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shery: you are watching "daybreak: asia", or you live from sydney, new york and hong kong. annabelle: we are counting down to asia's major market opens. haidi: australia has just come online, the top stories this hour. australia's central bank is set for a hawkish hold as data points to a information and weaker home price growth. and the saudi's pushback on market skepticism that opec-plus production cuts will be delivered in school. we have breaking news crossing the bloomberg. south korea gdp numbers as well as cpi numbers. when it comes to the gdp number you're on your for the third quarter, this is a preliminary release. bang on in terms of expectations, in terms of 4%.

expectations were for 1.4%. that is easily adjusted quarter-on-quarter. gdp number, the preliminary reading is 0.6 percent, again maintaining that level from the prior reading. taking a look at perhaps more interesting degree to which we have seen a little bit more of a contractual order comes to consumer price inflation month-on-month, we are seeing a decline of 0.6%. expectations were 0.3% contraction. the previous rating was 0.3% acceleration. year on year, that south korea number cpi number is coming in at 3.3%. softer than exhibitions of 3.5%, in quite a significant decline from the previous month's reading of 3.8%. so the pace of consumer inflation in south korea is slowing more than expected in november. that will offer some relief to the bank of korea, they had been alarmed by the conundrum of duty with accelerating price gains we

were seeing in. previous months stripping out food and energy costs, the most volatile components, we are seeing the cpi number coming in at 3%. slower than executions of 3.2% in the previous reading. agricultural prices in south korea have been one of the biggest inflationary pressures, also tight labor markets and fast wage hikes as well as the issue of household debt. it's all part of that balancing act. the bok expecting to see inflation followed to the 2% range. duty steadily trending in the right direction. annabelle: you said something that the bok may look upon quite favorably, is that number. you can see a bit of weakness coming into the aussie session. yesterday the session closed at its highest level since september of 2020 -- rather, september of this year.

point being, it appears to be taking its cues from that will suit session where we saw optimism around fed rate cuts at the start of next year starting to fade somewhat. also watching so far, the moves we have in yields. little movement, and not reflecting the prior session. we saw the spike in the 10 year treasury. perhaps trade is a bit of wait and see. we have the rba rate decision in the last couple of hours. the expectation from most of the economists we serve it is a hawkish hold as approach to the more protective hike we saw last month. something to watch in the hours ahead. let's change and look at the rest of the region this morning. it's looking like we are going to see a day of overall weakness, through. it really is about the wall street session, the expectations, or diminishing expectations about fed rate cuts next year.

most futures are pointing to the downside. china is one to watch as well, because chinese markets are underperforming what we saw for the global benchmark. we saw the csi 300 yesterday closing at its lowest level since february of 2019. so really yet to see a new renewed and sustained confidence coming back in mainland shares. vonnie:. vonnie: yes, we saw the downside when it comes to chinese adrs in the wall street session, the golden dragon as an index only about 2% or so. look at how u.s. futures are coming online in the asian session. downside after stocks and bonds smell today. risk assets taking a breather after the recent rally in the s&p 500, at its highest level since march of 2022. long positioning has been crowded. so we are seeing a bit of unwinding in that. also, investors are u.s. factory orders, following more than

expected as we await jobs numbers, including november nonfarm payrolls on friday. meantime, treasury following. the 10-year yield towards the 4.3 level. and crude prices at the moment rebounding a little bit. wti up 0.4%. this, only after folding for three consecutive sessions. six weeks of consecutive losses. there is a lot of skepticism that the latest opec+ supply cuts will tighten the market. but it's really about the fed direction. our next guest says bond market bond yields are still attractive. brad gibson is cohead of asia-pacific fixed income at alliancebernstein. great to have you with us. i mentioned the fed to the path from here. although we saw yields rebounding a bit today, we are still pricing in 100 basis points of fed rate cuts by the

end of next year. where do you see yields going from here? brad: yes, it has been a roller coaster in the u.s. bond market. with yields around 5%, it looks very attractive. there was no alternative but to be invested in that market. but now with 30-year yields around 4.3%, they are getting closer to fair value. the path of the most likely direction in 2024 is still for lower yields in the u.s., so the 10-year yield drifting towards 4% in 2024 will still offer investors an attractive return. probably more so at the shorter end of the curve despite what we have priced in. we don't fight too much against the fed beginning to ease into i-24. the market is pricing in maybe a 25 print bases cart in march, may be too aggressive, but it is likely where the fed is headed into i-24 and bond yields will support it.

vonnie: we thought it would be a good year for fixed income, especially in emerging markets. could that happen in 2024? brad: emerging markets mixed across the region's. they are already some central bank that have been easing. in asia, we have obviously china on an easing path. their bond market is very stable. for other markets do oh the volatility in the u.s. treasury market means they are less attractive. there are more potential gains in the u.s. bond market down there there are in some of these lower yielding asian bond markets. korea might be an exception, we just had the official numbers out of their. the bank of korea, there could be some value in the shorter end of the korean curve relative to other markets. haidi: on the topic of em's, korea is technically in the developing market category, how strong is a correlation with what goes on in china now? do you think after a year like this year that has been horrible for chinese assets that it has

become less of a reliance within the em space? brad: we have tortured the financial data to sort of see what the correlations are between government be or chinese rates -- between the renminbi and other asian markets. still, the dominant factor remains the u.s. dollar and the treasury market. nevertheless with china easing, not just monetarily, but with fiscal policy, and providing a source of stability for china's economy, that is supportive for a range of asian and global economies asteria being one of them. a rising commodity price for example, will see a vast improvement in australia's fiscal situation. haidi: yeah, you take us to australia, the rba decision. what do you see as the dynamic that we might see when it comes to that 10 year the aussie dollar versus what the fed might do from here on? brad: australia is an economy in a different situation.

we talked about over 100 basis points of easing priced into the u.s. curve in 2024, in australia, there is maybe 25 basis points of rate cuts priced in. so the shorter end of the australian yield curve will be quite stable relative to other markets. we don't expect the rba to move here, but there is still potential for the rba to hike one more time in 2024. unlike the fed, we aren't convinced the rba is completely done. the longer end of the australian curve, if you think about the fiscal situation in australia relative to other large developed market economies, it is significantly better. there is not a lot of supply pressure in the australian bond market on a tip to other markets. it still looks attractive, for me stability point of view, relative to other markets. vonnie: it will be eight years heavy with elections around the world especially across emerging markets -- it will be eight year that is heavy with elections around the world.

what are you watching in the fixed income space? brad: we think about important elections in indonesia, india in february. we had to state elections in india last week where the bjp did quite well. moody's's reelection the most likely scenario. continuity in indonesia, joko widodo will no longer be president since he has had two terms, but the frontrunners for the elections are going to remain on track for their economic policy. so not a lot of volatility from those two elections. the elections in taiwan may be a more headline risk, but the bigger risk for 2024 again, is probably in the u.s. [laughter] haidi: just quickly, you are not ruling out another four years were trumped? brad: it's hard to rule that out, if you look at the ratings particularly coming into the primaries he is well ahead of any other contender there. it looks like a biden-trump

election for november 2024. and i am sure the market will be starting to think about what the implications of that are for both bond and equity markets, for sure. haidi: [sighs] we will be will be in for a wild ride, no doubt about it. brad gibson, great to chat with you, head of asia-pacific fixed income at alliancebernstein. coming up, reports of strikes hitting the territory of gaza's second-largest city permit will get the latest on the conference just ahead. we will also get our exclusive interview with saudi arabia's energy minister, prince abdulaziz bin salman, and his outlook what it comes to the supply situation, next. this is bloomberg. ♪

>> we actually have four separate facilities, for our strategic petroleum reserve's. we will be doing at least 3 million barrels, and we hope we can bring more capacity online at these price levels to buy as much as we can to re-field and make sure we have that available when we need in the future. so we will buy as much back as we possibly can. but there are some physical constraints. haidi: that was u.s. deputy energy secretary david turk on his country's oil reserves. so the energy minister prince of

dulos's been solomon says oil supply cuts can stay past the first quarter if needed. . in an misconceived interview, he pledged the cuts would be -- in an inclusive interview, he pledged the cuts would be delivered in full. >> i believe the best decision we made was to delay the meeting. i honestly believe that the delivery of the cuts will happen. i honestly believe that 2.2 median will overcome event the huge inventory build that usually happens in the first quarter. it's almost like we were working with a checklist. and that last item in the checklist, apart from the commitment is to give the market the submit that this 2.2 million will not come up simply because

we wanted the market to know that there would be a phased approach. since we don't know what will be the market situation between january and february of march, we wanted to be careful about what language we use bassy it will be phased out or gradual, and it will be based on the market condition. >> so i will ask you again, what did the market not understand about the deal -- that you took a next or week to get there, you brought everyone on board? prince abdulaziz: not the market, the commentators that wanted the market not to believe the deal did their own work. they want to be conspiratorial. but i believe a lot of credibility would be going down the drain when people see the reality of the deal. we are also not that worried. the jury is still out. but again, if you talk to saudi

aramco, if you talk to adnoc, talk to many of these companies, they see demand. they see that we are getting better prices than what we were getting as brent is today. vonnie: saudi energy minister prince abdulaziz bin salman, speaking discursively with bloomberg's will kennedy. let's check in on the oil markets, because we are seeing a bit of a rebound after a fall in the most recession. bloomberg's su keenan joins us with more. we are seeing u.s. crude open marginally higher in the asian session. su: yeah, a bit of stabilization after sending off both in new york and london. you have the oil market sending a clear message to opec+, "show us, don't tell us." these comments from the saudi energy minister resulted in a brief blip -- you can see it on the screen, that it was quickly erased with price futures nearing $73 in after-hours

trading for wti crude. this comes on the heels of six weeks of declines. brent and wti futures are now below the level they were before the opec+ meeting took place, all of which highlights the market's pessimism and questions about whether opec+ really has the effectiveness to move the oil price. there you see the back-to-back declines for the last two months that we have seen in oil. rbc's oil analysts say oil has become a show me market. resistance is lower given the lack of credibility. meanwhile, hsbc holdings is saying that opec+, its allies as well as the main members lack an exit strategy to unwind these reductions. they believe they have shot off the last of their bullets and again, the price of oil and really not gaining momentum to move higher.

vonnie: yet there are some bullish headlines when it comes to oil pricing, the u.s. could be boosting reserves? su: yes, there was an announcement we heard from the department of energy secretary david turk talking about efforts of the u.s. to now re-feel the strategic petroleum reserve's. of course, oil prices are lower and they want to take advantage of that, so that is bullish. they want to buy as much as they can. because the reserves are at the lowest level since the 1980's. but there is a problem, valiant efforts are limited by logistical problems. there was limited storage for a number of different reasons. so the plan is a little by about 3 million barrels of oil a month to go back in. they are be feeling as much as they can. the biden administration drained a record 180 million barrels from the spr last year to stabilize prices after they spiked after the russian invasion of ukraine.

and we have that is situation in venezuela, and ongoing negotiations with the u.s. that may limit the supply coming from there. so again, what you are looking at his various -- very low prices for brent and crude compared to where they were two months ago. vonnie: six weeks of losses for oil prices. bloomberg's su keenan with the latest on the energy space. you can get a roundup of today's stories. terminal subscribers can go to dayb , also available on mobile on the bloomberg anywhere app. you can customize the settings so you only get the news on the industries and assets that you care about. 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.

vonnie: welcome back. south korea president yoon samuel is replacing a third of his covenant ministers in the biggest government shakeup of his tenure, half of the new nominees are women in a largely male cabinet. it comes ahead of parliamentary elections in april, for more, bloomberg's east asia government editor jon herskovitz joins us now, what will these changes mean for policy? jon: yoon picture number of people who have served in the government before and i think he wanted to show continuity. . he is subtly looking to consolidate power as he heads into the elections in april which will determine whether his conservative people power party can take over control of the parliament, the unicameral parliament, or if the democratic party will keep charge. so he is -- has made changes

and revamped cabinet ministers and many will be seeking seats in parliament, using the platform as cabinet minister as a springboard for their campaign, hoping the name recognition will translate into a seat in the body. haidi: how is the race for parliament shaping up? jon: at this point, it's a difficult thing to say, because both parties have had their difficulties going into the election. the leader of the democratic party is facing various charges for suspected --. that is damaging to the party. he has had some issues with getting the slate of candidates together. both parties are turned to find a message, find the people, and try to find the nerve that can excite the sweet voters. it looks like it's a bit neck-and-neck now, but these next few months will be crucial

for shaping the message and safe candidates for that election which determines whether yoon will face three more years of gridlock for the remainder of his term, or whether he can control the body and pushed his policy agenda. vonnie: and they are trying to appeal to female voters? i mean, three of the six nominees are women. will that help? jon: it could. he had some problems with younger women voters in his presidential election campaign. his cabinet did not have a huge number of women, and i think he is trying to study the ship for showa different message from before, showing that he can appeal to more voters across the spectrum. and right some of the wrongs he did in his presidential campaign. haidi: bloomberg's east asia government editor jon herskovitz. let's look at how currencies are trading at the moment. it was early that come back for the u.s. dollar that dominated

trading in the overnight session, some of this pushback concerns that fed rate cut expectations of gone too far. the dollar is poised for its best day in seven weeks alongside the rise in yields as well. we are seeing a bit of a pullback for the aussie dollar, .6619. really quite interested to see, despite that hawkish hold scenario, how hawkish the communication will be from governor bullock. she has positioned herself since mid-september when she took over in the top job as sounding quite hawkish about the domestic drivers of inflation. dollar-china looking like this. we are also watching dollar-yen, the yen has had some brass from the weakness in the dollar. but the derivatives poised for the best advance in seven weeks and we do the climbing treasury yields, supply pressures, and traders also positioning for the

jobs data data this week. vonnie: yes, the november nonfarm numerals will be crucial in trying to determine where the fed goes from here. investors were also digesting u.s. factory orders follow more than expected. . it will be the unemployment data, the jobless numbers for nonfarm euros being added to those numbers, which will signal how fast really that u.s. economy is cooling. at the moment, we are seeing u.s. futures extending the declines in the wall street session, really, risk assets taking a breather after the recent surge of the s&p 500. it was at the highest level since march of

. haidi: we are breaking news out

of japan getting the tokyo cpi numbers. a growth of 2.6% for the month of november. a faster does sell the ration than expected by economists who thought inflation would throw 3% from 3.3% the previous month. headline inflation, 2.6%. look at core cpi excluding fresh fruit, there is also discoloration faster than expected to 2.3% year on year for the month of november. we were expecting upward pressure from import prices. the yen in november was range bound. we did see further depreciation. we see further appreciation in the japanese yen. you see the deceleration of inflation has been faster than expected and core inflation --

that really adds to the reasoning from the bank of japan that upward inflation is fading and that is a reason why they are keeping a loose monetary policy. despite the fact that we are seeing inflation in japan. haidi: israel's military as expanding its operations further into the southern gaza strip with reports of strikes hitting the second largest city. there are increased warnings from the u.s. to limit civilian deaths. this is the idea that you may get a tactical victory but a strategic defeat. in the words of secretary of defense, the civilians are the center of gravity. >> it is the truth in any war

particularly in this case. i'm not sure it quite works that way. we saw the republican party being quite critical of lloyd austen comments. the palestinian people have been marginalized in any risk -- in many respects as decades have gone by so the chance of israel winning over the support of that population is a limited. it is more the matter of international opinion that israel has to worry about. they are using airstrikes. it will be difficult to keep down the civilian casualties. there are so many people in southern gaza. haidi: and they have been told to evacuate. >> and they have been given

certain designated areas by israel. but there have been strikes there. it is difficult to limit. i understand where the u.s. is coming from in trying to win over the civilians and separate them from hamas but this is particularly difficult historical circumstances. shery: what does this all mean for the next stage of hostage negotiations? 130 people still in gaza. >> the families of those hostages are trying to keep them front of mind. limited protests are going on. the first pause in fighting took place because of pressure from the families. it grew more until it became difficult for israel to avoid it and there were international hostages there as well.

that is beginning again. having resumed fairly intense fighting, and once it resumed, we don't talk about it much but hamas is still launching rockets. it is a full-scale conflict again. 137 hostages, most of them israelis. they are not all men. the majority are. that will be on the sidelines for now. the pressure will build as each week passes to bring those people back. haidi: it is probably too early to think about but there are people asking what happens after this. who runs, who rebuilds? >> the u.s. is looking quite seriously at this because this will be a critical issue. and this does play into the

civilian side of it that secretary lloyd austin was talking about. if you can offer people hope and if the u.s. is involved, they are quite keen to get the palestinian authority running gaza. there are a lot of issues with the palestinian authority but there is a revamped version. if money was there there could be prospect for the future but there -- but they are still a long way from that. shery: other geopolitical headlines. bloomberg has learned that the russian president is traveling this week to the uae and saudi arabia marking a rare trip abroad for him since russia's invasion of ukraine. he is expected to meet with saudi crown prince. the plan trip highlights the importance of gulf states to

moscow given its dependence on oil imports. the commerce secretary defended washington's chip export controls. beijing said the u.s. should work with china after recent meetings between the countries' leader's. she called for more funding to prevent beijing from catching up on ships that could be used for military purposes saying that china was "not our friend." the u.s. plans to arm submarines next year with versions of the tomahawk missiles. it is part of washington's plan to ramp up the military. in a statement the navy says the weapons will be modified with a new guidance system to engage mobile targets at sea. early in the asian trading session but let's see what we --

how we are setting up. annabelle: looking at what happened in the u.s. session because wall street is setting the tone for trading. we have stocks, u.s. futures under pressure. it was moves in the wall street session where we have been in the overboard territory that we fell back from that. it is at a level that is considered a precursor to a correction. sentiment around expectations for a fed rate cuts, aggressive rate cuts year. looking a little overdone. that is playing into the asian session. let's look at the performance of stocks so far. aussie, you can see the drop of a percent. nikkei futures starting up in singapore. the same theme across the board. inflation data.

we had the tokyo numbers. at the headline level, all undershooting expectations. this is something that bolsters the boj's case to stick with the settings. and a changing on the korean data. one of the biggest month on month declines that we've seen in four decades. the october reading, we had a base effect because it was influenced by the run-up in oil prices that we saw over that month and korea is a major energy importer. inflation posting a sharp drop down .6%. something the be ok is looking at -- the bok is looking at

quite favorably. haidi: let's get more from garfield reynolds. we are seeing this as funding cuts continue to decline. >> the incredibly rapid drop in government bond yields which is the benchmark against what every -- against which everything is judged. yesterday looking at two-year u.s. yields. i thought i was reading a monthly drop. they are -- they also come down noticeably to levels they were at six months ago. and at a time when the federal reserve has still not officially said we are done, it is hard for companies to resist borrowing at these levels. and remember, we will have

plenty of companies going in august, september, october, do we really want to borrow at a time when we have this meltdown in the bond market and yields are going up. companies would have to go over the odds because investors are concerned at the way yields are going up and prices are going down. they are worried. investors want to buy credit now. you had a little bit of a lenders strike going on. now the shoe is on the other foot. it makes sense that companies are going to rush in to borrow while they can especially when you have this labor data coming this week. we have signs that there are doubts if they went too far.

data coming out this week culminating in nonfarm payrolls. we have cpi data coming next week and the fed coming next week. there are plenty of reasons to get in now when the price is right as a borrower. shery: after a tough year. a fundraising in private debt and equity markets has been tough. but private credit is edging ahead. garfield: that is partly because of the dynamics that you have during a tightening cycle. private credit offers some capacity to go with the flow. there is a fear of floating rate debt there. benchmark rates are rising, you get higher returns, higher interest payments which you need because your own funding costs

are going up. they offer some level of protection in this sort of environment. whereas private equity is exposed to all the sorts of issues that have had people worrying about equities in general. you notice that after a strong november, equities have been struggling to move higher even amid the rate cut frenzy speculation that broke out. you are at that stage in the cycle where private debt investors are getting some sort of rewards for the risks involved. private equity is starting to really feel the impact of all of the rate hikes over the last year, year and a half which has dried up m&a. that is the lifeblood of private equity and investment in particular. shery: garfield reynolds, our

mliv contributor. we will discuss how climate talks are progressing at cop 28 in dubai with nations pledging to triple capacity by 2030. this is bloomberg. ♪ hey, doc, if you had to choose, would you give yourself a root canal or run payroll? oh, run payroll. paying my team with gusto takes just a few clicks. they automatically file my taxes for me too. can i run payroll too?

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>> we have to look across the board. we have to look at all of the sources of emissions and we have to have a plan to build all of the new clean energy. >> those companies, are they going to partner with the rest of the world by having some real commitments? >> we have a war in the middle of europe and one in this region. this is hard to do all of this to ensure it is fair and just. >> fossil fuels have a role to play and it is so important we bring up the renewable energy level to a level where we can then talk about removing them. >> next year, if we bump up the support by 2.3 billion euros. >> india's decarbonization

journey is getting started. shery: some of our guest from the cup 28 summit in dubai. the talks have begun with a flurry of announcements and agreements. let's does because progress with our guest. what has stood out for you in the first few days of the summit? >> i think it has been clear that all the work the host country has done has paid off. what might seem like a trivial example is that they quickly agreed on the summit agenda. that might sound trivial but to put it into context, earlier when there was a pre-cop meeting, they spent a lot of time trying to agree to the agenda. in the case of a cup 28 the

summit agenda was quickly agreed on and most notably was the fund which had been a contentious issue in egypt last year at cup 27. -- at cop 27. and we have seen a flurry of announcements, not by all signatories but by select groups. we saw a large number of countries signed on to the renewable target. we saw a smaller group signed on to tripling nuclear capacity by 2050. and we have 40% of oil and gas production capacity covered by targets by 2030. good progress showing the

legwork that uae had done is paying off. haidi: the goals of tripling renewables by 2030 and nuclear power by 2050 --does that look feasible? >> for renewable capacity, we have globally -- tripling by 2030 would mean we are looking at just under 11 terra white. if you compare that number with a previous scenario the global number is aligned with what would let us be on the trajectory. the last time around, it is 12 years. we would have to do this much quicker. and we are starting at a higher base. we would have to speed up rapidly.

when you look across the technologies, solar is on its way to more than triple by 2030. probably fivefold. wind generation capacity is where we are struggling. on a geographic basis, for china , it is in-line with tripling by 2030 but other geographies are more challenging. japan, tripling would be required for the alignment. and in markets like india or indonesia we would have to more than triple capacity. they are nowhere near that trajectory right now. for nuclear, it is more challenging. at the end of 2022 we had 334 gige white of -- operational. to triple it, we would have to

have one terra white operational by 2050. to put it in context, previously we only saw a 3% increase in operational nuclear capacity. there is a question around whether the nuclear industry and the countries that have signed on to this pledge can really deliver. haidi: staying with cop 28, the saudi arabia energy minister says the kingdom will not agree to any -- that phases down fossil fuels. he told us exclusively that of countries believe they can reduce hydrocarbon use they should get on with it. >> i am not naming names.

if they see we should phase down hydrocarbon, you should come out and put together a plan on how starting january 1. they should freeze their production. and put together a plan for when that phasing out will happen. >> you mentioned the phaseout. 500 miles from here in dubai many people are doing the summit.

there was a question about whether the countries in the world should phase down fossil fuels. are you happy to have that language in the text? >> absolutely not. and i assure you that not a single person believes and that. but if they believe in it i would like to put that challenge for all of those who believe and will come out publicly, please give them -- please give me their name and number and ask them how they will execute that effective in january. if they believe that, fantastic. let them do that. and we will see how much they can deliver if they can deliver. shery: the saudi energy

ministers speaking exclusively to bloomberg. we have more to come on "bloomberg daybreak: asia." this is bloomberg. ♪

haidi: you are watching "bloomberg daybreak: asia." mark zuckerberg is selling meta shares for the first time in two years as the social media giant

rebounds from a rocky 2022. this comes as meta surged outperforming most major tech firms helping him to maximize the proceeds of his activities outside of meta. spotify has cut 1500 jobs, 17 percent of its workforce. this is as it is on track to add 100 million users marking it the best year yet or the biggest year yet. the ceo said spotify was still spending too much amid an economic slowdown. the cany reported a rare -- last quarter.

shery: this is "bloomberg daybreak: asia." we saw a risk assets taking a breather on the wall street session today. we saw the s&p 500 at the highest level since march. we are down from those levels and treasury yields going higher. haidi: the come back when it comes to the greenback. the aussie dollar wiping out its gains. we are focusing on the communication, the press conference and what the governor says. we expect a hawkish hold. annabelle: that is what we have seen from her. the open for japan and south korea. the focus in the session coming down to global inflation pressures. in the last half hour we saw the

tokyo inflation numbers. tokyo inflation is a leading indicator of the national trend. it suggests the country's price growth moderated last month. the core reading, two .3%. lower than expected. headline core, undershooting economists predictions. telling us it is supportive of what the boj thinks about inflation. the boj things inflation pressures will cool and that has been cited as a reason for why they have not pivoted away from the settings. the outlook -- weakness coming through. dollar strength story playing out. we have the yen back above the 147 mark.

stocks under pressure, down .5%. not just what we are seeing in tokyo but also in korea. an hour ago we had inflation numbers coming out for november. slowing more than what had been predicted in the surveys. consumer prices up 3.3%. last then the 3.8% in october. and the quarterly readings, that is something that could be supportive for the bok. they made it clear that fighting inflation is a top priority for them and they want to see inflation gauges falling back into the 2% range before they can continue policy easing. some in the markets have said a cut around august could be seen as most likely.

the dollar strength story playing out. the korean wan under pressure. and stocks in the red as we come online. australia, the story of global inflation pressures abating. that could help the rba later today. we are expecting the rba to resume a pause in rate increases. holding the cash rate at 4.35%. a 12 year high. deutsche bank is the loan outsider. the rba is still concerned around slower home price growth. inflation suggesting the previous priming they have carried out is gaining traction. haidi: all about the countdown, the drum roll the rba. the early part of trading. let's bring in the rain town --

lorraine tan. it is about central banks going into next year. you are in the camp that in march we will see the fed cuts. lorraine: we are. we expect the u.s. economy to start slowing in the third quarter of 2020 four. we expect inflation to start tapering off. that would give room for the fed policy. lower interest rates starting in march at the earliest. we think the u.s. economy will start slowing giving reason for the fed took touch. haidi: that is good news for growth tech. it underpins the opportunities. lorraine: we have seen a good

run up in tech names especially in the u.s. markets but it has not translated to the asia markets. where we are at for the u.s. tech sector is that we are moving into a -- into an underweight growth position in favor of value. we still see discounts in the markets here. we see selective opportunities in tech. in asia we are still seeing more opportunities in terms of fair value estimates. i think that would give some room for further upside of asia names. shery: do those include chinese tech giants as well? lorraine: it does but we are selective. part of that is because the china market is quite undervalued.

it is a different macro environment than what -- it is a different macro environment. we see we consumer confidence. -- weak consumer confidence. we do see a lot of value in asian names particularly chinese names. shery: to your point, the ownership of chinese equities when it comes to top e.m. funds has tumbled to a five-year low. what would it take to get the confidence back? lorraine: the chinese economy needs to grow again. and if we have macro growth in china closer to 6%, that will exceed global growth. there -- that is probably reason

enough for investors to come back into chinese stocks. it is a broad and deep market. selective names will still see above average growth. some names we like on the domestic front include a bite shield company. different from the usual names you would get we still see growth in some of these companies. we still expect growth for gaming companies. and we do expect more supportive regulations and policies that would encourage buying some of these stocks. shery: talking about support, what about the sectors that have the backing of beijing in terms of growth in terms of green

energy, ev's and the like? lorraine: we expect on a short-term basis for ev sales to pick up over the next 1-2 quarters bringing some interest back into these names that have had a selloff recently. over the longer term, one of the global industries we think represents good opportunity is lithium. lithium prices have really come down. names like albemarle in the states is a name we think is a tract the moment. we would probably have to keep them for the midterm given that there is still pressure on prices. haidi: how much more opportunity

remains when it comes to the japan equity rally? lorraine: there are still some laggards there. we have seen the run-up in tech in the states reflect expectation that interest rates are coming down. what is not reflected yet, and the risk is the u.s. slows more than expected but the thing is we are still in the soft landing camp. what we have not seen reflected is the recovery in the u.s. growth. that will bring back interest into some of the names and the laggards -- we are optimistic. we see that the chip company

should recover and that is underestimated at the moment. equipment manufacturers including industrial robotic names, we think there are opportunities there for the longer run as well. shery: good to have you with us. thank you. still ahead we will hear from the world bank on progress made on the climate financing goals as cop 28 continues in dubai. the rba is expected to deliver a hawkish pause in interest rate hikes. he will get a preview of tuesday in asia next. 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: you are watching "bloomberg daybreak: asia." the ceos of standard charter and macquarie group says better data around the missions and the viability of dream projects are essential to unlocking more investment. they were speaking at the green festival in dubai. >> this money is the savings of

pensioners. they ideally want defensive capital protected. we jokingly say it is deadly boring right through to the barely interesting. there is not that much money for it all. by does wide -- that is why we have to bring it back. this is where the government money can come in or venture or philanthropy. there is plenty of capital for the stuff that is easy to do but not the stuff that is hard to do. the investable projects have been a challenge. >> not in dollars but in terms of percentage available's is in terms of adaptation. even at 1.5 degrees, we will have horrific climate affects.

most of the poor nations in the world have no defenses at all. a lot of the work we have done at standard charter has made it clear that a small amount of capital today can avoid 12 or more times the cost, not in 20 or 30 years but in seven years. if we don't spend something as small as $10 billion today, we will be paying $150 billion in adaptation related expense. for society it is a no-brainer. but the projects are not easily economic because you are protecting against an event. profit-seeking money will not flow there and there is not enough philanthropic money or government money. there are a lot of gaps. haidi: bill winters and the

macquarie group ceo speaking at the bloomberg green festival in dubai. speaking about how markets are trading. pushback against a pretty popular trading narrative that the fed will cut year. our guest from morningstar -- a little reprisal going on when it comes to the previous session. we have seen expectations build. the question is whether we will see a blueprint when it comes to the australian 10-year pending on what we got from the rba. they are expected to resume the pause on rate hikes based on inflation and home market data suggesting the rba has more time or a buffer and the previous tightening has been transmitting through and gaining traction. we will be watching when it comes to their press conference of the rba and what we hear from

the governor. the governor delivered the surprise rate hike last month. why the hawkish hold today given we know she is pretty worried about domestic drivers of inflation? >> good morning. when she delivered that surprise rate hike last month many economists believed it was a protective hike. and that the rba is done. supporting that case we had a slew of data since that meeting which have pointed to the fact that the rba can actually take stock of information and slow a bit though they have been slowing the cycle. we have had a monthly inflation indicator that came in weaker than expected. retail sales slow. labor market pointing to a

slowdown or a cooling in employment growth. and wages came in in line with expectation. data like that has pointed to the fact that the rba can relax a little bit until next meeting. shery: michelle bullock has sounded more hawkish than her predecessor. given her comments and given what happened last month, how high are the chances of a surprise hike today? >> inflation is still very high in australia though monthly inflation indicator came in weaker than expected. it was still 4.9%, well above the 3% target the rba has. that is a worry for them. core inflation is above a lot of other countries. it is above the u.s., new zealand, canada and the euro

area. there are good reasons for them to hike. given that just last week she spoke about emerging second round effects of inflation, there is a chance she takes the call and decides it is not a good idea to wait and delivers another surprise today. there is a chance. we have an economist at deutsche bank predicting that. but many economists are still expecting a pause. haidi: data expected tomorrow. how is the economy tracking after the 425 basis points of hikes since may 2022. >> australia's economy has slowed down. last year we saw growth of 2.7 percent. this year we are seeing 1.8%

your growth has slowed. one reason why the rba has moved slowly in the tightening cycle compared to its counterparts is because it wanted to engineer a soft landing. we have not had a contraction, nowhere near that. domestic demand has been resilient surprising policymakers. but compared to what we saw last year, even the first half of the year, the impulse has slowed and that is despite good population growth in australia. the rba will take note of the fact that growth is slowing but not causing any recession or contraction. haidi: our economics reporter. you can also turn to your bloomberg for more on this on tliv . this is bloomberg. ♪

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haidi: israel's military is expanding its operations further into the southern gaza strip. the stepped up fighting comes after increased warnings from the u.s. to limit civilian deaths. this is a new dimension to what we have seen in this conflict. >> basically the israelis are moving to the south. there is still fighting in the north. there has been some border conflict that has been some of the most intense fighting. in the south, the is raley's are hitting the second largest city in gaza and it is a hometown of the man who leads hamas.

there are some theories that is where the hostages are being held. that is likely to be the next main target. some reports say this will be the most significant next battle to take control of the gaza strip from the is really side. but 70% of gaza strip is in the south because so many evacuated from the north when the attack started on gaza city. this will be heavily populated. we are going to see a lot more intense attacks and the south and will see a lot more civilian casualties. the health ministry in gaza of hamas has reported that more than 15,000 people in southern gaza have been killed. shery: how do we get to the next stage of negotiations with hostages still being held? >> there are still women being held there.

there has been some signals from the u.s., between the lines you can read, the theory is that hamas does not want to release the women because they don't want them talking about what happened to them in cap -- in captivity. the rest of them are women and men of military age. there is still a group of women among them. where it goes from here is difficult to say. the cease-fire, the pause collapsed on friday. the u.s. and israel blame hamas but it is hard to know who to blame. but pressure will begin to build in israel again for them to try to release some of those hostages. the families will put pressure on the government. haidi: the atrocities of the conflict have been multifaceted. there is a renewed focus on sexual violence by hamas and a

fair degree of outrage as to why this has not been addressed. >> there have been horrific casualties in gaza. part of the anger in israel about the attack was that it was women and children and not combatants. there have been a lot of reports about the weaponization of sexual assault. and there has been criticism coming out of israel about why more women's groups have not advocated on this issue. it runs into the theme of people who are sympathetic to hamas don't want that side of the story told. that is the is really opinion. and the war moves fast. it is hard to follow. that issue will get more attention i think. shery: the latest on the ongoing

israel-hamas war. in other geopolitical stories, bloomberg has learned that the russian president is traveling this week to the uae and saudi arabia marking a rare trip abroad for him since russia's invasion of ukraine. according to one russian media he is expected to meet with a saudi crown prince. the planned trip highlights the importance of goal states to moscow given its dependence on energy export revenues. the u.s. navy plans to begin arming submarines at next year with ship targeting versions of the tomahawk missile. it is part of washington's push to ramp up its military capabilities to challenge chinese maritime forces particularly around taiwan. in a statement the navy says the weapons will be modified with a new guidance system to engage mobile targets at sea. china has criticized the u.s.

for seeing it as a threat after the commerce secretary defended washington's chip export controls. beijing said the u.s. should work with china after a recent meeting between the leaders. she called for more funding to prevent beijing from catching up on chips that can be used for military purposes and said china was "not a friend." the analyst who predicted china's regional bank turmoil four years ago has a similar warning for the nation's trust industry. jason -- james bedford -- jason bedford joins us now. this is bloomberg. ♪ (car engine revs) (engine accelerating) (texting clicks) (tires squeal) (glass shattering)

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ahead of the rba decision when we are expecting the hawkish hold from the governor, the deficit coming in at $158 million missing the estimate of three point 2 million aussie dollars. exports taking .6 percentage points from gdp and the estimate was for a contraction of .2%. we are getting more data as we fill out the picture as to the outlook for australia. the domestic price pressures have been more stubborn. and that has been acknowledged by the rba. on the other side of the improvement when it comes to terms of trade. the relationship with china and exuberance when it comes to the housing market recovery. shery: we are getting pmi

numbers from several countries. we are seeing the japan pmi composite number falling into contraction territory of 49.6. talking about the final numbers for november being revised downwards. we were fading towards the 50 threshold for the preliminary number. we are in contraction territory. the pmi's services driven by pmi in japan as well slowing down to 50 point eight. still in expansionary territory but a slow down. perhaps not that surprising given we have seen other eco-data points across japan point two a slow down as well. take a look at the singapore pmi number which is a jump to 55 point eight. we have been in expansion territory for moche of the year and a very open singaporean

economy. hong kong -- we have upgraded to 50.1 for the month of november. finally in expansion territory after being in contraction since the summer. annabelle: taking a look at what is happening in the broader market landscape. the story feeding across of traders pairing expectations for aggressive fed rate cuts next year. the tenure -- in the session yesterday the 10 year did spike. this dynamic is playing out. the bonds, not much movement. it is the story in the middle space. declines for copper, iron ore and aluminum. these are sensitive to treasuries and the direction of the dollar. and weakness coming through in

the korean wan. and it plays out for equities because we are broadly weaker in the session. the set up for asia today is influenced i what is happening in china's markets. yesterday the csi 300 closed and hit a fresh year to date low. we are at levels we have not seen since february 2019. looking at the index versus the s&p 500, you can see the clear underperformance over the course of the year. the index is looking at its third straight annual loss. first time we've seen that since the start of the 2000's. you have to look a long way back to see that underperformance. a lot of catalysts for that including the policy, the lack of clarity, the speed with which it was rolled out and the time and the geopolitical concerns on

the property sector. there are so many troubles for the chinese equities ahead. haidi: analysts predicted the troubles that hit china's regional banks several years ago now has a similar warning or a trust industry. the sector -- the asian financials analyst, jason bedford joins us. we see this in our rotation of sectors that have structural risks in china. what makes you think that this is going to be a systemic issue for the trust space. jason: i don't necessarily think it is going to be a systemic issue for the trust space or for china more broadly. when you look at a bank in china, most of them look like other banks with unified business models. trust companies have a more

diverse range of business models. particularly a base model of countercyclical lending to banks. when banks pull credit part an area, trust companies or some of them will step in with replacement credits. this time around that has been painful because a lot of their financing has gone to the real estate sector and we have not seen any material improvement in that sector causing these piecemeal problems across the sector. haidi: how much of this has to do with the drying up of business from these formally highflying property developers? jason: it has a lot to do with it i think. one of the big issues with the sector is that trust companies, unlike most fund managers, real estate products were seen as low

risks and highly collateralized and typically a target. not only are they taking losses in their off balance sheet, but they are also suffering losses in their on balance sheet positions because of their exposures to these products. in short the real estate sector is the key source or a key point for the trust sector. haidi: is the balance sheet difficult to look at? we are talking about traditional banks and trusts. they did not display typical factors that would show stress or concern. jason: that is right. they did not have any of the typical pre-indicators. this is a unique entity because it is a subsidiary of a much

broader wealth management conglomerate. it is those intra-linkages which have caused some of the problems we have seen there. sorry. haidi: how much of this is problematic when it comes to categorizing? we know this is the case when it comes to conventional banks, chinese banks as well. npl's versus special assets. is that the case when it comes to the trusts as well? jason: a similar standard of disclosures for the trust companies but in general i would describe the disclosures for trust companies as pretty good. it is not a fun thing to admit that 80% of your assets on your balance sheet are not performing

. if they are lying and it was 100% there is a difference between those two things. more broadly i would say the transparency in the sector and in banks for that matter is quite good. haidi: you talk about the lack of uniformity when it comes to the business models. which trust would be most at risk? what does the sector look like after this period? i imagine there would be some degree of consolidation and some will cease to exist. how messy could that be? jason: to my surprise, it is not been that messy. when we look at 2019 when the first bank in china declared bankruptcy sending the whole system into a deep freeze. in may this year, the first trust company in 20 years to declare in group c, no one even seemed to be aware that it had occurred. a strong sign of improving

corporate governance and china addressing moral hazards. you i think there will be more trust companies that go through a similar process? yes if they were over exposed to real estate during a time -- but we are seeing a piecemeal approach. some companies are receiving financial support, capital injections from state entities. some trust companies like our friends at new china trust are not. it seems more likely there is not going to be a lot of support their for them from the government. but eventually i think we will see more of the same. shery: jason, great to have you with us. much to watch as we got into 2024. haidi: the ua use climate change

minister things fossil fuels still have a role to play while other nations ramp up their energy transition. 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. >> i honestly believe that the delivery of that would happen. i honestly believe that 2.2

million will overcome the usual inventory in the first quarter. shery: the saudi arabia and minister talking exclusively to bloomberg about the curbs agreed to by opec-plus though markets don't seem to be buying the rhetoric that much. we saw lawson's -- we saw losses on the wall street session after a six straight weeks of drops amidst the persistent skepticism that it would help, curbing supplies. for more on oil, su keenan joins us with the latest. markets are not necessarily buying it. su: this is a show me market.

the message the markets are sending to opec-plus is clear, show us and don't tell us. these comments by the saudi a bring -- saudi arabia and minister. in new york trading we had a close before a bounce up in asia trading. this comes on the heels of six weeks of decline. brian and west texas intermediate futures below the level they were at before the opec-plus meeting took place. our oil analyst says oil has a near-term path of least resistance lower ribbon a degree of ambiguity and the lack of catalyst we have. if you check out the bigger picture charts, oil has posted back to back monthly declines in october and november. this is happening as supplies have outshined opec's cartel are

booming. and demand growth is softening. markets show short-term signs that there is oversupply, there is a gauge called time spreads which is flashing oversupply. the question from the markets is does saudi arabia have the ability to provide momentum for oil to move higher. hsbc says it shot off all its bullets. and there is a feeling they are not as it -- they are not as effective as they used to be in this scenario. haidi: tell us more about the bullish news. >> the bullish news did not provide a counterweight against the decline. new york trading nonetheless, we had the department of energy telling bloomberg and others that they are taking advantage of the lower prices to fill up the spr, strategic petroleum

reserves, the oil level there has fallen to the lowest since the 1980's. the doe says there are storage constraints and are limiting the extent to which they can buy oil now that it is cheaper. the plan is for a 3 million barrel purchase of oil a month to go back into the reserves. there is not enough space to take on more of that. a biden administration drained 180 million barrels from the spr to stabilize prices after they spiked in the aftermath of russia's invasion of ukraine. this debility we see now is on the downside. crude falling significantly in the u.s. trading. they questions about where it goes from here. haidi: the ua use minister of

climate change says fossil fuels have a role to play and more show -- and more focus should be given on the phasing up of renewables. she spoke to bloomberg on the sidelines of cop 28 in dubai. >> commitments have been made and actions are fleshing out and coming out and momentum is building. it is what is needed. you saw on day zero, the agenda being adopted which never happened before. the loss and damage fund was operationalized. uae stepped up first and germany followed. i think today we have exceeded $720 million in the loss and damage fund. on the food side which is something i'm proud of, i'm the food systems lead, we have come to 134 endorsements on the uid food systems and -- uae food

systems and agricultural adaptations. this is the political will we need. on top of that we got the initiative we announced with the bill and melinda gates foundation. $200 million going into different streams, one is into the system and one is into scaling up innovations. >> we will get to that in more detail in a moment. he caused controversy in the last 12 hours. a quote from him from november saying there is no scenario saying the phaseout of fossil fuel will achieve 1.5 degrees. you understand there are people out there are confused because they see your progress but then they are hearing the uid spokesperson is pushing back. -- uae spokesperson is pushing

back. >> the report does say that fossil fuels has -- have a smaller role to play. we are focused on the phasing up of renewables and the decarbonization of our existing systems. i want to make it clear -- to build a solar panel or wind turbine you need energy. you have to use the energy systems of today to build the energy systems of tomorrow. that is what we are doing in the country and that is what the cop 28 presidency is doing. we have a tripling of renewable energy capacity and doubling energy efficiency. fossil fuels have a smaller role to play and it is important that we bring up the renewable energy level to a level where we can talk about removing them. >> i want to dig deeper into the u.s.-uae initiative.

how will this move the needle as far as the portfolio? >> we announced at cop 26, the initiative, a platform to make sure that we bring in partners to look at innovations we need to scale up. these last two years we have gotten more than 500 partners on board and $13 billion of investments. and there will be new announcements coming out with new partners and new investments identifying the innovations we need to scale up. and this is a part that calms and with the bill and melinda foundation partnership. we will identify the innovations to scale up where they are needed most. haidi: the uae minister of climate change speaking to bloomberg on the sidelines of the cop 28. if you missed any part of that conversation tv is your function.

you can watch us live and dive into the securities. send us instant messages during our shows. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪ if you had to choose, would you give yourself a root canal or run payroll? run payroll, no question. you know how tough payroll can be, right? no. we switched to gusto, and paying my team couldn't be easier. gusto gives me unlimited payroll runs, next day direct deposits, and automatically files my taxes. ooh, taxes! sounds like you know the drill. good one! can i run payroll too? sure, after this. choose payroll without the pain. that's working with gusto. ♪ ♪

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mark zuckerberg is selling his meta-shares for the first time in two years as the social media giant rebounds from a rocky 2022. he unloaded almost 185 billion dollars in stock as ,eta -- in stock as meta surged maximizing the proceeds for head activities -- for his activities including scientific research. a singaporean wealth fund is in talks to invest in a securitization business from credit suisse. any capital injection would follow apollo's efforts to raise capital to grow at last. the platform bundles debt including mortgages into bonds that it sells. bloomberg has learned that a call center software provider is exploring a potential sale two

years after it scrapped a multibillion-dollar takeover by zoom. it is working with advisors to cage interest from potential buyers and has held discussions with zoom about possibly raise -- resurrecting the deal. bloomberg has learned that buys you -- to raise money. three properties were used as collateral as the indian education tech company battles a crash -- cash crunch. shery: take a look at some of the stocks we are watching. developers in focus with evergrande key china unit replacing its chairman reporting contracting sales for november. another company is set to report

earnings later today and record sales are unlikely to stem the ev makers deepening losses. and watch gaming stocks after china improved online games. major solar producer gcl warning that china's industry is entering the worst part of the consolidation phase. keep an eye on the oil producers , the saudi arabia and energy meadows start telling bloomberg. opec-plus cuts can stay in place beyond march. we are seeing a little upside for oil prices but not that much given the losses we have seen on wall street already. haidi: take a look at how that is trickling through to the asian session. broad downside. we are seeing giving back most of the gains particularly when it comes to some of the currency trends that have been rolling through on the back of the

weakness in the dollar. that is reversed especially for the aussie dollar by going to the rba decision. equities following the losses on wall street with a pushback against aggressive bets at the fed will be unwinding monetary tightening and the cuts will be imminent going into 2024. there is thinking that is looking over optimistic. we are seeing australia softer and japanese shares slipping and hong kong equity futures trending down as we get to the start of trading on mainland china and hong kong. the yen is seeing a whipsaw session falling short of estimates. still to come, our exclusive interview with the ceo of biologics. ♪

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