>> welcome. >> top stories this hour. u.s. equity futures hold steady as investors await catalysts. >> mike henry's first interview after results. >> we discussed asia-pacific airlines. >> we are seeing a bit of a

pause. playing out the repricing of fed expectations. what we continue to see is the chinese reopening has been very muted. watching the numbers come out. we are getting into the swing of things. the aussie dollar is holding steady. pretty thin volume.

taking a look at japan. sounding like a little bit of a broken record. we are not quite at the 1989 high but insurers are looking deposited. could this be the day we get there? intervention risk is there but not much. >> just as well, noting the intraday high so the question is will we get there better? fairly steady, as you said we had markets shot on monday for the public holiday, not too much at this point in time. there is the general theme around the outlook for the fed.

about 90 basis points, compared to about 100 if the basis points and earnings are in vocus -- focus, nvidia. wti this morning is pretty much unchanged. the oil story is geopolitical tensions and the demand outlook plays into the china theme. rishaad: china and the fed. let's talk 28 chief asset strategist. great to have you with us. let me start off with the big picture and how reemergence is

playing with market expectations. do you think the market is pricing the right level of monetary action? >> if you go back to the beginning of the year, futures were looking like 158 basis points, that is now down to 91. that has been a really positive move. i am optimistic that inflation is coming down, disinflation is entrenched but last week was a humbling reminder. there might be some anomalies but regardless, it was higher than expected. ppi added to the confidence that the path to 2% is slower. haidi: where do you find opportunities?

we're seeing growth but also more compelling valuations in europe. >> when i look at the u.s. market, 84% of the s&p 500 has reported earnings. they are better than expected. when companies eat on revenue and earnings how much share price does not go up as much as it has in the past. maybe it is a signal that it is a fully valued market. when i look outside the u.s., i see better opportunities. china to be a positive story from an equity market because the sentiment is so negative. last but not least, i think there is a building positive but

i think it will lead to changes of significant behavior. right now, they don't have a lot of money in equities. >> i want to go back to china very quickly. largely tainted. it's a hard thing to put your finger on.

i am betting on the cumulative effect of dozens of stimulus measures. there was a conference reported on 40% investors have decided, i think the evidence is seeing

prices of overestimating the downside. >> to the flipside of the negativity, the run-up we are seeing in japanese equities >> it's interesting. if i look back over many years, investors learn the lesson you

don't waste your time. there is less sell side coverage . companies announce action plans. we would have to announce plans to return to capital shareholders. one last point was retail savings. they should put it somewhere else. one last anecdote is they

tripled the retirement accounts. the 300% increase of inflows, i think it could be a signal of something more meaningful. it's a long way to say i think japanese equities could be a less correlated plate. maybe one other factor then it's positive for other pms. for sectors like tech, this is a good place to move our business. >> do you see the discount

starting to evaporate? we will have to see how it plays out. my confidence in japan is higher. this is a space to watch and investors should be tuned in. you get a change, it can increase returns on capital and in our experience, improving returns on capital typically lead to outperformance of share prices. >> >> great to have you with us. still ahead on debris.

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what happened? >> the project in brazil. if you look at the business itself revenues up 6%. copper and iron ore prices up 5%

. from an online business perspective there was some growth in the business itself. >> the nickel market supply will be lasting until the end of the decade. what are we hearing? >> those businesses still make up the lion's share.

the outlook for these is primarily a result of increased supply. we have growth in all the major iron ore. >> another stock we are watching today, blocking the purchase of a banking arm. matt ingram joins us.

you are wargaming the various scenarios. who benefits and how? >> we have set for a while it's a good deal. it's going to return. >> good day for shareholders. >> to your point, what is the impact? >> it's a low return asset.

there is an execution that needs to be done. they giving it a rubberstamp. think it might be. >> the casino giant essay they

are not reporting due to the regulatory probe announced yesterday being carried out by new south wales trying to understand. as we said, it's not releasing first-half results. >> we are seeing quite a good moves. junior employees are seeking to give an on target variable that uses external benchmark data. the new system will apply globally. bloomberg has learned capital

one is exploring an acquisition of discover. the move could rank as one of the largest globally and sources say an announcement may come as soon as this week. south korea's five largest companies are facing $749 million of losses from overseas investments according to data from a lawmaker. you can get around up on the mobile. customize those settings, get the news on the industries and

assets that matter to you.

>> we are taking a look at some of the big movers that is the casino giant and australia. what has happened is it's announced the regulator is launching an independent inquiry. they welcome the investigation but as a result they are not reporting first-half results. the stock is suspended from training. other names we are monitoring,

the watchdog decision here you can see is up more than 6%. it seems like they would be the key beneficiary. the other name is a little under pressure this morning but we saw the first-half profit air, president biden says he is willing to meet mike johnson to discuss an emergency aid package for ukraine and israel. >> they are making a big

mistake. the way they are walking away from russia and nato is shocking. i've never seen anything like it. the u.s. has warned against the assault on rafah. washington has been reluctant to back cease-fire proposals. the crew they commercial ship

and official he has changed the results. still ahead, south korean doctors protesting a plan to boost the number of physicians in the country. we will bring you the details, next. when i was your age, we never had anything like this. what? wifi? wifi that works all over the house, even the basement. the basement. so i can finally throw that party...

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aussie markets. big drop for the company that was suspended from trading on monday and the key headline other names to note pretty much in line, corporate government.

>> running seasons are optimizing the balance sheet. measures are being the drivers going into this year. most companies shown, we

continue to look at data as potentially we do look at the next session. earnings growth at 3.1%. we're looking at the potential that we could see some outperformance of the topics index. looking more appealing from the value point of view and we have seen the huge rally across semiconductors which has driven values up to a three year high. there are expectations that we could see value stocks. >> we will see if we reach the record.

perhaps still not likely just yet. we are also keeping an eye on the medical sector over the longer term. about 1/5 of doctors are planning to walk off the job to protest a government plan. what south korea is prepared bidders to minimize the impact of a strike. >> it's a regrettable decision that goes against the people. if they take such actions, it's a priority to minimize the vacuum. quotes for more, our editor is with us.

give us a bit of context because we know there are fundamental problems in the health care system. >> the problem is the shortage of doctors. among the lowest in the developed world. south rea is rapidly aging by 2000 a year from the current. they see this as a way of increasing the quality of health care. the doctors see this is not addressing fundamental problems but the public seems to be siding with the government. three fourths of respondent like

the plan, there waiting. it's not really currying favor with the public. >> how does this affect health care systems? >> we have seen some surgeries being rescheduled, patients are being told there is a wait. the immediate thing is they are primarily in emergency care. this could slow down the delivery of health care and affect emergency services. we have seen the impact on surgeries. the worry is that it could deal

a devastating blow to the health care service. >> is there any concern that this would take people away? >> is interesting that people have increased in number because of the quota. there have been a direct result of people shifting out and trying to get degrees. the top students going into the chip industry and more of them are applying for admission to

some of the biggest engineering programs to get into the profession and become doctors. >> taking a look at energy, expecting it to fall. should there be any concerns? >> it is a concern crown. expect it to fall.

the main reason is rising difficulties. infrastructure is becoming difficult to challenge projects under development. if they are serious, we need to see investments double the projection. >> which sectors have the biggest growth potential? >> two sectors to look out for

is hydrogen and energy storage. japan is launching a mechanism. korea is targeting our generation. both are generous subsidies to replace subsidies. expect to see lots of movements and also existing coal power plants. we expect export projects to gain momentum. another sector to look out for is energy storage be as they are launching new options.

for example, japan is renting fixed contracts for batteries. similarly, we expect it doubling but storage installations. >> thank you for your time. up, we are live from the singapore air show. this is bloomberg. ♪

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>> the singapore number was at the event with the next guest.

quotes china is keen to make its presence felt. you have make checks. i have with me the director general of asia-pacific airlines. i want to talk about the demand. what are you hearing about how seriously they are looking at this? >> it is an interesting development. the time for delivery is very long. there is a gap in the market. at the same time, they are affecting deliveries of air.

yes. it's a good option to have in mind and i think it is still early. >> you have said before it's going to be a good year for airlines. how quickly do you think traffic can recover? i know you have said pre-pandemic might not be accurate. clicks normal services have resumed. if you look at it, seven of the busiest international routes in the world are in asia. they are as high as they were pre-covid. air cargo is beginning to grow. air cargo is way above 2019

levels. in 2024, we estimate 50% will be in that region. it's a matter of time. it's time to kick that to the curve. quotes focus on the future. chinese new year travel data looks quite promising. u.s. china flights have not resumed. when will we see the full recovery? >> the chinese economies estimate demand will get back to about 80% by the end of this year. i think it is a conservative estimate because if you look at

china, the problem is outbound china. inbound will recover in six months. that's because of the economic situation. it's going to be europe and america. >> do you think the recovery market has moved past? is it grabbing market share clicks you are right. india used to be about 5%?

there is a lot of the gap but india is already at 8%. there is all of ossian and vietnam, so i think 20% is not that difficult but we anticipate it will recover. >> peaking of gaps, the supply of aviation fuel. how do you think it provides costs clarity? >> the singapore government is very proactive and the rest of the world. that sort of thing, the

singapore government has decided to get involved and they are going to buy saf. today they are using every drop. if you give them the chance, they will do so. it shows, how much airfares are likely to go up. >> how much do they need to be prepared? >> at the moment we are talking about price premium. i don't think it is anticipated that consumers will pick up all about.

today's price premium is mainly because of scarcity. >> the hope is we reach those economies of scale. thank you so much for sharing those insights. annabelle: thanks. that was at the singapore air show. we will be back at that event later today, hearing from a number of industry leaders. just a bit of breaking news. haidi: we have more details. we had a scoop earlier talking about capital one and discover financial, we are hearing it will be an all stock deal to be valued at 35.3 in dollars as the

deal will close in late 2024. capital one confirming that deal . this is the definitive agreement and shareholders will receive one share for each discover share. this is capital one with the acquisition confirmed. this would rank as one of the largest deals globally so far. shares are down about percent this year. we will have much more ahead on "daybreak australia". this is bloomberg. ♪

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linked to small increases in conditions after the largest safety study. let's get the details. in terms of the adverse event

reporting, talk us through the findings. >> these findings are not surprising. we have known about the side effects since the vaccines were rolling out. we are seeing inflammation of the heart as well as an unusual blood clot in the brain. none of these findings are new but they are reassuring because they did not find anything else that was alarming. annabelle: it looked at a few vaccine types. was it any difference? >> they did see the increased risk or the brain blood clots in

the astrazeneca virus vector vaccine and also, we saw the increased risk of myocarditis with the mrna vaccines. there were some other interesting findings. one syndrome was shown to be an event of sermon linked to the astrazeneca vector vaccine. otherwise, everything was as we expected. >> we talked about some of those preestablished conditions. today find anything pertinent? >> beyond those events, they did

not see or were looking for other aspects of vaccine injury. increased heart rate. researchers have seen it in higher frequency. while the vaccines were known to be associated, they are occurring more frequently from an infection. this annabelle: thank you for your time. we will have market opens next as we count down to the nikkei possibly reaching its highest level since 1989. this is bloomberg. ♪

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>> this is daybreak asia and we are counting down to a shows market opens. one key watch today is whether the nikkei can reach its peak. not likely to be the day. it feels like waiting for the record to be reached, whether the market has the momentum to get there, we will beyond watch. fed pricing in big earnings when it comes to commodities in australia, we had a disappointment from bhp, watching to see what the next catalyst will be for china. vonnie: