♪ >> chinese markets return from the golden break, traders watching for reactions. >> a forecast from the fed storms the payroll numbers, but rates are expected rise in december. put curbsys it's out are rebalancing the market, but extraordinary steps maybe still needed. >> and donald trump calls a senator a coward, he responds by saying the white house is an

adult day care center. >> always amusing. hello from sydney, it is just past 9:00 a.m. we are an hour away from the opening of asia's first major markets. just after 6 p.m. in new york. we will be looking at all the action in wall street playing into the asian pacific day. that tweet from senator corker getting over 100,000 likes and counting. outside of the social media sphere, let's look at the jobs. paul, we got these numbers that are largely discounting the hurricane impact. we saw the client and payroll. what shocked economists is how robust the wage growth was. ont has turned all eyes december, almost a sure fire guarantee rate hike in december.

you saw markets rattled a little bit by that. s&p ending a little lower by that, down 1/10 of 1%. the nasdaq also ending pretty unchanged, there were some tensions with north korea, keeping some bowls at bay. -- bulls and they. china is finally opening up where you are after golden week. paul: it will be an interesting day with china coming back online and the first opportunity for markets here to make something of a mixed bag of job numbers out of the u.s.. let's take a look at what has happened. new zealand has been open a little while, trading up ever so slightly, almost flat. the kiwi dollar is weaker. we are expecting to have news of the government being formed in new zealand by thursday, although that could slip. let's look at futures in australia.

currently, also kind of flat. about six points right now. strengthening a little it hit a three-month low over the weekend. aussie-kiwi-- the rate. let's look at commodities. gold up one quarter of 1%. crude still below the $50 per barrel mark. iron ore coming up and coke and coal slipping slightly. let's get the first word news. secretary-general says output restrictions are rebalancing the oil markets, but further steps may be needed. the current curbs expire in march and he says a growing consensus is that extraordinary measures may be needed to ensure a stable price. brent crude treating -- trading down 5% on the year.

oil production in the gulf of mexico is coming back online after the latest storm to make landfall. hurricane nate cost widespread flooding and briefly holding more than 90% of gulf output. hundreds -- a cost an estimated $300 billion in damage the storm season. said he is considering a new deal on iran. three administration officials tell us the plan will be announced this week, aiming to present a united front between the white house and capitol hill. the president has called the accord the worst deal ever and an embarrassment to the united states. japan's political leaders held a debate before this months snap election. supports boj

policies and it is too early to discuss an exit strategy. repeated herdate manifesto to phase out nuclear power. the election is on october 22. separatist leaders in catalonia are promising to press ahead pro independence despite a spain march in barcelona. the -- what is happening in catalonia is a real. n -- >> we will always be at the negotiation table. we need another party to negotiate with. we will be there at the table, we have always been there. there is no reason for not being at the negotiation table,

whatever the situation is. i think always politics is the answer. that is what we are demanding. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 170 countries. -- than 120 countries. this is bloomberg. paul: banks, insurers and retailers will be in focus when chinese markets reopened later following the golden week holiday. tom mackenzie joins us from beijing. a couple of questions for you. did you attempt to go on holiday? secondly, what can we expect? we stayed put in beijing, we had some pretty clean air but we did not brave the crowds. the crowds were out. the traveling was enormous. the amount spent on retail. some of the numbers have come through, as well. retail spending up 10% from the previous year. retail will be an area of focus.

as you touched on at the top of the show, it will be an interesting start to the trading week in china, given what happened with offshore shares last week, given that the msci china index was up more than 4% even what we saw with the chinese banks, icbc posting the biggest when your gains. -- one-year gains. they are all saying strong take up -- tick up in shares. that was tied to the pboc's moves. this requirement cut. it won't kick in until 2018 but is seen by some analysts as injecting up to $150 billion with a liquidity into the system. that will be seen as supportive for bank profits. will be interesting to see how the banks listed here in the shanghai composite perform when the market opens later this morning. history, the, just

timing, october is a pretty good month to return historically. esther, the shanghai composite that the about 1.5% on the back of the golden week holiday and of even higher in 2015. those are some of the positive. there are some cautions, don't expect a great deal of volatility eating up to this political event on october 18 and also putting up the yuan has weakened so much -- somewhat. watch the insurance and banks, that is what analysts are telling us. we're expecting foreign-exchange reserves, also the pmi numbers as well as the survey. what can we expect? fx reserves a little more interesting this time given what we are seeing with the recent you on -- yuan weakness. they see as a crucial weapon in terms of controlling the market here. we are seeing it -- expecting it

to tick up to over one trillion u.s. dollars in the month of september. graduallyecting it to eke up. we have the fact that there are more inflows now, the market continues to open up. and just more steady growth. bloomberg intelligence is caution, we had this yuan weakness, the real estate curbs are starting to bite. that may pressure some to move money offshore even if it is more difficult. in terms of the shushing data, we'll have a forecast, but in august they came in some of both the contest it and services -- composite and services, above the current level. the data we got on september 30 came in much higher than forecast, highest level since around april 2012. those of the shushing numbers, 9:45.rvices are at

betty: we gets in the chinese index surged when chinese markets are closed. will we see some catch up in domestic markets to catch up with what happened overseas? composite hashai lagged in terms of offshore shares, chinese offshore shares, quite significantly. that is kind of touching on, we've had this historical precedents where in the last decade in october, the shanghai composite has averaged a take up of about 4.4%. we had after last year's holiday, it takes up after the golden week, it ticked up as well. there is now this divergence between what we are seeing in h shares. don't expect investors the

pilot at this stage given the political context, the respective placid markets. but they are having a factor in , targetedve ratio cut, not for all banks but a large number. in the fact that we've had this relative yuan weakness. the pboc has not shifted fundamentally there monetary policy stance. this is the way to funnel credit toward small and medium-sized into prices. betty: thank you. we are certainly awaiting those numbers in the market opening. we'll have much more on china later this hour when we find out why a hedge fund manager says beijing will have to recapitalize its banks. paul: plus, is the fed behind the curve? our next guest think so. he joins us, ahead. this is bloomberg. ♪

♪ i am paul allen in sydney. betty: and i am ready liu in new york. you are watching "bloomberg daybreak: australia." affected the september jobs report so much it is all but impossible to decipher what it really means for the economy. however, that is not expecting -- expected to stop the fed from raising interest rates in december. kathleen hays is joining us. was -- surge wages in wages was surprising. >> an interesting report. we have to hurricanes in the mix, you expect something dramatic. payrolls down $33,000. of forecast was for a gain 80,000, and that would be half of the previous month. this is even weaker than the forecast. you wonder what that means.

you cannot get to work, you cannot get time in. unemployment, 4.2%, a 16 year a 10 yearemployment, low. the jobless rate less affected by weather, that is what economists say. 2.1%.mp in wages up those take a look. the hurricane definitely helped. earnings, uprs -- year-over-year. utilities workers, think about all of the damage from the hurricanes month they worked a lot of overtime. that is a higher rate. also apparently, a lot of low-wage workers, waiters, they depend on tips, they could not get to work. but the july and august numbers were revised higher. we get a mixed bag. what will the fed do? how can they read all of this clouded data?

the right-hand man to janet yellen said it is a temporary drop, he does not seem like he is slowing down. nor did boston, he urged gradual rate hikes. let's jump into the bloomberg. let's look at world interest-rate projections. to the far left hand side, you consumer might closer is, the december 13 meeting is a must and 80% chance that the fed will hike the rate one more time. september 8, it was just over point percent, the markets are definitely getting convinced the fed will move ahead. there is a lot of back-and-forth on the report, the people who want to see strength in seeing good signs and the economy can find them. it will not convinced by the report are finding the holes in it. we have a lot of certainty it seems appearing around the next move from the fed, but not

so much in the race for the next fed chair. what is the latest? mosteen: one of the interesting stories from our bloomberg news team is the white house is looking for a fed chief who will be willing to revisit all of those regulations that were passed during the crisis, during the recession to make banks safer, make investors a safer, make consumers safer. but also on friday, the treasury department put out a 220 page document looking at plans for easing some of the rules on stocks, bonds and derivatives. it seems a lot of it is not so much like making eggs riskier or -- making banks riskier, i think a lot of people on wall street will support. they say the white house is clear, they want a fed chair with policy experienced and strong leadership skills. let's listen to what the bond king said about who he wants to see as the next fed chair.

