♪ haidi: good morning and welcome to "daybreak: australia." i am haidi stroud-watts in sydney. annabelle: i am annabelle droulers in hong kong. we are counting down to asia's

major market opens. shery: good evening from bloomberg's world headquarters in new york, i am shery ahn. china sets a modest growth target of 5% for the year of the national people's congress that underway. haidi: markets are watching fed chair polls testimony in the coming days. shery: and harald kruger kurod'' s time at the back depends coming to a close. annabelle: we have the open of another trading week in asia after we saw the s&p 500 advancing by 2% of the past, few sessions snapping it three weekly decline. you can see new zealand is already online. we do have polls testimony in the day ahead. some other big events are coming up in asia kicking off with what is happening. .

we have the rba meeting tomorrow. the white expectation is a hike another 25 basis points. even though we see signs of the effects of tightening coming up in the economy, that will be a 10th street move to the upside. in terms of what we are watching in japan, we have the boj governor, haruhiko kuroda chairing his last policy decision at the helm. he is stepping down after more than a decade in that position. in china, we have the annual gathering of leaders for the national party congress underway. we have not seen any aggressive policies to boost growth just yet. we will go through the details, but i do want to focus on the market reaction that we can expect. futures are printing higher. in this graphic here, you can see that during the national party congress, five of the seven less times we have seen equities fall, and mixed move in the month after. shery: we will be watching how the npc ends. meantime we have u.s. stocks

managing to gain ground, games for friday's session, which helped the s&p 500 hold four weeks of losses. we had gains despite the fact we saw resilience in the services number in the institute for supply management gauge. also saw a rally in the treasury space. but given the selloff the entire week, we ended up with bond yields higher in the week. the 10-year yield at 3.95. there are four entries are watching in the next week. chair powell in congress. we also have the jobs report on friday, major catalysts for the markets. also, cpa data on march 14. that will be followed the week after by the fomc, all things that investors will be watching closely, including the chinese economic rebound which has set wti oil prices slightly higher, closer to the $80 a barrel level. haidi: and no big bank stimulus is expected from china, setting

a modest growth target this year of 5%, an indication that the government will avoid any large stimulus packages to boost economic recovery. for the latest, let's bring our chief north asia correspondent stephen engle, who joins us in hong kong. are we expecting any fallout or drastic reaction. the report from beijing was pretty measured. stephen: totally within my expectations, because keep in mind we will have a new leadership team essentially being unveiled over the course of this next week or so, the new economic czar, new central bank governor. one thing i have gleaned from pulmonary china, they like to set expectations fairly low and then exceed it, versus the other way around. what i am thinking here is that authorities think reopening and the dropping of covid zero -- by the way, there was very little mention of covid, but dropping

covid zero and having this reopening is stimulus enough. there is not going to be a lot of large infrastructure projects. there will be a lot more jobs but a lot of them will be urban jobs. there is an indication that they really want domestic consumption to drive the economy this year. that is our number one priority, according to the report from the outgoing premier. as well as boosting, the number two priority, boasting innovation in science and key technologies to become more self-reliant. that is alluding to some of the pressures it is feeling from the united states on the chip front and equipment making. there is so much to unpack from this report the key takeaways are growth of 5%. that is pretty modest. last year it was set at 5.5%, but they undershot that because of covid, coming in at 3%. so there are modest expectations. but don't expect the shovel

ready infrastructure projects that they have relied on in the past. the growth goal should be taken as a floor of growth. the government is willing to tolerate. so my expectation is that they will set the floor kind of low and then use it as a trampoline to bounce higher if conditions allow. again, on the defense front, so much to unpack. i will talk about the economy and then we'll talk about the fed, because that headline number was quite a big increase, 7.2% increase in defense spending. li keqiang says that in this year will be the peaceful unification with taiwan -- that is a long-standing goal -- but he says we in government at all levels should give strong support to the department of national defense and of the armed forces. we are getting the new team from

xi jinping confirmed. the new premier will probably be li keqiang. and the other heads of state institutions will also be rolled out later this week. shery: really lots to discuss. stephen engle, over chief north asia correspondent, trying to memorize so much that has come out of the china, npc. here in the u.s., federal reserve officials continued to signal the need to keep policy tight, with san francisco fed president mary daly saying alyssa makers will likely keep hiking rates over a longer period of time. bloomberg's economics and policy editor kathleen hays is here. another hawkish message. what can we expect from powell this week? kathleen: sending that message that we have to raise rates more than even we may have expected. mary daly, speaking at princeton

university over the weekend, here is how she summed up what she sees. it is clear there is more work to do. in order to put this episode of high inflation behind us, further policy tightening, maintained for a longer period of time, will likely be necessary. we have gotten lots of signals about keeping rates high well into 2024 and perhaps going about the five point 1%. a contributor telling david westin on "wall street week," he thinks the fed has to look at 50 basis points. they downshifted to 25 at the last meeting, are they having second thoughts? we will wait to hear from chair powell. larry summers pointing out that they have not been this far behind the curve in over a year. for jay powell, he will be speaking to the senate on tuesday, then on wednesday he will be speaking to the house,

the financial services and banking committees in both cases. presumably this is the big question, will he echo his colleagues who have signaled higher for longer? will he signal openness to 50 basis points? we will probably get two big reports this week, jobs and inflation, and that could tip the balance. finally, remember the meeting the head of the rba took in front of parliament a couple weeks ago, don't think jay powell's pushing from both sides of congress is going to be that strong, but progressives like senator ward from massachusetts, are expected to push back hard, senator sherrod brown from ohio -- keep hiking rates and hurt the labor market, can you do this? and republicans, inflation is such a problem, because of

course the problem is for the white house. these testimonies are a big one. . we get the political side and economic side, and with inflation so hard, you know that we were the biggest things. shery: we are coming to the end of an era, the last policy meeting from governor kuroda this week. are we expecting one more surprise from the boj? kathleen: depending your position on forensics change, jgb's, you may be hoping for a surprise. people thought he will not make a surprise. maybe he will, he made a surprise in december. bloomberg economics points out pretty wisely that he will not keep everything in place, negative rates, yield curve control, they know they will have to buy more bonds to keep that feeling in the 10 year jgb at 50 basis points. but the main thing is, yes, inflation is above 4%, but they think it is temporary. they may not hold onto the 2%

target. that is the reason for them to do that. also, not to do anything that will get in the way of the incoming governor to do what he needs to do. so far, he has signaled keeping policy as it is presumably. he will move slowly and carefully. he is known for watching data. he needs to confirm inflation will stay above 2%. it is very interesting that in the last couple of days, a top ruling party official in japan telling parliament that a boj move to exiting monetary policy, extraordinary since stimulus would be disruptive for markets. he did add that it might be disruptive for trying to finance your debt at a lower rate, and with defense spending being doubled this year, this is also a big deal for the ruling party. there's a lot of politics next innocent big decisions these days. haidi: over global central banks correspondent, kathleen hays in new york.

chinese markets may come under pressure again, following the unveiling of a conservative growth target. traders are also watching fed chair jay powell's congress testimony on tuesday. let's get more from our mliv contributor garfield reynolds. one of the reactions, as steve mentioned, is that it will be a fall. how are markets going to interpret that report? garfield: the biggest problem for markets is the upside of growth later on. that does not help them right now. there were strong expectations going in that there would be a more aggressive approach, what might be seen as a more markets-friendly approach. instead you have got this measured set up. you don't have much in the way of stimulus coming.

you also have the increase in defense spending that emphasizes both how strongly everything is being placed on the control of the current regime. it also emphasizes the potential for tensions with the u.s.. so none of that looks particularly promising for market that had gotten very excited about china very quickly with that data surprise last week which ended up setting up the npc precisely to take a more measured approach, a lasting literary one, because the economy is doing perhaps better that people had expected it. they want to be careful both that they don't over do things, and that they don't lose control, that is what it comes down to. shery: many key events to watch in the next few weeks when it

comes to how u.s. markets could also move. we do have chair powell, jobs data. what else are you watching? garfield: those are the two key things. powell and in particular because the last few weeks, we have had a couple of occasions when jerome powell has managed to be the perceived dove in the room, he has talked of titans of disinflation. he very much wants emphasizes the idea that they could engineer a soft landing. yes, it's difficult and it is a narrow path, but we think we can get a soft landing. those are the sorts of things markets have been encouraged by, even if they have been disconcerted when they got walked back by other officials, were in particular when the data came in stronger-than-expected. when you think our lives going

to be testifying to congress, there is likely to be at least some of those statements because you adapt to your audience. so that might even help to explain the somewhat surprising rally on friday by bonds and stocks. some anticipation that jerome powell is not going to be as hawkish as some of his colleagues. shery: she freights correspondent for asia and mliv contributor garfield reynolds there. let's go to vonnie quinn with a first word headlines. vonnie: the biden administration is so close to computing an executive order that will restrict u.s. companies' investments in parts of the chinese economy. the restrictions include advanced technologies that could enhance china's military and intelligence capabilities. president biden is preparing to request funding for it in his fiscal 2024 budget. japan is reportedly planning to lift restrictions on experts of key electronic components to south korean. newspaper says it is part of a deal to withdraw complaints to w.t.o. over a trade dispute.

. the wto agreed in 2022 mediator the two countries' spats over japanese curbs on chemicals used to manufacture smartphone displays, tv screens, and semiconductors. saudi arabia has raised prices for crude shipments to asia and europe, as it anticipates, picking up saudi aramco increased more prices, with its main arab at $2.50 a barrel above the original benchmark. those for northwest europe and the mediterranean jumped by as much as $1.30 a barrel. brazil's former president is reportedly planning to return to the country this month he. made the comments to nbc news well attending the conservative political action conference. he has been in the united states since november. 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 am vonnie quinn. this is bloomberg. haidi: still ahead, as the dust settles on the mixed earnings season in australia, the results show signs of a downturn. we will give some key takeaways later this hour. but first, more analysis on the national people's congress, from year loss school -- from yield law school. this is bloomberg.

haidi: you're watching "daybreak: australia."

taking a look at the week ahead. boj governor haruhiko kuroda will oversee his last policy meeting on friday the. bank is expected to keep its stance unchanged. but before that on tuesday, fed chair jay powell gives his semiannual report to congress. is expected to highlight progress in slowing inflation without a huge job losses were laying the groundwork for higher interest rates. on thursday, president biden will release his 2024 budget request, outlining his top spending priorities, including --. in the rbi is a cricketer race interest rates a tent -- and the rba is expected to raise interest rates attempt time on tuesday. . we will also be watching inflation numbers out of china, the philippines, thailand and taiwan. that is your week ahead. shery: our next guest will be watching jay powell's testimony in congress, among other things this week, data points coming up next week as well.

nadia lovell, senior u.s. equities strategist at ubs joins us to discuss. chair powell's test money, not to mention jobs data and cpi numbers next week, what are you expecting for that fomc meeting in the next couple of weeks? nadia: it is clear that inflation remains to heart and the fed still has more work to do. we are looking for 25 basis points in the march meeting and then another 25 in may or june for the terminal rate of 5.25-5 .5%. it is now being debated in the marketplace so whether or not the fed will reaccelerate a rate hike, we don't think so. the futures market is pointed or as appraised in 25% chance of that. but would we look at the four mc february minutes, it doesn't suggest an appetite for 50 basis points. but things remain dependent.

we think the fed will up for a series of 25 basis points as it tries to monetary policy being restrictive enough in the face of inflation. shery: despite the fact that you don't expect every acceleration of rate hikes, you have downgraded your s&p 500 forecast . what are you expecting to move the needle downward for markets? nadia: when you look at markets this year, despite the fact that we have seen a massive repricing in the rates market, equities have been resilient. equities last year, it was very sensitive to the rise in interest rates, but this year it has been focused on growth. quite honestly, growth has surprised the upside. at least in the near term. we are getting better economic data. but the reality is and has been accompanied by high inflation. so if rates will be higher for longer, we don't think the straight in the equity market

will be sustainable in the back half of the year, we think you are going to see a drag on the economy that has an implication for corporate earnings. from a valuation standpoint, multiples are elevated. they are elevated on earnings expectations that are still too optimistic for 2023. think about putting relative to bonds, with each higher rate, bonds are becoming more and more attractive versus equities. we just don't think the risk-reward is favorable for equities right now. we think markets are likely to remain at range-bound near term through the year. but in the back half of the year when the economy feels the drug of higher military policy, you will have the peak rate of 5.5% and that will be a headwind to equities. that is why we lowered our expectations for the end-of-the-year for the s&p 500 3800.

haidi: at what point would you find some of these great-sensitive sectors likely become attractive again, particularly sectors like big tech? nadia: for tech, it's not just everett call. the longer duration assets have been sensitive to the increase the rate in the last 24 months or so. but the reality is that fundamentals in tech are deteriorating. they are not that great. you look at the consensus expectations for growth this year, earnings growth for the tech industry, it is 1%, below what the broader market is expected. valuation is quite elevated. out of the 30% premium. what you have to see in tech is a real acceleration of the fundamentalism. there's been a lot of excitement around degenerative ai. we have to see that translate into better growth outlook for tech, and we are not. , and that is why we still remain cautious on the outlook for tech.

haidi: what are your favorite inflation hedge is at this point, then? nadia: it continues to be commodity complex and energy. we have been positive on energy for the last two years, continually positive. we have a favorable outlook on brent oil, we think it can get to $105 this year. pressure is pulling back on production, given the headwinds from sanctions. the massive internet will put pressure on oil prices. we continue to think that is a good inflation hedge in this environment. haidi: nadia, great to have you with us, senior u.s. equity strategies from ubs global am management nadia lovell,. lots more to come. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. foxconn's sales arose despite

china reopening. monthly revenue dropped to billion dollars last month. still, the company says its first-quarter outlook is roughly in. line with market expectations. for chinese genetics firm says it opposes the decision to slap export restrictions of some of its units. the biden administration announced curbs. the company says the u.s. decision may have been caused by misinformation and is willing to clarify. plenty more to come here on "daybreak: australia."

shery: china set a modest gdp growth target for the year, and assign the government is still concerned about the economy's recovery. our china government reporter was covering the opening day of

the country's first npc meeting since the exit from covid zero. >> chinext first post-pandemic npc kicked off here sunday at the great hall of the people in beijing in his outgoing speech, premier li keqiang emphasized the need to focus on economic growth in the year ahead, setting a target of 5%. he also mentioned the need to rein in the property sector and talk about creating millions of urban jobs. on defense, the country will increase spending by 7.2%, the highest increase since 2019, and it reflects growing tensions not only across strait with taiwan but also with the south china sea and beyond. haidi: let's get more insight with the senior fellow of the china center at yale law school. she joins us now. jamie, it was a fairly measured

report from premier li keqiang before ecb changes in personnel. what did you make of it? interesting that there has been an interpretation that the 5% growth target is not a fall, they managing expectations. jamie: yes indeed. hello. i read the work report as basically, we are back in business, we will restart the economy. we are still engaged with the world. sort of to reassure domestic constituents including the battered private sector, and also the foreign business community, telling them that they are welcome and they will optimize and further improve the foreign investment environment. the 5% gdp growth was a little less than some people thought they might come out with. in fact over half the provinces had adopted 6% targets for the next year. but other observers point out that the more modest goal may

give leadership a little more room to undertake some of the reforms they are talking about wanting to take, but which the work report unfortunately did not give us any concrete details about. haidi: we have come to expect that from these sorts of reports, a lot of catchphrases -- "development," "consumption-driven economy," "reforms" -- not a lot of detail about the reforms. what we do know in concrete is that changes in leadership. do you buy into the concerns from international markets that we are moving from a group of very well-respected, very experienced, internationally mean economists to, i think our bloomberg economists called it, it group of xi's yes men? jamie: that is a concern and it dates back to the 20th party congress which xi put in place a group of yes men for his highest

group within the party itself. and we see of course that a lot of those are taking positions now, we assume, in the state's structure. the problem right now is that we are not sure who is going to be aware or doing what. . we have a lot of rumors, but it will not be addressed until later in the congress. we know xi jinping will be reelected for a third term as chairman or president of the people's republic of china. and it is very clear that li keqiang -- it is very clear that the former shanghai party secretary who was brought in as the number two, sort of got elevated very quickly into this position, is going to take over from li keqiang, and in fact has already began acting like the premier. a lot of concerns about him, including the fact that he has not really served at the center before. and typically, premiers would

first serve time as a vice premier, before coming into the position of premier. there were a lot of doubts about him. i understand the american business community has a more positive view of him. he served in economically developed regions. they think he is a pragmatic person who understands the importance of economic development and working with companies as well. and indeed, a recent report indicates that perhaps he is not quite the yes man we thought he was. a report came out about him pushing back against xi jinping as covid was taking off again as they were relaxing the controls. and xi jinping wanted to go back to the zero covid policy. and that he interceded and said let's stay the course, let's get through this. for better or worse, when you read the policy that would indicate, to the extent that it is true, that he is not the

yes-man that we thought. some of the biggest concerns have to do with who is going to take over, and sort of the financial and economic portfolios in which we have had folks who were not only well-experienced domestically, but were well-known and often had experience on the international stage as well at the. imf or the world bank. . shery: what about changes when it comes to state its additional restructuring, that might affect those economic portfolios -- comes to state its additional restructuring that might affect those economic portfolios? jamie: the people being put in place, the party has announced it approved yet another massive restructuring of party and state institutions. this happened back in 2018, and again, it looks like more of the state functions are going to be absorbed into the party rather than the party just using personnel appointments and party committees to make influence. of great concern is that among

those institutions to be absorbed into the party will be the financial institutions. the securities regulator. current commission that regulates ranking and insurance. these new personnel who will take over these very important portfolios in fact may end up reporting directly to the central committee and xi jinping, rather than under the state council. that may impact as what has been seen as their greater professionalism and exercising a degree of autonomy in making decisions. so this is really shaking confidence on the part of some in the foreign community. and this plan, until we see it, is also creating some concerns. shery: so what does all of this mean for some of those buzzwords that haidi mentioned earlier, development, reform, opening up the country?

jamie: the more the party purports to exercise executive leadership over areas of the state, we wonder whether there is more opacity, whether rights will be protected. we have seen this in the past when the party has absorbed other state functions. again, this is china, it is a very complex country. sometimes people surprise us. at the end of the day, when you put people into positions in big bureaucracies with certain tasks to achieve whether it is economic and financial goals or social security, those people, no matter how loyal they are to xi jinping and the party, are going to be expected to deliver on those goals. that can set in place unexpected dynamics as well. i would think china is a country that has always surprised us, seems to have an infinite capacity to surprise, and we

will just have to wait and see how it plays out. but this latest move is also not going to help the attitude in the united states that the party in china controls everything. so the more the party asserts its authority and puts in place things like it sounds like they are going to do, the less folks outside of china are going to believe that actors can act with any kind of autonomy at all. shery: jamie horsley, yale law school senior fellow. we will have more analysis on the npc throughout the day. in the next hour, we will hear from moody's analytics on why they are optimistic on the outlook for the world's second-largest economy. later, we will be joined by ubs and e spring investments for more insight on china's growth prospects. let's discuss how economists are reacting to the gdp target. annabelle joins us for morning calls on hong kong.

what are we hearing so far? goldman sachs put out a report saying that the target of 5% annabelle: . or 5.5% that had been bandied about by some economists. but what goldman sachs says in practice is that it implies that anything above the 5% level for gdp growth will be acceptable to beijing. given the low base rate, this is not exactly an overly challenging target ahead for china. goldman sachs is sticking with its gdp target this year of 5.5% on the back of that post-covid rebound we continue to see. one area they were looking at in particular was the property sector, given we are seeing stress is still hitting this industry in particular. goldman sachs says there is possibly more easing on the way, given the key line -- housing is for living in, not for speculation -- was in the report. we will wait until we get the new leader's press conference

later in the week. they are also looking out for anything in the fiscal budget report, and any institutional reforms as well. haidi: what are we hearing from ing in the meantime? annabelle: they are more bearish on the outlook. 5% is there gdp target for this year, so again, this was in line with their expectations. the reason is they are pointing to the weaker external environment building in other economies that will hit china's very expert-led economy. -- very export-led economy. they are focusing on infrastructure investment, how much new local government debt special issuance has been announced. it came in at 3.8 trillion gone, lower than the estimate of 4 trillion yuan. where they think the bulk of the money will be going into is tech. these are the key focus areas. ing is also warning that you want to be wary of the euphoria

if the government support stands for after three years. we have seen it facing other sectors like solar and property in turn haidi: coming up, earnings at some of australia's biggest firms are flashing signs of an economic recession. the details, next. this is bloomberg. ♪

vonnie: you're watching "daybreak: australia." i am vonnie quinn with the first word headlines. san francisco fed president mary daly things interest rates will have to stay here longer. she pointed out inflation remains high in goods, housing and other services, despite the fed's aggressive tightening. south korea may reportedly impose fines of billions of won on two financial companies on illegal shortselling. citing unidentified industry sources, the review will take place during a meeting by authorities on wednesday. if the penalty is imposed, it will be the first such case since the revision was made to the capital markets act in 2021, which now allows fines of up to 100% of the short order amount. you and negotiators finally finalized -- you and negotiators finally finalized a new international agreement to sustain almost two-thirds of the global ocean.

the treaty is the culmination of almost two decades of work, and creates a coordinated approach to establishing marine protected areas on the high seas, a critical step towards meeting the shared goal of conserving at least 30% of the global ocean by 2030. 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 am vonnie quinn. this is bloomberg. haidi: as the dust settles on a mixed earnings season in australia, one key takeaway has emerged -- things could get a lot worse. bloomberg data reveals that 41% of the asx 200 companies, reported half-year results in february with negative earnings surprises. let's talk about that with the asia stocks reporter gina mckay. a lot of concern despite the relative resilience we are seeing in australia that there are recessionary segments flashing. gina we had negative surprises, up 20% year-over-year. the main takeaway is certainly a

mixed earnings season. we have macro conditions declining somewhat, we had some placards in the consumer sector, anything tied to property, consumers swapping their fridges for their holidays. and we have got them reining sector was another weaker area this earnings season. weaker commodity prices, higher expenditure. higher labor costs, these sorts of things coming through. and we saw some of the largest miners/those dividends. we also did not see the china reopening come through as investors would have liked. certainly a meager earnings season. and we saw that during the earnings season, weaker gdp data. we don't really -- the general gist is that investors and analysts think it perhaps will get worse from here. shery: a lot of the earnings results are backwards looking,

and we are focusing on the guidance. what did australia's biggest firms have to say about that? georgina: so another thing that came through was that there were some inflationary pressures, no surprise to anyone. they will only continue. possibly even get a little bit worse. the other thing and very timely, you have the rbi rate decision tomorrow. where are rates going to go? you have everybody waiting around to see what the direction is. the other takeaway was that not many companies give guidance. . everyone is a little unsure. this uncertainty is going to persist. haidi: our bloomberg asia stocks and credit reporter, georgina mckay there. the former treasury secretary larry summers says, a soft landing for the u.s. economy is still possible, as long as u.s. fed policy keeps up with data, and he thinks the fed is already behind the curve.

>> the fed is behind the curve. there have been six jolts to the fed in the last six weeks. the seasonal adjustments of the cpi took the trend downwards in inflation during 2022 out of the data. the inflation figures for the last several months of 2022 were revised upwards, further taking any sign of declining inflation out. we got a cpi number that was very disappointing in terms of how high the level and the core was and that was reinforced by the pce information when it came in. all the indicators for january read strong, suggesting that

monetary policy has not yet gotten substantial traction in slowing the fullness of the aggregate economy down. wage inflation numbers, as they have been revised, no longer show the kind of reductions that we had been expecting, or many had been expecting to see. and you see interest rates move to russia upwards with the 10-year crossing 4m and the 2- year reaching record levels. put all that together, i think reasonable assessments of where the fed is, would say that they have not been to's far behind

the curve for a year or so. once again, the arguments made by team transitory, have unfortunately looked more like wishful thinking. and you can see that in the evolution of rhetoric from "we will have a soft landing," to "it is possible we will have a soft landing." of course it is possible that we will have a soft landing. but maximizing that limited prospect depends upon realistically assessing the situation. . >> former treasury secretary larry summers. be sure to tune in to bloomberg radio to get in-depth analysis from the daybreak team now broadcasting live from our

severe in hong kong. listen on the app, radio+, or on bloomberg.com. plenty more ahead. this is bloomberg. ♪

shery: here is a quick check of the latest business flash headlines. a south african utility company is increasing outages again.

the state owned power utility will remove 4000 megawatts from national grid until tuesday morning. eskom adds that more power plants have been taken off-line for repairs. sunday marks the 54th day of rolling blackouts in south africa this year. lufthansa has joined major european airlines in predicting an earnings booster this year as travel demand continues to swing back from the covid pandemic. tencent expects a significant improvement on the $1.6 million adjusted ebit last year. it says some revocations to mediterranean countries and travel on north atlantic routes will be particularly strong. >> looking forward to a very strong demand for the year 2023 starting at easter, going all the way to the summer not just in general terms, but also focused on the premium classes, first class, business class, premium economy.

not just by corporate travelers, but to a much larger degree individual leisure travel. shery: boeing's ceo has missed out on a $7 million bonus. the company's board decided not to give him the incentive due to long delays to launch the 777x wide body jet. release of the jet was postponed to 2025 due to intense regulatory scrutiny. without the bonus, he still earned $22.5 million last year. haidi: it has been an incredibly colorful and wonderful 17 days of celebration and reflection for world pride here in sydney the last couple of weeks and it wrapped up over the weekend with this march, commemorative march over the harbor bridge, and you can see the starboard groups of people, a vast crowd of 50 thousand people who made their

way across the sydney harbour bridge. we know that is likely to be the biggest turnout we have seen since we had 250,000 people walking the bridge for indigenous reconciliation. the prime minister anthony albanese and his partner walked, as well as australia's foreign minister and her wife, as well as each of the community groups that really made their presence very much known. it has just been an extraordinary couple of weeks to be in sydney. shery: i can imagine. the biggest event, public turnout for inclusion since 250,000 people walked the bridge for indigenous reconciliation in 2000. so, really quite the turnout. part of a global movement right now. these are some of the stocks we are watching when trade opens in

australia. bhp and rio tinto wiother iron d shares after chinese authorities held a meeting with some expertn ore prices. we will also keep an eye on northern minerals as beijing slams canberra for blocking a bid by a chinese land company to boost its ownership in the rare earth supplier. "daybreak: asia" is next. this is bloomberg. ♪

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shery: dear watching "daybreak: asia," coming to you live from sydney, hong