>> good morning, we are counting on to asia's major market opens. shery: welcome to "daybreak: asia." the hottest u.s. inflation trend in 30 years is said to wait on agent risk appetite. treasury yields search -- surged across --

u.s. and china promising to work together to slow global warming. immigrant -- evergrande set to avert another default. paul just opened for trade in australia, currently has asked a tad weaker but a few points but we have a staggered opening in austria so we will check back later, big date -- date for data . employment numbers, we are watching the participation rate which has been weak here so that may have an impact on what we see the aussie dollar doing. take a look at new zealand, trading for a couple of hours, continuing to show modest gains up about .25 of 1%, nikkei futures flat and s&p futures trading flat as well after we saw a reasonable amount of

selling for u.s. equities mostly off the back of inflation concerns. superlatives abound, up 6.2% on year, the highest since 1990 and it really did blow past estimates. as you drill into those numbers the picture becomes clear with food up 5%, gasoline up 6.1%, fuel up 12.3%, the most since 2007 and this is putting pressure on the fed narrative. so when the observation that these numbers are vibrating -- shery: it means more pressure for president biden who is trying to pass that spending package. tensions seem to be easing with the u.s.'s biggest rival china.

we are hearing president xi jinping and president biden are sent to hold a virtual summit, ties quietly improving despite the fact that we continue to see tensions over taiwan and beijing's expanding nuclear arsenal coming at a time when this week the communist party just held an event. paul encouraging signs out of the final day of cop 26 in glasgow. there was a surprise announcement that the two plan to work together on climate this decade. china and u.s. calling it an existential crisis which demands cooperation. got a few comments from scott morrison, he said capitalism can do a better job better than

government. we do have an election in may. the prime minister wants to shore up support. shery: politics playing into those crucial talks. we are joined by jack fitzpatrick. president biden raising inflation is a key concern for the white house. in his news conference what did you talk about? >> you spoke -- he spoke generally about the ways in which supply-chain issues and bottlenecks have contributed to inflation lately. he addressed the fact the u.s. has taken us has taken a strong approach with fiscal policy to responding to the recession induced by the pandemic and

defended the policies the administration has push so far and emphasized that in his words and infrastructure bill should have an anti-inflationary effect. that is much more of a long-term issue rather than anything that would have an effect over the course of the next year. he tied those two things together and thought to defend the actions he has taken but largely pointed to supply-chain issues rather than his own policies as being responsible for the inflation we have seen. paul: a very strong inflation print over the united states. yesterday we had the numbers and china as well. at what point does this demand a policy response? >> [indiscernible]

clearly u.s. inflation is more broad-based than initially inspected -- expected even for the fed. that is impacting everything from food to energy over there. there is a takeaway not just for the fed but global central banks. a lot of policymakers have been banking on the idea that these inflation pressures would be transitory. here we are now a couple of weeks after the fed again saying they will not raise interest rates. that will test all central banks around the world betting on the fact that inflation pressure will dim over the coming months, and as we head into the early part of next year it will mean a material turn for the global policy cycle. paul: i mentioned earlier there were some signs at the end of

the climate summit. his climate one thing the u.s. and china can agree on right now? >> you would certainly expect the president to bring up with president xi pushing for international action on climate change. there are some political difficulties in the u.s. as we get closer to a 2022 midterm not looking good for democrats where there is a lot of pressure on the democrats and all democrats to take a hawkish tone on china. with president biden looking to put a spotlight on the u.s.'s international leadership on climate issues that it clearly is something the biden administration has sought to play up. shery: china facing its own domestic issues, especially with the property sector. what is the latest on

evergrande? >> they have made a payment on $148 billion bond. they have missed payments on a dollar bond. that might take off near term concerns and the credit market but the bigger picture, there are individual real estate developers that remain under considerable pressure, and the broader picture of china's real estate sector being under ongoing pressure. economists are starting to identify the slow down in china's real estate sector given what it means for commodities. this is a near-term relief, but

the broader picture of ongoing tensions in the real estate market is not going away. paul: our guests. let's get to vonnie quinn. vonnie: the u.s. secretary of state antony blinken says allied nations are prepared to react if janet uses force against taiwan. it is unclear whether a buying lead response would involve the military. speaking in a new york times conference someone added they do not want an interruption to the status quo. chinese president xi jinping is set to deliver the first resolution on communist party history, giving them the mandate to rule for life. the party wrapped up a four day meeting.

only two others have altered historic resolutions and both used their works to dominate party politics until they died. the european union is said to put on a temporary waiver letting has so many managers to play trade in the united kingdom. europe has been pushing for more financial activity to move into the bloc. officials decided the existing timeframe was too short. the length of the proposed extension is still unclear by that is expected to be revealed early 2022. wall street is warning of major job cuts ahead. almost a quarter of financial services companies plan to reduce their staff in the next five years. a survey found that was the highest of any industry. wall street firms are increasingly relocating to lower cost of patients. banks are ramping up automation and other technology.

global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. shery: our guest joins us to talk about finding emerging patterns in markets. he shared strategies for long-term investing in our new bloomberg wealth segment. we discussed crosscurrents keeping trading choppy with our guest. this is bloomberg. ♪

>> inflation is high. it is eye-popping, this is a transitory period, that is what we believe by that is directly related to covid and as soon as we get through covid the better off we are going to be in this economy. paul: that is mary daly talking

to bloomberg earlier. let's discuss the inflation with a senior global strategist at state street. those inflation numbers are will blowout -- real blowout. where do you want to be at where do you not want to be? >> certainly transitory versus structural question is still in play. we are of the view that like president daly it is going to be transitory. we have priced in as much as weekend with the fed, so i think rates at this point are going to be relatively stable from year -- here. as long as the entrenched view is in their risk is supported. if this proves incorrect under the fed has two i earlier -- hike earlier than june, various

parts of the cyclical discussion, the technology discussion within the equity markets becomes more of a challenge. longer duration becomes a bigger risk because it has been an anchoring of long-term yields that is kept a lot of the risk complex fairly stable. paul: there is a diverse range of opinions and you are at the conservative end of the spectrum. markets are pricing in five rate hikes between now and december 2023. where do you put the risk of policy here? >> certainly five rate hikes within the next two years is much more than it was six months ago. if you were to pull the chart further the number of hikes after the five are not significant, which means yields

