reporter: i come back to the talent pool we are working on un-part of the emphasis with this summit as well as fintech is getting the world to rethink about hong kong, do you think the damage might have been done on the reputation? guest: i believe that's an over exaggeration. i do not believe hong kong has been damaged. there has been ripples, and those ripples are in the u.k., u.s.. everywhere. hong kong has gone through many challenges and came out the right way. i remain positive. reporter: thank you so much. back to you. rishaad: thank you. this is bloomberg markets.

it's, 11:00 right here in hong kong and singapore. >> there are of stories. stocks advance. clues on the base of further rate rises. we will break the call in 30 minutes. credit suisse struggles to convince investors radical restructuring can revive the bank. an excessive interview with the chairman. >> we are going to thrive again. we don't have any takeover discussions. we want to stay independent. >> we hear from the oil minister who is warning higher crude prices will make a potential recession deeper and longer. taking a look at markets, there i say it.

the hsi is up more than 3%. tech is going gangbusters, as high as 6%. bear in mind, there has been a massive selloff and perhaps it is time to pick a bottom, by the debt. that's what we're seeing at the moment. the csi 300 index is up 1.8%, the thing about chinese stocks, they are at levels not seen since 1997. front and center, the fed decision, will they be -- not as important as the production. what will it do? in the fx market, the strong dollar taking a breather, the aussie dollar is up 7/10 of 1% as we head to the rate decision. 25 christ in. some say 50 is still possible. rishaad: we're looking at that.

the open in thailand. it's up by nearly half of 1%. the dollar is down by one third of 1%. that means it's heading for its first gain in four sessions. surplus, stock inflows are getting momentum. the nifty is poised for a healthy start. the rupee is posting its longest monthly losing streak since 1991. 10th street monthly decline. the long-distance that year off the back of broad dollar strength. let's get to australia as we run up towards that decision. kathleen hays is with us. 25 is the majority.

could we get nothing? reporter: i would be surprised if he got nothing. inflation is 7.3% year-over-year, unemployment is at record low. phil lowe and his colleagues have made it very clear they intend to keep hiking rates. markets are expecting the rate to be about 3.5% or 4%. they have a ways to go. the last meeting, they downshifted 25 basis point hikes, now they are expecting to do 25 basis points to stay on this path of steadily, not as rapidly as the federal reserve. the rba does not have the same inflation problem that the federal reserve does. staying on this path. there are a couple of people, bill evans says they are going to do 50 this time because they should have done it last time and now they can prove the inflation credibility, again

with the market thanks it will get up to on the terminal rate for the key rate, it seems to me they have the door open, if they open the door to 50, no one will be shocked and then, the guidance after the meeting that comes out in the policy statement and a couple of days from now when they have the financial stability report, whatever phil lowe says about the road ahead, the other thing is looking at housing prices. how sensitive are they? the mortgage rates are up. they are fully month after month. is that something that might slow them down? that's the key question. we will not find that out in the next hour. haslinda: the fed 75, which means yields will still hold lower than the u.s.. reporter: good point.

presumably because they have not gotten out of the range, they are not worried about that. in regards to the reserve, everyone is getting ready for a hike. the more central banks hike, the fed, people are waiting to see when they get to the point when they have done enough, ready to slow down and ease the pace. we don't know that about the fed. that's one of the things will be listening for. we know wall street thinks the end of tightening is -- look at the yield curve inverting. that's the magic signaled to get a recession. that brings it into the slow down, maybe pausing at the beginning of the year. j.p. morgan made a lot of waves after mike wilson made his call, he came out with the same kind of thing, not exactly the same,

he figures inflation is going to peek and start coming down more in the first part of the year. that is what is going to open the fed to start slowing down. stopping the rate hikes, smaller rate hikes and getting to the point where the rate hike forecasts are not set in stone. one more thing, i'm still waiting for the governor speaking to parliament. haslinda: pn is under pressure. let's dig deeper, get the market perspective.

so much hinges on the messaging from the fed. the physic the market is pricing into much optimism. guest: thank you for having me. the set up was housing data, consumer sentiment. there might be room for slowing. you have the rest of the central banks going at a slower pace, we of the pressure is outside the u.s.. the market is reacting. what we have is we are still thinking about 75 basis points, but the market will have to take solace in what data is going to come. the fed wants us to look at the data and market will take the fed and watch the data. reporter: the fed has made a

clear, it will get rates to restrictive levels and stay there. it's not about getting restrictive and easing. guest: we have disagreed in terms of cuts. how we are thinking about this is levels are restrictive, if we see the fed forecast, nominal growth is there. if they think about 5%, not in itself that is somewhere. rishaad: with regards to the employment situation. i could unleash pandora's box. we see something like wage growth, the unemployment rate is drifting higher. guest: absolutely. thinking about payrolls or the

market is thinking about when do we revert to the pre-covid, pre-pandemic levels for the nfp, given we are seeing a rise in the payroll numbers. anywhere between this number was where it was, the market wants to see a trend basis going to that. if numbers are going way higher than what the market expects, we will go back to where the market prices and more rate hikes. rishaad: this might be throwing up all sorts of opportunities with regards to what you are looking at, you for that good to, attractive, what happens if the price goes further down? surely, investment grade is one thing but there must be some amazing opportunities as they slipped down the rungs of the ladder? guest: everything about duration will be on two counts.

this is a sign that active duration has to be managed. it's not cast in stone where the hiking cycle is going to go. the market is looking for a terminal rate, but the fed itself does not know where it's going to be which is why active duration management is going to be important, rates, think about this. if you have 4.5% in two years, high-quality credit, 150 basis points, with that role down, you have to have rates going up. haslinda: you have to talk about china. property sector getting smacked front and center. with the outlook. what does it take for the government to reverse course? guest: guest: guest: guest: guest: guest: what we are seeing guest: is not going to be the one that's going to drive the

macro picture for china. china remains steady but the mix of how they achieve that growth is going to be different. the parity on where they want the government whether they feel they are able and number three, whether the external environment is about with the u.s. and europe, that's going to be very difficult for china to get a boost. haslinda: all of the data out of china, not helping. manufacturing coming in better than expected but in contraction. thank you so much for that. let's get the first word news with vonnie quinn. >> thank you and good morning. the opec-plus secretary-general

says a supply glut was behind the reason to cut production. he told reporters that opec sees a surplus into 2023. the cut has angered the u.s. with writing warning of consequences. he says it is possible the global economy is already shrinking. >> we need industry stakeholders to work together to ensure a from the climate with sufficient finance available. one that is sustainable and works for producers and consumers and for developing countries. opec is fully committed to helping ensure there is a stable environment that enables investments to be made. >> president biden says he will seek to impose higher taxes on oil companies. gasoline prices remain high a week ahead of the midterm elections.

in a speech, biden called on oil to put consumers before profits, a promise that could be difficult to deliver with democrats fighting to impose the tax for over a decade. >> at a time of war, any company receiving has a responsibility to act beyond the narrow self interests. i think they have a responsibility to act. invest in america by increasing production refining capacity. >> inflation in the eurozone surged to an all-time high with consumer prices jumping 10.7% from a year ago. i was higher than the median estimate and reinforces fears of looming recession. gdp climbed 2/10 of 1% in the third quarter, that beat estimates but the expansion is widely expected to shift into reverse. hong kong's economy has reported its worst quarter in more than two years as demand and

isolation battered the hub. gdp plunged 4.5% from one year earlier. that was well below forecasts. the city is set to end the year in contraction. retail sales numbers are operator tuesday. those were your first word headlines. haslinda: rishaad: still to come, india's oil minister telling us why higher oil prices could backfire on producers, that interview coming from the international petroleum conference taking place in abu dhabi. haslinda: credit suisse chairman shares how the bank plans to execute the plan, the plan, these this interview, coming up, next. this is. ♪

>> matchup with deteriorating revenue in the company is refusing to do that. the last part is spite selling. investors are saying it wasn't revenue results, people, the clinging to the investor horizon , the market say that's too much. we're out of here. >> there were companies that have strong quarters, apple, pinterest.

of course, alphabet. microsoft, amazon having what is the common thread? >> pinterest revenue deteriorated expectations have been set low enough that results came in better-than-expected. they did with meda too, and revenue came in a smidgen better-than-expected. it was not a revenue problem. they do not want them investigating the metaverse with their return on investment dollar. what is happening is to softening across the board. the two most interesting parts to me were google, the first quarter that google said there was weakness in the search. they said that in september. search is usually considered to be the most not recession proof, but recession resilience. if google is seeing a down in search, every other company is seeing it.

amazon in the june quarter is asked whether they have seen any signs of consumer softness. the cfo said no. they are starting to see softness. not surprisingly, they are bleeding over to the u.s.. how much worse could it get? we know it is getting softer, will it get softer and for how long? that is a hard one to know. i think all of these companies especially if they have exposure to the consumer, microsoft and amazon with aws are seeing the enterprise is starting to slow down. demand trends are softening. any company who tells you that is not the case is probably is not being honest. emily: interesting point about pinterest. the new ceo is going to be on the show in a few minutes.

i will put your point to him. i want to ask about the partner advertising landscape and what your outlook is. you also cover netflix it would reverse a decline in subscribers for the first time in a while. you have the streamers going after a piece of the advertising pie in addition to the social media companies going after the advertising pie. how is this all going to play out? >> i think pinterest is well set up here. you have a turnaround story, an executive with a good execution track record, the asset may not have been run that will in the past. netflix stock has been a monstrous talk to the upside, finally over the last couple of months. a new revenue stream that they will go from zero to 100. the question is how quickly. there is enormous demand from advertisers for access to netflix's base. people who use the site. you have reached, frequency. almost a primetime audience. amazon prime, the average household upper to middle income globally for netflix, there is a lot that brent can tap into for the first time, you can own netflix inventory. there is something new.

if you do not have something brand-new, they get weaker in the back half of the year going into next year. it is the advantage that netflix has. so is meta. i thought there was show more discipline than they have let on. emily: you have been covering technology for two decades. do you think we are seeing a real inflection point here? is there further to fall? how long does it take before this turns around? mark: two thoughts. we have a negative inflection here. tech is bigger than it was during the last cycle of 2008 and 2009 with the great financial crisis. those were the same thing. it is much bigger. it is more cyclical than it was back then.

our firm, we are the overall advertising, it will decline into the single digits. the digital advertising will be flat up 5%. another inflection point i am interested in will have to come back to, that is ai. what meta and alphabet are doing, they are spending on artificial intelligence and machine learning. bill ready has been very thoughtful on this topic. i am fascinated with what will come out of this. the market is looking at the ai investment and the capital expenditures. google and meta probably know what they are doing and we will see a return. i do not think that is priced in. the good provide incredible long-term buying opportunities. the stocks go down because of my car out of a recession before they start moving up because of artificial intelligence -- because of the recession before they start moving up because of artificial intelligence. emily: we appreciate your perspective and your historical perspective given how many years you have been doing this. much more ahead, stay with us. this is bloomberg. ♪ emily: welcome back to

bloomberg technology. let us get back to the markets and social media stocks on the move. ed ludlow is back. ed: it was a pocket of weakness

when it came to social media shares. meta closed the lowest level since 2015. down to 7000 incidences of people saying that if graham had crashed and it was down. it would suspect that they pressure on the stock comes from the disappointing numbers. pinterest had its best day in more than two months last friday after a strong earnings. it has a street like what they saw, getting up some of those gains in the monday session. pinterest really interesting. look at the stock year to date relative to meta and snap. actually, relative to its peers, pinterest has held up really well. i'm interested in what the story is here and what investors see in pinterest relative to meta. that said, it is still down pretty significantly year to date.

i'm hoping you can ask which direction the stock goes from here. emily: i will indeed. thank you. pinterest has been outpacing his peers, posting third quarter results and an uptick in monthly users after three quarters of decline. a decrease in digital ad spend while marketers worry about economic uncertainty joining meat now for more is bill ready, the pinterest ceo. how is it that pinterest bucked the media spiral that we saw with snapchat and others? >> thank you for having me. i feel really great about how our team performed in q3. we are doing some things that are different from the rest of social media. i think your starting to see that go through advertisers. we are outpacing and accelerating market and growing faster than our peers.

we are taking share. part of that is that we are a positive platform. we do not have politics or present their perfect life. it is a pleasure people go to find inspiration. people go with an intent and purpose. that is a unique thing in the space both are what the users get as well as what advertisers get. it is a full final add solution. advertisers can be in the funnel and meet users at multiple points along their journey. the brand nature of the platform, the user growth returning, these are all starting to cut through. you see it demonstrated in our results. emily: let us talk about what advertisers get. we are seeing a broader add pullback. how much of that pinterest game do you gain?

do you gain an market share or not as we head into a pronounced long-term economic downturn? bill: it is clear when you look at our performance, we have been gaining share. we are a smaller player so i think there is more opportunity for us to pick up share. we ran a decelerating ad market. the market looks to still be choppy. we are making sure that we show up with great value for our advertisers. we are doing that around helping the advertisers meet the users through the full final. i think that is quite unique. when you compare us to other social media platforms, they have a lien by entertainment mode. the user is there for some other purpose. watch a funny dance video or a few pictures of their friends. people come on pinterest looking for products, more than half are there to shop. they are there.

get users at the upper mid and lower state of their journeys means we are able to help the advertiser connect across those and help people understand what they want but have not decided to buy. every cmo has been approached by their cfo about driving performance. sometimes our results are a sophie's choice. they often rush to the last click. they would not tell their brands to worry. what pinterest is delivering we are finding really resonate with advertisers is the ability to tell their brand story in a way because we do have the lower funnel aspect of that as well. we can connect across the user journey. emily: obviously, investors are excited about the ignition of growth here. we had mark mahaney who covers

pinterest earlier in the show, he said expectations for pinterest were low. he is optimistic about you coming in and bringing a new perspective on how to manage this company. what are you doing to attract gen z and how? what is the evidence that is working? >> we returned the user growth, we returned to user growth, they are doing that by leaning into the uniqueness of the platform. you think about it as a positive place where people go with intent and purpose, it is unique. it is also quite unique it is a place people go to express their creativity. we are leveraging those things and leaning into them more and drawing a contrast across social media and it really leverages the unique human duration that happens on our platform to drive better and more personalized experiences for our users. to give you a tangible example, you can a lot of places to find every address.

-- a great new dress. when you think about how to put together a great outfit and what handbag and shoes and accessories may go well with that dress, we are doing a lot of machine learning as many others are. that is only as good as the signal is acting upon. if hundreds of millions of people who come to our platform -- we have hundreds of millions of people who come to our platform to tell accessories may go well with address. -- that dress. it is written machine learning acting upon signals from hundreds of millions of people who are telling it what goes altogether. thinking about how to put together a great holiday plan for what a great meal may be. it is completely unique across the space. you do not see it anywhere else. pair that with machine learning and advertising abilities eight is counting that shape is cutting through to use it -- pair that with machine learning and advertising abilities it is cutting through.

emily: think about what is happening at twitter, it is unclear what the business model will be and whether advertisers will stick around. his twitter an-- is twitter under elon musk an opportunity to take some of that mind share? is it a different proposition? bill: i cannot comment on a specific player, but when you compare pinterest more broadly, i would say we are at a unique intersection between social search and commerce. it is different than other platforms. when you add onto that, it has a positive nature of our platform we hear from users that it is the place that they feel uplifted and inspired whereas other platforms are seen people shout their politics or --

seeing people shut about their politics or it can leave them feeling anxious or depressed. they feel lifted up on our platform. we are leaning into that. it is a brand safe space for advertisers. that is something that advertisers have understood about pinterest. we are seeing it cut through more social media. emily: how has your google commerce background come into play? have you had any lightbulb moments on how to make that connection from something you see in pinterest to something that you buy much more concrete? bill: while pinterest is a full funnel platform, historically it has been a stronger funnel. people found things interesting on pinterest, then they had to go somewhere else to act upon that. part of what we are doing is making sure that as people find things on pinterest that we are leaning into that intent to making things much more actionable.

we want to make it so that every image of every product you encounter on pinterest becomes shopable. i want that same look, we are making them more shoppabe. we think there is a lot more opportunity to go there. it is been a place where the platform was not as strong and we are making a much stronger over time. there is good progress over time. good progress there, a lot more to do there and as we do it, that will be better engagement for users and also really great advertising opportunities for our partners. emily: your collage app has seen good traction. especially in the united states, helping with engagement and active users. what is the longer-term vision there?

how can you integrate what you are learning from shuffles into the broader experience? bill: we have been quite excited about the progress with shuffles, are collage making app that has really resonated with gen z. it is indicative of how there are a number of adjacent use cases we can explore what pinterest. wailing into the unique nature of our platform we have people who lean forward, looking to express their creativity. shuffles is one example of that. it is one example of how we are cutting through with gen z. our user base has more than doubled since q3 of 2019. for this quarter it was our fastest growing demographic. pinterest has been cutting through gen z users. a lot of the reasons are it is a

positive place. it is an oasis in a place of social media. they can collaborate with friends versus having to worry about being shouted down. it is felt as a safer and more inspiring space by many users. that is resonating with gen z and as we give them more pools like shuffles, we think there is a lot more we can do to serve that as a great and up-and-coming demographic. emily: what has been your inspiration? what have all of these learnings and things you have seen led to? product ideas and other innovations you may be thinking about? bill: i would say i am inspired by the team that is here and the way that they have executed. there is a lot more for us to do but we have a team that loves pinterest. they are really intent on doing something very different from

the rest of social media and something that ben and i talked about a lot before i joined, something he believed deeply. upon coming into the company it has been hugely inspirational to me to see how much our team really cares about building pinterest as a positive place that is different from what you see in the rest of social media. there is a ton more to do. that is why i joined. we will make sure to build more into action and more of all of these things. building a positive place online that gives users a real alternative to the vitriol of the norm of social media. i think that is massively inspiring and our team does as well. emily: all right, the pinterest ceo. thank you for joining us. we appreciate the extended conversation. a new team is taking a crack at investigating whether and

whether the stablecoin executives committed a crime. that is next. this is bloomberg. ♪ emily: a justice department

probe into the stablecoin tether is getting a fresh pair of eyes after a conclusion. matt, it is unusual to redirect

an investigation like this? what is the dot looking into? >> the justice department has been looking into tether about a variety of statements, for instance how much money they have to back the stablecoin and what they told banks when they were transacting. this investigation started with this has moved to prosecutors in manhattan. they are looking for any bank fraud violations, given the size of the tether, it is the third largest cryptocurrency behind bitcoin and ethereum. they want to make sure that those -- what they have told the banks and that is accurate. emily: remind us what is tether? the third largest cryptocurrency, the creators have said it is backed by the u.s. dollar. what does it mean to the crypto ecosystem?

>> is an important and unusual part of the ecosystem. it is designed as a stablecoin. it is a stand-in for dollars. this was in a time of the industry where there was not a lot that was stable. they wanted to keep your cash or dollars in something that was not going to move dramatically. it became a crucial part of the market. often folks are going to be trading bitcoin with tether or ethereum and tether. it has grown to almost $70 ;;;;billion, a massive fund. the company has come into some other regulatory probes from other agencies. the cftc over the amount of money and cash backing their stablecoin. it is an enormously important part of the market in how it

functions with traders being able to use it to make a spec bets on other cryptocurrencies. emily: what actually happened here? what is the likelihood the criminal charges happened? >> that is up for the doj to decide. they're looking for declination letters. the justice department is saying we have looked at this and we have declined to pursue any charges. that remains to be seen. emily: all right, thank you so much for that. we will follow your reporting to stay up-to-date on this investigation. a surge of covid cases leads to a worker exodus at the world's largest iphone factory. how apple's main production partner is working around the spread. that is next. this is bloomberg. ♪ emily: workers at a production

plant in central china, the largest iphone factory in the world are walking off of the job. hitching rides dipping into , their savings to escape another covid lockdown. to be will has all of the details. in your story, you profile and woman who is literally walking 25 miles and quit the job to get out of there? tell us about what is happening. >> what is happening is a covid

spread through the site in central china, 200,000 people site, and makes the most iphones. after that, we have seen trash piling up in dormitories near the campus and also people who are getting into a quarantine sometimes and marketing meals, hot meals in time. sometimes they are just only getting. bread for meals because of all of these issues, some workers have decided that they want to quit and go home. that is because of a lack of transportation and also strict covid controls that are in place in places. workers have to walk back to where they come from. in this way that we reported, this has to be a nine hour walk to get home.

emily: the rigid and brutal hours at a plant has been well-documented. what is foxconn doing to get around this? is it impacting supply at all? could this slowdown production? >> what is happening is they are raising wages by almost a third and they are also trying to get back capacity elsewhere online to make sure that the supply will be minimized. due to weakening demand, apple is canceling orders for new iphones this year. this is an economic headwinds on one hand and also giving the number of workers required, it is not as many. i think it is we need more time to figure out what is the impact of the covid incident in central china.

emily: talk about how this fits into the president xi jinping has been handling covid more recently against the backdrop of what has have been happening with the chinese communist party? >> after the party congress originally, people were expecting that there may be indications that china can come over covid and focus on economic growth. that is not happening. for instance, in hunan, where the foxconn iphone campus is located in the local leaders, they are saying that they need to prioritize zero covid and implement covid company measures. i think it will be a bit difficult and challenging for china to come out of their covid and it is hard to predict when

this may be completely going away. emily: your story is worth a read, reading about that and many more. thank you. i does it for this edition of bloomberg technology, make sure that you tune in. tuesday, our conversation with the uber ceo after the company reports results. we don't want to miss that. check out our podcast. i am emily chang in san francisco, this is bloomberg. ♪ ;

>>