>> good morning and welcome to daybreak australia i am paul allen in sydney with the major market open. shery: i am shery ahn, the top stories this hour, u.s. stocks droplet, bond yields a store and better economic data. the fed will stay hawkish. paul: saudi arabia cuts us -- oil prices to asia as covid restrictions to china and call energy demand. shery: we look ahead to the australia economic growth numbers with gdp expected to show robust expansion. u.s. futures lagging a bit of clear direction but we are seeing red on the board after the s&p 500 fell. it did stay above 3900. that is very important because it tells you where short-term direction could go. we are very close to that over sole territory in the 14 hour day, near the 30 day level for the s&p 500.

we have concerns of a more hawkish fed which is why treasury yields sort across the curve. we are talking about a 10 year yield at the 3.3% levels. somewhat yields at the highest levels we have not seen since when he 14. we had u.s. service members, showing expansion at the fastest pace in four months. you can imagine why investors were thinking maybe we will see a hawkish fed. we are not seeing much of a change when it comes to oil prices. we were under pressure in the new york session. we have those lockdowns across china, but also, that rally over the opec-plus meeting data. what we are watching, key rate decision coming from chile. take a look at the chart. the key rate has been raised to the 10.75%. this is much higher, bigger rate hike than analysts had been expecting. we were expecting to a high of 10.5%. this is the fourth time we have seen chile's central bank raise rates by points.

we're talking what the first point in two decades that it has raised above the 10% level. more than 900 basis point hikes since 2021. this has to do with prices. we are talking about the fastest acceleration in prices in chile in decades. this is a global phenomenon. paul: yes, it sure is. that is key, that is i watering. let's look at how the asia markets are shaping up. new zealand, not a whole lot of action to report, higher by a few points in the early going. here in australia, futures .2 a -- pointing to a risk off day. it was really on energy and information technology ending higher at the end of yesterday. the big macro hit was the reserve a banker, raising the cash rates by 50 basis points to 3.3 -- 2.3 .5%.

it didn't do a lot to the aussie dollar, a dramatic slide, weakening considerably against of the greenback, in terms of what weakening against the greenback, look no further than the yen. 142, 83 against the u.s. dollar. -- 142.83 against the u.s. dollar. equities are causing interest for retail investors. retail investors are piling for these markets at the moment. institutional investors are a lot more cautious, diversions and the views of these two groups is almost as wider than it was two years ago, wider than a decade. history shows and choo-choo asians like this -- situations like this, investors get excited. shery: you can take a look at it from both sides. if you are a bull, institutional investors have not jumped into the market so there is fuel for the market to continue come on the other side, they are concerned, perhaps -- but on the

other sidebar concerned. i am very happy to be back in the office. i went on a long holiday break. if you know anything about the u.s., after labor day it is back to work, back to school, we are pretty excited. this is also perhaps some of the sentiment we are feeling finally on the wall street banks. we are talking about goldman sachs, morgan stanley clearing the final hurdle within person work. we are talking about this happening after a few false starts. remember when we had the delta variant and people wanted to come back and could not? the office in new york is pretty crowded. it seems to me that we are finally back. shery: paul: -- things do have a sense of returning to normal, my gauge is about the sydney bridge behind me, there's plenty of traffic there. more on tonight's stories, let's get to garfield reynolds and su

keenan. i want to start with you, particularly with u.s. treasuries we are seeing some interesting news on london yields. garfield: this is heading distorted by a slow investment sales -- bond sales which goes to the trading of sales on the hedge, getting exposure. that's probably five basis points. that's the main area where companies are looking to add. companies are borrowing because they are very certain that the fed is going to hike rates by at least 50 basis points this time, probably 75 and keep making large rate hikes. so, summer is over it is time to get back to business on wall street.

the business we are getting back to is selling corporate bonds. that is having an impact on treasuries on top of all of the other issues, strong economic data, the situation in europe, with russia effectively halting gas supplies through the main pipeline, energy prices, and more concerned about what is going on with energy supplies and prices within the u.s. and globally. all of that means inflation is going to remain a sticky and even as the fed has acknowledged that some of what is driving inflation is about supply shocks, what it can do is impact demand, because it wants to keep inflation expectations anchored. all of this adds up to high yields, at least in the short term. shery: let's delve into the energy sector, we are seeing wti trading at the $87 a barrel level. what are the factors right now playing into the oil price

dynamic? su: we've got a bounce back, down significantly in new --york, brent crude at down up below 93 what we are seeing is a couple of factors. the fact that we have asian lockdowns once again, concern about lower demand of and opec-plus meeting earlier this week for the first time cutting out book -- output. can see will -- opec, have fallen of capacity, the extra cushion they have had it is now down near the 2019 average. it is not that they are unwilling to pump more, they are unable and they provided the first output cut, a modest cut, of what we have seen in several years. meanwhile, as the oil prices come down and opec has cut output, it is really putting the

focus on demand, rather than supply. that's a bit of a flip. traders are distrusting any rally at this point. we've got our own crisis butting in the u.s., we've got a california heatwave creating energy crisis. california residents at this hour are being warned to prepare for rolling blackouts, because they don't have enough electricity and energy there. paul: i want to talk about the energy problem. for the european union as well the number of governments their moving to ensure that the supply in prices are kept under control for households. what sort of impact is this having on traders? the line -- su: all of the different energy components whether it be gas, coal, electricity, have been surging dramatically. check out the blue line, that is german power. the european union racing to come up with ideas to keep the

energy crisis from turning into an economic down. you got energy ministers having emergency meetings on friday. germany wants power caps next week. poland is putting limits on all natural gas imports. spain is making sure utilities have financing. energy traders are facing large -- margin calls of up to $1.5 trillion, traders are struggling to meet these calls. governments are trying to provide liquidity's market. you have one traders, norway's saying the real focus to the problem is the derivatives market. there is a need to get money to these various firms to keep the trades going. lastly let's drop into bloomberg, garfield hasn't mentioned the northfield pipeline -- has mentioned the nordstrom pipeline, shutting that lie down for what they say

is maintenance, there was an extension of the neatness because of various problems. that creates panic that they will keep this gas, resulting in a total cut off of power. europe is under pressure to act yesterday. shery: are we setting up for the asian session then? garfield: put a great given all of that -- pretty great given all of that. overnight, there was the collapse in the yen. battle through 142, got close to 143 for the dollar, there's a lot of eyes on the level of 146 which should take us back past the 24 year low that we spoke earlier about in the week. that puts the japanese currency on its worst year ever.

it's going to be a major theme, intervention watch, in tokyo when it comes to the fx markets. there's also spillover from that and the other issues with china's economy to the yuan, which despite the pboc's efforts to control its sliding towards seven per dollar, a psychological barrier, which will add it to the concern about risk sentiment, add to the feeling that the fed is driving the world into a recession. shery: have been away for a week, 142,, the japanese yen, that's insanity. we will be watching. garfield reynolds and su keenan with our top stories today. you can follow more on the story and the days trading on our live .

. with more expert commentary to see what is affecting your investments now, you will not want to miss all of the market action. let's get over to vonnie quinn with the first word headlines. >> california's warning residents to prepare for rolling blackouts, issuing a level two emergency warning for the second day. demand is soaring with temperatures above a 40 degrees celsius, across the state, schools and businesses reopening after labor day. the emergency declaration allows officials to order some large power consumers to shut down. saudi arabia has cut will prices for asia and the u.s. as covid lockdowns and a sagging economy school energy demand. it lowered its key arab wave, to asian refiners by almost four dollars a barrel. in line with traders expectations to follow the 25% drop in late futures in the past few months. chinese president xi, is calling for stronger efforts for nationwide resources for

developing key technologies. he says the whole nation system would include the areas critical to the economic and national security. 's comments reported by state media, as competition with the u.s. rises in industries including semiconductors. there warning u.s. auto trans to be cautious about taking on, chinese who trade in new york. washington and beijing are in dispute over audits i could see 200 companies take off -- taken off the emergent stock exchange. china does not allow -- although u.s. wash -- watchdogs will travel to hong kong to begin some inspections. global news 24 hours a day on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries around the world. paul: bill to come, look into the currency markets with -- is still to come, look into the currency markets, driving ongoing dollar strength. we will be talking strategy with

shana orczyk sissel and why she sees, strong international numbers. this is bloomberg. ♪

shery: the direction when it comes to the future space, after the s&p 500 fell, finishing above the 39,000 dollar level, near oversold levels. it's important because it gives you a sense of short-term direction for the market at a time when we have seen u.s. stocks a racing half of that rally from their june lows. there is a lot of uncertainty in the markets, especially when we have a rate decisions, we're headed towards the ecb rates decision that puts all of this,

signing up for the blackout period, before the fed decides on more rate hikes recession is a high probability according to our next guest, despite the stronger economic data. shana orczyk sissel, banrion capital do. always good to see you -- ceo. always good to see you. the services number really accelerated at the fastest pace and several months which would be great news but this is where the conundrum lies. you have great data, then you could potential he have a more hawkish fed. you could potentially go into recession. >> exactly. we had a really good august jobs report last week where we saw the labor force participation jump significantly. we saw employment rates in the prime ages at or near pre-pandemic levels. this is good, you would think. however, what it does is further

embolden the federal reserve to continue this aggressive hawkish tightening. and i think it is a given at this point that they're going to raise 75 basis points at the next meeting. chairman powell specifically stated in comments that he expects their policy to cause pain. i don't think it is something we should overlook that he chose to include that language in his comments. i think he knows that they need to be very aggressive for a longer -- for longer than people think. they not only want to get inflation under control, they want to get it stable for a per -- consistent period of time. shery: you're going to get the pain but the fed will probably have to cut rates which is why the stock market is positioning for rate cuts later on. is there a way that you can position your portfolio in a way to hedge both scenarios where

you have recession or you have a soft landing? either way in a more defensive and cautious way? >> absolutely. if there is a soft landing it is more luck than skill. the fed is setting us up to have anything but a soft landing. it will really be global economic events that are out of their control that really pushes us to a soft landing not necessarily a threat policy. as far as positioning portfolios i am positioning defensively. i talk about this all the time, higher quality stocks, large caps, keeping my bonds more conservative and also having this diversifier and liquid alternatives, things like a great product, which you -- if you're concerned about inflation this is an opportunity to take advantage of the tips market. when the active overlay of

options and a skilled manager who was been able to manage to do better than the tips market and hedge inflation, then you have something like dpl, it is one of my favorite etf switches and equity -- which is an equity market neutral, it doesn't matter if the stock is negative or positive, those typically tend to be higher quality, larger cap names. so, these are just some opportunities we can look at as ways you can put things in your portfolio to hedge the probability of increased volatility in the market, continue persistent higher inflation and rising rates. paul: about allocation has that changed recently? >> cash inflation environment, at 8% is a losing game, you're gaining nothing on it. i would rather put it in things that are a bit hedged, into some

conservative hard quality equities with good dividend yields then keep it in cash. i also don't like timing the market, i would rather stay in it and pull out of it. i can see why people would want to be conservative. the dollar strong. if you're looking at it in comparison to other currency options it is still the best game in town but that is also a problem because again that emboldens the fed to continue their hawkish rhetoric. paul: the feds made it clear that they are getting inflation down, that's their number one priority. how long do you think it will be before it achieves its goal? >> if they continue to focus on the 2% number, it will be closer in time. because they have continue to reiterate, they want to see inflation stabilize, that means they want to see inflation not only trending lower but hitting or getting close to that 2% number and then staying therefore a persistent amount of time. which means i don't think they are going to be cutting rates in the next 12 months.

i might be in the minority in my beliefs but i don't think you will see rate cuts by the fed until 2024. paul: shana orczyk sissel thanks so much for your insights. she is capital --and she is management president at banrion capital. subscribers can go to day b , can custom-made -- you can customize your settings there. this is bloomberg. ♪

shery: a quick check of the latest business flash headlines, evergrande group said to be exiting its investment in the bank. on a option on the alibaba website.

$1.1 billion for the near 16% stake. evergrande will use the proceeds to obtain changing bank -- shengjin bank. it is said to be near you deal with fortress investments, fortunes could value the u.s. asset management more than to be in dollars. the key lieutenant to softbank is playing a key role in brokering the deal. we are told he could announce an agreement in the coming weeks. tencent is said to more than double at stake in ubisoft buying 30.9% of the gmo's money. the move gives the brothers time to get the company back on track and retain control, as governments will remain unchanged and tencent will not have any operational rights. paul: let's take a look at the day ahead for australia and new zealand. second quarter gdp in june, few

hours in australia. bloomberg economics sees growth expanding at a rapid pace. heavy rains may have crimped activities in a number of sectors. we are keeping an eye on mining shares, following a bhp statement that a looming surplus in copper and nickel, will give markets a bumpy couple of years ahead. shares of australia and new zealand banking group, after macquarie raised its position from neutral to outperforming. shery: take a look at the aussie dollar, holding steady, this of course after a plunge, after a boost, after we saw the rba raising rates, by 50 basis points. the japanese yen not doing much but i have to say i'm still amazed by the 143 level we are the japanese yen against the u.s. dollar.

it continues to be that a narrative of policy diversions getting stronger and stronger. we are talking about hiking rates around the world while the boj stands by. take a look at the nikkei futures are trading at the moment. not doing much. we were not doing much in the previous session either for the japanese stocks. kiwi stocks holding steady. i'm liking the clear direction of today's session. paul: yeah, look, we will have a bit more on the australia may have seen robust growth despite flooding rains and rising prices. we will have a preview of the second quarter gdp numbers later on. this is bloomberg. ♪ as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts.

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>> i vonnie quinn with the first word headlines.

he is part of a new look cabinet which does not include any white men in the top four readership roles. the new government will have one of the -- sky high inflation and surging energy costs. pakistan is facing more flooding after its largest lake reached a retaining wall. water inundated hundreds of villages downstream and could force thousands more people from their homes. pakistan's minister says damage from the floods will be greater then the $10 billion initially forecast. more than 1300 people have been killed. japanese prosecutors arrested three executives as a investigate the unfixed process. a fresh warrant was issued for the board member.

it is alleged he paid around $489,000 in bribes in 2019 and 2021. the company says it will fully cooperate with authorities. bank of america says it is planning an updated return to office policies that formalize some of the new flexibility the bank has given workers. the ceo told the conference the plans will be based on feedback. moynihan says the policy will add formality and will be specific to each business unit. 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. paul: australia's economy probably continued to expand in the second quarter despite rising prices and heavy rain disrupting a number of sectors including housing. the economics reporter joins us now. what are we watching out for in this report? >> the data is for the second

quarter and economists are expecting growth to have been strong. 0.9% for the quarter. 3.9% for the year. the growth is likely to be driven by consumption which is what is supporting the growth even today as we speak. paul: we have had four consecutive rate rises from the rba. have we seen the impact of this across the economy yet? swati: it is being felt in the property market. consumption is so strong like i mentioned but economists are saying that the impact will be felt towards the end of the year because there is a two month to three month lag. the predictions are that we will

start seeing a slowdown in consumption by december. >> does that mean that for now, australia is a little bit better placed? where are we at if it does hit? swati: that is a question a lot of economists are trying to answer but they are pretty hopeful. policymakers are hopeful australia will have the session and that is largely because they are confident that consumers will continue to spend because the savings rate is very high in australia compared to some other countries including the u.s. and u.k. we have a massive fiscal stimulus and the expectation is that will continue to drive and support economic growth for some while yet. paul: consumer strength is a bright spot here but you also

mentioned housing at the moment. can you give us a sense of the sorts of issues consumers might be facing with increased mortgage payments? swati: sure. i was speaking with a new homebuyer who is already in negative equity in probably six or seven months. they are also facing increased inflationary pressure. everything has gone up. the rba -- this is being experienced by a small proportion of people and the wider population is still able to withstand rising interest rates and inflation. whether the experience that i just talked about spreads economy wide is yet to be seen

because there are predictions that core prices will fall further from here. shery: we are hearing many of those stories. economics reporter swati pandey joining us from sydney, australia. time now for morning calls ahead of the asia trading day. we want to take a look at the health of u.s. companies, corporations, businesses. u.s. firms with high foreign revenues are likely to be more challenged versus their domestic peers, recommending investors switch out of such stocks. jeffrey notes that a strong dollar is decelerating global growth and said to make a double dent in the overseas revenues. the dollar's ascendancy is becoming a self-fulfilling prophecy as fed hawkish and his forces other exchanged rates lower, paul. paul: citi's bear market checklist is buying the dip in emerging-market equities. the screens show some red flags including yield curves, and

china debt. sydney says valuations look attractive. the bank is overweight. brazil and china seeing scope for policy easing and softening pressure on tech stocks. the deputy u.s. treasury secretary says russia's economy is facing years of hardship because of the sanctions imposed by washington and its allies. he also told us the kremlin is struggling to boost its economy to continue funding the invasion of ukraine. >> our view is that russia's economy is in a great deal of pain because of the sanctions we implemented with already other countries and the pain is going to continue for years to come and it's going to hit russia's revenues and decrease those revenues over time but it's also going to hit russia's supply chain that it is using to build weapons of war that it is using in ukraine and its ability to project power into the future. leading tank manufacturers do not have the chips they need to

produce precision missiles going forward. our goal is to make sure we continue to go after the supply chain but also decrease their revenues over time to make it harder for them to project power. >> in this report out of bloomberg today, russia will not recover until the end of the decade. it may go beyond that period of time. is that consistent with the numbers you are seeing? >> it comes down to human capital. those individuals who can leave russia are trying to leave russia. russia is shedding their borders from people being able to leave. they shut down the ability for people to take money out of russia. today, you are able to put money into russia but russian citizens and individuals outside of russia are prevented from taking money out which has led to a -- of the ruble. no money can escape. ultimately, this is putting the kremlin in a tough position. they have to make choices between using the revenues they have to prop up their economy or

to fund their unjustifiable war in ukraine. we will continue to make that choice harder by reducing the revenues. >> the price of oil has gone up. russia actually makes more money off of whatever they can sell which makes us all focus on this possibility of a price cap which is being discussed. the g7 said they want to do that. where are we in the price cap? do you need 27 nations to agree? >> you are right that energy prices have gone up after russia's unjustifiable invasion of ukraine because of the risk premium russia has created in the markets. it provides an opportunity for us to reduce russian revenue while allowing russian oil to continue to flow onto the market. our goal is to work with the g7 and implement this on top of the asked package europe already put in place. in may of last year, the 27 members of the e.u. put in place

a package that prevented russian oil from going into the e.u. after december 5. they also banned the ability for european services to be used by russia to carry oil. what the price cap would do is say we would permit services from the entire g7 to be used by russia as long as that oil is being sold under the price cap which allows the oil to flow, resenting price spikes, but would make sure that we hurt russia's revenue which we think is consistent with exactly what the e.u. wants to accomplish. we expect them to take action to implement this going forward. shery: the u.s. treasury secretary speaking with david westin. surging energy costs and rising inflation. pressures weighing on global currencies. we will take a look at fx markets. this is bloomberg. ♪

paul: let's take a look at what

is going on and currency markets at the moment. dollar strength continuing to be a powerful thing particularly when we take a look at the yen. one i must -- the ministry of finance for the possibility of intervention in japan. the aussie dollar weekend quite a lot yesterday after the reserve bank of australia's decision to lift the cash rate by another half percentage point and the chinese yuan remaining in focus as we continue to get drummer than expected fixes from the pboc. he is the global head of fx strategy at the national australia bank. i want to start with the australian dollar. it did weekend quite significantly after we had the reserve bank of australia lift the cash rate again. normally, we see the currency strengthen. is this more story about u.s. dollar strength? >> i think we have seen across a

lot of central-bank activity except for the fed. any support that comes from the currency seems to be rather fleeting. the other thing, our read of the rba and some of the wording in the postmeeting statement hints that we could be coming to the end of 50 basis point incremental rate rises. economists view is that from here, we are looking at that 25 being more likely than 50 in the next couple of meetings. the rba was still stressing the desire to try and keep the economy on an even keel while dealing with the inflation problem which is a contrast to the likes of the fed and those at the bank of canada who are hell-bent on inflation is going to come down to target at all costs so may be a hint that the rba has not got quite that hawkish disposition. onwards and upwards for the u.s.

dollar, new 20 plus year highs on various indices so that is first and foremost the story. paul: we will see continued weakness. the fed showing no signs of letting off the gas when it comes to tightening. >> that's right. the fed has got a bigger job of work to do so the markets have included expectations of where the so-called terminal fed funds rate would be. treasury yields poking above 3.2 5% overnight which tells us most of what we need to know about the weakness of the japanese yen. the markets are pricing about the economic risks inherent in more aggressive tightening from the fed and other central banks and we get the risk-off episodes, that lends itself to safe haven support for the u.s. dollar so it was really a case of the u.s. dollar can do no wrong the time being. haidi: the japanese yen is passed the one hundred 40 level and i am amazed at the level we are at right now. how sustainable is this?

are japanese authorities going to intervene in the markets? are we going to see a tweak from the bank of japan? how does this adjust itself? ray: the bottom line is that if the japanese authorities are happy with dollar-yen, sustaining a move above 140, the cons are starting to outweigh the pluses in terms of the impact of yen weakness, particularly what it is doing for household and businesses in terms of import prices from higher energy prices. something will have to be done. intervention is going to be an instrument that is going to have only momentary impact. it is not working with a grain of monetary policy. to a large extent, it would not be the case if it was coordinated with other central banks, tightening policy to be intervening. sort of contradictory. if they want to do something about it and coordinate with

boj, the only option is to do something with its yield curve control policy heading into that september 22 meeting. if we do not see any action in the form of a widening of the tolerance band around the 0% 10 year why cc target and if they -- wcc target, and you look at the chart -- technically, there is very little technical resistance above this 140 level until you get to the previous highs around 147 so in the absence of boj action on the 22nd, i think high levels are almost baked in the cake. haidi: boj meetings have become super exciting in the last few months. really, a different take has been what is happening with the chinese renminbi. we are seeing that trade surplus support coming for the chinese yuan. this chart showing how we are seeing the trade surplus hitting

records this year already. where is the pboc in here? we are seeing them also keeping the yuan fixing stronger-than-expected for a few sessions already. how comfortable are they? ray: it is hard to know how comfortable they are. what we have seen obviously, we saw that production in the fx reserve requirement ratio announced earlier in the week. that does not seem to have had any impact even though extensively, it frees up foreign-exchange that could be sold for support. we had days of protests in the form of dollar-won fixing rates all to no avail and yet we have the dollar cnh which hit above 6.9 seven tonight so highs there. if the pboc is really determined to stop the breach of that seven level, it will be much more

heavy-handed. the fact that we have seen all these various actions and dollars cnh is continuing to trend higher, maybe the chinese currency is a market-driven exchange which is not something i think i have ever said on a previous appearance here. they are trying to check the rise but in the face of unrelenting u.s. dollar strength, you would have to say that a test of that seven level looks mighty probable. haidi: currency pairs have become so exciting lately and i really love having you on so we can go through the array of pairs and i want to go to sterling because we have the latest changes in the political scene. we are getting the readout from the white house when it comes to president biden having a conversation with liz truss for the first time, saying they discussed china and iran energy. so many different factories in sterling right now. what is the driving force that? ray: think about sterling.

it has been a big underperforming currency in recent weeks and a lot of that has to do with effectively expectations for the size of the economic hold that the u.k. is destined to fall into on the back of those astronomical rises in energy prices coming down the pipe together with tax increases both from businesses and consumers. this gets away. they could be vanished overnight. she's pledging to use a huge amount of fiscal support to cap household energy prices. to the extent that means the economic outlook may be less bleak than otherwise, it does justify an unwinding of some of the shorting of sterling we have seen although looking further ahead, throwing the 10% of gdp at the economy in ways that will not enhance the underlying product to your growth rate is

arguably questionable as a positive force for sterling but in the short-term, we need to see details fleshed out. that is how it is going to be funded. we are less negative on sterling than we were previously. >> the euro falling to 101. ray: we have been saying for a while that we thought levels on euro-dollar down to as low as 95 are certainly possible given the recession that does confront large parts of the euro zone. we heard from the commissioner with proposals to try and provide a degree of support for household through a windfall profits tax on electricity suppliers. so if that comes to fruition, it may be the euros in economic outlook is not quite so bleak but then you compared to the u.s., look at the strength we are seeing in the numbers and the u.s. still looks like the ugly duckling.

for the time being, to change our view, the euro-dollar is destined to spend more time below parity. paul: thank you so much for joining us. a lot to talk about in the currency space pick coming up, plenty more to talk about on daybreak. this is bloomberg. ♪

haidi: i was mentioning how excited i was to be back from the holidays after labor day which is a turning point when it comes to new york and the return to work, back-to-school as well. are we going to see that return to the office as well in wall street? we are seeing goldman sachs and morgan stanley as welcome a clearing the final hurdles to bring the workers back. we have had a few false starts in the past. also you really have to think not only about, you know, let's bring all these workers back, but there has been a generational shift. there has been a mindset shift where you are thinking if we can get the same work done, i would rather do it at home. i think it will depend a lot on the power dynamics. are we going to try to retain all these employees? we will allow the more flexible

that? this is a crucial test that we have gone past the labor day holidays. paul: certainly in an era of labor market tightness and what those themes -- it did seem that employees have the upper hand in this debate but now, pretty much everybody we talked to on the show is talking about inflation and recession potentially coming down the pipes so we will have to see if that shifts the balance of this debate back into the power of employers but we will see how this unfolds over the coming months. a number of false ones when it comes to the return of office. let's take a quick check of the latest business flash headlines. juul has reached an agreement to pay money which will resolve a two-year investigation intuit's practices. juul must refrain from all youth

marketing, paid product was meant, and advertising on public transport. a group was explained strategic options including a sale in the city's most expensive hotel. the index told the property that -- $600 million in the transaction. it structures as a sale. could be the largest luxury hotel sale since the pandemic. -- wealth is closing in on the rings of jeff bezos and elon musk. the bloomberg billionaires index shows his net worth increasing by $65 billion to more than $141 billion, making him the third richest person on the planet. that is it for "daybreak australia." "a bric asia," next -- "daybreak asia," next. this is bloomberg. ♪

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