shery: you are watching daybreak: asia coming to you live. annabelle: we are counting down

to asia's major market opens and australia has just come online. haidi: and the bloomberg economy form begins here today in singapore. the top stories, asian traders are set to jump on a tailwind from wall street where stocks notched their longest winning streak in two years. bets on effective at sending bond rates sharply lower pretty investors are shrugging off attempt to dial back the dovishness amid stern warnings the inflation fight is not yet over. plus, as the new economy form gets underway, we are joined lot and exquisite we buy the climate alpha ceo and templeton global cio. shery: we started breaking news out of south korea. we are getting the september current account surplus widening to $5.42 billion. also the previous month data has been revised upward speed this is being helped by the goods trade surplus which has widened

to $7.419 billion. the previous month's did also revised upwards. we all -- we already saw a bigger drop in imports and a smaller fall in exports. that is perhaps helping the goods surplus widening in the month of september. those gains really helping fuel the current account surplus that has not reached 5.4 to $1 billion. -- $5.421 billion. annabelle: some weakness tells us perhaps it will be a tug-of-war in the session today for wednesday trading. from the one hand you have the fed strength, or wall street strength. on the other hand you have more regional factors and china is one of them given we had worse than expected trade numbers coming out in the prior section. the aussie dollar earlier down

1.3% against the greenback. we had low oil prices as well feeding into it. in the bond space it really is that bet that we are going to see if ed pivot once again. deutsche bank has countered how many times they have seen bond traders, betting on a pivot. this is the seventh time we have seen it happening. swaps indicating we will see around a 100 basis point reduction over the course of 2024. that is the outlook for australia today. let's look at what we are seeing around the rest of the region. kiwi stocks online for the downside. nikkei futures fairly flat ahead of the open in tokyo. but the question really for investors today is going to be what is going to be the biggest factor that will drive sentiment? will it be from wall street, what we heard from fed officials, or will it be the china story? shery: we saw u.s. markets gaining ground today so take a

look at how we are setting up the futures trading session. we are seeing a little bit of pressure. but the longest winning streak in two years for the s&p 500. really defying the fed speak which focused on cooling inflation. we saw treasury yields also climbing down a bed. we had the bank of england and think that rate cuts could be on the table in 2024. so we saw a little bit of gains for the treasury markets. but of course we are following oil as well which is now continuing to extend the declines. the new york session had its worst day since july on week trade data from china. also the federal reserve weighing on sentiment there. but going back to really what this is all about, it is that fed speak. we had a lot of fed officials coming out and focusing on returning inflation to the 2% goal including the minneapolis

fed president neel kashkari. take a listen. >> there is no discussion among me and any of my colleagues about when we are going to prepare to cut rates. the only thing talked about at all is that at some point when inflation is well on its way back down, if we did not back off a little the real rates would be getting tighter and tighter. haidi: things are not getting any calmer as we get to the end of the year. bloomberg economics released a special report. the theme this year is embracing instability. bloomberg economics is forecasting lower growth next year and a recession for advanced economies. this is the bearer of bad news, and this is a report we are talking about, embracing instability, collision course. we talked about letting a path this time last year. things have gotten worse. >> that is one way of looking at it.

i think another way of looking at it is a little while ago we had inflation in the united states and the euro area close to 10%. i think if you told people back then, guess what? we can get you inflation all the way back to 2% with only the mildest of downturns, which is what we are forecasting for the year ahead. i think people would have taken that is a pretty good deal. so yes, we're forecasting a pretty bumpy road for the new global economy in the year ahead. we think the u.s. faces a shallow recession starting at the end of this year and stretching into early 2024. other economies we think are also likely to go into recession. the u.k., one of them. china faces more problems as they try and bring their property bubble under control. pull the pieces together and we think that means the global economy next year grows by 2.7%.

that is the slowest in a noncrisis years since the early 1990's. but if that is the price to pay to bring inflation back from 10% to the 2% target and bring china's real estate bubble under control, well, it is not that big of a price. haidi: howard marks talked about this recently. is this the seachange where you see rates not coming back to 2%? is the new normal just elevated rates, not inflation a 10%, but inflation perhaps higher than 2% and rates will have to inflect that? tom: that is a really interesting question. there has been a couple of structural drivers of low inflation over the period of the great moderation. one of those is globalization. if you have more trade ties between china and the united states, you have consumers in the u.s. benefiting from those very low labor costs in china,

that helps keep prices under control. a second was the erosion of labor power. if workers don't have bargaining power, if they cannot demand higher wages, that come -- takes some heat out of inflation as well. if we think about what is happening right now, clearly it is that high inflation and the fed which is the big driver of rising rates. but structural forces are also changing. china and the u.s. are not friends anymore. so globalization is not going to be a depressing force for inflation. as we see from the worker strikes, especially in the u.s. auto industry, worker power is on the rise as well. so we are not going to go back to that 10% inflation that we saw in 2022. but these structural forces, perhaps that means we are facing a world of higher inflation and higher rates in the years ahead. haidi: do we get to geopolitical tensions yet? last year when we were together we were really focused on the war in ukraine.

now we have another war in the middle east. what is the net impact of these geopolitical conflicts on the broader global macro economy? tom: well, of course the primary thing on everyone's mind when they think about the tragedy which continues to unfold in ukraine and the tragedy beginning to unfold in the middle east, is the cost in human suffering. in terms of the economic impact, the ukraine war was a real shock to the global economy. it was only because europe has not had an unseasonably warm winter last year that russia turning off its supplies of gas did not tip the euro area into recession. the middle east conflict, whilst the cost in human suffering is extremely high, looks to be other the more contained in terms of economic impact. we would really have to see this

expanding into a regional conflict with israel and iran in direct confrontation. if that happened, we would see oil prices rising sharply higher. we would see risk-off in global financial markets. that would start hitting the global macro aggregates, but it is not where we are right now. haidi: taking a trade war out of the equation, taking u.s. china, australia china tensions out of the equation, certainly helps the outlook somewhat. is that a baseline we are expecting, given we are starting to see moves and engagement in the right direction? what are we expecting to hear from the vice president today? tom: well, certainly the relations between china and the united states look a little bit more stable than they did a few months ago. we have had a series of high-level visitors, from the united states to beijing, janet yellen among them. as you know, today at the bloomberg new economy forum, we

have china's vice president as the headline speaker for an audience of global business and global investors. so, these signal that aging and d.c. are attempting to put a floor under the relationship. they do not want to see it sliding down. i expect he will be delivering a message that china is open for business, continues to welcome imports, continues to welcome foreign investments, continues to want to engage with the global investment and investment community. does that mean we return to the kind of go-go years of globalization in the early 2000's just after china joined the wto? i don't think so. but certainly a bit more stabilization, and bit more calmness in that relationship is a positive. haidi: what is the outlook for global trade? tom: you can pick your figure of

speech. clearly there is a kind of human impulse there. there's a human impulse to trade, innovate, and share. no matter what happens in washington, d.c. and beijing, that human impulse is still going to be there. we see it, for example, in the rise of the connected economies. places like vietnam and mexico, which are filling some of the gap created by u.s. tariffs on china. at the same time, when you have these tariffs and sanctions, you do create distortions in the global system and that can only come at a cost. low growth, high inflation. haidi: really great to have you with us. tom orlik with that great report and great insights. and all of this of course will feed into how investors and global markets react. mark cranfield joins us now. the theme this year in

singapore, embracing instability. markets have been writing that wave for a while. mark: yeah. the fed is going to have a very tough job here. there are several reports on bloomberg this morning saying the fed needs more time to assess what is going on. yet traders and investors are not giving them much time at all. they are already pricing for rate cuts by the middle of 2024. the fed will be pretty uncomfortable with that situation. they will not want to be bullied into lowering interest rates before they are ready. he will end up with a situation like the bank of australia this week. it looks as though the reserve bank did not want to hike interest rates but they allowed the market to fully price it in, then they had to respond without too much of a market disruption and the actually have lower australian yields than before the rba even met. it is very important how the communication goes. we have jerome powell speaking this week and you can be fairly sure he will be a bit more forceful. he will want to put the markets

back into a position where it is an even bet whether or not the fed goes higher or stays where they are. they will not want the door to be closed on future rate hikes until they are absolutely sure that the inflation situation is fully under control. the jobs market is weakening a little but not at the pace that would alarm the fed yet. they definitely don't want the market getting the idea they will be early rate cuts in 2 024. so you can expect more people like neel kashkari to come out, jerome powell, to say the fed really is on hold, higher for longer, with the possibility there could still be more rate hikes down the pipe. shery: we will be watching the imf. but in the meantime we have heard these discussions and debate over what really led to that run-up in yields. although now we are going in the opposite direction. do we have any more clarity on what is leading to that rally in yields, and what the effect will be on the fed? mark: you can really go back to

august when fitch issued their report downgrading the u.s. sovereign rating. because though that in itself was not a huge surprise, where it refocused was people on the deteriorating u.s. fiscal situation. imbalances in the u.s. are heading in one direction, it is getting worse, and since then it has deteriorated further. and yet, there does not seem to be a plan of reining in deficits. particularly if you're in the long end of a bond yield market, investors need to know there is a plan. ok, we don't mind increased spending in the short-term, but tell me two, three years down the road when you expect to get that than the proper boundaries. at the moment we are not hearing that from the u.s. and that is making bond investors nervous. they are pricing in for a higher margin of safety just in case the deficits stay there for a prolonged period. then they will need more yield relative to other markets around

the world. that really unnerved the bond market and that is partly why you saw the yields going up quickly. also the uncertainty about how much spending, or how much borrowing is the u.s. treasury going to need. as it turned out, the numbers have been slightly smaller. they are big, but not quite as bad as what investors have been predicting. that is why yields have come down a touch. but we have the same situation going into year-end. the government shutdown in the u.s. is still not off the table. they are talking about very small extensions. so you still have a lot of uncertainty on that part. if you are an investor looking at 30 year bonds, you need to have a much clearer path if you are going to put your money to work for that period of time. shery: let's not forget his u.s. election day as well. perhaps more volatility for the markets to watch. bloomberg's mark cranfield there with his views on the markets. coming up next, talking about all of this uncertainty while

discussing instability as the bloomberg new economy form gets underway in singapore. we speak to best-selling author and climate alpha ceo parag khanna in just a moment. this is bloomberg. ♪

haidi: live from day one of the bloomberg new economy forum, getting underway behind me here in singapore this wednesday. this year's theme, embracing instability, focusing on the underlying economic issues. inflation, higher interest rates, the rise of ai, geopolitics. our next guest runs climate alpha. its ceo parag khanna joins us now. you have been with us almost since the very beginning. we keep talking about the big

themes. in a lot of ways things have gotten better but other things have gotten worse. you cannot choose your crisis. so what is your global view right now? parag: if we go back to your first and the range of the arc of crises, obviously covid jumps out, but the mounting social pressures, inflation, supply chain shocks. now these new geopolitical crises. you don't get to pick on any given day what it is going to be. what is fascinating is how interconnected these things are. with the theme being embracing instability, i like to say almost embracing complexity. the reason i say that is because this is the future of a complex system. everything is related to everything else, even if you don't know how. they will be these tipping points and feedback loops across the world and so we see that happening right now with the ricochet affects in the world economy of the trade shocks and their impact on inflation, on the supply side. and then the after effects of covid in the different stimulus

policies and how that is affecting interest rates and inflationary approaches to inflation diverging, and that having an impact on how economic growth plays out. and we are still in this period where we don't know what is going to happen next. there is i divergence going on with how the u.s., europe, and asia are handling these challenges. haidi: even when there is progress being made there is not going to be stability. how does an investigator navigate that? parag: i think when investigators -- i think what investors are pricing in is regional investigators. that goes back a few years. if you want to look at this regional, what i call continental drift in the world economy, you would go back to the trump administration and look at their trade tariffs on china and their buy american approaches and the inflation reduction act. also the u.s., mexico trade agreement. because of covid you have their

fiscal compact and deepening of the union even moves towards a common european capital market area and so forth. and in asia they -- it is not an accident these happened during covid because there was the big global supply chain shock. regions realized they had to consolidate, which now means different sets of rules in different regions of the world. you want to still be global to capitalize, but you have to play by different rules in each of these three areas at a minimum. let alone in asia, the fact there is enormous fragmentation. i like to say geopolitically, asia is a multipolar region. china, india, southeast asia, and other powers, in an anti-polar world, which includes the u.s., russia, and other powers. that is part of the unpredictably of the world, you have so many more actors in the system.

haidi: you mentioned russia. that is one of the areas that worries you the most? parag: a lot of things worry me right now. what worries me about russia is almost the way in which one is drifting towards accepting stalemate. as someone who studied a lot of conflicts over the last 20, 30 years, that worries me. because a frozen conflict, which is determined political science, is an inherently unstable situation that will persist over time. that will scare away investors. which investors want to go into ukraine? the notion many investors will simply accept russia and go back in and normalize russia the way has been done with saudi arabia, for example. that is also very difficult. so i would prefer we focus on ukraine so that you can move on in a way that is more investor friendly. so that does worry me as well. what is interesting on the other side is we probably have seen a peak in terms of what impact it has had on commodities prices.

again, this is that fragmentation going on. a lot more countries saying if we are going to have supply-side shocks and commodities, both food and fuel production as well, how can we develop new geographies of production in our food, water, energy systems so that we can be less vulnerable to these shocks in the future. that helps to maybe ring fence these conflicts, whether it is russia ukraine, potentially what is happening between israel and gaza in the palestine region right now. because we don't know what crisis is going to happen next. can we somehow limit the spillover effects? that is something asian policymakers in particular are very keen on in order to connect -- maintain economic growth. haidi: ring fencing but happens in china is another big one. in previous crises we have always had a global engine of growth. we don't have that. it is a serious structural slowdown. how does that change the calculus? parag: the positive spin is we have more engines of growth now

than before. look right here to southeast asia as a region bringing in huge volumes of new foreign investment, that is rapidly modernizing, signing up to a lot of trade agreements. remember that european leaders and commercial actors are very regularly here in asia trying to bridge the trans-eurasian trade linkages as well. this region as well as india with its very strong growth can help to offset to some degree china's slowdown. but part and parcel that is looking in more detail about how the supply chains are shifting. that is a key piece of it. but that too can be a source of systemic resilience. if you have more centers of production for semiconductors, automobiles, electronics and appliances, that means slowdown in one place does not mean your supply will be got off. haidi: we could talk for hours. parag khanna dear with us on day one of the bloomberg news economy forum in singapore. much, much more to come. this is bloomberg. ♪

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>> since the beginning of july, this thing has gone way up, almost a full percentage point, and in central bank terms, the financial markets, that is an earthquake, for something to

move hundred basis point in that short a period of time. haidi: that was federal reserve governor christopher waller on the jumping yields, one of the fed officials we heard from of the other night. one of the talk is people on the fomc, the runoff yields, more time is needed to assess where that is done for the fed to work for accurate despite that overnight in treasuries, we still continue to see investors betting on the pullback in rates over the course of the next year. today in the session as well, you see it reflected in the aussie and the kiwi bond space as well, pulling back across the pond here. when you take a look at the market, let's bring up the terminal chart, because it shows us where investors are predicting they will go over 2020 four, cumulatively overnighted to basis points cut for next year, more than double

what fed officials are seeing in their estimates. again, fed officials pushing back on that somewhat, saying they need more time to assess the markets. the moves we are seeing in the debt space so far. in the equity space today, fairly steady so far in the early moments of the session. half an hour now for japan, the more positive now, so he tells us investors are starting to pay attention to that session on wall street the other night, what was another session of gains. haidi: let's take a look at some of the challenges facing market, and bring in monroy check on, cio at templeton global investments -- manraj sekhon, cio at templeton global investments. it would be nice if we would impress stability one of these years, right?

five years since we started this forum of tumult and volatility. how are you adjusting your outlook for the end of the year and into 2024? manraj: well, you know, this subject of instability is something we are all getting used to, but it will stay with us for the long-term. on the one hand, you have these very strong macroeconomic forces, social economic forces we saw that recurring. we saw that with some geopolitical tensions. underlying that, the economy continues to grow at a reasonable pace, which is surprising to a lot of people, given the negative headlines. think we should continue to expect that for the coming years, and at the bottom up level, at the corporate level, we have some amazing forces still happening in the world, whether it is the advent of ai, improvements in health care, whether it is the demographics in emerging markets. so we have this very interesting contrast for investors where the

headlines provide a lot of reasons to be concerned, but when we look at the underlying growth in businesses, the future potential, there's actually a lot to be excited about. we are really trying to reflect some of those long-term growth opportunities and make sure we adjust our portfolios to become visit of some of the macroeconomic risks. haidi: a fascinating time for emerging markets, because we have is the correlation of china dealing with its own pretty significant structural slowdowns. does that mean china is less than an acre -- anchor economy when it comes to e.m.'s now? manraj: yes and no cure china's the workshop of the world. that is not going to change, despite what is happening supply chains over the world. having said that, when we talk about emerging markets, for a long time, as you say, it was anchored around china and everything else was an add-on. we are starting to see, again, a divergence, so when we talk about the performance of

emerging markets, at the headline level, it has been not great, but when you look under the surface, you actually had some countries do extremely well, well china has lagged. and it is interesting that the markets have actually reflected that. if you look at the emerging markets, excluding china, they actually outperformed the dow jones in 2022. they are outperforming the developed world outside of the u.s. in 2023. so emerging markets are actually a very diverse group of countries, with very diverse growth potentials, and you have seen that reflected in the performance of the markets, so china is a concern. china is going through a transition. we have talked at nausea him about some of the -- ad nauseam about some of the forces in china, but we need to make sure we get very interesting growth opportunities outside of china as well. haidi: south korea, mexico,

brazil really outperforming this month. should we really look at emerging markets and china separately now? if we do that, what do you like in that space? manraj: yeah, that is a great question, shery. i think you are right. we should be looking at a whole range of emerging markets, not just china. 2024 is going to be a very interesting year for emerging markets, because of a number of elections. you mentioned a few of those countries. we are going to see elections in taiwan, india, korea, so that will be a set of events that investors are going to be looking forward to. but i think the other thing to point out about emerging markets in this cycle, and why they have actually done better than previous cycles, despite a sharp rise of interest rates, inflation, the geopolitics, is that there has been a few run of reform, both corporate reform,

fiscal reform national reform,. and some of those countries you mention have been at the forefront of those. so brazil, for example, was one of the earliest in tightening monetary policy, and now it is coming out of that cycle. korea, obviously, is a leader in a whole range of new economy areas, whether semiconductors or electric vehicles, some very interesting companies in both of those economies that we like. so i think it is very difficult to focus on individual countries, but i would say there's a whole range of companies across these markets that we are focused on, and we will continue to be focused on, leaving aside china. india is another one where there are some very interesting growth opportunities. so i would encourage people to think about emerging markets as a more diverse group rather than something that is anchored around china or something that correlates across with each other. shery: yet we can't stop talking

about china, the world's second largest economy. what will it take to gain investors' confidence back? i can't keep count of all the measures we have seen from beijing, and that really has not helped chinese assets. can anything we've done while the property market continues cap -- can anything be done while the property market continues to slump? manraj: china is going for an interesting transition with a move from a previous model of growth to something that is higher quality growth, as the leadership would prefer. and that means going through something at the property market is at the center of that. i think in the very short term in china, we can have a catalyst with the upcoming meeting, potentially, between president biden and president xi. with a bit of luck, that happens in san francisco next week, and if that happens in the near term, in a positive frame, that could provide a temporary flaw

in china equities come improve sentiment, which is pretty weak right now, and i would say sentiment towards china is probably the most negative in the last decade, possibly even longer. valuations reflect that. so when we think about china, we are not saying it is in either/or, but looking at valuations, looking at performance of the market, looking at what has happened elsewhere, it would be difficult to completely forget about what is happening in china, because despite the challenges in real estate that you referred to, again, some of the new economy businesses, whether green energy, solar technology, there are a lot of interesting companies in those areas, which are leaders in the world, so we must be cognizant of some of the risk in china was real estate, but we must also be aligned to some of the interesting opportunities. haidi: is that where you are out with exposure to china?

valuations are compelling. where you are cutting exposure, are those funds going toward india? manraj: well, we've always had good exposure to some of those businesses in china. they have continued to follow the market, and valuations have come down. we are adding to those. india has always been a long structural growth story for us. that continues. in the case of india for the near term, valuations are looking a bit extended. as i mentioned before, there is an election coming up, that provides a little but of interest. long-term potential for india is great and it is a standout among emerging markets, but it is important to stay quite balanced across emerging markets for some of the macro reasons that we have talked about. haidi: it is great too happy with us on day one of the bloomberg new economy forum. manraj sekhon is the cio of templeton global investments here in singapore. we have much more, just getting started here at the bloomberg new economy forum in singapore.

we are hearing from other big-name delegates, including fred hu, and others will be joining us as well. this is bloomberg. ♪

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"daybreak asia." we are keeping an eye on the ev space, rivian shares higher after it ended an exclusivity agreement with amazon for access to his electric vans. other operators will be able to negotiate deals with those vehicles, raising its forecast for overall production this year. lucid shares down 3% going the opposite direction after lowering its production forecast to as much as 8500 vehicles, down from the 10,000 it previously expected. third quarter delivers missing estimates as well. and as the world moves toward more renewable energy resources, the ev market is reshaping economies and challenging clinical allegiances around the world. for more on today's big take, let's bring in malcolm scott. in the story, you discussed the

adoption of ev's of the new era for the economy. what is at stake? malcolm: they they love money at stake, and a lot of relationships that will be at stake, jobs won and lost. they cv cumulative value of ev sale reaching some $57 billion worth by vince injury. that is a base case. if you start putting in incentives to ditch those gas guzzling vehicles, that number could be $88 trillion in cumulative sales, from very low levels right now. you can see there's a lot of -- a lot at stake for automakers and economies that rely on the auto industry. haidi: it is causing what you describe as a flashpoint across the global economy. can you give us a couple of examples of how you see this playing out? malcolm: sure. we spoke to reporters across the

world, lots of candidates for these flashpoints, and then we chose just five, but some of these are flashpoint around the environmental considerations that are in place, some more about jobs, and some about geopolitics. to speak about the latter, a couple of examples. in mexico, for instance, president biden's very juicy parks to produce in north america, incentivizing it was of automakers to set up shop in mexico, with big investment plans to try to boost their sales to mexico. in the meantime, china has beaten them to the punch. they are ramping up their sales to mexicans, so that is creating this tension point that is probably going to get accentuated as the election takes place in both mexico and the u.s. next year. in thailand, the tension is between the legacy japanese automakers, which helped turn thailand into what is known as "the detroit of asia."

now, the japanese have a scale back, and they have been a bit slow to move into the ev space. the chinese investment is pouring into thailand, which is being welcomed, as they know they need to keep the jobs flowing there. ev's, we got to remember, take less parts than internal combustion engine cars, and that means less jobs. arrangement to devise investment in battery technologies, to offset that for your industry. for tylan, that is crucial for keeping jobs as a real -- for thailand, that is crucial for keeping jobs. shery: in terms of automakers, who are the winners and losers? malcolm: well, just broadly speaking, from a macro sense, the winners are likely to be the ones that are leading the charge here in ev's. chinese ev's are tending to be lower in cost, so we will probably see more sales to other emerging economies there. the u.s. ev's tend to be more the premium segment, so they may

be more profitable, but maybe less volume. overall, if you look at those numbers, by vince injury or even the bed 2030's, we should see ev sales -- by midcentury century, or even the mid-2030's, we should see ev sales eclipsing traditional cars. the economies that are slow to work into the ev space are probably going to fall behind. haidi: that is malcolm scott there. same with autos, hyundai is investing about $1 billion in a company to accelerate development of flying electric taxis, and it intends to start commercial services by 2028 in the united states. the ceo spoke exclusively to bloomberg about those plans. >> our mission now is integrated

mobility solution provider, in order to be integrated mobility and meet the demand of transportation, we need to combine ground and air. >> can you share your timeline? when do you plan to apply for u.s. faa certification? jaiwon: because it is such a brand-new market, there's really nothing out there. when i say nothing out there, infrastructure and regulation, those are not in place yet. so supernal believes the right product at the right time is the essence of success. so while our plan is by 2028, we would like to enter the market with our safest product. >> what is the biggest challenge

in this new industry? jaiwon: the electrification requires battery performance. as the battery is advancing its capability, we are very excited to see that advancement, so that is both opportunity and challenge at the same time. but it will continue to advance. and then, as i mentioned, since there is nothing out there in terms of infrastructure, we need at least a place to take off and land these vehicles, so we have to work with city and state government to make sure that we define these locations -- we find these locations for airplanes to operate. we need to have the safest air traffic management system to make sure not only vehicles are safe but also the operation is safe. >> do you have a plan to build

any plants in the united states, and how is hyundai going to help you plan? jaiwon: that is one of the very obvious tricks that supernal has with hyundai auto group backing. we will manufacture technologies, not just today's technologies, but as hmg continues to advance manufacturing technology, we will be able to capitalize on that. in terms of a plant, we are still in the analysis and study mode. we are working with several states in the u.s. to figure out where is the ultimate location for manufacturing. shery: supernal's ceo jaiwon shin with bloomberg.

big flaws in the investment style of a japanese billionaire. for more, let's bring in bloomberg's correspondent. we witnessed fun office spaces to filing for chapter 11 bankruptcy. what have we learned about my psycho she saw him -- masayoshi son's investment style? min joong: the lack of due diligence and how it contributed to the valuations which turned out to be a huge bubble. what is important is what happens to what you can expect about softbank and masayoshi son going forward because of the big kind of damage in the reputation, and this perception that softbank and son may not be

capable of managing a big venture capital firm basically, and they really do need some very significant investing successes to be able to kinda changes perception and be able to move forward. shery: we are expecting results soon from softbank. what should we be watching out for? min-jeong: i think given the we work bankruptcy filing, anything softbank has to say about how much exactly money was lost officially and also what will happen to the $2 billion worth of debt, the company still has wework, and whatever the company

has to say about its plans for this significant kind of equity stake in the company. otherwise, fortunately, the group, softbank group, is expected to report a couple of billion dollars in profits, helped by the reevaluation of stakes, so a lot of the focus will also be on what kind of investment softbank and son is focusing on. so we will see what they have to say tomorrow. shery: bloomberg's min-jeong lee with the latest on we work and softbank. we have more to come on "daybreak asia." this is bloomberg. ♪

shery: welcome back. it is day one of the bloomberg new economy forum in singapore, the same haidi bracing instability, and so many different factors to watch in terms of uncertainty in the broader market, whether it is inflation rates, two wars, not to mention, of course, a climate rises -- crisis. haidi: shery, you know all too well. you are usually alongside me talking about myriad challenges. a previous guest said it feels

like every year there's more and more on the plate of policymakers, decision-makers, government leaders, and we are trying to have some of these conversations to try to find a way forward through some of those challenges you just mentioned. this is a lineup of some of the voices we are expecting to hear from throughout the course of this week course we're hearing from the chinese vice president in the next hour. so unusual to get that insight direct from a senior government official. we will be hearing for clues on how he sees china's development and the economy. this is bloomberg. ♪

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the rocket fund takes all of the work that we're doing, all over the world, and looks at the most effective ways, to get resources to them, to get services to them. the idea that we have saved five million people's lives, it's overwhelming. it's everything. shery: this is daybreak: asia. we are coming down to asia's major market opens. have the s&p 500 seeing its

longest winning streak in two years. this -- this despite a lot of fed speak focusing on cooling inflation and trying to dial back expectations of rate cuts. so much uncertainty over inflation, the path of the fed. not surprising where you are, the main theme is in raising instability. haidi: do we have a choice but to embrace instability? this has felt where we have in on this roller coaster the past few years. you are right. when it comes to central banks, there is so much uncertainty about the broader economic environment, how inflation is reacting. the structural elements behind inflation. whether we are going to see the monetary policy transition. the uncertainty plato in australia. we cover it closely with the rba putting another rate hike despite some expectations the fight had come under control. so much uncertainty and that is

just on the economy. we know when it comes to the climate transition, when it comes to two wars in the middle east and ukraine, not to mention the geostrategic competition between the u.s. and china, there is a lot for us to be talking about. shery: a lot of that filtering through the economies, through the markets. you have fragmentation when it comes to geopolitical tensions of supply chains. you have an impact on oil prices and what that means for where the fed and other central banks go from here. you mentioned the rba. we sell the pressure on the aussie dollar because of the expectations we are done in terms of hiking rates. take a look at how markets are opening. we are seeing the nikkei gain ground at the open. about half a percent. this as of continue to watch the japanese yen which has extended its declines against the u.s. dollar. we have seen a little more

strength on the u.s. dollar. put into context after suffering the worst weekly loss since july. it is about watching what japanese policy makers might say about attentional intervention and with a line in the sand is for weakness in the japanese currency. the kospi gaining 9/10 of 1% at the open carrying the risk on sentiment from wall street and reversing the losses we saw in the previous session. the korean yuan strengthening after weakening from a three-month high. haidi: you see the different paths investors are taking at the moment. we had an interesting conversation with franklin templeton earlier about the way forward toward the end of the year and going into 2024 for emerging markets which has been correlated with the rise and the fall, the stabilization for lower growth for longer when it comes to the chinese economy.

it is not a straightforward story given how compelling valuations are in places like china. it is always the risk premium element we continue to talk about. particularly with the uncertainty over the fed and what that does with the u.s. dollar. here in singapore, that is one facet of the conversations that will be taking place in terms of how the smartest decisions will be made when it comes to these financial markets. how projects will get funded. how the climate transition and energy transition will take place in a world where we are seeing geopolitical conflict cast a shadow of uncertainty over the demand for fossil fuels at the ease of the transition into greener cleaner energy. shery: to discuss this, let's bring in mark cranfield. we have just mentioned these challenges the global economy faces. what are you watching in terms of what will move markets in the next few weeks?

mark: especially what comes out of the fed and how they speak over the next few weeks is going to be crucial. they did their paws and their rate hiking cycle. orchids are starting to think there could be rate cuts coming in 2024. i'm sure fed officials, you can hear people like neel kashkari pushing back to some extent. you can expect jerome powell to be even stronger in telling the markets they are not ready to start telling your interest rate cuts are on the way. they have been saying for a long time the higher for longer mantra mean something. they want short-term rates to be 1% or higher. so they can be sure they have got inflation down into the range they want. they were caught out previously when they said inflation was going to be transitory. they don't want a repeat of that. they want to make sure it is going into the area. unemployment situation is changing but not as quickly as they were expecting.

the fed was forecasting it could be closer to 5% by the end of this year. it is heading higher slowly. not of the kind of pace that would justify interest rate cuts in early 2024. you can expect much more pushback from various fed people. that dynamic will be important across asset classes because bond yields will move down more slowly than the market is predicting. it will give it extended support to the u.s. dollar. probably a headwind for u.s. dollars as they get used to the idea 5% is going to stick around for a lot longer. haidi: you talk about the implications across this part of the world. huge implications for the bank of japan in terms of what it is dealing with in the weakness in the currency. mark: at some states the japanese authorities are going to have to decide where is the line in the sand. because he inflation problems

particularly in the food sector. people are getting a happy with that. popularity with the prime minister has declined sharply. a lot of it is to do with the yen weakness. the japanese like to travel as well. it is becoming extremely expensive for them to do so. an unpopular situation at home. of course the ministry of finance can give the order for the bank of japan to stabilize the market by buying yen aggressively like they did last year. the markets can see that coming. they are weary maybe the mof did not have the -- it did previously. would give a strong signal to financial markets japan is serious about defending its currency. that has not come yet. it would not be a huge surprise if we get something together where the bank of japan early next year decide to come out of negative rates. at least move to zero. at the same time gets followed up by intervention in the currency market.

you can tell the comments from the bank of japan chief he does not seem to be in a hurry. that is not a good thing for the yen. haidi: mark cranfield. always great to have you with us. bloomberg's mliv strategist joining us with some pertinent points we are watching when it comes to how these markets are navigating the uncertainties. michael bloomberg, founder of bloomberg lp, is getting this new economy forum in singapore underway. >> in partnership cared for that we owe them a special debt. singapore's president. thank you. prime minister lee and our minister friend sitting in the audience today. there thoughtful collaboration makes this possible and we greatly appreciate them going above and beyond once again for us. we also thank bloomberg's new economy partners whose names you can see displayed on the screen. each of our partners as well

represented here this week. i know we have all been looking forward to the program for this year's forum. there is no shortage of instability in the world as we know. trying to run away from it would only make it worse. we have to embrace it strategically and so the first day of the forum is designed to help us examine the different factors driving instability and the risks they present for the future which give us a good foundation for discussing and developing responses. of course none of this would be possible without you and another us know what the future holds. it is safe to say the situation in the middle east is multiplying already heightened political tensions that have grown around trade and russia's invasion of ukraine. those tensions carried the risk of widening divisions and deepening conflicts. that is a challenge not just for

government leaders but for business leaders as well. back in 2018, we started this forum to serve a specific purpose. to help bridge east and west, north and south by helping more private sector leaders raise their ambitions and tackle challenges that governments cannot meet on their own. i have always been a believer in the need for closer collaboration between public and private sector leaders because each has resources the others don't. too often the private sector views government only as an obstacle rather than a partner. and government views the private sector only as a subject rather than a partner. our mission at this foundation and a forum has always been to break down these barriers and help build bridges across them. it is work we conduct throughout the year including that are

regionally focused gateway conferences which this year we held in ireland and morocco. the bloomberg new economy councils and coalitions that meet regularly are helping company leaders take actions that matches their rhetoric on issues like sustainability, public health and the energy transition. a crucial part of these gatherings is always having everyone's active participation. this forum is not a spectator sport. we are glad to be interactive and encourage everyone to discuss possible areas of collaboration during the breakout sessions and in the one-on-one meetings. we will have chances to gather as a full group to hear from a number of global leaders. that includes john kerry who outlined u.s. priorities leading up to this year's u.n. climate conference of the united arab emirates.

another one from former secretary of state who has been instrumental in shaping this week's program. someone we are lucky to have on the forms advisory board. my good friend henry kissinger. henry has devoted a great deal of his professional life strengthening ties between the u.s. and china. given henry has been alive for over a full century now, it is fair to say he has been doing this work for quite some time. collaboration between the u.s. and china is critical to meeting all the economic challenges we are going to discuss this week from global speed and development to climate crisis. i know henry is tuned in back in new york and looking forward as i am to hearing from our next speaker who has a deep first-hand knowledge of the world's most consequential bilateral relationship. china's vice president. about 18 fit -- 15 years ago when i was serving as mayor of

new york city, the vice president was the mayor of shanghai. he was kind enough to welcome me to that city hall i came to visit to under his leadership, shanghai became one of the world's most dynamic cities. the most effective mayors are always problem solvers and bridge builders. exactly the kind of leaders we create at this forum to showcase. he became vice president earlier this year succeeding a longtime friend of the forum. we are grateful he has taken the time to join us and share his perspective especially as president biden and president xi prepare to meet face-to-face next week. shery: you have been looked listening to michael bloomberg, founder of bloomberg lp. to continue watching the forum, bloomberg subscribers can go to live go. asian markets are trading now.

let's turn to annabelle droulers for more. annabelle: at least trading sentiment in japan because you have the nikkei online. just over 10 minutes into the session. up over half a percent. a couple stocks we are watching. nintendo is one of them. the company has raised its annual profit forecast. it sees operating income at $3.3 billion. ¥500 billion. what it is basing the renewed guidance off of is the yen because their guidance is on a weaker yen value than recently. the company falling short of expectations. the stock up 5% at this point. also to note as well, nintendo is developing a live action film based on the legend of zelda videogame franchise. another time we are seeing nintendo take popular characters onto the big screen. that is the state of play for japan. let's take a look at what is

happening in korea. earlier this morning the data point to note was the current account number. we saw that widening to a $5.42 billion surplus. something supportive for the korean yuan. energy shares in focus. . brent crude likewise. haidi: let's get to here in singapore. the bloomberg new economy forum getting underway. hearing from the chinese vice president speaking right now. >> energy. emerging. having said that, deepening with a new round of industry transformation has brought new opportunities for sustainable economic growth. both countries have a stronger

aspiration for cooperation. in view of the changes of the world of our times and of history, chinese president xi jinping made a major call of building a community with a shared vision for mankind and proposed the global development initiative, the global security initiative and the civilization initiative ushering belt and road cooperation into a new stage of high-quality development. and contributing china's proposals to meet the common challenges of humanity and build a better world. humankind is a community with a shared future. willing cooperation is to ensure a way to success in doing great things that benefit all. china is ready to work with

other countries to sees the development opportunities of our times, jointly address risks and challenges and create a better future for mankind. here, i wish to share with you three observations. first, promote cooperation through opening up economic globalization is a historical trend that is irresistible and irreversible. global trade and investment are slowing down. economic recovery remains sluggish and unbalanced. and various known and unknown challenges are confronting us against the backdrop. elting -- building an open economy is necessary and urgent. unilateralism and protectionism

lead nowhere. the issue of security cannot be overstretched. decoupling, severing industry supply chains and de-risking will all only divide the global economy into many isolated islands. we need to follow the laws of economics, support multilateralism, promote the free flow of production factors in the global market and build industrial and supply chains that are convenient, efficient and secure. china has always been a supporter, participant and beneficiary of economic globalization. after 45 years of reform, the chinese economy is deeply integrated into the world economy. as we speak, the china

international import is underway in shanghai. it has become a platform for china to promote -- and a global public good shared by all. china commits to advancing high-level opening up and steadily expanding institution open up of rules, regulations, management and standards. we will provide more market and investment opportunities for companies from all over the world to share the dividends of china's institution opening up. second, foster growth drivers through innovation. impetus for accelerating economic recovery and progress.

innovation. the new generation of information technology such as internet, big data and ai is advancing with each passing day. new energy and low carbon technologies are developing rapidly. how to keep the world economy growing in the long run tests the wisdom encourage of all countries. since the beginning of this year, china's economy has been rebounding and improving on the whole. with a 5.2% growth for the first three quarters. new growth drivers are emerging at a faster pace. high-tech manufacturing and services also enjoy much higher growth. we need to seize the opportunities.

facilitate the integration of technology with the economy, increased sharing of -- and strengthen coordination and cooperation so as to better unleash the vitality of innovation and inject new impetus into the global economy which will stay committed to the innovation driven approach. vigorously approved -- vigorously promote the transformation of industrial structures. advance low carbon development and jointly respond to the challenge of climate change. third, advanced development through upholding peace. geopolitical rivalry is intensifying across the world and international and regional secured hotspots damaging one

another. all of these speak to the fact that the world is unstable. we live in the same planet. the people of all countries are interconnected and interdependent. the security of one country has an impact on that of others. we need to be more determined to resolve conflicts through dialogue and consultation and create a stable international environment that is conducive to development. the chinese people value peace. the chinese path to modernization is one of peaceful development. china is ready to work with the rest of the world to uphold world peace and security. pursue development and

prosperity for all countries jointly built a modernized world. share the achievements of development, security and all civilizations. and build a community with a shared future for mankind in which everyone's interest is closely interlinked and everyone advances together. ladies and gentlemen, friends, addressing global challenges requires cooperation and joint efforts of all countries. residents using paying has stressed -- president xi jinping has stressed on many occasions whether the united states and china can find a way to the long bears on the future. the world is big enough for the two countries to develop themselves and prosper together.

china always reviews and handles its relations to united states in accordance to three principles imposed by president xi jinping. mutual respect, assistance and willing cooperation. more recently as agreed by the two sides, china and the united states have had more important high-level interactions should these interactions have sent out positive signals and raised the expectations of the international community on the improvement of china-u.s. relations. a stable and sound china u.s. relationship is the common aspect of people. we are ready to strengthen communication and dialogue with

the united states at all levels. properly manage differences and jointly address global challenges. ladies and gentlemen, friends, uncertainties and instabilities in the international landscape can be a motivating force that will encourage us to think creatively, adapt to changes and rise to challenges. let us work with the courage of an ovation. the strength of solidarity and the wisdom of cooperation to turn instability into stability and create a better future for all of us. in closing, i sincerely wish this forum a full success. thank you. [applause]

haidi: chinese vice president delivering the open address to the 2023 bloomberg news economy forum. really interesting threads of conversation. honing in on this idea of de-risking being -- creating problems for the global economy. that china is committed to working. with global partners let's get more analysis on this. our economy correspondent rebecca choong wilkins is here. that de-risking part. committed to working towards a more cohesive global economy. saying that will only create divisions. that is actually interesting. >> that is the element i am picked up on as well. quite a few warnings in the speech. quite a few explicit warnings which we don't always get. warning that de-risking will lead to these divisions. warning against unilateralism that threatens to destabilize.

and again just at the end, these hence about geopolitical competition. rising geopolitical competition and the frequent emerging of the hotspots. economic security and geopolitical security. these risks seem front of mind. shery: i have to say i was having deja vu with what happened last year from the vendor vice president talking about not only the importance of ties with america but also opening up to foreign investment. we kept hearing the words opening up charge china is committed to that. how much has changed since last year. -- since last year? >> the challenge for beijing which it does understand is this increasingly hostile business environment some companies feel they are facing in china. just in recent weeks you have had these arrests across various industries.

the status of apple in china has come under question. even its business prospects too. even though we have had this import export extolling the benefits of what china provides from many markets, the largest market for consumers in the world, there is still this hesitancy. you see that in the drop in fbi numbers for china. haidi: china a supporter and beneficiary of globalization. it paints a broader picture as of get toward the aipac leaders meeting. a warming of relations. is this an economic impediment for china to be able to get along with its trade partners given things are not going so well at home? >> certainly shifting the impression china is the stick in the mud or china is the one being obstructed. implicitly in that revealing it is the u.s. perhaps being the

one that has led to the front nature of the relationship is important. the speech and all these high-level meetings we have seen between the u.s. and china is all about paving the way for what will look like a successful sit-down between biden and xi. both parties want to come out of the meeting looking like they have stabilized relations. that impression china is increasingly a competitor, that is a bit of an issue. haidi: our asia government and economy correspondent rebecca choong wi the power goes out and we still have wifi to do our homework. and that's a good thing? great in my book! who are you? no power? no problem. introducing storm-ready wifi. now you can stay reliably connected through power outages with unlimited cellular data and up to 4 hours of battery back-up to keep you online. only from xfinity. home of the xfinity 10g network.

>> you are watching daybreak asia. neel kashkari says policymakers have yet to win the fight against inflation and while there is some good news in the data, said officials are not talking yet about when to start cutting rates.

>> everyone on the fomc is committed to percent was the inflation target and we have to get it down over a reasonable time. ultimately the economy will tell us how much is needed to get there and i do not know. >> at what point would you believe you have tightened or not tightened enough? >> core pcu is running 2.5% and lower than the six and one-year data so that suggests disinflation is real. if we continue seeing inflation numbers in that range of tooth -- two .5% or lower that would tell us we are on a path back to 2% inflation but if we see it take back up it would tell us the job is not yet done.

i think powell has articulated clearly we are committed to getting back to 2% inflation. there is some chatter that we should raise it but he has done a great job saying we will get it back to 2% and let the gate -- let the data guide us. we have made a lot of progress on inflation. we are not done yet and if we need to do more, we will. >> is the bar to cut just as high? >> there is no discussion amongst us about when we will start preparing to cut rates. the only thing talked about at all is that at some point when inflation is on its way back down if we did not back off a little the real rates would get tighter and tighter and that is real but that is math. >> is there currently enough weakness in the economy to give you percent at that point? >> does anyone look at the last gdp print, for the last 12

months it has been strong and the labor rate is strong. we have seen a huge surge of labor supply come online so i am looking at this and see consumers that are strong. my airplane was 100% full today and will be full tomorrow. i am not seeing evidence the economy is weakening. >> how long will we be into 5.5? >> if we end up with a year-over-year of 2.5% court inflation that continues trending down, that would give me evidence that we should start looking at backing off so the real policy is not getting tighter and tighter because we are clearly on her way back down but i do not want to point to one data series. we will look at a bunch of data

to see with the economy is headed. >> that was neel kashkari speaking with our colleagues. let's get a look at markets. big movers so far. annabelle: nintendo is one of the biggest. but let's kick off with the moves in bond yields because we are tracking the retreat. treasuries fairly steady but we saw a move lower in the prize session and said officials yesterday saying they want more time to assess the run-up in yields but bond traders are betting that we will be seeing cuts from next year and that is the state of play from bond markets. in equities just over half an hour into the session for japan and korea and we see gains coming through in the session so a change in sentiment because

setting up the day we had looked for equity trade fairly mixed but it seems these markets are taking that direction from the s&p 500 that had its seventh day of gains and asx 200 likewise now turns positive for the day. nintendo is being tracked today, it is surging the most since 2020, it has upgraded profit down to the weaker yen and and announced they have a new zelda movie coming out so the stock is up more than 6% at this point. haidi: let's get back to the day one of the bloomberg world economy for them talking about how to navigate ongoing geostrategic risks as we have two wars in the moment.

we are hearing from the minister of investment from saudi arabia and the minister of foreign affairs for singapore. the rise of economic craft and limitations of diplomacy playing out at the moment when it comes to how the u.s. is trying to make their influence known in the middle east conflict with several visits across the region in five days. >> we see the challenge the u.s. has in trying to pull together an international coalition and there is an interesting contrast about how the u.s. is approaching the war in israel versus the one in ukraine. the one in ukraine is -- the one in israel is more difficult to

pull a global coalition around. haidi: we also see the positioning of china to potentially act as a peacemaker and we saw attempts with ukraine that were not successful. how do we navigate the next part as we look at what the endgame is for that gaza strip? what is the worst case scenario for the biden administration? >> that's what antony blinken is trying to navigate, what is the plan after hamas and it seems that washington is the only party right now interested in having that conversation. israel is focused on the ground offensive and other arab leaders are focused on the humanitarian situation. no one is really interested in planning for the future. regarding china, we have seen

china become more active diplomatically in the region and recently had an envoy out to talk with different leaders but in terms of how they navigate going forward the most important role might be behind closed doors in terms of how it talks with tehran, a major partner in the region and a leading concerns of the u.s. is the outbreak of conflict between israel and iran. shery: the study rivian investment ministers speaking now. he's talking about the u.s.-china relationship, saying there is pragmatism surfacing in those ties. the study rivian investment minister also talking about a time of heightened crisis across the world. tell us how beijing-washington relations have shaped in the last year given the ongoing

conflicts. >> geopolitics has been a major area of conversation for the u.s. and china since the beginning of the biden administration and the outbreak of the war in ukraine. conversations between them have revolved around how to manage the conflict and lead it to peace. the same will likely be that case with the conflict in the middle east. washington has urged beijing to use influence in the region to help prevent the conflict from spilling over and i think beijing has every incentive to try to prevent the conflict from spilling over into a larger regional war because china remains dependent on foreign services -- sources of oil in the middle east is the biggest source of that.

china is trying to establish themselves as peacemakers in the middle east. shery: how do other countries position as we continue seeing the ongoing friction between the world's two largest powers? >> it is a good important question, especially for singapore another southeast asia countries that he china as the largest economic partner and the u.s. is one of the largest security partners. there is a tension in navigating the relations between them but what we see from the region is an effort from singapore and other southeast asian nations to play both sides in the sense of maintaining economic ties with china and continuing to maintain strong ties with the u.s. but that is the age-old challenge for many countries.

shery: jennifer welsh joining us from singapore the new economy forum and we are watching another live event. hong kong financial secretory -- secretary delivering a keynote speech at the forum. >> medium to long-term [indiscernible] the site goes that hong kong has gone for in the past has confirmed our unique advantages remain throughout and each time we have come out from the challenge with new strength and opportunities. so in a time of increasing uncertainty and complexity, hong kong presents a window of

enormous investment opportunities with quick potential returns. let me explain. basically three points. new technologies. innovation and technology. hong kong is determined to develop innovation and technology as a core engine of our growth. we released the hong kong innovation blueprint last december outline our mission and direction in this important area and have put money where our mouth is. our government is investing in this area come investing over 200 billion to build, consolidate, and enrich the

ecosystem in recent years. despite the challenges we face, not least the geopolitical situation, the innovation and technology ecosystem in hong kong has grown more vibrant with exciting achievements in nurturing startups, attracting prices and talent and realizing that transformation of r&d outcomes. pick artificial intelligence as an example. it is fast developing and driving revolutionary changes to financial and other businesses but as this data intense, many aia firms are keen to come to hong kong because of our unfettered access to international data and

information. so would many international ai companies because they will be able to access the data here in the future. with the support of central authorities, hong kong is actively working towards cost boundary data flow. shery: next we will speak with bit flyer ceo and his outlook for the crypto industry and where he plans to take the cup any. -- take the company. this is bloomberg. ♪ paying my team with gusto takes just a few clicks. they automatically file my taxes for me too. can i run payroll too? choose payroll without the pain.

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shery: looking at assets across asia, the nikkei being led higher by tech stocks and energy and utility stocks are down now. kospi reversing losses in the previous session, same with the asx 200 which gained one quarter of a percent but kiwi stocks are down 8/10 of 1% and losing ground for a second session on this is all on the back of wall street gaining ground and s&p 500 seeing the longest winning streak in two years and now we have seen risk assets rally across the board and right now

crypto currency pressure after two sessions of gains. haidi: let's stick with crypto. cryptocurrency space is eager to rehabilitate their reputation. joining us is the ceo of bit flyer. it has been a challenging year for the crypto space and you reinstated in march with the pledge to expand and take the company public. can you give us an update on progress? >> not just in japan, but the u.s. and europe. the japanese crypto market is hot [indiscernible]

we have strict regulations to protect consumers in japan. haidi: is this the right time for international expansion, given the decline in trading? >> we have seen some but the spot price of bitcoin is rallying and has recovered a little bit. haidi: what markets are you most interested in? four global expansion? >> we do not specify each crypt name but we want to expand

cryptocurrency to u.s. and other countries. haidi: are there specific countries you are most interested in? >> hong kong. they are welcoming of the web three countries. haidi: what is standing in the way of the ipo at the moment? what are the biggest challenges right now? >> global expansion. the u.s. is very difficult to acquire the users for bit flyers. there is a challenging tax refund -- reform in japan. trying to change tax rules to issue the ipo when the company issues tokens they used to charge a lot of taxes but now

they are reducing the tax to support the company's. haidi: you have often said tight regulations in japan are beneficial when it comes to a company like yours. are there concerns about compliance in other markets like the u.s.? >> yes. we have invested a lot of money to the compliance and have a very strong governance at the bank so japanese regulations are being discussed now and [indiscernible] protect the customers. the fdx incident gave the marge -- market a huge impact in u.s. but with japan there is nothing because regulations protected all assets of the clients.

we need to monitor every day. it was very effective to protect so maybe the u.s. will discuss about how they regulate and protect consumers but the customers asset is the most efficient. haidi: does that give japan enough of an advantage to attract the international investors? >> japanese regulations is very strict. more strict than the u.s. so they need to adopt the japanese regulations that may cost.

haidi: looking ahead, what will be the biggest factor in terms of what happens with cryptocurrency? will be regulatory or central banks? >> the biggest topic is spot etf add people expect that will be approved in the u.s.. regulation is one of the topics. in the eu there was a new regulation that will be settled soon so u.s. will be the last country they need to state stricter regulations and there is illegal exchanges globally but they will be slow down after the regulations. haidi: really great to have you

with us, we appreciate your time. much more ahead from the bloomberg new economy forum and we will hear from more big-name delegates. some of the conversations taking place in singapore this year. this is bloomberg. ♪

shery: the japanese yen continues to weaken as the boj government speaks in parliament saying the potential side effects of why cc include fx volatility and the wage inflation cycle is still weak but he sees it gradually taking place and we have just seen wage growth strengthening for the first time in four months and what -- one of the things we be watching at the forum, the global labor market cn big changes. -- seeing big changes. haidi: i want to bring in yvonne man. you are listening to the vice president china's speech a little bit talking about the idea of de-risking being better

for everyone. yvonne: it was certainly not a positive spin, delivering it ahead of when biden and president xi meet next week. talking about de-risking is not a good thing so that is a big theme here and a lot of china experts will join us in the next few hours. just

(sfx: stone wheel crafting) ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪

it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. we have been able to reach over 100 million people impacted and affected, and at risk of hiv. the rocket fund takes all of the work that we're doing, all over the world, and looks at the most effective ways, to get resources to them, to get services to them. the idea that we have saved five million people's lives, it's overwhelming. it's everything. >> it is 9:00 a.m. in singapore and the bloomberg new economy form is underway. plenty of panels are going on this morning with glob