>> very good morning. we are counting down to asia's major market open. >> welcome to "daybreak asia". our top stories is our. asian stocks set for a cautious start as rate hikes role with traders waiting for china to come back online after a weeklong holiday. oil prices continue their march upward to a fresh seven-year high. it has underestimated the

indicators signaling the rally will extend. an exclusive interview with the coo of the machinery maker that discusses the business impact of covid in the supply chain crunch. >> we do see a lower start to the cash trading in sydney. a little bit of weakness. 6/10 of 1% gain that we finished off with on friday. we are watching hospitality, tourism, travel related stocks with these plans and expectations in australia will reopen the borders to international tourists as soon potentially the next few weeks or by the end of february according to some reports. tourists have been not allowed to visit australia for almost two years as a result of the lockdown from the pandemic. we are watching the 10 year yield. looking ahead at the start of trading in seoul in tokyo. we are seeing movements when it comes to trading for nikkei futures in chicago.

tenths of one of the first stocks to start trading and one that we are watching fall i to buy a present. first quarter trading update. as a result we are seeing 2.7% downside when it comes to their trading at the moment. shery: when it comes to u.s. futures, we continue to see a little bit of pressure for the nasa 100 futures after a volatile week. investors started to divest the latest earnings. u.s. stocks did rise for a second consecutive week. we are waiting for those cpi numbers and it's all about inflation in the u.s., as well as many parts of the world. we are seeing crude under pressure but above those 92 dollar barrel. a fresh seven-year high on supply concerns. haidi: china mistake volatile

market. a look at what they expect. how do we see the reopening? >> we are expecting mild gains when china comes back after that weeklong holiday, the support primarily will come after hong kong stocks had a very good day on friday with easing concerns around the sector that has been in the sight of regulators. there were some positive comments from the cybersecurity watchdog in china that help them in hong kong. you also had banks rising. so we expect chinese stocks to open within some mild gains. but there are still headwinds for that market.

a property sector buckling under debt. shery: any time we have this optimism that perhaps we might see that rebound in chinese stocks, especially given that we are now seeing much cheaper valuations, we keep getting headlines on what is a regulatory concern or the property sector not doing well. tell us a little bit about what should traders be watching this week as the markets reopen? >> that's right. so far that monetary policy that we've seen in china hasn't done a lot to the stocks. so what investors and traders are looking for are more steps to restore confidence, such as stronger fiscal spending, further credit loosening. in one thing in particular they are going to look for it today is how china's central bank will management liquidity.

after customarily it put a lot of liquidity in the market in the normal practice is to withdraw some of that liquidity ingested before the holiday. but what the market is looking for is perhaps a partial withdrawal to keep supporting assets, given the dovish monitoring. so that will be a key for markets today. shery: cross asset asian editor, we do want to delve into those chinese numbers. the first of all, let's turn to the u.s. because we have the january jobs numbers blowing past forecasts despite record covid cases. the rest of the fed can go full speed on rate hikes. our bloomberg economic policy editor kathleen hays is here with the latest. many economists, including at the white house, expect that the january surge would -- and omicron cases -- would hurt the numbers, they did not. kathleen: it's like they were

setting us up, don't blame the white house, it will be the omicron cases not a weak economy. they too were probably taken offguard to be estimates and ending up with a healthy number. so let's start with this, 406 east 7000 new jobs added in the month of january. and what i want to show you is how much that beat the estimates. the consensus forecast on our bloomberg survey, the blue line, up 125,000. that white bar is therefore to 67,000. and there was even below forecast in the survey for a drop of 400,000 jobs. the highest number for the month was 250, much stronger. let's look at the revisions because this is a big part of the story. what you are looking at, the blue line shows you the actual number, the white line, what it was, what is now. so the two bars just in from the right-hand side, one is november.

it was first reported that blue line with a gain of 210,000. now we see it was 647,000, three times as much. december had a gain of 190 9000, the second line in. the white bar is the actual number after. 510,000. there are 709,000 more people working at the end of the year than the surveys had picked up. let's go back and look at -- omicron was so strong. the omicron variant, the red bar shows where it peaked in january. there were 6 million people who were unable to work. maybe their business temporarily shut down, whatever it was in as many as 80% were people who were not -- would not be counted as part of payroll. what instead, businesses are retaining workers and hiring more workers because the economy is strong, labor market is strong and very tight at this point. that's why average hourly

earnings grew five point 7% year-over-year in january, up from 4.9% the month before. that is another reason why the former treasury secretary are convinced rate hikes are coming and they may be much more aggressive. larry: have to be prepared for a rate hike every meeting, and they have to be prepared for the possibility that as the inflation process continues, we might need to have meetings with more than a single 25 basis point rate hike. kathleen: larry summers alluding to the march increase might be 50 basis points. the fed funds futures futures are telling us that it's now about 50-50. that bet on the 50 basis points moving up. haidi: china is seeing the silver lining as central banks around the world are tightening. kathleen: the argument is, look,

if the central bank in western central banks are getting ready to tighten policy, that will slow down the economy and commodities. commodities like oil, and that will help bring down china's factory gate inflation. it was nearly 9% year-over-year. and they are hoping that it will come down so they can continue to move ahead and provide more stimulus to the chinese economy. haidi: our global economics and policy editor kathleen hays. that's look at the other part of the inflation piece. the red hot oil rally is a key concern for price pressures. every indicator pointing to higher oil pressures. we saw prices drop to a high above $92 a barrel. su keenan has been watching all of this play out. what are traders saying that demand is being underestimated? >> that tends to be the view, and we have saudi arabia state

owned oil companies saying that they believe we will very soon returned to pre-pandemic demand levels. the iea international energy agency saying, we are still one million barrels a day lower than we were in 2019. so there is a disparity there. so when you look to the market there is no disparity, let's drop it into the bloomberg. this market is as bullish as it can get. everything it's telling us is that prices are going higher from here and that's because there's a perception that the market is very tight. particularly when we look at the options that are being taken on much higher prices. then you layer on the fact that diesel, if you will help power the global economy, has surged the demand for that. the highest we have seen in three decades this time of year. a lot of that having to do with the cold snap in the u.s., but even so, check out year to date prices for both brent crude and

west texas intermediate. we are already up 20% even though it was the beginning of the second month of the year. and while it was mentioned at the top of the hour that we are seeing west texas prices weaken just a bit as asian trading gets underway, we are still above $92 a barrel real -- a barrel. we closed above $93 for brent. that market is just running away from here. layer on some product -- supply outages from libya to ecuador to nigeria that will limit what opec-plus can do in terms of meeting the supply hikes they have agreed to each month. layer on the geopolitical concerns, whether it be russia, ukraine or iran's nuclear conflict. and then you have the facts that you have cold weather all across the north american eastern seaboard right now. and that is just putting a norma's kick in the pants for prices as we kick off the week.

>> no wonder that aramco is raising prices to china and other key customers. in this coming at a time a we hear that china may need to replenish its stockpile. su: this is a very bullish company. saudi arabia care -- clearly taking advantage of the fact that brent crude is up 93, up, 90 five. what they are doing is a larger state owned firm saudi aramco announced that they are increasing prices to asia for march, 60% of their shipments go to asia. there are also increasing the other customers in europe and the u.s. this comes as the largest independent oil creditor spoke on a podcast this week and said he believes all eyes will be on china right now because following lunar new year he believes the stage is set for this stage to boost its stockpiles. they say that they really

haven't taken the foot off the pedal and china. higher prices do not give you a better demand. so that if they boost their stockpiles and traders and investors pile in with bullish stocks, you could see prices go higher. let's drop into the bloomberg one more time because you see the number up to $200 brent crude, quadrupling from where they were at the end of last year. shery: su keenan with the latest on the oil markets. let's get to vonnie quinn. vonnie: u.s. secretary of state antony blinken and french foreign ministers held talks about ukraine on sunday ahead of emmanuel macron's trip to moscow and kiev. they discussed moves to strengthen nato and efforts to deter russia from invading. the french president said he was confident about reaching a deal to avoid war. he also said concessions may have to be made to russia. boris johnson's removal from

office is being called inevitable by a member of the conservative party. charles says he wants johnson to have some agency in his departure. the prime minister faces a flurry about it over reports of downing street parties during lockdowns. the sunday times says johnson will hold a no-confidence vote soon. china has reported 10 new covid infections inside the olympics for a risk of the infection counts on sunday that are almost a quarter of the level 24 hours prior when the pickup was awarded with no personnel arriving to the games. aging has isolated nearly 3000 athletes and participant -- beijing has isolated nearly 3000 athletes and participants. global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn, this is bloomberg. haidi: still ahead, the return to the roots and medical

equipment. we reached new pandemic consumer trends. coming up next, the global head of macro research joins us to talk through the fed's outlook. we get the latest of them raising bets on a 50 races point hike in march. this is bloomberg. ♪

>> every single part of this number was solid. >> it's a huge surprise. >> we don't see the expected omicron impact.

>> the economy is shaking out this pandemic and moving forward. >> this is the labor market really screeching -- screaming, i should say, and that will continue to keep the pressure on the fed. >> it tells you that the fed has fallen further behind the curve. >> there is no ambiguity, the -- >> the market is pricing this acceleration and near-term tightening. haidi: some guests reacting to the unexpected strengthen the u.s. labor market. sticking with the jobs report, higher pressure -- higher rates adding more pressure. inflation factors that they need to consider. let's get to the head of macro research. there are expectations based in for that march meeting. does the strength that we saw, plus the expectations of a former rise in the cpi number this week add to the argument

that they need to be even more aggressive? >> first, i would go back to that strong number while certainly the raw data did show that the economy shook off omicron muore than i think many had feared. it was a truly unfortunate time for a regularly scheduled data recalibration -- recalibration by the bls. what we don't know looking at that data is, is this strong job -- job growth a trend? is it showing a trend or is it just that we overcorrected for omicron, and that is the reason we are seeing this strong growth? so from our perspective it saying we are more neutral on this. all that said, it does put the fed in a tricky spot in terms of what it can do as its managing between -- it's got a dual mandate. not by that we mean not just price stability -- price,

stability and unemployment, but trying to real -- manage the real economy and a financial economy that quivers every time we talk about great prices. haidi: the distortions talk about a broader problem. we are expecting more than a half of the global economy to have tight monetary conditions according to j.p. morgan. how much risk is there of a policy overstepped given all of the dislocations that we know this covid related slowdown? karen: that's the challenge. if you look at the real economy in the u.s., we see not all growth in q4 was 12% year-over-year. with a feds fun rate of 0%. that is the largest gap we have seen between those two figures since the 1950's. the inflation coming on the real economy where goods, services and the whims we live on a day-to-day basis is driven in

large part by the supply chain snarls and policies coming out of covid, which is a step removed from the fed's mandate. on the other hand, whenever we see a discussion about rates rising, for example if we look to january, the vix popped over 30 on the 25th of january. we have on the one hand a need for an aggressive rate rise, and on the other hand, the smallest pin possible to print the balloon and financial markets. i think that puts the fed in a tricky position. shery: they tried to be transparent to tell the markets where they are headed, but i wonder if that risks causing more uncertainty and volatility in the market because traders are getting ahead of what the fed will do at the same time. karen: that's a great point. we look at the transparency, back in the greenspan days everyone would look at the tv to see how fat his portfolio was to see which direction rates were

moving in. today, we have so much transparency that it's almost like a hall of mirrors. the fed will guess what the market is doing. at some point we are a little concerned that the markets won't carry the water for the fed anymore and that transparency will actually create more volatility than one would've thought with a policy like that. shery: in an economy like china where they seem to be going against the global trend of tightening and instead they are signaling more easing in terms of monetary and fiscal policy, what do you keep an ion for potential risks? karen: they came out of the pandemic with a growth trajectory that is notably flatter and going into it. some of this is part of the policy. when they talk about a common prosperity and quality growth, those are all signals that were

no longer looking at a china that is trying to hit a high water mike on growth and much more one that is interested in distribution of those gains, the all shaped economy. what's happening in the property market is a bit tricky. the growth rates at 6% aren't attainable in a world where the construction sector is contracting. i think there is a real question about how policy manages that sector, which they were all distracted with the olympics and they are experiencing pressure and how that plays into growth coming into the next year. we continue to watch for evergrande headlines and other developers. karen harris, great to have you with us. you can get a round up of the stories that you need to know to get all of the top stories in today's edition of daybreak. bloomberg's subscribers go to dayb on your terminal and available on your mobile and

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shery: we are tracking the fallout of the global supply chain crunch. manufacturers across different industries in the u.s. are warning the production restraints continue to be disruptive. the plight of the company have been reds and aiding, suggesting that supply bottlenecks will likely persist well into the second half of the year. in italy, employers are flagging the impact of supply chain snacks and inflation warnings that economic growth is at serious risk. the output declined by an estimated 1.3% in january. in a shareholder vote on aberdeen's plan to acquire the

interactive investor in the $2 billion deal has been delayed because of an international paper shortage. it will take place in mid-march with the edinburgh base manager sending out legally required paper versions of the documents. >> -- revisiting global food prices that jumped forward, further adding to the cost of living for consumers. the index rose 1.1%, pushed up by vegetable oils and dairy in its edging closer to 2011 and the unfavorable weather for crops on the fallout from an energy crisis threatens to keep prices high. bloomberg terminal users can read more about the stories in our newsletters. up next, president biden speaks with his french counterpart about how to respond to russia's military buildup on the ukrainian border.

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>> will danger for a russian invasion, but it makes it even more important to look for the political -- haidi: the secretary speaking to bloomberg about the situation on ukraine's border. the u.s. discusses joint efforts to strengthen nato's eastern flank as president emmanuel macron prepares to travel to moscow and kiev. for more let's bring in our bloomberg get it or who has been looking out all of this. there were these reports that

they see russia's buildup at 70% of a full-scale invasion of ukraine. what are we hearing on that? >> the emphasis over the weekend has actually been more on diplomacy, at least in the public around. those numbers and also the reported risk of tens and thousands of desks -- deaths that was a full-scale war that was not confirmed by jake sullivan was president biden's national security advisor. it took more of the tone that the ministration has had for some time that russia is trying to put itself into a position to be ready to threaten ukraine at any time, but the u.s. is inserted of saying, here is the day when it will happen. we should remember that russia has also denied that it plans to invade ukraine. there were these talks today, there was a phone call between

president biden and president macron from france, and tomorrow it's german chancellor is arriving in washington for talks with biden, so that's kind of the landscape we have here for the start of the week. shery: we continue to see these very incremental changes and developments around the tensions in ukraine, what should we be looking out for this week? tony: that's really the question. how much of the diplomacy actually produces any progress? one thing to watch is emmanuel macron's visit to vladimir putin in moscow. he will also -- mccrone will also be going to kiev, the ukrainian capital. so i think there will be a lot of tea leaves to read from that, and then we will have to also see what kind of a stance biden takes, especially after this

undercurrent of criticism of germany stance rightly or wrongly on its response to the threat against ukraine. haidi: we've heard from president biden saying that if the worst-case scenario happens in the sanctions are put in place, it would be devastating on the russian economy, how buffered is russia this time around from the potential sanctions? tony: we heard today from the deputy treasury secretary in washington who is saying that these sanctions would hit -- would hit places that hurt for russia and for putin and his allies, if you like, which i think is sort of a code for oligarchs, by striking at their financial power.

basically their ability to do transactions in the west and places like london among others, but also in the u.s., and in dollars. so that is something that has become quite clear that this is part of the threat of sanctions. now, how much that would hit russia economically is another question. there have been sanctions in place for some time after 2014 when russia took crimea from ukraine and, yes, they have had some effect, but of course as we see, that doesn't prevent russia from mounting significant military buildup. shery: bloomberg's editor tony with the latest on the russia/ukraine tension. this gets a vonnie quinn with the first word headlines. vonnie: canada's capital

declared a state of emergency as there are protests against vaccine mandates. in a statement, the ottawa mayor said the demonstrations threatened the safety of residents. the protests started in reaction to canadian and u.s. laws for people crossing the borders to be fully vaccinated. hundreds of trucks continue to occupy ottawa's downtown area. australia is planning to open its borders to international tourist the soonest possible according to the minister. karen andrews made the statement following a report that says tourist would be back in to the country february. the government is gathering more information and could be close to a decision. australia closed its borders to foreign travelers for almost two years. china's top economic planning body says inflation will remain modest in 2022 due to monetary policy moves outside the country. the national reform commission expects china's inflation risks to swell this year as it impacts the covid -- as consumer and

producer prices are expected to rise. the rbi has postponed its review by a day as the nation mourns the death of the celebrated singer. the central bank will now start its three-day meeting on tuesday. meanwhile, this artists will be -- monday but stock exchanges will be --. they receive the country's highest civilian award for a career that spanned six decades. global news -- global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. shery: the beijing winter olympics have gotten off to a more muted start. we still had the summer games in 2008 as covid restrictions and what the u.s. diplomatic boycott highlights more political undertones at the event. let's bring in our chief north

asian correspondent stephen engle. what are we seeing so far in the games? what's your take away from the messaging? stephen: obviously these games are happening at unprecedented times. you have the quote -- the covid pandemic and the strategy in china that put all the athletes and staff inside this closed-loop bubble between the venues and the accommodations and transportation cut off from the rest of the nation. all the world sort of watches on in the stands are fairly empty. a fairly different scenario than what i saw in 2008 when i covered the beijing olympics summer games. it was much more of a party atmosphere. the political undertones with xi jinping and vladimir putin standing side-by-side, symbolically, as well as diplomatically as the u.s. led diplomatic boycott goes on and 21 your world leaders from non-

democratic countries joined in on the festivities. now perhaps we can get onto the actual games and see the great downhill skiing. and we could still have business implications and the political ramifications, which china is acknowledging as well. one of the final torchbearers at the opening ceremony was a weaker athlete, so they are addressing those issues. in china wants to portray a peaceful, sport loving nation to the world. the world has bifurcated between us and them, them and us in every other direction. haidi: this is not just amid the pandemic, but covid zero. what we know about this closed-loop system? is it working? stephen: it will keep going at it. one could say there was 360 three cases within the

closed-loop since the day that they started scoring and tracking that data january 23. three hundred 63 cases, athletes, journalists, staff all included. they have 10 reported cases that were reported yesterday, so i'm assuming that was from saturday's tally in addition to 45 new infections on friday, day one. so they are going to keep this closed-loop and hopefully contain it. whether you say it successful or futile, they will keep at it over the course of the next two and a half weeks as they continue with the games. haidi: our chief north asian -- shery: our chief north asian correspondent for us. we will speak with the coo of olympus, the company strategist and how it's navigating the chip supply crunch and that exclusive conversation is just ahead. this is bloomberg. ♪

shery: japanese markets setting up for trading with nikkei futures slightly pointing higher at the moment. this as the japanese yen is considerably weaker against the u.s. dollar pass that 115th level. of course we are watching those jgb's because we could see an unscheduled bond purchase

operation either the bank of japan in order to end that speculation about monetary policy tightening. this given in the previous session that we have seen jgb yields rise to the six-year highs given the global bond rout speculation that it could be ending up joining the developed market for monetary policy being stopped throughout the bond markets. haidi: here is the top story that we are watching out of japan. announcing changes to the reorganization plan that the investors relations as scheduled for monday and tuesday. looking to get details on options to revise its revamp. the news reporting that they are making final arrangements to sell hotels and other assets in japan, singapore and the world fund and it's a deal that could be worth $1.3 billion. olympus boosted its guidance for the full year to just under 8.5 -- ¥8.5 billion.

shery: our next guest runs the operations. they ran it before becoming known for it, but have since returned to the roots of medical equipment. joining us as the coo at olympus. it's great to have you with us. thank you for your time. >> thank you for having me. shery: when we think about olympus, we think about your cameras and everything you can do with them. at the same time, you seem to be refocusing on therapeutic surgical devices, why? >> is a position that the company took a decade ago and the picture would be in the medical devices. we all know what happen with the camera devices and it came into the market. i think that the company people did very well at the beginning of the last decade. by now, i think pretty much all of our businesses medical devices. shery: we have heard that you

could be thinking into selling the science business where you make your microscopes and so forth. why is that and how does that fit into your overall strategy? >> the strategy of the company is clearly to become a leader in the health care sector. in our division, what we call scientific solution divisions, it's an area where we believe that they will do better if they are independent from a company that fundamentally once the focus on the medical side. i think this is a win-win for both and for the company that will stay at olympus. we will be able to focus our investments in the medical sector. at the same time, the new company will be -- and managing independent way will be able to pursue it and develop their own tactics and strategy and investment. and i think for both of us it would be a great future. shery: when will that happen?

nacho: the company will do it on the first of april. it will act as an independent company. haidi: you lead a number of deals in the therapeutic's business over the past few years. other missing pieces when it comes to that part of the business that you would like to fill in for m&a or other sorts of deals? nacho: there are always missing pieces. we have a complete portfolio and there are always missing pieces that we cannot complement the strategy. we have been very active in the last 24 months as we close a number of deals out for us was something we were not used to doing. but part of our strategy was to embrace more activity. our growth expectations are pretty high, and the growth expectations will grow.

so we will continue complementing through the right m&a, our proposal. haidi: you set a goal of 20% by fiscal 2023, what happens beyond that? on the others of the pandemic, given that competitors are at around 25%? nacho: you pay it -- some of our competitors are on that 25%. i think for us, we made the promise to come around 11% or 12% to 20% to be more on the right mark. we are going to accomplish that. from there our expectation is to continue year-over-year. at the same time, we have to make sure that we do the right investment and secure our future. this is not only about property, it's about continuous profitable growth. our plan is to improve

profitability, but take into account that we need to continue investments. shery: what are you excited about in your product lineup? nacho: say again. shery: what are you excited about in your product lineup? nacho: we are excited about many things. we have a very extravagant pipeline coming up. i believe that our strategy that was presented today to the investors is -- by bringing products to the market that can make a medical difference. really something that is going to improve the life expectations of those. so i think in our pipeline there are a lot that will focus on that in bringing that added value. and we will continue doing that. shery: i was living in japan at

the time when olympus went through its accounting scandal and that really was huge and threatened a lot of the future for olympus. how much have things changed in terms of governance and transparency for the company since then? nacho: things have changed dramatically. i think that the company did a phenomenal job recovering from that. not only that, after the recovery we truly embraced the goal to become probably one of the best corporate organize companies in the world, not only in japan. we have been making changes continuously and in activities all over the world in order to prevent what happened and that more than a decade ago will never happen again. i'm really proud about what the company did and where we are today. haidi: when it comes to governance and asg has been pushed to the -- top of the list in japan increasingly over the last few years. if i was to ask you what the one

thing japan needs to change right now and what the most important thing would be, what comes to mind? nacho: obviously japan has been very low growth in the last year. i think that the japanese economy would require that companies really embrace this concept to become global. i think the world is a fantastic opportunity, but i think it's important that the japanese corporation really embrace that idea that we need to compete in the world. there are things that need to change. there are many other things we are proud of being the japanese corporation and being there for more than 100 years. but at the same time there are things that have to change. corporate and japan has to lead that change and bring the economy in japan up to that level. haidi: how has this coo coped

with the supply chain issues and which is to go disruptions we have seen out of the pandemic and what are the lessons learned for the future? nacho: the last few years has been a roller coaster. i think at first we learn a lot about contingency plans and we learn about the situation because the covid situation was a disruption of the supply chain. nowadays we are in a different situation and we are in this story of short chip semiconductors and supply chain and delays. i think that the world has become a more uncertain place. and i think that for any company what we need to do is to be able to lead without uncertainty. this is sometimes difficult for a japanese corporation that we like to plan ahead very well. i think we need to be a little

bit more creative in the way that we plan our supply chain and except that we are going to have to live with certain things. it does not mean we are not going to make it, it means that we are going to have to be more open and try different things. in our supply chain we are making changes in order to make sure it is better than it used to be. and we are also looking for alternatives in our products that whenever something is not available, we make changes so we can use different chips. i think the big learning here is that the world is a big and uncertain place and for companies that want to succeed, we have to start that way and be able to understand and nothing can be planned. shery: not even the macroeconomic picture, so how much is what's happening with the japanese yen that's very weak at that 115 level that

would affect the company like olympus? nacho: the largest part of our business in the u.s., this has been helpful for us for profitability in the u.s. business. but i thing altogether, we are a corporation and we are well distributed across the world so we would have natural hedging. but specifically for u.s. and dollar yen, it is something that has been pending over the last years. shery: that's olympus coo. really appreciate your time with us today. you could get more with our exclusive interview with the tokyo stock exchange president on tv that's available to all bloomberg terminal users. we continue for japan ahead to hear from leading names in japanese business monday at 8:40 a.m. tokyo time in bloomberg and bloomberg television. this is bloomberg.

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haidi: a quick check of the latest business flash headlines. acquisitions will become more difficult for the company. this ceo attributes that the reviews and increasing geopolitical concerns. just days ago germany's borders

to buy -- which would create the large -- the world's largest maker and chipmaking. they are planning to brace $7 billion for a new america's infrastructure fund. the firm will start fundraising in the coming months. in july, they raised almost $7 billion for a separate fund focus on communication, transport and waste management. sk telecom is teaming up with california-based aircraft maker jovi aviation's. the electric powered airplane can take off and land vertically. crews at a top speed of 200 miles per hour and has a range of 150 miles according to the company. shery: here are stocks we are watching. stocks could move after they reported that the u.s. and japan are close to an agreement that would partially remove tariffs

on japanese imports. watch cookout bank at 318 million shares -- watch cookout bank at 318 million shares. they set up a battery material unit in the u.s. the south korea and japan opens our next. this is bloomberg. ♪ rg. ♪

shery: welcome to daybreak asia. haidi: asia's major markets have opened for trade. asian stocks are set for a cautious start while bond yields extend their slide to traders expecting more than five fed rate hikes in 2022. china markets are due to reopen after a weeklong holiday. a surge of covid cases in hong

kong. oil prices continuing their march upward to a fresh seven-year high on signs demand is being underestimated. indicators are signaling this rally will go on. shery: japan and south korea coming online. take a look at where the nikkei and the topix are. energy and financials are gaining ground. this as w ti continues above the $90 a barrel level. we are seeing the japanese yen holding at the 115 level. we have to watch our jgb's. the 10 year yield is shooting up past the .2% level, which has been topped last week. we are seeing whether we will get the unscheduled bond purchase operation by the boj. we have seen yields rise up to the six year high with the ongoing global bond round and the speculation the boj will end up joining development market

peers in normalizing monetary policy. take a look at the kospi losing ground by half a percent. we are watching stocks including kcal bank because through entered 18 million shares will be available for trade after some stakeholders. we are seeing the kospi now consolidating after playing catch-up last week after returning from the lunar new year holiday. the korean yuan under pressure. cpi numbers coming in above the bok's target. haidi: we are seeing a mixed picture. we are seeing the leaders being the energy sector are given we have the extension of the oil rally. lots of traders saying we see the demand side being severely underestimated. the broader market falling by 4/10 of 1% we are seeing information technology materials tracking higher.

also watching the tourism and travel related stocks. we are hearing from the government on the back of a report that could see the return of international tourist into australia in a matter of weeks. we are seeing the likes of qantas up by a tenths of 1%. shery: it is really about the chinese markets reopening after the lunar new year. we saw the rally in hong kong stocks expected to trigger initial gains in shanghai and shenzhen peerless bring in a senior portfolio manager. really, every time we have this optimism about mainland stocks, we cannot help but get disappointed at times given the regulatory crackdown continues. we have headlines about the property sector. what are you watching at the reopen? >> i think we have seen markets stabilize a bit. we have seen quite a lot of activity. a lot of hedging going on around this fairly significant market

move. we have seen a reasonable did come through -- reasonable bid come through. a little bit of size ability for the start of today. shery: is it going to be another value play in the chinese markets? >> i think the backdrop is quite interesting. clearly rate expectations around the world have been very reset. we have seen a lot of expectations coming through the rate hike. it is important to remember these tailwinds to value we have seen over the last 12 months have only started to reverse what we have seen -- the headwinds we have seen over the last decade. we think that backdrop will continue to be one that is favorable. a lot of that is short-term. expectation around rates has already filtered into the market expectation. haidi: when you take a look at emerging asia, where you see the

opportunities balanced against the risk of more broadly most of the world starting to tighten monetary conditions this year? >> that is an interesting backdrop. we have china, which came out of the impact of the pandemic earlier and's into a policy where disturbing to ease while the rest of the world is starting to tighten. we are still quite optimistic. usually a rate hike and aiming cycle -- in tightening cycle would be negative for asia. as we see the impact on economic activity, that will be an offset to as we do see the rate start to increase and expectation started increase in asean, we think it will be significant. the pandemic has hit asia really hard. we are seeing that natural

immunity start to come through. that heard level. we think the reopening will continue. haidi: when it comes to some of the -- of vietnam, are there still opportunities are you looking at pricing being on the loftier side? >> in vietnam, it has been a market we have liked for some time. that has been a market that has done well. the unfortunate part is despite being a strong performer, the valuation started at a decent level and even though they have increased a little, earnings growth has offset that. it is not quite as easy as it used to be. we do still see a lot of opportunity in the market and we think the growth will be very strong. shery: just earlier, we had our guest from olympus talking about growth in japan having been some dude the last few years. can we see some opportunities

given the cyclical market desk cyclical recovery we are seeing? >> it is a market where we are think -- where we think there's a lot of stock specific. i japan, you had a inflation headwind for a long time should as the rest of the world becomes concerned about inflation, that has a positive tilt in japan. the global pickup obviously. there are a lot of cyclicals in japan and they start to benefit from that kid that is the book area -- that is the area we are most interested in. we are moving into these newer areas. whether it is in ev's or a lot of the sustainable energy areas. it is a space where japan stands up. we think there are a lot of companies that are starting to benefit from those trends. not exactly the first year companies people think about when they think of those trends but one where there is good money to be made because of the valuations. haidi: always great to have you

with us. let's get you caught up with the first word headlines. vonnie: japan is reportedly set to extend its covid measures in tokyo and other prefectures. a formal decision to come on thursday. tokyo reported over 17 and a half thousand cases on sunday, taking its three-day average to more than 18,000 daily infections. hong kong reported 340 two covid cases sunday for a second straight day of more than 300 locally transmitted infections. about 40% of cases were untraceable. health officials say the invisible transmission chain is in communities. further social distancing measures may be announced. candida's capital has declared a state of emergency as police

struggle to contain ongoing protests against vaccine mandates. in a statement, the ottawa mayor says the demonstrations pose a threat to the safety of residents are the protests started in a reaction to canadian and u.s. laws requiring truckers crossing the border to be fully vaccinated. boris johnson's removal from office is being called and other bull by a prominent member of the u.k. prime minister conservative party. in an interview, charles wilber says he wants johnson to have some agency and has departure. the prime minister faces a growing rebellion over reports of downing street parties during lockdown. the sunday times says johnson will hold a no-confidence vote soon. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. shery: still ahead, we will discuss the winter olympic --

china's ambition for leadership with the fintech council on foreign relations. up next, a key takeaway on the u.s. jobs report. as chinese markets get set to open. this is bloomberg. ♪

shery: the u.s. and france have discussed joint efforts to strengthen nato's eastern flank as french president emmanuel macron plans to travel to moscow and kiev. what are we seeing on the diplomatic front especially from nato countries? >> it seems that french president macron is at the center of things this week. the french president had a call with u.s. president joe biden yesterday. and also spoke with the prime minister of estonia. estonia is significant in this drama because it is one of the balkan countries that shares a border with russia. president macron is scheduled to be meeting with president putin today. we are hearing from the u.s. and national security advisor jake sullivan who went on the sunday shows and talked about the nord

stream 2 pipeline, which is not yet in service. that is the pipeline that would be taking gas from russia to germany. and is at the center of efforts to impose sanctions of russia -- sanctions on russia if it were to invade again. jake sullivan says there is not going to be gas flowing if russia invades. haidi: we seem to be hearing from both sides in terms of ukraine and the russians kind of playing down the level of excavation -- of escalation. >> it depends. from the u.s. and nato side, we are getting a steady stream of leaks and information about what might happen. the latest is a washington post story that ran over the weekend talking about the potential of

mass casualties, a huge number of refugees if russia were to invade. a top russian bull met has dismissed that as scaremongering. -- top russian diplomat has dismissed that as scaremongering. that said, we do know also from ukraine the ukrainians are saying there needs to be sanctions now. the west should be putting together a package of sanctions. the top official -- a top official it's up president zelensky told bloomberg news the sanctions package is needed now rather than delaying further. shery: we continue to see lots of rhetoric coming from all sides of the tensions. what should we be watching out for this week as we continue to watch these incremental

developments? >> i think it is fair to say it is highly unlikely we are going to see any military action this week or next week. the russians are loath to do anything to embarrass china during the winter olympics. i think it is safe to say there is a window of opportunity for diplomacy over these next few weeks. keeping watch today is president macron meeting with president putin and we will see where it goes from there. haidi: the latest on the geopolitical tensions and one of the key factors weighing on oil markets. traders are betting bring could reach as high as 200 bucks a barrel. let's in david. what are we seeing here as -- seeing here in terms of market expectations? david: good morning. it is very tight. there are lots of reasons why.

there are lots of reasons why traders are betting they could move higher from here whether that is geopolitics, you look at this current supply in the markets. there does not seem to be a solace in any asset classes. what you are looking at is the earlier month contract is trading at a dollar more than the next months contract all the way up until the next six or seven months. we talked about the story of aramco raising prices to their buyers. buyers are willing to pay those prices and willing to pay a premium to get supplies earlier. you will to the brent markets and to your point on what we are seeing in the options market. open interest on strike rises of 100 to 125 by the end of this year are combined at about

100,000 contracts. that has gone up several times in the last couple weeks. that also applies to a lesser extent on oil at 150. this is rent at 200 should prices are far away with the best are strains of five -- to pile up should will wake -- you will make money once you start moving in that direction. certainly want to watch as we get underway. shery: david is back with us in a few minutes. the china reopen will be exciting after the lunar new year holiday. still ahead, we will hear exclusively from the olympus coo about the strategy to plays itself as a leader in the health care sector. this is bloomberg. ♪

haidi: a quick check of the latest headlines. i company reportedly making final arrangements to sell assets to a singaporean wealth fund. the company is planning to sell 30 properties including flagship hotels in deal worth $1.3 billion. they said last year it will divest certain assets as part of its medium-term business plan. sources tell us peloton is evaluating potential takeover options after it sure plunge made in a targets acquisition. the company is said to be working on -- working with an advisor to explore options. we were told it may not lead to a transaction. reports suggested like he could be among potential suitors. shares surged in after hours

trades thursday. ariel ridesharing services in korea. ventures led electric airplane can take off and land vertically. it has a range of 150 miles. there has been no date set for when the air taxis might be available to the public. a asset-management army is planning to raise $7 billion for a new america's infrastructure fund. the firm is said to be starting formal -- formal fundraising in the coming months. this was way beyond the $5 billion target. a taiwan-based company says -- will become more difficult for the company. the ceo attributes that to a more antitrust issues and increased a little concerns.

germany's deal that would have credit the world's largest silicon wafer is used in chip making. shery: in the u.s., it was all about the jobs report with u.s. employees extending a hiring spree last month. with jobs growth blowing past estimates, the labor secretary marty walsh told jonathan ferro the labor market is in a different position from a few months ago. >> the report for the month of january was a solid report. i think underlying what it is telling us is we are in different position there we were in march, april, may, june of 2020. we are seeing workplaces and workers learning to live with the pandemic and address. -- and adjust. the adjustments certainly is great to see kid els is the gold standard when it comes to the hearing in numbers should they

are very transparent. when i saw that number today, that was more surprising than the month of january. i asked them, how would we revise 700,000 plus jobs? what was explained to me is we have had the same revisions over that same time should i am excited today. we still have work to do. the celebration could last for a little bit. then we have to go back to work. >> let's talk about what we have to work on. the consumer does not feel appeared i can talk about where unemployment is. they feel the 7% inflation. they feel crude prices where they are. crude through the 90's. you sell consumer sentiment last week, a decade low. what is the disconnect for you and how do you and the administration fix that? and how people feel at the moment. >> i don't know if it is a disconnect. i think it is how people feel at the moment.

the american people and folks in this world have gone through a lot in the last two years. there is a lot of concerned about their family, a lot of concern about the virus. a lot of concern if you have been vaccinated, if you don't want to get vaccinated. there is a lot of concern. the president laid out a plan at the beating of last year to get people back to work. 6.7 million americans got back to work. the president laid out a plan to deal with inflation and design 21. we just need to do our job. you worry about the poll numbers later on. right now, you worry about doing your job. as a former elected official, you want to see the great numbers and you feel good about it but you still have to do your job to do the president is very focused on vacation or he does everything for the american people. shery: labor secretary marty walsh speaking with bloomberg. take a look at how markets across asia are trading.

the nikkei and the topics are losing ground. this after we saw the first week regaining five for japanese stocks. we are seeing downside pressure on the japanese yen holding at the 115 level. it is all about the jgb yields. the yield at the moment is topping that .2%. we had seen them that -- seen them reached that level last week. given the speculation boj will end of normalizing policy with the rest of the world. we could be seeing an unscheduled bond purchase operation. the kospi is down 910's of 1%. we are seeing them fall after playing catch-up from the lunar new year holiday last week. the asx 200 is also losing ground should losses at the moment down a 10th of 1%. after we saw u.s. didrex rising -- u.s. stocks rising. investors are trying to way

where earnings are growing especially with the very strong jobs report. haidi: even if we can dig deeper into the jobs are and whether that does convey true strength. take a look at some of the divergent moves we are seeing in the australian session and a what is a slightly softer session overall. we are seeing one of the outperformer's up but 20%. they were cheated -- they cratered a routine by up proposal. that is according to a reporting from the all -- from the australian newspaper. we are seeing some of the positivity flow through there. boosting the operating profit forecast for the full year. also watching a financial group. seeing a huge plunge. the founder taking a medical leave of absence.

this is the australian asset manager grappling with fund outflows. the stock price continuing to tumble. lots more to come. this is bloomberg.

haidi: you're getting australian fourth-quarter retail sales rising to beating expectations of 7.8%. we are seeing the 8.2% upward trajectory when it comes to the quarter on quarter number. this coming after the relaxation of restrictions. the opening of a lot of cross order travel. despite as we see omicron continuing to take hold. we do see the robust rebound

when it comes to hospitality services as well as retail. 8.2% in the fourth quarter. beating expectations. not much of a reaction when it comes to trading in the aussie dollar, which has been reasonably flat after we saw the gain of 1.2% against the greenback next week. shery: take a look at the pi -- the pmi numbers coming out of singapore. for the month of january, came in at 54.4. a little bit of easing from the previous month. pmi numbers in singapore have stayed in positive territory since november of 2020. we have seen significant strength. we are seeing a little bit of easing and coming in at 54.4 take a look at the broader markets trading right now because we are seeing downside for equity markets across the board. new zealand away on holidays. the nikkei is down 1% while the

topics is almost down as much. this coming at a time of we are watching the jgb yields. we are really watching whether we will see any bond purchase up ration by the bank of an trying to push back on the rhetoric they will have to tighten monetary policy with the rest of the world. the nikkei is being led lower by tech stocks and consumer discretionary stocks. we are seeing the energy sector are gaining ground. a little bit of pressure in the asian session but above the $90 a barrel level for wti. take a look at one stock we are watching, which is olympus intel euro. following 11%, the most since march of 2020. despite the faith they have

boosted their full net sales forecast. put into talent -- context. 30% of the past few weeks or so. it has been a huge again her. we spoke to the coo about the prospects for olympus focusing on the medical devices. we'll be hearing more from that conversation next. let's go right there because the olympus coo spoke to us exclusively about the plans to spin off their scientific solutions lifestyle unit. this is the company sharpens their focus on the health care sector. >> we all know what happens with the camera business. the company people did very well at the beginning of the last decade. by now, pretty much all of our business is medical devices. shery: we have heard from your leadership you could be thinking into selling the science

business where you make your microscopes and so forth. why is that and how does that fit into your overall strategy? >> it has become a leader in the health care sector. what we call scientific solutions divisions is an area where we believe they will do better if they are at -- if they are independent from a company that wants to focus on medical devices. for the company, will be able to focus our investments and efforts in the medical sector. they will be able to pursue at their pace. and develop their own tactics. i think for both of us, will be a great picture. when will that happen? could the company will be dashed

the new company will act as independent. haidi: you lead a number of deals in the therapeutic business over the past few years are there missing pieces you would like to fill in? >> there always missing pieces should -- there are always missing pieces. i think we have a pretty good portfolio. there always missing pieces we can add to a portfolio to complement our strategy. haidi: how has olympus coped with the global supply chain issues and logistical disruptions we have seen out of the pandemic and what are some lessons learned for the future? >> the last two years is bake for a lot of companies. starting with covid, at first we learn a lot about contingency plans and learned about getting

ready for those situations because part of the situation at the beginning was the disruption of the supply chain. now we are in a different situation. we are in the story of -- so much chip conductors and supply chains i think the world has become a more uncertain place and i think for any company what we need to do is be able to lead. this is difficult sometimes for japanese corporation. we like to plan and plan ahead very well. we need to be a little more creative in the way we plan our supply chain and except that we are going to have to live with some uncertainty. it means simply we are going to have to be more open and try different things. haidi: the coo. let's get you to vonnie quinn. vonnie: the u.s. secretary of

state antony blinken and french foreign minister held talks about ukraine on sunday ahead of the emmanuel macron trip to moscow and kiev. the trip -- before the trip on monday, the french president said he was confident on reaching a deal to avoid war. he also hinted concessions may have to be made to russia. australia is planning to reopen orders change national tours. karen andrews made the comments to abc tv following a report saying tourists will be allowed back into the country by the end of february. andrews says the country is gathering more information per dos trail you has closed its borders to foreign travelers from was two years now. the nbc sitcom friends is returning to china. the show will be richer -- will be available to platforms

including tencent at a pace of one season per week. friends was introduced in china in 2012 and has come and gone on a variety of local streaming services. the latest release is notable giving china's restrictions on american entertainment. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. haidi: central bank tightening in the west reports prices in the east. bloomberg's economics policy at her kathleen hays is here with the latest. what are we talking about when it comes to the mechanism the in drc is adding on? >> the national involvement of the commission putting out a statement over the weekend. what they're looking at is central banks, federal reserve's

getting ready for march. bank of england has already moved. that is going to hit their economies and that is going to hit demand particularly for commodities. dampen commodity prices that will keep a lid on china's inflation rate. this chart shows you as china's ppi eased year-over-year to 10.3 percent in december from 12.9 in november, you could see there was a big drop in raw materials, prices, excavated product prices and that is a good thing. they see food and clothing -- and close feeding in. move to another chart real quick. we can see crude oil fitchett -- crude oil pictures those have been surging at cents after the api report came out to consumer prices are expected to remain steady. with oil rising and expected to

continue rising for a while, it may be -- take a lot more central bank tightening. shery: how will all of this factor into the three big asian central bank meetings this week? >> we are expecting everybody to remain on hold. the bank of thailand. there economy is doing a little better but the big problem for them as china's chick covid zero strategy has put a lid on recovery and tourism. the next move the central bank chief has said will be to remove liquidity. we will watch their policy statement and any guidance we get from their press conference. as we move on to the reserve bank of india, this is the case of a subtle change. they are expected to raise their reverse repo rate this is the

main number. the rate of 4% that will remain unchanged at the meeting. the second most important now at 3.35%. expected to be raised to 3.55% to raise the -- dinero the corridor. they are not ready to move yet either. let's scratch them off. this is something we can watch and whatever guidance they give us especially after the budget they released last week. if we move on to bank indonesia, this is the perfect title. indonesia's nonexistent inflation problem. it is still well below target. the governor of bank indonesia said on february 2 reporting -- repeating again we are not going to be to make a move. our next move will probably be to tighten. we don't need to move until we see inflation moving higher. there were hawkish remarks. so the deputy governors saying

policy will be preemptive. thank -- got people thinking they're getting ready to at least send a signal. hold the key right steady. see what happens next. we will watch care we will listen for what they say. the problem believe it will not watch for what they do because they are probably not going to do much. shery: so exciting when you have somebody as asians from foreign banks. coming up next, -- summary decisions from foreign banks picked me up next, china zero covid policy and we will hear from the u.s. think tank's senior fellow for global health. this is bloomberg. ♪

haidi: let's get more on the vision winter olympics. viewers will not just be paying attention to the athletes and the competition but also to how the country will be handling the pandemic amid the spread of omicron and the covid zero strategy. beijing's decision to isolate the games from the rotor population has highlighted the country's insistence on this policy. our next guest says criticism undoes some of the progress made. let's bring in the senior fellow for global health at the health council on foreign relations. great to have you with us.

as a soft power peace, how effective have the enter olympics been given the amount of those -- given the geopolitical strategy or the human rights at play? >> when we talk about the soft power, when we talk about china's influence internationally, it varies across regions. you may not be doing very well in the developed countries because of the human rights abuses. the developing world, the story might be very different. it is doing much better in the lower and middle income countries then in the developing world. haidi: who is beijing hoping to

change hearts and minds of here? it is clearly not the focus of the great competition with the u.s.. are we talking about some of these middle nations? some of the nations aware soft diplomacy and investment from china has taken hold? >> i think it is not as much about beijing wants to change the hearts and minds of people in the rest of the world as i have argued elsewhere. increasingly within beijing actually, wanting the rest of the world to adapt to a more confident and reinvented china. by hosting the olympics and hosting successful olympic event, it wants to show its ability to do so at a time even when omicron is spreading rapidly. it ones to showcase china's zero covid strategy and continues to work despite omicron and even the other countries are moving away from that approach. shery: but not really pretty

covid zero strategy seems to be getting some cracks given the omicron variant now. how much longer can they keep this up given the cost? >> that is a great question. if you look at the number of infections, the community spread, so for the covid strategy still works even with the omicron variant. there is no threat inside the bubble. beyond the bubble, you don't see much community spread except in tangshan. it includes that it has highest social -- there are no signs of beijing pivoting away from that approach because there seems to be

confident that zero covid is still effective in terms of bringing the situation under control in terms of preventing the flareups from developing into larger out brokers. shery: is there any hope at this point for the u.s. and china in terms of health care given also washington's position on finding the source of the covid-19 virus? >> you would expect -- facing such a global threat. to work together to combat such a common threat. that is not the case. even the united states showed interest in working with china on climate crises. there is no syria's discussion

between the two countries on working with each other on a global health security combating a common thread. the main problem is this lack of trust between the two nations. washington even though it is on the interest of the united states, your work where the chinese in terms of backstabbing the world to end the pandemic as soon as possible. the calls are stonewalled in washington simply because they insist china has to be fully cooperating with issues -- the pandemic probe. shery: it was good talking to you. council on foreign relations global health. let's stay with the pandemic because hong kong has registered close to several hundred local transmitted coronavirus cases this weekend. let's bring in the global energy or for business. we were talking about the covid

zero strategy and we know hong kong has strict restrictions. the caseload is rising rapidly. this as they have come back from the lunar new year holiday. what can we expect now? >> i think you can expect to see further records being set over the next couple of days as the case loads start to come in and hong kong struggles to bring this under control. omicron has pushed their covid zero strategy to a precipice. they are probably at the juncture where they need to decide whether there we are going to go for restrictions even they have not encountered before. mandatory work from home orders morning in the number of people who can dine out out to two or even less. maybe what -- lockdowns that are increasingly

being used on the mainland to bring omicron under control. haidi: we have seen cases multiply elsewhere in asia. places like malaysia. how is this being handled by governments? >> it is completely to what you are desperately different to what you are seeing with china and hong kong. they are sticking stilts had the covid zero policy. places like malaysia shifting responsibility when it comes to the pandemic onto people. there is a hashtag the government is pushing. this is your responsibility. this is your health. as we see this milder and variants sweeping through these places, there is an emphasis for them to live with the virus and in stark contrast to china and

hong kong. haidi: this idea of person -- of personal responsibility taking place in a lot of jurisdictions. coming up next, we are going to take a look at head to china's key markets. a big surge in hong kong stocks on friday. what does target the hold for mainland your stocks. this is bloomberg. ♪

shery: mainland chinese markets are set to reopen in over half an hour as traders return to work after the week long lunar new year holiday. here is david with a look ahead should it has been such a roller coaster week whether does the global bond rout or markets are reacting to earnings. what are you watching? dark coat the market does look a lot different than when mainland china was last trading 10 calendar days ago whether that is yields come expectations on the fed price, some of these -- looks like we will get the pop at the open. whether that holds into the close is another altogether kid there is an element of catch up you commodity mark -- of catch up.

whether that is energy, coal, some of your metals contracts. haidi: china's trading day in the year of the tiger. as it ferocious gains or will we see something else entirely? >> hopefully the former shared if you look back at history, there really is no sort of science behind historical trends in the weeks that follow the reopening. the last few years have been strange. the years before that were more normal. we did get some gains. hopefully we will run with that as they say. back to you guys. haidi: that is it for daybreak asia. our markets coverage including the reopening in mainland china after the lunar new year holidays. we get to the start of trading in hong kong, shanghai and shenzhen should stay with us -- and shenzhen.

bloomberg markets china open is almost upon us. this is bloomberg. ♪

>> good monday morning from hong kong. it is not :00 a.m. in beijing, shanghai and the city. welcome to the china open. i am david ingles with yvonne man. stoxx may get a mild bounce after digging deeper into bear territory in the last session.