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haidi: welcome to daybreak australia. i'm haidi stroud-watts in sydney. annabelle: i'm annabelle droulers in hong kong counted down the ages major market opens. shery: i'm shery ahn. ourstories this hour. market gets a reprieve as fresh data has back bets on another rate hike this year. tech stocks and treasuries are rallying. the dollar is weaker. in the sam bankman-fried trial, prosecutors say the ftx co-founder is a calculated criminal that lied of the world. u.s. futures coming online in the asian session under a little pressure after we saw ux -- u.s. stocks gaining ground and the s&p 500 finishing around session highs. the nasdaq 100 outperforming gaming 1.5% in the new york session. perhaps, not surprising given we saw treasury yields back down

with a rebound -- rebound in the bond market with a 10 year yield headed towards 470. we had dated today coming in weaker than expected. the adp private payrolls numbers added the fewest number of jobs since 2021. so perhaps, that's a little sign of a cooling labor market. we also had the ism services index actually still in expansion territory, but cooling to the lowest levels this year of course. does that mean the fed may night -- may not have to hike again this year? that is a key question as we get the higher for longer narrative. we saw the dollar falling for the first time in three sessions. despite the broader risk on session today, wti was pressured in the new york session. a rebound in the asian session and a lot of technical selling. wti and brent both trading below their 50 day moving averages. haidi: let's get more on the markets from our chief rates

correspondent for asia garfield reynolds. you are watching baseball and also the bond markets. i know we are guarding a little of risk. when we look at the longer end, some comparisons are being made to the dot-com bubble. you don't usually say that in the same assistance as u.s. treasuries. garfield: it is one of the concerns for the bond market and beyond that there have been a couple waves of complacency this year. first, early on, the idea fostered in particular by the banking crisis in march that the fed is breaking things. so, it will stop soon and turn towards rate comments -- rate cuts for six months like it always does. time to buy bonds paid that cop washed away. now we have been narrative the bonds have high yields. so they are worth buying from that point of view. they are a haven because they offer you a decent return even amongst everything else. that only works if the yields

stop going up too fast. if you do not get the selloffs we have had you face the pressure of you are in lossmaking territory, unless, you are somebody that is simply buying and holding a couple years. you are immediately facing the question about whether or not you want to stay in this position. i have had a lot of bond investors that end up pushed out of bullish positions. we saw the latest wave of selling etf's were a big part of that. it is not a surprise we got a pullback because of the market looked oversold. but by now a lot of investors will be very weary -- wary about piling back into the market when all it has delivered so fault -- so far this year is it the chance to take ever steeper and steeper losses. long bonds in particular, that

is where, to bring it right around, to that.com and as eulogy -- analogy. here was a something that was seen as a short bid sooner or later. you did not have to make money straightaway but you would longer term. the feds higher for longer mantra has finally seeped through making investors doubted that there is the case for holding bonds. shery: we might see a little pullback in jgb yields today given what happened with treasuries. at the same time the 10 year yield as around the highest level since 2013. that begs the question, what is the level of tolerance now for the boj? if they come back in with these unexpected -- with these unexpected bond buying operations where does that leave the yen? garfield: the yen probably has a little relief that the dollar has taken a breather from its relentless rise against other currencies.

with that pullback in bond yields the revival in risk sentiment. short-term, the yen can probably cope with the boj stepping into the bond market. but in the longer-term or medium-term, about all you can look at when it comes to whether -- where the boj is, because, it is so stuck in a trap of its own making, the outlook for the yen still looks pretty concerning unless they are seriously going to move towards this some of these extremely easy policies. the difficulty the boj faces is that they have also been kind of complacent. it seems they have not really had a great plan for, what do we do if u.s. yields, if other yokes keep rising? because, that puts pressure on japanese yields to rise. it puts pressure on the end of fall if the -- the yen to fall if the boj does not allow some kind of accommodation. at the moment we are looking at

