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daybreak: asia" coming to live from new york, sydney, and hong kong. haidi: counting down to the market opens in tokyo and seoul. the top stories is our, amazon, alphabet, and apple sliding in late rate to lessons on the results. sales miss across the board. it does after hours earnings putting a damper on investors' postevent euphoria. the fed and easy be delivering .5 of 1% rate hikes as expected. the adani crisis deepens with one of the biggest stock routes in india possibly is history. jp morgan seeing value in some of its debt. shery: big tech earnings after hours and setting the tone in u.s. futures at the moment, we are seeing downside pressure after three sessions of gains in the new york session. very close to full market territory from december lows, but that is not lasting throughout the after our session, given that we have

amazon, alphabet, apple with a mixed results but are basically disappointing investors, and we are seeing market sentiment being dampened, even qualcomm it disappointing with their sales work as. in new york trading, wti under pressure, right now link steady very close to the 76 u.s. dollar level per barrel, this after we had wti pressure, given that the growth rate was researching and we had traders put that money into rate sensitive stocks, but right now that trade not continuing, and we continue to watch a treasury markets as well as the global rally continue here in new york. annabelle: that is right, kicking off with what you were saying about tech earnings, because it certainly dampening sentiment here. opening of the asx 200 coming online lower today. the big focus will be how tech stocks perform, we did see them closing at 84 month high in the prior session. this morning we are watching them come online, nine minutes until the start of trading. we are seeing the retreat still in bond yields again, a lot of

repricing going on around expectations for central bank moves, where we go from here. central banks also in focus in the prior session with the doj, essentially japanese yen rising as much as .3 of 1%. we did hear from boj officials saying expect no changes in policy before governor kuroda steps down. nikkei futures .28 weaker start in chicago. looking a little more range abound but were factors in play including what happens in the chinese session today. golden dragon index also lower in the u.s. session, and a profit taking perhaps going on on the session on thursday. haidi: let's get more on tech earnings, i went to bring in ed ludlow in san francisco. su keenan joins a set of new york. i will start off with apple numbers. we were talking to daniel and just the last hour saying he is still bullish on this but he

says apple in particular can improve with the reopening of china. what did at the data that we have show us about that story? >> the data and commentary, tim cook literally said on the call that when china did start to reopen, they started to see demand. he also said had it not been for the supply chain constraints experienced, china is the principal site of assembly for pro models of the iphone 14, cook said they would have seen growth in the iphone segment. they missed the top line overall , but also in key segments like the iphone, which is interesting. you can get some word looking -- forward looking guidance on that from qualcomm. in their call they were talking about softness and the handset marking carrying on for the first half of this year. otherwise, it is all about apple managing its supply chain, costs , but ultimately they missed across most of their segments in what is a challenging

macroenvironment, and acknowledge that as well. shery: we are looking at amazon for a feel in consumer demand right now, but it was there web services side of things that showed slowing down. >> this what the surprise, the fourth quarter for amazon was pretty good but muddled because they took an impairment charge on the layoffs. that was to the tune of 2.7 begin dollars, which reflects the cost of severance for the 10,000 layoffs at the canals. $2.3 billion it decline in the value of amazon's rivian shares. the forward-looking commentary was not as strong, they saw first quarter revenue coming in at $121 billion to 126 billion dollars, below street consensus for what they were hoping to hear. the commentary is around ongoing slowdown at aws. four years aws has basically accounted for all of operating income, so it has been the cash

cow that has allowed the freedom in e-commerce and subscription business. that is changing out given the slowdown. haidi: cloud is a factor for google as well on top of what we know is a very challenging environment for ad revenue. >> what we heard from alphabet was that they had knowledge that challenging environment, they are committed to efficiency and cost cutting, and that appears to be a theme for tech in this particular quarter. shares of google' disparate falling, down as much as 6% about paring those losses as the analysts' calls got under way never the missed expectations, that signals slower demand for search. sales, ex partner payouts, 63.1 begin dollars in the fourth quarter versus $62.3 billion expected. the lackluster results, as at the core ad business is under

attack on multiple fronts. it is not just economic conditions, the west justice department has called for a breakup of alphabet's adept technology business. at google, which drives most of its ad revenue, may be under threat from new entrants. the company is working to make a more durable cost structure, and again the focus on ai. the cfo spoke to ed ludlow after the numbers at the tape, it was a no excuses phone call addressing ai, which will again be a focus. bloomberg reported the last year google declared a code red in response to the popularized checkbox, which many on wall street and silicon valley view as the first real competitive challenge to google. in some reset, this is a company that has already gone through massive cuts, does not see more

coming although they will meaningfully slow the pace of hiring in 2023. and, in terms of the sprawling portfolio that alphabet now has, mixed results across the board, but the closely watched cloud unit lost less than expected. shery: and you spoke to ruth porat. what was important to you? >> it was interesting, su's point was that they were no nonsense about a lot of things. when it came to ai ruth was defensive pointing to the idea that google has been working on ai for a long time. she talked about momentum, how excited they are. breakthroughs coming from our research team, and heavy emphasis on research. i think what this tree has been looking for is evidence that they will pull back the curtain. show us, what have you been working on? the pressure has been on them in terms of what microsoft has done with its investment in chet gpt

-- chat gpt. porat was talking about underlying results of frankly reflecting what is happening in the underlying economy. there are macroeconomic headwinds, and you see print advertising budgets. i think the final thing for me that was so interesting, in the earnings statement, they talked about the impairment charge, 1.9 billion to 2.3 billion, but what this is all about is readjusting. this is a company that became bloated. 190,000 employees, a lot of those cuts are taking place right now here in the u.s., but they have not started yet internationally. in their statement they warned of perhaps unforeseen or additional costs on top of the impairment charges that they stated, and the reason behind that is they have not gotten to layoffs outside of the u.s. that is the unknown coming into the rest of 2023, but slow down, they are not hiring right now. they are focused, they are a

lean, mean googling machine. shery: that efficiency is key right now as costs rise across the board. ed ludlow, great conversation, and su keenan joining us with a big stick hours today. we continue to see the crisis surrounding the adani business empire. goldman sachs and jp morgan seeing a silver lining in some of its bonds. let's bring in sally bakewell. is the only way up for here given the huge meltdown in stocks and bonds? what are they saying? >> despite this $108 billion wiped off its bottom line, goldman sachs and jp morgan are still seeing some of adani of las vegas bonds that there is value and telling investors they should pay attention to them. these bonds in particular, they pertain to the largest port operator in india. it has presence in 13 of the

domestic ports, and it is the fourth largest mover of cargo. stable, independent regulated asset. while the bond slipped into distress territory earlier because adani had to cancel its share sale, goldman sachs and jp morgan are saying they are liquid enough to trade and well-capitalized. haidi: we have seen one firm making a bond payment, other ways in which adani is trying to shore up sentiment and confidence as well given that we have seen some of these banks making changes the way that they accept as collateral relating to adani. shery: that is right, i think the big fear is that this will end up in some of the company's lenders pairing their exposure to the company. so far we have seen the likes of citi and credit suisse stop accepting adani company bonds as collateral on some of their loans to some of the clients. in an effort to shore up

investor confidence, we saw that adani pledged to pre-pay with the pledged shares at some of his loans, so it really is a kind of effort at the moment to tell investors, its top debtholders that the company is on stable footing despite this catastrophe that has befallen it. haidi: sally with the latest. let's get you to vonnie quinn. vonnie: the make of it is single the fastest pace of interest rate hikes in three decades may be trying to a close after raising its benchmark lending rate .5 at one point. policymakers like on andrew bailey voted seven-two to resume to order percent. i told us there is still a long way to go when the inflation fight -- in the inflation fight. >> we will react to inflation evidence that we see. we have not preannounced intention, because we have reached a point, and as i said

we have started to turn a corner. that is encouraging. there is a long way to go and a lot of risks. vonnie: the cb lifted interest rates by .51% to 2.5%, the highest since 2008. policymakers say under the move is almost certain next month. their winning the most aggressive monetary tightening in euros on history is not done despite conceding the inflation outlook is improving. >> the governing council will stay the course in raising interest rates significantly, at a steady pace, and in keeping them at levels that are sufficiently restrictive to ensure a timely return of inflation to our 2% medium-term target. vonnie: the financial times reported u.s. secretary of state antony blinken is expected to be president xi jinping innovating during his two day trip to china, which begins on sunday. a foreign ministry spokesman said in a press briefing that china hopes the u.s. will form

the so-called correct perception of the nation and seek results rather than confrontation. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. shery: we hear from a central bank chief pushing for gender diversity that can benefit the whole economy. ours was have conversation with sarah. our next guest thinks the fixed income market may perform better . more analysis on the risk assets in just a moment. this is bloomberg. ♪

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>> i think the fed good tail dovish rather than what is priced in, but it is short-lived because at the end of the day when you look at the basics ahead of them the fed is going to face tough trade-offs between actually getting the inflation that they want and the economy slowing more than they want. shery: bridgewater associates new cio speaking exclusively with bloomberg. our next guest says it is encouraged by the strong start to the year across risk assets but it is not sounding the all clear. joining us now is a cofounder, good to have you in new york. let's talk about why you are

cautious. is it more the potential hawkishness coming from the fed? the potential earnings declined we might see this year? >> we are not through enough of the year or the end of the credit hike cycle to know exactly what is in front of us, but i think there have been early indicators that tail risk is coming down, so we are optimistic that there are a lot of opportunities within the asset class into fixed income we think investors should be thinking about. they need to be cautious, of course, because as you last comment from bridgewater engined there are still a lot of trade-offs the fed has to make. we are not anywhere near the goal of 2%. in fixed income it is an entirely different year in 2023 than it was 2022. shery: tell us why and what you like? >> we think about the basics. rates are as high as they have been in 15 years.

yields in credit across ig have doubled. you are starting interbase that is helpful to investors, and fixed income can be an important diversifier in a portfolios if the equity markets have more weakness or a downturn because of a recession whether it is a soft landing or there is more volatility during the year. that is an important position to start out with in fixed income, which you did not have last year. yields and rates were close to zero. it is a different year structurally. there are important entry points into each of those asset classes. haidi: what are the biggest risks then? there is so much uncertainty i'll be at the trajectory of the economy, what central banks do and whether there is potential for a policy misstep. >> what we are watching carefully and everyone is watching carefully is whether or not even though there is is

exuberance in the market today at whether central banks will have to strengthen their resolve against their goals, but just your last segment we heard two central bankers be very clear that they have more work to do. there are risks that the lending we are going to hit is not as soft as others are feeling that it is today, and we need to pay attention and listen to the central bankers it. we say here do not fight the fed. you need to see other economic indicators come in in a way that would indicate there is additional risk and things like job and employment in the u.s. are just not demonstrating that there is a problem yet. there is more to come. haidi: shorter-term emerging markets that is one of your constructive investment gains. i am -- themes. i wondering whether what is going on with adani is impacting

your outlook? >> the way we think the broad asset class in emerging markets should be looked at is through the lens of an additional interest rate risk. it adds a lot of interest rate risk into your experience and exposure in emerging markets. we recommend a shorter maturity, shorter-term emerging market exposure that will reduce your interest rate risk and also help long-term smooth out your experience and lower volatility overall. the reason we like that is the recent returns in emerging-market assets in debt in january were over around 5%. most of that was driven by interest rates. you are not getting to the fundamentals of those underlying economies and what is going on individually, so we think you should remove that, get a more pure play exposure to the emerging-market category, and

you will reduce volatility by doing that. over the long term we like emerging markets. we are looking for ways investors feel confident about entering into the emerging markets, because they have individual issues pop up but we think people should be looking at getting back in. shery: good to have you with us, thank you so much joining us in the newark studio. you can find a roundup of all of the stories you need to know to get your day going in today edition of daybreak. go to dayb and also available anywhere on the bloomberg app. this is bloomberg. ♪

shery: apple falling deeper into the red after having a difficult quarter revenue drop, a 5% year-over-year including declines for the iphone, mac,

and wearables. take a look at amazon and alphabet as well, some mixed results. hiring at alphabet is expected to meeting the slow according to the cfo. amazon saying ad revenue currencies have muddled, sales forecasts are disappointing. haidi: let's get a quick look at a business flash headlines. apple has decided against replacing its top product designer, it marks a shift for the company monks elevated for the look and feel of its devices. evans henke will not be replaced when he leaves. the company's core group of designers will report to the coo jeff williams. sony lifted its four year profit outlook after record playstation 5 console sales help beat earnings estimates. it has raised its forecast to 19 million for the fiscal year ending in march after selling 7.1 million units over the holiday quarter. it hiked its operating profit

