haidi: you are watching daybreak asia. we are counted onto the market

open in tokyo and -- we are counting down to the market open in tokyo and seuol. traders are on high alert for a yen intervention as the currency markets to 152 the dollar. china's congress he the blame in the delay in release of key economic data. annabelle: the asx 200 trading in the green, we had 99 percent of stocks on the s&p 500 in the green. in terms of what else we are keeping an eye on, the tech sector is in focus as we had the best session for the nasdaq sent july -- since july. the aussie dollar is in focus, it has reversed most of his

earlier losses. you can see that we are unlikely to go beyond that given what we do have the rba meeting minutes to do in the next hour and the yen has been beginning for its ninth straight -- weakening for the ninth straight session. still, we are being supported by the pullback for the dollar this morning. other factors we are watching closely, if anyone had not thought inflation was not front and center, think again when you see new zealand seeing inflation numbers coming in this morning, still at 32 year highs. reinforcing that the central bank in new zealand is going to be forced to keep hiking aggressively. yuma though the 10 year is reflecting the moves, we saw the guild in the previous session, we had the fiscal policy pivot in the u.k. shery: we got the reaction in

the u.s. with the treasury rallying, the ten year yeld falling to -- yield falling to 10%. they have lifted the stock market, that is how they have had a rebound from technical levels as well. we are seeing wti prices gaining ground but we have not seen movement in the new york session. a potential pullback in demand given what we saw from a that they are doubling down on the covid zero policy. it seems to be risk on, we are seeing wti gaining ground. haidi: we saw the moves to the upside when it comes to trading. the u.k. chancellor scrapping most of what is left of liz truss' economic program. let us bring in garfield

reynolds. it has been a wild ride for u.k. assets. we basically are back to where we began. where do we see guilds and the pound trading here? >> we are and we aren't. things have settled down and we are closer to where we were before they came out with the many budget. it is not just for perception. this is going to remain a risk premium. baked in, all of u.k. assets for at least some time to come. liz truss is still the prime minister, she ran on -- she tried to fulfill what she had said to the conservative party. this was the sort of thing she was going to do. now she has to bring in someone who is a rival for the leadership that she runs.

she is on doing everything that she said she wanted to do -- undoing everything she wanted to do. the uncertainty that remains when it comes to u.k. assets and when it comes to the pound, how stable can it be, how far away are we from the pension funds, the gilt market may bear the scars going forward and you have fresh volatility. shery: we are not seeing that much volatility, although when it comes to the japanese yen, we are training 88 very narrow range. 1.49 level has been topped. where do we go from here? >> the easy answer is we go towards 1.50. it is a magnet that, a force of gravity. it is going to move to at least

test 150, it depends on what the data mix and fed speak makes is going forward towards next month's federal reserve meeting. some thought that we make get an acknowledgment when the doj meets, the yield curve control has to be tweaked or as some point that may bring some relief for the yen. the base case remains, 150 is on the radar and traders are anxious to watch for any signs of intervention from the japanese government after they intervened wants to slow the yen . not much volatility right now, plenty of anxiety under the surface. haidi: that was garfield there.

speaking of anxiety under the surface, china's decision to hold back as gdp data due on tuesday is being blamed on the party congress underway in beijing rather than fear that the numbers may underperform. let us bring in stephen who joins us in hong kong. there is a fair degree of suspicion when something -- when it comes to something like this. there's also a reason to not want the distraction right now. >> it would be pretty bad data if you are delaying gdp today and retail sales and energy production, housing prices, housing investment, all of these were due and other data today. we have the word late yesterday, short notice that all of the state it would be delayed indefinitely and no reason was given. it is a logical human nature assumption that given the

second-quarter gdp which was barely above zero, may be third-quarter is not a good look at a time when the party elite are holding their congress. it could be a distraction or diversion from what xi jinping would like to talk about. the successes of covid zero as he did on sunday. reality is it is because it would be a distraction for all of the party individuals from around the country to pump out their economic data before the third quarter at a time when they need to be studying word for word character for character of this man's words and the report he delivered on sunday. jeremy stevens is a cheap china economy and he says ideally it is not a good look for china to delay the data but not surprising given the importance of the congress. we are expecting a rebound from the gdp to an average

consistence -- consensus of 3.3% . there is a pent up demand because of the week second-quarter due to markdowns in shanghai and already earlier monday, from china's economic planning to commit, they said third-quarter growth -- planning department, they said third-quarter growth rebounded. we are not back to big double digit gains in gdp by 3.2% is better than 0.4%. there are headwinds from property to covid, that a lockdowns and market stimulus is expected to come in the coming days or weeks including proposals to encourage companies to buy back shares and ease curbs on short-term transactions. some measures are propping up the equity markets that have slumped. shery: investors got spooked, they released numbers in 2017

while the party congress was happening. people are a bit scared right now but you are putting the things into context for us in china. let us turn to u.s. banks because there is a height of the earnings season, a rosy picture of the u.s. consumer, to bring in su keenan. -- we bring in su keenan. we have not seen that in the results right now. >> they are not talking about it, they are saying the opposite, the cfo of the bank of america is saying that they are not only seeing signs of consumer stress, they think that the numbers of bad loans are so low they are squinting to see a change. the bank of america is beating expectations thanks to the consumer spending on reddit cards, it jumped 13%.

