>> you are watching daybreak asia coming to you live from sydney and new york, counting down to asia's major market opens. >> the top stories, asia stocks set for a lower open ahead of the key u.s. inflation report, policy sensitive to year treasury yields topping 5%. >> apple's new life phone -- iphone launch gets a look brian response despite camera grades and a higher price tag. and the shock -- shock resignation of the bp ceo, after he failed to disclose past relationships with colleagues. >> i'm in singapore as asia's biggest crypto conference of the year gets underway, later this hour, and we speak with the ripple ceo, who is locked in a battle with u.s. courts and the sec as to whether crypto constitutes a security.

>> we do have breaking news when it comes to south korea, the labor market data just came through. the unpleasant rate seasonally adjusted for august take a bit lower, 2.4% from 2.8%, and we saw it beat expectations when it came to economists expecting 2.9%. and we are continuing to watch to see how this plays out when it comes to the bank of korea. we have seen one be ok member recently calling for more of a policy response when it comes to the levels of household debt, but this tightening labor market scenario will certainly be an interesting element for the bank of korea to look at. we have seen a lot of other data that points in a negative direction when it comes to the south korean economy, including that long expert witness that we have seen in external demand,

that is quite a bit of downside pressure when it comes to the one, -- the korean won. what we are seeing that adjusted rate much lower than expected at 2.4%. let's look at how this will play into the start of trading in asia, two major stories we are following, one that the u.s. see -- how the u.s. cpi print looks and how that directs the fed, and what support measures we could see out of china, and the major credit -- credit risk is chinese property, which also has domestic data coming out next week which should show us more of the extent and broadness of that economic slowdown. futures trading to the downside, sydney futures in sydney up .1%, and we will be seeing boosts as opec cuts set up this supertight market that we see for crew. kiwi stocks are flat, leading to

the downside at the moment, chicago mckay futures are up .1%. china futures actually see a bit more upside as we see more support for the yuan, more when it comes to the aussie dollar as well with the pullback of the dollar after its biggest drop in two months. the verdict still out as to how much strength we could see in the currency. >> given that we are close to that january high for the u.s. dollar despite what we saw with the pullback as you said. take a look at u.s. futures, pretty muted in the asian session after we saw the s&p 500 lose ground in the new york session, trading below that 4500 level. the nasdaq also underperforming. we are watching the treasury space, i mixed picture with the two-year yields topping 5%, but at the same time we are watching the 10 year option drawing the highest yield since 2007, similar to what happened with three year sale as well, and a reflection of that bond market itself that we have seen

recently in anticipation of what the fed will do, but really to do with what we are expecting in cpi monthly reports coming out on wednesday and what kind of indication that gives us about the u.s. central bank. heidi, you mentioned that we are getting that boost from oil prices, right now we are consolidating at around that 10 month high level, but it is that tightness in global markets that investors are focused on. when it came to the new york session, we are really watching tech names, because when you look at apple, you see them losing almost 2%, it was that sell the news event that we are so used to seeing during a product launches with that iphone 15 and other products being released, but you have to keep in focus that the stock has rallied about 38% already, this year, for more, let's bring in our chief technology correspondent, mark gurman. mark, what did you think about these new products? >> i thought that the event was

more on the minus side, if you really look at it in an all-encompassing view, including the watches, the airpods, in both types of phones. still, on the pro phones, they did enough, they got people interested in the product this fall, they do not see any price increases, they tiptoed towards it, they raised the starting enterprises of the promax, but no game changers here. this was cut and dry as you can get. two minor apple watch refreshes, a minor update in the 14 and 15, new designs for the 15 promax, a big focus on titanium. >> the decision when it comes to pricing is interesting. there is this awareness of how sluggish the market has been and how stretched consumers are compared to what we have been in previously -- releases, but there has been difficulty when

it comes to the promax. >> there was a 10% increase in the u.s., hundred dollars, you're still getting that double storage capacity, or bang for your buck there, the other thing you're getting is a 14% pricing -- price increase in india. in some other countries it's different, canada is getting a price increase on not only the promax and the pro, but then there are changes to pricing like the u.k. where phones are hundred euros less across all foreign phone models, a price change situation across the board. still, the promax price increases motorola. >> how well is apple doing in china, because there might be government regulations and geo-political tensions with the u.s.. >> gets honest -- i'll be honest, it's difficult to tell what the impact is of

nationalism and other buyers because of the government agency restrictions on owning or apple projects -- products for work. it will take a few quarters to show what the impact is going to be. last time there was a major nationalism pushing china towards hallway against apple, that really set apple back in china for four or five quarters, i don't think that will be as dramatic, the world is a different place as it -- from where it was last time around. will have to see where it is on this. i don't think apple will take too big hit because of this. >> the chief technology correspondent there on the new product therefrom apple. over the next week or so, borrowing costs are set for seven out of the 10 most traded currencies, rafts last night says that the global economy is shifting towards a higher for

longer stretcher interest rates. the editor emeritus told us he is not sure the u.s. can dodge a recession. >> i have said this before, this is the most uncertain. -- stretch of time that i can remember in my more than 40 plus years in finance. not the most scary. 2008 and covid was scary. i don't think that we are going to have any catastrophic events, but when does the fed stop tightening, where did they stop, what effect does that have on the economy, do we have a recession? >> our next guest says geopolitical, inflation and recession risks are elevated, crating high levels of uncertainty. let's see what the opportunities remain. people do see them. the chairman at the alternate investment sees us -- is with us. you are always selective, where are you seeing some of the bright spots?

>> we have not been invested in china for quite a while, and we are interested in seeing attractive options in japan and india. japan is just in this weak spot right now, there are strong auto exports, you have the government that has helped with the utility bills, so inflation is not as bad as it is for other countries, and you are seeing the benefits of higher dividends , share buybacks, more m&a, and even more buyouts, all of that reevaluating the stock market, which is what japan is seeing this huge inflow of capital from foreign investors this year. we think that there is some room to run in japan. >> room to run in india as well, these are the key markets we are focusing on.

is it getting harder to find value, what is your methodology, particularly in some markets where you need to kind of get to the ground roots or grassroots rather, to do that research? >> with regards to japan, even with the rally for that we have seen in the europe -- europe, -- euro, it's quite cheap in terms of the casa of baruch -- borrowing. there are a huge number of companies you can take private given the current transit equity. from a private equity standpoint, japanese valuations look cheap. among that wide of companies to choose from, you can find very attractive companies that have global competitive -- competitiveness and are well run. we are seeing a lot of options there. with india, it always tends to be expensive.

that is because growth is strong in india. you have an economy just going up the curve of -- curve of development and expansion globally, you should expect to pay more for high-growth companies and we calibrate the standards accordingly. when a particular sector is popular, we sell out of what we think are fully priced companies and look for others that might be out-of-favor but are still companies that will come back. >> when it comes to japan you talk about that global competitiveness and those companies that really could benefit, what happens if you have a stronger yen? >> it's a two-way, you can't have everything. it's one of the other. the weekends are very -- a weekend is very good for exporters, if you have a weekend, it's good for that. the number -- a number of

companies have good pricing power, companies in the technology are key for making cutting instruments or cutting discs, there are all sorts of pricing powers, you may companies with pricing -- pricing powers. it does not help with things like cars, but with globally competitive companies, pricing power helps out. >> how do south korean companies compared to japanese ones and how are they in competition? what does it mean for the market outlook and south korea, especially for heavyweight names on the cosmi? >> with south korea, it's a very narrow market, basically a tech market, dominated by not many large companies. when you talk about the market in south korea, what we look at our specific stocks.

it's a huge global conglomerate of all sorts of businesses that are very attractive, but it is unattractive for many investors. what has been driving the weakness in samsung recently asked chip being at -- declining. and we believe it is near the bottom of the cycle at this point, and we think that there is significant upside for samsung, which is well-run, extraordinary intellectual properties, great market penetration, just a great company, basically. henry think now is an attractive time to get into samsung. >> we started this with saying that you are not invested in china. what would it take to change your mind? >> it would take a lot. not because there is anything terrible about china, but the way that we invest. we look for companies that we can understand led by

entrepreneurs who are working for the best interest of shareholders. in china, you have a government taking away and educating the most successful entrepreneur, which exists -- it hard to find successful entrepreneurial, because there's government policy on top of that, you have a second big risk of a policy change that removes that removes excesses for your business. with those very large challenges for an investor like us, we look elsewhere, because there is plenty to choose from across asia. >> always good to have you with this, the chairman at dalton investments. still ahead, looking at the oil markets because of the rally that took prices to ten-month highs, opec forecasting what could be as -- its biggest production shortfall in over a decade. we have more, this is bloomberg. ♪ eryone at thes

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>> oil trading around 10 month highs as opec data shows saudi led supply cuts are creating a squeeze, su keenan joins us with more on this and this could be the biggest shortfall in a decade. >> this is according to opec projections. member, opec has always wanted

to balance the markets, but the latest data there shows that perhaps what their goal is is to create a shortfall. if you like to the far right, the third and fourth quarter, those big lines lower are supply deficits, and that's what drove trading in the london and u.s. sessions, and we are seeing in asia trading prices stay close to the 10th month high. again, global oil markets, according to opec data are facing one of the biggest shortfalls in a decade, more than 3 million barrels, 3.3 is the estimate, the shortfall in the fourth quarter, and again, that is what sent brent in west texas to franchise fee or today. meanwhile, we want to point out the u.s. information agency is having a slightly different view thus far, their prior announcements for tutor 30,000

barrels a day deficits, that was before the extension of their cars until the end of the year, russian joint and by curbing their exports, and what you are seeing right here is brent on a tear hitting, 92 per barrel in the latest session, the upward momentum has been strong, we see similar momentum with texas intermediate, when the iea comes out with its latest outlooks later on wednesday, wednesday and the u.s., it will be interesting to see what their numbers suggest as the end of the year shortfall. the market has been trading on what looks like a very tight market, getting tighter. >>, china, right? how much further do we have to run here? question -- >> the question is are going to $100 per barrel, the market seems to be indicating that, the forward curve indicates that.

but many of the big banks and more influential forecasters, whether jp morgan or rbc capital markets do not see $100 by the end of the year, they are at odds with what the market is showing, if you drop into bloomberg you will see there is an interesting of -- an increase of bets by traders and other investors which will go to 100 or within striking distance with brent at 92. it is important to point out bigger pictures, prices have rallied some 25% since june, both brent and what -- west texas intermediate. this is also coming from the saudi led supply squeeze. it is coming at the time of the year when demand is at the highest in the fourth quarter, and we get into the winter, and that is when the demand is at its strongest. >> su keenan there. bernard learning has resigned

immediately after admitting he failed to disclose past personal relationships with colleagues, what sort of scenario does this leave bp in? >> they have to find a new ceo. right now, the cfo is looking at a long-term replacement, about as expected, i don't think that there has been a time when -- [indiscernible] maybe they will look outside. we will see. >> what does the resignation mean for corporate governance standards?

it's the latest in a series of ceos of corporate policies family to be honest with their boards, it's all about having relationships with your employees, and when you're at that kind of level, prohibition rules against that, but there is a company should of a few things. and i was talking to my colleagues at bloomberg news who covered the be here, there's a lot about boards feeling empowered to be able to force the ceo to account. >> simon there with commodities in america. you can get the run-up of all the stories you want to note and dividend to get your day going, go to dayb on the terminal,

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>> a quick look at top stories we are following, republicans have launched an impeachment inquiry into president biden. we are told investigators will focus on his son's overseas business affairs and whether the president benefited from the. the white house said that the inquiries have found no evidence of wrongdoing. the impeachment bid comes ahead of a potential government shutdown at the end of the month. >> i'm directing our house committee to open a formal impeachment inquiry into president joe biden.

this logical next step will give our committees the full power to gather all of the facts and answers for the american public. that is exactly what we want to know. >> u.s. lawmakers scrutinizing china said wall street executives have asked to have their identities withheld when meeting with them so that they do not alienate chinese investors. the representative says the meeting with the bankers was like being in a witness protection program, gallagher spoke at a hearing called by lawmakers to draw attention to threats that they say china poses to the financial system. >> look at how we are setting up for the asian market opens, sidney futures under pressure down .3%. and the aussie is now around that one-week high. we have the u.s. dollar under pressure with the strength of the yen and yuan which has reversed course as we continue to watch where fx is going

across asia. at the moment you see kiwi stocks losing .1%, and we are watching nikkei and s&p futures unchanged. we saw the japanese yen ground for the first time in four sessions in the previous session up about 1%. the japanese yen is falling after those gains that we saw on monday. we will continue to watch the gep space because we are looking for to that 20 year bond auction. we do have equal data out of japan as well in a few minutes, in 20 minutes or so, that will be the august ppi numbers. more to come on daybreak asia, this is bloomberg. ♪ the power goes out and we still have wifi to do our homework. and that's a good thing? great in my book! who are you? no power? no problem.

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>> we see a bit of pressure and oil prices in the asian session after we saw wti extending from a 10 month high, and we have the opec reports say that you could be seeing a shortfall of 3 million barrels per day, the most constrained the market has been in more than a decade, and we are also watching natural gas prices, and we saw u.s. knockout futures hi, we have a mixed weather forecast, stoking demand for powerplant fuel in the rocky mountain region next week, and we saw european gas price easing now that we have traders weighing the outlook against supply disruptions. >> its planning -- of a lyric is planning to pay dividends as it

seeks to raise its net debt. ceo ceo told us that the company avoided bankruptcy less than three years ago, and is -- it's plans ahead. >> we are posting our first capital market day in 10 years, our company was almost bankrupt in 2021, a joint a few months after, and only 18 months has managed to bring us profitability and generate cash. as far as capital allocation was concerned, our first priority is to manage it and be net zero by the end of 2025. our first parity is to return to cash to our cash holders. depending on the first priority, it may happen as early as 2025 provided by approval of the board and chief you. >> and it could open up things

as much as 2025, taking about the cash flow story, you have talked about the difficulties as recently as 2021 at the business. there was a free cash flow negative since 2016, is that about ending this year, is this about turning their backs on it, how can you achieve that? we have been generating since 2022, and today, it has to be the law, it has to be the law. when i joined the company, i realized the products are not high commodity products. i value solutions for the oil and gas industry. there is a price for it. what i did was to shift the use this premium product for which

customers will pay the right price. and we have increased prices last year, and by more than 20%, and we are trying to change our footprint. i decided to close our german plants, and the logic was very simple. there was a small gas market in europe, and this interest -- industrial base was the least cost effective. >> so that's how you managed to achieve that mark. >> and we have seen these at brock rising oil prices in the last couple of months. what is the kind of breeder for oil prices into business and -- and your markets, what is the idea of oil prices being up 20%, how does that impact your growth

and your markets? obviously, most of our revenue is difficult, we are confident in our prospects. and when you look at what we are looking at is lowest labor in 20 years, and it's increasing this year, at its highest level, compared to the past, and it was in 2019. when you look at the industrial and international forecasts, they think that they will be more oil and gas demand even in 2050. definitely, there will be a need for investment. keep in mind that if you stop investing, improbably -- >> and you have been through your own cost-cutting and we are in an environment of high

interest rates, are you at all concerned in this growth of slow higher rates where they are cutting back on that all-important capital spending that are >> they are not, because we have events, that is what we share today, we are coming in, and we have this investment in the oil and gas industry, and it will invest less and less. you need to invest in the worldwide economy. and now we are in this phase of this new capacity, and there is pollution on one hand and capacity on the other. our main customers are investing in new capacity. cripes that was the ceo and chairman they are speaking to us

earlier. take a look at how australia is setting up for just about 25 minutes away now, we see sydney futures extending some of those losses to .3%, this is how we see the tightening of the crude market and oil just extending that rally as opec-plus is extending for potentially the tightest market for crude in a decade. and were up $19 per barrel since --, the highest since november, and were looking at those outperformance in the asian session today. and the moves across treasuries as well as severance bond, we will continue to weigh for u.s. cpi, which could have a meaningful impact as to expectations for where fed policy goes from here, and also that divergence plan when it comes to other central banks, including here in australia. we are also getting chinese domestic activity indicators out

later this week as well. certainly, central banks will be in focus given that we also had the labor market numbers out of south korea, and stronger-than-expected. it's difficult for some of these asian currencies as we see that step back by the u.s. dollar. coming up next, we speak with ripples see out on their legal battle with u.s. regulators, we will make a life -- live in singapore. this is bloomberg. ♪ is it possible to fall in love with your home... ...before you even step inside? ♪ discover the magnolia home james hardie collection. available now in siding colors, styles and textures. curated by joanna gaines.

fabulous surroundings... but everyone's looking at their phones for financial insights from merrill. is he hailing a ride to the concert hall? no. he's making sure his portfolio and retirement plans work in harmony. they want to adopt a child and build a new home. so they're talking numbers with their merrill adviser. she's not researching her next role. she's learning how to handle market ups and downs without the drama. personalized advice so impressive your money never stops working for you with merrill. a bank of america company.

>> if they were to live up to the investor protection built into their current laws, it would help investors, but right now unfortunately there is significant noncompliance and it is a field with -- right with fraud and abuse and misconduct. the sep see -- >> the sec chair speaking there on crypto markets in tuesday. the biggest asian crypto event begins in singapore capturing founders and executives of leading web three companies. let's get over to the event, we are there with our first guest. cracks asia's biggest crypto event kicking off in singapore,

and our guest is the ceo of ripple. thank you for joining us. we just had a standby therefrom the sec chair doubling down yet again on his to engage with the crypto community, he's been very bearish in general, how do you do it that when you're getting the same sort of response all the time? >> it's super frustrating. you see markets like we have here in singapore, certainly, seeing in hong kong and the u.k., to buy where governments are partnering with the industry, and the leadership, you seek growth. that is why ripple is hiring. 80% of our hiring is outside the united states. i watched the testimony from yesterday, i have read some of the coverage, and i guess one of my observations is the definition of insanity is doing the same thing over and over and thinking about -- get a

different outcome. when you have a hammer, everything looks like a nail. saying people need to register does not mean that what the law says is arsenic -- we need securities. we have seen in the ripple case is that they judge our case clearly and said at rp is not a security, --. >> so the sec said had -- the sec had said that it was going in your favor and has now indicated that a court ended up appealing the decision. what was your reaction when that news came through? >> it's frustrating. grab a government with unlimited resources to keep fighting a fight that they have already lost, there is no recourse there, we spent over $100 million defending this case, and we are very optimistic. the judge has already said that xrt is not a security, they have not appealed that. it's more about whether or not

in certain circumstances there is an investment contract. i don't know whether or not they will even be allowed to appeal right now, but i remain very optimistic, as you go up the appellate court system in the united states, you get more conservative, and i think that bodes well. it's a long time. the facts are on our side, and the law is on our side, we will continue to deal with that. >> you just mentioned that the amount hiring you're doing, 80% of it will be over the course of this year. when it comes to who will be the next crypto harbor or define themselves as that, do you think that the door is permanently shut on the u.s. being able to do that? >> it's not permanent a shot, it's definitely a tough spot. the u.s. is still a large part of the world. we will have a presidential

election, there will be a change, i don't know, biden is running it, i don't know about all that, but you will see a shift in new ministrations coming in, and i think that congress will be called to act, and i think that the sec will continue to lose in court, there is decision -- there are decisions around the grayscale etf decisions, and they are using harsh language about the sec, and there is an appellate unanimous three-judge panel saying that the sec was being arbitrary and capricious. these are pretty harsh words for a government agency. >> in terms of your battle with the sec, do you think that you would like to see this reaching the supreme court? >> i would like closure, and ongoing, and the sec pushing that supreme court, that final verdict is not what the law

says. cracks when it comes to profitability, we have seen relief in trading volumes, very low liquidity in the space. how does that affect your profitability as a business? >> there is no question when crypto is going through its boom cycles that's affecting the whole industry. anytime that we have gone through what are called to winters, crypto has grown. we are in a strong position with a strong balance sheet. as you mentioned, we posed one acquisition earlier in the air and we have another pending one right now. we are continuing to play offense and a whole bunch of different ways. and we are going the business, growing our customers. we are growing our product suite. we believe that our customers are coming to us looking for us to be the infrastructure provider around watching and crypto technology, and we restarted payments that were in custody and we will expand

beyond that. >> this for distrust, and we understood that the ceo of fortress trust said that hackers had taken some money. i understand that ripple has made those customers whole. do you think that all of the issues around the space are being eyed out in terms of the vulnerability for security, and has enough trust been regained by use of these products to bring movement back into the space in a mean for way? >> i think it is an important thing to talk about. this particular compromise is an in user compromise, certain customers are using this to access their crypto compromise. and that was kind of a spearfishing attack, which frankly affects crypto, and traditional banking and affects securities. it is super frustrating when those things happen, we need to do with that, as the entire industry.

if credentials are compromise there is a was going to be risk. to your macro point, ripple things that it was important to build fortress trust, and we made those customers whole, and they did a great job of serving their customers, and we are glad to bring the men. >> on the regulatory front, we have seen a lot of progress in other jurisdictions outside of the u.s. across the u.s., middle east here and asia, some of those framers are quite narrow in the way that they look tech -- crypto. is that challenging in a sense that you have regular tory clarity, but also regulations are quite strict, and it is difficult to operate in those environments as well? >> that is not something that keeps me up at night, ripple received an in principle approval for payments institutions, licensing payments, we have paid for licensing in dubai, the strictness does not bother me. it is the lack of parenting. i think that this is the whole

industry not just ripple. how we have tried to lean into engaging regulars and being a good actor. it's when being unclear on what a good actor is that it becomes hard. what does not work is what the united states and gary gensler continue to propagate, confusion, masquerading as power to the sp's -- s.e.c.. the more confusion the more power they feel they have because they will just keep filing lawsuits. >> still clearly a lot to talk about in the u.s., that was the ripple ceo this morning. >> annabella joining us from token 2049 in singapore. let's get you other top corporate stories that we are following, the cofounder and main promoter of the $4 billion pyramid scheme -- one coin pyramid scheme has been sentenced to 20 years in prison. cross sebastian greenwood had pleaded to one of the first and biggest criminal frauds and --

evolving crypto currency. the crypto queen and the world's most wanted crypto fugitive. >> china has sentenced the former head of the nation's largest life insurer to death with a two-year reprieve. the former china life insurance chairman was found guilty of taking bribes worth 45 million dollars and hiding overseas deposits. chinese authorities warned the nations top banking executives that a corruption crackdown was far from over. we have more to come on daybreak asia. this is bloomberg. ♪

>> breaking out of japan, producer prices are going 3.2% for the month of august. this is easing more than economists had expected, also easing from 3.6% growth in the previous month, forever already that price growth had slowed to its largest since 2021, and we see that inflation potentially peaking in japan and perhaps reporting the boj policy of ultra easy monetary settings. we are seeing ppi month on month also on growing 4.3%, which is eight feet.

it is still easing from those settings that we have seen all of this year. it seems because -- companies are coming down from those highs at the start of the year. the producer price inflation in japan year on year growth of 3.2%. and this really comes from that growth of 3.6%, which was already the lowest since march of 2021. but we have fallen into that 3% level when it comes to producer price inflation in japan. >> we have seen how assets continue to react, given those comments from governor ueda about the boj might be having enough evidence to start looking at tweaking their monetary policy stats by the end of the year. in corporate news, we are watching qantas again today, the high court said to rule on the legality of the flag carrier

outsourcing over 1500 workers during the covid pandemic. let's get to caringly. what are we expecting and the significance of this decision that qantas has had a difficult run lady -- lately? >> this is just the latest woes of qantas that we have talked about recently. it's been a hard year for them. for qantas, they had 1700 ground workers sacked during covid, and the high court is expected to hand that verdict down any minute, and qantas want to see if it wins or loses, one of the things that we will see if it loses is if and what qantas will have to do, will units be pushing for fair rights for workers, will they hire them back, we have to see what this -- happens for the airline and the new ceo who is taking over at a time when its reputation has suffered and there is a lot of dissatisfaction with qantas,

this could be the latest bloomberg a big victory for them. >> caringly joining us from sydney, and we are also focusing on the bloomberg big take, and this has drawn criticism for its role in cutting greenhouse gases as the world seeks to hit that zero carbon emissions, are really coverage joins us now, there is this issue of carbon captures effectiveness becoming more urgent now, why? >> carbon capture technology is nothing new, it's been around for the last 50 years, but it really is that crucial, critical time for this technology to begin to succeed. we are seeing many countries slightly softened commitments to transition their energy systems from fossil fuels to renewables which will put even more pressure on technology that has a role to help decarbonizing

fossil fuels, whether from heavy industry or power plants. by some estimates, you are going to need 300 huge additional plants by the end of the decade. it has to begin in the next year or two, typically takes from 5-7 years to get this thing constructed -- things constructed, the technology is running out of time if he wants to prove that it can be successful in helping to avert catastrophically the change. >> what is the size of investment that we are talking about? >> it is pretty mind-boggling, if you think the past three decades, more than $80 million has been put into the technology, it was capturing point 01% of world emissions. what is required is that as much as $4.5 trillion of investment just by the end of this decade will get us up to the kind of

scale we need to give the world on track to hit net zero. >> are reported there with the latest, and we do have the market open coming up in about five minutes. the market will be opening in sydney, seoul and tokyo, this is tokyo. -- bloomberg. ♪ ♪ explore endless design possibilities. to find your personal style. endless hardie® siding colors. textures and styles. it's possible. with james hardie™.

shery: this is daybreak: asia counting down to asia's major market opens after we saw u.s. stocks falling. we had apple leading the declines in the tech sector, losing almost 2%. the selling newsday for apples launch of the iphone 15 and other products. haidi: if you're not due for an upgrade, maybe you will not be as excited. we are watching those upward supplies in the asian session. watching some key data we have gone through signs of further reflation in japan. also, the tighter labor market in south korea adding to a pretty interesting picture when it comes to what these central banks could do in the coming months. we're looking ahead to cpi print. from the u.s.. it will have a big impact on the japan markets. let's get straight to the open. the nikkei 225 coming up with a

loss of just .10%. a cautious start to trade in the morning session. the dollar yen holding pretty steady at 147. we saw some of those gains on the greenback after two months. the verdicts are out as to whether we will see further u.s. dollar strength. barclays saying they see deteriorating momentum for the greenback going into the end of the year. watching jgb yields given the really expectations coming through from the upi -- u.s. cpi print, what could that mean for fed policy, as well as the fed, that the u.s. 10 year yield is holding pretty steady. shery: take a look at how south korea is coming online, not a lot of move when it comes to the kospi, down .3%. this, after we saw those losses

in the previous session for the kospi. it was the worst day in almost a month and we continue to see the pressure right there. we are seeing the korean won holding at the 13 26 level. we have seen two sessions of gains for the korean won. foreign funds buying the korean bond market on monday. we are not seeing that upside when it comes to the currency in this early morning session. you mentioned the tight labor market we saw in south korea with the jobless numbers coming out for the month of august, falling to 2.4%, it was for 2.9%. really 268,000 jobs added, a really tight market in south korea. shery: --haidi: a little bit about the pullback or the breather when it comes to the

dollar strength story. this is a picture one we see, across australian assets. we heard from katie in asset management saying they see a further 5% gain in the dollar. they are seeing it in the aussie dollar and the q. week. the aussie is holding steady at this point at .60 five cents. the staggered open seeing a downside. we will wait to see if these energy majors, the oil producers see the upside of that ever tighter market coming from those opec-plus cuts. brent crude holding above $92 a barrel. shery: this is how apple suppliers are coming online. it's a bit of a mixed picture with samsung electronics gaining .6%. other manufacturers losing ground after apple lost almost 2% today. investors are cashing out, after the anticipation of the product launch phase ended. the stock is up almost 40% this

year, through monday's clothes. we have seen apple releasing four new added form -- iphone models, backing new materials and improved upgrades to lower back those consumers. -- lure back those consumers. haidi: the milken institute begins its conference today. plenty to talk about for the ceos, senior government officials and investors gathering from all over the world. let's crossover to the event. haslinda amin standing by. haslinda: about 2000 participants from all over the world, you talked about policymakers, investors and philanthropists discussing the global issues, including the markets. let's get inside perspective from the chief investment officer at templeton global investments. good to have you with us. >> good morning. haslinda: front and center today is the cpi print and

expectations that it will stand inflation. perhaps another story. is there a reason to even be nervous when we are almost at the end of the tightening cycle? >> i think you are right. when you look at the inflation picture, it is moderated, the base effect is kicking in. we are probably at the peak of the interest rate cycle. there might be one or two more increases but really the actions of the fed have helped contain the very robust growth in the economy. i don't think the short-term inflation print will concern anyone. what people will be concerned about is the jobs picture. we have seen some strong jobs figures the last few weeks. the bottom line is we are in this interesting balance in the u.s. economy. inflation is relatively well contained after what happened last year and earlier this year. the fed is now able to look through to the next phase of

monetary policy which is good news for the market. haslinda: that is what is confounding investors. janet yellen says soft landing. >> we would agree. what is interesting is it is very unusual for us to go through an extended period of shock interest rate hikes which we have had in the last 18 months. without a shakeup in the economy. we saw the u.s. banks, a look at value, there was expectation that that would broaden out. we have not really seen an extended shakeout. haslinda: when do you expect to see the shakeout? are we looking at 20%, 10%? >> it is difficult to predict when. it's going to have to be catalyzed by shock. that could be political events, a problematic corporate. that could be similar to what we saw with the banks earlier in the year. if we see it catalyst like that,

that would give people an opportunity to revisit with monetary policies to see whether other issues are in certain areas. that may be a cause for a shakeup. the most important point is once we get through that shakeup in will be a contained one. the broader economy is ok. balance sheets r.o.k.. we don't see the excesses in companies that we have seen in previous cycles whether it is inventories, capacity. so it is going to be a smoother exit from the shakeout for those. haslinda: what are you positioning for? what looks attractive. the rally has been led by tech. >> when you look at -- to your point the leaders of the rally over the last eight months or so,, it has been the make a cap tech stock. which has surprised people because it has been very narrow, over 80% of the s&p returns, it is no more than seven stocks. that cannot continue.

. we need to see a broadening out. when you look at the valuations of companies below those top seven, top 10, they are reasonably priced. i think there is a lot of scope for broadening out the market, that will require a few things. a signal that we are closer to the top of the interest rate cycle. haslinda: i want to talk about china, has it done enough to restore investor confidence? >> in a word, no. i think what we are seeing in china is a whole framework that is influx. the policy framework, the leadership framework, the management of monetary policy, a fiscal policy, all of that is in flux. investors are in transition. and we are still trying to figure out how it looks like through this flux. the challenge for us, as with many others, is this phase, could we extend it? there are a lot of moving parts. they are trying to shift the economy away from reliance on

real estate. there are external considerations, including geopolitics. there's a lot of moving parts which is tricky. haslinda: it is the second largest economy. we talk about the slowing down of growth, but it's 4%, which is respectable for those people. if you take a longer-term perspective, surely there are bargains. >> there are bargains. what is interesting about china -- well we have this two-tier market in china, the real estate space where there are stresses. that is well known. the financials are exposed to that. there may be a shakeout to come there. then he of the new economy whether it is ai related, greenish occasion -- greenification, green energy vehicles, there is an ecosystem. a lot of them have good growth characteristics. we like the area, we like the platform of companies, the internet companies. you have those companies that are attractively priced. but, you have this broader macro

issue holding back the market. haslinda: is the worst over for property? >> no it is not. when you look at the measures that have come through from the leadership, they're addressing the demand pictures, making it easier for people to buy property, making it easier for people to get mortgages, second properties. the structural issues are liquidity. when you look at the developers balance sheets they don't have a look at it he to complete projects. if they don't have the capacity available, that is bad news for isis and confidence. the measures have been focused on demand not liquidity. that needs to change. confidence is not there, it will take time to come back. haslinda: people talk about india being the new china. to the fair, india is no china, it is not big enough. but there still a lot of interest. when you take a look at valuations, they are overstretched. are investors willing to pay the premium to be in india? >> when you look around the

world, there are these two-tier markets everywhere. we talked about the u.s., the mega caps, the rest of the market. you look at asia and the emerging-market, it is the same. we talked about china on how some valuations are pushed too far to the other side. in india, given what is happening around the world, people are willing to pay a premium for the structural growth, for the visibility they are seeing, which they are probably not seeing as much elsewhere, resulting in the premium. historically, allocations to india from foreign investors have been limited. people have been very much focused on china. we just talked about china, there are issues there, structural, geopolitical. it is influx. yes, india is expensive relative to history. there are still some very interesting stocks with growth that is strong. but what people want is the lack of correlation that india provides relative to the u.s.,

relative to china, and as i mentioned, the structural growth, the reform, all of that is coming through. haslinda: thank you so much for that. the chief investment officer at templeton global investments. we're coming to live from the 10th milken asia summit. pretty excited days. i will be doing the opening panel at 9:00. stay tuned. haidi: always great discussions especially at a time of high uncertainty for the global economy and geopolitics. haslinda amin at the milken institute. we will be back of the course of the day. we have breaking news. developments when it comes to the qantas case, qantas has lost the high court appeal over these sector workers. allegations of illegally sacked workers during covid-19. qantas has lost the high court appeal to overturn a federal court decision, regarding the

allegation that they illegally fired almost 1700 ground handling staff during the pandemic, another blow to the national caries reputation, after allegations that they sold fares on canceled flights. the disputes that really led to the early exit of joyce. qantas staff reduced in 2020 and outsource the rules -- rules using third-party advisors in the decision that is celebrated for the union movement, ruling in for -- favor, after upholding the previous decision by the federal court that qantas has acted illegally. we are hearing that immediate response from the workers saying that they are calling for the dismissal of the qantas board at this point. shery: still had, live out the token toward -- -- ahead live at

the token court, getting a sense of the crypto market as regulation evolves. we speak with the governor of indiana, the state with the largest japanese investment per capita, eric holcomb is leading an investigation to tokyo. this is bloomberg. ♪ the sleep number climate360 smart bed is the only smart bed in the world that actively cools, warms and effortlessly responds to both of you for up to 44 minutes more restful sleep per night. save $1500 on the sleep number climate360 smart bed. shop now at sleep number.com. it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david. connect with an advisor to create your personalized plan. let's find the right investments for your goals okay, great. j.p. morgan wealth management.

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is it possible to fall in love with your home... ...before you even step inside? ♪ discover the magnolia home james hardie collection. available now in siding colors, styles and textures. curated by joanna gaines. haidi: the japanese prime minister is keeping his finance ministers in place while adding more women in his cabinet. our politics reporter joins us. what is this meaning for economic policy?

>> as you have pointed out, he is keeping his major members of his economic team, the finance minister and his trade minister. that indicates he is carrying on in the same policy. what is that policy? as we have seen in the last few days, he has said it is a matter of urgency to have new economic stimulus in place. he is aware that for households in japan, prices are going up, wages are perhaps not going as fast as he has hope, therefore households' pocketbooks are hurting, that is. also hurting his support rate. he's going to have to get more measures in place. he has started with gasoline subsidies which have been but in place and extended to the end of the year. that has gone well with the public. it's a question of what else he will come up with. shery: our politics reporter in

tokyo. indiana governor eric holcomb is leading the business delegation to japan at a time when the threat of u.s. strikes is weighing on the global sector. they are pushing for ev battery plants including securing pledges from gm and samsung were generating thousands of jobs. indiana has a largest amount of japanese investment per capita. japanese company in indiana operation include toyota, hyundai, and more. let's discuss more with eric holcomb, the indiana governor who joins us. thank you so much for your time today. what can we expect from this visit in japan? anything in terms of business deals? hi, governor, do you have us?

it seems we are not connected to governor eric holcomb. we will try to get back to him. for a roundup of all the stories that you need to know to get your day going in today's edition of daybreak, bloomberg some drivers -- subscribers go to db . this is bloomberg. ♪

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so they're talking numbers with their merrill adviser. she's not researching her next role. she's learning how to handle market ups and downs without the drama. personalized advice so impressive your money never stops working for you with merrill. a bank of america company. you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh haidi: taking a look at europe and stock futures. we saw european stocks falling ahead of the key u.s. inflation data. not much of a strong lead coming from asia, given that was

sawtek, apple -- saw tech, apple leading. u.s. cpi print, it will determine the next part of this platform for the fed and how markets are going to price those expectations. we did see that edging lower, kind of continuing to play out in the future session. the euro stocks off by .1%. we saw german dax futures softer, as well as the ecb, seeing the euro zone inflation levels at over 3% going into next year. shery: let's get back to the governor of indiana, eric holcomb who is leading a business allegation to japan among all u.s. states. indiana has the largest amount of japanese investment per capita. the governor joins us. great to have you with us. what business deals and agreements can we expect from your visit this time? >> well, we will have good news to share when it is appropriate. this is my third trip to japan

as governor. we're so appreciative of the long history and productivity that we have with so many japanese companies. we have over 300 japanese companies. they employ about 60,000 in great careers to help people realize the american dream. great to be here at this very time. it is a time of great transition. the conversations that we have been having, have been constructive, and productive when the time is appropriate. we will share more. shery: we know indiana has had a very strong ev battery plant push. what can we expect on the side of things, especially at a time when the auto sector is being threatened by strikes? >> well, you're absolutely right, we have five auto oems in the state of indiana, three of which are japanese. we are the state that has honda, toyota and subaru. when you think of the first subaru investment in 1986, and

the hundreds of millions of dollars that has come into our state to grow subaru on the soil, and 10 years later toyota came, they have originally invested about $700 million, they are up to 6.7 billion. then honda came, in addition to cilento's and general motors. i hope we can avert a strike. i hope they strike a balance and there is no collateral damage. we want to continue to lead the future of mobility and do it from indiana. it's been the case in the past. we hope it will be in the future as well. we know it will be if we can make sure there is no collateral damage that comes out of any potential strike. shery: the risk is there. haidi: i am wondering if there are contingency plans. what is the plan if there is a worst-case scenario? what do you see potentially stacked on the state? >> well, it would be very

impactful to say the least. we've got thousands of members in our fort wayne truck went -- plant, and thousands others in kokomo. those, facilities just to focus on the auto industry. i'm not one of those people who likes to lob cheap rhetoric from the cheap seats. i hope that no matter how hot the kitchen is, there's not too many cooks. the principles are in the room. they can strike a balance and we can continue to meet the market demands. that's the real pressure, meeting the market demand and the future of it, in part is led by ev investment. we're seeing, as you noted, a battery investment coming to the state of indiana. the whole ecosystem. we've got battery separated companies. we did a groundbreaking for a $1.5 billion company in tech that produces battery separators. we have built a whole ecosystem

in indiana to make sure the supply chains are therefore our auto manufacturers. all five of them, we want to make sure that they continue to lead the nation along with our neighboring state of michigan. haidi: i know you are keeping your cards close to your chest in terms of deliverables. what are you hoping out of the strip? increased investments from partners in the auto sector? or new partners you are looking to work with? >> well, both. obviously we want to say thank you. you can't say thank you enough to folks who have been with you for decades. but in this time of transition we're looking out into the future. we have goals and plans for 2030 and 2050 as well. that requires you to usher in new partners, into the program, that is what we have been doing here in addition to the

long-standing friends. we're working with folks that are going to help us realize the true potential of electrification, and diddle is -- digitalization. it is heavy stuff when you look at the world at a time we find ourselves in. economic security and national security go hand-in-hand. so, that is another part of this visit, to make sure our friends know where with them every step of the way during the good times and. -- challenging times as well. haidi: you speak a bit about the geopolitical tensions and complications when doing business. how clearcut is it when you have these cross-border investments in japan? do you worry about the external geopolitical pressures? >> well, i would say i am concerned, globally how shipping

lanes and supply chains are not just in time but just in case. we have to be nimble in our elaborate network around the world. japan and america have to know we are here for one another, for the state of indiana what we seek to promote and deliver upon is certain predict ability and continuity. so that japanese companies know that as they have in the past, they are going to experience a high level of confidence when they invest with us. so, we are betting on indiana for the long that. we are here to stay. haidi: so great to have you with us. indiana governor eric holcomb joining us from tokyo. this is bloomberg. ♪

haidi: let's check in on apple

supplies we are expected to see that. given it was a muted response from investors to the apple upgrade. the latest iphones on watches being unveiled overnight. a mixed picture. we are seeing some gains up by over 1%. we are seeing tdk keeping its head above water, but not much of a positive reaction across the border. analysts did not see surprises except when it comes to the pricing. it was raised by over $100. we saw apple falling by 1.7% amidst the broader decline in the u.s. tech. tech in korea's what we are watching as well, they get 75% of its revenue from apple, unchanged at the moment, as well as some of these stocks that will come online in the taiwan session and mainland china session, as well as hong kong. bloomberg technology anchor, ed ludlow was at the launch.

ed: the big focus was on a price hike on the iphone 15 promax, 1090 nine dollars, $100 that its equivalent in the prior generation. it has doubled the storage, 256 gigabytes. the iphone 15 pro, 900 $99 --. . $999 apple's most powerful chip, it is the most powerful processor to date, also boosted storage. it is -- has ray tracing which is important for mobile games. common between all the handsets that apple announces the u.s. pc connected. we knew this was coming. it'not something apple did of its own volitions, mandated by the european union, to make the port u.s. pc compliant. it brings apples iphone online with its products and other phones.

a big emphasis on development and camera technology. the iphone 15 and iphone 15 plus have megapixel cameras, a jump from the prior generation. five x magnification will zoom which represents a leap forward for photography on the iphone. we got the dynamic island without succumbing, the top sliver of the phone, packed with more visual information. also, new series nine watches and watch old trick to from apple as they put a real emphasis on sustainability, more sustainable use of products or materials. more recycled products. ed ludlow for bloomberg news. shery: bloomberg technology cohost ed ludlow. take a look at how commodities are trading. we're singh oil prices fluctuating, between gains and losses, upside when it comes to wti in the asian session, after we saw losses earlier. after we saw the rally in the

new york session. the opec report came out that oil markets could be experiencing a fall of 3 million barrels. today the first quarter, the most constrained market in more than a decade. we are also following gas prices because european gas prices, eased. lackluster demands, the european gas prices took a breather from the rally. the traders are weighing the demand outlook. su keenan us now with more on this. what is the latest on the shortfall in oil? su: it looks like it is a squeeze if you follow the data that. we talk about how opec talks about how it wants to balance the markets. the data suggests, check out the chart traders were focused on, it suggests that their goal may be to shrink inventories rapidly. look at the far right hand side of that chart. that is a third quarter and

fourth quarter deficit in supply. they are extremely big as sherry mentioned. we are talking about the largest deficits in a decade. opec projecting a supply fall of over 3 million for the fourth quarter. meanwhile, brent and west texas intermediate shot to the highest year-to-date, intraday trades. meanwhile, the u.s. energy information agency's will be coming out with its market outlook, which will give us some better clues of how the market tightness is shaping up. that will be later on wednesday. their previous estimate was a much more modest deficit by end of year of 230,000 barrels a day, that is a big difference. this is what was driving oil prices higher. brent hitting $92 a barrel. putting a closer to $100 a barrel and the upward momentum,

as you can see, is quite strong. haidi: where does this go from here? >> the question is, does it go to 100? jp morgan, capital markets, some of the more influential forecasters for this kind of thing are saying they don't see it going anywhere. again, you see where prices are going, a lot of green on the screen. you have both crude oil in new york and brent crude traded in london. those are both holding in asia trading at these elevated levels. the highest in 10 months. and the bets by traders and professional investors are moving higher to $100 oil. why is it the banks feel when i -- we're not getting to 100 anytime soon. the upward momentum, some analysts say that is exhausted for now. we have bigger picture prices

rallying 25% since last june. the prices are starting to solidify now. the real impetus for this big move forward was the saudi led opec output cuts. saudi's voluntarily cutting output in july and now extending that to the end of the year, which really juiced the gains. russia going along for the ride, by curbing their exports as well. haidi: bloomberg su keenan there. take a look at the possible impacts on currency markets. our coanchor, david ingles and the hong kong. obviously the u.s. dollar, oil correlation has broken down somewhat. do we see that correlation impacting the direction of asia affects? --asia affects? david: we may get to that point. the fact that we are having this conversation, at what point does expensive oil start to matter,

especially for a lot of the importers. india for example, the rupee has an inverse correlation. what is interesting is right now, there does not seem to be -- at least in the data -- that there is any strong indication that oil prices are at a point where every is into a point where they become counterproductive to asian fx. there are other things dominating, rate interventionalists -- differentials. you have the tide dollar which are currently negative correlated to oil. the rest of the asia affects complex, the indonesian currency , which tend to have a positive relation to oil, are still positive. now, two theories from my end, one, could be the higher the oil price that tends to exacerbate the proclivity for a more hawkish stance on central banks, which benefits those currencies.

the other thing is, perhaps we are at a point where oil prices are extreme that it starts messing with current account data which then weighs on the currencies. in fact, periods where oil was above $100, that is brent, this is the correlation between brent and the jp morgan index. have a look at where you tend to get these flips back into the negative. oil and 100, extreme moves in oil. except for where we are where oil was 100. i will mark that as well. when oil prices were cheap, that is when you tend to get strong positive correlation. in some ways, we are not at extreme levels but i $90, we're getting close to that point. shery: you mentioned earlier intervention risk, also the rate differentials. those are issues that the yuan is facing. that story remains front and center. are there any new emerging

angles? david: interesting that you bring it up. on friday, we have the pboc coming out and sending -- setting the medium-term to banks. we should not be surprised if they reduce the rate further. that underscores the point of this rate differential where it is higher for longer in the u.s., lower for even longer, may lower for china as well. the new plot twist is liquidity is tied -- tight. it has been tight in offshore hong kong. you're looking at this big spike. these rates underscore the point that banks are unwilling to lend in the slot market. now, that being said, it might not be the case, given the currency has been on stronger footing. we get that kite were setting -- we get that setting in just

under four hours from now. shery: david ingles, a weakness of the yuan weighing on the purchasing power of chinese people at a time of the recovery struggles for traction because wages are falling for millions of workers creating this under the radar threat to the government's campaign to revive growth. let's find out more from our asia government and politics correspondent. what is this about? >> well, we try to dig very deep into the data and through conversations of more than a dozen people to try to understand what is going on with wages. wage data, labor market data, it is very patchy. we know unemployment data for youth population was stop. what we have seen, essentially is that life is getting tougher for people in china's biggest cities. new hiring wages in the city, shanghai and beijing, dropped by about nine and 6%. those are the biggest declines

we have seen since 2015. and beyond new hiring, we have also already seen these job cuts in prestigious sectors like the banking sector, 40% pay cuts for some bankers, as well as in the tech sector where people who are sometimes used to getting a 50% bonus when they moved, now expecting much steeper and more moderate jobs. the other element here that is really interesting, very hard to pin down data on this but we spoke with 10 different civil servants across china who reported in one way or another, the take-home pay was shrinking. something that really stood out to me was this element that for some civil servants they are being asked to return their bonuses that they have paid over the past five years. now, it underscores the level of constrained finances for china for local governments. but even for this sector, so-called as this iron ball of

china that these balls are meant to have lifetime of security, where for many civil servants who are working have never seen a pay cut or their bonuses cut. it's a very different environment that people are juggling. one overlooked part of this, why we often focus on youth unemployment, when we dig into the data, we also see that for older people, they are working longer hours and for less pay. these consequences are ricocheting through society. shery: bloomberg's economic policy editor with another take, on china slowing economy and how it is impacting households and consumers. just ahead, we hear from the venture capital investor about opportunities they see in crypto, as valuations slide. this is bloomberg. ♪

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>> if they were to live up to the investor protection built into the current laws, it would help investors. right now, there is noncompliance and it is a field rifle with fraud abuse -- rife

with fraud abuse and misconduct. >> the strictness does not bother me, it is a lack of clarity. this is for the whole industry, not just ripple. ripple has tried to engage regulators. it's not clear what being a good actor looks like, that is when it makes it harder. even if it is strict it is fine. what doesn't work is what the u.s. and gary gensler continue to propagate, confusion masquerades as power to the sec. the more confusion, the more power they feel they have. shery: you just heard from the u.s. chair, as well as the ripple ceo on crypto regulation in the u.s. asia's largest crypto event open cities and singapore. let's return to our coverage of token 29. annabelle droulers is there standing by with our next guest.

annabelle: still making waves at token 49. i can bring in our next guest, paul veradittakit. tell me paul, because you were saying you see round investors at ripple. we had a soundbite talking about the dealings with the sec. how much is that lack of regulatory clarity holding back crypto is a sec your -- sector? >> it is making it tougher folks in the u.s. as an entrepreneur, you want to make sure that you can do what you can to do the right thing. if you don't know the right thing is, you don't know how much money you have to raise. you don't know how much money you have to put into legal. you are basically trying to get the same sort of licenses and protections as if you were a fintech for. still, not even knowing if that is enough for crypto. everybody in the industry in the u.s. is really looking from some sort of clarity, we are seeing enforcement actions, but we're are not seeing a path towards,

hey we're doing the right thing, whether a token is a security or not. it's really holding back the industry. but, what is great is we are also seeing a lot of innovation and a lot of movement on the regulatory side outside the u.s., which means that a lot of entrepreneurs are trying to figure out, what is the best way for them to go to market both domestically and internationally. annabelle: you are one of the longest standing funds in the space, $3.3 billion in assets. you have investment projects. where are you seeing the biggest opportunities? >> we believe that infrastructure is a good time to be investing into right now, especially in a bear market. a lot of companies want to try to get profitability. the easiest way to get the profitability is defined higher average customer value. so a lot of folks are trying to sell into the institutions and the enterprises and developers. what does that mean?

it means we're seeing developer tooling, a lot of new technology, and we're seeing infrastructure that is being created for things like nft's or real-world assets. one of our companies, they are tokenized and treasuries, the u.s. treasuries and making it successful internationally. we are seeing a lot of infrastructure being built, a lot in the u.s. and europe. we think that as the market picks up a little bit, as we start seeing a bit more, both the macro and also a bit more on scalability, we will see a huge rush of entrepreneurs and applications coming from asia. that's why were here now, trying to strengthen the relationships, make sure companies are well serviced in asia and that we can be at the forefront of those companies. annabelle: when he talk about

infrastructures being built, perhaps it is that pause we can have more development. even when you do develop, we have seen a lack of institutional awareness in the space. do you think, even with any sort of breakthroughs it will be enough to entice people back into the area? has the use case been built up yet? >> the last market but a lot of institutional capital into the space. they invested first into funds. we want to get educated and get financial exposure. we want to make sure we get information exposure. a lot of funds focused -- have raise capital, some institutional capital, not only domestically but internationally. a lot of the institutional capital continues to remain very, very bullish on the space. we are seeing new folks come into the space. you see a lot of etf applications in the u.s., a lot of large institutions like fidelity has mentioned they are

doing stuff in the space. jp morgan has done stuff in the space, blackrock too. for us, we are seeing interest from those folks trying to figure out how to get into defy. they need the right infrastructure. they need to make sure other counterparties -- there is an opportunity for companies to create that financial infrastructure, whether it is a bit of a more open network. or maybe there is a trend, around layer three's, or some of these blockchain companies, creating the ability for some of these institutions to have their own blockchain and run financial applications in a more secure environment. that seems pretty interesting right now. annabelle: i wonder about the price of bitcoin. the prices under the $26,000 mark. when he take a look at the technicals, -- you take a look at the technicals, the moving

day average has fallen below the two day moving average. terra put out a will list -- bullish production by next year. is that something you agree with personally? >> we are very bullish on the price of bitcoin. what we usually see is bitcoin is the first thing that folks think about when they get into cryptocurrency. it's proven to be a great store value, especially for emerging markets. that is why got into crypto. i saw bitcoin could be helpful for our entrepreneurs in argentina and latin america, where there is huge inflation and government control of currency. i've seen one entrepreneur have is value of currency go down to 03 times in his lifetime. for us, bitcoin has been used for payments. especially with what is coming up too, it makes sense for bitcoin to be more favorable. bitcoin has been a beta for the

industry. macro has factored into it a bit. especially as it has changed in a favorable manager -- weight sometime soon, it will be the catalyst for the industry going forward. and about: that was paul veradittakit -- annabelle: that was paul veradittakit, one of the standing vc funds in the space. haidi: annabelle there with paul veradittakit, the managing partner of pantera capital. we will have more out of the crypto space from the event in singapore. this is bloomberg. ♪

shery: we will be watching apple suppliers at the open, they could be active after their latest iphone and watches launch. tencent also only focus after it secured the rights to the mobile edition of the bandai protocol. asian suppliers of airplane technology could fall after boeing delivery -- delivers a drop for the second time this month. haidi: our markets coverage continues as we look ahead to the start of trading in hong kong, shanghai and shenzhen. a muted trading session. bloomberg markets china open his next. this is bloomberg. ♪

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