♪ haidi: you are watching daybreak asia live your knee in hong kong.

annabelle: counting down to asia's major market opens. haidi: asian equities set to open lower after wall street's biggest line in six months as the reality of higher for longer sticks in. the global. australia hitting a deadline to respond to the regulators into end strikes at chevron export facilities. breaking news crossing the bloomberg when it comes to the australian judo bank pmi numbers. what we had seen was relatively sanguine data from australia despite the hikes. we are seeing the pmi composite number preliminary reading coming in at 50.2. that is actually a jump from 58 for getting out of contractionary territory. a slight deterioration from

49.6. something further into contraction. the services component of that seeing an improvement at 58.5. quite significantly pulling back. fairly steep in contractionary territory and now just expanding. shery: look at u.s. futures. early in the asian session after the s&p 500 saw its first date march. s&p and nasdaq 500 now on track for their worst quarter in about a year. we continue to see this ongoing bond rout leading to the recalibration of the stock market. especially when it comes to profitless tech taking a hit, given rising lee yields we had a mixed treasury markets with yields climbing. the 10 year at the highest level since 2007. very close to 4.5%. not surprising given we have more data showing the resilience of the data market. u.s. jobless claims falling to

the lowest level since january. rod risk off sentiment across markets today and we had pressure on wti prices. a little bit of a rebound in asia, but not a lot despite the fact we had russia banning exports of gasoline and diesel which puts supply at more risk. annabelle: certainly a lot of events on the horizon. a lot to be digesting. chief among them is the boj decision. ahead of that, we are keeping a close watch on the japanese yen. you can see it struggling for direction in the early hours of trade this morning, but very close to 150. we typically start to watch signals of intervention, whether that is job owning or something concrete. we have the boj decision. something else policymakers will have to passover is the inflation before they make their decisions. take a look at what we are

expecting for the august reading. essentially a couple of different things, the core reading expected to come at 3%. that would be a trend downward for a second straight month. something that lends to the boj narrative that inflation will peak and soften into 2024. what else will be in focus is the core core reading, which is expected to hover above 4% yet again. it shows us the price pressures are a little stronger and long-lasting than first thought. clearly something policymakers will be watching quite closely. the boj decision in a couple of hours. shery: let's get a preview of that with our global economics correspondent and current nso. we are really not expecting any change in terms of policy, so what should we be watching for? >> no policy change expected, but keep an eye out for

messaging from when he might think it is appropriate to move from negative interest rates to positive. he gave that newspaper interview recently that excited markets where he seemed to suggest perhaps there is a possibility they could pull out of negative or -- negative territory if inflation is heading in the right direction. boj have talked that back since then, but his language will be critical. japan is the last central bank to have negative rates. keep an eye on the yuan, it is at a 10 -- a 10 month low against the dollar. officials have been warning they could intervene in the market if need be. a year ago they stepped into buy currency for the first time in 24 years. it is a pretty tricky message for the governor because no matter what he wants coming out of this, he will not want to trigger more market volatility. that is against his policy aims at the moment.

it is all about the press conference and how he navigates. >> really interesting, does that mean we are now seeing recession as a top concern over inflation? >> it could be. growth seems to be top concern in london. split decision, 5-4 not to raise rates. mostly the executive staff going against the external members. the governor did give obligatory warning that inflation is not yet under control and they could act again if they need to. but the narrative coming from the bank of england seems to be about the economy, the growth downturn, citing industrial data and there are broader indications u.k. economy is heading into downturn. this is the interesting part of the cycle where it is going to get more positive -- more difficult for central banks to determine if they should hike rakes -- hike rates or stop hiking in order to -- recession.

the greater damages that inflation becomes entrenched. it is a very tricky period. shery: also a hold for some central banks in developing asia as well. >> philippines on hold, it again warning they could hike again if needed. indonesia on hold. the governor making the point that if you're looking at indonesia is the mastic, they could probably cut interest rates but they can't because of the dollar against their own currency. that's an example of how the fed impacts emerging economy banks around the world. the fed this week say not only could they hike again if they need to come at the least, interest rates will stay very high in the u.s. near term. that is a problem because it keeps the dollar strong. of course if those central banks were to bring down their own policy rate, they can't because the fed remains hawkish. those were a great example of that.

shery: enda curran there. we will be speaking later onto the philippine central bank governor, we will be getting his thoughts on the path ahead for bsp after the fourth straight call. that is coming up. our next guest says cycles in this market have been very short and it is easy to get caught up in the momentum trade. freda yonkers is an investment specialist. she joins us here in studio. you talk about momentum trades, just take a look at the leadership of ai and chipmakers, right? how do you separate momentum, specific to ai. with your style, what do you actually want to see from the companies you think are worth investing in now that the easy money is being made? >> we are specifically -- so we don't necessarily just buy a company that is either a growth

stock or a value stock. we look at each company bottom up and we want to see companies that can be in an earnings upgrade cycle and actually surprise expectations. with ai, i think it is -- to make sure those companies will give you the actual earnings that have already been priced into those high multiples. haidi: obviously you don't trade around macro trends, but there are macro emily -- macro elements. for ari for example. i thought your picks across energy given the rally in oil prices has been interesting. >> for us, it what is important is we have a diversified portfolio across multiple sectors and multiple geographies. in an environment we are currently in, the way you have very few short cycles, it is important to ensure that you stay on top of what is happening from a macro perspective. you can't get away from it, it is important and it does impact

the way stocks trade at the moment. we do like a variety of different stocks at the moment. something like a for ari, which is still a high growth stock and clearly one of the luxury names on the market but we also like conocophillips. that has been fitting. shery: how much are you looking at emerging markets? we are now seeing their stocks erasing this year's gains, as this chart shows. we are now headed for another year of underperformance against u.s. equities. >> has been a tough time. i don't think it is really a result of uncertainty that is happening globally from a macro perspective. as soon as our concerns around growth, those markets always selloff first. for us, it is still quite an interesting space.

