shery: coming to you live from

new york, cindy and hong kong. haidi: we're counting down to the asian market opens. asian stocks in currencies may get some rest by. treasuries are getting a break from the brutal selloff. the bank of england intervention is pledging unlimited buying to avert a crash. we are live in tampa, florida. shery: take a look at futures across the board. sea of red as u.s. futures are under pressure after stocks and bonds rallied in the new york session. more optimism and calm given the boe intervention in the markets. the s&p 500 gaining ground for the first time in seven sessions.

the dollar is easing from record strength. the 10 year yield is falling. we had oil prices rally. we are seeing a little bit of downside. annabelle: we are charting progress in reaction, the boe intervention stepping into prop up the gilt market, offering to buy an unlimited amount, we are looking at duration to see the reaction, a big move. let's take a look across currency markets because we are at intervention watch. the pboc coming out and saying

banks thing to respect the yuan experience in other markets, korea is another. we some moves with the korean central bank pledging to buy as much as 2.1 billion dollars worth of sovereign debt. taiwan looking to introduce currency controls, other markets having interviewed including indonesia. you can still see a picture of dollar strength amongst most currencies, we could be seeing. moves in yields, we could see little bit of relief given we have seen what we have seen in futures, the bottom of your screen is looking higher for the

markets in australia and new zealand, australia is pointing to the downside. haidi: the first major central bank to pivot. is this desperation. guest: may be some breathing room. some of us going on politically, economically, calls for the u.k. chancellor to be replaced, wants to stick with tax cuts. against that backdrop, looks more like desperation because of

what has gone on over the last couple of days into a space where it's going to affect everything else. creates credibility problems. i put them in a similar bind were japan has had a crash and currency. the problem is that u.k. has a smaller backstop when it comes to foreign exchange reserves, does not have local investors the way japan does. it's part of the picture were central banks everywhere are facing difficulty because they are determined to fight inflation by crushing demand.

shery: not necessarily an inflation story in china, we are seeing the pboc as a reluctant player. guest: the pboc has been trying to slow the pace as long as the fed continues to raise rates. china's economy means lower borrowing costs. that dynamic will push the renminbis down. i don't think the pboc has any illusions. what they don't want to see is a disorderly one-way slide in the currency, that is what you saw overnight and they came out with that statement. for 25 consecutive days they have come out with stronger expectations and has allowed the currency to continue to slide.

we have not been here in a long time. we will continue to see weakness in the currency. haidi: what are we seeing in terms of the next steps for china? the verdict is out of the party congress and whether that sets up a pathway to coming out of covid zero. guest: we have not seen any direct intervention, that's always a possibility. i do not think the pboc will like to do that. at the same time, if the remedy is down, something like a three decade high versus the japanese yen. there is a consideration for an

economy that depends in large part on exports making sure the economy is competitive. that will be in the spotlight. the pboc is trying to manage the depreciation. it is not necessarily against it. shery: when it comes to the measures taken by authorities, korea, taiwan, japan. are any of those more successful than the other? guest: you could argue korea is doing a decent job because it has not had to seriously intervene. asia, taiwan.

those countries are being significantly better. if they have china and japan next to them, they have strong trading ties, i'd to the tech industry. they face a world of problems, for the moment they are hanging tough. in a lot of ways of matters most is whether the pboc can keep things under control, some relief from the strong dollar thanks to what the boe has done, the yen is away from the 145 levels with -- which had people nervous. it could be an interesting next week.

have a traditional monday lack of liquidity, the start of a bunch of data coming. if there is any relief, we should enjoy it while we can. shery: plenty of things to watch out for. investors in the commodity space are watching and extreme weather events. hurricane ian hitting florida with a massive surge of water. let's cross live to tampa. what are you seeing now? reporter: things. the wind has gotten worse. there have been times i had to

brace myself and hunker down. this is nothing to what the folks are feeling. rainfall happened a short time ago in the storm continues to track upward. the storm has downgraded to a category three. a major hurricane. we're expected to feel the impact of this. haidi: i am glad you found a little bit of shelter, what do we see as the impact in inland areas? reporter: and then see catastrophic impact, talking about flooding the music attack. some parts inland could get up to two of rain. the storm has the ability to hover over the state for up to 47 hours. we're talking about being

drenched that can hamper the recovery efforts in disaster response. we're going to be dealing with this for days on end. haidi: morgan norwood. >> thailand central bank raised borrowing costs. the move puts the pboc further behind policy tightening. the monetary committee says it will be flexible on future rates while reiterating a gradual approach [indiscernible] rate hikes erdogan has assisted

-- long insisted higher rates bring down inflation. north korea fired missiles ahead of the vice president visit. kamala harris is said to visit the dmz later on thursday. the launch is the second this week and as for the record number fired this year. a senior state department official told lawmakers the u.s. and allies are planning more sanctions over russia. james o'brien told a senate committee they are protecting finance, human rights and energy. >> the oil price cut will keep the global markets and energy stable.

for today, we are laying the legal basis for an oil price cut. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: still ahead, we will dive into the indian markets as we await decisions on indian bonds being included in key global industries. up next, investor strategy with someone who thinks the boe intervention will stem the tide of bad news in the near term. ♪

>> what the bank of england has done is the standard central-bank playbook. >> this was a market maker of last resort operation. >> they are worried that because of the big market moves, the pressure for forced selling. >> i think it was the right thing to do given the technical

factors that had arisen in the market and has brought some important stability to the market. >> the bank of england finds itself in the ecb situation where it has to figure out how to use monetary policy and some other measures to contain financial risk. >> we're in a situation that every central banker doesn't want to be in -- >> buckle up the seatbelt even tighter. haidi: bond buying to stave off the crash. our next guest says the effort seems to have stand -- i want to

throw up the question of the day. have we seen the peak when it comes to global yields? guest: there are a lot of questions. in part because the u.k. is somewhat special and having a lot of short-term fixed rate mortgages that are going to need to be refinanced in the next couple of quarters. people borrowing having to refinance would have a bad effect on the overall u.k. economy. we have probably seen highs in rates in the u.k., we have seen

highs in the near term in the u.s. because we expect inflation data to become more comfortable or lower. elsewhere in the world, rates go higher in europe and china and asia, rates are flat. in the case of china, yields are coming down because the pboc is easing rather than hiking. haidi: your outlook is more optimistic, reading through your expectations. you make the point that nominal growth is at a higher level compared to the past decade in your more positive on the upcoming earnings season. guest: that's absolutely right. folks have not gotten used to the idea we're in a high nominal growth world and companies have

pricing power. that is what has kept the equity market afloat. if you look, rates have backed up dramatically notwithstanding the pullback in yields today and yet the equity market did not breakthrough convincingly. the reason why is earnings are going to be ok because the preannouncement season, mainly the last month -- month or so has seen few announcements. overall, the earnings is 4%. we think that will be met quite easily. if we get to the peak in inflation will bring down the dollar, the dollar is key and if the dollar rolls over and is super extended, if the dollar rolls over, that opens up

opportunities across commodities and global equities. shery: how much do expect king dollar squeeze profits already, and when are you expecting it to ease? guest: that is the $64,000 question or $64 trillion. we have been expecting it for a while, this is an issue in the markets. everyone is extrapolating. inflation has surprised to the upside. everyone is extrapolating that's going to continue. we think the data is suggesting inflation is going to ease, and when inflation eases, that will give the fed an opportunity to cause because it's had a very aggressive rate hiking cycle. when that happens, the spread

between the dollar and other interest rates will narrow and that will mean the euro gets a bid and the dollar rolls over. emerging-market fx which typically goes badly when the fed is tightening, has actually done better than the developed market. that suggests em is getting ready to leave the turn away from the dollar -- shery: we have seen hedging costs. we will have to leave it here, we're out of time. thank you so much. you can get a round up of all of the stories. today's edition of daybreak is

on the terminal, also available on bloomberg. this is bloomberg. ♪

haidi: hong kong airlines is aiming to restructure 6.2 billion u.s. dollars worth of debt to stave off insolvency. they are seeking approval to put forward restructuring proposals. it says the plan will include a significant haircut on debt. cal b has raised $1.3 billion after pricing -- the ev battery maker as -- the offering true 15

investors including pnc lithium and iphone maker. nico securities is facing regulatory penalties for stock market manipulation and mishandling misinformation. the brokerage -- they have apologized and except the recommendations. let's take a look at how we are faring in the currency space. some cool back, basically every single currency, the dollar falling the most in six weeks. it's being passed through, the bloomberg dollar index, the aussie dollar on the back foot

just over $.65. dollar and china sitting at 7.16. dollar yen 144. we are seeing the impact of the impact of intervention measures when it comes to the yen. we are seeing recovery for the dollar index after falling 1%, the most since august. coming up next, talking about india's index.

anabel: this is "daybreak asia"

asia with a check on markets 30 minutes out from the open in japan, korea and australia. looking at futures pointing to a bit of a relief rally. a lot of, coming back into the global markets without intervention from the boe. in asia we could see a little bit of a move here relating to what we see in terms of this buying. we are looking at where the markets are oversold in terms of the rsi on a 14 day basis. you can see that hong kong and south korea are looking very oversold amongst the most since around 2020. other benchmarks also on the cusp. you could see japan and china. japan has been one of the big outperformer's in asia this year, just given the weakness that we have seen in the yen. india here at the top faring a little bit better than others. markets have been able to retract a sizable pool of foreign capital for a number of reasons. last month they did see the biggest inflows from foreign investors among emerging

markets. let's change up now because i can't really say the same for its bond market, but that could be about to change. you can see that foreign investors have been buying up tv in bonds over the last couple of months. this is all around anticipation that indian bonds could be included in ee and indexing clade it -- compiled by ftse russell and j.p. morgan. that would be a major milestone for the country because indian debt is the only debt amongst the emerging world that is not included in global index. so the expectation is that it could perhaps replace russian debt. if you change the foreign inflows are hoping indian bonds beat their global peers on a year-to-date basis. you can see we are still in positive territory compared to eight wednesday percent route for other markets. but the results of this review from j.p. morgan and ftse russell is due thursday at certainly want to be watching. shery: let's bring in our next guest who says the addition of

indian bonds would be positive for global investors in indian markets. with us as the senior investor strategist at standard chartered wealth management. great to have you with us. of course the benefit will come if it actually happens. and bloomberg is now hearing that they have ruled out any changes to the task policy. doesn't make sense for these compilers to go ahead even without those changes? >> that is a valid point. if you think about it, indian officials have been in the process of engaging with providers since 2016. in the relative issues have been one of the key forms of contention for index, as well as international investors. there's another issue around the betterment of local houses. whether that's easily resolved. so, in the near term, the resolution around this could mean that there could be some

feeling and the inclusion of indian bonds in the major indices, that i think it's a matter of time. we can take examples from guidance from the chinese bonds. at the end of the day, they are easily resolved if both parties want to do it. shery: which would make em indices more representative. tell us about the changes that have occurred so far in india that gives rise to this optimism coming from investors. we saw the likes and 2020, for example. >> that was a major change that removed restrictions for international investors and investing in indian bonds for concern. they are bond eligible under rules that were quite substantial over the last few years around 60 billion around 280 to 90 billion dollars with a bonds. think about the fact that you need index inclusion that comes with a little bit of a lag.

in due time, and second half of 2023, then the size of bonds could be around 353 billion dollars, which would make india amongst the largest bond markets accessible to international investors. so you could see indian bonds and most of these indices being fairly high. slightly lower than china. but that would mean that the index composition of index rate with a lot of other emerging markets with decline. you could see money going down markets such as south africa, thailand, north asia into indian bonds. haidi: is india better positioned to weather the storm from a strong u.s. dollar at the moment? >> it's a relative call at the end of the day. if you look at the external balance for india, obviously rbi has spent a lot of the effects

to defend, but currently india is in a different possession -- position. yes it has increased, but we expect oil prices to decline in 22 any three, which means the current account deficit in india should reduce as we move along the next year. it is in the position to weather the storm, that's why we have a bullish view on indian assets. and we have a view on indian ruben -- ruby on a 12 month horizon. haidi: when you talk about light foreign investors positioning, how much of the boost could you expect to see? >> it depends on which bond is included. there are three providers, jp morgan, -- [standby]

inflows would account for around 20% of the next supplies and ig these that you would expect to see in the next year. shery: the expectation right now is that the rbi will start gearing down his tightening when it decides on rates this week. has that already been priced into the market? >> we have a slightly different view, so we think the rates will be a slightly different view. the consensus expectation was that rbi would hike rates by 35 basis points. but given the fact that the fed, ecb and boe have all been hiking

rates, just put the incremental pressure on rbi to hike rates by a slightly higher magnitude and additionally we think that inflation in india could be a bit more positive than expected because the depreciation it goes higher than inflation. and also look at india that has been a bit more patchy, so that could lead to higher food price -- food prices down the line. so we are expecting a slightly higher than expected hike relative to what markets expect. and we think the rbi rate hike should be around 6.5 percent. around 110 basis points higher. haidi: senior investment strategist at standard chartered wealth management. let's get you to vonnie quinn with the first word headlines. vonnie: the bank of england has staged a dramatic intervention to stave off an imminent crash from the deals market. it has unlimited pressures. they have so far purchased just

over a billion dollars of securities for 20 years or more. they tell bloomberg do u.k. government has no plan to change course, thus triggering market chaos. china's central bank meanwhile has set up its defense of the weakening yuan with a strongly worded statement against speculation. the pboc warned investors not to bet on it, saying it would be incurred in the long term. offshore yuan has dropped to its weakest level since 2008. it's on track to its worst year since 1994. pakistan's foreign minister said the country will need to -- the imf package signed last month because of the financial toll from recent floods. the prime minister renewed his toll saying the damage is expected to receive $30 billion. he also warned of a looming food prices -- crisis due to the flooding in warren ukraine. >> as far as debt relief is concerned at the moment, we are

talking about our rescue and relief operations and going forward, once we have made assessment, that we will have a broader conversation with all our partners about restructuring and conversations around debt. but my conversations, whatever my conversations with china, it will be between pakistan and china. vonnie: global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: north korea has fired two short range ballistic missiles into the sea off the east coast ahead of the visit by the u.s. vice president to the demilitarized zone separating the two koreas. for the latest, let's bring in stephen engle and hong kong. never surprised to have north korea heighten tensions ahead of a big event. what are we ex-pence -- expecting from kamala harris visit? stephen: the vice president kamala harris is hitting on a

number of hot button issues for the united states in the western fist -- and the western pacific. particularly in visits should japan and now today she's touched on securing semiconductor supply chains. she led some job -- to support taiwan what she calls disturbing behavior by china in the east. now she moves her talks from japan to south korea. she will make a visit to the demilitarized zone. you are seeing pictures of the border between the two koreas. we did get those into this ease of the east coast of north korea as north korea sees harris visit south korea as a provocative move? obviously they returned that provocative move in kind. this comes as the uss ronald where reagan, which is deployed in the western pacific, made a port of call and south korea

ahead of where games with the south korean counterpart. also ahead of what the south korean spy agencies should be the seventh nuclear test upcoming perhaps it's a very specific date. sometime between october 16 to november 7. a lot at stake for u.s. diplomatic efforts in the western pacific ahead of joe biden's pacific where he will go to the g20 meeting with it a pig's november. haidi: this is really interesting because it has the white house hosting the unprecedented leaders. while he did his big ten-day tour of the region. is this an attempt to try to woo them away from china's influence? stephen: there is a fear in washington that many of these pacific island nations are perhaps ignored by the white house, ignored or not respected

even by australia and move more into china's orbit. we saw that in may when the foreign minister of china really made visits to a pacific island. he went to the islands and he signed an unprecedented security agreement with the solomon islands. in this game ground by the chinese diplomatically in the pacific island by hosting this summit, two days summit and offering a support beyond just security. help with climate change, technology and health care. we will have to see what comes of it. but 11 island nations, papa new guinea and others will be attending the white house summit.

that's out through the south pacific encountered through the japanese in world war ii. these are smaller nations but strategically more important. haidi: our chief north asia correspondent stephen engle. we have a lot more to come. this is bloomberg. ♪

shery: take a look at critical

assets. we are seeing bitcoin continuing to slide below 20,000 but a little bit far from that one-week low that we saw earlier around 18,700. ether is also under pressure, but we did see in the previous session how the bloomberg is the one that had gained ground. we are seeing the losses and below the 20,000 level given the global macro uncertainties, crypto, especially bitcoin is still 6% above its june those. cryptocurrencies have grown more resilient in the last month after a bout of deleveraging. the token 2049 conference in singapore. >> when we have the big deleveraging with celsius and voyager and free arrows on all

these providers of leverage that went belly up. if you had to sell your soul and crypto had a massive selloff and then abounds, there are not a lot of for sellers left. so we are in this weird equilibrium where there are a few buyers, a few sellers and there's not that energy in the market like you're seeing in the equity market or bond market where you have to sell. the leverage is way out of the system and crypto. haslinda: i want to talk about the fallout. we have not seen max payne and you for seed two thirds of a 1900 crypto hedge fund will dissipate, will go into thin air. where are we now, are we close? >> hedge funds normally work on an annual basis, right, they have retention cop -- redemption, once every three months, once every year. most people will stick around

longer than they think, hoping it comes back. i don't think there's a bailout coming for funds that are down 60%, 70%. people look at the math and not making enough money, it's a long way back in the high watermark and i think a lot of hedge funds will go out of business. haslinda: regulation is at issue in their crypto space. we are seeing the arrest warrant . when you have that news, what came to your mind. >> the tariff story is a great lesson for the community. he's one of the smarter guys that i've met. i sometimes think that cockiness, that intelligent success created cockiness and a vulnerability that everyone bought into.

it wasn't like he was hiding the algorithm a stable corn -- coin. people have an overblown understanding of our participation. we were just investors. i only met him twice. i liked him, i was impressed, i invested very early. unlike we do with every token, we sold along the way. so, it was heartbreaking when the whole thing collapsed. and, i hated that people lost fortunes. a lot made fortunes and lost them. but it was also a great reminder that this is new technologies, wintry's grow to the sky into

years when a token goes from $.20 to $100 and you don't take any profit, that's lunacy. it makes absolutely no sense. you need a risk management methodology or you're going to have to -- those things. haidi: the founders speaking with haslinda almond. coming up next, plunging markets throwing new warnings across asia and previous market opens in japan and south korea, next. this is bloomberg. ♪

haidi: asia central banks are intensifying. bloomberg's mliv market strategist joins us now. simon, are we seeing the right of the dollar vigilante in terms of the actions and interventions and verbal warnings we are hearing across the region? >> is a great way of putting it. you've seen the chinese, korean authorities and the taiwanese and coming in reasonably hard with respect to the markets. and you have now reached a point where even though these authorities are not cooperating

with each other, there is probably enough of the now who are adding to the call that the markets destruction should stop and stare we should get a pause at least for a few days. shery: even the pboc coming up with a rare, public statement on non-betting against appreciation or appreciation of the yuan, you are going to incur the long-term losses. how sustainable are these interventions in the long run when it comes to the value of those currencies? >> most of the trade is speculating the short-term, so they don't really care about the long term. so to answer your questions, idle to makes much difference in the long-term. furthermore, pboc has quite conflicting signals, so they may have warm the markets overnight about respecting the fixing

rate. and it was surprisingly weak and they seem to reduce their resistance to you on appreciation. that left people still believing that the chinese authorities would accept appreciation of the currency, albeit at a slower rate. shery: bloomberg's mliv market strategist simon flint with all of the central bank intervention that we've had in the past week when it comes to asia. and, despite the uncertainty on the volatility that we've seen in ems, haidi, really interestingly given what's happening the u.k. with u.k. assets with the pound, with the boe, hedging costs for developing market currencies have become more expensive for emerging markets. haidi: it's really interesting because while we have seen a similar trend to this play out with volatility and major currencies trading high, on

monday we saw the spread hitting the widest levels since the aftermath of the brexit referendum in june, 2016. the gauge of g10 over the one-month tenor has really been on the rise since the middle of august. intervention by japanese officials and yen give it a boost. it would be very interesting to watch how that dynamic plays out because the boe's intervention may have succumbed to bond markets, but it may not have that pastor cross currency volatility. shery: it was really quite dramatic what we saw from the boe and immediately stepping into the market in order to avoid that crisis. we will continue to watch the market implications for the rest of asia. japanese energy shares and focus and they reportedly pledged

steps to ease power cause. north korea firing two short range ballistic missiles just before u.s. vice president kamala harris. it is said to visit the demilitarized zone. a reminder we are live today from the institute asia summit in singapore with the hope's of seeing some of the guests. don't miss those conversations starting from 8:00 a.m. hong kong time. the market opens in sydney, seoul and tokyo are next. this is bloomberg. ♪

(police radio call) (sirens) (news report) (sirens) (news report)

shery: this is daybreak asia, counting down to major market open as we get reaction to the bank of england. not to mention more activity coming from central banks across asia. we are talking about korea, taiwan, japan as well. haidi: we are seeing a rise of a thing called dollar vigilante and responses from asian central banks from the likes of the pboc on their respective currencies, and see whether this, that was upon bond markets can last. >> that's right, interesting to see if it can be continued. some buying on the way because we are looking very oversold across most markets. checking in now for the opening japan, south korea and the open of cash treasuries. the 10 year yield is a particular watch because we did see it touching that before pulling back, following the intervention we saw from the boe. it's playing into what we see

from yet and trading. it's coming to the markets, also helping it to perhaps stabilize the currency a little bit as well. some strategist say it could stay range bound for now, but that could be temporary and the longer term, given that the fundamental and the u.k. has a really change. in terms of the direction of stocks, we are approaching oversold territory on a 14 day rsi basis. nikkei still moving hyatt the start of traders had been indicated in futures. but mitsubishi among those saying that cpi in the u.s. is going to be the most watch factor moving forward. changing now to what we had for the open in korea, keeping a very close watch on what we see in the bond space as well, authorities taking measures here to really prop up the debt in stock markets, but announcing plans yesterday to buy up 2.1 or up to 2.1 billion dollars of sovereign debt. officials also preparing stabilization bond move as well.

some saying it's going to be really difficult for yields to come down from here, but given that anticipation is building in markets and we will see a 50 basis point move from the be ok added six meeting. we are seeing strengths coming back into it this morning, but still around that key 1400 level. and then the kospi is moving higher up 1.4%. when you look at a on an annual basis, korean stocks looking at their worst performance on an annual basis since 2008. turning to australia, taking an eye at the open here for the asx 200. it will be one of the stocks we watch at the start of trade. given it has been forced to hasten its exit. other markets include the commodities space, brent crude just coming online, little bit weaker here, but we have seen a edging a little bit lower, given the slowdown in global economies , dollar strength bank outweighed the supply concerns. >> the ninth annual milken

institute asia summit is also underway right now, bringing together top global leaders in business, finance and government, let's get straight to singapore where our colleague haslinda amin is there with our next guest. haslinda: this conference is being held against the backdrop of a market meltdown crisis, pretty much in the front and center, we have energy prices, food crisis, so how will this play out in the markets? let's get perspective from the head of asia markets at city, very good to have you with us. >> thank you, great to be here, i know the markets are depressing, but the fact that we are all here together is exciting after to a half years. haslinda: let's start with the market madness. are we added tipping point where something is about to break? >> unfortunately that is the consensus, so the consensus trade is a tipping point, the

markets are very pessimistic, investors are sidelined, other than the dollar, not a lot of assets are trading constructively. we do have a bit of a bounce overnight, the intervention and the guilt of supporting japan and giving a bit of a boost to markets globally. we have seen 10 year treasuries bounce off that 4% yield level. so the market is clearly very nervous. but what i would say, and even bigger shock to the market would be an upside surprise. something positive out of the 20th party congress. i don't think the market is position for that. there's a lot of nervousness, a lot of negativity, i think as a positive shock it would be as difficult to digest. haslinda: we talk about the mighty dollar, the strong dollar. what kind of activities are you seeing right now? >> obviously i think this year has been very much driven by currency volatility. the first wave of this really started in europe with the ukraine invasion. we saw a lot of market

disruption and corporate's were the very first affected. obviously city is the biggest global corporate bank, so we see it in real time. there was a lot of hedging, a lot of heads to repatriate currency that went throughout europe. i would seen the second quarter that really came to asia. we saw a lot of hedging activity by corporate. historically fx has been stable in the region, so corporate is really converting flows from when they were receiving them. there is a lot of focus on rethinking their risk management practice and framework, and forward hedging. look at translation and balance sheet hedging. a lot of those conversation are happening with corporate. another area is funding. they have slowing great funding or dollar funding, so in number of them are looking at their interest rate programs in this environment and thinking, is my balance sheet is my financing structure sustainable for the medium term. so really corporate is much more active on the investor side it's

the opposite. low conviction, a lot of nervousness, some areas of outperformance. but -- haslinda: everything is getting sold off. how are you advising your clients? julia: i think being cautious is important. we do have reasonably high cash levels that investors are holding. less than that. actually below 10% for most of them. i think a lot of them are trying to stay close to their benchmark , not really having massive deviations, not having very high conviction positions. we pick from our own trading perspectives. longer-term, staying on trend with the stronger dollar, and a general selloff in global fixed income. but i would say also opportunistic. trying not to run very long duration or very high positions because i think we are seeing reverses.

like we have had overnight. nimble, liquid and generally close to benchmark. haslinda: really good to have you with us. as you said at the start of the conversation, so exciting to be back together after the pandemic. but we have seen it a reopening really slowly, like hong kong. is city thinking of moving more work out of the city, perhaps tomorrow open economies like singapore? julia: that's a great question, and i would say this week as been the first week we have had a number of colleagues coming from hong kong. i have not seen them into a half years, so it has been awesome to see them. and to start booking my own travel to hong kong. it has obviously been a really tough environment for people who haven't been able to travel for two and a half years. in this space, for city, we really have been very much driven by people's personal preferences and circumstances and have not had any strategic change to hong kong as our hub.

we have a very big wealth buildout strategy in hong kong and singapore are both big wealth of hubs for us. we made a number of hires in hong kong, particularly in the wealth space but also in the markets business. equities is an area of strategic growth. retired in research and other places. i was saying in equity and credit market and banking, hong kong remains a key center. i think that's how we are treating it. we are obviously incredibly excited about the fact that it's open for business again. haidi: how do you rate the state of talent and recruitment at the moment, particularly when it comes to -- the pandemic had put a seismic shift in the workforce that has been such a key issue for banks and financial institutions dealing with this at the moment. julia: thank you very much for that question. obviously, female recruitment is key area for city.

we announced our new goals. we are aiming for 43.5% of female representation in our officer ranks by 2025. we are about 40 plus percent now. but interestingly, we have seen an uptick in recruitment of females. overall we hired 6% of the workforce. in terms of women, we have nearly 15%. i think we are doing well in attracting women. i would not say the reaction to the pandemic has been uniform, i think it has been tougher for some. i personally really needed homeschooling. i did not love hanging around the house, so we will see whether there will be long-term effects of that on female workforce participation on balance to the extent that it introduces more flexibility into workdays. and i think city globally has much more hybrid work and many more hybrid roles that are designated.

but we are seeing no increase -- more increase and more women are coming back to the workforce. we are working hard on this. haslinda: not liking homeschooling? julia: amazing. i realize what i pay for in school is babysitting, someone to take them away. haslinda: talk to us about your strategy. it is a space where it is expanding very quickly. julia: i have always worked at city in asia in one of the reasons i have loved it is because city is the most global bank but also the most asian u.s. bank. at the moment, even at our markets business, we generate 25% plus of our revenues from asian products and asian clients, and that's really growing. what we think about going forward? impart we are continuing to build up our equity platform. that's on the record. globally james talks about it. our global head of markets.

it's a tough environment, but we actually have a city diversified equities business and we do a lot in derivatives and hedging products were wealth clients, our own wealth clients and other institutions. i think we still are pretty focused on our position in equities. i do believe there is a real change in the way local markets are thinking about investment products and financial markets. the demographics and asia are shifting, populations are aging. we are really doubling down on our local footprints for onshore and 15 countries in asia and we are spending a lot of efforts creating domestic products as opposed to getting those investors into global markets. finally, we have a lot of expertise in financing and asset-based finance. obviously a tricky time right now. we could talk more about what will happen asset prices, but that's a key area of focus for

us. it's quite a tractor from a return on assets but we have a lot of global expertise. haslinda: the specific growth in everything you are looking at and how are you testing risks in north asia? julia: again, everyone is focused on india and southeast asia. it's exciting to be here and a good moment. hopefully we do see material growth and infrastructure development. both in india and in terms of access, in terms of the ability to hedge, the ability to finance, that would be great to see. north asia continues to be an important market from a revenue perspective. it's still much more sizable than southeast asia for us. we've been onshore and china since 1902. we been onshore in taiwan since 1964. we have a long-term presence in these geographies. not just important clients for the region, but for the globe because they buy a lot of dollar products for -- from us. so, we are continuing on. we are steady, serving clients,

serving global clients and regional clients, and we are thinking about contingencies like any other company. haslinda: great to have you with us. julia: great to see you and hope we have a great conference. haslinda: head of asian markets at city. back to you. haidi: haslinda there. we will get more from the summit later this hour. we are joined exclusively to share the company's growth plans and their big tv and patients are this get you to vonnie quinn with the first word headlines now. vonnie: central banks raise borrowing costs and puts the bot further behind hiking the regional peers and delivering inflation and currency weakness. the monetary committee will be flexible on future rates and we have a gradual approach to shield economic recovery. the turkish president has called

for a single-digit interest rate by the end of the year. rates have been lowered to 12% but he said to expect further cuts. that's despite warnings that rate hikes are needed to change the surging inflation levels are more than 80%. erdogan has insisted that higher rates bring down inflation. a senior state department official told lawmakers that the u.s. and allies are planning more sanctions against russia over its invasion of ukraine. he told the senate committee the measures will target sectors including finance, technology, human rights and energy. the eu is proposing a new set on russia including a price cap on crude sold to 30 countries. >> we will reduce russia's revenues on one hand, and it will keep the global markets for energy on the other hand stable. so today, in this package year, we are laying the legal basis

for this oil price cap. vonnie: north korea fired two short range ballistic missiles and waters off of these coast ahead of the u.s. vice president's visits and the demilitarized zone. kamala harris was set to visit thursday. the white house official will do so. it launches north korea second and as the number of ballistic missiles it has fired this year. global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn, this is bloomberg. shery: trading underway in major markets across asia. that's turned to bill for woods moving. -- annabel for woods moving. annabelle: shipping stocks on that story for wet vonnie was talking about, the eu could be adding oil to shipping restrictions. looking at the downside for shipping stocks. they were under pressure, particularly in europe because there are those concerns over

potential opec-plus production cuts, that would mean fewer cargo to transfer. let's take a look at another name we are watching in the energy space. this is australia's top carbon emitter. it's looking a little bit unchanged this morning. its biggest investor, this is mike cannon brookes and they will be exiting a full decade earlier than what was originally projected. haidi: such a big story when it comes of that push for the transition. still ahead, the ceo of indonesian conglomerate joins us to discuss the outlook. that exclusive interview was later this hour. billionaire investor says cryptocurrencies have grown more resilient in the past month after a bout of deleveraging. our interview with the founder of galaxy digital is next. this is bloomberg. ♪

haidi: we are seeing common that relief rally bouncing back.

this after the six-day slide after the intervention by the bla 2 -- boe to restore. that is really being seen across asia. the nikkei 225 city has gained eighth of a percent. the cost be really bouncing ahead about 1.5% and those gains. here in australia we are seeing the strongest performance of the region up by 1.7 percent. i should point out when it comes to kiwi stocks, they are set out by the most since 2008. that is a policy diversion story in the reserve bank's early start to monetary tightening. potentially the bulk of the heavy listing already being done, really allowing the nation to come out in a better state than. a lot of the others have recession risks despite some of that recent one. for more, let's bring in enda curran in our mliv strategist mark cranfield. i will start off with you on the boe. clearly we are seeing -- seeing that short-term restoration of a

bit of breathing space. how sustainable is the strategy in terms of the ability to restore confidence when the fiscal side remains the same? anda -- enda: there have been a lot of difficult jobs with the policies being enacted. the current account deficit in fiscal deficit. so it won't change. including the pound on the bond market and the bank of england. we've got a lot to do. everybody's credibility is at stake here and traders can see right through this. they feel they can see the difficult job and we have a strong dollar in the background and we have huge interest rate differentials. which have the pound to the extent where people can say yes, this is a cheap, cheap currency. that is still working through. yes, it is a very difficult job

in restoring credibility and confidence in the u.k. market. it's going to take quite a bit of time. it will just have to supply us so they will accept more volatility. there is not too much currency. the reserves in the u.k. are showing a reluctance directly in that respect. so they will continue to help out where they can. so with the fundamentals are clearly working against them and there's no easy solution. there will be large rate hikes in november. there would have to be several. they have to get u.k. yields well above u.s. yields stabbed any chance of stabilizing the pound. shery: it's a difficult situation for most global central banks. if you do too little, you are seen as helpless. if you do too much, you are imposing on free market. like china's handling of the bubble in 2015. the pboc has become more active.

enda: it's becoming quite active on the exchange rate. apologies. the pboc is telling the market, look, it's wrong to bet on one-way direction for the yuan. it is up or down. they are making a point that market players have instability when it comes to the yuan. it's a coded warning to chinese banks got to be facilitating any time it of speculative trade. and of course they made a clear warning and they have the tools and the experience and handle spectators betting against the yuan for their net losses long-term. to your point, pboc can say that, but we know the fundamentals are why yuan is at its weakest against the dollar in 2008. it's because of this aversions between the fed, the pboc, monetary policy and because of china's own economic slowdown. obviously those fundamentals anywhere would point towards a

weaker currency. that's what's going on and what prompted the pboc to give this morning. haidi: mark, the same question is posed. you have south korea joining the list of interventions. you have taiwan floating the idea of currency controls. this is really kind of the set up of how the rest of the world deals with the fed and the rights of the dollar? >> you can see there -- mark: you can see there are never central banks and governments around the world, especially in asia. 1997, they don't want to repeat of that. of course the conditions are not the same, but the strain of the currency has been mixed. some of the news and foreign-exchange markets are extraordinarily, even strong currencies like the singapore dollar -- that shows issues that money moving into the u.s.

dollar away from asia is really essential. but yes, we have a lot of people threatened about the risks since they were headed to another situation like an crisis. started with getting the dollar back into a more normal range. they you will hear a lot more from other asian central banks. shery: bloomberg's mark cranfield and enda curran there. planning more to come on "daybreak asia". this is bloomberg. ♪

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boe's really dramatic intervention in the market, taking the u.k. 30 year yield really down by almost 01 percentage point. take a look at how european futures are trading at the moment because we've got equities recouping earlier declines, and they are all pointing higher at the moment. the euro has been supported, the pound has been supported because of the boe action. coming up next, indonesian conglomerate is increasing its focus on the eeev and renewable energy. our conversation with the ceo on his business outlook, next. this is bloomberg. ♪ millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing, the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there.

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vonnie: this is "daybreak asia".

u.s. national hurricane center says hurricane and continues to better florida with catastrophic storm surge winds and flooding. almost 1.8 million homes and businesses have lost electricity as the category three storm beryl's inland. more than 2 million people were urged to leave their homes. latest estimates put the potential damage bill at over $67 billion. the bank of england has staged a dramatic intervention to save off a crash. it's pledging unlimited purchases of bonds. the boe has purchased just over a billion dollars worth of securities. sources tell bloomberg do u.k. government has no plan to change course on the tax cut that trevor's -- triggers the market payoff. and while, china's central bank has stepped up its defense of the weakening yuan with a strongly worded statement against speculations. the pboc warns investors not to bet on one-day moves in the currency, saying losses will be incurred in the long-term.

the onshore yuan has dropped to its weakest level versus the dollar since 2008. billionaire and philanthropist mckenzie scott has filed for divorce. that followed her 2019 split from amazon founder jeff bezos. it has estimated at almost $29 billion. she announced the marriage last year with a joint pledge to give her fortune away. filing those statements with separation contract. this is bloomberg. ♪ -- global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn, this is bloomberg. haidi: we are seeing pretty positive gains after the boe had intervention in gilt markets really restored some semblance of calm across the global markets. we are seeing gains being extended in australia where we see energy busting through with gains of over 3%.

materials not far behind, but that jump after the strongest day since u.s. stock since early august after the bank of england unveiled that bond buying program. let's get you back to the asian summit. haslinda almond is standing by with our next guest. haslinda: the transition for clean energy is a big focus at this summit, let's get perspective from the ceo at berkeley and brothers. this is a conglomerate that has big ambitions to be a big player in the team energy sector. good to have you with us. talk to us about those big ambitions. where are you? how much progress have you made? >> we have big ambition because i think we are lucky. indonesia, when it comes to energy and climate change, i think i believe there is no capitalization without indonesia.

so, for my group, we believe that in the next five years we should be investing up to $2.5 billion in see -- and energy and the financing. we are lucky that we are in -- within rights of commodity prices and do a lot of leveraging in the amount that is about the same. $2.5 billion in the next 12 months. so as a group we feel that we should redouble in the electrification of renewable energy. and i think indonesia is the right place to start. but at the same time, you can think of that as global at the same time. haslinda: how challenging is that given that your traditional company dealing with oil and gas, dealing with all of the other sectors out there? >> actually, it's exciting. if you look at it in terms of

indonesia, it has the biggest, for example, ripples. we have the second-biggest in the world and probably top 10. when it comes to electrification and ease in energy, which we can do almost everything in indonesia with geothermal, energy, solar, we work on that. so for us coming from hydrocarbon to focus so that hopefully we can do 50-50 with renewable energy, it becomes much easier. however, it takes several -- it takes a lot of commitment. that's why i mention deleveraging as a part of the story that we want to do in the next 12 months. who knows, in the next 12 months it could be one every day for a debt or even lower or zero. haslinda: are you looking to do this on your own, or could you bring in partners? >> i think the world is about

collaboration right now, so we have to work together if that's where we really want to be. for example, the electrification project, we are working with new ids, given transportation. we mentioned about 10,000 alone and we need somebody who would have expertise. having said that, whether we focus on esg or hydro based material, we work with it because it gets the esg, hydro materials. so we believe in globalization and it is going forward. so i think right time, right place. shery: you mention europeans focusing on the sector at a time when they are really dealing with the energy crisis. when you look at the world right now, this crisis that we are

facing, is this delaying promises to transition to lower emissions energy, or does it accelerate the transition in a way? >> i think it helps to accelerate. we mentioned the energy ambition of the group, but it has a lot of ambition. let's not forget when we talk about all this that it has. at the same time it has energy. this year a lot of the challenges a lot of people have, in the long run, energy with 500 possibility in indonesia. at the same time, you want to do it would just transition. it is important for the development. haslinda: we talk about

indonesia's clean energy transition, but this is a country that has its consensus to have cold. how do you transition that? >> starting in 2025, there is no more coal mining for powerplant. however, when you start doing it, we believe that in terms of renewable energy, it should be one composition. it's something that the government has mandated. and we have to make sure that it's not only on the supply side that we focus on renewable energy, but also the side from the consumers. i believe people using the motorcycle, and i believe the same thing also for cars. so i think we will lead by example.

>> what you think of the biggest challenges in this transition? >> i think it will be making sure -- >> for other countries? >> was interesting, let me give you one. they talk to us and say, it's stable. but the amount of the gasoline price that they pay every month, it's about $60. they have used subsidy of gasoline by 33% and that 33% is equal to $10 billion that they will include. haslinda: i want to touch on the meltdown in the market, how is it impacting sentiment among businesses in indonesia? >> it hasn't impacted that much

in indonesia, maybe about 5% and it's one of the lowest. and obviously -- are not saying it's easy of 4.7%, but it's average. and we are maintaining that also by way of expressing a lot of good overseas. we should get an all-time high of trade experts. and it shows raw materials. there are deals. so basically, those things come in handy when it comes to the rupiah stable. plus our debt is only 20%. we have a lot of room of fiscal growth. haslinda: it is an emerging market. are you seeing and anticipating that, and how are you responding? >> i think that we can say we

are immune's -- we cannot say we are immune to all the risk, inflation risk, but at the same time, to make sure we take advantage of the challenges and opportunities. for example we focus more on renewable energy and electrification. indonesia has been pretty much right in the middle going to both aisles, to make sure they can help in this. and lastly, when it comes to the risk of inflation of the energy crisis, luckily it also benefits from the amount of inflation that we have. at the moment that we have gone back to renewable energy. haslinda: ceo. wide-ranging interests in

surrealist day in expressing optimism that indonesia will overcome all these challenges. haidi: haslinda almond there in singapore. find out why total energies is not worried about this winters gas supply despite the nord stream gas leak. exclusive with ceo next.

>> this is a nice picture, a sea of green with trading across asia. you see the calming effects of really the boe -- the boe surprising unlimited bond buying. gilt markets really restoring some semblance of debility. the question is how long that stability can be sustained for. we are seeing that broader equity rally hereafter the stronger day for u.s. equities since early august, and we see a lot of those gains particularly when it comes the of the australian session by the rebound in energy and materials. let's get you a closer look at what we are watching in the markets. it is nice to be able to talk about a rising market after all this time. >> that's right, definitely. still lower. i don't want to pour cold water but i'm looking at the reaction we are seeing in currency market.

we are starting to see the pound pulling back a little bit this morning. traders think the underlying fundamentals, unfortunately had a really change, so we do see more downside pressure for that country moving forward. in terms of other regions watching all areas, intervention from central-bank and authorities, really the order of the day across asia. taking a look at what's happening in the offshore yuan following that big note that came out from the pboc, basically telling corporate's and financial institutions to respect the yuan's fix. we are seeing the options trading. even though we see it looking a little bit weaker. options trading does suggest we are nearing the end of the rally, not entering another leg higher for the currency there. weaker for the chinese yuan. korean won is one of the best performances at the start of trade. we did of course either be ok pledging to buy as much is $2.1 billion worth of sovereign debt,

and then japanese yen is still a watch around that 145 level that starts the intervention from authorities. in terms of all the volatility, is quite interesting to look at the one market offering a little bit of stability and safe haven to investors. it's actually been outperforming this quarter up around 2.3% versus more than a 10% drop for asian stocks. taking a look at the outperformance of kiwi stocks to the asia pierpoint now at the best level or the widest gap of outperformance we have seen since 2008. there's quite a few factors at play. the rbn said as we know was a frontrunner in the tightening cycle. so the implication are results of that is that they are a lot closer to taming inflation pressures. also have a robust kiwi dollar. and then agriculture is also a major part of the economy, so that does blend a picture of economic resilience. shery: finishing up on agriculture and commodity. that broader space has seen the

impact of the tensions over ukraine. french giant tou thao energy saying that the gas supply to europe has not changed much after the nord stream league after was told to europe that the storage is full for the coming winter, the problem lies in the longer term. >> is already enough that they are throwing any gaps to europe for some months. the dependency of europe to russia before, so it does not change a lot for this apply to the european markets today. we know that europe was over dependent. so we are working to bring gas from outside energy. it will come from the u.s. and will come from qatar. we are working to do that.

i could tell you that for the winter the come, the storage and i think because of the process, we are good for the winter in europe on the gas side. it is another story. we are safe and i am optimistic because there is a lot to fill the storage. then we come, some cushion -- cushion to europe with more to come. the only thing is to come for the future of europe with gas. taking commitments for the u.s. >> how hard has it been to extricate yourself from the long term relationship you did have with russia? how hard has it been to pivot and ensure there are incredible

relationships with qatar continuing to dig deep? >> we are in many countries around the world, of course we spend time. having said that, as the ceo of a company, when you have a problem like what happened with russia, it is more than a problem. it's a consequence. the consequences clear. nothing more than any project in that country. it is quite a unique position in russia. we spend years, 15 years, but the game is over. just because i am responsible to the capital, it is safe to invest in that country. we turned back to others. i spent three years of my life 20 years ago, a lot of personal relationships. there was an art with access to these new ones. qatar has a giant project. as 20% of the market. they want to add as a supply. the market requires it.

so we made some good offers and we would be larger pauses. you look at the longer story. the first to invest in qatar 40 years ago. energy long-term relationship, not just fundamental and part of the dna of the company. so the consequence of that for me is clear. we have to be careful about geopolitical risks. let's spread our risks in order to be able to rebound. we believe in energy. energy is a very good business. we invest here in the u.s., the u.s. investing in energy and renewables. shery: ceo of tou thao speaking with caroline hyde. let's get at -- get a look at -- how selling part of its to any percent stake in green energy. that stake was worth about $10 billion at the end of august. the ceo says that the holding in

the company is a source of potential cash and its balance sheet is safe. deutsche bank's ceo says they are growing up plans to deal with risks from any u.s.-china tensions over taiwan. in an extrusive interview with bloomberg television, they say some clients have approached the bank about reorganizing their asia supply chain. it says china is a key market, but any dependencies should be rethought. >> we have our learning. we all hope that there is no increasing conflict on taiwan. in particular europe and germany are postpone. shery: the australian billionaire has nominated for new to agl energy six person board. next month's annual meeting could set the stage and jeopardize the role of new chair

patricia mckenzie, who was elected last week. they are pushing for change at agl, which is one of australia's biggest supporters. play more to come. this is bloomberg. ♪

shery: asia and central bank has

intensified efforts with china having a statement on the yuan. for more, let's bring in china effects and rates reporter. i do wonder how much this will help and for how long when you have rate differentials playing apart. not to mention we just heard from a top white house official that there won't be such a thing as a plaza accord this time around. >> the pboc is basically trying to stabilize the sentiment. more of the same messaging. earlier today they told traders to stay rational. the pboc issued a statement yesterday saying they were warning corporate's against a one-way betting. they are trying to dampen the behavior. they did say you will lose money if you bet against the yuan. the timing is interesting. the pboc had to fix the yuan at a slightly less strong fix, which kinda gave the green light for the offshore yuan to kind of seeing to that record low. but after the pboc announcement yesterday he offshore yuan did

reverse the declines and actually did end up gaining at the end of the close. shery: what more are we expecting from authorities, because they have already come out and warned funds to not short stock sales, given that the party is coming up? >> their daily fix is one to watch. i think it will take a couple more days for us to see how everything plays out with the yuan. we know that in the market there has been a broader risk reduction overall, but the market is showing a 60% move towards the yuan -- offshore yuan headed towards at 7.3. shery: we are looking forward to it 20 minutes from now. china effects and rates reporter. coming up, don't miss our exclusive conversations with the singapore tourism board ceo and the deputy president. this of course from the milken institute asia summit.

plus, we will speak to the co-ceo about their global investment strategy. still ahead on bloomberg television, hong kong eases travel restrictions, with many other covid rules remaining in place. all be speaking with the city's health secretary about the timeline for getting back to normal. that exclusive conversation coming up. that's it from daybreak asia. our markets coverage continues as we look ahead to the start of trade and hong kong, shanghai and shenzhen. standby for bloomberg markets china open. this is bloomberg. ♪

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>> somebody says i want to have an impact on society, what would you suggest somebody do to work their way up? >> you have got to believe in something you really care about. david: this is my kitchen table. it is also my filing system.