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haidi: you are watching daybreak asia. 's counting out to asia's market open. asian stocks for the decline is a creative central banks follow the fed raising rates. treasury rates surging. the 10 year at levels not seen since 2011. >> japan stages its first intervention, but it may not be enough to overcome policy. japan could ease travel restrictions, joining much of asia, with china the notable exception. >> let's get a quick expectations for the australian economy. this is what we have seen when it comes to tmi numbers. we have seen weakness when it comes to the pmi readings over the past two. we have seen monetary tightening. s&p global australia pmi

composite number, the per luminary number for september, just rising to 50.8 from 50.2. pmi services also seeing a rise. 50.4 from 50.2%. that manufacturing element, 53.9%, just slightly higher than 53.8% in the per luminary september reading. let's get you straight to the markets and how we are setting up for this final friday. >> checking on the aussie, fractionally weaker. it is all down to central-bank action. even though we have traders now perhaps position for a 50 basis point hike for the rba, if we have a relatively dovish guidance, certainly no match for a hawkish fed. the redness -- the relentless rally we have seen in the dollar, forcing countries to go

it alone to shore up their local currencies. the latest big one is japan. we are going to be talking about that any a moment, but still the bank of japan intervening yesterday to buy the currency on behalf of the ministry of finance. it doesn't really stem the weakness of the longer term because of the ongoing -- we have seen between the u.s. and japan. direction of stocks, looking for a slightly weaker start. new zealand stocks already online, looking at the downside. let's look at how bond markets are reacting because we did see a big jump in treasury yields. investors really starting to heed jay powell's call that he is serious about bringing out inflation, particularly reflected in the longer duration bonds as well. the aussie 10 year and kiwi 10 year as well. as a reflection of those recession fears that are likewise building. haidi: as the treasury market has been all over the place when

it comes to those expectations of a hawkish fed, they are being felt across treasury yields. the 10 year yield, the highest since 2011. surpassing 3.7%. the two year rate climbing for the 11th straight session. longest in three decades. u.s. futures up. rebounding .1% for s&p and nasdaq 100. this after we saw three sessions of declines already. crude oil at the moment not doing much. but of course, it is all about the concerns for potential recession and demand outlook out there. especially as we see this raft of central-bank action. bank coming closer. a parade of aggressive central-bank moves continues. one big exception, the bank of japan. let's get to it with kathleen. should we separate the boe? >> it was interesting, more

interesting than expected. everyone expected bank of england to do with 50 basis point rate hike. before we stopped and moved to 50, it was considered hefty. but there was an interesting the vote. you can see 2.25%. moving it up, they've got inflation. if it is up over 9%, their previous forecast moving to 13% this year has been boosted back only 11%. maybe only 50. what is interesting here is that there were five those for 50 but three votes for 75 basis points. one vote for 25. when people look at that, they say, what's going on? what is the policy from boe? exactly like before, but it seems it even has a different meaning. should the economic inflation outlook suggest there are more persistent inflationary pressures, the committee will

respond as necessary. you can say it is at least one third of -- whatever saying they want to 75. and then you think like goldman sachs did, they are going to raise more than a speeding. goldman sachs later in the day boosted its forecast for the next two meetings to 75 basis points. quick they want to talk about the boj. governor --, a key factor, once again insisting they are not going to do anything on policy. they don't need to. inflation is high for the wrong reasons. -- hike he rates this year. boj is the only one and -- digging his heels in. i can't help but think maybe the government is still supporting him, or he wouldn't come to this

meeting to say that. there's a lot of interesting questions raised by what is happening. >> we are seeing a lot of criticism from the public, but perhaps not from the government. our global economics editor and our exclusive conversation with central bank governors philippe -- on shoring up one of asia's worst-performing currencies and the fight against inflation. that is an of our china open show. let's talk a little about japan market intervention. tap the brakes on the currency -- drop. when it did not do was alter the widening golf in -- driving decline. good to have you with us. what a day to be speaking to you. was this inevitable given the plunge in the end? are the bank of japan and minister of finance saw speculative activity.

we know about the -- you've got long-term investors continuing to pick up interest rising in the u.s., borrowing low. over the last week, there was speculative activity and that is what the -- wants to squash today. >> will it? how long can this last? the support brought by intervention when you still have whitening rate differentials. >> two fundamental forces gather from 115 to 145. you point out the widening interest rate differential and you also had the plan current account deficits. two fundamental forces pointing towards a weaker yen. from that perspective, the bank of japan and ministry of finance is fueling liquidity in the markets. as a speculator, i'm going to

take back on those physicians -- 160 still in the cards. >> i just want to drop this chart. through this data to present to you basically ministry of finance data showing what we see is the in prevent -- historically what we have seen interventions to counter yen strength. what else can they do? would this be more impact for? >> you will remember back the last time the yen was at 147, then treasures -- treasury secretary stood in front of the media and said a strong dollar was no longer the interest of america. that's intake shock to the markets and prevented the end

from weakening further. the question have got to ask, is a strong dollar in american interests or not? certainly it is in the sense that it reduces inflationary pressures in the united states because it lowers import prices. at the same time, a strong dollar does reduce profits of american corporations. about 45% of profits from s&p 500 companies come from overseas. when the dollar gets stronger, those revenues, those profits translate into fewer dollars. right now, i think a strong dollar is in america's interest. the ministry of finance sends a signal but at the end of the day, it is not going to prevent the trend. haidi: this comes at a time when we see national interests diverging, every nation for itself, it seems. the disintegration of the global economy as well.

the currency problems are reminiscent of what we saw in the 1980's. is it possible to culminate in something like the -- according? >> interesting you say that. i would make the opposite argument. we have got a flexible exchange rate so companies can run -- countries can run divergent fiscal policy. that is the whole point of having a flex will exchange system. when you look at japan, not have demand. we got an output gap that is still at about 2% to 3%. you find consumption expenditure, even business investment expenditure still below pre-covered trends. no wage growth. from that perspective, governor -- is 100% correct. if the economy is still weak, it's not america. and as a result of that boom, fiscal and monetary policy needs to continue to support. if the yen weakens, so be it. >> great to have you with us.

let's see if free travel loosens things up and gets people back in japan again. executive director at my next. let's get to su keenan. >> u.s. secretary of state antony blinken set to meet friday with the chinese foreign minister on the sidelines of the u.n. general assembly. the meeting comes as the u.s. rallies international support for ukraine following president clinton's military ask -- president putin's the terry escalation. sergey lavrov says china would maintain an objective and just position on the war. south korea's president has been overheard appeared to insult american lawmakers. this after a brief meeting in new york with president biden. in comments on south korean television, he is heard saying to his foreign minister "what an embarrassment for biden if these

idiots refused to -- congress." the president's office says these comments were unofficial and unverified. iranian ctv says 17 people have been killed in protests following the death of a woman in police custody. masha -- died after being arrested by tech ron -- tehran's so-called morality police. it triggered the most widespread unrest in nearly three years. protests have been reported in the capital and dozens of towns and cities. the world health organization says the covid-19 pandemic is not over yet. just days after president biden declared its end in the u.s. the new director general is warning about large vaccination gaps in poor nations and the risk of more dangerous variants still emerging. sunday, biden declared the pandemic over in the u.s. as

debts declined. 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 su keenan. this is bloomberg. >> still ahead, we zoom in on africa's's energy transition. first, the final day of a turbulent trading week. this is bloomberg. ♪

>> our next guest -- jay powell silver lining. christian hoffman, portfolio manager at bloomberg investment management. is this a point where market participants start taking the fed seriously? that the fed put is no longer bad? we keep hearing hawkish this which says to me they are still looking for potential upside on the other side. >> the market is caught in this war with the federal reserve and it has been caught flat-footed twice. there was real hope for a good cpi print. and a nice run-up into that. that was totally the wrong take and had a pretty severe correction.

we think we thought it was going to be a pretty boring meeting. we would get 75 basis points and something along the lines of data dependence. but, powell came out tough and said, stop trying to get ahead of me. we are going to do whatever it takes to channel the inner draghi. that part was certainly scripted, not sure if it worked. basically, stop trying to run the fed. there will be pain if necessary but we will do whatever it takes. >> have you adjusted your portfolio in the wake of the new tone from jay powell? are our fixed income portfolios we are very excited about. we are excited about putting money to work. there's a number of opportunities across asset classes where we are finding misplaced opportunities from short high-quality paper to longer total return, higher duration opportunities.

i think we are seeing that from other real managers across the board. what is happening right now for some of the altos and the fast money, it's a bit like driving a car in a neighborhood you've never been in, you're using the gps and you make a wrong turn and it says recalculating. you make another wrong turn and it says recalculating. most models are not used to these several standard deviation moves we are seeing almost daily. go staff have really pulled back for the marketplace. we are seeing some participants meeting liquidity. we are trying to take advantage of people being caught flat-footed. we're not seeing a real liquidity crisis yet the market work -- the market remains incredibly -- >> the feeling we were getting when markets went -- were trying to get some direction from the fomc. we are clearly lower equities, lower bond at the moment. where is the peak? how do employees get there?

we are talking about the peak from the 10 year yield at 3%, now we are past 2.5%, past 3.6%. >> i think we are in the final innings of peak hawkish this which is going to correlate with peak dollar. doing anything but being along the dollar has been painful and i do not think we are done yet. there's two things will likely happen at the same time. one thing i want to point out, it is very easy for the federal reserve to be tough and act brave right now. it is less impressive when you are brave and it costs you nothing. what i mean by that is right now the job market remains very strong. people are not feeling real pain. at some point come of these moves are going to reverberate in a real economy and people are not only going to be mad about inflation, but the job market and the economy and that is the dilemma. they can't please everyone. they are going to get to the point where they are making

everyone mad. shery: you are thinking peak dollar at some point? when is that? during that time, how much more pain will some developing markets take? are they will continue to take pain. that is unfortunate. we talk to the developing world team, they are finding real opportunities. some of the valuations you are seeing there are at generational lows also and that does turn, it could turn quickly. you can have a very substantial return. these things go through cycles. we are in a harsh cycle right now but at some point it will be flipped and you won't have exposure to them. annabelle: what levels would you be needing to see to be willing to be able to take that risk? >> in every market, there's opportunity. even in the most overvalued markets. equity, fixed income, any tradable market.

one thing broadly thinking about valuations over time, one thing we are excited about is we are seeing the ability to attain real yields in both developed and emerging markets. you look at equity valuations around the world, there definitely pockets of weakness. developed our kids are screaming cheap. there's a lot of missed price assets. i would like to see something along the lines of the real yield average or below average valuations especially if we look at earnings. everyone is laser focused on, rightfully so, as we look for more downside potential. shery: good to have you with us. christian hoffman. you can get a roundup of all of these stories we discussed. today's edition of daybreak is under terminal. also available on mobile. you can customize your settings so you only get the news on the

assets you care about. this is bloomberg. ♪

♪ haidi: softbank slashing valuation of oya hotels by more than 20% as the indian startup prepares for its ipo. more from our technology reported. was this inevitable given the broader market situation? >> exactly. softbank of a last month, reported its worst quarterly loss of more than $20 billion. at the time, softbank had marked down 284 companies in its portfolio. the markdowns included hundreds of companies including the likes of -- and softbank does not

provide a comedy back of any breakdown. a report shows how oyo has been -- [indiscernible] haidi: this bid has been problematic. there has been a lot of unflattering comparisons to the likes of we work. what went wrong? >> it is not just specific to oyo. you mentioned wework. a lot of privately held companies have suffered valuation slides. this is not particularly good for oyo which is actually preparing to go public next year. sources have told us the firm may be targeting a valuation closer to 5 billion u.s. dollars. but, it depends on how the

market performs from here and whether investors are willing to give the company high multiples. haidi: let's get you a quick check of headlines. -- plans to leave the u.s. market following -- considering -- investment bank. credit suisse -- investors for -- the bank is undergoing its second restructuring in less than a year. botts has any report that it is leaving the u.s. market is categorically false. chinese battery makers say they are considering a third factory in europe. the company's first european plant is scheduled to start production in germany this year and recently announced plans for a top -- a factory in hungary. the president says a third plant depends on demand. -- platforms has been sued for skirting apple privacy rules.

the proposed class action law school -- lawsuit filed in san francisco claims the company built a secret workaround to apple's privacy rules -- [indiscernible] >> coming up, we speak to the africa finance corporation about their commitment to clean energy projects. our interview with president samaila zubairu is next. this is bloomberg. ♪

