haidi: good morning. shery: welcome to "daybreak asia." stocks in asia are set to follow wall street lower. the u.s. says the russian attack on ukraine may be imminent. it warns of false flag event.

japan eases its entry ban. haidi: let's take a look at the start of trading insignia. this is what the staggered beginning to the session looks like. we are seeing risk off sentiment going into this final friday session. we are still in the thick of earnings. geopolitical concerns are dominating. we had equities sinking and a lot more interest when it comes to safe haven demand for bonds as well as gold jumping on the deepening worries around the eastern europe security situation. the 10 year yield holding steady. chicago nikkei futures are

unchanged. we are looking ahead to the reopening of australia's borders next week. also winding back the last covid-19 restrictions in victoria and new south wales spite case numbers in the thousands. the aussie dollar pulling back dust a tad. shery: we are not seeing a lot of movement right now when it comes to the future space. this after the s&p 500 slumped. we had tech and communication stocks leading the declines in the wall street session. not a lot of moves when it comes to treasury futures. the 10 year yield dropping below 2%. the safe haven demand being pushed higher with the likes of gold, japanese yen, swiss franc all up in new york. not a lot of movement because we also had oil declining despite

the threat of economic sanctions that could disrupt global supplies. there's a bit of push and pull right now and not a lot of certainty on where things are going. that's get more on the tensions in ukraine. this is what's leading to the hope for more clarity on the situation. kyiv our information indicates clearly that these forces including ground troops, aircraft, ships are preparing to launch an attack against ukraine in the coming days. shery: moscow is still denying the claim as propaganda while secretary blinken offered to meet sergey lavrov in europe next week. for more, let's bring in jodi schneider. why does president biden think that invasion is a possibility despite all of the denials from russia? >> we heard from the president this morning as he was getting on a helicopter to make domestic trip.

he said he thought there was false flag operation going on in russia that he believed they could be coming into ukraine within days. he made those comments then didn't offer support from that. right after that, or shortly thereafter earlier this morning we heard from secretary of state who delayed his trip to germany to go to the un security council and address it. he made that specific request to make that address saying he was very concerned this could happen in days. not offering much support for that but saying they thought that kind of false flag operation on some pretext that russia could go in and we heard from people familiar that there could be more troops amassing on the border. russia at the same time denying all of this.

hearing from moscow? >> the same denials with a little added twist that they are saying the u.s. is trying to provoke hysteria. that this is trying to push it back on the u.s. saying the u.s. and allies, but particularly the u.s. is behind saying they would go in. we have no indication that there has been a significant drawdown of troops on the border. at one point, the u.s. and u.k. estimated 130,000 russian troops on the border. russia said they were pulling back some come of what we are seeing no evidence of that. there is this game of words right now. the u.s. clearly is making these kinds of warnings. that was a pretty big step forward for the secretary of state to go before the u.n. security council to request that meeting to make those remarks. it is just waiting and watching. we heard from the ukraine

ambassador -- the u.s. ambassador to ukraine today in an interview, she said that they are concerned but trying not to panic. they are still hoping for diplomacy even as they prepare for the worst but they are trying not to panic. haidi: jodi schneider with the latest. the u.s. is adding to an annual compilation of what it is calling the worst ip abusers. maybe if you shopped on aliexpress before, you may have a gauge of what this is about. what are the implications and what is the statement? >> this list has been put out for the last decade by the trade reps office.

included on this list are alibaba's main e-commerce website. also another added into 19 -- 2019. this highlights with the u.s. government sees as a lack of enforcement and ip protection and rules against copyright infringement and counterfeiting on chinese online shopping websites for many years. it underlines how the u.s. continues to be a source of tension between the two countries. we saw a trade deal come to the end in january and china did not meet the purchasing goals and that agreement and washington is trying to figure what to do about that next. shery: how much does this naming and shaming action help? >> it has helped in the past. when the relationship between

the two countries was more amicable, you did see alibaba try to do more to enforce ip protection on its websites and platforms and try to get itself off this list. in the current climate with so much tension between the two countries, i think it's going to be less motivational, less impactful that the u.s. has added these companies to that list because there is less motivation for the companies to try to get themselves off. shery: let's get to vonnie quinn with the first word headlines. vonnie: the st. louis fed president says the central bank may need to raise rates above 2% to curb inflation. he called for the fed to hike by 100 basis points by july. he also said policymakers need to be prepared for the risk that price pressures may persist. >> if you wanted to put downward pressure on inflation, you have

to get to neutral and go beyond. i think that is a major concern of mine. we are not an a position to do that right now. we have to get in a position to do that. at some point. in case inflation does not moderate. vonnie: police in canada's capital ottawa are cracking down . officials say only those with a legitimate reason can enter the area and unlawful demonstrators must leave. canadian banks are being sent the names of protesters. sources say lenders are waiting for instructions on how to handle their accounts. japan is rolling back border rules. from march 1, new foreign entrance not including tourist will be included up to 5000 new arrivals per day. the prime minister wants to

balance public support against calls for relaxation. global news 24 hours a day on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. shery: our next guest tells us what needs to be done to empower women in the nation the ranks last across latin america for female leadership. up next, the market outlook from ubs. this is bloomberg. ♪

>> people are nervous. >> general tolerance for risk is muted right now. >> particularly with the ukraine headlines. >> geopolitical risk. >> russia and ukraine. >> replacing covid as our worry. >> if russia -- >> another reason why the fed is going to be careful heading into march. >> as a geopolitical hedge. >> anything can derail the fed. >> more tension.

>> all bets are off. haidi: talking about geopolitical risks. our next guest recommends welding geopolitical hedges. he is a ubs managing director. what exposure would you recommend to these hedges not just against inflation, but indirectly inflation as a result of geopolitical escalation? >> geopolitical escalation is a big problem right now along with interest rates, inflation. it's a combination of risks as a point in the market. we go back to the beginning of the year, still looking at exposure to energy, oil, commodities. value. we prefer value overgrowth. we have to stay invested and start rotating the portfolios in these areas.

haidi: when it comes to china, there is a lot of exuberance in terms of treating it as a haven plate which may sound counterintuitive to those familiar with how much volatility there is in that market. have we hit bottom yet? what opportunities do you see when it comes to chinese equities? >> chinese equities, it is bottoming. it has really not gone anywhere in the last few weeks. we feel like a lot of that is going to have to play out in the next few months. it depends on how the policy control if that's going to moderate. if they will find a solution for the restrictions on some of the companies. it is always going to be a good part of a diversified portfolio to own chinese equities but you have to have investors long-term

horizon owning chinese equities right now because it's going to be a while for it starts to come back. we do expect mixing performance on chinese equities this year, it will probably pick up the later half of the year. >> which sectors would you choose? some are being plagued by regulatory crackdown issues. >> tech is still a good area but some of the chipmakers, the more fundamental technologies and also high-yield. asian high-yield is good timing at this point as we see a lot of the property sector crisis has been priced in. at this time, i think in general market sentiment is pretty risk off. anything we own in china or asia, we will have to focus on

the longer-term horizon. shery: does that include japan? we have seen a lot of optimists at least last year go for the cyclical place that we could see in that economy. >> definitely. japan, with the ukrainian crisis, we are still very cautious in international. the valuations are good. it not just in china, but japan. we have to be -- investors have to be very cautious because of the macroenvironment right now. any equities, any exposure international or in certain parts of japan or china, we have to keep it for a longer-term. >> good to have you back. you can get around up of all the important stories that you need to know to get your day going in

today's edition of daybreak. it is also available in the mobile bloomberg app. this is bloomberg. ♪

shery: airbus says it still has a long way to go before rebounds from the pandemic. >> the pandemic is not behind us. we are on the recovery. we delivered last year 611 aircraft. slightly higher than our guidance. it still long way to go to recover they hundred 63 we delivered in 2019.

moving forward but still with the effect of the pandemic. >> what is happening right now? how is it affecting airbus? >> in the last 18 months to two years, we have focused a lot on supporting our customers, reorganizing the protection to adapt to the pandemic situation. moving forward, we are ramping up again in a complex environment for our supply chain and suppliers. the next 18 months will be about managing the situation with suppliers. they are in a complex situation to manage at their end. with access to raw material being difficult. last but not least, finding the right people, the right employees, the skills, the human resources is becoming increasingly difficult.

>> let me ask you about a public standoff with qatar airways. they have been a big buyer. they have been loyal buyers and some people's view. are you ready to lose them as a customer of airbus if that's where this ends up? >> we are in an unfortunate situation with qatar airways. we disagree on an important aspect of the dispute. therefore, we want to defend ourselves that qatar has put a claim against airbus, we have to defend ourselves, but we will work hard to find an amicable resolution because we want to stay with qatar airways. then early speaking, we are working hard to serve customers. that's what we have done in a complex environment and we want to keep doing this moving forward. i hope we can find a way forward with them. >> let's move to the issue of

the 350 paint and flaking happening on the aircraft. how close to fix are you with the qatar aircraft? how close are you to affix with the fleet and how many other customers are being affected by this problem? do you see issues with those customers potentially as well? >> we have a special situation to manage with qatar airways that is linked to the fact that they have taken the decision with the authorities to grant a number of airplanes because of -- to ground a number of airplanes. we think there is no reason to ground airplanes. that's why we have a different situation with other airlines. we're managing the issue. it's not a big issue in the way we are managing other ones with other airlines in a professional way. we have a specific situation

with qatar airways that we need to manage as such. >> that was the airbus ceo speaking with us earlier. where tracking the fallout of the global supply chain crunch. roku's chief financial officer says that supply chain disruptions are a headwind. he also noted that supply chain issues are weighing on gross margins for the company's business. the stream in -- streaming video business -- box >> grain features have been on edge for weeks over the uncertainty in the black sea region. cargo is still sending close to -- spending record amounts of time in transit from asia. one group takes an average of 112 days.

another takes 110 days. both are one day shy of the longest durations reported in the last few weeks. >> not a huge surprise that the ratio of shipments arriving on time is slumping to the lowest in the past five years. bloomberg terminal users can read more about those stories in our newsletter, supply lines. here is a quick check of the latest business flash headlines. a group is said to be considered buying controlling stake in a gas transmission business. the asset could be valued at more than $10 billion. walmart posted fourth-quarter earnings ahead of expectations and unveiled a sunny outlook. it said comparable sales u.s. stores will rise slightly above 3% excluding fuel for the fiscal

year ending 22 any three. -- 2023. a company is said to be nearing a deal to buy dupont mobility and materials arm for more than $10 billion. sources say an agreement could be announced as soon as friday. the unit had attracted interest from private equity firms. shake shack tumbled after its revenue forecast missed estimates. fourth-quarter earnings up to $201 million below analyst consensus of 211 million. shake shack says it's returned to pre-covid sales levels depends upon customers coming back in high traffic areas. haidi: let's take a look at australian shares. we had a risk off sentiment overnight. the further development of lack of progress when it comes to the escalation of u.s. russia

ukraine tensions. sending investors into the preference for haven demand. we are seeing extended losses for the asx. health care is the biggest loser. across the board, materials and angels utilities all sing declines of close to 2% for some of those traits. chicago nikkei futures keeping its head above water with a downside in new zealand as well. we will be watching the yen to see if that weakness would get a lift to the equity session. risk is playing out ok when it comes to the aussie dollar credit trading at just shy of $.72 u.s.. coming up, japan is easing some of the strictest border control measures in the world but taking on political risk. this is bloomberg. ♪

shery: we are getting the latest numbers for the country. inflation .5% coming in slightly lower and slower than analyst had expected. it is also a slowdown from the previous month. core inflation numbers excluding fresh food saw growth below analyst expectations and also a

slowdown from the previous month. not that surprising we are getting this slowing down of price pressures given that we had a higher base of comparison for last year. fire insurance, accommodation prices and so forth have boosted prices in 2021. now, we are seeing that fate. prices include energy as well which is a big push for inflationary pressures. for january contraction of 1.1 percent which is a faster deceleration than expected. most of last year, we saw decelerating prices encore prices in japan when you exclude fresh food. we have been talking about a little bit of inflation in japan, but nowhere close to the doj inflation target. haidi: i think what is happening with the pandemic has such big bearing when it comes to those

price pressures. rolling back the border control measures. sophie, what are now the practical consequences of this decision for people entering japan? >> unlike some of its asian peers, japan never pursued zero covid possible -- policy. the borders have been restrictive relative to other parts of the world. nationals have been banned for entering for the better part of two years and that is what will change on march 1. people with visa will start to be able to come in. that will be business travelers, but just a trickle at the start. the entries into japan will be capped because japan requires everyone even japanese people to pass a pcr tests at the airport after they land. that capacity will be boosted on

march 1. it will still be capped at 5000 people per day nationally. they are not throwing open the door. they are widening the aperture. it is a bit of a watershed moment for reopening the border. it is something the business lobbies have been clamoring for saying we need foreign workers and, business travel resumed or japan will be left hind. >> do we assume this going to be a broadly popular move for the prime minister politically? >> it is a bit risky to do this now. you have the business lie but -- lobbies clamoring. the public is saying they are still nervous about covid. this was supposed to be done in november of last year and the prime minister walked back when omicron merged. the public likes to see the strong stance on covid. even now as time has passed and

it is in its ways, 50% wanted the border to remain closed. that something the prime minister can do to give people a sense of ease. here in japan, maxine's -- masks and vaccines are not political pressure points. he needs to make sure people feel safe until that point. his predecessor lasted a year as prime minister and that prime ministers covid response was cited as the reason why he needed to go. the new prime minister needs to keep people feeling safe about covid, the business lobbies have, keep everyone happy until july to get through the election. shery: what are we seeing in terms of omicron cases and vaccination across japan? >> we are in the wave here now of omicron. cases may have peaked in tokyo. the seven day average is trending down.

cases requiring hospitalization and death, those are a bit of a lagging indicator after cases. deaths have been over 200 now for several days in a row. that is a record high and people are feeling unnerved about that. when it comes to booster shots, japan lags behind its peers in the developed world. the government said we needed to wait eight months between the second and third shot. they have tightened that to six months, but japan has 11% of the population with boosters as of this week. the prime minister has promised he wants to get booster -- shots up to one million doses per day. the shots are being embraced largely by people here in japan. haidi: the hong kong government is staying mum on the details of a mess covid testing plan saying only the specifics need to be worked out. it will be a massive undertaking indeed requiring all 7.5 million

residents to be tested multiple times for the end of march. this as the daily infection tally rose to more than 6000 new cases. we are not hearing much of the details. apparently it is still being worked out. what could potentially happen? >> there's lots of speculation on what would entail. this massive testing campaign that you just talked about. seven point 5 million residents reportedly being tested as many as three times. over the month of march until the end of march. we just had the top epidemiologist in hong kong at the school of public health saying this testing campaign could reveal hundreds of thousands of infections from the testing blitz. where were they go? if under covid zero, anyone who

tests positive needs to be isolated. there are already thousands and thousands of people awaiting hospitalization and the media has been reporting we are seeing pictures of people piling up in beds outside the hospital. there is no place to put them. they have been soliciting help from mainland authorities to potentially build a large facility to isolate patients. that is not want to happen overnight. hotel rooms are opening up. new public housing estates are potentially opening up. the hong kong convention center could be used as an isolation facility. it is very difficult to stop the current outbreak. he predicts it could peak early to mid march. where we go from there? we need to start thinking about mitigation factors and the process including home quarantine. the current process cannot continue. isolating every single case. the criticism is coming hard and fast against the government

including some have interpreted xi jinping's comments as encouragement but also criticism that you haven't done the right job. has the hong kong government been caught off guard? has it been complacent or ill-prepared? only that for me to answer. leave it to someone like michael kane, a hong kong lawmaker and deputy to the national chinese people's congress. he says my impression is the hong kong government have been playing it by ear instead of planning ahead. ouch. >> we have seen businesses suffer because of that. what is the specific outlook right now? >> we just had emirates representative on saying business is looking good. singapore airlines numbers are way up. cathay pacific is stuck on the tarmac.

you can see lines of airplanes the hong kong airport lined up. one of the chief executives talking in a statement about the outlook for cathay pacific. they say for the for seeable future, they're going to be flying at about 2% capacity. that is tough to survive. that's my assessment, not his. they are flying on average 797 passengers per day. they have no domestic market to serve. it is all international. it's another high-profile business that is suffering in the wake of these restrictions. it is tough to make contingency plans when you can't fly the planes. shery: that was our chief north asia correspondent. coming up next, mexico brands lack female leadership and boards. the central bank governor tells us what needs to be done to

empower women. this is bloomberg. ♪

this is daybreak asia. the u.s. is ramping up warnings of a russian invasion of ukraine with president biden saying the kremlin is involved in a full

operation to give it an excuse to attack its neighbors. antony blinken echoed those remarks the un security council where he called on moscow to pull back forces from the border with ukraine. he also proposed a meeting with his russian counterpart next week. >> our information indicates clearly that these forces including ground troops, aircraft, ships are preparing to launch an attack against ukraine in the coming days. vonnie: the u.s. has added wechat and aliexpress to its list of notorious markets for piracy. the office says it's putting it on register. it first started promising the annual report in 2011 to increase public awareness.

global news 24 hours a day on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. shery: today we are focusing on women in the workforce. our guest says women's empowerment in all aspects of society is simply the right thing to do. she is joining us from mexico city. it's good to have you back. let me get started with a picture across latin america. tell me about women in the labor force across latin america especially across mexico and how much progress you have seen so far. >> thank you for giving me space to share these thoughts about women's participation and mainly women participation in decision-making positions. i think in general in the world, we are seeing women are being

incorporated in the labor force, but it's not proportionate the way women tend to be promoted to higher positions. this is something that we have to tackle and that within the different areas, we need to take the opportunity of what is the pandemic and the challenges is giving us in terms of opening to a more inclusive economy. specifically, in latin america, it is really sad that there is very low participation of women on boards. on average, it is about 18% in our region. unfortunately, mexico is at the end of the list with 6%. it is unquestionable that

there's a lot of underrepresentation of women in these decision-making positions. >> you mentioned the challenges posed by the pandemic. this has also led to labor supply shortages. female labor participation is becoming more important than ever. does this give a little bit more leverage for more women and more important positions across economies? how can this be taken as an opportunity? >> there are some cultural issues also in the society also with women that tend to self collect and also the women do not take a strategic approach in terms of their professional career.

would you have these different measures so that all of these cultural inputs can be overturned in terms of having a very wide social network for all of the carrying responsibility and also in terms of the formal barriers like the ones in our legal framework in terms of complying with some requisites that hinder women to maximize their potential in terms of their career. it is something we need to work on. it is not only the organizations, it is also the government. it is also the society, because we need to work on the invisible

barriers that come from stereotypes and cultural issues that we are bringing from the very past. >> in your experience rising to your position as deputy governor of the central bank, what was harder for you? the formal or informal barriers or the lack of support for working women? >> a little bit of all of them. in terms of formal barriers, there was a requisite that we had to be present in most of the working area in general and the federal government has been that way. so the pandemic has given us the chance to show that it is possible to comply with all of our mandates and deliveries and so on even without being in the

office. as a woman, a mother, a daughter , we all have responsibilities and all of the flexibility is needed. in my career, this was something that i was able to overcome very much thanks to a family network, a social network. i have been fortunate enough to have been able to combine those roles together. not everybody has that opportunity. i think that women should have all of those opportunities independently of the social and family network. those were the main barriers that i found. in terms of colleagues and the support that i received, i am

also glad to have been so fortunate to have been supported by all of my bosses. most of them were men. this was also something that really pushed me to continue my professional career. >> it seems as though we are seeing progress and mexico. we know you have a new governor of mexico that is a woman. you are the deputy governor there. i wonder how much progress does this represent in female empowerment and given that we have more women on the board as well, does this change perhaps the way that you approach economic policies as well? >> yes, definitely. i really celebrate having the first woman is governor in mexico. this is a very important signal. having women sharing

decision-making is something that puts in perspective, a different perspective. i wouldn't say it's better or not better, but it brings in a much more inclusive perspective in all of our everyday doing. let me share with you that we have a diversity committee and the bank. we also have a diversity policy. we are aiming on one side to maximize the potential of the human resources in the bank. this means the policy is focused on the internal issues. but on the other hand, we are pushing to have the equality perspective in all of the substantive work that the bank does.

regulation, supervision, all other policy issues and decisions that we take. now, we are a board of five members and three of us are women. i guess we will be advancing very much and also with the chief performance indicators that we have and to which we are committed, it is also an accountability tool that is very important to measure our progress. in this sense, we subject ourselves to third parties and in this case, recently in december, we received the recognition from a certification and we made pretty big progress on that and we received the second level certification. i guess we have passed in terms

of advancement. >> deputy governor, it is such a pleasure to have you with us today. more to come. this is bloomberg. ♪

shery: an investment fund may be

about to reignite a debate over shortselling. the president says the world's largest pension fund is set to review its 2019 decision to stop lending shares. tell us about this decision and what has changed. >> two things of changed. number one, he says it has been two years since they made the decision to stop lending shares in the first place. now they have enough data to review the impact it has had. they're going to conduct a study. i wouldn't expect any changes anytime soon. it sounds like it's going to be an involved process as far as reviewing the data than having a debate internally about the impact of it. the other thing that has changed is since the decision was made, they have new leadership.

the president and cfo have also changed. now, they are going back and having a look at the impact that it has had on whether it's the right thing to do. >> tell us about the 2019 decision. that was a shock back then. >> absolutely. it was a monumental decision in some ways. it started the debate on the merits of shortselling. they are not themselves directly involved, but it rekindled debate at the time over the merits of shortselling and the merits and demerits of that practice. he himself has had a lot to say when he was the chief investment

officer about shortselling. >> we will have to leave it there. we are running out of time and we also have to alert our viewers that the u.s. senate passed a stopgap federal funding bill. this is bloomberg. ♪

shery: welcome to "daybreak asia" from bloomberg's headquarters in new york. haidi: asia's major markets have just open for trade. our top stories. stocks in asia are sent to follow lower. deepening worries about the security outlook and eastern europe. u.s. is a russian attack on ukraine may be imminent and warned a false flag event. a false flag event denying plans

to invade. they had its best profit in seven years. the ceo joins us. shery: losses at the open of japan and south korea with the nikkei being led lower by materials and financials. almost every sector right now is in the red. we are seeing a little bit of strength for the japanese yen. we have seen that given this safe haven move on geopolitical tensions and concerns about with happening around ukraine. we did get the cpi numbers out of japan a little bit earlier and it came in below analysts expectations with cpi rising 2% on year. we continue to watch jgb's and ten-year yields. right now the 10 year yield is under pressure, but we have seen that huge rally, especially in the 30 year yields. i was very close to punching

through the 1%. we are watching very closely how far the bod would allow the super long yields to rise. look at korean stocks at the moment because they are losing about 1% and really reversing those two sessions of gains that we had already. we have seen a lot of momentum on the reopening trades given that there was speculation because see more easing of restrictions. in south korea, local media announcing a are extending closing hours to restaurants from 10:00 p.m. to 9:00 p.m.. more easing when it comes to restrictions, but we continue to see the downside pressure, given the broader mood we are seeing in global markets. the korean won under pressure with the u.s. dollar. haidi: we do see that pullback in risk when it comes to the aussie trading session. see the asx up by 8/10 of 1%. the worst performance after its results were watching the biggest gainer after reporting an increase in the first half,

saying that is also considering a share buyback. we are seeing declines the same amount when it comes to trading in new zealand. interestingly, we are not seeing that big a jump when it comes to aussie bonds. 10 year yield looking like we are seeing a pretty modest move despite the concerns over geopolitical risks and how we did see that flock to haven demand a little bit earlier, particularly in the overnight session. looking at the tenure yield when it comes to trading. the kiwi 10-year has a move. heading over to look at some of the other havens that we are watching. gold is a big one, spot gold topping 1900 u.s. dollars. we saw that renewed warning from president biden that that russian threat for ukraine invasion is still possible, and potentially imminent, raising that threat of a false flag event, as he put it. when it comes to crude, unsurprisingly we are seeing oil

and that risk trade taking a little bit of a breather in light of these broader concerns over geopolitical risks. that is very much beating through to potentially what we see as higher inflationary concerns if that risk would be materialized. shery: we are also watching what's happening in the u.s. congress as well as the senate has just cleared its three-week funding bill, and really closely averting that potential government shutdown that bloomed after february 18. giving lawmakers a little bit more time to finish a full year spending plan. this still needs to be sent to president biden for his signature, but this also having passed the house already last week, so this would extend that funding until march 11 in order to keep the government functioning. but remember, the government has been running on temporary spending for quite some time,

since fiscal 2022 began. this latest stopgap bill passed in december is going to expire on friday, and again, we are cutting it very close. we have the three-week funding bill, and there are a few more signs of hope for completing the full year build, so we will have to wait on what happens there. but of course the full year spending packages is still to come. haidi: and does this really just add to the wall of worry when it comes to what investors are contending with, on top of the very busy earnings season in expectations that we might see, profit margins at the fallback. when it comes to ukraine and russia, we heard from president biden saying he sees a high probability of an invasion. we know that the u.s. secretary of state, antony blinken is proposing to meet with the russian counterparts in europe to try to push forward the diplomatic efforts to bring these tensions down.

but of course, we know that western leaders were very dubious about the claim that the military buildup near ukraine had been pulled back or had been diminished, and we had reports suggesting that we actually saw extra troops being added as well. this isn't just an isolated european security issue, we heard that the japanese prime minister also spoke by phone, a 20 five minute phone call with the russian president and he is saying that japan is monitoring these unfolding events with grave concerns and really urging for that diplomatic solution. shery: no wonder this is really a focal point of the g20 in jakarta right now. they are urging people to really resolve these ukraine tensions soon, given that it could affect the economic recovery around the world. the australian treasury talked about this being deeply concerning. but of course, concerns around inflation as always, and we are

seeing more fed speak on this. vonnie quinn with the first word headlines. vonnie: the fed president saying the central bank may need to raise rates above 2% to curb inflation. speaking at an event in new york, he called for the fed to hike i 100 basis points by july, and to have a runoff in the second quarter. bullard said policymakers need to be prepared for the risks that price pressures may persist. >> if you wanted to put downward pressure on inflation, you would have to get to neutral and go beyond neutral, and i think that is a major concern of mine, we are not really in a position to do that right now, but we have to get into position to do that at some point in case inflation doesn't moderate. vonnie: japan is rolling back some of the most stringent border rules in the world. march 1, new foreign entrance will be limited to 5000 arrivals per day.

japan has suspended all new flight bookings in december in response to omicron. the prime minister has entry bands against businesses lobbying for relaxation to let workers in. the u.s. has added chinese messaging platform we chat to aliexpress for its notorious market for piracy. the u.s. trade representative said the two platforms facilitate counterfeiting, putting them on a register that includes baidu's wonton. they first started publishing the annual report in 2011 to increase public awareness and help market operators. police and canada's capital are blocking off downtown ottawa in a move against anti-vaccine protesters who have been occupying the streets for nearly three weeks. officials say only those with a legitimate reason can enter the area and unlawful demonstrators must leave. thanks and canada are being sent the names of protesters.

sources say lenders are still waiting for instructions on how to handle their accounts. 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. ♪ shery: take a look at the movers. cryptocurrency related stocks under pressure, given that bitcoin continues to lose ground, even in the asian session headed towards the $40,000 level. this could fall below 41000 and testing its 50 day being average for a wild, given renewed fears over ukraine. and this is weighing on risk assets, and we are seeing those korean and japanese crypto related stocks under pressure. the technology is up more than a percent. but there has been a lot this week. global financial regulators saying digital assets could soon threaten financial stability given their skills. that report came out earlier in the week. haidi: watching petroleum really

surging this energy price boom. the breast -- best profit in seven years. they are seeing a little bit of modest upside in the session today. white a bit of downward pressure from the pullback in the oil market at the moment. they have been merging with the oil and gas unit. the company is also talking about a 30% cut in 2030, but has come under criticism for that target and for its progress that's being made. at that nick -- net income of $2 billion, our consensus are at 14%, really showing what a striking reversal when it comes to what a fortune it is to the previous year, which was a $4 billion loss as we saw the impasse at the start of the pandemic on the collapse in economic activity as well as energy demand. so we will be getting more details on how sustainable these growth expectations are from the ceo about the company's upcoming

move, as well as this climate later this hour. the u.s. as a russian attack may be imminent in his warning of a false flag event. moscow denies plans to invade. this is bloomberg. ♪

>> the most immediate threat to peace and security is russia's looming aggression against ukraine. the stakes go far beyond ukraine. this is a moment of peril for

the lives and safety of millions of people, as well as for the foundation of the united nations charter in the world space international order that preserves stability worldwide. president biden: they have not moved in move more troops and. they have reason to believe that they are engaged in a false flag operation. every indication we have is they are prepared to go in attack ukraine. haidi: u.s. president joe biden in the secretary of state antony blinken on the situation of ukraine. for more on nato allies, let's bring in at -- bring in our bloomberg -- we continue to hear from the president that an attack could be imminent. moscow continues to refuse that. i guess there is some engagement

going on here. >> as we heard president biden refer to a false flag operation. the concern is what's going on currently on the ground and ukraine. so the ukrainian government said russian back separatists that increase their shelling of the ukrainian army that there were almost 40 cease-fire violations and said that the separatist had hip buildings including a kindergarten and had injured several civilians as well as ukrainian servicemen. the russian backed separatists accused ukraine of cease-fire violations and said that they were just firing in response. to be clear, the allegations are frequent and there has been an increase in this activity and that is a concern as we heard president biden said the u.s. believes that russia would use things like this as an excuse to go into ukraine. the kremlin in response had

dismissed these warnings and accused the u.s. of whipping up tensions. shery: we have heard from policymakers at the 20 really urging de-escalation around ukraine. what are we seeing on the diplomatic front? >> there still are efforts on the diplomatic front, u.s. secretary of state antony blinken has proposed to meet his russian counterparts in at europe. he also has proposed having additional discussions via other forums such as the u.s. and nato foreign -- the nato russia council, i'm sorry. and we also know that you were -- european union's agreed to a package of potential sanctions and it's something they announced that the foreign policy chief announced, and he said that those would include energy. to be clear, russia has said

repeatedly that their troops are withdrawing from the border, and that they will continue to draw down as the military exercises with belarus conclude this weekend. our bloomberg -- shery: our bloomberg reporter with the latest. it would be sensible to add more defensive exposure amid those risks. let's bring in head of asia investment strategy at j.p. morgan private bank. good to have you with us. the where and how would you add those exposure assets? >> good morning, primarily through health care. we look across the global landscape and we see it continuing in the upside and see a change in terms of market price with the fed hawkish and us. we have become more cautious in the near term, while overall equity is higher by year and and we have stocks and bonds.

we do think it's prudent to add things with health care. health care it is more defensive with earnings and valuation perspective and looks to be one of the more attractive sectors globally. shery: in the u.s. we are almost done with earnings season. 70% of s&p 500 companies have reported already we continue to hear warnings about profit margins. what are you seeing across asia? and is there any sector or region that you like a more? >> we are coming down from margins that are at historical highs for the pandemic. it's natural for margins to come down. you are seeing some pressures from higher costs in inflation and the u.s. from higher interest rates. in terms of region we still do prefer develop markets. so we think there is a bit more earnings clarity and growth momentum's in the u.s. and

europe. in asia we prefer japan. these evaluations being attracted. we see policy being more stimulative than restrictive. we also see more of an organic recovery as we get through covid and it has panned out for us for a number of reasons. haidi: what is the long-term output again in this market? alexander: from a sector perspective, we have japanese banks. we see banks benefiting globally. japanese banks have higher treasury yields. we also think that domestic recovery in domestic tourism and domestic consumption will pick up as well as restrictions are lifted and this labor is quite serious. but as the curve comes down from a case down perspective, we should see more domestic recovery in domestic consumption. haidi: the u.s.-china monetary

policy decoupling has been one big investable theme. do you still think that the stopgap is playing out and is that really where the opportunity is? alexander: that's one of the key questions facing markets this year. just like inflation is a key question for home markets in the u.s.. for china, whether or not monetary policy and the economic cycle can really be coupled with the rest of the world is really the question. historically that has not necessarily been the case. you will not see in china when the fed is tightening. and right now, they are on the path of tightening in the cycle looks much different. whether or not they can do that or whether it is in line with what they need as the fed is on the path for a tightening cycle, it will be a key determinant of how chinese markets perform. we can't see large rate cuts in

large liquidity because of the risk for depreciating. that is it key question. we think they can decouple a bit, but not entirely. haidi: alex wolf, head of asia investment strategy at j.p. morgan private bank. the are watching intel at the moment, seeing 2022 growth margin up 52% in a negative free cash flow. we are hearing from the cfo. the intel expected revenue to rise by a percentage in the lower single digits this year. growth picking up in later years as well as we see the pursuit of this turnaround of the chipmaker. when it comes to this, it needs to climb to higher single-digit percentage by 2020 three and 2024. this is happening at an investor event taking place in san francisco. analyst have been looking at growth up 3% in 2023, 8% i the time we get to 2024.

but really expecting some confidence when it comes to the acceleration and delivery of that turnaround. when it comes to the full year of the growth margin, 53% in line with expectations, adjusted revenue at 76 billion dollars, a little bit higher than expectations and full-year adjusted etf's at $3.50. just slightly higher than what consensus was expecting. coming up next, the u.s. has added platforms run by alibaba and tencent with the most notorious abusers of intellectual properties. details are just ahead. this is bloomberg. ♪

haidi: we chat in the online

marketplace have been added. this is part of the annual competition of the worst ip abusers. let's bring out our bloomberg trade reporter. one of the indications of this for the company and the broader trading relationships? >> sure, this is the latest in number of moves that we have seen by the biden administration two, and there were told china accountable on trade. they've made a lot of accusations, as have passed demonstrations about china's unfair practices like industrial subsidies, and this one goes after e-commerce not -- e-commerce and online marketplaces. the impact that counterfeit goods that are sold in aliexpress, which is part of alibaba, and $.10 we chat, which has more than one billion users globally. counterfeit goods and intellectual property theft that

happens behind the goods that are sold in these marketplaces. so these are two new additions to this annual lift. shery: there are so many different grievances when it comes to china, chinese practices. but other efforts are we seeing from the white house and congress right now? >> sure, we have seen in the house passed version of this semiconductor in china competition bill, which has more than $50 billion for semiconductors, it is included there, and outbound investment screening process, which would look at u.s. investment in chinese companies. we have also spoken with sources who have talked about the possibility of a new section 301, that was the probe of chinese trade practices in this case, potentially industrial subsidies that was used to apply hundreds of billions of dollars on chinese imports, more than

300 billion dollars of imports annually still facing those tariffs, and so some pretty serious moves potentially from the biden administration to confront china, particularly on its failure to comply with phase one of their trade deal agreed to years ago to buy 200 billion more in products. shery: bloomberg's trade reporter with the latest on actions against china. a quick check of the latest business headlines. nestle is warning its profitability may slump for a second year. ceo mark schneider says shipping costs are likely to jump even more this year than in 2021. an espresso maker forecast sales growth slowed to about 5% in 2022. he told bloomberg he's optimistic for a growth in the midterm. stocks drop showing a continued lack of net loss.

it was eight cents a share in adjusted earnings for a missive to cents a share. the software company said covid related restrictions are cramping business, especially in europe. coming up, how do you test an entire city? that's the

shery: standard chartered is planning to hand $750 million to investors for share buyback despite missing estimates. the cfo says growth in china has been really strong, but the asia focus lender sees challenges facing its hong kong business. spoke to bloomberg about the outlook. >> generally we have seen customers that are at 6% last year. so all of it is growing.

hong kong businesses are almost exclusive because of the interest rate with the 10 to 15%. very strong combination. china and singapore in the asian market and it showed up. it's a spread that we can withstand the ups and down adding visual points in time. >> they are moving some of their equity people out of hong kong. are you actively talking to any of your staff about moving to singapore or here to dubai because of constraints -- the social constraints. is it getting harder to their people to stay in hong kong and active discussion to see people here are in singapore. >> generally we are not. we have a very good business in hong kong and it's a huge part

of our overall activity see and we have built very committed to the workforce. obviously there will be some of the restrictions that have been a little bit more and places. so we are very focused on hong kong we think hong kong and the china region will be great for us. haidi: andy halford speaking with bloomberg's manus cranny. a mass covid testing plan is saying only the specific -- specifics need to be worked out. it would be a massive undertaking requiring all 7.5 million residents of the city to possibly be tested multiple times before the end of march. this comes as the daily infections rose to a record high of more than 6000 new cases. for more, let's ring in our

chief north asian correspondent stephen in hong kong. this comes as we hear from chinese state media about these stowaway cases from hong kong going to the mainland that have halted flights from beijing to control these infections. so it feels a little bit like whack-a-mole when it comes to rain and these infections. what are we hearing about the hong kong situation? stephen: there are so many questions about what the plans are for this mass testing as local media has reported 7.5 million residents will be tested, perhaps multiple times. the problem is that we had top hong kong epidemiologists and dr. been on bloomberg television earliest -- earlier this morning and he said, you can't really control this, you can't stop this current outbreak. and he said this mass testing campaign, which would it completed until the end of march

anyway, could expose potentially hundreds of thousands of cases. in his question is, under covid zero policy, where would they all go because you have to isolate them. already hospitals in isolation facilities are at capacity. even some patients in the hospital beds outside of the hospitals and what i might say, some of the coldest days of the winter in hong kong. it's not snowing, but it is not pleasant. this can't continue he says, as far as isolating every case. so it raises lots of questions and he said this current wave will likely peak before the testing would be complete. the peak could be mid to early march according to dr. kelly. in one last thing, there's other criticism of the hong kong government's approach so far and why they got caught off guard. have they been still prepared or complacent? don't ask me, i won't give my

opinion, but listen to michael, the lawmaker and legislative council in hong kong's deputy to the nationals people congress in china. he says, my impression is they, the hong kong government, have been playing it by ear instead of planning ahead. shery: we are getting the latest numbers out of south korea as well. the coronavirus cases in the past 24 hours topping 100,000 for the very first time, another daily record, 109,831 more cases. 385 critical patients, 45 debts -- deaths. and this is at a time when they are extending closing hours from 10:00 p.m. to 9:00 p.m. it seems that south korea is learning to live with covid, but thoughts not the situation across china and hong kong. completely the opposite of what's happening there and businesses are suffering.

stephen: the doctor says it is time to start moving to mitigating processes and not necessarily completely living for this, just having the mitigating factors in saying you can't contain. there has to be some sort of home quarantine. i would just use one example quickly because cathay pacific had a statement talking about their january low factor numbers and it's not pretty for the airline here. it's been bad for them. emirates is talking about return to profitability and business looking good. another competitor, singapore airlines is flying at nearly 2% of pre-pandemic capacity. hong kong's cathay pacific, read the numbers, flew 24,600 99 passengers and all of january. down 99% from 2019 levels in january. that 797 passengers a day. it's operating just 2% of pre-pandemic capacity. the chief customer and commercial officer said, we have had a very difficult start to

2022. we are not seeing any pickup and passenger demand. shery: stephen engle in hong kong, our chief north asia correspondent. all hong kong's covid situation worsens, singapore is going to detail its post-pandemic future in its budget on finance. the finance minister is expected to focus on rebuilding finances by raising the sales tax for the first time in 15 years. for more on this here is our singapore viewer. what are some of the key analysis we are expecting in the budget? >> good morning. the key an announcement is the expected height and the gse. as the first time that they are going to do it. it's well anticipated but the key question is when do it. that's the key thing we are looking out for. also, foreign labor, we are looking to see if there are any changes in the front and how they could continue to stay open

and bring in labor for singapore. at the same time recognizing that there is's local satisfaction. so how to balance that. we are looking in to the taxes in the country to address inequality in expecting taxes to be high. singapore it's higher, so this is expected to go up as well. haidi: this comes as a -- at a crucial time as singapore pops out what the next steps are to reopening its way out of the pandemic. >> for sure. it is a critical time, it's going to be very significant. the finance minister is seen as one of the front wall runners to succeed the prime minister. so it will be interesting to see how he will have a unpopular tax

hike to the public and explain how it will be done. it's also going to be scaring the country after pledging 100 billion in the second quarter. all of these will be key. haidi: that's the latest on the singapore budget there from our singapore bureau chief. of course we will continue to get more details on that. let's get you to vonnie quinn with the first word headlines. vonnie: the u.s. ramping up warnings of a russian invasion with ukraine with president biden saying the kremlin is involved in a false flag operation to give it an excuse to attack its neighbors. u.s. secretary of state antony blinken echoed the remarks at the un security council or he told moscow to pull back its forces on the border with ukraine. he also had a meeting -- has a

meeting next week. the canada's capital are locking off downtown ottawa in a move against vaccine protesters. officials say only those with a legitimate reason can enter the area and unlawful demonstrators must leave. banks in canada are being sent the names of protesters. sources say they are still waiting for instructions on how to handle their accounts. former president donald trump and two of his adult children have been ordered to testify in a civil investigation after a new york state judge were -- rejected the request to block a subpoena for their deposition. trump, donald trump, jr. and ivanka trump now have 21 days to testify in the new york attorney general's civil probe into the fraud evaluations at their company. 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. shery: a group of 20 finance chiefs have gathered in jakarta. we are talking about the g 20 meeting in central bank governors meeting. they had online meetings in order to address some of the biggest challenges to the post-pandemic recovery. as much as the prices are looming as a threat, bloomberg global economic policy editor kathleen hays is here. we heard from the indonesian president as well. kathleen: they are the host nation and he is welcoming everyone. you know they are going to talk about the pandemic, recovering the pandemic, uneven recovery, jumping up as a major threat. very interesting today when he welcomed guests online and actually coming to jakarta from around the world. he took his time to point out that it's not just about those

threats to the economy, it's about the sudden threat looming for the world economy now, and that is the ukraine crisis. he says it does pose a threat to the global recovery. let's listen to what he says. >> this is not the time for rivalry, nor is it the time to create new tensions that disrupt the world's recovery let alone endanger the safety of the world as it's happening in ukraine today. all parties must stop the rivalry intention. we must focus on synergizing and collaborating to save and resurrect the world to quickly rise and recover. kathleen: the president went on eloquently saying all countries are connected, no one is isolated. he said regions can rise together or the collapse of one can bring down another. australia's treasurers saying it

is deeply concerning, he says a failure to de-escalate the tensions would be disastrous and in economic terms, he had secretary treasury janet yellen a couple of days ago talking about the sanctions on russia if they do invade ukraine, saying that she sees global fallout from them. she is concerned about the energy markets. russia is a major provider of crude oil to the rest of the world. lng, they provide natural gas to europe, this is important. the president of the federal reserve bank of cleveland talked about the u.s. economy. yes it's time to raise rates, but she mentioned in her remarks, she cited that ukraine tensions among the many risks that are facing the u.s. economy , this is suddenly coalescing to me, everyone is realizing that there is a lot that countries and economies are dealing with and now these tensions and the possible escalation trading all

kinds of circumstances no one is sure about. one thing they are sure about is what they can do to their own economy and the global economy. haidi: many central banks are struggling to recover. another threat of hanging over the g20 meeting, particularly as we see more aggressive fed action. kathleen: that is coming closer to us. that is a real threat, if you will. it's something that will definitely happen. that head of bank indonesia earlier this week saying that he was hoping that the global central banks could have coordination as everybody starts exiting from this pandemic era stimulus because you don't want to have it spilling over into emerging markets. why am i showing you the chart, because it shows six central banks in asia. for just met in the last week. the philippines held its key rate yesterday. thailand, india and indonesia held their rates steady. see malaysia holding. the only country in asia right

now that is raising its rates is korea. they've got a stronger economy, they've led the pack. if you look out for many of these countries, aggressive rate hikes setbacks, oil prices are rising that's feeding into inflation. that could's force them to start moving sooner. and if you are still trying to get out of the pandemic, if you still have virus outbreaks, if you still have an economy, it still has room to go. that's not what you want to see. another thing they were warning about this week was tighter global financial conditions creating capital outflows from emerging markets and outflows here again. some of them are well provisioned with reserves, but it's still a threat that no one wants to see. haidi: our global economics -- our global economics and policy editor kathleen hays. they will be joining us to talk about some of the issues around a sustainable world recovery at the g20 meeting. we will be looking ahead to sri

lanka's upcoming decision. central bank governor will be with us. shery: take a look at the broader markets across asia. it's a sea of red right now with the topics losing more than a percent in the nikkei now at the lowest in more than two weeks. the kospi is also down 8/10 of 1%, reversing two sessions of gains already. remember, we have seen the coronavirus cases in the past 24 hours surpass 100,000 new cases, more than 300 cases of critical covid patients as well. we are seeing the reversal of some of the big gains that we saw earlier in the week. remember, we have seen it really have the best day since june 2020 early in the week, but now given these uncertainties over geopolitical tensions, inflationary pressures and rate hike concerns, we are seeing them retreat for the past two days. haidi: take a look at u.s. futures, we had the session that

was dominated by that geopolitical risk and it doesn't look like there's much to be bullish about at this point either. the u.s. ten-year yields are holding at 195, we had treasuries ending that their day session near the session lows with gains led by the belly of the curve. we saw stocks that the rising geopolitical warnings about russia and the ukraine. that crude situation, we see that fallback when it comes to the oil market. the rally really taking a pause as traders take stock of the crisis, as well as when it comes to iran's nuclear deal and the prospects of those talks being revised. oil is headed for that weekly loss as investors way these dueling kind of crises, if you will. we have wti new york crude trading just about $91.50 at the moment. and of course, watching gold as we see a bit of a bump up when it comes to that haven story. australia's energy giant

reporting its strongest annual profit since 2014. we speak to the ceo about the outlook. that's next. this is bloomberg. ♪ ♪

haidi: australia's energy giant released for your results on thursday. shares rose high. oil and gas prices are to a new

-- near to billion-dollar profit, best result since 2014. after a transformative 12 months, the ceo continued throughout the course of the year. she joins us from perth. always a pleasure to have you on bloomberg tv. as we said, a banner year for woodside, a banner year when it comes at the demand side of the story. can you expect these conditions to continue? >> thanks for having me on the program. the energy market has been really fascinating over the past two years. if we go back to when covid first struck, we sought lockdowns and demand risk -- destruction, but over the course of 2021 demand has recovered in some places really started to out pace supply. i think what we are seeing right now is the congruence of a few different factors that demand growth, as the world returns to normalcy, we are seeing affects from all of the stimulus money's that governments have been pouring in. and then we are seeing the

overhang of the geopolitical tensions that are causing a bit of speculative price increasing. haidi: you bring us to my next question, the threat of war between russia and ukraine, the constant pricing that we see being adjusted over the result of that, does that impact your short medium-term outlook? >> i think in the short-term, there is tremendous uncertainty. we look at the energy markets and when we think about investment decisions, we look at the long-term fundamentals of population growth, economic growth, demand for energy. in the short-term some of these geopolitical factors have a more significant role to play, and one of the things we want to do is to make sure we are well-positioned to be able to take advantage of that side of the market. right now we have 20% to 25% of our portfolio that is exposed to gas hub pricing. that's either j km in asia or t ks and europe. do want to make sure we have the

ability to take advantage of volatility in a market when it presents itself. shery: given the potential you are in right now, is there potential for share buyback down the track? meg: down the track, absolutely. we announced a robust dividend payout to our -- we paid out 80% of our net profit after tax excluding a few one-off items. we understand having that value returned to them. as we go down the track after completing the merger with the petroleum business, we will take a look at all of the different levers that return value, including buybacks and make a decision at that point in time. shery: what are you hearing from shareholders on the bhp merger? meg: shareholders are excited. they understand the rationale. they understand that scale matters in this industry.

they like some of the assets that bhp petroleum brings to the transaction. some very significant assets in the gulf of mexico. they like the financial impacts so that the business is coming across with no debt so it will cut us in half and put us in a strong financial position to invest in opportunities, both in the near and midterm. we have our shareholder communications that will go out in april and we look forward to having individual conversations to help people understand the merits of the transaction. haidi: how crucial is it that the reopening of wa happens? meg: we certainly appreciate everything the state government has done to help keep the community protected from the health risks of covid and keep the economy running, but we are at a point now with the 95% vaccination rates where we think the borders need to be open, we need a clear plan to reopen and stay open.

we are seeing the effects in our business, so as we planned the merger with bhp petroleum, it's an impediment to our team to travel back and forth to meet with counterparts. you're also seeing the effect and our people, we have seen people resign because they just missed their friends and family too much to live in other states. we are seeing mental health strain on our workforce. we do hope to have a clear communication from the government about a reopening plan so that our people can get the certainty that they want from their life. haidi: when it comes your operational management, how well-placed are you to be able to deal with what is an expected jump in covid cases? meg: we have been working this extraordinarily hard, from the very early days of the pandemic. understanding how to manage our business continuity. and of course our first priority is protecting the health and safety of our workers and the people who work at our sites and

the communities where we live. but the second key priority is ensuring that the energy we produce gets to our customers who desperately need it. we worked our business continuity plans very hard, and i feel like we are well-positioned to be able to transition into an open state. shery: as you look ahead to the next year, how likely are you to see significant divestment supposed merger with bhp? meg: it's a really interesting question. we started some work looking at work folio optimization, but the petroleum business is really dominated by some very significant marquee assets both in australia and in north america. i think the question will be, how does our portfolio evolve over time? are there m&a activities that would logically build out our portfolio? there are probably things where we will say, we need to take a look at reducing our equity stake but i think we have a good foundation from which to build.

shery: woodside ceo and managing director, thank you for your time. that's it from "daybreak asia", at our markets time continues as we look to start a trading to shanghai and shenzhen. this is bloomberg. ♪

david: happy friday morning. welcome to the china open, i'm david ingles with yvonne man. yvonne: i'm yvonne man, that's right. top stories this morning. a russian attack on ukraine and moscow continues to deny any plans. markets under pressure from rising geopolitical tensions. investors