>> nearly 10:00 a.m. in hong kong and singapore. this is bloomberg markets. chinese yvonne: docs mixed as aging rolls out tax relief and construction bonds to offset the economic impact of covid lockdowns. president biden meets with his quad counterparts in tokyo after unveiling a new economic pact to assert u.s. leadership in asia. the tile and central bank is in no rush to raise rates and says inflation will return to target next year. our interview with the governor is next. rishaad: a little bit of a sinking feeling thus far when it comes to equities. not a sinking feeling for some of the other asset classes.

the dollar sharing that sentiment. propelled overnight. we will come to more of that. let's have a look at what is going on with a bit more detail. david: equity markets, the general direction is down although i would go for as far as saying nothing is happening across asian equity markets. the big story across equity futures is what happened to u.s. futures. 7/10 of 1% reversing the gains of 1% overnight. a reversal in the dollar weakness. asian effects lower against the u.s. dollar. have a look at where we are in the chinese currency. ubs is coming up. you be -- jp morgan. here is a refreshed forecast for the full year. coming against the backdrop of what was announced yesterday. 33 measures to support the economy. the thinking is 3% for the full year.

yvonne: we also have the likes of scotia bank saying 630 for women be on the back of this news the u.s. may be considering removing some of these tariffs. we are not seeing that spillover in the asia-pacific. we heard from katherine tai. she still wants to remain strategic when it comes to this relationship. does this hurt the u.s.'s leverage on china if they remove some of these tariffs? that is going to be a key question. we talked to kueng sure saying we have our doubts. and whether china will reciprocate. that is another question as well. here is more from katherine tai. >> our approach as with everything in this relationship is to be strategic. we have to keep our eye on the ball in terms of how to effectively realign the u.s. china trade and economic relationship. rishaad: a lot of this after

what is going on with the central banks. this tightening cycle. what happened with pakistan. the economy looking in a pile of state right now. the euro a tad down. we have seen the euro climbed by 1%. the rupiah at the moment a bit stronger. that is five days of the euro price action. a gain of 1.1%. trading at one dollar and 6.6 tenths -- 6.6 cents. we have christine lagarde coming out with comments. she has arced some of our rivals. david: she said rate hide -- yvonne: she said rate hikes or coming in july. i gave a lift to the euro-dollar. the u.s. president wrapping up

his five day trip with the quad summit underway in tokyo. the strategic grouping of the u.s., india, japan and australia discussing the challenges posed by a more assertive china as well as north korea and russia's war in ukraine. rishaad: here is stephen engle. what are they trying to achieve here? we have had responses from china but what is the basic message they are trying to send? >> quad is a strategic gathering of these four main parties and you could probably add south korea because biden's trip began in south korea and the threats posed by north korea. the quad is japan, the united states, india and australia. in addition to that, the indo pacific economic framework which biden announced yesterday which is 13 nations including the united states. vietnam, thailand, malaysia, singapore, or not, india, japan,

south korea, new zealand to it is a sphere of influence. one of the most striking parts of jode biden's comments about 10 minutes ago -- it is called a camera spray where the four leaders met before the camera. they gave usually very boring comments. not to be tough on them but biden's interesting comment is when he almost stopped himself. i'm going to say it anyway. when he said on his phone call he revealed with president xi jinping he asked him why do you feel you are an indo pacific power and biden says because we are. we share the west coast -- the west coast shares with the pacific. we are an indo pacific power. by that definition, china is a north, central and south american power as well.

anyway, i digress. it is the u.s. trying to increase its pivot to the asia-pacific with china's growing economic and military clout and diplomatic assertiveness. yvonne: he is wrapping up this trip. we can focus on the headlines, the gaffes, the like how would you summarize the trip? >> reacquainting because it has been 16 months since his inauguration. he has met with key she -- with kishida before. he has met modi in washington to he had not -- in washington. he had not met been easy. just reasserting the united states is engaged in this part of the world and they need to been together if you will like-minded economies and that is why the ipf is interesting. katherine tai said this is not your traditional free-trade or

trade deal by design. it talks about connected economy, resilient economy, clean economy, a fair economy. a lot of these bigger concepts that have garnered some criticism because most trade deals -- an fta is annexed number of increases or trade deals. this is a broad brush stroke approach. one thing that stuck out to me is diversification of supply chains and early warning systems. they are trying to preempt another crisis we are seeing now caused by the pandemic, caused by overreliance on china for supply chains. yvonne: our chief north asia correspondent. it seems the announcement or consideration of tariffs being listed really sent fx markets on a wild ride. david: it is worth noting the last time the renminbi and we

were talking about a seven handle. the last time the exchange rate broke above seven was when the tariffs were put in place in 2018, 2019. fx and rate strategy is turning us. help us understand what the market is thinking in the event we do get a reduction of some of these tariffs. >> it would be a positive for the yuan. it would help prop up the chinese economy. the question is how big a benefit would it be? you have to weigh that against the existing lockdown which is weighing the economy. even if the tariffs were weighed, the question is to what degree would they be waived and one where they kick in? while the initial euphoria -- there is a lot of uncertainty about how i may play out. in the near term, you think of the

slightly bigger impact overall. david: lots of moving parts. i wanted to talk about comments out of the ecb. you take that on its own, hawkish but you take context where some official want to keep the possibility open for bigger hikes ahead. you get a sense the peak in the dollar is behind us for now? >> certainly if you look at -- you can say look at the bloomberg dollar index, you would say has come off its high. my colleagues would say it has peaked. i'm not quite so certain. two factors are u.s. interest rates and facing were equities go. you still have pce data. if that comes in hi, you could see supporting the dollar. with equities, there's no

guarantee they plateaued yet. quantitative tightening to kick in starting next month. not going to be a positive for equities. slightly short-term. i would not say necessarily yet. david: for us out of singapore. we are looking at some latest lines out of carrie lam. yvonne: we have been focusing on the quad but we did have carrie lam's press briefing. she was asked about whether we are going to be lifting the quarantine measures. unlikely the chief executive saying or the outgoing one said unlikely hong kong is going to lift quarantines in her term. sheila has five weeks left. she only has five weeks left. rishaad: maybe we will get a nice present. let's take alert at the first word -- take a look at the first word news. president biden forced to walk

back comments on taiwan are the remarks appeared to break from the long-standing u.s. policy of so-called strategic ambiguity the biden administration clarifying saying the president was only promising aid to help taiwan defend itself in the event of a conflict. the kansas city fed president saying she expects the fed to raise interest rates by 2% in august. she adds evidence inflation is clearly decelerating will informed judgment about further tightening. the fed did hike by 50 basis points earlier this month. we have sources telling us the ecb or ecb officials are worried president christine lagarde will not be raising rates fast enough. a blog post spelled out the timetable. it rules out a half-point move

by 25 basis points in july and september bloomberg understands that has made hawkish officials uncomfortable. rising prices mostly concentrated in food and energy. the bot is among the few asian central banks that have stood pat on the rates this year. >> the critical thing for us is not to be -- not to say too much broadening. to make sure the medium-term expectations remain anchored. rishaad: the central bank in davos. that is a look at the first word news. david: just ahead, 20 minutes from now, our exclusive

interview, the largest ipo in history. a share price up 65%. we will speak with the company's president. yvonne: our interviews with the devil is what economic forum continues. trouble ahead for -- the dapo's world eked -- the davos world economic forum. this is bloomberg. ♪

rishaad: a lot of action on the currency markets. the euro just one dollar and six. a gain of about a percent

against its american counterpart. looking at another interview from davos. we have the international monetary chief telling bloomberg she does not see a global recession but the imf will need to come to the aid of some developing country. >> if you want to -- increasing standards of living, we have to work together for it. >> what does it mean for the next 12 to 18 months? if you look at inflation, that could lead to famine. it is going to be extremely hard for especially poor countries. you have the chance of a worldwide dutch worldwide recession. how high is the? >> we are projecting a lower growth than we anticipated last year. 3.6% versus 4.9. let's remember 3.6% is the average growth in the previous decade. we are still protecting to be in positive territory.

-- two, appreciation of the dollar. three, slow down in china. all of this is making further downgrades not out of a question. for some countries, there is now an increase. but we do not anticipate a global recession. >> especially the dollar rally, it has huge implications especially for countries arras -- across the world. you expecting the imf to have to step in a lot more because of these imbalances we could live through the next 18 months? >> we are living in a time of a crisis upon a crisis. who is most at risk? the countries that were weakest to begin with.

