>> you are watching daybreak: asia. >> we are counting down to the market opens in tokyo and seoul. >> australia has just come online. a cautious open ahead. the fed favored inflation gauge eases. landmark shift in china's covid policy three years after the first documented infection. beijing is allowing low risk patients to isolate at home. how the collapse of ftx is stoking a fight over who will regulate the crypto industry. we're just getting breaking news when it comes to inflation numbers out of korea. slightly softer than expectations. 0.1% is the declined month on month.

also slightly weaker from the gain expected of .1%. cpi rising stronger than expectations. >> we have the asx 200 just coming online. what's driving this is what we are hearing from the fed. more fed officials saying there's a need for further rate hikes but at the same time, you have more signals coming through of weakness in the u.s. economy. what we need to know in the context of that is we are seeing these moves in treasury yields and off that a pullback in the aussie bond space given that there are concerns around the recessionary outlook. let's change it on because the other story we just heard is what's happening in china specifically this landmark shift

that beijing could now be allowing some covid positive patients to isolate at home. is that going to be enough to carry the optimism into the chinese session today? in the u.s. session, we saw u.s. stocks dropping. the yen still holding around the mid-august high. >> u.s. futures are still under pressure after a lot of fluctuation during the new york session. the s&p 500 struggling with the 200 day moving average. the 10 year yield holding. a cooling labor market perhaps the u.s. continuing jobless claims at the latest level since february. we are waiting for the payrolls numbers to come out on friday but we are still watching the

pce numbers and that preferred gauge of inflation softening for the month of october. that leading to a bit of optimism but it's those concerns about a potential recession being felt across the markets. we have the opec-plus meeting but also a bloomberg survey showing that opec cut the most production since 2020 last month. fed speak is being felt across the markets. top officials, two of them are saying more rate hikes are needed to bring down inflation. the latest u.s. data is sending mixed signals about the u.s. economy. kathleen hays is here with the latest. do any of these numbers change the fed's policy tilt? >> it doesn't look like it because we have better news on

inflation. that is also -- always welcome. the headline pce deflator, that was down to 6.0%. the core pce deflator takes out food and energy. it had gone up, but now it's gone from 5.2% to 5%. i'm sure the fed is applauding that. it doesn't stop one governor from saying rates need to go higher than i thought just a while ago. >> as we approach is sufficiently restrictive level, it will be appropriate for us to slow the rate of rate increases as we determine how high we need to raise the target range until

i see our actions having some impact that would lower the rate of inflation i think my expectation would be we would have slightly higher than i had anticipated in september. >> fed officials must have watch closely today seeing the consumer spending were up 1.1% in october about double what people are looking for on the month. spending is starting up the fourth quarter 3.3% annualized rate which is not week, that looks fairly healthy to most people. jobless claims were lower on the week, but on the four-week being average, the continuing claims they jumped 57,000. that's one piece of news. that's suggesting maybe the labor market is not as tight as we thought. john williams said we have to get the funds rate up.

even austan goolsbee, a well-respected economist said recently that a 5% funds rate sounds good or make sense that's exec we what he said. >> we are looking at jobs as well. when it comes to markets, volatility is vanishing. we are falling to the lowest and more than three months. does that tell you there's a steady bullishness or less bearishness? >> it is interesting it seems right now almost no matter what any of the fed speakers say, they are all saying we expect to moderate the pace of hikes, but we expect to go higher, stay restrictive for longer because we are a long way from being

sure that inflation is when to get under control. the markets stop, they are going to slow the pace of hikes. it's like if you tell your beloved pet, i'm to feed you now but i'm going to give you less than normal. they just hear the feed you now part then they are surprised when they only get half a bowl. the surprise might come for markets, but going into jobs, you would need something pretty extraordinary i think to really disconcert matters like a drop in the unemployment rate or a surprise bump up in wages growth or stronger-than-expected pace of hiring because that has been gradually moderating. that's one of the things people have been pointing to to say the fed is starting to have an impact on the demand side of things for labor. therefore, you are going to avoid a vicious wage price

spiral. the other concern has to be and can see the cautious mood already from overnight in the states and looking like it will be cautious today in asia is jobs are a big deal. we have had these extraordinarily large moves in bonds and stocks and currencies. one thing that this year has shown is even one implied volatility comes down, we could have very strong moves both ways. we might get only a small bearish surprise out of jobs. that leads to a the other way because a lot of the rally's this week have been rather bewildering in their size. considering the apparently small shift if there is one and what the fed is wanting to do. >> when it comes to the jobs

preview, is that going to move the needle given that we keep talking about the lags that we see as we wait for the play out into the labor market? >> i have to get my concentration back, because i love the metaphor about when you tell your pet you're only going to feed them half the ball. it's quick and easy story because yes, there will be slower but slow enough to change the fed's mind one could bet probably not. the latest month 261,000. november is supposed to be 200,000. that would mean yes it's slowing down but you have to wonder why. there are still 10.3 million unfilled jobs in the united states. could that be there are jobs out there the people don't want? it's not necessarily a slowdown in labor market demand just slow down and what people are willing to accept.

we're going to watch wages very closely because they have hardly slowed down at all. desired workers are in such hot demand, people -- people have to pay up when they hire people. i think he's right. very high very low maybe you get a one day or one hour move in the market, but most people don't expect this to move the fed's current path which is 50 basis points this month then keep going higher probably to about 5% next year. >> very important for the global economy and demand picture out there as well what happening with china's covid zero policy. are we seeing more indications that we can see those curves and restrictions being eased more appropriately now? >> we're definitely seeing a pivot. you can say china has crossed the rubicon when it comes to covid restrictions. prompted of course by the displays of protests last

weekend. they do seem to be responding to that. they are pushing local officials to ease back on some of the more onerous -- districtwide lockdowns in cities some of which the unnecessary testing it taking place and other things. this will be a slow thing. it does feel as though they are trying to lay the groundwork for an exit. bolstering their plans for elderly vaccination and talking a lot about the hospitals. it will be slow, a two-step forward one step back situation. if you think about the ways that other countries particularly those the didn't have much covid circulating singapore, austria, new zealand for example, about the destruction that was caused when they started to exit. then you think about the scale of china. we're going to see a rocky road

ahead for the world's second largest economy. >> when it comes to the markets, or we finally starting to see international investors pay attention? the big surge that we see in china etf's, volumes are looking interesting as well. >> there has been so much anticipation that they would be reopening. it came along with as well some optimism that once xi jinping was installed for a third term, that he would be able to focus more strongly on some of the issues confronting the economy. you kind of expected there to be some of the flows that we have had come and in some ways, the blowup over both the surgeon covered cases and the protests in response. the fact that markets got through that and onto the other side, we had the jump and the

