we are coming down to asia's major market opens. what i am most excited to see as the trading for sk hynek's. we had those numbers returning to operating profit after four straight quarters of losses. it surprised a lot of people because it was well higher than what the average analyst estimate had been. paul: nobody was expecting those numbers. we got a healthy profit. it could move the cost be as a whole. sk hynek's definitely one to watch. worth watching china as well. we had somewhat of a rally yesterday on the news of the eminent rrr cut. plenty to watch. annabelle: we will turn to how sk hynek's comes online. we will wait for that to come.

we will recap those numbers. it was a surprise operating profit. really big demand coming through for high end chips. those are used to help train ai tools. . the company saw a big demand. operating profit came in at 346 won. compare that to the average analyst estimate, 170 billion won loss. in terms of the market reaction, we have sk hynek's coming online this morning. trading fractionally higher. up .4 of a percent. 1.1% in the green here. not doing too much to boost the cost be so far even though it is one of the heaviest weightings on the index. continuing to track the korean won. gdp numbers to note.

we had those from south korea a couple hours ago. results telling us growth held up in the first quarter. recovery could help the bok to keep rates higher for longer. take a look at how japan is very. just coming online this morning. fairly flat so far. not too much movement in either direction. the u.s. session overnight pulling back from the intraday highs. at pretty elevated levels. a level of uncertainty given we are early in on the earnings season. paul: let's get you across some breaking news on the bloomberg terminal. we are hearing from the federal reserve. raising the rates on the emergency loan program to stop arbitrage. the fed raising the rate. says banks can still use the discount window for liquidity needs. it is going to end bank term funding program on march 11. the rate to week is going to

ensure the bt fp does continue to support program goals. the change to the loan rates are going to be effective immediately. the fed raising the rates on loans to banks issued under the emergency lending program to prevent arbitrage. let's took a look at how we are trading in the bond space. not a huge amount of movement. the yield and 10 year keeping up to 41820. take a look at how we are tracking in australia. modest positivity on the asx. a mixed picture in terms of sectors. financials kind of flat. heavyweight material sector performing strongly. better by 1.2%. the aussie dollar holding steady. just below the 67th u.s. level. we will hear from the prime minister later on. he will be addressing the press club in two hours. . we will hear more news on the tax cut plans in australia.

crude prices, 7543 for new york crude. we have seen u.s. stockpiles shrinking more than expected. a gas production in the u.s. for non-cold-weather. helping to support crude prices as well. let's get to our next guest. he is neutral on china equities. chief aipac investment strategist at the blackrock investment institute. thanks for joining us. we went to star in china. we have a 50 basis point cut to the rrr being foreshadowed. a promise to improve the quality of listed as oe's. still a little bit light on detail here. china is cheap of course. how are you approaching the market? >> great to be with you. you are absolutely right. i think the market is going to continue to wait and see for validation of these interesting rumors around the potential market stabilization fund.

valuation is inexpensive. chant evaluations relative to its own history and by comparison to mobile peers look very cheap. on the other hand, we have these ongoing structural headwinds around the geopolitics, around property and local animal spirits. a kind of collapse in confidence among the investor entrepreneurial class. we are waiting for the spark to take advantage of the cheaper valuations. i think it is too early to declare categorically this is the spark. the market up 7% the last two days. we are watching with great interest to see if there is more here. paul: do you buy at these levels or is it picking the bottom of the china market to dangerous of the game? >> we are neutral. we are not to constructive. we balance the structural forces. the headwinds which are not going away. they are going to persist and

continue to create headwinds over the medium-term. i think there may be some selective opportunities may be in companies with balance sheets that allow them to do self-help. make their own buybacks rather than relying on a government stabilization fund. it is a difficult situation. it is very uncertain as to what is going on. last week on a devils, i thought the premier's speech was interesting. he said 2023 had gone approximately fine for the china economy. grown more than the target. fated to resort to a fiscal splurge. it is not obvious the chinese authorities are too concerned. we are in this difficult way and see moment to see if there is more to this story. more reality. and if there is, that could be encouraging. i think the market is going to wait for action. we are short on confidence at the moment. just a story is not enough.

annabelle: where you are overweight is japan. it has been a strong start for the nikkei over the course of this year. the rally is lacking breath as well. does that concern you ap could be near? >> we are constructive. have been bullish japan for a few quarters. there is a lot of nuance in the japan story. i think we should not miss the point. japan has moved from deflation to inflation. that is obvious and extremely important in two rights. first, the earnings outlook if you have to call. as japanese corporate could benefit from inflation, that transforms the earnings outlook in positive direction. japanese savers have around $7 trillion of saving in cash or something like cash earnings zero. zero is a great return in time

of deflation. in inflation it is much less good it is hard to know how much of that 7 trillion is going to move. some portion of the 7 trillion is going to have to move into real assets which could include real estate. other equities is the obvious one. we are going to see that structural flow over the quarters and years ahead. annabelle: are there any specific sectors that money would flow into? anything you are watching? >> what i am watching as the evolution of the japan story. oj the next months and quarters. what is critical is this is not so much to do with japan's excellent export companies into the world. this is much more to do with japan meeting japan. a reinvigoration of animal spirits. a renaissance if you like. it is much more domestic consumer. japan meeting japan i guess. rather than japan's brilliant

exports benefiting from a week again. it is a evolving story. the markets are not on top of that for now. annabelle: that was the chief aipac investment strategist at the blackrock investment institute. we are hundred 10 minutes into the session so far for trading in korea. keeping an eye on what is happening with sk hynek's. we had seen that stock slipping into negative territory. even though we saw the company posting a surprise fourth-quarter profit. let's get more on the earnings and bring in our asian stocks reporter in seoul. i am sort of surprised by the stock market reaction so far. talk us through the numbers and the reaction of your seeing as well. -- reaction we are seeing as well.

>> the sk hynek's raising a 1% gain earlier and turning to negative territory in this early trading session on thursday. that might be reflecting concerns from investors after this really strong surprise fourth-quarter which was driven by this higher-than-expected demand from pcs, smartphones, ai. there may be concerns clients may have to reduce their orders for the first quarter after this really strong fourth-quarter that has help post the turnaround in their fourth-quarter operating profit. you have to see the sk hynek's was one of the strongest performers in south korea last year. the shares rose 90% in 2023. that is ahead of the key rival samsung electronics. that has been driven by expectations of being ahead in the ai race. shares rising 90% was one of the strongest annual performance. the investor may be taking a breather at the moment.

paul: what are we hearing from sk hynix in terms of its cap plans? >> sk hynix has given guidance that shows us an increase but it has not shown where that will go to. that would be the key question coming from investors during the conference call this morning should there curious where that will be spent. whether that will go to the ai chip related area or others. that could affect the supply and demand situation that really affects chip prices. that will be one of the areas investors will be curious. the other is investors will ask sk hynix about its plant in staying ahead of the ai race. investors i spoke to say they expect sk hynix to remain ahead of simpson electronics. sk hynix is one of the key suppliers of of chips to nvidia.

that has helped sk hynix shares outperform samsung's electronics last year. investors will be curious how long that competitive edge will last. annabelle: that is what i'm curious about. we have seen samsung and macron. other ones looking to get more of the market for chips. what is your sense from the analysts and investors you are speaking to so far? >> it looks like a lot of people i have spoken to don't want to leave the party too early. they seem to believe there will be several quarters to go for the memory chip profit share upturn going ahead. they don't want to leave the party too early. some of them expect sk hynix to be staying ahead in the ai race. engineers at samsung and sk hynix must be working hard to stay ahead in this important

area for the tech industry. we will have to see how that goes. paul: asia stocks reporter in seoul. updating us on sk hynix. still to come, boeing is under pressure in late trading after the faa halts expansion of its max jet production for further safety checks. further details next. this is bloomberg. ♪ j.p. morgan wealth management knows it's easy to get lost in investment research. get help with j.p morgan personal advisors. hey, david! ready to get started? work with advisors who create a plan with you, and help you find the right investments. so great getting to know you, let's take a look at your new investment plan. ok, great! this should have you moving in the right direction.

thanks jen. get ongoing advice; and manage your investments in the chase mobile app. thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh wealth-changing question -- are you keeping as much of your investment gains as possible? high taxes can erode returns quickly, so you need a tax-optimized portfolio. at creative planning, our money managers and specialists work together to make sure your portfolio and wealth are managed in a tax-efficient manner. it's what you keep that really matters. why not give your wealth a second look? book your free meeting today at creativeplanning.com. creative planning -- a richer way to wealth.

>> we fly safe plans. we don't put airplanes in their we don't have 100% confidence in. i am here in the spirit of transparency to radon is the seriousness of what you asked. to share everything i can with our capitol hill interests and answer all their questions because they have a lot of them. annabelle: that was boeing ceo dave calhoun speaking in d.c. really just the latest in this crisis that has taken hold at boeing following the panel blowing off of a new max nine operated by alaska airlines.

the stock reaction is noticeable in boeing after hours. pairing some of the losses but still trading lower. as some of the major boeing supplies, not seeing too much of a reaction so far. something to contract closely. get more from a transport reporter. one of the strongest understanding so got out of this is following the incident, the scrutiny on boeing is not going back to what it was before. >> not returning to the status quote. what we heard from the u.s. federal aviation administration the last couple hours is this is an escalating response into what they see as unacceptable quality lapses in manufacturing. what they have announced is they are not going to permit expansion of boeings 737 max line. the max nine has been involved

in the alaska airlines door. boeing was going to go from 38 planes a month. it produces an output to 50 the next few years. this has a direct impact with billions of dollars on the line. how much cash it generates and on january 31, we are expecting boeing with its results to deliver annual targets for 737 max deliveries. that may completely change as the faa scrutiny continues and builds. paul: interesting timing because boeing has handed over its first 737 max to a chinese airline for the first time since it was grounded in 2019. is there any risk for boeing in the china market after this incident? >> boeing has taken a huge reputational hit from ongoing quality lapses in manufacturing and quality assurance, quality control. the first 737 max overnight to

be delivered to china in nearly five years. despite the element of good news, there is a slew of bad news happening almost on an hourly basis with boeing right now. as we heard from the faa cracking down on production, they did approve the inspections needed to get the 737 max 9s back up in the air. we heard in the last hour or so from the affected airlines, united and alaska saying they're going to get their first points back into the air sometime later this week. annabelle: a significant setback for boeing overall. >> absolutely. the pressure it is under not just from regulators but from capitol hill ultimately, this is something boeing management is firefighting on all fronts. clearly unhappy customers who are already sounding loudly they are doubting their going to take delivery of the max 9s and the

future max 10 aircraft which has yet to be certified. there is a lot at stake. clearly it has to do a lot to try to win the trust of not just airlines but also the regulators. paul: burke's transport reporter in hong kong. because the shares fell in extended fourth-quarter earnings. a warning as well of yourselves growth to come. detroit bureau chief joins us for more. why is tesla's growth rate slowing down? >> they cut prices dramatically so that brings revenue down. automotive revenue in the quarter only grew 1%. vehicle unit sales are slowing in every market. they are still growing. in china, pyd has surpassed the company. there is a lot of domestic competition in the chinese market. the u.s. market, consumers are slowing down purchases.

that market, u.s. eb sales growing. not nearly as fast. you have competition coming in. korean, hyundai and kia doing well. general motors is getting into the game. you have slowing growth. more competition in all of these markets. tesla has cut prices 25, 30 percent in some of these markets. all that conspires to bring down revenue growth. they are not even giving us guidance as to where they will be. growth for the year last year was 20%. growth rate from 50 to 20 and no guidance for where the lower growth rate will be in 2024 that has investors nervous about where is the bottom on the tesla growth story and isn't even a growth story anymore? annabelle: it tells us perhaps the days of 50 or 30 to 40 growth you're on your is not

going to be the case for 2024. >> if they cannot grow at 20% faster than 20% last year when they have got more competition coming this year. it is going to be pretty troublesome to they have new vehicles coming with the cyber truck and they are working on a smaller vehicle. the smaller vehicle will not show up in 2024. unless the cyber truck does great things for them, it is going to be difficult for them to get back on the growth pace they were. with revenue, they are not going to be able to do it unless they can raise prices. given where interest rates are, that would be tough to do. i don't see where they get the growth in the automotive side. the code in energy storage but that is still a small part of their business. paul: rising prices in the environment of a price war could be difficult. how is that impacting profits? >> profit margins are ok. gross margins were where the street had predicted.

they missed on earnings and revenue. when you don't sell as many vehicles and growth rates are slowing and you're cutting prices as dramatically as they have, it is tough to keep your profits up. they have sustained strong margins. 17.2% are solid but that is not much better than general motors. other car companies have similar margins. they are starting to look like any other car company as opposed to this tech company they have been admired as for the past 5, 8 years. annabelle: that lack of admiration being reflected in the after hours trading we are seeing so far. that was our detroit bureau chief joining us. you can get a round above the stories you need to know and to get your day going in today's edition of daybreak. limberbutt subscribers good today bigo on their terminals. it is available on mobile in the bloomberg anywhere app.

you can customize your settings so you only get news on the industries and assets you care about. more ahead. this is bloomberg. ♪

gusto is easy, modern small business payroll. starting at just $46 a month. but it's so much more than that. with gusto, paychecks are deposited in just a few clicks. gusto calculates and files your payroll taxes automatically. gusto offers health insurance for nearly any budget. and gusto even connects you with certified hr experts.

it's fast, easy, and affordable. gusto is payroll and benefits built for small businesses. get started for free at gusto.com paul: you are watching daybreak asia. the latest stories from around the world. -- shipping giant monomeric says two ships turned back after a navy as core that they missile attack. the u.s. military says it shutdown two of three missiles militants fired from yemen while another fell into the sea. the houthis have continued attacks despite two weeks of strikes led by u.s. forces. russia has accused ukraine of shooting down a military plane carrying 65 ukrainian prisoners for an exchange. the defense ministry in moscow says the aircraft crashed in

russia's el dorado region carrying everyone on board. -- killing everyone on board. ukraine is calling for an international investigation. a hacking gang says it is behind a ransomware attack that shut down some of the operations of a firm partly owned by j.p. morgan and goldman sachs. processes trillions of dollars of lending transactions every month. it says unauthorized access to systems on tuesday caused some to go off-line. it wants payments for an exchange for unlocking the systems. canada's public inquiry into foreign interference will examine allegations india tried to meddle in recent elections. decorative flame already elevated intentions. inquiry was announced last year after leaked documents claimed china try to interfere in the vote. public hearings are set to begin next week. annabelle: let's take a look at

how you futures -- help in you futures are coming online. stocks putting to weakness ahead of the start of trade. continuing to track expectations around the ecb. we have had policymakers signaling they are unlikely to cut anytime soon. the outlook for a recession is continuing to build. limburg economic saying the ecb has finished hiking. the first cut could be this year or even soon. where we are seeing rate cuts coming up, china saying it is putting the rrr ratio for banks within two weeks. more on that surprise move ahead. this is bloomberg. ♪

>> what i think they are trying to do is signaling we don't care about the stock market.

you can see that with it going down year after year, but we have to set of floor that the government is behind the system. they are trying not to overpromise. the question is will that be enough. >> i think there is fiscal space there. they seem not to be using that directly or indirectly through the banking system. i don't know why you would want to re-lever rather than use fiscal policy. >> those where the gas we spoke to about the announcement of a reserve ratio by the pboc. the pboc governor made the announcement wednesday in a rare public foreshadowing of a policy change. let's get straight to that. very unusual for this

foreshadowing, especially a couple of weeks out. talk because through what that tells us about the seriousness of the issues facing china's economy? >> well, it shows as it is very serious. otherwise, they would cut as they have done so many times. i would say that it means more than just a cut, maybe a series of cuts, maybe a package of cuts , may be a full-fledged monetary stimulus, what else? i don't know. maybe qe. i am expecting a series of measures. unfortunately the signs we get are not so much qe, but rather the mechanism to intervene in the market. so, you know, it's all about buying stocks. we overheard you had a great

story that it would be state owned enterprises buying. it has its own fund, so maybe nobody wants to think, to take this difficult role of spending the money, if they for example not a floor. as time there was a floor. 3000. so what is the for now? and i think this may be things for which they need time so i would expecting more than just a cut. >> yeah, let us look at some of the market reaction we had, as you said, the 2015 intervention and when they stepped into tried to stabilize. that boxing green is a june to august of 2015 when china did step in, but you can see the market continued to drop. the bottom panel is the ppi, cpi and during that period, the

market wasn't deflation, and that is a similar situation to that box in red on the right-hand side. we are still in deflationary territory. clearly the economy continues to be in the doldrums. what else were you expecting, if you say you are expecting a series of measures? >> so what happened is they started buying stocks. this is what we heard at least overheard because there has been no announcement. but it really only worked in early 2016 during the g-20, helped by china, or hosted by china because a big stimulus was announced. of course not as big as 2008, which shows that the direction is that it is hard to do a big stimulus increase. it was hard in 2016 a and had to

be more limited because the economy is bigger. also it is a very very leveraged our economy so you need more credit. all of this means that it is so much more needed now than 2016. so the problem is that they don't have the space to do that. i think on the monetary side one could argue yes, they do because real rates in china are higher than in the u.s. you mentioned inflation. but of course on the fiscal front, i would argue that 100% of public debt is not a joke for gdp per capita, so it is a lot, and that is the problem, how to execute stimulus at this juncture. paul: definitely a live issue. the china financial sector dead. this is from bloomberg reporting. is there a risk the route in

stocks that effectively becomes the property prices 2.0 -- crisis 2.0? >> that is one possibility but but me give you one more. because of those stocks, imagine you focus on the most vulnerable part which is local government. that is about 30% of gdp. so you start looking for stocks that relate to local governments, whether specific or for that matter even bonds, because they issued, and you start saying this are the real estate prices. they don't have the fiscal muscle to put the funds in those infrastructure projects behind the local government, so as we, as a second go state-type of

crisis, i would say local governments in particular. paul: when we talk about other central banks around the world we use phrases like communication, policy air, that sort of thing. when you look at china policymakers you can give them a market of 10 for clear transparent munication, what mark would you give them? >> i would respond the following way. they are not independent enough for me to give them any mark because they can't do what they may want to do and this is the key problem. paul: all right. thanks so much for joining us. as we stay on china, as we move ahead with the market open, let's bring in bloomberg's executive editor paul dobson in singapore. we saw a reasonable rally for chinese stocks yesterday on the back of some of this news that rrr cuts, other potential

stimulus as well, but is this going to be sustainable? paul: uh, it depends if there is more follow-through. it would be easier to answer that question, i suppose. on the one hand there is momentum in the market at the -- with the support for equities. we have been reporting on this package from the pboc, not least of which was the eminent cut to the rrr rate by a hefty 50 basis points as well. everybody seems to have been whipped into action from these words to support the market, but the thing is while this can give some sort of short-term boost to sentiment in equities, which it certainly has done so far, continuing the what we are hearing from investors and analysts as they want more follow-through in terms of economic support.

what else can help out, particularly the property sector , to resolve the local government debt, to get sentiment among consumers turned around and to start pushing forwards again. so, yes, it may be the equity market can continue to does for a little while -- buzz for a little while but it will run out of gas if there is not that continuing sort of threat of supportive measures from the government. >> it does seem china is resorting to a familiar playbook in terms of saying it wants to continue to back esso ease and improve their value management. will that excite traders at all? paul: well, i would not say this is a completely familiar playbook. we have not seen the pboc hold a

press conference and pre-announce a rrr. that gives you the since there is more urgency this time around. something like a support fund for equities. it is something that has not been tried in a while. certainly using offshore accounts is a decent idea because it can support the currency and gives them more confidence to lower interest rates without losing control of the yuan, so it seems like there is joined up thinking, measures and tricks being pulled out of the hat. it does not sound like same old story. what is important is this idea it is one thing to prop up the market, but another thing to prop up the economy bubbling along at that 5% growth rate people seem to be happy with. maybe they don't feel that there is a need to juice it or and that is the difference between investors helpful for growth and better earnings prospects for

companies and authorities having to see both going steady while they manage all of these debt issues in the property sector and in the local government sector and get through the kind of hump. paul: all right. paul dubs and their -- dobson in singapore. some stocks moving in australia. first off, the iron ore fortescue metals with the second order iron ore shipments higher quarter on quarter, but falling 2% on quarter from a year earlier, fortescue sang demand remain strong for iron ore. shares rising 2% at the moment. we heard from santos with its quarterly production numbers, maintaining 2024 outlook between 84 and 90 million barrels of oil equivalent and production 23 .4 million barrels equivalent was slightly higher in the third quarter coming into the fourth. shares rising slightly.

materials doing well on the broader asx with the market her by .25%. bloomberg users can interact using gtv to browse recent charts featured on bloomberg tv. you can also catch up on key analysis and save those charts for future reference. this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh

annabelle: you are watching daybreak asia. taking a look at sk hynix. it is recovering some losses but it has been whipsawed trading for the memory china. we saw it reporting a surprise fourth quarter profit far outpacing what analysts had been expecting and a lot of demand for its high-bandwidth memory chips they used to go into nvidia accelerators used to train ai tools. they are still seen demand for that. other names and suppliers moving to the upside so far, but perhaps that is after what we got from the dutch chip equipment maker asml, saying it is seeing positive signs and sales growth after orders more than tripled last quarter. the ceo told us more about the

outlook for china as washington pushes for export bans to hobble beijing's tech ambitions. >> 90% of our business in china is mature technologies that we need for the major transitions, energy transition, ev transition, digitalization, rollout of the smart grid, you know life sciences. it is all mature technology. >> so what is your message to those in washington, lawmakers in washington and the hague pushing to expand those restrictions beyond the most cutting edge machines to expenses restrictions on the sale of the fogger fee to china? >> i have full respect for national security concerns, but we need to take into consideration this chip industry has an ecosystem across the globe that has given us massive

advantagesn so from an economic point of view we have to make the economic system that has given us so much benefit is kept intact. it's not nationaln security but ensuring that innovation can keep going. >> your stepping down in april, does your successor have to wargame the possibility, the scenario where asml has to operate in a global market ex china? >> i don't know whether he is wargaming. we will have to deal with the reality, but i am an optimist who worries a lot. i believe we have created a macro economic that is so dependent on each other that i think is a scenario you can almost put into a game, but i don't think that is realistic. >> you do not have generative ai without asml your extreme ultraviolet lithography

machines. how much demand are your clients seeing for chipmaking equipment to generate those ai chips? >> the full extent of what ai can bring is not totally clear because it is about the implications, and that needs to develop, but one thing is for sure is it will need massive amounts of compute power and data storage, so without asml and our technology, it will not happen, so it is clear it is going to be a big driver for our business and our customers. paul: asml's ceo speaking to tom mackenzie. coverage continues on daybreak asia. stay with us for more. this is bloomberg. ♪

that first time you take a step back. i made that. with your very own online store. i sold that. and you can manage it all in one place. i built this. and it was easy, with a partner that puts you first. godaddy.

>> tidelands deputy finance minister amplifying rate cut calls. he told us exclusively that high interest rates are holding back the economic recovery. >> the problem with thailand is the economic, economy growth of gdp, it is not where it should be. the past 10 years, the growth rate of thailand is about 2% only, which we believe with the

capability of the thai people and thai economy and the current government, we plan to stimulate it and bring it up to 5% per year at least. > the current central bank policy rate is 2.5%. does the government think the economic conditions are in place for 2.5% to be lowered? does that look too high given the reality on the ground? >> the current interest rate is quite concerning to the government. it is too high considering the spending power that the thai people has at the moment. it is difficult for the people of thailand to live with this number, 2.5 interest rate. >> the digital handouts, the timing on when that becomes public or was it takes effect? >> well, yes.

>> give us an update on when you think that might happen. >> the initial planning was in may but now we said it has to be postponed. >> is it definitely going to pass though? >> it is in place. the proposed project should still be within this year. >> within this year, ok. the rift going on between the government and the bank of thailand, what is going on? >> the government and the bank of thailand is structured and thailand may be differently from some countries. >> ok. >> because the bank of thailand has to be independent from the government, from anyone, you know has to be fully independent. the bank of thailand mentioned about some issue, for example the digital wallet project. they are concerned the success of the project, the source of funds, which we listen. >> ok.

>> we listen to that, but we are concerned that right now the bank is a bit too distant from the people. after we announced the digital wallet project, there are so many polls in the country. lastly, there is a poll from one of the top commentators in thailand. he asked if people think that the injection of money, the problem about the situation of the economy, is real and thailand. 93% said right now the economy is in bad shape. >> ok. >> so the government thinks and believes that it is imperative that we need to inject money into the system so people can have better living, have a better life. >> the targets on tourism, that is very big.

what happens when tourism plays a big part on whether you achieve your growth target? 8 million is the target for maiming chinese tourist into thailand. >> the goal for this year, the number of tourists coming to thailand is 30 million people. chinese people accounted for 20%. >> ok. >> we believe we can reach that number. after we announced the free visa policy last year. >> right. yeah. >> beginning of this year, the number of chinese tourists has doubled party, so we believe we can reach that number even though 8 million is not too difficult. annabelle: that was the deputy finance minister for thailand speaking with david ingles at the asian financial forum. that event is still underway in hong kong with leaders and

government officials, finance and business people from the region gathering together. let's cross to david who is at the event. what is on the agenda today? david: yeah, well, suffice to say, and good morning from here. lots of good conversations coming out. i would love to tell you things are already buzzing here on the ground. you can see behind me that i would be lying if i did say that. it is early and it will be starting in a few minutes from now. the main stage is to my left. we will have good conversation and hosting the show over the next three hours. as you can see on your screen, 30 minutes from now, and this is more pressing, the head of investment banking at cicc will be here to talk about what the deals look like given the softness that persists in this greater chinese economy. that conversation is coming up,

including broader themes like ai , cryptocurrency, web three. back to you guys. paul: all right. david ingle is there at the asian financial forum taking place in hong kong. we just want to get to another interesting story. asia's 20 richest families, some hong kong families not doing well, sliding down the rankings but moving up the rankings, it is quite instructive on the shift of wealth in the asia-pacific at the moment. the family from india on top, three generations worth $102 billion. he has his fingers in so many industries. second on the list, the family from indonesia that started out as a cigarette company, before the sons diversified to banking, bank central asia worth $44 billion, worth the bulk of the family fortune come about hong kong not doing quite so well. annabelle: yeah, it really tells

you how much the concentration of wealth and power is shifting away now from china and hong kong to india instead. and actually in those rankings we saw four out of five dynasties ranked among the richest asian families whose fortunes eroded over the past year. so that significant change we are seeing around the region moving to india and out of the region here. we are seeing that playing out in the likes of that family behind you, development growing their fortune from a single jewelry shop, but succession plan still in play. that is it from daybreak asia. more ahead. ♪

(♪♪) we're lucky to have this team working for us. our therapists give their all each day, by helping those who need it most. we take great pride not just in the job our team does, but in them as people. our people. and while we're in the business of taking care of others... it's important our therapists know that with benefits from principal, they're taken care of too. (♪♪)