♪

kathleen: you are watching daybreak: asia live from new york, sydney, and hong kong. annabelle: we are counting down to market opens in tokyo and seoul. haidi: the offshore yuan is falling to start another volatile week for markets after beijing vowed to stick unswervingly to covid zero. job losses mount in big tech. deplatforms beginning thousands of layoffs this week. twitter is trying to bring back some markers it fired friday. we check in on japanese tourism reviser -- revival with the iag hotel managing director. annabelle: the opening of the asx 200 at the start of trade. it is giving up a little ground. .4% higher at the start. futures earlier were looking for a gain of 1.3 percent, a lot for investors to get through. u.s. inflation print is coming up. the u.s. jobs report friday did

not change the needle much for investors. they are still pricing in a 50 basis point move in december. signs of weakness in the u.s. economy. we had another indicator the last few minutes from apple. i will let kathleen get through the details in a moment. basically they are guiding for lower shipment of high-end iphones. just signs around general weakness of the u.s. consumer. we are seeing ozzie stocks come online fractionally weaker. what is also interesting is the story of china. there is a little bit of a disconnect between what futures are pricing for the ftse, china futures up 1.3%. we are seeing a big drop this morning in currencies against the dollar after officials said they would stick unswervingly with existing pandemic policies. this has really been a lot of whipsawed trading around this. investors are thinking, where

there is smoke, there is fire. we have signals in the market. is it enough? goldman sachs says yes we have preparations in place, but it takes time. kathleen: unswervingly, that word, that message is very direct from the chinese government. no, we are not ready to end covid zero strategies. not anywhere near. that took the wind out of sales for the rally we saw in u.s. stocks on friday. all of the major indexes were up 1.3% across the board. now you can see not a big loss, but still, almost a percent. it has to be that news. nothing has happened since the jobs report friday. treasuries, we are seeing the rally that took the two-year note from 4.8% to 4.65%, the 10 year we can see the price rising, bringing the tenure down from friday, 4.17%. oil was up about two dollars per

barrel because of the covid zero strategy possibly ending. the idea is, if there is more demand from china because they open up, we do not have to worry as much about a global recession easing demand for oil around the world. now we can see a bit of a pullback. still above $90 a barrel. haidi: let's get back to all that unswervingly sticking with current covid controls from china, dampening hopes of imminent easing. stephen engle is our chief rates correspondent from asia and contributor are field reynolds. stephen, policymakers love these words. it is never imprudent or swervingly. stephen: i find it interesting they had a press conference on a

weekend, extremely where, on a saturday. especially after market moves through the previous week, friday. perhaps that was a sign in itself that the official giving this press conference wanted to tap down expectations -- tamp down expectations that they will step down covid zero control measures. that is why we were on -- are on tenterhooks this morning as asia wakes up and goes back to trading, whether those gains will be given up. basically, they said the series of strategic measures are completely correct. they are using the term unswervingly, sticking to covid zero policies. there will be tweaks nationwide as cases are on the rise. we saw 4200 new cases saturday nationwide. 1300 of them were in guam joe. that was double the previous day, friday. you look at the case numbers.

that is one number for china to stick with it. you also have to read between the lines on what state media is saying on whether there will be relaxin covid zero. right now, there may be more risk in chinese equities. garfield can probably comment on that. kathleen: steve, i want to continue on this. the old saying, where there is smoke there is fire. you cannot help but wonder, maybe there is something brewing. what signs should we look for to indicate that china may indeed step back? stephen: there are a number of different moves we have been reading. about china's potential exit strategy. olaf scholz, the german chancellor said china agreed to allow foreigners in china to take the bion tack them --

biontech mrna vaccines. that could be a precursor to allowing broader access to western mrna vaccines into china. again, the narrative a little bit saying more efforts -- essentially, they are implying that, in their latest column, that long covid is not necessarily as bad as previously thought. i'm paraphrasing again. that is an indication that perhaps through the power of the state media and the narrative to the people that if there is a rise in cases, if the number of cases through the winter does rise, that authorities would allow more cases. they are downplaying the health risk to the population to feel their fears assuaged. it is a micro-reading of the tea

leaves, obviously. haidi: we are seeing the yuan falling, the tip of the iceberg when it comes to volatility for chinese markets. broader global markets, following the fed trade, or strategy, has that gotten messier now? garfield: it has. there is more nuance across bond markets because even as we see that, except for japan, most of the developed world is heading for higher rates. the question is, how high and how fast? the fed is very much one of the leaders when it comes to go high go fast move. it is also seen, following that profile. but the u.k., europe, the rba, even canada, they are looking at a more complicated set up where

they are willing to bring the growth question in. we are at the verge. partially caused by would central banks are doing. the general thesis has been, you want to be willing to risk a severe economic slowdown in order to bring inflation down. we are now in where there are signs in some places that inflation could be cooling. there is the potential for base effects as we go into the new year. with all that, we have central banks starting to become, you know, less of a pack than they were for most of this year. so, that helps explain some of the signs of an ace -- of a nascent, maybe not a rally, but a relief to the endless drop, as u.s. yields continue, mostly, to grind higher in response to the federal chairman towels -- powell's hawkish stance last

week. kathleen: four top fed officials friday and go to him almost to a word. when this fed pack of speakers is out this week, i am sure we will get this reinforced. you got the jobs report. we know what fed officials are saying. they know that more restrictive is needed, but they don't know how restrictive or how high, except, higher than they thought you the inflation report for cpi, is it more important this week? garfield: it is fairly important. to be honest, by now, markets would probably welcome a cpi print that came in more or less in line with consensus. you might not need a downside surprise for markets to get fairly excited. the difficulty is a fed speakers are likely to push back against any rapid easing in financial conditions for the market to carry out, unless there is

something really noticeable, a really shocking downside surprise. otherwise they seem likely to stay the course and continued to push back -- continue to push back against pricing for them to go easier. that sets up a lot of tension. also, there was a surprising rebound friday from the bond market after what was a mostly strong jobs report. there are plenty of signs a lot of that was profit taking. traders and hedge funds put on a lot of short bets on treasuries. they that the levels we got to friday. they went, that looks like a good spot to take profit. chances are, unless there is a radical shift in inflation data, a lot of shorts will get put back on. a lot of momentum will revive for higher u.s. yields. even global outlook. the rest of the world takes a slower pace higher when it comes

to yields. kathleen: bloomberg's chief north asian correspondent stephen engle and contributor garfield reynolds. now, let's get to vonnie quinn with first word headlines. vonnie: kathleen, thank you. facebook's parent meta is planning to begin layoffs that will affect thousands of workers this week. job cuts could be announced as soon as wednesday with employees told to cancel non-essential travel. meta struggles with growing offers while investing in the metaverse. after laying off about 50% of the company friday twitter is asking dozens of workers to come back. some were laid off by mistake. others were let go then realized they were needed to achieve targets set by elon musk. the new york times is holding off on page verification check for users. a fresh round of job cuts at

credit suisse starting next week. the lender will notify affected personnel, mostly support staff in the asia-pacific. egypt has begun a deal to discuss how rich countries can help pay for the damage caused by global warning elsewhere. the breakthrough would allow diplomats to officially debate loss and damage during the two week cop 27 meetings for the first time. industrialized nations repeatedly blocked efforts to add this from -- to the agenda despite demand from developing countries. global news 24 hours a day on --global news 24 hours a day on air and on bloomberg quick take powered by more than 2700 journalists and anaylsts in over 120 countries. . i am vonnie quinn. this is bloomberg. haidi: ahead, we speak to ihg japan hotels and resorts. first, the dollar is climbing against g and peers -- g10 peers

after chinese officials out of to unswervingly stick to covid zero. we get fx markets next. this is bloomberg.

