♪

shery: welcome to "daybreak: asia." we are counting down to asia's major market opens. haidi: our top stories this hour. it cautious mood in the markets as u.s. data does little to bolster bets on the pivot to rate cuts. industrial policy is a disappointment for investors hoping for big tickets to melissa in china. plus, cop28 negotiations in last-minute talks over a new draft agreement calling for a swift condition away from fossil fuels. cheri beasley started off with breaking news out of south korea, we are getting that an implement rate for the month of november coming in at 2.8%, higher than what economist had expected. it is also an uptick from the previous month of october where it was at 2.5 percent. suffice it to say, still very low, historically below the pre-pandemic average of 3.3% for south korea.

we know that 270 7000 jobs were added in the month of november from a year earlier. perhaps we have seen a bit of a slowdown in the services sector which is very much expected, and also many factory employment has been shrinking as of late. the jobless rate in south korea digging them up to 2.8%. haidi: take a look at how asian markets are setting up, this is the picture, in the wake of the cpi numbers. whether or not we will see much of an impact, we have seen some caution as we get ahead of the fed meeting. the 60 hour window of fast and furious bank decisions at the end of the year. we are looking at a pretty flat start to trading in sydney at the moment. we are watching the budget and whether the government can come through with any targeted assistance for the cost of living crisis and whether more focus will go towards paying down debt. not much of a move in yields,

australian and new zealand bonds. broadly do software seeing futures for japanese equities looking a bit higher, and watching currencies as well. 65.60 is what we are trading for the aussie dollar. hong kong futures are looking unchanged at this point. nikkei futures up 0.1%. kiwi stocks trading 0.4% higher. shery: take a look at how u.s. futures are coming online in the asian session. a bit of upside and perhaps extending the gains in new york when the s&p 500 closed at the highest level since january of 2022. still, the moves were small. we had cpi numbers out today. we are headed towards the fmc rate decision on wednesday. we are seeing the vix, the fear gauge retrading towards the four year low as we see more optimism in the markets. the treasury space was whipsawed today after the cpi report. 2-year yield marginally higher,

4.7 percent, although the long-term yields actually file given solid demand of an auction of 30 year bonds. following oil prices, it rebounded a little bit after falling to the lowest level in five months. we continue to see signs of robust supplies. russian exports jumping to the highest level since early july as one of those signs. it was really all to do with this u.s. cpi numbers. consumer prices picking up in what looks to be a bumpy path down for inflation. to discuss, here is bloomberg's u.s. economist gerard paula joining us. breakdown the details of that data today. >> we saw core cpi increase from 0.2% in october, to 0.3% in november and a big portion of that increase was driven by shelter and used auto inflation. so it does seem to be a bumpy path down in core inflation. the key thing to keep in mind is

the percentage of items within the core that experienced outright deflation during the month rose from 28% to 60%, so that disinflation impulse, it is becoming more pervasive. it will be a bumpy ride, but the upside surprise in both the headline and the increase in the core was driven by a narrow subset of spending categories. so that disinflation impulse, that dragged coming from primarily core goods, is going to be something that jay powell takes a lot of pride in. shery: so does this highlight the gap we still see between getting inflation down from the years highs -- it is obviously progress in one thing, but it is an entirely different thing to get it to the fed's target. stuart: it is difficult to get to the feds to percent target. you see policymakers including the secretary of the treasury janet yellen who are very

optimistic in a slow path to the 2% target. we do see difficulty in trying to overcome some of the shutter inflation that is contributing to the core. any tightness in the labor market further contributes to the super core inflation and affirms our six -- they are successful in removing inventory. so as shery was saying, it is a bumpy path to 2% permit we expect they will be more pain that the labor market has to experience if the fed will achieve its goal of the 2% average inflation target. haidi: bloomberg's u.s. economist stuart paul. chinext top leaders have vowed to make industrial policy there top priority next year, a message likely to disappoint investors hoping for more stimulus. joining us now is bloomberg's greater china executive editor john liu.

industrial policy has been one of the headline-making aspects of how beijing continues to manage that, particularly what we see with u.s. industrial policy. investors would have been hoping for more pledges of broader economic support. john: i think what we got from that statement out of the economic conference was really an expression of confidence that the economy is going the right direction. the emphasis on continuing to upgrade the economy, growing the digital economy, upgrading manufacturing. talking about the property sector not in the sense that there is an emergency and there is lots the government will do save the sector, but that will estate developers should have their reasonable demands for financing met by the banking system. that is just reiterating things that the government has done anything in that sense it will leave some people in the markets disappointed. but to see that on the second day of this two-day meeting,

president xi jinping and other top officials were arriving for a state visit to vietnam, it does express in a different way a sense of confidence that beijing knows what it is doing and it is headed in the right direction. shery: tell us a bit about the vietnam trip we heard there were 30-plus agreements from those conversations. what are the highlights? john: there was an agreement to invest to provide chinese financing for a real between the two countries. also important, there was an agreement for joint maritime patrols. vietnam and china have had a rocky relationship. part of that rocky ness comes from competing claims in the south china sea. the two countries fought a war in the 1970's. so even though china is vietnam's weakest trading partner, there is that underlying tension attitudes by the fact that the united states has been courting vietnam -- we had joe biden visiting in september.

vietnam raising the level of its relationship with the u.s. to a comprehensive strategic partnership, the same set they have with china. . so in this visit, xi jinping is trying to make sure that vietnam does not move too close to washington. haidi: what are some of the domestic challenges going into 2024 for the presidency? obviously debt as well as the economy is one thing from it but it was interesting, i thought, that the tone we are seeing from the politburo readout as well as from the economic conference seemed sanguine. it certainly didn't express crisis levels. i know they would want to do that to maintain what semblance of confidence that remains for markets. john: i think of leadership in beijing learned a lot or took a big lesson from the financial crisis of 2008, in that when china put out that 4 trillion yuan stimulus package, it sold

problems but that it resulted in a lot of the debt issues that the country is still dealing with now. there is, as a result, reticence to flood the country with money and pull out the bazooka, as it were. i think that is what we are seeing, a more conservative approach to everything even when dealing with the property sector, which i think is and will continue to be the biggest headache for beijing heading into 2024. shery: bloomberg's greater china fund senior executive editor john liu. perhaps another challenge for beijing, a bipartisan group of u.s. lawmakers recommending higher tariffs for goods from china. they want higher restrictions on investments, and called for revisiting of washington's trade relations with beijing. the recommendations underscore growing support for the more confrontational approach with china even as president biden seeks to ease tensions, haidi. haidi: and shery the u.n. general assembly has voted

overwhelmingly to demand a cease-fire in gaza underscoring a sharp shift in sentiment of israel's war against moscow. let's get more from bloomberg's editor. we have seen these expressions of dissent before. the problem with the u.n., of course, is the veto prevents it from going further. >> absolutely. besides the united nations, we have seen individual countries and groups of countries come out and say that it's time for a strategic cease-fire to allow humanitarian aid into gaza and to increase that decrease the total of civilian suffering we see just about every day in the conflict. part of the point of view from the international community is that this is not just against israel's interest, it is in the interest of a more secure israel in the future, that in order to guarantee israel a safer position in the region, they