forecast to 9.2 begin dollars from just over $9 million. deutsche bank is preparing for job cuts to keep cost inject focusing on areas outside of the trading unit. the ceo says meeting expense targets in an inflationary environment will require savings. profit and revenue fell short of estimates as gains and incomes fell for the first time in 10 years. the u.s. justice department is looking into silver gate capital and its dealings with sam bankman-fried. it is examining accounts tied to ftx and alameda that as to scrutiny of the bank, although it has not been accused of any wrongdoing. shery: look at how u.s. futures are trading, we see the downside after those after hours from big tech continuing to be pressured. earnings are a bit mixed. u.s. futures down, nasdaq 100

futures leading declines. we have the nasdaq 100 on the cusp of bull market territory from its december low. we are watching dow jones futures down .2 of 1% after we saw the market rallied for three consecutive sessions. we continue to watch the treasury space as well when cash trading starts in about half an hour. treasuries rallying and extending the global bond rally with that 10 year yield pushing down to below the 3.4% level and the dollar rising against every g10 peer except the japanese yen. the japanese yen saw a bit of strength for the third session this week. haidi: talk about the global bond rally, the rally and treasuries extending into the early part of the australian and new zealand session as well. this is what we are watching when it comes to trading in australia, equity softer about point one of 1%.

you can see the move in the three year yield as well as the 10 year as well. bravado and confidence building among traders is spreading to the friday session in australia and new zealand this friday morning, echoing what happened in the u.s. treasury we sought midweek --s aw midweek with the very soft fall. aussie dollar holding steady. we are watching in this final trading session the early gain that we saw across futures for australia has not materialized. chicago nikkei futures looking a bit

>> we are just getting an announcement from the cftc saying their weekly report will

be delayed due to a cyberattack. this is weekly positioning data giving idea about what managers and hedge funds are buying and selling. the report will be published once trades can be reported. they have commented on the impacted commitments on traders. this is really just another way we have seen the impact of how the cyberattack has impacted the world of derivatives in such a massive way. this began on tuesday morning in europe where we had a critically important software company that is london-based succumbing to attacks. also now cftc announcing the impact on their deals and their ability to report. shery: let's delve into some central bank stories. we had two big ones delivering

rate hikes both leaving the door open for more. kathleen hays is joining us now with more. what was the message? >> the message was we have more to do. both banks doing 50 basis points rate hikes. let's start with the ecb. they raised their rate after inflation has come down. this shows you the wide gap between their headline inflation and he rate. -- key rate. the eurozone inflation, the question is for the court, it hasn't peaked yet. it is stuck at 5.2%. christine lagarde made it clear in the ecb policy statement that

they intend to do another basis point hike. she also warned everybody don't doubt us. we are going to get this done. let's listen. >> the governing council stay the course and raising interest rates significantly at a steady pace and in keeping them at levels that are sufficiently restrictive to ensure a timely return of inflation to the 2% dm term target. kathleen: moving onto andrew bailey and bank of england, they raised their key rate by 50 basis points to 4%. they also have an inflation rate that is very high. the last report showed it moving unexpectedly down to 10%. it has been up to 11%, so that's a nice move definitely not enough even though they do expect inflation to fall

sharply, again another central bank he rate that is negative. there was a bit of back-and-forth between the markets and the bank of england because on the one hand, they are saying they expect inflation to come down but at the same time, bailey left the door open to another rate hike. >> the risks around our central projection skewed significantly to the upside. more so than at any time. kathleen: with the u.k. economy facing tough times ahead, two of the members on their monetary policy board did descent.

they still got the 50 basis point hike today. the hawks in the lead. not only at the bank of england but also the european central bank. haidi: hours from now, we will get the u.s. jobs report. will that restore burden the case for more job hikes -- rate hikes? kathleen: the idea is that it will be report that will show some slowdown in the pace of payroll gains but maybe not enough to make the fed feel they don't have to keep their door wide open to more rate hikes. payroll is expected at 189,000, the smallest gain in two years. these are still solid gains. they are not showing weakness in the labor market at all. unemployment is still low.

our team says cooling in the labor force gains are not enough. we know tech jobs cut have been the biggest force on an industry basis that have helped give the since the labor market is cooling off. finance another industry as well. in job vacancies for the latest month, we see a move from 10 million back up to 11 million and that is particularly in services jobs food services, retail. this is where wages are rising. the tech jobs may be getting the headlines, but the terms of the strength in the labor market where you still see a lack of coolness, something that is still too hot, services will be in focus after the jobs report tomorrow and certainly as the

fed looks ahead to its next move. haidi: kathleen hays. now let's get vonnie quinn. vonnie: president biden's top economic adviser will step down later this month. he helped craft much of the president's economic legislation in the first two years of office. president biden has not yet named a successor but candidates include the fed vice chair. an x out activist says he expects that people -- to stay there long term. he told us he expects to leave the city two years into the program and is urging -- >> we need support for the things that are going to count to china's narrative. the preservation of our culture,

identity, efficacy is crucial when it comes to whether we can have thriving in a community. vonnie: hong kong has revealed details of its plan to hand out air tickets to lord visitors. -- lou are visitors. the giveaway will begin at the start of march and last six months. hong kong had 600,000 visitors last year compared to 56 million before the pandemic. u.s. regulators are said to have asked hedge funds to look into the use of whatsapp and other social platforms for continuing cash conducting business. the sec wants to find out if unofficial apps are being used to hide deals from compliance departments. 2700 journalists and analysts in global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn.

are we seeing any signs of abating? >> as the big question because the losses this week have topped $108 billion for the adani group. the big question is whether we will start to see the sentiment recovered today. you marked the big stores at the top of the hour. we have goldman sachs jp morgan saying there is value in the debt and that the group could be in talks with creditors to prepay some of its loans. this chart sews -- shows some groups in the company down as much as 60%. even after adani appeared on local television to defend his position. this shows sign of contagion and

other parts of the indian market. you can't overstate the importance of adani to the local market. at its peak in september, it's companies accounted for one out of every $10 that were invested in local stocks. shery: how much of this is a crisis of confidence and a fear of contagion against a real suggestion that they might not honor their debt obligations? >> in the near term, adani group looked like it was going to be able to satisfy its obligations. as for the deadline of debt repayments, we had a couple of key ones do this weekend one of those was adani ports. the interest payments sources tell us it has made.

as i said, those are trading in distressed territory. you are looking at around 30% in the market. risk perceptions have been rapidly changing particularly when you account for other headlines we are monitoring like citigroup's wealth unit. credit suisse both of those groups stopping to accept adani debt as collateral. the key question as to whether we can try to limit the contagion could really come down to how the government response given that adani group is pivotal to the country's growth ambitions. we have not heard anything yet from the prime minister on the selloff. shery: that's the latest on adani. mark mobius has comments.

