shery: this is daybreak asia coming to you live from singapore for the bloomberg new economy forum, we are counting down to the major market open. haidi: your top stories this hour. stray russian rockets landed in poland killing two people, the kremlin dismisses the claim as nato ally seek more information. shery: g20 leaders condemning the war in ukraine as president volodymyr zelenskyy addresses them. haidi: the user price data strengthened the case for fed moderation. shery: we mentioned the reports of two rockets falling in poland, we are getting a readout from the call between president biden and the polish president. president biden offering full u.s. support for and with poland investigations. we are affirming ironclad

commitment to nato and the polish president in a call and the polish president said the explosion happened near the ukraine border. we have seen the market reaction being pretty swift to those reports in the new york session. a pressure, commodities, oil, and grain rallying. haidi: the response is being considered under article four, the triggering article five and what it would require, we talk about culpability as we await more confirmation as to what happened. we are getting the response from rishi sunak saying he spoke with a foreign and defense secretary in the u.k. and looking into these reports of the missile strike in poland as they established what has happened. shery: look at how u.s. futures are trading at the moment. they managed to stay higher in the new york session, it was led

by a rally in tech shares after the ppi prices eased more than expected. this is following the cpi numbers as well. this is giving some confirmation and some optimism that the fed will be able to slow down the pace of rate hikes. this is not being supported in the asian session with crude prices continuing to gain ground and they are above $87 a barrel given the geopolitical picture. haidi: it is a reminder of the overlying of geopolitics and the conflict in ukraine is protected and capable of being escalated. we do expect to see that play out when it comes to the economic and financial markets. repercussions we will also be hearing from the man himself, the ukrainian president volodymyr zelenskyy . he will be speaking at the new economy forum on thursday, 4:00 p.m. singapore time. a number of key voices that we are getting to you to have a reaction to the story and all of that. shery: one voice will not be

hearing from is the white house national security advisor. understandable that he may have a busy morning trying to understand what is happening in poland at a time when the white house is pledging support for poland in the ironclad commitment as president biden calls in for security in the region. let us turn to those reports that russian missiles killed two people and bring in nick. what do we know at this point? >> unfortunately, we do not know all that much. as you mentioned, joe biden spoke with poland's president and i was conspicuously absent from the call was in motion of russia at all. poland, at least in formal statements it did not come out and say it was definitely russia that did this. there is a lot of circumstantial

evidence that does point to russia and the russia had launched a massive missile project is ukraine in the last 24 hours or so around the time of the strike. they took out a huge chunk of ukraine's electricity supply. there is a possibility that he could have been an accident or stray missile. it could have been ukrainian air defenses shooting down a russell 2000 missile -- russian missile. there is a lot we do not know. shery: but i was the latest when it comes to russia and ukraine and missiles landing in poland. haidi: the ukrainian president is due to speak at the new economy forum at 4:00 p.m. on thursday local time. that is a conversation that you do not want to miss. with the ongoing war nominating discussions, are

north asian correspondent is here and steve, it is incredibly timely whether intended or not to be discussing this as we get these gatherings on board leaders. what are you hearing in terms of the reaction? >> i think everybody is waking up to this news, we are staying in the same hotel as the biden administration as staying -- is staying. joe biden is saying that he had a phone call with a polish president already. he has been speaking with the head of nato. he has been active in the early hours here in bali. it is 7:00 in the morning. the missile activity in poland happened just before or right around 5:00. we are getting a number of different statements from the leaders who have gathered here in bali. the g20 is supposed to be wrapping up. a number of leaders will be

leaving, there are press conference is expected and a number of bailouts that are expected to happen in press conferences in this venue this afternoon including from mr. trudeau of canada and indonesia. we are hearing that rishi sunak of the u.k., they are under fire in the early days of being a prime minister, he is scheduled to have a bilateral with joe biden and xi jinping. he has put out a statement saying that the strike in poland and we are getting reports of the missile strike in poland and they will support our allies as they establish what has happened. on monday we have this interview with the european commission president. she has put out a more strongly worded tweet already. she has been here in bali. she says in her tweet, alarmed by reports of explosions in poland we are following a massive russian missile strike

on ukrainian cities. she is alluding to the report that there were more than 100 missile strikes in and around the capital of kyiv head of the missile that landed across the border in poland. i extend my condolences and support and solidarity with poland and our ukrainian friends. when he to have confirmation here in bali with all of the world leaders here whether it was indeed -- we need to have confirmation here in bali with all of our world leaders here whether it was indeed a strike and if it was accidental. annmarie hordern wish to vladimir putin was here in poly so that they could tell him to his face and condemn the atrocious war. those are her words happening in ukraine. we are waiting for a possible communication from the g20. the chancellor of germany says

they are getting more support by g20 leaders to support a condemnation of the war in you. we have to see if -- in ukraine. we have to see if that changes in poland overnight. haidi: that a steven engle in bali. we are getting breaking news when it comes to the response from poland, they have summoned the russian ambassador saying that the russian missile hit the border near ukraine causing two utilities -- fatalities. they are demanding a detailed investigation and they linked it to the really broad missile offensive that we have seen from russia in ukraine just this week. let us bring in a former fellow at the eurasia center and the economic advisor to russia and ukraine. it is wonderful to have you with us. although not under wonderful circumstances. what are the steps for nato partners who would need to

determine verification of the facts and i guess a collective desire to escalate? what do we know and what do you assume to be the case? >> thank you. there are two russian rockets, we do not know if it is accidental or they were diverted by the ukrainian air defense. that is possible. it has been cautious. they are calling for consultations with nato. consultations which is immediate action. the three baltic states and ukraine are much more complicated. they say this is a russian attack. all for 1, 1 for all.

more importantly, they have repeated saying that we are going to defend every inch of nato territory. i think the polls will come up with a much clearer investigation. what kind of rockets were these? and it is quite obvious they were two russian rockets. then they would have some proposal on what to do with nato. shery: poland is confirming these were russian-made missiles hitting their territory. how important will be the intent behind it be? when it comes to triggering article 5? triggering article four which is bringing forward consultations, those that have a lower bar? >> article four is not a high bar. that would be quite the natural

move. a spokesman made an official statement that poland will not settle consultations according to article four. that would be natural. the question is what would be undertaken and in reality, nato has said there are an enormous number of things they could undertake. there could be more sanctions which would be considered too little. they could have concrete actions. for example in meetings they have had some things on the table that may come back. there may be some other measures. nato can do many different things and it is important that they go very hard and wants. -- at once.

