>> good morning and welcome to "bloomberg daybreak: autralia." we are counting down to asia's major market opens. shery: good evening. the top stories. u.s. stocks and bonds retreat as

investors focus on fed tightening and inflation. oil sinks. >> the u.s. calls on all nations to condemn russia's invasion of ukraine after president biden discusses the war with prime minister modi. shery: tencent and -- are absent from a list of new titles. take a look at this. after the s&p 500 lost ground, every sector declining. we had long-standing bull market -- we had a long-standing bowl say perhaps it is time to take profits from stocks. and another said the s&p 500 may be too sanguine about the economic outlook. we are fearing -- we are feeling the fears across markets.

the dollar index, higher for an eighth consecutive session. wti in the asian session rebounding after touching a six week low. demand fears with china's covid outbreak factoring in. and $92.10 -- we are getting close to the rally we saw after russia's invasion of ukraine. that rally is about to evaporate. we were watching china avr's as well. the gaming companies rally based on china's approval of --. we heard charlie monger -- we were talking about daily journal and they cut their position on alibaba by roughly half according to regulatory findings. we have been watching that stock

lose ground. paul: a rough day on u.s. markets and it is shaping up to see a bit of selling here in asia as well. in new zealand, the index off by about a fifth of 1%. in australia, futures off i a little more than a quarter of one percent. nikkei futures flat at the moment but we are seeing dollar strength and yen weakness continue to be a theme. the aussie 10-year, it topped 3% for the first time in almost seven years. we are keeping an eye on bonds as the day unfolds. shery: let's talk about that. we saw the worst treasury selloff in 22 years as markets are used for the latest inflation reading from the u.s. let's bring in mark cranfield on the phone and kathleen hays in new york. mark, let me start with you

because we are following the yields and long-term debt weighed by the auction of the tenure and 30 year that we are expecting to see. this has been a long trench. what are the implications for the equity space? the bond traders seem to be goading the fed to doing a 50 basis point hike. it is as if they are saying, we do not believe the fed is committed to this. we are going to see a print this week in the united states which could put cpi above 8%. everything is geared towards a bearish situation for bonds and it might mean the fed needs to bring a big hike to bring a circuit breaker mentality. we are probably going to see this unpleasant situation where it feeds on itself people --

where people see the curve will swing around. there is also a huge -- there was a huge amazon bond yield yesterday -- deal yesterday. the fed could bring it to a halt in may. if they sound aggressive, it might be a relief to the market. paul: let's get more on that with kathleen hays. more fed officials seem to have an appetite to hike rates, even some of the more dovish members. >> we are hearing they are ready to move aggressively and i do not think that the fed needs goading from the bond market. more speakers saying we are open to a 50 paces point rate hike including chris waller. he said the board of governors is talking about the fed funds rate and the move is brute force

and there may be collateral damage. he is ready to go. when you talk about the risk of recession, it sounds like a bear but that won't stop him. >> we do not have a policy rule for every segment of the population or industry. we have one and it is called the interest rate. that is really it. it is a brute force hammer that we use on the economy and when you have to use a root force tool, sometimes there is collateral damage that happens but we are trying to do this where there is not much of it that we cannot tailor policy. >> let's put charlie evans in the dovish camp which is in the 50 basis point rate hike camp. when you look at what the market is expecting for rate on this bloomberg chart, charlie evans says he thinks the fed should be

reaching neutral rate in march. the only way to do that is if you have a 50 basis point rate hike here and there. it is worthy of consideration and even likely. he is of a recession risk. markets expecting to 25 this year and age of dust said they could be 2.4 or two point five by december. the march cpi is seeing a .4% up from a percent, that will be the fastest highest rate since early 1982 and it may be a peak. energy prices helped push it up. services, rents prices keeping rates higher. the cpi is expected to start falling back may be down to 5.7% from our bloomberg survey. remember, that is still about three times the fed's 2% target.

