haidi: welcome to daybreak: asia, i am haidi stroud-watts in sydney. sophie: we are counting down to asia's market open. shery: our top story this hour, asian stocks such a high after

wall street losing streak, u.s. inflation and eminent fed tapering. jp morgan caps off u.s. bank earnings with record dealmaking, but shares fall on loan growth. plus how short on the hong kong dollar has snared investors for what the sec says is an illicit stock offering. haidi: let's get you to the open. sophie: a gain of 10% of the open, vhb said to have a two day decline, the topic -- top pick, compelling metrics like cash generation and we will keep an eye on whitehaven as supply chain snarls have hit them but coal prices are putting them on course for a cash would follow. the kiwi dollar is outpacing the aussie dollar. the market has priced out of china risk and we are seeing aussie bones gain ground with the 10-year down by nearly six

basis points. from the mainland, we are waiting on chinese inflation data which follows week credit numbers from the mainland which may underpin fiscal and monetary support from authorities to stabilize growth debit -- dampened by the energy surge. oil prices took a hit overnight and gaining a little ground, staying above the $80 a barrel mark and as we count down to the japan open, or gets have more clarity on the policy priority, which includes boosting domestic semiconductor capacity. said to subsidize in a factory in japan, but by sony and tsm, earning headlines, earnings and asia along with fast retailing in japan. nikkei futures higher ahead of the open in tokyo while the yen is firmer after we saw the dollar slide on the cpi report but the yen has headaches for

them at dbs, a risk of the new range for the japanese currency at 115 to 120. shery: that is very weak, i've been watching the yen closely because the weakness against the u.s. dollar, not surprising considering we get the signal of fed tapering while the bank of japan is not doing anything. they are maintaining their policy and we heard from the fed minutes from last month, saying tapering could come as soon as next month and who would blame them? look at u.s. cpi numbers outpacing the forecasts, the largest annual gain since 2008. haidi: when it comes to the chinese inflation, it seems to be the same story, adding cpi numbers today. this is the comparison to the rest of the world and consumer price pressures, it's going to be an extension we will be seeing for much of this year. muted cpi levels due to constraints rising from the current virus outbreak and

limitations that are still in place. as well as commodity prices continuing to modify, a 26 year high. the global gauge at an all-time high. as a change the picture? rubble we not. we know at this point they are looking more to prioritize growth stability versus price stability. shery: that is right. when it comes to all things china including the crackdown in different sectors, not to mention we have not talked about evergrande for a while but we are watching on that front as well. haidi: of course. when it comes to global growth concerns, we have an interview in the next hour with the filipino finance secretary close to me goes about the plan to -- carlos about the plan to strengthen the market outlook. shery: inflation a concern rather world, cpi notching up

again last month as pandemic price change -- trends continue. kathleen hays joins us with a breakdown of the inflation report and the fed minutes. kathleen: inflation is one of the big reasons the federal reserve feels it has to get off the diamonds are tapering bond purchases and gives needs to hike rates. with look at numbers, cpi was up 0.4% on the month. that was higher than the forecast and the headline number is up to 5.4 from 5.3, 10th of a percent higher. attend higher, attend lower. the core cpi was up 0.2, taking out food and energy, the headline averse for the core. cpi up 4% and change of the year. there is no doubt this is on the fed's radar screen, we saw it in the minutes of their last

meeting. 21 and 22 of september, they agreed as long as the economy continues to recover as it has been, at the november 3 meeting they're going to say we are going to start the taper this month in november no later than mid december. again, the tapering would finish by july of next year. if all of those dots we saw from the june meeting that want to have the first rate hike in 2022 at the rate -- get their way, the door would be open to make that move. the fed expressed concern about the supply-side talks, they do not expect to keep inflation so high. they still think it is temporary but it is on their radar and making them nervous. haidi: the trend is likely to continue for both consumer and producer price inflation today. kathleen: and it is a good trend. usually it is not. when you see as i can show you

from this chart, producer prices were up 9.5% year-over-year last month. now they are expected to be up 10.5% but you still have steel rebar prices in the last year, oil and gas prices up so much, those prices are not going to continue to rise in way. 0.8%, less than 1%, most things are to present around the world and expected to say at that level -- 2% around the world and expected to that level. it struck what the u.s. cpi versus the chinese ppi because they seem to go together. i would urge everybody to think is this causation or correlation? they go up together, but perhaps it's because there are the same forces driving them together, not necessarily china's producer prices are feeding consumer prices. on the other hand, producer prices are the prices that go into production, and if you're prices go up when you're trying to produce something in china,

will try to raise that price for the u.s. consumer. maybe there is more causation than i might think, but it is an interesting chart watch. in one thing we can all agree on, inflation around the world, emerging markets, developed countries, it does not matter, they are being closely watched. they are driving central-bank policies so both of these numbers driving high. haidi: going into the holiday season, a lot of paraphernalia made in china. let's go to bank earnings, j.p. morgan chase dealmakers posting their best quarter because of the recent activity. shares fell and there is concern about mutual loan growth, su keenan joins us. if you are a dealmaker you might be concerned he did not get that big action to find some good numbers. su: one growth has been in focus particularly because of what it

means for the recovery of the economy, and while j.p. morgan chase did report 6% total loan growth largely from its investing banking division, consumer loans were down and commercial loans down 5%. lending conditions are improving but it will take time. that overshadowed the record quarter for dealmaking given what is on track to be record year for mergers and aquisitions. the advisory fees and investment banking helped push the firm's net income to $11.7 billion, j.p. morgan's ceo jamie dimon touted their strong results despite the effect of the delta variant. there was talk about covid recovery and he did talk about how they had done well despite supply chain disruptions. what weighed on the stock in the latest session was the fact that

you had concern about consumer and commercial loans going forward. j.p. morgan chase again has done well your today to, and jamie dimon pointed out the results were padded by a $2.1 billion reserve relief. the bank did lower its outlook for charge drops in the credit card business from about 2%, down from a previous forecast of 2.5%. i would be losses due to credit cards so that is also a positive indicator. but many expected j.p. morgan would set the global bar of investment banking and dealmaking. it has done so. shery: and is just the start. we have other banks reporting earnings this week including city, wells fargo, morgan stanley. su: we have four in the u.s. thursday session and advisory fees expected to be at or near records for all of the bags, j.p. morgan loan loss -- lending

will be the focus for thanks. in terms of loan growth, they do expect citigroup and j.p. morgan to do better than other banks and there are analysts who have talked about what that is going to mean. citigroup's card balance will be in focus, banks are looking at bank of america to kick off the slew of earnings, the revenue diversification has been cited as serving the company. wells fargo shares up 51 percent year to date, the best-performing bank. regulatory issues are expected to be an issue and morgan stanley will be bringing up the rear in terms of the reporting. institutional revenue expected to put them in good stead, particularly as trading revenues skewed toward equities and the

m&a and ipo activity has been strong. haidi: su keenan with the latest on the banking earnings. just getting started. let's look at one of them movers in the early part of the session, seeing them gain the most in about eight months, up by about 8%. and off those session highs of the most 12%. agreeing to pay over $1.5 billion for a group for a 45% stake in the copper project in chile. this is part of their clean energy transition pledge, boosting exposure to copper that is in high demand for its role in the clean energy story. they are actively reshaping their folio -- portfolio for a low carbon world and that it does -- as well as increasing their presence.

we talked about earlier this month that it was considering selling off its interest. let's get you to vonnie quinn with the first word headlines. vonnie: big ben against the home, dollar has sizzled, some high-profile names. ex trump advisor steve bennett among them. the commission alleges he and others in cash to a starter up through an illegal offering. so this was controlled through a hedge fund. $30 million of that fund was blocked. the world's biggest economies having a global tax overhaul. when to 36 governments were over minimum rates for corporations. the u.s. said they were is committed tory. the stage is set for -- discriminatory. the stage is set for g20 leaders to discuss. opec has estimates for global

oil consumption, growth is down to nearly 6 million barrels a day. the natural gas prices are expected to boost petroleum in some areas such as power generation, but that could curb demand in other fields such as divining. that's refining. -- refining. people will be kept warm this winter and long-term climate goals will be met. they say the coal supply is secure in their speeding up the construction of wind and solar projects. the government out of mark so -- moscow says -- global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: supply chain disruptions

feeding the debate and threatening recovery. matt bryson joins us to discuss. but first, emily tells us what persistent inflation and the fed taper means for emerging markets. this is bloomberg. ♪

>> i lived through the stagflation of the 70's and there are a lot of differences. do i see persistence in inflation? yes. i believe it is more than transitory. >> there are these transitory forces and as long as we see inflation x rotations remaining anchored and -- we expect to see a return to normalcy by next year. >> the prices, oil, gas, coal

prices are a serious challenge for the global economic recovery to higher inflation. >> the biggest thing to be sure about is stagflation. we are seeing inflation or pressures. >> my baseline case is not for stagflation, over a immediate horizon. haidi: big names about inflation and the prospects of rising pressures, our next guest is seeing it is difficult but the problems we are seeing with supply chains are not going away anytime soon. spring and emily alejos, director of cartica management. this is making you more bullish. is that an energy play? emily: we do like russia a lot which is very leveraged to the oil price.

they have managed well during the pandemic and they have high-quality attractive we valued companies but we are not investing directly in the energy space, we don't have any energy exposure in our report for leo. haidi: are you as concerned about what sort of mix between the possibility of stagflation, the fed continuing to go down its tightening path and how that plays out? emily: the fear of stagflation and rising inflation is going to be an interest issue over the next two months and going into 20 put to -- 2022. the good news is we have a long-term horizon. our focus is on making companies better. --

shery: given inflationary pressures, we have blamed the motor presses but -- whether it is chile issues, brazil because of other elections coming up in 2022, they have -- they weaken their currencies like the rally on the chilean peso. how do you counter this and play the emerging markets when those political voices will be a key issue? emily: politics and elections is nothing new for emerging-market investors. that is a cycle we know quite well and we do expect volatility around populist rhetoric and increased fiscal spending. that being said, the central

banks and especially in light america of you pointed out -- as you pointed out, they have been tightening and prudent in terms of trying to combat inflationary pressures of they are seeing locally and that is supporting the currency, which is provided some stability in terms of a macroeconomic backdrop for the companies we invested. -- invest in. shery: are you investing in companies -- countries like chile, sale, because we keep seeing surprises, the chilean peso is the most performing among countries in the last few months. emily: we are investing in brazil and mexico. of brazil, we have seen interest rates go up order 25 basis points. we have seen scary headline inflation numbers, high signal digits. we would expect inflation interest rates to go up toward the year end, which is supporting currency.

the selloff has been normal in the context of the volatility we have seen in brazil, only down about 5%, which sounds like a lot but compared to last year's over 20% appreciation, it is not about. shery: how do latin american emerging markets compared to say asian economies in developing nations there? at the start of the pandemic, we saw asia was region -- raining in the pandemic much better than other nations, but now because of different reopening strategies, that seems to be training -- changing. emily: north asia was protected last year because they had lockdowns and it was very vigilant and cautious activity. so that happened last year and this year, we are seeing a mixed vaccine rollout and there has been a continued pressure coming from covered. the fear of lockdowns and rising

infection. latin america had a very bad experience this year and is getting better at it has no fear of vaccines and are rolling them out heavily. haidi: in china, or using concerns over evergrande and the regular tory crackdown as contagious -- regulatory crackdown as contagious? emily: you see volatility increasing what some think that happens in china. it is more headline news and it causes significant price action for a day or two and then things seem to settle down. our focus is on valuation and we think that the stocks we are investing in, specifically the technology space, is very attractive from a bottom up perspective. shery: it was great having your

insights, senior managing director at cartica management. get a round of today's stories in today's edition of daybreak, also available on mobile in the bloomberg anywhere app. you can customize settings so you only get news on the industries and assets that you care about. this is bloomberg. ♪

shery: captain down to the start of trading in tokyo and seoul. pledging that all models introduced the country will be electric from 2030. there also facing out combustion engine cars globally by 2040. that was hit hard by the ongoing semiconductor shortage.

the prime minister is saying he will invest in reviving domestic chipmaking speaking in an interview with tv tokyo. we also continue to watch japanese yen, zeroing in on the currency to position for fed tapering. almost 4% against the dollar -- we can almost 4% against the past weeks. rising nearly 27% on the year, export prices also jumping more than 20%. meanwhile, the bank of korea will report on international financial and fx market movement in a couple of hours time and before the hearing is scheduled for j widely on -- j -- jay y lee. haidi: let's get the business flash, second quarter profits of $740 million, an increase from the or before. also raising the out -- changing

the outlook for the year. spending continues to grow as the pandemic forces migration online. cathy wood joining wall street players hoping -- the bitcoin future strategy plans to invest in contract that

>> it>> is my safe but the solution, i think it is prices. oil, gas, oil prices are a serious challenge for the global economic recovery through higher inflation. shery: sharing his views on

energy prices, look at oil. wti rebounding from the new york session, we had losses in new york given that we heard from opec that they revised down their global oil consumption target for this year. the white house has been speaking with producers about helping to bring down rising fuel costs and of the wave on prices. aluminum has wavered and the high, and energy intensive metal as we continue to see energy shortages globally and in china. we are seeing winning demand and new steel -- in new steel curve in china. our cultural outlook, corn hitting a one-month low. despite an ongoing drought, watch out for thermal coal in china because of the top planning agencies are seeing china has been secured despite the fact that they have to meet

climate targets. let's turn to sophie, watching miners. sophie: a three-day drop, check out these shares rising 5% after agreeing to buy a 45% stake in a copper mine in chile. net wealth getting more than 10% after raising its 22 year forecast, looking to the downcast, red bubble the big decliner, -- with white under pressure, it did see first quarter coal sales take a hit but it is on course to be in a net cash -- and tokyo opened, nikkei futures open higher. stocks in tokyo head into a seasonally strong period and our colleagues at the functions for

the market team are mapping it out using the function on the terminal which shows how the final quarter tends to deliver the best returns for the past 10 years especially in the month of november particularly for the topics. that is outperforming the nikkei 225. they have narrowed between -- from the hyatt we saw in the timber, the enthusiasm for cyclicals, the nikkei set for the worst year against the topics for -- since 1999. we will get earnings from that company earlier today. haidi: let's get to vonnie quinn with the first word headlines. vonnie: the treasury yields flattened after an unexpected rise in u.s. consumer prices reinforces the view that the fed will start removing monetary stimulus. cpi jumped 0.4% and 5% of the year, the biggest gain since 2008. minutes from the fed september

meeting so they could start to bring bond prices as soon as next my. a poll has found the pandemic wiped out the entire savings of almost 20% of u.s. households. a survey of more than 3600 people nationwide suggest black and latino families were hit hardest. a poll sponsor, saying almost two thirds of households earning less than $50,000 a year that they had trouble affording red, medical care and food. -- rent, medical care and food. climate change lending to the annual meeting, the aim to encourage governments move their economy for the greener future. it will be funded by rich nations reallocating reserve assets. it would be targeted at low and vulnerable middle income countries. they want the new cecile -- facility to be finalized by year-end. it has been revealed that netflix employees raise concerns about a dave chapelle comedy

special before its release. the jokes about transgender issues were potential damaging and the company has backlash with a walkout planned for october 20. netflix told bloomberg it supports artistic expression and encourages employees to disagree openly. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: hedge fund manager -- haidi: a hedge manager -- details on the story from jesse westbrook, reporting from washington. what do we know? >> it is a wild story. the sec alleges that in 2020, spring of 2020 in the u.s. when the pandemic was raging and

separately in asia, china was moving to be more aggressive with hong kong. this company was trying to raise money to raise money for a media compnay a-- company that would be against china. they raised hundreds of millions of dollars and $100 million of that money, people thought they were investing in some the good would be a dissident voice to china and it ended up in a hedge fund. the sec reported they were able to determine it was kyle bass' capital, something his a firm oversaw

95% of the $30 million they invested. it was a substantial loss for the firm. shery: what was the nature of his bet on the hong kong dollar? >> he has been on and off shorting the hong kong dollar for some time. there is indication he took it off, put it back in 2019, and in the same period, spring 2020, he doubled down on that but. he started a new strategy, the bet was making a 200 leveraged that that the hong kong dollar's peg to the u.s. dollar would collapse. it is not an outrageous thought at the time. there was a lot of speculation which you may remember in the trump administration that the trump administration might try to punish china for moving more

aggressively with hong kong in one way that they were thought to be comp -- contemplate punishing china, was to take action that will try to remove the peg. it did not come to pass, biden when the election, investors determined that the peg was here to stay and it is, and the bet has been a big loser for kyle bass. haidi: what are the major reasons the waiter did not pan out? -- wager did not pan out? >> it is sort of that the change in u.s. policy, and u.s. in ministrations, i will say that biden's administration has not taken an easier time with china, they have been equally aggressive, but the thought that the u.s. presidential meditation might take action try to remove that decades-old peg between the hong kong dollar and the u.s.

dollar, for now that seems off the table and that is why this bet has moved so massively. shery: joining us from washington dc. -- washington, d.c.. the imus board is sticking by the chief after an investigation into allegations that she rigged data in her prior role at the world bank. an economics professor spoke to us about the decision. >> there is always going to be a political element. the report that was the subject of all of this controversy was the doing business report, and that was a report that was always problematic. in fact, just a decade ago, i testified to congress about why that was about report and not to

be scrapped. -- ought to be scrapped. they said that doing business, doing well on that meant -- what that meant. my view was progressive taxation, finance and info structure, that makes for this economy. you are actually right, if you are going to have data, make sure that by its nature, it is not a political debate. tom: do you believe that whoever follows this on the world bank, will they be tinged by this? does she have too much baggage to do her dog desk job -- job? >> absolutely not. if you look closely at what she

did, she stood up for data integrity, she said were not going to monkey with the methodology, she instructed her staff to make sure the data is right, do what i would have done if i were in a position and it turned out that when they looked at the data, there were some rounding errors, they ingested things and the difference, the whole controversy is about whether china was an 83rd or 75th -- and that difference is not sick to sickly -- statistically significant. it is basically a tie. we should have explained a lack of statistical significance to this difference between 75 and 83rd. >> there is a broader story of increasing politicization of central bankers in general, some

of the financial authorities around the world. i speak about this with the federal reserve stepping down as vice chair supervision. how much does this week and the role of the legs of the federal reserve and they are more pivotal than ever to markets? >> you cannot remove our regulatory authorities from the clinical contexts. we have a crisis in 2008, some people have forgotten that. one side of that political spectrum says we ought to deregulate. the other says 2008 actually occurred. it occurred because we did not have adequate regulation and we need to maintain a strong regulatory framework. that has become political. but it is also the essence of rec -- essence of economics and the same goes for climate change. i'm at risk is a financial risk.

countries around the world have recognized it, but in the united states we seem not to have fully taken this on board and i'm concerned. the chairman of the federal reserve has not taken it on board through real risks associate with china -- climate change to our banking system. haidi: joseph stilgitz speaking with tom keane. coming up, the chip sector taking the pain. if there's any relief in sight. this is bloomberg. ♪

>> hopefully a year from now there will be no supply chain problems from the pandemic, and i think it is good to have good, healthy growth which we have. it will be good to have on metaphor percent, it's good that jobs are open, i think it's good that wages have grown up and there is too much focus on -- none of the changes how we the business. -- run the business. >> the word is resilience, we have to build a more resilient supply chain. that was the goal he set out for our supply chain task force. pres. biden: this is the first

step to moving our entire logistical supply chain nationwide to a 24/7 system. shery: given this focus on increasing price pressure, it's not surprising we continue to see supply chain disruptions chatter when it comes to this earnings season, we are very early on in the season. already, the phrase supply chain has been used for a thousand times in investor calls. it is bound to surpass buzzwords like synergy or value proposition this year. haidi: i wonder how many times the word stagflation is going to come up as well. it seems like supply chain, demand, inflation, stagflation, delta probably will be there as well. but we are talking about executives at s&p 500 companies, mentioning the phrase supply chain about 3000 times. just on the investor calls on tuesday. it sailed past last year's

record and before we get to companies like tesla, and a lot of the other big retailers as well that no doubt will be impacted by supply chain issues. shery: we are seeing bright and administration trying to increment measures to relieve some of the supply chain bottlenecks. our next guest says the four hour operation at the port of los angeles and long beach help alleviate one point in the supply chain. let's discuss with matt bryson, wedbush securities. when it comes to those 24 hour parts, does this need to be expended or is it the flex ability and the policy focus that will make a difference? matt: i am not sure whether this will -- i would say coming from

this side of things, i am finding more and more often that i'm not talking about chip shortages though that is still clearly an issue. when i'm talking with companies, they are talking about difficulties moving equipment, moving components that they need to produce that equipment from point a to point b. and anything that can be done to alleviate issues with shipping, cargo, would be great in terms of helping companies get the products they need to consumers. shery: bloomberg has learned that apple will take a hit when it comes to production targets of iphone 13's. what are you seeing in the asian supply chain picture right now but the possibility of more pain to come? matt: for some time, there has been a shortage of semiconductors made on older production equipment. the problem is that the buyers

have all moved on to newer equipment which makes sense. having said that, there are a number of phones that are so made on these older processes. there is not more to be had in that is creating pain points for every producer of electronics equipment. it is hard when you can't get -- we're talking about often $.10 or 20 sent parts -- $.20 parts, they are not viewed as that important in the scheme of things but when you can't get those parts, can't make that pc or handset. haidi: it does not sound transitory. what could be the circuit breaker? matt: i think the problem is they need to bring more capacity

online. -- the ability to -- number is even higher. as we transition to 5g, i don't think anyone is going to step back and say no, you're not going to build 5g phones, were going to shift back to 4g, that supply gene -- chain to explore content so it is just bringing on new equipment and the foundries and manufacturers, they have the ability to bring that on but it takes time. the second half of next year,

2023, 2024, a lot of capacity coming on but not a lot until that point. haidi: right. you can't bring on foundry capacity regardless of ambition overnight. in the meantime, we've got other issues. we have an energy crisis, a power crisis in china, potentially wild weather elements in taiwan. should we be watching some of these factors more closely? matt: i think you have to. i was talking to one of my friends in the company that makes headsets and he was saying i'm worried about this, but my problem right now is logistics. i can't get my problems into the dutch products into the u.s. because they are getting stuck on containers -- products onto -- into the u.s. because they are getting stuck on containers. if people can't count on what the invocations of power outages in china might be, they have

more to worry about that is impacting the business right now. haidi: great to have you, that bryson -- matt bryson. we will have more analysis coming up with the managing director and senior investment asset manager joins us. we also have earnings to look at. this is bloomberg. ♪

shery: latestshery: business flash headlines, amazon.com is shopping for used long-range boeing and airbus planes, evidence of their ambition to move products to countries like china by itself. this would see amazon step up rivalry with ups and fedex. honda doubling down on electric vehicles in china, pledging all models in the country will be battery powered by 2030. they build new ev factories in china starting 2024. they're also planning to introduce 10 electric models within five years, some of which will be from its chinese plant.

they want to complete lead dig combustion engines by 2040. blackrock seeing a record from investing, $98 billion that the firm took in last order, about one third went into sustainable funds. the asset manager, a big esg backer says it was especially high in europe. their third quarter revenue and adjusted eps beat estimates. we just opened for japan and south korea, its turned to sophie for what stocks to watch. sophie: in tokyo, keeping an eye on chip suppliers, pledging to reduce impediments to overseas shipments with funding in the next stimulus package to ensure semiconductor capacity. keeping an eye on vaccine stocks in japan as well, reporting the government will offer three drug companies a total of ¥3.8 billion to support covid drug developer.

we are watching fast retailing this thursday which is expected to deliver a rosy forecast for the operating profits on the sales recovery in key markets for this owner and korea's biggest -- posco coming in at nearly $3 billion thanks to high steel prices and strong demand in auto and construction. shery: we have an interview in the next hour, the philippines finance secretary joins us to discuss the nation's economic recovery as inflation surges and the vaccination campaign it rolls ahead. the market opens in seoul and tokyo is next, a mixed picture when it comes to futures. u.s. futures hitting a dutch getting .1% and we could see upside for japanese markets. this as we continue to see the japanese yen under pressure from the u.s. dollar. we continue to watch the market as the korean won slipped below

the $1200 -- the ludicrous level tuesday. this is bloomberg.. ♪

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shery: welcome back to daybreak asia, breaking news out of singapore when it comes to gdp numbers, growth of 6.5%, also easing from the previous quarter. the previous quarter growth has been revised upward to 15.2%.

this is a real slow down from the previous quarter,, quarter on quarter basis missed estimates, growth of 8%, the estimate was -- .8%, the estimate was 1%. previous growth with the contraction of 1.4%. we saw some consensual -- sequential gains, given virus restrictions were eased. we are talking about growth that has eased since the previous quarter. we're getting the latest lines from the twice yearly statement from the monetary authority from singapore, they are saying core cpi will rise to 2% next year. they've also increased a slope of the currency band, singapore does not raise interest rates but uses the currency band in order to tighten policy. at the moment, they have kept the center, but increased the

slope. we are watching singapore's monetary authority very closely. haidi: that unexpected raise in the currency slope is said to ensure stability over the medium-term, there are also coming out with the 2022 core inflation of 1% to 2%. we were expecting a signaling of tightening, but we have had a move. let's get you slight -- straight the markets. sophie: taking a look ahead of the dissolution of parliament, we have stocks gaining ground for the nikkei after a two day drop, we're seeing tech names gain grounds. this as a pledge to boost spending in's semiconductor capacity at home. we are a drag on the topix. again, we are seeing it hold

steady. still above the 113 handle. as earnings season picks up, keep an eye on reports this thursday along with a headliner, as to capacity will be looked to amid supply chain disruptions. switching out the board, keeping on the semiconductor space, the prospect of hitting peak cycle in the industry, customers are restocking. samsung shares gaining by one third of 1%, helping with the cost be higher of 8/10 of 1%. the korean won is trading at 1189 against the greenback. traders have been dialing back bets that authorities will intervene to curb the weakness for the currency. checking in on the price action in sydney, stocks are snapping a three day drop, tech and miners lead gains. this as we have south32 gaining

ground on the back of its deal to secure a 45% stake in a chilean mine. property shares are under pressure, the fall of oil prices on global demand. oil prices steadying this morning, brown's edging higher by one half of 1% this morning, and we have the cnh, dollar china trading before 643, holding onto a two-day gain ahead of inflation data do later. this follows a week credit report from china. haidi: we look at 10 to watch that market reaction. really, we have a surprise move. let's get more from our chief asian correspondent. we were not expecting tightening to start until april.

haslinda: expectations are no move, but obviously inflation front and center. inflation for the year to be at the upper end. in 2022, 1% to 2%, which is quite a surprise. when you take a look at inflation and singapore, it's been on the ups, 120% on average. there were expectations that we will see the shift, unlike the others. taking a look where we are, if you recall back in march 2020, singapore did move the center of the band lower, essentially providing the biggest monetary easing since 2009, the financial crisis. with this move, it's countering the move with expectations of inflation going higher. it's interesting when you take a look, because it does not take

into account the uptick in the property sector the way korea does. costs tightening which we saw earlier this year, but it does take into account fuel, food, that is where inflationary pressures are coming from, hence that move today. shery: really interesting that only one economist surveyed had expected the maf to actually raise the slope of its currency band, and they did. it seems a lot of central banks are surprising to the upside when it comes to dealing with inflation, they have also dropped accommodative language that they have in previous statements. what does this say about the move forward for singapore? haslinda: you have to put this in perspective. most central banks review the policy every six to eight weeks. singapore reviews the policy every six months. it has to be forward-looking,

that is why they are considered one of the most forward banking central banks in the world. it has to take into consideration what is happening in the next six months. the sense is inflation is trending higher. we are seeing that in oil, the highest level in seven years, that is expected to persist. you are hearing voices of $100 for oil. singapore has to -- they cannot be caught behind the curve. if the fed moves in november, the bank of korea moving, singapore has -- is able to move only in april. it could be caught behind the curve. it is anticipating the move from the fed and other central banks in the region as well. shery: our chief international correspondent with the latest from singapore. let's bring in the regional cal

at global wealth management. great to have you with us, give us a reaction to this unexpected tightening. guest: what she said was spot on. if you look at the components of inflation, they have been rising . for example, gas prices are at an all-time high. 70% of energy is driven by gas. petroleum is rising as well. the property sector is pretty buoyant because we import lower interest rates from the u.s.. given the fact that last time, when we had inflation comers this numbers, it was not just confined to a few components like it was before. in the next couple of months,

you should see inflation being higher than expected. shery: will we see more central banks surprising to the upside and tightening the cycle faster than expected, what would be the market applications? kelvin: i think most of the countries in this region are struggling to recover from delta infections. they are slightly behind the curve. for a couple of countries, they might have to start tightening soon. these countries are more dependent on fuel, oil. taiwan and thailand are two countries most vulnerable from higher oil prices. these countries might have to think about increasing rates. for the rest of southeast asia, i think we are still stuck in recovery. i think if there is any tightening with the cycle is concerned, it will probably be

boats -- towards the end of the year or early next year. haidi: does the stagflation risk feature in your portfolio? kelvin: no. you get stagflation when you have high inflation and low growth. at the moment, we have high inflation and high-growth. i think the stagflation narrative -- a lot of the inflationary pressure is coming in from the supply side. supply can be increased. we think over the next 12 months, you will see the supply constraints easing. a lot of the supply chain disruptions, workers were sick. with higher vaccination rates and introduction of the bill -- pill, we do think we will see the number coming off and barking of escobar. on top of that, the current

supply and demand deficit in the oil market will resolve itself by the second quarter of next year, when you see supply going back out. less than not based, the oil risks put in place by the u.s. will start supplying oil. for next year onwards, to think oil prices are likely to trends to the longer-term average of around $65, 75 dollars a barrel. haidi: as the threat over evergrande past? or should investors be worried about the longer-term. kelvin: i think the evergrande situation has stabilized. the problem is we have some other issues defaulting. the fact they chose to default when they could afford to prepay or refinance the loan, the bond.

that did a lot of damage to the credibility of the index, i think investors were bailing out on the basis of that, not on the basis of rising default levels, because they could afford to pay. going forward, i think the government is quite likely to make sure some of the other issuers who can afford to pay off the coupon will choose to pay off the coupon. i am pretty sure there will be pressure on that front. if the property market is concerned, filings are down. prices have been holding still. prices have been quite stable. we expect more easing on the policy front, one local government to that over the weekend. they started to ease pressure on developers. we expect more and more local governments to follow suit.

on top of that, we expect the big government to ease credit towards the end of the year, and perhaps a cut in the reserve requirement ratio for the new year, in the near term, the lending rate as well. haidi: ubs global wealth management regional cio. let's get you to vonnie quinn. vonnie: president biden says he wants to break a logjam in u.s. courts and stave off shortages and delays. he has announced the port of los angeles will begin operating around the clock and says retailers have pledged to step up efforts. holiday shortages would be a political nightmare for the president who is already facing claims's policies are stoking inflation. >> this is the first key step to moving our entire freight, blockchain nationwide to a 24/7 system.

vonnie: the sec says the wager has high-profile names. steve bannon is among them. the commission alleges him and others gave cash to start up through an illegal stock offering. some money was allegedly directed to a hedge fund. the sec says more than 95% of the $30 million was lost. finance ministers from the world's biggest economies have endorsed a global tax overhaul. 136 governments had reached a deal over a minimum rate to be set at 15% for corporations. plans have been scrapped after the u.s. said they were is from an attorney. they are now set for june 30 -- 220 liters to be approved later this month. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i vonnie quinn. this is bloomberg. shery: still ahead, we speak to

carlos dominguez on plans to strengthen the markets. but first, analysis on how -- this is bloomberg ♪ this is bloomberg. ♪

shery: attention is turning to china's inflation data. factory prices are expected to surge again on gains in commodities, let's bring back our global economics and policy editor kathleen hays. kathleen: remember when it was pmi's? now it's nothing but inflation. this is an important report, because factory, producer price inflation has been rising.

supply chain constraints make all kinds of things tougher to get. you see that white line showing us to gain in the latest months of august, 9.5%. that's a big jump. meanwhile, cpi, food prices pulled back, or prices are expected to be tame. that's the china picture. what does it mean? i think patients, because when you have things like rebar crisis -- prices. they will say 47% probably won't rise quite as quickly. you can billy see how in less than a year it's gone from 1.7% up to 10.7%. the cpi, i think the pboc says there is not much we can do.

i think the other question is what this means for the health of the economy. for growth, the jobs. these are the things that can crimp output and make it harder for producers to get what they need, afford to produce it, and keep the price low enough to sell it. haidi: china is aimed to still drive exports inflation around the world. kathleen: certainly for the u.s., still so dependent on exports from china. as you mentioned, christmas time is coming, holiday shopping. people go to the store to buy things that come from china, they're probably going to see prices moving higher. uscp i and china. guide is the -- u.s. i and china ppi is the relationship. many countries depend on imports from china.

when it comes to the cpi in most advanced, economies,, the inputs are not the biggest part. at the same time, when there are so many shortages, the supply constraints, i think it probably has a bigger impact on the pass-through to retail prices. that is going to be watched very closely area. haidi: kathleen hays there. we have more coming up when it comes to china's economic outlook at inflation numbers. the chief economist for greater china will be joining us. other big interviews ahead. the philippine finance secretary carlos dominguez in just a few minutes time. siri leica opposed -- coming up, j.p. morgan kicking off third quarter earnings with a blockbuster deal making quarter, but lackluster loan

growth. the share reaction as well. this is bloomberg. ♪

shery: j.p. morgan posted the best quarter yet thanks to the recent surge in, day activity, but shares continue to fall on concern about muted loan growth. su keenan joins us. su: investment banking was the star of the show, but loan growth stole the thunder. it underscores what's on with the recovery, and while total loan growth was up 6%, consumer loans were down 2%, commercial down 5%. lending conditions are proving but it's going to take time. let's talk about those record deal making these.

they crushed estimates, investment banking of 52%, that and come at $11.7 billion. downturn in shares because of concerns about the loans. jamie dimon touted the banks strong result despite damaging effect of the delta variant and supply chain disruptions, a lot of talk about the economy and inflation, he has brushed off concerns. trading revenue was strong but down from record levels, the year-over-year comparison was very strong, trading revenue during the pandemic and bond revenue not quite as strong. again, great but down in terms of year-over-year. $2.1 billion revenue release. a lot of analysts are asking how the bank glanced to deploy its capital, dimon says they will follow a 10 year plan. also talking about how things

are getting better with workers coming back. haidi: in terms of what we are watching out for other banks? su: a lot of focus again on loan reserves. they had predicted j.p. morgan would do better, in terms of the lending numbers, saying that citigroup's card balance and payment trend will be in focus, bank of america kicks off on thursday, the revenue diversification is expected to serve the company well. wells fargo shares of 51% year to date, some analysts morning it is price for perfection, they have some regulatory issues. morgan stanley will come in and the back of the back. the institutional revenue is expected to be robust given the trading revenue is skewed more towards equities trading, and

there has been strengthen m&a and ipo's. you're looking at the bank index. bancshares for 2021 have been one of the strongest performers for the year. shery: su keenan with the latest on u.s. bank earnings. quick check of the latest business headlines. plans to invest that trade on commodity exchanges. wood had mentored name to the atf, which would track the world's largest cryptocurrency is measured by the index. blackrock is seeing a record slot of money as a jump to sustainable investing, of the $98 billion the firm took in last quarter, about one third went into sustainable funds. the asset manager ceo who is a

big yes to backer says returns were especially high in europe. blackrock's third-quarter revenue both be estimates. hyundai is doubling down on electric vehicles and china pledging all vehicles introduced will be battery-powered by 2030. the carmaker says it will build two new ev factories in china starting in 2024, it also plans to introduce 10 new a letter models within five years, some of which will be exported from chinese plants. conduct wants to completely ditch combustion engines by 2040. dow shares jumped on -- 445% interest in copper mine in chili. the deal includes the contingent price consideration of up to $500 million. dow 32 says funding will be an

underwritten bottle -- we have plenty more to come on daybreak asia, to stick around. this is bloomberg. ♪ it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? ...delegating? oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today.

haidi: we are getting the jobs numbers for australia coming through for september, the unemployment rate taking lower than expected, 4.6%, still arise over 4.5% but not as high as 4.8%. in terms as the employment jobs change, we saw a loss of 438,000

jobs, slightly worse than expectations. full-time unemployment changing within addition of 26 point -- 27,000 jobs. the part-time change, 164.7 thousand jobs. the participant rate lower, falling from 65.2% to 64.5%. still a little bit better than what the market had been expecting. this as australia's market continues suffers with numerous lockdowns. borders between states have largely been closed and has affected the distribution and migration of labor as well as some of these key industries like the services sector being affected by covid research and. let's get you to vonnie quinn. vonnie: singapore central bank

has modestly tightened its monetary policy as price pressures build. they increased the slope of its currency band slightly. it's twice yearly decisions provide a window on the global economy, given singapore's high exposure to trade. they say court inflation will average 1% to 2%. the treasury yield curve flattened after a faster than expected rise in u.s. consumer rises reinforce the view that the fed will start removing monetary stimulus. cpi jump from 0.4% to august 25.4% on the year, matching the biggest annual gain since 2008. minutes of the fed meeting said officials agree they could start tapering as soon as next month. the who has proposed a new team to lead an investigation into the origins of the covid pandemic rid. the members were suggested from 700 applications with expertise

will range from eric dane realogy -- epidemiology to bio security. they found it probably spread from bats humans via another animal. china is promising its people will be kept warm and the long-term climate goals will be met. officials say the coal supply is secure, meanwhile speeding up the production of wind projects. the energy processes force nationwide power cuts factories. the government says it's handling over the power crunch before peaking missions. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: we are seeing broad gains across markets in asia, seems to be a risk on day. sophie: asian stocks building on the gains we saw on wednesday,

the nikkei peaking at gains of 1.1% ahead of the dissolution of parliament, this after a pledge to boost capacity for domestic semiconductor manufacturing, to reduce reliance on overseas shipments. we are seeing gaining ground in tokyo. samsung giving a boost to the kospi, gaining more than 1%. piercing it was for the korean won as well, trading below the 1189 handle, the dollar getting lifted. the yen is under pressure, staying about at 113 handle which has been a headache. in the commodity space we are seeing oil prices recover some losses we saw overnight triggered by opec, brent anding about one half a percent. metal trading in london is somewhat steady with aluminum holding a 13 year high.

haidi: goldman sachs investment baking cohead says dealmakers are looking for opportunities in all areas. he spoke with emily chang at a conference in california. guest: where doubling down on everyone. what an exciting time. i journalists, or a banker. it is an extra ordinary time. where doubling down on everything, there are trends that are exciting. cutting edge technology. companies that will deliver the future, artificial intelligence, augmented reality. all of the things about cutting edge technology. those are exciting. equally, when i think about goldman more broadly in the economy,. but i think about the attendee list at a conference like this,

you are seeing a lot of opportunity is in the places of overlap, between technology and traditional. financial services entech, fintech. auto tech. real estate tech. that is where a lot of the excitement is an activity is happening. we are trying to treat technology the way economy treats technology, which is having it be pervasive in groups. shery: the investment bank cohead dan dees. another chairman sees inflation as a passing threat. she spoke exclusively to bloomberg about some of the difficulties the world and banking sector are facing as they strive to transition to a more climate friendly future. >> what has been the impact? is that one of the biggest things we should worry about, we

are underestimating the societal impact? >> there is a lot of talk, this is linked to financial markets, is inflation temporary? i believe it is, in the sense that covid is a one-off and created a spike, u.s.-china is ahead of where they were pre-covid. durable be there. i think energy is a factor, but it's part of the broader picture of how do we green the economy at a cost we can afford and is fair, where the cost is borne by everybody. >> you have a great snapshot of the world, because you have an overview of the emerging markets. what worries you? ana: first, the positives. we're in a much better place than a year ago. 6% global growth for this year,

4% for next year. that's actually pretty good. the other is governments are making sure businesses survived. those are very positive signals. the other is a huge amount of savings. savings and 2020 increased i $110 billion. on the risk side, what happens with the excess government debt, but happens when businesses and people are taken off life support? do they go back to being an irregular situation and able to cope? is inflation temporary? >> that could be received zombie companies? what are you hearing from

clients, what should be be focused on? ana: one of the things we have to manage is, how do we approach customer behavior that is radically different? 50-year-olds and anyone about that age had a hard time banking on mobile. during covid, a lot of people had to do it because they did not want to go out of their homes. how do we bring people along to the digital transformation, everyone has a chance in the new economy? those are the big issues, responsibility of business. for us it is climate change. each company has to choose where they want to have an impact over and above the business impact. creating jobs and serving customers. >> as a banking executive, you

are one of the first to talk about the digital transformation, fintech. how do you see santana down there -- santander panning out in the next four years? ana: we are quite different from others. we have in market scale and global scale. the global scale is 150 million customers, 2019 we were investing $20 billion over the next four years in technology to make the transformation. we decided to work on three verticals. one is what we call one santander, how do we make a single global platform, at the same time able to compete locally? 150 million customers. the other thing is our global payments company. that may have the digital consumer bank.

we're going to do it inside the bank and with an autonomous payment company that we believe can be one of the top 10 or 15 global payments companies in the medium-term. [no audio] haidi: the executive chairman speaking exclusively with bloomberg. one of the world's top iron ore producers wants to be completely green. you can hear our conversation on the net zero goals, next. this is bloomberg. ♪

shery: taking a look at live pictures of cathie wood, the ceo of arc investment delivering a keynote speech. having a conversation, this as cathie wood has been talking up the crypto space, ark strategy,

dtf planning to invest and wood joining other wall street players helping u.s. regulators would soon green light that etf tracking bitcoin futures. wood earlier letter name that would directly track the world largest cryptocurrency as measured by the s&p bitcoin index. wood speaking at an investment conference. we have seen significant upside when it comes to bitcoin, above $57,000. it fell a little bit in the new york session but is now flirting with our run towards its all-time high, it has jumped more than 90% since the july low. some chart watchers are seeing $85,000 as a potential goal in the next few months. crypto assets worth $2.3

trillion, about 200% more than at the start of the year. haidi: an iron ore giant is making a green push. the billionaire founder is planning a hydrogen equipment factory. it comes as the world's fourth largest iron ore player is eyeing zero emissions from steelmaking customers within two decades. we spoke to him earlier. andrew: it will rival call within a decade, but will completely remove coal? no, we will wrote -- move over, but my argument is we have so many more, thousands of times more abundant renewable energy. let's stop dithering, let's stop mucking around and make the switch as soon as possible. let's go completely green by 2050. haidi: how do you plan to

finance all of this? anmdrew: policy settings supporting economies. you have 120 trillion australian dollars already committed around half of the investable capital in the world back in goes countries which are committed to going completely green by 2050. how can you not finance? the other half making their judgments. now is the time to make sure liquidity is available to great australian products -- projects. that is our job. shery: when it comes to these projects, how important is it to drive down costs in order to make them viable? andrew: you're doing it right now. we have established -- we are doing it right now. we can manufacture all of the

great products which the green future is going to need. let's start with electrolytes, the missing this let's water into valuable commodities, hydrogen and oxygen. right now, i can buy electrolytes for around one million euros. i will be able to build these in australia for 300,000 to 400,000 if not less, that is a drop of 70% to 80% right there in a critical element. that cost is already falling. shery: does that make you more competitive against china? andrew: china is a global leader in manufacturing, but australia is a global leader in everything -- having everything the green future needs, all of the sun and wind, which we can be -- make cheaper than anyone. it's answer reason we should also be able to make goods that

are nearly 100% manufactured item which go into industries come from overseas. i think it is time to stop that. i think it's time to say hey, we're going to be such a massive consumer of wind turbines, everything, let's make it right here it australia. haidi: hydrogen has been called the swiss army knife of energy facilitators. it is not for every purpose, because there are lots of things where electrification, renewables exists at a cheaper level. andrew: i completely agree. we are envisioning a future which is green hydrogen. we see that three elements coming together completely replace 30 building products like cement and steel or energy

like coal and gas. shery: andrew forrest there. you can get around about the stories you need to know in today's edition of daybreak. bloomberg survivors go to the terminal, it's also available on mobile. customize your settings so you only get the news that you care about. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. delta airlines fell after warning rising fuel costs threatens earnings. the carriers as revenue returned to 66% of pre-covid levels, net income came to $194 million or $.30 a share. delta kicks off the reporting. with united, american do for next week. sources tell us amazon.com is shopping for planes. more evidence of ambitions to move products from countries like china by itself. both clay models are a notch above its current the of -- fleet.

investors beat analyst estimates for second quarter profits, a 12% increase on the year before. raising the revenue outlook for the year ending march 22 and is -- the pandemic forces more migration online. shery: we are seeing this boost when it comes to semiconductor giants. tsmc is expected to report a profit jump in third-quarter warnings as global demand continues to search, but will the supply chain crunch put pressure on production? our asian tech reporter joins us now. what will investors be looking for during the earnings call? reporter: investors are likely to focus on comments on the chip shortage that is affecting apple and expansion plans including in

the united states and japan, and whether tsmc might raise its capital expenditures thanks to the rise of 5g and next generation technology. haidi: when it comes to the chip shortage, are getting possibility of relief? reporter: we have seen tesla saying chips -- a disruption in logistics and semiconductor supplied being a threat to these companies. bloomberg reported earlier this week that apple is likely to cut production goals for its new iphone due to chip shortages. just a few hours ago, an

executive told reporters that the worst of chip shortages has passed. we will see what tsmc has to say about the overall situation later this afternoon. shery: for the big buyers, and what does the supply chain look like when it comes to the biggest sectors that will take a hit? reporter: in asia, we are seeing competitors grapple with chip shortages, and other electronics makers. some of the executives here have been saying those who secure critical components can booze themselves. -- boost themselves.

it's a wide variety of companies that have taken a hit in asia as well. haidi: let's take a look at some other stocks we are watching. sophie: looking to chinese stocks links to eldercare, asian culture mothers -- beijing calls for measures to boost fiscal support. keep an eye on chinese property, after latest data showed liquidity walls -- woes crumpton moody's to downgrade the real estate firm which now has a negative rating outlook. switching out the board, and singapore keeping an eye on banks with jeffries reiterating [indiscernible] [indiscernible] plus a taper without attention. a constructive backdrop according to the broker. the central bank sees more wage growth and improving job market there, tightening a surprise

with mes seeking to stabilize inflation pressures. in the wake of that decision, the singapore dollar is higher. shery: seems to be the trend we are seeing central bankers surprising to the upside given inflation concerns. take a look at the broader markets, seeing brought upside for asia, the nikkei gaining 1%. seeing tech and consumer staples leading to decline. this as we see a pretty weak japanese yen, talking about 113 versus the u.s. dollar. it's are the weekend more than 4% in the past three weeks, it is the worst performer among g10 currencies. not surprising given we are seeing this move from the federal reserve toward tapering, but of course the boj is not doing much, they're keeping the policy unchanged. the kospi is also gaining ground , a two-week high. domestic big interview later,

sri lanka due to post a late -- rate decision. a governor joins us with plans to provide clarity to investors. that is it for daybreak asia. markets coverage continues as we look ahead to the start of trade and hong kong. hong kong is actually close on holiday. this is bloomberg. ♪

♪ david: this is my kitchen table and also my file to him. over much of the past -- filing system. over much of the past two decades, i have been an investor. then i started interviewing. i watched your interviewing. i have learned how leaders make it to the top. >> i asked him what she wanted, he said to 50, is it