♪ haidi: very good morning and welcome to "daybreak australia." we are counting down to asia's major market opens. shery: u.s. stocks falling. investors will be eyeing the boj and ecb after policy calls from canada and brazil. haidi: china cutting coal

prices. shery: we will be joined in a few minutes by the president of the united nations general assembly. we are seeing u.s. futures rebounding a little bit after the s&p 500 fell. consumer facing giants mcdonald's, coca-cola rising after beating estimates. we also had some tech giants gaining ground with the nasdaq 100 up a quarter of a percent. we saw week results in texas instruments, so that led to pressure on automakers as well. crude prices at the moment allington little bit. we had reports that the eu and iran are agreeing to restart negotiations.

we have reports showing u.s. crude inventories rose. we had a strong five-year auction, but what stole the show was the 30-year treasury yield, plunging as much as 10 basis points at one point, the biggest drop since july. remember, that was when we were seeing another wave of covid infections in the u.s. the two-year yield continuing to rise. but it is not just about the federal reserve. take a look at roselle. the biggest increase in nearly two decades. the celebrate jumping by 7.7%. what is interesting about the decision is that it was unanimous. we know that brazil has seen

strong double-digit inflation, but this is across the region. consumer prices falling. it seems to be a universal theme right now. we are also talking about canada who just ended their bond buying stimulus program and are accelerating the potential timing of future interest rate increases. haidi: we have seen australia, the rba become the new battleground for the expectations of traders in the market after a faster than expected tightening cycle, and the rba has not seen that inflation to be that convincing. this is what we saw yesterday, that three-year yield jumping. the april 2024 security is the one the rba aims to keep at .1%, jumping double that, all this after we saw core consumer inflation yesterday soaring back into the rba's target range.

clearly, these expectations are playing out. the market expecting rate hikes of .75% by 2022. shery: we are seeing investors starting to price in what central banks are doing. we are seeing markets pricing in the likelihood of higher rates. today just here in the u.s., the five to 30-year yield gap down to the least since march 2020. haidi: there is one central bank that is probably more cautious now, and that is the pboc, as they grapple with the risks of the property sector. to that end, we are getting some movement when it comes to negotiations between key bondholders and evergrande.

they are to get together and have what has been called to us low stakes dialogues. it is quite interesting that we are seeing bondholders starting to take the first step in negotiations potentially. shery: let's get more of the top issues with investors as asia trading gets under way with markets editor kriti gupta, bloomberg economic -- global economics editor kathleen hays. kathleen: inflation concerns are right. it starts about how much these companies can absorb. it seems like they are

responding to something you see in the properties market. earnings are strong, earnings are coming in hot, absorbing the costs, so it is not just a tech coming out on top. nasdaq hitting an intraday record all-time high and then retreating. once again, it will come down to inflation, and those other concepts you are hearing from the likes of mcdonald's, from gm . supply chain issues are problem, but wage issues might be the next thing to watch out for. haidi: bank of canada really signaling a hawkish -- sending a hawkish signal. kathleen: i was a very dramatic. let me comment about brazil -- when your latest inflation rate is 7.7 percent year-over-year, of course you are going to make a dramatic move.

moving onto the bank of canada, because it was a bit of a surprise, they are not going to continue to buy bonds. that is over now. they will maintain the current level and speed up rate hikes. this is very outspoken for a central banker -- "we will be considering raising interest rates sooner than we previously thought. interest rates do not need to be as low for as long to get that all recovery and get inflation back." in fact, inflation is back on target. canada's rate year on year of 4% is well above target, so that is certainly proof of what the banker is talking about. it is also interesting they singled out the supply chain. supply disruption. they said it led them to raise inflation forecasts, and again, they watch supply chain issues so closely. let's take another quote, shortage of manufacturing

inputs, transportation bottlenecks, difficulties matching jobs to workers are limiting the economy's productive capacity. markets are pricing in and first rate hikes of january. the boj is supposed to, as you know, maintain its policy stance, very easy, very accommodative, which everyone knows is the signal the economy is still recovering. christine lagarde is expected to say that inflation may be running its fastest rate, but she things it will be temporary. maybe talk about chips and the bond purchase plan, but that is it. we will have to wait until a little later for the ecb to signal any kind of move.

shery: su keenan, you are watching what china is doing. su: china stepping in to set price caps on coal. the coal price surge is the basis for the prices we are seeing dropping in the bloomberg. we learned in little over a week ago that china was considering such measures, and the price chart really tells the story. you have coal, the interest, and physical commodities skyrocketing in recent months. a lot of this is reflected in what we are seeing in the latest trading on coal. the reaction to word of such price caps had the immediate impact of knocking prices lower, not only on chinese coal futures but on energy companies and also what you just saw with aluminum. the national development reform commission, the top economic planning council in china, they

are aiming to set the price of its most popular coal, and that price is said to be the target. almost all coal fix power plants in china running at losses. those close to the matter are telling us that this plan, which is said to last until may of next year, is still pending approval. haidi: bloomberg's su keenan, kathleen hays, and kriti gupta with our top stories. we are looking like a down day when it comes to broader asian trading when it comes to the start of the trading day. concerns over the recovery from the start of the pandemic. sydney to the downside when it comes to trading. we are watching that three-year yield as we continue to see the

rise. the highest on record, lowest under the yield control program. this comes after it talked 1% briefly for the first time since 2019 when it comes to that three-year. kiwi stocks down about .4%. the nikkei, we are looking at mixed stocks for trading, the bank of japan meeting a little bit later on today. shery: take a look at after hours trading for ford motors. we are seeing a gain of or percent. gm also gaining ground. ford has lifted their full-year profit forecast as much as 11.5 billion dollars. the chip shortage could extend into 2023. ford saying second-half sales will be up, half of the previous estimate, really flagging the chip shortage as the problem.

we have seen automakers under pressure. the philadelphia semiconductor index really under pressure as well. texas instruments really casting a shadow over the entire sector. let's get over to vonnie quinn for first word headlines. vonnie: thank you. evergrande group and bondholders have taken a step toward negotiations. the two sides signed nondisclosure agreements in preparation for potential talks with developers facing another deadline on dollar bonds this week. russian president vladimir putin has told gaba scum to focus on refilling its gas storage facilities in a move he says will ease pressure on the region's facility markets. european gas inventories are at the lowest signal level in

almost a decade. china's ban could be a strategic move -- china's ban on brazilian beef could be a strategic move. brazil's the exports plunged 49% in the first 15 business days of the quarter. the italian government has blocked the potential takeover. the italian government used its so-called golden power legislation to halt the deal. iran's deputy foreign minister says negotiations to revise nuclear deals will resume before the end of november, but tehran

still expects the u.s. to keep $10,000 of assets overseas as a gesture of -- to release $10,000 of assets overseas as a gesture of goodwill. global news 24 hours a day on air and bloomberg quicktake powered by more than 27 hundred journalists and analysts in more than 120 countries. haidi: coming up, we speak to one of china's top renewable energy firms. envision group's founder will join us. plus, we speak with the president of the united nations general assembly. this is bloomberg. ♪

>> these prices are soaring. all politicians with national responsibility are nervous because they don't want their citizens to suffer, but we need to make sure we don't throw away the baby with the bathwater. transition to renewable energy is the best answer to this crisis because had we done that five years earlier, we would not be in a situation that we would need so much natural gas that we would see these soaring prices. shery: senior climate chief on the answer to this energy crisis. the united nations general assembly has held its own high-level debate on climate action titled "people, planet, and prosperity." to find out more on that and anticipation for the glasgow summit, let's welcome the united nations

general assembly president. mr. president, thank you for your time today. thank you so much for coming in to the studio. let me start the energy -- with the energy crisis. any shifts, any changes, any additions to the commitment? >> the message is clear -- the future is in clean energy. it is in green, growth economy, so member states are increasingly coming up with net zero targets, and this is very encouraging. shery: net zero targets, though, how firm are those? the commitments do not seem as clear-cut. >> the commitments are ranging from 2030 22060. of course, the preferred deadlines are in the range of

2030 two be on target of 1.5 degrees, but some countries are at least coming out with that plan for 2060, and this is very, very encouraging, given the fact that until now, many countries have been on that camp. shery: this has been called the moment of truth. what do you want to see? >> i have been saying we are on the edge of the cliff. we have the technology, and i believe we have the finance. what is missing in this formula is the courage to make the right step. if we do not make this decision in glasgow, we are knowingly jumping off the cliff. i still believe that member

states will make the right decision, at least decide not to jump off the cliff. haidi: at least here in australia and i think a lot of other places, and a lot of that has to do with political will. how difficult will it be to unite everyone in glascow when each country is dealing with domestic factors? >> we have a range of countries from developing countries, and each country has its own internal challenges, and some of the countries contributed nil to what is happening to the global climate, but these countries are on the frontline of the climate fight, and therefore, the

challenges -- the challenge is they need the technology, they need the finance. these are the challenges that countries are facing. haidi: with climate change action in the handling of the pandemic and the rollout of the vaccination, we have seen the impact on developing nation. is that a priority, to address some of the inequalities where it has failed over the years? >> one of the first priorities of my presidency is to end the vaccine and equity. this is unacceptable. if we want to make sure that we did eat the pandemic, we need to

get everyone vaccinated. therefore, i believe we have the capacity to vaccinate everyone, and what this pandemic and climate change has taught us is that nobody is safe until everyone is safe and that only together we can do it. it is my intention to promote this message of hope. haidi: instead, we have seen ample supply across many developed nations, vaccine hesitancy, vaccine arbitrage, wasting of supply as well. what will you be calling for? we know time is of the essence when it comes to new variants. >> i'm organizing a high level

meeting early next year to address this and address how we can achieve this. i believe humanity today has the capacity to vaccinate everyone by the end of 2022. shery: you mentioned earlier that your presidency would be one of hope. tell us about how you plan to bring in this strategy in other issues other than vaccines. >> the presidency of hope is about giving hope to humanity. we have all lost loved ones. we have all lost jobs. we have all lost many, many things. it is time that leaders of the

world come out and tell their people that a better tomorrow is possible. only out of this hopeful promise can we come out of the pile of despair that we are in. this is what i want to do. i want to give hope to the youth. i want to give hope to young women and girls around the world that their dreams are achievable. this is my target. haidi: thank you so much for joining us. we will have many more conversations looking ahead to the summit throughout the course of the day and week. we will be speaking to one of india's top climate change experts. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. profit dropped after stock market declines hurting returns and slowing economic growth. net income was also down 21% in the first nine months, mainly due to impairment provisions. turner's largest insurer faces investment concerns about property betsy -- china's largest insurer. southbank's vision fund arranged two large moves last month. let's take a look at the day ahead for australia and new zealand. we are watching an etf tracking

crypto miners and infrastructure providers that makes its debut in australia today. just the latest in the global flurry of digital asset products, and of course, looking ahead to the rba's

shery: we do have rigging numbers when it comes to -- breaking numbers when it comes to shipping numbers for iron ore. iron shipments coming in at 45.6 million tons. analyst say they do still seek that for-your number is pretty much matching expectations. four-year capex at $2.8 billion to $3.2 billion. iron ore shipments seen between

one hundred $80 million to 185 million pounds -- 180 million to 185 million pounds, as well as making a number of other pledges . we have seen price volatility when it comes to iron or prices. we expect to see that start/stop fashion when it comes to demand out of chinese steel mills potentially capping gains. sticking with the climate debate , of course, and wind turbine maker, i want to bring in the founder and ceo who joins us from the sidelines of the singapore international energy week -- the founder and ceo of envision group. you are a dominant player in that sector. do you expect some of the discussions and commitment will

create meaningful change for your business? >> definitely. we see tremendous demands for wind turbines, for solar panels, for tv -- for ev, and factories. we see a lot of countries feeling cold problems, and the more incentive that is given to financial vehicles and renewable energy consumption, the cost of renewable energy is dropping significantly. fundamental -- fundamentally, renewable energy should be free. it is all about technology so we can develop it. if the pinwheel moves more slow for the long term, in the past

10 years, renewable energy has dropped around 80%. we have a very optimistic view for the next 10 years. we think it can be a major driver for the industry. haidi: what is your outlook for the scale of domestic opportunity? >> for china? haidi: for china and your business, yeah. >> china is embracing the green energy revolution openly. it has the potential double installation next year for renewables.

wind energy has already jumped but still far below fossil fuels. shery: installations this year in china seem to have eased from the peak and orders we saw in the path. what is the outlook for wind installation? >> i think the reason we have seen it he's a little bit is because last year was a rush year for installations -- the reason we have seen it ease a little bit. to finish installation of older pipelines, they are gradually building up for the new pipelines. as you can see, recently, president she just announced that around 100 gigawatts wind and solar new development base -- president xi just announced.

we see the wind installation and -- we think wind installation and solar will pick up again. shery: we are seeing china's resident xi jinping setting out ambitious goals. do you anticipate china reaching those targets earlier than planned? >> our take is we could see the central government has laid out a systematic approach to target the framework, the growth, and the timelines, and now recently, we are seeing the different sector from the electricity business to automotive to steal sectors, so the mechanical sectors all have a very scientific approach, and with the strong leadership of

government, we think that view is going to be achieved in the meantime. haidi: you still have -- not just you but a lot of other chinese players as well still have a small share of overseas markets. do you anticipate that changing? >> definitely changing. we have a huge backlog, and we supply wind turbines to the french market, and we are very active in mexico, in south america. we foresee not only wind turbines but also our battery, we announced a gigafactory in the u.k. and also in france. we plan to build 10 in -- 10

tons more capacity than originally planned in the u.k.. it is the right time globally for the company to go abroad. it is going to really benefit, so there is no boundary for the company's green products. haidi: it was great having you. envision group's ceo joining us there. let's now get to vonnie quinn. vonnie: u.s. house democrats have dropped a plan to tax the assets of billionaires. the ways and means committee chair says the billionaires tax did not have the support to get through congress. he says the house is instead discussing the inclusion of a 3% surtax on top of the current

rate for those earning more than $10 million. the rpi will drain up to $6.7 billion in a 28-day reverse repo on november 2. the move highlights the central bank's worries over excess banking cash turning inflationary. the u.s. says wikileaks founder julian assange will not face solitary confinement if extradited from the u.k. u.s. lawyers laid out several assurances. the u.s. wants to try him on australian espionage charges.

measures include a tax discount for the hospitality sector and the biggest cuts to beer duties in half a century in the u.k. as a sign of ramping up after the pandemic. wu said in prague that taiwan is democratic and will continue to fight for freedom. global news 24 hours a day and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. shery: the chairman of the u.s.

foreign chiefs of staff said beijing's test of a new hypersonic weapon is concerning. he began five naming what he sees as the biggest geostrategic threat to the u.s. >> i think it is china, and i have said that many times. i think as we look to the future, i think we are living in a historical epic, actually. we are seeing the rise of a country that is unlike anything we have seen probably ever before, as one of the great historical pivot points that i think we have ever witnessed, which is the rise of china. from the reforms of 1979 up till today, which is i guess 41, 42 years or so, they have had an incredible economic run and with a developed and military that is really significant. as we go forward over the next 10, 20, 25 years, there's no

question in my mind that the biggest geostrategic challenge to the united states is going to be china. i have no doubt at all. russia is important. russia has very significant military capabilities. north korea and iran are still there, but i think china is clearly the most significant geostrategic threat we face. david: there have been reports that the chinese have a hypersonic missile that can theoretically go into space and then come down with a nuclear bomb, escaping our ability to knock it down. is that something i should be worried about or all americans should be worried about? >> i don't want to get too much into the classification of what we saw, but what we saw was a very significant event of a test of hypersonic weapons system. it is very concerning. i think i saw in some newspapers that they used the term sputnik moment. i don't know if it is quite a

sputnik moment, but i think it is close to that. it is a significant technological event that occurred, and it has all of our attention, but that is just one weapons system. the chinese military capabilities are much greater than that. they are expanding rapidly in space, in cyber, and in the traditional domains of land, sea, and air. they have on from a peasant-based armory to a very capable military that covers all the domains and has global admissions. china is very significant on the horizon. david: i presume the united states has thought of doing a hyper missile as well and that we are not caught completely flat-footed in our ability to

produce something like that ourselves? >> we are clearly experimenting and testing and developing technologies to include hypersonic's, artificial technologies, robotics, the whole wide range. if you take a step back, what we are in history-wise, is we are in one of the most significant changes in what i call the character of war, but with the introduction of precision munitions, the ability to see all of the world, hypersonic's, technology is altogether, this is a significant change and we will have to adjust our technology going forward. haidi: chairman of the joint chiefs of staff there with david rubenstein. you can watch that conversation at 7:00 p.m. hong kong time. coming up next, the chip crunch continues to loom large for big automakers. this is bloomberg. ♪

>> we have seen recovery from the impact in cute free from some of our supply base -- q3 from our supply base that caused a little more impact. i'm optimistic we are through the worst of it. that's what gives me confidence we will see a stronger q4 and then a stronger q1 and as we get to the second half of next year, continue. shery: gm's ceo.

let's get more on gm and order earnings and the impact chip shortage is having on the industry -- gm and ford earnings. >> automakers today showed that they have navigated it pretty well, both gm and ford. both beat massively with earnings expectations. they did better than people expected. gm talking about still seeing chips being an issue for them going forward, and i think that was enough to really spook investors. ford struck a more confident tone when they talked about chips. they suffered earlier in the year when there was a fire at the chip factory in japan whereas gm suffered more with the outbreak of covid in malaysia. both at different times of year have taken a pretty bad hit.

it's just that now gm is more conservative and ford sees a better third quarter. haidi: do we expect the demand side to continue to hold up? >> it seems that way so far. if anything, there are consumers that have decided to get out of the market or just hold off, so it is kind of building. people say they cannot find the car they want, so they will hold off three months or wait until supplies are better, so i don't think that demand is going away. i think it is just waiting for more supply. dealers, auto executives, they still seem very positive about next year. when ships come in, they will be able to see more cars -- when chips come in.

haidi: we will have more on the state of the chipmakers market when samsung reports in a few hours. what is important to you? >> it is the boring stuff. it is really where some of the data we can glean -- not come to any conclusions, but you will get signals when you look at inventory data. particularly for samsung because it is both a user and maker of components, so it sits right in the middle of that supply chain. when you hear people say there's not enough finished product, part of it might be because of samsung and part of it might also be because samsung cannot get their components. we are looking at two charts. i will go through this quickly. we are looking at inventory, and unusually high, at least for samsung here, unusually high value of raw materials. you look at total inventory to

goods and progress. essentially what you are looking at here is that middle room for inventory, from raw materials when they put it into the factory floor, before it becomes finished product is unusually low. in other words, we might be able to see that maybe samsung cannot really start production on certain things because the sorter first room raw materials -- the sort of first room raw materials is complete. we see at first room, when components are complete and you can start the production process, and it can eventually make its way into that last room, which is inventory. when you look at that specific chart, the value of raw materials, the total inventory of finished goods, rather, is at the highest level in 10 years. this is after the second quarter. we will wait to see what we will see for the second quarter when they break down financials, particularly when what they say

-- because commentary so far about these third quarters have really told us something about these issues. shery: bloomberg news reporter david ingles will be watching for those final results in the next hour or so. it is time now for morning calls. td securities expect asia central banks to limit circulation of currencies despite headwinds. most countries which registered for accounts at least 2% of gdp invested heavily in the market. haidi: bank of america expects the boj to stay on hold. they expect the boj to look for the rebounds in the cpi rise -- caused by a rise in commodity prices. we will be looking for any comment but are not expecting

any verbal intervention. coming up, anz details. this is bloomberg. ♪

haidi: anz's profit has talked estimates. >> similar to the banks globally around the world, this was driven by the economic recovery, which, as we know, has been stronger than expected, so that allowed anz to wind back provisions that were set aside for a disaster scenario, which fortunately never eventuated, so bank cash profit came in at 6.2 billion dollars, just ahead of x point -- just ahead of expectations for 6.0 $6 billion. they also paid out a dividend more than doubled the amount from this time last year, so they are paying out 63% of earnings. shery: --haidi: customers seem to have managed to lock down pretty well, though. >> that's exactly right. the ceo says customers have finished well through the pandemic, but he did say we will not know the full effect until

the end of next year. home loans were a good area, obviously. we know that the house price here in australia is going gangbusters. the second half was hurt by stiff competition, processing delays with loans. they just could not cope with the volume of requests they were getting, and also customer decisions to pay down loans earlier than scheduled. the other thing was new zealand did really well. they posted 11% growth in home loans and managed 82,000 new accounts. haidi: haidi: let's get the latest headlines. an activist investor has bought a significant position in shell. shell said it would fit.

sources say atm will price shares about 2000 in what could be india's biggest ever listing. the company hopes to raise as much as 2.4 billion dollars, 10% more than its earlier target. shery: take a look at cryptocurrencies. we are seeing bitcoin under pressure right now, below its 20-day moving average, signaling there could be more selling in bitcoin. the launch we saw last week, that optimism fading a bit, not to mention that we are seeing a little bit of profit taking. we are talking about the worst day in about a month, while, of course, that bitcoin etf's at that $38 level, a second session

of losses. there was a lot of optimism, and i know you guys are also launching something in australia. >> yeah, and you know how many crypto analysts we have spoken to that have said perhaps a better option for retail investors is to get that exposure via an etf that trades on the platform, from the technology that supports crypto. this seems to be an opportunity. we have crypto miners debuting their etf in estrella. this is a traitor fund attracting -- tracking cryptocurrency minors. the cosmos global digital minors access etf, including firms, and their ceo saying this is kind of the closest thing he sees to a correlation to bitcoin in a regulated exchange, so more and more offerings therefore crypto

investors. lots more coming up in the next hour, though. we will get more on the markets as we get into just a few minutes away the start of trading here in sydney. this is bloomberg. ♪ (announcer) looking for a better way to lose weight and feel good?

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>> they came forward with all kinds of creative workarounds. diversifying our supply chain. . >> a very good morning. we are counting down to asia's major market opens. >> welcome to daybreak asia. our top stories this hour. asian stocks set to fall as yield curves flash warning signals. >> china look to cap all places to ease a power crunch. >> we are awaiting final third-