shery: welcome to "daybreak:

asia." we are counting down to asia's major market opens. >> further signs that inflation may have peaked. hsbc plans brutal controls and billing on military successes. shery: u.s. future slightly higher in the asian session, we had a little bit of optimism that perhaps ablation might be peaking. we will get u.s. numbers on tuesday in the u.s. apple one of the big gainers today. wti continues to gain ground, we

started the session a little weak in new york but it got better throughout the day given that we had a weaker dollar helping with the commodities rally. today we have the curve steepening a little bit after a week option. paul: a positive day on austrian market yesterday, higher by 1%, setting up for more games -- gains today. a great deal of change on the aussie tenure, waiting for those consumer confidence numbers a little later on. the given gaining against the dollar. the aussie dollar holding pretty steady against the greenback right now. shery: we are watching the shifting narrative in ukraine and what that also might mean for the markets. ukraine seeking more weapons along with continued u.s. support to build on successes retaking territory from russians

controlling one region. this shift not only in the narrative but the way the war and the invasion of ukraine seems to be going. what is happening right now? >> we've had a succession of narratives and markets move on narratives. there was a belief that one point that ukraine was going to fall within a matter of days. for the last two months, there has been a belief that russia is going to win more or less inevitably through war view trish -- of attrition, which is how russia always wins its wars. that somewhat distasteful is something market can more or less -- what we now seen is a startling change in the narrative, change in the perception of where we are in a

continued possibility that ukraine could in some way win the war. that's a very big new departure. it does suggest first of all that there should be an opportunity for considerable gains in markets. i don't want to reduce a war to discussions about how much stocks or bonds should be worth, but it also obviously increases risk because there is something ugly but stable about the situation that is developing over the last few months. there are questions about what the russian response will be. paul: john, of course you can't take attrition off the table just yet, winter is approaching and that could seriously slow things down for both sides. have we seen the full range of what russia might be willing to do yet? john: i wish i knew.

obviously did -- obviously they do have certain capacities, i don't want to use the"n" word which is very scary but not beyond the possibility of imagination. in terms of what is more likely, or indeed i think very likely now, the economic war over energy is likely to intensify. russia doesn't want the west to sin anymore weapons to ukraine and the best way to get that is to make life really, really hard for western europe, and we've got to face the fact that already it has not particularly concerned markets in the last few days, but that is the risk that there was a reasonable chance for a while that the

conflict would steadily alleviate itself, but that a pleasant at -- unpleasant and an taste of compromise would allow the west to consider -- continue using russian energy. that possibility is reduced now, so in the longer term this is possible that it will be a big cumulative when for europe, but in the shorter-term the risk look higher than they did a week ago. paul: goldman sachs is backing on the biggest round of job cuts since the start of the pandemic. new we know how deep these cuts are going to be and where they are going to happen in the business? >> what it means if you're thinking nor to 1000, if we think back to pre-pandemic, it

was common practice for the banks to cut about 5% of its staff a year. during the pandemic, as most banks did, it started to introduce job cuts again. now they are in the challenging environment that they've highlighted, they are now coming out with plans to cut several hundred, and we can probably expect other banks to follow suit. shery: it's really a difficult and challenging time for these banks, you are trying to cut costs, but at the same time you have inflation. hsbc now potentially pointing to hiking salaries at this point. >> that's right, hsbc, if you

think about it staff, and has about 220,000 employees compared to roman sacks which has about 47,000. they're facing that twin challenge of its one thing to retain staff and make cuts while -- it's going to be one where they have to take these brutal measures with the cuts that are coming. we've son -- we've seen some banks start to trim mortgage rates, and how it all fits into compensation for the year is going to be interesting to see. shery: sally bakewell there, we are very much watching what is happening to those investors.

hoping u.s. inflation mate show cooling prices before the fed's rate decision next week. kathleen hays joins us now, and of course we are expecting some easing, this chart on the bloomberg showing how as prices have come down, a little bit of easing on those numbers. with this really change the calculations for the fed? kathleen: it certainly will make the fed hopeful, but it is not enough. i will have to see actual changes, actual reductions in inflation. the trip late main -- prices down, falling for 90 straight days. they fell last month and the month before. when we look ahead to the headline number, expect to see august bpi down, it was flat in july. as you look at the next terminal and think about what is going on

and what we're going to find next. the cpi was seen easing to 8.1% year-over-year from 8.5% in july. it was 9.1% in june, so that is good progress. but think again, it's good to see commodity prices falling but let's think about this. the core cpi, if you move onto another chart, wages are rising faster -- inflation is rising faster than wages. that will feed into services, rental prices are expected to keep rising. core cpi is expected to be up, and 0.3 percent for the second month in a row. the core cpi is seen rising, 0.2% to 6.1 percent year-over-year. it is going the wrong direction. rental prices in particular are expected to keep moving higher. so with that, the sense that yes, were getting some relief,

put that on top of two very strong job reports in a row for july and for august. that trumps anything on the inflation side. jobs are strong and employment is low. the fed has to see a lot more than inflation peaking, that is not enough. it's got to start coming down, especially after the fed governor signal that on friday. i think they will go with 75 for now and see what happens next. paul: kathleen hays there. that's get to vonnie quinn with the first word headlines. >> the u.s. just apartment is said to be looking into companies like amazon and jp morgan, prosecutor sent

subpoenas ask about transactions with lou chip stocks. authorities are looking for evidence of market manipulation. ploys in beijing must now show a negative covid test taken within 48 hours before returning to work. the city is battling a new outbreak that hit schools. officials say the university will start online classes on tuesday in the situation at two other schools is stable. president biden has signed an executive order to boost bio manufacturing and reduce reliance on china for new medicines and chemicals. the u.s. has one of the world strongest biotechnology industries, according to analysts. some high tech production has migrated abroad. european union with the move

step towards rationing energy. other measure include -- the executive arm needs signoff from member states. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: still ahead, jp morgan says -- we will have a look at emerging markets later. hold on your equity allocations over the next 12 months. more of the market outlook, next. this is bloomberg. ♪

>> based on her current assessment over the governing council's neck several meetings, we expect to raise interest rates further, to ensure the timely return of inflation to our 2% medium-term target. paul: isabel sheen able there on rate hike expectations. she recommends adding duration

and holding allegations and doesn't see a recession as the most likely outcome of the next 12 months. one of your calls is to add duration and hold onto quality names. how long do you see this current environment of volatility lasting for? >> i think it is an environment that could really last quite a while. we still don't have the market grasping the full narrative that the feds put out there. they just want to hold them there for a long period of time. in london, the market is still expecting a higher rate, and that is going to continue to bring in volatility at least for the next couple of fed meetings we see until it becomes clearer that the fed will deliver what it says it's going to deliver. paul: so recessionary call in

there, but you don't see recession as the most likely outcome, do you? isaac: we don't think a recession, and outright economic recession is likely. we think what is going to happen here is that the fed will get rates to restricted territory and the economy will slow. the u.s. economy will slow to below trend. but it won't tick down into recession. this will be an environment where inflation is slowing and margins are somewhat protected. new growth is ok, but not phenomenal. we think earnings could be relatively good next year in the u.s. and we are talking about high single digits here. the market currently looking to 4% over 2023. we think that's a little pessimistic relative to the likely economic scenario.

shery: this chart on the bloomberg showing a set those that don't have exposure to foreign markets have outperformed those that do, given the strength of the dollar recently. isaac: it's an important question. i think there's a few factors helping to support those domestic companies rather than the ones that are exposed. a big part is there are parts of the world that we would classify as being in recession already. europe and china with think are in recession. europe is really just starting out. that's kind of a painful diversion so over 2023. we haven't seen it in 2022 because the market is probably going to be a little bit -- they are still not coming around to the view that europe will see a

recession. it will be a painful one that is protracted. that will be a challenging scenario for those companies next year. you say that china is also in recession, will the covid zero policies be enough to bring the economy back on what are the implications on the market there it's an absolutely necessary condition to allow china to escape a recession. i think it will also need more monetary policy support, more fiscal policy support and perhaps more credit support. one set covid zero policy is rolled back, and we think we will start to see that being rolled back at the end of the year, then china will start to exit recession and that will be a very positive outcome relative to what is a pessimistic set of circumstances in the chinese equity market at the moment.

paul: we do have the party congress coming up in china. do you see investment conditions changing materially after that? isaac: i think in time it will. after that national congress in october, i suspect there will be the opening of internal chinese borders and gradually that will lead to opening of external borders as well. that policy change will be really important and i think it will be managed cautiously. there may be a rush to reverse this but at the end of this year are early next your is when we will start to see those changes that will be so important for china to get an escape velocity from what has been very weak growth and a recession over most of this year. shery: will easing inflationary pressures in china be enough to promote that monetary stimulus that everyone has been looking

forward to? isaac: it's going to help. we are clearly seeing inflationary pressures remain pretty contained in china. i think it is coming anyway, i think the authorities at the pboc are fully aware that it's causing a recession. they're looking to see about boosting more rate cuts over the end of the year. i think we will also see some credit support for the housing sector targeted, not widespread. that's going to be really important supportive policy, even though covid zero will continue for a couple of months at the very least. shery: we have more to come on "daybreak: asia." this is bloomberg. ♪

shery: we are counting down to the start of trade in tokyo and seoul. some of the stories were watching over in japan, cpi news within the hour and they're expecting prices to ease up. toshiba has halted operations on it semiconductor facility because of a power disruption. some lines how resumed operation on monday. the health ministry has approved pfizer and moderna vaccine's targeting the omicron variant, paving the way for the rollout in the world's third-largest health-care market. south korea coming back from holidays and this is what were watching. releasing meetings -- minutes of the meeting, voting for 25 basis

point hike. we have the numbers for the first 10 days of september, exports rose during the previous month and we are watching shares of apple suppliers in asia after preorder data for the latest versions of the iphone open to strong demand. paul: let's get a quick check of the latest business flash headlines. the consortium to -- us been said to call off talks. the bid was $14 billion u.s.. were told the -- that will not be going higher. intel is scaling back projections in the face of a broader stocks slump. sources say could delay the share sale until next year if conditions don't improve. they expect the ipo to value add

up to 30 billion dollars, which is less than they originally hope. twitter rejected a third attempt by elon musk to cancel his agreement to buy the social network the day before shareholders vote on the 44 billion dollars deal. according to the filing, his motion to dismiss the deal is invalid and wrongful. wall street banks have kicked off the second part of a $15 billion debt package for the buyout of its citrix systems. a group of lenders ed buck credit suisse will hold the call on tuesday for a $4 billion secured offering. it is widely seen as a bellwether for markets. shery: kiwi stocks are losing ground, this is we continue to watch the kiwi dollar unchanged. we are looking forward to that

second-quarter gdp numbers out of new zealand. the japanese yen holding within a range, we did not see the boost we got, warning against given weakness being supported so we continue to watch the low against the u.s. dollars. sydney futures pointing higher .6%. still ahead, why asean has headwinds still persisting. there is more on that pst. girl. you can do better. at least with your big-name wireless carrier. with xfinity mobile you can get unlimited for $30 per month on the nation's most reliable 5g network. they can even save you hundreds a year on your wireless bill over t-mobile, at&t, and verizon. wow. i can do better! yes you can! i can do better, too! now you really can do better!

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bonnie: this is "daybreak: asia." ukraine is seeking more weapons along with continued u.s.

support. a senior ukrainian official tells bloomberg they also need armored vehicles and tanks to secure victory over russia. >> we need ammunition. we need more tanks. definitely we need more and more weapons from our western allies as soon as possible. >> king charles the third has vowed to uphold britain's democracy, bowing to status politics during his reign. he held the institution as a living and reading entity for democracy. >> my lords and members of the house of commons, we gather

today in remembrance of the remarkable span of the kings -- the queens dedicated service to her nations and peoples. she sets an example of selfless duty which, with god's help, and your counsel, i am resolved faithfully to follow. >> blue origin has aborted a launch shortly after takeoff in west texas. it threatened major failure. no people were on board the rockets. japan has approved pfizer and moderna's covid vaccines targeting the omicron variant. modernity is is deliverable to

those 18 and older. there are plans to expedite a booster rollout before the winter. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. paul: indonesia's finance minister and the standard chartered ceo told us about asia's post-pandemic recovery and the outlook for inflation amid fuel price hikes and the energy crisis. >> this increase will be adequate, and increasing the fuel price for the first eight months. now we can see the oil price slightly decline but we are not

sure where it is going to go, whether it's going to be down into the 90's or entering winter , when it is becoming very political globally. so is not really sure where it's going to go globally. at this moment, the steps we've taken for adjusting the oil prices i think will -- will be adequate. i think the problem is to maintain the momentum of recovery. so the increase will not be extreme. at the same time we will make sure it is safe and credible and sustainable in the medium-term.

the position we made last week i think is serving us well. we are still subsidizing and still maintaining the recovery of the economy which is also very strong in the second quarter and were coming in as expected in the third quarter. and to same time creating sustainability and credibility because of the subsidy that is already very extreme at this moment. >> you said when we last spoke that if there is a recession, it will be shallow. the energy crisis in europe has deepened. have we miss assessed the depth of the problems in china as well as europe? >> that is counter to my initial

view that it would be really difficult. we will see how high and how fast we will have to go. travel has stumbled on the back of ongoing lockdown and ongoing problems in particular in the real estate sector but the underlying governance remains quite strong. perhaps punctuated by the party congress in october, we will see a return to the kind of growth that could help build the economy out of recession. it's possible that it could be a little worse and also possible that it could be a little bit less bad, let's say. the focus we are bringing to this is to continue to invest in our vision globally and particularly in this region.

even if we have some additional bumps along the road. we will course correct as necessary. broadly i would say the recovery is still on track. shery: standard chartered ceo the winters speaking with bloomberg's haslinda amin. southeast asia's growth outlook, let's bring in our next guest. warning us that the asaean region is no longer immune to outside pressures. it's good to have you with us. tell us a little bit about where you see the biggest vulnerabilities in southeast asia. >> good morning. we continue to remain cautious on markets, including growth

momentum, margin pressure and the stronger u.s. dollar. it may continue, with foreign investor positioning with stocks, commodities, and energy. shery: how closely are you watching volatility in the global market? we do have the f1 see decision soon and i want to ask the question of the week, what is the best trade ahead of the decision and chair powell's fed announcement? >> we continue to look for the 75 basis point rate hike, and the forecast of 75%.

despite the fed hiking rates close to 25 basis point so far. basically investors are managing the shift to tighter monetary policy even as the global financial condition is shifting. singapore and indonesia are there regions with the largest exposure and can benefit in these rate hikes. paul: you mentioned the u.s. dollar there very strong at the moment. this is really starting to have an impact on asian stocks. we have a chart on the bloomberg

terminal that illustrates precisely that. maybe it is time to take a look at buying some of these financial markets. >> we still expect some amount of appreciation. if you look at the dollar performance year to date, is close to 10%. he typically leads to a correction. the market is only down 9%. it clearly shows that markets -- maybe it's because of the other countries.

we are still outperforming in this current environment, [indiscernible] euro, japan, and even china. paul: few countries have impressive growth rates right now but asia is among them. you are underweight malaysia. can you talk us through what is going on there? >> with the rate hikes and tighter financial conditions, basically with the ongoing tightening in the global financial conditions, it affects the picture very much. we do not see downward revisions

so far. taking that into account, it keeps us underweight on malaysia and the philippines relative to other asean countries. shery: take a listen to what the finance minister had to say about tightening. >> interest rates can kill the whole monetary recovery of the economy. that's why the current inflation is going to affect expectation in the market basis. then it is time for the central bank to act. shery: how much of your overweight in indonesia comes from the tightening lag we are seeing, so you don't need to

tightness fast as other economies? >> with the strong fiscal position, right now indonesia also benefits because of its monetary policy. investors do appreciate the stability and in the past, there had been a lot of doubt about the quality in the market but now central bankers are doing their job. we're still doing well because investors believe in the central banks through the global

financial environment. shery: good to have you with us, chief southeast asia strategist at j.p. morgan. as compared to historically what southeast asia has faced in the past, we continue to see central banks across the region really tried to fight the capital slight we are seeing in the region, especially when it comes to those foreign exchanges. thailand seeing the biggest drop in the percentage of gdp followed by malaysia. the numbers and levels are different than the end of 2021. even indonesia seeing the reserves down about $13 billion this year. paul: the tank is starting to

look a little bit on the empty side. the number of months these countries can now continue to finance imports with its reserves has dropped down to seven months, and that's the lowest they've been since the global financial crisis. still to come, australia has passed his first major climate legislation in more than a decade with the pledge to accelerate emission curbs. more on that in just a moment. this is bloomberg. ♪

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workday. for a changing world. paul: australia last week passes first major climate legislation in more than it decade, setting a cap 443% co2 emotions -- emissions by 2030. australia also set a net zero target by 2050. what is next for the government's policy agenda? >> it is great to be with you. of 43% reduction target by 2030, this is an important political milestone for the australian

labor government. at the hard work really now lies ahead of it. it has left australia bereft of policy mechanisms, to reduce emissions from where it is today to where it needs to be by the year 2030. neighbor has indicated what many of the policies would look like in power and in transport and industry to implement. it is clear that momentum is gaining. shery: in the meantime, what are we seeing in the carbon credit market since the victory of? labor? >> this has been driven by a couple of factors. there are the voluntary carbon offset units in australia. in part the company announcement of the announcements -- many are

speculating that it will have to play an important role, in particular safeguarding the policy that covers 215 corporations. it would provide a pathway for these companies to reduce emissions by up to 8% per year between now and 2030. so are likely to see it begin to pick up over the years ahead. leonard there. the yen plunge sparking press speculation. will look at what tools will hit

shery: we have breaking news out of japan, were getting the producer price inflation numbers for the month of august coming in at 9% growth year on year, which is higher than economists had expected, growth of 8.9%, edging up from the previous

month. month-to-month, slightly lower than economists had expected, a little bit of easing from the previous month. the year on year number is pretty surprising, a jump of 9%. perhaps not surprising given the price of electricity continuing to rise. we have the impact of the week again which has touched a fresh 24 year low. we were already weakening in the month of august so the weaker yen having an impact for oil and other imports. year on year growth of 9% for producer prices. we will have trade numbers later this week as well. paul: japan does have more firepower in the foreign exchange reserves that it did the last time. that is important to note should the country need to act on defending the week yen. let's bring in paul jackson.

japan has relatively more firepower in its reserves than it did back in 1998 possible interdiction -- intervention. should the marketplace be watching this or surprised about it? paul: a third thing to note is we are not expecting intervention yet. the warnings have been wrapped up, but we are not expecting it to happen right away, especially since levels have cooled a bit since last week. if they dinner wien, that we need to try to support it and prop it up. there's a key difference between propping up the yen and trying to weaken the yen. to weaken it, you can print money and do it indefinitely. to prop it up, you have to rely on foreign or fixed exchange reserves. it gives you about 2.4 times

daily trade in tokyo of firepower. so if you can match the market for two point five days, it doesn't sound like a lot of power, but it's enough to give perhaps a blood knows to speculators. compared back in 1998, it had only about 1.4 times daily volume in its reserves. it's been about 10% of its foreign exchange reserves in april, 1998 and got about a six-year movement out of the market there, but it wasn't able to turn the tide. this is the key takeaway, if you look back at 1998, what was the key changing factor? it was the u.s. involvement in the joint sessions which cost a lot less and moved the dollar yen thereby ¥10 at that point.

looking at the situation now, is whether u.s. interests are aligned in helping japan. i think the conclusion is they are not. shery: we haven't really seen the appetite for that. given that, where are we headed? i believe the low then was 147.66. are we seeing that insight now? we are pretty close, i think the key events over the coming days that we need to look out for, today the u.s. cti figures coming out, and if they are a lot cooler than expected, that could ease pressure on the yen. if they are more than expected nothing will ramp it up for the yen. then we have the fed next week, if the fed goes with a big move,

the boj stands pat at its rock-bottom interest rate level, that's going to emphasize the contrast in policy and probably put more pressure on the yen again. shery: paul jackson there with an outlook for the japanese yen. we are seeing a little bit of consolidation in the currency, we continue to watch travel stocks as well, reopening stocks got a boost in the previous section on the potential reopening of borders.

>> this is deborah -- daybreak:

asia. hong kong and south korea, investors have a lot to digest already but korea, september 1, 10 days of trading. imports also down 10.9%. >> also waiting on some data out of australia with consumer confidence out. we are setting up for a positive day here. backing up some of the healthy gains on australia. maturating here at the moment. the nikkei unchanged at the moment.

the market awaiting the return here. this would mean a little bit more gain. the nikkei is higher. the japanese has -- japanese yen is rising higher. request let's look at reading in the early going in australia. we will be keeping a close eye

on the energy sector today. the u.s. dollar is helping to push oil prices higher. the aussie dollar, 68.94. kathleen, what are we watching? >> we are watching the cpi. gasoline prices above all here.

that is the good news is going to actually be down at a tent in august. the other side of the coin of course. what you are expecting to see now our services prices continuing to rise. the core cpi if we move onto our next chart here. we can discuss these numbers showing that the core cpi stayed unchanged. 0.3%.

wages are rising 5.2%. we will raise points here. i think the most investors can hope for is that they slowed to a 50 basis point rate hike because they have a long way to go. they will keep it there for a while. >> kathleen hays there, given what kathleen was telling us, our next guest says the coming

months will be -- it is time to take advantage of volatility. good to have you back. they are asking all of our investors but the best rate is. is there any preferred trade for you? >> we could have a bit of growth stocks mopping up. we are likely to have some positive meetings from there. this is the trade that we should start looking at in the u.s. treasury rates. the tenure might still be a little bit too low.

if you are looking at this specifically, let's look at interest rates. >> what are you expecting there? >> that is likely to continue a little bit but overall, it will remain. global investors are very worried about the question coming. they are worried about earnings coming down. given all of the other ones coming out, these unemployment numbers are turning low. it is a long way from here to be flat and positive. that is not going to happen anytime soon.

>> how do you best protect yourself against some of the short-term positivity? you might retest some of those that we saw this year. >> these will always best reps in your portfolio. look at the fx market. that is uncorrelated with the equity markets. the precious metals have fallen lots. all of this in terms of macro economic and geopolitical environment. we are seeing a bit of a short-term boost. the risks remain before you could start getting here.

that is going to perform very well. >> we have inflation in june over the next 24 hours. where do you place the risk of over typing for the fed? >> we will be running more tightening. basically we have been behind the curve until early this year. the fed cannot run the risk of being behind the curve. it is likely to risk staffing a little bit more. rather than pivoting devilishly.

as long as the unemployment number remains as low as it is now, the potential hit to the overall growth for over typing the interest rate is not going to be as painful as it could. so far, the meeting could happen. the data is going to be crucial. >> we have markets trading again in hong kong and china. we have the number of headwinds there. do you see any relatively risk-free options in china? >> risk-free is hard to find his days. the headline risk remains very high.

in the short-term, anything can happen because of the headline risk. that will provide a boost and a catalyst for foundations to increase. >> let's get the vonnie quinn now. >> this is part of a shortselling investigation. the same short-sellers have previously responded. employees in beijing must now

show a negative covid test to return to work after here. officials say chinese universities will start online and the situation is stabling. president biden has signed an executive order to boost domestic manufacturing. the white house has the initiative aims to create jobs, strengthen supply chains and lower prices. while the u.s. has one of the strongest industries, some high-tech productions have migrated abroad. the eu is set to pose a mandatory target. they are rationing energies to help hong kong provide an energy crunch. other measures include struggling consumers.

it will still need to be signed up on. global news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. russia cap grading military events by launching into darkness. the latest on the were next, this is bloomberg. ♪

>> you see this is to carry the manpower.

we are also. they have had power plants and ukraine's advanced to more than 30 settlements of the russian airstrikes. we are washing european futures at the moment. we have seen them jumping for a third consecutive session. the euro also jumped the most. they are getting more hawkish at the ecb. as we continue to see more discussions about how the power consumption in the region provides the clearly to energy markets. >> global demand is under pressure.

that is good for oil. we are seeing a lot of speculation around the iranian nuclear talks. they are stalling. perhaps feeding into it. this backdrop is still very shaky with prospects of recessions and major economies, particularly in europe, reduced by the energy crisis there and china who is struggling to throw off that virus? around the economy. >> we continue to watch what is happening with potentially

curbing power consumption. have we seen any more details of a potential european interference in the market? >> we saw european commission come out but that is the most notable one as they are actually proposing mandatory target to cap power use. this would be a very effective measure. not all member states are on board at this point. other things they are looking at our moves to ease the liquidity crunch. they have put a proposal around there. one thing they have not gone with at this point is a caps on prices of russian gas imports. that is ready for more discussion.

>> russian oil export efforts to get around trade sanctions and blockades having some interesting effect. what is the market for secondhand oil tankers like right now? ? >> we are seeing a surge in demand for these tanks that can travel through and that is reflecting the fact that russian oil will have to travel a lot further with the european bedding imports. there has been pretty strong demand in asia despite the u.s. price cap it is working on. what might happen is they would take oil from the baltic and at some point maybe transferred to another ship which would go to destinations in asia. big demand for those ships at the moment.

there was going to be a need for a lot more. they will be traveling a lot further. >> andrew james following the energy markets. more lockdowns and china. they have locked down the district on covid. we are continuing to watch this but we know they are coming back from a long weekend in beijing. they are already starting to tighten restrictions in the capital. we are seeing this walk down the district on covid infections. coming up next, we will be talking about wall street giants, goldman sachs on the biggest front of the job cuts. we do have details ahead, this is bloomberg. ♪

>> goldman sachs is planning on its biggest round of jobs cuts since the start of the pandemic. bloomberg is looking to illuminate several hundred starting this month. >> many people are saying so. you have to recall that goldman and many have profit windfalls. right now, we have an analyst expecting an approach of more than a 40% drop in earnings this year. goldman sachs planned a slow hiring to reinstate those annual performance reviews. this will foreshadow the job cuts for later this year. this is the resumption of the annual calling cycle. that is where the lowest

performers are typically eliminated and it is a process the bank largely had put on hold during the pandemic. gold has been hurt by the slowdown in banking. the volatility has also been weighing heavily on asset management. while goldman's trading operation had a 32% surge in revenue, this is also showing a sharp drop. its stock has been underperforming this year. that is why many believe that goldman sachs is a bellwether for the industry and this is the end of one euro and all of that. >> tell us about hsbc.

we are talked about the need to stop the costs. >> going in 2023 versus 2022. it is raising the cost of everything. they have to materially step up. this was almost unimaginable a

year or two ago on eye-popping profits. this is the difference that the raises at hsbc are talking about. >> let's get a quick check of the latest business flash headlines. >> elon musk will cancel his agreement to buy the social network. according to the filing, twitter says the latest move is wrongful. the billionaire says the

treatment of the whistleblower gave them another reason to walk away from the deal. more than $1 billion in sales here. wall street banks kick off the second part here. >> here is a look at how equities are trading.

their other market also looking pretty positive. we will discuss the latest with goldman sachs say the markets are still pricing in a 50% chance here. the details ahead. this is b hi, my name's steve. i lost 138 pounds on golo and i kept it off. so with other diets, you just feel like you're muscling your way through it. the reason why i like golo is plain and simple, it was easy. i didn't have to grit my teeth and do a diet. golo's a lifestyle change and you make the change and it stays off. golo's changed my life in so many ways. i sleep better, i eat better. took my shirt off for the first time in 25 years.

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>> some breaking news on the bloomberg for you.

we are showing a modest improvement here. we are up to 82.0. the rba is continuing to tighten as well. some consumer confidence is still pretty weak. >> we will continue to watch the code pandemic. all of this as employees return to work. the chinese capital wanted to contain nuclear flareups.

stephen engle is in hong kong. >> in china, nationwide, they had 949 cases. that is the first time the daily total has been below 1000 and more than a month. authorities are trying to quash any form of outbreak, and the flare of the virus.

there will be trouble over this through the auto festival. they are starting to show negative 48 hours. they are tightening that. authorities don't want to be blamed. let's just. i am not trying to pour cold water on this financial forum on

the first and the second of november but who is going to come from abroad if they have to spend three days in hotel and for that is not being up to do anything that hong kong is good at. restaurants, bars, going out and about. bill winters telling bloomberg live, he is saying regardless of whether there will be a hotel quarantine, it might be done, keep coming. hsbc and standard chartered, two of the big european banks are english bets that have sizable presence here in hong kong. it makes sense them to come.

if they get an exemption to come to skip that quarantine, will they risk that? again, the overarching question is will hong kong lean toward removing hotel quarantines work all? we also have the rugby seven kicking off again for the first time since the pandemic started. there is a lot at stake for hong kong trying to recover. some say it is too late but you have to take one step at a time.

wes goldman has a 50-50 chance of that delisting happening. what are the key factors that could push that either way? >> the obvious proposal will likely begin in hong kong. we have a pretty good sense of these ones that have been identified for noncompliance. if you find an agreement just two weeks ago. finally, we have a free path here.

this is a market-based parameter for what extent the delisting concerns are meeting equity prices. the barometer that we have is pricing in about a 50% chance here.

>> if you go back just a few months time, back in mid-march, barometer was -- the market was pricing and 95% from the delisting that is happening. this market is having a very tough time. we have seen white meaningful moderation in the stable market pricing. potential upside if we have resolution here. >> despite the potential for the

upside, what are your expectations for the many crackdowns we have seen from beijing, tech, education and so forth? what would the applications be for that market? >> i would say we have been pretty exclusive about that. the stories we have been painting is tightening intensity. based on that barometer, we were at the peak level just about 12 months ago. now we are back to more neutralized territory.

the companies can adjust to move forward. >> how much of that clarity do you expect to come from congress? >> if you look at the party statements, since the authorities are putting more on the economy, i think after the event, they will be better policy implementation.

>> good to have you with us. goldman sachs, chief china equity strategist. we have crucial bank policy decisions. a check on printing markets next. this is bloomberg. this is bloomberg. ♪

>> ukraine is seeking more weapons along with continued u.s. support. a senior ukrainian official told bloomberg the armed forces should secure victory over russia. >> we need more auxiliary. we need ammunition. definitely we need more weapons to get there as soon as possible. request king charles iii has vowed to uphold britain's parliamentary democracy, making

a clear indication that he would stay out of politics during his reign. hailing the institution as a living and ready instrument of uk's democracy. >> my lord members of the house of commons, we stand in all of that means dedicated services to her nations and peoples. she sets an example of selfless duty which with god's help and your councils, i am resolved to follow. >> this is the first major failure for jeff bezos's country -- company.

that similar version will take paying customers to the edge of space. japan has approved of pfizer, dern's omicron vaccine. an expert panel advised that -- the prime minister says there are plans to expedite rollout. japan joins the united kingdom, united states and australia in endorsing omicron specific countries. global news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. >> we are also watching nintendo and the japanese trade at the moment.

we are now seeing nintendo shares jumping by the most since december of 2020. up more than 9% in the past five days. the biggest switch debut game with more than 3 million units. let's take japan and other markets that are seeing big currency moves. the central bank said to make policy decisions within a 24 hour window. for more, let's bring in ruth. how that could volatility get? >> pretty bed.

they start seeing these here. it shows the fx rate is incredibly focused on these upcoming events and protection as well according to jp morgan. there is particular concern about solid movement and the bank of japan. plenty of market action coming ahead. >> they have been seeing a sharp drop as they deploy billions of dollars.

this will float at the numbers here. it has dropped to about seven. the exchange is august of 2020. it just shows you the sheer pressure. >> we are seeing the end gain a little bit against the greenback.

still pretty weak against historical standards. what is going on here? is there something else at play? >> the short answer is yes. we could expect to see potentially more jobs growing if the yen continues to weaken. everything has strengthened to the dollar. plenty to watch in the end space. >> be sure to tune into get more in-depth analysis from the daybreak team. plenty more ahead, stay with us.

♪

>> here is a quick check of the latest is present/headlines. star entertainment has been told it is unsuitable after an inquiry found money laundering

control. the new south wales independent casino commission issued a show cause notice and it is now considering defendant -- disciplinary actions. goldman sachs is embarking on the biggest amount of jobs cuts to the start of the pandemic. the cfo says rising inflation could force the bank to significant raise salaries for what he calls brittle cost to keep a lid on cost.

>> we have heard from the largest of the currency exchange, that has been delisting a number of focus tokens as well. these are less risky investment and they arrive at an interest rate environment. jimmie johnson told us more about the firm's current investment strategy.

we think management, things like data become more important. being able to provide platforms, we have centralized investment data. those types of value allowed us to be able to have additional capabilities. they did not do private credit.

>> what we have seen from 2000 until now, there have been public equity companies and there are five times the number of private equity backed companies. companies are waiting much longer to go public, now it is non-10 years. you have to be able to enter the private market space. with respect to credit, you will hear banks say the capital requirements have been raised. we are going to be very careful about how we deploy capital. private credit has gone dramatically. i think from an investment standpoint, it has to be private. >> in our markets, there could be eight-10%. >> i think there is some

question, any kind of private equity strategy based on leverage, it will be challenged. many of them are based on growth. those are not as blind or risky on the interest rates rising. >> is there anything else? >> we are keeping our eye on ramsey held at the moment, falling as much as 15%. that contortion is not in a position to improve the terms of the takeover proposal. bloomberg markets china open is next. this is bloomberg. ♪

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>> it is not :00 a.m. in beijing and hong kong. welcome to bloomberg markets china op