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shery: you're watching daybreak a show live from new york, sydney and hong kong. haidi: the top stories, asian stocks are lower as volatility ratchets up. the dollar is extending gains. tesla in the crosshairs as a beneficiary of subsidies. the ftc is accusing the e-commerce giant of monopolizing services in challenging sellers. shery: take a look at futures. muted moves after the s&p 500 fell to the lowest level since early june. we are on track for the worse month this year. the fear gauge is climbing above its average to the highest level since may. investors are digesting data

with consumer confidence following read treasury yields drifting. the 10 year yield at 453 levels, decade highs. we've been watching the upcoming preferred gauge of inflation, that will be one to watch in terms of the fed and a potential shutdown leading to safe haven demand in the dollar index at the highest level this year. seeing its longest winning streak since august. we continue to watch oil prices as well. haidi: that will be key as we get the stereo cpi read today. that's going to fade into what that means for policy. let's get some news on the return of volatility read ceo at defiance etf's joins us. great to have you with us. volatility breeds opportunity.

how are you viewing the narrative when it comes to markets? >> good morning and good evening. in some cases this could be an opportunity for investors. if you were an investor on the sidelines you had fear of missing out for not getting into tech and riding the wave up on the gains in the nasdaq, this 10% pullback or more if you pick apart some specific names is a good opportunity. in the short-term we don't like the news. rates stay higher in the fed is proposing cuts. however, next year we are talking about cuts. markets are forward-looking and it is these times where it feels like the worst thing to do is jump into the market where the opportunities lie. haidi: you jump in if valuations

look attractive when it comes to tech? >> i like the fact that the largest stocks have pulled back, anywhere from five to 10% or more. if you think of amd, alphabet, even apple came off of its recent highs and you have a lot of good stories. iphone sales are projected to outperform. it is the staple. these names have a lot of gusto driving the market up through july. if we settle through september which we know is a terrible month, getting tailwinds behind us in october when we see earnings and if they kind of hold up, that opportunity will be there. shery: is a recession in play and what does that mean for treasury yields?

we see multiyear highs. >> the recession question is on the investors mind. it is hard to say whether it is on the table. it feels like a soft landing. jobs are weakening, inflation is coming down, corporate earnings are holding up, so they have slowed. gdp was positive, double what we expected ito be read it's hard to think that we are in a recession. it could stress into a recession and if next year turns out to be zero rate cuts, companies did a great job of managing cost effectively read they optimize workforce, technology. they used ai, supercomputers. they digitalized factories, so it worked.

if rates stay too high, i do not expect that to be the case. inflation is coming down, not in a linear way but energy came into play in that will stabilize. shery: are you watching a potential government shutdown and what would that mean for your portfolio? >> so the government shutdown is a cherry on top of the market that is not doing any favors right now. it's we have geopolitical tension concerns, and auto strike. we have worries about the fed, so it is not something that stabilizes the market but i do not think it will have a meaningful impact on the markets. shery: all of that is feeding into dollar strength. what does that mean from multinationals and does that change your perspective of some companies that are exposed to international markets as well?

>> that is the tricky part. i think emerging markets suffered more than most investors expected it would. post-covid, that was a trade that everyone soaked up and there were problems read the first was the inflation and the second was recovery in china was not what the market had hoped for, what investors that hoped for. until those pieces of the puzzle are sorted out and rates stabilize, we get away from rate hikes. in china you see things turn around and you got the story in the beginning of the year, january, february, when the world reopened, china was blazing in terms of investment opportunities and we thought that would trickle down. emerging markets are going to be suffering for a year or two but long-term investors, these are

the times when if you can put it in your portfolio and forget about it, the look back will be attractive. haidi: we've been following the eu investigation into china for their policies and tesla has been in the crosshairs given how much it ships into europe. you are optimistic when it comes to carmakers. >> bumps in the road with policy or playing out in a different sector but overall it is a macro growth story. we were talking sales at 5%. right now the number is above 14%, thought to finish above 18% by the end of the year. the growth will double to 30% between 2030 and 2043 in china

more than 60% of vehicles are ev's. we have government incentives, more ease of use. in those help if people want to buy one. the bigger thing is climate change, generational shifts, new technologies. if ai is the future of tech, then the eeev use are the future of automobiles. shery: ceo and cio of defiance etf. let's stay with the ev theme because tesla shares slipped after bloomberg reported chinese made cars are in the crosshairs of the eu anti-subsidy investigations. tesla has emerged as a company benefiting from beijing's policies. su keenan joins us with the latest. and what are they looking at? su: subsidies involved with

chinese electric vehicle makers. and they ship more cars that any rival other than china makes it a prominent figure. there is the fact that elon musk is high-profile and bloomberg sources have told us that as the information gathering portion of the investigation has gotten underway, it has been revealed that tesla has come to the forefront as a company that is receiving a lot of benefits from subsidies. there is a possibility it may lead to levies. sources say you're working on how big the levees could be. the aim would be to level the playing field so you don't have exporters from china offering better prices than european carmakers.

investigators will determine whether china has subsidized investors. all of those took a hit in the latest session. you're looking at here today gains. these companies have done well. tesla is up hundred percent. ursula made it public and indicated it has the -- in europe there is a lot in stake for the china carmakers because the european block is a highly lucrative market. haidi: it is no secret tesla has a few perks from opening factories in china.

expect that china would be the carmaker in this investigation. su: you have the state blessing to own the tesla facilities located in china. layer on tax breaks and cheap loans and other benefits. these are the kinds of things that we are told investigators are looking at. what is being provided to manufacturers including credits from banks, capital provisions from investment funds and land in electricity. all of these coming under scrutiny. carmakers benefit from subsidies in sectors across the value chain link batteries and software and we should point out tesla started expanding sedans built in the factory in late 2020. by 2021 tesla referenced its plant as its main vehicle export of.

tesla sold an estimated almost 70 -- 94,000 cars that were made in china and sold into western europe, about 47% of total deliveries in that part of the region. again, this is a key market for tesla. no comment from tesla or other carmakers or the eu at this point. back to you. haidi: su keenan with the latest. let's take a look at how we are setting up when it comes to asian markets and the return of volatility, fasten our seatbelts. >> return of volatility and a risk off session. moves in focus kicking off dollar strength, the present theme in the market is higher for days. you're seeing that play out in the early hours because the japanese yen are above the 149

level. given what we've heard from the boj reiterating the need for stimulus measures, 150 could be the line to watch but what else we are seeing, subdued trading in the bond space when you compare to what we had yesterday, given the big moves of the long end of 10 year yield steady but the equity space is recalibrating and continuing to digest the narrative of the fed higher for longer, plus consumer confidence numbers coming through, the deterioration. the macroeconomic backdrop is deteriorating, weakness looking ahead. let's take a look at the moves in asia and a global perspective because when you see on the index, we are at the point where we have had eight down days in a row, that is the longest losing streak, one of the longest in about a decade. the question is whether that

will extend into a ninth straight day and that is the way things are shaping up. haidi: annabel in hong kong ahead of the market open and still to come, a closer look when it comes to fs markets, traders on alert for possible yen intervention as we see the dollar accelerating. the strongest close since december. the ftc hits amazon with a fourth lawsuit alleging monopoly practices that harm buyers and sellers. we will hear from the chair next. this is bloomberg. ♪

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ahhh ♪ shery: the u.s. ftc is suing amazon in a long anticipated case, accusing them of

monopolizing marketplace services. let's bring in vonnie quinn. this is not the first time that they targeted amazon. what is the lawsuit saying. >> it's the fourth time this year and 17 states have joined in the lawsuit. it says amazon is monopolizing online markets and not a bear to consumers and sellers. in that they can drop sellers all the way down the search engine to the extent where you can't find them unless they are ready to pay for crime. suggesting businesses will have to use amazon's advertising and logistics services. they would have to use amazon to have products mailed. all of that adds up to hefty charges. in the lawsuit it says for some sellers 50% of revenue goes to amazon. amazon is fighting this.

and it's a huge chunk and rising, so it is obviously the case than amazon is often. we know amazon has met with the ftc, has not done anything since it's met with the ftc and its fighting tooth and nail. the complaint does not ask for specific remedies, but it mentions structural relief and that means divesting and asset or breaking up a business. you're going to hear in just a minute but i'll give you polar alert, she does not call for breaking up amazon or solicit we say that it's going to be broken up. she is restoring competition to the market on top of requiring amazon to hold those kinds of tactics. haidi: the biden ftc has a record of success that is mixed, so what are the chances against

amazon? >> she has been preparing this since her student days. she wrote an article in 2017 which was only six years ago that used amazon is a test case for a reimagining of antitrust environment in the united states. so everyone in the antitrust sphere and big tech companies have been waiting for this case to come from the ftc. now the reason it is going to be difficult is that yes, they lost a couple of major cases just this year alone and failed to block microsoft acquisition of activision although it is conducting a case related to that. it fair to -- failed to block amazon's therapeutics and hedge funds have profited very nicely from the losses.

-- is one of those that bet against the ftc. experts point to the fact that amazon has a good case and is going to fight. it is hitting where it hurts saying it is actually departing from the mission of protecting consumers, so bet your money on the fact that amazon will have excellent arguments to make here. haidi: bloomberg's vonnie quinn. this represents a career defining moment. the ftc chair told us more about the allegations against amazon. >> this is unlawful tactics amazon uses to maintain monopolies. in the complaint a set of anti-discounting tactics that amazon uses to punish any seller or retailer that dares to discount and these tactics deter sellers and retailers from lowering prices and closes off

an entire dimension of price competition. the other tactics are a coercive scheme amazon uses to require sellers to use fulfillment service. this ends up stunting the development of independent fulfillment providers and deprives actual and potential rivals. that is the core theme here. these are tactics but ultimately amazon has pursued them to deprive potential competitors of the ability to gain the scale and momentum needed to compete online. having achieved and protected its monopoly power, the complete details how amazon is exploiting the monopoly power in ways that harm customers. both sellers, tens of millions of american families that use amazon to do shopping, but also -- shoppers but also sellers. tens of thousands of sellers use

amazon to access those shoppers and it has done that through raising prices. amazon takes one of every two dollars from sellers that use it to form. it has also degraded service by adding a set of pay to play ads that make it more difficult for consumers to find what they're looking for and seduce them to higher products. i really encourage everyone to read the complaint that details this conduct in great detail. we are looking forward to moving forward with it. >> one of the things is you are seeking structural relief in this case, which implies a breakup. what without look like? >> the complaint is focused on liability. we lay out a scheme that violates u.s. antitrust laws. what we know is that different aspects of amazon have an

aggregated effect. the harm of accumulating feedback loops, the net exclusionary is quite significant. we want to make sure any remedy is halting illegal conduct, preventing a recurrence and ensuring that amazon is not able to benefit from illegal behavior. we are squarely focused on liability but when we get to remedy, those will be the principles we are focused on. shery: ftc chair lena speaking with eddie collins in washington. get a roundup of the stories you need to know to get your day going in daybreak. terminal subscribers go to dayb available in the bloomberg app. you can customize settings so you only get the news on industries and assets that you care about. this is bloomberg. ♪

♪ haidi: taking a look at top corporate stories today, openai is speaking to investors about a potential share so that when rally the startup. the wall street journal says the valuation would be almost three times with the company was worth earlier this year the deal would allow employees to sell shares instead of the company issuing new ones to raise capital. alibaba's logistic harm has filed for its public offering. the first time they could raise $1 billion, jp morgan are joint sponsors of the offering. alibaba wants to retain more than half of the shares and keep it as a subsidiary unit. shery: take a look at how currencies are trading, upside

when it comes to the u.s. dollar. the longest winning streak since august on rising yields but also safe haven demand given potential u.s. government shutdown. on the other cited trade we have seen a significant weakness in the swiss franc. the longest losing run since 1975, also very close to 150 level for the japanese yen as the offshore you one is under pressure. coming up, credit cib shares whether think the dollar is overbought with trading ahead. this is bloomberg. ♪ you're probably not easily persuaded to switch mobile providers for your business. but what if we told you it's possible that comcast business mobile can save you up to 75% a year on your wireless bill versus the big three carriers? have we piqued your interest? you can get two unlimited lines for just $30 each a month. there are no term contracts or line activation fees.

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plan to keep the government open through mid-november. it still needs to overcome divisions in that house from republicans. let's bring in bloomberg congressional reporter laura. october 1 is around the corner so as a government shutdown inevitable or will divisions be overcome until then? >> largely because of where we are in the process, that is a perfect case scenario that there would be a shutdown that could last for a week. there is a bill in the senate if they come to agreement on a bipartisan bill, one senator is objecting. in the senate any one member can hold up the process read then it we need to go to the house. it would take several days to be brought up for a vote. so it's a multi step process and

there is a chance things could go wrong every step of the way. we are looking at a shutdown somewhere around one week or more. the upper bound is unknown. the last time there was a shutdown for 35 days. haidi: so we are also watching president biden's trip to michigan and the ongoing auto worker strikes. what does that tell us about messaging from the white house? >> you're seeing a lot of the campaign message play out in michigan. biden went there today and was on the picket lines the workers to stick with it, they deserve higher pay and we are likely to see some momentum playing into the strikes over the next couple of days.

trump is headed there tomorrow, a little bit of a different event that he is planning, a rally style, trump preferred format. and the ability to screen for folks who like trump and pro-trump voters. this is really a key battleground state in 2024, especially blue-collar workers. this is an area were trump and biden feel at home. trump winning in 2016, biden winning it back in 2020. if you look at polling, it has flipped. joe biden had the edge and now trump is favored in the most recent. shery: where is the broader american public when it comes to these auto strikes? what does that tell us about labor issues becoming a key focal point in 2024?

>> a majority of americans are for the strikes. we have seen several major labor actions. the writers strike where they came to a tentative agreement. we saw the ups workers not going on strike but getting a very good deal, big pay increases after threatening strike read railroad, same thing. this is something that is having a moment right now, labor is having a moment. union membership is still very low among american households, over 10% of people belong to a union. but you see favorability is increased. in other industries that have not unionized are seeing a lot of momentum. for joe biden that's a good thing. he wants to be the most prounion president and he's having this moment while in the white house. haidi: that was bloomberg's

reporter laura davidson. let's get you to annabelle for the markets. annabelle: survey results came to the top. this is the latest reading from our private economists on the outlook for china's gdp over 2023. what we are seeing is economists are seeing china meeting its economic target of i've percent by a whisker. at 5% flat is the projection for economic or gdp growth over 2023, a slight down take from the last survey reading of 5.1%. a small move to the downside. what we are hearing is that property is ranking among chief concerns. if you take a look at this chart, really putting views into

perspective because we polled 21 economists in 17 said the property market was not the biggest risk read how long housing sales slump is going to be persisting, many that we surveyed saw and extending into 2024. 38% saying sales will only halt their decline by the second quarter of 2024, even later on. the weakness in china's property sector is playing out in currency. look at this chart, we've been tracking the moves in the chinese yuan closely. really testing the 2% trading limit set by the pboc, approaching the 7.3 mark sitting around 7.3. it's not just an expression of weakness, dollar strength is playing into this as well. shery: the highest levels and seeing the highest winning streak since mid august. let's bring in our next guest to does not expect the dollar to

stay at the current lofty levels. with us is david forrester, senior strategist. great to have you with us. of course this is coming at a time when we are seeing potential safe haven demand given the u.s. government shutdown around the corner. is it a matter of technicals given how high the dollar is at right now? >> when it comes to u.s. government shutdowns it creates a bit of safe haven flows into the u.s. dollar but research shows previous shutdowns during the actual shutdown, the dollar weakens against safe havens such as swiss, yen and gold. when it is resolved, we may not get that resolution in the near term, the dollar tends to bounce back. it's but we have to be concerned how much the shutdown will impact the economy. yes, you get safe haven flows but once again the yen, swiss

and gold could benefit. shery: let's talk about the japanese yen because we are now headed toward 150 levels. some have said it could be the threshold for intervention from policymakers. where do we stand on how much weaker the japanese yen can get. you have rate differentials at play. >> that's correct. the widening differentials between japan and the u.s. are driving on the mentals and you have job voting -- jawboning from the minister of finance on the intervention front. it's not just about levels. recall that the minister of finance in japan has to justify intervention to the u.s. treasury, particularly dollar-yen on levels on the

ground while curbing excess volatility. the volatility due to the intervention we have seen has collapsed. we've got dollar-yen caught in the smallest range in six months. we've got implied volatility. it is a bit of a game of chicken and this is the way they like it because markets are afraid of pushing dollar-yen hi to fast in triggering division. former boj governor has to find excessive volatility as to does three you big moves in a trading day and we have not seen near that volatility. markets are afraid to push higher and that is keeping the dollar-yen caught in that range. it can hire but investors are afraid of that intervention.

haidi: the finance minister is speaking in tokyo as we are speaking at the moment, saying he is watching fx with a strong sense of urgency. would they be watching the nominal exchange rate or be more concerned with an effective exchange rate given levels of inflation and how this potentially could really exacerbate weakness when it comes to purchasing power? >> that is an excellent question. they focus on dollar-yen because it is a large weight in the basket. they also focused on the chinese en. if the chinese because of relative competitors but also you get a lot of export revenue or investment revenue coming in from china back to japan, they

have to pay attention. in terms of the words being used, the words on our level of intervention skills, seven is morning of yes, we are about to intervene. level six is when they are watching fs -- fx markets closely. they're not ruling out options to deal with excessive excess. excessive volatility and things like that. haidi: there was a time of calm when it comes to fixing. is the 2% something we need to watch more closely in terms of how much tolerance there will be without volatility russian mark it does not seem that there are many near-term catalysts for reversing sentiment on the chinese currency.

>> is not just about the chinese currency. it's about u.s. dollar strength and rate differentials between the u.s. dollar. yes, the tolerance level has been tested and you've seen strong signals from chinese policymakers that there are not going to be much more tolerant of volatility. the important thing is we are heading into golden week, so i think they would want to set a strong precedent before the shutdown. shery: given the divergence in monetary policy we've seen weakness in the swiss franc. historic really. who are the ones that are going to get hit the most? >> when it comes to rate

differentials, we also have risk off trading as well. we do have the use divergences and it is creating volatility. the yen has been weak but it has been one of the better performers in fx alongside the u.s. dollar because the dollar tends to drag higher you had risk off trade supporting the risk frank. s&p has been aggressive about fighting important inflation and supporting the frank. when it comes to which currencies take that hit you've got to take into account not just rate differentials but what is occurring in equity markets currencies that tend to take the biggest hits, commodity currencies get hit by risk

aversion as well as higher interest rates that are driving risk aversion. haidi: senior fx strategist, great to have you with us. we continue to watch the yen in terms of the intervention language. strong sense of urgency. taking a look at top corporate stories, jp morgan has announced settlements to resolve woes over its banking relationship with jeffrey epstein. the biggest u.s. bankers agreed to pay $75 million to the u.s. virgin islands and reached an agreement with the former executive. we learned in june that they settled with victims for $290 million. wells fargo and center bridge partners join forces on a direct

lending fund, targeting 5 billion dollars including tuna have in equity commitments. it will make senior secured loans to middle backed firms in north america. more to come on daybreak asia. this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh

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haidi: top management of qantas will face an australian senate inquiry as the airline battles to improve its reputation. paul allen joins us with more. a lot of problems piling on, what is the focus? paul: landing rights for qatar airlines. it was without explanation and they had built up goodwill during the pandemic with australians stranded overseas. the minister catherine king is not going to be there. she has taken two weeks of leave despite the inquiry. she has not talked about documents related to this either, so it raises questions about how much influence they have on the decision we will be hearing from virgin airlines

which is a coaching partner. a couple of domestic operators are talking about slot holding on qantas aimed at squeezing out the competition. you can see a theme emerging it happened under the former ceo and he brought forward as retirement. shery: can we expect high-profile departures? paul: the acts appears to get sharpened. it's time for him to go as well as the board, all of whom were in place and offered support to alan joyce during his time as ceo. the australian shareholders association adding to the calls that it is time for him to step down. he had suggested he had the support of shareholders. it appears it might be

evaporating because the scandals keep piling up. it's not just the airlines theme, it is the illegal sacking of 1700 workers during the pandemic. the selling of tickets for flights that have been canceled, the ghost flight scandal. this will come with potentially hundreds of millions of dollars worth of liabilities. we've seen brokers starting to downgrade their outlook, so we will see how enduring loyalty is i guess. shery: paul allen joining us with the latest on qantas. coming up next, why japanese auto companies look set to be a major beneficiary of the detroit strike. details coming up. this is bloomberg. ♪

♪ shery: watching japanese automakers at the open in tokyo. they may be a beneficiary of the detroit strikes with less competitors likely to get logged down patients that hurt sales. let's get the details from asian stock reporter. is this a net positive for these carmakers? >> good morning. yes there is a growing perception that the industrial

production in detroit will benefit japanese carmakers. nobody really knows how long it will take two and negotiations but some look at the example of 2019 when workers at general motors spent 40 days in their strike. one thing to keep in mind is political climate is a little bit different from the last time. president joe biden just visited michigan and there was a visit by donald later today. and that underscores not only the importance of the state of michigan but also shows the political atmosphere of the u.s., in the u.s., ahead of the election year. so basically people think that

the labor unions is in a very good position in terms of negotiation and that points to the possibility that talks could last much longer than some investors expect. so investors think that this is clearly something to keep their eyes on in the coming weeks. haidi: what about the non-us carmakers, korean and german carmakers? >> right, yes. so they are also likely to benefit. if you look at the numbers, japanese carmakers are by far the largest foreign carmakers in the u.s. and they have a market share of a third, that is more than double the numbers for korean and german carmakers. and also the flipside of the

coin is for japanese carmakers, the u.s. is by far the most important market. borrowers receive three quarters of revenue from the u.s.. and for honda and nissan it is more than half. so what happens in the u.s. market is critically important for japanese companies. and therefore they are not likely -- they are likely to be effective the most by what is going on at the u.s. victory. shery: senior asian stocks reporter with what to expect from japanese markets, but we have minutes from the bank of japan's july meeting and we are now hearing boj members say it is important to continue with using. many members saying they are hitting the price target but it is not in sight yet. this was a july meeting when the bank of japan surprisingly tweed

to yield curve control mechanisms and allowed the 10 year yields out to one person -- 1%. we seem boj officials sending the message of easing to come, given that inflation may not be just there yet in a sustainable and stable manner. one member saying they're waiting for underlying inflation trends to rise again. we've seen inflationary pressures in japan but not from demand which policymakers want which might be more sustainable for the economy and especially when it comes to wage increases as well. another boj member saying the price target seems inside, so there seems to be a little bit of discord within the boj but the broader message seems to be that the price target needs to be achieved.

haidi: these are some of the stocks we will be watching when trade opens in korea, japan, australia in or minutes time. qantas is front and center again. management preparing to face the australian senate inquiry on wednesday and there are signs that shareholders are starting to lose patience with the first rating being put through. casino operator star entertainment completing institutional placement of non-retired -- and were watching luxury goods that could follow overseas piers, cutting their 2024 profit forecast. keep your eyes on pacific and xhosa as well. much 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

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shery: this is "daybreak: asia."

we are counting down to the major market opens. u.s. stocks fell to the lowest level since june. consumer confidence slumping to a four-month low as we head towards what might be an inevitable government shutdown. haidi: so many crosscurrents at the moment with that return of volatility, what we're watching in the markets. we are getting that resilience in the u.s. dollar. closing the highest since december. what are you watching into the market open? >> you do have the dollar strength with that shut down risk coming through and that rate differential and focus between the boj and the fed. you've also got the comments coming through from japanese government officials. let's take a look at the open for japan, south korea and australia. taking a look at what tsuzuki said, japan's finance minister, telling people that he is

watching fx with a strong sense of urgency. in terms of the market reaction because it's not the first time we've heard jawboning even this week from tsuzuki, we have not seen too much of a reaction just yet for japanese yen, still holding at the 149 level, nothing to stop it in its tracks either given as well that you still have the dovish boj messaging coming through, reiterated or the july minutes. with that had those dropping as well. essentially many boj members saying the price target that sustained 2% inflation is not insight just yet. also some boj members are saying as well you need greater yield govern control flexibility to respond to the risk. that is the state of play as we got trading underway here. forecast treasuries, also coming online -- for cash treasuries, also coming online, fairly steady. stocks you can see bearing the brunt of that move high-end

treasury yields. a firmer dollar as well. five straight sessions higher for the dollar gauge. the nikkei 225 down 1% as we got trading underway. take a look at what's happening in korea. in the session yesterday we saw noticeable losses coming through in le korean won, now trading around the november low against the greenback as we got underway. for their losses coming through in the session this morning. tech stocks, want to be paying particular attention to because we are also seeing the s&p 500 i.t. index losing 10%, entering correction territory. the caused like as well, down more than 10% from the peak that it hit this year back in july. australia also coming online here, cpi data very much watched, due in the next hour, rising to 5.2% in august, compared to 4.9% angela -- very much and focus. -- 4.9% in july, very much and

focus. you can see brent crude firmer here. you can see tightening inventories in the supply market versus the bearish sentiment we are seeing across assets this morning. shery: our next guest remains neutral on equities, he says the market has been too aggressive in pricing at rate cuts. with us now is hartmut issel. given what we heard last week with a slew of central bankers very much focus on inflation, where do you invest in this environment? >> well, the short answer is high quality bonds. let me explain why -- because the equity market -- i would say we have some differences here. some markets, like em's, were not price for heroic roles in the first place.

you can place a bet with an equity markets. we know the u.s. market really dominated. the u.s. market is hard to reconcile. it is so expensive. it either tells us growth is going to be great or we are going to have massive rate cuts or likely both. that is unlikely. still a bit difficult/early for the u.s. market at this stage. whereas in terms of high grade and high quality bonds, this is the time to be -- we are talking potentially over 12 months or so, even double digit potential. we have not seen this kind of potential for a while. it would come along with -- especially in the u.s., that still has a reasonably resilient economy, but next year things are going to look different, things are going to look a lot slower, that is what comes. shery: has a recent rebound in energy prices play into your calculations? >> it also sort of does its

share to dampen the economy. also being cognizant that it's not really part of the core inflation picture. but nonetheless, if anything on the margin also speaks in favor of a soft ending economy also in the u.s., the outcome remains the same. probably a couple of months ago, our forecast on oil looked a bit outlandish, we are moving closer and closer to it. may be not a lot more upside from it. it also does its part to weaken things. shery: how are you feeling about -- haidi: how are you feeling about tech more broadly at the moment? are we saying higher for longer? there might be an outlook for pressure coming off a.i. and tech related stocks. >> yeah, we currently have a

neutral position on the tech sector. also i should say the broader ones -- not just narrowly defined as i.t. but what is generally considered tech, including the platforms, that is a space, not necessarily cheap, but naturally, you do get the extra also structural growth from the a.i. side. so i'd say fairly neutral overall but within a very clear focus on the next big thing that is ultimately a.i. we need to look for exposure there. haidi: when you take a look at china, valuations are pretty compelling, how do you gauge the risk/reward scenario there? >> hmm, we gauge a positive. interesting you mentioned the valuation, if you look at valuations, they have not changed much since the last

12 months, they are very low but they don't seem to pull a lot lower than they already have been, even before the opening happened, so that gives you an interesting base to discuss. from a cyclical point of view, i think it is clear, there are more measures coming in and you can debate the merits of each measure individually, but the sort of combination of -- the combined weight of these measures, including also the bit of a change from tech from previous quarters, bringing some leverage back into the equation also is now tolerable by the authority. so it is a matter of time also for the property market, we probably have already seen the bottom, -20%, -30%, etc. is unlikely to revisit another time -- it is unlikely to revisit that another time. the trajectory towards less negative growth would cause

investors to look at the valuation levels. shery: the expectation is golden week will spur some spending within china and also for them to actually travel overseas and continue to spend, but at the same time if we see some gains from consumer facing stocks, how sustainable are they without a proper sustainable rebound in the property sector given how much of the wealth is tied to it? >> i would agree, the property sector is key. what we need to see is slowly but surely stabilizing prices, possibly slightly up, also the volume, the activity, everything coming back, that is indeed -- everything else, i would agree, the market would be seen as more of a temporary rally, but more sustainably unit the property piece at least sort of stabilizing. but i think it's not a far short

given the measures that have already come in end of it doesn't work, soon enough we also think there could be more measures. haidi: always great to chat with you. let's get you back to belle for a look at the movers in australia. >> that's right, one in particular we are waiting to start trading here, that is star entertainment, the major casino operating in australia, we understand the company is really grappling with what has been a crackdown on criminal associations and money laundering, that is across the country's gambling industry but it certainly has been something to erode star's financial position. the company as a result is now seeking to raise as much as $1.2 billion in also dollars -- 1.2 billion aussie dollars. the equity price at $.60 a

share. reaction, quite a noticeable one at the start, 12% as we got trading underway, that is certainly one-stop we will be watching throughout the day. star, looking to raise 1.2 billion aussie dollars through a combination of equity and debt. part of that this morning, equity raising for 750 million aussie dollars, priced at 60 aussie cents a share. let's change on and take a look at what else we are seeing in the session today. we do have the luxury stocks in japan and korea in focus as we got underway, with these markets, 10 minutes into the session now. we had morgan stanley cutting their sector forecasts for luxury for 2024, so they are seeing demand really starting to cool my 2% to 5%. why that is interesting is because we have been talking a lot about it this morning -- and has been that saving -- it has been the savings really being eroded and consumers

coming under pressure around the world. haidi: still ahead, we will be speaking to google's chief sustainability officer on using tech and ai to tackle climate change. and more on the tesla eu subsidies investigation, ahead. this is bloomberg. ♪

shery: a new bloomberg survey of economists suggests that china will just about meet its economic growth target of around 5% for this year. for more let's bring in our chief asian economist. we have seen these downgrades

coming from economists for quite some time given of course the challenges the economy faces but at the same time we have seen so many new measures to support the economy coming from policymakers. what are the chances now we will see that about 5% growth? >> this month's reaction, as a result of the upside surprise in august, we see higher chance of china meeting the target. if you look at the production date and consumption date, they are all stronger than expected gdp tracker suggests -- stronger-than-expected. our gdp tracker suggests stronger growth the third quarter based on the average july and august. that is already higher than july. in terms of our forecast, we tend to look at a range of models and we can provide a

greater forecast in terms of distribution pyramid our central forecast has always been about 5%. -- above 5%. but as a result of the august upside surprise, we see the probability of the economy undershooting 5% -- we see it is undershooting, exploding 20% chance of undershooting, compared to july's about 30%. haidi: when you take a look at the drivers of the slowdown and the risks, how many are cyclical and how many are structural? how does that feed into what policymakers can do about it? >> i think the question is very important. we do see some cyclical factors, for example tourism, is not

going to be as strong as during the summer months, as a driver. and then the exports, the slow down in exports, because the group economy is slowing down. those you can potentially think of as cyclical factors. but there are certainly some long-term drags. the property market is yet to stabilize despite all the support measures. maybe tv -- maybe there's a minor pick up in some cities but overall the property market has not stabilized. one thing we have been talking about again and again is the confidence, and there is a risk of that turning into a longer term drag for growth. that is a concern and we do see at this point downside risks are greater for the economy, and we

express it and articulate the greater downside risk. haidi: our chief asian economist there on her assessment of the chinese economy as we get into the key test of golden week at the end of this week. you can get around above the stories you need to go to get your day going on today's addition of "daybreak," bloomberg subscribers can find that at dayb on your terminal. it is also available on the mobile on the bloomberg anywhere app. you can customize the settings so you get the news on the industries and assets that you care about. this is bloomberg. ♪

when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh haidi: -- shery: take a look at how tesla

suppliers are trading at the moment across asia, we are seeing broadside pressure and has led losing ground in the new york session. sources telling bloomberg that it was a company that likely benefited from chinese subsidies, we have the european union anti-subsidy probe into chinese electric vehicles to determine the degree to which china has subsidized tesla and domestic manufacturers. let's discuss this with su keenan in new york. what exactly is the eu looking at right now? >> they are looking at the subsidies. their focus on tesla is obvious, not only is it a high-profile company but they export more cars out of china to europe than any of their rivals, so the focus is to really ultimately level the playing field between the chinese-based exporters and european carmakers.

bloomberg has learned the broke will determine -- the probe will determine to what degree china has subsidized has land other manufacturers. -- tesla and other many factors. to level the playing field. there's a possibility that the investigation might lead to levies, offsetting the subsidies, and tariffs and levies can be quite large, as you see right there. tesla traded down at the open. by about 2%. it took a little bit of a knick there. managed to ease some of those losses. neo and byd, too. year-to-date gains, these manufacturers, doing well. tesla shares have doubled here today. the european commission president as you may recall made the comments public in mid-september indicating it is a potential to reshape the competitive dynamics within the

world's second-largest maybe market right after china, and there's a lot at stake for both sides, the european block is a lucrative market for chinese ev exporters. and the investigation has tread carefully here, it could also escalate trade tensions between the eu and china, potentially impacting other sectors and businesses. haidi: when you look at this probe, you don't necessarily expect tesla to be front and center but they have gotten a few breaks from opening those china -- perks from opening those chinese factories. >> they got a special blessing if you will from the state to wholly own their facilities, and set up being forced to partner with a local based venture partner. in addition they have got tax breaks, cheap loans, other benefits -- and this is the kind of thing that the eu will be looking at, they want to find out what kind of special privileges they might have. and along the supply chain, if

they are getting any tax breaks or price breaks, for batteries for example. the outcome of the eu's investigation could impact tesla's operations and sales in europe significantly. in the seven months of the year, tesla sold almost 94,000 china made electric vehicles in western europe. there you see elon musk addressing workers in the shanghai facility, though sales account for almost half of tesla's total deliveries in the region. any countermeasure from the eu is seen as possibly denting tesla's market presence in the region. so this probe will be closely watched as it progresses. we will continue to bring you updates. haidi: su keenan there with the latest. the u.s. ftc is suing amazon in a long anticipated antitrust case, accusing the company of monopolizing online marketplace services, but the commission chair stopped short of explicitly calling for a breakup of the e-commerce giant, as she

told us more about the allegations. >> this is a case about a set of unlawful tactics that amazon has used to maintain as monopolies, we note in the complaint both a set of anti-discounting tactics that amazon uses to punish and a seller or retailer that dares to discount, and ultimately these sets of tactics deter sellers and retailers from lowering prices and closes off an entire dimension of price competition, the other set of tactics we know is a coercive scheme that amazon uses to effectively require sellers use its fulfillment service, and this in turn ends up stunting the development of independent fulfillment providers, and ultimately also deprives actual and potential rivals of scale, and that is the core theme here, these are a set of tactics, but ultimately amazon has pursued them to deprive actual and potential competitors of the ability to

gain the scale and momentum needed to effectively compete online, and having achieved and protected as monopoly power, our complaint details how amazon is now exploiting that monopoly power in ways that harm customers, both the sellers, the tens of millions of american families that use amazon to do their shopping, but also -- sorry, both the shoppers but also the sellers, the hundreds of thousands of sellers that use amazon to access those shoppers. and that's done that proactively raising prices. amazon takes close to one out of every two dollars from sellers that use its platform. it also has degraded its service by adding a whole set of pay to play ads that make it more difficult for consumers to find what they are looking for and steers them to higher priced products. i really encourage everybody to read the complaint. it details all this conduct in great detail. and we are really looking forward to moving forward with it.

> one of the things in the complaint -- >> one of the things in this complaint is that you are seeking structural relief in this case, which implies a breakup. what would that look like? >> at this stage, the complaint's really focused on the issue of liability. we lay out a scheme that we believe violates the u.s. antitrust laws. what we note in the complaint is that these different aspects of amazon's shceme -- scheme have an aggregated effect. the net exclusionary effective amazon's conduct is quite significant. ultimately we will want to make sure that any remedy is halting the illegal conduct, preventing a recurrence, and ensuring that amazon is not able to profit and benefit from its illegal behavior. right now we are squarely focused on the question of liability but when we get to the issue of remedy, those are going to be the principles we will be focused on. haidi: shery: the ftc chair

speaking with bloomberg's peggy collins in washington. take a look at how european futures are coming online. we had a down day for european stocks, sinking to the lowest since july. we have lots of concerns and challenges whether it is the chinese property sector, higher for longer -- the higher for longer narrative when it comes to central banks, we had a lot of pressure when it came to luxury stocks across europe, given of course the concerns over china as well. take a look at how currencies are trading at the moment, because of course another point of pressure for some of these markets has been the strength of the u.s. dollar. you can see how the swiss franc has taken a beating, right now we are seeing it the 9160 level -- .90 160 level. six sessions of losses against the u.s. on the which would make it the longest losing streak since 1975. remember the swiss national banks halted monetary tightening last week, so that has led

traders to perhaps borrow in fra ncs and invest in higher-yielding currencies. the japanese yen, very close to that 150 level that traders have seen is that intervention potential level. we have heard from the finance minister again today talking about very closely monitoring those moves. coming up next, alibaba's logistics arm files for its hong kong ipo, potentially making it one of the tech giant's first units to go public. we have more details, next. this is bloomberg. ♪

haidi: this is david "bloomberg markets: asia."

annabelle: i am annabelle droulers with a check of the markets 30 minutes into the session for sydney, seoul and tokyo. so far those moves are more muted than we had at the start of the week. the bond space is fairly flat as we get underway. still more noticeable moves coming through so far in the currency space. watching the korean won, we are sliding to the weakest level since november of last year. it is that story of king dollar still very much in focus, up five straight sessions. what else are we seeing in the session? still that focus on the japanese yen,, the currency trading above the 149 level as we get underway. we heard earlier from the finance minister suzuki, once again saying he is watching the moves in fx markets with a strong sense of urgency. something we have heard from him even throughout the course of this week. the question is whether traders pay too much attention. in the equities picture, it is looking for losses. half an hour into the session for sydney, seoul and tokyo.

on this imf function, every single sector so far, is in the red, led by industrials, utilities and consumer discretionary. given we had luxury stocks coming under pressure. morgan stanley among those cutting their forecasts for the course of 2024. we are starting to see the savings level starting to evaporate. one other stock very much in focus as well, star entertainment. this is the australian casino giant. that stock is slipping, starting to moderate its losses. still down 8%, dropping 12% as we came online at the top of the hour. that company seeking to raise one point 2 billion aussie dollars through an equity placement and that is being priced at a discount. sherry, investors not have too happy with this equity investment this morning.

shery: another move we are watching and markets, alibaba's logistics arm has filed for an ipo in hong kong. the ipo could raise $3 billion or more. joining us is the senior consumer analyst catherine lim. this could be one of the first alibaba units to actually go public. what should we be watching out for? >> i guess from the 666-page prospectus they filed last night, have to admit i am not through with it yet, but this is an interesting ipo given that there are a number of logistics ipo's pending listings out there. we talking about the second potential living from the indonesian base jmt. there is an ipo frenzy going on amongst logistics companies. we will see an expansion of the

overall capacity, to put it in simple terms. the landscape going into 2024, we can expect logistics costs, et cetera, with economics of scale operating efficiencies, i think this will be beneficial for not just the list of companies, but for their customers as well. haidi: you talk about cr now -- cainiao, there has been weakness in consumer economies. does this give more confidence to the likes of the companies when it comes to fundraising, depending on how this plays out. catherine: that is good question. clearly these companies, cainiao in particular, they are starting to expand into the last-mail delivery or to get to

bigger market share in that area itself. there are variations, differences in where these companies are positioned. cainiao, jg logistics, as well as jnt. but again, the underlying demand for the deliveries, as well as the efficiency, still remains very strong based on what we are seeing from big businesses, as well as consumers on the ground. so it will be interesting to actually see where some of these proceeds are going to be used going into 2024. haidi: bloomberg intelligence senior consumer analyst catherine lim. coming up next, new research, shows this year is set to be the hottest on record and the mercury is set to go higher in 2024. . we take a closer look, next. this is bloomberg. ♪

shery: bloomberg intelligence is projecting that this year it may be the hottest on record, with 2024 set to be even worse due to the likelihood of it in more extreme weather events. for more, let's bring in esg

analyst michelle living. michelle, this summer was really . how much worse, really get? michelle: we do see a high chance for 2024 to become warmer than 2023. that is because of the el niño phenomenon in the indo-pacific. we have seen the impact kicking in this year already, with july being the hottest month ever, alongside with at least eight climate -- 10 climate records broken this summer. so next year could be even worse, and is supporting evidence from a record-breaking sea surface temperature, the unprecedented extent of shrinking of polar ice. it is hitting record levels because the ocean absorbs more than 90% of the excess heat cost, which means, the more greenhouse gases we emit, the harder the oceans could get. on the other hand, antarctica

is knocking at a rate of 100 50 billion tons of ice per year and greenland is also losing 200 70 billion tons a year. so that is underscoring the urgency for us to combat climate change. haidi: which industries or sectors do you think will be most directly or affected? michelle: four industries could be more directly hit, including insurance, energy, hospitality, as well as agriculture. for the order refinery, we see the high temperature actually would impact the efficiency and lower production rates. it could also be affected by the drought at major canals such as, recently, the panama canal. for insurance, the impact would be more obvious given

that claims settlements which have exceeded $600 billion per year. for agriculture, the severe dry weather in asia also sent prices of rice in august to the highest since 2008. last but not least, hospitality. many hotel locations are highly exposed to extreme weather such as droughts. and floods. analysis found that one-third of u.s. hotels are in coastal areas, and 70% of new estate hospitality clients report at least 9% increase in insurance premiums in one year. shery: of all the terrible consequences of climate change, last night i was reading about how climate change is making the world harder so you have more air pockets in daytime flying. and you know how much i hate flying, so that is another thing.

[laughter] i was thinking, my gosh, you don't even think about these things! michelle, is the world even doing enough to know order to fight climate change? michelle: sorry, not enough. we could do so much more. we saw that actually, the current pledges by the g20 countries, they can only cut global emissions by 20% by 2030. the paris agreement target requires a 3% to 40% cut according to the u.n. having said that, we see a huge variance across regions. many countries, particularly those in the e.u. and north america have actually already peaked emissions as far back as 1990. . but some of the emerging countries are highly a meeting nations, nations such as china, india and indonesia which together, account for more than 36% of global emissions. they have either not reached peak emissions yet, or have not

committed to any peak emissions yet. so we hope the climate declaration at the recent g20 summit will pave the way for more aggressive or ambitious targets to be set at the cop28 later this year. haidi: the alternative is really pretty depressing. pretty frightening. michelle leung of bloomberg intelligence, esg analyst. let's get back to the market quite a bit of downside. bearish sentiment returning. volatility, liv-ex -- the vix gauge spiking as well. tokyo bearing the brunt of those losses, down over 1%, but really across-the-board, slumping following the wall street fashion nova. investors are contemplating the protracted period of higher interest rates. you can see firmly in the red are the benchmarks across the

region, after we saw the s&p 500, both that and the nasdaq 100, slumping about 1.5%. that vix index at the highest since late may. u.s. consumer confidence falling to the four-month low. u.s. equity futures and also for australia, we are looking forward to the key cpi output. it could point to vulnerability when it comes to australians in the bond market, if that number comes in harder than expected. and of course, the energy element is going to be key. the unlocking capital for sustainability event kicks off in singapore later this week, bringing together leaders in finance, business and government to discuss sustainable development. our next guest is a keynote speaker. she will be discussing how ai and technology can play key roles in climate innovation. joining us from singapore is kate brandt, chief sustainability officer at

google. she also worked on climate energy in the white house and the pentagon during the obama administration. it is wonderful to have you with us. we were just speaking to our bloomberg intelligence esg analyst, talking about the frightful consequences of the fact that we are not seeing, particularly across the g20, enough policy action to combat extreme weather events caused by climate change and really accelerating the energy transition. . you say in your role that the data is there. that the research is there. we know what we have to do. are you optimistic that implementation is going to catch up? kate: yes, i am optimistic. we saw a recent report commissioned by deloitte that found that the technology we need to address climate change already exists, but we need to cascade that technology globally to economies around the world. certainly, we are thinking about this at google.

looking at how can we put the power of ai in the hands of first responders with flooding, for example, we can use it to predict flooding seven days in advance. that technology is now available in india, cambodia, thailand, vietnam, and 80 countries around the world. so we are looking at the power of technology to enable people to adapt to the impacts they are already facing. haidi: investors if l is one of the many, right, full of returns. how do you make a compelling investment case to be able to track the enormous amounts of investments we will need for climate solutions and the energy transition? kate: i think what we increasingly see is, individuals are very interested in how they can live more sustainably. if you look at google trends data, we see searches are at all-time highs for things like

electric vehicles, solar, recycling. so, businesses need to take notice of that. i think we are increasingly seeing opportunities to build solutions from a sustainability perspective. we definitely see that at google. for instance, in google maps, which billions of people around the world use every day, we have a feature that is available in the u.s., europe and coming to other markets in the future called "eco-friendly routing," where we show people what is the most fuel-efficient route and the eta. this is saving people money and giving them sustainability information. so i think we are increasingly seeing a push from people who want to live more sustainably. shery: kate, what is google doing as a company in order to become carbon free? we know your footprint actually increased last year. kate: at google, we have been deeply committed to sustainability in our operations and our value chain since our

founding 25 years ago. today what we are focused on is achieving net-zero at first our operations and value chain by 2030. we want to empower our offices and data centers around the world, including places like singapore and taiwan, with carbon free energy. we are making progress. last year we reached about 64 percent carbon free energy for our global operations, and we will keep pushing. shery: shery: do you see a difference in the way technologies used to combat climate change between regions? how is asia using technology differently from other parts of the world? kate: i think we certainly see a disproportionate impact. as i was mentioning a moment ago, around climate adaptation and the importance of cutting emissions at the hands of government agencies. providing sos alerts to citizens for things like writing.

we also see a huge opportunity to support innovation. one example is a sustainability seed fund that we have promoted. it provides grant to nonprofits in the asia-pacific region that are developing solutions that require some monetary support to realize the solutions. we are currently supporting 13 nonprofit organizations who are developing technology-based solutions that are relevant for the region, from water preservation, air quality. we see this as a great way to support the broader innovation ecosystem. shery: kate brandt, chief sustainability officer at google. coming up, want us looking to turn around its tarnished reputation as top, executives prepare for a grilling and a senate inquiry. the preview, next. this is bloomberg. ♪

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i sold that. and you can manage it all in one place. i built this. and it was easy, with a partner that puts you first. godaddy. haidi: australian senate inquiry to qantas is underway with top management expected to face to have questions. it comes as the airline battles to improve its reputation. bloomberg business news reporter angus whitley joins us now. you have a senate hearing.

very notable absentee in terms of who will not be there. no matter where you look, there is pressure coming down, including within industry. angus: qantas is taking pressure from all sides. this senate inquiry today is due to the rejection of more flights operated by qatar airways into australia, but really, it has turned into an investigation into qantas itself. how much power did they exert on that decision, how much influence it has on the government. critically all the bad news has been happening to qantas the last few months, really since may. it is now surfacing in this inquiry. a few notable absentees is former chief executive alan joyce, he is overseas and the panel has no power to summon him where he is overseas. but we will get the new chief executive vanessa hudson, fronting the panel itself, and that will be interesting to see how much pressure there will be. shery: is the chairman in the

line of fire? we saw alan joyce retiring early because of all of these issues at qantas. could we see more changes at the top? angus: i wouldn't rule it out. although alan joyce's early retirement was meant to be a circuit breaker, meant to relieve some of the pressure on qantas, what it has actually done is just redirected towards the chairman, richard gorder who was a big defender of alan joyce, every time joyce came under pressure for some of the decisions he made. richard verily backed the chief executive alan joyce, and at one point said he was the best ceo in the country. what we have had in recent days is the senior pilot in an unprecedented move, called for him to resign. so it's not clear whether he will buckle. he said he is staying put for

the moment so long as he has the confidence of shareholders. it'll be interesting to see if he can hold that until the agm in november. haidi: one of their secret weapons has always been that loyalty of the analyst community and investors, right, given alan joyce managed to restructure and brutally and successfully turn it around. is that starting to fade, that celebrating, are we starting to see the satisfaction from that community? angus: yes, the argument has been that qantas has served its shareholders and investors more than the customer. perhaps it got that balance wrong and undoubtedly, shareholders have been, i guess, showered with rewards at various times in joyce's tenure. but yesterday we saw the first sour rating in a year,. most of the analyst with either

a hold or buy rating. i did see one cell rating yesterday. at the , i could s -- i suppose you could argue that there's confidence to return to shareholders and investors is showing touches of fragility. but it is still an earnings machine, it controls 60% of the market. i think there is one cell rating out of 17 ratings in the market, so it still has the confidence of analysts. shery: bloomberg business reporter angus whitley joining us from sydney. we continue to see broad risk of across asian markets. not surprising given we have seen this global selloff, we are talking about the msci all country world index now for a nine session of losses. this would be the longest losing streak in the past decade, since 2011. of course, we start this massive repositioning across markets especially in the u.s..

because now, cash is earning more than equities. we are talking six month treasury bills yielding what, 5.5 percent, that would be the highest since 2000 one. compare it to the s&p 500's earnings yield of 4.7%, where do you go? we continue to watch this change in the markets across the board. haidi: and so much of that is what happened in your part of the world in that, which is a big pickup when it comes to volatility, right, taking a look at the vix where we saw that gauge hitting the highest level since may after the u.s. consumer confidence number failed to that four-month low. . video hitting home perhaps the reality that we will be here at higher rates for longer. that is one to watch. that was kickoff when it comes to the risk-off mode across assets, and of course, in addition to that, it is that

longer-term story over the chinese slowdown. it will be a big test as we get into golden week as to how strong the consumer is in that major economy. take a look at the stocks we are watching at the moment ahead of the opening in hong kong, china and taiwan. we know the opening picture is unlikely to be positive. cainiao, alibaba's logistics arm, has filed for an ipo, making it potentially one of the three e-commerce giant process units to go public. and chinese built cars becoming a key target of the e.u.'s anti-subsidy probe. luxury stocks also on the radar. morgan stanley cutting euro 2024 forecast for profitability in the sector. that is it for "daybreak: asia." our markets coverage continues. no. he's making sure his portfolio and retirement plans work in harmony. they want to adopt a child and build a new home. so they're talking numbers with their merrill adviser. she's not researching her next role.

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