he told us india remains on the track to government but the government needs to learn from the crisis to draw more investors. >> it's an adani problem. an incredible country, incredible prospects, high-growth, young population. i think it is just one of the particular scandals you get in capital markets and it will pass. >> where is the risk to contagion that you see? banks are saying we aren't going to accept debt or stock as collateral. is there a contagion effect? guest: banks will now be much more cautious as a result of this. that will impact some of the highly indebted companies but those companies that have strong

balance sheets and low debt will do very well. there are always winners and losers in any story like this. >> how should the government be reacting? that feels like it could become increasingly critical. guest: the motive government is on the path to reform. they are going to look at this very carefully because they are quite concerned about the capital markets. in one sense, this is a very good situation where the government is put on notice that you have to wake up to the situations and be careful about some of these companies that are heavily in debt. in that sense, it's probably a good thing taking place at an early stage of development. >> you're looking right now at adani making his case that there

is enough capital in the company. do you think, what would you be buying? we see the index getting hit over the last two weeks. where do you want to be buying? guest: the software companies. more important, going forward india is going to become not only a software source but a place where high tech manufacturing takes place. we are companies in that space. and health care. people have more money in their pockets, they're willing to spend more money on health care. >> emerging-market equity and debt has been on the terror since the beginning of the year. do i chase that rally? guest: i would. at the end of the day, the emerging markets look better

going forward. you can see the currencies are beginning to recover. in addition, the growth rate is very good and some of those countries. you have to pick and choose. but india is one great example. taiwan is doing well. other markets are doing well. haidi: capital markets mobius founder. coming next, a talk about what her role means for other women in a male-dominated industry.

>> just over a dozen women leading central banks globally. i spoke to her exclusively in santiago and asked what she has learned in her role so far. guest: i think being a woman in this position helps to generate role models for women who enter the economy and who want to participate in the economy. in the work itself, the challenges are to decrease

inflation whether you are a man or a woman. i feel like a have a responsibility because there's always going to be a sense of responsibility in this position and a responsibility toward women. essentially, the job is to decrease inflation and the difficulties would be the same for a man or a woman. how to select of gender diversity affect the global economy? guest: we are losing a lot of talented women. there is a talent pool we need to take advantage of. that is a loss for the economy. women bring a distinct perspective and they have a lot of productivity to contribute. that's what we are missing in the economy. therefore, this effort toward inclusion not only generates a proper stability for women, but it also adds an additional boost to the economy. i am optimistic.

i believe the first steps are more difficult and after that, there are ways of change that make it easier. years ago, there were only images of male leadership and that is changing over time. i trust that this waveband having more women will progressively contribute to change. >> what would you like to see to achieve gender equality? guest: i think it's a process that we have to keep adapting to. men also have to adapt. there is a phenomenon starting to occur where men feel discriminated against as well and we have to achieve is to work together because we want the wealth of joint work. what i would like and what i always tell my daughter is don't way to think there are limits. you can do whatever you want. what i don't want for you is to

let yourself be carried away and not do what makes you happy. i would like to see women without restrictions choosing what they want to do and being able to do it. >> that was the chile central bank governor. you can dive into any of the securities with the bloomberg functions we talk about and join in on the conversation sending us instant messages during our shout. this is for bloomberg subscribers only. this is bloomberg. ♪ actively cools, warms, and effortlessly responds to both of you. our smart sleepers get 28 minutes more restful sleep per night. proven quality sleep. only from sleep number. sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh

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go to getrefunds.com. >> three months after ftx -- said he was left out of deals at the exchange, brett harrison told us he was misled about the activities of sam bankman-fried and other executives. >> like with everyone else, it has been an unbelievable devastating revelation about what has been happening. reading the details and the indictments, it is clear that there were deliberate steps taken to mislead investors, to

mislead internal employees like myself, to hide what was happening from the general public. that has been the most shocking part of all this. this was not something we could have ever really known given what steps were taken to hide this from everyone. >> you are a senior executive. the head of ftx u.s.. should you have known what was going on? guest: one thing i said publicly was how much i and the other senior executives had struggled to try to get more information about what was happening, to establish more protocols internally for separation between the entities and to increase the level of communication between sam, the other officials, and ourselves. it was frustrating how little we were kept in the loop. also things about the day-to-day operations in the company. deals that took place over the summer, different acquisition

targets, decisions that were made. we were left out of them. >> were you involved with thing 's? where honestly you look at the bankruptcy filings, a lot of ftc tokens were involved in that deal. guest: for that specific deal, i found out about that because a reporter called me and asked me about the specifics. i knew nothing about it. it was frustrating for me i was supposed to be the president of ftx but to not be told what this deal was and to ask questions and get very little in response. >> you said you were misled with certain information that you are not only left out of but misled upon. what are examples? guest: the prime example is about alameda. the prime -- private message as

well as the public one was this was a company that was completely separate, walled off from the employees of ftx u.s., they didn't have any special access or privileges with respect to the exchange. what has come to light reading the indictments is that was completely not the case. shery: the former ftx u.s. president. apple shares fell in extended trading after first quarter revenue missed expectations. revenue fell 5.5%. it says services were a bright spot and china showed marked improvement in december as covid zero was dismantled. amazon shares dropped in trading. big corporate customers reassess their tech spending.

alphabet tumbling as fourth-quarter sales fell short of expectations. the ceo put ai front and center in his response saying that the technology will soon be incorporated into the court search business. the market opens insolent tokyo or next. -- the market opens in seoul and tokyo are next. this is bloomberg. ♪

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>> this is earnings from big

tech after hours dampen sentiment, we had seen before the market closed, wall street rounding in the nasdaq 100 on the us of bull market, but right now we are seeing that downside pressure play out. haidi: really playing out as the broader concerns of the economy and recession fears month he pulled back in consumer demand being evident right across the mers and loud and advertising. e-commerce and cloud and advertising. annabelle: you fed and tech earnings are still major things we are watching. we are looking at the start for japan and korea and cash treasuries. we do still continue to see that pullback in treasury euros -- yields. the expectation in markets that we could be nearing the end of the rate hiking cycle. that is still hang out as the 10 year yield comes online this

morning. that focus now shifting to those earnings from apple, amazon, and alphabet. all of those weaker in after-hours trading. we are also watching a more local factor in japan, earnings season is well underway, we will be checking how sony, mitsubishi, ufj ma and airlines them online in just a moment did we are still looking fractionally higher with the nikkei two to five trading up 0.2%. the yen old and fairly steady. no changes in policy before governor kuroda steps down. let's change now to what we are seeing for the open in korea, we will be watching that because doc index very closely as we go through the day's trading. now trading flat, doing a little bit better than the broader kospi index create you can see that apple is still off more than 3%. one to watch, apple reporting a steeper sales decline than wall

street had feared. it does show that impact of an economic slowdown. the supply chain snarls are still being worked out. we are seeing the korean won looking fractionally weaker. yesterday it did move its most in around three weeks. down to those expectations around the fed. those more rate sensitive sectors that are actually leading the gains so far. real estate and i.t. among them. energy is the big lag this morning, that is playing out what we are seeing with wti. it is trading fairly flat, really struggling to find a bid after the fed's recent comments spurring traders and to other parts of the market. haidi: adani's businesses, let's get back to our top stories. having lost $108 billion this week, after allegations of fraud and stock manipulation leveraged

by hindenburg, that rouse is having more broad implications, dragging down the broader market and the impact on emerging markets to. the ms ci indian markets is inching closer to a technical correction. let's discuss all of this with wendy, chief asia and equities strategist. from our broader conference point of view, what is the significance that you are attributing to what is going on with adani and the indian markets? wendy: i think it is taking place at a time when we are looking at the conversions of returns from north asia and south asian markets. i think in the economy, it is the structural growth market on the long-term deal. the issue is that people have had is really about valuation. when we look at where it has been trading, it has been about one standard deviation of historical mean, under 18 times.

i think to an extent, you have a correction at some point. people go through the earnings season, gaining comfort on the inflation impact on high base, those are both negative headwinds. then i think you will see the buyers coming back. it also had an impact from the reversal of fund flows last year . the favorite market in asia, this year the money is moving to north asian markets. i think we are in the midst of that overhaul adjustment. annabelle: it is interesting, because we had similar episodes when you take a look at conglomerates in china. neither of those instances resulted in this that we are seeing happen with adani and india. when it comes to china, does it provide this google forced to the rest of the emerging-market

asset class? does it act as an anchor,'s knowing that we are expecting more gains in the economy and markets there? wendy: i would agree with that. i think when markets have major issues, you would have some companies taking more of a spotlight. i think for china, definitely a very strong cyclical upturned they will be anticipating after three years of aiding the pandemic. i think the investors are willing to hold until q2 to see the numbers. and then i think more broadly speaking, when china reopens, it has a very positive spillover effect to many parts of the yen, very notably in hong kong, in thailand, singapore, this is the

uplift from the tourism spillover. and then also, it has a broader impact on the materials demand and commodities demand. shery: is china cheap enough to offset its fundamental issues around the property sector? really the uncertainty that comes with government crackdown? wendy: when we look at msci china, if it is below nine times, it is a [indiscernible]. we had that in october. then j.p. morgan was pretty early in calling clients to his vision for the easing of mobility trade in the first week of november. at this, it is closer to 11 times bullish target for the year, it is about 12 times. i think pushing that beyond 13 or 14, people need to have a very different view on the geopolitical risks. within that range, i think there

are a lot of investment opportunities. shery: you mentioned other markets that might benefit from china's reopening. how does korea and taiwan really they into that calculation, we have seen a lot of pressure on the export side of things. wendy: good question. when we look at asia and japan, china is a market that trades at a bit of a discount, because very concerns for cyclical upturned is very impressive and the fund flows are coming back. korea and taiwan are deep cyclical markets tied to the global tech cycle. when we look at the downgrades in tech earnings, they are down about 30% from peak to where it is. that is consistent with the typical drawdown in earnings in other major tech cycle correction. i think at this point, there is confidence that the earnings

have been sufficiently cut and there is going to be a rebound. asia x japan, china's earnings have started to recover in october. we think korea and taiwan are frothing to a significant level and ready for a rebound, where as south asia and india, they are still in the trough in process. shery: thank you, wendy. we do have an alert right now. ryan cohen is set to be taking a sizable stake in nordstrom, according to the wall street journal citing sources familiar to the matter saying that cohen intends to urge the department store chain to make changes to its board following a share price decline. ryan cohen is known for helping those big rallies including gamestop and this, coming from

the wall street journal that he is amassing a sizable stake in nordstrom. let's now turn back to annabelle for some movers in the asian session. after we got those disappointing results from apple. annabelle: what is interesting, we are seeing some of the bigger suppliers moving higher. just under 10 minutes into the session for japan and korea. as you said, those numbers are worse than what was feared by wall street analysts. apple is really showing that impact, still snarls ongoing in the supply chain. we also had seen apple supplies falling in the u.s., like skyworks and the adrs for tsmc. let's change now, as i said earlier, we are in the midst of japan earnings season take a look at these stocks coming online. sony is rising pretty sharply at the start of trading. it did raise its outlook, strong demand for the playstation 5.

sales hitting 7.1 million in the holiday order. the company's cfo saying that demand and momentum for building the ecosystem is having some question marks. panasonic is lower today, we did see a cut, its operating income guidance, ms. the average. ¥280 billion. saw ¥320 billion previously. in terms of what else, mitsubishi and ufj looking fractionally weaker. it did report net income that beat the average estimate for the third quarter. it did take a big hit with its sale of union bank in the u.s.. just tracking what is happening with japan airlines, not great numbers coming through for the airline. not too much momentum for the rebound in tourism as yet. haidi: let's get to vonnie quinn. vonnie: adani's businesses have

now lost one await business -- dollars in a week. -- 108 dollars in a week. sources say goldman sachs and j.p. morgan are telling some clients that the adani empire bonds can't overvalue, and we are told it its unit may dollar bond payments as scheduled on thursday. u.s. secretary of state antony blinken is expected to meet president xi jinping during his two day trip getting sunday. china's foreign ministry said it hopes the u.s. will seek results rather than confrontation. the u.s. has been pressing ahead with a campaign to limit china's access to semiconductor technology. president biden's top economic adviser will step down later this month. he helped craft most of the economic legislation, including pandemic relief. the infrastructure law, and the trillion dollar inflation

reduction act. resid biden has not yet named a successor. -- president biden. the trading commission has delayed its weekly trading report for the derivatives market. follow-up from the ion trading u.k. cyberattack continues. the regulator says the ongoing issue is impacting some members ability to provide accurate data to the cftc. 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: still ahead, we will get the global outlook for the entertainment industry with imax ceo, richard. here why ark investments cathie wood sees u.s. deflation as both a risk and an opportunity. this is bloomberg. ♪

shery: we saw pressure in the after-hours session with apple down on a difficult quarter. we had revenue dropping 5% on the year, including sectors like iphone and mac. we also had declines for alphabet, it was affected by the digital slowdown in the sector broadly. amazon sales rose 9%, beating expectations. amazon web services also disappointed. you can see that sea of red in the u.s. after-hours trading. take a look at how asian suppliers for apple are trading at the moment. we are seeing a little bit of a mixed picture there. let's bring in ed ludlow who can explain this for us. we have seen apple being a very strong performer in the tech sector. this time around, it seems to be really disappointing. ed: part of the story around the

mega caps is we are coming from a lower base. we have seen a recovery from what was a pretty tough and to 2022 december was the worst month for apple. revenue declines, 5% year on year. they missed estimates in most categories, the iphone being the most important. and tim cook was pretty straightforward about it. had it not been for the supply chain issues, apple would have seen growth, at least in the iphone category. what was interesting to the upside is that when china reopened toward the end of last year, they did see an uptick in demand for their products. they are blaming it pretty strongly on what was out of their control and less focus going forward or in terms of a formal outlook. i go to cloud, again, softness across handsets in the first half, cloud, is a key supplier for apple.

we can use that for a crystal ball of what may come through the smartphone market. haidi: what about amazon? whether you look at cloud, whether you look at the computer -- consumer, it was pretty grim. ed: it was weird. amazon's fourth-quarter sales were up above expectations. it showed there was some staying power for the e-commerce side. we didn't see a pretty sharp slowdown coming in aws. we have gone from a position of 40% topline growth a year ago, down to 20%. that is a pretty sharp deceleration. the outlook, the commentary from executives was that slowdown will continue for a number of orders. why do we care what aws accounts? it is the cash cow that allows the giant that is amazon to operate the way that it does. the financial impact from the layoffs, they announced 18,000

jobs would be cut, that manifests itself as a $640 million charge. there could be some more costs going forward. a drop in the ev maker also showing up in the balance sheet. shery: you had a conversation with ruth, what did she say? ed: the results overall show the core search business of google is not immune to what we have seen in the global slowdown in the advertising market. fourth-quarter revenues, excluding traffic acquisition costs, came in below estimates are you what she told me was the underlying results just simply reflect the global macroeconomic conditions, the headwinds that the company is facing. there was commentary on the earnings call separate to that about how advertisers had pullback budgets. travel was a driver for search, they have narrowed the loss on their cloud unit. they are trying to play catch up when it comes to competition against aws.

the big focus was on ai. everyone is waiting to see what google does with ai, because it has been asked her minting and investing in this field for years. ruth just gave a bit of a flex, you can see what she had to say on the screen. she also told me that they have been working on that for very long time. the market is saying, show us, then. when are you guys going to roll this out? haidi: thank you, ed ludlow. we have cathie wood seeing deflation as the biggest risk to the u.s. economy but also a big opportunity. she also told us she would not be surprised to see the fed cut rate. >> i think the markets are speaking loudly. i think the inverted yield curves, still around 70 basis needs, we haven't seen it this low since the early 1980's when volker was trying to strangle

inflation, and he did so. >> are you expecting the fed to cut rates this year? >> i would not be surprised to see the fed cut rates. one of the other reasons that we are very focused on this message that the bigger risk is deflation, it is also a very big opportunity. when we look at deflation, there is good deflation and bad. the bad at deflation is caused by demand destruction. the good deflation creates demand. that is what our research is centered on. technologically enabled innovation that rides down learning curves, which are asked rest by cost declines which turn in to price declines. you will notice that tesla is

cutting prices. many people jump to the conclusion that they are having so much trouble now, there is so much more competition. no, tesla can cut prices now that supply chain issues are passing us because it is riding down a cost curve. the battery cost curve declines. i think it's battery costs are lower than anyone else's, its drivetrain costs is more correctly said. are lower than anyone's out there. and so, he wants to proliferate electric vehicles to save us from environmental disaster. that is his mission. he is going to drive down prices. when you do that, units explodes . no surprise to us. even without price cuts last year that electric vehicle demand was up more than 60%

while gas powered demand was down i think below 7%. the consumer preference shift has occurred. we are now in prime time for electric vehicles. shery: that was kathleen would -- cathie wood. if you need a quick look, you can go to dayb . the stories you need to know to get your day going. you can also find it on the mobile. this is bloomberg. ♪

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haidi: china is reaching out to u.s. allies. both japan and the netherlands have joined the u.s. inputting curbs on china's chip sector.

beijing has responded by telling them that china remains committed to doing business with them. let's get more from rebecca. we hear that beijing has been lobbying in terms of talking to the netherlands and japan. this just after we heard the agreement that was struck between these parties plus washington in terms of really curtailing access to some of the high tech needed, particularly for china's own chip sector. rebecca: we have seen china's foreign minister team going out in full force, speaking to his counterparts in the netherlands and also in japan, pushing and urging them to shore up and firm up the supply chain and to continue preserving the global standards for free trade. earlier this week, we also had this statement from a spokesperson of china's foreign ministry, emphasizing that what the u.s. is doing is abuse

export controls. when it comes to japan in particular, we have seen china also seeking to ease relations by lifting some of the retaliatory measures that they had introduced after japan started some covid control measures for visitors from china. it is just of note, because china still has those retaliatory measures in place with south korea, for example. shery: we are expecting that trip from secretary blinken to china next week. what is the relationship like right now? rebecca: all eyes now on antony blinken's trip to the u.s.. it is a really interesting moment in the u.s. and china relationship. on the one hand, while beijing has been quite concerned and prioritized and focused on shoring up its economy, trying to get its economy back on its legs, the u.s. has been pressing

its advantage. it has continued to push and expand many of the export controls, extending that ban on some u.s. companies to helps like key strategic assets. for chinese industries. extending it with huawei two. -- too. a conciliatory tone when it comes to these high-level discussions. the u.s. has continued to push and extend its program of economic statecraft when it comes to chips. shery: inks, rebecca joining us from hong kong. here is a quick check on the latest business flash headlines. sony shares jumped in tokyo after the company lifted its four year pro fit -- profit outlook, helping earnings beat estimates. the forecast is now 19 million for the fiscal year ending in

march. after selling seven point one million units in the holiday quarter, sony also hiked its operating profit forecasts to $9.2 billion from just over 9 billion. the u.s. justice department is a said to be looking into silver gate capital and its dealings with sam bankman-fried. the doj fraud units is examining accounts tied to ftx and alameda. it adds to scrutiny of the crypto friendly bank. though it has not been accused. coming up next, get some good news on the bonds, following hindenburg's fraud claims, now tops $100

shery: we have the final pmi numbers from japan coming in for the composite at 50.7 for the

months of january. a little bit weaker than originally expected, but we are still talking about expansion territory after two months of contraction. the services pmi numbers 52 point three, final for january. a little bit lower than originally expected of 50.4, it is still in expansion territory for a fifth consecutive month. haidi: let's take a look at the pmi's when it comes to singapore and hong kong as well. this as we see a tale of two recoveries, the hong kong economy still struggling with the impact of that downside of the covid restrictions. we are starting to see the trickle through when it comes to the reopening of china as well. this is what we are seeing when it comes to the pmi numbers out of singapore, coming in at 51.2. this is really bouncing back from the 49.1 and now back into

expansionary territory. we do know that a lot of the indicators have been looking up recently as the economy has been reopened and we have seen the return of international not just tourism and visitors, but also traded demand and the export numbers. taking a look at the hong kong picture, 51.2 when it comes to the hong kong s&p global pmi. that has also bounced back from the 49.6, putting it in expansionary territory. it will be very interesting to see these numbers, knowing how they are leading indicators, are reflecting that optimism and the return of demand globally without reopening. let's get you to annabelle. von ther a few different things we are watching in the session. kicking off with what we are seeing in the bond space, it is interesting that continued repricing we are seeing around the fed and other central banks overnight. the ecb and b.o.e., looking past

the hawkish messages and thinking it will be the economic data and underlying weakness that will force them to start to cut. we are seeing this retreat in yields. when you talk about economic weakness, you also have to focus on the earnings that came out, including from apple. it is still declining, really showing us the effects of the economic slowdown. also the supply chain issues that continue to plague the company. that is capping the upside gains. korea already trading in negative territory or flat. the other big question is, what happens with china? when you take a look at the equity futures, we can see hong kong looking to a weaker start. chinese futures also in the red. questions over the timing of this recovery. no doubt it will happen this year, but exactly when? not looking too hot. that is playing out in the commodities space, we are seeing

commodities dipping across the board. focusing in more specifically on what we are seeing for oil, it is heading for a second weekly drop. that is down to the china reopening optimism starting to fade. you add to that u.s. stockpiles. shery: let's turn to adani. bloomberg markets coanchor david joins us. we saw j.p. morgan, also goldman sachs, really turning a little bit more positive on certain assets. you look at the debt profile, what stood out? david: we are trying to figure out whether there is an acute issue here of the group's ability to meet short-term obligations. there is some data on the bloomberg, in terms of total debt, we know 4 billion. definitely high-yield.

very long-term maturities as far as the average maturities are concerned. flip the boards please, the other thing we want to talk about, there might be opportunities for swaps at least. definitely a leverage group, that is clear. the debt to equities at about 154. probabilities of default, i mentioned that earlier. let's talk about j.p. morgan and goldman sachs. one of the bonds is giving you yields four or five times what you would normally get. this is what the data is showing you. i would say, there doesn't seem to be anything particularly right now that indicates the inability to make short-term obligations. here is the thing. at what point does a crisis of confidence become a liquidity issue and a solvency issue? we have all seen different stories on this and how quickly not morphs.

to be frank, the difference between genius and madness often enough in this case is the madness of crowns. we will see how this all plays out. shery: we will stay with delving deeper into adani and groups seems to be plunging by the day. it is weighing on india's credibility as a desk nation for global investors. we have emma o'brien joining us now. it has really been fascinating to me, we have made the comparison with similar emerging-market worker governance and debt concern stories. china, hna, evergrande. what has happened with adani that is materially so different in the way that its national investors and domestic investors have approach this? emma: i think it has tapped into

existing concerns about the rise of india and some of the shortfalls and regulatory concerns about the market there. people are interested in investing and what they do say as a viable, evermore viable alternative to china. but, what the hindenburg report and these concerns about adani show, whether they are right or wrong, is that there are concerns and issues around governance and regulatory oversight in india, or at least the perception of that. now you have an empire like adani who is not only very big, he was india's richest man until this huge wealth hemorrhage. it is not only a very big company, but it is closely tied to the ambitions of india and those growth prospects, given

the network of his companies and the involvement in infrastructure building and all other aspects of the economy there. it is deeply intertwined with that india story. i think that is why this is really staying in the headlines. shery: mark mobius was saying this is an adani problem, not necessarily reflecting india as a market. what are we seeing in investors sentiment and potentially, could this be an opportunity for some? emma: i think for niche emerging-market investors like mark mobius, people that are very focused on emerging and frontier markets, and that our lending it is, potentially this is an opportunity that they know india better and some sort of more broader investors. i think that it will definitely be creating a hit to that wider

india story, just when it is an opportunity to take advantage of the weakness of china as it emerges from the very devastating covid zero experiment. i don't think you can separate india, modi, the government, from adani. this is a guy who is building more than 3000 miles of roads in india. he is very key to the nationbuilding prospects and the ambitions that modi has for the country, he controls more than 30% of the air traffic aviation ports. he is very much entwined with the economy there. his fate is very much entwined with india's. whether we see a meaningful hit to the economy and maybe even to modi, i think that is still a question of how long this goes on and how much fuel is added to the flame. you are definitely seeing a

reputational hit right now. haidi: that is one of the most fascinating aspects of this story. how those destinies have been intertwined. what does that potentially mean for a possible impact for broader foreign investment? if modi is taking a hit as a result of all this, that broader loss of confidence in india from a much higher level is possible, too, right? ; this is coming as you have a lot of renewed interest in india. you have apple setting up some production there as part of its diversification out of china, given the issues they have had with lockdowns and things in the factories there. india is having a moment. this couldn't come at a worse time in many ways. people do see modi and adani quite intertwined. they do see how important modi's investment is, not just for

nationbuilding within india, but modi's ambitions elsewhere in places like sri lanka. if that is falling apart, then i do think it raises questions for some investors about the india story. shery: that was emma o'brien with the latest on adani's empire. let's now get to vonnie quinn. vonnie: the big giving and has signaled the fastest pace of interest rate increases may be drawing to a close. this after raising its lending rate by half a point. andrew bailey voted seven to two to raise it to the highest since seven -- 2008. there is a long way to go in the inflation fight. >> we react to the evidence that we see. we haven't preannounced an intention because we have reached a point, i think we have started to turn a corner. that is encouraging. there is a long way to go with a

