>> good morning welcome to daybreak australia. >> we are counting down to asia's mark -- major market open. >> let's -- the top stories this hour. u.s. stocks slide, the s&p 500 posting a second straight day of losses ahead of the crucial jobs report, the dollar and treasury yield rises. >> traders digesting more hawkish investors, and their mission to crush rate hikes. >> underlying inflation is headed back down hopefully. i'm not ready to declare pause. >> elon musk scores a win with the judge halting twitters case against him, giving the party three weeks to close the $44 billion deal. u.s. futures extending losses in the asian open, this after every

sector and the s&p 500 was in the red, except for energy. the energy sector was up, given double ti prices are -- wti prices gaining ground. this after that production cut announcement by opec. we have the 10 year yield also rising again for the second session, above the 380 level. the hawkish commas coming from the fed, being felt across of the. market this has to do with data we had jobless claims arising more than expected. numbers out this morning, showing a robust labor market. take a look at the u.s. unemployment rate, it's a tight labor market. we are expecting the crucial job numbers on friday, to 60,000 jobs being added is the expectation. when it comes to the on employment rate, we have to be careful about what the fed predicts. they expect the rate will rise to 4.4%. we know the fed hasn't been very good at predicting joblessness

around recessions. it is three times in the past, it has seen the jobless rate higher by more than a percentage point or so. it's something to keep in mind, when a recession hits, how bad and how fast to the labor market could get, is anybody's guess. >> that's right, you've also got a look at the expectations from traders and how that differs from what economist expected. they are saying to 59,000 jobs. but that is the big data set we are watching today. a lot for traders to continue as you mention the hawkish fed, we have the governor saying that. we can. expect rate hikes into 2023 a lot of anxiety in asia. but ozzie futures, new zealand already online in the red. dollar strength is the other factor of this that will weigh on the stocks. in terms of what we are seeing in the currency, the yen is back

above the key 145 level. 14590 is the yearly high. it has been a good a few sessions for asia stocks. we are still looking to gain on the week. this, taking a look at itm, could be a factor. looking at returns for asia stocks on a monthly basis for the past 10 years. this month so far, 2021 and someone, here is 10 year average. in october asian stocks have got 1.1 -- 1.15%. it doesn't take into account trading volume. we can expect volumes ascent today because of the jobs report coming out. your taking a look at liquidity stressors in the treasury market. haidi: of course this is a huge a story and a huge concern that is growing a lot of treasury market watchers, given that it is a benchmark by which we are taking a look to the lens from every single sovereign market.

the liquidity prices that may be building is is exposing the fed to its biggest nightmare because we know the fed can be forced into tih -- this, but given we are expecting to see tightening, that is going to be counter to the overall direction of being able to tighten financial conditions. we have seen volatility globally high knee concerns about what -- heightening concerns, bout regulators failures to dissolve liquidity. it is making it harder to make these big trade and treasury. we're hearing from evercore, isi. they are characterizing this as troubling deterioration in treasure market liquidity. we are watching for any structural market reforms that could come next week. shery: the pecan yields we saw today, coming from one of -- the peak in yields we saw today, it

is hard to do anything in the market without big price swings. we are seeing this not only the u.s., but globally, this is the bond market liquidity across the u.k. and u.s., germany and italy. as liquidity worsens, you can see the lines shooting up. we have seen sentiment also being soured by this rise in u.k. gilt yields. the market that is being hit, an ongoing story, especially in the spring of 2020. you can't rely on the fed to be the buyer as a last resort. it gets awkward when you're trying to carry on. with qt. haidi: there are messages with what they are trying to express with their commitment to trying to bring down inflation. top fed officials have spoken in the past when he for hours, sending the same mission -- message, a rate hike pause is a long way off. kathleen hays is here. can we say that there any doves left at the fed? >> it's all full of hawks now.

