack of jobs but skills matching. we want to make sure our investment focuses squarely on skills upgrading. so our people have the right skills for the jobs we create.

every year we create new jobs. we hope our people will have the necessary skills to be able to meet these jobs. haslinda: singapore is putting aside a billion sing dollars to invest in ai computing. how would that put singapore in an advantageous position? >> ai will play an important role going forward in industries, services, manufacturing, financial sector as well. it is something we have focused on in developing our capability. our plans for developing ai is laid out in our national ai strategy. have updated the strategy. we have announced we are going to invest significantly in building our capability in ai. we are helping enterprises to develop their capabilities so each of them can develop centers of excellence in their own right to be able to invest in innovation and take advantage of ai technology.

we are also making sure there are workers able to embrace ai and technology so they can benefit from opportunities. haslinda: it is a challenging geopolitical environment. there is a possibility of trump coming back to power. how might that impact trade and how was singapore positioning itself to navigate that? >> going forward, the trading environment is going to be increasingly competitive and competitive. that is no doubt whether donald trump comes into power or not. we must be prepared for a more challenging outlook going forward. that is what is important for singapore to continue to deepen our connectivity with our key trading partners. continue to invest in our trading infrastructure, in our ability to play a role in the new order of supply chain. , we expec supply chain to be rearranged over time as more and more countries are looking at in sources. -- in sourcing.

these will cause changes in the global supply chain. singapore was to be able to play a role in this arrangement. we are strategically located. we have that advantage. haslinda: no additional baby bonuses. is this because the year of the dragon will ensure couples will have more babies? >> we always want to continue to encourage our couples to have more babies. we have benefits in terms of enhancing support for early childhood education. haslinda: so all the incentives are enough you are saying? >> we will continue to deepen our -- encourage more babies. haslinda: handing it back to you. haidi: most economies around asia would be encouraging more babies. great conversation. israel says it will launch a round offensive under the rough area of gauze and less the hostages are released by ramadan. the holiday taking place in

march. the origins of this strategy are actually quite interesting. >> the idea is it gives them a deadline it puts the onus back on. two hamas somewhat. what it highlights also is israel has been arguing the war will release the hostages. it is fairly clear that will not happen after several months. the tunnels and hideouts that homeless has shared it is a good -- that hamas has. it is a good technical move. if you look at the hostages out the next month, how much longer can they survive? there are about 100 horse told live. some of these are older people. it is interesting tactic. we will have to see how thomas reacts -- help thomas reacts. annabelle: you think that is a tactic being condoned by other

parties assisting in these negotiations for some sort of cease fire? >> it is hard to know but it was interesting it was benny gets who is in opposition leader who joined the government when the war began. it is does this. -- israel traditionally does this. polls show he would be the preferred prime minister of israel if they had elections. it was interesting he was brought out as a person to make the suggestion that it is on hamas to release these hostages or face is rarely firepower -- or face israeli firepower. where the siblings can be moved to, he said they would move civilians out of the area. israel would. do this. but there is not anywhere for them to go. egypt does not want them on their side. all the other infrastructure in gaza is basically destroyed. it is almost like a bit of

shadowboxing going on. annabelle: when it comes to international support and u.s. support, been with has been stretched by the middle east and the ongoing conflict in ukraine. we were talking about the fall of the key city. is there concern with the domestic political pressures in the u.s. there may be a situation where there is less support for ukraine going forward? >> ukraine is having to ration its archewell at -- it's artillery already. it has not gotten enough support through. the $60 billion being held up in congress by republicans who are fairly influenced by donald trump. it is worrying. it is worrying european allies. it is certainly worrying ukraine. the longer this war drags on, the more lethargic people get about supporting ukraine. in a sense that is what russia has been waiting for. ukraine could not afford to lose more soldiers. russia does not worry so much about its casualties.

ukraine does not have the military firepower at the moment. there is real concern in europe about its security situation and for ukraine, it is extraordinary the u.s. cannot get support to a democratic country fighting for its survival. it is something in our lifetimes we could not have imagined. annabelle: there is the silence from donald trump on the death of russian opposition leader alexei navalny. something pretty telling as well. that was bloomberg's michael heath in sydney. we will have the former thai prime minister who has been freed from detention after serving time for corruption charges. details of that are next. this is bloomberg. ♪

