kathleen: were watching "bloomberg daybreak: asia" coming to you live from new york, sydney, and hong kong. haidi: counting down to the opens in tokyo and seoul. >> australia has just come online, asian shares poised to fall following chubb swings. investors looking at mixed echo data and disappointing earnings. amazon's revenue forecast and iphone sales both falling short of estimates. pressure built in japan's currency audubon markets, boj seen once again standing firm on its ultra easy policy. annabelle: the open off the asx 200 and stops snapping a four day rally. what is driving the moves we have after hours particularly with tech earnings coming up in u.s., and we get more of those numbers from the likes of apple and amazon in a moment.

in terms of what else we are watching, keeping a eye on the good space, tracking moves in treasuries because we sought yields reaching their lowest levels of the week in the prior session driven by an inflation gauge that ebbed. we had the rally in eurozone bonds post ecb meeting being driven by the direction of futures in the u.s., given tech earnings. that sets the stage for a risk off station in asia this friday. the other area we are focusing on is what is happening in japan, the boj meeting coming up later today. no real change is expected in terms of the policy rate or yield curve control, but there is more economic data boj will be watching closely. do this our the inflation data, tokyo reading coming out, and what is happening in employment figures as well. the jobless rate is expected to stay at 2.5%. we could see job to applicant

ratio edging up slightly. our team expects the labor market to continue improving to year and -- end. the question is will it be enough for the boj to fuel wage growth. kathleen: that is the question the governor has been asking for years. let's take a look at stocks, futures indicating, this is interesting. it was a .5% drop in the s&p 500, tech shares leading the way, caterpillar, surprisingly good earnings unlike megacap tech stocks. nasdaq down to percent. -- 2%. 10 year continued rise in price. 10-year down to 3.92%. crude around $88.58, up two

dollars today on the sense that gdp breaking two quarters of contraction means more demand, and that is good news for oil. let's move on to tech stocks because it has been the drum of the past 48 hours. apple up, up and down unchanged. they had weaker than expected iphone and service sales, but big key earnings did look decent. amazon down nearly 13% because they are seeing weak demand going into the christmas season. intel is up nearly 6%, they came out publicly, they are pledging to cut cost in the face of the slump in demand for computers. they had disappointing results, inventories rising, so this is a positive step. twitter bouncing up, twitter is

being dropped by the s&p 500, being replaced by arch capital. for twitter it does not make too much difference. they are getting a lot of publicity with elon musk right now. haidi: the saga that just keeps giving. let's get more on the latest tech earnings with ed ludlow. apple, a little bit worrying that it is two key businesses we typically see strength. >> iphone sales came in a below expectations, and there was a micro focus on that, because at the new iphone 14 handset launched september 16, which left two weeks in the quarter to give us an indication of how sales were to go and there were softer than expected. strong pockets, a lot of buyers of the macbook were first time buyers. apple is not immune to what is

going on in the world. impacts from stronger dollar currency headwinds, and i think the outlook for the final three months of this year, although it did not manifest itself in formal guidance, but what we got on revenue growth was not positive. up .2 of 1% over hours -- after hours. based on the street this week that is a good result. kathleen: what is your sense of amazon earnings. lackluster sales going into the holiday season could hit anybody. amazon is like a utility for a lot of shoppers. does this mean anything is changing? are you levering out -- leveling out earnings growth? >> that is a fair assessment. in the first instance investors sees on the weak forecast where amazon sees revenue of $140

billion. there was also evidence of deceleration, amazon citing a higher inflation impacting the consumer, higher energy costs, and in prayer quarters, aws has been the saving grace, but that came in below expectations, and again stronger dollar, unfavorable impact from fx to the tune of $900 million in the quarter gone and investors talking about that continuing to be a headwind to the end of the year. once you get past the initial shock of the week forecast -- weak forecast we talk about how these companies are living and dying by their outlook for the end of the air, the list of problems amazon faced were pretty long continuing -- with continuing -- he is super focused on profit and they are talking about areas where they will try to be more efficient operationally and cut

costs. haidi: are we worried about what markets do on friday? >> i am worried. you know me as well, i am an eternal optimist. you guys were showing nasdaq features on the screen, but i was looking at invesco qqq to etf and that was lower. that tracks the nasdaq 100. at its post-market low we were down 1.8%. that is a knee-jerk, and this was our last opportunity, it is almost friday for me in san francisco. it has been a long list of bad news this week for investors even though we when into knowing megacap stocks were due to see eps drop on average year on year. what we got for looking wise was not with the street was hoping for. kathleen: it will keep you in business, thank you so much.

let's get on to central-bank stories, european central bank doubling its key interest rate to the highest level in more than a decade just as the likelihood of recession amounts of. let's get more from a major central-bank watcher enda curran. what is the message now? more rate hikes? investors reduce their idea of what the peak rate is going to be after christine lagarde signaled that they are going to go meeting by meeting. i thought she already had. what is the take out of all of this? >> seems to be mixed signals, a 75 hike was expected, but they had been talking about hiking for several meetings from your, but yesterday they said they might hike further from here. there was a recession morning from lagarde, a sense that the ecb might be start to pivot or shift the pace of its rate hikes.

at the same time in the press conference, lagarde did make it clear the ecb has a lot to do. she was not hinting at any sort of diversion of the course they are currently on. they will start talking about qt at the next meeting, there were no timelines but they tighten up a cheap loan package for companies and they are that expensive as well. the market seems to be taking the overall message from ecb with these warnings of recessions, including the one by lagarde herself that may be the ecb will be forced into a downshift over the coming months, but it was not an especially dovish message overnight. haidi: we know that the bank of japan is not going to change track at least in this meeting. one of the biggest challenges right now especially when you take a look at the tensions that are building in financial markets and currency markets? >> never say never with the bank

of japan. he does like holiday surprises. the expectations are policy settings will not change. they will probably be the last major central-bank at the end of the day with a negative rate. the whole focus is on how are you going to manage this with the currency being as weak as it is. if he comes out earlier today and is as dovish as always and does not believe the inflation story and says i need to keep putting money into the economy, that will put downward pressure on the currency. that is not with the finance minister once because they are spending billions to prop it up. that will be an interesting balancing act. does he signal something new, and that is may be potential for a surprise if he does tweak something on the policy-sized -- side. doing something on the margins to help at the end.

analysts do not expect them to change the policy story as a result, but the yen is a variable and given how much money the government of japan is spending trying to buy their own currency, people are under guard for each week in the language -- a tweak in the language. haidi: let's get you to vonnie quinn. >> president vladimir putin lashed out at the u.s. and europe about his war in ukraine as he heaped praise on saudi arabia. putin sought to champion russia as -- the russian leader also denied intending to use nuclear weapons in ukraine. a new national defense strategy has rejected minutes on using nuclear weapons. the document does not rule out there use of retaliation to a non-nuclear threat to u.s., allies or forces overseas.

