♪ >> good morning and welcome to daybreak australia. we are counting down to a mayor

-- asia's major market opens. shery: i'm shery ahn. fed officials continue to avoid commitment to fighting inflation. lael brainard says rates will have to rise. >> u.s. stocks climbed the most in a month as treasuries hold multiyear highs with oil sinking amid fears in global demand. shery: apple unveils the latest devices including the iphone 14 and the ultra apple watch. u.s. futures opened to a slight upside after the s&p 500 saw the best day in almost one month, 95% of companies on the s&p 500 actually moving higher. of course, energy was the only sector under pressure today, given the plunge in oil prices, the most since january. we are seeing concerns about recession, covid lockdowns in china. that is all affecting prices

now. at the nasdaq 100 is outperforming in the new york session. apple gaining almost 1% given the product lineup they unveiled. overall, we are hearing from goldman sachs that we not be -- might not be there yet when it comes to positioning, valuations. we are not at extreme levels yet. looking at the 10 year yield, we had it fall today halting the gains. the price of oil falling lessening inflation expectations. look at this chart on the bloomberg. given the rally in oil prices, the energy sector has outperformed any other sector. continue? all this is in question when you have recession fears. can you continue the narrative that energy stocks will

outperform? that is a key question. that narrative may be starting to change. we are seeing those stocks starting to fall. tom: we had a pretty awful day in the asian yesterday. up 1.4%. it looks like that will turn around today. we are seeing gains to the tune of 4%, some 1% futures here. about .25 percent of training now. the yen almost touching 145 again. dollar strength continuing to be one of the most dominant markers at the moment. the yen a -- easing back to 14375. we are hearing ever louder drumbeats for the potential of intervention into that. shery: we continue to watch rate differentials given what is happening with the japanese yen,

given inflationary pressure in the u.s. at a four decade high. it is about where inflation goes from here and what the federal reserve will do. we had lots of fed's speeches yesterday before they enter the blackout before their policy meeting. we heard from loretta mester declaring an early victory of inflation. the fed vice chair of supervision michael barr also. take a listen. >> inflation in our country is far too high. we are not close to the federal reserve target for inflation. i am focused and the fed is focused on making sure we do steps necessary to bring inflation back down to its target. shery: this is a very important at a time when we are seeing relief by the fed. we were seeing signs perhaps prices were moderating.

paul: yes. this is a lesson in what to expect when it comes to fighting the fed. the ecb, the bank of england, there is plenty of other central-bank action coming up this you -- this week. u.s. yields are easing. they came close to reaching 2016 lows we saw around the brexit debate. traders were not sure about the boe commitment to tightening and the plan to cap energy prices in britain. the bank of canada tightened as expected. the european central bank later on, 75 basis points are likely. conviction amongst traders suggests they are not completely sure about that either. today he will be delivering a speech in five hours focused, surprise surprise, on inflation.

for more let's bring in our global economics and policy editor kathleen hays and andreea papuc. , what was your take away? kathleen: they are staying on message. they will keep hiking rates. lael brainard, the fed vice chair does not speak as much as other officials so when she expressed views today everyone listened. >> we will responded to get inflation down. we have expeditiously raised the policy rate to the peak of the previous cycle and the policy rate will need to rise further. shery: there will be a fed -- a point where the risk will become more too cited. but for now, she says policy needs to get more restrictive. she sees more rate hikes needed.

as for the beige book, it is regional districts. 12 districts that gather anecdotal evidence to say, where is the economy going? crosscurrents, strong retail sales, strong labor markets, elevated inflation. down the road, looking for a slowdown. as for now, that is putting out the message that the economy is strong enough to keep hiking. michael bar says the fed is focused on inflation fatigue. susan collins, the president of the boston fed says she is undecided on the size of the hike. she will watch more data including the cpi next week for 50 or 75, but she agrees that more rate hikes are needed. i would say that is the message today. the only question is, how big? we will find out maybe when we get the cpi report how they might lean. paul: there is a somewhat relentlessly hawkish commentary

coming out of the fed. we saw u.s. markets rally despite that. what's going on? andreea: we did. look, i think there are a couple things here. you did have that price drop -- the oil price drop quite a bit. you could argue that lessened some worries about inflation. you also saw yields fall back. the previous guesstimate a really good point. -- guest made a good point. there is a lot of cash swirling around. anytime we have selloffs there is incentive for people to come deploy that cash and try to bottom it. we have seen these for the last several weeks. we get a pullback. then we get a bit of a rebound and then another pullback. i think people are still trying to work out where the bottom is.

we have -- from what we are hearing, we have further weakness to come. this gyration in this environment where you do have mixed signals, yes, you will see these bounces. but we are not out of the bear market. paul: kathleen, we will hear from the european central bank later today. the consensus is a 75 basis point hike. is that completely baked in? kathleen: not at all. jackson hole and the ecb board said they have to worry about inflation getting entrenched. jumping to the conclusion they will make 75 basis points, it's a tough decision for the ecb and expectations have eased back a bit to a 65% odds of a 75 basis point move. last couple weeks it is 80%. people are thinking this over

again particularly after the european energy crisis exploded causing governments to get lots of funds for citizens, businesses to help them pay superhigh energy bills. germany did fall for the six months in a row down one point 1%. although, the gdp number was stronger than forecasts. the central bank governor of black yeah is saying that a protected recession could -- protracted recession could slow the pace of rate hikes. they will not hesitate to boost their key rate above neutral. we will see in the next 24 hours what they decide. shery: whether it is 50 or 75, the ecb is hiking. canada hike. malaysia is expected to hike. no wonder there is so much pressure for the japanese yen. what do we expect for the u.s. open in japan and opens across asia? andreea: that is right.

the yen is up 20% this year on track for the worst year on record. that has seen some of the strongest comments from a senior japanese government officials including the finance minister. he cited a one drop in the yen. they are watching it very closely. with a sense of urgency. so far, it has not done anything to ease that pressure on the yen. as you said, it is a rate differential story with the bank of japan. it looks likely to be rate slow compared to central banks around the world. -- rates low compared to central banks around the world. as long as you have that, this is seen as a dollar strength rather than yen weakness story. the market is on alert for anything that officials might do to intervene. but at this point, the yen will continue to be under pressure.

paul: global economics and policy editor kathleen hays and cross asset aged -- asian editor andreea papuc. on thursday the ecb will hold its first monetary policy meeting since july and analysts expect a 75 basis point hike as the energy crisis rips through the euro zone sparking inflation. the ecb last raised its key rate by 75 basis points in 1999. apple unveiled a above devices with few surprises beyond one, it did not raise its u.s. prices in the worst year for inflation in decades. let's get the details with bloomberg technology editor emily chang. how sustainable is it for apple to keep prices low as inflation rages across the world? emily: apple is making a bet that if they keep prices low more people will upgrade. it is pretty significant that

you can buy a new iphone 14 for the same price you bought in iphone 13 last year. the question is, are consumers going to do it when they are already paying more for gas and groceries? when you look at the new iphones, perhaps the most significant development when it comes to the iphone 14 is new satellite capabilities. that means you can send an sos in an emergency situation even if you do not have service. that is a significant technological upgrade when you are looking at a faster chip, better camera and video technology. it will definitely be interesting to see what consumers pay for when, as you say, inflation for everything else is at a record. shery: bloomberg technology anger emily chang with the latest from apple. over to vonnie quinn with the first word headlines. vonnie: the chinese city of

chengdu is extending a lockdown as it tries to settle the spread of covid. 121 cases tuesday, up from 90 monday. a lockdown has already been in place for a week. u.s. national security advisor jake sullivan is concerned about some elements of a congressional bill aimed at supporting taiwan. sullivan spoke to bloomberg ahead of a meeting with lawmakers about u.s. policy towards the island. the bill would designate taiwan as a major non-nato ally with $4.5 billion in security aid. vladimir putin is blaming western nations for the shutdown of nord stream pipeline. the russian president says gas flows will resume as soon as sanctions are lifted. it is the first time putin has

commented on nord stream since the gas conduit was closed indefinitely. >> everyone is saying russia's using energy as a weapon. more nonsense. we are not delivering gas into the air. there are two lines of gas delivery. ukraine shut one line down under the pretext it was not in control of it. ukraine closed it, not us. vonnie: ukraine's top army commander warned russia's war is likely to stretch into 2023. he pleaded for allies to send longer ranged weapons. vladimir putin says his country will emerge stronger from the conflict, lashing out at what he says are dangerous sanctions from the west. global news on air and bloomberg quick take powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn and this is bloomberg.

paul: coming up we discuss all things apple. we will be talking strategy with allen kenitzer, who thinks that the stock market has been trying to follow the fed, but failing every time. this is bloomberg.

shery: u.s. futures slightly higher in that asian session. we have the nasdaq 100 outperforming. the only sector down was energy, oil low 80's five dollars a barrel for the first time since january -- below $85 a barrel for the first time since january. the 50 day moving average below its 200 day marker. further pressure on oil. our next guest says the stock market has been trying to fight the fed, but failing every time. danny genter of genter capital management. a big component of the rally has been energy and now that sector seems to be faltering. what will drive the stock markets next? dan: i think you are seeing the

overall market trying to deal with the data in front of us. when you look from a u.s. perspective, the economy is in pretty good shape. the fact is, when you look at earnings growth, when you look at inflation and some of the number starting to subside, we are in a position where the market is fairly valued. a lot of cash on the sidelines wants to be put to work. they are fighting an unexpected outcome of what is going on with the fed. if the fed stays within 75 basis points of where we are now, we could be closed to 230 this year, 240 next year on the s&p. where we are at now is very fair. every time they see good news they will put money in. when the fed doubles down to the -- with regards to the other fight against inflation we see major pullback. you have yen and yang that continues. >> goldman sachs thinks that

bear markets have not been -- bear market status has not been released yet given the positioning now. where do you stand on that? if we see more pressure is there a possibility the fed put might be in play later on as we go towards recession? dan: absolutely. from the u.s. perspective for professionals like myself making these decisions every day, we are accustomed to the fed trying to talk the economy back. we keep looking at that saying, what are they seeing we are not seeing? it seems they are somewhat assessed, if you will, with an inflation number, and they will not stop pumping the brakes until we see definitive, concrete reduction in the inflation number. that keeps resetting the bar. you keep resetting with higher capital rates. easily, we could pullback into the high fourteens, low fifteens on pes based on next years

earnings and that will be more pain until we find equilibrium. paul: in terms of velocity, it wasn't too bad. what sort of declines to you anticipate? dan: right now about 16 based upon the current level. we are really at an equilibrium point. you see earnings that now get adjusted down from next year's estimates at about 243. now we are coming back to the high 30's. we will come down another multiple from where we are now. you start to look on a percentage basis. what is the risk for another 6%, 7% of downside from these levels until we find a basing pattern? paul: on the bright side the job market is still very strong. how long can the consumer space

last in the place -- face of these inflationary headwinds? dan: not only will they have problems in the future, you are already seeing kinks in the armor. we are clearly seeing it in consumer durable items. on a longer basis, and a california housing prices in the last month's 10%. we are seeing the effects of higher rates. we are seeing the effects of higher mortgages. those are real. the average mortgage is up $700 a month. the average family is paying almost another $2000 a year in energy prices. something is going to give. when you see the effects of that, clearly, you will see slowing gdp growth as we go into this. this will ultimately effect earnings, especially if the fed stays preoccupied with continuing to raise rates. paul: dan genter ceo and cio

of genter capital management, thank you. we have more to come on bloomberg daybreak australia.

♪ shery: here is a quick check of the latest his newsflash headlines. a quarterly loss of $396 million as covid lockdowns hit the ev maker despite revenue increasing to $1.4 billion, beating estimates. nio bounced back after being smashed during the april lockdown. the ceo says it is aiming to scale up production in the second half. china says it will take every measure to defend itself against opposition in hong kong. the developer says the petition is an aggressive move by an individual creditor with a small holdings. sunac says it will not have any

material impact on the restructuring that began after defaulting in may. paul: let's look at the day ahead for australia and new zealand. a speech at the attica foundation in sydney. an annual speech, this time he will be talking about inflation and monetary policy. australia's july trade and new zealand second-quarter manufacturing as well. economists predict australia's focus to narrow. new zealand may scrap mask mandates as soon as next week. currencies is where the action is at the moment. dollar strength is continuing to be a major thing. look at the yen, pulling back a little 143.92. still extremely weak. we came in touching distance of 145 against the greenback wednesday. a number of policymakers in

japan are commenting about he in weakness. the korean won at a 13 year low against the dollar, 1384 point 41 last traded. the aussie dollar we watch today as well as rba governor phil low makes that speech. more on the apple decision to keep prices steady. this is bloomberg.

♪ shery: vonnie: the feds latest survey says high prices and a tightening market will weigh on u.s. economic prices in the next year even with inflation showing

signs of deceleration. a report shows price levels remaining high with food, rent, utilities, and hospitality services increasing substantially. the fed vice chair lael brainard says the central bank will have to raise rates to restrictive levels and warns it will become more in the future as more fed officials also voiced commitment to fighting inflation. policymakers are using the time before their premeeting blackout later this week to ensure investors they will not blink. >> we are in this for as long as it takes to get inflation down. so far, we have expeditions as he raised the policy rate to the peak of the previous cycle. the policy rate will need to rise further. vonnie: the bank of canada delivered a fourth consecutive outsized interest rate hike, dragging inflation down from a four decade high odyssey makers raised the benchmark rate by 75 basis point. canada now has the highest rate

among major advanced economies. officials plan to raise rates more in coming meets -- months. xi jinping will meet with vladimir putin, the first in person meeting between the two since russia invaded ukraine. this marks xi jinping's return to the world stage after staying in china throughout the pandemic. bloomberg quick take. it's time for morning calls. bnc paramount saying corporate earnings in asia could stabilize from here. some companies in asia, aggregate earnings were only .4% thanks to energy and industrial firms come out more than the nine percent disappointment for the s&p 500 index, suggesting earnings were stabilizing. bnp paribas also noted that

china, south korea, and india are also showing downgrades. paul: is goldman sachs sees more downside pain in asia there is an and center in economic -- uncertain economic outlook. markets are likely to see downward revision. weakness and manufacturing exports are drags on the countries. goldman is more upbeat over southeast asia, countries including indonesia backing the global equities slump. let's take a quick look at how apple suppliers. apple made an announcement that the iphone 14 and a number of other products. apple is little changed after hours. same story for qualcomm and texas instruments, the only mover there, but not a lot -- a

huge amount of change. the same could potentially be said for the products unveiled themselves. from the event in apple, bob o'donnell, the chief analyst at tech analysis research. we have gotten rather accustomed to apple blowing our minds in the past. do they still do this? what is your take away from the products? bob: look, they were incremental improvements. most of these are things to be expected. we saw improved iphones, improved watches. but it is the little extras you look for from apple. in their case, you could argue it is the satellite communications and they offer now with iphone 14 as well as is the zoom capabilities in the iphone 14 as well, especially the proseries. these were things we expected so seeing the market not move a lot is kind of the way it would be. they are working with globalstar

on the satellite side. that company will potentially see benefits down the road. i think that was the part that was most suitable. like, will -- most questionable. like, will they do it or not? it is emerging as a feature of this. it is protecting and holding in the u.s. and canada too. it is still a step forward. it is a big technology leap and i think we will see other companies do this as well. the mainstream consumer will say, yeah, ok. if i am on an iphone x, maybe it's time to upgrade. if i am on apple watch three, maybe i will upgrade it now. paul: particularly the case is tempting people to upgrade by keeping the prices lower. how can apple keep prices down as we see inflation rises across the world? bob: in a lot of ways the pricing was the biggest surprise

because about everybody expected a hundred dollar implement in -- increment in prices. but apple kept prices where they were. on the watch that they just introduced, it's pricey. $700 for a smartwatch is another league. but it is targeting an active consumer. for people who do skype dial -- scuba diving, my daughter does scuba diving, they are expensive. so to have an app that works as a dive computer is compelling for those folks. shery: as a woman who is afraid of everything i love the sos focus on the security aspect of everything. but i also have to wonder, is it really compelling enough? especially when it comes to perhaps slightly better cameras in previous iterations as well.

will this upset the price hike that did not happen for apple this time around? bob: great point. some people will say, yes, it is enough. but we are way past the era of people upgrading every year or even every other year. this is a more mature market where people are like, yeah, every four or so years is when i start to upgrade my phone. when you make the comparison between this phone and, again, four years ago, there's a big difference. i think that's where a lot of questions will be. the safety stuff i think is nice. it is nice to have. another thing we are seeing apple do on the watch. for women's health as well and on the phone. it is centrifuge and -- since her fusion -- sensor fusion. each one has a little more data.

they have more insight into your health, crash detection on the phone. nobody wants to have to use that. it is sort of like having insurance. shery: is there any indication now of how apple is taking the new lockdowns and restrictions in china? foxconn is now saying it is not affecting the operations of their factories yet. but in the long-term strategy for apple, how does this play that we still have low priority over covid zero? bob: remember this iphone event this year was as much as two weeks earlier than the past. to me that indicates they must have the supply chain in reasonable shape, because they are offering a of these new products available in a couple weeks.

that's a good sign the supply chain is ready. to your other point, i think we will see continued diversity of apple supply chains, from suppliers starting to build in india, in southeast asia. i think we will see a lot more of that, not only from apple, but from others. but apple being the big mover in that case, i think it will be a reflection of where the overall supply chain market will going and it will impact china because of not only covid concerns, but, geopolitical tension as well. paul: ahead of the event of there had been speculation that maybe we would see a steve jobs style just one more thing type announcement around a vr headset. we do not get that. is that something you are anticipating in the future? bob: absolutely. that was in the back of my brain as well, the little, maybe that will happen. but we will see it sometime

soon. unlike most apple products, we will probably see it well in advance of its public release. because, if there are applications for this device, it will take a wild. they will have to unveil it to developers so they can build applications. it is great to have cool hardware but it is all about the applications that will run on the device that make get something people want. because of that i think apple will have to break tradition with vr headsets, announcing it much sooner than you will be able to get it because developers will need time to create something. this is a radically new formfactor and idea for a lot of people to deal with. shery: how is apple faring compared to competitors? androids operating system, for example? bob: here in the u.s. apple has about 50% share. it is an apple and sand some --

and a samsung world for the most part. we have seen motorola, other smarter -- smaller players. lg is out of the smartphone business. in china, you have the wall ways of the world. outside of that it has been more chinese -- more challenging for chinese players. apple has been able to hold that off for a while. we talk about high-end products. in many parts of the world apple will waterfall older products and bring them to more attractive price points to countries with demographics and income levels that are lower. that is the other side of the story. lower end prices become a available. a new apple watch at the same price at the previous one. they have about five different models still in the line, down to $429 u.s.. that is a broad range of price

points. shery: bob o'donnell good to have you with us from california, the president and chief analyst at technology research. coming up, with a strong u.s. dollar and demand concerns weighing on oil prices, a deep dive into energy prices next. this is bloomberg.

>> let's look at energy prices. we are seeing downsides for wti trading in the moment. below that $82 a barrel level. we are talking about it falling below $85 for the first time since january. we might see even more selling pressure as we continue to see new technical forming of the oil price. we are expecting to bridge the open but we have already seen a 5% loss. gas prices down the most since june. we saw a rising production and milder weather may be relating -- leading traders to shed some bullish bets on gas. let's bring in su keenan. it's not just lockdowns in china, but the technical, the dreaded death cost. that death cost is something a lot of china watchers pay close attention to. we have not seen this since

2020. it means linda 50 day moving average falls below the 200 day average. it is a major selling signal that means lots of short term investment and further selling pressure ahead. that chart vividly demonstrates how the selling pressure really kicked in particularly over the last couple days, mainly in the latest u.s. session. trading in new york saw a close near 82 again. that is a significant drop. also looking at brent crude pressure there as well. one senior energy trader says there is no way to have position and place that's when the market trades with limited liquidity. that is a theme we are starting to hear a lot, limited the quiddity. risk rewards can start there. there is a growing fear that chinese covid zero policy means even lower demand from the biggest consumer of oil. we have a surging dollar,

bearish for commodities in general. the u.s. cutting its annual oil production targets for the fourth month in a row. we are dealing with unprecedented volatility since war in ukraine. all of those sanctions on -- on russia are resulting in the limiting of gas to europe. the u.s. has its own energy crisis booming on the west coast in california. you are looking at a dramatic surge in electricity prices and electricity use in california because of heat. however, california has narrowly avoided for the second day in a row, warnings of rolling blackouts. this has residents in the state on tenterhooks given the situation. >> europe's energy crisis is getting worst as well. what is the latest on the eu?

su: eu for -- officials will be in brussels friday. they want to halt the crisis. one of the immediate needs is to supply liquidity to energy traders that are really struggling to meet heavy collateral requirements, margins requirements by the exchanges. one of the things they want to do is save -- cut electricity demand by 10%. the block is considering capping prices paid to russia for import gases. they are also seeking to pullback excess profits by power and oil companies. we will see how that plays out. let's talk about the nord stream pipeline. that's the crux of the crisis. right now, vladimir putin's russia is the necessary pipeline to get gas to europe. the pipeline has been in and out

of maintenance phases for months now. right now prolonged maintenance has elevated concerned that vladimir putin might use this as an excuse to completely cut off gas to europe. it vladimir putin has said the situation. that if it could buy turbines or other equipment to fix the leaks causing maintenance issues, gas would flow more readily. the nord stream is causing pretty much everything power related in europe to surge whether it is natural gas, power, coal. that gas prices are up more than tenfold. that is because we are seeing the amount of gas and to europe drop dramatically -- into europe drop dramatically. shery: we have a view when it comes to the energy crisis in europe coming from the u.s. oil and gas producer conocophillips saying that they are struggling with how to respond to the

energy crisis. the chairman and ceo ryan lance told us that plans to tax profits from the energy industry will hurt profits long term. >> the energy industry has elevated is position and we are going through a tradition that have to do it sustainably. they are trump -- struggling to write the policy. some of this will have the unintended policy of reducing supply long-term. i think they have to think through how they will manage their supply situation and what it means to eliminate russian supply both from the oil and gas side. it is a gordian knot. it's a really tough thing they are going through. you will put your money in other places and a supply will go down while demand is still out there. >> you are an oil company.

the investments you have been making in lng have been tremendous, and equities stake in the u.s., your investment in qatar, starting a u.s. hydrogen plant. what is the runway to profit for lng now? >> we look at a couple transactions over the last couple years, particularly our contract positions and shell acquisitions. if we did that we knew that gas production would be rising over time, long-term. the lng market, gas is a transition field. this led to wanting to increase our position in qatar, grow our position in australia. and optimally be in a lng position in the u.s. so our gas does not get stranded and we can take advantage of some arbitrage we have seen long-term. this very good long-term position led us to the recent decision to partner with port

arthur to grow that further west coast lng position as well as grow further in the lng side in the gulf coast. more recently you referred to jara. this is working for a customer we have known for 45 years who is wanting to transition into green and blue hydrogen. we will look at that together. we know how to inject co2 back into their round and we have the land in the gulf coast to do that. we are working with them to understand if there is a business we can create that will give us decent terms and satisfy their long-term needs of transition. >> what other kind of partnerships? what other opportunities? >> we are leaning in. we will see more capital. we are growing the company. we have in the portfolio today, $20 billion of resources has a private average of less than $30 a barrel. that creates the margin, the return in our business. we are giving 30% of our cash on board back to shareholders every year. we are keeping other satisfied

and growing the company in the same time. paul: ryan lance speaking exclusively with bloomberg's alix steel there. there is plenty more ahead on daybreak. this is berg. -- bloomberg. >> bloomberg daybreak: asia not --, asia -- bloomberg daybreak: asia.

♪ shery: u.s. national security advisor jake sullivan says the chinese invasion of taiwan remains a distinct threat.

sullivan says the biden administration has not changed its position over the islands status despite chinese claims to the contrary. >> it remains a distinct threat that there could be a military contingency around taiwan. the people's republic of china has stated its official policy that it is not taking the invasion of taiwan off the table. that remains one of the potential options for the reunification of taiwan. their position has been changing over time in terms of the disturbance of the status quo across the taiwan strait, the actions they are taking with their military to undermine peace and stability. the american position has remained steadfast and consistent. a one china policy, the taiwan relations act. three joint communiqués we agreed with with china in the 1970's and 80's that laid out from our perspective how there should be no unilateral changes

to the status quo across the taiwan strait. we continue to believe that end we will continue to push against any effort to change the status quo by force. >> there is legislation now moving through congress to toughen up existing support the u.s. has for taiwan. the strange and developed a position on that yet? >> i will have the opportunity later today to go up the hill to talk to members about the legislation. i prefer the opportunity to lay it out for them before i lay it out on tv. there are elements of that legislation with how you can strengthen security assistance to taiwan that are effective and robust and will improve taiwanese security. other elements give us concern. paul: jake sullivan they're speaking on the david rubenstein show peer-to-peer conversations. to watch more of that interview turning -- tune into

peer-to-peer conversations on the 10th and 23rd at 9:00 p.m. eastern time on bloomberg tv. in the next hour, china's margins plunged to the lowest level on record last year as people delayed plans to start a family. we have more on that shortly. plus, on track for the worst year on record, a look at the fx market. that is it for daybreak australia. daybreak: asia is next. this is bloomberg.

♪ welcome to daybreak: asia counting down to asia's major market open. paul: stocks are set