shery: welcome to daybreak asia. i'm shery ahn in new york. sophie: we are counting down to asia's major market opens. haidi: our top stories this hour -- asian investment -- investors look ahead -- evergrande possible against payment in months as -- bitcoin and either

hit all-time highs, tim cook says he's a crypto investor and apple is looking into digital currency features. shery: we are getting the jobless rate out of south korea coming in at 3.2%, edging higher from the previous month of 3%. also coming in slightly higher than expectations, as we see more people getting back into the labor force. we are talking about a high vaccination rate in korea, the loosening of social distancing measures, and more people getting back into the workforce, so that is potentially helping the unemployment rate edged up. this is coming at a time when we've seen the most jobs added since 2014 already. south korea's adjusted jobless rate coming in at three point 2% -- slightly higher than estimates and slightly higher

than the previous month. we have the australian market opening right now. sophie: downside moves in the aussie sector. a soft start here. beach energy that stock gaining ground. tracking the jobs we are seeing in oil with the u.s. releasing emergency reserves. also keeping an eye on iron ore miners in sydney. we see shares losing ground after a five day advance. you see aussie bonds resume gains, keeping low that 74 handle and goldman shorting the aussie dollar against the loonie. that's one of the top trades in light of their bullish view on oil and the aussie dollar exposure to metals.

goldman's revised forecast for the expansion of china's economy has been lowered to 4.8 percent from the initial forecast of 5.2% amid housing, and deleveraging. it is an improvement but it does reflect the lower growth for -- lower growth for longer than tolerated in china. today, we will watch reaction to reports for the rule of bond shorts being relaxed. haidi: a look at what we are watching today. you were talking about the unemployment rate and labor market in south korea starting to see these changes as covid restrictions start to ease. we are expecting to see that play out in australia as well. that's going to have an impact on the unemployment rate. this has really angered the rba

stance. they don't expect to see the inflation target to return to that level for at least two years. they are expecting tightening as early as next year. shery: not only restricted to australia but all over the world. we've seen in the u.s., we are expecting those cpi numbers and we already saw cpi numbers in the u.s. accelerating the month of october. as we continue to see this monetary debate, we have this wildcard with news we had president biden interviewing fed governor brenner as he is contemplating whether to give chair powell another term. his term ends in february and brenner is generally seen as more dovish, so what does it really mean for monetary policy

will be a key issue. haidi: a key issue will be looking at policy reaction ahead of the u.s. cpi numbers. factory inflation in particular. we have seen runaway levels, expected to come in at a 26 year high. all of this, while not having a huge impact on global inflation, that is likely to worsen for domestic chinese businesses. a lot of smaller players struggling with domestic demand and the energy crunch on their production ability as well. we will continue to watch that and look at the widening gap that is expected in china today. shery: let's delve into those inflation numbers, not to mention the much anticipated fed decision. let me start with what is happening at the fed.

what would a new chief at the federal reserve mean in terms of monetary policy here and perhaps the broader impact around the world as well? >> lower for longer seems to be the interpretation for investors. if the white house was to change course as the thinking is, the lift off or interest rates would come later. that is important for emerging economies around the world. you couldn't say jerome powell was in a hawkish stance and some economists say regardless of who is running the fed next year, inflation will set the course and that narrative for u.s. policymakers and no matter how dovish she want to become a curious fed chief would hold the rate steady in the face of quickening inflation. if there is change, it looks

like it will be taking more force. haidi: key to all of that is what we see out of china. it has been a one-way track. enda: this has been a fascinating number all year. the highest since 1995. most reflecting a big jump in prices. of course, it will stoke debate over will producer prices start trickling down? and heading overseas, there's some evidence the price heading overseas because the scale and breadth of price pressures chinese producers are facing, they are increasing prices for

overseas customers. it's expected to be a more sanguine picture compared to the global one. certainly not on the scale we are seeing in western europe or the u.s. haidi: our chief asia economics correspondent there, thank you. evergrande have another $148 million interest payments due following the end of a 30 day grace time. let's bring in our chief correspondent in hong kong and start off with what's likely to happen today with evergrande. what we likely to see if anything? >> it is the end of the 30 day grace. and as we saw with the dollar bond coupon payment due at the end of september, they paid in the 11th hour.

on your screen coming up on the left -- saturday, they had the coupons due from the unit that dollar bond holders were not paid. this payment of $148.1 million is due today. we don't have any indication whether they will or won't pay it, but if they don't, they could face defaults on billions of dollars of outstanding payments that are due and as you rightfully said, some of these credit jitters are spreading beyond the junk rated borrowers. they did avoid a default but they have two more coupons due thursday and friday totaling

more than $88 million. so there's tons of stress built up in the property space, but we are already starting to see the credit jitters spread to investment grade developers. shery: tell us more about the impact we are seeing in the investment grade chinese bond so far. >> that is what is interesting. authorities saying they are confident, but the credit market jitters and look what the fed says in their stability report. they are referring to the property market as a risk and i will read one statement from that stability report saying financial stresses in china could strain financial markets through the deterioration of risk sentiment. that is why we've seen china's higher quality bonds suffering their worst selloff in months.

the investment grade notes count for the bulk of offshore dollars and they have widened eight to 10 basis points after widening about seven basis points on monday. so it is definitely spreading to investment grade borrowers. one of their notes had spreads widened by 12 basis points. on tuesday, banks not surprisingly, and let me read this quote from mark reed, head of fixed income in asia -- in that short term, he said we believe some form of government policy or intervention is ultimately inevitable. at which time, chinese dollar bond should rebound at the path of least resistance for chinese credit spreads is wider.

that is where we stand right now. haidi: let's get you to vonnie quinn who has our first tort headlines. vonnie: president biden and is chinese counterparts are scheduled to hold a virtual summit next week, though no specific data has been set. it comes as the two nations spar over taiwan and beijing's expanding nuclear arsenal. we are told the session will not address the issue. a visit to taiwan by a group of u.s. lawmakers is likely to further inflame tensions between washington and beijing over the status of the self-governing island. the pentagon confirms -- they defense ministry strongly condemned the business which says it interferes in chinese affairs. john kerry says he sees the cop

26 producing an agreement on trading rules. a complex set of technical rules still needs to be hashed out. carrie played down expectations for a grand statement on climate and bashan but says he remains optimistic terms can be met. >> i am making sure we are continuing with fusion and pouring are efforts into research across international lines and i am confident we can get there. human beings created this problem. human beings can solve it. vonnie: global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: still ahead, we assess the outlook for cryptocurrencies with bitcoin and ether hitting an all-time high. plus china inflation could hit a

20 year high as we assess the outlook for chinese economy with that he said. this is bloomberg. ♪

haidi: let's check in on the crypto space. the biggest names coming off their record highs we saw earlier this week. we heard from tim cook weighing in on crypto, saying the company is looking at cryptocurrency features without elaborating on what that might entail. for more on this, katie stockton is the founder of their leave strategies. when you look at some high-profile names in the business community weighing in, is this the kind of positivity required to take crypto to the next step of mainstream

acceptance? >> i don't think it's required, but i certainly think it helps. bitcoin and altcoins seem to have momentum and that can't stay there -- that can stay there but when you see the headlines and still see a positive reaction, that tends to be a positive. we have new all-time highs by both bitcoin and ether and there's not much you can imagine better from a technical perspective. haidi: take a look at this chart that looks at market capitalization. $3 trillion when they talk about bitcoin and a theory them. what we tend to see is the fallback multiple times in the past. what's next driver for the next consolidation level forward?

katie: the charts don't answer what the driver will be, but it can help you scan the prevailing trends. we did see bitcoin pause around it's springtime high. that was a resistance level just shy of 55,000. now there is a break we call pending confirmation. when we see rake out on charts, we like to see them confirm not just in price but we like to get a couple of solid closes above certain levels. that confirmed breakout for ether would say the current trend will maintain itself close to $6,000 and for bitcoin, you can see that same confirmation next week and that would yield a long-term measured projection.

it doesn't mean we won't see short term on the way there. shery: how is bitcoins rally compared to ether in the long run? katie: ether is seen as the long-term runner. we look at relative rotation grabs that we get in the bloomberg terminal and that helps us identify shifts in market leadership. we've seen some outperformance from bitcoin but it tends to be the more defensive or defensively acting cryptocurrency, largely because it's the first to the market and has the biggest following. it's seen as may be a little more boring. consolidating forward the cryptocurrency broadly, that's when you tend to see bitcoin outperform, it seen as a bit of a safe haven but it does suggest

ether is the winner. shery: there seems to be a broader fear of missing out in this rally but this is coming at a time when you see china's blanket ban on transactions and mining, focusing on developing their digital currency. once we have more central banks coming forward with their own digital currencies, what will the market dynamics be? katie: it is high-risk, high reward at this stage in this marketplace which is relatively new and that is where the fear of missing out comes from. it feels like we are on the cusp of something big and people want to take advantage of that, naturally, that they are more willing to chase that uptrend that as the momentum already fueling it. we can't really predict using the charts, especially how any of this will impact a market -- i think the markets have shown to be resilient.

it cracked a stage that was significant in percentage terms and more than a full recovery of the losses once the market absorbed the news that drove it. i think the resilient market, a very early stage market and folks are willing to take the risk. it's going to be a matter of finding the right altcoin for those looking beyond bitcoin and finding the winners among the large swath in the sector. shery: always great having you on. thank you. let's turn to oil -- prices jumping in new york after the white house said it would not be announcing the release of strategic oil reserves but at least not yet. su keenan joins us with the latest and there's growing speculation that biden has taken this option off the table. su: a view that he has taken

that top off the strategic reserves. they had been warned the upside and oil had been limited by the fact that u.s. might cap these reserves and put more oil on the market, so news this is may be off the table has oil on the run once again. nymex crude up almost 3%, almost another percent in the asia trading section -- trading session. a big move as west texas intermediate and brent approach the mark. the catalyst for the white house decision, also a forecast that oil prices would be moderating, so the white house said it would not be announcing an oil release at this time. analysts confirm the report is dovish and does not support an spr release.

so that is where we stand right now with that option. meanwhile, the market looking ahead to the weekly inventory report. people say it shows u.s. crude supplies l last week by 2.5 million barrels, so that is another bullish factor we could see going into the wednesday trading session. prices have been skyrocketing with a global economic recovery boosting demand. opec-plus was deciding on its monthly output -- they are holding two very modest outputs and some analysts say we could see oil spike to $100 in 2022. that slight possibility. haidi: in the meantime, a drop in prices? su: we are seeing prices down --

this as we have had a moderate forecast for the fall weather. that is mainly used in fuel burning scenarios and factories, so bottom line, what we have is lower demand for natural gas and a big focus on that inventory report. traders, analysts and brokers are betting that report will show a big build up and supply as well. that is a bearish factor. haidi: su keenan late -- with the latest on the oil patch. we have more to come on daybreak asia. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. tesla extending on mondays drop and cutting almost $200 billion

from its valuation. the selloff came as it was revealed elon musk's brother sold shares. that was followed by a report saying they were selling stock to cover debt. tesla has held above the $1 trillion in market value. any the makers had to be expanding shares and will sell 100 53 million shares, up from 135 million shares. that company is guiding potential investors that it is likely to price above the range, between $72 and $74 apiece, making it the seventh biggest ipo on record and can value the company at $70 billion. sales for india's biggest ipo --

the contrast with strong demand from anchor investors. some analysts are raising concerns about their profitability. much more to come on daybreak asia. this is bloomberg. ♪ rg. ♪

>> consumer confidence recovery on foot here in australia. the consumer confidence is engaged coming in at .6 of 1%. the index when it comes to the headline number at 105.3 stronger than the 104.6. and major cities including here

in sydney and melbourne. well in the meantime, we are continuing the fallout from ships, to toys, to coffee. we go to the latest. >> these are the top stories. on the semiconductor front, t.m.c. is expanding to japan. the chip maker will build a plant there with the help of sony and governments are trying to boost manufacturing capabilities and shifting to china where inflation numbers. october factory numbers and are rising at the fastest price and amid the commodity boom. and a spike will impact businesses and battling weak demand. president biden spoke with the

c.e.o.'s of companies critical. wal-mart, fed ex and target that store shelves will be stocked for the holiday season. ongoing supply chain disruptions and higher food and energy prices may have contributed to the highest inflation since december of 1990. october data and the headline figure is forecast to have jumped. and bloomberg terminal users can read about those stories on n.i. trade ml. >> china's consumer price numbers. our next guest says could be difficult verging from the u.s. federal reserve given a larger outlook.

let's discuss with betty. betty, always great having you with us. what are your expectations and when can we expect that quarter century high-inflation numbers from factories spill over to consumers? >> we look for higher numbers in october. [indiscernible] >> and oil prices. but of course, we are not too concerned about it in china right now because we face that and china inflation.

and so probably going down afterwards. and c.p.i. inflation and the up trend momentum is unlikely to crease for a long time. and will not have a long lastin- >> we will see the divergence in central bank policies and what will that mean of repayments of companies in china? >> yes,. >> this is traditional monetary policy. the major role which was taken by the development is that of central bank.

to manipulate policy. and the price in china cannot be addressed but caused by structural issues. we do think that china will be more targeted of that broad based or adjustments. >> we are seeing these numbers. look at this chart that that is negative for the first time in six years and you have followed this property market story and this is an unusual. is this linked to concerns over the broader companies with with what's on going? >> i think the market and to be

a broad house and china has been heavily relying on these sectors rittenhouse and financial sectors. and currently the trend is not only limited to developers but to factors and also the contracting home sales. all this is warning signs and japan asset prices in japan back to the 1990's. that follows a prolonged environment in japan and we have not seen addressed yet.

and we do think that it is key to watch for. and i see the deteriorating and and contracting so these are some warning signs. >> what does it mean for the world bank. china is still in china. what does it mean for the consumer consumption power if we see that deterioration in property? >> it is key as i said in japan. and could be a broad based economy and prolonged inflation. if it persists that could devalue the wealth of households

and making households and bore to repay their debts. >> betty, great to have you with us. we will have more analysis on china. jacqueline joins us out of beijing. the bond selloff is rising to a record. and is there any way that investors are seeking shelter? >> they are providing shelters-h the chinese bank bonds over the past six months right on this chart is second best in property bonds, the blue line. this performance, we could see is a vote of confidence in the financial system. this is after lenders rising

default risk. and relatively stable but ultimately there are concerns for china's banking sector given the risks of default. >> coming up next, general electric splitting into three companies. we hear from the c.e.o. about his career-defining move. this is bloomberg. ♪ ♪

>> and two-way radios. tim cook said the company is looking at features but has no plans to have crypto. cook told "the new yorktimes" conference he owns some crypto currency but no plans to invest apple's cash.

and including square. >> general electric formed three separate companies after years of retrenchment and positive reception. the chairman spoke to us and gave us a bit more detail about his plans. >> the board and leadership team are firmly of the view on three distinct bombs, these businesses will be more focused and greater level of accountability and sharper flexibility and will be good for the team. the team we have today and the team ta will build over time, we know that today's markets are more mission and purpose-driven and stand up to new boards with directors and end up with

investor bases those that are underinvested and put that together, this is the best path for us to unlock and create value going forward. are are there is no such thing as a free lunch. you have to pay something to get anything and there will be benefits ta will go through. are you giving up some things? for example in some of the research on new hydrogen-powered turbines, are you giving up some of that? >> for the last three years and and every day and we enjoy those today in certain places but running the company. not at one g.e., but the 30pnl's

that compete in the markets. if there are sin energies, we will work to continue those but the vast majority of the benefits will come from focus. >> why are you doing it now? why not a year ago or two years ago or a year from now or two careers from now. >> we had to take care of the balance sheet and $75 billion and needed to strengthen our core operations and what we will do in our adjusted cash flow, they needed to be in hand before we could entertain a question like this and helps being on the other side of the pandemic but also our customers want g.e. at its best and focus on them, whether it be our utility customers dealing with the

energy transition our air framers and airline customers dealing with the post-covid and everything in health care. >> what is going to happen to the logo? who is going to get that? >> i think everybody wants to make sure she hang on to their part of the brand. the mono gram was evaluated at $20 billion. it means a tremendous amount in each one of these markets. we don't have a definitive brand plan today. we will work through that in the months to come. every business will share the g.e. heritage. >> you have an awful lot of things to work out. but one thing that has been a significant factor for you is legacy long-term contracts, where are those going to go? >> our long-term insurance businesses will stay with the

core corporate entity which will be g.e. aviation. g.e. is at a corporate level will retain and aviation and our long-term insurance operation in addition to some other entities. >> my favorite show of all times is coming back for a second season and i'm talking about "squid games." you know how i feel about the show. there is enough demand. everybody loves this show and coming back for a second season after saying they wouldn't have another season. he says he has no choice given its popularity and netflix will be happy. and $900 million in value?

>> regardless of what the critics say, the fans will still love it and demanded it comes back for a second season but, yeah. i have watched the whole thing and struggling to think of what they could do for season two but curious to see. gaming is underway and the apple payment system. a lot on going with netflix but the thing that grabs the headlines and continues to push forward interests your favorite series of all time. [laughter] >> looking forward to it. i'm happy when we have something to watch. netflix, hollywood you -- hulu.

turn into bloomberg tv and bloomberg radio and in-depth analysis. ♪

>> counting down to the start of trading in tokyo and seoul. in korea, the job less inched up largely driven by increased labor force participation. and the prime minister will be meeting with the u.s. commerce secretary in washington. another busy day when it comes to earnings. and over in japan, the bank is restructuring after losing billions of dollars. and the mood among japanese margins at its highest in seven years, business people are welcoming a sharp decline. and we will be watching nissan, and raising its outlook.

>> we continue to watch that grace period for coupons. and electric vehicle disary. disary and we have recently seen shares are doing pretty well in terms of the reception of two models of their car brands being included. there has been perhaps a little bit more positive momentum and they will be raising 500 million hong kong. the company saying they are using those funds to go into production for new energy vehicles within those groups. we remain and so, what is

driving this? >> this was a positive surprise. nissan reported a profit and a forecast that was above estimates. and behind that, there is concern with nissan because it hasn't been opened how much it was losing to trip shortages that are hammering production in the auto industry right now. those production cuts that were forecasted and still forecast for the year to 3.8 million cars. and greater cost cuts to help offset that volume loss and straining phenomenon in the car

markets in that because of these production cuts, supply is not able to keep up with demand and every car that nays awn sells is getting lowering incentives. so there are better margins on cars and cost-cutting initiatives are looking to offset that. >> can we expect this to continue and what does it tell you about nissan going forward? >> on the upside there is more confidence coming from nissan and will climb out of the red for the first time in three years in july, it will return to profit and has more a bright outlook. with that being said, these conditions are in car markets

and supply will catch up with demand and auto makers are going to be looking to increase their output as these shortages ease. and putting out 12 new models as part of the turn-around plan. whorn the vehicles can bring in high margins and sell well as the conditions become more competitive going forward, that is a major challenge for nissan going forward. >> and here's a quick check of the business flash headlines. tkmc will build a plant in japan with the help of a sony subsidiary. and sony will invest $500 million for a less than 20%

stake. it has the support of the japanese government. >> and lower coin prices in a letter to shareholders. improves meaningfully linked in the quarter. coming up. we look ahead to earnings. and one of two analysts. and ahead of equities. ♪

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.

>> welcome to day break asia. >> looking at the major markets, our top stories. asian investors look to inflation numbers hitting a 26-year high. and biggest payment 148 million

of dollar bond coupons. and a strict decline in sales growth. and start of trading in tokyo. benchmarks. and looking to extend losses for fourth day potentially and cash trades. the yen and this as bloomberg. you have the yen and pushes through 112. when it comes to this and confirms a $7 billion plant in japan and advances losing ground

and losing about .4 of a percent. and radar as well. and and turning to south korea. and ahead of that. losing ground. and just a little bit of against the green back this morning and this as we digest the latest. and people return to the job market. and bounce back and and while we

are seeing bonds just ahead of jobs at the bottom of the hour. the australian dollar that is goldman top trades. and the bank has lowered 2022 for china to 4.8% and i see to deliver it and the rest of asia and china's inflation data. >> europe and japan and u.b.s. wealth management. that's not the case with japan and the inflation so long, how viable are these calls when you have prices continuing to rise?

>> we think -- if you take covid out for a moment in previous cycles and fairly familiar pattern but the u.s. >> and they rotate. and boasts for japan europe. and have been slow in the opening much slower in the u.s. and even july. and europe can open more. and what it means they have the basis easier in the u.s. markets. and there is the opportunity to catch up.

>> all we have seen recently and what does it do to these calls? >> interesting, technically you could see from an earning point of view and devaluation what set in motion. and fairly low and it wouldn't be the first time that we have seen one year if china goes down and catches up again. >> cautious ex poash shore. and first and foremost less

regulation and currency and you cannot lose sight, let's talk about the internet where they have and getting more and more interesting structural stories and you have the generics. and you have -- [snecial] >> outside of china, particularly as we thought see urgency in central bank policy. >> it's a dimension. and focused on equity and that this is difficult. with the divergence of the central banks and absolutely

would play the hawks, if you will. and rethink,ening lapped for example and new zealand. not even so much the data, japan, europe. >> president biden and his chinese counterparts will hold a virtual meeting as they spar over taiwan and finding nuclear arsenal and will not address further conflicts. a visit to taiwan further

inflames tensions over the status of the self-governing island. the defense ministry in beijing should a strong statement saying interference in china's internal affairs. john kerry sees the top 26 or carbon and trading rules. played down expectations for climate ambitions and says he remains optimistic. >> we continue here, we are pouring our efforts in research across international lines and i am confident, yes, that we can get there. human beings created this problem, human beings can solve

it. >> apple c.e.o. they are looking at futures but no terms to and told "the new yorktimes," he owns crypto currency but no plans tore invest apple cash. already embraced by rivals. global news 24 hours on air. >> look at some moves across asia, we are seeing a gain of more than 9%, the third quarter net sales. we just spoke to the president who was president about the of newspaper gains that will will be the catalyst of new growth. think did miss on the full year

and third quarter. it is rising more than 10%. nissan imagining and despite the fact that it suffered from supply chain disruptions and pushing for a turn-around plan for covid and chip shortage. but it was cut, though, despite the recovery outlook given these challenges. nissan imagining more than 6%. beijing's crackdown results. china's latest inflation trends. we report on the widening gap. this is bloomberg. ♪

>> and does fail to pay and will default. and that could cause default and $19 billion and debt. and credit has more room to negotiate for example in this situation and could pegs for a

bankruptcy. >> i think we are seeing the selloff spread out and it is important because it has so much dollar debt. and very, very deep and did it yesterday. when you see that and biggest developers and i think they are we are seeing spreads in the market widening. and earlier this year. that is important and vast majority of the market, 70%.

we start to seeing a benchmark, that does change the stakes for authorities and for investors. >> what else is happening, rebecca? >> the potential the sale of euro bonds. euro bonds don't come to market very often but the finance minister that they accomplished coming out with a dollar bond and seen robust demand. and we are expecting to see it fairly strong. when the market with chinese high-yield developers and still coming out to sell debt as usual on schedule and could encourage

particularly in the euro and we tend to see that and promote issues in the same currency. >> all things china bonds and a lot happening in the country today and expected to rise the most since 1995. c.p.i. in the next hour. our correspondent joins us now and we see this trend. but consumer prices still being subdued. >> when it comes to the china inflation stories. we are talking about c.p.i. expected to come in over 12%. a lot of is down to prices that they plan for commodities and steel, rebar, coal and oil and

that is putting pressures in the margins for small and medium-sized businesses and there was a highlight on that sector. will the c.p.i. slow. and pressure from prices. but the bigger take-away, more contained and consumer prices continue to go through the roof. >> the other interesting chat first time in six years is home prices turn lower. and see deflating. is that a concern and how much is that a loss of confidence? >> it seems to be that a lot of economists are on going the slower real estate to look

ahead. and china is heading for growth and will be part of the work out in the real estate sector and they are willing to take aim and you heard rebecca talk about some of the big developers. there isn't going to be a leh man type moment. there will be a drag on all of the associated industries with that and that will equate to slower growth. real estate between 25% and up to a third of china's real economy and when you have a slowdown, it will have a broader impact and on commodity prices. >> you can get the stories you need to know in your today's

"daybreak." you can customize settings so you get the news that matters to you. this is bloomberg. ♪

>> bit coin has come off its record high for the very first time and this is the recent rounding in the currency sector. and our team has more from singapore. what has led to these recent gains in crypto? >> it's a number of things. first of all, it is looking like a better inflation hedge lately. we have had a lot of people in the sector, who have a lot of

crypto, buying in as opposed to selling they were earlier in the year and there is optimism around a number of things whether elan musk if he is selling shares and so many places including the likes of apple and other and talking about his own crypto currency. there is a lot of talk about it right now. >> what are you watching out for in the coming weeks, then? >> whether bit coin takes off or whether the other crypto currencies are the main driver here. there are so many other kript oos that bit coin is the big one. so sometimes when bit coin is dominant that shows dominance in

the market. so that's going to be interesting, but also and whether they are going to be getting into the n.f.p.'s and adopt crypto and that is a big thing. >> showed interest in crypto. what did you make of his comments? >> apple has not gotten into it as much as some of the other players have talked about it. they would be coming into a space like paypal has made and n.f.p.'s are something that right now we look at them and saying people are playing for million dollars but there is a lot of utility that people are

seeing that and especially on the retail side and it would be interesting to issue n.f.p.'s for some of their products or certain other identifiable things related to apple. >> quick check of the headlines. post-market trading after earnings miss. and third quarter revenue was $2.4 billion. and and lower coin prices. and market conditions late in the quarter. expanding its i.p.o. and 153 million shares up from 135 million in earlier marketing. the company has reportedly the marketing range.

[snecial] -- indiscernible] >> it was revealed in a musk's brother sold it. that was followed by reports that musk may want to sell stock to cover his debt up to 46% this year. annual operating phase to $1.6 billion the car maker had cut it the ship shortage has grown the models and cars and the yen helping to boost the profitability of japanese auto makers. there will be a plant built in

japan which will be a minority shareholder and initial investment will be around 2.1 billion and sony will invest. the deal has the support of the japanese government. >> we are seeing that nikkei by real estate and energy companies and talking about four seeings of losses despite as heidi mentioned and imagining ground as gains in the net income view for the full year. .6 of 1%, lowest level. we did get the jobless rate numbers, a gain of 3.2% and reflecting 652,000 jobs added in the month of october and increased labor force

participation. and unchanged at the moment but a slight rebound from the previous session and seeing losses. .6 of 1%. look at currencies perhaps some of those losses we are seeing could be the strength of the japanese yen holding up that 112th level. and traders are turning it to uncertainty to the inflation outlook as to start the reserve. this is after seeing the best days in about two weeks as traders continuing to reduce their very best in the korean. and kiwi dollar about 71 cent

level. and falling under pressure.

vonnie: this is daybreak asia. i'm vonnie quinn. evergrande signs of a liquidity crisis -- investors are waiting to see if the investor can pay its dollar coupon before it expires on wednesday. san francisco fed president said he expects supply chain

constraints to extend into next summer's fashion summer. he held a virtual meeting and said inflation data is eye-popping but did not offer an outlook for rate hikes. bloomberg has learned a court in myanmar will deliver a verdict against aung san suu kyi on december 14. it will be the first ruling on the charges leveled against her since a military coup. she was detained as armed forces seized control of the government in february. she faces charges from corruption to unlicensed to a radio. claims alexander lukashenko is stoking a humanitarian crisis. polish troops used tear grass -- tear gas to prevent migrants from forming a barbed wire fence. thousands of refugees were found

in the forest with temperatures dropping below zero. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: let's get you straight to the markets. sophie: a mixed session midweek. resuming while in sydney, aussie banks helping offset declines we are seeing on the asx 200. analysts saying the aussie banking sector should get support from rising u.s. yields. we see u.s. cash yield on the 10 year above 145. over in tokyo, stocks under pressure with softbank giving back after monday's rally. more than 4.5% operating income

after net sales beat in the third quarter and it does bode well for longer growth. we are seeing pressure after a 28% drop. in the asia-pacific, we have internet companies providing the biggest and no surprise, -- this wednesday, we get report cards from names like mazda. haidi: earnings reported should help gauge china's regulatory crackdown. our next guest has a ranking for

tencent and the main concern is online advertising. joining us is the managing director of eight -- i is the advertising piece one investors may not be paying attention to? >> a lot of investors pay attention to the online gaming business. actually, 10 sent has found new games launched in the fourth quarter and that's fine. but it is a business that is difficult to track. my understanding is there has been some luck because there's no data protection policies and seeing competitive pressure from other short video platforms. that is where i have cut my

forecast on their advertising revenue in the second half of this year. haidi: how much further downside is there from the regulatory aspects? >> i think it depends, but in general, i would give that the regulation comes to a new norm. i think the psychological impact will not be as harsh as it used to be. a lot of regulations are coming in august or september. i think there are still some policies but the impacts should not be as big as it used to be. but it also depends on the

sector. for example, online gaming. i think you will see reducing of the regulation but the online advertising, you will see the policies have impacts coming to you and it's mainly happening in the third quarter. you will see impacts from the third quarter earnings. shery: what are you expecting in terms of the share price? it shows how much they have been under pressure given the ongoing regulatory crackdown. >> our price is 440 six, very close to current half price. -- current price. the price is just one fact but the other fact is whether

internal issues have been solved. regulation, this is more easy to resolve. but for tencent, there are internal issues. the traffic quality and low conversion of traffic. also the video app, compared with their competitor, it is more difficult to be resolved. shery: would you recommend investors to wait to get into the action? what would be positive drivers for this company? >> i would suggest -- tonight, they are going to release the third quarter result.

i think wait and that mainly refers to advertising. people could start to look at some policy things. they have a new game launched in the third quarter which is very successful in terms of generating revenue. but i think people could take a look at the global expansion. they invested a lot in overseas studios but gaming is a business that usually takes two or three years to develop. you are not going to see immediate results from that. shery: always great getting your perspective. thank you. you can turn to your bloomberg for more on tencent results.

this is bloomberg. ♪

>> we are pouring our research

across international lines and i'm confident we can get there. human beings created this problem, human beings can solve it. shery: john kerry speaking to bloomberg in glasgow. the hong kong exchange says the universal founder for esg compliance is needed to combat the rising risk of greenwashing. they discussed the role in a low carbon economy in an exclusive interview far bloomberg live's green summit. >> it is not easy when we do not have a universal standard and climate. it's very difficult. right now, it is not an ideal situation and i hope there will be a universal sense of taxonomy and requirements for different industry. we recognize different industry might have a different kind of

past -- different kind of path, and at least something we can measure against which is comparable and we are comparing oranges with oranges and apples with apples rather than right now it is a whole basket. >> the polluters are the activists -- do we need to do something to discourage listings that go into polluting industries and fossil fuels? >> the first is we can see some financial institutions withdrawing financing for polluters and fossil fuel companies. that would make raising capital not an easy one. at the end of the day, companies would need to have good financials in order to lift so it would reflect on their financial. it is not just the exchange row

to stop these polluting companies but to encourage renewables and innovative technologies that come to the market to help -- for example, the solar. and wind turbines. >> would you loosen are lower the standards for listing these companies? a lot of these technologies are either very expensive or very experimental. there is the profitability that may not even be there. >> we already have a chance on biotech companies and that is a start. perhaps we could consider in the future about other innovative companies as well.

currently, delisted requirement is only limited to biotech companies. >> perhaps in the future. any timeline for that? >> i don't have any timeline at the moment. >> the goals of regulators in being able to police and make sure companies stick to their targets and this goes into greenwashing and people calling what they do green. >> there is a cross department at the government level, a working group that involves the hong kong monitoring authority in the financial bureau as well. on what we can do in terms of

sustainable finance, green finance, etc. so there is across-the-board cross collaboration and a big push for hong kong. shery: that was laura cha speaking exclusively. we do have details including the eurobond sale -- it has holiday $4 billion deal and with all the crisis engulfing the property sector and concern over systemic civility, it doesn't seem to be standing in the way of the demand for eurobond sales out of china because of how relatively rare it is. we are expecting beijing to open up 4.63 billion dollars or thereabouts across three

tranches on wednesday. it will be the first sale since november and it comes weeks after evergrande narrowly avoided default. we are looking to see the size of this order book -- that would extend what has been a strong run of robust demand and show the global hunt for yield as outweighing any concern of the property sector in china. the dollar bond yield is more than 5.8 times the deal for the dollar offering seem last year. a lot of money managers saying they do expect that demand to be there. we will continue to watch as we

get more details but the euro denominated bond sale there being started in china. you can watch us live and see past interviews as well and you can dive into any securities on the bloomberg function and become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. this is bloomberg. ♪

haidi: for chair of the cb supervisory board says -- speaking exclusively with bloomberg, they said the pandemic has spurred lenders into refocusing their business models. >> we should be glad that for the sixth quarter in a row, profits have exceeded expectations, which is good. only at the beginning of this year, banks were thinking they would have achieved the pre-pandemic levels in 2023, so very positive news. the regulation and supervision which has constrained profits, i don't think this is that case but we are applying the same

international standards as the u.s. the implementation in europe has been softer than in the u.s. we speak with our colleagues frequent leanne we came to the shared conclusion that supervisor requirements are in the same book as well. the main driver of the profitability is structural weaknesses -- investments in digitalization, banks should focus on these measures to address these issues rather than complain about regulation. >> and you are saying don't blame us, you should get more lean, get more out there when it comes to digital investment. that is something you would argue european banks are behind? >> to be honest, the pandemic has been a turning point.

there's been a long time in which european banks seem to be waiting and they are rebuilding their margins. i think that they need to take action and we are seeing consolidation, we are seeing in their digital daily lives that they have been able to increase a lot in terms of cost efficiency. not all the banks but some are moving and it could trigger the banking sector. >> the market is pricing in -- the ecb will -- is pushing hard against this idea, saying the conditions are not there yet. at least for the time being. how does that factor in?

the environment is changing. how do you see that in a regulatory perspective? >> the low interest rate environment that has been until the middle of 2020, the positive effect on volumes is more than compensated for the negative affect. it is true that the margin affect that has been prevailing has a negative effect and it is likely to persist for a while. the banks should focus on customization, may be considering consolidation and rather than waiting for something from the space that could help them out.

shery: we will be watching the taipei opening meeting with fei company planning to build a plant in japan. it's a subsidiary of sony. peter elstrom joins us with the latest. how much will this help the global chip shortage peter? peter: this is driven by the history we've seen with these shortages that have hit a bunch of companies, particularly the automakers. that includes toyota and honda in japan where they've had shortages and had to close down their factories or suspend production. japan has been pushing hard to build a more advanced chip plant in the country. they do have a lot of customers

that want to have closer access to chip manufacturing. and to be clear, the plant they are going to build in japan is not going to be the most advanced technology they have. they are going to build a slightly older chip factory with older technology that builds chips but it is very good for the auto industry and other partners, including sony, as you mentioned. haidi: is it a big benefit? the stock has not reacted very positively. peter: one analyst called it a slight positive for sony. sony has to put somebody in to the project. there are additional costs and risks. semiconductor manufacturing has typically been centralized in one location because it adds

efficiency that is why tsmc has always made their chips in taiwan. so for sony, they are getting more security in their supply chain, a plant in their own country and that is closer but there will probably be some additional costs that come along with that. in this time of extreme stress over shortages, this is the trade-off that companies like sony are willing to make. they are willing to pay more to make sure they have more dependable access to some of these chips. shery: we do have an alert on the bloomberg -- an ev maker set to price it ipo at $73 a share, above their raised target range already after having expanded their sales of 153 million shares. sophie, what are you watching? sophie: the ev space, keeping an

ion evergrande and -- keeping an eye on evergrande. and as we get closer to the earnings season, it has been largely disappointing, given lockdowns and power shortages and discretionary has been the biggest missing. but big tech may offer some silver linings ahead of the third quarter. investors are finding some shelter in bank bonds which have taken a hit, facing default risk concerns. we will be watching local media reporting that bonds in china may be loosened. shery: our market coverage continues. standby for bloomberg markets china open. this is bloomberg. ♪

- [announcer] imagine having fuller, thicker,

more voluminous hair instantly. all it takes is just one session at hairclub. introducing xtrands. xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. they're personalized to match your own natural hair color and texture, so they'll blend right in for a natural, effortless look. call in the next five minutes and when you buy 500 strands, you get 500 strands free. call right now. (upbeat music) total gym includes everything you need to get into the best shape of your life. for every body at any age. it works every muscle group, including your core, using your own body weight as resistance. customers love total gym because it's fun, fast and effective. nothing delivers full body results like total gym. and right now you can try it risk free and enjoy special savings too! get on demand workouts free, free shipping and more. call now! yvonne:o

the open of chinese trade. asian investors looking ahead to china inflation numbers with factory prices seen hitting a 26 year high, and evergrande's biggest payment test in months is coming up as the grace period expires on 148 million dollars of coupons. we get a key gauge