>> good morning. s this bloomberg daybreak. these are the stories that set

your agenda. china sets an ambitious growth target around 5% for the year. premiere league said success will need policy, support and efforts from all fronts. tech stocks driving losses in hong kong. this is amd. selling advanced a.i. chips taylors for china. the supreme court rules donald trump can appear on the ballot. we bring you the latest in the race for the white house. let's check in on these markets. a more aggressive target in terms over the economic growth picture for china, around 5% given the low base that last year's growth target was set at. that seems ambitious. the question is how they get there of course. so far looking at .3% after modest losses yesterday. the ftse 100 futures pointed to

losses 19 points down. s&p futures at 5127. the amd story, semiconductors will be in focus for us ginn they have failed to get the green light. nasdaq futures at 18193, off by .4%. let's look at the like of gold and crypto today. bitcoin in focus. techs taking the biggest drop since january. down 4.5%. we can tie some of this maybe to the supreme court decision around donald trump and the political focus and political lens as we lead up to that election in november. maybe part of it is the mpc story and disappointment around details. euro-dollar around 108. gold closing in on a record high.

currently at 2118. the record high at 2135. so we have grown higher. bitcoin about 66860. in terms over the moarmt um moving towards a record in terms of bit danny record being just below 69,000 in 2021. raise it expect aces of more stimulus. speaking at the national people's congress, the chinese premiere announced ambitious targets have been set. >> the main target for development this year are projected as follows. the gdp growth of around 5%, it is not easy for us to realize these targets. we need policy support and joint effort from all fronts.

tom: ok. let's cross over live to beijing and steven engel standing by for us. how difficult will the target be for growth? how challenging is this target for officials sitting there in beijing? >> the premier admitted it is going to be a tough task to do this. he is the guy out with a hand on the lever to make that policy happen. that has been the problem so far. policy has kind of come in a piecemeal approach. again, they are pledging and using a pretty ambitious growth target to say that we can hit this and they also have a pretty aggressive cpi target of 3% when right now we have had entrenched deflation at the factory gate as well as retail stores. we have to figure out how they are going to get from point too much point b with what kind of stimulus and what kind of

growth. what is the level of growth that is going to be needed because around 5% is the same target as last year. there are basefects and entrenched head wednesdays that i just mentioned. the distress and the fiscal coffers at the municipal level is still there if not worse. there have been some measures as well to alleviate the burden to provide growth at the munis. level, long-term bonds to the tune of 1 trillion yuan. is it going to be enough to reach that goal? the chinese government has a very good track record of meeting their targeted goal so we will have to kind of wait and see. that's why there is a mute it response on the markets now. they want more specification in terms of what kind of fiscal policies -- they are going to have their annual press conference tomorrow.

tom: we'll keep an eye on the pboc and that press conference tomorrow, steve. how much stimulus is expected? as you said they normally meet those growth targets. how much stimulus is expected? >> well, they are not going to big bang. that is an overused terminology. they have refrained from that as jinping has jinping has emphasized. a fiscal discipline and essentially -- and deleveraging. they would of course like -- and when the falling knife is happening, very few families are reaching out and grabbing on the that because prices have been falling. they would like to see him mention they want to get more

big ticket items sold, they are going to have a trade-in program for big products and do more incentives for new or electric vehicles. they just want to kind restore the confidence from the consumer but how do you do that? that is the big question. i think this is going to be a slow, slow process of continued policy adjustments but no big bang fiscal stimulus with shovel-ready projects. tom: bloomberg's knot asia correspondent with us, stephen engel. let's cross over and get the asian market reaction. abram? >> yeah, we're seeing a very mixed picture as you flagged previously. managing to eke out gains of half a percent. the utilities, the energy release on that that are helping

boost things but if you look elsewhere, we believe disappointment coming through, investors were hoping for more support for the property sector at least some signs that the government is coming in to stabilize the market. we didn't get that. we didn't get further signs of support for consumers. i'll get to the movers in just a bit. flagging here what we see in the real estate numbers, the counters here including china -- this is the second largest developer by sales. chinese insurers have been flagging the debt risk there. today we're hearing from them and it says it has the funds to make a dollar bond payment next week. still it is lack of support coming through from the npc. pressuring the chinese developers in hong kong. also a look at what we see in japan as well. it is very interesting today, we're seeing the construction. the general contractor, obiashi.

