>> 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-quarter and is with a big

profit jump expect from ship and phone prices. >> let's get you to the start of trading in sydney. this is the first of the big four to release those numbers, samsung. we are expecting broadly a softer day when it comes to asian stocks among concerns from the pandemic and elevated inflation forcing monetary policy. quite a lot of action when it comes to the bond space as well. the deli trading at 75.15 -- .7515. >> take a look at futures trading higher. we are seeing u.s. futures

jumping .2%. this after we had the s&p 500 falling in the regular session. really under pressure after seeing the regular floating hi. it was all about -- high. it was all about corporate earnings. the chicago nikkei is up. we continue to see this downward pressure on the japanese yen against the u.s. dollar. trading at a narrow range right now. this is all about the boj today. expected to keep policies on hold. we are seeing crude under pressure. it has fallen already in the new york session. of course, you don't want to miss a big interview coming up.

gently june joins us to discuss everything from supply chain disruptions to china's energy crisis. also, the raise in environmental impact. it is all about that because we continue to see more and more global central banks starting to hike rates. they are starting to see inflation concerns are accelerating. this would have been the biggest and about two decades. not to mention the bank of canada is accelerating the potential timing of their rate hike signaling -- rate hikes, signaling a more hawkish move. >> that is also in the us trillion bond market -- australian bond market as well. that also comes from that able 24 bond market -- that april bond market.

we are seeing rate hikes by the end of 2022. certainly these markets will tighten quicker. that three year yield jumping as much as 20 basis points to over 1%. the april 2024 security is keeping at 0.1%. we continue to see oscillations in that market this morning. >> we are seeing inflation pressures felt by central banks. the market is starting to price that in. we are seeing claps and global bond curves flashing warning signs on growth -- clashing global bond curbs flashing wearing signs on growth. yields are sent lower as well. >> what we continue to watch is asian credits. in particular, the chinese

credit market as well as we hear that advisors to ever grande, these are advisors and some of their offshore bondholders are keeping -- taking key steps toward debt talks. they have taken that first step toward negotiations. we are talking about will hand -- houlihan and others signing these. they are holding talks that there expected to devote some information about the construction of upcoming projects and working at where these obligations fall and what can be achieved. >> we do have more corporate news. breaking global boundaries. this ipo is at $47 per share. this as we heard the chipmaker and major shareholder were planning for rates as much as $2.6 billion.

we are hearing that it will price that u.s. ipo at the top of their range. they found this very public market investors given the semiconductor industry, the chip shortage globally. that is leading to more inflationary concerns. let's start with the major market policy. the bank of japan standing out as one that must keep its policy on hold. kathleen hays is here with a preview of today's meeting. not much expected when it comes to policy changes. perhaps some forecasts. >> there is some doubt about how strong the recovery is after the covid cases resurged. no chips to build cars, etc.. there are some things the boj has to contend with.

they are seeing that 10 year yield around zero. no changes there. the forecast could be revised lower. they had two quarters of rebound after three quarters of negative growth. now at 1.9% gdp. we will see if the boj should downgrade that, that would send a powerful signal. the last press conference had to boj cheap saying we need to keep this this way because it is barely above zero. this weakens the yen a bit more. the federal reserve, the leading central bank in the world is getting ready to start to taper. they are looking for a couple of rate hikes next year. what a contrast to the bank of canada which came firing out of the gate today saying that we will stop our bond purchase program. we had enough, we will keep the

level of the portfolio steady for now and we will have to raise rates faster than we thought. we will consider spacing interest rates sooner. they don't have to be as low or as long to get inflation back. inflation is about 4% right now year-over-year. the target is at 2%. they are dealing with something they totally didn't expect. markets are pricing in a january rate hike for next year. as you know, brazil with a 150 point rate hike. as sherry said, central banks around the world are being forced to consider hiking rates faster and higher than they were before. >> the markets may be their hand -- forcing their hand. let's get to energy now. su keenan has the latest.

beijing is not planning to limit the price. >> that is it designed to limit the power holders that we have. let's go to the impact it is having. we are seeing coal prices come down right across the screen and china. at the bottom is aluminum. coming down in a very big way. we are seeing an immediate impact their -- there. if we look at where coal has gone short-term, skyrocketing prices has driven the prices short-term. we are seeing a huge supply crunch. that is china's top economic planning body, they are aiming to set the price of the was popular grade coal at 440 you

on. -- yuan. they say that would be the target rate. they know the price -- we know that the price surge in coal has caused all coal-fired plants in the country to be operating at a loss. those giving us the details on the price cap say that it is still pending approval by the council and is subject to revision. this is not just in china but commodities around the world. >> how likely is this to fix the problem? >> we are seeing prices come down. we are seeing analysts say that in september and october, they saw somewhat of an easing of the coal and power prices in china. that has to do with fewer outages. there has been a drop in demand due to the fact that there were these emergency power cuts.

that said, analysts say you cannot overstate this supply crunch. you have analysts saying one of the most severe winters is about to hit in over a decade. the fact that the pandemic will recover, this is causing demand for electricity to skyrocket. that is causing utilities to switch over to cheaper coal. that is causing coal to skyrocket. this gives questions about china will give -- whether china will give the go-ahead to coal project. it is already encouraging homeowners to produce as much as possible -- coal miners to produce as much as possible. >> now the first word headlines. >> vladimir putin has told gas pumps to focus on selling their european gas storage facilities. this will ease pressure on the energy markets.

they will start the process on november 8 after they are finished filling the mastic supplies. gas inventories in europe are at the lowest seasonal level in almost a decade. house have dropped a plan to tax billionaires. richard neal says billionaire tax does not have the votes to get through congress. he said the inclusion of a 3% surtax on top of the top income rates for those earning within $10 million. everbright has taken a step toward debt negotiations. the two sides signed non-disclosure agreements for initial talks. the developer facing another bond hearing.

iran's deputy foreign minister says negotiations to revise the 2015 new clear deal will resume for the end of november. tehran still expects the u.s. -- talks derailed in june. iran says the date for the new many will be decided next week. global news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. >> still ahead, a preview of today's bank of japan's vision from the four doj auditory policy board number -- former boj monetary policy board member , sayuri sharai.

this is bloomberg. ♪

>> there are concerns that the recovery from the pandemic is slow as elevated inflation forces tightened monetary policy. -- titan -- tighten monetary policy. is inflation top of mind for companies looking to have that -- those paths cross? >> i think inflation is top of mind for any number of players in the marketplace in any -- many parts of the world. in japan, we would expect the boj will hold firm for now. the reality is that inflation has been low for so long that

the inflation picture has become very complicated because of the supply chain. many countries including the u.s. and japan will wait before taking action. >> in this part of the world, dig headwinds are coming from the property crackdown and risk sector in china. what are the opportunities? >> and china, there are beneficiaries that the government supports. going back to the u.s. china tensions, china wants to develop its own secure supply chain. companies that support digitalization and hardware are very much supported by the government and good areas to it for options.

finally, consider -- consumer products in the middle class making life richer and fuller. those would be good targets for us. >> what are you seeing in terms of valuation? especially when it comes to japan. we have cindy opportunities being pointed out by analysts. -- we have seen opportunities being pointed out by analysts. >> we look for good companies that we can buy with a margin of safety where it is well-run by on spinners that own -- entrepreneurs that own a piece of the company. we can present capital. in this particular case, it is important to bear in mind that in japan, that is quite reasonable compared to other countries.

there is seven years of corporate governance reform that have led to much more activity. we have seen companies jump up in valuation substantially. we believe that japan has a lot of upside for regional valuations and much more action. >> what are you seeing in terms of valuation for cases like south korea and taiwan? we have seen that run-up in the markets they are given the focus on semiconductors and how heavily tilted they are toward tech. at the same time, we are seeing some concerns that may have gone too far. we have samsung final results today -- samsung's final results today. >> if you look below the top level of the biggest companies, there are still companies that are very attractive and critical to the tech industry.

there is a company that we like that is part of the samsung family. a chemical company. it is for special chemicals needed for cvs. those are trading well. we think that earnings could double in three to five years. >> always great to have your insights. that was the dalton investments chairman. you can get information by going to the bloomberg terminal and the bloomberg mobile anywhere app. this is bloomberg. ♪

>> taking a look at the top stories today on the global supply chain crunch. also, logistics companies from trucking. the vaccine mandate from president biden is fear to cause further supply chain backlogs. this electronics giant -- electronics giants' raw materials are piling up. the executives of ford and gm say that chip shortages may persist. they see the problem lingering until 20 put into. ford sees it lasting until well into 2023. -- gm sees the problem lingering until 2022 and 40 sees it going well into 2023 -- ford sees it

going well into 2023. >> bloomberg>> terminal users can read more about those stories. they are all about the supply line. >> they believe the supply chain issues are a near-term problem. >> what the real story is how well we perform from trucks and full-size suvs. we are selling every vehicle we can make. that along with the overall environment is allowed -- what allowed us to have a beat for the quarter. i think it shows the strength of our underlying business. i am really proud of the team and everything they accomplished. >> the magic words were everyone you can make. you can't make everyone you would like. i know it is continuing into next year. i guess my key question is if there is anything at this point

that can be done to speed up the time you can get the microchips that you need. >> we are seeing improvements in the fourth quarter. we were further impacted by covid. we are seeing a strong performance now. q1 will be better than q4. it will linger into next year and our feeling is that we will be in much better shape and the second half of 2022. we are taking steps in the medium-term to make sure that we deal with this constraint not only with chips but other critical materials and the supply chain. we have an aggressive growth strategy in front of us. we are going to make sure we can execute it. it is a near-term problem we will work through. >> advertising, if you can't sell as many vehicles, maybe you don't need to advertise as much. >> great point. we are saving across the board.

we are seeing strong pricing environment. just what we are doing to sell every vehicle we can. we have seen ways to make a business more efficient. we are working with dealers to drive the increase of profitability for them as well as improving our costs. across-the-board we are always driving efficiencies. that is an underlying strength of our organization. that supports the strong earnings. >> let's talk about the longer-term. elective vehicles. you embraced some aggressive goals for general motors. you had some big news from arrivals. it starts with a t. we won't say it. you have been dubious about fleet sales. where are you on fleet sales for electric vehicles? you really want brought acceptance. are you looking at fleet sales

for -- broad acceptance. are you looking at fleet sales for a letter vehicles? >> we are looking at what -- electric vehicles? >> we are looking at what we can do for fleet sales. we are looking at many different opportunities. with electric vehicles, you can reframe how the sales will be. we are looking at a number of opportunities. i think what we announced around bright drop, i am excited about that. >> we should not rule out that general motors may not -- may have a similar deal to hurts -- hertz. >> these are the least profitable type of fleet sales. we are not ruling anything out. >> coming up, japan's inflation may have regained -- resumed

talks and the boj may keep prices on hold. more on that moving is a handful. no kidding! fortunately, xfinity makes moving easy. easy? -easy? switch your xfinity services to your new address online in about a minute. that was easy. i know, right? and even save with special offers just for movers. really? yep! so while you handle that, you can keep your internet and all those shows you love, and save money while you're at it with special offers just for movers at xfinity.com/moving.

>> we have the technology. 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 step, we are going to go off a cliff. >> that was abdulla shahid speaking to us earlier. >> the chairman of the joint

chiefs of staff says china's test of a weapon is concerning. this is the most significant acknowledgment by chinese -- u.s. officials of the test. this is a weapon capable of carrying a nuclear payload. >> what you saw, i don't want to get too much into the classification of what you saw but what we saw was a very significant event of a test of hypersonic -- a hypersonic weapon system. i think they used to determine the papers sputnik moment. i don't think it is that close but -- i don't think it is like that but it is close. >> for viewers in asia, we have more tonight at 7:00 p.m. hong kong. julian assange could serve out

any sentence in australia. u.s. lawyers laid out several assurances that the start of the london appeal against the decision on metal health grounds -- there were to try the u.s. australia on espionage charges. interest central bank is normalizing liquidity. the are b.i. will drain sick with $7 billion -- rbi will drain $7 billion -- $6.7 billion. the annual budget has been used to raise money for every government department and offer fresh support for working families.

measures included a discount for the hospitality sector. global news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn, this is bloomberg. >> the bank of japan is widely expected to leave stimulus unchanged today while signally more delays in the recovery. the policy decision comes three days before the first national election will be faced. our guest was a previous member of the boj monetary policy board. you are expected a change in the outlook forecast given what has been happening with the state of emergency. >> yes.

for this year's economic growth, the boj projection is expected to go downward. it will go to around 3% or a little more than 3%. next year, i think economic growth could be adjusted upward. more than 2.8 or 2.9%. for 2023, i think economic growth will remain at a little more than 1%. there will be a downward adjustment. >> how much is the boj factoring in more fiscal stimulus measures given the general elections coming up? new leadership -- possible new edition? -- factoring and possible leadership? -- factoring in possible new

leadership. >> we don't know the exact amount yet. if that happens, it is possible that could generate greater consumption but i think we have to wait. they are likely to produce large fiscal stimulus around gdp. i believe that is not included in the forecast. >> when it comes to the broader theme of encouraging equality, equity, the relocation of wealth, -- reallocation of wealth, what policies could progress? >> they will stress distribution and equality. he said he wanted higher taxes on capital gains. because of the concerns on the damage of the markets, they

quickly moved from that idea. also, he wants to try to raise the equity of health care workers. i am not sure to what extent he can do this. he has not really come up with a fairly compressive policy on inequality. >> the boj fittings have been status quo for quite some time now. they are nowhere near 2%. not in the near term. do we expect that they will shift that wording? the timeframe to say that it is a longer-term goal? >> i think the boj will maintain

status quo until 2023. they have to. they are looking to increase debt-financed --finance. they are worried about the long-term interest rate. the boj has to maintain around 3%. as far as monetary easing, that weakened the fiscal discipline. no particular party is discussing anything about fiscal compensation. that makes the position of the boj strongly difficult. -- extremely difficult. >> it sounds like easing by the boj. is there any other elements to the clinical outlook we have not talked about? >> i don't think so.

i think talking about 260% of boj -- of gdp for the boj. just talking about more fiscal stimulus, thinking about how they will finance it. there is growing anxiety. >> great to have you with us. we are just three days away from the general election in japan. let's bring in our policy reporter in tokyo. they are struggling to hold onto a seat that includes the western part of tokyo. what does that say about their chances across the rest of japan? >> we went out to look at this constituency. this is in the neighboring

areas. this is in the west of tokyo. it is the kind of area you would expect antiestablishment party to do really well at the moment but we went there and we found the candidate there is kind of struggling to send off a candidate from the ruling ldp. the ruling party is failing to generate the kind of excitement it needs if it is going to be able to retake the administration for the first time in nine years. the cdp had roughly 10 seats in the 400 625 strong parliament. that compares -- 465 strong parliament. the count is likely to lose several dozen seats. it will not lose power to the cdp. >> he is very well-known known,

the former prime minister in japan. it is interesting that he is not gaining traction. what are the issues resonating with voters right now? >> the two that we saw in this constituency, number one is national security. and then also the vice defense minister. he is emphasizing that japan is in an increasingly difficult security situation and it must strengthen the alliance with the u.s. and make sure it is prepared for any unrest that may go on around the country. we see things like china and russia failing around japan recently. the cdp is less sure about the alliance with the u.s.. that is the big difference between the two. the other has been mentioned often during the campaign. the economy.

they talk about increasing disparity and how to tackle that. the cdp is talking -- saying that we can't trust the ldp to you that because they have failed to do that in the last few decades. they want a change in administration to tackle that issue. >> that was isabel reynolds joining us. we are looking ahead to those elections in just a few days. let's look at the numbers out of samsung. we are getting the third quarter consolidated sales numbers coming out. 73.9 8 trillion one -- 73 point98 -- 73.98 trillion won. this is sort of in line with those for the minari sale

numbers that we got about one month ago. -- preliminary sale numbers we got a month ago. there is a grim outlook when it comes to the global memory sector. there was a rise in semiconductor prices and not surprising, the strong demand we have seen for semiconductors and for the pricing of smartphones. we are try to get those data numbers out of samsung. for now, we are getting sales numbers. you can turn to your bloomberg for more on samsung's results. you can get commentary and analysis from bloomberg's experts. -- expert editors. we are seeing a profit of 58.2

trillion won. an increase of more than 20% from the previous quarter. this is bloomberg. ♪

>> we have those third quarter earnings, final numbers coming

for samsung electronics. an upper and profit of 15.82 trillion won. let's discuss all of this with the asia stocks reporter. this coming at a time when samsung just earlier got its first bearish rating in months. give us your take. >> the investors are looking for more details from the third quarter ratings. the third quarter profits were released earlier this month. we will get that in a couple of minutes. as for the bearish rating from bernstein, it may have been happening a little too late for investors who bought the samsung stock earlier. the stock lost nearly a fourth of its value since january's peak.

there is a difference in bernstein's report. it sees the cycle to last until late 2022. that is more pessimistic than other analysts who have a bi -rating on samsung. the price of declines may not be as great as before. >> we are just getting that breakdown now when it comes to the semiconductor profit. what are we gleaning when it comes to demand and the supply situation for chips at the moment? >> at the moment in the third quarter, we are seeing a strong demand for samsung electronics. this is the biggest in the world. we are seeing smartphone demand

continuing through the third quarter. this goes through early next year. it shows how sharp the decline may be. it will not be as bad. >> we are getting the i.t. and mobile operating profit coming in as well. slightly lower than the estimate of 3.6 6 trillion won. >> it was pretty popular in north korea. you can see people switching to -- from iphone to get the foldable phone from samsung. we may want to watch how samsung was able to deliver their phones

on time. we saw the the just expresses that may have delayed shipping. we may want to focus on how samsung has been navigating the the difficult issue. that could affect the fourth quarter phone shipment. >> we will continue to get those numbers through from samsung. let's look at the broader markets when it comes to trading on the thursday session. we are seeing kiwi stocks off by .4%. we are looking at the growth fees from the pandemic. they are forcing a tightening from central banks across the road here. singapore futures are trading

off. s&p futures are trading higher. higher by 4%. that bond rout is really putting this particular central bank to the test. lots more to come on daybreak: asia. this is bloomberg. ♪

>> we are just getting retail sales numbers out for the september period. we are seeing much better expectations of a decline. also calling back some of the losses from the previous month. that was a contraction of over 2.3%. this is better than expectations. they are recovering from the lifting of the state of emergencies -- emergency. that recovery is being played out. there is a contraction of 1.3%.

all of this is looking like a slightly brighter future. the boj why the expected to leave stemless unchanged but also potentially single delays to the recovery. this is before the first national election. the market for ipo's is supplying the main millions on behalf of the softbank prevention fund. let's get the details now from bloomberg's executive editor. >> like softbank often does, they are doing things other differently. after setting up this vision fund to invest in technology companies, it has done many things a bit differently than

others. in this case, what it is doing is after his portfolio company's have gone public, rather than distribute in goes sales to its limited partners, it is borrowing against those shares while they are still in the public market. that allows them to distribute money to their limited partners. the idea is for softbank to benefit if there shares continue to go up. the risk is that shares could go down as well. >> this has happened in the past. i believe with over -- uber? >> yes. they made a practice of arming against their equity stakes. initially they did it with alibaba. they borrowed a billion dollars against that holding. they also borrowed against uber

after that. there is create a financing for them to get at some cash without having to sell the shares. that would force them to pay taxes. that may also prevent them from benefiting from any upside. >> we will be watching softbank at the open. we will watch some other stocks on our radar. nissan's masayohshi -- masayoshi son meets his got apart. the nikkei newspaper -- his counterpart. this nikkei newspaper said this can be used as a treatment for covid 19.

let's take a look at the latest business flash headlines. we saw profit dropped 31% in the third quarter. net income was also down 21% in the first nine months. mainly due to impairment provisions related to china. this activism investment has pushed for a breakup. that is the equivalent to .4% of the company. shell says it would benefit from splitting lng, renewables and marketing into a standalone company separate from its legacy energy business. indian digital payments company, paytm is seeking a billing

dollars. they will price shares above 2000 rupees. this could be the biggest ever listing. the company hopes to raise as much as $2.4 billion. 10% more than the earlier target. >> we have a big interview coming up. this asian investment bank president joins us and of the pivotal talks. they will be weighing in on financing, the economic recovery and much more. we will take a look at samsung's reaction to those numbers. tokyo is coming online as well on bank of japan decisions today. we are seeing a broader selloff.

sentiment in asia continues to weigh on the economic recovery. tighter monetary policy could take place sooner than inspected. we are watching the flattening of the monetary curve as well. this is bloomberg. ♪

>> welcome to daybreak asia from our headquarters in new york. haidi: asia's major markets have just opened for craig. warning signals and investors watching policy decisions from the boj. net earnings beat estimates. semi conductors are up 8% from

one year earlier. and evergrande and some offshore bondholders are said to be taking cautious steps towards negotiations. shery: the nikkei is under pressure, every sector is in the red, being led lower by energy and real estate. this extends to sessions of losses. retail sales beat expectations but the japanese is holding steady -- japanese yen is holding steady. the boj decision makes this an important day in japan. we will wait to see the latest. the kospi, two sessions of losses under a little pressure. we continue to see samsung down 6/10 of 1%.

they just reported their third quarter consolidated net, beating expectations but days earlier we saw the first bearish rating for the first time in months for the biggest stock in the korean market. korean won is holding a study a little bit of pressure. haidi: across the rest of asia trading, some jitters when it comes to elevated inflation levels and what the markets are expecting. australia, down 3/10 of 1% after the action in the bond market. the aussie dollar is just above the $.75 u.s. level.

trading is steady in the kiwi. asian stocks are up about one quarter of 1% as inflations and policy tightening measures continue. monetary policy around the world , let's talk with mark. what are the markets so concerned about at the moment, and is it a combination about a slowdown in growth and tight policy? >> it is all of the above and for once, that short end of the yield curve is what is getting the attention. not many days where we are talking about two-year yields around the world but they are getting their moment in the spotlight. 0.5% on the two-year even though the fed has not started tapering yet. the market is already pricing in

higher rates in the united states. this was not just treasuries. canada, australia, you -- the u.k., all considerably higher. what we have learned in the past decade is that central banks are led by the markets in a rate hikes. they do not do anything until the market has fully priced in the next move. the fed has been insisting they are not ready to do so. tapering starts next month but rate hikes themselves could be late 2022 or 2023. they are going to have to address that mismatch. either they will address it forcefully, with a significant decrease in yields, or they got something wrong on inflation. shery: and the ggp curve has its

own flattening theme. >> exactly. we are seeing the superlong end of the market. the 30 year or 40 year sector of the curve. the two-year curve has been very quiet. little volatility in the 10 year curve. insurance companies and banks tended to make a difference to the very long and. so the boj today will not do much but we expect they might slightly bring down their forecast for growth. they might be sanguine on inflation. equity markets are uncertain and it gives people a reason to go to the long end of the curve. thanks have been underweight. so what might be a flattening of the superlong and to the middle part. haidi: mark, thank you. shery: we are watching samsung

in south korea, it is weaker at the time of trading. it beat the average analyst estimate. what is happening with stock? >> samsung investors are not so impressed by the third quarter earnings results. net income coming in slightly higher. it is probably because all of the figures are in the past and investors are focused on what will happen in the fourth quarter and early next year. in particular, samsung's forecast on the memory chip price outlook. that trend depending on supply delay situation could give this a big boost, or the opposite.

stresses that the fourth quarter demand for chips will be strong but has yet to give out its outlook on the prices. haidi: stocks have lost more than 10% this year on concerns on the cooling in chips. what about the devices part of the business? has the foldable smartphone been of interest? >> yes, and samsung was probably able to catch some of the clients from the apple iphone users with this expensive flip phone. it has helped samsung boost its spot in line in the third quarter. whether it will continue to make it seems unprofitable will depend on logistics issues that have led to some loss of opportunity for other companies.

if samsung can redo -- 10 secure the products -- if samsung can secure the products. haidi: you can get more on your tv for commentary and analysis from expert editors. let's get to the first word headlines. >> new uncertainty in funding president biden's agenda. the billionaire that did not have the support to get through congress. they would be a 3% surtax on the top of the top earning rate of those earning $10 million.

-- unveiled $103 billion in terms of spending. measures include a tax discount for the hospital -- hospital tap -- hospitality sector. a bank lifted the benchmark rate and says another hike of the same size would be appropriate in the final meeting of the year. brazil is facing inflation and covid concerns. india central bank will drain cash as a step up effort to normalize liquidity. the rbis will drain up to $6.7 billion via a reverse repo.

the governor has flagged to the move in the october policy statement that highlights the worries over excess banking cash turning inflationary. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. shery: still ahead, a big interview with the asia infrastructure investment bank. the discussion of plans with lining up with the paris agreement goal. and china's market, the view from a strategist on bank wealth management. this is bloomberg. ♪

shery: we are days away from the

climate summit this weekend. a big jump in investments for climate financing. let's discuss with the asian infrastructure investment bank president. thank you for joining us on the show. you just finished your sixth annual meeting. tell us how your new climate goals fit into the vision. >> the meeting is actually still going on. the opening ceremony and special sessions with the board of governors have completed but we also have meetings with ngos and tso's today. i am encouraged by the attention paid to what the ai i be will do

-- aiib will do. a big announcement is between 2019 and 2030, the accumulating financing for climate change would go up to $50 billion u.s. and at this stage we already have gotten 41%. to achieve the purpose, we work with the private sector and by 2030, investment in the private sector would go up to 50%. we are working hard to achieve the objectives. shery: tell us more about working with the corporate sector and why adopting green technology is important. >> putting all of the resources

together is limited still, which is why it is crucial are -- crucial to work with the private sector. we are already doing a lot with private sector companies. we actively work with companies for sustainable capital market initiatives. through this mechanism, we can mobilize more resources from the private sector to invest in clean, green economy. shery: and globally, the upcoming talks are very important. how much of the global energy crisis -- how much of the global energy crisis will impact the

meeting? >> the meeting is held prior to the meeting in glascow. all eyes are focused on the glasco meeting. and we are working together and intend to send a strong message to the international community that we are working very hard. at this moment one of the big issues faced by all of us is how to deal with the energy shortage. i will not say it is a crisis, i think it is a momentary mismatch between energy supply and demand. but it should not misguide all of us to think -- into thinking that we should reverse. this is a warning to all of us.

in transitioning, we need to ramp up more efforts into renewable energy. haidi: we are seeing global central banks start to normalize policy, as well. in this environment, what will be the impact on the developing economies you work with, not to mention your bank operations? >> particularly the low income companies are working -- are dealing with two issues. one is how can they ensure the economy will move forward, facing the disruptions of the global supply chain, and how to ensure that the continued investment in climbing -- climate financing and infrastructure will not create future debts, especially for

those already highly in debt. these are the challenges. i do not think the countries should back off. international communities should help them. we -- shery: we have seen debt problems play out in africa. is there a best practice model you have in order to avoid these problems? >> i think the debt problems in africa and other countries have a long-term issue. it's not appropriate to point figures -- point fingers at any of the countries. i've been involved in the business since 1980 and all of those years we have talked about debt issues. so what we do is to not create more debt, but we will help those countries improve their economies so that they will be more capable of having the debt.

this is essential. this is why we look at all of the projects proposed to us by the clients but if they want to make a difference and help improve the environment and deal with climate change. haidi: the pandemic has led to more debt around the world, climbing out of the crisis. tell us about how you see some of the structural shifts that have occurred because of the pandemic and how it will change the world economy years from now. >> we have done a lot of financing to help the country deal with pandemic. we provide masks and essential medical equipment. we try to improve the health care systems in those countries. and we help them improve vaccine

access and capacity to manufacture vaccines in the future. the pandemic has changed a lot of the work mode and we have tried more than ever to cap the ai and modern technology. so this can also speak of the disruptions to the supply chain. and also, with new roads of transportation and communication can help us reduce emissions because we would be more efficient. so thinking about changing the way we behave and communicate with each other. shery: let me draw from your

experience as a member of the pboc. we have seen concerns about chinese property sector and slowing economy. in your views, what are the biggest risks in the chinese economy that could impact the global economy? >> chinese economic rebound has been very impressive and the central bank policies to deal with the challenges is timely. but compared to some other countries, i would not say china would be faced with more serious issue in terms of inflation and disruptions in certain sectors. china's economic growth slowing down is because of a couple of factors. first, it is due to the enhanced

awareness of the climate and environment. so don't look at the number of gdp, look at the quality. solid, high quality growth is more important than looking at the numbers. i think that is very important. secondly, chinese economic base is much longer than what it was 30 years ago. so one percentage point of growth is not the same thing as what it was previously. but chinese growth is also very linked to the rest of the global economy. so i think it is very important for the developed countries, the u.s. and major trade partners. that is very important. shery: it was a great pleasure

to have you on. thank you for your time. haidi, big moves in the market. haidi: [indiscernible] this calls and a lot of reassessment. cba saying they expect the rba will wind down next year with a rate hike to come in november 2022. lots more to come. this is bloomberg. ♪

>> evergrande and bondholders have taken some steps. stephen engle is in hong kong. incremental progress. >> progress for the bondholders

to at least get to the table and take the first step towards the first table. there 30 day grace. -- 30 day grace period went down to the wire and left bondholders in the dark with hardly a people out of evergrande. so -- hardly a peep out of evergrande. so yes, they want to have a conversation about asset sales and various projects that have to get back up and running and generating cash. sources tell us the advisors to the bondholders has not been approaching evergrande since early september but was rebuffed on the topic. but has -- asset has not -- so

things are a little tighter and it looks like nondisclosure agreements have been signed by both parties, and that might be the first step towards talks and get discussions going. shery: could we see cash infusion from the billionaire founder himself? authorities are requiring it now. >> we are learning much more about his financial health. he is said to have lost a considerable amount of money. he and his wife earn it 77% of evergrande. in an island. our index puts his wealth down several billion dollars from previously. since the company listed, he has

received $7 billion in dividend payments. shery: there is plenty more to come. this is bloomber 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.

>> iran's deputy foreign minister says negotiations for the nuclear deal will resume in november. they still expect the united states to release several billion dollars frozen overseas as a good faith gesture. washington says they will be discussing things this weekend. vladimir putin is in talks to resell his a gas storage

facility. he ordered the giant to start the process in november after filling domestic supplies. inventories are at the lowest seasonal level in almost a decade. taiwanese president has confirmed u.s. troops are on the island, which could escalate tensions with china. china condemned the czech republic for welcoming the foreign minister to the country. the chairman of the joint chiefs of staff says china's recent test of a hypersonic weapon is concerning. he says -- this is the most significant acknowledgment by the u.s. of the test. it is capable of carrying a

nuclear payload. >> we saw a very significant event of a test of a hypersonic weapon system. it is very concerning. i saw in the newspapers, they used the term sputnik moment. i do not know if it is a sputnik moment, but it is close to that. >> watch more of his comments on the david rubenstein show. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. haidi: selloffs in the short end of the bond market in australia continues after daily operations . another 17 basis point move in the three year yield. this raises the question, how

much will a flatter yield curve hurt stocks? we see this scramble as tightening is happening faster than markets expected. at what point will the negative correlation play out for equities? >> the yield curve is flattening. in march it was 1.6%. then down to 1%. but looking at the gap between the two-year and tenure is [indiscernible] so growth expectations have come

off a little bit but have not reached a level where it is a major concern and would derail the market. we think eventually it will go up [indiscernible] we think inflation will start easing the second half of next year as pandemic rules ease. haidi: structural adjustments might not be transitory, particularly pertaining to crackdowns on tech or property. does that present the biggest downside? more investors are getting bullish for opportunity in china. >> indeed.

the china market presents some opportunity. in terms of if the inflation is transitory or otherwise, it is only recently that it has shot up. [indiscernible] [echo in audio] shery: we are seeing corporate results come out in the u.s. and it looks good, despite inflation concerns. what is the earnings season this time around telling us about

where the markets are going from here? >> so far in october it is around .5%. [echo in audio] so we have a pretty good earning susan. -- earnings season. we cannot expect it to remain that way. it will go down but [indiscernible] shery: it is always great having your insight, thank you, as

always. plenty more to come on daybreak asia. this is bloomberg. ♪

shery: as more banks heads the stimulus exit, the boj is keeping its policy on hold. kathleen hays has a preview of

what to expect. >> keep the policy on hold because in large part the economy has a dark cloud over it. look at this chart. japan, two quarters of positive growth after the deep dive during the pandemic. so a small down, and now a growth of almost 2%. that is great. except the covid resurgence is weighing on growth and exports have decelerated and shipments of cars overseas was down 40%. that is what happens with the supply chain shortage. so there are concerns and are expecting perhaps a downgrade of their outlook. inflation, the head of the bank has stressed that we have to keep extraordinary monetary stimulus in place.

you can see the headline the cpi, the yellow line, is just above zero. the green is the target. the purple line is what they watch closely. zero -- it is at -.5. this could weaken the boj. after the election, the prime minister will probably retain the seat and will probably focus on new capitalism and let the boj stay where it is. haidi: china plans to limit the selling price of thermal cores the -- thermocouples to ease the

crunch -- thermal coals to ease the crunch. does this move help ease the energy crunch? >> it should. there was a lack of coal supply because of safety checks china implemented after a lot of mining accidents happened. it led to a surge in cool places where --coal prices where manufacturers were losing -- were having huge losses. now it is trying to curb the supply impact with surging

prices. so it should go some way in helping them and we are already seeing matt with the way prices are reacting. -- seeing that with way that prices are reacting. in a lot of countries, the cost of productions and profits you get are the and center of why they would increase output. but beijing has told the coal miners to increase output, no matter what the cost. the b about the same as production. so the coal miners have been ordered by beijing to increase output as much as possible. they are just going to have to do it.

shery: up next, southeast asian countries continue to slip toward the bottom of the covid resiliency ranking. we will tell you why, next. this is bloomberg. ♪

haidi: we are tracking the

fallout of the global supply chain crunch. logistics companies and industries are warning president biden's vaccine mandate will cause further backlogs. the alarm is continuing to be sounded on chip warnings. the problem could see it lingering into 2022 or 2023 but the prolonged crunch has provided a boost in prices for samsung. they beat estimates but the company warns that other chip shortages could impact consumer demand. shery: some stocks are rebounding from early losses days after we saw the first

bearish rating for samsung. you said it, component shortages have been an issue for samsung and it could impact chip demand but so far, the third quarter has led to top estimates and they see strong demand for servers investing in the cloud. terminal users -- bloomberg terminal users can learn more about this on our new function to follow. haidi: we continue to monitor global recovery. and in the meantime, we continue to see inflation woes play out when it comes to market expectation. asian stocks trading lower today. let's not call it stagflation yet but a combination of some in-flight -- some expectations

falling and others rising. the short end of the australian bond market, the rba skipped the opportunity to intervene and we are seeing runaway pricing ahead of the rba meeting next week that they are potentially inflating by next november. shery: we have boj, bank of canada, and brazil, and we will keep you updated on the changes. for now, many students have managed to continue remote learning during the pandemic. millions around the world had their education cut off. we asked about a plan to bridge the digital divide for the millions of students. >> 55% are back in school as

strict health protocols. time will tell. initial preliminary research shows we have lost anywhere from eight months to a year on average. that is a very serious number for an educational system. what is interesting is that the impact is not even. it depends on where you are, which area or region that has more or less connectivity, and your age. the younger you are, the bigger the impact of the loss of learning. >> how successful been -- how successful and accessible has remote learning been for students in the country? >> some areas of the country do

not have access to internet. those that do, a lot of them have intermittent or slow access. so dealing with resume classes, videoconferencing technology, bandwidth matters. so interim access is a poor proxy. the inner cities, the big cities where most of the population lives in indonesia, they were able to learn online but the process is not optimized yet. so the acceleration of the gaps in inequality has been a wake up call to governments everywhere, and to the private and public sector to fill in the gaps and catch up. >> the pandemic is a reminder that creative solving.

how does this need to evolve? >> the first thing we did was set the type of profile we needed. within it, some key elements are neutrality and morality, we have independence, creativity, collaboration. and global citizenship. the overall goal is to become the framework by which we change curriculum, teacher training, technology solutions, in order to push those six profiles. so that they can leave the

education system and join the new rapidly changing economy. it will not be in for a nation -- information to find economy, it will be skill-based. >> indonesia has a young population. is this a risk to the economy, given what has happened and transpired? >> you can see it both as a bonus and as a liability. it depends on what happens. are we able to create enough transformation and flexibility and relevancy quickly enough? can we create enough jobs? are there enough opportunities and jobs?

there will never be enough jobs for all the college graduates. so we have to create a higher education system that actually trains people to become entrepreneurs and create more jobs, not just to become a worker in a job. shery: southeast asian countries are lagging in our covid resilience ranking. haidi: european countries dominated in october. we know things changed quickly when it comes to the rankings. what is the big take away from this month? >> is just a snapshot in time. we see big changes from last year, when asia was ruling supreme with they very effective

containment strategy. and now europe is on top because they are embracing reopening, but with high vaccination rates and restrictions on what people can do when not vaccinated. that has kept europe dominating our top 10 for october. ireland does not number one, spain is number two. the nordic countries populate the rest. norway, denmark, finland is doing well at reopening, but does it in a way that is not leading to huge outbreaks. but europe is facing down another winter and we are starting to see cases and deaths picking up again in eastern europe, which could not bode well for the top rankings. shery: what happened to

singapore? >> this was former number one and now ranked 13. the biggest drop for a former number one in the ranking history, which was started almost a year ago. it is in the middle of a very painful transition, moving away from the covid zero and targeting no cases and keeping everything closed, starting to open the borders and trying to ease restrictions internally. that is leading to an uptick in cases and deaths. they had just 29 deaths all of last year. it is now 349 deaths. we are seeing some pressure on a very well resourced hospital system in singapore. but the fact that they are

pulling back in some of their internal easing has counted against them in the ranking this month. shery: let's get you a check of the headlines. amazon is reportedly set to create 200 more jobs in singapore next year. a new office is expected to open in 2022. that will add to the 2000 full-time and part-time workers. haidi: a new possession in royal dutch shell. in a letter to investors, they say it would benefit from moving the renewables into a standalone company. [indiscernible]

the italian government used legislation to halt the deal. shery: south korea, big earnings. s oil profit coming in above expectations. samsung engineering reporting and operated profit for the third quarter that beat the average estimate. we are following samsung given the latest results. haidi: we are nearly at the midpoint of earnings season in china. thursday, more than 30 companies will report and banks could see a revenue boost a provision risks. byd carmaker is one to watch.

investors will be keeping and i out for the potential of price through from price hikes. and we will be listening to commentary about the global energy crisis. daybreak asia is just about done. at coverage continues. -- market coverage continues. moving is a handful.

no kidding! fortunately, xfinity makes moving easy. easy? -easy? switch your xfinity services to your new address online in about a minute. that was easy. i know, right? and even save with special offers just for movers. really? yep! so while you handle that, you can keep your internet and all those shows you love, and save money while you're at it with special offers just for movers at xfinity.com/moving.

♪ david: this is my kitchen table and also my filing system. over much of the past three decades, i have been investor. the highest calling of mankind have often thought was profitability. [laughter] and then i started interviewing. i watch your interviews. [laughter] i have learned in doing my interviews how leaders make it to the top. >> i asked him how much he wanted. he said 250. i said, fine. i didn't negotiate with him.

i