>> you are watching daybreak: asia. >> australia has just come online. the fed lifts rates by 25 basis points. jay powell makes it clear that further hikes are coming. >> we continue to anticipate that increases are ongoing in order to have a monetary policy that is significantly restrictive -- sufficiently restrictive. >> asian stocks are set to open. some bonds that distress levels after the flagship firm polls to point $4 billion sale. shery: headlines cpi coming in

stronger than expected. the month on month number also been expectations coming in at growth of 0.8%. you take a look at core cpi year on year growth 5% has also risen. one reason the be ok when ahead with another rate hike last month. we are seeing the pent-up consumption among the key drivers for inflation. >> we have the open of the asx 200. this is the first chance for traders in australia to react to the news from the fed. more important, we got more dovish comments coming through tickly around jay powell acknowledging price pressures

are starting to ease. equities a little bit higher. the big moves more in the bond space. change now and look across the picture because we see kiwi stocks turning positive for a second straight day. nikkei futures looking to modest gains. an earlier gain on the japanese yen, that puts its year-to-date low or high inside one to 7.23. shery: we're talking about extending the gains that we saw in the regular session already. u.s. stocks reversed earlier losses after the fed slowed the pace of rate as expected but really after jay powell said the disinflation process had started. investors honing into the comments. most yields falling at least 10

basis points. you can see the downside pressure there. bring in kathleen hays. it seems that traders are honing into the fact that jay powell sounded a little bit more optimistic about the inflationary outlook. >> very important, he said that after two years when inflation didn't come down at all .21 and 2022, now it is starting to come down more quickly. he says disinflation has started. however, he said there is still a ways to go. that the policy statement opened the door to more rate hikes as well in particular, he pointed out the labor market is still very tight. the core services x housing, the super court for inflation has not really come down. that indicates that yes, they may have to do more rate hikes. at the same time and it comes to

financial conditions, he said the broader financial conditions not sufficiently restrictive policy stance yet another thing that keeps the door open to doing more. he was asked about the debt ceiling. fed chairs don't want to talk about these kind of things but here's what he would say when pushed. >> there's only one way forward. that is for congress to raise the debt ceiling so the u.s. government can pay all of its obligations when due. any deviations from that path would be highly risky. no one should assume the fed can protect the economy from the consequences of failing to act in a timely manner. >> he said the fed is the treasury's fiscal agent but this is their business and the congress business to get this done. joining us now is our guest the former president of the atlanta fed bank. was the fed chair kind of like goldilocks and the three bears? was he too cool, dovish, to

hawkish, or right in the middle? >> my take is he was right in the middle. it was a balanced measured and not in some respects noncommittal performance today. he did acknowledge the growing disinflation. that's a good thing. he said something to the effect that this is the first time i been able to say this but at the same time, he said our job is not done. the fed job is not over. suggested there would be more rate hikes and they are going to keep watching inflation very carefully. it's too early to react what they have seen so far. >> i want to bring in somebody eu know well, somebody that you know well.

he was on with us yesterday. he said the fed is going to at this meeting just get through to march. march is when they're going to update their view of the economy. that if they need to signal more rate hikes or less. did jay powell achieve that goal? he was asked a bunch of different questions were he seemed to leave it open. >> he achieve the goal of getting through this meeting without necessarily signaling or having the markets misinterpret terribly what he had to say. they are feeling their way along, they are in a new phase in many respects. the first was to get to neutral. the second is to get into restrictive territory. now they believe they are going truly meeting by meeting. they probably need more a little bit more restrictive stance of

policy. in march, we will learn a lot about when they are closer to it, how they see a stopping point, a holding time, then ultimately a pivot to easing. >> is there still a sense that the markets think the fed chair is bluffing? this is the first gain we have seen for equities on a fed day since back in july. is there a sense that the market is thinking about the fact that jay powell is keeping the optionality that he doesn't see rate cuts as a base case for this year? guest: sometimes that's difficult for me to understand the mind of the markets. it was an interesting comment he made. he said we have different jobs. the central bank is different job than people who are practitioners in the market.

i thought the discussion of financial conditions as determined by the markets was rather interesting. he didn't go very far, but he did say they are not aligned. that it would be ideal if they were aligned. then as he was making his full press conference financial conditions were easing to some extent. least some of the equity conditions were easing. the bonds were rallying as well. another is frustration they would like to have an ideal world. the markets aligned with what the fed is trying to do. there's only so much they can do about that. >> how important our financial conditions for the fed's job? guest: important i think. they have control over the overnight rate and they influence very strongly with

setting the fed funds rate. the shorter part of the curve. when you get out further, these are rates that are determined by markets. as you know, we have had an inverted yield curve for quite some time. those are the rates that are most meaningful i think the economy in the sense of car loans, mortgage borrowing, bank loans particularly term loans at banks. those the longer-term rates that matter. they are the ones who will influence the demand level the economy to some extent. >> we saw job openings get higher. the labor market is tight and jay powell certainly acknowledge that. what will the fed do if the labor market is still tight and labor -- wages haven't come down. >> they should be relatively

pleased because that is a story that sounds to me like a soft landing and good for employment. if inflation continues to come down, that's the principle focus today. they will be pleased that it doesn't require as much pain as jay powell and others may have thought in past months. as they were looking forward from an earlier point in the inflation cycle, they said this is not going to be painless. it's going to be pain to be exacted. if they have the scenario you just described, they will be pretty pleased about it. the objective is not to put people out of work. the objective is to suppress demand enough that they can get the inflation rate to declined to target and if they can pull that off without a lot of unemployment, so much the better. >> always a pleasure chatting with you.

let's get the vonnie quinn. vonnie: the flagship company has cooled its follow-on share offer. amid a selloff triggered by fraud allegations. the groups shares have lost more than $90 billion following the hindenburg report released last week. india has released a pre-election budget that cuts personal income taxes to boost consumption while ramping up infrastructure spending. it is promising to narrow the deficit in the coming fiscal year. the prime minister is aiming to win over voters ahead of the national election ahead of -- as well as agencies. kevin mccarthy says he and president biden can find common ground after their meeting in the oval office.

mccarthy says there was no agreement except to continue discussions. president biden agreed to further talks in order to avoid a catastrophic default. the u.k. has been hit by its biggest day of strikes. union members stopped work. they are seeking -- global news 24 hours a day on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. >> still ahead views about a potential recession and the continuing risks to earnings. up next, a closer look at meta after reporting improving sales. this is bloomberg. ♪

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>> asian shares are poised to rally today after the fed downplayed rate hikes. let's get a check with our next

guest. this was the first gain for equities on a fed decision day in a long time. what do you make of this? guest: back in july, that was also when the bets took off that within six months, the fed would have done all of its work and within 12 months, there would have been rate cuts from that six month peak. i was doing a chart yesterday i was surprised to be reminded of that myself. steep rate cuts priced in for the 6, 12 month time back in july. those rate cuts obviously didn't come. the fed carried out steep set of hikes and we have had painful come down for bonds and stocks in the second half of last year, part of last year's route. here they go again.

they're willing to bet that this time the fed is wrong. there is less risk this time around in that the fed at the moment signaling one or two more 25 basis point hikes then hold rates at restrictive levels until they are certain that inflation comes down. that is a less scary profile than last time when they were busy saying we're going to keep hiking. there's that at least. jay powell in amongst less hawkish commentary did stick firmly to the idea that he didn't see rate cuts in 2023 at all. i suppose part of what encouraged markets was that he also said a lot about how he thinks soft landing is possible and he even indicated some marginal openness to rate cuts by saying we are not seeing the economic outcomes that would

allow us to cut rates but he kind of didn't exclude. that has been enough to send equities in particular soaring. but also bonds, a strong rally in the bond space also. when you think about it, that's kinda contradictory. >> tell us a little bit more about that call because we are now expecting globally the upward pressure we continuously had to ease a little bit. guest: the fed and the perception of what the fed is doing means a lot for everything else. if you look around the world, a lot of economies are priced for some level of rate reductions in the six months or 12 months space. some quite space -- such as canada and new zealand. in austria, there's about 10 basis points rate cuts priced in

in the second half of the year horizon. that is feeding into the global risk act -- appetite. that speaks to the bond market concerns that the rate hikes we saw last year. that they will be risking recessions that would be the only reason they would cut rates. central banks are going to have our back now the waste -- the way they had before, the put is back on the table. therefore it's time to buy even at there are dips, by those two.

>> now we continue to watch meta's earnings call as mark zuckerberg said the years of rapid growth are likely to be over. efficiency seems to be the buzzword in his comments to investors after better than expected sales on the fourth quarter on the back of strong ad revenue. let's get more from ed ludlow in san francisco. despite the challenges, investors seem optimistic about the results. how good were they? >> efficiency is not the buzzword, it's the full on slogan. this is the year of efficiency and that's music to the ears of investors who have been upset about the expense of the transition to the metaverse. a bullish outlook as well for the first quarter in terms of sales that were above expectations. the other metric was that facebook the platform has 2 billion daily users which is

growth of 70 million from the same time one year ago. they note that meta has made changes to its products that are getting traction with user-based. again, what the investor base is cheering is cost discipline. if that carries through to thursday session, the stock will be back at levels it hasn't seen since july of last year. this is a pretty profound reaction. >> when array going to see returns from the metaverse? where we at? guest: -- ed: in one example, mark zuckerberg was asked about generative ai. his point was telling as it extends to the metaverse as well that he is equally as excited about those things, but in his words not the expense of efficiency. all told across 2023, meta cut its expectations by $5 billion.

again it's the same story we got at the end of last year, long-term their tradition -- transitioning to the metaverse. but they have slowed down in terms of what they are spending to do that and reading behind the lines, they are looking to cut out some layers of middle-management. >> review surprised that after all of those concerns, facebook did manage to continue growing their user base? ed: surprised because if you think about facebook itself, it is a 20-year-old platform. i don't use facebook anymore, i use instagram a lot. that's kind of the story of this generation of social media user. it was a surprise because of its age, but the sales side is pointing to the product changes that meta has made for facebook and it seems to be gauging -- gaining traction.

>> ed ludlow on the latest with meta. this is bloomberg. ♪

>> a quick check of the business flash headlines. samsung has unveiled its latest smartphones with the new galaxy s 23 line. the launch in san francisco was the company's first in person media event since the start of the pandemic. samsung is looking to bounce back from a woeful year.

barclays is said to be weighing a bonus increased for its income trading division. it could be as much as 15%. the bank may cut compensation from other pods including equities training and investment . nomura has signaled an end to job cuts and an eventual bounce back of the business after it reported profits that exceeded expectations. it was driven by investment management helping to cushion the blow from weaker trading. fedex is cutting global jobs by more than 10%. it is the latest cost serving step as concerns on waning demand for package delivery. the cuts will allow fedex to become more agile and efficient. shery: take a look at how stocks are trading at the moment. stocks gaining for a second

session on kiwi stocks. tech in the u.s. gaining ground. the nasdaq up 2%. most yields falling at least 10 basis points. we have the dovish message in the focus for traders on jay powell's disinflation comments. u.s. futures continue to gain ground on that. coming up next, clear bridge investments joins us to discuss what they see as continuous risks. this is bloomberg. as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts.

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vonnie: this is daybreak: asia. china is said to ease rules for

ipo's across all of its trading venues. the market regulator has proposed rolling out a new mechanism would put an end to the vetting of plant share sales giving smaller companies access to funding. the imf says australia will likely dodge recession this year. the fund points to a comp -- combination. it expects australia's economy to expand this year down from on october forecast of 1.9%. myanmar winter has extended a state of emergency taking beyond the constitutional limit. a silent strike was held to mark two years since the civilian government was overthrown. the move is seen as signaling that a general election originally planned for august will be delayed. the fed has slowed its drive to

rein in inflation. policymakers say further interest rate hikes are in store as they debate went to and their most aggressive credit tightening and 40 years. jay powell says a lot of ground has been covered but there is still a lot of work to do. >> we anticipate that ongoing increases will be appropriate in order to obtain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time. global news 24 hours a day on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. shery: we had the pressure on treasury yields today across most of the curve we saw at least 10 basis point fall.

