Those deflationary pressures, gdp target front and center, will it be 5 . Could it be below five, some say unlikely, but we wait and see in terms of where the target would be. It is also about the fed. We have fed chairman Jerome Powell set for testimony expected to reiterate the fed is in no hurry to cut rates, it is likely to lean towards a hawkish tone. We heard from many officials saying that the fed can afford to wait given the data, given strong inflation remain sticky, and the economy remains resilient. The fed, as well as china, expected to did cake dictate sentiment in the market. Also keeping an eye on thailand, india, as it is said to join the trading day in 44 minutes. Lets look at the set, currently up 0. 3 . This is a market that has been lackluster, one of the worst performers in asia yeartodate. Down 3 on the year. The thai baht has been under a lot of pressure, but today gaining 0. 1 . 35. 805 versus usd, and indian future is pointing to a higher open, up 0. 3 . Adani shares in focus. It has kicked off the sale of its adani green 18year dollar bond, its first since that hindenburg report. Lets check where we are in terms of chinese assets ahead of the mpc thats happening today. China as looking cautious. Swinging between gains and losses. They have been rallying in the lead up, china stocks were among the biggest gainers in february alone. Will be mpc reveal big enough bazookas in terms of stimulus to drive them higher . Chinas yuan trading at 7. 20 versus the usd, supported by the pboc. The hang seng up 0. 2 , bucking losses we saw last week. Lets get more on what to ask back from china this week and bring in our chief north asia correspondent Stephen Engle in beijing. As well as eric from Bloomberg Economics and our asian equities reporter Charlotte Yang in hong kong. Steve, it is a big week for china. Yes it is. That gdp target we will get from premier li qiangs work report tomorrow morning will be indicative of the level of confidence. Authorities have in the economy going forward. Its been a difficult 2023, with multiple shocks, whether it is property obviously, consumer confidence. The external situation and the like has cast a pall on the economy. We did see the National Team in february prop up some of the equity markets which were slumping also during the Lunar New Year holiday which was in february, we saw tremendous spending by consumers as they traveled but you have to take that with a grain of salt because two weeks of travel spending during the Lunar New Year holiday, also known as the spring festival, does not necessarily mean it will be a year of bumper spending by consumers. That work report is coming from li qiang tomorrow. Most economists expect a repeat of the same target of around 5 gdp growth. If they go lower, that is not a very confidence boosting sentiment. If they go higher, you know what that means they are confident they can get some growth, but how will they find that growth . Are they going to open up the fiscal taps and spend more like they have done in years past. So far the leadership has not done that. Xi jinping has repeatedly said he wants highquality development. He said that 128 times in 2023, double that of 2022. While they are derisking, they dont want to exacerbate those debt issues in china. Haslinda talk to us about the sentiment on the ground. We have seen unusually protests from the chinese people. There is a sense communication has been lacking. They are unsure how xi jinpings visions will be materialized. I can give you some anecdotal evidence from the people i have spoken to this weekend here. Everyone says the economy is not doing well. They also want clear signs from the government that they will do something to help their situations. At the core of that is property. The Property Market has absolutely heard peoples paper wealth, household wealth, and confidence. The deflationary environment, 15 consecutive months of deflation on wholesale prices at the factory gate. We have had four or five months now of cpi deflation. There is a worry that there is a policy disconnect going forward. One person told us that they are looking from their leaders for a sense of hope. That is anecdotally what im hearing. The data suggests that the private sector is not spending. They are not confident right now of this recovery. 60 of national gdp comes from the private sector. 80 of urban jobs come from the private sector. It has been a rough three years through covid zero from the crackdown on big private Enterprises Like alibaba and other tech companies. So confidence might take some time to recover. Haslinda and eric, realistically, what can be expected from these meetings . Expectations are so high, the room for disappointment is as high. Steve mentioned the growth target for this year. The market consensus is the target will be around 5 . But remember, 5 this year is still harder than 5 last year, given last year was boosted by the lower base during covid zero. Even if we have the same target this year, that will mean the government has to do more to achieve this target. Another thing we want to watch is the fiscal budget target for this year. We would expect some higher headline numbers, but if you consider unspent money from last year overall spending should be much more this year, and we think the government should focus on spending the money as quickly and early as possible. And try to avoid the lack of spending we saw last year, which was a drag to growth. That is some key points to watch for this year. As xi mentioned, the high court of growth, is important for the market. Will they tell specifics about what is highquality growth . What is the area they want to promote. Property in the past. We look forward what is the new Growth Engine for china. Haslinda in terms of policy tools, what is china likely to tag, structural reforms, and if it is fiscal stimulus, how big a bazooka can it be because china has been conservative. Unless they set a target higher than 5 , we will see a bazooka of stimulus. The stimulus will be incremental, stepbystep. Depending on market conditions. But achieving 5 target is much harder this year. So they have to do more than last year, but we dont think they will do as much as a bazooka type of stimulus some of the investors are e xpecting. Haslinda the equity markets are up three weeks in a row. The big question is whether those gains can be sustained. What is needed for that. Front and center what market wants to see out of this big meeting is how authorities assess the level of risk when it comes to property. What financing support will come on that front, but for supply and demand, and what Development Model china seas for the property sector. They want to see when it comes to highquality growth, what are the key sectors if not property, will that be ev . If you look at the trading today, it is quite cautious. Interestingly, if you look at the property stocks, consumer stocks, the top losers for the onshore market. That shows even though investors want to see those things happening, they are not positioning that much. Today leading the gains is largely the ai plays as well as house care names. Investors are closely watching what happens tomorrow. Haslinda the big question is whether or not Foreign Investors are back. Some say they have started dipping their toes since the start of the year. What are you seeing in terms of foreign appetite . Sentiment for chinese stocks has improved a lot. If you remember january, you had a blowout, but with the National Team taking support, sentiment has improved. As Morgan Stanley put it, the Foreign Fund Outflows has stopped. But it will take more time until we see meaningful inflows coming back in. If you want to see long only funds, especially Foreign Investors, coming back in a meaningful way, they will need more clarity in terms of chinas longerterm planning in terms of Economic Growth and the property sector going forward. Those signals will have to come out from the meetings this week. Haslinda just one final question before we let you go. You have come to china for the last 20 odd years. Is this mpc meeting different from the other mpcs you have covered . Its not different in structure, obviously this is a regimented affair. Some have called it in the past a rubberstamp body. It is more critical now because of the size of the chinese economy and the role china plays in the global economy. Also at a time when china is facing multiple headwinds from different fronts. Not only economic, with property, the private sector and the like, but also geopolitically. Thats another number we will get tomorrow, the budget deficit excuse me, the military budget. Thatll give an indication of how Important National security and internal security is, as well as outward security is to the chinese leadership, which we all know xi jinping has put an emphasis on security. I wouldnt say it is any different, but the stakes are probably higher now that xi jinping last march at the mpc secured his precedentsbusting third consecutive term as president , after the Third Party Congress the previous autumn where his chairmanship of the party, the general secretary was also secured for a third consecutive term. So he has taken on a bigger role, an outsized role if you will for a leader in china, at least in comparison to the last several decades after mao zedong. So there is more responsibility on him and his team of loyalist, including li qiang the premier, who will deliver his first work report tomorrow. Haslinda all against a challenging backdrop. Our chief north asia correspondent Stephen Engle in beijing along with eric zhu from Bloomberg Economics and Charlotte Yang in hong kong. We speak to the chairman and cio of one of asias largest independent Wealth Managers for his outlook. Later, we check on indias appetite for travel with cleartrip, and the destinations that are proving most popular. We are leaving you with a nasa spacex crewed Mission Launch set for 11 53 in hong kong. That was delayed from yesterday, initially slated to be launched. Crew8 consist of three american astronauts and one russian cosmonaut. We will bring you details shortly. Keep it here with us. This is bloomberg. Haslinda welcome back. Heres a look at the week ahead. Chinas National PeoplesCongress Begins tuesday. Officials are due to unveil the nations growth target for 2024, with full set the tone for government policy the rest of the year. Were watching Inflation Numbers out of japan, philippines, south korea and taiwan. It remains inflation. Fed chairman Jerome Powell will deliver his semiannual monthly polisario testimony. It is affected to provide markets more insight on the u. S. Central banks rate hikes policy. You have heard from many fed officials saying they are in no hurry to cut rates. Thursday, President Biden will deliver his state of the union address. We will have special coverage on bloomberg tv. And the ecb said to hold rates steady as it awaits more evidence that inflation is under control. Lots to digest. As get more with sam rhee, chairman and cio of independent wealth manager, endowus. For the moment it is about china. How crucial is it, or has everything been factored in. We saw three weeks of gains for china. Sam as many people have been commentating, it is a huge week for china. There is growing expectations and that is what leaves the market rebounding. Whether this is the dead cat bounce or the bottom of the market, and we start seeing this rally have some legs, we will have to wait until be announcements come out. I would err on the side of caution and say i dont think that will be anything really surprising on the upside. So the expectations are likely to be either met or will be disappointed. Haslinda can china sustain that rally . It is based on expectations china will see rate cuts in the coming months. Sam there are a lot of headwinds at a structural level. We know these things now, whether these are prices the most important thing. Valuation suggest it is low and many of the negatives we are familiar with now, so maybe it is priced in. Now it is up to the government because for china, the governments policies and rhetoric will be very important for sentiment. Sentiment is really bad. I talked to my friends in china and they said there is no hope, which is a strong word. It is deflationary what china is in. It reasserts those kind of structural problems. We need the government to come out with strong messaging, whether through fiscal or monetary stimulus. Or with a strong growth target. I think there will be limited in trying to do that, but lets hope. Haslinda even though some say there is no hope. Others argue we have seen the worst for the chinese market. Would you be adding exposure to china over the next 12 months . Where is your neck on the line. Sam i do have a contrarian streak, so i am always interested in things when there is value, and when things are going badly. Especially when sentiment is so bad, that is when you start looking at interesting asset classes. China is that asset class. So there is interest in that sector. But we have to see more stronger sustainable good news. Haslinda chinese bonds have gone gangbusters, among the best performers, on the premise that those rate cuts are coming. Do you see that happening . Sam that is one area where the market maybe has run ahead of itself. China interestrate policy is beholden to the fed. The fact that the fed will not change its rhetoric, powell i dont think will change tone this week, therefore, it is unlikely to see significant sentiment boost on that front. The Chinese Government and the central bank will not be able to move before the fed because of capital flight risk. If that is the case, the expectations of rapid Interest Rate hikes will probably diminish. Nevertheless, china bonds were price for failure, many sectors in that asset class, therefore there is a case that the valuations are effective enough for investors to go back in. Haslinda the nikkei 225 reaching 40,000 for the first time, what a turnaround for japan. Our gains sustainable, where does it go from here . Sam there is a lot of positive sentiment. Maybe a little exuberance, but there is enough legs in the market, there is enough earnings, the economy is looking good, Capital Expenditure and consumer recovery. A lot depends on this wage negotiation season. If that goes well with a 3. 55 kind of increase, the boj will normalize rates, which is positive, and they will maintain a relatively easy Monetary Policy that may fuel continued upside. Haslinda the boj will move in march or april and what happens to japanese assets . Sam they look good despite what they do, one rate normalization and they are done, not continued tightening. They are fine with the currents are remaining weak to support their export base and domestic demand will be supported if wage increases can be secured. Haslinda the weekend has been mindboggling, especially with expectations that the boj will exit negative rates. Can the end see a boost the yen see a boost if the boj were to come through with what is expected . Sam i dont think so. One rate increase will not change the tone. It is the rate differential with the u. S. Dollar and the feds actions which determine where the yen will go rather than what the boj does. Haslinda we wait and see. Thank you sam rhee, at endowus. Plenty more ahead. This is bloomberg. Haslinda we are keeping tabs on oilrelated stocks on the back of opecplus extending oil cuts to the middle of the year to avert surplus and shore up prices. Cosmo shipping and santos also up and petrochina training in hong kong up more than 2 . The cuts of roughly 12 Million Barrels a day will remain in place until the end of june. That is propping up oil stocks. We are also keep an eye on asia chips. They are seeing a run in mondays session. We are seeing sk hynix up more than 5 . Hanmi semiconductor higher by 14. 5 , after betterthanexpected profit, demand for ai has been in focus and that has gone gangbusters. I want semiconductor also up 5 right now. Gains for the msci aipac index up. We have the mpc this week which will dictate sentiment in china. The fed chairman Jerome Powell will be speaking and that will have the trajectory of f haslinda china markets just heading to lunch. You are looking at live pictures out of beijing. Traders bracing with an annual two sessions of a preview of governments policy agenda for the year ahead. The csi has been swinging between gains and losses. This meeting is especially important, as chinas trajectory has never been more uncertain. The people inside as well as outside are looking for assurance on the path ahead for china. The focus is beijings planning to counter the issues of deflationary risks and aging population. The csi 300 eking out some gains in the lead up to that event. Take a look at where we are in terms of japan, as it comes back from lunch, we have been ek to 25 breaching we have been ek to 25 breaching that we have the nikkei to tony five breaching that 40,000 psychological level. Investors have been pouring into this market and the gains in the past year have seen japan becoming one of the best performers in the world. The nikkei supported also by the yen with expectations of the boj making exit from the negative rates, we could see a boost to the end. The topix is flat at this point in time. The japanese government is reportedly discussing whether to officially call an end to the countrys period of deflation. Lets bring in our senior economist. Why would an official government call be significant . If the government declares japan is no more in deflationary state, that is going to be a very epic moment. Japan declared it has been in deflation since march 2001. It is a banner for the government and the bank of japan to conduct aggressive fiscal support and easing of Monetary Policy. Particularly what that means for the economics. The declaration the country is finally in a inflationary state deflationary state will be epic for sentiment and policy. Now faced with global inflation, they are doing now. Deflation risk is very low. That is why the government is mulling the declaration of deflation is over. Haslinda in terms of inflation, how are officials assessing japans current inflation momentum . Japan is no more in deflation. I agree japan finally acquired mild inflation at least. Not sure whether japan actually secured 2 , the bojs target inflation, because consumption is still weak. We are not sure how wage growth will be in the next fiscal year starting from april. Because most people paid their attention to spring wage negotiation and labor union negotiation. But it is only less than 20 in the labor union. That means in order to confirm wage growth is pervasive, officials have to wait until the macro data for wages and prices. That will create some obscurity about when the boj, and probably government, will think inflation, particularly the 2 inflation, will be secured. Im skeptical about the status quo. Haslinda all eyes have been on the boj for some time. How could this play into the boj policy decision later this month . Important thing is the report does not say when the government will declare deflation is over. However, obviously if the government does that, that will make the bojs life easier for making a policy pivot because they are comedic getting closely. They try to move in tandem. If the government declaration is happening soon, that will endorse the bojs pivot early, but the jury is still out i think. Haslinda the jury is still out. We thank you for your insight. Global are closely watching chinas npc for fresh policy direction. For an economy facing turmoil in his Property Market, weakening consumer confidence. Stephen engle outlined the priorities at this years two sessions. Early springs crosscurrents in beijing can be tough to read, as china faces a host of economic headwinds ahead of the annual session of parliament, the National Peoples congress. With Property Market turmoil, poor consumer confidence, persistent deflation, destabilized geopolitical ties, along with plummeting fbi and a rocky stock market. Simply put, it has not been a good first year for president xi jinping since taking a president busting third consecutive term last march. The economy is slowly recovering but the confidence have not come back. While beijing replaced the head of the Securities Regulator and cracked down on socalled malicious shortselling. Thanks eased the loan prime rate tied to mortgages and consumers came back and spent mightily during the weeklong Lunar New Year holiday, the best set of spring festival numbers since precovid. But was it enough to turn the winter bears into spring bulls . 2023 has been an unfortunate confluence of inflation and derisking. This year policymakers want to go back in reflation and hopefully reform. In terms of the ability of these measures to change market sentiment, we are slightly more cautious because what is really needed is a change in the inflation outlook for the country and the overall sentiment in the private sector. You have got sentiment which is rockbottom. At the same time, issues of policy credibility. The Growth Engine remains one where it is more manufacturing and investmentrelated. Those might help get to the growth target, but in terms of more sustainable growth, we think it still needs work. The attention in beijing turns to premier li qiangs work report on day one of the National Peoples congress. We really want to say can we go back to like what china started in its are formed back in the early 1980s . More pilot enterprises and the right incentives. Wishful thinking perhaps for Global Investors who got burned by multiple stresses on chinas private sector, including covid zero and regulatory takedown of big tech. We have been out of china for a long time. 2020, very long time ago. For the past year and a half or two we have had no solution. The world is watching beijings next policy move, perhaps at the npc, with great interest. Haslinda this npc is especially important. We have been hearing from guests this morning from our new program, the china show, about what to expect from the meetings. Actually Say Something more firm like we will get to 5 no matter what, then you would expect more stimulus than last year because of such a low base effect last year. If they are more flexible, or go lower and say 4. 5 , then you know they will focus on things like National Security and stability rather than Economic Growth. Growth target, everyone is focused on that. We are not too different from consensus. Were looking for around 5 for 2024. The other big number is the fiscal deficit, for gdp ratio were looking to 3 . China will build a lot of leverage just to achieve 67 gdp growth. Haslinda for all things china, catch the best analysis of everything china on bloombergs the china show with your definitive source for views on asias largest economy from policy to tech and trends, we will have indepth discussions with the newsmakers who matter every weekday at 9 00 a. M. In hong kong, shanghai, as well as here in the lion city. Still to upper come, travel booming in india. We discussed the challenges with one of the countrys Fastest Growing travel firms, cleartrips chief Business Officer will be joining next. This is bloomberg. Haslinda welcome back to Bloomberg Markets asia. Indian stocks trading in just under four minutes. It is off to a positive start. Sensex up 0. 1 . Investors say indian equities can keep that rally going, after the big beat for gdp we sell recently, in excess of 8 . The rupee trading at 82. 86 versus usd. Heres a look at Adani Group Stocks ahead of the open. Adani green energy and related units are offering the first dollar bond since the hindenburg crisis last year. Premarket it is looking like a green day as well. Adani green up 0. 3 . Lets delve deeper. P. R. Sanjai, conglomerates reporter, joins from mumbai. Tell us more about this bond. This is the first dollar bond issue since hindenburg hit the conglomerate with allegations which adani group denied. What this would mean is they have gained confidence, after hindenburg, they have got nearly 5 billion from other investors. This is reinstating they are back with a bang. They are getting a warm welcome from the investor community, they are holding roadshows, and the reception is really welcome. They think hindenburg is a matter of the past. They will hit the market with more such offerings. This is giving more confidence. They have come out with a competitive report to reinforce how to market this green bond. There cash levels have improved. They would be hitting the market with more such offerings. Haslinda truth be told, it is not really about the bond, it is about that prewedding party, the ambanis kicking off a lavish wedding celebrations on the weekend. We know that zuck was there, rihanna was there, can you tell us more about it . To give a connection with a green bond offering, got him a donkey and his family adani and his family were invited to the threeday wedding bash. There were three days of videos and truckloads of handouts precipitate distribute it. People are still watching photographs circulating on social media and various instagram handles of mukesh amba ni, and rihanna was posting with airport staff. And bollywood stars like sharukh khan. All three sharing the stage. There were videos where ambani was sobbing after listening to his son. I head of the prewedding bash, he has opened an Animal Rescue center which is a passion for him. Very interestingly, nita ambani was saying she always wanted to have a prewedding bash at the roots where they built the empire. It has nothing to do with the legacy, but rihanna was there. That will give a lot of momentum across the globe because rihanna performing at an indian wedding was indeed interesting. Haslinda we hear she was paid anything between five to 9 million. But we cant confirm that. Indias annual budget released last month included plans to encourage states to develop Tourist Centers and market them at global scale. Lets discuss this more with prahlad krishnamurthi, chief Business Officer at cleartrip, one of indias fastestgrowing Online Travel tech companies. Give us a sense of the kind of growth we may likely see. Prahlad thanks for having me on the show. The indian tourism and travel market has bounced to almost precovid levels. It is a 50 billion opportunity. The kind of scale it will reach over the next 34 years is noteworthy. We expect almost 14 cagr over the next three years. Almost 1000 plus aircrafts which have been preordered. 25,000 rooms which are still being billed for hotels. Although the market is looking bullish from a tourism standpoint. Haslinda what trends are you seeing, where are indians traveling within the country, what are you anticipating . Prahlad Domestic Tourism has picked up quite a bit. We also have a lot of visa free destinations across india, which is doing well. You have countries like dubai, singapore and thailand which are doing well for indian tourists. You also have sri lanka, we have now malaysia, philippines, all of these are picking up, nepal as well. All of these are doing quite well. You also have a huge boom of Domestic Tourism in india. The Indian Government has been bullish promoting multiple tourism destinations. There are 76 tourism circuits in india. Multiple pilgrimage destinations as well. All in all, quite a have distorted. Haslinda what spending patterns are you seeing when you look at the markets at record highs, we had gdp in excess of 8 , you get a feeling that the indians are richer now. Is that reflected in the spending we see when they travel, domestically or abroad . Prahlad the biggest cohort which started doing well is families. Families, and the expenditure on travel, has doubled from last year. 102 . You have them experimenting with lesserknown destinations. There is a lot of road trips involved and homestays. Overall very bullish from a family standpoint. Budget travelers also are going by 80 . Backpackers, homestays, more road trips, overall quite interesting and bullish. Haslinda how are you capitalizing on that. Are you planning to ipo, raise funds in any way . Prahlad currently, the way we try to capitalize on this market, we are doubling down on two big pillars. One is even though travel is a good expands, there is anxiety around it, so we are trying to produce flexibility for customers. We have a portal which allows you to swap airline timings at minimum cost, so you dont get hit with huge cancellation fees. We are pushing heavily on making travel affordable. If there is a person going out for the first time, are we enabling that person to go to thailand . How are we helping them split their cost across potentially . We are looking to capitalize. We are a privately held firm. Haslinda just quickly. Ipo this year . Prahlad cleartrip india, no. There is still a lot to be billed. We are on track to build a lot over the next three years, we will see after that. Haslinda prahlad krishnamurthi, cleartrip. Keep it here with us. This is bloomberg. Haslinda were taking you to the Kennedy Space center. It is about two minutes to launch. It is a over ram space x and nasas mission to the i. S. S after it got delayed by elevated wins. Crew8 consists of three american astronauts and one russian cosmonaut. The dragon spacecraft in denver is a top a falcon nine rocket and is set to fly in a northeasterly trajectory. We know the first stage booster will target landing at floridas Cape Canaveral space for station. Seven minutes 38 seconds after liftoff, generating sonic booms in the nearby area. This will be the fifth mission for the dragon cap still endeavor, the most for any space x aircraft. A minute before that launch. Once on board the space station, the crew will perform a variety of operational and scientific tasks. We know that elon musks spacex has been providing esther up Lawn Services for nasa since 2020 under nasas commercial crew program. We know there is a rival program by boeing called starliner, but that has yet to get going. That means spacex remains the only commercial spaceflight company capable of sending astronauts to space. Again, if you have just joined us, we are waiting for that launch. Space x announced its launch to the iss after it got delayed on saturday. Well, were counting down to that liftoff. 4, 3, 2, one ignition. It engines full power, and liftoff of nasa crew8. Go space x and go nasa 1. 7 Million Pounds of thrust now propelling crew8. Vehicle is pitching down range. And we are getting good callouts on propulsion. Falcon 9 throttling down to pass through the period of maximum pressure. With that call out, we know that falcon 9 is now moving faster than the speed of sound. 1 bravo. We have got callout. Falcon 9 is throttling backup. Haslinda falcon 9 and crew8 lift off. Faster than the speed of sound. The rockets first stage booster will target landing at floridas Cape Canaveral space force station seven minutes 38 seconds after liftoff. Thats what were waiting for. Take a look at that. Such a fascinating site to see. Of course, we leave you with that vision. That is it for Bloomberg Markets asia. Daybreak middle east and africa is next. This is bloomberg. 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