>> you are watching daybreak: asia live from new york, sydney, and hong kong.

annabelle: counting down to market opens in tokyo and seoul. haidi: asian shares set to fall as investors ratchet up forecast for fed hike a selloff in u.s. listed chinese stocks continuing to add to selling pressure. global finance chiefs failed to agree on a statement over russia's war in ukraine. we hear from the imf managing director and the bank of korea chief. warren budget -- buffett urges investors to keep faith as berkshire hathaway reports weaker results across some key businesses. shery: the open of asx 200 at the start of the day risk off. treasury yields high. the aussie markets will be hit by a double whammy today. friday you had a preferred inflation gauge for the fed hotter than expected telling us policymakers will need to keep rates higher for longer. some economists guiding for the peak rate to top 6.5%.

likewise, australia. we are starting to see higher odds for recession on the horizon. our latest bloomberg's survey says chances are now one in three up from one in four a few months ago. the terminal chart puts in perspective what has been happening in australia versus the u.s.. you can see the inflation -- recession probability line in glue has recently taper down in the u.s.. we have started to see the inflation pace lose a little staying in the u.s. even though we did see the preferred inflation reading friday. we have some disinflation coming into the market. on the flipside, in australia, recession odds are starting to increase. at the same time that we saw monetary stimulus starting later than the fed. still, a big concern as the rba signals more hearts are still to come. shery: quite a shift.

we thought australia was perhaps relayed this attached -- detached from global supply chain disruption and now we are seeing u.s. resilience stronger than expected. pce data, surprising to the upside. u.s. consumer sentiment rising to the highest level in the year or so. so, right now, u.s. futures coming online pretty muted. not a lot of change now in the asian session. when it came to the new york session we had the s&p 500 seeing its worst week in 2023. tech is leading the deadline. the nasdaq 100 lost about 2% or so. rising yields. repricing of where the fed will go from here. we had more hawkish fed speak this week whether it was loretta mester, jim bullard, susan coleman. the pce numbers, the dollar surging to the highest in a year or so. all of this reflected across markets. oil prices now, a little gain in

the asian session. it has been muted training for oil as well. range bound around $10 the entire year coming at a time when the rebound in demand coming from china has not really lived up to expectations. haidi: yeah, well, shery we continue to follow geopolitical headlines. top finance chiefs failed to agree to a consensus statement at the g20 meeting with russia and china disagreeing over language used in russia's were in ukraine. let's bring in tony czuczka and our china editor john liu. it seems like there is an impossibility to find a consensus at these gatherings. at the un security council they cannot even agree to a moment of silence. it is perhaps not surprising they cannot make headway on the drafting of this communique. tony: no. it is what you would expect at

this point. it was actually russia and china which turned away from language that was apparently still ok last fall when the g20 leaders met. that prevented india, the host of this meeting of finance chiefs, from coming up, presenting a joint statement that everybody agreed to. germany's finance minister specifically called out china's stance as being very regrettable. you get a taste of the tension hear from russian foreign ministry. a statement came out afterwards basically saying this, that the west, and especially the u.s., is, trying to use these kinds of forums to unacceptably pin the blame for global problems on russia. so, that is kind of the geopolitics, the mood underlying

this g20 meeting. shery: one issue there was progress on was debt. really being elevated in the priority list for the g20. tony: yes. yes, and in another way no, perhaps. there was a lot of rhetoric among the big international institutions, the world bank, and especially the imf on the desirability moving forward on resolving the debt issue, suspecting especially developing countries as interest rates have gone up. at the same time, there was this similar sort of thing played out, as with the war in ukraine. in this case on the question of

restructuring because china has been trying get -- to get the international institutions to join in any haircuts or debt restructuring for some of these countries. of course, that is something that the institutions are opposed to. yes, there was a lot of talk about it. of course, it is very much on the agenda. zambia is the first african country to fault -- to default. but really, the nitty-gritty progress remains to be seen after this meeting. and, then again, it is something you cannot except to -- expect to resolve in one meeting with g20 finance chiefs. haidi: john, when it comes to china there has been a missing catalyst for the next leg up above been some for investors when it comes to reopening and the recovery story.

are we expecting more progrowth policies out of the party congress? john: well, we have a plenum meeting at the moment that we expect to end later this week, tuesday. we might get some more news out of that about restructuring government agencies, how the party is set up. looking forward into march, we have the national people's congress coming up and we are expecting to get a gdp target at the opening of that, march 5. if it is a relatively high target, we are expecting around 5% has been the number of people -- 5% has been the number people talked about. that suggests more progrowth policies out of beijing. that would be welcomed by markets. i think there will be a lot of attention paid to what the government has to say about scrutiny of big tech as well as the property market. what the government would do to support that. shery: we have china's pmi's coming out the speak -- this

week. what are we seeing on the economic front? we think helps we are seeing more stimulus. how that is the situation on the ground? john: we have had a fairly good number -- fairly good numbers in the first part of 2023 thanks largely to the reopening story. china is opening its borders. people are going back to work, back-to-school. restrictions because of covid zero have been largely lifted. so, we have seen a pickup not only in consumption and production, but, overall, i think the general sentiment here has improved. it is not back to where we were preventing. -- pre-pandemic. there is a question of how quickly or even if we will get back to the 2019 levels we had. haidi: john, when it comes to the broader consensus on the chinese economy there have been

some worries as to what the next regulatory target will be area is -- will be. it's the policy uncertainty still something that at any given time is of the underlying current of worry for investors. john: the last couple years i think many investors had this experience of opaque policymaking in beijing. and, changes in direction. changes in terms of great or less regulatory certainty. that is sort of coming out of nowhere and taking markets by surprise. and, many, many investors are losing money as a result of that. remember back a couple years ago with common prosperity, the action taken against the private tutoring companies causing massive amounts of losses across the board. now, people, thinking about coming back into china, that still remains on their minds. there is that this question of how reliable is the policymaking, the communication people are getting out of beijing and how reliable is the

turn to focusing on economic growth one to be? haidi: john liu and tony czuczka with the top stories today. let's get vonnie quinn. vonnie: china renaissance holdings as its chairman is assisting chinese authorities in an unspecified investigation, the first public information about the banker's whereabouts since he disappeared more than one week ago. his abrupt disappearance unnerved china's business elite and sparked a speculation the nation's finance minister rate will face increased scrutiny. bloomberg has been told the u.s. held talks this month with three asian partners on the global semiconductor supply chain. a taiwanese official says the february 16 video conference of the so-called chip four group discussed an early warning system to ensure steady supplies. we were told the parties held off on discussions concerning export controls and no company was involved in the meeting.

the u.k. and eu are preparing to unveil a proposed brexit settlement on northern ireland. it will be announced after a monday meeting between prime minister rishi sunak and european mission president ursula von der leyen seeking to soften trade and regulatory value in governing northern ireland's unique place in the u.k. and eu trading markets. australian treasury jim chanos plans to deliver a responsible budget in may to avoid inflation. he told bloomberg television the government tends to follow the same cautious approach taken with its first fiscal plan in october when it opted to put most commodities when fall back into the budget rather than funding spending programs. >> we cannot be complacent about the inflation challenge. just because the inflation peak is behind us rather than ahead of us, it is still the defining challenge in the global economy, still the defining challenge in the australian economy. funny: global. i am vonnie quinn. this is bloomberg. haidi: look at the energy

producer in australia, one of the stocks that could move even higher. upside about 1.6% trading at the moment, posting record profit to join what has been an energy sector bonanza so far this earnings season. woodside is australia's largest lng producer getting a left tire from asian lng with broader crude prices and a boost with numbers from the completed merger with bhp, bhp petroleum, back in june. this is the highest ever profit for woodside on these record prices. and, that acquisition more than tripling the underlying profit after tax to 5.2 billion dollars in 2022. will surging prices continue and can woodside repeat this going forward? we ask the woodside ceo meg o'neill later.

i speak to her about the record result and the outlook for energy prices at 4:10 sydney time, 10: tolan -- 10:10 hong kong. shery: coming up, a conversation with japanese crypto exchange bit flyer. and, a view on asian equity markets. this is bloomberg.

♪ >> it is now heading the wrong way. market indicators started heading the wrong way, the breakevens. now we have seen actual survey indicators heading the wrong way. i think the market and more courtly people in the street are starting to doubt whether the fed can deliver the 2%. haidi: bloomberg opinion

columnist mohamed el-erian on the fed fight against inflation. a busy week ahead. monday china's plenum continues counting down to the national people's congress beginning sunday, the top legislative bodies first post-pandemic gathering with president she sent to begin his term. the adani group in asia seeks to repair damage caused by the hindenburg research report. we will get fresh growth data from india as well as australia. economists expect indonesia inflation to have picked up in january. china's pmi data due wednesday is said to provide insight on recovery from go in zero. back in the u.s. economists expect jobless claims to rise in february and we will get growth data out of macau. the gambling hub is now easing its masking policy as it looks to a post-pandemic recovery. haidi: daniel lam is the -- we

appeared to have a marker repressing expectations with global inflation. with recent readings out of the u.s. it seems the fed will be higher for longer. in australia we are on that trajectory as well. given the repricing where you see opportunities? daniel: right now risky assets are somewhat under pressure because of the repricing. of course, there is geopolitical risk that is affecting the performance of the chinese market. therefore, the asian and japan markets. if we look at the six to 12 month, medium to longer term perspective, so to speak, the china market and the asia and japan equities still the removal of the zero covid policy and also the backstop in the

property sector are powerful factors. at this moment in time market has gotten ahead of itself a little too much. haidi: what about your feeling with chinese equities? there are expectations we might get more stimulus measures or progrowth lessees, especially following the party congress. we are already seeing that in trading onshore and offshore chinese equities. you see opportunities there for the next leg of the rally? daniel: in terms of offshore equities, because it is more acceptable to say, global factors, so to speak, you may see the heisei index for example correcting to 19,600. that is the first stop where we believe the heisei index to get support. it could get to 18,500, the next level.

depending on the latest round of geopolitical risk and how long that lingers. the consumption, the results in general they have been reasonable. but, they have been, you know, sold off nonetheless. because, like i said, they have run too fast already. so, in selective statistics we see opportunities around perhaps like 10% down from here. that would be the mainstay we are focusing upon in terms of consumption from china. shery: we also saw a sort of reset when it comes to bond market. you have hope we will have a rebound in that space this year? daniel: well, right now if you look at, say, the u.s. 10 year yield. it is nearly 4%. we could see that overshooting to 4.2%. of course,1 looking at how the economy does in the u.s., of course, right now is, you know,

the data is surprisingly to the upside, right? leading to a potential repricing from the fed. then one has to put it in perspective. because, eventually, this kind of rate hike is likely to slow growth sectors. gross numbers. -- growth numbers. so, if it does have any kind of overshoot, the u.s. 10 year ago step 4.2% or 4.5% it could be a good opportunity for investors to put in positions on high-quality assets. so, we can embrace this as an opportunity. investors just have to it into the positions in stages. haidi: does that put you in that the u.s. dollar camp as well? if you expect weakening of the u.s. dollar what are other opportunities on the other side of the trade? daniel: from a 6-12 month horizon we believe the u.s.

dollar is likely to weekend. we have seen it can intentionally go to levels of around 100-101. looking at the other currencies, we believe that the dollar yen will probably go to 127 in the 6-12 month horizon and the euro to around 1.13 levels. haidi: and another boj policy hearing today will give us more clarity on where the new governor could go. daniel lam, good to have you with us head of equity strategies at charter wealth management. more to come. this is bloomberg.

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hours long slow down, the latest in a series of technical issues that have plagued solana since its debut in 2020. asia's bc is looking for a new global headquarters last that 50% of its current space in london's can oil wharf. -- canary wharf. it is considering office of between 400000 and 500,000 square feet. hsbc has been reviewing workplace needs when its current lease ends in 2027. asteria's biggest lng producer woodside energy reported its highest ever profit. net profit tripled to 5.2 billion dollars in the 2022 financial year following the acquisition of bhp's oil and gas business last june read woodside will pay a final dividend of one

dollar 24 per share bringing the full-year dividend to $2.53. shery: berkshire hathaway reporting mixed results underscoring fears the u.s. economy faces a bumpy road. su keenan the latest. some key business us all week demand. su: railroads and insurance saw week demand and slipped in earnings supporting concerns 2023 will really be rough for many companies. it also took a little wind out of the big victory the conglomerate reported record operating earnings of $30.8 billion for the year. that said, the billionaire's annual letter to berkshire hathaway shareholders released along its full-year earnings resorts -- results over the weekend was mostly optimistic, reminding investors to keep faith in america's economy. for weakness in the conglomerate

saw 14% decline in operating earnings in the fourth quarter. it cited higher materials cost, freight cost, labor cost. the warren buffett said, i have yet to see a time when it made sense to make a long-term bet against america. buffett took issue in his shareholder letter with recent criticism on share buybacks after the biden administration proposed recently that we should quadruple the levy on corporate share buybacks. buffett wrote "when you are told all repurchases are harmful to shareholders and the country and benefit ceos, you are either listening to an economic illiterate or a silver tongued demagogue." very strong feelings. berkshire increased buybacks in the fourth quarter spending about $2.6 billion repurchasing its own stock for a full year total of $7.9 billion. it amassed a huge stockpile, 120 $8 billion of cash on hand as of

the end of the year. -- $128 billion of cash as of the end of this year. slashing a position in tsmc by about 86%. it did not address that in the shareholder letter. some analysts say it is likely they will address it at the shareholder meeting in may. haidi: su keenan with the latest on berkshire. next, our exclusive interview with the bank of korea governor who tells us they are open to further rate rises after hitting pause last week. this is bloomberg.

annabelle: i am annabelle droulers with a check on markets as we had to another trading week. the tone is looking quite risk off as we head on. what is driving that is the inflation reading out in the u.s. friday, the pca -- pce deflator at 5.4 percent and acceleration hotter than expected. it tells us the fed will need to keep rates higher for longer. treasury bond futures are still moving a little. we saw the yield on the two-year hitting its highest since 2007. likewise, we are seeing moves higher for bond yields in their dividends in line with what we had in treasuries. this sets us up for risk off trading in equities. 30 minutes into the session the asx 200 down by nearly 1%. u.s. futures just turned fractionally negative. japan guide and a weaker start. now what we are seeing, losses in more rate sensitive sectors. in australia, materials and i.t. get speaking of id, because at is really market in the korean

stock space as well, we saw foreigners leaving the market for the first time since 2023. that was with and acceleration of $513 million of outflows. some are saying perhaps this could start to come back in. that, there are a lot of questions around not just the outlook for the fed, but also, the be ok. shery: in fact, now, the governor of the bank of korea says the central bank is open into resuming policy tightening until -- that they kept interest rates unchanged for the first time in a year. he spoke to bloomberg on the sidelines of the g20 meeting in bengal around. >> we are actually mentioning our view only on a three months timeframe rolling basis. so, the next three months. one out of six reports, one member said it is better to stay

at 3.5 at this moment and the other five said to have an option to increase 3.75 in the next few months. this does not necessarily mean any change. there has been no change after those three months. >> the president has been asking commercial buyers to cut rates to make it easier for consumers. this seems to be in contrast to what you are trying to do, rain and inflation. -- rain in inflation. is there a contradiction there? >> i get this question several times but you can interpret it two ways. what is there is this issue. whether korea's banking sector dominated by five major banks, whether the interest rate increase is affecting fair competition is one issue. the other issue is now that interest rates lending and

deposit monitoring is going down if you compare it with january, that is why people say, is it consistent or inconsistent with monetary policy? the main reason why the interest rate was so high at the end of december is because we have a short-term liquidity constrained caused by project financing issues causing market rates to really jump in december. now it seems to be normalized. i think it is really natural for us to see the market rate going down. still, the market rate is well over the previous range. compare it with the pre-pandemic level. the spread between the market-rate and our policy rate is similar, or even slightly higher. haidi: the bank of korea governor there speaking to bloomberg's haslinda amin. let's get vonnie quinn. vonnie: the world top finance jews failed to agree on a consensus statement at --

finance chiefs failed to agree to a consists met -- consisted they met. russia and china disagreed with two paragraphs on the war that had been cleared by our participants in november. the group agreed that global economic outlook remains uncertain. australia's energy minister chris bowen rolled out a ban on new coal mines saying it is not part of the current climate agenda. his government was elected on a plan to end the country's climate wars. bowen defended the use of controversial carbon offsets saying they are essential for some industries to keep operating. the european central bank says it will raise interest rates as high as necessary to bring inflation back to 2%. governing councilmember ignazio visco says odyssey will hinge on shifts in the economy with the future path set on the meeting by meeting basis. ecb policy makers raised

borrowing costs by three and a basis point since july and intend to hike by another .5 points in march. >> the first component of the secondhand effect is the wage gap with increasing inflation. then, if the sources of increasing inflation received, then, really, we should expect that prices follow, not energy prices. if they do not, then this goes for monetary policy being very attentive. vonnie: i am vonnie quinn and this is bloomberg. haidi: the international monetary fund is urging central banks to stay the course in the fight against inflation. managing director kristalina georgieva's is optimistic when it comes to china's faster than expected reopening as russia's war in ukraine casts a shadow on the global economy. >> right now, stay the course. it's not the time to debate

whether we have the right inflation target. because, that debate would swing us away from the main purpose, central banks to bring back price stability. it is important for consumers, and it is important for investors, that we return to price stability. and of course, as we make progress to see inflation, including core inflation, going in the right direction, there can be a discussion around how does the future of central bank targets look like? it's true that what we are seeing are some structural factors that are going to impact price levels. for example, moving away from cost being the only the finer of -- definer of where you place production, to also security of supply.

well, if we are to provide some backup for the security of supply, that would increase cost of production. and, that would have systemically significant impact for the level of prices. right now, we have to win the fight against inflation, restart price stability at the foundation for growth. because, if you look at where we are in terms of growth, we are not in a great place. this year growth is slowing down to 2.9%. next year, we expected to turn of the 3.1%. this is way below the three point 8% average we had before the pandemic. -- 3.8% average we had before the pandemic. even then we thought that growth level was not sufficient and productivity was not moving high enough and as a result we did not see the dynamism necessary. here in india, let's take our cue from india's very strong commitment to reforms, executing

the reforms with dignity as a result india is a bright spot with growth that is related to many others, contributing 15% of global growth this year. haslinda: ukraine is still casting a long shadow on the global economy. what is the overriding concern over ukraine in war with conversations in europe to see if it is energy prices? >> it is energy prices. it is more broadly uncertainty. when we have uncertainty, that impacts investors. impacts the ability for economists to grow. and of course, the war is terrible for the people of ukraine. i was recently in kyiv. it is remarkable how the country functions, despite the war. but, it is also so very sad to see the impact it has on ordinary people.

it is terrible for the world economy. if we have this anxiety on energy prices lingering for a long time, of course it is detrimental to confidence, and therefore, global growth. so, the sooner the war ends, the better for everyone. peace is what we should all aspire for. haslinda: talk about global growth. so much hinges on china's reopening. have you been encouraged by the pace? has china reopened at the pace you anticipated? >> it has even exceeded our expectations for the pace of reopening. i was in china december 8. it was exactly the date china started the reopening. it is amazing to see how quickly domestic consumption has been accelerated as a result. two things about china. one, we do see china returning

to stronger growth as is beneficial for china but also for asia and the world. china last year, for the first time in 40 years, was not the contributor to increasing global growth. they actually grew slower than the world economy. this year this will change. we expect 5.2% growth from china. versus, 2.94% as an average for the world. the second very important observation. so far, it is driven primarily by domestic consumption. why is this relevant? because, domestic consumption versus export means that there would be less pressure on commodity prices that otherwise there could have been. why is this important for the world? because, it would be helpful if china does not generate more

inflation as a result of higher demand for energy and commodities. so, if china states that course of domestic consumption being the main driver of growth this year, next year, it is good for rebalancing growth in china overall, and it's good in not creating a new inflation pressure that would make the job of central bankers harder. haidi: coming up next, bitflyer's cofounder yuzu kano tells us what he wants back his old job as ceo of one of japan's largest crypto exchanges. this is bloomberg. and effortlessly responds to both of you. our smart sleepers get 28 minutes more restful sleep per night.

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tim: shery: let's look how japanese assets are trading in tokyo. this is the yen. a 146 -- a 136 and a when it comes to trading dollar-yen area they -- dollar-yen. the yen has seen on the back of the strength in the bloomberg dollar, the worst months since october 2022. there was not a great deal when it comes to pass through from comments from cause or way to

with his appearance in parliament last week broadly as expected, not much of that did much to change the grade when it came to boj bets. a weaker dollar than a lot of people are potentially relying on could cause pressures on both the fed and also, of course, what we have seen for the japanese yen. when it comes to the data front, we are awaiting tokyo cpi as well as japan industrial production. it later this week, that will give us a bit more of a glimpse the types of cost pressures the new governor will be facing. haidi: bitcoin is under a little pressure. still about the 23 thousand level. the cofounder of one of japan's biggest cryptocurrency exchanges ssc wants the top job back. yuzo kano spoke with bloomberg about why he wants to reinstate himself as president and ceo of bitflyer.

yuzo: bitflyer is in a situation where the president is replaced every year. more than 50% of shareholders believe the current management team is not capable of maximizing the stock value. i opposed the idea of conducting mna and selling the company. i am a founding shareholder and i have the rights to nominate the buyer. this is stipulated in the investment contract. when i pointed out it was a breach of contract, the shareholder agreed with me and opposed the mna and the deal was broken. >> what are the structural reasons why a start up like this gets into the situation we saw last year? yuzo: in the case of unlisted companies, in japan, there is no such thing as revlon duties like in the u.s.. this is because in japan the management team must make efforts to maximize the stock

value when a merger or acquisition is made and will proceed in a very ambiguous process. you can even sell the company against a buyer's will. if we cannot prevent this kind of thing, i believe japanese startups will not flourish. >> what needs to change to prevent situations like this happening again? yuzo: first, i think japan needs something like the revlon duties like america has. management and acquirers colluding to sell companies cheaply and unfairly should be prevented. i do not think there would be any development of japanese startups in the current situation. especially, in the case of bit flyer. it is a problem that a president changes every year. i think the only solution is i myself returned to become the president of bitflyer exchange and demonstrate leadership.

>> how does the crypto market in japan have to change in the future? yuzo: japan has very strict regulations and i believe japanese customers have been protected from the ftx problem. from here on, i think it's time for japan to be a leading model in the global arena. prime minister kishida said he would promote web freedom. it japan has sufficient regulations and laws unique to japan. this came in and ie oh, and internationally recognized system of laws against stablecoin. legal preparations related to dow are currently underway and there have been discussions. i think the time welcome for japan to become the leader in the world of web free. bitflyer's business is very unique. with both an exchange and a blockchain called web free. we have presence in the u.s. and europe and we are already developing exchanges globally.

i would like to make use of these assets to create new services as bitflyer while collaborating with exchanges on blockchain. there is a blockchain called m iyabi and i would like to focus on making this kind of thing public. for the exchange to become asia's number one trading company we would like to push our presence overseas by strengthening governments together with new services. >> what does japan really need most now? yuzo: japan is said to be in the midst of a lost 30 years. i think it's necessary create -- to create a working environment where young people can play an active role. a person who makes an effort. people that produce results. people with ability. these kinds of people should be evaluated fairly. i think the system should end in japan. with bit flyer there is no

seniority system. it is an organization completely merit-based. haidi: bit flyer cofounder yuzo kano speaking there with bloomberg's reed stevenson. you can see more on tv go. dive into any securities or bloomberg functions we talk about and become part of the conversation by sending us instant messages during shows. it's for bloomberg subscribers only. check it out at tv . check it out. this is bloomberg.

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terms apply. the u.s. held talks this month with three key asian partners on the global semiconductor supply chain. the details from our east asia government editor john herskovitz. grouping is now being called chip four. the u.s., south korea, japan, and taiwan. how significant was the meeting? jon: the biden administration for months has been trying to get help in. to secure the supply lines for semiconductors. here you have three major chip manufacturers in the asian region with japan, south korea, and taiwan that are keyed to this effort. so, the meeting comes as a sign of investment for this chip four alliance sometimes called the

fab four. it's a positive for the biden administration. one thing they avoided was looking at chip curbs towards china. they focused on the role that partners can play in the supply chain. south korea and china one for manufacturing, japan for materials, and, the u.s. as the biggest market for these types of key components. haidi: how does that fit into broader plans for the biden administration securing supplies for semis? jon: any help they can get with these partners is positive for the u.s.. it is difficult for these three areas. japan, south korea, and taiwan all waste china -- risk china as their biggest trade partner and they are caught in a bit of a bind with the bided administrations push for curbs on manufacturing equipment for high-tech semiconductor

production towards china, aimed at preventing china from acquiring the expertise to really advance in the market. it is a balancing act for these players with the u.s. push for greater curves and restrictions on china and their own domestic economies that depend heavily on trade with china. >> bloomberg's east asia government editor john herskovitz there. look at stocks we will be watching when trade opens in korea and japan shortly. chip stocks in focus on the news that the u.s. and three asian partners met to discuss the global chip supply chain. big names trading in asia. japanese utilities may be on the move too. gigi reported five electric power companies are likely to delay plans to raise prices until may. jimbo can't say and shikoku electric power there. shery: warren buffett urged shareholders to keep the faith

in the u.s. economy after berkshire hathaway reported weaker results in some of its key businesses. operating earnings fell 14% the third quarter as higher prices hit railroad and insurance. in his annual letter buffett said he is yet that has yet to see a time when it is right to make a long-term bet against america. asml and the u.s. government are investigating potential links between a former employee accused of data theft and the chinese government. sources tell bloomberg the suspect has been identified as having potential ties to a chinese state-sponsored entity. the u.s. has been pressuring the dutch company and others not to sell advanced chipmaking technology to china. haidi: australian bonds. we have already seen the repricing really take place. yields have been pushing of a higher. the hot rating for the fed's most favored inflation reading really was the last kind of

impetus to send a global bonds read for the year. we haven't really seen a surge of 3.3% for global bonds in january by one gauge, the best month on record. that has pretty much gone out the window when it comes to february traders. they are really struggling to keep up with where the peak cash rate will be. certainly that's a question when it comes to the rba as well and how the central bank here is expected to stay higher for longer. in the next hour invesco tells us why the china reopening trade has mostly been laid out. plus to lloyd explains why the housing market is key to sustaining the china recovery. this is bloomberg.

♪ shery: this is daybreak asia counting down to asia's major

market open seeing the bond market repricing deepening and trade yields rallying in the u.s. after harder than expected pce inflation friday. now there to your yield is at the highest since 2007. haidi: we continue to see the session in australia narrowing as the rba, not only the fed has to stay longer, higher, all of this coming down potentially. do we get more progrowth policies out of china? what are you watching? annabelle: we are really all about the repricing around outlook. also as you say, building up to the mpc meeting march 5 in china. the question of what policies we will see out of that. here we have the open for japan and south korea. the open of cash treasuries. at the start of the day we are watching the two year yield very closely. we saw it hitting the highest in around 15 years after the core pce numbers came through rising 4.7%.

the overall porcine -- pce gauge is at 5.4 percent. both hotter than expected. certainly a lot of investor nerves coming off the back of that. the nikkei looks a little risk off at the start of the day. what does this mean for the boj given that kuroda is nearing the end of his term? he spoke at the g20 meetings over the weekend and said his peers understand the need for the bank of japan to stick with its easing policies. now let's change. we are having the open from stocks in korea. we are seeing the kospi lower by the tune of 1% in the first few moments. it is down to inflation what that means for stocks. we saw foreigners getting nervous year in the kospi. in the prior week we saw outflows to the true -- to the tune of around $.5 billion, the first time we have seen that selling on this basis in 2023. the korean won likewise leaker -- tracking weaker today's

training -- trading. the tune of risk aversion we are seeing in markets, we are still moving past the 1300 level. in australia again, the sentiment is being driven by more macro factors. we still have the earnings in focus. we are seeing woodside they're looking a little higher at the start of the day. we have an exclusive interview with the ceo later. it is australia's biggest lng producer that saw its highest ever profit on record prices. also, the purchase of bhp's energy division. a big conversation with haidi is coming up in a few hours. the other factor today is the outlook for recession. we have economist saying the odds are at one in three. that's up from one in four a few months ago. after delayed hiking from the rba we could see it with more consecutive rising down the fed. haidi: china's upcoming national

people's congress spurring a preference for on tour stocks with investors expecting to benefit more from potential progrowth measures. our next guest says there may be another leg up in chinese equities. ava chow is global market strategist at invesco. always good to have you with us. how much of the reopening trade has already played out? what will be the key drivers on the john next leg up you talk about? david: isaac e reopening trade has been played out since -- i think the reopening trade has been played out since november-december until earlier this year as investors flock to chinese equities at least on the onshore level. i think the next leg up for chinese equities will be the return to fundamentals. and, a rebound to earnings. kind of this evaluation disconnect we are seeing. we have to remember that cfi 300 companies earnings growth will be in the mid to high teens this

year. while four piece continue to be at a historical relatively to basis. shery: another big topic today is the global bond space. it's at far too early to extended duration and buy the dip in bond prices? would you venture into that space? david: i think given the inverted yield curve, the market is saying investors should be best positioned on the shorter end of the curve. i think both what it comes to cgp's and u.s. treasuries the shorter and makes more sense at this point. haidi: guest: what other opportunities do you see particularly as we get into expectations that something will come up to be the next catalyst for china, right? david: from a business and economic cycle we are seeing the start of the recovery trade in china and i think it makes sense to be positioned in sectors and

industries that do well during recovery phases including things like technology stocks and consumer typical's. and, staples. i think this is the year for those that have not been exposed to chinese equities to be so. because, we continue to get significant policy support from regulators. we can get more of that coming up in the congress expected to meet shortly. i think that the government cost pivot -- government's pivot to focusing on growth should bode well for investors in chinese equities this year. shery: we are seeing further developments with the alliance formed by the u.s. and some asian partners when it comes to tech. it is the tech story still something that will continue to weigh on the downside? david: i think this will be a geopolitical noise component that is going to come up every now and then and we have seen that happen in the past.

but, it is important to remember that it is very difficult to predict a geopolitical outcome. and a lot of the times, geopolitical noise is a short-term phenomenon. when it comes to the technology sector, i actually think it is a good thing that governments are a lot more in tune and actually spending money to grow their technology industries. i think that this healthy competition could bode well for the semiconductor industry. shery: david, we are seeing the korean won continue to weaken. it's now at the lowest level since mid december against the u.s. dollar. this seems to be a story about the pause of the be ok and nobly as well we see the strength -- the pause of the bok and globally we see the strength of the u.s. dollar. is this peak dollar or could we go higher? david: i think we have seen peak dollar but that does not mean we could not be at elevated levels for a while. i think a lot of it is

contingent on when inflation levels in the u.s. start to come down in a more meaningful way. we have not seen that yet. given where money supply levels are, given how high the mortgage rates and -- i think there could be, you know, elements of the u.s. economy that start to push inflation down. perhaps not as quickly as investors expect, but certainly, the path has been laid. haidi: david chao a global market strategist at invesco. vonnie: china renaissance holdings says its chairman is assisting chinese authorities in an unspecified investigation. it is the first public information about the banker's whereabouts since he disappeared over one week ago. his abrupt disappearance unnerved china's business a late and offend a speculation that the nations finance industry is set to face increased scrutiny. the international monetary fund is urging central banks to stay the course to get inflation under control.

managing director christina gary ava says despite a recent slowdown the pace of price hikes remains above average grade she said china's reopening could add to inflationary pressures. >> i want to be clear that we are not yet seeing inflation going down to target. fast enough. so, central banks need to stay the course and till -- until we are comfortable price stability is returning. vonnie: the u.k. and eu are preparing to unveil a post-brexit settlement on northern ireland. the agreement will be announced after a monday meeting between prime minister rishi sunak and european commission president ursula von der leyen seeking to soften trade and regulatory barriers governing northern ireland's unique place in that u.k. and eu trading markets read the u.s. held talks this month with three asian partners on the global semiconductor supply chain. a taiwanese official says the february 16 video conference of the so-called chip four group

discussed an early warning symptoms -- system to ensure a steady supply. the party held off on discussions of export controls and no company was involved in the meeting. i am vonnie quinn. this is bloomberg. shery: asian government bond yields surging across the board. let's turn to annabelle to check how tech is doing. annabelle: unsurprising, it's not doing much for tech stocks at the start of today's trade. under 10 minutes into the session for japan and korea and tech stocks are among the big lacquers so far. the border asia specific index in negative territory by one third of 1%. this is an outlook for big names in japan and also chip stocks in career. a big change. we are focusing on asian makers of silicon wafer is because we had results from a german maker on friday that said revenue and earnings in 2023 will be

significant below previous years levels, putting it down to an inventory correction across the industry. a disappointing outlook from siltronic one week after its fourth quarter results announcement where it struck a more positive tone. it is another headwind facing the broader chip sector. we are heading in to risk on trading. about 10 minutes into the session. basically, every single sector of our financials, which does benefit in a rising rates environment, is in the red. haidi: ahead, delight -- deloitte chief economist tells us why the housing market is key for boosting consumer sentiment later this hour. first, focusing on the preferential policy outcomes from china's national people's congress. could there be more progrowth measures? this is bloomberg.

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♪ haidi: more now on china's upcoming national people's conference. joining us from beijing is john liu. we get the sense traders are waiting for the next catalyst. the outperformance we have seen when it comes to onshore stocks recently over offshore suggests they are expecting something out of these political powwows. john: that's right. we have the national people's conference -- congress coming up march 5. the upcoming weekend. the main thing people will he watching out for is what will be the gdp target china's sets for 2023? officials have been debating whether to put the market about 5%. that would be substantially faster than china grew last

year, 3%. it would suggest beijing is getting ready to provide more stimulus and progrowth policies. i think the market is waiting to see if that comes to fruition. more important leak, we have a new government coming in. this npc will mark the end of the five-year term for the last government and we should get a new premier. most widely expected is lee chung who used to be the party chief of shanghai. what will he do with the economy now that he is in charge of making sure there is growth, making sure there is jobs? how strongly will he act to get the country to that mark? shery: what are we expecting from the new leadership in terms of focus when it comes to economic growth? we are getting deloitte's chief china economist in a few minutes. in his notes he makes a point that the measures need to be more targeted. john: i think looking forward

into the economic situation china faces in 2023 you see already in the first two months, based on the data we have had, consumption has recovered more quickly than the industrial sector specifically, more quickly than exports. with the economic situation in the u.s. and europe into the latter part of this year looking a little uncertain. i think there will be more done i the government heal -- here in beijing to spur consumption domestically, to try to make that a really strong leg for the economy to stand on and for jobs to be grown around. haidi: the target as to what the next crackdown is is always one of these elements of speculation when it comes to doing business investing in china. we heard apparently the china renaissance holding germans is cooperating in an unspecified it -- unspecified investigation by

chinese authorities. there were questions about his whereabouts a week ago, john. is this something that remains difficult for international investors to deal with and get transparency over? john: i think the question in these instances is, when a certain individual is taken in for investigation or to help with an investigation, whether it is individual specific, something specific to the company or person, or, an indication of a broader trend that the government is looking at an entire industry. with his situation, it's unclear whether it is one or the other. i think that is what is making the market nervous at the moment. not being sure whether this is a blip and may be company or person specific or if it means something bigger and broader is coming down the pike. shery: now, the international monetary fund is urging central

banks to stay the course in the fight against inflation. managing director chris telling uncle gave up -- kristalina georgieva said she is optimistic about china's expected reopening as russia's war in ukraine casts a shadow on the global economy. lex right now -- >> right now, stay the course. it is not the time to debate whether we have the right inflation target. that debate would swing us away from the main purpose, central banks to bring back price stability. it is important for consumers. and, it's important for investors that we return to price stability. as we make progress to see inflation including core inflation going in the right direction, there can be a discussion around what the future of central banks look like. it's true what we are seeing are

some structural factors that will impact price levels. for example, moving away from cost being the only definer of where you place production, to also, security of supply. well, if we provide some backup for security of supply, that would increase cost production. it would have systemically significance for the level of prices. right now, we have to win the fight against inflation. we have to restore price stability as a foundation for growth. look at where we are in terms of growth. we are not in a great place. this year growth is slowing down to 2.9%. next year, we expected to turn up to 3.1%. this is way below the 3.8 percent average we had before the pandemic. even at that time, we thought

growth levels were not sufficient. productivity is not high enough. as a result, we do not see the dynamism necessary. we are in india. let's take a cue from india. very strong commitment to reforms. executing the reforms with discipline. up as a result, india is a bright spot with growth that is an in vitro many others, contributing 15% of global growth this year. haslinda: ukraine is still casting a long shadow on the global economy. what is the overriding concern when it comes to ukraine and war ? in conversations with leaders in europe they say it is energy prices. >> it is energy prices. it is more broadly uncertainty. when we have uncertainty, it impacts investors. it impacts the ability for economies to grow. and of course, the war is terrible for the people of

ukraine. i was recently in kyiv. it's remarkable how the country functions despite the war. but, it's also very sad. to see the impact it has on ordinary people. it's terrible for the world economy. if we have this anxiety on energy prices lingering for a long time, of course it's detrimental to confidence. and it therefore, to global growth. so, the sooner the war ends, the better for everyone. peace is what we should all aspire for. haslinda: so much hinges on china's reopening. have you been encouraged by the pace? has china reopened at the pace you anticipated? works it has -- >> it has exceeded our expectations for the pace of reopening. i was in china december 8,

exactly the day china started the reopening. it's amazing to see how quickly domestic consumption has been accelerated as a result. two think about china. one, we do see china returning to stronger growth as beneficial for china and also for asia and the world. china, last year, for the first time in 40 years, was not a contributor to increasing global growth. they actually grew slower than the world economy. this year this will change. we expect 520% growth from china. versus a 2.94% average for the world. the second important observation. so far it is driven primarily by domestic consumption. why is this relevant? because, domestic consumption

versus export means that there would be less pressure on commodity prices that otherwise there could have been. why is this important for the world? because that would be helpful if china does not generate more inflation as a result of higher demand for energy and commodities. so, if china states that course of domestic consumption being the main driver of growth this year, next year, it's good for rebalancing growth in china over all, and it's good in not creating a new inflation pressure that would make the job of central bankers harder. haidi: imf managing director kristalina georgieva there. we have more to come on daybreak: asia. this is bloomberg.

haidi: the latest business flash headlines. warren buffett urged shareholders to keep faith in the u.s. economy after percheron for white reported weaker results in some key businesses. operating earnings fell 14% fourth-quarter as high prices hit railroad and insurance units. buffett says he has yet to see a time when it is right to make a long-term bet against america. asml and the u.s. government are said to be investigating potential links before -- between a former authority -- employee accused of data theft and the chinese government. the suspect was identified as having potential ties to a chinese state-sponsored entity. the u.s. is pressuring the dutch company and others to not sell advanced chipmaking technology to china. hsbc looking for a new global headquarters less than 50% the size of its current space in london's canary wharf

considering an office of between 400,005 -- 400,000-500,000 square feet. its current lease ends in 2027 area toyota laid off more workers -- twitter laid off more workers over the weekend curb cost. it is unclear home any people were impacted. we are told it could be dozens from teams across the company. ceo elon musk cut 50% of twitter's workforce last year after buying the company for $44 billion. australia's biggest lng producer woodside energy reported its highest ever net profit after tax, $5.2 billion in the 2022 financial year following the acquisition of bhp's oil and gas business last june. woodside will pay a final dividend of one dollar 40 four cents per share bringing the full year dividend to $3.53. shery: treasury yields are under a little pressure reversing some

gains last week. that was when the 10 year yield not only surpassed 390, but, the two year yield also hit the 480 level to be around the highest level since 2007. there has been a bond market reset this month. we are talking about they brought a gauge of the treasury market that will be slightly down this year after the first back-to-back annual losses since at least the early 1970's. there was expectation perhaps this year would go in the opposite direction. we are now seeing that reset after more hawkish fed speak, whether from loretta mester, susan collins, or jim bullard. also the pce index last week area >> -- week. >> this is all driving an extra leg of dollar strength playing out when it comes to downside. burdens on a lot of asian fx. dollar-yen 13628 at the moment. a little mixed in g10 early trade. the aussie holding a little bit

ahead of some options strikes we were watching. it closed over 1% lower for fourth weekly decline. the kiwi dollar flat trading at the moment, 6166. we are watching the korean won weakening to its lowest in two months against the dollar, seeing that continued pressure when it comes to speculation for higher u.s. rates. the bond -- the korean won is leading the decline for emerging asia. we will see of dollar-yen keeps up momentum for an extended run higher. ahead, earnings season is hitting the halfway mark. we focus on chinese companies. w(jennifer) chinese companies. 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 so you aren't hungry or fatigued.

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>> asia's earnings season has reached the halfway line with the vogue is now shoved in -- shifting to chinese companies as investors reassess holdings in emerging markets. let's bring in felix.

what are we expecting this week? >> they are going to report earnings this week. losses may narrow because advertised to businesses can benefit from the world cup. for both companies, they may need to to wait to see a solid rebound. overall, this is normalizing. they obviously fading away. >> w have momentum does not seem strong enough to support strong earnings. what is the dynamic there? do we see an improvement?

>> if you remember what happened last year, china abandoned its zero covid policy. because of the outbreak, many workers were on sick leave. now we will start seeing the impact on companies from the reopening. >> we saw a lot of pressure in chinese adrs last week. what are we seeing in terms of domestic competition? is it affecting part -- sectors like tech?

test look at its price on its model in china. many automakers followed the move. this chinese -- this is because of the price competitions. they may see a negative cash flow this year because of the rising lithium costs and the subsidies. quest that was felix tan with the latest on chinese earnings. let's get you to the latest in the markets. >> this outlook for earnings from chinese companies that weaknesses come through from that. it does indicate that recovery is looking a little unsteady. the hang seng tech index slide

into a two month low on friday. mainland china actually picking up. we see that southbound turnover spiking. what it tells us possibly is we are starting to see mainland buyers see hong kong as a bit of a bargain hunting opportunity. we are one hour out from the open. let's change now. when you look at this picture, we can see in the future space a drop of 1.3% for the hsi but broadly, it is down to that pc picture that came through inflation numbers hotter than expected in the month of january. we are seeing that coming out in the equities landscape. you can see the losses we are seeing in the korean won this morning. this is a barometer for global risk aversion.

commodity metals in particular. >> all expectations of where the inflation outlook will go. pressure for more fed hikes right now. consumer spending surging after the year and slum. our global economics and policy editor is here. so many different signals and strong as well. >> the federal reserve according to the study is behind the curve to a certain extent. maybe not realizing how high the curve will get. they wrote this 55 page academic research piece of lumber for the numbers came out on u.s. friday. look at the year over year and

what you see is you have the breakevens coming down. this is sort of a market view. for the numbers themselves, 5.4% on the headline. four .7 versus 4.6 on the core. those numbers are way too high. both of those are at a .6. this is three times what you would to see in a normal month. how did fed officials react to this? this is one of the people who comment on this base and she said rachel have to go up a little bit more and probably stay there longer.

jim bullard said the fed has to worry about losing its credibility and good. the fed has to get those rates up fast. let's listen. >> reestablish credibility now. sometimes i use the phrase more game theory, less econometrics. you want the establishment of the credibility. there is a certain amount of demonstration to markets if you move quickly. >> as for the study, funds rates will have to be at 6.5%. that is a good bit higher than the markets priced in. especially at 6.5%. they doubt the fed can engineer a soft landing where inflation gets back to 2% by the end of

2025. i think a lot of people say maybe that is not a big surprise. they are actually seeing some things -- people who have been doubting inflation for the longest time say it would be easier for the funds rate to peak at 6.5%. it puts a lot more of an interesting light on the march meeting. are they going to stay at 25? do they think 50 would be a good idea again? >> the european central bank will raise interest rates as high as necessary to bring inflation back down to 2%. the governing council member emphasizing that the ecb is closely watching wages and the energy prices for their decision. quest this is a difficult statement. it was supposed to continue to increase.

the issue is whether it will go down. that is the big question. since we are mostly considering second-round effects, this is the issue. the first component is the wage gap with increasing inflation. we should expect that prices follow not energy prices. if they don't, this goes for monetary policy being very attentive. chris we have seen prices of over 300 basis points. how much more room is there? >> this is our indication.

it is data dependent. in this sense, we have to really be cautious before we say anything. this is why we say decisions are going to be taken meeting by meeting. we give an indication because of what we have observed. we have to make sure that core inflation does not remain at this high level. there are a number of reasons why it is there. they are increasing energy prices but also, there is a demand issue. in some countries, they really are pretty tight.

this may increase wage increases beyond what is compatible. this is why we are observing these with a lot of care. but i'm not worried. >> the perennial question is where our peak rate markets? some are suggesting 3.7, three .8. what would you be comfortable with? >> i don't think we can indicate what it is. not even if it would be 3.5, 3.25. it is data dependent. this said, i believe that so far we don't have to worry. we were in a negative region as far as bill rates were concerned. if you look at the wheel rates,

we are around zero. there is no time to be worried. this is exactly the area it should be. we should not consider a normal rate as our objective. our objective is to go back. what i am pointing out is i don't think we should be excessively worried. shish i think we have to be very realistic. this is significantly -- this is

a term that is a number of meanings. my meaning is determined here, not large. >> let's get the vonnie quinn with the first word headlines. >> a classified intelligence report by the u.s. energy department has identified a chinese lab leak as the most likely origin of covid-19. the conclusion was reached due to new intelligence. the judgment was made with low competence. the u.s. national security advisor could not confirm or deny the report. hong kong might reportedly snap his mass mandate as early as march. no masks would still be compulsory in hospitals and other high-risk places. macau uses its own mass mandate. the nigerian ruling party has

won the most votes in a small southwest date as the final results for saturday's election are released. the returning officer says they want over 200,000 votes in the province. the elections have been marred by polling stations transmitting -- transmitting the accounts. global news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. >> delays chief china economist tells us what he thinks why the scars of covid-19 on china's economy are temporary. is bloomberg. ♪

>> two months into 2023, china's reopening trade has stalled as president xi jinping further consolidate his power and the government turns its focus to geopolitics. let's bring in our chief economist. what does it mean for the long-term when you have so much mistrust of the chinese government? >> there is a really interesting dichotomy between what is happening on shore and what is happening offshore. the struggle is for xi jinping

to go back the funds that have been so scarred by the policies of the past two or three years. this is when it comes to regulation of big tech, the property sector but also, the sheer kind of back-and-forth and market unfriendly policies and lack of transparency coming from beijing. onshore, yes. the optimism is being ramped up ahead of the npc. there is expectation of stimulus measures. offshore, there is still a reluctance from funds in the u.s. to allocate to china in the long term. >> there is always a regulatory risk. which sector could be next targeted? do we have some development here? >> the company said in a very short statement to the stock exchange on sunday that it knows

they are cooperating with an unspecified investigation with authorities. the statement was very short. it indicated the company itself has not been in contact with the executive and doesn't know where he is. he disappeared more than a week ago. this is something -- this is not the first on this happens in china. it is a function of the opacity of the legal system. it is trying to find its major shareholder -- controlling shareholder. this goes to show regulatory risk and a lot of transparency and communication to the market. this is just another example. this is a really stark reminder of that. >> joining us here in the sydney studio -- this is the process of the economic recovery. so great to have you in person.

this is your first trip out of china. what has changed? >> very few executives. everyone got back. secondly, i think after the opening in the beginning of december of last year, a lot of people thought it would be had. covid became yesterday's news. >> you talk about the scars of the lockdown. what about the existing problems like the property market?

>> existing problems, this is a global phenom. i think china's situation is where you are honest. consumers still have a lot of dry powder. that would take some time. i think most consumers are pragmatic. back to 90% of pre-covid level. i therefore upgraded this year's growth from 4.5 to 5%. >> how much does it help when the pboc is trying to guide rates lower.

what about when you want prices to accelerate, not only rates to come lower. >> you raise a very good point. because consumers have 80% of their assets and property sectors unlike developed countries. stabilizing the property market is very important. i still think policymakers have a few tools in their toolbox in addition to interest rates. various restrictions in the first year and second-tier cities. i think they would be very important. >> what targeted measures should we expect? >> i think it should be on the demand side.

for people who are waiting to trade, improve the housing conditions, it still a lot of difficulties. you know chinese consumers are cautious. consumers are queuing up from the commercial banks in order to repay their mortgages. we hope additional nudging on the policy front would allow consumers to take on more debt. part of the economy has to contract. consumers are expected to show -- shoulder a greater load. >> are you worried about the decoupling? >> you always talk about this. so far, i think there are more talking than actions. this is a dynamic game. you will have this ongoing

discussion of decoupling. >> more to come on daybreak asia. is bloomberg. ♪ inside, outside, big or small, angi helps you find the right so for whatever you need done. with angi, you can connect with and see ratings and reviews. just search or scroll to see upf on hundreds of projects. and when you book and pay throug you're covered by our happiness it's easy to make your home an a check out angi.com today. angi... and done.

>> day two for the bag of japan. .

what do we get from the last hearing from the lower house? he also is backing a continuation of stimulus for now. since then, we have the core cpi numbers. inflation accelerated beyond 4%. another decade high. >> the question is whether or not there will be much more in the ongoing commentary. traders have begun and give a bit of a shrug. he really stuck to scripts. given this very difficult balancing act of the bank of japan. we are washing whether we can see that extended momentum for a run when it comes to dollar-yen. coming up in the next hour, this

will be one of the guests. we will also be discussing more about china's possible reopening an impact on markets. that is just about it for daybreak asia. our markets coverage continues. we will look ahead to the start of trading. please stay with us. bloomberg markets open is next.

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>> good monday morning from hong kong. it is 9:00 him i