>> today's jobs data is not something the fed wanted to see.

>> it is a strong employment report. >> strong labor market data. >> the headline number stronger-than-expected. >> not responding to fed tightening. >> to bring supply and demand back into balance we have to bring down demand because supply is not caught up. >> the fed is on track to deliver a big hike next month. >> they have more work to do. >> the fed has continue on its path. >> the fed has to be careful about over tightening. >> the terminal rate will be higher than we thought. >> we could see more rate hikes priced in from what is already here. kathleen --haidi: our guests reacting to a strong jobs report and implications for fed policy. let's look at the week ahead. markets the focus -- will be focused on the latest u.s. inflation readings thursday and its implications for fed rate hikes and inflation numbers out of china and taiwan. chinese trade in foreign reserves data comes monday. we will be scrutinizing that as

well. third-quarter gdp is expected to be lackluster out of hong kong. as the city struggles with reopening. we are watching gdp data from indonesia monday. friday, china's single state, the world's biggest shopping event of the year. this year's sales may be muted amid the economy, covid restrictions. alibaba looking to spur more demand. kathleen: the dollar following the most in two years following strong u.s. jobs data last week. with us now is head of fx research at anz. i was scratching my head friday and today trying to think of what to say about the dollar that got weaker when aggressive rate hikes are something you can bet on now. how do you put this together? is it looking down the road and

seeing that the dollar has risen so much, we are getting closer to the peak, or what? mahjabeen: over the next three or four months, the dollar will move higher. they said they would slower the pace for higher upside and that translated to higher yields. of course, not forgetting the jobs number. while it did beat expectations, i must say when we look at three-month averages or six months averages it is still about 300,000 for payrolls. so, this may be points to very gradually slowing labor markets, if at all. kathleen: is the dollar going to keep rising as much as it has.

it is hard to make that blanket statement looking at the index. if you look at the british pound, we can pretty much that it will continue to get weaker against the dollar for its own reasons. mahajabeen: we think the fed will reach the terminal rate by q1 of next year and we expect consolidation in the dollar. there are a couple things we are looking at beyond q1, u.s. real yields that have moved up very quickly from a technical perspective at 1.7%, roughly. a lot of the dollar strength and rate hikes are already priced in. generally, a higher u.s. dollar. we think at some point these will approach stabilizing.

that should then move into consolidation along the dollar. we are not there yet. second, obviously, over the last six weeks or so we have had a reduce in negative growth momentum for other countries. that is a part of u.s. exceptionalism that was a function of weakness in china and europe. over the recent weeks that has been improving. but, not too soon. kathleen: haidi: is there a further downside with the aussie dollar, potentially as we get covid zero staying in place in china? mahjabeen: i think that of course the australian dollar is a function of the way the market works. we see the aussie dollar staying between the 60 and 62 year mark. towards the end of the year, it points to a higher aussie.

going forward, we talk about divergence, or, rate differentials. the two-year aussie, the u.s. yields there. the most negative levels since covid 20, march. in favor of strength for the u.s. versus the aussie dollar. haidi: what about the yuan? there has been a lot of uncertainty when it comes to how much weakness in the currency the pboc will tolerate. do you imagine there would be further downside given the release officially indicated they are not veering away from covid zero anytime soon? mahjabeen: with the extreme moves friday, i think it should stabilize. i think we expect it to

continue. they have come out to say they are not looking to protect, more the pace of the move. so, of course, you cannot fight the fed, you cannot find the dollar. we will look for further weakening. more in an orderly manner. haidi: always great to have you with us. mahjabeen zaman. there is more to come on daybreak: asia. this is bloomberg.

cop 27 in the shadow of global food and energy shortages. akshat: since 1995, the united

nations has organized an annual conference to talk about the climate crisis. delegates and ministers from these countries have butted heads to find ways to cut emissions and adapt to a warming planet. what is it delegates will talk about at the beach resort town this november? it ready for jargon. first, the paris agreement signed in 2015. rich countries promised to pay for losses and damages caused in poorer countries by climate change. however, until now, countries have not discussed to will pay, how much they will pay, and how the money would be transferred. with one third of pakistan underwater only a few months ago, the debate around loss and damage is expected to be hard at cop 27. second, africa. this will be the fifth time a cop meeting has been in africa. it has contributed to climate

change the lease but suffers the worst consequences. needs will be met through elegy grants, partnerships, and bilateral deals. expect lots of grants called a memorandum of understanding. third, is private capital moving as expected? even though cop meetings have traditionally been about government officials meeting counterparts, private companies have been playing a bigger and bigger role because moving the world towards net zero emissions within decades will require as much as $4 trillion of investment every year. the vast majority of that money will come from players. at cop 26 in glasgow last year, the world's biggest financial institutions with more than $150 trillion of assets under management committed to moving there cabinet towards the goal

of reaching net zero emissions by 2050. at cop 27, >> billion u.s. dollars in the year to september. australia's biggest banks are reaping the rewards of higher interest rates. warren buffett's berkshire hathaway reported a 20% surge in operating income for the third quarter to 7.7 $6 billion thanks to utilities and energy businesses. the energy underwriting segment of sort a loss. of sor- [announcer] imagine having fuller, thicker,

more voluminous hair instantly. all it takes is just one session at hairclub. introducing xtrands. xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. they're personalized to match your own natural hair color and texture, so they'll blend right in for a natural, effortless look. call in the next five minutes and when you buy 500 strands,

you get 500 strands free. call right now. (upbeat music) >> with rates now in restrictive territory, i believe it's time to shift focus from how rapidly to raise rates, to how high.

in other words, to determine what is sufficiently restrictive. haidi: that was boston fed president susan collins on entering a new phase that could require smaller rate increases. u.s. labor secretary marty walsh says he would like to see a lower unemployment rate after the october jobs report showed a numbers sticking up despite more jobs being added than economists expected. the biden administration is working on supply chain issues as a key way to reduce inflation pressure. >> people went through a lot of pain in this country in the last 2.5 years with the pandemic. people lost their jobs and were concerned about the future. we are living in an interesting time coming out of the bed to make. people are feeling pain. pain at the kitchen table. we have to do everything we can as administration. the president passed legislation. the inflation reduction act will long-term help.

we are working on supply chain issues to bring down inflationary pressures. the fed is doing what they have to do to bring down pressures. we have to continue to work with in all government approach at the kitchen table. i think that by having unemployment rates around 7%, 8%, there is a necessary thing people in america don't need it now. >> you conceded has to go higher? >> i'm not there yet. i hold out saying i would like to see the unemployment rate continue to stay where it is, go lower, if we can, to work through inflationary pressures. >> how does employment go lower and inflation comes down too? how does that happen? >> i think people are trying to compare this accommodate to what we have had in previous economies. you have heard people talk about recessions, comparing this moment in time to past times where we had recessions. it is very different.

we have never seen inflation at such a high rate and unemployment at such a low rate in the history of our country. we have to do everything we can, use all of the tools, all of the mechanisms we have to bring costs down. some of this is caused because of pandemic, because of supply chain issues at the beginning. part of it is because of gas prices. this is a worldwide crisis people are feeling with inflation. things we do in the u.s., we are more successful here in the u.s. than in other parts of the world. coming up on >> >> you talked about the mechanism. forgive me for calling that word salad, because i felt that way on my side. the mechanism. yes, unemployment is low and inflation is high. that is why most people assume unemployment will have to go up for inflation to come down. you have not told me how you think that will happen. what will make that happen? it's the world you want, but not the world we have. how will it work? >> i am not an economist, number

one. number two, when you think about where we are at this moment in time, what i will do as my job in the secretary of labor is to make sure that americans have opportunities to get good paying jobs, whether through workforce development , working with states and cities all across america. that is my role and responsibility now. by role when it comes to inflation was making sure supply chains were moving, that we did not have 700 ships off the coast of california, seattle, portland, and in the west coast, making sure that those goods and services came into our country, making sure we don't have disruptions in the supply chain whether it is from negotiations with ports or rails, those things that i am focused on now, forward-looking, to make sure we are doing everything we can that we do not add to the inflationary pressures people are feeling in america. kathleen: the department of labor secretary marne -- marty walsh.

we have covid strategy not going away. we have the fed looking more than ever like it is willing to hike rates aggressively. what is filtering through the age of the most? annabelle: probably china at this stage. it is interesting what we heard there from the u.s. labor secretary really pinpointing how much americans are feeling the effect of inflation area that is -- inflation. that is a focus for traders coming into the week in asia given the u.s. inflation brand. we had jobs numbers. they don't seem to be moving the needle too much. the fed expects to hike by 50 basis points in december. as you said, we have moves around china. that also came through this morning in the last half hour or so with that headline from apple. essentially, they are guiding for lower shipments of iphones in the months ahead area this is their latest, 14 iteration. what they are blaming for this are lockdowns in china at some of their biggest factories there. that is a huge headwind.

it shows the impact of stringent covid zero policies. the question for markets this week, the gains we had across the past five sessions for chinese stocks, will they hold? so far, the indication, what is interesting is we are seeing material still leading the index higher in australia. now we look at the biggest names. bhp, fortescue, new crest of more than 4%. that tells us steered -- still that traders are buying into the chinese reopening strategy. we see stocks moving higher, but there is a disconnect in fx. look at the dollar. we are seeing all currencies in the g10 space declining. you can see that picture in the board here. this tells us perhaps traders are still a little sensitive to any headlines around this, particularly, given we had officials in china saying they

would be unswervingly sticking to covid zero policies. haidi: annabelle droulers in hong kong. let's get the vonnie quinn with first word headlines. vonnie: the people's bank of china voiced its report for unspecified violations by one of its governors. his name was no longer on the website list of top executives as of saturday. the ruling communist party is determined to fight corruption and as they say people should learn lessons from the case. president biden's comments on call -- cold anger a key senate allies weeks before the midterms. biden vowed to close coal plants as part of the u.s. energy transition. west virginia senator joe manchin called the remarks divorced from reality. the white house says the comments were twisted to suggest a meaning not intended. former u.s. president donald

trump suggested an announcement is imminent that he plans to make another white house run. he is tentatively planning to confirm his 2024 campaign next week after the u.s. midterm. he used his rally to attack florida governor ron desantis, currently considered his top opponents in the primary field. garfield: --global news 24 hours a day on air and on bloomberg quick take powered by more than 2700 journalists and anaylsts in over 120 countries. . haidi: apple expects lower shipments of its newest iphones after chinese lockdowns affected exports. mark gurman joins us. we were foreshadowing this given the lockdowns we have seen around foxconn in shinto. how will this affect seasonality into christmas? mark: i think this is a massive issue for apple. we have been bracing for an

announcement like this from apple the last week and a half or so as we saw covid lockdowns stronger than they have been in several months in the region area as we know, -- the region. as we know, apple does not diversify output for high-end iphones. the vast majority results in the vast majority of overall revenue for all products. all of the shipment comes from that shot -- site in china through foxconn. if that site goes down apple is not in an ideal position. i checked the retail store online. it looks like shipments coming into the u.s. are arriving between early december and mid december, in some cases the end of november. that has been the case. this three to four week window. if you early a phone in early november it will not arrive until next month. i want to see two weeks or one month, when iphone buying season for the holiday time, black

friday, in the u.s., around thanksgiving, closer to new year's, how that gets impacted. kathleen: you said this is massive for apple. does that mean holiday sales will not be as good, but people will still be eager to get their apples and spread sales into the future, or, is this something more permanent? does it do deeper damage to the company? would it forces them to shift production around somehow? mark: absolutely not permanent. as we saw was covid lockdowns last year and the year before, in february and march of 2020, it's not permanent at all. these will subside at some point. the question is, when? the other question is how it impacts apples q1 earnings. apples have been looking at 128 billion dollars, a 3% to 4% increase annually. apple, guided, not with numbers, but by saying it would be less than 8% growth. they basically implied it would

be around what analysts are expecting. the question now is if that outlook implement at the idea of the lockdowns or not. we will see if apple has any adjustment there given they did not give numbers for their outlook. they just said it would be less than 8% annual growth. they don't have to do this. i think this is apples statement to the market letting them know numbers may not be what is expected, because, we are not able to produce as many as we expected of the product that drives the vast majority of our revenue. haidi: singles' day this week as well. what are you watching out for in handset sales? mark: the next few days or week or so you will not see a major impact because the channel inventory lasts a few weeks. i think they should be ok. the output they had for this single day event would not be different with or without the situation at foxconn. i think a lot of retail stores have some inventory.

it is great inventory. but, i do not think the impact of lockdowns has come to fruition yet in terms of actual channel sales. it has, certainly, for when you order online. but for physical retail stores it has not happened. apple will ultimately be able to accrue sales if they shift this year, into the quarter, even if they ship later than expected for upcoming shopping events. kathleen: the model of the story, get to the store fast. last week twitter fired roughly 50% of its staff. this week according to the wall street journal meta-platforms is planning to fire thousands of workers. bloomberg's su keenan joins us. su; this is a reversal of a trend we saw for years. tech companies spend big and higher big and now the reverse. facebook's parent meta-is reportedly preparing to let go thousands of workers as early as this week.

they cite sources that say this could be announced as soon as wednesday and the company has already told employees to cancel non-essential travel. these layoffs could, as meta-struggles with growing losses while event -- investing in the metaverse business that has not been popular with investors. ceo mark zuckerberg said in the most recent earnings call him meta--- call meta will be smaller in 2023 then this year. shares are down more than 70% this year. haidi: meanwhile, chaos at twitter continues. they may have fired too many workers, maybe fired the wrong ones, maybe fired them too soon. what's going on? su: twitter is now reversing some layoffs and bringing back dozens of workers that were either fired erroneously, according to people close to the matter, or, it did not realize it now needs to execute a lot of

new features that elon musk wants. sources say that must himself -- elon musk himself tweeted friday workforce reduction was unfortunate, but there is no choice when the company is losing $4 million a day. musk tweeted that everybody that exited the company was given severance and the severance given was more than the legal amount. meanwhile, checkmarks, verification, is a big part of the new rollout for an eight dollar per month subscription service. those have been delayed. the second major reversal, measures musk put in place. the checkmark the day after the election. twitter will be clear there is no impact of any kind on the election. it appears to be an exercise of caution. you are looking at pictures of

elon musk. we entered the company the day it finally closed the deal. saying, let that sink in. a slight delay there. again, for the workers erroneously fired, dozens were told they are now being brought back. back to you. haidi: before we had a chance to let things sink in it seems like things are changing again. su keenan there had the latest.

haidi: it's time for japan ahead on daybreak: asia. kyoto news says the prime minister warned japan must be prepared for any action by other nations that proposes a threat to peace and security. it reads -- regional tensions are high with north korean missile tests. tokyo wants to $.4 billion for a research collaboration with washington to develop next-generation semiconductors. companies reporting earnings today are eisai and ntt data.

haidi: japan is betting on a recovery in tourism after opening borders to individual travels in october. with us is abhijay sandilya, a manager at ihg hotels. how is recovery going? have you seen big volumes of tourist returning to japan? annabelle: --abhijay: on the day of the announcement, october 11 we saw the single biggest pickup on the day. since then we have seen 80% growth month on month between september and october. absolutely, we are seeing pickup coinciding with a japanese national travel subsidy program currently in place by the japanese government. in addition, we are seeing foreign guests return. that's very exciting. to your second question on the

weakness of the yen. we are absolutely seeing benefit from our u.s. dollar denominated consumers. it is 40% cheaper. good news for us on all fronts. haidi: put like that i think, gosh, we really do need to make that trip to japan. what has changed? the type of travel you are seeing from tourist? how much has the overall industry had to transform over the past few years? abhijay: it has been a very tough three years and we are very excited we are now looking forward rather than behind. travel has changed. we saw in the last six months, when business travel did resume, we saw longer trips because it was more difficult to get the aircraft ticket. we are seeing asia-pacific wide airlift numbers down. consequently, that means we are

seeing guests stay for longer to make the most of their time in japan. yes, as you said, haidi. they are booking their trip because the tickets and seats are going quickly. kathleen: all the stories essay hotels are having a hard time getting staffing back to normal erie it a headline "goes down: -- ghost town: japan is opening borders but visitors are finding hotels closed." abhijay: that is the biggest challenge the industry is facing, not only accommodation, but other tourism sectors, retail, travel. we have seen this trend around the world. ihg operates in over 100 companies -- countries. we feel short to medium-term pain, but we are relying on the special skilled worker visas the government has put out to try to

bring in more. but, it is an exciting tourism landscape for guests or consumers to come to japan. it is also an exciting employment landscape because we offer a unique product where colleagues in the industry can live and learn and live an exciting life while they are doing it. short-term pain, but we are very confident we will bring staff that. tourism, globally, employed one in 10 people in the world. so, we are very confident we will come back to those numbers. haidi: it has only been a few weeks since japan has been reopened. even so, do you get a sense that tourists have changed? are people looking for the exact same experience they had when they came to japan in past years ? what are they want from a hotel like yours? abhijay: we are seeing a change. first, connecting and

reconnecting with people, connecting with environments they have not been familiar with the last few years means they are staying longer. we are also seeing an experiential element. at the top of the segment we focus on expert and chilled tourism. we are showcasing our hotel indigo that focuses on the local neighborhood. people watch those experiences, the quintessential japanese experience when they are here. haidi: thank you abhijay sandilya from ihg hotels about the reopening of his hotel and more in japan. tune in to bloomberg radio to get more from the days big newsmakers and in-depth analysis from the daybreak team in hong kong. listen via the app on a radio plus or bloombergradio.com.

stay with us. there is more ahead.

and it's easier than ever to■ get your projects done right. inside, outside, big or small, angi helps you find the right so for whatever you need done. with angi, you can connect with and see ratings and reviews. just search or scroll to see upf on hundreds of projects. and when you book and pay throug you're covered by our happiness it's easy to make your home an a check out angi.com today. angi... and done. haidi: we are getting numbers when it comes to new covid cases, local covid cases from beijing, 55 new local covid cases sunday.

we are also seeing the number at the highest in a few months. greater scrutiny comes into covid zero. health authorities there are vowing to unswervingly stick to their covid zero strategy, dampening enthusiasm we have seen in the markets for pit it. let's get a check on other business flash headlines. apple expects lower shipments of its newest iphones than previously estimated after iphones affected operations at a suppliers chinese factory. apple sees strong demand for the iphone 14 models, but lockdowns means customers will experience longer wait times. the chinese government locked down in the area around the plant until at least wednesday. the bytedance ceo will sell all remaining ftt tokens. ftt is a coin from sam brinkman freed's crypto.

binance holds about 53 million ftt tokens. charles has decided to unload the tokens due to "recent revelations." these are the stocks we are watching as trade opens in korea and japan. asian apple suppliers may move as the company expects lower iphone shipments. japan defense stocks may move after a concern that prime minister fumio kishida is posed for any action that threatens peace and security. this is bloomberg.

millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing, the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there. and this is the perfect time to join them... save hundreds a year over t-mobile, verizon, and at&t with xfinity mobile, and for a limited time get $500 off any new eligible samsung device.

>> this is daybreak: asia.

it is monday, but so much for the markets to contend with. we are bracing for more volatility when it comes to chinese assets. authorities said they will be sticking unswervingly to covid zero, but also seeing fallout across big tech as well. >> who expected apple to announce lockdowns in supplier factories means less new iphone 14? it could hit christmas sales hard, it could hit first quarter earnings. >> we are watching apple suppliers at the open. one of the many themes investors are poking -- focusing on. we have the start of trading for cash treasuries. we are watching the move on the two-year yield. earlier it reached 4.8%. we have not seen that since 2007. a signal that markets are saying it is a strong jobs report that

came through friday, so the fed will need to stick with its aggressive pace of tightening moving forward. also the terminal rate is going to be higher. first anticipated by investors. we have the nikkei coming online to the upside. also watching what's happening with the yen. strategists including at reserve holdings say it is likely to stay around 147. traders a little bit wary, we have a key u.s. inflation print coming up this week, but also you have the move higher for the dollar this morning, given china's covid zero policies. let's take a look how that is playing out in korea this morning. watching what's happening with the korean won, you can also see weakness is coming through at the start of trade. there had been a lot of optimism in the previous week that china was set to loosen strict pandemic policies. but given the headlines from apple this morning, that is something weighing on the trading outlook. given that we understand apple

shipments had been affected given the lockdowns in china. officials also saying they plan to stick unwaveringly with covid zero. in terms of the outlook for the kospi, we are also looking fractionally higher. to australia, one hour into the session for the asx 200, we are still seeing it in the green. what is leading at higher are the moves you can see in the materials index, an indication some investors are still buying into the reopening trade, given of course that a lot of investors had been cutting exposure. there is still a bit of catch-up to play, perhaps as well. for what we are seeing with brent crude, it is a sign others are more wary of the outlook for the mainland economy. haidi: our next guest is more optimistic on china than others we have spoken to. he says the market selloff has been excessive and plenty of money is waiting to get back into the country. with us now is the asia portfolio equity specialist at -- investments.

to make money off china you need to get a couple things right. one is to know when covid zero is going to end. the other is alignment with other priorities in policy. is it possible to get that right? >> we do not have a crystal ball to tell us, but we know for a fact the markets have been oversold the past couple years when it comes to investors selling. when you look at the hong kong listed shares as well as the adrs, particularly the onshore a-shares, overall performance has been much better. look at the outperformance on local currency basis, that's why our views are focusing more on the domestic a-shares where there is less foreign investors who are speculating with markets. haidi: we have had from a -- we have had fomo. perhaps the new acronym is cita. china is the alternative.

is that a theme you might buy into? ken: i do not think it is an alternative. it is important for a lot of investors' portfolios. right now there's a lot of news. various directions on a daily basis. we do not see chino -- china as an alternative. we see it as a strategic medium long-term holdings. there is short-term noise. we look at opportunities were especially what we have seen over the past few years, you look at valuations, earnings growth potential, we do still see a lot of opportunities, albeit more on a-shares, but there are more opportunities for the hong kong listed shares as well as adrs. kathleen: tell us about one of your top conviction calls. you are long-term positive on sectors aligned with the chinese government policies. things like brokers, small and medium enterprises, and more. ken: the fact is that policies are going to be important. when it comes to investing in china the fact is while we do

have to look at overall investor sentiment, we also up to understand geopolitics is going to be a key topic and theme in china going forward. we know for a fact china is very much focusing on tech self-reliance. they are focusing on domestic economy. you have to ride this policy tailwind. understand specifically which sectors are going to benefit in the medium to long-term, but also short-term as well when there are changes and shifts within the policies. kathleen: tell me how this plays out in terms of actual investments. you said investors were negative on the new politburo standing committee but you believe their extensive background of running key chinese cities in beijing and others is something people have overlooked. ken: i think investors right now -- they look at the news at the very beginning to see when you look at the new standing committee, with the politburo, they are very much sort of

president xi jinping's inner circle. when you look at the people who were chosen, they are responsible for overseeing the developments of key major cities in china, particularly places like beijing shanghai, as well as wenzhou. it is very important because for the next five years you have individuals who did oversee some of the key strong rises within the various chinese cities. haidi: outside of china, where are the opportunities you see, particularly if the follow the fed cohesiveness of such bank action trade is starting to get messier going into next year? ken: despite the fact everyone is looking at valuations and india being one of the most expensive markets out there, we see opportunities investing in india. when we look at where we are with india and corporate, we look at the indian banking sector, there is a lot to like.

when you look at some of the new areas we are seeing more ipos especially when it comes to areas like real estate, when it comes to specific areas around consumer discretionary as well, there are key areas, what we see in india today is potentially what china was 20 years ago with all the potential for development in key areas. haidi: ken wong, eastspring investments. thank you for joining us. now let's get to anna ball for the big market movers -- annabelle for the big market movers. annabelle: thank you, kathleen. so far the reaction is looking mixed, though we are seeing the biggest decline for lg at the bottom of the screen. what is driving that is what we have been discussing, that apple is guiding for lower shipments of its top end iphones. that is the latest 14 model and the pro model as well. given the ongoing lockdowns in china.

also the metal space this morning. there was a lot of anticipation in the previous week that china could be looking to loosen strategies, but although we had officials vowing to stick with covid zero, we are still seeing those moves higher across the middle -- the metal space in korea and japan. following higher for the australian stocks. >> let's get to vonnie quinn. >> facebook's parent meta is planning to begin layoffs that will affect thousands of workers. top job cuts could be announced as soon as wednesday with employees told to counsel non-essential travel. layoffs come as meta struggles with losses while investing in developing its metaverse business. after laying off half the company friday, twitter is asking dozens of workers to come back area sources say some were laid off by mistake while others were let go before management realized they are needed to

achieve features wanted by elon musk. twitter is delaying the rollout of verification checkmarks prepaid users until after this week's u.s. midterm elections. . the people's bank of china has voiced support for an investigation into unspecified violations by one of its deputy governors. his name was no longer on the pboc website list of top executives as of saturday. a statement from china's central banks as the ruling communist party is determined to fight corruption and people should learn lessons from the case. u.n. climate talks have begun with a deal to discuss how rich countries can pay for the damage caused by global warming elsewhere. the breakthrough will allow diplomats to debate loss and damage during the two week cop27 meetings for the first time. industrial nations have blocked attempts to add this to the agenda despite demands from developing countries. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn, this is

bloomberg. kathleen: still ahead, we will discuss global feud security -- global food security. joseph glauber joins us live. up next, china says it is unswervingly sticking to covid zero. what this means for traders next. this is bloomberg. ♪

annabelle: we are just over 10:00 into training for korea and japan. sharp slumping more than 6% at the start of trade, down to its latest earnings results. basically sharp is guiding for ¥25 billion for operating profit. that is a 45% drop from the analyst consensus. we can see that being reflected, that disappointment in stock trading at the start. sharp also in focus given it is an apple supplier. essentially apple has guided for lower shipments of its top iphone models. that has given china very strict pandemic policies. haidi: we keep talking about the unswerving commitment to covid

controls, let's get more from our bloomberg chief north asia correspondent stephen engle, our chief china markets correspondent sofia horta e costa. to a lot of people watching the frenzy in the markets this is not a surprise. stephen: after the frenzy last week and expectations china could start outlining some of their steps to open up, it was very interesting to me the national health commission held a rare press conference on a weekend to essentially say, you know what? covid zero or dynamic covid zero, however you want to call it, the restrictions essentially are in place and have been completely correct is what the mental health commission said. previous practices have proven our prevention and control plans are completely correct. this comes at a time when we

have seen a surge in cases across china as we do get towards the winter months. beijing reporting 55 cases, wenzhou reporting 1325 local cases on saturday, double the number on friday. countrywide, 4244 new cases on saturday. that's one of the risks obviously, but you are starting to see also maybe state media comments that this works. people's daily for weeks has been essentially saying covid zero has been successful. kathleen: there are still so many china bowls. -- china bulls. how is this going to impact the markets? sofia: also a lot of china bears. the rule for investing in china is you have to contend with a lot of volatility. that was the case last week.

it is set to be the case starting today. we are looking for a weaker open. the yuan is falling, it's very risk off in markets but not really completely unwinding gains on friday. those were massive gains and a lot of that we will see points to some short squeeze. some people unwinding bearish positions. the market really wants to believe this covid story. even if what stephen just said -- even if the party line and the official rhetoric commits to this unswerving covid zero policy, watch what i do not what i say is what the market tends to do. we might see risk off the table. if we do get signs of some tweaks on the ground that covid zero is not a strict, even if it is here to stay it is not as strict as before. the market will like that. but again volatility is the name of the game. it is a tricky trading environment.

kathleen: you have lived in china and worked there for so long. do you have any sense that xi jinping and his team did not want to go from the party conference to ending it because it would look so blatantly political? stephen: they are going to take a step-by-step approach and there's going to be a shift in rhetoric as well. it is what they do, not what they say. i agree with what sofia said. i also agree with what jeffries analyst -- a jeffries analyst said. there's going to be a shift in official propaganda, that will become -- that will come before official easing. that's why i look at people's daily and the like. the people's daily friday had an editorial that downplayed the seriousness of long covid. we have heard commentators on social media and television saying china was going to benefit because the west is going to be dealing with long covid for years. there are scare tactics that happen percolating throughout china but the people's daily came out with that commentary,

essentially saying -- i am paraphrasing. that long covid is not as bad. people are going to start reading, is this the propaganda organ trying to prepare the populace for an opening up, which inevitably would lead to a rise in the number of cases? that is where the shift in rhetoric could be an indication they are readying people's minds for potential upsurge in cases. haidi: is that enough to support further gains in the yuan? we saw the biggest daily rally in decades with onshore and offshore last week. but there is not a lot of good news this week. sofia: i really like what stephen just said. it is all about psychology, not just when it comes to covid zero and trying to read the tea leaves, but also markets. this is a sentiment driven market. it is not a market that is trading on valuations and earnings and the economic picture. it is all about seeing when

people start to get more positive even if nothing changes in china. for a few more months at least a lot of analysts saying march next year at the earliest will be when they are expecting covid zero to begin to start being pulled away. what the market really needs is a shift in psychology. maybe the news is not so bad. maybe we have reached the bottom. maybe the worst performing stock market in the world, which is the hang seng china enterprises index in hong kong -- maybe that is enough. maybe there is already a lot of negativity in the price. when we start to get that shift, the move up can be really fast. kathleen: bloomberg's chief north asia correspondent stephen engle and sofia horta e costa. coming up, why people shown the door at twitter are being asked

to return just days later. this is bloomberg. ♪

>> we have to collectively admit we do not know a lot about quantitative tightening. quantitative tightening is for the moment experimented by a couple of other central banks. the bank of england being the case and point. we are learning from what they are doing. haidi: christine lagarde there. let's look at futures in europe, up this monday morning. when you take a look at the stoxx 50 futures, this is how we are seeing, a little bit of falling, 0.2%. that rally on the back of the

sentiment boost in china as well as european stocks rallying for the first time in three sessions on optimism. we are seeing essentially some of that being given back in the session today. ms ci europe up close to 2%. german dax futures down by 0.25%. we did see that 530 in germany inverting in september, cans -- consolidating slowdown recession fears. we saw the dollar index taking some pressure off the euro, but we are seeing that pressure resuming, 0.2% move in euro-dollar trading. kathleen: to the latest on tech industry layoffs, last week twitter fired roughly half its staff. this week according to sources cited by the wall street journal, meta platforms is preparing to axe thousands of workers. what is hitting meta so hard? >> they are struggling to make up for losses. it should not be a surprise financially as many analysts have expected they would have to

cut costs. it is a surprise to many than the industry who have only experienced growth in a lot of these tech companies. facebook's parent meta reportedly preparing to begin layoffs that will affect thousands of workers according to the new -- the wall street journal. they are citing sources that say job cuts could be announced as early as wednesday. they say the company has told employees to cancel non-essential travel. the layoffs would come as meta is struggling with growing losses while investing in developing its metaverse business, which is proving unpopular with a lot of shareholders. mark zuckerberg has said in his most recent earnings call, stay with us. it will eventually pay off. meanwhile the stock is down more than 70%. zuckerberg has said meta will likely be smaller in 2023 then it was this year. drop in the bloomberg because the bigger picture, layoffs were

up 48% and the survey says more layoffs to come. haidi: twitter, the sheer chaos seems to continue. they may have fired too many workers or too early or fired the wrong ones. some being asked to come back. >> a bit of a reversal. bloomberg has been reporting that twitter laid off about half of its workforce last week. some 3700 workers were fired via email. now sources within the firm say some were laid off by mistake and twitter calling back thousands of employees that were either erroneously fired, or there was not a realization they were critical to the new features elon musk wants. musk himself tweeted out friday, the workforce reduction was unfortunate but there was no choice, he said. when the company is losing $4 million per day. he said everybody got more severance then legally required. those on staff meanwhile have

been working extended hours, some of them putting out photos on instagram of them sleeping at the office. sources tell bloomberg twitter is delaying the rollout of that verification check mark as part of its eight dollar monthly sub scription service until after the midterm elections. when musk strode into twitter headquarters with the sink saying let this sink in as he took over the company, he knew there would be changes -- many new there would be changes, but we have slight reversals. some laid off brought back and the check mark rollout delayed by at least a day or two until after the midterm elections are over. back to you. haidi: bloomberg's su keenan. let's get a check of the latest business flash headlines. apple says it expects lower shipment of its newest iphones than previously estimated after lockdowns affected operations at a suppliers -- at suppliers in a

chinese factory. apple continues to see strong demand for iphone 14 models, but lockdowns mean customers were experienced longer wait times. the chinese government has locked down the area around a plant in wenzhou until wednesday. west bank's profits -- westpac's profits coming in line with estimates. australia's biggest banks are reaping the war -- the rewards of higher interest rates. higher borrowing costs bolster lending profitability. berkshire hathaway reported a 20% surges and operating income in the third quarter to 7.7 $6 billion thanks to utility and energy businesses. but the insurance underwriting absorbed millions of dollars of loss. berkshire's cash horde increased slightly as buffett retained dry powder in the midst of the

market downturn. the global summit on climate change is underway in egypt. we ask bloomberg intelligence what they are watching next. this is bloomberg. ♪

annabelle: this is "daybreak asia." 30 minutes into the trading session for japan and korea, it is a busy start to the week.

the macro level, we had the u.s. jobs report friday. that showed some level of resilience in the u.s. economy. jobs still coming in strong even though the fed could be looking to hike rates by 50 basis points in december. a downshift in the pace of hiking. the inflation print is also due in the u.s. thursday but of course there is the most immediate concern for traders and it is whether the gains we have seen in chinese stocks over the past five sessions -- if they will extend into the new week. so far the answer is looking mixed. if we look at the fx space we are seeing dollar strength coming through so the likes of the yuan come of the kiwi dollar, the aussie dollar, lower off that. if you look across at commodities we can see gains here. these are the chinese contracts but we have bigger gains for the likes of copper, steel, aluminum. a level of optimism still around opening up even though we had health officials over the weekend confirming they planned to stick with covid policies in

china going forward. these strict pandemic measures. in terms of the equities picture we are still risk on at the start of trade. we are seeing the nikkei up 0.7% 30 minutes into the session. let's take a look where we are seeing the biggest moves in more detail here. we can see it is being driven by those moves in commodities, the likes of materials, industrials, energy, they are the top three gainers in the asian session thus far. the big question still is whether gains will hold. we will get the answer when mainland markets open in china and hong kong in one hour. kathleen: let's get to vonnie quinn with the first word headlines. >> china says it will unswervingly stick with covid zero, dashing hopes for potential easing of restrictions. health officials briefing -- told a briefing the measures are needed to fight outbreaks but officials will also ask local governments to correct excessive

control measures. speculation over a new wave of covid zero helped push stocks. president biden's comments on coal have angered a key senate ally. biden vowed to close coal plants as part of the u.s. energy transition. joe manchin called the remarks divorced from reality. the white house says the comments were twisted to suggest a meaning that was not intended. former u.s. president donald trump has suggested an announcement is imminent he plans to make another white house run. sources say he is planning to confirm his 2024 campaign after the midterms. trump used a rally to attack florida governor ron desantis who is widely considered trump's current top opponent in the republican primary field. sources say credit suisse is planning a fresh round of job cuts at the global wealth management business starting next week, adding to dismissals that have already started. the swiss lender is preparing to notify affected personnel mostly support staff and investment advisors.

in the asia-pacific, some teams could see cuts of 10% of headcount. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn, this is bloomberg. haidi: well, the u.n. climate summit is back in africa after six years. cop 27 is underway in egypt happening in the shadow of global food and energy shortages. here is a look at what to expect. ♪ >> flooding in pakistan, hurricane ian. wildfires in california. drought in somalia. just some of the emergency use that will be addressed at this year's cop27 u.n. climate summit in egypt. but the landscape since cop26 a year ago in glasgow has shifted. dramatically. that is mostly due to the energy

crisis sparked by russian president's invasion of ukraine. according to bloomberg mef, there is just a four in 10 chance of this year's summit becoming a success. goals had already been slipping. developed countries committed to giving 100 billion dollars a year by 2020. the oecd now expects the aim will be met three years late. last year's pledges such as phasing out fossil fuel subsidies are struggling. of the 194 countries that signed the paris agreement, just a handful are updating their pledges towards emission reduction targets every year. now with political and business leaders gathering in the desert to discuss climate, the -- does sharm el sheik risk

becoming nothing but a giant copout? kathleen: china's top envoy for climate change has called for more aid to developing nations. let's bring in bloomberg intelligence asia's eps g analyst michelle. china is putting energy security above pollution reduction. very aggressive coal expansion plans. this does not seem like a move in the right direction. how much could it derail global climate goals? >> will indeed, in china, there is talk about higher national energy security, it might mean more coal given its readiness and high cost efficiency. if we look at china's coal-fired power plants, construction pipeline is up to 200 gigawatts, more than half the global. if you look at global coal mining capacity, it is going to expand by 27% with one third coming from china.

it is definitely quite a big thing to come out. if you look at china's emissions from the new coal mines, it could be 576 million tons, already more than the rest of the world. that could add quite high uncertainty to the global climate. haidi: what about the green funding pledge for developing nations? is there a country that needed the most? how does it fit into the broader discussion about reparations from wealthy industrialized countries? michelle: the funding is quite a key to the emerging countries. for the clean transition. we have pointed out in our recent report that india is one of those most needed -- that most need it. if it wants to hit its 2030 wind and solar targets, it has to

ramp up green investment by two times. and to get it installed three times faster. we see the private investment and support is not there. it relies a lot on these international funding. kathleen: indonesia seems to be catching up in renewable development. do you see turnaround? which sectors have the greatest growth potentials? michelle: in indonesia, development has been quite behind. wind and solar only accounts for 0.2% of the total power generation. but what we see right now is we expect to see major changes, even turnaround situation. the country just signed a major partnership with a rich country in the upcoming 2020 conference

in bali in mid-november. the country has recently raised its renewable -- or its carbon emission cut target before cop27 , showing very strong ambition. green bond issuance has been picking up quite robust as well thanks to the software issues. after all, we think there could be more chances for it to grow. solar could be one of the most beneficiary or fastest growing sectors given shorter construction time and its cost-effectiveness relatively. haidi: michelle leung there. world food prices have held, but security remains at risk for global consumers. the international food policy research institute joins us to discuss the outlook next. this is bloomberg. ♪

kathleen: ahead of this year's g20 leaders summit in bali we are putting a spotlight on key issues the group is facing post-pandemic. today we are focusing on the world food crisis. the u.n. agencies has global food prices held steady in september, -- in october,

marginally lower from september. prices have been falling since hitting an all-time high in march. while that may offer relief to consumers, costs or mean higher than previous years with no signs of easing the many countries. harvests are at greater risk as geopolitical tensions increase. let's take wheat as an example. the price has been volatile following yesterday's about-face from russia over the you can grain export deal. price spikes show how closely the market is tracking export prospects from the black sea region, heavy weight the global grains trade. with us now is joseph glauber of the international food policy research institute. i'm just wondering, in terms of how difficult this is in terms of this big switch, how bad is it? how much worse has it made a situation that was already for many people a food crisis, not just a shortage? >> we have had very tight

markets. there is no question. we had tight markets prior to the war. january or so of this year. what happened with the war, we saw the run-up in prices. they have come down. they are still 50% above where they were a year and a half ago. unfortunately, with so much uncertainty over the last week or so with weak prices going up, prices falling once russia announced they were still going to maintain the current deal between ukraine and russia in terms of shipping wheat, the world needs more wheat. and a lot of other commodities. unfortunately because markets are so tight, we start looking at climate events we have had where droughts and other things have meant we have not been able to replenish local stocks. kathleen: so what can be done

right now? it seems like you could say very little. russia has cut things off, they are not going to get going again . fertilizer has been expensive and scarce and getting more expensive all the time so crops are not getting planted and attended the way they should be. is this going to be getting food , just delivering food to people in the poorest countries and cannot get it? is there something else that can be done? joseph: well, it largely is a question of price. food is available. countries have been able to find alternative sellers. there are a lot of countries that produce wheat. there are a lot of countries that export wheat. this deal with russia has been very critical. it has helped a lot in terms of getting grain out of ukraine and that has been important not just for the rest of the world, but also for ukraine producers. you have to remember, when the grain is unable to move, prices are very low.

that is a huge disincentive to plant crops for next year. already we see plantings for wheaton next year look like they are 23% lower than this year. that pushes short supplies into next year as well. i think that is the real concern. haidi: this year has been a lesson learned when it comes to rethinking energy security. should long-term agricultural strategy get the same sort of reconsideration? was it a failure that it was not perhaps as well built international security plans as energy security is? joseph: i would argue the system has worked quite well. we are talking about a major war in a wheat producing and corn producing part of the world. despite big disruptions caused by this war, commodities have

been -- we have seen other countries step up exports. again, we have very tight markets, so that means prices are high, but we have seen producers respond worldwide by planting more. stocks are tight and whenever you have very tight stocks, that means weather disturbances in one part of the world can reverberate across other markets. we have seen high price volatility. continued high prices. even though they have come down a lot since start of the war. haidi: it is not just the war, it is also climate. what can be done particularly as we get into cop27 starting yesterday? in terms of sustainable farming or more climate proofing. joseph: those are actions that need to be taken but they are longer running solutions.

one has to come up with ways of producing more food to meet the shortages we have seen. yes, in the long run, we are seeing the move toward more green fertilizers. in the short run there is a need for more fertilizer. that is one thing countries have tried to exclude. fertilizer exports from russia for example, exclude them from sanctions even though there is still a lot of friction and one does not see quantities of fertilizer on the world market that one would like to. kathleen: is there anything in terms of how fertilizer is made, what goes into it -- it is a specific question but this has been one of the linchpins for why the food problem exists right now. amidst the war. and as you mentioned, broader problems. joseph: it has had less to do

with current prices. the problem is moving forward. we are talking about countries planning -- planting wheat and more commodities and prices are high for input costs. part of it, they are tied to energy prices, particularly natural gas prices have been very high, particularly in europe. this summer when we saw natural gas prices hit record lows, a lot of plants shut down in europe. we are probably going to see imports to europe this year, something you typically do not seem. for a lot of mineral fertilizers like phosphates and potash, they are made in a handful of countries. that is more problematic. you are talking potash out of belarus and russia accounting for roughly 40% of the potash created in the world.

potash is a critical fertilizer and grading minute -- ingredient and there is not a lot you can do about that. canada has stepped up production. brazil was able to meet some of its needs this year by importing from -- increasing imports from canada. phosphates, there are countries like morocco who do produce that fertilizer, but unlike wheat, you can find wheat grown all over the world. mineral production for these various fertilizers is really in a handful of countries. and some of those countries have put on export restrictions and other things. that, i think, is the other thing. not only do we need to address long-term trade -- climate change, we need to get better trade flows. haidi: joseph, great to have you with us. we appreciate your time. joseph glauber, senior research

fellow at the international food policy institute. as we count down to the g20 summit, we will have more analysis on challenges facing the group. monday at 7:40 -- 8:40 a.m. hong kong time on bloomberg television. we are seeing reports of 1930 five new cases being reported for cointreau for sunday. we know there has been an ongoing outbreak in guangzhou, a very factory intensive part of china. the city reporting case is over 1000 the past couple days that we have seen. new infections as the government said some people had potentially violated movement restrictions causing the virus to spread to other districts. we have seen the likes of the gaungzhou autoshow having to be postponed as a result. a number of residents have been asked to avoid leaving their home unless the pcr testing or emergency medical treatment. we sought in october the factory

hub going through another outbreak with schooling, dining at restaurants, also stocks. quite a bit of disruption for a manufacturing hub that is home to 19 million people. more to come on daybreak asia. this is bloomberg. ♪

kathleen: now a quick check of

business flash headlines. elliott investment management is planning to tender shares to phillip morris's takeover offer for swedish match. backing from elliott leaves the swiss tobacco giant on track to complete the takeover. the hedge fund holds a 10.5% stake and had the potential to block the deal. judging ping says he will sell all remaining ftp tokens. the coin of ftx crypto, in which finance used to hold a minority stake. finance holds about -- binance holds tokens worth $529 million. the choice was based on, quote, recent revelations. >> chinese officials have reaffirmed their position on covid zero. in order to get an accurate count of infections across the nation bloomberg has launched the china covid dashboard on the terminal. our asia consumer and health

care reporter joins us now. it is obviously key for a number of reasons to track cases in china. the rest of the world mainly looking at the hospital cases and deaths but each individual infection is important in china. >> we are offering this exclusive data point from bloomberg terminal where you can actually pinpoint outbreaks by province and see the acceleration rate and where the outbreaks are catching attention of the government. by this dashboard you can actually estimate what might be the impact on the economy and supply chain. this data is very accurate in terms of adjusting for double counting because china reports covid cases only by those who have symptoms. we are adding also those a some to medicate his -- asymptomatic cases to reflect what the government is looking at. kathleen: how is this different

from resources that are already available to track china's covid situation? i would think the government has lots. >> this will be the viewpoint from the government. for example, johns hopkins university tracks covid globally. for china their numbers are just reflecting on what china government says are confirmed cases. those are only people who have symptoms. that will be much lower than what is happening inside the outbreak, where a lot of asymp tomatic cases are happening because of omicron. what we have is helping china investors to understand what kind of reactions china might take. kathleen: that is our asia consumer and health care reporter. terminal users can access the china dashboard on cvid . another exciting function.

haidi: those linked to the reopening are in focus. health officials are bowing unswervingly to commit to covid zero. we are watching apple suppliers as well. the company saying it is expecting lower iphone shipments as a result of the supply disruptions on gaungzhou. we are watching the likes of sunny optical lens tech. chipmakers as well. naver reporting earnings meeting third quarter estimates. we are looking ahead to the start of trading in hong kong, shanghai, and shenzhen. ♪

david: it is 9:00 a.m. in hong

kong