remain well anchored. in an environment where inflation is expected to take slowly back down to normal, yields remain low, which remain supportive of risk assets. shery: what happens to the inflationary outlook if we get the bigger $2 trillion spending package. this would come at a time when we have probably more volatility given that the stopgap funding measure will run out in december. >> the bigger stimulus package ironically will not have that big of an impact on your term inflation. if anything it will close the deficit earlier. more importantly it is over a 10 year period. we are dealing with covid related issues, we will note within the next two or three

quarters how much of these shortages and supply chain issues remain, and hopefully by then we will be looking at covid in the rearview mirror. shery: there is been a lot of speculation about the reappointment of fed chair powell. what are your expectations on this front, and if we do see a change at the helm will that have a meaningful impact on fed policy? >> i still think powell is going to be reappointed. i think it makes sense. there are enough things going on with regard to policy and inflation that the continuity makes sense. it is the more progressive part of the wing pushing harder. there are ways around it, and having her get involved in bank supervision.

if we are looking at inflation numbers that do not back off the way every fed member is saying they expect you to back off of the most part i do not think there is much policy choice for them to make. they are still going to be guided by the mandates. if the prices are unstable while the jobs market is improving and continues to show gains the fed's hands are tied in terms of what it should do next. paul: as we drill into those numbers we see big gains for gasoline prices, fuel, oil as well. when do you see those pressure starting to ease? >> we are seeing energy prices stabilize a little more. the way i look at the other contributors, it has been shelter, energy, and food. each one of those is a tax on the consumer. most americans need to put gas in the car, they obviously need

to put food on their table and they have to pay rent. if those prices keep increasing it will have an impact on the consumer discussion. hopefully when we get past the shortage issues we will see how the consumption demand starts to affect prices that look a little more normal. i would expect some of the energy prices to stabilize as we go into the beginning of next year after travel that occurs during the holidays. shery: it was great having you want as always -- having you on as always. get around up the stories you need to know in today's edition of daybreak. you can customize settings so you only get news on the industries and assets that you care about. this is bloomberg. ♪

shery: i check out the latest business flash, general electric is offering to buy back 23 billion dollars of bonds and one of the largest corporate debt buybacks ever in targeting a series of bonds maturing through 2050. the company is on track to cut $75 billion of debt in three years to boost cash flow and profit margins as it pursues a massive restructure splitting it into three businesses focused on health, aviation, and energy. credit suisse and ubs have stopped assessing the bonds of growing developers as collateral. sources tell us private banking clients can no longer use dollar debt issued by evergrande. the financial stress has spread to the industry, triggering bond losses as both junk rated and

higher borrowers. almost a quarter of financial services forms are planning to cut their workforces in new york. let's get the details from sally. what happened to new york city as a financial hub? >> that is right, 22% of financial services forms dissipate a in jobs in new york city, and that makes financial services the industry with the greatest losses. wall street has been moving staff and offices to lower cost locations to places like florida and texas. others like vanguard and charles schwab have plans. automation and technology would enable them to cut staff, and if you look at the industry more

broadly this is note new cry. wells fargo analyst predicted in september that technology and automation [indiscernible] to cut 100,000 jobs over the next five years. paul: what are the implications for commercial real estate around the area and all of those businesses in the area as well? >> is going to affect areas where people are going up to get their lunch and other services. they spend more on technology then any other industry. that extra spending is supposed to drive down cost. while it might be bad for job prospects it could make them cheaper for consumers.

if you think about the ecosystems around where these business are produced, you can anticipate impacts their, and added into all of this are the pressures on compensation. banks have talked about earnings and wage inflation. they will trim the workforce where they can. paul: sally bakewell there. -- s emerged as one of the fastest growing and most disruptive players in markets. the cofounders explained their business model in an exclusive conversation with erik schatzker on front row. >> we fancy ourselves a bit like silicon valley, but it is that we modeled our business after

silicon valley, which is to say those disruptors, they identify a large market that was not being fully or properly served and say i am going to provide a security solution. we managed primarily permanent capital vehicles, so we have an entirely different offering to the issues of capital. we can provide different duration and structures from anybody else. we said there is a chance to be that descriptor, and we purposefully built a business model that looked a lot more like a tech company than financial services. we did not start and say our base model is a bank. how do we become a better bank? we stood by saying here is a necessary service, and if we can do a great job delivering that product we can earn attractive returns, and our business attributes, and this is an important point, we looked a lot

like a sas business and people do not map technology to wall street, but we have done this consciously. >> where businesses are set up to deliver to our end anticlines a certain set of services, but if you held our income statement against any other company you would be surprised how similar they are. i growth, high revenue, i margin -- high-growth, high revenue, high margin. shery: this is a picture across currency markets, the japanese yen falling, stopping four days of gains against the u.s. dollar. we saw a bit of risk on sentiment but around that one month high returning to the $112 and $114 range, a holding around levels as we continue to see yields rise in the u.s. and the dollar jump higher.

we are going to see out that is going to impact the stock markets as we come back from this break. plenty more to come. this is bloomberg. ♪ 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 are tracking the fallout of the global supply chain crush. these are the top stories. president biden touted the fallout -- i should say, the soon to be signed infrastructure bill in his trip to baltimore, saying it is part of his plan to return the economy to normal. he intends to highlight upgrades to the port which is marketing itself to the world's largest container vessels. we are watching how the crunch

is impacting earnings. disney cfo sees supply chain impact on its auto and tech ads. the effect was more pronounced in the -- business. the company's share price tanked the growth streak is ending. it blamed its woes on supply snags and labor shortages. bloomberg terminal users can read more in our newsletter. that is on -- back to you. >> rivian raised $11.9 billion after investors piled into the biggest trading day boom this year. the ceo told bloomberg how the company plans to use the proceeds. >> we have to electrify the entire fleet. we have to replace in excess of -- vehicles with electric vehicles. the scale of this is in some

ways unimaginably large. it is going to require multiple companies building multiple portfolios of products that capture the market in different forms, factors and segments. we are focused on that. we are focused on making sure we have the capital to continue scaling the business to build capacity for future products and continue to develop future products. we are striving to help drive and lead this massive transition. >> bloomberg reported they are in talks with the city of fort worth to invest $5 billion in a plant there. you are looking at potential sites for a plant in europe i'm a what is the update on those leads? >> we have not made any updates. there are certainly lots of speculation, but these are important decisions. for us, it comes down to looking at the ability to recruit a team

to help drive and operate these facilities. looking at the pool of talent in these dental locations as well as access to supply chain. what the logistics look like to bring components in. >> on the supply chain, you delayed production on the r one-t. where are the pressure points? is it in semiconductors? rising commodity costs? labor? where are the chokepoints? >> the biggest challenge we have, and i would say broadly across many industries, is the health of the supply chain. if you think about building a vehicle like this, there's around 2000 parts that come from suppliers. this is a situation where a 99.5% is not good enough. meaning, if 99 point 5% of the

supply chain is ramping at the same rate of our production, but 0.5 is not, that puts constraints on how fast we can build. that is part of the world of managing with organizations to make sure they keep up with our ramp. that is a major focus and we are fortunate to have great folks on the ground working with suppliers, making sure we -- >> rj scar and -- talking to ed ludlow. tesla shares right now gaining 2% after elon musk filed a form four. we found out he sold shares to satisfy taxes. he is just months out from a deadline to just -- stock options that if he does not use

he would lose. if he does exercise his shares, he is going to face a big tax bill. either way, he would have to sell a bigchunk of his shares. [no audio] shery: we know he is facing a big tax bill as he must be exercising those stock options. elon musk exercised 2.1 million options at $6.24. let's turn to china. a year-long crackdown on the tech industry is taking a heavy toll on its most valuable company tencent. the gaming and social media

giant posted its slowest pace of revenue growth since the company went public 17 years ago. let's bring in our correspondent stephen engle. what stood out for you? >> we are one year into this regulatory crackdown on all big tech, not just tencent but alibaba. it is impacting advertising sales. tencent admits pricing power for advertising will remain soft for several more quarters. it is affecting industries that have been hit by regulatory actions whether it is gaming, insurance, education which tencent has big interest in. that is going to weigh on ad revenue. this on top of gaming operations , hit by a moratorium on approval by new games that has been in place since july. the company says that is likely to be temporary until the regulatory environment eases.

we do not know how long the regulatory environment will stay stiff as that is. bloomberg intelligence says with the economic situation worsening, we expect more pressure in the fourth quarter and beyond. 13% overall gain in revenue, the slowest pace we have seen for this once juggernaut, china's most valuable company, the slowest pace of growth since 2004. i remember sitting somewhere here in the bloomberg building talking about that ipo. it has come a long way. hitting some stiff headwinds right now. >> revenue growth is slowing, but tencent still has a pretty healthy balance sheet. how long is this pressure likely to last? >> how long is a piece of string? we do not low -- we do not know how long this pressure will last. whether they will ease up.

tencent feels these regulatory pressures could be temporary, but they did say in the past, the president and other executives have said compliance to regulatory changes is their lifeline. they do have the bread and butter games like league of legends mobile launching in china. they have a successful e games tournament. they gaming side has a good pipeline still to come. once those regulatory approval games -- they had a similar situation in 2018 come out of strong. the big uncertainties are on the fintech business and we chat. what is going to happen to regulation on that as far as being regulated like a bank? what is going to happen to their data security? data is perhaps going to be

nationalized and folded into a company with oversight by the government. that is a big trunk of their business -- chunk of their business. fintech and openness of the platforms. the platforms are being ordered to essentially allow others to search we chat platforms. that benefits baidu to the detriment of tencent. >> stephen engle there. let's get the vonnie quinn with headlines. vonnie: china evergrange looks to avert another default on its biggest debt liquidity crisis. international clearing firm says its customers have received overdue interest on three dollar bonds. two investors also confirmed they received the funds. evergrange needed to make 140 and million dollars in coupon payments by wednesday before the end of a 30 day grace period. u.s. consumer prices rose at the fastest pace in three decades,

gaining more than 6% on the year. higher costs for energy, shelter, fuel and vehicles fuel to the readings. economists expect bigger jumps in the coming months, putting pressure on fed officials to end near zero interest rates soon. china and the u.s. say they will work together to slow global warming, issuing a surprise joint statement that injects new momentum into the cop 26 climate negotiations. the nations agreed to boost efforts to cut emissions by tackling methane and illegal deforestation. they plan to meet in the first half of next year, focusing on actions in the decade. >> the u.s. and china have no shortage of differences. on climate, cooperation is the only way to get this job done. this is not a discretionary

thing, frankly. this is science. it is math and physics that dictate the road we have to travel. >> johnson & johnson will have its baby powder bankruptcy moved to new jersey. the transfer will -- j&j created a unit in texas, claiming its products cause cancer. it moved the units to north carolina and placed it in insolvency. the strategy has not yet been tried in new jersey federal bankruptcy court. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: this is how asian markets are trading. we are seeing downside pressure with the energy sector and tech leading declines. oil falling. we are seeing a rebound. not to mention concerns of valuation have pushed down tech. we are seeing kiwi stocks at the

moment rebounding slightly from losses we saw in the previous session. nikkei futures down. extending losses we saw in the previous four sessions. watch with open looks like. meantime, u.s. futures unchanged. up next in our bloomberg segment, we hear from ggv capital manager on how to look for long-term investing. this is bloomberg. ♪

shery: bloomberg wealth where we discussed strategies for long-term earning. our next guest focuses on early stage opportunities with a portfolio including 18 unicorns. let's bring in hans tung. you have been named to forbes list nine consecutive years. tell us about your long-term strategy for investing in successful companies. hans: it is pretty simple for me. plan on people. game changers who are about to do things that are digitizing the economy to move to online.

investing in sectors that have an inflection point that is huge growth ahead and ultimately cross-border global potential. examples include in the u.s., airbnb, slack, pella tom -- pel oton. my partner invested in grab. in india -- five other investments, many at the early-stage growing well. shery: all of those companies you mentioned really have boomed in the past few years. digitization, technology is such a fast changing space. how do you keep up with the latest trends? hans: we look at sectors we think are poised to grow fast.

when i first started investing, it was fascinating to see how traditional media was impacted by digital media. it was fascinating to see how retail was impacted by e-commerce. we doubled down on those areas in the u.s. and china. over the years, we started seeing other sectors opening up. education, fintech, health care. as more sectors open up and is more smartphone concentration rate increases in many markets, you see more opportunities for b2b and start seeing more things. you have such a good brand across the board and many of these continents, we have inbound interests, people want to talk to us. we can share -- across these funders. that gives us more signals and other people to choose the best investments from. >> i wonder if you are closely

looking at innovations like blockchain and nft's. or, is that looking like the 1990's d.o.t. com bubble? hans: we invested in 2016. more of an experiment to see how the sector will go. obviously, it has done well. there is a lot of volatility around the world, instability, it makes it easier for consumers, especially gen z and gen y to put more money into crypto is a way to store value. we feel there is the need for investments for sure. in sections more efficient. it makes the economy go smoother over time. right now, there is more hype

than actual end user adoption. it is early, but is definitely a sector we are following and over time it could follow the way of the internet. we remember in 1995, internet had this huge bubble. it lasted six or seven years before it burst. but, that was the best time to be in the internet world and building long-lasting companies. we see a pattern could be emerging in crypto as well. >> when you do identify a quality investment, you are probably not the only one. that can make it expensive. do you find that there is such thing as a bargain? hans: based on my experience, every round was expensive. there was not a round that was not expensive. the difference is if the round was highly sought after or not. when we first invested in that firm in 2018, people would not

-- after they pay from square. when we invested in pella tom, -- over time the company evolved and showed that they are more than what people thought they were and ended up having appreciation. now continuing to partner and expand and can ask acute and fundamentally are in markets with huge sam. if the growth is there, if you look back, the valuation we pay to get in is not expensive because growth took care of that. if they are not growing fast, it looks expensive. good deal, met -- bet deal, most are expensive. it is not an issue if the price is reasonable, it is about picking the right team. shery: you have picked many good teams, hans tung. ggv capital managing partner.

you can catch more at 7:40 a.m. hong kong time every thursday. we have an alert on tesla. we have seen that after hours trading send the stocks higher after we heard elon musk form filing included him exercising 2.2 million options at $6.24. also, the form showing he sold 934,091 shares on november 8. this, given he does have tax implications with some stock options he received years ago. we have also breaking news out of japan. we are getting the producer price numbers for the country rising 8% year on year. the estimate was for a 7% gain.

when it comes to month-to-month numbers, 1.2% gain. much higher than analyst expectations of growth of only 0.4%. we are now seeing this inflation being felt across japan as well. not surprising giving we have seen a weaker yen inflating import prices. commodity prices have also risen , pushing inflation higher on the back of factor inflation being higher in the u.s. china coming in on double digits . really going along with the global trend of higher inflationary pressure, especially on the industrial side of things. >> you can hear a lot more on that inflation story and much more on bloomberg radio. hear more from the days big newsmakers and get in-depth analysis from the debris team broadcasting live from our studio in hong kong.

you can listen via the app or bloombergradio.com. stay with us. ♪

>> a quick check of the latest business flash headlines. disney missed forecasts for streaming sign-ups in the fourth quarter as 2.1 million new customers joint. the company wants to hundred 60

million subscribers by 2024 as it doubles down on the platform. it has not yet hit -- a disappointing quarter as profits fell across film and tv businesses. $.30 a share for the period, below estimates of $.49. china posco crackdown on its tech industry taking a heavy toll on tencent. drivers including the meta-verse. rivian soared 53% in the trading day boom before giving up control. the ev tops topping ford and lucid. the listing is the biggest globally this year and the sixth

largest ever on a u.s. exchange. >> we spent years putting this together and what is so exciting is seeing such a diverse group of people with diverse backgrounds and interests coming together to create these products. steny their today looking out at the team as we rang the bell was quite emotional. seeing so many passionate faces, it was powerful. shery: take a look at markets trading in their early session of asia. we are seeing qe stocks rebounding from the losses we saw in the previous session, up .1%. declines on the kiwi dollar against the u.s. dollar after preliminary confidence weakened in new zealand. asx 200 down .7%. this is being led lower by energy and tech. this is not surprising given we have seen energy prices under pressure after we saw u.s. crude stockpiles unexpectedly

increasing by one million barrels. right now, rebounding slightly. nikkei futures down .3%. this as we just got the producer price numbers. it was above expectations. growth of 8% year on year, in line when it comes to global inflationary picture, especially on the industrial side of things. u.s. futures unchanged after falling by the most in a month. treasury yields spike higher. the highest in about 30 years. currencies right now, we want to keep an eye on the japanese yen. it is trading within the 114 range, snapped a four day winning streak but still around the one month high. korean yuan fell the most in weeks and we will be watching as markets open there. a little pressure on the aussie and the kiwi as well. >> is the markets open in seoul

and tokyo. in the bottom of the next hour, unemployment numbers for australia. stay with us for those market opens. this is bloomberg. ♪

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♪ shery: welcome to daybreak asia. >> i am paul allen. asia's major markets have just opened. top stories, the hottest u.s. inflation in 30 years set to weigh on risk appetite. treasury yields sore on expectations of faster fed rate hikes. xi jinping on the cusp of --

with a landmark resolution expected. the alibaba singles' day underway with subdued prospects. tencent crackdown harboring growth. shery: look at the nikkei, under a little pressure, mixed for the nikkei with tech and materials leading the declines. industrials and utilities higher, but not enough to put nikkei into positive territory. we just got the producer price numbers with data coming in above expectations of 8% growth year on year. not surprising given the commodity surge, weaker yen, in line with the global inflationary picture. we are watching the japanese yen, it is around a one month high. returning to our 114 range in the last few days. we are watching jgb after the rise in u.s. yields. we saw the superlong sectors

bought in anticipation but there won't be increase in debt supply for the next year. we will be watching fiscal concerns in japan. we had seen already the worst day in a week. the korean yuan under pressure against the u.s. dollar. not surprising because we had dollar strength with treasury yields jumping across the curve. korean yuan falling for the second session in three days. local importers purchasing the greenback right now. we are of course waiting for more data when it comes to korea on the inflation picture as well as the unemployment numbers. we do have the first 10 days numbers. we are getting it as i speak. let me just tell our viewers, the first 10 days of trade, average exports jumping 14.1%. chip exports taking up -- taking

up 45.3%. imports rising 59%. a very strong trade picture for south korea. paul: some encouraging data there. take a look at australia, they have been trading for an hour. currently weaker by .6%. about .5% now. very much a risk off day after numbers out of the u.s.. that's performing stocks, no surprise gold miners. energy stocks leading the way. ramsey health care saying surgical restrictions and isolation orders from covid restrictions have weighed on first quarter earnings. we will get more on that later, as well as the impact of restrictions on of straley a when we have unemployment numbers for october. those are due at the bottom of the hour. aussie dollar steady $.70

against the u.s. not much change for kiwi. kiwi stocks in positive territory. shery: our next guest says he is more concerned about earnings than inflation. frank benzimra, what is the problem right now with the earnings outlook across asia? who will lead growth in the next few months? frank: what we are seeing on asia earnings is you have -- in 2021, most earnings growth have come from korea and taiwan. you're going to see some change of leadership in 2022 to china. looking at the -- what we see is you have two sectors, china internet and china -- which are expected to -- roughly half of the growth.

this is the question we can have on earnings, whether we can see china, which is slowing down on the wheat re-tightening is not over. whether we would see this kind of growth delivered in 2022. when we are looking at asian outlook for 2022, of course you have inflation in the background and how you are responding to high inflation, but you need to look at the dynamics of earnings in the region. shery: when it comes to inflation in the monetary policy, what sort of policies are you expecting from central banks across asia? of course, they are so divergent and perhaps not really reflecting what is happening. frank: the picture in asia is very much one of emergence.

we have seen normalization happening in korea and india, but we have this growth slowdown in china with pboc expected to be more easy mode. it means that there will be some consequence on the currency. how long are we going to see this trend? this is one key element on the quickie mart. also what it means in terms of implications for markets. looking at the china equity, we are seeing a lot of hurdles, lots of pessimism, but we need to take into account -- which is probably going to go into more easing going forward.

paul: we did here numbers from tencent after the close yesterday. revenue growth continuing to slow there. it tough regulatory environment. is the worst over for tencent? frank: that is an interesting question because we will have most major internet companies in china reporting in the days to come. what we are seeing is while the markets have been under pressure , this is something that could be more widely spread across the internet sector in china. in our own analysis, looking at the factors that the china internet companies are exposed to, there used to be very expensive one. today not yet value exposure to

value is still negative. but we are seeing better valuation. expected growth is something worth noting. we are seeing some very negative momentum. we could see this shifting over the coming weeks. i think the trigger is really when we have a clear sign of regulatory tightening ending. bibby we get some indication with --, but this is still something on which there is little visibility. paul:. enticing opportunities in terms of price around chinese real estate. is that something you are looking at? frank: no. from an equity perspective at least. i think this is one sector on which -- well, we can see some

value on them -- [indiscernible] on china, we remain conservative when it comes to equity. that means we remain invested in the -- invested in -- on sectors which tend to be richly valued, but on which we have better visibility of the forthcoming earnings. paul: frank benzimra. thanks for joining us. get the vonnie quinn. vonnie: china and the u.s. set to work together to slow global warming, issuing a joint statement that injects new momentum into the last day of the cop 26 climate negotiations. the nations agreed to boost efforts to cut emissions including by attacking methane and illegal deforestation. to meet in the first half of

next year to focus on faster actions in the decade. >> the u.s. and china have no shortage of differences, but on the climate, cooperation is the only way to get this job done. this is not a discretionary thing, frankly. this is science. it is math and physics that dictate the road we have to travel. vonnie: antony blinken says allied nations are prepared to react if china uses force against taiwan. peaking at a new york times conference, lincoln -- blinken added many countries do not when i disruption to the status quo. previous administrations have committed only to assuring taiwan can defend itself. all street is warning of major job cuts. new research shows almost one quarter of financial services companies plan to reduce staff in the next five years.

the partnership for a new york city survey found that was the highest chair of any industry. wall street firms increasingly relocating to lower cost locations. banks wrapping up automation and other technologies. the eu is set to put on a temporary a waiver allowing banks and money managers to -- trade in the u.k.. europe had been pushing for more financial activity to move-in, but officials cited the existing timeframe was too short with the current exemption expiring in june. the length of the proposed exception is unclear but it is expected to be revealed in early 2022. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn, this is bloomberg. shery: still ahead, a single day with a difference. we look at this year's prospects for the online shopping extravaganza as regulatory crackdown. alicia yap joins us.

evergrange diverts -- avert default again with another interest payment. this is bloomberg. ♪

paul: reports evergrange has made overdue interest payments. that sets the developer up to again avert default. let's cross to rebecca. this probably is not the end of that, is it? >> ultimately looks more like evergrange has once again made its 11th hour payment and averted official default. that gives them more room to negotiate.

evergrange does continue to have -- through this year and next year it has a hefty to billion-dollar bond coming due. shery: how significant news is this coupled with the fact that we are hearing that authorities may be loosening those regulations on credit access for developers? >> i do not think it is just evergrange. creditors breathing a sigh relief. it looks like we are seeing the first signs of easing, tentative policy easing for property developers. yesterday, china bonds saw their biggest jump in sometime after news that there may be a loosening of interbank bond sales also, speculation there may be more flexibly around m&a. companies acquiring more distressed developments would

not necessarily take debt onto their balance sheet, which can be a massive deterrent to comes to that sort of acquisition activity. these are things that would ease the property sector and it looks like bank ending data to developers also is better in october. all around, some chatter we may now be seeing a bottom and from here things to get easier. it is important to mention that even with signs of loosening or easing, this is not a wholesale reprieve for the sector. ultimately, those big firms, those strong firms -- survive and perhaps take advantage of the weakness across other firms. shery: you will bring us those updates. chinese president xi jinping set to deliver the first resolution

on commonest party history in 40 years, giving him the mandate to potentially rule for life. our china executive editor joins us now. he would be the third leader in china's history to put this forward. tell us a little about the significance of this resolution. what is it? why is it important? >> obviously the other two gentlemen who have had a historic resolution is -- and mao zedong. those are the type of chinese politics in the communist party era of running this country. having xi jinping added to that pantheon gives him a sort of validation that people see him have influence even if he does not hold office in this next term. mao had great influence all the way until the end of his life. having xi added to that group would suggest you will continue

to hold that influence as well. that obviously has huge implications for how china will be run in the future. obviously, one of the harlem marks of xi jinping's policy have been prosperity. we would expect that to see -- we would expect to see that continue broader, deeper and long-lasting. paul: more of the same if xi jinping continues to rule for the rest of his life. can we anticipate policy changes going forward? >> i think you will see policy changes. just as we were talking about, there has been softening of real estate. with energy, china has these contradictory aims to both reduce carbon emissions but to continue economic growth. you will see the same with common prosperity. if execution of that policy creates headwinds for the economy too great for the communist party to take, you

will see some winding back of that strength of those policies. shery: it seems tensions might be easing with the united states. he is expected to virtually meet president biden next week. how significant is this? >> that meeting could be extremely significant. it would be the first summit the two have had. they have had two phone calls already since biden took office. there are so many issues on the table, i do not think there will be substantial improvement in the relationship, though i think having some stabilization will be very important for the world. obvious a, we have had tensions around taiwan, having some understanding about not allowing that tension to escalate or spiral out of control will be hugely important. paul: greater china executive editor john you. you can get a round up of the

stories you need to know to get your day going in today's edition of daybreak. bloomberg subscribers can go to their terminal. it is also available on mobile. you can customize your settings so you are only getting news on the industries you care about. this is bloomberg. ♪

shery: elon musk sold more than $1 billion of share after holding a poll on twitter. the sales purpose was only to be tax obligations. let's get clarity from ed ludlow. what do we know? >> let's be clear. first, why did elon sell shares? the shares of common stock were

sold solely to satisfy the reporting tax withholding obligations related to the exercise of stock options. how many stock options? 2.1 5 million priced at $6.24 per auction. he has these tax obligations and he is selling 934,000 shares of common stock. monday's closing price was $1162.94. median price at that range slightly lower than that. you come out $1 million. those are the facts of this transaction. paul: let's move from facts to speculation. everybody is trying to tap elon musk for money. that's twitter poll, three point 5 million people said yes, he should sell stock. pay his taxes. the u.n. wants 6 billion as well. are we going to see an altar is

to excite of elon musk? >> i left the door open for that. elon musk had 170 million tesla shares. this is less than one million shares. the twitter poll said he would sell 10% of his stake. if this is what he is doing and he is following through with that promise based on 58% of three point 5 million people voting in favor of that proposal, then he still has quite a lot of stock. 16 million shares or so, by my back of the napkin math. what is interesting is the positive market reaction. shares rising after that filing dropped. even though often when the supply of shares into the market -- the opposite of -- is true. shares through -- so, we don't know. but, there is a timeline here. there is a chronology to what happened. all we can reinforce so the audiences that the filing said

he sold those shares of common stock to meet tax obligations. paul: west coast reporter ed ludlow. thanks for that update. rivian automotive has raised nearly $12 billion after investors piled in. ceo spoke to bloomberg earlier. >> we have to electrify that entire fleet. we have to replace in excess of a billion vehicles. the scale of this is unimaginably large. it is going to require multiple companies to be building multiple products. portfolios, products that capture markets in different segments. for us, we are focused on that. what we are looking at today is our launch products but making sure we have the capital to continue scaling the business and building capacity for future products.

continue with the developing future products along with the technologies is key. we are striving to help drive and lead this massive transition. paul: > >> with the city of fort worth. you're looking at potential sites for a plant in europe, what is the update? >> we haven't made any announcements around second facilities, second or third facilities. there are certainly lots of speculation, but these are important decisions. for us, it comes down to looking at the ability to recruit an outstanding team to come and help drive and operate these facilities. looking at the pool of talent that exists in these potential locations as well as access to the supply chain. where suppliers are, and what logistics look like to bring components in. >> on supply chain, you delayed production more than once.

you talked about a shortage of semiconductors. where are the pressure points? is it in semiconductors? rising costs? labor? >> i would say the biggest challenge we have, and broadly across many industries, is really the health of the supply chain. if you think about building a vehicle like this, there is around 2000 parts that come in from suppliers. this is one of those situations where a 99.5% is not good enough. if 99.5% of the supply chain is ramping the same rate at our production, but 0.5% is not, that creates a throttle for how fast we can ramp the facility. that is the world we are living and with many others. managing what is actually a small number of suppliers, but working close with them and partnering with them to make sure they can keep up with our ramp.

that is a major focus of our team. we're fortunate to have great folks on the ground working with suppliers. making sure we get ready to shery: shery: ramp. coming up, the latest australian jobs numbers. jobs numbers. and there you have it. woah. wireless on the most reliable network nationwide. wow. big deal. we get unlimited for just 30 bucks. sweet. but mine has 5g included. relaaax people. my wireless is crushing it! that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one-upping itself. switch to xfinity mobile and get $200 back when you bring your own phone. or get a samsung galaxy a42 on us. call, click or visit a store today.

paul: just waiting on the australian jobs numbers for october. they're not out yet, but the aussie dollar has reacted, dropping down. we are anticipating a slight uptick in the employment rate to 4.8%. the creation of 50,000 extra jobs. the participation rate is the number we are keeping an eye on. that has been falling as well, 64 .8% in the month of september.

that, to some degree has been masking what we have been seeing going on in the jobs market. a big increase in the unemployment rate. 5.2 percent. that is up from 4.6% we saw in march. still waiting on other numbers to arrive, but the aussie dollar seems to be stabilizing, 73.15. as we wait for those numbers to come outcome i want to bring in our economy managing editor malcolm scott. a lot of what we have been seeing in the jobs market here has been masked by a variety of factors. participation rate, various states opening and closing borders during these few months. participation rate out, that has increased slightly. what is your read of what has been going on in the jobs market? >> big picture here, the jobs numbers have been better than

policymakers feared. throughout the pandemic period. last year, this year, the government's program to keep employees connected to employers has worked for the most part. the labor market was -- to deteriorate with on employment expected to be around 10% worst-case scenario from the treasury and reserve bank. we never got close. we got about seven point 5% last year. we are back above 5%, but still less than half what was feared at the time. the big picture is these numbers have been pretty good. today's numbers took a little bit of a drop. shery: we are getting a few more details on those numbers. the employment picture, contraction of 46,300 jobs in october. the estimate was for a gain of 50,000. full-time employment falling in

october. part-time employment also falling 5900 in october. are the implications here for rba? >> rba has been saying all along that employment is key for their policy picture. last week, they ditched their yield curve control program after market bets they had it wrong on inflation and inflation is going to accelerate. even if they dropped their program, the governor was clear to remind markets that he does not plan to increase interest rates currently until 2024. that is because he does not see the wage pressure needed to get inflation sustainably into the 2%-3% target. he does not think that is going to happen. until that time, wages running half of what the rba thinks they need to at 1.7% in the recent quarter. the governor of the reserve banks -- bank thinks that needs

to be 3.5 percent. he needs lower unemployment for that to happen. paul: australia passed another milestone in the battle against covid. 90% first dose across the entire country. here in new south wales, we are 90% double dose. as states begin to reopen and things get back to normal, what is the look out for the employment picture? >> we can base our estimates on one happened last year. -- what happened last year. there was a snapback once they started to get back to normal. the same is happening at the moment. in october, it was a bit of a stop start process. new south wales started to reopen, schools went back and victoria was still largely in lockdown. from november to december, we should have more of the big east coast centers back to normal. we are already seeing the cbd in sydney coming back to normal.

we expect unemployment numbers to snapback towards the end of the year. that is certainly what the central bank governors anticipating as well. all along he has been saying we should see a quick rebound once things get back to usual. shery: malcolm scott in sydney. with his insights into these drops numbers coming from australia. as we get those numbers, we actually saw the aussie dollar erasing gains after the jobless rate rose. we saw that australian three year yield pairing that advance. it is now back under 1% after those jobs numbers. the australian employment picture of course a contraction of 46,300 despite the fact it is a volatile set of numbers. asx 200 paring back some earlier declines. down 3/10 of 1%. energy and tech leading the index lower. we are talking about because be under pressure. .4%.

its worst day in a week. this as we got the export numbers looking pretty strong for the first 10 days of the month. rising almost 30%. the nikkei at the moment is up .3%. despite the fact that we still continue to see a very strong japanese yen at around a one month high against the u.s. dollar. kiwi stocks rebounding from losses in the previous session. the san francisco fed president mary daly says u.s. inflation is eye popping, but too soon to judge if faster hikes are needed. she spoke exclusively with michael mckee. >> we have a challenge. inflation is high. it catches people's attention and hurts their pocketbooks. the issue is that we still have covid. covid is still an issue globally and that is affecting supply chains, the ability to go out

and buy services, to meet in person. this is my first in person meeting. that matters for inflation and for drops. this is a transitory period we believe. that is what i think when i look at the data. it is directly related to covid. the quicker we get through covid the better off we will be. >> with real yields at -.6%, you are stimulating the economy. as restrictions get looser all the time, does this change your calculation? >> right now would be -- right now it would be premature. really, we are still focused on covid. the higher inflation reading certainly have my attention. i am watching inflation expectations as well. the other side of this is the number of missing jobs. the number of women home taking care of children has my attention. the number of people who were displaced and have not come back of my attention. have a full employment mandate

and we are trying to balance those things and make sure we have an economy that is self-sustaining once we get through covid and really has the legs under it to deliver to americans what they want, price stability, full employment and the ability to participate. >> you say now is not the time to talk raising rates, but policy works with a lag. there are people who think you are behind the curve if you wait until the end of tapering to consider it. how do you balance those risks? >> the first thing is that we are always considering. it is not that we are not thinking about them and we simply put off thinking until that period. the issue is that if we do it now, that could actually be premature. as inflation comes down, as we expect it to and we still have 4 million people sidelined, we organize lead the economy short of what it could be. short of price stability, short of full employment. that would be missed.

there is a lot of uncertainty before us. anyone who tells you they know what it is going to be, the modal outlook i have, or none of that and inflation will persist, either view, you should have confidence that you have a modal outlook, but not so much confidence you want to move policy. uncertainty requires us to wait. >> one of the great uncertainties for wall street as you have a policy in place but the policy was put in place by leadership that may no longer be in place. right now, the choice seems to be for president biden between reappointing jay powell or appointing lael brainard. you worked with both. would it change policy depending on which one were share? >> here is something listeners might not know. one of the -- i have worked for four chairs in my tenure. what i see each and every time is that being the chair does not

change policy. we are always all committed, each member of fomc is committed to the same thing. achieving the goals congress gave us a price stability, full employment, then thinking on how to do that. each of the people you named are amazing. there's lots of wonderful people who could lead our organization. most important, that we are deliberating together on the same goal. the continuity is of the conversation we have, not on who is sharon who is not. paul: san francisco fed president mary daly speaking with michael mckee. up next, a deep dive into the world's biggest shopping event. citigroup's alicia yap joins us to talk alibaba's singles' day.

vonnie: xi jinping is set to deliver the first resolution in communist party history and 40 years, giving him the mandate to rule for life. the landmark document is expected to be announced thursday asked a party wraps up a four day meeting. only mao zedong and don dropping have done so.

most used -- evergrange looks to avert another default in its biggest debt hedge since the crisis began. customers have received overdue interest on three dollar bonds. two investors that hold two of the bonds confirmed they received the funds. evergrange needed to make a hundred 40 million dollars in coupon payments by wednesday before the end of a 30 day grace period. elon musk has sold stock in the company shortly after his twitter vote. regulatory filing shows musk exercised 2 million options at two dollars -- he subsequently sold 934,000 shares to collect about $1.1 billion. the filings say the shares were sold solely to fulfill tax obligations. johnson & johnson will have its

baby powder bankruptcy moved to new jersey. the transfer will test a plan known as texas two-step. j&j created a unit in texas to hold all of the lawsuits claiming its products cause cancer. it moved the unit to north carolina and placed it in insolvency. the strategy has not yet been tried in new jersey's federal bankruptcy court. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. paul: tencent third quarter revenue missed estimates with growth slowing for a six straight quarter. the chinese tech giant says it is embracing the new rayleigh tory environment. for more, let's bring in alicia yap, head of pan asia internet research at citigroup. i want to start by bringing up this chart. it is a look at tencent positive revenue -- tencent third quarter revenue. you can see the lines grinding

downwards. a picture may not be worth a thousand words in this case. three ought to do, revenue is falling. alicia: i guess this is actually as what we expected. even though they missed the estimate by 2%, they actually beat our estimate by 3.6% on the top line. the profit actually came in relatively in line with our estimate. i think, as what we preview before, the online advertising actually facing the macro headwinds as well as regulatory headwinds. that is actually a factor of certain industry vertical actually phasing this declining trend for budget cutbacks. that is what we actually foresee already. i guess the overall revenue slowdown you could also attribute to the last few years. there was pretty good growth from the gaming industry as well

as the cloud industry and the fintech and obviously -- no coming down to normalized growth especially with disruption last year from covid. paul: as the committee adjusts to the new rigell tory environment, it does have a healthy balance sheet. in the long term, how does tencent look to you? alicia: we are positive on the long-term. if you thick about what they have laid out in the strategic area in the csi research, cloud and business resource and the games studio, especially for sending more into international gaming ip, and then the content which is the video content. all of these is actually going to bring them pretty sustainable growth going forward. the headwinds from the advertising will be more short-term. as you mentioned, -- base will

reset and we should be getting the growth from the secular structure benefiting and advertising should recover. shery: given as regulatory concerns in china, how do you expect singles' day to look this year? alicia: i guess for singles' day, what we preview, we do more or less -- expectations from across investment communities, southside or the industry experts. we forecast alibaba to only grow 10% to 15%. versus last year they grew about 26%. again, this is 11 days of accumulation. this is a pretty big slowdown from last year. part of it is the base is larger and part of it is also the macro really slow down. the consumption is really

weakened. shery: what about other companies, alibaba's peers? alicia: we also have a forecast for jd. jd gmd 11 day accumulated expectation we have is to grow 22 to 20 -- 22% to 26%. part of that is because judging from the june 18 sales at also the first half sales and our expectation for the second half for jd to remain pretty solid at 22% to 23%. i think judging from that, they have also been gaining market share from their peers and on the strategy of working pretty well. we do think this should probably could sustain a pretty solid growth for single -- shery: great having you with us. head of penn nation internet research at citigroup.

let's stay with alibaba, singles' day. some have built massive followings and can move billions of dollars worth of goods in a single broadcast. here is a look at the growth and future of e-commerce live streams. from me china's most popular retail influencers. these two have such big followings, he wants sold 15,000 units of lipstick in five minutes. together, they racked up sales last year of $8.2 billion. that has made him a multimillionaire at age 36, with one of her broadcasts pulling a record high audience of 37 million people. that is more than the game of thrones finale or the oscars. across mainland china, online streams rake in revenue over hundred 49 billion last year. that is just under one trillion

yuan. that represented about 10% of china's annual entente -- annual online retail sales in 2020. astronomical growth for an industry that alibaba pioneered as a marketing tool just five years ago. a survey last year found that almost 40% of all chinese internet users had watched e-commerce live streams. 28,000 companies now operate as livestreaming agencies, growing so successful in some cases that several are set to be considering going public. but all of this capital flowing into these influencer incubators has drawn increased scrutiny from beijing. regulators said rules as to how they are marketed. they've cracked down on fraud, with several influencers accused of selling fake products and inflating sales figures, earning them fines and bands.

but, the biggest impact could come from regulations linked to beijing's, and prosperity drive. as part of the initiative to reshape chinese society, authorities have cracked down on the culture of celebrity. putting at risk one of the key pillars of the industry's success. for now, business as usual. bloomberg intelligence says any potential fallout can't be quantified until regulations are -- shery: paul, it is a big deal when a single day in asia. in the u.s., i am already looking forward to black friday deals. they come up after thanksgiving. unfortunately, i am not sure if i will be lucky enough to get really good discounts given that there is really tight inventory with supply chain disruptions looming. all of those holiday perks and discounts we are expecting usually in more normal times.

paul: that is right. prices might start to look a little more like what you get outside of a black friday promotion. those discounts are not expected to be particularly heavy this time. some analysts say sales might happen, but the window for those sales is going to be a much shorter period of time. those tight inventories, not enough around for retailers to be discounting at the moment. there is plenty more to come here on daybreak asia. stay with us. this is bloomberg. oomberg.

paul: bloomberg has been told that sony has reduced its playstation 5 production outlook due to components and logistics constraints. joining us for details is bloomberg asia tech editor vlad. this suggests supply chain crunches are not easing up as might have been hoped. is sony going to be able to achieve its ps5 sales targets? >> interesting question. production previously had been 16,000 units for the fiscal year. it is now down to around 15 million. sony's goal is 14.8 million or above. there is little margin for error.

sony, if it could produce more, would have done millions more units because the console has been constant. it has been sold out globally since its launch a year ago. same with microsoft's xbox. part of the issue is that sony is not able to capitalize on the fact that this is a new generation device that there is really strong demand for and you can't put machines in people's hands. the other thing, next year, 22.6 million sales. it needed to produce some devices this year in order to get a head start on that. the real threat might be the next fiscal year. shery: how are companies like nintendo faring? >> nintendo just disclosed earnings recently. it cut its own sales forecast for the year by a substantial amount. 1.5 million units.

the valve, which has its pc service, its own portable game device, it said it would launch in december and has now pushed back to february citing supply chain issues. paul: what is a realistic timeline for when we can expect supply of consoles and other electronics to catch up with demand? >> it is shaping up like 2022 is going to be a repeat of 2021. do not expect anything all the way through next year and probably then we can look at things normalizing in 2023. microsoft, the other big company on the console front, it's xbox -- the company is working hard to make sure it does not get pinched by the supply chain the way it has over the past 18 months. they're going to invest in building capacity for production in other geographies. shery: vlad selloff.

-- more on the outlook from chinese corporate's. managing director philip gould and sarah salt chairman. bloomberg markets trying other openness next.

♪ >> 9:00 in beijing and shanghai. i'm yvonne man. >> the open of trade. let's get to your top story. yvonne: a weight risk appetite. fed hike pressure grows. ever grand looks set to reverse defaults again.