>> watching daybreak: asia coming to you live from new york, sydney and hong kong. we are counting down to asia's major market opens.

>> the top stories this hour, markets lower across major make decisions across the g20, oil added to inflation risk, with chevron's ceo telling us $100 is on the way. the pboc, see improved conditions in a rare beat for banks and companies, and instacart cuts its ipo, ranging up at 606 2 million dollars on its fifth marquee listing anyway. >> u.s. futures pointing high in an early going, after an absolutely lackluster day in the united states with fractional moves to the downside for the most part for major indexes. really, stocks and investors waiting for the fomc decision on wednesday, the summary of economic projections and what comes after that, 36 hours of central banks meetings around the world. kicked off by the federal reserve. now a bear market all the way,

bonds maturing at 2050 trading below $.50 on the dollar today, says bit about the debt ceiling but also the bond market in general. it looks as if when we look at bond futures that we might get a tiny bit of relief tomorrow but we will see, not that much. in terms of crude oil, this is the thing that we are talking about daily now because it is creeping higher and chevron talked about $100 a barrel of oil, and that might play into inflation expectations and inflation more broadly. the federal reserve will keep an eye this even though it tends to ignore the impacts of energy prices on the price of goods. this time, not so sure. we have crude oil in new york trading at 9225. >> the question is how quickly saudi arabia and russia could reverse their cuts to output they are, which would of course weigh in on the price. but the focus is very much on

central banks, and i countdown will have the rba meeting minutes do in a couple hours giving clues as to whether the australian central bank is looking for rates under the leadership of michelle bullock. we also see equity futures looking a little bit mixed, as you said, that word lackluster, looking range bound in the session here, kiwi stocks online to the downside. china flat right now, but we had been discussing all of the issues with china trying to win back foreign investors, and we take a look now at this chart know we have used a lot, it's a signal as to why, the bars in red indicate for investors and foreign equities, and since the start of august that has been the overwhelming thing we have been tracking here. only a handful days where investors have put money into the market. it student who single out of

many as to why china is serious about trying to prop up that environment. >> and trying to reinvigorate confidence, particularly when it comes to foreign investors. we did see the central bank trying to improve the business environment for foreign countries after the po bc governor which -- met with multiple companies. our china senior executive editor is tracking this. how unusual is this meeting and it clearly states the intent here policymakers. >> i think this sort of meeting would be very unusual in any of the year, but i think in the recent past few months it has become part for the course. we have had china's premier come out and try to encourage more foreign companies to invest here in china, we had the politburo as the result come up after one of their meetings, stressing how

important it was for china to encourage more foreign companies to invest here. that comes after all of the tensions between the united states, western countries and china, and also after we saw organizations such as the american chamber of commerce to a survey where they found american companies were for the first time in 35 years not seeing china as a top three investment. >> we were just speaking with emerging market economists who said that china's threshold for paying when it comes to the market is very very high. is it as high as all of that? i think the outlook is the issue here. they have a 5% growth target for 2023 and to be able to get there they will mean some investment from foreign companies. when the pboc calls in the likes of hsbc, ups, morgan and tesla,

there is a point, which is to instill enough confidence that that investment will continue and won't go down, if it becomes a greater drag on the economy, that is not what the government wants to see. >> how difficult is it to instill that confidence when a lot of the problems with the economies -- economy and the property sector are structural, demographic and longer-term? >> i think the longer-term problems, it is hard to see how the government is going to fix those things. but those are long-term problems, many years into the future. more immediately, some of the issues that have discouraged foreign investors are the lack of transparency in terms of data, most recently the example is youth unemployment, we are longer getting that data. there has also been worried about the continuity of policy. we have had lots of changes in

property, education, broader economic policies that have changed in beijing, sometimes overnight. that is going to discourage foreign investment. >> how concern is it that some people from the president's cabinet go missing every now and again? will investors be watching this closely echo --? >> when you have the foreign minister and most recently the defense minister not appearing in public and there being questions about their standing in the government, that may not have a direct impact on business here in china, but it does have a very big impact on sentiment. it adds to the idea that nobody knows what is happening here in beijing, that these happen unexpectedly, and for a foreign business thinking about investing billions of dollars that is not an environment where they want to put their money and

they have a hard time looking into the future and being able to tell what is going to happen next. >> thank you so much john, that is our's -- our senior china executive editor in beijing. now to new york, with the senior vice president for fully manager and investment strategist -- strategist at frequent apple investments. back to the u.s., because it's a huge week with the federal reserve and the summary of economic dot plots. we have the wall street journal saying that a soft landing always looks like one before it's actually a hard landing. does that impact the week at all? >> there's so much data that's going to be coming out of the central banks, you have the fed, the boj and the boe, there is a lot of data. let's take a step back because that is what you need to do. -- to be able to make that call, and you need to say what is the fed paying attention to, and they are paying attention to data, it shows that the forward

to medication, the paying attention to data, really makes it better federal reserve and better in terms of guiding the market, and that is why we have confidence in the soft landing. >> right, data tends to change. we have oil at the 92 plus apparel, that growth is extremely strong, pretending another rate hike or more than that. >> i think that the narrative has very much shifted, because if you look even a couple months ago, people were talking about rate cuts in the beginning of 2024. and now we are seeing should we have another rate hike. and what is driving that is the other claim number, which is persistently low, and jolt data which is physically high, and this undermines economic confidence. you can deal with -- can't deal with this policy as investors because of the ira, the chips

act, infrastructure investment, and that is what is going to buffer the economy and provide that buffer and allow us to have that soft landing. >> katrina, how much is china the wild card here, whether you look at the risk of exported deflation or at the impact on external demand? i think it is interesting that you talk about fading relevance for chinese assets, is that the best case scenario if you're an emerging markets investor? >> when i look at china, we are probably close to the peak pessimism as a regard to that market. we look at how industrial companies which are big exporters into the chinese market, they have seen the weakness. they are seeing signs that things are bottoming. and once you go through that bottom, things tend to go up. the second thing that is playing out is china becoming much more independent within itself, and

therefore its reliance on the rest of the world is actually declining at the same time as we are shifting our investment out of china and into the united states and mexico, part of the post-covid reassuring initiative. trying to reinforce supply chains. >> is there a redirection into things like mexico, in asia there has been a redirection into the japanese market and india, where would you be putting the money that might otherwise going to china if there was still a better position economically? >> japan just offers such an opportunity and you have seen some sectors within japan, just looking at large cap banks, the trading companies, there has been significant positive moves. i think that it is always difficult to say it is different this time, but for once in our

lives, based on all the research that we have done, we think it is different this time. everyone is very focused on what came out of the topics in terms of a one time book value ratio and price value ratio, and letters being sent the company. -- companies. but they are is that a company that trades at value, the market is telling you that you are only expecting that company to earn the cost of capital. and we actually think that there is much more runway as these companies focus on efficiency and use technology like ad, and they bring those tools into japan, and i think that there is much more of a willingness for japan to do that, and we think that there is much more earnings headway than the market's giving these company's credit for. >> see think that there is a bifurcation between small and large caps, because there is an was in the united states, and emerging-market small caps are really outperforming. do you look at stocks that way

or is it value versus growth? christ in the u.s. we have been very much paying attention to that trend, because the mega caps have really outperformed. and some of the gaps in valuation as you look at small caps and we have a small-cap focus, there are some of the opportunities where people have just said it is easy to be intact and in the big ai place but there are so many other derivatives and that is where we push on some of these small-cap names. >> thank you so much for joining us, the senior vice president and portfolio manager and investment strategist at franklin templeton investments. still ahead, we dig into the latest effort some washington and beijing to improve tense relations, analysis coming up with the asia society policy institute. plus, instacart set to raise $660 million in the next big u.s. ipo, details just ahead, this is bloomberg.

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styles and textures. curated by joanna gaines. >> u.s. secretary of state has met china's vice president on the sidelines of the yuan general assembly in new york, the second head of a conversation in as many days. as the two nations try to repair relations, let's talk with stephen engle in hong kong. can we see that progress is being made? >> there talking. the fact that their meeting face-to-face at a high level on back-to-back days is a good thing because jake sullivan met the foreign minister of china in malta over the weekend and yesterday we had this meeting between antony blinken and the u.s. secretary -- the secretary of state as well as the chinese secretary on the sidelines of

the assembly in new york. he is perhaps the highest ranking official there right now because they will not be a yuan general assembly for him. the big prize besides willing goodwill across the big long green tables is to set a -- i guess the path work for a presidential summit, if you will, on the sidelines of the apec summit in san francisco. that would be the first time that xi jinping advised and would meet face-to-face since early november in bali in the g20. it is déjà vu right now in the lead up to a potential summit or meeting between the two presidents. there was goodwill built from that g20 meeting in bali, but that could be derailed because of geopolitical tensions and the spy balloon incident. this is what antony blinken had to say from his position there in new york to hunt down the

vice president of china. >> from the perspective of the united states, face-to-face diplomacy is the best way to deal with areas where we disagree and cooperation between us. the world expects us to responsibly manage our relationship and the united states is committed to doing this task -- just that. >> nobody seems to be blaming the other one for causing the differences and the wrist in their relationship over the last several years, this one being very commonplace. china-u.s. relations face a lot of difficulties and challenges, he says, and he says that it needs us both to display more sincerity at efforts and meet each other halfway. the chinese are faced with mounting problems in their own domestic economy, there is also issues and uncertainties under

another one of his cabinet members after the foreign minister -- foreign minister was removed for disciplinary reasons and we have more than 2.5 weeks of missing defense minister and a lot of uncertainty there. there has been a lot of uncertainty, and problems in the domestic economy and the policy and mainland china and obviously an improved relationship with the united states would help things. >> is it not fascinating that they have this bifurcated relationship where you have these diplomatic overtures happening and seemingly warm and friendly, as china is sending warplanes near taiwan amid ireland -- visits by u.s. officials, so what does it say about the level of good faith being displayed? >> there is one thing, to say something nice and build goodwill across the green tables on the sidelines, but actions speak louder than words. it goes back to the issue of taiwan, and this is something

that jake sullivan and his kevin hart didn't talk about over the weekend. they did not move the dial on taiwan, nor what i expected two, the united states still continues to feel that it has the right to have officials go to taiwan, it has the right of freedom of navigation, china feels differently, one he reiterated that taiwan is a red line with the united states. now we have aircraft crossing the median line of the taiwan strait, 40 aircraft across the apic identifications in the southwest and southeast taiwan in the 20 hours leading up to yesterday, the yuan general saying that today will be the bigger show of force because there were more ships, at least nine warships that crossed the median line of the taiwan strait. why is this happening?

who -- there are two senior officials in taiwan, and this will not be curbed. the u.s. feels that anyone that has a position that wants to go to taiwan can, including nancy pelosi more than a year ago, which caused the big more exercises. but this time it is the governor of arizona kb -- katie hobbs as well as the undersecretary of commerce for foreign technology and standards, they're going to be meeting in taiwan with the president, white is the governor of arizona important? the tsmc has pledged to build plants in arizona. this is going to further that dialogue and that is not something beijing welcomes. >> for sure. steve, thank you so much. our chief north asia correspondent, stephen engle. >> and around -- here's a roundup of the stories on daybreak, terminals -- terminal

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>> instacart has priced its ipo at the top of the marketed range to raise 160 million in its fifth listing in a week. let's get the details from our reporter. what does the pricing suggest about the demand for instacart? >> they priced at the top of their proposed range and this had already been rate -- raised. they started with a 26 dollar share raise, and this signals

that they are optimistic now that they are at $30. they had an investor roadshow where they were talking to public investors about what they are interested in and how many shares they want to buy and at what price. this is why the company and bankers are feeling like this is a price that is poised to pop. they want it to go out further than that from day one because you want to make a good first impression on the market. >> what is behind the timing, i guess, that we see at the moment ? it's been a difficult few years for at 8 -- equity capital markets. >> it's largely been closed since late 2021, two years where we have not seen a lot of operating, but arm, the high-profile chips related company spun off from softbank went public and they did well, they went up, instacart, even though they are for the mentally

very different, they are writing off of the coattails and hoping to of arm and writing off some of that tech ipo there. >> katie there in san francisco with the latest on instacart. we could do to watch that, and arm being watched closely, we will check out the corporate stories, with morgan stanley saying that they were defrauded in a deal to invest in a luxury high skill -- high-speed rail line. the bank is elected to unlock -- have unlovely structure the deal, -- restructured the deal with that she legally, and they claim that they -- artist have no marriage. santander overhauls its retail banking businesses and is creating a digital consumer bank. it will help typify the business

and raise probability. socialist al bloomberg at the move will probably trim management layers and result in some job cuts. citigroup says that its restructuring announced last week will in laminate where of management focused on specific regions. the newly appointed chief client officer of david in living some tortoise the resulting job cuts are needed to supply the banks structure, but also means that the roles of thousands of back office workers are being reviewed. a unit of the chinese developer country garden will add a credit enhancement to a bond seeking to extend its fitful. that is according to a stock exchange filing by -- report by bloomberg news. it will add no less than 2 million yuan on the bond if it is passed. >> that's get a quick look at futures and how they are positioning for the trading session, because obviously japan was close, -- close, so we want

to see how japan is trading in the future. pretty much unchanged, but a little bit of green on the screen, and we are lower with new zealand along with it. s&p futures higher after a very long -- lackluster date in the united states, all eyes on oil, and treasuries, we saw the 10 year yield hit for: -- four point 26. have plenty more to come on daybreak asia, this is bloomberg. b(jennifer) ♪the reason why golo customers have such long term success is because we focus on real foods in the right balance so you get the results you want. when i tell people how easy it was for me to lose weight on golo, they don't believe me. they don't believe i can eat real food and lose this much weight. the release supplement makes losing weight easy. release sets you up for successful weight loss because it supports your blood sugar levels between meals so you aren't hungry or fatigued. after i started taking release, the weight just started falling off.

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>> i watching daybreak -- you are watching daybreak asia on the countdown to the opens in sydney, seoul and tokyo, australia shut for a public holiday on monday, and trading

is fairly flat as we get underway. broadly, we are looking ahead to a fairly mixed session today, it is just a bit of wait and see as well, given more of that countdown to the slew of rate decisions to over the course of this week but notably kicking off with the fed on wednesday and ending with the boj at the end of the week and a lot of focus on whether the bank of japan starts to shift away or indicate that it could start to shift away from this negative policy-setting, watching began their trading closer than the 148 level. let's change on, because also opening at the top of the next hour will be oil markets and brent crude in particular. we are now looking at near the $95 a barrel level, a lot of economists and analysts say that 100 is within sight. but this chart here is looking at both brent crude and wti which is essentially now flashing overboard signals. they are assigned about that key 75 the market, certainly one to be watching.

the fundamentals do look tight, a lot of the investors attention is focused on supply cuts from russia and saudi arabia. the question is how quickly those could be reversed and if they are not reversed what will the -- be the impact to the longer picture. >> exactly, and inflation expectations, we might hear more from the federal reserve on month -- wednesday. it's day four of the united auto workers strike in the united states, and they are still waiting for counterproposals from ford, gm and others. the latest proposal made by the uaw still has an -- negotiation ongoing with the choice biggest on record. the union has lowered its demand for a pay raise reportedly. u.s. greens have closed air operations -- marines have closed air operations as the search continues for missing at 35 fighter jet. the warplane was left in

autopilot over south carolina on sunday after the pilot was forced to eject. the military has called on the public to cooperate in the search. the disappearance follows to recent marine air crashes. justin trudeau says that there are credible allegations that indian government agents were behind this year's killing of a prominent sikh leader in canada. trudeau told parliament that he raised those concerns directly with narendra modi at last week's g20, he has expelled the head of india's intelligence agency and has planned expedition in october. officials are said to have intelligence that the defense minister has been removed from his post. neither beijing or state media have provided any information on the minister who is seen in public late last month. he was the subject of u.s. sanctions and some analysts believe his removal could have been a roadblock to higher level

military talks. >> joining us, a fellow on chinese politics at the asia society -- a politics center for analysis. we see this same playbook, a couple of personnel like the x foreign minister, why is this happening with people that xi jinping has selected himself, this high-level inner circle volatility going on within the leadership? should this have been prevented before appointments were made? >> absolutely. it shows a deficiency in the vetting process from the president ahead of the party congress. the more that he has been able to gain political power the more he has been able to get his way in terms of personal appointments without the stringent betting or more

contingent -- contentious negotiations that would have taken place previously, where there was more into fractional competition within the communist party, now it is just xi jinping. and that has led to a kind of slackening of those types of investigations, and one of his big priorities has been to crackdown on corruption, and it's not a good look to have a few of your handpicked generals or prime ministers being taken out so early after they were appointed just last october or in march and terms of the foreign minister. -- like the foreign minister. >> he took a helicopter to the top, he was a rising star. do these removals, purges, matter in terms of policy, because we know how top down from the very top it is. >> that's a great question. the answer is no in a specific

sense. neither of them or the rocket force generals, none of those people are in xi jinping's inner circle. we don't see the edifice start falling apart. these are not a threat to his palooka power or his border policy program, i think that there are some interesting flow on effects to think about interobserver china's military readiness, we think that the recent purchase suggest that the president is concerned about the policy -- quality of leadership in the pla, which makes it less credible as a fighting force around the region and the world. i believe that this kind of mitigates against xi jinping taking seven military action as some people might think is imminent. i think that if you're not confident in your top generals you're unlikely to put them into high risk situations like in the

taiwan strait or the south china sea. that might kind of put something of a pause on some long-term plans. although, at the technical level we will not see china retreat from those long-term territorial claims. >> there is that terminal, and he faces the cyclical slowdown of the economy, the structural challenges that will continue to court china in the year to come -- he is to come, is that a threat when you throw in the decoupling of strategic competitions, do something to have to give? >> i think that these are all problems for xi jinping that he wants to overcome, i think that they are threat potentially if they handle them really badly, it's seen as kind of threatening the fundamental position and security of the communist party

regime which would hit a threshold where others in the party and the military might think is worth taking the risk to remove that. we are a very long time away from that scenario. and xi jinping is base of power is not winning elections, it's these key levers at the top with military and security services, the organization department that select personnel, the propaganda apparatus, and xi jinping has an iron hold on the leadership of those institutions. >> at the same time, you have to wonder what are the consequences of shifting public consciousness away from things like common prosperity, or harkening back to national security? >> we see that being a theme of the first few months of xi jinping's term, campaigns

against potential spies, getting people and students and even schoolchildren to report on suspicions that they might have about spies in their midst, a whole new level of that type of rhetoric compared to the first 10 years of his rule. my assessment is that part of this might be trying to shift the basis of the communist party's legitimacy further towards protecting the chinese people from threats abroad whether to the united states and its allies, or from within with potential spies and anti-party elements as it would say. and using that to conversation first -- compensate for some of the lost legitimacy from the economy and slowing growth. growth is still a reported goal for the party, xi jinping needs growth for his political objectives, but a theme has been

achieving, in his view, a better balance between chasing economic develop into an protecting national security. i think that the growing attitude in the united states and coronation with its allies has become reflective on the biden administration and heightened that sense of threat from the outside in xi jinping's mind. >> we see capital outflows from foreign investors going in basically one direction. we have seen these from the likes of the pboc meeting with foreign companies, does that make a difference because investors want predictability and we know whether it is policy or personnel issues there is not much of that in china right now. >> it absolutely makes a difference, especially when you think of the marginal decision that firms and investors are making. the more that you are concerned about the security of your personnel and here operations,

especially with data increasingly in china, the less likely you are to make that next big investment in china and the more likely you are to consider whether you can begin to make operations in india or vietnam, or mexico or wherever it might be. and the more that the president prioritizes national security and directs companies towards that, the more costly it is that for them to operate in china because that risk premium continues to rise. the more likely they are to begin thinking about how to probably not decouple, china is going to be the number two economy for a long time, firms want to keep their operations in china, but to de-risk, to de-risk their approach to china and insulate supply chains from a potential for the cook political shock. >> thank you so much for joining us, neil thomas, a fellow on

chinese politics and the center for chinese politics, at the asian society policy institute. the outlook from -- oil markets and betting on $100 a barrel. analysis next with bloomberg naf. this is bloomberg. ♪

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global transition to cleaner energy, but one in which oil continues to play a major role for decades to come. speaking at a major industry event in calgary, both ceos said that capturing and storing carbon is one of the best ways to reduce emissions. they also argued that cutting oil used too fast would be dangerous given the growing demand for energy. crude prices are trading at 10 month highs as the physical market shows signs of tightness due to cuts from opec-plus producers. let's get to bloomberg naf analyst wayne tan for the market outlook. what is driving prices higher beyond these cuts? >> thank you for having me. we're looking at global oil inventories very closely, and specifically how these are differing against norms. the item behind that is to get a sense of how aggressively

inventories are moving against past trends, and we are at a time of the year where it is normal for crude inventories to fall, but crude inventories are falling faster than seasonal trends. physical markets are tightening relief quickly and aggressively, and there are two key reasons. first is the saudi and russia production export cuts, which has already been talked about by analysts, the second is china's resilient demand growth, despite its sluggish economic activity. >> as we look through 2024, what does that look like? >> we expect supply growth to slightly outstrip growth and we expect the global oil market balance to lose a bit going into next year, we are under the assumption that most of the

opec-plus production cut deals will remain in effect through all the 24. this year we expect better chemical and aviation sectors to be the key driver of global demand growth. geographically, asia will make up the majority of the growth we will see next year, but not to say that there are not headwinds. the first on that we should think about is the ramp-up in nonparticipating members in opec-plus, like iran and libya. we have seen them ramp-up significantly in the past few months, according to our contractor, suggesting that crude production levels exceeded asperity in august, and it could go out to several trillion barrels per day.

>> we are seeing diesel shortages, what is driving those shortages? >> a lot of that is due to delays in quite a few downstream refineries and capacity that was expected to come online. what did not do so. the largest one that we can think of is nigeria's refinery, 600,000 barrels per day incapacity, they were supposed to come online earlier this year, but failed to do so, and we expect them to only come online sometime next year. that has caused a lot of tightness in diesel supplies in the atlantic basin, particularly in the u.s. as far as that and europe. i think one of the largest factors, in this as well as china's demand growth, despite sluggish economic activity, this is like the to be a one-off with

very little upset -- likely to be a one-off with very little upset to the economies involved. >> are oil analyst wayne joining us there. the chinese demand for iron ore remains strong. while china's demand will level off in the future, the global need for steel will continue to grow at a healthy rate. >> the demand is good. you will have seen that there is tight supply and demand, prices have gone up the last couple of months, etc.. the chinese minds are producing. and there is demand for their steel. >> d.c. that continuing, is that sustainable as we get into next year? >> there is a was uncertainty about the future, of course. we tend not to look so much at the short-term. we tend to think about the long-term and 5-10 years down the road. demand will continue, there will

be more recyclability and slightly less demand china's demand is probably going to stabilize what you see developing countries like india growing significantly, but we see a good stable demand in the long term for the iron ore production. >> we will be remiss in asking the -- not asking what is going on in the market here, one of the worst-performing commodities out there in terms of what we see in the futures market, how much of that is impacted by russia's supply where that supplies going? >> the usf action put on a tariff in russian ellie mae name, that is not the case around the rest of the world, and we are not doing business in russia. we are condemning the war and therefore we have seen

recommendations and we would have thought that -- there were some limitations on how to import russian element name. i don't think that we can limit on russian aluminum. it's just a significant supply, and what of the challenges that we are having in a week like this week, climate week, unfortunately the price is the same whether you are selling low carbon aluminum or high carbon aluminum. and there is that huge difference between the -- because it's the most important metal on the planet, and if you use -- it's the most carbon intensive metal on the planet, and if you use a lot of carbon it's intensive. >> coming up next, the central banks this -- decisions dominating the counter, an inside look at the boj and -- the calendar, and inside look at the boj and their policy decisions. this is bloomberg.

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>> the bank of japan's decision moving into central finance due to its history of surprising market, the governor might be laying the groundwork for the that. wrapping up the negative policy rate, let's get more from the japan korea economy and editor

paul jackson. paul, five months into his leadership at the boj, it's really interesting trying to follow the narrative. we had the big market reaction to these comments and a report from insiders saying that traders actually misinterpreted his comments. and now we are also hearing this new report that he is really kind of willing to take a different approach to his predecessor. at the end of the day, do we know what the risks are? >> risks in central banking are always that we have three kind of main takeaways from the first five months of his time at the helm of the central bank, one is that he has achieved a bit more than expected in terms of his stripped back guidance on where policy is going, he has gotten rid of promises to lower rates or do that kind of thing. he also widened to the band

around the yield target, so he has made the yield curve control element, this complex stimulus framework, and made that less relevant, paving the way to get rid of it out of these recent comments in the japanese press about the possibility of erasing the short-term interest rates. that is probably a lot more than expected when he came in. we've also seen that he has a different medication style compared to the last governor, he was very much state on message, deliver the matter, almost like dogma, where's the weight it is thoughtful, -- you is thoughtful, he talks about various scenarios and seems to consider every question. he comes across as much more willing to have a dialogue in a conversation.

one other thing is also mentioned fx volatility, which is a little unusual in a framework of a central bank governor, of course. that also carry -- carries risk, you touch on fx, and you also risk getting into trouble, as some of my colleagues refer to this as been bernanke problem. -- the ben bernanke problem. what does that mean, wait a minute? wrong end of the stick. >> will have to ask you next time if he is a devil or a hawk, because it is one of the bus fasten the questions that has a lot more to it than meets the i. that has been reported there. thank you so much for joining. these are the stocks we are watching when trade opens in korea japan and australia shortly. shares of agent energy producers might rise with oil trading around 10 month highs, keep an eye on what side, central speech

energy and s oil. watch out for suppliers on return from the public holiday in japan, liming in new york as they consider preorders for the latest [indiscernible] and while they are bullish on japanese tech, they also seek rising default risks for chinese developers spite their recent policy support. the market opens in sydney, seoul and tokyo coming back online up next. this is bloomberg. ♪

>> this is daybreak: asia, counting down to the major market opens, and it has been fascinating because it is a

timber not known for being a crazy volatile market, certainly in the u.s., it has not been, lots of ups and down -- down's, and lots of talk about with the fed meeting kicking off soon. >> we've got you for volatility when it comes to what asia is doing, particularly when it comes to the china markets, which had a hard time. we will see how much that plays through today as we watch the situation when it comes to property developers. >> a lot for investors to be contending with, but the opens for japan, south korea and australia and the start of trading for treasuries, the focus is very much on japan has become online given that we are shut for a public holiday on monday. as you said, funny we saw some weakness but subdued trading coming through on the wall street section and -- session

and concerns building on china. even though we saw the nikkei coming down to 25 to the downside, not unexpected, we see strategists turning even more bullish on the outlook for japanese equities. goldman sachs is among the latest upgrading their forecasts, they see those corporate governance reforms, what has been a devilish bank of japan, really pulling it apart, dashed of issues, -- dovish bank of japan, and now they are trading at a $145 yen over the coming three years so that compares to a previous view that began would appreciate during this stretch. so they that weighs in on the outlook for rates in particular, the yen trading to that 148 level ahead of the bank of japan meeting friday which is shaping up to be a wild decision, the 10 year yield trading flat.

let's change on and take a look at what is happening in korea because the focus here is different in the session today, very much concentrating on ipos as we come online because the are awaiting confirmation of the pricing for robotics. this is the robotics arm of a company which is an industrial conglomerate inside of south korea. the unit is expected to raise nearly $300 million and we already have local media out with this saying that they have set the ipo price at the top end of the range. we are still seeing a little bit of pressure as we come online, but it comes online with the robotics unit, this will be south korea's biggest ipo of the year when it does start to trade what is expected next month. let's change on and take a look at what is happening in australia has become online here and also the outlook for brent

crude, because you could see that we are getting close to that $95 per barrel level, there are technical indicators telling us that both brent crude and debbie ti are starting to look oversold, or overbought, rather, but certainly, traders are very much focused on this underlying fundamental and the supply side is looking tight as we look at those cuts from saudi arabia and russia. how much we are building up to the inflation picture, in particular with a big week for the likes of the fed. the ecb, boe and others, they want to be watching and also the rba meeting minutes do in the next hour. certainly, a lot for investors to be focusing on with the asx 200 under pressure. >> our next guests top conviction call is japanese stocks. the head of asia societe generale. how much is this a yen call?

would the yen change her mind if it started to strengthen? or should there be intervention? >> what is happening on the japanese equity market is very interesting because you have policymaking in the u.s. with this fiscal expansion and tight money which has meant the japanese market as the main beneficiary in the region. but also, what we are seeing on the specifics of the japanese equity market, even after the foreign investor spoke, only the corporate sector is busy by the stock market, the valuation when you are making it on the risk premieres is also remaining attractive, even if you are seeing some rare appreciation of

the japanese yen, and don't forget that we are actually undervalued on the japanese equity market, and we might be able to make some progress, we have slightly raised our target and slightly raised our location for you. >> that's fascinating, and elsewhere in asia, it japan is your top conviction call, what is the next one? >> japanese is the top conviction, and we prefer them to emerging equity and market assets. when you look within emerging issue, you have to find them relatively well positioned in this context of higher for longer interest rates in the

u.s. and no immediate recession, korea is a good candidate, given high-frequency indicators that we are seeing a turning and -- on indicators like price, and we have just the which could be challenged by higher prices, we have -- bond prices, and we need to be discriminate. we do see opportunity in that market. stc opportunity in chinese assets that are selective, like the economy bottoming out and not accelerating, and the crisis in the property market still continuing? >> china has, from an equity market point of view, to key

elements, policy and growth. we have seen some signs that now acceleration but at least some form of bottoming which is something that is encouraging and we are graduating with a targeted measure to support the housing sector, which is still very much deeply depressed. but at least there is some direction. given the valuation where we are today, i think that we need to keep exposure to the chinese market if we have been underweight on the market for a year, and we're going to change right now, at least with some exposure, especially on the consumer investment in this. -- this stretch of time. >> it is a -- is it a one-way on the yuan?

>> on the yuan, we think that there will be some gradual depreciation, it's going to continue, and what we see in this moment where we have corporate level -- deleveraging and housing pressure is very favorable to move bonds to equity and to remain on the -- under pressure with the very controlled type of depreciation. >> frank, talk to us how you feel about the two popular traits in asia-pacific, one as japan, is this time different to you, as well as some of the flows that we are seeing into indian assets? >> so, what is interesting when

we look at this is that we have very dispersed valuations, china pretending to be on the lower and and asia on the higher end, to have an overweight position in the equities is not only because we have some momentum which is positive on the price and on the earnings, but also because of the terms of growth and the dynamics of growth, less dependency on some of the factors which have been very much impacting the emergency accent -- assets. we have been highlighting india for most of this year, today, we

tend to see the valuation, which is quite limited. but as we were saying, we can be more discriminate and one sector, like the i.t. services which have been very much impacted by some trouble of regional banks in the u.s., is starting to become more attractive and that is where we would like to put some of our money. >> always good to chat with the afraid can get your investing views. the head of asia equity strategy at societe generale. we see stocks coming online, and these apple supplies with movement. >> we are looking at a mixed date with trading underway, and japan gets more than 30% of its revenue from apple, but these stocks are in focus because we are seeing iphone shipment delays growing, a signal to us

of high demand for the units, but the u.s. and china sea delays until november for promax models and some users have had issues with ordering new models. the iphone 15 model is becoming available for preorder on friday or last friday rather in more than 40 countries that were introduced at an event last week. the price tag starts at near 1200 u.s. dollars. that is the state of play as we get japan back online for a public holiday, mixed fortunes here, on its biggest supplies for apple on the nikkei. let's change on, another group of stocks in focus, we saw these energy names leading on the index yesterday and we see that further advancing for some of the biggest energy companies in a ship. you can see asia and brent crude just online in the last five

minutes, closer that 95 dollars per barrel level, and close to 100 is within sight, it is the supply-side fundamentals in focus given the cuts from russia and saudi arabia and analysts say that the outlook demand from china is what is not clear just yet. tentacles as well saying that we are at overboard levels. let's change on and take a look at ipo's which are in focus. we have pricing expected for doosan robotics, but softbank is in focus as the company has just put out a press release for an option sale, and they will be booking a capital surplus of more than 5 billion u.s. dollars. softbank was one of the big beneficiaries out of the arm listing and that company already attracts a bearish call very much the focus. bernstein saying that it is too soon to declare them and i winner and we have already seen the arm stocks under pressure,

and softbank trading down at more than 2.5% at the outset here. that robotics unit is planning to set the pricing today, we have local media saying that it is coming through at the top end of the range. dusan did fall in the price session and it does own more than 90% of that unit which could still be a big beneficiary from what could be south korea's biggest ipo of the year. >> annabel, thank you for all of that. still ahead, the outlook for china's property market with colliers hong kong as the government struggles to keep the sector afloat. we hear from mercedes-benz ceo first on why measures to decouple from china are putting healthy competition and global supply chains at risk. ♪♪ this is bloomberg.

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-you just get me. -and they'll get you, too. take your style quiz today. >> china central bank has promised to improve the business environment for public companies after they met with firms including tesla. the senior executive editor is in beijing. this was an overture to show companies should still have confidence investing in china. >> it has become increasingly clear that chinese officials in beijing want to make sure that foreign business continues to invest here in china and they want to make sure that they have the confidence to do so. the governor of the central bank is the latest official that has come out to say that china will

treat foreign companies fairly after the premier said pretty much the same thing a couple months ago. even after the politburo and its meeting in july emphasized the importance of getting businesses to continue to invest. >> where is the line, because it seems like a seesaw, if you want a company to invest in china you give the company what it wants, but china cannot do that and that every company would want something different. >> i think it's true that the more pressing dilemma from the government in beijing is want to the economy to grow at foreign investment here in china, but emphasizing the need for greater national security measures, we are seeing things like the espionage law, in terms of crackdown and consultants here in china, we have seen that in terms of more and more data

becoming available to for businesses who are trying to determine that -- whether they want to invest in china. >> thank you so much, john. that is john speaking to us from beijing. there mercedes-benz css measures to decouple from china are up risk to healthy competition and global automotive supply chains. he spoke to us about the eu's investigation into chinese subsidies for vehicles. >> were not financially where, we -- we have fundamentally good business that has grown in china over the last 10 years and we are continuing to invest in china to make sure that we bring the product that chinese companies -- customers are expecting from us. it is important in these types of discussions to not forget what has made us so successful over the last decades, it has been opening up markets, free trade and free competition, but

also a level playing field. as long as all of those frameworks are in place to make sure that we can do business in a sensible way we are not worried. >> we have and eu inquiry into chinese car imports. don't you expect beijing to react with countermeasures? >> we will see how this plays out, and what comes out of that. we like to remind people that open markets is what drives growth and wealth creation. if you look at the history of our company, it did not take us more than 15 years to figure out that germany is not the only attractive market in the world and we have been here in the united states for more than 120 years now. companies go global, competition goes global. we had the japanese come to the united states in the 80's and 90's, then korea's -- the

korea's with tesla, and now we are going into electrification. let's keep the markets open and let them participate and divided out. >> that was the ceo of mercedes-benz speaking with matt miller. more to come here on daybreak asia. this is bloomberg. ♪

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>> oil prices may soon reach the $100 mark due to tightening supplies, the global economy can withstand such a price i, according to a guest. >> it looks like it that we are moving in that direction, the momentum supply is tightening, you can see the is gradually building. the would suggest that -- trend

would suggest that we are on our way and getting close. >> guy in london, what impact will $100 a barrel have on the u.s. and global economy? >> those are certainly higher prices than we tend to see over the long-term, and it will have some effect on the economy, what we have had higher prices here now for most of this year and certainly all of last year, and that has not arrived. the underlying drivers of the economy and u.s. and globally will remain healthy. it's a drag on the economy, thus far, i think the economy has been able to tolerate it. have you adjusted your price tag? are these higher prices sustainable for the long term? >> we take a long-term on supply demand policy technology, we've

not changed our long-term price, we don't chase i very often, in the short-term. we went back to the pandemic for things was down, there was war, this has been a stretch of time or prices have been unpredictable, and not what you would call midcycle. >> if i work for you, if i work for mike worth in the work for chevron, with this be my cue to say mike can i have a pay rise please? >> certainly seeing what you are seeing -- saying is a reference to other parts of the world, we see labor assertively stepping forward and saying that we want to be compensated and we see the inflation in the economy and wishing companies recover. we have had a very strong pay program last year for employees and we try to stay competitive and i would expect that we will

continue to do so. >> that is how they are getting on to strike action in australia. cargoes have not been impacted, is there a point where that would change? >> we certainly hope that what we will see is a negotiated agreement. there isn't australia -- an agreement in moechella. we have been at the table in good faith. >> our guest speaking to our commentators now, and su keenan joins us, and premiums are searching for physical barrels, it's a question when or not -- and not if for some investors and traders. >> we heard them say that there are a number of factors, including the possible strike in australia as rising prices, but this has to do with what is going on with the physical market, it is really leading this latest rally higher across the world where we have premiums for physical barrels surging in the middle east, azerbaijan,

even rushing -- russia commanding premiums because these are going -- trying to make enough decent -- diesel. he will see the bullish analysts arguing that even with crude now in the mid 90's, you see published positions rising, there are still many funds that are under invested in oil, and the theory is that once the rest of the funds jumping and become -- jump in and become invested, that could go higher. this shapes the oil's future curve as well. look at the supply and demand issue. supplies have been tapering off and demand has been rising. where going into the winter season in the and europe, and check out the five-day charts, all of that is pushing oil higher along with physical demand in terms of the curve on

monday, the nearest brent futures contract was at a premium of more than a dollar to the next month. that structure known as the acquisition is indicative of scarce supply and is the biggest since november. even the most bearish analysts, look at the weight crude has barreled higher, even as analysts start to see that $100 most -- looks more likely, especially with geopolitical risks like -- in areas like libya and nigeria. su keenan there, we have breaking news crossing the bloomberg on country garden, we have been watching for this debt vote, and the extension of the dollar bond as well. country garden has gotten approval but -- to extend a total of nine yuan bonds, they have gotten the nod to extend another yuan bond, a total of nine bonds. we have been watching this, a

chinese developer that had been facing to more debt tests, the initial dollar bond interest and credit reversing on its extension to pay the one note. it is the latter that we have been following given the fact that they had until 10 p.m. beijing to vote on that proposal to stretch the payment by three years. this is the local bond due on october 21. $77.66 million on the line to be paid out next month. we continue to watch country garden

annabelle: this is "daybreak: asia." we are a half-hour into the session for seoul, sydney, and tokyo, but there is willie one group of stocks to focus on in

particular, and this is the japanese financial ones. even though japanese markets held back for a public holiday, we did see movement on the nikkei. japan banks are really moving to the upside across the session, and that is just another clue as to how investors are approaching the boj meeting later this week and if we will start to see any sort of indication that the boj could be nearing a shift away from negative rates and also some sort of further policy normalization, so that is the outlook for japanese banks as we come online. you will see when you look at asian markets broadly -- as i said, we have a few markets trading. we are looking flat, but financials really are the standout sector. also in focus are the energy names. broadly, and a lot of upside coming through with oil, of course, brent crude approaching that $95 a barrel level.

>> thank you. let's check some of the top global stories. ap reports authorities have found debris believed from the 35 stealth fighter jet that crashed in south carolina. search efforts have been ongoing for the missing $100 million warplane after its pilot was forced to eject. the u.s. marines have caused operations for two days to review safety practices. it is the third event classified as a class a mishap for the marines over the past six weeks. five americans freed in a prisoner swap deal with iran have landed in qatar. in return, washington is releasing five iranians in u.s. custody and allowing tehran to access billions of dollars in oil revenue that was previously under sanctions. the latest steps in diplomatic efforts the u.s. hopes can ease tensions. canadian prime minister justin trudeau says there are credible

allegations that indian government agents were behind this year's killing of a prominent sikh leader in canada. trudeau said he raised those allegations directly with the indian prime minister, narendra modi. the u.s. secretary of state -- sorry, vonnie -- sorry, haidi, continue. haidi: thanks, vonnie. >> from the perspective of the united states, face-to-face diplomacy is the best way to deal with areas where we disagree and also the best way to explore areas of cooperation between us. the world expects us to responsibly manage our relationship.

the united states is committed to doing just that. haidi: for more, let us bring in bloomberg's chinese government reporter who joins us from beijing. i guess more engagement is also better than less or none, so progress is being made? >> yes, the engagement continues . they talked about apac in november. the high-level engagement continues. we have that slew of u.s. top officials in beijing. both sides basically agree it is good to try out. it is a lot of repeated talking points at this point, so we have not really seen anything concrete come out of them, but the talks continue, and that is seen as positive by everyone. haidi: these difficult -- these

diplomatic overtures are happening at the very same time as china sending warplanes to taiwan and amid visits from u.s. officials. what does it say about the amount of good faith to displayed by u.s. and -- by china and the united states? >> that's a good point. we have seen a record number of planes. bloomberg has tracked them over the past three years and it was the most in that timeframe. 103 on monday. china is keeping a close watch on this area. it is coinciding with visits by u.s. officials. i've never said why there are so many warplanes out timing-wise. of course, there is no let up in the intensity around taiwan, and we are continuing to see those warplanes. haidi: at the same time, there

is quite a lot of domestic political intrigue and turmoil, right? do we have any more when it comes to the whereabouts of the defense minister? lucille: absolutely. this is really just adding to the intrigue, not only for governments but also for investors. it is the longest period since he has taken the helm as minister in march of this year. there has been a lot of reporting of corruption over equipment procurement, so this kind of comes on the heels of these two generals that were summarily replaced. there is seemingly a lot of turmoil in china's defense

ministry. that is something we are watching closely, and it is adding to those financial platforms, coming on the heels of the foreign minister who also disappeared and we have not heard any updates on his whereabouts. that has been more than a month now. haidi: thank you so much. we discussed the disappearance of li qiang through with neil thomas of the policy institute center for china analysis. he told us residency -- president xi is increasingly concerned. >> it shows a deficiency in the vetting process from xi jinping's perspective ahead of the 20th party congress. the more he has been able to gain personal political power, the more he has been able to get his way in terms of personnel

appointments without the kind of more stringent vetting or more contentious backroom negotiations that would have taken place in previous decades. there was more enter factional competition within different powerful groups within the communist party, but now it is just the xi jinping show, and i think that has led to a kind of slackening of those types of investigations because one of his big priorities has been to crack on corruption, and it is not a good look to have a few of your handpicked generals or foreign minister ministers being taken out so early after they were appointed just last october or in march in the case of the foreign minister. >> he was really interesting because as many said, he took the helicopter to the top. he was really a rising star. overall, do these removals, purges, reappointments, matter in terms of policy setting? we know how incredibly top-down,

from the very top, it is? >> it is a great question, and i think the answer is no in a specific sense. none of those people are in xi's inner circle. we are not seeing the edifice falling apart. i don't see this as a threat to his political power or his policy program. i think there are some interesting flow on effects to think about in terms of china's military readiness. i think the recent purges suggest that xi is concerned about the quality of leadership and the people's liberation army, which makes it a less credible fighting force around the region, around the world, so i think that this kind of mitigates against xi taking any sort of military actions that

some might think are imminent. if you are not confident in your top generals, you are unlikely to put them in high-risk situations like the taiwan strait, the south china sea. you might kind of put something of a pause on some of those long-term plans, although at a tactical level, we are not going to see china retreat from those long-term territorial claims. haidi: neil thomas at the asia society policy institute speaking to us earlier. much more to come on "daybreak: asia." thisbloomberg. ♪

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haidi: country gardens creditors have reportedly approved the latest extension plan. media outlets reporting the developer has been given the nod to extend its bond due in october. country garden is now able to extend a total of nine bonds. it's unit also added an enhancement. our next guest says default risk among chinese developers may rise continuously despite recent policy easing. let's bring in the head of valuation and advisory services. great to have you with us. what is the latest news of extensions taking place at

country gardens? this sort of extends kicking the can down the road and hoping the situation stabilizes? does this give you any kind of relief at all? >> ultimately, yes, but it is already the third time extending the bond from the country garden side. unfortunately, they are -- there are around 62 developers facing this potential default in the market, and only 12 of them are actually restructuring their bond or financial, but the remaining developers remain quite passive. yes, they are one of the biggest unsold unitholders were a developer has been extended so cash flow remains stable at this moment, but i think the potential risk is just staying there. haidi: the situation you talk about when it comes to the l-shaped recovery -- if you can

call it a recovery, i guess it is a stabilization if it is a l-shape, but the problem is so much household confidence is tied to the housing market. how does that play out? >> the current new-home sales number, we are unlikely to go back to the pre-peak level and the l-shaped, yes, sales remain low and that may last two to three years because they are going to see sharp changes. consumers are not confident to buy product developers' product because they are concerned about delivery of the final product. they have cash flow issues or potential default, so i think this is more structural changes, and also the other side is not only the developer side but also the consumer behavior change. the demand has been weakened.

if we look at the last three years, the occupancy of actual housing in the second or third tier market will remain below 50%. if an investor or anyone looking at a second home, if they cannot rent out their house, they are not confident to buy, so i think there's two different angles when we look at it. >> are we going to see this over and over and over again over the next few years? do creditors have any choice but to accept extensions? >> you are right. i think we are still under the financial bubble because a lot of banks are not able to realize or realize a loss, so they are holding up the bond and loners or shareholders are waiting for extensions so that the market recovery would help them to realize their repayment, but i think to be honest, at this moment, if they will be able to

sell these new bonds on the way or already billed but not yet sold, i think this is the pressure mark and developers are having a long time getting new cash. looking at the pboc, the interest rate has been quite low . in the last two years, the government was supporting easing the interest rate, unlike other countries, but now developers are not able to reach more money and banks are not giving them a new loan. i think it will be quite a challenge. you can see the extension also happening about three years ago with country garden. people are waiting or bondholders are waiting for the

recovery to gradually help consumers buy more units in the market. vonnie: even with incentives, big or small as they are, how do you convince a sumer -- a consumer to buy a house, particularly when you've got at least 50% of the youth in the population unemployed and dimmer prospects than a year ago? >> i think the main issue was because developers are spending too much at once, so they have been buying lots of land from second and third tier cities and continuing to supply in the market. that was an oversupply issue and the migration of the population moving to the first-year city -- first-tier city. all these happen to be unfortunately at the same time, so i think this will be quite uncertain for the next two to

three years. consumer behavior -- i think developers are only able to deliver product one by one. i think consumers will gain confidence, but i think we will only start from the first-tier cities and second and third tier will take a little bit longer time. haidi: how much consolidation do you expect to see among developers at the end of all this? in the next few years or even in the next decade? as you point out, chinese demographics are going to make for a very different level of property demand. >> the soa's in the market, trying to collect those unsold units or under construction units to deliver to the market, i think that was sort of the central government's direction. by the end of the year, we expect about 60% of those, the

products under construction will be off sold by soe's. that will help consumers who are credit worthy to get their home finally. i don't think government will be bailing out developers by cash, but the price correction has to come. now looking at a further discount, if we look at a statistic, actually only 5% decrease power overall 10% decrease on the surface of it, but developers have a lot of incentives at the back of the scene, and that is happening more on the second or third-tier cities. the price adjustment, it is actually up to 30% on certain cities. if the price resets and that is more reasonable to absolving the market, i think that will also help.

vonnie: thank you so much for your perspective. coming up, do some robotics reportedly selling its ipo price in what could be korea's biggest listing this year -- doosan robotics. this is bloomberg. ♪

yvonne: -- vonnie: korea economic daily has reported that doosan has a set its ipo price at the top of the market range. let's bring in our equity capital markets reporter. it seems to be a theme, but tell us the latest about this particular ipo. >> good morning. there's a lot of expectation about this ipo in south korea. as you mentioned, there are reports within the korean media this morning that the ipo was priced at the top of the range. this is very significant. this is very important news because the offering itself was already impacting the korean market over the past few weeks because there was a lot of speculation that shares were being sold at the top of the range. there were even reports saying the range itself could be raised

because demand was so high. we saw a bunch of other companies already listed and somehow being impacted by the fact that there is, like, this very, very strong interest in the sector as a whole. the parent company called doosan corp, it is a large conglomerate already listed in seoul. there is quite an increase in interest over the past two to three weeks since the announcement was made in korea. a lot of analysts are saying yes, there is clear interest in the sector, but at the same time, it is hard to say for how long this excitement may last. it could even somehow fade before the stock is listed next month. haidi: comparatively, it is not a huge deal, but why is it considered important?

>> that is also a very, very important point. we are talking about 316 to 320 million u.s. dollars. this is an ipo that if we look back within korea's stock market over the past three years or so, we would probably not be giving this much attention to it, but if we actually put this in perspective and look just at 2023, this is the largest ipo in seoul. most of the deals that were priced within the korean market this year were smaller than 100 million u.s. dollars, and i have and doing quite well. we need to be fair. performance is good. there is interest. there is demand, but at the same time, the market has been a lot slower than it used to be. there's been a lot of changes when it comes to regulation since 2021, for example, and we don't have the large billion-dollar deals as we used to, but this is quite a significant sector and the

biggest deal of the year. vonnie: should we expect more listings in seoul soon? >> absolutely. there's a lot of expectation we should see listings in the upcoming months. haidi: very, very busy when it comes to the ipo front these days. some stocks we are watching ahead of the opening in hong kong and china, oil producers in focus. crude hovering around 10-month high after volleying for three months straight. we heard from chevron that potentially $100 a barrel is not so far away. country garden clearly front and center, just reportedly receiving the go-ahead to extend , so a bit of respite there. plus, the french environmental agency will detail as soon as today which evening models will be eligible to receive an

ecological bonus. coming up in the next hour, and assessment for the health of the chinese economy. are there any bright spots ahead? plus, the drip feed of policy support coming from beijing. that is it for "daybreak: asia." markets continue to look ahead to the start of trade in hong kong, shanghai, and shenzhen. do stay tuned. the china market open is next. this is bloomberg. ♪

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david: good tuesday morning. it is 9:00 a.m. in the city. welcome to bloomberg markets china open.