>> very good morning. welcome to "bloomberg daybreak: australia." annabelle: we are counting down to asia's major market open. shery: good evening.

the top stories this hour -- wall street's fear gauge wres up, sending stocks to a four-month low. signs of official yen intervention after the currency is ranked 150 to the dollar. haidi: republican hardliners revolt, dumping maccarthy as house speaker and sending a fractious congress into further disarray. shery: plus new zealand's central bank expected to deliver a hawkish hold trying to capably -- keep a lid on inflation expectations. haidi: we do have breaking news off the top of the hour, the australian pmi numbers, the judo composite number, taking a little bit higher in the september final reading, at 51.5 from 50.2 in the prior indicator. we saw the september inal reading when it comes to the services comont, also taking higher, 51.8 from 50.5. a little bit more firm into

expansionary territory. unlikely to really move the needle when it comes to with the rba's doing given we saw the central bank keeping the key re unchanged with the tightening bias last tuesday really gauging the impact of already what we've seen as four percentage points of hikes. shery: take a look at how futures are coming online. a little bit of a mixed picture. not a lot of movement after we saw the s&p 500 today struggle and fall almost every sector was in the red. there was a lot of volatility. we had the treasury wrote -- route deepening with multiyear highs, the vix, at one point climbing above the 20 level to the highest in 16 months and settling a fraction below that. it was really about not only more hawkish commentary coming out of fed officials today but really the data that sent yields, the 10 year yield to the highest level since 2007, the 30 year yield also at the highest level since 2007.

that narrative, that we are going to see the fed higher for longer, given the data, take a look at u.s. job openings, it toped all -- topped all four for the month of august. 9.6 one million -- 9.61 one million job openings. we are talking about resilient data. layoffs are still low and a lot of the job gains, coming in the professional and businesses services sector. just ahead of the payrolls numbers coming out on friday, which of course everybody will be on the watch out for to see if the labor market starts to cool and what that means for the fed. haidi: fractious politics domestically also at play. we mentioned republican kevin mccarthy has been toppled as u.s. house speaker, the first of

history, by dissidents within his own party and a tumultuous nine months in the job. let's get more details on the historic move with jerry schneider. what led to him being voted -- with judy schneider. what led to him being voted out? he's been in the role for really not that long. >> a little over nine months, as you said. the way that he became speaker was fractious, too, it took 15 rounds of votes. he could not get over the threshold. to get tv -- to get there, he had to make deals that ultimately led to the demise as speaker. saying any one lawmaker could basically vote to vacate and have a motion to vacate -- could bring about a motion to vacate and there would have to be a vote on the house floor with that. that is just what happened today and he did not get enough votes, 216 members, all the democrats

who voted and some of the republicans voted to vacate, which means he loses his speakership. 210 voted for him but it was not enough. with a very slim majority in the house, the band of dissidents in his own party make sure that he would not be speaker anymore and the democrats did not come to his rescue. some things including basically moving forward with some impeachment hearings for president biden over some of the things -- over allegations about his son, hunter biden, really angered democrats. they also didn't like it, the way this played out recently. they didn't feel they were respected enough. they didn't feel they could trust speaker so they were not rushing to his rescue. shery: to be fair, he could technically run again immediately. given the 15 rounds of voting you mentioned, who is more likely to succeed him?

>> he could, he certainly could, and he may. we have not heard from him yet. he left the chamber silently. but if he -- but it would be very hard for him to become speaker. those democrats again are not likely to change their mds. it would be hard to change the minds of the people who voted against him. there are some other names. right now patrick mchenry, the head of the finacil services committee, a very powerful committee in the house, he is the interim speaker and has said he does not want thjob. we have heard the name of steve scalise, tom webber, who is a whip. who is going to satisfy that wing of the party? mccary made deals with them to get the speakership and likely someone else would have to, too, they don't seem to like he way that the house was run under kevin mcathy and in the two previous speakers of the house,

two previous republican speakers before him, they also were not ousted in such a dramatic fashion but they left. john resigned and paul did not run again. they chose not to do this given the fractious caucus. haidi: what could be some of the broader political and even financial market and economic applications? moody is the last of the rating agencies to keep the top grade for the u.s. they recently warned about this political dysfunction that is aptly. >> the uncertainty of something the markets are looking at. they did pass that spending bill to basically fund the government for a short period until november 17th, that was passed this weekend with democrats going in with republicans. something the wing of the caucus did not like -- that speaker mccarthy relied on some democratic votes. but that runs out november 17.

if there's not much action in the house, we are going to be there very soon. there's also ukraine funding which was not and that bill. that'll be a contentious issue. and these broader economic issues the house is not taking up. it is also an election year next year. the whole house of represented runs again. if there is no resolution to all this, straight only the democrats are hoping this makes the republicans look bad and theya -- they are in disarray and that could help them retake control of the house of reps. it is still 14 months, 13 months until then, so we will see, but the larger issue right now, the most significant pressing issue is november 17th, the deadline when they run out of money again. shery: bloomberg's political director, jodi schneider there.

let's see how we are setting up for the asian session. it may be a challenging day. annabelle: that's right. you've got political dysfunction, but the big theme still remains the fed and central banks generally, and its narrative, higher for longer, is still the story here. for equities, we are pointing ahead to and move to the downside in aussie stocks. we are tracking the moves in the bond space. the aussie tenure yesterday reaching its highest since 2011, still continuing to move higher. kiwi bonds as well. kiwi assets broadly. we have the rbnz physician in a moment here -- decision in a moment here. they could possibly leave the door open to a further hike. the move in treasuries, the japanese yen, if you change on now to hit the 150 level against the greenback.

this is typically when we watch for a sign of intervention from officials. you saw the sharp move higher in the dollar against the japanese currency. what drove that was the japanese government intervention. could there be something else aptly? we will be discussing the chance. perhaps to do with options positioning. shery: selling the dollar at the 150 level could be one of the reasons but we are also thinking intervention chatter is growing. let's get more with our . isabel -- with our across asset reporter, isabel. they have warned against these currency fluctuations. why is that 150 level so important? >> it really is just a psychological level. around this time last year, the japanese government first intervened, the first time in 24 years.

this is a level a lot of analysts are watching. this could just be a standing order that funds are firing strategies -- but some are speculating there might be intervention. they are saying that around this time last year, the japanese government intervened. some are also saying, not really. when they intervened last year, it did not happen during u.s. hours. some said if they did intervene, they would not be so happy now, because it bounced back so fast. it is not the first time that this happens. shery: the says it -- haidi: this is it, the problem of going up against a hawkish fed. is there much to game in intervention in terms of how costly it could be? >> intervention is very dangerous. not dangerous, it is something people should be cautious about. the finance minister said they are ready to watch their own standby but they are going to

intervene not based on currency levels but based on volatility because any excessive moves in the currency market is definitely dangerous. this is really a story about the fed's higher for longer narrative and that is why we are seeing the bloomberg spot dollar index climbed to the highest since november. because of that we also have a weaker yen, and that is going to make imports more expensive for japan and of course more things. this is definitely a space to watch but it does not help the fed is standing pat on attire for longer narrative. shery: bloomberg's across asset reporter there. we will be watching kiwi assets today with the central bank expected to keep interest rates on hold later. we are 10 days out from general election. tracy joins us from wellington. there are inflationary risks starting to pick up. energy prices affecting all central banks, not just new zealand.

are we expecting a hold today, albeit a hawkish one? >> we are expecting a hawkish hold. at the very least, the banks will say that rates must stay restrictive for the foreseeable future to make sure markets don't start pricing any rate cuts into the sort of positioning. you are right, there is inflation pressure brewing, but again with the election just around the corner for us, it's very unlikely the central bank will want to go out and make a bold called at this point. we are expecting to read the language very carefully, to see what the signals are. shery: at the start of this global tightening cycle, the central bank's were reluctant to pause rate hikes just to resume them again but we have seen a few central banks already do that, is not a possibility for the rbnz here, too? >> it is a possibility.

markets are pricing about a 50-50 call on whether there will be another quarter-point rate rise in november, the final review of the year. there's is a small minority of economists calling for that. there are issues like strong immigration and the rising housing market, which may fan a bit of domestic inflation. on the other hand, consumer spending is seen as quite weak over the next 12 months. they might be prepared to wait and see what happens. shery: bloomberg's tracy weathers with a preview of the rbnz decision today. sam bankman-fried's fraud trial begins fear that an update -- begins. an update, later this hour. and why the bond rout is overdone and he expects --

and rob williams with why the bond rout is overdone and he expects a recession next year. this is bloomberg. ♪ e. endless hardie® siding colors. textures and styles. it's possible. with james hardie™.

>> i'm very optimistic about the u.s. economic outlook. short-term inflation is coming down in the context of an

extremely strong labor market. we are now gauging a very substantial program of investments to strengthen our economy. shery: the u.s. treasury secretary there. our next guest says the bonds selloff is overdone. let's discuss where the opportunities are with rob williams, the managing partner and chief investment strategist at sage advisory. you think the fed has pretty much done its job at this point. do you think there is further to go in the momentum we see in the bond market? >> you know, i mean, these things take a life of their own. there could be an upside to rates in the near term. i think the correction at this point is done. i think the markets have struggled with the fact that stronger data has forced the fed to adjust for guidance. there is no reason for them to hike anymore. the forward guidance is

doing the job for them. longer was not a unit of time. they to come to terms with what longer meant. you are getting the reaction in the rate market and equity market. i'm not sure if it is overreaction yet. the soft landing narrative and data resilience didn't match what the fed had laid out six to nine months ago for easing, we had 200 basis points of easing in 2024 price then back in april. that is a big adjustment. now you've got two possible cuts in 2024. markets and rates had to come to terms with that. but i think it is overdone. fair value further on is that we are going to cut rates eventually in 2024 and into 2025. as the market rules forward, they will realize, in 2024,

i need to start pricing in those cuts that will come later in the year. we think the growth revisions are already baked in. a lot of positivity has been baked into upside growth potential over the last month. and so, the trajectory's still down overall. i think it's going to be harder for the economy to surprise the upside going forward. remember forward guidance follows data. the data has been stronger. forward guidance and rates have gone up. if data starts weakening and disappointing, rates go back down. i think ultimately rates are kept -- capped. the weakness is down the road in the economy. haidi: does that mean you are defensive when it comes to equity positioning? >> we are defensive. in fact, it doesn't sound -- nothing sounds great this week. when you watch rates go up in a short time and you are not accruing income that quickly,

fixed income doesn't look that great. but over the medium term, i would say bonds over stocks in this market. time and carrry -- time and carry is to your advantage. with fields over 5%, you are carrying yield of almost half a percent a month, that is going to smooth out a lot of problems over the medium term. think about the scenarios that we face. the economy either re-accelerates intoan expansion which is the lowest probability and the fed acts to hike multiple times or they are done hiking and we got o sort of soft dish landing and rates stay hi which is good for bonds, or the economy weakens more than we think. the consumer finally runs out of gas and we get some weakening and some f hose cuts get priced back in. two of those scenarios are positive for bonds. i think the one we re-accelerate is probably the lowest

probability, duration is kind of your hedge, bonds are your hedge against an economy that doesn't deliver on kind of this optimistic view we have built-in in equity drawdown. shery: talk to me about the u.s. consumer at a time when oil prices are high and there is an extra tax for the american consumer and we have those student loan repayments also happening mostly this month. how healthy is the american consumer? >> look, they are healthy and the sense they built up a tremendous cushion and we are not sure when the cushion will run dry. they have done revisions to the savings rate and data recently that kind of showed may be we had even more cushion built up than we thought. but they are getting assaulted from all sides. the inflation higher rate is going to take their toll. it's taking longer because they built up a nice cushion. remember resilience in the economy cuts both ways. the longer they have to keep rates higher to metal

