>> a very good morning and welcome to "bloomberg daybreak: australia." we are in singapore. >> i am alongside haidi. top stories this hour. china taking major steps to save a struggling property sector and relax covid controls. the strongest single get that xi jinping is focused on rescuing the economy. >> this policy shift comes ahead of his meeting with biden and biden says he is coming in stronger after democrats retained senate control. >> users facing a dim picture of their ftx deposits. >> major dynamic in affects. -- in fx. this is a confluence -- we keep

calling it a perfect storm, what we are watching as we head into the new economy forum, the rate crunch. the slowdown in china. message news regarding property sector and another wave of covid. >> there is a reason there is so much uncertainty in markets especially with the crypto meltdown. have the issues you mentioned and we have so many important conversations to discuss especially when it comes to the tech supremacy battle between the u.s. and china. we will talk to the likes of dr. henry because under, katherine tai will be with us here in singapore. we have a lot for you. >> we keep talking about the idea of an existential crisis. crypto, is it an asset class on the brink of discovering his future? some shying away from it becoming a mainstream asset. given the volatility. >> and we are seeing more

regulations towards these exchanges. the scrutiny -- we have seen ed from the u.s. -- we have seen it from the u.s. sec. we are talking about congress and the senate being held by the democrats. historic midterm elections. how that will shape up the financial world not to mention we have seen big changes in china with sweeping property support packages. >> that extraordinary result in the midterms. president biden heading into talks with president xi with a renewed sense of confidence knowing he has more support then democrats had been banking on going into this. take a look at some of the joint challenges. supply chains, the crisis continues. climate change continuing to be the question as to whether the current energy crunch is pushing back some of these efforts when it comes to the energy transition. inflation and the ongoing war in

ukraine. on all of those notes impacting the trading week. we are seeing the aussie dollar -- we are seeing an interesting situation where the funding pressure when it comes to the u.s. dollar is starting to transfer to a positive element for the aussie dollar. we see the u.s. starting a week on the back foot. $.67 is where we are seeing trading for the aussie. we are seeing a pretty good open when it comes to equities. we really get a little upside when it comes to the package of property rescue measures from china and that is boosting the confidence when it comes to aussie assets. >> we are talking about a 60 point playbook when it comes to rescuing real estate sector and china not to mention easing covid restrictions playing into the markets which is why we saw a huge jump in wti prices last

week. we are talking about everything and commodities from oil to soybeans and precious metals gaining ground and the s&p 500, the best week since june. and this, given we also saw the extension of the rally from using cpi numbers but interesting when we have the university of michigan preliminary expectations, they were both high in terms of short and long run expectations. for more on today's top stories let's bring in bloomberg's su keenan, and the managing editor for asia global business, emma o'brien. su, that me start with you and ask you about what is happening in the crypto world given we have seen this incredible meltdown and the drama continuing. su: a lot of developments since the stunning collapse of sam bankman-fried's ftx empire last week. one of the world's two biggest

crypto exchange is is no more. ftx and related entities were placed in bankruptcy. and customers were not able to withdraw funds and are unlikely to recover much of their deposits. we have learned from sources able to review the balance sheet of the ftx a day before its bankruptcy filing that there were nearly 900 -- that is an enormous gap. most of biggest holdings include ftd. those are lesser-known holdings and they plunged since the collapse and bankruptcy filings. one source called the balance sheet incomplete and granular. bloomberg learned that sam bankman-fried was interviewed by police and the bahamas. at this point we understand it was just an interview and no criminal probe but it could go in that direction. were looking at sam bankman-fried's fortune which plummeted in one day last week.

at one point valued at over $26 billion and it is now believed he is well below the $1 billion market if not in the hole. his company is believed to be billions of dollars in the hole. if you look at how crypto has traded in the meantime, there was an initial rebound from a fall last week but we have seen a lot of crypto assets fall in recent hours. bitcoin trading above the 16,000 mark. it had fallen as low as the mid-15,000 level. there are questions as to whether the bitcoin mania is over. some say it has been a tough year for bitcoin. you had bitcoin winter and the tera luna collapse and the scandals with celsius and three arrows, the hedge fund invested in crypto and now there are questions as to whether this has permanently damaged the prospects of being included in mainstream portfolios. crypto down more than 16% so far this year and this week will be

important to see what other funds revealing exposure to crypto assets that perhaps could not be taken off the ftx exchange and whether this will be written down. we know sequoia, big initial investor immediately wrote off it's almost quarter of a billion dollar investment in ftx. haidi: huge developments out of china. let's start with the virus. as we see cases in the country hitting a six-month high, we are seeing a significant refinement of policies. >> you are seeing a loosening even though officials were very quick to rub off any descriptions -- rebuff any descriptions as such over the weekend as the change as start to be baked in. there are refinements of the covid zero policy. they are still leaving china with the most restrictive covid

approach in the world. they are still doing lockdowns. they are still doing mass testing. there is more refinement and sense brought into it. it will remain to be seen with these numbers surging, the national number over 14,000 cases over the weekend not big globally but huge for china and it remains to be seen whether we do see a more loose approach in practice or whether it leaves officials on the ground in a bind and having to revert to some of the more tough measures of the past given a still do very much have this mandate to bring cases back to 02 squash outbreaks. shery: we just although property developers rallying and we may see more of that market enthusiasm given we are now seeing a huge package, 16 point playbook to rescue the real estate space. >> that is right. it is basically a combination of

loans and easier funding for the banks and the lenders themselves ranging from support for them when they have incomplete projects which has been a huge issue in china, completing apartment blocks and projects getting them over the line as well as giving them support to be able to ease lending and mortgage requirements to people to stoke demand and that market. a 16 point plan to really try to bolster and bring out what has been a very big drag on the economy in china this year. shery: how does this all set us up for the first in person summit between president xi jinping and president biden? >> we were talking about the midterms and biden getting a boost out of that, that of course is true although the house is yet to be decided. one thing to remember in terms of washington is a tough line towards china is something that

both parties in congress and generally agree on and the second point is as we have seen over the past more than 18 months, which biden and xi have talked remotely but never in person, is that biden and this administration are taking a very tough line towards china. and notably on taiwan but other -- but also on other issues like semiconductors. there is often talk about meeting having high-stakes and in this case that is certainly true what the u.s. side has been saying is do not count on any big announcements out of this so they have been playing down expectations for any kind of breakthrough. and what really is a sort of situation where increasingly other countries are fearing that the u.s. and china are asking

them to pick sides between the world's two biggest economies which carries a lot of risks both for the u.s. and china and for countries that are sort of forced to navigate between the two. haidi: the broader global economy -- you hear from the imf talking about the idea of the existing fragility could be pushed over the by the fracturing of these economies. in the lead up to these meetings the groundwork has been done but is their low hanging fruit? how do we manage expectations? >> there does not seem to be anything obvious at least from the u.s. side as we have heard in washington. i mean, there could be some using of trade tensions perhaps. but if you look at what has been done, where would either side

back off now? that is not very evident. for example, one of the issues that has caused this taking sides problem is the u.s. trying to prevent china from getting access to chipmaking technology or high end chipmaking technology. not all of these companies are in the u.s., on the contrary, they are obviously in taiwan and also in europe. these are things where those countries where those governments will be watching closely for any, any signs of what you were just talking about. haidi: we will be watching closely indeed. tony, su, and emma on our top stories. let's get over to vonnie quinn. >> russia and the u.s. have failed to agree on language for

a joint statement at the east asia summit in koba -- in cambodia. lavrov says the u.s. and its partners as -- insist on using unacceptable language on ukraine which moscow refuses to describe as a war. it cast doubt on any consensus being reached at the g 20 in indonesia. >> this is the economic forum. on the particular paragraphs related to war, there may be no agreement but we will still try. >> an explosion in istanbul tourist district killed six and wounded 81 with turkish officials saying they suspect and a -- they suspect a terrorist attack. the turkish government ban ned broadcast showing the blast. u.s. house speaker nancy pelosi has signaled the democrats will

seek to extend the federal debt ceiling avoiding a potential fight with republicans she says could threaten the credit rating of the country. this comes during the lame-duck session of the congress. republicans look set to take a narrow majority in the house while democrats retain control of the senate. flash floods in malaysia forced hundreds of people into evacuation centers over the weekend. disrupting campaigning for next saturday's general election. the emergency has barred renewed criticism of the government's decision to call an election. forecasters expect heavy rain to continue for most of this next week. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery? shery: still ahead, what is next for cryptocurrencies amid the fallout from the collapse of ftx. caroline boler writes us next. haidi: up next, we are talking

