>> a very good morning. i'm heidi. >> i'm shery ahn in new york. our top stories, asian stocks that arise as risk appetite improves and havens fall out of favor. treasuries and the dollar dipped. russia announces a partial pullback of troops in the u.s. invasion -- and the u.s. as invasion is still possible.

and we had to singapore for the latest from asia's biggest air show. we are getting breaking news out of south korea. the jobless rate coming in at 3.6% for the month of january, which is below analyst expectations of 3.7. it is also lower than the previous month of december. the jobless rate in south korea, 3.6%. it is not surprising given that we have seen an economic recovery in china. and more participation in the labor markets. this as speculation continues on whether or not the bank of korea will continue to tighten policy. >> and earnings coming in. they are reporting net income for the fourth quarter coming in just over $1 billion. that is slightly better than expectations. the fourth quarter beating

expectations as well, $589 million. the ceo saying that he believes the worst is now behind us. signs of the market recovery continue in singapore. and coming in at $1.68 billion, that is just over expectations of $1.65 billion. other losses beating expectations as well. that income of just over 4 billion dollars. take a look at the australian open and it does look like they are starting to trade. a second day of losses in sydney and seeing about .1% lower. we're still seeing a pullback when it comes to risk aversion and lending a little bit more heft to the risk currencies as

well including the likes of the aussie dollar. we are seeing a fair bit of stability and the 10 year holding pretty steady at the moment. a huge day when it comes to earnings. a huge reaction for not just earnings, but the action we saw in iron ore prices on the back of potential regulatory action and a price cap on iron ore being discussed with chinese media. take a look at the day ahead when it comes to trading in japan. chicago and nikkei futures looking a little bit negative. >> take a look at futures. see a little bit of downside for u.s. futures. this after we saw stocks climbing for the first time in four sessions in new york. this as speculation about geopolitical tensions easily bit. not to mention that this actually offset some of the concerns about the very strong u.s. inflation when it comes to

producer prices. treasury futures holding steady as we saw the 10-year yield topping 2%. the crew rebounding a little bit after falling in new york after russia said some troops are starting to pull back, but u.s. president joe biden warning that russia may yet attack ukraine even after president putin's diplomacy. here is what the leaders had to say. president biden: the united states is prepared no matter what happens. we are ready with diplomacy, to engage in diplomacy with russia. and our allies and partners to secure stability as a whole. and we are ready to respond decisively. which is still very much a possibility. >> concerning whether we want it or not, that is why we put forward the proposal. we did not receive a substantial constructive response on

proposals made by us. >> let's bring in jodi schneider. what is president putin saying in terms of a diplomatic solution? >> he is saying he wants to have a diplomatic solution. that he would favor that. and he said that there was a partial withdrawal of those troops. but he did not say how many. and that has not been verified by the u.s. or its allies. at the same time, there was a warning embedded in what he was saying. even as he said he was seeking a diplomatic solution, he said russia would not wait forever for the u.s. and its allies to promise that it would keep ukraine out of nato which is what it has been wanting. implicit and embedded in his talk about wanting a diplomatic solution was the warning that it would not wait forever.

this came after this message from the russian president. it came after a three hour meeting with the german chancellor. so those efforts had some kind of diplomatic solution. >> and walking this fine line between a warning and an olive branch, part of that is looking at what is going on with the troops that have amassed at the border. what do you know about those? >> that is implicit with the u.s. president joe biden's comments. he said he would welcome diplomacy but they don't know how many troops there are there. they estimate they have reached their limit and they have not seen a withdrawal. joe biden was saying he wants to see diplomacy. they favor that. but at the same time, he's quite

concerned. he says there is a very threatening posture having troops at the border even though president putin has continued to say those are just military exercises. at this point, all sides saying they wanted diplomatic solution, but the question is, will they get it? how many troops are really there? >> our bloomberg political news director jodi schneider with the latest on the geopolitical tensions. and in the u.s., where watching a hotter than forecast jump in prices. and of course, the needs for quicker steps from the fed to address it. kathleen hays is here with the numbers. what is driving the surge? >> what is not driving the increase? the prices are across the board that are rising. this is wholesale prices.

this is what people are paying when they produce goods and what they sell them for when they sell them to the store to sell to us. at any rate, a very large number. let's see what happened to the u.s. ppi in january. it was only supposed to go up 9% but you can see it is a steady not just march but kind of a rehire. the ppi had a 1% increase. 0.5 since december. and a jew prices were up 1.3% in january. move onto the next chart and you can see 8% year-over-year. it was a full percent higher than it was in december. this is what we're seeing in goods and service prices. prices are higher than ever, up 1.7%.

but look at what prices are doing. zero point 7%. intermediate goods prices. step back in the line of production. up 1.7 percent in january. 24% year-over-year. no wonder people are saying that the alert is right. we will see what they do in march, but this is another red light for the fed. >> senate republicans kept blocking the nomination to be the vice chair of supervision by preventing a vote from going to the floor. why? >> you can say it is about politics and it may be. though the republicans on the senate finance committee who made the vote are already to vote on jay powell as well as lisa cook and william jefferson who would be one of the new african-americans joining the board of governors.

they are balking over sarah, a former fed board governor who was deputy secretary under obama. she briefly joined a fintech company where she helped -- as a director, she was asked, what did you do to get the fintech company access to the central payment system? this is something a lot of companies get. she says she has been vetted and the kansas city fed said it was fine but republicans on the committee want to know more. the vote was rescheduled. the democrats are not going to give up so we will see who gives next. >> our bloomberg economics and policy editor. let's get vonnie quinn. >> hong kong has reported more than 1600 new covid cases at about 5400 preliminary infections. officials say that they are now aiming to confirm positive cases within 24 hours as more testing

workers are employed. local media report the quarantine hotels for incoming travelers and isolation facilities for the community. the city has 44 hotels and 12.5 thousand rooms. the top police chief has reportedly stepped down after drawing criticism for his hands off approach to anti-vaccine mandate protests. demonstrators continue to hold traffic at two major border crossings in western canada even after prime minister justin trudeau used emergency powers to end the blockade. they emphasize negotiations with protesters instead. prince andrew has agreed to settle a lawsuit in which he was accused of sexually abusing a 17-year-old girl introduced to him by financier jeffrey epstein. court documents show prince andrew will make a substantial donation to the charity of his accuser and declare that he never met to malign her character.

-- never meant to malign her character. 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. this is bloomberg. >> let's take a look at what we're watching in the first 10 minutes of trade. we did get those earnings numbers out just a little bit earlier. we saw how profits slide on the softer prices we have seen in iron ore. this is the world's number for iron ore exporter there. 32% thanks to that sharp drop in prices. the downside of about 1.5%. this is a stock that has rallied about 16% so far this year for the broader index. now reporting today, down by 2.3%. we have lots of questions on if

the miners are going into the next cycle. we see investment and skyhigh prices across much of the commodities index. the buyer and pharmaceuticals giant are maintaining the profit at a cost of currency forecast and getting some more details when it comes to the outlook on plasma collection as well and that first half. treasury wide, this is a really good company and stock given the trade tensions and the ban on us trillion -- australian lines by china. some of those metrics are missing expectations. lots more ahead, including a transformation company telling us how foreign businesses can rise above nationalistic sentiment in china, which is dethroning some of the world's biggest brands in favor of domestic names. coming up next, edwards national tells us why they are still bullish on tech and why stocks

might be the answer. this is bloomberg. ♪

>> the u.s. equity market dropped after russian president vladimir putin moved to ease tensions on the border of the ukraine and tech is now gaining momentum again. the nasa 100 outperforming the s&p 500 despite the fact that we do have higher yield. that is not necessarily aiding the broader s&p 500. our next guest says she is a growth, tech, and innovation guru. let's discuss why. carol, always good to have you with us. there has been a lot of support for these value stops, especially when you have yields rising. why do you continue to favor

growth? >> in the long run, you are either growing or you are dying. companies that are growing have the best long-term growth over the last 10 years. we see growth for value. value has its moments. in a fearful market, people flee back to value. but in the long run, we are moving toward growth. i'm not worried about inflation fears because, remember, a little bit of inflation means the world is picking back up. we had an unnatural time when no one is moving and of course, we will have problems with inflation. i think it is still extremely exciting and we are on the edge of some wonderful breakthroughs and new innovations that are going to be phenomenal for investors. >> how much is growth helped by geopolitical tensions over the ukraine? where would you go for some protection? >> i love amazon because amazon is a company with massive cash flow and has fingers in many

pies. for example, they just launched a new service where you can go to the airport and walk out with outstanding on the checkout. that is phenomenal. they are teasing us on the super bowl in the u.s. with the lord of the rings show that will drive more users to amazon prime and there has been very little pushback. this is a behemoth that is cash-based and in many industries and is a fantastic play if you like the same part of the tech world to invest in going forward. we won't have to worry about paying for college. >> you are not even ratting out meta-at this point despite the volatility we have seen. >> i am not writing off meta-at

all. i think it's ahead of its time right now. those of us that are over the age of 30 are going, what is that? but my 15-year-old daughter understands it very well. the kids, the next generation, they understand meta extremely well. that is when we will see the play, but it is early days. remember when the first internet stocks came out and everybody was extremely skeptical. mark zuckerberg is a smart guy. don't write him off just yet. i don't think you will get the short-term bump you like, but over the next four or five years, you will see the metaverse really pick up. it is linked to the bitcoin movement and all of these things coming together very rapidly. he's just a little bit ahead of the curve right now. >> we have seen a great reaction when it comes to the latest airbnb numbers. is this an indication that there

were companies that were pandemic darlings that continue to be flexible enough to be able to adjust to a hybrid world? >> the pandemic world is not over. look at the numbers we saw in hong kong. it's on a pause right now but we could get another variant. companies that can cater to you and not have to have you go places, personally, are the companies to follow. there's a little nasdaq company called qantas. there are people sending money home to their family and they don't have to go to western union anymore. they can do it all on the app. we just announced that partnership and we also offer those hard-working people wonderful things like amazon cash and buying play stations for their kids so you don't have to go to public -- out in public

if you don't need to. the winners will be those that understand we are flexible. we like to be home and sometimes we like to go out. if you can deal with consumers either inside or outside their homes, then you are the winner going forward. >> carol, great to have you with us. carol pepper with some of her trading ideas. the markets and stories you need to do to get going. you can also customize those settings and get your news on the industries and the asset backing to you. this is bloomberg. ♪

>> we are tracking the fallout of the global supply chain crunch. the vaccine mandate protesters at some border crossings in

canada are leaving after prime minister justin trudeau invoked emergency powers that could freeze bank accounts and suspend insurance. the crossing is now open and demonstrators are preparing to leave the north dakota crossing later on wednesday. maritime says cyberattacks would be a risk of the -- in the event of a military conflict involving russia, the ukraine, and western powers. it already strained supply chains due to covid policy out of china and uncertainty around talks on the u.s. west coast. the first quarter results after the u.s. on wednesday, analysts did not see the chipmaker as seeing the chipmaker strain for key parts. it could cap sales growth. shery: here's another look at related stocks. nvidia and cisco will report after the bell on wednesday. bloomberg terminal users can read more about those stories in our newsletter supply line on ni trade nl.

and it's day number two of the singapore air show. it lets bring in our chief international correspondent for southeast asia with what to expect. haslinda, the so much to discuss whether it is covert instructions or surging oil prices. what has been the key theme so far? haslinda: it's really about navigating through the pandemic and in the process, capitalizing on the trends that are emerging. case in point, surging demand in cargo. prices surged 150%. not surprising, doubling down on efforts to convert planes which are not being used right now because of the lack of travel demand to freighters and we know that is doubling down efforts are they have about 20 lines converting planes to freighters for just 12 previously before the pandemic.

these lines are in china and in the city of kwong joe -- and speaking of china, it is not lost that china is absent from this air show. what's even more glaring is china's lack of participation in the international travel recovery story. we know back in 2019 when china was participating in the travel industry, they spent about 200 $50 billion in international travel. that is not happening. and as long as there is a policy of zero covid, and some say that can happen perhaps in 2023 and even 2024. even when it comes to asia and southeast asia, it is a huge and important market for them.

>> haslinda are southeast asia correspondent. honeywell's head joins us in the next hour and we are asking him what kind of deals he is seeing this year. it's get you a quick check of the latest business flash headlines. a surprise profit after making losses for seven straight quarters. net income rose 30% in the three months ending december coming in at $3.1 million. it's a strong beat on estimates. spice jet has renegotiated aircraft leases to current expenses. airbnb jumped in late trading after fourth-quarter revenue and profit exceeded estimates. remote work policies and a resurgence in vacation demand driving short-term bookings despite disruptions caused by omicron. the company says people are spreading out to thousands of towns and cities and staying for longer as more companies allow employees to work from anywhere.

plenty more to come on daybreak: asia. this is bloomberg. ♪

shery: vonnie: -- this is daybreak: asia. i'm vonnie quinn. vladimir putin says he's hoping for a diplomatic solution to tensions with the united states and its allies. geeking from the kremlin, putin announced a partial pullback of thousands of troops stationed near the craney and border. , however he warned moscow is waiting for the west to address ukraine never join nato. he surprised data indicates the

fed be more aggressive raising rates. cpi rose to 9.7% year on year in january, reflecting broad increases across several categories. it indicates inflation pressures in the production pipeline are main intense and will filter through into the final cost of consumer goods and services. senate republicans have blocked a vote on president biden's fed nominees. republicans say raskin has not addressed questions about her role at a fintech company and has been criticized for saying the fed needs to do more on climate change. senate minority leader mitch mcconnell said biden should find a better, more mainstream nominee. a combined audience of over 112 million people watched the super bowl on various outlets, a 15% jump from last year. the championship game was seen by about 99 million people on nbc, 11 million on streaming

services and 2 million on the spanish language network, telemundo. it was the most watched super bowl in five years. 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. haidi: chinese data do and the next couple of hours, expected to show the prices for producers and consumers ease last month. let's get a preview of what to expect with our chief asian correspondent in hong kong. >> consumer prices are due to come in around 1%. the story there is all about food prices, in particular a drop in pork prices, bringing down the headline rate. producer prices also expected to have cooled down to 9.5 percent. that was a big story last year,

all about pressure on manufacturers. this should take some cost pressures, but they continue to complain about ventures. china's inflation heading in one direction, u.s. inflation and monetary policy heading in the other direction. shery: that gives more flexibility to the pboc, but how much can they realistically do when you have the fed moving toward hiking rates? >> they have a window to move, no doubt about it and we know what is happening with the consumer. the slowdown is there, they put about 16 billion into the system yesterday and will have a window in april and maybe have a better read on the economy. if the fed is on an aggressive

cycle, you have to wonder what it could mean for pressure on china's currency and money going into the country. so far, the currency is holding up well. there's a lot of dollars flowing into china. let's not forget capital flows are much stickier this time around because of the index inclusions. that's an important dynamic to remember. right here, right now, there is a window for the pboc to move, but later in the year, that could get a bit more complicated. shery: the world bank also saying developing countries face a risk. carmen reinhart spoke to us about the growing debt burden. >> there has been a great deal of forbearance during the crisis.

so it is reasonable to expect nonperforming loans are not telling the whole story. a lot more firms and a lot more households may have problems and this brings memories of zombie loans in other cases where there is financial stress such as we had during covid. i don't think central banks are going to be responding to the frail situation in many of the low income countries. but the rate hikes are likely to go much beyond impacting low income companies. the larger emerging markets as well will have to deal with higher financing costs.

and possibly deal with less appetite for the debt of foreign investors. >> you are saying early detection of financial risks is crucial but perhaps some of those metrics do not clearly reflect the problem. so how do you do that? >> this is the time for auditing, revisiting bank balance sheets and getting a true assessment of both where the weaknesses lie and banks, we have corporate surveys that tell a different story from the nonperforming loans. these look at medium and small businesses and are either in arrears or expect to be in arrears in the near future. that is a signal that nonperforming loans may not be

telling the whole story. this is particularly important because everyone wants a recovery and we have had significant recovery not just in the u.s. in particular but advanced economies at large. we have not seen anything resembling that in the emerging markets and certainly not in the low income countries that are so much stress here. >> many countries are still struggling with the pandemic, they are not even in the early recovery stages like advanced countries that have cut up -- that have caught up with their economies. who helps them? what is the solution here? >> the multilateral institutions, the imf and other multilateral's have been doing a great deal of new lending to support these countries during the pandemic. but the next phase, especially for the low income countries, as

a group they are in the worst shape already. vast debt restructuring is critical and what we have seen so far, we had the introduction of the common framework and more than year later, we have not seen the debt restructuring materialize. i think the g20, it is a good message for the g20 to remember the rapid debt restructuring means helping these countries avoid a major reversal in development and in poverty, and all the social indicators that are suffering setbacks. >> does that meant mean specials on things like digital services to makehese assistants more efficient or at a fundamental level would have to provide resources, funding or say we are just going to flat out forgive some debt.

outside the imf and world bank, is that what other wealthier nations need to do? >> i think what is more in the ball court of the g20 is the issue of debt forgiveness, specifically debt restructuring. bigger, faster write-downs of existing debt. haidi: coming up next, nationalism in china -- we discuss how foreign brands must readjust their strategies. this is bloomberg. ♪

shery: china's 1.4 billion consumers were once seen as an untapped gold mine for western brands. now they are becoming a growing headache as chinese shoppers behave more and more like an extension of beijing's political agenda. this is our investigation shows is apparent for sneaker makers like adidas and nike. sales have plummeted as chinese consumers increasingly show

their patriotism by buying local labels instead. haidi: such an interesting deep dive. let's bring in jonathan cummings. his clients include the likes of dell, starbucks and bmw. great to have you with us. are we at the precipice of a shift when it comes to consumer preferences in china and if so, how do the western brands used to naturally having that demographics flock to them in that market? jonathan: good morning and thank you for having me on. in terms of being at an inflection point, ultimately there's a number of factors that come into play. but chinese businesses in particular have really learned to understand brand value, how to unlock brand value way more than they did before. so international friends who had

a relatively easy run into china need to adapt. haidi: as with the entire world, we've been following the stories of -- not just with western countries but domestic brands as well, the political nature of being a brand in china, how risky is it for a brand to find a high-profile ambassador giving -- given the need to tread the line as far as not saying the wrong thing. jonathan: there's always a risk around that in china as it is in other markaround the world and that's part of the relationship between the brand and and ambassador, having the shared values from the outset. working toward the same ultimate

purpose, that needs to be addressed and thought through at the outset. in the past, they've thought let's just get on board. in terms of that relationship between a brand and that investor. shery: in china and many other asian countries, there was a perception that american and european brands were more luxurious. has that and largely offset by nationalism now? jonathan: i think it has been offset by a number of different factors. in particular, the advance we've seen from chinese businesses and brands in particular in terms of building brand value. it has risen for a number of

different reasons -- quality differentiation and the ability to design products and communication that speak directly to the needs and mindset of chinese consumers are huge factors as well. chinese businesses have come such a long way in the last decade. initially, learning from their international counterparts, but having a culture of innovation to surpass them so the opportunity or realization now of chinese businesses able to speak more directly to their consumers. there's less international brands needing to catch up. shery: what are international brands doing to catch up? jonathan: there's a train -- there's a change in their strategy. we work with a lot of domestic and then international brands and 10 years ago, it would be very much scared about distribution.

now what we are seeing our brands drat -- adapting their strategy and taking a china-specific lens to their grand addition and they can talk any more relevant way to that audience and we see that across categories from the automotive market in particular were domestic brands are so strong. we are seeing a much more china-specific strategy. shery: it was good having you on. coming up, some of wall street's against banks are working to build their presence in the metaverse. jp morgan among the first to jump on the virtual bandwagon. we will find out what that could be worth just ahead. this is bloomberg. ♪

>> the metaverse, what does that mean it really? >> whatever it may be -- >> this is an exciting opportunity -- >> this is the next horizon. >> the metaverse, and fts, digital opportunities and experiences will give us an opportunity to engage with

consumers. >> we believe where there is a world we can add a third dimension of storytelling. >> there's going to be a lot of different ways people experience events. >> if you mean are we all going to wear headsets and stay in our houses all the time, if we are lucky enough to emerge from our caves after this pandemic, i think at least for the next three to five years, people will be more excitedge in real life than ever before. shery: we continue to see crypto assets rally with gains above 44,000 dollars for bitcoin, the highest level we have seen for the past week or so. we have seen a lot of volatility in these currencies, given concerns about tensions. at one point, market jitters taking bitcoin down about 3% last friday but we continue to see the surge higher right now

over the weekend. extending gains from the new york session. the crypto economy linked to the metaverse and this is far out in the future but investors are hopping on the bandwagon. metaverse etf's could balloon to $80 billion in assets under management. this as funds cap slice for 3d virtual social worlds. j.p. morgan chase has become the first of the big wall street banks that jump on the virtual train. >> there is a 3d world and there is a picture of -- there is jp morgan in the virtual world with an avatar of jamie dimon riding a tiger.

you are looking at the brick-and-mortar headquarters of j.p. morgan chase which remains in new york city but the blockchain formed back in 2020 created the virtual world office and they are also creating an upstairs lounge. all of this comes as j.p. morgan chase releases a paper on how businesses can explore opportunities in the metaverse. that is perhaps where it is going. a lot of digital platforms believe is going to be part of the future. many analysts, including those in bloomberg intelligence and bank of america is a leader in the metaphors -- metaverse category -- roadblocks seeing

its stock plunge, down as much as 19%. it has pulled back, one of those companies that really took off in the pandemic because it is a leader in metaverse, a creator with a unique view of the world. it reported bookings miss the estimate, there is a bit of a slowing down that may be the pandemic boom is over. it could also show growing pains associated with the metaverse. facebook, which is now known as meta saw its stock fall. so it is an area we are seeing some companies take hits for. jp morgan going forward with their metaverse lounge.

it will be exciting to see what happens. haidi: we are seeing crypto counseling back. what are the drivers we are seeing? su: the main driver is the risk on and that has to do a lot with the easing of tensions on the russia-ukraine border. let's look at the chart. we are seeing a four-day bounceback and that put us above the $44,000 mark. that's the first time we've seen it since the end of last week. a sea of green for all crypto and ether jumping 7%. a lot of green on the screen. more now as a collation trade with tech stocks and other areas of the market. meanwhile, the new york stock

exchange wants to be the marketplace for an fts, non-fungible tokens. according to a regulatory filing , they want to be the financial exchange for cryptocurrencies and an fts, doing for digital assets what it does for stocks. that is a bold move, so an important announcement and a lot to be hammered out on that. haidi: let's get a quick check of the business flash headlines. first half results fell short for the iron ore producer. interim dividends of 86%, also down from one aussie dollar and $.47 a year ago. dow jones and the sec are looking into how the crypto

exchange disclosed to customers its relationships. coinbase is launching a pilot program for sending funds to people in mexico. the service would be free until the end of march and would allow users to convert money into pesos. they say it will be 25% to 30% cheaper than other platforms. shery: we will be watching crypto related stocks as we continue to see bitcoin firmly above the 44,000 level. when it comes to south korea, they may move after the jobless rate fell more than expected in january to 3.6%. the market opens in seoul and tokyo are next. this is bloomberg. ♪

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shery: welcome to daybreak asia from bloomberg world headquarters in new york. haidi: asia's major markets have just open for trade. our top stories this hour -- asian stocks sets to rise as risk appetite returns. can inflation data from china with price pressures seen easing. russia announces a partial pullback of troops near ukraine

and seems to seek a diplomatic path. the u.s. says an invasion is still possible. and then interview with the airbnb ceo following a revenue beat. i the company is saying raise billion in the face of omicron. shery: upside for japanese stocks with consumer discretionary leading the gains. the only sector down right now is energy and we have prices falling in the new york session, but a rebound in asian trading all to do with ukraine tensions. we are watching crypto-related stocks in japan and south korea, given bitcoin is above $44,000 at the moment. we are seeing upside of more than 1.5% and threes sections of losses. the korean strengthening away from the 1200 level. take a look at consumers shares in south korea given we have the

jobless rate falling more than expected to 3.6%. we are very much watching what is happening in the yield space as well as japanese yields continue to be under pressure despite the fact we had yields rallying in treasury in new york. -- treasuries in new york. haidi: to really start the conversation as to what was behind the volatility jump, was it just about ukraine or was at volatility to grow? in australia, we are back to gains, strong gains when it comes to health care. an earnings story when it comes to health care and a drag. we also see a little downside when it comes to energy and materials. materials are the worst decliners, lagging today,

disappointing when it comes to its second-half earnings there. prices really playing out. new zealand seeing upside of .9% as we see a tweak to the omicron restrictions. we are seeing a return to risk when it comes to the commodity currencies as well. let's take a look across treasuries as well as a pullback when it comes to the big move in treasuries and global bond markets. there are concerns about inflation and how the fed is moving and how aggressive the tightening is going to be. a lot of that has been pushed to the side over the last couple of trading sessions over the increased tensions between russia and ukraine. shery: our next guest says any escalation on the ukraine front

could trigger further downside for risk outset -- risk assets in the coming weeks and months. joining us is the cio and head of global asset allocation note ubs global wealth management. always great talking to you. how would you hedge any geopolitical tension? >> we had the relief rally over the last couple of hours which -- we are not out of the woods. something very difficult to hedge. we think some of the hedges are going on already, being long commodities. particularly and escalation of the ukraine crisis. looking for other assets like the japanese yen, one hedge to

trade particularly at this point. shery: whether it is oil or grains, really leading to inflationary concerns and perhaps concern over what is happening with food prices and we continue to see those soaring. do we need to hedge social unrest risk and how would you do that? >> i think it is one of the risks we should monitor. we should not forget we have had similar episodes over the last 10 years. particularly in the emerging markets. particularly with the ukraine crisis, this is a clear risk. russia produces 20% of wheat and we are starting to see some impact in the emerging markets as food prices are going up.

the easiest way to hedges commodities, a broad index which combines agriculture and of course energy. that would be the easiest way. the other way would be to be cautious with the emerging markets exposed to these risks. haidi: there is so much enthusiasm and the consensus seems to be china is a good way to hedge if you are worried about a fed misstep. do you see opportunities there and gains materializing? adrian: china has outperformed but on the offshore markets, we are still neutral. we would like to see a bit more progress on this one in

particular. it could be a bit more forceful. i think there are good elements why china could show up for the next couple of months. if you look at credit stimulus, the growth is set to re-accelerate again. there are still a few headwinds on china which we should not ignore. the onshore market that we actually see, other banks like the fed are going to hide. haidi: we are seeing a return to volatility when it comes to the fx market. is there something else that

play? how do you get that out? >> this year will be more of an alpha year. what we see in terms of the fx volatility is a diversions in central bank policies. that is something that can be captured, so we have cleared central banks which are in the heightening and tightening cycle, including the fed. the boe, for example, and the rba. you have other central banks like the boj which are probably lagging. so that is something we have

started to patch up in our portfolio. shery: always great talking to you. we have an alert on the bloomberg -- south korea now reporting daily covid cases topping 90,000. the -- this only coming after a month when we have seen around 5000 daily cases and now we are seeing it topping 90,000. in the previous 24 hours, we've seen them top 50,000. so it is a phenomenal rising covid cases as we continue to see the omicron variant spreading around the country. let's get to vonnie quinn with the first word headlines. vonnie: russian president vladimir putin says he's hoping for a tipple medic solution to tension with the u.s. and its allies. speaking at the kremlin after three hours of talks with the

german chancellor, he announced a partial pullback of thousands of troops stationed near the ukrainian border. he warned moscow will not wait forever for its demand that ukraine not join nato. hong kong reported 1600 new cases and 5000 400 per luminary in fact -- infections. more testing workers are being deployed. global media report hong kong may be quarantining in hotels into isolation facilities. there are 44 hotels available for such needs. prince andrew has agreed to settle a lawsuit in which he was accused of sexually abusing a 17-year-old girl introduce to him by financier jeffrey epstein. court documents show prince andrew will make a substantial donation to the charity of the accuser and declared he never meant to malign her character. he avoided a trial that would have brought further

embarrassment to the monarchy. 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: take a look at some of the movers in japan. at the highest right now since november of last year -- they are going to be selling their china average venture stake or ¥115 billion, expecting to book ¥39 billion in terms of gains. remember karen reported earnings given that they beat alice estimates and pulled from myanmar following a military coup last year. they will be booking a gain of 39 million. haidi: let's look at some of the

movers here in australia. market stories we are seeing in this part of the session, minors performing not terribly well in the session today, down by 1%. earnings down by 2.5%. that has been outperformer and -- outperforming year-to-date. cso enjoying a bit of a boost after it was upgraded. treasury wine looking to see, treasury conditions could improve. the company has been hit hard by the ban on australian wine. we will be speaking to the ceo

of airbnb. the online marketplace beating the street on demand. we will get his thoughts on travel trends amid the growing surge. >> is day two of the airshow and we are getting ready to welcome the tropical weather. coming up, we are talking about how honeywell is getting impacted by supply-chain disruptions. boeing had said if russia invades ukraine, we could see a shortage of titanium. keep it here with us. this is bloomberg. ♪

shery: airbnb pete revenue and profit estimates in the fourth quarter, bucking a resurgent wave of covid-19 infections and heading into this year stronger than before the pandemic. let's ring in emily chang to a standing by with the company's ceo. emily: airbnb in many respects doing better than it was before the pandemic. the ceo is with us now. why do you think this is? how is airbnb beating its own record and even before we were in a global pandemic? brian: the reason we had our best year in our company's history is probably to reasons. number one a, our model is adaptable. however travel changes, we are able to adapt and one of the big things we are seeing is people are staying longer. because been you people don't have to go back to the office

five days a week, people are going to thousands of communities all over the world, staying for weeks, months, or entire seasons at a time. people are starting to return and go to cities, so that has been a huge tailwind. but it really comes down to our dna. at our core, we are a design-driven company. joe and i went to design school and last year, we did over 150 innovations that touched every aspect of service. i think that explains why we had our best year in the company's history. emily: i believe you are living on airbnb this year. you are joining us from miami with your new puppy, sophie. any learning so far about what needs to be changed, what is working or not working about long-term stays? brian: i am absolutely taking notes and i sent a list of notes

to my team. it worked quite well. we made 150 upgrades. one thing i learned is it is important to have really good wi-fi, especially if you are doing earnings calls. the more you work out of the home, you want to make sure you have more amenities. i feel like the longer you are away from home, the more you want to have the comfort of home . a lot of us are going to educate hosts about how they can continue to accommodate people that are not just traveling but living for weeks or months at a time. traveling with the dog is quite interesting. i've chosen airbnb's that have backyards and pools. so i bring sophie, she is a seven month old cold and retriever and i feel like travel is a good education even for dogs. emily: i'm requesting some pictures of sophie after this. microsoft called people back to

the office february 28. it is happening. when more people do go back to work, inevitably, what does it mean for long-term stays? brian: i don't think ceos are going to determine whether people return to the office. they might determine it for a short time. we are all competing for the best. even if people do return to the office, all you have to believe is you are not going to go back five days a week. maybe some people will be like me, living pneumatically. if you have kids come you can't do that, but we think more and more people will work remotely over the summer. we also think we are going to have three day weekends more frequently where they might work from an airbnb and then go away for the weekend. i think we can adapt. all you have to believe is the world has changed.

i don't believe we are ever going backward. we are going forward. if the world were to go back to the way it was, it would be massive tailwinds for us. emily: when is the international travel boom going to happen? when do we get back to that? when you look at asia, where things happen tougher to open up. brian: obviously, that question is best answered by health experts because they would be able to give the best guidance of when people will feel comfortable traveling. what we are seeing with cross-border travel is growing. it is a third of our business. at our low point, it was only 20% of our business. before the pandemic, it was 50%, so we are starting to recover. i'm not going to speculate on the health crisis but the longer

people can't travel -- the longer you don't do it, the more you want it. i think people can only stay home, only watch so many shows on netflix before they really want to get out of the house and i think there is a yearning to travel all over the world and i think you will see more international trips even before the end of the pandemic. emily: prices are going up, we are seeing inflation and the average rate going up on airbnb. how much higher does it go? brian: there's a number of reasons why. inflation is contributing to prices increasing but this is an important point. the primary reason the average daily rate went up and that was good for our business, is because of a mix shift. the average daily rate in asia

is lower than north america, so we had a shift toward north america and europe at a mix shift from one and two-bedroom places for people traveling for business to entire families looking. there bucking 3, 4, five bedroom homes. so that's the primary reason it is going up. emily: you recently solicited feedback on twitter and the top suggestion was crypto payments. how much progress are you making and wind is it going to happen? brian: it is the number one request. at least four people on twitter. we are as promised, looking into crypto payments. i don't have anything to announce right now but i will say a couple of things. number one, i don't think people realize airbnb is one of the larger payment that forms on the internet. we've handled 330 billion

dollars to our platform and we are well aware that one of the big cases is to be able to handle money in a lot of countries where they don't have robust banking systems. airbnb is one of the most international countries on the internet. every country, north korea, iran, others -- there's a lot of opportunities. i don't have anything to announce but the ideology and values of crypto community and economic empowerment are familiar to us and our community over the last 14 years. emily: you recently had an interesting series of tweets with the fox ceo, saying i believe with a little dose of sarcasm that we might have to build the whole internet over again. is it more hype that reality? what does it mean if we can just go to a homeowner directly and don't need a platform? people are buying virtual plots of land and virtual properties.

where is it going? brian: it's hard to say where it's going. i don't think anybody could have guessed in the mid-90's where the internet was going. i don't think we are going to build -- rebuild the internet. it is pretty decentralized. but i think the technology is exciting and there are a lot of opportunities. i think of entrepreneurs building on the blockchain -- if you are a web three business, you are in the community business. if you financial eyes the communities, the stakes get higher. the other thing is being able to adapt and change is critical, but when you build things that are immutable and unchangeable, you have to be thoughtful about what changes you are going to hardcode in. at the end of the day, all that matters is do you provide incredible service and a great value to other people? whether it is this world, web three or any other dimension, human nature applies to all of

those. emily: we are all waiting for those crypto payments. great to have you back with us. heidi, i will send it back to you. haidi: the airbnb co speaking there with bloomberg technology's emily chang. you can check up on any of our past interviews or dive into any of the securities at the bloomberg functions. you can send us instant messages during our show. this is bloomberg. ♪

shery: more headlines on the ongoing pandemic with nbc reporting the cdc will be easing indoor masking guidelines as

soon as next week. the report saying we are expected to hear from the center for disease control and prevention as soon as next week. hong kong continues to struggle to contain a covid

>> as far as hong kong is concerned, we need to find our own way out of this epidemic. i would have to say very clearly that we have no plans for any widespread lockdown as you have seen in some of the other places. shery: the hong kong chief executive on the virus search. chinese local media reporting president xi jinping is calling on hong kong to tackle covid by all means and the government must take responsibly for the

outbreak. for the latest, we are joined by our managing editor for asia. how bad is the situation in hong kong right now? >> we've seen a huge increase in the number of cases when you compared to what hong kong has been seen previously. more than 1600 new cases every day and they are making contingencies to free up some of the quarantine hotels for people in isolation and we are hearing hospitals are overwhelmed, mostly because of this policy of automatically hospitalizing elderly and young people suspected of having covid. very much a crisis state in hong kong which they are trying to grapple with, which makes this words from xi jinping as relayed by the newspaper in hong kong quite interesting. it really shows that they want

to show this as elevated to a pretty high level and the top guy is watching this and invested in the way hong kong responds to this and, which is quite key in this commentary, the efforts and resources of the central government at hong kong's disposal. haidi: it seems to include the strictest of measures. ruling out lockdown yesterday, what other tools to they have? emma: there is a lot of tools. we talk to men on the street -- that has been china's modus operandi in places like wuhan at the beginning of the outbreak, but with outbreaks in beijing and shanghai, most recently contained by other means.

you get the feeling that is the sort of approach they may take with hong kong. if they did lock it down, it would be the biggest symbolic place china has locked down, so it would be a big deal, with much greater density and the way people live there and the friction and opposition to the government. it could be a powder keg if they decided to do that. what options do they have? they seem to be looking at targeted lockdowns where you lockdown a community or apartment block until you have tested to the point where you have read it out all the virus cases. looking at wastewater in order to do that. haidi: emma o'brien taking a look at some of the options that remain on the table for hong kong. with chinese data do in the next

hour, past pressures for producers and consumers eased last month. let's get a preview of what to expect with their chief asia correspondent. what are the expectations and what is the environment policy makers to operate in? >> consumer prices are expected to come in around 1%. food prices have come down a long way, in particular, pork prices. that should offset energy costs. gas prices also going up. on the producer side, also expected to be easing of the pressure there, flowing to 9.5%, reflecting some of the commodity prices. it would suggest china does not have enough at the moment and

that would give the authorities the -- this is the kind of environment where they could do this. inflation and monetary policy in china it -- [crosstalk] shery: you also have the fed ready to hike rates. >> the question becomes how long the window can last. inflation is low, the economy needs our support. some economists saying that would put pressure on china's currency and might even tempt money to leave china, but it is worth remembering there are changes this time around, mainly the index inclusion, that means investors are locked into the

investment they have in china, so we might not see what we saw in 2016 when there was the divergence at that time. haidi: our chief asia economics correspondent there. commodity prices are a big part of that story. iron ore has been hit by beijing's curves. despite a choppy market, he is optimistic about strong demand china. >> not a great half operationally, coupled with high commodity prices has allowed us to deliver first-half warnings. in terms of the commodity price outlook, we expect we've got another billion ton plus with chinese steel production. that's some of the positive signs we are seeing.

what we are seeing play through in terms of near-term dynamics on iron ore pricing is regulators making sure the activity is properly playing out, particularly what they focus on speculative activity. at the end of the day, price will be determined by supply and demand. given the outlook we have seen for the demand side of the occasion, given scale production and supply-side constraints, that will provide a measure of support to pricing in we are well positioned in that regard. we have developed a better product suite in terms of quality, including a recent product called south flank. good outlook for iron ore in pricing bodes well for the business here. haidi: what is bigger and more

impactful for you -- the fact of the property market is slowing at or -- or that we are expecting more infrastructure? >> in respect to the property market, yes, there has been some slowdown but we've seen an easing of policy relative to some of the expectations that existed in the last half. the easing of policy is a net positive combined with as china moves into the new five-year plan, and expectation around the focus of economic stability, growth, and potential for more infrastructure spend bodes well for the economic outlook in china. but what we are calling for in terms of steel production is matching what was there the year prior for the last few years. we think that in itself is a positive.

haidi: it was the outside dividend that was the price for shareholders. how are you balancing that return for value? do we expect a special dividend to be possible? >> the dividend we declared is well above our minimum ratio. we returned 22 billion u.s. dollars over the past 18 months. we are continuing to reinvest in the business, so we brought a couple of projects on in the past year. we sanction of the first phase of the jensen development in canada. there is capital being reinvested both to sustain the business and to grow. under the same time, given the strong operational performance and strong orchids we have asked

-- strong markets we have experienced, that has allowed us to generate significant returns to shareholders in the form of dividends or a payout ratio above the 50% minimum. shery: let's now get to vonnie quinn with the first word headlines. vonnie: u.s. do surprise data bolstering the case for the federal reserve to be more aggressive raising rates. cpi rose above 9.7% in january reflecting brought increases across several categories. it indicates inflationary pressures in the pipeline remain intense and will continue to filter through into final cost of consumer goods and services. the top police chief in canada's capital has reportedly stepped down after drawing criticism for its hands off approach to end site -- anti-vaccine advocate protests. image traders continue to hold up traffic into major crossings even after the prime minister used emergency powers to end

blockades. ottawa police have been reluctant to use powers, preferring -- more than 112 million people watch the super bowl, 16% jump from last year. the championship game was seen by about 99 million people on nbc, 11 million on streaming services and 2 million on the spanish-language network, telemundo. it was the most-watched super bowl in five years. 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, back to the singapore air show where honeywell's aerospace unit is pushing for more asian companies to embrace autonomous flying. this is bloomberg. ♪

haidi: asia's largest and most influential aerospace gathering is it second day. it brings together corporate executives to seal deals across the region. our chief international correspondent 4s they -- four

southeast asia is right there. >> the aerospace industry grappling with the range of issues, including the pandemic and supply chain disruption. let's get insight from the honeywell aerospace ceo of the region. the same that it -- it's a shame we are not meeting face-to-face well but the company mentioned supply chain disruptions and give us a sense of how honeywell aerospace is getting impacted by all of this. haslinda: this -- >> you've got to be honest -- what has happened over the last year's demand continues to grow in aerospace as it does the many other industries and we had some earlier issues with some of our supply base that had their structure during covid and now with demand growing, they are

just catching back up and they need to supply critical components. you've seen some, but it has not been major. we've been able to support all of our major customers in the right way. we think the imbalance will right itself by the middle of the year. we've seen this before in these cycles and we are seeing a little bit now. we look forward to a full recovery in the next six months. haslinda: might disruptions be made worse if russia were to attack ukraine? we've heard from boeing that titania and supplies make it worse if that would happen. our you assessing the situation? steven: we are very careful to have multiple sources of supply wherever possible. i can't opine on that, but we have sources where that might be an issue and we don't think that's going to be a threat to

our supply base. haslinda: what about covid 19 -- china's covid-19 zero policy. has that had an effect on your manufacturing in china? steven: not in a material way. in the past six months, it did not impact our airspace business . now we are seeing when they have a bit of an outbreak, they do incredible mast testing -- they test the whole city within a few days and if we have a factory there, it will take some people out of work for a few hours and we are able to pick up the capacity with people willing to work on the weekend to pick that up. it has not materially impact our supply chain and it is actually good the way they are doing the mass testing. it's a matter of a few our disruption and it gets things back on track. haslinda: how is it all playing

out -- where are you seeing recovery? steven: we hit the bottom in the february, march of 2020, so it has been two years. it has been coming back gradually month by month in three different sectors. domestic china came back really quick about a year and a half ago. it's not quite where it was in 2019. but it is play close to where it was three years ago and international china is going to be constrained for a little longer as the country continues to be careful about cross-border flows in and out of the country. we are seeing it pick up recently -- travel lanes seem to be working well, bringing more people out of singapore and other parts across the region.

we've seen japan and australia beginning to open more. malaysia, vietnam and others will follow. it has been a slow and steady recovery since the bottom a couple of years ago. in the past three months, people figuring out how we get to the endemic state and we think we will see more progress and get back to normal by early 2023. haidi: we are expecting deliveries on the carmax 199 this year. how much do you expect sales to be wrapped up from that aircraft? steven: the latest is they will get a certificate that means the aircraft is good for commercial flight. that will happen this year. they will make the first deliveries to chinese end of their major airlines here in country at the end of this year

and will be able to fly commercial flights late 22 or early 23. honeywell has a lot of content -- the exhilarating power unit, flight control, navigation systems. we are proud of the work we've done in the past decade on this and we will continue to benefit from that commercially and we will see that start in the middle of this year going to next year as they ramp up that program. it is a similar pattern that we saw what the smaller plane they did about five years ago. so we are excited about the see 919 and -- the see 919. -- c 919. haslinda: when do you expect the aerospace industry to get back to pre-pandemic levels? steven: we think it is probably

2024 before it is 100%. a lot of that depends on all the countries around the world feeling comfortable with opening their international borders. 2024, we are hopeful and we've seen a lot of great progress the past couple of years and it will continue throughout this year and early next. haslinda: hoping to see you here at the next air show. thank you so much for your time. haidi: coming up, mainland markets tuesday -- after pumping in more liquidity to support the country, we will preview what to expect at the open. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines -- u.k. regulators have told hsbc to examine how it reports credit risk. the relation authority as instructed the lender to commission a review. it involves bringing in a consultant to analyze the regulatory reporting. singapore bank reported income

-- better-than-expected results driven by loan growth. the overall operating environment has stabilized with the worst of the pandemic over. the south china morning post reporting the dharna is planning to hire a thousand people for an office in hong kong that would support delivery of mrna vaccines. moderna is talking to hong kong's government about getting approval for its mrna shots. shery: mainland stocks got a shot after additional liquidity. for more on what to expect, let's bring in our chief china -- >> this second month of

injections from the pboc, the preview flowing with the company by a rate cut which is more exciting than we saw yesterday. it's a clear signal from policymakers that they will keep liquidity in the financial system. the mls is a one year policy load so there is concern that boc with us withdrawing the liquidity they had injected to seek lenders through the lunar new year holiday. it is replacing some of that with much more sticky liquidity that we will see lenders to the whole year. more is expected. we could see a rrr cut as soon as this weekend a key policy meeting starting on the sixth of march. a lot to watch out for before then. a positive signal from the pboc and another sign of support for the equity market that is supported by the securities

regulator will do everything to prevent market volatility. and we have the national team of chinese stocks as well. another reason to stay calm onshore. haidi: our chief china markets correspondent ahead of the open. let's look at some of the stocks we will be watching when markets stock -- start trading. morgan stanley says expects loan growth for hong kong lenders to remain under pressure this year. it also says improving net interest margins will be driving stocks. we are also looking at bear makers. kirin selling its stake to partner for $994 million. coming up in the next hour, ubs giving a preview of that china's

inflation data for the overall chinese market. plus a family office sounder tells us what he expects the u.s. interest rate curve to flatten further and short-term rates rising more than longer ones. that's it for daybreak asia. this is bloomberg. ♪

♪ >> good morning from the asia-pacific. it's 9:00 here in hank on -- hong kong. welcome to the china open. yvonne: our top stories this morning. china's january inflation numbers due this hour. price pressures give the pboc some fresh emphasis for policy support. iron ore in focus as beijing ramps up a campaign to stop prices fro