How inflation and supply chain are affecting this business. Gains and losses despite s p closing yet again at another high. Asia dragged down by japan and china as well. More reason for the boj to exit negative rate. Agreeing to meet all the demands including a bonus of more than seven months. Among the last pieces of the puzzle for the boj. Now we await ringo coming out on friday. Take a look at where we are and start in terms of the nikkei 225. Csi 300 index also in the negative. Seven tense of 1 . Vaca trying to avert a default. Said to be in talks with banks. Country garden missing that payment. Csi index under pressure. Its in bull market. Pretty much in line with what we saw overnight in terms of those adrs. Now to our top story. Expectations rising for the boj to move on rate. Investors looking to cover signs of a sustainable wage price cycle. Toyota meeting labor Union Demands for wage hikes in full. For more on this, lets bring in rich davidson. Take us through the negotiations. What are the details. What you are seeing is a drumbeat of information. We have the japanese didi pd gdp being revised upwards. No longer in a recession. As well as Consumer Prices holding steady. This week, toyota responding to its unions, saying that it will meet its demands in full. We dont get the full figures from them but we know this is the fourth Straight Year and probably the biggest in decades in terms of a wage rise. At the end of the week, we are going to get the collective Bargaining Union for all of japans unions coming out with its initial tally of raises by companies. What ringo is looking for is a 5. 85 wage hike. Thats pushing it. That will most likely deliver some sort of result near that range. As long as its above the 3 threshold. That should be additional evidence for the policy board to start to consider. Haslinda japan wages finally coming up to inflation. Reed you are seeing prices rising. Japanese workers have not really asked for wages or wage increases for decades. This is almost like a new thing for an entire generation of workers. What they are saying is, our living costs are rising. The Cash Register at the Grocery Store is hitting our pockets even more. Now we need to get compensation to make up for that. This is sort of the classic wage price hike cycle that the boj really wants to see in order to justify pulling out of a long time of loose monetary policy. Haslinda finally, toyota adjusting wages. Reed stevenson in tokyo. Will toyotas wage stocks talks move the needle . Good to have you with us. Perfect day to be having this discussion. Doesnt move the needle for you . For you, the base case is april. Yes. Its about the stars being aligned. We are getting to a point where we are looking at the economic numbers, the Inflation Numbers reaching to appoint that the boj is starting to get comfortable. The government in line with boj. This hasnt been the case for years. The pm has said, this is the time when inflation is reaching this point, wages are reaching this point. We want to call for the boj to start moving as well. The third thing that is happening is this window. The window between whats happening globally in terms of what the u. S. Is doing, in terms of thinking about lowering rates at some point in the future. This is the window for the boj. All three stars being aligned is triggering the market to think about what happens in april versus march. April is going to be key. They might want to wait to see what the numbers are because this is an important sentiment for how businesses think and japan. Haslinda that is does it matter if it is are part march or april . How are you looking at it . What risk markets do might be different. This is the opposite reflection of the fed, how rates and equities are doing in the u. S. Here, you are right. Rates markets have to think about whether they want to price in a march move towards that. Whats more important is also the nature besides what the Interest Rate policy is. Its what happens to the yield curve control. Markets are starting to think about, how would that evolve . Its all about keeping a level yield, which we are loosening some boundaries around at 1 . Now the market is starting to think about the quantity of jgbs that they can buy. Is it about when they can buy, how frequently they can buy . Its getting more nuanced. The rates move is not entirely down to just what happens to an irp. Haslinda what does it mean for dollaryen . We are talking about a move by the boj to zero. People are talking about repatriation of funds. How is that likely . How would everyone move from 5 to almost nothing . Theres two parts of this. One is the relative angle. Haslinda its optics. Howe its also where you started from, your starting point. The other part is on the hedge basis. Depending on the pace of the fed move versus the boj, that could have an impact on jgb yields. Theres an element and not just absolute levels. Haslinda where to for the yen . How much more upside . Are we looking at current levels . Howe we need a few steps towards that. Its similar to how the equity markets but gave. Japanese equities are down to the exporters. There is another leg down to it. The correlation between the yen and equity markets can have another round on how the boj things about rates. Haslinda how attractive are japanese assets right now . You will not see consecutive moves. Howe we like some of the financials in the credit space. We think thats been a place where theres an allocation to that space. Japan thinking about how the Financial Sector is going to do better from here on including the equity story. Thats an opportunity for us. Haslinda the biggest risk right now, given that markets have run ahead of himself already . Howe its again that runs more than what the boj can manage. Its just the very same opposite of what we thought. We hit 150. Now the opposite might be, just depending on the over under. Haslinda hang tight. You are sticking around. We speak exclusively with the ceo of singapore and fashion retailer love benito. We discuss their brand revamp and expansion plans later this hour. Keep it here with us. This is bloomberg. At cdw, we get if your npower , your business goes with it. Recording thanks for calling, we are unexpectedly closed today due to. Cdw experts can keep you up and running with an apc smartups lithiumion ups from Schneider Electric. It offers cloudenabled Remote Monitoring and three times the battery life, so you can get the performance and certainty you need to stay open for business. For resiliency at the edge, trust Schneider Electric and it orchestration by cdw®. People who get it. Haslinda breaking news according to cbs and msnbc. Trump has secured the republican nomination. Trump has enough delegates to secure the republican nomination. Remember, going into tuesday, he needed 12 1215. He had 1184. As of now, he has enough delegates. Trump now formally recognized as the Presumptive Republican president ial candidate in a widely expected rematch with incumbent president biden. This according to cbs, msnbc. Nikki haley was his last challenger in the gop primary. Breaking news from cbs as well as msnbc. Trump has enough delegates to secure the republican nomination. We are talking about 1215 delegates at this point in time. Looking at where we are in terms of futures. S p futures in negative territory. S p closed at a record high just yesterday. Nasdaq, dow joins dow jones pointing lower. All on the back of that hotter than expected cpi print. Not enough to drag down sentiment in the u. S. Market yesterday. Our next guest sees a u. S. Recession in the next six months but says its needed for inflation to move. I just want to get your reaction on the breaking news. Trump securing the nomination. How are you looking at it, and the impact on the market . Howe as you said, we are thinking about that rematch in 2020. I think there are two or three ways to look at this. The first is really about what trump stands for. The market is going back to 2016 playbook. Trump thinking about growth, thinking about what it means for the fed is one angle. He knows its the economy thats going to keep him being popular and keeping him steady. I think that is something that will be very important. To is about sector differences. He has a knack at coming at certain sectors, thinking about names. So thats going to be another part thats going to be important to watch, especially with regards to energy, utilities, tech. These are few sectors that he always has a view on. And i think theres fiscal. How hes going to fund the fiscal deficit. This is against a backdrop thats very different from 2016. This is in a world where the u. S. Has been running a very high fiscal deficit. Of course, how he thinks about tax cuts. Whats the other side of it . In the biden world, they think about texas being offset by spending. But trump hasnt really articulated how hes going to do that makes between taxes and spending. Haslinda its a different environment but its the same trump. Trump saying that if he comes to power, he will continue to impose tariffs on china. Is there an asset class that will do well under a Trump Administration . Take a look at stocks and bonds right now. Theres a diversions. How do you see the various Asset Classes playing out . Howe i feel theres an element of one thing america and one thing investments and one thing growth to be strong in the u. S. Against the backdrop, whats needed to get that in terms of the fiscal deficit . In terms of geopolitical risk. So there will always be the other side of the coin. In terms of where he wants to get to, what is the cost for them to get to that point. Haslinda i want to take a look at the current market sentiment. It just wants to keep going up, especially when you take a look at the equity market. How are you looking at how traders are perceiving the harder than expected data out of the u. S. . And how its reacting in the markets. Howe i think theres a very nearterm cycle of which we are very data sensitive. Every payroll number. Every inflation number that we are looking at. What weve recently gotten from the last payroll and inflation was that the seasonality, the impact of the seasonality can be taken for what it is. It did not get blown out of the water. We did not get full relief from those numbers in terms of the fed getting comfortable. At least its a partial relief. Thats all risk markets need. The fact that the fed is still basically pointing to some point of easing or needing to move away from restrictive rates at this stage. We are thinking too much about the timing. Rates markets are the opposite. Here, rates markets are focused on whether its may or june. The risk markets are going to take it for what it is. This is going to happen and this is where we are going to see rate cuts coming. The flipside is about the new government. What we are seeing is a much more active fiscal policy. Basically got the u. S. To this level of growth where we are. Down to the Inflation Reduction Act or the chips asked. Bringing jobs back and active fiscal policy. It hasnt offset tightening. Its also had an impact on deciding what sector does better than the other. This is how we are thinking about moving in this world where risk markets are very comfortable in selecting where is cheap and keep moving on. At the same time, they are not too fast about whether its may or june. Haslinda dot plot. 73 perhaps given the inflation remaining very sticky. Stickier than most people expected. What are you expecting . Howe i think its going to be a close call. Haslinda between . Howe our baseline is june. At least three or four cuts. We tend to be more biased toward more than less cuts. Thats largely because of what we see in the forwardlooking indicators and how we disagree with the payroll numbers, how we see the details of the inflation print. We feel comforted by the details and reassurance. We feeding think inflation will come often growth will be weaker than what we are seeing at this stage. That said, what we are going to see in the march meeting in terms of sep forecasts is going to be a close call. We still think at this stage that we are a long way between here to may and june. The fed has to hold their rhetoric. Talking as though they dont really want to move with the intention to move at some point. Haslinda are we underestimating the possibility of a cut followed by a pause . Howe i think the fed has somewhat of a way of thinking how they move along the cycle. Its not out of the possibility. From the fed point of view, in terms of communication and rhetoric, when they decide to go on a cutting cycle, they do really. Its not about power, trying to lift off from emergency levels. Thats where we were. That was a different world. You could hike once and stop. This is a world where they are coming off from us a tightening cycle. Theres a view of getting to some point. Which is why the objective tells you that when they actually start, they want to get to some point at the end of it. The question is where the destination is. Haslinda how are you persisting positioning . What are you advising clients to do . Howe the base case is we are going to look more mediumterm. At the end, we feel rates at this level. Theres room for cuts. Thats not what we are playing for in terms of timing. We can trade around it. We see fixed income is a place to be. Thinking about the type of returns we are getting. We are getting yields we havent gotten for 15 years. This level of income, of longterm income from where we are sitting in the capital structure, we are comfortable with it. In a world whereby we think carrie is going to outperform beta, weve been so selective. Its important. Knowing how to pick winners and losers is important. Thats what we are here for. Haslinda thank you so much for your insights today. Plenty more ahead. Keep it here with us. This is bloomberg. Okay yall we got ten orders coming in. Big orders starting a business is never easy, but starting it eight months pregnant. Thats a different story. I couldnt slow down. We were starting a business from the ground up. People were showing up left and right. And so did our Business Needs the chase ink card made it easy. When you go for Something Big like this, your kids see that. And they believe they can do the same. Earn unlimited 1. 5 cash back on every purchase with the chase ink business unlimited card. Make more of whats yours. Sales tax automatically. Avalarahhhhhh what if tax rates change . Ahhhhhh filing sales tax returns . Ahhhhhh business license guidance . Ahhhhhh crossborder sales . Ahhhhhh item classification . Ahhhhhh does it connect with acc. . Ahhhhhh ahhhhhh ahhhhhh haslinda taking a look at chinese benchmarks. Hung saying in positive, up to tens of 1 . Hstech gaming. Adrs overnight had quite a rally there. And i on the csi 300 index in particular. Down nine towns of 1 . Extending the decline on the back of pressure on the property sector. Lets delve deeper. Staying with china. A debt swap that would help them stave off their firstever bond default. Lets bring in loretta chan. Does vankes attempt signal that its indeed liquidity trouble at all . Loretta thats true. Its a pretty significant stage where they have arrived where its public for the first time. In these debt discussions, previously we have reported on debt extension talks with some of these banks and insurance companies. Those are limited to the private debt realm. This time, the banks including the Chinese Government really trying to limit that impact of vanke in terms of a potential missed payment within the Public Private market to steer that away from the public market. Thats why you are seeing that attempt to swap this debt into private secured debt for banks. Haslinda put this in perspective for us. How important is china vanke to chinas real estate sector . We know that its backed by the government. Put this in perspective for us. Lorretta yeah. Vanke is a household name for every single chinese person. Its the sort of good student of chinas property sector. Over the past three years of the debt crisis, weve seen vanke was pretty much insolent from that. It managed its liabilities quite well. Its been able to sell projects. Sales were down 10 this year. Compared to some of the peers that saw 50 drops. Its really quite a safe name. I think in the credit market for bondholders, its been quite comfortable. Until in recent months when the broader property sector weakness has also started to affect names like vanke. It will be a key moment to test the kind of Government Support it has. The kind of shareholding structure the company has is really one of its major shareholders the governmentbacked entity. But it doesnt get involved in the kind of daytoday operations of the company. The company is to love private sector player. Still a private sector player. Haslinda Country Garden missing a bond payment for the first time. What we know . Lorretta well, that onshore default news for Country Garden is quite significant for the developer. Despite the fact that we know that the company has had liquidity trouble for months. Im sure market wise, its an restructuring talks already. I dont think it will significantly Impact Market sentiment. Its just another step towards the kind of debt restructuring we are seeing. It could also impact the speed of project delivery and how much the government has to step in again to help them, to potentially get some more bank funding to go through this crisis. Haslinda thank you so much for that. China shipbuilders are trading on the back of bidens subsidies being reviewed. They are under pressure. China sec has down 3. 3 . Play more ahead. Keep it here with us. This is bloomberg. Her uncles unhappy. Im sensing an underlying issue. Its tmobile. It started when we got him under a new plan. But then they unexpectedly unraveled their price lock guarantee. Which has made him, a bit. Unruly. You called yourself the uncarrier. You sing about price lock on those commercials. The price lock, the price lock. So, if you could change the price, change the name its not a lock, i know a lock. So how can we undo the damage . We could all unsubscribe and switch to xfinity. Their connection is unreal. And we could all unexperience this whole session. Okay, thats uncalled for. Haslinda welcome back. China markets just heading to lunch. Cse 300 steeped in gains and losses. Now in negative territory. Under pressure because of the property sector, vanke in particular. Trying to avoid a default. Also remember, Country Garden under pressure as well. Missing a payment. Hstech is one we are watching as well. Its in bull market. Searching about 4 overnight. You on yuan pretty much unchanged versus the usd. Lets take a look at the japanese market as it comes back from lunch. Quite an interesting day here in japan given those Wage Negotiations with toyota have concluded with toyota agreeing to fulfill all thats been demanded. Of course, this is one of the last puzzles for the boj to decide whether or not it will make a move in march. Base case is still april. We heard from a guest earlier on. But march is live. The nikkei 225 currently down seven tents of 1 . The topics in negative territory as well. Jpy inching higher versus the usd. Toyota back from trade, extending its losses to about 1. 2 . Lets stay with japan. Market moves with mliv strategist mark renfield. Its really about japan. This is significant. Mark you can see how serious people are taking it. Bank of america has change their forecast. They think march is the go to date for the bank of japan. Its all going to happen next week. Theres a couple of other people who have come in line with that. Something still going for april as you say. Weve come to the point where the wage numbers are coming in exactly as the bank of japan wanted, way above the Inflation Numbers. I had confirmation of that with the toyota numbers. Big run coming up at the end of the week. They are also looking something for something close to 7 . The government economy has come out and said that the end of deflation is pretty much there. They are ready to be clear of it. Its all coming together at the same time. Its no wonder that people think something could really happen next week. Haslinda is it enough though . Or does the boj still need to wait before deciding . Mark its probably not specifically now about data and surveys. Its more about whether they feel they would cause a big disruption to the fiscal yearend. You can see already theres been plenty of stories saying that some bank of japan people are leaning towards doing something in march. Some are holding back. But previously, always the fiscal year and is a big deal for Japanese Companies and banks. They may not be sure how the market will respond if they were to move before that. Its only a couple weeks before. Why not wait until april when its a little bit clearer . Or the alternative is to do it in steps. There have been stories saying that yield curve control is likely to go. They could exit that next week. It wouldnt cause a huge disruption but it would be a clear signal that they are about to do something else. Maybe do that first and then something else. Haslinda i imagine the fed is a consideration. We saw how cpi came in hotter than expected. That must be one of the considerations for the boj. Mark it helps them. We were discussing this in january. There was a lot of speculation that the bank of japan wanted to move early in the year to get ahead of the Federal Reserve. They didnt want to be raising rates as the same at the same time the Federal Reserve was cutting. Thats gone now. Thats why theres a lot of speculation. Didnt turn out to be the case. Again, it could be a consideration for them. If they think june is live for the Federal Reserve, they may want to get ahead of that. Haslinda just to be clear, the data was hotter than anticipated. Yet the s p closed at yet another record high. We are talking about 17 record highs for the year already. Make it make sense. Mark you have to take into account, what are the main drivers for the u. S. Equity market . A big part of the story is the ai narrative. The demand for products related to that. We even saw oracle, who is an oldschool tech company, even hes benefiting from demand for ai. They posted great results. That tells you its pretty widespread. It looks as though it has traction. If you are an investor who is driven by that, if you think thats the main reason for being in u. S. Stocks for the near term, Interest Rates dont matter to you. Whether the fed stays at 5 or drops by 25 basis points, these kind of companies have huge multiples and are making lots of money. 25 basis point is not relevant to your decision. The u. S. Economy is still doing very well. Jobs are very strong. Theres enough there for you to stay with those kind of companies and continue investing. Haslinda im quite certain there is a risk to all of that. Thank you. Now to india focus and its booming equity market. Some Foreign Companies are looking to cash out by pairing steaks in their indian businesses. British and American Tobacco to sell a part of its stake in itc and seven other firms have reduced holdings since june. For more, lets bring in our asia equity senior major reporter. Is this a signal . If you look, there are three takeaways. To positive, one negative. Market is maturing and observing all kind of selling. It also means the freethrow is rising. In line with the developed world. The second take away is, its becoming a revenue for Value Creation for Foreign Companies. They are selling stakes to fix problems. First comes selling off stakes. When it becomes a big avenue for Value Creation, then comes foreign listings. The negative take away is that even Foreign Companies are betting at this valuation. Who is buying india . Indians. That means the liquidity thats coming for investors has turned. Which adds evidence that there might be some bit of correction, some bit of profit taking. Haslinda you talked about how we are looking for value. Theres another area of interest. Puts up tory notes. What are we seeing their . Mark these are obscure, issued by some banks and foreign institutions. To people who dont want to invest in india. The market has grown substantially. I think it has seen a growth of about 50 over one year. Despite heightened regulations and scrutiny from the regulators. Just because they dont know who is the ultimate owner of these instruments. What we understand from our sources, banks have been making a case with the regulators to get the more time. They have started reallocating their exposures. They are trying to manage it. In the context of local savings in india coming to the market, its not that big of a worry. In 2007, india had curbed participatory notes. We need to remain a bit nimble and wary of this aspect as well. Haslinda all this coming at a time when the r. B. I. Is pretty much nervous about euphoria in the market. Some say that moves are coming as preemptive measures. How is the market looking at it . How will it impact sentiment . I would like to think its a preemptive measure. He sets standards globally around many things. Lately, theres been comparison between what china did in 2015 in terms of curbing financing margins. The risk is on the downside. If you look at all this in context of how it played out in china during 2014 and 2015, and indias record valuations. Haslinda we have to leave it there. Of course, inflation in india eased slightly in february with the Consumer Price index coming in at 5. 09 , lower than januarys 5. 1 cpi print but still above the r. B. I. S 4 target. Policymakers expected to remain cautious as inflation stays elevated. The r. B. I. Government said rate cuts wont be considered until inflation has settled durably around their goal. Of course, that goal of 4 . Heres a look at indian markets. Minutes away from the open. Take a look at where we are in terms of what futures are pointing to. They are in positive territory. Sense act since x up five tents of 1 . A check on itc in particular. Itc has a 3. 5 equity traded in a deal. Its the stock in focus. 3. 5 percent stake via block deals. We will keep you posted on further developments. Still to come, our exclusive interview with the love ponytail company. Keep it here with us. This is bloomberg. Haslinda welcome back to Bloomberg Markets asia. The focus comes back to singapore. It has seen passenger traffic surpassing precovid levels for the First Time Since the pinch and pick as Holiday Travel and highprofile events drew travelers into the lion city. For more on the influx of tourists, also boosting the retail sector, lets speak to a relatively new singaporebased fashion retailer thats been expanding since covid times. Joining us exclusively is the ceo. Good to have you with us. How is the business going postcovid . What are you seeing . Its going great. We are the largest direct consumer womenswear Brandon Southeast asia with over 20 scores across aipac. We ship to over 20 markets globally. Postcovid, i wouldnt say we survived but we actually thrive through the entire time. Haslinda why is that so . Dione we have an omelette channel presence. Over the last two to three years, weve grown 40 consistently year on year. Opening six to seven doors actually over the past couple years. Haslinda despite the great performance, you are rebranding, rethinking your strategy. Talk to us about the thinking around that. Dione we are new kid on the block. Weve been around in the market for 14 years. We have a core mission to uplift and inspire the asian woman globally. Is really time for us to grow up, to elevate ourselves a little bit, to modernize and freshen up the brand. One part of the rerounding rebranding not around our Asian Heritage and leaning into a new brand identity. On the others, we want to share gratitude as well. Taking a proud stance as a singapore brand which is where weve infused orchids as a feature across our stores globally. That is the genesis behind this. Its around, can we be the brand, the platform for women globally and provide really thoughtful clothing thats ready to live, not just readytowear . Haslinda what is your Competitive Edge . Theres lots of competition out here. Fighting against the bigger branch brands like zara and h m. As well as Global Brands with the various markets that you operate. What is your Competitive Edge . Dione the first thing is around rdna and design philosophy. Its all around thoughtfulness. Its historically a disempowering space. Womenswear is all about looking great and beautiful. Not so much about form, function, comfort. How do we can combine form and function with comfort and versatility, mileage . Thats the core of who we are. In terms of target audience as well, we are really clear in terms of our niche and focus, in terms of the audience. Someone in the 30s to 40s. Someone like you and me. Multifaceted, biz me. Not seeking trends. She looking for versatility. Mileage that takes her from day to night. Convenience. Haslinda lets talk about growth. Youve been talking about doubledigit growth. When it comes to Growth Markets in indonesia, malaysia, vietnam, talk to us about how you intend to grow in this market. Dione we see our growth in a couple of different segments. One is around a market like hong kong for example. Really could sing similarities to singapore in terms of trends. Weve been growing hong kong aggressively over the past couple of years. Across Southeast Asia as well, weve been doubling down. Our first brickandmortar store in the middle of this year. For us, very bullish. We see huge potential in these markets for us as a scala brand, its how you also find market the product for. So that you can really expand in a more scalable, efficient manner. Haslinda it is surprising that youre thinking about brickandmortar at a time when digital has become the thing. Why brickandmortar . Costs will go higher. Have trends changed postcovid . Dione yeah. Maybe, maybe not. Womenswear space. If we are in a different category, maybe a different approach. We are digital and then going offline which is unique and peculiar. In our space, we understand at the end of the day, trying is important. With textiles, fabrics. Its different. Different from what nai tool can give you. We see brickandmortar as a well of and way of expanding. When we think about the womenswear landscape, its a huge market. Ecommerce has been high. Brickandmortar and offline sales take a majority of the market. This is our way of acquiring new customers, expanding our community. Its a very relevant way of expanding. Today, is it costly . Maybe not. We can run it efficiently. Our stores have an average profit margin of just under 30 . Which is actually really healthy. Haslinda talk to us about supply chains. If i understand it correctly, most of your manufacturing is done in china. Dione yes. Haslinda are there plans to diversify . How are you looking at it . Dione a majority of our factories are in china. Weve been building longterm, decadelong relationships with our partners in china. On top of that, weve been working and diversifying. Diversification is important. Weve been working with factories across vietnam and indonesia. Over here, even when we talk about supply chain, i know esg is a hot topic. For us, its really around, how can we partner up with our factories and grow with them over time . Today, all of our core factories rps ei certified. Socially compliant. Theyve been audited officially as well and meet certain criterias. Haslinda you had a popup store in new york. Im wondering what your International Plans might be. Might you need to raise funds further . The last time was from primavera , 50 million. Is there a need to raise funds further for your International Expansion . Dione im glad you asked that. What we started seeing a couple years ago was that we dont just have a Good Community of women in asia. Theres a huge asian diaspora market in australia and the u. S. Thats why we expanded more into the u. S. Market. We started seeing ecommerce organic traction. Theres really a potential to cater to women there. There are few brands that are speaking to the asian female consumer. Do we need more Funding Investment . Its not necessary. The engine really works. We are able to expand through partnerships. Haslinda thank you so much. Come back again. Lets do a check on indian markets. Been trading over three minutes now. Lets do a check if they can sustain the gains theyve seen so mark so far. This market has seen a lot of foreign money as well. We are doing a check on the itc rising on the bot stake sale. Coming up, Bloomberg Markets asia. Global airlines big plans at the time. Travel is booming. Keep it with us. This is bloomberg. Haslinda boeings crisis of confidence is spreading to the airlines. United, delta, alaska are all saying that the playmaker troubles are bleeding into their businesses. The biggest problem is not receiving the aircraft they ordered for this year as boeing stows output. Lets bring in danny lee. Talk about ripple effect. Danny yeah. For boeing, they cannot produce the planes that they want at the moment. Thats of course following the midair accident involving alaska airlines. There are also supply chain delays. What we are hearing out of the biggest customers out of the u. S. , they are only going to receive 48 planes instead of 79. Thats a big mess when it comes to their planning for the year. Alaska airlines involved in that accident, they say that they cant really guide for capacity and growth for 2024 because of uncertainty of deliveries. United airlines, boeings biggest customer, they are also saying that they are telling boeing, you should stop building the maxton aircraft which is under production at the moment but has yet to be certified. Therefore, for them, their longterm planning, they are frustrated that they dont know when they will get this jet. Therefore, they want boeing to refocus its efforts elsewhere. Of course for united airlines, they are now looking at boeings biggest rival airbus to help them fill the gap with a potential shortage of aircraft, given the global shortfall of aircraft. The industry is chasing for it. Haslinda boeing has asian customers. Any impact on these airlines . Danny that does remain to be seen. At the moment, the extent and strength of boeings efforts in the asia region, they are not necessarily at a scale where they would be impacted. Weve asked these airlines over recent weeks, petition airlines are not necessarily signaling any concerns over delays of production of aircraft at the moment, particularly in this region. Haslinda and of course, linked to the airspace, we have vanke cathay out with results shortly. Danny we are expecting strong results. The first profit for them since 2019. First annual profit on a net basis. This would markets return from covid, covid being very destructive for the carrier. We are looking for a net income base of 8. 6 billion. On an operating level, could be as high as 15 billion. That would be a record by some margin at that. Haslinda thank you so much for that. Lets get you back to markets. Take a look how japan is doing. Wage negotiations by toyota. It has agreed to meet all the demands including a bonus. Toyota trending in positive territory, reversing this loss which we saw earlier today. Nippon steel up three tents of 1 . Of course, toyota and that negotiation, one of the last puzzles for the boj expectations. It may move in march. Some say the base case remains april. Yen trading at 147 point 38 versus the usd. Stronger versus the u. S. Currency on the back of those negotiations. Take a look at where we are in terms of the broader market. Asia swinging between gains and losses, weighed down by japan. China is a property play about vanke and how its trying to avert a default. Country garden also missing that payment. Take a look at where we are in terms of those particular benchmarks. China csi 300 index down three tents of 1 . Thats it from Bloomberg Markets asia. Daybreak middle east and africa is next. Keep it here with us. This is bloomberg. J. P. Morgan Wealth Management knows its easy to get lost in investment research. Get help with j. P morgan personal advisors. Hey, david ready to get started . Work with advisors who create a plan with you, and help you find the right investments. 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