>> welcome to "daybreak: asia." we are counting down to asia's

major market opens. >> asia is set for a risk off open after wall street's biggest loss in two months. rate hikes -- the rbnz looking to downshift rate hikes. vladimir putin vowing to press on with his war in ukraine as he suspends moscow's last nuclear treaty with washington. >> i'm at the goldman sachs global macro conference in hong kong, day two, bringing together the bank's biggest names and industry leaders. we will hear from the -- david kostin about why 2023 means the return of alpha after a macro driven 2022. we will have a conversations about the outlook for european stocks and the war in ukraine as it heads into a second year. >> take a look at how u.s.

futures are coming online in the asian session. we are seeing a little support after the s&p 500 was in the red in the new york session. the dow erasing all of this year's gains. it's all the worst day in three months -- it saw the worst day in three months. a combination of fear over geopolitics, poor corporate outlooks, and rising 10-year yie lds, close to the 4% level, as the markets try to reprice where the fed is headed from here. we have u.s. pmi numbers coming in above expectations. we are waiting for the wednesday fomc minutes, as well as the fed's preferred gauge of inflation coming out on thursday as well. we are seeing downside pressure for oil prices. investors trying to figure out where global growth is going from here. haidi: that's a big question. something that is afflicting

australia as well as we get all this uncertainty over the next leg of the china reopening to recovery story. this is a pretty muted story at the start of cash trading. a big earnings day, culminating in rio tinto after the close here in sydney. we will be watching for the impact, given that we've had pretty muted earnings when it comes to some of the big miners already, like bhp yesterday. kiwi stocks are down about half a percent. a further correction could be on the cards. when it comes to price to earnings valuations, kiwi stocks are among the most expensive in developed markets, much more expensive than the s&p 500 and their aussie peers. watching for more hawkish guidance out of the rbnz. the kiwi dollar, the big loser over the past five sessions, could get a lift from the rbnz today. back to geopolitics.

president putin is pulling back from russia's last nuclear pact with the u.s., vowing to press on with his invasion of ukraine. president biden says washington and its allies will announce fresh sanctions against moscow. pres. biden: a dictator will never be able to ease the people's love of liberty. brutality will never grind down the will of the free. and ukraine, ukraine will never be a victory for russia. never. >> i repeat, they are to blame for unleashing the war and we are doing our best, our utmost to stop the war. >> let's get more now from washington. john liu, let me start off with you. we heard from putin on the nuclear policy

going forward? jordan: president biden telegraphed new sanctions, but the thrust is the same: the u.s. and its allies will continue to back ukraine as long as it takes. you heard russian president vladimir putin not backing down as well. what that's telegraphing for the next year is that this conflict is going to continue, and there's no off ramps indicated by either leader in their conflicting speeches today. we will have to wait and see how this resolves, but president biden did preview a long and hard road ahead for ukraine as russia girds for a counteroffensive in the spring. >> no off ramp, especially when you have russia also suspended its participation of the new start nuclear arms control treaty. how significant is that? jordan: i think we are going to

have to wait and see what they actually do. the foreign ministry said they are still going to comply with certain elements of that treaty, but it is due to expire in 2026. that leaves uncertainty about whether arms-control will continue. this is the last major arms-control pact existing between the u.s. and russia, the world's two guess nuclear powers. and that's, of course, alarming at a time when there's conflict in ukraine, u.s.-china tensions, a lot of geopolitical concerns. that's one more to add to the list. >> john, what are we seeing in terms of the latest in the seemingly developing relationship between beijing and moscow? john: we have this report from the wall street journal saying that xi jinping is planning to visit moscow. at the end of last year, xi and president putin did have a phone call. during that phone call,

president putin did say to xi jinping that he looks forward to xi visiting moscow in the spring. so, we've been looking for a visit of some sort. it has not been confirmed or acknowledged by the chinese side. it does make sense. we are waiting for xi to unveil a peace proposal that china has been working on for the last couple of months. that will be key, the details of what china is proposing the two sides do to try and reach a cease-fire. whether or not europe or the u.s. would be -- pay attention to that proposal or sign onto it is a big question given the suspicions about chinese support for russia. >> whether it's diplomatically or economically with purchases of oil and gas, right? what has been the response so far from western allies on the potential peace plan coming from beijing? john: i think everybody is still officially waiting until the

details are available. it's hard to have a response. the plan could be such that it would be completely unappetizing or unacceptable for the u.s. and the european allies. it might not be substantial enough for them to get upset about, but it could be substantial enough that the allies and the u.s. would have to actually consider it. until we get the details, i think it's hard to be able to know how the west would respond. >> jordan, what's next for president biden in poland? jordan: the president, on wednesday, is going to meet with leaders of the so-called bucharest nine, those nine eastern flank nato allies, who are really at the frontlines of this conflict, or the potential frontlines. he is going to reassure them of u.s. support for their security. he laid out in his speech in warsaw that the u.s. is still

committed to nato, including the article five, which is that mutual defense aspect of the alliance. he said that is ironclad. we will defend every inch of nato territory, so that's a message you can expect to hear from the u.s. president when he meets with those leaders on wednesday. >> jordan fabian and john liu with the latest on geopolitical tensions on many different fronts. let's talk a little bit about monetary policy. setting the tone for markets today will be new zealand, the rbnz, expected to raise its key rate for the 10th street meeting, even as the devastation -- 10 straight meeting, even as the devastation from a cyclone hangs over the economy. we are expecting a little bit of a downshift, but inflation is still strong. >> a 50 point rate hike is still high. people watching the rbnz very closely, some saying this is the last of a very hawkish central bank -- the very hawkish central

banks. they were one of the first to aggressively raise rates coming out of the pandemic. we are expecting a 50 basis point rate hike. there have been 400 basis points of rate hikes in the past several months. the rbnz saying they see the peak rate at 5.50%, so they still have a way to go. eager to get there quickly. we do see inflation starting -- i won't say it's cooling, but a little less hot. the rbnz thought it would peek at 7.5% -- -- peak at 7.5%. it is far away from the middle of the 1% to 3% range that it is hoped to be in. unemployment is still low. it went up to 3.4% from 3.3%, but that's still there a record low -- near a record low, heat in the rbnz on path towards 50 basis point -- keeping the

rbnz on path towards 50 basis point rate hike. against the backdrop of the cyclone and some of the uncertainty, probably not a bad idea to slow down just a bit. >> our global economics and policy editor kathleen hays with a look ahead to the rbnz decision. we will speak to the governor, to go over today's decision and talk about what comes next, at 6:15 a.m. hong kong, 11:15 am in wellington. let's get you to paul allen with the first word headlines. paul: hong kong is said to unveil its budget on wednesday, balancing the need for incentives to revive the cities international image -- city's international image while keeping spending under control. most expect a return to fiscal surplus, with a balanced budget as the top priority. most also expect new measures to attract global talent, such as targeted tax exemptions. the u.k. government has as much

as $36 billion for short-term giveaways in next month's budget after public finances did far better than expected in january. borrowing over the fiscal year was running well below the official forecast, plus, the treasury received $6.6 billion more in revenue than it spent in january alone, thanks to brilliant tax revenue -- buoyant tax revenue. a bitter cold said to stretch from the pacific coast to the midwest. california's warnings extend to the mexican border with no forecast in the hills around san francisco later in the week -- with snow forecast in the hills around san francisco later in the week. mckenzie is said to be cutting 2000 jobs -- mckinsey is said to be cutting 2000 jobs. it will affect roles that don't have direct contact with client. it's part of a plan don't project magnolia -- plan

dubbed project magnolia. global news, powered by more than 2700 journalists and analysts in more than 120 countries. i'm paul allen. this is bloomberg. >> let's take a look at some of the movers. it's all about earnings. we are watching santos, a modest upside, 1.7%, despite profit more than doubling on the back of the global energy crisis. we've seen demand being strong when it comes to underinvestment in supply. according to dos santos ceo, they are also set to return -- to the santos ceo, they are also set to return dividends. also watching oz minerals, unchanged at the moment. they missed estimates. and revenue seeing a fall of

about 8.5% there as well. all watching -- also watching will work -- woolworths. woolworths group reporting sales pretty much meeting estimates. net income seeing a steep fall of about 88% year-on-year. food sales, as well as comparable sales, seeing a little bit of an uptick. watching coronado global resources, they have been talking about potentially getting that boost from renewed coal demand out of china when that unofficial export ban was lifted between the two countries. we will be speaking in just a little over an hour's time exclusively with the coronado cfo, gerhard ziems. shery: still ahead, we are live at the goldman sachs global

macro conference in hong kong, with the bank's chief u.s. equity strategist david kostin. up next, j.p. morgan's head of asian investment strategy tells us why fixed income investors are about to have a great year as central banks fight inflation. this is bloomberg. ♪

>> u.s. futures muted at the opening of the early asian session, this after losses in new york. we are talking about fears over

geopolitical tensions, for corporate outlooks -- poor corporate outlooks. you have to put it into context. we are seeing how u.s. stocks are trading up 18 times earnings and the rest of the world is at 13 times. u.s. equities have rallied significantly, especially since the october low, by 17%, to a high in early february. our next guest is looking at global evaluation spreads between large-cap equities and the rest of the world. joining us is alexander wolf. always great to have you with us. does this mean, if you're looking at this spread, and it's very wide at this point, that these global stocks will play catch up or u.s. equities will play catch-down? alexander: we think it could be a bit of both, but we are more focused on the catch up from global equities. u.s. equities are trading well above their 25 or average,

whereas global equities are trading at or below. given regard -- what we are seeing with regard to gas prices coming down in europe, causing an improvement in sentiment in europe as well as china reopening, you should see global growth differentials improve as well, with the rest of the world improving, while in the u.s. we are still quite cautious from a growth perspective. >> will fixed income give stocks a run for their money, given how high rates are right now? alexander: that still remains our highest conviction call. given what we've seen with the move up in yields, you can achieve equity like returns. it's the highest yields we've seen, particularly in investment-grade credit, since before the global financial crisis. it is our top conviction call, our highest recommendation right now for clients. given our cautious view of growth, we do think yields will fall, particularly as we get into year-end and we see more signs of growth slowed down, which should provide a benefit

to investors as well. haidi: how much more value can you find it if you look outside of the u.s., given this yawning gap and valuations we are seeing -- in valuations we are seeing? alexander: we've seen a bit of a run-up in europe, particularly in china. we've become a bit more selective. for china, we think there is still more catch up for a shares, especially relative to offshore china. you've seen a lot of the reopening stocks already rally, so we are looking at laggards, some companies that haven't quite caught up, or companies that are going to benefit from china's reopening, but in a more tangential way, whether that's europe or in hong kong, macau. we are still looking at companies in europe that have lagged some of the upside or that still have a large valuation gap. i've become a bit more selective given the rally that we've already seen. >> the questions you are asking about china and the level of specificity about this recovery

is really key, right? whether it's going to result in pockets of inflation, where you see the direct or indirect benefit or exposure. what are some of the things you are throwing around at the moment, given that the lower hanging fruit, commodities and such, have been taken up? alexander: yes. we do see the recovery as being much different from what we've seen in previous china recoveries, if you think about 2009, 2012, 2015. we saw a strong housing led recovery. we think this will look much different. it's primarily going to be led by household consumption, particularly domestic services. looking at parts of the economy that will benefit from that boost household spending, particularly in services. we do think outbound tourism will likely increase significantly as well. it will boost the likes of thailand, even australia, where tourism and education just from chinese alone make up about 1%

of gdp. looking at the beneficiaries of the outbound flow in tourism, and we do think oil prices could see some upside, whereas the rest of the commodity spectrum, likely not that much upside. >> we've seen pressure -- preliminary trade numbers out of south korea were down. will the manufacturing sector be a laggard in this new wave of recoveries? alexander: yeah, we think so. when we look at china's recovery and see what did well the last couple years and what lagged, we expect those to normalize. exports surged last couple of years, as the rest of the world demand was strong. as zero covid did protect production. we think that will normalize and exports will come down in line with the weaker global growth outlook, especially weaker goods consumption outlook, whereas domestic consumption, particularly domestic services, will pick up. the transition from spending on

goods to services, that also will likely continue to weaken exports. we do see the export and manufacturing outlook as one that is facing headwinds. >> alexander wolf, managing director and head of asia investment strategy at j.p. morgan. always great to chat with you. you can get a roundup of the stories you need to know in today's edition of daybreak. you can always customize your settings as well so you just get news on the industries and assets that matter to you. this is bloomberg. ♪ the first time you made a sale online was also the first time you heard of a town named... dinosaur? we just got an order from a dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. godaddy. tools and support for every small business first.

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>> we are counting down to the start of trade in tokyo. some of the stories we are watching. in japan, microsoft and nintendo have formalized their agreement to bring "call of duty" to

nintendo platforms for a decade, a move designed to allay fears about the game coming xbox exclusive. -- becoming xbox exclusive. toyota plans to start producing electric vehicles in the u.s. as soon as the summer of 2025. shery: -- haidi: let's get a quick roundup of the latest business flash headlines. sigma lithium soared in canadian trading on reports that tesla has been weighing a takeover. sigma is one of multiple options that tesla is exploring as it mulls its own lithium refining. hsbc will consider a special payout after the sale of its canadian unit. the dividend may be paid out next year as the bank attempts to face down a campaign to spin off its asia business.

the ceo told us he is optimistic long-term on investment banking operations. >> we are not intending to make significant layoffs in investment banking in asia. we see that as a growth opportunity for us. we've had excellent performance in the middle east on investment banking. we had good performance in asia. we continue to invest in it. we see it as a long-term play, and we are not changing our strategy for the short-term. in terms of the bonus pool, we increased the bonus pool in the fourth quarter compared to what it was going to be because we had a good fourth quarter performance. >> walmart has warned that it is in for a tough year ahead as shoppers feel the squeeze from inflation. the retail giant top estimates and fourth-quarter earnings. it comes as walmart deals with its own pressures, such as higher interest expenses and taxes. >> what we've seen in the most recent quarter is that we've actually had share gain from some of the lower and middle income buckets as well.

as these consumers are being more discerning, as they are looking for value, and in a world where convenience matters, our value proposition is resonating with them. >> coming up next, we will take you back to the goldman sachs annual global macro conference in hong kong, where david kostin will share with us his u.s. earnings expectations. this is bloomberg. ♪ (jennifer) the reason why golo customers have such long term success is because we focus on real foods in the right balance so you get the results you want. when i tell people how easy it was for me to lose weight on golo, they don't believe me. they don't believe i can eat real food and lose this much weight. the release supplement makes losing weight easy. release sets you up for successful weight loss because it supports your blood sugar levels between meals

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>> breaking news when it comes to australia at the moment. this is what we are seeing when it comes to the westpac leading

index, falling 0.08% month on month. lots of scrutiny in terms of the resilience of the australian economy -- we've seen some volatility in the data series on consumer confidence, as well as business confidence, as the rate cycle continues and cost of living and cost of doing business pressures weigh. aussie dollar continues its run as the best performer of the year. shery: take a look at how u.s. futures are trading early in the asian session after big losses in new york. we have several calls when it comes to the trajectory of u.s. equities. a warning sign that could see the s&p 500 sliding as much as 26% in the first half of this year. the goldman sachs strategists think the fed will raise rates by 1/4 percentage point by its march, make, and june -- may, and june meetings.

let's go back to the conference by hong kong -- in hong kong. annabelle droulers is standing by with our next guest. annabelle: we've seen the rally over 2023 all but evaporate in a rates reset. let's bring in a man who knows this better than anyone, the chief u.s. equity strategist, david kostin, at goldman sachs. thanks for joining us. david: nice to be here. annabelle: you say this is the return of alpha. what makes 2023 different? david: it's always the return of alpha. the stock market is ultimately a return of individual companies. last year was unusually macro driven. individual stock returns come from different sources, from the index level, the beta of the market, from rates, from size, from growth, different attributes.

the balance of the return that comes from an individual company, that's the idiosyncratic art -- part. last year, something like 70% of the market return was a function of macro drivers and maybe 30% was from individuals. reverse, and a long-term history is around 60% of individual returns come from individual companies. i think the environment we are more likely to be in is a more visible rate path. it's going to be more the stockpicking side of it. annabelle: going back to historical norms. when you talk about active management, where are you seeing the best opportunities? david: on the value side. we think on energy. there's a much greater share of earnings that are coming from energy, as compared with its market weight. 10% of earnings in the market, may 5% of market cap. that suggests earnings are likely to be higher. we look at health care stocks as an example, where we have growth

in share of revenue. and the is particularly attractive. those are -- and those are particularly attractive. the market trades at extremely high levels of valuation. while there is a distribution of risk always, it is more skewed to the downside on valuation, therefore we are focusing more on the idea of where revenues and earnings are coming from. what's the fundamental case? there's not an argument for big increases on earnings, therefore the evaluation is a concern. rates are moving higher, therefore we are looking for value. that will be the strategy for this year. annabelle: because the equity risk premier, we are back at decade lows here. how much are you watching that? david: we are watching that a lot. there are real 10 year bond yields, 10 year u.s. treasury yields adjusted for inflation. start of the year about 1.6%, got down to around 1.15%, now they are back at 1.50%.

that move has been consistent with the idea of the market. equities rallied as rates fell. now rates move back up, and equities have pulled back. 4000 is our target for the end of the year. . we are right around that level. stable valuation, may be a lower valuation. you will start to roll forward to looking at a 2024 level of profits. that will give you a roughly stable return. cash offers you a very attractive return. on a risk-adjusted basis, you are looking at 5% yield on cash, 0% volatility. equities 0% return, is still currently -- historically around 15% volatility. annabelle: you are gaming up for a soft landing here. no earnings growth over the course of this year. let's talk about different scenarios. what do you see for the s&p 500 if we do see the case of a hard landing? david: earnings would fall in the vicinity of around 10%. historically, earnings come down

in a recession by about 13%. we don't see as many significant imbalance has -- imbalances as we've seen in the past, so we think the pullback in earnings will be less dramatic. margins have rolled over. they peaked in the second quarter. rolled over in the third quarter and fourth quarter. margins are the area of great vulnerability for most companies, and that's an area of big focus for us right now. a lot of the growth in the earnings has come from margin expansion, from the low of the pandemic all the way up to the middle of last year. that's definitely the source of risk. companies that are more resilient margins is an area to focus on. health care stocks have had more durable margins. annabelle: one sector you are also focusing on is consumer stocks. you do see that sector as being a better one to go for, consumer discretionary, is that right? david: cheap cyclicals, and

expensive cyclicals. --and expensive cyclicals -- and inexpensive cyclicals. you could look at some in the consumer area. we can think about some of the capital goods companies as well. they would be beneficiaries of cheap cyclicals. financials is another big area. once rates peak, probably sometime middle of this year, that would be an indication that financial stocks could do better. annabelle: it is interesting, though. you look at those moves on the s&p 500 overnight. there is so much bearish sentiment over the past few days. what sort of reception are you getting to that case of flat growth for the s&p 500 over the course of this year, when it seems like there are so many risks tilted to the downside? david: interesting questions received from multiple client meetings at our conference. if the market rallies 10 or 15% from these levels, what would be the area of surprise?

there's a more bullish tilt to the investor profile and the questions that are being asked. a general observation would be, having gone through europe and the middle east in the last several weeks, and now coming here in asia, the further away i come from the united states, the more optimistic people are. as you move into the middle east, much more optimistic in terms of energy and the amount of cash flow. same thing here. people are generally more optimistic psychologically. they are looking for opportunity sets. a lot of questions about technologies, financials, and we are to be in this market, which is trading at a level where we're likely to be at the end of this year. it goes back to your earlier question. it's a market of stocks. it's an idiosyncratic story for 2023. annabelle: are people thinking about the split between value and growth in the right way? how should people be considering value? what sort of value companies

should they be looking for? david: the overall market on any metric you want to think about, p/a multiple, ebita -- p/e m ultiple, ebitda, finding companies that are attractively valued on a more normalized margin environment is an important attribute, an important aspect. so many companies are having margin degradation, and that is the variable that will be most important in determining whether stocks outperform or underperform in the coming year. those who are able to maintain their margins. not even expand, just maintain would be a good thing. most companies will see margin compression. higher interest expense is one issue. higher labor costs. supply chain disruptions. those are adding pressure to the corporate cost structure for many companies. annabelle: one scenario people have been gaming for is that no landing one. what are your views on that? david: the classification of

whether it's no landing, hard landing, soft landing is a degree of magnitude. the hard landing scenario, if we think about that, maybe the economy contracts 1%. if it's a soft landing, maybe the economy expands by 1%. there's not a lot of differentiation between not from a real earnings point of view -- between that from a real earnings point of view. those are the degrees of variations, pretty small, in terms of what's likely to outperform. if you had a hard landing, you basically want to be aggressive in terms of owning some of the most honorable -- durable balance sheets. dividends and other strategy -- dividends, portfolio managers talk about developing a barbell portfolio. some assets defended -- devoted to a more defensive posture. others that are more cyclically

recovery -- cyclically focused, in terms of recovery. annabelle: david kostin, thank you for your time. we will have more guests from the chief global equity strategist peter oppenheimer and further ahead, the outlook for the war in ukraine as it heads into its second year. >> annabelle there. we will be getting more out of hong kong later on. let's get to paul allen, who has our first word headlines. paul: pleasant and prudent is pulling back from russia's latest new -- president putin is pulling back from russia's latest nuclear pact with the u.s. putin told officials that russia is fighting for its historic lands in ukraine. the foreign ministry said russia will continue to observe the new start treaty's limits on weapons until it expires and that the decision to expand can be reversible. president biden has hit back at putin, saying he can never win this war in ukraine.

in a speech marking almost one year since the invasion, biden also warned there will be hard and very bitter days ahead. pres. biden: a dictator bent on rebuilding an empire will never be able to ease the people's love of liberty. brutality will never grind down the will of the free, and ukraine -- ukraine will never be a victory for russia. never. paul: chinese president xi jinping is reportedly preparing to visit moscow for a summit with vladimir putin. the wall street journal cites anonymous sources, saying the meeting could happen in april or may. it is part of beijing's push for multiparty ukraine peace talks. a top diplomat discussed ukraine with a senior russian official. global news, powered by more than 2700 journalists and analysts, in more than 120 countries. i'm paul allen. this is bloomberg. haidi: new zealand stocks are a

prime target for a correction. let's get more from our reporter in tokyo. i was looking at these numbers this morning, compared to the s&p 500, compared even to australian stocks. how are we setting up going into the rbnz today? >> good morning, haidi. investors are expecting the rbnz to raise interest rates by 50 basis points, to 4.75%. now, that is a -- that would be a moderation from its 75 basis point rate hike in november. but it's still going to bring the new zealand interest rates to the highest level among the developed world. now, that much might have been priced in, but the key point here is the outlook and the

central bank's forward guidance. financial markets are expecting the new zealand interest rates to peak around 5.25%, up 50 basis points from the level, assuming we have 50 basis point rate hike today. in november, rbnz said that it expects the terminal rate to be around 5.5%, above what markets are expecting. given the recent talk that the fed might go higher and longer, investors should be quite nervous about the possibility that the rbnz might also be much more hawkish than markets expect . >> how have kiwi stocks done during the rbnz cycle of rate hikes? this could be the tenth already. how resilient have they been?

why such resilience, considering the tightening cycle? >> it has been resilient. but, at the same time, new zealand shares have underperformed its peers quite sharply, about 20% compared with australian shares, for instance. so, we can say that the rbnz'a tightenin -- rbnz's tightening for the past year has already put pressure on new zealand stock prices. now, the -- new zealand stocks are still trading at 22 times its expected earnings, so that's much higher than 18 times in the u.s. or 14 times in australia. the assumption at the moment is that the rbnz is going to start

cutting rates after inflation comes down. whether that's going to be true or not, we are going to see after today's meeting. >> if we get the higher for longer after the fed. hideyuki, good to have you with us. hsbc says it is considering a special payout as it stares down spinoff pressure from a major shareholder. our interview with the ceo is next. this is bloomberg. ♪

>> asia's reversed an early loss following strong pmi data in the u.k. higher-than-expected costs, despite fourth quarter profits topping estimates. that was something that ceo noel quinn told us was down to the bank's diversification strategy. noel: if you go back three years ago, we were very dependent on profit generation coming from two principal markets, hong kong and the u.k., with a strong international banking franchise overlaying that with transaction banking and international wholesale banking. i'm pleased three years later at the radical change in the profit generation by geography. the middle east alone last year generated 1.8 billion over -- of

adjusted pretax profits. an adjusted pretax profit of over $2 billion. business -- our u.s. business, produced -- even in asia, we got good diversification. we generated more than $4 billion of adjusted pretax profit in 2022 outside of china. that gives me a solid base of geographic profit generation, supported and overlaid with a strong international banking franchise and a market-leading transaction banking franchise. that gives me confidence in our 2023 forecast. to come to your point on net interest margin, our guidance on n.i.i. is 36 million plus. in excess of -- is 36 billion plus. in excess of 36 billion.

we have guided to in excess of that in 2023. good growth. there are some uncertainties on the horizon, but we are still positive. we know where consensus is at the moment. we think consensus is in a reasonable position. we are not looking to change guidance on n.i.i. or -- and i think we are pretty confident we have good prospect of delivering a return next year. -- our return next year. >> let's get a quick check of the latest business flash headlines. shares in credit suisse hitting a record low following reports that the chairman faces an investigation over comments on client outflows. the swiss regulator is trying to determine whether he misled the public. he said client outflows had stopped. that boosted the bank's share price ahead of a capital raise. bank of america's head of

credit and special situation sales has left the company after nearly two decades. the banker has not -- the bank has not announced a replacement. bank of america is in the process of finalizing job cuts. microsoft says there will be no deal to buy activision blizzard unless it comes with "call of duty." britain's antitrust watchdog suggests they may need to divest the title to ease concerns about competition. microsoft president spoke after a closed-door hearing with eu regulators. >> we don't see a viable path to sell off the part of this company, activision blizzard, that makes "call of duty." given that, i think that the alternative is quite clear. either the deal gets blocked or it gets approved with guardrails with regulatory controls. >> take a look at breaking news out of japan. we are getting the ppi numbers for the month of january, coming

in at growth of 1.6%, which is a slight acceleration from the previous month. it is also slightly higher than analysts had estimated. we continue to watch the ppi services number, given the reopening after the pandemic. the key number we are watching out of japan is the cpi numbers for january this friday, expected to show an acceleration to the fastest inflation since 1981. this is bloomberg. ♪

>> the biggest u.s. crypto currency exchange, coinbase, has reported a fourth-quarter revenue decline that was less than forecast by analysts. su keenan has the latest. su: down in a big way. while they beat expectations for these reduced revenue or less of a loss, it is important to point out that this is a company that was in the eye of the crypto trading storm and crypto winter. their revenue is down some 75% from a year ago. transaction revenue tumbled. trading volumes were down actually 23%. and they have been losing market share. you had the after hours stock up, down, all around. a lot of volatility.

there's also been a lot of discussion on the conference call about how the coming year will be all about scrutiny and regulatory focus. the stocks over the year really took a beating in 2022 -- the stock over the year really took a beating in 2022. it's come back early in 2023. one of the things that may be giving investors some optimism, at one point, we did see shares of 3% in extended trading, is the view they are diversifying their revenue streams. for instance, they are doing a number of things around subscriptions and services. that income is up some 33% year-over-year. >> what about the outlook when it comes to regulatory scrutiny? su: brian armstrong, the ceo, is saying there strategy of being an all-weather crypto company is starting to pay off. what he means by that is he believes that coinbase is well-positioned for this type of

environment, in other words, increased regulatory scrutiny. he believes regulation benefits the firm. they put controls in place in anticipation of going -- growing clarity in the crypto regulation space. look at the chart year to date. you have seen shares come back in a big way, in correlation with the return in bitcoin's value, up some 50% year to date. >> bloomberg's su keenan. coming up, we get more interviews from the goldman sachs global macro conference in hong kong, including jose manuel barroso. plus, coronado global resources joins us to talk through earnings. ♪ go. go brain. no, not that one. go this one. go optimizing data.

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>> this is daybreak asia and we

are counting down to the major market opens as we see more reaction from the markets, we had fears during the new york session when it came to geopolitical tensions and of course treasury yields. and today we have the rbnz to contend with as well. >> this is really kicking off the next round of central bank action. -- despite dialing back to 50 basis points and how do the recent not full disasters play into that -- recent natural disasters play into that. >> we are watching the jgb yields as well because we have seen the tenure yield -- two point 505%, a lot to do with --. 505 percent.

a second session of lushes as the japanese yen is unchanged -- >> look at how korea is coming online as well. two sessions of gains as well but we are seeing a downside for the kospi of more than 1%. we have seen the korean won -- yuan under pressure. the preliminary trade data in south korea really showing the further decline in exports. the average daily shipment dropping 15% and at the first 20 days of february and we are headed towards of bok rate decision. haidi: it is still centered

around central-bank decisions and we do have the rbnz decision that charmian -- rbn's decision. but of course if we get guidance on of the hawkish side we could actually see kiwi stocks intentionally seeing some correction. in australia we are seeing downside of about .7 percent. given what has been really a muted response to the numbers out of bhp. take a look at some of the movers, santos, one of the big winners of the day still not a huge amount of upside. 2.9% higher despite profit more than doubling. the war in ukraine of course causing the supply side shock. santos is also to return $1.5

billion in buybacks and dividends. also much more muted some disappointments in their numbers up by about .1%. when it comes to the resilience and the state of the consumer in the household here in australia, finally coronado, this is the -- down by 5% despite some very strong numbers in anticipation -- shery: president putin is coming back from russia's last nuclear pack with the u.s. as he vows to press on with the invasion of ukraine. putin said russia is fighting for its historic lands in ukraine. the leader said russia will continue to observe limits on

weapons until it expires and another decision to dispense can be reversible. >> they are to blame for unleashing the war and we our -- we are doing our best to stop the war. shery: president biden has hit back at putin saying he can never win his war in ukraine. in a speech marking almost one year since the invasion biden warned there will be hard and bitter days ahead. >> a dictator rebuilding an empire will never be able to ease the people's a love of liberty. brutality will never ground -- grind down the will of the free. ukraine will never be a victory for russia. shery: the u.k. government has as much as $36 billion for short-term giveaways in a next month's budget.

borrowing over the fiscal year that's began last april is running well below the official forecast. the treasury received $6.6 billion more revenue than it spent in january alone thanks to income tax revenue and lower debt service in costs. a winter storm is sweeping across the northern u.s. with bitter cold set to stretch from the coast to the midwest. in california storm warnings extend to the mexico border. the worst hit will be the city of minneapolis where up to 23 inches of snow may fall by thursday. those were your first word headlines. haidi: let's look at treasuries as we get into the open. future is holding tech line's and at the early part of asia training. -- holding the lines at the

early part of asia training. we are also seeing bonds across the rest of the region dropping as well, he reebonz dropping, -- kiwi bonds dropping. we are seeing the potential for key benchmark treasury yields to hit highs for the year as the sentiment over the fed continues to intensify. we will get back to the conference where annabelle is standing by with our next guest. annabelle: we are looking at the repricing where the fed and the central banks will end up but let's discuss how that has implications for the equity base as well and bring in the strategist. we just spoke about the news but generally when you can get 5%

risk-free at the moment what does that tell you about the outlook? >> it is not overall particularly attractive and it is confusing in some ways because we have been pretty optimistic about the economic outlook long expecting the u.s. to avoid recession. we don't have recessions even forecast in europe. but i would say two things. first of all equity markets are really pricing that outcome now. we don't think -- and secondly as you say you are getting quite a high return in competing assets with much less risk. the biggest market in the world we are looking at a flat return. we have been preferring not u.s. markets for quite some time but the absolute returns we think will be relatively modest. annabelle: modest returns overall, where are you looking

to get the most from? x firstly if you take all of the regions globally we have the highest return forecast in asia. secondly, i think you really need to look within and beneath the equity index level to find better relative opportunities. that has been a story already for much of the last year where we found for the first time in more than a decade valuation really mattered. cheaper things outperformed generally more expensive things were outperforming. so we like pockets of value in europe where i cover in particular we have had a strong preference for banks which have been a disastrous performing area for more than a decade and over the last year have performed well. we like energy and commodity related sectors as well and we

balance that with a preference for a stable margin businesses across the industries. annabelle: when you talk about europe outperforming the u.s. what do you see driving that? >> a couple of things. first of all valuation. the u.s. market remains quite expensive treading over 18 times. that is quite a bit above its longer run average. most other equity markets trade below longer run averages and that is true in europe as well. we still think there is a lot of upside partly because it is very cheap and partly also because it has more exposure to the things that no one really wanted in the last decade which was dominated by large cap tech but it does have exposure to these things that have fundamental earnings growth, banks, health court --

health care. annabelle: is it right to look at it in those terms or how should people be approaching value? >> that is a good question because there is a tendency to look at everything in a very binary way and that is the approach many people have taken since the financial crisis because there was such an extreme difference between the growth factor and the value factor. as that is reversed, it is almost as people believe you could see the same trends end of opposite direction. i think it will be more eclectic. we think as interest rate expectations continue to rise or at least people start to question how long rates are going to stay at these high levels, that will tend to benefit the market but mean that cheap things have less to fall if there is a correction. we like to balance that.

where you have more stable margins that is what really the market is paying for so things like health care would fit into that. if you look at europe, the biggest granola was have become very large in the index. 25% of the 600 biggest companies and a similar way fact big tech stocks became very large in the u.s.. the difference is that these super large european countries are still seeing stable and higher margins and that is maintaining their traction. annabelle: the bullishness doesn't stand in contrast to bank of america, j.p. morgan, you -- are you concerned about that rates and optimism we are seeing leads the ecb to be more hawkish and has a tightening

effect in return? >> there are risks in europe certainly. one of them is that inflation remains stickier for longer than perhaps it does in the u.s. and the ecb has more work to do. it started raising rates later in the pace of increases were more modest so i think there is a risk there. there is also a risk that the factor that trigger concerns about recession last year could reassert themselves potentially coming out of the winter as governments need to rebuild their energy stocks at a time when china is recovering and demand is stronger there. there are still vulnerabilities. it isn't really europe that is going to be the main driver for european companies. very few are domestically driven. these markets are very global in terms of revenue exposure and they will do better in a world

with improved growth prospects and will book rove and trade -- and global growth and trade. annabelle: and of the reasons the u.k. has done so well but i am interested because when you talk about gas and generally the resilience of european economy this week we are going into the second year of the war in ukraine and the rhetoric has been standing up for prolonged conflict. do you think that geopolitical risk has been dashed -- >> if you can get 5% with no risk and no volatility and there are potentially greater risks, it is not just about growth margins, also the risk premium related to geopolitical events. i think it is low at the moment.

this is one of the challenges that investors globally are facing as we look forward. there is not very much baked into most financial assets. and i think this is a very different environment to the one we have seen in much of the last 20 years. and there were obvious exceptions but generally geopolitical risks moderated in an environment which was dominated by globalization. those dynamics are being tested and questions should mean a higher longer-term return when you are investing in volatile assets like equities. anable: thank you very much for your time this morning. that was goldman sachs global

chief executive there. we will have more coming up later this hour hearing from the foreign european commission president and further ahead the head of commodities research, jeff paris. -- jeff curry. >> president biden's has a vladimir putin can never win his war in ukraine in a speech marking one year from the start of the invasion. this is bloomberg. ♪

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>> president biden has used a speech to warn president putin can never when his war in ukraine. a reporter is in warsaw. >> president biden gave an historic speech saying ukraine will never be a victory for russia. >> a dictator bent on rebuilding an empire on never be able to ease the people's love of liberty. totality will never grind down the will of the free, and ukraine will never be a victory for russia. >> president biden's speech

comes hours after president putin spoke in moscow vowing to continue his invasion of ukraine saying he is going after these historic lands. president biden was committed to keep the funding going to ukraine and as well as the commitment what he calls an ironclad commitment to article five and to the nato alliance. on wednesday president biden will continue the conversation. he is sitting down with the member alliance on the eastern -- nato alliance on the eastern flank. he talked about more penalties and sanctions against russia coming later in the week. >> the wall street journal was reporting that the chinese president is preparing to visit moscow or a summit with vladimir putin. super interesting given the developments apparently in this relationship and the way beijing

has been positioning itself as a potential piece of broker. what do we know and what could be expect from the meeting? john: we note this meeting has been talked about for a few months now. president putin and president xi jinping had a phone call and during the call president putin said he looks forward to seeing xi jinping visit in the spring. we have not had a public acknowledgment of that's being planned by the chinese side. with that report from the journal today it does look like that is being considered and plans. we also know that china's top diplomat was justin moscow and met with president putin. >> what western allies welcome beijing's new role as a peace broker?

john: i think it will be a difficult challenge because while china has tried to portray itself as a neutral player, it has at the same time continued to support russia in several important ways. rhetorically for example. so selling itself as a neutral player will be difficult especially in europe but i think it will be determined by the details of the peace proposal. if it is to pro-russia it will get rejected. >> china senior executive editor , john there. thank you. when it comes to monetary policy we are watching new zealand's. the reserve bank of new zealand expected to raise its key rate for the 10th street meeting even as devastation from cyclone

gabrielle hangs over the economy. a downshift expected but still inflation high. >> we don't know what will set the tone. we know the fed has downshifted and maybe they are having second thoughts so we see one of the remaining hawkish central bank standing, we are going to watch this very closely when we get the decision an hour or two from now. a 50 basis point hike is expected. that would be down from 75 in november and there is very hawkish signaling in november as well. rbn said seeing a peak of 5.50 and eagerness to get there and what would make them get their and be ready to cool off rate hikes is a cooling off in inflation. inflation has steadied at a very height rates. expected to peak in the fourth

quarter of the year at 7.5. it seems to have leveled off at 7.2. they would like to see a get down to 2%. this is still far too high and while they are ready to downshift to 50 potentially, partly because of inflation looking better, but also there is this uncertainty over the cost of rebuilding so much of new zealand after the cyclone and certainly without will mean for the economy and inflation. >> we know that the impact is likely to be inflationary in terms of rage building and reconstruction. kathleen: it is so hard to gauge what the inflation will be but it is so important how the government has reacted. they have given the rbnz more or less permission to do your job and do what you have to do to

fight inflation. the update earlier this week, they said they are repairing the damage infrastructure could take years. they are assessing the cost of rebuilding and recovering. additional demand will add to inflation pressure. cyclone gabrielle could result in of the reserve bank keeping interest rates higher for longer than otherwise, displacing some activity that otherwise would have occurred. the finance minister saying that he knows they can look through and look past the impact of the cyclone to that responsibility to deal with inflation. i think that is unusual and we can pat them on the back for being supportive of the central bank at a time when they are in a tough position. they know they have to bring down inflation and the cyclone making it all the more difficult on some levels. >> kathleen hays, central bank

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the kospi reversing the gains we saw earlier. the one we are watching today, rate decision from the rbnz a downshift expected. kiwi stocks down. all in for a fourth consecutive session. utilities one of the few gainers today which is also down 7/10 of 1%. one of the big losers there, coronado. this is a coal play the australian market. forecasting that sale of coal will be as much as -- we will be speaking to the cfo coming up on the show.

>> some more data when it comes to australia, the wage price index rising 3.3%, slightly

lower than estimates of 3.5%. we are also getting the increase of .8 percent. also slightly weaker than the 1% previously seen. potentially when it comes to wage price inflation we are starting to see a little bit of softening on that front. also getting construction data through as well. seeing a fall of .4%. slightly better than expectations -- i should say expectations were for a gain of 1.i've percent so we are -- 1.5% so clearly we are still seeing that weakness. >> we are washing geopolitics affecting markets. the wall street journal signing anonymous sort is -- citing anonymous sources that the meeting may happen in april. chinese media say they discussed

ukraine on tuesday with a senior russian security official. hong kong is set to unveil its budget on wednesday balancing the need for incentives to revive the city's international image while keeping spending under control. most expect a return to fiscal surplus, with a balanced budget as the top priority. most also expect new measures to attract global talent, such as targeted tax exemptions. thailand will ban the import of plastic waste from 20.5 in a bid to cut pollution. plastic that enters recycling programs in western countries is often shipped to poorer nations. restrictions will begin this year with only select manufacturers allowed to process the scraps. mckenzie is said to be cutting 2000 jobs in one of its biggest

rounds ever. the move will affect support staff and rules that do not have direct contact with clients. it aims to preserve connotation for the firm's partners. -- connection for the firm's partners. >> we are watching the big gainer, santos at a much session highs of over 4%. really extending that rally after we saw more than doubling on the energy crunch, one of the biggest beneficiaries. we are seeing some downside though after earnings disappointed out of oz minerals as well as coronado, despite some pretty impressive numbers. let's get some more on that, net

income could almost quadruple. as china uses the ban on australian coal shipments, they are positive on the outlook. great to have you with us. these are pretty solid numbers and perhaps better yet to come with the resumption of shipments to china. of you sold any cargoes to china yet after the lifting of the ban? guest: good morning. i think it is a pretty positive message out of china. we have continued -- u.s. operations into china and we have responded to some requests out of china after they lifted the unofficial man in general. china just -- unofficial ban in general. the demand is quite soft at the

moment but we could see it is ramping up particularly as china has seen the lowest mets court stocks, 34% lower than last year at this time. also because china has -- gdp growth in the year. about one third of china's gdp comes out of property. both very steel heavy. >> does that make you more bullish when it comes to the need for more capacity? guest: we look at all coming onto the market. some are disposing of products, steelmaking, call -- coal.

bhp has already done -- lester. 10 million tons of coal and all are coming online so there are a few other assets in the market as well. we have a good eye on all of these. >> the mines are lower quality coal so how would that affect your decision? guest: it is not low-quality, lower than probably the premium that they have in the rest of their portfolio. bhp has by far the best products in the market. and a pretty good market presence but it is still high quality coal. it is not only what is coming onto the market from bhp but also other assets. the bhp assets compete with

assets that we find in north america and elsewhere. >> you are taking a look as well as -- what scale are you looking to deploy? guest: we finished the year with a pretty strong balance sheet. our flexibility is pretty large comes to acquiring assets plus you can take on partners as well if you wanted to. >> before we let you go he also identified india as a strong driver of growth for your company. what proportion of sales currently go to india? guest: india it would be one of our largest exports destinations, probably 20% there. very strong. our largest customer sits in india and india will experience

over the next 30 years the biggest growth in steel products so we are quite excited about it. this year alone the india steel market is growing age percent. gdp 6%. -- still market is growing 8%. gdp 6%. >> we appreciate your time today. we will report for your results after the close and australia today. -- for your results after the close and australia today. as a going to be more of the same themes? >> one would think so given the macroenvironment. expectations are being firmly manage. about $14 billion.

goldman sachs is expecting less than that. also, we have had the -- pretty weaken compared to last year but it has been below $100 a ton for most of that period of time. there is going to be definitely an impact there. cost pressures is something bhp was talking about particularly around diesel. the same problems around china demand as well although as bhp said it is seeing some green shoots around that. rio tinto has been doing pretty well though. that has outperformed the broader -- even though the dividend is expected to get a bit smaller, it is still pretty healthy.

>> paul allen there with the latest from sydney. we do have an exclusive conversation later. he joins us later at the times on your screen. >> let's take a look at australian bonds. we continue to see the downside for treasuries, the slump on tuesday when it comes to regional bonds across australia and new zealand as we get into the rbn decision. all of this really being enveloped by concerns about fed rate hike bets and we will see an environment of higher rates for longer as well as expectations that we can see treasury yields hitting near highs for the year as the sentiment obnoxious the fed but potentially other develop -- for

not just the fed but potentially others as well. jose manuel barroso joining us and we get his assessment of how long he thinks geopolitical frictions could last. this is bloomberg. ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh

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>> let's take a look at the start of trading in futures in europe at the moment. this really following the downside of a muted session in asia at the moment falling on the back of some declines in the u.s. session. traders are preoccupied by earnings season looking at a slew of earnings as well as data considering hawkish path of monetary policy as well. tech, real estate all seeing some lag. >> given of course the search in a treasury yields we have seen, new highs for 2023. let's get back to the conference in hong kong for a view of where we stand globally. annabelle is standing by.

annabelle: thanks, at the goldman sachs global macro conference. the other part comes down to geopolitics because the war in ukraine entering its second year this week and i want to discuss that now with the former president. just continuing to spill across borders, how do you see at playing out? is there any sort of solution on the horizon? >> i don't see a solution in short-term or even admitted -- or even medium-term. i don't see a possible reconciliation between russia and ukraine. this has very deep on the quinces for europe and the world. we are at the very beginning --

this has very deep consequences for europe and the world. >> one of the more interesting headlines is that china could be setting up to offer some peace proposal. do you see any credibility in that? >> that is a problem and a matter of concern for europe. the perceptions, and the reality is today people seat russia and china very close. so we are in fact, seeing some kind of geopolitical friction, some possible decoupling and this i believe is extremely a big challenge for all of us. and this is i think profound consequences i believe for the level of uncertainty from an economic point of view. >> you talk about decoupling and

there is also simply red lines that can also be crossed and one of them could be that the u.s. has intelligence that beijing is considering providing weapons to moscow. >> that will be a major development with i think profound consequences because until now, the language of beijing has been aligned with moscow. there has not been military support and even in terms of votes in the united nations, the reality is beijing has never -- for instant. if there are further developments and escalation, this is very very worrying that is why some people speak about the new cold war. we are seeing a strong, strong friction from a geopolitical point of view and that is changing the global scenario.

>> when you talk about friction a lot of it comes down to the language being used as well. you are in quite a unique position to have met both president biden and president putin. what would you say about them personally? >> very different personalities. putin i met many times. at that time we had a twice a your summits with russia. putin is infecting a dialogue like we are now speaking. he can be a pleasant person but when he is in his role, he can be ruthless. and we had many frictions during this time and even before the invasion of crimea. we had many problems and issues on energy. president biden i knew when he was vice president. he is a very nice person and

likable person. he is very communicative and proud of his heritage. it is a completely different kind of personality, yes. >> if president putin is someone you do not see having the personality to back down, what would force a capitulation if the russian economy has been so far very resilient? >> i don't see from what i know from putin, i don't see him accepting defeat. for him this is existential. it is a matter of life and death for him because he has put all his political capital if i may say so in the war. putin i remember was a rational person in terms of making calculations about cost and benefit in terms of risk. so i was expecting him to --

ukraine. never accept ukraine as a country. one day he told me why are you defending ukraine? you know that ukraine was created by the cia. i told him if it was the european commission i should have known. for him psychologically it is difficult to accept independent and sovereign ukraine. i am afraid that it will be settled on the ground in terms of military. that is why the issue of war is so important. who is going to make more points on the ground. >> when we talk about the conflict so much of the conversation talks about countries that are not ukraine itself. but what is the future for ukraine from a military standpoint? is it a nato ally?

or membership? >> i don't think that is likely in the foreseeable future but in fact ukraine is coming closer to europe and a western alliance clearly and it is remarkable. they have shown great courage and they are becoming closer to europe because they want to show they are independent. for the foreseeable future it seems to me difficult to have ukraine as a member of nato but there is some talk about possible security guarantees to ukraine. if some type of deal, even if it is temporary agreement, it may be related to some security guarantee's. >> thank you very much for your time this morning. a lot more from the conference ahead including a conversation in just a few hours time with jeff currie. >> coming up next, a battle

growing in china's tech scene. we take a closer look at tech stocks ahead of china's market open. this is bloomberg. ♪

>> the easing of beijing's

regulatory crackdown has spurred new competition along tech giants. sophia, we saw china's -- plunging today. investors not liking the potential of a price war here. >> what has happened in the past 2-3 years is really a cost-cutting exercise. when you see the likes of jd.com announcing -- that does not really do much for margins and this is when earnings seasons only starting now and this is when we get an an indication of when companies can be profitable again. this was the reasons why investors likely stopped so this doesn't marry with the increasingly positive narrative we were seeing this. they were saying they were going to go into the cheaper segment. city analysts saying the market

has overreacted and this is actually a good buying opportunity for the stock. >> what do we see in terms of the outlook and the risks? china has always been a potential risk. >> exactly and this week, watch what the ceos say. we have baidu reporting today and alibaba tomorrow so really the outlook for the growth story in that sector will be really key. the fact that these companies have confidence to do aggressive campaigns to take market share from each other, that really shows that at least there is some kind of shift when it comes to the confidence that these companies have over the long-term growth outlook but they need to convey the message that profit margins are still a priority because that's what shareholders want to hear. how other the companies grow in the future and where will they

get the profit margin expansion and really return money to shareholders. that hasn't happened in 2-3 years. >> of course we continue to count down to the rate decision share and it is a complicated environment for them to be holding this meeting and making the decision. the governor has been pretty straightforward when it comes to his stance that inflation remains too high but they are dealing with the aftermath of the incredibly devastating storms and cyclone gabrielle. whether they take their foot off the pedal while reconstruction happens, that could really be inflationary. it is a really hard time to make that decision. >> we -- reconstruction could lead to more inflationary pressures. we were talking to the chief

economist and she was talking about how the rebuilding costs more than $10 billion, after that earthquake showed that the cyclone could also be inflationary. so really a lot to contend with and something we will be watching closely. still to come, we will be back at the global macro conference where they will tackle government borrowing as china's government recovers. this is bloomberg. ♪

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yvonne: