>> a good morning and welcome to "daybreak: australia." annabelle: i am in hong kong counting down to the market opens. shery: good evening. the top stories. president biden wraps up his trip to tel aviv signaling full backing for israel and supporting its claims that palestinian militants were to blame for the gaza hospital glass. >> the visit failed to calm concerns of the wider conflict. oil rises amid calls for an embargo. shery: tracking the nasdaq after tesla and netflix post earnings. take a look at those two stocks. netflix rallying in double digits at the moment after we actually saw the biggest

subscriber growth in years, actually raising prices for some customers in the u.s., u.k. and france. tesla under pressure, profit and revenue missing analyst estimates. take a look at u.s. futures at the moment as they come online in the asian session, gains for nasdaq futures given the results from those two companies but at the same time coming off the s&p 500's worst day in over two weeks as we see that renewed middle east risk with iran ratcheting up the rhetoric. looking at the 10 year yield holding at 4.91 level, the slump in treasuries continues but perhaps easing a little bit given the 20-year bond auction the drew demand in the 10-year yield the highest since 2007 and a little bit of pressure for oil after it rose in the regular new york session with iran calling

for the embargo against israel by muslim countries, leading to concerns about geopolitics, not to mention we continue to see dwindling stockpiles. let's get to our top story because president biden has signaled full backing for israel as it vows to crush hamas. during his trip to tel aviv, he tried to allay concerns about the crisis in gaza while pledging $100 million for residents of gaza in the west bank. >> we will make sure you have what you need to protect your people to defend your nation. for decades, we have ensured the qualitative military edge for israel, and later this week we will ask of the united states congress for an unprecedented support package for israel's defense. >> let's get more from jodi schneider. how did he do on this trip? >> he did well in terms of

showing support for israel. he has been saying since that attack on october 7 that the u.s. stands firmly behind israel steadfastly and now showed up and gave that same speech in tel aviv, so that was an important moment to make clear that the u.s. supports israel and that he is seeking aid for israel and he denounced terrorism. in terms of meeting with palestinian and other leaders in the region which had been his hope was less successful. he was not able to do so before he got on the plane with the leader of jordan saying he would not meet with him and others said they would not meet because of that blast at a hospital in gaza, which president biden and israel have said did not come from israel, but it is obviously disputed in the region and came at an inopportune time for him

to try to meet with erbil leaders. -- arab leaders. > have we seen progress with the efforts to get citizens out of gaza? did president biden establish a corridor so this crisis does not worsen? jodi:jodi: there is a mixed record with some assurances from egypt they will bring in supplies of truck's of humanitarian supplies but getting people out is proving to be obviously a difficult situation. the president is turning towards the amana tearing crisis in remarks that humanitarian crisis in remarks and when he makes a speech tomorrow night 8:00 p.m. washington time he is expected to deal with the humanitarian part of this as well and supporting the rights of citizens in that region as well and expressing concern about the growing humanitarian crisis, but

his message continues to be on the side of israel, and that is obviously getting attention around the world. haidi: jodi schneider here with me in new york. our next guest says the world is in the process of reordering itself, something it does every few generations. with us now is the chairman at geopolitical futures. georgia, great to have you with us. you have recently written we are in a new period consisting of four, economic crisis -- war, economic crisis and mutual rage. how long do you expect the bore to go on given past history? >> for a long time given us history. you have to remember that a lot of erbil nations are hostile to hamas -- arab nations are hostile to hamas and want this to settle down, so one of the scenes we are seeing in this world is traditional animosities

are shifting, so egypt did not want to see dissent jordan did not want to see this and they are trying to walk a tight rope that we really have to understand that the president's visit was so important not only for the israelis, but many arab countries that are hostile to us. shery: we did not see president biden having these meetings with arab leaders that were expected to happen. do you think that this will hinder progress in the future or was this just a matter of timing given the blast at the hospital in gaza? george: firstly, he was there. that mattered. secondly, you don't have to have public meetings. the discussions that take place between nations are not for telecast, so basically what he did not meet with anyone and others had a lower level

did meet and get the message out which was basically that the middle east is one of the places that is changing and one of the changes is the tension between countries like egypt and hamas in the fact that the u.s. will be there to support them. they cannot say that publicly. haidi: as you have mentioned and written about there have been many historical instances over the past, well, in the past 50, 30 years, many examples of tensions flaring up in the region. given that tv, social media channels, platforms are being flooded with these terrible images, you know, both sides of the civilian population are suffering at the moment. does that change the calculus in terms of how global leadership can approach this latest situation? george: television has been around a long time. movies have been around, radio, and so on.

we have been in a world where information is moving rapidly and is sometimes misunderstood are well understood what happens but i do not think it changes the basic reality which is this not what the arab world wanted. they wanted to have an ongoing relationship with israel and so on. it is not what israel wanted. it is what hamas wanted because they wanted to break it down so now we have to deal with hamas, of public visions, this will not change. haidi: perhaps more interestingly this time you have other global players potentially involved as well right? lots of countries looking to china and china when it comes to ukraine at one point tried to position itself as a peace broker and is still supporting the security interests of russia and vladimir putin. this is complicate the situation or change it compared to previous instances?

george: i regard china as in massive decline, both economically and in terms of its strategic position. it is looking for people to work with, and brush will happily work with them but they don't bring anything to the table, so china is in one of those crises for organizations in the world that has to restructure itself and does not have all that much time to do so and in the meantime they are not really a factor. shery: are russia and china some of the biggest winners out of the situation between israel and hamas? it distracts from the ongoing war in ukraine. george: i don't think anybody is distracted from that war. i think the united states for example, has to look at both of them, but the war in ukraine is continuing, as i said before. the war is over. they don't know how to end it,

in fact, russia failed in its attack and will not be able to defeat ukraine. china has its economic problems, so when we look at the world, there is a process under way in which countries that we thought would be very powerful really are not, so as to being distracted by this event in the middle east, i do not think that the u.s. military, poland, or the polish or ukrainians will be very much distracted. shery: we have been seeing this as heidi alluded to, closer relationships between china -russia but also the sense of solidarity among these challenges of the existing world order whether china, russia, iran, north korea as well. will we get more of this fraction of this division and vergence among world powers --

divergence among world powers that basically the pax americana that we've been talking about since world war ii is over? george: quite the contrary. the united states is more powerful than ever. remember, for all of the conversations about china helping russia, it has not done that much without the discussion about emerging russia as a power it has put on a shabby show in ukraine, so in other words, the world is changing but i do not see the united states is being weakened. i think it remains the indispensable power, and it was the power that kept russia from taking ukraine, so when we look at the whole thing, when we talk about the alliances, asked the question, what have they actually done with each other? so when you talk about china and russia coming together, and doing what? russia has a war. china has no troops in the field, so we have to be careful not to confuse rhetoric for

reality. haidi: how does that change if there is another trump presidency? george: well, did not the americans will have another trump presidency. look, he is to me, but not to many americans, offensive. many american presidents like richard nixon were not only offensive, but literally a criminal and got away with it, so the idea that trump can single-handedly disrupt the nation this big is on likely -- unlikely. i doubt he will win again, but again, you look at nations, the robustness of nations, and united states is robust not because i am an american and say that, but because you compared to the forces of china and russia and what they cannot

bring to bear is substantial. haidi: george friedman, great to have you with us, founder and chairman of geopolitical futures. markets, we continue to watch how things are playing out in the middle east. let's get to annabelle. are we seeing much momentum when it comes to safe havens at the moment? annabelle: yeah, something we have been really really monitoring over the past couple of weeks with investors moving in, moving out based on the level of escalation but certainly in the prior session a flight to safety has been a big focus. you can see for instance the euro versus the swiss flank near the lowest level since 2015 and the japanese yen as well. there has been a bit as we've seen further dollar again, another safe haven play, also amid higher treasury yields and when you take a look so far we are again seeing the aussie and

kiwi 10-year yields pushing higher, so when you have that environment and that move into safety and of course you have oil prices as shery was binging at the top of the hour, but we saw that spike in oil even though wti is flat but not a great environment really for equities as we know and you can see sydney futures for instance online in less than an hour but a drop of more than 1% and also kiwi stocks trading in the red. what will be interesting in the session is just how much investors continue to pay attention to what is going on in the middle east and so dominant those geopolitical headlines versus what has come out of her earnings as well because when you take a look at what we are seeing and nasdaq futures still pointing higher and that etf, qqq etf that tracks the nasdaq, had a bit of a bounce so it is that dual focus of a geopolitics versus the numbers, and those big tech on wall street.

haidi: yeah. earnings front and center. of course netflix is one we are watching, hiking prices for some customers after posting its best subscriber growth in years and we will get an analysis of those results with third bridge. on deck, tesla is the other big one we are watching with third-quarter earnings disappointing with news that the cyber truck overshadowing that. we will have a look at that. this is bloomberg. ♪

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haidi: take a look at some stocks we are watching. tesla and netflix seeing gains. tesla, one of these magnificent seven top stocks members right we have seen profits missing estimates but gross margin roughly in-line with expectations but really it was the news about the cyber truck delivery scheduled for the end of november from that texas gigafactory that dominated headlines, and spoke about a lie it has doubled the size of its ai training accommodating for the growing data set in its optimist robot project and the shanghai factory update running at full capacity for several quarters despite not expecting an immediate increase in the run rate, so still upside although that has been given back at the moment in the after our session. netflix was the other story

raising prices for some customers in markets such as the u.s. u.k. in france and the best quarter for subscriber growth in years, so quite a turn of confidence being struck when it comes to those netflix numbers. that's get more and bring in our senior analyst for bloomberg intelligence. great to have you with the spirit these numbers were a bit of a plot twist for you. >> absolutely. they crushed it when it came to metrics and subscriber numbers as you pointed out was the big surprise. they reported nearly 9 million describe her games 40% to 50% higher than estimates and the bigger surprise was they continue to see that subscriber momentum into the fourth quarter, so again expecting similar gains meaning another 9 million that could turn out to be one of the strongest quarters for netflix and its history comes a really a huge change in tone given that we had that huge correction last year and kind of this whole story about streaming

saturation. shery: do you expect that to continue with the price hikes and also what have we seen in terms of revenue flows like ad spend. >> some of the commentary they are providing in terms of their ad initiative is something they have struggled with the monsters on the 10 months ago so it's pretty much in its early stages and in its infancy but they did provide encouraging commentary this quarter and said they'd seen almost a 70% increase in growth and almost 30% of new member ads in countries where the auction available is coming into the ad plan so that shows the initiative is gaining traction and i think what the price increases tell us is the fact that they are able to take price increases at this time that is a challenging time given the alley would strikes in the general tone in media, the fact they are taking these price hikes just talks to us and tells us how much of pricing power they have and how much confidence they haven't it is a

gutsy move, but i think they expected to have it stick and expect customer engagement in loyalty to be retained. haidi: that is the latest on netflix. we are seeing a very different picture when it comes to the stock reaction after hours for tesla which reported boards than expected earnings for the third quarter. shery: that was also overshadowed by news his long-awaited cyber truck will finally hit the market next month and for more let's bring in archer trade bureau chief -- our detroit bureau chief. let's start with the results. what happened? david: the news is not good. the stock bounced around aftermarket trading down at first and then back up again and it might be down again now because they were short on revenue and they missed versus the street consensus and $.72. that is not good.

gross margins were 16% in the street want to closer to 18% so that is not good and when you look at the longer view of tesla it was not that long ago they maintained 20% gross margins is where they wanted to be and they would not go below that. they have been cutting the prices on their vehicles ever since then so they are basically saying look, they're not going to do that but they are well below that melts at the bottom line is investors are seeing tesla give uprising to maintain market share but it is really hurting their margins. [typing] haidi: david is aware there any hence that jumped out of these -- hints that jumped out of these numbers that were worrying to you? with the news about that shanghai for factory there was no change in the projected run rate. david: they said they will boost

production in china which will help them. that fuels the idea that there is still a grocery here, as -- growth story here, as does the cyber truck which is a big deal as well. one of the deals with tesla is they are still growing ok, but they're growing in the u.s. for example 19% as opposed to 50% and the high rates they used to have, and their market share in the u.s. has fallen to about 50% in ev's because there is new competition coming and that has worried investors all along so if they can get the cyber truck up, that tells you there is a second wave of growth for the company, but they would do it up lower margins and at lower prices, so there are a lot of gives and takes here that have investors sort of worried a little bit. i think the shares are not doing terribly aftermarket but it is not a luring success for the company either. -- luring "daybreak: australia."

haidi: you can get more on your bloomberg for more on those numbers from tesla. that is where you'll find commentary and analysis on bloomberg -- from bloomberg expert editors. this is bloomberg. ♪

haidi: you are watching "daybreak: australia." the founder of country garden has met with the head of china national agricultural developing group and it said it's looking to deepen cooperation with the state-owned firm and on wednesday country garden signaled it is set to default on the dollar bond after warning it would not be able to meet all of its offshore payments on time. shery: the apple ceo tim cook has won backing from china's economic minister for sharing

dividends with the chinese market and he said china welcomes the tech firm and other multinational companies to engage in win-win development and china. this is tim cook second visit to the country this year, coming as apple faces sluggish iphone 15 sales. china could limit the use of its products by government employees are also a concern. we have breaking news the moment. we are getting lines that the u.s. is suspending some sanctions on venezuelan oil, gas, and gold sectors. this of course as negotiations continue between the two sides

haidi: take a look at two of the

big tech stocks we are watching after hours, a tale of two directions when it comes how to investors are feeling about to netflix and tesla. numbers missed estimates and gross margin roughly in line with expectations and excitement when it comes to cyber truck deliveries scheduled for november 30 from the taxes gigafactory as well as commentary when it comes to running full capacity when it comes to operations at the shanghai factory as well but investors not feeling super excited about tesla but certainly netflix continuing to see significant gains on the 12 point 5% up in after hours trade raising four prices from some customers in the u.s. u.k. france and best quarter present briber growth in years, part of the competence coming out of that announcement. let's get more analysis on netflix with a senior analyst at third bridge who joins us now.

we also had some commentary when it comes to that earnings call as well from netflix and really talking about you know they are not satisfied with the scale they have been any country in still rolling out the password sharing crackdown as the membership plan group 70% in the last quarter, one of the condo strongest content slates and a quarter and as you look at the subscriber numbers in terms of this truck was there any weakness in these numbers for you? jamie: it is a very good question and thanks for having me. if we look at the subscriber growth numbers netflix had generally across the board they were quite strong. you think about where the company was a year and a half ago staring down subscriber losses overall, it is seeing strong growth and not just some of the markets where it has rolled out around the world but more mature markets like the u.s., canada and europe seeing almost 2 million subscribers added in the u.s. in well over

one million in europe and asia as well, so when we think about this to your point also about what is in store for netflix it does seem that there is momentum building with the crackdown on password sharing. if you think about the total number of households they are targeting, initially that number was 100 billion, so netflix will be certainly thinking there is an opportunity to drive growth with the subscriber numbers. haidi: when we solve the labor strikes in hollywood, has this been a best possible scenario for netflix? it boosted cash flow but did not seem to have much impact when it comes to the content release schedule. jamie: that is a good question and there are different things to highlight here. one major point from experts is that while netflix is enjoying some of the short-term benefits from those strikes come and just think about the investments they do not need to make in content, that capex they can save is a benefit in the short-term but it is a longer term where we might

see more negative effects, while the content release schedule has not been shifted to much over the summer and into the fall, as we head into 2024 if the actor strike continues for much longer there could be breaks and programming. another point we have been hearing from experts is the fact that as the velocity of content release slows, we could see challenges when it comes to subscribers and people thinking when they opened up their netflix account what is new and do not see if they might be more inclined to try other platforms, so while you seem to be going pretty well now as long as the actor strike continues, there are some threats looming on the horizon when it comes to that longer-term content distribution. shery: how much can international content make up for that? jamie: that is a really good point in one of the things that we have heard as a major differentiator for netflix. they already have a well equipped and financed production capability and having bet on top of the international rollout and

increasing openness to international content, those are tailwinds to the company, if we think about the new reach and success of international shows like money highest, squid game, not just local markets but internationally is that there are some things that can mitigate the strikes for netflix. that being said, so ultimately netflix needs that original english-language content, but this is a factor with that will help manage some of the challenges down the road. shery: they also have advertising-supported versions of their services in those markets. how big of a factor is that to the overall business? jamie: there are two things to look at with the advertising business. if you look at the numbers netflix is talking about seeing 70% growth versus spring, 30% of new subscribers are going to that advertising tear in those markets where it is released, those are impressive numbers and

encouraging for the direction of netflix it also worth keeping in mind that netflix when it was initially launching the advertising-supported tear was talking about seeing 40 million subscribers by q3, q4 this year, and it is clear they are well away from that target so while there being encouraged by some members they are seeing it's not quite where they wanted it to be, but we are hearing a lot of optimism around this, the pricing, the price point is attractive particular if you look around the industry and see price hikes from players like disney and warner bros. discovery, that seven dollars is still attractive so there is opportunity here. it is a question of how quickly netflix will be able to scale this business. shery: it is interesting because people are pointing out higher expectations for another season of stranger things. haidi: do you see the trend of subscribers renewing subscriptions for one show, the one thing they want to watch, and is there risk to that?

jamie: that is a really good point and there are a couple of different things to highlight. if we think about why a subscriber goes to a platform often times it is for the one show or the one titled they want to see, and once they have consumed that, the next thing they will think about is, what is next, and if there's not something appealing but they might move on to another platform. one thing about netflix is thinking about the content they already have. they do a good job of showcasing their library and other content viewers like to see. if they like stranger things, maybe wednesday, or if there watching beef but they will turn to other shows released over the past few months but, if you think about overall just what netflix is trying to do, they definitely want to get back to releasing new content as soon as possible on a record schedule once the actor strike has concluded to show that value because at the end of the day content is being able to

showcase and drive engagement that is incredibly important for long-term success in the amount of time someone will be subscribed to the platform. shery: good to have you with us. we also had earnings results from another bank morgan stanley and its stock plunged the most since june 2020. dealmakers posting the big drop in fees on wall street and its wealth management unit with the lowest inflows in three years. we have this report. >> morgan stanley on wednesday rounded out the big six banks reporting results for the third quarter of this year, with morgan stanley saying wealth management revenue fell short of expectations. now morgan stanley has the biggest wealth and asset management business out of its three biggest rivals, and it also fell short of net interest income for the quarter and also said that investment banking revenue had fallen more than

goldman sachs and jp morgan for the third quarter. with that said, james gorman and his rival david solomon have seen signs of dealmaking could come back and there are green shoots for dealmaking in the future and these investment banks will be poised to capitalize on it should the market started to stabilize. haidi: be sure to turn to bloomberg radio for more and in-depth analysis from our team from our studio in hong kong. you can listen by the app radio plus on bloomberg.com. plenty more ahead. this is bloomberg. ♪ the first time you made a sale online with godaddy e you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com (adventurous music)

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>> i will be looking carefully at the data to see whether the real side of the economy begins to cool off or whether the prices, the nominal side of the economy, our heating up. as of today it is too soon to tell and consequently we can wait, watch, and see how the economy evolves before making definitive moves on the path of the policy rate. haidi: the federal reserve governor christopher waller. fed speak has been a key driver

of market moves which has pummeled assets but bank of america says dynamics are shifting about discuss it and bring in annabelle. could it be towards a slightly less negative environment? annabelle: slightly less. a little bit less of the bad news baked in, but what they are looking at is coming down to traditional asset correlations, looking at the u.s. aggregate investment-grade bond index versus treasuries and also equities and saying essentially you know in the last few weeks we started to see those correlations start to break down somewhat but the correlation between as i said the height yield or the investment-grade bond index versus treasuries, and treasuries versus equities as they are starting to move less than lockstep. what that means is it tells us the environment is getting with

risk assets and bank of america sing really what it means is credit corporate debt and stocks are starting to shake off the treasury turmoil, and certainly something that could be a lot of cheer to different investors. shery: what about the 60/40 portfolio investor? annabelle: that is one of jamie: them them because it had its worst performance last year since the financial crisis and has not been performing over the course of 2023, but jp morgan actually say in the latest report which takes out a 10-year time horizon they say the 60/40 portfolio will be outperforming cash by around 4% to four per 5% percentage points in the current environment where records you can get a 5% return just by parking your money in short-term debt securities, so why they are saying that? jp morgan as i said has a longer-term perspective on where fed rates will be and they said they would be around 2% to 3% so this is an environment where equities will continue to

outperform. they also say it is worth looking to alternative investments and putting that into your positioning as well. shery: right. let's look at how em market as says performed today under pressure with soaring oil prices in the conflict in the middle east overshadowing the optimism we got from better than growth data, the mexican peso and the colombian peso were some of the biggest losers today. one of the largest financial firms in latin america favor the stock market in chile. their ceo joins us now. it is great to have you here in the new york studio. talk to us about what is happening in latin america now because we saw the chilean peso was down but the central bank had to verbally intervene and then it rebounded. how much of that was because of the rate differential issues we are seeing and could we see more

outflows from here as the fed stays higher for longer? >> first of all, what is driving the valuations of the peso are the u.s. yields. this cycle is now going into lowering rates process. the country started early on with inflation control higher than here at the price has been driven by the tightening of the rate differential, and that i think will keep being smaller and that will keep on putting pressure on the peso, the chilean peso. shery: tell us about the outlook, because it's not only chile, brazil, mexico as well, so we will continue to see this differential, but you operate in colombia and peru as well. what do you like in this environment with geopolitical tensions in the middle east? andres: it is tough times. the equity market in chile is

cheap. there are good reasons for that but i think it is overextended and beyond what is reasonable, so i think there could be a good opportunity there, and in latin america, their high rate so it's a good place to do that with a good carry was that those assets could be interesting. shery: you're also trying to expand in the u.s., which is one reason you are here today right? what you recommend to investors and clients and given the growth in the u.s. is there a different way of investing? andres: what we are doing we have done for 20 years and latin america as third-party distributor of funds, very well-known brand names, and about a few months ago we started doing this in the onshore market. we have launched a team that is distributing neutral funds -- mutual funds. i am not allowed to say the

names and know that because i am just the director of the firm, and not an employee here, but we are very excited. it is an important business for us and we are basically covering all the different asset classes. haidi: i am curious, in this sort of environment, out significant is china still? traditionally it has been a strong anchor for emerging-market assets and appetite. is that correlation fading? andres: no. i think primarily the chinese with latin american south american general is the biggest commodity buyer and remain so. in the case of chile, brazil, colombia, so what happens in china does have an impact in latin america, so whatever is going on there will continue to affect markets. shery: where do you see the commodities space going?

