margin pressures are expected for smic. it is currently dropping more than 7%. down 8.5%. its price target has been cut. markets still need to reflect the eps change. it is a market where it is broadly higher at this point. gains driven by the weaker dollar as well as the fall in yields. china trying to gain traction up by 0.5% right now. plenty more ahead. t yvonne: chinese markets heading to lunch facing a little bit of indigestion in terms of this rally we saw, day two losing steam as we speak. take a look how the csi 300 has played out here. we are up 0.5%. look at the greater china hong kong stocks in particular. hstech went to negative territory a few minutes ago. some signs investors are taking profits, may be getting closer to the lunar new year holiday. h-shares are down following what we are seeing with hstech. hang seng gains of 0.4%. there are signs of momentum stalling and investors waiting for any clarity of, are we going to get any sort of support measures coming through with this meeting with president xi with regulators? there is hope. hope is a

smic casein operating income slump of 80% because of sluggish demand in the soft -- of the smartphonend hard for -- and hardware market. the u.s. added more companies to the list of phones they can see helping the chinese monetary. this is an election year. we may see this back-and-forth between china and the u.s. on the macro side. for smic we need to pay attention to the macro expenditures. >> also the tech numbers from other regions. japan is a standout. >> we can see the earnings estimate of the softbank groups. the investment fund, vision fund, we may see the list of company propulsion break even this quarter. for nintendo, we are expecting the weaker yen to support the sales despite the intensified competition with the ps5. overall, i would say for the regional outlook, we may need to wait until later this month or next month for companies like tencent. >> breaking news editor felix setting up what is a busy week of earnings ahead. be sure to tune in to bloomberg radio. you can get more from the big newsmakers and get in-depth analysis from our daybreak team broadcasting from ou

but tech in china is taking a big hit, part of that down to the chipmaker smic. plenty more coming up. this is bloomberg. ♪ tom: welcome back to bloomberg daybreak: europe. happy wednesday. after european stocks edged and hit another 12 month high yesterday, looking to build on that today. a lot of that was down to the relatively positive earnings story. if you strip out the concerns about ubs or the downside that came from that stock yesterday. ftse 100 futures pointing to gains of 1/10 of 1%. s&p futures are currently flat. nasdaq futures also in flat territory. fed officials reinforcing this view that cuts are going to come through later than these markets had expected. we know that traders have been fading out expectations of a cut in march. let's have a look cross asset as we think about how this commentary has played into the treasury market. u.s. 10 year, not a lot of movement. 4.09 on the benchmark 10 year. euro-dollar at 107. strength coming through for the single currency. the yen interesting given what we are seeing and hearing from pimco. they are con

smic up 0.3%. look at nvidia go. edging higher, extending gains by nine points.ensen wong spoke on an earnings call earlier on the chipmaker outlook. take a listen. >> we guide one quarter at a time. but fundamentally, the conditions are excellent for continued growth. calendar 2024 to calendar 2025 and beyond. let me tell you why. we are at the beginning of two industrywide transitions. haslinda: let's get analysis with robert lee in hong kong. he talked about how it is looking excellent. how will the current demand supply dynamics drive nvidia and the likely change over the next one to two years? robert: great question. we are all sort of running out of superlatives to describe their performance, aren't we? investors are celebrating another set of stellar results. the outlook for the company, the demand outlook for the company and the industry is unquestionable. this is a multiyear, multi-decade story. no concerns on that front. the main risk and question mark that is out there is on the supply side. there has been a supply bottleneck or a supply-side bottlenec

in terms of earnings this week, alibaba, smic are the big ones we're watching against the backdrop ofs surroundings. and gmm, take a look at this >> in china we have had nine consecutive months of zero to slightly negative deflation print. probably another deflationary print this week. we're still calling for a cut. >> with fixed income, bond yield is pretty low already. if our bet is ultimately government will have to stimulate more, then i don't see bond yields have much more bounce left. yes, i think stockmarket will be more interesting to watch but for now it's too early to jump in. rishaad: some of our guests on bloomberg expressing their views on what's going on with china markets as they had offer their lunch break in a couple seconds. big change on the csi 300, erasing a 2.1% loss, we are off the gain line by a fraction. the shanghai comp down about 1.8%. looking at the shenzhen market, 4.7% to the downside. the small-cap index is the real headline. the csi 1000 is down, the csi who thousand plunging nearly 10%. it is set for the biggest intraday drop since its inception in 20