a set up where the boj will try to stay easy. though, it's not all easy. stay easy in the current climate. that risks of the yen cracking through the 150 level that many people are worried about. does the mof jump in to intervene? does it succeed? if it does, can they stop it going through 152 areas beyond that? the japanese public are going to be extremely unhappy with that. shery: are filled reynolds there with tough questions faced by the yen and japanese policymakers. it's get you to annabelle for the thursday morning set up for the markets. annabelle: thank you, we have asian stocks trading at their weakest level your today. the question -- year to date. the question facing equities today is whether we start to see us talk -- a stock selloff reprieve or whether we see it

moderate somewhat. in future so far it signals for the aussie session at least a little mov hgher. broadly looks fairly steady and in quite a tight range in the session in terms of what we see for futures. this tells us perhaps there is a lot of focus coming down from the jobs report friday that will determine the duration of the fed. wheth we see another hike this year. it's pretty much wait and see mode starting to perhaps shape up for asia today. volume is one to track as well. let's change and one of the big events we will be watching in the session today. in career we have the biggest listing of the year, the trading that will take place for dusan robotics. this company is and offshoot of the dusan conglomerate in korea. the robotics arm is focused on collaborative robots and it has raised just north of $300 million so far for the listing. collaborative robots thanks essentially they work alongside

umns. things like making coffee, serving beer. also, for instance, even making deep fried chicken and helping with luggage handling airports. there's a lot you can with a collaborative robots. shery: a fairly they are getting into artificial intelligence deals with microsoft as well. that will be a sector to watch in south korea. we are watching prices for oil as well. focus on brent and wti futures, after they plunged by the most in more than a year in u.s. trading. we have concerns about weakening demand caused by high interest rates. su keenan joins us. there was a lot of technical selling as well, both below their 50 day moving averages. did the rally look a little overdone? su: there were signs we were in for correction. a number of factors are weighing on oil. the 50 day moving average we have seen oil prices come back

in line with the latest decline. bottom line the rally has cooled. there is an old sailing in the oil pit that the cure for high prices is high prices. demand disruption has begun one prominent analyst says. that means fuel costs have squeezed consumers in a way that demand rather abruptly. three of let's look at the five-day charts for west texas intermediate and brent to get an idea of how abrupt halt in the rally has been. we saw west texas intermediate in new york trading a drop of one over 5.5%. closing the day down 5.6% to below $85. in brent trading in london a similar selloff. down 5.4% by the end of the day to close right below $86 per barrel. again, this is a dramatic reversal of a rally that has seen oil rise some 40% since mid june. that was aided in large part by

the fact the opec-plus members extended their volatility -- voluntary cuts until the end of the year going into winter at a time where global demand peaked to our record. we are seeing signs with the gasoline data the demand is pulling back. that was a scenario in which the rally began. there are a lot of of factors including the technicals. the concern about longer interest rates being at high levels, all this resulting in this dramatic back. heidi: what did we learn from the latest meeting of opec members? su: going into this latest meeting we did not expect a change in that is what happened. saudi arabia and russia will continue to extend voluntary supply cuts over and above what opec-plus is doing into the year end. these curbs amount to one billion -- $1 million -- one

million barrels per dy even as we are gettng signs in the past few days that demand is faltering. you are looking at what opec has done to reduce the amount of oil on the market that is resulting in a squeeze. a squeeze that resulted in extreme rally that yesterday saw brent prices in london trading at almost $100. again, we are coming back from those levels. the saud's slashed production in july by one minute -- one milion barrels per day, over and above what the rest of the cartel was doing. russia joined them curbing by 300,000 barrels per day. their experts -- exports. those cuts exteded to the end of the year. that was announced in separate statements released from opec today. th monitoring commite says they will continue to monitor oil conditions. but, it has been the opec came to keep prices steady. what they mean by that is to

keep them at an elevated level. this is an interesting wrinkle after they were fairly successful in raising prices. back to you. haidi: we have the latest with u.s. policymakers and the ongoing discussions with the uaw. we are hearing from fort there is a delay of an additional walk -- 400 workers citing the strike as the region. total layoffs are now out about 1300. we saw earlier reporting earlier in the month, for it saying about 330 employees were asked not to report to work. layoffs have taken effect of the start of september 30. affecting one of their chicago plans and also starting october 2 at the lima plant as well. they say they are not walkouts. these layoffs are a consequence of the strike at the chicago

simply plant because these three assemblies -- facilities must reduce production of parts that would be shipped to chicago. that is the last statement we had october 3. now we are seeing a further 400 workers being laid off, in total just over 1300 at ford. had -- ahead, sticking with the labor strikes, the biggest health care strike in u.s. history is beginning. over 75,000 workers walked off the job. we get the latest on the negotiations later this hour. first, ubs wealth management tells us why they are focusing on stokmrket laggards occur -- including across emerging s. we talk investment strategy next. this is bloomberg.

>> they were spooked by declines of 2%, 3%, 4%, 5% in their etf's. they are joining the crowd in terms of selling. we are seeing a bit of an oversold market here. haidi: let's get to our next guest on volatile markers set -- markets saying investors should be focused on emerging markets. karen robbins is senior vice

president for wealth management at ubs. tell us about the value you see emerging. i guess, that risk premium question when it comes to ems given we don't have signs of sustained recovery out of china and the risk of dollar strength is always there too. karen: we are fascinated by what is going on with china. we hope for a better growth market there. we believe there stimulus will improve the gdp growth out of china. we have shifted and we still believe that for many reasons, the emerging market space is still attractive, particularly, india, and to a secondary degree indonesia. india it is the population story. as their demographic grows they will grow to be -- we are expecting fits in gdp growth in not too long, a couple years or a decade at least that they will be the third largest economy and that growth is substantial. we think that is opportunity for investors to look outside the u.s. into other areas, outside

of european markets, find some multiples and some valuations that can be attractive. haidi: karen, do the bond markets look attractive to you at the moment, look at this chart. look at the extreme this we hv seen in the selloff. now we see comprions to the longer year -- the longer end 10 year plus two swings during the.com ubble when it comes to u.s. equities. given tis is unlike anything we have seen the last three decades, are there pockets of opportunity? or is it too risky for you? karen: no, i like it. we like it a lot actually. we think theed will raise rates again. we are all interested to see what happens with the job support. but we do see one more time where we think the fed will have to keep rates of a little longer than we originally thought maybe six months or so ago. with that we are extending duration. we are seeing we could expect

10%-15% growth out of good, high-quality bonds. usn euro too. based upon that. if you can lock in rates with excess cash now or shift from some of your shorter term liquidity strategies into some longer duration high-quality that's important. we are expecting people, investors can get decent growth out of the next 12 months from those longer duration pockets. shery: a stronger dollar does not concern you when it comes to all these other overseas markets especially, as we said, india or indonesia, if we expect yields tire for longer? karen: not enough to warrant the divesting of or ignoring those pockets of opportunity. so, we are neutral on the dollar. it has been more stable than anticipated. but, we for sure believe that while the dollar is hovering at these thresholds, the pockets of opportunity for investors are really interesting. we believe there is return to be received from cash, bonds,

stocks, within that stock component for sure. some of the laggards, the non-magnificent seven, the ai oriented plays with investments that we believe have multiples that make them pretty attractive. shery: in terms of sectors, oil. we have seen a massive pullback today. but it seems like supplies might stay tight for a while. how do you like the energy sector globally? do you worry that some emerging markets are actually very vulnerable to volatility in oil prices as well? karen: they are for sure. we are all vulnerable to what is going on with oil prices. i took what your last speaker said to heart there too. we are worried about oil prices for a lot of reasons. obviously, it's effect on inflation. and, all of the regionalized emerging markets will be affected. that said, we do like energy. we like it for mostly the

renewables. it is one of the lagging sectors. so we still think there are some opportunities there in spite of what happens with oil prices bouncing around as they have been to look long-term into some of those ways that even ai can start to affect some of the renewable energies and some of the new developments there. we certainly look at that as one of the sectors we like and think is favorable. haidi: karen robbins good to have you with a senior vice president for wealth management at ubs. we have more to come on daybreak australia. this is bill burck. -- bloomberg.

