haidi: yes. we get into a week that brings us what is seen to be the last hike of the cycle for the rba. what's of expectations. bloomberg economics expecting a smaller than expected hike of 15 basis points. also expecting more than 25 basis points, outliers. we are down in fx futures after arise for a fourth straight session. probably muted start. the aussie dollar under the $.78 level. we had the burst of u.s. dollar strength out of the job surprise, the fear of higher rates after unemployment, the rate fell to a 53 year low on friday data. also the resurgence of consumer demand as well. watching japan keenly in the days of trading session. we had heard officials in the ruling coalition had talks with someone being approach for the next governor. we saw a slide in the end, but the 1% slide at the sydney open was also not just in response of that report but on the back of some dollar strength as well. shery: talking about dollar strength, the most since september. we continue to see geopolitical

haidi: just love that phrase. kathleen hayes, let's get to vonnie quinn with the first word headlines. vonnie: china were in science holdings says it's chairman is assisting chinese authorities in an unspecified investigation. it is the first public information about the banker's whereabouts since he disappeared more than a week ago. the abrupt disappearance has unnerved business elites and fanta speculation that the nations finance industry is set to face increased scrutiny. embark has been told that u.s. will hold talks on the globe i glad -- global semi conductor supply chain. the videoconference of the chip group discussed an early warning system to ensure a steady supply. we are told the parties held off on discussions of export controls and no companies were involved in the meeting. the australian treasurer says he plans to deliver a responsible budget to avoid soaking in inflation. back in october, it opted to pull most of its windfall into the budget rather than funding spending programs. >> we cannot be c

haidi: rebecca with the latest. of china's most influential scientific body outlined plans on how to get around u.s. chip sanctions. an article argues that beijing should build up or julio of patents that governor next-generation chipmaking. we will discuss this with peter. this gives us kind of an insight into how beijing is looking at ways to counter strike. >> that's right. with rising tensions between the u.s. and china, the u.s. has put in place very severe restrictions on china's ability to buy chips and chipmaking equipment, in particular a cap on their ability to buy equipment that would allow them to produce chips at 14 nanometers or 16 nanometers, which is not that advanced at this point. what the academics at the cas are talking about is leave rugged the existing generation of technology and going to a new generation of technology where they can invest in advanced materials and chipmaking processes, to get beyond these restrictions the u.s. has imposed and by a massive portfolio of patents to be able to n

haidi: stay with us. coverage of the state of the union address from 9:30 a.m.. coming up next, our next guest thinks it is not clear that india is out of the woods when it comes to nation. we are previewing the decision and will this be the last hike of the cycle? this is bloomberg. ♪ ualiis vital to your mental, emotional, and physical health. 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. three nights. esg... -diversification, futures, options... leverage. -excess cash flow. gold. the world is full of financial noise. you are right on track to hit your goals. our easy to use investing app and local advisors can help you stay on track. j.p. morgan wealth management. haidi: india's central bank is poised -- let's bring in the asia econ

haidi: the u.k.ister rishi sunak says allies need to finalize security pledges for ukraine by the nato summit in july. speaking to us at the munich security conference, he called on countries to equip ukraine with the means to win the war right now. >> it is clear that the security guarantees, the architecture that was in place for the war has failed ukraine. that is a statement of fact. ukraine had received assurances when he gave weapons up. russia has continually violated human rights treaties or arms-control treaties. what happened before has not worked. now our job is to look forward and say what is the right thing going forward. as i mentioned, jens stoltenberg has said ukraine will be a member of nato between now and then, what we need to work on our providing ukraine with the means to win the war right now and that means very specifically artillery, long-range weapons, armored vehicles. air defense, that is the most critical thing. we can also make sure we are training ukraine on nato standar

haidi: australia has just come online. the end slides on news of a deputy governor who may have been tapped to be the central banks next chief. beijing's retaliation after the u.s. a blas a high-tech chinese balloon out of the sky. china calls it overreaction. and turmoil over adani enters a third week. shery: u.s. futures, seeing downside pressure. we had a week of gains for the s&p 500, we are talking around the highest level since august. the friday session was pretty volatile and we entered the day down. we are watching that very hot labor market numbers, players adding more than 500,000 jobs. unappointed rate falling to the lowest level since may of 1969. investors are thinking where does the fed go from here? potentially it could be higher rates for longer. we had the treasury yields jumping with the two year yield gaining about 18 basis points. we also had downside pressure for oil prices. the dollar also jumping the most since september. we continue to see the downside pressure in oil. a little more caution with th