haidi: article 5 has only been invoked once and that was for september 11. when we look at those, the bars in terms of that is much lower. while not give rise to a conversation about air defense systems? not just from poland but for other territories, border countries that may be affected because there has been a lot of concern that something like this was bound to happen? >> we can say that it was surprising it did not happen before. even though we knew that the russians had been close to the border before. they had been careful. there was the old soviet rockets that do not have as much precision. according to the unofficial information, it was one of the more recent missiles that had been identified.

shery: tell us about the long-term implications, we are trying to look at the short-term. article 5 and article four, what happens in the long-term? as french president announced the brain death of nato two years ago and we see unified front coming from the organization. is this the trend as we progress through the years? what we see more solidified blocks form around this -- will we see more solidified blocks form around this? >> yes. the french president and the german chancellor are now in indonesia in bali together with the president biden and the u.k. prime minister and the canadian prime minister. they will come up and have a g7

meeting. they will make a uniform statement which has nato and the collective western group together. i think this sanction is likely to strengthen the joint western action. haidi: you have been an advisor to moscow, what is going on at the moment? is this an act of belligerence because this has turned into a war of attrition and they have not done well recently? what is your view? >> it is strange. at first, it looks intentional. and may be mistaken and -- ship it may be mistaken. they have come out with a strong statement, a strong defense.

a provocation from the west while russian began to says this was in fact a ukrainian air defense missile that diverted a russian rocket. these are the two ideas coming out of russia today. haidi: as a former senior fellow in joining us, let us get to vonnie quinn for the first word headlines. >> russia is expected to agree to extend the u.n. broker-deal allowing ukrainian grain and other foreign products in the black see the deal is set to expire on saturday. the one pledge that the conditions for a deal would be met and including making sure ukraine does not use the export corridor for military purposes. u.s. authorities are discussing the possibility of bringing bankman-fried to america for questioning over ftx.

he believed ftx had enough money to repay customers. ftx has appointed new leaders. goldman sachs paid more than $4 million to an executive who complained about having a toxic environment for women. it was a deal that was cap secret, it is making vulgar and dismissive comments about women. coleman says a disputes reporting and anyone who works with the ceo knows his respect for women. global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. shery: we have a lot more great conversations i had on day two of the economy form in singapore. we will speak with christian

line coming up in a few minutes. -- lanng in a few minutes. this is bloomberg. ♪

shery: we have breaking news surrounding the news on the rockets falling in poland. ambassadors are holding an emergency meeting on the polish explosion. this is as poland has summoned a russian ambassador in warsaw saying that the missile hit the border region near ukraine. president biden has reaffirmed the u.s. ironclad commitment to nato in a call with a polish president -- with the polish president.

they will be holding an emergency meeting on the explosion. haidi: we see the immediate reaction when we look at energy and the commodity markets like the grain market. hitting poland, that is been confirmed by poland. crude has seen an upside. the rally from oil to corn jumping following the reports as well as we are seeing a bit of downside in key futures and that is the nasdaq futures more broadly. shery: another military flare up in ukraine could depress sentiment and complicate the vital food commodities, joining us is an agent micro strategist. good to have you with us. .8 timely morning for you to be with us given the -- quite a timely morning for you to be with us given the news. look at the inflation picture and the fed rate path? >> thank you for having me this

morning. as you said, the geopolitical risks are still there and the investors will cope with the news coming from the conflict in ukraine and a bit of tension between u.s. and china. we are starting the new year on a relatively defensive setting. we still think 2023 will be the year of pivots in global monetary policy and economic data and financial markets. as you said, the one factor we are paranoid about is as a possibility of disruption in the food supply. that would be an impact on all economies especially in the emerging markets. so far, the latest we had in poland is the grain corridor deal is still holding. that is good news.

assuming that this is maintained, we could see significant disruption for the markets as far as the the food and -- as far as the food and inflation is concerned. over all, in 2023 the likely picture will be peaking rates, stabilizing inflation, and a shift in the market sentiment. studying with the currency market. we still need to get there first. it will be a bumpy road. as a geopolitical risk. 6-9 months from now. the conversation we will have about markets will be quite different. haidi: you talk about the currency markets because we have seen the dollar break lower. shery: even with a few political tensions it is not really jumping or moving higher at the moment.

>> it is due to the benign inflation data from october in the u.s.. the market is moving toward peaking rate outlook for the u.s. as we are heading through 2023. keep in mind in the precision episodes, you have this period were falling inflation, economic data is a safe haven for the dollar. we think the dollar trend has completely reversed. we do see some dollar strengthening including in the european currencies. we do maintain a selective loans versus the european currencies. the rally in the dollar is incredible. it is unlikely to be repeated next year. in the near term, we have seen some dollar strength.

in the medium-term, we do see the possibility that the dollar strength peters out. they have a bit of a reversal in those strengths. by the end of 2023. haidi: you talk about like a global value traits, i wonder if that extends to china? we are looking at the exponential growth we have seen in covid-19 cases. we could see cases hitting 20,000. we see the property sector building after the decline in new home prices and that is a sector in crisis. what is the catalyst going four for china? -- forward for china? >> the journey towards reopening has begun.

it will not be a straight line going forward. it will involve some trial and error. as we have seen in other countries that have reopened, the direction is pretty clear. we are talking about this being depressed despite the rally the past few days. the evaluation of the chinese market is quite depressed against the other markets. in our view, this value trade will still work. chinese authorities have complete initiative against the market and realizing new guidance on vaccines and pcr tests. in the near term we are quite positive and we have some choices in china versus the broader emerging market and as far as the global value story is concerned, it is true that we are dealing with some high risk. we do believe that investors will rely more on dividend styles and value factors of

those two, i promise of growth in hr given the challenging growth and policy picture. -- a promise of growth given the challenging growth and policy picture. haidi: japan, mid-caps are a favorite for next year? >> for our japanese allocation we are trying to be a bit more creative. you have seen in the bloomberg consists numbers japan is expected to outperform all developed markets in 2023. that happens to be our view as well. it is benefiting from belated reopening and potential boost from tourism sectors and less disruption on the front and policy support and fiscal and monetary fronts and trends are helping there.

we do think the country will benefit from strong domestic demand. one way to benefit from domestic demand, that is mid-cap. shery: right. thank you so much for joining us. coming up, with more threats to global supply chains given the geopolitical tensions rising around ukraine we are joined by trade shift, a global leader when it comes to supply chain platforms. where joined by the ceo and cofounder christian lanng. this is bloomberg. ♪ folks, it looks like we're gonna have to land this big old bird earlier than expected because it's the xfinity black friday sale. get the fastest mobile service with xfinity mobile. yeah, we'll be cruising in to get the best price for 2 lines of unlimited for just $30 each per month. oh my! plus, for a limited time,

get 500 dollars off an eligible 5g phone. even you in 22c. flight attendants, prepare for big savings. drop everything and get to the xfinity black friday sale. haidi: we are getting news in click, call or visit a store today.

regards to the rockets landed in poland and the two fatalities. poland is looking into invoking article four. speaking after the government meeting and taking place -- the meeting taking place in war saw, they are that the russian ambassador was summoned for a detailed explanation -- saying that the russian ambassador was summoned for a detailed explanation. it was a russian-made missile. the implication of article four is this is a high bar. and oma's of the discussion in terms of what the allies and partners want to do next. shery: article 5 is the one we are watching if there was deliberate intent in attacking poland and what that means for collective defense for nato members. all of this has an impact on the markets when it comes to the commodities side.

oil prices, grain prices, jumping from the news. u.s. stocks managed to gain ground and that was a net positive. we are seeing the downside pressure with sessions down. you have to put in the broader picture of things. we got the ppi numbers, easing more than expected. a sigh of relief when it comes to inflation. this was the cpi numbers as well. the rest of the markets see a lot of downside pressure at the moment. we were talking about the u.s. wholesale price stepping down in october. one week after the retail price is undated the same -- did the same. shery: hour editor is here. haidi: we talked about the threat of another supply shock is never far from the surface. we have seen the changes in the

wake of the geopolitical developments. when you take a look at cpi -- is the situation a little bit clearer? >> sorry for interrupting you. it is almost like the inflation guards are striking and say do not get too confident. do not get too confident. on the way up producer prices and consumer prices we know that the war in ukraine started in march, a really started kicking the prices higher. there is a lot more to inflation and there is demand and so much more. to a certain extent, easing energy prices, you live by them or die by them. this october number which was 8%, less than expected, down from 8.4% year-over-year, they were a factor in october. we will see what a difference they make of this tension, this question about what will happen with the war and how that comes into fruition or not.

the core cpi was down 6.7 versus 7.1. let us put it in perspective, inflation overall is very high. definitely, ppi year-over-year was up 12%. now it is down a lot. it is still very high. look at that chart. the cpi is 7.7. that is coming down quite a bit but not good enough. pce, this is why it is good news and allowing the fed to look at a slower pace of hikes at the same time they keep warning us but do not think we are done hiking rates. we know we can finish hiking rates until the point we think we are restrictive and then we get to pause and we can see what these numbers are doing. shery: what does this mean then? is there enough change to shift to ship 250 basis point rate hikes? >> we heard about this in the

september fomc meeting minutes. as we move towards restriction we may be able to calibrate our moves. certainly, given these two key indicators and the fact that it looks like at least things are slowing down and starting to stabilize a bit and go down even if it is not far enough, it may is on the table more than it was. the president of the philadelphia fed had this to say about what they are doing. >> the consumer pricing, i do expect we will slow the pace of our rate hikes. sufficiently restricted stance. at some point next year i expect we will hold the restricted wait for a while -- great for a while. >> he is ambiguous, he says

as we get closer, we can start slowing our pace. is it restrictive to slow down? there are glimmers of hope on inflation. he sees the fed having to still think about getting too restrictive. of the bloomberg economist survey says that the fed is expected to get to 5% by early march and the economists could maybe pause but there is a way to go. 100 basis points. haidi: that is our policy editor there. the global trade and supply chains disruption is being discussed in singapore. joining us is christian lanng, the co-ceo and cofounder of -- the ceo and cofounder of tradeshift. this is a reminder of how quickly the supply chain disruption and price disruption

can happen. how difficult has it been to manage the business through all of the volatility? >> of the last three years has been getting a lot of attention. you are seeing rolling stock through the global supply chain over the past two years and i think people should get used to this being the new normal. things have been going very easily. a trade war with covid and brexit and the ukraine war, you are seeing these things and they keep coming. haidi: your data shows the slowing when it comes to global trade volumes. is that a supply-side or a demand-side? >> we see the massive spikes up and down. thanks almost fall off of a cliff during covid and earlier this year and we see a more slow decline but is not so slow. europe has been declining for

the whole year. the u.k. even worse. china has been turning up in some places in the u.s.. it is i diverse picture and it is going to be caught by -- it is a diverse picture and it will be caught by energy. they have a hard time right now. shery: how much of the decline was due to the invasion of ukraine? >> a lot of it is associated energy cost. if you look at the european manufacturing and the european retail, it is all under that and the consumer is pulling back. we have not seen the same kind of consumer cold out in the u.s.. haidi: what is interesting about being here, one the stuck out was yesterday we were talking about the head of pwc. shery: the key concerns across

asia, covid zero, china, europe, energy prices, inflation. the u.s. consumer sentiment and starting to dampen. is that something you see when you are looking at supply chains? >> we see purchase orders as predicting the main six months from now and they are thinking they will see much less demand and they have a buildup of inventory. i think one concern we have is the central-bank strategy. is that when that can fix a supply chart and it is an unprecedented situation. it is in sources we have never seen before. we think we have been worried about recession versus inflation. 1 we have been talking about these issues for the past five years. are in the thick of covid. with the geopolitics overlying, our supply chains more resilient? -- are supply chains more