lot of risks. vonnie: the ecb list -- lifted interest rates to 2.5%. another such move is almost certain next month. they are warning the most aggressive bout in monetary tightening is not done, despite conceding the inflation outlook is improving. >> the governing council will stay the course in raising interest rates significantly, at a steady pace, and in keeping them at levels that are sufficiently restrictive to ensure a timely return of inflation to our 2% target. vonnie: north have asked hedge funds to looking to whatsapp and others for conducting business. the sec wants to find out if unofficial apps are being use to ideals from compliance departments. it has already find banks more

than $1 billion. hong kong has revealed details of its plan to hand out 500,000 air tickets to lower visitors. part of a global publicity campaign seeking to repair the city's economy and image. it will begin at the start of march. they had about 6000 visitors last year, that compares with 56 million before the pandemic. global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. haidi: to come here on daybreak asia. 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.

shery: imax has set a new box office record with $34 million over the six holiday period. total grosses beat the 2022 results by 52%. china's box office is showing signs of recovery as the country pivots away from covid zero. we are joined by richard gou foreign. we are always glad to chat with you. it was pretty easy given the base that we were going off of. there has not really been a normal consumption season for china when you talk about spring

festival for a few years. talk us through the numbers for this year and what it tells you about the strength of ongoing demand as the economy and the chinese consumer comes back. richard: we were extremely surprised by how strong chinese new year was. apartment complexes were closed, drones were flying over, there were covid restrictions, and then all of a sudden, six weeks later, you set an all-time record for chinese new year's. what happened was, right after the restrictions left, a lot of the country got sick and a lot of the vulnerable population died. but it really went through very quickly and people are really trying to get back to normal extremely quickly. just to give you a sense, our internal budget for those six days was about 60% of where we ended up. even sense the main holiday

ended, we have still been doing extremely well. we have been really surprised by how quickly. we have been playing avatar in china, and we are over $50 million in avatar, 23% on the box office and just 1% of the screens. it seems like people are really anxious to get out there and as i said, i knew it would come back, but our surprise is the speed. haidi: does that confidence give you more confidence than to have new installations? are you looking at further expansion in that market? richard: pr, we have a backlog of about 200 theaters in china. 800 are open right now. the backlog, obviously the last few years has been difficult to grow it, because of the closures. i think that will start to pick up next. the other key point is china, for the first time, has been leading in hollywood movies for

the first time in three years. and that is opening with the rest of the world in mid february, we have a warner bros. movie called shazam that got in. it is kind of dizzying, the speed at which these changes are happening. shery: after about three years of what looked like a band, why do you think that is happening? richard: i think there are a lot of factors. the party congress that renominated president xi jinping was causing a lot of conservative judgments and people not making decisions, i think they have appointed a new round of government officials who are more open. i think the primary thing is the focus on the economy in china. i think the economy, as you know, really bottomed out late in 2022. and i think the government is

just going again, for example, movie complexes are anchors to a lot of big shopping malls. i think the government wants people to go out again to shop again and get that economy growing again. shery: so, tell us a little bit more about the plans around the rest of asia. i know you have expanded some partnerships with aon for example in japan. richard: when the first avatar came out, 13 years ago, it was something we called the avatar affect. that is because the box office was so strong, people really wanted to expand their presence globally. we set records for avatar two in about 50 countries. it is our highest grossing film of all time. we got 11% of the global box office, on one half of 1% of the

screens. particularly strong results in asia. a lot of the asian countries have come to us and said, we want to grow and grow quickly so we are in a lot of discussions going on right now about two weeks ago, i was in india. you have been giving that a lot of coverage. i think there is a lot of demand in india. there is an ending movie that just opened, it was our biggest opening weekend ever, including the hollywood movies and indian movies. i just think consumers there have been locked up for a long time, i think it is kind of a rebound going on there. i think our local partners really want to get out there and make sure they can meet the pent-up demand. shery: when you take a look at audience preferences, what are you seeing when it comes to the huge amount of appreciation in

interest we have seen in everywhere everything? now the oscar nominations as well. is there a real shift towards telling more diverse stories in terms of the numbers you are seeing? richard: i find it hard to generalize about one movie. remember the two biggest movies this year were avatar and top gun. i still think there is a preference for blockbuster big action movies, experiences that take you somewhere. i think imax meets that demand. i think there will always be movies like everything everywhere that touch a nerve and that draw in audiences. i don't think it signals a trend change, i think it is more like something that was really good and really kneeling. haidi: we know that you are suffering from laryngitis, thank you so much for taking the time to come in and speak with us.

ceo at imax, thank you. coming up, counting down to the latest pmi data. look for more signs to assess the health of the country's economy. a preview of the china open is next. this is bloomberg. ♪

shery: we are counting down to

the china and hong kong open. let's discuss what to watch with charlotte. this is the last trading day of a pretty muted week for chinese equities. what are you watching? charlotte: this week since traders returned from chinese new year, has been really muted. performance wise, we can see that actually hang saying is -- could be heading for the first week of decline and ending the six weeks. onshore wise, also quite muted. the things investors are watching coming up could be the lincoln visit to china -- blinken visit to china. if that happens, he will be the first secretary of state to visit a lot of investors are closely watching the

relationship could be seen as escalation. haidi: what is china waiting for? it seems like the data was pretty positive, the economy is reopening, consumer is coming back. we just spoke to the ceo of imax talking about their receipts over the period as well. what is lacking when it comes to fresh catalyst? charlotte: some traders are actually saying that could be a waste of time. like you mentioned, those passive consumption recovery from reopening has already been priced in, because we are seeing those huge flows by investors. the positive scenarios having priced in the next that people are really watching are actually the two sessions in march. with regarding this earnings season, a lot of the investors we spoke to are actually looking past the fourth quarter results

because there were so many covid hiccups. from some of the preliminary results, and a lot of them have reported wide losses with some passive surprises. the next big thing is the two sessions in march. haidi: thank you, charlotte. let's take a look at some stocks in focus. asian apple suppliers will be front and center after the steeper sales decline in the holiday period. we are watching the likes of han hi, tsmc, and byd. asian stocks also announcing 500,000 free air tickets to bring in visitors to the city. this is bloomberg. ♪

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david: