haidi: welcome to "daybreak: australia." i am haidi stroud-watts in sydney. markets have just come online. paul: and i am paul allen. and it created sparked by nvidia's bullish outlook seems markets. the s&p 500 marking its 12th record close this year. haidi: the bed and admit that to be looking into nippon steel's china assets of its deal to acquire american rival u.s. steel. folly: filing for an ipo is raided after two years on the sidelines. haidi: let's look at how asian markets are starting the trading day. we are watching for the final friday for a good in terms of major u.s. stock indices hitting records. it was the nvidia play rekindling the ai rally.

sydney stocks coming online in that staggered open. 0.2 percent higher. we will be watching the tech stocks in particular throughout the course of the trading day. . i should mention though tokyo is not trading today so perhaps we will see some catch up next week given how heavily dominated some of those chip tech and ai related stocks are in that market. aussie dollar at $.61, pretty steady. those bullish dollar bets have started to drop in particular, against some of these china proxy-type which is against australian dollar. u.s. data showing resilience. we are getting some fedspeak as well. but we are looking flat at the end of the trading day in new york. we had four performances being led by the likes of the yen as well -- really poor performances being led by the likes of the

young. this is the picture for kiwi stocks. pretty flat. watching oil markets, particularly energy majors. oil is rising to the upper end of the range on signs that we are setting up for that tighter market scenario. we have seen a tug-of-war between supply and demand and, some of the geopolitical headlines that continue to weigh on energy markets, but at the moment, we are near the top of the trading range. u.s. stockpiles adding to the evidence that we are seeing a tightening physical market. new york screwed trading just above $78 a barrel. looking -- new york's crude trading at just about $78 a barrel. it was quite a session, all three major stock u.s. indexes storming to fresh all-time highs on thursday. this was due to one stock, right, only one stock at that,

and. those results really rekindling the next leg of what we see as this rally. record broken, 277 billion dollars surge in value. paul: there were certainly giddy expectations ahead of that result and it delivered, nvidia surged to an all-time high, the biggest single-session increase in market value in history beating historic again three weeks ago. our next guest's needs that rally in text continuing. let's get more analysis with carol pepper, founder and ceo at pepper international. all indexes closing at record highs in the u.s., an, microsoft up, nvidia up 16%. if you aren't in these stocks, is it too late? have you missed the bus? or is it possible to buy at this levels? carol: it is absolutely ok to

buy at these levels because, again, it's just the beginning of the ai revolution. think of him is on the first year it became public people back there and, said it was too expensive, amazon. it has gone up 20% since it became public. so it is not too late. there will be days when the market is down a bit and those are the days you can getting. i manage money for family offices with over $100 million and we look for long-term trends. this is definitely the trend, both microsoft and nvidia will benefit from this ai trend globally and they are the market leaders. amazon continues to be a solid by, putaway for your college education for your children and you will not be sorry. three names that you just put them away, hold your nose if you buy them, if you don't like the price. nevertheless, they will do well for you in the future because these are running long-term trends. paul: this rally was very impressive today, but it has

utterly extended to all areas of the market, has it? take a look at the small caps index, the russell, falling back towards its 50-day moving average. why isn't the glow reaching this part of the market? carol: this market has tended to favor their leaders. the leaders are getting bigger and bigger. and small caps unfortunately, haven't had time in this market. this is a momentum market. it's going in a certain direction. and there are questions. small caps is a tough place to be, that is why you see a lot of companies now are not even going public until they are practically a large cap, because it's very tough to hold your valuation even if you are fantastic in your area. the leaders in tech keep getting bigger, you need a lot of money to get bigger and the big guys will just keep getting bigger. so for most investors it's better to leave the small caps alone. haidi: do you think the positioning when it comes to fed expectations is a little bit

more pragmatic at this point? carol: yes, i think people are generally thinking the fed is not going to do anything until may, june? people have become accustomed to that idea. but we still see for and the homebuilder stocks starting to move in anticipation of the rate moves. at the summer at the very latest will start to get some rate cuts and that will spur the market. why? because we are in an election year. it makes people happy during an election year, regardless of which party you are a part of. social sure will see those rate cuts,, if not before summer, then in the summer. they can't defend keeping the rates high forever just out of fear. they will have to do a turnover at some point. haidi: there is an argument in terms of the stickiness of inflation the recent cpi and ppi prints show us that, and

certainly the fomc minutes this week .2 the concern that the bisque is to cut too soon and then have to backtrack. listen to what we heard from the vice chair, philip jefferson, talking about this idea of caution in this part of the inflation site. >> we always need to keep in mind the dangers of easing too much in response to improvements in the inflation picture. excessive easing can lead to a stalling or reversal in progress in restoring price stability. , haidi: do you think he has a point there because certainly, given how robust the u.s. economy remains by most indicators, they seem to have the room to be able to hold a bit longer and see how price pressures play out. carol: yes,, as i said i don't think they, will cut anytime

before may because that is what the signaling. they just have a few more months of data confirms inflation is staying down, not popping back up. of course, they don't want to stop and start and look foolish, and they won't do it. that is why i say may or june. but, again, if they get information to around 2% by may or june and it stays there, they will start to cut and that will give a boost to all the parts in the market that need financing, particularly the real estate market. i think you will start to see real estate assets come back to life. there is hope that the homebuyers will come back, the renovators will come back, everybody will start to come back. there are people sitting on the sidelines waiting for that rate cut. once that happens, we will get another pop in the broader economy. paul: before we let you go, i just want to get to one of your

calls outside the u.s. and that is emerging markets ex-china. explained that in two parts, why you like emerging markets, and secondly, why you don't like china. carol: emerging markets are extremely vibrant. and very lucky that i get to travel to places like thailand, malaysia, places to me that have already emerged even though they are still called emergent. there is tremendous vibrant growth in the rest of the world. if you want to be in growth markets and participate, emerging markets outside of china really juicy and they will do very well. it's early enough to get in there and ride the wave of, in my opinion, because they will benefit if the dollar comes down a bit, which will happen if the rates come down, hopefully. and then china, it's an incredible country, i have been honored to visit and i love the chinese people. but the economy is in the doldrums. women don't want to have babies, they don't like how they are being treated over there.

and you have a lot of internal social problems in china which are impacting the economics of china. there is only so much of the government can do to prop things up. it's not the most attractive place right now. i would rather be in thailand and malaysia than in china right now in terms of investment, certainly in singapore, rather than china. paul: carol pepper, founder and ceo at pepper international. let's leave earth -- we will look outside of earth and look at the control room here for the odysseus mission run by intuitive machines of houston. we are waiting with bated breath for the possibility of the first ever private moon landing to take place. this is due to touchdown imminently. its destination is 300 kilometers from the moon's south pole. it is viewed as a possible landing site for potential accrued nasa missions in 2026.

the softball is interesting for both governments and private missions, the southpaw. there is ice and they that means water for fuel, and a prerequisite for life as well. we are waiting to see if this first ever private moon landing is successful or not. we will know very, very soon. plenty more to come on "daybreak: australia." this is bloomberg. ♪ >> great callouts in between our prop council and-hour flight manager, calling it as the data is feeding into the lender which means we continue to have good communication, the lander is sending that back to their control. this is something we prepared for, we planned on, is a loss of communications. >> good control. >> good thrust control call.

paul: president biden's administration is said to be examining's nippon steel connection to china, a potential stumbling block for their to acquire -- for their bid to acquire u.s. steel. what do we know? could this be enough to scupper the deal? joe: we know what they have published. they have nine facilities inside mainland china with 3.6 million tons of steel making. to be clear, the steelmaking is downstream, like wire rods, not wrought steelmaking the way people think, it is typically value-added products. 6.6 million tons of capacity out of a 6 million ton capacity portfolio is quite more. the report today was that the biden administration is looking

