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00:00Good morning, welcome to DAYBREAK Australia. I'm Heidi Stroud. What's in Sydney? We're counting down to Asia's major markets. Good evening from Bloomberg, a world headquarters in New York and Vonnie Quinn. The top stories this hour. U.S. stocks and 10 year treasuries fall ahead of the Fed's rate decision and big tech earnings. The Nasdaq 100 is suffering its biggest drop in a month. The battered administration is set to consider cutting far away from all its U.S. suppliers, ramping up a crackdown on Chinese tech. And Indian billionaire Gautam Adani wins, backing from a company controlled by a member of Abu Dhabi's royal family as his conglomerate battles a short seller. Let's get a quick check on Wall Street now. You heard it a few moments ago. Everything down today, bonds and stocks. As you can see, the S & P 500 ended the session down one point three percent. Ford was down, but also major tech companies from metal to alphabet all lower by between 2 and 3 percent. The Nasdaq 100 down two point one percent, reflecting that, of course, the fizzle in China overnight as well. It didn't help momentum going into the session. We also had bonds lower with the 10 year yield rising 4 basis points, as you can see now at three point five 3 6 percent and oil practically off. But we had CTA is getting involved and according to Bloomberg reporting, they are now putting on short positions. So this may not be the end of it for oil down two and a quarter percent below 78 dollars a barrel today. We did have some strength for the dollar. Of course, all of the central bank decisions coming later in the week and it is month end as well Heidi. Just one more recession in the month. Yeah. That caution is turning in the wave of optimism that we saw going into the start of trading and of course not helped by the fact that Chinese equities failed to reach that bull market status in the Monday session. Take a look at the set. Asian markets looking pretty tepid with all of the event risk out there. Sydney futures down by just about a tenth of 1 percent, falling for a second session, suggesting we'll see very little change when it comes to the early part of the cash trading session. The Aussie dollar, though, still holding, saying that there still is a little bit of risk appetite up there, but still falling from that 71 us at level. Kiwi stocks down by just about a quarter of one percent. We are watching for potentially more devastating flooding to hit Auckland, bracing for another deluge of rain later on Tuesday. We could see a lot of these affected and impacted property, tourism and the like names being affected. But of course, this is already a city that's been hit by a record downpour, downpour that has been very, very devastating and impactful on the ground. We're watching again as well, trading just that 130 level. But of course, so much of this is down to the Fed. There's also geopolitics in the fray as well. The Biden administration is now considering cutting off far away from all of its American suppliers, including Intel and Qualcomm. This crackdown on Chinese tech is just intensifying. SALES from U.S. firms Jihye Lee have been limited for four years now since the former president, Donald Trump, with the company on a so-called entity list from Wallace Brain Bloomberg's Alex Wing. So, Alex, what are we seeing in terms of the signals from the administration on what the next steps are? And what about the timing? Yet we are expecting the administration is going to fairly soon stop all suppliers, all U.S. suppliers from selling gear to to walk away. This, of course, began under the Trump administration four years ago. President Trump for President Trump under him. The Commerce Department started requiring licenses for for any company in the US to sell anything away. At the time, there is speculation this was aimed at preventing Wall away from dominating the emerging market for 5 g broadband gear. Since then, the Wallabies business has changed a lot. It's still a telecom giant, but it's hard to reorganise and and then stop doing some of the things they used to do. A bunch of U.S. suppliers were hurt by that initial action, including Broadcom. But some companies have been able to continue selling to the company, including Intel and Qualcomm, because while we still make some some products that that that they're allowed to contribute to under under this new policy change, that would have to stop. And we we've also seen reporting that that the Commerce Department is already starting to reject license requests to sell to away. Phillips says. Drip, drip, drip of incremental action on the part of the Biden administration. What started under President Trump is what might be next. Like. Yeah, well. You'll recall that last week the Biden administration reached this deal with the Netherlands and Japan to to limit exports of advanced chip making machinery to China. That's that's an order to stop China's military from obtaining the most advanced semiconductors it needs to build to build better weaponry. There's there's this there's this environment in Washington these days where it almost seems like the Republicans and Democrats are trying to sort of out China Hawk each other. Both both parties really are interested and in tightening the screws on China and preventing China from overtaking the US either economically or militarily. The Republicans took over the House, of course, last last November. They're in power now in the House. And they are putting a lot of pressure on the Biden administration to to ratchet up tensions with China, not not to step back, even though the president and the Chinese president had had a relatively successful meeting and Bali just a couple of months ago. Yeah, Alex, there was so much optimism, you know, well-founded or otherwise about that meeting and whether this kind of creates those much talked about God where. Right. Does this mean going hard on China again is gonna be a core part of that 2024 strategy? Absolutely, I think. I think the president and his team are probably well aware that if they if they make any concessions to Beijing, they'll they'll get hit over the head before it and the campaign. And so they are they are definitely interested in making sure that they can look as tough as possible and there and their dealings with China. Alex, thank you. That's Bloomberg's Alex Lane for us there in Washington, D.C.. Traders are cautious heading into another week of big tech earnings and the Fed's interest rate decision. For the latest market moves, let's bring in Bloomberg's Emily Griffith. Oh, so, Emily, we had a lot of warnings today. Paul Krugman, for one, saying markets still be too optimistic here. You might be getting yourselves into trouble. What are investors watching? Right. So we do have that Fed meeting on Wednesday. And while most market participants are saying we're going to get a 25 basis point rate hike, that's pretty much priced in. It's really going to be about what Powell signals for the future. We know that a lot of market participants and the swaps market is pricing in a rate cut. But we've heard from a lot of Fed speakers, Powell himself, that they don't want to cut rates. So it will be a lot of focus on that. And then also what Powell talks about, if he addresses the easing in financial conditions in the stock market rallying. Is he going to talk about whether that is a risk or not? I was looking at a few strategists notes. We do have Morgan Stanley's Mike Wilson. He's one of Wall Street's biggest bears, saying investors seem to have forgotten the cardinal rule of don't fight the Fed. Perhaps this week will serve as a reminder, certainly today serving as a little bit of a reminder on that. The dollar weakness. What does that mean when it comes to tech stocks as well as earnings? Well, Heidi, we were talking a lot last year about how the dollar strength was going to hurt a lot of those technology companies that have a lot of their sales abroad. But now we're seeing a little bit of dollar weakness, not today, but more broadly, the dollar is off of its highs and most of the sell side expects it to get weaker. There was an interesting note from Bernstein. They estimated that the stocks that they cover will see a revenue benefit of one point seven percent to four point two percent this year from the dramatically weakening dollar. So it's interesting to see how that narrative has shifted now. Weaker dollar could be good for technology stocks. Will it be enough to save tech stocks from all the other risks building up? That remains to be seen. And it's also interesting, Microsoft was one of the first companies last year to talk about how the stronger dollar was going to eat into their earnings. And even now, we've seen that dollar coming off just a little bit. But they still said in their conference call last week, based on current exchange rates, sales growth this quarter will be about three percentage points lower. So will this dollar weakness be able to save tech stocks immediately or is it going to take a little bit longer? Something I'm watching. Bloomberg's Emily Graff Air, that Indian conglomerate Adani is facing another crucial test, its records share sale scheduled to wrap up later. The group has lost almost 70 billion dollars in market value following the report from a short seller. Hindenburg Animal Jewelers is here with the latest. And about what sort of interest that we're seeing now in the light of all of the developments for the offering. Yeah, well, just in terms of the sheer scale, Heidi, it's interesting when you compare what we've heard from the companies so far versus to what we're actually seeming to hear in the market instead, because the company, Adani Group has said this 2.5 billion dollar follow on share sale is on track. It is going to be ending on Tuesday. And there's been no entertainment, really, of talk around an extension or a discount. But that has not stopped the speculation building amongst investors because we at least have some signals that are really coming through quite strong ones from the demand side. Investors in Indian IPO, as you do need to say, they typically wait until the last day to place the bids. That would be today, Tuesday. But even when you put that in mind, overall subscriptions for this are only about two percent so far. That was according to filings to the Indian exchange on Monday. But you can bet that to another recent offering that we had. Yes, bank in India, by this point in their shale sale process, they had about 53 percent subscriptions. So 2 percent is really quite a ways from that. A lot of the issues here are really stemming around the price of the shares because the shares are now trading below the band or the bottom end of the band for the share sales are really difficult for any investors to justify buying this FBO at this point. And some analysts saying that we're either going to need to see an extension here, even if the stock does manage to climb above the share sale price. But you can see this chart here really just showing the plunge that we've seen. We did see a bit of a recovery in Adani Enterprises yesterday, but other green energy transmissions, they really continue to slide and heating their trading limits of losses of more than 20 percent intraday. Well, this was a share sale. It was supposed to be opening Adani to a bigger pool of investors on a bell. Hasn't really worked so far of. Now, that's right, it was really something I could try and woo the retail crowd in India also appeal to a more international audience, but so far instead, Adani Group has really been stuck relying on its existing investors. And a big portion of that is actually coming from the UAE because we have international holding CO, which is controlled by a key member of the Emirates royal family, is gonna be investing about four hundred million dollars in the shares house. That represents about 16 percent of the offering and it follows an almost 2 percent, rather, to billion dollar investment in Adani companies last year. So almost half of that coming last April. But as I said, really, this is certainly going to be one to watch when trading starts in India later. Really watching as well. What happens with the stock prices given we're seeing losses now approaching 70 billion dollars, Heidi. I imagine I was there in Hong Kong and also watching Apple and Apple suppliers. Today, we're just hearing now that U.S. labor officials have found that Apple executives violated worker rights. Comments by Apple corporate executives and policies that were imposed on their employees have been deemed now illegal by U.S. National Labor Relations Board prosecutors. They say that they violated workers rights that determined that these various work rules imposed by Apple tend to interfere with restrain or coerce employees from exercising their rights to collective action. This came from a dispute that was brought to the agency by a former employee. This was back in 2021 with these allegations that an email that Tim Cook had sent pledging to punish leakers, as well as a set of policies in Apple's employee handbook that violated federal laws. These are things like restrictions for staff from disclosing business information, speaking to reporters, revealing compensation or posting impolite tweets. All of this is now being deemed a violation of worker rights, according to U.S. labor officials. Let's get you over to Su Keenan with the first word headlines now, sir. All right. Thank you, Heidi. We start with Malaysian Prime Minister Anwar Ibrahim. He is demanding the Goldman Sachs honor its settlement for its role in the one MTBE scandal. The agreement called for Goldman to pay two and a half billion dollars and guarantee the return of one point four billion in seized assets from the state fund in his first international interview since becoming prime minister on war told us. Goldman need to come clean. I think Goldman Sachs should come out clean and deal with Malaysia. Do you think that you can, you know, dismiss this as something small, that you can just use your strings to dictate your terms to Pakistan? Now, a bomb attack on a mosque has killed more than 70 people in northwestern Pakistan, leaving more than 150 others wounded. The blast happened during afternoon prayers, plowed close to push showers, police headquarters and other government offices. It's Pakistan's worst such attack in almost 11 months. The U.S. and Israel, meanwhile, say they're committed to making sure Iran never gets access to nuclear weapons. Washington's top diplomat, Anthony Blinken, is visiting Israel and the occupied West Bank. As tensions rise across the region on Saturday, Iran's had one of its weapons depots was hit in a drone strike. Tehran has not officially laid blame, but the Wall Street Journal cited sources saying Israel was responsible. And China's budget deficit jumped to a record one point three trillion dollars last year, showing the strain put on local government finances to offset the Covid zero policy. The overall deficit puts local governments in an increasingly poor fiscal position and could make Beijing more reluctant to support the economy through spending. Global news powered by more than twenty seven hundred journalists and allies in over 120 countries. I'm Su Keenan. This is Bloomberg to thank you. Still ahead, our exclusive prime minister of Malaysia, Anwar Ibrahim, tells us it's time for Goldman Sachs to pay off on its one NDP settlement. But up next, the CEO of Worldwide Financial tells us why she's tracking payments companies as a gauge of U.S. consumer strength. This is Bloomberg. The Fed is expected to dial back to a 25 basis point hike, want to make sure they don't go too far. Pivotal moment to make some decision. But will they go so far as to signal a pause? We have a long ways to go. Trust Bloomberg for the fastest coverage and exclusive analysis, including former Fed vice chair Richard Clara. The recession fears are tangible. What's the mistake? This yet doing too little attention. Stay tuned. This is going to be with us for a while. Bloomberg Surveillance. The Fed decides Wednesday on Bloomberg, your global business authority. I'm a little worried that Marcus may be getting ahead of themselves. I mean, I'm not I'm big inflation dove. I'm still basically I believe that inflation is going to come down. But the degree of certainty that we're seeing in the market is the degree of certainty I'm seeing in financial newsletters that inflation is behind us. That makes me nervous. Nobel laureate Paul Krugman speaking with us there on inflation and inflation expectations. Well, U.S. tech stocks fell ahead of the Fed's rate decision. And, of course, earnings reports are due later this week from Alphabet and Meza. Our next guest says she is listening to payment companies to better understand how consumers are feeling worldwide. But until CEO Lorraine Gilbert joins us now. Lori, just on Paul Krugman ISE comments, they're warning the market basically not to get too excited about inflation finally peaking and maybe coming down. How much more do these tech companies have to worry about interest rate increases? Well, we know we're closer to the end of this than the beginning of it, so for tech companies, they're starting to breathe a sigh of relief, but not quite yet. So we do expect 25 basis points this week, although some of the markets today have been jittery around the possibility of a 50 basis point increase. And then the key is to listen to what the Fed says. Are they signaling that they're going to hold? Do they still say there's more to be done? And that's what we still have to see. Bloomberg intelligence estimates that tech companies are so quite overvalued. Is that how you see the space? Is there overvaluation? What brings them back to a correct valuation overall? Well, I think this week we're listening to from some of these earnings calls that some big tech week and what we want to hear is on ad sales specifically. So from some of the CEOs of these companies that are highly dependent on advertising sales like Metta, Google, et cetera. We want to hear what the expectation is on ad sales. And so if that is positive guidance, I think the markets have been in a risk on appetite right now. And more specifically, if we really look at what's happening before and after earnings calls. What we're seeing is that there's somewhat an equal response to the upside, whether companies missed the expectations or not. And that tells us that we're still on right now a risk on market. Lorraine, what are your views on international exposure at the moment and how you gaining it? Well, right now, what we're seeing is the gap between the US on rates and the rest of the world is closing in. So we do expect this week with the ECB to raise rates by 50 basis points, whereas the US by 25. And so what that means is that we're seeing the dollar somewhat roll over as we're getting to the end of our rate hikes and the rest of the world still has more to go. So with that, it's very favorable for international equities. And with that, we've been increasing our international exposure. In addition, we see the China reopening as a huge catalyst for emerging markets. So most developed markets in emerging markets. We've been increasing our exposure. What are the biggest risks to the growth outlook? Because a lot of this is being pegged to kind of the sure fire deal of the China reopening, right. Do you see risks that stem from that be at things like a changing inflation outlook for the rest of the world? Well, there's always lots of risks out there, and certainly a geopolitical risk is the biggest one. You know how much more geopolitical surprises may we see? We saw that happen in 2022. So now looking at 20, 23, of course, that's still on the table as far as more risks that are out there apart from a geopolitical risk that's out there. I think that that in many ways we're very positive going forward where we are from here. We're even starting to see economically some of the big banks talk about no recession, whereas we still have an expectation of potentially a mild recession in the United States. But there is the possibility still of a soft landing. Those recessionary fears play into views when it comes to energy stocks. What's your positioning when it comes to energy at the moment? Yeah, so we've seen energy starting to come down, and as inflation starts to wane, then we can also see the expectation there of energy prices as well coming down. So it's been certainly a huge wave that's been run. And I think that longer term, I think looking at some of the energy names that are in the renewable spaces, I think that certainly has a lot of growth opportunities still. All rights worldwide. Financial CEO Altering Gilbert. Joining us there. Thank you. And you can get a roundup of the stories you need to know to get your day going in today's edition of DAYBREAK. Terminal subscribers, you can go to day be go. You can also customize your settings so you only get news on the industries and assets you care about. This is Bloomberg. A quick check of latest business flash headlines, Chinese electric vehicle maker X Fung has pushed back its profit goal until 2025. Following what was a horror year in which his shares plunged 80 percent. The Gong Show based company delivered less than half of its annual sales target in 2022. çehre, who is outpolling, told us exclusively. But he's now betting on full self-driving technology to help the company turn an operating profit to just go on and nowhere in the next five years. We may still be a company with only a certain market share in the new energy vehicle sector, but we hope to hold 20 to 40 percent of market share of cars equipped with fully autonomous driving technologies. Ford is slashing the price of its electric Mustang. Mak e by an average of four thousand five hundred dollars. In response to Tesla's recent cuts, it steps up the price wars in a slowing evey market. Although it comes on a model Ford that has already described as unprofitable. The move also brings them back in line with new price caps to qualify for tax credits under the Inflation Reduction Act. Twitter has made us most interest payment on the Covid a half billion dollars in debt that Elon Musk used to take the company private last year. It paid a group of seven banks led by Morgan Stanley, which became stuck with the debt. The first coupon is estimated to cost Twitter roughly 300 million dollars money. Well, Heidi, let's take a look at ethics markets now, because that was the channel through which we saw much movement today. In fact, the dollar index, I was up about three tenths of a percent, and that pushed other currencies around a little bit, most notably the yen level. Very special interview on Japan a little bit later on. So stay tuned for that. But as you can see, the Aussie dollar really trading unchanged right now at 70 cents, 58. We get retail sales a little bit later on. NATO Secretary-General up next, Terry Jones, South Korea to increase its support for Ukraine. We'll get analysis from the U.S. Institute of Peace. This is Limburg. Labor officials in the United States are saying that comments by Apple executives on policies imposed on employees are illegal. Let's get more from Bloomberg's labor reporter now, Josh Idols. Josh, how unusual is this for the NLRB to come out with a decision like this against a mega tech company? You know, we've seen scrutiny at Apple and at a number of these leading companies in recent years. Apple was known for a long time for relatively peaceful, at least in the public eye relationship with workers. And we've seen in the past few years both much more public dissent from software workers at Apple and also this unprecedented wave of unionization within the retail stores. At this point, this is now one of several cases in which workers brought allegations to the labor board. And the prosecutors at the U.S. National Labor Relations Board found merit and concluded that in their view, the company did violate the law. And so either they've issued complaints or they will issue a complaint unless the company agrees to settle. So unless the company settles, this is likely to end up before an NLRB judge and then from there being considered by the members of the agency and potentially in federal court. Judge, is there precedent as to how other major tech giant Apple would handle this kind of thing? What's the likely outcome? So Apple already in another case is denying wrongdoing and was at an alert B trial regarding its World Trade Center store in New York, where the company argued that it doesn't suppress people's views and in fact, it encourages workers to speak up about issues that they care about. We have seen disputes between the NLRB and tech companies, particularly Amazon recently, where Amazon has signaled it's likely to keep appealing the labor board's conclusion that workers legitimately voted to unionize in Staten Island. That is a case that could go all the way into federal court because Amazon in part was arguing to the NLRB that the NLRB itself handled the election on Staten Island in an unfair way. And for that reason, the election should be thrown out. At what point, if at all, do we see actions like this actually impact investors and maybe even the Delphi's? So the NLRB, because of the way the agency was set up, does not have punitive damage power. It does not have the ability to hold individual executives personally liable. People who watched Gossip Girl recently may have gotten the impression that union busting is something that someone can personally be criminally liable for. But in fact, the way that U.S. labor law works is not that. So what the NLRB would have the power to do is to order the company to change its policies. And there have been a series of cases involving companies, including Boeing, where a company says that rules in its handbook are neutral and not anti-union. And the NLRB argues that those rules and involving things like what you can say to reporters or what you can tweet actually have the tendency to chill people's right to speak freely with co-workers about workplace issues. And so this could be a case, again, that tests that precedent about which rules that a company says are designed for civility or for secrecy. That's appropriate. In fact, are found to have violated workers collective action rights. Josh, I'm assuming you're talking about the Gaza girl reboot, not the original one, a reminder that I need to catch up on my pop culture references as well. Jeff Adelstein there in San Francisco with the latest on Apple. Let's get you over to Su Keenan with the first made headlines. All right. Thank you, Heidi. We start with the Biden administration, which is said to be considering cutting our way all from all of its American suppliers. Sources tell Bloomberg that some officials are pushing to ban all sales to walk away over suspected ties to the Beijing government. And Chinese military sales were restricted four years ago under the Trump administration. But U.S. suppliers, including Intel, MDA and Qualcomm still do business with one way. The CEO of Ticktock, meanwhile, will testify before a U.S. House committee on the company's policy policies and its relationship with China's Communist Party. The hearing set for March 2013, which we chose a choose first appearance on Capitol Hill. The Republican committee chair says Tick Tock has knowingly allowed the Chinese Communist Party to access American user data. Our panel of experts has recommended the Japanese government and the central bank revise a joint policy statement to make their inflation target a long term goal. Market players are interpreting the remarks as further evidence that policy adjustment is likely. This after new leaders take over the DOJ. The government is set to announce the new governor and two deputies in February. To Chile now, where the government says it is looking at new ways to encourage investment in green hydrogen by expanding grants and loans to developers. To Labor's Energy Minister Diego Pardo spoke exclusively with Bloomberg, saying the government wants to create new opportunities. But he also says some policies of the previous administration will remain to keep promises made to investors. We are keeping the promises made by the previous government would have done it so far in the first floor that we will publish is that law that provides incentives for storage. That was a law that was initiated by the previous government in the ceremony in which we celebrated the pool of below global news powered by more than 20 700 journalists and analysts and more than 120 countries. I'm Su Keenan. This is Bloomberg or NATO. Chief Jens Stoltenberg has called on Seoul to send military aid to Ukraine during a visit to the South Korean capital. He's now set to meet with Japan's prime minister during the second leg of the trip that seeks to shore up Indo-Pacific alliances. The U.S. Institute of Peace senior policy analyst Myrna Golic joins us now from Paris. We appreciate your time and so late in the evening for you to join us. Mina, great to have you with us. Can you set the scene for us in terms of the appetite for these sorts of alliances and coordination, given that we have seen the war in Ukraine just dragging on? There's no sort of prospect of an end in sight. And of course, the overwhelming challenge in this part of the world is what to do about China. Well, thanks for having me on. Yeah. This is quite a significant visit, but it's not the secretary general's first visit to China, to Korea and Japan. He last visited both countries in 2017. And since that time, NATO's interest in coordinating with its partners in the Pacific has only increased. Although these partnerships with these countries go back to the early 20s. So it's been quite a while, but NATO has had formal relations with these countries. But as in the past few years, the alliance has realized how important this region is for Europe and also some of the challenges that China can pose to Europe. It's only grown more interested in engaging closely with these partners. And that's part of what this is just about. And certainly Russia and the invasion of Ukraine is also a factor here because Korea and Japan, as well as Australia and New Zealand, the other Indo-Pacific partners of NATO in the region, have all ponied up and coordinated with the alliance on support to Ukraine. And that's something that Europeans are grateful for and that certainly the secretary general want to see continue, if possible. Well, more to South Korea is one of the larger things. Sorry, Japan. We've seen Japan overhauling its own national security policy going forward, it's not clear how that's entirely going to be funded. We know that there's been a renewed area of policy focus here in Australia as well. And so much of this goes back to the rise and the increased assertion that we've seen from Beijing. Right. Does that help or hinder NATO's attempts to try and deepen ties in the region? Well, I think, again, it's important to point out that NATO's ties in this region pre-existing its interest in China and China's interest in it. So, you know, NATO's building on relationships that it's already invested in for years and years. And I think that helps provide a little bit of of background. It's not as though these relationships have suddenly now come onto the scene because NATO has become a little bit more concerned about the potential of China to present security challenges to Europe. So in that sense, I think that there's a longer context here that that helps. But certainly China's not pleased with NATO's growing interest in partners in this region. And it's made that abundantly clear through its statements. The likes of South Korea already has a nuclear power to potentially deal with Mirna. Obviously with North Korea, how much would it want to have another potential nuclear power going forward, literally? By that you mean China, Russia or Russia? Oh, well, certainly, you know, North Korea. Korea wouldn't want that. But I think that one of the issues that's probably on Korea's mind is that, you know, that there's certainly allegations and evidence that North Korea has been supplying weapons to Russia as part of its war in Ukraine. So it's a bit difficult, I think, for, you know, this region to sort of stay isolated from what's happening in Russia and Ukraine. And I think the Koreans realize that. And also, I think, you know, it's important in the mind of the Korean government to make a statement and to stand with other democratic countries against this notion of the use of force to change the status quo. So, you know, I think that they've they've they've come out against that strongly and that they're taking actions that support that. It does seem like Jens Stoltenberg wants to get more countries on board. Obviously, many European countries would like to broaden the amount of countries that are taking an actual stance against the war as well with tanks and other types of material. How successful will he be? In the region, I would say, you know, we'll see how his visit goes. But, you know, I think he's done quite a lot to rally countries around the around all of Europe to supply equipment. And I think with help from the US and other countries, they've been quite successful in providing equipment for Ukraine. But it's also, you know, I think it's not just, you know, tanks and things that that that the Ukrainians need. I think the countries in this region, particularly Japan and Korea, as well as Australia, certainly have provided humanitarian and other equipment as well as political and diplomatic support. So there's lots of different kinds of support that can be given to Ukraine. And the countries in this region have certainly stepped up. Thank you so much for joining us. Myrna, that is the U.S. Institute of Peace senior policy analyst. Myrna Gallic joining us there from France. Some breaking news now. The AP is reporting that President Biden will end Covid emergency declarations on May 11th. So we have a date now for when President Biden will end Covid-19 emergency declarations. This according to the Associated Press, May 11th. We'll see the final end to the emergency declarations on Covid-19. Up next, we'll hear exclusively from Malaysia's prime minister, Anwar Ibrahim, as he demands. Goldman Sachs makes good on its multi-billion dollar settlement deal over the one MDD scandal. This is Bloomberg. You're watching DAYBREAK Australia will Samsung will report more detailed fourth quarter earnings latest. Let's discuss now for morning calls in terms of what we are expecting from analysts and their reactions to those results that could come out in the next hours. So essentially this chart here taking a look at the consensus forecast that are coming through. Of course, we had those preliminary numbers at earlier this month and they showed the biggest profit drop for the company in more than a decade. Even though Samsung does have a more diversified product line up markets as well, it is not immune to those risks that are facing the semiconductor industry with this industry wide glut. And that is down to those more macro factors around inflation, economic slowdown, geopolitical tensions as well in the fray. So changing on now for a look at what Bloomberg intelligence is expecting. And they're basically saying that the grim preliminary numbers adding a lot of pressure on the company really needs to shift to get try and lower its output, its CapEx. And that really is going to be the big focus from analysts say, when we get that call later this morning, Bonnie. And balancing that Bank of America is also looking at smartphone demand. Tell us more. Yes, they've been looking at some of the key smartphone vendors, so these top three, they're a little bit more cautious on Broadcom, though they are saying it does have some potential for near-term trading bounce. A couple of factors that play into this, of course. This looks at the run up that we've seen over the course of this year. There is firstly valuations and then there's also anything around China. And of course, that demand that can come from there, as well as well-known iPhone weakness in the industry. So that's likely also baked into the sentiment around these stocks already. But over the longer term, they are turning a little bit more cautious on these. And essentially they're saying that the smartphone chip market is starting to resemble what we see in the P.C. market in terms of valuation metrics. If you change on now. Take a look at what Bank of America is saying in more detail. They're basically saying that a lot of structural issues do remain in the industry. Firstly, we're past the peak of 5G content growth. There's also rising competition here from now, our product vendors and then there's also a customer insourcing risk to some of the things that Bank of America is looking at as well Heidi. And Emma Chandra sat in Hong Kong for Malaysian Prime Minister Anwar Ibrahim is demanding that Goldman Sachs honor its multibillion dollar settlement with the government for its role in the one MTBE scandal and his first international media interview since becoming prime minister. I'm also told us a clean, corruption free government is the best way to unlock Malaysia's potential. From the first deal, you must give a clear message no more corruption, no more negotiate the tenders, no more abuse. And you give that set and you remain consistent for days and weeks and months and years. I'm sure the people decide not nobody your fear, but the fable of a new narrative. A new policy. And Malaysia has enormous potential from all races to regain its past things and move beyond the one EM TB crisis is the story that keeps on giving. We know that Goldman has publicly allege that Malaysia has undervalued the assets already retrieved by Malaysia. What's your response to that? What I've said before today, remember the Bloomberg session that the complicity of the international finance institutions, including particularly Goldman Sachs, is there other ways when you wouldn't have happened? So we entered into negotiations. I would suggest that will be be reasonable with us. B was due and negotiate the terms. I do think there should be two pre-emptive in trying to suggest that the will not honor because of the deals that we have made in the past. It is a crime not to me or the government, but to ordinary Malaysians. So that would be my. My response. My response to the issue of Goldman Sachs. How much does Goldman Sachs still owe Malaysia? Are we looking at 250 million, as I suggested before? Where did the president sort of arrangement? I would want to see a more responsible response from Goldman Sachs so that we can end this. I mean, it is a big institution. It does its strength. There are some positive issues with them, but there are also huge problems in the bus. And I don't think I would want to venture to that. But my only appeal is for them to make me settle this deal with Malaysia, because when MTV is known throughout the world, it is it is there in the books. And I think Goldman Sachs should come out clean and and deal with Malaysia and do the thing that you can, you know, dismiss this as something small, that you can just use your strength to dictate your terms. Prime Minister Goldman says that Malaysia is intentionally undervaluing the assets to force Goldman to pay the two hundred and fifty interim payment. If you want me to pursue that, I would say that. Given a fair deal, we are. We were supposed to be bit much more than that. Which I intend to then deal with them. If this thing is not is not settled amicably, this ISE, it is not my intention. I'm just new in the game. I just want to settle old scores. I mean, I'm done. I was going to sense that. What about all commitments that we have made? We have to move on. If they come to no pleasure us on this, I will have no choice. Because I have a mandate for my people. And people are struggling to live. And you usually the hundreds and billions of profit and squandering, you can't just get away. And by ignoring your moral responsibility. And what system as. Financial responsibility. Malaysian Prime Minister Anwar Ibrahim is speaking exclusively there with Bloomberg's has Linda Arman. And when we put onwards comments to Goldman Sachs, they referred us to their latest 10 Q filing, which gives the parties three months to resolve their dispute. I want to point out some breaking news on the terminal now. It appears that some bagman Freed's sureties identities will now be made public. A judge has decided that the identities of two people who helped secure some bagman Freed's bail can be made public. That's going to be on hold until February 7th. That's one week from now. So it will allow for an appeal. But as of now, a judge has decided that those two peoples identities can be revealed. More ahead on DAYBREAK. This is Bloomberg. Here's a quick check of the latest business headlines. A U.S. federal appeals court has ruled that Johnson and Johnson cannot use bankruptcy to resolve more than 40000 cancer lawsuits over its baby powder. The company had put its specially created unit under court protection to block juries around the country from hearing the lawsuits. The new ruling means that JNJ will likely need to defend itself against the claims as NBC NIKKEI Securities lost money for a third consecutive quarter, underscoring the continued damage from a trading scandal. The securities arm of Mattel over to the financial world posted 115 million dollars in net losses exceeding the previous quarters record. The company's CFO says the suspicion of illegal market manipulation caused a loss of around 61 million dollars in net revenue. Philips shares jumped the most in more than two years after it vowed to improve top and bottom line figures. Philips expects to deliver a low single digit sales growth. So supply chains improve. It's also slashing 6000 jobs. That's about 8 percent of its workforce to counter inflation and potential recall expenses. We're looking at the full year of 2022. It was still a very difficult year for Philips. We have announced indeed that we are going to reduce the workforce by not to 6000 people. That's a sizable and impactful measure that we see necessary to indeed address the rising cost across the company and to the world, but also to make us more agile because we changed the way how we work. This is what we're watching when it comes to the start of trading. In just about five minutes or so, we are expecting a pretty tepid start to the cash session here in Sydney. Not much in the terms of big moves across bond markets either. We are getting some key data for Australia today, including retail sales that's expected to have moderated. And we're also expecting to see the gate at the losses we've seen across housing prices as well to moderate as well, particularly across major cities with that CoreLogic property price index due today, just a few minutes out from the start of trading here in Sydney, where we are expecting money, a muted beginning to trading. We'll have our eye on it. And coming up in the next hour as well. Alliance Bernstein's senior investment strategist tells us why he's optimistic about the Chinese markets, but not many others. Then, the IMF mission chief for Japan rally in Sun. Gato joins us to analyse the Japanese economy and what the BMJ should do. That's it for DAYBREAK. Australia DAYBREAK. Asia is next. This is Bloomberg.

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'Bloomberg Daybreak: Australia' Full Show (01/31/2023)

Haidi Stroud-Watts in Sydney and Shery Ahn in New York drive to the Asia, Australia and New Zealand market opens while wrapping the biggest stories of the previous day on Wall Street. Today's guests: WealthWise Financial CEO Loreen Gilbert, NATO JAPAN: Mirna Galic Senior Policy Analyst, China and East Asia (Source: Bloomberg)

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