that explains the green on the screen. the cars repossessed in a month has been cut in half. again we are continuing to see strength in banks. a drop in the bloomberg because of investment banking that continues to be the weak spot for these banks with the bank of america which was down 46%, that is less than expected but it shows the drop in global dealmaking and ipo's has really hit these banks hard in this particular area. goldman sachs reports next that they are up on tuesday, u.s. tuesday, what we are expecting is for the ceo who has been at the home for four years david solomon to make a major reorganization announcement. the third since he has been at the helm. it will according to sources undo the signature moves he made back in 2020, global banking and markets, it will merge the money-losing consumer retail

unit that david solomon personally had champion but investors did not seem to like. it will merge that with the asset and wealth management and there will be a lot of leadership changes as well. look at the red on the screen for year to date for a moment and so many other banks and the explains why goldman is making this move perhaps at this time. back to you. haidi: we have been following the movements in the credit suisse story. they are considering starting the sale of the u.s. asset management business. >> bloomberg reporters have been reporting on this story, several stories out today, they are among the most read, bloomberg reporters finding that the battle's was a way to tear down after a series of scandals and losses and they are considering a sale of their u.s. asset management business according to sources. it began as a sale process for

the u.s. operator, according to those closest to the heart of the matter. you are selling securitized parks groups which is why bloomberg is reporting from parties who include apollo and also bloomberg is reporting there is a number of other firms including financial and six street also interested. we saw repository receipts, it was up 8%. see credit suisse is down more than half here today. -- year to date. haidi: let us get you to vonnie quinn. >> russia has hit medical infrastructure in central kyiv. authorities say four people were killed as they damaged several houses and sparked a fire in a residential building. the ukraine resident appraised troops who shot down 16 incoming

drones. the united nations is discussing how to handle russia using iranian drones in ukraine. they are gathering evidence to determine whether russia is using iranian weapons in ukrainian cities. u.s. regulators are investigating the field crypto hedge fund three arrows capital. they are looking into whether the money manager misled investors about its balance sheet and registered with the agency's. three arrows filed for bankruptcy in july after the collapse of a blockchain that led to a broader selloff in digital assets. texas security investigators are f investigatingtx and its founder. they are trying to see if they have violated state laws. ftx should pause asset

purchases. global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. haidi: we speak to about esg investing in china and beijing's climate goals and a flagging economy. coming of first, wells fargo is urging people to be patient for price pressures to ease after the rate inflation of the 1970's. this is bloomberg. ♪

>> anyone sitting on debts are going to be in trouble because of the interest rates. as interest rates in america .29% -- go to 9%, simply because if inflation is 8%, the playbook says you need to raise rates higher than inflation. of course, that will go out the window if the cpi goes down. i do not see that happening anytime soon. shery: that was mark mobius speaking to bloomberg tv. our next guest says corporate margins and earnings could be exposed to inflation's uneven decline. let us bring in gary schlossberg , global strategist at wells fargo investment institute. you are expecting labor and material costs are to come down as quickly as other sectors of

the -- not to come down as quickly as other sectors of the economy? gary: we think wage inflation will be running at a pretty good clip. we are still dealing with shortages as an outgrowth of the pandemic. we do see inflation coming off of the boyle. it will be slow and choppy as it has been for the next couple of months. as of improvement will be more noticeable over the course of 2023. it is not put margins under pressure as we saw in the first half of the year. shery: given the challenges we have seen it with the earnings bar being lower significantly, does the earnings estimate coming from wall street price in all of the challenges for the rest of the year? gary: not yet we do not believe.

we have been quite optimistic throughout the year. they are coming down now, but we are still a bit ahead of the curve. we have to be more cautious and earnings estimates have been below the consensus for quite some time. there is further downward revisions to come as we move through the wars of the slowdown through the first -- worst of the slowdown through the first half of the year. haidi: you talked about the inflationary impact, we got the new zealand inflation numbers. are you suggesting this could be quite elongated? where do you find some of the average opportunities when you are looking at which companies get affected or not affected in a more outsized way? gary: some of the services companies will be getting exposed to the pressure from rising labor costs and labor productivity. we scene opportunities open up

in robotics, a strong investment there what we think will continue for a time. the more conservative areas of the economy, less sensitive to the economic cycle and therefore is pricing -- its pricing power should hold up better, we find a good defensive area of the economy. energy we have a favorable view towards because of the fundamentals of the market there. haidi: tech is an interesting one. do you expect with all of the headwinds and the most recent bad news story when it comes to the chip sector that there is still value in opportunity in the main term? gary: in the medium-term, yes. we look beyond the short term in respect to tech. the lord financially strong tech -- bart financially tech

companies have developed a result a financial health over the longer term and medium-term, the opportunities created by the digitalization of the u.s. economy and the economies overseas. we keep the market of t -- that will keep the area of the market quite profitable. shery: is this the expectation that anything that happens in developed economies especially here in the u.s. will be much more for the -- much worse for the developing economies? gary: if performance will become more dispersed, for emerging markets, generally, and economies overseas, we think as combination of a global recession or something close to it and they geopolitical disruptions.

even with a gradual recovery or a moderate recovery where it is creating a difficult environment for emerging markets generally. within that segment we do think that performance will become more dispersed as we go through 2023. haidi: always great to talk to you. you can get a roundup of the stories you need to know to get your day going in today's edition of daybreak. terminal subscribers can find that i dayb -- at dayb . customize settings that you get the news on the industries and assets that matter to you. this is bloomberg. ♪

haidi: a quick check of the

latest business flash headlines this hour. byd expects record sales volumes. it is benefiting from making his own factories and chips, avoiding supply chain snags. that income is expected to rise 265%. still lantus -- stellantis may stop making cars in china. the ceo says the producer of the cars may implement an asset might strategy for those brands in china. he used the same phrase about closing the chinese jeep plant. shery: in korea, the finest ministry will discuss adopting 30 year government bond futures. we will be watching trading in the up markets there.

we get a reaction on the be ok in money supply -- bok money supply. and then there is a meeting on strengthening competitiveness in the parts and materials industries. in japan, softbank is off selling its shares in thg. this is after a share price collapse over the past year. kuroda is set to appear in parliament today, we will be going through his comments to see where he stands on the loose monetary policy that we saw in the last few weeks of his doubling down on. will keep an eye out for intervention as the yen slides down to the 150 level. we see it at 149. the dollar index is under

pressure. the cnh is at the 720 level. multiyear lows. haidi: we have a big interview, an expose conversation with a black role -- blackrock vice, how he is doing the turmoil in the u.k. and structuring in credit suisse and their outlook when it comes to asian markets. the times are on your screen at the moment. a la mora head, this is bloomberg -- millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing, the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there. and this is the perfect time to join them... add a line to your existing plan, or see for yourself how easy it is to save by talking to our helpful switch squad

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shery: bank of america reported record interest income of 13.8 dollars in the third quarter, as that reap the. benefits of rising rates. the ceo told us consumers are still spending.

he is seeing few signs of weakness or stress in the u.s. economy. >> the consumer spending, are they doing things that drive the u.s. economy? spending for the third quarter was 10% higher than it was last year's third quarter. spending for the first couple of weeks in october is 10% higher than it was last october. now, what we told people is, you are seeing it slow a hair. 14% or 15% early in the year, top percent and now 10%, which is what people are trying to do, get the spending down, inflationary pressures down, but it is still strong. that is one way to think about it. another way to think about it, is consumers have money in their accounts to spend. in september the account balances were flat, over where they were in august. that is multiples of where they were pre-pandemic. they hold their own. you can see the cash flow of customers, not making a

reflection, but even customers while lower income levels, we can see cash flow is positive. run increases can slow that down -- rent increases can slow that down. in the third quarter they continue to have more accounts compared to before the pandemic. credit quality at bank of america in our consumer books is strong across the board. the payment to liquids these are much slower than they were prepended make -- delinquencies to accounts are much lower. there much lower than they have been. consumers are spending. they have money. they are unemployed cash employed. the on it -- on them -- they are employed. they're trying to slow down american consumer which is a thing. >> you cannot promise what will happen next year. but, a lot of economists are saying the reason consumers are strong is because the balance sheets were so strong coming of the pandemic. at this point, you'll see the

balance sheets turning down as we get into next year? >> we'll see it yet. -- we don't see it yet. if you look back when we did the earnings call, the consumers are getting knocked out of the game and they are spinning their cash. six month later the money is still there. people are over anticipating the future. we saw productions -- projections and our research group is one of the best in the world, the third quarter is positive, third -- fourth quarter is negative, third quarter 23 negative, 1.5% gdp, negative growth rate. we are predicting a shallow economy. embedded in that, if you look at how we settle our reserves, we will have 5.5% unemployment, i am not sure that will happen, especially at this quarter. those are the conservatives we built our balance sheet on. if you look at the consumers, there aren't any signs. they are not slowing down or stressed yet.

that will have to be happening in order for there to be a deep inflation -- recession. that's what keeps the economy strong. >> you take pride in the bank of america research unit. let's assume the numbers are exactly right. it could be better or worse. three down quarters, 5.5% unemployment. what does that do from your loan loss provisions? what kind of revisions will you have to make? >> we are always counting on the future. that is the way the rules work. you build reserves and we built 400 million this quarter, which is 60% of the base case which is the average of economists. when you blend that together, it implies they have high inflation and high unemployment in them. you blend it together, the core, what we have at the end is 5% unemployment for the first quarter of 2022, and more than 5.5% for next year. your provisions will go up

against that backdrop. at one point you will see the other side of it emerge and that is what happened. we put up a lot of reserves and we took them back in, once we saw the impact, because of what the administration didn't what congress did and what central banks did -- administration did, what congress did, what central banks did. on the other hand, the consumers are growing in a stronger shape than they did in 2006 leading into the great financial crisis. haidi: that was the bank of america and ceo. >> speaking with bloomberg's david westin. one of the factors that help the u.s. stocks push higher in the previous session. this chart shows the s&p 500 rebounding off of the key level, the orange line. you can see when we push off the point in the past, that has led to a a rally of u.s. stocks in the weeks and month ahead. a lot of strategists, including those at morgan stanley are

saying we could see a technical rebound here and that stocks are looking right for recovery. even though the fundamental picture has not changed. you have the fed that needs to tighten in the face of inflation and there's a lot of earnings to come, including for can -- from consumer facing companies that may shed light on the u.s. health of the consumer. in asia, if you change the set up, 30 minutes into the trading session for australia. we are 1.5% upside. nikkei futures in singapore also coming online, looking to a strong open their. the yen is still in focus. it's very close to the key 150 level, that could be from intervention from authorities but it is looking flat. but that could be what is happening in the dollar. we are seeing it pulling back slightly. inflation is a wash for us, particularly in new zealand. the cpi coming in at a 32 year high. the rp and z, 75 basis point

hike in its next meeting. treasury yield or bond yield. haidi: let's get to vonnie quinn. vonnie: u.k. prime minister liz truss says she will stay in her job for the national interest. she told the bbc she wants to accepter her sans ability and say sorry, she plans to leave the conservatives -- lead the conservatives in the next election. turss is planning to hang onto power after being forced to reverse course in her economic reforms. the u.k. chancellor has ripped up of what was left of her economic program. he is scrapping track -- tax cuts and signaling scales for household energy bills to restore order to public finances. with earlier u-turns, his decisions reverse the $51 billion in tax cuts truss announced in september. >> i remain confident about the uk's long-term economic prospects, as we deliver our

mission to go for growth. but growth requires confidence, and stability. and the united kingdom will always pay its way. this government will take whatever tough decisions, a nest -- are necessary to do so. vonnie: china has delayed the release of its third-quarter gdp data because government officials are gathering in beijing for the party congress. they did not give a reason for the change and provided no new publication date. retail sales and home price at data is delayed while trade figures to last week -- due last week are yet to be released. 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: from zoom, to carvana and moderna, new companies were minted in the height of the pandemic but some have faded. emily joins us for more.

we've been crunching the data and it's a bit like going back in time. you take a look at the rise and fall of these fortunes. it's i watering. >> it is. we talked about hwo -- how cheap money, supercharged wealth of the pandemic for a select few. when you go back and look at it, the numbers are astounding. the richest people in the world, minted money at an unprecedented rate. what we have called the covid billionaires, which is that subsection of the bloomberg's billionaires index, which made most of their money from related things to the pandemic, like the stay at home trend, like zoom. think about things like the moderna vaccine. their fortunes sword faster -- soared fast. shery: are there any differences between covid billionaires and

the ultra-wealthy large parts of the world moving on from the pandemic? >> that's where it gets interesting. we talked about these extraordinary fortunes that were minted by the likes of zoom maternal, etc. -- moderna, etc.. these have come back to earth. take andy garcia who was a cofounder of carvana, the used car sales thing. since its peak, he has lost 82% of his wealth. these are huge numbers. this crash and crumble a fortune is not like anything we have seen in decades. he have to go back to the tech crash -- you have to go back to the tech crash and even the great depression to see this crumbling a fortunes. they are still up on pre-pandemic for most of these people. the rich have made a lot of money. but those who have made it on the back of the pandemic have come back to earth. haidi: we know covid-19 was brutal when it comes to you

being in the wrong tax bracket. since then have we seen any improvement when it comes to the outlook for ordinary workers? has gotten worse with rising rates and higher costs? >> think back to the start of the year. we were starting to see things, look back with the economy reopening. as inflation got out of control, things have really started to get worse for the average ordinary person. central banks around the world are on a mission to hike interest rates to get inflation back in the bag. we talk about the energy price shots. these are financial times, which made extraordinary fortunes and problems. for the average middle-class, things have been tough. shery: emily cadman joining us from sydney. president xi says that china will not rush its clean energy transformation. we will discuss the green goals, next. this is bloomberg. ♪

>> we will work to the goals of reaching peak carbon emissions and carbon neutrality. based on china's energy and resources, we will advance initiatives to reach peak carbon emissions in a well-planned away

in line with the principal of the new, before discarding the old. shery: china's president speaking at the communist party congress on sunday. now, china is the was largest emitter of greenhouse gases but it has also invested more in clean energy than any other country. let's track the road to mesirow. -- net zero. could we expect china to make a more ambitious commitment in the upcoming cop 27? >> no. i don't think china will issue a more ambitious target. this is because china has already issued a a very ambitious target before, 2030 carbon peak, 2060 carbon neutrality. what china does now is domestically, to coordinate different sectors to issue plans and carry out the investments to achieve their goal. sometimes it also calls to

wisdom to decarbonization. the second reason is china needs technology breakthrough to achieve the goals. what we have, for our wind turbine and solar panels, those will not be enough to help us achieve carbon neutrality. china is now actively testing new technologies, like hydrogen, ccu us, compressed air and without any solid improvement of these technologies, china will not likely promise one the future. haidi: the speech was interesting. president xi saying they will not rush the transition. they will not stop burning fossil fuels in the short-term. is this because of an economic drag we are seeing? what does it mean for the broader global effort to try to decarbonizing in time? >> yeah, this is, basically what

president xi said was based on the current energy ames -- makes of china now, what we have is a reliance on coal. china's building winds. so, china has already made a very ambitious target. the target from all of the promises combined will build more than 800 gigawatt of solar from 2021 to 2025. that is more than what china's debuted by the end of 2021. you are right. china is facing some headwind for the economy, but that is why china's relying more on their renewable investment to boost its economy. haidi: bloomberg, head of research. let's bring in the director of

-- let's bring in saskia kort-chick. i'm curious to get your takeaways from the issue of climate from president xi. is there -- if there is this no hurry to achieve the transition goals, what does that mean for esg investment and the prospects for getting to decarbonization goals sooner rather than later? >> thank you so much for having me today. overall we expect strong outlooks for esg investment in the region. if you look at the growth of esg integration in asia from 2018, they were around a 38% of asset owners, growing up to 70% in asia. that's remarkable growth. as asset owners and managers integrate yesterday, which is looking at the financial neutrality of environmental,

social and governance of companies, we expect further commitments in the area. as asset owners and managers evaluate the benefits of doing so, they will assess how companies are reaching their climate and net zero targets. haidi: what about china? as one of the biggest economies, there had been some hope that they would be really driving regional leadership when it comes to the energy transition. is it a part of a broader issue where we see the economic slowdown affecting a number of economies, now preventing the transition from happening in a timely manner? >> we don't expect any strong policies coming out of the current party conference. we are looking to march 2023 to get further guidance from china on how they will reach their 2030 peak emissions starting, as well -- target, as well as their net zero target. we believe china will continue

their commitment to the targets. the role president xi played in communicating these targets, we don't think they will be immediately deviating. if you look at the role of electric vehicles, which are an essential part of driving decarbonization. in 2014, president xi talks about china becoming an automotive power. today one third of the ev's seals are in new electric vehicles. china has over 4 million charging stations which is double compared to last year. in august there was a commitment of a wave of 14 billion for electric vehicles. overall, we see these as little indication that china is committed to reaching its communicators net zero targets. shery: from last year, we have started seeing beijing returning to coal and they have tried to expand exploration of oil a, gas

and resources as well. looking into march, 2023, was sort of guidance are you expecting? -- what sort of guidance are you expecting? >> further guidance of industries and sectors and how as that weasel have to carry out policies. -- how i so easy will have to -- soe's will have to carry a policies. >> shery: what sort of esg integration do you see across asia? the economic slowdown could be one factor on the ongoing energy crisis as well -- and the ongoing energy crisis as well. >> for asia we remain confident of the esg integration. we are analyzing environmental, social and governance factors. we believe that can contribute to positive risk-adjusted returns. if you look at a large global agricultural company, you want

to understand how it is managing its human capital in the research and evolvement program. you want to understand that a company that relies heavily on the agricultural industry, how it is managing and how it will be impacted by climate change, as well as how it is preparing for the transition risks, such as regulatory changes and carbon credits and tax coming into place. we believe that the growth in this area will continue, as there a better understanding of what esg integration means and how it can help deliver financial returns for asset owners and clients. shery: saskia kort-chick directorate esg research at alliancebernstein, australia. be sure to tune in to bloomberg radio to hear more from the days newsmakers, getting analysis from the daybreak team,

broadcast live from our studio in hong kong. listen through the app, radio, or bloomberg.com. stay with us. ♪ if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity.

haidi: a quick check of the latest business flash headlines. bank of america ceo says the u.s. economy is being propped up by consumers, or not showing any signs of weakness.

he says the lender will maintain it its headcount as it looks to gain market share. we spoke to bloomberg -- they to bloomberg after bank of america reported record interest income rising to $13.8 billion. saudi arabia is weighing investments and other businesses at swiss. the neighbor see opportunities to take advantage of depressed values. creditors rose in new york, is less than two weeks away from revealing details on its restructuring. softbank is offloading its stake on thg, after chair collapsed in the past year -- share collapsed in the last year. the thg stake was over $567 million when it first allowed -- announced the shareholding last year. the value has fallen $40 million. shery: these are some of the other stories we will you

watching. asia's major tech stocks could rise after the nasdaq 100 posted its biggest gain since july. we are keeping an eye on all of these stocks across japan and south korea. also shares of miners and steelmakers in the limelight. they could move, after we got warned of the downside risks as the global economy slows. an asia aluminum shares, they could trade actively. the material fell after inventories tracked by the london metal exchange saw the biggest percentage gain in 19 months. haidi: let's take a look at what we are watching when it comes to fx. intervention is where we are at, when it comes to the focus. from the finance minister of japan, commenting on these moves, they cannot condone speculative moves.

appropriate action will be taken against speculative moves on the yen. they're watching the market with urgency, but declined to comment on the possibility of stealth intervention. there's some degree of caution, analysts say in the amount of intervention they can do without support from the u.s. we are seeing the yen trading perilously close to the 150 level. coming up in the next hour we get more market strategy. we hear about the constructive news when it comes to china. we will be talking about the unexpected delay in the gdp release. ♪ ♪♪ ♪♪

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rally for chinese markets open. we're trying not to be cynical but it adds a level of nuance and uncertainty. we are watching the yen close to the 150 level, we have heard from the finance minister calling out these large speculative moves and they won't be tell it of -- tolerated, will we see another round of intervention? annabelle: was coming out in options is 151 could be the level to watch. we will get to that in just a moment. japan and south korea, the start of trade for cash treasuries. we saw that big fiscal policy pivot in the u.k. and huge drop we had. the yen is in focus, we are eyeing the 150 level. fairly steady, seeing a pullback

in the dollar. options markets are pricing for interventions, perhaps around 151. we had the big lead in from the wall street session, 99% of u.s. stocks in the green. that's change to the open because the nasdaq is rallying the best day since to lie, facing gains though the direction of the kospi should be a bit of welcome relief for officials because we have local media saying it could band shortselling if the kospi does drop below the key psychological 2000 level, eyeing >> happening in the korean won dropped the most by more than two weeks in the previous session.

we are seeing risk time -- on. i.t. stocks are outpacing the index and i'm was happening in the aussie dollar, we are the $.63 level perhaps we will get beyond that given we have meeting minutes due this hour. oil is struggling for direction but slightly higher. haidi: our next guest is adding exposure to china. asian equity senior investment director, great to have you with us. this is the elephant in the room. was going on with the delay in gdp, how do investors read into this? guest: the short answer is we do

not read into this that much with all the lockdowns, gdp numbers will look below -- pretty low. there is a bit of a disconnect between was happening at the macro level and micro level. we look forward for the numbers to come out. haidi: what are you looking at when it comes to cautiously constructive opportunities in china or hope that covers positioning, what are you looking out for? guest: we're looking at fundamentals of the companies, earnings growth companies are generating and we talked about

how gdp numbers of china are declining below 5%. they are on their way to meet expectations. they are selectively depending on where earnings growth is quite healthy. 20 area is on the green economy side. the spending regardless of gdp is a target and we have seen strong acceleration. shery: is there enough confidence in your view on not only the china story and also the broader asia story? guest: a lot of this is how

china and asia is an unloved place at the moment, boiling down to sentiment where there are pockets of growth, you look at india throwing very strongly benefiting from the economy, underinvestment in india for the last decade. we are seeing a strong growth story. moving on to asean, it has been unloved for many years and benefiting from a tailwind. even the overall environment, we have to look higher in be discerning with the quality of companies.

shery: what are you expecting for earnings season in the u.s.? what will it look like in asia and what are you focusing on? >> we are not expecting any negative surprises. it's too early we will see positive surprises given the backdrop we are in. teri to say earnings have gone through negative earnings given there were high expectations early on the year. interesting observation that because pressure has come down and this is because they have repriced raw material pressures coming down.

that should help. haidi: great to have you with us. we are hearing from the reserve bank of australia, the deputy governor speaking in sydney. talking about the rba expecting to lift rates and will do what is necessary to return cpi to target. the rate trajectory has been steeper and more frequent board members are something of an advantage, interesting talking about how the policy rate trajectory has been steeper despite the quarter-point hike. we saw the rba slowing the pace of rate hikes. it will be interesting to see how they progress from here,

harder than expected pushing according to kiwi bank the rbnz to raise 75 basis points. you can continue to watch michelle bullet speaking on the bloomberg. the two vonnie quinn. >> russia has hit critical infrastructure with a suspected iranian drone. authorities say four people were killed as they laid -- damaged several houses and sparked a fire. s lasky -- bloated mere zelenskyy praised troops. hold. eu nations have begun reacting to iranian drones. the block is gathering evidence to determine whether they are using iranian drones.

new zealand inflation remained near a 32 year high inflation ease slightly. the central bank is not expect inflation to return to its target band until mid-2024. reg leaders are investing i felt crypto hedge fund. they're looking into whether the money manager violated rules by misleading investors and not registering. three arrows filed for bankruptcy in july after the collapse of a blockchain lead to a broad selloff. 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. shery: focusing on asian tech stocks. what are you seeing?

annabelle: for the nasdaq, best day since july, the likes of amazon and nvidia of 6%. my you chip stocks in korea -- watching chip stocks in korea. take a look at another sector in the green, the uranium space because we had germany confirming it will extend the lifetime of its three remaining plants until april next year, we're seeing uranium stocks rising, so moving to the metals space, rio tinto reported a drop in iron ore shipments. the outlook is not affecting other iron ore stocks in asia. in aluminum, we saw that metal drop in the previous session, slightly higher, concerns around

oversupply. we are seeing most sectors in the green with the exception of energy. shery: china is delaying the release of gdp numbers but a top forecaster is joining us later to offer his predictions. first, liz truss is clinging to power after hundred chancellor tore up what was left of her economic reform plan. a look at the fallout is next. this is bloomberg. ♪

>> the central responsibility of any government is to do what is necessary for economic stability. behind the decisions we take and issues on which we boat -- vote, jobs and families depend on. we are a country that funds our promises and pays debts. when that is question, this government will take the difficult decision necessary to ensure there is trust and confidence in national finances.

haidi: u.k. chancellor speaking in parliament after scrapping most of what was left of the economic program. it's in bloomberg fx and rates strategist david for how currencies have been reactive. forcing the uptick with the pound. is it a u-turn if you have half a dozen of them? if you see u.k. assets, -- reporter: assets have recovered, not fully recovered. if the 10 year and 30 year. it's to be expected given the big u-turn. that's not a full u-turn.

they're still going to go through. there is a $36 billion pound, budget hole these to be filled in. will weigh on sterling and u.k. gilts moving forward. the key thing is not only inflation data, also the budget speech, what is outlined in how much he can balance the books or not. the bank of england and markets looking for 100 basis point hikes still. shery: across asia, where watching the japanese yen. little bit of strength, but it's very close to getting to the 150 level against the u.s. dollar. reporter: that's a psychological level. to justin while the dollar was

weakening amongst the risk on attitude, the yen struggled. and hung around lowest levels since 1990. if u.s. yields push higher in the kneeling term -- near term, we have data next week there will be very key. you expect more pressure on u.s. yields and you have to think the 150 has to be hit soon. is it growing or how quickly does he get hit? the ministry keep saying when he took control nonspecific level but assess volatility. i think ryan's, does it class us -- the speed of the movers one thing i am looking at for one, laugh will intervene. haidi: let's take a look at

european futures. we saw a good bounce when it comes to bargain-hunting, given european equities took a nosedive, we have seen it down 20% this year. this is broader hawkish and us, we saw the raft of tax cuts dropping some of that optimism in european markets. shery: the tax-cut reversal is a step in the right direction and british institutions. >> we are a top mortgage lender. what is happening is affecting

consumers. it's a period of economic stress added with geopolitics. businesses need to get the balance right between what is urgent and important, at the same time, making sure we lay the foundation for growth. fiscal policy has to be aligned with monetary policy and that is the balance that is not right in the u.k.. pleased by the steps that have been taken. it's important to give stability as much as we can. we are a big investor in u.k., that's a very attractive place to do business and the steps

taken are in the right direction. >> talk about the global situation economically. he tended world bank meetings -- you attended world bank meetings. talk to us about the bank of santander. central banks are raising interest rates, slowing economy. >> levels we have not seen in decades. let's important, this has profound implications for businesses and society. i like to say this is a disease, not been cured with vitamin c.

come from washington as a leader of a bank, i can see that this is different from what we had in 2008. incredibly important. thanks have been part of the solution. if you look at the last five years, core capital is 8% to 12% . we are ready to support our customers. >> how are you preparing? >> countries like brazil and mexico. the current thinking is there is less debt.

one of the few currencies are of 5%. when i explained is there is a scale, we have a strength and balance sheet in a very significant way as we have been during covid. >> is inflation hurting your bottom line? >> we have had negative rates, that's not normal. thanks will have higher earnings. we should do better. haidi: the bank of santander executive speaking with david westin.

we have another big interview coming up. exclusive conversation with the blackrock vice chairman, found that how the biggest money manager use the turmoil in the u.k. and get their outlook across asian markets, that's coming out. this is bloomberg. ♪

>> there's still much lower than they have been. consumers are spending, they have money. low unemployment numbers.

shery: bank of america ceo reported a record third quarter. it's the latest big lender to paint a rosier than expected it sure of the u.s. consumer. we bring in su keenan. concerns of a recession are not visible during this earnings season. su: they see no signs of stress. you heard him say the credit card has jumped 13%. the number of cars is cut in half. the amount of savings depositor is up way up from pre-pandemic levels. bank of america is beating expectations on the strength of its consumer business, and on

strong trading. you can see green across the latest session. dropping to the bloomberg when you can see the weakness. that is investment banking revenue. it was on 46%, less than expectations. the strategic review is at the end of the month and sources are telling bloomberg the bank is considering the sale of them asset management business. in the process of selling the products group which has drawn

interest from parties, apollo. a number of other firms including potential bidders. this is a positive way for the bank to raise money. they do a capital raise. -- they do not want to do a capital raise. shery: su keenan with the latest. we have more to come. this is bloomberg. ♪

no she just 's haidi: the minutes are saying the full effect of previous rate

hikes still lie ahead, they are resolute in the determination but it's likely to require further rate increases reflecting on what the deputy governor said, the rate hike has been steeper. the size is based on data. these minutes are saying the smaller hike has risen sharply. we have gotten hotter than expected new zealand inflation that could impact where the rba goes from here. the transition period when it comes from the follow-through is potentially to be felt and the incremental change has been

slower, smaller. the overall trajectory has been steeper. annabelle: it's being played out in the bond space. yields are ticking higher on the three year yield following those comments that have been dropping in line, reflecting those moves we had in the broader bond space given the u.k. policy pivot. terms of the reaction the aussie dollar, it pushed beyond that level, a currency that has been affected given the more dovish 25 basis point hikes. down to the yield gap, comments are coming through, we have rate rises ahead from the asx 200.

it is a risk on day, every single sector is in the green. that sounds what we're seeing in the oil space. in has stuck in trading between mutts watching opec-plus, you have the fed and recessionary outlook underway. we're eying the key 150 level. we have to allow it to weaken further to set up a trap.

shery: we are seeing chinese jump dollar bonds falling to new records below $.56 this monday. this is coming at a time where a quarterly loss just happened to stabilize the property sector. this is a chart on the bloomberg , down 15. we have fresh declines given the property sector struggles continue in we are seeing china junk dollar bonds falling to a record below $.56. we are seeing more indications.

let's bring in raymond young. how much should we be reading into the delay of this release and how much does it have to do with the party congress? reporter: typically we don't want to speculate the reason. there is no way. the party congress still going and xi jinping took out a better economic backdrop to see the party congress.

i think the problem is we have seen monthly economic data be pretty bad with the zero covid policy. our forecast is for first quarter judy to grow by 3%. next year, we are looking at 4.2% gdp growth. at the moment we don't see any reason why we can expect the third quarter. shery: we're are seeing junk dollar bonds below the $.56 on this monday. what do we need to see? the property sector says we need more measures on the industry.

reporter: they already have expressed the stand to rescue the property markets. local governments have more autonomy to bailout construction projects. what we see is unless the government is willing to change the policy during his speeches and say housing is for living not speculation, this is a headline policy. the only way out is to have a heavy government involvement from private property developers .

more local government bonds of the private property developers can maintain delivery of the housing supply to the buyers because they put money as a down payment. this is the policy direction. without any government involvement, i don't see any way out. haidi: what about the way out of covid zero? hopes are dashed we would see a change in public health policy. what is the best of your assumptions? >> the dilemma is a degree has xi jinping wants to manage the country.

you feel so proud of having a system. the service sector is 53% of the whole economy. the number of medium and high risk areas to me to rise and affect local consumptions. retail sales contracted by 2.5%. that's why we see the policy will continue because the people's daily published a couple of editorials. xi jinping praised the policy as an effective way to manage the public health crisis. i don't believe they're going to relax the policy anytime soon,

maybe in terms of execution if there any progress in vaccination can help to curb the contagions of the disease and alleviate the pressure at the local hospital system. that would be give the government room to relax that on a gradual basis. haidi: asking about the longer-term. there have been comparisons in terms of a lost decade. you talk about demographics, loss of confidence. is it doomed to see the same stagnation japan saw? >> we have seen the similarities. population and productivity is droppingl.

all the characteristics we are seeing in china now. i think is very similar. it's pretty easy to see china falls into the same lost decade. shery: good to have you with us. junk bonds are falling below $.56. dollar bonds see the story on

the property sector, let's bring in a bloomberg reporter. investors are thinking we are in a down cycle. in their minds, it would not make sense to be betting on property bounds. where does the market go from your? -- here? reporter: but those that are getting a hopeful clue from a stimulus. that resulted in a huge disappointment in bond prices and yesterday a default on a

hong kong dollar bond was a barometer for private sector developers will have state guaranteed backing. even with that, they defaulted. all of the measures have not been enough to avert a fuller fallout. haidi: regulators are ramping up efforts to support the stock market. there are no overages from leadership. do we see them taking effect? reporter: there were quite a few stimulus measures in terms of stockmarket support reported by local media, that would include stock transactions easier and making things.

that had an impact yesterday, stocks reversing losses. >> that will be an interesting session. >> liz truss says she will stay at her job. she wants to accept responsibility and say sorry. she is fighting to hang onto power. the chancellor has ripped up what was left of the economic program, is signaling scale back support for household energy bills.

china has decided to seize time on a faster timeline. america's top diplomat says beijing has made a fundamental decision. 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. haidi: the latest twist and turns on the saga next. this is bloomberg. ♪

shery: cryptocurrencies are gaining. bitcoin is close to the $20,000 level. we are seeing u.s. futures extending gains, rally in new york.

where following investigations into the bankrupt crypto hedge fund three hours capital. we are seeing regulators scrutiny into ftx as well. haidi: regulators are trying deep into the remnants. let's bring in a finance reporter. it was the number of twists and turns. reporter: thanks. according to a new scoop, u.s. regulators are trying to find out the strength of the balance sheet and whether they misled u.s. investors. they're trying to find out if

they're registering with regulatory and breaking news as it happens. the bankruptcy process, recoveries of assets have been pretty slow from the liquidator perspective. a large part of this reason is there has not been enough cooperation from the three arrows cofounders and in their own words in court documents, they have said they are frustrated and have approached the u.s. court to subpoena the

cofounders through twitter and email accounts of these cofounders because they are not able to get in touch with them or enough information from them. that's how it is panning out, it is slow in recovery is meager. shery: what does this mean in terms of the broader crypto space? reporter: there's a lot of uncertainty in the regulatory space we are dishing out licenses and credentials.

everything is tightening for regulators. they are not easy-going are looking at it in an open manner, they would like to exercise caution when it comes to looking at the books of christo investors, it has been panning out in singapore and asia where licenses have been slow as well. of course, we have seen a few recently but overall it's becoming cautious because of failures we have seen around the world. shery: tune into bloomberg real

yield. get in-depth analysis from the daybreak team, broadcasting live from hong kong. listen through the apple or bloombergradio.com. plenty more ahead. this is bloomberg. ♪

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the business flash headlines. byd expects record profit and sales volume and sales in the third quarter. the automakers benefiting from making its own batteries and ships avoiding supply chain snags. net income is inspected to rise as much as 355%. there is uncertainty after berkshire hathaway. still lacked this may stop making cars in china as geopolitical tensions escalate. the ceo says the producer may implement an asset strategy for those brands in china, he used the same phrase in july. softbank is so offloading a stake in a shopping firm after the share price collapsed.

it's unclear how much exactly softbank lost on the deal, it was worth over 500 and $67 million when it first announced shareholding last year. i monday, the value had fallen to what he million dollars. the artist formally known as kanye west is buying parler. the company plans to sell the service for an undisclosed amount. would include technical support such as cloud services. parler has been based -- embraced by conservatives who left twitter. haidi: some stocks we are watching and hong kong and china, macau casinos and focus. they suggest one of the worst quarter since the start of the pandemic.

shery: take a look at how currencies are trading at the moment. heading towards the 150 level. the aussie seems to have recovered and we are seeing a jump in the asian session. we are watching >> happening with the offshore yuan, a little bit of strength but very close to multiyear lows. this is bloomberg. ♪

>> it is 9:00 a.m. in beijing and hong kong. welcome to "bloomberg markets: china open