we are already seeing an increase of demand for imf engagement in lebanon, asia, sri lanka and we are looking into the 2022 as a difficult year for especially developing countries under a high level of debt. cost of services debt comes up in your in tight fiscal position, this is the time when the imf has to step up and we will do. yvonne: the imf director speaking with francine. she does not see a recession but when you talk about stagflation, a fat tail risk and you are seeing that term being thrown around quite a lot. david: the number of news articles we track that have that term has been spiking. when you look at this chart,

monthly mentions of stagflation. i wonder is this live. stagflation. stagflation. yvonne: it is a monthly thing, david. rishaad: recession is also one mentioned in articles. david: recession. you went with the art word -- the r word. yvonne: it seems there is a lot of chatter about when is the next pivot for powell. people are saying maybe it is going to be earlier to people are starting to think, when is the fed going to start caving soon. david: as paul gamble calls it -- rishaad: as paul gamble calls it, irritable powell syndrome should he is very unkind. we have a lot more coming up. this is bloomberg. ♪

yvonne: hong kong and china doing this now. we have seen a version in these markets. still trying to digest these tax cuts, if they will move the needle when it comes to growth. you have growth concerns that continue to play out in these markets. let's talk about the ipo market in hong kong which has been hit hard during this pandemic and trekking to the lowest level in nine years. the stock exchange ceo saying it continues together pace the rest of the year. he spoke to has paid what i like to -- to has. >> what i like to look at usually is our companies summoning their filings and applications. we have between 170 to 180 applications of people that have

shown an interest of file for their ipos. what is happening is i think it is not that related to covid as much but to the environment, the economic environment and the fact that valuation seems to be a little down and solve. people are filing. we have almost record level of filing applications. they still have not pulled the trigger in a significant way. >> when you expect the trigger to be pulled because right now, it is impacting earnings. you're looking at earnings in the lowest level of -- the earnings at a lowest -- the lowest level in five years.>> w. when we look at the numbers, the numbers are actually quite good if we look at the last five years. what we see is the general sentiment has lowered the amount of trading that happened. at the same time, valuations are lower. what we see is eventually the

market will come back. it always has. there are periods when valuation seems a little bit lower. then they pick up. i cannot predict whether that is two months, six months, seven months. what i know is if i take a longer-term approach and i look at 5, 10 years, opportunities in china. >> you took over as ceo of hong kong exchange almost one year to the day. the 24th of may. you did a trip to china in april. what was the message you sent across to china? >> we have a lot of stakeholders in china. we have a lot of partnerships. we forged some new partnerships with the china climate exchange. there is a lot of positive interactions we have. the key message that i heard is around the importance of hong kong developing and continuing to develop a key international

financial center. a global international financial center. that is very important and that was very clear. we have a unique role. the most international city of china and the most chinese city outside of the mainland. >> are more projects expected? >> i think there is -- the opening up of china will continue. yvonne: that was the hk ceo speaking to has. dd global has secured a blessing of shareholders to delist from the new york stock exchange. it plans to file the required april work on or after june 2. the vote clears the way for the company to work with chinese regulators demanding an overhaul of its data system. that would allow dd to begin preparing for a hong kong sheriff lott. airbnb is shedding its operations in china, choosing to focus instead on outdone chinese

towards him as the country continues its aggressive approach to containing covid-19. the company is said to be playing to end its offering of domestic rental homes in the summer despite a big push on the mainland. china accounted for only 1% of the company's revenue the past few years. jenny's electric car maker exponent reported a wider than expected quarterly loss. the net loss more than doubled to join $60 million. a firm sales forecast also below estimates. shells in new york closed below 5%. down in hong kong this morning. david: we are down 14% over two days including what we had yesterday. then we had new york. the 7% drop we are having today. some bright spots across the chinese car space. on the back of some of the support measures announced. one of the 33 meant to support

the sector should rishaad: just having a look at the japanese carmakers. we did have news coming out of toyota. talking about their production targets. planning to build 850,000 units globally in june. them keeping their quarter your target of 9.7 million units. semi shortages making forecasting difficult. yvonne: chicken stocks in asia. banning poultry exports. the latest in this food reduction is a move. korean poultry shares jumped as aware -- as well. singapore, where are they going to get the chicken rice? plenty more to come. this is bloomberg. ♪

yvonne: 11:29 a.m. in tokyo. japanese markets heading into the lunch break, seeing downside pressure on equities. dollar story is once again reviving and we are looking at of course a lot of action in tokyo. whether this quad meeting, the indo pacific trade pact the u.s. signed with 13 other nations. david: at least something is happening. nothing is happening with the markets. .5% as we head into the lunch break. that comes on the back of this turning over of the u.s. dollar. it is a view on the yen and the euro when you look at the dollar index. there is the state of play as we head into the lunch break in the japanese capital. rishaad: slowly.

and what better time than now than to look at the first word news. president biden's trade representative saying the u.s. has to be strategic when it comes to removing tariffs on chinese imports. this came a day after the president said he would review trump-era levees. he would not see whether the administration would remove the tariffs or give a timeframe for a decision. >> with respect to the tariffs, our approach as with everything in this relationship is to be strategic. we have to keep our eye on the ball in terms of how to effectively realign the u.s. china trade and economic relationship. rishaad: china is said to offer more than $21 billion in additional tax relief, mainly aimed at businesses. it seeks to offset the heavy impact of coronavirus lockdowns. it includes additional tax rebates to companies and cuts of $9 billion on passenger car purchase taxes. the additional tax cuts represent about 1/10 of 1% of

chinese gdp last year. sri lanka is said to be plenty to appoint a minister for finance and another for economic revival. the key portfolio of finance has been vacant for over two weeks and it is crucial for negotiations with the imf as well as bondholders. the prime minister may double up as minister for economic revival to guide domestic policy. david solomon says their employee's death on a new york subway is a senseless tragedy. police are still searching for the unidentified man who they say shot and killed a goldman employee on a subway train. the victim worked for the firm since 2013. and that is a look at the first word news. david: let's have a look at the action across central banks. so far recapping monday, you had three and pretty much raising interest rates by this amount. coming up later today, we will get you more of that in a couple seconds.

as you make your way throughout the course of the week, the rbnz expected to hike. korea, ditto. turkey is expect it to keep rates unchanged, at least for now. yvonne: they are seen holding 20 out of 30, but you still have 10, which is not feel, that think we might see hike today, 25 basis points. this is the first time they are even considering this in indonesia since the pandemic era began. it quite be -- it could be quite significant. how aggressive can they actually get? hawkish paws seems to be the consensus right now. rishaad: let's have a look at the bot, the thai central bank. we have been hearing from the governor, this is the blue line at the bottom, half a percent of where interest rates are in thailand. they have stood pat, whereas others are starting to move. philippines lifting to 2.25%.

we saw that from malaysia as well, now 2%. also flatlining, bank indonesia expecting something as well. and we are seeing the bank's governor being confident inflation will return to target next year, signaling there is no rush to raise rates. in davos, he told bloomberg he is focusing on a study economic recovery. -- steady economic recovery. >> our forecast for inflation has increased. the official latest forecast would put out is increasing from 1.2% last year, this year be expect 4.9%, problem we some upside risk in the forecast. but we expect it to come back within our range next year, 1.7%. inflation is no doubt trending higher. it is higher than our inflation wage throughout the year. but i would like to point out the inflation in thailand is quite different from what we see in the advanced economies. it is mostly cost push inflation. it is relatively concentrated

energy and food. we do not see the kind of demand side inflationary pressures in terms of an overheating economy. that is largely to do with asia and thailand as well, we are in a different part of the economic cycle that they are. >> but if inflation persists and trends higher, the consumer will get hit. how could you mitigate that, anchor inflation? >> yeah, the anchoring is very important. in asia what we see is energy inflation has been more muted than in the advanced economies. part of that is the government has undertaken fiscal measures targeted towards trying to mitigate and mute the increases in gas prices and whatnot. on the banking side, the central banking side, we have a medium-term inflation framework. so the key for us, the critical thing for us is to not see second round effects happening, not to see too much broadening of the things that are increasing prices. and very importantly, to make

sure the medium-term inflation expectations remain anchored. right now based upon the latest surveys, they are still anchored relatively close to the top end of our range, but we have to keep a very close eye on where those second round effects are starting to occur. there are a lot of moving parts right now. there are moves to increase the minimum wage in thailand. the bhat is depreciating. so we need to keep a close eye on all those things. haslinda: there is a lot of hope that the fed can navigate a soft landing. it's quite worrying, seven weeks of decline. what is that suggesting from your perspective as a governor? what is that reflecting in terms of the state of the economy? >> in terms of the u.s.? i think the fed has a very difficult challenge. they are trying to navigate and get a soft-ish landing. again, that is not particularly easy.

i do think a lot of my own personal view is a lot of the doom and gloom we see is driven more by what the market has been doing. as a famous economist has said, the market was pretty big in nine out of the past five recessions. that said, i want to say the policy challenge in advanced economies like the u.s. is very different from the policy challenge of asia because we are in a different part of the economic cycle. in the u.s. it is trying to get a soft landing. for us it is trying to ensure the take off and the recovery continues and remains smooth. haslinda: in your view, has powell taken the right steps? >> far be it from me to comment on others. haslinda: come on, governor. you are comfortable with how powell has handled? >> he has a very difficult job and they have done as good a job as can be expected. yvonne: that was the bank of thailand governor speaking with has t davod. david: let's stay in southeast asia. a brief look at what is

happening equity wise. this graphic tells you everything you need to know about this year and also to date. those of the only two markets up in the asia-pacific year to date, singapore and jakarta. the philippines. flipping the board, having a look at your currency markets had a conversation we had yesterday was certainly around who remains basically at current levels when it comes to the policy rate. it seems thailand might just be the candidate. the rest of the southeast asian region seeing already hiking rates or about two. about to take rates higher from here. rishaad: we're going to be speaking to one of indonesia's largest e-commerce platforms. they had a bit of a bumpy ride since they had their initial offering. we have the president of the company joining us next. this is bloomberg. ♪

rishaad: let's look at southeast asian markets. bit of a mixed bag. singapore north, malaysia going the opposite direction. jakarta at the moment the clear winner amongst those. talking about one of those companies which did indeed list in jakarta. it was bukalapak.

its ipo was the largest in the country's history. the e-commerce giant raised $1.5 billion in that launch. excitement high at the launch, and things though, not been that great for the share price for this online mall. yvonne: 60% or more off the peaks we saw. the company's market cap now around $2 billion. joining us is the company's president, teddy oetomo. i guess you are on the same ship as a lot of tech companies right now, facing challenges of soaring inflation and rising interest rates. how do you think that affects your business? teddy: i think from the company side, rising interest rate, interestingly enough, it has a bit of a benefit because when we are sitting with 20 trillion rupee of cash, increasing interest rate reduces our cash bank. in the first quarter we earned

about 250 billion rupee. obviously as the increase in real -- in the interest rate, it would curb it further. as it is now, we have over 20 years worth of runway in our cash if we include the interest. that will prolong that. in regards to inflation, the other interesting part is if you look at the history of asia, we're targeting on the mass-market that more than half of our business are targeting on the traditional mom-and-pop kiosk. if you look back at the previous economic cycle in this country, even in 1998, the most severe one, the one that is the most civilian is the micro segment, the mom-and-pop kiosk, the small business. at the time, banks reprimand the lowest amount of -- a lot of people down trade. we also saw the same thing on the covid pandemic into beginning. on top of having mobility issues, people trade down and go

to the mom-and-pop kiosk to address the lower producing power. david: so, just help us understand given that backdrop, what your plans are in terms of your growth in your money. you have barely touched the money raised. so you are still sitting on $1.4 billion u.s. what do you plan to do with that money and when you plan to spend it? teddy: cash is king, right? so i think we will continue to be putin. if you --continues to be prudent . for us, when we are making an investment, it is not just something we need. it's crucial to make sure the evaluation makes sense and you saw that in our investments. so righ tnow, we've in the mode

where we want to make sure we continue to focus on growth sustainably by focusing on how to bring the company into positive territory, not just net income from capital gain. we want operational to be profitable, and we want to achieve that at the minimum cost efficiency possible. we don't plan to recklessly spend on this cash. rishaad: that brings us nicely to talk about the bank. how does that contribute to your path to profitability? on bloomberg we report net income more than anything else. when do you expect that net figure to be profitable? teddy: the reason why i did not want to touch net income is because our investment was market to market. in first quarter 2022, positive net income. adjusted ebita represents more the operational level. in the past post-ipo, we guided it would be 36 months since the ipo, we are still maintaining that view. on the operational basis, it is

practically pretty simple because essentially every single path of our business, every single prong of our business requires a robust financial service. be at the mom-and-pop kiosks, the merchant, the end customer. it supports the stream for us to empower every prong of our business to service the customer better. yvonne: you also acquired hello fresh with a 35% stake. can you give us some indication of how that business is going and how impact of an intact that will have on your topline growth? teddy: it will be meaningful in the future. as you know, we have about 13 million mom-and-pop kiosks. a majority of them are resellers because they are a traditional convenience store. the capacity they have with this price, 128 sotres, we can use

that to service our mom-and-pop kiosks. it will be crucial for us in the future to continue our penetration into this segment. david: ok. are you looking to make any other acquisition these next 12 months or so? i know you probably won't tell me if you are actively looking, but just give us an indication of the kind of asset that probably suits your portfolio. teddy: for us, it has always been very simple criteria. it has to be something that we needed for the business. and it has to be something that also comes at a good valuation. just because we made it doesn't mean we will spend on reasonable valuation. you saw that on our deal with bank allo, with allofresh. we will continue to be disciplined with any investment we make in the future, if any. having said that, i want to make

it clear that if a good deal comes to our desk and it is something we need, we will look at it. but valuation needs to be attractive. that is key. rishaad: i would hope you would look in a disciplined way, te d dy. let's look at the economic macroenvironment we live in. tell me what sort of inflationary pressures you are seeing on your e-commerce platform as well. are you visibly and tangibly seeing it? teddy: i think inflation is a global issue. you see that from the energy price increase, the basic needs. there are signs of potential increase in some prices. the experience we have had the past from the history is when that happens people trade down. when people trade down it means rather than buying shampoo they are buying -- as a result of that, these mom-and-pop kiosks, a lot of them are selling.

as a result, in the past they have been the most resilient and the beneficiary of the secondhand. rishaad: ok, but when we look at the whole environment you look at in asean, and we have member states signing an agreement to facilitate cross-border e-commerce, does this mean perhaps he would be looking at consolidation with similar e-commerce platforms in other parts of the region? and what with the david mentioned, $1.4 million on the balance sheet, that gives you a lot of ammo. teddy: at the moment, 99% of our business is focusing on indonesia. also if you look at the segment where we are highly differentiated, more than 70% of our business are from outside one city. more than half of our business are coming from -- the traditional convenience stores, we empower them to be

practically the same type into a modern retailer. so that helps them stand and compete with other players in this country. in regards of that, we will continue to focus on that strategy rather than trying to speculate on any potential in the future, because our focus remains this. david: since you are now a public company, i need to ask you what you think about your stock, which has fallen. obviously because you are still not making money, i want to ask you directly, what financial or valuation metric do you think investors should be measuring your company's worth as we speak? teddy: i think the decline in stock price is pretty much in line with what you see globally. it is hard to go against the global trend. from our side, what we are very focused on is to continuously enhance our revenue base, and at the same time, to manage that

without a significant increase in cost. as a result, if you see in the last quarter, our contribution margin being defined as revenue minus cost of revenue minus marketing. that's 4 million per three months. roughly $1 million. so where we are focusing right now is continuously enhancing that number, continue to increase that volume, so subsequently we can result in pacific ebita. -- in positive ebita. we've in -- net income will be on a positive level. i quite realize that bloomberg puts a lot of focus on the net income, but technically in the first quarter 2022, we already have net income positive. it is only fair to look at it more on an operational basis. yvonne: how do you view the

competition right now in southeast asia? what is the strategy to come out on top? teddy: for us, we're continuously focusing on the city. we continue to do this with the mom-and-pop kiosks. that services a lot of areas without credit cards and all that. because they are able to facilitate cash payment. that will be our strong focus going into penetration, and that differentiates us to a large extent versus the other players. at the same time, when you look at some guidance we have given out, we're a lot more reasonable in regards to the e-commerce side. we expect it to grow 20% to 30%. we expect a strong growth driver for this company. that will continue to be our strategy going ahead. david: teddy, thank you for

making time. speak to you again, sir. plenty more ahead. keep it here. this is bloomberg. ♪

>> it is clear that 2022 will be at lower levels than last year. >> i think the responsibility

for inflation is squarely with central banks. to the extent that they are able to exercise that responsibility, they will do with higher interest rates and that will lead to a lower economic growth. i think that is inevitable. >> raising interest rates is not going to solve the problem of inflation. it is not going to create more food. it is going to make it more difficult because we will not be able to make the investment. what you do is you have supply-side interventions. david: ah, the iver continues to be essential in conversations in davos. speaking of inflation, india, the latest one to get, for all intents and purposes, basically tell us they are about to hike interest rates and the rising yield environment. 10 year yield, the exchange rate on top reflective of what they told us yesterday, that rate hikes will be coming these next few meetings to combat inflation. yvonne: fiscal slippage. that was the big worry from the

bond market. also watching what has been going on in hong kong, where we are seeing mostly red across the board. if you look at some movers, geely is the exception. sands china on the flipside, down 5.5%. the casino gage falling some 3%. maybe it is on the back of comments from carrie lam saying no lifting of quarantine measures anytime soon, her term. but the reopening trade obviously still in focus. rishaad: taking a look at general market moves. we have a down over aero -- a down arrow story. those old felons, the risk of higher and higher inflation. its toll on growth as central bankers look to increase the cost. companies also trying to navigate this slow down. fresh pictures from china time

-- trying to boost growth as well. this is bloomberg. ♪