>> you are watching "bloomberg

daybreak: asia." coming need to you live from your, city, hong kong. >> -- new york, sydney, hong kong. >> australia has come online, the top stories this hour, amid high bond yields, the investors are focused on decisions from the rbn and the fed. president biden warning that oil companies will be taxed as a windfall of war, the if they do not invest into production. we hear exclusively from the chairman. >> we are going to, thrive again. we did not have any takeover discussions at that point. we want to stay independent. >> we have the open of the asx 200 come at the start of trade there is unchanged but futures

turned negative, this is a wait and see ahead of the rba rate decision to later the expectation among echo -- economist is 25 basis point hike. we are watching in the bond space, we are seeing the aussie three year and 10 year yield move high here. a reflection of what happened in the treasury market overnight, i will let kathleen get through the details in just a moment. in terms of the reaction in asia, it is most pronounced in the kiwi to year yield at the start of trade. this is down to that that rate decision and playing in those of the yen, we see the weakness. over the past two sessions. . more details about the size and scope of the recent interventions. we now know that officials spend more than $42 billion in october defending the weakness in the currency. speaking of currency weakness we are watching the offshore yuan

among a 15 year low against the dollar. not only significant given that we do have the u.s. china yield gap in focus. that could drive outflows just a reflection of the risk in china, the weaker factory service activity highlighting to us how much covid zero is weighing on the economy. >> we saw in the pmi's overnight, didn't we let's move on to the u.s. on market. waiting for the fed, reserve bank of us triller, waiting for the bank of england. that is what is all about come we saw the stock market today after a good surge in october, we had stocks closing lower, the s&p was down three quarters of a percent, nasdaq down 1.5%. in the futures trade you see a little bounce off the low, now they have the selloff and wait and see what happens next. the fed will not happened until wednesday, the treasury market waiting for the that, they are

convinced there will be a 75 basis point hike, looking for what the fed signals for december, is it 50, stocks thinking if there could be a pause. the bond market is more convinced the fed will stay of the hawkish pat. we's -- path. we see in the futures market, there is a selloff, the 10 year -- the two-year up to .4%, oil is put that last on the list come as a pretty important for the day, for the month, look at the big opec cut 2 million barrels a day. before the date, they were looking at what vtol said, a big oil maker and producer there is a demand destruction. other things hitting the oil market, 11 lower in price today, i think that this -- a little bit lower in price today, this is all about waiting.

>> let's get some insight when it comes to fed and rba expectations, chief rates correspondent, we are joined now the star for the fed -- rba i should say. is it fair to say the ski out -- steep upper forms for the bond market is over? >> it is a possibility, they went so far so fast that they went from being 90 basis points above u.s. treasuries back in june 2 as much as 30 basis points -- to as much as 30 basis points below. that is a tribute to the way the rba has managed to credibly hike rates rapidly at first and then ease off before others to align with what is this say the particular features of the australian economy. we have far more floating-rate mortgages. when the rba moves it has a

bigger impact. we see some serious signs of a housing market slowdown. housing having a bigger wait in the australian market than some others. the australian market is so tightly linked to china. china's economy is in serious trouble. that is not new news as it were, this hitting home especially, one of the things in encouraged a lot of people to take positions in the bond market to go short the aussie dollar recently is that iron ore has continued to drop. that is australia's biggest export earner. if it continues dropping that signals a slowdown risks are greater here than the inflation that would hang around. >> how are you assessing right now, the strong liberations of whatever the fed decides this week will be on other markets? on asian markets? they could keep going and say

the end is not on site -- in site. they could say we have a recession sign in the horizon we could heat, is the rest of the world ready to pull away from the fed? >> they could be as ready as they like, does not mean they will. the transmission can-isms, -- mechanisms, there are two chief ones, if the fed is on the hawkish side and makes it clear we are a long way short from a pivot because we do not want to repeat the mistakes of the 1980's. then that brings the currency channel into play. we have the yen sitting stronger than 150, not that far away from where japan decided they had to come in and spend $42 billion as annabelle was mentioning. japan still has more than a

trillion dollars of fx reserves. it can dip into the pool again. there will always be the worry come at some stage there will reach the limits. in particular if they start to spend a lot then they have to start selling treasury defund intervention. that sends treasury yields up the dollar further up against the yen. at that stage they run to other problems. the alternative channel come if you get surprise from the bad, you get a volatility hit in the bond market, that is not what the bond market is expecting. the bond market volatility has had a outsized impact on risk assets around the world. >> thank you so much, garfield reynolds. let's get to president biden taking aim at big oil planning to call on congress to pose tax penalties on them for what he calls outrageous profits. >> oil company's record profits

today are not because they do something new or innovative. there profits are a windfall of war. a windfall of the brutal conflict ravaging ukraine. >> let's bring in bloomberg's su keenan, is there any president for this kind of thing? will biden pull off something that big business people are saying not exactly capitalist. >> there are many that saying it is all but impossible for him to get congress to impose such tax even postelection. where you will have more republicans in the senate, even now where does evenly split. if you drop in and bloomberg you can see that oil profits are indeed strong for number of reasons. this is not a new thing. for the past decade, democrats have tried many times to impose a tax and discourage big profits. let's take a look at why the five dollar gas prices this

summer, seven dollars in california have put this idea back on the map. it is really almost impossible. yes, to private company's attacks them is unusual you can look at other companies they are not required to give back, that is what biden is doing here, many say the message behind the proposal is, maybe should reinvest in more production. you are looking at some of the big oil companies. they took a hit midday, most of them finishing in the grade, your today will see why they are in the walls i for up -- bullse ye for biden, republicans are quick to hit back, they say biden's policies have discourage companies from producing more oil, big profits your today and for the year. >> we actually saw u.s. crude prices posting the first monthly gains since may. >> a little pullback in asia trading, we did see oil for the

month of october finishing the green almost up 9%. your today take a look. we had huge gains earlier in the middle of the year around june. a lot of the pullback came, we are still very strong double-digit gains year to date. opec secretary-general came out with the reasons for the october decision to cut back on oil production. the cutback in production has a lot to do with why oil price is higher. opec secretary general reiterated it is excess oil supply that has them cutting back. they say a surplus in the fourth quarter and again in early 2023 they also see a recession in europe as well is likely in the u.s.. back to you. >> su keenan here, they are vowing to stay -- credit susie is a vowing to stay independent, they are struggling to convince investors that a radical restructuring plan will revive

the firm. >> we figured out where we need to go, we took some bold and very important decisions for the group. it is now looking forward and executing that plan. >> you think the worst is behind you? eventually, or things are kind of in the works and that you might actually have to raise more capital. is that in the plan or even part of the plan? >> no, we announced the capital increase it is fully underwritten, we will do that it is about execution. step-by-step, quarter by quarter, we will come out with what we do with a securitized product. we will show progress operational transformation on the cost production --. reduction program we came along way as a group. we really came along way. we are taking the right decision. we are looking to some of the

fundamental issues that we have, we look at the core of the business, the core of the origins of the company. we remind ourselves of the key strengths, that we are going to execute. i am all excited. >> will have more from her exclusive -- interview from credit susie german labor to this hour -- later this hour. >> brazilian president bolsonaro has yet to be seen or heard from after his defeat in sunday's runoff election. leaving people guessing if you would. concede he has previously criticized electoral system. lula's victory has been recognized by the heads of the senate and lower house along with some alice. the intruder that allegedly attacked u.s. how speakers nancy pelosi's husband with a hammer has been charged with assault and kidnapping. he faces to counts that carries

maximum sentences of 20 to 30 years in, they allege that nancy pelosi was the target, he broke into the home armed with zip ties, tape, rope, at least one hammer. experts say crowd density above a critical level may have triggered the crush and south korea that killed 150 people, he told bloomberg that once density is too high, turbulence can happen without any specific misbehavior. 140 police on duty when the crowd swelled to 100,000 people. some of wall street's biggest names landing in hong kong for the first visit since the pandemic, defined criticism from lawmakers and growing tensions with china. goldman sachs, like rock executives are among the executives -- three top executives have dropped out. australia is working to expand its production of rare earth as

it looks to provide a alternative source for global supply chains, resource manager says it is a pipe dream that western countries could soon and the reliance on china for critical materials -- minerals. exploration is still happening and the p could be -- the peak could be five to 10 years away. 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 am vonnie quinn, this is bloomberg. >> still ahead, vladimir putin demanding a safety guarantee for russian ships in the black sea after suspending the ukraine grain deal, we will discuss the impact on wheat and commodity markets. equities -- vishnu says markets are staging risk rallies on pivot. this is bloomberg. ♪

heidi: a survey by bloomberg believes that the strong dollar will weigh actively on the u.s. economic outlook and could alter how high the fed ultimately raises interest rates. our next guest says our -- policymakers may be under accounting for the tightening. the consensus seems to be that while the pace of dollar strength moderates sub, we are

still ways to go before we see a pullback in the greenback. guest: i like how that rhymed. yes. it is some ways off. usually does a bit late in the cycle. the dollar has typically receded well before peak rates. one can attribute it to perhaps the uncertainty around where peak rates are, how long they will stay there. they could also be the tina effect come of the alternatives do not look pretty that means the dollar does not bellow so quickly. you are absolutely -- mellow so quickly, you are absolutely right that policymakers are under accounting. it could hurt economies outside the u.s. first and a lot more and only later, and less so the u.s. that necessarily means, it does have the makings of some financial turbulence attached to

it. heidi: you have written about the idea that a lot of the exuberance we have seen and the targets, has been on the expectations of a pivot. does it matter if the pivot is a pause or a plateau, or potentially in the case of the rba even a u-turn? guest: i think it does matter. the trouble is that does not matter to the market so far. we have not defined what a pivot is. we are happy to trade it. i think what is understandable, making the transition from a acceleration to a pause. one can assume that much. in today's condition, the trouble is the higher for longer guidance on rates. there seems to be more agreement on where that higher might be even though there is some softness around it. whereas the longer come is where the bigger disagreement is.

this is where the pivot will start getting slippery. >> there has been a lot of concern, certainly at the imf world bank meetings that september, a lot of handwringing of what aggressive rate hiking means for emerging markets. he said he could see doing 50 or 75 basis points at their next meeting, no he is not concerned about the fed. they have to get inflation under control. is that, does that mean, at least for them, other emerging markets they are ready to deal with what they have to deal with make sure the fed gets this done correctly? guest: i suppose that must be the way to approach it. central banks starting position is that they are attending to the needs of the domestic economy first. even if it is the global context. i think we would all pretty much agree that the fed mentors.

it is a low bit like gravitational force. a huge massive object out there i cannot pretend not be affected by gravity. >> where would you go with your money right now? china's looking iffy, property crisis with more and more people going belly up the covid strategy not ending. is there a region in the region you would go for? stay away from china? what would you think? guest: is a very tough proposition now. clearly the experts out there would tell you that there are value propositions in china given the sell down in the tech space and some of the other perhaps ian -- infrastructure space or ev's. the lack of policy clarity means all of these entail significant risks. perhaps the one thing around this is really going for

anything that will give us a little bit of a inflation hedge given the stickiness around food, fuel, geopolitics. that just means quality assets that have earning power and pricing power. i do not think we can do rod brush -- broad brush industries because there are metro risks if you see the dollar going stronger. it is difficult to plot the plat -- path now because the trajectory of rates and fx markets is a lot more uncertain. >> quality earnings, pricing power, and earnings power, i will remember that. thank you so much, head of economics and strategy at mizuho bank. plenty more to come on "bloomberg daybreak: asia." this is bloomberg. ♪

>> a check of the latest business flash headlines, elon musk has consolidated control of twitter coming the sole director after the removal all nine board records -- directors. he nearly started mold in the company to his liking come his first few days on the job has been fueled with speculation about how you will handle content moderation how many jobs he will cut. american express is joining the small but growing number of firms to post salary ranges with top job listings across the u.s. even were not recovered -- required by law. all companies with four or more employees must add salary ranges if you post in new york city on tuesday, mx say they will be -- america express a's they will have the same transparency across u.s.. >> sources told would bring the equities and fixed income traders can work remotely today's a month, the team is dominantly based in new york and

the mandates very for other places of the business. haidi: some of the stories we are watching today, japan, pmi manufacturing data for october doing the next hour. the number has been on a declining trajectory since april. getting a read on monthly vehicle sales, rising 17.8% year on year in september, they are reporting second-quarter results today flight -- with the likes of toyota and sony. in korea, trade data is due, exports dropping 2% year on year , bank of korea will release a list of october rate decision meeting also get the nobleman factoring pmi as well. has been on a downtrend since may. kakaopay is posting third-quarter results today. let's take a look at how we are setting up for rba decision day of that will potentially affect trade, we are also in a point out, this horse race tends to

pivot -- that the nation come we see trading volumes on cup day lower than normal trading days. the upside a quarter of 1% trading in new zealand -- sydney. aussie yields continuing to sit below u.s. rates, that is the expectation he will continue to be the buyers lower in the near term even if the rba surprises with 50 basis points instead of 25. u.s. futures looks moderately positive. coming up next we will get more of our exclusive of the credit suisse german, the bank is not for sale and will drive again.

haidi: you are watching "bloomberg daybreak: asia," 30

minutes into the trading session you see the fx 200 --asx 200 a low bit higher, it is in the wait-and-see mode we have the key rba decision, the 25 basis point hike seen by most economist. overall we are looking at fairly subdued trading, nikkei futures coming online as well. looking higher for the start of trading in tokyo and seoul 30 mins from now, traders also focused on the fed rate decision do later, given that we are keeping an eye on what is happening with the yen. we have the continual yield cap is looking range bound. the volatility on a one-week basis is still the trend upwards even though we are off the recent highs. yen traders also focused on what comes of the rba conference later. we do see a more hawkish stance from officials there could lead to more -- further losses for the currency given that we do

have the general unwinding of additions from last week whether was the expectation that central banks would be slowing the pace of rate hikes. there is a lot of focus on what the fed and jay powell signals later in his press conference. the size and scope of pace of rate hikes in december in the months ahead. one thing that could limit the losses for the currency, we still do have a lot of intervention, wariness around further intervention. you can see that in the size and scope of the rbas or rather the japan intervention the yen the market in october, at a record $42 billion. that is how much policy makers and official spent to defend the japanese currency. kathleen: japan very serious about defending the yen. he convinced the bank's newly unveiled structuring plan will allow it to come out stronger.

the swiss lender will thrive again and is not for sale. >> this is a fantastic franchise we should not forget it has 166 years of legacy. we have fantastic businesses. this is the core of the group. we are going to thrive again. we do not have any takeover discussions at that point we truly believe we we on -- we want to stay independent. >> speaking of historic strength it seems to me now, some investors are nervous about the stability of the bank. many are holding off from bringing in new money, business, till you have your house in order. what happens if the clients do not be coming back meaningfully before 2025? >> there were a lot of rumors about credit -- credit susie spreading come a look at the liquidity, the balance strength,

and you clearly saw the reaction is where the key objectives of the announcement. 81 spreads came significantly down. that is a very strong signal of comfort. >> there was a significant amount of outflows the first two weeks of out over. the firm has said things have stabilized, not quite reversed, you expect them to reverse? >> it is true with the beginning of october we had the social media storm we had outflows that clearly stabilized we had some inflows coming, i will anticipate you will have further inflows in the weeks and months to come. >> what are the risks of the outflows accelerating? >> i cannot see them at that point in time. they have come stabilized completely. as we are, anyway, we are not in a blackout period anymore. we might to access the overall market we have a lot of clients that told us they will come

back. >> seems like you are exiting other businesses where profits are coming from. what is the logic in cutting, cutting, cutting when the other side of the equation is the ability that you can generate those profits and more. >> going forward, credit susie is a wealth management franchise centered around entrepreneur business clients, we do not need to be around the businesses that are isolated from the rest of the group. that is why sp, we are in exclusive discussions with apollo, and i am highly confident over the next week we will come to an agreement. >> what about the asset management side come is there a sale or parts of it? >> these are all rumors, we are the wealth manager, asset manager goes well you -- alongside. we do not need to be the biggest globally, but we need to have

those capabilities that we need, of a product and product provider perspective from the wealth clients and the institutional clients. >> the restructuring is being funded by a new investor, the saudis. there are questions raised around the swiss government allowing this sort of stake given the saudis human rights record. how do you address this? >> we are very happy that we have investors like to saudi national bank it is a private institution. i think, this is also a region that is growing, we are very happy that we could secure that type of investment into what they believe is a great franchise, credit susie. >> credit swiss speaking exclusively to ivanka -- yvonne man. >> president biden will seek to

impose higher taxes on oil price -- companies that reap windfall profits without reinvesting in production. in a brief speech biden called on big oil to put consumers before profits. it could be a promise that is difficult to deliver upon with many democrats to fight the taxes successfully -- to impose tax unsuccessfully for over a decade. they said supply cut -- glut was the reason to cut production. they see it into early 2023, it had angered the u.s. biden worthing of consequent ask of consequences for the saudis. >> inflation in the euro zone going to an all-time high, gdp of the block climbed .2% in the third quarter beating estimates, the expansion is widely expected to shift into reverse in the coming winter.

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 am vonnie quinn, this is bloomberg. haidi: south korea investigates is halloween crowd crush tragedy. they say the density may have reached such a level that made such a disaster almost inevitable. our reporter joins us now with more, we have all seen the horrific videos from that evening. tell us more about the investigation and what the experts are now saying. guest: sure, haidi, they started an investigation and they are analyzing video footage from witnesses and security camera. they are looking to some of the accounts from multiple witnesses on social media, media, and local saying that may saw a group of men push push pushing people. that is when they saw people fall like dominoes. right now, the first that have

my colleagues spoken to, the density of people that were packed into such a narrow and restricted alley that had a slope they have reached a level that made the disaster almost inevitable. there may have been a gradual buildup of people who came to celebrate halloween. they may have found themselves trapped in a space where they were pressed so hard they had trouble controlling their body movements. remember, the narrow alleyway where most of the casual these happened, one side of the alley is blocked by the wall of the hamilton hotel, the two intersections were also very packed and limited the movements of people. the alley seems to have -- appears to have had a constant inflow of traffic, south korea newspaper and social media there are now criticism about why the

subway operators not skipped the stop to control the human traffic that was going into the saly. >> one of the bloomberg stories say when you get to a density of five people per square meter is cramped but manageable, once you get 8-9 per square meter the situation can become very dangerous. which obviously did this. whether the authorities say now? they will investigate to see what went wrong, are they talking about making permanent changes, will there be any repercussions if you saw people saying push, push, push would they be in trouble, how about the authorities that do not know what is going on and do some the coming but will they do next? -- what will they do next? >> authorities say the country will come up with safety measures for events such as this one, there were no clear

organizers that oversaw or predicted the crowds. they are try to come out with some of the new regulations, for such events, where people gather in a huge amount. there will be no -- even though there will be no clear organizers, local government or police can predict the possible human traffic and could have safety measures in place, those one-step south korea can make going forward. their response over this disaster, the most deadliest crush in south korea history, it will take time. some of the criticism has been raised about why police did not foresee so much density would take place. on the halloween night. this has been the first halloween since the pandemic, the has been listed -- has been

lifted, there was expected a lot of people enjoy the halloween weekend. haidi: our bloomberg reporter joining us from seoul. up next, look at how the world is progressing in the carbon emission targets ahead of cop 27, being this weekend the road and at zero. this is bloomberg. ♪ hard to run a business on hayour own. make it easier on yourself. with shopify, you can have everything you need

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>> wheat prices soared after russia suspended the deal guaranteeing say passage of ukrainian exports. let's bring in joe davis now he is the director of commodity sales that futures international. joe, maybe this was not 100% people -- surprised to people knowing how iffy things are with russia right now. it is interesting that the u.n. along with ukraine and turkey will continue the great deal despite russia pulling out. what does that mean if they're worried about ships, about what might happen if the shipments going on with russia saying no. guest: right, with the u.n. behind him, it will happen -- them, it will happen. even if russia chooses to be in the agreement or not we will see grade move out of the black sea -- grain move out of the black

see if the u.n. is behind them with turkey and ukraine and other nations awaiting the grade -- grain0. we will see it move. irregardless of russia being involved or not. kathleen: we have seen grain prices, fertilizer prices, all kind of prices surge usually because of this -- hugely because of this war and went has done. what are prices going to do now? what people say, ok the u.n. will take care of it? will they keep prices high? what is driving the market now? guest: basically the market is trading what is putin's next move resulted tit-for-tat going over the weekend with the drone attack on the russian ships in the black see. that is what started this whole thing with a pulled out of the agreement. russia attacked ukraine and took

