shery: you are watching daybreak asia coming to you from new york, sydney, and hong kong. annabelle: we are counting down to the market opens in tokyo and seoul. haidi: the top stories, investors are bracing for the bank of japan's policy decision and possible action on yield curve control. we are live at bank of japan headquarters. world leaders sounding upbeat on growth prospects for 2023. china's top economic official telling davos that life is back to normal. plus, hong kong's finance secretary talks to some of the economic boost for the reopening of the mainland border and the cities produce -- pursuit of fresh ideas. annabelle: at the opening of the asx 200 we are seeing a drop for the second straight session. what is driving that from the wall street session is this outlook for corporate earnings and also the prospects of further fed tightening ahead. as a barometer of risk appetite we are also keeping an eye on

the asean this morning. that is still moving fractionally high, so investors into term of the rallies we have seen over the first couple weeks of the year. something that can really change the direction of this currency here today is, of course, the bank of japan. we could see big shifts in either direction on the dollar-yen. we are keeping an eye on what is happening overnight implied volatility, because that has spiked to its highest since 2008, back in the financial crisis. big moves out of that seminal decision later today. very much alive meeting coming to a close, and kathleen will go through the details in a moment. also in terms of what we are watching in terms of asian trade, in new zealand we are continuing to see the impact of really what has been a global front runner in the central bank tightening cycle, the rbnz. we are seeing credit card spending falling in new zealand for the first time in nine months, and home sales have dropped nearly 40% in december. some of the impacts we are

seeing from tightening. shery: interesting you mentioned the dollar-yen pare because we could see more upside for the japanese yen. goldman sachs seeing a bleak set up for the dollar, given global central banks starting to tighten. take a look at how we are setting up in u.s. futures at the open in asia. we are looking at pressure after really stocks struggled for direction in the new york session. we are talking about the dow losing almost 4400 points, while tech stocks remain in the green. we had earnings setting the tone, we were looking at banks under little pressure, goldman sachs seeing their worst day in a year given the earnings miss but also disappointing u.s. manufacturing numbers. a mixed picture in the treasury space with the 10 year yield above 350 but the two-year yield under pressure. in the asian session, we are seeing eight sessions of gains in the new york session. it is all about the optimism and bullishness about chinese demand. yes, the caveat, we had the

second worst growth economically in a eyar since the 1970's, but the quarterly numbers exceeded expectations. haidi: well, the bank of japan delivering his latest policy decision in a few hours. kathleen hays is on the ground in tokyo. kathleen, i cannot recall the last decision where there was much -- where there was this much anticipation. kathleen: nor can i. but again, for how many years, really since 2013, the bank of japan has been committed to a policy of extraordinary stimulus. the rest of the world has moved away from those concept policies. the boj, many considerately last central bank standing on this point. and it did make a move, december 20 widening the very important yield control band to 0.5. governor said it was not a policy change, that is a tweak. we want to make the bond market

function more smoothly. what has happened? a lot of pushing above from investors, pushing the yield to top 0.5, the top of that ycc range. so will they widen the banned again today? economists say so. governor kuroda will probably try to explain what they have done, how they are going to keep the yield curve control banned working. this is a big challenge. communication is going to be a major challenge if he does not widen the band again. it is going to be widened anyway. this is the beginning of the end of extraordinary stimulus. down the road sooner or later, new governor in april, it is going to happen. his governor kuroda going to continue to clear the bath -- path for the next governor? some people say maybe even to 1.0. then citigroup says they could -- that's a very small bet. it's a big question though.

ed rogers from rogers investment advisors, who we just spoke to in the last hour, saying he is sure there is a major debate going on inside the bank of japan as we speak. haidi: global economics and policy editor kathleen hays in tokyo. we will get plenty of analysis on the boj decision throughout the day, including views from martin schulz joining us later this hour. and of course what we are walking the bank of japan, we are also watching the latest data out of china. shery: especially at a time when top economic officials have sent a reassuring message to global billionaires and bankers gathered in davos that china will return to being a global engine of growth as soon as this year. for more, let's bring in stephen engle in hong kong. of course we still have not seen that growth target for this year but how bullish was the vice premier? stephen: he was pretty bullish. i have been asking a lot of

people that i run into what their outlook for the chinese economy. can it be the engine of growth this year if there is potentially going to be recession? i asked the former morgan stanley asia chairman, now yale university senior fellow, on friday he said he did not think so. he did not think china necessarily would get enough momentum. but leo hu definitely making a pitch to that fact that china will be able to return to upwards of 6%. higher 5% range, as early as this year. this was his pitch to those people, you just said, gathered there in davos. >> if we work hard enough, we're confident that in 2023, china's growth will most likely return to its normal trend, and china's economy will see a significant improvement, a noticeable increase of imports, more

investment by companies, and residential consumption returning back to normal can be expected. stephen: so if you are in the audience, you were on the fence on whether to invest in china, that might have been the pitch you wanted to hear, or did not want to hear. because he was bullish on a number of different fronts. let's run through them. on covid zero, they have dismantled covid zero and they are moving on from that. essentially liu says we must o pen up wider and make it work better. it is a key driver of economic success. saying the peak is this latest wave of covid infections has now passed, and consumption-related industries have returned to normal. that might be a little bit of a bullish assessment at this point, but they are gearing up for that national people's congress in early march where they will give the full-year growth target of likely around 5%. morgan stanley among others was

the latest to up its outlook because of the opening up to 5.7%. you see those other estimates on the screen. they might be altering as the weeks go by. now, on the private sector, we have been talking about alibaba a lot the past week and companies like that under regulatory pressure. he has allayed some of the concerns the central government has been, or will continue to put pressure on the platform economy. he says, a return to the plant economy was impossible, while common prosperity drive does not mean enforcing strict equality, it requires an entrepreneur early effort. so that is good news as well for all those western investors perhaps who piled into the adr's of chinese companies and have weathered a really bumpy ride over the last couple of years. and on property, another drag on the economy, he reinforced that real estate is a key pillar of the economy, and says recent measures to provide funding to embattled developers have led to

a, quote, noticeable improvement in supply and demand for houses. now, spinning it forward, this week we are expected that liu he , who of course is the top economic czar of china and the key confident of xi jinping, he will be meeting likely with the u.s. treasury secretary janet yellen at some point. could be imminent. haidi: stephen engle with the latest on china. let's get you to vonnie quinn with the first word headlines. vonnie: german chancellor olaf scholz says his country will avoid a recession this year as it faces down russia's energy squeeze. speaking exclusively to bloomberg, he said diversifying gas supplies has been critical in keeping the economy going. he told us germany is getting through the winter energy crunch in better shape than feared. >> i am absolutely convinced that this will not happen, that we are going into recession. and that we showed that we are able to react to a very different situation.