resilient? >> resilience is a dangerous idea. and means supplies have -- it means suppliers are being asked to make more inventory and there are rising interest rates. it is not the solution, more agile supply is. shery: resiliency has often meant redundancy. >> that is painful in the system or you already have huge bottlenecks. shery: does that mean more business for you? >> we have seen more business. a lot of massive projects to create more resilience in the supply chain and get more supplies. people want early signals. if everything is running as it

does on paper, that can become a fact and it takes a long time before you know what is happening. haidi: is 2023 going to be better or worse? >> i thought we were finally out of covid, i think we already have had a year that has had some shots we do not expect. i think i was surprised with how we have dealt with inflation and the largest companies and i do think it is a light at the end of the tunnel but it will take a long time. shery: you are saying there is a demand decline in your customers? >> yes, i do not think it is so severe, there is a lot of excess capacity, we have the whiplash effect. lesser people were nervous about the war and that has not been

delivered because it has been so delayed in delivery. haidi: we are still dealing with tariffs on china and the trade war. it is not meaningfully -- it has not meaningfully changed. what would change that business? do you think the demand to come back of the politics were improved? >> the trade war has been the policy but the west has nowhere to replace manufacturing capacity. it is a massive project. it would take decades to get even close to pulling off. their is a codependency still -- it is a codependency still. there are consensus that both sides need each other. i think traders like oil flow and there is nowhere else in the system to make up for china.

haidi: we have talked about the smiles on body language! great to have you with us. but as the ceo and cofounder of -- that was the ceo of tradeshift. shery: we have lisa and she will be discussing what she sees as potential when it comes to china's health care as china tries to navigate the way out of covid zero. let us get you to vonnie quinn. >> the sterling prime minister says his meeting with xi jinping will have stabilized ties between the two nations. their meeting in bali was a first meeting in three years, any state media says there are no fundamental conflicts between the nations and there is potential for trade.

christopher says the bureau has brave national security concerns about tiktok and the fbi is allowing tiktok to continue operating in the u.s.. china's government could use the app to control many of their user's data. >> we have security concerns from the fbi's end. they include the possibility that the chinese government could use it to control data collection on millions of users or controlled the recommendation algorithm which could be used for influence operations if they so chose to control false where -- software. >> covid lockdowns are causing public anger with where protests happening due to the rules. hundreds of people are marching in the street. china reported more than 17,000

new covid cases on monday. the highest since late april. global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. shery: we have plenty more to come on daybreak asia. we are live at the fifth animal bloomberg economy -- annual bloomberg economy forum. this is bloomberg. ♪

haidi: let us get a check on cryptocurrencies, we are watching for the washout when it comes to the developments on ftx. the crypto contained in is hitting a lot of firms -- contagion is hitting a lot of firms. you see some crypto pulls out there, cathie wood is buying the dip. we see the discount rate to record there. there is a balance and a stable gain. bitcoin is underwater. shery: we have the skybridge's capital founder. take a listen.

>> i do not want to revise history, i want to talk about it before the fact and than after the fact. i met sam through a mutual friend and i had a an investment in something called lender x. i was one of the seed investors. it has some licenses that were important in the united states. i made a connection to that group and he ended up buying the group and i thought that was a great transaction for everybody and prior to this past week they seemed pretty happy together. and then it dovetailed into a discussion about doing a sponsorship for the salt conference. we have a hedge fund conference that weight morphed into a crypto event -- that we morphed into a couple event. salt ftx, if you will. wait negotiated a transaction with him which was a three year deal.

i think it was a three year deal. we did the conference at the java center successfully. we needed a decision to do a conference in the bahamas. that is where the ftx international was based. it was a very successful event. it led to me having a lunch with them over the summer. i met with sam in august in the bahamas and they said i interested in buying the company. the whole company. i was hesitant to do that, i am 58 years old, it has been my life's work. why don't we start slower than that? i would need cash as opposed to stock because of my age and what i would want to pay off my partners that would be there with me. right negotiated from august 6 to the day the enclosed -- we negotiated from august 6 to the day the enclosed. they wired us the money. they put the proceeds into the

token which i thought was in the spirit of the partnership. i do not think it was a big deal at the time. i did that. and then, we went to the middle east. fii was a couple days ago. >> when you say hosted, you introduced it him -- you introduced him? >> his narrative was he had a billion dollars in cash and he wanted to raise another $1 billion, he wanted to fortify his businesses and he was buying distressed and trying of the industry. we embarked upon abu dhabi and i have been doing this longer than sam has been alive so i have had a lot of relationships over there and i have a lot of relationships. i think that what happened

frankly is he said something about seizing binance and he got super upset about it and said ok, we are in a divorce, we are not going to make love, that was the twitter comment, right? he was hit with tokens and i do not think sam could keep that token at a level that was support for his balance sheet. we saw a collapse. weirdly, the association and the trip to the middle east to the first domino earlier than the domino would have tipped otherwise. shery: that was anthony. haidi: we have conversations coming up as we get into day two of the new economy forum. shery: the venture partner will

be joining us in the next hour plus more on bloomberg markets, china open. we have an alert, japan's year on year growth is only 2.9. the expectation was growth of 8%, that is a swift deceleration from the previous month as well as we have third-quarter gdp numbers yesterday. haidi: plenty more to come. this is bloomberg. ♪

>> my sense is this is accidental, it is unlikely that russia intended to attack poland with two straight rockets. -- stray rockets. we need to go through the appropriate straps to investigate this. >> if you ask me for the first directions, lafayette will support -- latvia will support consultations under article four. >> we need to be prepared to show poland and other nato members that we have their back. >> hitting missiles on nato territory? this is a russian missile attack on selected security.

this is a significant escalation. shery: some of our guests reacting to the deadly missiles in poland. haidi: we will be hearing from the ukrainian president. volodymyr zelenskyy is due to speak at 4:00 p.m. singapore on thursday. let us get to the latest business flash headlines. meta has lost two indie executives. the company concerns -- confirmed that the two executives came during increasing regulatory scrutiny on big tech in india. vietnam's richest man is considering an ipo in america. he could raise at least $1 billion or more, vinfast is

looking at market conditions to determine timing. walmart stocks have fallen after a strong quarterly sales. it has announced an buyback plan and it has continued to gain market share in the u.s. grocery business. we have plenty more coming from the economy forum here in singapore. this is bloomberg. ♪

folks, it looks like we're gonna have to land this big old bird

earlier than expected because it's the xfinity black friday sale. get the fastest mobile service with xfinity mobile. yeah, we'll be cruising in to get the best price for 2 lines of unlimited for just $30 each per month. oh my! plus, for a limited time, get 500 dollars off an eligible 5g phone. even you in 22c. flight attendants, prepare for big savings. drop everything and get to the xfinity black friday sale. click, call or visit a store today.

shery: this is daybreak asia coming to you from the meeting in singapore. this is coming at a time we have seen more optimism after president biden and xi jinping met. geopolitical tensions heat up around ukraine with the rockets falling in poland. haidi: poland saying these were russian-made missiles and they are seeking consultations with their partners and allies. the implication of article four could happen as these discussions and article five is a higher bar but if this really comes into the conversation of whether we need to see aerate systems around the area. shery: we have seen the market implications already, we had commodities jumping, oil, grains, up. i can look at what is happening in the japan open, the japanese

yen is holding at the 138 level. we have ppi numbers easing a little bit as well. you are seeing the 10-year yield as 3.76. it was an interesting new york session because we have pressure coming from the geopolitical tensions and u.s. stocks managed to end higher. the korean won has advanced given the amount risk appetite returning to the market. we may not be seeing that much of an upside in today's session as we see the reports of those rockets in the korean won. haidi: it is interesting this week, i high when it comes to geopolitics. and was seen for successful meeting, we are seeing markets taking the step back.

we will be seeing this emergency meeting on the missile strike landing in poland according to local reporting. we are watching out for that, this has become the dominant topic of conversation at the g20 as well as here in singapore. shery: what will happen to article 5 is the key question because article four, we have seen it already triggered seven times in the past including by turkey and european countries during the first european and russian invasion of ukraine. article 5 is a high bar. we are seeing if world leaders move around the latest headlines on poland and the rockets hitting the country. poland is invoking article four with nato allies and we are expecting to hear from the president of ukraine on thursday here at the new economy forum in singapore. haidi: we heard from him at the

g20. he is referred to as the t 19 -- g-19. it will be interesting to consider the scope of china's reaction given us much criticism has been given to the know limits friendship as it were. our chief north asia correspondent stephen is there on the ground and we can only imagine this is a conversation that is carrying on. we have heard a lot of reaction from partners and friends and allies? >> i think obviously the agenda and itinerary is being shifted by the minute and in bali at the g20, we left the grand hyatt at 5:00 in the morning just when the news was breaking out of that is where the u.s. delegation and joe biden are staying, he was on the phone

early when news broke of the missile strike into the polish border. he has already spoken to the nato secretary general among other leaders as well that he spoke to and we are seeing the killed reporting that the g7 leaders are arranging an emergency meeting on this and it is likely that this will happen here in bali. midday, many of the u.s. delegations are going on to bangkok as we are as well for the aipac meetings. joe biden will not be going to that meeting. is a fluid situation. there are a number of bilaterals expected to be held today. xi jinping has a meeting with rishi sunak and they are meeting with joe biden on schedule. we have a number of different press conferences that are expected at the end out of the wrap up of the g20 in bali to happen including duster she drew

-- justin trudeau, emmanuel macron, we have to see if all of this changes because if we do, we are trying to confirm if there will be a de facto g7 type meeting of like-minded leaders here in bali this morning in the wake of the latest development in poland. shery: how much consensus could there be around you 19 as volodymyr zelenskyy called it when it comes to russia -- around the g-19 as volodymyr zelenskyy coded, when it comes to russia? >> we expected to possibly be adopted and distributed and improved if you will buy all of the members of late afternoon, it did not happen and the wording is radical here. coming off of the meeting in

cambodia prior to the g20, the foreign minister of russia had blasted the united states for unreasonable demands in the wording from them and that poured cold water on whether there could be a consensus and g20 for a closing. we heard from the chancellor of germany saying that there is a growing support for the kind of verbiage that the g7 which would like russia condemning the war and not necessarily saying that russia has a war in ukraine. will the russians and sergei lavrov agree to that and there are reports i have seen and it is not substantiated yet, he has already left bali. i cannot confirm that. we are trying to check that. the u.s. delegation does leave midday today and others will be

leaving as well. it is a food situation we are trying to keep on top of. we have heard from volodymyr zelenskyy following the missiles landed in poland and he did speak yesterday, he will be speaking to the new economy forum in singapore as well. let us hear what he had to say about the muscles and in poland. -- missiles landing in poland. >> today, a russian missile hit poland and people died. how many times has ukraine said that the terrorist state will not be limited to our country? >> the last thing i will say is that the european commissioner president has been here in bali at the g20 and gave us an interview about the atrocious war that has been waged in ukraine. she was more outspoken than a

lot of people here, just put out a tweet following the reports of the polish missiles. she is as i extend my condolences and my strongest message of support and solidarity with poland and our ukrainian friends. a fluid situation in bali as a leaders change their schedules and itineraries. haidi: that was steven engle between us from bali. shery: geopolitics will be driving the market action this wednesday. let us go to mark, as far as geopolitics, the latest ppi numbers in the u.s. showing inflation concerns easing. that is supported in the new york session. >> i think there is more focus on the inflation a situation which is bringing down treasury yields and the dollar -- on the inflation situation which is bringing down treasury yields and the dollar. gas prices in the emerging market the asian world.

will have an eye on the political situation as well. the bottom line is that the diplomacy will work and somehow people will come to some sort of resolution without the need to escalate the situation in ukraine or russia. there is a risk of a miscalculation and traders are watching that closely. they were saying earlier, the bigger themes of people getting used to the idea that possibly we will get into a situation where they will be more confident about calling peak rates around 5%, that will help to get asset pricing in a situation where people can be more confident about what it looks like in 2023. especially good for the market where people have an anchor to price in their returns there and in the commodity space as well. as a picture is improving in terms of where people see the risk asset space. in the background, any

geopolitics could rear its head. haidi: it is something to be mindful of, at the same time, we are inching to a pivot or a softening of the fed. we heard from raphael bostic about the glimmer of hope in softening price pressures. >> the fed has given themselves a lot of optionality with the last meeting, look at what jerome powell has said, he clearly cited that the data and reasons in the outlook for him to be much more nimble. from here, the fed is wanting to use those options as much as possible. that means that there is no certainty about how much they will hike in december. it looks like it will be 50 basis points at the moment but that is certainly up for debate

as death reports come in. i am looking ahead into next year. we are beginning to get a situation that could be reinforced by the next dot plot. we could see a peak in rates early in 2023. as a question is how long the fed will need to hold rights -- the question is how long the fed will need to hold rates. from here, each data point is important. we saw the ppi softened slightly. also what we hear from fed speakers, they will be giving us some clues as to where they see the dot plots. there may be a small increase but not a large one from the dot plots we saw in september. haidi: let us get you to new york, vonnie quinn has our first word headlines. >> russia has agreed to a deal

allowing exports of ukrainian green and -- ukrainian grain. they have said that the conditions for a deal has been met and they have not used the exports for military purposes. >> there is a possibility of bringing bankman-fried back to the u.s. after the ftx collapse. he believed ftx had enough money to repay customers. ftx has appointed new leaders. goldman sachs paid more than 12 million-dollar to a veteran executive who complained internally about toxic workplace for women. the bank settled with the partner two years ago in a deal that was kept secret her account, making it vulgar and dismissive comments about women. the disputes -- goldman disputes

the reporting and says anyone who knows the ceo knows his respect for women. the australian's president met xi jinping and it was the first meeting between the leaders in almost three years. chinese state media says there are no fundamental conflicts between the two nations and there is potential for trade. global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. shery: we will discuss everything crypto following the ftx fallout. yuzu kano joins us next. this is bloomberg. ♪

haidi: let us take a look at how markets are in europe. markets continue to reel after the missile strikes in poland. europe is hired by a quarter of 1% and the german futures are firmly in the red. we are watching any moves out of the euro.

there was a tiny gain when it comes to dollar strength in reaction to the news. that has not held. the 100 futures are falling by 1%. session lows after we had the initial report of the russian missile crossed into poland resulting in two people being killed. shery: that is transferring to the crypto space as well. this is after we saw a little bit more market stabilization after the bankruptcy filing from ftx. this is after we continue to hear all of the legal pressures. the ftx insolvency becoming one of the key topics of the discussion in the crypto space. with us is yuzu kano, head of the largest computer currency exchange in japan. thank you for with us.

especially at a time we are trying to digest all of these headlines. what is happening in the crypto world? >> it is shock. i am getting a lot of information from others and i'm trying to digest. shery: is bitflier impacted by this? when it comes to the broader picture, sample regulations and scrutiny, how is that impacted you though? >> japan has eight double layer by the official authority -- a double layer by the official authority agencies. there is an entity that has protected the customer assets. shery: is this an existential crisis for crypto pertaining to the prospects of being integrated into mainstream adoption?

>> i think the regulation is important to get into the ministry for sure. haidi: with what happened with ftx, is that a big blow to confidence? >> it is a huge impact because it is large. it hit bankruptcy, there is a new report that they are filing for bankruptcy. you may continue a little bit forward. shery: we have seen retail traders taking a big hit and we are hearing that the exchanges make it hit a lot. they want to keep anything in exchanges and move all of the tokens and assets off-line and into wallets? >> having the assets off-line is the safest way, it is difficult to manage the private key by

yourself. shery: you see upside when it comes your business? >> yes and no. globally, may be the customers may cool down. if you look at the japanese exchanges they are so regulated, there are customers coming to japanese prefectures and japanese plants and dealing with the exchanges and coming back to japan. haidi: you get the feeling that authorities want to bring japan into world three or all of the opportunities without the usual level of cumbersome bureaucracy that you may associate with getting things passed in japan. with what has happened with ftx, do you think the risk is that there will be an inclination towards more regulation? >> japan has very strict regulations after the point

check. i think the rest of the world may follow to have the strength of regulations and how the japanese regulation model to be the standard for the customers. this is a mandate. you need segregation of the client assets and then we can all use -- cannot use any part of the client's. we have to put the fia moneyt to the customer -- fiat money to the customer. shery: we had the regulations that may be more helpful in helping sentiment in this industry at this time. we have seen exchanges released their report preserves. is that enough globally? what else needs to be done? >> the transparency, it is not enough because it is not official documents. we have this asset and it is

very important and the audit should prove it. in japanese law, we should have the regulation regulated by the auditor, so bitflyer had to submit information. we have to do close on webpages so that all customers can see it. that is really important and this is the first step to making transparency on the balance sheet the first step of the customer production. haidi: tax reform was seen as a litmus test of how seriously japanese policymakers want crypto. if we miss the boat in december, we miss it completely. do you think it will get done? >> there are many tasks, i am optimistic for someone, it does

not have to be the maximum tax rate which is 55%, that is difficult to change down. we may be challenging that and changing the tax system. tax system of the exchange offering, the exchange actually offers or issues tokens, they may actually go down and that is where we are challenging. haidi: will cryptocurrencies go higher or lower? >> it is difficult to say. i think it will go a little bit lower. haidi: grade to help you with us, he is the cofounder of the ship is great to have -- it is great to have you with us, he is the cofounder of bitflyer.

the g20 leaders are meeting to discuss the reaction, we know that poland has shared a consultation system about article for invoked. shery: steven engle is winning us from bali. -- joining us from bali. what are you hearing? >> the g7 leaders are meeting, the president in addition to other leaders, those being joe biden, rishi sunak, olaf scholz, the prime minister in italy as well as justin trudeau of france and emmanuel macron and the others that i said, our itineraries are being changed this morning as the leaders wake up as we did in the early hours of the morning and the u.s. delegation is staying here in bali.

changing their schedule after the report, we are hearing from sources from poland itself that it was a one russian missile that landed in bullish territory hitting a village there. the big decision and i do not want to get too far ahead of this as the leaders are consulting with each other and the nato leader and polish leaders as well and we heard from volodymyr zelenskyy of ukraine condemning this missile strike. they have not confirmed this was intentional or accidental. again, it raises questions that you have been talking about whether article four or even more seriously article 5 in the nato provisions would be activated. we are not there yet or anywhere close, they will meet and we will give you the updates in bali in the 20. -- in g20.

haidi: we have plenty more to come. this is bloomberg. ♪ or a family you make. i'm padma lakshmi. i came to this country when i was four years old with my mother. we came here because it was a land of opportunity. but for many, that's not the case. immigrant families are being separated. black and brown families are torn apart by a broken legal system. lgbtq people suffer discrimination in adoption and health care. the need to protect and defend the civil liberties we all hold dear is more urgent than ever because families belong together. you can help by joining the american civil liberties union today.

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. the aclu has fought to allow lgbtq couples to marry, for racial justice. to stop a family separation. we can't do this work without you. together we can defend our democracy, ensure liberty and justice for all, and keep families strong. so please call the aclu now or go to my aclu.org when you use your credit card, you'll receive this special member kit to show you're part of a movement to defend free speech, protect our civil liberties, and keep families together. i hope you'll join me in supporting the aclu today. because we the people means all of us. call or go online to my aclu.org

to become a guardian of liberty today. haidi: think a look at energy markets and the risk appetite, -- take a look at the energy markets and the risk appetite. we digest the reaction to poland confirming one muscle from russia landed in -- missile from russia landed in their territory. the g20 is in bali as poland is saying able seek consultation the ship will seek consultation -- it will seek>> this is dayb.

christopher wray says the bureau

has great national security concerns about tiktok. the fbi's passing input onto regulators. he told lawmakers the government could use the app to control the data of millions of users. >> we do have national security concerns, at least from the fbi. it includes the possibility that the chinese government could use it to control data collection on millions of users and control the recommendation algorithm which can be used for influence operations if they so chills or to control software. >> nasa is hoping that their time is a charm. they will try again on wednesday to get the moon mission off the ground. it's the debut of the new rocket. previous launches have been delayed.

china passed risk over lockdowns are fueling public anger with some residents staging rare protests against the stringent rules. video circulating on social media showed hundreds of people marching on the streets which has them locked down last month. china reported more than 17,000 of it cases on monday. 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: let's get back to the top story. poland is confirming a rocket hit -- the reaction globally has been swift. reporter: it certainly has. we may even hear from president biden, that will be in the morning bali time. we have heard from a number of

countries, quite concerned about what this could mean, what we know is only partial. but we don't know is significant. we know the rocket had struck into poland killing two people. it was also under that border with ukraine four miles away. we also know russia is saying it did not aim the missiles near the border, it's not say more than that. we know there is concern, geopolitical tensions are already high and this comes as the g20 is meeting. vladimir putin is not there. there israel questions as to what this could mean, and of course the u.s. said that if the nato member was attacked, they would have to react.

we're waiting to hear more, whether it was intentional or a mistake. in any case, a rocket did enter: and that does change things geopolitically. shery: the question of culpability is key. how do we feel about the broader backdrop? does that feed into what may have happened? reporter: that's a concern. as you point out, the intent and whether this could have been an accident is possible, especially given where it was near the border. of course, vladimir putin not being at the g20 meeting, russia having not done well. having to leave some of these

areas. there are always questions, given this being a nato country and poland taking in a lot of ukrainian refugees, it's of great concern. the timing is interesting as well is where it fell. we will be hearing a lot more in the coming days. this fits the u.s. and an interesting position. president biden said a nato country being attacked means that u.s. would have to take action. we would have to wait to hear from him and other nato allies. haidi: our political news director with the latest. let's bring in our coanchor. great to see. whether or not as deliberate is one deliberation, the issue of

whether there is the collective desire to respond, where does that lie? >> it's clear, for the last six months, the nato secretary-general has said they do not want to get involved too much. for the moment it is extremely important to see what the intent of russia was. we have heard over the last six weeks, the secretary-general of nato saying we always need to keep that military channel open to understand exactly what the intent is. this is not the first time we have not had -- nessel. it was in march that we had an unmanned drone that ended up in croatia. at the time, it's all about intent. everybody is on high alert because once you engage nato, understand paul amongst you meet with its allies, this is for engagement. this is why nato has refused to protect the airspace of ukraine.

they refused to send some heavy machinery weapons, the air and surface missiles. for the moment, a lot of lsa let's keep our heads cold, let's wait for the response, let's see what happened. shery: you have been following the story since the invasion of ukraine in february. do you see it as an incremental development? airspace, could it change the calculation over ukraine? >> this could change anything -- everything. it's clear on the ground, is not winning the war as he is expecting two. we are seeing him move more into missile strikes, all of the energy infrastructure meant 7 million people were without energy.

we understand resources this could be a new way of going into the winter months. troops on the ground, missile strikes. it's unclear, jodi was talking about this. we come back 24 hours after the g20 when we see russia's allies and that is china and india. not defending them, taking a harder line, there still defending them but saying this has economic consequences and we know g20 countries are trying to get stoner language on russia and the communique. i don't think the timing is something we need to ignore because it putin feels cornered, it could change his tactics going forward. shery: it could give rise to more miscalculations or provocations. regardless of the nato piece, is a going to give us more appetite

for conversation around air defense systems to protect at least the territories that might be affected by the accident or provocation? >> as soon as he starts defending airspace and you earn means you are engaging nato. anything that goes through, you have to attack and that it's a full on confrontation. what is still unclear to me is what is the way out of this? escalations, everyone is playing out in their minds and his worst case scenario for everyone. de-escalation is much harder. when he said happen for this conflict to be resolved at least for a cease-fire. it was interesting, the president was asking for a cease-fire but who is going to go to russia and talk about peace. is it redrawing the map? is he giving them territories?

we have not had a plan. shery: as you say, president putin could be feeling more cornered. such a good time to have you on daybreak asia hear from the bloomberg new economy forum in singapore. we will get the opportunity to hear directly from loan, zelenskyy when he joins the bloomberg new economy forum tomorrow. it's thursday afternoon in asia. thursday morning in europe. this is bloomberg. ♪

shery: this is daybreak asia, we are brain you the most timely conversations of the day including geopolitics, the economy, inflation and technology. haidi: we continue to watch a path out of covid 04 china, beijing cases are taking down a little bit in the latest numbers. the next guest is a top-ranked influential investor, with us now is the managing partner. great to have you with us. i want to start off with this quick chart. you talk about how you observe health care at levels where we need to start seen consolidation. this chart shows valuations for

the csi 200 companies. they have seen quite a bit of volatility. you see them coming down a bit. in the flushing out of excess as liquidity becomes scarcer, what do you see for health care? guest: thank you for having me. it's interesting. ever since early 2020, we have had ipo's. over 70 companies have raised a new round in the last 15 months. we're seeing the better companies that are performing good milestones are getting more support from the investors. because there were so many investors who are retreating from health care globally, they are investing actively in health

care because of covid. we're starting to see a lot more activities within health care investors. until we see the ipo window open again, it's probably going to slow down. we are investing in companies. haidi: what do you see as a catalyst? guest: last night i was asking some bankers, what are the catalyst? some of the companies in the portfolio may be catalytic in getting the ipo window. i believe public investors are looking for more clarity with u.s. china relations and policies within china and so forth. when it comes to investment opportunities in china, the last

two or three years, we have been looking for needs and china, and how do we expedite and get clinical trials cheaper? some examples are simple blood test, liquid biopsies, they are able to find 90 liver cancer patients. another case important, the vaccine, there were able to launch very quickly. shery: technological innovations in china, what sort of opportunities already seeing there? guest: that is one. the vaccine. this became the first vaccine approved. i took 18 weeks ago in shanghai. it was very simple. inhale two or three times and

immediately you get protection. it's very effective. at the same time, we are seeing interests within drugs. in the last few weeks we received four term sheets from big pharma for portfolio companies for drugs they develop. shery: what is a demand from the public for those tech innovations? a lot of issues has been the lack of trust in these new vaccines. guest: it's interesting. we are seeing the tripling of vaccination rates within cities, because is being rolled out nationwide, also internationally, that's really interesting. one of the things i want to bring out as i believe china is a solution to affordable health care for the world. i want to go straight that by

saying mike bloomberg talked about yesterday the international cancer coalition and we are working very hard to see how drugs can go down nationwide, internationally and globally. shery: not to be cynical, but someone who has experience in the health care system, i have to say they need to make health care affordable and accessible for the internal demographic. his progress being made quickly enough to adjust concerns? that plays into the issue of trust as well. guest: yes. i think there is a range of different companies. probably 90% of companies do not have a lot of trust within the system, but these days, you see even last year there were 10 to 15 programs licensed to big pharma.

everybody did due diligence. we are good data. nursing a trend of the extreme types of companies. it's getting better and better and also the affordability, we're seeing prices have come down significantly so the system can support the innovative drugs. haidi: we have been hearing about these opportunities given the demographics and technological innovations for a while. how do you find the new drivers of growth and new opportunities out there? guest: it's one of the things we did. investing in lots of new areas. we just received an agreement,

$1.2 billion agreement for six assets they derived from ai. they became the first company ever to use ai to identify targets to design a new drug, and they are finishing phase one clinical in china. we feel one way is to use technology, another is the clinical development is only 25% compared to u.s.. how do we leverage that so we can bring 90% of the costs of drug development is clinical trials. how can we bring that down so we are not launching cancer drugs at $300,000? it's gone up 26%, how can we bring it down to a fraction of that so everyone can afford it? we saw today, i don't think every buddy can afford 300,000 cancer drugs.

haidi: house development materially changed how things could be done? you talk about the burdensome aspect of clinical trials. guest: i think the vaccination and diagnostic is an area, one of the things are seeing as how do we do preventative health so we don't need to go into drugs. how can we identify cancer patients early? in fact, two years ago we identified there is so much progress in cancer but nobody has ever done anything in women's health. we did a thorough search globally and in china for a cure with endometriosis and fibroids and we are able to identify one company that does that. i believe we can continue to work together, u.s., europe and everybody, we can find some affordable drugs. shery: good to have you with us.

the morning session has just started here in singapore. the new economy forum is underway. michael bloomberg is speaking at the moment. we've plenty more to come on daybreak: asia. this is bloomberg.

shery: markets in mainland china come online in just a half-hour. our coanchor joins us. the rally has gone quite a long way. some key technicals we are looking at. where do we go from here? david: hopefully up. we have come up substantially, that's an understatement. we were talking one $.5 trillion in value added in hong kong and china over the last two weeks. certainly on price, ditto. the hang seng index is a good example. the latest to enter a technical bull market. the pivots people talk about, it's going to take some time. this will not go up in a straight line. there will take time for bigger issues to play out and improve. markets need that change.

looking for an entry point. short-term, a couple of things we were watching and moving to overbought levels. particularly for many of these levels, this might mean we are poised for consolidation short-term. this is where we are. it's been substantial so to speak. big items today. china tracks are still showing month and month declines which is obviously more important, sequential declines. we are getting two briefings which might act as short-term

catalyst. there is a briefing out with separate briefings also out at the same time. haidi: tencent is in focus with earnings. a bit of optimism that the next pivot might be on tech. david: hopefully so. the uncertainty when it comes to a head for example. in terms of what to expect, much of what we saw in the first quarter was the first revenue decline. more modest, but the stock is trading more than modest. we are trading at two standard deviations below the mean. is there value? if we are trading at 18 times,

that's a level we pretty much have not seen since this became a public company. back to you. shery: a very busy day when it comes to tech news. tensions, perfect timing for the new economy forum. tough choices for the u.s. and nato. haidi: we're getting those insights when it comes to what next after this missile landed. this is bloomberg. ♪

at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect. david: