shery: we are counting down to asia's major market opens. haidi: the top stories, the selloff and capped the currencies deepens as bytedance walks away from the taker of ftx. bitcoin to. its lowest level in two years. outgoing fed dove charles evans says it is time for the central bank to slow down ahead of key u.s. inflation data due out in the coming areas -- hours. and president biden throws his hat into the ring for 2024 as republicans limp to control the house. >> our intention has been to run again regardless of what the outcome of this election was. haidi: let's get you straight to the start of trading in sydney as the cash session staggers online. seeing a muted start given u.s. stocks did not exactly provide much of a tailwind we saw broader selling as

cryptocurrency volatility is starting to spread beyond the borders of just that asset class and really affecting the downside sentiment more. downside about .2% when it comes to the start of the cash trading session. three year 10 year yields holding steady. we heard from the rba deputy governor really commenting, reaffirming the central bank commitment to continue raising rates and a commitment to getting back to the 2% to 3% inflation target even as we see broader outlook showing core inflation still above the top of that range by the time we get to the end of 2024. continuing to watch with the rba has to say about the future path of rate hikes per it the aussie dollar is a little weaker under $.65 and seeing the dollar rising ahead of the key cpi report as we see broader equities, bitcoin and other resets -- assets, falling. shery: we are expecting the u.s.

cpi numbers with core cpi numbers at the highest in 40 years. that number will be taken seriously when it comes out thursday. we are seeing a little bit of upside for u.s. futures in the asian trading session after the s&p 500 lost ground. every sector on the s&p 500 was down today. not surprising giving anxiety over the cpi numbers. not so much of a big red wave we were expecting from the midterms. investors trying to digest that bit disappointing earnings and crypto meltdown. the 10 year yield around 4%. oil under pressure. we continue to see pressure in the asian session below $86 a barrel. u.s. inventories rising not to mention renewed lockdowns in china not helping sentiment when it comes to the oil space. not to mention corporate stories playing into the markets with meta cutting about 11,000 jobs were 13% of their workforce. but the focus has been on cryptocurrencies.

they are trading a little bit of upside in the asian session but not enough with bitcoin still below the $16,000 level. we are talking the lowest level since 2020. it does not help that bytedance -- that by nance away from the ftx bailout. haidi: we will be watching some crypto related names when they begin trading in tokyo and seoul in the next hour. in the meantime let's bring in hannah miller. we are talking about this being a moment of existential crisis for the asset class. what will it take to be able to find support? hannah: the news about finance walking away -- binance walking away with this deal has rattled the market. so it would take a lot to really get investors back on board. i think the fallout is still happening here.

i think finding resilience among companies, or maybe if ftx was able to somehow get a cash injection, that would help it stave off bankruptcy. those are things that could maybe help crypto get that contract. shery: but at this point we are not seeing any of that support especially when we are hearing the likes of these huge investors like tiger global, they all got hit. hannah: yes, investors took big hits. i think it will take a lot to have them support this company again after so much doubt has been sewn here. so, he has a really tough job on his hands convincing investors to come back on board with his company. haidi: what does this tell us about the long-term prospects for crypto into -- crypto integration? hannah: i think we are going to see greater regulatory scrutiny

in terms of how crypto is integrated into finance. we are going to see more oversight from regulators around the world. we are also just going to see doubt among mainstream consumers. sam bateman free is an extremely recognizable face. the fact he has had this spectacular downfall is extremely unnerving not just to those in the industry also regular consumers. shery: hannah miller with the latest on that crypto meltdown that we at one point talked about bitcoin and currencies as a hedge for inflation. let's talk about inflation, because red u.s. inflation expected to have cooled off a few degrees in october but not enough for the fed to back away from steve rate hikes. kathleen hays is here with the latest. what is expected and what does it mean if we get another very hot print? kathleen: what is expected is the hot print and what is expected for the fed is it does

not change much. but let's look at the numbers. specifically what we are watching for tomorrow, it is not just about what they think now. it is where things are heading and how that will set the path in 2023. if you go to the bottom first, you can see a mixed bag. you have cpi on a monthly basis at a very high 0.6. that is a lot due to bank -- gas prices pretty that could affect inflation expectations. about improvement -- medical care costs are expected to improve. let's look at a bloomberg chart that shows the year-over-year number particularly for the headline cpi. it is supposed to come down to 7.9% from 8.2%. in other words, the further you get out into this year, the more you are going to be looking back

to numbers that over time were so high that as you start coming down you are year-over-year number looks better. core cpi is excited to go down from 6.4 from a high of 6.7 in september. year-over-year numbers annualized. in terms of what the story is, inflation is still way too high. that is what we will see in october. and we already saw a jobs report. it was really quite healthy. not much sign of slowing down at all. specifically for the december meeting that we will get in the middle of next month, economists are saying you're still going to have the 75 basis point hike discussion on the table. 50 is still a pretty big number. the president of the richmond fed basically said today they are going to do what it takes. here's what he said. >> this slower turn to normal levels of inflation could threaten the stability of inflation expectations. if there's one thing we learned

in the 1970's is the fed cannot let infinite -- let inflation cluster. it will come back even stronger and will require more restraint. kathleen: this phrase, we know it happened in the 1970's, we know what happens if you have extremely high inflation and you start fighting it. but then you start easing off. maybe you are concerned you are going to do too much or fall into recession. but charlie evans will be leaving the chicago fed as president month. he does see the benefit in a slower piece of hikes. he hopes they can get there as soon as possible. but i guess if we had charlie here and we asked him about stopping too soon, he might also say the kind of thing tom barkan said, we have to be careful to make sure we have done what we need to do before we do any kind of extreme slowing down and certainly not a pivot yet. haidi: kathleen hays there. we have breaking news when it

comes to changes in the leadership at apple. apple has hired a startup founder in the form of a facebook executive to run its information systems group after a number of departures. this is according to people with knowledge in a matter. he will be the i.s. and tech department that handles the infrastructure behind apple's online services, their customer support and website. apple has referred to these operations as its nerve center. that lets people stay connected. we have seen this reported decision really adding to a number of management changes at apple. they are facing the loss of senior and key executives. we have seen a chief privacy officer, the vp of industrial design, head of the online retail store, vice president of procurement as well as some senior roles across software engineering either moving on or retiring. so we're hearing some changes there for apple, tapping that

facebook veteran to be there information had. -- their information head. president biden says he plans to seek reelection after democrats managed to stave off worst-case scenario congressional losses in the midterms. let's get more from emily wilkins in washington. our previous guests of the only poll that matters is the poll on the day, the vote on the day. once again we saw some missed predictions from previous polling efforts. emily: absolutely. there were projections that republicans might actually have a red wave, that they would have giant margins, that we would be able to call it tomorrow night. that did not play out. democrats had a better night than expected. while it is still likely republicans are going to be taking control of the house, they will do so with very narrow margins. that will make it difficult for them to get any sort of legislative things done. and of course it would be a hard

divided government anyway. the senate is still up for grabs and we might not know that for december. the state of georgia is going into a runoff and depending on how other states get called, they could again be the make or break factor in how the senate control next year pans out. so democrats, they were expecting to potentially -- that did not happen. a lot of questions remain about what happens next and what the government next year looks like. but at this point if we can pull anything at this point it seems to be that voters kind of handed washington, d.c. a bit of a split ticket saying we are going to vote for democrats, republicans, you need to figure out a way to work together. shery: a lot of questions also left about what happens to donald trump. we know now that president biden is running again in 2024, but with these high-profile candidates that trump endorsed falling to democrats, does this change the landscape for him? emily: it will be interesting to see. before the election, trump said

he would have a major announcement on november 15 at mar-a-lago. we have not heard much about whether that is still going to happen. he took to truth social the other night, his social media platform, and said that while last night was not really good for republicans, it was really good for him. so he still seems to think that he can be able to pull off a 2024 win. of course at this point we are waiting for him to officially announce. biden said he would be talking with his wife and his family and make a formal decision on whether to run in 2024 early next year, so we will be keeping an eye out for that. of course after last night, you have this reckoning within the republican party, these questions if trump is really good for the republican electorate. republicans have suffered losses in 2018, in 2020, in 2022. all years that after 2016 and trump's election. there is a bit of soul searching that has to be going on in

their public and party. you have potential candidates like ron desantis waiting in the wings, hopefully they get a chance, but it all depends on what trump decisive. shery: president biden looking forward to that. it would be fun watching desantis and trump take on. let's get to vonnie quinn now. vonnie: russia has ordered troops to leave ukraine's city up kherson. speaking a televised briefing, the russian defense minister called on troops to retreat from the city, which was the first regional capital to fall in the invasion and is among the territories moscow claimed to annex in september. putin said to be planning to skip the g20 summit next week. sources said kremlin is seeking to avoid confrontations with tensions over the invasion of ukraine expected to dominate the summit. foreign minister sergey lavrov will attend the meetings instead

of putin. the chinese city has extended covid curbs on the world's biggest iphone factory despite ending a lockdown. a spokesperson for foxconn says its plant will remain under a closed loop, meaning the flow of goods and people will remain can trailed. the city's restrictions have prompted apple to warn it may ship fewer devices than anticipated. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: still ahead, we discussed how u.s. chip restrictions can impact washington's allies and our top chipmakers. insights from rhodium group becoming this hour. first i look at jp asset investment clay. hear why kerry craig thinks there are better opportunities in credit than equities. this is bloomberg. ♪

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>> inflation is clearly far above our goal. communicating that that is our north star that we are heading to, and how we plan to do that and how we see the economy evolving is extremely important. haidi: our next guest says investors are looking for the

trough in equities, but market bottoms are historically in line with earnings. joining us now is kerry craig, global market strategist at j.p. morgan. what you are saying is when it comes to pe, it's so looking too high historically than what we would typically see for the real trough in this market. kerry: good morning. that's right. if we look at how markets have bottomed in the past obviously we know that they find lows before the earnings outlook or even the economy. but we are looking for signposts, we have to look back and say valuations have been the lowest reach at the same time as the lower market. if you look at valuations on the s&p 500 it is about 60.5 times forward pe basis, above the 15 year average. if you look at past pmi markets, their multiple has been even 10 times over the last three. those valuations, while much lower, still seem a little high

given expectation the market has bottomed. there are other indicators you can look at as well. again, they could still trend down and we could see that weakness and that would be another sign that when you get to that low, that is when the market bottoms instead of perhaps thinking we saw it back in october. haidi: the recent volatility we are seeing in crypto, and we saw in the overnight session that deepening negative sentiment is spreading to beyond just that asset class. is this something where you see broader contagion and just another region -- reason that perhaps the recent rebounds have been bear market rallies? kerry: typically get one more -- you get more than one bear market rally in a cycle. even having one would be unusual. i think when it comes to cryptocurrency, a lot of the money that went into it was because there were not many alternatives. obviously that is unwinding.

i think people are looking for more opportunities and traditional assets around equities and bonds given where valuations have moved. and trying to find that outlook in terms of returns. it has become evident that the volatility we have seen within the crypto space is not something people want within their portfolios, that is not fulfilled those promises of being risk off or defensive asset or even inflation hedge. that is really coming to the fore and is added to pressure we have seen since the middle of the year when it comes to crypto prices. shery: in traditional assets like bonds and equities, where do you find a better opportunities, especially when it comes to relative pricing? kerry: for us, still looking at traditional quality assets we see within the investment grade space. when we compare the be aa corporate bond spread or corporate bond yield to the earnings yield in the u.s., that spread has very much evaporated,

having been a large gap for a long time. it suggests relative pricing towards corporate bonds is quite good compared to equities. we still have that cautious attitude towards equity markets around the world. and we are picking up a little bit of kerry. those spreads could widen given the outlook for the economy and uncertainty that would come through but we feel that we board is a bit of balance when it comes to the credit space. i would stress that is on the high quality end when it comes to high-yield we expect spreads widen more. we could see more risk around recession being priced in there. we will be keeping it towards the higher quality end. shery: how will the u.s. cpi print on thursday play into your call? kerry: as you were discussing earlier, i think there is expectation that year on come down by a few tenths of a percent across headline and core rates. the real issue is how much of it will be driven around those services and tightness is

feeding into wages and also in shelter costs. it is really coming back to the competition between the hare and the tortoise. the hare is tightening of financial conditions, the tortoise is slow movement in inflation and whether the inflation rate will come down fast enough or whether financial conditions will tighten too much. for us, the view is we will see inflation rates fall over the course of the next year but the path of that is still to be determined and the final rate is still to be determined as well and that will add to the uncertainty and maybe volatility we have seen in the equity market this year and a response the federal reserve to it. giving us reason to be cautious on equities given that there will be quite a large overhang for a couple months. shery: kerry craig, always good to have you with us. with his market calls ahead of the u.s. cpi numbers on thursday. you can get a roundup of all the stories in today's edition of

daybreak. terminal subscribers go to dayb and it is also available on the bloomberg anywhere app. you can customize your settings so you only get the news on the industries and assets you care about. this is bloomberg. ♪

shery: we are counting down to the start of trade in tokyo and seoul. in japan, nissan has raised its profit outlook after weak yen helped to make up for a persistent shortage of chips that's really restricted output. we do also have earnings from mequon and more. we are also watching fortress investments. sources saying it is nearing a deal to acquire for more than $1.4 billion pretty in south korea, the finance minister will

hold a meeting on the housing market. the government expected to ease some housing loan rules. bloomberg has come out with its november economic survey for south korea, forecasting that gdp will fall to 2.6% this year from 4.1% last year. inflation for the year is seen to double to 5.2% from 2.5% last year. we are also watching earnings reports from sk telecom, lg, and samsung fire as well. haidi: let's get a quick check of the latest headlines. the ftx fiasco has stirred some of the biggest aims and finance, including tiger global, as well as softbank, all of which invested in the crypto exchange. the company is now facing an existential threat after rival binance called off the takeover. investors of the once highflying crypto exchange are said to lose almost all of their investments. massive job cuts are set to

begun at meta. ceo mark zuckerberg said they will cut more than 11,000 jobs, a 13% reduction. it is the first major land array office in their history. it is following several quarters of disappointing earnings and a slide in revenue. goldman's top tier is set to -- services citibank tapped 80 employees to become partner, meeting this year's class is 33% bigger than last year. it is also expected to be the most diverse group elevated to goldman's top rank. coming up, rhodium group says u.s. chip curbs could be tightened over time. we get more on that, next. this is bloomberg. ♪

vonnie: i i'm vonnie quinn with

the first word headlines. binance has withdrawn its offer to rescue rival crypto exchange ftx. the binance ceo said ftx's issues are beyond his ability to help. that means ftx customers could be on the hook for steep losses. ceo sam bankman-fried told investors ftx is facing a shortfall of $8 billion and will need to file for bankruptcy without by -- financing. jong williams says inflation expectations are still stable. he also stressed delivering low and stable inflation is the fed's most import job. meanwhile, thomas barkan says the central bank will do what it takes to get back to its 2% inflation target. he also added the fed can back down over slow down fears and let inflation fester. >> this slower turn to normal levels of inflation could threaten the stability of inflation expectations. if there is one thing we learned

in the 1970's it is that the fed cannot let inflation fester and excitations rise. if we back off, inflation comes back even stronger and requires even more restraint. vonnie: the u.s. and china started unofficial conversations on climate related issues. climate envoys say he met with his counterpart for talks. he said the door is always open. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: president biden speaking after the midterm elections, give us some direction as to where he plans to take his administration. he talked about issues including taiwan and china, and what he expects to discuss with president xi jinping at a summit in asia next week. >> i am not willing to make any fundamental concessions. i'm looking for competition, not

conflict. so what i want to do with him wieh we -- with him when we talk is lay out what are red lines are. shery: let's get more from our next guest who expects more control surrounding chips from the white house. joining us is reva goujon, director of rhodium group. good to have you with us. we do have now a narrowly divided government here in the u.s., potentially when all the read -- all the election results are out. what indication does that give you about where washington is headed when it comes to policy towards china, or does it matter at this point? reva: well, a red wave has already been building in china legislation across the aisle with both parties. so of course we will have to see the final results of the midterms. we were looking at razor thin margins right now.

but it is very important we distinguish a lot of the political noise that will stem from this midterm result, for example a house select committee focusing on chinese issues, some of them fall into the petty politics. then the more substantial issues where both the white house is driving the agenda and were congress will try to influence. so, really depends on the issue. when it comes to expert controls on technology companies in china, that is really where the white house i believe has the reigns and is driving that agenda. shery: we have seen the administration is willing to bear the economic and diplomatic costs of doing more against china. what can beijing do at this point? reva: well, in retaliation it does not have very good options just precisely why the u.s. is unfurling this package of tech controls now while it has that strong leverage. of course we can always look towards export restrictions from

china and areas where it does have more supply chain dominance. for example, supply chains and the semiconductor supply chain, it is a common reference. but that would only underscore the unreliability of china in this policy debate about supply chain resilience. so it is not a great option. i would look in more subtle areas. antitrust is the one area where beijing actually has long gone influence to disrupt strategic dealmaking. as you see tieups between critical supply chain companies and semiconductors, there are already big deals in play that could be targeted in this, approval by sam are in beijing. they could be disapproved. haidi: what are the broader implications, especially when

you look at those who might be affected in the european markets, not to mention markets we already know are being affected your in asia? reva: right now, foreign partners are largely reactive to u.s. policy and the u.s. has shown a willingness to exercise extraterritorial controls in the technologies it is prioritizing. for example, computing, quantum, ai areas. and an area including high-capacity batteries. this is driving other partners into action. they do not want to be very reactive. the european commission is also considering an outbound screening proposal, very early stage. but they are talking about this precisely because the u.s. is likely to move forward on this issue during executive order. a lot of ripple effects in u.s. policy. the way the u.s. is designing expert controls is to how other

countries design there is. usually they are specific to a technology. the u.s. is changing the entire playing field. and applying china-based restrictions on technologies and linking leading-edge process notes to wmd use. that is completely new for a lot of these countries. it is uncomfortable. but that is where those long arm provisions play a big role. haidi: when you look at the broader outlook for the chip sector, in terms of cyclical versus structural elements, what is going to be more impactful? reva: right now of course you can hear from earnings reports from another -- a number of semiconductor companies where there is a lot of hurt. a lot of that will be from the cyclical factors. post-covid the stocking, decline and demand, consumer electronics after the big boom. a lot of that is in play where you are seeing a bit of a glut, particularly when you're talking

about leading-edge. so sustained demand and some legacy chips that have still been in short supply for autos. again, those cyclical factors are going to be influenced by recessionary fears and inflationary factors. but the structural issues in play geopolitically really matter here. in terms of the u.s.'s strategic technology competition with china, the u.s. tightening those controls and that adding a lot of risk for companies that have high exposure in china. for example companies like china, like sk hynix that are producing leading-edge chips in china. they are getting licenses from commerce, they are at the mercy of the u.s. government for those licenses. and washington is sending a very clear signal that should be deployed to steer that production for any kind of leading-edge or sensible technology outside of china. shery: how big of a risk coming

from time when you chips given that they are -- from taiwanese chips given that they are in the middle of tension between the u.s. and china? reva: it is important to recognize we are already in an escalation ladder over taiwan. that can be driven by u.s. actions, chinese actions, taiwanese actions. tsmc of course remains dominant, and that story is not changing anytime soon. even as tsmc is expanding investments in the united states, europe and elsewhere. but taiwan will still be at the epicenter for leading-edge chip production. with that is going to come a lot of geopolitical risk of course, as china works to assert its territorial claims over the taiwan straight. and of course as the u.s. is focused on bolstering its defense supported taiwan, which can always elicit reactions from

beijing. the scenario we have to pay particular attention to is one that was featured in the post-pelosi visit during the military exercises where china was essentially rehearsing a quarantine scenario. we are looking at introduction of sensitive weapons and shipments, that is something that is definitely going to be on the radar for any military planner on any side of this equation. haidi: reva, great to have you as always. the world's biggest iphone factory continued to be subjected to covid recessions. authorities and china have lifted a lockdown in the district where the plant is located but some areas are still required as high risk. emma o'brien joins us now for more. and what is the latest given that we have seen efforts in terms of the closed loop systems to be able to minimize the impact of covid zero on production? we have of course heard from

apple that shipments will be affected. emma: yeah. i mean, the iphone factory run by the taiwanese company foxconn in that central city of jean joe -- jump joe -- will remain under the restrictions it was under for the past week when it was under this area that was locked down. it was interesting how they announced this yesterday. there was much fanfare about the lockdown in the airport area but tucked into the statement were a bunch of high areas. areas that will continue to basically force lockdown-like restrictions at iphone city, as it is known. it is in one of those high-risk areas. it will continue to see production snags, issues with

getting supplies in and out, particularly when you have lockdowns still in place in many parts of guangzhou. they are continuing to run a closed loop at the factory. that means that workers are basically confined to the compound to go to and from their dorms to the production lines. but lockdowns do raise this issue of disrupted supply chains of trucks and trains and other modes of transport not being to operate that way they normally would to bring in the materials needed to make these devices. shery: it is really incredible from somebody looking inside china to see these continued lockdowns after more than two years since the pandemic for started. does this mean that we could see more restrictions, and what has been the reaction on the ground, especially when it comes to the public? emma: we are almost three years

into this. china did have that honeymoon period at the start of the pandemic once the wuhan pandemic -- outbreak was under control. they have been able to kept covid pretty well out. the oncoming of the more transmissible omicron variant has meant it has become pretty impossible to keep covid out of china. but they are still persisting with this covid zero policy and trying to eliminate cases. and yes, we are continuing to see lockdowns. there have been borders from beijing to minimize the disruption of covid zero policies and restrictions but then you get situations like guangzhou where they have been reluctant to impose wider lockdowns. but cases have surged almost sixfold over the past week. with spread admin the community. that is leading to them having to rack up restrictions over the

past day. tomorrow lockdowns and districts there. and much of the city our students. shery: emma o'brien there with the latest on china's covid restrictions. coming up, australian consumers will have to bear more pain last year. that exclusive conversation, next. this is bloomberg. ♪

haidi: national australia bank ceo ross mcewan is expecting further interest rate increases next year as consumers face rising prices. i asked him about his assessment of the australian economy in an exclusive interview. ross: look, the australian economy will remain very strong. we are seeing that coming through in our results with our business customers in pretty good shape. look, we've got low unemployment here. we have an economy that is continuing to grow with exports leading the charge. the issue for us but every other economy go inflation higher than anyone expected and costs going up in the house and businesses. i think australia is in a very

good position. and given that next year we have 195,000 visas for people to come join us in australia and the skills we need, i think we are poised for growth. this is certainly an economy people will look at and say how has australian continued to grow when the rest of the world is going down. haidi: can you give us an idea of how much of an impact that will have on loan demand and costs? ross: this year we think australian will probably grow through 2022. next year it is more likely to be .8% to 1%. so it's coming well off. i think if you look at our other trading partners we may struggle to get to those numbers. from a relative position we are

in good strength but it is going to feel like we are having more difficulties because growth has slowed down. the impact is also on households. households are seeing, if they have a mortgage, interest rates are going up. petrol prices up, energy prices up, food at the supermarket up, everything they are touching is going up. you just have to go to your local cafe and the price of a coffee has gone up $1. so everything is moving. but at this stage people are able to absorb it. it will be more difficult as we head into 2023. we see some wage growth coming through. you are starting to see people get more money in their pockets. but it will not make up for the additional cost they are receiving. cost of increase and all those costs i just talked about. it will feel as though the economy has slowed down. haidi: i am guessing that is

also informing part of the view as to why nab has pulled back compared to some of your peers. is that because you see the excess balance sheet that are deployed elsewhere? what are the better opportunities? ross: we had a very good growth in our mortgage book over the last 12 months. we had $22 billion of growth. and with the city business here in australia it was another $9 billion. at that time i think there was a reasonably good margin. things have changed. it is very much refinancing market rather than a new business market. it is also a market where a lot of competitors are in that market and the margins are getting thinner. so we want to hold onto our good customers and hold onto as much market share as we camp it. but where i have a balance sheet i am better off putting excess

in excess, liquidity into our business market. there are other areas i can get a better return on my balance sheet. shery: coming up next, how trading in asia's markets is shaping up as we see that crypto route deepening. this is bloomberg. ♪

shery: the crypto rout is deepening across asia. we are seeing a freefall in the ftx token. we have heard binance has backed out from the bailout for ftx, saying that issues are beyond their control or ability to help. we are seeing a bit of a rebound with salon and even bitcoin, but still below the $16,000 level. ether is still under pressure. we have seen bitcoin holding up better than other tokens during times of stress, perhaps that is happening now. but it does not change the fact we have seen losses of more than 20% in the past two sessions. haidi: let's bring in a video can preview -- hidalgo sauna --

>> good morning. asian shares have been doing quite strongly so far this month. that has been driven mainly by short covering. people have come up with reasonings such as the possibility like hopes the chinese authorities might change the covid zero policy. if you look up happens in markets, they are rising the most this month which seems to say people are covering the short positions they have made earlier. for instance if they look at the msci index in asia, msci china is the best performer and korea and taiwan are doing quite well. as we know these are markets

that have been battered the most. even on individual stock levels, if you look at japan there is a company that is a manufacturer of one of the key components of many gadgets. they have announced quite small earnings this year. but their share prices have gone up quite sharply. so people think basically this is more about short covering than anything macroeconomic. shery: so i guess there is no respite for those crypto-related shares across asia either, given what is happening with the meltdown right now. i do wonder what your thoughts are on retail investors across asia. because we saw some investors and korea, retail investors in

china, also very active when it came to crypto-related assets and other meme stocks as well. hideyuki: right. yes, we need to pay attention to any forward from the crypto space. having said that, so far, the correlation between asian stocks and cryptocurrencies has been very weak. the assets that have the strongest correlation is actually u.s. shares. asian shares have limited impact for cryptocurrencies earlier this year. so yes, we need to be careful about these fallouts, but at the moment there seems to be fairly limited impact from what is going on in cryptocurrencies. haidi: hideo cassano there. these are some stocks we will be

watching in about five minutes. crypto related stocks in the region could see a move after binance announcing it has backed out of that takeover of the ftx deal and that is having reverberations in price action. coming up in the next hour of daybreak, we get more market strategy with james leung, who sees strict covid curves still weighing on china's economy and its financial markets. the market opens in seoul and tokyo next. this is bloomberg. ♪

shery: we are counting down to asia's major market opens as we watch for fallout from the crypto meltdown anticlines on wall street overnight. of course we have seen already investors digesting the midterm elections but in asia we are watching covid cases in china. haidi: covid cases back to inflation watch as well with the u.s. cpi print now that the midterms by a large coming as a sigh of relief for the democrats who thought the result would be a lot more negative. but we are going to head straight to the open and take a look at these cryptocurrency -linked stocks in tokyo and seoul and see how they perform given we have seen broader risk assets continuing to see those declines. not just across crypto but really it spilling over to broader risk assets and equities. let's get you straight to that market open.

shery: take a look at how the nikkei is opening, down 9/10 of 1%. every sector on the nikkei is in the red. industrials, consumer staples under pressure. the japanese yen holding at the 146 level. it has been steady given the weakness we have already had against the u.s. dollar. the 10 year yield also being watched very closely in japan because we saw bonds rallying after that solid sale of 30 year bonds alleviating concern for demand for the superlong debt in japan. the 10 year yield in treasuries also under pressure right now but still around the 4% level. of course we watch anything to do with perhaps looking ahead to cpi numbers. but also that demand concern given the china covid lockdowns. beijing reporting 95 new local covid cases for november 9 coming out of cctv. renewed lockdowns in different parts of the country as well.

take a look at how korea is coming online right now, because we saw a jump into korean won in the previous session to a two month high on risk appetite. we had lower than expected unemployment rates at 2.8% helping investor sentiment but not so much today. the kospi is also losing .9%. as we continue to watch anything related to crypto shares as well. haidi: certainly the key focus when it comes to the markets for narrative. we are seeing broad downside about .5% lower. we heard from the rba governor really reaffirming that commitment to getting inflation back to the 2% to 3% inflation target even as the outlook suggested they will not get to even the upper part of that target until the latter part of 2024. so we're really seeing the reassessment of where the rate hike goes. want to watch is origin

energies. up 2% after getting that offer from brookfield. we are also watching the aussie dollar. he flat as we see the resumption of a little bit of strength in the greenback. shery: a little bit of strength perhaps for bitcoin right now. a little bit of a mixed picture in crypto assets but this is of course after a huge meltdown in the past four days. bitcoin still below the $16,000 level. solana gaining about 7% at the moment. ftx token in freefall right now down 17%. ether also under pressure. binance had backed out of a bailout for ftx. let's bring in john dawson sure for more on this. perhaps not that surprising given that earlier this week we were concerned about the letter of intent that was really nonbinding. >> exactly.

this is all going so quickly. as of saturday or sunday, ftx was riding high and then all of a sudden there is a potential buyout from binance, and now that is not even happening. but things move quickly and there were reports that there were possible investigations into ftx. binance started to look at the numbers and did not like what they saw and so they decided that this was not for them and now we move on and figure out exactly what will happen with ftx and what the second order ramifications will be in the crypto market from other entities that may be affected by all this. haidi: joanna ossinger there. let's take a look at some of the movers in the meantime. of course the question really remains as to whether this is the crux of an existential crisis for barter -- broader

crypto and the integration for what we see as the mainstream. take a look at some stocks we are seeing move in the early part of the session. we are only about four minutes into the start of trading, but certainly alexa monarchs group are want to watch. the client at the moment, pretty muted when it comes to gml -- pretty muted declines here. down close to 2%. ftx investors have been warned of likely bankruptcy, facing an $8 billion shortfall. binance walking away from the takeover deal. all of this spilling over to that deepening selloff. although we are seeing in terms of cryptocurrency pricing, starting to see a bit of a pullback in asia from that selloff. let's bring in our guest james leung, head of melted asset -- multi-asset at bearings.

when you look at the spillover of the crypto volatility jan just the asset class is this something you are watching for, and is it may be a time to actually pick up on bet evaluations if the selloff is a sentiment issue as opposed to a broader fundamental correlation? james: unfortunately, we do not invest directly in crypto because most of our clients - but we are watching potential spillover of this new asset class. over the longer term i think crypto has a place. given the regulatory issues surrounding this asset class i think it would take a little bit of longer time for broader investors to get accepted. it is not the first time that we see roller coaster rides in this asset class. so i guess the spillover to the

broader markets globally should be a bit less than previous episodes. haidi: taking a list -- a look across broader market, the question as to whether we have seen the bear market rally or a series of bear market and whether valuations are coming down to a point where we could see that trough inequities, where d.c. it? -- in equities, where do you see it? james: the broader direction hinges on the big number cpi tonight. for the last couple of weeks we did see some short covering, pretty strong short covering on a lot of different sectors. including most liked sectors like esg and climate risk. i would guess we have probably seen the worst of selling in

this mini cycle. the point is if the cpi at least stays, there is a chance that the fed might start to pass over it several months and we see the market bottom. valuation wise it is very cheap, especially in asia. unfortunately what we are seeing in terms of earnings results, the latest round has been pretty mixed or actually disappointing. particularly out of china. of top line and bottom line, pretty poor, definitely as a result of the zero covid policy. probably downturn as well as a weak external sector. so it does not look like it is an absolute bottom, but it's something we may try to hit the bottom soon. shery: with authorities doubling

down on covid zero unswervingly, not to mention new lock downs in china, how much can authorities, economic support help you? we saw developers rally because of an extended funding program, but is this enough? james: yeah, recent supportive measures are definitely a start. but we think the property sector will take a long time to heal. the best is perhaps give it another six to 12 months. we will probably see the drag on this sector dissipating a little bit. and then hopefully with the potential of reopening maybe first quarter next year, then we may see some revival of domestic consumption, investment, so on and so forth. so yeah, it's still early to

look at china right now. we are underweight there, but we are looking at potentially sometime early next year to revisit the market. shery: right now, where do you add? james: globally, we saw some big selling in esg sector. in particular, alternative energy. this sector has been holding up quite well until september, when it was down very heavily because of what they are selling. we felt that in the interim and the longer-term attractions still exist in esg and climate risk. and listen to what the leaders are saying in cop27. they are giving ever, ever important reminders and warnings about alternative energy, the importance of it. so we are adding more climate

sectors recently. shery: james leung, good to have you with us. let's now get to vonnie quinn with the first word headlines. vonnie: russia has ordered troops to leave ukraine's city up kherson in a highly symbolic setback for president putin. the russian defense minister called on troops to retreat from the city. it was the first regional capital to fall in the invasion and was among the territories moscow claimed to illegally annex in september. meanwhile, putin is said to be planning to skip g20 next week. sources say the kremlin is seeking to avoid confrontations with other world leaders, with tensions over the invasion of ukraine specter to dominate the summit. foreign minister sergey lavrov will attend the meeting instead. the chinese city of guangzhou has extended covid curbs on the world's biggest iphone factory despite ending a lockdown where the plant is located. his spokesperson for foxconn

says it's guangzhou plant will remain under closed loop, meaning the flow of goods and people will remain curtailed. the city's restrictions have prompted apple to warn it may ship fewer devices than anticipated. national australia bank says that is exciting further rate increases next year with prices continuing to rise. the ceo ross mcewan says cost pressures will increase in 2023, meaning more pain for australian households as the rba raises rates to fight inflation. he said nab has been reaching out to homeowners in a bid to preemptively identify signs of stress in its mortgage book. >> households are seeing, if they do have a mortgage, interest rates going up. they are seeing petrol prices up, energy prices up, food at the supermarket up. everything they are touching is actually going up. at this stage, people are able to absorb it, but that will become more difficult as we head into 2023.

vonnie: global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: still ahead, binance has backed out of its bailout for ftx, citing liquidy issues. we get more on that with the director of financial markets for crypto exchange okx later this hour. first, president biden announcing he plans to run again in 2024, but he will wait until early next year to make it official. we get the details, next. this is bloomberg. ♪

>> no, i don't think there's a lot of respect that china has for russia or putin. i do not think they look at that as a particular alliance. matter of fact, they have been sort of keeping their distance a little bit. shery: president biden also saying he expects to discuss issues including taiwan and trade with china's president xi jinping at the g20 summit in indonesia. for more let's bring in emily wilkins in washington. are there any implications to a narrowly divided government and how washington will deal with china going forward? emily: it is so interesting, because in most cases on most issues, yes, a invited

government will be impacted. but right now you are seeing the parties very much aligned when it comes to china. you see china hawks on the right and the left. there does seem to be a lot of bipartisanship when it comes to how to do with beijing. and you have heard republicans say that if they do wind up controlling one or both chambers of congress, that they really want to focus on that. one of the things that you have heard from kevin mccarthy, the leader of the republican house, is that if they do wind up taking control and are in the majority, they want to look into the origins of covid-19. they have said that they believe that the virus could have come from a lab. that is something that they want to look further into, and something we can further -- look into if they take the house. we cannot say that for sure. it is likely to happen but we probably will not know for maybe another couple days whether or not that will be the case. haidi: emily, at the very least

it is looking a little bit better when it comes to the broader agenda, the policy agenda for the democrats. whether you're talking about economic, social, foreign policy. i thought it was very interesting in terms of what we heard from president biden earlier. what does this tell you about the direction for now, the rest of his term? as we get into 2024 when he said he probably will put his hat in the ring again. emily: this was a really good midterm for a biden. yes, there is a good chance he lost the house and maybe even lost a senate. but the fact is the first midterm for a president is always really difficult. on average, the president in their first term loses about 26 seats in their first election. right now biden has done much better than trump did in his first midterm, much better than obama did. he has momentum and he can use that for a mandate when it comes to policy, for executive action, in saying that the american

people did not fully say no to him and his agenda and he could go forward with that. also in terms up 2024, biden absolutely has momentum now. his approval rating is still low around 42%. that is not really great, but clearly it did not impede his party from having a much better night than they expected to have. the other key thing to really keep in mind is that biden has been talking about doing a 2024 run for awhile. he he said if there is an official announcement it will come early next year. but let's keep in mind that biden has no incentive to say that he is not running again. if you are the leader of anything, you want to say that you are going to be in charge until the last possible minute. so i think everyone will be watching biden very closely even after a potential announcement to see what happens with him and with the rest of the democratic party. if we do see other challengers step up and say i would make a better candidate for 2024. haidi: like donald trump, will he run?

emily: at this point, all signs seem to be pointing to yes, but it is a big question after last night. republicans were expected to have a fantastic night. they did not. some within the party are pointing the finger at trump. saying that what he brought to the party, the 2020 election denial, harsh rhetoric, that is not what the republican party needs right now, but we will have to see. trump initially said prior to the election that he would be making a statement from mar-a-lago on november 15. a lot of us anticipate that that is when he throws his hat into the ring. but there might be some recalculation going on right now. he did post on his social media platform saying that republicans did not have a great night, but he thought that he had a pretty good night. so, stick around, as he likes to say. we have to watch and see what happens. shery: emily wilkins with the midterms and what we can expect

in 2024. and of course the reit -- the reason the results were surprising is because republicans did not do as well as they had expected, especially when top of mind for voters is price pressures and red-hot u.s. inflation perhaps expected to have cooled off a few degrees in october, but still not enough for the fed to back away from steep rate hikes. kathleen hays is here with the latest. what can we expect from these numbers and how the fed will react? kathleen: let's start with the numbers because yes, there might be some improvement, but when you are at 40 year highs i guess you go from january up 1980 to september of 1980. but let's look at the numbers. on the monthly numbers, headline cpi is expect it to go up from -- to .6%. inflation used to rise .2 a month. that is mostly gas prices.

core cpi on a monthly basis drops .1. used car prices are coming down. supply demand imbalance for goods is getting a little better. if you look at year-over-year numbers, they are going to be very high. i would love to break it down a little bit like this chart does. you can see the goods that takes out food and energy up 1.4, food, energy, both under 2%. it's core services, it's all those things, all the services you purchase when you go on an airplane or go to a restaurant. that is where prices are still high and that is the concern about inflation getting persistent and more entrenched. bottom line, what we are going to see is an inflation report that shows inflation still too high. there is a concern if you let inflation expectations -- he made a powerful statement

today about not backing down, knowing you have to get to do percent. let's listen to what he had to say. >> this lower return to normal devils of inflation could threaten inflation expectations. if there is one thing we learned in the 1970's it is the fed cannot let inflation fester. if we back off, inflation comes even faster and requires even more restraint. kathleen: charlie evans, who will be stepping down -- you have to requite -- retire when you are safety five. he said he can see the benefit of slowing the pace of the hikes if not very soon, soon. and ultimately he thinks if you react to every stronger than expected inflation report you are going to get the funds rate to a point where it is very high. you are seeing the outlines of a december debate now. 50 will still be big. do you need the 75 basis point

hike? this number for this near-term decision could play a big role. haidi: kathleen hays there with the latest as we get into really the drumroll ahead of the u.s. cpi print. you can get a round up of the stories you need to delve in today's edition of daybreak. you can find that at dayb on your terminals. all the focus on binance, ftx, and crypto. it is also on the bloomberg anywhere at and you can customize that. this is bloomberg. ♪ as americans, there's one thing we can all agree on. the promise of our constitution and the hope that liberty and justice is for all people. but here's the truth. attacks on our constitutional rights, yours and mine are greater than they've ever been. the right for all to vote. reproductive rights.

the rights of immigrant families. the right to equal justice for black, brown and lgbtq+ folks. the time to act to protect our rights is now. that's why i'm hoping you'll join me today in supporting the american civil liberties union. it's easy to make a difference. just call or go online now and become an aclu guardian of liberty. all it takes is just $19 a month. only $0.63 a day. your monthly support will make you part of the movement to protect the rights of all people, including the fundamental right to vote. states are passing laws that would suppress the right to vote. we are going backwards. but the aclu can't do this important work without the support of people like you. you can help ensure liberty and justice for all and make sure that every vote is counted. so please call the aclu now or go to my aclu.org and join us. when you use your credit card, you'll receive this special

we the people t-shirt and much more. to show you're a part of the movement to protect the rights guaranteed to all of us by the us constitution. we protect everyone's rights, the freedom of religion, the freedom of expression, racial justice, lgbtq rights, the rights of the disabled. we are here for everyone. it is more important than ever to take a stand. so please join us today. because we the people means all the people, including you. so call now or go online to my aclu.org to become a guardian of liberty. haidi: the latest on the ftc scandal that we are seeing reverberating across markets. the u.s. justice department is

looking into the ftx turmoil. the justice department looking into everything going on when it comes to it. that's according to a person familiar with the matter. officials from the justice department working with the securities and exchange commission and attorneys are probing the matter. representatives have declined to comment. representatives for ftx did not immediately return request for comment either. we did hear this story first reported by the wall street journal. all of this of course adding to the mounting legal headaches in washington when it comes to this crypto empire. we have seen the sec also investigating whether -- regulators also looking into relationships with other parts of his businesses. shery: we are seeing a crypto meltdown in the new york trading

session. the ftx token continuing its freefall. not so much for the others like bitcoin, they are seeing a little rebound. but suffice it to say bitcoin fell below the 60 and thousand dollar level for the first time since -- below the $16,000 for the first time since 2020. still more than 20% losses for bitcoin in the past two sessions alone. and you can see the repercussions right there. haidi: taking a tumble in asia for asian companies related to cryptos. 6.4% lower. we're seeing quite a bit of downturn when it comes to these crypto-related stocks trading in korea as well. more to come. th 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.

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annabelle: --

vonnie: this is "bloomberg daybreak: asia." president joe biden says he still was to seek reelection in 2024 it is likely to make it official or early next year. this is after democrats staved off the worst case scenario congressional losses of elections. biden has its final decision will depend upon his health and discussions with family. pres. biden: our intention is to run again. that has been our intention regardless of what the outcome of the selected was. vonnie: the new york fed president has long-run inflation expectations are still stable despite the recent price surge. he's raised delivering low and stable inflation is the fed's most important job. the richmond fed president says the central bank will do what it takes to get back to its 2% inflation target. he added the fed cannot back down over slow down fears and let inflation investor. north korea has fired a short range ballistic missile toward water off its east coast adding to speculation it may be preparing for its first nuclear

test in five years. officials say the missile flew 250 kilometers and apparently landed outside of japan's exclusive economic zone. pyongyang has stepping up its lunches, firing at least 23 missiles last week. the u.s. and china and started unofficial conversations on climate related issues at the cop 27 summit in egypt. turn up bs, omnipoint said he met with his u.s. counterpart for unofficial talks. the chinese officials said the door is always open for a joint session to promote cop 27 ideals. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. ♪ haidi: cofounder jesse powell says his company does not have any exposure to ftx assets. in an interview powell discussed the impending collapse of the

crypto exchange, and what it could mean for the broader crypto market. >> what might remain of ftx, which from the outside looks like a pretty big crater, and i think they took a look at it and decided this was a hole to big to fill with too much radioactive regulatory scrutiny around it, which looks like it might've been a pretty big headache to deal with. right now it looks like ftx might be headed into a bankruptcy process, the likes of which we have seen frequently recently, unfortunately, and for some like the clients of voyager you might be aware ftx was appointed manager to pay out the voyager process required those accounts, so it is history repeating itself. we saw another situation back in 2014 when another trustee and deposited funds into mount ga

wks, which got hacked, and clients got a double penalty. still waiting 10 years later to be paid out. over the does not take that long. another blackeye on the industry, and it will be tough times for consumers and clients of that exchange. >> i ask brian armstrong the same thing i'm going to ask you. would kraken be interested in buying stx? >> we have already got quite a bit of the same infrastructure, there is redundancy between exchanges, so maybe we are talking about user accounts, subsidiaries or specific days we would be interesting -- interested in. i do not think it will be a value or any where close to what the whole seems to be. the process will likely going to bankruptcy. there will be an organized

option for these assets. at this point i am not sure whether they would be allowed to sell these assets, which might belong to creditors. >> has ftx approached kraken? >> we have spoken to them about this, we are in the loop and looking to get more information at this point. >> does kraken have any exposure to ftx or alameda? if so, how much? >> we do not. we steered clear of the ftx token. we do not f tradett -- trade ftt on the spot trade. we are conservative business in terms of our operations. do not operate a hedge fund on the side. there are no strange relationships like that. we are not lending out client's funds and they do not know about it.

so we are a relatively conservative business. haidi: kraken co-founder. let's discuss this with the director of financial markets at a crypto exchange. great to have you with us particularly during such an insert -- such an uncertain time . we have been using the phrase existential crisis not just for ftx but in terms of broader confidence across the crypto world. >> i agree. obviously one of the biggest crypto exchange is in the world, i think in some way it will undermine confidence of the crypto industry as a whole in general. haidi: what needs to happen now to reclaim his, confidence? >> i think the best way to do is all of the crypto exchanges, especially when operating in the

centralized business model need to substantially increase their transparency. the way that it starts is willing to close proof of reserve via market tree. other industry participants will follow and try their best to increase confidence by enhancing transparency. shery: we are seeing a rebound when it comes to crypto assets. is this buying, and what are the levels -- dip buying, and what are the levels you are watching at this point? >> the market is at a relative bottom. related to ftx, so i think it might be a panic buying moment. shery: the u.s. justice, sec, all regulators to begin to figure out what is going on with

ftx and the broader industry as well. our regulations going to help in the long term in this industry? how good -- how big could the pain be in the meantime? >> the regulation is always helpful. it will be substantially beneficial to the industry as a whole based on whatever history tells us. i think right now in the crypto industry, i would like to say a majority institutional player is licking their wounds. clean up their balance sheets. for an exchange like us, we are in the process to enhance transparency to our users. haidi: looking at more of a global foot. does this kind of development in market volatility change that

strategy or make it more difficult to find investors to make that kind of progress? >> obviously one of the major exchanges as well, so what we need to do right now as a majority is to regain confidence for those representing the company and the industry to regain confidence for the users. what we are going to do is working similarly but adopting a standard like a regulated institution to enhance transparency and disclose a lot more information to our user into our investor. shery: before we let you go, as an industry player when you were looking at this drama unfold between ftx and finance -- b inanace, some have called the move a masterful move.

what do you make of it? >> i am sorry? shery: a very good move in a game of chess by some. >> i think both of them it should be an unfortunate incident. i do not think even binance from my standing, they do not think a selloff will substantially crash exchanges. it would be a surprise for b inance as well, ftx itself. it would be a surprise to the major players in the industry. shery: good to have you with us. we have 20 more to come -- plenty more to come. this is bloomberg.

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haidi: covid cases in beijing have jumped at the highest level in more than five months. officials are alarmed by infections found outside of quarantine. let's discuss this with our opinion economist was has turn's entire market is playing a guessing game on whether the

country will reopen. it is weather but also when, it is about getting your bets aligned with policy timing and policy priorities. in the meantime it is getting to the point where the cost of maintaining covid zero is mounting. when you look at the various factors, do you see indicators that would be a prelude to a reopening? >> i think seeing is believing. we need to see action from the chinese government. there are two things that i think we need to watch. first of all is the vaccination rate, the vaccination drive for the elderly. we do see a pickup in the vaccination, and even though the government has not been doing anything for many months, another thing i think is cute to watch is sequential -- guanzhou has over 3000 cases right now. just like shanghai right before

the spring lockdown. the question is will china follow suit and do the same thing to that city as it did as shanghai? it is a sign that china is easing a bit and it is not willing to do another shanghai lockdown. shery: now reporting the latest covid cases that2555 -- cases at 2555. we have seen perennial death concerns when it comes to local governments, the economy. how are these new lockdown to the restrictions going to play into the debt picture for the country? >> it is not looking good. if you look across the chinese sectors, only the government debt looks fairly reasonable at just under 50% of national gdp. everywhere else, corporate debt,

which includes off she balance financing are over 150%. in the last two years central and local governments have been running debt on their balance sheets to finance covid zero, but it is not sustainable. in 2022 they already used fiscal savings. come 2023, where is that money going to come from? it will have to raise the debt ceiling. fiscally it is getting very expensive for china. haidi: especially for a country and government prioritizing deleveraging even just a couple of years ago. with that in mind will they be forced to reopen? you make the argument a reopening does not mean a reopening all at once. it does not have to be chaotic. >> in the past two years china has been equating living with the virus with the line flat. you do not have to reopen the whole country. you can reopen big cities that

are better equipped. guangzhou is a big test case. let surrounding provinces help metropolitan areas if they are sort on personnel staff, and they have been that way. they can still try to maintain some order while opening the economy a little bit. shery: our bloomberg opinion columnist with the latest on the covid zero strategy. investors trading on a guessing game when it comes to the reopening in china. developers in the country already rallied on wednesday with investors betting that the bottom is in after more than one year of declines. this as we head toward more lockdowns, new restrictions. let's bring in the head of greater china responsible for business acquisition in the region. great to have you with us,

claire. tell us what your sector is seeing, because we saw positive sentiment come through early in the week on more financing support programs being continued across china. at the same time now, we have renewed restrictions due to the covid zero strategy. >> it is certainly a challenging time in the market. there is some volatility, and it is possible that continue, but on the ground what we are seeing is continued strong signs around the fundamentals. you cannot control the cycle you are in, but over the long-term we are finding compelling opportunity. china is only as urbanized as some of the markets in the united states were in 1949. those current states are pretty investable. shery: where are the opportunities? we thought it was not just about covid zero and the dampening of demand and sentiment across china, but also the fact that a

lot of people were shopping online, so brick-and-mortar stores had to close down. >> it has been surprisingly resilient. across real estate classes we are seeing opportunity. from our perspective, we are seeing opportunity to come into areas like life science, logistics, real estate, and brick-and-mortar retail. we are seeing that play out in real strategies. haidi: how much of the outlook really depends on the reopening though? how much disruption are you actually seeing from covid zero not just from a consumer sentiment but that sheer difficulty of people in a lot of areas being able to get around? >> we have seen folks coming back at surprising volumes. if we look at specific events,

for example, during the launch of the new iphone or most recently as we are approaching singles' day. folks are back in full force, even through various lockdowns. we have found that office daily occupancy levels have been quite resilient. we cannot say exactly when reopening will happen or what this next series of stages will look like, but folks are back and finding ways to continue with their daily lives. haidi: is there an opportunity to invest in some of the themes and requirements that tenants will have of these buildings as we get toward a reopening of china? >> we are seeing specific opportunities, areas to focus around things like sustainability and indoor air quality, for example. very top of mind as folks focus

on health and wellness, but if we look at asset classes, life science and lab space, we have seen a tremendous increase in demand and interest from the capital markets perspective as well. we are seeing those areas of specific opportunity. as folks are coming back from a period of lockdown, we are seeing a real interest in people getting back and finding a sense of community, social interaction, so huge increase in the activity today, and we think that will increase as we approach the end of the year and certainly big holidays like singles' day. haidi: talk to me about your expectations for singles' day. in my mind it is such an online festival, but you are saying it has gone beyond online. what if it rains you are seeing?

>> online is an enormous holiday. $85 billion in gross merchandise value, and it has grown over 1,000,000% since it launch as a holiday. what we are seeing is this active transition to off-line as omni-channel has become an important part of brand recognition. we are seeing a focus on social sharing online as well as off-line through in person promotion related to geolocation and folks coming into the store. focus on duration, cross promotion after wechat and other digital channels. the third is a major theme around instability whether it is online or off-line. three quarters are gen z work millennial -- or millennial. sustainability is a big issue for them.

haidi: great to have you with us. be sure to tune into bloomberg radio and get in-depth analysis from the daybreak team. we are broadcasting live from our studio in hong kong. listening to the at the at, radio plus or bloomberg radio.com. more ahead. this is bloomberg. ♪

shery: here is a check of the latest business flash headlines. goldman's top tier it is said to see the biggest infusion of partners. the bank has tapped 80 employees to become partner, meaning this year's last is 33% bigger than last year's. it is expected to be the most diverse group elevated to goldman's top rank. the fcs fiasco as ensnared tiger global, softbank and others. a company is facing an existential threat after rival binance called off its takeover. investors of the once highflying crypto exchange are said to lose all or most of their investments. massive job cuts are said to

begin as facebook's parent platform meta says it will cut 11,000 jobs, 13% reduction in staff, the first major rounds of layoffs in meta's history. they are cutting costs halloween several quarters have disappointed -- disappointing earnings. elon musk has had to quell concerns the social media platforms may not be a safe place where brand marketing under his leadership. in a call that was broadcast live on twitter must acknowledge that hate speech cannot be next to ads. musk took the company private on october 27. haidi: some of the stocks watching ahead of the opening in hong kong and china in the next half-hour, semi conductor shares in focus. pegatron, smic among those

reporting earnings. we continue to focus on hong kong given that it is subjected to covid restrictions in chengzhou. deepening crisis on china's onshore bond market, and continuing to watch crypto related chairs after binance backed out of the fdx deal. we have been watching the selloff across the korean and japan crypto names today. shery: coming up, we speak to the executive president of digit or -- digital asset management. this is bloomberg. ♪

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