let's start with the president of minneapolis. less than a year ago, he was pounding the table like a dove, we have to be careful, covid-19 has not lifted our economy system. in the past months he has become one of the leading hawks. let's listen to what he said, if he may be ready to slow down a bit or pause. >> we need to stay the course. we said we were going to do this and we need to follow through and validate the expectations we set in markets. until i see evidence that underlying inflation has peaked and is headed back down, i'm not ready to declare pause. we are a ways away from a pause. >> crystal clear. lisa cook is a relatively new governor on the fed board. people thought, maybe this new governor would be a little more dovish because she has done theoretical work, academic work

in the past looking at the impact of to type policy. you need to look out for the more vulnerable parts of our economy, of our population. but she gave her speech. what she said was that inflation requires ongoing hikes. she is clearly not sounding like a dove. let's go down the list. inflation is still high. chris waller speaking late this afternoon here in the u.s., he says russia sees no meaningful progress on inflation -- sees no meaningful progress on inflation. charlie evans used to be a pretty big dove, he says we are headed for the peak -- top rate for the foreseeable future. 4.5% to 4.75%, by springtime. this is a guy who used to wonder how high we would have to go. chris waller is saying a soft landing is still possible, but the landing strip shrinking.

i love that image. what are we going to get next, is the feds a job report, we get that tomorrow. what if jobs start softening. the jobless claims rose a bit. but they are still very very low. they are expecting a. tight labor market. we will see some slow in payroll. to, $50,000 after 315, that is still considered a solid gain. unemployment as close to a 50 year low, average hourly loading, the year-over-year rate is slower. before the pandemic that is double what it used to be. it is strong wage gains. the feds are meeting on november 2. even if you got a cpi that continues to slow. if you get a jobs report that looks like this and inflation stays high, it is unlikely that the fed will make any shift in its message and any part of what we are seeing now. shery: are global economics and policy editor, kathleen hays.

we will get more fed speak later today. we have a a speaker later today. for more on the flying u.s. stocks, given the jobs report, let's bring in our equities reporter. we have continued to see retail investors exiting the markets. earnings coming up. perhaps no corporate buybacks for now. where are we headed? >> there are a lot of big catalysts coming up. we will also get the first reading on the third quarter gdp later this month ahead of the midterm elections. the big thing now, even despite the past two days of losses for the s&p 500, because the first two, days of this week the strongest today rally we had it since april 2020, that still puts the s&p 500 on course for over 4% gains this week. that would snap a three straight weeks of losses. if you pull back would potentially be the second week of gains in the last two months. if you're looking at how deep

declines have been over the past eight weeks, it signals how much of the pessimism had been baked into the market. especially when you're looking at sentiment indicators, it looks like when you're looking at the flows data. be of a had their client data come out the -- bank of america had their client data come out. basically, even though investors have extreme pessimism now, they are not showing up defensively in the flows data. when i'm talking to traders, they feel like we are in a washout. we're in a bullish time of the year for the market. so because of the losses we have seen recently and last week, they still think we could potentially be in for a bounce despite what we are seeing with a jobs data. especially with what comes out tomorrow with the numbers, investors will see, any indication, when we saw the jolts number this week, they want to see confirmation in those numbers coming out. haidi: are bloomberg's equity

report -- our bloomberg equities reporter. the next thing we are watching is twitter and tesla after a delaware judge halted the case on elon musk, ordering the parties to close the deal by 5:00 p.m. on october 28. let's bring in our technology reporter with the latest. what happens, given that we know they have been stuck on this contingency clause on debt financing? >> well, what the judge did today was say, hey, it seems you are close to the deal. elon and his lawyers said we can get this done by the 28th. she said, ok, prove it. now it is up to both sides to actually get all of that paperwork done, get the debt financing finalized in order to get the deal done, if it is not done by the 28th, then the new trial date will be set sometime in november. it will pick up right where we left off. shery: why did twitter want to close the deal next week, are they afraid musk may back out

again? what is the problem? >> twitter has pushed to do this as quickly as possible this entire time. their commitment has been longer, the more it harms the company, the more uncertainty it creates for employees, for the business. they are -- their instinct has always to been to do this as quickly as possible. there is a huge amount of distrust. elon has changed his mind a couple of times. the fear for twitter is the longer lease she has, the longer runway -- leash he has, the longer time yes to torpedo this deal. the quicker they can get this done the better. haidi: we saw that hit the tesla stocks. what are investors worried, particularly when it comes to this concern about elon musk being distracted or spread too thin? >> he it i -- he is already running to companies, now hugh

