>> you are watching "daybreak asia," coming to from new york, sydney, and hong kong. >> counting down to the opens in tokyo and seoul. >> australia has just, online. a global stocks rally set to continue. treasuries also rallying on hopes the fed may rethink its aggressive tightening. avoiding a costly legal battle and sending the social media giant shares surging and opec-plus considers an output cut of as much as 2 million barrels per day with washington. shery: we start with cpi numbers out of south korea. the inflation for consumer prices year on year in the growth of 5.6% for the month of september. this is slightly below what economists had expected and a little bit of easing from the previous month. the month on month number is

also below expectations coming out at growth of .3%. still, acceleration from the previous month perhaps a given that oil prices have rebounded slightly from the month of august. take out those energy prices and you get the core cpi numbers year on year as growth, 4.5%, which is exceeding estimates. playing into these numbers, high oil prices. rising consumer demand perhaps given that korea has eased covid restrictions but really -- what will happen next week when the bank of korea needs. they have been raising rates since last summer and now, with inflation still at highs we have not seen in more than two decades year on year, the bok will have to consider the implications of prices. what do you see in the markets? annabelle: we are all about central-bank moves. you spoke about korean it inflation expectation. the boj could pivot or hike by

50 basis points next week but certainly, this is the overarching theme across the market space. we are -- a lot of anticipation building that we could see central banks turning less hawkish and the rba was one of the ones to keep this up yesterday with a 25 basis point hike which was not productive by most economists who had been expecting the fifth straight half-point move. we saw that big rally from wall street so positive in here. we have seen the asx 200 higher for a second session at the start of trade, tracking moves we are seeing in bond yields this morning. the three year dropped by the most in 14 years. look across the border landscape. quibi stocks trading to the upside. chicago nikkei futures little bit more negative but they did close previously in positive territory so expecting the market to open higher.

we did see the dollar retreating. the kiwi dollar looking a little bit more sanguine so a lot of expectation around the rbnz decision later. will they follow what they had from the rba? shery: if they don't, a hawkish surprise. we will be watching that very closely as we have treasuries continuing to rally after the rba's dovish surprise as well. two year yield below 4% for the first time since mid-september or so. the u.s. futures at the moment under a little bit of pressure that after the s&p 500 just had its best two day surge since april of 2020. nasdaq futures are under pressure and oil prices also under pressure. they surged at opec-plus. output cut of 2 million barrels per day. still about the $86 a barrel though. this of course all to do with

investors hoping the central banks might the fed and rbnz shift to a slower pace of tightening and that really is fueling investor optimism in the market. this follows the rba's smaller than expected 25 basis point rate hike. our global economics and policy editor, kathleen hays, is here with the latest. despite investors optimism and expectation that the fed might have it, that is not the rhetoric coming out from officials. >> that is a hope that does not seem to be based on listening to the fed closely or watching the data. we want the fed to pivot. we want them to be done and let stocks rally again. the fed does not support that in the least, this idea that there is any pivot coming anytime soon. philip jefferson joined in may and when he talked today, he was pledging for the fed to keep up the inflation fight, and restoring price stability might

take some time. it will entail a period of below trend growth, hoping for a soft landing but keeping the door open to recession. we will bring inflation down to 2%. mary daly speaking in new york city. she is president of the san francisco fed. she was once -- seemed like a dyed in the world of. hawkish train herself the last several months and when she spoke, she did not talk about where they are with the terminal rate or the neutral rate is to talk about what inflation means to real people, to real businesses. >> every day, i hear the suffering people tell me they are going through. it's on the inflation side. if we let it go, it is a corrosive disease, a toxin that erodes the purchasing power of people. kathleen: just yesterday, john williams, president of the new york fed, said he is the number three guy at the fed.

she said policy is not yet restrictive. we are looking at how high we have to push rates, not how soon we will start hiking them yet. jobs this friday, cpi report on friday will shed another light on this. if the fed doesn't do 75 basis points, they revert back to 50 with financial instability in so many parts of the world and may be signaling a softer path but in terms of pivot, stopping rates, no way. not right now. >> will they be taking cues from the dovish pivot or the fed's hawkish talk? kathleen: we know that adrian or said just last week that the policy path now is very mature, well advanced. i think we are going to be looking for any hints he gives about where they are in the cycle and if they are getting closer to being able to start pausing, slowing this down.

a 50 basis point hike by the rbnz to 3.5%. it would be the fifth 50 basis point hike in a row. the implied cash rate by next year is around 4.7%. that is where a lot of economists are seeing it as well. inflation, that is what they are fighting. 7.3% in the second quarter. the target is one percent to 3%, the fastest in 32 years. they are back near a record low. two thirds of new zealand businesses expect to raise prices in the fourth quarter. expectation for cpi the next year, 6%. the biggest thing i should say is on the other of the coin is house prices. how quickly have they fallen after rising 41% over the 19 months through march? home prices have been down six months in a row in august in the third quarter. that is near a record low.

we are waiting for the policy statement. no pressure. monetary policy review meeting. not the kind where they are going to do good at the press conference and more information. what are the clues? they are looking for inflation and the economy and do we get any sense they might be ready to slow down at the next meeting like the rba? haidi: global economics and policy editor kathleen hays there. investors have to take advantage of the broader downward moves and equity markets because their territory is where the most money is made paid let's bring in the founder, ceo, and cio of colombo wealth management. you get the sense that bond bulls are yearning for that upside. the reason to bargain hunt -- is now the time? to extrapolate that to broader central banks? >> it's actually not the time. the key thing to understand is

that the earnings estimate for 2023, by wall street analysts in the u.s. market, they have to come down. when you think about the time, the average drawdown is 30%. in 2008 and 2009, we saw -- you have this big dichotomy. when he think about all the pressures going on with the fed raising rates, consumer demand slowing, estimates have to come down. if they come down by 20%, talking about a multiple. that is still in your treasury or one year treasury. it is risk reward. you have to be patient. long-term investors take advantage of buying rate indices. haidi: is this an example of some of the businesses you are looking at now? phil: it comes with free cash flow.

they are very interested in that. an example of that today would be -- it is down in price against other pharmaceutical businesses. overall, we know that pfizer is a stable business. great free cash flow, great balance sheet, great product pipeline, great networks, and will prosper over the next three years to five years. that is a great example. another great example would be financials his 6% of their revenue comes from the automotive business, for financing. they are down in price for obvious reasons. people stop buying cars -- it is trading at a market cap of $9 billion to buy back to billion dollars worth of stock. incredible business that will go down when the economy suffers but ultimately, that is another

example of a great business. another example of the financial sector is the bank of america. great exposure. cash flow is pretty tremendous. great leadership. everybody, all investors are concerned about the financial sector and the banks. any type of situations are going to happen. when you have situations like this, opportunities come. >> is that bear market bargain-hunting the reason you say you like gold? we have seen significant downside already. phil: the story around gold is more about the dollar strengthening because of trade and that has been going on. the best place to be around the world. typically, when inflation accelerates, gold does as well. that was this case as well. as inflation starts to decelerate is what i'm thinking is going to occur over the next 12 months, the dollar will start to decelerate.

on the downturn, you are seeing gold. there will be in outperformance. >> we are seeing a lot of volatility in the markets right now. is there a way to play that? liquidity seems to be exacerbating those price moves. phil: with volatility, the place to be has been cash. we raised cash in 2021 and the beginning of 2022. to reduce some of the risk involved, we have been investing in cash right now and taking advantage like i said before as we are in the bear market and we will leave things will get worse. we put money to work in good quality businesses as long-term investors so that is how we are taking advantage of the volatility. shery: good to have you with us, phil palumbo. still ahead, as opec-plus considers slashing oil production by the most in 2020, we speak with a guest who says

more output cuts would be shortsighted. elon musk makes a surprise you turned revive in his twitter takeover bid. more on the reaction, next. this is bloomberg. ♪

>> this is "daybreak asia." i vonnie quinn with the first word headlines. the impact on global supplier could be smaller. delegates say they may discuss a cut plus smaller reduction when it meets later on wednesday. numbers are already pumping far below their official quotas meaning they won't have to curb production even as limits are cut. thailand is battling some of its worst flooding in years with large areas of farmland inundated by seasonal storms. 100 60,000 hectares of agricultural land have been affected and some 80,000 homes damaged across 72 provinces. it is putting upward pressure on food prices and household debt and hindering tourism recovery. more heavy rain is forecast in the coming weeks. donald trump is speaking -- seeking supreme court intervention in the fight over government papers seized at his mar-a-lago home. he asked a special master to

review 100 documents of classified markings. the justice department is determining whether he illegally seized records when he left office. the u.k. government says -- northern ireland trade arrangements and weeks. james clyburn ling told the conservative party conference that if the tone -- the tone of discussions has improved. many sticking points remain. 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: take a look at after hours trading for twitter and tesla. we are seeing a little bit of a bounceback for twitter shares after hours. we have seen a little bit of pressure earlier in the asian session but this after jumping 22% on elon musk revising the $44 billion bid for the social

media giant. tesla was gaining ground in the new york session given the broad risk-on sentiment but we are seeing the downside after hours. su keenan joins us with the latest on this. why the change of heart after spending a fortune, lawyers and trying to get out of this? su: court kate -- su: court cases cost a ton. elon musk was two weeks away from beginning this court case in delaware and was sent to be deposed later this week. a lot of legal experts say it appears likely that this is a move to avoid all of that which may have been embarrassing, and likely his legal team told him that he would not work could not win in the actual trial because all of the rulings hereto for, it had been each side trying to put out against each other, all the rulings seem to go against them. shery mentioned the after-hours movement.

look at the way twitter stocks just took off on this news. one legal expert says this is the most expected outcome on the eve of a trial about to be deposed. although here, it isn't really -- elon musk is taking everything back to square one, opposing the original deal, going forward. as we said, shares have soared as bloomberg reported this and then elon musk files a letter with the fcc which confirmed all of this. he had tried to back out of the deal in july. you can see that the stock had been steadily dropping during all of this drama but after the news, elon musk wanted to go forward and you turn. the stock shot up once again and that closed the gap between the offer price and the actual stock.

it is still a significant premium. >> getting on twitter. just a few minutes ago, elon musk talking about how this is the accelerant to creating and everything app. what happens now, sophie? su: twitter has acknowledged receipt of the letter. they said they intend to close on the deal. they have been saying that all along. it is not going to lose the deposition date. nothing legal has happened right now. he made the deal and then backed out of it, forcing the lawsuit. you can see why one money manager told bloomberg that these two sides not only trust each other, they hate each other. it is widely viewed that twitter will seek what is called a consent judgment to the court,

making his proposal to close the deal with the court. if elon musk were to back out in some way again, it would be a violation of a court order. the judge has asked both sides to come back with a proposal as to how to proceed and that's going to be anticipated. the deal is and always has been contingent on financing musk securing debt. the terms of the original 12.5 billion financing package remain the same, put together by a group of banks like morgan stanley. what's different are the market conditions. this could create a headache for wall street banks. billions of dollars in buyout debt. they committed to that in better times such as when musk originally put this deal together. a lot of pieces are still to come together but it is a major change by musk himself. >> the drama continues then.

su keenan with the latest. you can get a roundup of all of the stories you need to go in today's edition of daybreak. also available in the bloomberg anywhere app. you can customize your settings so you only get the news on industries and assets you care about. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. ray dalio has given up control of bridgewater associates. on september 30, he transferred all of his voting rights to the board of directors and tapped down as one of bridgewater's's investment officers. $150 billion in assets to a younger generation of leaders. hsbc is exploring the sale of

its canadian unit. it is the latest move to streamline. to spin off its asian operations. hsbc says the review is at an early stage and no decisions have been made. it accounts for 4% of hsbc's pretax profits. bloomberg intelligence says the sale could fetch $10 billion. they plan to invest $100 billion over the next 20 years to build a memory chip factory in upstate new york. the company says it will get about $5.5 billion in state government incentives which will generate about 50,000 jobs. it comes as the u.s. boosts incentives to reduce its reliance on asian chip suppliers. in bs antitrust body has approved the merger of z entertainment and a group under certain conditions. the company's earlier concessions included independent advertising verticals. the merger creates a behemoth

valued at $10 billion. take a look at the state of play when it comes to the effects side of things. we have had a brief pullback when it comes to dollar strength. that dip in the dollar field by hopes of aggressive monetary policy tightening from major central banks including the fed, sparked by the supplies to the downside, by the rba. a lot of analysts saying this is a wag the dog moment, a lot of profit-taking after that record high rally last week but we are seeing upside when it comes to the aussie dollar, still sitting above 65 u.s. cents. the kiwi dollar seeing a bit of strength going into the rbnz but of course, so much pressure on the q. week coming from the aggressive said. the weakness coming to a 6.3% decline the previous month. at one point, we saw the kiwi hit a 13 year low and that will be a point of contention for the rbnz in terms of potentially making inflation more of a

problem by making imports more expensive. watching dollar-yen as well, not really doing very much. yen volatility hitting a three-month amid the ongoing intervention risks as well. at one week implied volatility falling to the lowest since the end of june and watching dollar china sitting above seven. coming up, markets hoping -- expected rate decision. broader central bank hawkish nest. a lot of colonists and wall street analysts -- time for the fed. take a look at the bar that has take a- [announcer] imagine has been having fuller, thicker,

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word headlines. elon musk revived his bid to buy twitter at the original price of $54 and $.20 a share. it avoids a pretentious for -- contentious fight. he made the proposal in the letter to twitter on monday according to a filing with the sec. shares climbed 22% in the new york session after the news. it stands ready to use all measures to keep the financial system stable as russia's invasion of ukraine undermines the energy supplies. the financial services commissioner spoke after meeting commissioners to discuss the situation. the bloc will be careful to prevent any spillover from energy and security. >> every finance minister, and i add my voice to this as well, are saying whatever we do, we want to make sure that nothing will allow the energy difficulties to flow into financial instability issues, whatever measures we take will be cognizant of the importance

of financial stability here in the european union. >> they cover their biggest quarterly loss on record. new zealand says the 4.1% quarterly decline is second only to the record drop in the wake of the global financial crisis 14 years ago. prices in auckland fell 4%. in wellington -- president biden has reassured fumio kishida of the commitment the u.s. has to defend its ally after north korea fired a missile over japan. they condemned the first missile launch over japan in five years. biden and kishida say they will also work with south korea on a longer-term response. 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: we are about half an hour away from the opens in japan and south korea.

annabelle, how are we setting up? annabelle: we are looking to go into a second day of gains paid we already have the asx half an hour into trading here and you can see that reflected with a pretty big tailwind coming into the session even though you can see futures are little bit weaker but phil, we have the best two day rally for u.s. stocks in more than two years. a lot of that down to this expectation that some investors have that central bank's could be nearing the end of their tightening cycle and that was reinforced yesterday by the rba because we have that basis point move seen by a handful of economists because most of them had been expecting a half-point hike for the fifth straight meeting. the rbnz meets later today. the other part of this story of the rally here is also what we were seeing in terms of the rsi is so most of these markets at oversold conditions coming into the rally so some strategists saying the pessimism really had

reached such extreme levels that i bounce was just a question of when it would happen but phil, the thing that is very important is not to get caught up into thinking that the market bottom is here. it could be but we could be in another bull market or trap rather. we are still in a bear market and this could be another relief rally and this idea really based around a fed pivot perhaps is not near at all because if you bring up this eco-u.s. function here, we can take a look. these are all of the fed speakers that are coming up over the coming day. we already heard from mary daly earlier speaking at the council on foreign relations. she basically called inflation a corrosive disease that is eroding income. it really does paint this picture that fed officials are still very much focused on bringing in inflation. if you look at the other people speaking, certainly a lot of fed officials likely to reinforce this message.

haidi: these latest signs of weakness in the u.s. economy could be a sign that fed officials are starting to get what they want as they battle inflation. let's take a look at where that bar may sit for any kind of pivot to a less aggressive tightening path. our opinion editor is here. if we go back to the fact that the fed wants to see inflation coming down, it will not be enough. it is wishful thinking for marcus to think we are near peak hawkish nest. >> look, what we can say is that we are probably closer to the end of tightening than the beginning and what the rba did yesterday was that surprised smaller cut, which markets took note of it also, broader speaking, policymakers. we don't see that very often but

having said that, look, the bhat is still higher for a fed pivot. there has been a string of said policy makers coming out and sounding resolute that they need to get inflation down, that they are not backing away anytime soon, that there is still a long way to go. to tame inflation in the u.s., and they have late -- they have been late with strong words. mary daly is saying inflation is a corrosive disease. what the rba has done, it has put momentum behind the debate about whether we have peaked but look, in terms of the fed, not likely to be there yet in terms of a pivot. it is worth adding that would 50 basis points be a pivot?

probably not. >> you mentioned the rba and it seems especially true that we should not be extrapolating too much from that move given that australia, in most of the country, we are seeing the variable rates as opposed to here in the u.s., where you have a fixed rate so really, those loans are more powerful. what is the risk of over tightening policy given that policy acts with a lag? andreea: the risk of over tightening is absolutely great. when you have the united nations coming out and warning about the aggressive tightening we have seen around the world, the risk is definitely great and we are seeing that play out in the markets. they have been very unsettled. we have seen turbulence. aggressive tightening could plunge the global economy into a recession. coming on the back of covid,

russian invasion. the risks are absolutely great. particularly so for emerging markets. you have an incredibly strong dollar and that poses the problem for capital outflows, imported inflation, borrowing debt. the risks are definitely great. they are still out there. but what we have seen is perhaps debate about a peak coming more to the front, something that is just going to -- something we will keep seeing now. >> when it comes to what we are seeing from the markets, and i know you looked at this in a lot more depth, it seems to just be a case of wishful thinking. andreea: look, the markets have been incredibly turbulent as we have heard before.

investors were negative to such a huge degree that perhaps to some extent, it was not surprising that following the rba yesterday, you did see that rally in stocks and bonds but i do think you need to see a lot more other central banks perhaps bringing down their increases. we have the rbnz today and that is going to be really interesting to watch and their guidance, whether they will see a slowdown in tightening. you will need to see a lot more than just the rba down under before we can say that, you know, that this rally that we have seen has got legs, but look, in the meantime, given how negative investors have been, given the cash that we know is out there on the sidelines, it is not surprising that anything

that seemed positive for risk assets, you know, you are going to see these bounces given the selloff. early days yet. >> you can turn to your bloomberg for more on that rbnz decision later. go to tliv to get commentary and analysis from bloomberg's expert editors. coming up next, as opec and its allies consider cutting crude output by as much as 2 million barrels per day, our best sees the upside to the oil price rally limited to $90 per barrel in the short-term. we will get more views from her just ahead. this is bloomberg. ♪

>> every finance minister, and i add my voice to this as well, think whatever we do, we want to make sure that nothing will allow the energy difficulties to flow into financial instability issues. whatever measures we take, we will be cognizant of the importance of financial stability here in the european union. >> the european commissioner for a financial stability speaking to bloomberg television. take a look at the commodities

space. surging in new york trading which is under a little bit of pressure in the asian session. this of course after we saw signs of exhaustion, the recent selloff we have seen in the broader commodity rally as well in trading on wall street. european nasdaq was under pressure because we have seen some concerns about shortages in winter. wti in the asian session holding at around $83 per barrel. brent rallied. we have seen crude rallying on wall street as well as we heard opec-plus was considering an output cut as much as 2 million barrels a day. our next guest says opec-plus is likely ready to shift market psychology. let's bring in the senior commodities strategist and broker at a trading company. good to have you with us. 2 million barrels a day and this would be double what we had

previously anticipated. is this just about market psychology or will it actually make a dent on supplies and could potentially impact prices? >> at this point in time, i think it is more of a psychological strategy as opposed to actually pulling barrels off the market. they don't want to encourage producers to pick up production and take market share. they also don't want to encourage the consumers finding substitutes so i think that they will probably stick to something closer to half a million or even one million. even that is probably just a token because they are not meeting their quotas as it is already. the $10 rally we have seen started as an opec story but what it really is, the underlying force is more of a correlation story. we are seeing the stockmarket rally higher, treasuries rally higher, pushing interest rates lower, and the u.s. dollar is reverting and that is what is pushing crude oil higher in the

short run. we might have a little further to go but i think we are setting up for a situation. i would not be shocked if the oil turnaround is somewhere in the low 90's and back into a downtrend as we have been seeing in the last several months. >> is that also because they are working against seasonal trends? carley: crude oil has a really hard time rallying beyond mid-october so we still have a week or two of trend left. as we get later into the month, it will be harder for oil to lose gains. the bottom generally does not occur until late january or early february so there's definitely seasonal pressures working against opec in this situation. >> you talk about low 90's as being the ceiling but in a worst-case scenario, where could we see prices headed? carley: if i am wrong, -- it has been known to happen -- we break

the 90's and we could easily see 115 again. in any case, any type a rally to those levels would be temporary. the thing about commodities is they don't go up all the time like stocks do. they trading ranges. they are volatile and the rallies can be spectacular but big rallies are generally a sustainable and i think that will prove true with crude oil. we are seeing central banks raising interest rates. we have yet to see what that is actually going to do to the economy so even if the supply side of the equation is tight, the demand side of the equation may not be as bullish as some of the market participants want to price in. haidi: the other thing you are talking about, anything is possible when it comes to trading in broader commodities. how do you view with the demand disruption, the elements of china, all of these factors right now in terms of what the trajectory looks like? carley: it's obviously chaotic

and things change quickly so i'm focusing more on trader positioning and the chart. most of the bullish speculators have liquidated their positions but they are still holding rather sizable positions. net speculators positions -- cftc tells us there is net long positions in the market and this is the lowest we have seen in several years. 300,000 is -- it leaves room for continued liquidation so i think what might happen is that is likely a lot of people caught on the wrong track of this move -- wrong side of this move. this probably people who are going to look at rallies and selling opportunities to cut their losses or to basically take the other side of the trade to so i think any rally is going to be short-lived for positioning and from a fundamental standpoint, sometimes in the short run,

fundamentals have little impact on what the market pricing actually does. in the long run, it matters. in the short run, it doesn't and that is what we are going into here. shery: carley garner, great to have you with us. let's take a look at the dollar and hope less aggressive tightening is weighing on the dollar. let's bring our senior rates reporter. hope is the operative term. they kind of talk about this as being a wag the dog moment for the dollar. >> absolutely. let's take a look at the bloomberg dollar index gauge and that has declined 3% from reaching an all-time high last week but it's dangerous to write it off completely. strike this from the bank of commerce. investors are taking profit on the dollar right now but that

move could soon vanish and they inspect the federal reserve and other central banks wanting to follow dovish steps in australia on tuesday so in other words, there's plenty of room for the dollar to run particularly against currencies like the yen which as we all know has been suffering from the policy divergence story. >> suffice it to say that central banks, peak hawkish and us has been priced in. whether it is the fed, ecb, or boe, they dropped their projections for rates through 2023. how long is this sentiment going to mass given there is still potential for the dollar to run? carley: -- >> if you look at not just currencies but across bonds and stocks, the optimism is showing signs of weakness in the u.s. economy pushing the fed to

aggressive monetary policy and the rba moves for example as well into a more dovish place sooner than expected. it's the time to fall back a little bit, start pulling money into emerging-market currencies. all we need is, you know, a flareup in the energy crisis, deepening energy crisis in europe or we could see another -- and the dollar will get bid once again. the fed is making firefighting inflation its number one priority. and until they are satisfied that inflation is under control, they will keep hiking rates and if that continues, there will always be a bid for the dollar. haidi: our senior reporter for fx and rates, ruth carson. we have much more to come on "daybreak asia." this is bloomberg. ♪

>> a logistics giant has seen huge revenue growth driven by a surge in e-commerce join the pandemic. the company has significantly improved cash flow in six years under the guidance of the cfo, on the latest edition of -- tells tom mackenzie how she made this happen. >> one of my priorities has been to really focus innovation on

better cash generation. it is not just a finance job. making sure that revenue converts into cash is the responsibility of the whole organization. >> cannot be successful as a company if we are not connecting the services we have provided. she has not missed one opportunity to talk about that. >> it is a comfortable situation , particularly in the current environment, to have a strong balance sheet. i would rather have a bit more on the balance sheet. tom: spell out for us what the longer term priorities are in terms of putting some of that cash to use? >> organic growth and our capex budget, investing into organic growth. we are focused on our regular dividend payments and then if there is something left, as is

unfortunately the case at the moment, we will think about inorganic opportunities and other means to allow our shareholders to participate. that is why we are running they share buyback program. >> you can catch the full edition of bloomberg's chief future officer featuring melanie at 7:30 p.m. on thursday in hong kong. it is the end an era for they ray dalio -- it's the end of an era for ray dalio, giving up control of bridgewater associates, retaining a position on the board and the role of mentor in terms of what his title will be going forward. he started the search for successes way back in 2010 and thinking it would take maybe a couple of years. it obviously took a lot longer than that. at the moment, it seems like things are in place and i have to say, he is leaving on a higher note given the funds that

managers did not do well in the early stages of the pandemic. the numbers have been a bit better lately. shery: 12 years in the making, projecting an aura of contentment and relaying a sense of relief. really, it's not just him that struggled to lead the way for succession. we have seen blackstone still having its 75-year-old as ceo. carlyle group also with the cofounder just recently stepping back but we continue to watch the lines of succession for all of these wall street giants had here is a quick check of the latest business flash headlines. credit suisse struggling to hold departures from its private bank in hong kong with more recent resignations amid the turmoil for swiss mentors. a managing director, two directors, and two relationship amateurs have resigned recently.

the bank is due to unveil a review on october 27. blizzard was hit with a cyber attack, causing widescale conductivity and should join its -- videogame. it is six years since the first game came out. coming up in the next hour, how investors can seek bigger opportunities next year plus we will be looking into the geopolitics of semiconductors with eurasia group. the market opens in seoul and tokyo are. this is bloomberg. ♪

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shery: "daybreak: asia," we are counting down to asia's major market opens as the world are asked of the rbc dovish stance. investors pricing in the peacock patient from central banks. we will see what the rbnz does next. haidi: we have to reframe expectations, because you get the feeling this is wishful thinking or bond goals, equity goals, we know the fed wants inflation to come down more meaningfully. let's see how we are setting up before the open. annabelle: we are positioning for a move higher in the markets in japan and south korea and are tracking bond is at the start of trading. cash treasuring coming online, the 10-year yield looking still well-off the 4% level last week.

a lot of optimism building. that the fed won't need to be as aggressive as expected. we are keeping an eye on market opens on what that means for the direction of the open. the dollar index retreating in the previous session and the yen retreating this morning, below the 144 level. after 145, started intervention watch earlier this week. stocks coming on to the upside. also coming off oversold levels. that is the other side of the equation, that pessimism reached such extreme levels in the markets that the timing of the bounced was a matter of when. look at the open we have for korea this morning. we did see big moves in tech in the u.s., treasury yields also laying into optimism that one of the biggest headwinds facing that industry group could be receding. nasdaq futures looking weaker. we see the index jumping be

present in the previous session. the kospi is up 1.7% at the start of trade. also keeping an eye on on the direction of the korean yuan, we did see south korean inflation data this morning. the headline, the side that the impacts of policy tightening are starting to weigh on demand. we are one hour from trading in the asx 200, keeping an eye on the 10-year yield, still retreating this morning after the rba yesterday hiked 25 basis points for the rbnz is the next test. the kiwi dollar is looking flat. opec-plus is mulling a bigger production cut. haidi: our next guest says the biggest investment opportunities over the next year will come in areas hit hardest by the strongest dollar. helen zhu is the cio in managing director of nan fung trinity. after the pullback in the dollar, a lot of analysts are saying this could just be property -- profit-taking after

a record high in the bloomberg index last week. is there pain ahead? it seems too early to call for a pivoting fed policy. helen: it is too early to say there was going to be a pipit. maybe a pivot by the end of this year, beginning of next year. but even if the fed doesn't pivot, there are chances the dollar may have already peaked or could be peaking. first, if you look at other central bank policies, whether it is the pboc, boj, other central banks, they are sent to defend the currency's aggressively because of concerns about instability and out those. second, when you look at the dollar come the fed has to think about whether the fed is pivoting because inflation is well under control, and we are in positive territory? that is not the case. there is a perception that we have a global slow down. if it is a global slow down, i

would say that the market over time will react negatively and people will start to fear a u.s. slowdown rather than fed tightening and that's kind of dollar weakness is less positive for the global market. haidi: if we see the stabilization in currencies, let's be fair, the advantage that a lot of open trading economies are getting in asia from weaker economies can't be overstated, but pboc is getting data in that situation. helen: normally, it is the emerging-market currencies that are most pressured by the stronger dollar. but this year, a number of emerging-market currencies have held up ok, mainly because of a very strong commodities price. those are areas, commodities are areas i am not as positive about wing into next year. but none commodities may have a better opportunity and within asia, that would include a live

domestic consumption-related economy in southeast asia, plus north asia under a lot of pressure because of the u.s. dollar this year as well. this year going into next year, maybe north asia has a better chance and we have or catalyst in north asia like the china reopening, and any kind of further stimulus in china, which historically would have been pricing at this point but has not been because of geo covid policy. and we see more proactive moves in japan as well. at some point over the next six to 12 months, the cycle will start to return and that will favor taiwan and korea as well. shery: when will that happen? because we saw semiconductors taking a beating and korean output has taken a fall for the first time in four years. i thought this could be more downside pressure for korea and taiwan. helen: economic pressure and share price action are not necessarily the same thing.

i think economic pressure from the dollar may be peaking fairly soon. in terms of share prices and so on, that depends on two things -- earnings and valuation. on the valuation front, the interest rates might go up a little bit because even if the 10-year doesn't go up, inflation expectations might correct in coming months and that is negative for share prices. from a fundamental perspective, normally in this art of the cycle, they may bottom. but this might be because of frontloading of demand, and supply shocks during covid so, that might take longer for some of the actual asp's and real yields start to reflect. probably will be later than usual in this part of the cycle. shery: how much will china help the demand picture? because you mentioned markets are priced in some sort of policy action coming from china with covid restrictions easing especially, but we haven't seen that. now that we are hurting into the party congress, could we see more tangible action from

policymakers? helen: the party congress will really focus on the five-year, 10-year and longer-term objectives. we don't expect to see small, covid-specific policies announced at the congress. but we see very clearly there is a policy inflection and they need to be more proactive in terms of cutting mortgage rates, the policy -- the property sector, fiscal projects in terms of infrastructure, tax cuts to incentivize purchasing of autos and other sectors, so the policy has inflected. it has not been priced in, which would have been already of policy had not been so proactive as we have seen in prior -- prior cycles. the reason it is not priced in this time is because, with covid zero policies in place, people worry all the other policies will be unable to have effect. the key thing is whether in the

three to six months after the congress, that we start to see minor changes in the right direction in terms of loosening not to abandon covid-zero policy altogether, but just at least shout there is an intention to support overall economic growth, that there is balance and not just a singular objective. we recently, beijing announced its of over the weekend, a good sign. shery: would you say this is a good time to get yen, given you same thing seven been priced in yet? especially in some of the sectors policymakers want to support, renewables, maybe even the tech sector, seeing more upside given the crackdown we have seen recently. helen: it depends on whether you are talking about internet or hard tech. for internet, probably the policy is moving towards more green lights. for tech specific to china's own

semiconductor industry, i was still avoid that area because of all the negatives coming from that u.s. geopolitically. for example, banning exports of certain semiconductor equipment to china. those could be negative or a large part of the ecosystem, so i would avoid those. but specifically because geopolitical risks are so uncertain, china needs to go out of its way to support the parts of its economy that it can control domestic consumption and so forth. -- control, domestic consumption and so forth. from a medium-term perspective, the risk-reward for china right now is good looking into next year. haidi: how do you feel about corporate guidance going into the next earnings season? do any need to come down? helen: in the u.s., earnings definitely have to come down. we are starting to see many

consumer-related cuts and we will see more tech dots, probably in the third quarter as well as fourth-quarter guidance. just a lot more uncertainty versus before. housing has already been hit. i think any capital markets -related financials will see bigger hits in the third quarter. in asia and particularly china, earnings have been so much already and people are not giving as much guidance because of the uncertainty around covid policy. i would say less negative, but still room to cut in the u.s.. shery: helen zhu, good to have you with us, nan fung trinity managing director in cio. let's get vonnie quinn. vonnie: opec is considering a reduction of production of as much as two million barrels a day. the impact on supply could be smaller. the group may gust a reduction when it meets wednesday. several members are already pumping far below official

quotas, meaning they want up to curb production even if limits are ordered. the u.s. says it stands to use all measures to keep ukraine stable. the you financial services commissioner spoke after eating with finance ministers in luxembourg to discuss the situation. we were told the bloc will be careful spillover -- to prevent spillover from energy. >> every finance minister is saying, whatever we do, we want to make sure that nothing will allow the energy difficulty to flow into financial instability issues. whatever measures will be cognizant of the importance of financial stability in the european union. vonnie: donald trump seeking supreme court intervention in the fight over classified papers seized from his home. the justice department is

investigating whether trump illegally took government records when he left office. elon musk has revived his bid to bike lecture at the original price of $4.20 a share. the move backtracks his efforts to clip the deal and avoid a board room fight. according to bloomberg, elon musk made the proposal and a letter to twitter on monday according to a filing with the sec. twitter shares rose 22% on the news. 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'm vonnie quinn. this is bloomberg. ♪ shery: are we seeing any thing from the voc -- from the story she just told us about on twitter? haidi: you have to put it into perspective. we did see the nasdaq index jumping 3%. but when you look at moves in the social media giants in the u.s., the likes of pinterest, snap, they were well beyond percent. perhaps there is an outsized

impact that the twitter deal is having. so far this morning, saying gains that you can see at the bottom for kai kyle corporation -- four kakao corporation. tech is broadly higher today. let's look at energy. opec plus production cuts could be 2 million barrels a day. energy stocks are also higher at the start of trade. haidi: coming up, we talked to eurasia group about washington's approach to china and reports the biden administration planes and restrictions on access to u.s. chip technology. but first, the rbnz says it will propose raising rates for half a percentage point. how long the central bank will need to stay on that path. this is bloomberg. ♪

shery: investors are hoping central banks shift to slower tightening following the rba's smaller than expected, 25 basis point rate hike. our global policy and economics editor kathleen hays joins us, perhaps this is wishful thinking given rhetoric from the fed?

kathleen absolutely of the rhetoric has not changed. philip jefferson joined the board of governors of the fed in may and gave his first, official policy tightening speech today saying the fed will be resolute. restoring price stability will take time and will likely entail low-trend wrote. i guess he is expecting a soft landing or even a recession. he says it will bring inflation back out to 2%. mary daly spoke today had been a resolute dove and is definitely in a more hawkish camp. today, she talked about something very important to her and other fed officials -- the pain inflation causes to regular people. >> right now, the pain that i here every day, the suffering that people tell me they are going through, is on the inflation side. it is a corrosive disease. it a roads the real purchasing power of people. kathleen: we spoke to mary daly

in august. she said the idea of the fed pushing rates up and ringing them down, no. rates are going up medical to stay up until we see inflation coming down sustainably. john williams, president of the new york fed, spoke yesterday. he said policy is not restricted yet, but it still has a ways to go. when you look at what the markets are pricing in, a couple of more aggressive rate hikes, looks like they are expecting 75 in november and 50 in december, then getting smaller and maybe even starting after the first quarter to reduce rates. but if you listen to mary daly, not likely come of the fed is not going to start reducing rates. it isn't enough for inflation to peak or for other central banks to do smaller rate hikes. they may slow down and do 25 basis point rate hikes next year , and then they will stop hiking. i don't know if it is going to be enough for the market bulls. we expect bond yields to come

down, stocks rallying sounds like a possibility, but the fed for now is a long ways to go. haidi: we get the wind taken out of the sales of the stock bulls and bond bulls read are they taking a cue from the rba or the fed? kathleen: what we heard from adrian or, governor of the bank of new zealand, was that the rate of policy tightening is advanced. it is very mature. but he is expecting the fifth 50-basis point rate hike in a row, this central bank has been out in front of other central banks on they are expecting another one. it will be a terminal rate in terms of what the swaps market is looking for, 4.7%. the rbnz getting a more hawkish message here.

inflation is at seven point 3% year-over-year in the second quarter, the fastest rate in 32 years come away about the 1%-3% target. the jobless rate is 3.2 percent, near a record low. that is a tight labor market. two thirds of new zealand businesses in a survey is this week -- in a survey this week set they expect to raise prices. adriana war -- adrian orr has no press conference this time around. this is going to be important to the markets, especially if they do 50 is expected and don't follow the rba footsteps. one more thing. it is tough to be dovish when the fed is getting ready to do another 75 basis point hike. that is nothing adrian orr and his colleagues are thinking about today. haidi: kathleen hays bringing us down to earth. get more of that reality check on your bloomberg, more on the

rbnz decision later, commentary and analysis from our team of experts. shery: coming up, elon musk back at the twitter deal table after legal drama. next. this is bloomberg. ♪

♪ shery: here is a look at twitter and tesla after elon musk revived his $44 billion deal for the social media company. twitter finished unchanged after jumping 22% in the new york session. bloomberg's su keenan joins us. why the change of heart by elon musk? su: it looks like his legal team told him it would be very

difficult to begin the case that would begin in two weeks in delaware. depositions were set to begin later this week for mosque. twitter exacts at already been deposed. text -- twitter executives had already been deposed. there were text messages that mosque would have to explain, including one from his ex-wife that he should make twitter more political. those are the kinds of things perhaps he did not even want to deal with. so, we go back to square one. he wants to put the deal back on, pay the original offer of $42 billion. he is proposing the original $54 20 cents per share proposal to go forward. and as before, it is all contingent on him getting financing. bloomberg reported the deal, the stark that the stock started taking off and then mosque filed the proposal. -- and then musk -- then

elon musk filed the proposal. the stock rocketed. ed there is a smaller gap indicating that now, -- and there is a smaller gap indicating that now, wall street is expecting the deal to go through. in tweets, elon musk is embracing the deal, saying this is paving the way and he wants twitter to be a more useful device. he also seeks to make it more like we chat, the popular messaging app in china. haidi: the only thing we know about elon musk is that anything can happen. is there still volatility ahead for shareholders? su: likely more volatility and more drama and the buyout is not

a done deal. twitter did acknowledge it received elon musk's letter and said it intends to close the deal. but it has been stating that from the beginning when elon musk first offered to buy twitter and there was a lot of excitement. he then reneged on that offer, or tried to get out of it. that is why one money manager is telling bloomberg that the two parties absolutely hate each other. that is according to the money manager. legal experts say it is unlikely twitter will remove the court date or undo the depositions set for this week. they will likely ask the court to issue a consent judgment. this makes any deal that would go forward a deal not only between twitter and musk, but with the court itself. so, any chance to walk away would be a violation of the court order. you are looking at mu's debt

commitments. hesk now has to go back to a group of banks led by morgan stanley to get the $12.5 billion financing moving. this creates a headache for banks because they can dacians on this kind of debt have changed. haidi: bloomberg's su keenan. let's check business flash headlines. ray dalio gives up control of edgewater associate, the firm he built into the world's largest hedge fund. on september 30, he transferred his voting rights of the board of directors. the billionaire cofounder is entrusting the firm's future and $160 billion in assets younger generation. 120 billion dollars is expected to be invested over the next 20 years to build a chip factory in new york. the company says it will got government incentives for the plant which would generate

50,000 jobs. this comes as the u.s. makes moves to reduce reliance on asian chip suppliers. nvidia exploring sale of its canadian unit, working to streamlined calls by its largest shareholder to spin off asian operations. hsbc says no decision has been made, discussions are in the early stages. get a for 4% of hsbc profit. shery: asian stocks, following the wall street lead come arising for a second session we have plenty more to come. that second session. we have plenty more to come. 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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with no line activation fees or term contracts. saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. ™ shery: japan pmi numbers surprising to the upside for the

final figure for september, coming in at 52.2. the composite number also surprising to the upside at 51. both in expansionary territory. haidi: we are also waiting for the numbers when it comes to singapore's pmi as well. we're really watching this as a gauge of leading indicator of how much the global headwinds are impacting global trade exposed economy. we will get you those numbers as we get them. in the meantime let's get to hong kong for a look at the markets. annabelle: we are moving into a second straight day of gains. in the equity space we are being led higher by asx 200. it does follow this mood in markets that perhaps we are seeing investors starting to price an end or nearing an end for the tightening cycle.

that was a move kicked off by the rba yesterday when they hiked by 25 basis points instead of 50, which had been the major expectation. so we are seeing that also moving into the fx space this morning because it did lead to a dollar retreat. we are seeing some currency is moving hollier -- moving higher against the greenback including the korean won. inflation numbers also picking up because we saw a slowdown in the headline number earlier this morning. that indicates the b.o.k. policy is started to take effect, but it complicates things because the b.o.k. was expected to hike by 50 basis points. in the bond space as well, tracking those moves we saw in treasuries this morning, this idea that we could be nearing the end of a slowing of central bank tightening, but still, investors urging caution in the markets. there's still a lot of headwinds facing global economies, and a lot of strategists say we are not near the peak of rates for the fed, the ble, the ecb.

oil markets certainly reflecting that because we are seeing brent crude higher this morning. the big headline out of this is opec-plus could be mulling a doubling of production cuts. earlier this week one million barrels of day, that is now set to double perhaps. the question of the day, can opec-plus production cuts revive oil's rally? that also asks the question because a big reaction and targets have little impact on supply siding. haidi: we do get singapore pmi crossing the bloomberg. a pretty good number as a whole, the index rising compared to a year ago. when it comes to output in particular, that rose to above 60 from 58. new orders looking particularly good. the highest reading since series began rising versus the prior month. all of this as a leading indicator pretty positive, given

we saw factory falling. sing dollar is been appreciating to a strong level after we saw that drop in treasury yields. shery: right. traders also watching today's opec-plus meeting where ministers will discuss potentially the biggest oil output cut in two years. let's bring in andrew jean. how significant would a 2 million -- 2 million barrels a day cut bait? andrew: that is a big cut. delegates a couple days ago were talking about one million barrels a day and now apparently doubling that. there has obviously been a change of thinking there. this is may be reflective of the fact that major economies are heading for recession and the outlook is not looking good. the other point to knowing -- to note is the saudis don't seem to

be too concerned about retaining the u.s., because it is hard to overstate the amount a biden administration is focused on keeping gasoline prices low. and the timing of this is also particularly bad given you have the midterm elections in november. already we have had reports that white house officials are possibly trying to revive an idea about limiting u.s. exports of refined products like gasoline and diesel. that is a really controversial idea because it is unclear if that would lower prices at the pump in the u.s. and it also risks really angering the u.s.'s european allies. yeah, a two million barrel per day cap would have big ramifications both for the market and politically. haidi: there is a real tight rope being walked in terms of

demand destruction versus revenue. going forward, how much volatility do you see in the markets, particularly do they have enough dry powder to deal with a situation where we might actually get a global recession? andrew: yeah. so, there's a few big uncertainties that they have at the moment. the major thing is the covid zero policy in china. there is some speculation that at the national party congress later this month, that may start to be relaxed. no one is really expecting it to be done away with, but perhaps a gradual using of that which would improve demand in china, the biggest crude importer. the other thing to note with this potential cut is the market impact may be blunted a bit by

the fact that quite a few opec members are not actually producing to levels that they are supposed to be at the moment. they have actually struggled to ramp up production. a 2 million barrel cap on paper may not be as big as that in effect. but there is a lot of uncertainty with what is going to happen with the demand situation. people have been talking about potentially $100 oil next year. others are less bullish. but it is really unclear because we do not know the severities of the slowdowns or recessions we are going to see. haidi: andrew janes there. let's get you to vonnie quinn with the first word headlines. vonnie: president biden has reassure the japanese prime minister of the ironclad commitment the u.s. has to defend its ally after north korea fired a missile over japan. the leader spoke by phone and jointly condemned the first

missile launch over japan in five years. they will also work with south korea on a longer-term response. the u.k. government says it sees the prospect of a deal with the eu on northern ireland's trade arrangements within weeks. the foreign secretary said the tone of discussions has improved following a long still make. sources say the u.k. sees agreements on trade flows as achievable, although many sticking points remain. thailand is battling some of its worst flooding in years, with large areas of farmland inundated by seasonal storms. 160,000 hectares of agricultural land has been affected, and some 80,000 houses damaged. the deluge is putting upward pressure on food prices and household debt, and enduring a tourism recovery. more heavy rain is forecast in coming weeks. new zealand house prices have suffered one of their biggest quarterly drops on record in the three months through september. corelogic new zealand says the

4.1 percent quarterly decline is second only to the record drop in the wake of the global financial crisis 14 years ago. prices in auckland fell 4%. in wellington they slumped 8.5%. 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'm vonnie quinn. this is bloomberg. shery: coming up next, we examine the shifts in washington's approach to beijing. on reports the biden administration will announce fresh curbs on china's accessor chips. this is bloomberg. ♪ at booking.com, finding perfect isn't rocket science. kitchen? sorted. hot tub, why not? and of course, puppy-friendly. we don't like to say perfect, but it's pretty perfect. booking.com, booking.yeah.

haidi: let's take a look at the state of play. we got a boost from the session on wall street overnight expectations, or sheer hope we might see the start of major central banks pivoting to a more dovish stance was set up on the small than expect it hike from the rba. quite a lot of analysts pointing cold water on citations from the fed. we are still seeing modest gains across asia. we are seeing the kospi gaining. some tech stocks also getting the tailwind of that elon musk twitter deal perhaps being back on foot.

the extension of that rally following the best today run for u.s. equities in more than two years. also seeing australia up by 1.5%, still basking in the afterglow of the rba decision. some pretty good gains when it comes to kiwi stocks as well before the rbnz. shery: we are following chip stocks as well. in the u.s. they surged. we saw the philadelphia semiconductor index finishing at a two-week high. reports that the biden administration is planning to announce new restrictions on sales of semiconductor to algae to china, boosting these stocks. our next guest says if the changes materialized, it would mark a significant shift from the white house towards a more public and dramatic decision-making style. let's bring in xiaomeng lu. good to have you back. so, what does it mean that the u.s. is willing to bring this tech rivalry to the forefront? xiaomeng: previously the biden administration had taken a

low-key, incremental approach in expanding technology control over chinese tech companies but momentum has been building last year under rumors swirling around about tightening control, or putting a memory company also on the list. i think there was a lot of industry pushback on these efforts, but partisan support to a more hawkish approach seems to have prevailed. shery: semiconductors, technology, so important during the pandemic. it seems that the demand for pc, found demand, has -- phone demand, has really cooled off. does this change the geopolitical need for these technologies? does this change the rivalry at all? xiaomeng: i think the industry trend, the industry shortage might be fading off.

but in terms of government intervention in the sector, it has just started. if you look at the u.s., china, eu, even india and south korea, they all have viewed the semiconductor industry is a critical element of their strategic power. that is why they keep growing -- throwing out more and more subsidies for the sector, mostly focusing on the high-end segment of the sector. that is a different motivation that i think this trend will continue. haidi: what is the risk for overbuilding capacity? it is ironic we talk about that given the shortages of the past couple of years. but is there a risk there? if these assets are being viewed as strategic assets by each country? xiaomeng: absolutely. government are offering different packages around the world to attract the most

competitive industry players in the space. almost all the benefits have strength attached. it is up to each company to decide if and how to have these advantages while avoiding overshooting redundant capacity building around the world. if you overbuild too much, this may cause erosion of the property margin further. i think every company's position is different and it is a tricky balance at this point. haidi: there of course his geopolitical risk within asia, too. in the event of worsening tensions between beijing and taipei, do we see more u.s. assistance for the chip sector there? xiaomeng: depends on what kind of tension you're talking about. if you are talking about a moderate military engagement, it acts a silicon shield deters chinese attention and attracts u.s. assistance.

they will attempt not to destroy the very viable asset while u.s. forces -- if a full-scale invasion like the one we saw in ukraine happened, technology is likely to be damaged. shery: when it comes to samsung -- haidi: when it comes to samsung's plans, are shareholders and stakeholders expect it to benefit significantly? xiaomeng: samsung just announced a major factor expansion play in the u.s.. it seems to be a clever play to me. the company claimed it would use -- it seems to be potentially wouldn't itself ahead of the

production schedule in the west . this would be viewed very favorably. a few weeks ago, they said similar things. they made comments that south korea should cheek -- should seek china's understanding. it is the kind of position dazing -- position beijing would like to see. appeasing strategies seem to take place. i would think this is a good first step in surviving. i think it is a smart move. shery: what does it mean to codify these rules for specific companies? these guidelines were given to some of these companies. now when you have it written out, what does it mean for the broader sector? xiaomeng: i think previously the u.s. government had sent letters

manufacturers and yet four of the new restrictions, now they are consolidating their position. putting more public attention on these types of moves and supposedly the upcoming rules from the white house will explain the rationale behind us. a lot of back-and-forth played into the shaping up of these. potentially ahead of the midterm election also motivated the biden administration to score political points in front of the public. haidi: always great to have you with us. xiaomeng lu, director of geo technology. bloomberg's big tech is taking a deep dive into china's evolution during xi jinping's decade of rule.

jenni marsh joins us now for more. xi is expected to trump his party's achievements. the reality when it comes to ordinary chinese, do we see it as a decade of social restriction? in many ways tighter state control measures. jenni: absolutely. when xi first came to power, people expect that he would continue taking china down a path of opening up and integrating with the world economy. what we have seen is a decade of social constriction. lgbtq rights have been massively rolled back under xi, feminism has been extinguished as a restaurant value -- western value. censorship is stronger than ever . all this is in the name of greater party control as the party tries to push citizens into the mold of the ideal citizen to benefit the goals of

the communist party. the pice today, we went there to explore this theme not only because it is a giant i guess eddie in the heart of china. it exemplifies so much growth but also this social restriction. also because it is a pivotal landmark in xi jinping's rise to power. it was here he ousted his main rival in 2012 for the leadership. the irony is people thought the other was the more ideological of the two. he led this red campaign. they thought xi jinping would be the more western looking leader. in reality it was xi jinping who has doubled down on party ideology. shery: so what does that mean? are we likely to see another five years after the party congress? what will that look like? jenni: i think if xi gets a third term, as he is widely expected to, it will only give

him more power, more control and more legitimacy. so i think you can expect him to keep pushing ahead with this ideal chinese sedition who was heterosexual, married, having more than one child, employed in an industry which benefits the communist party's goals. in recent years, particularly with the closure of borders under covid, the isolation from western and foreign ideas we saw through the internet seems to only be coming more to the fore, but physically now with the closure of borders and a huge boom in chinese tourism and travel we saw seems to also be in a phase of aggression -- regression. shery: jenni marsh joining us from hong kong. we have the reopen of the markets in the city. we will see if they play catch up to global equities. this is bloomberg. ♪

haidi: we are watching the resumption of trading in hong kong as markets reopen after a public holiday following a rally in the nasdaq golden dragon index. let's bring in catherine nine. do we expect the hong kong reopen to be positive? >> good morning.

everything is in the green so far for the other markets that have opened regionally and it is safe to say knock on wood that hong kong will be playing a bit of catch-up and seeing a rare rally today. shery: what are the sectors you will be watching? >> tech will be the big one. last week the hang seng tech index took out its march low and sort of registered a new fresh low for that gauge. it is a fairly young gauge launched in 2020 but still representative of the biggest china tech stocks traded here in hong kong. that should see a nice rebound and that has been heavily battered in recent years. of course we will be watching for property. i think there is a lot of anticipation in terms of what will happen later this month with the party congress and people really expecting some of

the policies that will be implemented will benefit the property sector. we have seen a number of measures by government in recent days supporting the property industry. we had a fairly good rally before market close and i think we will be watching that one closely. and of course just the broader market. i was mentioning hang seng earlier hitting a record low. hscei last week hit a multiyear low. watching more broadly on the index top-down level i think will be a big one to look for today. haidi: of course the rbnz decision is just minutes away. do they stick to that 50 basis point move as expected? or has the dovish tone changed things? that is one the markets are watching, particularly given

there are market participants, stock and bond bulls hoping for more of a pivot. shery: and we could see really the wind being knocked out of those bond holds if we do get a hawkish surprise from the rbnz. you cannot really completely discount that because we had the kiwi slump to the 13 year low which is really fueling inflationary pressures. coming up we will be discussing that potential 50 basis point hike for the fifth straight time from the rbnz. j.p. morgan asset management joins us next. we will also talk to wpic on the effects of china's covid curves on the golden week holiday. bloomberg markets china open is annexed. this is bloomberg. ♪