we are not massively expose, we have exposer's largely on the large multinationals also selling to those regions. but currently we are looking at countries like mexico and brazil and those markets have really not done very well. you can find good growth opportunities in those markets, but it really is a situation where you need to be very selective and ensure they are connected to those global trends we are still seeing play out across key developed markets. haidi: brazil and mexico are heavily dependent on commodities. do you factor in the commodities exposure as well given rising prices? >> at the moment, it really is a tough time for commodities. direct commodity exposure for us is quite limited but we look across different sectors that won't necessarily be impacted by actual commodity prices. for us, it is finding those

companies in emerging markets that can still benefit not just from their own growth but from international growth. it is really those more diversified companies i think that sort of our indicative of strong trends. you need to be selective. that remains the critical point. annabelle: you talk about the sectors that were part of the covid reopening trend, either from the health care perspective or from travel and hospitality. is there more to go on that theme? >> at the moment, we have sort of -- everyone thinks to normalization post-covid has already happened. you look at supply chains and all of that, but what we are seeing from traveling a lot of late, we have literally been across the globe, there's a lot of underlying traits that are still playing out. there are some industries that have been fitted post-covid.

something like the travel industry. and then there's some sectors, some areas within pharma that have benefited a lot. what we are seeing now is still some of those playing out. it is not done yet. one area we have picked up of late has been the demand for alcohol. it has been interesting there has been a complete collapse and that is really part of the normalization of covid still happening. it's interesting that is not just at the lower end of the market, it is all the way up. a company like -- talking around real pressure, particularly within china. that part of the market is seeing a big collapse in demand. it is important to a knowledge that we are still dealing with covid and you need to be -- for -- to play out. >> always great to have you with us.

still ahead, world leaders pledging to fight climate change but divisions remain. we will be speaking with the columbia university center on global policy on what action must be taken now. first from of the deadline passes for australian lng unions on strike at chevron plants. this is bloomberg. ♪

♪ haidi: australian you hitting a deadline to respond to the plan to end strikes at chevron export facilities. amy bainbridge is in melbourne. as we await details from our an announcement, how did we get to this point? >> as you know, we have had some

rolling stoppages over the past few weeks. there has been this entrenched bull bargaining dispute that was launched that the commission that has been the subject of hearings all week. the -- commission inferred that -- has made a series of recommendations primarily around some of the allowances these 500 or so workers are entitled to. they are working in remote parts of western australia. a lot of that is around travel and over time, what happens when they finish their shifts and try to get home. the -- commission made those recommendations. chevron agreed to them. the union, the offshore alliance which represents a number of key workers humans was holding meetings late into the night last night. it was a 9:00 a.m. local time deadline here on the east coast and we are waiting. we expect to hear from the union momentarily on with the decision has been.

we have been unable to reach an agreement, then they go back to hearings in less than an hour. it is really now in the hands of the union as to what they decide, given chevron has already agreed to a series of recommendations made by the commission. haidi: what have been the key sticking points? >> there have been a number. you've got to remember that these worksites -- of the state. they include what we call fly in, fly out workers. people stay away from home for long periods of time. one of the key problems that have been raised through this process -- shery: we are just getting confirmation now, the unions have agreed on that deal to end the strikes at chevron's lng sites. we know that deadline was 9:00 a.m., it appears they have reached a deal. what did they agree to?

where do we go from here? >> what it looks like is that those strikes will stop, that has been causing major disruptions to operations. number two, the main sticking points have been around the overtime provisions, the allowances for people working remotely. one of the key things i did find during this process is that when people refinishing their students, their warplanes flying out of those areas that sometimes would be delayed and people would miss connecting flights to get home which caused disruptions to personal lives. one of the key provisions the commission came up with is that if those plane delays were the fault of chevron, chevron should be paying additional penalties. it seems that key point has at this point been resolved. there were other concerns around overtime as well and the training for people get to move

through the ranks rather than staying on particular point bets. it appears that has been resolved. we are only just getting this now, but an agreement has been reached. we really have been waiting to see whether the union was going to push back on any of those recommendations from the commission which has been the subject of -- haidi: amy brain bridge with more news on the agreement between chevron and unions. let's stay with more labor action because we are seeing the united auto workers threatened to expand its strikes against general motors and ford on friday unless progress is made by noon eastern on contract renegotiations. parts of -- have reported earnings saying the impact of the strikes on sales should be relatively modest unless they continue for several weeks.

broadcom fell after a report that alphabet's googled is considering dropping it as an ai chip supplier. the information reports that executives have set that goal earlier this year due to a standoff over chip prices. the report suggests google could fully design chips in house if the plan pushes through. a spokesperson says the company sees no change in its relationship with broadcom. one of the most influential and controversial figures in media, rupert or doc, stepping down from his global empire at the age of 92. murdoch's eldest son will take over, adding to his rules as executive chair and ceo of fox. su keenan joins us with more. really an end of an era that spanned seven decades. su: 70 years ago, murdoch started his empire with a local

newspaper in australia that expanded to include tv and other properties across australia, the u.s., u.k. the wall street journal, one of the more prestigious publications. an american analyst says murdoch was one of a kind. as a leader, fascinating and turbulent in his career. now he hands it over to his oldest son. shares moving higher on the news. wall street have been aware for some time now that his position had been the heir apparent, but this solidifies his role at the top of the company. he issued a statement congratulating his father on behalf of the board and other shareholders, saying that his father had served for seven decades as a media tighten. the elder murdoch said the time was right to take on different roles and that the battle for freedom of speech has never been

more intense. he will continue to be involved in a day-to-day basis as board chairman emeritus. weighing in on different issues of the day. it is clear now that lachlan murdoch is running the company and will be taking it forward from here it haidi: this is a pretty clear path for succession but it looks like the transition could get on paper. su: further down the road, it looks like that after murdoch has passed, there could indeed be some contention because all four adult children would then have to agree on what the ownership and leadership would be based on paperwork that murdoch himself had put forward. right now the biggest challenges appear to be the challenges that are facing the industry. the decline in newspapers, the challenges posed by high-tech and ai.

there is also the legal issues. fox network paid dearly for embracing, under murdoch, the trump saga, the narrative that he had been the victim of a conspiracy that robbed him of the election. this resulted in lawsuits for fox. it lost 700 state -- 787 million dollars to dominion voting systems. there still another lawsuit from smart magic. a lot of challenges for the media group going forward, but a definite surprise in that up until now, no one had expected the 92-year-old to step down. he certainly showed no intention of stepping aside or even slowing down. haidi: you can get a roundup of the stories you need to know to get your day going in daybreak.

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♪ haidi: looking like a dismal day as we set up in this part of the world. the event risk is not over. we have the bank of japan decision coming up. it will be interesting for japanese markets given governor ueda needs to strike this balancing act of no change to interest rates, but also guidance that could help support the yen, given the erosion of household earnings and spending capacity we are seeing. futures in australia looking dismal. wall street saw its worst in six months.

s&p 500 losing 1.6% in the worst day since march. this kind of reality check in terms of higher rates, the fed staying there for longer, perhaps starting to sink in a little bit with high growth stocks typically taking the brunt, as we saw in big tech. this is the picture as we look towards the bank of japan. what kind of messaging do we expect to see from ueda given the outsized market reaction? we are also hearing from ¡se fue la luz! pero todavía tenemos wifi para hacer las tareas. ¿y eso es algo bueno? wifi y estudiar. buenísimo. wifi y pedir una pizza online sería buenísimo. presentamos storm ready wifi. solo de xfinity. ahora puedes mantener una conexión confiable durante apagones, con datos celulares ilimitados y batería de respaldo de hasta 4 horas para mantenerte conectado.

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>> we are getting consumer price inflation numbers for the core cpi, excluding fresh food. a gain of 3.1% for the month of

august, which is coming above economist expectations. actually, the same level of acceleration then in the previous month. the expectation was for a little bit of a slowdown, given the higher base effect. but perhaps the higher crude oil cost and recreational services being reflected in the headline number as well as the national cpi year on year oath is an acceleration of 3.2% against an expectation of 3%. excluding not only fresh food, but energy prices, you have an acceleration of 4.3%, which is in line with expectations. we are not seeing much of a change when it comes to the japanese yen, but just the fact that inflation did beat estimates especially when it comes to the core number, might be something the boj will be watching. it is expected to make a policy

decision. the expectation is for a hold, no change in policy today. japan editor paul jackson joins us now. where we necessarily expecting a change from the boj? this price acceleration must support policy -- set more positively. >> sure. one month's inflation results don't change the story dramatically. but, this does fit in with these prices continuing to remain hotter than expected. hotter than forecast by the boj. boj says it is going to average 2.5% this year. we are still in the threes here. this suggests we are seeing signs that inflation is sticking around and that's what the boj needs if it is going to move along with wage growth.

is that going to happen today? economists we spoke with all said no. nothing today from the decision. does that mean there is no excitement? not so quick. we are going to see how markets react to that reminder that boj is keeping on the stimulus path for now. of course, the main focus is going to be on the yen. the yen did get a little bit of strength last night helped by dollar weakness. that has given it a bit of a buffer. but, any comments from ueda at his press conference about the currency will be closely watched. the first thing to look at is how the market reacts, given there are no surprises. >> willingness to take action.

look at the technicals. dixie close to breaking the high. is there risk still of higher dollar and really more potential for interventional risk for the yen? >> it is a well-worn phrase, but we are not out of the woods yet. stuff could still go in any direction. what we are interested here is to see the reminder that the boj is staying on its ultra stimulus path for now. remember, these policymakers always say it is not the levels, it's the movement. in past interventions from the government we have seen movement of about two yen. in a period of less than 24

hours. that is the kind of movement we need to see before we think about intervention risk. but, interfering -- intervening is still going to look awkward if they go before your 12. we've got much less risk of intervention this year, but let's remember it was on this day exactly a year ago after a fed meeting the boj started -- when japan had to intervene. haidi: paul jackson with a preview of the boj and his reaction to the latest numbers. you can also turn to your bloomberg for more. tliv to get commentary and analysis. they will be of course we have seen broad pressure on u.s. stock markets, especially with ongoing bond rally. however be setting up for the

asian session? annabelle: the worst day for the u.s. stock market in six weeks is going to lead to asia stocks as well getting lower. half an hour out for the open for sydney, seoul and tokyo. the nikkei contracts, already a drop of 1.3 percent. there's not many causes for optimism in the markets today because it really is down to the bond space. investors still digesting messaging from the fed around higher for longer. that it's the narrative and play. kiwi stocks as well online. s&p 500 futures looking fairly flat. let's take a look at what is happening in terms of the bond spaces because we are continuing to see moves. we saw the 10 year inching higher overnight. at the front end, the kiwi, the aussie three year likewise keeping a watch on what happens with the japanese bond space given the focus very much in the

session today on the boj. haidi: coming up, columbia university on global energy policy on why climate policies were pledged at the u.n. general assembly. this is bloomberg. ♪

♪

>> we are pursuing that all those pledges should be murdered. if i have to give a figure, probably 1/10. there's a lot that needs to be done. we are trying to conceive projects related, which would be mitigation of the climate disaster. shery: pakistan on having only received a fraction of the $10 billion commitment from the global community after last year's devastating floods. pakistan is among the country's vulnerable to el niño. world leaders still at the united nations general assembly in new york this week calling for more collaboration over climate change. divisions remain. melissa lot, columbia university center on global energy policy. she is here with me in new york.

where are the deepest fractures right now? >> the themes of the general assembly and climate week have been around urgency. there are big gaps across all three. there are tensions about how we actually address the urgency of climate change and how we move money to the countries who need it. shery: this division between rich countries and developing nations, how can it be overcome when the financing seems to be the issue? >> when we look at finance and we look at the real and perceived risks of moving large amounts of money to support sustainable development, we need to address risks. some of them are very real like currency exchange, some of them are perceptions about how confident can you be you're going to make the money back. shery: what are the next steps? >> continue the conversations. come up with real, practical solutions.

when we look at the urgency and collaboration, in the middle of all the tensions we are dealing with, what plans can work? where can we de-risk together as multiple regions? how does that translate to action to get emissions down while adapting to the climate change. shery: what are the lowest hanging fruits? >> how do we move our power sectors, how we generate electricity, how we address sustainable development goals. hitting everyone hooked up and actually supporting development while still making sure we are mitigating and getting emissions down. shery: how is el niño going to make things difficult? >> it is bringing attention to what we already know. climate change is real. it is not just in the future, it is happening today. when we look at the urgency around communities, which has really come out, how our community is responding. when you are in the middle of a

flood, drought, record-setting wildfire, you have to respond today to make sure communities stay safe. i'm thinking about the local impacts of climate change. in your town come in your region, not just urination, on your block, you're seeing people struggle to afford energy bills commit to use air conditioning if they have access, these are all things affecting people and communities you care about. communities, cities are taking a lot of action. shery: we were listening to the prime minister of pakistan talk about how he only got 1/10 of the $10 million commitment. in order to continue recovery efforts from last year's debit -- devastating floods but he didn't necessarily say it was all because of the donors not bringing the money. it was also having to deal with pakistan needing to really have projects that can be financed and funded.

how important is that side of the equation coming from developed nations? >> having identified opportunities to not build small one-off projects are good, but to build a level of infrastructure we are talking about, those things are critical. whatever we can do to transfer skills or lessons learned, we have learned to build infrastructure outlets, transfer that information to other regions. shery: given what you have seen so far with un's general assembly, how hopeful are you we will get a breakthrough at cop 28? >> we will address big challenges. big elephants. finance. how do we move huge amounts of capital? we are entering a place where having practical discussions on how to accelerate action. we have moved well beyond what should we?" to, how shery: how

much enthusiasm is there from the private sector? >> the private sector is looking to know where we can invest and move capital land know that we are going to have security in terms of returns. here are projects we know are going to be good for our business and good for the world as we mitigate. they are enthusiastic and want to be part of the conversation. haidi: when you look at the narrative, which is that there's still a lot of talking and not a lot of commit and's, and the scale that is needed is just not there, are you optimistic that we are going to get there in time? >> there's a couple of different pieces to this. we have not fully leaned into the scope and scale of what is needed to get us to ned zero. we are just at the point of discovering the initial steps. until we absorb what that is going to look like and move toward ned zero, we are not going to be moving quickly enough. but when it comes to ned zero,

the faster we move, the healthier our communities will be on the more damage we can mitigate. i am hopeful and optimistic because i have seen more progress in the last decade i might have expected 20 years ago. shery: ending a little bit optimistic. melissa lot, columbia. coming up, south korea seeking to revive a three nation summit with japan and china. we get the latest. this is bloomberg. ♪

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haidi: three weeks ahead of the referendum, the yes campaign is on track for the pete. paul allen joins us for more. how has the debate and the information available changing? >> the yes vote in july had a handy majority but now it is trailing nationally and in most states as well. the no vote has 51 percent support. the note, -- in order to pass, it needs a double majority, not just the national vote, but the majority of states as well. we have seen enrollments jumping among youth.

debate has turned. initially it was tied up and how it would be structured. the legalities and how it works. according to the australian electoral commission, the debates have become more vitriolic. there's a lot more misinformation online. australian indigenous leaders are saying they are facing racism. support lines been reporting a day lose of calls. haidi: why is the -- losing support? >> it's an interesting question because you would think it would be a slamdunk. who doesn't support better outcomes for indigenous australians? like most countries around the world, colonization was not a particularly pleasant experience. the history is pretty ugly to say the least. essentially the has got an easier job. all it needs to do is cast doubt

, fear, promote the known quantity of the status quo and it has been pointing to the lack of detail over how the body is actually going to function. the yes campaign has been struggling to hit a clear message. it has multiple spokespeople and those spokespeople haven't always been consistent. in australia, changing the constitution is really hard. there have been 44 referendums since 1941 and only eight have been successful. the last in 1999 you would have also thought to be a slamdunk in that was removing the british monarch. but we saw the no campaign successful there as well using the same tactics. casting doubt, saying the status quo is safe. we are seeing history repeat here. haidi: let's now turn to president biden has vowed continued support for ukraine as he met with bilotta murray zelenskyy at the white house.

a source who has spoken privately to zelenskyy says he is worried the u.s. commitment to support is waiting as troops struggle to make battlefield advances. existing aid could run dry but it end of the month on the back of a u.s. federal shutdown. canada will reduce the number of diplomats it has in india. new delhi looks to have suspended visas for canadians. the latest in tit-for-tat moves as a diplomatic scrap worsens. earlier this week, justin trudeau had accused the indian government of murdering a activist in the country. the indian government approved a bill to reserve one third of its parliamentary seats for women. the measure passed with widespread support, but a clause in the bill means it can only be enforced after india conducts a fresh senses, which could be sometime in 2026.

currently only 15% of lawmakers are women. the biden administration is reportedly weighing treaties with saudi arabia and israel. sources tell bloomberg move could pave the way for a normalization of relations between riyadh and jerusalem. earlier this week, and now who told biden he was confident of an historic piece between his country and saudi arabia. south korea pot ambassador to japan says high-level talks are underway to set up a three nation summit with china later this year. for more, let's bring in -- how are the preparations going? >> the ambassador says the summit among tokyo and seoul is going smoothly. you usually you start with talks and it goes up to the senior level before the leader summit,

which we think will be happening sometime at the end of this year. looking at past instances in 2019, it was also near christmas and the ambassador tells us so. the senior officials meeting will take place on the 26th and they will be probably discussing the agenda. various topics among the three countries. this is significant in the ambassador says a lot of the camp david effect has played into this. looking back in august, this was a landmark summit at the presidential root street in maryland where they were invited to discuss a lot of the shared security cooperation they have never really discussed. it resulted in some of the significant outcome such as sharing of the missile provocations in real time.

annabelle: have we seen an improvement in relations between seoul and tokyo? >> the ambassador has shared some of his personal stories. when he was of ashwin -- when he was first appointed last year after the administration changed in south korea, he said the related and was so south korea he felt was impossible to be cold. he says the situation has changed entirely. he sees one third of the people, the tourists walking around japan are all south korean. there are now not enough seats to book flights towards tokyo. he says a lot of korean companies have resumed investing in japan. that is not just small or medium-sized companies, but includes giants like samsung which is looking to set up an r

and d center in tokyo. haidi: how is this stronger trilateral relationship between the u.s., japan and korea affecting seoul and beijing? >> the ambassador said the relationship between tokyo and seoul has become so good that it is unprecedented. to the point that japan has not seen this kind of relationship and close to 10 years. so, china relations, when we talk about china and south korea, we also look at the chip making tools that japan is exporting to china. so is south korea. a lot of the plants they make the memory chips by the likes of sk hynix. it is a country that south korea cannot abandon. but, he also said that china

will very quickly ramp up their production and at a certain point move the value chain and get there, which will actually be something to think of. shery: look at stocks we are watching and korea commit japan and australia. japan, toshiba is reportedly considering reintegrating its four main subsidiaries after confirming the buyout will take company private after 74 years. the indian power generator js w reportedly in talks with lg energy to make ev batteries in india. we will be watching for news from sydney. rupert murdoch stepping down as chairman. lachlan murdoch taking over.

shery: not a lot of movement, but after stocks already sank the most in six months. the worst day since march for the s&p 500 and nasdaq now on track for the worst quarter in a year. we continue to see treasury yields rise, pressuring stock markets. right now, we are very much focused on japan. we did get the cpi numbers, the core consumer price to the upside just hours ahead of the boj policy decision where not much is expected, but we are watching comments around a weak japanese yen. the market open is next.

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♪ >> we are counting down to the major market open.

the worst day for u.s. stocks in six months. this as we got more resilient data in the labor market. after already hawkish messaging from the fed. we are now watching the bank of japan. >> really that strength we have seen in the u.s. dollar, we continue to see the strength in the u.s. data. all of that will play into yen weakness. that will be top of mind for the governor today. >> certainly this will be a very closely watched press conference. given that investors are still a little bit flummoxed about what he meant in that interview with local media. let's look at the opens. japan, korea, and australia coming online. the boj definitely in focus.

any comments around a possible exit from negative rates. the correlation between currencies and policies. we have the japanese yen still holding around a 10 month low compared to the greenback. markets have even faster action. one other data point that could play into this, one of many they will be watching, we did see inflation figures coming out in the last hour. the core cpi say the same level. 3.1%. a little bit hotter than what was expected. that certainly throws some cold water over this expectation from the boj that inflation will be peaking later this year. and then fall back to the 2% target in the following year. that is the state of play as

japan comes online. let's change over and take a look at how korea is starting to trade. the focus really playing out in the currency space. it has been that hawkish message from the fed. higher treasury yields. that has been something that is putting a little bit of downward usher on the korean yuan. the kospi likewise coming online. we saw big tech under pressure in the prior session on wall street. doosan robotics will be the biggest ipo in korea over the course of the year. the focus will be on the retail subscription that has been taken for this ipo. it is expected to be worth $320

million. we have already seen the retail focus of it. in australia, we are looking at more of a commodities focus. not necessarily market moving for equities. this has been playing into lng prices. chevron and labor unions reached a agreement to end strikes at key facilities. taking a look at brent crude, a little bit of the wind taken out of the advance in brent crude given the risk off mood that is coming across markets. >> our next guest says the boj will probably start to raise rates in 2024 depending on whether the global economy can stay buoyant amid elevated borrowing costs. great to have you back.

how much do you expect the weakness of the japanese yen to weigh on the governor's mind? >> i think it is a very important contributor to inflation. you think back when the japanese weaken significantly. all of this has led to imported inflation in japan. if the yen continues to stay week, that will be a headwind from that perspective. i think the important point to note is when you look at some of the recent data. just like this morning. the month on month numbers are starting to stabilize. the boj might want to wait and see, especially for the rate of negotiation next spring. and whether that is a significant surgeon wages. the question is is 2023 and

exceptional year in terms of inflation momentum? or will it be a one-off. i think that is still very much the debate at this point. >> given the resilience of the u.s. data, we continue to see this stark contrast. how much higher are we expecting u.s. treasury yields to get to? >> i think there will be some knee-jerk reaction. after the meeting earlier this week. a differential between the u.s. and japan in the short-term. hopefully the fed will be more clear. so that could happen in the

november meeting. you could start to see the to converge. moon >> do you position for that? given the tweaks to the outlook that we had this week? >> i think in the very near term i still expect that. you started to see job numbers in the u.s. that are still good.

core inflation is coming down. from that perspective, i think we could face more headwinds. >> what do you do about china at this point? >> the macro data continues to be on the weak side. there are companies we think can deliver strong -- strong growth over the long term.

they are starting to clarify. the earnings outlook should be more encouraging. we expect a new economy to take over in 2024. >> we continue to see that. anything appealing to you? >> at this very moment with the downside from the u.s. overnight, they will have a pretty tough in the to the week. when you look back to some of the growth momentum, you mentioned india.

the tourism specters coming back quite strongly. it is less about the individual markets but rather those sectors in the economies before the end of this year. >> always thank you for being with us. let's get a look at some of the movers. >> fairly broad-based losses as we get trading underway here. every single sector is in the red so far. i.t. is among the laggards. we did see the likes of nvidia and amazon leading that round. tech is sensitive to a higher yields environment. let's take a look at one stock

in particular we are focusing on today. that is softbank. concerns around messaging from the fed. it was a very highly anticipated debut. it was sold at $51 a share. that takes a little bit of excitement out of all this expectation we have for further ipo's to come. another name we will be keeping on during the session. >> we will speak with a former burke -- board member. he thinks it might be time for japan to prepare for a new interest rate environment. rupert murdoch says the timing is right for him to move on.

that is coming up. 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.

♪ >> the pakistani government is facing a series of challenges as it pushes through reforms as art of its imf bailout program. while battling soaring inflation. i sat down with the caretaker prime minister and started by asking the expects more social unrest over rising power prices. >> my own anticipation is that we are approaching the months in the winter, our electricity

bills will increase -- decrease significant a. you do not require air conditioning of your homes. the winter months are usually good news. i am not anticipating that type of huge social unrest. >> the imf request for privatization, was that an immediate demand? why do that now. what is actually on the table for sale? >> our own approach toward state entities is that we have realized across the board with the different political parties that the state has no business to do business. that approach is currently

guiding everyone across the board in pakistan. in that context, we are trying initially to privatize our transmission bars. alone with the generating units. this would help us want to get more investment and infrastructure. there is a huge loss. people do not pay. there are administrative issues related to that. we expect they will be able to provide better services. >> the you expect some sales in the next few months?

>> i don't want to commit to something that would haunt me later on. >> china is your biggest lender. what conversations are you having on debt relief? >> we are having very positive and constructive engagement with china. in economic terms. specifically toward pakistan. where would it come from? we are having a very broad-based conversation. >> you mentioned 50 million dollars of investments from saudi arabia and uae. how often -- soon could we see those funds? >> there is a serious initiative

on the part of these countries led by saudi arabia and uae and the rest. they want to invest in multiple sectors in pakistan. that was just one figure that i mentioned. it does not have a kind of limit. they are coming up with an open mind. as they see more business opportunities. more to offer from our side. >> the caretaker prime minister of pakistan. you can get a roundup of all the stories that you need to know to get your day going in today's edition of daybreak. also available on mobile and the

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start today at godaddy.com >> one of the most influential and controversial figures in media, rupert murdoch, is stepping down from the helm of his global empire. his son will take over at news corp.. we have the latest. what is next? >> it is a new era indeed for fox and news corp..

the stepping down of rupert murdoch was completely unexpected. he gave no signs he was willing to tap away. his oldest son is now taking the reins. he started this huge umpire -- empire from a local newspaper in australia. it was widely known that the rains were being passed to his son. this announcement today makes it official. stocks rallied on the news. his son put out a statement congratulating his father for seven decades as a media tighten.

he said that was his father's fight. he is passing it on. >> this is pretty smooth. but it could get bumpy down the road. >> it is undisputed that he is the choice to run the company. but rupert murdoch to create paperwork that upon his death will lit all four of his adult

children decide who should lead the company forward. the darkest chapter under his leadership was the scandal involving putting forward that there have been a stolen election. there is still a pending lawsuit. a lot of properties facing big challenges from streaming networks. it will all fall into his lap. many analysts say he is equipped to do that. >> let's check on some of the top corporate stories we are

following. they will pay in cash. they are trying to lessen their dependence on one-time sales by shifting into software and services. microsoft is rolling out its ai system for windows on september 26. the ceo said it will provide a unified experience across operating systems. microsoft is leveraging this course. he says he is skeptical about a soft landing in the u.s. as the effects of title i policies take effect. he also explained how they are

navigating the effective higher rates. >> that has taken a lot longer. you have the high-yield market. the real impact of fire costs around the globe has not been felt yet. when people say we are going to have a soft landing, i am skeptical. i see a world in which financial conditions have gotten tighter. >> there are a couple of different ways for us to get to something other than a soft landing. there is something where it is just proper. rates will remain high for a very long time. it seems like the market is

leaning into the latter. how much does it change your perception? >> this conversation is going into one where we are talking about growth is more challenged. certainly you have challenges in germany and the u.k. with a slowing growth. it is going a more challenging direction. defaults are going out. recoveries are lower. there are a lot of points that will say to you that it will be more challenging.

we are going from a decade of real imbalance. debt paid a crazy price. that balance has been completely changed. how do companies now navigate? how do they all balance and navigate this marketplace ahead of us? i think when people talk about these central banks lowering rates, i think it will happen well before they get around to it. just like it happened on the upside. there is no doubt that one of the challenges of the last 15 years of the regulatory environment has been so much capital withdrawn from these marketplaces in terms of trading capital.

that has a greater impact. any type of second activity will have an impact. >> coming up, the trade chief of the eu will face tough questions in china. a preview, next. this is bloomberg. ♪ ¡se fue la luz! pero todavía tenemos wifi para hacer las tareas. ¿y eso es algo bueno? wifi y estudiar. buenísimo. wifi y pedir una pizza online sería buenísimo. presentamos storm ready wifi. solo de xfinity. ahora puedes mantener una conexión confiable durante apagones, con datos celulares ilimitados y batería de respaldo de hasta 4 horas para mantenerte conectado.

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♪ >> we have further softening of numbers out of japan. this is a preliminary number

coming in. the manufacturing pmi also in contraction territory. a softening from the previous month. he did get the august numbers out of japan. all of this being considered by the boj. we are cut -- expecting a decision in the next few hours. the inquiry into chinese ev subsidies is expected to be the main focus of these talks. overall what are they looking to accomplish?

>> this is a forum that takes place regularly. this time around in the background is this investigation that the eu announced just more than a week ago. it touches the $7 billion of electric vehicles that are sold to the eu. the eu said they were going to investigate. china hardened its tone and said this was a naked active texan is him -- naked act of protectionism. he has a little bit of a job of diplomacy.

all of the important issues that they discuss between them. source have told bloomberg that this message would go better if they cooperated. you could be forced to look at public information. i'm not sure that is quite the message that china wants to hear. >> this will obviously be front and center. what else will be on the agenda? >> there are several soft diplomacy types of events.

they will talk about things like supply chains. securing medical devices for china. market access. the trade relations between them. it is the same as this stained relationship between the u.s. and china at the moment. these efforts to stay friendly. >> let's get you back to markets. >> the focus for us here in asia will be on the bank of japan.

demonstrating that every single sector is in the red here. losses are being felt across all sectors. when you look at the emerging markets, we saw the gauge giving up all of its gains against. we were saying perhaps this would be the year emerging markets would develop. what impacting this is the impact of the fed. high energy prices. we have seen better earnings

projections coming through. what is driving that is a different theme. that could start to mark better days as. >> the prime minister of malaysia says competing claims over the south china sea should be resolved. >> that is key to what we believe in. i think our position in the region is to ensure we have excellent terms with our

neighbors. as far as the south china sea is concerned, our position is it should be resolved. within the region. the response is quite reassuring. they may contact with us and other countries. we will continue to negotiate. seek a resolution to this problem.

>> can countries in that region remain in control when it is happening? >> there are possibilities of a flash for decades. i take a more optimistic view of the future. we have to advise parties not to unnecessarily provoke. this is similarly our position. >> you are looking at companies

like tesla, microsoft, alphabet. are you leaning more toward the u.s. because of the slowdown in china? >> they are moving very aggressively. america used to be a traditional ally. overall, it is still the largest investment in this country. but in the last two years, china has surpassed that. >> it is not only malaysia that is targeting these companies. you are looking at collaboration from the likes of tesla. should there be a more coordinated approach for

countries in the region so they do not cannibalize each other? maybe build an ecosystem within the region? >> this has been happening for decades. operating in malaysia and other countries. it is bigger in thailand. a smaller facility in malaysia. we should take a more objective view. i agree. in our deliberations, other than talking about general policy we should talk about the possibility of having specific companies and what is the way we

can focus. >> the prime minister of malaysia speaking to us in new york. coming up next, for boj member will be joining us as we count down to the latest rate decision. this is bloomberg. ♪

♪ >> we want to encourage sophisticated asset management. we have elite business practices. there are no barriers to entry. >> the prime minister in new york. our next guest is a former board member of the bank of japan. she says this is a policy conundrum. she is a professor of economics. she joins us now.

always great to have you with us. what are you expecting in terms of what he can potentially say in that press conference today? >> i think there is no policy change expected at this time. zero point 5% yield is no longer binding. they can go above 0.7%. they are putting more emphasis on containing it. the variations. >> winning we realistically going to have sufficient evidence on wage growth?

we have heard some people say that the market reaction to the governor's interview was widely off the mark. >> they said if the positive data is available, they can probably abandon the interest rate. it is difficult to say because it is purely based on that. 70% of inflation comes from food. more of it comes from eating out. restaurants. another 8% comes from inbound tourists coming to japan. hotel fees are going out. otherwise, we don't really see any inflation. demand is really week.

corporate spending is very weak. domestic demand is really week. i don't really know how he can say the positive data coming from the demand side. it picked up this year thanks to that. if we look at wages, including small and medium enterprises, the average is just 2%. it is not really benefiting the japanese consumer at all at this stage. >> how much more does it hurt that you have so much weakness in the japanese yen when it comes to local consumption? >> it is affecting japanese consumers.

it is very weak. the consumer is actually suffering. it is hurting japanese consumers. it is still in deficit. it is not really contributing to the resource increase. i think this is too much. it may be already hurting the japanese economy. >> going back to that point of actually getting rid of the 0.5% reference level, what would that mean for the japanese yen and also for consumption and

inflation? >> at the end of july, the bank of japan made this tweet. it could go up to 1%. there were a lot of different interpretations. immediately after the announcement in japan, it had more depreciation. it gave a signal to the participants to increase interest rates. sometimes you see this wider difference.

that is why the boj started to try to not talk too much about maintaining 2%. it is important. they put more emphasis on how to cope with that. >> whether it is this year or next, what are the global implications of the boj actually moving? >> boj is having a dilemma. they may want to raise the 10 year yield. but at the same time, it will affect negatively to achieving 2% in a positive manner. they are facing that dilemma.

because of this dilemma, they may do some tweak. but in a very cautious way. >> always great to have you with us. you can actually turn to your bloomberg for more. get commentary and analysis. this is bloomberg. ♪

♪ >> chevron and labor unions have reached a deal to end strikes at key facilities in australia. let's get more from our energy reporter. we were waiting for workers to agree to this settlement. what does it entail? >> the workers did agree. to this commitment that would essentially allow union workers at these plants higher pay and better terms. some of them include compensation for flights off of these offshore platforms. they get higher pay and compensation.

and employment security. they have been negotiating with chevron for months. they were not able to come to an agreement. so they had to start a strike earlier this month. the strikes escalated last year to a full day. they were working for 24 hours a day. that raised a potential disruption at these facilities. the government in australia, the regulator, came in and proposed a deal earlier this week that both chevron and the unions agreed to. now the strikes will in sometime over the weekend. they will work out a finalized deal and then finally withdraw their strike action. >> a sigh of relief. what do we know about the supply

and demand situation at the moment? >> the global liquefied natural gas market is financially balanced, according to the people i spoke to. last year, the war in ukraine cut a lot of supply to europe. there just is not enough to go around. that is why everyone was watching the strike so closely. now that the strikes are off the table, the market will likely follow. there are some other things happening in the market. some potential problems at a u.s. plant. potentially other supply disruptions around the world. while this is solved in australia, there are some other factors that could push things higher. it is kind of a touch and go

situation for the gas market. >> our energy reporter with the latest. take a look at how markets are faring around the region as we head closer to the boj decision. we had the worst session in about six months for wall street. that carried through drifting lower here in asia. we salt to plan inflation outpacing expectations. that will make not much of a difference. the consumer side really seeing a bit more of a drag when it comes to energy. hotel fees adding to some of the gains. when you take a look at the mood across asia, it is firmly risk off. >> take a look at the currency markets. investors are staying on the

sidelines. ahead of the boj policy decision. and after we got the august core number advising more than expected. we are seeing the korean yuan holding steady. sentiment has worsens, especially with strength in the u.s. dollar near a nine-month high. still to come, our conversation with the governor of the philippine central bank. this is bloomberg. ♪

>> it is 10:00 a.m. in tokyo, the whole