it is almost 11 a.m. in singapore and shanghai. welcome. i am haslinda. rishaad: i am rishaad. let's look at our top stories. stocks in hong kong rebounding on the news the city is considering scrapping its mask mandate and relaxing tests for travelers. recession fears way on markets across asia. meanwhile chinese assets facing a reality check after the reopening rally. elon musk's bank is considering new margin loans. using tesla stock to ease the debt burn from buying twitter. haslinda: the big question in the market, is a recession looming? the bond market seems to think so with an inversion of the yield curve. remember, history shows that inflation at this level can only be brought down with a recession. take a look at where we are in terms of those markets in asia. a lot of red across the board. nikkei 225 down seven times of a

percent. losses in australia, taiwan, but the hsi is extending gains to two and a half percent. it is about the reopening story. we have seen the likes of alibaba, tencent, even country garden showing bullish signs. so you can see gains being extended to 2023. in the fx space, it is about the dollar. the dollar currently rising, putting a lot of pressure on the peso, on the single or and the canadian dollar as well. but remaining resilient, 2/10 of 1% up. it is the best performer in asia for the quarter. and of course, it is about the bond market story. we are seeing yields trending downwards. tracking what we saw in the u.s., we are the likes of cathie wood saying the bond market in particular suggesting it is more worried about deflation, rather than deflation -- rather than inflation, and that the fed is wrong in its tightening.

rishaad: ok, let's have a look at the hong kong reopening's in more detail here as you mentioned. we've seen the territory now being reported, they are going to be opening up in the sense that we will have mask mandates removed altogether, scrapped, if you will. we could be seeing some easing of the testing requirements for arriving passengers. all of this combined with moves by the chinese authorities to soft in their covid stance. it does engender more optimism over the outlook for shares, not just here in hong kong but on the mainland. those mainland shares are trading in hong kong as well. is what it looks like for the open in bangkok. generally speaking, equities are down in this part of the world and there we go. we were just talking about the gain line, seeing another day of strength after just a couple of days of weakness. the dollar falling back a quarter of 1% against its taiwanese counterpart. being flagged as stable and the

dollar losing ground against the rupee as well. ok, well, that is a brief look at those markets. let's have a look at what has been making headlines. first word news wise as we go to vonnie quinn in new york. vonnie: thank you and good morning. sources say dutch officials are planning new controls on exports and chipmaking equipment to china. the new controls would align it with trade rules and u.s. efforts to restrict patients access to high-end technology. on agreement on the dutch could come next month. no final decision has been made. vladimir putin has called moscow's nuclear arsenal a deterrent factor during televised comments in russia. putin stopped short of pledging not to be the first to use them, warning the risk of war in the world is rising. the russian president reiterated he will defend russia and allies with all of the means it has if necessary. european union executives have posed sanctioning moscow's access to drinks to drones.

100 36 individuals and entities are on the list including the russian armed forces and several government officials. the new set of sanctions needs the backing of all new members and officials aim to get that before next week's meeting in brussels. german authorities carried out the biggest ever raid targeting right-wing extremists. officials say a nationwide operation boarded a domestic terrorist group plotting to overthrow the government. or than 3000 german law enforcement officers participated in searches across the country. 25 people were taken into custody including a so-called nobleman ringleader. the former lawmaker and a number of an elite military unit. 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. haslinda: well, it is about that yield curve inversion, suggesting that perhaps a recession is looming.

the big question in the market. let's get more on markets with chief economist and head of market research. you say that too much pessimism is in the market. really? >> i think so. i mean, with regards to the u.s., a recession is incoming. so as you know, the community has been looking for a recession. this year pushed out to next year and in 2024. the u.s. economy is discovering a trend. we have a forecast for this year, 2.2%. consensus estimated 1.8%. in 2023, we were looking around 2% whereas the bloomberg consensus estimate is 0.4%. and this is basically on the back wins of a strong fiscal monetary policy in the u.s.. haslinda: right. sailesh: they have put out

strong balance sheets and udo, the inflation effects on consumer spending has been extremely limited until now. the forward-looking view from what we can see in the economic activity data and fourth quarter of this year, we are seeing a rebound. where is the recession? haslinda: ism came out strong and -- himself is not sure he can navigate a soft landing. he used the word softish. there are uncertainties still out there. sailesh: right. so, the way that i would think about it, that the ism analytically has very limited forecasting power to predict gdp, first of all. second, what jerome powell said, yes, is that it is a soft landing. but when asked the question at the brookings institution press conference q&a, he was mentioning that it is quite

likely, rather than in the last speech that he gave, where he mentioned that it is becoming less likely. so, you know, if you go through the entire one half hours of his presentation to the brookings institution, the tone was that increasingly becoming comfortable with their soft landing view and so are we. rishaad: sailesh, kathy woodward has made a big call such as bitcoin of reaching $1 million by 2030 and also vehicle sales will bring in $10 trillion. has she got it right in your view when she has just been mentioning a greater risk by far is deflation looking ahead than saying serious policy errors are being made by the people at the federal reserve? sailesh: so the deflation view -- i mean, i don't comment on other people's work, but the is we are not heading into a

deflationary world, at least not over the next one to two years. our view is we are likely to stay elevated in terms of core cpi inflation in the u.s.. it in of southeast asia, a bit longer in just early 2023. it would just be going back to trend. future years, back to where we came from pre-covid-19. i would not believe it all that some of the structural factors that have been keeping inflation pre-covid-19 are gone. there are some adjustments but structurally, i think we are headed back to where we came from. rishaad: sailesh, rb seeing any efficacy from these interest rate hikes -- are we seeing any efficacy. we've had the rba saying it is taking longer for interest rate hikes to feed into the real economy. if that is the case, why? and are you seeing anything? sailesh: here's the funny thing.

i do not mean it to degenerate anyone's view, but the bottom line is we have been saying for the past couple of months, the impact -- the fastest move in policy literally took place until fall, right? so we are now having -- the fed has done the most in its entire history. that affect has started showing up in terms of financial market expectations in early 2022. and the u.s. economy went into a technical recession in the first half of this year. so much of the impact has already been felt. and we will be essentially seeing more impact coming through the next set of hikes, where we are expecting the peak to be 5.5% in the first half of next year. so our bottom line view is that the transmission mechanism of

monetary policy to markets, to the economy, is much faster than what policymakers think and what basically market analysts have been thinking. much of it is already in the system, you could say. haslinda: taking a look at china, it is finally opening up, but markets have been underwhelmed, some say perhaps a lot of the reopening has been priced in. i want to take you to our mliv question. have you seen china playing or performing in 2023? sailesh: i think that from a risk reward perspective, i mentioned this on your show, throughout the whole of 2022, the risk reward is tilted against investing in china. so, with respect to your question regarding the reopening covid zero policy, it is, you know, i quote the old led zeppelin song the song remains the same, basically on again off again, lots of uncertainty out there.

we have gdp growth penciled in for this year at 3% and for next year, 4%. that is like what the official number is going to look like. but as you know, the real number is probably around 150 basis points below those numbers, right? so we are looking at next year maybe two and a half percent, which we have been signaling for the last couple of months, it means that the social unrest is going to pick up. and the social instability risk has gone up in china. and from our perspective, that will feed into financial work and performance. this decline in dollars below seven is temporary. the medium-term outlook is basically at dollar being 7.528. those are high-level views and in the stock market, we have been indicating sell china on any rally. the medium-term outlook is negative. and more recently, technically, last week, we mentioned to

essentially short, specifically the china golden dragon index. rishaad: sailesh, always a pleasure to have you on the program. more news coming through. this is from tv reports now that hong kong is set to reduce the isolation time for covid patients to five days. i believe it was seven before, so this comes on top of other reports suggesting the mask mandate could be scrapped and pcr tests at the airport for arriving passengers would be replaced with rapid antigen test instead. monitoring that for you and also looking ahead to what we have coming up on the program with india's central bank vowing to stick with his inflation. the widely anticipated 35 basis point interest rate hike. we will be speaking to eco-research economist for effect who believes a pause is close or the rbis. first though, taking a deeper

look into beijing's progrowth stance. after months of economic turmoil triggered by covid zero policies, that and more coming up. ♪

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haslinda: welcome back. as beijing makes considered steps toward this mentoring its zero-tolerance approach to the virus, senior health officials say that the vast majority of china's population may eventually contract covid-19. meanwhile hong kong is said to be considering further loosening restrictions. rishaad: ok, we are joined by chief north asian correspondent stephen engle. mask mandates have been scrapped.

pcr tests and also this new one just crossing which is that you may well see the new number, covid patients may only have to have five days of isolation. stephen: these are reports from a pro beijing newspaper, state owned, so lending more credence to their anonymous sources. but also a cable that is reporting about the isolation being reduced to five days. this sort of makes sense, given what we've seen on the mainland over the last couple of days, including the big 10 point relaxation of dropping pcr tests to get into public spaces in china. nationwide policy, not individual policies like they had done before for every city coming out with their own relaxations. rishaad: feeling licensed to perhaps do this. stephen: we have had a number of conversations today. there was the initial justification, because of the unrest that we saw in various cities for the last couple of weeks.

but really, the economic impetus is there right now. given that trey it was terrible, so you have external demand an internal demand not recovering at all. you have a slowing chinese economy. and now a rough target being discussed of 5% gdp in 2023. how are they going to get that without relaxing covid zero, which they are not even calling it covid zero anymore? in beijing, they are calling it the flu. rishaad: how do they get to 5%? because even if you had to totally reopen, as this chapter is suggesting that we got 80 or 90% of the population contracting covid, that is going to add a huge drag. eric: to be frank, i do not think 5% is ambitious in my view. it is almost 3%, it is a low base this year. 5% next year is the area to focus and for the next two years. 5% already doubly historically

low, the lowest target for china to have ever set for growth. we signal confidence, have some confidence in reopening. it is going to boost growth. but still relying on growth challenges going forward, the slumping global demand and also the property markets are still going to probably suffer some corrections next year. stephen: is it the age-old cocktail of going back to the provinces and saying you need to deliver growth, growth, growth, growth, infrastructure project, which means debt. eric: i think if the reopening does go smoothly, likely expected in the first half of the year. by the middle of the year it is fully reopened, i think it is not such a challenge. it shows some cautious, they are aware of some challenges. they have to leave some flex ability. rishaad: the zero covid policy

goes away, those things which eventually have been problematic during these lockdowns and everything, they still remain. we are looking at the real estate side of things, also how many more roads can you build to nowhere? eric: also remember that the reopening can be bumpy. considering that we have the chinese new year coming up. future mobility during the chinese new year is a high risk for infection numbers. stephen: do you find it interesting that there has not only been change of policy, but a change of narrative? i mean a week ago it would have been unheard of to have senior officials being quoted in state media, saying that it is in evitable that up to 90% of the population is going to get it. eric: that is beyond expectations. the change in the propaganda change the story so quickly, that is beyond expectation. rishaad: thank you so much. eric from bluebird economics and

stephen our chief north asian correspondent. we got as a result the hang seng on a bit of a tear compared to other equity benchmarks. this is bloomberg. ♪

haslinda: dutch officials are set to be planning new controls of exports of chipmaking equipment to china, potentially aligning there trailed -- trade rules to restrict beijing's access to high-end tech. rishaad: yeah, let's get to global business with bruce. he is with us now. looking at this, it is not asml. this is the company which makes the equipment that then it the chips. bruce: that's right. asml gets about 15% of its

revenue from china and the netherlands and japan, along with the u.s., those are the three largest countries when it comes to producing the equipment that makes the chips. so the most advanced semi conductor manufacturing equipment. the united states has been trying to restrict china has access to that is part of a broader effort to curtail china's ambitions to grow its semi conductor business. the question has been will the dutch go along and if so, by how much? rishaad: big decision-making next month, we've got to remember this company does not in certain parts of semi conductor manufacturing, they make the manufacturing. they are a monopoly. bruce: yes. and so, the chinese actually would like to of course be able to build up their chip industry and they have been trying for many years to do that, but they have not had too much success. so they do rely on the dutch,

and the americans, the japanese, for the equipment that they need. and so, the effort here is to try to curtail that. or has been doubt about how far along the dutch would go with this, but we have heard from u.s. talk commerce officials just the other day, who said talks are ongoing but they made a lot of progress. so chances are we will be hearing something, something in the new year. haslinda: bruce, it's not just the dutch, right? the u.s. has to get other allies in line, onboard, with what it is asking for. it is not so easy. bruce: yes and we have seen some pushback from some european leaders, which is one of the reasons that this still is an open question. so for instance, german chancellor schulz, he went recently to china. french president emmanuel macron has already commented. so we've heard from european leaders like those, they are not quite on board with the idea of

the emergence of these two blocks and having the u.s. on one side, china on the other. and so, there has been some thought that the europeans are trying to find some path in the middle. but it seems that at least when it comes to the semi conductor equipment making policy, that they are definitely leaning more toward the u.s.. haslinda: on top of that, bruce, of course, further risk because the u.s. is trying to push through a bill that will allow taiwan access to $10 billion of equipment. bruce: yes, so this is in legislation that is in congress right now. this is what they call legislation, something that authorizes defense spending for the coming year. it is something that they pass every year and it is going to pass. so, in this big legislation, there is no provisions regarding taiwan. these are the things that, from an earlier bill that was

introduced by bob menendez, chairman of the foreign relations committee in the senate and his counterpart lindsey graham, so republicans and democrats alike. taiwan enjoys strong bipartisan support, so this legislation now comes on the heels of a report that the u.s. is going to be providing more advanced patriot missiles to taiwan. it also comes in a year when the house speaker nancy pelosi led a trip to taiwan. so, more signs that the u.s. is really supporting taiwan, something that will test u.s. china relations. haslinda: bruce, thank you for that update. for now let's do a quick check of the latest business flash headlines. apple is upgrading security protections on its devices, adding the ability to encrypt icloud data backups. alongside imessage and account logins, the advance protection for icloud will see end to end encryption on the storage of icloud backups. it means encryption keys will only be stored on a user's

device, instead of in data centers. negotiations between renault and nissan to rebalance their alliance are taking longer than expected. sources tell us an agreement is unlikely before year end. sticking points of intellectual property and the ev carve out are yet to be resolved. rishaad: ok, just having a look at what is propelling this advance against a fairly dismal market elsewhere. these are the airlines. it is all down to the be opening in china. of course these reports coming through about more easing taking place in hong kong. a lot more on the way. you are it's official, america. xfinity mobile is the fastest mobile service. and gives you unmatched savings with the best price for two lines of unlimited. only $30 a line per month. that means you could save hundreds a year over t-mobile, at&t and verizon. the fastest mobile service and major savings? can't argue with the facts.

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>> in china, reopening could end with it, but the concern one has to remember is that without a more effective vaccine with the

one they have on the low vaccination rates they have in china, we have to be worried that the case count of covid and people that are sick from the workforce will complicate that reopening. >> we see it on the opportunity side of the equation rather than a threat. the reason being that a lot of the issues around supply chains have largely resolved. >> it will be a big bend but gradual. once consumption comes back, we will know that in the next couple of months. it is not the end of the rally there. haslinda: some of our guests earlier commenting on china's shift away from covid zero. a lot of it has already been priced in. rishaad: some say 40%, that was goldman's calls a few days ago. we have the data on the technical chance that they could be overly priced as well. china also coming out and saying they will be asking people to take rapid tests as well,

releasing these guidelines on covid home isolation, coming as we get off of the lunch break in shanghai. positivity after the negative start to the trading day for most of the benchmarks. the bank of china leading the positivity. let's get to sofia horta e costa. it is quite something. nobody knows exactly what is being priced in. we get differing viewpoints on this and there is a reopening, but it is not going to be that straightforward. how straightforward it is is the bet. sofia: and what the pace of reopening will be and how it will pan out. those are the questions still hang out in the market. market wakes up one day, are we going to play the reopening theme or not? today we are thinking, yes, this is the thing that everyone was waiting for. the reopening of the economy is the first step towards reviving

consumption and consumer confidence in china. there are risks to that and you have the majority of china's population has not had covid, so it will be a difficult reopening and uphill battles for revived confidence. for the market, it is the biggest macro trade. volatility, i keep saying this every day along the show, it is the name of the game going forward. the interesting thing is today we are low volume wise, so there is little hesitancy to chase the rally and yesterday there was an enormous amount of volume, so quite a bit of appetite to take profit. that is the kind of trading we get come december. haslinda: four hong kong, we are seeing it outperforming the rest of the region. you have got to wonder whether there is momentum going into 2020 three perhaps suggesting you take a look at the likes of tencent, alibaba, they are showing poor -- bullish signs.

sofia: tomorrow analysts upgraded it after having it underweight for a lot of time. most of that trade will pay -- play offshore. the hang seng index was trading around six times earnings, that is incredibly low. but if you look at the charts, the resistance point there, the hang seng has not broken that in a long time. it is also where the liquidity story is. if you are looking at foreign outflows this year, foreigners and international funds pulled a lot of their china exposure. that is where markets are moving. the pace of the gains we saw in november, people wanted to take some money off the table and it makes a lot of sense. the fact that tencent and stocks

that do not have much to do with the china reopening story tells you this is all about the flow and sentiment and not really about earnings or fundamentals. rishaad: a lot of the things which developed the last three years is still looking at property. these are things which have to be addressed at some stage. sofia: exactly, and the catalyst for risk, they are also there. you mentioned property and there is the tech war with the u.s. and now potentially it is european allies. there is also an overhang of inflation. china has not had an inflation problem yet so there are a lot of risks ahead. the property markets on the supply side, there has been a lot of support and china is looking to improve liquidity conditions for developers, but the demand is not there. are we going to see that flow through to sales and we are not seeing that. rishaad: geopolitics as well,

fears about what is happening surrounding taiwan. thank you. talking of which, let's have a look into what washington is making of what is at the moment the position it finds itself in after that visit by nancy pelosi a few months ago. we get to stories related to that with the first word news with vonnie quinn. >> the u.s. is set to pass the legislation on advancing towards taiwan, even as president biden looks to ease tensions with beijing. it seeks to boost ties with taipei. it also reduces the use of chips produced by certain chinese companies. the senate will take up the bill next week. the x theranos coo gets 13 years in the fraud case. the judge will decide later how much restitution you must pay.

him and the theranos ceo were tried about the accuracy of the testing machines. peru's new president is sworn in after -- she will be the first woman to hold the post. the power grab triggered an immediate backlash with lawmakers overwhelmingly voting to impeach him. the london metal exchange has attracted takeover interest from rivals is the historic institution wrestles with its future. sources tell bloomberg the intercontinentalexchange made an approach by lme earlier this week. while the takeover offer was rebuffed, the company is said to potentially be trying a number -- another offer again in the future.

china has reported an increase in its gold reserves for the first time in three years. the pboc raised its holdings by two tons since november. that makes it the sixth biggest central bank gold horde in the world. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. rish. rishaad: let's get you to some breaking news coming out of india and it is the ntpc preparing for a major push into nuclear power by 2024 -- 2040. this is to aid in the country's push away from coal and try to accelerate towards getting towards a net zero target for emissions by 2070.

this is all coming from people familiar with these plans. india currently has 22 operational reactors. we are talking about a potential quadrupling of that power output. that is a look at that breaking story and what do we have, has? haslinda: nuclear back in focus as they look to decarbonize. development under the twitter front. bloomberg has learned that elon musk's bankers have considered providing new margin loans from tesla stock. sources say the goal would be to replace some of the high interest debt loaded up to twitter during the buyout. su: it was a big drama that played out for months and it closed in october.

it put about $13 billion of debt on twitter. the talk of margin loans that we are being told anchors are discussing is one of several options being considered to ease the debt load. we are told the interest on these loans is about 1.2 billion a year for twitter and many are reporting, we have reported the extreme cuts to staff, the extreme cost cutting, the fact that revenue is lower because of the advertising and questions about advertisers pulling back and due to the uncertainty at twitter, all of this putting twitter on a daily loss, so that heavy interest payment certainly a concern. the banks meanwhile have been forced to fund the entire debt package because of the deterioration in the credit market and the difficulty in selling it. there has been a lot of focus on

tesla stocks. initially, the initial twitter financing package included $12.5 billion in marginal loan commitments that would have been backed by tesla stock, but that was ultimately replaced by additional equity commitments including investors from several different partners. again, twitter stock is in focus him about our sources tell us this is a preliminary discussion between the bankers. there have been no decisions and one of the areas of focus is $3 billion of unsecured debt that has been placed on twitter that has an interest rate of 11.75%. the goal is to ease that burden through a number of auctions that we are told are now being discussed and this comes from people close to the financing discussions. back to you. rishaad: su keenan from new york. we will be speaking to quanteco

research economist vivek kumar who believes a pause in monetary policy tightening is close for the reserve bank of india. more on the way. ♪

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rishaad: very hazy look at mumbai. we are looking at a flat start to the trading day. also having a quick look at some of those stories that investors are watching and the votes for the gujarat and himachal pradesh parties is underway. this is 18 months before a national vote. also his home turf. shares in aggregate firm dharmaj crop guard start trading in mumbai. it is oversubscribed 35 times at the peak. and retail operator landmark cars is holding a briefing on its ipo. this is a deal of mercedes-benz and renault. it will use a faster repay of

its debt. haslinda: there is the bank of india that delivered widely expected 35 basis point increased interest rate increase, but it came out with a hawkish rhetoric that signals at least one more hike ahead. let's take a listen to what the governor had to say. >> headline inflation is moderating and in fact with regard to inflation, i would like to say that the worst of inflation is behind us. rishaad: let's get right into that conversation with vivek kumar, economist at quanteco research. what are you seeing with regards to interest rates and monetary policy on the ground in india? vivek: thank you for having me on the show. interest rates are clearly going up and that is something the rbi

has signaled in certain terms. they are not done with hiking also tells you that there is more room for interest rates to go up. our expectation is that we are going to subsequently use the liquidity challenge to fight the policy signals and step up into the space even further. on the impact, it usually takes about two or three quarters. that is something which is standard. and we will expect that to pay out in the second half of the year, so starting october we will eventually start to see that feed in. so far, the cpi inflation is expected to go back towards the target rate. no more than 6% in 2023. to me, that is the signal of the most important impact of the monetary tightening. rishaad: a lot of people are

expecting them to perhaps turn more of their attention now onto growth. they say growth is resilient and i'm sure they are concerned about it, but what is your high-frequency data suggesting about that? vivek: there are two ways to look at the growth center. one is to look at the annual levels, which is around 6.8%. they came out with the device on that. we at quanteco are looking at levels around that basis for 2023. there are not many countries out there which are currently having that growth expectation. but if you look at the annual number and look at how things stand sequentially, even if you look at what the rbi is forecasting in terms of the next four quarters of gdp growth, we

look at 5.5% or 6%. sequentially, there is expected to be a let up in terms of moderation and that is something which is in line with some of the high-frequency indicators you are picking up. we saw a steep decline in export numbers for the month of october and going forward, the expectation is that this is not going to perform in 2023. haslinda: not just that but also the industrial sector. unemployment at 8%. you have got to wonder with more rate rises expected, is there more risk to that growth ejection even though it has been cut to 6.8%? vivek: that could percolate into the manufacturing sector. what we thousand terms of

manufacturing gba in the second quarter was contracting, and that contraction will likely stay also because import prices are pretty high. it is not just production but the value added for capture, and because factors are not able to move prices to the output level, there is a negative level as well on manufacturing. having said that, that does not mean that production volumes have also moderated. that moderation in volumes is just a fact that the negative number does not reflect what is going on on the ground. are there any linkages? there are because of the manufacturing sector being export oriented. at the same time, the export volume can mark a slowdown in terms of -- and dampened the

increase for appetite in investments. if you put it together, the outlook does not seem to be inspiring as far as the manufacturing sector is concerned. haslinda: how do you see the rupee trading against assumption of how you expect the dollar to trade in 2023? vivek: that is an important point because the rupee, you cannot forget it is just about india but it is also about the global dollar backdrop. the ongoing financial year of the dollar is still 10% up. in this bare drop, you have the expectation of adapting, somewhere close to 3.5% on the consensus. this combination has never been great for the rupee. going into next year, there is some expectation that the dollar

will -- going forward, if india's growth also starts to move forward, the current account deficit, from the rupee perspective it is actually good if growth slows down. this is something that policymakers will generate. they want growth to slow down. so growth slowed down will also be desirable because it is somewhat inevitable because of the marty factors. haslinda: thank you so much for your insights. vivek kumar from quanteco research. let's check how the indian markets are doing. looking pretty flat under that pressure on the back of the inversion of those curves in the u.s. expectations of a recession. we have the reserve bank of india downgrading its forecast of growth for the financial year to 6.9% from 7% previously.

rishaad: i just want to flag this story, mitsui financial is facing a $70 million tax bill from india. -- smsg is facing a $670 million tax bill from india. haslinda: art mumbai bureau chief joins us now. why are they looking to slam sm fg with this fine? reporter: to put it all clearly, when they went through, there were talks that they had to pay $117 million aztecs tax. the indian authorities claimed that is far more than that and it is not just -- it is actually $500 million more than that, so that is nearly 670 million is

what the taxpaying authorities want to put a number on. there is a bit of back story. the back story is that indian authorities have been very famous about putting retrospective taxes on multinational companies like vodafone and that is what the prime minister's administration put onto the attitude last year. just to enhance its business friendly image, but this really comes as a big problem and they will work with the indian government to solve this out as quickly as possible. rishaad: with vodafone not too long ago, on the broader investment climate for the country. anirban: it is not really good news for it because the indian government is looking to cut its

stake in the bank and the japanese lender is looking to diversify in asian markets given there is a slowdown in japan, so if the prime minister narendra modi once his business credentials -- wants his business credentials to be enhanced because it is not the correct time to do this, you have got attacks paying regime here, but then the problem is that this is a nasty turmoil and the fact that india is looking to prepare states in a lot of state-run companies does not seem to be good news for them. rishaad: thank you. anirban nag, are mumbai bureau chief. we will look at markets right after this short break. this is bloomberg. ♪

rishaad: we have got hong kong having a lunch break five minutes from there and there has been a credit session of the index, 2.9% for the reopening basket. overall it is down to various bits of news and press reports generally speaking that the mask mandates may be scrapped and pcr

tests at the airports also perhaps being replaced by rapid antigen tests instead and moves in that direction of easing in china giving some clues. some home isolation points as well. we are on that tear up. haslinda: it is back to reading the tea leaves in asia. we had the inversion of the yield curves and that means the question, will we see a recession? it is a mixed picture in asia and losses for the likes of australia. that is it for bloomberg markets: asia. "daybreak: middle east" is next. this is bloomberg. ♪

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caroline: i am caroline hyde.