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styles and textures. curated by joanna gaes haidi: the biggest health care strike in u.s. history has begun with more than 75,000 employees of kaiser permanente walking out in the latest in a month-long series of labor disruptions across the u.s. economy. bloomberg loyal labor is

reporting with the latest. we have seen tensions growth since the pandemic. we have all heard of underpaid overworked nurses as well. what are the grievances here from the employees? ian: thank you for having me. the main grievance really is that there are not enough workers. a lot of folks according to people hired in these facilities as well as the union, they were burned out and they quit during the pandemic. a lot of those folks the union says have not been replaced or have not been replaced fast enough to ease workloads and provide a safe environment for patients. haidi: so much of this has been exacerbated by the sheer pressures of the pandemic. what are we seeing in terms of

similarities between these other labor organizations and starts going on at the moment? the auto strikes, the actors strike, the writers strike that recently concluded? ian: right, well they are certainly -- there are certainly more similarities than you would think. a concern of all three strikes including others that have happened around the country is that corporate profits have grown significant lead during and since the pandemic. in a good economy, with a tight labor market, workers are feeling more empowered. they feel as though their employers are not sharing the spoils that they have gained because of the good economy with rank-and-file workers. shery: quickly, we know the strikes start to affect public opinion when it starts to hurt the average american. what will be the impact on patient care? ian: right. as you point out, certainly,

there is a tussle between the union and kaiser permanente management to be the one that is looking out for patients. in the court of public opinion that party is the one that will come out victorious here. patients, meanwhile, there are about 13 million kaiser permanente patients that will not be able to schedule routine appointments. not just with their doctors, but optometrists. they might be waiting a really long time to get scans. folks with chronic conditions like cancer and others where you need regular checkups, regular scans. that process is delayed. granted, this is only a three-day strike. so for the moment, those delays will not be long term. but i talked to folks affiliated with the union who suggested there could be more strikes going forward if they cannot figure out a deal with kaiser permanente.

the two parties are still at the bargaining table trying to figure out all last night, through the night, pretty far apart according to sources i spoke with. haidi: bloomberg's in kullgren. uaw strikes as well ongng. ford trading after hours. ford just announcing another set of layoffs totaling 1330. they directly assign these layoffs towards dutch to strikes because of what they call

haidi: franklin templeton ceo jenny johnson expects the fed to

hike one more time this year as the u.s. economy navigates challenges from inflation to worker strikes. on the sidelines of the greenwich economic forum. jenny: it feels like this soft landing is may be a recession but not a bad one. the challenge, i think, is whether or not the fed can -- there are headwinds to getting inflation down. look at wage pressure on things like the auto strike and a lot of discussion that if they are successful you will start to see other unions striking. sure enough today you had 75,000 employees at kaiser permanente on start looking for wage increases. those will be very inflationary. oil, obviously the price of oil trends down a little but is still high. so my gut is the fed raises one more time. why not? it's built into the market. then the question is, how quickly can it cut? rising that even -- i think that

even, it certainly will not happen the second half of next year, and as long as you leave that, people are probably staying a little short duration, after this cut, you know, maybe we see investors go little further out on the curve. but, my fear is this sticks around for longer than the market expects. >> what are you thinking about doing in that kind of scenario? when you think about how you will be setting up for that kind of world, what are you doing? what is your degree of certainty right now? it feels as if there is a lot of competing forces at play right now that are really difficult to tease apart? jenny: there are real opportunities out there. you get paid to be in fixed income. if you are in cash or money market funds you're getting 5.5%. yield, there are great areas in

the market. if you can withstand the illiquidity risk of private credit i love private credit. especially now as regional banks have retreated we are seeing in our private credit team anywhere from 11.5% to 12.5 percent yields in the fixed income market. i think anywhere you are seeing that as an opportunity. sure, i tend to believe the 10 year will stay up a little longer just because of the macroeconomic environment where the deficit has on from 30% gdp up to 100% of gdp where it is a $31 trillion. you need buyers of that. if we do not have enough buyers that will keep interest rates on the long end a little higher. so, i think fixed income is a great place to be. how much of that is all built in a longer cycle of higher rates? how much is built into the equity markets, i am not sure. if i am in the equity market that i get a little more conservative. good cash flow joe -- generating

companies with good dividends. shery: look at crude rebounding slightly after theorst day in more than one year. we saw the biggest one-day drop since september of last . demand concerns about theome economy. some technical selling as well. in the physical markets we are still se sins of tight markets. saudi arabia an russia reaffirmihey will stick with oil supply. more than one billion barrels a day until the end of the year. the opec-plus output cuts are a reaction to tight monetary policy. tamar essner is principal at vectis energy partners and joins me here in new york. great to have you with us. are they anticipating the global demand slowdown because of higher rates? is that what is happening? tamar: i think saudi arabia is trying to front run concerns about economic slowdown in china, particularly, negative

impacts for chinese oil demand. i think that saudi arabia has observed that throughout the year china was able to take advantage of cheap russian crude and they have been stockpiling fruit all year. -- crude all year. now, the concern is that do not need to import much oil. they can run down oeir domestic inventories and that should pmelid on demand later in ther. saudi aa i trying to front front an practically manag against is that because it's easito do that in advance then establish a floor for prices when already you have seen an economic ma. -- hit to demand. shery: we are seeing some any measures coming from the chinese economy that i would think those would start to filter through their economy and the rebound might be possible next year. what are your expectations of chinese oil demand next year? tamar: we agree with saudi that the risks are to the downside because at least short-term inventories are so high.

we think that china will run down there global inventories and work on taking advantage of the higher refining costs rates and work on exporting more refined products to the market. the other concern for saudi in addition to china is global central banks. they are cal saying at some point higher interest rates in most of the world will start to bite economically. i also trying to get ahead of that. yt.have notsee that slowdown basically we are in a situation now where the global economy runs on both oil and access to capital, both of whiave been restrictive. at some point that will impact to global economy. haidi: has it been surprising the disconnection that we are seeing in the usual correlation, the inverse correlation we are seeing between strength in the dollar and energy prices? tamar: yes.

i think that's a bit of a disconnect between what we would expect and it is interesting because the strength of the dollar is actually made that has actually made oil prices more painful in emerging markets and other currencies that are weaker than the dollar. so, that has definitely been problematic for demand. i think that saudi arabia is actually in a very interesting dance year because they are at levels certainly, when we were closer to $100 where they were really risking demand destruction particularly in emerging market countries. i think saudi was basically saying, we are willing to let prices overheat a little bit even if it means demand destruction because we are so worried about protecting the downside. as i was saying earlier, i think their thesis is it is easier to protect the downside prophylactically if you will then deal with providing a ceiling later on if prices overheat. then to protected downside in an environment where demand is

actually falling. haidi: how do you invest around this? who are the winners? tamar: interesting question. i think the winners now are the oil producers. globally, you know, in saudi arabia, i think producers in the u.s. are looking very good. they remain very disciplined. so, the volatility in oil prices should not really impacted them as much because they are not hedged as much as they used to be. they are able to run business models that can withstand volatility in prices. so even if we move to $70, 100 dollars, a pretty wideband, most oil producers in the u.s. can comfortably manage around that. saudi arabia obviously does very well with prices upwards of $80. they can then balance their budgets and actually grow their

economies. it is definitely beneficial for producers for now. consumers are starting to not be other levels of high demand destruction but we are flirting with those levels. so this seems to be 80 to 90, a sweet spot the market can maintain without losing too much demand. haidi: tamar essner is of principal at vectis energy partners. let's look at the news today. tucson robotics starts trading in salt thursday after south korea's largest ipo of the year. the company last year sold shares at 26,001 each. it is one of the most sought-after sectors in korea this year as the government and major local companies step up investment. blackberry is planning to list its internet of things business

separating the unit from its main cybersecurity operation. the ipo is expected to launch first half of the companies next fiscal year following a strategic review underway since may. blackberry's announcement sent u.s. listed shares plummeting in closed market trading. more to come on daybreak australia. this is bloomberg.

matt: i am for both of them now eager to hear their plan and vision. if the house of representatives goes from the stewardship of kevin mccarthy to either jim jordan or steve scalise it will come to that all of many conservatives. shery: congressman matt gaetz speaking to bloomberg earlier. republicans will have to decide next week whose turn it is truly the divided majority in the house. for more bloomberg political news director jodi schneider joins us from washington. do you have any idea now who could unified this very divided republican party in the house? or do we just see more contentious infighting? jodi: that is the real question. can anybody get to 218 votes, the majority in the house that you might recall kevin mccarthy it took him 15 rounds in a historic vote earlier this year.

then he only served to her 9.5 months when he was forced out by the dissident wing of his own caucus. it is really hard to see who could get to that number and then can they unify? no democrats voted to save the speaker yesterday. in that historic vote on that motion to vacate. that was basically to oust kevin mccarthy. we are hearing names. steve scalise came out and we saw that from a. matt gaetz of course brought up the motion to vacate. he was the one behind this attempt to oust the speaker. he was the one that really kind of moved that forward. so, steve scalise is one name. he is in the majority leader. he is thought to be somebody that could work on issues. he is well-liked among republicans. he is a conservative but viewed as -- especially these days, given how very conservative

parts of the congress are, that he has viewed as a conservative that perhaps could win enough votes. he is in treatment right now for a rare form of blood cancer. so, that's an issue. then you also have jim jordan the head of the judiciary committee that told us on balance of power monday he would not run. he liked running the judiciary commuting, but now, he is throwing his hat in the ring. he is viewed as somebody that the very conservative part of the party might go for. we will hear other names as well but those are two leading candidates. we just heard from matt gaetz there that he would support either one at this point. haidi: are the democrats inclined to play nicely at this point when it comes to getting a new speaker? jodi: they don't have a reason to. none of them voted to save the speaker yesterday. they do feel that they did not really get what they wanted while the speaker in the end

made a deal to keep the government open. it did not include ukraine funding, which is i wanted. and, they feel that they have an did -- been dissed by the speaker and the wing of the republican party that he ended up having to kowtow to to really keep his job. then, impeachment inquiry into president joe biden's possible involvement with hunter biden's business dealings. his sons business dealings. that was really something that soured things for a lot of democrats. so, they are not inclined to help much here. but, it certainly depends on who it is. hakeem jeffries have said we will work with whoever it is. but, we want -- we really need things like ukraine funding and we should not have to fight for things like keeping the government open. so you cannot expect a lot of democratic support and with a very narrow republican majority they will have trouble getting to 218 votes, whoever the

candidate is. haidi: bloomberg political news director jodi schneider there with the latest. the latest on u.s. china relations. u.s. commerce secretary gina raimondo says the u.s. needs different tools amid reports of a chip breakthrough by huawei. speaking at a senate hearing raimondo said the u.s. needs more ways to enforce its export control vision. -- regime. the commerce department is investigating huawei's new smartphones. raimondo last month saw no evidence huawei can produce the hardware at scale. shery: president biden approved an additional $9 billion in student debt relief saying it would provide a boost to the u.s. economy for more let's bring in bloomberg u.s. economist stuart paul. we are talking now about $9 billion that would then total

126 billion dollars approved by the administration to be forgiven. still more than a trillion dollars in student loans. how big of an impact is says when all these people have to start repaying loans? stuart: $9 billion is not a huge impact. similarly, there is about one point $5 trillion of outstanding federal student loan debt alone separate from private student loan debt. by our best estimates, when federal student loan repayment restarts, and it is already restarted this month, and we acal saw flows accelerating ino he department of education's coffersasearly as august, we estimate tose flows will be in the range of about 4.5 -- 4.5 billion dollars-$7 llion a month, closer to under $6 billion per month. $9 billion ofrelief does not make much of it into. by our best estimate we are thinking that the restarting of

student loan repayment will end up eing about 20 basis points of annual gdp growth. haidi: the administration has rolled out programs before, right? when it comes to trying to reduce the burden that we see. do we see this as having any kind of meaningful impact? stuart: some of the programs that have been rolled out, there have been a host of income-based repayment programs offered in the past where folks that have gone to college, accumulated the debt, but are earning relatively low incomes, perhaps, working as teachers or nurses or firemen, serving some critical public service fnions, not only do they get to pay lowerances, lower repayment flows each month, they also have the efit of public student loan forgiveness in some programs. if they perform those roles and responsibilities n society. uptick of those programs has

been relatively low in the past. thoffering of this new program, in our reformulin of past programs, it has th potential to reduce monthly payment flows through the department o education, but not at a magnitude that will substantially push gdp, for example. shery: we kept talking about how the american consumer has been healthy because we had huge savings during the pandemic. how much of a buffer do we have left when oil prices are up? that's an extra tax on citizens with higher fuel prices. we have inflation just really keeping food prices higher as well. so, how healthy is the american consumer right now? stuart: along those post-covid savings -- a lot of those post-covid savings are already going up. the important component you mentioned is inflation. when we look across income distribution, particularly at the bottom 40% of the income

distribution we see real liquid cash balances for the bottom portion of the income distribution adjusted for inflation is already below where it was pre-covid. that stock is excess savings has completed dissipated in real terms for the bottom of the income distribution. sure, some folks will benefit from the save program or the alternative income-based repayment programs that the administration offers. again, in terms of the consumer ability to lean on accumulated savings balances and to support their spending habits going forward a lot of the savings is alay gone, especially adjusted for inflation. shery: stuart paul the bloomberg u.s. economist there with the latest on the health of the american economy. let's look at some headlines on clues about where we are headed. barclays dismissing roughly 50 senior dealmakers as part of its annual staff that. this layoff is said to be part

of a plan to trim the headcount by about 300 people across the corporate and investment banking divisions. it amounts to about 3% of total headcount in the unit that also includes barclays trading operations. ford is saying it will layoff an additional 400 workers from thursday blaming the strike at its chicago assembly plant. it brings total laos linked to -- layoffs linked to this to more than 1300. earlier ford said sales of its f-150 line pickup trucks sank 46% in the latest quarter due to delivery delays. we have more ahead. this is bloomberg.

haidi: prosecutor say sam bankman-fried lied to the world as he built his cryptocurrency empire ftx. tracking the historic fraud trial. ava, who were the first witnesses? what is the jury looking like? ava: after a long day of jury selection yesterday we finally got into the nitty-gritty of the case today. we heard from two witnesses. one was a customer of ftx that explained what his expectations were in times of what ftx would do with his money.

he lost over $100,000. we heard from a very close friend osa bankman-fried. they went to college together. he became aeveoper at ftx. he tught he may have adveently changed some cde that led to a crime occurring. in terf wat the jury looks like, there are nine women and three men. they largely come from public service or government jobs. there is a nurse. there is a train conductor. there is a retired prison officer. so, people from all walks of life. shery: one thing we heard from sam bankman-fried's defense. ava: it will be a couple weeks before we hear what it raises an amendment rate would put forward. we got hands of it today. -- hence the today when his defense lawyer addressed the jury saying sam acted in good faith brady thought he was

making good business decisions and he did not intend to steal money or commit fraud. he said he relied on alameda research ceo caroline at a certain run the day-to-day operations of the hedge fund. he actually advised her to hedge against exposure last year. she does not do that. so, there is thinking there might be shifting of the blame unfolding in his defense during this trial. shery: bloomberg legal reported that reporter ava benny morris with the latest on the sam bankman-fried treat -- trial. wednesdays at the moment. the dollar fallen for the first time in three sessions. it put into context after the best quarter in ear. on the other cited the t, the japanese yen steady at te 149 level. not doing much the last couple sessions. we continue to see the spread between the.s. and japan yields balloonin. so, there is a growing u.s. premium giving a reason for the

young to be pressured. perhaps taking another stab at the 150 level. we stlhave no confirmation on whether or not that was an intervention by japanese authorities. but we see the offshore you want, the aussie, and the kiwi holding steady. haidi: holding steady when it comes to the aussie and kiwi bond yields as well. we saw some relief, particularly the front end rally in treasuries. extending now through some of these asin saw friends with the drop in yields predict -- pretty significant. it comes after what has been a historic meltdown across the bond markets and especially whe it comes to the longer end with the 46% selloff when it comes to u.s. treasuries. daybreak: asia is next. this is bloomberg.

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