little changed on the asx. measure the reserve bank of australia likes to watch. 6.9% on the year. also a little bit hotter than expected. plenty here for the reserve bank of australia to ponder ahead of its next meeting, as inflation is proving to be just as sticky as the weather outside in sydney. let's get more from our chief rates correspondent for asia, garfield reynolds. what does this mean for the reserve bank ahead of its first meeting in 13 days time? >> the initial market reaction is telling you this takes off the table any potential the rba would pause or pull a rabbit out of its hotter and go 15 basis points at the february meeting -- hat and go 15 basis points at the february meeting. this was a strong expectation even going into this inflation data. it does not probably have a huge impact on whether terminal rate is seen going. the expectation is they would do two 25 basis points from here and pause -- hikes from here and pause. this lines up with that. the figure did come in underneath the rba's

a dominant theme when it comes to the asx.ng mining stocks soaring to record highs. about .8%. hong kong mortgage applications for mainland chinese buyers rose to a record high in the fourth quarter. let's get to our correspondent for details. take us through this data. what is it really telling us? >> we know the property markets on the mainland have suffered its longest downturn in history since the property market was privatized in the 1990's. that is not surprising. mortgage rates in hong kong, despite rising are still low. the data showing increased interest in hong kong. that is an important demand for the market. prices have been falling and it is a core part of the economy. it is showing that interest from us the border is picking up, could really put a floor on the market when needed. obviously, the defective central bank has to follow the fed when it comes to rising interest rates. there was concern this could destabilize the property industry. if we do get that pickup from across the border, that is a good offset. >

the asx 200 has performed up more than 6% so far. we are looking at the best start of the year since 1994 if it holds. a level of optimism coming through in the markets. we do have signals that the u.s. -china trade relationship is improving. president xi jinping says is a -- eight is heading in the right direction. the rise in energy has been a big contributor to inflation. the core rating projected to expand 4.2% in the latest reading. we are also watching new zealand. optimism coming through in the chinese session. hong kong back online. >> a lot of excitement. u.s. type mega-caps have empowered a new rebound. -- u.s. tech mega-caps have powered a rebound. so many different things in move in stocks today. a bullish sentiment today. >> it was definitely a choppy trading session in the u.s.. we have the economic data coming out going data seem like throughout the day traders trying to parse through what this means for the path forward for the fed. when you see these economic data releases and they are pointing to a stronger economy,

. >> in terms of what we are watching now, we have the open of the asx 200 in australia. at the start of trade, we are seeing it snapping a four-day rally. that is not surprising given the wall street session. more details, and a moment. the headline you need to know, to fed officials say the terminal rate -- two fed officials say the terminal rate could top 5%. that will be crushing optimism because there was the expectation building in markets that it could actually reach 5% which was lower than what had been projected in the dots blood. equities will be moving lower throughout the session and australia. bonds are looking more range bound, a smaller move for yields. let's take a look across the region, we are seeing kiwi stocks today trading slightly more positively, japanese futures also pointing to a flat start today but chinese futures are want to watch because we have actually seen the optimism around china reopening and chinese stocks leading the emerging market index into bull market territory. the question is whether that buying a starting to look a little overdo

we are watching the asx 200. up about 1/10 of 1%. this is following already four sessions of gains. we will watch the australia confidence and conditions survey coming up later in a couple hours this morning. we do have esa futures -- u.s. futures unchanged at the moment after we saw gains with the s&p 500 finishing around 4000. a reminder of the markets that are closed, china, hong kong, singapore, south korea, malaysia, taiwan and vietnam. this is bloomberg. ♪ ♪ this is my kitchen table and also my filing system. over much of the past three decades, i have been an investor. the highest calling of mankind i've always thought as private equity. and then i started interviewing. >> i watched your interview first so i know how to do interviews. >> i learned about how leaders make it to the top. >> i said fine, i did not negotiate with him and did no due diligence. >> and how they stay there. >> you don't feel inadequate now because being the second wealthiest man in the world, is that right? [laughter] >> 40 years ago, a young college graduate mike werth joined chevron. then and now on

asx 200 up by just about 1%. longest winning streak since november. u.s.l extend the rally. u.s. equities had their best day in more than a month on friday. quite a bit of expectation or optimism. perhaps unexpected contraction on a services activity. the slow down in wage growth could persuade the fed to temp up of the weighed -- the progression going forward. watching strength when it comes to risk currencies like the aussie dollar continuing to stay resilient. it is it for daybreak: asia. our markets coverage continues with the start of trading in hong kong, shanghai and shenzhen. ♪ >>

the asx in positive territory. the unemployment rate, 3.5%. a very slight miss.numbers for the rba to consider its meeting which happens in three weeks. we will have cpi numbers for australia next week as well. shery: staying with the jobs theme, amazon and microsoft laying off tens of thousands of workers. massive staff reductions that are now officially underway, as part of a wider wave of job cuts hitting the tech industry, as it slashes costs amid an economic slowdown. su keenan joins us with the latest. microsoft already notifying some of these workers. su: it is already underway. both microsoft and amazon sharing the view that the cuts are painful, but necessary in this economic environment. we understand that notifications are going out immediately to many microsoft workers. others will be notified in the coming months. again, about 10,000 workers are going to lose their jobs. it will take a 1.2 billion charge in the second fiscal quarter, related to this move which will fax -- affect less than 5% of the workforce and cuts 12% -- $.12 off the cost per shar

the asx is modestly higher. we have a staggered open here in australia so a lot of stocks are left to come online. three year is coming back after steep decline on tuesday. retail sales were a bigamist. -- a big miss. there's a lot for the rba to consider as the mortgage cliff rolls over. the aussie dollar is hovering around $.70. in new zealand, we see reasonable gains. nikkei futures pointing to a slightly softer open. vonnie: the federal reserve may be ready to downshift the size of its rate increases but that doesn't mean it's ready to take its foot off the gas pedal. kathleen hays is here. officials have been signaling a 25 basis point hike but we need to know what's going to happen in march and beyond. >> they signaled many of them like chris waller in washington, the vice chair and others have said we are making progress on inflation it's ok to slow down and may be look ahead to a pause. it will be jay powell's job at the press conference to fine-tune that however he asked to do it. yes we are getting clo

that's a big boost for the asx 200.till gaining a little but of ground, this ahead of the be ok rate decision. on friday and kiwi stocks continuing their move higher. the asian financial forum is underway in hong kong bringing together investors and global financial and business leaders. that's crossover to the event. yvonne is standing by with our next guest. yvonne: i'm pleased to be here. joining us is the president at the asian infrastructure investment bank. they are close to celebrating their seventh anniversary. as of january, proving a little more than 200 projects racking up more than $40 billion or so. they get so much for joining us. obviously there's a lot of optimism around china's reopening. there's been a push for infrastructure, investment domestically. i'm wondering globally, is there now a mandate to lend and provide much it's -- budget support globally. >> thank you very much. to attend the meeting yesterday i made a speech about what this bank has been doing over the last seven years. in three years

we have the s&p, the asx 200 in australia and the yen 13041. i am paul allen. this is bloomberg. ♪ francine: in 1971, wire and plastic products, plc, made shopping baskets. in 2022, wpp, as it is now known, is the biggest advertising firm on the planet. sometime between then and now, specifically in 1989, mark read walked through the doors and played a starring role in that transformation. in 2018, read became chief executive of a firm in crisis. the man who had made the giant, martin sorrell, had stepped down. today, we speak to mark read about a new age of advertising and how to run a business fit for the 21st century. mark, thank you so much for joining us on "leaders with lacqua". what does it mean being an ads man, ad leader in 2022? mark: [laughs] well, i mean, our industry is at such an interesting phase, isn't it? we've just been through the pandemic, we have come out i think in many ways, ever more relevant. but we have faced a whole period of continued innovation with new advertising formats, new digital companies being launched, e-commerce taking off

annabelle: at the opening of the asx 200 we are seeing a drop for the second straight session. what is driving that from the wall street session is this outlook for corporate earnings and also the prospects of further fed tightening ahead. as a barometer of risk appetite we are also keeping an eye on the asean this morning. that is still moving fractionally high, so investors into term of the rallies we have seen over the first couple weeks of the year. something that can really change the direction of this currency here today is, of course, the bank of japan. we could see big shifts in either direction on the dollar-yen. we are keeping an eye on what is happening overnight implied volatility, because that has spiked to its highest since 2008, back in the financial crisis. big moves out of that seminal decision later today. very much alive meeting coming to a close, and kathleen will go through the details in a moment. also in terms of what we are watching in terms of asian trade, in new zealand we are continuing to see the impact of really what has been a global front runner i

seeing the deflation, to the pessimism surrounding the asx.ll come to the manila market looking at the main constituents after the delayed open. let's check in with the latest business flash headlines. microsoft swinging losses in the late session after seeing revenue growth in the cloud computing business, by -- decelerating by four percentage points. azure has been making the biggest driver in growth with a jump in sales last quarter. microsoft warning of a slowdown in consumer sales for the rest of the fiscal year. texas instruments suffering its first quarterly sales decline since 2020. the chief executive says the results reflect weaker demand in all markets with an exception of automotive's. the chipmaker giving a temperance forecast with a wide range -- tepid forecast with a wide range, saying it is uncertain how the industry will remain after a slowdown. after the 2023 forecast mr. the and out -- missed the analyst estimates, the industrial bellwether announcing plans to cut to an have thousand manufacturing jobs. the chief executive t

annabelle: we have the open of the asx 200 and at the start of the day, we are trading flat. futures had been indicating for a drop but tech stocks are definitely going to be one of them, given the moves we had. we did see tech stocks leading the gains in the prior day. the other key metric we are watching are the moves you can see -- bond yields ticking slightly higher. it does reflect the changing sentiment deciding to come through into markets because traders had been ignoring this fed mandate to keep rates higher for longer and brushing that off. we do see inflation does appear to be staying sticky. inflation surprising to the upside with spanish numbers overnight, so that is telling us the mandate to keep bringing down cpi could mean higher rates for longer. in terms of how that sets up for the trading day, it has been the best month so far in nearly three decades. the question is whether these gains will hold. but a rather auspicious 8.8% gain so far in january. if we do see a downside, we are looking at the best start to the year in more than a decade, so it does refle

annabelle: we have the opening of the asx 200 in a few moments. futures have been indicating a fourth day of gains. the big lead in coming into the session today is what came through in u.s. data, specifically the latest university of michigan survey which showed x -- showed inflation expectation moderating. some positive trading momentum coming into a new set of the week. also, china another factor for us given we had china's top economic planner saying it will be watching the price of iron or very closely. australian minors in focus. speaking of china, the pboc is one of the central banks in asia that could make waves in markets this week because we have the one year nlf decision on monday. the expectation is no changes with one of the few exceptions from bloomberg intelligence, saying prepare for a cut to the key rate to try and spur the economy. the boj in japan on wednesday, their decision is live, it is a wildcard for us and that is down to not so much the key right, most economists saying that will be unchanged, but when it comes to its pro

looking at the gains we are seeing currently for the asx 200. we have some of these markets which are also not trading in the frame. also looking at tech companies, japan on its lunch break, but there declines were decisively lower after the gains we saw in the session yesterday, reflecting upward pressure on the country's currency after the boj left those policy settings unchanged. do not forget traders are again looking once again at the 10 year japanese government bond yield in the cross yields that crosshairs right now. it was the fourth day we had seen the yield on that 10 year above the ceiling the boj had put in place of 0.5%. when they did nothing in terms of monetary policy, yields at 15 basis points. the sharp drop coming through. it was at 0.41% last i checked. in terms of the yields, we have 0.42 percent. taking a battering at times over the past 24 hours and if you look at what is happening, the bloomberg dollar index pretty much unchanged. the opening at bangkok, following to the upside -- downside, but it is very much in focus, th

australia asx down .3%. we're keeping a watch on china revising some of the gains. up 50% since the lows we saw back in affect space, the dollar inching against -- fx space, the dollar inching against -- the one extending its gains by .5%. a level at the highest and about six months. in the bond market we are seeing a mixed picture. yields trending lower for new zealand, malaysia and the philippines. 10 year treasury yields at 3.52%. td securities says it is a reflection of two much optimism about the pivot by the fed, by this year. and may be too much pessimism when it comes to the recession. cpi data from the u.s. out on thursday. rishaad: in that vein, we have been looking at the fed officials including president mary daly, continuing to really beat the drum for raising the fed's key interest rate for 5% and holding at their. -- there. >> starting point is the sep, putting in between 2.5% and 5.5%. we are going to need to go in and imagine is the data rolls in, do we need to go higher or stop earlier? something above 5% is absolutely in my judgment is going to be

. >> we have the open of the asx 200 and at the start of the day, we are unchanged so futures had been indicating we would snap a four day rally for the benchmark index. wall street was shot overnight for a public holiday so no significant need in there. rio tinto is one of them. this is the world's top iron ore producer and a key producer of commodities that put out its latest production report and it sees higher than expected copper output over the coming 12 months and very good timing on that as well given goldman sachs just released its findings this year, saying commodities will outperform any other asset class over the coming 12 months. let's take a look at other centers we are watching today including what is happening in new zealand. we are seeing the new zealand stocks trading fractionally higher even though we did have a private reading out of business confidence for the country, dropping to its lowest level since this ninth -- the 1970's. the rbnz has been a front runner in the tightening cycle but on the topic of central banks, the boj in japan is the one to watch this week

in australia, we have the asx looking a little bit weaker but still, you take a look at those on thethat is the biggest gain, up more than 3.2%. we are all about this reopen and china. >> chinese markets will resume trading in 90 minutes after the lunar new year holiday. let's bring in william warner. you are not all ambitious here. you're only looking at a 30% return for the year. could some of that come from china? >> of course. we have seen a lot of strength in china. we are quiet cautious with china. we have seen so much rallying in the past few months. tech stocks in china have rallied 100%. we are pretty cautious over there. we are very positive with china reopening. i think it should cost -- because more ballast to come in from the supply side. the reopening and china is definitely positive. >> are you at all concerned that the reopening might at some point because a little extra inflation? >> yes, a lot of people have been speculating that when china reopens, we would see extra inflation coming in from the demand side. also on the energy side. we have seen slower economic gro

asx 200 seeing 1% loss as well, futures and the u.s. slightly higher.ar with a negative note. more to come. this is bloomberg. ♪ these days, our households depend on the internet more and more. families grow, houses get smarter, and our demands on the internet increase. that's why we just boosted speeds for over 20 million xfinity customers, on us. so you get more of the speed you need for day and night streaming. more speed you need when you're work from homeing. and more speed you need as your family keeps growing. check in on your current speed through the xfinity app or upgrade to the speed that's right for you today. yvonne: the south korean government is implementing a steep increase in electricity races year after the state run utility faces a record loss from record fuel costs. what we talking about in terms of the increase in rates? why they be forced to do so? guest: south korea has increased the price by 9.5% for the first quarter. the biggest quarterly jump in company data going back to 1982. the rates come from the state run utility. facing

the asx 200 is shut. the aussie dollar online. new zealand is flat. japan futures also flat. we did have relatively positive leading from wall street. we could see moves to the upside. kathleen will get through those details in a moment. the other factor that has been absent from asian trading over the past few days is what is happening in china, given the new year at holiday is underway. we will have hong kong coming back online. mainland china still shut. this chart takes a look at how the hang seng performs one month after the lunar new year holiday. three consecutive years of declines. this could be the year that we do see some upside, given we did not have that positive session on friday leading into the close. and a lot of optimism around the reopening trade in china. looks like there could be more room to go, especially with revenge consumption on the rise. kathleen: revenge consumption, that sounds like fun. we will be back with an about. let me catch you up on the latest on the u.s. stock market. we will look at the futures reading. tesla helping boost -- helping to