dump then backup. you have had a test of the thesis that this could be the turning point that so far has been passed more or less flying colors as far as markets are concerned. there's some growing optimism in some ways the biggest threat to chinese markets when it comes to an upward course right now is the parent fed pivot. if you're thinking that the bottom is in the u.s. equities of some of the other bella market equities, you might think that's a better place to put your money than china where you deftly got to have a much larger risk premium given the factors that have been a play the past couple of years. the prosperity, tensions within the u.s.. that is almost a bigger drag at the moment at china than the concerns that yes while china is opening up after covid, it's going to be a long slow and bumpy ride and quite possibly very qualitatively different to

the way that for example australia and europe and the others did where they went ok with got to a point or we are confident in our vaccines and our safeguards, so we can remove unilaterally most of our restrictions and get back to the business of doing business. china is a more nuanced situation there at least so far for investors. it doesn't seem as though the bulls are going to be running reasonably hard in china. the question is whether they get trampled by some of the flows to other markets where the concern has been what's going on with global interest rates. >> let's get you to su keenan with the first word headlines. >> we start with bank of japan.

a board member says the boj should conduct policy assessment in his first media interview since joining the board in july. he told bloomberg the right moment could come soon. he added that any review should come without expectations for results on what may follow. he is the first board member to explicitly suggest the need for a policy assessment. now to opec, the cartel has cut crude production by the most since 2020 by just over one million barrels per day by last month. the group is expected to keep supplies unchanged when it holds discussions on sunday. the eu is said to be closing in on a deal to cap the cost of russian oil at $60 per barrel but poland is still pushing to harden the package before

signing off. talks continue and the block aims to finalize the deal before sanctions kick in on monday. ahead of the imf will push china to move faster to find solutions to a debt crisis. china is the world's biggest creditor to developing countries. developing nations have amassed a quarter trillion dollar pile distressed debt. 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. >> still ahead the center for financial stability senior fellow joins us with thoughts on the collapse of ftx and how u.s. agencies should seek to protect to investors. up next, an investment group pinpoints opportunities and em.

this is bloomberg. ♪

>> more confidence this rally will continue into december. rates will go lower. jay powell commentary is right in mind with what we have been saying that they will pause in january. this is a classic fed pause stockmarket rally. >> our next guest expects the dollar to rollover and em equities to explode higher. joining us is the cio of nfj investment group. this chart shows how we have seen bloomberg dollar index fall

below key technicals. are we seeing the renewed trend of dollar weakness, a dollar collapse and where in the ems would you find opportunities? >> i would definitely not say i would expect the dollar collapse. i definitely think you will see the dollar weakened. with inflation rolling over, interest rates rolling over, i think all of those things are tied to the dollar strength. the dollar has been one of the most crowded trades on wall street in 2022. our expectation is that as you see the fed pivot which you have started to see. you have seen it in canada, london, all those things are pointing to we should get lower inflation numbers and therefore a lower interest rate. that will put pressure on the dollar. consequently, you're getting a massive opportunity in emerging markets. the reason i say that is you have already had a big dislocation in emerging market stocks because of the negativity coming out starting with china taking back hong kong early.

you have a crackdown on the education stocks then jack ma fled to tokyo. have concerns over taiwan's independence. all of these negative things plus the covid lockdowns. you're getting emerging-market valuations at the steepest discount going back to october 98. and october thousand one. if you stepped in and bought emerging markets october 2001 or october 98, you are still beating the s&p through today. it's a testament to stepping in when things are uncomfortable and moving into areas of the market where evaluations are deeply discounted for example, alibaba is trading at nine times earnings. it is a net cash position, double-digit margins. this was a highflying growth stock now it's trading as a value stock. >> when it comes to some of those names, a lot of it depends

on what chinese policymakers want to do next. do you discount that political risk that could be present any time you do anything in china? >> i think you have to diversify political risk. that is why we build portfolios, or going to build a basket so we don't have overly concentrated in one area. as you approach emerging markets in diversified ways, i would argue it should shape investor expectations. when you have low valuations, that is caused to move in and try to capture that risk premium. the macro risks a real. if you look at the u.s., facebook is down more than alibaba. there is risk everywhere in the markets. i would argue the dislocation coupled with the attractive growth potential in the cloud business for alibaa other areas are immensely attractive for investors at this stage of the cycle. plus you have the dollar.

that's another tailwind it will move higher as this continues to we can. >> are valuations more broadly adequately well reflecting of the potential for further profit erosion going into next year? >> you should expect for earnings to be revised lower. conversely, i would point to the price-to-book multiples. you are getting record low multiples particularly encyclicals. if you look at the spreads between cyclicals and defensive's, you have the widest dislocations going back to march of 2020 as well as march 2009. you have people sitting in big pharma, staples, energy and utilities and they are all pricey. others i would argue are much more discounted. for example, homebuilders is a

group that everyone has been negative on. they are beating the s&p over the last six months and the reason for that is the dislocation was so great and there is still structural demand for housing across the u.s.. >> energy has almost become an evergreen play as a conflict continues. why have you exited your positions ahead of next year? >> energy is interesting. i hear people say that it's cheap because it has low pe and high dividends. if that was the case, -- i have a hard time with the argument that they were cheap then and sheep now. energy is much more an area that should be valued on price-to-book multiples. you have energy trading at higher valuations than in the

middle of 2008 when oil was at $150. oil is down 40% and the stocks are higher. there is a big disconnect between the price of oil and the energy stocks. in addition, if you look at more cyclical areas of the market, you are seeing massive dislocations relative to energy. >> i'm afraid we're out of time, but great conversation great to have you with us. you can get a roundup of stories to get your day going in daybreak today. terminal subscribers can find it . this is bloomberg. ♪

y do so many businesses use stamps.com? they save time by printing discounted stamps and shipping labels right from their computers get a 4-week trial plus postage and a digital scale

go to stamps.com/tv and get started today

>> the bank of japan board

member says he is calling publicly for a policy assessment and the right moment for it could be here soon. let's get the details from our japan economy editor. what does this mean in terms of boj policy? could we see a review sometime soon? >> i think this certainly ramps up the expectations that boj is going to review policy next year. the idea that they can kick it after the new governor comes in in april i think you could say that is out of the window with this. we must be a little cautious if over interpreting the significance of these remarks after all it is just one board member saying this. still, for a sitting member of the boj board to call for a review sooner or later is a

significant move that's going to drive speculation of a review to come next year. let's go back a little bit, what is the significance of a review? a policy review is usually the boj's way of heralding change to come and tweaks to its policy or changes to its policy. he has hedged his comments. he said it could be sooner, could be later. we mustn't have preconceptions over what review would come up with. it could end up concluding that the current easing must continue. he did also hit that a decision of review should be data driven. he said look at wages, prices, and the economy. if there is a trigger for the review, you have to conclude that change or tweaks must come. we should see this comment also in light of some of the other

comments made by board members yesterday. we had another one of the more dovish members of the board saying we are seeing green shoots of change in inflation behavior. if one of your most dovish members is saying that on the board, there is a lot of thought going on about how the dynamics are changing. one thing can be said for sure, if we have a board member saying in public that he thinks there should be a review, that suggests there was a discussion going on behind the scenes. >> a couple of key takeaways from this, it's completely open. the idea that they could do something completely unprecedented given the nature of these policy settings. also talking about the risks to

market function, to liquidity. >> i think he said at this point you have to look at everything. i think it's way too early to speculate over what the change could be. we still don't have the review. we don't know what's going to happen. there's a lot of unknowns. i would imagine we have a new governor coming in so you would imagine this is a call that would happen under the new governor's guidance in terms of going ahead with conclusions. but i would say that if we had toured a review, at the very minimum we could expect tweaks to the yield curve control framework.

>> let's get a look at how we are trading. japan and korea markets are opening. kiwi stocks are looking pretty negative at the moment. we are watching japan futures they are flat at the minute. looking at a mixed session overall. the jobs number in the u.s. is clearly going to be the next thing in focus for clues on where the fed goes next. the dollar continuing to see some weakness. bond yields falling alongside that. little bit of slippage when it comes to risk sentiment in the early part of the session. look at futures at the moment for the s&p, pretty flat. the index was fluctuating around 200 day moving average all throughout the session.

clearly there is some tug-of-war as to where the next direction takes us after the earlier rally that we saw on the back of jay powell's comments and the interpretation we are seeing signals of a downshift in the pace of rate hikes. let's look at the crypto universe as well. it has been a big week obviously we have been parsing through the comments from sam bankman-fried. have we learned much more about what happened at ftx and what's to come? >> certainly a lot of questions being raised even after he spoke at the summit on wednesday. looking at the price action, it is being driven by what we are seeing in the broader macro landscape specifically the concerns around the fed. you can see the pullback bitcoin still below 17,000. advocates saying it could hit

$500,000 within five years. that is drop in that forecast. an outlook for regulation because we have the first of several congressional hearings taking place on thursday. ahead of the cftc facing lawmakers and calling for greater powers. our next guest is the former ftse chair. -- fbi see chair. there is a tug-of-war going on between the watchdogs here. we know that sam beckman freed preferred but who should take primary? >> the current regulatory powers are adequate for the vast majority of the market and i agree that most of these tokens are securities. there is a bit of the gap with the cftc jurisdiction. have regulatory power over derivatives but the cash market

actual crypto acid self -- asset itself, that is a gap that could be fulfilled but that's a very small part of the market. most of these assets especially the problematic ones i think fall under the sec jurisdiction appropriately. the sec needs to grab them more aggressively. >> hold on a second because we have breaking news. manhattan prosecutors and regulators of crypto firms with heavy exposure to ftx handing over information on key figures including sam bankman-fried. the southern district of new york u.s. attorney's office has recently started issuing voluntary production requests which include a long list of names of ftx employees and associates according to people speaking to bloomberg. again, ftx investors and traders have been asked to turn over

information on the company. we continue to see the scrutiny on ftx and everyone involved. when you look at the ongoing implosion and explosion concerning ftx, what are your calls for this market? have we lost all credibility when it comes to trying to build a safe environment for investors and what needs to happen at this point? >> i think this should be a wake-up call for investors. investors were not doing their due diligence, not being selective about where they were deploying their capital. investment capital most of it has gone into entities that are ranking speculative use of this technology as a quick profit. it works until it doesn't. there are other companies trying to develop the technology for real-world purposes to improve payments and settlements, improve international transfers, improve tracking collateral, title, supply chains on environmental issues.

there are a lot of good virtuous uses but the capital has been going to speculative uses. i hope this will redirect capital to the socially beneficial once and i hope this is the wake-up call to regulators that they need to crack down. there have been some efforts but it is not been enough. the technology is good. i have always said you have to differentiate the crypto assets from the technology itself. i think blockchain technology is -- it has very promising benefits for a financial system if done appropriately. >> what was really interesting to me in sam bankman-fried's conversation yesterday was he put forward this idea that it was down to unfortunate incompetence as opposed to

planned theft or any fraudulent behavior. i honestly don't know what's worse. [laughter] >> it's a little incredulous. you look at what happened, if were only going by press reports because they're going to be investigations to determine the fact. some of his own interviews going back to last spring suggest he was basically running ponzi scheme. i wrote a book called sharks camp about ponzi scheme's and maybe the folks at ftx could have benefited from this. i don't think they believed what they were doing was wrong, to take new investor money to pay off old investors, that's illegal. the shocking lack of awareness, embraced philanthropy and unethical behavior but the lack of awareness of what ethical behavior means in the world of

finance seem to be lacking with this company. it's very sad. i don't know the gentleman, i have never met him and i don't question the good intentions behind his statements but it's hard to swallow based on the reports we been getting of what's going on at ftx. >> what about the controls in place for banks carrying out transactions on behalf of ftx? do you think they were sufficient given your experience? >> i think the exposure to the regulated ftse insured banks, everybody needs a bank account to do your regular transactions. it does not appear there was any significant exposure. there has been a lot of press coverage about ftx taking a

significant investment interest and a small bank called moonstone. it's nearly as i can tell, they hadn't used the bank for anything so it looks like to the extent we were using banks it was for payments i don't think it affects the banking system at all. that's the good news. it does not really have any impact on mainstream banking or the insured banks that we all rely on for checking and savings accounts. >> the banks that did work with ftx you think it was a mistake for them to bring ftx? >> that is a really tough question because there has been a big controversy generally about whether regulators should tell banks you just can't do business with certain entities, certain markets. that's hard to do. if a business is legal, then to tell a bank not to have dealings

with them i think is hard. i am unaware that any of the entities doing business with u.s. banks were illegal. i think it's hard. it's a controversial issue to use banks to shut all of this down. banks do need to be operated in a safe and sound manner. banking relationships the post risk to themselves and the deposit insurance and, they should take notice of that. the good news on this facet it doesn't look like ftx is going to have any kind of knock on impact on regulated fdic insured banks. >> stick around because we will have more from you. terminal subscribers can go for the latest crypto prices and more news on crypto assets.

this is bloomberg. ♪

if your business kept on employees through the pandemic, innovation refunds could qualify it for a payroll tax refund of up to $26,000 per employee, even if you got ppp. and all it takes is eight minutes to find out. then we'll work with you to fill out your forms and submit the application. that easy. innovation refunds has helped businesses like yours claim over $1 billion in payroll tax refunds. but it's only available for a limited time. go to innovationrefunds.com to learn more. ♪♪ >> this is daybreak asia. a measure of u.s. inflation flagged by jay powell is perhaps the most important gauge to the outlook. it posted a slowdown last month.

prices of services, houses, energy services rose 3% in october and that's the smallest increase in three months. it offers hope that rate increases are working without sparking recession. the chicago fed has appointed a new president. he has long been seen as one of the most dovish policymakers. he is a former advisor to barack obama and will start in january. calls are mounting for the south african president to step down over a corruption inquiry. parliamentary panel investigation revealed he may have breached anticorruption laws in connection with the theft of a huge sum of money from his game form. he has denied any wrongdoing and says the money was proceeds from

the farm sales. 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. ♪ >> stay with us, the former fdic chair. one of the most challenging times for the markets and the financial system in the u.s., you were one of the early proponents to try to deal with the subprime mortgage crisis before it became a threat to the entire u.s. economy. i remember at the time thinking are these conversations difficult because of gender? because you are a woman? reading the things that you been called hardcharging, outspoken, noisy aggressive and opinionated. i would wear those as a badge of pride in many senses. however things changed? how has your experience been

colored by being the only female leader of an agency at that time? >> that's a good question. you never know for sure. i think there's a tendency to marginalize women who raise their voices. it is subtle and people who are marginalizing you are not even aware they are doing it. it's very real. i thick it's getting better, but it is still there. a lot of people just don't like women expressing opinions. [laughter] we are entitled to have opinions. sometimes we do have to raise our voice to be heard. if we are not being listen to. i always tried throughout my tenure at the fdic and my public career, i have been in many senior positions where you have to interact with others and i've always tried to work it out quietly in meetings, don't get

in public disagreements. when your voice isn't heard isn't acknowledged and you feel strongly, sometimes you need to go public and get peoples attention. unfortunately, women are forced into that position more frequently than men are. >> do you still stick to your five rules of the road? >> my five rules. [laughter] is that from my book? i can't remember what they are now. don't get emotional. i think that very quickly will marginalize you getting weepy, getting upset is always going to be a problem. thank you for putting them up. support each other's right to be heard. i tell the stories a lot about how i would be in a meeting and i would make a point. >> the last one is my favorite. >> let me stick with the second one because that's one of the most important ones.

you would say something and if you get silenced a guy would say the same thing and they would say your absolute right. when women have a point that needs to prevail, sometimes men will try to take it as their own. women even if we don't agree with each other, they should say sheila just said that excuse me. don't be in the game for credit. if you guide yourself by getting credit all the time, you're not going to succeed. it's up to you what you think is the most important for me it was, pushing an objective. i was happy to give anybody else credit who wanted it. if we could a compass that. aligned with dads, align with men. bob dole is an advocate and mentor for me, he was a big feminist. don't discount men as mentors. women of my agent generation,

that is more relevant because we didn't have a lot of women mentors back then. we had to align with men in power to help us. yes, don't photograph your neck, it's really unattractive. [laughter] >> i'm starting to get to that point. when you were in the finance sector, did you find it challenging when it came to gender roles as opposed to other colleagues in other sectors? how much progress has been made? >> i think that's true. i started off as a civil rights lawyer after i graduated from law school at the old department of health education and welfare. the federal government, i was a leader in hiring women and civil rights was a field that embraced equal opportunity and had a lot of women. and also people of color. i didn't really feel discriminated in that job. then i went to the hill and worked for the senate judiciary committee then with bob dole and

he was a tremendous feminist and advocate for women but not all of his colleagues or others were that way. then when i moved into financial services, it dramatically became more noticeable, attitudes of men in power toward women. it is, finance has become a long way. i see a lot of women in finance who i didn't used to see even at senior levels. we have a couple of women ceos, heads of the largest financial institutions. i find that encouraging. finance has gotten a lot better, but it still has a ways to go. >> always good talking to you. the former fdic chair, with very insightful comments. plenty more to come, this is bloomberg. ♪

♪ >> here is a quick check of the latest business flash headlines. nissan o says he talks with french partner every day as they work to shape their alliance. they may announce a new deal for their troubled partnership as soon as next week. talks began earlier this year as the automaker works to lower its

stake in nissan over time. >> would like to go to the next step. how we can make ourselves be more competitive and how we can make ourselves more growth and presence in the next difficult era that we are facing. this is what we are discussing every day together. shery: tsmc sets out for more advanced trips in its new -- advanced chips in its new plant opening in 2024. they were forced by clients including apple to make the more advanced chips at the u.s. plant. these are the stocks to be watching in the opens in korea and japan. of do keep an eye on the world cup related stocks in japan. this is bloomberg. ♪

(announcer) enough with the calorie counting, carb cutting, diet fatigue, and stress. just taking one golo release capsule with three balanced meals a day has been clinically proven to repair metabolism, optimize insulin levels, and balance the hormones that make weight loss easy. release works with your body, not against it, so you can put dieting behind you and go live your life. head to golo.com now to join the over 2 million people who have found the right way to lose weight and get healthier with golo.

♪

shery: this is daybreak asia and we are counting down to asia's major market open. reaction with a mixed data we got ahead of u.s. jobs numbers. as we are getting the latest china covid cases with beijing reporting 3942 new cases for thursday. haidi: in a way with bracing for how high these numbers can go, given that they started relaxing some of these key restrictions, including letting some people, some patients isolate at home, really a very big shift away from the core tenant of china's covid zero, which has been to limit the case numbers at all costs. and if history is to be repeated, we will see the escalation of case numbers. let's take a look at how we are setting up as we get to the market open. annabelle: yes, we have the open

of japan and korea and the open of cash treasuries. we are watching moves in the two year yield here given it dropped to a one month low in the price session. what is driving action and the treasuries market is what we are hearing from the fed and specifically, more officials now calling for the need for further rate hikes in the months ahead, even as we see additional signs of weakness creeping into the u.s. economy. recession fears are rising off that, so given these moves in coming into the session in asia, we are looking fairly risk off, particularly watching the open for japanese stocks declining at the start of trading. and the yen holding fairly steady now, though just a little further strength coming into the currency. we also heard from the boj board member giving bloomberg his first interview since he became or entered the panel in july, saying there is a need to address or review the boj policy settings. let's change now to what is happening in korea, because we

had inflation data also out earlier, slowing more than expected in november. that was due to a base effect highlighted by the governor earlier. so it does really indicate to us that the be ok will be forced to keep tightening. we are still seeing stocks looking weaker and keeping an eye on course on the korean yuan given it did strengthen past the key 1300 level in the price session for the first time since august. in the australian session we've got the asx 201 hour into the trading day and we are risk off today as well. being led lower by rate sensitive sectors, real estate, financials, leading the losses. keeping an eye on what is happening in the crewed space, given we do have the eu closing out on a space deal to cap the price at $60 a barrel. shery: our next guest says the inflation tide is turning. joining us now is asia equity strategist at j.p. morgan. always good to have you with us.

but of course, despite the fact that we are trying to gauge where inflation is headed with all of these numbers, it looks a little bit mixed. we do not know how quickly, how low inflation could get. so what is, for you, a better clue, in order to gauge where the fed is going? >> to be honest, we are all looking at the same data, the same analysis. we are looking at the same historical models and they can only tell you so much. if you look at j.p. morgan's forecast, we have inflation coming down quite substantially over the course of the next 12 months. if you look at simply chill -- sequential inflation we saw a spike from mid-2021 all the way until the end of quarter three this year. after that, it has subsided quite a bit. headline inflation. it is going to stay there by our forecast. if you look at the various components that chair powell has

talked about, the key lockbox in that core inflation picture is what happens to services and housing. and there are so many different parts to which that we do not have good models to forecast. it remains something that we will be watching. the reason i say this is because it is i far going to be the biggest factor that will drive equity outcomes in 2023. as it has been in 2022. if inflation really does come down, things will start to recover. shery: what about china's reopening? are you looking at that also in the sense that we could see more demand and also adding to inflationary pressures or is this just a net positive? mixo: china demand, if you thing about the reopening process, equity markets obviously price that in faster. the real impact on actual consumption and demand by our

estimates is going to take at least a couple of quarters to show through. once the reopening is at least domestically opening. we are in the initial steps of heading in that direction, so it is going to be some time before you start to see upside pressure because of china reopening. and it's a good thing that you bring it up, when you think about it here, inflation is the starting point. so if it goes by our forecast, there is some hope it could do next year well. there is a lot of cross current in the u.s. earnings and growth, they are going to be forward next year. we see downside risk. worse is what you are seeing in china, the reopening. the key theme is going to be convergence for next year. haidi: what currency assumptions are you making for next year, particularly pertaining to the fate of how eem basket might perform?

mixo: yeah, so, there are dollar forecasts in two q. but it does not really come down that much, so all in all, i would say there is a strong dollar camp. if anything, some of the currencies with the deficits, the low levels, are probably going through a volatile first half of the year before we start to see it. so in asia, the business cycle is starting to improve. usually when this happens, when the global cycle is improving, markets tend to do a little bit ok, 10 to 15 percent upside in that phase. that's what were seeing now. toward the end of 2023 you will probably start to see the global side picking up as well and that is when the dollar really comes out. haidi: when we look at the

market reaction to the downshift from the fed, it seems to ignore the expectation at least that has been set that at the same time we are going to see rates stay higher for longer, right? do you see vulnerabilities across the corporate sector? and what sort of stocks or sectors are you looking for for resilience in the margins? mixo: yeah, so when we think about stiles, are to stiles are value and quality. the reason for value is the asian sector is improving so you do want to have that exposure. but quality is for the fact that the global cycle is deteriorating. and quality compensates for the question that you asked, which is if the rates stay higher for longer or at least high for longer, which is our best case assumption. we do not have u.s. 10 year for

instance coming down substantially to these levels. and if that happens, the short-term debt tickets refinance next year will be at a much higher level. so if you look at credit conditions in asia, even though on aggregate, it is not a very big risk, you will see earnings erosion in certain capital markets, because of these higher refinancing rates. that is the short-term it that gets rolled over. and you can look at stocks and sectors that get affected by this. so it is mostly in the utility in industrial sectors in india and china. haidi: the other thing that you see constructive going into next year is beneficiaries and these deglobalization. what were they look like? mixo: when you think about near shoring, you are thinking at the moving of supply chains. to various regions, right. one is the geopolitical reason

for trying to be more diversified, wanting to not separate it in one area. and the domestic political need in the markets to reassure more jobs back to the home markets. the combination of these three things is driving the deglobalization process and most of the supply chains. there will be some companies that benefit and markets that will benefit from a higher industrial production, higher equity coming to their shores. that would be on the positive side and on the negative side, you will see many of these companies that have benefited historically from globalization start to see a reversal. many companies that have productions, very automated production will basically move those or end up moving to a higher cost production base. haidi: always great to chat with

you. asia equity strategist at j.p. morgan. let's get you to su keenan with the first word headlines. su: thank you. let's start with the u.s. measure of inflation. that is actually flattened by fed chair jerome powell as perhaps the most important diet to the outlook. this gauge posted a slowdown last month. lest increase in three months and down from 8.5% jump in september. hopefully weight increases will work without sparking a recession. the chicago fed meanwhile has appointed austin woods be as its new president, he reproves is that she replaces the one who is retiring. he is seen as one of the most of age -- dovish policymakers. he will start on policy decisions beginning next year. the eu is set to be closing in on a deal to cap the price of russian oil at $60 a barrel. sources from bloomberg say it is

a sanctions process that needs to be signed off on. they hope to finalize the deal before oil sanctions kicking on monday. in the area of oil, opec has cut production by the most since 2020. curbing supplies by over one million barrels a day last month. group leader saudi arabia led the production and the uae also cutting output substantially. they are expected to keep supplies unchanged when they hold discussions virtually on sunday. global news 24 hours a day on air and bloomberg quicktake powered by more than 2700 journalists and analysts and more. i'm su keenan, this is bloomberg. haidi: let's get you to annabelle for some of the movers. all of my japanese friends were so excited today on that surprise win over spain. do we see that exuberance flowing through to stocks as well? annabelle: well some of them,

yeah. and certainly, it is great news if you are in japan today, because basically as you say it was a surprise win. they beat spain and that means they are advancing to the next round of the world cup. so they basically finished at the top of their group and they will be going up against croatia now in the knockout stage. in terms of market reaction, we are seeing a strong move higher for cyber age. they are broadcasting all of the games onto their streaming service for free and they've also got the sports apparel maker moving to the upside of these stocks year, a little in the red but a risk off session across asia this morning. haidi: i will take it from here. we will get an update when it comes to china's moves away from covid zero and the council of foreign relations sells is why they are worried that there is no roadmap for an orderly transition. coming up next, we will be

discussing economist call. he says u.s. china relations may have gotten worse under president biden that during donald trump's term in office. this is bloomberg. ♪

♪♪ this... is the planning effect. this is how it feels to know you have a wealth plan that covers everything that's important to you. this is what it's like to have a dedicated fidelity advisor looking at your full financial picture.

making sure you have the right balance of risk and reward. and helping you plan for future generations. this is "the planning effect" from fidelity. haidi: beijing is taking a another step away from covid zero by allowing low risk patients to isolated home. let's great straight to the chinese capital. executive editor john is with us. this is a significant step in this shift away from covid zero that we are starting to see. john: it is. so in the past, anyone who was infected, even those without any symptoms would be taken to an isolation facility, taken to a hospital or one of these

makeshift hospitals that have been built recently. it was something that people dreaded, it was something that people feared or that the virus itself -- more than the virus itself. now that beijing is starting in the district which has been the center of this most recent wave, starting their with intentions of spreading that to the rest of the city will allow people either because they have a specific medical condition such as a woman who is pregnant or because they are strongly opposed to going to an isolation facility, as long as they do not have underlying conditions and remain relatively healthy they will be allowed to isolate at home. if beijing does that, you could because it is the capital, because it is the political center of china, you could see cities around the country beginning to adopt similar policy. that would be a drastic change in a way that covid zero is executed in china. shery: among the public are the frustrations over the covid restrictions bigger than the fears about covid? we have seen

beijing for the last three years control the narrative over how severe this virus is. john: i think the government is obviously taki address some of the concerns that were voiced by the protesters. i do not think the government is going to -- this is not the character of the chinese - this is not the character of the chinese government to take a big bang approach to these things. we will see a gradual step-by-step move towards an exit from covid. even the vice premier saying we will take little steps. that is the way forward. i do not think that would have appeased the protesters by itself. obviously the strong police presence, be warning from officials about clack -- cracking down on disruptive forces, the combination is what has kept protesters off the streets. shery: bloomberg's jean-luc with the latest on covid-19 in china.

let's stay with the country because economists say that china's relations with the u.s. are no better under president biden then they were with donald trump. and may even have gotten worse. bloomberg's charlotte yen spoke with him about this. tell us more about his assessment. charlotte: stephen roach says the relationship is in serious trouble and he is worried about further escalation of tensions and less washington works seriously enough to get it, finding a solution to the conflict and new ways of engagement. he sees biden being tough on china because he is not reversed any of those china policies under trump's administration, while pushing allies to join the u.s. in cutting out china's access to advanced chipmakers. so his messages china is not a country for you to live without,

you need to be careful of not putting all of your eggs in one basket. let's hear what he has to say. >> china risk is something to take seriously. look at apple. apple has made the biggest bed of any u.s.-based multinational on offshore production and assembly in china. and you know, it is a bet that apple is now hedging with starting, just starting to make iphones in india. haidi: what about the outlook for the chinese economy, what risks does he see them? charlotte: he sees concerns, the way that the countries manage the virus. and it's on a crisis but he sees those are the short-term issues. the economy can recover from them. he is more worried about longer-term things, the

shrinking of the population, as well as weakening productivity. and in particular, he is very concerned about some policies that he sees as inappropriate and killing the country's entrepreneur spirit. so he is worried about if the country is truly enough, delivering indigenous innovation that is so key to productivity. >> the growing concern i have about china's ability to truly deliver on indigenous innovation. it is not trust the limited available at of advanced some conductor chips, but it is the pressures that are now being brought to bear on what had been the most dynamic sector of china. shery: and of course that was david speaking with charlotte. you can get a roundup of the

stories you need to know to get your day going in today's edition of daybreak. bloomberg subscribers can go to dayb on their terminals. also on the mobile in the bloomberg anywhere app, you can customize those setting so you get the news on the industries and assets that matter to you. this is bloomberg. ♪

haidi: let's take a look at how futures in europe are opening up. as we see this positive momentum when it comes to european equity stocks, they are rising to the highest since june on optimism of china reopening on covid zero. those dovish remarks from fed chair powell, we are seeing u.s. stocks down by a 10th of 1% but that along with japanese dax close to 20% above this year's lows in november, we are seeing a number of european indices really propelling towards bull

market territory. dax futures are softer and europe up by 7/10 of 1%. we have seen those rate sensitive sectors, the likes of tech, financial services, real estate among them, those outperformance. the laggards remaining energy as well as banks. euro-dollar holding steady as we continue to see some of that weakness coming from the u.s. dollar and even just taking a look at u.s. verse euro equities, that performance gap is starting to close as well. the comeback just closing the divergence with u.s. equities after what has been a pretty difficult year for european investors. shery: let's turn to some corporate news. gm ceo says the carmaker will be able to make its target of selling a million unit in north america and china in three years. mary told us more about their plans to drive sales through greater adoption of electric vehicles and making their own batteries. >> we made that statement and

set that goal for ourselves that we will have the capacity to be able to sell one million units. very quickly in china by 2025, we think that the strong product we are building and we're going to have a different price points, from the cadillac to the hummer, the shelby silverado, gmc sierra and the chevy equinox and blazer, we are going to have the products across the market. it will allow us to achieve that measure. we think we've got the right plan. this was all in place before the incentive package came as a part of ira, but we think that will help. it's doing it like it was supposed to -- what it was intended to do was intended to do is drive tv adoption and we have invested in the united states, creating jobs which will create a stronger economy. so it is going to accomplish the objectives and, you know, we happen to be bearing in mind that the plan was one we were already executing. >> dittos help margins?

-- do those help margins? >> if you think about it from an electrical vehicle perspective, the battery is the most expensive piece. we are improving the battery technology. general motors is in a leading position or among the leaders from a cost perspective. our plant in ohio is producing cells, so that is a big advantage that we have with a plant coming the next year and the year after. that is going to be important but to really get all companies and consumers to move forward to eeev's, i think this is very important. so yes, we think it will be helpful and allow us to continue to invest in the united states. haidi: gm ceo speaking to carol massar. let's get a quick check of the business flash headlines. nissan's ceo says he talks with french partner every day as they work to reshape their alliance. renault and junior partner

mischa bc motors may announce a new deal as soon as next week. talks began their this year as the automaker works to lower its stake in nissan over time. >> alliance would like to go to the next step. how we can make ourselves more competitive and how we can make ourselves more growth and presence in the next difficult era that we are facing. so this is what we are discussing every day together. haidi: tsmc is set to offer more advanced chips than it had planned to with its new $12 billion plant in arizona opening in 2024. the firm was forced by clients including apple to make the more advanced chips at the u.s. plant. tsmc is expected to announce the new plan when president biden visits next week. wells fargo has cut hundreds more mortgage employees. at the latest messy reserve reductions across the industry. the wave of layoffs comes as the

fed continues to hike to tame inflation, pushing mortgage rates to their highest in two decades. refinancings have dried up with some potential homebuyers being sidelined. coming up, some of the world's biggest banks are sounding alarm bells with new rounds of costs and job cuts. we have the details, this is bloomberg.

>> this is daybreak asia. i am su keenan with the first

word headlines. the head of the imf will press china to move esther on finding solutions to a mounting debt crisis in coronations. this when she visits beijing next week. china is the world's biggest creditor to developing countries and has faced criticism for its perceived lack of engagement in a global effort to reduce debt burdens from emerging markets. developing nations have amassed a quarter trillion dollar pile of distressed debt. the united states meanwhile has issued sanctions against three individuals over north korea's weapons program. the u.s. treasury says they have provided support for development of weapons of mass destruction. north korea has fired off a record number of missiles. the u.s. and allies focus on russia's invasion of ukraine. bank of japan board member yogi says that the boj should conduct a policy assessment and his first meeting interview since joining the board in july.

they told bloomberg that the right moment could come soon. he added that any review should come without any expectations for its result and what may follow. they are the first board member to expensively suggest the need for a policy assessment. chinese president xi jinping has called for a political solution to the war in ukraine. european council president. they say in the best interest of europe and asia the eu is counting on china to contribute to ending russia's brutal invasion and occupation. finally, calls are mounting for south african president to step down over a corruption inquiry. parliamentary panel investigation has revealed he may have breached anticorruption laws. this in connection with the alleged theft of a huge sum of money from his game of farm. they have denied any wrongdoing and insist that the money was proceeds from the farm sales.

global news, 24 hours a day. on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm su keenan. this is bloomberg. haidi: as recession fears continue to grip world economies, banks and brokerages are cutting costs and laying off workers. jeffries has issued a warning when it comes to bonuses and wells fargo firing hundreds more employees in the mortgages business. let's bring in bloomberg's finance editor adam. what are we seeing and what are the broader trends across the market impact? adam: as you know, it is very tight. what this is showing us is even within these areas of banking, there needs to be further cuts. in the case of credit suisse, for example these cuts are centered around debt sales. and a lot of this is the typical plain vanilla bonded trailing desk kind of activity, where they are saying this is part of our oval all global strategy of

cutting back our workforce. but we need to trim down physicians in that area. in the case of well fargo and the news that we heard it is more related to the mortgage market. the fact that things are getting a little bit tighter going into next year, so wanting to bring back some staff overall headcount. but the broader picture is there is so much uncertainty. thanks and in deed other companies do not want to be left with too much fat around the edges. they are being proactive and using this has a way to trim down physicians heading into next year. shery: not just positions but also bonuses. adam: well, of course. bonuses, the hot topic in a much watched area of focus we get to the end of any calendar year. a budget drawn out for next year. but the points made by the jefferies ceo and president are quite pertinent because they use

the phrase of its can be a difficult bonus season. i think that tells you a lot, not just what is happening at jefferies but while it is happening at banks globally. in this part of the world a lot of these employees are not going to be able to go into this round of bonuses and expect the kind of pay rises as they might have got in the early part of this year no, it is going to be particularly acute in areas like advisory. if you look at the projections. i think those bonuses can be down in the order of 20% on what those kind of staff would have got this year. and indeed in the underwriting area, it may be down by as much as 45%. so clearly material differences in bonuses this year. heading into next year compared to what staff in these areas have been receiving in the last year or two. haidi: it is a far cry given the battle for talent post-pandemic.

what thematic are we looking at when it comes to staffing going into next year? adam: i think good people will continue to get looked after at the banks. so it is really a question of how you have an overall strategy which continues to reward those top performers. and a lot of cuts that we have seen a global investment banks at this time of the year fit into what they are doing most years. there has been a bit of delay with the pandemic, but typically, it is not uncommon for that chunk of the workforce to get cut. and money be given to the top performers. we have that broad structure going into next year but especially in the u.s. with the economy really going into a tough time these companies don't want to be in a situation where they got any fat left over in these areas. so it's a very tough environment really for banks. this is a demonstration of that.

haidi: bloomberg's finance editor adam in sydney. let's get you to the markets. what do you see? annabelle: picking up on what adam was saying, generally the economy heading into a tough time because that is playing out in the rates market as well. we have been watching treasury yield curve inversion as a reliable indicator of recession but broadly, we have these expectations now that the weakness we are seeing in the global and u.s. economy is going to be supporting the fed to shift to the pace of is fed rate hikes into a lower gear. that is playing out and what we are seeing in the 10 year yield, trading study today, but in the session as much as around 10 basis points. back to that 3.5% level, which we have not seen since the end of september. that also cause the pullback that you can see in the dollar index and we are seeing it play out in the activity and bond space. let's change now because certainly these moves now are also driving the direction of

bond markets, rather equities at the start of trade. 30 minutes into the session now for japan and korea, the tone is risk off. the question is whether we will see any bounce from what is happening in china. we did not have a great lead-in in the u.s. session but still, sherry, there is that question about beijing relaxing covid restrictions by allowing some covid positive patients to isolate at home. will that be enough to keep pushing the chinese markets higher? shery: we will be watching out for the open. in just a few minutes, but first let's turn to japanese company pushing for grace to comply with the biden administrations challenging economic environment. economist tells us he is pitching from a bigger subsidy considering the size of their investment in the u.s. market. >> first of all, i would like to say that this shows the

visibility of further electrification in the u.s.. in the mid and long term, we think this will be helpful. in the short-term, the recognition that we have a lot of challenges. but we have a strong commitment in our investment in the u.s.. we have announced $500 million and coupled that with 250 and a total of $750 million in this market to further penetrate our ev, to demonstrate to the customer what value you can give. >> short-term is hard, longer-term, it makes her investment visibility more predictable for nissan? >> that is what we have to design and of course, i take a good opportunity for us as nissan further to enhance our strategy in this market. by the way, we also announced our admission to 730 which is a pillar of the strategy. the u.s. it is a very important market for us.

we would like to see how we can invest in this country to have r-value be accepted by the customer. >> the europeans though are a noise. good morning, sir. you say that the playing field is not level. it does it create an uneven playing field when it comes to carmen effexor is around the world? >> well, i would say that the speed of each market is varies, especially with the goal of electrification for each country. so as the oem like us, we need to find a good pace, how we can further design ourselves to give the value to the customer. that is what we are working on. economists say it is very difficult and challenging by the way. we have not seen this kind of yen dollar situation in the past i would say 70 years. at least 30 years, so we need to balance ourselves and how we can keep our presidents -- presence,

it's going to the most port challenge. as we focus on the next year. >> would you like a stronger again next year? is that what you're hinting at their? i get why. >> know. i would say it this way. we are not looking for it. it will be difficult for operation. we need to have some stability, because the exchange rate will trigger some of the bond market cost increase as well, which is what we are facing today. we would like to have a more stable situation in order for us to be able to plan and medium and long-term. as you are away, it takes more years to plan when it comes to vehicle life. >> to that point if you are going to commit more money to say the u.k. or europe, what kind of package or subsidies would you want to see to get there? >> i would like to see further how we can make the customers to

enjoy our vehicle and what kind of subsidy we can work with the government. we have committed already that we are going to invest in the electrified vehicle for the next five years. which we say last year at level. 2 trillion japanese yen. we further would like to enhance our -- or demonstrate our electrified vehicle to be accepted by the customer. plus, the goal is to get the ax customer to accept. haidi: nissan ceo. our next guest says the chinese vice premier's remark on covid is a signal to move away from current policies. we will discuss the uncertainties with the execution shortly. this is bloomberg.

haidi: it is exactly three years since the first documented covid case in wuhan. chinese authorities are finally seemingly start need to loosen their grip. our next guest says with no plan for an orderly transition, a move away from covid zero may trigger a nationwide search in cases. let's bring in a senior fellow for global health at the council on foreign relations. great to have you with us.

even with an orderly plan, it seems inevitable if you take a look at the examples of what australia went through, what singapore went through, these were health systems that had relatively low cases one restrictions were relaxed. we saw a big surge in a lot of disruption. i'm wondering what that looks like on a scale as large as china's? >> when china relaxed covid control, they reduce the cases that they had. yanzhong: few people had exposure to the virus. and the vaccines which mostly chinese people used, preventing the infections. so it would not be surprising to see a rapid search in cases. the question remains to what extent those vaccines -- remember china has a 90% vaccination rate nationwide, to what extent does that where we

get back to zero cases and death? so far they trust -- the pills give people a sense of optimism given that more than 90% of the cases recorded in november, for example, are actually a symptom added. and there have been fewer cases since then. haidi: the communication aspect is really interesting. we know a lot of risk in execution, not just public health, but really any public policy lies in china. is that a big risk that we could see over reaction, misinterpretations? yanzhong: absolutely. weighing on the central governments cyclical policy relaxation, even though you want to optimize the zero covid strategy, making the policy work better and more effective. and that could be amplified at

the local level. and you can see this gap between the central. when they are facing the threat of social protests, i think the threats of punishment for not complying with zero covid will be significant. they will become a less credible. so that is been the threat to the structure at a local level. the local government may have less extent to the zero covid approach. they may relax the policy. that, i think, will make it an orderly and smooth transition less likely. shery: we are getting the latest. the covid case numbers for thursday coming in at 5839. earlier, we had the number, 6472. again, really still staying in the thousands when it comes to

those infections continuing across china. how important is it for vaccinations to be accelerated, especially among elderly people in china? does it concern you that we did not really get a mandate for this? yanzhong: right, i think the potential surge of cases, it may affect the elderly population, which a lot of those elderly are not vaccinated or are under vaccinated. talking about the population age 80 and over. 40% of those people are under vaccinated. so this is the main concern that we recall. but earlier this year, 95% of the deaths were elderly. so the government wants to encourage the elderly people to get vaccinated. they have i think been flagged

to accelerate the vaccination of the elderly. we just don't know to what extent's there will be a mandate. how long that will be. i think one of the concerns that the policy relaxation may lead to a rift, china policy before it completes vaccination of the elderly. shery: beijing allowing people to isolated home, how much will this help the health-care system if we do see is that overload of infections? what more needs to be done to beef up the health care system across the country? yanzhong: well, i think that will help. the health care system. allowing more people to home quarantine at home.

but those who do not have the conditions can home quarantine. so there is pressure to build more makeshift hospitals. shery: good to have you with us. senior fellow for global health council on foreign relations. plenty more to come. this is bloomberg. ♪

haidi: sydney will see a new attraction open on its famous waterfront this weekend. the public will get its first look at the sydney art gallery and tended to match the likes of london or the louvre in paris. paul allen takes a preview. >> its creators are calling it an attraction to rival the sydney opera house costing $250 million. it is touted as the biggest cultural investment since the opera house open almost 50 years ago. >> finally we get a chance to conceive and construct the museum that is entirely a 21st century space. paul: announcing its modern credentials the gallery runs on renewable energy and a sustainable addition to sydney's waterfront. >> these people can enjoy the art with the nature and sky. so this is a very special

experience, i think. paul: one of the most special experiences can be found underground at the tank, which once served as a world war ii era oil bunker. access by a modern staircase, it's in structural structure has been maintained creating large-scale exhibitions to rival the turbine hall at london. it is taken more than a decade for the vision of the gallery to become a reality but with global travel and tourism starting to come to life again, the timing may end up being perfect. paul allen, bloomberg, sydney. shery: remember earlier this week, we were talking about the best of more cities to live in it, and new york was not great. i cannot catch a break because there is this new report by the intelligence unit and new york is making as the most expensive city to live in the world, together with singapore. out of 172, we are talking about the most extensive city, this is

not great. haidi: it is both not great to live in, but also super expensive. a great combination of factors. i love new york city. shery: to visit. not to live in. haidi: sydney is also right up there though, jumping into the top 10. singapore, you mentioned it before, i had to point out that every time we get this cost-of-living index, i have to point out singapore is always skewed by the cost-of-living because of how excessively high and expensive it is to own a car. and not a lot of people actually own a car, so the expansiveness of that is actually by design. so really interesting. tokyo and osaka coming down as interest rates release data low there. also how cheap the yen has been for most parts of this year. the syrian capital of damascus the world's cheapest places. the six most expensive chinese cities all actually went up. shanghai is in the top 20, so this of course, despite we know

the cyclical nature of the economy. and of course borders remaining i was quite surprised how in singapore there were no cars around. getting to the airport was easy. shery: overall, asian cities cost-of-living's did not go up as much as the global average, globally 8%, asia about 4%. of course really tying into the whole inflation narrative that we have been talking about. here is a quick check of the latest business flash headlines. hsbc reportedly cutting as many as 14% of its senior operations managers worldwide. citing sources that the move is to streamline management, reduce costs. the cuts are said to be global and across business units. they affect positions with a title of chief operating officer. china is the latest mainland property developer to announce plans to sell shares. it says the proceeds will be used to fund property projects

replenish capital and repay debt. chinese property firms have been announcing sale plans in the days since beijing lifted restrictions. coming up, tim of goldman sachs tells us why china's reopening in 2024 local economic recovery will be prominent themes for next year. we will be discussing china's covid policy further as well. the policy shift that is the property outlook for jd.com's chief economist. and later on, we speak with the philippine central bank governor full ebay to discuss his plans for a steady base of rate tightening as we get more dovish overtures from the fed. that is a fort detrick asia. market coverage continues with the china open. this is bloomberg. ♪

at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect.