shery: you are watching daybreak asia. haidi: we are counting down to asia's major market open. our top stories this hour, a markets again after wall street treasuries surged and manufacturing data countdown more aggressive fed hikes. shery: one large jumbo hike today, policymakers balancing employee control against the quick hit to growth. the trust government has an embarrassing fact on the tax cut for top earners. >> we have 10 minutes until they get fully underway, the session, he threw in the bond space. the yield propping for the two

year and the 10-year yield. -- dropping for the two year and the 10-year yield. it is waiting for how aggressive the fed will be in the tightening cycle. that is a decision from australia central banks, most economists are seeing the rba hiking by 50 basis points for a fifth consecutive meeting. ahead of the meeting we are seeing the terminal chart here, we take a look at volatility on a one week basis. that is spiking, we are at the highest level since april 2020. the aussie dollar trading around $.60. we are seeing a 22% decline down to $62 66 by the end of the week. shery: picking up on treasuries we have done a rally across the curve, after recently topping the 4% level. that is all to do with

expectations of what the fed will do, given we have it week manufacturing number. we are expecting a friday's job numbers to come out to give us more direction on where treasuries are headed. in the meantime, u.s. futures are following stocks. this is after the s&p 500 had the best day since july. we have moved companies on the s&p 500 and gaining ground. the vix is stabilizing towards the 30 level. that will not over tighten given the weaker data we have gotten. oil prices in the asian session are under a little bit of pressure after jumping more than 5% given that we do have the opec-plus meeting on wednesday. expectations could be supply robotic and how that will really stress the market and supply -- roll back and how that will

really stress the market and supply. the geopolitical jitters, north korea fired a missile according to japan authorities and they are warning the public to take cover. haidi: let us get some analysis from our correspondent for asia. talk to us about the markets. it is an awkward pause as we wait for more bad news. wall street is unable to decide how much of a downside this is. >> wall street has a routine to find what they can buy. we had -- haidi: the earnings are to the upside? >> how long can we keep on getting beaten down? they keep on, the keep on

charging forward and the fed is going to keep taking the football away. the latest spurt was in the treasuries market. one thing is we had nine straight weeks of treasury yield. we do wait for a come down from that. we have some relief from the u.k. situation. we have a big selloff at the end of last week. we had week data overnight, manufacturing, data would i strongly doubt the fed is giving to hoots about. they treasury rally, it did help , in equities. this morning, treasuries are getting an extra spike as you mentioned, the north korea missile and on the one hand, there has been a lot of them, this is telling the citizens to take cover. it went over japan and landed in the pacific.

that was a bit more concerning. it the yields which will catch up because we had a public holiday yesterday, drop as much as 17 or 18 basis points. in the normal times it would be a huge move. at the moment is just a little bit extra. that does not tell us anything much about what we are likely to get from the rba today which is another 50 basis point hike. haidi: that is what the market is expecting. it could be one of the last moves for the rba? >> this is one of the rare meetings from the rba where we are not for sure what they will do. i think after the signal last month that the outsized rate hike has gone from the oil

markets to the gains. that will be the last big change. this will be closed towards the end of the tightening cycle. shery: what are we expecting in terms of the market reaction? >> as she was highlighting, there is interest in australia. we also have the rba, when do they pivot? the actual move itself unless they change, as rba does, is what is the commentary like? what are the potential triggers for a slowdown? i think the rba has to be careful not to give away too much because it has the all-important quarterly cpi release that comes later on before the november meeting. they would not want to front run that too much. there will be a lot of tea leaf

reading about what the rba says. how much of a by the have to slow down and reentered that. what might the rba and fed do? there is a strong concern worldwide that the central banks are hiking their way towards a recession. as rba to particular has been more open than its peers about the idea it would really like to avoid that and on the back of the 30 year or so strict we had here was a technical recession, there is some confidence that they can manage to hike rates for enough, tame inflation, but not so far that they create a recession. let us face it, investors and households around the world are hoping that all of our central banks can manage that extremely

difficult task. shery: that is are stories. a market move and central-bank decisions. we are following the u.k. as well. medium-term fiscal plan as they reissue our financial markets about the government's economic strategy. he and liz truss drop their tax cuts for the u.k.'s highest earners to stop a revote in their own party. >> i think it was the wrong thing to do. i think people in government have to listen to the people in the country. let us bring in ross matthews. we have embarked -- we had a

bloomberg reporter earlier today, saying that the water, what does this mean politically for them? >> it is the top tax rate in the u.k.. the other is that they chancellor now says he will cover the forecast for november 23. he will give the idea of how he will be funding some of these proposals which is counting the idea that they are detrimental. the economy more broadly, a real effort and both of these are happening in the tory party conference. it is happening at the moment in the u.k. to be a sure investors and the british investors that the lawmakers are hearing you and we are willing to make

changes if needed in policy. a big criticism in all of this is that the new prime minister and her chancellor surprised many lawmakers with these policy announcements and they had to go out into their electrics and defend their support internally in their party. haidi: she is apparently moving internal support which is petitioning for an immediate election going on. where do we go from here in terms of regaining credibility? even if we are seeing a bit more calm in the market, we are seeing multiyear lows for the currency and a great deal of volatility? >> credibility for her, she can stabilize briefly, having getting off on her footing with

our party and investors. there is a real sense of concern around the longevity of our government. she came in after the conservatives had a government period with boris johnson and ejected him from power. she has come to office with that , she has not been elected in a general election. if you move quickly to remove her you are risking the fundamental peril for the tory party. this helps her for a bit. is it possible to change leaders in that time and regroup enough to win a general election? you see the calls that are coming now, the labour party has 30 points. for better or for worse, they may be stuck with her through election because it is bad for them to be seen to be affecting

her. we are interesting -- it will be interesting to see what will happen over the next couple of months as she stays in power. haidi: let us get you to vonnie quinn. >> the japanese government has issued a warning to residents in some remote islands to take shelter after north korea fired an unidentified missile. the government said the parted tile has passed overhead and landed in the pacific ocean -- the projectile missile has passed overhead and landed in the pacific ocean. bloomberg has learned that the biden administration is announcing a restriction on china's access to american semiconductor technology. it will restrict what technologies can be shipped to china. >> european union countries are

working on a new sanctions package for russia. this is is russian for escalating the war annexing four occupied territories. the remaining page has been agreed -- it has been agreed. member states need to vote on it tuesday. elon musk has been planned are going to negotiate with russia to end the war and sees crimea for good. -- cede crimea for good. the ukrainian president responded with his own twitter pole. global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. haidi: still ahead, and look at fx market moves as the yen trades in your levels, -- trades

in low levels. market inflation is not as substantial as in europe. more on their market outlook next. this is bloomberg. ♪