at it because they have the comes learn. -- they have some concern about it, partly because it is china. even though nippon steel is a japanese company, is not like they are in unfriendly territory. i think there will just be questions around what it is those operations actually do and how it might impact the u.s. market, if at all. but it is interesting that it has come to light, especially as so much of the focus has been on a cifius review. but the biden administration looking at these assets in particular, it is worrying. haidi: aside from that there is political, labor union-type opposition to this deal. does the election-year make a difference in how big of a challenge is going to be? joe: you nailed it. in a lot of conversations with people in the market, investors

and analysts and buyers, everybody looks at this deal and they are, like, it's a great deal, $55 billion in cash, nippon is well known globally as a steelmaker. that listen, the union has made clear of the beginning that they only wanted it to be bought by relentless. that comes down to the workers saying we trust cleveland-cliffs because they kept us all in other jobs. the labor union matters to joe biden and donald trump because it is obvious that these blue-collar workers are the kind of people that got trump over the line in 2016, they got biden over the line in 2020. u.s. steel is in a battleground state, pennsylvania. i think both these men want these both embrace this deal, the united steel be sold to

nippon steel, the workers behind it being symbolic and all of this. paul: metals and mining reporter joe deaux there. some political headlines we are tracking, israel is pushing ahead with this goal to move about one million civilians from the gaza city of rafah ahead of an attack. prime minister netanyahu says of that is underway, but privately, officials have acknowledged they have no precise strategy on how the evacuation plan will be carried out for where people go. documents from a shanghai-based cybersecurity vendor appeared to outline state-sponsored cyberattacks on foreign governments. the file, seen as offensive by experts, appeared to show successful attacks in 2021 and 2022. targets include the uk's foreign office, the royal thai army, and noodle secretary-general jens stoltenberg.

haidi: it marks two years since russia launched its full-scale invasion into ukraine on saturday. political infighting and delayed deliveries and aid are affecting . the conflict in the middle east is also diverting global attention. our editor is here. we talk about the idea of bandwidth for allies. terrible as it is, the conflict in gaza has been a distraction from what we know is still ongoing fighting in ukraine. michael: totally right, you can only deal with one crisis at a time if you are committed to it. obviously the attack on israel, for the u.s., for americans in general, this is something that is very close to them and honestly has taken a lot of attention, but it has drawn away from what is happening in ukraine. and as you outlined there, it is running to get problematic. ukraine is starting to ration

emanation because it is not enough. we have infighting in congress, democrats have linked the aid to ukraine to israel in order to get a better chance of it passing. in this conflict between ukraine and russia in ukraine, it's a bit like world war i, the defense tends to be stronger than the attack unless it has got overwhelming resources. so ukraine raised a lot of hopes this summer that it would be able to make further gains after it made strong gains that first year but, it has not really happened because russia built up really strong base there. now we are seeing russia start to push back it has more human resources, all the soviet stockpiles of weapons and missiles. ukraine does not have the same resources and obviously, is struggling to get hold of additional ones as well. paul: we have also had president biden meet the widow and

daughter of alexei navalny who, of course, died inside. this week. more sanctions against putin have been promised. what is the effect of those sanctions so far, and what more might we expect to hear? michael: biden, it was not on his agenda really. he met with yulia navalnaya and navalny's daughter who studied in the u.s. at stanford university. biden handled it exceptionally well, just to track off a little bit, he is very good and what he did there, but you are right. up to the two-year anniversary and sanctions are expected. they have been done as much harm to the russian economy. it's the broader assumption of a country. we saw what they did to russia two years ago. it did create some blips, et cetera but at the end of the day, russia managed to reorganize itself.

to some extent, it didn't require too much trade, the soviet union, and russia still has a lot of resources it can rely on. the military-industrial complex, the soviet war machine that has been supplied with all these arms, will be targeted. and third countries that are also helping russia get goods and parts. russia has put itself in full war mobilization with its economy, so these are good targets to hit. but given the scope of the sanctions when they were first put in and the lack of damage to the economy there, these look more symbolic than anything else. paul: bloomberg's michael heath there. plenty more to come on "daybreak: australia." we will look at that historic mont.landing attempt in a this is bloomberg. ♪

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>> yes, we are willing. >> we are tracking here in the broadcast booth. >> reestablish columns, standby. >> mission director beating us to it. we have reached the expected time of landing and now it is the process of waiting for communications. we are in standby mode, as you heard from the mission director, dan crane. paul: we are watching a very tense control room there for the intuitive machines landing.

starting to hear from the lander. we will know if it is successful. we anticipate some pretty big cheers. haidi: this is the space exploration start up intuitive machines attempting at this minute to put the first u.s.-made lander on the moon in 15 years. the spacecraft is expected to softly land on the moon's surface, the successful mission would be the first time that a private sector company has put a lander on the moon in one piece, really significant when it comes to the progress we have seen, and the renaissance on the u.s.-based exploration. paul: not just u.s. space exploration, but the global push now, not just governments, but a number of operations. this would be the first successful mission to land on the moon.

soft landing is the key. a hard landing is pretty easy. [laughter] the russians managed to do hard landing last august, made a crater on the surface of the moon when doing so. we heard the control room talking before the how they have hazard detection lasers, the craft is fitted with its own software that allows it to choose its own landing spot. the hope is that it chooses wisely and achieves a soft landing. haidi: last time nasa managed a soft landing on the moon was doing the apollo program in the 1960's. this is part of a bigger ambition, right, the last five years, nasa has been focused on sending vehicles and people back to the lunar surface as part of the artemis initiative to develop a sustainable presence on or around the moon. paul: and the landing site in this case is key to that. near the south pole.

there are deep craters there and a lot of ice, which means a lot of water there and i could be used for multiple purposes, including splitting the water into hydrogen and oxygen. you can use that to make rocket fuel which opens up all sorts of opportunities for exploring beyond the moon. still keeping an eye on that control room, awaiting the news. so far, standing by. if this landing is successful, we will bring you pictures of the craft touching down. we are waiting to see. very intense control room there. we will be back in a moment. this is bloomberg. ♪

paul: let's take you back to the control room for intuitive machines where we are awaiting news on the success, or otherwise, of the or dcs moon lander. if successful, it would be historic for a couple of reasons. firstly, it would be the first private landing to the moon and secondly, a return of the u.s. presence in 52 years, after the final apollo mission. no word yet from the lander, we just heard some chatter from the control and before that they will use the 32-metre wide dish looking for the lander. haidi: 16:30 was the expected landing time. we will bring you pictures as soon as they get to us. , like you said, this is complicated. in january we saw another

partner with nasa, part short program with nasa, a company that failed to put a lander on the moon and had to forgo the landing afterward had an engine mishap in space. we are now getting confirmation -- they are trying to work to confirm that intuitive machines are working on being able to bring us that confirmation of a signal from the moon lander. so much is at stake in terms of what they're trying to achieve. paul: we should not under emphasize how complicated this is. it really is a coin toss in terms of success or failure, pretty much 50-50. they have been tan attempted one landing since february 2019. just three have been successful, one from china, one from india and one from japan, all government-backed. all the private missions have

ended in failure. india was interesting because it sat down near the south pull of the moon, a critical destination because of the water rights in the aream we saw updates when it come to the indian mission. open insertion, entering lunar orbit. there have been steady updates from intuitive machines on your blog actually. we saw a bit of action when it comes to its sharing, twice the volatility ahead of this. the first trading pause following a sudden 21% plunge. . we have also seen some interesting trends in terms of how this is funded. a lot of these expeditions have been privately funded. nasa paid money for this mission, 77 william dollars awarded back in 2019. this company, if you are

wondering, has created, or once to create a business out of transporting customer payloads and. experiments to the surface of the moon. this particular trip is carrying six payloads for nasa and 54 private customers, including sculptures for an artist. lots of interest in this mission for numerous reasons. that is important. the moon needs that. paul: paul: but just listening to some of the commentary in the background there, as you can see, intuitive machines is trying to confirm that signal from the lunar lander. perhaps not particularly a good sign. they are now employing the services of a number of dishes around the world, one in the u.k. and also one here in australia. they are using the pax

dish in new south wales, to search for the dcs lander. it was instrumental in the initial apollo moon landings way back, 52 years ago. so if this mission is successful, this will be the first u.s. craft on the moon since the apollo missions, and also the first private lander on the moon as well. really hard to do this. no other private mission has succeeded in this, they usually land in the lander's getting past the moon. haidi: still waiting for confirmation is the intuitive machines -- they say they are working to confirm the signal from the moon lander. what they have been talking about for the last 15 minutes or so is the autonomous systems they have as part of this vehicle to try to troubleshoot essentially after 15 minutes if there is no communication. part of that system will then kick in for the next stage.

we will continue to watch this as part of this broader attempt to put the first intact u.s.- made lander on the moon. in more than 50 years. talking about the possibility of taking a guess another half, an hour these 15-minute phases to work out what exactly is going on here. they have been doing these sleeps, trying to locate where that lander is. if successful, it would be the first time we see a private company putting a lander on the moon in one piece, so obviously a lot is at stake here this has formed has been part of a recent number of projects and endeavors by nasa in the last five years, to try to send vehicles and people back to the lunar surface , the artemis initiative, to try to develop that sustainable presence on the moon, around the moon, and ultimately the idea that potentially, we could learn to live off other worlds as

well. so a lot of that payload when it comes to the scientific experiment is very valuable. there is commercial payloads as well, five from commercial customers. if you are wondering how to invest around this, we have had so much volatility when it comes to intuitive machines. it is up around 250% so far, this year. 's evaluation of almost $900 million. but a lot of volatility that saw that stock being paused for trading twice. it was a 21% plunge at one point in the course of the day. it is up 1% in the past three sessions. --about 14% short interest in that, paula. paul: certainly a lot of interest in the space.

intuitive machines working to confirm the signal from the moon lander. it could either be very bad news, or there was an expectation that this could be the case. intuitive signaled there could be a slight delay between when the lander makes contact with the surface and when we get confirmation of that landing, they say the delay previously could be as little as 15 seconds and, it could be as much as several minutes. we are heading into several minutes now which of his legs a bit of a concern. [applause] paul: we have some applause. it's got to be good news. >> a call from our mission director, tim crain, and from ceo stephen altemus. >> a few words to the entire team at intuitive machines and here in the mission control, what an outstanding effort. i know this was a nailbiter. but we are on the surface and we are transmitting. welcome to the moon. houston -- so dcs has found its new home --

for dcs has found its new home. >> excellent call, this is our team of intuitive machines mechanics and their families and friends, everyone who has done so much to make it this far. paul: there you have it, history made. the fifth of private mission to land on the moon. for very chance few minutes. there was concern that the lander had not touched down. a lot of celebration the from the team. will get pictures of the landing of both when we get them. the landing was filmed and will get to see it soon.

haidi: they intends 15 minutes, intuitive machines confirming that the lander has reached the moon and is transmitting. let's welcome our guests. what is the significance of this? >> this is the first private landing on the moon, a project that was backed by nasa as part of a program that nasa has working with diverse companies. there have been several attempts by companies to send spacecraft to the meeting as this is the first one that actually has touched down and managed to continue communicating. there was one attempt earlier this year by another american company that never actually got to the moon, there was a japanese company called ispace that tried last year, they actually got to the moon but the landing was not successful.

there will be more attempts. this begins a new stage of explanation on the moon in which it is not just space agencies going there, but companies that have their own spacecraft that are going to the moon. it could eventually lead to more commercial activity on the moon, very different era in terms of what takes place on the moon. paul: certainly an exciting development, bruce. i want to underline that we will have pictures of that landing later on when we get them. . that's a really hard part. , touching down softly. . what work now begins? bruce: the key thing with this mission is actually that into the moon. anything else after that is gravy, as they say. so once we get more information about the status of the vehicle, we will be able to say more about just how successful it is.

but the fact that it has landed and they say they have communication with it, that is a real breakthrough. also worth noting here, there will be a lot of other activity in this area, focusing on the south for love alone -- south four of the moon. it's a region that many people believe there are reserves of ice that can be used to make oxygen and hydrogen that could eventually lead to longer-term presence, human presence on the moon. china has a mission that will be going to the moon later this year, part of a program that the chinese have that eventually would lead the chinese astronauts going to the moon. the united states, of course,'s as part of the artemis program, also wants to be sending astronauts to the moon. so there is every between the u.s. and china, both focusing on the south pole. india last year, landed a

robotic spacecraft near the south pole, the first trust to do that. the russians attempted last year that failed, but they said they will continue trying. there are other countries as well. there is a bit of a one race and little seymour activity. haidi: our global business reporter bruce einhorn with the latest. disconfirming, u.s.-made spacecraft landed on the one for the first time in over 50 years. the second for a number of factors not least of which this is what we are seeing when it comes to the first private-sector landing mission. the startup intuitive machines putting the first u.s. made contact lander on the moon in 51 years. we continue to bring you more, including those pictures of the landing as they get to us. meantime, take a look at what we're seeing when it comes to trading across the region. a pretty robust session, meme stocks, about 45 minutes into

the start of the session, zero -- 0.5 hire. we were expecting a good session on the back of the huge rally in the u.s. and europe, not to mention, japanese stocks hitting a record high in the asian session. kiwi stocks are up 0.2%. teachers looking mildly positive. let's bring in bloomberg mliv canterbury garfield reynolds. you have been sitting here with us. lots of comparisons to be made with going to the moon and what we are seeing when it comes to the equity valuations. garfield: i was also thinking about the soft landing that was required. [laughter] but it was ironic, you know, the way the market got so concerned going to nvidia. it seems to happen so often that the market gets worried about earnings, and the earnings, and better the next acted.

but that should not detract from the fact that nvidia earnings were so much better than expected. the big test was would it push on and with the rest of the market for sean today? they went past the dip, back up to where they have been and beyond, beforehand, they very much achieved that. we will see how things develop in the next few days. but the markets are very much bookmarking this as, ok, this turned out to be the moment when we could really figuratively say, this is a game changer. we do expect that nvidia can go on performing this way. if it can go on performing this way, then we are looking at a transformative technology when it comes to ai. we will get that extra boost to profits, to economic activity. that is why it is spreading

elsewhere. it is not just the magnificent 7. it makes everything look shinier because it is glowing so very, very brightly. paul: one of the places it spread to is japan, chipmakers doing well. we cracked that record for the nikkei. can the nikkei push on as well? garfield: plenty of signs that it can. japan is on the verge of its on apparent transformation, a transformation that the bank of japan has been working away at in various ways for the last decade or so, you can debate to what extent those policies ultimately ended up pushing it over the top. but it is looking like the deflationary era is done with. there is also obviously, averill has been played by the disenchantment with --

obviously, a role has been played by the disenchantment with china. the stock market is not as small as it was, whereas japan has a much bigger, much more developed markets. it does have plenty of sectors that, as you mentioned, can benefit from it. japan looks like it is willing to go higher, although in and of itself, the move past the former nikkei hyatt reminded us all that part of the reason why markets did get so nervous and that those nerves could return, is you had the example of the nikkei in 1990. it was the ultimate example of stocks don't always go up. you can go up so high that when you come down from there, it takes a long time to recover. so i think there will be, some consensus is that it will look to be nimble and there will be a

worry that there could be situations where things turn sour very quickly. at the same time, it hard to resist the kind of global fomo that is sweeping the markets. paul: our chief rates correspondent for asia and mliv contributor, garfield reynolds there. more to come on "daybreak: australia." this is bloomberg. ♪

haidi: let's look at china now. every report by a real estate agency says the number of foreclosed properties for sale in the country roads 48% in january from,. home prices data in china is due in a few hours time. this is pointing to more downside pressure on the beleaguered property sector. zerlina zeng is the head of east asia corporates at creditsights. good to have you with us. we have seen some measures, some significant and some more piecemeal from regulators in china. that made identity in the problem. darling is -->> the

slew of support measures, that it ever really did not improve that much. i think the chinese households are very unwilling to put on leverage, as well as the software macro backdrop. it will be very hard to see a visible rebound despite of these supportive measures. haidi: when you take a look at what investors are expecting as the next measures from regulators and policymakers in china, what would be the best-case scenario in terms of more support, given we know that this is a sector that supports -- that affects so many other parts of the broader economy? the best-case scenario would be in notable easing of home purchase restrictions in tier

one cities. the measures are piecemeal currently and only related to several areas of tier one cities. if authorities can do away with all the home-purchase restrictions in tier one cities, it could be a confidence boost to chinese households. on the supply side, regulators really need to address the ongoing distress coming from-nonstate linked developers. they have been getting support through banks and real estate sector, but many lenders are still favoring state back to developers. private ones are facing a lot of distress and the debt restructuring process for many of them is currently stalled. if regulators can direct funding more towards the privately-owned developers, it could help also resolve the market distress, and also the homebuyers' concerns in terms of buying from privately

-owned developers. paul: paul: never mind the troubles, but what opportunities do you see in china investment grade credit? zerlina: it's quite interesting. despite their nonperformance of china equity over the past 12 months, the china investment grade credit has been doing quite well. this is for a few reasons. first is the macro-economist soft, but not really did railing there is no new supply coming from greater china region. so this technical tailwind is very strong. overall, we still see opportunities in high-grade china attack and some of the soes for putting on duration just because a long duration assets are quite limited in asia investment-grade space. we also like some of the bbb rated names just china tech, amc and others, some property names. they will ride the risk rally. that said, i think after a few

months of the rally, the valuation has been very stretched. we would recommend investors to wait a bit, be cautious and wait for a better entry point. paul: zerlina zeng, head of east asia corporates at creditsights, thank you so much for joining us. social media form reddit, has publicly filed for a u.s. ipo and the listing could be 2024's first major test for the market for a tech startup backed by venture capital. so more, let's bring in our senior editor in technology, tom giles, and francis sisco. i think it was two years ago that this was signaled. why hasn't been so long in coming? tom: it's been a long time. we have been waiting forever, it seems, since they filed confidentially for an ipo. you will recall the last couple of years have been really rough in the ipo market. there haven't been a lot of companies going public, the

stock market has gone through a lot of tumult. in previous years, concerns about higher interest rates, inflation, the economic slowdown. and now in the recent several months, we have gotten more clarity from the fed as far as whether inflation is under control and when interest rates will reach their peak and start coming down. that has given people in the market a lot of breathing room. a big sigh of relief. and we're seeing that with companies like reddit finally saying, we finally might be ready. markets are looking better, looking more encouraging. your see more optimizing. haidi: you are also seeing optimism from shareholders. do you think we could see more collaboration with ai?

zerlina: something they have written about in their filing is that they see the opportunity for lots of license kind of agreements when it comes to taking their content and letting these makers of large language models that will be used for chatbots and tools like chatgpt. they see that is a big area, a big business of -- big area of growth for them in terms of revenue. that really helps them as they think about how to have conversations with companies like openai. they just announced a deal with google today and we might see more of those coming down the pike. haidi: tom giles in san francisco. the market opened in seoul next. this is bloomberg. ♪

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haidi: this is "daybreak: asia." we are counting down to asia's major market opens. we finally got to 90 80 94 the nikkei 225. japan is away on holiday so we are focusing on other things. they are missing out on an incredible post-nvidia earnings rally. paul: it is the emperor's birthday, just a coincidence. [laughter] but were they trading today, we would expect to see that japan tech rally continue. we are expecting that in the kospi. but what a rally. all the indexes in the u.s. hitting records. haidi: people say well, is this the peak of the ai frenzy as dominated by just one name, nvidia? and of course so many of these related names will be the ones to