inflation and prices -- battle inflation and prices are still high increases the medium term risk for the economy and for the consumer. the fed may be focused on core inflation but energy prices, food prices are the things that do impact consumer spending. airfares, a lot of the components that are going up that the fed is not bank -- is not paying close attention to is impacting the consumer. we think it is a slow erosion of consumer spending. all cycles don't have to end in a flash like they did in 2001, 2008, they can erode slowly and that is what we are having here. i think we will still get a soft recession it's just been pushed back a little bit sometime in the first half of 2024. shery: at least the u.s. dollar seems to be going further for people these days given its strength against other currencies as well. do you have a way to play that especially when we have seen such incredible weakness with the japanese yen and the euro as

well? >> look, we have been favorable. u.s. stocks are still the best game in town even though their valuations are higher. you can hedge certain currencies. etf's have currency hedge vehicles if you were in japan you've gotten a nice return, so there's a lot of things you can do. what you bring up a good point. a strong dollar -- but you bring up a good point. you've seen the strong dollar usually traditionally into a risk off. a lot of the big picture factors like a strong dollar and the inverted curve are still telling you that we may have more to go in the equity market and i think the rate markets are close to being done by the equity markets have not felt the real pain of an economic slowdown correction. they are just feeling the pain of a rate related correction right now. they have not felt the pain of an actual risk off due to economic slowdown.

that is the next leg. we have not seen credit spreads, they are starting to crack a little bit now. your signal for the equity market when the real trouble starts is when you start to see spreads gapping out a little bit in the credit market. shery: more risks ahead. rob williams, good to have you with us. you can get a roundup of all the stories you need to know to get your day going on today's edition of "daybreak." terminal subscribers can find that on dayb. you can customize the settings so you get the news on the indues and assets that you care about. this is bloomberg. ♪

shery: take a look at australia and new zealand bondswe really see treasuries perhaps

looking pretty oversold. taking a look at u.s. easuries, 10 years and up, falling to the le in nine years. taking a look at the momentum gauge, eig oversold conditns we are seeing much of that picture when it omes to everything from the short end of t three year to the 10 year across australia and new zealand. we really saw the bond relief rally pretty quickly after keeping the key rate unchanged with that tighten loving this pay bump in our allowance. wonder where mom and dad got the extra money? maybe they won the lottery? maybe they inherited a fortune? maybe buried treasure? maybe it fell off a truck? maybe they switched to xfinity mobile on the most reliable 5g network. for a limited time, buy one line of unlimited, get one free for a year. now i can buy that electric scooter! i'm starting a private-equity fund that specializes in midcap. you do you. switch to xfinity mobile today.

>> cash now has a relatively attractive appeal. when you look at the expected returns for this moment, cash is a relatively attractive asset class out this moment -- at this moment. shery: ray dalio, speaking to bloomberg at the economic

forum. let's bring in annabelle, that is a question, why would you turn to stocks and risk when you have virtually risk-free assets or you can get better returns? annabelle: that's right, it is all about the equity risk premium. this is something we've heard from a lot of different strategies on wall street -- strategists on all street, like j morgan. they are talking about this low equity risk premium. what they are looking at is the correlation of the s&p 500 to real yields. we know of course that is deeply negative. what it signals perhaps is you are getting low returns from holding riskier assets like equities versus what you could get from holding something like cash, short dated securities, government bonds. in general. goldman sachs says it's going to become even more difficult for u.s. stocks to continue to digest fed rate rises in this environment. we should note they do not expect another fed rate hike