out power and water plants. so the market traded up today for weed and is expected to open higher again tonight -- wheat, and is expected to open higher again tonight. i do not expect we will see higher than the initial attacks and less on the catastrophic happens out of russia. some sort of dirty bomb or nuclear, which should never be used. that is the only thing that would get the market to trade up beyond the highs of earlier in the year. consumers are already used to playing a higher -- paying a higher price with inflation. the end-users with supply chain they are used to dealing with this coming out of covid. i do not think you will be the price shock that the markets saw earlier in the year. kathleen: it is interesting, the

warriors -- they are also vying with the demand issue that the slowdown might cutting to demand for global grains. how much of that will be a factor when it comes to the bullish wagers being placed? guest: that is the one thing earlier in the year when we had the inflation trade going on with covid. a lot of the longs in the market and it quite a bit of shorts in the market. when the attack first happened in the early winter last -- earlier this year, all the shorts got squeezed out. they have not come back to the market to sell. there is some length in the market. the funds that are the speculative shorts, they are not coming back to the market. i think, any type of short squeeze will not happen like it did before. haidi: when you take a look at

harvest expectations you are expecting a bumper harvest in risher -- australia and russia itself. was it look like next year? guest: we should be fine, the grain should move out of ukraine. russia will also sell grain to other nations that will buy it such as iran and china. so there will not be that pressure on the wheat market. the other thing today we had the crop conditions come out. the initial crop condition for the winter wheat. it came out at a record low level for the good to excellent rating. that will cause wehat -- wheat to be higher today on the open. haidi: joe, great to have you with us, joe davis director of commodity sales that futures and national.

cop 27 begins, despite last year, the latest tele has the world to warn by -- warm by two .6 degrees celsius by the end of the century. we are joined now for a preview, i did a climate panel a week ago -- a couple of weeks ago. they said we need to stop thinking every cop will be a monument of groundbreaking cop. is that the case for cop 27 do we need to manage expectations? guest: i would agree with those comments. cop 27 is built as an limitation cop. the ideas not to get more ambitious long-term. . target analysis. it is to focus on the nitty-gritty details of getting implementation done. still on top of mind is the country's 2030 emission targets. the u.n. said they are on track, right now if you tally up all the come -- countries 2030

emission targets you're still looking at emissions in 2030 being a little bit above 2010 levels. we need them -- we need them to be 20% lower than 2010 levels to keep the two degrees target a lot. >> how much energy transition investment does the world need to get on track with the paris agreement goals? >> there has been a lot of scenarios done by the intergovernmental panel on climate change agency. there is also other scenarios as well. the numbers that come out a fairly wide range. they look as low as $40 trillion to as high as $114 trillion for the next three decades. while that may seem relevant divergent -- seem a little bit divergent they have the consistent message of how we should increase ratio investment

and low carbon versus fossil energy supply. to give you the scale of magnitude you need to increase come if you look at the period of 2011 to 2015 that ratio was around .5. for every dollar invested in fossil fuel energy supply, they were investing about $.50 and low carbon. the letter part of the decade that number went up 2.7. to .7. this year we are expecting .9. by the end of 2030 we are needing a 10 times increase in magnitude. kathleen: up next toyota expected to report earnings with a carmaker warning of a production target mess. -- miss. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines, credit suisse german says the lender is not open to take over discussions after unveiling the long-awaited turnaround program. shares have slumped more than half this year, leaving the 166 -year-old institution vulnerable to take over bids.

he says a full capital increase will make the lender rocksolid. >> we came a long way as a group. we really came along way. we have taken the right decision. we are really looking to some of the fundamental issues we have. we go back to look at the core of the business, the core of the origins of the company. we remind ourselves of the key strengths, that is what we are going to execute. i am all excited. i am all excited. haidi:aia group has import -- reported a 1% growth. the measure of future possibility of news paul's -- new policies sold rose. aia started a rebound in activity shanghai and sales to mainland chinese visitors to macau. bloomberg has learned that two senior apple executives are stepping down, the vice

president of online retailers leaving her decision and the chief information officer mary denby is retiring after three decades. that means apple has lost three vice president in recent weeks. wynn resorts surged after the billionaire acquired a stake in the company. giving them a 6.1% stake, making him the second largest individual investor after the cofounder. kathleen: let's take a look at what is happening to us trillion stocks as we wait for the -- happening to australian stocks as we wait for the rba decision. it could be a surprise if it is 25 rather than 50 today, the asx 200 holding onto a modest gain, new zealand stocks of flat, s&p futures up after falling on the

cash market of -- haidi: some of the stocks we are watching when trading begins in japan and korea, toyota in focus and sony reporting later today. panasonic could be active in the trading, looking at airlines, they are boosting their upper income forecast, better than expected. the guidance missing the average analyst estimate. in south korea we are watching defensive stocks, they say military action between the u.s. in the south, raising tensions can we have the market open coming up next. this is bloomberg. ♪

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>> this is "daybreak asia."

we are counting down to asia's major market opens. the big central bank action is the reserve bank of australia. we are waiting to see if they go ahead and do the more cautious 25 basis point move or if they are going to surprise everybody with 50 basis points. i think that would get the markets going across the board, haidi. haidi: a u-turn would be a non-consensus decision today but it's going to be part of the consideration. a difficult meeting for the rba given how overheated that cpi report most recently really was but also seeing some of these indicators that the property market in major cities is starting to feel the impact of higher rates. that's take a look at how we are setting up. >> we have the open now for korea and japan and also the open of cash treasuries so we are just giving a particular watch on how that two-year opens here given it moved above 4.5% in the previous session. that yield differential between

the u.s. and japan putting the yen at further weakness or the risk of further weakness ahead of that fed rate decision coming up on wednesday. some traders are saying actually, the risks are to the downside for the yen could be capped by further intervention from authorities and we do know now how much they spent in october alone defending the weakness in the yen coming in at four $42 billion. in terms of the outlook for stocks, we are pretty muted. we have the nikkei opening looking like this but if you change now, we have the open of korea as well and those moves in treasury yields overnight certainly did way on big tech in the u.s. session so at the start, we also see the cost at -- kosdaq trading higher. the kospi trading higher. further weakness here. we could see further downside for this currency given the bok is not able to match the pace of

rate hikes from the fed. we have trade numbers coming out, focusing on how the trade balance moves as well given the implications for policy makers korea. quickly, a check on the open for australia. we have the asx 200 one hour into trading here and we are still holding in positive territory, very much focused on the rba decision. we are seeing the 10 year yield climbing ahead of that and the open for crude lower at the start although it did cap its first monthly gain since may. risk to the outlook from the demand picture in china. kathleen: they certainly are just as advertised. the first time in export have shrunk in nearly two years, ending a 23 months streak of your and your gain since november 2020. exports down 5.7% year on year. the first 20 days of the month

were down 5.5%. imports are certainly up strongly, nearly 10%. much more than the survey was looking for, six point sense -- 6.6. factory output has been down. we are going to get more of that later when you look at their pmi's for the month. china slowdown as you know is one of the big factors not only for korea, major exporting nation. but for countries across the region. haidi: huge reverberations from the slowdown in china. let's get more on a big exclusive for bloomberg. he is convinced the newly unveiled restructuring plan will allow it to come out stronger. our guest joins us for more on your k-swiss of conversation and so much that was interesting in this conversation but really, you know, he tried to strike this tone of optimism and the only way is up from here.

