>> i'm paul allen incident -- al len in sydney. sheri: welcome to daybreak asia. our top stories, asia head chop integrating after the biggest tech slide in 2020. facebook's meta reels from a wipeout. amazon could help drive a market rebound. the economist giant -- the

e-commerce giant beating record profit. beijing to make history as the first city to host both versions of the olympics. we are live inside the games bubble. inflation numbers out of south korea coming in faster than expectations. the core cpi number year on year is growth of 3%. the expectation was for 2.8% gains. this would have already been a decade high, but it has topped that and accelerating from the previous month when it was at 2.7%. we are talking about pressures from both sides, supply-side pressures and demand-side pressures as we are seeing this bounce in consumption and higher services spending. 3% growth in cpi numbers for the core year on year. also 3.6% gainin the headline -- gain in the headline cpi number year on year. month-to-month, growth of .6% for headline cpi, which is above

expectations. this coming on acceleration from the previous month of december. suffice to say it is much higher than the bok's target. we will continue to watch what sort of reaction we get from the bok and policymakers in south korea. paul: let's take a look at the asx, which just opened for trade in australia. the index down a quarter of 1%. we have a staggered open. a building products company off 40% right now. i am looking for headlines on that. it is hard to see with the reason for that is. it announced it will return $3 billion in surplus cash to shareholders and had its price target raised, but off in the early going. new zealand still a bit weaker,

aussie dollar holding pretty steady at the moment. we will be keeping an eye on some of the energy producers in australia as the staggered open continues. oil now above $90 a barrel for west texas futures. nikkei in positive territory. shery: positive territory when it comes to u.s. futures as well. we are seeing them gaining 1% for s&p futures. this after we saw them tumbling in the regular session. investors digested disappointing results from meta platforms. now after the results from amazon and stop jumping, meta is getting a lift as well. we are seeing this huge upside when it comes to the futures space in the u.s. crude prices still under a bit of pressure, but above the $90 a barrel level for wti, given we continue to see this concerns over ukraine-russia tensions,

not to mention we are seeing winter weather in the u.s. threatening to shut down some oil production. paul: earnings of the two biggest tech mega caps in focus today. meta shared more than $250 billion, the biggest wipeout in market value for a u.s. company in history after it reported stolen growth. amazon providing some relief after the bell. it will raise its prime membership prices. ed ludlow has the details. let's start off with amazon. what were the teeth -- the key takeaways? ed: amazon telegraphed the december end of the quarter would be hard, labor shortages, inflation, so they would have to spend, but they did relatively well. $137.4 billion of revenue. in a quarter, that is

astonishingly good. for the first time they breakout advertising as a line item. cloud strong. topline growth coming there. they smashed it on the bottom line. they had to hire these extra people and mitigate the supply chain disruption, the bottom line looking really healthy. the outlook a little conservative, but they raised prices for prime this year, 2022. the market seems to like it. shery: where do we see the impact of omicron? ed: there is a difficult jobs market right now. they wanted to hire 150,000 people in the fourth quarter. they said they hired 140,000, so not quite on target. they are continuing to talk about disruptions in the supply chain stemming from omicron. that disrupts logistics, disrupts warehouses, but they seem to be getting over that hurdle. the question is the stickiness of the product and the use of

amazon in the e-commerce business as omicron improves. they raised prices on prime in the u.s. only. there were a lot of questions on the call. do you think people will cancel their primes obstruction? amazon seems bullish that people won't, even though the cost is going up. paul: we knew it would be an ugly day for meta. meta shares rising after hours. we are seeing some dip buyers coming in. ed: there was evidence from fidelity's retail trading platform that there seem to be dip buyers coming in, but there was no stopping the downward momentum of meta's stock. the street took time to look at it. they thought the outlook was a surprise, decelerated ad spending on the platform. then they took time to realize the metaverse has a multiyear

horizon, but it is hitting profitability right now. facebook's lab that focuses on metaverse lost in 2021. how much will it have to spend on an ongoing basis to make metaverse a reality? you know what i mean. shery: that is going to be fascinating to see. ed ludlow with the latest on meta and amazon. there is a reason we are seeing so much volatility in the tech sector. rising yields, more valuation concerns leading to questions about big cap tech. let's bring in a founder and advisor. where do you stand? >> i believe that is the case. technically, strategically, fundamentally we are at the end of 13 years of tech equity leadership within the united states. that said, u.s. equity

leadership globally, which has also been the case, is coming to its end. the nasdaq q's were down over 4%. u.s. value is down less than 1%. year to date, nasdaq is down 12%. the non-u.s. markets down less than 3%. it is what i called last year a golden age of asset allocation, which for a decade of more -- or more people did not care about asset allocation. shery: you talk about value versus growth. we have seen a bit of outperformance. it has been not necessarily consistent. this chart showing value versus growth despite the fact that yields are holding up. when can we start to see some consistent outperformance in the value sector? jay: i think that is a great

question. my tactical outlook for the next couple quarters is we are on the cusp of seeing lower-than-expected inflation numbers. everyone is peak fed hawkish ms., talking about -- hawkishness, talking about six or seven rate hikes. i think we are at the beginning of lower-than-expected inflation on better-than-expected growth data. q1 in the u.s. will be slow in the u.s. because of -- in the u.s. will be slow because of omicron. the market is overly looking to the summer of 2022 and beyond. we are talking about growth in the u.s. to 3.4%. pre-covid, the u.s. averaged 2.3% growth in the five years up to and including 2019. if i'm right, lower-than-expected inflation numbers means the short end of the treasury curve can rally. the two year went to 120 basis

points. i thinking can rally back -- i think it can rally back to 100. we will watch the auto sector. production is soaring. when you see growth picking up around the world and the 10 year bond above zero for the first time in three years, long-term treasuries, yields can continue to go higher. therefore everyone is concerned about yield curve inversion. the reality will be yield curve steepening. it supports the rotation trade from growth to value and from u.s. to non-u.s. that is where i think we will play out over the next couple quarters. paul: we are seeing tremendous volatility in the markets at the moment. have you priced in the fed's actions for 2022 or is there more upheaval to come? jay: that is a great question. as i talked about peak fed

hawkishness in my writings weeks ago, i was too early, but with others saying seven rate hikes in 2022, we are officially at peak hawkishness. i think the fed will raise three times. they will start qt. to me, the set up is perfect for non-u.s. equities. just think of the following issues. the u.s. has fiscal drag. the u.s. has the fed tightening. europe has fiscal reasoning with the next gen and ecb doing nothing. japan has a huge fiscal package. china is easing. so the policy mix isi appealing -- is appealing. you have a weak dollar. it is kind of counterintuitive, but fed tightening cycles lead to a weaker dollar. and a weaker dollar here is a huge tailwind both for non-us equities and for commodities. paul: would you be looking at

chinese equities at the moment, and if so, what space are you comfortable with the regulatory environment there? jay: i love it. you must be reading my stuff. i am quite bullish on china. we have a view that we call "look to the east." we say china 2022 will be a glide path year. it will be a year where the focus is on president xi's third term in november and very little will be allowed to disturb that. you have a market that is oversold, that people do not like, that is cheap as it is today relative to the u.s. in the past few years. while you have meta down 25%, the china tech etf was down about 1.5%. we like the a shares, we like

government bonds, we have china credit. we are significantly overweight chinese assets. shery: we do our homework. we read your stuff, so thanks for joining us as always. you can find all his commentary, tpw advisory founder and principal. you can get news to get your day going on today's edition of daybreak. it is also available on mobile on the bloomberg anywhere app. the bank of england and ecb says more hawkish than expected policies as the battle to fight surging inflation intensifies. kathleen hays is here with what they did and said. they were both hawkish. kathleen: more hawkish than expected. the bank of england was widely expected to hike the key rate today. 25 basis points was the call.

the governor of the bank of england has been pounding the table about inflation for a while. the surprise was 4 out of 9 of the boe board policy members were pushing for a 50 basis point hike. they had not done anything like that since 1997 when the boe got independent. andrew bailey is one who pushed back. it is wiser he said to take steps like 25 basis points at a time. this is all about inflation, an inflation rise that they have not stopped yet. >> we have not raised interest rates today because the economy is roaring away. the economy is only back to the size it was before the pandemic a couple years ago. an increase in bank rates is necessary because it is unlikely inflation will return to target without it. shery: 5.4% year over year.

look at how cpi has surged. 4% well above the 2% target. one of the drivers is energy. the u.k. government unveiled a $1.2 billion plan to help british people pay their energy bills. that energy price that has risen so much is one of the reasons that the boe raised its target for peak inflation this year in april to 7.25%. they are also going to run off their holdings of u.k. bonds. they will do it passively when it comes to corporate bonds. they want to get to zero by 2023. then they will start selling those corporate bonds. the european central bank, just think of this -- in december, christine lagarde said at least twice during the press are following the policy meeting, no rate hikes in 2022. when she was asked about it today, she just didn't answer. she did put a lot of focus on inflation for a good reason.

if we look at this chart, you can see the team at the ecb downplaying, saying it will start pulling back, the supply side disruptions will ease. it has not eased. that is what is driving them as well. christine lagarde said the march and june meetings will be critical in what they do. bank of america sees a move in december. jp morgan says a rate left will happen at the end of the year -- lift will happen at the end of the year. watch inflation. if they don't have any progress getting it lower, we could see the ecb as well. christine lagarde has certainly opened the door. paul: our economics and policy editor kathleen hays. the western australian mr. for mines -- minister for mines and petroleum on how firms can cultivate better work environments. but up next, we look into what

the winter olympics means for china and the world as we count down to the games opening ceremony in beijing. this is bloomberg. ♪

vonnie: i'm vonnie quinn the first word headlines. president biden says a major terrorist threat has been eliminated during a raid in syria. an islamic state leader was killed during the assault after he detonated a suicide bomb as u.s. forces closed in. he took over as leader of the terrorist organization in 2019 and u.s. intelligence say they have been tracking him for months. pres. biden: last night, operating on my orders, the u.s. military forces successfully removed a major terrorist threat to the world, a global leader of

isis. vonnie: the u.s. is warning of a block by russia in order to justify an invasion of ukraine. intelligence officials say the content shows a reportedly ukrainian attack on russia or russian-speaking people that would warrant sending troops across the border. the kremlin has repeatedly denied plans to attack ukraine. the president of the international olympic committee has played down concerns about the safety of chinese tenants. she can move freely in her home country. critics, including u.s. house speaker nancy pelosi, claim the ioc is covering up for china to bolster its own bottom line.

global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: despite the cold shoulder from some nations, a covid cautious opening ceremony is set to start at beijing national stadium friday night. some world leaders are taking advantage of the event for their own political power plays. bloomberg's kurumi mori is inside the capitol. what does the opening ceremony mean to china? kurumi: president xi jinping will use the opening ceremony as his chance to boost china's image, so it is a big day for him. he has been surprisingly hands-on and making many decisions around the games, even in expecting-- even inspecting closets inside rooms. he is staking his reputation on whether these games will be a success. russian president vladimir putin

will attend tonight, despite his country technically being banned from the games. we are keeping an eye on the meeting happening between president putin and xi ahead of the ceremony. it will be their first in person meeting in more than two years. paul: nancy pelosi is urging athletes not to risk angering china by speaking about its human rights record. how much of the concern does this mean? kurumi: house speaker pelosi: yet risky for athletes -- calling it risky for athletes to speak out about human rights worries. they were warned to keep quiets on politics -- quiet on politics. the ioc chief said athletes can safely make political statements at the media briefing schedule right after competing, but some of the athletes i have been in contact with said they would rather focus on the sport than risk their safety.

maybe this morning from china could be having an effect that they really wanted. -- warning from china could be having an effect that they really wanted. paul: we have plenty more to come on daybreak: asia. this is bloomberg. ♪

shery: u.s. futures extending gains in the asian session with s&p futures gaining more than 1%. the nasdaq 100 futures up 2%. what a turnaround from the regular session when we saw stocks tumble. after the market closed, we had some positive earnings results from amazon, snap gaining more than 50% after hours. that has helped turn around sentiment. paul: let's get a quick check of the latest business flash headlines. snap shares jumped in late trading after its revenue projections beat estimates.

snapchat's first quarter revenue of up to $1.08 million after reporting a 42% increase in the last quarter. snap's market surge raised a decline which came after meta's disappointing earnings. the world's largest pension fund is likely to post a seventh straight quarter of earnings gains friday. the investment fund could see returns of almost 2.4% in the third quarter according to one analyst from morgan stanley. while losses are expected in its to mystic bond and equity portfolio, gains in overseas shares are expected to take over ¥200 trillion for the first time. apple had its strongest quarter for iphone sales yet in india. data from a market research firm shows sales rose 2.3 million units in the fourth quarter, up 34% from a year earlier. apple trails show me and sims on in terms of units sold, but it

has pulled in higher revenue. the life insurance corporation of india could have embedded value of $67 billion according to the government. a top finance ministry official tells us it could file its ipo perspective as early as next week. the government is said to be pushing for an overall value of as much as $200 billion. they realized that would make it india's second largest company by market cap. the chronic shortage hits nintendo. the consul game maker is cutting its switch sales outlook for the second quarter in around. we have details on that in a moment and a check of markets for you as well. this is bloomberg. ♪

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♪♪ ♪♪ shery: we're tracking the fallout over the global supply chain crunch. the top stories, amazon, $22 billion in the fourth quarter as it offered more bonuses and secured space on any ship it could find to meet demand, record shopping over the black friday season. amazon is raising prime membership fees later this month. ford is the latest auto maker, 11% drop in deliveries last

quarter while c.f.o. john lawler sees bottlenecks easing this year, he is warning of higher commodity costs ahead. the japanese government is set to propose a scheme to promote data sharing among companies in asia to improve the region's supply chain. this will be similar to europe's efforts and the nikkei reports the goal is to counter the monopoly held by large tech terms in the u.s. and china. paul: let's take a look at bulk shipping rates which have continued to slide from october peak amid the slowdown in demand from china. china's curbs on steel production is capping demand on bulk ships to transport iron ore. freight rates remain above normal with prices six times higher than the five-year average. and bloomberg terminal users can read more about these stories in our newsletter supply lines. shery.

shery: nintendo the second quarter in a row as they grapple with a chronic chip shortage likely to persist this year. the profit outlook has a new pokemon title boosts sales. we start with the semiconductor shortage, how bad was it? >> well, in terms of nintendo and its forecast, it wasn't as bad as sony on the previous day. sony cut 3 million units from its forecast, mint only cut one, it's down to 23 million switch unit it expects to sell in the next fiscal year. for console makers overall, whether it's soapy, nintendo or microsoft, they're facing a situation on the back of the line when it comes to semiconductor capacity. phones have the highest volume, lucrative chips. auto makers with more chip

capacity. you have all of these companies, console companies themselves don't sell many units and large consoles to ship. the issue with logistics and shipping really hits them hard as well. paul: so looking ahead to the coming quarters, what did nintendo have to say, what is the games pipeline looking like? >> nintendo is usually extremely conservative, but in this case, the president said the console is only in the middle of its life cycle, five years into it, the middle of the lie cycle. momentum going into the new year is good. we are expecting a new legend of zelda game and more than 10 marquee games from outside developers are coming this year. in terms of software especially, the switch platform does look like it will have a strong year. shery: bloomberg's asia tech, let's take a look at some of the other big stories as we countdown to the start of

trading in tokyo, we'll be looking at reaction to earnings that came after thursday's close in japan including third-quarter operating uniform and next in focus right now after saudi arabia's fund has taken more than 5% stake in the video game maker. tokyo setting new guidelines for virus emergency to account for omicron which is more infectious by posing a less severe risk than previous variants. in south korea, the country is keeping current distancing rules for two more weeks as covid cases are at a record high. we have also seen inflation remaining stubbornly elevated with c.p.i. rising 3.6% in january. now we're expecting fourth-quarter earnings from companies. paul: still to come, take a look

at equality in australia's mining sector as a report puts the spotlight on widespread bullying and harassment, western australia's minister for mines and petroleum joins us next. this is bloomberg.

shery: bank of england governor

andrew bailey says policy makers will race rates gradually after they came to a bigger hike than accepted. he addressed tightening and the decision to raise rates by 25 basis points. >> i think it likely that, you know, we will raise rates again. i think it's more likely than not. i would say that, however, please when i is a i that, don't overinterpret it. there are i think good reasons are now forecast in our reports suggest that we will see inflation, we will see inflation come off. we will see demand start to weaken and depending on the energy prices, we might see something faster and better. there is a lot of uncertainty around it. that to me is the key point and the question. for me, it was a question saying i think it makes sense to move 25 basis points. we have a period of time to assess that.

>> the market is assessing 1% by may, are they right? >> it might be very much we move by 25, we're going now take stock, i don't have any number in my head until may, so well take stock. i want to say the markets, you have to form a view based on what you're observing in terms of economy just as we do. >> are they off the mark or could they be in line with expectations? >> well, we're going to take another view in march. >> of course. governor -- >> again in may. >> is said to be around 220 billion smaller by 2025 even before thinking about sales. do you have an idea of where the terminal size it would be in your mind? >> that's a very, very good question. we don't actually in the sense that we don't have a figure. we have no real experience on this front and we're going to have to feel out, find out why.

the reason is that clearly, i mean we're talking about what is the level, the steady state level of central bank reserves in the system. now, there are two sort of book marks, if you like. what it is today where i would say, you know, it's in a steady state. what it was before the financial crisis, before we did stocks at the easing path where it was very low and of course it was not critically, and clearly the system needs more reserves, we changed the regulation for banks. banks have a greater demand for reserves in that basis. it's clearly higher. paul: bank of england governor andrew bailey speaking with bloomberg. let's get to vonnie quinn for a check of the headlines. vonnie: european central bank president is no longer ruling out an interest rate hike this year, a tightening stance.

delivered hawkish products citing record inflation and keeping asset purchase plans and other measures unchanged. it has let investors to bring forward bets with some expecting a first rate hike as soon as september. four of boris johnson's aides have quit deepening the governance. the director of communications and principal private secretary resigned late thursday over the so-called party gate. most damaging was the departure of long-standing ally that quit in protest over what she called a remark johnson made about opposition rival. the nominee to be the fed's top is wall street bonuses, she is committed to working with other regulators to review compensation rules. officials have tried several times to write legislation to reign in bonuses.

the final exam is a record low for the 59-year-old test. in november, 43% of candidates finished the third and final exam of the series, the third lowest pass rate for a level three. the p.s.a. cited changed forced by the pandemic for the results. global news 24 hours a day and on "bloomberg quicktake" powered by 2,700 journalists and analysts in 120 countries. i'm vonnie quinn, this is bloomberg. paul. paul: for this week's equality segment, we look into the latest workplace culture report which shed light on issues of widespread harassment and bullying in the industry. the study shows one in four women endured sexual harassment and half of the staff had been victims of bullying. bill johnton, the rio tinto

c.e.o. said he found this report into his own company very concerning. he says, well, it's unlikely that this company, that this problem is confined to just one company. as far as you know, how widespread is this issue throughout the industry? bill: thanks for the question. i have no doubt that this is a widespread problem across other companies as well. i also should point out that this was a global survey, not just rio's western australia operations, but no doubt there are many difficulties for workers in respect to sexual harassment, bullying and racism here in western australia and the mining industry. paul: there is an inquiry into sexual harassment in the mining industry. do you think the government will

be willing to legislate if necessary or is the legislative framework enough and it's just compliance and enforcement that is the problem here? bill: the laws in western australia are actually very strong. this is a question of the culture of the companies. i'm very disappointed that they have not been truthful about the extent of the problems until now. the revelations by our local newspaper the western australian has certainly opened up the truth of the problems here in our industry and the government is determined to get to the bottom of it and take action. we want to make sure that all victims understand that we understand with them and that they should come forward and receive the support of government in dealing with this issue. shery: this is such a widespread ir, seems to be a very cultural thing. what can be done in order to really push back against this sort of behavior? bill: yes, that's right, this is

clearly a cultural issue rather than question of legislation or enforcement. and so culture starts with the companies. that's why i welcome rio's decision to do this independent inquiry. i encourage other companies to follow the same pathway. i understand chevron has announced that they will also be doing an external review of their workplace culture and i would encourage other companies to do it. they need to come to terms with the problems themselves. the government is prepared to work with them, but, you know, we can't allow this situation to continue in the way that it has in the past. to get the most out of the mining and resources industry, we need all of the talent is available. that talent includes women, it includes migrants, it includes that in the workforce. we need to make sure we have a workforce free from racism,

sexual harassment and bullying to make sure we get the most out of our industry. shery: let's talk a little bit about the workforce itself at a time we see labor shortages affecting different industries, is this a concern also in the mining sector? bill: yes, here in western australia we have labor shortages, unemployment is just over 3% now and we are working with industry to unlock domestically and at the time we'll look forward to restarting international migration. paul: yeah, of course, part of the shortages the problems being caused by w.a.'s very, very tough border restrictions. can you give us some update on when those might be eased and what effect that would have on solving the labor shortage

issues. bill: well, western australia has traditionally received a high level of international immigration. the governor of western australia doesn't control the international border, so we would look forward to create a number of migrants to move to western australia, that's what we have seen in the past. i'm not responsible for international migration, i can't really comment further on that. in respect of liability from other states, there are specific arrangements that we have done with the resource industry to bring in additional labor where they were expecting to be able to bring labor in the short term. we all know that the current restrictive arrangements with the east coast will change, but we have to make sure that we continue to protect western

australia citizens. we have had effectively, continue to have a very, very low rate of covid here in western australia. we don't have the big outbreaks that they have in sidney and melbourne and we still have only one death from covid in western australia for a person that caught the disease here in the community. shery: bill johnston, western australian minister for mines and petroleum, thank you very much for your time and insights today. we have more to come on bloomberg asia. this is bloomberg.

paul: securities and exchange commission is preparing to take up a range of policy changes starting next week in response to wild trading in meme stores last year. gary discussed how to better protect investors in an exclusive interview with bloomberg. >> we do have a broad agenda. crypto is a part of that agenda. it's an agenda to have the capital work and the investments work better for the public and companies on the other side, to drive for efficiency in these markets. as to your question about crypto, the agency is really just looking at more investors and many of these tokens, not trying to prejudge anyone, but many of these tokens have the

attributes of securities. they're raising money from the public and the public is anticipating profits based on the efforts of others. and so we've brought a number of actions. we're trying to work with the various crypto platforms, the exchanges, the lending platforms to come in, get registered, find where we can to adjust our rules set to get the investor protection for the public. >> as you say, you have encouraged exchanges to come in and get registered. at the same time a lot of them have not as far as i can tell. >> i noticed that. no, it's because, look, if you are a platform and you have 75 or 100 or sometimes 5,000 tokens on that platform, probabilities are that a number of them and maybe many of them are what's called a security.

and congress painted with a broad-brush and it comes down to this -- are you raising money from the public and the public is anticipating profits based on the efforts of others. and my predecessor chair clayton, the agency that i'm honored to chair at this point in time is going to try to pursue investor protection and if that means bringing greater enforcement actions, we'll do that, but it would be better to have these platforms come in, work with us and come under the securities loss. david: do you think you have done anything you can under the statutes? do you need legislation to really get registration from those exchanges? gary: i think the laws are clear as laid out in the 1930's and we have an ability to work with these exchanges using various authorities to basically tailor some of these. these cryptover exchanges and

lending platforms have operated differently than the traditional new york stock exchange. would it be helpful to work with congress on some things, i have said this in the past around some details around transfer agents and others, yes. but unless congress says otherwise, we have to insure there is investor protection in this space and we'll work with the commodity futures trading commission where there are some that are commodity tokens. while many of these are securities, some may be under their remit and we work together as two federal agencies. david: let me turn, gary, to the second item on the agenda, in no particular order and that is payment for order flow, something that you came out against. last august you said you were considering banning it all together. where does this regulation stand and at this point do you think it's possible to ban it all together or more likely we'll have full disclosure? gary: again what we're trying to do within our remit is help

investors get a better deal on one side and companies raising money on the other side a better deal and drive greater transparency and efficiency in the middle of the market. so in the equity markets right now, if you place a market order, retail market order, 90, 95% do not go to the exchanges, do not go to nasdaq or new york stock exchange, they go to wholesalers. shery: gary gensler exclusively speaking with david weston. we are getting the five-year yield rising to zero for the first time since january of 2016. we're also seeing the 10-year yield rising to 10.1%, the highest as well since january 2016. this, of course, as we have u.s. treasury yields really surging today, the 10-year yield, for example, here in the u.s. rose past that 1.8%, treasuries

followed the eurozone with concerns about persistently high inflation and now we have this reaction in j.g.b.s as well with at five-year yield rising to zero for the first time since january of 2016. let's stay in japan, the world's largest pension fund is likely to spoke a seventh straight quarter of gains when it reports third-quarter results in the coming hour. let's get more from our senior editor in tokyo. what are we expecting to hear from the fund today? >> yes, it's going to be another good quarter or at least that's what we expect, the seventh straight quarter of gains that would likely be a record for the number of gains that it's had in a row. we're expecting that they'll post something on the order of 2.39% return in three months end of december, that's according to estimates from morgan stanley

and e.f.g. here in tokyo and it's looking that it's going to be another day obviously when the pension fund poses losses, it tends to make headlines. when they post gains, they don't tend to make as many waves. it's going to be probably another good couple of months. paul: so what is driving the g.p.i. series of gains? >> it all goes back to the various portfolio changes that they've had over the last couple of, the last decade, i would say, in particular, the it last portfolio change that they have that came into effect in would have been just over a year ago now. that puts their assets 25% each in domestic and foreign equities and bonds. since then, they tend to have whenever one has had a bad quarter, something else has made up for it. for example, in the three months that you'll be reporting today,

japanese equities didn't have a great run in the last three months of the year, but foreign did gain. we're expecting foreign equities they will lift the portfolio. paul: senior editor in tokyo.

shery: welcome to daybreak asia from bloomberg's world headquarters in new york. paul: asia's major markets have just opened for trade. big tech slides the most since 2020 after facebook's meta sees a record wipeout. amazon bucks the trend. investors face a sharp session

ahead. we have the latest as beijing makes history as the first city to host both versions of the games. shery: take a look at the japan open right now. we are seeing pressure for the nikkei and topix in equity markets across japan. information, tech and industrials leading declines. energy is gaining, given wti is above that $90 a barrel level. this as we continue to watch jgb. we have seen the five year yield rising to zero for the first time since january of 2016. the 10 year yield is also around that .19%, given we have seen that huge rally in yields both here in the u.s. and the eurozone. concerns about persistently high inflation continue. we had a more hawkish ecb and boe. take a look at the kospi, it is

gaining 3/10 of 1%, extending those gains from the previous session as it plays catch up after the lunar new year holiday. we have core cpi out of south korea coming in faster than expectation, a growth of 3% year on year, the highest in about 10 years or so. continue to watch those pressures on tech and other sectors across south korea and asia. the korean won at the moment is also gaining against the u.s. dollar. paul: let's take a look at how we are trading in australia after the first hour. flat at the moment. up just by a few points. new zealand a little weaker at three quarters of 1%. keeping an eye on the aussie 10 year, the yield creeping up below 195.

we will hear from the reserve bank of australia at the bottom of the hour. the quarterly statement on monetary policy expected to have updated growth forecast. there could be news as to rba's intentions for 2022. energy stocks flat on the asx, surprising considering the action we have seen on the oil price. let's look at west texas above $90 a barrel. that is the first time it has been above that since october 2014. the spread with brent narrowing to less than one dollar. nasdaq futures pushing higher. we saw that impressive rout of meta shares. amazon and snap performing pretty strongly after hours. we will take a closer look at that and a moment. the yield on the 10 year pretty steady there, 183.78. shery: really earnings of two of the biggest tech mega caps in

focus today. facebook parent meta shares more than $250 billion, the biggest market wipeout and a co -- wipeout in a company in history. amazon says it will raise its prime membership prices. let's start with amazon. how did they do? ed: $137.4 billion of revenue in a quarter that was disrupted. supply chain disruption stemming from omicron, labor disruptions and a shortage of labor, but a big beat on the bottom line. massive profit for amazon which was aided by the value of their investment in an electric vehicle maker. the sharp reaction in the shares was to the raising of prices of amazon prime in the u.s., which raises to $139 annually. it is not just discounts on shipping you get, but there is a

content pipeline on the way. the new lord of the rings series is coming. i am stoked. you are getting football on amazon prime as well. then you come to those other items. remember, amazon is the sum of its parts. the advertising business seem real gains -- seeing real gains. the same for the cloud business. real contributors to profit. while online store sales were down 1% from a year earlier, looking at futures, looking at the after-hours reaction, are we on course for a big gain in tech stocks on friday, reversing the decline we saw thursday driven by meta? paul: west coast reporter ed ludlow there. asian stocks are facing a choppy session after the latest tech rout in the u.s.. most markets are set to return after the lunar new year break. china still on holiday. joining us for more analysis is

the head of apac equities and credit at ubs wealth management. we saw an impressive balance for equities in singapore and korea when they came back from the lunar new year holiday. hong kong opening today after its break. what are you expecting to see? >> generally speaking, the greater china market is reasonably constructive. we are seeing in some parts of the world, maybe last year. therefore -- [indiscernible] we are not dealing with rising rates as we are in china. i think it could be quite a constructive set up. paul: the internet stocks of china certainly appealing in terms of price, but they are

cheap for a reason, aren't they? are you confident that the regulatory uncertainties are behind us? >> we can probably not say that everything in terms of regulation is already out, but many think markets wrongfooted last year. authorities see that they need to provide more transparency on what they want to do and how they want to do it. that seems to be slowly settling in. there is another fundamental reason as well. for the last nine months, for the last year, many big platforms went into investment mode again. typically you take 12, 15 months for those to bear fruit. beyond the regulation, there could be some earnings come back in the second half that people try to price in early. shery: the big news this week is the start of the beijing olympics.

are we going to see any market action related to this major sporting event? hartmurt: we have done quite a lot of work around it. typically winter liv-ex are not big -- winter olympics are not big for the market. we do have many well-known names from the u.s., europe, and up-and-coming ones from china. the idea is they have underperformed because of production issues. they tend to perform, the western once, 12 months ahead of -- western ones, 12 months ahead of big soccer events. this is more likely to be a driver than the winter olympics. shery: what about those more secular stories around the region? what is the theme going into 2022 later into this year?

harmut: in our region, we have a couple of those structural stories. the internet names, the chinese internet names, there are more than chinese name, they provide value. we look at health care value that suffered in terms of performance. last but not least, asia, especially china, korea, japan markets leading in many green technologies. there is a lot to choose from. paul: we did hear from the ecb earlier. a hawkish hold from christine lagarde, joining the rba really as one of the more two dovish central banks in the developed world. which one of these two will move first? what do you see you doing to the currency pair? harmut: rba is moving first we

think. for the ecb, what complicates everything is they need to keep the currency together. it will be more towards 2023. we will see moves on the rate side, but it will not be the first one. it is a bit difficult for them. they have different economic areas, so they will not be in front of the curve. [indiscernible] shery: always good to see you. ubs wealth management head of apac equities and credit. we are watching some movers across japan. nintendo at the moment gaining a little bit, this after they cut their switch sales outlook for the second quarter in a row. but they did raise their operating profit outlook to ¥560 billion as a new pokemon title boosted sales. we are also watching nexon. a sovereign wealth fund revealed it has taken more than a 5% stake in the videogame maker.

we are seeing gains of about 1%. let's get to vonnie quinn with the first word headlines. vonnie: the bank of england has raised its key interest rates in a bid to contain inflation. that is on course to top 7% this year. five of the bank's nine policy makers supported a 25 basis point increase, with four members unexpectedly voting for a hike up 50 basis points. the boe announced plans to start unwinding its $1.2 trillion in bond holdings. the european central bank president is no longer ruling out an interest rate hike this year. lagarde delivered surprisingly hawkish comments, citing record inflation after keeping as prices and other measures unchanged. that hawkish turn has led investors to invest on ecb actions with -- to invest on ecb actions. four of boris johnson's top aides have quit.

johnson's chief of staff, director of communications, and principal private secretary resigned late thursday over the so-called partygate. most damaging was the departure of a long-standing online. she quit in protest over what she called scurrilous remarks johnson made about an opposition rival. the u.s. is warning of a plot by russia to release a fake video to justify invasion of ukraine. intelligence officials say the contents will reportedly show a ukrainian attack on russia or russian-speaking people that would warrant sending troops across the border. officials describe russian intelligence as closely involved in the plans for a staged video. the kremlin has denied plans to attack ukraine. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: coming up next, the winter olympics' most political moment will take place in the

coming hours with a handful of world leaders set to attend the opening ceremony in beijing. we will have a report from the olympic bubble. plus we get insights on china's athletic ambitions from the author of the book "sporting superpower." this is bloomberg. ♪

>> the biden administration will not send any diplomatic or official representation. >> the australian government will not be sending any official representatives. >> the government has no hesitation in raising these issues with china. >> given the ongoing crimes against humanity. >> mostly to do with covid and the logistics of travel. >> we are far more worried about the political asian of the next months to come -- the polit ization. >> no one would care whether they come or not, nor would it have any impact. shery: some comments by world leaders and officials ahead of the world olympics in beijing. despite the cold shoulder from some nations, the covid cautious opening ceremony is set to begin at beijing stadium friday night.

some world leaders are taking advantage of the event for their own political power plays. bloomberg's kurumi mori is inside the bubble at the chinese capital. how significant is the opening ceremony for china? it seems we don't have kurumi at the moment, but she is in the olympic bubble. coming up next, we will be discussing nintendo. the chronic chip shortage hits the company with the company cutting its switch sales outlook for the second quarter in a row. details ahead. this is bloomberg. ♪

paul: we are in the middle of earnings season in japan.

50% of the nikkei is now done reporting. we will have a look at the topix, currently pushing higher by one third of 1%. utilities are the best performing stocks. it off one third of 1%. consumer discretionary better than 1/5 of 1%. nintendo performing well. kind of fits into both of those categories, better by 1.5% now despite cutting its sales outlook for the switch console again, this time due to the persistent chip shortage. let's bring in our tech editor. >> both reported operating profits significantly above market expectations. both of them revised forecasts for fourth-year operating profit up. sony dropped after its earnings. it is down to the nuance.

nintendo cut its forecast by only one million units. it also foreshadowed this in his earlier earnings report, so the market kind of had that in its mind. it has a strong software lineup both this year and a pokemon title helped it through the holiday period. the company has said it is part of the challenges. it is worth mentioning it launched the switch oled model in a covert. it sold -- model in october. it sold 4 million units -- million units of that. it is raising what i can charge going forward. shery: we are seeing a lot of activity in the sector. microsoft kicking off that talent acquisition campaign with its activation deal. you have sony buying bungie as well. might nintendo join the chase? vlad: microsoft's division is

$63 billion. nintendo is saying we are spending zero billion. there is a great quote from the president, almost the signature nintendo statement, that the brand was built upon dedication by employees. having a large number of people who do not possess nintendo's dna would not be good for the company. nintendo is not closing the door, but it is not going to be in that market. paul: the switch console now in its sixth year on the market. how much longer can nintendo keep it going? vlad: nintendo seems to be super conservative in its outlooks and estimates, but it is bullish on this. despite being as old as it is, the president said it is just in the middle of its lifecycle. he feels there are strong movements in the software lineups. there is a new zelda game. there is a game called splatoon

coming up. it is worth saying this which is the fastest console to achieve 100 million units sold. shery: our asia tech editor joining us with the latest on nintendo. another story to keep an eye on as japanese earnings roll in, warren buffett's japan trading houses paying off what they expect is a record breaking rebound in profit. they all surged since 2020, when buffett first revealed his bet. here is a quick check of the latest business flash headlines. the world's largest pension fund is likely to post seventh straight quarter earnings gain on friday. japan's pension investment fund could see returns of almost 2.4% in the third quarter according to one analyst from morgan stanley. while losses are expected in its

domestic bond and equities portfolio, gains in oversee -- in overseas shares are set to take off for the first time. amazon soared in late trading after announcing plans to increase its prime membership price by $20 per year. that is the first time it is raised the cost since 2018. amazon fourth quarter profit topped expectations, led by its cloud computing division. however the company sales guidance for the first quarter came in short of estimates. snap shares jumped in late trading after its revenue projection beat estimates. snapchat's parent forecast forecast first quarter revenue up to $1.08 billion after reporting a 42% increase in the last quarter. snap's post market surge raised a decline in the session which came after meta's earnings

sparked fears of a broader slump for social media companies. now let's delve into the olympics. china will have the attention of a worldwide audience later friday with the opening ceremony of the 2022 winter a liv-ex. that gives president xi jinping his best chance to bolster china's image. we look at the major issues looming over the games. >> the 2008 summer olympics in beijing showcased china's rise as a global power. 14 years later, the winter games are happening in the same city, but a different world, one where a pandemic is raging and tensions between china and the west are worsening. fresh outbreaks continue to challenge china's covid zero strategy. for the games, that means confining the movements of athletes and other participants inside a bubble, isolated from the public. those unvaccinated will have to

quarantine for 21 days before heading to venues. like japan's summer olympics, there won't be any foreign spectators as locals can't buy tickets to watch. the winter games are also at the center of international pressure on china over human rights. the u.s. and several allies won't send official delegations, although their athletes are still competing. beijing has slammed washington, saying it will pay a price for the diplomatic boycott. sponsors also face risk. u.s. lawmakers and human rights groups have been urging them to pull out, but doing so would offend china and its massive consumer market. even as the challenges grow, president xi jinping is promising a simple, safe, and splendid winter olympics, hoping to seize an opportunity to again project china's strength and confidence to the world.

paul: a look at some of the issues looming over the beijing olympics. we will get more insights on china's athletic ambitions from the author of the book "sporting superpower" mark dreyer and count to the return of hong kong markets from the lunar new year holiday. the open in hong kong in just over an hour's time. this is bloomberg. ♪

paul: we are awaiting headlines from the reserve bank of australia's quarterly statement of monetary policy. we should have those headlines at any moment. we have heard from the rba office, the first meeting of the year on tuesday was surprisingly dovish to many. we had expected the end of qe. the rate state on hold at 1/10 of 1%. the commentary suggests he was not willing to bring forward the path of tightening in australia.

he was waiting to see more action on the wage increase, did not see inflation too much of a concern in the meantime. the lines from the quarterly statement dropping. the reserve bank of us truly is saying it will do what is needed to maintain low and stable inflation. what we are waiting for his some sort of commentary on the growth and inflation outlook. those lines slow to arrive. we are not seeing movement in the aussie dollar, a little higher at 71.43. the rba saying it is too early to conclude inflation as sustainably hitting target. the trend mean, the cpi number the rba watches, still above the midpoint of its target range. the rba saying the board is prepared to be patient. too early to conclude that inflation is sustainably and target. not getting too much information from the rba at the moment. let's get over to kathleen hays and talk about the ecb and bank

of england. they were sending a more hawkish than expected signal. our bloomberg global economics and policy editor kathleen hays was watching what they said. the ecb, a hawkish hold. what did they say? kathleen: hawkish indeed. what a shift. last year, eurozone inflation started rising. christine lagarde really pushed back. she was asked about a rate hike in 2022, she said no, not at least until 2023. today after the policy decision, which was to hold things steady, she was at a press conference when she was asked a couple times about a rate hike in 2022. she did not rule it out. she went on to say that they are watching nation closely. inflation in the eurozone area up to 5.1%, well above the

target. it is definitely on a bit of a tear. she said risks to the inflation outlook are tilted to the upside, particularly in the near term. let's look at what she said when she noted that the march and june meetings will be critical in determining the ecb's next move. >> what i'm saying here now is that, come march, when we have additional data, when we have been able to integrate in our analytical work the numbers that we have received in the last few days, we will be in a position to make a thorough assessment on the basis of data. and i cannot prejudge what that will be. kathleen: the markets are now pricing in 43 basis points. they are on the road to saying we think the ecb will do two

rate hikes this year. expectations have changed so very quickly. bank of america today saying they expect a rate hike in september and in december. jp morgan not quite as aggressive, but they expect lift off by december. watch inflation. christine lagarde said they will watch it closely. if there is a sign of inflation starting to peek and turned back -- peak and turn back, we will see if she turns the door open wider. shery: the bank of england are leading the charge on inflation. kathleen: in a way, with the meeting today where the bank of england did their 25 basis point rate hike -- that was telegraphed. there was a vote. four out of nine wanted a 50 basis point rate hike, out in front of not only the ecb, but in front of fed reserve as well.

if you see what's going on with inflation in the u.k., you can see why andrew bailey and his colleagues are continuing to be ready to move hard. 5.4%, highest rate of inflation since 1992. energy prices rising. the u.k. government today unveiling a program, $1.2 billion to help british people pay high-energy bills. that is one of the reasons these high energy prices, the boe raised its forecast for peak inflation. they expect by the middle of the year, april, to 7.2 pipe percent. -- to 7.25%. they will start reducing holdings of government bonds. they will completely work down their corporate bond holdings, get them to zero by next year. they are moving differently

towards getting that inflation rate solved. andrew bailey also said today -- he was against the 50 basis point rate hike. he think they should move in more measured 25 basis point hikes. shery: let's listen to the governor directly, andrew bailey giving his insights with bloomberg's francine lacqua. andrew: i think it is likely we will raise rates again. it is more likely than not. when i say that, don't over interpret it. there are good reasons, and our report suggests we will see inflation come off. we will see demand growth start to weaken. that particularly depending on the energy price, we might see something faster and better. there is a lot of uncertainty. that for me is the key point. it is a question of saying, i

think it makes sense to move at a step of 25 basis points. francine: the market is pricing an interest rates at 1% by may. are they right? andrew: we may move by 25. we are going to take stock. i don't have any number in my head for march or may, so we will take stock. you have to form of io based on what you are observing in terms of the economy -- form a view based on what you are observing in terms of the economy. we will take another view in march. francine: of course. the balance sheet is set -- set to be smaller. do you have an idea where the terminal size would be?

andrew: we don't in the sense that we don't have a figure. we have no real experience on this front. we will have to find our way. we are talking about the steady state level of central bank reserves on the system. there are two bookmarks. there is what it is today, a steady state. there is before the financial crisis, before we did the quantitative easing path where it was very low. critically it was low from a financial stability point of view. we changed liquidity regulation for banks. banks have a greater demand for reserves on that basis, so it is clearly higher. paul: bank of england governor andrew bailey speaking with bloomberg. we got more news from the bank of us trillion's quarterly

statement on -- of australia's quarterly statement on monetary policy. the rba seeing gdp growth at 2% into 2024. wage growth .25%. the inflation gauge still within the reserve bank of australia's target band of 2% to 3%. the bank say in the price rises could be reversed as supply chain issues are resolved and the labor markets unserved. uncertainties surrounding the inflation outlook according to the rba. a conservative statement. we are not seeing a great deal of movement in the aussie dollar. modest gains. the yield on the 10 year, not much changed. 195 at the moment. let's get to vonnie quinn for the first word headlines. vonnie: president biden says a major terrorist threat has been eliminated during a u.s. raid in

northwest syria. officials say an islamic state leader was killed during the assault after he detonated a suicide bomb as u.s. forces closed in. he took over as leader of the terrorist organization in 2019 and u.s. intelligence says they have been tracking him for months. pres. biden: operating on my orders, the united states military forces successfully removed a major terrorist threat to the world, a global leader of isis. vonnie: the u.s. securities and exchange commission sent a policy response to the -- said a policy response to the meme stock mania is coming next week. chair gary gensler says the changes will deal with issues raised by last year's market frenzy, including shortening the time it takes to settle stock trades.

>> it is about the plumbing of the stock market, what is called clearing and settling, and how we can take risk out of the system. also last year, the retail public found they were foreclosed from trading. vonnie: the president of the international elliptic committee played down -- olympic committee played down concerns about a tennis player from shanghai, saying she can move freely -- she can move freely throughout the country. critics claim the ioc is covering up for china to bolster its bottom line. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: coming up, we discussed china's quest to draw business, political, and economic threads

together under the umbrella of the olympics. that is with china sports insider mark dreyer. this is bloomberg. ♪

paul: despite the cold shoulder from some nations, a covid cautious opening ceremony is set to go at the beijing national stadium friday night.

some world leaders are taking advantage of the event for their own political power plays. bloomberg's kurumi mori is inside the bubble at the chinese capital. what does the opening ceremony mean to china? kurumi: president xi jinping will use this chance to boost china's image. it is a big day for him. he has been surprisingly hands-on, making decisions around the game. inspecting the closets inside the athlete's village. he is taking his reputation on making sure the games will be a success. russian president putin will be the most high-profile attendee there. he will be attending the opening ceremony at the invitation of president xi. the u.s., u.k. and australia not sending officials. japan also said it won't. earlier this week i saw at the

press center the tokyo 2020 president, technically a government official. although they are part of the u.s. led diplomatic boycott, some representatives may may be here in beijing -- representatives may be here in beijing. shery: just before you came on the air, you are actually wearing your mask. tell us about what the environment is like inside olympic bubble. kurumi: the covid guidelines here are in full effect. there is nobody around me, but i have some beijing staff asked me if i have my mask. indeed i do, a kn95. there are signs all over the place saying you need these types of masks or the equivalent. the covid bubble is completely sealed. it is obvious as soon as you

step off the plane that you are now in the olympic bubble. every airport worker i made contact with was protected. i did not see a single phase until i got to my quarantine hotel where i will be staying for the next couple weeks. when i got there, what i saw was a big fence surrounding it. shery: bloomberg's kurumi mori with the latest from beijing. let's bring in our next guest, mark dreyer, the author of "sporting superpower," which looks at how china changed from one olympics to the next. we just heard from kurumi about the situation inside the olympic bubble with the ongoing pandemic, not to mention the diplomatic boycott. how will beijing come out on the others of the games? mark: in terms of success of beijing, it is looking at three things.

covid is front and center, as mentioned. if they can restrict the number of cases inside the bubble, as long as there is not cross infection in that closed loop system, that can be considered a win for the chinese authorities. the second is getting out of these games with no large big scandal. there will be awkward press conferences where athletes are asked about things they are not comfortable talking with, but there have not been many opportunities for journalists to grill them on more sensitive matters. we have seen some fairly exaggerated headlines in my point of view in terms of what may happen from the chinese authorities. as long as something does not escalate to an international incident, that will be considered a success. and finally a decent showing in the medals. president xi says he does not care how many gold medals china wins.

china is not yet a winter sports powerhouse. it hopes to be in one or two olympics' time. as long as it does pretty well and gets some gold medals, i think they will be happy. shery: how important is the opening ceremony tonight in terms of the political game china is playing? mark: when you look at the sports industry here, it is how you can't separate the three strands of politics, business, and sport. on one hand, the olympics is one of the biggest sporting events in the world, but it is a huge political occasion, especially for china. we have seen that in 2008 and again in 2022. everything will be meticulously planned. we had rehearsals not quite on a daily basis, but hearing the

fireworks late at night in beijing over the past few days.. it is bound to be a spectacular occasion. the chinese put on a very good show. how would hopes to project itself and how that is received will be quite different both for its domestic audience and global audience as well. paul: in terms of global involvement, how have international brands approached sponsorship of these olympics? mark: it's been a really tricky situation for all the brands, particularly the 13 top olympic sponsors. because of the geopolitical conversation, they have taken a tactic of trying to keep their head down and out of trouble. coca-cola for example, one of the big sponsors, they have been pushing their year of the tiger branding instead of olympic

sponsorship. the olympic rings have almost been hidden from sight, such is the heat they have been getting. for a lot of the sponsors, they are just trying to get through these games without getting too many more hits. it can move to the next olympic cycle. they focus on the athletes and how they don't have a say in where each game is held. for the sponsors, they will probably take a long hard look at the end of their sponsorship deals and wonder, is this hassle worth it? paul: has this opened the door for more domestic chinese companies to get more exposure? mark: i think it has absolutely. we have seen chinese president xi jinping in 2017, when he

first visited the site, he was wearing a chinese sportswear clothing company. that is significant. how often do you see a political teacher -- a political leader of his stature wearing this clothing? he is saying we are building our own sports economy here and will have chinese brands front and center. global brands are keeping their heads down. the chinese brands will be able to jump on those moments of medal success. there will be plenty of chinese successes to celebrate. sponsors can get out with some social media and feel-good campaigns to capitalize on the positive momentum created on the sporting field of play. i would expect to see that. paul: mark dreyer, founder and editor of china sports insider.

hong kong reopens after three volatile days of global markets. we will get a preview of what to expect. this is bloomberg. ♪

shery: just over half an hour until hong kong markets reopen after a three-day break. let's bring in david ingles for a preview.

when south korea came back, it was easy because we saw this rally. but hong kong is coming back after this downside pressure and a lot of volatility. what are you watching? david: could have been better, i guess. interesting you ask given the timing of where we are across global equity markets. in terms of price and when you look at the processes -- at the proxies and some of these etf's, we are still slightly higher than when the hong kong last traded on monday. we might get a pop at the open. within this market we are also attracting a lot of sectors, tech. i am watching energy stocks in particular, simply on the back of this rapid rise in oil prices. massive names, a couple names to

watch. paul: not only chinese stocks, how do they fare after the lunar new year holiday, can we use history as a guide to know what to expect when china reopens? david: i wish we could. we can simply look back. i would say on normal, regular years we see markets come out ot -- out of the games quite strongly. the last two iterations of the two weeks after the lunar new year have been at normal. there was the pandemic shift in 2020 and 2021. that was when this regulatory story really came front and center earnestly. when you look at the returns, the past two years negative, the three years before that were positive.

if we were to fancy a guess, the past five years on average, we see a pop, who knows what we will see? paul: and we will have the hong kong open in the next hour when we get to the bloomberg china market open. stay tuned for that. this is bloomberg. ♪

david: good morning from the asia-pacific. welcome to the china open. i'm david ingles with yvonne man. yvonne: amazon topping facebook parent meta's historical wipeout of $251 billion. a so presently hawkish ecb and -- a