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. the idea that we have saved five million people's lives, it's overwhelming. it's everything. haidi: asia equities are seeing gains.

israel launches a new phase of war. delivered an improved restructuring plan. we're seeing 3/10 of a percent higher. we are seeing asian stocks set to climb, all about central breaks. pushing back against

expectations that seem to be picking up with some of those retarded we are not seeing too much of a move, we're seeing some broad upside. shery: take a look at futures. the treasury sinking, bond futures trading.

payroll numbers are coming out this friday, gaining ground, take a listen. >> it would be premature two mood that we have achieved a significant stance. we are prepared to tighten policy further if it becomes appropriate. shery: israel is pushing its offensive into southern gaza after a temporary cease-fire, it is now bearing down on the city of khan yunis.

let's get more from ian. we know in the recent weeks u.s. officials including antony blinken are putting more pressure on israel to not repeat the same scale of destruction, the civilian death toll that has escalated in the north. is looking like israel was trying harder to do that? hamas embeds itself in the civilian population. >> israel says it has been taking into account mornings

from antony blinken to not repeat the huge destruction in the north. it is creating safety zones where people can get out of harm's way. the whole thing is complicated. the south was already really crowded, now it is especially crowded with who knows how many people down there. it's going to be very difficult to avoid casualties. we heard from the idf said very clearly label -- it's going to

be a tough fight. shery: there are many hostages left inside of gaza. >> at this point it does not look good. hamas has issued a number of

statements saying there will be no more exchanges until there is a permanent cease-fire. shery: we are watching evergrande, it is facing what it should be his final winding up. annabelle joins us with the details. >> spelling out some details. in the time since they are

trying to push about 18 months ago to get its money back in the hearing has been postponed, it is scheduled about 2.5 hours. the judge said they will not issue another adjournment. it will mean liquidation.

the perception of evergrande has shifted over time. once you shift out for equity, fewer creditors are willing to negotiate with you. to do that, it needs to prove they have a biden -- buy in. shery: if we were in fact to see a liquidation, without be recognized in mainland china?

>> from the heart of where innovation, money, and power collide, in silicon valley and beyond, this is "bloomberg technology." with emily chang. >> we know that they signed a deal that would pave the way for some chinese cities to recognize proceeding carried out in hong kong, so far the implementation has been spotty. if we did see a liquidation, would it take place at all? the cues are likely to come from the central government in beijing. we do know we see more creditors turning to help them out.

there are a number of different things coming over the next couple of months. shery: the chinese president says shanghai needs to deepen reforms. according to tv, he made the call during its visit last week. elsewhere in china, financial debt levels have a concerned analysts. let's get you to a check of asian markets.

teachers are looking negative. futures are looking more positive. it said it is not fair value. presents a big opportunity.

the comp proposal -- current proposal is being opposed and they held 17%. >> such a big decision and we will be watching. coming up next, vanguard group. this is bloomberg.

haidi: let's take a look at the u.s. economy. the return of striking workers. cpi data is testing decisions, we are expecting holds. other eco-data.

a lot of what happened is jay powell pushing back on rate cuts. we so treasury yields in the dollar slipping further.

we are getting a spot gold. our next guest is the chief asia pacific economist. there is a lot of uncertainty in the end of the cycle, the idea.

>> the uncertainty puts a very high bar. good inflation data, some of the pieces are very volatile so the central bank may want to be cautious. one thing i say is inflation is above the central bank target. we always know that the last mile is most difficult.

we don't expect interest rate cuts until the second half of next year. haidi: is it also that we are seeing here in australia a lot of factors are domestically. >> food and energy prices is quite global. it is video socratic.

on the other hand if you look at labor costs, that's going to -- haidi: at the same time, there are significant risks to growth. do you agree? for australia, we expect growth next year, we are not expecting a recession. the slowdown in management policy, on the other hand,

australia is getting boosted from china's recovery. i think australia is enjoying continued immigration with increasing demand. that is why we are seeing no recession and australia. on the other hand, we don't think the soft landing is coming. >> there are a lot of missing things -- interesting things happening. also now, the financial regulators are looking at local government debt risk.

>> i think the key risks are the property crisis, private developers, local government for financial risks and local government. towards the end of this year, the government has been looking at financial stability risks with all kinds of swaps to tackle the risk. on the local government side, you see leverage on the balance sheet, they will swap local

government debt. if you look at the aggregate, it is slightly above 100% so you could say ok there is leverage to tackle the local government risk. haidi: the property bubble >> this is something they don't want to burst. what i see that this moment is

provided more liquidity and support. we probably will see more government control, but in the end, the industry needs to consolidate anyway so there will be developers that fail. ensuring the orderly restructuring or liquidation. haidi: really great to have you with us. more to come. this is bloomberg. ♪

shery: surpassing the record set back in august of 2020. we are seeing softening of u.s. economic data you want to be able to provide your child with the tools or resources they need. with reliable internet at home, through the internet essentials program, the world opened up. fellas, fellas. that's how my son was able to find the hidden genius project. we wanted to give y'all the necessary skills to compete with the future. kevin's now part of this next generation of young people who feel they can thrive. ♪ ♪

su: origin investors due to vote on a $12.6 billion takeover by the consortium later monday. the proposal on the table has been opposed by origins largest shareholder.

let's get more from harry brompton. we are seeing the stock trading a little lower ahead of the goat -- vote that we are not expecting to go through. >> more than likely it will be a total failure. at 2:00 p.m. this afternoon. yes, it throws a years worth of work basically down the drain. there is not much hope for a christmas cliffhanger either. brookfield made a statement friday evening that we were among the first to report that was basically saying that if this fails, there was always the question if they could come back in a potentially hostile form, or try to do a deal without the board's approval or recommendation. it appeals like they -- appears that they have no current intention of that. they want to step back to re-examine the economics of the business, what has happened and changed with energy markets at the moment breed the federal government recently instituted a

construct -- contract for a different trading scheme to help incentivize and bring more renewable energy to market on the margins. that really changes the base of the business. a fair bet. you can look at pi gl trading down about 10% since at the news came out. it's not just a negotiating fiddly for brookfield and erg when they say there is material consequence to this. haidi: it's a big deal. i negotiations for 13 months. how did we get to this point? harry: yes. a lot of people, bankers, lawyers, executives and corporate teams working overtime around the clock for a full year on this. it is very hard to see this being the absolute end event. for now, there's not a lot of hope. what it speaks to in my view is i think that the enormous power that everyone is beginning to

wake up to globally and especially in listed company land regarding the power and increased assertiveness of australia's superannuation industry, the pension industry hereto to define the contributions game has built up to more than $3 trillion now and it's becoming more and more active on the mna scene. last week, a couple big super funds, ism, a contortion of super funds that are wrecked -- in invest directly in infrastructure and super announced it they would spend about 30 billion in the u.k. alone over the next few years. i think about what has happened and what we have seen commit the sophistication -- scene, and the sophistication of canadian super annual pension funds in global financial markets and the absolute king makers they are. this is the first real proof it is starting to happen in australia. haidi: let's look at the latest

out of cop 28 in dubai. the u.s. finance president says the country will contribute $3 billion towards the united nations climate fund to help developing countries adapt to climate change on top of $9 billion in new commitments from other nations including the u.k. and japan. recent conversations at cop saw attention to the reluctance of the wealthy countries to contribute more to climate financing. exxon mobil and remco are leading a pledge by 50 oil and gas producers to cut emissions from their own operations. the pack was unveiled at the club 20 and conference in dubai and the deal is controversial because none of the firms agree to reduce oil and gas productions, instead planning to stem releases of methane and start -- stopper teams layering of natural gas. the world bank is working with 15 banking chiefs delaware risks for investors so more money can flow into clean energy projects in the developing world. the world bank president says

the briber -- the private sector investment is focused on creating an attractive securitize of all asset class for investors to put up large sums for climate deals. the group is working on a more simple fight set of guaranteed products that can be used across different markets. the psi all launched in june including blackrock chief larry fink, akzo ceo thomas mobile and hsbc a head know when. >> bill gates sango world will probably not meet the paris agreement goal of keeping the rise in global temperature below two degrees celsius. world leaders will take stock of the climate goal at cop 28. he spoke with francine lacqua on the sidelines of the event. bill: we will not hit the aspirational target. you can do the math on 1.5. and even 2.0. that is not that likely. fortunately, if you stay below

three, a lot of the ill effects people have heard about do not happen unless you are really irresponsible and let it get up to the higher range. francine: many people say it is innovation and talking -- also making sure we do not waste energy with the things we have now. how are we doing on that? if you see all of the different components, trying to stick to the paris agreement, is there any low hanging fruit we should think about? bill: there are lots of things in energy efficiency. that is primarily in rich countries where energy has been so cheap that we leave the lights on at night. we construct things where you have to drive long distances. for most of the emissions, they are coming from middle income countries. what they are doing to build roads and shelter is providing sort of the basic level that i think we would all agree everyone should have access to.

and, so, we cannot get rid of that. we can make it -- we can have some efficiency. a good example of that is if the current windows were never designed to avoid the heat leaking out. so if you are willing to pay for an improved window, it is called lux wall and there are others, then cover your heating bill goes down. francine: what about food and agriculture? bill: food is fascinating. because, food is a source of emissions, particularly cows, rice, fertilizer. but also, the biggest negative effect of climate is that poor farmers that live near the equator, their crops will fail far more often leading to mounted attrition, which leads

to vulnerability in -- and way more death. we have to innovate agriculture to get rid of emissions and also so these farmers can have food and can have -- can continue to have their life expectancy go up. haidi: bill gates speaking with francine lacqua on the sidelines of the cop 28 summit in dubai. how u.s. futures are trading early in the asian session, not seeing a lot of movement after stocks and bonds climbed on the friday session. the s&p 500 hits the highest level since march of last year. we have seen five consecutive weeks of gains for u.s. stocks. this despite the fact that on friday fed chair powell attempted to curve bets on rate cut saying officials are ready to hike further if needed. listen. chair towel: it would be --

powell: it would be premature to conclude with confidence we have achieved a sufficiently restrictive stance or to speculate on when policy might ease. having come so far and so quickly the fomc is moving carefully forward as of the risks of under tightening it over tightening are becoming more balanced. the strong actions we have taken have moved our policy right up and well into restrictive territory. monetary policy is thought to effect economic conditions with a laugh. the full effects of our tightening likely have not been felled. the fomc is strongly committed to bringing inflation down to 2% over time and keeping policy restrictive until we are confident inflation is on a path towards that objective. my colleagues and i anticipate growth in spending and output will slow over the next year. shery: the market is not believing chair powell. annabelle, how are we setting up for the asian session? annabelle: it's about a key phrase we just heard from jay powell saying rates are well in restrictive territory.

that is what traders have been clinging to. this morning we are seeing a big rally in risk assets. and lots of asset classes. gold is one of them. it hit a fresh record high. we are coming off three straight weeks of gains. a good start to pick up in october at a 12% climb, first starting with haven demand, the israel hamas war lead into that. then it's coming down to expectation. we will see rate cuts over the course of next year. we have seen moves in bitcoin this morning earlier touching 40,000 for the first time since may of last year. that was before the collapse of the terrausd stablecoin. when you look at that rsi on a 14 day basis it looks like we are nearing overbought conditions. there has been optimism coming into bed going off the back of the expectation that we will see spark bitcoin etf filings in the u.s. being approved by the ftc by january. a quick check on equities as we

look to the open for japan and korea with aussie stoxx 50 percent of the way into the session played on the asx 200 about 90% of stocks on it are in the green. a big jump. in the bond space, it's the retreat coming through in yields. you are seeing it in aussie and kiwi bonds to start today. again, it is the expectation that we are done with the fed tightening for now. haidi: yeah. really, a collective shrug is what we heard from jay powell. we have much more to come on daybreak: asia. we have bid moves for this monday morning. markets are coming online. this is bloomberg. ♪. ♪.

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es electricidad aquí es salud. shery: it's time for depend ahead. japanese assets now. the japanese yen is strengthening. we saw significant strength in the last few days. of course, this after becoming the worst performer g10 currencies this year already down about 10% against the u.s. dollar. the weakness and how cheap the japanese yen has been has led to spending by foreign visitors to japan already exceeding free time to make levels of this year. not to mention, the tourism sector has gotten a boost thanks to post-pandemic easing of travel restrictions. for more insight, our next

guest, ceo of otieno resorts joins us now. the hotel operator is known for high-end hot spring resorts across japan with branches in taiwan and bali. it's great to have you with us. tell us about what you are seeing in demand from foreign visitors and against japanese domestic travelers in your business at the moment. yoshiharu: japan opened the border october 2022. since then, international travelers quickly came back to our markets. as you said, because of the weekend, -- the week why en any from europe, australia and the u.s.. demand from china has not come back yet impaired to the 2019 level. but, the total demand from international travelers and inbound has come back. at the same time the weekend --

the week yen really contributed to the low recovery of the outer bounds market meaning that japanese domestic travelers are shifting their destinations to japan. so, all of these japanese destinations have been accepting so much demand throughout the 2023. shery: is that what you are seeing in taiwan and bali, fewer japanese travelers coming to your business? yoshiharu: hawaii as a little bit different because of the week yen. the japan market is very important in hawaii but we have not really been able to recover from japan. taiwan is a different story. the island has a lot of outbound market and they have now started going out of that region to

japan and other regions all over the world. so, the domestic demand is much lower right now. shery: has anything changed in the trend of foreign visitors spending when they are visiting japan and europe resorts especially with a cheap yen? what are you seeing in spending patterns? yoshiharu: the spending pattern is a little different because the market is different. now most of the customers during 2019 wherefrom asia. korea, china, taiwan, so on. now, more and more travelers are from the u.s. or europe because of the week yen against their currencies. they tended to stay longer. they tended to visit different destinations in japan.

we are seeing a little bit of different behavior because of the changes in the market. people coming from different countries right now. shery: you mention tourists from different regions. what about age groups? we heard japan was popular among millennials and gen z. are you seeing more use coming to your properties? yoshiharu: in terms of our properties, our properties tend to have high prices. so, i think we are accepting still 40's, 50's, 60's, mainly. but, especially in the cities we are now seeing much younger generations coming from europe and the u.s. and australia and so on. i think we will be seeing more young travelers if we have more

people from taiwan and china. those markets still have not really recovered compared to 2019 demand levels. shery: as we close out the year and head to 2024, what are you most excited about in the hospitality industry now? yoshiharu: the japanese government is trying to upgrade the facilities and services of national parks in japan. we have 37 national parks. they are choosing eight destinations as great national parks for international travelers. we will probably be seeing more and more international travelers to those parks. that is very important for you tokyo, osaka, kyoto, the top five researchers took more than 65% of total international travel demand. we need to level that throughout

the other regions of of japan if we are to grow our business. the national parks will be very important for us. another interesting important topic is if it will be extended to a prefecture that has not been a popular destination for international travelers, but next spring, it will be a very easy access area from tokyo. so that extension is another big topic in 2024. shery: thank you so much ceo of resorts. a key topic in japan is the aging population. businesses in the country are finding new ways to keep the elderly employed for longer as they tried to address expanding labor shortages.

for more the bloomberg health and consumer reporter joins us from tokyo. tell us more about how companies are addressing the labor shortage. >> good morning. japan has been suffering from an aging population for a long time and a declining birthrate so companies have been faced with smaller labor forces to work with. adding on to that, with a very weak yen it's been difficult to get more foreign workers because the value of the money that they would make in japan would be smaller. so the company has been trying to come up with unique ways to employ elderly people longer and also in novel ways. some examples, apart from raising the retirement age, they are actually coming up with ways

to remove the stigma around elderly people. also, outsourcing in a way to work shorter hours rather than full-time. haidi: tell us how the week yen has been impacting the labor shortages as well? >> so much of that does impact foreign workers. that japan has been trying to attract. the government has been relaxing immigration policies trying to lure more workers especially the elderly to the service industry so they can fill up. but because of the weaker yen it has been difficult to attract foreign workers there is a labor shortage. so foreign workers are more attracted to developed countries where they can make more money. so it's been tough for japan.

hence, japan has to come up with a unique way to keep the domestic workers longer in their labor force. haidi: health and consumer reporter there in tokyo. catch japan ahead every week at 11:40 a.m. if you are watching in tokyo.

haidi: the south korean president replaced as many as 10 ministers in a cabinet reshuffle monday. john herskovitz joins us with more. what are we expecting? what is inspiring these major changes in the government? john: we might see some ministers replaced today. small and medium enterprises, land, science. and bigger posts like finance and foreign minister are up for consideration. there are come contingencies around this. the finance minister might wait for the budget passing problem and for the foreign minister there are key negotiations. the biggest is trying to arrange a summit among china, japan, and south korea that have been suspended since 2019. these bigger appointments may wait until that.

we are seeing the election coming up in south korea in april. and as the president's conservative party is trying to retake parliament. he has been looking to consolidate power ahead of the election. he replaced his top presidential secretaries last week. the cabinet shuffle goes on top of this. he has is eyes on what is coming up in april with the election with his party trying to take over parliament again. shery: is that the risk leading to changes that might satisfy the broader public ahead of the election? what are the major -- majors sticking points here? john: the risks is this may not excite the public. it could keep his support range, which has been around 30% for months, at the same level. he was a prosecutor before he became president, so he has never really played in the

political gamesmanship that going -- goes into fielding a slate of candidates for an election. the risk is he does not do enough to get his people and government promoted ahead of the election and in the democratic party will keep control of the parliament in asia. shery: we await elections in south korea. we will watch the market opened in still vessel -- sel ul.

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haidi: is asia counting down to asia's major market opened that expectations of a fed rate cut

sooner rather than later dominate global markets. u.s. stocks gaining for five great weeks and treasuries resuming a rally. haidi: the rally, shrug off what jay powell says even as he was pushing back against expectations of earlier than expected easing build back in market pricing. we see that rally carried through to the start of the asian trading week. annabelle: big move this morning in gold, bitcoin, and aussie stocks. counting down to the open for japan and south korea, the trading sentiment will be dominated by the jay powell statement friday. there was a specific statement he said. that rates are well into restrictive territory and that is what traders are clinging to, saying the fed will be cutting. when you look at what markets are pricing in, it's a reduction in the key rate of 1.25% over the course of next year. how's that is setting us up for

trading in the session today, we are looking at treasuries fairly steady now coming online with a start of cash markets. it has been a general retreat across the board. we are also seeing big moves in the currency space with the japanese yen there holding below the 147 mark. stocks were fairly flat, a little lower coming online to start the week here. the yen now at the highest since early september against the greenback. let's look at korea to start the day as well. here we will be watching the one flight -- quite closely near the key 1300 level, psychological barrier. the w went is sensitive to expectations around the fed and does not trade 24 hours per day. korean markets coming online .7% to the upside. stocks wise, the kospi taking a cue from the wall street section with u.s. futures fairly flat. it was a fifth week of gains on

wall street on friday to end. let's change to what we are seeing in australia. not just focused on the fed. they are also expecting the rba decision tuesday. what economists are seeing is i hawkish hold. we saw a so-called protective high and the prediction is a hold on tuesday. data run inflation. the inflation gauge dropping at the top of the hour. we have seen on the month of the reading coming in at .3%. so it is a bit of it it was down 1% in the prior reading. year on year the reading is a slow and 4.4% on the year or the last reading at 5.1%. some think the are b.i. should be watching closely. shery: our next guest expects returns to be front ended here

when it comes to asian stocks excluding japan given the underperformance in the region so far. the asian equity strategist at jp morgan joins us now. it is really interesting in your notes that you are talking about front ended gains. what happens as you get into 2024? mix it has been different major variables, the u.s. macro and everything that jay powell says, everything that comes from the data affects all that. the second thing is what happens with china? that has been on a different cycle since 2021. the third is what happens with technology. this has been our framework for a year now and going into next year we continue to hold with that. when you look at each of the individual pieces, the thing that gives us more hope near-term is u.s. macro.

here we can see a lot of moves driven by positioning in flows. you can infer macros and arias and it looks like at this point the market is pricing in an approximately 70% probability of goldilocks, which is typically very high. we see these a scenarios rollover from these sort of levels. so further into next year we think the optimism about goldilocks will fade. a lot of the growth pressures are not going away and we think that over the next 18 months, a recession in the u.s. becomes a very high probability outcome. that is what we are looking at as driving returns in the second half or middle part of next year. shery: you are overweight china. you have greater expectations for economic performance out of china next year with performance in the u.s.?

>> china, given the over performance and the fact that market is scraping the bottom of its rating range in the last 12 months or so, and that going into next year we expect china growth will be slightly better first half and a slow down a little more second-half, given that trajectory, we think china is primed for a tactical bounce, given the fact many policy stimulus measures have been coming through. investors are now watching to get a confirmation of growth targets at about 5%. more policy goes towards addressing long-term challenges. that is what we think will drive the upside. we see more upside optionality rather than something structural. that will likely play out. the big problem in china has been the lack of confidence from businesses and consumers. we think this recovers slowly

over time. if you start to see policy moves from the government to try to jumpstart the economy against positive optionality. shery: will confidence come out of the economic numbers? it seems there is also a lack of confidence now about regulatory crackdowns in the country. we are seeing president xi jinping denying the key economic plenums this week. it seems like there is a lot of speculation about where policymakers are going from here. if you are expecting that confidence to come where investors can actually get into chinese assets, that mostly has to rely on a rebound in economic growth. harlowe mxm: there are three ways confidence comes back. you either have very large policy support coming through. that does not seem to be on

anyone's minds. there's no appetite for that. the second is regulatory certainty, the key sticking point over the last two years were a lot of businesses feel they don't have sufficient regulatory visibility to invest and hire people. and as a result we have seen a job market that is slightly lackluster and it bleeds into consumer confidence because consumers don't have visibility into their own income. that's been a big drawback for the chinese economy. the third thing that can jumpstart or build better confidence is simply time. with more time, if the economy continues to do ok and remain stable and not crash, it you will see people going back to daily routines and build confidence slowly. that's a very slow process. shery: we are watching geopolitical tensions around china. we have elections in taiwan. we have a very heavy political calendar across asia. how are you watching those

events? mixo: we have four major elections next year starting with taiwan, then indonesia in february, and indian elections in may. typically what tends to happen is there 10 -- tends to be some support of sentiment boosting policy heading into elections. we will be looking for that. the typical trajectory of postelection moves tends to be positive. i am very intent to see markets moving over the volatility, therefore higher in the immediate aftermath of the election. these are the typical types of moves we will be looking forward to. one market where we are a little more positive on our structural basis is india. where, historically speaking, going into general elections the market averages about 13% upside in the six months heading into elections. that is something we think and also materialize at this time.

shery: before you go, the tech sector. you mentioned you aren't necessarily liking that in asia. i wonder why. because, we have seen signs of perhaps a semiconductor slump that has bottomed out. mixo: that has been our most controversial call. the caution towards the technology space and tech heavy markets in general stems from a variety of reasons. firstly, when you look at the cycle bottoming, that has been happening in the markets have been pricing that in. when you look at moves since january we have seen the market discount and upcoming turn in the semiconductor cycle and the memory cycle. that has already been driving markets to a certain extent. when you look at valuations, where they stand relative to where we are in the cycle bottoming process, it looks a little rich to us. the second thing is about ai, speaking with investors where we feel like people are starting to take a little money off the table on the ai trade, largely driven by the fact there has not

been very significant application follow-through in the last one year since we had chat dbt, -- chatgpt online. that is proving downward pressure on technology valuations overall. third is positioning. if you look at korea and taiwan as markets, investors are generally neutral to underweight, but heavily overweight to the technology space. there is very little room for the sector and markets to do well. the risk reward from our spread effective -- perspective is likely skewed to the downside. shery: at about, -- annabelle, you are looking at the start of trading sessions across asia. what's moving? annabelle: a couple different sectors we are focusing on closely this morning. we have seen a lot of different moves in relation to what jay powell said friday. the interpretation that markets are making is that the fed could start to cut rates next year. that is the pricing action we

are seeing this morning with bitcoin hitting the $40,000 mark , the first time that has happened since may of last year. to put it in context, before the collapse of the terrausd stablecoin. it is to set a play for some crypto plays in asia mostly moving to the upside so far. let's change because some of the moves coming across in the metal space. couple miners are one to watch. moving in different directions. the top two names listed in japan. copper hitting its highest since august in the last trading session. gold, minors are rallying in australia with gold hitting a fresh record high in the last hour or so. let's look at korean battery or ev battery materials and supplies here. big jumps across the board. that's after we had the u.s. is setting out guidance for electric vehicle tax credits.

there are different details. the important headline to know is the rules are designed to block ev manufacturers in the u.s. from sourcing battery materials from china and other foreign adversaries. that's what is key here. it is about trying to cut china out of the supply chain for ev makers in the u.s.. city group -- citigroup says this boosts sentiment of the korean ottery space in particular. that's the reaction so far with the opening of the kospi. haidi: coming up, evergrande in focus as well. last chance to avoid liquidation through the world's most indebted developer faces a hong kong court later today. first, israel tells residents of southern gaza to evacuate from some areas as these -- it steps up its offensive against hamas. latest on the conflict is next. this is bloomberg. this is bloomberg.

a few years ago, i came to saona, they told me there's no electricity on the island. we always thought that whatever we did here would be an emblem of what small communities can achieve. trying to give a better life to people that don't have the means to do it. si mi papá estuviera vivo, sé que él tuviera orgulloso también de vivir de esta viviendo una vida como la que estamos viviendo ahora. es electricidad aquí es salud.

shery: israel is pushing an offense against hamas into southern gaza after a temporary since fire lasted -- cease fire lasted seven days. israeli military is bearing down on a city telling palestinian civilians to move to a set of

nearby no target zones. bloomberg's hayes joins us. it seems like there is more need being paid to the increasing pressure. this second part of the conflict to try to minimize the level of sheer civilian loss we saw the past few weeks will that work? michael: it's hard to see how it would. we have not seen any ground operations yet in the south. there have been strides and presumably there will be a ground operation to come. the only way to do this without the same level of casualties would be to rely almost solely on ground troop rather than air strikes, see strikes, or any of that. it's difficult to do that. particularly, where this is where most of hamas is located, in the tunnels, that sort of stuff. unless israel chooses to not use any airpower, which is very hard

to see, because it's one of its advantages, it will be hard to do that. the report i have seen is 80% of gods is a 2.2 million people are in this southern zone where it is exceptionally crowded, exceptionally built up. the pressure is building. there were discussions with israel looking at what its military options were. the u.s. was indicating perhaps they don't have the time they think they do in terms of international opinion. it will be hard for them. on the same token, the release of the hostages, the stories that have come out, the revival of october 7, and the experience there from those hostages, it seems to have reinforced to the will among the israeli population, the support for keeping on during this. whether israel could go it alone or if the u.s. actually began to act like more than just being critical -- or, act more than talk on this, that is still to be seen. but it will be interesting how they handle that.

shery: that is the thing. there are so many hostages still left in gaza. that even the airstrikes have put into question their safety. can we expect another pause, another cease-fire, to get those exchanges in place for the remaining people there? michael: it's hard to know. most of the women and children are out. there are still some others there. israel got a lot of until out of that. israel has also withdrawn negotiators from qatar. apparently it is still open to negotiations are talking, but the suggestion from the withdrawal is they are not anticipating anything soon there. the other interesting thing going on here too is obviously hezbollah in the north of lebanon, just over israel's northern border has begun firing once the cease-fire ended. we are seeing a situation with the macy's -- the newsies --

attacking shipping as well that will potentially ramp of tension in the area. the u.s. military made a comment that they don't do anything without iran's say-so and there is a lot of truth in that. this raises the question whether the risk starts to entertain too that it is perhaps a ron dr. stopped as if it really wanted to. back to the hostages. it seems that because they are mainly troops, mainly men, they want to be a priority. we have seen in israel you can get a build of of hostages that is really starting to happen. there are already little protests beginning that will bubble up as more time passes. shery: let's turn to the issue of climate change. exxon mobil and saudi aramco, two of the world's largest oil companies are leading a pledge by 50 producers to cut emissions unveiled at cop 28 in dubai.

su keenan joins us with the latest. it still a controversial deal. su: yeah, mainly because none of the oil companies are agreeing to cut oil and gas consumption and that is the crux of the issue for many climate and energy leaders now gathering in the we -- uae for this u.n. conference. the concern is the planet is warming so fast that without major cuts to fossil fuel use the crisis will be stronger and the options for remedy far fewer. that said, the pledge by these oil companies was the highlight of the latest cop 28 session. exxon mobil and saudi arabia's aramco led a pledge by 50 oil and gas producers to cut emissions of their own operations, cutting back on the release of methane by 2030. there is a new methane tracking program now designed to hold big oil accountable. the initiative was spearheaded by the cop 28 president, the ceo of abu dhabi national oil.

he says we must do all we can to decarbonizing the energy system we have today. the cop 28 climate summit is an ambitious effort with hundreds of organizations, companies, and activists in attendance. but there are divisions with in -- within and many are making their way to the headlines this week. haidi: what are the major issues? su: there is an ambitious agenda that includes cutting various fuels and following the paris accord and the already set out steps. there are a lot of critics, newly reported comments by the cop 28 president sparks concern there is loss -- less of a commitment to the fossil fuel phase out and at the crux of the controversy and online conversation between the irish president who pressed the president to take the lead in phasing out fossil fuel and his response was he did not want to

sign up for any discussion that is alarmist. he refused -- said a phase out or facedown a fossil fuels is inevitable but he wants to be pragmatic. activists view big oil companies at climate criminals and suggest the oil companies hijacked the conference. this raises the question if the conference can unite on a strong pledge on eliminating fossil fuels. the u.s. pledged $3 billion in climate change to poorer nations and the eu said it would invest $2.5 billion in the green transition overseas. haidi: bloomberg's su keenan there. limitations on ev makers, the u.s. setting limits on chinese ability to receive ev tax credits. 25%. that is one of the stories in the early part of trading in south korea and we are seeing a jump when it comes to korean ev

battery stocks, largely on the u.s. guidance for ev tax credits as well. we are seeing that rally at the moment in sk i.e. technology, the outperformer at 10% to the upside. ev battery stocks in south korea rallying after u.s. limits on chinese content to receive tax credits. more to come on daybreak: asia. this is bloomberg.

shery: the $2 billion monitoring laundering probe in -- money laundering probe in singapore shining a light on foreign fund flows into the city. authorities seized cash, cars, property, and gold bars with the investigation raising questions about loopholes in the financial sector, a focus of the big take

with jet -- dexter low. singapore is a city state that is very open to foreign wealth, foreign capital. what do we know so far? dexter: that's right. the last few years it has tried to portray itself as a wealth hub. in this sense, this case really showed you have about 2 billion in assets being seized and among them more than one billion were found in banks. chinese born individuals work accused of laundering a lot of money for pretty much years and a singapore has put a lot of safeguards and efforts towards attracting foreign wealth. haidi: dexter, this is a city

state that attracts a lot of higher-level wealth. it is also a government that has gone to enormous links to build a reputation for transparency. it's a really big deal. dexter: yes, that's right. singapore has always per trade itself as open to foreign wealth, and the last few years especially with china, you have seen that kind of wealth really grow. so essentially you have 1000 wife hundred family offices -- 1500 family offices at the end of last year, a 25% jump compared to 2020. that appears on the streets. around singapore nowadays you see fancy cars, people with fancy lifestyles. wine clubs and golf clubs have been doing very well. it drives a lot of tension because a bunch of locals are struggling with inflation, with high living costs.

like everywhere else in the world. at the same time, singapore tries to portray itself as a balanced between attracting the rich and at the same time, being open to being able to tackle all of these issues of affordability. so, this is what why a lot of people have been living lavish lifestyles. and commit if prosecutors are to believed -- to be believed have believed -- to be believed have been getting rid of -- away with 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. mom, love you always. vo: when you graduate, they graduate. visit finishyourdiploma.org to find free and supportive adult education centers near you.

♪\ haidi: mrs. daybreak: asia with a check on markets for asia, starting on a high note. what is driving sentiment is jay powell's presser where he said rates are restrictive.

he did not push back on expectations that hikes could be imminent or cuts could be imminent but markets are interpreting his statement as dovish. that is why the market is seeing moves in treasury yields coming through the retreat as investors bet that the fed and central banks have done with their tech tightening cycle. that is playing out. in commodities were seeing gains . we had gold touching a fresh record high, copper as well moving in shanghai. aluminum, oil with gains to the upside. in the currency space the softer dollar you are seeing the korean one, japanese yen back below the key level. other moves, the japanese yen is playing out for stocks because they are lagging in the session which is making japanese

exporters sensitive to the moves in the local currency. we are seeing gains to the upside. lots of sectors but they eeev battery materials supplies, let's take a look because we are seeing big jumps across the board. some looking like a daily limit after we had the u.s. spelling out rules for ev tax credits in the u.s.. what you need to know is it is trying to cut china and other foreign investors out of the supply chain. korean battery materials are seen as a big beneficiary and that's overseeing a big jump. shery: we're watching china's real estate sector. evergrande facing its final winding up hearing on monday in hong kong. these are live pictures from outside the court where the

judgment will be made. loretta joins us. what do we know about evergrande's restructuring talks with creditors? loretta: the last time we heard from bondholders was last friday. there was a scoop saying discussion is ongoing and everyone has offered shares. the company and subsidiary, creditors are asking for more. they're asking for controlling stake in the companies. it seems like a lot of uncertainty in terms of whether they will reach the last minute deal with bondholders. haidi: how higher the chances of liquidation? what happens if we see an order? loretta: chances have never been so high for liquidation for evergrande. today at 9:30 in hong kong we

will see a final decision from justice linda chen and the next time evergrande -- the last time they were in court was november. justice linda chen said this was the last adjournment for the company. if evergrande does not have a concrete proposal it will face liquidation which means the court will appoint liquidators that will take up evergrande's unit and we will see assets being sold and taken over. shery: will a decision by a hong kong judge be recognized in mainland china and what would that mean for china's ongoing operative crisis? loretta: that is the key question that will be important for all of the companies that could face potential legal

disputes in china's property sector. today we had another property developer, logan, facing another hearing in hong kong court. in the case of evergrande it has thousands of projects in mainland china and we all know that there is the possibility of mainland chinese court recognizing a winding up order and liquidation order of hong kong court. it remains unknown because the courts are possibly going to favor onshore stakeholders. what we know is the process will take years if they ever get a liquidation order. and who is footing the bill will be homebuyers waiting on homes to be built. you're going to lose life savings because the process is dragging. haidi: loretta chen in hong kong as we watch those developments.

let's bring in the chief china economist at lloyd. always great to have you with us and i'm curious does the fate of one property developer even if it is evergrande at this point in the process of the broader sector still have an impact? >> it is indeed a messy situation but i do not think there will be systemic risk. i think we are seeing some signs of stabilization in recent offshore bond market. but of course as your colleague highlighted whether onshore creditors will get a priority remains to be seen but the goal of the policy is to get the project finished. haidi: when it comes to the property sector and the growth narrative over the past two

decades over how businesses have operated, can we get a revival of confidence if we do not have a fix for property? >> well, the property sector is so huge and chinese consumers so far have only made decent returns from the property sector , not from the equity market. over many years. the property sector is tied to 70% of consumers wealth so the government has recognized the urgent see and there will be more supportive measures. the next two years i do not think the property sector will have positive growth. having said that, the economy is showing signs of stabilization.

some mobile phone sales in recent months, just blown up numbers. next year's growth will be around 4.5%. haidi: how worried are you about provincial and local government debt because we've had a financial regulator announcement for plans when it comes to how debt risks are managed. will that be a pressure point? >> well it is going to be a negotiation process between federal and local government. the central government does not want to give a blank check. at the same time local government wants to get a fiscal transfer. so that also explains some seemingly piecemeal measures

that we've seen in terms of stabilization. haidi: what are your expectations for further measures going into 2024? >> they will guide interest rates lower with the deposit rate already coming down. i think they want to maintain profit margins for commercial banks. i think there will be resolutions for local government debt but they will not massively cut interest rates. with long-term interest rates peaking that is giving policymakers more wiggle room. haidi: are you worried about a liquidity drain? we saw debt issuance pullback in november. is this something we might see a repeat of? >> well, we have seen numerous

episodes, the offshore bond market as you pointed out, liquidity has dried up. i think that was caused by mainly caused by the confusion explained clearly by your colleague loretta. people want to know what the pecking order will be for that to be paid and there has been confusion. haidi: how optimistic are you when it comes to the new approach. we've seen xi jinping leaving leaders including in the u.s., including australian leaders. is there a sense that on the geopolitical front there could be more willingness to work together so that at least that is one less distraction for leadership?

>> diplomatic policies has been quite proactive. the australian prime minister's visit was a nice surprise. we've also seen diplomacy between china, japan, korea in the wake of the aipac meeting. seems to me more global ceos are willing to visit china then what they did in the beginning of the year. so a new equilibrium of the u.s. china bilateral relationship will be very important for investment sentiment. haidi: what's the biggest risk in 2024 for you? >> the biggest risk is the property sector.

if we have too much drag we need to look at the forecast of 4.5% and revisit that. at this point residential markets should be ok. haidi: chief china economist. more to come on daybreak asia, this is bloomberg. ♪

a few years ago, i came to saona, they told me there's no electricity on the island. we always thought that whatever we did here would be an emblem of what small communities can achieve. trying to give a better life to people that don't have the means to do it. si mi papá estuviera vivo, sé que él tuviera orgulloso también de vivir de esta viviendo una vida como la que estamos viviendo ahora. es electricidad aquí es salud.

♪ shery: we are seeing major markets across asia gaining ground with the exception of japan. real estate and material stocks are leading the gains. south korea is one of the big gainers in today's session, recouping losses from friday but south korean stocks have been on a tear with four or five weeks of gains when it comes to the kospi in one sector gaining

grounds is battery related stocks in south korea rising after the u.s. set limits on chinese content. citigroup and other brokers said the move can boost sentiment in the battery space. karen lead joins us now. tell us about the latest move by the biden administration and how south korea could benefit. karen: this has been an interesting jump for korean battery stocks for the first day of trading since the biden administration released rules blocking manufacturers from sourcing materials from china and adversaries. it is a highly watched move. these rules establish 25% ownership for companies or groups to be classified as foreign entities. brokerages said the move will boost sentiment in the battery

space and we are seeing a huge jump on that news. haidi: what are we expecting when it comes to related china stocks when they come online? karen: ev's have been a huge focus for china. we have seen companies trying to manufacture these. the world is looking at what china is doing in this space and these guidelines are part of a deal to extend a tax credit through bidens climate law. the restrictions will apply to battery components next year, hero materials including nickel and lithium. in this has wide-ranging implications because next year vehicles containing any battery components manufactured by fdo c will no longer qualify. that something china's markets will be watching and car buyers will be watching.

haidi: bloomberg's global business editor karen lee. let's get you headlines from corporate stories so far. china eastern and says a plane bound for hong kong was diverted after reporting a signal failure. it landed safely and no injuries were reported. the plane vibrated constantly and there were broken fan blades and a hole in part of the engine. rolls-royce says they're working to look into the matter. china has approved a vaccine for a covid subvariant for emergency use. the world health organization says it is the most transmissible strain yet and the inhaled version allows a an immune response that is higher. china approved inhaled covid vaccines as booster shots.

alaskan air will by a rival in a deal to combine the two carol's. -- the two carriers. the deal includes $900 million of hawaiian's debt. it challenges the biden administration's aggressive stance on mergers that has derailed one partnership. this is bloomberg. ♪

shery: former u.s. treasury

secretary larry summers, one of the new members of openai's board, says the startup needs to be a corporation with a conscience. he spoke with bloomberg's david westin. >> this was extraordinarily important. no one can be certain whether this is a once in a decade or once in a half-century technology, wants a century technology, wants a millennium technology. no one can know for sure but it sure looks like it is awfully important to develop rapidly and safely and to disseminate effectively and well. when i was offered an opportunity to be part of contributing to that, overseeing to make sure that that was effectively done and to do it

working with great people, i thought it was a real opportunity and i was glad to do it. david: what you just said, safely, strikes me as part of what you will be focused on and that gets to governance, how you handle the technology. do you have a sense of what you need to do to govern it? >> i've been on the job two days and they are going to send me the onboarding packet for the board on sunday, so i shouldn't say too much at all because i don't know enough. here some things i think i know. a company like this has to be prepared to cooperate, it does not mean always agree with, but cooperate with government officials on regulatory issues,

national security issues, on development of technology issues. i think i know also this is integral to the structure of openai where the for-profit entity is a creature of a not for profit entity that this needs to be a corporation with a conscience and we need to be thinking about multiple stakeholders in the development of this. as a board member that will be part of my responsibility, working with other board members to make that certain. my colleague at harvard ken galbraith said conscience is the knowledge that someone is

watching and it is the responsibility for everyone involved to be thinking carefully always about both opportunities and uncertainties to make sure those are balanced in the best way that is possible. haidi: former u.s. treasury secretary larry summers with david westin. he is a paid contributor to bloomberg tv. let's take a look at how markets are trading. a collective shrug against what we saw was a pushback from jay powell. try to push back against expectations of rate cuts coming in sooner than expected. we are seeing a rally across different asset classes. s&p futures off a 10 of 1% but were seeing a big rally when it comes to gold and bitcoin as

well as upside in asian stocks trading at the moment as well. xi jinping looks ready to postpone a party meeting. bloomberg's asian stocks managing editor joins us now. are there market applications for this move? >> yeah, this delay would be the first time it's been held in an off schedule year. over the last three decades. a lot of market participants have previously pointed to the meeting or are looking to that meeting for fresh cruise -- clues or catalyst to how the market will go. with that being delayed for shifters to look at the economic conference expected in the coming weeks. that could contain a more detailed description of various industry policies for 2024 and

people would be looking for clues for gdp growth next year from that meeting alone. economists are looking at gdp but sensually to be up 4.5% next year and expecting a fiscal deficit to be wider than this year as well. shery: we had also seen the mainland markets excited with news about etf buying by china before holdings. do we expect more purchases this week? >> we have seen a lot of analyst notes coming out over the weekend saying this is a sign of confidence from the government in terms of willingness to boost market further. cicc had a note saying the fact that etf is buying esso ease and tech means that certain sectors will benefit more, including the electric vehicle sector and

other hardware tech sectors. there have been local reports that the fund is going to purchase more this week. in terms of the market reaction or long-lasting power that we're going to see from this kind of purchase. shery: stocks managing editor. we watching the chinese property sector and we have evergrande facing a final winding up hearing on monday. the market opens our next. ♪ like 2.5% cash back on purchases of $5,000 or more, so sam can make smart ideas, a brilliant reality! chase for business. make more of what's yours.

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. the idea that we have saved five million people's lives, it's overwhelming. it's everything. >> good morning. it is monday. we got here. welcome to bloomberg markets: china open. >>