♪ haidi: good morning and welcome to "daybreak: australia."

i am haidi stroud-watts in sydney. yvonne: and i am yvonne man in hong kong. chinese president jinping warns of tough challenges as a country enters its next phase of the covid fight with an economy in a major slump. haidi: more countries are acquiring pre-arrival tests of chinese visitors after the verse dampens new your market optimism. and beijing's new foreign minister six better ties with washington. secretary of state anthony blinken says the two sides need to keep communications open. haidi: it feels like we have started every year with so much uncertainty the past three years and yet some semblance of optimism. some of that is signs of the china reopening seems to be dissipating in the markets, but there is so much to look forward to. we have for administering speak that will hopefully give us an indication as to how the fomc is feeling about the rate hike path ahead. that will be one big factor in

terms of how 2023 turns out for the markets and for the economy, the global economy. but the other thing is china. yvonne: yes, the first trading day of the year. you mentioned how china plays this reopening story will be the key driver of whether we will see a turnaround. take a look at asian stocks, worst slumps since 2008 when it comes to equities. and the china economy data still looks pretty bad for the fourth quarter. look at the pmi's over the weekend when it comes to manufacturing and nonmanufacturing. the weakest number we have seen, reminiscent back to 2020, early days of the pandemic. certainly a lot of questions. how rocky is this first quarter going to be? the peak of covid is the story as well, still of a top story here because we have heard from the president in a new your address, xi jinping saying that

tough challenges remain in china's fight against covid. breaking weeks of silence after the turnaround policy. he is more from xi jinping -- here is more from xi jinping. >> with extraordinary effort, china has prevailed over and presented it challenges. it has not been an easy path. we have not entered a new piece of covid responds were tough to linda's remain. -- where tough challenges remain. yvonne: it has been weeks of silence from the president after they make this big event when it comes to covid zero. walk us through one of those key takeaways from his address, john. john: it's important that the president is alleging how difficult this experience has been for many here in china. also important that he acknowledge the difference in opinion. he did not address the protests, but he acknowledged some people thought the country should do or handle covid differently, but

ultimately, the president saying, we will achieve victory in this process, trying to drum up support for the way that china is exiting covid, saying that with the country is doing is scientific and appropriate. so trying to accomplish two things -- acknowledging the pain, but also trying to instill confidence in the country getting through it. haidi: we have also seen a slew of various travel restrictions on travelers from china, hong kong, and macau, a lot of those starting this week, especially in australia. has there been much reaction to that, given a lot of these countries have essentially no covid restrictions? john: that has been a little bit. not that great. partly it is because one china is still requiring visitors from overseas to get a covid test as well. and also the spread of the virus

in the country, there are so many who are still sick, we have many reports of deaths at funeral homes and hospitals, and that has been preoccupying everybody here, instead of the travel. knowing that from january 8 there will be no quarantine for those coming in, knowing that the government will be handing out new passports, i think that has been happy news for many people who have not been able to travel the last two years. yvonne: there's quite a bit of doubt on how strong the recovery will be from china, especially in the first quarter given that many countries will not be able to benefit as much from the consumption recovery now, given these travel restrictions. john: i think the first few months were always going to be tough, things like absenteeism as workers who are sick don't go to the factory or the shop or the bank even. but as we get past these waves,

i do believe, the general expectation is for the economy to come back very strong. the government is doing more, too, it has opened, the covid restrictions have been lifted. people nick gordon stanley -- morgan stanley and goldman all raised their forecast for 2023. haidi: we also have a new foreign minister for china, and there was already a phone conversation with the u.s. secretary of state looking for better ties. this is the critical relationship for another year, going into 2023. are there prospects that with the change in the leadership, we might see more of a detente? john: there is some optimism, but a great deal of caution about that optimism as well. we had the meeting between president xi and president biden at the g20 in december and there has been follow-up with the new foreign minister, who used to be

the u.s. ambassador, so he knows that relationship well. he has been the person who has expressed some of the mildest opinions, communications from the chinese side. we expecting secretary blinken to visit beijing this year. so having that conversation over the weekend, setting up that channel of communication i think is a good sign, though at the same time, you have so many problems -- taiwan, covid, trade. there will be a lot to work through. yvonne: jonah new, thank you. our greater china senior executive editor joining us from beijing, john liu. ticking along at markets set up for 2023, seems like we are doing with the same headwinds. although hopes for. a turnaround are there when it comes to the fed. we are starting off 2023 on a negative note.

nikkei futures are slightly lower. you saw the korean session yesterday, one of the few markets that were open, a lot of concern about south korea. . they are the latest to impose testing requirements for china travelers. there is a risk aversion being found in the yen, just to hitting the 130 level for the dollar-yen. new zealand is lowered 0.6%. aussie futures, though, still a touch higher. we are coming of a drastic, horrid superlatives not just in pmi numbers out of china over the weekend, but also h-shares, we saw a third straight decline, the third longest moving streak we have seen since its inception in 1994. haidi: haidi: china bulls are still holding onto hope. let's get to paul allen in sydney with the first word headlines. paul: south korea's president has ordered his government to

devise stronger incentives to drive its chip industry. he is having the country spend billions on semiconductor policy support. a bill passed last month that included a smaller than expected tax cut for corporations and, an independent lawmaker has told bill burck that south korea needs to step up support for domestic production of chips. >> i believe holding technological supremacy is the way our country can take the lead in any security related agendas, such as diplomacy and defense issues, without being swayed by other nations. that is a legacy we should hand down to the further generations. paul: president yoon says his government is in talks with the u.s. which would mark a significant shift in a policy to deter north korea. pyongyang record up tensions recently, testing missiles and

preparing for another nuclear test. hong kong is planning to resume quarantine-free travel with china as soon as january 8. the chief secretary wrote in a facebook post that travelers will initially be subject to quotas. he says the frequency of sea, air and land transport to the mainland will rise to meet demand. australia's market suffered a big decline as a big decline as sharp interest rate growth hikes put off investors. the national home value index fell five point 3% in 2022, the first decline since 2018, and home values could fall further this year before stabilizing after interest rates peak. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. haidi: as president xi warns of a tough covid fight in china, we will ask the center for

strategic and international studies whether we can expect any reliable data about the extent of the virus read. plus one company expects the first half of 2023 to be a difficult and volatile environment for equities, but they see the tide turning in the second half of the year. of a guest joins us next. this is bloomberg. ♪

yvonne: happy new year! we are kicking off the year still a negative note when it comes to risk assets. let's bring in shana sissel, president of banrion capital management. we talked about this superlatives, the worst year of global equities since 2008, global markets into turmoil. are you optimistic about a bitter 2023? shana: at him, but i don't think it will happen in the first half of 2023 -- i am, but i don't get to happening the first half of the 23. it will be like 2009 where the first months of the year were rough before it bottomed out.

the drivers for the headwinds of the market now versus then are different, but i think the job market is still very tight here in the u.s., and as long as the labor market stays this strong, the fed will continue an aggressive policy of tightening and that will be a headwind for equities. i also think earnings are really going to struggle as we see q4 start to be reported and also q1 of 2023. we have had some negative guidance. the consumer in the u.s. is not as strong as it has been. all these things will contribute to having a difficult first half of the year, but i do see things turning around in the second half so i am positioning accordingly. haidi: may be part of that equation is also china reopening. yvonne: how do you see this all being played out across the markets? obviously it is good for the services sector, demand for commodities, people are saying there could be a bounce on that front. how do you play that?

shana: it could go a couple of different ways. clearly the chinese consumer will fill the void -- feel the void the u.s. consumer is leaving. so that could balance out global growth. my bigger concern is that the increase in demand we will see just like we saw in the u.s. when we did our full reopening, i expect we will see this in china where there is a lot of pent-up demand for services. and that will also affect commodity markets as we talk about travel and it increases the demand for jet fuel and so on and so forth. those things will push those types of commodities upwards, which actually could be bad news if if you're trying to get a handle on inflation, global inflation. it kind of limits the impact fed policy can have on global inflation rates, especially with commodities which are a major part of the consumer price index here in the u.s.

so we could see some strength in demand which officially is good, but that could also be difficult for people who are trying to control inflation. yvonne: so if everyone is looking at the second half and saying brighter prospects, whether it is for the markets or for china do you see past that bad data that we are seeing right now, that covid infections in china, the travel restrictions across the world? look past that and just focus on buying the dips in these markets, poor stay offensive? shana: i am starting to get out bit more aggressive in my stance. i am taking the opportunity to be opportunistic in increasing my equity data. i am using some liquid alternatives, where i am just increasing the exposure i have to equities while still having a hedge on. their etfs i am using to do that, mrsk.

it allows me to add some opportunity to get some upside if equities go up, but still have a hedge on my portfolio because i am not confident it will happen in the first few months. but if i am wrong, i have some exposure. i do think there will be limitations -- the fed will continue to be aggressive in the tightening/hike cycle. they are fixated on that 5% rate. people think they will cut in the second half of the year. i think that is too optimistic. they may pause, which is a good thing, but i don't think they will end their hiking and start cutting right away, i don't foresee that. so i think there will be some positive things that will happen in the second half of the year that make me want to be more aggressive in my portfolio positioning, but more of my opportunities that i am seeing are in the fixed income markets rather than the equity markets.

haidi: haidi: when it comes to the recession, do you think last year was the worst of it and when do we start seeing improvement? shana: i don't think we are past it, i actually expect earnings and profits to be very difficult, and as we get the q4 results in the next few months, i actually think that will probably have some spill into the q1 results as well. but i think it kind of ends there. i think companies are prepared for this. i am not sure if and when we have a recession, that it would be a deeper recession which i think, most companies are positioning themselves with strong balance sheets and they will ride the wave better and recover more quickly. we are not at the bottom in terms of earnings and profits, but i think we are a quarter or two left of that until we see the turn. markets are always forward-looking, so i think they might start to turn in q2. that is what i am keeping my e

ye on. haidi: it was the worst year for tech since 2008. apple is one of your picks. what is the best there is an seductively comes to the outlook in china. shana: absolutely and apple has been punished as a result. it is trading at a slight premium to the markets, but it is a strong company, over $40 billion in cash. apple will be able to ride through this, and as china reopens, there will be some hiccups, but then you will see increased demand for services and goods and some pent-up demand for some product as it relates to apple. i know they have some new product opportunities, i keep hearing that they want to compete with meta in terms of the augmented reality products. i think new products will be a positive for apple, and i think in the second half of the year,

we are going to see apple's stock reactor that. do i think there is tons of upside? no, but it is a well-run company with strong product, great brown loyalty. 2020 -- great brand loyalty. 2023 might be when i start dipping mato into apple. yvonne: shana sissel, joining us from chicago. taking a look at brazil this evening, where the brazilian football superstar pele is lying in state. this is the football stadium where he played and inspired fans around the road. authorities say his body will be displayed for 24 hours after arriving in the city this morning. they are giving fans and locals a chance to pay their respects to the football legend before he is buried in a nearby cemetery on tuesday.

we believe those pictures there out of brazil. -- we will leave you with those pictures there out of brazil.

haidi: it quick check of the latest business flash headlines. teslas shares fell short of estimates despite offering rare discounts in the u.s. and china. there are maker handed up just over 4500 vehicles to customers, short of the bloomberg consensus forecast, which was for 20,000. the firm came up short of its goal to grow deliveries by 50% last year. the ceo of a chinese ev maker nio says he expects supply chains to return to public next year. deliveries are expected to fall short of the company's target of 150,000 cars. the company was particularly hit hard by the shanghai lockdown

last may and june. >> it has indeed had some impact on us this year. with the process of traders reopening, it is inevitable to be impacted in the region where we are based, and also our supply-chain partners. the good thing is we can see the impact will be gone soon. i am very confident that in the near future, china's supply chain, and the auto industry will return to normal. yvonne: avatar: the way of water is on pace to become -- [laughter] -- i have not seen it but apparently it is the top-selling movie. it will be released in 2022, it has made almost $1.4 billion worldwide since it was released three weeks ago putting the film on track to surpass the 1.49 billion dollars in sales of top gun maverick the highest grossing film of last year. the movie also looks on course to break even financially. the performance demonstrates the

in a duel staying power of the avatar franchise. the way of water did not even have one of the top domestic openings of 2022. and -- i really wanted to read that avatar one. it's going to make $2 billion in revenue just to break even? think of how much money they spent just making it, particularly when it comes to fx. [laughter] [laughter] but yes, the dollar story we are tracking closely. seems like when it comes to the yen you are seeing some strength, given the risk-averse and across the markets. 1.376, strongest level since june. offshore renminbi, we are still seeing strength of 6.9255, still below the 7 handle. the dollar weakness should be good for risk assets. i think we are still in that holiday hangover of people still

coming back from the holidays. volumes could be substantially lower today as well. haidi: yeah. we will talk about china. speaking of that holiday hangover, markets are still trying to grapple with the risks relating to china, covid and geopolitics. coming up next, the center for strategic and international studies joins us for their outlook when it comes to the chinese recovery, president xi warning of tough challenges ahead. this is bloomberg. ♪

paul: you're watching "daybreak: australia." australia's new chinese foreign minister says he wants better ties with the u.s., in a

conversation with the secretary of state of the u.s., anthony blinken. he previously served as china's u.s. ambassador. piece is seasonal get to retain a close relationship with his american counterpart. secretary blinken tweeted that they discussed maintaining open lines of communication. the imf director says one-third of the global economy will face a recession this year. kristalina georgieva said 2023 will be a tougher year than the one that we leave behind. she says the u.s., the e.u. and china are all slowing at the same time, leading to negative trends globally and the outlook for emerging markets even worse. israel has raised interest rates to the highest level since 2008, and will remain elevated for some time. the bank of israel lifted its benchmark 3.75% in line with most forecasts viewed the monitoring committee also adjusted it sees signs of moderation in inflation pressures with an economic slowdown ahead.

moscow's defense ministry says a ukrainian strike on a russian literary flexibility has killed 63 troops stationed there -- military facility has killed 63 troops stationed there. the ukrainian president said on new year's day that russians are right to be afraid because they are losing. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. haidi: with the subsequent spike of cases in china, it has pushed economic activity to the slowest pace since 2020, as countries plays fresh restrictions on travelers from china. the new foreign minister is also in place, managing global relations. let's look at the outlook with scott kennedy, senior director from the center for strategic and international studies. will it be a better year for china?

scott: 2022 was about as bad as they come so if you look at the little bar that was set in 2022, 2023 could be better. now, will it be much better! i expect it to be bumpy, but there are ways in which things can be improved. but there is a crisis of confidence amongst china watchers and think tanks and the business community. a lot of things that china needs to turn around in order to raise confidence by all of us watching. haidi: when it comes to foreign policy and geopolitics, we have a new prime -- foreign minister. it does not change the outlook for you when it comes to the relationship between u.s. and beijing? scott: i don't think fundamentally. his raising to be foreign minister could help. he spent the last year and a half in washington seeing how washington works, what the discussion here is about china.

he has met a lot of people. u.s.-china relations will be his number one foreign policy challenge. plus, he is also tight with beijing. so he has a possibility of being a bridger and helping china come up with policies that could initially reassure the u.s., and also make xi jinping feel like china is not making concessions that they otherwise would not make. i am curious to see what his elevation means to the relationship. yvonne: he has made pretty moderate comments before, saying that beijing should have stopped the ukraine war, downplaying the risk of war with taiwan for example. do you expect a confrontational strategy moving forward from china, moving forward from this, or any update or developments on those two big sensitive topics?

scott: i think the last quarter of 2022, the chinese were signaling that they wanted to lower the temperature in the u.s.-china relations good we saw that by them encouraging dialogue, that was a central feature of the meeting in bali. we also saw them with the u.s. preparing for resident xi jinping's visit most likely in february. we have seen the new appointment of chinext foreign minister and the chinese exiting zero covid. although in a very bumpy rate. some are signaling that they might adopt some economic measures basically in an effort to provide some amount of reassurance to the international community both on strategic and other issues. the question will be whether they will follow through. and whether we will see a genuine change in shift in chinese policy that addresses these worries that everyone seems to have. yvonne: and given how quickly

china has shifted away from covid zero, you are starting to see more and more countries adding more testing requirements and being more cautious about this reopening story. do you foresee more of the world isolating china in this way? shana: it is certainly possible that you will>> see more countries step up>>'also as more flights are reinstituted. scott: china right now has very few flights between themselves and others which is why the number of rights in the foreign countries is low. but china's exit from zero covid has been bumpy and opaque, and the need for data to make good decisions is what is driving health authorities in other countries to ask for testing of anyone coming from china, to make sure that they are not covid positive. we are starting to see the chinese submit more data on the

genetic makeup of covid that they are getting to international authorities, and that might help stem the tide. more information rather than less is going to help to smooth the transition of china's increased interaction with the rest of the world. haidi: because otherwise, this feels like the start of the pandemic. you had a lot of countries including australia and that damage the bilateral relationship, calling for an investigation into the origins of covid, and now the lack of transparency and the lack of the data. you think leadership should have handled the rear putting a different way? to have every restriction abolished in one fell swoop. scott: this may be one of the biggest i told you so moments people convention. the chinese did not even need to look at the u.s., they needed to just look at their neighbors, their neighbors prepared for exiting zero covid with more

vaccinations and greater investment in icus and hospitals and beds and the reputed experience they also provided ubiquitous information about the status of the pandemic and where they were. the chinese new that they needed to do both those things and they did not. they turned on a dime, almost on crisis mode. yes, folks are happy that china has shifted away from zero covid, but they are doing it in a problematic way. . that is the broader question people have about china's capacity to govern. yes, china does not have the political system others would have thought would be better for it, but they thought china would at least get things done, now that is coming into question. it is the big thing we are all looking for now all the way to the national people's congress session in march. can the chinese reassure folks that they actually know how to manage their country and their relations with the rest of the world? yvonne: and i am guessing that

three years of the damage and trust and reputation that needs to be repaired now, it will take a while before business is confident in china and investing in china again. what do you think it is going to take for business confidence to pick up and for a real excellent investment to pick up again? scott: depends on those who actually hundred investing and business in china -- depends on those who have business in china and those who invest in china. institutional investors really looking for broader signs that this is a country going in the right direction, that can they put billions if not trillions on china? it is not going to be questions answered in the first couple of

months of this year question mark it will take longer. it will take a series of positive actions reinforced again and again to change the current mood by the global business community. yvonne: scott kennedy, senior advisor at csis joining us from washington this morning. the former u.s. ambassador to believes the relationship between the two biggest economies is maturing. he tells us president xi jinping was forced to reopen china's borders, to save its economy. >> the earlier covid zero policy worked at first, but then it turned out to be a significant mistake. from rarely his people are upset with zero covid, they have had it. even fundamentally, it is china's economy doing quite poorly. zero covid is a major contributor. supply chain disruptions, ukraine war is part of it. but he has two move to shore up the economy.

he is also looking at the u.s. moving towards more decoupling. could be the u.s. is going to put limitations on u.s. investment going into china, for example. export control measures are being increased. so china sees that and it has to do whatever it can to keep its economy going. he is opening up because he has to. david: from your deep knowledge of china, might there be another possible connection between the coming out of zero covid and the uptick in infections in the economy? by that i mean, before you couldn't go to work and he could not produce things. could they be shaken the confidence of the chinese people , particularly the consumers and investors? reports now that they could have as many as 25,000 deaths a day after the chinese new year from

them all coming back from being with one another. >> there is no question this is all a very uncertain. reporting in china is poor, there is very little transparency, chinese people somewhat trust their government and somewhat don't. it is uncertain whether covid reaction is going to be and u.s. investors are starting to pull back a bit from china and into the u.s.. but there are also expanding their own operations in china because they want to sell to a large market. everybody is taking a hard look at the next couple of days, weeks and months to see what will happen. it is quite uncertain now. autumn line is i think president xi will do what he can to boost the economy. forget china's exports to the u.s. during covid increased significantly because china was providing medical supplies for people staying home during covid and also because the u.s.

injected the american economy with so many dollars. so chinese exported a lot. it will be a challenge trying to boost consumer demand there. haidi: that was the former u.s. ambassador to china, speaking with birds david westin. discussing out of that today as china battles this covid-19 wave in our conversation, with our upcoming guest, a professor at yale university at these times on your screen. you can also get in-depth analysis from our "daybreak" team. you can listen to the redo on bloomberg class or bloombergradio.com. more ahead. this is bloomberg.

haidi: here watching "daybreak:

australia." let's get some morning because ahead of the trading day. one analyst says while inflation has peaked, it is likely to peak up again as a result of government stimulus. the u.s. is in recession by any definition, and the fed will cut and the government will stimulate, and we will have another inflation spike, he said. . in september, he had warned of more ahead in the stock market, saying we hadn't yet hit the bottom. yvonne: meanwhile, talk about chinese stocks, investors are hoping for a better year after 2022. combined losses on the mainland and hong kong reached nearly $4 trillion. one investor group is seeing the market needs to be patient as sentiment has room to improve, but the process could be gradual. "bumpy" has been the buzz word. valuations have prompted a growing number of wall street

banks to become bullish when it comes to chinese equities. credit suisse is the latest to join in, saying that time has come to turn constructive on chinese shares. what does this mean when it comes to north asia is one thing to ask, people talking about the bottoming of the tax cycle, the high-stakes multibillion-dollar business of semiconductors is a key battleground in growing u.s.-china tensions. we break down the fight of global chipper supremacy and the important role of manufacturing centers, including south korea. ♪ >> these critical bits of technology may be the tiniest, yet most exacting products ever manufactured. and because they are so difficult and costly to produce, there is a worldwide reliance on just a handful of companies. access has also become a geopolitical weapon, with the u.s. stepping up curbs on exports to china. it also asks tough questions of u.s. allies.

south korea, home to samson, a powerhouse -- home to her house assume something, has found itself in the middle. the country passed its own version of the u.s. chips act, spearheaded by a lawmaker. >> i believe holding technological supremacy is the way that our country can take the lead in any security-related agendas such as diplomatic and defense issues, without being swayed by other nations. that is a legacy we should hand down to further generations. >> in october, the biden white house imposed tighter controls on trips and chipmaking equipment, part of a longer-term strategy to prevent china from dominating the industry and developing an advanced military, while securing its attack supply chain by enticing chipmakers to set up shop in the u.s. >> we are turning things around in a very big way. >> china has criticized expanded

u.s. restrictions, saying they will hurt the interest of u.s. companies and harm supply chains. japan and the netherlands have agreed to join washington in tightening export controls to china. in response, china lodged a complaint with the wto, accusing the u.s. of protectionism and called south korea, -- headquartered south korea, -- and courted south korea, a key u.s. ally. >> the biggest worry is that companies could eventually move their major basis to america following these requests from the u.s. companies make decisions in their best interests and they preferably to countries where there are markets and better conditions and benefits. then many people will follow. and then, how could our country survive?

i would say there will be in your technological colonialism. >>yang also says i one plays a crucial role in u.s.-china tensions. samsung may be well-placed to fill the gap. in general, bloomberg. >> you can get around about the stories to get your day going on today's edition of "daybreak." bloomberg subscribers can find that on dayb on your terminal, and also available on mobile on the bloomberg it anywhere -- on mobile on the bloomberg anywhere app. this is bloomberg. ♪

haidi: among so many realities when it comes to the china opening, the wild for rebounding global growth and inflation was going to be the return of travelers from trying out the border real ends. now they are subject to restrictions by no less than 10 nations, when it comes to the need for a negative covid test. australia as well. anyone arriving from china, hong kong or macao, will need to within 48 hours of their departure, providing negative covid test. we discovered that actually came

against the recommendations of the chief medical officer, who said that there was no public health rationale to put this in place. but we know there is concern about the lack of data and reporting and the fear of a new variant coming out of china. yvonne: and in hong kong it is interesting, because i think people are preparing for the influx of travelers from china here, especially when it comes to getting vaccines. i went to the pharmacy today? it was costing about $50 u.s. for a box of just panadol. the stores have been cleared of any sort of medication and antivirals, the like. certainly the risk is there. and as scott kennedy from the csis said, because of the lack of data, you are seeing a lot of these countries say, we need to isolate china because this is very reminiscent of what we saw in 2020 as well. it's interesting, in beijing that has not been that much backlash on this, given the fact

that china does require a pcr test even just flying into the mainland. so maybe they are used to this type of thing? in hong kong we have that as well. it was quite different the last few weeks -- i was traveling in singapore and not having to come back and do a pcr test, that might shift take some time. to grasp. but certainly, we will be hearing more about this from other countries as well. haidi: yeah i thought it was interesting that john liu said that there hadn't be that much of the reaction. these countries have essentially zero covid restrictions and certainly not restrictions on travelers coming from other jurisdictions other than china. we will see what happens when china for the reopens. certainly many verifications or what this means for the return of travel. that inflationary impact. our airfares is going to get more expensive, with demand set

up for another bumpy year? yvonne: and are we going to see a consumption boost in economies like korea? we saw the kospi down yesterday because travel, cosmetics, all of these consumption plays that maybe they could have benefited from might be dampened now because of more testing requirements? that could be a limit on how the consumption boost can go up to the borders of china. certainly want to watch as well. i think that will be the big swing factor for the first half. this quick check of the business flash headlands -- tesla deliveries were short of estimates despite offering this comes in the u.s. and china. the u.s. automaker headed over just 405,000 vehicles, short of the consensus. the forecast was for two 5000. chinese lawmaker -- chinese ev maker nio full-year deliveries are expected to fall short of the target of 150,000 cars.

>> my perimeter estimate for the fact of the upcoming lunar new year, i believe the overall supply chain should be stabilized by next march or april. haidi: that is it for "daybreak: australia." but of course, "daybreak: asia" is next. keep it here. ♪

hi, i'm lauren, i lost 67 pounds in 12 months on golo. golo and the release has been phenomenal in my life. it's all natural. it's not something that gives you the jitters. it makes you go through your days with energy, and you're not tired anymore, and your anxiety, everything is gone. it's definitely worth trying. it is an amazing product.

>> welcome to daybreak: asia. we are counting down to asia's major market opens.

haidi: the yen has the highest