>> you are watching "daybreak: asia." coming to you live from new york and hong kong. >> australia has just come online. shery: the top stories this hour -- treasuries gain as fresh u.s. economic data backs the soft landing and peaks rate narrative. asian stocks set for losses while oil slides to july lows. alibaba tumbles as it walks back's off plans for units including its $11 billion cloud business, blaming u.s. restrictions on chip sales to china. plus, president biden tells asia-pacific ceo's that stable china ties benefit the world live at apec in san francisco. israel the eight -- annabelle: the asx 200, coming online, fairly muted.

in the bond space, you are seeing a continued retreat coming through and yields telling us perhaps the focus, the perception of investors is really starting to shift away from price pressures, away from inflation and to the effects of the cumulative tightening from central banks and those signals of softness are continuing to feed into the u.s. economy and that tells us perhaps the fed the central bank cuts could be coming sooner than preston -- than priced in. the asx 200, fairly steady. around the rest of the region, the outlook and futures, fairly mixed, but mostly tilted to the downside here. chinese futures, looking for a weaker start. kiwi stocks, already online. we do have two major ipos ahead and asia today. shery: we will be watching those especially at the open and south korea with that ipo coming from the likes of cpro materials --

copro materials. little movement for the s&p 500. we are talking about three sessions of gains, very close to the over about level. the rsi, near the 70 threshold. continued jobless claims rose to the highest in almost two years. so you have job growth slowing, the duration of unemployment increasing. what does that mean for the fed? could we see an end to the hiking cycle while treasuries resumed their climb today? perhaps early reinforcing -- really reinforcing speculation we might be at the end of that tightening cycle. oil at the moment rebounding, .3% after falling to the lowest level since july. with got algorithms accelerating losses. they started with swelling inventories and the failure of key technical support levels. we have seen it reach the 200 day -- breach the 200 day moving

average level. we saw the golden dragon china index for more than 3% in today's session. alibaba, we got second-quarter results, missed expectations, but it was the scrapping of the plan to spin off its cloud computing business and in fact a stunning reversal of corporate strategy, really hitting reset on plans to break up the empire into six parts, which released onto investors. for more, stephen engle joins us now. what do we know about this dramatic reset by alibaba? stephen: this is a bit of a surprise on a friday morning. we are expecting pretty lackluster results -- not lackluster. but the quarterly results are expected to be in line. and they were. but this is really overshadowing what the ceo had to say on the conference call. and that is just a few months after the unveiling of this six- part breakup of alibaba, to

unlock value in the individual divisions, they are kind of having a rethink -- a major rethink, in fact, a reset is the term they are using for their cloud division, an $11 billion business. keep in mind this is coming a month or two after the former chairman and the guy who was pegged to lead the cloud division, daniel, abruptly resigned, leaving this restructuring to the former cofounder and new chairman as well as the ceo. now they have to figure out what's next, and the market is trying to figure out what is next. that is why the stock sold off. watch out for a bumpy ride in hong kong this morning, when shares begin trading here. the stock was down as much as10% . down below $80 a share u.s. per adr. wu says the u.s. is increasing restrictions on chip sales for china and that's forced alibaba

to rethink its plan to break the company into six parts. this is not just the cloud -- a cloud story. they have also announced their grocery division, fresh hippo, they also scrapping that ipo. that also raises questions about the other ipo it applied for and hong kong, logistics division -- in hong kong, logistics division. the market is going to be digesting the news quite a bit. alibaba had been trying to regain its footing following three years of covid 0, 3 years of a regulatory crackdown, they had come up with this plan to break up into six different divisions, to unlock value and individually raise funds on their markets through ipo -- this throws it all pretty much into question. investors, left scratching their heads, obviously. but the key -- here is a quote we can bring full-screen. joseph says the focus has to be on providing cash for future

investments, because essentially the ai world needs tons and tons of investment. keep in mind alibaba platforms host about half of the generative ai businesses in china but 80% of chinese tech companies use alibaba services, including cloud. they need -- alibaba needs access to those high-powered ai chips from the likes of nvidia. if they are going to be cut off from that, they need to reprioritize their strategy right now and that is perhaps generate cash for other kinds of investments. shery: will their business be able to provide that support? i just mentioned about how second-quarter results actually missed estimates. although our focus was completely on this reversal of strategy. stephen: this is the overriding story right now, what's going to be next for alibaba with its six divisions? the cloud division had already -- let's be frank here -- the cloud division had huge

ambitions . had already been signs growth had been slowing. essentially it is easy to blame those u.s. export controls and restrictions on chips. but the signs were already pointing that that division was starting to slow. they had been losing market share for years and also had attracted chinese government scrutiny over potential security concerns. so this is the way one analyst put it -- the best time for alibaba to have sought a public listing for cloud "had already passed." maybe they have already realized the ship had sailed on that. market conditions in hong kong, let's be frank, are not good right now. i think they are just kind of pulling in their assets and saying, let's reassess everything going forward. we will be talking about this for quite some time. shery: stephen engle there and hong kong we are also -- in hong kong.

we are also seeing u.s.-china tensions being discussed at the apec summit in full swing in san francisco. joe biden will be meeting with japanese and south korean leaders following his one-on-one with china's xi jinping. let's get more from annmarie hordern in san francisco. we are awaiting that always fun apec family photo within the hour. but president biden already had a pretty busy schedule today. and murray -- annmarie: he certainly has. one of the events he held was right behind me. he was briefing ceo's. he gave a speech. he was talking to them about what he called the good and straightforward conversation he had the evening before with president xi jinping which when he told them of one of his priorities they now reinstated, military to military communications between the u.s. and china being reinstated, it was met with a huge applause. for the business community here,

which was also greeted with a conciliatory dovish tone from xi jinping last night, when he also got a warm welcome for them -- from them, it does feel like they are trying to pave a way for taking the heat out of this relationship and really just leveling out the tone a little bit, whether it is an economic relationship or military relationship, i don't think there has been any massive takeaways or deliverables, besides the fact that they did meet. and on the frenchs, there were deals -- finges, there were deals like -- fringes, there were deals like boeing. the rhetoric is going to get much hotter once president biden is really in full swing next year in campaign mode. already republicans have criticize how he has dealt with china. shery: how high are the stakes for president biden right now given what you mentioned about the 2024 presidential elections and where the president stands at this point in domestic

politics? and -- annmarie: the stakes are very high. but there is high capital on foreign policy whether it is this huge meeting he had today -- yesterday with xi jinping, or whether it is the israel conflict with hamas, russia's invasion of ukraine, when you look at swing state voters in our bloomberg poll, these are at the very end of what voters care about. what continues to rank high, 41% of respondents say it is the economy, then things like immigration. more individuals want to see money go to the u.s.'s southern border than, say, to taiwan or ukraine or israel. president biden is really going to have to lean into the domestic front, as we approach the election next year. because that is what voters are going to go out and cast their ballot on.

-- shery: still ahead, apple's push to replace a chip and the iphone is falling further behind. sources are telling us it may not happen until 2026. details, in a few minutes. and more on the alpha simplex market strategy, next. this is bloomberg. ♪

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>> we still don't know a lot of things. we don't know how tight monetary policy is. we don't know how long it will take to get inflation down to 2%. the degree of uncertainty is less today than it was 18 months ago when the fed started the tightening process but there

is still -- there are still a lot of questions. shery: the former new york fed president william dudley over the certainty over the fed's rate strategy. we saw economic figures reinforcing hopes of a soft landing and peak rates. our next guest is short bonds. katie kaminski is the chief research strategist and portfolio manager at alpha simplex group. she joins us now. good to have you with us. the rates market has been pretty volatile recently. but we are seeing sort of cooling economic data. what do you think will drive this short call when it comes to fixed income? >> i think the challenges recently, we saw a massive move on the positive side for bonds, a catalyst, the cpi data, but at the end of the day, we are not out of the woods yet. we have several issuance of

u.s. debt. we also need to see how the fed actually -- how long we stay higher for longer. and that means that we had a big reversal but it doesn't mean that the trend is necessarily over. we are seeing really mixed signals from short-term versus long-term views fixed income. shery: how are you factoring in the issuance of government debt as it continues to rise? >> that continues to be a big factor and volatility factor that people are talking about as well, given the amount of volumes of issuance that is forthcoming, you just have to start to wonder how much that is going to push prices and continue to move the volatility in the bond market. we are double the level of volatility we saw two years ago in fixed income. this highlights the fact fixed income is much more uncertain at this point than it had been prior. in the place we are right now, are we going to move to a flatter curve?

can we get that steepener many people are looking for? i don't know how we are going to get there. that's why everyone's confused about what the next step of the fixed-income trade is. shery: which also makes it difficult to tell where the direction for u.s. stocks are but at the same time we are headed towards the holiday season which usually gives a little bit of a bump. what are you expecting? >> if you look at the shorter term view on equities, as been very positive from a sentiment perspective in terms of the moves we have seen. a lot of that has been driven by this relief that we might be at the end of the tightening cycle. but i think what's starting to happen -- you are seeing that today even in the markets -- as the market is saying, if they are done tightening, the reasons why they are done is not that great. so, seeing weaker data, seeing cooler data, seeing a concerned consumer is something that will give people pause going forward. we've had a massive relief

rally, but how long can that stay is really the question that we keep asking, is this a short-term move in a broader bear market or a relief rally that shows we are at the end and moving towards a soft landing type of scenario? shery: that fundamental issue you mentioned this is perhaps not because of a good reason and the economy is weakening, that is already leading to big moves in the energy space. oil right now, at the lowest level since july. >> yes, that's one of the things we are looking at the most. the biggest mover from a technical perspective recently. oil tends to be something that is a first barometer of just potential demand -- demand in economic conditions. it comes directly into the raw commodities. . you don't see it in the equity markets right away. equity markets may remain optimistic longer than the data

would suggest. so seeing oil prices going down as much as they have is really sort of a first indicator that there could be trouble ahead going into 2024. shery: if you are short on oil, is that also an indirect call that you don't expect china's economy to bounce back soon enough? what would that mean for the broader emerging markets space? >> that's definitely the case. those two narratives are connected. the fact that will demand -- oil demand seems to be lower and we have excess supply and things are not picking up as quickly as possible are all linked. he have seen that in the equity signals this year as well, really divergent signals in the equity markets and strong tech moves but your average stock is not looking as good. the same thing in asia. you're are seeing china for example not struggling in terms of its relative strength and how much it has recovered compared to other economies from the current situation we are in with inflation. i think you are getting at a key

point there that those are connected and china -- are connected, oil and china. shery: thank you. if you miss any part of -- missed any part of this conversation or you miss any of the stories we have been telling you about, go to today's edition of daybreak, terminal subscribers go to dayb. you can customize your settings so you only get the news on the industries and the assets that you care about. this is bloomberg. ♪

>> you are watching "daybreak: asia." walmart fell the most in more than a year as it struck a concerned tone on the outlook for u.s. shoppers.

bloomberg's simone foxman has more in this latest earnings report. reporter: the head of the world's largest retailer hitting a sober note when talking about the u.s. consumer. the walmart ceo, saying the dreaded "d" word, deflation. he says the higher prices have been slowing their rise and may even fall in the coming months. that is part of what sent walmart shares down 8% after it reported results on thursday. but it was able to nudge some growth. the company actually was able to raise its profit outlook for the coming year, even though it was less than wall street anticipated. overall, we started to get a similar theme from retailers across the united states, they say sales may fall for the next year or grow less quickly than many had anticipated, but they are all on top of their

margins and makes even better earnings per share than many had anticipated -- -- that was certainly -- the story with macy's and williams-sonoma, the furniture retailer today, both shares rising as well. it was more or less what we heard from target earlier in the week, which did not do as badly as expected, nor did home depot, the outdoor goods and construction materials retailer. we have a lot of earnings to come next week, the likes of lowe's, dick's sporting goods, best buy, american eagle, all this, signs that we are seeing a slowly slowing -- a slightly slowing u.s. consumer after a lengthy period of tightening by the fed and ahead of a very important shopping season. shery: we are also watching apple. bloomberg has learned the company has fallen further behind in its effort to replace a qualcomm chip and its iphones. they say the release might only be seen in late 2025. for more, let's bring in

mark gurman, bloomberg's technology reporter. a long and frustrating journey for apple. what's going on? >> apple has been looking for years to replace the modem chip inside of their phones, the component made by qualcomm today on the iphone that allows them to make phone calls, connect to cellular networks, essentially operate as a phone. that component is super court important. apple has been wanting to build their own. they think they can make it faster than qualcomm. they don't have to pay qualcomm royalties or for the part. they can define it to be more integrated with their main chip. lots of reasons. but they faced some pickups -- -- some hiccups. we are hearing it probably will not come until the end of 2025 or sometime in 2026 at the earliest. certainly another setback for apple in the modem space. shery: what led to all this?

i remember there was this legal battle over royalties. that was back in 2018/2019, they actually settled the case. tell us about the journey apple has taken since then. >> apple thought they really should have only been playing qualcomm about one dollar and change -- less than two dollars per phone. they are paying nearly $10 per phone. the issue comes down to the standard essentials pens, the -- the pens qualcomm holds. apple says it should be free for any company to use. qualcomm says it is prepared terry and they should get paid for it. it has been tricky for apple to rebuild that to not have to pay qualcomm. they have built offices in

san diego in the backyard of qualcomm essentially. they have many teams. they've hired people from companies called mediatech. they have bought intel's modem unit back in 2019. they are throwing a lot of money and resources into this. they will get it done eventually but it's certainly been a winding road. shery: we are also seeing a major reversal for apple when it comes to some texting standards? what's this about? >> rcs, risk mitigation services, it is an mms, so to speak, it gives android users the ability to message with encryption, send large video files, get delivered in read receipts, all the cool stuff that you get on imessage if you are an iphone user. the thing is the android system is not compatible with the apple system so it is two completely different systems. when apple is going to do is the are going to upgrade sms on the iphone to rcs, they will still be the blue and green bubbles and such, but if you are an android user, you will be able to get all the features when

communicating with your iphone buddies, and if you are an iphone user you will get the features when communicating with your android buddies. i can't tell you how many times people on in anger, they didn't get a text from an iphone user. updating their platform to rcs will mitigate or fix all those problems. it's not going to happen until the end of next year though. shery: mark gurman, bloomberg's tech reporter with the latest on apple. we saw in the new york session how qualcomm rebounded on that bloomberg school -- scoop about the modem chip used by apple has been delayed. more to come. this is bloomberg. ♪ dear moms and dads, what you have achieved here today is going to help us and our futures. it is why we're coming up on stage to collect your diplomas.

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annabelle: this is "daybreak: asia." seoul and tokyo, at the top of the next hour. for aussie stocks, we are looking fairly subdued. another range bound session for asian trading so far. it really follows weakness coming through in the u.s. session as well. more of the interesting moves, really coming across in the bond space. you are seeing a retreat across the curve. a pullback in treasuries in the former session. it is about that change in perception of investors. where is the focus, on bringing down price pressures, the focus on inflation? we will be shifting to the focus on softer data coming through. the impact of fed tightening, the lag effect it has, perhaps catching up. your hearing -- you're hearing "the d word" coming up,

deflation. they are not seeing a hike anymore in february. let's change on. the other focus in the session today is on movers. what company specific throughout the session. tech sox, the focus -- stocks, the focus. . the company could be facing a u.s. criminal investigation. the company that supplies chipmaking equipment, we know this is one of the thorniest, most contentious issues, the race for chips and chipmaking abilities between the u.s. and china. shery: just another company caught in the crossfire of u.s.-china tensions, just as seems as alibaba and tencent are -- take a look at the hit they took. . we got second-quarter results from alibaba that missed expectations but it was really the scrapping of the plant spin off of the cloud computing business that surprised investors.

the company saying the recent expansion of u.s. export controls on advanced processors has created uncertainties for its cloud intelligence business, really joining tencent in acknowledging the challenges from these u.s. restrictions. let's discuss with our next guest, joining us in the new york studio. the china internet and tech analyst at barclays. good to have you with us. what do you make of thisvery stunning reversal in corporate strategy coming from alibaba? >> in the last few days, both tencent and alibaba reported. the common theme is u.s. chipmaking has been making an impact on these giant companies in china. while tencent said yesterday the chip ban is going to be ok, they have chips for the next couple of generations of that model but they may have some issues when they roll out the commercialization of the service.

but you heard today alibaba just canceled its ipo altogether because no longer have ready access to those chips. shery: the idea is you get this huge breakup of the empire and you get this very valuable spinoff -- these very valuable spinoffs. and that would unlock value. how painful will this be in the short term and does it make sense in the long term? >> absolutely. i am still in shock. i was very disappointed initially. like you said, this is one of the biggest catalysts for the shares. this is consistent messaging. alibaba senior management has been telling their investor base. i'm sure they didn't want to reverse that decision, due to credibility. but as painful as the decision may be, it may end up being the right decision. shery: we also now have annual dividends. how much will that be? >> alibaba management has said

they are committed to creating returns. why is it the right decision? because they do not want to be constantly under the microscope of both the u.s. government and the chinese government instead of running the business. another ipo is off the table. they said they will remain focused to increasing shareholder return. $2.5 billion as dividend. by the way, we brought back $3 billion in shares in the last four months alone. we still think alibaba's one of the most shareholder-friendly companies, in the space we cover. shery: let's get to earnings. [laughter] it's been completely overshadowed by the fact we are seeing this reversal in their strategy. what about second-quarter results? what were your key takeaways? >> the results themselves were completely in line with expectations. alibaba has a renewed focus in

investing and they have seen very strong growth in user engagement, the number of orders. so the revenue and earnings were more or less in line with what our expectations were. that was becoming a nonevent in a way sadly. the stock was down almost 10% today simply because of that cancellation of the ipo. there was a little bit of worry about delay given the new senior leadership, the ceo, eddie wu, and joseph tsai. we did not and outright cancellation of the ipo, the cloud, the crown jewel of the company. worth almost $40 billion. investors were hoping to get those stairs the second quarter of next year but now they won't have that chance anymore. shery: are you concerned about the pressure on margins? the loss in international digital commerce as well?

>> not so much. because that is a very profitable business. just this last quarter, they reported over 40% a bit on margin -- ebidta margin. the e-commerce industry in china is hypercompetitive, no doubt. both alibaba and jd started $10 billion subsidies, but for the last three quarters, we have seen all these companies have reported better-than-expected earnings. so that shows you how well they are running the business they have. shery: encent -- shery: tencent also did pretty well. how sustainable is that? >> tencent is considered one of the few companies that can weather the storm no matter what

because, like any business, it is clearly not that cyclical. the last three years, it was a down market in china. now they are restarting the pipeline for approval for new games late last year. the next three years, it will probably be a decent year for the gaming industry. and for advertising, tencent added video accounts as new inventory for advertising. that's what they were able to deliver 20% growth in advertising. tencent has a lot of these idiosyncratic growth drivers for next year even if the macro next year ends up being below expectations. shery: good to get your perspectives, ur takes -- yours takes on big chinese tech.

pichai spoke to bloomberg's emily chang at the apec ceo summit in san francisco. >> if you are in a region, unlike the past technologies, take the pc evolution, you after in some ways play catch up. mobile was the first transition i think in asia. i look at android, it would not have happened without all the work we did in asia, be it samsung, taiwan, and so on. but it started leapfrogging. you don't need to play catch up with legacy. ai takes it annexed that further. it is the -- ai takes it the next step further. i think it has profound implications. you all can be as ai native as was happening in the u.s. and so

on. it is going to have a big impact. i think the way you do that is by -- apec countries, you need to have a pro-innovation mindset, you have to embrace it at the start, make sure you have the right infrastructure in the country to facilitate ai innovation. you are thinking about the right balance regulation both from an innovation and safety standpoint. emily: you have met with president biden on ai in washington, prime minister sunak, how do we get to global consensus on smart ai regulation? >> it's not going to be easy ,but i would start from the premise that ai will proliferate. the inherent nature of software -- ai advances will get out to all countries. so it is naturally the kind of technology -- i don't think there's any unilateral safety to be had. we all have a shared incentive

to solve for safety. you could have ai go wrong in one country and in fact -- and it impacts other countries. like limit change. that is true for ai. i think you have to start building the frameworks globally to make progress. i have seen encouraging progress, when the g7 happened in hiroshima it was a good start, you have seen more progress, the u.k. summit last week, the administration at the white house has been leading the way as well. i saw good and encouraging announcements even yesterday for the u.s. and china, to start having a dialogue on ai. shery: that was my next question. should chinese regulators be part of this conversation on ai regulation? >> my sense is, there is no way

you make progress over the long-term without china and the u.s. deeply talking to each other on something like ai. it's got to be an integral part of how you make progress. i think -- i am glad to see it. we have to lay the foundations. the good thing is we are still in the early days of the technology. so laying the foundations now will allow us to work through the tough issues and build a common framework over time. shery: alphabet's ceo, speaking to bloomberg's emily chang at the apec ceo summit in san francisco. we have more to come on "daybreak: asia." this is bloomberg. ♪ (sfx: stone wheel crafting) ♪

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shery: the japanese prime minister and the chinese president are meeting for the first time in a year on the sidelines of the apec summit. the talks follow months of bickering over tips and nuclear waste. our politics reporter joins us now from tokyo, isabel reynolds. how much progress has been achieved in improving ties since the last meeting between the two leaders? reporter: it would be difficult to say there has not been any progress at all. it's been a year of very difficult problems between the two countries, which have turned

sentiments certainly in japan the sourest it's been on china in nine years according to one poll out recently. immediately after the summit last year, japan went on to dub china's security challenges, strategic documents. it increased its defense spending plans which may china uncomfortable. we went on to a series of problems the next year. things like japan putting controls on exports of cap related materials to china. also there's been a dispute over japan's release of the wastewater from the nuclear plant into the ocean. while that has been dubbed safe. china has objected severely and slapped a ban on all aquatic products from japan, which has been a very painful incident for the japanese fishing industry. there's a lot to argue about.

on japan's side, it's been very unhappy about the taking into custody of 17 japanese people on charges related to spying, we understand. particularly -- one in particular is a quite high-profile businessman from estela pharmaceuticals who is still in custody and china. -- in china. shery: given this meeting would come right after the warmer tone was between president xi and president biden, i am assuming we could see more confidence from prime minister kishida in pushing for a better relationship with china? reporter: feasibly -- shery: feasibly what can we expect? reporter: he has the go-ahead, it is ok to move closer towards china, but i think there is a limit on how much it can do.

certainly there is a sign that they are moving closer together on these trade issues. they have set up already this dialogue and agreed at a ministerial level they will have a dialect on trade issues and trade controls which could resolve issues over chips and over the seafood exports. both sides would welcome that resolution there. but they are also talking about more global issues, issues that might not cause so much friction, like working on climate issues together and those kinds of global problems everyone can agree they need to toggle together. shery: our politics reporter, isabella reynolds, joining us from tokyo, as we await this important conversation between president xi jinping and prime minister kishida. another story we're following on one company caught in in the crossfire is applied materials,

falling in late trading after a report that it is facing a u.s. criminal investigation for allegedly violating export restrictions. reuters citing sources the firm is under review by the u.s. justice department for allegedly sending equipment to chinese chipmaker smic, despite not having export licenses. the u.s. has tightened chip export rules to china since 2022. smic, among those on that u.s. export blacklist, but earlier it was revealed they were behind a cutting edge process during huawei's latest phone. bloomberg originals takes a closer look. ♪ >> this at first glance is just a smart phone. but once you know what's inside, it becomes clear it is so much more than that. >> what really changed everybody's view of this device was what was at the heart of it. the microprocessor that was

designed and manufactured in china. >> it is at the center of tensions between the world's to biggest economies. the phone made by huawei represents a breakthrough by beijing as it tries to escape washington's controls on its access to technology and establish a self sufficient chip industry. if the u.s. controls had been successful, than a smart phone -- then smartphone advances such as this would not be possible without importing key components. >> china is more capable than ever of building advanced technologies. >> and that worried of u.s. of -- and that worried u.s. officials. it left them wandering, how -- wondering, how exactly did china do? -- do it? shery: subscribers can watch the full bloomberg originals report right now on the terminal and bloomberg.com. it will be available later friday on youtube.

we will taken out to live pictures of san francisco -- take you now to live pictures of san francisco, we are awaiting remarks at the apec meeting. this gathering continues in san francisco. the largest international event in the city since the united nations charter was signed in 1945. we have seen many meetings on the sidelines including ceo summits, dinners. not to mention we are watching to see president xi jinping sat down with the leaders of the closest u.s. allies, japan and south korea, after his own meeting with president biden on wednesday. this is bloomberg. ♪

shery: you are watching "daybreak: asia." we are counting down to two trading debuts in asia this year. the battery materials producer in korea will come online shortly while the chinese pharmaceutical company lists in hong kong later, already jumping in the gray market. let's bring our capital -- in ou r capital markets reporter. it's been a really bumpy ipo.

they got their initial public offering and sold shares at the bottom of the market range. what's going on? reporter: good morning, shery, that's exactly the case for this company that starts trading in seoul. it was very unique. they started opening books for the deal, 320 million u.s. dollars that were raised with this offering, but it was an extremely delicate moment for ev related names in general. the parent company, ecopro, the main shareholder within the name it is listing today, lost around 15% at the moment the books were opened. a lot of volatility with ev names in general not just in south korea but globally. also a lot of elements adding to tensions that dragged down a bunch of the names that trade in

seoul. after that we had the announcement of the banning of short selling in korea as well. all of this put a hard context for the deal alone. we have demand by institutional investors -- about 20% of them were asking actually to price the shares below the offered range. and at the end of the entire ipo, we saw the final size, the number of shares was way lower than was initially expected. shery: a whole different story for wushi -- wushi xcc, otherwise a standout in the hong kong market. >> that's exactly right. if we see a slump this morning, it would not be surprising. but we are expecting to see a pop in hong kong whenever trading starts. very interesting demand for wuxi xdc.

individual investors were buying and putting bids for this deal way more than what we have seen in previous years in hong kong. it was the first time an ipo larger than 100 million u.s. dollars managed to price at the top of the range here in hong kong this year we have not seen many deals that did well after the listing, and there is high expectation that this will be a very positive start. the gray market is a good indentation, the stock was up 21% yesterday afternoon, in the great market. we will probably see a continuation of this very good moment as soon as street he starts -- momentum as soon as trading starts hearing hong kong. shery: of course we are following those two big ipo's across asia today. we are also following the apec

gathering in san francisco happening right now. we are awaiting president biden making an appearance, giving remarks, and also participating in the apec family photo. this is of course a much awaited family photo that happens in every gathering. this gathering in san francisco has been an event for major leaders, lots of meetings with ceo's and other heads of states on the sidelines. we are also awaiting president xi jinping and president biden to also have conversations with the heads of japan and south korea. we will bring you those live remarks when they happen. this is bloomberg. ♪

shery: this is "daybreak: asia." after marginal gains in wall street, we had treasuries resuming their claim as well. we are very much following chinese tech shares as well. they were under pressure. alibaba missed estimates when it came to the results, but it was the reset of their corporate strategy when it comes to breaking up the empire because of u.s. restrictions, that was what caught investors' yes. -- investors' eyes. also the u.s.-china talks at tha apec summit in san francisco. annabelle: the geopolitical focus is front and center. today in seoul we are watching an ipo very closely here, ecopro materials. you can see the shares, priced

at 36,200 won a piece. that was the bottom end of the range. it is still south korea's second largest ipo of the year but the number of shares cut from the originator plans 14.5 million as well. in has been a lot of wild swings coming through for ev-related stocks in korea. a sector that has sent multi fold gains over the course of the year but the investor frenzy has really started to plunge. still, take a look at the debut for ecopro materials, surging 20% at the start of trade here. we saw the company not only cutting the office size, the amount of shares it was offering for sale, but also lowered the pricing of the shares to the bottom of the range. that big surge, you can see, is off the back of those two factors. ecopro materials, certainly accompany we are watching throughout the session. otherwise we have the kospi

under pressure as we get online this morning. take a look at what we are seeing in japan as we start trading here, also the start of trading for cash treasuries. watching the 10 year yield closely, fairly steady in the prior session. the investor focus is starting to shift right now. we are more focused on the softer eco-data coming through in the u.s., what that means for the outlook for fed rate cuts. you are seeing that off the back of the japanese yen, back down at the 150 mark. a little bit weaker through the session. nothing major standing out. probably a little bit of range bond trading to note. oil is certainly playing into the investor focus as well in the session. you can see the energy index, the slide coming through for that off the back of that big drop in oil in the prior session, heading for a fourth weekly loss. wti, sinking into bear market territory. there are concerns of healthy supplies, rising stockpiles,

offsetting any attempts by opec leaders, saudi arabia, russia to keep the declines in check. you've got brent crude, look at that big drop, down 4.6% as we come online. shery: our next guest says the recent pullback in u.s. bond yields as well as the u.s. dollar is supportive for emerging-markets. let's bring in mr. bryce, group ceo. we have sent investor positioning being very skeptical of the chinese recovery. how much potential is there still for asia? >> yeah, and obviously, we do think we are going to see asian equities do pretty well in this environment and the short-term, but you still have the two major headwinds when it comes to asia and that is emanating from china in terms of the economic slowdown, we are seeing some stabilization in growth on the back of stimulus there, but

still a lot of concern around the investment cycle and obviously the property cycle. that's a major economic headwind. then you have the geopolitical headwinds, which have come into focus with alibaba, in the past 24 hours or so, but also was going on in the states in terms of the conversations there. president xi, talking about giving pandas to the u.s. is probably not what the markets need to hear in its entirety. we want to see a thawing of those relations. we are seeing good signs but still underlying tensions between the two countries which a lot of companies are still caught in the crosshairs of. shery: i thought everybody would like more pandas. [laughter] what do you make of the biden-xi conversations? has it changed market sentiment when it comes to chinese assets? we have seen president xi jinping make an effort to talk to business leaders during the apec summit. >> yeah, i think what we are

seeing is more -- i don't think what we are seeing coming out of the talks of that surprising -- our that surprising in their nature. there are some positive things coming through. talking about military dialogue, etc. that's really important, to reduce the real downside risks to the relationship. but clearly, a lot of challenges there, against the backdrop of people being underway risk assets -- it's actually globally. people are still in the fear part of the cycle but when it comes to china equities, that is very clear. we think the hang seng index is probably at a bottom and can rally quite significantly. we have not broken out of the downtrend yet. our sense is we may see a bounce into year and for the hang seng index. shery: you mentioned alibaba earlier, the sentiment about u.s. restrictions and how challenging that is being echoed

by tencent as well. are you concerned about how this will impact the bottom lines of some of these chinese giants? >> i'm not sure it is just chinese giants. a lot of u.s. companies -- i think this will affect a lot of u.s. companies as well. it's difficult to predict exactly when that will happen and what form it will take and how material it will be but that is clearly an uncertainty that we have to try to factor into market valuations. china has been good at factoring in those uncertainties into market valuation because they are still incredibly cheap. you are still seeing some of the companies that are very integrated into china from either a demand or supply network -- supply chain conversation. they are still expensive valuations. this is something we will have to deal with on a multi-year, multi-decade basis, but at the end of the day of china is

already pricing and a lot of that news, maybe we can see a short-term bounce of relatively significant proportions. shery: in the broader emerging-markets x china, we have seen that child when coming from treasury yields also falling and the dollar also falling as well. how much lower could we go from here? >> the way i picture this environment, we are actually following the northern hemisphere weather patterns. we obviously had a very hot summer in terms of gdp growth in the states. we are starting to see that soften. that softness is likely to have a risk rally and lower yields in the fed becoming less concerned about inflation risks, more concerned about downside economic risks, which leads to equity markets and em markets doing reasonably well and the dollar continuing to weaken. the risk is, when we had into winter, we start seeing the

economy cooling much more than wanted or anticipated, that then could lead us to the left-hand side of the dollar smile so we could see the dollar pick up a little bit and obviously that could be very bad for equities generally. but emerging-market equities as well included in that. for now i think we are still seeing the smelt up -- this melt up worry environment for equities, but not sure hundred predict that for. -- how long to predict that for. shery: markets are not sure where we are headed in terms of easing monetary policy around the world but it's based on the fact we are seeing weakening economies that will eventually as you say hit this market -- these markets. how will valuations andpositioning s help? are you looking at some sectors showing more opportunities?

>> i think from our perspective, obviously the weakening inflation is also an important factor, in terms of improved market sentiment. people don't want the economy to weaken too much. it feels like it is in goldilocks territory. we are probably transitioning to something more sinister than that. from that perspective, it's going to be challenging for investors over the longer-term. that's the way we see it going through. shery: good to have you with us. the group cio at charter standard wealth management. there is development in south korea. belle is following the. annabelle: the ecopro materials leadership committee is breathing a sigh of relief now because after making its trading

to be this morning, three important things to note, a big jump for that stock, but put it in context, it was not only forced to cut the office size, reducing the number of shares that were being sold, but in addition to that it also price of those chairs at the bottom end of the range. you are seeing a search today off the back of what's been quite a complicated and bumpy ipo for the company. so as i said, a sigh of relief for ecopro materials this morning. that's want to watch throughout the day. another group we are focusing in on particular is chip equipment supplies or makers in japan. we do have applied materials, with a big slump in after hours. we had a report out from reuters earlier saying applied materials which is the biggest chipmaking equipment manufacturer in the u.s. is facing a u.s. criminal investigation, allegedly it has violated export restrictions to china, relating to its dealings

with the chinese chip giant smic. essentially this morning we are seeing a slide. the reaction coming through for some of the big chip equipment makers in japan. certainly that is a big focus of course at the apec summit still underway over in san francisco. shery: coming up later this hour, aston martin's formula one team has sold a stake to a u.s. private equity firm giving it a valuation of $1.2 billion. the carmaker's executive chairman joins us live this hour as they prepare for sunday's las vegas grand prix, the city's first in for decades. but first the latest from the apec summit with xi jinping making pledges to win back foreign investors. we are live to san francisco, next. this is bloomberg. ♪

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shery: welcome back. alibaba has walked back on its plans to spin off and let's it's 11 billion cloud business. for more, stephen engle joins us now. what do we know about this dramatic reset by alibaba? stephen: i've been thinking a lot about this this morning, wrapping my head around why they would walked back this plan they released back in may 2 essentially break alibaba up into six different units to unlock value and potentially list individual units on their own behest. they are now all of a sudden walking it back within about two months after the man who was appointed to lead the cloud division, daniel j., stepped down.

the cofounder and the now chairman, joe tsai, and the ceo are rethinking this reset -- they are resetting this rethink, however you want to call it, they are pulling the plug on the six-division breakup. essentially on the conference call saying the chip controls from the united states are going to limit it going forward because of the lack of access to the most advanced ai chips, and ai is critical to the cloud division's prospects going forward, an 11 billion dollar division that was expected to go public and be a crown jewel of growth for alibaba going beyond just e-commerce, its bread-and-butter. this does not make a lot of sense. because the other companies we have heard from, whether it's kai fu li, tencent on

wednesday announcing it has stockpiled enough of nvidia's ai accelerators to last at least a couple of generations going forward, kai fu li saying that they have stockpiled chips. what has alibaba done wrong? or do they not see enough of asian going forward to make ai a a part of its cloud division? and therefore cannot bank on that right now obviously unprotected going forward? we have to look deep into this. this is what joseph tsai had to say on the call, saying circumstances have changed, the company must now focus on providing cash to make investments because in the ai- driven world to develop a full-blown business based on a very networked and highly skilled infrastructure, it requires investment. but let's also go into the bloomberg terminal and look at the cash file alibaba has --

pile alibaba has. have record levels of cash right now because this is a company that's kind of pulled back after three years of covid zero, three years of very tough punishing regulatory crackdown have pulled back, they have accumulated cash -- pulled back but they have a cumulative cash. if they don't have the ability to stockpile those ai chips, they want to go heavily into ai, where is that cash going to go to? so many questions. that's why investors were left scratching their heads when this was suddenly announced that the earnings press conference -- the analyst call. people with one hand scratched their head as to why this happened and the other hand hit the sell button. the stock was down 10%. shery: it was an earnings press conference. it really got overshadowed by that news. what did we see in the results? stephen: they were pretty much in line.

nothing shocking and the results. essentially posting an 8.5% rise in sales to 31 billion u.s. dollars, barely exceeding analyst forecasts. probably the most significant news from the earnings itself is the announce for the first time an annual dividend, to the tune of about one dollar per adr, that is $2.5 billion cashback to investors, maybe a bit of an olive branch for rethinking the spin off of the six divisions, not quite sure. but they do have the cash stockpile, they will give it back to investors, $2.5 billion, but the stock reacted to the breakup news -- or the scrapping of the breakup, let's put it that way. shery: stephen engle there in hong kong. chinese president xi jinping, pledging to make it easier for foreigners to do business in his country. he is looking to win back corporate confidence in china.

at the apec summit, our editor joins us now from san francisco. what did president xi offer? reporter: he offered a lot of sort of advice, if you will. he released his speech today. they announced last week xi would announce the ceo's here in person. the comments are designed to reassure foreign investors that they are welcome in china. that they have a rule of law, they protect business in china. more warm jesters, making it easier to access services, medical services, e-payments, things that would make life for

a corporate business worker and china that much better. i guess the big question is, how does this square with the company's [indiscernible] which is not contingent on the u.s.-china relationship remaining stable and not spiraling in a way that could make things volatile? shery: our greater china editor joining us from san francisco. you can get more on that story and others on today's addition of daybreak, at dayb. also available on mobile. you can customize your settings so you only get the news on the industries and settings you care about. this is bloomberg. ♪

shery: tensions rise over taiwan's future. leaders in beijing, washington, and taipei are bracing for potential war scenario. china has spent billions of dollars under xi jinping modernizing its armed forces. but bloomberg has learned that even at the highest levels of the government and military in beijing, doubts remained that it is ready for battle. our senior editor, bill ferry, joins us now. bill, what that our team dig into and what did they learn about how china perhaps views russia's warren ukraine? -- war in ukraine >> thanks. we looked into a whole series -- years worth of speeches that have come to light. we looked at the people's liberation army documents talking about what they see as russia's shortcomings in the u.k. war. it was very illuminating in the sense that a lot of the things that china's military sees as

russia falling short on are the same things that they see their own military having challenges with, the ability for the army and the navy and air force to work together, their reliance on conscripts and many of your key forces -- in many of their key forces. china has done an extraordinary job building up its military hardware and technology in recent years, they now produce aircraft carriers, they have deployed hypersonic muscles, they are rapidly building up their nuclear arsenal, but getting those different pieces to function in a real combat situation is a major question mark, not just for the u.s. and western analysts, but clearly something that xi jinping and the pla leadership are quite worried about. shery: president xi jinping in fact has spent years going after corruption in the military, right? what are his concerns? >> corruption, 10 years on,

corruption still plays a major issue, and his concerns about the pla, he has been one of his military's harshest critics going back to as soon as he came to power, constantly highlighting what he sees as the shortcomings of his military, that includes corruption issues. we have seen unusual turnover at the top tier of his military this year. but it also includes his concerns about the pla's experience. china's military has not fought a war of any kind and almost 50 years. the chinese refer to this as their peace disease. if they were going to consider something like a military takeover of taiwan, that lack of experience could quickly come into play if it turns into extended combat. shery: let's talk a little bit about taiwan. it was really interesting after the biden-xi jinping summit wednesday that a senior official came out and said president xi jinping in fact said they -- said there were no such plans

for an invasion of taiwan. the fact that he had to concretely put it out there and reassure everyone, how do you feel the situation has changed since the summit >>? -- since the summit? >> the pentagon would like to believe that the military is capable, that doesn't mean that they would do it in the immediate aftermath. but he wants them to be able to do that. we saw them ramp up their exercises last year around taiwan to an unprecedented level after than house -- then speaker nancy pelosi's visit. in terms of what came out of this meeting, it was certainly a positive meeting in terms of the optics between biden and xi, but there was a statement that the chinese put out as soon as that meeting ended, and they talked about what they called they -- the reunification with taiwan, that it is unstoppable

redline for them. that continues to be a flashpoint going forward in u.s.-china relations. shery: earlier this year, huawei unveiled a new smartphone armed with a cutting edge processor. the chip was produced by china's smic which has been hit by export restrictions by the u.s.. bloomberg originals takes a closer look. ♪ >> this at first glance is just a smart phone. but once you know what's inside, it becomes clear it is so much more than that. >> what really changed everybody's view of this device was what was at the heart of it. the microprocessor that was designed and manufactured in china. >> it is at the center of tensions between the world's two's biggest economies. the phone made by huawei represents a breakthrough by

beijing as it tries to escape washington's controls on its access to technology and establish a self-sufficient chip industry. if those u.s. controls had been successful, than a smart phone as advanced -- then a smart phone as advanced as this would not be possible without importing key components. >> china now is more capable than ever of building advanced technologies. >> and it worried u.s. officials who more concerned about advanced chips going into military equipment than smartphones. it left them wandering -- how exactly did china do it? shery: we have more ahead. this is bloomberg. ♪ looking to save big on holiday shopping? xfinity mobile has you covered. don't miss your chance to get a free line of our most popular unlimited plan, now through the end of the year. and during our black friday sale, you can also get up to $800 off the latest 5g phones. xfinity mobile is on america's most reliable 5g network.

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shery: we are getting breaking

news out of singapore. the nonoil domestic exports year on year contraction of three point 4% is still any negative territory for 13 consecutive months but it is easing from the double-digit contraction we already saw in the previous month. when it comes to the month on month number, we are growing 3.4%. a smaller growth than the previous month, but we are still beating economists expectations. when it comes to electronics your on your, a contraction of 5.6%. contraction size has been hal ved. this to do with the exports to china. in the previous months of september, what stood out with the nonoil domestic exports to the second largest economy which saw the largest annual growth in nearly two years. we will keep an eye on the

details of the numbers out of singapore. suffice to say the numbers look bette than estimated. let's turn to belle to see how we are sitting up in the broader markets. haidi: in asia -- annabelle: in asia, not too much going on across the different asset classes we are tracking this morning. singapore, we are looking for any signals we are finally seeing the recovery study to be engineered. in the u.s. session it was those signals of weakness coming through for instance in the jobs market, the property sector as well. monitoring the effects of fed tightening on. the economy the expectation coming through we are going to start to see cuts sooner rather than later. bond yield treasuries fell. seeing that in asia this

morning. when you take a look across the rest of equities, fx flat. equities slightly to the downside. movers, there are quite a few interesting ones. take a look at how eco-pro materials is trading in korea. that stock up nearly 50 percent. it just made its trading debut this morning. it is in ev battery materials supply appeared in korea we have watched this surge in ev battery stocks. started to dissipate in the last few months it is an interesting moment for the. company to be listing. aside from the fact it had to reduce the size of its offering and oppression shares. . a bumpy ipo. the stock surging in the session so far. shery: one stock we are watching was starbucks. thousands of bristow's went on strike in cities across the u.s. saying the coffee chain refused

to fairly negotiate with their union. some held signs that said no contract, no coffee. su keenan joins us with the latest. the latest on all of the labor action we have seen in the u.s. su: this is interesting because they do not have all of the stores and workers under the union. it is rather a small percentage. the union is hoping through this action to grow at least its profile. the strike was timed to coincide with the huge holiday promotion red cup day. the reusable for themed cups -- the reasonable cups are given out. the strike was designed to hit hard on this day. it was confined to about 200 u.s. cities. it is the largest by the union to date. they did this last year on the same promotional event. staff at hundreds of cafes are said to have participated according to the union. one new york city location, nine out of 10 workers did not show

up. by midmorning, a dozen people were marching outside with signs. that store had about eight workers inside. most of the managers and around 30 customers waiting for drinks. if you are in new york city and people are not getting their coffee and lattes, it is not a pretty picture. starbucks stock did close higher on the day. if you look at the five day period, the only dip you saw was a couple days ago when the union announced they would stage this one day stoppage at the various stores. starbucks said nearly 10,000 stores were open. they managed to keep them open. this compares to last year when blisters went on strike at 100 13 cafes on the red cup day. this time it was more than hundreds of stores in 200 u.s. cities. shery: what are the key issues right now and is there room for compromise? su: what is interesting is does the union have the power to

create compromise? you have both sides pointing fingers at each other. you also have a key issue of do they have enough staff that many of these stores? the national labor relations board says there more than 100 complaints against starbucks stores. the union is saying starbucks is refusing to fairly negotiate paired starbucks is saying they did not do anything wrong. they are blaming the union for not sitting down for several months. there is a lot of bickering about where they should hold talks and under what circumstances. in the meantime, the union which had been making headway two years ago in adding a lot of workers and some 350 stores to sign up and join the union, that is 350 of 9000 corporate owned stores in the u.s. they are not making a huge dent in terms of representation. they have yet to come up with any kind of contract. the pace of their growth has

been slow. starbucks has announced pay increases for bruce does. it is upgrading its kitchens to streamlines beverage prep. there is probably a lot more we will hear before there is any major headway. shery: alphabet ceo says he expects ai to have a substantial impact on growth in the asia-pacific region. he spoke to emily chang at the apec ceo summit in san francisco. >> if you are in a legion unlike the past technologies, take the pc evolution in some ways playing catch-up. mobile was the first transition in the a share. i look at the android. it would not have happened without all the work we did in the a share. i think it started leapfrogging.

i think ai takes it a step further. you are all in a real position to be right there from the start and have a seat. it has profound implications. y'all can be as ai native as what is happening in the u.s. and so on. in that way is this going to have a big impact. the way you do that is by as apec, you have to have a pro-innovation mindset. you have to embrace it at the start. make sure you have the right infrastructure in the country to facilitate ai innovation. thinking about the right balance from an innovation and safety standpoint. >> you have met with president biden on ai in washington for pre-ministers to knock on ai in london. how do we get to global

consensus on smart ai regulation? >> it is not going to be easy but i would start from this premise that ai will proliferate . this is not the inherent nature of software. ai advances will get out to all countries. it is naturally kind of technology. i don't think there is any unilateral safety to be had. we all have a shared incentive to solve for safety. you all -- you could have ai go wrong in one country. that will impact every other country. in some ways it is like climate change in the planet. now that you know that will be true, i think you have to start building the framework globally to make progress. i have seen encouraging progress. the g7 happened in hiroshima. i think it was a good start. you have seen more promise.

the white house has been leading the way as well. i saw encouraging announcements yesterday for u.s. and china to start having a dialogue on ai. > should chinese regulators be part of this conversation on ai regulation? >> my sense is there is no way you make progress over the long-term without china and the u.s. deeply talking to each other on something like ai. i think that has got to be an integral part of how you make progress. i am glad to see it. we have to lay the foundations. the good thing is we are still in the early days of the technology. laying the foundations now will allow us to work through the tough issues and build a common framework over time. shery: the alphabet ceo speaking to emily chang at the apec ceo's summit apec in san francisco -- at the apec ceo summit in san

francisco. this is bloomberg. ♪ the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com

shery: racing enthusiasts are gearing up for las vegas to host its first grand prix in four decades.

lawrence stroll is the negative chairman of at the martin and joins us from las vegas. it is great to have you with us. an exciting weekend. tell us about what you are hoping to achieve. and your optimism over the u.s. market for f1. >> we are first of all very excited to be here. everyone is excited. they say let's go to vegas, baby so here we are. this is fantastic for the sport. united states has become a very important for our success the last several years. there is no stew the u.s. more aligned than vegas to bring this excitement to the streets. for us, it is a very big part of the global marketing launch. u.s. being our largest market, we are spending a great deal here. we are bringing hundreds of customers. we are doing test drives in the highest performing suv in the

marketplace. we are going to be doing special meals and catering and bringing people to the track. we are spending a lot because there are still significant growth opportunities in this market. there is no more exciting to do it in the city then las vegas. shery: ticket prices, hotel room rates have been tumbling. does that concern you about the excitement around f1 in the u.s. market? >> i'm really not aware of hotel rooms tumbling or increasing. i got here yesterday. there could not be more excitement in the air should there cannot be more excitement of the people into the streets paired i went out for a walk last night for dinner. you could cut it with a knife it is so thick with excitement. i think everyone is looking forward to an exciting weekend. shery: and also the fact you sold shares in the f1 team for the first time to a p firm. why now? >> we have been speaking to arcos for about a year. that me make it very clear the team does not require money.

we are very profitable. we spend to the budget cap. in formula one you cannot spend beyond the budget cap. we are spending to the budget cap and still being profitable. the reason for the minority share of sales, we have been speaking to them for about a year. they are unique in several ways. there are u.s.-based witches great interest for us. they have approximately 30 investments. all minorities in five-star sports team assets whether it be nba, nhl, mlb. have european soccer. with these -- when these 30 investments came to me, and they feel there are some great opportunities working with these 30 teams particularly with the u.s. after spending a year talking, we thought it made sense they would join us and become a minority partner and get our

teams working together to strengthen our commercial rights. shery: executive chairman at aston martin. we'll have to take you live to san francisco because we are seeing apec leaders come out for the family photo. president biden as well with his remarks. take a listen. president biden: we signed a first of its kind supply agreement to help identify supply chain bottlenecks before they become the kind of disruptions we saw during the covid-19 pandemic. we saw what happened in the united states and elsewhere. the semiconductor supply chains dried up in asia and the united states, a lot of it shut down. this is an agreement we put back in place if we had this agreement in place talking about today we would not have had to lay off so many autoworkers because of a lack of semi conductors and many other examples. second, we have concluded an

agreement to accelerate clean energy transition in the indo pacific region including the enabling greater u.s. and private sector investment in clean energy innovation and infrastructure in our partner countries. you heard discussions today about how there are many opportunities and ideas. being able to track -- to attract private sector investment. the solar investments in the philippines is an example. offshore wind in thailand and indonesia. joint investments between the united states and india on energy storage in so much more. third, we concluded an agreement to combat corruption and improve tax administration to make sure our trade and investment is clean and transparent and private companies don't have any worry about their investments being used properly.

that is exactly what we have done. every business leader i have talked to and my colleagues, they are more likely to invest in the region if there is less corruption, more transparency and that is what this agreement does. as i have said, we have more work to do. we have made progress in high standard trade rules that include strongly written environmental standards. we have committed to extending our cooperation to challenges like artificial intelligence, energy security and semi conductors. we are launching a critical minerals dialogue to further strengthen our supply chains and create clean energy jobs. today i am proud to announce the united states is launching what we will call the investment accelerator through our partnership of the global infrastructure and investment. accelerator is going to bring revit capital off the sidelines for major investments in clean energy and technology. you have heard my colleagues say this cannot be done without

trillions of dollars of private sector investment to get hold of this and to give them confidence to make those investments to it is going to create a pipeline of projects in partner countries and match private sector financing with these projects. it is going to give confidence their investment will be made according to the highest standards. government investment is not enough. we need to mobilize private investment and all of the steps that will help unlock this private and zest -- private investment which is necessary for rapid success. put simply, my colleagues and i are driving a race to the top among nations in the indo pacific. to the top on standards, transparency, inclusivity. we are going to be forging a better future. one where workers get a fair shot and a fair share of the value they create. high standards and sustainable growth when out.

we harness the full potential of our people. we welcome other nations who share this vision for the future to join the 13 of us. our economies will be stronger because of it. i would like to turn it over to a leader who has made this partnership possible. prime minister kishida. the floor is yours, mr. prime minister. [applause] >> the prime minister of japan. shery: you are listening to president biden speaking to the broader public at the apex -- at the apec summit. he has talked about consensus on three pillars of the indo pacific economic framework. we will have more. this is bloomberg. ♪

shery: we are following one stock in south korea making its trading debut. echo pro materials after cutting the signs of its ipo and selling shares at the bottom of a market. due to weak demand, seeing the stock trading higher by 70% on its debut. bloomberg equity markets reporter joins us. the kospi and because ike down

today. how broad is this? >> good morning. it could not be better for the company considering what we saw throughout the apo -- the ipo. nobody would expect -- we spoke to a lot of people in hong kong, people watching this ipo and the sentiment was different than what we are seeing today. the company managed to prize the ipo at the bottom of the range. a lot of investors were putting bids below the range. 20% of institutional investors. it was a heartening moment for ev's. the parent company listed in seoul down 15%. a lot of its peers as well. there was a lot of volatility not just in korea but ev names globally. this gives us a good indication may be pressing shares at the bottom of the range was the best

thing to do to leave some room for investors to buy them at the open market and we still hear from some people on the ground it is still very early to say this performance will be sustained given the fact it is a hard moment for the sector as a whole and the company as we know from the ipo. shery: it is how sustained those gains are. what does this tell you about the broader south korean ipo market? could we see or activity especially as you say this could be a strategy. the market at the bottom of the range and then you surprised to the upside. >> that is a very good point because the korean market saw a slowing rate. we had a big deal by an insurance company that was withdrawn at the last moment. this is not an easy moment for ipos anywhere.

it is not different in seoul. what we see as there has been a pickup in activity over the past two months. we had to do some robotics that was a successful ipo. the shares bought on the first day of trading. they managed to sustain the gains within the -- few weeks of trade should say there is optimism things can pick up but we do not have any big deal inside before the end of the year. it would be interesting to see if the gains will be sustained to bring some investors back to the ipo market. shery: we have another trading debut. a whole different story. they sold at the top of the range. what are we expecting? >> also a very good start. that is what we are expecting. this time the indications throughout the ipo was for a strong debut. very good lineup of institutional investors

including the qatari authority. very good demand by retail investors in hong kong. over 50 times oversubscribed so we should be ready for a pop. >> the latest ipos in trading debuts across asia as we follow the apec summit in san francisco. you are seeing the indonesian president speaking. we just heard the japanese prime minister speaking after president biden announced three pillows of the -- three pillars of the indo pacific economic framework. we will now be seeing the family photo being taken in san francisco. this is bloomberg. ♪

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