>> you're watching "daybreak: asia." >> we are counting down to the market opens in tokyo canceled -- tokyo and seoul. >> president biden, confirming a further the $2 billion in military aid as well as an act for, treat. >> to continue to defend their country against russian aggression as long as it takes. >> also had -- also ahead, wall street rallies on strong earnings and consumer confidence. the pboc, with further support for the property sector. bankman-fried, extradited from the bahamas to face criminal charges over the ftx collapse. >> we have the open of the asx 200 at the start of trade,

moving to the upside. we are extending the rally coming in to a second day. given the lead and we had from wall street, investors, lacking certain corporate earnings. the likes of nike among them. no fed officials speaking this week. absence of commentary on the hawkish path ahead. bhp is certainly one of them, those companies essentially moving ahead with the acquisition, bhp's largest acquisition since 2011. . we are watching bhp, as it starts to trade at the open here. in terms of other movers -- bhp, unchanged. we are seeing aussie bonds looking fairly muted in the session, as well as the aussie dollar trading flat today, after rising .4% in the prior one. taking a look at the broader market outlook, we are also checking what's happening with the yen, pulling off a little

bit from the key resistance level of 130.41 it last reached back in august. we will reach 125 to the dollar by january but today this trading, fairly flat. holiday trading is also playing into this liquidity. otherwise, stocks looking quite a bit high today. also seen kiwi stocks trading on the upside. there is this support for the property sector and the lead in from wall street. >> we are seeing u.s. futures also remaining supportive afte consumer today. consumer confidence, rising to the highest level since april. we also had better than from the likes of fedex and nike. that really helped propel stocks today. the nasdaq 100, gaining ground for the first time in six sessions. treasuries, also studying a little bit, the 10 year yield around 367. wti prices, also gaining ground

today. news that the stockpiles in the u.s. fell last week more than expected. a little bit of historical fact when it comes to the u.s. stock market as we head towards 2023, if history is any guide, we could see stocks rising because only four times since 1928 we have seen two consecutive years of losses. but if we do actually lose ground, it could get bad. we are talking about average losses for the second year of 24%. >> we are watching geopolitics as well. one of our top stories -- president biden welcoming volodymyr zelenskyy to the white house, as the ukrainian president seeks to firm up u.s. support for his country's defense against russia. >> me, as the president, there's no compromise as to the territorial integrity of my country. the payback for all the damages

inflicted by russian aggression. >> let's bring in our u.s. government reporter, emily wilkins. we are looking ahead to the address from the ukrainian president to congress, with the one wearing -- with unwavering support from president biden, bowing to support ukraine as long as it takes. >> he continues to support ukraine however long the invasion takes for what ukraine does need. we continue to see financial help, help in terms of missiles, military equipment, and in terms of aid. you are going to see that commitment from congress as well. their here and spending bill -- year end spending bill includes $45 billionin aid to ukraine. a continuation of what we have already seen from congress at this point. the big question is, what is it going to look like with divided

government beginning next year, now that republicans are going to be taking control of the house? there's a lot of concern you are not going to see the same level of support once republicans get into charge, kevin mccarthy, potentially online to be the future speaker, said he doesn't want to cut ukraine a blank check. that's not all republicans. mitch mcconnell has said the support for ukraine is a huge priority of his. i think there's going to be some real questions about what future aid looks like and how much is going to be -- it's going to be. >> tell us about the importance of the patriot system. that came up a lot during the press conference today. >> for biden, for the white house, their relationship with zelenskyy, and other nations on board, it's been a really key thing for the biden administration to make sure that the u.s. is not only supporting ukraine, but that a lot of the u.s.'s allies are also doing that. a lot of what biden has done

with his trips and diplomatic meetings has been trying to make sure that ukraine does have that international level of support. another thing we are looking for tonight with zelenskyy addressing congress is sort of making his page about why they do need to keep supporting him -- pitch about why they do need to keep supporting him, and it comes down to democracy. the call that a celebration of democracy, that is the term she is framing it as, and that is what we are going to be hearing a lot more tonight one zelenskyy's speech gets underway around 7:30 p.m. >> emily wilkins there, joining us from the capitol. we have special coverage of the address to congress later today coming up at 7:30 p.m. eastern, 8:30 a.m. hong kong time. you can turn to bloomberg for more to get commentary and analysis from bloomberg's expert editors on tliv.

asian futures pointing higher after stocks rally for a second day improving consumer confidence, not to mention better than expected earnings. let's delve into the global market moves. for more let's bring in our chief rates correspondent for asia and live contributor, garfield reynolds. a little bit more calm today on the markets. also treasury setting after that boj shock move. >> it took a while for the ripples to calm, but they have at least for the moment. as you mentioned earlier, the lack of fed speak helped. you can see markets in general moving back towards a sort of relaxed, dull posture that we sort of expected would happen this week, because very strong expectations were the boj would not do anything until all the event risks for the year had already passed, between the other central banks. now we've definitely got all the event risks out of the way,

it would seem. at least the scheduled ones. so we've got a slight tick backup for treasuries. they snapped a three day slide. we've also got equities bouncing back, probably a bit harder than treasuries. there will be plenty of people out there saying, this is a buying opportunity, because things look cheaper now. surely we can't get two years of declines in a row. we will see what happens in the coming year. because there's still plenty of risk out there. >> when it comes to the continued move up -- the moves across japanese assets, what would be the catalyst?

you'd assume they are comfortable with how the market had reacted. >> the big question is, we might not see this until the new year. what sort of flows back from that $3 trillion or so that japanese investors hold abroad, what sort of flows do we get back? you might not get that many flows in the next couple of weeks. why? we've got everything liquidity. is this the right time to be moving money? you might also have some end of year rebalancing shifts going on. it might make you uncomfortable about moving much at the moment. a lot of this -- some anecdotal evidence has been hold cash because it wanted to pick the right moment to bring it back and they didn't want to bring it back too far, too fast. looking for those flows, what happens with that, looking also for what happens very much with

swap rates rather than with bond yields. bond yields are a little bit constrained because the boj earns so many bonds. more than 50% of the market. 10 year swap yields have gone significantly higher than 10 year jgb yields. the divergence there is going to speak a lot about how tension remains, how strong the expectations are that the boj is going to be forced to move again or a mental yield curve control or take other steps -- abandon yield curve control or take other steps, technical moves. a fundamental shift towards higher rates or tighter policy. >> our chief rates contributor, garfield reynolds. let's get to vonnie quinn with the first word headlines. >> president vladimir putin

says russia has no limitations on military spending for the war in ukraine. putin urged the military to deliver on his declared goals with the invasion approaching his 11th month. russia's defense ministers think russia should expand to 1.5 million troops. xi jinping has told former russian president -- the former russian president his nation would like to see talks on ukraine. the remarks come as beijing tries to improve ties with europe. cctv says xi told medvedev china has been actively promoting peace and talks. beijing has avoided directly criticizing russia over the war in ukraine. president xi, also reportedly exchange and regulatory messages with australia on the 50th anniversary of their bilateral dramatic relations. xi told australian leaders a stable and healthy relationship is on the interest of both nations. australia's foreign minister was in beijing this week for the

first such visit in four years. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. ♪ >> still ahead -- oliver wyman expects weakness in exports and a stronger recovery of the chinese economy in 2023. that discussion, later this hour. first, why they have good feelings on china's gradual exit from covid zero. founder jay pelosi -- dpw founder -- tpw founder jay pelosky joins us next. this is bloomberg. ♪

>> take a look at how asian futures are trading at the moment. we are seeing brought upside for markets across asia, with the kiwi stocks right now gaining 6/10 of one percent. nick a futures are slightly higher -- nikkei futures are slightly higher after four or five sessions of losses. the asian regional index has also lost ground forfour or five sessions . there is some time for upside now that we have seen significant pressure around asian equities. our next guest says asia seems to be moving at speed with china's exit of covid zero and

also the boj's yield curve controlled week. joining us now is jay pelosky. tpw founder and advisor. to say we could see a bull market for japanese stocks of investors actually change their capital flows away from fixed income, given that week? -- the tweak? tell us about your optimism across asia and what you like. >> let's start with japan, a lot of people are talking about the global allocation flows that may change from any significant shift off the yield curve control process. i am more focused on the domestic allocation shift, right? because over the last decade, domestic investors have put almost all of their money into local fixed income, because it's been a predictor of a safe and secure return.

equities have not done well at all. but if we are going into a bear market for bonds, which is what a removal of yield curve control will entail for japan, then that has to be bullish for japanese equities. since the domestic investors don't own them, foreign investors don't own them, they are extremely cheap, they are cash rich, they are priced in a very cheap currency, they are in a part of the world that is going to lead us out in terms of global growth -- so for all those reasons, i think japan is quite interesting. then of course we like china as well. >> here in the u.s. today, with some more signals the consumer for now is still healthy, how do you assess the health of the global consumer especially across asia? >> i think the consumer's fine.

this is what the people who continue to call for new bearish flows are missing. there is no major balance anywhere in the world -- imbalance anywhere in the world. you find record low unemployment levels in the u.s. and europe. businesses are fine with tons of cash. and the banking sector is completely fine. so there is no major imbalance. when you look at china, moving off of covid zero, ahead of the most optimistic people, we are expecting the spring of 2023 -- they also have the same excess savings that the u.s. and europe had. $2 trillion of excess savings built up in china over the last nine months according to mckinsey, we have seen what that means. when we get through covid running through the population,

which will happen in china now, it will be very quick, as we have seen in the u.s. and europe -- people then start to spend. that is why europe is still not in recession even though he had that tremendous run up in energy costs. and most importantly for me and for us at tpw advisory, they are going to move from the most hawkish central bank to the least hawkish major central bank in 2023 with the ecb and boj changing in a more aggressive direction. that means the dollar is going to weaken. the dollar weakening means the rest of the world starts to outperform. and i think the most important thing is we are at the very early stages of a major multiyear shift away from u.s. equity leadership, to the rest of the world, both em and

developed. >> you say people worried about the inflationary impact of the china reopening are grinch-like, and some are on our own bloomberg economics team. is it not a concern that we will see that reflation of energy prices and commodity prices, having a global impact in the second half? >> we are bullish on commodities. we are overweight commodities and overweight equities. underweight fixed-income. particularly sovereign. we are overweight the non-us markets including china, southeast asia, and brazil in particular. amongst em. i don't think the inflation concern and china is particularly valid for a couple of reasons, one, we are going for domestic demand to stimulate domestic cnhat s both a tactical and strategic objective of china. two, they are not going to go

full into f.a.i., fixed asset investment as they have done in the past, which uses a lot of commodities. third and finally, the commodities are all well off their highs. so there's a lot of room for commodity prices to rise before the even come close to the 2022 highs. i don't see that is a big worry. >> do you think this is going to be an instance of the opportunities in china, what positioning would you be looking at the moment given we still have to wait for the reopening to play out? >> no, no, i think markets move much faster today than they have in the past. i don't think you want to wait until the reopening. the tech stocks bottom came back in the spring.

the u.s. listed etf for china tech bottoms last spring. it is 50% off its low. it's also really interesting asian high-yield is now breaking out. we own an etf that plays directly to asia high-yield. about a third is china. it just broke above its 200 a resistance for the first time this year. so markets are moving quickly. and i think the opportunity is significant because people have been going the other way all year, right? i think it is really important, the headwinds of 2022, re-tightening, inflation going ever higher, covid and china are now becoming -- in china are now becoming tailwinds. rates are coming down, china is off of zero covid. so these tailwinds have the potential to surprise to the upside. let's just to a thought

experiment. everyone expects a bear market bottom and a recession in the u.s. and the first half of next year. what happens if that does not occur? because that's how people are positioned, right? if that doesn't happen, then all that positioning has to go the other way. and i don't think you necessarily want to wait for that. so we are already positioned for those non-us markets and commodities to lead in 2023. >> good to have you with us, jay pelosky. founder and principal of tpw advisory. terminal subscribers, go to dayb. you can customize your settings so you only get the news on the industries and assets you care about. this is bloomberg. ♪

>> elon musk is not suited to rhonda platform -- run the platform, saying he should focus on tesla. >> very happy with the direction on transparency and technology, but i'm also aware of what it's like running a media company and the incredible challenges of twitter. i have many friends working at twitter and i know many of the things that were going on inside twitter that have now been discovered by elong, going on for a long time -- elon, going on for a long time. i think they will ultimately do a good job. what i really think is elon it is not suited to be the front facing ceo of twitter, and that's that. >> he says he will step down as ceo as soon as he find someone for the position. who do you want in that seat, ross? >> there's different approaches. i've talked to a couple of people, there are some people

from t-mobile or the entertainment industry like kevin mayer that make sense. there are also great executives from media and the ad business, that would make sense. answer partner with elon, so he can focus on the technology. exactly what he said yesterday is exactly what i want, i want him to focus on the technology and the product and let somebody who is a media savvy person deal with advertisers and the media and the front face of the company. ut i think a lot of the political -- but i think a lot of the politicization of what's been going around around twitter has also hurt the tesla brand, and that i well, we fell in love through gaming. but now the internet lags and it throws the whole thing off. when did you first discover this lag? i signed us up for t-mobile home internet. ugh! but, we found other interests. i guess we have. [both] finch! let's go! oh yeah! it's not the same. what could you do to solve the problem?

we could get xfinity? that's actually super adult of you to suggest. i can't wait to squad up. i love it when you talk nerdy to me. guy, guys, guys, we're still in session. and i don't know what the heck you're talking about.

>> china's central bank says it will guide financial institutions to support mergers and acquisitions in the

embattled property sector. for more on this, let's bring in kathleen hays. this is chaired by the pboc governor himself. >> of course. there have been hints the property sector would get more support. no surprise after china pulls off all the stops. this is one more way to get the economy back on track in 2023, which more and more people are betting on. let's look at what came from the announcement on the people's bank of china website. a few paragraphs but very powerful. they are going to support the property sector to restructure. they are going to guide banks toward supporting mergers and acquisitions. no surprise there. there will be a strong one. in addition, they are talking about helping diffuse rifts to

help financial conditions. they are going to be lenient with the financing and allow banks to be more lenient as well. they want to make sure that reasonable financial needs are being met. in other words, if you have a chance of surviving, if you need a little more forbearance on your loan, that's the kind of thing they are probably talking about. broadly speaking, implement prudential monetary policy. in other words provide enough stimulus if still needed. they have done triple r cuts and other things on that regard. and anything also comes along in 2023 remains to be seen. this comes after the vice premier last week at a meeting hinted at this, talking about the property sector as a pillar of china's economy. that's a big difference from what we heard the last couple of years. >> what do we expect to hear from the bank of indonesia? there's one more important exception. >> is one more exception in

the forecast, the bank of indonesia's expected to hike key rates by 25 basis points after three 50 basis point rate hikes in september. it is up to 4.25%. a pretty rapid move. that's been to support the rupee, under a lot of pressure these last few months. what happened lately is the inflation rate is starting to fall, heading back to its 2% to 4% range. just yesterday, a statement, a report from the b.i., the bank indonesia, saying it has reached the peak. that is another sign maybe there's room for them to do the 25 basis point hike. but our economics team from bloomberg says they will stick with 50 because there is still weakness and pressure on the rupee. still very fall above that target. a little suspense around the decision. let's say, go b.e., go bloomberg

economics, let's see what happens. >> kathleen hays, thanks. belle, what are you watching in the markets? >> 30 minutes from the open in korea and japan, singapore futures just came online. we are seeing that pointing to the upside here. in the u.s. session, u.s. futures pointing to a higher start. unsurprising given was a more positive sentiment coming through in the session. a little optimism around corporate earnings from the likes of fedex and nike. you can add to at the absence of fed officials who have not been speaking this week at all on the hawkish outlook. it is something that's been putting a little bit more grain back onto the screen as we head into the holiday season. let's change it on. we might not have seen the santa claus rally some had been hoping for, but still we can see the trade entering holiday mode at least. volumes are really starting to pull back now, at a two month

low. something can really exacerbate those moves, any outsize moves in that holiday fin trading. >> you were expecting people to go away on holidays. is been such a busy newsweek -- it's been such a busy newsweek. let's get to vonnie quinn with more news. >> president biden has said the u.s. seeks just peace to end the war new grin as he welcomed the ukrainian president to the white house. biden also announced $1.5 billion in additional military aid, including a patriot missile battery. volodymyr zelenskyy thanked biden for his support, he will address congress leader and his first trip outside ukraine since the invasion -- in has first trip outside ukraine since the invasion. >> to ensure the brave ukrainian people can continue to defend their country against russian aggression as long as it takes. >> the world trade organization has ruled in favor of hong kong in a dispute with the u.s.

a panel of three wto experts agreed that u.s. violates international trade rules by requiring hong kong products to be labeled as "made in china." the u.s. strongly rejects the ruling and does not intend to remove the marking requirement. a shortage of antiviral covid-19 medicines and china are spurring people to turn to the black market. social media posts and newspaper reports show people seeking out online channels to source generic versions of drugs like paxlovid, which is not approved for sale in china. the removal of the zero covid policy has led to a brazen cases and a strain on the health care system. failure to regulate cryptocurrencies may trigger the next financial crisis, the rba warns -- rbi warns. a main concern is cryptos like inherent value and are speculative.

they say other central banks will follow with digital currencies. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. ♪ >> a bahamas judge has greenlighted sam bankman-fried's extradition, clearing one of the final hurdles for him to face criminal charges in the u.s.. cassandra johnson joins us now from nassau. we know his on his way back to the u.s. at this point. what comes next? >> hi there. we can confirm bankman-fried has arrived to the airport where he will be boarding a flight to return to the u.s. it's expected while he faces charges in that jurisdiction, herein nassau, authorities are saying that the investigations are ongoing, they are really keen to close the loop around withdrawals that took place. -- that took place that were unauthorized.

they are peeling back the curtain on companies that own properties under the ftx umbrella. >> do we know at this point was sort of defense he will put up here in the >> it's unclear exactly what his defense will look like. we have gathered there is discussion of him being granted bail once he arrives. exactly what the strategy is is uncertain. just two days ago in the courtroom, it seems like his u.s. lawyers were not on the same page as his lawyers in the bahamas. many speculated as to whether that might suggest that there's still a lot of positions to be made about what the plate is for him once he arrives. >> coming up next, we will get an outlook on the chinese economy in 2023. our guests tell us why they see structural challenges to growth. this is bloomberg. ♪

>> our next guest says weakness and china's exports and property sector will prevent a stronger recovery in 2023. joining us now is ben simpfendorfer. great to have you with us. regardless of the reopening

from covid zero, the boost we expect to see across china and the chinese consumer as spending resumes, there are still the structural longer-term problems with the economy, what do you see as being the big drinks for next year? >> -- drags for next year? >> consumers spend heavily on electronics and governments around the world spent on fiscal stimulus. that growth is not over with with exports contracting and likely to remain weaker over the next 12 months, creating challenges for policymakers. second the property sector is self is still quite weak with sales contracting, construction starts are also contracting. have announced easing measures. we asked like to see more over the coming months. it will take time to get the property sector into gear. we can't forget the sector is

structurally imbalanced. that is a real concern. >> we see some incremental moves when it comes to the property sector. potentially the reintroduction of the vector listings. almost like we are back 10 years and been. -- 10 years again in terms of the mechanisms. will they help? because ultimately covid zero could potentially address some of the issues when it comes to the demand side. >> it will help to a degree. but the population itself long-term is in decline. that produces natural low demand for property. there's only so far a property can drive growth going forward. at best we look for some type of stabilization. as you say, we are not likely to return to the growth rates we have been accustomed to over the last 10 years. so we do have to search for alternative drivers of growth. in the past, aggressive infrastructure spending has been quite important. clearly the country already has fabulous infrastructure in many

cities across the country. that type of spending is less powerful than it was before. that's one of the concerns next year. whether we got the types of fiscal stimulus that we saw around the world in response to the pandemic. upwards of 10% and many countries including the u.s. if we don't get that in china, that means the growth recovery in the second half will perhaps be a little bit weaker than many expect. >> will the recovery of the supply chain's help, especially as we are headed towards a complete exit from that covid zero strategy? but at the same time, a copy out of course as we are seeing more inspection -- more infections. >> we are. we expect short-term supply chain disruptions. it could be quite painful for the global economy. especially against the backdrop of still high inflation. china is a major producer of a range of goods. 30% of global consumer exports.

20% of global capital exports. that's before you look at specific products. nearly 7% of the world's smartphones -- 70% of the world's smartphones and pc's come from china. as tough drivers -- as truck drivers get infected, they won't turn up for work. it could be quite awkward for the global economy. >> what are the currency implications right now from the exit of covid 02 perhaps a rebound in the chinese economy next year? we have already had the remnant be rally with the u.s. dollar together for some time. what's the outlook for next year? >> i think with the currency specifically, we are not likely to see real strength from here going forward. given the weakness in exports, the government is likely to support a stronger currency next year. i'd expect perhaps the emninbi

-- remnibi to trade side was over the next couple of months. >> we have seen what could be categorized as optimistic talks between australia and china. over the past few days. when it comes to international trade relationship with china, are we getting an indication that the need to encourage external demand and build these relationships has increased, given the vulnerability of the domestic economic growth trajectory? what does that also mean when at the same time for very sensitive tech, beijing is facing a lot of problems with these u.s. curbs, and allies building them up as well? >> we are seeing a growing recognition the trade and investment are important, have suffered as a result of covid controls. there are reports and we have seen evidence governments speaking to foreign investors,

trying to encourage the return of that investment. at least encourage manufacturers to stay put rather than relocate to obvious markets such as vietnam and mexico. china remains an economy that is still quite dependent on manufacturing generally. particularly export manufacturing. critical to the country's growth going forward. you may well see the type of easing that does encourage china to engage constructively with countries such as australia to support that type of trade investment. australia equally is a major beneficiary, given the country's highly exposed among other oecd countries to china's export sector. the type of disruption we have seen over the last 12-24 months have been quite disruptive, we've seen a significant decrease to australia and exports against the backdrop of a pandemic and more recently

global recession risks. >> ben simpfendorfer. good to have you with us. partner at oliver wyman. an out-of-control energy market, soaring inflation, and trade tensions with the u.s. have made it anything but a quiet first year in office for the german finance minister. he joined bloomberg exclusively in berlin to discuss his country's economic recovery. >> this year has been difficult, of course. we were harmed by the russian energy law. we have too high a dependence on russian energy. that had been a mistake. but now we have changed our policies. at light speed, we are improving our energy infrastructure. we are bringing more capacity of

renewable energy to the grid. and who thought that germany would be able to build new lng terminals in less than one year? >> you have done it. >> i will show you, this is the very best moment to invest in germany. this is the very best moment to buy bonds. >> the crucial question, you speak highly about germany and you particularly like cars, but my question to you is -- when you look at the inflation reduction act, can germany stay competitive, when you have the u.s. coming in with such an aggressive policy? is that something that worries you? are you on the phone with your u.s. counterparts? what do you want to see out of this? >> on the one hand, the german car manufacturers are competitive.

>> what about tesla? >> we must not fear tesla. tesla produces near berlin. they are innovative and competitive. they have plants in the u.s. as well. so i think they are less harmed by the inflation reduction act than public and -- public opinion and germany thinks. on the other hand, i take the inflation reduction act seriously. i have my concerns, regarding a fair level playing field between the u.s. market and the european union. this is where we need to negotiate. i am in favor of reversal for european businesses in the u.s..

>> you don't want a trade war. >> we have to avoid any kind of trade war. instead of trade war, we need trade diplomacy. >> the german finance minister, speaking exclusively with bloomberg. be sure to tune into bloomberg radio to get in-depth analysis from the team there. you can listen and by the app, radio plus, or bloombergradio.com. more ahead. this is bloomberg. ♪

>> a quick check of the latest business flash headlines -- indonesia will ban exports from the middle next year in the country's latest move to boost domestic processing of its mineral resources. indonesia is a world's sixth largest producer and holds the for the biggest reserves. the president says the move will boost the progress and welfare of indonesia's people. they have offered to take trading private. the parent company currently owns 34 per 5% of nippon still trading. they can so eventually own 80%

with mezzo we holding the other 20. >> investors are betting the yen may rise as much as another 10% after the bank of japan's unexpected policy ship fuels speculation it is finally abandoning its dovish monetary settings. let's get the details from reporter ruth carson. are the biggest funds heading into 23 talking about 100 -- 2023 topping 100, 120 at some point? >> it is all steam ahead with buying the yen regard as of where you see it heading in 2023. that seems to be the thing. all the macro funds out there are switching from the big yen short of 2022 into the big yen buy into next year.

at 100 is 30 trillion less than the currency is trading today. the yen deadfall to a three decade low -- did fall to a three decade low in october. it is still cheap despite its rally. >> we are seeing some big moves in jgb's. take a look at this chart. we are seeing it to tense -- two 10ths steeper than 2015. the sharpest steepening for jgb. this could spell trouble for bond markets. this is a credibility question as well. traders are saying they will continue to test the limits of kuroda's policymaking. is this a midstep that has led to questions about their

commitment? >> absolutely. it is an interesting development. soon after as we saw, the announcement, kuroda did make mistake by backtracking suddenly. the boj would have to give up 0.5% on the yield cap, 0.8% if possible. to test the boj's limits. they say no one is going to believe what kuroda says anymore. this is a big loss for the boj. continue to see people questioning the carla -- the credibility of boj. >> coming up, why have turned more bullish and equities,

expecting to outperform bonds in the near-term. plus we will be talking about the outlook on the yen and the rest of g10. >> also, a special coverage of the ukrainian president's address tilde u.s. congress -- to the u.s. congress. the markets open in seoul and tokyo next. this is bloomberg. ♪

>> this is "daybreak: asia."

we see calm returning to the markets after that boj surprise action. treasuries and global bond markets steadied a little bit. asian futures are pointing higher. this hour, we are also watching president zelenskyy's address to the u.s. congress. >> the u.s., pledging more support. you mentioned that calm. i wonder if part of it is traders are on holiday. we are seeing pretty thin volumes across the ground. let's take a look at the market open. >> we have the opens in japan and korea upon us, forecast treasuries. we have seen the 10 year yields moving higher. futures a stabilizing wednesday to snap that three-day skits. that's the 10 year yield here at the start. unchanged. we will be keeping a close watch on the japanese debt space as

well, particularly at the shorter end of the curve given we saw that to year yield rising above zero wednesday for the first time since 2015. in the boj announcing more unscheduled buying operations, particularly shorter duration. the yen is also starting to stabilize here. you mentioned holiday thin trading. a lot of people it seems are on holiday break here in asia. we have the nikkei coming online to the upside. in korea at the start of trade, the open here is looking higher at the start, even as we do see those bigger gains in the tech stocks, the kodaq outpacing the kospi. we did have that warning from micron, a weaker sales forecast coming through from the company. also i think the korean won this morning. below the key 1300 level. the korean won was the biggest gain are in the session on wednesday. that is really down ot a lot of optimism -- down to a lot of optimism about what the boj

move means given that japan and korea are competitive in a lot of levels. we are still seeing the korean won strength coming into the currency. in australia, for the asx 200, we are seeing holiday thin trading here already, just under 50% lower on trading volumes than on a 20 day moving average. we actually see the vast majority of stocks around 80% in the green and the session -- in the session. wti, moving into a fourth straight day of gains, as we see the contraction in u.s. stockpiles. >> our next guest says she has turned more bullish on equities. it's good to have you with us. we have seen more recession fears around the world at a time when the global central bank's are tightening. what is driving your optimism on stocks? >> good morning. clearly there is a lot

ofrecession risks around . investors are trying to navigate whether the recession risks and the hawkish fed has already been priced into the markets are not -- or not. from a tactical positioning standpoint, we think equities may be in for a rebound. a lot of the negative news on the growth and fed hawkish in us fund is already in the price. -- hawkishness fund is already in the price. investor sentiment was bullish at the beginning of the month and has tapered off. if you look at fund managers' cash balances, they are sitting at 20 your highs, which means there's a lot of cash available to deploy into risk assets. we think coupled with the fed hawkish ness and the growth recovery -- and the growth slowed down already in the price, equities could be in for a rebound. >> regionally speaking, what are we talking about?

>> the main fear really is in the u.s.. regionally we are more positive on european equities versus the u.s. equities. something we think the markets may be missing is the rebound or the bottoming out of growth data we have seen in europe. if you look at economic data over the last one month, pmi readings or the german business sentiment data, all of those have surprise to the upside over the last 1-2 months. that's essentially shown us europe might already be on the path of recovery. we are actually most bullish on european equities. asian equities, like you mentioned, china is the biggest driver of that. the reopening theme -- if the reopening theme continues to remain supportive and us policymakers have shown a concerted effort in supporting the economy, we think that could also support asian equities,

especially if the dollar continues to weaken. >> on the trajectory for the greenback, how does that inform the bond strategy? >> the greenback has obviously been depreciating over the last few weeks. that always provides a respite for emerging-market assets. we have seen emerging-market bonds be priced pretty cheaply at the moment. a a lot of the recession risks i mentioned as more price into emerging-markets bonds and the u.s. corporate sector. we are positive on the bond index but specifically hard currency debt rather than local currency debt. because you are still not over the entire hiking cycle and the inflation concerns. we would prefer to remain positive more on the hard currency and dollar-denominated debt in emerging-markets. >> you talk about the span of next year for the china reopening. what does that look like to you? there is a great deal of

volatility in terms of how this plays out, how successful it is. >> that is definitely a big risk we are watching and an uncertainty for the market as we don't know how things will pan out and policymakers may react. for the time being, it's been very positive. the policymakers have shown a concerted effort in the reopening and focusing on the economic growth and fiscal and monetary policy supporting growth. but if they do get concerned about the increase in covert cases or hospitals are unable to deal with the increase in cases, and if you do see a slight pullback in that narrative, that may get investors a bit nervous about the confidence they have in the chinese policymakers to continue on this path. our base case is that they will. and therefore we are still positive on equities. but that definitely remains a big risk for q1 next year, in

case that does turn. >> great to have you with us. let's take a look at the movers we are watching today. >> chip stocks and asia at the open here -- in asia at the open here, we had micron issuing a week sales forecast. coming in at $3.8 billion in the fiscal second quarter. comparing to the average estimate compiled by bloomberg of $3.88 billion. the company is cutting back on capital expenditure to $7.5 billion for the current fiscal year. an earlier target of as much as $12 billion, so a big gap there. we are going to be seen the company coming back on its headcount as well to deal with a headwinds. reducing the workforce by 10%. the picture is looking modestly higher today. perhaps also a signal of more

risk on trading throughout the session, even as there is holiday thin trading already. >> we are seeing broad gains across asia. let's turn to vonnie quinn with the first what headlines. >> have called off plans to hold a new conference wednesday evening on the prosecution of sam bankman-fried. this is about possible delays in the cofounder's return to the u.s.. he earlier told a court in the bahamas he's agreed to extradited -- be extradited to the u.s. to face criminal charges over the collapse of ftx. the reserve bank of india governor has warned failure to regular cryptocurrencies may trigger the next financial crisis. a main concern for the rbi is cryptos lack inherent value and are speculative. they say other central banks will follow with digital currencies. a shortage of antiviral covid-19 medicines and china appears to be spurring people to turn to the black market. social media posts and newspaper

reports show people seeking out online channels to source generic versions of drugs such as pfizer's paxlovid, not approved for sale in china. the abrupt removal of the covid zero policy has led to a rise in cases and strains on the health care system. the wto has ruled in favor of hong kong any dispute with the u.s.. a panel of three experts agreed that u.s. violates international trade rules requiring hong kong products to be labeled as "made in china." the u.s. trade representative's say the u.s. strongly in -- strongly rejects the ruling and does not expect to remove the requirement. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm honey going -- i'm vonnie quinn. this is bloomberg. ♪ >> president biden has welcomed volodymyr zelenskyy to the white house, as the ukrainian president seeks to firm up u.s. support for his country's defense against russia. >> for me, as the president, just piece is no compromises

as to the sovereignty, freedom, and territorial integrity of my country. the payback for all the damages inflicted by russian aggression. >> for more, let's bring in our u.s. government reporter, emily wilkins. we are minutes away from that expected address to the u.s. congress by president zelenskyy. what are we expecting? >> this is going to be an absolutely historic address to congress. the last time a leader whose country address to congress in the middle of a war was winston churchill. he has addressed lawmakers before but always virtually. he's coming out -- he's coming out a very unique time, both in the sense of where the war is at right now with the winter months coming and we -- and where congress is at. republicans are set to assume

control of the house chamber next year. there's been concern among republicans about the aid going to ukraine. there was a move within the american voters, a number of republicans saying they are not so sure they should just continue sending aid to ukraine. kevin mccarthy said it can no longer be a blank check. solesky has to really speak to those numbers and the american people who have concerns and remind them why they are backing ukraine in the first place. really call for democracy and uniting together and it will be a question as to what comes after that. right now congress is in the process of moving through a bill to from the government for the next year. included in that is $45 billion to assist ukraine against the russian invasion. of course a question about how much will be needed in the future. >> still ahead -- our special coverage of the ukrainian president's address to congress is coming up from 8:30 a.m. hong kong time, 7:30 p.m.

new york. our next guest expects dollar dominance to reduce and the first quarter of 2023 and joins us shortly. this is bloomberg. ♪

>> investors are betting

that yen may arise as much as another 10% after the bank of japan's unexpected policy shift this week. our next guest says the yen will perform when it comes to a recessionary environment. we have the head of fx research. when it comes to that dollar yen trading pair, we are seeing a little bit of a settling down i suppose when it comes to the market reaction, but still breaking below the 200 day moving average, consolidating around 132. we are watching for that 130, which it did it managed to reach. what needs to be the next driver when it comes to that upset pressure? >> look, i think we have the inflation data ahead of us, and that is something we are watching very closely. inflation in japan has been rising. we are focusing on the wages and services side of things.

there is a risk to an upset here, and that is probably going to set the path for the yen and possibly the boj into next year. >> when it comes to the path of dollar dominance as we get into 2023, the general consensus is, with these recessionary fears that we will see more weakness, but if we see a ton of volatility, investors are still flocking to king dollar. >> i think that is going to remain especially the first half of the year. the fact of the matter is, recession risks are not fully priced and. where else are you going to get 5% in a safe haven currency, when you convert that into a yen? this will have room to grow. from the fundamental perspective, in terms of rate cuts, we are looking at that coming in and the u.s. in 2024, so this overvalued dollar will potentially remain at least for the first half of the year, as

economic conditions globally continue to slow down. >> not to mention the fed tightening continues and more hawkishness than the market expected. same for the ecb. where does that leave the euro? >> that was a big surprise, we think the european zone has a lot of challenges at this stage. lagarde could raise interest rates to 3.5% or even higher to fight inflation. but that is going to have a stronger effect on the weaker areas in europe. so it's hard to see what impact it would have on the euro just because you've got issues around italy, and this time there's going to be no rescue package, because the focus is still on inflation. >> inflation, the energy crisis also continuing in europe, where where does that

leave commodity currencies? >> next year, when we look at the canadian dollar, we think that the australian dollar, from an economic perspective is on a stronger place into next year. we both know that sterling -- that the new zealand dollar and canadian dollar, in terms of structural deficits, are pretty wide. they also have a high debt to gdp as opposed to australia. going forward, there will be a differentiation into probably the second half of the year. as we speak currencies move and turn more towards a fundamentals in which westerly will be supported. >> good to have you with us, the head of fx research at anz. up next -- we will get a preview on the indonesia central bank's decision. saying it will start slowing the pace of its monetary tightening.

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>> a quick check of the latest business flash headlines -- micron plans to cut headcount by about 10% in the coming years as a projects a wider than expected loss on the quarter ending in february. they say the layoffs were encouraged -- will encourage charges of about $30 million, amid a slump and demand for computer components. elon musk says twitter was on course for $3 billion of

negative cash flow before he stepped into stem losses by dismissing more than half of the company's staff. he said he spent the last week cutting costs like crazy. the deal to buy twitter was partially financed by almost $13 billion of debt. hsbc has won a battle in the u.k.'s top court over a case of allegations that it turned a blind eye -- a blind eye to suspicious payments made by stanford be a bit in a split decision, the country's top judges dismissed an appeal by staff. they claim from the ministrations who privately allege the lender should've known of the fraud. nippon still has offered to pay as much as $1 billion to take trading private. the parent company currently owns 34 perfect percent of nippon still trading. nippon will eventually own 80% with mitsui holding the other

20%. >> an investor in both twitter and tesla believes elon musk is not suited to run the social platform. gerber kawasaki told us he should not set focus on tesla. >> i'm very happy with the direction that elon is taking srs transparency, improving the technology, but i am also very aware of what it's like running a media company and the incredible challenges of twitter. i have many friends working at twitter. i know many of the things that were going on inside twitter that have not been discovered by elon musk that have been going on for a long time. so it is a big task and a lot to fix, but i think they are going to ultimately do a good job. what i think is elon is not suited to be the front facing ceo of twitter and that is that. who i want? there are different approaches.

i've talked to a couple of people from t-mobile, i think there are some people in the entertainment industry like kevin mayer, that makes sense. there are a lot of great executives that are for media -- that are from media and the ad business, that would make sense. elon could really focus on the technology, exactly what he said yesterday is exactly what i want, i want him to focus on the technology and the product and let somebody who is a media savvy person deal with advertisers and the media and the front face of the company. but i think a lot of the political -- a lot of the political asian of what's been going on around twitter has also hurt the tesla brand. i think we will benefit by not having elon be the ceo of twitter. >> gerber kawasaki's ceo speaking to bloomberg's kailey leinz. let's take a look at what we are seeing when it comes to futures

trading for the european session. we did see the big jump in european stocks, the most in six weeks, as we see the return of risk appetite for the region's equities. futures, unchanged at the moment. german ducks futures, looking pretty flat to negative. we are seeing in these last days before the christmas public holiday, the volumes are going to be pretty thin, with a lot of traders already off for those holidays. the return to risk really follows a magnitude of losses that have been fueled by the hawkish stance by major central banks. it will be interesting to see whether we can carry that through to that last santa claus rally. >> so much news just ahead of the new year. we still have one more central-bank decision, and a couple more actually, let's focus on indonesia. the bank will release its interest rate rescission today . we expected 25 basis point hike.

let's get a preview with our correspondent in jakarta. we do have pressure on the currency and also pressure given the hawkish stance for major central banks. how much higher does bank indonesia have to go? >> yes, hi, good morning, thank you so much. the bank indonesia, which is the nation's central bank, is highly expected to start slowing the pace of its monetary tightening today. it is interesting, because the central bank just yesterday signaled that inflation has peaked. so that sort of legitimized expectations that it won't be aggressively raising its he policy rates any longer. it has shown by inflation which has slowed in the past few months, coming down from as high as a seven-year high just

recently. >> at the same time, we are seeing more protection of those measures potentially from the government, what is the latest when it comes to these mineral bans? >> yeah, so just also yesterday, the government president announced indonesia will impose a ban on exports of boxite starting from the middle of next year. it is part of the country's bid to move downstream in a policy aimed at boosting domestic processing of its mineral resources. it wants to move up the value chain. it's already done similar policy with nickel, for example. which it already started doing that recently. as a result, the investment in nickel has tripled, in fact.

>> we are expecting the central bank decision. we are also expecting president zelenskyy of ukraine to address the u.s. congress. you can see house speaker nancy pelosi with the vice president. we are expecting that speech to start very soon. we do have special coverage next, as we await president zelenskyy on his first overseas trip, marking 300 days since russia's invasion of ukraine. we heard him earlier with a joint press conference with president biden. we are now awaiting his press conference in just a few minutes. special coverage, coming up it's official, america. xfinity mobile is the fastest mobile service. and gives you unmatched savings with the best price for two lines of unlimited. only $30 a line per month. that means you could save hundreds a year over t-mobile, at&t and verizon. the fastest mobile service and major savings? can't argue with the facts.

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>> welcome to a special edition of balance of power on bloomberg television and radio bringing

you the address of president volodymyr zelenskyy. i am david westin. we are waiting right now and as you can see nancy pelosi alongside vice president kamala harris. we are waiting for president zelenskyy. he will be escorted down the main oil in the chamber of the house, and we will be listening to them shortly. we go right to the white house and to the coordinator of strategic medications for the national security council. thank you for being with us. before we talk about what has happened today, what do you expect tonight? >> what the american people will here is a message of gratitude from president zelenskyy. he made that clear at the white house how much he appreciates american support for his efforts to fight russian aggression in ukrainian territory. you will also hear him give a very inspirational and honest account of the sacrifices being made by the iridium people and ukrainian soldiers on the

battlefield. he was just at a place yesterday in the donbass area, where some of the most intense fighting as occurred between the two sides, and he was right there with his soldiers. you will hear him talk about sacrifices and a very visceral and personal way and you will hear him want to talk about the future, and the future of not only american support for ukraine but the future of the ukrainian people themselves and how he wants to get his country whole, secure, prosperous, and independent again. >> part of it will involve missiles we heard president biden announced today, as we expected. give us a sense, because you are a military man through and through. you spent your career in the u.s. navy. what difference with those make on the battlefield? >> what we are talking about here are patriot batteries with interceptors that are an air defense system. it is very advanced, obviously very capable. we have been using variouss --

variants since the gulf war, it is not reliable. it will make a significant contribution to ukraine's ability to defend itself from this onslaught, and that is the only way you can describe it, cruise missiles and drones, iranian drones russia has been flying into the country and trying to destroy civilian infrastructure. it will take a little time, but once it gets there it will make a significant contribution. david: admirable -- admiral, i am told this will not be as effective against drones but particularly cruise missiles. what is the risk we will be shooting down or ukrainians will be shooting down russian aircraft over the border? >> the patriot is designed, really designed at its core for boosting missiles. that is what it's dna is all about. so it will be effective against

cruise missiles, although they fly differently than ballistic missiles. it will still be useful in effect against cruise missiles. we have seen reports the russians are looking at purchasing missiles from iran. we have not seen that consummated, but this would be very affected against that. less so against drones. drones flight load to the ground, very slow, they are harder to detect, but ukrainians have a lot of short range air defense systems available to them, and they have been quite effective against these drones. some of the systems we have provided them that we developed in concert with no lesions have been very effective against cruise missiles and drones inside ukraine. david: you mentioned the appreciation we will hear from president zelenskyy from what has been done. we are from president biden about how extensive u.s. support

and those of our allies as well as been for ukraine. at the same time, there is the issue of what happens next. we heard from president zelenskyy. he is confident even with changes in the majority of the homicide that would continue. to what extent is that part of the function of these remarks tonight? >> president zelenskyy understands well the need to go up on capitol hill and talk to lawmakers, because they are the ones that controlled the purse strings. in a bipartisan way, a bicameral way congress has been very supportive of ukraine, and you see that even this week as we are preparing for an omnibus spending bill that will provide another $45 billion for ukraine. there has been tremendous bipartisan support, and you heard president biden talk about that today. he expects that support to continue moving forward. we are confident we will keep that going. david: what we are watching right now if you are watching on television is chuck schumer as

well as mitch mcconnell making their way down that aisle. president zelenskyy will be making his way shortly down the same aisle. one of the questions asked in the news conference was what comes next? why are we doing this in a piecemeal weight instead of going all the way from the beginning? i am not sure that i heard the answer. we have resisted the patriot missiles, now we are giving them. why don't we go all the way right away? >> the president was talking about the evolving nature of this war. when the war first started 10 months ago and we were talking publicly about javelin antitank missiles, because it was an armored approach, and that is what the ukrainians needed in the fight them. when the fight moved to the east and the donbass we talked about i would look like farmland. hi-mars would be effective so we provided that. air defense is the most critical need given this constant

onslaught of cruise missiles and drones. the patriot will be a complementary effort to all of the other air defense capabilities that not only us but so many other allies and partners have provided. you have all that needs to the war, to the battlefield, and we have been doing that since the very beginning. we are talking to ukrainians every day about their needs and doing our best to accommodate them in the moment. david: we are seeing president zelenskyy make his way down the aisle in the chamber of the house. lawmakers on both sides of the aisle, everyone wants to get a handshake with president zelenskyy at the moment. what does success look from your point of view if this works perfectly tonight? >> i think president zelenskyy is the one that will be determining success, and he has made it clear. president biden said we shared the same vision, a free, prosperous, secure, and independent ukraine. that is what we want here, what president zelenskyy wants and he will keep fighting for it. david: that is john kirby, and

now we see president zelenskyy shaking the hands of vice president kamala harris and the speaker of the house nancy pelosi. he stands up to the podium to begin his remarks to a joint meeting of congress. [applause] [cheering] >> thank you so much. david: we are about to hear from president zelenskyy if in fact congress lets them talk because the ovation is those -- is so

thunderous and they are all standing up. i am not sure congress wants him to start just yet. [applause] >> members. [cheering] >> members of congress. members of congress, i have the high privilege and the distinct honor of presenting to you his excellency volodymyr zelenskyy, president of ukraine. [applause] >> thank you so much.

[applause] >> thank you so much. thank you. it is too much for me. [laughter] all of this for our great people. thank you so much. we are americans in all states, cities, and communities. all of those who value freedom and justice. who cherish, as strongly as we ukrainians in all of our cities, in each and every family. i hope my words of respect and gratitude resonate in each american heart. madam vice president, i think

you -- thank you for your efforts in helping ukraine. madam speaker, you bravely visited ukraine during the full-fledged war. thank you very much. [applause] very privileged to be here. members of congress, representatives of both parties who also visited kyiv. esteemed congressman and senators from both parties who will visit ukraine i am sure in the future. dear representatives. [applause]

present in this chamber and throughout the country, dear journalists. it is a great honor for me to be at the u.s. congress and speak to you and all americans. against all odds and doom and gloom, ukraine did not fall. ukraine is alive and kicking. [applause] thank you.

and it gives me good reason to share with you our first joint victory. we defeated russia in the battle for minds of the world. we have no fear, nor should anyone in the world have it. ukraine named this victory, and it gives us courage, which inspires the entire world. americans gained this victory, and that is why you have succeeded in uniting the global community to protect freedom and international law. europeans gave this victory, and that is why europe is now stronger and more independent than ever. the russian tyranny has lost

control over us. [applause] and it will never influence our minds again. yet, we have to do whatever it takes to ensure that countries of the global south also gain such victory. i know one more very important thing. the russians will stand a chance to be free only when they defeat the kremlin in their minds. [applause] yet, the battle continues and we have to defeat the kremlin on the battlefield.

yes, this battle is not only for the territory or another part of europe. the battle is not only for life, freedom, and security of ukrainians or any other nation which russia attempts to conquer. this struggle will define and what world our children and grandchildren will live, and then their children and grandchildren. it will define whether it will be a democracy of ukrainians and for americans, for all. this battle cannot be frozen or postponed. it cannot be ignored, hoping that the ocean were something else will provide a protection. from the united states to china, from europe to america and from africa to australia, the world is too interconnected and

interdependent to allow someone to stay aside and at the same time to feel safe when such a battle continues. our two nations are allies in this battle. and the next year will be the turning point, i know it. the point when ukrainian courage and american resolve must guarantee the future of our common freedom, the freedom of people who stand for their values. [applause] ladies and gentlemen, ladies and gentlemen, americans. yesterday before coming here to washington, d.c. i was at the

front line. in our stronghold in the east of the ukraine in the donbass, the russian military have been taking battle nonstop since may. they have been taking it day and night, but the city stands. [applause] last year, 70,000 people lived in this city, ended out only a few civilians say. every inch of that land is soaked in blood, worrying guns sound every hour -- roaring guns sound every hour. in fierce combat and even hand fighting, but the ukrainian dog bus stands - -donbass sands.

[applause] russians use everything, everything they have against of the city and other of our beautiful cities. the occupiers have a significant advantage in artillery. they have an advantage in ammunition. they have much more missiles and planes that we ever had. it is true, but our defense forces stand. [applause] and we -- and we all are proud

of them. the russian tactic is primitive. they burn down and destroy everything they see. they send thugs to the front lines. they send convicts to the war. they threw everything against us similar to the other tyranny, which is in the battle of the bulge. through everything again it had the free world, just like the brave american soldiers, which held their lives and fought the killer's forces of christmas of 1944. brave ukrainian soldiers are doing this same to pollutant's -- putin's forces this christmas. [applause] ukraine holds its lines and will never surrender. [applause]

so here on the front line, the tyranny, which has no lack of cruelty, against the lives of free people, your support is crucial not just to stand in such fight but to get to the turning point. to win on the battlefield. we have artillery, yes. thank you. we have it. is it enough? honestly, not really. [laughter] to ensure [indiscernible] is not just a stronghold that holds

back the russian army but for the russian army to pull out more shells are needed. just like the battle of saratoga, the fight for the city will change the trajectory of our war for independence and for freedom. if your patriots stop the russian terror against our cities, it will let ukrainian patriots work to the full to defend our freedom. [applause] when russia cannot reach our cities by their artillery, it's fight to destroy them, more than that russia found an ally in this genocidal policy, iran. iranian deadly drones in

hundreds became a threat to our critical infrastructure. that is how terrorists funded together. it is just a matter of time before they strike against your other allies. if we do not stop them now. we must do it. [applause] i believe, i believe there should be [indiscernible] between us and our allies. ukrainians asking american soldiers to fight on the land instead of us. i assure you ukrainian shoulders -- soldiers can perfectly operate ukrainian tanks and

planes themselves. [applause] financial assistance is also incredibly important, and i would like to thank you. thank you very much for both financial packages you have already provided us and the ones you may be willing to decide on. your money is not charity. it is an investment in the global security and democracy that we handle and the most responsible way. -- in the most responsible way. [applause] russia could stop its

aggression. really, if it wanted to, but you can speed up our victory. i know it. and it will prove to any potential aggressor that no one can succeed in breaking national borders. no one committing atrocities and ringing people over again there will, it will be step towards peace from russia, which is a terrorist state. russians are still poisoned by the kremlin. [indiscernible] we need to be's. yes, ukraine has already offered proposals, which i just discussed with president biden, our peace formula. 10 points which must be implemented for our joint

security, guaranteed for decades ahead. i am proud to share that president biden supported our peace initiative today. each of you, ladies and gentlemen, can assist in the implementation to assure that american leadership remains solid. bicameral and bipartisan. thank you. [applause] you can threaten sanctions to make russia feel how heinous it's a division truly is. it is in your power to help us bring to justice everyone who started this unprovoked and criminal war. let's do it.

let terrorists -- [applause] let the terrorist state be held responsible for its war and aggression and all losses done by this war. let the wolves see that the united states are here. ladies and gentlemen, americans, in two days we will celebrate christmas. maybe candlelit not because it is more romantic. not because -- it is because there will be no electricity. millions will have neither heating no running water.

all of these will be the result of russia's missile and drone attacks on our energy infrastructure, but we do not complain. we do not judge and compare whose life is easier. your well-being is a product of your national security. the result of your struggle for independence and your many victories. we ukrainians will also go through our war of independence and freedom with dignity and success. [applause] we will celebrate christmas.

celebrate christmas, and even if there is no electricity, the light of our faith in ourselves will not be put out. if russian -- if russian attacks take us we will do our best to protect ourselves. if they take us with iranian drones and our people will have to go to bomb shelters on christmas eve, ukrainians will still sit down at the holiday table and cheer on each other, and we do not have to know everyone's wish, as we know that all of us, millions of ukrainians which the same. victory. only victory. [applause] we already built a strong

ukraine with strong people, a strong army, strong institutions together with you. we develop strong security guarantees for our country and for the entire of europe and the world together with you, and also together with you we will put in place everyone who will define frieden -- freedom. put in. this will be the basis to protect democracy in europe and the world over. special, christmastime, i went to thank you, all of you. i think every american family which terraces -- cherishes the warmth of its own and wishes the same warmth to our people. i think president biden and both parties in the senate and the house for your available

assistance. i think your cities and were citizens who supported ukraine this year, who hosted our ukrainians, our people who waived our national flags, who acted to help us. thank you all from everyone who is now at the front line, for everyone who is -- victory. standing here today i recall the words of president franklin delano is a --roosevelt. the american people will win to absolute victory through their might. the ukrainian people will win too absolutely.

[applause]