involvement? cathie: cathie: our first move away from china was when china had a very strong move. that was that kind of move. the second time we moved -- then we moved in, why? we saw the reaction to covid, and we got more interested. it was the most disciplined country in terms of monetary and fiscal policy during the crisis, and i thought, china has the possibility of becoming the germany and switzerland of the world in terms of discipline monetary systems. as soon jack ma was banished last november, we started pulling back, and especially during february through may, our

strategy, to give you a sense of how volatile it is, our strategy from february to mid may was down 37%, peak to trough, so we have come back, but during that period, we concentrated our portfolio towards our highest conviction names. china was moving away. almost every week or month, there was another regulatory move or crackdown. it was easy to do that. i am always scrambling, looking for cash and a correction. where is the confidence lower? common prosperity, so what have we done? no china in our flagship. we do own some china and a few of our portfolios -- in a few of

our portfolios, those focused on autonomous technology and robotics, but we are very particular. margin is clearly not appreciated by the government anymore. very beneficial to tears three or tier four -- tier three or tier four cities. carol: kennett stay this way in china? china, when they make a decision, it is longer-term planning, and president xi seems to be on this mission. cathie: i think he is very unsettled that the child policy is not working. this is all very for castable. they knew 50 years ago what was going to happen, so i think that is part of it, and there are the

haves in the have nots in china. i think china is taking it more seriously because there is more social unrest than we appreciate. they are going after real estate, which is 75% of consumer savings in china. carol: individuals in china. cathie: individual saving. if the prices are going down, which they have been, i think that could hurt consumer confidence. it already is. last weekend, the national government went after the regulators, regulators who focused on the financial industry. i said, they are playing with fire, and talk about a cyclical risky echo think about that, if

we lose china. china has been responsible for a tremendous amount of cyclical growth. carol: it's been an m&a panel, and one analyst brought up geopolitical in terms of military tension. so the future, it's in florida. how come? [laughter] cathie: most people would tell you there are tax considerations. that's part of it, of course. however, we were looking for a city that might be able to evolve into something like austin the has. if you have not been to saint pete, you must go. i've become saint pete's official ambassador. carol: who has been to st. peter? fair enough. cathie: all my life, i said,

i'll never live in florida. i went to saint pete. it's a vibrant town focused on culture, art, music, a lot of tourism, very clean, very lovely , friendly people from all over the place, and i think we could have something like a south by southwest in the saint pete and tampa region. jeff branick and the bill and melinda gates foundation have brought tampa to life. those who are interested in pursuing portfolio management track will have to be in saint pete, but we have a hybrid working environment. our director of research has always worked in l.a.

we have other analysts in california, chicago. it has worked for us. as i said before, we work together, and i think going through the downturn in the market, probably being together would've been better, but it made us work harder at overcoming the lack of closeness. carol: one of the things i do love talking with you is where your mind is going. you've been buying something like pfizer. i don't think of pfizer with the infrastructure and legacy of it. cathie: we think one of the most interesting opportunities out there that is in the value space is biotech and maybe some pharma. those companies we see erasing the convergence between dna

sequencing, artificial intelligence and chris purging editing -- crispr jean editing, we are very interested in. we believe with artificial intelligence, trial failures will reduce. there will be a reduction by 25%. the time-to-market could be 25% less, so we could go back to the golden age. not every company is embracing these. pfizer, with some of its moves into editing, it is interesting. carol: what is the moonshot? talking about longevity and technology and different types of technology out there, what is the tesla of tomorrow?

what is the apple of tomorrow? what is it in terms of general technology? cathie: i do think the genomic space because you have health care analysts who have not historically liked technology and technology analysts who didn't want to get into health care -- we've got this convergence taking place. we have set up our team by technologies. we have three genome analysts. we've got them very specialized other technologies, and they are looking at how these technologies will cut across sectors. the cost savings will be

phenomenal. carol: it feels like one space that has been stagnant. cathie: i will throw out a number. it is fresh and subject to division, but we were assuming that in the next 10 years, artificial intelligence would deliver in the enterprise software space a market cap opportunity of $30 trillion. from tens of billions today. our new number is $80 trillion. we think that is the frontier, but it is going to be in transportation, autonomous trucks and so forth. it is in genomics, so it is going to make these platforms come alive much faster than we thought was possible.

this $30 trillion was a two-year number. carol: last question, a likely celebrity fund manager. what do you make of the copycats? it seems like there are your traditional wall street firms and index fund managers, and they've got a disruptive strategy. does that give you vindication, or do you not want the competition? cathie: we definitely welcome the competition. i think there is a massive misallocation of capital. the more the u.s. keeps its competitive advantage, and the world solves problems, and the world becomes a better place. if they have not set up their research departments in the way i just described, i don't think

they are really competing with us the way we are doing it. carol: you do it differently. cathie: we do. we do it differently, and there are more ways to do this than just the way we are doing it. i think the depth to which our analysts go into these technologies has never been done on wall street before. that is because we set up the firm to do that. carol: thank you. thank you so much. [applause] >> cathie wood speaking to carol massar in los angeles. we like to welcome our viewers to "daybreak australia." we are seeing u.s. futures muted at the open since we saw the s&p 500 gain from consecutive sessions.

solid corporate results taking u.s. stocks half of 1% away from an all-time high. we see the china index at a five week high. the 10-year yield, gaining ground. wti gaining ground. a little bit of volatility given that russia signaling it may not give europe more gas without approval for the controversial pipeline. it was a big day for the crypto industry. we saw it finish that session at that level. bitcoin, close to that all-time high from back in april. we are $700 away or so from the high. it seems inflation concerns has

drawn investors' attention. with the focus on earnings, we are shifting away from those concerns. we are seeing the shift from financial results to consumers, staples, bellwethers with sentiment in the market. in the market.

shery:shery: we will start with you and the earnings call. as haidi mentioned, it might as well be the "squid game" earnings results. one show making a huge difference. >> this was a near-perfect trend for the company. as you mentioned, "squid game" was a big part of that story, and in the guidance for 4q, although some may argue that the forecast was a bit tame,

considering the massive phenomenon that "squid game" has been, we know the content has strengthened. it is pretty solid when it comes to 4q, but i think there are lingering doubts about what the longer-term outlook is and what those normalized levels of subscriber additions are going to look like. haidi: speaking of the zeitgeist,, it even has some doubters. take a listen to scott minerd. scott: bitcoin it is very difficult. you end up, you have to be something tradable like an etf. haidi: a watershed moment for the crypto industry. su: no question. whether you have an issue with the value of bitcoin, you can't

argue with demand. let's drop into the bloomberg. it was the debut for bitcoin proshares. more than 24 million shares changed hands. what we are talking about on these numbers is the second-highest traded fund ever in terms of demand. we could be looking at the highest demand ever for a debut etf. we may not know the total net flows in or out for 24 hours. i think we have an animation for you. many investors have been searching for ways to get greater exposure, and a bitcoin etf has been long awaited by the bitcoin bulls and investors on wall street, many who argued this kind of etf would open up

digital currencies to mainstream investors. the past five days, it shot up to a near record. some argue you are moving away from what people want. back to you. shery: we are watching all of those concerns about china's credit market, beijing current -- pressing on with the dollar sale. david: demand for the sovereign issuances from china has been strong since china returned to the dollar bond market after a 13-year hiatus. we were just talking about "squid game." they are giving the red light -- green light to this bond sale, 3, 5, 10 years. it's worth noting a year ago when they tapped the dollar bond

market, it was a $6 billion effort. because of the high-yield bond troubles seen at evergrande and the contagion that has sent shot wakes -- shockwaves through the market, demand has been a for these sovereign issuances. they are investment. a little bit pulled back at $4 billion instead of $6 billion a year ago. while we are talking about evergrande, reuters is reporting that its main domestic unit has remit the funds that they needed to pay on the 128 point million eight you on bond coupon the, 19 million u.s. dollars, that according to 4 people.

evergrande has missed the dollar payments come due as of late. haidi: keeping track of that repayment schedule, and geetha with the latest on netflix earnings. amid the angst over china's property market, the debate continues over how policymakers are likely to respond. what are you watching? >> targeted measures are anticipated with low crime rates. when it comes to a triple cut, -- rrr cut, that remains to be seen. they are expecting an easing of policy rates in the face of slowing growth. switching out the chart as china's domestic demand has moderated. it's expected to show the impact of the higher commodity prices

that we have been seeing, so japan will likely foot a bigger import bill. the consensus is for a trade deficit of 4.6 billion dollars for september. higher commodities have inflation risks top of mind. in australia, we've seen repricing, tightening earlier than the central bank expected, and that is testing its april yield curve control. they expect the bank will intervene, and if they don't, that will signal a change in guidance. j.p. morgan said the market is getting ahead of itself. as we've seen from corporate australia, they are flagging risks around higher costs, seeing a risk from logistic costs being ever higher. sophie: those disruptions and -- shery: those disruptions and

inflation concerns. let's bring in the ceo. you are still bullish on u.s. stocks. we have a heavy weighted tech stocks, which have led to valuation concerns. >> we believe the large tech stocks are poised for some growth. when you look at historically the performance of tech, as soon as that big tech stock announces. i am counting facebook, amazon, google, microsoft and apple, which is on monday, those markets historically speaking have pushed higher after the first one announces.

shery: we continue to see yields rallying with the 10 year up above 160. how do you position for rising rates? >> we are fairly confident we should test the high we saw earlier in the year. if you are a bond investor, that's not the greatest outlook for you. we like the high-yield market in this situation. if you have to pick where to be in the high-yield, we start to stick more towards the shorter duration for safety. it has a higher correlation to the stock market than most other bond assets to, but if you need to be somewhere, we think

high-yield is the place to go. haidi: if you are willing to take more risk, if you are feeling super confident, where would you be finding those opportunities? >> there's a couple. look at the vix. a little bit of movement after the close. in the scenario, use the vicks, use the lower price to hedge and as a way to have confidence. we are long-term investors by nature. the advice we give to investors is, don't try to time the market, but do it with a hedge so you don't experience the brunt of a potential market breakdown. it gives us confidence to stay in the u.s. large caps. haidi: you like commodities as a

balancing factor. would you want to get more into the specifics? shery: we are more about an etf. -- >> we are more about an etf. where do you go if you have declining gdp and if your hedges are not tight enough. we do look at certain etf's, not just straight up energy, ones that cover everything out there. we are an options firm. we like commodities as a diversified agent. the easy trade a has been in. the markets have told you the appreciation of commodities that there is a lien towards that. if you are going to look for diversification, create exposure to the different asset classes, and hedge if you can.

haidi: if you think commodities will continue to gain ground, wouldn't you like some of those with mainland russia? why? >> it goes back to interest rates. while they have dollar-denominated holdings, as the rates go higher, it becomes more expensive for those emerging markets to pay back their debt. we are staying back from emerging markets because of our rising interest rate environment. the other thing is, i think there is a higher chance or larger tendency for covid to impact those economies. i know we are getting over talking about it, but we don't think the u.s. has a shutdown in any near future. some other countries may do that . stay away from shutdown risk, interest rate risk in emerging markets.

haidi: there is a lot of risk when it comes to the near term. december has a lot of risk. are you assuming markets will not go down if earnings season meets expectations? is it going to be hard to find meaningful upside? >> the u.s. market is, while we have had some declining gdp forecasts, the u.s. market is poised for appreciation in my opinion. one, demand remains high. we have inflation numbers that have been ticking up. we don't know if it is demand driven or supply driven. the second reason is investors are flush with cash. it's the lowest amount of debt being carried by consumers in 40 years. we think it will be a strong holiday season. haidi: great to have you with us.

we have lots more to come here on "daybreak australia." this is bloomberg. ♪ this halloween, xfinity rewards is offering up some spooky-good perks. like the chance to win a universal parks & resorts trip to hollywood or orlando to attend halloween horror nights. or xfinity rewards members, get the inside scoop on halloween kills. just say "watch with" into your voice remote for an exclusive live stream with jamie lee curtis. a q&a with me! join for free on the xfinity app. our thanks your rewards.

♪ >> netflix says 142 million households around the world watched the breakout south korean hit. it helped them beat estimates when it comes to subscriber growth. it is incredible that this one show captured the cultural zeitgeist. what do things look like going forward?

>> i thought "squid game" was almost like catching lightning in a bottle. we knew coming into this there could be upside surprise, 3.5 million global additions. what "squid game" did was create some unexpected catalyst. the q4 guidance really positions netflix to address some of the doubts coming off the first half, which was relatively weak. going forward, he's positioned well to gain this momentum. haidi: they've said it is almost impossible to have certainty

about what the future looks like when you've been through something like the pandemic. do you think it will push them to more growth? >> absolutely. one of the positive takeaways is how the content pipeline has come back full speed. i think we will see more evidence of that in q4 with "seinfeld" and others coming into the equation. netflix is becoming more proactive in terms of the content it puts out there. some of these metrics, customer engagement, retention, they will start breaking that out for some of their shows.

it's an increasingly crowded field of competitors. haidi: how does netflix is earning results today bode for competitors? >> we heard them suggest the december quarter was going to be a significant slowdown. a lot of investors were a little spooked by that. we're going to see major volatility depending on the title. it's a very short-term dynamic where people can sign on and watch the shows they like, etc. there's always the constant pressure to make sure your content is compelling did.

talking about "squid game," the timing couldn't be more fortuitous to them now that they are formulating their videogame strategy. haidi: tell us a little bit about that strategy. what does this tell us, especially the acquisition of night school, about where netflix is headed? >> tells us the company is becoming more assertive in their videogame strategy. it is not something we expect to move the needle initially, but it will make the offer much more compelling. they talked about using mobile as a jumping off point. more importantly, looking at ancillary opportunities. you heard about the collaboration with walmart.

a lot of these initiatives have been a long time coming. it makes sense, more consumer touch points, if you will. haidi: when it comes to subscriber growth, is it concerning it has still slowed in their home country? > it was something we expected. the u.s. and canada showed some relative saturation. that being said, the u.s. is leading the rest of the world. that is where the bulk of the revenue is coming from. this quarter, made up half of the subscriber additions.

the dynamics of international deals are changing for the better, especially asia-pacific, to some extent latin america, and europe, as well, where the penetration level for broadband is relatively low compared to the u.s. if i can point to one, it is the u.s. market saturation. haidi: thank you, tuna, always great to have you with us. let's give you the latest on micron. the chipmaker is to invest in japan. this is particularly interesting given that we have seen a re-rating for micron, the stock falling because of concerns we have seen a peak when it comes to memory pricing.

micron, of course, is a giant in the field. they are responsible for 25% of global revenue, making further investments according to this report of ¥800 billion in japan. vonnie: good morning. china is studying ways to intervene in the coal markets. the country's top economic planner the ndc will take a zero tolerance approach to patrol the market. china has been seeking to curtail the fuel rally for months with little results. singapore is taking steps to secure its energy security. it is setting up standby fuel facilities from which generators control additional reserves.

the government is urging consumers to conserve power and warning of rising bills. it said suppliers may be forced to exit the market. morgan stanley says spacex, not tesla, will lift elon musk 2 trillion air status. morgan stanley has a $200 million -- the international atomic energy agency chief says he will visit iran in the coming days, this as the u.s. and europe seek to jumpstart talks on reviving the nuclear deal. he hopes to meet senior leadership to discuss nuclear inspections. he describes the situation as

fragile since tehran ramped up its uranium enrichment. a washington mansion linked to oleg dara posco -- the aluminum tycoon and his companies were targeted by treasury department sanctions in 2018. at the time, he was forced to relinquish power. a dara posco spokeswoman said they are owned by family members. mobile news 24 hours a day on air powered by more than 2700 analysts in more than 2700 countries. this is bloomberg. haidi: he points to significant excess in valuations and the availability of cash. he spoke at the milken institute global conference about what he

wants the fed and treasury to do. > the question is whether we will normalize, and will the fed or treasury take their hands off the economy and run itself, or will they continue to drive it? i think i would like to see an economy that did its thing uncontrolled by the fed. i would like to see naturally occurring interest rates. we agree that the free market is the best allocator of resources. >> what is the balance between a free market and governmental necessity during a recession? >> the actions that the fed took last year had some serious negative consequences, the worst of which could still be a strong

bout of inflation and igniting of inflationary expectations. that is a very negative possibility. on the other hand, you can't argue those actions should not have been taken. i think we would be in a serious global depression right now. haidi: howard marks speaking with romaine bostick at the milken institute global conference. up next, china looks to intervene in the cold market amid surging prices, vowing zero tolerance, but will it be enough to ease the crunch? this is bloomberg. ♪

>> china is on investable. the republic of china is throwing a bond issue, 30 years at 2.6%? if you want to tiger money up in china for the next 30 years, i encourage you to get out there and do it. >> people have said on investable for the last 20 years. we are not focused on the consumer. we realize that data and the privacy issues involved in consumer data and the population

data is an issue for every country in the world. >> we just hit financing in london where the sponsor was chinese, and i think more alarm about what is going on in the property market caused it to be an extraordinarily great opportunity with low risk and high yield. shery: some big names weighing in on china's invest ability. they see liquidity support coming through on the mainland. when it looks to how to play this bull case, jp morgan's team is favoring some semi conductor names and mega cap players. as for what to avoid, they say financials should be in that bucket, and the consumer

discretionary sector. shery: taking a look at commodity assets, we are seeing a breather after that relentless rally we've seen in the past few months. nat gas under pressure, but this after spiking when we had some volatility given that russia may not give extra gas without the approval of that controversial pipeline. we are seeing coal at the moment at the 1700 level. we are hearing the rise in prices leading policymakers to rein in those prices. london copper, we saw it above 10,000. some levels we haven't seen for some time, $1100 a ton.

we are also watching aluminum futures. in china, a key hub said they would raise fees up to 50%. haidi: let's get more from david stringer. coal intervention from china. what are we expecting? >> a pretty significant step. we've seen previous attempts from authorities to clamp down on the price rallies we've seen. this latest raft of measures already looks to be having an impact. that brought to an end this extraordinary rally. we've had seven consecutive games. futures fell last night, and we

are expecting to see further declines later today. we heard overnight from the top economic planning agency, coal is going to have priority. they are focused on getting more coal out of the ground and getting where it needs to be to help solve this power crisis. haidi: we are seeing some electricity demand slowing in india. will that help? >> it will certainly help for india, but we have to be cautious. india like china has been suffering from shortages, blackouts, and that is linked to coal supply. coal mining regions in india were struck by heavy rainfall in recent weeks. they are having a new bout of rainfall, but that is crippling demand. it is cooling the air and

crimping energy demand. the situation does remain quite precarious. coal-fired power stations, they are slowly starting to see more coal supply. still a lot of challenges to work through, but the outlook does look a little more positive. haidi: i've had a lot of chaos when it comes to their copper market. what do we know about the drawdown in inventories? >> that's right. as you say, those withdrawals helped fuel the price gain, helped tighten that market and push those inventories down to the lowest level since the mid-70's. we know who is behind the majority of those withdrawals. what we are told is it was

traffic driving that action. shery: david springer, editor. city issues rules to fight off burnout. the details ahead. this is bloomberg. ♪

>> i think we are at a moment in time when we are coming out of the pandemic and there are a handful of things going on. all over the world, there are labor issues. there are supply chain issues. there are some secular trends we have to watch closely, but i think we are adjusting and dealing with it. shery: jamie dimon announcing a surprise pay boost for wealth advisors at jp morgan. our finance reporter joins us. another pay bump amidst the wars in the financial sector. >> jamie dimon was at windsor

castle awaiting the queen when he addressed staff and ruled out the red carpet, saying they are in for a pay bump. it is a structure tied to the length of time they have been there. it is an award for high-performance and for advisors who have brought in a lot of retail clients, they will be paid in restricted stock units, and jp morgan said this is the unit that will double its staff to about 1000 people in the coming years. haidi: james fraser pushing for some changes there. >> citi has been standing out from the pack in terms of their return to work, return to office move, and jane frazier already brought in a zoom-free friday, and now she is saying she would

like people to restrict their meetings between 12:00 and 1:00 p.m. to 45 minutes -- excuse me, 12:00 and 1:00 p.m., no meetings, and meetings should be 45 minutes so people have time to catch up. shery: what does all of this mean for actual costs? >> definitely for banks trying to retain and attract talent, it will cost more. jp morgan said they are expecting higher expenses. remember, they already gave extra pay for junior bankers, and now it is the wealth advisors turn, but this is the cost of doing business when they are trying to generate record

revenues, particularly in the dealmaking business. let's get you a quick check on the latest business flash headlines, netflix posting its highest subscriber growth of the year thanks to the popularity of "squid game." the company added over 4 million subscribers in the third quarter . about 140 2 million households started watching "squid game," making it the most viewed program in netflix's history. googles upgrade of its latest pixel phone has a better processor and camera as it tries to compete with i -- with the iphone. sources say softbank offered hundreds of million dollars for a steak that was valued at more

than $8 billion. it is understood they've had discussions with other investors, but it doesn't need to raise funds. the world's second-largest iron or supplier has reported production numbers. the result, also higher on the quarter. the performance may help to counter a drop in performance. shery: we are minutes away from the open in australia. what are you watching? >> plenty of trading. keeping an up -- keeping an ion those stocks, boosting its forecasts and reducing cost estimates, while evolution reported more costs.

over at flight center, that company did flag positive early signs in australia, but it didn't offer full-year guidance. over at super retail, higher transport costs, those remain a concern, but the group dde couch better margins. shery: while we are awaiting that open in australia, kiwi stocks, the only ones trading in the early asian session come up by about 2/10 of 1%. the aussie dollar, not doing much, but this after we saw a gain to that four-month high against the u.s. dollar. that's it for "daybreak australia." "daybreak asia" is next. this is bloomberg. ♪

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haidi: welcome to daybreak australia. sophie: we are counting down to asia's major market opens. shery: our top stories this hour -- asian stocks set to track a u.s. rally with solid corporate earnings countering inflation fears. gains for netflix, delivering its best subscriber