i think no one really expected that we would easily survive the situation, and there would be a complete stop of the supply of russian gas to germany and to europe. but we succeeded. vonnie: the white house has rejected calls from u.s. house speaker kevin mccarthy for president biden and senate democrats to begin negotiations on lifting the federal debt limit. republicans want deep spending cuts as the price for an increase in the statutory seating on federal debt, but the white house says the limits should be raise without conditions, accusing republicans of threatening the global economy. european commission president ursula von der leyen is calling on eu members to fast-track funding for renewable energy. she said that would help counter subsidies passed in the u.s. as part of president biden's efforts against climate change. she also took aim at beijing for its economic policies. >> china heavily subsidizes its industry, and restricts access to its market for european union

companies. we still need to work and trade with china, especially when it comes to this transition. so we need to refocus our approach on de-risking rather than decoupling. vonnie: 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'm vonnie quinn. this is bloomberg. shery: still ahead, expenses at goldman sachs surge amid shrinking revenue while morgan stanley gets a boost from its wealth management unit. we will get an update on u.s. bank earnings. up next, we hear on why they are increasingly come to be about adding risk into market pullbacks. this is bloomberg. ♪

>> the next shoe to drop has to be a decline in the economy. and in particular, a contraction in labor markets. because the core issue of inflation is wages. >> we expect to see a mild recession, largely driven by the painfully persistent service inflation. >> does that mean that central banks are going to keep retire for longer? maybe.

and that is the issue i have related to liquidity. >> you also need to look at the shareholder perspective. it is clear they are going to get cut on bonuses. shery: banking and business chiefs at the world economic forum in davos weighing in on inflation and economic risks. of course we have plenty more big conversations coming up from davos today, including the bank of france governor and the blackstone ceo. our next guest says he is increasingly come double adding risk into market pullbacks. let's discuss where the opportunities are with brian quartarolo, asia macro portfolio manager at mission crest capital management, joining me here in the new york studio. thank you so much for coming in. so where are those investable risk assets? brian: it seems to us that 2023 is sort of a mirror opposite of what we had last year. we came into last year listening

to central banks telling us that they were not going to need to tighten monetary policy, and it seemed pretty clear to us that they needed to. so we were short fixed income and long the dollar. this year is the opposite. since october we have been putting on risk parity trades where your long stocks, long bonds, as it seems like central banks will have to do an about-face. for us, that means buying stocks into dips, buying bonds into dips for the foreseeable future. for the most part that is because we think inflation has peaked and it is about the rollover. shery: does that mean the u.s. dollar has peaked and it could potentially give potential to asian assets? brian: absolutely. the home bias trade that sucked all the capital back to the u.s. last year is over and now it will start to flow back overseas. to be sure, that is helped by china. the end of covid zero is a massive opportunity given house

those markets have been devastated over the last few years. so we are pretty bullish china, pretty bullish australia. i think on china, it is really a combination of so many factors, not the least of which is household balance sheet repair. you have seen about 150% increase in household balance sheets net deposits over the last year. what are they going to do? they are going to go out and spend money. so that should really help underpin some of the consumption names in china. otherwise the pboc is one of the future until banks out there that is actually adding liquidity. so that should help underpin things. and as rebecca and sophia and so many people in the hong kong bureau have talked about, their restructuring effort looks real, so that should reinforce some of the issues in the property

market. haidi: do you worry, the risk with china always, even if you ignore the longer-term demographic challenges that are pretty stark with the latest data, but in the short-term you always want policy change top down from something really drastic happening to your portfolio. is that still a concern, or do you think there is more transparency now? brian: well, it's such a multifactor position. the view has so many different facets to it. could there be some risks from a super-spreader event post-lunar new year? if covid returns en masse, do we risk them shutting things down? it is a possibility. we don't expect that, given the significant shifts you have seen in policy. but that is always a risk. i think if you also look at some

of the explicit messages that have come out of china, particularly since xi's reappointment, it's pretty clear that they have moved away from some of the policies that were damaging to the economy and financial markets the last few years. so no, we don't expect a reversion to that anytime soon. and we will be buying h-shares, red chips, hang seng tech, china tech, going forward. haidi: are you bullish australia because you are bullish china? brian: well, look at the sun shining behind you. how could you not be bullish? no, i mean, it's one of those rare instances. as you know that market all too well. where you have both of the main sectors ready to do well. you have resources which are going to benefit from china's reopening, and you have also got

the financials where nims are expanding and it looks like the rba is going to thread the needle on a soft landing. shery: when it comes to financials in japan, anything you like, given that the boj is accredited tighten? brian: japan i'm a little concerned about because of this monetary policy implementation wrinkle with what is going on. so let's get some of their announcement fx out of the way first. shery: brian quartarolo, really good to have you with us. you can get a roundup of all of these stories that you need to know. dayb . this is bloomberg. ♪

>> as we said, our quarter was

disappointing and our business proved particularly challenging. these results are not what we aspire to deliver to shareholders. >> we are not of the view that we are heading into a dark period. whatever negativity in the world is out there, that is not our house view. so we want to make sure we are positioned for growth. shery: goldman's stock was punished as its investment banking shrunk, but rivals were boosted after the earnings reports. su keenan joins us with the latest. let's start with goldman, which was quite unusual to have such an earnings season. su: they are the big bank everybody wants to beat on wall street, and the results were expected to be bad. one analyst said they were terrible. so you had diversion results and reactions from wall street. let's go right to the stocks. you will see goldman got slammed while morgan stanley was

rewarded. and it suggests that goldman appeared to be punished by investors for an identity crisis. they were engaged in restructuring late in the year, backing away into consumer banking, while morgan stanley was rewarded for his clear strategy, which we will get to shortly. as for goldman, a much envied bank on wall street. it missed on profit and revenue. it was the biggest earnings miss in years. earnings fell by a bigger than expected 69%, much steeper than peers. fourth quarter compensation costs also rose about 16% higher than a year ago. investors did not like it, neither did ceo david solomon who summed it up in six words. simply set, our quarter was disappointing. the results cap a tough year for wall street deals makers, the shrinking size of investment banking, really a concern for investment bankers. haidi: morgan stanley, it is

really a case of their business model doing what it was built to do. su: they stuck with their business model. they rebuilt it to capitalize on wealth management, which really came in for them, particularly as you hav rising interest ratesce -- have rising interest rates. many of the other banks had higher expenses and a plunge in dealmaking which also hurt the result. drop into the bloomberg, morgan also saw a sharp drop in net income, down almost 40% from a year earlier. its expenses were higher any trading missed estimates. overall results were higher than analyst expectations, though, with particular strength in wealth management. as you heard ceo james gorman told investors in their conference call, he expects investment and deals activity to pick up once a federal reserve rate hikes, and he says he will bet the year on it. stay tuned. haidi: two keenan there with the latest.

the latest headlines this hour, credit suisse chairman is warning employees to face steep abundance cuts after what he called a horrifying year for the lender. speaking of the world economic forum in davos, he said it is not looking great as credit suisse embarks on a painful and costly turnaround. >> obviously we had such a poor year. it was a horrifying year for credit suisse. i think people have realistic expectations it will not look great. on the one hand you have the topic of retention. then you have plenty of parts of the group that is doing extremely well. you need to compensate somewhat fairly but you also need to look at the shareholder perspective. it is clear it should get cut on bonuses. haidi: a sentra cisco court assembled the jury that will take part in elon musk's security fraud trial. opening argument begin wednesday in the u.s. the tesla ceo is said to be the

star witness any hearing about his 2018 tweets about technique of any private in which he claimed funding was secured. lawyers will argue musk lied, causing deep losses from wild stock swings. coming up, fujitsu's chief economist. martin schulz is along with us next. this is bloomberg. ♪

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haidi: the bank of japan will deliver its latest policy

decision later after its easing program came under the most severe market attack yet. let's get back to tokyo where our global economics policy editor is standing by with the next guest. kathleen: i am standing outside the bank of japan. inside, everyone assumes there is a heated debate going on about what the bank of japan is going to do next after widening the yield curve control band in december and spurring a lot of bond volatility. i am joined by a special guest who is braving the cold of tokyo this morning, martin schulz, chief economist at fujitsu. thank you for being here. so, were you surprised last month when the boj moved and will you be surprised if they move again? martin: i was very surprised in december. it was really, we got up and, what? i think that was the idea of the bank of japan, shocking us a little bit during a quiet period when people were not moved too

much to testy market. it worked quite well. the yen behaved, became quite stronger as intended. then speculation was building up, until today where we are. kathleen: so what is going to happen today, or not? martin: the pressure on the bank of japan is certainly enormous to signal where they are going. but if they follow up with another move today, i would think that people are really betting on a major policy change that would probably be something to be left for the next governor of the bank of japan, and the next fiscal year from april. kathleen: so what would they do today, if if they decide, no, we don't need to widen the yield control band, even after they have been forced repeatedly to do yet another record amount of bond purchases. what do they say? what does the policy statement say? what does governor kuroda say at his press conference? martin: yield curve control is a

very complicated policy when interest rates are moving all over the place. this is the situation for the bank of japan. they might signal a bit more that they are going into the market in a more differentiated way, as they are already doing. not just the 10 year bond but buying at the shorter end quite a bit more to get up to 10 year yield curve. a little bit more in shape again and then signal, well, we are considering the next steps. let's see the complex change that will have to come during the year. kathleen: the bank of japan is not just going from one storage governor, kuroda, 10 years, wrapping up an activist, aggressive new programs to put money into the system -- and they did get japan out of deflation. now someone else takes over at the time when there is a new prime minister, questions about how the broader policy mix is going to change. what do you see there? martin: not just in japan, we

are seeing a move from very expensive policy towards fiscal policy. governments around the world want to get their economies going. they want to get much more sustainable. they want to have much more active fiscal policy that prepares for the future and gets investment rolling in coordination with the private sector. that means for all the central banks, better coordination with the government, being supported for fiscal policy, but not as expansionary just for nominal changes. kathleen: so what does this mean for the world? i mean, people are referring to the bank of japan as the last central bank standing when it comes to having maintained aggressive easing monetary policy. as we all wait for this decision, why is this important not just in japan, but globally? martin: japan has been focused very much just on its internal issues. fighting deflation, getting the aging economy going. now it is focusing more towards growth oriented policy. japan really wants to be back not just in terms of macro

terms, but it wants to be back in terms of getting growth going. new policies that are moving the market. and that could work quite well because, well, asia is on a roll with china opening up again. japan being part of that story, i think exporters, manufacturers, and the big service sector has a lot of opportunities where government becomes supportive. kathleen: march meeting, kuroda, term ends april 8. april 26 the new governor takes over. what is going to drive them? people are very focused on the spring wage negotiations this year. there is optimism that the increases are going to get bigger, and that will keep inflation sustainable, and that will enable the next governor to say, yes, we're beginning the normalization exit now. martin: companies are quite willing to increase base wages. they accept the story that japan is now coming back and moving. they want the government to signal they are more supportive in terms of productivity.

so, real changes in the economy. they will support that with higher wage. the problem is this year is a tricky year. china just opening up. the u.s., we don't know. europe already in recession. that means bonuses might not go up. when base wages are going up, that is what everyone wants, bonuses might not be as much. the overall macro impact might not be as strong as many are hoping. kathleen: dr. today, do you see the markets moving on this? do you think it is priced in that the bank of japan does not do anything today? are you waiting and bracing for bond yield moves, yen moves? martin: the markets are moving. this is why you are here. and for good reason. because no matter in what direction, foreign investors are so much more important. the bank of japan owns half of the market, so it is much narrower. any move, any change in perception is changing and moving the markets right now. the bank of japan is not fully in control anymore. so let's see how markets are reacting and pushing the

japanese economy. kathleen: well, that is what makes these days very interesting, if not entertaining. martin schulz, thank you very much. joining us as we wait for that bank of japan decision, four, 4.5 hours from now. we ahve more guests coming. back to you. shery: kathleen hays joining us from tokyo. as they were discussion the boj policy decision shaping up to be the biggest risk for the dollar-yen pare, for broader markets as well since the global financial crisis. for more, let's bring in mliv contributor garfield reynolds. let's talk about the dollar yen implied volatility. jumping the most since 2008. garfield: yeah, volatility of the dollar-yen pare soared above 50 overnight, it is just under 50 right now. those are well above levels we

saw during the pandemic, brexit. you have to go back to the global financial crisis in 2008, 2009. that implies that the current expectation from traders is there is a very good chance that the yen moves 2% one way or the other based on this. could go 2% stronger for the yen if the boj either just soothes markets are indicates that, yes, this is a step towards policy normalization rather than just a function tweak. on the other hand, the yen could drop 2% very readily, if, for example, kuroda convincingly stands pat and says no, we're not moving towards normalization, and we are going to get these 10 year yields under control so they stop hopping above the ceiling. so, that's currency markets. haidi: what about bond markets? we heard the call warning that if there is a significant

deterioration of liquidity, to basically avoid japanese bonds. is that something that is a risk? garfield: i think japanese bonds already an enormous risk. there is kind of almost only one trade going on in one part of the curve, and that is shorting jgb's. it is a mega short going on there. everyone wants to pile in. and that creates dangers in and of itself. if the boj was to do something that would target those shorts and make it hard for them, yeah, at some stage they have to get back the bond of the futures they have borrowed or sold. so if the boj messes with the availability of the securities, then you could see a massive squeeze that could blow a lot of these very aggressive bearish bets out of the water, and even send 10 year yields dropping back down.

the question is whether or not it wants to be that targeted. it might spur accusations it had done a bait and switch and lured people into the trade and then smashed them almost deliberately. be that as it may, that's a lot of concern. you can see across the globe there is plenty of concern about what the longer-term impact is going to be both in the japanese market, and especially on japanese investors. we have seen a strong move down in longer dated japanese yields. that's a sign that it could well be that those deep pocketed japanese investors like pension funds are bringing money back home out of australian government bonds, possibly out of treasuries as well. that creates risks for all of those markets going forward. shery: bloomberg's mliv contributor garfield reynolds there. you can also turn to your

bloomberg for more on the bloomberg -- more on the boj's next moves. let's get you back to belle. we have been talking about the yen volatility spike. what are we seeing when it comes to euro-yen trading? annabelle: this could be the currency trend to watch if we see any outsized the moves. we have seen quite big fluctuations in the euro yen over the past few hours. part of that is down to not only that yen volatility, these traders bracing for big moves of more than 2% in either direction, but also what is happening in the yen -- rather, the euro. seeing a lot of weakness coming back into the currency. that is after we had some exclusive reporting at bloomberg into what ecb officials could do at their next meeting. if we bring up the terminal chart, the expectation that was set out by christine lagarde in december is that we would see another half-point hike. but we have spoken with at least one official who tells us that perhaps other is a little bit of

anticipation now, or a move towards a smaller pace of rate hikes ahead. part of that comes down to the inflation picture as well, because it is back to the single digits level, partly down to what we have seen in europe which is essentially moderation in energy prices. natural gas is getting cheaper there. also the prospects for a less aggressive fed. these are some of the factors that have led to euro weakness, and makes the euro-yen a cross to watch later today. shery: belle there with a check of the currency space. of course we are waiting for that boj decision. the broad expectation is for no change in policy, but more economists watching whether or not we could get another tweak after the december shock tweak. it is not really surprising. you can see kathleen hays waiting outside the boj. this is bloomberg. ♪

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cheesecake cookies? [together] the chookie! manage all your sales from one place with a partner that always puts you first. godaddy. tools and support for every small business first. vonnie: here are the first word headlines. china's top economic officials of the world's second-largest economy is on track to rebound this year to its pre-pandemic rate of growth. speaking in davos, the vice premier said coronavirus infections have likely peaked following the lifting of most covid curbs. the chinese economy grew 3% in 2022, the second slowest pace since the 1970's.

the hong kong exchange's ceo things china's exit from covid zero could be a major catalyst for markets. he told the bloomberg forum in davos the city's financial markets may benefit from mainland investors looking to deploy excess savings. >> there is about $2 trillion of excess savings in the systems in china. $2 trillion. now with the reopening, that will have to be allocated somewhere. to travel, to purchase things. so that is a very significant amount. i hope a good chunk of that comes to the capital market. vonnie: pakistan's opposition leader imran khan has hinted about a return to the parliament after nine months of street protests that could not force the prime minister to call early elections. they are reporting he plans to put the prime minister to what he calls a test by asking for a vote of confidence. khan was disqualified as a lawmaker in october for not disclosing his assets. 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'm vonnie quinn. this is bloomberg. shery: the philippine president says economic growth should hold president at around 7% this year. speaking to us in davos, ferdinand marcos junior said strong fundamentals are hoping the nation weather shocks and a gloomy global outlook. >> i think we will be able to manage at least 7% for the last year. and we are hoping to exceed, and i think it will happen, we will be able to exceed our projections of 6.5% growth for next year. rather, for this year. again, we're optimistic that the growth rate can actually go beyond 6.5% and hovered maybe around 7%. for 2023. haslinda: what is driving that optimism? given that most are expecting a

global recession, 65% chance, they say, of that happening. >> because i believe that certainly there is so much room to grow, in the sense that we are starting very many new things now. i suppose like every other economy. the basics in our economy have been rather stable. our growth rate has remained above 6.5% for 2022, and i think 2023 will be the same situation. our unemployment rate is continuing to go down. for that, i look at the unemployment rate, and so long as the limit rate is not at an alarming level than it is quite likely you will not have to go through a recession. that is what we are counting on. the problems of course we face are similar to other countries, and inflation is actually the one thing that we are having to deal with and having to help

intervene in many ways to bring inflation back down. haslinda: inflation at a 14 year high. 11 crossing $11 u.s. per kilogram, and ordinary people are not able to afford that. what else can you do? pres. marcos: but we have done is we have increased the supply. it is very simple. it is really a demand and supply situation. the onions, for example, it is a very simple analysis. you look at our production rate and how much we produce, and how much is demand. and there is no way you have to import now. in the long term however, sugar is in the same situation. we have to import because our production is not high enough. but the long-term solution of course is to increase production. and that is what we are working on. so these are measures that we are doing. these interventions are, i think, until we get in place systems that will start to get

our production levels up. that is the long-term. haslinda: how successful do you think you have been as agricultural chief, given where prices are right now? pres. marcos: well, i think we can say that we have started already to rationalize the system. because there have been imports, legal and legal, ha -- legal and illegal, have been a problem. at the very beginning it was almost impossible for us to determine how many onions there were, how money -- how many we had in country, because some were smuggled in and we didn't know where they were, where they came from. so we have rationalized that now. and our importation schedules are well established and well understood, and all done in keeping with the consultations that we have had with all the stakeholders, including the onion growers in the philippines.

haidi: philippine president ferdinand marcos junior with haslinda amen there. it's worth pointing out these of the current forecast for philippine growth among economists surveyed by bloomberg . the consensus estimate is 5.5% at the top and is 6.4% -- top end is 6.4%. stay with us for more exclusive interviews. bloomberg will keep you up-to-date on davos throughout this week. this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh

shery: breaking news out of japan. we are watching the boj very closely but right now we are getting core machine orders ahead of that decision, and it is a big contraction for the month of november. month-to-month we are talking a contraction of 8.3%. and this is really much bigger than economists saddens -- had expected. it is falling from the previous month where we had growth of more than 5%. year-on-year numbers, also a contraction of 3.7%, when the expectation was for growth of 1.6%. perhaps not that surprising given we are seeing really clouds gathering over global growth, and manufacturers in japan have shown us that their mood has worsened for fourth consecutive quarters. we are now seeing core machine orders, which is sort of a clue

of where investments will go in the year ahead, really contracting. haidi:hong kong's financial secretary expects the city's economy to rebound strongly this year and the property market to stabilize. he was speaking at the world economic forum in davos. >> we expect this year the hong kong economy will rebound very strongly. we have already seen visitors coming with the reopening in borders. and exports will rise. private consumption with the arrival of visitors will also rise. that will help our tourism-related industries. haslinda: how quickly will that happen? paul: it takes some time. the first quarter may be slower. that it will pick up very fast. haslinda: what will it mean for

hong kong assets, in particular the property sector? we have seen home sales slumping 40% year-on-year. what numbers are you anticipating now that, you know, the city has reopened? paul: last year, residential property price in hong kong came down orderly, i would say, dropped by about 40% in the first 11 months. but transactions have come down as well, about 39% compared to the year before. recently we have seen signs of stabilization. not only in terms of price. transition volume has become very firm. but at the same time, interest rate hikes have not finished yet. people are still a little cautious because the external environment is still very challenging. haslinda: i want to touch on the ipo market. 2022 was the worst year since

the financial crisis. are you optimistic that will pick up, and where will ipo demand come from? mainly china, or domestic companies? paul: last year was tough globally. for the first 10 months, the market dropped significantly, affecting valuations, therefore affecting ipo interests. but the market picked up very fast. in november alone, by about 26%. this year, i am optimistic. because there's a recent announcement saying that international companies listed on the stock exchange can be included. so for those companies, they can access international and mainland capital, increase liquidities, providing additional support to their valuations. so our objective is, on top of mainland companies, we need to accept more national companies, particularly companies from asean, the middle east.

this is our prime target. haslinda: to that end, you have been seeking an ipo by saudi aramco. that failed in 2016, 2018. are you optimistic you can get saudi aramco to ipo in hong kong? paul: there are a great number of middle east companies that have great potential. recently i visited riyadh and brought very exciting opportunities. so we hope there is more to come. haslinda: saudi aramco perhaps? paul: we never give up. shery: the market opens in seoul and tokyo our next. this is bloomberg. ♪

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we are counting down to the major market opens. we cannot recall the last time we were this excited about a bank of japan decision. perhaps a tweak on its yield curve control's. >> even if there is no change, they still have to justify the no change given the reaction we have seen in the market as well as the broader volatility in the yen. >> this is certainly a big day for japanese markets with the boj decision do later. we are assessing that volatility we are seeing, particularly in overnight implied relatively -- volatility with the japanese yen. the boj certainly the big move

for markets. we are sam began trading fairly steady -- we are seeing the yen trading fairly steady. pricing for 2% in either direction. keeping an eye on the japanese ten-year yield today. a lot of bond buying, through from the boj. the nikkei is trading higher at the start. japanese banks are what we are watching. this is a sector that could stand to benefit if we see any policy tweaks later today. let's change now because we have the open of korea as well. we are in the korean won at the start of trade here. we have seen a drop yesterday back from the nine month high.

traders really assessing that rally. it is a proxy for risk appetite. also keeping an eye on tech stocks. we saw the nasdaq closing. nasdaq futures still trading a little bit weaker here. tech stocks leading the asx 200. bitcoin is i and its longest win streak and nearly a decade. focus is very much on the bank of japan. kathleen hays is on the ground in tokyo. what are you watching? >> i am watching to what everybody is watching come policy decision when it comes

out. you summed up the key points perfectly. i am outside the bank of japan. the consensus among economists and people who watch this closely is that governor kuroda is going to let the next governor who will take over in april take the steps like vitamin --widening the yield control band further. especially after the december shock with something that has resulted in yen volatility. it has forced them to come in and buy even more bonds. this is the big debate.

either way, he is going to have to explain what if mr. kuroda why the band? what if he does not do anything? the question will be argue going to lie low then and wait for the next governor? are you concerned about bond market volatility? martin schultz suggesting they will do something in between and give some kind of operational adjustment that is somewhere in the middle. lots of questions. we will get the answers in a few hours. >> kathleen hays right there in

tokyo. james, good to have you with us. we cannot remember in recent memory of boj decision that has brought so much in terms of anticipation. >> we are probably looking at the potential contagion in terms of interest rate market volatility passing to other areas. so far, we have not. cross are being fingers. -- cross our fingers. traders are betting in in one direction and some economists expect little or no action following today's meeting. to pass it on to the next boj governor to expand and explain

the path to what is the next stage of policy. the other asian currency that might be watching closely is the renminbi. it has strengthened quite a bit over the past months. there might be another round of stabilization. we see a little uptick in renminbi in the last couple of days, but so far not a lot of contagion to other asian currencies or markets. >> the other big uncertainty is how the economic recovery plays out for china. what are your expectations? global markets be in a one-way street in terms of optimism.

>> we think china's policy is at the point of no returning. it has to march forward. go through the pain of rising infections and things like that. try to contain as much as possible. once they go through that painful stage, we are quite positive that policy supports, whether on the fiscal or monetary side, we do think there will be continued momentum on recovery. it might be very weak in the first quarter given they just came out of covid. but we are expecting the second quarter will see a pretty strong rebound in chinese growth, in

consumption and perhaps earnings bottoming by that time. we do think there could be another like up. >> that recent rally we didn't investors to question whether or not we have more room for upside. what about fair valuation at a time when we are expecting the beijing government to really give some relief to these tech companies when it comes to the crackdown, but what if they do not? there was always policy uncertainty with china. >> i agree with you. there could be policy fine-tuning. as of now, i think the worse of the policy's organization should be way behind us.

--i think they need to look at the big picture to try to contain covid and market volatility. we are quite positive on some of the paths. within the chinese exposure that we have accumulated recently, we are planning to fine-tune to switch over to a little bit more onshore equity versus offshore. where we could see more diversification in terms of sector. >> is that also factor in that perhaps we could see more

monetary stimulus coming from the pboc? the very few central banks season policy. how do you play the policy diversions? >> i think for the first quarter, we will still see the chinese market and the asian market as a whole to benefit from policy diversions. we will probably see asia outperforming in the first quarter or so while big u.s. is looming into a slow down or may be a recession during the midyear. and then the chinese markets will probably take a breather and the u.s. will rebound. >> think you so much for your

time. let's turn to vonnie quinn. >> hong kong is going to end mandatory mask wearing in march or april. the city government wants to wait until spring to avoid a possible surge in upper respiratory tract infections. german chancellor olaf scholz says his country will avoid a recession this year as it faces down russia's energy squeeze. diversifying gas supplies has been critical in keeping the economy going. germany is getting through the winter energy crunch in better shape than feared. >> i am convinced that this will not happen. we showed we are able to react to a difficult situation.

nobody expected we would easily survive the situation with a complete stop of the supply of russian gas to germany go europe. >> the philippine president says economic growth should hold steady this year. ferdinand marcos, jr. said strong fundamentals are helping the nation whether shocks. he has faced multiple economic challenges. >> we are starting many new things now. i suppose like every other economy. the basics in our economy have been rather stable. our growth rate has remained above 6.5% for 2022. our unemployment rate is continuing to go down. 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. >> let's take a look at some of the movers in japan. >> taking a look at some japanese food stocks here. toyo is the latest company announcing price hikes. they will offset an expected increase in production costs. let's change now because 10 minutes in the session, we are monitoring the outlook for airlines across asia. these are mostly to the upside. eric united says the first quarter profits will be almost double.

we are monitoring moves in boy coin today -- bitcoin today. >> still ahead, president ferdinand marcos, jr. and why he expects the philippines to be one of the best at the in 2023. more next from the world economic forum. this is bloomberg. ♪

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>> if we work hard enough, we are confident that in 2023 china's growth will most likely return to its normal trend and china's economy will see a significant improvement, unnoticeable increase of imports, more investment by companies and residential consumption returning back to normal can be expected. >> the chinese vice premier's begin at davos. -- speaking at davos.

let's bring in cheese --chief asia economic correspondent in hong kong. >> a deliberate attempt to talk up confidence in china's economy. he made the point that the peak of covid infections has passed. he spoke about life returning to normal across china although that will be greeted with some skepticism. he said growth will probably return to trend. so a pretty positive outlook for china's domestic economy. that is what you would expect from an economic official. but there was a lot of skepticism on whether china can rebound the way authorities say they can given the scale of the public health crisis. >> what clues do we get from the latest economic numbers because

the market seems to be pretty positive on how they saw the details of the fourth quarter gdp numbers. >> gdp numbers were undoubtedly more upbeat. some skepticism when you look upon numbers. the contraction was much less than expected. a lot of it was down to sales of medicines, for example. there was a feeling among economists that the numbers due at least give a base for the recovery and the rebound. china has got to get through the help crisis to see what shape consumers come out of that. there are some skepticism that the rebound will not be what people think compared to the rest of the world. consumer confidence is weak. savings has been rattled.

there are two different views on how china's rebound goes. the numbers do suggest china certainly had a bottom. >> tell us a little bit about how the rebound will go. will there be more action, from beijing on pop up -- on top of all of those other measures? >> he was making the point that china will be buying more imports and will be open to more investment. it will suggest more industrial activity on the ground, more investment, more employment. domestically, there seems to be a lot riding on getting over the peak of the infections. he thinks the peak has passed. that is about getting consumers back out again, boosting their confidence, getting them spending. a lot will change and help the

consumer recovers. --will hinge on how the consumer recovers. >> the population data was interesting. what does this tell us about the longer-term prospects for china's recovery? >> absolutely right. that was the bigger take from yesterday. population fell for the first time since 1961. we know china has had an economy workforce population for some time now and the government has been trying to reverse gears and try to encourage families to have larger families, but it does not seem to be getting traction. this will become a critical issue for china. it is not the total size of population, it is the size of the workforce, how productive

the workforce is, how educated and skilled the workforce is. of course in china, they have a decline in workforce, which is a key concern. we know families are reticent due to the pressures of cost and everything else these days. they had not been growing their families at the pace the government wants them to. >> stay tuned for more exclusive conversations with chief executives and policymakers as bloomberg keeps you up to date on davos throughout this week. this is bloomberg. ♪

>> simply said, our quarter was

disappointing. our business mix proved challenging. these are not results we aspire to deliver to shareholders. >> we are heading into a dark period. we want to make sure we position for growth. >> we saw the markets react to those remains results. goldman sachs stock punished. bloomberg's su keenan joins us now with the latest. the quarter for goldman sachs an uncharacteristic dud. >> this is a bank that everyone wants to beat on wall street, it is very much admired, the strongest investment bank, but its results were a mess on profit and revenue. one of the biggest misses in years. this was a tale of two different

bank stories. goldman punished for what many investors view is a identity crisis. morgan stanley was reported for its clear strategy that is stuck to. we will get to that in a minute. at goldman, it was the biggest earnings miss in years. a 69% drop, steeper than any of its peers. expenses rose higher-than-expected. investors did not like it. as you heard, neither did the ceo david solomon, who some it up as the quarter being disappointing. a very tough year for wall street dealmakers. >> morgan stanley though a very different story. a sense that this rebuild of their business model was playing golf. >> a very contrasting view of

what is ahead. they are taken advantage of their strong wealth unit which boosted the bottom line. much like goldman sachs, higher expenses and a plunge in dealmaking hurt results. morgan stanley also saw a sharp drop in net income, down almost 40% from a year ago. higher expenses, but overall its results were higher than expectations, with the particular strength in wealth management. they were one of the four banks to put together more than 12 billion in debt for elon musk's takeover of twitter. >> to bury different sets of --two very different sets of bank earnings.

what a streak it has been a streak it has been for european stocks. the longest winning streak since august. a little bit about flat session. potentially a bit of profit taking or just taking a breather given that we have seen so much optimism in this rally. the ecb could be slowing the pace of its rate hikes as well. coming up, we will get more discussion and analysis. this is bloomberg. ♪ (jennifer) the reason why golo customers have such long term success is because we focus on real foods in the right balance so you get the results you want. when i tell people how easy it was for me to lose weight on golo, they don't believe me. they don't believe i can eat real food and lose this much weight. the release supplement makes losing weight easy.

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he saw what happened when china closed down.

>> i do think it is a very good signal. i will be supportive of a momentum. the true inflection point, we have not seen yet. >> i think china won't have a western-style financial crisis, but i think there is no question they have reached a point where they have overbilled housing, commercial real estate, infrastructure. >> the post-covid reopening of china is going to be the most consequential positive catalyst to global markets in 2023. haidi: some of the key takeaways. just where we go from there in terms of china's reopening, it won't adjust for mainland markets, but also the entire emerging markets complex. you can take a look at this showing that high correlation. and really where chinese dots , that is the line in blue, the emerging markets index

follows it in terms of how much further there is to go, how much further upside, that is also a matter for debate. city is saying we could see gains of more than 20% ahead. in terms of the market moves today, we are have an hour into the session e training today is looking fairly mixed. we do have some key factors at play. as u.s. corporate earnings, mostly positive on balance. other factors including the fed. importantly today, it is all about the bank of japan and that policy decision. no change expected in the key rate. the big debate is whether we will see any sort of policy pivots around yield curve control. how much anticipation there is. we need to look at some of the key metrics. when you take a look at the decisions, post 2016, the average is for the decision to

come at 12:05 a.m. local time. a range of one standard deviation is up to 12:22 p.m.. if we do go beyond that, that does tell us perhaps there is some sort of change underfoot. shery: i remember years ago, we do have a bet in hong kong, when the decision is coming out for a few years, it became really boring. again, a lot of excitement, i really can't member the last time we were so anticipating the boj decision. the markets are already positioning, surging to the highest since the global financial crisis. let's bring in chief rates corn, -- chief rates correspondent. we could see a huge move if the boj does something, like it did in december. garfield: we could see a huge move if the boj does nothing. because, there has been a lot of

tension building up. apart from anything else, it seems unlikely they would do nothing, but it seems very unlikely that they would do what they did at the last meeting. there is a lot of tension out there. also a lot of pretty one-sided bet in the bond market on the idea that the boj is going to have to scrap yield curve control. if they don't do it now, and if there is going to be a move that they could loosen yield curve, the yield cap the same way they did last time. a lot of bets that yield are going to go up. that makes you nervous that they could either go down a long way if the boj bites back, or that the yields could really jump, if the boj fails to reign things in. there is a lot at stake, whatever the boj does. in particular, whatever they say. they wrote claim seeing the

shift in the yield curve ceiling was a technical move and an improving market function. it has instead make market function far, far worse. it needs to find some way to wake up from this. shery: exactly, liquidity has really fallen since that week. when it comes to not doing anything, how could the boj do nothing without making things worse? garfield: if it does nothing, then it sets itself up having to buy massive amounts of bonds, almost any day. yesterday there was a calling in the purchases perhaps that we need -- because the boj was meeting. some realization that it might be prudent to square up positions before the meeting. if they come out and we say we -- they say they are doing nothing, that sets the mark for

a pace of bond buying that is simply unsustainable. they probably increase their holding in the bond market from 52% to about 53%, halfway through january. that only gives them about half a year before they would be literally no bonds left in the bond market but in private hands. obviously, they would run into serious barriers as well before they actually reach that level. one way or the other, they need to change the narrative, even if they don't change the rules. shery: thank you so much, garfield reynolds. tune in to bloomberg markets asia as we bring you the boj decision live. we also have plenty more guests lined up. haidi: we do have breaking news when it comes to ftx. we are just getting a tweet from

sam bacon freed saying that ftx u.s. was and is solvent. he is also linked to a document providing some details when it comes to the ftx u.s. balance sheet. this was dated the 17th of january. according to this tweet, it is a document released by solomon and cromwell with that information about ftx u.s., really clarifying some of these claims and the data that was put forth in this document as well. this, of course, as we continue to watch in terms of the latest with this -- these proceedings and saying bankman-fried, quite often taking to social media to offer some of these very detailed descriptions of what unfolded with ftx as he prepares to fight his charges. let's get you to vonnie quinn. vonnie: the white house has rejected calls from u.s. house speaker kevin mccarthy,

president bynum and summon crowds to begin negotiations on lifting the federal debt limit. republicans want the spending cuts. the white house says the limit should be raised without conditions, accusing republicans of threatening the economy. china says the world's second-largest economy is on track to rebound this year to its pandemic rate of growth. speaking at the world economic forum, they said coronavirus infections have likely peaked, following the lifting of most covid curbs. the chinese economy grew 3% in 2022. the second slowest pace since the 1970's. european commission president is calling on eu members to fast-track funding for clean technology and renewable energy. she says that would help counter subsidies passed in the u.s. as part of is it an's joe biden's efforts against climate change. >> china, heavily subsidizes its

industry, and restricts access to its markets. for european union companies. we still need to work and trade with china, especially when it comes to this transition. so we need to refocus our approach on de-risking, rather than decoupling. vonnie: global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. haidi: still had, we hear from the philippine president who remains optimistic on growth despite growth at 14 year highs. this is bloomberg. ♪

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haidi: the philippine president is defending his actions after cpi hit a 14 year high. speaking to us in davos, he said despite that, strong fundamentals should stay at around 7% this year. ferdinand: i think we will be able to manage at least 7% for

the next year. we are hoping to exceed, i think it will happen. we will be able to exceed our projections of 6.5% growth for next year. rather, for this year. again, we are optimistic that the growth rate can actually go beyond explain five and have or maybe around 7%. for 2023. >> what is driving that optimism, given that most are expecting a global recession. 65% chance, they say ferdinand: there is so much room to grow, in the sense that we are starting very many new things now. i suppose like every other economy. the basics in our economy have been rather stable. our growth rate has remained above 6.5% for 2022. i think 2023, it will be the same situation.

our unemployment stays, is continuing to go down. for that, i look at the unemployment rate, so long as the unemployment rate is not at an alarming level, then it is quite likely that you will not have to go through a recession. that is what we are counting on. the problems that we face are similar to other countries and inflation is actually the one thing that we are having to deal with and having to intervene in many ways, to bring inflation back down. >> inflation at a 14 year high. the ordinary people are not able to afford it. what else can you do? ferdinand: we have increased the supply. it is very, very simple. really a demand and supply situation. the onions, for example. it is very simple analysis.

you look at our production rate, and how much we produce, and how much is the demand? there is no way you have to import them. in the long term, however, sugar is in the same situation. we have to import because our production isn't high enough. the long-term solution, of course, increase production. that is what we are working on. these are measures, these interventions are, until we get in place the systems that will start to get our production levels up. >> how successful do you think you have been, as agricultural chief, seeing where prices are right now? >> i think we can say that we have started already to rationalize the system. there has been imports, illegal and legal have been a problem. at the very beginning, it was

almost impossible for us to determine how many onions there were and how much we had in country. because some of it was smuggled in and we didn't know where they are and where they came from. so, we have rationalize that now. the implication schedules are well-established and well understood. and all done in keeping with the consultations that we have had with all the stakeholders, including the onion growing in the philippines. >> i want to talk about the south china sea. you said you want to resume talks of oil exploration in the south china sea with china. how do you think you can break that stalemate? ferdinand: that is a difficult thing to have to do. the past has occurred in the application of law. both sides say that this area belongs. we say it is maritime territory

of the philippines. and of course, china claims the same. the application of law is -- the chinese side insists it has to be the chinese law, philippine side, the same. we may find a way around that. limited to exploration. hopefully, i think there is still some give and take possible. >> what are the red lines for the philippines and what areas are you willing to concede? ferdinand: we cannot concede any of the territorial claims that are being made against our established territory. that is the redline, that will not move, it is something that we cannot cross, because it is a very slippery road from there. >> there are reports suggesting that china's malicious, swarming, and perhaps looking to seize some of the land features. what are you doing about that?

is there any tension of lodging, diplomatic protest? >> we send notes, and we bring the attention, that is why when i met president xi jinping, i said, we have to find a system so that these sort of things do not happen. if you look at the, we will call them incidents, that have been going on in the past few weeks and months, it really is a very clear indication between the two sides. i suggested, and i think we are going to establish it, we will have a line of communication that is higher up, so that -- we have already a bilateral group working on the issues in the south china sea, west philippine sea. i think that it should be raised

to a certain level so that the members of that bilateral group can directly call their president. so if there is a problem, a decision that needs to be made, my team can call me direct the, and the same for the chinese side. shery: the philippine growth among economists surveyed by economists, the consensus is 5.5%. up next, interview with hong kong ceo. he tells us how they will supercharge markets and beyond. this is bloomberg. ♪

haidi: exchange ceo says china's exit from covid zero will be a major catalyst for markets and the city will benefit the mainland investors looking to play access savings. nicolas: the reopening of china in particular has been faster than what many people predicted. if i had asked you three months ago, would we be in this situation by early january >> of complete the opening up? it would have been really difficult to predict that. i do believe that post-covid

reopening of china is going to be the most consequential positive catalyst to reopen markets in 2023. it is very significant and of course, hong kong is in a very unique place to take advantage of all the opportunities that come out of this reopening right now. we are seeing a lot of chinese companies in the technology area not want to list. some of them don't fit the criteria, so we are adjusting, working on a new listing regime that would essentially allow companies with no revenues, no profitability, that they have high valuations, high investments in r&d, quantum computing, space technology, areas that are a little bit different. that requires that we adjust the regime to really fit the companies of tomorrow for the

first time ever. international companies that decide to make hong kong the home for listing. either duly listed or listed in hong kong. they would quantify to be able to be bought by investors from the mainland. >> not long ago, quite a number of chinese companies listed in the u.s. were at risk for being delisted. that risk has eased somewhat, and those companies were looking at dual listing in hong kong. is that not part of the plan anymore? nicolas: we have a lot of companies that want to have a dual listing in hong kong. we have dual primaries, we still have lots of them in the pipeline. but, our preference is that companies have an option to list everywhere. i am very happy, actually, if there is an agreement and companies can list in europe, in singapore, in new york my that

means there is flow. there is transactions. the east and west are communicating. there is conductivity, bridges being built. that is good, that means that investors will feel really comfortable coming to hong kong, setting up operations in hong kong, and continuing to build that conductivity. today, there is about 120 trillion dollars of debt and equity being allocated to different markets. and international money that goes into the mainland, only about one trillion. only about 1%. very insignificant, the world is massively under invested in china. something important around covid that i want to make sure people know, over the last two years, savings in china, which traditionally it is around 20% of possible income. over the last two years, that jumped over 30%. there is about $2 trillion of access savings in the systems in

china. 2 trillion. now with the reopening, that will have to be allocated somewhere. to travel, to purchase things, that is a very significant demand. i hope that a good chunk of that comes to the capital market. shery: hong kong exchange ceo speaking with haslinda. we have plenty more big interviews coming up from davos today, including conversations with the bank of france governor, as well as the blackstone ceo. let's get you a quick check of the latest business check. coinbase is assessing global operations to ensure they are appropriately sized for ease market. they set earlier this month it would cut 20% of its worth first globally -- workforce globally. it plans to grow internationally. goldman sachs has reported a bigger increase in expenses than expected after setting aside

more compensation in the fourth quarter. a conversation cost of 3.8 dollars were 16% higher than for the same period next year. -- last year. they also poured billions into its retail effort. credit suisse german -- warning employees faced steep bonus cuts after what he called a horrifying year. speaking at the world economic forum, they told bloomberg that it is not looking great. as credit suisse embarks on a painful and costly turnaround. >> obviously, we had such a poor year. it was a horrifying year for credit suisse. i think people have realistic expectations that it will not look great. on one hand, you have a topic of retention. and then we have plenty of parts of the group that are doing extremely well. you need to compensate somewhat fairly, but you also need to look at the shareholder perspective.

haidi: some stocks we have been watching, crypto related shares could be following the overseas peers, higher, after bitcoin headed for a 14 day advance, trading above the $20,000 level. united said its first quarter profit would be more than double analyst estimates. that is it from daybreak asia. we will look ahead from the start of trading. we do have the boj decision coming up as well. standby for "bloomberg markets: china open" this is bloomberg. ♪

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