it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. haidi: a very good morning, welcome to "bloomberg daybreak: australia." i am haidi stroud-watts. shery: good evening, i am shery

ahn. the top stories, asian trade said for a cautious start following wall street's first week since march. a slide in u.s. small-cap and industrial stocks flashing possible recession warnings. haidi: hollywood studios and screenwriters are nearing a resolution to the contract dispute of the united auto workers quenches key concessions from ford. shery: china evergrande canceling key creditor meetings, warning it has to revisit its restructuring plan. u.s. futures coming online in the asia monday session, slightly positive at the moment after the s&p 500 fell for a fourth consecutive session last week. the worst week since march. investors repositioning for that higher for longer federal reserve. we had tech outperforming in the previous session. treasury yields falling a little bit, but also apples new products going on sale giving a

boost to the broader sector. treasury yields dropped after, topping 4.5% or the 10-year yield for the first time since 2007. it is old to do with where the fed could go from here, eventually we might get more clues this week as we will get the fed's preferred gauge of inflation numbers later in the week. seeing more upside in oil prices in the asian session after we saw oil rebounding after three sessions of losses on friday and now above the $90 per barrel level. haidi: let's take a look at how all of this is feeding into the start of trading in asia. of course, the inflation debate continues, not to mention the other key theme of where the china recovery theme goes from here. there is more volatility, uncertainty when it comes to big property developers. sydney futures looking tepid, .25 of 1% lower. aussie dollar seeing a little

bit of momentum, it under $65 u.s. we are watching new zealand as we inch closer to the election in just a few weeks time. kiwi stocks looking flat at the moment, and also watching dollar-yen, which is holding steady at 148 .34. mixed started trading when it comes to the dollar within the g10 group. trepidation ahead of the release of the key inflation gauge in the u.s., as well as looking ahead to parliamentary consumer numbers from european colonies -- economies as well. dollar-yen up just about .5 to 1% at the end of the new york session. it comes back to the fed, the inflation debate. fed officials, the court are starting to build in terms of those seeing more hikes and

saying higher for longer, which was the day: it we had from chair powell. that was the readjustment we saw in markets as well, higher for longer and what that means were policy and yields. we heard from a couple of different fed officials, susan collins saying further tightening is not off the table. a governor signaling more than one hike will probably be required. she is one of the most hawkish voices on the fomc. we heard from mary daly saying that she is not ready to call victory in the inflation fight just yet. take a listen. >> there is a lot of information we need to collect. he will not be satisfied that we are where we need to be until we see inflation confidently on a path back to price instability, because the american public as much as they are getting relief, you did not ask us to give us

just a little bit of relief. u.s. testicular jobs. shery: we will get were closer to where the fed will go from here given that we will get the preferred gauge of inflation, and for a third month we are expecting that to come around the 2% level, but it does not matter when economist and fed officials want to see in the core cpi numbers excluding fresh food and energy, because overall we are still seeing inflation hurting american consumers. food, gasoline, car insurance, other essentials, rises there were many elevated. anytime you fill up your car at the gas pump, shop at diverse resource, americans are feeling the pain, so we are talking about this disconnect between policymakers and people struggling to make ends meet, and all of this will make a big difference come 2024 in the presidential elections. it is not surprising then that we continue to see these labor negotiations, ongoing strikes across the country whether it is

in the oil sector or hollywood between writers and actors, given that people are feeling the pain of fire prices. let's turn to the latest on u.s. auto strikes with general motors and still lantus -- stellantis facing walkouts of more facilities with the uaw failing to make more headway. here is what sean fain had to say going into the weekend. >> we can and we will go all out if our national leadership decides the companies are not willing to move. stellantis and gm will need som. all of the parts reservation facilities are being called to stand up and strike. we will be striking 38 locations across 20 states, across all nine regions of the uaw. shery: ford appears to be spared from further pain after the uaw said it won key concessions.

sue keenan as the details. the union maintaining its strike one at the michigan plant but that will not escalated. >> that is true, they want to reward ford for making progress in the negotiations, and this is what is unique about the approach of the uaw taking a departure from its predecessors. it is a strategy targeting all three automakers with a carrot and stick approach, ford being spared further action. 38 plants in 20 different states, gm and stellantis will face escalated walkouts, and biden plans to travel to michigan on tuesday to support the workers. the white house administration not going so far as to support the uaw's 40% pay increase demand but supporting the workers nonetheless. the carrot stick approach by the uaw does appear to be giving it more leverage, rather than what it used to do is it single out

one automaker. these are historic tactics to hit all three automakers at once , and this strategy appears to be paying off. they have 5600 more workers to labor action that already had 1300 union members on picket lines from the three assembly plants in michigan, ohio, and misery -- missouri. they are pressuring the company's with more and more walkouts as the strike is on. it has been two weeks now, and they are very far apart at least in terms of gm and stellantis which both push back on friday in statements where they believe the union's demands are unreasonable at this point. haidi: the secretary of transportation pete buttigieg is talking when-when -- win-win. >> he appeared on one of the

talk shows sunday and pretty much reiterated biden's view that a win-win deal could result if these auto companies do with the president is calling for, which he says is that record profits should lead to record pay and record benefits for the workers for creating all of that value. the biden administration does not want to endorse all of what the uaw is asking for, but they want to emphasize that biden is a very prounion, or a worker president, and he wants to express that by his president. gm and stellantis have logged four years of record profits. ford's profits have been strong. at the union maintains these companies can afford to meet its demands. ford's ceo had previously said the demanded wage alone would put us out of business.

it is a difficult negotiation that is taking place. clearly the strong inflation rate is playing a role, the heavy profits that they can see these motor companies making also playing a role, and while gm and stellantis push back on friday they said they will continue to negotiate. shery: the hollywood writers strike ongoing right now, artificial intelligence seems to be a sticking point. there are yet? >> it looked like there were close to a deal, both sides negotiating for all of the major streamers and studios and for the writers guild awards. ai is a sticking point, because a lot of the production companies want to use ai to create screenplays, and that would put a lot of writers out of business, so that area has not been resolved. this is a strike that is paralyzed hollywood and the entertainment industry for five months.

sources say the studios have agreed to staff a certain number of writers on their shows, which would increase the number of episodes per season, and writers will get bonuses for pop-up shows on streaming services. there has been progress here. executives of netflix, walt disney, and warner bros. had been reading through negotiation representatives with the writers guild awards are the weekend hoping to resolve the strike that began in may. they are not there yet, but there does appear to be progress. the strike has caused billions of dollars in lost revenues not just in the studios but to hairdressers, makeup artists, and others, restaurants attached to this industry. haidi: su keenan with the latest on those labor organization actions. chinese property developer evergrande has scrapped key meetings with creditors as it cuts first out over its proposed restructuring. annabelle is taking a look at

the latest. we have been expecting the sit downs to begin on monday. annabelle: that is what we had worked in the calendar, evergrande would be sitting down with key stakeholders on monday and tuesday of this week. a big dent in focus, because evergrande is trying to push through a very complicated, complex restructuring of its offshore debt, these meetings have now been scrapped. why exactly? evergrande it did not give specific reasons and it statement other than to say property sales have been weaker than the company expected, so that is forcing them to rethink the entire restructuring plan, then there was another part of the readout was interesting where evergrande said it was reassessing the proposal to meet the demands of creditors. exactly which creditors and focus is not clear to us, but would have been or who would have been a key stakeholder at these meetings if they had gone ahead monday and tuesday of this week would have been class c

creditors. they are major bondholders of evergrande debt, and sources have told us so far they have been largely unsupportive of the restructuring proposal, because evergrande needs 75% support from each group of creditors to push through this overhaul of its offshore debt, and so far that is sitting around 30% from these class c creditors. evergrande was due to hold these meetings at the start of this week are now being called off. property sales being cited as a key factor in more time to meet the demands of creditors. who could be class c, why, what the group is asking for is too hard to say at this stage. quite difficult to get a sense check on exactly what they are after. shery: the reason we follow these property developers like evergrande so closely is because of their importance to the

chinese economy, right? how long could we see these property issues drag on for? annabelle: that is right. property makes up about 1/3 of china' is gdp and perhaps even higher when you look at how many second-order effects there are with demand for construction materials and other parts of play, but how long this could drag on for is turning into something that could end up be a multiyear event here. that is because partly so far the measures that we have seen to pop up support have not stimulated demand. take a look at this chart here, china new-home sales in tier one cities. you can see that continuing to take down, even though we have seen a lot of cities starting to relax their homebuying restrictions. in: one joe -- ghuanjoux,

new-home sales continuing to decline here, so the impact it has with a touch all areas of the market we have seen. we have seen it coming across into investment grade but also in stock markets. broadly we have seen investors pulling out of mainland equities. you did actually start to see that pickup and the developers index over a four week. as it seemed like traders were becoming more optimistic on the outlook, but that is actually started to dissipate, and we saw a pullback in the prior week, so the direction continues to be downward here. so far, the support measures that have come through have not been enough to try and stimulate a rebound or return to property markets for investors in mainland china. shery: annabelle droulers joining us from hong kong with the latest on china's property market. these are some of the other stories we are watching out of china. president xi jinping has

reportedly called for enhancing the nation's manufacturing sector with digital and information technologies. state media quoted the president saying china should seek to lead a new round of tech revolution to modernize the industrial sector. premier chung added that china should focus on digital and green technologies to improve supply chains. after a strong summer, china of las vegas travel market is hoping to get another boost is the gold week holiday arrives. more than 21 million people are expected to take flights in the space of eight days across holidays encompassing the mid autumn festival and the national daybreak. bookings between tokyo and china up is because two largest cities shanghai and beijing are among the top 10 international routes for the holiday period. haidi: still ahead, we discussed a de-risking strategy toward china.

the former undersecretary for global affairs paula joins us for that. and investment partners sees the chinese economy turning with stimulus taking an effect. this is bloomberg. ♪

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from blendjet.com. sweat isn't sweet. it's salty. lmnt. more electrolytes. zero sugar. you feel the difference when you get it right. stay salty. haidi: you are watching "bloomberg daybreak: australia." taking a look at the week ahead, front and center inflation, watching cpi prince from australia and tokyo where price pressures are seeing cooling in japan it was because biggest city. pressure further keeping the boj on alert. we are getting u.s. core cb index. the euro zone of underlying price growth is slowing to a 12 month low. on wednesday the bank of thailand expected to lift its key interest rate by 25 basis points. the bank has indicated its

policy rate is not yet at a level that promotes stability and growth, and an china industrial profits and manufacturing emi did it will provide the latest snapshot of the economy. bloomberg academics expecting policy stimulus will lift factory pmi back into growth for the first time since march. other echo data, bpi, jobs and details outside of japan. watching u.s. second-quarter gdp numbers as well. shery: also watching government risks around the potential shutdown early next month with the deadline to reach a deal coming this weekend. how's conservative lawmakers vowing to disrupt negotiations unless their demands were spending cuts are met. speaker kevin mccarthy announcing plans that include in a percent temporary spending cut for domestic agencies and the resumption of border wall construction. china's travel industry is hoping for demands during the global -- golden week holiday.

more than 21 million people are expected to take flights across the lengthy break. he will also monitor outbound travel in particular since china lifted group travel restrictions on almost all major overseas destinations in august. haidi: let's stick with china, because our next guest is the economy is turning and stimulus is beginning to stake -- take effect. let's discuss this with the portfolio manager at tribeca. you just got back from shanghai. what was the vibe? sentiment on the ground, what was that like to you? >> we are actually feeling the green shoot everywhere. the consumer is doing ok. things have been tough in the last few months, but it feels like a green shoot everywhere. the city itself in shanghai has become more cosmopolitan.

i see people exercising in the morning. and people are addressing in foreign label or local level sports gear, and a little businesses, we have seen tiktok models everywhere because there are a lot of small businesses that run their business on tiktok, and there are a lot of things happening in china that so far has not really been picked up by the foreign investors. i was in hong kong for a little bit, and the vibe there is bottoming, and things are looking better, but on the ground in china things are getting better. haidi: where do you see the opportunities? where do you invest along the consumer being resilient and where do you avoid if there is a systemic drag from the property sector? >> consumer sentiment is still looking weak giving pay cuts and things. the consumer is looking ok.

they are looking at 3.5 percent growth, there is not much inflation, mortgage rates coming down and some of the transformation mechanism for mortgage rates are being improved, so the consumer is going to do better. we have got golden week coming up. travel in tengion is strong, and outbound at the moment, because capacity is still only up to 50%, so there are not enough planes, but we do expect significant pickup compared to previously. in the next 12 month outbound should improve from 50% capacity to 75% capacity. mr. travel within china is very strong. you want to be in consumer names and a lot of consumer stocks have been soft because of sentiment, earnings are doing well and they are trading on very low multiples. some of the sports gear names i talked about our taking significant market share from some of the foreign brands. there are a lot of opportunities there. it is waiting for investors to get confidence to come back. shery: what are the

opportunities in the u.s.? we are seeing recession signals in the stock markets whether it is small cap or industrial stocks feeling the pressure. >> in the u.s. it is interesting, because you actually see overall obviously the growth has performed very well. it is the cyclical that will be looking cheap. like you said, it is going into a slow down. consumer names will be top of the u.s. market and the developed markets, because the next two quarters is probably going to be experience some of the weakest quarters if not recession, so in that environment you do need to avoid some of those cyclicals. they look cheap, probably a good opportunity to buying some of them but definitely not setting the full position yet because we are heading to a slowdown in the next six months. haidi: we have to leave it there for time, but great to have you, and great to get that contrary

and optimistic view when it comes to what we can get from the chinese economy. jun bei lui joining us. more to come. this is bloomberg. ♪ temperature benefits. save $400 on the new sleep number c4 smart bed. now only $1,499. sleep next level. shop now only at sleep number explore endless design possibilities. to find your personal shop now only at sleep number style. endless hardie® siding colors. textures and styles. it's possible. with james hardie™. was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com

shery: you were watching "bloomberg daybreak: australia." the latest corporate stories we're tracking, john will shudder at the hedge fund he started after the collapse of mf global holdings. the new york-based money management firm terminated its registration with the sec as of last friday. the loan investment vehicle add gross assets of about $510 million, including leverage at the end of last year. svb has agreed to sell and further stake in a portfolio of school buildings to brookfield asset management. the struggling swedish landlord

will sell off 1.6% holding in the education division to brookfield, making the investor the majority shareholder. we will see sbb get a catch injection of $720 million to stabilize its finances. we speak exclusively to the ubs group ceo about his outlook for the global economy. catch of that interview later today.

haidi: the u.s. is said to establish diplomatic relations with the pacific nations of niue and the cook islands. this is a fascinating area to look up. >> there will be a formal

announcement this week. there is a two day summit coming up between the u.s. and the leaders of 16 pacific island leaders at the moment. niue and the cook islands will receive diplomatic ties to the u.s. the cook islands, a population of just 18,000, but they are strategically important, and china has been making inroads in the pacific and courting the region for years, offering cheap loans and setting up security packs as well. the white house has this meeting and diplomatic relation is all about strengthening ties, climate change, promoting economic growth, the subtext is china. shery: not all leaders will be at the president's summit. who is missing and why? haidi: the prime minister -- >> the prime minister of the

solomon islands will not be there, and that is a bit of a snob because he was at the u.n. general assembly. the white house is disappointed that he will not be there. it was the solomon islands who signed a security pact with china last year and has a long history of unrest. the u.s. opens and embassy in the solomon islands this year, and vanu atu is the other non-attendant here. he is facing a crisis at home. he came to power in a no-confidence motion after the former prime minister signed a security deal with australia. china, the biggest creditor for the country and we have chinese police arriving to assist with the political unrest going on there as well. these countries are small and often overlooked in geopolitics, but they are center stage in this u.s.-china struggle. shery: paul allen joining us

from sydney. the chief economic advisor to german chancellor shoals says europe should not be too nervous about the u.s. inflation reduction act. speaking at an atlantic council forum in berlin indicated germany is earmarked $119 billion to invest next year in decarbonization. >> on the discussion in germany around the inflation reduction act, and i am sure that is what you are getting at, so we may as well name the elephant in the room if it is talked about so visibly. we have taken a quite differentiated stance, right? on the one side we voice all of our letter will discussions that we think localization of production rules are not in the interest of global free trade. however, on the other, we also

acknowledge that first of all it is extremely positive that the united states launches a program of several hundred billion dollars that will help progress of the cause of decarbonizing our economy and achieving climate neutrality, and therefore putting their money where their mouth is, just like europe is doing. and if i compare the economic size of the united states of america and the european union and if i can. the amount the united states is spending to progressive that aim through direct fiscal support of different industries, it is not like the sheer size of what the u.s. is doing is larger than what the european union is doing.

this year alone, germany just passed a budget where germany next year will invest $112 billion euros into the court -- decarbonization of our economy through support to citizens, companies, projects, which is similar in principle to what the u.s. is doing in the inflation reduction act. in that sense, given that we have the fiscal power and willingness to do similar things in size as the u.s. with the inflation reduction act, and as i said qualitatively it is not that different, i think we should not be too nervous about what the u.s. is doing with the inflation reduction act. i think europe has to wake up in a sense to the policy design that the inflation reduction act

is making, instead of the european approach. shery: the german chancellor's chief academic advisor speaking at a council forum in berlin. recession signals are cropping up in stock markets while bank of america sees investors dumping equities at the fastest pace in months. let's discuss and bring in annabelle and hong kong. which indicators are in focus? annabelle: we are focusing on u.s. stocks in particular, but essentially it is two different indexes, the russell 2000 index and the industrial index of the s&p 500. this is taking a look at the moves and these over the past couple of months, but what we have seen so far is that pullback in the industrials index teetering on the edge of a correction. we had several major u.s. carriers cutting their profit outlook for the third quarter, given that sudden jump we have been discussing in oil prices in particular, and also the

small-cap russell 2000 index has lost more than 11% since its peak at the end of july, but nearly 10% this period, so nearly double when you take a look at the s&p 500. drops in small caps and industrial stocks typically occur when the economy is it a recession, so they are the indicators we're looking at here in particular but let's change on and take a look at how investors are reacting to this, because some are saying it could be a recession indicator, telling us we have got that contraction that is really underway. others are saying it is really too soon to signal or understand whether equities are telling us that a recession is underfoot, given that we are still coming into the next earnings season, so we need more time essentially to confirm that. if ned davis research says stocks are signaling recession, it is still in the early stages,

so we need to wait to see whether the year end momentum is going. haidi: the direction for stocks, so much of that hinges on the fed. annabelle: that is right, and there are so many different perspectives still building. are we going to see a further height by year end? morgan stanley just added interview with their chief u.s. economist, and the chief saying will will not see any further fed rate hikes. there are a couple of different factors, but they are looking at the increased slack coming through in the labor market and the slow down we have seen in jobs as well or in job gains, because that has been noted by the fed and the latest statements. the three month averages what morgan stanley is looking at. the labor market movement, also the deflation or disinflation

starting to show up in cpi figures, so essentially morgan stanley is saying if we are to see any further hikes by the end of the year, the bar will be set extremely high. we will need to see further price pressures coming through, further gains in the labor market, but let's change on and take a look at what morgan stanley is forecasting for fed rate hikes moving into the course of 2024, because they are expecting rate cuts to start by march and then go on a quarterly basis 25 basis points per quarter over the course of 2024, so the fed are expecting two cuts over the course of next year, so morgan stanley a little more aggressive in their outlook for the reduction in the titer rate. haidi: we will take a look at another one of our top stories, the eu's chief trade negotiator after launching a subsidy investigation into chinese ev's.

we take a look at that trade relation next. this is bloomberg. ♪ grand canyon university's rn to bsn online degree program with local in-person clinical hours makes earning your bachelor's in nursing possible from wherever you are! find your purpose at grand canyon university. visit gcu.edu we can barely keep in stock. blendjet 2 gives you ice-crushing, big blender power on-the-go. so you can blend up a mouthwatering smoothie,

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effectiveness of the tariffs it is important to be specific about the statutory requirements, because we have got to follow the law. so we began that just about one year ago. we are engaging in a very robust interagency process. we requested comments from the public across our economy. we had an open public comment period that closed earlier this year that generated 1500 comments that we are going through very carefully. haidi: the u.s. trade representative speaking at the atlantic council forum. tai says her agency is looking to finish its review of tariffs on more than $300 billion in chinese goods this year and adds washington is being thoughtful about how to rebalance its trade relationship with beijing. the eu chief trade negotiator

says the bloc is trying to strike a new balance in its trade relationships with china, describing their trade is very imbalanced. he says the eu wants to reduce its dependency on china while maintaining access to its market. he is on a four day visit to china and holding talks with officials after european commission officials announced an anti-subsidy investigation into chinese ev's. shery: let's get more on talks happening on the heels of the u.n. general assembly high-level week. joining us now is the former u.s. undersecretary of state for global affairs and senior fellow at harvard. great to have you with us. thank you for your time. let me start with the eu-china conversations going on right now. what sort of outcome to be expected when the divisions between the west into beijing

seems so clear right now? >> i am a bit skeptical that there will be any satisfactory outcome from the eu standpoint. clearly the chief trade negotiator stated very clearly that he would like to seek a balance. he would like to ensure that these barriers are taken down. there are rather significant barriers to european companies, and on the other hand you have the chinese who want the eu to stop its investigation regarding the subsidization over electric vehicles, and the eu has stated very clearly that they are not willing to do it. so quite frankly going into this i do not think it will end up being balanced and i think it will be contentious. shery: there have always been these trade issues ongoing for years not to mention this tech rivalry between the west and china, but now we have the ongoing issue of the war in

ukraine, a key topic during the u.n. general assembly high-level week. how much deeper have the divisions gotten because of this war? >> i think that there are two aspects to this. there is first the political aspect, and i think from that standpoint there have been lines and divisions drawn. clearly the west has been rather united in terms of its support for ukraine, in terms of military support, in terms of the issue of ukraine reconstruction and rebuilding, but when it comes to trade relationships, china does happen to be for europe actually the third largest market for its goods and services, so in that sense i think that they are striving to strike a balance here. but two of the issues that are thorny from the chinese side, one is this investigation on the electric vehicles and subsidization of electric

vehicles, and the other is ursula von der leyen of the eu has spoken to human rights issues, which the chinese do not like having that integrated into the discussion. so you have on one hand i would say political support for ukraine and military support, but when it comes to the basic trade issues, i think we have seen some of the same issues arise here, but i have not seen a diminishment or to use the term a decoupling on the trade front. haidi: this is a thing, we see a number of major economies trying to rebalance or find that balance with their relationship with beijing. i do think there is more incentive for beijing to work with their trade partners more willingly given the state of the domestic economy? do you think their trade partners could push a little bit more given may be the power dynamic is shifted a little bit?

>> that is a good question, and it really makes sense, because china's economy has been strained, and there have been many countries that have indeed over the years that have moved their manufacturing away from china. for example, both korea and japan have done so and they have moved it into india and other locations, so one would think so, but quite frankly i have not seen a shift in that regard. the talks have been rather tough, and i think going back to your very first question, which is key, i do not think this is going to result in the rebalancing for europe at this time. i think it is still going to be quite tense, and i do not see a real chef there. haidi: how difficult is it more broadly when it comes to these global platforms. you talk about discussions,

disappointment from the communiques we have gotten from the likes of the g20. how difficult is it to expect any kind of slim progress given how divided we see the world with these rival blocs and given the huge economic challenges a lot of economies are facing right now? >> let me go to the unga. i think you had on one hand, we know that xi did not attend, nor did russia were france and the u.k. president biden used it to try and encourage a kind of as he termed it management of the competition. i think there was contempt in his remarks when he emphasized de-risking over decoupling. he actually was trying to extend

a fig leaf and say let's go back to basics, let's look at those areas where we can cooperate and collaborate. and, of course, one of the areas he focused in on happen to be climate change, and that is key. china actually in terms of the market looms large in terms of solar panels, as we know. he emphasized that kind of let's look for areas of corporation. the question will be will we see that come from such kind of action, because on the other hand, also during the unga president biden did not meet with the central asian countries, and china has been in there very aggressively and economic, so the question remains can we really come together in a collaborative way? i am skeptical on that quite frankly. i just have not seen even

despite the overtures from the u.s. administration, i have not seen the chinese pick up on it. and there is one more point relevant to your question. when you look at all of the other countries, all of the other countries underscore the global south, albeit, were actually looking at what favors then, whether it is the u.s. in some cases were china in some cases or other countries. and i think they are not going to be swayed in one way or another, and that is a challenge going forward. shery: you would think that climate goals would be something everybody might be able to agree on, but as you can see during the u.n. general assembly it is about who bears the responsibility of the nations, financing becoming an issue and all of those as we head toward cop 28. when you look at china as trying to portray itself as the representative or leader among developing economies, the global

south as we say sometimes, hallowell has it positioned itself? >> its position is rather shaky. first, i happen to be a negotiator for eight years in climate change negotiations, and at the cops something someone would hear very often, the group of 77, which are the developing countries, and then china. many of the island states that in fact you were even referring to earlier on the program, by the way, there are many pacific island states that would like trying not to be part of that. if china is going to be a global leader in be engaged, why is it part of the group of the 77 developing countries? and then on the other hand fosters itself strategically as a great power. so you cannot have it both ways. i think the result of that is that there are many countries

that then do not really like the engagement. they might benefit certain ways from china, but they also feel they have an economic stranglehold that comes after some kind of let's say grant that is given, whether it is the building of a road or hotel. right now to answer your question, it is a bit shaky. haidi: really great to have you with us and sharing those insights. the former u.s. undersecretary of state for global affairs. we do have some breaking news to note when it comes to qantas commenting on surging you will cause. feel because of by $200 million aussie. fuel prices have increased by 30%, we have known this given the surge we have seen in crude prices. travel demand remains strong, the first quarter is similar to

the fourth quarter for 2023 and it comes to expectations. qantas is set to invest in customer improvements. we have heard them talk about that lately. qantas has been under enormous pressure when it comes to a string of headlines that have culminated, their fall from grace. they were sued by the competition regulator for selling seeds on already canceled flights, that was the allegation as well as their firing of 1700 workers, which was found to be the case by a federal court. we are now looking at it relieve the fuel cost pressures when it comes to these airlines, given we are seeing nascent recovery and it comes to asian and chinese oil demand. oil gaining 30% over the past three months despite easing off of those highs, a tumultuous week for crude trading last week. much more ahead.

this is bloomberg. ♪

shery: you are watching "bloomberg daybreak: australia." let's get to some of the geopolitical stories. the people's liberation army has urged chinese military personnel to be careful about who they associate with. the state run pla date he says

they should purify their social circle, warning that some leaders have been removed after socializing with the wrong people. the commentary follows the removal of someone in the foreign ministry and the defense minister's disappearance from public view. our media has lent a lack of support from regional allies in its conflict with neighboring azerbaijan. the prime minister said in a televised address is country is no longer being protected by allies without directly naming russia. his remarks came days after moscow decided not to intervene in azerbaijan's military operations to take control of the disputed nagorno-karabakh region. this is bloomberg. ♪

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