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shery: coming to you live from new york, sydney, and hong kong. haidi: we are counting down to the market open. >> australia has just, online. china is reopening borders. thousands of supporters in brazil stormed the congress, supreme court, and presidential palace to protest the election. there are no immediate plans as gave up controlling rights. annabelle: we are really monitoring the action coming through. we could be looking at a goldilocks scenario. the terminal rate might be

slightly lower. big news this morning. ozzie stocks are just coming online. we had seen projections for a jump of 1%. the reaction came through. she restocks in -- kiwi stocks in the gray. the dollar is feeling mixed after that jobs reaction. what is happening with the quarantine arrangements on the mainland is the big news. but also what is happening with alibaba given that jack ma is

ceding control. we have hong kong stocks coming on in a couple of hours. shery: we are coming off the best day for the s&p 500 in over a month. yet to put it into context. we will sail markets evolve. so far we continue to watch the treasury space. we are seeing a little bit of upside for oil prices after the biggest weekly loss in more than a month. really those demand concerns

continue in the oil space. haidi: let's get some more on the china reopening process. the borders are now open. what? >> now we have to see what the economic impact will likely be. the chinese economy has suffered badly. the latest estimates is that we saw these openings yesterday. there were more than 45,000 travelers going in both directions.

it is not all clear sailing for people to travel. a number of countries are popping up to get access. portugal is the latest one. u.k. and belgium. among other nations. to require chinese rivals. if you are going into china or if you're chinese going to hong kong, you must have a negative pcr tests within 48 hours of arrival. there are some restrictions. but this is essentially the reopening of the borders.

this is by all accounts the end of covid zero. shery: here in the u.s. we are watching the path of the federal reserve. officials are seeing that stronger than forecast jobs growth. and the unexpected cooling of wage gains. our economic editor is here with the latest. >> we are pretty sure they're going to hike the key rate. but do they want to slow down a little bit? let's take a look at what they are doing on the payroll side of the report. they were expected at around 200,000. a very solid number.

the unemployment rate fell to 4.6%. that is another sign of a labor market that is still pretty tight. the other side of the coin is wages. it slowed down more than expected in a couple of different ways. the previous month had been 5.1. it was revised to 4.8. wages are cooling-off more than we thought. there were conflicting job signals to a certain extent. do you slow down or speed up? do something more aggressive? the president of the atlanta fed was asked about this. >> i am very open to both.

we got a fair amount of feedback from the community. that the holiday season experience would be a big driver about their expectations about how the year would go. as those numbers come out, we get a clearer sense of how it would move. >> now the focus shifts to the consumer price report this week. haidi: we have more good news expected. will it be enough? >> absolutely. last month the numbers came in weaker than expected. now you can see for the month of december, they were supposed to ratchet down to 6.5%.

that certainly looks like good news. five point 7%. these are year-over-year numbers. let's also remember that the target is 2%. they do not expect to get there this year. but they want to move in that direction. there are signs of inflation. it is much too high. they said they still have work to do. that was before the jobs report. they are still looking for the rate to go up to 5.8%. some of them will need a little more convincing.

this isn't exactly a surprise. if you are an investor, this has perked things up. haidi: the supreme court in the presidential palace in brazil has been stormed by protesters. give us an idea of what things are like on the ground. how swift has the response been? and where do we go from here? >> it is important to note that these protests are focused in other big cities. we saw thousands of protesters.

they were images akin to what happened in the u.s. a couple of years ago. the buildings have been cleared. protesters have been detained. there will be swift justice for all involved. shery: where is president bolsonaro right now? has he said anything? >> he has been silent. he has not said a word. there are people on both sides here in brazil calling for his extradition. there is a lot of very angry voices. tensions remain very high. shery: our brazil government

reporter with the latest. we did have a lot of political drama here in the u.s. as well. after 15 ballots, kevin mccarthy was elected as speaker. we have been talking about coming close to that timing for eight u.s. default. this could happen around the third quarter of 2023. there is not an exact date. but given how long it has taken to elect the house speaker, something that really is not happened since the 1800s. people are concerned about what happens to the state of u.s. politics and the economy.

haidi: they said we should start talking about the debt ceiling now than getting it down to the wire. given that it took 15 rounds to get the house speaker. a lot of questions about the compromises that kevin mccarthy had to make to finally get him over the line. what are the implications of things he had to give up? he could not talk down this faction to get the speaker over the line in the first few rounds. a lot of uncertainty when it comes to how strong his agenda will be and how much she will continue to be hymned in. >> greg abbott has confronted president biden demanding in a hand-delivered letter that the

u.s. act immediately to stop unauthorized immigration. greg abbott says the letter suggests possible solutions including increasing deportations and constructing more walls. the president was visiting texas on his way to mexico city. ukraine has rejected as nonsense a russian defense ministry claim that kremlin troops killed 600 ukrainian soldiers in a major strike overnight. officials say the donbas region was hit with missiles but military targets were not affected. the attack was said to be a retaliation for a new year's day strike. bloomberg has learned that u.s. authorities are probing a crypto empire over colonel transfers. federal prosecutors are investigating money flows between digital currency groups. the sec is also conducting an investigation.

none of the entities have been accused of wrongdoing. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. shery: still ahead, we speak to a key chemical supplier to double chipmakers about their business strategy and expansion plans. do not miss this interview. but first, opportunities in chinese, korean, and taiwanese markets. more on the investment strategy. this is bloomberg. ♪

>> kind of a goldilocks report for the fed. >> bridges are starting to come

down. >> wage inflation is starting to ease. >> they will continue to raise rates at the end of the month. >> 25 basis point rate hike. that still seems reasonable. >> more likely that they go 25 basis points. >> i think they could stop right here. >> we think they get to around 5%. >> the fed keeps pushing a tightening financial condition. >> you would assume they would go a little bit further. >> a harder landing. haidi: reacting to the jobs report. our next guest likes some beaten-down names. he is seeing some ability in asia. how much of your call is about the reopening in china and how

much of it is the tech sector? in the likes of korea and taiwan? >> it is actually a bit of both. we are expecting a big turnaround this year for asian markets. there is still a risk of a global recession. asian markets have been through a severe bear market. the china reopening will be more about that. even the long-term growth expectations for the region have completely collapsed. they need to be much more positive. we are expecting a big reversal. you will find a lot of these

stocks in china. shery: does that mean you're less favorable toward markets that have been the source of a lot of optimism last year? i am thinking perhaps india that i have heard so much about. >> absolutely. we are expecting that to come back sharply this year. those markets have done well. haidi: taking a look at this chart, when you look at the momentum for chinese assets, it could suggest that we stay in overbought territory.

do you think there is still value here? >> we do think there is still value. there has been a lot of interest in the last couple of months. there are some stocks that are already becoming overbought. haidi: it is not growth versus value this year. you are thinking about individual companies. >> we did not think the growth was as valued.

we are sticking to that exposure. we are banking more on the winners. they have suffered a lot in 2022. haidi: the global recession has had a huge impact on where the u.s. dollar goes. how are you modeling that risk? >> we think historically what we have seen is when we start seeing dollars. we have started seeing that the last few months.

there is still a lot of uncertainty around inflation. shery: great to chat with you. you can get a roundup of the stories you need to know today. it is available on our app. you can customize your settings. this is bloomberg. ♪

shery: here's a quick check of the latest business flash headlines. version orbit is set for a space

launch. it is set to climb above the clouds. eisai and biogen has cleared for eight alzheimer's drug. it was approved by the fda. it will cost around $26,000 a year. the drug will start generating profit in the latter half of the second year of the launch. the new avatar film has retained the top spot at the box office for the fourth week in the u.s. even as a new horror film debuted with $30 million in ticket sales. it is hollywood's first hit of the new year. the sequel has raked in 500

million dollars domestically and $1.7 billion globally. haidi: let's take a look at how we are setting up this monday morning when it comes to the start of trading. just about a half an hour into the cash session. we can see some strong gains. australia has been seen as one of the biggest beneficiaries of the china open. we could see a full recovery back to pre-covid levels. the china reopening could add up to four percentage points when it comes to australian economic growth from services, tourism, education, and the like. we see s&p futures this morning demonstrably high. the aussie dollar is still going from strength to strength. optimism was sitting pretty

close to 69 u.s. cents at the moment. we are seeing some strong gains. for materials and real estate and energy names. they are all higher more than 1%. still ahead, sticking with china, we will talk about what is next when it comes to jack ma . could there still be a bumpy road ahead when it comes to reviving the idea -- ipo? these growth stocks have been battling back. this is bloomberg. ♪ these days, our households depend on the internet more and more. families grow, houses get smarter, and our demands on the internet increase. that's why we just boosted speeds for over 20 million xfinity customers, on us. so you get more of the speed you need for day and night streaming.

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saving you up to 60% a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. >> the world bank this morning for the shots was the global

economy into recession this year area small states are especially vulnerable. global growth could decelerate sharply. thousands of supporters of a former brazilian president invaded congress, the supreme court, and the presidential palace. the new president was not in the palace. security forces were able to clear the supreme court of the writers. -- rioters. kevin mccarthy is rallying republicans with pledges on spending cuts and strengthening the borders. the new rules could allow a single member to vacate the speakership.

they want to use the federal debt ceiling as a bargaining chip. the chinese border is reopening. that is sparking a homecoming rush for many chinese adding overseas. they are ditching covid zero. visitors will still need a 48-hour negative covid pcr tests. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. haidi: with the border reopening, many visitors from hong kong are expected to try to get access to vaccines. this is they are not available at home. we have a report from hong kong. >> waves of visitors from mainland china to be coming here in hong kong after border checks reopened for the first time in

nearly three years. many of those visitors are expected to want to their hands on foreign vaccines. leading up to the opening, lines have performed. some hospital websites showing no availability for 14 days. even non-residents are eligible for these vaccines given date meet some req they can also choose to do the private route and pay. they have opened online bookings for people on the mainland to be vaccinated in hong kong.

economists say that boost to growth might be moody -- muted at first. many chinese taken the business to singapore, which happened up -- opened their borders last year. not to mention hundreds of thousands of people have left hong kong. it is estimated that hong kong lost billions of dollars in potential growth because of the city's strict covid curbs. a reopening might not be a big fix to an ailing economy. haidi: we are watching how alibaba comes online at the start of trading on monday. they announced major leadership charges. jack ma is stepping down. talk us through the latest. annabelle: this was quite a huge

announcement from ant group on saturday. jack ma will give up controlling rights of the country. 10 individuals will not have voting rights. that includes the founder, some managing staff. it is a contrast to what we had before. others were acting in concert. they were saying that they will not be affecting the economic interests of any shareholders. it is about injecting more transparency into the company. hopefully something to develop the company. this graphic looking here at what was their glory days when they had a huge revenue. millions of people signing up for its insurance business, among others. it really has been brought to its heels by regulators. jack ma said he wanted to reduce his interest in ant.

these latest changes bring his voting rights to a little bit more than 6%. haidi: what does it mean for ipo plans? annabelle: ant group will be waiting longer. any kind of controlling changes that are happening means that they are on that market. they are prohibited for listing from 12 months. the company has said they have no plans for an idea as of yet -- ipo as of yet. the focus is on business rectification and optimization. really this company has had to make a lot of changes to its business. that includes opening up a payment app to competitors.

and restrictions on ability to lend. haidi: we will be watching alibaba and other tech shares in the coming hours. take a look at this chart. we have seen chinese equities on a tear in the first week of the year. now they are entering overbought territory. the last time it was around that level was when it peaked in february of 2021. we'll see gains of more than about 3%. we continue to watch whether this rally can continue. , we speak to a key chemical supplier about business strategy and expansion plans. do not miss this interview. this is bloomberg. ♪

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>> the tokyo-based company is a key chemical supplier. the century-old company took steps to modernize its culture and strategy. they expect this will boost business of the next decade. haidi: with us now is the chief

strategy officer. can you share some of your insights? >> thank you very much for this opportunity. the economy is slowing down a little bit. we keep investing in the expansion. haidi: there are tensions

between the u.s. and china. i am wondering if you see that as being a risk? >> absolutely is associated with risk and opportunity as well. this will require us to restructure. it will be regarded as an opportunity. at the same time, we have to be very cautious about how look at it.

>> how does it infect -- affect your investment decisions right now? >> we already have some exposure in china. in order to have a relatively independent type of business structure. from japan and from the west. shery: how much business are you seeing in the broader semiconductor space globally? aside from these geopolitical tensions? do you expect demand to go up? >> with the developing product

roadmap, we believe the contribution to our customers will go farther. how we can set ourselves in terms of production is really tricky. there will be some restriction coming along. >> what are you foreseeing? >> it is coming for the highly advanced technology. the u.s. is already explaining that. there are some restrictions for the exports. we are not so sure how this will go along.

they have to be very careful at looking at those. we have to control ourselves. in this kind of a situation. haidi: the yen was hugely volatile last year. we are expecting more resilience when it comes to the currency. i wonder how that will play out for your business. >> your questions about the mobility sector? >> it is very volatile right now. there is a very positive impact.

their weaknesses and the japanese market. shery: tell us a little bit about the overall that you are seeing. >> is that a traditional chemical company.

this is just kind of the beginning. we believe that we can reform the culture. haidi: looking ahead, what do you think is the biggest change japan needs right now? >> currently the japanese economy is an interesting situation. in the past, japan had a unique employment culture. new growth employment. this mindset is being changed. due to the attention toward risk.

or how to realize themselves as a person. the younger generation is looking at where is better opportunity? which company can provide carryover? as an employer, they have some risk. it is a good move. with the new culture, we can leverage this kind of momentum. shery: a very interesting conversation to see that change at your company. good to have you with us. chief strategy offer -- officer. if you missed any part of that conversation, tv is your function. you can dive into any of the bloomberg functions that we talk about.

this is for bloomberg subscribers only. this is bloomberg. ♪ and it's easier than ever to■ get your projects done right.

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latest business flash headlines. ant group says it has no plans for an ipo. it indicated that the founder is giving up his control as the billionaire further retreats from his online empire. the company is offering 10 individuals, including the founder, management, and staff, to have independent voting rights. eisai and biogen have gained clearance for an alzheimer's treatment. it was approved by the fbi -- fda under an accelerated process. they expect the drug to start generating profit in the second half of the second year of launch. shery: the ceo of delta says he is optimistic that 2023 will be a very strong year for travel. he talked about the value of providing free wi-fi on flights. >> there is an underlying belief

that connectivity is what we do. it is no secret that while you can connect anywhere you are on this planet, once you get into the sky, you lose connectivity. it is very hard to maintain. even if you are paying for it. this is about giving our customers something they have been asking for. and wondering about for years. we know there is no place in the world you pay for wi-fi than on an airplane. we needed to fix that. >> a lot of this is coming full circle as part of your big tech plan. you will have to make larger investments. talk us through that. is there a dollar value you can put around all of this? >> we have invested over a billion dollars to bring in free wi-fi to our customers. it is not just the satellites you pay for but also the

equipment, routers. we will be bringing more than just wi-fi. there will be broader entertainment. when you are on board, we have exclusive partnerships with t-mobile and american express and paramount plus to bring quality experiences you can only get on delta aircraft. we talked about this three years ago. the airport and ground experience. have a new lax facility. a new salt lake city facility. a new seattle facility. we are ahead of schedule on all of those projects. once we realized we would be stable and make it through, we accelerated to get this work done. we are a couple of steps ahead of where we thought we would be.

>> i want to get your thoughts on some of the travel trends. particularly with the rebound a lot of investors are looking for when it comes to business travel. >> we are in a quiet time at the moment. i cannot say too much about what we will do read we are releasing a result for the fourth quarter last -- next week. our outlook continues to be that this will not be a short-term phenomenon. there is literally hundreds of billions of dollars in and out of the u.s.. customers want to continue to reclaim it. haidi: that was the ceo of delta speaking with us.

is 2020 three the return of global travel to the maximum intensity? the pre-covid levels we have seen? we know this is a 280 billion-dollar force when it comes to outbound tourism. where are the top destinations when it comes to travel? how much will this revenge travel played out? shery: bloomberg can tell you where to go. we have a very good article. 21 best places to travel in 2023. some of my favorites, i have been looking to going to canada. it is a few hours drive from here. very good destination. very good place to take my dogs. it is not too difficult. haidi: i know for you that he is

paramount when it comes to your holiday planning. he has to be welcomed and made to feel comfortable. some the dutiful destinations on that list. some island destinations. really unusual places like central georgia. the ivory coast is one that features as well. you mentioned canadian destinations. also across europe. madrid is so beautiful. it has been so busy. it will be interesting seeing the return of chinese travel. we are not seen that much of an influx. airlines are keeping flight capacity very tight. the global travel infrastructure is still recovering from the downsides of the global lockdowns. it will be very fascinating and key to the global recovery to see how this plays out. shery: you have to come to new york.

maine is on that list and it is just a few hours drive. explore the finer side. coming up in the next hour, we are live from the greater china conference. we will hear about strategy in the region and the outlook amongst the china reopen. japan on holidays. this is bloomberg. ♪

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>> we are counting down to asia's major market opens. after that encouraging jobs number last week we continue to see u.s. futures extending gains and more optimism given we have the reopening of borders in china with the quarantine requirement dropped. haidi: such a momentous milestone for china to head after three years when we saw these scenes of jubilation and family reunions. when it comes to the outbound piece we still see quite a few barriers in terms of a meaningful recovery. a contribution of global growth. annabelle: we are about the u.s. jobs reaction today. as you mentioned, those changes with quarantine requirements in china. we have the opening of south korea upon us. japan is shut for a public holiday. that means no trading in cash treasury. the yen holding steady. korea does take a few minutes to

get underway. we are going to talk about the major themes waiting for us today including what we can expect to see in the korean yuan. we had seen a advancing in the prior session. ahead of the anticipation of the u.s. jobs numbers and the headline coming through is we could be seeing a goldilocks scenario with the fed actually able to rein in inflation without sparking widespread job losses. at the same time the terminal rate may end up peaking at 5% which is lower than currently expected. we are seeing the strength coming back in to the korean yuan. extending the rally we had in the prior session. japanese stocks trading higher compared to what we had seen in the wall street session. keeping an eye on what is happening in the tech heavy index. the cause deck reflecting what we had in the nasdaq session. nasdaq futures pointing to

higher gains. let's change to what we are seeing in australia. we are one hour into the session for the asx 200. it is down to the reaction to the u.s. jobs numbers. we are seeing that feeding through end of the bond space. the 10 year yield at the bottom of your screen. also what we are seeing in the three year yield as traders recalibrate how large the fed hikes will need to be from here. also what is happening in china given as i said we did have those quarantine restrictions being dismantled for arrivals. ending the near three year isolation. that does indicate we are seeing further signals of an improving trade relationship between beijing and canberra. we are seeing energies, material stocks leading the gains. brent crude likewise trading in the green. haidi: let's get more on the china opportunities with our next guest. a senior investment strategist

at credit suisse. always great to have you with us. i want to throughout this chart taking a look at the 14 day rsi appeared we have seen a number of markets included in the u.s. entering overbought territory with the rewriting. the 14 day rsi above 70 p the last line we saw that it was this overbought was when the index peaked in february 2021. even as we are in overbought territory do you still see further opportunities given every meaningful covid zero restriction abandoned we have to wait to see how the rebound picture plays out? >> i think it is quite possible in the short term we could see consolidation as technicals look overboard when it comes to china i think investors need to take a medium-term approach. keep in mind for the last three years markets faced three major headwinds. covid locked on measures.

estimation of -- decimation of property market. believe it or not, all these headwinds are policy driven. not cyclical or structural in nature. as policy is shifting on these three friends i think there is a lot of upside in the market. we do see further gains in the market. three months, six months down the line we see markets going higher. haidi: we also see fast and furious developments when it comes to the tech and growth regulatory crackdown. you mentioned that as one of the policy driven downsides for the markets. with this news check mark is -- news jack ma is to receive control, are you overall feeling more optimistic about a rebound in tech and growth? >> yes, i think the technology sector could lead the rally in the chinese equity market.

the sector is down close to 70% from its peak in 2021. clear signs that authorities are easing inflations. they want to get the economy back on track. the business models for these companies have not been decimated. they have adjusted to the new environment. they can still deliver that kind of growth. i do see a lot of potential for the technology names. it is going to lead the recovery in the china equity market. shery: just hold on a second because we have breaking news. bloomberg has learned goldman sachs is embarking on one of its biggest round of job cuts ever. this as it locks in on a plan to eliminate 3200 jobs this week. we are hearing the firm is expected to start the process midweek and the total number of people affected will not exceed 3200. more than a third will be from within their core trading and

inking units which indicates the broad nature of the cuts. the firm is poised to unveil financials tied to a new unit that houses their credit card and installment business which will include more than $2 billion in pretax losses. berg has learned goldman sachs is embarking on of the biggest round of job cuts ever as they are eliminating 3200 jobs this week. going back to you, goldman sachs just one of those companies a limiting jobs. it is idiosyncratic which is what goldman sachs usually does but what is this telling us about the state of the broader u.s. economy when we continue to see a mixed picture coming from eco-data? >> the soft economic indicators are suggesting the economy is weakening. the problem is the labor market is still very strong. look at the number of people employed last month. a surprise on the upside. as long as the u.s. economy continues to add shops it is

difficult to see a broad-based recession. what we are seeing in the economy is goods is in a recession. the service sector is doing well. i think we need to see people more -- losing more jobs especially in the service sector. haidi: given where the fed is headed, does this mean china and given what the pboc is doing as opposed to the fed could be the standout in 2023 and are you allocating according to that prospect? >> absolutely. you're going to see a divergent performance in the equity market. as pboc's easing policy, there is a great recovery story after the reopening of the borders. on the other hand the fed is still tightening rates. that is going to weigh on the

u.s. economy. we do see the china equity market outperforming in 2023. shery: good to have you with us. senior investment strategist at credit suisse. we want to recap the breaking news. bloomberg has learned goldman sachs will be carrying out an of its biggest ever rounds of job cuts. we are talking 3200 positions starting in the middle of this week. bloomberg also learning the number of people affected will not exceed 3200. more than a third of those will likely be from within their core trading and banking units which gives you an indication of the broad nature of the cuts, the cuts in the investment bank elevated in the inclusion of the non-front office roles they had been added to the divisional headcount in recent years. the bank still has plans to continue hiring including conducting the regular analyst class including people speaking to bloomberg.

under ceo david solomon the headcount had jumped 30% since the end of 2018 climbing to 49,000. we are now hearing there will be carrying out another biggest round of job cuts ever. let's get to vonnie quinn with the first word headlines. vonnie: the u.s. and e.u. have condemned violence in production and a brazil's capital where thousands of supporters of also narrow broke through security barriers and invaded congress, the supreme court and the presidential palace. the president says the incident is unprecedented in brazil and authorities will hunt down the protesters financial backers per day at least 200 people have been arrested. newly elected u.s. house speaker kevin mccarthy is rallying republicans with pledges to champion spending cuts and strengthen the borders paired on monday the house votes on a new rules package which includes a measure to allow a single member to force a motion to vacate the speakership to a cart the also gave in to the demands from

republican hardliners to use the federal debt ceiling as a bargaining chip. ukraine has rejected as nonsense a russian defense ministry claim kremlin troops killed 600 ukrainian soldiers in major strike overnight. the cool officials say the region was hit by a russian missiles but military targets were not affected. the attack was said to be retaliation for a new year's day strike by ukrainian forces that killed at least 89 russian troops. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg shery: still early in the trading session in asia. the pan is on holiday. let's -- japan is on holiday. annabelle: where just under 10 minutes into trading. australian socks one hour into the session. oddly we are risk on in the session. taking a look at the mx ap. we have the vast majority of stocks trading higher.

22 in the red. as for the sectors moving the most we are seeing that down to what is happening in those sectors that are more rate sensitive. these are some of the biggest gainers today. it is that u.s. jobs report reaction. the expectation the fed may be less aggressive in its fed hikes . and the terminal rate could peek at 5%. a little bit closer than what is projected. we have that is one big factor. as well as what is happening in china. that is the picture for the guest materials stocks in australia. looking to take a look at what is happening in the tech sector. we did see the big jump in the nasdaq. a huge rally in wall street on friday with the nasdaq up nearly 3% and futures pointing to further gains. these are the biggest tech plays that are moving so far at the start of trading. haidi: coming up we are live from the ubs china conference.

david is there speaking to some guests. what is to say about china? not much news at the moment. >> no. not a lot. i am scrambling to figure out what to ask our big hitting guests. there is obviously the china story. it is the greater china conference for 2023. obviously investment bank, asset management, wealth management. the news flow out of goldman sachs. what it means for headcount. edmund koh will be joining us in a couple of minutes to answer hopefully those questions. haidi: we will be discussing the big story. china's economic growth past. opening its borders come scrap and quarantine over the weekend. beijing providing more financial support to households and companies as covid continues to rip through the country. this is bloomberg. ♪

haidi: china's long-awaited border reopening. the final step of the reopening has sparked a rush. bloomberg's asia consumer and health care reporter joins us for more. you see these pictures of him coming, or unit -- of homecoming, reunions and a time for chinese new year. what are we seeing in terms of inbound numbers and how much does that differ from expectations of outbound travel? >> a lot of our reporters were stationed at airports and borders yesterday. we saw people coming back, some for the first time in three years meeting their family members. we did not see a lot more people living china in comparison to the huge influx on the first day

of china's reopening. does signal some long-term suggestions. it would take a longer time for china's tourists to return to world destinations. a lot of limitations as well as limited flight supply. shery: the rippling of the border with hong kong giving rise to optimism of a potential for an economic boost. what are we expecting? >> hong kong has seen a contracting economy for three years ever since protests of covid happen. economists are raising expectations for 2024. the current estimate is 3.3% rise which could be faster than singapore. that would be a significant jump for hong kong given the competition in the region. haidi: what are we seeing any terms of the appetite for travel 'you talked about the fact we have limited airline capacity

but there is also the expectation if you're recovering from covid you are probably not mentally going to be ready to jump back on a flight. what are the expectations being set? >> we have a growing list of countries imposing new covid rules on china travelers so the concern for people who need to travel is there are still a lot of hurdles to make that happen compared to pre-pandemic times. at the same time the domestic economy has slowed down. . that. will take consumption confidence to recover. it will be several months at least before we major significant rise of tourists coming back. shery: the latest on the reopening of china. pboc official saying china's economic growth will return to its economic path as beijing provides more financial support to households and private companies. lumbar economic chief asia economist chang shu joins us

with the latest. what does normal mean in this context given pre-pandemic beijing have its own set of problems? >> we do share some optimism. the economy is going through a bad period. the surge in covid cases had caused severe disruptions in production and energy consumption we do share the optimism in few months times after the winter quarter is over things will pick up both on the production sides and the consumption sides. we do also have some caution over the longer-term view. the consumption side has hit pretty badly in terms of the income, in terms of confidence. and how strongly consumption will come back and how durable that is.

we do see potentially this normal path it can close back to above 5% growth for china. over the longer-term we should watch out what sort of longer-term three the country can sustain in terms of growth. haidi: we have a lot of data out this week from trade to inflation to new money supply and lending. what are your expectations. are we starting to see the impact of the dismantling of covid zero particularly when it comes to the credit pulse? >> this week and next week we are going through -- it is going to be a very ugly picture. we know the covid zero exit started in december and there were a lot of disruptions. we know in terms of credits, the

slowdown was already sharp in november and we could see something even worse for december. in terms of trade data, the global demand is weakening. at the same time, you have the disruptions in china. we are expecting pretty weak data. in cpi we expect some slight easing in cpi data. ppi could be a positive rating of a marginal positive rating. that is more reflective of basic facts rather any strength in production. haidi: so it could take some time before we start to see the reopening at any rebound reflected in the numbers. you can get more on china's reopening. all the other stories you need to know to get your day going. bloomberg subscribers can find that at dayb on your terminals.

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shery: ant group says it has no plans for an ipo and will focus on its business after jack ma gave up controlling rights of the fintech china as he for the retreats from his online empire. let's bring in our team lead for investing and real estate. it has been more than two years since the crackdown. what does jack ma's seating control mean? >> what i am seeing is about metaverse's regulatory impasse. you combine would happen over the weekend which is jack ma up control over ant and the regulatory approval for the

finance affiliate. you are basically putting together a picture which is regulators are moving towards the ending of an overall. that is what pboc party secretary mentioned over the weekend that the regulatory government is largely happy with internet platforms at this point and we should be nearing the end of a two-year regulatory overhaul that started with pretty much the halting of ant's record ipo. haidi: does that mean we are having to wait longer for an ipo? >> that is a possibility because chinese regulations have dictated any shareholder structure change means the company have to wait for at least three years before listing on the a share market and two years for the star market. in hong kong the way is one year. after jack ma giving the voting

rights to individuals, we should expect a certain period of waiting time before the company can file for an ipo. the context is they also need to complete a financial holding license application, fold all of their financial related assets and get blessing from a large swath of regulators. shery: what does this mean for jack ma himself? he has largely disappeared from public view. i >> think for jack ma, our view is while he remains low profile, he has dodged a bullet. what the billionaire is trying to do is remove himself from the empires he created. it is better for the company is removing this key man risk and jack ma as follow the footsteps of many fellow billionaires by giving up control of the empires they created.

haidi: bloomberg's team lead for asian investing in real estate with the latest on ant financial. let's get a check on the latest headlines. up is said to have started retail -- started hiring retail store workers any india. according to the financial times apple's careers page shows over 100 positions across various locations including mumbai and new delhi. while apple began direct to do -- direct to india sales in 2020 it has long plan to set up physical vocations and a one of the fastest growing smartphone markets. which are grandsons virgin orbit says it is on course for britain's first ever space launch. after completing a vital rehearsal the modified boeing 747 jet liner is set to climb above the clouds before the rocket lasts away. the mission from cornwall will deploy nine satellites from a range of customers. goldman sachs is embarking on

one of its biggest ever rounds of job cuts as the banks leadership goes deeper than rivals to shed stuff. about 3200 positions affected. that amounts to six and a half percent of the total workforce. it is below previous proposals that could have a limited around 4000 jobs or 8%. esi and its partner have gained and it shall u.s. clearance for the alzheimer's treatment. the drug to be sold under a brand name was approved by the fda under an accelerated pathway and will cost around $26,000 a year. they expect the drug to start generating profit and of the letter half of the second year of launch. coming up, we are live from ubs 's 23rd greater china conference speaking to the asia-pacific president about china's exit from covid zero. we have that exclusive conversation. this is bloomberg. ♪

haidi: we are getting some o's

trillion data when it comes to building approvals. and it comes to the month on month building approvals expectations were for no gain. the number we got was a contraction of 9%. extending the contraction we so i the previous month of october which was a fall of 6%. i've it sector houses seeing a contraction of 2.5%. more than choice as bad of expectations of a fall of 1% and extending on the previous month's weakness. the weak property price outlook continuing to sour new building approvals. that is expected or relied upon to feel some of the future rental growth in the nation but we are seeing the extreme downside. a contraction of 9% when expectations were for a flat reading. we had seen a lot of declines when it comes to city house prices. sydney, brisbane as well as melbourne. we saw cindy's home prices declining over 11% in november.

the expectation is as we get higher rates from the rba the drop continue. we have seen australian prices dropping the most since 2008. that being reflected in dire outlook for building approvals. a full of 9% for november. shery: in other alert on the bloomberg. we are hearing reaction from former president bolsonaro as to her supporters storm the congress -- after supporters stormed the congress. he is coming out on twitter saying the peaceful demonstrations are part of democracy but invasions of public buildings likely sell today and he compares it to claimed acts done by the left and a 2013 and 2017. not within the rules. he does not necessarily mentioned the president directly but he does say he rejects the baseless accusations against him by the current chief of brazil's executive power. we are waiting to hear from the former president after his supporters stormed these key government buildings today.

400 people have been arrested so far. continue to follow the developments in brazil as the justice minister is currently speaking. he is saying this is a coup attempt and this will serve to unite the brazilian people. let's turn to a bloomberg screw. goldman sachs embarking on one of its biggest round of job cuts ever as it locks in on a plan to cut 3200 positions this week. how big are these cuts in relation to the rest of the company and we are sort of expecting so far? >> the firm has 49,000 employees. anywhere between six to 7%. at 3200 jobs this will be one of the biggest job cuts you have ever seen at goldman sachs.

it will start we are hearing as of wednesday. in a weird way -- it is a fact over the last two weeks -- expecting the number to be quite a bit higher. the number went to the newly 4000 jobs and there was concern for the final figures. that is what our source is telling us. that is a big number. it was still, as a little bit of relief for people at goldman sachs who had been expecting a much bigger cut in the next few days. shery: have to leave the conversation here. for our viewers you can find the story on the terminal. to cut about 3200 jobs. let's get to vonnie quinn. vonnie: china's border reopening after three years of global isolation is sparking a homecoming rush for many chinese

living overseas. beijing has dropped quarantine for arrivals after ditching covid zero. visitors will still need a 48 hour negative pcr tests. every band of outbound travel may take longer as countries adopt stricter covid testing requirements for chinese visitors. the world bank as some morning further shocks could place the economy into a further recession with small states especially vulnerable. the one he comes in the biannual global economic prospects report. it says global growth could decelerate sharply amid continued high inflation, worsening financial conditions and russia's ongoing invasion of ukraine. texas governor greg abbott has confronted president biden on his arrival in el paso demanding in hand-delivered letter the u.s. act immediately to stop unauthorized immigration. maybe it says is letter suggests possible solutions including increasing deportations and constructing more walls. biden was visiting texas on his way to talks in mexico city as

he faces bipartisan pressure on immigration. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. haidi: ubs's annual greater china conference begins this morning bringing together investors and top leaders. it's get over to hong kong where david is standing by with the asia head of the bank. lots to talk about. >> absolutely a lot to talk about your the timing is peculiar, interesting. the reopening of course with the border in hong kong and the mainland was that big news going into the trading week. read the news out of goldman sachs. joining us at that ubs offices in hong kong, edmund koh, president at asia-pacific. good morning. >> thank you for having me this morning. david: the way ahead, that is the theme. why don't you find that for us?

>> this edition of the greater china conference, we have been doing it for 23 years. i think the exit of zero covid and some of the macro policies we are seeing drifting towards growth is signaling the way ahead for the chinese economy. and -- no end for this particular period. david: i want to ask you about what is happening. it is affecting a lot of businesses across the border on the mainland with his surge in virus cases. how is your team doing? any changes right now? >> no. we have 1400 of my colleagues in china. it has not affected the way we work. we have some infections as well. you see a peak and then you plateau out. china is still going through that period. when we look at the economy we

thank with the exit of zero covid and the growth initiatives the powerpack of growth initiatives will come toy the tail end of quarter one. that is the massive transmigration of people during the chinese new year holidays. and low productivity during the 15 days of chinese new year festivities together with more infections we think real growth will come maybe starting of quarter to pair david: here in the business of meeting people. you need to see your clients in person ideally speaking. the last 23 years has been challenging. the borders reopening partially. hong kong and the mainland. how does that change initially? >> massively. taking a hit on quarantine. which was difficult. it is something we have to do

face-to-face meetings. it is much easier. as night coming and to hong kong from singapore although it is the first day of reopening you can already see the activities in the hong kong airport. i think that bodes well for both not just hong kong but the whole region. if i may say globally as well because doing a 17 trillion economy, what happens in china especially on policies such as exit of zero covid matters to the world. it will help tremendously in the world that will send ms massive onslaught trying to contain inflation. this policy from china is going to positively impact world. david: to your point, the policies in the last two years have hit confidence not just in the market. will clients like yours, how have you noticed changes to investor behavior especially

among your wealthy clients? are there preferences where they prefer to put their money geographically speaking? >> the last two years have been very difficult i think frannie global diversification. the u.s. was doing well two years earlier. this year if you look at it you go towards a shallow recession. david: that is the assumption? >> that is the assumption. a soft landing. a short one. for china it was more of a self-imposed policy adjustment of common prosperity. together with strict covid mobility restriction. that has impacted china. overall such adjustment to policies and economies are to be expected with the various economies. i think china will be stronger this time around. for us our clients have been fully diversified. a difficult period for most of

our clients and for ourselves. for any banks for that matter. i think diversification has helped to cushion off some of the blows rather than be in focus and region or sector. that is help clients and ocelot. david: talk to us about headcount. we heard from goldman sachs p they are looking at reductions in headcount. when no credit and the saga. are you looking to add talent this year? >> we are. we clearly are. we are a different house. when you are the preeminent wealth manager of the world where we manage more than 3 trillion, i think it is absolutely important when we look at all the elements before us we are here to grow. it is more of a franchise business. it is a very different set up for us then the other firms you have mentioned. they are great firms of course but we are all on different paths as to how we craft out our

strategy. for us i am here to hire. david: can you give us a number, rough percentage growth in the business and the manpower. >> i typically do not give a focus on numbers and it counts simply because we are here to find what is the best. we plan our own and grow our own in terms of graduate training program. consistently we have been hiring every year. for the rest it depends on the talent available and the relevance to where we are growing in terms of sector and regional coverage so it is quite different. david: businesswise what do you expect to grow? wealth management, asset management? is there anyone every major revenue streams you feel most excited about? >> wealth management will power this year because of what is happening in china and creating a more positive outlook for the

whole markets for investors. investment banking i think on the banking side should be covered as well. on the global markets -- of course volatility helps. this year because of the varying inflation trends etc., i think you see a fair bit of volatility good for the business. asset management, we have to rebuild. we have to reset our baseline last year. now it is a case of adding more mandates into the way we manage our assets. overall, growth should be all right for us but i think it will be powered away by priorities david: david: within met wealth management that seems to be a place you are looking at closely. >> one will be sustainability. the second one is new economy. in southeast asia there are still a lot of unicorns that are not just growth but value driven as well. digitalization is key.

we are continuing to focus on those areas across 13 locations in asia. hong kong is significant for us. we are helping hong kong by sponsoring the will of good fortune. which will start tomorrow night. i think that will usher in a view of hong kong being vibrant etc. i have told my colleagues in hong kong it is not that -- hong kong was never away. hong kong has always been very resilient and vibrant. for my business hong kong continues to grow. david: except for the gdp number which was down 3% last year. i saw the poster coming in of the will. biggest risk to the business, biggest risk to markets? >> biggest risk to business, the slowdown. still trying to grapple with inflation. resulting in some of the situation so with currencies and

different set classes. the rest i think is manageable. a lot of discussion has been given to the taiwan and relationships with taipei together with american interests. i think that should be all right. there will be a lot of discussions on it but through the cycles we have seen, actually pretty stable should i don't think that is a big risk factor. david: have a great conference. you so much. thank you for having us here. president of asia pacific at ubs. shery: great conversation. he is at the ubs annual china conferences. coming back with more conversations from site. if you missed any part of the conversations go to tv . you can watch past interviews. you can dive into any securities or bloomberg functions we talk about become part of the conversation. this is for bloomberg subscribers only.

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shery: as hong kong's border with the chinese mainland reopens, many visitors to the city are expected to try to get access to mrna copan vaccines that are not available at home. yvonne man reports from hong

kong. >> waves of visitors from mainland china could become here in hong kong after border checks reopen for the first time in nearly three years. many of those visitors are expected to want to get their hands on these thorn brand mrna vaccines which is something they could not do in the mainland where only the sinovac locally made vaccines have been available. leading up to the opening lines of vaccine centers around hong kong have formed. it is hard to book an appointment online through the government website. some hospital websites even showing no availability for 14 days. even nonresidents of hong kong are eligible for the pfizer beyond tech vaccine provided they meet certain requirements. they can also choose to do the private rail and pay. one of china's biggest conglomerates distributes ion tech and has disturbed online bookings for people.

about 43 u.s. dollars. could be good business for folks. the trickle-down effects could reach hotels, retail, fnb, even property economists say the boost of growth may be muted at first. wealthy mainland chinese have taken their business to singapore which opened their borders earlier last year. local hotels are struggling with staff shortages after employees found work elsewhere during the pandemic. not to mention hundreds of thousands of people have left hong kong. it is estimated hong kong west 27 billion dollars in potential growth because of strict curves. even the reopening may not be the quick fix to veiling economy. shery: straight to the markets to see what is moving. annabelle: just taking a look at what we heard in the package.

travel no becoming a reality in hong kong. you can see in this chart how steeply visitor arrivals from the mainland have dropped off in hong kong which has hurt not only a number of businesses across the spectrum for investment firms, retail, also food companies. in terms of what else that means, as we just heard, the moves this will have on hong kong's growth prospects, if you take a look at this chart, we have the latest survey coming through saying growth could be said to expand by 3.3% over the coming 12 months. that is the latest survey. it really does point to how much optimism has come through from china reopening. also the measures hong kong has to take into ease its covid roles in the city because we had the november survey predicting for gdp to expand by 2.7%. improvement could be backloaded in the second half of this year. if you change on now, china's

reopening today one of the major themes in the session. we are seeing a lot of positivity across the seen today. it is not just about what is happening in the mainland. it is also down to the jobs report and the expectations the fed may need to be less aggressive moving forward. we are seeing broad gains particularly for korean stocks. we are being led by materials, energy and tech. we are seeing gains pointing for the mainland open. haidi: let's get more when it comes to the outlook for chinese equities. investors gearing up for more gains in the rally with the reopening trade. consumer related stocks, some of them your pointing out earlier. expected to speed ahead the search. our asian stocks managing editor joins us. great to have you. we are expect thing a lot of these consumer facing names that will finally benefit from the reopening. that will be the leadership we see from this rally? >> i think the reason was the sector was the most beaten-down

sector during the three years of covid zero restrictions. even with the initial reopening in the last few days or weeks, we still have not seen a big rebound in consumer spending. that is because covid. cases have been surging investors are betting we are going to see a rebound in consumer spending soon. first the inflection peak seems to be here and faster than people had expected. second i think there is a lot of pent-up demand from consumers with all the savings accumulated during the covid zero years. that could reverberate across the economy, across employment and that would mean or translate to corporate profit and corporate growth. if you look at the sub index of csi consumer this questionnaire he index, it is already outperforming the csi 300 in the last week.

shery: given that a lot of it was already priced in, one of the next catalysts investors will be watching for in a sustained rally? >> i think mobility data is the thing everybody has their eyes i'm sure the latest data is showing some 90 cities out of 101 city samples have seen improvement -- continuous improvement in mobility and that is up from 49 a week ago. that is already showing improvement. the chinese new year is coming in two weeks. the spending that is coming together with that is something a lot of people are watching out for whether people are really going to buy a gift for their parents, and taking people out for meals. the third thing is china's two sessions coming up in march where more consumer friendly policies may be rolled out because consumption accounts for about a half of china's gdp and china is keen to boost the economic growth this year. shery: a preview of the chinese

markets. more ahead. this is bloomberg. ♪ troducing the new sleep number climate360 smart bed. only smart bed in the world that actively cools, warms and effortlessly responds to both of you. our smart sleepers get 28 minutes more restful sleep per night. proven quality sleep. only from sleep number. can help your business get a payroll tax refund, even if you got ppp and it only takes eight minutes to qualify.

i went on their website, uploaded everything, and i was blown away by what they could do. getrefunds.com has helped businesses get over a billion dollars and we can help your business too. qualify your business for a big refund in eight minutes. go to getrefunds.com to get started. powered by innovation refunds. haidi: we have seen broad gains so far this monday morning in asian trading. holiday in session as japan is away on a holiday. strong gains when it comes to

korean stocks. the kospi jumping the most since early november. the longest winning streak when it comes to city stocks. asx 200 up by just about 1%. longest winning streak since november. u.s. futures looking like it will extend the rally. u.s. equities had their best day in more than a month on friday. quite a bit of expectation or optimism. perhaps unexpected contraction on a services activity. the slow down in wage growth could persuade the fed to temp up of the weighed -- the progression going forward. watching strength when it comes to risk currencies like the aussie dollar continuing to stay resilient. it is it for daybreak: asia. our markets coverage continues with the start of trading in hong kong, shanghai and shenzhen. ♪

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