an inflation rate that high means the fed will continue to raise -- continue to hike rates. shery: we are looking forward to those inflation numbers. kathleen hays and mark cranfield training us. austria's chancellor is a first european leader to meet vladimir putin in person on the war in ukraine and he came away pessimistic on hopes for peace. >> i have no optimistic impression that i can bring you from this conversation with president vladimir putin. the offense of his being massively prepared and the clear commitment that a stable access of the international red cross is needed. shery: for more, let's bring in jodi schneider. how are president biden and other leaders responding to the latest developments? >> as we heard from the austrian

chancellor, there is not a lot of optimism that things will get better anytime soon. we heard from the mayor of mariupol that he thinks as many as 10,000 civilians have been killed there since the start of the invasion. on the world stage, we have eu leaders urgently pleading for more weapons to be sent to ukraine saying they will be able to overtake the advances of the russian troops. they need the weapons as soon as possible. we also heard from the leader of poland that they could have the biggest tank battle since world war ii. not a lot of optimism there but a lot of pleas for more help for the ukrainians. and president biden had a phone conversation, a virtual meeting today with the prime minister of india trying to mend fences since that relationship has gotten much more complicated

because india has been reluctant to criticize that invasion of ukraine basically because they are so energy dependent on russia. president biden was said to have told modi that the u.s. would be willing to help them in terms of energy to really diversify their energy resource so they were not as dependent on russia. they said the talk went well but it is a complicated relationship right now. paul: bloomberg's political news director jodi schneider. let's get over to vonnie quinn. >> good morning. pakistan's new prime minister has laid out his vision and his first speech. he says he wants to turn the country into a paradise for investments to shore up the economy but he also unveiled a range of populist measures including a raise to the minimum wage. he was elected prime minister by

just over half of the lawmakers. shanghai is said to maintain its strict covid lockdown with daily cases rising to records. shanghai's communist party chief pledged to keep harsh restrictions and place to cut off any community transmission. parts of the city have been locked down for weeks as frustration among residents has been building. shanghai has reported more than 26,000 cases on sunday. thousands of students join protests across indonesia over rumors about the delay of the presidential election. the president denies his administration is trying to push back the vote to allow him to keep -- to stay in office. indonesian please dispersed the protesters. china is ending its videogame freeze. regulators approved the first batch of licenses to end the

hiatus putting the biggest mobile arena on edge. by doing -- baidu and others were among those licenses approved. tencent was notably absent. 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 as bloomberg. shery: still ahead, we discussed the bear market for bonds as a repricing of expectations creates the worst treasury selloff in more than two decades. up next, alphasimplex says equity markets are in limbo giving mixed signals about where they are headed. we discuss how to navigate that ahead. this is bloomberg. ♪this is bloomberg. ♪

>> it husband -- yields have climbed so quickly. demand for bonds is evaporating quickly. >> a huge selloff in the bond market. >> speed is a problem for equities. >> the job of orchestrating a

soft landing. >> it is going to require some fancy footwork from the fed. >> growth is slowing. >> equities and fixed income are struggling. >> the fed's path to the soft landing has narrowed. >> it is unlikely we can avoid a harder landing. shery: some of our guests from bloomberg television. our next guest says equity market is in limbo and there are mixed signals about where they are heading. with us now is katy kaminski. a portfolio manager at alphasimplex group. we have seen defense subsectors really outperform. how do you position? dr. kaminski: it is a very interesting period in history right now where we are seeing such strong short signals in the fixed income sector.

that is an indication that you have to think about duration exposure and what things are going to be better positioned for this rising rate environment. i think the challenge we have is that we have not seen an environment like this for such a long time that correlations and different asset returns are behaving very differently. today, markets have been way down and yields were up anyway. that is a different correlation pattern then what we are used to for the last few years. shery: with inflation of the fastest in 40 years and perhaps faster when we get the headline numbers tomorrow. how do you hedge for rising prices as well? dr. kaminski: i think right now some of the best signals we have seen has been to be short fixed income which is something people have been hesitant to do for the last 20 years. there are times in history where that is a good position to take. there is also commodity exposure which although it has given back

a little recently, we are still somewhat bullish on commodities that these conflicts and issues we have in terms of geopolitical risks coupling that with supply chain issues that are going to take time to resolve suggests you should think about inflation as a key driver. anything that might benefit for a -- from a rising rate and inflation environment is something that would help any investor whether this particular storm a little better. paul: we will get some inflation data this week. u.s. cpi expected to hit a .4%. do you think that will be the peak? dr. kaminski: i actually am a little more worried it might continue. i guess because i am a trend follower. we tend to think that people tend to be complacent. they think things will get better before they don't. they also tend to underestimate

the power and pervasiveness of inflation. and so, i think for us this narrative that has been going for two years already almost is something that will take time to resolve and it is the first thing that has caused central bankers to move in a long time in terms of rising rates or raising rates or rate hikes and that is why i would have to say that we think it can continue until we start to see evidence. so far, i tend to think that things continue longer than we would like them to. paul: we have a lot of discussion in this environment about the risk of recession. where is that risk in your opinion? dr. kaminski: from our perspective, there is definitely a serious risk out there. i think there are two core paths. one is that equity markets are able to waiver some of these moves and the rising rates which can put pressure on growth. but if they do it steadily

enough and we can get through this period without any major disruption, i think it might be the case where we see a resume to growth in the future. more dangerous scenario is that we have to raise rates at such a pace it clamps down on growth and causes difficulty in terms of the fact that we start talking about stagflation. that is the scenario i was talking about where inflation continues to move and raising rates is not fast enough to catch up with it to such a point that it pushes us to a point where growth instruction is an issue and that is the scenario that most people are worried about at this point. shery: the expectation by traders is that we will see the fed hiking rates by war than 200 basis points this year alone and we have not seen that sort of tightening and that pace since the early 1990's. we saw how brutal it was. where do you stand when it comes to the bond space given what we

are seeing in terms of signals coming from the fed? dr. kaminski: from our side, we look a lot at price movement and momentum. there is incredible strength in the bond move. what it looks like right now is that people have been positioning based on expectations of extremely aggressive hikes. what that suggests is that there is definitely more room to move in that trend and i think the real matter comes down to the fact that inflation at a .4% versus the 10-year gilts of 2.75, they are still really far apart which means you really have to think about this being a lot more real than any of us have ever experienced for a long time. paul: all right, katy kaminski, alphasimplex group chief, research strategist and portfolio manager, thank you. you can get a roundup of the stories you need to know to get

your day going. terminal subscribers can go to dayb . this is bloomberg. ♪

shery: hear is a quick check of the latest headlines. amazon is selling almost $13 billion of bonds. the retail giant plans to use proceeds from the deal for general corporate purposes that may include repaying debt, funding acquisitions and share buybacks. sources say the yields over treasuries. elon musk has rejected twitter's to join its board. the surprise reversal has set

off speculation about his intentions for taking a 9% stake in the country. he is no longer subject to an agreement to keep his share low 14.9 percent. analysts say ed also opens the door for him to priced twitter for a deal or take a more hostile stance against the company. canada's shopify has become the latest giant to announced plans to split its stock to bring in more retail investors. the proposal to implement a 10 for one stock split is now awaiting approval. in june, shopify will also offer the ceo a special founding share that will preserve his voting power during his tenure. paul: take a look at the day ahead. new zealand's central bank set to raise interest rates for the fourth straight meeting on wednesday as it seeks to rein in the fastest inflation and more than 30 years. in the media space, the

commission has provisionally authorized news outlets to collectively negotiate on display and content on facebook and google. the australian prime minister morrison promising to create 1.3 million jobs in the next five years as he pushes for reelection. there were -- the election date is may 21. and the deputy premier of australia will discuss the effect of the pandemic on the economy of the state. shery: we have seen an incredible strength for the dollar index. the highest level since july 2020 as the yield curve steepen's. and we have u.s. inflation data tomorrow. we are expecting a fresh four decade high. that is being felt across currency space as well. take a look at the aussie which is holding steady at 74 u.s. cents level. we areond

yields after the 10 year topped 3% for the first time since 2015. we see the treasury yields rallying sending global bond yields higher as well. same thing for japan. we will be watching the jb j 10 year yield. that eased that but we will be watching for perhaps more boj operations if they again test the upper limit while the japanese yen is now at the 125 level against the u.s. dollar. this is around the 2015 low versus the u.s. dollar given the rate differentials are being felt in the currency space. the kiwi holding. we saw it fall last week. take a look at u.s. futures. muted at the moment after stocks fell in the new york session. every sector on the s&p 500 in the red. the nasdaq losing more than 2%. more analysts are turning a

little more cautious about u.s. equities. bolo -- a bull market dialing back is optimism saying it is perhaps time to take profits on stocks. at xfinity, we live and work in the same neighborhood as you. we're always working to keep you connected to what you love. and now, we're working to bring you the next generation of wifi. it's ultra-fast. faster than a gig. supersonic wifi. only from xfinity. it can power hundreds of devices with three times the bandwidth. so your growing wifi needs will be met. supersonic wifi only from us... xfinity.

>> you are watching "daybreak australia." ukrainian president vladimir luz densely -- volodymyr zelenskyy has urged countries to provide weapons. he cited the korean war as he called on lawmakers to approve the sale of military hardware. earlier, he rejected the request because of its principled stance on not providing lethal hardware. karl nehammer says he is pessimistic about the prospects

for peace in ukraine. he e.u. spoke after becoming the e.u. first -- he spoke after becoming the first e.u. to visit vladimir putin. he confronted the russian leader on war crimes and said sanctions will remain in place as long as people are dying in ukraine. the u.s. has called on all nations to condemn russia's war in ukraine after talks between president biden and narendra modi. according to the white house, biden says the white house stands ready to diversify energy imports to make it less reliant on russia. modi has declined to impose any sanctions on moscow while continuing to import cheap russian oil. new zealand central bank looks set to raise interest rates for a fourth straight meeting. the fastest inflation in more than 30 years even as risks amount of an economic downturn. 15 of 20 economists surveyed by bloomberg see the rbnz lifting the cash rate to 1.25%.

that is a 5.5 point increase. 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: take a look at chinese adrs. we have them broadly falling today for a fifth consecutive session but with alibaba leading those declines, we had seen the daily journal that counts charlie as -- cutting its stake in alibaba by roughly half. we have a stock falling almost 2% there. another factor that plays into that was the fact that alibaba did not make any of those gains that were approved by china and you are seeing those chinese videogame makers rallying on the latest call when it comes to china, proving the new gaming licenses.

paul: chinese videogame stocks surged as china ended the 10 month freeze on new game approvals. let's get to stephen engle. obviously, this was welcome news for investors in the chinese game space but will some headwinds, right? stephen: that's right. these gaming companies are not out of the woods because there is still pressure on livestreaming. tencent pulled the plug on its penguin e-sports venture that was going to create a twitch like service in china, but they pulled the plug on that, pulling the plug by doing so there's pressure on elements of the gaming sector which of course over the last 10 months has been under pressure as government regulators really cracked down on the negative influencing aspects of games. one state media called it spiritual opium before that was kind of a scrub from the internet. it gave an indication of the

government's view of gaming and the generation of gamers and undesirable behavior that the government sees gaming creating. this is welcome news because it is the first time since last july that we had a batch of new titles approved. it was a long hiatus but there was a list of 45 games that were published by the national press and publication administration of china late on monday but interestingly, they did not include titles from the two big industry juggernauts, those being tencent and -- there adrs did rise at the beginning of the session but then fell back as they found that those games were not necessarily on the list. we did get games from baidu, and others. it relieved some pressure on the industry right now. there was a rally in stocks like bilibili. we will have to see how it goes forward, especially with the

crackdown on algorithms in the industry as well as livestreaming. shery: seeing the angle -- stephen engle there. no wonder the optimism is being tempered by china's largest covid-19 outbreak in two years. earlier, joseph sharfstein discussed challenges beijing faces in tamping down the pandemic. joseph: for all intents and purposes, it is actually transmissible and for people who are unvaccinated or perhaps the vaccine lost its effectiveness, it could be quite deadly, so it's a very serious situation in china right now. >> we got over it quickly here, i would suggest as an amateur. do you have the same optimism that question -- optimism there? joseph: they are taking such measures to tamp it down that they really are not in a position to get over it quite quickly unless they can manage

to eliminate it entirely which is going to be quite difficult. in our country, it went through so quickly because it just burned through the population very fast and we suffered from that. we had the highest hospitalizations that we have had through the whole pandemic and quite a large number of deaths. but on the other cited that, we have a lot of immunity right now and that is probably helping us with the ba.2 variant. >> has threatening does that mean that future variants that potentially could emerge out of outbreaks like that seen in china, how great a threat is that to the u.s. or other countries that have a high level of either immunization or naturalized immunity? joseph: it depends on the nature of the variant. we are all worried about a variant that could escape our immune system's response or partially escape and it depends on the biology of the variant. you know, the thing that drives variant production is the number of infections. there are not that many infections right now in china. chinese challenge is they have

to figure out how to best protect their population in the way that they find acceptable i guess. they are doing things that we would not find acceptable. but for us, we are really focused on reducing the enormous number of infections that could still be happening in parts of the world, really hoping to get vaccination out to the countries that don't really have any. >> as ther are highe infection rates, one can it move into the endemic phase -- when can it move into the endemic phase? that still feels pandemic-esque to me. joseph: i don't think we are in a much better place in the world until we have seen high vaccination rates in as many countries as we possibly can get to an right now, it looks like the vaccine supply is not as much of the limiting factor as the infrastructure for vaccination as well as some fundamental issues of

acceptance. you have to invest money in the -- money to explain the value of vaccine and to be able to get it to their local jurisdiction and all of that is extremely important. i hope that congress recognizes that and adds some money back into the discussion of any pandemic funding bill. paul: joshua sharfstein, johns hopkins bloomberg school of public health by dean speaking with bloomberg earlier. the johns hopkins bloomberg school of public health is supported by michael r. bloomberg, founder of bloomberg lp and bloomberg philanthropies. coming up, treasuries in their worst selloff in more than two decades. we look at the outlook, next. this is bloomberg. ♪

shery: it is time for morning cause ahead of the issue trading day. u.s. bonds and stocks are too sanguine on the economy according to morgan stanley's strategist p he says the stock market -- strategist. he says the stock market could have a slowdown.

it suggests growth is not only fine but likely to remain robust. he says cyclical stocks will be most at risk in a reversal. chinese stocks, investors are looking past the current covid lockdowns according to goldman sachs. the markets are instead focusing on hopes of more aggressive and decisive policy easing and this of course on the areas where this might be the most noticeable including property developers and some infrastructure related names, paul. paul: thanks. we are getting a little bit of breaking news on the bloomberg terminal the moment from handel group, rejecting perpetual's indicative take over proposal. they had to offer a $1.8 billion proposal to the group and valued them at -- per share. they are saying this offer is

not in the best interest of its holders and are rejecting the indicative take of a proposal from the petrol group. let's take a look at bonds as well. australian bronze have just started trading and they are moving higher. yields are, anyway. we are seeing the aussie tenure at levels we have -- 10 year at levels we have not seen since 2015. we have the aussie three year for you -- i don't have that for you at the moment. let's take a look at how we are trading in new zealand. the ndx flat at the moment. we did see some heavy selling in the u.s. and not really translating into losses in new zealand at the moment. the market kind of flat here. futures in this part of the world pointing to a modestly lower open but not terribly so. there are bond yields i mentioned earlier. you see the 10 year continuing to creep up in australia. new zealand bond yields rising as well ahead of a cash rate

decision from the rbnz. this week, we are expecting to see the rate raise to 1.2 5% from 1%. we have plenty more to come on daybreak. stay with us. this is bloomberg. ♪

shery: here is a quick check of the latest business flash

headlines. india's company has received environmental clearance for an $8.6 billion plan -- facing protests. activists are citing concerns over pollution and the diversion of land away from agriculture. gsw -- jsw says it set aside funds for environmental protection. a coffee company completed the restructuring of its financial debt, emerging from chapter 15 bankruptcy proceedings. that means it is no longer subject to insolvency proceedings in any jurisdiction. the ceo says he is confident the luckin coffee will have growth. rising labor costs weighed on profits in the fourth quarter. net income rose 7.4% to 1.2 billion dollars, missing average analyst estimates. a talent crunch is making it

harder for i.t. companies like tcs to attract workers, increasing costs and weighing on margins. paul: cryptocurrencies are caught up in the latest market selloff. many of the popular alt coins leading the way lower. bitcoin fell close to 8%. ether, the second largest coin by market value, fell more than 9%. su keenan joins us now with more on this historically, bitcoin has outperformed. perhaps not this time. su: what we are seeing is bitcoin investors having much longer term conviction and that is why on the downside, the alt coins tend to overshoot. if you look at the drop in bitcoin just in the past week, it lost some 12%. it's also now below the 40,000 dollar mark for the first time since mid-march. it is a real question about

direction and range at this point but check out the alt coins in the same time period, the past seven days. for avalanche and another, two very popular coins, they are down 20%. there is a sea of red on all the other coins as well in terms of how they have performed in the past week. there is march synchronicity here since we saw bitcoin peek about $48,000 in late march. bitcoin and other tokens, as you can see, have been dragged to lower by concerns about the rate hike, tighter monetary policy, and even all the buzz that we got out of last week's it coin 2022 conference held in miami. what you are also seeing in this chart is your greater correlation between bitcoin and the nasdaq 100. in other words, when tech sells off, we are seeing bitcoin selloff and all the crypto's, and that is happening more and more. where does bitcoin go from here? a lot of analysts are saying we

have been stuck between a 35,000 range to $45,000 range for most of the year. it's a real question mark now whether we will continue to see a tight range or some impetus to move things higher. paul: bloomberg's su keenan there. let's bring in our guest who says the repricing of cash rate expectations has created one of the worst bear markets for global bond benchmarks in decades. joining us now is beverly morris, director of fixed income . beverly, i want to start close to home for you and i at the moment because we have just had trading a few minutes ago for australian bonds and we have the yield on the aussie tenure climbing again. 305.38. where do you see the selloff ending? >> that is the question everyone is asking at the moment for sure. what we really need to see

globally is a peak in inflation which we probably thought was going to be around about now. we had further impetus to inflation more recently with tensions in ukraine and that pushed that a little further. that is probably what investors will need to see before we call a pause. like you said, it has been one of the worst bear markets we have seen in global bar markets -- bond markets in decades. they do not last for long periods of time. whenever bond markets historically have suffered losses over a six-month period like we have seen, typically, -- the six months following that, we tend to see positive returns

from bond markets. right now, we are in the middle ofiopaul: beverly, we want to ta look at this chart if you want to see it. it does illustrate the worst bonds selloff that we have seen a 22 years and we have the curve close to inversion as well. is the bond market really forcing the fed and other central banks into accelerating their path of tightening? beverley: the bond market is forcing the fed. the fed is definitely communicating to markets very recently that it also believes a period of monetary policy is forthcoming. i'm probably well overdue. i think the fed was quite late to the party, you could say. right now, we think the fed is very much alone with markets.

shery: given the sharp moves we have seen in bond markets, can we finally find some value? beverley: notwithstanding the fact that we still are seeing a lot of volatility on a day-to-day basis and bond markets, we do believe that we are starting to be the long-term emerging values, particularly in bond markets. cash rate hikes, we believe, are even more than adequately priced so it speaks to what we think the rba will deliver. we have not seen that since 2014. what we want to highlight to investors is the bond landscape has changed markedly in just a few months. it has been so quick that people

have not realized how much things have changed here. it has been many years with cash rates at zero, bond yields very low and very unappealing levels that investors need to come back and look at the fixed income market because they really contesof shery: beverly morris, it was fairly good talking to you -- beverley morris, it was really good talking to you. all of those moves very evident across the bond space. we are seeing that bond rise continue globally and we are talking about the australian 10 year yield at the highest since 2015. we have seen it now, top 3% for the first time since july of 2015. and we continue to watch for more indications about the strength of the australian economy with the rba. turning a little bit more hawkish, dropping its patient

stance when it comes to the rate hikes. we have australia's labor market data coming up on thursday as well. we are watching kiwi yield as well as the tenure at the highest since 2016 as well. this as we continue to watch what is happening in the central-bank space to the rbnz, expected to raise rates by 25 basis points on wednesday. we have seen the central-bank raising rates since 2021 so we might see more tightening moves. same thing with korea where we are expecting the bok to move higher as well. this of course as we continue to watch the treasury space as well with the 10 year yield now surpassing that 2.7 five level. take a look at the currency space because with yields rising, the dollar has been really strong and we are talking about the highest levels in's july of 2020. matt has sent asian currencies -- that has sent asian

currencies weaker. we are talking about the japanese yen and the weakest levels since 2015 or so against the u.s. dollar. we will be watching the tenure jgb as well. -- 10 jgb as well. we might see those boj operations. shery: we did of course see a reasonable amount of selling for u.s. stocks in the monthly session. the dow off by more than 1%. the nasdaq off by 2.1%. futures indicate that perhaps a modest turnaround when trading resumes on tuesday. nasdaq futures pointing higher by .1% so a modest snapback perhaps in the offering after the heavy selling we saw today. in this part of the world, we had the one market trading at the moment. the nzx off by a fifth of 1%. also futures pointing to a

slightly weaker open when we get going about one hours time, off by .25% there. we will be keeping an eye on pandle when trading does begin in australia. we got some more news from the company, now going to offer a share buyback of 100 million australian dollars to be funded by cash reserves and financial assets. earlier, pandal said it would knock back and indicative takeover proposal from perpetual. perpetual valued pandal at six dollars 23 -- six dollars when a three cents australian. now on -- six dollars and $.23 in australian money. shery: the upcoming federal election and the impact of the pandemic on the state's economy

had we will get the market outlook from the ceo who says there is still a potential upside for u.s. stocks before the next bear market. we will discuss that just ahead. that is it for "daybreak australia." "daybreak asia" is next. this is bloomberg. ♪

shery: good morning. i am paul allen in sydney. we are counting down to asia's major market opens. shery: i am shery ahn in new york. welcome to "daybreak asia." a sliding -- tighter monetary policy and china's covid lockdowns ripple across markets. china approves its new videogame licenses since july and ten