i assume if you are comfortable investing in latin america, you have to be comfortable with commodity exporters. andres: i think copper has a good future. copper remains very strong and is part of the electro mobility play. i think it is here to stay, may be faster, may be slower, but you need copper to make electric motors in general. also latin america, what we are seeing in the world today is strong energy prices was so both have a good outlook going forward. haidi: when it comes to chile, we have an uncertain process when it comes to reforming the constitution right? are those political challenges something you worry about or investors should consider when looking at the market? andres: i think they should be considered. there are two things going on that are material. one, a second referendum for constitution reform or a constitution. i am in the pack of the guys

that think this might be approved although all the polls are against it but the trend has been changing. but there are a lot of things. there is another one that is more important to long-term, which is we have to go for pension reform. i don't want to go into details about how it should be. it is not my job to do that but the political forces in chile should do pension reform in the next 18 months for the sector to get settled and move onto the next thing. shery: that is your timeframe for when you see that investment sentiment can improve? andres: well, you know how it goes, you have to buy when there is uncertainty and you have to choose a scenario. my scenario is that chile is now past the big hit we had with the big launch of the her left-wing politicians who took over several of the governments, but

with ideas that i think personally are out of fashion, and i think the markets in chile , peru, and columbia are driving them back to the center, which is good news. shery: it was great to have you with those in our new york studio. you can watch this conversation on tv and watch us live and dive into the securities are bloomberg functions we talk about that become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪

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haidi: the russian president vladimir putin and the chinese president xi jinping may have no limits friendship but the alliance is not one of equals. moscow has become increasingly dependent on beijing with the invasion of ukraine and that relationship was on full display at the belt and road forum which is the first trip abroad by vladimir putin since the international warrant was issued for his arrest. >> this highlights important fallout from the war in ukraine because it is not a master dealership anymore. the site on the outskirts of

moscow sales vehicles made by the chinese carmaker. in fact brescia is not the biggest buyer of chinese cars, and --, russia is now the biggest buyer of chinese cars and sales have jumped as other carmakers leave the market. there is oil, gas electronics, clothing, and plenty more. >> china is russia's largest trading partner, making up about 20% of total imports last year. >> russia's invasion of ukraine started tilting the balance of power in's china favor. >> the result of the war is china has become russia's most important partner diplomatically, economically, and the trading relationship has just exploded. it reached $190 billion last year and grew another 40% towards the beginning of this year. >> china is benefiting from the relationship securing access to russia's plentiful natural resources. >> for the u.s. and the west in

general having china and russia aligned makes for a pretty powerful opponent in the race to redraw the international order. shery: take a look at how futures are trading at the moment. some upside after we sought u.s. stocks falling in the new york session in the s&p 500 coming off the worst day in over two weeks as we continue to have that risk around the middle east conflict with the israel-hamas war ongoing, and we had more strong words coming from iran calling for an embargo against israel by muslim countries, so oil also gaining ground, and at the moment we are seeing it hold at $88 per barrel. futures slightly better after hours given the etf tracking the nasdaq 100 advancing in late trade on the gain with netflix after results in the best subscriber growth in years, and

they are already raising prices for customers in the u.s., u.k. and france and added 7.8 million customers in the last three months. and a lot to know about what's happening in the stock market with treasuries, the slump continues of the two-year yield the highest since 2006 and the 10-year yield high since the 2007. it did ease after an auction of 20-year bonds drew strong demand but it is about what happens next with the fed speak in the latest beige book that showed the latest outlook for the u.s. economy was stable or perhaps could show softer expansion. haidi:, you mentioned the big moves across treasuries -- yeah, you mentioned the big moves across treasuries and the broader indexes what will play out when it comes to asian fx trading. we are watching the aussie dollar dropped .5%.

we saw it gaining some momentum to just shy of 64 during the asian trading session with better eco-data giving it more of a push but reversing into those losses. taking a look at the set up for equities, we are looking at headwinds when it comes to asian stocks as they come online after a tough day on wall street and a rise in oil prices and some volatility in asian currencies and potential further downside and we continue to watch the implications of the conflict in the middle east as well. that is just about it for "daybreak: australia." we get into the start of trading in sydney in a few minutes. daybreak asia is next. this is bloomberg. ♪

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