♪ >> in a previous outlook report,

the price increase was around 1.5%. the price for this fiscal year will be higher than the outlook report, but basic structure has not changed. it is almost certain the price increase rate is to fall below 2%. although there may be minor adjustments, changes in basic forward guidance wouldn't happen for another two to three years. haidi: harry hugo speaking about the bank guidance. really no changes in the works. also no rate hikes on the way either. ubs securities among those basically saying we are likely to see no changes even though he does step down in april. still, his influence over policy is quite strong commit even amongst -- it certainly does indicate that exchange weakness really in the yen could continue.

we are still within reach of that peak that we had a few years ago. -- saying this intervention from all that has really done is buy japan sometime. the hope is that dollar strength starts to moderate. let's take a look at other exchanges. the yuan yen around a three decade high. it does highlight to us that perhaps beijing isn't too concerned about losing their competitiveness over to an, even as the yuan is near the strongest. it also does reflect -- we see in relative trade balances. while japan's trade deficit is near zero, china is enjoying an unprecedented surplus. haidi: taking the key pairs, other than just dollar-yen. let's get you over to su keenan. su: goldman sachs doesn't expect

the bake -- bank of england to raise 75 basis points. that is after three policymakers call for an increase of that size. b.o.e. delivered a 50 basis point hike thursday, taking the benchmark rate to 2.25%. global economists predict the rate will hit 4.5%, a from a previous production of 4%. japan will abolish many covid border controls beginning october 11. this in a move to -- the tourism industry. prime minister kishida said tourists would be allowed to enter with waivers and a daily b removed. japan's numbers reached 32 million in 2019 from a fell last year to less than 250,000. david malpass insists he is not

a climate change denier. he publicly is knowledged that fossil fuels are contribute into global warming. calls for his resignation mounting after he dodged questions on the link between fossil fuel and climate change, saying he was not a scientist. he has now told cnn it is clear that burning oil, gas and coal is generating greenhouse gas emissions. 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 su keenan. this is bloomberg. ♪ >> our next guest, africa finance corporation, a multilateral institution created by national governments to find solutions to the continent's infrastructure and challenging operating bierman. joining us is samaila zubairu. good to see you again. long time, no see. i am joking because we were just together this morning.

in that conversation, it was easy because we had a clear distinction in africa about debt financing and real sustainable investments. tell us about what you are seeing on the continent right now, especially that the macro economic conditions globally are more challenging. >> thank you for having me. clearly, we have a lot of -- coming to the continent. [indiscernible] we are at the forefront of deploying capital for development opportunities. and then we invite partners to invest. sometimes -- when we look at the trajectory of the world come the need for -- as a result of the

-- by the russia-ukraine war. we think it is very important that supply chains are closer to markets. africa can play a very strategic role for that. it would be good for reassuring europe and america. to exploit and take advantage of such opportunities, we need more long-term capital. we are investing in that space significantly. we are looking at textiles. we are looking at ports and logistics. when we think of the goods we are going to see committed -- it makes sense for both europe and american investors to have more permanent capital in production facilities in africa. are you talked about de-risking. there is a perception -- >> there is a perception of risk which is why we are seeing african debt traded at these levels.

there is pressure there. what are you seeing across the continent? given that bond costs are rising? >> i would like to take a step back and ask why african economies are always going into boom-bust cycles? the reason is there is no value addition taking place on the continent. if you have value capture, you have more resilient economies and create more jobs. you have better -- power. your contribution to global trade is higher. you have capacity for regional trade. you have -- market. one of the largest markets going forward. you have a lot of goods to trade within the region. you have better value. -- rest of the world. this is also very important if we are serious about achieving net zero. good way we currently operate whereby we have manufacturing

centered in southern areas of the globe is not going to work going forward. to achieve net zero, we have to change things for one of the things we need to changes to have local production. [indiscernible] you have a lot of that in africa. i think going forward, it is important that we get the kind of investments that would build production facilities in africa. it would also have to create jobs that we need in africa. that will reduce the debt stress. typically what happens is when commodity cycles are good, we have a lot of income coming. but anytime there is volatility, we have reduction of income. that leads to debt, that leads to devaluation.

the way to change that is to have more local production, more value capture. >> who do you see filling the gap left by china? is it possible to find a replacement? >> we have always invested -- i think the point i was making is that we are seeing decoupling. it makes sense for the european manufacturers and american investors to partner with us to look at how we can help them produce batteries. if you look at car demand today, it's about -- that is going to go to about 100 million vehicles. run out is less than 10 million come expected to grow to 30 million. that is a big market in africa has the resources. if we have a partnership with

the car manufacturers in europe and america, we can produce -- production. we can produce the -- and the vehicles. but we have to get more value capture in the production of battery process. shery: do you have more details for us? that was announced in april, what can you tell us? >> i work with one of your arms. bloomberg -- that he that prude you could produce batteries -- battery precursors in africa cheaper than in the u.s. or china. maybe because of the advantage of raw materials. the cost of land and cost of labor. that would be a significant opportunity for american and european investors to partner with the likes of us and our partners to produce battery

precursors. >> what measures are put in place right now? >> we have -- in certain places. we are building special economic zones and industrial park that is going to focus on that. we just signed something to one of our companies. we are going to do some production in that place. >> samaila zubairu, ceo of the africa finance corporation. coming up, asia booming, opening its doors. talk of removing hotel quarantines and mass mandates. details next. this is bloomberg. ♪

♪ haidi: motivation back taiwan, south korea all relaxing. china remains a holdout. for more, let's bring in stephen engle. run us through some of the changes. stephen this is the big wave that many people here in the asia-pacific had been waiting for. while the rest of the world pretty much opens up. the united states and europe as well as regional competitors singapore, which opened in march.

look at this the one tsunami, if you will. japan is going to end its border controls pretty much across the board as of october 11. the prime minister speaking to the new york stock exchange pretty much said they are going to open up to be on par with the restrictions, or lack there of come in the united states. japan would like to capitalize on the extremely weak yen that touched 145 before that intervention. that weak yen could potentially attract foreign tourists to come and take advantage. that is a similar situation, except for hong kong which has a dollar peg. taiwan currency weekend. south korean you want has weakened. these economies, somewhat later than singapore, opening up could

they simply want to take advantage of ariz seating -- -- stephen: taiwan is going to analyze data for a week before ending its three day quarantine but it looks like it is happening. >> what about hong kong? >> we are waiting for an official announcement. all indications have been the government is days away from making that announcement from going from three days quarantine to four days self-monitoring come to zero days hotel quarantine and seven days monitoring. potentially moving that to three days self-monitoring. hong kong has this big bankers summit coming up in november. followed immediately by the rugby sevens. any kind of hotel quarantine would be a hindrance to the success of those two gatherings. we are just waiting. it could happen today, could

happen next week. it will likely happen swiftly, the implementation. they are making sure they have their ducks in a row before they absolutely open. this is a long time coming. especially after singapore has been having its own bankers summit and has been essentially laser focused on competing directly for the high net worth individuals from hong kong. hong kong sees the writing on the wall. john lee, chief executive, perhaps winning out on that internal debate with health officials who would like to see a more conservative approach. it looks as though the pragmatists have won. >> stephen engle. we will have more on hong kong reopening and recovery with michael tn. he joins us live in the next hour. in pakistan, the prime minister says more funds are needed for recovery following catastrophic flooding that left over 1000

debt. here's much about sharif -- shabbat sharif. >> we -- room to have debt obligations -- month after [indiscernible] we have spoken to european leaders and other leaders to get us more -- unless we get substantial --, how can the world expect from us to stand on our own two feet? it is impossible. possible. the world has to stand by us for -- us. -- lightning speed. otherwise time and tide wait for none. >> how comfortable are you with

your foreign commitments to china? 30% of your external debt? >> i think yes, paris club needs to give us more. once that is done, we will most definitely request summer chinese friends. we have spoken to world bank. to arrange programs for immediate relief for these millions of people. it is very important. please tell me, how do you expect from us, after we have just signed our agreement from a very tough conditionality, that means every month we have to back petroleum, tax electricity, and yet rehabilitate millions of people who are sheltered? rebuilder houses and send them

back to work. in agriculture and industry. how can that happen? shery: what do you think of buying oil from russia? >> we spoke to put about the availability -- putin about the availability of gas and he promised me they would look into this. there is no such commitment as of yet, but we are also looking to buy creek. there was a shortage of wheat last year, and this year the land is not going to be ready. so, we will have to import additional tweet -- tweet -- and is going to cost fortunes and add on for -- all of this particular is a nightmare. shery: print minister zarif.

japan intervenes on the end for the first time since 1998. we will be asking whether that is a losing battle as long as the doj seeks easing policy. this is bloomberg. ♪

♪ haidi: a quick check of headlines. boeing has agreed to pay $200 million to several allegations

it failed to disclose safety issues which -- with its 737. it concludes a pro but whether the software system linked to the 2018 2019 crashes. boeing and his former ceo do not agree to or deny the findings. airbus jets worth $4.8 billion to a china airline union. it will now buy for delivery between 2024 and 2027. the agreement is a -- $37 billion deal for the same jets from four chinese airlines in july. shery: japan has intervened to prop up the yen for the first time since 1998. let's bring in en masse. the yen is praying -- the yen is paying the price. governor cordova has become

compassion increasingly isolated. tell us about the macroeconomic picture in japan. >> sometimes he sounds like a guy who just can't handle good news. a long-standing goal of japanese monetary policy has been to get -- above 2%. japanese economy is in a good place relative to some of its peers, but kuroda is stressing there is no walking away from the alternate easing monetary policy. relative to the great policy is being tightened rapidly, not just patent, but rapidly commit this is a recipe for prolonged and protracted yen weakness. that is the fundamental driver. japan can have a few tactical victories on the market for sure, like yesterday. but if you are looking for a

sustained rally without a shift in the boj, forget it. >> nobody expected a loosening of the boj's grip on the policy they have been so adamant to adhere to. do you think there is leeway in the weeks and months ahead? how much pressure comes from the currency problems? >> there are things they can do short of ending the negative rate policy. let's look at forward guidance, which feels like it got trapped sort of a stage. the forward guidance says interest rates can still go lower. corona appears to bury this. in the middle of a speech at columbia university when visiting the u.s., he said of course japan's economy does need

further easing. yet, they have kept that language in the official boj communique. while guidance from the fed and everyone else is about the pace of hikes, japan said well, we -- but i don't think anyone takes that seriously. you could just remove or tweak that language, then people would see there's movement at the station. that would help in the end. -- that would help the yen. >> dan moss with the latest. some stocks we are watching today ahead of the market opening in sydney, asian semiconductor shares lower as investors continue to digest recent hawkish moves from the fed. we are watching samsung and -- trading down the previous session. haidi: coming out, anticipation mounting that hong kong will scrap its hotel quarantine

rules. speaking to the national people's congress deputy michael tn -- michael 10 -- it could be another volatile session when it comes to asian trading. u.s. stocks falling for three-story sessions. -- three straight sessions as markets try to interpret forward expectations from the fed. surge in global bond yields. prospect of a sixth weekly decrying -- decline in asian equities. sovereigns, treasuries, investment grade high-yield sitting on multiyear highs. more to come. this is bloomberg. ♪

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>> this is "daybreak: asia."

karen australia, coming online. japan, away on holiday. we are watching the first fx intervention by the finance ministry since 1990. -- 1998. >> we've been talking about how this is a band-aid for a major fundamental diversion from policy and outlook problem. we are watching downside pressure across a plethora of asian fx and bond rallies. bearishness has returned to global bonds. all of these factors, playing into what's going to be an interesting friday session. what are you watching? >> we've got the open right now for korea, australia, treasure is coming online. we've seen the gravitation towards the long end of the curve. the 10 year yield jumping 18

basis points. japan is shut today for public holiday. we are still watching the yen trading here. fairly steady. a move towards 155, 160 could still be on the cards. we are also watching the korean one, still in focus. some other try to -- some other strategists say 500 could be the case if we see a recession towards the end of this year or next year. some of the largest companies inside korea also saying they are going to be struggling to reduce the amount, as policy markers attempt to map a way out of this currency crisis. in terms of the direction of stocks, we are continuing to see declines for the index.

futures, looking a little bit more muted. australia is trading, back online post public holiday. looking a little bit muted, as well. we are keep an eye on the aussie dollar. fairly range bound this morning. but still some strategists, saying it will struggle ahead of the rba decision, the next meeting, on october 4. even if traders etched toward a 50 basis point hike, we could see the best guidance. . known naturally for the fed. in terms of what else we are watching, oil markets also coming online. brent crude looking a little flat as well. oil traders, focusing on the micro and economic indicators in the markets. we see these risks of recession. we are of course not for a sixth straight week of losses. the longest streak in seven years. >> let's bring in mark cranfield

and our policy editor, kathleen hayes. let me start with you, mark. not only do we have indonesia moving across asia, the boj move in the fx market, but other central banks starting to tighten. would you expect to see in the markets today -- what do you expect to see in the markets today? >> traders will be very wary, taking on the dollar/yen as they have been earlier in the week. next week is illustrating week of the quarter. so the japanese intervention is pretty harsh. they've had to reassess their positioning. -- you've had traders really battered yesterday. they've had to reassess their

whole outlook on dollar young positioning. it's been a relatively straightforward trade for a number of people. you can imagine the positioning was pretty large as dollar yen was approaching 146. when they got hit by the intervention, that would've been a big setback. first managers will be all over this. they are coming towards the end of the quarter. they want them to see the situation get any worse -- they don't want them to see the situation get any worse. the timing is excellent, from the part of the japanese authorities. they could have not chosen a hardly better time to do it. monday morning is always a great time for intervention. because you really upset traders when you do that. that is hanging over the market. [laughter] first, the turmoil created throughout the other asset classes as well. we do expect some more japanese intervention before the end of the month. >> it is such a fascinating time at the moment when you take a look at global central banks.

wj contrasted against the fed and the doe -- the boe, many think they could've gone bigger. >> absolutely, three out of eight or nine board members thought they should. we will get to that in a minute. let's look at how this unfolded for the past 24 hours. it encapsulates the immediate picture that's been developing for a while. the fed meets, they do 75 basis points. that's not a surprise. what is surprising to many people, even people expecting an aggressive fed is how aggressive the dot plot is. the funds rate is going to be much higher next year if the fed has its way than people had been expecting. that's the backdrop. they will go into this meeting and talk about policy. at the press conference probably gets lots of questions about the rate. he knows the dovish policy, the positioning of not removing

stimulus because inflation is not quite high enough, while the rest of the world is removing stimulus, fighting inflation, would be an issue. his comments at this press conference that absolutely nothing to push back against yen weakness. he said appropriately, a lot of the story here is an yen weakness -- is not yen weakness, it is central banks tightening around the world. the finance ministry was coming in and intervention started. that is where the doj is -- the boj is. still there. the bank of england comes in and is a 50 basis point rate hike as expected. looks like a split vote almost toward 75. goldman sachs later in the day raises its forecast for bank of england. rate hikes. the next two meetings, to 75 basis points. this is something happening all over the world, except japan, and china, but that's another one, a different boat. but everybody else is looking at inflation or a weakening currency, if you are in an emerging market nation.

sometimes raising rates more than expected. >> when it comes to intervention, it works somewhat to flush out the speculative bets. but we are looking like we are needing to change the underlying fundamental forces and it's just not happening. >> as kathleen was saying, the bank of japan made it pretty clear during yesterday's press conference, they are in no hurry to change anything. talking about a two to three year time horizon. they don't see the need for a change in japan. of course he won't be around himself. he would've retired before them. but it shows you they sound very committed to their policy, with no indication they were willing to change. i think it's the right thing for the japanese economy. keeping the negative short-term rates and the yield curve is controlled. from a fundamental point of view, there is too much working in the yen's favor. in terms of the yield differential, it's going to

stay, it might even get worse, it might favor the u.s. dollar even more in the months ahead, as the fed takes interest rates above 4%. all of that certainly suggests that you have reasons to continue to see yen weakness. but everybody knows, in the end, for next change markets have a lot to do with pnl effects, momentum, and what traders cs the next five minutes, not the next three months. [laughter] there was a lot of pain yesterday. the pain has not gone away yet. >> yeah. we are still not done, great? what are we expecting from global central bank now that the race higher has started? >> let's look at the moves we had this week. it's pretty remarkable. first of all the number of banks that have had their policy meetings converged. what we have seen them do. we are starting here with the g10 nations. we know the 75 for the fed,

bank of england, 50. it is a special club when you get the 100 basis point move in. the swiss bank, no longer with a negative rate. the boj, the only one left like that in the world. moving on to asia-pacific, there were some very dramatic moves this week. taiwan, 12.5 basis points, they've got an inflation problem brewing. indonesia, 50, twice as much is expected. vietnam, 100 basis points, because the currency is so weak. looking at other emerging markets, brazil holding steady. turkiye, with a cut. more central bank meetings next week. more potential for surprises. it remains to be seen where the point is, where everybody says they've done enough. a part of it is when the federal reserve gets to the point where

it's done enough. i think they made it pretty clear to us they may get to 4.6%. they've got another 100 basis points go over the next few months. it will be interesting to see how that reverberates through the rest of the world. how we really see -- have we seen all we are going to see no? for right now, like mark said, foreign exchange traders' window is about five minutes. [laughter] if you are in that part of the world, my heart goes out to you -- it's a tough job. more tough than ever right now i think. >> kathleen hayes and mark cranfield with the latest on all of the top central bank action. in the market implications. coming up later, a conversation with felipe medalla on shoring up one of asia's worst performing currencies on the fight against inflation in our china open show at the times on your screen. for now let's get to sue keenan with the first word headline. >> pakistan's prime minister is making an urgent appeal for debt relief as the nation grapples

with catastrophic floods, which have displaced millions of people. he says pakistan has debt obligations the next two months. he also told bloomberg his government has just signed an agreement with the imf with "very tough conditionalities" that include taxes on petroleum and electricity. u.s. secretary of state antony blinken is set to meet friday with chinese foreign minister wong yi on the sidelines of the general assembly. the meeting comes with the u.s. rallying international support for ukraine, following president putin's military escalation. he earlier met with his russian counterpart, sergey lavrov, and such china would maintain an objective and just position on the war. south korea's president has been overheard appearing to insult american lawmakers. this, after a brief meeting in new york with president biden. in comments broadcast on south

korean television, he is heard saying to his foreign minister, "what an embarrassment for biden, if these idiots refused to grant that in congress." the president's office has said his comments were unofficial and unverified. iranian state tv has at least -- says at least 17 people have been killed in protests following the death of a woman in police custody. maasa tehran's so-called morality police. it has triggered the most widespread unrest in nearly three years. protests have been reported in the capital and dozens of towns and cities. 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 sue keenan. this is bloomberg. ♪ >> let's take a look at some of the early movers in the session. what are you watching, belle? >> let's take a look at chip

stock staring at the start of trade. and big moves in the u.s. session overnight. this is day two reaction to the fed meeting. with all the stocks down nearly 3%. the index at its lowest since november, 2020. stocks, being hit by both sides. you've got rising yields weighing on tech and at the same time you've got rate hikes also slowing chip demand. at the start of trade for the stocks in korea, it's looking a little bit mixed. japan, czech republic on holiday. we are watching the travel sector. we did see big moves and travel names in the u.s. overnight. this is down to recession fears. fears the fed could put the economy into contraction. airline stocks are in their lowest since august of 2023, reflected in some of the biggest names in korea, australia, new zealand as well this morning. the strong travel season we saw in the northern hemisphere, soaring airfare as well, not

enough to sort of calm the investor fears we had around the future of business travel. high oil prices and rising geopolitical unrest. and the overall threat of recession. just some of the things we are watching. >> still ahead -- we check risks to global energy markets with amrita sen. russia may continue to try to a -- try to ratchet up economic pressures on the west. and we will talk about the economic recovery of hong kong with michael tien. this is bloomberg. ♪

>> much of asia is seeing a rollback of covid restrictions. in japan, reviving visa free travel and removing the cap on daily arrivals. taiwan may ease quarantine requirements for arrivals. and south korea lifts mask rules for monday. hotel quarantine will be scrapped entirely for inbound travelers. let's bring in our chief north asia correspondent, stephen engel, and hong kong -- in hong kong. a lot of our viewers have been invested interest in how this happens. >> we want to get to our hong

kong deputy -- the national people's congress in beijing. more prominent locally, the hong kong legislative council member as well as the founder of the g2 thousand clothing chain -- g2000 lujan chain -- clothing chain. the cheapest ticket of have the -- the chief executive has not announced he is planning to scrap the hotel quarantine for arrivals. but is this a certainty? >> they will scrap the policy to make it -- the two administered of hurdles are trying to overcome is if they also scrap the pcr tests. that means more tourists and visitors, travelers will hcome to -- will coe to --

that means more tourists and visitors and travelers will come to hong kong. currently, we have quarantine hotels. many of them. can they be turned into isolation hotels for those who test positive? it is something they are now looking at. of course, they lack capacity at the airport. that is also important. because what they do is do a rapid test or a pcr tests for all the arrivals. then if you are tested negative, under the rapid test, you are allowed to leave the airport, but then they have to provide the pcr test result within 2-3 hours, otherwise a holding for support, because it becomes -- the holding falls apart, because it becomes 24 hours later, if they test positive, they are already in the community. so they have to crank up capacity. currently the two things that are remaining are the isolation

hotel capacity and the capacity at the airport for a short turnaround. >> right. >> i expect that they can announce it as early as next week to be effective by the middle of october. >> tell me more about the logistics at the airport. right now, you do take a pcr tests, you can go to your hotel and wait for the resultss. also they made the change where if you are infected, you can stay at the hotel. with hotel quarantine out of the equation, you have to weigh those 2-3 hours for the pcr tests result. if you are positive, do you go to the pennies bay or do you get isolated in a government facility? walk us through that. >> if tourists come to hong kong and they get a pcr test be

positive, and they get sent to pennies bay, i don't think other tourists will go to hong kong. there should be in isolation hotel to take the place of penny bay. that is what they are working on. currently, there's a pcr tests requirement. they will scrap that. that means the people landing in hong kong being positive may increase from the previous level. so what they will do is keep the current regime, which is upon arrival, you take a rapid test and a pcr. if the rapid test is negative, they let you go. then you go to the hotel of your own choice. because there no more quarantine hotel. then about the time you check into the hotel, your pcr will arrive and will let you know whether you are safe and you can stay there for the next seven days, you can go anywhere you want, with a mask on, and all that, or you have to move to an isolation hotel. so we want to shorten that time

to almost right after you check into the hotel of your choice. then you got your pcr result -- get your pcr result. >> are there going to be different rules for tourists as opposed to locals with the leave home safe app and the different color codes? also allowing visitors to go to restaurants, go to bars. if you want to have bankers come to hong kong for the banking summit in early november, you won't be able to fly in for the rugby 7's, and they cannot go to restaurants and cannot go to bars for seven days of self-monitoring, what is the purpose? >> yes, but question, for local hong kongers, they stay home, to finish their quarantine, if they test positive. for tourists and business travelers, international ones, they will have to go to an isolation hotel. you are absolutely right. zero plus seven is not

0.0. -- is not zero plus zero. when you go out, you cannot dine in public restaurants, until you have tested several times and you are all clear. that, i think, is a hurdle, for tourists, for international commercial travelers. you can have private arranged dinners, working dinners in a private setting. that we can resolve. because at least you are out in the open. you can work immediately upon arrival. but you are right. i've been trying to change that seven to maybe two to three days. in other words, upon arrival, they take the test, then they take a test may be two days later. once they are both negative, they should be allowed to go out and eat and dine and enjoy what hong kong is famous for.

the cuisine. >> is not going to happen before the banking summit, down to three days? you in conversations with john lee. you are also i'm sure in conversations with beijing to get their blessing. could that happen? if they implement these new rules, as of the first week of october, could we by november 1 get a relaxation of zero plus seven, down to zero plus three? >> it depends on the numbers. government is looking at numbers every week. it depends on the numbers of people testing positive. after they -- ok -- so the number of people that tested negative upon arrival and subsequently positive, that is the key. if that number is fairly low, then they can test everyone upon arrival. alright, then you go to an

isolation hotel, and that cannot be changed. but once you test negative, then you stay in your hotel, if you test another time, it is still negative, if those numbers remain optimistic, then i think the next step will be cutting it down to zero plus three. but honestly, before november, i don't know, i doubt it, because you need time, to get the statistics. but i still think that for commercial travelers, they can meet with their people in private settings, in offices. they can have working dinners, working meals. i think that is doable. but for tourists, i'm not sure. >> michael, what was the main catalyst for this change? was of the competition from singapore? are the regional centers relaxing? -- other regional centers relaxing? or simply the pragmatists

beats the health experts who wanted a more cautious approach? or was it the hotel operators? they were sick and tired of this hotel quarantine situation and their reputations being damaged. what was the main reason? >> the reasons are many. the top of the list is our total number of cases are not rising, but dropping. if the numbers were still rapidly rising today, all of this is up. we are building this momentum upon the total number of cases dropping. and that the vaccination rate is going up every. -- going up every day. plus other factors. >> michael tien, thank you so much for your time and your insights on the change is likely coming to hong kong very shortly. we will take a quick break. more, after the break, on "bloomberg: daybreak asia."

♪ >> this is "daybreak asia." 30 minutes into the trading session for korea and australia. japan of course shut for a public holiday. we are continuing to watch what we see in the yen this morning, looking fairly subdued following intervention for the first time in a couple of decades here. still downwards. perhaps traders could be a little bit weary of some fall off intervention on monday that has been a playbook in the past. they could be dusting it off as well in the coming week. risk assets, just recovering slightly. in the korean won, picking up a little bit. in the direction of markets this morning, equities are looking fairly subdued, a little bit range bound. we can see a little bit of a catch-up trade happening in australia. shut in the previous session for public holiday as well. overall recession fears

is still the name of the game. that is what investors are really focused on this day two reaction to the fed on wednesday. >> natural gas fluctuated, as traders assess risk of the little supply coming from russia might be under threat. let's bring in amrita s. what are your expectations for the energy markets towards the end of the year? j.p. morgan, saying, largely, this will be on the structural shifts as a result of sanctions and shortages. >> yes, i mean, this is going to be a very, very volatile last quarter. we have already seen natural gas prices being super volatile. crude oil, this is the second highest euro volatility since 1990. only 2020 was more volatile than

this and marginally higher. it's just too many different and contradictory factors driving price is right no. on the financial side, you've got your recessionary fears. china, still in lockdowns. things not looking particularly promising there. there are no prospects of iran returning. barrels will start struggling when the embargo kicks in. although it doesn't have a lot of spare capacity. and hope at least is that after the 16th of october, there are some green chutes of demand in china. we have been calling for $100 plus price forecasts, year-end is about $120. we really don't see how we are not going to have a very volatile foreclosure -- volatile

fourth quarter. >> that hinges on what you mentioned about the kicking in of the sanctions in december. how does that redirection of flow work? can china or india absorb all that capacity? >> in theory, yes. india has been -- it is about a million barrels per day given the refinery constraints. they have been doing similar numbers in the past. china just imported about 2 million barrels per day from russia. up from about the usual number of about 1.2 to 1.3 million. both of them have really increased purchase is a lot. could they absorb the barrels coming out of europe a day? in theory, i would say yes, but there are considerations here, banks in particular are very, very wary of secondary sanctions by the u.s. i think that is what is going to cap russia's ability to sell

crude and particularly products when the products embargo happens in february. we are expecting a lot more russian oil floating to asia. relabeling and finding homes. but it does mean you are going to tie up an awful amount of oil on ships. freight rates are going to go up. but it also means you're going to get a lot of volatility in russian exports. want to have exported to asia, you need to be able to transfer those to other ships before ships go back to russia and refill again. >> amrita, what is your outlook right now in terms of the european energy crisis? will we see shortages last for more than one winter? >> yes, this is not a one winter story, let's make it very clear. even before this crisis, fundamentally, we have been talking about high energy prices. we have been counter consensus. banks have caught on to what we

have been saying for years now. we just have not killed off demand anywhere close to what needs to happen, given the lack of investment and the declines in supply. particularly for oil. now more so for gas as well. europe has a little bit of a buffer going into the winter. that's not going to be enough, if the winter is cold in particular. and we continue to need to rush and demand to be able to balance this market. not just for this winter and next, potentially the one after as well. >> in terms of the g7 oil price cap then, how effective do you expect this to be? what other measures could we see? >> see, the price cap on its own is not going to work, if it's just the g7. ultimately, india, china, and tur -- and turkiye need to agree to it.

it really depends on the price. if the u.s. comes out and says, we are going to set the oil price of $44, there is no way russia is going to sell. however if the price is $70 or $75, that might be an incentive for all parties to agree to this, because right now russia is selling oil to russia and china pretty much at that level. the interesting thing here is -- do these price caps come with threat of potentially secondary sanctions? we don't think secondary sanctions are on the table. some senators are proposing it. if there are threats of that, at least for the next couple of months, buyers might be cautious, then they might revert back to buying russian oil anyway. the price cap on its own does not make a difference if it is just the g7. >> amrita, if we have perhaps underestimated the extent of the crisis, the european energy crisis going into next year, potentially even for another winter, i want to get your view

on this question -- how you see the ongoing energy crisis having an impact on green investment, and the transition to green energy sources. >> a fascinating question. honestly right now, europe is very divided. there are some countries that are saying, we are here because of fossil fuels, reliance on russia. we must diversify as soon as possible then quickly as possible. whereas other countries, particularly in eastern europe, are saying while this is about survival, therefore it doesn't matter what form of energy, be it coal, we are going to move back to it. i do think of the winter gets tough, the argument that the wind is survivable over green energy, in the meantime, yes, you will see a push towards clean energy, but let me make one thing clear, today's energy crisis is not necessarily because of russia. sure, it's been exaggerated

because of russia and weaponization of gas. but we are here because of western policy which has simply focus on energy transition, not energy security, and it's killed off demand as much as its cult of supplies. there's a bigger acceptance and norway that we need all forms of energy, as long as we do carbonized hydrocarbons. that's the right way to go about this. unless economic growth stops, we will get energy demand continue and we are not investing enough. that's going to be a problem. >> great insights, amrita singh. let's get to sue keenan with the first word headlines. >> will start with japan,which will abolish many border controls beginning on november 11 in order to revive the tourism industry. the prime minister said individual visitors will be allowed to enter with visa waivers reinstated and a daily

cap on arrivals removed. japan's visitor numbers reached a record of almost 32 million bike in 2019, then fell last year to less than 250,000. >> from october 11th, japan will relax border control measures to be on par with the u.s. we will resume visa free travel. and individual travel. >> goldman sachs meanwhile says it expects the bank of england to raise its key rates by 75 basis points in november and december. that is after three estimators called for an increase of that size in a split decision boat. the boe delivered a 50 basis point hike thursday, taking the benchmark rate to 2.75%. they predict the rate will hit

4.5%, up from a previous production of 4%. the nasdaq is said to be stepping up scrutiny of small-cap ipo's, after a series of outsized gains by new listings quickly evaporated. our sources say the exchange is looking more closely at prospective small-cap issues, with some companies putting ipo plans on hold as a result. most of the recent spate has featured issuers based in china and hong kong. the world health organization says the covid-19 pandemic is not over yet. just days after president biden declared its end in the u.s. the director general is a warning about large vaccination gaps in poor nations and the risk of more dangerous variants still emerging. biden declared the pandemic over in the u.s., as cases and deaths decline. 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 sue keenan. this is bloomberg. ♪ >> pakistan's prime minister says more funds are needed for recovery following the catastrophic flooding that left over 1000 people dead. here are the concerns on why the country may default on its debt. >> we are going to have debt obligations next month and the month after. >> are you going to be able to make them? >> we have spoken to the urban leaders and other leaders to help us. to get us more relief. unless we get substantial relief, how can the world expect from us more? it is simply impossible. next to impossible. the world has to stand by us. there's a gap between our ask

and what is available. very quickly, at lightning speed. >> how comfortable are you, with your foreign commitments to china, for example? the 30% of your external debt? >> i think, yes, the paris club needs to give us more -- once that is done, we will most definitely request from our chinese friends. we have spoken to the world bank, to arrange programs for immediate relief for these millions of people. it is very important. how on earth do you expect from us, we have just signed the imf agreement, with very tough conditionality's and means,

everyone, we have to tax petroleum,, tax electricity. and rehabilitate millions of people who are shelterless. rebuild their houses. send them back to work, in agriculture and industry. and start producing. how can that happen? >> what do you think about buying oil from russia? >> well, i have spoken to russian president putin about the availability of gas. and he has promised me that it will most definitely look into this. there is no commitment as of yet. but we are also talking with them to buy wheat. because there was a shortage of wheat last year. and this year, the land is not going to be ready. so we have to import additional wheat, which is going to cost a fortune. and further add to our

foreign-exchange's very scarce resources. all this put together is a nightmare. >> pakistan's prime minister, speaking earlier with sherry. plenty more to come here on "daybreak asia." this is bloomberg. ♪

>> let's bring in our david f.

for a look at the markets. we are still passing the yen intervention. with public holiday, we are looking like pretty subdued trading action. what happens on monday? how long does this last for? to the follow-up with another round? >> i think certainly, when it comes to the yen intervention, it looks like a line has been drawn in the sand at 146. you have to think, if it approaches that level moving forward, if, it depends on u.s. yields, which are rising, then china is being wary of further intervention. they have to get near that level before they can. you don't want to use up too many bullets, if you are the ministry of finance. hopefully tomorrow, if the intervention worked, everybody believes that it will not last long term, unless the treasury gets involved, then the dollar

yen will keep going higher. treasuries are indicating, if you go back to july, the only rare exceptional circumstances were to get involved, it doesn't seem to warrant that at the moment. the treasury might like a higher dollar because it helps tame u.s. inflation. all around at the moment, further risks of boj, intervention seeming possible if the dollar yen pushes higher. >> it seems to be like every nation is going at it for itself. from chile, to india, we have really seen them dive into their dollar stockpiles. are we expecting any future coordination? or is it just every country doing its own thing? how much would that help? >> the rbi intervened, there

was a intervention from the bank of korea. unless it is coordinated, it is very tough. you need most g7 and the dollar. if the dollar does not get involved, if the other major central bikes get involved, it is not the same if the dollar is not in there. the treasury has indicated at the moment it is not warranted. the dollar is rallying on fundamentals. there's nothing wrong with where it's at. it is about where it should be. so you may see some coordinated measure. but without the treasury -- the u.s. treasury involved, it is hard to say how much long term impact it could have. >> after the japanese government stepped into defendant yen plan, the people see plans and intervention of its own to stop a slide in the currency. this is bloomberg.

♪

>> as the japanese government intervenes, the chinese currency remains on a seemingly unstoppable path towards 720. let's bring in bloomberg's chief china markets

correspondent. it's fascinating how different countries are choosing to deal or not react to the moves in the currencies. >> yes. it is also fascinating to see the official narrative from china around the you on. -- the yuan. the newspaper this morning, saying the yuan is trading within a reasonable range against the dollar, it is quite strong against other currencies, which is of course true. but really, a focus on the dollar-yuan ahead of october 16th. it may lead to intervention by the pb oc, saays the commonwealth bank of australia. intervention is a really tricky thing, not just for any government, for any central bank, but especially in china. given their experience in 2015, when they intervened to weaken the yuan there, and that was so badly communicated, it's been labeled a botched intervention

by international commentators. so they want to avoid anything like that. but the pboc could take more measures -- stronger measures to at least avoid market dislocation and prevent disorderly collapse in the yuan, which we are not seeing quite yet. the market looks stable for now. >> let's talk a little about the stock market in china, we continue to see multiyear lows, what is the outlook from here? >> it's a difficult thing, to convince people to buy chinese stocks, either onshore or offshore, when sentiment is so low. offshore of course is also being impacted by what is happening in the u.s. markets. the golden dragon index, not so golden of course. hong kong, really suffering from that liquidity squeeze, as well. i'm sure is performing -- onshore is performing a bit better. the outlook is not so bright. we are at multiyear lows not just in china but in every other

market in the world except for india. what analysts are saying is, if you want to at least hedge against volatility i'm -- against volatility than buying onshore stocks is your best bet. >> some of the stocks we are watching ahead of the markets opening in hong kong and china, asian semi conductor shares could be tracking lower as investors continue to digest hawkish moves from the fed. we have treasury yields, multiyear highs as well, we are watching tsmc and foxconn among others, heidi. >> let's get a quick check of the latest business/headlines. boeing has agreed to pay 200 million dollars to settle sec allegations after failing to disclose safety issues with the 737 max liner. linked to the 2018 and 2019 crashes. the boeing ceo have not admitted or denied the findings. airbus has won a deal to supply

$4.8 billion to a southern china airlines unit. they will purchase jets for delivery between 2024 and 2027. the agreement is a blow to boeing and comes after airbus faced a 7 billion deal for the same jets from four chinese airlines in july. meta platforms has been sued for skirting apple privacy rules. in the proposed class action lawsuit filed in san francisco federal court, two facebook users claim the company had a secret workaround to apple's 2021 by -- 2021 privacy rules, violating rules on collection of personal data. >> take a look at how equity markets are trading on this friday, on this final friday session. you can really sympathize with traders feeling a little bit short of energy after what's been a massive week of central-bank decisions as well as huge implications for

currency markets and bond markets as well. the kospi, down 1%. coming under similar pressure we saw of course with trading in the u.s. overnight. the nasdaq 100, now trading 35% cheaper compared to where it was at the peak in 2020. you've got to wonder whether some of that value is coming back in for asian tech stocks as well. here in sydney, we are seeing stuck straight down by 1.5%. kiwi socks, on the back foot, as well. coming up next, don't miss our reclusive with the philippian central bank governor, phillipe felipe medalla, on their fight against inflation, and steve bryce will be along with us talking about the de-risking strategies in china and asia. that is it for "daybreak asia." coverage continues. this is bloomberg. ♪