it cites the rise of china and russia as strategic adversaries. president biden a campaign on only using nuclear weapons to deter or retaliate against a nuclear attack. the u.s. says it expects a deal soon with global allies to limit shipments of chip production to china to expand washington's efforts to keep cutting edge technology away from beijing and its military. the commerce department says making the controls announced this month multilateral is a work in progress. the european union as we should go to bed new combustion engine cars through 2035. it will require automakers to cut emissions by 55% this decade . volkswagen said earlier this week it would stop selling combustion engine cars in europe by 2035. 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. i am vonnie quinn. this is bloomberg. haidi: still ahead, a new study

shows women in leadership roles are quitting at a faster rate than ever. we will be digging into those numbers with rachel taunus -- t homas. the boj is expected to hold fast to alter easy monetary policy. ito says that is damaging japan's economy. this is bloomberg. ♪

>> we have raised the three key ecb interest rates by 75 basis points and expect to raise interest rates further to ensure the timely return of inflation to our medium-term target. economic target -- activity in the euro area is likely to have slowed significantly in the third quarter of the year, and we expect further weakening and the remainder of this year in the beginning of next year. the incoming data confirm that risks to economic growth outlook are clearly on the downside, especially in the near term. our future policy decisions will continue to be data-dependent and follow a meeting by meeting approach. we stand ready to adjust all of our instruments within our

mandate to ensure that inflation returns to our medium-term inflation target. haidi: the ecb president christine lagarde doubling down on the hike bath but what was interesting in that policy address there was also essentially what strategists were saying was lagarde was recognizing the risks of stagflation on the horizon. traders interpreting this as a dovish policy announcement and a path ahead given they did drop the words over the next several meetings and said substantial progress had been made on the rate hike so far. in terms of the reaction the euro was down more than 1% against the dollar, trading like this in the early asian session. very much focused on the terminal now, kishida plans to announce an extra budget of stimulus worth nearly ¥30 trillion. we are focusing on what the yen

does ahead of the bank of japan policy decision later today. kathleen: let's get to our next guest, a bank of japan governor faces a key test trying to stick with rock-bottom rates without triggering a landside that required intervention. with us now, effexor ito -- professor ito. it is great to have you back. i want to go to this question people are raising. is the pressure building on the boj to do something with again under so much pressure, the government spending money to boosted. you said there will not be any change. why not? >> first of all, the inflation rate is comparatively very low to the u.s. and europe, headlined is 3%, and excluding fresh foods 3% and excluding

energy and fresh food, 1.8%, so still below the 2% inflation target. it may go up a little more from year, but next year it is expected to go down as oil prices and gas prices will be plateaued. the inflation rate will go down. so there is no reason to hike the interest rate, and also gdp is still very weak, and there are a lot of gaps. from monetary policy textbook you should not raise interest rates. kathleen: you think they could tweak yield curve control, the ceiling on 10 year. why would they do that now? >> yield curve control is putting a ceiling on the 10 year

bond rate, and that can be adjusted if necessary or if it is seen appropriate. the reason is it is the tenure bond rate. do you think that the low interest rate will continue for 10 years? probably not. 2% inflation targeting will kick in maybe if not next year then the next year and so on if the government stimulus works. you could make a hypothesis or the theory that, yes, in 10 years we are confident that the economy will be back in you can raise the tenure bond rate, and also having a steeper yield curve is good for commercial banks. kathleen: some breaking news,

announcing ¥29 trillion extra budget for stimulus, and the total size of the economic stimulus at 71.6 trillion. speaking of the government, there was a lot of conjecture about when korona steps down in april, exit the ultra dovish policy, pressure on the yen and start on the less dovish path, not necessarily hawkish but heading in that direction. do you think that is what the government wants to do? >> it is a kind of self-defeating policy, because raising the interest rate means it will be bad for the economy and bed for deficit and large debt, so it should be combined with more restraint on the spending. otherwise it will have a large impact on the economy. and also if you do not like yen

depreciation, intervention is the onset, which they did again last week. targeting the exchange rate is not in the mandate of the boj. kathleen: -- haidi: the intervention is proved to not exactly be long-lasting. is the strategy to intervene to keep levels on the yen somewhat stable? they do not want to get to 160, 170 quickly hoping that the market tide will turn. is that a sustainable strategy? kathleen: i think we have got to have a retake of that. the intervention haidi was just asking about, to the extent that they have to do it, what that means then for boj policy and what is going on complicates

things for the government. >> well, yeah, there is no conflict between the boj policy, dovish policy and intervention. there are two targets, the exchange rate and inflation, and intervention is targeted to the exchange rate, and monetary policy is targeted to the inflation, so that can be done policy assignment to the two targets, two instruments. kathleen: i went to actually -- want to actually continue on this line of where we are going next but particularly on this question of ycc. if they are changing it what do we expect to see in the policy statement? what do we expect kuroda to ask? what kind of shift would they make, how big of a step they make, and what will he say?

how will he explain it? >> in this meeting, i expect that there is no change, but going forward if the inflation rate becomes higher and if the wage becomes higher, then there is a basis to argue that in the long run maybe we can start raising higher long-term interest rate, so we depends upon the data, but i think the order of change would be ycc and policy rate and qt. kathleen: but not today. thank you so much for joining us, professor at columbia university. plenty more to come on "bloomberg daybreak: asia." this is bloomberg. ♪

haidi: taking a look at trading this friday's session when it comes to westerly of watching the likes of mcquarrie topping estimates, we saw volatility in global trading, particularly in commodities. brother asx 200 all by .4 of 1% after the big selloff across tech in particular overnight. new zealand trading flat at the moment. we are seeing interesting potential when it comes to the kiwi dollar with new zealand saying that is pollen to the 14th most traded global currency. and it comes to the rba outlook, economist seeing half-point hikes after the shock cpi number s&p future numbers loo as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network.

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haidi: let's look at the latest

inflation readings out of japan to give cpi year on year just crossing the bloomberg now. we are seeing october overall consumer prices rising three point 5%, overall consumer prices also seeing a 3.4% rise in the court reading gear on year, higher than expectations of 3.2%. excluding fresh food that is 3.4% rising from the 2.8% and beating expectations of a 3.2% clip. ever volatile energy cause, seeing a gain of 2.2% picking up from 1.7% and better than expectations. we are still expecting the boj to hold that inflation picture as well as the fx challenges remain for the administration, but what they really want to see

beyond the energy inflation i referred to so much is sizable gains across wages. kathleen: one of the things governor kuroda keep saying is one of the reasons he does not think inflation increases are sustainable is because when they are rising a lot on food and energy prices, it is interesting to see the core doing as well as they are. you have got a job, a good paycheck, unemployment rate still at a low 2.5%. is it low enough to make wages rise? jobs to applicant ratio, i love this to cystic -- statistic in japan. more job openings than there are applicants, that is the key point here, and if that is the kind of thing that presumably helps wages rise, it helps boost

inflation and helps governor kuroda make some kind of wiggle on policy. let's get to annabelle now. annabelle: that is right, the uptick we are seeing from the drug trafficking ratio, something bloomberg economics expect to strengthen in the months to come but will it be enough of the boj? a very busy day, a new announcement around stimulus here, so something to counter those effects of higher cost around energy, food for households, also to encourage wage gains further. so that coming in around ¥30 trillion. analysts saying that is more than what is needed, saying something to the tune of ¥5 trillion or ¥6 trillion would have been more appropriate. interesting given the reaction that we had the markets when the ok budget that was announced --

u.k. budget that was announced. we are looking for japan stocks to open lower today. they yen holding steady as we await the key boj decision. it is very much a day driven by what happened in wall street overnight, weaker earnings that came out particularly from amazon forecasting weak holiday sales. that is the state of play half an hour into the trading session for aussie markets and u.s. futures are continuing to slip. haidi: let's bring in our strategist for more. this tech route starting to take shape, what does that mean for the overall risk picture? >> you can already see we are starting to get a bit of an old school divergence between

equities and fixed income. over the past couple of days you have seen bond yields starting in treasuries but spreading around the rest of the g10 market. it is what you would expect when people are getting cautious on equities driven by the big tech stocks. equities are coming down, people see the chances of future rate hikes being a lot less than they were just a couple of weeks ago, and equities are slipping into relation to bonds. that is a bit of an old school shifting portfolios. when people get defensive they want to own more fixed income in relation to equities. a big factor is the cautious outlook you were seeing for major tech companies. if anybody has a good read on what is happening in the u.s. economy and where they see it going, it is people like amazon and meta and alphabet. those are the people to give you a view of what the consumer is doing now and what he is likely to do in the months of head -- a head. those companies are starting to

complain about a strong dollar, sales in the upcoming holiday. not likely to be as good as they were in the past. you have seen the bank of canada and ecb hike rates this week. talking about in outlook that suggest they are getting close to a beacon rates, you may see that from the federal reserve next week. we may see the federal reserve with a similar kind of cautious view. kathleen: i was actually puzzled by the reaction in the bond market, european bonds, the euro, because christine lagarde did not say we will see more rate hikes and further meetings. she said further meetings would be data-dependent. why was that taken as dovish, because you could say she is opening the door to do whatever has to be done? >> i think it is partly because we are getting pretty close to 2%. the hike yesterday took the ecb rate up to 1.5%.

various people from ecb have said several times that a number close to 2% is probably where they would take a pause, that is their equivalent of a neutral rate. we are probably only one rate hike away from that. it could be markets believe that to be the case, ecb is going to hike once more 50 basis points and then take a hold for some time. if you look at the situation with long-term lending, they tweaked lending to european banks. that is a negative for the european economy, adds to the headwinds. we are going into the winter season now, it is expected to be a tough one particularly on energy supply and europe. the outlook is for slowing growth in europe. ecb is worried about that. the market is saying we see nothing here to change our view that ecb rates are going to be ready soon. kathleen: that is marked

renfield putting everything -- mark cranfield putting everything in perspective. i want to give you breaking news, i want to give you a correction. i read the previous month 2.5%, but it did pick up a bit to 2.6%. that is not a big move but people wondering what is happening, services jobs are supposed to increase again, and we will see if this is having any kind of impact in the markets. i guess maybe a little one but not too much. people are waiting for the boj decision later today. moving on to credit suisse, suffering its single against daily decline on record after a years of big losses and scandals. let's bring in su keenan. it investors do not seem impressed. >> the top leaders describe this

restructuring as radical and decisive, but analysts say it was not radical enough and it was not exactly decisive. take a look at price action. investors rejected this after the capital raise, a multibillion race that deludes the stock. it felt like historic proportions in europe, and in the u.s. adrs fell by even more. this is not the result the ceo was looking for. he spoke to bloomberg earlier. >> it is a much simpler, much more stable, focus bank going forward, which will deliver sustainably profitable results to our shareholders. >> it is simple, stable, focused. you were looking at the recent history of credit suisse, years of scandals and multibillion

dollar losses. analysts had hoped for more shrinkage and investment banking, and they say instead the plan is more complicated than resets for deutsche bank and ubs. bloomberg has been reporting what is now official, thousands of job cuts, the sale of its securitized products groups and they are doing the capital raise that many feared what happen because it would dilute the stock. haidi: how do the latest developments complicate things as well? >> the question is how do they restore confidence, clients have been fleeing the bank. they say they will only have a nominal dividend going forward. the lender booked the $4 billion charge, a link to this critical overhaul, and it warned it would probably record another loss in the fourth quarter related to

its transformation. you were looking at a lot of red there on the screen. this was the only investment bank on wall street to report declines. fixed-income trading fell 20% when every other peer reported a record trading results. speculation as to how the bank addresses the loss of investor confidence, look at how the short interest in the stock has grown. that has led a lot of clients to cut business ties with credit suisse. the bank says outflows have stabilized, but they have not yet reversed. a radical restructuring that will play out over the next three years, after which the ceo says we will be back to profit. back to you. haidi: su keenan with the latest on that drama. let's get you to vonnie quinn. >> the ecb's decision to hike its key rate by 75 basis points is not unanimous.

sources say three policymakers wanted a smaller 15 of 1% increase. there was a debate about whether to acknowledge substantial progress in organizing policy. president lagarde says more rate increase could happen in the coming months debate upon data. >> it might will be several meetings. it will be determined meeting by meeting. we know the path, we know the journey. we know the destination, which is not as clear a figure you would like to pin down because we cannot do that. monica the u.s. economy's recent rebound is looking like a high watermark for recent expansion. there quarter gdp rose 2.6% and annulus report investment in hunting plunged. the energy of the economy, consumer spending rose 1.2% for the previous quarter. the u.n. is now the fifth both -- most rated currency in the world. the chinese currency was

involved in several percent -- 7% of all trades. the dollar kept its decade-long spot atop the raking, part of 80% of transactions. elon musk says he is buying twitter to try to help humanity out of love. the world's richest bridges and is on track to require the company on friday. in a post on the platform ahead of the deal closing muska said it is important for civilization to have a common digital town square but he added it cannot become a free-for-all health scape -- hell scape. 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. i am vonnie quinn. this is bloomberg. kathleen: why more women are leaving the top ranks of companies. rachel thomas joins us next to explain. this is bloomberg. ♪ inside, outside, big or small,

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haidi: women are leaving the top ranks of companies at higher rates than ever before according to a new report from mckinsey. for every woman at the director level who gets promoted, two female directors are choosing to leave their company. let's get more from a co-founder rachel thomas who was a co-author on that report. i was just saying a few moments

ago that while this makes for a depressing meeting, perhaps it is unsurprising, not least of which considering we know the pressures are on female employees and professionals the last two years with the pandemic. what were the key finders and drivers of this attrition? >> the big finding this year is we are in the midst of a great breakup. women leaders are as ambitious as men, but we see them leaving organizations at the highest rate and at a higher rate than men. women are already underrepresented in leadership and russia's leaders are choosing to leave. but the scale up that context, for every one woman director are promoted, two are leaving. in terms of why, we know women are as ambitious, but they are receiving signals that it might be harder for them to advance. women leaders are twice as

likely to be mistaken for someone more ginger than men leaders. we are putting a high premium on flexibility, because they work a double shift at home and they work a double shift in the work i says well. women leaders are showing up as good people managers, jay begins of diversity, equity, and inclusion and they are looking at their companies and saying we went to see the same commitment from you. haidi: it feels like it is one step forward, two steps back because we know it is tough enough getting women leaders into top echelons of the first place let alone being able to hold onto them. what is the gap where we are seeing a lot of these companies and corporate environments and policies making enough progress to get female leaders up there but not being able to keep them? what is that bit that needs to change?

>> one, we have seen progress over the last several years, although it is been painstakingly slow. and now we have this new pipeline problem of women leaders leaving on top of an existing pipeline problem. we have been saying for years there is a broken run at the first critical promotion to manager. men are far more likely to get that promotion. in a typical company 60% of managers are men and 40% are women, which means it is harder to get women into those ranks to begin with. so that is a double pipeline problem and why we are calling on companies this year to double down on the investment they are making in advancing and promoting women. kathleen: i can look at it from an optimistic view, 40 versus 60 is way better than it used to be. women wanting to have more flexibility, if you were trying to climb a letter, a lot of people are saying when you were at those lower levels, if you

were not in the office you were at a disadvantage. >> there was a lot to say about flexibility this year. all employees prioritized flexibility pre-pandemic and flexibility is here to stay. companies say they will continue to offer flexible work options, and it is a priority for all employees and particularly women. only one in 10 women went to work mostly on site. to your point, when more organizations need to start doing is how do you level the playing field regardless of where someone is working? and that means focusing on the results. what is getting done, the quality of the leadership, not where and when it is getting done. face time is valuable, so how are we creating those opportunities were all employees regardless of where they were -- work? kathleen: have you per conduct any of your surveys, women with

children? when we refer to the pandemic and what it brought out, child care seems harder than ever in the u.s. to actually get, how much of a disadvantage is that for women who tend to be the main caretaker of the kids and do all of those kinds of things? do more companies have to offer and subsidize quality childcare? >> we obviously know lack of affordable childcare is a real issue in the united states, and absolutely companies that are offering childcare are offering extended family leave, they are doing a better job of holding on to all parents, and we do know parents of children under 10 and particularly women are deeply affected edward deeply affected by the pandemic and are some of the employees most likely to be burned out. let's be clear, all women are still having a more difficult experience in the work place than we would like and particularly women of color were

traditionally marginalized identities. women of color are moving through the pipeline more slowly than white women and men of color. when you get up into the c-suite only one in 20 c-suite leaders is a woman of color. haidi: kathleen makes an important point, we saw a very welcome reception to a pretty major expansion of parental leave as well as childcare reform here in australia. at numbers are startling. we see data in the first five years of parenthood, the average woman' is earning capacity falls by 55%. we know it is harder to get that participation back in, right? what do you think is a baseline of government and perhaps corporate policy? what should companies offer to incentivize them to come back into the work force and stay there and work up the rankings of leadership? >> in corporate america, most

companies are offering extended parental leave. they need to start pushing further and do childcare subsidies. are they doing on ramping and off repping for people taking extended leave? what are the wraparound supports for parents, and art managers being trained to be as supportive to parents as they need to be, particularly to parents and helping them balance workloads, helping them happen career conversations? those are the things we need to be doing in addition to what we're doing to hold onto parents. kathleen: rachel, thank you so much for joining us with this very important study. tune into bloomberg radio to hear more from the day's big newsmakers and get in-depth analysis from the debris team broadcasting live from her studio in hong kong. listen to via up, radio plus or bloombergradio.com.

plenty more ahead. stay with us. ♪

kathleen: i check of business flash headlines, until shares rose and laid trading on a place to/cost is it weathers assumption persistent demand. it is down as much as 20% from

2021. third-quarter profit fell to $1 billion from almost $7 billion a year earlier. profit doubled in the third quarter reaping the benefit of higher energy prices. net income rose to $5.1 billion on revenue of $50 billion. in's biggest offshore oil and gas triller used reduction to a record 15 7 billion barrels equivalent. the company's profit -- mcquarrie's profit beat estimates. shares have been under pressure since delivering record profits in may. haidi: these are the stocks we are watching when trade opens up in korea and japan, shares of asian constructed makers, caterpillar higher after the industrial bellwether said it sought more equipment than expected.

watching hitachi construction as well as hyundai construction as well. mark matthews tells us to expect a santa claus rally. markets are hitting about him, he is with us in a few minutes time. plus military competition is moving to center stage in u.s.-china relations. we discussed the high with a stanford university fellow. market opens in seoul and tokyo are upon us. this is bloomberg. ♪

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>> this is "daybreak: asia." it is boj decision day. we don't expect major surprises. but i feel like that might be setting us up for a surprise. it is the same set of factors we are dealing with. kathleen: i think what we are watching for is what happens to the yen. if he doesn't change policy. if there is a lot of selling, the government has to intervene, i think this is a big question on top of the fact that there is a lot of negative sentiment after mega caps got bad news. annabelle: certainly traders are positioning for a lot of volatility on a short-term basis. let's check in on how the markets have opened in japan and korea, watching the 10 year yield very closely. we saw yields reaching the

lowest levels of the week. a few factors playing into that, including and engage -- an inflation gauge. we are really focusing on what's happening with the yen ahead of the boj decision. we have seen it falling off the recent lows that it reached after the boj intervened earlier this week. that really set us up into this range we have been in, around that 146-148 level or on the course of the past few days. traders anticipating no moves from the boj but still some sort of positioning, a perhaps tweak until kuroda steps down next year. we are focusing on the nikkei, sliding at the start of trade. similar moves over in the kospi, given that we are focused on the tech sector, the cause deck -- the kosdaq, outpacing the losses.

slumping after hours after a forecast -- it forecast weaker holiday spending. we have risk off sentiment trading through the markets. the south korean government does say inflation is easing, so that does put a little bit less pressure on the be ok -- ob the boj. we are off half a percent, snapping a four-day rally. focused very much on what is happening in the bond space as well, given the moves that i said we had an treasuries, led by what was in the shorter end of the curve. similar moves for the three year yield at the start. also eyeing what is happening in brent crude. we have seen a little bit of optimism coming back into the market, given traders were assessing some u.s. gdp data, early numbers were indicators from the government. still concerns around the demand outlook as well. haidi: we will get more on that

demand outlook and what it says about the strength of the consumer. our next guest says this is not a bear market rally but a santa claus rally. with us now is mark matthews. head of a cell research at -- head of asia research at julius baer. is it why you are calling it a santa claus rally when we are not even on halloween yet? >> i drove around last night and the christmas lights were up, so subliminally that is what made me say santa claus rally, but year-end rally, whatever you want to call it. kathleen: what shape does that rally take place? where starting to see that formation of a pretty classic rotation. more and more narrative about may be valley was going to come back into fashion. week quite clearly see -- we quite clearly see tech and growth struggling at the moment.

>> yes, we do. i'm sure you know the leadersevery decade change in the u.s. we are so accustomed to think that the leaders are stops like -- stocks like amazon and google, but they won't be. the way the stocks have reacted to the earnings, the messages they are simply too big now to grow law. i don't quite know what the leadership will be. looks like it is industrials right now. but i will say for the broader markets, we are comfortable in telling our clients the bottom was two weeks ago. we do think inflation is coming down. the inflation is a complicated thing. . it started with goods. they are coming down. but now the services prices are very high. we think the services are starting to roll over. of course we had august, the property index in the u.s. the apartment listing platforms

are also showing rental prices have fallen a lot this month, in october. the fed can't signal that it's over quite yet. because headline cpi's still so high. we can see which way the wind is blowing looking at the rva, the bank of canada, and the ecb last night. kathleen: if it turns out that central-banks say, we don't have to hike rates aggressively, what if they just say, we have to hike them but maybe not as aggressively but keep taking them? -- keep hiking them? can the market rally regardless, because they know pricing out six to nine months that that is in the works and that is going to open the door for earnings to approve and all that? >> you answered the question precisely. we don't need rates to come down, i don't think. i think we can live with interest rates around these levels. what we would like to see is a light at the end of the tunnel. i think that is what we are

starting to see now. kathleen: where do you put your money? let's look at stocks. is that the u.s., an asian market, an asian region? europe looks like it's headed towards a recession. >> well, one thing we have not discussed is geopolitics. unfortunately they are just really bad. i think that makes definitely china and russia off limits. then asia's a pretty hot place. so you are looking at countries where you are comfortable with the security and rule of law and transparency in companies. i think that takes you to the u.s. it probably also takes you to canada, australia, switzerland, sweden, then you would want to look at other places like may be the u.k., the eu, japan, but they have their respective problems. there is a list and it is quite long. singapore would be one where

it is far away from potential problems but it's got good quality of governance and a strong economy. basically i would say developed countries. haidi: they think covid zero is going to be lifted by the end of the year. i don't know why he thinks that. would that be a good enough catalyst to be back on to chinese asset opportunities for you? >> no, unfortunately. i think a bunch of things came out of the party congress. one was what they are not going -- one was that they are not going to remove covid zero. there was no acknowledgment of the importance of a market-based economy. i think what made china into the very rich country that it is today was their acceptance of a market-based economy.

so if that's no longer the case, that is not a market we want to be in. kathleen: i want to know about your long-term call in india based on the metrics you were talking about, developing nations, why do you like india so much? >> there's too many reasons. the first as they did a whole lot of reforms over the last eight years which are now bearing fruit, essentially allowing tax collection to be at record highs, to have dragged to the small and medium-sized enterprises, the bulk of the economy, into the official economy, so they can spend that money on building bridges and airports and highways and things like that. the second thing is, they have a dependent age population smaller than the working age population, that rubicon was crossed four years ago, and that will remain the case until approximately 2060. if you look back at other countries, when the working age

population was larger than the dependent age population, generally it was a sort of golden period, it started in 1964, korea 1987, that's another thing we like. kathleen: fascinating conversation. the head of regional research at julius baer. mark matthews. . vonnie: fulton has lashed out at the u.s. and europe and reiterated support for china's claims to taiwan. he accused the u.s. and its allies of seeking global domination. the russian leader also denied intending to use nuclear weapons in ukraine. the pentagon's new national defense strategy has rejected some limits on using nuclear weapons. the document does not rule out their use in retaliation to a nonnuclear strategic threat to the u.s., and its allies were forces overseas, citing the rise

of china and russia as strategic competitors and potential adversaries. president biden campaigned on only using nuclear weapons to deter or retaliate against a nuclear attack. the u.s. says it expects a deal soon with global allies to limit shipments of to china. making the u.s. controls is a work in progress. credit suisse's top two leaders described plans to remake the troubled bank as decisive, promising an end to have measures. the restructuring will see a $4 billion capital raise, thousands of job cuts, and a spinoff of the investment bank. shares plunged the most ever, with investors and analysts worried about a timeline and some suggesting the changes are not extreme enough. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. ♪

haidi: let's take a look at some of the movers in this session. belle, what are you watching? annabelle: let's take a look at how we are faring for some of the major retailers in asia, given we had those results up from amazon. you can see what investors are thinking about with this forecast for weaker holiday spending. in terms of the direction for asia today, we are seeing them mostly on the downside. a risk obsession led by tag earnings from amazon. apple was another that reported after the bell. it was a little bit more positive. take a look at how some of the apple supplies are faring here, given they did sort of managed to dodge the overall tech rep even with the warning of a holiday slow down. but still the sales beat estimates and the iphone and services, a little bit of soft spots. broadly we are seeing supplies in the red this morning.

one last the sector we are focusing on is the machinery one, we had caterpillar actually reporting better results than expected. caterpillar want to know because it is one of the biggest machinery makers in the world but also it can really reflect health of industries from mining to construction, oil and gas, today we are seeing it is one of the sectors that is rising here, a risk of session here in asia. kathleen: still ahead, the escalation between china and the u.s., as president xi takes on more personal power. we will discuss that with oriana skylar mastro. up next, amazon stumble over a week sales and a disappointing forecast. a roundup of u.s. earnings, coming up next. this is bloomberg. ♪

kathleen: the japanese prime minister has announced a 490 billion dollar economic stimulus package to ease the impact of rising prices on consumers and companies on the same day the bank of japan is expected to stick with the rock-bottom interest rate is been pursuing for many years now. let's get more from our asia economics correspondent, enda

curran. no change expected pr but i think you were talking earlier about the possibility of this rousing the yen selling forces, how do you think this is going to play out today? >> we are having some interesting news this morning, you mentioned the extra spending that would not lend itself to a central bank tightening. of course we have inflation data on the others coming out of tokyo showing -- other side coming out of tokyo. the broad picture for the boj is they are not expected to change their core policy settings. the negative rate is expected to stay negative. kuroda will continue to support his commentary about offering support to the economy. what signal will they send around the yen? the context is the government of

japan is spending tens of billions of dollars on buying its own currency. some people are saying maybe there are many ways -- that are better ways to spend money then supporting the yen. there's got to be a lot of focus on whether or not governor kuroda to ask his language a bit. no change in the core policy-settings. if there is a change, it is expected to be with the yen and that order is potentially some surprise. haidi: we did see those plans, the government was clearly expecting the boj to think more and consider more when it comes to the currency side of things. are we starting to see this tug-of-war play out between governments and central-banks in terms of conflicting priorities? >> it is a confusing time for policymakers everywhere, no doubt about it. he heard the ecb last night,

madame lagarde talking about the need to continue to raise interest rates because of inflation, also sing a recession is quite likely. there is also similar commentary and other central banks and finance ministries around the world. it is a pretty unusual set of circumstances. that all these policymakers are facing at the moment. that is why i there's a lot of scrutiny today on the boj. are they going to offer support in terms of what they are doing with the yen? will they continue to go their own route and lend itself to more diverse language, telling people too often sell the young, which is not what the government wants. there is tension. but it must be said things are complicated for policymakers at the moment. kathleen: if you about the back talks between the ministry of finance and the boj. the ecb, delivering a jumble

rate hike. christine lagarde, lugging more increases ahead -- flagging more increases ahead. >> it might well be several meetings. it will be determined meeting by meeting. we know the path, we know their journey, we know the destination, which is not as clear as a figure that you would like to pin down, because we cannot do that. kathleen: that was christine lagarde speaking after the ecb doubled its key interest rate to the highest level in more than a decade, at the same time as a recession risk is rising. the imf was on board with this kind of thing, that you've got to keep raising rates because inflation is a big threate now. >> they had been talking about aggressive rising for several meetings now, for their meetings from here.

madame lagarde called the press conference. they do have a lot of work to do. there is no question of a dovish for bit by the ecb. should come firmed -- she confirmed they are's making a special cheap loans program. the whole commentary is certainly one of tightening. there an element of caution, madame lagarde is saying recession is likely. they will be a little bit data driven. the headline takeaway is these policymakers are putting up interest rates and mortgage rates first to try to bring down overall demand, then of course worry about growth secondary. it is still all about containing inflation. haidi: bloomberg's chief asia economic correspondent, enda curran there.

stocks tumbling. ed ludlow has the details. >> there was a severe after hours reaction in the forecast for the fourth quarter, the revenue will be between 140 and 148 billion dollars. investors, punishing companies, not just those missing on the top and bottom line but those giving tepid forecasts for the current period. there were a long list of problems for amazon, currency, $900 million in the course of gone will continue to impact amazon going into the final three months of this year. there was deceleration in the third quarter. higher inflation impacting the consumer also higher energy prices. also underperformance in the aws cloud unit so often the savior of the e-commerce business when it is underperformed. for apple that was a mixed bag of results, bouncing around in

after hours trading. the kind of thing investors latched onto were iphone sales, weaker than expected. the new iphone 14 launched september 16th, giving two weeks at the end of the quarter to get an early read on demand. there was a strengthened that book, but weakness in services and ipad, also impacts from foreign exchange. the stronger dollar continues to be a headwind for mega cap tech stocks and big companies all around the world. the forward-looking guidance or soft guidance, there's some impact to revenue and the final three months of this year. apple's fiscal third quarter. fighting talk from tim cook about the demand for the products globally and what they are seeing in terms of an expansion of apple's offering a reliance on the at -- reliance on the iphone to new hardware. they already moved to raise prices not just in the app store and in app purchases.

ed ludlow, san francisco. kathleen: want to know more about the mega cap tech stocks hitting the market so hard? you can get around above the stories in today's addition of dayb on your terminal. you can customize your settings so you only get news on the assets you care about. this is bloomberg. ♪

>> there are measures the eu has been taking to mitigate the crisis are consumers and businesses and released an emergency proposal to avoid excessively high gas prices

in case of disruption that you market -- in the eu market. haidi: let's take a look at how european futures are opening up at the moment. this is what we are seeing for euro stoxx 50 futures, pretty negative at the moment. msci europe, looking pretty flat. we saw a drop for the ecb, potentially less hawkish, but traders are paring bets on longer-term rate hikes. we are seeing dax futures trading in germany about .7% lower. the broader trend was seeing the rate sensitive textures -- t ech shares trimming those declines. it will be interesting to see how tech reacts given that we have had that big selloff in u.s. tech mega caps.

kathleen: let's get a check on the latest business flash headlines. intel rose as it weathers a persistent two computer demand -- persistent slump in j computer demand. third quarter profit fell to $1 billion. cnooc reaping the benefit of higher energy prices. [no audio] -- revenue up $15 billion -- revenue of $15 billion. [no audio] rep ron started

restructuring process calwood lawyers for the bankrupt cosmetics giant says it's begun sending nondisclosure agreements to potential bidders and as vetting third parties. revlon has two weeks into restructuring with the key group of leaders. -- a key group of leaders. haidi: let's take a look at how asian stocks are faring so far in the session. a lot of pressure when it comes to tech at the moment, a volatile session in the u.s. investors are still clearly digesting the earnings from the big companies, the likes of apple and amazon, the nikkei off about 1%, the cost be looking pretty flat at the moment, we are seeing weakness coming through from trading here in sydney as well. more to come h just look around. this digital age we're living in, it's pretty unbelievable. problem is, not everyone's fully living in it. nobody should have to take a class or fill out a medical form on public wifi with a screen the size of your hand.

home internet shouldn't be a luxury. everyone should have it and now a lot more people can. so let's go. the digital age is waiting.

haidi: let's take a look at some

breaking news crossing on the eco front for us to really prices are rising 1.9% quarter on quarter, year on year that is a rise of 6.4%. both of those numbers, when it comes to the your on your number, accelerating from the previous quarter. quarter on quarter, we see the number picking up paste, perhaps a little less so, 1.9% from the 1.4% we saw in the second quarter. that continues to really add to expectations from the rba. particularly now that we have some economists seeing that pullback from the rba potentially resuming hikes after we saw core inflation accelerating by more than forecast. the likes of bill evans from westpac expecting half-point rate hikes starting from next week. let's get you a look at how markets are faring so far. annabelle: speaking of rising prices for companies, we are

also focusing on that and japan as well. we did have that stimulus announcement this morning. worth around half $1 billion. it is about helping companies, consumers dealing with rising prices in the country. the timing of courses interesting. not only is the japanese government seeing failing support, you also have a coming on the same day as the boj meeting, which is expected as we noted keep its ultra low policy settings in place, ultra-easy, yield curve control. a major contributor to the weakness in the yen. that is an issue for a lot of companies inside japan. it does really raise questions around the consistency of fiscal monetary policies and the country. we are focusing on what's happening in the bond space this morning, you can see this retreat in bond yields across the curve, being led by what happened in the treasuries the previous session. we have soaring inflation ebbing

in the u.s., added by what happened with the eurozone post ecb decision. you can add what's happening in the futures as well, we are seeing those slip for the s&p 500, the nasdaq, given the results from amazon, forecasting sluggish holiday spending in the months ahead. the nikkei, down more than 1%. the asx 200, up .6%. speaking of amazon, you can spare a thought not only for the shareholders, but also the man himself, jeff bezos. take a look at where he is sitting in the rich rankings here, third place still. but that could change, as we head into that session -- the session. even if the losses to hold. jeff bezos could be looking to lose around $23 billion from his fortune, if the stock does it slide to the peak of what it did in the after hours, which is around 21%.

that would be the fifth biggest drop for a billionaire out there on a one-day basis. kathleen. kathleen: how about that? let's get to vonnie quinn with the first word headlines. cnooc vonnie: vonnie: the ecb's decision to hike key rates by 75 basis points was not unanimous. sources say three policymakers wanted his mother half-point increase. there was also a debate about whether to acknowledge substantial progress in policy. [no audio] >> -- which is not as clear as a figure that you would like to pin down. we cannot do that. vonnie: the european union has reached a deal two new combustion engine cars from 2035.

the plan will require automakers to cut emissions by 55% this decade and reach carbon neutrality by 2050. volkswagen set earlier this week it will stop selling combustion engine cars in europe by 2035. the u.n. is now the fifth most traded currency in the world according to the latest pis central-bank survey, involved in 7% of all trades and 2022, putting it ahead of the also, the loonie, and the swiss franc. elon musk says he is buying twitter to try to help humanity out of love. the world's's's richest person is on track to acquire the company for $44 billion on friday. in a post-ahead of the deal close in, musk said it is important for civilization to have a common digital town square. he said it cannot become what he called a free-for-all health scape -- free-for-all hellscape.

global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. ♪ haidi: a busy day when it comes to earnings and china. a long list of names reporting today. among them some of the biggest banks. investors looking for signs of how the country's slowing economy is weighing on lenders. stephen engle joins us now from hong kong, what are we expecting? >> we are expecting the state owned banks to report today, it is a big day for earnings from china. it's interesting because the banks are ok but are trading pretty weak right now. since the february 11th high, the state banks are down in double-digits here in hong kong. down 26% since the year high in february, feb. 11. the results are going to be ok, mid single digit in the third quarter, but the risk is country

risk. that is what the hot take is. country risk supersedes other factors like earnings and return on equity for chinese banks, that will dominate china's valuations in the near term. the big five state owned banks, iccb, bank of china, the postal bank of china tainted 0.3 times to 0.4 times forward but and carry an average country risk for premium of 26%, far ahead of other global banks at an average of 8.7%. this is there hot take. they say earnings should be stable, but there valuations could continue to be disconnected from their fundamentals, as country risk becomes the only dominant factor. country risk, what we've seen reflected earlier in the markets

with the stacking standing committee by xi jinping, covid zero and other risks created by policy and downward trends on the economy. icbc, they are the biggest lender. we are going to keep an eye on nonperforming low -- nonperforming loan ratio, 4.4% in the third quarter. essentially loan growth to drive revenue and earnings, with more property lending. some support comes into the property sector, they see more lending to the property sector -- to the property sector by icbc. that's why we have to change the page on watch china construction bank. they are the bank and china with the largest exposure to mortgages. it's mortgage quality could serve as a barometer on how lenders withstand the mounting risk on the property sector. that is a quick snapshot of what we are expecting. >> they are in a tough position. there's not a lot of demand for credit. stephen engle. onto more on the long-awaited

created suisse overhaul -- credit suisse that failed to impress investors. we have details on restructurings and plan to reach profitability by 2024. >> today the bank has paused because it was not profitable enough from the shareholder perspective, and that is where we came up with the need of taking very decisive actions in mainly through different areas, one is radical restructuring of the investment bank, the second one is significant reduce in costs going forward as you have seen, and the third one, very importantly, for the strengthening of our capital basis. why is that? because we want to go through the transformation of the next three years with a very strong capital base and leave the transformation also with a very strong capital base. >> are you confident the

announcement today puts the capital question to bed? >> yes. >> what kind of conversations have you had with shareholders? >> have permanent -- >> we have conversations with shareholders, they understand what we are doing in the area of capital. we are doing divestments, partnering up, as you have seen, in the products business, all of that generates a lot of capital and puts us through the transformation. >> one does credit suisse become profitable? >> definitely from 2024 onwards. >> and there's no chance -- there's always execution risks. where do you see the main execution risks today? >> one of them as the market environment. the market environment is a challenging one. the market is the same for everybody. that is exactly how we deal with it. but it is a changing market environment. obviously, you figure the plans.

>> does that mean you had a more aggressive strategy to take account the market turmoil? we have also been outflows partly because of the markets. did you have to overcompensate? >> no, it's not about overcompensate. the markets is one of the factors. how we did the planning for the next few years is, we tried to do it in a prudent, partially conservative way to make sure that -- and that is very important for all we are doing here, we don't want to overpromise and under deliver, we want to do with the other way around. haidi: we know one of the biggest challenges facing a lot of wall street and financial institutions has been the fight for talent. particularly when it comes to the more junior levels in these businesses.

we are starting to see this phenomenon of quiet quitting. that is getting steam in the finance industry. it is unusual because we know that in these sorts of businesses, we see the highest levels of engagement and employee's, but that according to a new study might be starting to change. the share of workers will respond that they are very likely or extremely likely to try to their hardest to do a good job for the company has actually fallen overall since last year, according to the survey of more than 9000 u.s. full or part-time employees. we are seeing one of the biggest drops across the finance and insurers sector. 8% fewer employee is reporting that they are willing to give it their all on-the-job. it's a pretty big change from 2021. kathleen: i see the studies and wonder, if you break it down and age, that would be very important. i think some people of previous generations felt they started jobs, they worked as hard as they could, yes, you don't

always love your job, but you keep going. it seems that this story is linked to younger workers now who feel that they are quietly quitting because they don't care that much about the job. the other thing i always wanted to know that you never find out -- the says more people have been quietly quitting, but i wonder, some people have been quietly quitting all along, maybe people are finding finance more boring than they used to? i don't know. [laughter] haidi: i would also say when it comes to the younger generation, you see the letter rot, it is not about being engaged with jobs, it is being jaded overall with how to buy a house, with homeownership, how to get married, the expectations from society are so high, maybe that is also playing into the psychology of not wanting to put as much into it. kathleen: you kill yourself at work and i totally understand

because it is so tough or younger people now working as hard as they can trying to buy a house in particular. coming up, we are going to stop talking about this for a minute and go onto the risk of military escalations between china and the u.s., as president xi takes on more personal power. we discussed that with stanford university next. this is bloomberg. ♪

haidi: breaking news we have been waiting for for a long time -- elon musk has closed the deal to take twitter private for the value of $44 billion after months of will they or won't they? this week became a critical countdown for elon musk, running up against his court-ordered deadline to deliver on this deal. he made good on his promise to buy twitter for $44 billion. we are seeing now that he has closed the deal to take twitter private for $44 billion. the world's richest person and twitter had until 5 p.m. on friday in delaware to get the deal done. if they didn't, the judge said she would be scheduling a november trial. we avoid that, but this comes after bitter rounds of suing and counter suing, we heard elon musk assuring bankers this week that he would be able to wrap up the buy out on time, with the financing having been completed, the stock exchange said action was pending as we saw the

suspension of trading. we are watching geopolitics as well ahead of the apec leaders meeting in november. discussing the issues facing the 20 member regional grouping, the war in ukraine remains a contentious topic. meetings in may ended without a joint communique reflecting divisions over russia's invasion. the u.s. and five allies released a statement condemning the fellow member russia. this year's host, thailand, says any disagreement over ukraine did not overshadow discussions on the economy. >> the issue is not the economics fully. the situation has already

happened. the consequence of the situation is the thing that we need to work together now to resolve, particularly the impact to the majority of the people. haidi: will apec be able to set politics aside with tensions increasing over time one? let's get more with oriana skylar mastro. stanford university center senior fellow. let's start with what xi jinping said today, mutual respect, peaceful coexistence, he recently said he was looking for world dominance -- you talk about military communications upfront. bluf, a military acronym, where you see military competition. the bluf is that military competition is going to move to

center stage. what does that mean moving forward? >> in the next term that xi jinping has, the next five years, we are going to see a lot of activity in the military realm. in the past, we have had increased attention in the u.s.-china relationship, with allies and partners, largely economic coercion, in the economic realm and the medical realm. now china has increased military tools at their disposal and are more willing to use them to signal how unhappy they are about certain developments. for example, over time one. -- over taiwan. kathleen: we had a guest on that says they are no more in a position to have more military dominance than they had been. do you agree with that? do you think this is an escalation that is already underway? >> what is not new is that the china's military has been modernizing for a decades. people always ask on taiwan, can they wait? the chinese have a long-term vision.

but we are at the tail end of it. they've had a plan for 75 years of trying to gain time one back -- gain taiwan back. now they are reaching a point where they have the equipment and the capabilities, they have an organization in place, so the trend is in improving military over time, so every weekend month, something else happens to make the china's military more capable. so the trendlines are consistent. haidi: we also saw a statement today really reinforcing what we have talked about is the no limits friendship between vladimir putin and xi jinping, between china and russia. what other limitations are there and this friendship, do we continue to see that playing a role in the split of the multi-regional groupings? >> they didn't condemn russia,

but they also did not offer russia any military support. it might have given the impression that the relationship is not as deep as we thought. however, i would caution people against that assessment because the china-russia alignment has always been about pushing back on the u.s. and asia. russia wants to help china condemn the u.s. actions in that region. so i'm very concerned that even though china was not overtly supportive of a russian invasion of ukraine, that we will see russia being much more supportive of china in the case of taiwan. for example providing logistics, equipment, oil, so the u.s. capability to course china, to blockade china, to do anything to deter this aggression decreases significantly if they are confident in russian support. haidi: oriana skylar mastro. stanford fellow at stanford

university. more ahead. this is bloomberg. ♪

haidi: elon musk is set to have completed has $44 billion acquisition of twitter. we are also seeing reports

of the leadership departure that had been earlier expect that as well, including the twitter chief executive officer, one of the executives leaving, as his deal is completed. the head of legal, and the cfo, ned siegel, and the general counsel, sean e., as well, and the top echelons of twitter sent to be leaving as musk is said to be closing the deal now to take twitter private at the $44 billion valuation. ed ludlow joins us on the line with the breaking news. what are we hearing? ed: elon musk has cleared out the c-suite. sources are telling us the names just mentioned have gone. i guess more importantly for the market, the deal has officially closed. there was no expectation that it wouldn't close at this point. we were hearing from both the debt side of the deal, from what mu was telling -- musk was telling the bankers and

co-investors on the equity side of the deal. sources telling us funds have been transferred, the paperwork was done and signed. and it is closed. we also reported today that musk had brought in a small army of engineering talent to take a look under the hood, so to speak, at the code, the underlying code that powers the twitter platform to understand it better, and those engineers were working closely with twitter engineers before the deadline. so there we go. haidi: there was a big story -- kathleen: there was a big story in the washington post of elon musk saying he was going to lay off 75% of the headquarters, he said no, what do you expect next? ed: he has some clear ideas of how he wants to change the twitter platform.

that includes the business as well. about how the business operates. how it does product of a limit. its i.t. infrastructure, literally the data centers and computer power that it has on-site. the basics of it are he wants an open source algorithm. he wants to tackle the box issue -- bots issue. he wants to look at the idea of an edit more broadly and the best version of how an edit would operate. he wants to protect twitter, same twitter plays an important role as a global town square, so let's expect some policy changes, too. kathleen: thank you so very much, ed ludlow, breaking down this breaking news for us on twitter. that is it from "daybreak: asia." market coverage continues. keep it right here. this is bloomberg. ♪