>> i am totally stumped,

mystified, surprised that fed officials do not seem to acknowledge that it is focusing on the fed funds rate as part of the monetary tightening cycle. it is a mistake when you also have a slowing dollar. these are very restrictive monetary developments. one more rate hike through november and that will be it because of the financial stability issue. shery: the fed rate hike path. before we go to our next guest, a little bit more on the north korean missile. we are getting more details coming from south korean authorities as well. they're saying the north fired a mid range ballistic missile. this was around 7:23 local time. japan will be holding a national security council meeting very soon according to new sources.

we have heard from the cabinet secretary in japan, the missile fell outside of japan's exclusive economic zone. north korea fired only one missile and south korean officials are saying it was a mid range ballistic missile. japan was ahead in warning citizens to take shelter from this ballistic missile launch. returning to our top story, our next guest says growth and the desire for a softer landing will stop the central bank from hiking in like step -- in lockstep with the fed, we have vishnu varathan from mizuho bank bank. let us get started with that call on not hiking in lockstep with the fed. will that mean that asian market currencies well fall against

dollar strength? vishnu: emerging asian currencies have not fallen as much as the major market currencies. the cash down is very real. there could be policies that emerge rather than converge, central banks are worried about the global headwinds. that picture is a more mixed because we think there are also going to be a few other things. it could be very measured, capital controlled, the downward correction, it could be severe. particularly against the further drops in the yen or the developments of eco trigger policymakers to engage with more policy -- developments that

could trigger policymakers to engage with more policy. the direction of trade seems to be towards small weakness. given assigned that headline inflation and the u.s. is peaking in asia. shery: the levels of interest rates and the is shrinking its balance sheet. we had a comment from bridgewater saying that they no longer think that cash is trash anymore. given the rates, cash is mutual and that is very good. what do you say in terms of putting that in the international perspective? look at other currencies as well. how does cache compare? >> i think cash is also going to be very evenly distributed on the international space. the dollar liquidity, this is

one particular risk we are watching closely given the dollar debt. the kind of funds, particularly against a formal constrained cash flow due to high inflation. that will be a different sector. the burn rates of fx results will be a sovereign level. at corporate level, the ability to have revenue cycles and cash comfortably pushing the different detectors as well. haidi: i have to get your views on the current geopolitical developments we are watching at the moment. this mid range ballistic missile being fired by north korea, that has been confirmed by south korea. this has been the official launch in a year. are we under pricing or under appreciating the geopolitical risk in asia given so much of the focus has been on the war in

you? -- ukraine? vishnu: i think geopolitical tensions in asia on many fronts have become a lot more acute. u.s., china, what is going on in north korea. the trouble is i think increasingly either markets are having a higher cash yield or they are not pricing in the pressure. the other is we have opposing actions on the pricing action. i think yields are driven by the fed. whereas there is a sector to drive it back down. it becomes intermittently and getting grounded out at times. these are some of the challenges in the distilled market pricing. such as geopolitics. haidi: we are hearing from the

prime minister speaking in tokyo, condemning the north korean missile launch and repeated north korea missile attacks. we continue to watch this, south korea confirming the mid range ballistic missile was fired from north korea and it flew fast and passed the japanese sky. we see the council meeting schedule for 8:30 a.m. in japan. take a look at the risks for asian more -- asia more broadly. there is a big? about what happens with china as it comes out of the congress. the strength of the u.s. dollar, how much damage has there been in terms of losses and do we see more of a risk of deterioration now? vishnu: one sector we have not paid enough attention to is

the byproduct. a strong dollar also means that you get a lot more currency mismatches. not as severe in asia, but certainly some of the mismatches come through more severely in a time when inflation risks are rising high. inflation is cascading down from the dollar-denominated energy prices. we also get beaten up a lot more. that creates self reinforcing downside in currencies and that is an issue. central banks in the region and certainly for those managing the cash flows, maintaining enough dollar has become a little bit more of a key issue. to steal from the fed, i think

the rational and attention is not due to inflation but it is for asia and not thinking about dollar strength. haidi: it is always great to talk with you, that is the head of market and strategy from mizuho bank bank.

shery: u.s. futures extending games after -- extending gains after we saw a little bit of a dip, after north korea fired missiles. we w 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.

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♪ shery: we have breaking news out of japan that tokyo's court cpi

rose up 2.8% year on year, back on line with estimates for the month of september and accelerating from the previous month. when it comes to the headline it cpi numbers, we are near growth of 2.8%. a slight deceleration from the previous month, but in line with estimates. you take on a fuel, but also energy, it grew to 1.7%, which is a faster acceleration than what economists had expected and also some acceleration from the previous month of august. perhaps not surprising, given that we continue to see higher prices of food, electricity, imported global goods and a weaker yen is making inflation more pronounced. of course, we follow the tokyo cpi because it gives us guidance for national numbers coming up later in the month. now, we are also watching geopolitical tensions around japan. north korea fired a missile over the country for the very first time since 2017.

the japanese government issuing a rare warning to residents in some remote islands to take shelter. bloomberg news managing elder -- editor joins us now from tokyo. we have seen many missile launches from north korea recently. is the trajectory in the path of the missile making it -- this launch more important? >> the fact that this missile flew over japan and appears to went in the pacific ocean is seen as very provocative for the japanese government. any country would not appreciate it missile flying over its own territory. all of the missiles have been fired by north korea in 2017 and they landed on the east side of the country, meaning that at this point, it is different. that is why the alert for residents to seek shelter was issued.

haidi: is this tied with political events that have been happening over the past week or so? kazunori: i would not be surprised if that is the case. we had the u.s. vice president harris in the region, in tokyo, to attend prime minister shinzo abe's funeral. she took a trip over to south korea and visited the demilitarized zone on the 37th parallel. also, you have the u.s. korea joint military drills, where the u.s.'s ronald reagan took part in south korea. all of these things, north korea has criticized and in that way, the events of today that happened have coincided with all of that. haidi: bloomberg news managing editor. let's find out how the markets

are reacting. >> we are watching the defense and peace stocks in japan at the open, about 30 minutes. otherwise, coming online in singapore, you can see the nikkei pointing to a much higher start here. big boost to the exporting names yesterday in the session and the likes of the high tech makers, we will see a broad-based, tracking those gains that we saw on wall street. the nasdaq 200 more than 2% higher and new zealand online. in the green. one market that could be positioning for a rebound to bring up the terminal chart, this is korea. taking a look at the kospi 200 index, that track, the blue-chip stocks are down around 35% from its 2021 hi. this track here is looking at the interest ratio, so essentially that track is seen as outstanding. bearish versus bullish wages. we can see that that is dropped.

we're back to the lowest since april of 2020. you can see it there. perhaps an inflection point but in terms of what else, given that we have bullish sentiment have been impacting the currency space. we are seeing sentiment pulling back a little bit for the dollar index. the yen below that key 145 for third quarter. intervention. bodies currency had been falling a little bit, so we are seeing the aussie and kiwi to trade flat and the pound is a laggard. haidi: our next guest today -- declined considerably in asia, exposing currencies to the potential for further depreciation. let's bring in facia fx editor. -- asia fx editor. i'm sure you been watching these development's when it comes to korea firing a missile over japan for the first time in 2017. a knee-jerk reaction in the yen.

rather curious, given the dollar yen a trade at the moment, how strong is the haven impetus in a situation like this in the japanese yen? >> sure, i think the dollar yen along trade is monetary policy divergence. that is not changed. i think geopolitical risk events like this give some amount of safe haven. what we usually see from markets and i think we are seeing it in korea a number of times is that markets that use to these launches and then they do not have the same impact. so expect very limited if any safe haven for the japanese yen in this particular event. however, there are other things going on in markets which might make the yen a safe haven again. there is definitely some signs of stress appearing in credit markets. the swap markets in particular, credit spreads have been widening. those are the risks.

the yen can act as a safe haven. haidi: where do you see broader vulnerability in emerging asia, in particular? as you say, the dollar strength is drawing down on those buffers. divya: well, look, i think the fundamental backdrop for asia has remained quite a challenge for a while. but what we are seeing now is usually central banks rely on, fx and rate differentials. those have declined quite sharply. on the fx results front, i think central banks are facing a triple whammy. first, obviously, there has been a lot of intervention so the dollar has been used to support the local currency. at the same time, valuations are also having an impact, given the huge rise in the dollar and also at the same time, it is a look

at imports. prices of imports have gone up quite significantly. if you put that together, months of imports for asia and china, marketing close to seven months and more central banks are pressured to keep it above six months. so it comes through from the fx front. similarly on the rate differential, if you look at that u.s. to your nominal on the back of the global financial crisis, i think that is lending to some amount of dollars in the region. there saying one not just go to dollars? the buffers expose some of the asian currencies. shery: that also tells you that we have seen authorities become very active, right? whether it is direct intervention, whether it is -- does that complicate the dollar trade in a sense? divya: absolutely.

i think that is spot on because obviously, official intervention has gone on for some time. but what we are seeing now is macro credentialed measures with in exchange rate dimension. those are getting introduced, for example in korea, we had the bank of korea swap their pension fund to take away the dollar demand. in india, there was a credit line announced for taking away the dollar demand from the spot market. so those pressures certainly continue and that makes things a little bit more complicated for the long dollar trade in asia. shery: and we have also been following the latest from the u.k. and the jump in the british pound, given the backtracking by the government on at some of those tax cuts. at the same time, traders seem to be saying that we will continue to see weakness on a sterling. where do you stand russian mark -- where do you stand? divya: we saw that markets were getting to bearish. but this week, markets are going

in the other direction and perhaps markets are being too optimistic. however, it does not really change to much. we are talking about a country, an economy that has fiscal deficit in excess of 7% of gdp. we are still looking at a central bank which has reserves to defend the currency if needed. at the same time, central banks are hiking into a recession. our economists project next year's growth in the u.k. for the entire year's -0.1%. it is obviously a very difficult macro backdrop for sterling. we're looking at a move to 105 on sterling by the end of the year. shery: divya, fx strategist. let's get to vonnie quinn with the first word headlines. vonnie: chancellor is calling for no more distractions after liz truss reportedly did a

u-turn on plans for top earners. the reversal is likely to send off a rebellion within the ruling conservative party. they will now announce medium-term fiscal plans. to reassure financial markets. >> i think it was a distraction. and i think it was the wrong thing to do. i think we've got to try and listen. people in government have to listen to the country. it is a tough thing to do. it's tough to put your hand up and say this is not the right thing to do there. vonnie: a lawyer has asked a u.s. judge to dismiss a case accusing him of ordering the killing of journalist. the prince numeral -- numeral gives him immunity. names 20 other saudis. the u.s. is going to submit its results.

58 people were killed by hurricane ian. five days after the torrent struck. losses have risen to as much as $57 billion. president biden is scheduled to visit florida on wednesday to survey damage from what he describes as one of the worst storms to ever hit the united states. covid related restrictions are eased when working overseas. according to a staff member you -- memo, staff no longer need to isolate in hotels between the out band and returning flights. dusty out bound and returning fights. global news, 24 hours a day. on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. haidi: rounding up the stories you need to know to get your day going in this edition of daybreak. subscribers can go to dayb .

you can customize settings so you just get the news on the industries and assets that you care about. this is bloomberg. ♪

♪ shery: bloomberg has learned that the biden administration is planning new restrictions on china's access to u.s. semi conductor technology. for more let's bring in our

chief north asian correspondent stephen engle. what do we know at this point? stephen: we do know that these new roles according to sources, the biden administration commerce compartment -- department has not confirmed but these new rules will be announced as early as this week. to essentially strengthen the export restrictions that the united states has on essentially formalizing or codifying these restrictions on advanced semi conductors in areas that china obviously wants to dominate in the world. that is consumer computing and ai and of course, they would like to go up the value chain better than 14 technology chips. so these new rules are going to help strengthen those export restrictions and includes formalizing export restrictions on semi conductors and prohibits the sale of tools for logic and memory chip production in china. it also will restrict access to chips used in supercomputing and artificial intelligence.

the rules last month, i believe it was in early september, essentially, guidelines -- these new guidelines will codify those export restrictions recently imposed on nvidia and amd. nvidia has 95% share of the highest ai accelerator chip market. and amd has the rest, so this does potentially levy a severe blow to china's position in the ai space and other supercomputing areas. shery: how different or tougher are these new rules than what is currently in place? stephen: right now, there is under certain circumstances of course, u.s. chip technology that can be exported to china. in the lower end technologies, lower and i should say the nanometer, essentially under current guidelines, if you have state equipment makers -- the equipment maker's have been

allowed to sell machinery to china or equip some chinese companies with machinery to produce less advanced semi conductors. but what this will likely do is codify or formalize how these export restrictions, the new steps, the technology it will take to make those 14 nanometer chips better. that is key to china's ambitions. prior action, this is going to be levied or announced by the commerce department. previous steps that have been made by members of congress, they have really taken action on national security grounds. this potentially the commerce department would essentially formalize the governing of the export restrictions on advanced technologies. we will have to see -- the proof will be in the putting in the wording of these new rules. it will be interesting to see it later this week if in fact the commerce department does announce that.

shery: stephen engle there. commodities space, wti pulling back from gains. best day since may as we head toward the open class meeting. the final decision comes out on wednesday. investors may be considering whether we are going to see a rush in oil output. meantime, we are watching natural gas futures. of course, we see tensions heightened around the pipeline in europe. but also, we have u.s. natural gas futures under pressure recently, given easing concerns about supply tightness ahead of winter, as we have more presumption coming up. we are seeing coal futures under a little bit of pressure. u.s. factors have $200 worth. this is we have a global energy crunch driving demand for this dirty fossil fuel, cold. it still remains a leading fuel in u.s. power plants. haidi: yeah.

japanese utility in the government have plans but ammonia alongside coal is part of the decarbonization strategy. for more let's bring in japan at market analyst. so why does japan want to pursue this strategy? is it a viable option? >> so one of the benefits of it is to reduce emissions from coal. and that helps them to keep it in the future. that is because ammonia at coal power plants releases co2. shery: what are the biggest challenges in pursuing this strategy? >> so, there are several challenges in the technology. it can be the high cost of the

technology, energy sector risks. omissions. so the concerns about safety and the health issue. in from corporate perspective, research found out that 50% ammonia it would cost at least 136. retrofit running even higher. the ratio of ammonia would be more expensive. so those would be definitely more expensive. and that is why we believe in the deployment of renewables to clean up the power sector, rather than ammonia. and from the energy sector perspective, japan -- yes? isshu: yes? isshu: energy dependence is key. so this strategy will likely

help energy in the future. haidi: are there better applications for clean ammonia? isshu: we believe other implementations in power, production will be better because production does not have much available. i think this is where the ammonia use will be under control. haidi: bloomberg nds market analyst. of course we will continue our markets coverage. be sure to tune into bloomberg radio to hear more from the daybreak team, broadcasting live from her studio in hong kong. listen to the app, bloomberg plus or bloombergradio.com. plenty more ahead. ♪

♪ shery: we're counting down to the start of trade in tokyo and seoul. some of the stories we are watching, in japan, the government is holding a national security council meeting following are three is missile launch. it issued a missile alert for some islands. asking residents to take shelter. inflation in tokyo also for the fourth consecutive month, rising to the fastest pace since 1992. the growth was led by gains in processed food. we are watching the monetary base on the average for the first time since 2012.

over in south korea, we are watching north korea's missile launch. north korea's military says it was a mid ballistic missile. the national assembly beginning its national three-week audit of state run agencies are also on wash for the -- on watch for the monthly auto data. haidi: a quick check of the latest business flash headlines. the judge in a court case has decided to delay the former ceo elizabeth hunt. to review the testimony of a key witness. they've argued that is of a new trial after rosa dorf tried to speak with her about the testimony. reality show star in osborne or kim kardashian will pay almost 1.3 million dollars to settle allegations that she allegedly had with cryptocurrency. according to the sec, she

promoted a crypto asset which she allegedly -- paid $250,000 to do so. bloomberg has learned that hikes are planned for the three biggest hedge funds as high as 40%. that will make them among the most expensive in the industry. starting in july, the increase would be the second since 2019. top pay for top talent. shery: women watching the trade open in korea and japan. korea's neighbor, shopping platform posh mark has been acquired. the japanese department stores have reported 20% in gains year on year, so those are some of the stocks that we will be watching. we will also be watching shares after japan sees the north

korean missile pass overhead. coming up in the next hour, we will get some investment strategies from chow. why she is getting more into the market. u.k.'s george brandis joins us live to give us his insights on the uk's controversial tax policy reversal. the market opens in its and tokyo are next. this is bloomberg. ♪

>> this is "daybreak asia", we are counting down to asia's major market open as we watch for any reaction to the geopolitical tensions by north korea as we saw them firing over japan a midrange ballistic missile for the first time in five years. haidi: just a reminder that with all of the focus on the war in ukraine, the energy crisis across europe and globally, there -- it is a stark reminder of the geopolitical and national security risks in our part of the work -- world as well. all of this coming on rba decision day, a reminder that federal bank policy is still dominating the narrative. annabelle: absolutely. we are counting down to the open for japan and korea and what we will see from treasury, because that was the big watcher in the u.s. particularly what we saw in the five-year yields dropped more than 30 basis points, coming

online, looking like this. but really, this was down to weaker economic data that came out, also some liquidity conditions that are looking pretty tight as well. but it was something that also prompted the u.s. stock to do their best start in october, one of the best since 1930. so a lot of traders are really starting to pivot on just how aggressive the fed will need to be. but that sets up a risk on mood and asia. the nikkei is coming online at 1.6% to the upside. the yen looking like this below that key 145 level. we are watching closely for that. let's turn to korea. as you said at the top of the day we are still keeping an eye on what we see in terms of geopolitical risks that could be the key factor of the sentiments. watching for further reactions that we do get from north korea firing a ballistic missile over japan for the first time since 2017 that it has taken that path . we are looking risk on throughout the session. particularly what we see in

options pricing, the kospi two hundred index at the bottom of the screen up around 1.7%. that's down 35% from its peak in 2021. there have been options that we could be at the bottom for that market. but let's turn to the australian trading session. we still are one hour into this. seeing some gains here, also keeping an eye on what we see in 10 year yields for the aussie bond. it is moving based on what we saw in treasuries. interesting, we are coming into the rba decision day, perhaps this drop we are seeing in yields could make it easier for the rba to guide for smaller moves higher moving forward. also keeping an eye on what we see with brent crude coming online. it is looking steady after that massive spike yesterday. shery: let's bring in our next guest, the financial advisor and managing director at ubs. good to have you with us. of course we are talking about geopolitical tensions around north korea. we do have the rba rate decision

today. what are the key drivers for the market in the short term for you? >> i think the short-term, we are still neutral on u.s. equities, global equities, we are maintaining caution in the markets. i think in the key drivers in the next three or four months, just being cautious and seeing where inflation numbers are going to be, if the job markets are still going to be this strong because this fed has long stressed that any type of rate movements where rate hikes is going to be dependent on inflation and the job market. so we are going to be sitting pretty close to the sidelines and just kind of seeing where those numbers are going to be. shery: the appeal of global stocks, dividend yield over trade or yields, this chart on the bloomberg has really turned negative and at as -- at an 11 year low. is that why you are or neutral

when it comes to global equity? xi: that is one of the reasons but there is a lot of uncertainty still going towards the end of this year, not just the fed, but also -- a lot of it will be driven by the fed and where rates are going to be, but also geopolitical tensions, ukraine, that's causing a lot of volatility in the commodity market and in various markets. the recession, that's going to happen here in the u.k.. china is also not coming back as fast as we are hoping. there is just a lot of uncertainty out there, so the are neutral on equities and not rushing getting into the market. haidi: two we set ourselves up for further disappointment going into earnings? because there is uncertainty when it comes to guidance. xi: that's a good point. we expect quarter three earnings, the risk of credit markets rising as primary

markets collapsed. so we also see a lot of volatility coming for emerging-market equities, those earnings are not going to be as good as well. with that said, again, that's the reason why we are still very neutral on equities. haidi: what does your strategy look like if you are neutral on equities, if there's a great deal of, lack of clarity going into the coming months. what is the catalyst to become more confident? xi: that's a great question. right now we are maintaining our market position. if clients are invested in the markets, we have been trimming down on growth and tech all year long. we are staying invested -- we are not cashing out of the markets, that if there is any cash on the sidelines, we are not going into the markets. treasury yields on the lower end are very high. so, we are basically going to

focus more on value, more on energy, more on health care and i think as the markets get a little bit better, when we can have more stable inflation numbers, seeing those numbers go down, better job situations in the u.s., and the fed can finally, maybe see some of the hikes, or at least eventually rates start coming back down a little bit, that's when we could feel more comfortable going back and's the market if there is any on the sidelines. haidi: one of the key drivers could potentially be what we get if we get some policy outcome from the party congress. do you have any expectations or wish lists on what we might see? >> we hope that there is going to be more certain see on the policy, but this is all the

fairy -- it's very uncertain out there, so we hope that with probably -- hopefully with better inflation numbers that are better job numbers, with the life hikes in the market and earnings can get more back on track, and then we could get back into the equity market. >> we also saw a u-turn when it came to the u.k. government in a little bit of support for sterling, given that they are scrapping some of those tax cuts. where you expecting in terms of the economy being u.k. in europe, and the implications for asian markets? >> i think u.k. and also eurozone is also going into a recession in the next six or 12 months. and also, with ukraine war, that is still ongoing, and we don't see any stability in that area.

that will cause a lot of volatility in the commodity and energy markets. asia test china's recovery is a lot slower than we anticipated. if somehow, if china comes out of this pandemic -- as china comes out of this pandemic, the economy can pick up and china, that might be a good way, a good situation for the development of a, hopefully that will lead a little bit of growth back into the global economy. >> is their way to play the volatility in the commodity space that you talk about? >> certainly, commodity is -- in the near term it will be very volatile, so it's high in demand, there is a shortage of supply right now. so probably in the near term so volatile, but if you are going to get into commodities, it will probably be a longer-term play. again, we still want to focus on the overall diversified portfolio and not in any one sector at this point, and mainly

stay pretty cautious, foe's stash focusing more on value, on more quality and remain invested in the markets until there is more dependent data that we can see and see as macro economy gets better. >> always great to have you with us, financial advisor and managing director. some of the movers given the heavy national security focus the top this morning. >> that's right, we did see japan saying that north korea has fired its first ballistic missile over the country for the first time since 2017. certainly quite a momentous event. in terms of reaction we are looking at the stocks this morning. of course this is the first intermediate range or a longest range missile that north korea has fired since at least may and the likes of the u.s., japan, south korea all warning that there could be further

provocations to come. the defense stocks, the quick check on the peace ones. we are still seeing those moving higher. if you just change on the board to take a look at those. essentially i'm just taking a look at what we see on the topics this morning and every single sect are in the green. and what we see in the risk on move, but also changing to look at japan's department stores quickly because we did get the sales data out, most of the major retailers are seeing a rise of sales on the year around 20% or more. jeffrey's saying some of that is down to the relaxation and travel restrictions, and of course, japan has been very clear about wanting to get the most advantage from a weaker yen. >> let's get to vonnie quinn with the first word headlines. >> the u.k. counselor is promising more and more distractions after he and prime mr. liz truss were forced into a u-turn on that's a cut taxes for top earners. it was causing a rebellion.

they will now in ounces fiscal plan sooner than november in a bid to reassure financial markets. >> i think it was a distraction, and i think i was the wrong thing to do. i think we've got to try. and people in government have to listen to people in the country. it's a tough thing to do. it's a tough thing to put your hand up and say this isn't the right thing. vonnie: bloomberg learned that the biden administration is planning to announce new restrictions on china's access to semiconductor technology. the commerce department will roll out a package rule to find out which semiconductor technologies can be afforded to china. under current guidelines the u.s. chipmaker would be under certain circumstances. european union countries are edging closer to a deal on a new sanctions package for russia. they face pressure to punish

russia to escalate its wearing ukraine and annexing for occupied territories. the remaining hitch has been agreed and details of the price cap of russia's oil sales. never state still needs to formally approve the deal. that could happen as early as tuesday. officials in florida now say 58 were killed by hurricane ian as it still mounts five days after the storm struck. in short losses have risen to as much as 57 billion dollars. president biden is scheduled to visit florida on wednesday for what he describes as one of the worst storms to ever hit the u.s. 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. haidi: members of liz truss cabinet say the prime minister will struggle to lineup the course for her economic plan after the turmoil of the tax cuts. we get more from the commissioner to london.

next, japan tells residents to take shelter as north korea fires the cells over the country in a dramatic escalation of tensions. we get the latest for you just ahead. this is bloomberg. ♪

shery: north korea has ratcheted out regional tensions firing a missile over japan for the first time since 2017. it prompted the japanese government to issue a rear warning to residents in some remote islands to take shelter. the tokyo deputy chief joins us now with the latest. it seems significant, and now that we have seen so many north korean missile launches recently, but the trajectory is what caught our eye. >> absolutely, this is certainly an escalation on the first time in five years that a north korean missile has actually flown over the japanese mainland into the pacific ocean. the government issuing that alert, wanting people to take shelter in heavy concrete buildings or underground. and only the northern part of japan was affected by that alert, that here in tokyo, all of our tv's went black with that

alert flashing. and we heard from government spokespeople condemning this launch, of all ballistic missile launches by north korea being a breach of un security council. this one in particular, south korean authorities have come out and said they believe it to be in intimate -- intermediate range ballistic missile, not the icbms that would put the u.s. and their sites, but increasingly diversity of different missiles in different trajectories being tested by north korea very recently. haidi: does this likely reignite debates over japan's national security and defense capabilities, whether the deterrence strategy is going to be enough? sophie: north korea is definitely on the top of the radar here in japan where the administration leading on from is to predecessors shinzo abe that have been increases to defense budget, and talk of

increasing japan's investment to technology. a north korean missile doesn't appear to have any attempts to shoo one down today. but defense is definitely on the top of the agenda. japan talks with the u.s. and the u.s. ally south korea. that's where the u.s. vice president harris was visiting just in the past couple of weeks, and it has certainly been something that has prompted the launches. to increase in frequency we have also seen u.s. ronald weick -- ronald reagan in the region. the nuclear power carrier there for draws with south korea. in terms of participation with japan defense force, they are only four defense that set up in japan's constitution. it even within the bounds of that constitution, defense spending can be increased. even though they armed ukraine and russia's invasion of ukraine, there is still the opportunity for further sanctions on north korea at the

international community will cooperate. it's more likely japan will focus on urging that condemnation by the international community, but japan's defense is certainly in the background. shery: we are looking ahead to the cabinet secretary now do to speak at any time. but i just wonder where the conversation is going at this point, given that the priorities globally seem to have hit it, especially with the ongoing war in ukraine. sophie: absolutely. china and russia, both permanent members of the security council, did vito in may this year, a potential resolution for more sanctions on north korea for its recent escalation of launches in this region. so that is very much there in the west of this eurasian continent. for japan is been working very closely with the biden administration and the defense and economic security also, so japan does have that influence

their. in south korea as well. this is certainly an escalation that will catch the eye of the international community. what could come next could potentially be another test of a continental ballistic missile or buzz about the possibility of a nuclear test for the first time in many years. that would be a severe provocation and pretty much a departure from the state of quarrel. the are waiting to see what reaction we might get from the international community. markets are a little muted today on this missile launch this morning, but a missile test certainly would be quite shocking. so we will see in the coming weeks if anything happens of this thought. haidi: let's get you a check of the latest business flash headlines. credit suisse plunges into the market fresh turmoil over the ceos attempt to reinsure investors backfiring. the friday memo had a dramatic move in the stock price and

credit suisse. the cost to ensure that debt jumped with the highest ever. shares with fresh record lows. google has -- after china ending one of the services is operating in the world's biggest internet market. the company representative said it will continue to show uses. they pulled the main search engines from china in 2010 over government censorship. chinese carmaker has a company sells maker for electric and hybrid vehicles. it sold over 200,000 units in september for the first time. beating tesla for deliveries in the first quarter. and with a 180 7% increase year on year. shery: rba expected to lift the cash rate i have -- by 100%. new zealand is expected to do the same on wednesday. our preview is next. this is bloomberg. ♪

haidi: the bank of australia is expected to lift the cash rate by another 50 basis point in its meeting. but this could be the last of the outside rate hikes and its tightening cycle. paul allen joins us with more. we could see an increase. it's ready to get things a little bit softer. paul: it's very much a live debate. we had economists expecting 50 basis points, bringing back their expectation of this meeting to 25 and others were saying 25 and are now paying 50. very much a live debate in terms of what we get. but a majority of economists we get the 50 basis point rise

today. some of the uncertainties come from phil lowe himself who said to parliament that both 50 and 25 are on the table at this meeting. our bloomberg economics is going towards a 25 sites and some of the inflationary pressures of food, energy, housing construction was being transitory. i know that's a bit of a dirty word these days, but we still use it. also, the 225 basis points we have seen so far is still feeding through the economy and could have those significant impacts on house prices and mortgage stretch and we have already seen some evidence of that coming through. likely 50 today, but going forward with a increases for the rest of the year could be 25. shery: could that be the case for our bms then meets tomorrow? paul: it has been a little more hawkish this tightening cycle. out of 22 economists see the rbn lifting rates by 50 basis points as well on wednesday, but the

part that had another 50 place -- another 50 basis points expected in november, as some expect to see the cash rate at 4.5 percent of the time 2023 rolls around. at the pressures that new zealand is facing is very familiar. the kiwi dollar remains weak and the fed is continuing to tighten even more aggressively, this is making imports more expensive. labor markets and new zealand are very tight in new zealand is experiencing the same stresses in the housing markets as australia is. the governor is also suggesting that maybe through this error of supersonic rate hikes could be coming to an end. he says the tightening cycle is not very mature and will advance, and some of the price pressures, such as energy costs are starting to receive a little. haidi: paul allen and sydney. let's look at the aussie dollar. going into the rba decision. did have some pretty strong terms of trade and it comes to

the aussie, but the aussie has really been impacted by the stronger u.s. dollar, sitting just above 65 u.s. tens. the question really is whether it can kind about run the euro dollar pay trading for that downward path there, going through september, but seeing a little bit sapphic at the moment. we are watching the kiwi dollar going into the rbn fed decision. in the benchmark it is an update, a sigh of relief as we see some green across the board. nikkei 225 is one of the gainers up by 2%. strong gains out of the kospi. watching the defense related stuff. we are seeing a bit of upside despite these geopolitical concerns. midrange missiles being fired by north korea over japan, the first since 2017, among the uncertainty created. really it was that weak manufacturing data from the u.s. that has been getting better about fed expectations. shery: that's why we saw that

s&p 500 seeing the best day since july. most s&p 500 members rising u.s. futures accelerating those gains throughout the asian session. and really soothing concerns that the fed will over tighten, perhaps really giving the booze. look at european futures as well. stocks coming from energy companies rallying, given that opec-plus seems to be mulling a bigger production because. we have the drop in u.s. bond spurring risk appetite. we are seeing oil prices above $83 a barrel. this is bloomberg. ♪

haidi: getting some data crossing the bloomberg as we await the rba decision on whether we see 25 or 50 basis points. is this the last of the outsized move. we are looking at jobs when it comes australia month on month for september we see a contraction of just about .5%. also watching loan value numbers coming through, pretty big contraption there coming through of close. building approvals, this is a blockbuster gain of over 20%. 28 .1% for the month of august versus the expectations of 10% in the bloomberg survey and back from the 17 point 2% contraction that we saw in the previous month. we have seen consecutive months of home values falling here in australia in one of the concerns were the rba going into did -- going into today's decision and be on is seeing that hit to the demand side taking hold when it comes to household wealth and how much that is really tied in

with property values here. shery: it seems we are seeing the hit to the demand-side and south korea. manufacturing pmi falling to the lowest since july 2020, and another third month of these pmi numbers of s&p global manufacturing gaining contractionary territory for the month of september. perhaps not surprising for south korea given that semiconductor output in august also fell for the first time in more than four years. of course they are a global powerhouse when it comes to semis, but really doesn't bode well for the global picture given that the trade bellwether we have seen, global manufacturing under pressure as well. turn to annabelle for another check of the markets. what are you seeing? annabelle: even with the negative sentiment coming through, we are still risk on in asia today. look at what we see in equity spaces, green across the screen, being led higher by what we see for the nikkei and 2%, australian asx 200. a lot of that down to what we

see in the treasury space. we saw big moves led by the five-year treasury and the previous session. down to the weaker than expected economic data coming through in the manufacturing side, but also exacerbated by tight liquidity conditions. a lot of traders tear their bets on just how aggressive the fed will need to be. watching the shorter durations this morning. also particularly interesting, we have the rba decision coming up in our markets live team pointing out that with the full end yields that could make it easier for central bankers in australia to guide for a slower path of rate hikes. intensive currency space, pretty muted moves as the korean won is one of the standouts. decline in. a little bit down to the jeep -- geopolitical risks. we did see north korea firing a ballistic missile over japan. as the first time it has taken that path since 2017. if you bring out the terminal chart, speaking of that risk

there, geopolitics at a time when a lot of attention focused on what's happening in grain. but as they pile up, you got what's going on there. in asia, geopolitical risks between china and the u.s. and the u.k. with the political crises, banking crises going on with credit suisse. certainly things are just piling up. we are back to levels now on their market risk monitor, bank of america since the start of the pandemic. but you are taking a look at credit suisse. shery: given the market uncertainty will go so high given by what happened with credit suisse on the magic rise -- with the embattled bank, bloomberg su keenan joins us with the latest. last week's ceo's memo is backfiring. su: he said we would come out with a turnaround plan. concern in the market has fallen to a new low late last week. so it comes down with a friday

memo, don't worry, basically, although he could see the bank was in a critical moment, in a plunged 12% in europe before flying its way back, as you could see on the far right hand side of their craft. you are looking at this swiss chart. in the u.s. it actually managed to get into the green by the end of the session. as many analysts and one prominent hedge fund manager came in and said, let's stop with the fear mongering. but if you look at this chart in front of you, you can see where the fear mongering comes from going back two years. it was scandal after scandal and green phil and arce goes that because billions of dollars of losses for the bank in exodus and top level officials and caused all because of the markets to question recent days of the market if the bank might survive. in addition to members of the staff, bloomberg learned the talking points were sent to executives to help deal with clients who brought up the credit defraud swap. here's the bloomberg graphic. they put in the swaps, or cvs

spiking to levels not seen since the great financial crisis, as you see in that circled area. it stands for great financial crisis. and that cause even greater concern in the market to look closely at what this means, analysts will say, what we are seeing currently, yes, there is a deterioration, clearly, but what they tell us is there is a 23% chance within five years. in other words, it's not imminent by any means. and that may explain why, -- connor has prevailed at the end of the market, particularly in the u.s. were we managed to see the stock in the nonetheless, this kind of crazy ride really communicates the market is telling credit suisse they have a lot fewer options in terms of how they get this thing together. haidi: how did we see analysts

managing to restore prices? what are we in store for as we get to the open in europe? su: in terms of restoring confidence, it does help that several analysts and citibank focused on what the ceo was really trying to say. that the bank does have a capital, it does have liquidity, it is strong right now and has the ability and the near term to get -- and analyst said this might be able right here. but if you look at all the various major concerning points in front of us, the one on the far right came plunging in the stock in the spiking and the credit default swap is really what seem to ground the market. in a lot of historical comparisons were made between morgan stanley and deutsche bank. some analysts pointed out these

survive the great financial crisis. so again, the comparison when you drill down to the actual structural detail are not that ideal, and it doesn't necessarily mean that credit suisse is in trouble in that regard, collapse. in terms of how they were structured, it is the end of october, the ceo says he will be out with this major strategy for bringing the bank back in. and involves putting the bloomberg sources, selling off a lot of different units, a lot of analysts saying they do not have, even with the potential sales, the 4 billion it will take the put -- to put the bank back on the road to recovery, so that is limiting the options as they tried to come out with this formal plan. let's see how it opens in europe and the next few hours. back to you. haidi: bloomberg su keenan, let's get you to vonnie quinn. vonnie: heidi, thank you.

the japanese government issued a rare warning to residents and remote islands to take shelter after north korea fired a missile over its territory for the first time since 2017. south korea says it was a medium-range ballistic missile. japan says the projectile splashed down in waters to the country's ease. last week north korea launched seven missiles, the biggest barrage. investors welcomed their first round of presidential voters. they have the biggest one-day jump in more than four years while the stock encz mark surged the most since april of 2020. investors are betting they may need to prioritize more markets for the policies before the second round vote at the end of the month. elon musk has joined them after a series of tweets calling for ukraine to negotiate with russia to end the war and sees crimea for good. asking citizens whether they

want to live in ukraine or russia. ukraine's resident responded with his own twitter bowl asking if you would prefer elon musk who supports ukraine or one who backs moscow. a lawyer for saudi crown prince mohammed bin salman asked the judge to dismiss a case accusing him of ordering the killing of jamal khashoggi. the lawyer argues the new role of prime minister gives them legal immunity now. the complaint was filed by the fiance in october 2020 and names 20 other saudi's. u.s. has asked for more times to submit its response. global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. shery: we go live to a press conference by japan's cabinet secretary talking about the north korean missile launch whose saying that the threat is not only to japan, but also to the rest of the world. that is very problematic to launch a missile without warning that japan has used the

strongest warning possible in a protest to north korea. now he is speaking in tokyo right now after north korea fired a missile over japan for the very first time since 2017. it appears to have splashed down in water to the east of japan according to the japanese government. he had earlier broadcast a notice to the japanese public that the missile was headed towards the northern part of the country. haidi: we will get you more details as they get to us, but coming up, what is next for liz truss following the government stout -- policy reversal. we are joined with the take next. this is bloomberg. ♪

>> our great plan set out 10 days ago would ensure an focus relentlessly on economic growth. we make note of the fact that for too long our economy has not grown enough. more jobs, higher pay, more money for public services. because we cannot have a strong nhs without a stronger economy. and even in the face of extreme volatility in global markets with major currencies wrestling

an incredibly strong u.s. dollar and longer-term trends from demographic change in climate change, we will show that our planned -- plan is sound, that it is credible, and that it will increase growth. you will have a strong fiscal anchor with that falling as a percentage in proportion of gdp over the medium term. that is the conservative way. conference, i am unashamedly a pro business conservative. haidi: u.k. chancellor they're defending his fiscal plan says stop act tracking on a promise to deliver tax cut for the countries top earners. u.k. cabinet members have toned bloomberg that prime mr. liz truss would struggle for key parts of her economic plan less than a month into her premiership. prime ministers believe that it is already irreparably damaged. the former australian high

commissioner to the united kingdom joins us now. professor, really a pleasure to have you with us. i'm very interested to get your insight into this difficult, challenging situation for the prime minister, with to three years until the next election. we have petitions for an immediate election, we're hearing she's losing support within her own party, how do you restore credibility, is that possible? >> i think there's a great risk of over interpreting what has happened in the united kingdom, so let me try to put this in clear context. the government of prime minister truss has very decisively opted for a low strategy to grow the -- the economy and one of the -- key places that growth strategy with significant tax cuts. the package that the chancellor announced was a package of 45 billion pounds of tax cuts, most of it at the lower end of the

income scale. that proportion of the tax package that was to go to high income earners, was only 2 billion of the 45 billion pound of tax cuts. and as a result of a very bad reaction to the perception that the will to -- wealthy were being favored by this package was that to not proceed with the reduction -- rejection of the top right when 45% went to 40%. but that is a small part of the overall tax package. as you said in your intro, it's nearly two years since the next election, and i think it is way too soon -- some of the commentary that is somehow a mortal blow in the early days to prime minister truss's

government is ludicrously premature. this is a plan that was designed to operate across the medium to long-term, which may be over the next one to two years and beyond. so an adjustment to the plan, which in turn is an actual aggregate size, is a relatively small adjustment as a result of the political optics, essentially. i think it is not going to, in the long run, have anything at all to do with the efficacy of the planet of all. haidi: the problem is that this comes at a time of extremely -- extreme area economic challenges for the u.k., is not an easing situation liz truss has found herself in in terms of the energy crisis in to the soaring administration and the economic crisis looking very dire. what can they do, where can the

cuts come from? we know that the fiscal responsibility side is going to come with painful cuts that are not going to be popular. george: there will be cuts, but as the chancellor said in the grab you ran just before, what the government is betting on his economic growth, which will, as a result of the greater prosperity, will, in the long run, reduce the debt. this is a growth strategy. it is at the heart and core of the package that the chancellor announced 10 days ago. i think political commentators have been so excited on one relatively small, and fiscal terms, relatively small -- that is the reduction now on the top right attacks, that they have missed the fact that most all, the plan, but the overwhelming

large parts of the plan designed to cap text for middle and low income and other benefits as well, including abandoning for a national insurance levy. and we are in place. shery: the reason the critics have been focusing on the small part of the packages is because we have seen huge market reactions and the uncertainty in the selloffs of u.k. assets, how do you regain the credibility coming from investors who are looking at this country? george: i'm sure that was one of the factors that fell into the thinking of the chancellor and the prime minister when they decided to reverse that part of the plan that reduce the top right attack. in the market seemed to have settled down. so, the point i am making to you is, a, we have to see the

broader context here. and, b, that these decisions will be judged in the medium to long-term and short-term reaction is not ultimately the political or of the market criteria of the market to be judged. shery: we understand that you are a very close, personal friend to prime minister truss, have you spoken to her since this plan was announced and what sort of advice would you give her on how to move forward? george: that's slightly out of six, my relationship with prime minister truss. i do know her quite well. i knew her as the commissioner and the united kingdom. i haven't spoken to her since the day she was elected leader of the conservative party a few weeks ago, and i wouldn't presume to give her advice. i know them both well. he is one of the smartest people

in british politics. one of the smartest people who have been a member of the house of commons for a very long time. in liz truss is a conviction politician. both of them share core tory conservative pallet -- conservative party values about slimming down the size of the state, giving people more freedom, including more freedom through the tax system to spend the money in their own way, rather than contribute to the size of government. and they will be guided by those values and the decision. >> thank you very much for your time, former australian high commissioner to the u.k. and current professor in the practice of national security. coming up next, we talk about our sales and how they are surging to a fresh record. this is bloomberg. ♪

shery: the judge in the theranos fraud case has decided to delay the sentencing of the former ceo elizabeth holmes, she wants to review the testimony of a key witness for the governor, former theranos lab director. holmes has argued she deserves a new trial after he allegedly showed up at her home in august trying to speak with her about his testimony.

reality show star and entrepreneur kim kardashian will pay 1.3 million dollars to settle allegations that she illegally touted a crypto security. according to the fcc, kardashian used social media to promote a crypto asset security offered, but she allegedly failed to disclose to paying $250,000 to do so. bloomberg has learned -- is planning hikes for its three biggest hedge finds to as high as 40% that would make the firm's funds among the most expensive in the industry. sources say the performance for the three funds by five percentage points starting in july. the increase would be the second since 2019 and help pay to retain talent. google has shut down this translate after china, and being one of the few remaining services the u.s. giant still operated in the world's biggest

internet market. the company representative said it continues to low usage. google calls the main search engine from china in 2010 over government censorship. chinese carmaker byd has now shot a seven consecutive monthly sales market for electric vehicles. it sold over 200,000 units in september, for the first time comfortably beating tesla for delivery in the third quarter. that was a 180 7% increase year on year. craigslist take a look at the state of play when it comes to the rally we are seeing across asia gaining after. this will be gained to the u.s. session overnight, a surgeon treasury. we have the manufacturing data really calming these nerves about a more hawkish federal reserve, and more aggressive fed rate hike being tampered down, we are seeing some pretty

healthy gains when it comes to the nikkei 225. korean stocks also seen some gains. trading in yesterday session. all of this despite a great deal of political risk without north korean midrange missile being flown over japan for the first time since 2017. and also, watching gains when it comes to australia, he little bit of softness still when it comes to the aussie dollar going into the -- going into the rba decision. >> we see gains after the s&p 500 saw the best day in july, and that really positive wrist sentiment is translating into asian assets. that's it from "daybreak asia". our markets coverage continues. bloomberg markets china open is next. this is bloomberg. ♪

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