cathay pacific jumping 2.7%. sjm holdings also moving higher. hang seng as i said moving a little higher. picking up off the lows of the day, rather. we are still seeing weakness in the china session, in particular this morning. also let's look at broadly how the reopening trend has been performing over the year. take a look at our custom-made reopening basket. you can see it is still down on the year. still faring a little better than the hang seng and h-shares as well viewed -- as well. haslinda: as you said, the hsi hasn't moved much. you get the sense investors will only be excited if the quarantine is removed totally. annabelle: that was the big call we had and we have big business in november as well. a lot of banking ceos and teams saying that would be the precondition for traveling here, zero quarantine. that is still a push for the city, it's what a lot of business groups have been calling for, but as we've seen, hong kong has decided to err toward a more cautious approach. there was some concern that the quarantine cut would be five da

cathay pacific still remains one of the purest reopening plays. like many of its peers, whether they are chinese or u.s., cathay does not have a domestic market, and it still remains home to the world's largest air cargo airport. so yes, it has done well, but we still expect room to go. our target reflects that, which i am not wrong, is the highest on the street. rishaad: we are going to go to space in a second, but hold onto that thought. as we go to the kennedy space center, the falcon nine launch delivering 52 satellites into low-earth orbit from this complex in florida. the launch expected in about, ooh, minute -- one minute and 10 seconds. actually was lost before -- launched before. we get stage separation and that will land back to earth on a drone ship. we have this delayed launch because of unfavorable upper level winds. 70% chance it was before this was happening that we get lift off, and indeed we are getting lift off. aiming to deliver broadband relay station to an orbit ranging between 144 miles and 208 miles at an how to to do of 232

let's have a look at cathay pacific, shares rising in hong kong after it trimmed its first-half loss. a loss of about $5 billion is down from a deficit of almost 8 billion hong kong dollars this time last year thanks to a surge in revenue from its cargo department. and an easing of quarantine rules and caps on flight, ca thay only took around 2% in the beginning of this month. they are expected to get to 25% by the second half. that has analysts suggesting you can see positive eps. hsbc are expecting a return to profit in the second half and have a buy on cathay pacific, one of eight analysts with a by on the stock which is rising in today's session. dani: we saw optimism from europe, too. different earnings stories there. juliette saly in singapore. coming up, we will be speaking with ing bank senior rates strategist antoine bouvet on the markets. ahead of that u.s. cpi printed a. how negative might that yield curve go? this is bloomberg. ♪ >> look at inflation expectations. >> consumer inflation expectations are dropping. >> inflation expectations and breakeven inflation rates comin

we have those cathay pacific earnings in the session on wednesday. of a light at the end of the tunnel. it's regularly on the cargo side of things as well. yvonne: certainly one of the more outperforming airline stocks out there globally as well has been cafe. -- cathay. they have been crunching the numbers in online searchesthingy 300% on the day after the government announced that cut to hotel quarantine for travelers. let's get more from the head of asian consultancy. there is a lot of optimism now that we have seen those hotel quarantine times shortened. how quickly do you think the travel industry can really recover. >> if we look at the cathay pacific performance, there is a loss narrowing. mainly due to the lower capacity compared to pre-pandemic. that pushes the yield quit a lot and then traffic improved on a monthly basis. it is still way behind. and with the local quarantine measures, we believe the business might be better. this is only 20% of the pre-pandemic level. the policy certainly helped to ease the consent for those people who do w

airline cathay pacific is urging the government to remove the restriction entirely. joe biden says he is confident china will not further escalate tensions with taiwan after a series of military drills in the region. maintaining pressure today after nancy pelosi's visit to the island. taiwan says no more ships or planes have entered into territory. south korea's education minister has offered to resign after backlash to reduce the school entry age by one year to five years old. the president is likely to accept the resignation after deciding to remove her from the panel. widespread cost-cutting after a record $23.4 billion loss, the tokyo bank company lost the money in a provisions of fund. following results, everything will be reduced for cost and they will sell to investment management. >> we have to control ourselves although we feel the urge to invest in a market that is tanked. we will not lose big. >> global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. shery:

cathay pacific urging the government to restrict -- remove restrictions. the hong kong advisory level has been lowered from three -- 23 from four. the u.s. giving billions in aid to ukraine. according to the pentagon the package includes long-range artillery ammunition and medical vehicles. it would bring the total u.s. assistance to ukraine to almost $10 billion. 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'm vonnie quinn. this is bloomberg. haidi: still ahead, australia's efforts to fight climate change. the moving away from reliance on mining. coming up, alliancebernstein's brad gibson will talk about his investment strategy and the latest news in the bond market area -- market. this is bloomberg. ♪ >> if our outlook for deflation is correct, cyclical and secular. secular deflation so did -- associated with technique logical -- technological inflation, that is good inflation. if those two are correct, that would be the best environment. >> cathie wood there

limited within some airlines are diverting to japan or philippine airspace and we are here in cathay pacific has instructed their pals to take 30 minutes of extra fuel on their flights. that will be around the taiwan area. >> what is up next on nancy pelosi's agenda? i would imagine this is quite challenging for u.s. allies in the region. >> she is in south korea. north korea is that big elephant in the room there. i think a lot of this discussion in south korea since the south korean president's office says pelosi will not necessarily or it is unlikely she will meet with president yoon. maybe the discussions in south korea will be more unhappy -- on economic issues and chips. we talked with the tmc domicile there about the chip and science act and luring some of these chipmakers to come to the united states but one caveat of that bill is that anyone who takes funding including tsmc or samsung, they also have to promise not to expand their advanced chip manufacturing in mainland china. i think they will be some courting of samsung and just explain what this new chip still over five years mea

there is a clamoring from cathay pacific and the american chamber of commerce that zero should be the sooner than later. >> it is just not sustainable for businesses to keep on subsidizing quarantine costs to conduct business in the region. and so in terms of opening up, the zero quarantine rule will enhance the tourist travel. we cannot attract people to come to hong kong we remain closed at a quarantine regime is still in place. david: with all of that considered and heard, joining us here on set, regina ip, hong kong executive council. so i guess that is my question. three is good. why not zero? regina: three is based on scientific analysis of the data that we can screen out 50% of the infected arriving passengers at the airports. and up to 80% after two days. so maybe out of 1000 persons, eight infected persons would slip into the community. the ratio is actually lower than local infection ratios. so taking into account the costs of longer quarantine, three is the right approach at the moment based on scientific data. stephen: so how has this discussion gone? john lee has taken ov

that is ahead of cathay pacific later today.the asian transport reporter, danny lee. what kind of drivers will shape the first have earnings? >> we will be looking at cargo to see how much cargo revenue they have brought in and compare to the total revenue. this is all about kathy operated through the pandemic and surviving the pandemic. costs are key to them to try to contain costs as beverly rises again. we are looking at a substantial loss. that loss will be smaller than this time last year. >> will they have much to say when it comes to what they want for the travel quarantine? >> kathy has said it wants a clear roadmap from the government. it was a clear pathway for the government to have preflight testing. very quickly, we will be looking at how much kathy may be able to add with quarantine. >> if you had to give us some kind of grade, where does it stand in the covid recovery compared to its peers? >> it is somewhere behind its peers. they recently reported third-quarter profit in fact. just looking beyond expectations, y

there has been limited impact on air traffic. 18 international routes have been affected, but cathay pacific airlines, instructing pilots to take an additional 30 minutes of fuel on board to avoid any potential areas of military exercises. i mentioned as well, the political fallout. we are hearing the white house is none too pleased with nancy pelosi going ahead with this trip. probably had to scramble to come together with a communications plan and at the same time, distance itself from pelosi's, some would call, political grandstanding trip to taiwan. we are also hearing the white house is also lobbying behind the scenes against this bipartisan u.s. bill being discussed that could potentially elevate or change the designation, alter how the u.s. views taiwan by giving additional money and military support. that would anger beijing. shery: stephen engle hong kong. our chief asia correspondent. opec disappoints, announcing one of the smallest supply hikes in history. despite the blood medic efforts from president biden to help cool u.s. prices. the details next. this is bloomberg. ♪ >> we ar