this year. haidi: is that the consensus? what are we looking at when it comes to bets on the fed? annabelle: taking a look at what the traders are pricing next year, around 50 basis points of cuts, but state street is seeing more than double this, around 100-200 basis points of reduction. why exactly they are saying this? a couple of factors -- slowing growth and the moves in inflation. they are saying essentially u.s. economic growth will slow to 1.1% by next year. inflation as well will be moderating to below 3%. these are positive outlooks for getting price pressures under control. state street is looking at the lagged effect of fed rate hikes. which takes 18 months, even longer to really be digested in the economy. shery: we do have the latest on ford, now saying it made a

comprehensive offer to 57,000 employees, as the uaw strike drags on. let's get more from bloomberg's su keenan. what do we know about this proposal? su: it is the seventh and strongest offer yet. they are offering record pay and benefits, they say. the ceo says it is an offer that is costly for the company but tbeleve protects its future and allows it to grow. increasing the wage to a record 20% without giving details on what the number would be. it also increases benefits like contributions to 401(k)'s and layoff prttion. that means no job losses due to the ev battery plants. that was a serious concern of the union. losing jobs as the nation moves

to electric vehicles. you are seeing the strikers continue to be on the picket line, going into the third week. the offer also includes a reference to new product commitments. the devil could be in the details. the ceo recently citicized the uaw as wanting to determine the way it runs battery plants before they have even been built. again, that is a sticking issue for a lot of these companies. ford said it remai to th -- open to the possibility of future ev plants. last week, we saw the issue of forward putting the construction of its michigan battery plant on hold. that drew fire from the union. there's been a lot of tensions. ford is hopeful in a lot of the language think that this breaks through the tensions, to

quote, ford said this latest salary proposal would put them among the top 20% of u.s. jobs" hourly and salary. shery: where do we go from here? >> is going to be a long slog, many say, because bloomberg has reported the union initially sought 40% pay increases and thy ave recently -- sources close to the negotiations said the union wants to emerge from the strike with at least a 30% pay raise. they believe that can be presented to other auto workers outside of the union and perhaps recruit more workers. that is what the uaw wanted even with a 20% pay raise. there is still a gap. sam bankman-fried -- stellantis has talked about making progress but there is still a gap. gm has also, all three automakers have said to provide

the union workers with the increase they asked for, it would effectively bankrupt their business. they have made clear this is a tough negotiation position. the uaw has been very savvy trying to, according to one of their mottos, exert maximum pain and achieve maximum publicity. they have been steadily raising the ante and extending their strike to more plants. that has hurt production. but we should say the last two months for the stock prices has also taken hits. but there were an increase in total sales and it is only further down we will see the real impact on supply chain and other issues take affect. shery: bloomberg's su keenan with the latest on the auto strikes. some progress seen in contract negotiations but we do still have another major strike looming here in the u.s.

over 75,000 employees of kaiser permanente are poised to walk off the job wednesday and what could be the largest strike by health care workers in recent u.s. history. employees earlier rally on labor day calling for better pay and adequate staffing. the planned labor action, coming amid a standout year for u.s. work stoppages. our next guest says unions are making significant gains in areas many thought could not be won. joining us as a director of labor education research at cornell university's school of labor relations. why are we seeing these changes now? is it because the labor market is tight or is there a change in how younger generations perceive work? >> i think there is a change ni consciousness --

in consciousness of the workforce right now. they have made huge sacrifices during the recession and covid and they feel corporations either profited hugely during those events, while they suffered, and they didn't pay them back for the sacrifice they made, particularly young workers are especially frustrated, they are saddled with debt, worried about climate change, social issues, wondering -- their future seems dark to them and they are willing to take risks to make their lives better both at work and the broader community. shery: what was interesting was seeing this organization happening. on social media, how people are using different tactics in order to get what they want. what have you seen that's different from what's been done in the past? >> the unions are using strategies not familiar to the employers. the employers are in a state of surprise. they are being more creative