elong: really trying to turn the page -- yvonne: really trying to turn the page but there's so many things credit suites has to get right. when it comes to the securitized products business, they have to sell that and carve out this boutique investment bank and get it funded. they have to get enough subscribers for this $4 billion credit capital raise as well so there's a lot of things going on. they have to kind of get right -- get it right. there's a lot of speculation out there about whether credit suisse is going to be a takeover target given just met their share priceline could be attractive -- just that their share price slump could be attractive. take a listen. >> i think we figured out where we need to go and we took some bold and really very important decisions for the group and it's now really about looking forward to execute that plan.

>> safe to say you think the worst is behind you and do you think that things are still kind of in the works and that you might actually have to raise more capital? is that still in the plan or is that part of the plank? axel: we announced capital increase. this is fully underwritten. we will do that and now it's about execution. step-by-step, quarter, we will come out with a securitized product. we will show progress on transformation on the cost reduction program. i think we came a long way as a group. we really came along way and we have taken the right decision. we are really looking to some of the fundamental issues that we have to go back for the core of the business, the core of the origins of the company, so we remind ourselves of our key strengths and that is what we are going to execute. i am all excited. i am all excited.

yvonne: he is excited and tried to avoid some of these questions about how many bankers are going to be leaving here in asia or even just in london given that boston is very much a u.s. sort of focused bank and when it comes to him being in hong kong, he's here for the event that is happening today and tomorrow as well. he still thinks there's a lot of inherent growth in the region and when it comes to those outflows that we saw, the tremendous amount we saw, given this barrage of news and social media twitter storm so to speak here, he says, look, things have stabilized a bit. he thinks that she anticipates things to start reversing and he is starting to hear things that clients are willing to come back. haidi: -- kathleen: look at the headlines on the terminal. they hired 20 banks for a $4 billion capital increase so they have a lot riding on this. the saudi backer says a 9.9%

they kiss pretty big and enough for now. it's not the best environment necessarily for investors, for economies, with central banks hiking aggressively and recession looming. what would you say about that kind of question? yvonne: the geopolitics side is interesting, right, because if you look at this surprise investor that's really helping them fund this restructuring, it is the saudi national bank. the fact that obviously, there's a lot of questions about the swiss government in allowing this sort of thing to happen given the saudi human rights record, they tried to talk more optimistically saying they are a good investor and they are pretty hopeful about this partnership underway here as well. we also talk a little bit more about the china outlook, given the fact that the geopolitics between the u.s. and china here right now, does that change the overall vision of the region overall and growth in asia? he seems to be quite hopeful about the china story even when

it came to the issue of taiwan. there is this question about, you know, is there any sort of signs of discussions he's having with his clients about what happens if there is more sanctions on china? there is a sort of innovation into taiwan. he said, look, we will walk that routes when we get there. pretty hopeful about the region overall staying committed here in hong kong. haidi: yvonne man in hong kong. pretty tumultuous geopolitical forces that we are dealing with at the moment globally. let's bring our next guest who is honing in on the strong dollar, saying it is clearly taking its toll on the emerging-market complex. the coo of asset allocation at principal asset management. great to have you with us. we are seeing a reverberation when it comes to earnings season. a number of u.s. companies with

the exposure seeing the downside of that. how much longer does this play out given that we have not really set up for a pivot and perhaps an eventual plateauing or pause from the fed. do we see dollar strength until then? >> i think the two headlines for 2020 really around the excess inflation that ramped into the global economy and secondarily, it is the strong u.s. dollar which i think, a lot of investors by surprise. we expect that strong dollar trend will continue at least into mid to early 2023. we believe a strong u.s. dollar likely correlates with peak u.s. policy rates in early 2023 and it's likely not until then that investors get some relief from paying, for example, debt denominated in ust out of the em space. haidi: at the same time, we have seen a more resilient, broader complex here in asia.

especially in terms of where central banks in this region are really placed. where do you see the pressure point? where would you see potential opportunities? >> as you think about sort of again that em complex, it's acceptable to look around asia and to see whether it is opportunities from a global reopening that is still taking effect, whether that be through thailand, whether that be through taiwan, whether it be through other areas, there are trades that will make sense tactically. that said, we like the u.s. over the rest of the world and i think that there is an opportunity for u.s. equities to continue to drive that leadership. that is where we have been positioned over the last several years and we think u.s. overweight can continue to outperform tactically in 2023. kathleen: i had a question about the dollar. you said you think it will hold its strength until early next year. what currencies are going to dominate after the dollar? the

pound? the euro? as i'm just thinking, we may have the dirtiest sure in the closet but it's clearer than a lot of other ones. >> i think what investors should likely look for in 2023 is a leveling off of a lot of the extreme movements that we have seen between global currencies in 2022 so not expecting a strong set of rebound and recovery from japan or europe. in fact, we see let's likely just to find a market where currencies are relatively stable for a period of time. as global central banks began to -- together at the same time, to ease off of their pace of tightening, that could give a respite. multi-asset investors have to look and say what kind of risks do i want to put into currencies? they have been quite a surprise market in 2022.

we expect perhaps a bit more calm in 2023. kathleen: everyone is talking about the big pullback and the big five mega cap tech stocks. you say that mid-cap stocks are well-positioned. why do you like them in what should investors be doing there? >> the interesting thing is valuation. when you look across global equities, it becomes pretty apparent that the pockets of high valuation are pretty narrow. they are just limited to that mega cap u.s. space is really where you see above average valuations. conversely, looking at mid-caps and small caps in the u.s., you do find they trade at a lower valuation than large caps so you can rotate, for example, and get into a much better long-term valuation perspective on mid-caps, and u.s.-made caps off are more domestic focus in an environment where earnings repatriation and other forces have made transnational earnings a bit under pressure.

we think more of a domestic focus that exists in u.s. mid-caps can result in more of a steady, predictable earnings stream in 2023. haidi: when you take a look at broader structural shortages, where are there still opportunities as we ease out of the period of easy money? >> when you think about structural shortages and the path towards easy money, one of the things that we have certainly focused on has been for fixed income investors and what happens with the investment grade and noninvestment grade components of the market. interestingly, while equity investors have certainly priced in the potential for recession in 2023, we have not yet seen the kind of movement in spreads either in the high-yield space or the ig space that suggests that debt investors are indeed concerned about recession in 2023. when we think about opportunities today, i would watch out for where you see

spreads beginning to move. that could be an area where you see some consternation but through that, opportunity exists from finding those kind of long-term winners that came to establish themselves as firms relative to their competition. kathleen: we have to give you our markets live question now. what is the most bullish midterm outcome for stocks? >> well, historically speaking, the most bullish result from the midterm elections in the u.s., at least from the investor perspective, would be a divided government. the u.s. typically does better when you would have a lack of consensus on the direction and what you end up getting is essentially a bit more static in the political landscape. when investors know what to expect, they are often pleased. they don't like surprises. if anything, i think a divided u.s. government would be perhaps the most bullish case for investors. haidi: great to have you with

us. cio of asset allocation at principal asset management. let's get you to vonnie quinn with the first word headlines. vonnie: thank you. president biden says he will seek to impose higher taxes on oil companies that report and falls. gasoline prices remain high one week before the midterm elections. in a brief speech, biden called on big oil to put consumers before profits come a promise that could be difficult to deliver upon with many democrats having fought to impose the tax unsuccessfully for more than a decade. pres. biden: in a time of war, -- has a responsibility to act beyond their narrow self interest to shareholders. i think that responsibility to act in the interest of consumers , community, and country, to invest in america by increasing production and finding compassion. vonnie: jair bolsonaro has yet to be seen or heard from after his defeat in sunday's runoff election, keeping voters guessing on whether he will

concede. he previously criticized the system. guatemala has been -- lula has been recognized. some of wall street's biggest names are lending in hong kong on their first visit since the pandemic, defying criticism by u.s. lawmakers and growing tensions with china. goldman sachs, morgan stanley, and blackrock executives are among 200 attendees at the global financial leaders investment summit. three top executives have dropped out including jonathan gray. experts say crowd density above a critical level may have triggered the crash in south korea that killed more than 150 people. one academic told bloomberg's that -- turbulence can happen without any specific misbehavior. 140 police were on duty saturday in the seoul nightlife district as the crowd swelled to 100,000 people. global news, 24 hours a day, on air and on bloomberg quicktake,

powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. kathleen. kathleen: thank you. still ahead, a look into the controversial accounting practices that enable companies to tout greater climate progress than they actually achieved. up next, australia looks set for another rate hike in just a few hours. we will be previewing the upcoming decision just ahead. this is bloomberg. ♪

haidi: the rba faces a tough task, deciding whether to persist with smaller interest rate increases or do a u-turn. for more, let's bring in our economist, james mcintyre. the fed excited to go 75 and so is the bank of england.

there would be -- they would be tempted with that report? james: the cpi is clearly a factor and one of the factors that is driving the fed and the boe to do what we are expecting to see from them this week, but the key difference that we are seeing between those economies and what we are dealing with here, for the australian economy, is the domestic labor market. we don't have those same wage pressures in australia that are going to drive that sort of sustained inflation that we are seeing offshore and that is when you are seeing the rba is going to be pulling up much, much shorter than the other central banks as they continue with their hiking. kathleen: third quarter cpi is much better than expected inflation last week so how is the rba going to fold that into their rate decision today? i must say, i am very excited about them getting their monthly cpi, too. james: the monthly cpi has been great. it's really giving us a few more clues as to how those inflation dynamics are evolving but it's going to be really important for

how the rba interprets that information that we got last week in the cpi. in november, may, february, and august is when the rba, those meetings -- they considered their updated inflation forecasts and the third quarter cpi is the linchpin for that. they will be looking at that data to ask what drove it and where is it going? are those things going to be -- are those factors going to be enduring? what we found in their commentary was that a lot of what we saw in the third quarter was a bit of a delayed impact from the fuel price hikes that we were experiencing in the first half of 2022. they drove freight costs up. when you look at where that is going and that is where the labor market is really key down under, we are not going to be seeing that wage driven inflation sustaining the inflation cycle in australia the way it is offshore and that is where we have that rba looking through that little bump we got in this week's cpi. haidi: that implies 125 basis

points still to come. may be a regular hike at every scheduled meeting. terminal by may. where do you see the cycle picking? james: we think there is a strong risk that this could be the rba's last hike and that would be a very strong surprised markets. there is a lot of timing that has already been baked into the australian economy. we do have variable mortgage rates. there's quite a rapid relative to other central banks pastor but what we have already seen is yet to show up in the economic data. we will be seeing that softening. we think that there is another hike in december after this one. the impacts of those beginning to really show up and slow the economy next year. when the rba comes back from the australian summer break, after december, the next meeting is not until february. they might be finding that the data has turned and they are standing still and that would be something that is quite different to what is currently

expected for where markets are right now. kathleen: have you been looking at the rba with the final rate hike of the year to slow it down a bit? do you think they will keep it down to 25? i think it's a very wise point about the fact if they get that little bit longer than usual lag, they might be in a fix at the beginning of the year. james: that's right. i'm calling for that last hike to be a 15 basis point and that would get the rba back to a 3% cash rate. they have been a little out of their normal 25 basis point kind of rounding over the last little while, but the consensus is that it could be either a 3.1 or potentially a 3.35 for some of the forecasts out there for where they pick next year. haidi: doesn't matter? -- does it matter that it's -- james: not really. it will not dissuade them at all. if we look at the history of the rba's moves, it's a very busy

day. even though it's a public holiday in parts of australia. haidi: james mcintyre, great to have you as always p.a.d. can get more on your bloomberg for more on this tliv . we will have that commentary and analysis from expert editors. lots more ahead. this is bloomberg. ♪

kathleen: -- haidi: take a look at how futures are opening up after we saw a big trading day on monday. we saw large caps posting their best month since 2020. a big week when it comes to both earnings and central-bank decisions with the boe. we are watching of course in terms of how cable continues to

trade, 75 basis points is very much on the table. u.s. stoxx 50's future of ia .25%. futures underperforming a little bit, up by .1% but we did see the monday gains seeing the stoxx 50 and being up the month almost 10%, the best month since november 2020. kathleen. kathleen: let's get a quick check of the business flash headlines. aia group has reported a 1% increase thanks to growth in china and hong kong. the hong kong-based insurer says it has measured future profitability of new policies and rose to $741 million from 705 million the year before. they cited a rebound in activity in shanghai and sales to mainland chinese visitors. bloomberg learned that two senior executives are stepping down.

leaving her position. chief information officer is retiring after three decades. the departures mean apple has lost at least three presidents in recent weeks. they consolidated control of twitter. that is possible because musk has completed his $44 billion purchase last week and immediately started molding the company to his liking. plenty more to calm on daybreak asia -- come on "daybreak asia." this is bloomberg. ♪

>> this is "daybreak asia." i'm vonnie quinn with the first word headlines. the lender is not open to take over discussions after unveiling

a long way plan. the 160 six-year-old institution left vulnerable to rumors of takeover bids. lehmans told us exclusively that the $4 billion capital increase will make the lender rocksolid. >> i think we came along way as a group. we really came along way. we have taken the right decision. we are really looking to some of the fundamental issues that we have. you go back to the origins of the company so we really remind ourselves of our key strengths so that is what we are going to execute so i am all excited. vonnie: the opec-plus secretary-general said a supply glut was the key reason. they told reporters that opec sees a surplus into at least 2023. biden warning of consequences for the saudi's. he says it is possible the

global economy is already shrinking. >> we need them to work together to ensure long-term investment friendly climate with sufficient finance available as well. one that is sustainable and works for producers and consumers and develops and also for developing countries. opec is fully committed to helping ensure that the oil industry has a sustainable and stable environment that enables investments to be made. vonnie: the intruder who allegedly attacked nancy pelosi's husband with a hammer has been charged with assault and attempted kidnapping. the 42-year-old faces two counts which carry maximum sentences of 20 years and 30 years in prison. federal prosecutors allege nancy pelosi was the target and he broke into her home armed with zip ties, tape, rope, and at least one hammer. hong kong's economy reported its worst quarter in more than two years as weak demand and

pandemic isolation batter the financial hub. gdp plunged from a year earlier, well below economist forecasts for a .8% decline. the city is set to end the year in contracting for the third time since 2019. september retail sales numbers are out later tuesday. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi. haidi: we do have asian pmi's crossing the bloomberg now. take a look at how we are faring at the moment given all of the uncertainties broadly facing the region particular to when it comes to headwinds coming from fed tightening and the stronger dollar. thailand, we are seeing a real pullback when it comes to the manufacturing pmi's for thailand. we did really see -- potentially, we saw some moves from the tie central-bank when it comes to the macro side for property but we are starting to see that impact of potentially that slowdown.

51.6, slowing from 50 of 5.7. that picture of slowing down continues for taiwan as well. a little bit of softening when it comes to malaysia. don't under the 50 level, very much so separates growth from contraction. in vietnam, staying above the 50 level but only just. 50.6, slowing from 52 and more broadly around southeast asia, weakness coming through for indonesia as well. japan and south korea are quite is -- quite interesting. for south korea, just sort of another indicator to feed into what the bank of korea is grappling with. we are seeing that weakening now to 48.2. kathleen: it is interesting. i mentioned we broke the numbers for the latest exports. the 20 day exports for korea, we already knew that they were negative for the first time in 23 months. korea is a big escorting nation.

with china slowing down, seeing that show up in their pmi, seeing it showing up in their latest export numbers, it's a tough time for them. the currency does not help with anything. if the fed keeps hiking rates so much, what are we going to do about that? they cannot hike rates forever. and about can sort this all out for us. annabelle: it's interesting what you were saying about korea given the pmi numbers. chairs play into this. they make up 20% of outbound shipments. this has been a center very much under pressure. we had new data out for september showing the first contraction in chip sales globally since 2020 but still, there could be some green shoots. i don't want to be all doom and gloom after those numbers coming out so janus henderson actually says korean chip stocks could be

one of the first to recover around large-cap tech stocks in asia and the reason for that is some of the chipmakers like samsung, sk hynix, they have been more realistic about their capex plans and the demand outlook so you can take a look at what we have seen in the index in korea. that actually rose 13% in october. you compare that to the gains for the philadelphia stock index around 6% higher during that same timeframe so something to be watching. the outlook is very much the pendant as well on what happens in china given that there is still uncertainty around the u.s. plans to restrict china's access to high-tech chip information or technology but still, the other one that does weigh into this is the covid picture in china as well given that we are seeing covid cases at their highest since early august and you can see here the number of regions deemed to be high-risk for covid has also been growing over this time frame since the start of the

party congress, something to be watching. overall, the picture for stocks, half an hour into the session for japan and korea and so far, the set up looking moderately positive but still quite range bound given we are awaiting not only for the decision from the rba but also the fed coming up later so volumes looking a little bit sin as well. haidi. haidi: volumes quite thin in australia due to the melbourne cup. quite a bit of distraction happening for the australian market. the credit suisse chairman says he is convinced the newly unveiled restructuring plan will allow it to come out stronger. he told us exclusively that the swiss lender will thrive again and is not for sale. >> this is a fantastic franchise. 166 years. fantastic businesses. we have asset management. this is the core of the group and we are going to, you know,

to strive again so we don't have any takeover discussions at that point. we truly believe we want to stay independent. >> wealth management has always been your historic strength. it seems to be now some investors that are still quite nervous about the stability of the bank. many are holding off from bringing in new money, business with credit suisse come until you have your house in order. what happens if those quiets -- clients don't come back meaningfully before turning tony five? --2025? axel: there were a lot of rumors. i think that was unfounded. you look to our liquidity ratios, balance sheet strengths, and even more so, and you clearly saw your reaction which was one of the key objectives of the announcement was, you know, 81 spreads came significantly down so that's a very strong signal of comfort. yvonne: there was a significant

amount of outflows in the first two weeks of october. the firm said that things have stabilized the not quite reversed. are you expecting those outflows to reverse? axel: they will reverse and the beckoning of october with the social media storm we had outflows that clearly stabilized. we even see some inflows coming and i would anticipate that we will have further inflows in the weeks and the months to come. axel: what are the risk -- yvonne: what are the risks of those outflows accelerating? axel: i cannot see that that point of time so that stabilized completely. we are not in a blackout period anymore so we might access the overall market. we have a lot of clients that told us they will come back. yvonne: seems like you are exiting out of businesses where profits were coming from. what is the logic in cutting, cutting, cutting, when the other side of the equation is the ability that you cannot generate those profits anymore? axel: going forward, credit

suisse is centered around entrepreneurs, wealth clients, and we don't need that type of businesses that are quite isolated from the rest of the group so as you know, we are in exclusive discussions so i'm highly confident that over the next week, we will come to an agreement. yvonne: what about for the asset management side? axel: these were all rumors. we are the asset managers. we need to have -- we don't need to be the biggest globally but we need to have those capabilities that we need also from a product and product provider perspective for our clients and institutional clients. axel: restructuring is--- yvonne: restructuring is being funded by the saudi's. there are questions being raised around the swiss government

allowing this sort of stake even the saudi's human rights record. how do you address the geopolitical conflicts? axel: first of all, we are very happy that we have an investor like the saudi national bank. it is a private institution and i think that this is also a reason that -- we are very happy that we could really secure that type of investment into what they believe is a great franchise, credit suisse. kathleen: the credit suisse chairman speaking exclusively to yvonne man. there is plenty more ahead on "daybreak asia." this is bloomberg. ♪

kathleen: the world's largest companies are declaring breakneck progress over the fight against climate change but such efforts are hardly materializing in reality. let's get more now from bloomberg green senior reporter ben elgin. congratulations on the story. these big takes take a long time to put together. hundreds of companies, using dubious accounting, trace millions of tons of greenhouse gas emissions from their

ledgers. if only that it was that easy -- if only it was that easy. ben: it's a very common accounting tactic that companies use in environmental reporting. they are claiming credit for green energy that they are not actually using and they are saying this energy is powering our data centers, factories, office buildings, and it allows them to report a much lower carbon footprint. in reality, these offices and factories and whatnot are still using energy from the grid which has a lot of fossil fuels, so it's one of these environmental games that is showing up on the reports that companies are making, thousands of companies are making to the public, but are not actually materializing by and large in the atmosphere, unfortunately. haidi: how do they get away with it? does that mean they are breaking rules or is it allowable under current standards? should those standards be reformed? ben: that is a good question.

the most widely used carbon accounting standard out there is called the greenhouse gas accounting protocol and i don't want to get into the weeds but is run by this very well esteemed environmental nonprofit called the world resources institute. they basically decided about seven years ago that this sort of accounting would be allowable. the thought -- the thought process was well-intentioned. if companies are going to pay for these green credits, even if they are not using green energy, that extra money will flow to renewable developers, speed the transition from natural gas and coal-based power plants to wind farms and solar farms. that was the idea going into about what really happened is these credits are very small and they do not factor into the decisions of renewable developers to build new power plants so basically what it has amounted to is companies claiming credits that are not actually influencing the grid so what is happening right now is the world resources institute and others running this

accounting protocol. they are taking another look at this. you need to probably think about this and look at the impact this is having and possibly change the standard but it takes years for this to happen. this has been going on for seven years already. the earliest this change could happen would be two years to three more years down the road so we could be seeing this for quite some time. kathleen: there's one company in your story, transformed their environmental image using this approach. is that expensive? is there a way to do it cleverly so it does not cost so much? ben: it's really inexpensive. if companies are buying cheap renewable energy credits which allow them to make these claims, one example, we get into it in the story, is cisco systems. what they did is they spent $600,000 in 2022 by a lot of renewable energy credits in the u.s. this was their primary vehicle to hit this very ambitious climate target.

we are going to cut our emissions by 60% by 2022. if they were doing that, that would be fabulous. they claimed they did. he's renewable energy credits which allowed them to get their cost about $.60 apiece and spent $600,000, which is about one 18 thousands of their profits that year so this is the profits they made in -- minutes. they were able to turn themselves into this climate leader instead of reporting what was actually a 22% increase in greenhouse gas emissions so completely he transforms it for very the money spent. haidi: i have to say i'm walking away from this with a high level of cynicism. i love this quote from someone you spoke to saying, did you have your sins forgiven for a large donation? ben: there are some companies that are doing better.

it is tantalizing for companies. they can make these dramatic claims. not everybody is doing it. google is one example. they are a company that has largely foregone these cheap instruments and they have invested in these long-term power purchase agreements. companies can enter into these as well. these have much more impact, 15 year transactions were companies end up shouldering a large portion of the power plants risk even though they don't actually use those green electrons either. they are influencing the power grid. some companies are entering into this in a thoughtful way and changing the grid for the better. by and large, we are seeing a lot of companies still utilizing these cheaper credits that don't have the same impact unfortunately. haidi: great to have you with us talking through all of that bloomberg -- all of that. bloomberg green senior reporter, then elgin. just stop oil targeted the bank

of england. in the home office as well as a headquarters in london in protest against new oil and gas licenses in the u.k. lizzy burden reports from outside the boe. lizzy: the writing is on the wall for the bank of england. just stop oil has spray-painted the front door with orange paint and the argument is that the biggest 60 banks are responsible for funding the fossil fuel industry to the tune of $3.8 trillion since 2016 and they say the bank of england has not done enough to regulate it. the writing as i say is on the wall. no new oil and gas. perhaps a reference to this trust the former prime minister. she reintroduced fracking is one of the first acts as new prime minister. rishi sunak has been stacked in -- reinstated the ban on fracking. the question is whether he will

attend the cop conference in egypt. he says the domestic issues are more pressing but with boris johnson attending and with this protest today, perhaps he will change his mind. now, these tactics are putting some even within the green movement off it. some say that they are too controversial but the protesters themselves say if you are that bothered about beautiful buildings, beautiful paintings, you should be bothered about the destruction of our planet. lizzy burden, bloomberg news, outside the bank of england. kathleen: make sure to tune into bloomberg radio to hear more from the day's big newsmakers and get in-depth analysis from the daybreak team. broadcasting live from our studio in hong kong. as you can see right there on your screen. listen via the app, radio plus, or bloombergradio.com. plenty more ahead. stay with us. ♪

>> thank liquidity i don't think is an issue. we have had liquidity regimes that are much more robust than they were in the financial crisis. i think part of what people are worried about and what they saw in the gilt market was the liquidity in underlying trading. haidi: you can catch more of that exclusive conversation with the ceo of barclays that airs on friday and 9:30 p.m. in new york

, saturday at 9:30 a.m. in hong kong. do not miss him in his first tv interview since becoming ceo. kathleen: chinese shares extended losses following last week's selloff as a ramp-up of covid restrictions and poor economic data worse into the outlook for the market. let's bring in bloomberg's asia stocks managing editor. these sporadic covid lockdowns are continuing in china. investors are counting on a reopening of china's economy to give a boost to the global earnings next year. how's that going to add up if they don't stop the lockdown? how will they get improvement? lianting: i think investors are looking ahead. they believe that lockdowns will not be there forever and china will have to open its borders sooner or later so growing number of investors are expecting the second half of next year to be the period where they are going to see some kind of relaxation in border reopening's or economic reopening's and that would mean

a huge boost for earnings of global companies, not just companies. for winners in the u.s., looking at big tech resources and consumer sectors. in europe, we are looking at luxury semiconductor and commodities sectors. tourism related sectors will also be a big winner just because chinese tourists accounted for about 20% of international terrorism spent in the year before the pandemic. haidi: we are seeing china's property crushed sending -- why are we seeing this and is it troubling when they founders themselves start to jump ship? we have seen that already across the tech sector. lianting: yes indeed, haidi. the chairwoman actually cited health reasons but if you ask economists, they are actually saying reasons could include entrepreneurs worrying about xi jinping strive to crack on

wealth accumulation, and that is probably why some of the tech founders left the scene and now, we are seeing developers also having the same trend. that doesn't usually mean wealth or their shares. for example, a company which saw its chairman stepping down in september, shares went down to a record low in the subsequent one month. and for longfor shares were down after the resignation. i think investors are basically built worried about the succession plan or lack interest of the successors ability to manage this property crisis. and also lack of trust in their ability to carry out the kind of development plan that those developers or founders had put in place. haidi: bloomberg's asia stocks managing editor lianting tu with the latest twists and turns and turns in china's property sector.

the stocks we will be watching in hong kong and china imminently and chinese tech stocks will be in focus. adrs fell on weak eco-data and the covid will is affecting iphone manufacturers that could impact deliveries for iphone sales. keeping an eye on those casino stocks as well, mikal beginning conducting covid tests for the masses until midnight tonight. we are also watching of course on the back of what we just spoke about property related stocks after sales at china's 100 largest developers fell 20% in october and watching for that investor reaction to billionaire founders quitting as well. hong kong fintech week coverage continues as well. more to come. this is bloomberg. ♪

> good morning. it is not :00 a.m. in hong kong

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