shery: you're watching daybreak:

asia. >> counting down to the market opens in tokyo and seoul. >> the top stories this hour, fed officials reinforcing hawkish stance. eurozone inflation running hot ahead of the ecb decision. elon musk outlines his latest master plan for tesla. bloomberg has a scoop when it comes to a major revamp at bridgewater. the ceo telling us it must evolve or die. we have breaking news crossing the bloomberg when it comes to the state of the korean economy. we are just seeing the industrial output numbers for january rising 2.9% month on month which is a stronger reading that the contraction.

again better than expectations of the fall of 12.7. we are also getting cyclical leading index exchange for january. a fall of 0.3%. we have seen is down were persistent pressures when it comes to the south korean economy particularly the vulnerability across the supply chain and trade side. the consumption investment data is also expected as well as we get a better indication as to how the broader economy is going. the keeper asian markets because so much of what we see in south korea is a leading indicator as to how trade output is across the rest of the region. >> this is an economy that is extremely reliant on china's recovery as well.

we are focused on that given the moves we saw in the pmi readings yesterday. exports not painting a pretty picture. we have the opening of the asx 200 at the start of the session. the question is whether it will hold because a staggered start, we have not a great lead-in from the u.s.. a lot of concerns around the outlook for rate hikes. that officials saying they need to keep it higher for longer. we will get to the moves and treasuries in moment, because a lot of the focus is what happens with china's recovery. some strategist are saying this is just china specific it will not reach as far as the u.s.. that was a representative from morgan stanley. some watching the kiwi dollar in particular, this did gained as much is 1% and we have goldman

sachs and among others saying it could gain as much as 4% against the dollar. shery: you mentioned mike wilson from morgan stanley saying how equities have to be driven by valuations in order to go higher. we need to see rates all income of the dollar also weakening. the repricing of expectation for fed rate hikes. we had more signals today from data that inflation is pretty persistent. we're talking about the prices paid component of the pmi rising again for february. we saw u.s. stocks and bonds all falling not a lot of movement in the future session as trading get started across asia. we are also seeing not a lot of movement when it comes to wti prices.

there was broader risk off but at the same time a smaller than expected gain in u.s. crude supplies hi. we had also seen the record exports. haidi: let's talk more about what is moving the markets. kathleen hays joins us also our executive editor paul dobson. we continue to hear the consistency from the fed leaning into the narrative that more needs to be done to fight inflation. >> consistency is definitely the word. fed officials whether they're going to do 25 or 50 whatever they're saying about the size or speed, they keep saying rates have to move higher. rafael bostick went out of his way today to write an essay about it. he says the funds rate will have to go up to at least 5.0 25.25% and it will have to stay there.

neel kashkari, says we have to slow inflation and so for the rate hikes have not done enough. here's what else he said. >> i'm open-minded at this point about whether it's 25 or 50 basis points. to me what is much more important is what we signal in what's called the dot plot. >> that is certainly true because if you think about it, every three months you get the updated summary of economic projections. that's where the 19 fed officials put in their forecast where they think the funds rate should be to get there. will get higher? the consensus., that's really important question. our economics team is pointing

out in today's purchasing manager survey manufacturing is you can see disinflation and goods is slowing. this is not what the fed wants to see. it's the green bar that is prices paid. it's going up again in fact it jumped from 42.5 to 47. the fed does not want to see it moving in that direction. shery: does it make sense that we're going to be topping the 4% level very soon? we briefly did it today. >> the argument is higher for longer in terms of interest rates and that will feed through into the yield on the 10 year and that's what's popping and above the 4% level. what we saw last time we got to around these levels and a little but hire was a huge wave of

buying back into fixed income. people are tempted by those yields particularly pension funds rebalancing. and into bonds as well. stick with one stick with the other they're moving the same direction. it will get harder for interest rates to go too much higher because there is still the pent up demand for people seeing those yields even in a higher interest rate even and higher inflationary environment. that's what's going to be the tension in the trade-off we will be looking forward to in the coming weeks. shery: what are we seeing in terms of price pressures across europe? >> they are not falling fast enough and if you look at german inflation today, it's picking up because the headline number went from 9.2 9.3. what's driving that is services. we're waiting now for the euro inflation numbers and equally

not exactly the most pleasing number that the ecb hawks are going to seek. the forecast there is on the headline great 8.6-8.4 year-over-year. the fourth consecutive drop in the headline we have seen per month. the core is expected to go from 5.3-5.4 year-over-year. as the wrong direction that's where services cost, that's where wages get into the picture. ecb bankers are also worried about what's going on here. one think there's no question that policy tightening must continue. mr. moeller expectations of rapid ecb cuts wishful thinking. those are definitely some of the

hawks, but it's not such a hawkish view now when you see inflation continuing to rise like that, when you see the ecb hikes not as aggressive as the fed, but they are still going. at 50, you have an issue that has to be dealt with. >> at the same time, we're hearing that going into the npc, they have been surprised when it comes to the pace of the economic opening and recovery. that probably means the need for new stimulus measures will be quite moderate. we have seen chinese risk assets rally in this week. does that mean we will see them cap if we don't get a fresh catalyst for the rally? >> so far it's a small rebound and very volatile in the chinese equity markets. the sense that the growth has been stronger at the start of the year and the recovery from zero covid has been greater than expected has been building. the numbers we got yesterday

seems to confirm that. yes you can read it one way if they stick with the existing target that there won't be so much stimulus coming through or maybe they get more ambitious and they push it up to a 6% growth target and back it up with further stimulus. shery: let's get to vonnie quinn with the first word headlines. >> a major revamp is underway at edgewater associates five months after the founder step down. is capping the size of its flagship funds putting more talent into ai and machine learning. the ceo told bloomberg $138 billion hedge fund must evolve or die. president joe biden says he will veto a senate measure that seeks to block a labor department rule on investments.

the labor department rule allows private sector retirement plans to consider esg factors when considering investments. u.k. government bonds rallied after a governor cast doubt on future rate rises. the greek prime minister says human error probably caused the country's worst train crash in decades. it killed at least 38 people and left dozens more injured. the transit manager -- administer has resigned. 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. haidi: still ahead taken by

surprise china's rapid rebound has shocked even top officials and it could put a lid on further stimulus. coming up, world's largest hedge fund is undergoing a major overhaul. this is bloomberg. ♪

haidi: let's take a look at trading in u.s. futures. this after rousseau the 10 year yield topping 4% as the bets on a fed rate peak seem to be increasing the yield on the 10 year rising above 4% for the first time since november.

expectations as to where it will go topping 5%. joining us now is a portfolio manager. great to have you with us. does this -- are you seeing opportunities emerging in fixed income and credit? >> where not really concerned about the 10 year yield moving up to 4%. i think what we have conviction on is not just the level of yield, but the volatility of the treasuries which have stayed lower than what we have seen last year. we know that at some point this year, the fed will reach the terminal rate. they will try to assess the unprecedented pace of tightening

they have done last year. it will remain subdued compared to the levels we have seen last year. this environment creates favorable environment for credit. we are long credit spreads especially em. we see spreads there at the moment. that's the part of the credit, the fixed income space that we are overweight in right now. haidi: especially when it comes to the carry opportunity, what are you looking for when it comes to emerging markets right now? >> we like emerging markets especially with the china reopening. we have seen in the past that

when china pushed for fiscal policy, pushed for growth, we have seen emerging-market sovereigns favored. we think that even the level at the moment in terms of credit, we are seeing about 450 basis point spread over u.s. treasuries. that is on a historical basis very high. this part of the fixed income very attractive. we are favoring em out of all the credit space. shery: this chart showing how government bonds posting the worst month since september so we saw the higher u.s. yield lowering funds away from developing markets. where do you see those opportunities across asia? >> we think the china reopening will really impact em. also if you look at the regional

breakdown of em and the performance that we have seen within the em space, we have seen a positive return in asia as well as europe. europe is doing pretty well right now. last year, we had a pretty negative impact from the invasion of russia to ukraine. that negative impact is slowly recovering in central europe. we see especially within em central europe and asia will benefit this year. shery: in risk assets when you have yields rising, what do you like right now? >> we are neutral on duration. we'll have to see how far the fed will have to hike. we do think that interest rates in general will stay high for

longer time. in spreads as i have shared before, the volatility will stay low. we are looking at 20 basis points away from last year's high on 10 year treasuries but if you look at the move index, it's at a much lower level than what we have seen last year. spreads typically move along with the treasury volatility. if that remain subdued, we think there will be opportunity for the spreads to tighten in the near term. shery: good to have you with us. you can get around up of all the stories you need to know to get your day going in today's edition of daybreak. terminal subscribers go to dayb . this is bloomberg. ♪ was also the first time you hit this note...

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shery: we are counting down to the start of trading in tokyo and seoul. in japan the finance minister releases capital spending data for the fourth quarter with forecasting pointing toward a slowdown in fixed investments by the government and private sector. investors keep a close watch on monetary policy there. and official data on consumer confidence for february. a bloomberg survey showing improvement is expected. in south korea, financial markets are coming back after midweek national holiday. investors are watching and e-commerce giant, it is disappointed with the sales numbers.

keep an eye on sm entertainment after regulator signaled an investigation. haidi: elon musk says the next phase of the company's growth will be built around sustainable energy future. investor is have been gathering to learn about the long-term expansion plans. ed ludlow has been watching for us. as usual, elon musk talking about what he wanted to talk about his vision. what did it sound like and what was the reaction? ed: the reaction is the stock down 3% after hours. we went into this knowing it was a sell the news type event. this is classic elon musk. the end goal is a decade away.

it is possible to have a future where the entire planet is run with sustainable energy. there was a real emphasis on the benefit of quickly electrifying. one point made was that when you think about supply chain and mining of metals, the level of mining would be less in a fully electrified economy versus the economy we have today. it's a sell the news event and that we haven't had any big splashy announcements just teases that there are products in the works and those will come at a later date. shery: it was supposed to be also about a focus on scaling. did we get more on those gigafactory's? ed: it supposed to be a focus on scaling. we have not yet had an official confirmation about mexico.

i know you are tracking emerging markets closely. you would've seen the headlines coming out of mexico that according to their politicians, they have secured tesla to build a gigafactory in north mexico. that feeds into the cell the news narrative or lack of announcement. when it comes to scaling, the emphasis has been on why we need to scale. the energy requirements, not just in terms of building electric vehicles but also an energy storage and the work that tesla is and can be doing in the future to electrify anything from offices to homes. they talk about perhaps getting into heat pump manufacturing. it has been highly technical, tesla says it's going to release a white paper but nothing for those who just want to hear about the cars. that's where a lot of retail investors focus is right now. shery: no wonder we are seeing a downside and after hours trading. you can get more on tesla

investor day from bloomberg's expert editors. arm has decided against selling shares on the london stock exchange for now dealing a blow to u.k. politicians who are lobbying the chip giant ahead of its ipo. sources say the company will instead focus on a listing in new york for arm later this year. salesforce says revenues will be higher than analyst estimates as it focuses on boosting profitability. the company has reported that sales for the three months of december rose 14% to higher than expected $8.4 billion. the software maker is facing pressure from activist investors to boost margins by cutting costs. we will be breaking down the salesforce numbers with the chairman and ceo later today. that just after eight a clock

a.m. hong kong, 7:00 p.m. new york. this is bloomberg. ♪

>> it can be seasonably positive or negative but what we are seeing over the past year is we

are in an earnings downtrend. there is a presumption that even though the economic data has been better than expected, that the earnings declines are now over and that's not what we think. we think worst is probably still ahead for most companies. shery: now let's turn to a bloomberg scoop. nature changes underway at bridgewater associates. cutting jobs as well as looking to expand in asia. these changes coming just five months after ray dalio turned over the reins. >> he left a huge footprint on the firm. it was the first hedge fund to become a behemoth. at one point it was the most profitable hedge fund in the world. what bridgewater does gets a lot of attention. he has passed the baton onto younger generation and these

changes have a lot to do with the key flagship funds. pure alpha and the all weather fund. new management is looking to cap the size of the funds which would be a major shift in strategy. bridgewater now believes it can deliver better returns with a smaller leaner fund. they will also be pouring money into ai, equity, and expanding their presence in asia. also cutting jobs. 100 jobs out of a staff of 1300. they want to redeploy some of the new initiative. in terms of the new ceo, he says you either have to evolve or die and these management changes have been taking place even before ray dalio started to leave. one of the things they want to do is to take big swings. they said we are not dabbling

here. they really want to supersize the returns of the fund. one of the things he is also embracing is something he calls a flywheel in terms of bringing in new talent to employ the strategy changes. haidi: there really is a focus when it comes to asian expansion also. >> yes there going to start by doubling the size of their singapore office and they are doing that for a couple of reasons. want to be closer to a lot of their clients. they also want to be able to offer their american and international clients more exposure to better products in asia. for all the political dissent we have seen take place between the u.s. and china, one of the things the hedge fund community in general has embraced is asia is the place to be right now and china's economic policy has an outsize impact on the world's finance and its bond yields and fact, one of the things that

bridgewater made clear at the beginning of the year is they were strongly bullish on short-term chinese debt. it had a lot to do with a high single digit returns for the all weather fund. haidi: let's get you over to how the markets are trading just about half an hour into the session. annabelle: we are all about the treasury 10 year yield in the session today given that we sought rising above 4% in the intraday session on wednesday the u.s.. that was after we heard from a couple of fed officials the likes of the elanna fed president rafael bostick said there's a case to continue pushing more hikes above 5%. we also heard from the minneapolis fed president neel kashkari that we are not seeing the effects of sustained rate hikes in this is -- services sector. this indicates to us that

perhaps we won't open to the 4% level with the cash market starting half an hour from now but we are think the repricing action continuing to happen in australia and new zealand. it's particularly noticeable in the kiwi space. this puts downward pressure on equities and that's coming through in the session in new zealand. futures for japan looking like this. china is very much in focus as well given the rebound we saw, the signals that the recovery is on a surer footing. that is a big boom to the likes of economist in australia and new zealand. shery: sources telling bloomberg bet china's faster than expected economic recovery as seen with

robust pmi numbers have surprised even its top leaders. for more let's bring in stephen engle and hong kong. given the strong data, how does that affect policy decisions ahead of the npc start this weekend? >> there was a lot of speculation that china would mean more stimulus, but a lot of the market participants and government leaders according to sources were surprised by the one set of numbers that we got including the services and manufacturing pmi essentially all confirming that economic activity and manufacturing, services, the consumer, even housing sales picked up for the first time in 20 months. all this combined, the set of data lifted the markets and sentiment essentially giving optimism ahead of the national people's congress that starts this weekend.

there were four main goals of the national people's congress. in addition to this broad reform that xi jinping is talking about, essentially the number one priority would be to get growth back on track after 3% growth in 2022. there could be a target set of around 5% for this year but with the pmi numbers, there was a lot of optimism. maybe they have already gotten it back on track. the number two goal would be to restore confidence in china and the chinese policy coming out of covid zero and the reopening story. number three would be avoiding buildup of risk. essentially, these government officials according to sources have projected that the infection wave after they dropped covid zero would probably last through february and into march. it turns out the data shows that most of china got infected with covid by the end of january.

what happened at the end of january, we had the lunar new year holiday. coming out of that holiday, we had pent up demand, a waning infection wave across the country and economic activity picked up like investors. we saw the manufacturing sector it saw its biggest pickup in activity in more than a decade in february. housing sales rose, consumer activity climbed. all of that giving optimism. again, i caution there is in tip demand in the system so going forward, will this meant to him continue? or will the market be disappointed by some of the structural reform measures that we talked about yesterday that xi jinping is going to carry through to government agencies and give the communist party more say in policymaking as well as consolidating decision-making at the very top. haidi: or will the market be

disappointed by the fact that if the reopening the economic rebound is going better and faster than policy makers had expected, does that mean we aren't going to get much beyond modest stimulus measures? >> the hope for the flood style stimulus probably has waned. i think even on friday, the pboc indicated there will be a flood style stimulus so a big economic package probably not in the cards but analysts we have spoken to expect monetary and fiscal policy will likely remain supportive through the first part of this year although chances of the big stimulus package that we talked about is seen as low. the pboc likely to refrain from cutting interest rates sharply this year and that goes back to the third target or third goal of the npc that i mentioned which is avoid the buildup of natural risk. avoid stoking inflation and of the issues that they had

regulatory control measures over the last couple of years. again, accommodative politics -- policies but not the big bang stimulus that somebody expected given how dire the economy had been. the chinese economy at least this one set of numbers show some confidence that there is momentum in v shape recovery for now. shery: coming up next, we will be speaking to the university of melbourne about the upcoming g20 foreign ministers meeting in india. this is bloomberg. ♪

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what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh vonnie: a chinese banker has reportedly been detained since february. wall street journal is saying he is being held in relation to a corruption investigation into a former executive. it is unclear if he will be formally charged. the united states is reportedly talking to allies about possible new sanctions on china if beijing supplies military support to russia's war in ukraine.

the early-stage consultations are seeking support a number of countries including those in the g7. antony blinken says he has no plans to meet with diplomats from russia and china at this week's meeting. he says reaching out to kremlin officials would be pointless because vladimir putin shows no interest in negotiations over ukraine. he added that support for moscow undermines the legitimacy of its recent proposals and of the war. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. shery: we will be delving into the g20 for meetings. our next guest says one of the pressing issues is how to combat fuel and energy prices but discussions remain high.

what can we expect from these new meanings by foreign ministers? >> as you say, the lack of consensus at the finance ministers meeting and significant evidence between the most powerful states, that is a significant challenge this week. they have on the agenda some of the most pressing issues we are facing. what the g20 leaders meeting in november called a wave of successive multidimensional crises. we have energy, security issues, food security issues, rising inflation rates, global recession. in the midst of this, increased

tensions or hostilities between some of the world's most powerful countries. i think we can anticipate that india will be playing a strategic role of trying to broker some sort of agreement but i don't hold out high hopes that it will be a panacea to these global challenges we are facing. shery: how much more complicated is the fact that you have allies and the realignment of the geopolitical world powers right now? at the same time, you don't even have allies agreeing. one of the key issues is india's purchases of russian oil. >> yes. we have these various alliances. india prefers for itself a multipolar world order that will allow it to maneuver between several and diverse poles wherever it's interest lie. but it sees russia as a

dependable partner and it wants to maintain that relationship in spite of having a close ally in the united states and not wanting to put them off side especially since russia's invasion of ukraine. at the same time, india's concerned about china's rise and the threat china might pose in asia with its border skirmishes. i think what we can take away from all of this is the future of rules based international order is really facing some strain. there's not just these powerful challenges from states like russia and china, but a lot of the global south, india included, doesn't see this erosion of the western backed rules based order as such a bad thing. haidi: there is opportunity in the erosion of what a lot of

these emerging nations might see or certainly china sees as hegemonic dominance by the superpowers. in this volatility and uncertain environment, what is the role of middle nations? we have seen singapore perfect that model. there has been talk about australia being able to do better to be able to be the middle nation that has a lot of diplomatic impact. >> yes what we are seeing in the face of this rising competition or challenge to the western hegemony, countries are playing a more significant role in brokering global politics. stakes -- states recording these middle powers and the middle powers are also wanting to rest some of their national interest out of these negotiations.

one of the things that i think we need to be wary of in that role is the way in which it is reflective of a retreat into nationalist sovereign based interest agendas rather than consensus-based international agenda being the focus. the u.n. has already pointed out how these trajectories of international relations are threatening the realization of sustainable develop goals. haidi: what do we really need to look out for for the rest of the year when it comes to the changing dynamics particularly when it comes to the u.s. and china relationship? as the economic recovery grows, will we see more consolidation of the management of the country under xi jinping, more

externally assertive beijing again? >> i think we are starting to see some signs of a more externally focused beijing. we saw china recently offered to broker the peace deal or a peace deal between russia and ukraine. this of course has not been taken seriously by many of the western states but i think there has been evidence of an increased role and commitment of bilateral and multilateral global diplomacy from china. i think this is also evidence of their recognition that there may be scope at this point in time with this perhaps erosion of a western led international order for them to step up and offer an alternative vision of what a global order could look like. >> always great to chat with

you. coming up next, more details in terms of why japan is rolling out more incentives to convince companies to pay their workers more. this is bloomberg. ♪

we all have a purpose in life - 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? shery: out of japan we are

getting the capital spending numbers. you on year growth of 7.7% for the fourth quarter. this is decelerating from the previous quarter still higher than analysts expected. we are talking about company profits you're on your shrinking for the fourth quarter instead of our performance we saw in the previous quarter. perhaps not that surprising given that in the previous quarter, we had significant weakness in the japanese yen which made manufacturers profits jump. for the fourth quarter, we are getting the capital spending numbers. you're on year, 7.7% growth coming in above analyst expectations but still easing from the previous quarter. >> as we continue to contribute to this theme of peaking inflation in japan, government

epistles -- officials see wage hikes -- let's discuss all of this with our asia government reporter. spring wage negotiations, wage inflation and how to get it up, these are evergreen topics when it comes to japan but it seems like fun i there is some progress being made and more incentives to push it to happen faster. >> yes we certainly are saying if we look at the headlines the big companies instituting huge pay increases which is obviously good news for the people that work there. the problem for the japanese government is that most people in japan don't work for big companies. was to them work for small and medium-sized enterprises who have very thin profit margins if any at all. persuading those employers to lift wages is a very different matter.

and something the government has to work harder on it feels at the moment. shery: what are we seeing in terms of the government trying to help those really struggling with increased price pressures? >> what we have seen the past is things like for example tax breaks for companies that raise wages which is great for companies that do pay tax but a lot of the small companies make so little profit that they don't pay tax. offering them a tax break doesn't really help. there are subsidies now introduced for companies that raise wages even if they are in the red. is another interesting system has just been introduced which is a system where small subcontractors can name and shame the large companies who have refused to negotiate with them on prices. one reason why the small companies don't make profit is because they are being squeezed by their larger customers and

therefore don't have much leeway to raise wages in their own system. the theory is if these companies are given a bit more leeway by their big companies, it will have that leeway to raise wages. shery: there was some of the ways japan is coping with rising price pressures that hasn't happened for decades. here's what we are watching when trading opens in japan and in korea. softbank is in focus on news that it's arm unit has avoided selling shares on the london stock exchange for now. the u.k. competition and markets authority has cleared korean errors bid to acquire a small arrival. japanese department store

operators may be active following february sales data. coming up in the next hour, the market risks they are watching in the u.s. and asia. the salesforce ceo marc benioff joins us. plus one company says when the expect macau's gaming to return to pre-pandemic levels. market opens in tokyo and seoul are next. this is bloomberg. ♪

>> this is daybreak: asia. we are counting down to asia's

major market opens. more headwinds coming from the wall street session. we continue to see signs of more inflationary pressure. will a strong chinese economy perhaps sentiment and optimism. haidi: yields pushing higher, rate expectations and inflation expectations pushing higher. we could get disappointment from china. we may not get that strong stimulus that the market is counting on. the china reopening has been stronger than expected. annabelle: we are very focused on how the 10 year yield comes online here. still holding below just a fraction. the 4% level in the intraday session on wednesday. it's not a question of if but when.

we heard from fed officials reiterating their hawkish stance. the atlanta fred present -- fed president saying there's a case for above the 5% level well into 2024. you heard from the minneapolis fed president who likewise says he's a little bit concerned that we are not seeing the effects of tightening showing up enough in the services sector. it's an externally different story to what we see in japan. we will have the core reading out for japan on friday. that's expected to show inflation falling from the peak. it does complicate any investor who is trying to gauge whether the boj is right about the path of price pressures. we could see the yen moving back to the 145 level. korea opening. we did have more signs of economic weakness coming into

the economy. we saw january industrial output numbers contracting to 12.7%. that was worse than what economists had been projecting. there worth reading was 12.5%. quick check on what's happening in australia. this is being driven from the moves from china given the stronger economic readings that came through. energy materials are leading the asx 200. wti sitting fairly frat -- flat. better export numbers in the u.s.. haidi: let's -- shery: let's bring in charu chanana. good economic news out of china is translating to bad news for the markets on lesser expectations for more easing. what do you think? charu: absolutely. i would still say that the good news out of china is what the markets needed.

globally, we are seeing inflation concerns not dying out as was expected by the markets towards the end of 2022. the only saving grace for the markets really is coming out of china, even if it means more easing, potentially more policy measures to support those industries that have really been beaten down over the last three years. mostly consumption but also looking at the property sector as well as internet companies in china. they need a lot more support. what that means for the market, it might be a little bit off pressure for the markets. we are coming from a valuation where these equity markets in china and some of the other acer countries as well have been beaten down so much over the past few years. the resurgence of activity levels brings back a lot of

interest in these chinese markets. shery: how much of that good economic news is going to be inflationary for the world? haidi: that is something i'm quite concerned about. as we just touched upon, the disinflation rhetoric that started to kick in has been trashed again. i've been saying this since last year. inflation has to be high for longer. that obviously is underpinned structurally by the mismatch in the labor demand and supply that we have globally. the china reopening story adds cyclical upside pressure as well because of the sheer amount of demand that china can create for commodities in particular. demand is something that we are looking at. a big uptick there. that can feed into inflationary pressures as well. from a structural standpoint,

china's population going down. these labor supply issues for the whole of the world will still continue. i think the china story is a big factor that will continue to play into our inflation expectations. haidi: how does that play into your investment decisions? what do you like at the moment if you are looking at things as an inflation hedge, things that have that exposure to the chinese consumer? charu: great. that's a great question and a pretty broad one. let me touch upon is much as possible. when you are trying to hedge portfolios against inflation, it's important to keep a balanced portfolio and some inflation protected bonds to it. something of that sort. if you are more focused on getting exposure to that china your -- reopening story, there's obviously interest in chinese and hong kong stocks. there's a lot of interest coming in asian tourism stocks as well.

as china outbound tourism picks up, we are potentially thinking that asian tourism and hospitality sectors will be the first few to benefit because the number of flights to the west are still pretty limited. the other very interesting piece of this puzzle is the european stocks. many investors in asia are still not investing enough in open markets which present an inflationary environment. you have value rich companies plus payments from china reopening as well. haidi: always great to chat with you. let's get to vonnie quinn with the first word headlines. vonnie: thank you. the united states is talking to allies about possible new sanctions on china. if beijing provides military support to the war in ukraine. writers saying the early-stage consultations are seeking support from a range of countries including those in the

g7. the biden administration has sanctioned several chinese companies it accuses of aiding the russian military. antony blinken says he has no plans to meet with diplomats from russia and china at the gathering of g20 foreign ministers. vladimir putin shows no interest in negotiations over ukraine. lincoln added that beijing's support undermines the legitimacy of its recent proposal to end the war. a major rebound underway at bridgewater associates. five months after dalio stepped down, it's capping the size of its flagship funds, pouring money into an -- artificial intelligence and machine learning. the ceo told bloomberg the $138 billion hedge fund must evolve or die. a chinese banker has been detained since february. the wall street journal says

they are being held in relation to a corruption investigation. the report says it's unclear if he will be formally arrested and charged. china resin sounds said he wasn't -- cooperating in an investigation. the great prime minister says human error caused the country's worst train crash in decades. the government is investigating the head-on collision between a passenger and cargo train which killed 38 people and left dozens injured. the greek transport minister has resigned. the stationmaster has been arrested. global news powered by more than 2700 journalists and analysts in more than 120 countries. haidi: still ahead, salesforce shares jumping in late trade on an earnings beat and strong outlook. the chairman and ceo speaks to bloomberg's emily chang next to explain why they are planning to step up buybacks. this is bloomberg. ♪

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investors. joining us now live is marc benioff. thank you as always for taking the time. big beat on margin outlook. stepping back buybacks. laid off 10% of the workforce. what else is factoring into this forward-looking outlook? marc: it's great to be with you as always. i'll tell you that we are still just getting started here at salesforce. we have reignited our performance culture. you are right. we've taken drastic actions. you can see the results. just incredible. we really made an incredible transformation here at salesforce. 29.2% margin for the quarter. we had record revenue levels. 8.4 billion. we are one of the biggest offer companies in the world. you saw the record cash flow for the year. these incredible financial performances are the result of the great work of all of our employees here at salesforce.

they've done a great job. we are continuing to deliver great results for our shareholders as you can see from the results today. emily: shares are up 18% after hours. you are in a very unusual situation here. you have five different activist investors whose taken stakes in the company. they have big demands. i know it's not fun when you have to lay anyone off. will there be more layoffs? marc: we are right. we have all these great new investors. there was an atypical moment in the market last year when a lot of folks had a -- could enter the equity. i enjoy listening to them and getting their ideas. i love learning from everyone. one of them has been incredible for us. he's been around for a while at salesforce. last year, he was a dream force. you saw him.

he was sitting there with his founder and incredible people. when we started talking with mason to hear his ideas on distribution strategy and pricing strategy, he's on the board of microsoft for five years so he has incredible expertise in our industry which is really special. we would love to bring him onto the board. that's what we did. that's a great example were activist can lata -- add a lot of value to your company. i could not be more thrilled. emily: what about the layoff question? are you expecting more headcount reduction in the future? whether it's because of the activist investors or a very difficult global economic situation that we all find ourselves in. marc: let me explain to you the real story. in calendar year 2021, the tech industry including salesforce

had the best year we've ever had. you know that. everyone had a record performance including salesforce. the fourth quarter of fiscal year 22, that was like our best quarter of all time. you know what the story is of 2022 as well. we started to see unusual market conditions, currency changes. we started to see inflation, dramatic stockmarket reduction. all these various things. that's when 2022 was not like 2021. all the things we did to invest for 2022 that never really showed up. you are right. we have made changes to our company to reflect current market conditions and to really make sure that not only do we consider to have -- continue to have great performances, but it reflects where the market is today which is a more measured by an environment. overall economic condition that we are in right now.

salesforce continues to deliver the numbers as you can see. emily: you disbanded the mna committee. mna has been a huge part of your history. does that mean no more m&a? emily: you -- marc: you are right. we've done great acquisitions in the company. incredible success stories. exact target from almost eight years ago. indianapolis. one of the biggest tech employers in indiana. tableau, the amazing business intelligence platform is now integrated with our data cloud. slack, which i know that you use every day. these are great acquisitions. as we really focus on our performance, profitability, the re-prioritization back to being a core crm company, it was time to put the mna committee on ice. mitigate what we've been doing. it's part of the transformation that i've put into the company

in the last 90 days. it's why you are seeing these great numbers in the quarter. emily: the criticism of activists is when that you look at the performance of their funds, it isn't much better than the companies that they are targeting. when you look at these investors that you are working with, how are you thinking about whether you should be taking their advice? marc: it's hard to compare salesforce to any other entity or equity. since i took the company public in 2004, we've delivered more than 4000 for our shareholders. i never compare myself to anyone else. our performance has been so incredible and widely recognized by the most important business entities all over the world. i can learn from anyone. i maintain that the japanese call the bennett -- the beginner's mind.

you have every possibility. in the expert's mind, you have few. when you are dealing with folks like this, you have to have an open mind and heart. you have to be ready to listen because a great idea can come from anywhere. emily: a lot of well-respected people have left the company including your former co-ceo brett taylor, stuart butterfield. what you say to the folks who are worried about a talent drain? maybe the company or the person running it is the problem. what is the succession plan going forward? marc: you can take a look at the performance of the company to see how it's doing. i don't think there's a bat -- software company with a better bench product. i guess i am the highest performing ceo of the last two decades if that's your question. you could ask harvard or yale to comment on that. you know the numbers yourself. i'm teasing with you.

the reality is thatyo follow thy yourself. we have that person here in salesforce. we continue to develop and grow all of our talent. emily: we are getting headlines in from elliott as we speak. they are saying there's been substantive dialogue, that the announcements today show progress. so they seem to be liking what they see. i want to ask you about schreiber asset management. we've talked about your passion for social causes for many years now. they are saying that slamming the wokeness of the company. how do you respond to that? marc: you know, i have my

employees backs. them of these folks have political agendas. that's unfortunate. you can see it when all of a sudden there's a level of discrimination that shows up in a state or a country, or by some action our employees did not warrant. it's our job to be there to say, leave our employees alone. we will be there for them. we will support them. we will do whatever we can for our entire employee base. you know the word very well, ohana. you are hawaiian yourself. that means we are there for everyone in our salesforce family. that doesn't suit everyone because there's folks that want their way of the world. we just want to make sure our employees get the love and respect and dignity that they deserve. that's always our highest priority. emily: i'm glad you mentioned that. we have hawaii in common. you've used that word many times

over the years. you also have critics taking shots at you for using it at all. how do you think about balancing not getting distracted from an activist fight, not losing what makes salesforce and the salesforce ohana special as you go through this process? marc: i think you were born in hawaii, right? emily: born and raised. marc: how do you feel when i use the word ohana? do you feel it's appropriate and correct? emily: i don't mind it. but i'm not an activist investor, so. marc: [laughter] i think they are making a lot of money today. i think that's what they like. these people are money driven. they like to make money. that's what they do for a living. it's all they do. that's great. that's appropriate. we know that business can be the greatest platform for change and there can be a higher purpose to your work, why you go to work,

why you put so much time into your work. i know it's true for you. your work as a platform. our work is a platform as well. we believe in the work and business as a high purpose and we will continue to add as much value as we can into the world and to support our local communities as well, whether it's children's hospitals here in san francisco, public schools and parks. we believe all of us are ohana in that our local communities, employees, customers, partners, all of them are key stakeholders and we are trying to practice stakeholder capitalism. we believe this is the true practice of business. emily: you mentioned larry ellison as a mentor. i remember the days when you were staunch competitors and more enemies than friends. i want to hear that story. who called who? are you having my ties in hawaii? marc: well, yeah. we have a lot of hawaii

commentary here. larry owns an island so there's a connection there. i first went to work for larry ellison in 1986. he's been an incredible mentor to me. friend. we are using oracle's margin playbook. he's been mentoring me for 40 years on how to deliver a great performance. i couldn't be more grateful to him and his entire team as well. they are great partners. they always have been. he is. whether he is my partner, my mentor, number one he's my friend. emily: when you look at the numbers, this could be the slowest year of growth for salesforce ever. you've been at this a long time. how do you think about getting growth back? how do you feel about what we just heard?

they are liking so far what you see. marc: who doesn't like what they see? we just delivered a 17% growth number. we are delivering more than 10% growth this year plus extra ordinary margin growth. we delivered over four points of margin this year and 4.5 points of margin projected for next year. there's a lot to love and the cash flow is just extraordinary. all while delivering record low attrition which speaks to our customer success and innovation. there's a lot to love and these numbers. all of our shareholders are obviously pleased with what's going on. i am as one of our larger shareholders myself. i think that's the most important thing. not just great performance with great values. not sacrificing who we are to make this happen. emily: we will keep watching.

thanks for taking the time after the call today. marc: it's always great being with you. aloha. emily: awesome. a low hot indeed. back to you. haidi: if -- shery: if you missed any part of that conversation, our interactive tv function on the bloomberg. you can dive into any of the securities bloomberg functions that we talked about. become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. check it out on tv . ♪

>> a quick check of the latest business flash headlines, deciding against selling shares on the london stock exchange dealing a blow to u.k.

politicians were lobbying the home-grown ship china head of its ipo. the softbank owned company was focused on a listing in new york later this year. tiktok says it will automatically impose a 60 minute time limit for units -- users under 18. it will require younger users to enter a password if they want to binge more than a hour but the limit can be removed. tiktok is facing intense global scrutiny that could lead to the app in band and some of its biggest markets. much more to come here on daybreak asia. this is bloomberg. ♪

>> getting south korea's pmi numbers for the month of february is coming in at 48.5, which is at the same level as

that was in the month of january. remember, it's been in contraction territory since shall i of last year and we have seen that for february the export numbers weren't really great. this is perhaps not that surprising that experts stop deepening last month, slowing global demand. that plunge in chip prices really weighed on south korea. >> when it comes to australian building approvals in the broader construction of properties, we are seeing the impact of rising rates in that housing downturn as well. take a look at building month on month in january seeing a 27.6% decline. so really reversing that 18.5% gain that we saw in the previous month of december. and we are seeing that much, much worse and expects -- expectations of a 7% contraction. private-sector also reversing that game. a decline of 13.8 percent, much worse than expectations of just

over 2%. an increase in private dwellings was seen as the price in december that contributed to the headline number. they even as we see property prices in sydney and the latest reading seen the first gain in 13 months, bloomberg economics really expecting the broader housing slump in australia still has further to run as the full lag effects of the hawkish rhetoric and of course the string of right -- rate hikes continues to weigh very let's get a market reaction. annabelle: we see asian stocks coming in we are half an hour into the session referred tokyo, korea australia and new zealand. you can see we are eking out fairly modest gains and that's down to the china rebound story that's much better than expected pmi numbers coming in yesterday. manufacturing services also better than expected, housing sales looking stronger. that tells us that the rebound is coming in on a better footing. and that is helping those economies that are more exposed to china trade, the likes of

korea. we could see the korean won climbing 1.3% and coming back down to that key 1300 level. other currencies likewise including the offshore yuan climbing around 1/10 of a percent. commodities in the green. what is interesting is when you take a look at what is happening in the debt space is a bit of a different picture here, and that comes down to the moves that we saw in treasuries and the prize session because on the databases we saw the 10 year yield rising above 4% we could see here that continued repricing around where the fed ends up, the likes of the atlanta fed president saying there is a case for rates to stay above 5% on a sustained basis. minneapolis president hasn't seen the effects of tightening showing up in the services sector. if you change on now, we could take a look at what else is interesting and something else at the m live team is pulling out. garfield renders -- garfield reynolds looking after your gaging. that is showing relative calm.

we could see this line in blue, that tracks around the -- rather wide. it does track implied volatility for bonds, global currencies, u.s. stocks. we have seen a bit of a move higher. we are still far away from the moves we saw back in 2020. so that does tell us, perhaps stock traders could be a little bit more resilient than first expected. shery: let's turn to tesla because ceo elon musk says the next phase of the company's growth will be built around a sustainable energy future. investors have been gathering up the carmakers factory in austin, texas to learn about the long-term and's expansion plans. ed ludlow has been following the investor for us. so far investors don't seem too happy with what they've heard. >> this is certainly a sell of the news event, those declines in after hours trading really accelerated to a 5% mark. we have an important headline crossing the bloomberg terminal.

elon musk have confirmed that the next factory will be in northern mexico and monterey. you will remember that mexico's president had kinda revealed that news 24 hours ago, so we expected it to sell the news kind of thing. there is a lot of focus on the big picture, not a lot of granularity, given that it's a subject area, i thought his comments around artificial intelligence were interesting, so why don't we take a quick listen to what elon musk had to say. yuan: as we solve real-world ai, i don't think anyone is close to tesla on solving real-world ai. annabelle: this is -- ed: this is a part of it, selling the company to potential new employees, new talent, beyond that, incremental updates and part of that you see that playing out in the shares. haidi: bloomberg's ed ludlow. you concern for more on this story on the bloomberg.

more on tesla investor day. tliv is where it goes in the country and analysis from our team of expert editors. let's get you to vonnie quinn with the first word headlines now. vonnie: -- in fact, i will bring you those first word headlines. the boe governor -- over the pace of further interest rate rises. some further increase in rates may turn out to be appropriate but nothing is decided. they led the advance with the yield on two yield notes falling as much as 11 basis points. bloomberg's been told top chinese officials are surprised by how quickly the economy is recovering suggesting that the government may be restrained when it comes to blowing out new stimulus measures this year. also says the infection following the abrupt end of covid is more swiftly than senior officials expected, allowing the economy to rebound faster. australia has quietly blocked a big by the chinese company to increase ownership and rare

supply and minerals. singapore base applied last august to increase its ownership to 19.9 percent, almost doubling at stake. they issued an order last month, blocking the move and a possible test of warning diplomatic ties. the greek prime minister said human error probably because the worst train crash in decades. the government is investigating the head-on collision between a passenger in a cargo train that killed at least 38 people and left dozens more injured. the greek transport minister has resigned along with the head of rail infrastructure while it was stationed -- the stationmaster has been arrested. these are your first word headlines. shery: let's turn to china because the missing banker has reportedly been detained since february by anti-graft authorities. for more details let's bring in lulu chen, who leads our asian investigative real estate team. we have seen market sentiment being hit by this disappearance and perhaps really concerns of

more regulatory crackdown. what's the latest we are hearing? >> the bankers attention is related to this investigation and to the former president of the company. and that the anti-graft investigators have it since february according to the wall street journal. that's an escalation compared with what the company announced that the hong kong stock exchange earlier, that it was cooperating in an investigation, which we reported. the journal said that he is under a special form of detention known as retention and custody where a person could be detained for as long as six months without any access to a lawyer. and it remains unclear if he will be formally arrested or charged. haidi: the concerns are for the broader finance industry if this is the suggestion we will see

the start of a new regulatory target? >> it's unclear whether this is a standalone incident or the start of something bigger as a crackdown on the financial industry. what's clear is that the party is moving in on the financial sector and trying to amass power in that sector, which we referred to last week. also, the top anti-graft watchdog also issued a 3500 word commentary last week telling china's bankers to rectify their mindset to clean up their lifestyles and stop copying western ways, which is a very strong signal to the country's financiers, signaling that they are trying to put the bankers into their place and abandon pretensions of being the financial elite. haidi: our team lead for

bloomberg's real estate coverage. coming up next, ages gambling hub is coming back to life after three years of strict pandemic rules. an industry consultant joins us to talk about the revenue outlook for macau. this is bloomberg. ♪

shery: seeing upside on risk

assets in the asian session right now. when you take a look at the msci asia-pacific index you are seeing the materials and energy are leading those gains, and really we have a little bit of gains for wti, a little bit of upside still add 77 dollars -- $77 a barrel. this is we had that price positive boost from a smaller than expected rise in u.s. crude inventories, not to mention exports. we are seeing japanese equities gaining 2/10 of 1%. the kospi coming back from a holiday up 9/10 of 1%. haidi: we will be watching macau casino names in the trading session today because revenue climbed 33% in february. it's a sign that the sector's recovery lingered beyond the initial boost of china's rapid reopening. they expect revenue to return to 2019 levels. but the ip spending will remain constricted. with us as the managing partner at the consultancy firm i again

i ask. great to have you with us, and you join us from macau. i am wondering, just broadly what the mood is like on the ground in terms of tourism, traffic and energy in the city. >> i came back yesterday across the hong kong/macau bridge and on the streets people are out and about again, and in the tourism areas, tourism zones, there are plenty of people about. so life is almost back to know -- back to normal as we know it here and macau. haidi: what will it take for the return of vip volume to come through, or is that really much more of a regulatory china story? >> i think the vip story is gone, china doesn't wanted to happen, and because china doesn't wanted to happen, it will not happen. we look at the figures, about this time last year between vip

gaming revenues it was about 77 to 23%. that was during pandemic times. with the lifting of the restrictions for the resumption of group tours, etc., etc., we estimate the mass vip is still at 77 versus 23%. and with the new restrictions on the operators, we don't see vip returning anytime soon. haidi: so then that means you have to make a shortfall from the mass market, as you say. what will attract those gamblers? >> absolutely right. basically, if we look at it back in 2019, vip gaming in terms of table revenue was about 17 billion u.s. dollars. mass gaming table revenue was also about $17.5 billion, and we are projecting that 2023 will

likely add up between 15 and 16 billion u.s. dollars. so that basically tells you that the oak of that 15 to 16 is likely to come from mass, with vip making up 20 -- 22%. basically macau does not have the ability to handle the huge incremental volume -- sorry, increase in traffic that we would need in order for mass gaming revenue to basically get the loss of vip. so we have 40 billion visitors back in 2019, and to basically generate double the amount of mass revenue to get back to the 2019 level, we would have to have an 80 million tourists, and that she is plainly not possible. shery: not possible because you wouldn't be able to track them or is there not enough infrastructure? we know that some casinos have

new properties, how far along are we on developing those non-gaming amenities? >> is a two-tier problem? the first problem is that our infrastructure, i.e., hotel rooms, the roads, public transport, 40 million tourists we are already at the seams. in fact, i believe a couple of governments have shown that our capacity was run by 30 to 35 million, so we really exceeded our capacity. the other problem is that most visitors come during the golden week. they don't come any time of year because those are times they allowed to travel from mainland china. for to increase the number of tourist, we would have to try it -- tied to the rest of asia to come during the non-golden week, and that is -- whether macau will ever evolve into a non-gaming destination, we have

a lot of challenges, primarily which is labor, we don't have the ability to import labor right now. shery: could we get those vip gamblers from other countries? >> that would be a very difficult challenge, i know the government would like the operators to do that. the problem is, everything in macau is basically geared towards mainland chinese. taxidriver to the restaurants, to the concierge in the hotel if you don't speak cantonese or mandarin it is extremely difficult to get around macau. and as i said, our point towards the problem with infrastructure around it. the second problem to that is that when you have such a large number of mainland chinese tourists, they tend to crowd up the other non-chinese stores and we have seen that happen in korea as well where the chinese crowded out the townies and the japanese. so it's a dilemma.

shery: managing partner at ik makes, thank you. be sure to tune into bloomberg radio to hear more from the newsmakers, get in-depth analysis from the team broadcasting live from the studio in hong kong, listen through the upper bloombergradio.com. plan ahead, stay with us. this 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. every day, millions of things need to get to where they're going. and at chevron, we're working to help reduce the carbon intensity of the fuels that keep things moving.

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haidi: a quick check of the latest business flash headlines, first quarter revenue will be higher than analysts estimates as it focuses on boosting profitability. the company reported sales from three-month the december rising 14% to a higher than expected 8.4 billion dollars. the software -- software makers facing pressure to boost margins by cutting costs. i'll show you his biggest pension fund is on a hiring spree with recruits in equities and private markets driving the expansion of the global footprint. australia plans to grow its headcount from 17 to 100 and its london office from 70 to 200 over the next few years. it says growth priorities will be focused on private equity, private debt and infrastructure. deutsche bank's rates traders receive a lot of the biggest increases and bonuses as the bank unveiled compensation details. germany's biggest banks revenue jumped last quarter, even amid

increases in central-bank interest rates. sources say the largest gain in compensation was within the securities unit. starbucks is facing criticism over its labor practices. dozens of employees have signed an open letter to protest the abrupt return to office mende and alleged unionbusting. a starbucks boasts persons as they are adjusting policies that starbucks denies violating labor laws and says for claims of antiunion activity are false. coinbase has repeated that it's taken product should not be classified as a security amid a crackdown as its rival exchange entered a settlement with the sec to close its u.s. taking business where customers earned yields on tokens. the coinbase founder told bloomberg at the exchange is prepared to defend itself in court if needed. >> harris taking product is not a security, there's many differences, customers never turn over their assets to

coinbase, they are also in the customers possession and we are just providing a service that passes through those coins to help them participate in staking which is a decentralized protocol. >> chinese lawmakers meet in beijing next week for their first gathering sims tests and scrapping strict covid zero policies. the executive editor tells us what to expect. >> is time for the full session of try this parliament. national people's congress. thousands of delegates will descend on beijing to review and approve countries plans for the coming year. but this won't be the sort of legislative debate that you might see a washington, d.c. all the targets are formulated well behind closed doors and there is no uncertainty about if it will give its blessing. instead, the reason this event has followed is because it is here that china will unveil his 2023 plans to the world.

one closely watched detail will be the 2023 growth target. chinese officials of been debating whether the set that market 5%. that would be a substantial celebration from the 3% that china grew in 2022. that would suggest that beijing is getting ready to provide more pro policies this year. also on the spotlight will be china's relationship with the united states on the rest of the world. the newly appointed foreign minister will take questions from reporters at the npc. with tensions bubbling over russia, taiwan, the balloon, whatever he says will be closely followed. it will mark the end of a five-year term for china's cabinet, so we are ready to get a new premier, new vice premier, new finance minister and a new central bank governor. while an ally of chinese president xi jinping is expected to become premier, it's much more of a question of who will be put in charge of the finest ministry in the central bank.

this is john blue and beijing from bloomberg news. this is bloomberg. ♪ shery: -- shery: now announcing a 6.9 billion dollar and fourth-quarter dividends. it's approved the payment of 2.745 per share of brazilian riau per share dividends. the reason we were watching it is because there had been fears that they were not going to pay out dividends and that they would be cutting dividends and subsidizing fuel. this is the state owned controlled oil company in brazil that sank earlier this week on investor concerns that it will be cutting dividends. it announced a 6.9 billion dollars and fourth-quarter dividends. let's take a look at the opening of chinese markets with bloomberg's stocks managing editor in singapore. can you tell us what sectors traders are keeping an eye on as we head to the npc this weekend.

>> to sectors we are with -- looking at, one is the consumer sector and the other is the property sector, both contributed to china's gdp growth. for the consumer sector we are expecting a growth in consumer credit to the sectors like ev purchases, as well as elderly service care and in terms of property i think traders are expecting measures on relaxation for home purchases, lower mortgage rates and potentially a moving away for local governments to buy lands. haidi: bloomberg's asia stocks managing editor with a preview. some of the stocks we will be watching ahead of markets opening in hong kong and china following the disappearance of the chinese financier, the wall

street journal is reporting that it has relation for corruption investigation watching out for news from budweiser drilling. the new material and the companies are reporting results today. that is just about it for daybreak asia. markets coverage continues. we look ahead to the start of trading in hong kong, shanghai and shenzhen. bloomberg markets china open is next. this is bloomberg. ♪ ♪ old school wisdom, with a passion for what's possible. that's what you get from the morgan stanley client experience. you get listening more than talking, and a personalized plan built on insights and innovative technology. you get grit, vision, and the creativity

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