shery: busy days ahead for you.ou can get a roundup of all of the stories that you need to know to get your day going in today's issue of daybreak terminal subscribers go to dayb . this is bloomberg. ♪ shery: we are counting down to the start of trade in tokyo. in japan, monic screw -- monix group has hired a new leader. we are also watching softbank planning to focus its investments in latin america on startups already in its portfolio. the strategy is aimed at helping to fund mergers and acquisitions during slump evaluations. haidi: mexico's president has announced that tesla will build a new plant. he says that elon musk has given environmental assurances including the use of recycled water. he says elon musk was responsive, understanding of mexico's concerns, and accepting of its proposals. a supplier of apple products says rising geopolitical tensions could push them out of china faster than anticipated. the chairman says they are investing in a new plant in vietnam and considering expansion in india. he sa

shery: the top stories. the yen slides on news that the boj governor may have been tapped to become the central banks next chief. haidi: beijing threatens retaliation as the u.s. blasted a chinese high-tech balloon out of the sky. shery: the terminal surrounding adani's empire enters its third week. this was the close on wall street on the friday session. on a weekly basis we ended higher. we are talking about the highest levels since august. it was not nervous about where the fed will go from here especially as they may have to stay with rates higher longer. that is what hit market sentiment. we are talking about employers hiring more than 500,000 people. we are talking about the unemployment rate falling to the lowest level since may 1969 which took treasury yields for a ride. we continue to see pressure on oil prices. around 73 u.s. dollars a barrel. and we are watching the eu ban when it comes to imports, we are hearing more caution coming from the saudi energy minister as well. haidi: and we are watchin

shery: look at how u.s.ures are trading, we see the downside after those after hours from big tech continuing to be pressured. earnings are a bit mixed. u.s. futures down, nasdaq 100 futures leading declines. we have the nasdaq 100 on the cusp of bull market territory from its december low. we are watching dow jones futures down .2 of 1% after we saw the market rallied for three consecutive sessions. we continue to watch the treasury space as well when cash trading starts in about half an hour. treasuries rallying and extending the global bond rally with that 10 year yield pushing down to below the 3.4% level and the dollar rising against every g10 peer except the japanese yen. the japanese yen saw a bit of strength for the third session this week. haidi: talk about the global bond rally, the rally and treasuries extending into the early part of the australian and new zealand session as well. this is what we are watching when it comes to trading in australia, equity softer about point one of 1%. you can see

shery: i'm shery on. the top stories this hour -- the world top finance chiefs failed to agree on a statement over russia's war in ukraine. we will hear from the imf managing director and treasurer at the g20 meeting. haidi: fed officials tray -- flag to high inflation is a key report comes in higher than expected as some investors are clinging to a second-half stock market rally. shery: recession risk rising in australia as the rba is seen hiking more than the fed. annabelle: we have the start of a new trading week upon us in asia and we are looking decidedly risk off as we head into the day's trading. two factors driving cap -- we did not have that preferred inflation reading coming through the core pce numbers. off that, we are seeing futures for us trillion setting up for a weaker start and new zealand in the red already as the session gets underway. other factors we are focusing on in the days trading, we will be watching what happens in china throughout the week, giving a sense of anticipation tilti

shery: what happens if inflation in the u.s.me down as expected if we get a stickier core pce on top of very strong jobs numbers we have. how does that affect picture for the rest of asia? >> i think is the trillion dollar question for equity investors. particularly on the inflation front. we now have a competing narrative between wall street investors. the fed is focused. chairman powell has reiterated that in the recent speech. the confounding data we are getting is very strong labor data we are seeing from the u.s.. friday's data was out of anyone's expectations and that has led to concerns we have a decline in inflation on a wide basis. but we are going to get core pce's. the fed has indicated they want to push this back to levels they are comfortable with. as you can see from forecasts they are expecting this to persist for a much longer time basically through the end of 2024. that leaves the final conundrum we have where investors believe the fed has done too much in conditions have into restricted and we go into a recessi

shery: with a weaker u.s.re you more positive, emerging markets, especially asia, especially taking into account your expecting a slowdown in the u.s. and the growth that differentials that could benefit the asian economies? simon: absolutely. ken: the expectation for the fed and u.s. interest rates generally is likely to continue this u.s. dollar bear market. in asia, china is recovering. the reopening that happened recently. japan, hong kong, taiwan, these markets are still recovering as well. parts of southeast asia also seeing the second half of a reopening trade. that momentum is there and it is fairly strong. it will keep some of the central banks in asia more hawkish than the fed. you talked about the rba. the bank of japan is very much in the center of attention. by the end of this year, the people's bank of china will probably turn more hawkish as well. that combination of factors is going to keep asian currencies very firm. haidi: is it a straightforward recovery when it comes to chinese assets? loos

shery: i love that. let's turn to the value growth geeking this again because we have been talking about this fate forever. are we seeing a rebalancing toward growth because rebalancing seems to be stalling. garfield: both sides are stalling and there's often an animus toward growth stocks, that seems to be the natural setting for the equities market over the last 20 years or so. where value outperformed, the hopes would be that's the end of the pain trade then we can get back to normal business. which of those two outperforms in the coming months could say a lot about where we are going and whether or not the current regime ends up being transitory. do we get high inflation, lower equities performance, lower bond performance regime which would be the fear if it takes the fed longer to get the inflation under control than many have expected. if we do see growth outperform sustainably, that might be happy days are here again and might mean the u.s. dollar is going to lose momentum once more and that is so

shery: shery: china says this was a balloon for scientific research. how consequential is it?rybody knows every country spies on each other. is this just posturing from both sides, knowing that, ok, we are doing the same to you probably, but you just need to do this in order to save face to your own constituents? and when you are trying to move on, what will actually need to that? what could be that circuit breaker in this great relationship? drew: so there is a lot there to on -- to unpack. first to consider is that the u.s. does not fly sovereign aircraft into chinese airspace. it does not conduct surveillance missions inside of china by military aircraft. the new criminal defense and the administration have flatly denied this is a weather balloon permit they don't hover over nuclear sites. this was an intelligence collection effort on china's part in the administration has called them out on that. even the original foreign ministry statement that was issued said it was mainly meteorological in nature. that is the fundamental difference. the u.s. does not do this china, it d

shery: let's stay with china. urging state owned enterprises to phase out the four biggest accounting firms, signaling concerns about data security. let's bring in our greater china -- window this is coming amid heightened tensions. what is beijing telling the state owned enterprises? >> understand china has been asking firms to replace the big four with local firms. haidi: they just reached the landmark last year after decades , it saved hundreds of chinese phones from being kicked off american exchanges. does that have an implication for those companies? it was successful. beijing was worried about data security and financials. on the other hand, another layers between the u.s. and china. shery: what are the implications from companies being potentially delisted? >> at depends. companies must comply, they should be safe. >> some of these companies are applying to voluntarily delist. >> it does not mean they are free from inspection. the agency could do the inspection to make sure they were compliant during the l

shery: rebecca choong wilkins, thank you.ies you need to go to get your day going on today's edition of daybreak. bloomberg subscribers, go to dayb on your terminals. it is also available in the bloomberg anywhere app. you can customize your settings so you only get the news on the industries and assets that matter to you. this is bloomberg. ♪ haidi: a quick check of the latest business flash headlines. an australian biotech giant says its profit fell due to currency fluctuations. however, the company said it saw strong growth in immunoglobulin sales and plasma collection. it saw a strong performance also when it comes to its flu vaccine unit. it expects strong growth in plasma collections to continue this year. this company is set to make an offer for english premier league football club manchester united. qatar's sovereign wealth fund is helping the consortium with preparations for a bid. shares of fidelity national information services tumbled after it hooked on almost 17 point $6 billion -- after it booked an almost

shery: rishi sunak speaking there.ea is preparing a domestic rocket program to carve out a larger slice of the global space economy. the science minister spoke to bloomberg about those plans in an exclusive interview. >> the space industry is growing at an explosive pace. from an industrial perspective, we cannot ignore it. it is also important for national security as the competition for shared space is heating up among nations. shery: sam, given south korea's competitiveness in the global tech industry, can we assume that that will also translate to the space industry? sam: very likely. you are right, korea has become a major player in the global technology world. it has a lot of capabilities that it would be able to market when the space drive among nations heats up further. it is a country woven deeply with the global economy. which means it has to survive and thrive based on trade. in the future trade may be centered around a lot of the space programs being developed by countries. rocket parts, satellites, communi

shery: a little more on north korea.aring comments from a north korean official through the state media. saying that pyongyang says u.s. force movement is becoming more active and north korea will respond accordingly if u.s. movements pose concerns. we know the u.s. condemned the icbm launch by north korea and has held aerial drills with south korea and japan in a show of force this weekend. north korean officials say it is up to the u.s. how often the pacific is used as a shooting range so we are getting fishel comments coming from north korean officials. let's turn to india. we are seeing signs investors in indian stocks are moving beyond adani groups concerns. fairly bullish now again? reporter: that's right. when you look at what and local managers are seen, they expect a key benchmark, the sensex, to reach a all-time high. we are actually heading back into that direction again. this is down to strong domestic demand expected to boost corporate earnings. the overseas funds are starting to come back into the equity ma

shery: let's turn to banking.ing an end to job cuts and an eventual bounceback of the business after reporting profit that exceeded expectations. for more, let's bring in our guest russell ward. guest: the results are quite mixed despite the profit. we had one of the segments investment management reporting profit growth. probably not surprised that dealmaking was quite sluggish given the slowdown globally. nomura saw a big drop in revenue or a slight drop in revenue i should say in fixed income which is a surprise given the strength in that area and volatility in global blonde markets -- bond markets. the cfo did strike an optimistic tone. he said the deal's pipeline is picking up. he also said the bank is probably going to that if it from volatility in bond trading. as you mentioned earlier, regarding job cuts he said that the bank is done with those which is surprising given the pessimistic tone we had on wall street this earnings season with banks across the board signaling aggressive cost cuts. quite an optim

shery: good evening, at the top stories this hour. a wave of aerial incursions as a further object to shut down over north america. china reportedly ready to take on a craft flying over its waters. haidi: the potential for the surprise choice of the next boj governor ac the yen climbing and stocks falling as investors and scurried to find out more about the economist. shery: sources say the identity company may cut its growth target and cut off capital expenditure as it seeks to rebuild investor confidence. annabelle: we are at the outset of another trading week in asia, and there is a big litmus test in the days ahead for the fed's ability to tame inflation, cpi print due tuesday. it will set the stage for what we see for fed rate hikes in the months ahead and other central banks around the world also grappling with more sustained high inflation. in terms of outlook for stocks in this part of the world, looking fairly mixed ahead of the open. japan future is pointing slightly higher. at the one area that could outperform is what we s

shery: india's minister.erg radio to hear more from the days big newsmakers. get in-depth analysis from the daybreak team broadcasting live from our studio in hong kong. plenty more ahead. stay with us. haidi: a quick check of business flash headlines. -- still reported a surprised loss of $260 million. the result came as steel prices dropped her its demand in europe. it's outlook is expected to improve as china removes covid asked -- covid restrictions at exports from india resumes. i downy transmissions third quarter profits jumped 70% helped by a one-time gain following -- the power utility reported net income of 58 million dollars, potentially giving some relief to investors. adani transmissions says revenues rose while costs increased. bed, bath & beyond is making a last-ditch effort to avoid bankruptcy by turning to the public markets for new cash. the retailer plans to raise more than $1 billion from convertible preferred securities. the plants to use proceeds from the sale to repay debts and make over

shery: great to have you with us.oming up next, a bloomberg scoop on how deutsche bank looked at credit suisse. this is bloomberg. ♪ bloomberg has learned that deutsche bank has looked at buying parts of credit suisse before last year. >> the source is also saying that if some of these assets that credit suisse has come up on the market that could change. sources are telling us the german bank was looking at specific credit suisse assets that might have been sold as early as last fall then in the fall in october credit suisse announced a dramatic restructuring. that was in the wake of losses and scandals. we are told that deutsche bank had done a serious analysis of individual business asset management and wealth management units. they say these are to areas within deutsche bank that deutsche bank is planning on growing. the plan also we are told inside deutsche bank was to move quickly if attractive parts of the bank credit suisse were to come on the market last year. if you will recall the revamp, credit suisse init

shery: that's really interesting.associate wage hikes with ceos being happy about that. is that because this could be a way out of the deflationary mindset spiral that japan has been in for the last couple of decades? guest: yes, definitely. there is a hope that this could lead to a virtual cycle where rising wages would boost domestic consumption. of course it is still too early to come to any conclusion on that. according to analysts at j.p. morgan, if japanese companies can manage to pass on up to 80% of rising costs to customers including wage hikes, then the damage to profits would be mitigated. that would mean there could be another cycle of rising wages and inflation. some think that is a quite narrow path. japanese companies have passed on rising costs that much in the past. we just have to see. shery: when we talk about japan, i hear analysts being positive about the governance picture that things are getting much bigger -- better in terms of corporate governance, transparency, esg. that what you are seeing?

shery: quite a shift. we thought australia was perhaps relayed this attached -- detached from global supply chain disruption and now we are seeing u.s. resilience stronger than expected. pce data, surprising to the upside. u.s. consumer sentiment rising to the highest level in the year or so. so, right now, u.s. futures coming online pretty muted. not a lot of change now in the asian session. when it came to the new york session we had the s&p 500 seeing its worst week in 2023. tech is leading the deadline. the nasdaq 100 lost about 2% or so. rising yields. repricing of where the fed will go from here. we had more hawkish fed speak this week whether it was loretta mester, jim bullard, susan coleman. the pce numbers, the dollar surging to the highest in a year or so. all of this reflected across markets. oil prices now, a little gain in the asian session. it has been muted training for oil as well. range bound around $10 the entire year coming at a time when the rebound in demand coming from china has not r

shery: this is daybreak: asia.e are counting down to asia's major market opens and potential reaction to the surprise pick to head the bank of japan. and we could see a lot of volatility already from the u.s. cpi numbers coming out tuesday. the expectation is for the headline to ease but core cpi remain sticky. haidi: this on top of heightened political jitters. we 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 o

shery: that's the thing., people were asking, was china involved in this? reporter: of course, the backdrop is there are rising tensions between china and the u.s. and u.s. allies also. the biden administration announced last year they would restrict china's ability to get advanced chips and chipmaking ability because they were concerned they would use that technology in military applications and aia and other things that could threaten global security. the medalists in japan and south korea have been working against this. we still don't have all the details at this point. haidi: you can get that story on the top stories tonight by going to today's edition of daybreak. go on their eternal -- on the terminal and also.available on the mobile you can customize the studies as well so you get industries and assets you care about. this is bloomberg. ♪ haidi: taking a look across crypto assets and focusing on bitcoin. we saw bitcoin rising to the highest level since august. we are seeing bitcoin trading up by 2.6% a

shery: what is happening in australia?o much focus on parliamentary grilling's the governor is facing. our field: australia faces elevated inflation if you look at australia had a long record keeping inflation under control. to extent that was the central bank is a matter for academics. the rba, there is a prevalence of mortgages and strong approved australian households in the economy are extremely sensitive to moves in the central bank rate. we have had three or more percentage rate hikes in less than a year. that is causing a big decline in house prices. vonnie quinn u.s. and china try to figure out a way past the balloon dispute. antony blinken is considering a meeting with china's top diplomat. u.s. treasury secretary janet yellen has renewed her warning that congress must raise the federal government's debt ceiling to avoid a financial catastrophe. republicans affect to hold off on lifting the ceiling until democrats cut future spending. treasury chief told officials in washington that many of the residents would los

shery: the u.k.as $36 billion for short-term giveaways in a next month's budget. borrowing over the fiscal year that's began last april is running well below the official forecast. the treasury received $6.6 billion more revenue than it spent in january alone thanks to income tax revenue and lower debt service in costs. a winter storm is sweeping across the northern u.s. with bitter cold set to stretch from the coast to the midwest. in california storm warnings extend to the mexico border. the worst hit will be the city of minneapolis where up to 23 inches of snow may fall by thursday. those were your first word headlines. haidi: let's look at treasuries as we get into the open. future is holding tech line's and at the early part of asia training. -- holding the lines at the early part of asia training. we are also seeing bonds across the rest of the region dropping as well, he reebonz dropping, -- kiwi bonds dropping. we are seeing the potential for key benchmark treasury yields to hit highs for the

these problems are not surprising, since richard sheri f, a retired british army general and retiredo's supreme commander in europe. >> at the end of the day, if you want to fight, protect yourself, your country, protect ground and sees ground that, you need tanks, armored infantry, armor artillery and the like, and that has been a lack of investment in that, as there has been incomplete and frankly a scandalous lack of investment in the sinews of war, ammunition, sustainability. reporter: nato has already doubled its forces on the eastern flank. in addition to four already existing battle groups in the baltic states and in poland, the alliance has established four more in southeastern europe. their plan is to strengthen air and missile defense systems, and to further beef up the number of troops there. >> i think we should be talking about divisions, not brigades. it is really significant numbers. end of -- a band of steel along the eastern flank of nickel to demonstrate to russia that nato is prepared to defend itself. reporter: so far, allies have remained united in their commitme

a latest proposal to construct a police facility, sheri speaks the lands painful history. the site was a prison farm until 1995 prisoners there were subjected to harsh punishments and slave conditions, including poor sanitation, you tricia, and over crowding. some critics say claims of unmarked grades have not yet been properly investigated. before that, the land is thought to have been a plantation that enslaved at least 19 people. it was originally stolen from the muskogee who lived there until the u. s. government forcefully displaced them to oklahoma. to day, both activists and tribal members have reclaimed the indigenous name as will lonnie peoples park. a fascinating history for this fuselage. anna, i'm curious, is the muskogee nation. are they involved in what's going on there now? and anyway? yeah, so i mean, as you can see, this piece of land has a really, you know, painful past. and local advocates and community members have told me that there has been basically no effort, no genuine effort on the city's behalf to try to make amends or try to even study this past

she is often to as sheri fink pine, that was her husband's last name.but i remember hearing an oral history with her. she said she was so mad. people called her sheri pine because she didn't use fink pine. she used. so i immediately changed all my notes because she preferred chesson. she was the host, a public access tv show called the romper room and. it was she was a teacher in tv show and there were little first grade kindergarten kids and they did the pledge of allegiance. they little games. and in the tv shows, just like their teacher. now, in 1962, she sought a abortion in a hospital because she had taken thalidomide. her husband was a pilot and found thalidomide when he was in europe. sorry, he wasn't a pilot. he was in the military. and then when he was in europe, he had gotten his hold a hold of thalidomide and he gave it to his wife. at some point, her pregnancy. and so she was concerned she was aware of what was going on. she was concerned that her child would be deformed. so scheduled this abortion. but she was also concerned about women if

she is often to as sheri fink pine, that was her husband's last name.but i remember hearing an oral history with her. she said she was so mad. people called her sheri pine because she didn't use fink pine. she used. so i immediately changed all my notes because she preferred chesson. she was the host, a public access tv show called the romper room and. it was she was a teacher in tv show and there were little first grade kindergarten kids and they did the pledge of allegiance. they little games. and in the tv shows, just like their teacher. now, in 1962, she sought a abortion in a hospital because she had taken thalidomide. her husband was a pilot and found thalidomide when he was in europe. sorry, he wasn't a pilot. he was in the military. and then when he was in europe, he had gotten his hold a hold of thalidomide and he gave it to his wife. at some point, her pregnancy. and so she was concerned she was aware of what was going on. she was concerned that her child would be deformed. so scheduled this abortion. but she was also concerned about women if

. ♪ shery: you're watching daybreak: asia.

shery: welcome to daybreak: asia. >> a mixed picture after a volatile wall street session.

sheri is the c.e.o. of muttville senior dog rescue. worked with loyal for some of their studies. she says if successful, her work could revolutionize the way people adopt animals and get thousands more dogs rescued. shelters would have a bert understanding of a dog's age, and overall health. >> we can save more animals if we can give them clear -- gi gie adopters clear information. that would be an ultimate game changer for us. tim: they hope this is the first step in the journey. one goal will always remain the same. making her products affordable to everyone. >> these aren't going to be rich people drugs. something that's broadly accessible that i hope one day almost every dog is on. reggie: we never get a long enough time with our dogs. if you are going to expand my dog's life, i'm for you. as long as they are happy. mostly healthy. you get towards the end, and you are really doing everything to -- in your power to extend that life. frances: at some point it might not be good for either of you. reggie: there does have to be a time.

shery after three years of what looked like a ban. why do you think that is happening?i think there are a lot of factors. i think the party congress that renominated president xi was causing a lot of concern that if -- conservative judgments and people not making decisions and have appointed a new round of government officials who are more open. the primary thing is the focus on the economy in china. the economy as you know really bottomed out. late in 2022. the government just wants to get it going again. for example, movie complexes are anchors to a lot of mixed shopping malls, the government wants people to go out in -- go out again and get the economy growing again. rishaad: that is the imax ceo speaking on bloomberg's daybreak: asia. the businesses have lost $108 billion over allegations of fraud and stock manipulation level by the short seller, hindenburg research. the billionaire is prepaying creditors through loans. some stock is used as collateral. jp morgan on -- said some adani bonds, made dollar bond payments as scheduled on thursday. the bank of a googling