and more aggressive and focusing on issues with broader social relevance. they are talking about hours at work. and having control over new technology and using very different tactics where they, instead of all going out on strike at once, they are striking strategically in a rolling strike, they are doing practice picketing what happened with both uaw and ups. they are mobilizing community solidarity from the public and other unions. and really the companies don't know what to expect next. any time set of workers goes on strike, another is inspired by it and feels they, too, can fight on these issues and win. other workers are inspired to organize that don't have unions already. haidi: one confluence of

factors we are seeing is also technology, we saw that with the hollywood strike, the overwhelming concern over generative ai, whether that is going to displace jobs and devalue skills -- skills. is this a bit of a false victory for the organizations striking at the moment given the long-term structural changes are seen by some as inevitable? >> the changes were inevitable but the difference in the writers give strike -- guild strike is a significant victory. similar gains are being made with uaw. two big things to point out about the writers give settlement -- guild settlement, under u.s. labor law, what kind of technology the company uses is considered what's called permissive, the company doesn't have to talk about it if they don't want to end the guild got

to make a settlement that gives them more control, and the settlement is how ai is going to be used. the writers get a big say in that. it cannot be used to replace them. they yet to determine how it is used for them. now we see with the auto workers, they understand climate change is going to happen. it doesn't happen at their expense. haidi:haidi: how much focus -- haidi: how much focus should there be on reskilling to contend with these sorts of structural and technological changes? is there enough a on that at the moment? >> it is a matter not just of the workforce but our whole education system which is really struggling right now. we have this tension between the right focusing all efforts on banning books at a time when

when he to focus on preparing our young people to be able to be active citizens in our democracy. and also active participation in deciding how our economic future moves forward. the education system really matters. and workers having a greater voice in what happens with their jobs, the more that are unionized, that have a say, the more likely they are going to be working to come up with a settlement in how we deal with this new technology that is fair to workers and the community and works in the best interest of our country and democracy. shery: during these negotiations, what was really astounding to see was that every time we had these hurdles, when it came to the auto strikes, japanese carmaker stocks would rally. why am i talking about that? at the end of the day, all these changes and unions, that will hurt profit margin.

will competition be lost by u.s. firms? they can't compete with u.s. manufacturers and at the end of the day hurt the broader industry? >> the union's saying that the company has been making great profits and they keep going up. how they decide to distribute those are the question. are they putting the money back to the ceo's and investors? or into the workers and industry? there are a lot of mistakes the u.s. auto industry has made in how they manufacture cars and that's made them less competitive with the other automakers from other countries. the workers should not be the ones to pay the price of those bad decisions and there needs to be a reassessment of how profits are distributed, when we have ceo salaries that are so much greater than the workers that make those profits. when we have the great sacrifice

the workers have made in the last two decades -- two decades, when others have seen profit packages soaring. shery: really great -- haidi: really great to have you with us. on a topic we are following very closely with the uaw negotiations. up next, we have an exclusive interview with re-freezing rambling -- with rafizi ramli, the malaysian economy minister. this is bloomberg. ♪ ♪

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haidi: malaysia is counting on its plan to cut broader subsidies next year to help narrow its fiscal deficit. the economy minister told us exclusively what to expect as the government presents its next budget on october 13th. >> for this coming budget next week, i think the market will be excited because finally they will see a concrete move away from the blanket subsidy system that has existed in malaysia for many, many decades too, as a

targeted -- towards a targeted subsidy system, because that is key to the fiscal consolidation effort of this administration. >> how is the government looking to perhaps minimize the impact of inflation? and do you expect inflation to go up because of this? >> they'll be some form of cash transfers, obviously, to families, and that's why the centralized household database is very important for us to be able to design the cash transfers to go into the right families in the manner that best mitigates the effect of inflation, because obviously the move will have some inflationary impact. the discussion so far is to make sure that at least 80% of the households will benefit one way or another from different kinds of cash transfers when we move

to a targeted subsidy. >> i'm curious what new taxes are about to hit this economy. could you give us a little bit more details on that or can you rule out new forms of taxes? >> we are not going to introduce taxes just for the sake of higher income for the country and for the government without rationalising and consolidating our expenditure. >> shall we be open minded about a vanity tax targeted toward the rich? you said you're agnostic taxes, but i'm wondering what's on the table, what isn't on the table? >> i feel that at least for 2024, i feel like the successful implementation of subsidy -- implementation of the subsidy retargeting program will put us in a much stronger position fiscally and it will allow us some breathing space so that we don't jump on the new taxes

bandwagon to get less. -- too carelessly. >> do we take it then that your target 5% the budget deficit, 5% of gdp, does that come in and how much does that come in? >> yes, we we should be able to meet the 5% budget deficit target that was set for 2023. and the plan is to bring it down further to 4.6% or lower. and with subsidy rationalization going full swing in 2024, hopefully then we will be able to consolidate even further in 2025 to meet our 3.5% target. shery: the malaysian economy minister with bloomberg's david ingles. another story we are following, the world bank sees a slower growth for south asia but still expects it to be the fastest growing emerging-market

region. south asia's economy could expand 5.6% in the next two years, down from an estimated 5.8% this year, the dimmer outok is mainly due to the fading of post-pandemic demand as well as higher interest rates. you can watch us live and see our past interviews on tv, there you can dive into any of the securities or bloomberg functions that we talk about, also become part of the conversation by sending us instant messages during our shows. this is for terminal subscribers only. check it out at tv. this is bloomberg. ♪

shery: take a look at how cryptocurrencies are trading at the moment. bitcoin now falling for a second session, below the $28,000 level which we saw on monday. we continue to see risk off sentiment across the board with bond yields continuing to rise. the 10 year and 30 year treasury yield now at the highest level since 2007. of coursewe continue to watch the latest developments on this ongoing drama, the blockbuster trial of the u.s. versus sam bankman-fried underway right now almost a year after the collapse

of the crypto exchange, ftx. bloomberg's kailey leinz reports. reporter: sam bankman-fried's trial began in federal court in manhattan on tuesday, where he is facing seven charges related to fraud and money laundering. the trial proceedings began with jury selection. multiple pools were evaluated for any bias so that they ultimately can decide his fate here. sam bankman-fried was present in the courtroom on tuesday, he had a shorter haircut, that signature mop of curly hair is gone, he was also wearing a suit that appeared to be too big for him, he might have lost weight while in detention at the metropolitan detention center. this case centers around the implosion of ftx, the crypto exchange and separate hedge fund which he had founded. prosecutors say he orchestrated one of the greatest financial frauds in u.s. history and misused customer funds and use them for things like risky investments and even political donations.

prosecutors will be aided by three key witnesses all of whom were some of sam bankman-fried's closest associates at the time this all went down. the cofounder of ftx, the head of engineering, and his ex-girlfriend and former ceo of alameda research have pleaded guilty to charges and are cooperating with prosecutors. the defense will likely argue sam bankman-fried did not intentionally commit fraud. this is something sam bankman-fried himself has said repeatedly in the lead up to this child and of course he has pleaded not guilty to all seven of the charges. the trial is going to take some time to play out. . it could last up to six weeks. if he is convicted of the seven charges, some of them carry large maximum sentences of 20 years, for five of these counts. so it's very possible if found guilty, that sam bankman-fried could spend the rest of his life in prison or be sentenced to it at least. kailey leinz, for

bloomberg news. shery: let's get you the latest corporate news. the top pick is palantir, the front runner for a five-year deal. . the relationship with the nhs has been criticized by civil rights advocacy groups worried about data privacy. intel, also gaining in late trade after announcing a spinoff or its pgrammable chip unit. altera will become a stand-alone business from january 1 through an ipo or new investment as part of a plan to raise funds for costly turnaround efforts intel paid $14 billion for altera in 2015. that is just about it for "daybreak: australia." "daybreak: asia"

is next. this is bloomberg. ♪

shery: you are watching "daybreak asia." coming to you live from sydney and hong kong. annabelle: we are counting down to asia's mrket opens. haidi: