this is daybreak asia. asia is major market opens, and we are focusing on japan, but japan really with those price negotiations, it seemed like based on what we got on wednesday, people in tokyo should be happy with salary increases coming through. haidi: yeah, and i suppose the issue is also what are the expectations for the yen. saying it is more about the fed than the boj when it comes to the direction of the yen. let's get to the open. annabelle: a big focus on really any action, do we get it in march or april? that is the focus as we get underway with japan coming online here. the yen holding fairly steady so far in the session, a little bit firmer, but we did get those

wage negotiations, the initial numbers coming out with the likes of toyota, meeting all the salary demands. that is something lauded by the likes of the prime minister. it is something they would like to see and it is playing into the direction of the boj, thinking about if we see any move next week. japanese yen strength has been waited on equities, and we are seeing it, a little under pressure so far, but we also had u.s. stocks retreating overnight. is that a countdown? we have more inflation data and ppi numbers as the last step before we get the fed meeting next week. no change expected but it could play into the language we hear from jay powell and the signaling out of the meeting. for japan, you do see the border index flat right now, but let's look at how korea is coming online, as well, so you can see that the kospi is pretty much

flat, watching the korean today because as we discussed the last hour, the yuan to be tracking today because we do have the country and regulators there once again doing another trial to extend the onshore yuan trading hours, so it is about the internationalization of the market. can it make its aggression into develop market status? the extension is happening around the midpoint of the year. haidi: take a look at what we are watching when it comes to australia. we have a budget update, expecting some pretty good numbers despite these concerns over lower prices, even though they have stabilized a bit. we asked about the speech to be delivered later on in sydney, but watching other thematic's in terms of the process gains we

are seeing. copper is seeing that big move. and we are seeing that as a reason why we are seeing miners and materials showing leadership in the session today. or broadly, sydney being dragged down by financials communication sectors seeing a big drop, and aussie broadband down as much as 25% in the session, despite the upside we have from metals and coppers at the 11 month high. take a look at treasuries and how they are trading. strong demand for the bond auction, drawing lower-than-expected yield. we are also seeing potentially a little bit of a reaction as we heard from u.s. treasury secretary janet yellen, saying it is unlikely that arc it rates return to the levels prevailed before covid-19. of course, setting off that wave of inflation and higher yields. the final data points before the fed makes its decision, meeting ppi and retail sales and focus, as well. of course, it is the fed and

make of japan, and there is some debate over which is going to be more of the impactful decision. boj officials are considering scrapping the by an exchange traded funds provided inflation target comes into size. let's bring our economy and government editor, and as you get the countdown to the boj, potentially, whatever hearing when it comes to etf's? brian: yeah, so we have spoken to people close to the boj, and they have said that the policy board will discuss heading off all new purchases of etf's. this program was launched from 2010 as a means of losing the sector by lowering capital. the boj has now moved to approximately ¥70 trillion, equivalent to one years worth of national tax income, and along the way, the boj has been

criticized at times for distorting prices in the market and undermining the ability of shareholders to conduct oversight incorporate governance by taking a huge share of the market. in recent times, we have seen the boj pull away from the buying last year, and the central bank only enter the market three times to buy etf. we saw the nikkei followed by 2% earlier this week, which in the past would have triggered buying , but the boj held out this week, a signal that it is already pretty much stopped buying stocks, and it make sense because they started the program, the nikkei was at about 10,000, and now we have hit the highest on record, and does not make a lot of sense for the boj to be entering the market in any case, so we are hearing that cutting off all new purchases is going to be under consideration. bond market will continue to get some support in order to keep yields from flaring up too much.

annabelle: it really does show we are on the path to normalization whether it comes in march or april, but we have also looked at the winners and losers that come out of any rate hike, as well. brian: yeah, so before i go into that, let me emphasize that when the bojends the negative right, it will not be there. we expect to see from the fed later this year. in terms of policy, the rate will go to 0.1% which is, of course, still very low and loose, but having said that, it is a change, and we would expect to see winners and losers three banks should benefit because they can start to boost their lending margins for the first time in a long time, especially regional banks. companies that import goods, including food and beverage, will probably get a lift. if the yen does rise from the boj hiking, and then later the

fed cutting rates, that would also benefit companies that are reliant on energy, large amounts of energy, such as steelmakers. on the other hand, companies that are heavily indebted are going to take a hit, and according to the databank, some 250,000 companies in japan qualify as a zombie companies, about 17% of the total. a lot of those companies would probably go under and they lose access to essentially free money, and i could make a subtle segue now into public finance, japan's public debt is the largest in the world as a proportion of the size of the economy and those net financing costs will go up. that could put a drag on his go policy going forward as the government tries to get its house in order. haidi: that was our asia reporter brian fowler in tokyo. let's get more on the outlook for the boj. annabelle: let's bring in the

global cio of oreana financial services, isaac poole. we are not expecting a huge step forward in rates, but do you think the door is closing somewhat on them being able to make an exit, as well? isaac: i do, and the bank of japan has a history of under delivering, and that is really the challenge here, they have left things so late, and you see that inflation is moving lower. this won't be a big pivot. we might get one rate hike, possibly two, but i don't think this will be a meaningful move higher. the real risk is if the global or if japan's economy slows further, they could be cutting by the end of the year, and that would be a real challenge for them. annabelle: we discussed the winners and losers in that environment. as the equity market then wi n? isaac: with an initial rate

hike, that could be a positive signal, moving away from this natural pressure that has been there for a decade or more. that is a positive development to start off with, but we know the economy is slowing already there. wages are being pushed higher. that is going to be a challenge to digest that. and, so, if i look out at the end of the year, there could be real headwinds to the equity market in japan. haidi: that goes to our question of the day, which pertains to what happens to the dollar and what is more impactful, the bank of japan decision or the fed decision? but what is more impactful for risk assets more broadly? i feel like the rba hardly will get a look in on the same day next week. [laughter] isaac: yeah, i mean, it really is all about the global investment community, and it is only worried about what the fed

will do, how soon they will cut, and what that will allow the economy to do over the second half of the year, and we are seeing that the u.s. economy is slowing. the unemployment rate has moved higher, and retail sales are weaker in general. unfortunately, this is happening as inflation has been sticky, and a real risk that the fed disappoints the market, even though it is being dragged to three rate cuts, and that is all that is going to matter for the currency and equity markets, like the rest of this year, i think, because, ultimately, fundamentals are week, earnings growth is low, so if rates are cut because the economy is slowing, that could be a catalyst for u.s. equity valuations and a real risk to extended valuations now. annabelle: there's that mean there could be a contrarian opportunity for china? haidi: whether it be actual, you know, start of incremental

policy or the fact valuations have been sitting so low and investors are a bit over the narrative, things seem to be improving. isaac: they are. i think that it is really clear that china's economy is growing, although i don't think we will see a real acceleration. the real opportunity is, one, the relative valuations. they are very low and probably have bottomed out now. the other part is that china's authorities have been quite canny about releasing monetary and fiscal policy over the last 12 months. so we could see a global and u.s. slow down, and then you will see china will have plenty of ability to add to the stimulus, and that means if we get that slow down, you have the benefit of valuations and what could be a real surge and policy support for chinese equities. annabelle: when it comes to policy support, if you look at the performance of chinese equities, the ones that are tied

to the new economy are the ones that have been better, renewables and materials are the smaller growth stocks, as well on that ain tech bit, but is that sector that you really would like to be going into? isaac: globally, that is a sector that is stretched. but, it is the new economy. that is the focus of chinese authorities over not just the last year or so, but many years, move away from the old industrial led, investment led growth to something that represents domestic consumption and domestic research and development, and those other the areas you probably want to focus in on, but you do need to be aware of the risks of getting stretched. haidi: that was isaac poole, the global cio at oriana financial services. let's look at the movers, 12 minutes into trade, this is what

we are seeing in terms of nippon, moving higher, and u.s. steel fell overnight because there is the concern around the proposal that nippon still has to purchase, and that is according to sources familiar with the matter telling us that president joe biden could soon release a statement of concern about that deal, so, as i said, u.s. steel under pressure and we are not seeing that translate across to nippon steel. keeping an eye on the automakers because we do understand that nissan is weighing ev partnerships with honda, both moving a little bit high so far. let's change on because i mentioned nippon, but there is still the focus on the copper linked to as well. we did have reports that chinese coppers smelters could be weighing capacity cuts and that drove the price of copper higher to a seven month high.

we are seeing copper names moving higher today at the start of trade in japan and korea. we have also seen them getting in australia so far. that is really the action so far in the market session, but proudly today, we are just seeing equities treading water so far, following what we had in the u.s. session, the countdown to the last inflation print expectations, again, around what the fed as next week and with the boj does, as well. haidi: of course, watching the tech space, as well, into the start of trading in china, we will be watching any kind of follow-through from this build to force a sale of tiktok, and setting up a fresh flashpoint between washington and beijing, this is bloomberg. ♪

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constant contact. helping the small stand tall. haidi: the u.s. house of representatives passed a bill to ban tiktok and the u.s. unless it's chinese owner sells the video sharing app. buddy carter told supporters of the bill see it solely as an issue of national security. >> we are not talking about banning tiktok. this is up to tiktok and bytedance. they make the decision on whether they would like it to go away or whether they would like to divest themselves. the ownership of this. this is two questions. first, this is a question about is this going to be banned? no, they have to divest themselves and that is a question they can only answer. the second question is in the house and senate, and that is

this is about national security, and are we going to take national security seriously? the number one responsibility of the federal government is to protect our homeland and citizens. we have to take it seriously, and it is about national security. >> congressman, thank you for your time this morning. project texas was the plan whereby the u.s. user data of the tiktok app would be housed in data centers onshore in the u.s., owned and operated by oracle. were you not convinced of that plan such that you cosponsor the bill? why did that not work? buddy: it does not matter where they are based, if it is owned by the chinese communist party, that is a problem, and that is the responsibility of congress. it is their responsibility to guard against these kind of national security issues. that is why we acted on this,

and i would beg to differ with some of my colleagues who are saying this was to rest. -- too rushed. we have talked about this a long time, and tiktok has been banned on government phones for some time now, so this is not anything new. again, this is not a ban. we are just saying that bytedance, the parent company of tiktok, that is owned by the chinese communist party, they must divest themselves of this. haidi: that was the georgia republican congressman buddy carter speaking to us on bloomberg technology. let's bring in our executive editor for asian technology from tokyo. it is not clear if this bill will become law, but we do know that tiktok is not going to go down easily on this one either. >> that is right. this bill has picked up quite a bit of momentum and it surprised quite a few people, as mentioned briefly. this has been talked about for

years, even after the trump administration discussed it in various forms and reasons, but now it has gotten past the house, and it is headed towards the senate. the fate is uncertain, senators have expressed some concerns about this. but it is very much possible, and biden has already said [indiscernible] and as we have reported, they are planning a legal strategy to fight back against this. they feel like they have legal grounds to stop this and slow it down, partly over speech grounds, partly because they have not, if you like, they have not met the burden of proof with cost influence that tiktok is using, so we can anticipate there will be a legal fight. none of the questions is whether they will have to proceed some separation in the short-term,

even if they do continue to fight it. haidi: can we talk about the longer possible scenarios? who are they potentially sell to? could they not sell and just survive or thrive without the u.s. market? >> these are all very good questions, so the strategic options for bytedance, the parent company of tiktok, would probably be almost threefold. it could just close down the u.s. operations, and they could, and they have over 700 million users. tiktok is popular globally, but u.s. is the most lucrative market, bringing in the most revenue, so that is a challenge for them. it could also separate the u.s. market and separate the u.s. market and let that stand alone. that is difficult from an operations standpoint and cost standpoint because you have to operated separately from the rest of tiktok, separate management, and as we talked

about, separate data and privacy issues, or they could look to spin off tiktok itself globally, not just the u.s., but globally. from a business standpoint, that would free the company from the overreach of bytedance in particular, and create political concerns. we have a powerful tech company that could compete with the metas and facebooks of the world and google. they have tremendous reach and a strong global presence. the problem is that i dance would perhaps lose one of the most important operations, and the chinese government has said if bytedance would like to proceed with anything like that, it needs to gain approval from beijing first read they are concerned about ip from china going into other markets three they have to deal with not just the u.s. government but the chinese government.

haidi: that was our executive editor for asian technology, talking through possible scenarios as tiktok that's ready for this fight. you can get a roundup of stories you need to know in today's edition of daybreak. bloomberg subscribers can find that other terminals. it is also available in the bloomberg anywhere app. you can customize the settings so you get news on the industries and assets you care about. this is bloomberg. ♪

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thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh haidi: as australia grapples with rising housing costs, in sydney, some residents are protesting a plan to build answer apartments around the city. paul allen reports. call: the name of --

>> the name of the protest is called save sydney, and it may be doing the opposite. these protesters would like to stop laws that would allow more high-risees in the suburbs. the housing shortage is one of the reasons that sydney property is among the most expensive. planners have asked the state government to increase supply and do it by building up instead of out. greater sydney has relatively low population density with 400 turning on people purse work limiter -- people per square kilometer. still, plenty of room to move there, compared to greater london with more than 5.5 thousand per kilometer and more than 7000 people crammed into a square kilometer, hong kong makes it look like a peaceful village, and the villages like it that way. to those who have closely studied sydney's refusal to grow up instead of out, it is

disappointing but not surprising for protesters. >> we have seen many of those apartments threatened. >> this does cause sydney to lose some of our inner areas, like eastern suburbs, and in those areas, we have a fluent populations, with highly developed social media skills, well-organized, and they can influence politicians. >> change is already happening. the new government is spending billions on one of the biggest infrastructure projects the city has ever seen. the stations along the existing core doors have been looking at locations behind entity housing. >> they have to change and grow over time as the population grows, and sydney's population is growing significantly. >> and while the issue of where to house people continues, house

rents and costs continue to rise. haidi: we are looking out futures and europe are coming online, trading pretty much sideways at this point, very early moments here, but it does sort of reflect the tone across markets, and we are seeing in asia, it is a bit of a countdown to the u.s. ppi numbers, and the boj's role is playing into it, but that is the look at european stocks and the euro is very steady. you will have more ahead on daybreak asia. this is bloomberg. ♪ her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we got him under a new plan. but then they unexpectedly unraveled their "price lock" guarantee. which has made him, a bit... unruly. you called yourself the "un-carrier". you sing about "price lock" on those commercials. "the price lock, the price lock..." so, if you could change the price, change the name!

it's not a lock, i know a lock. so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. okay, that's uncalled for.

haidi: take a look at theyuan,

weakness for a third consecutive session. we did see that selloff at the start of the week, being sparked by bigger than forecasted inflation numbers, boosting the dollar. the dollar has been pretty range bound the past session or so, but, certainly, we have seen this side of the fed and u.s. data upsetting the impact of what had been better than expected labor market numbers out of korea. when it comes to theyuan, we have structural changes ahead when it comes to trading. south korea is doing another test of after hours trading of its currency as authorities prepared to extend the trading session. let's bring in are reporter who has the latest. whatever looking at? >> south korea has been bolstering efforts to improve access to improve foreign investor access to local markets here. notably, the fx market, which

only trades for 6.5 hours. plus, i'm sure investors -- offshore investors have been banned from participating in the local fx intraday market, as well, which means these investors have had to rely on nondeliverable forwards to manage their exposure to the yuan outside seoul trading hours, which is strange for a country that has some of the biggest -- the fourth largest economy in asia, so the government has been trying to change that. so far, they have let some investors trade unsure, and in the intraday market, and most importantly, they will be extending trading hours by about 10 hours starting this july, so, today, which is after markets

close, the government will be conducting its third test, during which they will let some of the participants trade freely real-time, and it will be the first time they do so, and they will see to have an idea of what kind of consequences they could see when hours are extended in july. annabelle: what are the implications of that then? hooyeon: obviously, the move is to improve access, improve global investor access to the yuan which could drive more inflows in the future and pave the way for korean bonds and equities to be added to global indexes, index providers like the ftse russell and msci, which the government has said could bring in tens of billions of dollars into the market. still, there are a lot of

hurdles left. the government, the offshore trading of the yuan will continue to be banned, and foreign investors will have to trade through authorized brokers in korea, which will make it easier for the government to monitor these transactions, and it will take some time -- they could take some time for traders in the mdf market to shift to set up new process to trade the onshore yuan, so implication may be small at first. generally speaking, markets have been telling me that it would be a positive move. haidi: let's take a quick look at how markets are faring. we are 30 minutes into trade for korea and japan this morning. the outlook, we are getting a little bit under pressure so far. we did see u.s. stocks slipping overnight. we saw a big with more

lifeguards, session, and if you look at the imap function, tech is in the retreat so far in asia. that is the state of play there. let's switch because the commodity story is playing into the moves, particularly in australia. we are keeping and i'll what is happening in oil markets, given we did see -- we are keeping an eye on what is happening in oil markets, and there was that refinery attack, and we are seeing a retreat in u.s. stockpiles. we did see it hitting a seven month high on copper yesterday in the session. today it is a little bit firmer, but there is the question on whether chinese notaries are going to be pushing through capacity cuts. that is what really drove up the price of that the commodity. tech is in focus so far in asia today, given the weakness in the sub index. but apple's iphone maker is reporting fourth-quarter earnings today, and the company is on track to report its second

straight time of strong profit growth as demand for ai hardware helps offset weakness in iphone sales. let's bring in her asia tech reporter for more -- in our asia tech reporter for more. it does seem that it could be a little more positive. jane: yeah, we will have to see whether the fourth quarter earnings come in, as analysts suggest a second consecutive rise in net profits. that is probably the last quarter that gets to be compared to a time when things were more difficult and china with the covid shutdowns. but investors will also focus on any color on outlook for what is happening in the current quarter, especially because counterpoint to recently said that apple, that iphone sales in

the first six weeks of the year were down well over 20%. so that is raising a lot of concern that, you know, hon hai, which gets over half of its revenue from apple sales, apple product sales, could face a difficult quarter. the current quarter could be a difficult one, so investors are really looking for some hints on that. annabelle: does that potentially get offset by demand for ai hardware? jane: it is hard to say because ai hardware is now ramping up, and iphone sales, you know, make up such a big part. it is possible that we will not be able to see the benefits of that ramp up yet of ai server sales, but perhaps going forward, that will at least help alleviate some of the difficulties on consumer electronics sides.

but those will be things investors will be looking out for, and news coming forward of any new contracts for ai servers with any of the tech companies that will really continue to help boost shares. already this week the past week, high shares jumped by 15%, so there is quite a bit of optimism in the market for ai services. annabelle: our asia technology reporter in taipei. haidi: the latest developments in chinese property firms. we will get you up to date with the slumping, signaling that a default might come. it fell to as low as 40 cents on the dollar this month, showing that there is the possibility of altering despite leaks to the government. there is less concern shown of an imminent implosion.

country guardian has missed their yuan payment for the first time as it is seeking liquidation offshore. the builder said it did not fully prepare a coupon that came on tuesday for a bond maturing in 2026. it has a 30-day trading grace period. country guardian will try to raise some money through asset disposals, spending, and sales. more to come on "daybreak: asia ." this is bloomberg. ♪

haidi: you are watching "daybreak: asia." annabelle: looking at political stories we are tracking, the u.s. secretary of state antony blinken is calling on israel to dramatically boost the amount of food aid getting into gaza. he says supplies that are allowed in since the start of the war are still not enough. he is urging israel to open more regular and predictable access points for overland delivery to avoid looting of food aid convoys. >> the bottom line is we need to see flooding the zone when it comes to the humanitarian crisis for gaza. annabelle: russia says ukrainian

drone attacks have halted operations at three oil refineries. vladimir putin says the strikes are meant to disrupt residential elections later this week. an aerial attack caused a fire at one of the country's biggest crude processing operations. ukrainians are ramping up the strikes to hampton russia exports. china's foreign minister said to travel to australia next week and the latest sign of growing ties between the nations. the highest level visit from beijing and almost seven years will come as china weighs the possible removal of tariffs on australian wine. he will arrive on march 20 for talks with his counterpart. haidi: of course, head of that, we have been watching the move higher earlier in the week when it comes to the australian yuan. a couple of the ones we are watching, treasury extending gains we saw yesterday. we saw a big bump for that part

of the market, given the expectations that a proposal has been floated by beijing to end tariffs of almost 220% that have been in place for almost three years. that's bring in our next guest, which runs taylors wines, mitchell taylor. time flies. the last time we spoke to you was when the punitive tariffs to affect almost three years ago. no doubt, you are relieved. we see parts of the market relieved, as well, as the potential of improvement exists. how has that impacted you the past few years? mitchell: it has been a rough time for australian winemakers. we have found that over this time, not only were we dealing with inflationary pressures of the entire supply chain, and now agricultural risks, so it has been a difficult time for business.

we have managed to look within the asian region, but we have really been fighting for this decision because we earmarked a lot of investment, a lot of our top and wines -- top end wines, and like our legacy that we designed for the chinese market. it would be great to have our premium wines back on the market, but it will take quite some time to readjust and to get used to the change that has occurred from three years ago, when australian wines represented 40% of all the export side of the country going towards the china market. haidi: this is also an issue of what happened with the pandemic and a slowing chinese economy and consumer that is tightening their wallet and spending. are you worried that consumer

tastes and preferences in the market share has been permanently changed over that time? mitchell: yes, we are. we actually believe that the french winemakers and chilean winemakers took our market share , and also built for branding of the marketing and the trading relationships that are so important, and they are very complex, and they are always changing in china, but the good thing has been that people still remain very upper hand, and they still loved australian wine, the richness and structure. we have continued to invest with people in the region to keep the brand allies, and we have entered wine competitions in china. it has been great to see the anticipation and the respect that our brand still has after being out of the market for

three years. while we are busy with this time, i was actually in hong kong last week preparing meetings and preparing for this hopefully good news to come out later in the month. annabelle: we have heard from treasuries, talking about preparations to reallocate a proportion of the stock as soon as the announcement is made. how quickly are you able to pivot to be able to get distribution and supply chain back into china? mitchell: it takes some time. you have got to make sure relationships are in place, so there is documentation and a lot of work, and, hopefully, we have prepared these lines. we have anticipated that there will be this opportunity, so, hopefully, we will be rather out fairly efficiently over the next

two to three months. having said that, we realize we have got to do a lot of hard work, a lot of visits, a lot of labor will be required to really rebuild and reintroduce our new vintages to the market. annabelle: there have only got so much bandwidth and capacity. if you focus heavily on china, which markets are you expecting you will not be sending as much wine to then? or will you have so much supply now that you can meet the demands in various markets? mitchell: we have got good supply. strategically, we have been concentrating on the rest of asia. we just launched our wines last week, and also southeast asia have really been good little pockets. they have all been working well. we also just built a new relationships and south korea,

so it is the whole region we are looking at, and, also, having a very strong domestic brand really gives us that pedigree of being a family winemaking business for over 55 years, so that has really helped. not only at home, but in some other international markets around the globe. annabelle: in the u.k., which was a prime market for cheaper wines, has now become your top destination for premium wines. what demand you expect from them? mitchell: yes, well, that is another journey that we -- as a member of australia's first family family of wine, we are starting to market battop premium wine in that market because i think a market like the u.k., they have very good pallets, they appreciate the

quality, and they still discover the scale and scope of the very buy-in of australian wines in the market. it will be a lot of investment, relaunching our brand, getting the excitement back in the category, and, also, that education with all the new innovation that has been happening within the australian wine industry. wines have continually been improving. it is exciting to see the quality coming through, and some of the big international awards that we have won around the globe. last week, there was a fair in germany, and we actually won the major award over there for our wine, and we also won several

gold medals across the entire portfolio. so these are just positive signs of the quality and improvement and innovations coming out of the australian wine world, and we are looking forward to sharing it with our customers, with hopeful good news about to be announced that the tariffs will be off australian wine in the chinese market. annabelle: as you said, that big focus on the chinese minister visiting australia next week. that was richard taylor -- mitchell taylor, director at taylors wines. you can see our interactive tv function at tv , and you can dive into bloomberg functions that we talk about and become part of the conversation by sending instant messages during our shows. this is for bloomberg subscribers only. check it out at tv . ♪

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annabelle: aia expects continued growth in the aussie and region, mainland china and hong kong. the group cheaply -- chief executive spoke to us after they reported a 30% increase in new business value last year.

lee: we are having excellent results. we are very happy. as we said, we delivered a very strong growth, at 3%, constant exchange rate, and this is broad-based, and we delivered in markets across the region. our four major group engines, which is the largest group engine, hong kong, china, and india, all delivered very strong with our profile. annabelle: for hong kong, what is the outlook of the removal of the capital investment entrance scheme? do you see that is having an impact? lee: we grew our 82% in hong kong in toy 23, and it is driven

by strong growth in business and the domestic settlement, as well. the reservice, the middle class customers in hong kong have had demand for insurance products, and we are seeing the momentum of business is continuing very strongly in the first two months of the year. annabelle: could you quantify that a little bit more? we have been crunching the numbers within the bloomberg intelligence team, and they say for every 10% increase in hong kong's new value over the course of the year, that could equate to an average boost of 3.6% for your business. is that something you are expecting, as well?

lee: well, we see that, you know, we see continuing momentum in our business growth across -- into the fourth quarter and carrying on into the first two months of this year. we are very, you know, confident of the prospects of our hong kong business and mainland china businesses, and also india through 2024. haidi: that was the aia group chief executive speaking exclusively to us earlier. taking a look at corporate headlines, volkswagen slipped after warnings of a difficult year ahead, expecting to fall further behind in china. volkswagen is willing to give up

the sales share in the key market this year and next to improve the long-term business outlook. it also gave guidance for declining operating profit and china. >> we are deliberately prepared to give up market share in the next one to two years, 2024-2285, to find a compromise between margins -- 2025 to find a compromise between margins. haidi: read it is set to be telling potential ipo investors that it expects revenue in 2024 to grow by more than 20%. a source says they have given similar guidance to last year when sales jumped $800 million. that is it for "daybreak: asia." our markets coverages next. ♪

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