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Speaker 1: This is Bloomberg Daybreak Asia for this Thursday, February ninth

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Speaker 1: in Hong Kong, Wednesday February eight in New York and

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Speaker 1: coming up today. US stocks fall as FED officials keep

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Speaker 1: up calls for further rate hikes. Walt Disney will cut

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Speaker 1: seven thousand jobs in a major new restructuring and credit

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Speaker 1: sweets Eyes three hundred eighty million dollars in bonuses for

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Speaker 1: its top executives. The US continues efforts to recover the

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Speaker 1: alleged Chinese by balloon. China says Cloben numbers have dropped significantly,

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Speaker 1: while Ukrainian President Vladimir Zelinsky visits England. End in global sports,

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Speaker 1: Manchester United MISSUS a chance to move up to second

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Speaker 1: in the league table on Dan Schwartsmen, I'll have global

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Speaker 1: news in sports that's all straight ahead on Bloomberg Daybreak

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Speaker 1: Asia on Bloomberg eleven and three on New York Bloomberg

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Speaker 1: nine one, Washington, d C, Bloomberg one six one, Boston,

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Speaker 1: Bloomberg nine sixties, San Francisco, Sirius XM one nineteen and

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Speaker 1: around the world on Bloomberg Radio dot Com and via

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Speaker 1: the Bloomberg Business Act. Good morning, I'm Doug Prisoner, and

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Speaker 1: I'm Brian Curtis. Here are the stories we're following. Today,

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Speaker 1: Disney CEO Bob Iger announced plans for a dramatic restructuring

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Speaker 1: of the company. Disney will cut seven thousand jobs as

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Speaker 1: it seeks five and a half billion dollars in cost savings.

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Speaker 1: I got to discussed more of the changes on Disney's

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Speaker 1: earnings call. We will aggressively curate our general entertainment content.

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Speaker 1: We will reassess all markets we have launched in and

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Speaker 1: also determine the right balance between global and local content.

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Speaker 1: Will adjust our pricing strategy, including a full examination of

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Speaker 1: our promotional strategies. As part of the changes, Disney will

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Speaker 1: be reorganized into three divisions, its main TV and film businesses,

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Speaker 1: the ESPN Sports Networks, and the theme park unit. I

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Speaker 1: said the reorganization is intended to improve profit margins. Separately,

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Speaker 1: Disney announced to upbeat financial results, led by big gains

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Speaker 1: at the theme parks. Losses in the streaming business more

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Speaker 1: than doubled to about one point zero five billion dollars

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Speaker 1: from a year earlier, but that was about two hundred

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Speaker 1: million better than what management had forecast three months ago.

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Speaker 1: Disney shares a trading higher, up about four point eight

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Speaker 1: percent in after hours. More hawkish messaging today from the Fed.

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Speaker 1: We heard from Governor Chris Waller. He basically said that

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Speaker 1: rates need to remain higher for longer, more so than

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Speaker 1: some are currently expecting, and at the same time, the

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Speaker 1: head of the Minneapolis Fed, Neil cash Cary, was saying

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Speaker 1: that despite some hopeful signs on inflation, more work needs

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Speaker 1: to be done. There's not yet much evidence, in my

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Speaker 1: judgment that the rate hikes that we've done so far

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Speaker 1: are having much effect on the labor market, and we

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Speaker 1: need to bring the labor market into balance. So that

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Speaker 1: tells me we need to do more. How much more,

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Speaker 1: I don't know for sure. Neil Cash carry there who

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Speaker 1: went on to say the Fed will likely need to

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Speaker 1: hike that Fed funds RACHEL around five point four percent

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Speaker 1: in order to bring inflation down to that two percent target.

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Speaker 1: Brian and Doug to me, this was the standout line

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Speaker 1: New York Fed Chief John Williams, saying that the policy

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Speaker 1: may need to be restrictive for a few more years

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Speaker 1: for the Fed to reach its inflation target. He also

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Speaker 1: noted that the FED officials peak rate forecast from December

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Speaker 1: are very reasonable. Policy Makers had projected interest rates to

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Speaker 1: rise up to five point one percent at the media

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Speaker 1: and level this year. It implies a couple of more

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Speaker 1: rate hikes will occur. In Williams said that basis points

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Speaker 1: that that kind of move seems about the right size.

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Speaker 1: I think these twenty five basis point steps allow us

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Speaker 1: to both adjust policy based on the new information and

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Speaker 1: what's going on and get us to to our goal

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Speaker 1: as we need to. Obviously, if the situation changed, you know, significantly,

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Speaker 1: we would we would have the ability to move quicker

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Speaker 1: than that, or or a just course. But right now,

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Speaker 1: I think the basis point increase we just put in

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Speaker 1: place seems like the right size to adjust policy, at

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Speaker 1: least given one I'm seeing today. As John Williams speaking

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Speaker 1: at the Wall Street Journals CFO Network summer. Speaking separately,

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Speaker 1: FED Governor Lisa Cook said that officials were committed to

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Speaker 1: curbing inflation and that further tightening was warranted, although Cook

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Speaker 1: favored maintaining a gradual approach. In India, the Addanni group

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Speaker 1: is planning to prepay five hundred million dollar bridge loan

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Speaker 1: that is due next month. We have that story from

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Speaker 1: Bloomberg's Annabel Drulers. Adani had been talking with several banks

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Speaker 1: about refinancing part of the loan, but the company decided

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Speaker 1: instead to prepay it. Last year, A Danni borrowed four

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Speaker 1: point five billion dollars to purchase assets of wholesome cement.

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Speaker 1: The lenders included Barclay's, Standard, Charted and Deutsche Bank. Talks

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Speaker 1: on refinancing the debt started a week before Hindenburg Research

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Speaker 1: accused Adani a stock manipulation and fraud. That's according to sources,

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Speaker 1: who also told us that when these accusations were published,

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Speaker 1: discussions with the banks stalled. This marks the second time

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Speaker 1: in a week that Adanni has taken steps to prepay

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Speaker 1: debt as ad fins to regain investor confidence. In Hong Kong,

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Speaker 1: I'm Annabel, Rules, Bloomberg, Daybreak Asia and earlier today in

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Speaker 1: the Indian session, shares in seven of the ten companies

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Speaker 1: within the ADNNI group umbrella ended higher. The flagship A

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Speaker 1: Donnie Enterprises Brian rallied m We're only credit Sweez plans

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Speaker 1: to reward its top executives bonuses of about three hundred

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Speaker 1: eighty million dollars, but it's conditional. The payout will be

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Speaker 1: made if the bank's restructuring succeeds more From Bloomberg yvon Mann,

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Speaker 1: A source says the bonuses are targeted at the top

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Speaker 1: one of the firm's staff, that's about five hundred senior managers.

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Speaker 1: The Financial Time says the award would need to be

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Speaker 1: approved by shareholders at a meeting in April. If approved,

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Speaker 1: it would be the second year that Credit Swiez has

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Speaker 1: offered a long term reward. A year ago, I granted

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Speaker 1: staff about five and forty million dollars worth of one

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Speaker 1: time awards. Now, even with the added bonuses, overall, the

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Speaker 1: firm is considering cutting its bonus pool for two by

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Speaker 1: as much as fifty percent. That says it was forced

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Speaker 1: to raise capital after a string of losses in Hong Kong.

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Speaker 1: I'm Yvonne Maham Bloomberg Daybreak Asia stock did gain about

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Speaker 1: six tenths of one percent, but it has been under

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Speaker 1: enormous pressure over the past year, down about two thirds

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Speaker 1: Well doug the Disney restructuring is perhaps one of the

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Speaker 1: more interesting stories of the day, along with some of

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Speaker 1: those comments from Fed speakers. Disney has been successful with

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Speaker 1: some of these previous restructurings, particularly when they added the

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Speaker 1: online streaming business, and then also when they acquired all

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Speaker 1: those assets. Here's another one. Yeah, and Bob Iger back

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Speaker 1: at the Helm obviously, and the board we know was

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Speaker 1: very dissatisfied with what Bob Chapeck had been doing earlier.

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Speaker 1: So here comes Iger restructuring in a major way, three

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Speaker 1: separate units now And as a part of the call

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Speaker 1: with analyst, Igor is saying that Disney is not engaged

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Speaker 1: in conversations about spinning off e SPN. Now that's one

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Speaker 1: of the divisions, Brian. There's been a lot of talk

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Speaker 1: about the possibility that Disney would free itself of ESPN somehow,

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Speaker 1: moving it away from the overall Disney entertainment operation, but

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Speaker 1: at this point, Eiger doesn't see that happening. Yeah, it's

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Speaker 1: difficult to say because ESPN is very valuable. Obviously, the

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Speaker 1: theme parks are very valuable. They were extremely profitable. Here

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Speaker 1: profit was up and the revenues ESPN lost money. But

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Speaker 1: longer term, you know, live sports is about the biggest

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Speaker 1: crowd pleas are really of all television programming, So there's

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Speaker 1: a way to make it work. I think they're just

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Speaker 1: looking for that way. One of the things I thought

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Speaker 1: was also curious is that two million customers left the

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Speaker 1: Disney Plus platform in the last quarter, and a lot

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Speaker 1: of that had to do with the hot Star platform

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Speaker 1: as the result of it losing the broadcast rights to

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Speaker 1: Are you ready for this Indian cricket? Yeah? Alright, Doug,

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Speaker 1: it is time for Global News. Will the G seven

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Speaker 1: member states be sanctioning Chinese companies for helping Russia? That's

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Speaker 1: a big question. Dan Schwartzman has Global News in the

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Speaker 1: nine in the newsroom in New York. Dan, Yeah, Brian,

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Speaker 1: it's a big debate whether the sanctioned companies in China

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Speaker 1: also included around in North Korea for assisting Russia with

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Speaker 1: parts and technology that could be used for military purposes.

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Speaker 1: Now discussions are just in the early stages, but a

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Speaker 1: package of sanctions could be enacted by February, which happens

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Speaker 1: to be the one year university of Russia's invasion of Ukraine.

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Speaker 1: Now the G seven is aiming to cut off the

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Speaker 1: supply of materials that are traveling through third countries that

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Speaker 1: haven't signed up for sanctioning Russia. Now Iran is accused

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Speaker 1: of supplying those drones. North Korea set to be sending ammunition.

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Speaker 1: Chinese firms believed to be selling technological components. The US

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Speaker 1: continues efforts to recover the alleged Chinese by balloon off

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Speaker 1: the coast of South Carolina, with Secretary of State Anthony

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Speaker 1: Lincoln saying that the US has shared information about the

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Speaker 1: balloon with dozens of countries around the world. Pentagon spokesman

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Speaker 1: Brigadier General Writers says, the Chinese spy program has been massive.

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Speaker 1: When you look at the scope of this program, UH

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Speaker 1: and the fact that we know that these balloons have

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Speaker 1: been spotted and what we now can subsequently assessed to

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Speaker 1: be Chinese balloons operating over at least five continents and

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Speaker 1: regions like Latin America, South America, uh Southeast Asia, East Asia,

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Speaker 1: and Europe. Again, it demonstrates why for the Department of

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Speaker 1: Defense that China remains the pacing challenge and something that

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Speaker 1: will continue to stay focused on. General Writers says the

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Speaker 1: US was though able to learn more about China's spying

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Speaker 1: program as the balloon crossed the country. Now, China has

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Speaker 1: denied the balloon was for spying purposes. They continue to

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Speaker 1: insist it's a weather balloon that kind of flew off course.

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Speaker 1: According to China's Center of Disease Control and Prevention. The

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Speaker 1: number of COVID related deaths drop by night percent from

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Speaker 1: January's peak levels. On Monday, a hundred two deaths were

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Speaker 1: recorded at hospitals across the mainland. That's down from a

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Speaker 1: high of almost forty three hundred on January four. Severe

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Speaker 1: hospitalization cases have also declined from a hundred twenty thousand

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Speaker 1: on January five to just two thousand. Ukrainian President Voladimir

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Speaker 1: Zelenski making a surprise visiting England earlier today and meeting

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Speaker 1: with Prime Minister Rishi Sunek as well as King Charles

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Speaker 1: the Third. Zelenski also addressing lawmakers in parliament and praising

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Speaker 1: the resolve of the country. You didn't compromise Ukraine, and

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Speaker 1: hence you didn't compromise your ideals, and thus you didn't

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Speaker 1: compromise the spirit of these great islands. Thank you very much.

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Speaker 1: Zelenski also visiting Paris and meeting with French President Emmanuel

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Speaker 1: mccron and German Chancellor Olof Schultz. He's next expected to

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Speaker 1: head to Brussels to talk with the YOU leaders in

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Speaker 1: the summit, as well as addressed the European Parliament that

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Speaker 1: will be Thursday Global News twenty four hours a day,

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Speaker 1: powered by more than twenty seven hundred journalists and analysts

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Speaker 1: in over a hundred and twenty countries. Um, Dan Schwartzman,

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Speaker 1: and this is Bloomberg. This is Bloomberg Daybreak Asia. And

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Speaker 1: Brian curtis here in Hong Kong along with Rashad Salama,

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Speaker 1: and we are looking at a guest, Carol Pepper joining

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Speaker 1: a seer, founder and CEO of Pepper International. So we're

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Speaker 1: at the FED. Carol, our boss says that we are

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Speaker 1: data dependent, and then we have a members say we're

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Speaker 1: going to keep policy restrictive for a few years to

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Speaker 1: make sure we get inflation to two rattle markets today,

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Speaker 1: it's probably going to rattle markets, um for some time

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Speaker 1: to come. Sell Um, I don't say sell, I mean

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Speaker 1: I think you know the they were some of the

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Speaker 1: members of the Fed seemed to be afraid that Powell

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Speaker 1: sounded too nice and that the market was taking the

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Speaker 1: bit in its teeth again and starting to run, and

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Speaker 1: they were trying to, you know, calm things down. So

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Speaker 1: it's a it's a funny balancing act, you know, be

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Speaker 1: all these statements. But I do think they will follow

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Speaker 1: the data. I do think, um my, my guess if

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Speaker 1: you asked me to put a number on it, they're

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Speaker 1: going to stop at five point one, maybe five point

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Speaker 1: three if things are really bad. But I don't see

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Speaker 1: them going to six like some people are starting to bet.

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Speaker 1: I think that's a bunch of traders who just love betting. Um.

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Speaker 1: I think that we're actually in a pretty good position

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Speaker 1: right now, and it's not high enough to kill everything entirely,

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Speaker 1: but it certainly has slow things down, which is a

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Speaker 1: good thing, so Carol, I mean, the thing is they

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Speaker 1: would also probably be staying at that level for a

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Speaker 1: period of time that Do you think that the markets

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Speaker 1: are getting that message. Yes, I mean they know they

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Speaker 1: don't want it to be so they want to rally.

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Speaker 1: They wanted to go down. They want the markets to run.

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Speaker 1: They always want that, but you know, until inflation comes

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Speaker 1: down a bit. I do think it's interesting to watch

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Speaker 1: all these corporates jumping on the bandwagon together to do

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Speaker 1: cuts so that that will help the employment rate, which

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Speaker 1: they're all complaining about is too high. I mean, the

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Speaker 1: employment participation rate, by the way, is still not where

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Speaker 1: it was pre COVID, so they're not looking at that number,

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Speaker 1: which I think they should because there's just been a

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Speaker 1: lot of early retiree and the baby boomers and not

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Speaker 1: that many workers replacing them from the millennial generation. So

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Speaker 1: you know, a raw number of how many people got

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Speaker 1: a job is not completely helpful. But you know, I

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Speaker 1: I'm much more positive, I think, and I do think

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Speaker 1: this year will be good. This is the first full

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Speaker 1: year after COVID, and I think the world is starting

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Speaker 1: to come back online, which is a good thing. I

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Speaker 1: just like to stir things up a little bit, uh. I.

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Speaker 1: I do think that at the FED you had the

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Speaker 1: chief come out and uh he played the role of

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Speaker 1: the adult in the room at at the news conference

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Speaker 1: after the meeting, and he was the adult as well

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Speaker 1: in the interview with David Rubinstein. But then you have

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Speaker 1: all these parents come out and scolding you, wagging their

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Speaker 1: finger about about markets. Says I just like to stir

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Speaker 1: that up a little bit. Um Uh. Do do you

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Speaker 1: think that that the FED will unify its policy or

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Speaker 1: they like it that different people are saying different things.

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Speaker 1: I have no idea. I've never been in a closed

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Speaker 1: to our meeting with the FED, but I do thinkbviously

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Speaker 1: they could have stopped the multiple messaging if they want to.

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Speaker 1: But that's you know, that's America. We have people with

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Speaker 1: lots of different opinions and they like to mouth off.

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Speaker 1: So I think that will continue to be the case. Um,

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Speaker 1: and I do think, you know, don't I fear not,

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Speaker 1: keep calm and carry on. That's how I look at it, Carol.

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Speaker 1: I wanted just to elegate your portfolio. And you've got

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Speaker 1: for the risk part of your portfolio, you're looking at

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Speaker 1: cybersecurity pad with AI. At the safe part, you're looking

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Speaker 1: at dividends yield, in other words, to tell us how

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Speaker 1: you divide those up into what precisely. Yes, Well, Um,

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Speaker 1: first of all, it's very very difficult to ever catch

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Speaker 1: the turn between growth and value. So as you guys know,

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Speaker 1: I manage money for family offices, people with over a

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Speaker 1: hundred million dollars, and we don't try to second guess

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Speaker 1: that turn. It's almost impossible. So I I tell people,

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Speaker 1: don't overthink it. Just go half and half half in

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Speaker 1: growth and half in more value or cash flowing type

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Speaker 1: of stocks. Um. And and within those sectors, look at

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Speaker 1: what's what makes sense for you. So, for example, on

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Speaker 1: the cash flowing side, we're looking at dividend, aristocrats, utilities,

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Speaker 1: waste management, even oil and gas dividends are still going

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Speaker 1: to be strong and healthy for a while. And then

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Speaker 1: on the growth side, you know, when growth starts to run,

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Speaker 1: it's always all about tech. I mean we've we've seen

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Speaker 1: even this year, as I was speaking about last month.

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Speaker 1: You know, tech is going to run. It will run

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Speaker 1: the minute things start to look better. And right now,

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Speaker 1: there's two very interesting sectors that will do well even

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Speaker 1: if we're in a tighter market on the growth side,

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Speaker 1: and that would be both cybersecurity and AI AI because

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Speaker 1: they're finally making breakthroughs about how to use that technology

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Speaker 1: in a better way. But again AI could be very,

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Speaker 1: very dangerous to the world, so you must pair it

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Speaker 1: with cybersecurity. And that's why I do think companies like

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Speaker 1: FORDA Ford you know, they're forarded that they're doing really

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Speaker 1: well right now. Why because they put together Senten, their

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Speaker 1: Microsoft damp pay Pal to fight cybercrime across governments, across countries.

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Speaker 1: You know, this is a whole new world we're runching

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Speaker 1: into and we can't stop that. It's going to happen,

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Speaker 1: so you might as will make money on it. This

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Speaker 1: is Bloomberg Daybreak Asia, your morning brief on the story

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Speaker 1: is making news from Hong Kong to Singapore and Wall Street.

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Speaker 1: listen live each day on Bloomberg eleven three oh in

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Speaker 1: on Bloomberg dot Com. I'm Brian Curtis and I'm Doug Chrisner.

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