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daybreak asia. markets have just come online. we are counting down to the openings in tokyo and seoul blame up. this would be the first leaders summit since 2021. this is happening in mexico city. we are expecting president biden and prime minister to grow. they will make an appearance in mexico city. president biden is privately urging over door to enact to boost semiconductor semiconductor production. >> really interesting when it

comes to this private conversation that we hurry or happen with president biden and his mexican counterpart to try to push forward the american drive that has been such an administration priority for president biden to boost semiconductor production. this is a bigger puzzle to try to remove some of the supply of key tech components from asia to north america. we saw that highlighted by apple bringing some of its key component production in house. these leaders are taking to the podium now. >> president joseph biden junior, you have the floor sir. >> thank you very much. it is an honor to be back here

in mexico city. thank you, mr. president, for hosting the prime minister and me for the 10th north american leader summit. we are true partners, the three of us, working together with mutual respect and genuine like for one another to advance a safer and more prosperous future for all of our people. the reason for this summit is because we share a common vision for the future grounded on common values. i mean that sincerely, common values. since becoming president, i have been focused on rebuilding the u.s. economy from the bottom up and the middle out, not a trickle down economy. it works because the wealthy do

very well and everybody else does well too. from the bottom up means investing in priorities for working families. the united states has made bipartisan investments in infrastructure and innovation that are delivering concrete benefits to the american people. we have renewed our dependence and deepened cooperation of our closest friends and allies, none are closer than mexico and canada, to take on the biggest challenges facing the world. there could no longer be any question. we cannot wall ourselves off from shared problems. we are stronger and better when we work together.

together, we made enormous progress since our last summit, from fighting covid-19 to invest in in and building a 21st century workforce. at the top of our shared agenda is keeping north america at the most competitive, prosperous and resulted economic region of the world. the strength of our economic relationship not only supports good paying jobs, but it generates tremendous growth. we are working to strengthen our cooperation on supply chains and critical minerals so that we can continue to accelerate our efforts to build the technologies of tomorrow right here in north america. this summit builds on the cooperation with one another to take on the challenges that

impact all three of our nations. our entire hemisphere is experiencing unprecedented levels of migration, greater than any time in history. in 2021, we launched the idea of original wide -- regional wide approach. a group into the declaration on migration and protection, which 21 countries adopted six months ago. we are working together to fulfill our commitments under that declaration. they include the policy announced last week to expand safe pathways to those seeking a better life in the united

states. we also want to thank you mr. president for stepping up regarding those -- on my way here, i stopped in el paso, texas, to see the situation with my own eyes and to meet with u.s. border security officials. it is putting a strain on the communities in both mexico and the unit is dates. we are working together to address this challenge in a way that upholds our nations laws. we are also working together to take on the scourge of human smuggling and illegal drug trafficking. in the last six months, our joint patrols in mexico have resulted in the arrest of more than 7000 human smugglers. we have seized more than 20,000

pounds of deadly fentanyl at the border. we discussed how all three of us could strengthen our shared efforts to cut off the flow of illegal fentanyl, including tackling the precursor chemicals used in synthetic drugs. we also talked about meeting our commitments to make north america a clean energy powerhouse and i believe that is within our grasp. that means working together to make zero emissions vehicles, to build charging stations for electric vehicles that are compatible across international borders. it means exploring shirt markets for clean hydrogen and a means working together to meet our

ambitious commitments under the paris agreement, including tackling methane and black carbon. and finally, s3 vibrant democracies come we recognize our -- as three vibrant democracies, we recognize the strength of our people. the key to and edge is our incredible diversity. to make sure everybody gets a fair shot. it is one of the smartest investments we can make for our future. mr. president and mr. prime minister, i am honored to stand with you today. i am grateful to have u.s. partners and friends as we work

together to realize a shared vision for north america. thank you very much. [applause] >> let's give the floor to his excellency, the prime minister of canada, justin trudeau. >> thank you for having us here in mexico city. president biden, thank you for all of your hard work and your valuable insights. as a compliment, we are unique. we are three large democracies committed to freedom, human rights, equality and creating real opportunity for everybody. we share deep ties as friends. and trading partners.

[speaking french] >> this trade agreement helped our economies grow and created employment amongst our borders drew investors. >> combined, we are home to half a billion people. we have an extremely strong innovation ecosystem. our combined gdp is larger than that of the european union. and as leaders, we are dedicated to driving economic growth that supports the middle class and those working hard to join it. these are all foundations of a

strong and resilient continental economy. people remember what happened just a few years ago when the certainty of this partnership was in question. investors, businesses, workers and citizens are worried about what would happen when free trade is that risk, that is not good for competition in the global market. thankfully, the belief in free and freer trade won the day. we got an even better deal. we are and always will be stronger together. the world is facing a lot of uncertainty with the rise of authoritarian leaders causing global instability and the high cost of living putting stress on families at home. it is important that we come together as leaders and friends

to look at ways to make our economies more resilient. today we discussed how we can build reliable value chains on this continent for critical minerals, semiconductors. this is good. for workers, good for consumers and communities across her countries. [speaking french] >> today we spoke about a way to do cooperation in the realm of health services in order to be ready to be intervene. >> things like clean energy, including hydrogen, manufacturing zero emissions

vehicles. this is an enormous opportunity for workers and business. >> we should all be part of climate action. government and private sector should work together to obtain the 2030 goals and objectives. these goals are not only about reducing pollution to get to the paris objectives. they have to do with our engagements to preserve 30% of our lands and oceans in 2030. we reached a historic agreement to preserve and protect nature. this is essential for the health of the economy. >> to have our mexican and american friends to commit so strongly to protecting clear error and clean water.

-- clean air and clean water. a society where there is opportunity for everyone, where women and girls are empowered, including indigenous women and girls. where the benefits of growth are felt by workers and families across the economy. by doing this, we create a more stable, prosperous and equal future. and we build economies that work for all north american spirit we made progress in a lot of different things today. there is a lot going on in the world. we recognize the roles our countries play in being a source of stability and security, not just in the region, but around the world. >> this summit was extremely will.

-- extremely fruitful. >> i look forward to hosting you both in canada for the next north american leaders summit. thank you. [applause] >> let's get the floor to the president of mexico. >> i want to thank the participation of president biden and the prime minister of canada , justin trudeau. and also the participant tatian of the respective -- participation of their respective wives.

i also want to thank third delegations and teams. the mere fact of being here together today as good neighbors in this environment of respect, to look for the well-being of our people in a joint manner is a very important historic event. i wanted to highlight that we have agreed on strengthening our economic and trade relationships. we will be creating a joint committee aim to planning and substituting imports in north america so that we may try to be

increasingly self-sufficient in this part of the world. and to turn development cooperation into a reality as well as the well-being of all of the countries of our continent. we want that to be a reality. we will be proposing four members for the formation of a task force of this committee of 12 specialists that not only know this issue we are going to be working on, but they will also have our absolute trust to invite the business community, public servants of all three

governments and to convince them about the importance of being united in north america and for us to be able to have this unity in everything we do throughout the american continent. we are going to be represented by the foreign minister, the finance minister of mexico, the secretary of economy and the representative of the business community. we also discussed economic

commercial trade. and the well-being of the people and the new relations of cooperation, leaving behind interventionism. . let me express my acknowledgment to president biden and prime minister justin trudeau in the way in which they have acted vis-a-vis the attempt of coup

d'etat in brazil. this shows there is an authentic commitment in favor of democracy. our support for president love brazil. -- president lula of brazil. we have to be able to accomplish this on equal footing, for us to be treating each other as good neighbors, economic allies and as friends. we have course will be helping to turn this dream into a reality.

we are very enthused at the certainty that this is something we can accomplish. peace is the result of justice. social problems cannot be solved , only with coercion measures, we should always attempt best approach the scourge of violence without humanitarian approach of opportunities for the well-being of everyone. people are good by nature. it is circumstances that sometimes make it necessary for somebody to take the path of antisocial behavior. we have seen this in mexico.

and also in our sister countries , the countries of honduras and el salvador. in mexico, since corruption is not allowed and the budget is used for development. >> a joint press conference between the leaders of the united states, mexico and canada. we got a little bit more clarity when it comes to the cooperation between north american leaders. we will leave it there. we are getting information about strengthening supply chains, forming a committee to work on the north american import substitutes. we also heard from prime minister justin trudeau talking about the challenges with negotiating that. -- nafta.

annmarie, what was your take away? >> it was for show up on lines from these three leaders. it was night and day of what we saw from the trump administration, who never attended such a summit. you saw justin to grow say -- prime minister justin trudeau said you all remember a few years ago when this partnership was potentially in doubt. you are seeing a real show of force from these three leaders that they want to task their teams to build more integration when it comes to trade. president biden talked about his trip to el paso and that she wants to work with mexican officials to work on a more legal path for migration.

they announced a new pathway virtually instead of people showing up at the border. he also talked about fentanyl. 20,000 pounds have been seized that the board just since august the loan. they want to have more formal relationships to combat these issues together. we know that there are also tricky conversations going on behind the scenes when it comes to trade. >> our next guest says there is optimism coming from the world's biggest economies, but plenty of risks. joining us now is dr. christopher smart from barings investment. how challenging will it be to

get all the ducks in the road? >> we have to recognize that we have seen signs from all of the major economies that things might be a little bit better than we expected early last fall. in the united states, we are seeing cooling in wage growth, the less report down to 4.6% year on year, which i think is encouraging overall. it is still a pretty substantial consumer demand. in europe, the weather has been more mild, gas usage is down in germany substantially and the fears that this energy shock coming from russia and the russian sanctions would tip europe into a recession is more alleviated right now. of course in china, we have the reopening of the economy that is leading to an ugly rise in

infections and maybe deaths. but a gearhead that is likely to see most of the covid impact in the rearview mirror and perhaps a recovery in consumption. from all three of those major economies there is a glimmer of hope. even though we have to admit it is going into a slowing global economy with real risks that remain on the horizon. >> for china, would you characterize that as short-term for the next quarter. but the longer term issues, the demographic issues, the property sector continued to lean up fiscal to revive amount economy. are these longer-term concerns? >> those are very real concerns

and will play into the longer-term, but the strength of recovery this year. the property sector has been at the heart of china's growth for decades. even if things have stabilized, we have seen a strong recovery in those property names in china , we do not expect that to be a driver of chinese growth. what we saw in the united states and europe with possible savings that have been building up during the lockdown and then this pent-up demand, we should expect the balance of this year to exceed current forecasts. >> one of the key risks for china is always geopolitical tensions. the world bank talking about china and the real estate sector being a stress on the economy, but also trade fragmentation. as we have seen this press

conference, we continue to see more signals that perhaps we could see veering away from supply chains in asia for this part of the world. a lot of that sounds inflationary. tell us a little bit about what the structural changes mean for the broader economy. >> that is something we are watching very closely. if you are trying to compare what the post-pandemic is going to look like compared to the pre-pandemic world, one of the changes is reinvestments in greater redundancy, reinvestment in supply closer to home. most of the focus is on the tech sector, semiconductor spending and those areas important for

national security. it is unlikely anybody feels they will have to buy all of our furniture with famous strategic supplier from within the united states, canada or mexico. i do not think the macro impact will be so significant, but there will be more spending and costs in those sectors. >> when you have those national policies, whether it is here in the united states, or china itself trying to gain self-reliance when it comes to the high-tech sector, does that alter your investment recommendations among some of those sectors that may be shielded from potential recession concerns this year? >> the tech sector in particular has added risk, not just because of the slow down globally.

even before the pandemic, tensions were rising between the u.s. and china. there were regulatory concerns within china on the text that dirt. -- the tech sector. if you are operating in that space between the united states and china, i think that is going to add to the wrists on both sides. having said that, both governments are going to do a lot more spending to re-create redundancy. that is going to cushion the blow of those political challenges. dr. christopher smart from barings investment. good to have you with us. we continue to monitor the press conference between president biden, prime minister to go and the president of mexico. take a listen.

>> let me get rid of the easy one first. when my lawyers were clearing out my little white -- office, they set off a secure office for me in the capitol. for four years, was a professor at penn. they found some boxes in the cabinet. as soon as they did, they realized there were several classified documents in the box. they did what they should have done. they immediately called the archives. they turned them over to be archives and i was briefed about this discovery and was surprised to learn that there were any government records that were taken there. but i do not know what is in the documents. my lawyers have not suggested i

ask what documents they were. they have turned over the boxes to the archives. we are cooperating fully with the review which i hope we finish soon and there will be more details at that time. the first question now i forgot. your first question related to? i am only joking. the answer is both extremes are wrong. now will, as was mentioned by all of us, this has been the greatest migration in human history around the world. when i got elected, the first major piece of legislation may introduce was to reform the

immigration process, to make it more orderly, to make sure people have access under the law. what we found out is that our republican friends and a few democrats are very critical of what is going on at the border, but refused to look at the detailed document i submitted for congress to consider to reform the process completely. number one, right now a majority of our migrants are coming from four countries. venezuela, cuba, haiti, nicaragua. we expanded a very successful parole program to cuba and nicaragua and katie to provide -- haiti.

this is going to reduce the number of people illegally trying to cross the border. venezuelans were trying to enter the country, that has dropped off dramatically because we have allowed them to go directly contact the united states, makes -- make their application, do a background check, they have access to sponsor. and that they have been examined. that way they are able to come through ports of entry. it has dropped off dramatically. from 1001 people trying to enter to 250.

i want to thank the president of mexico for agreeing to take people back that do not meet the criteria. right now, the cartels make a lot of money which they use for drug trafficking as well. people have to make it through jungles and a long journey to the border. many are victimized, not only in terms of what they have to pay, but physically, and we are trying to make it easier for people to get here, but not have them go through that awful process. we will continue to address the root causes of migration. i have asked the congress for $4 billion to provide for that. we had our vice president

provide for private donations of over $3 billion. l of us have been immigrants. one of the things that comes across clearly is, it is not people vested in their homes and said let's sell everything we have been given to coyotes, smuggle us across the border, drop us in the desert, won't that be fun in the country we do not even speak the language? >> we are going to leave that there. blue broom can continue watching

the three leaders of the united states, mexico and canada speaking in a q&a session. let's take a look at our markets . we have seen the market open up modestly high. a significant upside when it comes to material as well as injury -- energy. industrial as well. we are watching for the restart about sports of coal -- the exports of coal. new zealand trading pretty flat at the moment. singapore nikkei futures up by a half a percent. a pretty flat picture for u.s. futures at this point.

we are saying some gains on wall street overnight. traders betting the cpi index will stroke further softening. watching and waiting to see what fed chair jay powell says on thursday. in the meantime, concerns about global recession continue to play out. let's bring our expert kathleen hays from chicago. the bank cut their forecasts in half. one of the biggest drivers this pessimism. >> it should not surprise anybody at the world bank is underscoring surging inflation. cutting the gdp or cast for 2023 from 3.4% to 1.7%.

that is how quickly it seems it is underscoring that the risks are now completely to the downside for global growth. you have david malpass saying today the crisis is intensifying. he said the combination of slow growth, tightening financial conditions and heavy indebtedness is likely to weaken investment and trigger corporate defaults. there is already a very high debt load, particularly after the pandemic. so this is not a good environment for them. there is also this concern that it is going to be worse send by war in ukraine which shows no signs of letting up. and that weakening growth in the

united states, the european union and china is also weighing on the situation. it is interesting if you go back to the meetings in october of the imf and the world bank, they admit inflation has to be gotten under control, particularly in the united states. david malpass says there are fiscal reforms we can make to move this country's ahead. but for now, he is helping the world prepare for a not so nice 2023 when it comes to a global economy. >> despite the risks, we see the fed continuing to tighten. jamie dimon saying we can see much higher rates. >> this is a big debate right now, just how high the fed will have to push rates.

the terminal rate will be at least 5.1 percent. some people have been saying even higher than that. jamie dimon was talking about the idea that he thinks there is a 50% chance the fed will get to 5%, pause, look around and then push rates as high as 6%. >> we were a little slow getting going. i do not think there is any harm done waiting six months to see what the full effect is around the world. it is a wise thing to do. i am undecided a may not be enough. >> interesting he said the effect around the world.

they both expect inflation to keep improving bit by bit. taken the right up to 6%, we have never been in a situation like this. he thinks the fed will be more inclined to be a little cautious, even as jamie dimon just said. i think he is acknowledging short-term political factors could rise against the fed the more they have to do to fight inflation and the more the economy slows down.

>> kathleen hays there with the global risk to growth. we continue to monitor the discussions and the press conference happen in between the leaders of the u.s., canada and mexico. prime minister justin trudeau's right now. -- speaking right now. the three countries are aiming to coordinate investments in semiconductor manufacturing. >> the same thing with electric vehicles. but canada again from the critical minerals that go into the batteries and the batteries themselves we are starting to build, to the steel and the aluminum being developed in canada, to the technology, the innovation from ai, canada is very much a partner in what we are developing in terms of the

more resilient supply chain. even in semiconductors, the largest semiconductor packaging plant in north america is in quebec. these are the kinds of things that canada is very much focused on in ensuring not just prosperity right now, but good jobs as we move toward an environmentally responsible, socially inclusive future. >> you were just listening to prime minister justin trudeau talking about the centrality of supply chains in their discussions today. we are expecting to see more details on these chip investments. this is bloomberg. ♪

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some visas for south korean visitors. let's bring in david ingalls. we heard from beijing that they were threatening to do this.

does this potentially hurt china's inbound tourism recovery more than a dozen these other countries? >> absolutely. china has had these threats to the united states, to others, even australia has reported pcr tests. but japan and south korea obviously there is some legacy diplomatic conflicts between those three nations, so there is some legacy issues there. the chinese have chosen to retaliate. the first retaliation against these curbs. they chose those two countries first. why? let's hear from the foreign ministry spokesperson. >> a few countries still impose restrictions on travelers from china. china has made full communication with relevant countries based on facts.

our measures are science based and reasonable. this is in line with the domestic situation of china. a few countries still disregard science. they up and discriminatory entry restrictions on china. china firmly rejects this and will take reciprocal measures. >> well, they have taken those reciprocal measures and south korea's foreign ministry put out a statement saying its measures are also scientific. wwill see how this will play out. we do know japan had imposed several pcr tests. initially on the hong kong travelers. but they backed up on requiring hong kong people and have been pcr test, but mainland chinese wll still have to.

you asked if this will hurt china's economy, absolutely. the two biggest sources of tourists from outside of china to china pre-pandemic were japanese and south koreans. >> stephen engle there with the latest on those restrictions for south korean and japanese visitors to china. we continue to monitor the latest in the joint trust conference between the north american leaders. we have heard about efforts to coordinate investments in semiconductor manufacturing. this has been taken by investors that could be more potential for homegrown technology. joining us now is willer chen,

says china's tech stocks are so cheap. we would think this is the negative, but chinese chipmakers have rallied and you still think there is room for growth. >> even after the rally in december last year, bear in mind, all these tech companies were in a distress level before this. even all of these negative factors, investigations and chinese tech companies, i think

they are gradually playing out to boost chinese tech rally in the future. i think this should continue and the direction in reopening is crystal clear. >> what do the latest changes the mean to you in terms of what the sector has in terms of potential. >> think several changers -- changes are crucial. the capital injection plan being approved by the regulator. this should help to gradually structure some business and to boost capital in order to be more compliant with banking regulators. another important thing is

controlling shareholder positions. just last night, we saw an official showing friendly gestures from the government side and also they recognize how they have been working on complying with the government requirements. the change of shareholder position will mean of a one year delay in the ipo plan. >> you mentioned the exit from

covid zero. how much do you need to see in terms of the consumption rebound to happen across the country to be more optimistic about the sector? >> after a pivot of the covid zero policy in december, the macro is not as good and i think she one will give us -- q1 will give us a reprieve across the macro. later in the first quarter, try to seek how it will play out because that is the real time where china will see the real recover of china in terms of consumption. i think we need to see the consumption level back to pre-pandemic levels and we need

to see people buying more and having a higher confidence. because we have this covid zero policy the last three years. that definitely will take time, but we are optimistic about recovery in the future. >> good to have you with us. the latest thing chinese tech and some of those stocks that he is optimistic about. a bird flu outbreak spurs a record call of 10 million birds in japan.

china suspended some visas in retaliation of curbs on chinese travelers. coming up, we head over to the asian financial forum taken place in hong kong. plus, jeremy lawson tells us why the lumen downturn may be -- a looming downturn may be underestimated. this is bloomberg. ♪

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we continue to see growing pessimism on it comes to the economic growth forecast, especially coming from the world. continuing weakening demand globally. we are getting the 10 day export numbers for south korea for this month. a contraction of .9% year on year. >> geopolitical tensions threatening the downside even more. we were really expecting the recovery of tourism to the consumer in china, but now we are hearing beijing has stopped issuing short-term visas when it comes to south korea and japan in retaliation of covid restrictions. >> we have seen stocks in asia,

we're seeing gains for the nikkei again. the japanese yen holding around the 132 level. a little bit of strength against the u.s. dollar. do have a 30 year debt ceiling today. the boj refrain from conducting additional debt to says. when stock i am we are watching his fast retailing. take a look at what is happening in south korea. we're seeing gains. the jobless rate at 3.3%, which is the previous month. we are seeing a multi-month high

when it comes to the south korean jobless rate and export conditions weakening. shipments contracting .9% year on year. right now, the south korean won in a strength of 2/10 of a percent across the u.s. dollar. >> let's take a look at trading in australia. we are hearing reports that chinese importers of australian cool are working on getting shipments back up. this is seen as a positive. the aussie dollar still hovering in pretty close to the four-month high.

this rally little bit more mature and we may not get the full benefit of the golden cross, which is already in formation. we are seeing broader equities up and the game is across materials. energy us while benefiting. let's take a look at how bond markets are trading. we are getting australian cpi later on today. expected to show a reversal of that temporary trend we saw in november. we are also seeing risk aversion as we go into thursday. we expect to be here in from fed chair jay powell. -- hearing from fed chair jay

powell. >> the annual asian financial forum starts today in hong kong. let's crossover to the event where yvonne man is standing by. >> the 16th asian financial forum here in hong kong. this is days after hong kong's parcel reopening with the mainland. hong kong welcomes the world back here. i am pleased to kick off our coverage here with the philippine secretary of finance, benjamin diokno. >> thank you for having me. nice to be back. >> have to ask you about the macro picture that we are seeing across the world. the fed seems to be downshifting.

>> i think that is a positive boost for us. we have adjusted also, but not to the extent the fed has. it is good news for us. >> do you think has the space to transition to lower 25 basis point hikes? >> i think so. i think the governor said a possible 25 basis point. >> even with inflation at 8%? >> yes. we are confident inflation will be 2.5 this year. we know we hit by .8 last year. we are confident that by 2024,

it will hit right in the middle of the 2% until 4% target. >> how soon can we hit it? >> it is not for me to say. [indiscernible] >> you always advocated for a whole government approach. how do you think monetary and fiscal policy should be in sync? how important is it to you to cap the costs of government services? >> during the pandemic, we really needed to help the national government because of the shortfall in revenues. at the same time, there is heavy

pressure on spending for more health services. the central bank help the government and that is provided by law. we are allowed under extraordinary situations to help. we have now retracted our assistance to them. moving forward, i think we are doing just fine. >> how insulated is the philippines from all of these concerns about a global recession? >> we are far away from ukraine and russia. the philippine economy is driven mostly by domestic concern. we have a very young population and they are consuming a lot. our foreign trade is not that big. our tourism is not comparable to

thailand or the bahamas. we are not reliant too much on this. we are more reliant on filipino workers and that has proven to be resilient even during the pandemic. it did not shrink. we are optimistic they will be expanding. >> you mentioned you believe inflation will come down this year. is there still any sort of inkling from the government to try not amended? -- nonmonetary measures? >> we look at the recent numbers and it is food rather than oil the that is striving inflation. so we have to increase production and import as needed. >> does that mean suspending or just in tariffs? -- adjusting tariffs?

>> yes. >> will bad dent revenues -- well that dent revenues? >> we will be able to collect more through the tax administration. >> what are your plans with further consolidating and revenue enhancing measures? >> last year, we collected more so we have more elbow room for spending. i am confident that will be the same situation this year. there are more assets and on the spending side, we have up to, we have been more inclined to develop public-private partnerships. we opened up some sectors for 100% foreign ownership,

telecommunications, reports, shipping, so private investors can come in and invest. >> we have recently tapped into the dollar bond market. do you plan to do more? >> it is part of our finance and program, which is 25% foreign and 75% domestic. it is within that range. >> are you looking at other currencies? >> right now, dollars. we can maybe explore the middle east. >> how soon can you do another international bond issue? >> we are planning to issue

dollar denominated retail bonds. this is for workers who would like to invest in these kinds of instruments. >> third quarter, a surprise uptick. what the fourth quarter of b slower? >> i think it will be at least 7.5%. >> the reopening story of china. how beneficial is that to the philippines? >> i think there is synergy between the two leaders. they remember the days when it was not fashionable to have links.

>> this was from your meeting with the president. you said it was quite from all? >> yes, it was very useful for electric. >> you were a few months into this new job best the secretary of finance. how has it been for you so far? >> [indiscernible] i am not complaining. >> i am sure you speak to a lot of credit agencies. what are some of the key questions that you get when it comes to finances? >> balance of payments, i've explained to them it is manageable because we have a

structural inflow of 13 billion every year, plus another 30 billion. so that is no problem for us. >> you mentioned of privatization. are you considering privatizing some state run corporations? >> some have already been privatized. for example, power. foreign investors can own 100% all renewable energy. >> in terms of trade protectionism, we are seeing bad around the world. is that going to be a bigger challenge? >> i think because of what happened, there was no a tendency to secure musick markets first. for example -- to secure

domestic markets first. >> how do you think the philippines can position itself better in a situation like that, where countries are being more reserved? >> we really have to have bilateral ties with some countries. maybe indonesia for some goods. it is not a fiscal one-size-fits-all solution. it will depend on diplomacy. >> risk for you this year, what would that be? >> climate change. we cannot predict the weather. that can do some major damage, whether it be a typhoon or flooding. we have a facility at the world bank where we get ourselves the

insured. >> you will be discussing the global economy. what sorts of conversations are you looking to hear? >> we just came from the global financial crisis, the pandemic. this is hard to absorb. there are many countries in the world. so crisis after crisis. we have a population with increasing poverty in the country. that is still the major concern. and we have to worry about climate change. the bigger problem is the looming climate crisis.

to me, i do not know how countries will behave. a lesson here is you have to look at your country first. >> secretary benjamin diokno, thank you so much for joining us. i will send it back to you guys. >> great conversation there. let's get you to vonnie quinn. >> a white house official says president biden has asked janet yellen to stay in her pulse and she has agreed. he made the request in december. janet yellen told nbc she intended to stay for the duration of his current term. jerome powell is drawn a line around how far the central bank

would use its powers to protect the environment and address the climate crisis. he said it will stick to their mandate. >> without explicit congressional legislation, it would be inappropriate to use supervisory tools to promote a greener economy or to achieve other climate based goals. we will not be a climate policymaker. >> china has stopped issuing visas for japanese and south korean travelers in retaliation for their covid hats on chinese travelers. london in china grew more slowly in december as the spread of covid weighed on economic

activity. 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 vonnie quinn. this is bloomberg. >> still ahead, abrdn investment management's jeremy lawson. also, a fresh warning of recession. this is bloomberg. ♪ at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture.

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>> let's take a look at how things are faring in the early part of the asian trading session. we are seeing brought optimism. we are expecting monthly inflation numbers out of australia. expectations of further softening. it could encourage the fed to become a little less hawkish. we are sharing of prospects of a pivot. the kospi trading a little bit higher, about 3/10 of a percent. we have this retaliation between china, south korea and japan over covid restrictions. try not stop the issuance of visas there for tourists coming

on a short-term basis into china. some energy names showing leadership in this rally today. we are hearing by february we will get the first resumption of exports to australian coal going back into china. a lot of these chinese importers are working on getting shipments restarted. kiwi stocks up 1/10 of 1%. we are seeing resilience when it comes to risk currencies, like the aussie dollar, sitting pretty close to the four month high. when it comes to european futures, we have seen a down picture when it comes to the previous session. we did see european stocks hitting their highest level in just over eight months. hawkish fed comments dulling optimism about the pivot ahead

of the key inflation data. retailers and minors the top decliners. belgians prime minister believes think your payment union must ask -- the european union must ask -- act as a block. >> it is a happy new year in the sense that 2023 would be a better year than last year. last year was a complicated year in europe. if you look at the economic indicators, the fair for recession is diminishing. there are good reasons for that. one of the reasons is on the energy side. a number of things have helped.

first of all, the agreement on the gas cap. it is a strong indication that in europe we will not paid these very high prices anymore. as well very instrumental is the fact that more supply is coming. and for countries that were dependent on russia have found other sources of gas and the fear of gas shortages has been reduced significantly. belgium played an important role in that. >> you say it is early to tell, but is there a point where you said the situation is stable. it will it be when inflation really comes down? will it be one but consumer bills actually go down? >> i think when you see gas prices going down, you can expect the consumer bills will

go down. that is the key thing because that is what is driving inflation. belgium is driving wages up, which is hampering our competitiveness. so prices going down is good, but it will take some months before the consumer will see it. we are in a geopolitical competition and that is mostly within the united states today. there inflation reduction at could be threatening for industrial activity in europe. we really need to act as an european block. >> we have more to come. this is bloomberg. ♪

>> take a look at the fx markets, japanese yen is holding steady at the 132 level against the u.s. dollar. that's after we saw weakness in the previous session in this as the greenback has fluctuated in the new yield session, right down remaining pretty steady. korean won continues with its strength. we are talking about gains of more than 2% of the first 2% of the year, same for the aussie dollar, four-month high given optimism about china. but of course there is not a lot of optimism when it comes to global growth. at least when it comes to the world bank. coming up, aberdeen investment management says the global economy is on the precipice of recession. we will discuss. this is bloomberg.

>> we are getting some data out of australia, particularly looking at the retail sales

number for november. month on month we see a gain of one point 4%. expectations were for a gain of 0.6 percent. we are seeing a stronger-than-expected bounce back from the contraction of 2/10 of one that we saw in october. also getting the inflation readings as well, which of course is really key. this new monthly inflation reading giving us a new update on price pressures. 1.4 percent. actually gaining from the previous month, which was 6.9 percent and faster clip of inflation year on year then expected at 7.2%. the trimmed mean you are reading is 5.6%, that is slightly more than what we expected, also an acceleration from the previous month, also getting job vacancies, that has seen a fall of almost 5%. continuing to show the picture when it comes to the labor market. the retail sales numbers are interesting that we see a bounceback because that reading that was week for october really showed potentially that consumers were feeling the strain of cost-of-living

pressures, faster inflation rising, interest rates by the rba and we have been expecting further weakness through the rest of the fourth quarter, potentially going into 2023 as we see that passed through to household budgets or rate hikes. but it does seem whether it's temporary or not, novembers retail sales numbers looking a lot brighter, particularly as we get the return of inbound for-ism from chinese visitors out -- as well that could support retail services and those related sectors, but that cpi numbers really interesting, continuing to see gains when it comes to that you're on your number of consumer price inflation higher than expected a an acceleration from the previous month. food for thought when it comes to the rba and certainly for us trillion bonds as well. let's get you to vonnie quinn for a quick look at our first word headlines. bonnie: the world bank has cut its growth forecast for most

economies this year, warning that any new shocks could lead to a global recession. the lender says global gdp will likely grow 1.7% in 2023 or half of the banks protection in june. it also downgraded its outlook for next year citing russia's invasion of ukraine and tight financial conditions. hedge fund billionaire has likened the fed's war against inflation to an attempt at a perfect moon landing. he said that fed chair jay powell is vote -- facing the most challenging economic environment in 40 years and that if powell succeeds without breaking things, stocks could climb up to 8% this year. hong kong has condemned the decision by the uk's foreign office minister to meet with lawyers of the imprisoned media mogul. it's accusing london of interfering in its investigative affairs. he was found guilty of fraud in october at a china's sweeping security legislation. he's one of several prominent pro-democracy activists who have been charged under the law. australia's highest catholic

character colonel george pell has died aged 81. the church said he died of heart complications in rome on tuesday night following hip surgery. he was in charge of the vatican's finances from 2014 to 2019. he was jailed for child sexual abuse in australia in 2019 but had his conviction overturned an appeal year later and vigorously maintain his innocence. global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn, this is bloomberg. hi to: -- >> we are getting breaking news when it comes to apple. it is switching -- a lot of its components to in-house, including these key chips. we are now reporting that apple is planning to start using its own custom displays in its mobile devices in as early as 2024. this is a big load to its tech partners, the likes of samsung,

lg will be expected to move in the trading session as well. art of the broader effort to bring more components that it needs to make its devices and house. the company is aiming to begin by swapping out the display the highest and apple watches by the end of next year according to people familiar with the matter. the screens upgrade -- the current standard to a technology called micro lead. map -- apple is planning to bring the displaced other devices, including its flagship iphones. as i mentioned, really part of a sweeping effort to replace apple suppliers with this homegrown parts. it will mean the company gets more control over the designs, capabilities, production of its products. it's already dropped intel chips in its mac computers in favor of its in-house designs and is planning to do so when it comes to key wireless components and their iphones as well. so this screen switch in particular has been underway for years. we first reported back in 2018 on its intention to design its own displays, beginning with the apple watch.

and it will really now deal a blow to samsung, lg, the two main suppliers of screens for apple. shery: we have seen already the reaction of the chip sector and the supplier sector this week when we heard about those news of components being switched out of broad, common and qualcomm. not a lot of reaction as of yet, gains of 8/10 of 1% but we will continue to monitor the trading session today. former imf chief economist oliver blanche chart says declining energy prices will only solve part of the global inflation problem. he told us central banks face the tough issues of policy lag and the possible false dawn as price pressures ease. >> i think it goes back to the inflation process. i'm slightly older than you are, so i've seen it before. and it seems to me that it's in between those. it seems to me that i have seen it before, and the issues are

always the same, which is inflation. part of it will go away because part of it is due to energy prices and these are going to decline. they have started declining. but we still have to basically slow down the economy a bit and we don't know how resilient the economy is. in the textbook or in this simple five stories you hear on the radio, you basically increase the interest rate and the economy just slows down, but you don't know how easily you get to that, so i think that's why the fed, the ecb and what all central banks are facing. which is, should we do more hour we do less? and if you give me two minutes more, the first one is what we call lags, which is that even if it works, it doesn't work right away. so you have to kind of stop tightening or going easy before you have seen the results because the results take six months or a year. and then in the amount of

respect, which is in this case, is that some of the factors that increase inflation, turnaround on their own, independent of the fed and the ecb, so energy prices -- prices go down, and that is a false -- which is, inflation falls, and it is falling now, most of the numbers are good and some people say, good, we are done. shery: former imf chief economist there. our next guest says the global economy is on the precipice of recession and the consensus is underestimating the potential depth and severity of the downturn. joining us now is jeremy lawson, head of the aberdeen research institute. good to have you with us. how bad could it be, and who could surprise to the downside? >> i think most of the advanced economies would surprise to the downside in those circumstances. so your watches which is see

olivier blog shard talk about the false dawn, that's right. headline inflation's declining because of energy prices, and also the recovery and supply chains. but labor markets are still far too tight and most economies underlying wage growth to a high. in the amount of adjustment you need in the market in nearly every advanced economy is so significant, it's very hard to see how most economies will escape a significant recession. and even though there are reports of a lot of economists expecting recession now, if you look very carefully at that, most are expecting while recessions. the mildest in the postwar time, we just don't think that's a most likely way these unbalances unwind. shery: how bad could get for china, because we are seeing more policy measures, we are seeing un-easing of those crackdowns that we've seen a difference that others, do you still expect china's growth to

really undershooting expectations? jeremy: i think china is in a very different position, airy near term is obviously difficult as it is scoping with the surgeon covid cases. so, the fourth quarter of 2020 two, q1 this year, they will be challenging a very weak growth, but after that there's just a lot of pent-up demand in china and it will be released as they move to endemic living, just as we saw another economies. so we think the chinese economy is going to massively outpace the rest of the world as we go into the second half of 2023 and into 2024. haidi: near-term challenges but also longer-term challenges for china, so i guess we have a sweet spot in the middle where you get that flattery year on year comparison. but the longer-term challenge, demographic, debt, property sector, these are all pre-covid headaches, is there any prospect

to some alleviation there? jeremy: i think you are exactly right, the cyclical factors are going to push up growth a lot over that 12 month timeframe. but what china really needs is really significant structural economic reform and that's been mostly lacking under their current administration. and as you point out, the demographic headwinds are very significant to labor productivity growth. they need to pick up to offset these dues, including from the property sector, where there is a multiyear adjustment taking place, even if the worst might be behind this, you do have to get used to a world where chinese growth on averages between 4% and 5% instead of this 6%, summer percent, 8% ranges that we saw on the post global financial crisis time. haidi: we just had australian monthly cpi, which has been a very useful regular gauge to have, and that exceeded along with retail sales. does this potentially speak to

you about the volatility of the inflation outlook or broadly that perhaps there are sticky factors here that monetary policy is unable to effectively address? jeremy: keep in mind that the reserve bank has probably been one of the central banks that been most optimistic about being able to engineer a soft landing and trying to signal the policy weights -- policy rates don't need to rise as much as other policies, particularly the united states. the strength of retail sales, strength of underlying inflation really does signal just how significant job the rba still has to bring inflation down. keep in mind that it will benefit for the recovery of china, so you are getting a new demand-side into australia at the same time you're trying to battle these domestic pressures. so i think it just underlines that the job is definitely not done yet. haidi: do you buy into the idea that we will see a big

reflationary effect out of china that will see significant upside when it comes to energy prices -- for example, commodities prices, and that would then really push the fed to have to adjust policy very quickly? jeremy: i think it's true that -- particularly as transportation ability increases in china, that's going to put some upward pressure on energy demand, oiled to band in particular. but the two points, one is that most of the recovery in chinese growth, i think it will be in the services sector, domestic demand, there may be other recoveries in chinese history. secondarily, you will get a lot of weakness in demand in the advanced economies and those emerging economies that we think will go into recession. so we actually think that commodity prices, oil prices are more likely to fall from current levels then rise from current levels, at least with these

recessionary forces globally playing out. china provides some offset but not full offset. shery: talking about emerging markets, looking up result, given the political chaos, not to mention the world bank cut its forecast for growth in the country, and we are talking about a market slowdown from last year, will they be able to cut their key rates? they were so aggressive and hiking rates, but even today cpi numbers really coming in much faster than expected. jeremy: the advantage brazil has is that it got ahead of the game more than any other central bank. so even though inflation surprise the upside in this month, it's still well down from the peaks that we saw through your a lot of 2022. but policy does have to say restrictive for some time, and that's that backdrop, particularly where it still clear that the fed has to keep monetary policy tight over the

past coming months. that the first half of the year will make it difficult to engineers who did outright rate cuts. but when it does start loosening policy, which is what we think will happen once the recession is fully entrained, then you will expect big rate reductions in brazil and other emerging economies. haidi: jeremy lawson, chief economist ahead of the aberdeen research institute. and we are seeing a conclusion of that north american leadership 20 -- summit for 2023. awaiting president biden set to depart on air force one to return to the united states. we did hear from the three leaders earlier talking about the gains being made in these talks after taking place over the course of the last two days. and of course we do expect another meeting between justin trudeau to take place on wednesday. when it comes to the topics that were being discussed, of course

trafficking, as well as those migration tensions have been top of the agenda. we did see that framework when it comes to that in the idea of increased cooperation, increase integration for better regional growth. particularly the time that we see such severe growth headwinds for the global economy. shery: we were also listening for any clues of what those strengthening of supply chains measures could look like. we heard about a committee from the three nations that will work on a north america import substitute. of course we had heard throughout the summit that the three countries will be aiming to coordinate investments in semiconductors are manufacturing. this of course is in an effort, we heard, that president biden is trying to shift chipmaking from asia to north america. he has been very vocal on strengthening those supply chains, especially given what happened during the pandemic, and he said in his own words

that no one can arbitrarily hold us up when it comes to access to critical elements. we are now awaiting president biden boarding air force one to leave mexico city after the north american leader summit. this is bloomberg. ♪

shery: apple is planning to

start using its own custom displays and mobile devices as early as 2024, an effort to reduce its reliance on tech partners like samsung and lg electronics. bloomberg tecra reporter mark gurman joins us with the latest and this is following news that they might use in devices for -- to swap out broadband qualcomm as well. tell us about this drive and why now. >> apple over the last decade or so has been looking to move more of the components away from third suppliers into their own in-house designs. this is going to continue now with displays. you mentioned broadband and qualcomm. now stream samsung, lg, boe, lg, the japan display, those are primary suppliers for apple today. now they will do their own starting at the end of next year or in 2025, starting with the apple watch. they have this very advanced

technology known as micro lag, it makes the colors on the screen -- it makes the imagery look like it's painted on top of the glass. it's very advanced compared to oled and other types of screen technology and now they will roll that out on the watch beginning next year in 2025, and then on top of that they're looking to move into the phones on their other products down the road. long-term, samsung could be losing some business here. haidi: what does it mean when it comes to supply chain? the designing themselves, who will make it and where? mark: so they are designing it itself, and these are going to be massed produced using an outside supplier as well. it won't be samsung, we are not naming which company is going to be doing the mass manufacturing at this time, but obviously apple won't be doing the manufacturing itself. haidi: are there implication when it comes to how quickly

this could be rolled out? is there a moving target and all of the product would be replaced at the same time or will it be a softer launch to begin with? mark: it's going to be a softer lunch, they will start with the apple watch, not only that, they will start with one version of the apple watch. so if you remember in september they rolled out three new watches, the apple watch fc, apple watch series eight in the apple watch ultra. that's the highest and most expensive watch you can get from apple. that's the one that's going to move to micro led technology beginning next year in 2025. that's because apple has more room, these are more expensive displays with more advanced technology so they in a pricier project to roll it out more quickly. the other thing to note is that this technology is very technical -- difficult to mass-produce. seeing smaller amounts of units, the watch ultra is the small units based products so the apple watch itself. the other thing to note about

the apple watch is that the display is small. there's a very intense process that needs to be done to integrate these screens into the devices. the smaller the display, the easier it is. it will be a long, long time if you ever see these in an ipad or mac. haidi: another great scoop there from our very own mark herrmann on apple's latest plans. let's look at the markets reactions today. he had an optimistic start as we see investors really weighing potentially softer inflation giving the fed a little bit more to still put in place some sort of policy pivot. but, not so much the case when it comes to australia. before that, let's take a look at trading when it comes to japan. still close to 1%, the kospi giving up the earlier levels of gains, but still higher by 3/10 of 1%. we haven't seen a great deal of reaction when it comes to component supplies, including the likes of samsung. australia, we have that upside result not just when it comes to

monthly inflation but retail sales. we see that boosting the great pressure for the rba as well, also seen the big reaction when it comes to short-term yields, potentially further moves in the aussie dollar as well. shery: 10 year yield above that 374 level for aussie yields at the moment. coming up, we will talk about whether china's lengthy clamp down on its biggest internet firms, as well as the regulatory oversight are done. this is bloomberg. ♪

shery: there may be good reasons to believe china's lengthy clampdown on its biggest internet firms to be almost done, but that may not mean that reglet tory oversight is actually over. let's bring an hour chief china market correspondent heard sophia, of course markets have rallied because of this belief. what are you seeing? sophia: i think you hit the nail on the head. the fact that the rectification, as china likes the color, of the platform companies is nearing its end like was said, he's a key figure at the pboc, a very important indication that it's being or wrapped up, doesn't mean that china will stop regulating the tech sector. it doesn't mean that there's a reversal here. and i think that's a very important distinction.

our cats are rallying on this news, the tech sector is the biggest target for fun flows right now, especially coming from abroad, but a word of caution, this is not a reversal or bringing it back to where the tech sector was before, the high-growth era is not coming back. shery: our chief china markets correspondent, it really is a new normal. that is it for markets asia. markets coverage continues and we look ahead to the start of trading in hong kong, shanghai and shenzhen. numbered markets china open is next. -- bloomberg markets china open is next. this is bloomberg. ♪

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