>> you are watching daybreak

asia coming to you live from new york, sydney and hong kong. >> we are counting down to the market opens. >> australia has just come online. a wall street rebound, investors turning a blind eye to some mixed messages from u.s. economic data. intel tumbling in late trade after they missed estimates and week pc demand. toyota to replace its longtime ceo to steal the race against has lot in electric vehicles. >> it is a very good day in wall street. the s&p 500 gained more than 1%. the nasdaq up nearly 2%. elon musk 24 hours ago giving an upbeat view of production for his company.

the gdp number coming in stronger than forecast. in futures trading, maybe some of the optimism is pulling back a bit. s&p futures up about a third. we did get those intel earnings, they just fell short in so many different ways. intel down more than 6% after hours. revenue $2.5 billion. there was an estimated loss per share. all of that we are seeing reflected now in the futures market. bonds had a pretty good day. yields up about 3.5%. in the futures market, oil gaining a bit. it ended up $81 per barrel.

what is going on in asian markets? >> we have seen oil moving higher on the short-term demand outlook. in asia, we are seeing some gains, we are projecting .8% upside in the first two minutes. the asx 200 has performed up more than 6% so far. we are looking at the best start of the year since 1994 if it holds. a level of optimism coming through in the markets. we do have signals that the u.s. -china trade relationship is improving. president xi jinping says is a -- eight is heading in the right direction.

the rise in energy has been a big contributor to inflation. the core rating projected to expand 4.2% in the latest reading. we are also watching new zealand. optimism coming through in the chinese session. hong kong back online. >> a lot of excitement. u.s. type mega-caps have empowered a new rebound. -- u.s. tech mega-caps have powered a rebound. so many different things in move in stocks today. a bullish sentiment today. >> it was definitely a choppy

trading session in the u.s.. we have the economic data coming out going data seem like throughout the day traders trying to parse through what this means for the path forward for the fed. when you see these economic data releases and they are pointing to a stronger economy, it could mean for the bulls that we are getting toward a soft landing. it could also mean that jay powell means -- thanks the economy is resilient. ian lyngen thinks the fed will do rate hikes in the next few meetings. for almost a year, the fed has been trying to achieve that soft landing and it is clear the

economy remains relatively strong in the faith of the fed's efforts, suggesting they are succeeding. we will see if that materializes. >> speaking up a great deal of uncertainty come out outlook for technology. you see a tale of two stories when it comes to the labor market affecting technology. what is the outlook when it comes to technology stocks and this debate in this environment. do you cease the value and growth shift -- do you see the value and growth shift? >> we are seeing with some index rebalancing technology becoming a little bit more of a value stock and some surprising stocks becoming growth.

exxon is one of the largest holdings with some about technology stocks. amazon still in the growth index, but it is waiting in the s&p value index. what exactly does growth and value mean? what does technology mean going forward? we are not going to see the same technology dominance in these indexes. when you look at the s&p 500, we still have a very large weight. when we see tesla rallying after its earnings, does lift the entire market. >> sticking with technology, intel has given a dire forecast. let's bring in tom giles.

the turnaround outlook is just painful. >> at the low end of their forecast for sales in the current quarter, we just did the math. this will be the lowest quarterly sales for intel since 2010. so 12 years of sales. you have to go back 12 years. unprecedented. what you are seeing right now is a very negative trend for intel. when you use the bloomberg function, that tells you when a company reports results and to what extent they were surprised. this was the second time in just three quarters where they surprised to the downside on eps. the third time in terms of

revenue. this is the company that typically has been suppressing to the upside. suppressing people with better results than expected. but lately, it has been a very different story from intel. the surprises are negative and they are big. >> i wonder, what does this tell us about other chip stocks? if intel has missed estimate, what does this mean for other chip stocks? >> you are seeing others drag lower in late trading. this is the real indication of major slump in the pc market, personal computers. they have unsold inventories that they need to work through. those inventories are stockpiled and they are cutting borders or not ordering it intel right now.

they are saying we have to work through this stock of chips that we amassed during the pandemic. remember during the pandemic when you cannot get enough chips. everybody was on their laptop or their pcs. we needed chips, there was a shortage and now the pendulum has swung in the other direction as you so often see in the semiconductor market. intel is suffering as a result. >> what does it need to do strategically to try to counter any of this? are there any positive spots? >> intel is also a leader in server chips, those are the chips that go into the really powerful machines that corporations use. they are a leader in that market. they will also see a slump in back in the first half of 20, but they expect some rebound in

the second half. another area, they are taking steps to reduce costs. they announced a few months ago job cuts that was going to save $3 billion. more cuts, cutting back on spending, investment in plants. that will save another $10 billion. those are the kinds of things that intel needs to be doing if they want to see their margins get back into the right direction, if they want to see eps going in the right direction. >> a lot of steps still to be taken. moving out to toyota. really big story. replacing its ceo as competition in the electric vehicle market threatens its dominance. koji sato will take the top job

in april replacing ceo -- the current ceo. let's bring in reed stevenson in tokyo. what does this mean for toyota? is this about a big catch up in? is this the right person to lead it? >> that remains to be seen. it is interesting that koji sato has a background as chief brandon officer -- branding officer. you will probably see more direct message and possibly, or at least clear message and around the toyota strategy. it is investing in electric vehicles significantly, but it is also looking at other technologies and obviously stick into hybrids, which still deliver a lot of fuel economy

and are extremely popular with car buyers. perhaps the messaging might shift a little bit. >> across the broader industry, there is quite a bit of shakeup going on. >> you have to remember of course toyota is the world's number one automaker, which gives it resources to be flexible and really invest for the long term. and so, bear in electric vehicles and they will continue to push forward with them. they have come under criticism for perhaps not moving as fast as the likes of tesla, which has overtaken the rest of the industry in terms of market cap and deliveries. china byd is coming on strong. there will be a lot of

competition in the battery based ev space. this is a tortoise and hare situation. everybody knows a shift will happen, but not everybody is sure how soon and one. lesson 3% of the world's automobile sales are a lot vehicles right now. -- electric vehicles right now. >> let's get you to vonnie quinn. >> indonesia central bank has signal the current round of tightening is coming to an end. they have height 225 basis points since august. the governor says that is sufficient as he now sees a lower peak rate. >> there was some of you that we would be going to 6%. but now our assumption is it

will be 5.25%. this is more certain now compared to last year. >> companies linked to ndma billionaire gautam adani planning to issue a response to short seller reports. hindenburg has tweeted that the adani group has not addressed any substantive issue the race. washington has announced sanctions on a chinese firm accused of helping the wegner group were snares in ukraine. the treasury department says they provide us imagery to the pro-kremlin paramilitaries. 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. >> thank you. still ahead, we will ask rutgers university director why she thinks new zealand's prime minister was resignation was effective leadership. this is bloomberg. ♪

conventional thinking delivers conventional results. at allspring, we break away with purpose. harnessing data-driven insights and boundless curiosity. we dissect the market from every angle. helping to build portfolios that redefine what's possible. because investing isn't one size fits all. allspring. purposefully divergent.

>> i think the main risk that exists is the economy decelerating as a result of this policy. i think they will take it up to the low fives and hold it there for a while. that medicine takes a while to work through the system. cumulative deceleration is the biggest risk. >> the blackstone president on his expectations. will onto asian stocks, investors are looking at the prospects of global earnings growth. joining us now, kathryn rooney vera from bulltick llc. let's start with this view of

the latest gdp number, the latest jobless claim numbers and what it means for the fed. stock market bulls want to shrug off anything that would suggest that you will get a more tightening the fed. what do you see? >> in an effort to say something different, i am looking specifically at real wage growth. to determine whether or not we get recession and whether or not the fed cuts this year, we need to look at the labor market, specifically real wages, do they flip positive? if they do, there is a chance the fed can land this soft landing, which historically has been elusive when you have inflation above 5% with unemployment rate below 5%. at this rate, we have it -- unemployment near 50 year lows.

i am looking at real wages and an unemployment rate which i think has to go back up to 4.905%. -- 4.9% or 5%. >> what do you think in terms of this tech rally? microsoft looking at week demand. intel looking at week demand for pcs and having to cut back, drastically reducing its outlook. what do you think is the trend here? >> i think it comes full circle. it starts with tech. tech is one of the sectors that historically underperforms in an inflationary environment. in that scenario, it does not

surprise me and i think we will see additional layoffs in the tech sector. base will permeate into other segments -- this will permeate into other segments of society. certainly this starts to take a bite on to what the fed can do and how much the fed can't go. it probably does go above 5% as you mentioned to get inflation back down to the 2% target. to do that will likely cause a recession and job losses, not just in the tech sector. if i am right, we get inflation data tomorrow, again steam and under the environment of the rollover in the labor market, the fed can start to sound slightly more dovish. the most important thing is to

realize your to date, the cyclicals are up. that is the small caps, the emergency -- emerging markets. >> what you want more international exposure at this point given that the growth is likely to come out of china? >> that is a good point. the valuations are clearly more attractive. u.s. and s&p 500 valuations i do not think are attractive at this point. internationally, i think there will be opportunities. china's reopening is going to be very important. that would keep inflationary pressures higher. i think you do have to be

diversified. i do like some international exposure. i would be wary of select emerging markets, but in general, increasing your exposure to the fixed incomes versus equities and adding duration too bad as we go through the year is my preferred portfolio position for now. >> right to have you with us. kathryn rooney vera from bulltick llc. this is bloomberg. ♪ sales tax with avalara, you don't have to worry about things like changing tax rates, exemption certificates or filing returns. avalarahhh

ahhh ahhh ahhh

>> we are continuing to see unrest on the streets of peru. protesters continuing to take to the streets. they are recalling its ambassador over comments made when it comes to the situation. we have also seen lawmakers seeking to impeach the president. this is the first such attempt as he was sworn in last month. the president called in hope for a truce after we have seen some of the most serious protesting taken place earlier this week. thousands of people on the streets and volleys of tear gas and pellets. just about two months of protests. >> bloomberg has learned that

were no and nissan are moving on with her alliance. top executives have agreed to equalize their holdings. result is expected to reduce its stake to 50% over time. it will reveal the plan in an event in london. salesforce is discussing the potential appointment of new board members. the company is in talks to bring on arnold mcdonald as the independent director. plenty more to come on daybreak asia. keep it right here. these days, our households depend on the internet more and more. families grow, houses get smarter, and our demands on the internet increase. that's why we just boosted speeds for over 20 million xfinity customers, on us. so you get more of the speed you need for day and night streaming. more speed you need when you're work from homeing.

and more speed you need as your family keeps growing. check in on your current speed through the xfinity app or upgrade to the speed that's right for you today. hi, i'm katie, i've lost 110 pounds on golo in just over a year. golo is different than other programs i had been on because i was specifically looking for something that helped with insulin resistance. i had had conversations with my physician indicating that that was probably an issue that i was facing and making it more difficult for me to sustain weight loss. golo has been more sustainable. i can fit it into family life, i can make meals that the whole family will enjoy. it just works in everyday life as a mom.

>> taken a look at consumer prices in tokyo. tokyo's cpi for the month of january. we can see the number jumped to

4.4% year-over-year. quite a good jump up from 3.9%. energy prices here in strongly to that number and fresh food as well. fresh food a 4.3% gain, beating the forecast. this is the number the bank of japan, governor looking at his final meeting of his two-term reign as governor of the boj is looking at. he has not convinced this is going to be a sustainable game in inflation because wages have to rise. if you take out fresh food and energy, 2.9%.

that is still well above the 2% target. very interesting to see how the bank of japan response. >> indonesia could be getting to signal the current round of tightening is coming to an end. 225 basis points of rates since hikes should be sufficient according to the governor. >> there was some market view you would be going to 6%, but now our assumption is it will be 5.25%. this is more certain now compared to last year.

inflation coming down. >> president marcos sons philippines will grow. you raise rates 225 basis points . are you at peak? because you said that is sufficient to bring inflation back to where you wanted to be this year. >> our determination [indiscernible] we forecast it will be below 4%. we are forecasting about 3.3% at

the end of this year. and of course the global economic slowdown. based on those assumptions, then we say 225 basis points is sufficient. meaning if there is no unforeseen conditions, then i think this is sufficient. >> so if nothing changes, this is the peak for indonesia? >> you can say that. >> let's talk about inflation.

expected to be at 3.5%. what are the risks to that projection? there are some people calling for oil to be at 110 this year. >> it is one of the biggest rates we are seeing globally, what will be the oil price? under our budget assumption, oil price 89. so basically under the budget, as long as oil prices are not sky right getting -- skyrocketing.

i am sure [indiscernible] >> you about probability. some said there is a 65% chance of a global recession happening. how much of that has been taken into your calculations? >> there may be some compensating factor of recession in europe.

[indiscernible] this will be a boost. >> that is the bank of indonesia governor. coming up, we speak to the governor of the central bank of chill lay -- chile. >> we are continuing to watch the scenes in peru, where protesters around the streets. we have seen some of the largest and violent protests this week where the nt government

protesters have taken to the streets. they are demanding the president's resignation. they want an immediate dissolution of congress. the president calling for a truce after two months of protests. we have a group of left lawmakers seeking to impeach. this is a number of escalations we have seen into the political crisis. we saw the ouster of the former president as well as a number of issues relating to the attempt to short-circuit the third impeachment proceeding of that administration and congress was of course the dissolved back in december. that political volatility continues. let's get you to vonnie quinn. >> ukraine says russia has

launched cruise missiles and drones in a new wave of attacks that killed 11 people. it comes after the u.s. and germany pledged to some battle tanks to the ukraine and for president zelenskyy asking for more advanced weaponry. the european union is looking at a cap on the prices of some russian fuels at $100 per barrel. in its unanimous approval and would apply from february 5. the imf the surgeon the bank of japan to consider boosting flexibility and long-term yield. it cites high uncertainty around inflation. the boj tweaked its yield bad in

december. ftx advisors say the crypto firm owes a long list of creditors, including goldman sachs and wells fargo. the disclosure does not reveal details, such as the size of any debts or any other exposure. 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. >> forces say gautam adani will publish a response to a report from hindenburg research calling it bogus. it is about stock manipulation and fraud. >> the latest is that we understand that the adani group

has held a call with the group of fixed-income investors. it was arranged by banks. what we have is the impressions of the people present in the meeting. we understand the adani group sent out a reply to some of the issues in an 18 page presentation which they called the myths of short-sellers. in group is pushing back on these allegations from hindenburg research. adani saying to investor's it is all bogus and devoid of facts. the big question is what comes next. we understand we will get more details later today. >> it is an indication of just

how risky it is for adani groups global expansion. >> she has sort of been under -- out of the eyes of global scrutiny. not a bit has really hurt his business expansion plans. coming into this year, he had plans to expand as far as israel into morocco. also into media, green entergy -- green energy. the spotlight has arrived and it could at worst be a repellent to anyone looking for overseas funding. >> what has been the response from hindenburg research? >> they put out a statement on twitter. they say that in the 36 hours

since they publish the report, gautam adani has not addressed a single issue that they raised. they asked 88 straightforward questions and they believe the gave the company a reason to be transparent, but so far adani has failed to do so. adani says they are exploring legal options available to it. hindenburg says it welcomes any sort of legal challenge. it is really standing by the report. it took them two years to research. >> of up next, kelly dittmar from rutgers university says why some the markets was unexpected. this is bloomberg. ♪

powerful website for free with a partner that always puts you first. godaddy. tools and support for every small business first. introducing the new sleep number climate360 smart bed. the only smart bed in the world that actively cools, warms godaddy. and effortlessly responds to both of you. our smart sleepers get 28 minutes more restful sleep per night. proven quality sleep. only from sleep number.

>> let's get to our next guest. talking about new zealand prime minister's resignation. joining us now is kelly dittmar from rutgers university.

great to have you with us. we know that politics is tough. it is tougher when you are a woman with the family. how has this set of challenges converged when it comes to jacinda ardern's resignation? >> i think she has confronted many of those challenges, obviously have been young children while being the executive leader of the country is going to be hard. often the expectations of women as they take on the bulk of those expectations and she is being held to a different standard when it comes to being a mother. that is putting pressure on her that is different from her male counterparts. she is facing scrutiny other ways, whether beer harassment or criticism online. that are distinct in their

sexism. that is from the most local levels to the top levels. somebody who has such an international profile will be subject to that. the stress that adds to women in politics is something we need to talk of when we want to keep women in power. >> it is that retention and i thought her resignation was interesting. she was constantly embodying what she says is a key characteristic of her leadership in the sense that she thinks compassion and honesty does not necessarily mean you are soft leader. she says it could be a strength. you could see her resignation as addressing that honesty within herself that she does not want to do this anymore, but she does not have it in her to continue

in this world. is that the way you read her choice to step aside? >> absolutely. what she wanted to show throughout her time in leadership is that she is fuming. her -- she is human. that is a type of humility we want to value more in leadership and will probably lead to better leadership in politics. she certainly had different motivations from the start and we saw that in her departure. she said i hope we can see that you can be kind but strong, empathetic by -- but decisive. she is disrupting our gender stereotypes about what we value

in political leadership. knowing that things that are in line with women and femininity should be things that are good and right qualities in leaders. >> let me ask you a practical question. as men and women share more childcare responsibilities, will it be necessary for more men and women to say, if i want to take on the job like this, i have to do it when i am not going to get up in the middle of the night to feed the baby. >> we might slip it to say how do we make these institutions and these roles more friendly to those who are taken out of

caregiving responsibilities. in the united states, we launched the congressional dad's caucus, for the first time having men in congress take on the role of bn caregivers of their children and talking openly about how that challenges them. and so, we should also think about how we change the institutions, not necessarily how we restrict access to those institutions for those who might not have as much time. >> another pragmatic question. a president or prime minister of a country for many people is a 24/7 job. i wonder how you view that. there are so many things a

president cannot do right now. >> if we think about the support available to all parents and could we create greater supports, i think people would say they are top leadership and they have all the support they need. but they are confronting a lot of challenges specifically for women in leadership that are unique from their male counterparts. in the case of somebody like jacinda ardern, maybe she would've felt like she had more bandwidth if she was not also dealing with the sexism and vitriol which takes emotional energy and time i. i think there are things can be done to make it friendlier.

>> and of course that is what made a satisfying seen a woman at her level walking the corners of power. if you are supporter, it has been devastating seen her take a step back. if you flip that, is it the ultimate to get back of her power that she chooses to step down now on her own terms as opposed to burning out? >> absolutely come up because i do not think she is done. yes, she stepped down in terms of being prime minister, but she has a future career in front of her.

people like her do not just leave public service completely. she will make a difference and people will know the legacy she left as prime minister as setting up of reputation to be disruptive of these spaces, to put forward a new model of leadership. and people will use her as a role model. her legacy will be ongoing. for some women who say i cannot even think of being in elected office and they see a prime minister with two young children, they may say i think i actually can do this. and maybe for a short period of time, i may need additional support. >> she does not look like she is done.

thank you so much for your thoughtful insights. kelly dittmar from rutgers university. 20 more to come on daybreak asia. -- plenty more to come on daybreak asia. this is bloomberg. ♪ today, we're producing renewable diesel that can be used in existing diesel tanks. and we're committed to increasing our renewable fuels production. because as we work toward a lower carbon future, it's only human to keep moving forward.

>> let's take a look at some of the stocks we are watching when trade opens. semiconductor shares will be in focus. intel given a much weaker forecast.

automakers in focus after toyota appointed a new ceo. we will be watching the other carmakers as well. they will be posting earnings today. also watching for fourth-quarter performance on the way. >> coming up, toyota's move to replace its ceo. keep it right here. 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

>> this is "bloomberg daybreak: asia." we are counting down to the

major market opens. waiting to see the tokyo market sent japanese markets react to the cpi markets -- numbers across the board. numbers stronger-than-expected. that has to be a focus now. haidi: huge focus when it comes to some of the sectors. will automakers see any reaction when it came to -- comes to the change of the topic. -- toyota. chip stocks after that horrible set of numbers and that outlook much better for intel. what are you seeing? >> we have a lot upon us, toyota will start trading, we have the open for japan and south korea. at the open we have the start of for cash treasuries. we did see the treasury curve rising across the board in a thursday trading. the other focus point for us today is what is happening in the yen. we can see it strengthening

after the inflation print came from tokyo in the past half-hour. the key reading is the core number at 4.3%, hotter than expected by economists. it keeps us on the watch for boj policy changes. the strength did play into the moves into the nikkei, coming online fairly flat. toyota at little bit higher at the start of trade. the big headline, the leadership changes at the very top. ceo, aki ito toyota stepping aside. that change now. we are watching the open for korea. particularly what is happening with the cosdaq today. after hours drop of about 10% they do expect to post a loss in the current quarter. that is not reflected so far the

tech heavy stocks on the kosdaq. business confidence slipping among the likes of samsung. the lowest level in more than seven years. worse than the downturn we saw during the pandemic. we have the asx 200 one hour into the session. we see more gains here were looking at the best january for aussie stocks since 1994. materials are leading the gains keeping an eye on oil. it is fairly flat on the week. traders assessing that short-term demand outlook. watching what is happening in new zealand today. we did get business confidence coming in at -52 that reading. better than -70. it reflects all the hurdles acing the local qe economy that has been hit by the rba being a front-runner during the tightening cycle. >> let's get some more analysis

on the markets. mark joins us now. what are we watching at the moment? we have mixed positive economic data out of the u.s.. we do not know what the path forward will be for the fed on the next meeting. at the same time a lot of? over tech and -- question marks over tech and automakers. >> is tough for the fed. jerome powell is giving a live press conference and people watch what he says closely. they will raise 25 basis points or 50 we will have to wait and see. the most difficult job for jerome powell is to get people to not too excited. now the idea of a soft landing is beginning to take hold after the gdp data yesterday. people to see the best of all worlds where growth is decent by not pushing inflation too hard. the fed will want to keep on

message jerome powell want to remind people he intends to keep interest rates high for a long period of time. that is not what the rocket wants to your at the moment -- market wants to hear at the moment. the equity market was to get excited. overall people want to believe the fed is coming to an end of a rate hike cycle. they will see a period ahead where the dead will want to -- fed will cut rates. he wants people used to the idea that eating inflation is a long-term problem. he has a lot -- beating inflation is a long-term problem. he has a lot of work to do. interest rates at 5.5% and will need to stay there for quite some time, maybe until 2024. it might surprise people and put a damper on the mood we see early in the year. haidi: when you look at the asian side of the equation, what do you see there? depending on if you are an

emerging market or a bigger economy like japan, the fed does not affect you so much. china reopening is a big story, not just for asia, but for the rest of the world. guest: china is what it is all about. if china can achieve growth of 5% or higher this year, that is a complete change from last year. very good for asia in general, including japan. they would benefit as much as anybody. then of course, the whole world -- europe would probably be the next area that would improve a lot. germany, their exports between china are very important. if the chinese economy is rebounding, then certainly no be a big lift across the board. everyone would benefit if the chinese economy starts to grow. the flipside is we may see an inflation in, -- commodities and other resources as well. it would be back into the global price chain. it is not a win-win for everybody.

the direction of -- taken by the chinese economy is fundamental to all. >> moving onto toyota, replacing the ceo, as competition and electric market -- he has led the company since 2009. bringing in bloomberg's on a reporter in detroit, watching everything in japan very closely. keith, with him stepping down as ceo, what will his new role be? how will it affect how the company was forward? >> he is stepping up to become chairman. he is not going way by any means. he will be there setting the long-term vision. he is 66 years old. that is around the age most toyota ceos step down and pass the baton. seito is 53 years old.

has an interesting background of running lexus. he. is in charge of branding. is involved in the racing program. that is near and dear to akio, he is a racer himself. he is a colorful leader of toyota that led them through very difficult times and doubled the price of the stock while he was running the show. haidi: what is his legacy as ceo and what challenges does the company founded by his grandfather have looking forward to the future? guest: when he took over in 2010 have to remember what the auto seen was like. general motors and chrysler were going bankrupt and we were in the middle of the great recession. toyota itself is under investigation by congress. he stepped right into the fire. he navigated toyota through

that. they remained the world's best-selling automaker. vw challenge them for a couple of years and they brought them back to sell more cars and anyone else. they have a huge market cap. the challenge is, they have not dove into the electric vehicle race in the way others have. like ford, and general motors. he has been criticized for that that he is dragging his feet. his point of view is he wants to sell all sorts of cars. internal combustion engine, hybrids, hydrogen powered. he describes it as an automotive the parent store where he has one of each. haidi: bloomberg's auto reporter keith, joining us from detroit. our other big story intel has given when the gloomiest quarterly forecast in its history. sending shares tumbling and turning back efforts. we have our senior technology

analyst. the forecasted numbers, if you dig a little bit deeper, are really quite painful. what does this mean for the multiyear turnaround? >> some of it has to do with the environment we are in. we talk about the pc market being weak. the volumes are down almost 25 to 30% and we saw that from microsoft as well. their windows client revenue was almost down 39%. it is not surprising to see that intel had a weak quarter when it came to the client side of things. where they really need to address the market share aspect is on the server-side. that is where they are losing to amd and nvidia. on the call they talked about catching up in terms of the process technology, and how they are trying to focus on that aspect.

it will take them years. that is why this is a multiyear turnaround. for now this is focusing on cost cuts. that will be the focus for the next few quarters. haidi: that is not exactly what a lot of people are expecting. that is one of the themes today. it was not about cost cutting was supposed to be about huge rebuilding and turnaround. a big gross margin best. what does that tell us? -- miss, what does that tell us? >> because it would take a long time to clear inventory. intel sellthrough channel partners. they are witnessing a weak demand for pcs. consumer spending is healthy but they're not buying pcs. they will probably see more pc demand in the second half, that inventory correction will carry through for the next two quarters. beyond that they expect an acceleration. that is why the gross margin will probably bottom and one q and focus on cost cuts to bring

that up over time. haidi: our bloomberg intelligent senior technology analyst mandeep singh breaking down the important earnings from earlier today. let's get to annabelle from movers and take a look at toyota. >> that is right kathleen, a few moments into the trade, 10 made -- 10 minutes. we see it give up a little bit of ground. these are some of the biggest suppliers into the company here. yet to be putting that into perspective. the yen strength coming into the session after the tokyo inflation reading. that hits the biggest exporters in the nikkei index. let's change, you're talking about intel, also checking in on some of the suppliers or customers of intel in this part of the world. we see a fairly downbeat session for some of the big names.

samsung one of the standouts moving to the upside. it was interesting i was saying earlier, we see consumer business confidence in korea slipping for some of the tech heavyweights. it tells us that this downturn could be quite protracted and more difficult than what we saw during covid. if we change, perhaps some of the reason samsung is moving higher, there is optimism around demand coming from china. checking in on some of the luxury stocks from asia, we had earnings where they saw a downbeat move for china where it is improving and the current quarter underway. these of the luxury names moving higher at the start of trade. checking in on energy, this is a sector focusing in on what is happening with chinese demand. some of the biggest energy names in asia, also perhaps reflecting some of the concerns we see around the economic outlook. that is leaving oil a little bit uncertain which way to look.

it will be ending the week flat. haidi: let's get the vonnie quinn with the first word headlines. vonnie: indonesia central bank is signaling the current round of tightening is coming to an end as they look to wind down. they hiked to 25 basis points since august. speaking exclusively to bloomberg he says is efficient -- sufficient and sees a lower peak rate than predicted earlier. >> back then there are some of the view that we were going up to 6%. now, our assumption for the future is 5.25%. so, 5.25%. this is less certain now. compared to last year. vonnie: can't -- companies list to -- linked to an indian

billionaire will be issuing a report. they labeled the hindenburg claim of manipulation and accounting fraud as bogus. they note that he is not addressed any substantial of issue he raised. chile central bank has cap the interest rates unchanged at the highest level in two decades. the country's for more signs that the inflation is consistently slowing. they see initial fx from the aggressive tightening cycle. the inflation rate is expected to remain above the 3% right -- target. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn, this is bloomberg. >> still ahead we will hear exclusively from bank of indonesia governor about his priorities as he ends -- near the end mr.. later this hour -- of his term.

later this hour. up ahead, how toyota's moved to replace the ceo might accelerate the ship towards electric vehicles. this is bloomberg. ♪ the first time your sales reached 100k was also the first time you hit this note...

( screams in joy) save 20% with the lowest transaction fees and keep more of what you make. with a partner that always puts you first. godaddy. tools and support for every small business first. introducing the new sleep number climate360 smart bed. the only smart bed in the world that actively cools, warms with a partner that always puts you first. and effortlessly responds to both of you. our smart sleepers get 28 minutes more restful sleep per night. proven quality sleep. only from sleep number.

>> i am deeply humbled. when i receive the details of my appointment as the new ceo,

president toyota told me to do things in my own way. with a new management team i want to fulfill this role in my own way. haidi: koji head of lexus and the next ceo of toyota. he will take the rain starting april the first let's get reaction from james. with a spring start for the new leadership, what changes do you expect? what do you think are the most primary priorities and concerns needing to be addressed? guest: i guess when it comes to -- like another global automaker they face structural changes, a once in a century change. including the electrification of cars, and the rideshare economy. on top of that there has been a

growing trend towards the software department. if you see many of their peers, like hyundai motors or general motors, or its wagon -- its wagon. most of them are talking about software defined vehicles. they are communicating this strategy reaction of sdv for their product. we think that will be the key initiative or key agenda for the incoming president. the incoming leadership for toyota in the next coming years. haidi: what do you make of the ev strategy and how much do expect that to be accelerated? we have a battery plant, but no real detailed plans in terms of when we will see local production in the u.s.. guest: it is true, toyota has

been slow in adopting evs. their strategy has been offering all the options including hybrid. the focus on hybrid has been the focus for the company. is a very profitable business for toyota. they have been building this business globally. due to that we think the ship towards a battery ev -- shift towards the battery ev has been slower. incoming management will have priority in setting target on battery ev side and localization, especially in the u.s. market. this will take some time. given the company to fix the issue with the enga. it is there models like the vg4x are based on. it will take some time.

kathline: can you be more specific on the changes they need to make on the plat arm and what the platforms is and what needs to be change in your view to make this move ahead? guest: when you look at the so-called leaders that -- two battery ev makers, the companies, with a ev dedicated platform. it gives them an advantage in terms of cost structure. on the other hand, twitter has a large focus on hybrid -- toyota has a large vocus on hybrid. it often gives inferior condition in terms of cost structure. the scale is not there and the platform itself is not fully dedicated to maximized performance of battery evs. battery performance, driving distance, and overall energy efficiency.

that need to be addressed at the toyota level. in addition to that was to the battery ev comes with the autonomous driving function. toyota has been somewhat conservative and the approach even within the japanese accompanies. -- companies. nissan and honda have features. toyota has been slow on that. these two sides that have been more driven by tesla in global markets need to be addressed. kathline: will he have any problem moving ahead when esther toyota -- mr. toyota is looking over his shoulder as chairman? guest: right. that is a challenge kojo will face come if you look at the executives or the board of directors, you will notice he is one of the second youngest

executive within toyota. in japan were señor eddie matters -- seniority matters, and think that can be a challenge. since he has confirmation of stepping down and coming out of with this implementation plan, i am sure there might be some initial difficulties, but toyota will sort it out. smoothly over the time. haidi: james, before we let you go my next question is about the bigger picture when it comes to the landscape of auto manufacturing in asia. we expect china to become the second biggest exporter in the space. how do you expect the outlook to change, particularly when it comes the supply chain, and of course he geopolitical complications that impact is industry? guest: china obviously has a large portion and they have capacity.

as we saw in the previous steel industry, they will try to export these two into emerging companies -- countries like the african market. when it comes the europe and u.s. market, we see the sentiment bearer -- bearer as well as the geopolitical issue. they block the chinese from getting into these market. with the developed markets comes with a more localization of the supply chain. we do see more of difficulty with the localization of supply chain from major automakers. they will continue to drive the capacity addition in the u.s. market and european market. the supply chain will need to be localized as well. the spending will go higher over time as you hear every day from the headline of newspapers. it will be the trend for the next couple of years. >> very big trends all at once. thank you very much.

head of mobility research at a quarry capital -- mcquarrie capital. >> you can get what you need to know in today's addition of daybreak, it is available on a block -- on mobile and the bloomberg anywhere app. you can customize your settings you only get news on industries and access your most focused on. this is bloomberg. ♪

kathleen: time for a quick check of the latest business flash headlines. salesforce is discussing the potential appointment of new board members after pressure from activist investors. they are in talks to bring on former carnival ceo arnold and mastercard cfo as independent directors.

salesforce has been working refreshing its board for several months. buzzfeed surged on news that that they plan to use open ai to create content. bringing the market value can easily -- to nearly $300 million. ai inspired content will become a part of core business this year. analysts say that can lower cost for buzzfeed. plenty more to come on "bloomberg daybreak: asia," keeper right here, this is bloomberg. ♪

- [announcer] imagine having fuller, thicker, more voluminous hair instantly. all it takes is just one session at hairclub. introducing xtrands. xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. they're personalized to match your own natural hair color and texture, so they'll blend right in for a natural, effortless look. call in the next five minutes and when you buy 500 strands,

you get 500 strands free. call right now. (upbeat music) haidi: take a look at the index coming out of australia, crossing bloomberg for the fourth quarter. the number coming out at .7%,

slowing the from that 1.9% we saw on the previous quarter. year-over-year the numbers 520%, slowing the pace of 6.4% in the -- 5.8% slowing the pace of it 6.4% in the previous quarter. slightly less of a contraction than expectations when it comes to the import price index that is a bit higher. contribute into the broader picture, when it comes to fourth-quarter cpi coming in stronger-than-expected. overall not expected to impact the reserve bank of australia in terms of potentially ending that rate hike cycle in february. we are watching the aussie dollar topping the august peak is sitting at a seven month high, the australian currency with its best week since november. let's look at what else we are watching the markets. >> picking up from ugly said about the -- picking up from

what you said about the aussie dollar, more action from the cpi print. you mentioned the moves of the aussie dollar, the asx 200 looking at the best start of the year since january 1994. broadly today we see stocks moving to the upside today. we did have that optimism from the wall street session and that is carrying through. even though there are signals we are seeing of further signs of constraint building into the economy. for instance business confidence is that is turning down in korea. inflation houten tokyo -- hot in tokyo. an indication of where the boj will move next. this has been a very strong start of the year. apac starting at a nine-month high, let's change and look at where we see most of those gains. in these charts, is very broad based vast majority of stocks so far nearly 1200 of them have

risen over the course of this year. in terms of what else they are watching when they drilled down into it further. what is losing the game -- leading the gains? there are two stories. what is happening in china and optimism amount -- around reopening. revenge consumption in travel reopening. from alibaba we have signals that the tech sector crackdown could be easing. the are -- the other part of the players is what is happening in the chips space. that has do the fed and the rate hiking cycle. kathleen: a lot of things and focus there, moving to the recent rally in chinese and taiwanese chip stocks, they may have more room to run. the global rate height cycle will peak soon, let's bring in the leader of our asia stocks team. there is optimism growing in

that guard. were used -- in that regard. where do you see it the most? >> essentially, korean and taiwanese chip shares have been doing quite well this year despite the gloomy economic outlook for the world. samsung and others have gone up at least 12%. the sense is that the stock market is pricing in a rebound in the chip sector in the second half of this year or at least later in this year. the memory chip cycle suffered most of 2022. you see is stabilize for these three names. they are the world's biggest in terms of chip manufacturing. it is looking quite optimistic right now on the stock market front, at least. kathleen: what are the biggest risks at this point to going

forward on the potential downside of this rally? guest: absolutely. if you look into the earnings season you see tencent, and it all sounding quite gloomy about the current quarter. most of them have come out talk about cap ex cuts. the market is waiting or samsung to announce cuts after the worst quarter in decades. global shipments have fallen to a record low in the december ending quarter. intel had a bad production -- projection for the current quarter overnight. the news we have is pretty terrible for the sector. market participant such as nomura says it is a good time when the data turns week to get into these shares and build up

your positions for a rebound later in the year. kathleen: bloomberg asian stocks deputy team leader. let's get to vonnie quinn who brings is the first word headlines. vonnie: ukraine says russia has launched cruise missiles, hypersonic weapons, and drones and a new wave of attacks that killed at least 11 people. the barrage came after u.s. and germany pledged to send battle tanks to ukraine. president zelenskyy calling for donations of advanced weaponry. abc news says biden is planning a trip to ukraine in february to launch -- to mark the one year since the invasion. the treasury department says, china provided satellite imagery to the program one militaries. the biden demonstration is increasingly -- administration is good increasingly concerned about the role chinese companies are playing.

the funds suggest options including the 10 year -- raising the 10 year yield target. there is exceptionally high uncertainty around inflation with a risk tilted to the upside. traders about watching closely for signs of any further change after december. ftx advisor say the collapsed crypto firm owes a long list of creditors including goldman sachs, j.p. morgan and wells fargo. thousands of entry was some kind of connection to the exchange. deutsche bank and hsbc are also on the list. the disclosure does not remediate -- reveal details of other debts or explosion -- or exposure. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. kathleen: thank you. they are said to have told the bond holders that fraud annexation thickens the company are bogus. our sources say adani executives

held a call to calm investors. they are releasing a detailed rebuttal to hindenburg allegations on friday. we bring in our equity reporter in singapore. what is going on here? it is bogus. it is not bogus. are there behind-the-scenes motivations we need to know about these accusations going back and forth? guest: yes. in his perspective, but they said in the call, this is a bogus 100 page report coming on the group. the group is excited to file a detailed response. each company will come out with some kind of response. they say the alleged accounting fraud that hindenburg talked about is devoid of facts. they have not done research properly in terms of auditing. eight out of nine of the adani group companies is audited by bd

-- i the big six auditors. apparently, as per people familiar with the matter, adani group made an 18 page presentation, to establish how the claims made by convert work incorrect. -- hindenburg were incorrect. they are expected to file the deed failed response -- detailed response later today. the problems highlighted in the report are largely known. they're not something new to emerging markets. high valuations are there, there are certain stocks in china as well that are creating -- analysts are also sing, you have to look at avanti -- adani and what happened with the cycle. there only time -- only group

spending money at the time in the private sector was not spending money. since there is no political change that has happened in india, it is hard to imagine that a short seller report marking things that are already well-known. they are risks to ems in general will change the narrative. >> you talk about ems in general. we see the same thing about evaluations and corporate governance. we see this with a lot of chinese companies as well. is that will be not -- is that what we do not see a massive dent when it comes to market valuation? guest: that is true. we have seen one day of reaction, equities. $12 billion got wiped off overall from the avanti group -- adani group stock market valuation.

when you look at stock market send bonds, they -- stock market and bonds they stabilized. today is the real test. the timing of the report came at a time when the flagship company of adani was looking do -- to do a sell. investors have come in and covered the book of their portion. today is a real test. the share sale will open up for retail investors, and other investors in general. the response to that and how much stocks smooth today will establish where the sentiment. and if the heisenberg report changed the sentiment. or if it is just an update along the way. haidi: asian equities reporter joining us out of singapore.

coming up next come the bank of indonesia governor reflecting on his five year term in the central bank, this is bloomberg. ♪

haidi: bank of indonesia governor perry is touting his

credentials as a crisis -- crisis hardened governor. they say a new law expanding the central bank's mandate similar continues what policymakers have already been doing. perry: the new law actually legalized we practiced before. we are thankful, from my eyes, legally under the new law. >> some people suggested the new mandate has propped to do to end monetary tightening earlier. is there true to that? >> this will practiced consistently, we use monetary policy or priced ability -- four price stability. >> your term ends midyear. are you open to we appointment? perry: the nomination of the governors is coming from -- this

-- he is confident. i do believe my president, our president, -- >> you are sick before years young -- 64 years young. close to retirement age. might age be an issue? >> i do not. knowledge, experience, especially during the crisis. i have gifted a lot of knowledge for the central bank. i have been living through a number of crisis including also the past three years. joining with my dear friend the minister of finance in frisco.

my job saving the country of indonesia from the crisis because of covid. will also save the country from the global turbulence is. -- turbulence. >> what will be your priorities in the coming months? perry: we already apply our policy direction. [indiscernible] the thing that we are talking about, how we can best make it through price stability. through financing. through the payment system. [indiscernible] i already also say to the public , they will direct our monetary

policy for stability. we will direct our [indiscernible] and others for economic. this is very sudden for a bank policy direction. second. we will continue, of course with the government, how best to support economic growth. help monetary and fiscal policy -- how monetary and the skull policy -- fiscal policy [indiscernible] of course, we will also support number three. down streaming of major resources. this is very important. in the past has been successful to support our economic growth.

making our [indiscernible] becoming stronger. our externals becoming stronger. this is the reform. also with the support of the government. i think the three aspects, the strength of the policy with the central bank policy coordination. central bank fiscal, central bank financial systems everyday, and of course to support the structural reform thus remaining the aspect including [indiscernible] economy. >> bank of eden asia governor -- of indonesia governor. we will speak with their decision to keep rates unchanged at a 20 year high.

you can look forward to that on friday. this is bloomberg. ♪ get refunds.com powered by innovation refunds can help your business get a payroll tax refund, even if you got ppp and it only takes eight minutes to qualify. i went on their website, uploaded everything, and i was blown away by what they could do. getrefunds.com has helped businesses get over a billion dollars and we can help your business too. qualify your business for a big refund in eight minutes. go to getrefunds.com to get started. powered by innovation refunds.

haidi: a quick check of the latest business flash headlines, intel shares fell after trading at their -- it far short of analyst element

-- estimates of 14 billion. they held and earning calls that they expect big cuts in customer inventory this quarter. elevating the head of lexus to replace the longtime ceo of toyota. he takes over on april 1, with the challenge of -- they tried to convince like of -- regulars them more time is needed to phase out combustion engines. they are moving on with the deal, they have agrees to equalize the cross shareholdings in a range of industrial products. they are reducing their stake to 15% over time. it will reveal the plan at an event to be held in london february 6. kathleen: as chinese travelers take avenge of a holiday free of strict covid curbs, they say the

see a rebound in the travel market. he is telling us more about where they see pent-up demand. >> first of all we have 10 operating peninsula hotels in gateway cities around the world. we focus on quality rather than quantity. we focus on a small number. that is enough for the see the trends. around the world. we have been north america, europe, paris, and asia. last year there was a very strong recovery in the u.s. and in paris and europe when travel resumed. that resumption has been later in asia. the opening up came later. in japan we are seeing a great resurgence since october when the research -- restrictions were lifted. we see it in china and recovery in demand in the closer markets. hong kong, japan. there is of course we know a very large pent-up demand from the chinese as well.

we expect to see that to. there is 1.i want to make. china has -- there is one point i want to make. china has become a big domestic. market when things open up in china we see a lot of domestic demand within china has well. >> hong kong and shanghai hotel ceo there. there is a travel frenzy over the spring festival holidays. despite the ongoing omicron outbreak in the country, this is propelling further bullish bets. we have had some pretty encouraging data when it comes to lunar new year holiday travels, hotels, tourist destinations. how much of this has surprised? guest: good morning, heidi. i think this is in the process of being priced into chinese

stocks right now. if you look at hong kong stocks performance from back of the holiday yesterday, we ended on a session high. the hong kong index hit the highest since march of last year. not just the holiday that has been promising. analysts continue to issue bullish calls on the sector. this week the talked about how there is still a huge runway for internet and consumer stocks within china. nomura said bullish economic data will continue to be factored into chinese shares for the next few months. haidi: where this -- what are the resistance level chinese stocks will run into? >> the index has rallied people percent since the -- 54% of the october low. we look for a sign of overheating. the relative strength of the highest since early 2021.

we are looking at the 50% retracement level that has the index running towards. i think fundamentally people are looking at the february economic data -- china does not release in january because there is lunar new year. in february people will look for validation in change in consumer habits after covid zero was suspended. >> that economic it'll be more exciting than ever. here are some stocks we are watching ahead of the markets opening. in hong kong. asia semi conductor stocks and focus after intel missed estimates by a mile or two. keep estimates on a smpte and asc technologies. shares of asian luxury good technologies -- companies may move.

watch samsonite, and others along with product. haidi: will the come the chief economist, joins us to give us their assessment when it comes to the post-covid zero consumer rebound. giving us analysis of what they see the new year holidays as well as insight into the growing chip war between china and the u.s.. that is it for "bloomberg daybreak: asia." stay with us, bloomberg markets the china open is next. this is bloomberg. ♪

i screwed up. mhm. i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too. yeah! work it girl! woo! i want to hear you say it out loud. well, i could switch us to xfinity. those smiles. that's why i do what i do. that and the paycheck. it's official, america. xfinity mobile is the fastest mobile service. and gives you unmatched savings with the best price for two lines of unlimited.

only $30 a line per month. that means you could save hundreds a year over t-mobile, at&t and verizon. the fastest mobile service and major savings? can't argue with the facts. no wonder xfinity mobile is one of the fastest growing mobile services, now with over 5 million customers and counting. get in on the savings and switch today.

david: good morni