need to be conducting this military campaign differently. shery: we heard from president biden saying that top leaders like jake sullivan and secretary austin will be traveling to the middle east this week of the conflict that continues. but we have been watching the conflict in ukraine as well, the comments coming from the news conference. tell us a bit about what president zelenskyy in his visit to washington, achieved. anna: iesco this was an interesting confluence of those two stories because obviously aid for the u.s. and israel is caught up in the same request. the white house has requested 106 million dollars in supplemental aid for ukraine, is well-, the pacific region and the southern border and right now those negotiations have not progressed. we are seeing more border demands on the republicans in the house to secure the southern border of the united states. and it really depends on how that piece of the puzzle comes together whether or not that

additional aid for israel or ukraine is going to come out. haidi: it kind of goes to the interesting topic of how much bandwidth president biden and the u.s. leadership have these two hot wars ongoing. at that it was interesting, perhaps president biden earlier when he was speaking of the fundraising event about netanyahu taking may be a firmer stance on what he sees israeli leaders need to do in order to maintain not just american support, but global support for this war. anna: absolutely, biting that he has always spoken frankly with netanyahu in private, and now we are seeing those tensions spill into the public. this is also a domestic politics issue from biden. he risks losing support for a core constituency of his in the younger u.s. voters. they are very concerned about the humanitarian tool in gaza, so there is both the geopolitical interest in making sure that both ukraine and israel have a secure future and

the place in the international community, but also the domestic political interest from biden and democrats late into an election year next year. shery: anna edgerton there with the latest on foreign policy. still ahead, we will unpack the chinese president's trips to vietnam with dozens of new agreements signed in areas of trade and transport, to joint maritime patrols. but next, the market outlook with neville lear and associates. there why they find the u.s. cpi report a bit is appointing. this is bloomberg. ♪ -- hear why they find the u.s. cpi report a bit disappointing. this is bloomberg. ♪ can i run payroll too? choose payroll without the pain.

>> we are seeing inflation slowing and it is consistent with what the fedex. >> 2% is going to be their target and they are on track to get there. >> the last mile of the inflation journey is often the most difficult. >> the fed tomorrow is probably going to signal it is done, but don't expect rate cuts anytime soon. >> the fed will probably remain on hold at least until the third quarter of next year. >> we should push back hard on because next year. >> they are going to push back against with the market is racing. >> the probability of a cut in march is almost nonexistent. even june. >> getting it fed cutting inmates seems like a stretch --

in may, seems like a stretch. >> they will go higher-for-longer and i am actually looking for powell tomorrow to push back a bit on where the market is. the inflation report feeds into the narrative. haidi: bloomberg tv guests earlier on u.s. inflation data and what it potentially means for the fed. does it change expectations? weighing in is louis navellier from level year and -- from navellier and associates. that report was, as you say, a bit of disappointment for the market and that it doesn't quite neatly fit into the project three of rate cuts. corinne: and up 4% year on year permit it was 6% just 12 months ago. marginal progress, i guess, has been made. services inflation seems overly sticky -- stubbornly sticky. we have made progress, but it is

still a long way potentially to go until we got to 2%. is that what the fed will be focused on? louis: unfortunately, yeah. i am hoping for a better feel for it to motor with dot plot, but i didn't like the fact that rent was up 0.4%. up 0.3 percent the previous month. that is a sticking point of why inflation will not come down from it you look at inflation on ex-month window, it's wonderful. -- añez on a 6-month window, it is wonderful. but we are not at a 2% annualized rate. we have 0.4% inflation for the next six months. it will be in the data until that gets cut off. so by june of next year, we will definitely be in the fed's target range. we are getting there, it is just a little bit too slow.

haidi: how big a reckoning do you think the markets face given these rapidly shifting expectations? louis: because market rates have come down, i think we are fine. so far, the treasury auctions are going ok. the way the treasury auctions work, usually the t-bills and the notes selling well. we have had some glitches with the bond auctions, but so far so good. i think market rates are actually more important. again, if we look at inflation in a six-month window, we are at the fed's target range. but it is the 12 month window that is the problem. but every month for the next six months, they will cut off 0.4% from a trillion dollars in four months, and finally we will be there in june of next year. haidi: what about the bank of japan? obviously this is a wild card in terms of dramatic pivots

that we could see from the central bank. it could happen this month, if you speak to some investors, but certainly within the next six months we are expecting. louis: let's give the bank of japan credit, they let their bond yields rise and they are a lot more significant than they used to be. .734 right now. so that is how they have been trying to strengthen the yen. they are the only central bank with negative rates. and they are not anticipated to change that policy. one of the reasons probably why is, we had deficient in china in the last two months. we even had deficient in germany. japan is a huge manufacturing economy. a couple of their competitors have falling prices now, so this is not the window for them to un-invert their negative interest rate policy on the short end.

haidi: when you look outside of the u.s., what markets most of that you about 2024? where do you see the most compelling opportunities? louis: i certainly expect energy to reassert itself in february. demand goes up in the northern hemisphere from seasonal pressure. i am very worried that these attacks russia is having could eventually hit their pipeline. several days ago there trans-siberian railroad was hit twice to disrupt their trade with china. and obviously their natural gas pipelines were sabotaged. so i am still worried about the big oil pipeline from the arctic that could be sabotaged. ukraine is getting very desperate now. obviously zelenskyy is an washington, d.c. right now and the u.s. is not ready to give him money because president biden and our congress are disagreeing on our spending

priorities. so zelenskyy is probably pretty frustrated right now. haidi: really great to have you with us, louis navellier founder and chairman at navellier & associates. much more to come here on "daybreak: asia." this is bloomberg. ♪

shery: you're watching derek "bloomberg markets: asia." argentina has devalued its currency by over 50% as part of the first batch of shock measures by the new administration to revive the country posco troubled economy. the imf says the decision will help stabilize the economy and set the basis for more sustainable and private sector-led growth. bloomberg's buenos aires bureau chief joins us, patrick

gillespie. given how early the move comes just after javier milei took office on sunday, how significant is this? patrick: this devaluation was really years in the making, considered the previous government had kept the official exchange rate overvalued for a very long time. the market had been expecting something in the order of 40%, 44% devaluation. the economy minister on the second full business day on the job is devaluing the peso 54%, one of the sharpest valuations since argentina's hyperinflation in the 1990's. he had a message for argentines and for the markets that things have to get worse, especially with inflation in the near term, if anything will get better in the medium to long-term. so we are expecting significant price hikes already seeing some prices go up 25% overnight.

so a very challenging real economy situation on the ground as the government implements president milei's shock program. haidi: and it was the same messaging in the pretty somber inauguration speech, warning that argentinians would have to endure months of pain ahead. what do we expect in terms of the early changes in this administration? patrick: what caputo might land more in detail tonight that milei had not mentioned in his inauguration speech is exactly a little more surgically what areas they will cut spending. he didn't say how much they would cut, but he said, for instance, a lot of the spending the national government gives to provinces will be cut. public works programs that haven't been started, they will be cut. if you have a government job in the past year, that contract will not be renewed. that is among the litany of, sort of a collage of measures on the fiscal side that caputo outlined would help to rein in

the fiscal deficit. and on the large side was that 54% devaluation. he focused his message as the new economic chief on the fiscal side and said to the country, in his words, has been an addict to fiscal deficits for much of its history. is trying to unpack the root problem instead of going after the causes which are high inflation and the debt crisis. argentines are not used to this, the country often has fiscal deficits and goes after inflation problems. this is a really big change of tone and policy direction. , bloomberg's patrick gillespie in buenos aires. that 54% devaluation of the i don't want you to move. i'm gonna miss you so much. you realize we'll have internet waiting for us at the new place, right? oh, we know. we just like making a scene. transferring your services has never been easier. get connected on the day of your move with the xfinity app.

can i sleep over at your new place? can katie sleep over tonight? sure, honey! this generation is so dramatic! move with the xfinity 10g network. first time i connected with kim, she told me that her husband had passed. and that he took care of all of the internet connected devices in the home. i told her, “i'm here to take care of you.” connecting with kim... made me reconnect with my mom. it's very important to keep loved ones close. we know that creating memories with loved ones brings so much joy to your life. a family trip to the team usa training facility. i don't know how to thank you. i'm here to thank you.

shery: you're watching daybreak: asia pop." chinese president xi jinping has promised to continue to from the sea and said china hopes for a deeper partnership between the two nations. they signed 37 agreements, including on a cross-border railway and joint maritime patrols, and a three year plan to boost trade. xi's visit comes as a u.s. is also trying to afford more ties with vietnam. huong le thu , deputy director international crisis group joins us. how successful do you think the visit was? >> is still going on today still. so far, quite a lot of achievement. thirtysomething agreements signed yesterday after president xi jinping arrived in hanoi. the program is full, and a range of corporation activities will

be brought, from investment to even defense patrols of the gulf of tonkin which is an important step as well in cooperation. so i think, by practical measures as well as symbolic, because this earmarks the 15th early bursary -- this earmarks the 15th anniversary of the comprehensive partnership that the two countries have, it is going pretty well. president xi jinping received quite the welcome in hanoi by the secretary-general of the vietnamese communist party. he will meet with other members of the leadership, though it is going pretty good from the media coverage. i think it is an important visit, yes. vonnie: how does it compare to president biden's september trip

where they elevated ties between the u.s. and vietnam to a comprehensive strategic ownership? -- strategic partnership? huong: president biden's visit was historical given the trajectory of u.s.-vietnam relations. only this year did vietnam and the u.s. upgrade to the same level that vietnam and china have had for 15 years. so it is sort of a different level of closeness. and there is certainly not that aspect of party to party relations. even a party secretary-general meeting another party secretary-general is intimate. it is different in terms of the nature of the visit. i think both are important on their own merits and reflective of specific sets of bilateral relationships. i think the president -- biden's visit in september attracted

perhaps more attention globally because it was such a milestone given the and vietnam's relationship -- given the u.s. and vietnam's relationship trajectory. this visit was quite important as well, but the two communist neighbors have had quite a close relationship for some time already. shery: how would you say hanoi has been balancing the relationship with these two superpowers which are engaged in geopolitical rivalry and tensions? huong: given that vietnam actually fought wars with both the giants in living memory, i would mark this as quite a successful visit. vietnam is actually giving a master class of its diplomacy, which is a post-conflict diplomacy with both giants. so i think vietnam is learning lessons from the past, from the cold war era, and from the past confrontations with both the

u.s. and china. learning that engaging with them there is better fruit than confronting them. so at the moment, especially now that the u.s. and china are completing on many levels and in different aspects, vietnam is learning to benefit from some of the opportunities coming out from that competition, including, for example, some of the western companies relocating out from china and searching for new markets and new hubs in the region. and vietnam being next-door to china and having conducive market environment, presents itself as a good relocation destination for some of these companies including big tech. in this regard, i think vietnam is positioning itself well in the competition. and, as you said, vietnam has boasted both the u.s. president

and now xi jinping. it might be the only one that this year hosted both of them. so it is presenting itself pretty well. shery: what about china presenting itself to all of these different nations as a partner? we know that president xi jinping, given president biden's visit as well, has tried to restrengthen that relationship with vietnam. at the same time, there are still forms in that relationship with vietnam given what is happening on the south china sea. huong: indeed. it's not an easy relationship, it's a relationship that has competition, but also corporation and vietnam is learning that. for vietnam, this is the most important set of relationships. if it manages to have a good relationship with china despite the dispute and despite the rising tension, and it really

dictates other policy decisions and defense decisions and so it is very important that vietnam navigates those securities challenges, and on top of that, also bears some benefits from economic opportunities. for china, i think it is important to have a euro short -- reassured neighbor next door. it considers vietnam the gateway to southeast asia and it is in its direct periphery. so it is good for the big neighbor also to have a good relationship with vietnam especially if it can benefit from that party to party affinity and, in ideology. so this is something that is certainly highlighted in this visit. secretary-general xi jinping is responding to the invitation of the secretary-general of china.

for that reason, i think china is also interested in vietnam and a good relationship, especially as vietnam in recent years has become really a sweetheart of the western world. not only the u.s. is interested in upgrading relationship with vietnam, but also most recently, japan and a number of major and middle powers from the western world as well. shery: huong le thu , really good to have you with us, we would have to leave it there. deputy director of the international crisis group. high two. haidi: let's look at how the broader australian acids are treating. the asx looking a bit overhead. 14-day rsi approaching overboard territory. we are up 7% from the october trough. take a look at the technicals, we might be nearly potentially -- nearing potentially a pushback.

not a closed-door rally. marginal gains so far in the session. also watching the aussie dollar, 65.64. for privately hit that intraday low, as we had for a lot of triggers, disappointment when it came to the cpi print. we're are watching the budget update, that shows the government -- are in better shape than expected six month earlier, but the outlook remains challenging. joining us is our economics reporter, swati pandey. pretty significant improvement. what was driving that? swati: a large part of it is commodities prices that have been better than the government forecast. the government is always very conservative in its assumption of iron ore and oil prices. another reason is a very strong jobs market. we have the unemployment rate hovering around 3.6% and three .7% in the past year. so the tax receipts of the

government have been pretty solid. these have been the two major reasons, obviously, they also benefited from strong migration, record immigration as well. largely that has helped to boost their books. shery: we are from treasurer chalmers mouse rating that the budget is in, quote, "striking distance of a surplus." so what is the outlook? swati: we had an economist from westpac saying that it will likely be a surplus. the government is just being ultraconservative is saying that it still has a small deficit. but it is likely we will have a second straight surplus. the outlook is challenging from here. they are facing higher interest payments on their debt because of how-year yields and higher interest rates. and there is also this long-term pressure on the budget from an aging population. on health care, as well as other

welfare related pavements as well. there are these long-term budget pressures which will keep the budget in deficit for the foreseeable future, and that is what the government is showing as well. haidi: are they different when it comes to what the rba is being? swati: so in terms of their economic forecast, the government is actually predicting better employment -- sorry, a worse employment profile than the rba. but they are expecting inflation will fall back into the rba's band earlier than the rba is predicting. so in that sense, the treasuries forecast -- the treasury's forecast looks more optimistic than the rba forecast. that could be because of their expectation around cutting spending and fiscal consolidation that the government has been constantly talking about. the rba will definitely welcome this, because it shows that

monetary policy and fiscal policy are aligned. but given we have fiscal deficits in the year ahead, it shows that the government donates to cut back on spending to really align with monetary policy. haidi: our economics reporter swati pandey there with the latest. we are watching sigma health care in the sydney session. look at the surge in the stock this is on the back of the chemist warehouse deal. this is off session those, up almost 41%. at one point it had searched 82%, almost a record. the sydney-listed health care company agreeing to merge with chemist warehouse, a big pharmacy chain in australia, to create a whole spill and retail -- wholesale and mr. better retail franchisor that would have a market cap of 4.8 million australian dollars. upon the start of trading, clearly seeing a big jump. the proposal of acquiring

chemist warehouse is an exchange of shares and cash consideration. we continue to watch that. it is coming down a little bit, but it was up as much is 82%. coming up next, climate negotiations continued to work on a draft agreement as cop28 draws to a close, we will get an update on how the withdrawal from ossil fuel usage might feature. this is bloomberg. ♪ thanks to avalara, we can calculate

sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh hey! sarah! if you had to chooseh would you listen to elevator music all day or deal with payroll compliance? payroll compliance, for sure. gusto automatically calculates and files my taxes for me. hold up, compliance? easier? choose payroll compliance without the ups and downs.

shery: welcome back. the final day of the cop28 climate talks in dubai went into overtime. the first draft of a deal designed to bridge the gap have been criticized as too week by many nations. bloomberg su keenan joins us. we have continued to see the diversions and opinions in those discussions when nearing a final text -- are we nearing a final text at this point? su: there were meetings into the early morning wednesday hours in dubai, and the last minute negotiations were fired by optimism on the part of some participants who these deep divisions mainly on finance and the future of fossil fuels that

brought criticism from participants, mainly the u.s. and the e.u. as being too weak in the first draft, they thought they could get an agreement. i knew draft has much stronger language on the search transition away from fossil fuels. there was a view that saudi arabia, which has been strongly opposed to any fossil fuel cuts, and other fuel dependent nations, that if they could agree, that that would seal the deal. diplomats and we are running between bilateral meetings and have huddled well into the morning hours. u.s. envoy secretary kerry has had the document is stronger on fossil fuels and that, quote, "progress is going in the right direction." a tax is a more forceful commitment to reduce greenhouse gases well still steering clear of promises to phase out fossil fuels which irritated these

fuel dependent nations like the saudi's. so the so-called outcome document, we understand, has drafted. there has been no formal wouldn't fourth of this document as of yet, but we are continuing to monitor the progress. haidi: meanwhile we are seeing oil studying a bit in the asian session, but still under quite a bit of russia. su: iesco definitely in the new york session, we saw wti go 4% down to below six to nine dollars, coming back a bit in asian trading. this is part of a steady decline. it's all because of continued concern about rising supply from non-opec members like the u.s., and now, russia. all of this is creating a concern about a global oil gut. russia's seaborne crude exports rose, due to a big jump in weekly flows after the storms that we talked about that disrupted the black sea shipments.

well, that storm is finally over. loading sword at one key russian port with nonstop activity all week, and wti prices have already been on a 7-week decline, the longest losing streak since 2008. now under pressure again going into this week. one oil veteran notes futures are trying to solidify and find a bottom from last week's enough. he says the contango structure is signaling the current supplies seem more than ample. back to you. haidi: bloomberg su keenan there. take a look at some of the other climate-related stories we are tracking today. u.s. government data shows that power generated from solar and wind systems will surpass burning coal next year for the first time. coal is producing 70 billion fewer kilowatt hours as more utilities close aging. power plants the u.s. is affected to install 20 gigawatts

in solar capacity and 27 gigawatts more year. the arctic saw its warmest summer on record this year,'s report card shows the region experienced an average temperature of 6.4 degrees, .5 degrees higher than the previous record set in 2016. the report also highlights polar climate trends including shrinking cis and warmer surface temperatures. in november, the u.n. declared 2023 as the hottest year on record. coming up, ad revenue for the social media platform x is expected to slump next year. details on that bloomberg scoop is next. this is bloomberg. ♪

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

shery: we have breaking news out of japan, we are getting the fourth quarter tankan survey with large manufacturer sentiment index, in at 12. leading economist expectations. also an improvement from the previous number at 9 in the previous quarter. when it comes to the nonmanufacturing sector, we are seeing that the index has also improved more than expected to 30 from 27 in the previous quarter. when it comes to the outlook on

spending by these big manufacturers, it's also coming in in the double digits of growth of 13.5% for this fiscal year, really showcasing better sentiment ahead of the boj meeting next week. when it comes to the small manufacturers, it is really -- it has arisen into expansionary territory. the fourth quarter, 1, coming from a contraction of -5. sentiment seems to be improving across japanese corporations and we are seeing the inflation outlook for the year communion at 2.4% year on year as well when it comes to these manufacturers' expectations for price pressures in the coming year, heidi. haidi: let's turn to our bloomberg scoop. we have learned that social media platform x is on track to bring in roughly 2.5 billion

dollars in advertising revenue this year, a significant slump from prior years. let's get more details from our technology reporter, kurt wagner who joins us in san francisco. we have heard elon pretty colorfully address his woes when it comes to advertisers and it seems the numbers would support that. kurt: this is a reflection of how people feel about him and his behavior. it wasn't that long ago that he was on stage dropping expertise against advisors and calling their decisions to boycott twitter the equipment on blackmail. so i think this is the theme that is not new, it is something we have seen since he took overtly last year, and i think these numbers but i've reflect the fact that a lot of advertisers are comfortable with spending money in the place where the owner is pretty unpredictable. shery: we have seen in the strategy also veer into other

parts of the business. how important is advertising at this point and how much will that change in the future? kurt: advertising at x, formerly twitter, was always the majority of the revenue. it used to be 90% of revenue and it is now 70% and 75%. it is becoming less important. presumably because they aren't making that much revenue. the company would like to move away from that, they are trying to get into subscriptions and more data licensing and they don't want to be so dependent on these advertisers who do get sensitive when the ceo comes out and set certain things. so i think they figure subscriptions in particular, if that could be a big business for them, it would take pressure off the advertising side. as we have seen, though, that has not materialized in the way that elon hoped it would. shery: bloomberg's technology reporter kurt wagner joining us

from san francisco. other stories in the tech industry that were following -- apple is adding a feature to iphone to prevent thieves from getting access to critical device data in the event that they knew's a user's passcode. it has version features and enhancement of that would require a face or touch i.d. to access settings like payment information. it is unknown when the new feature may roll out to all customers. netflix has released viewer data for every title on its platform for the first time. the release covers more than 18,000 films and shows that generated more than 100,000 viewer hours. it follows the-month long fight between labor unions and major studios. asml and sanford electronics will spend money to build a south korean planned to develop cutting edge semiconductor processing technology.

the dutch company says the facility will use its next-generation extreme ultraviolet equipment technology. the deal expands asml's presence in korea where it is already serving customers including samsung. south korea has unveiled a five- year $29 billion package aimed at helping local and electric vehicle battery makers diversify supply chains. the finance ministry says you in securing's administration wants to boost the south korean industry from riding to recycling. this comes as the u.s. calls on reduce reliance on chinese made batteries. coming up, we will be talking broader markets with julius baer. this is bloomberg. ♪

the power goes out and we still have wifi to do our homework. and that's a good thing? great in my book! who are you? no power? no problem. introducing storm-ready wifi. now you can stay reliably connected through power outages with unlimited cellular data and up to 4 hours of battery back-up to keep you online. only from xfinity. home of the xfinity 10g network. (jennifer) the reason why golo customers have such long term success

is because we focus on real foods in the right balance learn more today. so you get the results you want. when i tell people how easy it was for me to lose weight on golo, they don't believe me. they don't believe i can eat real food and lose this much weight. the release supplement makes losing weight easy. release sets you up for successful weight loss because it supports your blood sugar levels between meals so you aren't hungry or fatigued. after i started taking release, the weight just started falling off. since starting golo and taking release, i've gone from a size 12 to a 4. before golo, i was hungry all the time and constantly thinking about food. after taking release, that stopped. with release, i didn't feel that hunger that comes with dieting. which made the golo plan really easy to stick to. since starting golo and release, i have dropped seven pant sizes and i've kept it off. golo is real, our customers are real, and our success stories are real. why not give it a try?

haidi: this is daybreak: asia. we are coming down to asia's major market opens. u.s. stocks rising. the moves were very small given that we are focused on the upcoming fomc decision. we have u.s. cpi out of the way. we saw prices picking up which shows that the right down for inflation will be pretty bumpy. haidi: yeah. and not particularly straight trajectory. i suppose the question now is focusing on how it changes the tone of communication from chair powell, from the fomc as we see the gap between, it's not 6% but it's not too present and there is a shery: way to go. shery:that in itself will make a lot of difference for how japanese asset trade. we continue to see this huge rate differential with the boj keeping its monetary policy alter lose. take a look at the right now. we are seeing a little bit of

strength on the yen after we saw option traders really positioning for stronger currencies headed into the boj decision. as we head toward that decision next week, we saw large manufacturers in japan. their sentiment improving. we saw that rise from of it -- an estimated 10 and nine in the previous quarter. when it comes to big manufacturers positioning for the japanese yen, they expect it to be stronger. 130 level this fiscal year. nikkei gaining 4/10 of 1% for a third consecutive session of games. take a look at the kospi. we had gained ground in the previous session. we are now coming online down about a quarter percent for the kospi and the cossack. we are seeing the korean won also holding steady, perhaps a little bit of strength given that we are seeing the dollar marginally down after the cpi numbers.

and we are seeing 13:12. south korea has the job market report as well. the november jobless rate actually rose to 2.8%. really higher than economists had expected. still below the post-pandemic average of 3.3%. haidi: take a look at australian assets. there are some signs. a look at the technicals. we are headed for possibly a bit of a near-term pullback for the a sx. if you take a look at the 14 day, it looks like there's a bit of overheating there for the afx. up 7% from the troughs of october. potentially that puts us on a rally. the index hitting the upper band and approaching overbought territory. take a look at the 14 day at the moment. one outperformer on the back of

the warehouses deal. it rose by 80% at one point. certainly a stunning outperformer on a pretty muted session here in sydney. not a great deal of moves when it comes to the aussie dollar. 65 is still where we are trading at the moment after a session where the dollar hit an intraday low with muted response to november cpi numbers as well. we are also watching for that media budget update from the government which is expected to show that the australian budget is looking healthier come tomorrow robust than expected. the outlook remains challenging. this is the picture when it comes to treasuries. the question is really whether we see this kind of repricing when it comes to the bond market from an adjustment of inflation and fed expectations. treasuries going to again after solid demand at the 30 year auction. pretty lackluster demand for the auctions over the past couple

days also. we saw the yield of about 4.3 for that 30 year. long and treasury demand seeing a reignition. ahead of still some uncertainty in terms of what we expect from the fed and from chair powell. shery: let's bring in our next guest who says most investors were not position for the fireworks of november. nor are they fully positioned for a good year in 2024. with us is mark matthews. always great to have you with us. is the idea that we are going to have a good 2024 predicated on the fact that 2024 will be the year of the pivot, whether it's the federal reserve or boe? mark: partially. i think so. we believe the ecb will be the first to move among the major central banks in march. we don't expect the fed to cut until september. but that's ok. i think we've seen this year

that markets have been surprisingly adept at handling these high interest rates. i don't think that will change if the leadership remains in the big technology stocks which we expect it to do. haidi: what are the chances of disappointment? it seems like product -- markets are pricing in for a lot of easing next year. mark: well, if they are expecting a rate cut in may, i think they will be disappointed. you would have to see a significant deceleration in the economy for that to happen. i have a feeling they will take it in stride. as i said, the generative ai and the massive investment we can see that these big tech companies have been doing in data storage capacity to accommodate this impending revolution i think will remain. the revenues and profits of the big technology companies remain

extremely strong. as you know, there is a significant part of the s&p. use nvidia as an example. their pe this year which is 60 times will be 25 times next year. they have an r.o.e. of 70%. i don't see how you can call that expensive. haidi: we have seen that breath has been lacking across the s&p 500. is that concerning when it comes to potential gains next year? mark: well, we started to see this month a bit of a broadening in the market to those other companies. i don't think so. if you look back in history, narrow breath. i know it sounds intuitively like that should be some kind of negative indicator. historically, it has not been a predictor of poor future returns. breath has been very constrained to these big tech companies.

maybe it broadens a little bit. but we believe that they will continue to be the leaders until they don't have a good story anymore. i think they are going to have a very good story at least for the next year. shery: what about china? will we see a good story there? we have the work economic conference. we've seen more pledges to do more for the economy from policymakers. at the same time, it doesn't seem to be clearly targeted towards demand stimulating measures. mark: well, china is the proverbial story of the boy who cried wolf. but in that story, in that fable, eventually a wolf did come to the village and eat all the sheep. eventually the chinese market will bottom. i think it should be very close. it's the hang seng index, the worst performing stock market in the world this year. it's down about 20% this year. this will be the fourth year and around that it's had a negative

return. in its history, that goes back 60 years, has never happened before. so if you just sort of adopt the dogs of the dow strategy of buying the highest dividend companies -- by the way, the hang seng has a dividend yield of 4% in pe of nine. i suspect that it's going to do well next year. i think it's going to be in a band because of all the things that have happened in china. not unlike the bands that it traded in between 2010 and 2015. we are right at the very bottom of the band now. i think it could easily rally 20% and then stick around here. shery: there has been so much volatility. we are now hearing from the survey from the boj. large manufacturers are positioning for a 138, ¥30 this fiscal year. are we going to see more strengthening of the currency?

what would that mean for the broader stock market? mark: if the currency strengthened, intuitively that should be negative for the neck a. if you just look at the inverse directional correlation, those two have historically had. we don't think the end is going to strengthen. we think 145 is fair value based on the boj only raising rates once. so we think they raised once to zero and then they don't do anymore. way to himself said that the wage negotiations next march will be absolutely crucial to his policy decisions. you can see the wages in the most recent numbers have been softening in nominal terms and real terms. so is household consumption. so has gdp. so i think what is happening is that the japanese economy is starting to soften and that will

be an excellent excuse for the bank of japan to remain very dovish. shery: mark matthews, get to have you with us with his views on the broader markets. breaking news out of argentina. argentina will be targeting a 2% paso devaluation per month. earlier today, we heard that strategy coming from the economy minister that argentina was planning to devalue their currency by 54%. they also had announced a series of spending cuts as the four steps shop the program in order to boost the economy. we know the argentina government is planning to cut social security and pensions by 0.4% of gdp. it will also cut transport subsidies to's -- to save two percentage points of gdp. we are expecting the central bank of argentina to to -- to make monetary policy announcements on wednesday.

we will be looking forward to that. we've heard the administration weaken the official exchange rate to 800 pesos per dollar. we are hearing that they will be targeting a 2% devaluation per month. haidi: certainly a pretty big move. perhaps one that was not at all on the flagged going into the administration taking over. take a look at the movers we are following when it comes to the trading session in seoul. korean entertainment is moving on some netflix user data that we are seeing, the lakes -- likes of dexter studio. some of the big movers. 1.9% lower is what we are seeing for content tree and one of the biggest laggards there as well. down by just about 3% in the early part of the session. some of these k drama production related stocks are be -- seeing a decline. that showed the popularity of

korean content on the platform. studios records, one of the third most popular series and netflix of the first half of the year. we are not seeing a great deal of positive reaction. we are also watching spi there. spi securities suspected of manipulating stock prices. we are seeing spi holdings down by about 2.8% there. the nikkei reporting that japan securities and exchange surveillance commission is considering recommending that it minister eight of action be taken against spi holdings the brokerage. still ahead on daybreak, china's homemade passenger jet on display for the first time. seeking to win customers from boeing and airbus. we get analysis coming up in the next hour. first, australia's budget now within striking distance of a surplus for the second year. details on the update including

the most latest forecasts, next. this is bloomberg. ♪

shery: china's top leaders have vowed to make industrial policy their top economic priority next year. likely to disappoint investors hoping for more consumer focus stimulus. joining us now is john you. what sort of support are we expecting from the government? john: the readout that we got from this conference was one that pretrade the leadership as seeing the economy as, there are challenges, problems but the economy overall is pretrade as doing as -- ok. they are going to take the opportunity now to work on upgrading the industrial infrastructure, structural issues, building for tomorrow. and i think also good to point out that, trying to make china's supply chains more resilient. obviously there are the ongoing tensions with the united states and europe. i think that will be disappointing for any market

participant whose vision of the economy right now is one that's in a lot of trouble, one that needs help immediately. i think that's where the disappointing will come in. shery: what did we get in the tone from senior leadership? one analyst said it sounded almost sanguine. they are strike -- trying to strike a confident tone. john: i think there's two things. on one hand, whatever the leadership is thinking in private, we don't know. but in public, they are trying to portray a sense of confidence in the economy. they are trying to portray looking forward into the future, that the economy has turned the corner already. second i think is, there is more of an emphasis on security issues, diplomacy than there has been in the past. especially vis-a-vis the

economy. we've seen that in the data security issues that have,. some of the issues with national security as well. so i think that's coming into play in this messaging as well. shery: we have president rick: -- president xi in vietnam. what are we getting from that relationship? john: i think that's a very good point. the second day of this two-day conference, president xi and a lot of senior leaders were there in vietnam arriving for the first day business since 2017. important to point out that this visit comes after joe biden visited in september. the two countries have a very rocky relationship. china is vietnam's biggest trading partner. economically, very vibrant. a lot of trade happening. at the same time, there are

disputes about the south china sea. these countries fought a war in the 1970's. there's an ongoing sense of mistrust and suspicion there. with vietnam getting closer to the united states, i think this is an example of beijing not wanting vietnam to get too close to the united states. haidi: here in australia, the governments books are in better shape than anticipated six months earlier. the outlook remains challenging. joining us now is paul allen. a lot of this has to do with commodities prices. paul: the planets have really lined up for the economy on this one. the forecast to keep on being strong. the iron ore price forecast, still very conservative but the government always airs on the side of caution when forecasting that. plenty of money around.

the question is, what do you spend it on without fueling inflation? the answer in this case is getting rid of debt. interest on debt, now the fastest growing pressure on the but it -- budget. in terms of growth, gdp traffic -- troughing. cpi crucially getting back to the rba's target range. shery: the treasurer seemed optimistic about a potential surplus. what's the outlook? paul: the outlook is also pretty good. although it wouldn't be a huge surprise if we did see a surplus . there could be an element of politics at play. the government may be unwilling to forecast a surplus because

that would rate all sort of questions about, you have all this money, what are you doing about cost of riffing -- living relief? that deficit much smaller than the deficit forecast in may. two surpluses in around. certainly within the realms of possibility. in terms of cost of living, how do you address that without fueling inflation? one possibility could be relief on energy bills, more discounts there. we've seen that before. there was a little bit of spending here. 5 billion on the housing supply. spending very much deliberately on the conservative side. shery: paul allen there with the latest on australia's budget. you can get a roundup of all of the stories that you need to know to get your day going in today's edition of daybreak. bloomberg subscribers go to gb go. you can customize your settings so you only get the news on the industries and assets that you care about. this is bloomberg. ♪

(adventurous music) ♪ ♪ ♪ be ready for any market with a liquid etf. get in and out with dia.

we all work differently now. so cdw helped us deploy mac, supercharged by apple silicon. ♪♪ built-in security protects me from malware and forgotten passwords. i've got enough battery life to get me halfway around the globe. and lower overall costs leave more money in our budget. for more practical furniture? this was supposed to be hip. no. can you help me up? with mac, configured by cdw, a solution that works for everyone isn't just possible,

it's powerful. shery: the united nations general assembly has voted to demand a cease-fire in gaza come under storing a shift in sentiment over the war against hamas. let's get more from michael hayes. individual nations also calling for strategic cease-fire. we've seen president biden a little bit sharper in terms of pressing netanyahu to come back to the two state solution as well. a lot of pressure on israel. michael: there's two different things in a sense. the general assembly reflects the growing concern in the world that the civilian casualties, basically society has broken down inside the gaza strip. it's a real reflection of that.

all these places announcing a support for call for cease-fire. obviously it isn't going to happen as long as the u.s. is supporting israel. biden reiterated that in his recent remarks on netanyahu. it's interesting. what happens after this war is a really serious question. netanyahu is very widely. he raised the oslo accords from 1993 which was probably the closest the world has come to resolving this issue. the u.s. after the first iraq war pressed israel and for state and the palestinians to come up with a peace plan which eventually broke down and violence. biden is basically determining that this is on the agenda. this is part of the issue. he understands where netanyahu is coming from. that yahoo! is leading the most right wing government in israeli history. he's giving netanyahu an out in

a sense. he says that right-wing government gives him no room to maneuver. it will be fascinating to watch. as the situation in gaza now, catastrophic. the un's general assembly reflected that in its vote with people either abstaining or voting in support of a cease-fire. the pressure will only grow. biden said that as well. there's only so much that he can do to keep that from people starting to join the chorus for cease-fire. haidi: we heard that top u.s. officials will be headed to the middle east this week. how much pressure can come from the u.s. on israel? to be more mindful of civilian casualties. michael: it's a really interesting question. on one hand, you could say they could -- exert an arm us pressure. the u.s. provides financial

support to israel. it's carrier groups off the coast of israel deter around and these other countries from potentially widening the conflict. it is central. on the other hand because it is such strong public support for israel in many parts of the u.s. , it's almost constrained and what it can do with israel. it can't go too hard on it because there's a risk of domestic backlash there. they are trying to convey that the u.s. is powerful, the u.s. can veto u.n. resolutions, but at the end of the day, the u.s. can't stand up against the whole world if israel keeps acting indiscriminately in terms of its bombing campaigns. these are words that are worrying. they have to worry the israeli administration. shery: the failure to secure more aid. this is a mess when it comes to

border reforms. does it indicate that the stretch -- michael: it does. zelinski is an incredibly charming guy. some of the reports we got out of his meetings with the republicans was that they were very inspired by him. they are determined to keep it linked to border immigration solutions. for the u.s. political class, losing ukraine would be losing china and 49. it would be catastrophic. they will fix it. haidi: more to come here on daybreak: asia. this is bloomberg. ♪ (announcer) enough with the calorie counting, carb cutting, diet fatigue, and stress. just taking one golo release capsule with three balanced meals a day has been clinically proven to repair metabolism, optimize insulin levels, and balance the hormones that make weight loss easy. release works with your body, not against it,

so you can put dieting behind you and go live your life. head to golo.com now to join the over 2 million people who have found the right way to lose weight and get healthier with golo.

shery: take a look at how markets across asia are trading. the nikkei gaining ground for a

third consecutive session. tech come utilities leading the gains. the energy sector is weighing on the index, given the losses that we saw in the previous session in new york where oil fell to the lowest in five months. sentiment among large manufacturers has improved. the kospi is also reversing those gains that we saw in the previous session. the jobless rate rising to 2.8% from around 2.5% in the previous month. still really a low rate given the post-pandemic average of more than 3%. asx 200 seeing gains. government books are in better shape than had been expected. we are heading towards trading in china. sources telling bloomberg that country garden is likely to avoid its first default on bonds after most holders agreed not to demand repayment this week. for more, let's bring in loretta

chan in hong kong. so what is the onshore bond in question right now? what kind of credit protection to give creditors? -- did it give creditors? loretta: this result was really hard fought by both the company and the regulator in china. they have an early redemption option for the investors. the exchange has been talking to holders of one of the notes which has a credit default swap, plus an early redemption option, trying to convince them not to ask for early repayment of the bond. so this week, we learned that none of the investors proceeded with that early redemption requirement which helped the company to essentially manage to avoid in onshore default. haidi: how significant would it

be for country garden to avoid a default? loretta: i think importantly, we have to distinguish for these developers what happens with their on share -- onshore debt versus their offshore debt. country garden has defaulted on the bother you -- dollar bond in october. since then, it's been trying to avoid such a scenario because the result or the consequences of that happening would be catastrophic to inspire confidence onshore and also to the wider property market. so i think that result is widely expected. we've seen in the past that chinese developers have been prioritizing onshore investors over foreign investors. this is yet another example of how foreign investors are left with a multi-year process of restructuring while the onshore investors managed to dodge that default scenario and managed to avoid huge losses.

haidi: let's get you a preview of the market open in the mainland. china's top leaders are vowing to make industrial policy their top economic priority this year. asia equities reporter is in hong kong. we keep looking for catalysts to lift sentiment. how low his confidence when it comes to mainland equities? they are probably not going to get it from the central economic work report conference. >> yeah. for equity investors, it's no major surprise from the central economic conference. china's policy is going into 2024. it's going to be progrowth. that's basically confirming the message and signals we got from the meeting last week. the market has really digested that. investors now have to wait longer to figure out how the

government, what kind of fiscal measures we will be expecting. there's nothing new there. even though the government has properties for living. that's not enough to show investors the way forward. we are likely to see specific actions. the government has made it a clear priority in industrial policies as well as specific sectors. equity in vector -- investors are expecting more products. consumption support measures instead of sweeping packages at this stage. shery: are investors more optimistic when it comes to the longer-term outlook of the chinese stock market?

given the losses that we already saw in 2023. csi 300 has seen declines of more than 10% at this point. charlotte: i think at this stage, there is not really this confidence. you mentioned how the market has underperformed. the valuation story is intense. into 2024, people are still waiting for the domestic economy recovery. we didn't get much clue in terms of if there would be any big fiscal package. i think it's very important to remember how the regional set up so different. japan, india, everyone is so bullish. the economy looking so strong here. there is still a lot of uncertainties in china. shery: what to expect from the

chinese stock market. china's financial policy makers are in hong kong this week. seeking the steady status as a hub for talent. sources tell us that officials from the ministry of finance our meeting with bankers on wednesday. the discussions will center on how to enhance hong kong's position as international finance center while strengthening ties with the mainland. still ahead, china's homegrown commercial passenger jet is making his first trip outside the mainland, set to go on display in hong kong. more next on china's chances of competing with boeing and airbus. this is bloomberg. ♪

shery: china set to show off its homemade passenger jets with the display in hong kong on their first trip outside of the mainland. joining us now is our asia transport reporter. so tell us a little bit about this jet and the likelihood of it competing with jets from the likes of boeing and airbus. >> is a really exciting day.

commack has brought its two passenger jets to hong kong. all the attention will be inevitably on the c 919. the first time that it has left the chinese mainland. it has a big stage. actually showing off what it can do with this particular jet. obviously it doesn't have any foreign buyers. only chinese airlines. therefore trying to drum up sales and attention. this is its big moment here. officials from the city and the airport will be celebrating its welcome. it arrived yesterday. so we will be giving a tour inside the plane to see what it's like. haidi: you talked about the uphill battle in international markets.

what are the ambitions for china here? dan: particularly using the jet, china wants it to rival airbus and boeing. these are the two most profitable sets of aircraft for boeing and airbus. china being a huge aviation market and set to be the most big in the years to come, come back has an opportunity to really set its agenda and also drum up a lot of sales from the potential market. not just in china but globally as well. it is still yet to find its feet. it's only been able to deliver three commercial jets so far in a year. therefore, it's ambitions are really going to be tied to how many aircraft it can produce. also just how many sales it can drum up. in excess of 1200 jets. it managed to secure a recent top up order of 100 jets to the

tune of $10 billion from china. really it success will be whether it can really go global. that is still yet to be seen. even right now, they are only for -- flying for five hours per day. it still has a lot of work to prove what it can do and how capable it is here in hong kong. haidi: danny lee there in hong kong. let's get more analysis. great to have you with us. i will go back to where i was alluding to with my question to danny just before. what are the ambitions for this playmaker? what's the anticipated market, looking beyond the chinese airlines? >> thank you for the question. basically the ambition is to have this aircraft be a global

competitor to the boeing and airbus narrowbody aircraft. of course, it is starting out from chinese mainland. now it's coming to hong kong. hopefully it will go through many markup -- countries. first things first, they have to develop and make sure that the aircraft is certified by the faa which is recognized by many countries around the world. at the current moment, it is certified by caac. so that's definitely one part to get over. many places in southeast asia as well as africa, friendly companies -- countries to china to start things off. haidi: how successful do you anticipate that's going to be? >> it's definitely going to take some time. if you look at any new market

entrant in this space, the most prominent one is actually airpods -- airbus itself, it's taken a while for the aircraft and its products to be accepted by the world stage. before then, it was going against boeing which was the loan player. they are going to have some time to get developed and prove that the aircraft itself is operationally what it stood out to be. at the end of the day, be profitable for the airlines to operate them. haidi: is co-mac seeking faa certification? how challenging with that process be? david: it's definitely in talks with doing so. that process, given the current situation geopolitically with the u.s., would obviously create some hurdles in that respect.

so in the meantime, the point is being tested. hopefully will get more traction both from the domestic operators but also some of the other folks in the region. haidi: how much demand is there? could that be an opportunity for china? you said there's been a lot -- a lag in supply. does that mean that if we could see faster ramp-up, there is that opportunity there? david: definitely. at the moment, there's a slow order of production by the other two major oems. there's a lack of aircraft, both brand-new as well as used. airlines want to come back and grow and replace their existing fleet. so if they can step it up and increase their production, this will be a great time to sell new

aircraft as well as place them in places that i think would otherwise take longer to get traction. it will be a great time if they can take advantage of it. haidi: really great to have you with us. super interesting, whether we could see market opportunity for this plane given just how much appetite there remains for aircraft. shery: we will continue to see how much of a rebound we could see in asia. take a look at these other corporate stories we are following right now. apple adding a feature to iphones to prevent thieves from gaining access to critical devices in the event that they know users passcode. a beta test version features and enhancement which requires face

or touch id to access settings including payment information. it's unknown whether the new future -- feature may rollout to new customers. netflix has released fewer data for every title on its platform for the first time. it covers more than 18,000 films and shows and generated between 50000 and 100,000 hours of viewing time. the most detailed the closure follows the fight between hollywood labor unions and major studios. samsung electronics will spend $760 million to build a south korean plant to develop cutting-edge semiconductor processing technology. the company says the facility will use its next-generation extreme ultraviolet equipment technology. the deal expands asml's presidents in korea where it already has four sites serving customers including samsung.

bloomberg has learned that goldman sachs executive and emerson is stepping down. emerson oversaw the resurgence of the commodity trading business after pre-pandemic slump. sources say he's one of the highest-paid executives at goldman sachs, earning $100 million over the past three years, even more than the ceo whom emerson has criticized over strategic missteps. more to come on daybreak: asia. this is bloomberg. ♪ an ever-changing landscape comes with challenges. from our vantage point, we see opportunities. as a top-ten real estate manager, we harness the power of a 360° perspective, delivering local insights and global expertise across public and private equity and debt. our experienced team and vast network uncover compelling opportunities giving our clients an exclusive advantage.

principal asset management. actively invested.

shery: for a long time, we've talked about this build up the world economy. with borrowing costs at this level across the world and with the higher for longer narrative as well, we are now seeing the world's poorest countries struggle under $3.5 trillion in debt. we are talking about 2024. these nations known as rich world investors, frontier markets will have to repay about $200 billion in bonds and other loans. the bonds issued by my home country of bolivia, ethiopia, tunisia, and a dozen other countries are already in default or trading at levels that suggest investors are bracing for them to miss payments.

haidi: after a decade of borrowing, now it's the time for the catch up, for the world's poorest nations. $200 billion in bonds and other loans issued by bolivia, if you'll be a, tunisia and a dozen other countries there. the situation is particularly dire because these nations have small the mystic markets. they must turn to global lenders for cash to spend for infrastructure, hospitals, roads , things they want to build. this comes at a time when china's economy is slowing in a way that it never has before. china used to be the financial rep first resort when it comes to a lot of these emerging smaller frontier nations. the buildout of big infrastructure proposals and marquee projects like belt and road for example. it was such a big component of that. we know that that landscape,

when it comes to debt diplomacy, has really changed as well. shery: with the slowdown in the chinese economy and unexpected slowdown in the u.s. economy, even a potential recession, though smaller economies are expected to suffer the most with those ongoing financing concerns. of course, also there's been big divisions between the global south and other more advanced economies. when it comes to climate change. the final day of the cop 28 climate discussions in dubai ran into overtime due to deep divisions about fossil fuels. the first draft of a deal designed to bridge that gap had been criticized as too weak by some nations. su keenan joins us now with more on this. what's the latest? su: 200 countries were deadlocked. final discussions really caused

disagreement. the last-minute negotiations were fed by a bit of confidence that they could somehow still bridge division on finance and the future of fossil fuels. these are the key areas that got criticism from participants like the u.s., the u.k., the eu and country's most vulnerable to extreme climate change. the language at issue was key. phaseout, phase down, or different formulations when it comes to starting to get rid of the use of oil, gas, and coal. a new draft that was viewed by bloomberg news has much stronger language on the swift transition away from fossil fuels. that's more the language that's not being used. if saudi arabia, which opposed the fossil fuel cut and other fuel dependent nations could agree, that would really seal the deal here. we know that diplomats were running between bilateral meetings and huddled over revisions or get there is still no final outcome document as it's called that's been released.

but again, u.s. senators who have looked at the new text on this document say it is stronger on fossil fuels and progress is moving in the right direction. shery: oil futures are steadying a bit in the asian session but still quite a bit of pressure that we saw. su: this was a big drop in the u.s. session, down almost 4%. west texas closing below 69. this is part of a steady downturn that we've seen out of concern of oversupply. not only from the u.s. which is upping its output but also from russia. the latest statistics showing that on a four-week average basis, there's a lot more oil coming out of russia. a lot of this has to do with the jump in weekly flows after storms that had disrupted shipments out of the black sea, though storms have come to an end. loading sort out one of the key russian ports.

if you drop into the bloomberg's, the prices have been on a seven-week decline. we are already looking at the longest losing streak since 2018. now there's been additional pressure this week. one veteran oil analyst notes that futures are trying to solidify and find a bottom from last week. he says that the contango structure, the back month futures that are now counting on front months, is setting the tone that current supplies seem ample. other key gauges that a lot of traders and analysts follow, those were also signaling oversupply. as you can see in those charts, the near term trend continues to be lower. haidi: the latest climate stories we are following. u.s. government data showing that power generated from solar and wind will surpass: year for the first time. coal producing 17 fewer -- 17 bill your fewer kilowatt hours.

developers expected to install solar capacity this year. 37 gigawatts more next year, making it the fastest growing source of new generation. the arctic saw its warmer summer on record this year. a new report showing that the region experienced an average temperature of 6.4 degrees, half a degree higher than the previous record in 2016. it highlights polar climate trends including shrinking sea ice, warmer surface temperatures. in november, the u.n. declared 2023 the hottest year on record. still to come, a closer look at china's economic market outlooks. officials vowing to prioritize industrial policy. ♪

yvonne: