♪ shery: welcome to daybreak asia

counting down to asia's major market opens. the top stories in is our. oil soaring as u.s. futures and the yen slide after opec-plus announces a surprise reduction cut of more than one million barrels per day. ubs reportedly cutting up a 30% of its workforce after completing its takeover of credit suisse. swiss prosecutors launching an investigation into the deal. and it donald trump sent to pleaded not guilty when he appears in a manhattan court this week to face criminal charges. we are getting a start to a new month of asia pmi. australian pmi. we are just getting numbers through now. this is key into rba decision week as well. economists split at this point as to whether we will see a pause or not. judah bank australia manufacturing pmi's seeing a slight improvement from march, 39.1 up from 48.7.

still in contractionary territory. austria's economy is quite inconsistent in the way we have seen the impact of consecutive rate hikes but there are speculations that with a softer inflation print recently, we will potentially get a pause from the rba when they meet this week. look at how we are viewing australian assets as we get into the start of market trading in an hour. we have seen weakness in the aussie dollar. broadly commodity currencies rallying on the back of the shock announcement to cut production by opec plus. leading the gains have been the norwegian krone and the canadian dollar. sidney futures but -- of about .6%, extending gains into a sixth straight session. risk appetite more broadly looking shakier in asia. there are questions as to whether investors in the broader

markets got ahead of themselves with the potential inflationary impact of the move. haidi: u.s. futures remain under pressure paring back some sharp earlier declines. still in negative territory after u.s. stocks rallied last week, the best we could gain since november on the back of the fed's preferred inflation gauge cooling last month. but as you said, what would it mean for inflationary pressures and the narrative when you have crude prices continuing to gain ground? we are seeing wti prices now higher up by more than 6% adding to a 9% gain we saw last week. last week we had ongoing disruptions. exports from iraq. we sought perhaps the end of the year would bring more supply tightness. the surprise oil cut is now being felt in the markets. let's discuss all this with su keenan. it looks like more analysts, this time goldman especially,

are scrambling to cut outlooks. su: to change them, yeah. it certainly looks like when you have brent crude immediately shooting up 8% you will have analysts on the heel of that with projections. goldman one of the first to get more bullish. 95 for brent at the end of the year. they were already bullish due in part to strong macro data out of china. one of the reasons the opec move came as such a surprise as you can see supply already looked tight the latter part of the year. plus, you had oil producers giving assurances to the market that they would hold output steady. even on friday, we were told that delegates were signaling there would be no change to the meeting. the announcement came as a big surprise. at -- it caught traders, analysts, even the white house off guard. it is a one million barrel per day production cut to take effect in may. let's look at headlines.

the saudi arabia group is leading the cartel with its own 500,000 barrel cut. members include iraq, kuwait, the united arab emirates, russia. there was a lot of broad support to the cut. look at the price action. west texas intermediate closed about $75.5 friday after an end of week rally. look at that straight upward climb. as soon as asia trading began. one veteran at us says opec-plus clearly wants a higher oil price. there is a view this could increase tension between the u.s. and saudi arabia because it certainly supports higher inflation, the bane of president joe biden's administration. there have already been tensions with the saudi's. president biden's spokesperson is saying they believe the cut is "ill-advised.", particularly,

given uncertainty in the market. the biden administration is pledging to continue to work with oil producers and consumers with a focus on gas prices. brent crude also shooting up at the asia open of trading. the initial impact of the cuts, which again, starts the beginning of next month, will add to just over one million barrels, 1.1 million barrels. from july, due to an existing extension of russia's supply reduction, there will be about 1.6 million barrels per day less crude oil on the market. that is a very big difference from what expectations have been. so, everything from currency traders, again, commodity traders, really, reconfiguring their outlooks based on this significant change. haidi: bloomberg's su keenan there. let's look at market reactions with our chief rights correspondent for asia and live contributor garfield reynolds. where does this leave the market participants that were really

betting on effect pause, or a sedative -- a fed pause or a fed pivot? garfield: well, those traders had already started have some doubts. there is a lot of data to come this month that will mean a lot for that fed decision. there is the question of whether the banking crisis could -- continues to calm down. although, even with the banking crisis calming down, we still have a strong end to a very strong quarter from the u.s. treasuries market friday. so, i think the market remains very firmly of the opinion that the u.s. economy is going to weaken substantially in the coming months. aunt that is adding -- adding higher gasoline prices to that will both complicate the fed's task, and also, potentially come away on the economy going forward -- potentially, way down the economy going forward.

so, there will be sunday more volatility, especially short-term when it comes to what goes on with yields at the shortened -- short end. i think it is significant that the s&p 500 futures have gone back to slightly down. nasdaq futures are down more. they have shown a great sensitivity to the rates outlook. we have also treasury futures down this morning too. so, it does add to those concerns at the margin. in a lot of ways, it would not matter too much except the concerns were already so tightly balanced that even a small shift could have a very, very big impact. so, we will be watching with interest as london and the u.s. markets get to pass what this opec cut means. what it means for inflation, especially inflation expectations. they had been starting to pick

up a bit, at least in the bond market anyway. this will add to those concerns that the fed will remain hawkish until it is certain it has broken something. when we last looked at what the fed was saying, they were pretty sure they had not broken anything yet. so, the bias was towards more rate hikes and no rate cuts. that is very different to what markets have been pricing. >> interesting. we are also coming from friday's pce numbers. that preferred gauge of inflation cooling last month calmed down the markets. the vix, even the fair gauges below 20. at the same time as you say, when it comes to rates expectation, huge swings. not to mention the bond volatility gauges that are still pretty high. >> yes. bond volatility gauges are elevated and especially when you look at swaptions, which allow a more granular approach, you can

see two year yield swings are expected to be as wild in the coming days as anything of what the expectations were for 2008. so we still have at least part of the bond market at 2008 levels. even as the more general picture is a bit more calm. the question is, are we through the storm? has the storm passed? or are we in the eye of the storm? there is a lot of concern among bond investors and i was the -- among bond investors and equity investors too it is more a case of being in the eye of the storm and there is more wind of turmoil to come. the fed has not finished tightening. we do not know whether it will and we have expectations for the market that the fed will rapidly cut once it stops. the fed has said no, it will not do that. shery: let's get to vonnie quinn with the first word headlines. vonnie: ubs will reportedly cut

as much as 30% of its staff after completing its takeover of credit suisse. a swiss newspaper says the move could affect 11,000 workers in switzerland plus 25,000 more worldwide. swiss prosecutors opened an investigation into the deal area they want cash deal. they want to identify possible crimes leading to the edits we's collapse. beijing is launching a cybersecurity review of mpox -- imports from micron. the federal government wants to ensure the integrity of its information for structured supply-chain citing national security concerns, the latest offensive in the chip or between the world's largest top two economies. about 11% of micron sales come from mainland china. at finish prime minister lost a parliament reelection to a pro business opposition groups area his social democrats fell to third place behind the far right finn's party.

orpo declared victory but will have to work with one other blocks to form a government. >> i think the finish people -- finnish people want change. now i will start open negotiations with all parties. i have one crucial issue. it's the economy. we have to fix the economy. we have to do reforms to boost our economic. -- economy. vonnie: donald trump is planning to plead not guilty to charges stemming from hush money paid to a porn star during the 2016 election campaign. his lawyers said the charges were investigated. trump will be arraigned in new york tuesday. >> the team will look at every potential issue that we will be able to challenge and we will challenge it. i anticipate a motion coming because no law fits this. somehow a state prosecutor took

a misdemeanor and tried to cobble it together by making it a felony by alleging a violation of a federal campaign. the fec said that does not exist. vonnie: global news 24 hours a day on air and on bloomberg quick take powered by more than 2700 journalists and anaylsts in over 120 countries. shery: japan stepping up support for companies investing overseas. we had learned exclusively which sectors are in focus. next, paul gambles tells us why he thinks the fed has badly damaged the u.s. economy and its markets. this is bloomberg.

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♪ >> we are entering a recession and financial instability having to raise interest rates because inflation is too high. so we get inconsistency. we cannot achieve price stability, maintain economic growth, and financial stability at the same time. so eventually,. >> speaking exclusively to bloomberg. look ahead. french president emmanuel macron expected to travel to china this week along with european commission president ursula von der leyen to push beijing to help and russians war in ukraine. from china, watching for manufacturing pmi numbers. the recovery in domestic demand key for beijing, counting on consumer spending to reach an economic growth target this year of around 5%. we will get come positive --

composite services pmi data from china. haidi: the rva set to make it's a prorate call with last week's softer inflation data upending aggressive highs. we will be getting rate decisions this week from new zealand, sri lanka, pakistan, and new zealand. credits and ubs hold meetings tuesday and wednesday. credit suisse will have to deal with shareholder criticisms over the bank collapse. at ubs, that will be focused on the path ahead after its acquisition. on friday, we get the u.s. jobs report. economists expect new hiring to have slowed 240,000 in march. let's bring our next guest that says markets have become an uphill/downhill struggle again with volatility becoming the next new normal. paul gamble is cofounder and managing partner at mbmg group. with the opec-plus shock to the market, where do we go from

here? paul: morning. great point. i think that we have all expected there would be consequences. i have always brought up my kids telling them actions have consequences. we always thought there would be consequences for the fed raising rates the way they have. we are starting to see consequences everywhere. it's like whack-a-mole at the moment. particularly in march. we saw the banking crisis as one consequence of the interest rate policy. i think opec is telling us they are expecting oil consumption to fall. whether that is because they are expecting an economic slowdown. their response to that is obviously to cut production and boost prices. i think your previous guest garfield reynolds had uncovered really well. we could be heading down a path

where we see signs conducive to economic slowdowns. yet, the fed response is just to keep hiking rates regardless. shery: does that mean the threshold for volatility is lower now after banking turmoil? paul: i think the banking turmoil summed it up in that we had all of these consequences coming out of the system at once. then, we had a policy response to try to deal with that. do try to deal with the symptoms. we treat the cyst -- symptoms. markets being a generally optimistic assume everything is ok. and we are going back up again. in the last week or two we have had banking crisis that drove markets down. the fed intervened markets backup yet we had a european

banking crisis, markets go back down. everybody just assumed you are through the worst of it. as garfield reynolds said, we could be in the eye of the storm. markets go back up and now we have opec coming out giving their view, that they are expecting a slowdown, expecting lower consumption. we are now probably about to enter into a very short term down like again and it is just this constant trade-off between waves of bad news, reaction to bad news and then more bad news. i think the outlook is that these things will keep coming out now because they are so embedded. because we have had a year of pretty irresponsible policy. all of the damage they have done is now starting -- starting to show up. shery: what happens to the japanese yen? when we had banking turmoil it

started acting as a haven asset. we saw the japanese yen strength and despite the boj weakening it against the u.s. dollar. at the same time we are talking about all of this volatility when japan is a major oil exporter. we are seeing downside pressure again. where does japanese currency go from here? paul: like anything else it will move in a volatile direction. one thing we are trying to look to its may be a place where, a year, a couple years ahead, trying to envision where assets are likely to be a that stage. some assets we have a reasonable idea and the yen is one of them. we are targeting at least a 10% maybe 20% stronger yen in one to three years time. that is a pretty broad timescale unfortunately but you can't be more specific than that in these conditions. we are targeting lower u.s. interest rates, one of the main divers of a stronger yen. stronger treasuries in one to

three years time is one of the core calls we have. what is really up for grabs is where risk assets will go. how much damage will there be by the time we get relax asian in interest rates? we will have to ride a lot of these uphill/downhill cycles. the ultimate direction, with some assets like the yen, it is reasonably clear to us that there is a good chance of a stronger yen. but with some assets it is really unclear where we end up in one to three years time. >> how closely do you follow semiconductors? it seems that the sector has been caught in a geopolitical rivalry between the u.s. and china for a while now. not to mention, facing their own issues when it comes to semiconductor demand. we are seeing beijing launching a new cybersecurity review of products from micron. can we see any upside in the

sectors for markets that depend heavily on exporting these products? paul: great question. we can see upside as well as a lot of downside. what you have to look at with semiconductors is we have an economic monetary policy issue overlaid with geopolitics as well making it kind of double with bigger ups and bigger downs. obviously taiwan is absolutely at the center of the geopolitical storm right now. and it is at the center of the global semiconductor industry. so, i think you can see far, far bigger move ups and moves down in semiconductors. because we do not know quite how global trade will set her -- settle down and multi-polarity will work out in the semiconductor world, it is actually very difficult. semiconductors is one of those assets where it is really hard

to make a call whether the ultimate destination will be higher or lower. it will be bumpy getting there. shery: difficult and very uncertain times we live in. paul gambles trying to give us an outlook for many sectors that are facing different challenges. you can get a roundup of all the stories you need to know to get your day going in today's addition of daybreak. terminals drivers go to dayb and available on mobile. customize your settings so you only get the news on the industries and assets you care about. this is bloomberg.

shery: the latest business flash headlines. tesla delivered a record 422,875 cars the first quarter beating analyst expectations. the automaker had slashed prices earlier this year to appeal to consumers affected by rising interest rates and faster inflation. the company produced 440,808 vehicles this year, exceeding analyst expectations. bloomberg led a crypto entrepreneur selling a stake in digital asset exchange. huobi global. it is unclear what valuations he is seeking for the company or how big a stick is being offered. however, sun, who calls himself an advisor, since he does not own any stock. oyo hotels filing for an initial public offering in india without disclosing the amount it's seeking, its second attempt to go public after india's stock market regulator raised multiple red flags on its earlier try in

late 2021. oyo filed to raise $1 billion in the original effort. endeavor group pursuing a deal to acquire world wrestling entertainment end of the conglomerate could announce a deal soon. bloomberg reported in february that w w e's executive chairman vince mcmahon was looking to get nine billion dollars for the company. w w e shares gained 33% this year giving it a value of about $7 billion. next, plans for south korea's first commercial rockets. the ambition

shery: take a look at how oil prices are trading at the moment after the surprise announcement by opec+ of cutting production

to bite more than one million barrels a day. already we had seen a weekly gain of wti of 9% to given the ongoing disruptions to exports from iraq. we were expecting supplied to get tied for the latter part of the year, these new cuts coming from saudi arabia, the cuts were a precautionary measure aimed at supporting the stability of the oil market. at white house responded saying the cuts are ill-advised. we have seen endless from goldman sachs scrambled to raise the forecast from $95 for brent for december 2023 given the cut. let's bring in a commodities strategist at hines. thank you for joining us on this important day today, given the announcement from opec+. you had wti at $100 per barrel for this year. has that expectation changed to a talk -- the higher target?

>> the probability of reaching that mark potentially earlier, we had that as an end of your target certainly has increased. like the rest of the market it, i was quite surprised by the move. i think going into it, we were pretty comfortable that opec would stay steady with their current 2 million barrel per day cut which they initiated late last year, but clearly they are concerned about the macro environment. and certainly, this has been something the broader market has been grappling with. the positive fundamentals that are emerging and it certainly be outlook for chinese and more broader asia to growth in recent weeks has not matched up obviously with the sentiment in the market, and that has been driven by in part the u.s.

banking crisis, which has weighed on risk appetite. this measure does send a strong signal to the market that they are going to support prices, support the market in the shorter term. amidst this broader view that the market is getting tighter as demand increases, and we have those ongoing supply issues outside of opec. shery: tell us a little bit about the supply side of things, because we had expected already supplies to get type toward the end of the year, and the stabilization of the banking turmoil had already given a boost to oil prices, up 9% last week already for wti. where does all of this put us for the end of the year then? >> look, i think we have all had this focus on obviously russian

output and the impact of sanctions on that. i think expectations are that it is holding up relatively well. we expect to see a little bit of a disruption from the sanctions on oil products in the order of the 500,000 barrel per day mark that russians have intimated will be lost. there are other issues as well. as demand starts to improve, we are not expecting to see a huge response from the supply-sider more broadly. the u.s. already we are seeing drilling activity start to pull back amidst the uncertain backdrop, and i suspect the u.s. banking crisis could potentially make credit even tighter for the u.s. shale industry itself. that is under threat of a lackluster level of growth, and then that the medic about the lack of investment in the fossil

fuel industry into the oil market itself is continuing to play out. there is very little spare capacity in the market at the moment, really playing to this thematic that the market just cannot respond to increases in demand. as china reopens we expected to see tight in the third and fourth quarters of this year. haidi: so you do not see a further the risk of deeper cuts? the data it when it comes to shipments from trying to have been pretty underwhelming so far. other parameters like south korea's exports have also been worrying. >> i actually think there is probably more a risk of production hikes in the medium-term. the 1.1 million barrel per day cut is probably viewed at least by opec as a temporary measure just to support the market in

the shorter term as we get through this soft batch, and as things start to tighten up in the second have, there may be leeway for them to ease back on some of those production cuts. i think more broadly, they are certainly going to maintain at the overall constraint on supply. they have already intimated previously to this emergency meeting yesterday that they will keep the $2 million -- tim weah barrel -- $2 million barrel per day cut. as far as the outlook for any production adjustments in the short term. shery: -- haidi: russia says it is close to finalizing more policy when it comes to their oil output situation. is that still a meaningful swing factor do you think? what is the biggest swing factor? is it what happens with russia,

u.s. shale, or the strength of the recovery we are watching in china? >> i think the russian situation is probably the biggest swing factor in terms of risks. despite the better-than-expected level of output we are seeing from that market, you continue to see pressure on the russian oil industry or the broader energy complex out of that country at the moment, so things could clearly change quite quickly depending upon the geopolitical environment at that point in time. i would put that down as the biggest risk. and certainly 500,000 barrels per day the russians have intimated will be cut in the shorter term could potentially get a lot bigger, so i think that is something the market is focused on. haidi: great to have you with us today, daniel hynes talking

through the implications of opec's production cut. we will be getting more analysis with commonwealth bank joining us at 9:00 a.m. hong kong time. let's get back to new york. vonnie: a bipartisan group of u.s. lawmakers are taking their concerns about china to california. a new house panel focused on china is said to be planning to meet with the disney ceo and apple chief tim cook. a source as they went to look at how the chinese communist party influences different parts of american society. they will also meet with taiwan's president as she returns from a trip to central america. china is ready to work with malaysia and other southeast asia nations to speed up consultation for it south china sea code of conduct. state media says beijing is prepared to collaborate and ensuring peace in the area. think of it working for nearly 20 years to establish a code of

conduct. pakistan's inflation quickened by a record in march. consumer prices rose more than 35% from year-over-year. the central bank increase the rate last month by 300 basis points to 20%. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. and this is bloomberg. shery: had while aerospace -- hanwha aerospace is building his first commercial rocket with an ambitious target. the company is part of a 70-year-old conglomerate that started as an explosives maker and is now shifting into green energy, defense, and aerospace. the senior executive vp told us exclusively that their goal is to cut large prices by have by 2032 -- half by 2032.

>> some people say hundreds of billions of dollars or trillions of dollars. do you know what percentage of market share we have now? [indiscernible] close to zero, but we want that to be bigger. much bigger than that. we have a foundation in key areas of the space sector like space rocket business and communications satellites, satellite antenna and observations. we intend to grow each business to become a leading company in each respective sector. obviously we will keep looking for opportunities. the industry is evolving and is in the early stage of evolution. >> we are looking at 5 to 10 years. how will you compete with spacex? will that be your big

competitor? >> we do not expect to catch up right away, even in 10 years. space x i believe will remain a leader, the leader for the time being. but eventually. they are not going to keep improving at the current space. >> you see trends developing. reusable listers perhaps here? you do not have those yet. >> realism -- reusability is a critical way to reduce cost. maybe the next generation may not have the capability, but the next one after that should have that. in conjunction with the current government program hanwha is

developing a list or considering developing reusable technology. >> this recent relativity spacelike should not go well. 3d printing. how much are you interested in that? >> very interested, we are looking closely. >> how much will this technology bring down your cost? >> the manufacturing part? >> the 3d printing and the like. >> is a combination of technology and scale. 10% to 20%. eventually we have to bring it down to the space x level. shery: the senior executive vp speaking to rishaad salamat. al japan's government is stepping up support for companies investing overseas.

we hear from the cabinet official responsible next. this is bloomberg. ♪

shery: it is time for japan ahead, but here is a look at the stories where watching. in a few minutes we get the

results of a manufacturing survey for the first quarter, plus jibun but eventually numbers will be out the first hour. shares of nissan in focus after gigi press announced its alliance with renault faces delays of intellectual property, and we are tracking semiconductor manufacturers after trying out foreign minister urges counterpart to withdraw from u.s. led chip curbs on beijing. let's get more from john herskovitz. what is the chance that china will abide? >> i do not think there is much of a chance japan will back down on its restrictions. japan is trying to thread the needle, because china is its largest trading partner and at the u.s. is its biggest security ally. japan has cracked it in a way that is just item 23 that has

placed export controls, and its trade minister has said these are not targeting any specific aim -- specific country. these restrictions will stay in place, and a lot of them concern key components china can use for chip manufacturing. shery: what are some of the other issues at play when it comes to japan's relations with china? >> the foreign minister was in beijing over the weekend for the first visit in about three years, and one of the key concerns japan has recently is an employee of a japanese pharmaceutical company taken into custody at the end of last month. japan is trying to get the release of this employee. there have been 17 japanese employees detained in china since 2015.

there is also the security concerns. japan is stepping up defense spending. it is seeing what is going on in hong kong, taiwan, and as a result japan is embarking on one of its most ambitious advances in defense spending since the end of the war, and a lot of this is concerned with china. also japan is working more with his security advances. it is part of a group that contains the u.s., australia, and india which is seen as a plot against chinese assertiveness in the region. haidi: john herskovitz there. the japanese government says it is stepping up support for companies investing overseas as it seeks to retain an upward trend in profits from offshore operations. the visual who runs the investment offered told us exclusively which sectors he hopes will benefit the most. >> there are wide-ranging

measures from the upswing to the downswing, because in many japanese companies and in particular startups need information around risks and opportunities in foreign countries, so we are happy to provide information to them with the help from our embassies overseas. at the next stage, we need to help feasibility studies on some pilot projects. a list of subsidies to help those feasibility studies on the pilot project, and we are happy to arrange matching opportunities to match companies with foreign countries. we are happy to offer financing like equity and loans to the japanese companies interested in

doing business overseas. finally, it happens sometimes that japanese companies going overseas phase a big hurdle of the investment environment and heavy, excessive regulations overseas. if those things happen, we may ask our ambassadors to intervene, to contact the governments they are assigned to for help or for improvements on regulations. >> so which particular industries or sectors to go see as having the most potential to benefit from your policies? >> my priorities include ict and digitalization and decarbonization. soft industries as well, like tourism, food, and maybe

japanese sake. we hope that we share the spotlight to new areas and soft areas in addition to ict sectors. ict sectors, for example, should include remote medical services, remote agriculture. for example, drones. those areas should be very promising. >> how far do you think is the government's role to help encourage these business decisions? is there a risk the government steps too far into what should be a private-sector decision about what the correct risk is? >> that is a good point. we can offer help, but we should note, recommend or encourage those japanese companies to make

specific decisions, but we are happy to offer healthy measures out of the list of measures. there is a limit. >> from your point of view, what do you think japan needs of us right now? >> because we are facing an aging population, we need to do more promoting businesses overseas and getting high returns into japan should be one of the solutions for growth. if the current trend continues and if we continue to receive dividends from overseas, and returns come to japan, it can be used for raising wages. that kind of merger cycle, if that kind of merger cycle continues, then we will be able

to enhance the potential growth of the japanese economy. shery: that is toshio oya speaking to elizabeth reynolds. we are getting tankan business survey. for large manufacturers coming in at one, which is a bigger deterioration than economists at expected for the first quarter. economist had expected a deterioration from 7 to 3, but the actual number coming in below estimates at 1. manufacturing outlook deteriorating two 3 from 6 in a previous quarter. the nonmanufacturing side of things, the index improving to 28 just lined with economists' expectations. the outlook for nonmanufacturing businesses also improving to 15, perhaps not surprising given that the service sector is holding up. we are seeing domestic travel

subsidies and an influx in foreign tourists back in japan helping the outlook and business sentiment there. we are watching very closely the manufacturing sentiment as we are seeing that deterioration for large manufacturers to 1 from 7 in the previous quarter. we have more to come. this is bloomberg. ♪

shery: here is a quit with check of the latest business flash headlines. china renaissance as it will be releasing for your results because others are unable to get in touch with the ceo and controlling shareholder. china renaissance shares will be suspended monday. the company as recorded and inordinate loss of $82 million from 2022 compared with a net income of $232 million a year earlier. fosun has agreed to sell a stake in an iron company. it will sell estate for $2 billion to nangang which will be

controlled through acquisition. at the company made a plan to offload the holding to nagang group for the same price. these are some of the stocks we will be watching when trade opens in japan and korea. oil producers after the surprise output cut by opec+. tesla suppliers going to move the ev makers deliveries have risen to a record after lowering prices. chip stocks on the radar as china urges japan to refrain from supporting u.s. efforts to suppress the chinese semiconductor industry. plenty more to come. the market opens in tokyo and seoul are next. this is bloomberg. ♪

shery: this is "bloomberg daybreak: asia."

we are watching very closely what is happening to oil prices after the surprise announcement by opec+ that they will be cutting production by more than one billion barrels a day. that is raising concerns about inflationary pressures at a time when we saw that rally last week because the fed's preferred gauge of inflation had actually cooled down. haidi: this as we go into april, particularly a very strong month. have got the best month for u.s. stocks, second-best month historically when it comes to asian stocks. has that doing something in the worst when it comes to upending expectations? shery: what we will see at the open with japanese yen under pressure against the u.s. dollar given what opec+ has done. at the cuts are expected to start next month, and we are seeing expectations from japan as a large importer being felt in the currencies base. aussie gaining ground in the region.

commodity-related currencies were reacting to the fact that we got that survey as well as business sentiment in japan for large manufacturers following to a two year low of 1. the expectation was for around 3, 4. the outlook not looking great. nikkei gaining .5 of 1% at the open. we have seen the strong lead-in from wall street last week, s&p 500 seeing its best week since november. we are seeing also japanese bonds at the moment holding steady, but of course we are watching what is happening with the repurchase announcement by the boj when it comes to jail gb -- jogb. the korean won has seen support given risk appetite returned. nursing more calm after the banking turmoil. pressure on the korean won as a u.s. dollar continues to gain ground. the kospi and caused act --

kosdaq are gaining ground. exports in february fell to the lowest since 2008. we are seeing more of this rivalry between beijing and washington and it new restrictions on america's largest semiconductor maker micron as well. haidi: let's take a look when it comes to the impact we are seeing in the australian open. in sydney, we are expecting big oil majors to move. just a bit of upside as we get the staggered open in sidney. at the moment, materials leading gains and energy seeing gains in the early part of the session as well. we want to check back when other names have come online. when it comes to the aussie dollar, a bit of a lag in it comes to broader outperformers in other commodity currencies. the strength we saw from the norwegian krone not being

reflected by the aussie on expectations it is our be a decision to week and we are expecting a robust debate over whether we get a pause this week given softer inflation readings we have had of late. we are watching a number of other currencies that have been reacting including the yen. two year treasury yields rising. we are seeing that move when it comes to the australian 10 year as well. look at the sustained reaction in oil prices. even as we saw the 8% plunge at the start of the open. still seeing both new york crude and brent crude holding onto the bulk of those gains after opec+ jolting those markets with a surprise output cut. it really upending expectations, central-bank policy expectations as well. lots of questions as to how we see the reopening in china. weaker economic growth factors

weighing into the outlook for energy. shery: let's bring out an next guest who says market volatility will persist for the rest of the year. always good to have you. we have been talking on our shows about how much more we should stash cash under the mattress, but how do you hedge this? >> hedging this, having portfolios in the market remains a challenge. where we are positioning to navigate the markets the rest of the year is to have a sense of balance in the portfolios. so that you can benefit from different asset classes. if one of these asset classes benefit from a change in policy or a change in growth factor. that is the most position we

have at the moment for portfolios. a little bit of cash to deploy at risk assets when there is significant volatility. again, despite the rally in the first quarter, we still think there are now some downside risks given the remaining macro challenges for the global economy. meanwhile, for equities we are focusing on quality factor for fixed income. investment-grade credit, selective emergent market carry. and for equities, china's emerging market. if there is a turn in u.s. policy and dollar trajectory. this is roughly the positioning that we have at the moment for the markets. shery: how are you factoring in the latest announcement by opec+ when it comes to oil production cut? because i remember in your notes saying you actually upgraded perhaps a little bit the growth outlook for europe because of

declining energy prices, but this does not seem to be the case anymore. >> for europe the main factor is natural gas prices, and prices have fallen quite a bit from the peak last year. that will help the region achieve lower headline inflation , and perhaps for the benefit of consumers in the region. that is the reason we marked up our expectation for the region recently. for crude oil prices for sure, it will be a slightly negative factor in terms of headline inflation trajectories for most of the economies around the world and importing countries especially in asia. this supports our relatively defensive view on the risky assets, because this is not the only factor that we are watching. keep in mind that the u.s. has been drawing down, reducing its strategic oil reserve for quite some time, so eventually they

need to replenish that. certainly this move by opec does not make it easier. so in our view we are going to see a floor for oil prices going forward, and for that reason we are forecasting conservatively on how much disinflation we can achieve before the end of the art for countries like the u.s. and the euro zone. haidi: when it comes to china, obviously you are sitting on more of the cash file that is ready to deploy. at what point would you be ready to deploy in chinese ss -- as its? >> we are not there yet and are highlighted this back in january when we had this interview. we continue to maintain overweight position in china, because we still think we have

not seen a full impact of reopening on data and earnings data yet. so we are going to get that starting with bmi that will be released pretty soon today, and also corporate earnings data in the remainder of the second quarter. we are still waiting for the data to show up here, and we are confident that is going to happen. in the second half of the year, when you put the strongest face of the reopening behind you, certainly market chatter will likely shift to the limits of this growth spurt, and that is when you can reassess the position. we are not there yet, and we continue to believe that is the case for the time being. haidi: do you continue to be bearish when it comes to greenback versus g10? >> so we have selectively begun to express our bullish view on

non-dollar currencies in the g10 space, and they yen is one of weakened in the past few days, but we have been maintaining for quite some time the wage dynamic and inflation dynamic have shifted in japan, and this is what we are beginning to see. shinto had been very strong. that will nudge the bank of japan to a significant overhaul of its yield curve -- yield curve control program. we think that will be effective for the currency, and at some point we will reach the peak rate in the u.s. if you come by two factors together, we still think given where the valuation is for the yen, certainly the yen will appreciate against the dollar, so we continue to maintain our

bullish view on the yen. for the euro and other european currencies, we are waiting for opportunities to express a more bullish view there. it is more of a waiting game in our view, a timing game. haidi: homin, always good to have you with us. let's take a look at movers reacting when it comes to the shock move by opec+ to cut capacity by over one million barrels per day, reigniting concerns about renewed inflation and what this means for central-bank policy going forward. in the south korean market inpex seeing some of the strongest gains up but 5.25 of 1%. switching out the boards deceit major players where watching in australia. we see a sixth straight day of gains when it comes to the asx this monday. broader energy index gains of almost 5%. also watching ampol and the

likes of woodside with a staggered open and sydney. let's get you to vonnie quinn. vonnie: former u.s. president donald trump is planning to plead not guilty to charges stemming from his hush money payment way porn sartorius 2016 election campaign. it lawyer told cnn the payments were investigated by the federal election commission and the justice department. trump will be arraigned on tuesday. >> we will look at every potential issue we will be able to challenge, and we will challenge. i anticipate a motion to dismiss, because there is no law that fits this. somehow a state prosecutor has taken it -- a misdemeanor and hobbled together a felony. vonnie: beijing is launching a cybersecurity review of imports from micron, america up as best largest chipmaker. at the chinese government says it wants to ensure the integrity

of its information structure and supply chain citing that's of the concerns. it is a less offensive in the chip war between the world's top two economies. the finish my minister has lost a close pulmonary election to a pro-business opposition group. official figures showed the social democrats fell to third place, while the national coalition won the most seats. the party leader is declared victory but it have to work with one of the other blocs to form a government. >> i think that finished people want change -- finnish people want change. i will start negotiations with both parties. we have to fix our economy. we have two do reforms to boost economic growth. vonnie: a bipartisan group of u.s. lawmakers are taking their concerns about china to california. a new hospital focused on china is said to be meeting with the

disney ceo and apple chief. a source as they went to look at how the chinese communist party influences different parts of american society. they will also meet with taiwan's president as she returns from a trip to central america. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. shery: still ahead, ey will take us through their latest report on global trends as alibaba and jd.com repair new listings and hong kong. the latest on oil markets as opec+ shocks with plans for a one million barrel per day cut in production. this is bloomberg. ♪

haidi: let's look at other energy stocks we're watching in australia as the rest of the asx comes online. trading when it comes to woodside and santos is still watching ampol seeing the strongest gains up by 5%. santos benefiting from the news that opec+ will be cutting up but by over one million barrels per day. santos up by 4.6% by this point as we are watching oil expiration and production companies seeing the biggest gain across asia after the

surprise opec+ production cut. shery: let's get more on that decision and bring into canaan. we are seeing analysts and scrambling to change their forecast for the oil price. su: goldman boosted their brent oil forecast, and they were already bullish because of macro data out of asia. to give you an idea of just how surprising this is, take a look at the bloomberg. we had seen will surprise -- oil supplies tight into the back off of the year. despite that the oil producers said they would hold city to their at the targets, and even as it is friday we were told delegates were signaling there would be no change. there was a major change. we are told by some people you know how opec ministers work. they like to catch people off guard, at which they did. and cutting output by one

million barrels per day to take effect intimate. saudi arabia leading the cartel with its own 500,000 barrel per day's reduction. most of the other cartel members joining in. iraq, kuwait, the uae, and russia contributing. this is something the white house is not happy with. look at the price action. closed after rallying late last week and shut up immediately 8% and has pared back only slightly as we got further into asia trading. when veteran saying opec+ clearly once a higher oil price. at the group is following through on being proactive and ahead of the curve and is trying to rip oil prices from the grip of macro sentiment. if you look at how brent crude is trading, you will see a similar 8% spike right at the

start of asia trading. looks like it is holding steady as we get later into the asian session. what is clear here is that traders, analysts, and many economists may have to rejigger their outlook based on this move. haidi: we are seeing indications of disapproval from the government. su: the white house clearly once you send a message they are not happy with this. we know the biden administration has a bit of a dustup with the saudis over oils in the past, so this could intensify that. the biden administration putting on a message, at least i white house spokesperson saint they will continue to work with oil producers and consumers with a focus on gas prices. you see right there in the bigger picture chart that oil and fall into a 15 month low on concerns about the banking turmoil, but it had already come back up. at that it reinforced the view that opec was going to stay on

pat. let's look at asian energy and related stocks are starting to react to this big move. a lot of green on the screen. the initial impact of the cuts are going to end up to about 1.1 million barrels per day. beginning in july due to the extension of the russian existing supply reduction, we will see even more oil come off the market about 1.6 million barrels per day less that have had previously. that is a bit of a shock. stay tuned. shery: su keenan the latest on oil prices. let's look at how commodity currencies are doing at the moment, because we saw the big reaction when it came to the norwegian krone, the canadian dollar as well. the aussie not getting hit that much. we were expecting upside. we are seeing downside of the japanese yen, a big oil

importer. take a look at this comment on our blog who is pointing to a numbered study of the average fx response coinciding with oil moves. he says the most positive impact from large oil moves are for the russian ruble, the colombian peso, the malaysian ringgit, but negative or the indian ruby, the turkish lira, and the japanese yen. you can get more on how oil and the shock announcement on opec+ is affecting today's trading on our markets life abroad on mliv . get our market rundown and one click, and there is commentary and analysis from bloomberg's expert editors. this is bloomberg. ♪

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shery: hanwha spaces building south korea a's first commercial rocket within a vicious target, matching elon musk of us spacex in price within a decade. it is part of a 70-year-old conglomerate that started as it exposes maker and is now shifting into green energy, defense, and aerospace. the senior executive vp told us exclusively their goal is to caught -- cut launch prices and have by 2032. >> some people say hundreds of billions of dollars in 10 years or trillions of dollars. do you know what percentage of market share we have now? [indiscernible] it is close to zero. we want that to be bigger, much bigger than that. we have picked up a foundation in key areas of the space after,

like space rocket business, munication satellite, satellite antenna and observation. we intend to grow each business to become a company in each respective sector. obviously, we will keep looking for opportunities. the industry is evolving and is in the early stage of diversion. >> we are looking at 5 to 10 years. how would you compete with spacex? will that be your big competitor? >> we do not expect to catch up right away, even in 10 years. space x i believe will remain a leader, the leader for the time being. we will be not leader for the time being. they are not going to keep growing or improving at the current pace. >> you see trends developing

using reusable boosters. you do not have those yet. >> reusability is a critical way to reduce the cost. maybe the next generation may not have the capability, but the next one after that should have that. in conjunction with the government program, hanwha is developing or considering developing reusable technology. >> we had this recent relativity space launch that did not go very well. they did 90% of it through 3d printing. how interested are you in that? >> very interested. >> how much with this technology bring down your cost? >> the additive manufacturing

part? >> the 3d printing and the like? >> is a combination of technology and scale. you combined the two, 10% to 20%. eventually we have to move down to the space x level. haidi: hanwha senior executive vice president speaking to rishaad salamat. tesla delivered a record 420,875 cars in the first quarter beating analyst expectations. the automaker had/prices earlier this year -- slashed prices earlier this year to appeal to customers battling inflation. endeavor group is said to be nearing a deal to acquire world wrestling entertainment.

the entertainment conglomerate could announce a deal soon. bloomberg reported in february wwe's executive chairman was looking to get $9 billion for the company. shares have gained 33% this year, giving it a value of $7 billion. china escalates the tech battled with a national security investigation into u.s. chipmaker's micron's product. we discussed the implications next. this is bloomberg. ♪

vonnie: this is "bloomberg daybreak: asia." opec+ has announced a surprise

oil production cut of over $1 million -- one million barrels per day. the resurrection could add to inflationary pressures across the world forcing central banks to keep interest rates higher and crippling economic growth. the white house responded by saying the cuts were ill advised. that ubs will cut as much as 30% of its staff after completing a takeover of credit suisse. as with newspaper says the move could affect 11,000 workers in switzerland, plus a 25,000 more worldwide. as separate development as was prosecutor says they have opened investigations into the deal. they went to identify possible crimes at leading up to the credit suisse collapse. china is ready to work with malaysia and other southeastern asian nations use bit of consultation ray south china sea code of conduct. setting the premier, beijing says state media is prepared to -- state media says beijing is prepared to collaborate. they have been working for nearly 20 years to establish a

code of conduct. pakistan's inflation quickened by a record in march on higher taxes and energy prices. consumer prices rose more than 35% from a year earlier. the latest print made to the case for the state bank of pakistan to raise his key interest rate tuesday. the central bank increase the rate last month by 300 basis points to 20%. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. shery: we have the pmi numbers from several countries across asia. for japan, you might manufacturing number four jibun bank coming in for the final number, 49 .2. still in contractionary territory, perhaps not surprising given the soft tissue survey we got showing the large manufacturing index fell to the two year low. the korean number in

contractionary territory. it has been below the 50 level since july of last year. korean exports have been declining since late last year. semi conductors, not doing great. demand from china not helping. vietnam is also back into contractionary territory, 47.7. they had for one month gone into expansionary territory above 50, but it is back down. philippines, indonesia, thailand still in expansionary territory above 50 but perhaps seeing or downside these when it comes to thailand. haidi: opec+ of us because shock announcement to cut production by over one million barrels per day and how that leads into the inflation outlook and rates outlook as well. take a look at the picture across asia when it comes to equities. we are seeing broad upside but strong leadership from the energy sector. nikkei225, japanese energy up

3.7% against softer gains for the rest of the index. kospi is pretty much flat, but stronger gains across energy names. in austria, asx by .8 of 1%, probably more conscious -- cautious. it is our be a decision week and heighten talk about a pause. this could add more uncertainty. here we are seeing the energy subsector getting by just shy of 4%. kiwi stocks trading flat at the moment. shery: we are watching semi conductors asia very closely. china has opened a new front in its escalating tech battle with the u.s.. it is launching a cybersecurity review of imports from america's largest chipmaker micron. let's bring in bloomberg's asia text editor peter elstrom. as significant is this new

measure from beijing? >> it is an intriguing step by beijing. the cyberspace administrator is launching this security investigation into micron. micron makes memory chips that goes into all sorts of wings, smartphones and pcs. those are not the weight you would be concerned about security. it is an unusual place to look for security breaches. it comes within the broader context of the u.s. and china talking over technology broadly and semi conductors in particular. in october, the biden administration imposed a sweeping array of restrictions on china's ability to buy semi equipment from the united states. it has been able to get its allies, the netherlands and japan on board with restrictions. this looks like a pushback that china is signaling it is the opportunity to retaliate in some

ways against american companies in this context. haidi: the chinese economic reopening was seen as one positive element for chipmakers. it does this threaten the comeback? >> you are exactly right. the memory chip market as been going through a rough few months where prices have contracted. you have seen inventories build up across the industry, and our concerns those prices will fall. we will get samsung reporting its earnings later on. it's earnings are forecast to fall something like 90%. i think what china is signaling is they have concerns about micron in particular that would you be directly targeted at an american manufacturer. memory chips are interchangeable, so if chinese companies stop buying from micron, they would be able to turn to alternatives like

samsung or high next -- hynex. it may be a signal it can decrease demand for front and shift that to other companies. haidi: peter elstrom there running less with the latest on micron interview. the boston fed president susan collins says the latest inflation data as not changed policy outlook. she thinks there is more work to do to keep prices in check. she spoke in an exclusive interview with michael mckee. >> starting with pce inflation, it is about what was expected. that is some positive news. let me say two things about that. the monthly data is really noisy . one month of a move in a more helpful direction is not something that indicates a

sustained change. at the other thing i will say is if you are recognizing the high elevated numbers we saw in december and january, this a bit lower number we expected means the three much average is about with 12 month averages. so that is not a lot of progress. we do still have more work to do anymore to see to note that inflation is on a sustained downward path. >> you are on record saying your favor one more move by the fed. does this locket inform may that you do it because inflation is still at a high level and you do not pause for a month? >> i think i am on record as saying i am highly data-dependent. my assessment at the last meeting with the summary of economic projections did suggest an additional rate hike and pausing and holding over the

year, but i need to assess all of the data that will come in between now and when our next meeting is in early may. where i am at the moment, the new data that i have seen just in the past week has not materially changed how i am thinking about things, but i do not make a decision as far in advance. >> the markets have looked at the data and our pricing and four rate cuts this year. our traders crazy? >> there was a range of view. inflation is too high. when we talk about price stability, to me that means a level of low stable inflation. everybody is thinking about inflation. and that doesn't mean we have more work to do, and what history is told us is you need to have condition sufficiently tight and hold the course in order to know that you have in a sustainable way gotten inflation

going back to what the target is a. >> spending decelerated significantly during the month of february according to this report. do you worry about going too far and tipping the country into recession? that is the standard view of what the fed does. >> it is absolutely balanced, and i think it is important to understand there are uncertainties, there are risks. in particular we need to balance the risk that we do not do enough. we are not sustained, do not hold the course and do not bring inflation down. inflation is with a costly to businesses and households, so that is important. at the same time, you are absolutely right. i do monitor the data looking at when we might see the economy turning, and some of the slower data is helpful in that context. that is what we would hope to

see. at the same time, early days yet in terms of assessing whether we have gone as far as we need to go. shery: susan collins there. coming up next, alibaba and jd.com's upcoming listings good to be breathing life into the struggling tech sector. we discussed the ipo outlook next with ey. this is bloomberg. ♪ and we know 80% of couples sleep too hot or too cold. introducing the new sleep number climate360 smart bed. the only smart bed in the world that actively cools, warms, and effortlessly responds to both of you. our smart sleepers get 28 minutes more restful sleep per night. proven quality sleep. only from sleep number.

shery: this is how asian markets are trading at the moment, broadly higher. msci asia-pacific index up .2%. energy is leading gains right there given wti at the moment is adding and extending gains, more than 6% after the shock announcement by opec-plus at that they would be cutting production by more than one million barrels per day. we have seen a gain of more than 9% weekly last week for wti. with expectations of types of light later in the year, we are seeing the upside in energy related stocks. haidi: definitely the dominant theme at the start of this new trading week. we are also watching the ipo market this year, because we

have a new report from ey saying ipo volumes fell in the second quarter -- first quarter of 2023. we are seeing glimmers of hope in the second quarter. alibaba and jd.com preparing for big debuts. joining us is the ipo leader at ey. a lot of excitement around the restructuring of alibaba and the dissemination into six smaller sized entities at what that means for the public stings market. will that drive sentiment and confidence going forward? >> good morning, thank you for having me back. when you look at the first quarter, the numbers are down from 2022, which is already way down from what we have seen in 2021. the one observation we have noticed is the big drought in mega ipo's, ipo's they can raise

over one billion dollars u.s. or more. we had 22 ipo's last year. in this quarter we only have one. there are a lot of actually big ipo's waiting on the sideline when the markets become more stable, and investment sentiment comes were positive. when we first came into this year, the market sentiment was quite good, and the unexpected inflation and people started to talk about the interest rate hike needs to be continued, and we saw a lot more volatility. that is why these bigger ipos are biding their time. it does not help the banking crisis we have seen in the u.s.

and spreading into your. the ipos from these e-commerce giant will help the market. i think they will only come to the market when the market conditions are more favorable, because there are a lot of ipo's waiting on the sidelines. as you mentioned earlier, it is really energy sector that is actually dominating the ipo market. that happens in q1 as well the first quarter of this year. of the 10 largest ipo's globally, four of them came from the energy sector, coal mining, so the power, electricity, and batteries. haidi: do you expect the dominance by energy to continue? and how much does it change assumptions going forward? you talk about market conditions. they could worsen if we see prolonged inflation with energy prices being higher.

we could see a prolonged higher rate environment too. >> that is why we are expecting to see more larger ipo's to come into the market in the second half of the art rather than in q2 of this year. in terms of technology ipo's, they are still dominant in terms of number, but the valuations have come down a lot. they are not getting the mega ipo's. we are seeing energy views catching it attention right now. if we look at the past two years new ipo share price performance, ipo's they came to market in 2021 and 2022, over 80% of those ipo's are trading below their ipo prices. 2/3 are trading at more than 50% down from ipo prices. it needs it investor sentiment to come back before they will

actually decide to take on a riskier class of assets, which are ipo stocks. shery: how are geopolitical tensions being factored in by the expectations of more listing , and what sort of investors are attracted to certain markets? >> the good news is we are seeing chinese companies coming out of the country and giving overseas ipo's again, and they are mainly going to the u.s. and the switzerland stock exchange. but what we are not seeing our mega ipo's coming to u.s. markets get area these are typically the smaller sized mega deals that used to go to the market up to 2021 mid july. as you mentioned about the geopolitics, that is why the

chinese authorities, the stock market has standardized the registration system and process in order to entice more local ipo's to stay at home. the hong kong stock just finalized chapter 18 allow for chinese companies to be listed there as well. there are chinese companies being enticed to state and the local chinese market or come to the hong kong market. shery: when it comes to the geo-political side of things, we have seen semiconductors and that whole industry take a big hit. the most recent news has been beijing launching a cybersecurity review of imports from micron as well. what is the outlook from the sector when it comes to demand for listings and activity by investors? >> if we look at the pipeline of ipo's, we are seeing there are quite a few chipmaking companies

in the ipo pipelines without mentioning names. some of them, overseas it chipmakers decide to go to the u.s., and we are seeing local chinese companies as well. we may see some kind of decoupling in that respect. chinese chipmakers will not risk going to the overseas market and will decide to stay in the local chinese market given what is happening between the u.s. and chinese government. shery: good to have you with us, global ipo leader at ey with the latest trends to watch out for in that space. get a roundup of all of the stories you need to go to get your day going in today's issue of daybreak. bloomberg subscribers go to dayb on your terminal. you can customize your settings so you only get the news on the industries and assets that you care about. this is bloomberg. ♪

haidi: china evergrande as passed a self-imposed deadline to complete its restructuring agreement. let's bring in our china editor kevin kinsley. where are we now? it is two weeks since the

long-awaited that proposal was released. >> we are awaiting the restructuring support agreements evergrande said they hope to tickets on -- signed before the end of the month. this is the latest self-imposed deadline the company as met. it only did two weeks ago. we are back in this wooden gain -- waiting game. shery: we have seen more supportive measures coming from beijing when it comes to the property sector. what about other developers? how is the broader industry doing now? >> we got news that preliminary data shows new homes rose 25% year-over-year in march, the second straight increase. he had almost two years of straight declines.

it appears as if we have had some sort of a bottom. since sales have fallen so much, we are talking about rising off of a very low base. we are headed in the right direction, but there is far more to go to return to some sort of normalcy in the sector. shery: kevin kingsbury with the latest as we look ahead to the opening of the markets. here is a check of the latest business flash headlines. china renaissance says it will postpone releasing results because auditors are unable to get in touch with ceo and controlling shareholder. china renaissance shares will be suspended for monday. the company has reported an indoor net loss of $82 million for 2022 compared to a net income of $232 million a year earlier. fosun has agreed to sell it 60% stake in a parent company.

it was a mistake for to begin dollars to nangang which will be controlled by citic. the company terminated a plan to offload the holding another group for the same price. oyo hotels says it has filed for an initial public offering in india without disclosing the amount it seeks or other financial details. the ideal finding is at second identical public after india's stock market regular that it raised multiple red flags on its earlier tried in late 2021. oyo had a file to raise $1 billion in its original effort. haidi: some of the stocks we're watching ahead of the markets opening in hong kong and china. we continue to keep an eye on oil producers on the surprise cut by opec+. no surprise on how we are seeing temporarily and leading broader equity gains we are seeing across the region.

tessa supplies, ev delivery maker rising to a record after lower prices. we see that playing out with supply names. do not forget to look at chip shares as well, beijing launching a cybersecurity review of imports from micron. the latest escalation of the semi conductor battle with the u.s. we see contagion fears playing across the sector still struggling to get back on its feet after a tough few months. still to come, a bank director commodities have research on the impact of the surprise opec+ overproduction cut. plus alpine macro explains why they expect a chinese bank tuesday accommodative. ♪