we are seeing a similar picture in the asian session. our next guest says the first half will be choppy in markets. the director and investment strategist at clearbridge investments. great to have you with us. you say not to fight the fed especially in times of transition. the fed today seemed to be speaking out of both sides of its mouth. what are you seeing? guest: it's a tale of two halves. the fed talking about ongoing increases but jay powell was dovish when it came to his presser. he didn't directly talk about the fed hitting its target 5.25%. he said it was ok that financial conditions could ease in the short-term, it's about long-term sustained drops that are the issue and the market took that as positive. shery: especially on a day when

we already have a metric that the fed considers important about the labor market with job openings surging. what are going to see this friday and how important will not be on the collation going forward? guest: the fed can feel good about the labor market. if you look at the number of job openings, it's back to 1.9. the labor market is extreme the high right now and consensus is expecting 190,000 jobs created on this friday. think we will probably hit that and that still 1.5 times what you saw last cycle. shery: what happens when you have the earnings picture also play into the equation? guest: earnings have been negative. you're seeing margin pressure here over the fourth quarter earnings season. markets have reacted positively to that so it's more of a

sentiment trade than fundamental. as a recession comes to the forefront, and expecting earnings expectations to drop and over the last three recessions, you have seen a drop of around 66%. we are at 5.5% right now. i think that's going to pressure to drive the markets lower over the next couple of quarters. haidi: we are getting hung -- hong kong monetary authority raising the base rate. speaking of x u.s., what are you looking at in terms of international exposure this year? shery: i know you can hear my colleague, but she was asking about what about international exposure when you consider where the dollars going? guest: the dollar has seen a tremendous drop over the last couple of months completely oversold especially after today's price action. i would expect a reversal in the near term, but i think you will

see some more pressure over the next six months. as it becomes clear that the u.s. is heading into a recession, i thing the risk off properties of the dollar will reassert itself and call back some of those gains. i smith international markets to do well over the next couple of quarters. especially with the positive impulse you are seeing from the china reopening. shery: are you playing that bet especially around china? guest: i think you want to have companies with exposure directly into china, if you are looking at industrial metals that trade is a little bit rich right now considering it's going to be a chinese service reopening play rather than a manufacturing and export play given the global weakness we are anticipating. but to your spots there. one area where i see opportunity is energy with chinese demand coming back online in full force with the minutes apply responses from -- limited supply responses. shery: that takes us back to the first issue.

will that lead to more inflationary concerns and will this make the job more difficult for the fed and other global central banks? guest: it is unfortunately. with a weaker dollar that will filter into inflation, usually the fed looks through energy inflation but that wasn't necessarily the case when we were talking about this when you're ago. that's one reason why the fed keeps its foot on the economic rake as we move through 2023 especially considering the fed does not want to repeat the sins of the fomc in the 60's. i think the fed recognizes this and it's a reason to not get too optimistic that we are getting close to a pause and not outright cuts. shery: good to have you with us. haidi: as i mentioned, we did have the move from the hkma, as expected they move in tandem with the fed.

raising their benchmark rate to 5%. we saw a 25% after the fed boosted its rate by the same magnitude. saying in a statement, this moves in lockstep to the u.s. dollar. the expectations to and a lot of other hong kong lenders they are expected to make an announcement on whether they will be hiking their best lending rates as well. signaling higher borrowing costs for companies even as we consider to see realistic -- real estate impacting hong kong. we will be watching out for those big banks after the h mma followed suit. adani has scrapped its share

sales citing market volatility. it is facing further plunge in value following fraud allegations from hindenburg. what's the latest? >> the latest is the abrupt u-turn from what we have seen. we were reporting that it was fully subscribed and it had prominent backers not only in india but in the middle east. today the headline we are hearing is that adani is pulling the share sale worth $2.4 billion. we got a statement out on thursday saying this decision is in the best interest of shareholders and that's because of the current market volatility. because that adani group, they are now looking at north of $70 billion and we continue to see the selling pressure coming on the stocks after hindenburg research found the company has engaged in market manipulation and accounting fraud. analysts are saying it's not

unusual to see share sales pulled like this but it doesn't help to inspire any confidence either because when you look at the pricing of shares, that was one of the issues because adani enterprises had been offering these around 3300 repeat -- r upee,. any investor on this would have been sitting on immediate losses. adani is now saying it is working to refund proceeds received in escrow or release any blocked and bank accounts. this chart is highlighting the extreme meltdown we have seen, stocks losing 30%-50% across the group of 10 business units. shery: not surprising we are seeing being -- big moves in bonds as well. >> they were moving perhaps a

little bit better than stock prices, but that has now changed particularly for notes to adani ports and adani green energy which is now reached stress level trading below $.70 to the dollar. notes on those companies are now yielding 30% in the secondary market. compare that to the levels we see for investment grade debt of around 5%, junk debt north of a percent. there are more signs that scrutiny of adani's finances are growing. credit suisse we understand has now stopped accepting bonds of adani companies as collateral for margin loans to private clients. what we understand is it has assigned a zero lending value for notes. that basically means that clients typically have to come up with other cash forms or another form of collateral. certainly a lot for investors to wrap their with these moves.

shery: coming up next, job cuts in investment banking could be over as a japanese giant forecasts and ended to job cuts. this is bluebird. ♪ -- this is bloomberg. ♪ (♪♪) this electric feels different... because it's powered by the most potent source of energy there is ... you.

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iphone ravel -- rival. the galaxy s 23 line-up. this is the first in person media event they have held since the pandemic. was the lineup equally as compelling? guest: at the top it is quite compelling this is their first media event in the for years. -- in a few years. to answer your question, no the products did not come to match the significance of that return. i think the new as 23 phones are the least significant upgrades we have seen from samsung or any major filmmaker -- phone maker. enhancement revolve around the processor camera and a battery. the battery improvements are negligible. they are doing a lot of that on software rather than putting in bigger batteries. in the higher end version of the

phone, you are going to 200 megapixel. i think anything above a certain threshold, you aren't going to see that much more of an improvement even if you are doubling that. it's the law of diminishing returns. processor jumps are not impressive and funds look pretty much the same as the phones from 20 so we aren't seeing a lot here that is new and the timing is not great given that the market is contracting. samsung said that profits are shrinking. their profit was the lowest in eight years or so. this was not a particularly great showing given the backdrop. shery: tell us about the backdrop especially when it comes to the global smartphone market right now. guest: the economy is entering a rut depending on who you talk to despite the recent performance of the overall stock market. samsung said their profit is shrinking and one of the reasons is because fewer people are buying phones at this point.

upgrade cycles are lengthening. if we had this conversation eight years ago, i would tell you the average upgrade cycle is two years because carriers had these upgrade every two years plans. now the funds are not subsidized, they cost a full price, they're going for north of $1000 in many cases. people are trying to hold onto their money right now. it's a combination of factors that is leading to fewer phone sales and slower year-over-year growth or annual declines as we will probably see in the case of apple thursday in the u.s.. shery: let's turn to banking. nomura signaling an end to job cuts and an eventual bounceback of the business after reporting profit that exceeded expectations. for more, let's bring in our

guest russell ward. guest: the results are quite mixed despite the profit. we had one of the segments investment management reporting profit growth. probably not surprised that dealmaking was quite sluggish given the slowdown globally. nomura saw a big drop in revenue or a slight drop in revenue i should say in fixed income which is a surprise given the strength in that area and volatility in global blonde markets -- bond markets. the cfo did strike an optimistic tone. he said the deal's pipeline is picking up. he also said the bank is probably going to that if it from volatility in bond trading.

as you mentioned earlier, regarding job cuts he said that the bank is done with those which is surprising given the pessimistic tone we had on wall street this earnings season with banks across the board signaling aggressive cost cuts. quite an optimistic tone, possibly the worst is over for nomura the season. a lot of uncertainty to come and we will have to see how investors interpret when shares open at the top of the hour. haidi: we are also getting other reporting results later today. do we expect positive progress? guest: we have mitsubishi -- two of three megabanks. one is reported to report a charge related to the sale of its bank.

but results are expected to be quite positive that both banks will make positive targets -- positive progress toward targets but not enough to raise the targets. one arrival earlier this week posted solid earnings. almost reached its profit goal with one quarter to spare. the outlook is improving slightly. we have the global economy picking up slightly. china's reopening. it seems to be heading for a soft landing. inflation is slowing there and with the fed is slowing rate increases, that will help the megabanks foreign bond books which are been taking paper losses in recent quarters. the outlook is picking up, but we will have to see what happens this afternoon when they report. haidi: a bit of a preview of

some of the big financials reporting in japan. tune into bloomberg radio. you can hear from the days big newsmakers and at the analysis from the daybreak team. you can listen by the app or bloomberg.com. this is bloomberg. ♪ lomita feed is 101 years old this year and counting. i'm bill lockwood, current caretaker and owner. when covid hit, we had some challenges

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>> palantir ceo says the company strategy to reach new business clients is working especially in the u.s.. he spoke with ed ludlow in this exclusive interview. >> we are a company at his most important purpose is to power the west to even higher heights in the commercial and government context. we have done this in anti-terror, pandemic, data protection. you can't do that if you are also going to transfer those technologies indirectly or directly to your adversaries and we've never done it. ed: you were talking onstage about how you are a public company and you have a responsibility to your shareholders and at times shareholders have complained to you on wire you doing this, it's lossmaking or why are you not doing that? you talk about your strategy, investors have not really cheered it.

what is your message today about the deals you are announcing? guest: we are a company that has a primary mission. it is to make the west stronger and better. that mission has secondarily led to 61% and the share price is a red herring because all tech is down, our shares have not been any more punished than anyone else's. if you are an investor and you want to go long on transforming our country and our allies, you have a home at palantir. i have never ever wavered from that statement. if you don't want to invest in us because of that, you should not. if you want to invest thinking i'm going to change, you're making a mistake. we are laying our cards on the table. there is nothing but transparency here. when went to the ukraine, i didn't ask them can you pass? i said here's the product.

when we started off in america on the pandemic and in britain, we said we can help. this is the primary mission of our company. where i am aligned with investors is they are hearing the truth. i'm not saying we might change this policy, we might do crazy deals and adversarial countries, we might put other missions ahead -- now, i tell the most important investors that every year -- every day. palantirians. you know what you buy when you buy palantir. ed: you yourself have sold stock rigor late since the expiry in 2021. guest: in the fairness of transparency in the last year or so, i have only sold for tax reasons. there have been no financial sales. ed: i'm grateful to be here with you in palo alto. i'm surprised to be here with

you. you talked about culture in silicon valley. he moved the company to colorado and you have not come back often in the last three years. guest: silicon valley has obviously failed in its mission to provide acknowledging that is useful for the world that makes it a better place. we were i think the first reasonably large company to leave and now i am happy to come back and say on occasion, our position is a position we are proud of and be surrounded by people who disagree with me. ed: there are many woke engineers who lost their jobs recently at some tech giants. i know you are looking at growth. you looking to hire those engineers? guest: do not join palantir if you aren't willing to support the u.s. military and its allies. you can have any political opinion you want as long as that's not a question for you. as long as it's a question for you, palantir is not your home. shery: these are some of the

stocks we will be watching when trade opens in japan and korea. financials in focus. one signaling brighter days ahead. more on earnings, the other big names to keep an eye on. sony, panasonic among others reporting results. the market opens in seoul and tokyo are next. this is bloomberg. ♪

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>> this is "bloomberg daybreak:

asia." it could be a positive day for equities. we saw upside in the wall street session already after what was perceived to be a more dovish fed. we had a little bit of discrepancy from the statement on keeping rates high, but at the same time chair powell talking about the disinflation measures already starting to be felt. >> maybe it's what he didn't say that the markets have chosen to interpret us dovish but it's a positive side of -- it is a positive set up. positive numbers out of meta, potentially lifting asian tech. what are you watching? >> we have the open now of japan and korea and the start of trading. let's talk to the moves on wall street. a very strong sentiment coming back in and a pullback that we had in treasury yields as well, so the 10 year yield coming

online like this. in terms of the market reaction so far and japan, we are seeing the nikkei 225 coming online a little bit higher. we have to keep an eye on what's happening with the yen as well because it did gain as much as 1.1% against the greenback. that could pressure japanese exporters of slightly in the session today. we also have the japanese big banks coming out with their earnings. mora signaled -- nomura signaled an end to job cuts and a bounceback of the businesses. you can see the stock coming online about port point percent -- about .4% to the upside. >> we do have the opening of korea as well in is not just about the fed today, we also have local pressures at play including the inflation data we got. essentially we saw the pace of inflation quickening over the course of january coming in at 5.2%, up from 5% in december.

also that core cpi reading coming in pretty hot as well. that does indicate. the price pressures to remain strong. it does also may be put a little bit more pressure on the bok to stick with its tightening cycle even though it could have been one of the first and asia to en d its cycle. we do see korean tech stocks leading the gains in the session so far at the start of trade. unsurprising given the most we had in the nasdaq overnight climbing more than 2%. you can see futures also indicating more than 1% at the open pyramid in australia, changing on now, we see i.t. stocks leading the gains in the asx 200 one hour into the session. other rate sensitive sectors, also gaining, like consumer discretionary's. oil, interesting moves this morning. we saw it pulling back on the session, concerns around inventory growth over and the u.s. but it does seem like investors in oil are looking more closely

at powell and what he had to say about the pace of rate hikes ahead. >> let's dive into that. chair powell, saying the fed will have to deliver a couple more rate hikes, even as the central bank slows the pace of tightening and acknowledged a definitive pullback in inflation. our policy editor kathleen hays is here. what are the key statements here? it seems like the press conference and the statement itself, there was a little bit of a discrepancy on how markets took the tone. >> let's cut to the chase here. jay powell said, finally, disinflation has begun. inflation was stuck high in 2021-2022. they did four 75 basis point rate hikes in a row and now they are seeing a coming down, but the fed and its official statement said more rate increases will be warranted. jay powell in the press conference also said he sees a couple more rate hikes this year. basically policy needs

to get more restrictive. here's what he said. >> we continue to anticipate that ongoing increases will be appropriate, in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time. >> there was a lot of uncertainty around what he was saying about financial conditions. have the eased? is that a problem? -- they he is? is not a problem? he said over the long-term, they are tight, but later he said they are not tight and that was -- but he didn't make it a big issue. that's one of the things that throw people off a bit. he talked about disinflation started and set more rate hikes are needed. but message the markets and investors need to take away, they are not done, there more work to do. >> going into the rest of the

week, the ecb on the boe as well, we are expecting more hikes? >> absolutely. and because of the european central bank, the head of a somewhat more easy year with 8.9% year-over-year, 8.5 versus an expected 8.9. that is improvement. but however that is still very high and the core rate is around 5.2, their target is just under 2%, they've got a long way to go. overall another 125-50 basis points -- another 25 basis points to 50 basis points. some are talking the possibility of a 25 basis points hike. they have a long way to go. there is some sense that maybe because they've got these tailwinds that they could slow down a bit. but more rate hikes one way or the other, inflation still over 10% in the u.k. >> lumber's policy editor -- bloomberg's policy editor,

kathleen h - kathleen hays there. if you take a look at the exuberance the equity markets ran with with the fed communication overnight, do you think it is an accurate assessment of where to trajectory -- of where trajectory goes from here and we are you finding opportunities in this market right now? >> good morning. great question. i think the focus of the market, how much of that is when the fed policy is starting to come a lot and the question, whether any r ord -- any words we get from powell make an impact on the market or not, looking at what inflation has been doing, it's obviously coming down. more so since the start of the year. how growth is faring, the soft landing narrative is picking up.

the recession was starting to be priced in at the end of last year. i think both of those are kind of sending positive signals in a very broad sense, but there is volatility, so i think the market is a lot more sensitive to data now than what it is to powell and in terms of opportunities, i think the market is going in the right direction right now but i would be more careful about the risks ahead. because even though chair powell highlighted the disinflationary pressures that are there, we are potentially looking at inflation really being a monster and especially with the chinese reopening and europe starting a recession, could we see some kind of a double top and inflation into the second half of this year? it is about the risks going forward from here. >> what are you avoiding if you are looking at those risks? where you find opportunities

that are more risk proof? like when you look at inflationary pressures globally? >> i think it is about keeping a balanced portfolio. we are looking at keeping portfolios inflation proof. that does mean adding some amount of bonds and gold to it as well, because it does look like gold can certainly be one of the outperformer's this year. at the same time, i think it is probably a good idea to look outside the u.s. equities. there are a lot of potential opportunities in asia, which has obviously fared a little bit better in this tightening cycle compared to historical trends. but this year especially, it looks like a lot of tailwinds are lining up for markets. >> you mentioned gold. what a broadwater commodities? especially oil. -- what about broader commodities? especially oil. >> we are looking a metals

being the outperformer in the commodity space. china's reopening and a transformation trend that will continue to pick up. the terms of the energy market, i think overall it does appear like we can be in a sustained uptrend because of the structured shortages of supply. i would say all markets are rather choppy because there's just way too much inflammation to digest for old traders -- too much information to digest for oil traders. supply is limited by the russian sanctions as well. overall that is going to heightened oil prices in the short term as well. but technical traders are in control of the oil markets right now. the $90 barrier is looking really tough to overcome. >> in today's session, we are seeing great sensitive tech stocks gaining ground across asia as well.

we already saw the nasdaq rallying more than 2%. where do these stocks go from here? especially in asia, where you also have semi conductors pressure. >> in the short-term, it looks quite optimistic right now, because we've had positive earnings from meta, then the fed policy being interpreted as dovish by the market. going from here, we have those big tech earnings due today from apple, amazon, and alphabet. that will really be giving us a better signal of how the tech industry is doing. overall, we continue to see a lot of wage pressures in the tech sector. at least in the u.s. so i think we've seen massive layoffs but that does not mean that the wage pressures are going to ease off as quickly as that. i think that continues to question the kinds of margins

these companies can present at to date. -- can present to date. that can translate into asian tech stocks as well. >> let's get to vonnie quinn with the first word headlines. >> is so, triggered by fraud allegations. even though it was fully subscribed. thanks to indian and the gulf investors. a los more than $90 billion in by the following that hindenburg report released last week. india has unveiled a $550 billion pre-election budget that cuts personal income taxes to boost consumption while ramping up infrastructure spending. the prime minister is aiming to win over voters ahead of the national election next year.

china is set to ease rules for initial public offerings across all of its trading venues. the market regulator proposed rolling out a registration based listing mechanism that would put an end to the planning sales giving companies access to funding in the nation's equity market. the u.k. has been hit by its biggest of strikes and more than a decade. as many as 475,000 union members stopped work, closing or disrupting schools and crippling the nation's rail network. they are seeking pay rises to offset the cost of living crisis. and its pressure to make more general offers -- generous offers to civil servants. 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'm vonnie quinn. this is bloomberg. ♪ haidi? >> still ahead -- trip.com's managing director joins us to pinpoint the windows of opportunity emerging from china stores and rebound. up next, we look into mark

zuckerberg's own assessment of the rapid growth that meta, likely to be over. this is bloomberg. ♪

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ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh >> as we digest the outlook event from meta, let's take a look at whether we are seeing much of an impact when it comes

to the big tech names in the asian session. >> we certainly are, when you take a look at the movers so far, 15 minutes into the session for japan and korea, it is tech stocks that are leading the advance in asia. is not just about meta, but also the reaction we had on wall street overnight to the decision from the fed. essentially jay powell indicating that we are starting to see price pressures easing. not pushing back as much as expected on the loosening of financial conditions. we are seeing these big tech names gaining and asia. you did mention but of course playing into this. if you change on now, take a look at the social media stocks in particular. we did see the facebook parent post and quarterly sales that talked estimates -- that topped estimates. it still has room to grow for its biggest flagship business like instagram and facebook. for some of those social media stocks in asia at play. >> mark zuckerberg actually talked about the company entering a phase change, focused on efficiency.

sarah frier leads are new steam in san francisco, what does that mean? >> he said he is actually going to cut projects more quickly when he realizes they are not achieving results, he is going to/layers of middle-management -- to slash layers of middle-management and improve the way that engineers make decisions using artificial intelligence. he wants an organization that can make decisions faster and he thinks this will lead to better products and increased profits for the company. >> so, there were improvements when it comes to advertising as well as users, was this quite surprising? >> i think it it was -- that it was a particularly difficult year for social media companies that relied on digital advertising last year. any sort of improvement was welcome. it was really what people were hoping for. it -- if it had been about a quarter for meta, they would've had to

do something quite drastic. i think zuckerberg, we saw a change in tone, really, he has spent the last year talking to investors about how they have so much to look forward to in a decade or so with the metaverse. and that's not what investors want to hear, when the economy is bad. i think the tone that he took on this call where he was promising efficiency and where he was promising good decision-making and just a lot of streamlining of how the company works, that is what investors wanted to hear, and that 40 billion dollars buyback certainly didn't hurt. >> what does it say about the broader social media realm right now? >> i think we heard yesterday from the snap ceo, evan spiegel, he feels like although he has not really quite seen a turnaround and digital advertising spend, he is seeing it not get worse. i think that aligns with what we heard today for meta. it's been a painful period, but

we may see some recovery or at least some more predictability this year from these companies. >> sarah frier there, who leads our technology coverage in san francisco. coming up next -- the former atlanta fed president tells us what he thinks the fed's made a balanced and measured decision, slowing the pace of hikes. we get more on jay powell's comments, head. this is bloomberg. ♪

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that ongoing increases will be appropriate, in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time. i would say that our focus is not on short-term moves, but on sustained changes to broader financial conditions. we are trying to make a fine judgment about how much is restrictive enough, given our outlook, i don't see us cutting rates this year. if we do see inflation coming down much more quickly, that will play into our policy course. there is only one way forward here, and that is for congress to raise the debt ceiling. no one should assume that the fed can protect the economy from the consequences of failing to act in a timely manner. we are very premature to declare victory or think that we've really got this. the job is not fully done. there's work left to do. >> the former atlanta fed president, dennis lockhart, says chair powell gave a well calibrated statement on what the fed plans to do next. now, this of course as he

starts getting ahead of inflation. he spoke to us earlier on "daybreak: asia." >> my take on it is, he was right in the middle. it was a balanced, measured, and in some respects, noncommittal performance today. he certainly did acknowledge the growing disinflation. that is a very good thing, and that is new. he said something to the effect of, this is the first time i've been able to say this, but at the same time, he said, "our job is not done," that the fed's job is not over, and suggested there will be more rate hikes and he is going to keep watching inflation very carefully. it is too early to react to what they have seen so far. >> what happens if inflation does continue to come down, but the labor market is still very tight and wages have not come down? what will the fed do then, what should they do? >> i think they should be

relatively pleased, because that is a storyline that sounds to me like a soft landing and good for employment. if inflation continues to come down, that is the principal focus today. they will be pleased that it does not require as much pain as i will and others may have thought in past months. that as they were looking forward from an earlier point in the inflation cycle, they said, this is not going to be painless, this is going to be pain to be exacted here. if they have the scenario that you just described, i think there will be pretty pleased about it. the objective is not to put people out of work. the objective is simply to suppress demand enough that they can get the inflation rate to climb to the target, and if they can pull that off without a lot of unemployment, so much the better. >> the former atlanta fed

president, dennis lockhart. here are futures at the moment, we had an optimistic handover from wall street overnight and a pretty good start when it comes to trading here in asia, as well. this is the picture across you will be in futures -- across european futures. we kia cadenza the -- as we can't get onto the boe decision. we have the msci europe just a little softer. german dax futures looking robust as well. the previous session had been pretty muted going into the beginning of a slew of central-bank decisions as well as a busy earnings season. >> here's a quick check of the latest business flash headlines. samsung has unveiled the latest android smartphones with its new galaxy s23 line going head-to-head with apple's iphone 14. the launch and san francisco was the first in-person media event

for the company since the start of the pandemic. samsung is looking to bounce back from a challenging year for smartphone makers, which culminated with the worst quarterly sales decline on record. fedex is cutting global officer jobs by more than 10%. it is the courier's latest up as economic concerns and waning e-commerce way on demand for package delivery. in a memo to employees, the ceo says the cuts will allow fedex to become more agile and efficient. bloomberg has learned the boards of nissan and renault will reshape thereto darkened alliance before -- reshape their two decade alliance, agreeing to the proposal shortly before next monday's media briefing. they will cut the steak and nissan while the japanese automaker will invest in renault's ev business. barclays is set to be weighing a bonus increase for its fixed

income trading division. sources say the overall boost could be as much as 15%. meanwhile the bank may cut the composition for other divisions including equities trading and investment banking amid declines in derivatives and dealmaking activity. >> this is the picture across asian equities, as we digest the fed decision. we have seen hong kong's monetary authority moving in tandem with their rate move as well. also around the region, we are seeing the first half hour of trading out of japan and korea, the nikkei 225, with pretty modest gains, the kospi, with gains of over 1%. a lot of the tech names are being lifted by the optimistic numbers out of meta, as well as the broader outlook when it comes to the path forward as well. here in sydney, gains of about half a percent, watching some of these energy names in particular. gains in oil, expected

to be lifting. still, despite asian risk assets being lifted by the powell rally we saw overnight in the u.s., both in equities and bonds after that 25 basis point move, we are seeing a little bit of risk caution if you will, given that we are going into the rest of the week with both the ecb and the bank of england decisions. coming up next -- he loses billions of dollars in wealth as investors punish as companies, as well as fraud allegations against the empire. we have the latest ahead. this is bloomberg. ♪

haidi: some data just coming

through from the trillion economy. -- australian economy. that blows expectations of 1% out of the water and just reversing the contraction of 9% that we saw in the previous month. this might suggest that we are seeing evidence that home prices potentially are starting to stabilize. we are seeing that confidence back. home prices, even the latest data this week have seen further declines, particularly across major cities like sydney. the national index dropping almost 9% in april 2022. very interesting that building approvals jumped 18 point 5%, much better than expectations. we are also getting the business confidence for the fourth quarter as well. that has seen a contraction of one, from a prior gain of nine. this, as we sell retail sales for australia posting the first decline of 2022 for december, as

we saw that consumer sentiment side of things. that started to be impacted by rising rates as well as inflationary cost. this coming as they say they still see a soft landing for the australian economy. shery: some signals or signs of resilience, but today in markets, we are focused on the fed meeting, specifically what we what we got from the press conference. pushing back a little more than expected on the loosening. in terms of market reaction, we are focused on what is happening in the equities picture. we are seeing a picture of green here across the screen. not just about the fed, we do have those earnings coming out from meta, signaling some resilience. it still does the growth for the likes of instagram and facebook. that is another positive factor,

i.t. stocks are among the big gainers today. we saw the nasdaq rising to percent. the dollar weakness was another big factor contributing to this. we did see that drop after the fed meeting. you can see the likes of that advancing nearly 1%. also that pullback we are seeing in yields, reflecting what we had in treasuries. what is interesting, we are seeing that drop for copper. it does suggest that the china reopening rebound is starting to fade a little bit. haidi: sticking with china, here is some breaking news when it comes to potentially some action in the banking sector. credit suisse is reportedly weighing letting its china team and what is seen as the first [indiscernible]. they are weighing a plan to carve up the investment bank in china and shifting the overseas operation.

this is according to bloomberg reporting. the securities and wealth business in mainland china is likely to be kept under the swiss lender while hong kong are focusing on offshore deals that would be transferred to credit suisse. according to people speaking who asked not to be identified. this would essentially reduce the restarting license -- license application. they are awaiting final approval after almost three years after they gained a majority control with a local firm. this comes as we have seen credit suisse making deep cuts to the china workforce back in november. part of its global overhaul. it let go of at least one third of investment bankers. and at least 40% of research staff. more details as it comes to us. vonnie: u.s. house speaker kevin mccarthy says he and president biden can find common ground on the debt limit, after the

meeting in the oval office. mccarthy says there was no agreement except to continue discussions. the white house says president biden also agreed to further talks to avoid a default. the ims says australia will likely dodge a recession this year even as it economic growth is set to more than half. they point to a combination of rising interest rates and a weakening global expansion. innospec's -- expects us trillions economy to be 1.6% next year. myanmar's has extended a state of emergency by another six months, taking it beyond the constitutional limit. the announcement comes as conflict continues across the country and a silent strike was held to mark two years as the civilian government was overthrown. the move was seen as ignoring -- second signaling the election will be delayed. 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.

shery: adani bonds have plunged to distress levels from fraud allegations against a group. let's get the latest. the crisis of confidence continues, we have seen a little more resilient, but it seems not any longer. >> it is worsening day by day. we saw a wipe in adani enterprises, all night, the company has pulled off its share sale. it is becoming a crisis of confidence, not just for them but for india as a whole. our reporting is that the sentiment is turning for the worst. there are people who are now looking to probably shift allocations a little bit more, probably rethink the investment piece on india being the hottest investment area.

and look at other emerging markets. if you look at the market cap, wipeout is huge. after that is when [indiscernible]. higher odds of falling again today. the bonds are also training in the u.s.. it is becoming a process of pain, there have been [indiscernible] being made to other emerging market accidents of this nature. the key thing is this is actually putting india under the government's lens. just like banks move to dump some of these stocks, almost all indian assets would be look to that now. there might be a lot more pain before india can put this behind them. shery: it is interesting, you

talk about other incidences that are like this. if you look, same kind of themes, concerns about governance, and valuations. nothing really happened when it comes to the market impact. why are we seeing that play out differently here with adani? what do you see as being the emerging-market contagion? >> e comparisons can be drawn to a lot of chinese companies. in their case, probably governance was not as big of an issue as it has been for adani right now in the aftermath of hindenburg research. you need to keep this in mind that even china's property sector has also undergone such a big pain, a lot of market cap got wiped out. similar sort of thing is panning out in india as well. msci india is actually

underperforming. it just establishes that it is not just a pain point for india or adani, because india commands the second-biggest [indiscernible], then it becomes for them as well. it is a globalized world now. indian assets are [indiscernible]. you need to look beyond that landscape as well. remember this. over the last few years, adani, the majority of funding has come from foreign sources. now we broke the news yesterday that credit suisse is essentially not assigning any value to adani's use. that is a turn. you have one person saying that, you have many other banks bubbly

doing similar, what that does is not just evaporates funding but it creates a liquidity crisis. but for all india. [indiscernible] travel from india to new york, and indian assets are getting priced and are expected to probably consolidate by the end of this year, at best. what we are getting from the reporting is that probably for this year, india might be in for more pain. haidi: bloomberg asia equities reporter with the latest on adani. the president remains silent as he has alleged ties to [indiscernible]. comes just as the 2024 federal budget was being announced. let's bring out malcolm scott.

we did see that the heckling of adani coming from the opposition bench is actually interrupted. the actual budget itself, how are you characterizing this? is this big spending? malcolm: it looks like a pretty good budget. there is also some physical consolidation. we have got a growth positive budget, tax cuts, big 33 percent ramp up in infrastructure spending plans. there is plenty of micro measures that seem to have got the tip from economist. at the same time, there is some tax tweaks, even though there is some income tax cuts, there will also be less rebates. that works out kind of neutral. there is actually some physical consolidation on the cards as well. the deficit will be slimmer than it was last financial year. that comes in at about five point 9% of gdp compared to

6.4%. it is a real shame for the finance minister, pretty good budget from one economist have been saying. it has been overshadowed by the adani woes. haidi: there were lots of concerns with india heading into elections that fiscal responsibility was flying out the window you are telling us is that this actually looks sound on the fiscal side of things? malcolm: that seems to be the case. it is based on's optimistic forecast. gdp is expected to grow 6.5%. that is more optimistic than the imf. there is a pretty optimistic asset sale program of about $6 billion worth of assets. we know they haven't really materialized in past years, those targets have been hard to meet. that tarnishes demand for indian assets. that might be hard to achieve.

also banks are seeing some big reductions to some of the subsidies that have been a strain. any reversal in some of the price decreases we have seen for things like foodstuff and fertilizers that could be another strain on the budget. there is some fairly optimistic assumptions that make this a fiscal contractionary budget. if all of that comes off, it seems to be a budget that does both. it is pro both without being too much to spook on markets. while still getting the ticket and seal of approval from ratings agencies. haidi: thank you, malcolm. trip.com tells us about the opportunities emerging from china's tourism rebound in southeast asia, this is bloomberg. ♪

shery: with china easing is covid measures, tourism has made a strong comeback. trip.com chinese language platform says the mastic and outbound travel bookings in china reached a three year high with overall travel bookings up by over 600% on the year. the managing director and vice

president is with us. good to have you with us. where are you seeing the most strength when it comes to travel demand across china? boon san chai:. we are actually seeing and over the chinese new year period. mainly several countries in southeast asia, including singapore and thailand are the main destinations. forex growth, and also for bookings, more than 30 times increasing bookings year on year. it has gone above 70%. very high demand and also very exciting news for us. shery: does that mean that this trend can continue? or how long will this last? boon san chai: i think the chinese demand is just starting to pick up. as we know, over the last couple of years, we have a very high

pent up demand. we have seen huge spikes outside of china. i think the general opening on the chinese border, we are also starting to see domestic travels back to what it was in 2019. outbound demand from china to the rest of the world will pick up. just to give everybody some perspective, in 2019, the chinese people made of [indiscernible], i think that could pick up as our discussions for global partners to bring [indiscernible] internationally across to the rest of the world, you will continue to see travel pickup. haidi: the recovery be muted by some of these factors that we see, around the world? where we have very expensive airfares, very busy season when it comes to travel, as well as a

slowing economy in china and the fact that things like the domestic property market isn't doing well, do you see that strong demand that people will want to spend? boon san chai: i think that initially, it will come from business travelers. i think business will definitely come first. i think the capacities has to pick up. we are looking very closely at the allied partners in mainland china. we are also starting to see in the second and third order they are starting to increase capacity and power and use of technology of robotics to help regional work. we will also start to see leisure travelers starting to pick up. the other trend that we have seeing, doing a lot of online meetings, also mixing business with leisure. even though you might not travel 100% for leisure itself, they may incorporate some of their leisure travels into the business meetings. typically, they might go to a destination for business, but might extend

it for over the weekend or a few more days just to ask or the city. that is how they take advantage of business travel to include some of the leisure travel as well. haidi: this lunar new year was the first time in many years that a lot of people were able to freely travel without restrictions. we saw a lot of domestic travel. when it comes to international trips, what do you think has changed over the past three years might change the types of travel consumption trends that we see out of chinese travelers? boon san chai: we call it the for us. the first us is safety. with covid and people more uncertain about avirulent's, one thing that travelers are looking for is safety in terms of making sure when they travel they are safe. now, they are making the decisions a lot more last minute.

we would advise the hotel partners to be very dynamic in terms of how they manage their pricing. it is that customers may not make the booking so early, the third one is mac. they are traveling in much smaller groups. last but not least, we are happy to see sustainability. many of the younger generation customers are looking at incorporating sustainability as part of their travel options. in our research, we are seeing 75% of travelers prefer more sustainable options. 60% of our customers when they make bookings picked a sustainable option over the nonsustainable one. i think that is one of the key trends we are seeing. the other one is mixing blues -- business with pleasure.

longer lengths of stay because -- adding additional number of days in their business travels. haidi: great to have you with us, managing director and vice president trip.com group. we do have more to come. this is bloomberg. ♪ don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh

haidi: a quick check of the

latest business flash. measure shares word after first quarter revenue could reached dollars. that is higher than forecast. it also shows fourth-quarter sales beating expectations thanks to growth in urns. they want to help the stock recover from the worst year ever. an end to job cuts in investment banking and an eventual ounce back of the business. endless expectations, the bottom line beef was driven by mismanagement helping to cushion the blow from weaker trading. the retail business also showed signs of improvement. credit suisse is said to be weighing a plan to carve up its investment bank in china. they may retain a domestic unit and shift the overseas operations to the first boston division. we are told the securities and wealth businesses in the mainland are likely to remain under the swiss lender while hong kong staff are focusing on offshore deals. shery: china's market regulator

has issued a draft proposal to ease rules for ipos across all its trading venues. asian equities reporter joins us more. tell us about the reform proposal and how investors are reacting. >> this proposal has got investors very excited. but basically helps make it easier to firms to [indiscernible] massive exchanges. in as well as makes the pricing practices more [indiscernible]. this has been -- investors have been waiting for this for a long time. they feel like this could be a key milestone for chinese markets to become more connected with international markets, as well as attractive for investors. we can see some actions in brokerages shares.

i.t. services, as well as fintech. this is seeing that it could help increase the ipo deals for domestic brokerages as well as give some sentiment boost to on ensuring -- on shoring. haidi: when it comes to some of the hedge funds that beat the volatility in 2022, they are actually looking to china. what is the thinking and the trades they think will work out? charlotte: some of those asian hedge funds have been outperforming market. they have done it by placing positions earlier on china's reopening. they are still very bullish about the reopen. we have seen this big [indiscernible] by the reopening process. some of the things they're looking at is traveling from chinese tourists, particularly to other nations.

this could potentially benefit a global currency. they also still are in some of the positions of low equities. they are still looking at hospitality, travel, luxury stocks. haidi: thank you, charlotte. that is just about it for daybreak asia. we will look ahead to the start of training. stay with us for "bloomberg markets: china open" this is bloomberg. bloomberg. ♪

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