haidi: the u.s.s the chinese balloon shot down last weekend was capable of collecting communication signals and was part of a worldwide intelligence-gathering effort. john, what was this report that was presented to lawmakers, and what did we discover about this chinese balloon that has captivated the attention of the world? john: what we discovered is that u.s. officials are saying that this balloon had the ability to collect electronic communications as it was flying through the air, and also to geo-identify them, to know where those communications are coming from. in addition to that, we are hearing about the u.s. have identified a chinese company that was providing manufacturing berlin's for the chinese military and that there are likely sanctions coming. also that there were some components of the balloon that had english writing on them so potentially were produced by a western company, so again, probably some limitations coming on those components if there were any eventually discovered. this,

haidi: another snag in the drama.k chinese commodities including their crackdown on lithium minds. goldman sachs looking to gain as well. this is bloomberg. ♪ ♪ old school wisdom, with a passion for what's possible. that's what you get from the morgan stanley client experience. you get listening more than talking, and a personalized plan built on insights and innovative technology. you get grit, vision, and the creativity to guide you through a changing world. ♪ we all have a purpose in life - a “why.” no matter your purpose, at pnc private bank we will work with you every step of the way to help you achieve it. so let us focus on the how. - [announcer] imagine having fuller, thicker, just tell us - what's your why? more voluminous hair instantly. all it takes is just one session at hairclub. introducing xtrands. xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. they're personalized to match your own natural hair color and texture, so they'll blend right in for a natural, effor

haidi: thank you for joining us. much more here on bloomberg. ♪ shery: president biden is speaking saying the u.s. has recovered major pieces of the u.s. so-called china spy balloon. plenty more vonnie: this is daybreak asia. the adani group plans to prepay a bridge loan due in march after some banks refused to refinance the debt. sources say that lenders were in talks on the loan up to one week before the hindenburg report triggered a massive selloff. the imf is asking pakistan for a solid relief plan to revive stalled loan program. the energy minister told local media discussions have been detailed and vigorous and should conclude successfully within days. imf wants pakistan's government to strengthen its fiscal position. north korea appears to have staged its first military parade in almost a year. local media reported jets flying over pyongyang and music coming from a city square. it may be a platform for kim jong-un to show off his latest weapons. state media usually broadcast images of such parades after they h

haidi: kathleen hays.adani taking steps to restore confidence. 100 $20 billion of market cap has been erased following a u.s. short seller report a managing editor -- report. we are seeing an assortment of measures to prop up investor confidence. broader market sentiment. a bit of relief for investors. what are we seeing and is it having the intended effect? >> yeah. the most recent move is the adani group buying back share back loans, freeing up stock in some of those more infrastructure focused units. adani transmission. adani ports. that is firmly seen as a firefighting, restoring confidence move and a way to ward off margin calls, which they are very concerned about. this comes after a bunch of banks, credit suisse among them, started to stop accepting adani securities as collateral. very much pro--- very much trying to sell things. market moves are coming down. in the absence of a first of element on this story, but we are not out of the woods. shery: especially we -- given we have many companies repo

haidi. haidi: taking a look at some of the tech movers in the asian session. that is right, we did see the nasdaq and philadelphia semiconductor index dropping the lowest level since january after we had to beneficial sling the case possibly for higher rate hikes in the months ahead, the cleveland fed president and the st. louis fed president, they say possibly 50 basis points could be possible. with high inflation numbers in the latest ppi numbers in the u.s.. these of the tax= -- tech and medic cap's -- megacap's. and other sectors the military stocks, given that we have seen china imposing fines and sanctions against to u.s. defense companies, lockheed martin and a subsidiary of raytheon technologies. in terms of the investor reaction we are seeing a little bit lower at the start of trade. we should note that what bloomberg intelligence says about this. essentially these measures are not expected to disrupt operations given that the subsidiary targeting is the missile defense sector does not have much at all going into china. still we are looking like a ris

haidi:evering ties between washington and beijing. chinese state media publishing a 4000 word article blasting u.s. foreign policy. yvonne: bhp/his dividends as rising costs and softer commodity prices drive decline in profit. haidi: we are getting breaking data crossing the bloomberg right now. the australia composite manufacturing and services numbers breaking. a bit of an improvement when it comes to the composite preliminary number for february ticking up to 49.2% from 48.5%. on the manufacturing side, we are still in just barely expansionary territory at 50.1 percent. a martial -- marginal improvement. something of an improvement when it comes to the last reading. we are starting to see a little more they take as the economy reopens and we also have the return of chinese travelers and visitors to australia. that is going to help used services indicators. this look at how all of this is fading and -- feeding into the start of trading. and it comes to the u.s. session, we got president's

haidi: the latest business flash headlines.ett urged shareholders to keep faith in the u.s. economy after percheron for white reported weaker results in some key businesses. operating earnings fell 14% fourth-quarter as high prices hit railroad and insurance units. buffett says he has yet to see a time when it is right to make a long-term bet against america. asml and the u.s. government are said to be investigating potential links before -- between a former authority -- employee accused of data theft and the chinese government. the suspect was identified as having potential ties to a chinese state-sponsored entity. the u.s. is pressuring the dutch company and others to not sell advanced chipmaking technology to china. hsbc looking for a new global headquarters less than 50% the size of its current space in london's canary wharf considering an office of between 400,005 -- 400,000-500,000 square feet. its current lease ends in 2027 area toyota laid off more workers -- twitter laid off more workers over the weekend curb cost. it

haidi: part of it is u.s.na geopolitical tensions, but the other part is homegrown domestic industrial policy priority shift. is that a sense that increasingly you are seeing more sectors that affect more and more remember ship that perhaps they don't feel welcome more they're going to be affected by more isolationist policies? guest: what we hear from our chinese customers is they want to buy american products. they want to continue to work with u.s. service firms that is protectionism at home. there are number of sectors we have never been in. others we are being squeezed out of. getting equal access has been a challenge that our companies have raised. shery: we heard today apple suppliers were racing to exit china. are you seeing more of those concerns? from american businesses? guest: it's a good example. 75% of our company say they are not leaving china but there's another almost 25% who say they are starting to look at other locations. sometimes it's because during the lockdown supply chain constraints m

haidi: garfield reynolds here in sydney. let's get over to vonnie quinn with the first word headlines. vonnie: thank you and good morning. china's top diplomats says beijing and the european union should prepare for a meeting of their leaders. he urged his e.u. counterpart to help bring bilateral exchanges back to pre-pandemic levels as soon as possible. at a meeting on the sidelines of the munich security conference the officials discussed ukraine with him saying china is promoting talks for a political solution. microsoft has agreed to give kyiv free access to its computing platform. microsoft, apple and amazon had a presence at the conference over the weekend to the bind administration says tech belongs and any conversation about security. monitors in a ran has detected uranium enriched levels just below that needed for a nuclear weapon. is the second time this month they have detected suspicious activity. the iaea will report to board of governors as appropriate. the cost of cycle and gabrielle which devastated parts of

haidi: are you looking for exposure to ai?ary: we are looking at exposure to ai and microsoft that i mentioned before and chat gpt is the phrase of the day. there is exuberance and i just got back from san francisco last weekend. some of the feedback i heard is that chat gpt is probably overhyped for what it is but it's under hype for what it could be and what generative ai could be in the longer term so we are doing a lot of work on ai and we have a sustainable fund and very strong esg criteria for all of our investments. we are doing a lot of work on what that means in the context of ai because it's a very unexplored space and it is something where people are going to have to come to conclusions pretty quickly because it's moving quickly. shery: can you find any of those tech bets, high quality, supported by emerging markets world? mary: yes. right now, our tech exposure from early in the u.s., so in tact, we own companies which, despite what is going on overall, has done very well because of this exposure. we own companies

haidi: you are pointing at leveraging.r, we've been talking about household debt being high and korea. now it seems like it's a private sector. what's going on here? kathleen:: during covid, not only hostile debt accumulated but also the corporate sector business debt growth has been accelerating. especially that size in services, manufacturing, and even more recently the construction sector has been accumulating that. we've seen that growth going 15% year-over-year and the third quarter last year. it is likely to have even more accelerated by the first quarter of this year. the bok wants that growth to slow down. that's likely to keep the bok on hold higher for longer until the end of the year. what do you -- haidi: what do you say when it comes to more potential weakness for the currency? kathleen: it's been a surprise that the fed has been more hawkish. our u.s. team has raise their terminal rate expectation for the fed for 5.5 now. that should signal that there could be a short-term strengthening of the dollar and kore

haidi: what about amazon? look at cloud, whether you look at the computer -- consumer, it was pretty grim. ed: it was weird. amazon's fourth-quarter sales were up above expectations. it showed there was some staying power for the e-commerce side. we didn't see a pretty sharp slowdown coming in aws. we have gone from a position of 40% topline growth a year ago, down to 20%. that is a pretty sharp deceleration. the outlook, the commentary from executives was that slowdown will continue for a number of orders. why do we care what aws accounts? it is the cash cow that allows the giant that is amazon to operate the way that it does. the financial impact from the layoffs, they announced 18,000 jobs would be cut, that manifests itself as a $640 million charge. there could be some more costs going forward. a drop in the ev maker also showing up in the balance sheet. shery: you had a conversation with ruth, what did she say? ed: the results overall show the core search business of google is not immune to what we have s

haidi: our chief china markets correspondent. china, china is warning it will retaliate against u.s. violations of its sovereignty, potentially escalating a dispute over the alleged spy balloon. also, some airline stocks like china southern, nearly 70% of seats reopening. travel burn continues. passenger traffic for january up more than 62%. we are watching fourth-quarter earnings top consensus. more to come here on "bloomberg daybreak asia." this is bloomberg. ♪ haidi: airbnb shares surged the most since 2021 after the sales outlook beat analyst estimates. ryan sheskey says they are expecting more growth from short term stays and new ways of traveling. >> we are expecting pretty steady growth. we are expecting a little more accelerated growth in short-term stays, but that is more of a recovery. we are seeing more people go to cities and more people cross-border spirit urban and cross-border was around 80% before the pandemic so it is a matter of the recovery of the old ways of traveling and a real sustainability of new ways incl

haidi: we have. book that has been selling for multiple times its original price, even to the extent of trying to interview his father to try to get a gauge on what kind of policymaking -- policymaker he's going to be. we did get a gauge on the inflation going into the start of trading today, and of course, that key parliament rehearing really highlighting the strength of price hikes before we get, of course, the first major public appearance from the boj nominee since he was picked by the government. really highlighting just one of the aspects of the challenges when it comes to what he will be taking on if confirmed. ahead of that, we have seen quite a bit up young volatility. let's get to the markets. >> that's right. that is what we are seeing in terms of market reaction so far. that's fight does tell us investors are expecting moves in either direction, but still so much unsaid as far as exactly what kind of leader ueda will be. because of that, we are looking at range bound in other asset classe

haidi: annabelle in hong kong.t still ahead, global fast food chain brands reporting profit exceeded estimates. the ceo will be joining us to break down those earnings and give us their take when it comes to china's reopening. this is bloomberg. ♪ ♪ shery: we had a hot cpi print and markets reacted to uncertainty. our next guest finds a bright spot in emerging markets amid this. let's discuss with benjamin kirby, cohead of investments and portfolio manager at -- investment management. good to have you with us. we have bullish calls from the fact that investors refocused on the super court cpi, which we are talking about. core services minus housing. what are you watching? tell us your reaction to the numbers. >> thank you for having me on the show. i don't think a whole lot change. we had additional in munition for the hawks. inflation is falling but not as quickly as we hoped. i think the overall narrative is well intact. inflation is falling. the fed is nearing a terminal rate. shery: you like emerging markets be

haidi: keeping us on the toes -- your toes. let's get more on how the markets are digesting all of this. let's bring in garfield reynolds. how do you gauge this? >> markets definitely, there are knee-jerk response was that this would be a hawkish decision. the yen appreciated, japanese government bond futures dropped on friday afternoon when the news first came out that it was likely going to be ueda. those comments kathleen flagged are a lot more nuanced. it smacks of wanting to be very careful, which is understandable. the bank of japan's assets are larger than japan's economy, so it has potential to cause a lot of problems. if you had somebody from the existing bank of japan makeup like others considered, presumably it would have been difficult for them to jettison the legacy but also difficult to argue that, for example, if the current policies remain appropriate, the favorite word of bureaucrats, then you need to keep them, so i think the government and bank of japan are looking for flexibility and credibility, which is no

haidi: thank you, malcolm.he opportunities emerging from china's tourism rebound in southeast asia, this is bloomberg. ♪ shery: with china easing is covid measures, tourism has made a strong comeback. trip.com chinese language platform says the mastic and outbound travel bookings in china reached a three year high with overall travel bookings up by over 600% on the year. the managing director and vice president is with us. good to have you with us. where are you seeing the most strength when it comes to travel demand across china? boon san chai:. we are actually seeing and over the chinese new year period. mainly several countries in southeast asia, including singapore and thailand are the main destinations. forex growth, and also for bookings, more than 30 times increasing bookings year on year. it has gone above 70%. very high demand and also very exciting news for us. shery: does that mean that this trend can continue? or how long will this last? boon san chai: i think the chinese demand is just starting to

haidi: this on top of heightened political jitters.e have four of these incursions into north america airspace. the pentagon expected to brief with further details of the latest incident this hour but we continue to watch for the implications on the relationship between beijing and washington. shery: and what that means for supply chain disruptions -- what could this mean for the global economy and we could be getting an indication from singapore. we are getting gdp numbers from 2022, extension of 3.6% which is below the estimate of 3.8%. their fourth quarter gdp has been revised downward for growth of .1% quarter on quarter. the estimate was for .3%, so a little disappointing, but showing the resilience of growth for 2022. we are talking about the expansion of 3.6% and this as we continue to look ahead to more slowing down of the global economy. manufacturing is shrinking and perhaps that could signal this trait-reliant economy and could see some pressures had. let's turn to belle on how we are setting up for the session. annabelle: w

>> good morning, haidi.ecting the rbnz to raise interest rates by 50 basis points, to 4.75%. now, that is a -- that would be a moderation from its 75 basis point rate hike in november. but it's still going to bring the new zealand interest rates to the highest level among the developed world. now, that much might have been priced in, but the key point here is the outlook and the central bank's forward guidance. financial markets are expecting the new zealand interest rates to peak around 5.25%, up 50 basis points from the level, assuming we have 50 basis point rate hike today. in november, rbnz said that it expects the terminal rate to be around 5.5%, above what markets are expecting. given the recent talk that the fed might go higher and longer, investors should be quite nervous about the possibility that the rbnz might also be much more hawkish than markets expect . >> how have kiwi stocks done during the rbnz cycle of rate hikes? this could be the tenth already. how resilient have they been? why such resi

i am haidi stroud-watts.their stocks [indiscernible] so in this uptrend margin of this condition will result in erosion. they are also thinking about repaying loans. the payments due for adani transmission and another have been made, so there making progress. they had a meeting about what to communicate to the larger investor community. we are expecting some clarification today which will cool off, allay the fears of the investing community. rishaad: now, what happens next? we have seen how his value, his wealth has come down -- gone down, but what are likely to be the background discussions right now? >> that is an interesting question. yesterday, if you saw the bank they came out and said their exposure to adani is less than 1%. [indiscernible] one public sector lenders said their exposure to adani is half what the rules allow, so the banks are telling that there is no systemic risk as far as banking threatening this concern comes of those things will cool off. we are expecting a detailed confirmation, or r

haidi lun beating estimates. this move up also for u.s. futures. happens with rates that is concentrating on the mind of investors. david: it is a moving target. and how it has moved the jobs report which was released three weeks ago, we will visualize for you right now. markets have vetted two 25 point basis rate hikes. when you look at what is happening in markets you understand why we are coming under tremendous pressure particularly around long-duration assets. 5.5%. the hang seng is telling a different story. friday was a bad day for hong kong stocks. maybe some buying not taking place. we are backed up of ever so slightly the 20,000 level. getting some buying coming through. think this is the subplot across the markets. mainland investors had been net buyers of hong kong stocks. big move on friday. this was the most they bought net-net since china said they were going to stabilize the markets. continuing to see that as far as the net inflows are concerned. we will see if this holds. it is also about the fed and what they are prepared to do gi