>> take a look at how we are tracking on this monday morning session across the region. u.s. markets are shut for the public holiday. we are seeing positivity when it comes to the nikkei 225 up by a 10th of 1%. this as we are close to the december 1989 record high level. will this be the session we see it in? looking muted at the moment. wall street slumping on friday. further science from the ppi reading u.s. inflation

continues to be stickier than expected. weeding to the pricing around fed easing expectations. the kospi putting on a robust 10%. korea going from ages worst performer to the best performer this month on the involvement we are seeing from overseas investors stepping up purchases and local regulatory reform prospects driving those gains. muted session in sydney. seeing a pretty strong rally when it comes to the miners ahead of what is expected to be a big week of earnings. watching iron ore miners in particular. any sort of comments on the state of the chinese economy and the outlook as well. to southeast asia and the former thai prime minister has been freed from detention after being

granted special parole due to his age and illness. the 74-year-old was released six months before the end of his shortened jail term. our bangkok reporter joins us from bangkok. how did this develop and what comes next? >> an influential figure being released from detention is sure to shake things up in thai politics. in the bigger picture, his political power -- his political party is in power. that party is being headed by his daughter. cabinet ministers are lining up to pay him a visit. we could expect him to play a bigger role in the ruling party. we could expect him to start rekindling or forging new alliances to secure his political standing in the event he falls out of favor with the

establishment that has helped him to return in the first place. > what is his release mean for the prime minister -- what does his release mean for the prime minister? >> the release is going to intensify speculation about who actually wields the power in this government. because even though this is the prey minister, he is surrounded by loyalists. as a whaler that he is aware of such talks. he urged people to be confident there is only one prime minister in this country and that is him. for now, srettha will retain appeal as a compromised figure. he will retain some appeal as a

compromised figure for the party coalition but there is undoubtedly extra pressure on him to prove himself underthak sin's shadow. the cash handout schema that srettha has promised to deliver this year. annabelle: just drawing your attention to some headlines crossing the terminal relating to star group. this is a casino operator in sydney. what we are hearing is new south wales, the state's independent casino commission is going to be undertaking a second investigation into star entertainments sydney casino to investigate its suitability. oh cording to a statement we got. the commissioner has appointed

-- we are expecting the investigation to run for about 15 weeks with the final report due at the end of may. the commission saying it is giving the casino every chance to demonstrate whether it has the capacity and confidence to achieve suitability but there is a lot at stake. we have seen the sydney star entertainment stock suspended from trading. morehead on daybreak: asia. this is bloomberg. ♪

>> ages earning spotlight shifts to banking giants. analysts say results from hsbc, standard chartered could spell out the risks brought on by their china property operations. let's bring in our breaking news earnings specialist hsbc saying these are some of the names that stood out on the graphic. >> we are seeing earnings reporting this week. also -- sorry. we are seeing earnings reporting this week and what you mentioned

earlier, some risk in the china operation and potential u.s. federal reserve on the margins of the earnings as well. for standard chartered, we are expected to see a jump in pretext profit for the quarter. the lender does face challenges lying ahead because they may be considering to restructure the institutional banking in hopes to improve their returns. it also comes after they set aside some loans related to souring property loans from the commercial property site. earnings would be on weakening revenue. and also on persistent china risk. similar risk for hsbc as well. we also see higher than expected loan charges because of mortgage --

chinese property as well. >> we have already seen a profit warning from new zealand today. what is the outlook on it comes to reporting from singapore airlines and qantas this week? >> asian airlines are seeing a boom in air traffic last year. the momentum is expected to continue in 2024. that would benefit carriers like singapore airlines. in australia for qantas, they are facing a series of scandals including overcharging customers and selling tickets from flights that were already canceled previously. investors may be looking out for comments from the management on how they would tackle these issues. >> our breaking news earnings specialist. and of course, in what is otherwise a muted session in

asia, the chatter is how we see china rejoining the fray after the new year holidays. quite a bit of positive news. the holiday spending. the consumption trend suggesting we might be seeing and uplift for households. butter wealth creation amidst the picture of the economic slowdown. i guess the question is whether this is going to be enough to be the game changing catalyst for the direction of this market. annabelle: we heard from goldman sachs saying there could be room for a tactical balance or market appreciation. the question is whether short-term national buying, is that going to be the key factor to drive equities to the upside? that is it from daybreak asia. more with the china markets reopening. ♪