that is lifting the other construction-related stocks on the topics and it is really interesting how it its sectors that are taking turns to lead the market bus nikkei has pulled back. hang seng tech is where we're seeing the bleed today. it is the consumer related -- those are the key drags despite some of these chip makers managing to pay some of the earlier losses thanks to china reaffirming its self-reliance in technology. you have to wonder where this is going to go with u.s.-china tensions at play, tom. tom: amd is set to hit a u.s. government roadblock. for more on this bloomberg scoop, let's bring in peter, an

executive. what is the significance of this abd roadblock for the u.s.-china relationship? >> well, this really underscores how serious the u.s. is in its efforts to try to block china from getting some of these ai technologies. so important commercially and also for military operations. amd has been competing more aggressively in this field more recently. when the u.s. first imposed restrictions on the ability to send these chips to china, nvidia was hit with that. we knew that amd has been stepping up its competition in this field. what we found out in this story is that amd has tried to redesign it ai chips so they

could sell into the china market. they went to the commerce department so they could get an exedges and the commerce department said this chip is too powerful at this point and they would not be able to get that exedges fliers now. they may go back to the drawing board. and to try to sell it in the china market. tom: what could this mean for chinese companies trying to build out their access? >> chinese companies of course have been trying to build their own ai services in competition with chat gpt. they have been quite aggressive in this area. they have stockpile chips. they bout nvidia chip ps. this is going to make it more difficult for them to get they are a hands on these chips. looks like they are going to be cut off from amd's most powerful

chips too. their options are getting quite legitimated. there are some attempts to develop these chips internally. huawei in particular is working on a chip. not the quality or power that you can get from anna videoia chip at this point. tom: thank you. now switching focus. cease-fire talks between israel and hamas appear to have lost some momentum putting a damper on hopes of an imminent stop to fighting. are we any closer to a cease-fire at this point are have those talks now been derailed? >> hi, tom. it seems as if we're not -- a deal is not imminent. there is no signal yet that israel is going to send negotiators to cairo.

it has now been three days. it delayed this decision. israel wants hamas to give it essentially a breakdown over the well-being of the remaining hostages and letting it know how many of them are still alive. that is something that is very unclear. israeli sources said they thought about 100 hostages were still alive in gaza. the number may be a lot less and they want to know what the status of those captors is because they send a high-level delegation to cairo. there is still a lot that the two sides need to work out although -- and they have broadly agreed to something like a 35 or 40-day cease-fire in return for about 40 hostages being released. a lot of details still need to be ironed out. the bigger picture here is that hamas would like almost certainly like a cease-fire that is long lasting whereas israel

does not. it keeps saying whatever truce is agreed to should only be short-lived, as i said maybe around six weeks but after that, the war must continue. israel argues that it has no choice but to continue fighting until hamas is destroyed and there is still several thousand fighters at least from the group and most of those we believe are held up in rafah in the southern city close to the egyptian border and israel says a ground offensive on that city on rafah mist happen at some stage. if there is a truce, those plans might be changed but for now israel is sticking to its stance that an offensive on rafah must happen. tom: thank you for the update. we will continue to monitor that

story for you of course. we're also going to be looking ahead as well to south african gdp. the growth pitch coming through at 9:30 u.k. time. we in an election year for south africa. meanwhile more data out of the u.s. u.s. factory orders looking for ism services. that is on the data front. on the politics of the u.s., it is super tuesday. we're going to get the breakdown of this story. donald trump expected to cement his grip on the republican -- respected republican nomination. we'll see how that all plays out. big day for the primary in the u.s. coming up, can china pull it off? we're going to be taking a closer look at the economic targets set this year and the stimulus likely needed to get there. that is next. this is bloomberg. ♪

tom: welcome back. happy tuesday. happy if you're apple looking to the sales in china. the lines cross now in terms of iphone sales, iphone sales in china declining by 24%. 24% over the first six weeks of the year pushing the iphone maker to fourth among smart phone vendors in the country. they have seen ramped up competition from huawei in particular. the channel is once again for apple in a market where there are bans from some government agencies. talking of china. china has set the stage for more stimulus after unveiling ambitious economic targets for year. it is hoping that gdp growth will hit around 5% and a fiscal

deficit of 3% of gdp. a hint over the stimulus to come, there are plans for a trillion yuan of ultralong central government bonds this year. i believe that is only the fourth time they have issued those central government bonds. bringing in now a chief economist at icbc standard bank. thank you for joining us this morning. michael petis said there were no surprises or immediate solutions from the people's congress. do you agree? >> i do think the annual sessions is meant to be a surprise especially since much of the tone has already been set in a central economic work target. what is very obvious is that the emphasis is very much on fiscal stimulus. 100 billion worth of special local government bonds this year. we have v had two successive years of very much supportive special and this is the fiscal support that is necessary. really to supplement the

monetary policy ease. actually if you talk about surprise that is one there. other one is actually the reduction in per capita energy consumption. 2.5% lower is the target. we have not had a new mair cal target this year. this is another surprise out of the report. tom: interesting. how do they get -- it has been seen as an ambitious growth target. how much more fiscal stimulus is needed? >> it is ambitious from the perspective that maintaining 5% is becoming increasingly difficult. many reporters have already pointed on that. more importantly, there are 10 almosts of the government work report that was pointed out today. top three is number one modernized supply chain. we talked about domestic brands and producing that modern capacity of supply in china is the number one priority for the authorities.

number two is development. higher quality dwoment development rather than just emphasis on gdp growth and number three, very important, is to really encourage domestic consumption. domestic consumption, confidence in consumption and investment remains a key challenge and target for chinese authorities. tom: ok. of course developing a has been a long-running aim of officials in beijing. we know that consumer sentiment has been crushed in recent months or at least over 12 months or so. how do they revive consumer sentiment in china? what are the policy tools they need to reach for? >> throughout 20, if it has been really a mishmash of expectations. markets are looking for short-term support. i think policy makers are continually looking for long-term gain rather than any short-term immediate relief. so that is why we have had the

lack of confidence. of course other areas particularly the property sector has been particularly important for lifting market sentiment. recently we have seen succession of supportive measures particularly in the stock market to really ensure the markets that are still plenty of policy support in place. it is about the timing. how do roll it out. how to target it and channel it to the right areas. in immediate aftermath of the two sessions, we will likely also still see more policies being announced and implemented by the various ministries. tom: i know deflation clearly is concern for officials in beijing. they set it for 3%. is that realistic? where are we in your view? >> i think the risk of deflation in china domestic is very realistic. if you go to china, yolk see

price cutting everywhere. that is reality. that said, i think other areas in terms of food and others, we sh may see some moderate changes in cpi and inflation. i think we may see the impact of price cutting coming out of china. but that hopefully will be offset by increasing consumption out of china and that will have implications for global prices. tom: ok. we'll watch to see whether that increase come thrus in the chinese markets. chief china economist at icbc standard. plenty more coming up. stay with us. this is bloomberg. ♪

>> we're expecting half a percent gdp growth in 2023 and looking forward maybe that landed somewhere between 2% and 2% in 2024. still relatively low gdp growth. perhaps like many countries in the world it seems that inflation has firmly peaked. interest rates remain steady in the second half of 2023 and we are expecting 75 basis points of interest rate cut manages the second half of 2024. tom: later this morning, we're going to get south african gdp data expecting growth to have recovered in the fourth quarter of last year. jennifer is in johannesburg with the details. how sustained is it likely to be?

>> top, really the good thing is that it seems like at least according to most analysts that south africa nearly avoided a technical recession. increasing about .2% in the fourth quarter of 2023 after contracting in the third quarter of 2023, a lot of that is due to household consumption increasing helping boost retail sales during the festive season and have seen improvements in electricity production. we have talked on the show quite a bit, this has been a hamper to the economy costing about $21 billion in 2023. so technically good but the question is what does this mean going forward and if we take a look at what bloomberg economics anticipation, they believe that we will poem see growth in first quarter of 2024 but the logistical challenges still remain and have really been the thing holding back this economy talking about transport rail

lines, electricity and so we really need to to see some meaningful progress here to actually see growth continue to expand into 2024. as we mentioned that was mike brown saying he expects 1.2% increase. bloomberg economics also anticipates that. tom: thank you very much indeed. challenges for south africa. china sets an official growth target around 5% for 2024. stay with us. this is bloomberg. ♪ hi, i'm katie, i've lost 110 pounds on golo in just over a year. golo is different than other programs i had been on because i was specifically looking for something that helped with insulin resistance. i had had conversations with my physician indicating that that was probably an issue that i was facing and making it more difficult for me to sustain weight loss. golo has been more sustainable. i can fit it into family life, i can make meals that the whole family will enjoy.

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♪ tom: good morning, i'm tom mackenzie.

china sets a growth target of 5% but the premier says success will need efforts from all fronts. chinese stocks full. hstech drive slow as amd hits a road block. supreme court rules donald trump can appear on the ballot, the latest in the race for the white house. breaking news. capital market stay in london looking at core eps at 1.85 euros. structural changes remain and option, but investors are looking at changes. sales are a beat.

those are the top lines. there is a focus on structural changes. suggesting there are not any changes yet, focusing on divestments and litigation risks for roundup weed killer and lawsuits continue to play out. china setting a growth target of 5% and setting a deficit target. interesting given deflationary pressures. european stocks ended flat. ftse futures are down. modest downside across u.s. stocks. nasdaq point to losses of 5%.

a&e failing to get the green light to sell chips in china. looking at chips this morning. let's look at gold, bitcoin and euro-dollar. the focus is on market reaction to the national people's congress. tech stocks are feeling the squeeze in hong kong, down 4%. gold on a record. 2160 per ounce. in bitcoin is down a 10th of 1%, just shy of 69,000. china setting a 5% growth target , raising expectations. li qiang acknowledging

challenges. i'm joined by mark cranfield from the markets live team on beijing. give us your assessment on markets. mark: investors are disappointed , although targets look ambitious, a 5% target for a second year higher base looks tough. maybe the one that is disappointing is the fiscal deficit. and a lot of people were looking for a 4% or greater deficit, so the deficit is not adequate considering the problems that china are facing and getting consumers back on track. people are not impressed.

there is a suspicion that on shore stocks are getting behind the scenes support. hong kong was being hit by the amd story, certain tech features are not being sold into china, hurting tech names. people probably want time to digest, but headlines do not match the feelings. investors are getting the same gradual approach as before. monetary authority will speak tomorrow, no urgency to lower rates. tom: they were never going to get the bazooka. transparency is lacking.

the bitcoin rally continues. is this froth or does the signal there is froth? mark: we are moving toward a having of bitcoin every four years. the target number is 210 million. then they have to bring in the having and it's likely before the end of april. once you get that, there is a selloff i met have been the last few times. we ramp up and a lot of new etf's introduced, bringing new money into bitcoin. there will be a selloff, but the investor base is broader than

it's ever been. that may give it stability and if you look at tech stocks with ai, people will say bitcoin does not seem ludicrous, so you've got comparisons which people are saying crypto is not extreme. tom: 60% gains for bitcoin. have not gotten your views on the next coin. thank you very much for the market reaction. u.s. supreme court saying donald trump can appear on ballots. the decision overturned a colorado ruling barring him from

running again due to overturning his election loss. states are holding primaries on super tuesday the biggest day so far. it was not a surprise. why the significance? >> and a lot of people expected the court to rule in favor of trump but the surprise came in the unanimous decision. they look united, but the reasoning are complete different. liberal justices are saying it's not a question of whether he engaged in insurrection but whether states can enforce the constitution, so they went into the technicality and it is only congress who can make the decision.

states have gone overboard in removing him from the ballot at a crucial time. the noticeable absence was no one mentioned insurrection or addressed it, even though it is assumed the conservative justices were protecting trump. he is on the ballot. tom: the supreme court ruling is clear on that. implications for trump and biden, what do you expect? >> seems it will be trump versus biden but it is not official because trump needs the nomination and to secure most delegates up for grabs.

he has a 64 point national lead over nikki haley so it seems like you will get delegates but eight hundred 65 republicans are up for grabs, if he gets this, it is assumed nikki haley will back out of the race. can trump collect donors backing nikki haley? money matters because his legal fees have weighed on campaigning. in the general election he needs funds. the question is how many donors can he get. president biden is under hot water coming off the michigan primary and winning other states. in primaries, you start to see protest.

delegates are saying they are uncommitted because of foreign policy and that is where things could get hairy. tom: financing is the area where trump is behind. thank you very much indeed, setting us up nicely for super tuesday and the implications of the supreme court ruling. stay with us for special coverage starting at 9:00 p.m. new york time on bloomberg television. shares fell in new york after a company was fined for shutting out modify and rivals. apple rules ended up harming consumers. >> apples rules result in withholding information on prices from consumers.

they are neither necessary nor proportionate for the provision of the app store. tom: let's get more from oliver crook following the story. how do you get to this number and what's next? >> significant ruling for a number of reasons. first time they've gone after apple. third-biggest fine ever given for anti-competitive behavior and it was higher than anticipated. reporting was 500 million euros and it came out to 1.8 billion euros. it gets interesting because 1.8 billion, there is the core of the fine through regulatory computation and then a lump sum

because of the scale of the company and influence. you need another decimal place to find the core fine of 40 million. the lump sum was one point 8 billion euros to send a message and deter companies from acting illegally. apple say regulators failed to prove harm to consumers, so this will go on. it is an opening shot for big tech regulation. >> significant regulation is coming into effect, how does that fit in? >> no accident, this was done under article 102. the act is going after this behavior. huge companies with dominant positions abusing power.

so they designate gatekeepers, the biggest companies on the planet. it's things they can and cannot do. they cannot favor their own services or combine personal data across services or use third-party data to compete against third parties. when you search flights on google you no longer get options for flight results, you get other ones. that is part of the regulation and the fine can be larger than what apple got. 10% of annual sales or 20%. for apple it would be $76 billion. and if there are repeat offenses, the breaking of companies. this is the message, we mean

business. tom: bloomberg's oliver crook, thank you. later all we will speak to the eu competition chief following that news of apple being fined. stay tuned. evidence that investment is returning to the u.k.. ceos are more optimistic than a year ago. the bullish case for britain next. this is bloomberg. ♪

♪ tom: welcome back. u.k. sales grew at the slowest

pace in 18 months blaming england's weather. sales rose 1% compared with 5% one year ago. the industry called on the chancellor to offer support on wednesday. the uk's reputation hit rock bottom in april when microsoft president brad smith said the european union is more attractive and 10 months later ceos say confidence recovered. official figures suggest the u.k. is the world's top investment destination after the u.s.. caroline talked to the business elite. this sets the stage in terms of where we are and whether there

is a bullish case for britain. >> remember the comments from brad smith. 10 months later my colleague and i have talked to eat ceos and their more optimistic, talking about 2024 as a year where things get better. simon carter is optimistic. there are big opportunities in pensions. businesses have welcomed stability and things like house reforms.

they are looking to this year that the u.k. may be a place with stability. lloyd's ceo john sat down to talk about the u.k. and ecas reasons to be optimistic. >> we've seen challenges around funding, we need to get on track. our well-being is as a global services center. >> that was lloyd's of london ceo john neal. i think the other reasons to be optimistic are inflation is starting to come down. real possibility of

interest-rate cuts and wages have gone up. the chairman was speaking to me and he took part in last year's big reporting. he came back to say people are better off now this year than last year. tom: sentiment changed and dater seems to back that up. the key question is does it continue? the politics is interesting because we have an election. so you think there is risk but you are saying the u.k. stands out for relative stability. caroline: it does because the two candidates are on comparable ground. and a lot of ceos want long-term

decision-making and a two-term government. that was a theme. we have companies joining labors new commission around building britain back. there is the labour party according business, but a consensus among leaders growth is front and center. the u.k. needs to think about these things. there is another big opportunity around ai. wpt ceo said this could be beneficial for the services based economy. the sum of workers parsing productivity go up. >> massive opportunity.

what you can do with ai is access models cheaply because we are a service-based economy. it could make services more efficient and we have to embrace it. tom: the potential productivity gains. great lead and thank you very much indeed. there's plenty more coming up indeed. stay with us, this is bloomberg. ♪

♪ tom: welcome back. china setting growth target of 5% in context relatively

ambitious. notched up growth of 5.2% on base of drop because it was pandemic year. growth coming through, looking to build on that. what does the fiscal stimulus response look like? is 3% realistic? it could be closer to 6% so that's what were looking at. we may get more detail but let's see a market reaction not just the details from the congress, but politics of the u.s. and amd not getting the green light to sell chips to chinese markets. we saw companies taking a hit on the back of that, so watch that.

let's look at bitcoin which continues to grind just shy of 69,000. is this a sign of froth? or is a foundation being built on bitcoin? up next, markets today will be doing a deep dive indeed. stay tuned, this is bloomberg. ♪

♪ >> this is bloomberg markets today. cash trade less than one hour away. china setting growth target of 5%. success will need efforts