haidi: welcome to daybreak australia.

>> we are counting down to asia's major market open. shery: the top stories of this hour. u.s. stocks fall. chip stock sinking to 2020 lows after fresh restrictions on china's access to u.s. technology. haidi: lael brainard lays out the case for fighting inflation, the world bank and imf warned of a $4 trillion global recession. shery: president biden condemns latest missile barraged on ukraine as vladimir putin threatens further attacks. annabelle: u.s. futures seeing a little bit of an asian session -- sing a little bit of a pick up on the asian session. when it came to the semi conductors, the pressure was felt across the board. november 2020 lows down 40%.

not to mention it was not just washington's actions but it was also the fact we got a peek into earnings season that did not look great last week with samsung. crude prices falling for the first time in six sessions. we continue to see the downside pressure. mobile demand concerns coming to the forefront despite the fact we have opec plus announcing production cuts. not to mention geopolitical tensions around ukraine. we were and it came to the $24 n treasury market, you can actually see how central banks and foreign governments have been offloading treasuries. we are talking about this record laws of $29 billion last week. we have had countries dipping into the foreign exchange reserve given pressure on their currencies but we have the

ongoing qt with the fed being out of the equation when it comes to marginal buyer of treasuries. demand could be a key concern going forward and something that could cause more pain for this space. haidi: in asia, japan is one of the key places that have been forced to leave the treasury market. it is not just about currency hedging costs high for the yen. japan could be forced to sell treasury holdings to stem the losses in the yen as well and bank of america is one of those that sees that happening. the yen close to the level in 2022. in terms of again volatility, this is interesting because the level is 50% lower than what it once a month ago. an indication that traders see any intervention in the future being less effective than the past. also keeping an eye on what we

see in the offshore yuan. when i only have tensions with the west deteriorating. but the pboc still sticking with support. a stronger fix for the onshore yuan. in terms of central bank actions, take a look at what is happening in the aussie kiwi this morning. these are two central banks pivoting in alternative direction on rates. you have the aussie rba staying more dovish. the rbnz sticking with a hawkish path. now could be the time to pivot. we are looking a little more positive for asx 200 futures. new zealand online to the upside. perhaps this comes down to one key fed official urging more caution on the outlook for rates. shery: we continue to watch that potential fed pivot. we seem to have moved away from

that attentional case. at the same time market seem to have taken some optimism coming from the comments when it comes to being a little more cautious when it comes to federate heights. -- fed rate hikes. she had made similar comments last month. still right now the best case narrow is we will continue to see fed policy being restrictive and potentially a fourth straight 75 basis point increase. the google macro picture seat -- the global macro picture seems to have changed. >> returned to see the effect of some sectors but it is going to take time for the cumulative tightening to transmit throughout the economy and for inflation to come down. uncertainty is high so i'm paying close attention to global risk. haidi: global risk is being reiterated by the likes of the imf and the world bank. these global institutions

warning of the increasing risk of global recession. this is what we continue to see play out in the markets when it comes to the pricing for a potential policy ever that forces the potential pivot. we have heard from the heads of the imf and the world bank. looking at the fact that the u.s. labor market is still very strong but losing momentum because of the impact of higher rates. according to the managing director, talking about that. we have seen them calculating one third of the world economy will have at least two consecutive quarters of a tracking list year. output is being consumed at $4 trillion. she also said they cannot let inflation be a runaway train. this policy balance and the risk of the misstep remains front and center. shery: not surprising. markets pretty volatile. it's bring in bloomberg equities

reporter just mentioned and eric martin. we are not only talking about the potential comments coming from lael brainard and markets taking a more optimistic view about what the fed will do but the fed we have -- but the fact we have inflation a bruise coming and third-quarter earnings season started. >> it is a huge week. we have a batch of key inflation data. on thursday we look at the cpi print for last month. on tuesday we will get the new york fed's five-year inflation expectations. following the cpi report on thursday, we will get on friday, the university of michigan will have their three to five-year inflation expectations. even with lael brainard's statements, she still said policy will need to be retreated for some time to ensure inflation does move back to the target. that echoed other fed official statements from last week. we heard from the chicago fed president. he said the fed needs to get to

a level policymakers can feel comfortable pausing to reduce the risk of overshooting. it is interesting because a lot of these fed speakers have noted investors are getting confused with a fed pivot they are indicating even if there is a pause in the policy it could stay there for some time. haidi: we were just talking about these warnings from the imf and the world bank. we heard talking about in balancing act. take a listen to the world inc. president and what he has to say about the risks of a global recession. >> the risk and the world -- the real danger of a recession next year. the advanced economies are slowing in europe. the debt levels for the developing countries are getting more burdensome. the rise in interest rates puts added weight on it. the inflation is a major problem for everyone but especially for

the poor. haidi: definitely a consistent coherent theme when it comes to these warnings we are hearing from these institutions. >> absolutely. the concern about the economy and the possibility of a global recession is very real. we had crystal inequity ava speaking last week and talking about a $4 trillion hole in the global economy based on lost output from now through 2026. that is a hole the size of the entire german economy. also talking about how for many people, potentially hunt -- potentially tens or hundreds of millions of people around the world even if the economy expands next year it will feel like a recession because of the impact of inflation and because of the central bank tightening and the crimping of growth in order to get a hold of this potentially price -- trying to

get ahead of that. that is definitely a storm cloud hanging over the imf and world bank meeting as finance ministers and central bank governors arrive to washington. haidi: with all this outlook downgrade, i keep wondering whether valuations are low enough now to meet if not beat expectations. certainly we had a big shock for the oil makers. >> earnings projections for the third quarter have come down dramatically. for the third quarter, s&p 500 company growth is sitting below 3%. when second quarter earnings has started to present, it was sitting at 10%. investors have been questioning how long it would take for earnings estimates and s&p 500 targets to come down. when i am talking to strategist, they think companies will be likely to be to those

expectations because they have come down so dramatically. the key is looking at the guidance and the outlook. we have heard from chipmakers. looking at the philadelphia semi conductor index down 3.5% and that extended the declines from friday. samsung reported its first profit drop from 2019. they did put out a per luminary third-quarter sales that did ms. projections. we are seeing a quarter of the market under pressure and putting the nasdaq 100 down to its lowest level since november 2020. we are getting indications of that core of the market and what that says about that part of the economy. looking toward the teal end of the week where we do hear from big banks like jp morgan, wells fargo and morgan stanley on friday. it is going to be a big indication on the health of the consumer moving forward. shery: what are we expecting in terms of financial stability as we get that report tomorrow? >> people will be looking to see what the imf's message is on

financial stability. the danger of spillovers. there is a recognition what happens in washington does not stay in washington in terms of the federal reserve and its decisions. what happens with the fed and prompting a stronger dollar against emerging and market currencies has a severe impact on the inflation dynamics in some of these countries. a lot of focus around what are the impacts of that monetary policy tightening by the fed in markets. shery: eric martin as well as jess menton with our top stories today. president biden condemning what he called the utter brutality of russia's missiles on civilian targets in ukraine. the most intense since the early days of the invasion. vladimir putin is threatening more tax let's bring in jodi schneider. what does this mean in terms of more measures coming from allies? >> we did hear from president

biden who condemned, strongly condemned the attack but he did not say what actions could be taken. he did hint, signaled that there could be more sanctions against russia. there have been several serious rounds of sanctions but also more weapons to ukraine. ukraine has badly wanted the u.s. and allies to really provide higher levels of weaponry. u.s. has some i resisted because that could be seen as more direct involvement but the ukrainian president zelenskyy has now said the time for that has passed. that they need more serious weaponry to stave off these kind of attacks. haidi: so what are we expecting in terms of any eminent global response, allied response? what more can allies do at this point given the way this war and this that'll has dragged on?

>> that is one of the key questions because there has been a -- there have been rounds and rounds of sanctions from the u.s., from european countries and yet they don't seem to have stopped vladimir putin in the ukraine. the u.s. has said it will ramp up these kind of responses. today president biden did speak to president zelenskyy of ukraine. we don't know what was said. the white house did confirm the conversation occurred. tomorrow, leaders of the g7 will be having a phone call with mr. zelenskyy and you can imagine that very question will come up about particularly about weaponry. haidi: the latest. let's get you to vonnie quinn with the first word headlines. vonnie: thank you and good morning today selloff in u.k.

bonds has deepened after the bank of england's move to extend an emergency backstop failed to reassure the markets. it also confirmed the first round of emergency -- would end as planned on october 14. the chancellor unveiling the new plan on october 31 ahead of the boe's next interest rate decision. malaysia is headed for early elections this year after the prime minister announced his -- announced the dissolution of parliament. seeking to strengthen his position following a run of successful local polls. he says of the election commission will decide on the date of the vote but must be held within 60 days. iranian oil workers joining protests over the death of a 20 three rd woman last month under the custody of the so-called morality police. video reportedly shows dozens of laborers in your foreign workers marching through a plan on the persian gulf.

national pressure on iran's leadership is mounting with u.k. imposing sanctions on its security forces. from a federal reserve chair ben bernanke and two heavy -- two of his u.s.-based comics have been awarded the nobel prize for economics. they will share their $885,000 award. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. haidi: will be discussing china's political future. evidence suggests domestic standing is stronger than many believe. the key points to watch out for at the upcoming party conference. this is bloomberg. ♪

>> front loading was a good thing given how far below normal neutral rates were. but overshooting is costly too and there is great uncertainty about how restrictive policy must actually become.

shery: the chicago fed president charles evans peered our next guest has a non-consensus view the fed will cut rates in 2023. let's bring in the cio of zuma wealth. always good to have you with us. we heard from vice chair brainard today there will be some caution when it comes to raising rates given the previous hikes were filtered through the economy. what does this mean in terms of the economic recovery and how the markets will react next year? great >> questions and thanks for having me back. always great to be on here. and it comes to the fed i think the big concern -- i know what the big concern right now is. they're going to torpedo the economy peered they got it dead wrong last year when they said no inflation. or when it was it would be transitory. a textbook recipe for inflation. surprise, we got inflation. the problem now as it is full

speed ahead. the fed is going one hundred miles per hour on a wet road and they're looking at backwards facing data and they keep saying we are going to keep raising a matter what. i don't think that will be -- i think they will change their tune. i think there is going to be inflation that will come in a little more quickly because of the drastic measures that have been taken. in the short-term the concern and worry about how aggressive the fed has been will actually reverse and pivot going into next year. shery: is that also because you are factoring in a potential question -- potential recession? our question is where do you see the recession coming through? where could mean region over even a timeframe? >> we might be in a recession right now based on certain ways it is measured. the challenge i think we are facing right now is the supply chain issues causing a lot of

the inflation are starting to unwind. it is unclear if demand is slowing down. demand will slow down if unemployment goes up but we are not in that position. the big question is is this going to be hard landing or more of the softer recession landing. the highest probability outcome we see is it will be something soft, will be able to pull out of it quickly and maybe not in the next -- between now and year end about going into 2023, the risk is to the upside. haidi: that is obviously sector specific. hours looking at the ubs call when it comes to automakers. some of the worst performers. do you think that demand story has been fully apprised of across a lot of the consumer names? >> i'm not sure it has been and i do think at the broad market level there is still some risk because technology is still the

big dominant driver of the market levels. those multiples are still fairly high. i think we are seeing a shift from growth names into value names that takes some pain and rotation and time. i do think we could see certain sectors pulling the markets down. in the meantime i think value can make sense in here. we are at least close to being able to buy that. we are not doing it for our own clients. what we are doing is laddering in short-term -- flat is the new up in our book for the rest of the year. haidi: the treasury closure is quite interesting. i was looking at how you are adjusting your portfolio because there are concerns about how we are seeing signs of dysfunction and liquidity stress. is that something that potentially is a harbinger of something worse for you as well? >> i don't think so. that is part of our thesis as to

why this will not a hard landing recession. we don't need to see a 20% down even though some really smart people out there are saying that. we are not in that camp. we don't see the financial system close to a break in crisis like we did in 2008 which was a very different situation. we have a better functioning market. we have sin demand. we don't see things that are completely creating bubbles and out of whack. we are feeling pretty comfortable this is a more plain-vanilla type of recession. we have to live through it but then we will recover nicely going forward. haidi: always great to have you with us. join us on wednesday. we will be talking to the cleveland fed president, getting her views. this is bloomberg. ♪

haidi: a quick check of the latest headlines. mikal casino operators plunged in the u.s. after data shows sharp declines in tourist spending. overall revenue fell 26% on year as beijing's covid zero policy kept travelers at home. nissan is said to be ready to invest between 500 million and $750 million in renault's electric vehicle business. the company is viewing the organization as a chance to reshape their decades old alliance.

target global and will rock were among stockpicking u.s. hedge funds to report september losses as equity markets tumbled tiger global fell 4.4% extending its decline for the year to 52%. to date slides to 67%. coming up next, markup have it says a pivot is coming. that call and

vonnie: who are watching daybreak most really appeared fed officials are sounding a note of caution is the central rank heights rates. the chicago fed president says

-- to reduce the risk of an overshoot. the vice says data is key. >> in light of elevated global economic and financial uncertainty, moving forward deliberately and in a data-dependent manner will enable us to learn how economic activity, employment and inflation are adjusting to the cumulative tightening to inform our assessment of the path of the policy rate. vonnie: the imf and world bank chiefs are one a global recession is more likely as inflation forces higher interest rates. imf managing director says the strong u.s. labor market is losing momentum as higher borrowing costs spike. she says one third of the world's economy will enter into recession this year in. >> the risk of recession has gone up paired the total amount that could be wiped out by the slowdown of the world economy is

going to be between now and 2026. $4 trillion. this is the size of germany. gdp gone. vonnie: u.s. president biden has condemned what he calls the utter brutality of russian missile strikes on civilian targets across ukraine. the attacks mark a new escalation in the or and included the first strikes on kyiv in months. leaders are holding an emergency call tuesday. japan reopens its borders to dates of axa the visitors from 68 countries ending almost three years of pandemic travel restrictions. hopes are high for a rebound in visitor numbers as airlines ramp up international flights. bloomberg research expects it to take two years to return to pre-pandemic levels. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries.

this is bloomberg. shery: investors have been on edge about earnings, the fed and slowing growth around the world. the jp morgan ceo jamie dimon is adding to concerns saying they are -- saying the bouncing stocks could have a way to go. he is calling for a potential recession very soon. annabelle: just starting out from what he sees the u.s. stocks. he says the s&p 500 could drop another 20%. we have already seen the s&p 500 down 24% this year get not only that. he is saying it will be worse in the first 20% because that will be because the fate -- the rates will be rising. where are the main pain points likely to show up? jamie dimon says perhaps the pain or the first signs of panic could be in credit markets

whether that is an etf, in country. something we don't expect on a pair crises we would not have pretty did wade came from. there are a lot of issues for investors. the fed's qt program that is still ramping up. russia's were in ukraine. he sees the u.s. in recession in 629 months from now. -- 6 to nine months. haidi: keep wondering evaluations have adjusted efficiently for the upcoming earnings season. annabelle: analyst downgrading their forecast for the outlook but certainly a lot of concerns around company guidance and just how bad it will be because in the last six weeks or so we have heard from fedex, ford, nike, more companies reducing their forecast or having more muted outlook and we have seen quite a bit selloff not only in those

companies put the broader markets and more could be on the way. morgan stanley's michael wilson says until the deteriorating fundamental picture is fully priced in, the bear market is going to be continuing. the risk of the outlook, we have glittered inventory levels. there is also the stronger dollar. goldman sachs has been looking into this. with their finding is u.s. companies earning a higher risk -- earning a hundred percent of their income relative to those who have a portion of foreign sales outperforming and you could see that. that is the line in blue versus the one in white. haidi: let's get to next guest who says a fed pivot is coming. policymakers unable to ignore a housing market collapse, u.s. growth slowed down and 10 chile a collaborative on market

carnage. he is the chief market strategist. great to have you with us. stock markets pricing in. you can view these as potentially a forced pivot arising from a policy misstep if you were to -- to believe the commitment the fed speakers and fed itself has been dedicated to so far. if you take a look at the blue line, implying a low rate by may next year. take for and have percent by march. you take a look at market expectations and see potentially a market error? >> thank you for having me. there is no question whether the fed is going to pivot. it is 100% certain it will. doesn't do it ahead or after another 20% price decline? it does not make sense for them to pivot after another 20% because that would assume a calamitous recession, a lot of

pain in the real economy and them having to cut rates, restart qe which would negate everything they have done thus far. it is easier to pause and reflect as your introduction quoted vice chair brainerd as she was saying they are going to be data-dependent and start thinking the effect the accumulative tightening has had already. there are a lot of things breaking in the world and it is not happening in far east corners as it used two in the previous cycling -- previous data cycles. what is breaking like the -- that is going to alarm the fed a lot more than what have in the 90's. it took 12 day team months for those global problems to you circle back to the -- chess or go back to the u.s. shores. haidi: where do you see resilience around the world? we take a look around emerging asia, things feel different than

during asian financial crisis or the last time we saw a fed tightening. there have been no signs of taper tantrum's. >> that is absolutely correct. you see so much macro researcher looking for problems under various far distant places. emerging markets have been in a crisis since 2011. many since 2014. they did the painful work. they did the tenets of the washington consensus. they have actually put that into practice and including last year read not assume inflation is transitory. there are central banks that tightened on time. emerging markets are in a much better suited -- much better situation. whenever this volatility settles down, emerging markets will also lead out of the bear market in

terms of performance guarantees doing pretty well. it is about four to 6% compared to your yen and the pound which have completely collapsed. shery: as you said, they have started preemptively moving in ahead of the fed or other global central banks. when you compare this time, you are saying in past times of volatility in crisis, we have seen them from em shared this time it is from advanced economies like the u.k. what time would you compare to because so far we have been talking about the 1970's and 1980's in the pace of tightening? >> it is difficult to compare this to any other type. compared with the 70's, i'm guilty of those. i think i and on bloomberg search -- saying on in the rush of work, that is the one time you have think about it is an on

-- it is an uncreative data comparison. we don't have the same amount of deglobalization we are not -- it is not really a good comparison. it is nice to talk about it. it makes for a good op-ed. a more interesting period as the 1950's. the world was coming out of world war ii, there was not enough supply. baby boomers were starting to be born. parents came back from the war. they were looking to start families. there was a lot of consumption. the labor market was not ready to adjust. the late 40's, early 50's cell inflation jump up but it was not a prolonged decade-long period. shery: no wonder people are saying perhaps the inflation will go away much sooner than policy makers expect. do stick around. chief strategy for the clock

tower group. we'll be talking about the 20th party congress in china. this is bloomberg. ♪ zero-commission trades for online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year.

that's decision tech. only from fidelity. shery: take a look at how semi conductors finished. we are talking but the philadelphia semi conductor index closing at the lowest level since november 2020.

fresh restrictions from the u.s. and china's access to u.s. technology. this includes measures like restrictions on the export of some types of chips and tighter rules on the sale of semi conductor equipment to any chinese company. more chinese firms being at two a list of companies the u.s. regards as unverified. this coming at a time when we are heading toward the 20th party congress in china. a time when geopolitical, social, economic stability is priced for policymakers. still with me is the chief strategist at the clock tower group with any report suggesting president xi's domestic standing is stronger than many believe. what are you going to be watching out for and what is important to you in deciding what the future of china looks like in the next five years? > i think the future of china is already kind of set. i think the material constraints

makers are phasing in china are more important than the balance in trade we all spent way too much time in reading and writing about including my self. different factions battling for the premiership and so on. is it worth reading? i'm not really sure. what matters is the slowdown in china is not a product of a coal onyx disorder. it is a product of something far more endemic. something much deeper which is the private sector in china is overleveraged. how do you kickstart an economy? i don't think the committee make up is going to matter as much as what president xi and policymakers is a slowdown. even before the meeting we are seeing re-policy shift. we are seeing a policy start to ease.

there is a pickup in terms of housing costs. it is going to allow provinces to finance themselves. some you -- some movement on zero covid policy and finally on the u.s. china relationship. largely unreported in the west. shery: what does that shift into zero covid-19 policy look like? we are getting the latest from the people's daily newspaper saying the covid zero is sustainable. it is key to stabilize the chinese economy. >> it is interesting. you cannot shift the rhetoric ahead of the meeting should we have to give it to them on that front. you're not going to see a 180 degree turn. we did see on the national day of celebration over 200 policymakers not wearing masks at the celebration indoors which was the first time. the beijing marathon is going to be held after a two-year delay.

30,000 racers running without masks on. there are rumors hong kong to china to onshore china connection might have reduced quarantine requirements which will create a loophole for people like myself to go to hong kong when it opens up, do a brief quarantine and be able to visit friends and colleagues and clients in china. i think it is going to happen faster than most onshore commentators think. consensus right now which is pessimistic is mid next year. we think as early as q1 next year. maybe you could see seven meaningful changes on zero covid policy. haidi: we talk about china as being the bubble that never bursts. even if the bubble does not burst, there are all sorts of demographic systemic structural issues with this economy and society they cannot withdraw --

cannot be resolved with these policies by covid zero and the academy is joining the next direction it is in is not helping either. you talk about him having more domestic support than we know. hearing of all the factionalism. how fragile is that when there are large issues that need to be dealt with? >> i think this is not necessarily a bad thing. if china is focused on domestic politics, domestic economy, on a slowly deflating bubble, that is a china that is going to care about its export markets. a china that needs offshore demand to allow factories to continue to produce manufactured goods. it is china that is going to take a step back and think about the relationship to russia, how quickly foreign demand was cut off. not necessarily by governments.

it was sort of like russia got canceled because it invaded ukraine. what we are seeing is china's leadership is a -- the foreign minister made a surprise visit to new york the message. we are hearing was delivered was china understands the problems russia has created not just for the world but for itself as well. these are important moments. does not mean a full talk is coming. takes two to tango. if chinese aggression as a risk can be taken off the table, i think that is significant for investors. haidi: that strategic competition is going to be at the core of the global economy for so much time to gum. -- time to come. chief strategist at clock tower group with us.

as we heard, enforcing the idea that covid zero is here to stay. we are see national covid cases arise in china. fences are appearing around some residential compounds. local authorities are taking few chances of outbreaks so close to the party conference that gets underway on sunday. we are seeing the latest glance from the people's daily saying people must stick to the covid zero policy and that it is a sustainable way forward for growth. >> i agree with marco. what he said is there are signs of relaxation generally speaking but nothing is going to happen between now and the party congress. a 180 degree turn on covid zero is simply not going to happen. it might even get worse and that is what i have been saying for some time as we head up to the party conference which starts on

sunday. you're going to see municipalities and provincial leaders worried they could get blamed if they are the resurgence of covid. that is what you are seeing across shanghai and china. districts have been restricted to their compounds. there were a total of 1878 new cases found on sunday after a weeklong holiday. people coming back and there are new cases shanghai had 34 new cases reported sunday. two found outside the quarantine system. several districts have been had -- found to have barricades up around residential compounds. there is one city that did not have a single covid case but the entire city of 40,000 people has been put into law because authorities are worried of those returning residents from the holiday could spread the virus to them. that is the extreme measures authorities are taking across china. shery: japan going in the opposite direction.

fully we opening borders to the taurus. what do we know? >> as of today, japan is open. it is one of the last remaining rich nations to open up fully. inbound tourists from 68 nations can go to japan as of today without visas. the japanese authorities want to take advantage of what you are seeing on the screen. yen at 145 and change to the dollar. low inflation. they want to see and most economists are expecting the pound tourists spending to surpass the boom we saw in 2019 pre-pandemic levels where there was a record number of inbound tourists in 2019. the borders closed for nearly three years and japan has been stuck with nothing. the borders open up as of today. we will have to see and revisit this and a years time and see if they did get the big boost in pent-up travel shery: demand to

japan. we'll be watching those opening stocks. our chief north asia correspondent. this is bloomberg. ♪

shery: september turned out to be a rough ride for many investors and two well-known hedge funds that specialize in stockpicking. su keenan binds us with the

latest. some of the funds went by these firms lost more than half of their value. su: we call hedge funds the smart money because a lot of people pay them a lot of money to manage their portfolios. it was tough. cap has been a washout. the s&p 500 was down 9.3% last month. people close to the matter say these big funds got hit ready hard. to go global saw 4.4% for the end of the month. we are told the only fund fell 9.5%. well rock brought 6% in september widening its loss of the year. some of their billig death there big holdings include intuit and

microsoft. that is the largest holding. you will see a sea of red on the market drawdowns and volatility. it is almost like a halloween chart. it really is an ugly picture for these professional money managers. haidi: there is also no new chorus of voices saying stocks could fall further from here. su: he is saying they could be down 20%. a billionaire hedge fund manager told cnbc stocks could fall another 10%. things may already be in recession and earnings outlooks continue to be revised downward to so analysts are saying buckle up. one of the biggest hedge funds out there, is pouring billions into a new yet to be named

stock-based fund scheduled to launch next year. millennium's flagship fund is up 9.7 percent through september. it's flagship fund has a lot of macro place. the bet on the interest rates. they bet on currency place. interesting they are now getting into stockpicking -- stockpicking. haidi: that is it for daybreak australia. daybreak: asia is next. this is bloomberg. ♪

shery: you're watching daybreak: asia coming to you live from new york, sydney and hong kong.