about strategy with the ubs. find out what they think about how the u.k. and the euro soon is doing and ask the euro zone is doing and if they are heading for a recession. this is bloomberg. ♪

shery: let's take a look at the week ahead. we will be getting inflation prints across asia and europe. the u.k.'s on wednesday

before the budget release and japan's number on friday. on tuesday we get the monthly data dump. we are also waiting on key figures from the u.s. with producer price index coming out on tuesday followed by the initial jobless on thursday. also on thursday rate decisions from indonesia and the philippines and the philippine central bank already flagging a 75 basis point hike to match the fed. haidi: and we are covering the big events and plenty of them. president biden meeting with china's xi jinping in bali on monday on the sidelines of the g20 summit. the first face-to-face meeting of the late -- of the leaders. biden also sees the opening -- later in the week bangkok hosting the apec summit. all three events focused on rising inflation, potential recession risks, food and energy

security. and don't forget about earnings. we are watching tencent, alibaba. reporting quarterly financials this week. many consumers are relying on credit cards and savings to keep up with inflation showing few signs of slowing. and that is your week ahead briefing for this week. investors will be watching the key leaders meeting between xi and biden. shery: our next guest is cautious on china. joining us now is xi qiao, the financial advisor at ubs. good to have you back. does the fact that we are now finally getting the sweeping package to say but the real estate sector give you more optimism about china? xi qiao: it is a positive note. but we are still very cautious on china at this point especially where president xi's current third term may lead

investors to price in a greater continuation of the zero covid strategy, less support for the private sector and we still have a lot to watch on any type of progress of the u.s. and china tensions. shery: when you are being more cautious, how do you stay defensive? xi qiao: if you are already invested in china or any type of chinese equities, it would be a good time to find opportunities to rotate to -- and to diversify. we 100% prefer value to growth at this point and not just focusing on china but other parts of the world. we especially like the u.s., we like consumer staples like energy and health care. and energy is still relatively cheap compared to oil.

there is still room to run their especially with rates going up, maybe slower, we still feel rates are going to continue to go up until probably the middle of next year. haidi: what are your assumptions when it comes to where the u.s. dollar goes? we started with a tone of weakness this week and we have seen quite a bit of repricing. does that change your views? xi qiao: the u.s. dollar has been very strong but we want to focus still on equity markets and maybe getting into some investment grade fixed income and into other areas instead of currency at this point for our investors because it will be a little more predict about and if you are a longer term investor, you can stay in the markets a little longer and a price -- the rates going up is good for cash and investment grade bonds. we are getting more into stable

assets. and looking at the longer-term horizon into the equity markets could be a good return. haidi: how do you feel about tech in the medium and perhaps the long-term? i know it is one of your least preferred picks. how much would valuations have to come down before you see an opportunity? xi qiao: tech is a tricky area. it is hard for a lot of investors who are invested in tech to accept valuations will not go back to where they were. especially because we are going to have this lag impact with all that has happened with rates and a slower economy and slower earnings. technology, we still feel the valuation on technology is still overstretched. and you are going to get corporate profit that will come

down with risk to i.t. and enterprise spending and all of that are the headwinds for technology. i think it will have to come down a little bit more. until rates can stabilize and the hiking rates can slow down. maybe next year would be a better time for tech. shery: i was going to ask given the right situation right now but at the same time we have seen treasury yields fall and the resumption of the rally continues. what is your outlook for next year when you expect that to stabilize a little bit? xi qiao: i think it really depends on how willing the fed is to slow down the rate hikes. and that of course we'll go back to inflation. we are still far from the inflation target of 2% that the fed has for inflation. we are at about 7.7 percent. a lot depends on the inflation numbers and if the jobs market

cools down. i think without said the fed is going to continue to hike rates but it probably will become slower and it probably will stabilize towards the middle of next year. haidi: goes back to the timing of the pivot. always great to chat with you. much more to come here on "bloomberg daybreak: australia." this is bloomberg. ♪

shery: here is a quick check of the latest headlines. alibaba has decided not to disclose full sales results for the first time. analysts had predicted that the figure would suffer. alibaba says gross merchandise valley was in line with last year's performance despite the covid related impact. sales last year reached $76.1

billion. haidi: softbank's ceo says he will no longer speak at the quarterly conference that he has led for decades. it posted a loss amid plunging starter valuations. during the latest earnings briefings he says he wants to focus on ship designing going public. -- ship designing going public. >> we will have to be more selective in the vision fund. shery: we have plenty more to come live from singapore, the lion city on daybreak australia. stay tuned. 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.

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measures on property encoded controls. the strongest single yet that the president is turning his attention to rescuing the economy. this will likely aid the growth outlook for china. authorities in the bahamas are investigating the potential criminal misconduct in the collapse of a crypto exchange. there is an ongoing probe in the u.s. as well. some firms have been listed in bankruptcy filings. the g20 has raised billions of dollars for a global pandemic health fund to avoid a repeat of the covid-19 outbreak.

sri lanka is seeking approval from the imf for its proposed bailout loan by december. talks will begin on thursday. they hope this will reflect a refreshed line of funding. 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. haidi: the president meeting in china with the first face-to-face meeting of his presidency. shery: we are seeing perhaps more upside for the chinese

markets. we see why this summit is so crucial. >> there is no silver bullet in this relationship. having a meeting of this sort is critical. you cannot confront the challenges today, whether it is climate or national security, without these two leaders engaging with each other. these are the two leaders of the most important economies in the world. >> this is the first superpower summit in cold war version two. is that overly dramatic or accurate? >> it sounds a little bit overdramatic. but not far off the work -- mark.

this is the worst time in this relationship in decades. this will not happen overnight. it is long overdue. >> what would be a success coming out of this meeting? >> if both sides can calm the waters and declare we have differences but we are going to work on them. if each side could acknowledge the need for resuming trade dialogue. if they can work together. if they can accept the need to recognize where they have material differences. >> do you think they will? >> i hope they do.

but hope is not a policy. >> they are both emboldened by political consolidation. they are both coming here stronger leaders than they were. >> and they both have a history of working together in the past. it starts with them leading to more action. we are talking about critical issues to the world economy. trade at how we strengthen trade removals. the digital economy. talent development. these are issues we are addressing. they will not happen if china and the u.s. are not at the table talking to each other. shery: we will be live for the

g20 summit. catch are very important conversations lined up for the next few hours. haidi: no shortage of brilliant conversations this week. it is getting underway this week. you can watch the full event on the terminal. we are seeing these moves. the aussie dollar is the biggest beneficiary. we continue to see this focus after we saw the dollar index. shery: it is really interesting

to see what the japanese yen is doing. you mentioned the dollar weakness. we had seen that risk on sentiments. we will continue to see where this leads us at a time when the offshore yuan is holding at that level. so much talk about china including a sweeping deal. and easing covert restrictions. haidi: let's bring in our chief correspondent for asia. he is with us in sydney. is there a reframing going on in terms of dollar strength and what we see as the repricing? was the yuan in frame as well if this new package?

>> there has most certain fleet than the feeling that marcus got what they have been waiting for in a lot of ways. looking at the china pivot toward policies that might help out particular parts of the economy. and the broader economy. with the covid policies. and also what everybody has been hoping for with the fed. that they would be less hawkish. with both of those there are risks. they remain very concerned about inflation. they are willing to hike rates faster.

and to higher levels that many might cope. then you have china which has rolled out property rescue measures. 60 measures that are supposed to help the property sector. the difficulty is that each time they roll out these measures, some of them they are may not work. there is also the underlying concern that china has to deal with a property bubble that has been hanging over the economy for many years. they want to deflate that. they keep on fine-tuning how rapidly they want to do that because of real-world, dashed obligations. markets have gone from being a little bit too depressed in the lead up to the end of last week

to being a little bit too euphoric. shery: how much will markets be paying attention to what is happening between biden and xi? >> that has to be another extremely important focus. the ongoing tensions between the u.s. and china over things like chips trade, taiwan, the war in ukraine which china has been more a backer of russia than anything else. that is obviously at cross purposes with what the u.s. has been doing. you have all of those particular issues. and then you have the tone. what is the tone going to be.

we are now in a world where it is zero-sum. you would like to see for the sake of what is still a pretty fragile world economy at least some signs that the two can work to gather and keep communication lines open. not be firing shots across the bow the whole time. shery: telling us about the fragile economy and of course part of that is what is happening in the crypto world. customers of ftx facing dimming chances of recovering their assets. this at a time where we are seeing bitcoin recoup a little bit of those losses but not much. haidi: there is a big question on whether they can recoup the

confidence of mainstream investors. perhaps it is gone beyond the pale. we were talking about the correlation with mainstream assets. but that was a long time ago. we will get some more insight. some views on the upcoming -- ongoing crypto crisis.

♪ >> a lot of people have prepared this to lehman brothers. i would compare it to enron. >> hopefully it some legitimacy. >> these exchanges are not allowing withdraws or distributions. that will put a major dent in investor trust. >> we are watching closely. shery: reacting to the ftx bankruptcy some -- filing.

these gains are nothing to really talk about. this coming at a time when we are hearing from sources that there are interviews going on. pressure is mounting. haidi: investors are likely to face a long, painful protest. -- process. what does this feel like to you? >> good morning. it feels to me like mf global. we are seeing similar situations play out.

it seems like it was a strategic decision. not a long-term decision. that they made. to prop up their trading desk. the ripples we are seeing go through the market, we talked about that. we will see more of those ripples play out across the industry. shery: it seems like greater regulation is the goal at this point. will this be better? >> 100%. i think that is very much the view across the industry. there was a lot they came out the other side when they came to investor protection.

particularly those coming from traditional finance into cryptocurrency. we have been agitating vocally for increased consumer protections. i think that is the next step. we will be echoing that. there are a couple of points. what we need to regulate is behavior rather than technology. those are not part of the discussion. instead it is the behavior of the ftx team. that is where the regulation needs to come into play. the european union already has regulations set up to prevent

this kind of thing from happening. we heard from international regulators on this very topic. around the need to regulate on risk and consumer protection. to get back to the basics. shery: when can we see those regulations actually play out in the real world? until that happens, is the writing on the wall that we will not see as much institutional investor optimism about this asset class and eventually this will not really go mainstream? >> i would not necessarily agree with that opinion. even for us as an exchange year in australia, we have seen certain activity.

those who operate to the highest possible standards have been doing that with the platform. you want to see some exchanges now under threat move into the good actors. i don't think this is the death knell for the industry. i don't think this will push overall interests. instead there will be far greater scrutiny. that will not be an issue. shery: who is doing it well in terms of really upping the regulatory framework? given that this is such a global asset, what does it mean when it comes to international cooperation? >> i think that is a good point.

the general consensus is they will need to be greater international collaboration. there is a consistent message that has,. we are expecting to see that play out far more. to try to push forward on these best practices. the u.s. is the biggest market we are talking about. you look at those partners and you say they are trying to operate to their highest standards. to try to urge others to do so. this is common from an investor point of view.

they are not asking questions about all of these exchanges. they are looking at some of them and saying why do you not have a headquarters we can talk to? where you regulated from? people are asking those questions. perhaps earlier they were not applying that same degree of due diligence. shery: good to have you back. haidi: you can customize those settings. this is bloomberg. ♪

shery: blackrock has postponed the launch of its china bond etf. there is the risk of political backlash. shery: there is a report that he

is bidding for an english premier league club. the current owner is willing to sell for 4 million pounds or $4.7 billion. haidi: the new black panther movie tops the american box office. it beat estimates. women over the age of 25 account for about a third of the revenue. it is a big boost for disney. shery: i am so excited. i cannot wait to watch that. haidi: it is a very busy week. these are the stocks we are watching. rio tinto in focus.

these gains proved to be quite fragile. shery: they missed estimates. coming up in the next hour, china has unveiled its most sweeping rescue package. we will have more on that shortly. haidi: a scholarship program to give young female participants the possibility to learn the ins and outs of politics. shery: going back to what you said on this very busy week we have ahead, it is exciting. we are both here in singapore. we have the new economy forum coming up. it is really a lot to talk

about. haidi: these perennial topics have been in place for the last few years. but every time we gathered for this forum, it feels like there is a fresh set of impetus to find solutions. not just for the future but for the present. we have talked about climate a lot. energy transition is getting more important but also harder than ever with the energy crunch. shery: the last time we saw each other face-to-face was three years ago in beijing just before the pandemic. haidi: we did not know what was about to hit us. you can see it right here with bloomberg. full coverage continues. ♪

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