shery: you're watching daybreak: asia.

>> we're counting down to the market opens in tokyo. haidi: we get a start ahead in asia after wall street fell. china's president signals an overhaul of government agencies set to be unveiled at the national people's congress. investors are impressed with goldman's attempt to reset. >> we have the open up the asx 200. we are looking fairly flat. the big question is where do we go over the course of march because coming into february, it was a very bumpy ride. a lot of mixed messaging coming out of the fed. some strategist saying that this narrative of higher for longer does have a ways to go.

domestically in australia, we have the gdp data in focus. we were have fourth-quarter numbers coming out in the next hour. the consensus is expansion of .8% for the quarter. if we get that reading, it could be another motive for the rba to stay hawkish. let's look at the rest of the region. other factors they're watching is what's happening with the yen. it is slightly under pressure. strategist saying the yield differential between the fed and boj could be more in focus over the coming few weeks. we are seeing chinese futures looking fractionally higher. one thing interesting to note is the leader that we have from the u.s. session and that golden dragon index again under a bit of pressure. losses over the past four weeks to the 15% mark. shery: from the january hi, not to mention alibaba suffered an $85 billion route.

look at u.s. futures extending the pressure that we saw in the new york session. it was the last trading session of february for u.s. stocks. a brutal month. the s&p 500 losing 2.5%. more data today showing that u.s. consumer sentiment declined in february. also another month of declines for home prices. the dollar and ground -- the dollar gained ground. this is to round out a february of strength snapping or months of losses. oil prices under pressure in the asian session. today in the new york session, we saw a little bit of a rebound because we have seen supplies -- signs of supplies tightening. with the china demand recovery

not really living up to expectations, we are talking about four months of losses for wti already. haidi: some of the world's most risk-free securities are delivering bigger payouts than traditional 60/40 portfolio. it's a tough ask to try to work out what an ideal portfolio is given the pace of repricing and the amount of uncertainty that lies ahead. >> very much so. cash could be attractive significantly lower yields than it's already offering. you are getting something for your money unlike what happened for equities where a lot of people bought in and ended up losing after the turnaround. same thing for bonds although with bonds, there is a long-term yield.

in these times when yield looks more attractive than the potential for price gains or losses, the riskier securities, you can see the attraction of holding cash holding t-bills, the instrument doesn't last long enough for any price movements to matter. that's part of the backdrop, there's a lot of nervousness about what march could bring for a range of assets. it is traditionally been a tough month for corporate bonds. as 20 of nervousness for treasuries -- there is plenty of nervousness for what treasuries might do. in that context, a lot of people are going i percent on a t-bill, -- 5% on a t-bill, give me that.

shery: anything that is tough in the u.s. is intensified in emerging markets. asian assets have felt the pain. guest: if you want to understand what's been going on with asian and other emerging assets, you have to look at the u.s. dollar index which came roaring up and sure enough when the dollar index is on the rise, emerging-market assets usually fall further been developed market assets might do which was again the case. we came into this year with a strong indication that emerging-market assets had bottomed out when the fed shifted from hiking 75 basis points to 50 than 25.

then with the sudden collapse of the pivot narrative, the dollar has come surging back and emerging markets are under the gun. those bruises are going to make it harder for emerging-market assets to make a strong comeback for some time because investors are going to be worried if they go in, or the going to get bruised again? shery: there was a lot of optimism that perhaps china could come to the rescue for global markets. is a lot of uncertainty around geopolitics. xi jinping signaling an overhaul of agencies. let's get more with stephen engle. what is in store at the npc that starts this weekend? >> i've covered a lot of these come up the two meetings that start in just four days.

march 5 with of course the big gathering of party officials as well as government officials in beijing. times are little bit different after xi jinping secured the third circuit -- third consecutive term. he will take over that mantle with a team of loyalists. gone are the days of a standing committee and consensusbuilding. now it's about consolidation of power of xi jinping and he has alluded to that by saying that he is going to essentially accelerate reform of many government institutions including oversight of the financial industry. he says that will happen at a relatively intensified manner. keep in mind, the two gentlemen who are going to be overseeing financial and economic development are two of his stock just loyalists. one is likely taking over as economics are. -- economic czar.

as was the premier which oversees economic development. they're both loyal supporters of xi jinping. broader reform will be on the agenda. the tea leaves indicate it will likely put the economic development and reform more under party control. rather than controlled by the state institutions. of all the national people's congress this that i have covered, this perhaps is shaping up to be one of the more consequential once. haidi: what about broader to mystic support? -- broader domestic support? >> i just mentioned the consensusbuilding with the government, perhaps those days are gone. where are the checks and

balances? that might come from society. we saw unprecedented uprisings following the covid zero lockdowns and the pain that was being felt across china. we saw protests and that was kind of a referendum. it is very hard metric to determine how much is the xi jinping has anecdotally and empirical evidence indicates an increasing number of people most notably in the commercial center of shanghai that support for xi jinping skepticism of his policies are probably mounting. we have interviewed a number of people on the streets of shanghai at least 12 of them and there is a deep cynicism and skepticism of the path forward under xi jinping.

if you have been bitten once, you are a little more shy the second time around. the people will have to be convinced that the path forward on a more consolidated mandate of xi jinping is the right way forward. shery: we saw the chinese abr's under pressure, there is no firm conviction about the economic recovery. one stock that was falling, goldman sachs tumbling in new york even as the bank tried to rewrite the narrative edits investor date. the chairman and ceo admitted mistakes and hinted at deeper cuts within the troubled consumer business. it looks like for now investors are not buying the positive spin. >> know they are not. the strategic missteps overshadowed everything and you had goldman brass strenuously attempting to portray the firm's strength to investors and to promise to consistently belt out

protectable profit in the future, but the stock price tells the story. goldman the only of the big banking stocks in the red. the biggest drop since january. the ceo was visibly flustered as investors wanted to know what caused the firm about $6 billion in losses since its inception? >> there were some clear successes but there were also clear stumbles. on the direct consumer businesses, we found the more challenging. it became clear we lacked certain competitive advantage and we did too much too quickly which affected our execution. >> the positive spin, goldman played at the prospects of the asset and wealth division. and as for platform solutions, what's left of the consumer banking they said profitable. they talked about cost cuts. they have implemented a

cost-cutting since january. all of this is designed to prop up the stock which had a disastrous 2020. solomon has also been dealing with satisfaction within the bank. haidi: let's get you to vonnie quinn. >> u.s. house committee has advanced several china related sanctions bills. they include plans to bar chinese officials from using u.s. financial institutions and also support for taiwan's membership in the imf. global atomic monitors say iran's stockpile of uranium has increased over the last three months. a report says that the finding was inconsistent with enrichment

levels formally declared by iran. sydney property prices have risen but the rebound could be short-lived. data show prices climbed 3% in february driven by high-end sales. the property consultancy says expectations of further rate hikes and weakening economy could put a lid on further increases. india is bracing for sweltering whether -- weather. most parts of the country could experience heat waves through the end of may. it could further strain the power network. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. shery: still ahead why the chipmaking industry may no

longer be relying on asml. but first i guest from beijing to discuss post-covid business sentiment. this is bloomberg. ♪

>> most of our clients are very concerned about the inflation particularly corporate clients. they see it more persistent in their businesses. the marketplace is a little more complacent on inflation. that to me is a disconnect. we are keeping a close eye on that. haidi: the goldman sachs president and ceo talking about market sentiment. our next guest says volatility is opportunity. joining us is the cofounder and

managing partner. is this more skewed to the downside at this point? >> there's a couple of things going on. one is we are seeing a bullwhip effect. it's a consequence of a hard shutdown in an equally severe reopening. that led to all of the supply chain problems. the inflation issues and policy responses. it is really operated in ways. it has been a bullwhip effect. we are seeing that and that is feeding through to the market. after january, we put out a note saying don't everybody start to

do victory laps too soon because we think there's a very high chance that the way things are shaping up, february could be ugly and just as people are getting extremely pessimistic now that february has redirected the narrative in a negative way for the rest of the year, we think it's more likely to be these pits and starts and continued waves because of this underlying bullwhip effect and the policy response. the fact that the scale is so extreme is creating extraordinary cross asset volatility. to us it is a warning sign that something very significant could be about to happen at some point during the year that will end up breaking the cycle either to the upside or downside. haidi: are you staying fully invested?

we are seeing cash beating out 60/40. do you make that massive perspective adjustment? guest: again we are reacting to the volatility. we did an awful lot of profit-taking at the end of january. at that point, we had probably the highest cash holdings we had for quite a while. if you look at it now, we are redeploying that and we are getting closer probably about 95% invested at the moment. it's just writing the ways. we are looking at certain trigger levels, certain assets that we think whatever the volatility shakedown ends up telling us, some assets would bigger going to be ok and that is primarily buying long treasuries at the moment and gold miners. it's shakedown is negative in

terms of economic activity, that's going to be brutal for equities. we don't want to be caught holding equity bag. we don't mind being caught holding the treasury back. if we had a price rally and treasuries from here, playing into the bullwhip thesis we will be shelling into that. shery: what is the liquidity picture? >> liquidity is looking good for risk assets. if you look at reserves, there's plenty of cash throat -- floating around in the market. we are not buying fully into this is the clear negative trigger that everybody has been looking for. not sure that is the case at all. if you are buying risk assets, there's reasons for doing that. having said that, we see that something big could be about to happen so the way we are approaching risk assets is with some degree of protection. we would rather have long short.

some options protection. we think there could be money to be made on risk assets this month or next month or the month after but you don't want to be caught holding the bag. the liquidity picture is supportive, you still want to have some protection against the fundamental picture. shery: we have seen prices continue to surge here, but it has not been the case across asia. what do you see as opportunities in the region inflation remains subdued? >> it's the same story that we have been anticipating for a few months which is domestically focused chinese companies are going to be the place you want to be on the upswing. chinese smaller companies are probably the best way to play that. we've had exposures to chinese tech, we sold those at the end of january.

the domestic focus company story is much clearer than the tech story. tech could be a big player for china, but it is dominated by a lot of consumer discretionary companies and those are valuations that we find a bit worrying. it's clear to us that smaller companies are a better focus to play chinese reopening. we are going to see the bullwhip driving the direction driving the path of that. buying and holding died the minute the current policy makers unleashed this with the reopening policies that they did. i think you have to be more active than i have ever been in my career in order to respond to these impulses. shery: busy days ahead for you.

you can get a roundup of all of the stories that you need to know to get your day going in today's issue of daybreak terminal subscribers go to dayb . this is bloomberg. ♪

shery: we are counting down to the start of trade in tokyo. in japan, monic screw -- monix group has hired a new leader. we are also watching softbank planning to focus its investments in latin america on startups already in its portfolio. the strategy is aimed at helping

to fund mergers and acquisitions during slump evaluations. haidi: mexico's president has announced that tesla will build a new plant. he says that elon musk has given environmental assurances including the use of recycled water. he says elon musk was responsive, understanding of mexico's concerns, and accepting of its proposals. a supplier of apple products says rising geopolitical tensions could push them out of china faster than anticipated. the chairman says they are investing in a new plant in vietnam and considering expansion in india. he says companies have been urging suppliers to explore alternative locations. an executive chair says she expects the banks valuation to improve as interest rates rise pledging a return of profits to investors.

the bank benefits as rate increases -- >> for the first time we are announcing and committing to double digit growth. we announced a 50% pay off and other i've asked. yes it is a new beginning for a very exciting time. haidi: just to have beget an exclusive preview of the china business climate survey. that is coming up next, this is bloomberg.

shery: in just a month, emerging asian assets have gone from buy to sell.

this could signal more weakness ahead. asian government bonds posted their worst month since september. higher u.s. yields of lured funds away from developing markets in fact overseas investors have pulled more than 400 million dollars from indonesian sovereign debt. asian currencies have underperformed broader ems. most analysts don't see a recovery just yet given how difficult it is to call the peak in u.s. rates. goldman sachs warning that em debt could face the same risk from last year. to wrap up on a more positive note, their hopes that more stimulus measures from china's upcoming national people's congress could give a boost to emerging asia. amcham china

survey has served as a barometer for the business community in china. what were the key findings from this year survey? >> good morning and great to be with you. this is the annual survey of our members to see how things are going and i could sum it up in a few words. number one, u.s. companies in china are exhausted after three years of covid zero. they are concerned there are number of challenges some geopolitical others on the ground economic. the majority of companies say they are going to stay in china, but they are challenged and they highlighted a number of those challenges in the report. shery: we are headed toward the national people's congress. there has been a lot of optimism that we could see more support measures coming. at the same time, it is more of a consolidation of power moves for xi jinping. how opened your members feel

that china is right now? guest: one of the concerns are companies have raised its last year there was a lot of talk about china building its own systems. our china companies are asking what space is there for us to play in china? there's national level treatment where domestic companies seem to be an advantage and that is a concern for our companies. a lot of our companies have been in china for decades, it still a good market, but concern you raise is real. how big of a role will american companies be able to play in china going forward? haidi: has the rapid turnaround when it comes to covid policy meaningfully change sentiment amongst your membership? guest: as i companies have been exhausted by three years of covid zero.

it was a little bit like whiplash how quickly things changed. one of the things we have been trying to say to government officials is it's great that covid zero is over. a number of challenges remain even though china opened january 8. including their still not enough lights, it's still difficult to get visas and there's overwhelming u.s. china sentiment the difficulty that gives businesses. that comes up in a number of places. it also comes into play in human resources. this is the first time we can member that our companies have said more than 50% of them were not making a profit in china last year and that is a major concern. haidi: part of it is u.s. china geopolitical tensions, but the other part is homegrown domestic industrial policy priority shift. is that a sense that increasingly you are seeing more sectors that affect more and more remember ship that perhaps

they don't feel welcome more they're going to be affected by more isolationist policies? guest: what we hear from our chinese customers is they want to buy american products. they want to continue to work with u.s. service firms that is protectionism at home. there are number of sectors we have never been in. others we are being squeezed out of. getting equal access has been a challenge that our companies have raised. shery: we heard today apple suppliers were racing to exit china. are you seeing more of those concerns? from american businesses? guest: it's a good example. 75% of our company say they are not leaving china but there's another almost 25% who say they

are starting to look at other locations. sometimes it's because during the lockdown supply chain constraints made it difficult for companies and they are starting to de-risk their supply chains. keeping her operations in china or building your operations somewhere else. shery: there was also skepticism about the revenge spending we could see in china. what are your members seeing? guest: january and february, the numbers for retail spending looked really good but you have hit on a key question. people has said will this continue? the china consumer has been very important globally and we saw in the chinese new year some consumers going out to travel so we know they have money they want to spend.

you just asked the $1 billion question. haidi: the chinese market has broadly been one that is too big to ignore for a lot of these companies. that's what there's investment into china despite a lot of the risks that come with doing business there. for example you look at the instance of the big four accounting firms reportedly being frozen out of being able to do auditing. do you see more of that and is the cost weighed against the reward that something businesses are thinking about now? guest: you have a lot of good points. number one, china has a quarter of the world's population. it's impossible to ignore the consumer market. we are very concerned where we see things like the limitation that doesn't allow u.s. service companies to provide services

chinese customers. if you talk to those chinese customers, they want to buy u.s. business. they want foreign service providers to hopefully what will happen is the market will push back a little bit against government regulations and say they may be a foreign company but they provide the best service, please allow us to continue to buy from them. brand usa is really strong. it's one of the biggest and strongest tools the government has. that's why were happy to be here helping u.s. business try to find inroads for markets. it is challenging to work in china, but we cannot ignore how important the chinese consumer is for the global economy and u.s. business. haidi: let's get you straight to the markets. annabelle: taking a look at the month that we just saw because

it was are the worst or the worst for asian stocks since september. a lot of factors first the realization among investors that the fed is going to keep raising higher for longer. add to that uneven earnings particularly from chinese tech giants. and signals of economic weakness coming through. we also have momentum that is not on the side because we have the rsi looking close to the 30 level indicating oversold conditions. the dollar played into the story as well. this was the best month for the greenback since september. the likes of westpac saying is going to stay on a firm footing as we head into march. given that the fed still has a lot of work to do around the core inflation reading and there are more signs of resilience in the u.s. economy.

the mood today is cautious. most stocks are trading in the red. we are 30 minutes into the session for australia. korea will be shut today for a public holiday. u.s. futures are weaker after we saw wall street closing in the red. a lot of data is coming up in the next hour. we have export numbers coming out from korea. the gdp reading from australia plus pmi readings or china and southeast asia. shery: let's get the vonnie quinn. >> xi jinping has signaled an overhaul of chinese government agencies. he told officials broader forms -- broad reforms will focus on key industries and sectors in an intensified manner. it is set to confirm his third

term as president. on arrest warrant has been issued for amnon con. he called on his supporters to keep up protests. new zealand's housing downturn deepened as the rbnz continued to hike interest rates. the average house price declined the equivalent of 582,000 u.s. dollars. the central bank predicts they will fall from their peak early next year. a former ftx chief has pleaded guilty to several charges including wire fraud. he is the third member of the inner circle to flip against sam bankman-fried.

saint -- saying he knew alameda research was borrowing billions without customers knowledge. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. shery: coming up next, we will hear exclusively from an executive chair about their commitment to double digit dividend growth. this is bloomberg. ♪ what if we live to 100. i don't want to outlive our money. i keep eating all these chia seeds. i could live to be 100. we work with empower, even if we do live to 100 we don't have to worry. eh, not worried. take control of your financial future to empower what's next.

shery: shares of santander rose to a three-year high after he promised to return a high dividend to investors. >> success is delivering on what you commit and we delivered on the 2019 investor day plans in spite of covid, the war in ukraine, now inflation and this is important. i gives us a huge confidence that the model works, our customer focus providing good

returns for shareholders. this is an acceleration of that delivery and this is what matters and what we said today. >> how much of this is thanks to rising interest rates because the ecb and the global economy and how much of this is delivery on strategy? >> more than half is actually because we are improving every year and we are going to do much more in the next few years improving our operating model. some of it is tailwinds. it's not healthy to have an economy with negative interest rates. we suffered more than most. we were giving mortgages out at 10 basis points a year ago. some of it is tailwinds, but it's a normalization of interest rates. a normalization of how the system should work. more than half is what we are delivering in terms of a better operating model.

>> are you confident overall about the world economy? you were confident what we spoke to you on earnings. >> the strength of demand is so high and the key number for us as a retail commercial bank is employment and we are continuing to see strong employment. that will change. how fast i don't know. there's not a painless way of cutting inflation. the question is how high a price you pay. we have a lot of experience in managing countries not now, but for years. the sooner you cut inflation the better. but you have to take some pain. shery: that was santander group chair speaking with francine lacqua. australia reports fourth quarter gdp numbers in the next hour.

paul allen joins us with the latest. we are expecting a modest expansion of the final quarter of last year but where are the weak spots in the economy? >> there are quite a few of those. we had better than expected retail data out for yesterday but back to december, those numbers were very bad. that is weighing on the third quarter fourth quarter gdp numbers. inflation problems very well-publicized. supply problems as well creating issues for the construction industry. increased mortgage payments. the housing market has been slowing down. housing numbers were out earlier on, national prices down 9% although we did see a slight uptick in sydney prices. plenty of pressures for the economy at the moment.

shery: more people see intentionally a recession coming in australia but not necessarily from our economists. >> definitely a lot of conversation. bloomberg thanks australia will avoid a recession. a lot of that hinges on the reserve bank of australia that meets in just under a week. we have had nonconsecutive increases so far and attempt looks nailed on with more after that. melbourne university sees a 5% chance of recession and australia. the consensus seems to be that yes it is possible but probably unlikely. risk is around how aggressively the rba decides to get. some see another 90 basis points to go. bloomberg economics a little bit

more optimistic seeing another 50 basis points to go. the keys to whether or not we open the door to recession are very much in the hands of the rba. shery: paul allen joining us from sydney. a senior economist binds us with instant analysis as we break those edp numbers. -- gdp numbers. the new technology threatening to break up the status quo when it comes to semiconductor chips. we will discuss that in a moment. this is bloomberg. ♪ go. go air that runs factory. go sensors and software. go find leaks. go fix-em. emerson technology detects compressed air leaks to save manufacturers, like colgate, over 20% in energy costs. go brush your teeth. go boldly. emerson.

>> a quick check of the headlines. goldman sachs shares tumbled after it hinted of a further dismantling of the consumer business. consumer platforms lost $6 billion since being set up. goldman sachs offered an upbeat outlook for its wealth and asset management units. credit suisse has been ordered

to take several remedial measures while proceedings will be opened against four former managers. the ceo of nokia says the company continues to extend market share with the enterprise side the fastest growing. we were told the india is now its biggest both market and the 5g cycle has not. overall, customers are more optimistic than expected and less in freight -- less afraid of a recession. >> there's a little bit less of the recessionary fears. i personally thought that two or three months ago europe would have a real crash landing in terms of economy. it does not seem to be happening and that is clearly reflected in our customer's plans. >> the global battle to access for semiconductor chips is heating up with new machine setting up to challenge a.m. -- asml's on the market. the new machine lets customers

reduce the amount of time spent on chip lithography. it is an expensive process. is this potentially a game changer? >> potentially yes but maybe a little ways out for we can tell how much of an impact it's going to have. i think in the short-term, you have intel stepping out the equipment. he still have yet to see if the other chipmakers like tsmc and samsung going to use it as well. sevis going to be a hit with an industry. -- to see if it's going to be a hit within the industry. shery: to what extent will it have an impact on the asml? >> it potentially let's

chipmakers rely less on asml equipment which does a complex task in the chipmaking process called lithography which sometimes requires it is basically the burnings of lines into chip materials and sometimes it has to be done to her three times. this will let you do it just one time or fewer times and save money from that process. ultimately that means maybe you have to buy fewer machines down the road. for now analysts don't see a big impact on their business because of this but if it is successful in the long term, it could have an impact on the. shery: what would be the impact on the broader industry? will chip name -- will chipmakers embrace this technology? >> if they do, they analysts are saying for now relatively small amount it could add up to 300 million in annual sales to

applied materials. ultimately, it could be a bigger deal for them if it catches on what they are arguing is that essentially if you use this and you make 100,000 chips for a month or so, you could save as much as $250 million because you are having to do these expensive processes less frequently and you can save energy and potentially water because chipmaking is water intensive process. shery: that has been a big concern in countries where you have a shortage of water. good to have you with us with the latest on that new technology. these are some of the stocks we will be watching when the trading opens in japan. korea is on holiday today but keep an eye on pc makers after hp maintained its annual guidance for cash flow.

morgan stanley saying shares are poised for a correction amid concerns. nintendo sank to a low f -- on tuesday after a goldman sachs ratings cut. coming up jp morgan explaining why they are seeing early signs of distress appearing around the world plus instant reaction to fourth quarter numbers. this is bloomberg. ♪

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worchester haidi: this is daybreak: asia.

a brutal february for risk assets worldwide, we will see if march -- things look better. potentially, we could see more uncertainty around the world, at least today. a busy day today, gdp numbers out of australia, lots of pmi numbers as well. annabelle: and cash is king. it is a brand-new world that we find ourselves in. this changing of expectations, i wonder if it still has some ways to go and more volatility lies ahead. february was really a month to forget, regardless of just about every asset class. we are in for a bumpy ride, that is what a lot of strategists are saying. we do have south korea trade numbers coming through in terms of those numbers, we are just waiting for those to populate. we will keep an eye on what we are expecting. the big moves that we do wait

for is in terms of the trade deficit number, we did see that reaching a record level in the month of january. in terms of the opened that we have for japan today, the focus is very much on the yen. this is also being hit by the trade numbers there, given the deficit, it is continuing to loon. we do have weaker commodity prices, that is down to those exporters. weaker numbers for automakers, chipmakers. in terms of how that sets us up for the trading, the nikkei two to five coming online weaker. a little unsurprising. 10 year cash treasury is still sitting at 4%. let's turn to what we see in australia. the asx 200 is one hour into the trading. the focus is very much on economic data, not just pmi readings, but also

fourth-quarter gdp numbers dropping in australia in about half an hour. the expectation is for growth to be about 8% on the quarter, that could give the rba reason to be a little more hawkish. speaking of hawkish, we are expecting the fomc to stay a little more hawkish in the months ahead. we continue to see resilience in the u.s. economy and oil trade is very much reacting to that as we continue to watch those stockpiles that are growing. shery: bring in our next guest, who sees early signs of distress. we have global research chair at j.p. morgan. great to have you in the new york studio. have been traveling all around the world, tell us what you are seeing on the ground when you are worried about the signs of distress. voice: there was a lot of exuberance in january, because there were surprises. and come february, we have seen

a reversal of a lot of this sentiment. the question we are getting is, where is the terminal rate going to take? are central banks going to have to do more? the fed, the ecb, the bank of england. we have made more revisions, and there has been some disappointment on the china reopening. there was this initial exuberance, particularly in commodity markets. now the question is, how much will come out of the sessions that are underway? will we see any bigger announcements? there is not really the scope to do that. i still think we will have a big recovery in china's growth, up to 5.5%. some of the spillover that everybody would thought would but -- would boost emerging markets, it hasn't played out as much. this is not the usual kind of boom that we have seen when china has had a recovery in growth. shery: even if you look at

currencies in the emerging markets, asia has been underperforming broader. why aren't we seeing that lift when it comes to currencies and other assets in asia that you would think are more susceptible and exposed to china? joyce: i think the consumption and services part is much more the domestic phenomenon. we have have recoveries in china before, it has often been on the export investment side. that is not the case this time. this is a trend that china has been focusing on to go back to more domestic consumption, domestic drivers of growth. some of the expectations for what the government could announce were probably too exuberant, as well. we do think that you will see out of these twin sessions, some things on the framework. the longer-term framework that will improve. probably less than what the market had hoped for. some of that exuberance has

faded as we are ending the month of february. more broadly, we are still -- it is much too early to say that the tightening cycle is over. nobody is talking about an ease on the second half of the year. shery: you are right when it comes to domestic priorities. whatever we get out of these sessions, we will be focused on that, those to mester drivers for growth. is it possible to gauge what they could be and how you invest along those lines? obviously, you want to be on the right side of policy when it comes to investing in china. joyce: i still think there will be a recovery in travel and tourism. there is still a lot of pent-up demand. it is something where, that is 250 basis points. there is still momentum here to go. some of the focus that has been on the property sector, there be more measures that are forthcoming or on household income?

that is where i think you could see some disappointment. still the more domestic sectors that will benefit here. i think that some of the exuberance on the commodity side, that is where i think you have seen some disappointment that everybody has look at the past cycles, the past memories of how these recoveries have they doubt. this is different, because it is much more on services and the domestic consumption. haidi: i was to the inflationary picture, are you a buyer into the idea that we are going to see a another round of inflation globally be unleashed as a result of the china reopening? is it going to be more nuanced? joyce: i know was not synchronized with the rest of the inflation cycle around the globe. you actually had deflation in the ppi in the fourth quarter. i am not so worried about the high inflation in china, but overall, what you are seeing is the move in core inflation

globally. this is where we have seen a broader move that is taking hold with respect to the forecast that we are doing for the developed country and central banks across the board, whether it is the fed, the ecb, or the bank of england. in china itself, we are still looking at 2% or even 3%. in other parts of the world, this is where we have had more inflation surprises. we have seen only partial disinflation. that is really what the key question is right now, where will the terminal rate need to peak? shery: taking all of these geopolitical risks as a new normal? are we being too complacent about those risks? joyce: i think there is some complacency that has set in. because everybody has kind of gotten used to watching this. a year after the war in ukraine, who would have thought that we would actually have the oil prices lower? i do think you are going to see still attention focuses on u.s. and china tensions. the first night of the select

committee is tonight in the u.s. congress. could you see more export restrictions and investment structure? or sanctions on individual companies? some of the bigger picture things like taiwan, i think there is more caution on actually doing something this year, in the run-up to the january 2024 elections. that may not be as eventful as a lot of people feared. shery: really good you in person, global research chair at j.p. morgan with her views on the global economy. that's get to vonnie quinn. vonnie: global atomic monitors say iran's stockpile of highly rich uranium swells to a record in the last three months. they are still trying to clarify how uranian resist was produced. an iaea report says that finding was inconsistent with enrichment rebels -- levels. a pakistani court has issued an

arrest warrant for former prime minister. he skipped a hearing on charges of selling state gifts. the politician called on his supporters to keep up protests. india is bracing for a sweltering weather after already suffering it's hotter -- hottest's february. they may experience heat waves through the end of may. that could further strain india's power network. it also poses a threat to crops, which were expected to reach a record this year. sydney property prices have risen for the first time in 13 months, while the inflation battle means inflation could be short-lived. 0.3% in february, driven by high-end sales while melbourne and brisbane slipped 0.4%. they say expectations of a further rate hikes and a weakening economy could put a lid on further increases. line

global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. haidi: let's take a look at some of the movers we are watching. annabelle: we didn't have hp coming out after the ballot maintaining its annual guidance for cash flow with the expectation for the fiscal year outlook of about $3.25 billion. that is even as the pc maker does grapple with a broader industry downturn. these are some of the biggest names we see in japan today. the korea stock markets are shut for a public holiday. another stock we are watching at the start of trade is nintendo. the stock actually slid to its lowest level since 2021 in the prior session after goldman sachs downgrade, it is the latest brokerage to do so, given it says the market is really

awaiting some sort of successor to its aging switch console. it's a bay she has also come out and they are saying that shares are poised for a real correction and there are concerns that earnings will remain weak during the fiscal year that ends march 2024. shery: still ahead, we will break australia's fourth quarter gdp numbers and ask whether the economy is still on track to avoid recession. up next, a preview of what is expected of national people's congress, xi jinping begins his second decade as china's president. this is bloomberg. ♪ a “why.” no matter your purpose, at pnc private bank we will work with you every step of the way to help you achieve it. so let us focus on the how. just tell us - what's your why?

ever better. it's when disruption hits your supply chain and ryder makes sure you're ever delivering with our portfolio of transportation services from freight brokerage to transportation management, truckload capacity and dedicated trucks and drivers. at ryder, ever better is not a tagline, it's our standard. discover how ryder transportation services can make you ever better. >> all that has tapered off as you get into february. travel has slowed down quite considerably. you look at year-over-year results, you are still not seeing that growth accelerate

compared to last year levels. the economy, in many ways, remains under pressure, especially the chinese consumer. >> weekly are exhausted after three years of covid zero. they are concerned, there are a number of challenges, some geopolitical and some economic. they are committed, though. the majority of companies say they are going to stay in china. but they are challenged. haidi: some views on china's challenges. xi jinping is signally an overhaul of government agencies ahead of the annual gathering beginning on sunday. let's bring in david. and enda curran. looking ahead to the mpc, this latest story, i guess the process of consolidating power is not quite done.

stephen: that is what the tea leaves and especially after xi jinping at a conference yesterday essentially said that the intensity of the broad reforms of government agencies will happen relatively at an intense manner. again, i paraphrase. what we are likely seeing here is xi jinping with this mandate and a stacked standing committee of loyalists, including lee chong, he will be premier. also who lee fong eckley taking over from leo as economic czar. he is also possibly pegged to become the pboc, central-bank party secretary. whoever also assumes the next governorship is faced with a number of those challenges that those guests who were just

talking about, a slowing chinese economy, a consumer that is perhaps reluctant to get funding again. with this mandate that xi jinping has gained from the congress in november and october is a chance to offer some broad reforms. we don't have the specifics, but what we are likely going to see is a party, the communist party of china, taking over a firmer hand on the tiller of the economy. of all the national people's congress that i have covered, this perhaps, is shaking up to be one of the more consequential ones. shery: is the chinese public feel about president xi? stephen: i just kind of alluded that the days of consensusbuilding perhaps are over. you have a bunch of loyalists. where are the checks and balances of xi jinping's power going to come from? that, we have already seen in the waning days of covid zero

policies, those protests in all corners of china, in particular in shanghai, the commercial center of china. anecdotal and empirical evidence suggests that people are highly skeptical of xi jinping and whether his policies are going forward after they have been burned by two months of lockdown earlier last year, they are not necessarily convinced that he is the right person and has the right team. the premier to be, lee chong, was the party secretary of shanghai. he rose rewarded for the lockdown, which caused uncomfortable pain to many households in that city of more than 25 million people. here is what one person said. this is anecdotal evidence collected by bloomberg news on the streets of shanghai. one person who refused to give her name said, if someone hurts you then it will take a long time to rebuild trust. that seems to be the prevailing word on the street. shery: of, public support also

hinging on the strength of the country's economy. what are we seeing on the ground? we are getting those pmi numbers later today. enda: it seems to be the economy is making some headway, but sluggish. we will get the pmi today, expected to all be in positive territory. likely reflecting strength. oh what to look at in terms of subway usage and traffic jams. all of that pointing to a pickup in consumer activity, especially in the wake of the holiday. did the manufacturing side of things, still somewhat sluggish, that is because global trade, and the numbers this morning have been reinforcing numbers. the pmi is supposed to be in positive territory, showing the economy is finding its feet again but has a long way to go. vonnie: we note that covid zero was expensive. is it time to talk about the debt problem?

enda: you could argue they made a bad call on that, i think the policymakers are trying to pull off something of a balancing act right now. we know the debt story in china hasn't gone away. did some sectors have improved. nonetheless, a space where they have to focus on growth, all the signaling coming from the official sector seems to be that they want to get the economy moldering again this year. obviously, the debt story hasn't gone away. we know that has been a focus in recent years. at some point, they will have to return their attention to that. i think the messaging is expected to be one of doing whatever they can to support growth and it is expected to be another year of more public spending and support from the central bank. shery: we all just want to thank

you. haidi: we are of course watching the u.s. select committee hearing that is going on when it comes to china. shery: are expecting people to testify, including mcmaster, the formal national security advisor -- former. chinese threats to the u.s., as u.s. china tensions escalate and president xi, as we talked about, will embark on this new term as president at the national people's congress. this is a video that they are showing in washington dc at the moment, as we are getting ready to hear more on the house select committee on the chinese coming is party. haidi: all focus on china at the moment, particularly as we get further indications when it

comes to this decoupling on issues of data security, issues of high tech, we will continue to watch that, given it has such enormous implications when it comes to global trade and economic activity. did we are getting one of those leading indicators when it comes to the health of regional trade, the korea trade numbers are just breaking. coming through with exports, seeing a decline of 7.5% year on year. a slightly -- not as bad as a decline expected. imports are rising by 3.6%. a little softer than expectations. that really does leave the trade deficit at 5.3 expectations were for a deficit of over 6 billion u.s. dollars. so much of the impact when it comes to south korean exports is being felt as a result of china and u.s., and also of the

broader global downturn. this is the sixth straight month that we have seen south korea exports shrinking with that sluggish global demand background. we did see at the previous month really extending what was a giant drop of 16.6% in january. shery: this is bloomberg. ♪

shery: here is a quick check of the latest business flash headlines. goldman-s shares tumbled. executive signals the bank is weighing a potential sale for consumer platforms which have lost nearly $6 billion since being set up. and goldman says it will take another two years for the new division to be even, offered an upbeat outlook for its wealth

and management units. credit suisse seriously british rules in the green so capital fair. they criticize the bank for its approach to risk management and says it made partly false and overly positive statements to the regulator. the bank has been ordered to take several remedial measures while enforcement proceedings will be opened against four former managers. haidi: shares rallied to a three-year high. executive chair told us exclusively how the bank will measure success. >> success is delivering on what you commit. we delivered on the 2019 investor day plans in spite of covid, the war in ukraine, now inflation. this is really important. that gives us a huge confidence that the model works.

it actually is providing good returns for shareholders. this is an acceleration of that delivery, this is really what matters. >> how much of this is thanks to raising interest rates because of the european central bank and the global economy, and how much is delivering on strategy? >> that is a great question. today, more than half is actually because we are improving every year and we will do much more in the next new year's improving our operating model. some of it is -- it is not healthy to have an economy with negative interest rates. if you are a saber and you get nothing, we are a commercial bank. we suffered more than most. we are giving mortgages out at 10 basis points. that was a year ago. some of it is a statement, but it is a normalization of interest rates, it is a normalization of how the system should work. more than half is what we are delivering in terms of a better operating model. did francine: i

know you are confident weeks ago when we spoke to you on earnings, are things actually looking better than they were? >> i have been saying this for months. the strength of it is so high, and the key number for us is employment. we are continuing to see very strong employment. that will change, how fast, i don't know. there is not a painless way of cutting inflation. and so, the question is, how high a price you pay? we have a lot of experience in managing and inflation countries, not just now but for years. the sooner you cut, the better. you have to take some pain. shery: speaking with francine lacqua. coming up, we will break australia's fourth quarter gdp numbers and look at the applications for growth and rba

policy with amp senior economist. this is bloomberg. ♪

haidi: we do have australia fourth-quarter gdp coming through on the bloomberg. 2.7%, bang on expectations. and really moderating from the

5.9% reading we had in the previous quarter. cpi year on year for january at 7.4%, softer than expectations of 811% -- of 8.1%. and of course in addition to that we have seen some mildly positive numbers when it comes to sydney housing prices, seeing an acceleration for the first time in 16 months. we are seeing that big factor driving on what is going on with the australian economy. this comes at a time as we are also seeing repricing when it comes to rba expectations, amidst so much political pressure on the rba governor and it comes to rising inflation and the impact of the cost-of-living crisis on ordinary australians as well as businesses. we have seen a commitment by the rba to potentially stay higher for longer, much like the fed. shery: take a look also at pmi

members across asia today. japan's pmi manufacturing coming in at 47.7, a slight acceleration than the previous month. malaysia has also improved. taiwan also very close to that expansion territory around 50. still at 49. contraction territory since may of last year. vietnam, indonesia and the philippines though in positive territory. haidi: let's bring in diana mousina, a senior economist at amp. great to have you with us. quite a mixed picture when it comes to the weakness we see across asia and those somewhat backward looking numbers when it comes to australia. what is your gauge on recession risk at the moment? it seems like this is a world that is repricing the fact that we perhaps got expectations from

central banks wrong, and there will be a lot of volatility ahead. diana: i think the risk for an us trillion recession over the next 12 to 18 months is quite moderate, maybe 30%. in the u.s. you would have to say the risk is higher because interest rates have been taken to a higher level than ostrow you. in my mind australian households are more vulnerable to the interest rate rises compared to u.s. consumers. we know that because of the way our mortgage market is structured. today's data to me looks quite soft and below the rba's forecast. i think we are getting close to the rba pause. maybe one more rate hike in march. i think the risk is the rba will pause and those market pricings for the cash rate won't be met. haidi: an interesting headline i saw, even if there is no technical recession, a lot of households will feel like we are in a recession. how much does that impact

confidence? diana: the confidence numbers tell us consumers are feeling terrible. concessionary -- in session like levels already. and at the same time, over the coming months, that impact to households will get much worse. we know about 880,000 fixed-rate mortgages are due to roll off on the rba's own data. i think there is a lot of downside pressure to come for the household sector. i just think the rba is underestimating the impact to the household. it will start to come back in the data. we saw yesterday with the retail sales print, there was a rebound in january but it was not particularly strong. shery: what are you seeing from the earnings season and what companies are saying about the state of the economy? diana: for the earnings season in australia it was quite mixed. on average, the average company

didn't perform as strongly compared to history, which is in line with the macroenvironment we're in, where there is obviously a lot of pressure on businesses and businesses are responding to that weakness in consumer spending. we are starting to see the pricing roll off as well in surveys. overall the corporate profit data has slowed but is not at recessionary-like levels just yet. which to me means the share markets have more upside in the short-term. shery: i just broke those pmi numbers across asia. february global pmi's looked better. are the signs more encouraging globally? diana: we started the year off much stronger than we anticipated. we can see that both across the economic data and inflation data, which started to turn up

both in the u.s. and eurozone. in australia today it looks like a straight -- like inflation started to slow. the global economy is holding up ok for now but i think it will start to show more signs of weakness over coming months as impacts of those rate hikes flow through to consumers. haidi: when it comes to the political pressure on central banks, is that an outside risk that worries you, particularly when you look at the immense amount of pressure on the rba? do you think this is a time where we need to have that consistency? diana: definitely, which is why i don't think we should be debating whether phil lowe should get his term ended. i think the better scenario for australia is phil lowe's term gets extended to see out this hiking cycle and to get inflation down, which is their mandate. i think there is a bigger risk

that if a new governor steps in we may get some unwanted policy changes which would take longer to get inflation down. however i also think inflation will disappoint to the downside this year. a lot of the factors that drive inflation i think are more transitory than people expect. we are starting to see the weakness in those inflation indicators come through like those of supply chain issues resolving themselves now. shery: diana mousina, senior economist at amp. breaking news the moment, china's country garden says the chairman has tendered his resignation, according to a hong kong stock exchange statement. he tendered his resignation due to his age. it will come to affect from march 1. the cochairmen has succeeded the position of chairman. we know country garden's funding access could be normalizing a bit.

the developer reportedly plant to start buying land again in local government auctions. we continue to watch china's property sector closely. let's turn to another check of the markets. >> half an hour into the session for tokyo stocks. korea out for a public allete a. australia online. pressure coming into the equities session. un surprising giving the lead in we had from wall street. the dollar, a bit of strength. the greenback capping its first month of gains since september. currencies in this part of the world also trading in the red. particularly watching moves we have in the treasury space, a slight retreat in yields. a lot of talk today, one of the most read terminal stories, is that caches -- that cash is king. the return on a six-month t bill, 4.1% in the price session. that is yielding better than you would get than the client

portfolio mixed 60/40. and the bloomberg u.s. aggregate bond index. we are seeing more cash coming into these instruments that are more risk-free. it is a real buy product, that aggressive tightening campaign from the fed, the most aggressive since the early 80's. that is removing any incentive for investors to look at a turn to more riskier assets. shery: let's get to vonnie quinn with first word headlines. vonnie: president xi jinping signaled an overhaul of government agencies. he told officials broader forms to agencies in the government and ruling coming his party will focus on key industries and sectors in an intensified manner. the npc is set to confirm xi's president breaking third term as president. a u.s. house committee has advanced several china related sanctions bills. the proposals approved by the

house financial services committee include plans to bar chinese officials from using u.s. financial institutions and support for taiwan's membership in the imf. it is a sign of increasing hawkishness in the republican-controlled chamber amid strained relations between washington and beijing. new zealand's housing downturn deepened in february as the rbnz continue to aggressively hike interest rates. property prices fell 8.9% from a year earlier. the average house price declined to the equivalent of $582,000 u.s. the central bank makes prices will fall to 5% from the late 2012 peak -- 2021 peak by early next year. a former ftx engineering chief pled guilty to six comeau charges as part of a cooperation deal with prosecutors. he's the third member of the collapsed cryptocurrency exchange's inner circle to flip against sam bankman-fried. he said he knew alameda research

was borrowing millions from ftx without customers' knowledge. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: still ahead, goldman sachs gives shareholders a report card on the ceo's performance as it tries to reset the narrative after a dismal 2022. details next. this is bloomberg. ♪ we all have a purpose in life - a “why.”

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>> there were some clear successes but there were also some clear stumbles. on the direct consumer businesses we found the more challenging. it begin clear that we lacked certain competitive advantage and that we did too much too quickly, which affected our execution. haidi: goldman sachs ceo david solomon in new york in remarks to investors. this is how the stock moved through the events, suggesting the troubled consumer business is weighing on sentiment. the positive spin did not work out. su: it did not go the way goldman management had anticipated. there we are. one of the things that management had attempted to do was talk about the great strength of the firm and how they would return to predictable

profitability in the years ahead, but investors were really focused on the bank's painful foray into consumer banking. and the strategic missteps it took. one analyst called the consumer banking the albatross that was around goldman's neck. it was the only bank in the red by the end of the day. that was the biggest drop for goldman since the mid-january earnings, which was a tough day for investors. the ceo david solomon, who you heard admit to some clear missteps, got visibly frustrated in a lot of the questions from analysts. they wanted to know the fate of what is left of the consumer ambitions, now called platform solutions. it is a collection of units the firm has blamed for almost $6 billion in losses over the past years. was not really clear if they would sell it. they did make clear that they expect it to break even pretax

by 2025. they also talked about the major cost-cutting that is going on. since the beginning of january, goldman has imposed a real precedent-setting job cuts. over 3000 positions cut in january. they now apparently are looking for an additional $1 billion in expense reductions. in terms of what they will do with what is left of the consumer unit, a lot of investors came away frustrated, saying it was not clear if they would sell it off. they hinted at further reductions. going into this report solomon said there were clear successes but also clear stumbles. they are not only dealing with investor dissatisfaction, there is some division inside the ranks at goldman as to how to go forward. the name of the game at this point is restoring investor confidence. this latest investor day designed to do just that did not

quite get the job done. haidi: we just had a bloomberg report showing banks have a long way to go when it comes to climate change efforts. su: this is the bloomberg nef report. the latest report shows banks need to make an even bigger effort, bigger low carbon pivot if they are to avert the climate crisis. that is despite spending billions. according to bnef researchers, the ratio of clean energy language -- energy lending relative to fossil fuels needs to hit 4:1 if we are to avoid the worst impact of climate change. jp morgan is the world's largest underwriter of energy deals, spending more than $42 billion on low carbon energy and almost $57 billion on fossil fuels. the report says even they don't have the ratio correct. the report shows the headway

made to date since the 2015 paris agreement isn't really putting the planet on the right track. they are nowhere near achieving the crucial goal of net zero admissions by mid -- emissions by mid century, despite the fact that collectively trillions has been spent in bonds and loans since the paris agreement in 2015. more work to do is the bottom line. haidi: bloomberg's su keenan. as goldman sachs wrapped up its investor day in new york we asked the chief operating officer about how the bank's strategy was received. >> well, we said earlier today to our investors that we for the first time in four years were able to bring all of our partners together for an off-sid e. we had mini versions of that during the endemic. for the first time a couple weeks ago we were able to get everybody together. i would say it was an extreme lee productive meeting, where

our partners walked out of that meeting very optimistic about the future, very optimistic about the investments we are making in the firm, particularly in the two market-leading businesses. and like many others have questions about what it will take to drive platform solutions to profitability. some of those questions spill out into the press. if you walked and interviewed our partners they are firmly behind the strategy and excited about what is in front of us at goldman sachs. >> i want to go back to a prior question. do you feel when it comes to the asset management business that you can do some thing transformative at this phase, especially when they have sold off so much in the markets? >> when you listen to what we said today to investors, we have plenty to do organically. we have to config and opportunities to drive will it share in our -- wallet share in our banking and management fitness. we have significant opportunities to continue to invest in our platform

operationally and grow out wealth -- our wealth management business. we made acquisitions. we bought a business last year in europe which has added substantially to our european footprint. active asset management has given us interesting esg capabilities. there are always things we can look to do. our appetite right now is most interestingly driven by the organic opportunities. >> the broader macroenvironment, great expectations have changed drastically. how has it changed the calculus among your clients for risk appetite? >> if you think about what was going on at the end of last year, there were significant concerns in three primary areas. one was the european energy crisis. two was china and zero covid. three was the performance of the u.s. consumer. in all three areas things have

broken to the high side. we did not see the energy crisis predicted. the european situation improved. nobody predicted that the zero covid policy would pivot very quickly to opening up china largely completely. that has changed materially. that is an upside surprise. the u.s. consumer has outperformed. shery: the goldman sachs president and coo speaking to sonali basak. coming up next, more on the violent swings in alibaba shares, now pushing to october levels. we have more on the $85 billion round ahead. this is bloomberg. ♪

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shery: mexico's president has announced that tesla will build a new plant in the northern state of monterey. he says elon musk has given environmental assurances, including the use of recycled water. he says musk was responsive, understanding of mexico's concerns and accepting of its proposals. a key supplier of apple products says rising geopolitical tensions could push them out of china faster than many observers anticipate. the deputy chairman of airpods's manufacturer says they are investing in a new vietnam plant

and considering an expansion in india. he says u.s. tech companies have been urging suppliers to explore alternative locations. haidi: let's take a look at alibaba shares, flashing a buy signal after a rout that cost investors $85 billion since january. bloomberg's chief china markets correspondent in hong kong. is this a technical story? is this a change in the narrative that the regulatory pressure story is pretty much done, the consumer is returning? >> alibaba is a proxy of the reopening trade because it is how most u.s. investors are playing it. this was a very good technical indicator in october. if you listen to in in october you are up more than 50% at one point. a good moment for the stock. if we look at the history and

china tech, one investor yesterday said that history no longer applies. what is interesting is shares are down at the oversold level, just before a key economic and political meeting which starts on sunday. that was the same say -- same case octoberin -- same case in october. interesting timing. i would say alibaba was the biggest reopening trade in q4. all those 13-f filings showed u.s. hedge funds were positioned for the stock at the lowest -- at the strongest level since 2015. it was an unraveling of those positions that has weighed on the stock more than any regulatory story. shery: asian results have largely disappointed. china seems to be doing better.

sofia: a mixed bag on china. specifically on tech, that was the key concern going into this earnings season. the fact that we do have some buyback stories, some shareholder rewards, ceos seem to be more comfortable about investing and spending. the concern going forward will be this price war competition, a race to the bottom. the market is shrinking, so these companies are spending more to grab market share. is that going to eat up margins? that is the story. china inc is doing better than expected. going forward, the china reopening story and whether these consumer stocks and the industries that rely on more consumption and economic growth are doing better, that will be a q2 story. shery: we are watching the open in china. country garden saying they will

have a sole chairman. airpods's maker says apple chinese suppliers are likely to move capacity out of the country. also computer hardware related stocks could move after hp maintained their annual guidance for cash flow. we are also watching aberdeen telling us whether the china rally has further room to run. those conversations coming up. in point asset management -- but the point asset management also joining in on february's china pmi's.

david: good wednesday morning