haidi: welcome to "bloomberg daybreak asia." shery: our top stories this hour. asian stocks set to open higher ahead of china's gdp numbers. new zealand inflation hits the fastest pace in 10 years. the pboc governor says china can contain the risk from ever grand

but blames firms mismanagement for slowing down the economy. how's netflix sees its mega hit show generating nearly $900 million. haidi: let us get you started with the markets with the start of trading in sydney. vonnie: let us take -- sophie: let us take a look at the opening. we are seeing future energy gaining ground as oil prices climb. it is over $82 after clinching an eight week gain for crude. the aussie share market looking for a third day of gains as we see this move higher. look at the hot aussie dollar highs for the fourth straight session. piercing moves in the bond market as -- of note. switching out of the board, we are seeing moves for kiwi bonds as well. climbing to a january 28 high. this after the report came in

higher than consensus. over at westpac, the cpi reports supports their view for more rate hikes in the coming months as they look for a strong medium-term inflation outlook as price hike pressures are easing. in the wake of that cpi report. check out the offshore yuan above 643 as we count down to china's gdp from the third quarter and monthly activity data. haidi: we continue to watch the fallout from ever grand. we have been focusing on commentary from the pboc. wrecking your silence when it comes to the broader systemic risk from ever grand saying he sees that risk to the broader economy and the downside able to be contained. it is interesting because from the people we spoke to, the focus is shifting from just ever

grand to beyond. the surprise from fantasia, these payments that have continued to be missed and what it means for the ongoing debt situation for the local governments that are now going to have to handle situation. it seems that pboc from a top-level view that can be contained. shery: we're seeing that weakness in the property sector already. but is lit into the sharp pullback when we saw in credit growth in china. it really is not surprising that goldman sachs is saying that china will not cut the rrr. they are saying that the pboc pledging to keep liquidity relatively stable means it will not be a cut from the rrr but open medium-term operations and we will continue to watch how the pboc carries out policy. the risk right now doesn't seem to be specifically on ever grand

anymore but how that spreads to the broader economy. haidi: we will get more details on the data dump. the retail sales pace is particularly interesting giving the weakness we have seat in the consumer side of things. the missing chinese taurus has been a part of the slow down here but we could see other markets returning to this country. australia is in these rapidly developing talks with singapore to be included in the green line or travel -- travel bubble quarantine free travel. we are also hearing for the medication front as new south wales is open and melbourne is reopening this week. we are expecting higher cases with higher vaccinations but australian government is saying they have secured additional treatments from the likes of outside as well. shery: here in the u.s., we might be seeing a sort of mix and match boosters for covid-19.

we have seen the booster shots gaining more traction in the u.s.. dr. anthony fauci saying he expects regulators to consider whether people who got that one dose j&j vaccine should get an mrna shot as a booster because immune response with j&j dose is lower than those with mrna vaccines but of course, this could lead to some confusing public messaging so regulators are working that out and we watch happens on the pandemic fronts. they are expected to show up in a sharp slowdown in the for third-quarter gdp. we have a preview. how big of a hit will taken china? anchor: for an economy that went double digits that when 8% this year, it is a steep slowdown. it is interesting how our ego

team, double whammy's, mmm is, how about multiple whammy hits from things like the consumer slow down? locked in your house and cannot spend. the energy crunch all kinds of forces including the lack of coal to fire up plants. the supply chains hitting china like everybody else. the latest crackdown's extending to fintech. what will happen to property developers? it is all there. it is slowing down to 5.0%. that is a year-over-year number. the range of forecasts range from 4%-5%. it is a wide range and a slowdown from this number in the second quarter. forces hitting other key numbers. number how the index fell below 15 the latest month? had slow output. a bright note. china retail sales are looking

stable or even better than 2.8% in august and more in september. that is good news. questions are on property developers and construction relating to the fixed asset management numbers thing expected to slow. speaking in washington today, we expect the gdp to be at least 8% for this year. haidi: he also expressed confidence that the ever grand meltdown will not translate into systemic risks for the economy. anchor: he did. there's also a bit of concern here. basically, he still thinks that the situation is evolving in such a way that it seems to be " under control." let us listen. guest: overall, we can contain the ever grand risk. first, we try to prevent the completion of ever grand to

other real estate companies. second, we try to contain the risk for the financial sector. anchor: he does say that they can contain the risk. when you think about financial institutions, the rights of creditors and shareholders will be respected under the law. no guarantees a bailout sort and sos to put around your neck and the water to keep you afloat. he also said there is concern with consumers. they will be able to get the houses people paid for, already bought from ever grand and other property developers. for now, i would say systemic risk can be controlled. they don't see that as an issue and if they are correct and all the stays within the property development sphere. if it doesn't hit the banks, the risk is spread across hundreds of chinese banks so that it is not concentrated. interesting that he himself,

head of the pboc said this when i asked him this question of the group of 30's annual banking in congress. he shut somewhat on with thinking at this high level is. haidi: inflation lumen watch for policymakers. bank of england governor said that it will add to pressures. >> it means it will last longer. it will, of course get into the annual numbers for longer as a consequence of that. that raises the fear and concerns for expectations. we had ink of england have signaled and this is another such signal that we will have to act. that action comes from our monetary policy meetings. haidi: let us ring in our correspondent for more. we had new zealand consumer inflation surging to the fastest

in 10 years. this idea of transitory, is it fading or is it structural dislocation on the pandemic effect? what is going on? reporter: it is interesting. when you listen to the governor, he was making the point that he thinks it is still transitory. they still have to go ahead and raise these costs. it is all about inflation expectation. the whole side debate in the world of economics about inflation expectations per they still believe in it. he is megan the point that if these price pressures brush there, they gotta move through in the meantime. there is inflation rate of 4% this year. we know that the market is already vetting that they are going to raise interest rates. by all accounts, the governor could not been more direct or explicit. he said in his comments that this was another signal that they will reign in the rates and all indications are that the bank of england will join the others such as new zealand and south korea and raising borrowing costs to tame rampant

inflation. shery: when it comes to the supply chain disruptions, the bloomberg story is calling this a bit crunch of 2021. is that what we are calling it? is there a circuit breaker here? reporter: that is a good day and. the latest comes from hong kong and the next or neighbor. there are over 100 ships backed up there because of what happened this past week. when you have a delay in hong kong, that leads to delays in the west coast of the u.s. and europe. that means delays in getting goods to the shelf and higher costs in getting those goods to the end consumer. that is true to the inflation story. their ongoing? 's over the durability of the global recovery. there is no sign of a circuit maker yet in the supply. other manufacturers that we speak to now are no longer

talking about christmas. that ship has sailed. they are talking about their spring, summer order book. many people are not seeing a nerd -- near term circuit breaker. as long this continues, the more pressure from the inflation run and downward pressure that will end up on the consumer. the greater the risks from the recovery to this big supply chain. they are call it -- shery: it sounds like a serial. the bit crunch of 2021. thank you so much for that. let's get to vonnie quinn with the first word headlines. vonnie: thank you. if feel -- new zealand's inflation jumped faster and the third quarter fastest in 10 years. the central bank will raise interest rates. the rate surged to 4.9% from 3.3 percent in the previous period. they are targeting a 1%-2% band.

china will so global dollar bonds for the fifth straight year as they are attracting more scrutiny in the ever grand crisis. mastery of finance will raise $4 billion to the offering in hong kong on tuesday. that is one third less than the $6 billion in the last two years and more since 2018. this is a four-part deal come arising of different year maturities. japanese prime minister has made an offering to a controversial war shrine, and great and south korea on the weeks -- after weeks of become the leader. he donated religious ornaments to mark this shines autumn festival. it honors millions of japanese war dead including 14 men convicted of being class a war criminals after world war ii. they will borrow me on mars military -- bart myanmar's military leader later this month. this is the biggest reviewed since the material you toppled a civilian government led by a

civilian. the southeast asian block has been under pressure to halt subsequent violence that has killed more than 1100 people. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is -- i am vonnie quinn. this is bloomberg. haidi: still ahead, we will hear from the group ceo about how the hong kong businesses emerging from the abyss. that is coming up on generation next. market outlook amidst inflationary pressure. this is bloomberg. ♪

haidi: asian stocks will will

start the way higher after there are concerns of inflation and the economic recovery. our next guest says conditions are conducive for risk asset but there is a long overdue pullback for joining us now is the head of research at asset management. what will be the major catalyst? there are so many concerns over these clashing's of different crises. energy costs, what is going on in china, the slowdown of the consumer. what will be the driving force for the next period of time? guest: many moving parts of the supply chain disruption but the market is topped off quite well and sending off mixed messages. it is an aggregate. in aggregate that we know that these conditions are conducive for earnings. they could be growing well above historical benchmarks at the start of next year. it is an aggregate from

different components. take a step back. people will understand it is good for commodities. different components of it. energy has been debated for some time. trying to get those old-time parts. some will circle high and that will continue within the base metals and bulk commodities is a mixed bag there because of the underinvestment for different reasons. for thermal, they are traveling hard. economic conditions are still expanding even though the downgrades which were anticipated were expanding economic conditions at a decreasing rate, well above average. because it is well above average, earnings are expanding. toebbe not as much as six months ago.

haidi: do you think the bearish bets will be more commonplace going into 2022? what would you be shorting for that portfolio next year? guest: short since 2012 and hard to hold for long periods of time and protection as well. there is still an opportunity by september. nasdaq, dell, down several percent. that is when you can drop it -- draw down and anticipate. still too early to be doing that at the moment. your shorting by specific names and sectors. this is still a buy the dip structural long market because economic conditions are expanding. the challenges are being softened from these elevated

levels and that is still conducive for risk asset and that is why everybody is comfortable that they are working on the curb. second half of next year, they will be raising rates. to make it clear, still a conducive risk on by the dip scenario. shery: for how long, given that we were talking about the surgeon commodity prices? if the market would not be unstable and we see this increase in volatility, how willing what the fed the two-step back into the market to pare back those tapering plants that it was in the last cycle? guest: i think the fed has been more than clear to everybody that the tightening in the beginning will be completed sometime next year. possibly september quarter. there is a lot of liquidity in the system. you are seeing it evidenced in

the quarterly earnings coming in the u.s.. there is an incredible phase from u.s. banks and that will continue into next year into 2023. the thing to reinforce is that their expectations for risk asset understanding. you will hesitate that liquidity out of the system. monetary policy is not just one but it is variations. the top yield is completely different from where it was decades ago. they will be entering into the market to transition but it is a height right involved -- environment. it still isn't spending economic conditions. that is effectively spending earnings for conducive

environments. credit conditions are quite good. shery: we are still saying that equity rally. goldman sachs posted a surprise jump in australian business, rounding out a stellar quarter from wall street's biggest banks. their ceo spoke with us about the results and headwinds facing the economy. haidi: there are handful things -- guest: we are making progress of the vaccine. i did state on the earnings call that i feel like the viruses, the worse of the viruses impact on the economy is likely behind us. we obviously have inflationary pressures, particularly our wages. we have an active debate over infrastructure spending and other fiscal spending in washington, a potential tax increase. if a complex dynamic between the u.s. and china. there is still some uncertainty around the delta variant.

all of that leads to potential headwinds. it doesn't mean that we will see headwinds but we are starting to see a more sustained economic recovery. those are a handful of the things you have to watch closely as we move forward. anchor:'s as inflation goes, do you think that investors are undercounting how much of an issue this will be and will it force the fed to hike sooner than people expect? guest: i think there is no question that inflation is a topic that is front and center with every investor i talk to and certainly, with every ceo planning a business of any size or scope. there is real wage inflation across all aspects of the economy right now. certainly because the supply chain constraints, and other influences. i hope one of variety in products and services. this is something to watch very closely. it is not into the cake as to

how this will play out and whether or not it will be a significant issue going forward. haidi: you can watch us live, catch up on those past interviews on our interactive tv function at tv . you can dive into any securities on the bloomberg functions we talk about. lots more ahead. this is bloomberg. ♪

shery: we are counting down to the started trade in tokyo and seoul. we are watching how the elections at the end of the month are shaping up. 30% of respondents to paul said they will vote for the ruling liberal democratic party. in a group of pressure to halt the use of coal intensifies, japan's finance industry says they support the decision of

development banks to stop the port for new projects. we're watching toyota cut its cost production target by 15%. this as that shortage of parts continues to weigh on the automaker. they will hold a meeting with his u.s. counterpart in washington. a report by the pentagon intelligence arm says the u.s. continues to observe activity in north korea nuclear sites. whether that is inconsistent with denuclearization. haidi: it's time for a quick check of the headlines this hour. facebook will create 10,000 new high skilled positions in europe within the next five years part of their efforts to develop a meta-verse. targets for hiring includes countries in the eu but the u.k. is left out of the plan. netflix is estimating its latest hit "squid game" will create $900 million in volume for the country.

as a clearest picture yet on how they measured the success of its programming. it could get more on their megahit in today's edition of daybreak. subscribers go see

♪ >> i hope -- paid more attention to our revenue. >>[please stand by]

>> the energy story will last longer.

it will get into the annual and that raises the fear and concern. that is why the bank of england has taken hold. we will have to act. that action comes in our policy meetings. >> the pandemic hit supply shocks intensify. bloomberg shows at least 107 container ships are awaiting all hong kong as of last friday. the pileup worsened in a typhoon rushed past hong kong last week. rbc capital markets 70 77 -- 77% of ports are seeing a long time of turnaround. hong kong markets are going through a rough patch. several potential billion-dollar ideas have let their applications lapse amid regulatory scrutiny. supermarket owner and health

care start off we dr., -- we doctor, behind south korea for the first time in four years. 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. >> indonesia is the second southeast asian country after singapore to impose a carbon tax. there was criticism that the raises too low. there finance minister told bloomberg the country must employ those in his tax -- must impose taxes cautiously. >> our general revenue increase from this tax refund is definitely of the -- proposal. during this covid situation, the extra spending for -- is significant. we have to scale under the social safety net as well as

support the business in order for them to afford to recover. also, new building infrastructure. we just acquired -- to stay productive. it all comes to general spending. it is just when we prioritize for the government. at this moment, human capital may health and social safety nets infrastructure, and many infrastructure for the green new infrastructure is going to be critical for indonesia to recover. >> i am glad you brought up green economy because indonesia has announced a carbon tax. even if it has been criticized as too small, how do you plan to eventually ramp up the carbon tax rate and expand it just beyond coal over the coming

years? >> you have to appreciate that among the emerging countries, indonesia has been very progressive. not only first honoring our national commitment to reduce co2, according to the paris agreement come at the same time we were together with the finance ministers in order to make sure that this commitment can be delivered. commitments cannot be delivered without financing financing is very important. within that context, indonesia also started introducing the carbon market. if you look at indonesian reduction of the co2, two important things stand out. forestry and energy. if we are going to be able to address these two sectors, we have a significant impact for our own ability to deliver the

commitment on the co2 reduction, and also for the global green commitment. within that context come at the carbon tax introduced on our tax reform last week is going to be one additional important instrument. it is not the only instrument. we are going to establish the market mechanisms, we have to start carefully. we do not want, in this fragile recovery from covid in the economy, to import a lot of policy measures that can weaken the recovery. in this case, the carbon market, cap and trade, will be implemented in a very mindful way so that it can be then build the capacity first, build credibility of the mechanisms, regulation, then it will create

a resource for revenue financing which can create the systems toward cleaner economy. as of now, we have -- on the core base power sectors. it is a dominant one for indonesia. it does not mean it does not mean will stop there. we have to be mindful on the implementation of this instrument, given that indonesia is still in the early stages of recovery because of covid. >> let's get a check in the markets. >> we are seeing swings to losses with tech among the biggest rags along with materials. -- credit suisse on the back of its -- last week. we have energy stocks rising in

australia after clinching an eight week gang -- gain. this comedy is in talks with korea on a potential takeover deal, but that also buys it for dollars $.40 on the dollar. melbourne said to exit a lockdown midnight thursday and australia discussed, as we traveled with reinforced rate hike bets for the rba, which is sending yields high. the three year yield jump into a 20 month high. pulling off the board, the rba expected with more rates hiked. we have seen the kiwi dollar jumping to a one month high. that has been a play since the end since february rebounding from a five-week truck -- five-week drop. .

>> rising to a six-year high with -- not out of the realm of possibility with u.s. yields likely to push higher. chicago futures pushing higher, climbing in singapore to the downside. when you look at what is going on in the fourth quarter come at goldman, shares said a strong end of the year ebony's stock. the yen target their best returns. this sees a brighter recovery. >> command, -- coming up, how the hong kong business is emerging from what is called the abyss. plus, where he is seeing opportunity. stay tuned. this is bloomberg. ♪

>> jonathan zeman, as a child he watched his father alan grow the business from a restaurant and bar to becoming a new influential developer and lifestyle company within mainland china, thailand and

hong kong with a territory no enforcing some of the strictest quarantines, bloomberg asked jonathan how his business was doing. >> business today is actually very good compared to a year ago. a year ago, we were in the abyss. last year, coming out of protests and straight into the pandemic. lester, when things were unclear, customers did not know. the government was not sure what to do about policymaking. last year was probably the worst of my career, and i went through sars as well. this year, things have definitely bounced back and there has been a rebalancing of people realizing it. >> where do you find strength?

food and beverage? retail? >> landlords. so, as a landlord, we luckily were not exposed to a lot of retailers. definitely retailers are very bad, mostly driven by mainland chinese shoppers, but it now has come back, at least the -- of the s&p. people that normally would fly around to tokyo, paris, whatever, they can't do that now , so they are happy to find ways to spend locally. >> you will have likely had a high turnover rate? >> last year, there was some, but as a landlord we try to work best with our partners to make sure they can get through where it makes sense and where it is possible. >> rent breaks? i have seen members from other media and the government, 20% to

30% down, ballpark echo >> that's fair. -- ballpark echo >> we did spend the end of last year trying hard to reformulate our trade links. we realize that health and wellness come up with the pandemic, that's what people care about. putting more health and wellness operators. >> that is the key. adapt or die. what was your biggest change? you didn't just wait for people to come back, you must've had a pivot. what was your strategy? >> the pivot was over a year. we pivoted a few times. s&p was restricted, not a lot of open or restricted from opening. that allows for almost 280 days. it didn't really make sense until towards the end of the year, where operators decided to

take bets that ok, rent will come down, things won't be closed forever, let's make some deals. but what -- what the pandemic did for us, it allowed us to rebalance things and look at what works and what does not work and cut some fat. and then go back to making sure that things like customer loyalty programs are working. employee benefits and things like that. >> what direction you want to take echo -- do you want to take? >> redeveloping different parts of the area is important and also continuing to work on trade and help with -- so it is not just about drinking until late of the hours of the night can -- night. mainland china is a great

opportunity. we have been in sharing new for years -- we are hopefully opening this year. echo how much is your father involved? >> he is very involved. an old-school entrepreneur. he grew up in the business and does not have hobbies except work. [laughter] >> he is very involved. he likes to get involved on the creative side of things, the planning, the design and architecture. he comes from the fashion business, so that is important. >> did he strong-arm you to come on board and take over from him? >> it was me and my sister. i have a great upbringing. i watched my father and mother build the business. i thought it was important to the family business, to help

grow it and take it to the next level. >> allen zeman is a character. he was a big risk taker in the 1980's. i believe this was a traditional chinese supermarket. he had a vision and took a big risk. he borrowed $4 million were spent $4 million on the first plot of land. are you a risk taker? >> we are both calculated risk takers. the advice has always been, cover the downside. in that sense, we are similar. for myself, bringing my own way of doing things i think it is important. i grew up in hong kong and speak fluent chinese and i understand the market very well. with the school in the u.s., came back and brought a new way of thinking and went to

different parts of the business and cart out little projects in middlesboro. also, systemized things. thinking entrepreneurial, taming it and bringing systems, logistics and good communication so subtly we can grow. that was important from an early age. >> what legacy do you hope your family will leave? >> i hope that our family can show hong kong there is a good way to do business. it is not about the last dollar, it is not about squeezing everything you can. as a landlord, we have a good reputation in hong kong. some other good landlords, which is nice. we like to develop people. people that come to work for us, i have always been -- my father was very proud to work for 20 years or more and they started in the mailroom and worked their

way up, which is what my father did. he was selling dresses and worked his way up. we hope to continue to bring this legacy to hong kong and also bring happy memories. >> >> jonathan zeman speaking to bloomberg's steve engle. you can catch more interviews every monday on daybreak asia. lots more to come. this is bloomberg. ♪

>> 30% of respondents found japan's democratic party. under 10% say the vote for the opposition. 40% say they have yet to decide. talk us through some of the expectations for this. >> we are heading -- hedging the vote for parliament on the 31st. they're looking to retain their majority, and it has 276 seats now and the body, which is 465 members. the -- will like -- the ldp will

likely maintain its majority. any erosion of its power would deal a blow. we will keep what it has come a but any slips would be bad news. >> we are now seeing the controversial -- in the headlines. it's a prime minister donating those ornaments as a political stent? >> it is very bad news in terms of its diplomatic standing. one of the first gestures keisha made was the -- in tokyo that honors japan's war dead and also a place where war criminals are enshrined. in countries like south korea and china, to see any connection

with the government is a --. by making an offering there, it sends -- it causes concern in other parts of asia about -- what they often whitewashing japan's past militarism. it is not a good start for diplomatic relationship this early on. >> we saw the -- after shinzo abe lost. what other big challenges? what are the issues as we see the recovery from the pandemic of the multiple rounds of state of emergency. >> for the voters, the voters are looking for new types of leadership growing the economy and containing coronavirus.

kishida is basing his campaign so far on economic redistribution, but in terms of the -- you mentioned earlier, people are much more interested in economic growth than his redistribution policy. it does not seem to be resonating with voters. he asked just a few days of turning things around and he will see if he can get more people on board but these policies to boost salaries and make sure the fruits of the economic gains are spread more widely. >> john herskovitz with the latest. here's a quick check of the business flash headlines. elon musk medassets prize appearance and said he is sure the german automotive giant will master it's moved to electra vehicle. musk told -- he is an engineer

who is fascinated with the production process. vw ceo said tessa's handling of the global chip shortage is impressive. saudi arabia is said to have hit several technology firms with tax bills worth tens of millions of dollars. as it reassesses its tax model for the gig economy. uber and its subsidiary will face a combined bill around $100 million. india's bank fell on 80% rise in quarterly profits, getting a boost from strong long growth as the -- sector gains. net income was just under $1.2 billion. it made analyst estimates on the back of a 15% surge in loans, which was three times the banking sector's rate. >> let's look at the stocks we are watching. we are keeping an eye on asian

zinc, that middle jumps to a major high friday. it would curb european output in the elevated energy costs, therefore maintaining supply. we are giving an eye on toyota after it announced it will cut november carbon production by 15% in light of the ongoing parts and chip shortage. the output to clients is not impact china's output shortage. we will be looking for that. >> coming up goldman-s is china won't resort to cutting, as required, to support growth. we will speak with a chief economist. market opens in tokyo next. this is bloomberg. ♪

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♪ >> welcome to daybreak asia. >> i am in hong kong. >> taking a look at the measurement markets opening in asia -- to start the week with no worries about inflation. new zealand accelerating at its fastest pace in 10 years. china's power crunch and the evergrande fallout expected to

show up in today's gdp reading. -- tells us explicitly about its own fleet of aircraft to bypass the supply chain holdout. let's get straight to the trading. >> we are setting up or a soft iron asia after regional stocks had the biggest weekend in months. we are seeing tibbett gains after a strong two dagan we saw friday. we could see a recovery story that could reverse this year's japanese equities. we are seeing the nikkei right now getting about .1% while the yen is trading near a three year low. shares this morning, the stock shopping 2.2%. even as it trimmed its november production forecast in light of the parts and chip shortages. in south korea, after the -- closed we are seeing it hold above levels although downside

pressure coming through the benchmark of netflix korea partner dexter studios under some pressure after we got estimates from the entertainment company that its gain will rake in almost $900 million. on the korean yuan -- this after it rebounded from a five-week drop, but the outlook is mixed with strategists eyeing. shar market performance in australia, we have seen swings this morning and materials and tech. energy stocks are getting ground as we see crude continuing to track higher. check out the bond markets in australia, bonds under pressure amid height on the rba z with the inflation teams. cash treasuries opening with the

u.s. 10 year yield above 158 this morning for benchmark treasuries with futures pushing into a lower range. >> let's bring in our next guest who says despite inflationary pressure, there is no reason to expect the stock market to do badly. from singapore, mark matthews come ahead of asia research. always great having you with us. given these ongoing price concerns, how much economic or earnings growth do you really need to offset this uncertainty over inflation? >> it seems we have lost market the moment, but we were talking about those inflationary concerns, especially when it comes to the new zealand cpi numbers coming at the fastest pace in a decade. we will continue to watch what is happening in australia and new zealand with new zealand inflation rate dropping to 4.9 per -- jinping to 4.9%.

we have seen a huge move in the kiwi markets, especially credit. as we try to get back, let's turn dollar vonnie quinn with first world headlines. >> make a mainland governor andrew bailey has bolster the case for raising interest rates. speaking to a panel organized by the group d, bailey said the central bank will have to actor curb inflationary forces. higher energy costs mean price pressures will linger. traders are betting the boe will raise rates. >> it will last longer. it will get into the annual numbers for a lot more as a consequence that raises a course of central banks to fear expectations. that is why the bank of england has taken hold. we will have to act. that action comes amongst compulsory meetings. >> -- growing more gridlocked as

the pandemic era's supply health intensifies. bloomberg shows at least 107 container ships waiting of hong kong as of last friday. the pileup worsens when a typhoon rushed past hong kong last week. probably, markets are experiencing abnormally long time so turnaround traffic. indonesia finance minister turns projections for the budget deficit for this year and next has tax reform and rising commodity prices lead to higher revenue pair the country recently passed a tax overhaul, which at the top income bracket, carbon tax. the new measures are excited to raise the company's tax to gdp ratio beyond 10%. >> [indiscernible]

>> during the situation, the extra spending is very significant. we also have to scale under the social safety net as well as to work for the businesses to fundamentally be able to recover. >> china will sell global dollar bonds for the fifth straight year. a deal that is attracting more scrutiny amidst the evergrande crisis. the ministry of finance plants raise $4 billion, one third less than the $6 billion in the last two years and the least since 2018. issuance will be a deal comprising 3, 5, 10 and 30 year maturities. 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. >> let's bring back our guest from singapore. mark, thank you for hanging in

there. i was asking about these inflation concerns affect in the markets already, how much economic and earnings growth will you need to see in order to offset all of these price pressures? >> i think we are getting ample economic and earnings growth now. if you look at the 8% of the s&p 500 companies that have reported friday, four out of five beat estimates. there aggregate was 15% above estimates. the five-year average beat is about 8%. the big cost scare is not materializing it. >> we are seeing the bond markets already start to move, the australian theory year yield -- the australian three year yield at its highest. qb yields also continue to rise, given the cpi numbers. where the implications of rising yields for the broader asset in

asia? >> so far, the markets are happy. what we are seeing is the recovery play is coming back and that is congruence with the idea that -- if yields are rising in response to approving -- an improving economy, the marketers ok with that. >> i comes to china, you say this is a situation with evergrande where they can just throw money at the problem. if left to local governments, it is not a systemic asked -- systemic issue. pboc is not worried. >> it is one third less real estate is one third of the chinese economy and it is the elephant in the room. i am reminded of the global crisis. i am reminded that business week a cover story about subprime loans back in september 20 -- 2006.

that header was "deceptive loans , the coming wave of defaults. -- defaults." the crisis it not happen until 2008 i was reminded of 2007 when ben bernanke said from the standpoint of the overall economy, subprime mortgages were contained. that is the issue with these elephants in the room. there could be a crisis, but the timing of it is impossible to predict, just like businessweek was two years too early. >> for a medic am i thought you were going to say this is just like lehman. the question of the day is, domestic activity indicators, the weakness in retail sales in particular in the broader gdp, how does that potentially impact their performance of various assets? >> china is one third of global

growth. what we are seeing now is -- by the way, i have to give credit where it is due, there was an article on the leading political theorist in china. in the palladium magazine last week. it is being sent around come i have received from lots of friends. the idea is that they are trying to rewrite the social contract in the country between the billionaires and the commonest party and a few -- the communist party. and away. anytime you are trying to rewrite a social contract, that is a big deal. i think it is moving toward more paternalistic style of society and economy, which by default means less laissez-faire, less of the hyper capitalism of the

previous 20 years, therefore lower economic growth. >> he is the man behind common prosperity and a lot of these other slogans that have gained popularity in china. where does that leave the middle class? where does that leave the chinese consumer? >> in a good place. the old saying, when in rome, do as the romans do. common prosperity means -- i think it will become a nicer place to live. it will be greener, cleaner, less of a rat race. [laughter] it will also have a bigger middle class so we can invest in mass consumption as a proxy for that. that is not going to have the kind of returns on equity that the consumer technology giants have had over the last decade, which are unprecedented. the returns will be lower, but

they will be there nonetheless. invest in the middle class in china. >> great to have you with us mark matthews, head of asia research. next, jd logistics look into get a bigger share the cargo market. you can hear more of our conversation with the ceo coming up next. this is bloomberg. ♪

>> cargo jammed at seaports, comedies are turning to a airfreight. airlines are struggling to absorb the backlog. jd.com's logistics arm is planning to build its own phase of aircraft. jd logistics ceo yu rui speaking

exclusively with berber -- with bloomberg. >> covid has heavily impacted the global supply chain industry. many companies have encountered difficulties during the pandemic. we have seen the shortage of resources in shipping and airfreight. we believe it is short-term, but for the long-term, global trade flows will return to normal. we are preparing to set up our own airfreight cargo company, which was recently approved by authorities. >> the service you are talking about for jd logistics, would you biplanes and operate those planes? >> yes. we purchased planes -- or, at least them. the cargo plane operation should comply with regulations. in the future, we might own airfreight companies and other

countries. we might own our own planes so cargo businesses can comply with local law and regulation. >> how many planes do think you will need? >> by 2030, i would say it won't be less than 100. >> do you have a priority in terms of markets? >> in north america and europe, we will invest massively in warehouse and high-tech automated logistics centers in the next two years. we can provide more support for chinese sellers who want to do business abroad. china is the world's largest consumer, has great demand for products overseas. >> you said you were interested in forming partnerships with foreign logistics companies dell be better serve your clients. would you consider doing m&a outside of china in terms of

logistics companies? or investing in foreign logistics companies? >> jd logistics has been open to acquisitions. when the opportunity is right, we won't rule out the possibilities. >> i wanted to ask you about the broader economy. jd logistics, you deliver not only for jd.com, but lots of other e-commerce companies in china. you have a great sense of how consumption is in china. from your perspective, what is the state of china's economy? how strong or weak is it? >> when it comes to the broader economy over the last year to be you can't avoid the impact by covid. china's economy has showed its recovery during the pandemic. economic activity has returned to normal. when we do business with our clients, we can feel that business has returned to normal growth. we have confidence in the

markets. >> revenues in the first half grew by a healthy clip of 53.7%. in the second half, how has -- how is that growth looking? similar pace? >> we hope you will maintain good revenue growth in the second half of the year. business growth in the first half, we provided services to more clients. in the second half, we usually see business peeking for the retail industry. hopefully, we will have better performance in revenue. >> when you talk about the strategy going forward, it is not always going to be growth being the focus as opposed to profitability. when you thicken about when to change that strategy, what are the factors you would titter when you determine when you should switch priorities away from -- toward profitability? >> our business strategy is focused on an integrated supply

chain per that market is worth $311 billion in 2020. an annual growth rate of 9.5%. you will be able to hit -- in 2025. jd logistics is already the top player in the market but we only have a 2.7% market share. we will prioritize our revenue growth. >> jd logistics ceo yu rui speaking exclusively with bloomberg. the naval air forces battering china's economy are expected to show off in a sharp slowdown in the nation's third to gdp growth. bloomberg editor kathleen hays this year with the preview. how much of a slowdown are we expecting? >> pretty marked. not to a rate that is recessionary, but lower than it was in the previous quarter.

it is a multiple whammy of hits to china's economy that are causing this because you might expect slowdown after rapid growth, but look at the list. you've got a consumer not spending as much, very cautious because the virus surge. energy crunch a lack of call. energy prices. that is filtering through the economy. supply chain slowdown is sitting china just like the rest the world. now fintech companies and evergrande is an meltdown. 5% in the third quarter, down from 7.9% in the second quarter. when you look at the chart, you can see the range of forecasts is from 4.5% to 5.8%. still fairly contained, but definitely a slowdown. specifically when you look at russia's slowdown, it is higher.

sales are going to be stronger. that is good. fixed investments, expected to slow down marginally because property developers are afraid to make any kind of developments when there is so much uncertainty >> -- and certainly. >> we heard from -- was confident evergrande would not be translating. >> he did say there was concerned being raised. so far, he thinks these risks can be contained. here's what he said at the g 30 international thinking congress. >> i think overall, we can contain the evergrande risk. first, we try to prevent the -- from evergrande to other real estate companies. second, as they try to contain the risk for financial sector. >> as an attendee at this g 30

conference, i was determined to get that answer. he also said that in terms of continue risk, it is spread across hundreds of chinese banks. he did say the pboc intends to respect the rights of creditors, shareholders, as they would do under law. he wants to protect consumers and homeowners. there are questions if evergrande will be able to build those homes and get them to people who have already paid. it is interesting in terms of -- i think we can avoid systemic risk. it is not just a company. it is not just take company, it is an industry. it is interesting that mark matthews said it reminded him that you look like a 2007 when ben bernanke was head of the fed said, the risks are contained in

those mortgage backed securities markets. he is raising the same question. we do not know what is going to happen. the risk is there. >> kathleen hays. let's get to our opinion column. -- sending two messages. no bailouts, and it is time to pay her. she joins us from hong kong. what are we hearing? what are you translating from -- here? >> he said that evergrande's risk is obtainable. outside the conference, they said evergrande is controllable in china. these are codewords for no bailouts. investors who had hopes for bailout of were disappointed. interestingly, pboc sent a second message saying the main shareholders need to fulfill their obligations. that is basically telling them to pay up.

if you look at the october selloff, that high-yield dollar bond market the biggest selloff in over a decade, at some point, the balance was yielding as much as 20%. xixi what happened was not because of evergrande, this already quite well understood, but the small developer called fantasia. it is rate 64 in china. nobody cared about them and taught tober. fantasia had the money to pay, or was given the impression to pay, but first they said i am not going to pay that $600 million bond. that freak to the markets out because there were like oh, i guess some people are not willing to pay. fantasia's founder might be a little spoiled because she is the niece of a former vice-chairman of china, but what she did was she opened pandora's box. selloff the balance and i will

buy you back on $.50 -- at $.50 on the dollar, that is sandra's >> >> you're calling them runaway brides. let's talk about fantasia and others like them. they are issuing dollar bonds offshore that pboc's. the onshore regulator says, limit with the bank can do. >> the central bank -- people will listen. your operations are still in mainland china. the central bank has incentive to make sure developed markets open. the ministry of finance is coming to market. we have had over $100 billion balance to buy the -- to keep the bond market open. >> great having your insides. great column. plenty more to come when daybreak: asia returns. this is bloomberg. ♪

shery: we are watching entertainment stocks trading at the moment after bloomberg learned that at --netflix is estimating that "squid game" will create $900 million in value.

haidi: trade numbers out of singapore for the month of september. year on year number coming and. 12.3 percent gains versus expectations of 8% and bouncing back from 2.7% in august. seasonally adjusted, that month on month number is a little muted. 1.2% lower than expectations. coming back from that contraction of 3.6%. when it comes to that breakdown, sigh 14.5% gain when it comes to

shipments of electronics. some pharmaceuticals, a volatile element of that breakdown up 27%. petrochemicals giving the energy crunch action we have seen. close to 53% year on year. when it comes to some of these breakdowns of the products in particular, we are seeing that strength would it comes to petrochemicals as well as former exports as well. speaking of singapore, australia is in talks with singapore for a travel bubble that will allow fully vaccinated visitors without quarantining. we know that they have opened up these travel lanes with a bunch of other countries. how quickly could we see as being included? reporter: we don't have a date yet but the health minister said in interviews that this was in rapid development they're working on this now. they had a meeting with the singaporean counterpart on friday. this green light they are looking to establish very

quickly. there was a sense of urgency because the vaccination rate is approaching 70%. in new south wales, it is 80%. international vaccine passport will be rolled out in australia from tomorrow that will include all the details. the passport number vaccination history and a qr code as well. the government is moving to reassure people about the security of the vaccine certificate saying that the data on that will be as secure as the data on the chip on your passport. shery: at the moment, these plans applied to fully vaccinated australians. will they also apply to skill workers and tourists? reporter: we got very excited in new south wales on friday when the premier announced that it will be open from member the first fully vaccinated. the prime minister clarified that swiftly. it will just be australian citizens and residents able to leave the country and return.

we got more clarity from the health minister on this as well. that is just the first step. the second will be welcoming skilled workers and their priority visa holders and students back into the country next. after that, to open to international tourists again. we heard from the trade and tourists minister just this morning when he was speaking to local media, he wanted tourists back here by the end of the year. the intention is to move quickly on this. shery: let us get to vonnie quinn with the first word headlines. vonnie: new zealand's inflation jumped more than expected in the third quarter to the fastest rates in 10 years. reinforcing sentiments that they will raise interest rates. annual inflation rate surged to 4.9% from the previous period. they want to keep it at a 1%-3% target bound.

pboc governors that authorities can contain risks to the chinese economy and financial systems from the ever grand crisis. the cash crotch at ever grand is spilling over to other developers as the president maintains a strict measures to cool the property markets. he told a virtual g3 meaning that -- g 30 meaning that risks can be curbed. >> overall, we can contain the ever grand risks. we can prevent the contagion from ever grand to other real estate companies. we tried to contain the risk for the financial sector. vonnie: the japanese prime minister mid and offering to the controversial war's dashboard shrine angering china and south korea. he donated religious ornaments to mark the shrine's autumn festival.

it honors millions war dead including 14 men convicted of class a war criminals after world war ii. hong kong listing market is going through a dry patch and what is normally the busiest part of the year. several billion ipos left their applications lapse. they include the supermarket owner and health care start up we doctor. the value of these ipos dipped to 6.2 billion dollars behind south korea for the first time in four years. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: let us get you a check of the markets. sophie is in hong kong. sophie: taking a look under the hood, tech stocks are under pressure. check out china's benchmark yield about 3% for the first time since july. after we got that faster than

expected ppi, you have the 10 year yields trading the the 19 high, adding 13 basis points. we could see a 50 basis point next month. in the commodities patch, they're pushing up 85 amid the energy shortage which is looking for metals like zinc which is pushing names like korea zinc to higher -- stock is going to a record high. it has ridden to a june 2007 high in london for zinc. on the other side of the spectrum, gold miners are under pressure. evolution is the biggest laggard in this index. check out what's on in tokyo. this as analysts like citigroup saying their target cut forward november is a sign that bad news is drying up for suppliers. shery: we are watching towards the opening of hong kong. they are starting future

contracts the make it easier for international investors to bet on mainland chinese stocks, intensifying rivalry between the hkex and it singapore counterpart. let us get more from our reporter. what are analysts saying about the prospects for their contracts to gain traction? reporter: it is an exciting day. singapore has had a monopoly on this market. since 2006, when their products were launched which is the biggest site launching this today. analysts think it will take a while for the product to gain traction. a few years. eventually, there will be some meaningful contributions to hong kong's revenue by 2025. haidi: are there any concerns? reporter: yeah. i think the biggest concern that analysts have pointed out is the underlying index which is

constructed by nfci. using the number of metals to bounce it out. give them more diversified exposure. while it is diversified, it scans as well as higher external over it. that will lead to higher rating costs and uses for clients that are using the futures contract. that is perhaps the biggest concern. on top of that, singapore has fewer holidays than hong kong does. it also has a more better established derivatives ecosystem which is better liquidity. these are the main concerns as we head into trading for hong kong. shery: we saw the singapore stocks slump on the news of hong kong. our investors worried? should singapore be worried about the competition? reporter: sure. these contribute about 13% of revenue. these are estimates for

singapore exchange. hence, the big slump in the stock when hong kong announced their product. it is direct competition. that is definitely concern at this point, considering how big the exchanges about how much it can lead into singapore's revenue. the exchange seems pretty come to bow. they are wary of the competition but getting countable in the product because it is very similar to what hong kong has launched. they are comfortable that we will see them at this point. haidi: we will be speaking with the hkex group cohead of markets in the next hour about how this will play out in this market. coming up next, gdp numbers in china do in an hour. we will review that data with goldman sachs economist. this is bloomberg. ♪

>> when we do business with our clients, we can feel that the business has returned to normal growth. we have confidence with the market. shery: quick check of the latest business flash headlines. facebook will create 10,000 new

high skill positions in europe within the next five years as part of efforts to develop a meta-verse. target markets include several countries in the eu with the u.k. being left out of the plan. facebook has pushed the meta-verse well -- where you will just logon but live, work, and play inside the digital world. apple is unveiling the first redesign of this map book bro in 5 -- macbook pro in five years. there will be a magnetic charger, rebound display an hdmi port which was removed in the last design. there will also be the first and mike -- macbook 02 replace the chips with play apple. it worked great backlog of properties in this line. they bought 3800 houses after ramping up the ibio business

allowing homeowners to request an offer from algorithm calculated price. they buy the property, makes repairs and put it back on the market. tencent -- elon musk made a appearance at a volkswagen conference and said they will master the move to electric vehicles. they told executives that tesla is more agile than other carmakers because he is an engineer fascinated with the production process. vw ceo said their handling of the global chip shortage was impressive. haidi: we're looking at life pictures of the hong kong exchange at the launch of their index futures at the moment. we will hear from their ceo as well as the chairman and ceo of the other and will be speaking during the ceremony. at the moment, we are seeing the

hk dx chairman on stage at the moment. -- hkex. they will talk about this new product as well as their other derivative products and how they will be replaced within this market. staying with china. they are counting the cost of multiple hits to its economy from a crackdown under property market to an energy crunch and so on. economists a golden -- goldman sacs will no longer cut the amount of catch -- cash. let us bring in chief economist at goldman sachs. let us start with the gdp expectations. we know the retail peas has been quite weak. do you expect to see the deleveraging campaign and all the chaos really plugging the property sector to be reflected in those numbers. ? guest: those numbers to look

pretty soft. there are some mixed crosscurrents at the property sector, you mention it looks very weak in the last couple of months there should be one softer spot in the economy. we saw a week manufacturing pmi for september. on the other hand, we are seeing a reduction in covid related restrictions which would help retail sales on the margin. exports of held up quite well. haidi: when it comes to the longer term drive on growth, not much of a structural war is going on with the broader property market and myriad industries in some sectors affected by and not to mention, the overall wealth effect? guest: it is a big, big driver of economic growth over the past few decades. we estimate that it will go over

the residential sector and upstream industries. drive close to a quarter of economic activity. if you look out over the next 5-10 years. the demographic suggests a declining demand for new property. the biggest constraint is the supply-side constraint around credit. the credit pressures and developers and the restrictions for banks, mortgage lending to household. those things, we think are the biggest factors in the next 12 months. beyond that, there will be the demographics in the command that are the final constraints on housing. we are likely to see a smaller contribution and sometimes a negative contribution from the broader property sector going forward. shery: will those be self-determined constraints.

? goldman sachs is saying you no longer expect them to cut the rrr this year. guest: self composed -- impose constraints is a good way to put it in the short runs -- short run, these are something determined by the authorities they want to reduce leverage and the property sector and longer-term risks even it -- at the cost of lower economic growth. they could calibrate that and ease up somewhat as needed. the pboc press conference that you referred to at the beginning was one way of acknowledging that they have eased up a little. on the mortgage lending and property lending to maintain some stability in this sector. from that perspective, they are adjusting. the broader message is that they

remain determined to control longer-term risks and bring down the level of leverage and the sector. in that context, the comments about rrr are slightly less dovish in the sense that they can provide liquidity in multiple ways that a rrr cut could be perceivs the most dovish of those. they are deciding to do so the other tools that don't necessarily lowered the cost of lowering the funding banks. shery: what are the implications for the global economy. ? guest: the clearest thing we have seen in terms of spillovers from the property sector have been in the commodity market. particularly, in iron or over the last couple months. that said, property is more domestic sector than many others. a lot of the implications will be for china's economy. there will be some spillover

effects in terms of imported materials and equipment. less so than you might see after a dramatic downturn in other parts of the economy. from that perspective, the bigger question is whether authorities can contain the fallout from the ever grant situation and the property sector and limit the spillovers to other parts of the chinese economy. if they can do that, and keep growth in the 5%-6% range, the spillovers will be limited but if we see a more severe property downturn that spills over into the broader chinese economy, the ramifications for global growth can be more severe. shery: good to have you with us. with his views on the chinese economic growth. a dystopian game of life and death proves the worldwide winner for netflix. details on how much the show might be worth to the streaming

giant up ahead. this is bloomberg. ♪

shery: let us turn to the latest megahit on netflix. the korean show "squid game."

it will create almost $900 million in value for the company. we are joined with the latest. this really shows the windfall possible from just one single show. anchor: a draw -- jaw-dropping number. numbers show that 130 million people have watched this show just in the month since it debuted. there is a figures show that netflix believes it is generating more than almost 900 million in impact value. that is a metric they used to assess the performance from an individual show. you're looking at the trailer from the show. it is a south korean show compared to the movie series " hunger games" of people in extreme debt signing up for child games that ends up being a deadly contest. if you lose, you die and you are in a cash prize.

it cost them one million to produce. you marry that with the extreme popularity and the relatively low cost makes it one of the most profitable shows. it has generated a huge windfall. that is what is eye-opening. netflix released selected viewership metrics for a handful of its shows, movies. it does not share its detailed metrics. an attorney representing netflix tells bloomberg that netflix does not discuss these metrics outside the company and takes significant steps to protect them from disclosure. that said, viewership details are likely to really encourage investors who would regain enthusiasm for the streaming service. just after several bumpy months. the stock has surged nearly 7% since mid-september. that is when skid -- squid game --"squid game" hit the tape. it will lift the performances or forecast for the fourth quarter if not both.

this has been a shot in the arm for the stock and many say for the company itself. haidi: netflix is kicking off tech earnings this week as well. anchor: netflix and tesla. they will report on the 19th. tesla is the day after. as for netflix, many of us believe they have entered a favorable set up with both "squid game" and a seinfeld launch. netflix was seen as having a weak first quarter. it was the worst kick off of a year in the past five years. these earnings and their report of viewership really could ba way to catapult this stock, forward many analysts say. for tesla, they need more than a blowout stock -- quarter to energize the stock. it slid a bit since 2020. going from the best-performing large-cap in 2022 the biggest laggard in the s&p 500. part of that has to do with the

missteps and launching in asia although, that has all smooth out. any analysts say there will be some interesting remarks about bitcoin which is outperformed tesla stock. not surprised. back to you. haidi: preview of the tech earnings. we are just getting some breaking news. goldman sachs is going to take full ownership of its chinese joint venture that received approval to get 100% ownership of a security venture. it does pave the way for an aggressive expansion and the chinese market. clearly, a lucrative one for goldman sachs and its peers. that approval coming from the regulatory commission. could mark the start for our china business following their 17 year joint venture according to goldman sachs. an internal memo seen by bloomberg news and subsequently confirmed by a goldman spokesperson. we see them continuing to double

down when it comes to the chinese market. they got in approval for a wealth joint venture in china as well. let us get you the stocks we're watching this hour. sophie? sophie: keeping an eye of the shareholders here in hong kong, they have outpaced their singapore arrival over the past year. this leading into a shares derivative trading. goldman capping a 5% boost to the revenues by 2025. they expect a limited earnings upside in the near term but they will post a bigger earnings downside risk to the singapore exchange. shery: let's take a look at the yield space. we are seeing that global bond selloff continue. u.s. treasury market over the point spread falling below that 19 point basis level and lowest since may 2020. we see the momentum in favor of that flat near.

the 10 year government yields rising to 3% for the first time since july. we have those numbers out of new zealand. jumping at the fastest in 10 years. sending kiwi yields much higher. we have the bloomberg markets china open next. this is bloomberg.

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yvonne: 9 a.m. in beijing and shanghai. welcome to "bloomberg markets china open." we are counting down the opening in mainland china and hong kong. their gdp numbers reveal the cost of ranging from all sides of property crackdown all the way to that energy crunch. monthly activity data coming out as well. he boc government sank -- pboc governor say they can contain