quarter in inflation reading. china reinforcingy yuan by releasing the first says january. and boeing, a leadership shakeup, whether this can restore confidence. a great leg up -- light of ahead with the market outlook, leader from the milken institute global investors symposium, we will be joined by siddhartha hari, markets for 2024 pinwheel do a check in for markets. avril honks standing by. not much conviction. avril know much conviction, but it has to be said it is brushing aside in a way, right? u.s. futures, treasuries, asia

stock engage all ticking higher, and there seems to be some certainty returning to the market some of the pboc today ramping up support for the chinese currency versus the markets on friday, highlighting onshore, we see the weakness, and not terribly convinced on the japanese currency. we have seen ed moving in relatively tight ranges to the greenback come all of this intervention chatter, helping to flow under the japanese yen. there are some bright spots i think today, and the cost rising to two-year highs, the chip sector, not that much conviction but we do still see some of those rises. haslinda: the massive rally in the u.s., too much, too fast, and perhaps it is time to reposition. avril: maybe for the bank of japan. if you look at how the topic is

performing, versus the s&p 500, it has run up about 17% so far this year versus the s&p 500's 10%. this has to do with the idea that we are seeing signs of deflation coming to an end, economic revival, the yen is cheap. if you take a step back, there are some who think the boj could raise rates later this year. i can put pressure on the export-related stocks, but most analysts would still agree we can see the outperformance of japanese equities, because as wages rise, you can see purchasing power improving, and i could be good for domestic relief stocks, and that could form a little bit of a rotation. don't forget for u.s. equities, a lot of it has to do with whether we see profit acceleration, you know, to kind of justify these lofty valuations, and that will be very dependent on what we get for rate cuts. haslinda: avril hong, thank you.

which markets will outperform from here? let's bring in stefanie holtze-jen, who has japan is one of her top conviction calls. making a rod ad 2025, why? stefanie: well, i don't think i'm adding anything new in terms of explaining the elements of benefiting the markets, but i think what we have understood, is that all of the elements also stay in place, and i think the bank of japan has been over this rate hike out of negative interest rate territory very cleverly, because they have at the same time informed they will stay very accommodative. and we have not seen the yen, we see a continuous path of weakening, and this has been a further tailwind for equities to

go higher. in the short-term, it is difficult to see the ability of japanese equities to outperform even u.s. equities. haslinda: how do you position in japan? what do you buy? stefanie: not to say no, but actually we have three very specific sector calls, one around consumer discretionary. it was mentioned before with the rate hikes, a lot of, you know, reoffending power into consumers' pockets. we are looking at the semiconductor space, i.t. come on that end. yeah. we like some very important ones to go after financials, because the banks will now be in a different territory, with rates being moved out of negative interest rates. haslinda: we are keeping a very close eye on the yen, saying, you know what, a weak yen right now is not good for the economy. where do you see the yen headed, and when do you see it out 152?

stefanie: yeah. obviously we get the heaviest verbal intervention that we've got for a while now come approaching the 152 level. but i've been arguing all this time that a weak yen is a double-edged sword, yes, you know, we've been informed that we do not want to have circulation of the market. they do not want to see the yen weakened too much, but at the other hand, it is fueling that equity market drive. i think it will be difficult for the bank of japan, the ministry of finance, to go in with a real kind of power and intervene at these levels. i think we see a gradual depreciation happening. it is very difficult to see with this interest rate differential between the u.s. and japan to really change the dynamic around it. haslinda: the thing is, u.s. exceptionalism is not likely to change, right? perhaps only one rate cut this

year. so what will happen on the yen, then? is it on a downward trajectory toward your head? stefanie: well, i don't think it is a one-way street. we have already seen the officials are trying to dampen this very gradual trajectory. you are talking about the u.s. dollar benefiting on behalf of the fed, the markets idea of the rate cuts. you see we have started the year with seven rate cuts being priced income and now they moved to three rate cuts -- that is what the fed told us, by the way, this year we've moved to two cuts only. i don't think the u.s. dollar is only informed because of that. i don't think we've seen huge, you know, beneficials really on the back of the rate cut expectations being repriced. i think there are more elements

to it. it puts a lid on the depreciation path. many have that, not us, though. haslinda: you are pricing rate cuts to the year to two. why would it cut it one headline with bostick? stefanie: last year, for instance, we were the only bank not calling for any rate cuts. we start of year for everybody pricing in seven, we had three. two weeks ago, we decided now they would be forecasting a year ahead, until march 2025, we stick with 3, 1 until the first quarter of next year, reason being that the fed is operating from such a strong backstop, they can afford to go every other into not want to be seen to close. so i don't think there needs to be much more to change that. it is very realistic because the fed is pulling the pivot. they need to start very soon and

leaving the gap between june and the first quarter i think is too long. haslinda: valuations remain elevated, especially in the u.s. it will take rate cuts to jump this valuation. stefanie: well, we see no rate cuts but a rate hike cycle, to be lofty in the market going up. so, of course, more rate cuts could help, but the repricing "bloomberg daybreak: asia" -- but the repricing, again, i don't think has done it. i don't think that is the only information, but of course it has to be one. haslinda: my colleagues are asking when the s&p will get to 6000. [laughter] stefanie: our target for one year's time is 5300, so 6000 is really lofty. every other year, they should be a market, a 10% correction. i could argue may 6000 and

correctly 5000, but we don't want to push anything around some lofty numbers being put in place. it does not look like we need to go to that extent, but, you know, it is still upward trajectory with the ability to correct and go in have better levels, that is something we will achieve further year ahead. haslinda: talk about the bond market and the yield curve, we have seen the 2-10 inverted for the longest period ever. how are you reading back, and how are you position in the bond market? stefanie: yeah. we also see the bond market come to a more normal level anytime soon. on lifeways waiting for that inversion to be -- i am likewise waiting for that inversion to be flattened out. right now, we are assessing, when will this first rate cut start? once that starts, that is the time when we get to move into a

normalized rate environment, because, then again, we have a look ahead to more rate cuts in the future. haslinda: is it time to look for a neutral rate, or is that still a difficult question to answer? stefanie: a very difficult question to answer. haslinda: we will leave it there. of course, stefanie holtze-jen, deutsche bank private bank, is sticking around. still ahead, we discuss whether the private market will make a comeback or whether india will be in the spotlight. hillhouse partner siddhartha hari will be joining us. stick with us. this is bloomberg. ♪

haslinda: let's take a look at how stocks are faring at this point in time. we have the shanghai -- seng

hang reversing some of those that we saw earlier in the morning as well. that is the governor saying he sees positive signals and chinese property markets, a solid foundation for long-term markets. the index now flat on the day. the yuan trading at 7.2175. on the back of the elevated, stronger than anticipated fixed. chinese stocks as of late bouncing back to reset lows. the latest activity data for the first two months of the year showing the first tentative signs of recovery. let's bring back stefanie holtze-jen, apac cio and deutsche bank private bank. you had an overweight not too long ago. now you are pretty cautious.

stefanie: we can also be technical. we have to, to be -- we can also be tactical. we have to, to make money for our clients. we saw about a month ago, a little bed more than that, we reached a time that was almost at inflection point in terms of negativity. they government probably had a lot of measures that seems to kind of help prop up the market. getting more cautious now because of good friday. it happened on friday. we saw the currency be allowed to weaken with the lower fixing. i thought it was a little further sentiment, really, because my reaction was when i saw that, this is confidence on the side of the pboc to be able to weaken the currency, some orma monterey -- some form of monetary stimulus, the same time the fed, you know, is not moving right now, but if the pboc is moving, lowering rates

ahead of the fed, that could have impacts on the currency weakening and possibly have a vicious cycle. the, you know, currency was something i thought was quite credible, but the markets would not take it at all like that. immediately it was for the equity markets to selloff. i think they did not like the volatility that i thought was actually positive head allowed by the pboc, so they did not like this instability, and it was immediately negatively interpreted, and we had to fix that on friday. i believe this is a sign the sentiment is still not stabilized. on a technical basis, building a base and, you know, ending up in the green for the year. haslinda: best signaling, the messaging from china has been pretty positive. we have, you know, the pboc saying rrr cuts are coming. we also see the government saying it is coming. why is that not enough?

stefanie: yeah. and also i think, i was especially happy last week because i thought the macroeconomic data was actually coming in not too bad. sentiment feels the macroeconomic data. to me, when sentiment looked like it was stabilized, flo was coming our way that was missing with some economic data. it was not too ambitious. it was quite important because it had been normalizing data centered i was looking ahead to this week, looking ahead to this week's data come also pmi, etc., but, again, when we saw what had happened in the currency, despite all the messaging, despite the data, it is now the time yet. i think it is important to listen to the market. if there's not enough confidence, not enough sentiment that it is staying positive, it is better to sit on the sidelines. haslinda: if you listen to the markets, they are saying perhaps

it is time to get out of india and put your money to china. is that when you are thinking as well? stefanie: i monitor japan, and yet china very closely, because there's been a lot of notion that the outflows from china went into india and japan did at the same time china does not perform, we saw these two markets outperform. we need to be careful in understanding it is the flow now , out of china, taken from india or from japan, what are the markets, because both are going into overvalued territory? from what i saw from the floor data is that the asian flow show this money coming out of india, not so much from japan. and i think the reason is that japan is very much also driven by domestic sales, so whatever happens in geopolitics does not so much affect it, but right now i monitor india for that kind of flow dynamic. yeah. haslinda: are you concerned

about regulatory warnings from the regulators? the clampdown we are seeing, for instance, is that a sign for you to perhaps being cautious in the indian market? stefanie: the indian market, we have to be cautious for sure, but we are comfortable with the large caps. haslinda: it is there risk, perhaps, from the election coming up? stefanie: that is a very good one. we look at the last five elections, and how the markets reacted back then. six months after the election, the market on average move the 21%. if you look at the six month before, the markets moved about 12% on average. and only on election day, there were actually two occasions where we had a selloff happening, it only moved to percent on average. so it looks like a lot gets priced in before. then you have the uncertainty, ok, you get the news affects, that afterwards, we go back to being able to perform. i think the outcome we expect is

more stability and more of the same policies to benefit india. so in that respect, i fully believe you can draw into the future from history. haslinda: people are talking about gold hitting new record highs. what are you reading into that, and will you be pumping more money into gold? stefanie: gold is a big call for us. already says november of last year, we had a gold target out of 2250 for the year ahead. we just realized after 2400. we know a lot of people were smiling about initially, but i think the drivers for gold are very strong. you have all the ones that we know about, you know, this part of the world is heavily investing in gold. you have geopolitics at plated we may have interest rate cuts coming our way, really a headwind for gold hit on the other hand, inflation is higher. gold is also benefiting. on top of that, i think the big

driver this year is also the chinese investor moving into gold. , i think, and when you have a weakening currency, still the property market waning, the value is not just for the central bank but also for the, you know, for investors. haslinda: not to mention demand in india as well. thank you, stefanie holtze-jen, deutsche bank private bank. still to come, boeing announced a leadership shakeup over its spiraling safety crisis. details just ahead. this is bloomberg. ♪

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dave calhoun, announce departures. the exits come after that incident in january involving a 737 max. in 2019, 2 max jet crashes killed 346 people. let's speak to bloomberg columnist 10 carlton. the question is whether this marks the end of problems, and my guess is it doesn't. tim: really it is the start of the next set of problems. this move needed to be made, as you can see by the shares climbing. a little bit of a worry for many people, it is something people will be watching very closely. i personally would not be surprised if he does in the exiting before the end of the year. of course, boeing has a board with a new chair who previously

ran qualcomm. they have to find the right person. the last person to fix the problems is the person who is just a parting. there are a lot of problems for boeing to fix them about replacing management is the first step to fixing those problems. haslinda: you are right, succession is a problem. few people are qualified. how does boeing fix this problem, perhaps once and for all? tim: the board is also changing with a new chairman coming into it i think she will be a good step, you know, boeing's board, you can see in the last couple of weeks, has not been passive, you know, and customers went to the board directly and asked them to replace the leadership. the board is the one that really made this move. i think it will be the board's job to set up the right kind of environment, the right kind of culture, so whenever the new ceo does come in, hopefully sooner

rather than later, what is required will be laid out. as the board brings in a new ceo, they will be trying to find out if the ceo matches the kind of culture they need to create and build from scratch at boeing. haslinda: tim, setback after setback for boeing. you've got to wonder how it will now compete with airbus. what will that take? tim: well, you know, airbus is being very careful about this. there is a gulf between airbus and boeing, but you don't hear airbus crowing about it, because aviation safety is something everyone takes safely. so airbus is doing all the right things, basically staying very quiet, putting their heads down, getting to work, building and selling planes. and, of course, the chinese over the next few years will try to use the problems of boeing to try to create the idea

especially amongst smaller airlines that perhaps the chinese are available -- are a viable alternative. haslinda: great to see you again, bloomberg hstech opinion columnist tim culpan there. korea, the market cap nearing $100 billion, what i rise for sk hynix, samson up as well currently up by 2% come on the back of the rally we saw overnight, day seven, the climb we are seeing. what we are seeing, some of the displays as well as developers. resources up to .5 percent. when it comes to properties, china's property markets, a

solid foundation for a long-term development. in terms of the overall market, asia, games, despite the fact that we saw the s&p close in the negative. plenty more ahead. keep it here with us. this is bloomberg. ♪ her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they 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.

haslinda: back from lunch break in japan, a check on how everything is doing. avril hong standing by. avril: let's take a look at how japan is faring on an dk, we see how it's been trailing the asian equity space for much of the session. i think there is the idea that

as we see the dynamics from the yen come through, that's putting a cap on what we see in japanese equities. also has to be said that one of the key drags on the nikkei today, automaker, nissan, as it unveils its plan that wants to sell an additional one million vehicles in the next three years, it once to come up with 30 more new models, this has been described by analysts as an aggressive plan. they don't seem to like the strategy that nissan is pushing through, and its stock is actually tanking or slipping by the most in about three weeks. that is a key drag we see in japan today flipped the board. let's take a look across assets. that's also where you see how japan is trailing cautious on bonds. topix is also cautious today. haslinda: i want to talk about commodities. here's one thing we don't talk about, coco more expensive than copper.

what's the story there? >> we don't talk about a on air but you and i talk about it fairly often off air. the story there is supply. i think you are single-handedly lifting demand for cocoa, we are seeing how, on the supply front, things have been tired because of what's happening in west africa, whether you talk about lack of fertilizers, disease, those are issues that are constraining supply,'s particularly in ivory coast and ghana. we saw this trigger coming in the form of word on the street that ghana was going to lose access to a key funding facility. basically ghana pays its farmers through foreign financing and the funding seems to be curtailed, potentially because these loans are back. it's a bit of a chicken and egg situation or coco and being situation, if you want to put it that way. that's why we see the way coco has surged past 9000 dollars,

jumping $700 in a single day. haslinda: when you take a look in terms of supply shortages, the worst in 40 years, you have to wonder what it means for the price direction. for me, you have to wonder what happens to my chocolate? avril: as we head into easter, that's part of the conversation, how chocolate is getting more expensive. there is the demand, there's to supply dynamic wrapped up in all of this, but as we talked about the supply dynamics, these are issues that don't seem to be going away soon. we seem to be headed into a third-year of shortages. i think your chocolate is going to stay quite expensive. haslinda: you're not getting it -- you are not getting any chocolate this year, my friend. let's get back to the milken institute symposium where david ingles is standing by with our next guest. david: absolutely, the first ever, at least in hong kong,

global investments at the milken institute has been having in-depth conversations. i wouldn't say unexpected, but has become front and center. private markets within that private credit. some of the guys that we had a couple of conferences back that stopped by to say hi, who better to talk about the conversation. joining us is the credit partners cohead joining us, good morning, nice to see you. i first want to give our viewers a taste of what you guys do. you guys are particular part of it, this relative unit. how long have you guys existed? >> it started as a dedicated strategy about nine or 10 months ago. the reason for that was twofold. it was a desire for the firm to serve its own across the capital structure. we historically on private

equity, growth equity. we started real estate three years ago. the idea that it was solutions to our entrepreneurs on the safer end of the capital structure, which means inspiration. so hopefully it's an inspired decision. secondly, we felt that there was a clear whitespace variation grown for private credit managers. those are the two reasons we started this venture about 10 months ago. david: does it feel crowded? new entrance like yourself, you have been in the industry for many years, but we have seen a lot of money get thrown into this direction. >> i think any strategy will always be crowded. if i see australia lending against private equity sponsors, that's a space of a lot of capital available. global funds are able to invest because if it's the mandate.

if you look at india on some of the smaller transactions, there has been a lot of domestic money raised where there can do 10 to 20 million. if you go larger, there's a lot to grow. i think their pockets are crowded, but we have always prided ourselves to be a solution driven business. i will give an example, solving problems would mean someone would come to us and say, this business is doing really well, but i promise my private equity partner with a minority stake, could you give me money to buy them out. that's really at the shareholder level. but i'm solving the problem for him where the private equity client might have needs. the founder doesn't think this is the best time or value for him to exit. give him money and buy out the private equity sponsor and give him more runway. that's one approach on a solutions based business.

david: running the risk of overgeneralizing, is the reason private credit is booming because almost nothing else is? there's also a lot of money that was raised as rates are going up. the cost of capital for these funds, their hurdle rates are forcing them up the yield curve. >> for sure. there's a distinction happening. i think in the u.s., this is a mature market. europe is probably five years behind the u.s., give or take. and it's still a virgin landscape. just to give you a perspective, you have almost 40% of gdp coming from the region, 30% of private equity, and less than 10% of private credit. i think there is space to grow. historically there have been reasons why bank of england has dominated in some of their exchange. we talk about that. but i think there has been a lot of capital that has been raised

predominately in the u.s. on a focus strategy. i think in asia, the capital that has been raised is more driven by, even specific markets like australia or india david: india has been a hotspot for you guys, what you guys looking at? >> we closed a couple of transactions in india for reasons i cannot top -- talk about it. i think, india, given the need for capital, they are missing a lot of transactions. we have hired one senior person based in mumbai just to make sure we can service our clients on the ground. and the team that we have hired and put in place has a lot of indian experience, including myself. indian will be a key market. david: are you sector specific or somewhere in between? x fairly sec or agnostic, but if

you take a step back, they have been fundamental value driven. even if we try to do a new sector, even if it's a credit investment with equity behind us, it would be driven by what value can we create, how much research can we do around the sector. david: in terms of where we are? we were talking during the break, where you think we are in the cycle in running the risk of over some to find the region. also the types of people that you look for. because for some, they haven't been in the half cycle. >> that is extremely important. take immense pride in what we've built. we get a lot of support from the last platform on a lot of related functions. the people i chose to hire is probably both. they have seen cycles, so these are seeing people who have been resting 15, 20 years, as have i, in this space.

that's a rare talent for a variety of reasons. but i also think these are people who are multifaceted so they can look at multiple geographies, multiple sectors, which gives us the ability to find relative value. i'm not forced to invest in australia. i could pivot to australia, so the ability of my team to be able to do that is externally important to me. david: are you looking to enter other markets? >> given our strength of the platform, china will be important. there is some demand because the need for capital is reduced in china. it's one of the only countries where has fallen. a lot of finances have moved on shore. so i think china is always going to be extremely relevant for us, particularly with the things we see.

there is relative value. is that the premium, understanding the market? >> i think it's a bit of everything, it's about understanding the market. it's about understanding what's the competitive positioning for competitive sectors. that's hard. we've got people on the ground in beijing, sydney, mumbai that we've talked about. i think having that connectivity is extremely important when you are investing in this space. unlike private equity, there's a cap. you get your money back less interest. and if all things got a plan. in the downside casey would lose a lot of money. i think having the onshore connectivity and people on the ground who can evaluate first, and forced closing the deal is important. david: you are basing hong kong so we can talk again, hopefully sooner rather than later.

credit partners go head here. we could be here all day, but for now, back to you. haslinda: thank you so much for that. david talking about the private credit market. the booming private credit market anticipated to be at about $2.7 trillion by 2027. still to come, indian markets don't seem to be pricing in any surprises ahead of the general elections beginning next month, we discussed the risks. keep it here with us, this -- this is bloomberg. ♪

haslinda: welcome back to bloomberg markets: asia, we have breaking, we have a story out of whom berg saying that the 98-year-old father is a target of a malaysian probe. the two eldest sons said the agency ordered them to assist with an investigation revealing for the first time that a month-long's probe is targeting the 98-year-old former premier. of course, we will bring you the very latest on the details of that story just slightly later. india starts trading in two minutes from here. we are weeks away from the start

of india's six weeks national elections. they are suggesting traders are relatively unconcerned about any surprises. for more on what the data is showing, let's bring in our equities reporter in mumbai. our markets vulnerable to a nasty surprise? >> if you look at the prices and the option market, the consensus seems to be that the market is not -- we know that the consensus can be wrong and markets are having relations to be quite wrong. if you look at the past, 2004 and 2009, the consensus was one day in the market reacted in a completely different way to their surprise. so, yes, it seems there is vulnerability because there seems to be a lot around the election results, which may be in the markets favor. haslinda: but what could be the risk out there?

>> at this point in time, after the state election that we had in key states in december, the outcome was in the favor of the ruling party. which kind of brought confidence to the market that probably modi will get what he's vying for. but at this point in time, the risk could be that the outcome may not be as strong as some of the markets could have been factoring in. you could always have surprises in politics. we are still one and a half months away from the outcome. we never know what may happen. clearly the market at this point in time is not pricing in any sort of negative outcome or surprising outcome, which kind of leaves them unprotected on the downside or to any large swings in the market, especially on the downside. haslinda: thank you so much, our equities reporter, it has just started its shading day, it is

in positive territory. it where we are in terms of the benchmark. pre-match right across the board and negative territory, since it's down to 10th of 1% losses for the nifty 100. in terms of this, let's take a look at the rupee, you are looking at the yuan on your board. but of course the rupee has been under a lot of pressure, falling to a record closing low just yesterday. we will keep an eye on the currency. it is a strong dollar story. we are keeping an eye on that indian rupee update after its lowest ever closed last friday. analysts expect this later -- latest bout of weakness to trigger support from india's central bank. it's bringing our effects and rates strategist. david, is there cause for concern that the rupee is at such levels? >> i would say has been range bound for the last few months. this month it has been weekly. some of it has been dollar strength. some has been awaited to the

yuan weakness as other asian -- asian currencies have entered this as the yuan is stabilizing. i think the next big risk is u.s. pc data is coming out later this friday. with fed chair powell speaking later that day, if the data comes in powell sounds hawkish. you see u.s. yield pushing higher, that would put more pressure on the rupee, but how is it that the central bank has plenty of reserves. it wants to defend the currency like it has done. more as plenty do so. i would expect this to be the beginning of a big decline. haslinda: baron mind india's on the verge of the bond inclusion. the rupee could recover and has lost ground. >> you see in flows with that 6.5 billion into the bonds. is it interested despite the inflows, we still see the rupee.

that is whether the election jitters are that general dollar strength that the inflows have been supportive. but not supportive enough to really break out of the range from the rupee sign. but having said that, they will offset any weakness that the rupee sees. haslinda: in terms of stability, it is there, and we can bet our dollar that the rbi will ensure that as well, right? >> the rbi meets next week and we will see how dovish or hawkish it sounds. it surprised markets with this rate cut. ecb, bank of england or rate cuts this year. the question is, how hawkish is the rbi. it's always really appealing, and different remains in this range with stability, you look at implied vulnerability. suddenly the markets are in expecting the currency to break out, certainly to the downside

anytime soon. haslinda: is the election likely to have any impact on the currency? >> because they expect modi will win, they will be supported for his views, market positive, if there was an upset, the markets don't hike, i think that could weigh slightly on the currencies. at the moment, we will already expect a modi win. it is sort of taken in stride. haslinda: our ethics and rates strategist. now coming up, the fund other of china's battery maker downplay a slowdown in eb sales growth. more from our interview with the ceo, next. this is bloomberg. ♪

haslinda: the founder of the world's biggest battery maker says the company is pressing ahead with expansion, despite the global slowdown in eb sales growth. in his first interview with an international news outlet since 2020, robert told bloomberg he is not worried about overcapacity and will crank up the output of more technologically advanced products. let's bring in our asia transport reporter.

put this in perspective for us. how can they still be so positive about the growth of the global eb market? linda: robinson just think cvs are really good product and he is confident that the world will continue as transition to the zero emissions vehicles. these are sustainable environments which just good products overall. in another factor is they realize that while china, the world's biggest eb market is moving towards market conditions, the rest of the world's transition cvs are still reliant on government mandates and policies, which is actually a good thing because the demand that's going to encourage customers and producers to continue to move toward cvs. haslinda: but the challenges, how we see them navigating geopolitical tensions, the threat of the u.s. ira.

>> ca tl finds these geopolitical -- geopolitics quite complicated. for the u.s., they have had to take on this lrs model, which they call the royalty and services model where they have this plan where they will essentially license battery making technology without having any of those clt ales -- ca tl workers working there. it's essentially a technological transfer rather than more substantial input from the chinese battery maker. in the big reason for going down this model is because of the ira restrictions. but they are confident that using this model they will continue to compete in the u.s. markets. haslinda: byd likely reporting record profits for 2023. what's in store for them this year?

linda: despite the record profits that many are expecting them to post today, it's actually looking very tough and the china ev market. byd kicked off another round of price cuts. this time taking targets at conventional gasoline vehicles from toyota and volkswagen. all of that is going to try to drive volumes, increase sales. but ultimately it could help their bottom lines as margins could suffer with all of these intense discounts. haslinda: the eb price war is continuing. what's different with the latest round of cuts from byd? will it make a difference? >> these price cuts from byd is really taking aim of conventional automakers. some of the world's biggest such as toyota and volkswagen, showing the ambition that they are looking beyond electric

vehicle rivals, such as tesla. they will take on the big -- the bigwigs. byd's products, even though they have really big discounts, still continue to pack a lot of technological features. so they think these other products that will win over customers and really help them to keep growing. haslinda: thank you so much for those insights, our asia transport reporter, as we have been talking about byd set for earnings. let's take a check on how byd stocks are doing at this time, also tracking xiaomi on the back of that. it had its ambition for its maiden su seven to become one of china's three best-selling luxury electric vehicle models as something to challenge tesla and other models in the market. up. uid up by .5% ahead of its earnings.

let's look at the page cyclically in terms of those currencies. we are looking at the end. 152 may be the level which we see intervention, but not at the moment. six he five 34 versus the usd. that is it from bloomberg markets: asia, david middle east in africa is next. keep it here with us. this is bloomberg. ♪

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lexus is daybreak middle east and africa. our top stories. israel cancels a trip to washington after the u.s. allows a gaza cease-fire resolution to