and hong kong and 11:00 in tokyo. this is bloomberg markets. david: here in the hong kong, skate your top stories. stocks across the region, struggle with traction with another rba hike priced in as aussie inflation surges to a 32 year high. microsoft adding to the gloom, revenue growth at its cloud businesses slowing this quarter along with corporate software sales. morgan stanley out with a big call. they sayed is a decade of emerging markets and it has begun, as it shifts money out of the u.s. equities to boost its exposure. rishaad: we have, these markets, the ones opening, which are closing in a second. a bit of a lack risk sentiment when it comes to the major

benchmarks. the philippines, resolving tech issues, delays. sri lanka, out with its interest rate decision leaving their deposit and the lending rates the same at 14.5% and 15.5%. we're looking at treasuries. we have the yen up and the bank of highland. the new zealand ash new zealand has a new prime minister -- new zealand has a new prime minister. david: i will use that point as a jumping off point to what is happening in the bond markets. aussie, 7.5%. your other point, sri lanka is keeping rates unchanged. a rate decision coming out of thailand. equities priced up. volumes out there. a couple markets are shut. have a look at where we are. it's mainland china, hong kong, taiwan and vietnam, we should be the market coming alive this

hour. those four equity markets are shut today. have a look at your screens. now, it takes us into the inflation numbers coming through, which came through earlier on. we have one more coming out which is singapore. market movies. new zealand came in at 7.2%, higher than estimates. australia came in with some variance. there we go. we're looking at 7.3%, 7.8% and singapore which is coming up there. might we get a positive or surprise in singapore? we will see. rishaad: absolutely. i did say it is going to be the market moving. we're looking at tech. let's have a look at what is going on with the google lawsuit with the u.s. justice department and eight other states, suing google for the breakup of the ad to technology business, alleged

to illegal monopolization of the digital advertising market. google is coming back and saying the lawsuit attempts to pick winners and losers in this highly competitive tech space. not something the doj looks at it. microsoft doing so well. then, it was, this optimistic earnings report, then we have a call. then it was the slowdown in revenue growth. as the cloud computing business turned the optimistic earnings report turned into pessimism, as software sales report. we've all of this explaining why microsoft is in essence firing some 10,000 workers last week. saying that in the current period, you will see sales slowing down by 45 points from the end of the fiscal second quarter. gains were in the mid 30's. you can get a sense of where we are in terms of the digital advertising group we have for google. let's have a look at microsoft

earnings. when we talk about optimism becoming pessimism, after hours it declines from that 1%. the stock was up 4%, thereabouts. that was encouragement. there was signs of resilience and other parts of business but not so for, add yield sales -- azure sales. that stock, down. david: pulling the nasdaq on track with it. clouds outlook. unintended? i don't know. let's talk about the other big story. a glitch on the nyse. some trades were declared null and void after the kerfuffle cost hundreds of security is to trade without the opening price. our markets reporter is here to talk us through what happened and what so far has the exchange told participants. annabelle: at this stage it is trying to determine what is --

what nyse is on the hook for. essentially, when you have the stock exchange at the nyse, everyone puts their orders for how much they want to buy or sell. that is what the opening price is determined from. what appears to have happen is many of the orders that would go into the book, did not actually enter the system. we don't know why. if you bring up the terminal chart you can see really those wild swings we had a ross the wording -- wild swings we had across the boarding companies. at&t is another one. the huge spark we had in either direction. it was low-volume but higher volatility for these big name stocks. that's exactly what happened. what investors are trying to figure out, what was the opening price? given that the limit came into play soon after. there was the trading hold for five minutes. then they returned to the market, with a more expected price, that reflected the close of the day prior. david: shock to some traders.

they had their drop drop. do we know what caused the glitch? annabelle: that part is unclear. they have not been forthcoming. there china sort the details -- trying to sort the details. it was a system error. we understand that nyse has gone through a technical upgrade. that appeared to be working well. perhaps there has been some sort of software glitch again. they're trying to figure out what happened. as for cyberattacks, it is something that comes into it sometimes but it appears at least so far, that there are no cyberattacks in question. rishaad: that was exactly what i was going ask. it does seem to have the hallmarks of some hack, some sort of cyber security breach at least? annabelle: well, it's also something that traders were wary of, given how slow the nyse had been to respond to what was going on. this happen in the open auction.

we did not get any response until around 10:00 a.m., that was when the first statement came out. we're getting details coming through. that is where you go to given we have seen hacks on exchanges, around the world. it could be something that would be speculation. but it does seem like so far, it was a system error. presumably there was some system holes. they may have been kept in place longer than they should have. really, what investors and traders are doing are sorting through the day's action in figuring out what happened. that is what nyese will be sorting out. if there any cost involved as well. rishaad: thanks, for that. let's get our next guest, saying the markets are wrong to assume this year will be the opposite of 2022. let's bring in our global strategist. give us a sense of why you think that. why you think, because everyone

a short, you've gotta think the opposite -- is a short you've got to think the opposite. >> put it simply, 2022 is very gloomy. across the board. relative to how gloomy everything looks for 2023 at the end of 2020 things are looking up. you can justify some of the current market positioning to that extent. the -- fundamentally, how we turn the corner? has the year of the robert been different -- rabbit been that different from the year of the tiger? is january first different from december 31? the answer is no. alsl -- all the same problems we had last year are carrying across. one or two of them have not been a severe, but the fact that they are not, actually creates new problems that we don't want to recognize. the markets pricing for perfection. we do not ever get perfection. the result will be disappointing. rishaad: absolutely.

is preparing for 25 basis points. that's a done deal. what's your take on what the fed is doing overall? >> they widely variant views on it. many people think they're making a policy by continue to hike when you see goods inflation only 2.1%. then he flipped that, look at core service inflation which is going up like a rocket. maybe that. will come down with a lag. you do not talk about easing until you are already seeing that on the way down, which would be at the end of this year at the earliest. there is a view out there. i'm sympathetic to it even if you cannot prove it. we all know, that in reality the fed likes to target certain asset prices even though it is not their mandate. that is the upside. we know that the stockmarkets come off aggressively the fed reaction was to -- shift. what if they're are happier to see lower assets?

if you are to d globalizing world, -- deglobalizing world, you've got to try to compress services inflation more. the wealth affected get from asset prices pushes up services inflation. it could be that even if they will not admit it, the fed will be happier to see higher yields and lower stocks and have them stay there for some time. david: michael,, nice to see you, still bearish. let nothing change. [laughter] well, michael here's my question, was due respect. if i listen to you i would've lost a lot of money. >> when? david: well, going into this year for example. this china story. the markets are also betting right around that the fed was going to take their foot off the gas. if i say i took this view three

or four weeks back i would've left 15% on the table. >> absolutely. i do not deny that. i do not manage money. i'm not giving money advice. i would not be recommending people to trade with the ideas i put the word. if you're going to do that, which is what i do, you can still see opportunities. i would say it is a good opportunity to start thinking about leading the short rather than the long side of it. just reiterate what you say is correct, i was not giving you advice. i don't know what you did do with their money. i hope you did make 50%. david: i would not be here if i needed money. i would be somewhere else. i imagine. it seems to be that inflation is here to stay.

everyone talks about commodity prices. if you're in the corner office or the market, how should i be thinking about input costs these next what he four months? >> that is a very good question. that is important for the financial markets and the economy. it's push in volume. if we overdo it on rates, which there is a view that we are doing, the fear is that you start to see both the base effects from 2022 and negative demand shocks, see a real collapse in commodity prices over 2023. that is a genuine valued argument. on the other hand, you've got the risk of supply-side structure. you've got this to globalizing -- deglobalizing backdrop which we are not sure what supply chains will look like on the ground. and the need to replicate or duplicate to build resiliency which is always expensive. any insurance policy is. you've got china reopening,

which is a question. we do not know how it will reopen. and the difference between the cyclical uptick with reopening and the structural shift in terms of the policy framework. that leans towards upside pressures. then we could potentially see a further x -- escalation in a few months which could worry the agriculture sector. it's a mixed picture. i'm convinced it is all downside for commodity prices. i can see pockets of upside. david: i was going ask you about that. you guys that rabobank have a large presence, a lot of your clients are in softs. what conversations are you having with your clients. give us a sense of what the roads look like. >> it is a nuanced picture. the macro backdrop, as we described, as extremely uncertain. just as markets are not quite clear the direction, neither is

that particular sector. you've got climate factors which are extremely variable. rain is falling what should not. you've got weather patterns which are unpredictable. look at california, coming from drought to flood. lots of things are shifting. when he put it together, people can see, on a market by market basis, you cannot put all softs together, the same we put hearts together, that you can make a bull or bear case. yet the stay on your toes rather than assuming there is a happy narrative for the year. or and a clear narrative in one direction or the other. if it was really clear across all commodities, one direction or the other it is very easy to trade and very easy to play. it's uncertainty and volatility that is the trouble. david: stay with us, lots want to talk about. with michael every from rabobank . just alert you guys from delayed gratification, that is how i will describe it. philippines market has been

delayed for about 48 minutes or so, it is now lined. this technical issue that caused the delay has been resolved. you can see we are so slightly higher, 10% on the benchmark in manila. rishaad: yup. we'll keep tabs on that. let's have a look at what is happening in first word news. u.s. and germany poised to announce they will provide their main at all tasty ukraine. the biden administration is announcing wednesday to offer ukraine you -- ukrainian forces the tank to hope journey will send 14 takes. it overcomes a disagreement that threatened to fracture allied unity and offers kyiv a weapon to counter russia. pakistan's prime minister says he is confident of returning to power this year, speaking to bloomberg, he says he expects to win a majority when elections are held, likely after august. the former leader is touting a

plan to shore up in economy and blocking a continued rule for the imf to stave off the risk of default. >> we have no choice. pakistan has $4 billion of reserves left. we already defaulted on various areas. we'll have to make policies like never before in our country. we feel that the crisis, which we are now facing and probably by the time this will have become much worse, we fear that situation. we'll have to take radical steps. rishaad: elon musk has told the jury he was confident he could have pulled his 2018 proposal to take tesla private. in his third day on the witness stand, in his security france trial, must defend his tweets saying he had funded -- funding secured. musk said it was not a problem for them to raise money. and every financing round yaz

was subscribed. opec-plus expecting an advisory committee to recommend keeping oil production levels unchanged while they meet next week. china reopening and the european union sanctioning member country russia, analysts predict that opec-plus will only start to reverse and supply curves about to main barrels a day in the second half of -- 2 million barrels a day in the second half of this year. david: ahead on the show, we hear from the world bank and the president, who talks about china. is china delaying a restructuring? we'll get the ins and outs as far as they could -- they are concerned. mk's global heads -- emkay's global head talks to us. what the government spending plans maybe? what that may mean for the economy and also what that means for gender quality? lots of good conversations ahead. you're watching bloomberg. ♪

introducing the new sleep number climate360 smart bed. the only smart bed in the world that actively cools, warms and effortlessly responds to both of you. our smart sleepers get 28 minutes more restful sleep per night. proven quality sleep. only from sleep number.

david: welcome back. you're watching bloomberg markets asia. we are back with michael every, global strategist with rabobank. six weeks from now we will be getting the national people's congress in china and their policy priorities for the year. how should we be thinking about china this year? >> cyclically, things are looking better. covid zero open the economy up again. once you get past the initial problem of being sick, there is upside. that is going to be seen in 2023. at the same time, we are likely to see some short-term stimulus. some good old-fashioned state back variety. one that front -- on that front we will get short-term good news.

the big issue is what happens for 2024, structurally, where is china going to go from here? all the discussions we were having over the past few years about what common prosperity does and does not mean, what the u.s./china relationship looks like? none of this has gone away. i would be really, genuinely shocked if at the congress in six weeks we get some kind of revolutionary shift where china says this is it, we are embracing market forces. i don't see that happening. rishaad: michael, you talk extensively about the year of the rabbit in your notes, why? >> well, it was a nice calendar point to bring up. it's interesting. the year of the tiger from the chinese zodiac perspective is associated with surprises and aggression and competition. whereas the year of the rabbit

is associated with peace and stability and fertility. which is pretty positive, given the chinese population last year. it seemed like an opportune moment to stress it will be lovely if we can move into the year of the rabbit from the bureau of the tiger. -- year of the tiger. it's does a shift of one calendar day to the other. david: final thoughts from you. let's and this on a positive note. anything your bullish on? >> lots of things. for every downside there's an upside. i see a world full of opportunity. i think it is one where we need to read the rooms carefully not go for nice, easy means like 2023. is not 2022. do your homework. there is upside if you do. rishaad: well, everyone should do their homework. michael every is the global strategist at rabobank. we've got a lot more coming up, including a look at what is going on in the market and beyond. this is bloomberg.

♪

rishaad: we are looking at the nikkei up by .1%. seeing the deflation, to the pessimism surrounding the asx. we'll come to the manila market looking at the main constituents after the delayed open. let's check in with the latest business flash headlines. microsoft swinging losses in the late session after seeing revenue growth in the cloud computing business, by -- decelerating by four percentage points. azure has been making the biggest driver in growth with a jump in sales last quarter. microsoft warning of a slowdown in consumer sales for the rest

of the fiscal year. texas instruments suffering its first quarterly sales decline since 2020. the chief executive says the results reflect weaker demand in all markets with an exception of automotive's. the chipmaker giving a temperance forecast with a wide range -- tepid forecast with a wide range, saying it is uncertain how the industry will remain after a slowdown. after the 2023 forecast mr. the and out -- missed the analyst estimates, the industrial bellwether announcing plans to cut to an have thousand manufacturing jobs. the chief executive told the earnings goal, it not satisfied with its progress or performance. david: let's have a look at some pockets of the equity market in manila. first and foremost, the delayed open, the technical glitch has been addressed. we're looking at some of the developers and also the gaming companies on the back of the report.

lawmakers in manila have renewed the called the band offer gaming operations which benefited some of the property developers,. years back. the other market is australia. backs, bonds, currency, very hot inflation reports. backs are bid. yields are pushing higher. we have cva, talking about how the rba and there class for march and april will depend on the data coming up. watch for that very closely. we're walking -- talking what morgan stanley calls onems. this is bloomberg. ♪ it's official, america. xfinity mobile is the fastest mobile service. and gives you unmatched savings with the best price for two lines of unlimited. only $30 a line per month. that means you could save hundreds a year over t-mobile, at&t and verizon. the fastest mobile service and major savings?

can't argue with the facts. no wonder xfinity mobile is one of the fastest growing mobile services, now with over 5 million customers and counting. get in on the savings and switch today. - [announcer] imagine having fuller, thicker, more voluminous hair instantly. all it takes is just one session at hairclub. introducing xtrands. xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. they're personalized to match your own natural hair color

and texture, so they'll blend right in for a natural, effortless look. call in the next five minutes and when you buy 500 strands, you get 500 strands free. call right now. (upbeat music) rishaad: in tokyo. nikkei to 25, a lunch break in

under a minute. positivity, a fairly different day. much of the region is on holiday. the likes of hong kong, taiwan and mainland china off the lunar new year break. we've got the market looking at just a slight gain. perhaps making the full recovery from the boj shock yield pivot. you can see that taking place. also against the backdrop where the whole of the asia indexes up by .3%. broader topic, same sort of gains. the yen stable at 130. we have the government, at 8.6. let's look at the yield, the jgb, 4.1%, nearly 4.2%. let's have a look at the first word news. the u.s. justice department as well as eight states are suing google.

they want to break up the added technology business, they accuse the giant of illegally monopolizing the digital ad market claiming it hurts clients as well as users. in a statement to google, says the legal action will show legal action and raise advertising fees. the the new york stock exchange says some trades will be declared nolan void after a glitch caused wild swings and trading halts in hundreds of stocks. the system has affected more than 250 stocks timbales -- symbols in opening auction price. some of the biggest u.s. companies including mcdonald's and wells fargo were affected. a deadline was set for fresh elections in peru, hoping to calm the political crisis that left more than 50 people dead and disrupted tourism, mining and agriculture. six weeks of violent turmoil began when the president was impeached. protesters are calling for interim president -- the interim

president and the conservative controlled congress to be replaced. >> resignation in that elections. what will they ask for? they only want to generate chaos and and anarchy in the country. this chaos and anarchy they win with illegal acts such as drug trafficking, illegal mining and smuggling. rishaad: the film everything everywhere all at once leading the oscar race with 11 nominations. the movie from the independent studio a 24 is up for best picture and best directors and michelle yeoh won a golden globe and has received the nomination for best actress. the awards program will air in march. that's look at your first word headlines. david: right. can't wait to see that one. we're talking ems next. we'll show you graphic.

give or take 30 seconds from now. what you're looking at on your screen is the relative valuation of emerging markets. this is the msci gauge relative to u.s. equities. what you're looking at is a cheap market. there has been some catch-up, or at least a closing in the gap because of the reopening story in china, which literally took place halloween day, police the market bottoming on -- at least the market bottoming on halloween. this may go into the next conversation at morgan stanley things this is the place to be over the next 10 years. rishaad: absolutely. the investment management saying that, suggesting stocks in the emerging markets are set to be this decades winners. that is what the prediction is here. we are looking at this, adding to investors who are souring on the u.s. in favor of other parts of the world. our reporters with us to give us a scoop. what is happening?

>> the main reason morgan stanley is a reiterating what everyone else has been saying, money is moving out of the u.s. and into ems largely macro. a weakening dollar has been accompanied by china's reopening. we no china came late to the reopening -- we know china came late to the reopening party. it's the latest join. these two tailwinds are making emerging markets and in general non-us assets more attractive for investors. this is the macro reason. the technical side, if you look at the positioning, the currencies, even the valuations, it's cheap. there is merit, away from the u.s. which is looking at a recession. to a region where none of the countries are looking at a recession. even in terms of bottom factory removes. if you look at the earnings for asia ems, they have started to outperform globally.

this future was missing from china -- feature was missing from the global scene from china, since before october. as china's reopening cayman, started stabilizing the outlook for a variety of assets linked to china. china being the anchor for china is leading the earnings estimates. so, the u.s. is not offering any of these right now. they are looking for a soft landing scenario. asia ems in general are offered a lot of this. rishaad: how much has the -- has china contributed to this decision and others to start favoring the emerging markets space? >> china's reopening has contributed immensely. it began with the dollar speak in september. the bloomberg dollar index is down 7%. china reopening has the power to decouple the dependency issue --

asia ems. even if global growth sees a soft landing or recession scenario -- a recessions -- a recession scenario, since china's entering late, to weather downturn in the u.s. markets. china contributed immensely. if you look at morgan stanley, there talking about being market rate on china. rishaad: india was last year's darling. it did well. it was one of the few places where the major benchmarks they saw again. that has not been seen the same as china. all the money that went into china would have got into india. has the money been reallocated towards china as opposed to where was before? >> terms of global allocation,

yes, it is going towards china. if you look at the bank of america survey, in terms of asia location, india commands respect. if you look at the bottom of estimates, india gives you the best earnings growth this year and probably the year after. in that context, if you plot the valuations related to growth, in you will not look expensive -- india will not look expensive. rishaad: it is traditionally an expensive market. >> exactly. it's expensive, for a reason. it offers better earnings growth. that story is somewhat expected to continue. china would rise. but india is a structural portion. rishaad: thank you very much indeed. asia equities reporter. let's talk about neighboring pakistan.

the former prime minister kahn, saying he is confident he can get his old job back later this year. he says his government will work with the international monetary fund to prevent an economic collapse. >> we have no choice now. pakistan has $4 billion reserved . we're defaulting on various areas. we feel that the crisis, which we are now facing and probably by the time this will have become much worse, we fear that situation. we will have to take radical steps. david: that was the former prime minister of pakistan, khan. is nation, one of the many -- his nation, one of many of the emerging markets understrength. the world bank's rising level of depth have become a major hurdle

to economic developments. we spoke to the president of the world bank. he said he is working with the imf to help the most vulnerable countries get by. have a look. >> met there are many of them facing high risk of debt distress, or are in debt distress. there is a process that goes on both between the world bank and the imf, also through the g20. we're trying to strengthen that process to make it work. i was was -- was pleased to see, secretary yellen in africa this week really focusing attention on the urgency of moving forward on debt restructuring. i was in china in december with the imf managing director, we met and we had important meetings with china xm bank and development bank. those are two of the world's largest creditors on how to push forward with the process, when a

country hits the wall in terms of debt sustainability. there has to be a way to work through it and get that moving forward. for example, in zambia, where there is a lot of focus right now. >> do you think china's is being as constructive as it could be when it comes to restructuring countries like zambia? is this a source of frustration for you? >> it is frustrating that creditors have not gone together and really made progress on restructuring. zambia has been added for two years. -- at it for two years. it's important to make progress. they may do it over the next couple of months. china's asking lots of questions in the creditors committees. that causes delays. that strings out the process. it's important for them to be focused on getting to -- them to

be focused to get to a debt restructuring to where the burden can be lightened. for zambia, this is a country that has gone through a lot of its own internal improvements. and it's a country that is singled out as needing to move forward with a reduced debt burden, so there can be new investment into the country. that's what is important right now. they need to take steps in the next few weeks in order to unlock that potential. david: that was the president of the world bank. speaking with our colleague earlier on shows in daybreak asia. just ahead, as we look ahead, a couple of days, six days, the lead economist tells us why some women are being left behind, despite the government spending. we'll get to the numbers and maybe some takeaways. this is bloomberg. ♪

thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh

rishaad: we are looking at southeast asian markets. we have singapore sti, coming after a holiday, says 1:00,

looking at 6.6% as in terms of inflation. we're looking at a manila market recovery after having the delayed opening. that's not including what we will be seeing when the time -- time market opens in -- thai market opening in a few minutes. of course, it's been up for the fourth time this week. investors looking for an increase, which will sure of the currency. we're looking to the india open an hour away, said to unveiled the countries annual budget. our next guest says more money should be allocated to the rural employment guarantee act among other measures which are designed to address the inequality that is only worsening during the pandemic, with madhavi arora. thank you for joining us.

give us a sense of what you would like to see. give us what the financial and market, if you will, an economic imperative here is given, that women have done worse during the pandemic than when -- men. >> i think gender budgets have come to be recognized as an important tool. of course, women should have access to the same benefits as men. india has issued since 2005. we have seen a decrease in the last 17 years. allocation is concerned. that is it. there's no denying the fact that women continue to form india's untapped potential. wen yu to ensure there is a higher allocation -- we needed to ensure that there is higher allocation to women in general. but we saw was a disappointing budget. we saw that allocation reduced

from what we saw in the pre-pandemic years. we're watching out for the allocation this time around, especially because women contribute to large -- to a large portion of the allocation. we want to see how much relief they provide to women in the sector. that has struggled a lot, post-pandemic. the gender mainstream with regard to sectors like industrials need to be seen, as part of it -- part of job creation. rishaad: a lot of this is taking place in a structural sense. you can have tax incentives. women are also over -- overrepresented in the informal economy in india. how do you address that? >> clearly, as he said, if i see the numbers in this point of

time, the portion of women have fallen to less than 10% to the pre-pandemic level of 13%. women labor has increased, what you're referring to as well. the size has reduced. the best way for them to improve women labor forces to increase allocation, that is one segment which has struggled tremendously post-pandemic. it also has a high women participation. i think allocation to these are important. i would watch out for allocation in education sectors. we are seeing the policymakers increasing their allocation over the years. across, and needs to be increased as well. -- it needs to be increased as well.

allocation to increase women safety in general. david: to your point there seems to be a longer-term story and a sustained effort is needed. if you can attach an annualized rate, a quantum for example, on how much the government needs to allocate over the next decade. how much does that need to be in your view? >> if i look at the numbers, unfortunately, at this point, it continues to remain less than 5%, what the government spends, less than gdp. last year's budget, the allocation decreased to 4.3%, to pre-pandemic levels of 4.5%. i think i would watch this level to increase to at least 1.1% gdp which will take us to 6% of what the government spends in

january. -- general. to make sure we're looking at a more diverse growth story. david: is there a reason why that number is not the ideal number you're saying. i'm trying to get to what is causing the allocation to be small or relatively small. is it the pushback against this or other things, that need priority too? >> the policy constraints are. . type -- tight. let's not take that away. my senses the government is aware of the fact that if they want to look at a more inclusive india in the next decade, there is no denying that the rate of females has to go up. it was probably not by choice. i'm glad you have raised this issue as well. i'm hoping this time around,

they would reallocate the sectors. they have been doing it. but i would like it if they increased it in gender mainstreaming. like infrastructure. i think it is not by choice. but, it's high time that we also highlight this to them. females have seen disproportionate loss in jobs. they need to be given much higher allocation than in the past. as i mentioned, last year's budget saw allocation come back from the pre-pandemic years. the policy priorities at that point had moved towards making a more general development or towards higher subsidies. india had to bear higher subsidies to support the food level. i'm hoping this time around, they would raise the pre-pandemic level over the years and increase the allocation.

which is what the case was the last 10 years or so. rishaad: of course we have the prospect of india becoming the world's largest country population. perhaps sooner. given the shrinkage in the chinese population and there over accounting of about 100 million. does that change the game at all? does that put more weight on the shoulders of the people who prepare for the budget? >> one is also aware that there's going to be a shift in the asian power game. india of course is aware. that is one reason why policymakers have been increasing allocations to the manufacturing sector, the kind of support they have given. it will also increase this time around. as well. policymakers are aware that china will be playing out next

year, the next couple of years. india has the top that shrinking. are think that is a no-brainer -- of that i thing is a no-brainer for the pulsing makers. they need to increase allocation in the public sector. india will be able to tap the manufacturing, that we still have at this point. david: in madhavi arora --madhavi arora thank you so much, she's the lead economist at emkay global financial services. ♪ ♪ prizefighter... ...meets trailblazer. ♪ ♪ classic meets modern. ♪

at morgan stanley, we may seem like a contradiction...and we are. ♪ ♪ at 87 years old, we still see the world with the wonder of new eyes, ♪ helping you discover untapped possibilities ♪ and relentlessly working with you to make them real. ♪ partnering to unlock new ideas, ♪ to create new legacies, ♪ to research, innovate, collaborate, ♪ and build the way to transform a company, industry, economy, generation. ♪ because grit and vision working in lockstep puts you on the path to your full potential.

♪ david: a check of your latest business flash headlines. johnson & johnson has forecast a stronger earnings for 2023, than analysts were expecting. they promising a momentum boost, with more product launches. they are pointing to new drugs unless impacts from china's recent covid surge and of potentially favorable effect from currency exchanges later on in the year. rupert and locklin murdoch are abandoning their plans to reunite thereto media companies, fox news court. some news corp. investors oppose the merger saying it undervalued the company's asset. the deal announced was widely

seen as a way for murdoch to cement his control over the media empire of the family. very quickly, binance has acknowledged it has cap some user funds stored with its own reserves. in exchange -- an exchange wallet held reserves for more than the 94 coins in binance issues along with customer assets. when question by bloomberg news that binance issued a statement, saying collateral assets were removed from the wallet into the air. rishaad: just looking at the picture for asia equities. msci asia pacific up .3%. european and union -- u.s. equity features down as well.

i screwed up. mhm. i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too. yeah! work it girl! woo! i want to hear you say it out loud. well, i could switch us to xfinity. those smiles. that's why i do what i do. that and the paycheck.

rishaad: almost 11:00 in the morning in singapore and hong kong. this is bloomberg markets. let's from look at our top stories. asia's looking for traction. microsoft down beat revenue forecast adding to the risk aversion out there for investors. money market is pricing in. an interest rate hike for the next fed meeting. that as the country's inflation surged to of 32 year high. plus we're looking at economists saying indian bond yields on the way down, even with government borrowing set to soar in that next week's pre-election budget. this is what it look like for equities in this part of the world. just seeing gains in singapore, above the cpi read. two hours from now, cpi price to be 6.6% according to the economists we have talked to. we have the bank of thailand, a decision on rates to bot coming

into the fray. 3:00 this afternoon. seeing inflation there. they are thought to be not quite under control. we could be seeing again or an increase in the cost of borrowing from the central bank in bangkok. tokyo, it's in session which has come online. we're looking at the set, the stock exchange of thailand and bangkok the type barth having its first increase in a few days. it's seeing a bit of a resurgence. we did see a lot of the tourism revenues ploy get to the country's coffers and helping to shore up the currencies. we seed interest rate increase shore up the martha's well. that is a look at markets. let's have a look at this in

more detail as we get over to bloomberg's -- that is what is happening. with the set. unchanged. because the after the initial gains, we are seeing it on the way down with the dollar gaining .3%. and this is as people did position themselves earlier in anticipation for the interest rate hike. looking like we could see the nifty under a bit of pressure. the rupee losing ground, with the american counterpart up .4%. more cranfield is with us now. -- mark cranfield is with us now. given that markets are not closed, were talking about taiwan, china, hong kong. i suppose we see more volatility. perhaps cleaner volumes too. >> yes. that is playing into it. a lot of eyes on the u.s. open situation. that warning from microsoft that

sales, from part of the business are not going to be so good the month ahead -- the months ahead. that would've had a good pick -- that would've had a good impact. they would've probably had a wider impact. we can still see the mess that futures are still lower. we could be moving into that kind of situation where weakness and equities pushes people into defensive areas like bonds, especially for treasuries. it they end up having a good day today in the u.s.. microsoft is one of the early people to announced. we have tesla, amazon, those companies still need to announced the results. there is a lot more to come from that sector. there is not a great start. there is a lot of uncertainty, about where equity markets will go in the next few days. rishaad: we had that surprising cpi number out of australia as well. how does that affect what has happened with the reserve bank sinking.

it seems as though the bond market has been quite -- has not been quite as receptive to inflation. towards the machinations of the treasury curve. >> if you look at what has happened over the last six months, there has been, a few australian data that has been strongt. -- strong. the rba has raised interest. aussie bond yields are down to around six months lows -- six-month lows. it's the treasury yields that matter more to australia. they tend to drive everything in the g10 spaces. our old bloomberg economics people are suggesting that when the rba meets next week they will hike interest rates again. that will likely be the last one in the series. they have been hinting for a while that they think on top of the situation, when they look back at it, the inflation number could be an outlier, there are

some special factors that say it will be reversed. they're only seeing weakness and aussie bonds it will probably not last too long. the currencies very strong as well. you've got the china reopening story which has gained support. in a way that will push sort term -- short-term yields. the more downward pressure you get in short-term yields. all in all. whatever happens today may be forgotten, especially if the treasury markets stay strong in the u.s. rishaad: mark. hong kong reopens has been great stuff. it has been a great start of the or for other markets. when he hit the ground running, as it were, you only fall over. >> well, what has changed as far as greater china's concerned, people are starting to look at the good news rather than the bad news. clearly, this time last year,

all people focused on was what was going wrong for china, especially for hong kong. you see a change in the narrative the past couple of months, people are more optimistic with the china reopening story. changes to the drop in covid policies as well. movement is starting to take place. china's stories moving again. expect a lot more people to come to hong kong. the government is doing a lot more to boost the business sector. you are seeing more conferences taking place. and people are going back to the city. it looks as though investors are looking for the outside rather than the downside. we need a big shocks to put people back into the kind of defensive move they had last year. for now, they are willing to believe that the pictures better. the worst has been seen and things will get better in hong kong from here. rishaad: good stuff. mark cranfield there. we have berlin and washington coming together for, well, to

bolster kyiv in some senses. let's get to vonnie quinn. vonnie: the u.s. and germany poised to announce they will divide their battle tanks to ukraine. sources says the biden administration is expect to announce on wednesday. it will offer ukrainian forces the m1 abrams tank. we're told germany will. send a 14 tanks. it overcomes the disagreement that threatened to fracture allied unity and offer kyiv a new weapon to counter russia. australian inflation accelerated into the fastest pace in 32 years in the final three months of 2022, prompting money markets to price and an interest rate hike at next meeting rba -- at the next rba meeting. it exceeded economists 7.6% testament. the treasurer says it is too early to say if price pressures have peaked. >> this is high inflation by

historical standards. there's no use pretending otherwise. it is unacceptably high. this is likely the peak in inflation that we -- we will not know for sure until we get the numbers for this march quarter, we are in now. vonnie: the new york stock exchange says some trades will be declared no and void after glitch caused while the swings and trading halts in hundreds of stocks. a system issue affected more than 250 stock symbols as trading started in tuesday session without an opening auction price. some of the biggest u.s. firms including wells fargo and mcdonald's were affected. elon musk has told the jury he was confident he could have pulled his 2018 proposal to take tesla private. in is third day on the witness stand in his securities fraud trial -- trial, he defended his tweet, saying he had funding secured. musk said it is not a problem for him to raise money. and every refinancing round has

been oversubscribed. global news 24 hours a day on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries around the world. i'm vonnie quinn. this is bloomberg. rishaad: thanks. still the cup, we are looking to the india 2023 budget. the government before the elections are held in 2024. look at that dbs group, the chief investment officer is telling us how a tried and tested strategy can help navigate volatile markets. ♪

when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh rishaad: that is a look at the southeast asian markets.

we have the index in the upside. cpi read, later out of singapore . we have not mention we are looking forward to the bank of thailand's interest rate decision were rates are expected to be raised here. looking at the manila market. helping things along their. the, .3% after a glitch has delayed the start of the session. le'ts -- let's take a look at the markets, let's talk to our next guest says there is an attractive risk reward in the 60/40 portfolio. dbs scoop, cio, joins us from singapore. thank you for joining us. the 60/40 is traditionally 60% equities 40% bonds. what is 60% bonds, 40% equities? >> so, 60/40 is for balance risk investors. for more conservative portfolios would be the 30 equity 70

portfolios. 60/40's for balance. rishaad: absolutely. 60% equities you're talking about 40% bonds. it comes after a year. if you decided to take this approach this time last year you would be crushed, given it is all most unheard of to see both bonds and equities going down in tandem. >> yeah. in the last 100 years, rarely have we seen a situation where both fall sharply and in tandem. what we are having today is a market that is giving very attractive yields. the bond market, we're are looking at yield levels, trading at -- above the 10 year historic need. the 40% part of the 60/40, if one is locking with the investment grade, with same

credits, you are getting a great anchor for the entire portfolio. the remaining 60 would be in bonds. i would also add some risk diversifying investments. gold. which is a non-correlation to the traditional market. it worked well. it was down 16%. you need to have that kind of construct to make that resilient. rishaad: when you look at this, what part of the equity markets you want to be? i will ask you about the bond market and a second. what are you looking at, are you looking for yield, value versus growth, what are your investment criteria? >> if you look at the entire public construct, one side are generators. it would be credit,

investment-grade, there is also the dividend yield stocks. really the asia -- it is the ground for dividend stocks. singapore banks. on the other side of the portfolio we call them the growth business. you want to be in sectors and companies, equities that ride on secular -- cyclical growth trends. the world economy becoming a digital economy. who are the winners of that? the other thing would be aging. medi-cal -- health care. rishaad: when you look at this, you just touched upon credit. if you want to be on 40% bonds, are you looking at iag, are looking at the customer between ign yield. if so what kind of industry

groups you look at? >> currently we are favorable to ig, given where the spreads are today, we are not far from the spread between ign treasuries. we are not far from what you see in past recessions. we are in the high-yield. we are not close yet. it still longways. we think the risk rewards is better and ig. positioning between the three to five yield majority, with think that is a great anchor, giving you cash flows until the majority of these bonds. rishaad: also, it depends on your view of the u.s. economy, whether the fed stops raising rates. and whether we get a recession or market slowdown. that will be key. >> we think the introductory for

rates going up is going to slow down. that is also being guided by the fed. really, we don't think there will be a prolonged recession. the data does not suggest that. the fact that equities, the high-growth companies in technology, we think it is a sweet spot to be reengaged in. rishaad: of course, it is one which is likely to be global. how much will equities in this part of the world be represented within your portfolio? >> the way we look at the world is we look at the entire west. where do we find the best generators? credit or stocks? where we find the best growth stocks?

that is how we look at the world. and we continue to advocate for clients in private wealth to diversify. lots of them are asian clients, who make lots of money in their home turf. for tradable liquid assets, it's the opportunity set. rishaad: absolutely. the world is an opportunity set. you mentioned gold. what about crypto? do you have any explosion thereto -- and their two -- of their too? >> it is a speculative asset class. i enjoy participating in it. but we are telling them is it's not part of the core construct. it's private assets in hedge funds. they're not correlated to general market direction.

it as resilience. -- adds resilience. rishaad: we could talk a bit about tech. it had a horrible time of it in 2022. we saw microsoft out with their cloud computing site. one of the first tech company to come out with the earnings the season. how close are you following secondly the u.s.? is there a possibility of brand-new -- bad news priced in given last year and given that they have been shedding jobs too? >> yeah. if you look at the sector, comprising stocks that we like, stocks that are the big tech stocks, they continue to have very good revenues, even though they are below expectation somewhat. it is a structural shift. the world is becoming a digital economy. we've got social media, what is next?

artificial intelligence. you must have the exposure. the fact that we have fallen between 30% to 50% from the highs, we think it is a great time to be reengaged and that in overall portfolio construction. rishaad: thank you so much for joining us. taking a look at dbs group as they return to the 60/40 mix of equities and bonds. a lot more on the way. ♪

rishaad: this is bloomberg markets, there is a snapshot of markets, the hang seng and china not trading today. it's the lunar holiday today. we can look at general electric,

ge 2023, missing estimates. the company grapples with lingering issues in its renewable energy business. the chief executive telling david westin, is the aerospace business taking off? >> i think we exited 2022 with tremendous momentum. the fourth-quarter print for the end of 2022 had us at an exceptionally strong revenue level. led by our aerospace business. earnings were up 51%, cash up 16%. it's that momentum we bring into 2023, given what is happening with health care, the balance sheet improvements, we are down over $100 billion of debt 2018. i'm sure models are adjusting. we coming to this year feeling good about where we are from an aerospace perspective. we expect the top line to be up high teens, with services and

new units, continuing to improve given the aerospace recovery. we anticipate better performance in our business. we know we have challenges in renewables. we'll have a better year in 23. that sets us up overall, not only for good results this year, but in turn the second step of the transformation whereby we take ge public, as we did health care this month. david: we are on the schedule for spinning off vernova, where are you on the timetable on that? >> ge vernova will include our power and renewable businesses. we will bring them forward in a second step. we're on that path. . there is a lot of work we need to do internally, just to rewire the business, just like we did with health care. we know the underlying operating performance has to be better.

what we have seen over the last year in terms of pricing as well as cost improvements set this up to do that. one thing we didn't expect or two things we did not expect in late november 2021, we were not anticipating the inflation reduction act. we did not know a tragedy when unfold like it has in ukraine. both changed the outlook for the market and in turn the leadership position. david: i want to perceive -- pursue renewables. i looked at the documents. that was the one that jumped out. that was not doing as well. renewables look like they were going the wrong direction. what is the cause of that? what do you need to do between now and the beginning of 2024 to make sure the spin of will work the way he wanted to? >> when we looked at the results today, aerospace led the way, power showed his stability. we know the renewable business has a ways to go. we need is the inflation

reduction act to kick in, to give us more volume in the u.s. market. we are in the middle of a low in that regard. this is our best market geographically. when we get that volume coupled with the underlying productivity and cost improvements we have made, we think that renewables will be on its way. rishaad: that is the director of ge with their own a david westin. but have a look at the business flash headlines. microsoft swinging losses in trading after saying the revenue growth in its cloud computing business will decelerate by 4% in the current. . azure has been the biggest growth driver with a 30% jump in sales last quarter. microsoft warning and a slowdown in commercial sales for the rest of the fiscal year. texas instruments offering its first quarterly sales decline since 2020. its ceo says it reflects weaker

markets with the exceptions of automotive's. the chipmaker giving a tepid forecast, with a wide range. three shares dropping after the 2023 forecast miss the analyst estimates, warning that challenges will persist this year. it also announced plans to cut 2.5 thousand -- two and half thousand manufacturing jobs. this is a day where we see the canadian dollar in focus as well as we get the rate decision. the aussie's and focus after a stronger-than-expected print in inflation. there is the korean market as hi, i'm katie, i've lost 110 pounds on golo in just over a year. i was a diet soda addict, and i needed to have a diet soda every morning as my eye-opener. with the release, the cravings are gone. golo worked for me when i thought nothing would work for me. the first few weeks were really astonishing how quickly and how easily it came off,

how much better i felt, what a change it made so fast. i feel like anything is possible after accomplishing what i've done with golo.

rishaad: there we go.

that could be the calm before the storm. the nikkei is at 121% essentially. possibly bracing themselves for a cold blast of snow and very cold weather that is sweeping across north asia to hit japan as well. this could disrupt transportation and factories there. certain parts of the country being hit by heavy snow. but we are looking at a nikkei coming on stream again after lunch, up 0.1%. generally speaking we are seeing gains across the asia-pacific, the exception being the asx 200. australian markets under pressure given that inflation print as well. . the headline rate accelerating the fastest we have seen in 32 years, in the final three years of last year. way ahead of forecasts and boosting expectations that we get another interest rate hike from the rba's next meeting. tokyo extending gains now, 0.25%

to the upside. that have a look at the stories making first word news headlines. bonnie wayne is in new york. vonnie: the u.s. justice department and eight states are suing google to break up its adept technology business. the antitrust lawsuit accuses the search giant of monopolizing the market, hurting clients and users. in a statement, google says legal action will slow innovation and raise advertising fees. opec+ delegates expect an advisory committee of ministers to recommend keeping oil reduction levels unchanged when they meet next week. . international oil prices claimed, with china reopening -- climbed with china reopening and the e.u. section in russia. analysts claim opec+ will start to reverse its curbs at the second half of this year. congress has extended a deadline in peru to set new elections.

it has disrupted mining, tourism and agriculture. . six weeks of violent turmoil began when president castillo was impeached. protesters are calling for the interim president and the conservative-controlled congress be replaced. >> a resignation and a new elections. what will they ask for? the generate chaos and anarchy in the country. they went with illegal acts such as drug trafficking, illegal mining and trafficking. vonnie: pakistan's tested prime minister says he is confident to return. to power this year. khan says he expects to win a majority when elections are held sometime in august the former leader. is also toting a planet to shore up economy and backing the imf to stave off continuing default.

>> we have no choice now. pakistan has $4 billion reserves left. we are already defaulting on various areas. we will have to make policies like never before in our country, because we feel that the crisis which we are now facing and probably better time this -- probably by the time this will have become much worse, we fear the seleka situation. vonnie: vonnie: indonesia is planning a social media campaign to lure tourists to bali. it is moving to have direct flights from beijing, shanghai and guangzhou. indonesia stores a minister says the goal will depend largely on chinese tourists. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. rishaad: thanks. we will now have a look at what

is going on with headline inflation in australia, accelerating the fastest -- well, it has not been hot since 1990, or thereabouts. for more we have our bloomberg reporter. this was way above what analysts and the economists are looking for. what is the rba going to make of all this? swati: yes, it was higher than expectations, and the trimmed mean which the rba focuses was higher than the expectation of 6.5 percent. the expectation was six .9%. it tends to be stickier. it will make them nervous because they were not expecting the services side of inflation to go up that far, which really

seals the deal for a 25 basis point interest rate hike in february. rishaad: what was the biggest contributor here to these prices? ? swati: the biggest contributor was actually people going on holidays, travel, accommodation, airfares, both international and domestic, led the gains. electricity was one of the contributors as well. we also saw nontradable inflation or services inflation rise pretty strongly. so things like rent, hairdressers and stuff that you kind of seat in the local economy, domestic inflation was extremely strong. rishaad: and also, we have read about inflation in the u.s., in britain and europe as well. we have seen signs of hops a

calm. why is australia the -- we have seen perhaps a calming. what is australia the standout? swati: we saw that australia was lagging the world when inflation was picking up last year so we are a bit slow compared to the rest of the world when things are easing. a lot of economists believe that we are past the peak so hopefully that is true. in the current quarter and subsequent quarters, we will see price pressures easing in australia as well. rishaad: swati pandey joining us , bloomberg's economics reporter. sri lanka is looking at the interest rate decision. the benchmark rate unchanged. it is a fourth straight meeting there that has happened. inflation shows some signs of cooling down. thailand is heading for a third quarter-point rate hike. let's get to our next guest, our

southeast asia economy reporter. sri lanka has had a terrible time of it in the last few years. the currency is something like 80% down. is this going to be a long hold for them, or is a rate cut in the foreseeable future? i guess that is one of the main reasons that meet stop them, the currency itself. clarissa: for sri lanka, economists think the central bank will hold for the rest of the year, looking at the central banks, right now. it is necessary to bring inflation to single-digit levels by the end of the year. i think we will get more clues when the central bank president when he speaks, then his remarks will offer us better -- on that one.

rishaad: colombo had the huge debt restructuring issues. give us a sense of where we are with those and if the economy is coming out of the woods. clarissa: the most crucial piece of the puzzle in terms of immediate relief for sure linke the imf's approval of a 2.9 billion-dollar bailout for sri lanka. it has to receive official assurances from china, india and japan, its three biggest creditors. i think india and china have already given. japan has yet to give approval. and a thank sri lanka is expecting final imf approval to come within this quarter. so a lot to watch on that front. rishaad: let's talk about some of the others. we have the bank of thailand this afternoon as well. what about them? could we see a fourth interest rate hike? they were late into the game, one today? and others might -- weren't they? and others may have already paused in the neighborhood.

clarissa: they are were. not just delayed in terms of timing, it has only raised by a total of 75 basis point, compared to 350 basis points in the philippines, 225 for indonesia, 304 vietnam. -- 300 basis point four vietnam. to the extent which it has raised, it is lagging its neighbors. the expectation of some analysts is that it has a few more ways to go unlike its neighbors in terms of the tightening cycle. rishaad: despite that, of course, the thai baht has been an absolute standout so far this year. i guess that is also playing out in this rate decision, too? clarissa: we actually have one analyst expecting a hold because of that, the analyst was

expecting that the central bank will want to stabilize a bit. 19 of 20 are expecting-basis point hike. yesterday we heard them ask the bank of thailand to delay further tightening because the surging thai baht -- by the way it is up 17% or so since its 16 year low in october. so that is eroding the competitiveness of thai exports. so we have seen the country's exports contract for a third month in september -- since september. these dynamics will be part of the consideration of the thai monetary authority. rishaad: thank you very much, clarissa batino. we have a preview of india's

2023 budget and what it tells us about prime minister modi's plans as he heads into national elections next year. all that and more, coming up. this is bloomberg. ♪

rishaad: there we go. smoke. describing at the moment conditions with regard to the financial capital there in india . we have the nifty indicating a flat start to the trading day. talking of which, we have the country's 2023 union budget. the full year expenditure plan for prime minister modi's government which, is holding elections in 2024. let's get to the vice chancellor at a school of economics. what are you expecting in this jet? >> i expect the continuation of the good work the government has done in the past two years,

focusing heavily on the recovery of growth and that the same time trying to balance the fiscal pressures. i don't think they will do anything different from what they have been doing for the past two years, despite being the last full budget before the general election. rishaad: ok. if we look at that, with that election in mind, do you expect a degree of populism also to be reflected in this budget? guest: there will be some temptation to go for populist measures, especially when the economy is doing well. maybe there are expectations, but i would expect not to go that line because i believe the most populist measure from the government would be an economy which can generate more jobs. if you want to have more jobs, we need to sustain the growth

recovery process we have seen in the last two years. i am sure all of you know that india is doing extremely well. they should not get the temptation of getting to be a populist nation. rishaad: with the government that seems to be hugely popular anyway, the temptation, as you say, is there, but there are no reasons to actually act upon it. dr. bhanumurthy: if you have seen this government, more of the focus was on how to improve the public delivery mechanism. i think that has been the major goal of government. they were they have improved the usage of digital technology, in terms of delivering all of the social sector programs. the major focus seems to be not as much on the outlet but more on the outputs and outcomes. it has shown many positive

results in many of those schemes. we started having some kind of pop sunset clauses in the popular public sector programs. the focus is on improving the efficiency of public expenditure, but really on increasing the outlets. rishaad: what about taxation? it is a hugely problematic thing to navigate in india. do you expect a bit of simplification, a simplifying of capital gains or lowering rates, or also fiscal consolidation? dr. bhanumurthy: i think there is a slight disappointment from the corporate sector. the response for the corporate sector on the reduction of corporate taxes, i think it seems to be discouraging. the finance minister has already

made the claim that the government has done so much in terms of taxation. we're just waiting for the private sector to respond. in terms of the racialization, improvement in the water tax administration, it is a continued process, especially when you are getting more information through digital technology so that the process will be very continuous and there could be some measures that may be coming up in the budget in terms of the racialization. but in terms of fiscal consolidation, again, those looking at india closely, we are still waiting for credible fiscal consolidation roadmap. they couldn't do much during covid. this will be the full budget where we are free from covid issues, and i hope that the government would revert back to

a broad that gives sustainable public finance for the next five years and also helps in mobilizing more resources for development and also ensures high growth in the economy. rishaad: unemployment has been an issue as well. how much can this budget deal with unemployment, which is a perennial problem? when we say unemployment, a lot of it is underemployment, too,. god knows how many people are also working in the informal economy, too. dr. bhanumurthy: in terms of the unemployment, it is a function of gdp growth. if we can ensure sustainable growth in the next couple of years, i think employment will also improve. there is a revival in employment

opportunities. but you are right, there are certainly underemployment in many of the sectors. we do see a structural shift happening in the implement from the sector. for example the agriculture sector. so i think in recovery in construction and other activities, we see bush shifting from agriculture to construction activity. in fact, last quarter construction picked up really well. once we see a full recovery of all the contact-intensive sectors, we should see improvable both in the formal and -- improvement both informal and in informal jobs. people are talking about allocating more resources to rural employment. also looking at if we can have a similar program in the urban sector as well. i do hope the government will

look at these issues in the coming budget. rishaad: inflation in a years time, do you think it will be back at the 4% target that the reserve bank has? dr. bhanumurthy: we aren't happy with less than 6% compared to what other countries have at the moment. the central bank of india is focusing on managing and nation. the more they are successful. while the median inflation should be close to 4%. in my view due to the current global conditions, median inflation near 5% is still a very big achievement for micro growth stability. the central bank seems to be focusing somewhere close to 5% so we are happy with it. rishaad: dr. bhanumurthy, from the ambedkar school of economics university

. suzuki is up zero .8% after its third-quarter debt income came in ahead of the average analyst estimate. it is the country's biggest carmaker in the country. not to confuse it with tata which is india's biggest carmaker. what is happening with hindenburg research, one of the shortselling companies, it is -- it has issued a critical report on adani group, saying it has taken a short position on the conglomerate. we don't have any response from the representative of the adani group, who is not at the moment responding to the allegations that the hindenburg is making. a lot more on the way and a full check on the markets and more. this is bloomberg. ♪

rishaad: seven minutes from the top of the hour. we have the latest business flash headlines. annual profit outlook for this company, the first downgrade in three years. nidec saying that the severe

business environment is hurting demand and forcing the company to restructure. the company, based in tokyo, expects profit to be lower. its prior guidance was higher than 1.6 billion. rupert and -- murdaugh are abandoning plans to reunite their two media companies. some investors had approached the merger. the deal, first announced in october was seen as a way for lachlan mad dog to assert control over the media empire. binance says it kept its user funds stored with its reserves. they were almost half of the 94 coins binance issues along with some customer assets. when questioned, binance issued a statement admitting collateral assets were moved into the wallet in error.

u.s. senators are blaming live nation's market dominance for soaring ticket prices and complaints of terrible customer experiences. that company's ticketmaster division was grilled by the senate committee after the botching of taylor swift concert tickets last year over alleged monopolistic practices. the justice department is also examining some antitrust issues there as well. let's look at the picture for equities. this is what we have in india going on and it is all down to this research by hindenburg, saying it has taken a short position in adani group. adani has not responded here. you can see adani enterprises is 1.9% to the downside. cebu air saying it will have 100% capacity at some stage in march this year. philippine airlines holdings are down 2.5%. for others, a mixed bag.

asiana airlines in tokyo is a bit to the downside. ana holdings, a bit of a mixed bag that we are definitely positive. we have a right decision out of thailand, coming up at 3:00 this afternoon and that is expected to show an increase in the cost of borrowing there. we have seen the thai bat as one of the best performers in this part of the world. singapore with inflation numbers in a few hours as well. the straits times index gaining one .75% movement to the upside. australia saw higher than anticipated inflation. the headline, 32-year high there. this is bloomberg. ♪