>> i knew him for three years, he is a brilliant man, he has ideas that are little bit different other central bankers. he looks at the market a little bit different from a structural standpoint as opposed to simply model typeal taylor of role. he is young, but he would be my choice. he is not going to be the choice. getting a lot of fans, particularly among bond king's. if you will remember, there was also a bond fund manager last week said he would like to see kashkari chosen as fed chair. two big players have come out in favor of him. betty: interesting. his name is not even on the short list. kathleen, thank you so much. dig deeper into the jobs andrt with mitsubishi,

chief financial economist, he had one of the lowest forecast for the september jobs report. he forecast zero jobs would be added. in that case, chris, you did not forecast a decline but you were quite bearish on the report. chris: just for the payroll jobs part of it. inkind of did this back september 2005, obviously a long time ago. that hurricane katrina, it is interesting how hurricane katrina, we lost jobs of the 35,000 in september 2005, and on friday they said after hurricane harvey, we lost 33,000, go figure. sometimes you wonder about how they come up with these numbers. it is a little strange, i have to admit. betty: yes. chris: the interesting thing to

me is that the strength of this yourt just really hits right in the face. rate, muchployment lower than the full employment level of the federal open market committee. this is the time when you want to raise interest rates at least above inflation. counting cpi inflation. betty: let me interrupt you. you say labor market is tight as a drum. you say janet yellen looks like a genius here. chris: i go back and forth on that. betty: [laughter] but on this report, you say yes, right? chris: that is the model, unemployment falls, the labor market tightens up. it is hard to go out and hire people, there is not a lot of skilled workers we need out there. this is the time when companies employees and job applicants a little more money

to entice them to come aboard their companies. guess i am a little bit surprised at how strong the labor market is. loss, it seems like interest rates should come up to normal because the economy is normal. betty: what is interesting, i want to pull up a chart here for our viewers, 6076. i'm sure you're familiar with this chart. it shows you how tight arrange we have been in the on markets, the treasury markets, we are at the tightest range with yields since the 1960's. it seems like -- chris: those were good years. betty: [laughter] these days it feels like it. if we are on the brink of an economy that is heating up, maybe overheating. what is going on with these yields? white is the market not behaving like it -- why is the market not

behaving like it? chris: there are number of people concerned about inflation being the 2% target for several years now. marketel like -- and the picks up on these more dovish members of the fed thinking maybe rates will not go higher because the fed, inflation has not heated up. maybe it is not quite the same old way where a tight labor market means more inflation. of bettingis sort against it, but at the market is a little distorted something because people had low rates for so long that they are issuing corporate bonds, swapping the proceeds, they don't want to pay fixed rates, they want to pay the lower floating-rate, and the fact that so many people want to do that, it drives down the 10 year yields and keep some low. you are right, it is shocking to

me last week that the dow industrials went up like 400 points until we got to friday. and yet the bond range was like three basis points. markets kind of slow and fortress in its day-to-day movements. paul: just sticking with you, your thoughts on bonds. we heard from bill gross earlier, from an interview on friday. he was questioning whether the long-term bull run in bonds is over. would you agree that there is a risk there? 3%is: i've been calling for ten-year treasury yields four years now.- for i would like the bond rally to be over. it seems like inflation will pick up a little. not forget, inflation moves with and a lot of times the

dirty little secret about inflation picking up isn't the strength of the labor market, it is simply outside factors like energy. crude oil prices go up, cows prices go up at the pump, -- gas prices go up at the pump, the american public thinks there is inflation out there and companies finally enough start to pass through higher energy costs in their goods. crude oil prices could be off the lows, but it could cause inflation to pick up within the next 12-18 months. it is a long way to wait. paul: all right. thank you very much. rupkey joining us. we have some big guests coming up. we have more analysis on the fed.

head of that, we have the woodside petroleum the ceo at 6:30 in sydney. this is bloomberg. ♪

♪ let's get a quick check of the business flash headlines. admittedtill has falsified documents on the strength of aluminum. japan's third-largest still maker says the documents were delivered to many companies but declined to offer names. this came to light during inspections last year. acc has reportedly picked its head of banking to be the new ceo, and has asked the bank of england to make the appointment. flint'sd approved

promotion suite. thecurrent ceo has been in post seven years. he will retire in 27 -- 2018. the kiwi dollar has dropped.

paul: it is 9:30 a.m. in sydney, where markets open in 30 minutes. futures not greatly changed, off 6.7 moment. i am paul allen in sydney. betty: and i am betty liu in new york. "bloomberg daybreak: australiayou are watching"bloomberg daybreak: watching." -- you are "bloomberg daybreak: australia." has giventheresa may indication she may shake up our cabinets. progressive talks could be in jeopardy. is not want toe shirk the challenge and wants the best people around here. that has led some to question the future of foreign secretary

born johnson, who is seen as being out of step with government policy. the u.s. suspended visa services for turkish tourists. washington says recent events have forced it to reassess the brca 1 governments commitment to governments commitment. alleged involvement in leicester's failed military coup. the financial times says eu regulators have raided offices of banking authorities in poland and the netherlands as part of a trust crackdown. it involves an inquiry into lenders that allegedly blocked rivals from gaining legitimate access to information. it says trade bodies may have engaged in these practices. is thee bank's ceo

largest investor. he will meet a chinese conglomerate, which has 89.9% stake. -- a 9.9% stake. we are told attempt to arrange talks have failed and cryan says he does not want to meet hna. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ paul: thanks very much. it's get a quick update on the markets must starting in news newland -- news england -- zealand. a little offar against the u.s. dollar, down one third of 1%. this as we wait of the likely formation of a government deadline on thursday. a littlelia, looking weak come off six points at the moment. the aussie strengthening against the greenback after hitting a

three month low over the weekend. the aussie also strengthening against the kiwi dollar. bass isnd manager kyle as gloomy as ever on china, telling bloomberg it is inevitable beijing will have to recapitalize its banks to the tune of around $3.5 trillion. he says china's official economic figures cannot be believed. >> collapse is a strong word. will have a is we loss cycle that will cause a recapitalization for their banks. i think when people think about collapse, you think about lehman. you think about where do we put our money, the world is coming to an end. i don't think the world will come to an end, i think the chinese economy will recapitalize the banks. i think they will be forced to. during the asian financial crisis, china recapped its banking system. it never had a sovereign

downgrade, it is not had one in 30 years. during the last crisis, there was not a sovereign downgrade. we had a couple of them recently. during the last crisis, a cost them 30% of their gdp to recap their banks. that's how much they had to invest in their banks to recap them. i think that is about what it will cost this time. almost $12ese gp is trillion. 30% of chinese gdp, which is almost 12 trying dollars. they're going to print that much just to stabilize. >> they have $40 trillion of assets, only $2 trillion in negative. you only have to lose 5% of assets to wipe out your entire system. is that going to happen? of course the -- of course. not forming loans were a third of their system. orders of magnitude, will it

happen? of course the >> you feel a certain about this >> today. you feel certain about this today. >> yes, ask anyone who studied credit systems off the record. an them if china will have npl crisis. , what does that mean for the rest of the world? china will recap the banks,/their rrr, which they did last week. rrr, they will do it, it is not the end of the world. none of our banks are collected to theirs. it is not the global collapse. >> it will not metastasize globally. >> no. it will just be a problem in china that will also be problematic for asia for a short period of time. >> why aren't more people coming around to this point of view? the argument you make, it is a

strong one, very persuasive. but at the same time, more and more people whom i talked to seemed beginning confidence in china, not losing confidence. what thek you believe government says. you want to believe. the majority of everyone in the world is long everything. whether you are a long-term investor, short-term investor, the avant that is long. massively long biased. massively long in investments. if you have a pension fund or endowment and money is allocated to china, this is the last thing you want to hear. there is a psychological bias. this is why very few people get crises right. if all you're doing is waiting for a crisis your whole life, you are swimming upstream and it gets tiring. , it doesn'this case

behoove anyone who is long on china to not believe. look at the government's most recent proclamation this year leaving. provenance of they admitted that from 2011 through 2014, the better part of five or six years, the overstated gdp by 20%. not 2%, 20%. if texas or california overstated their contribution to u.s. gdp for five years by 20%, what would the next thing, in the logic of your mind or economic logic, what would they have to do next? there would have to restate the national gdp accounts. china just adjusted the gdp deflated by 1%, they did not change the national number. china make things up because it suits them. do you think as a western

investor that when things go wrong, how well do you think you will do in the chinese courts? he will not do very well. some kyle bass with compelling thoughts on china. let's get more on china and what we should be watching as the trading day gets underway in asia. our global markets editor is here. chinese markets reopening after we got holiday. what can we expect? rrr cut from the back end of the week before last, september 29, that is what we are looking at. mainland chinese markets are being closed for golden week spirit -- golden week. some of the banks have done well. we likely will see that come through when trading gets underway in shanghai this morning. i think it is really to do with whether you believe the rrr cut is effective of a more positive credit environment for the banks

, in which case we could see a further higher. kyle, who points from is obviously a bear on china, it is difficult to keep of the argument when a lot of people have been throwing in the towel. we have seen a lot of bears officially capitulate on china this year. some of these chinese assets continue to do very well. i think we should see a pretty green session for chinese equities against a relatively damp mood for risk-appetite more broadly. china,moving outside of particularly new zealand, there is uncertainty about the election that is weighing on the kiwi dollar, right? yes, and we are seeing the kiwi off about a few tense -- tenths because of that.

a continues to be a battle over whether the two leading parties can get together the necessary coalition to form the government. as the uncertainty drags on from one week to the next, it just means people are essentially repricing down a little bit, and the outlook there for new zealand. i think on a relative basis, it is still incredibly attractive place to be, it has high-yielding government bonds which are still attractive to people. i think it is for an intern -- i think it is for international investors, uncertainty. there are a lot of questions about economic growth and policy over the next 6-12 months, they are willing to sit this out into we have more clarity. betty: thank you so much. markets editor. president trump expected to make an announcement on the iran nuclear deal with this week. he said -- he is said to be

weighing a strategy to keep the accord and tax for now, but giving congress oversight. ross, he is expected to make this speech on thursday, right? that is the guidance that was coming out late last week. certainly he has until october 15 to make his recommendation of congress. it could go beyond thursday. that is what we think for now. suggesting, how is the third wave going to work? ros: you could even call it the tom cotton plan. , a senator from arkansas foreign-policy hawk, he has been influential in pushing the administration on this. he had a couple of meetings at the white house recently and basically the way it would work the kind ofld

certified a congress that iran is sticking with the spirit of the 2015 deal, and congress would be able to possibly come up with some solutions of its aboutven talking reinstating sanctions that have been lifted or taking other measures. within be able to take that two other allies that signed on to the nuclear deal to try to push them to make changes. kind of interesting, the u.k. embassy in the u.s. came out with a little publicity video today talking about how well the nuclear agreement has been working. we don't know really if the u.k., germany and the other partners in the deal would want to go along with congress and trump. paul: that is the curious thing about all of this. everyone else seems quite happy, russia, iran seems happy. youu.k. and germany as

mentioned. how are the other international players reacting to this? ros: i think you can expect to hear may be some back channel communication between he other partners -- the other partners and the trump and ministration. i don't know if anything happening specifically, but you can probably bet that if they are saying things publicly, they are saying things privately as well. had within the u.s., senator dianne feinstein came out today and endorsed the iea and found iran is in compliance. the interesting thing she said is you could really great crisis with north korea if the iran nuclear deal goes south. now is really getting serious. betty: you would think that would occupy the president. litead, his twitter page is up over a feud with senator

corker. he really teed off on the senator today. corker thats like tim to endorse him for reelection. himorker bed him to endorse for relation. corker responded by saying it is a shame that the white house has become an adult day care center. liked people have corker's three. i don't know where we are we have leaders in our country tweeting barks like this -- barbs like this. how damaging is this to the president and congress? republicans hold 52 seats in the senate, they need every vote they can get to pass legislation or move measures through the chamber. making an enemy of bob corker does not seem like the grazed idea. he has typically voted with the

president and is a steady republican lawmaker. it is hard to imagine why trump teed off on him like that. corker did say the other day, or the incident that it triggered trumps twitter storm, senator corker kind of saying that rex tillerson, john kelly, the white house chief of staff and other members of the administration are kind of keeping the country from being in chaos. having read that, i think trump was not happy. ,ll in all, it is a distraction it is a spending of political capital which in theory is not limitless. betty: thank you so much. ros with much to watch. up next, gold is getting its groove back as renewed worries about north korea's safe haven. details ahead.

this is bloomberg. ♪

♪ paul: i am paul allen in sydney. betty: i am betty lou in new york. you are watching "bloomberg daybreak: australia." new economic numbers, including retail sales. investors will be focusing on the meeting in washington. we will hear more. we had the jobs report with the impact of hurricane, now we will see it in retail sales. >> this an expectation we will see again in september sales because the damage caused people to buy things before and after the hurricanes. there is expected to be a big surge in car sales. in general, we are expecting an anomaly of sorts. it will be interesting to see how we get this. in terms of some of the other

aspects, if we look at office depot, if reported last week it had a big hit. we have a chart, if we could look at office depot. you can see where they announced that it will take about an a percent hit of sales. they are located in florida, at the eye of the storm. they're giving us a hint of what we can see. they also slashed their yearly target. they bounceback after -- bounceback after some news. the bloomberg, 3186, let's talk about the market. unprecedented gains of late. if you look over here. in recent weeks. we have been talking about the longest monthly winning streak on record. there is a bit of a question about asset valuation. that's take a listen to martin feldstein, and economist at harvard come in his take on how the economy is doing. martin: it is in good shape but it is spread out -- it is

fragile. asset prices of all sorts of gotten way out of line with historic experience. is way out of line me there gains once again on friday, although the picture was next. nasdaq with some gains. the question is, will we be back with the bulls running as we open a monday morning? ,aul: let's talk about gold friday's gains not enough to reverse a fourth week ulee -- weekly loss. interesting is that one of the big gold analysts out there says saber rattling is very good for gold bulls, it tends to push prices higher. we go on to the bloomberg, 7558. there is a thing called the golden moment, the return of negative correlation of gold treasury yields, confirming the

fed rate hike. we have to forces working here. one is the fed rate hike news is putting pressure on gold, and that is why the recent talk about missile tests from korea pushed us a bit higher. in terms of bigger picture on gold, we talked about it has been a couple of weeks lower, friday did reduce the weekly loss. there is the push-pull in the etf between the fed and korea and that is having an impact. if we look at gold etf, there have been an accident. etf is a lagging indicator. people have been pulling out of the gold trust, a lot of people believe the trend will be reversed as we go into a season of long-term uncertainty. keenan, they could bring much. from markets to earnings season, which is getting into gear. have what you need to know. >> thanks very much.

looking at the third-quarter earnings, expectations here, everything looks pretty rosy. first of all, 3639. take a look at what is happening in the s&p and in terms of the expectations here. the blue line is the forward 12 month earnings ratio. the white line is the trailing 12 month eps. gap, towardt optimism ever since way back here. that is before 2009. there is some optimism pushing this higher. with that said, not as high as it was earlier because of the hit from the hurricanes we saw in august and september. earnings growth has been taken down to about half. it was a seasonal kind of thing, that is expected to be short-lived. by the second quarter of next year, it could return with a

vengeance, up around 11%. that is your first terminal chart. the second, let's take it what is happening in terms of global earnings. this is 7737. a similar story, look at the green line on the right side of the screen. 2017, the expectation have been rising for most of the year. that is in contrast with the last five years or so. global context based on growth as well as inflation. the world bank is forecasting global growth at 2.9% from 2.7%. finally, i want to look ahead at what is happening in terms of this week for financial firms. lines arese white seeing the upgrades are outweighing the downgrades. later this week, we have before on the docket, j.p. morgan, citibank, inc. of america and wells fargo. the earnings season just getting underway. paul: thanks for a much for that. more ahead on "bloomberg

daybreak: australia." this is bloomberg. ♪

♪ paul: a fortunate run of stockpicking has spurred a bounce in shares in kurt nielsen's asset management, but for many it is the end of platinum. our asian equities reporter has the story. is it too early to call it a turnaround? matthew: we've not seen the funds come back in. we have seen some, but investors in the market are waiting for the september release of the funds under management, we are expecting that eminently. we were thinking friday, hopefully today. i just had a quick check before coming on, we've not seen it yet. the shares ticking up at around six dollars over september. the stock may be aligning for and platinum

management, but not there quite yet. you can't quite call it a turnaround. is it all about the money that gets back in? all about the benjamin, so to speak? matthew: [laughter] definitely about the benjamin you can't quite call it a turnaround. is it all about the money that .ets backspirit -- benjamins we saw average funds under management drop about my .6%. was -- my .6%. it was because that's in china were not paying off. stocks in the u.s. were driving global equities higher. but that has changed a little bit this year. they have started to perform in the last three months. betty: thank you so much on that. matt burgess, our asian equities reported. that is it from "daybreak: australia." we will have all of the action in "daybreak asia." will the chinese markets follow with the rally this all overseas after the golden week break?

lots to watch. this is bloomberg. ♪ is this a phone?

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♪ kong, we.m. in hong are live at bloomberg's asian headquarters. welcome to "daybreak: asia." chinese markets return from the golden week break, traders watching for reaction, the search in age shares in hong kong. opec says output curbs are rebounding the market, but extraordinary steps may still be needed. 7:00: it is just after p.m. in new york. a forecast from the fed distorting payroll numbers. rates are still expected to rise in december. and japan's