-- now you throw twitter into the mix. this is a person who has a ton of commitments, a ton of distractions going on. if you are a tesla investor, of course you do not want to see the person who was supposed to be getting the cars over the line every quarter while dealing with all the headaches that come with running twitter. running twitter is not an easy job. there's a reason they have had multiple ceos over the last decade. why jack dorsey left. this is not an easy company to run. then, you add in all of the issues they had around policy and free speech and politics. suddenly this becomes a headache of a job. i'm sure if you are tesla investor, that is not what you want elon musk spending his time doing. shery: looking forward to anymore fireworks before the october 28 closing date. kurt wagner with the latest on the twitter/musk deal. let's get over to vonnie quinn. >> thank you. the type prime minister will visit the scene of the country's

worst mass killing on friday, after ordering an urgent investigation into the tragedy. the 34 euro man killed, at -- killed most children at a daycare center in the. countries north he has been identified as a former police sergeant due in court on friday, charged with methamphetamine possessions. the bank of india has pushed back against the u.k. government and their claims that the recent market was part of the global selloff. the bank had no choice but to intervene to prevent managers dumping 50 billion pounds of guilt, and triggering a market crash. the government story about why markets have been a punishing the u.k. pushing guilds and the pound to historic lows. the u.s. department of justice is investigating the london-based oil trading company about manipulation of fuel prices. it has been under scrutiny since last year. one focus has been activity

during a key trading window. we are told the commodity trade futures is looking at the manipulation as well. u.s. treasury secretary janet yellen is proposing changes for the world bank. the changes seek to address global threats to speed up the flow of emerging economies. yellen has endorsed a multilateral banks could increase their lending without significantly increasing risks. global news 24 hours a day on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries around the world. i am vonnie quinn. this is bloomberg. haidi: still ahead, we're counting down to the u.s. jobs report. any signs that the labor market is finally cooling-off. are chief economist will be joining us later -- our chief economist will be joining us later. we will talk about pharmaceutical and medical firms. mariann montagne joins us in just a moment. this is bloomberg. ♪

>> we are in this high inflation environment and being able to forecast in real-time the turning point, where waiting for inflation to peak and come back down. that is going to be critical for

policymaking. >> we look, according to our reports, headed for 4.5 to 4.575% next year, given by how fast we've been rating -- raising interest rates, it will be around springtime. haidi: fed officials speaking about the battle to reign in inflation. u.s. stocks have little encouragement to sustain rebound ahead of the jobs report. our next guest remains cautious of the next few weeks but optimistic for the balance of the year. let's bring in mariann montagne, portfolio manager at gradient investments. what do you see beyond the next few weeks that gives you reason to be optimistic? >> well, beyond the next few weeks, we see that we will have a better inflation report, because october last year was when it started to accelerate. we will have easier comparisons. we will also have the earnings underway and in disrespect we

see that earnings expectations have fallen sharply for the third quarter. we believe they will be better than expected. the official rate for the third quarter is 2% gain, with several sectors in the negative territory. we think that 2% is too low and anything better than that will be positive. the third thing we see is the election from the u.s. and that is where we see the republicans taking control of congress. just to have a mixed administration between the democratic president on the republican congress, probably means there will be little legislation passed. that means we know the rules of the game. we know how to go forward. there's no questions about what the regulations will be going forward, if we don't have any new legislation. forcefully, we see the changeover -- we see the changeover, not really changeover but a change in the chinese leadership to something

of a more permanent president for life. probably leading to some unlockdowns. a reopening of manufacturing in china, more exports to the u.s., and freeing up supplies and lowering the prices of supplies in parts that are needed in the u.s. manufacturing sector your. -- sector. haidi: when you take a look at the outlook, where you see the opportunity to benefit, given we have seen valuations come down? >> i think small caps is an interesting area. there's a lot of industrials in that. there's also health care. we do like the health care sector. we like it across all sizes actually. if there was one favorite sector, it will be health care now. this is something that needs to have revenues, no matter what

the economy is like, no matter what inflation is like. people are receiving more medical care, prolonging their lives for more medical care down the road. it's an area that is undervalued right now. shery: you take into account what the fed might do going forward. this chart showing how the market is pricing a now, rate cuts instead of rate hikes in 2023 and 2024. i was talking about how the fed has misjudged the past 50 years, how fast the level of joblessness could deteriorate. >> right. again, we think this is a supply problem, more than an inflation problem. if we get more supplies that will bring prices down. to answer your question about the pace of interest rate hikes, we think once they stop raising 75 basis points per month, which we think is in the three to four

month forecast. once they change the trajectory of interest rate hikes, the market will improve, based on that. we could get to the 4.5% area, that is overshooting it probably. it gives them more ammunition at the next time we go into a recession, to be able to cut interest rates and stimulate the economy. but, we think it could go to the 4.5% area before it starts turning downward. shery: we are seeing yields zooming up a percent. anything interesting when it comes to corporate or sovereign bonds? >> well, we are thinking right now the rates are good. if you're going to hold onto your bonds for a few years, it is probably not a bad time right now. they are so much higher than the yields stocks.

they do afford some balance to the portfolio which they have not been able to provide year-to-date. that is something people like to have some treasuries for high-quality corporate's in their portfolio to just give them some sense of security. even though they may be giving up some upside on the stock rises -- rices. we think treasuries and corporate's in the u.s. are looking more attractive. shery: mariann montagne, portfolio manager at gradient investments. you can get all of the stories on today's addition of daybreak terminal subscribers can go to day b . this is bloomberg. ♪

shery: here's a quick check of the business flash headlines. peloton is laying off employees for the fourth time this year, along with other reductions in operating expenses. . the fitness company is cutting its workforce by 500 globally. peloton has slashed more than 4000 jobs in february. amazon plans to hire 150,000 seasonal workers, the same as last year, despite predictions of a lackluster holiday shopping season. the announcement suggests the online retailer expects steady demand even with shoppers back in stores and facing the highest inflation in decades. this is bloomberg.

haidi: -- >> a delaware judge is

holding a hard case against elon musk, given the party until october 28. musk accused twitter of not taking yes for an answer. twitter objected to the processing musk can and should close the deal next week. the u.s. has sanctioned seven iranians officials accused of the leading crock down and a cut off. the communications minister, the protest began over the death of a 22-year-old who was arrested for allegedly flouting islamic dress codes. the move request to push from the biting administration support the protests. the swedish government is blaming explosion to the nord stream pipeline. the swedish security service as the investigation has increased suspicions of sabotage. the danish and german officials are also investigating.

the latest cctv shows officials wanted a 50 basis point hike in september, they have agreed to a three-quarter point hike, amid the next interest rate for september hike. the central bank is fighting inflation, 10% of the block, will risking a looming downturn. president biden is -- ordering a review of the legal status of those convicted of possession of marijuana, he issued a blanket pardon for all federal offenses for possessions. he urged governors to issue similar pardons for offenses involving marijuana. global news 24 hours a day on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries around the world. shery: the u.s. market report is in sharp focus. this would be the monthly employment report.

our next guest says the fed is not going to change their tactic anytime soon, no matter what the numbers are. with us now is jeanette garretty , chief economist at robertson stephens wealth management. what is your expectation for the jobs number and what will the fed we watching? -- we watching? >> i know the number i would like to see in the markets would like to see it too, somewhere between 200000 and 250,000 jobs created. let me explain that the 250,000 number would be job growth in the u.s. traditionally consistent with about 2% economic growth. that in fact is signaling we are getting some of the data which is the third quarter gdp numbers are likely to percent. some of that is inventory building. it's difficult to say how strong.

if it is substantially lower than that, there will be two concerns about the near term outlook for consumer demand. i don't expect it to be a larger number. shery: how closely are you watching the labor force participation rate? this a chart showing 50% of americans do not want to drop, our 55 years or older. they will probably not be returning to the labor force what would that mean for the broader economy? >> i can't overstate how big of a question this is. either it is extremely productive workers, who have left, and by the way, this is not just the u.s. a trend. it's the same thing in europe. there was discussion in the u.k. about the same phenomena. i think they do need to come back as a wealth manager and financial planner, they need to come back because of the

long-term health of their financial portfolio. so, it will be very important. but they are not coming back yet . so, this is something we're watching very carefully. haidi: you talk about the u.s. dollar continuing to be strong. for you, this is more than just interest rate differentials and a difference in central bank policy. >> yeah. on a day-to-day basis, you often see this expressed in interest rate differentials. usually there is a longer term plan. people look at the u.s. dollar, and it's driven by a desire to make inventions in the u.s.\ this stock market in the u.s. is nothing any of us like to write home about. nevertheless, the economy is on a more solid footing than most places.

earnings still look attractive. so, as a result, i think when it -- what it comes down to it, the strengthen the dollar is being derived from a clear monetary policy, a very difficult one, very clearly expressed, and an economy that is growing and earnings growth that is still there. haidi: this is a fed on message in chorus when you hear from the speakers this week, reiterating their commitment to getting inflation lower, until it is meaningfully lower. you take a look at this chart. this is what we hear from other fed speakers trying to push back against, which is market expectations are looking like they are raising 24.5% by march of next year -- to for first -- to 4.5% by march of next year. march is being seen as the peak for this market at the moment. is this a sign that investors are almost passing a policy

mistake? what is not getting through here? >> i do not know what is getting -- what is not getting through. i think people forgot what fed officials tend to lead and how the fed watches. when you hear all the fed governors saying the same thing, it makes sense to to say this is what we are going to do. more generally, fed policies usually established with, at any time, a to two and a half year timeline. the fed is saying this is where we are going to go, and we're going to get there consistently, it's not seen as a short-term move. it's a long-term plan. if the economy, when we get to 4.5, i agree that is a reasonable number, i would still be frontloaded, i tend to favor

the march timeframe, when we get to 4.5%, if the economy is not showing cracks in it, the fed will sit there and let it grow to 2%, that is their long-term growth outlook for the u.s. economy. thing -- they will be very happy with that number, as the economy has adjusted to it. we will see if there are other things that happen come next spring, that may require -- haidi: a dysfunction and how the market is functioning. shery: especially in the treasury space given what the fed has done with qe, this chart is showing not only the u.s., but globally how bond liquidity has been worsening. we have seen market that's falling -- that's falling to market lows, and other time when we have quantitative tightening.

the fed cannot swoop in and become the buyer at the last resort. >> yeah. poor credit markets you are trying to make sense of all of this. there is in these markets. you see situations, such as the bank of england having to say, maybe we will just do quantitative easing, at the same time we are doing quantitative tightening. this is boiling these markets. i think that with the numbers we are seeing out of the u.s., which may in fact imply direction on where the economy is moving, a better insight as to where the economy is, and what the fed will do, then the things settle down, it will be a good thing. i believe every central banker out there is watching liquidity like a hawk. that's a bad choice of words. they are it very carefully.

we will be prepared step in if -- a step in if there are structural pressures. right now there is very little evidence. haidi: is this a good example of the unusual conflicts we are seeing in the macroeconomy and what policymakers are facing? at the moment you're not seeing signs of real recession risk, police in the u.s., what are the risk that that could change -- at least in the u.s., what are the risk that that could change? >> if employment, it's a discussion about labor markets, if it turns into a discussion about marginal unemployment. therefore the impact on consumer demand, which is important to economic growth. what the fed wants to see is for labor market tightness to ease, almost entirely on the basis of open jobs being eliminated, not

necessarily in creating job loss. they may pull that off. it is part of the definition of a soft landing. it's kind of happening right now. but, if this is the way it plays out over the next three months, this deserves to go into some sort of miracle hall of fame, right up there with the splitting of the red sea. usually, this is a very tough trick to pull off. so, so -- so, it is the unemployment rate, the number of people who end up losing their jobs, that it becomes a big issue over the next couple of months. the fed is helping, not to money. i am hoping it is not too many. in my view, it is the key underpinni have 2% growth or whether we have 0% growth or slightly negative. haidi: jeanette garretty, chief economist at robertson stephens

wealth management. the fed will not stop hiking rates until it is forced to pivot. what do they see as being the catalyst here? >> so, as you said, a scott minerd speaking on twitter and on television, saying something needs to break in the market. he says the pace at which the fed and other central banks have been tightening is causing a lot of financial distress in the markets. he says that could lead to what is called the financial accident. something that would force the fed's hand and change and force it to change its policies. a lot of catalysts out there. he is watching particular, that is the into money supply. this is a gauge of the currency held by the public at any particular point in time. take a look at this. you can see the money supply is actually contracting, it grows back below the average here. have we seen the market bottom?

scott minerd says the bear market still has a ways to go. he says the vix is elevated, but not at a level because historically it's got to be at 40 for the fed to change its policy. he says we have a ways to go. stop trying to pick a bottom. urging investors. instead they should be positioning for capitulation. shery: that does not bode well for emerging markets, given it takes the brunt of the hits. >> that's right. this is also something bloomberg intelligence has been looking at. they are tracking the amount of threats in the markets. this is the number of stocks rising or falling on a daily basis. you average that over the months, they are saying it has become very low in the markets since september. we were around -23%. that takes us to the historic low of -26% late september 2008.

what that implies is we are going to see a limited upside from your, as you take a look at this chart. essentially, when we see the low breath months, that correlates with contractions over the one to six months of 1% to 2%. it stacks up what we are seeing in the data. again we are on track for emerging markets to decline on the year of trails. what we have been hearing from analysts out there, the likes of jonathan ghana, he says emerging markets could actually be set to gain over the next coming months. shery: for more on this story and other top stories, bloomberg radio is your go to destination. you have the big newsmakers also analysis from our daybreak team,

broadcasting live from our studio in hong kong. listen through the app or bloombergradio.com. plenty more ahead. stay with us. ♪

>> we are doing what we can to make sure, the banks have of their jobs to do and it will have the impacts that we would

expect to see when he see interest rates increasing. i've got a lot of confidence in the long-term resilience of the economy. haidi: new zealand's finance minister grant robertson sharing his view that the nation can avoid a recession in this interview on bloomberg tv. let's take a look at the day for australia new zealand. where watching the surf bank, some eight -- reserve a bank's semiannual review. where watching mining is stocks -- we're watching mining stocks. they have approached resilient officials to continue negotiate a settlement in the 2015 firm disaster. shuttle resources and the joint venture partner are pushing through with the thunderbird mineral project in northern western australia. let's take a look at how we are setting up on early trade on the fx front. we had this push back against the idea of a pivot from top fed

officials going into those labor market numbers due out from the u.s. we are seeing upside when it comes to the aussie dollar, but under 65 u.s. cents. the kiwi dollar is largely unchanged. dollar-yen at the 145 level. we just see that the failure for the yen's intervention, it did not have an impact on the hold. the dollar in china sitting at a holder there as well. we are looking at more difficulties for asia dollar ball hours, given we are getting to the crunch as well. shery: renewed strength on the greenback as well. we are seeing oil prices gain. that is not surprising given the opec-plus reliance and their announcement that they will be cutting 2 million barrels a day of daily output. this now has morgan stanley forecasting that we have accelerated a path back to $100 a barrel.

wti rises in the asian session. president biden saying the u.s. is looking at alternatives in response to the opec-plus decision to cut output, u.s. a senior advisor for global energy security speaks to bloomberg, about those alternatives. >> let me just stress where we are today. we were very disappointed in of the decision by opec in russia yesterday. we think it was a mistake. it's not substantiated by energy markets, by the global economy or by any other metric. it was unnecessary at this time. prices are already elevated. there was no real eminent threat of a major collapse in prices that would necessitate a cut. i understand that we have watched opec for a long time, there's a difference from what they announce and what they do. opec's quotas are under

producing, by more than the 2 million barrel cuts. let's see if this actually has any impact whatsoever in actual production numbers. we are going to continue to work at home and with our allies. we're going to work with our u.s. companies to ensure they continue to increase production. and make sure we have the refining capacity. we are down a couple of refineries due to accidents in maintenance. to make sure we have enough inventory along the east coast and parts of the midwest and the west coast to make sure we have supplies. we will bring focus on bringing down prices. we have some work to do on the spr. >> there's a lot to unpack. one of the reasons opec talked about doing this was to incentivize for capacity, higher oil price now to get more oil out of the ground. if not it will stay in the ground and there will be a shortage. if there is truth to that, why not take that view with u.s. producers.

why go to your allies? we have oil that we can get out, why not pick up the phone to oil production companies and say, what can we do to get you to produce more? >> there is an assumption based in your question that were not doing that. for the last several months, we have had conversations with the leadership of almost every major oil producer in the u.s., told them what you need to be incentivized to increase production? we have had that honest conversation. they have what they need. they do. not need anything else. i've had this conversation. >> we talked to the industry, they would point out that if the threat of regulation down the road, that's the issue. >> i take issue with that. i don't think that that is accurate. if you look at where -- it's always where you put your money. topics has increased. they are increasing production. they announce those increases in

capex several months ago. it takes time for that to materialize in production. we have seen the increased production. we know the projection is for them to increase production in 2023, a couple of quarters in 2023. they have what they need. haidi:, special presidential coordinator for global infrastructure and energy security speaking with bloomberg. coming up next, buying outside investors to inject running into is investment based spinoff. we will get the latest, next. this is bloomberg . ♪

shery: we will continue to watch the saga around credit suisse, with an analyst with jp morgan saying we need that final restructuring for the bank. sources are telling bloomberg we might be seeing, credit suisse trying to bring in an outside investor to inject money into the spin off of their advisory. the business being targeted will be for a boutique style model in the future, that will include advisory and dealmaking teams and leverage finances well. heidi, we have learned that it is a complicated -- it is complicated, given they have seen this exit is in their

investment banking division, that really worsened after that multibillion-dollar collapse of arcade goes -- archaegos. haidi: after the racking up of these huge losses, the frontline played in some of. . the biggest scandals as well we are hearing about -- the first a boston name revival is underway. we are hearing from jp morgan analysts saying that the final restructuring is needed. it is expected to unveil the strategy review later this month. jp morgan is saying that shares of credit suisse are more than the market is currently pricing. they need to see the review of the final restructuring, $15 billion is the minimal value being seen today, to this report from jp morgan. we will bring you the latest as

we get those developments. and all of the bigger questions about capital requirements for global banks. there's a lot of fragility. in the meantime let's take a look at the business flash headlines. they are seeking billions of dollars for the venture capital fund. sources tell us it is a reduction from the $8 billion initially flecked to clients. tiger has written down the portfolio, investors pull back from the asset class. it's fund will focus on starbucks in india. alipay has been removed from shanghai. the mobile payment giant failed to meet spending requirements for r&d according to the government. that is it for daybreak australia. daybreak: asia is next. this is bloomberg. ♪

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