shery: you are watching "daybreak: asia." we are counting down to asia's

major market opens. paul: australia has just come online. china ramps up aid for the economy, a higher budget deficit ratio and asian risk assets, in addition to easing treasury yields, trade is also mixed. plus, japan's biggest listing since 2018. annabelle: what i want to point out is that the australian market is sensitive what happens in china. new support measures coming through, stephen engle is here and we'll go through all the details in just a moment. this is an economy very reliant on what happens with china. the golden dragon index, that is

the last close for that because it tracks u.s. stocks around the chinese stocks listed in the u.s. but that was the best data we saw since the end of july. just gives you an indication around how much investors are liking the latest support measures. were also watching in the aussie session, the inflation focus in particular because we have cpi numbers in the next hour and the handle expected to take down, about 90 minutes from now. china is the big focus, though support measures coming through. the tech space in particular, we will get more details on that but just to say that the nasdaq is trending lower, that's not a great signal for us. many of the markets are pointing lower but that is a big jump we are expecting their for china stocks when they come online. shery: take a look at how u.s.

futures are trading, a little bit of downside after stocks rebounded today, with the s&p 500 gaining ground for the first time in six sessions. we had those reactions from corporate earnings, symbolist forecast coming from 3m and ges well. when it came to the treasury space, it was a little bit of a mixed picture with the 10-year yield edging slightly lower but the dollar did manage to gain ground for the first time in four sessions. that was as it was boosted by data showing u.s. business activity did managed to pick up this month. oil prices holding steady after falling to a one-week low. we're seeing potentially more signs of russian supplies, and there's a little more -- the after our moves, were talking about $15 trillion worth of companies reporting earnings this week.

take a look at alphabet plunging, microsoft gaining ground. microsoft seeing the strongest sales growth increase in about six quarters. that was led by that recovery in the cloud computing sector. all different story for alphabet where the cloud unit actually missed estimates. earnings coming out of meta and amazon as well on wednesday and thursday. paul: china stepping up support for struggling economy, issuing additional sovereign debt, raising the budget deficit ratio on a day when president xi jinping made rare visit to the central bank. stephen is here in hong kong. is this the big event we were all waiting for? stephen: they've been keeping that big bazooka locked away because i don't want to exacerbate the debt loads, especially at the local government level.

this is interesting because a couple of weeks ago bloomberg news did have a scoop that this was the likely outcome that we would see beijing, you had a flurry of these announcements coming out on policy and the economy, essentially raising the deficit ratio to gdp to around 3.8%. china likes to keep it around 3%, and that's what the target was at the national people's congress back in march. but the economy is sputtering, to say the least. the stock market is sputtering, obviously the property sector is a big drag, consumer confidence is a drag, foreign investment confidence is a drag. so again, it doesn't necessarily address those two big drags, i'm talking about property. there might be other stimulus, i don't know, down the pike for that. but also consumer spending has

not been given the jolt and this won't necessarily do that, but it will help put a floor and give some stimulus to some of the infrastructure projects with this kind of borrowing and sovereign debt as well as raising that capital the budget deficit will allow. it's interesting that they will be basically issuing sovereign debt. it shows the central government will take on a bigger burden, with these marching orders for growth, in years past the owners goes on to the local government, but we know after three years of very punishing covid prevention and the testing and simply the property sector and land sales have dried up and the local government coffers are strained. the onus will go back onto the central government to issue trillion yuan in sovereign debt. shery: it was all part of

announcements from the national people's congress. we finally got some confirmation of some high-profile staff changes. stephen: we knew the foreign minister position was ousted this summer. now we got confirmation that he has been stripped of his spinal party membership as state councilor. now we also have clarity on the top general, the defense minister. essentially he has been removed and also stripped of his title as state councilor. we also had a shuffling of finance minister, we have a new finance minister, probably to spearhead a plan to diffuse the local government debt issues. but this is the more high-profile one. now the shortest raining defense minister ever in china. we don't know the exact reasons why he was ousted, could be disciplinary reasons, violating

party discipline, could be some sort of criminal probe. they did not give the reason, but last week i did ask ambassador burns, the u.s. ambassador to china, on the significance of his potential ouster which we now know what happen, and whether this will allow u.s.-china relations, military to military, to get back on track. this is what he had to say. >> china shut down are three principal military to military channels, following speaker pelosi's visit to china which was 14 months ago. we believe those channels should be reopened at every level. certainly at the ministerial level. that has been our consistent position all along, because the last thing we should warn in this relationship is the absence of communication, that would just add to the difficulties we've had, and having the straightforward conversation.

stephen: the palace intrigue continues ahead of what is likely to be a summit between biden and xi next month in san francisco. you have xi jinping crossing the pacific with essentially what will be three new cabinet level ministers, ousting the defense minister, foreign minister, and also of course the defense minister and the finance minister. shery: stephen engle there with the latest on china. let's get back to what is moving in the markets. annabelle: i think we just want to get some quick reaction to what stephen was discussing, supported measures to try to boost the chinese economy. you are already seeing those gains coming through for the likes of bhp and fortescue. their other names but not trading just quite yet. also keeping an eye on the tech sector in general, given the mixed moves that came through on wall street in after hours trade

but no clear theme developing out of that just yet. shery: big names in the tech sector after earnings, especially with microsoft, which is now climbing after posting it strongest sales gain in six quarters, bolstered by recovery. cloud computing growth, this is we continue to see demand for new ai products. a whole different picture for alphabet, its cloud unit missed analyst estimates, even as overall third-quarter revenue beat forecast. were joined by su keenan. start with microsoft. su: both companies trail amazon.com in cloud infrastructure. it's been a race to build up these products and microsoft appears to be getting the lead here. they had recovering cloud growth amid demand for these new ai products. it has prompted clients to shift back into spinning mode.

the strongest sales growth in six quarters, it has paired those gains as a conference call has gotten underway and the forecasts have been given. revenue in the first quarter rose 13%, the azure cloud service sales dropped 20 -- jump between 9%. we saw shares really starting to fly come on the conference call we heard that second half wealth in cloud services would be roughly stable. a lot of focus on ai, $13 billion in the start of openai which has catapulted it to the head of the ai race. the ceo revamping the entire product suite, all to add services and a new bid to boost advertising sales take share from alphabet, google, and

microsoft, adding chatgtp technology to its being search engine -- bing search engine. analyst called the better than expected performance a particular highlight. the numbers highlight exactly how well microsoft is positioned in the cloud. paul: let's talk about alphabet, the cloud there perhaps a little bit darker. su: you could say there's a cloud over its revenues right now. disappointing results there, overshadowed across the board beats on most of their different units. investors looking to the cloud business to drive company growth. alphabet missed on both revenue and profit for its cloud business.

it raises concerns about the company's position in a market that has now become critical to its future growth. analyst say it puts it at risk of falling further behind its competitors. third-quarter sales and payouts $64 billion, a bill and dollars more than estimates. but investors didn't really seem to care, beating the estimate. there were really focused on what is going on with the cloud. on the call they talked about cost optimization, saying that explains the weaker cloud story. she did note the resilience and youtube, youtube revenues had formally been a drag on alphabet's performance but are now benefiting from a broader recovery and potential ad spending. paul: su keenan there.

more analysis on big tech coming up in a moment. why there are concerns concerning alphabet. this is bloomberg. j.p. morgan wealth management knows it's easy to get lost in investment research. get help with j.p morgan personal advisors. hey, david! ready to get started? work with advisors who create a plan with you, and help you find the right investments. so great getting to know you, let's take a look at your new investment plan. ok, great! this should have you moving in the right direction. thanks jen. get ongoing advice; and manage your investments in the chase mobile app.

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paul: let's take a look at how some of those big tech names are trading after hours.

microsoft up by more than 4%. a very different story for alphabet, concerns over the cloud, which we will discuss in a moment. we will hear from meta-tomorrow, amazon in a couple of days. joining us to discuss these big tech earnings is the vice president and senior equity analyst at cfra research. thanks for joining us. i want to start off with microsoft, revenue growth 30%, beating expectations. the cloud front and center in this result as well. what are the key takeaways here? >> it be on both the top and bottom line. the biggest take away and you alluded to it, it's all about the cloud, accelerating 29% on

azure. the last quarter about 26%. above are expectation of 27%. that was the big takeaway. it looks even more impressive when you look at it versus alphabet, the acceleration pre-between you look at the rest of the business, they are performing extremely well. on the more personal computing side of things, the return to positive growth on that side of things. you also have the activation contribution. all said and done, cloud is the

major story here, but at the end of the day it's really the numbers on the quarter. paul: saying the entire product suite can be revamped to better weave in ai, the experience. how well do you think microsoft is monetizing ai at the moment? do you see it improving its market share in search? >> i think they are making some good progress. clearly it is on the cloud side of things. they's all -- only saw about one percentage point of contribution on clout ai. they've got their tentacles across a number of different -- different ways they can generate ai revenue on the cloud side of things, in partnership with

openai. it's going to support the interim -- incremental growth they will see from that launch on the office side of things. that's another way they going to make money on the ai side of this. that will continue to support growth on office 365. as far as the search side of things, we are not expecting much there. that continues to be the wheelhouse for alphabet. maybe bing picks up a point or two here or there, but at the end of the day, something that -- unless something changes significantly i would expect alphabet to continue to hold the line share in search. paul: search very much a key

part of alphabets revenue stream. alphabet very disappointing on the cloud. we did hear from the cfo, talking about looking for savings. do you buy the story that it is alphabets control? >> when you look at what -- these are both companies that work through a different macro landscape in terms of looking how to optimize spending. it's something we've seen essentially all year. the fact of the matter is, alphabetic seeing sharp deceleration in the cloud business, versus the expectation of 26%. i think it's definitely a disappointment.

i'm not necessarily buying what alphabet is trying to say here, but that said, we remain optimistic about the broader cloud business for alphabet and we think they will see improvement on the cloud side of things. we think the ai opportunities are there for alphabet in the cloud workspace. we are positive on the cloud story for alphabet but no doubt this is a disappointing quarter for them. paul: thanks so much for joining us. you can get more on those tech earnings in today's edition of daybreak. ♪

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paul: the israeli ambassador to the united nations is demanding the resignation of secretary-general antonio guterres over his remarks on the israel-hamas war. the secretary-general saying this attack from hamas didn't happen in a vacuum. >> it's a classic yuan situation, it's very brought. for israel, they've experienced an atrocity and they want the u.n. and its members to reflect on that. the secretary-general office has to represent the entire world and is no secret that they've been under a degree of occupation for some time. after you've had 1400 people massacred, a lot of them women and children, emotions run very

high. i think it's more case of that than anything more. but it is very difficult to reconcile, the western world with the global south, and how they view the situations. israel has a right to defend itself, but when you see the civilian fallout coming from these airstrikes and the inability to get a two people who are suffering very badly, water and energy cut off, it's very difficult for people in that situation. people are suffering badly and israel needs to try harder. shery: we continue to see conflict around the region as well as u.s. forces have been attacked and there has been increased activity whether in iraq and also in the likes of syria. the secretary of state sending his sternest warning yet. >> that's right, the u.s. would

respond decisively if it's forces are attacked. the u.s. obviously shot down some missiles that came from huthi rebels and this has been bubbling in the background. there is one common factor here in all of this related to iran. you've got hamas, then you got hezbollah in southern lebanon across the border. you got syria and iran, and rn backing the rebels. there's a lot of options around israel and the u.s. is exposed. as it builds up its forces, it becomes more exposed to any moves that iran arts proxies

make. it's a very tense situation. the secretary of state was trying to draw lines to tell iran to back off. shery: the latest on the ongoing israel-hamas conflict. coming up, economists flecked -- expect policy to remain unchanged at the next fed meeting. more details from a new bloomberg survey next, as we continue to see the japanese yen holding, just a touch below 150 against the dollar. this is bloomberg. ♪

>> we are going to see higher interest rates for longer. >> a conflict type of environment. >> we are sitting here with the backdrop of the aftermath of the terrorist attack in israel and

the events that have been unfolding sense, and it is desperately sad. >> long-term i'm certainly optimistic, but i'm uncertain right now. >> you would be foolish not to look at some of the things taking place today in ukraine. >> there is the potential for persistent high interest rates and high inflation. >> the monetary policies were going to see have greater effects on the world. you look at the gap so you can be optimistic on that. shery: top wall street bankers sounding quite pessimistic about the global economic outlook, and really were but could see some sort of optimism coming through in the session today will be from china. we've been discussing the slew of support measures that a been announced overnight. something that played into the dynamics of the wall street session, the focus on earnings.

the golden dragon index is the biggest jump we've seen intraday since the end of july. the outlook for chinese futures as well because opening in a couple of hours and pointing to a solid start there. also the aussie session, half an hour into today's trading. these are the names leading the asx 200 higher in the session today. let's look at where we are at, so far you can see aussie stocks still clinging to some gains but a little mixed, the outlook for the session today because another key theme where tracking is the reaction to earnings coming out. we had microsoft among the big names reporting after hours in the session today and were starting to see that stock pair its earlier gains. s&p 500 futures are in negative territory but it's at mixed outlook today.

the outlook for china or the tech sector, which will be more important? shery: we are watching investors going through japan semiconductor industry, given that were watching for clues on the overall markets direction. let's bring in our asia equities reporter in tokyo. we saw that huge rally taking a breather, how important will the semiconductor earnings be? >> people are really focusing on the semiconductor earnings because it was a big driver earlier in the year when we saw that ai chip boom. many think that might actually be another boost toward the year end. companies adjusting their inventory because them demand hasn't been a strong. during earnings season you see

some sign of companies showing improvement of their inventory adjustment, that will give confidence to investors who are looking into the chip industry. also with the better expected results, that is a sector that people are watching. paul: what are some the other areas of focus this season? >> other areas of focus in terms of earnings, we are seeing that for the earnings season, it's probably going to be driven, positive results will be driven by the very weak yen. stripping away that factor, investors are saying they're not as many positive factors for sectors outside of auto and banks, according to jp morgan, but other areas that people are watching, they are saying the earnings season might be a

little different from others. investors are no longer dissatisfied with the upbeat earnings result. they want to see evidence of companies improving their corporate governance. whether with the announcement of buybacks or improving their profitability. they want to see more of the upward revision toward the guidance along with some specific business plans to improve profitability. those are areas we will be watching along with any announcements a price hikes and wage hikes. shery: it's sort of the same narrative we are seeing in the u.s., for those companies miss expectations and get punished a lot by the biggest margin in years. in japan, how much can we realistically expect the earnings season to boost the overall market which has trended relatively weak these days? >> that's a great question.

people are being very optimistic about how these individual factors might help japanese equities to have that support so that they're not going to be as affected as other markets when it comes to the effects from the high u.s. treasury yields and the war between israel and hamas, and obviously the surging price of oil that comes with it. but at the same time, as you mentioned earlier, when it comes to the week yen hovering just below 150, that makes investors quite nervous if the government is going to step in for intervention, and also we're watching what the boj is going to do next week. so to some extent it might be positive, but overall the sentiment is still quite cautious. paul: our asia equities reporter

there. staying with japan, they still expect policy easing to remain intact at next week's policy meeting as bond yields inched closer to the upper limit. let's bring in garfield reynolds. all this volatility we are seeing in u.s. yields, is this what survey is fondant say about the boj on the sidelines? >> very much the fact that the last increase in japanese yields has caused u.s. yields to go up in dragon everyone else with them. now we are at the situation where briefly for the u.s., it has come back down and things are going a little bit quieter.

it might bring more money coming back into bonds. that emphasizes the potential that the boj sticks with its very slow, gradual moves towards making changes. that is a very strong expectation that we've got from those surveyed. the question becomes do they do something this year, or do they -- or is next year still the focus of when the boj was to remove negative rates and either raise or get rid of yield curve control. what are the other factors playing into it? there has been so much volatility, just as things are settling down, does the boj want to reintroduce volatility? that is very much a expectation of what what -- what would happen if they tweak yield curve control slightly.

shery: with the huge swings in treasury on monday, today was not a lot of change and a little bit of a mixed picture when it came to the bond markets. is it all about earnings now with big tech reporting? what is driving the broader market? >> i think one of the factors that sometimes it can be easy to look past because markets don't do a great job of pricing indian, but the easing of geopolitical tensions does seem to have brought an extra measure of calm. part of those while moves on monday was to do with some back-and-forth on what is going on geopolitically, but also that burst of what was obviously short covering. that has taken a little bit of heat out of the bond market, and

then what looks like a continual delay in actual full on ground offensive, that is reassuring investors that the middle east conflict will remain contained and they can get back to as it were. the bond market, there is a not -- there's not a lot coming in the way of data before we get the fed coming up next week. so it is looking like it wants to stay calm for at least the next little while, lest we get something that disturbs it. therefore that's a roundabout way of answering your question but i do think earnings or kind of what matters, because the rest of the issues that were causing so much angst for both bonds and equities have been moved to one side. shery: garfield reynolds there with a look at the bond space

and all of the volatility we have been seeing in the markets. coming up next, we will talk about the real estate market. we have the ceo for a global property operator. this is bloomberg. ♪ a digital money coach in the chase mobile® app. use it to set and track your goals, big and small... and see how changes you make today... could help put them within reach. from your first big move to retiring poolside - and the other goals along the way. wealth plan can help get you there. ♪ j.p. morgan wealth management. explore endless design possibilities. to find your personal style. endless hardie® siding colors. textures and styles.

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shery: we are headed toward the japanese open. nikkei futures higher by .5% and the japanese yen holding a just a touch below that 150 level. we will be watching jgb yields us well because we saw them fall after unscheduled operations, or talking about the fifth unscheduled purchase operation since the tweak back in july, given that we saw the 10-year yield at fresh decade highs. we will continue to watch the moves as we head toward the boj policy decision next week as well. let's turn to one firm operating in japan with the real estate business across tokyo, providing green energy consulting services and running several funds. the global real estate developer reported its third-quarter results earlier the core funds from operations coming in at $1.2 billion, beating estimates. let's discuss the business outlook and strategy with the ceo of prologis who joins us in

our tokyo studio. great to have you with us. it seems like you had a great quarter, but bloomberg intelligent sinking perhaps you will see some uncertain demand going into next year as well. what are you seeing in terms of the slowing mobile growth outlook and the growing vacancies that you also mentioned in your earnings call? >> good morning, everyone, great to be with you. the earnings were strong because occupancy and rental growth were strong. where the as strong as 2021 or 2022? no, they were bit more normalized. but compared to the last 10 or 20 years, i was to consider the market to be very strong. vacancies in our portfolio are under 3% and rental growth is very significant. shery: tell us about that rental

growth, because we are seeing some trends across japan and asia in how they compare to elsewhere in the world. >> in japan, rental growth has always been less than it has been in the u.s.. i would say the u.s. is usually the highest rental growth, followed by europe and followed by japan. other smaller markets around the world have significant rent growth. for example, mexico, brazil very strong today. but interest rates are also lower in japan and in europe. so everything works in line with one another. the u.s. has higher rental growth but higher interest rates. but overall, taking the globe as a whole, i would say that 2022 was the strongest year in our history, in our 40 year history, and i would say this year, 2023 is shaping up to be one of the

better 5-10 years in our history. so the market is still very good, it is just not as hot as it was in 2022. paul: when you look at developing anything new in china, do you have any concerns about getting money out of china? >> we are in china for the long-term. the politics of money movement and other things are going to change over time. we've been there since 2003 we expect to be there. the reason we are not deploying as much capital in china today as we were before is very simple. demand in china has cooled off and there isn't as much need for new development today. but once that market comes back, we will be back on track developing and we are building a long-term business in china, just like we are in japan and europe and other places. paul: is prologis developing any data centers?

are you seeing ai drive demand there? >> we have a very large portfolio, 1.2 billion square feet, about 120 million square meters. about 2%-3% of these facilities are located in areas where the cost of power is low. fiber connectivity is high and they are very suitable for data centers. so we've developed about a dozen data centers going back 15-20 years from now. but we are really ramping up that business, given the demand we are seeing from scalars. our goal is to be a developer of data centers, but to harvest the sales of those centers and not hold them for the long term depreciation in our portfolio. we are focused on logistics for the long-term but we will create value through the development of data centers in our existing

facilities. shery: we have seen trade patterns being affected by not only the u.s.-china tensions but the ongoing wars in europe and the middle east. is that affecting your decision-making and it comes to building and developing warehouses? >> it does in the short-term, but not really in the long term. ironically, some of these disruptions, whether they're coming from more, pandemic, earthquakes, whatever the disruption is, actually creates more demand for our facilities in the short-term because the supply chains get disrupted and inventory built up at various points in the supply chain. that's why 21 and 22 were such strong years. if trade flows normalize, the demand for our facilities is more in line with economic growth, but during times of disruption, you get this additional demand factor on tougher than normal demand.

paul: the ceo of prologis joining us there from tokyo. we've got more big guests coming up later on bloomberg tv. we are live from the japan mobility show. we will hear from a nissan ceo and others. up next, a chip equipment company, japan's largest listing since 2018. details next. this is bloomberg. ♪

shery: we are headed toward the japan open and the big event today, kokusai in the biggest ipo since 2018. what are we expecting from the start of trading today? >> quite interesting deal to start trading in japan, there has been a lot of expectation about this, this is a company that makes equipment for chipmakers so the sector itself is super active. this has been a very big year for japanese equities in general and for recovery off the ipo market. we have a company that comes

from a very hot sector that priced its shares at the top of the market range. drawing attention not just from local investors but from a lot of international buyers. there was demand of over 10 times shares offered. there's a lot of expectation on how it will trade. it's hard to tell if it will see a pop or a quite good performance at first, but definitely an interesting start for this company in tokyo today. paul: it's going to be a very important day, kkr has a significant interest here. >> that's correct, because basically kkr is the one selling the shares, they're the ones that make the money out of this ipo. around 720 million dollars, that was a size of the deal and it was a complete secondary

offering. this is a very significant deal for kkr, the private equity firm bought kokosai electric in 2018 from a tall tree -- attach he at that time. it was an important investment for the american firm. throughout this period, they already made some money on their purchase because they sold all parts of the deal. there's a lot of interest in seeing how the performance from now on will go because they could even offload more shares going forward. so it will be a very important recognition of how this investment was made. if you look just at the valuation at the time of the purchase in 2018 to what the company was valued at right now, we are already talking about ¥200 billion in valuation

increase. the gains from kkr will be much higher given the fact that they already so parts of the business. it will be a very good sign for kkr itself. shery: this is the largest listing since a december 2018 ipo. will be be seeing more ipos in japan now? >> i think it is fair to say that people are very positive about the ipo market in japan at the moment. we have spoken to several bankers based in tokyo or hong kong who are following the market at the moment. one of the best markets to look at in asia in a very hard year for ipos in general, not just in the region, but throughout the globe. should we see more deals coming to the market before the end of the year or the first quarter of next year? i think it is fair to say that

yes, their chances we will see important deals. it is still a very tough market. companies are still skeptical of deals that we used to see two or three years ago when the market was completely different and interest rates read a completely different level. to panas one of the markets that should provide us with interesting deals and a flow of deals. if they're going to be huge, that's a bit risky to say at this point. paul: these are the stocks we will be watching when trade does open in korea and japan shortly at the top of the hour. these are the chip stocks we will keep an. mitsubishi motors is exiting china after its low shift to ev's, poor sales in the world's

largest auto market. isuzu is planning to start mass production of a fuel-cell truck it is currently developing with toyota. the japanese government looking to extend its utility gasoline subsidies through to april. coming up this wednesday, we will be live from japan's show, we will hear from mercedes-benz and the nissan ceo. the market opens in seoul and tokyo next. this is bloomberg. ♪

>> big moves in the u.s. after our session with those tech

earnings from microsoft and alphabet, and we have more to come, 15 trillion dollars worth of companies reporting in the u.s. this week. >> metta and amazon among those names, we are watching the ipo in japan a bit later on. keep an eye on ozzie assets in the aussie dollar. cpi coming up in about 30 minutes. annabelle: expected to take down a 5.1%. but ozzie minors a small percent as well. but the open is upon us for japan, south korea and the start of trading for cash treasuries. you mention the ipo but we are awaiting trading for the japanese chip equipment maker. we aren't seeing any live pricing for their trading debut. shares were priced at the top end of the range, ¥1840 apiece

as a way for a live pricing. it will be, what is the biggest ipo largest listing in japan and nearly five years. in terms of the direction today, we are seeing that yen is still holding very close to the 150 level. a little bit of trepidation of just investors continuing not to push in above that 150 limit given we are on that count down to the bot meeting next week. we did actually have a survey coming out this morning. 76%, nearly 80% of 45 economist saying that the bank is going to be keeping its yield curve control and negative policy settings in place for yet another meeting. a lot of focus on what sort of guidance we get from 08 as well. the direction for stocks today. you see the nikkei two to five coming online to the upside. really, the focus for investors today is going to be those tech earnings that came out, then also it came through from china. mention the stimulus measures, the moves in the ozzie minors.

support coming in from the chinese economy. let's change on because the start of trading is also coming through in korea. at the start of the day we are watching those tech stocks and particularly. you can see the cause? holding fairly slit -- holding fairly steady. the nasdaq is in negative territory. it really was that story of mixed signals coming through from pig -- from big tech earnings. alphabet thinking post-market. microsoft jumped. other names, including texas instrument. watching the chip link names in particular. else we are watching because it is that focus learning. in the wind that reported yesterday after the close. we are watching how that comes online. a little bit weaker as we get underway this morning. but its third-quarter consolidated earnings did miss is -- did miss estimates coming through from analysts. let's change on because australia is one hour into trading. i mention the author minors. materials are up one point 6%.

the gains we are seeing for the asx 200 into the second day higher. oil as well because brent crude is coming back below that $90 a barrel level. we are just continuing to track those moves and oil given what's happening in the middle east. paul, the focus in the session does appear to be coming straight down for what happened in china. paul: let's talk a little bit more about china stepping up its support for a struggling economy, issuing additional sovereign debt. that came on a day when president jie zheng peeing also made a rare visit to the central bank. let's bring our chief north asia correspondent stephen engel in hong kong. this is the big intervention that we've all been waiting for? stephen: it is something that has been speculated for a couple of weeks. the scoop of raising the deficit ratio. that's what state media has

revealed after a two-day meeting of the national people's congress that came out with a number of people's moves including new sovereign debt to be issued, and to go into some infrastructure projects. hopefully put a floor into the dating economy and into 2024. hoping it doesn't come worse. the stimulus will add half of a percent -- .5% to 2024. a trillion yuan in sovereign debt issuance is about 137 billion u.s. dollars. what it also does is alleviates the burden that is usually placed on local governments. when the marching orders come down from beijing to deliver growth and to essentially

further add debt loads at the local level, this time around it looks as though the central government will shoulder some of this step burden more than in years past. that's been a common theme with xi jinping. it does not want to exacerbate the debt levels, obviously at the global level but also property developers and the like. just to pick up from where annabelle left off. the market share data and it's likely to spill over to the asian market if we can see the chinese stocks have been routed in shanghai and also in hong kong. we did see the golden dragon index up as much as 4.6 percent overnight. billy billy, ali baba all getting sizable gains. at least the adrs is a positive sign, and initial knee-jerk reaction to the stimulus we did get overnight. >> we had more details on two high-profile cabinet ouster's? stephen: keep in mind we have

three new cabinet ministers in xi jinping's third term already. just a year into that third term. so the foreign minister, we know he was ousted, he was also, last night chipped of his final government position in the party as state counselor. he's gone. that's the foreign minister. then there's the defense minister, the chop -- the top general in the pla. u.n. out of public view a couple of months ago. lots of speculation, perhaps disciplinary moves. now we know he has been removed, also stripped of estate counselor position. a separate announcement as well, there will be a new finance minister as well. they will likely have to spearhead handling the debt issues at the local level i referred to before. but he might be the most interesting removal just ahead of what is likely to be a meeting between xi jinping and biden because military to military discussions between

china and the united states are in the penalty box to borrow a hockey terminology. getting that back on track is critical because the defense minister who's now been ousted was sanctioned by the united states. there really wasn't much dialogue at all, military to military with flashpoint in the south china sea, taiwan, obviously with two wars being waged internationally. this is wet the u.s. ambassador to china told me last week in beijing about the importance of getting military to military going again. >> china shut down our three principal military to military channels following speaker pelosi's visit to taiwan, which we supported 14 months ago. we believe those channels should be reopened at every level. at the working level, at the commander level, and certainly at the ministerial level. that's been our consistent position all along. the last thing we should want in this relationship is the absence

of communication that would just add to the difficulties we've had in having a straightforward conversation between our military leaders. stephen: in those announcement from state media last night about the departure, the ousting of -- no details of why he was ousted, but you can probably speculate it was some sort of party discipline, maybe some crimes committed, we simply do not know. alleged crimes. the party, the chinese government not known for its transparency of issues like this other than saying, he's out. shery: bloomberg's chief north asia correspondent stephen engel there with the latest on china. of course, we are watching japanese markets at the open right now because we are expecting coca shy electric to start trading up any moment. this is a chip equipment maker that was japan's biggest ipo since 2018. let's bring in bloomberg's

equity capital room market. what are we expecting today? >> we are expecting pricing for cocoa sigh -- kokusai at any moment. the orders need to match the price. it is actually being offered. and we have a big debut. this is a very important view, as we just mentioned, it's the largest ipo in the japanese market since 2018. that's when softbank group debuted with a gigantic massive deal. they are talking 2700 million u.s. dollars. this is a company that is a very interesting sector. they basically make it -- make a for chipmakers. they are in the middle of a

geopolitical scenario that is with all of the companies in the chipmaking industry. at the moment and at the same time they are part of a very interesting equity market that is the japanese equity market at the moment. very good participation of foreign investors. demand by foreign investors was 10 time hires in the offer of shells -- shares available to them. it definitely should be an interesting start and an important market. paul: do we anticipate this might set the tone for future ipos in japan? filipe: it will be important to see if we will sustain the rhythm to mid-to large size ipos. that since the beginning of 2020 33 times higher than the amount that was raised at the same time

last year, but last year was a tough year for ipos in japan while the rest of the world was a lot more active. there is a pipeline, we talk to bankers, we have been talking to bankers in hong kong, and they have been quite vocal that this is one of the best moments that they've had within the japanese markets as a whole in the past years. now for ipos, but also for additional shares. there is expectation that before the end of the year we should see more deals. it will be 500 million dollars close to one billion u.s. dollars. at the could start to say at this point, especially because, traditionally, the size of ipos in japan is much smaller than what we are used to seeing here in hong kong or if we compare it to mainland china, definitely much smaller. if we are going to see a flurry

of them, it's still very hard to say. paul: equity capital markets reporter filipe pacheco. joining us now is bloomberg's executive editor for asian markets, paul dobson. paul, we have been awaiting they debut of kokusai electric. what are you anticipating. paul d.: the market is enjoying a risk on day-to-day with markets because of the china stimulus. everything else in the u.s. seems to have moderated a little bit weaker, all of those different earnings, after hours. i think interestingly they seem to balance each other out from a top-down level but from a bottom-up level, this is the thing that the stock records are been hoping for, that opportunity to make a name for yourself by choosing which are the winners and which are the ones that are underperforming in

the market. so maybe people were expecting a uniform. this gives a little bit more hope that will -- that it will be a more likely and entertaining earnings season for those who are looking to do -- to diversify, not just focusing all the majors. shery: will we see a big jump in chinese assets given what we got here in the u.s. on those stimulus measures coming in from the government? paul d.: you would expected it based on what future state and based on the golden dragon. the market is taking this optimistically. it's not an entirely big surprise because i think a lot of the details were reported already -- already. now we have confirmation in the details, may be the equity markets in particular can tell you a little bit more from that. it will be equally interesting

to watch the other side of the coin, the fixed income side of the market. will the additional supply be absorbed readily and steadily i the market, probably we will need to see further in terms of boosting liquidity, in terms of monetary stimulus, may be more rrr cuts in order to keep it and take down this additional supply. that's what some of the early commentary we are seeing on that side of the market is telling us as well. a couple of things to watch out for. paul: bloomberg's executive editor for asian markets, paul dobson. still to come, hong kong chief executive said to make his annual policy address in just a few hours. expectations are high that he could unveil measures to boost the city's property sector. we will speak on the outlook of the city's real estate market. also, our exclusive interview with aiib's president on the bank's priorities for the next year. this is bloomberg. ♪

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shery: it's a big week for tech earnings, microsoft and alphabet reporting after hours. we saw a tale of two different crop -- cloud growth stories. bloomberg sue keenan joins us with the latest. we saw microsoft actually climbing because their cloud growth recovery was pretty strong. su: that was a surprise. there cloud unit really hitting it out of the ballpark in terms of beating expectations. there's a lot of demand for ai products, and that is prompting a lot of corporate clients to go back into spending mode to microsoft posting its sales growth in six quarters. we saw shares up 5% in after-hours and scaled back just a bit as there was talk of the forecast. second-half cloud growth likely to be stable. but revenue in the fiscal first quarter was 13% as cloud service sales jumped 29% of from 26% growth in the last quarter. lots of focus on ai, microsoft investing 13 billion.

openai, a partnership that has really helped catapult their software to the head of the ai race. and let's call it better than expected cloud performance as broad-based nature. let's talk about the different story, however, over at alphabet, disappointing results. they are on the cloud front overshadowing across the board beaten in other areas. overall third-quarter revenue really came in relative -- well ahead of analyst estimates. but for alphabet, investors were focused on what was going on with that week performance in cloud. shares were down some 6%, investors the king at the cloud business to drive company growth and the fact they be on revenue and profit for the cloud business raises concerns about its positions in a market that is critical to its future growth. an analyst at investing.com sessa puts it at risk of falling further behind competitors offerings. the shares fell as much as 7%

for trading. third-quarter sales export their payout. the billion ahead of estimates, but again, investors looking at the cloud. on the media call, the ceo and cio talked about why customers are looking to cut costs. she called a cost optimization. so customers really cutting back explains the weaker cloud story. she noted this stability and surge and resilience of youtube, which was a strong point in the resilience this quarter. it's notable that ad revenue jumped 44 billion in terms of search advertising, and that beat estimates. shery: bloomberg sue keenan with the latest on those tech earnings as we also had towards metta and amazon results later this week. this is bloomberg. ♪

shery: hong kong's leaders expected to announce measures to boost the property market and reinforce its status as an international financial hub. in its annual financial policy later today. let's bring our next guest who says there's a mixed in hong kong's real estate sector, but the retail remains resilient. had a valuation and advisory services at hong kong. great to have you with us. is this because we are seeing more shoppers, more tourist coming back to hong kong? tell us a little bit more about the strength of the retail sector. >> the retail sector we are expecting a percent of the rental growth. the main reason is because we have such a low basis last year. if we talk about rental performance pre-pandemic in post-pandemic, we are still at the -65%. so 8% growth seems erosive, but

if we compare the absolute number, we are not there yet. we do have tourism coming back from mainland china and overseas, but unfortunately outflow of tourism is more than inflow tourism. so we have to see how that will play. shery: we do have a chart on the bloomberg showing that we have 4 million daily visitors from mainland china, but really still a fraction from that peak we saw in 2019. we have seen the government campaigning on the retail sector to bring back tourism, to bring back domestic spending as well, how much do you think that has helped, and what do you expect from the announcements today? quakes the tourism market, i think there will be some slow recovery. mainland china stores just open in march, and international tourism was allowed just a month ago. so we still need to see, in

terms of asia, only thailand was able to reach pre-pandemic level of tourism arrival. hong kong expected 80% of pre-pandemic level. that's already good performance. say are filling up in the occupancy is in performing well, so we have to see a lot of the resources of tourism, festivals and music and also the concert. i think that will happen gradually, but i think we have to see next year. they mainland china economy is here. so where are they able to come out to spend enough money? that is a policy we are relying on. i'm nervous about talking about the policy address in few hours time, there are two major things i want to bring up. one, the market was voicing a lot about the stand duty. we have a special duty, which

limits the speculative activities within the market. it was quite effective since 2010, but unfortunately with a high interest rate and slow economy growth, i think now is a time to move those to activate the market at this moment. shery: morgan stanley says that the real estate sector in hong kong will actually continue to see a price on 42024. what do you think? >> hong kong residential market correlates with the housing indexer stock performance. we have to see how that would play. but at this moment, the market is really tight. we have quite limited buyers in the market in terms of a pool size. so we expect that the market will still decrease by 5% to 10% next year, but wet matters will

depend on the announcements today, and also the interest rate, how they would play a little bit of a slow down in terms of the increment. shery: of course the issue with hong kong is also the broader slow down in the region, especially when it comes to the manufacturing side of things, exports, trade, what do you expect from the industrial real estate? >> industrial market has been quite resilient within hong kong , we do not have an actual manufacture or agriculture business, so a lot of the things rely on exporting. so china market lays a very important role for our export and import. in terms of import figure, in august we were looking at -13%, which was a quite significant growth. and since last year, 2020 through -- 2022, we were constantly having enough in

terms of import and export. that will bring the slowdown of those, and we are expecting a gross rental within this year. and then slight growth for next year. shery: we await that address by the hong kong chief executive, we are also watching the start of trade, the trading debut of kokusai electric opening 15% above the ipo price, you want to be able to provide your child with the tools or resources they need. with reliable internet at home, through the internet essentials program, the world opened up. fellas, fellas. that's how my son was able to find the hidden genius project. we wanted to give y'all the necessary skills to compete with the future. kevin's now part of this next generation of young people who feel they can thrive. ♪ ♪

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paul: breaking news out of australia. cpi numbers for the third quarter looks like a narrow beat at the moment year increasing 5.4%. the market was looking for 5.3 percent. still a slowdown from what we

saw when we had 6% in the second quarter. the trimmed meme was at the reserve bank of australia watches is a beat as well. increasing by 5.2% on year. again, the market was expecting 5% even though that is a slowdown from what we saw in the second quarter. look at that move in the aussie dollar. a big increase there. 6388 versus the greenback now. we did hear from michelle bullock in her speech last night. the rba governor saying more rate increases might be needed to tame inflation. certainly on the basis of these numbers that we just received, looking like a distinct possibility for november. chief rates correspondent for asia and m live contributor garfield reynolds joins us here in sydney. a beat there on cpi. what are the implications for the central bank now? garfield: the implications are that it's going to be a very tight call, do they go or do they not go? rates markets on the currency

are responding very much as though i think it's a better than 50% chance that they will move. they were pricing about a 40% chance, so they were saying what could happen now, that's probably going to build towards the base case, even though it's a tough task to immediately say do they hike or don't they. it all depends on how these numbers work with the other things that are going on in the economy, where the rba's own economist put together their forecast. if they come out and say, ok, this means if rates stay where they are, we won't get inflation back to target within the timeframe that has been outlined by the end of 2025, then they will hike. if they say, it's still possible , they might hold, they might not. vote: chief rates correspondent for asia and am live contributor, garfield reynolds on the hotter than expected inflation numbers. what has a market reaction been?

annabelle: we are taking a look at kokusai electric. share starting to trade. this is for the chip equipment maker that was purchased or spun out of the hitachi kokusai electric in 2018. now this company has been made public so shares have been priced at the top end of the range ¥1840 a piece. you can see the are trading around the ¥2100 mark. so a huge jump here. kokusai electric making its trading debut in the session. this is the largest listing in japan in about five years and chips, japan a leader in chip equipment manufacturing devices or tools. on top of that, there's a lot of concerns around chip equipment generally. we are seeing a lot more regional collaboration between the likes of korea, japan, taiwan, really seeking to counter china's ambitions. kokusai electric is the trading debut and we are seeing a huge

pop at the start. let's change on because we still see chip sector or chip link stocks and focus. we had texas instruments issuing a week forecast. we did see that stock really hit in after hours but not translating across the chipmakers in asia. let's change on because the other focus in the session, there is earnings but also what's happening in china. and we did have further stimulus measures or support measures coming through, so they will issue more debt. they will be raising the budget deficit target. president xi himself visited the pboc, and that was for the first known time. mining stocks, unsurprisingly, you see those moving higher. let's just change on. consumer discretionary, another discussion to watch. this is the sector that's leading the moves for the msci asia pacific index so far this morning. paul: thank you. the asian infrastructure

investment bank is partnering with the cop 28 presidency to accelerate clean energy investments in asia and beyond. the bank announcing plans to triple its climate change landing by 2030. joining us exclusively in sydney, president at the asia infrastructure bank. thank you so much for joining us today. i just want to ask you to start off, what are your priorities for asia heading into 2024 in terms of infrastructure? >> what is important for asia infrastructure investment bank is to work with our peers, such as world bank adp to push for the transition to net zero. in this time we are very much closely walkie -- working with cop 28 presidency to accelerate the whole process. as you mentioned, we have the corporate strategy, which is set the target of more than 50% of the finance for director climate change, financing by 2025.

but we already see to that. in 2022 hour approvals for financing climate change mitigation is already 56%. so we are moving on this. we understand it's not alone for us to work by ourselves. we have to cooperate. with all of these member countries we are very much devoted to climate change. paul: you did talk about the need for reform and climate project financing. what sort of changes can we expect to see. >> it focuses on infrastructure investment. our idea is to build infrastructure for tomorrow, which means the infrastructure investment projects are not to be designed, implemented, maintained in the same way 20, 30 years ago. we would have to design infrastructure projects, which are conducive to climate change mitigation adaptation, for instance, we finance the mass

transit assistance, transportation us -- system instead of having people drive their individual cars. financing renewable energy so that we can face out for those countries. coal in the immediate future and also in the future, we should really achieve net zero for a number of countries which are struggling up this moment. we need to give them technology, financing, and working with all of those countries who are deeply committed. shery: are you concerned about a potential delay in the energy transition drive around the world as we continue to see geopolitical uncertainty from two wars ongoing in europe, in the middle east, and what that would also mean in terms of energy costs rising, materials cost rising, what are the implications for your bank? >> i think all of this, we have all the more important job to

push forward, transition towards net zero. the geopolitical tension certainly is in issue. a lot of countries will have to grapple with. but as a development bank, as in a political development institution, our job is to stay the course, working with all those countries for accelerating the transition to net zero. for the time being, a lot of people affected by the high energy prices -- as you know, aids very much to difficult to balance the need for increased demand for power and also the increasingly urgent tax of climate change mitigation and adaptation. we, in the multilateral bank do is to stay the course and help all those countries. moving faster towards net zero. shery: to your point on political neutrality, the aiib

has received neutrality from the canadian government of interference from the communist party. can you give us an update on where that is given that canada has frozen activities with the bank. do you expect them to leave? >> weed, as you know, uphold the governance of international institutions. we operate by best practice. after the the incident, we had in internal review with external advisors. the conclusion was there for everybody to see and we are confident that as so many countries, so many of our members are confident in what we been doing, and i think it's very much important for all of us who have any questions to look at the conclusion of our internal review about this incident. shery: in fact, you have

approved several new members last month, right? what are you expecting in terms of changes in your membership, more additions to come? >> we have 109 members from all of the continents. i think this demonstrates or testifies to the fact that this has -- this bank has been following international best practice upholds high standards of governors who will welcome back. the membership increase indicates that what we have been doing is right, and it will need to continue to do the right thing for all of them. i don't allow a possibility that some other countries will be joining. our job is to remain focused on asia, but without forgetting about the need of the countries known regional members. because the global community lives and works together, and we cannot to leave out those countries who need the financial

and technical support from the banks. that is why we are working in close collaboration with the world bank, adb, edr b, and we are also trying to work with inter-american bank and african bank so that we can work together as a system. shery: always good to have you with us. thank you. we have more to come on "daybreak asia". this is bloomberg. ♪ to find your personal style. endless hardie® siding colors. textures and styles. it's possible. with james hardie™.

shery: you're watching "daybreak asia", chinese president xi jinping has stepped up support for the economy, including issuing additional sovereign debt and raising the budget deficit ratio. earlier we got insights into these measures from the former deputy governor of the pboc in the current chairman of the national institute of financial research at singh why university. >> it's not that bad. i think it's slower by nature, number one, but number two, we need to be more on the structure base, not over general stimulus. there's a reason there are structure issues. we want to make sure it goes to this area, not into real estate. this is very much in earmark to stimulus where we gradually get into real estate where ar, climate change helps.

>> we see china having a very high data already, so is this targeted enough to compound those issues? >> that's exactly the point. it's high already. 80% of gdp. so there is a huge oversizing general stimulus. it has to be sick tori in earmark, the clear structure of the stimulus. that's the whole purpose. i think the impact will be big for the change issue, renewable energies and the battery storage is on all of those sectors will become the new competitive sectors. stephen: stephen engel here, great to see you again, you are in new york, part of a team that is going there to improve. a lot of people hope, relations with china and the united states. there could be a summit between

xi jinping and biden in november in san francisco and the sidelines of apac. what's your key message? >> the key messages, whatever happens in the end, china-u.s. will have to live and work together, and the people share a lot of things in common, that's the future for all of us. stephen: the two natures -- nations are clearly strategic competitors. there's a lot of skepticism weather on capitol hill or within the biden administration about china's intentions. we know about the export controls and the limiting of exports of advanced technologies like chips to china. what is this going to do, is this going to be the overhang on the relationship, because you talked in davos. i saw your panel, you set the chip restrictions are going to backfire on united states. it's going to accelerate china's advancements and chips, and it's going to eventually flood the

market with chips and be counterproductive. is this the message you are taking to commerce department officials in america? >> the key issues were in some way but we will have to work together in so many other ways. we have to understand both things. in the technology side, the u.s. will have its own advantage. china will develop its own technology as well, we will see, but we still have to work together. i think it was such a big chance. you need so many countries, so many companies involving the whole supply chain production line. that way nobody can do the price. so we still have to work together. paul: that's the chairman of the national researcher financial research speaking to us earlier. chinese stocks poised for gains as beijing wraps up measures to

support the economy. let's bring in our asia stocks managing editor. how are investors taking that news? >> just a rare move to revise the fiscal deficit mid year. the message is very strong. this will likely provide a floor for the stock market slump that we solve recently. some of the immediate beneficiary investors are talking about the likes of infrastructure starts, as well as of string building materials. if you look at the timing of the stimulus, it's quite interesting. the boost came at a time when the shanghai compass it was about the break through the 18 year trendline, which is a very psychologically important level for domestic investors. but if you look at the immediate reaction, yes, the golden dragon index had a pop of 4% overnight. but in the medium-term, the process of amending investor sentiment will likely take time as some of the investors already pointed out, that the pessimistic narrative about

china's domestic equity market may not reverse until well into next year. shery: bloomberg's asia stocks managing editor. if you missed any part of these conversations, tv go is your function. you can also dive into any of the securities are bloomberg functions that we talk about and become part of the conversation by sending us in stem messages. this is for bloomberg subscribers only, check it out at tv go. this is bloomberg. ♪

shery: wall street bankers are pessimistic about this years global economic outlook as monetary policies and geopolitical tensions way on sentiment. they spoke with blue break as a future investment initiative in saudi arabia. >> what we're seeing around the world today, as we go into the elections that we will see in the united states, which are going to be over ill reconcilable differences about wealth and power. then we look at the geopolitical situation and then we look at the climate issue. the climate issue is going to cross us, it's estimated between 5 trillion and $10 trillion a year in a world gdp that produces 100 trillion. anyway, i think that those five

big forces, as we look at, if we look at historical perspectives, i think that will help us. i think we have to be concerned about that dynamic. >> put it simply, for next year, are you optimistic about the global economy or pessimistic? >> pessimistic. pessimistic about it. but, you have a political monetary, you have a conflict type of environment. at the same time, you have the greatest invent in this. you talk about this fabulous technology that has so much potential to produce wonderful things, and then it could be a problem. so if you take the time in the monetary policies that we are going to see, it will have greater effects on the world and you look at the world gaps, it's difficult to be optimistic on that. and i think now, the real issue i think is how we deal with each

other. it was said earlier very well, peace, if we can keep the peace, if we can have a healthy, competitive environment without having a war with each other, we will be in good shape, we will make adaptations. >> janie diamond, you have lead for more than a decade, most profitable market cap bank in the world, j.p. morgan, so are you optimistic about the economy going forward in our u.s. obsessed as many people are in the financial world about whether the fed will increase interest rates again are cut interest rates doesn't make that much difference to the economy as you see it? >> i'm an optimist, you would be foolish not to look at the things taking place today in the ukraine, middle east. my heart goes out for ukraine, but also, it's affecting oil, food, food prices, gas prices,

migration, potential starvation. it's probably the most serious thing we face. the most serious thing facing mankind is usually proliferation. if we are not sitting here 100 years from now, it will be nuclear proliferation, not climate. i think when you look at the geopolitical situation, as complex as we seen it since 1948 or 1938. we all hope it goes away. i think it's a little bit of which both -- wishful thinking. david: larry runs the largest asset management firm in the world, blackrock. do you see a tidal wave shifting to fixed income investments from equity investments, and do you think that will continue for quite some time, or do you think it's not the tidal wave and people are basing equities as much as they did before? >> thank you for being here, it's always great to be in the kingdom, as jamie said, the transformation of the kingdom the last seven years is totally heartwarming. i also just want to echo as

capitalists, as business leaders, we all have a responsibility to speak a little louder today in a polarizing world, in a polarizing world where we see terrorism, we are watching two wars and here we are trying to talk about higher bill and make it a better world, and so we also have to then focus on the unpleasant parts of what's in the world for better growth. we all have to be better humanitarians and we all have to be more focused and i want to make sure that the political side of the world understands that peace and prosperity does work a lot longer and does shape when you elicit more human beings to create a higher class of standard living and it actually creates much more global problems for the majority of the world.

we are going to see higher interest rates for longer this reminds me of the 1970's. i think some of us were trading in the 1970's. and the 1970's was all about dad policy. today it's about that policy again. paul: top wall street bankers speaking with the cofounder david rubenstein at the future investment initiative. let's see what's going on with the showing in assets at the moment, because we did have that harder than expected cpr print for 4.5% for the quarter that trimmed 5.2% both of those exceeding expectations. we seen the three year yield jumping to 4.276%. that's the highest we've seen it since 2011. meanwhile, november 8 height now

jumping to 17%. so odds are on that the iba will move rates higher again at its next meeting in november. we did hear from the rbi governor michelle bullock last night, suggesting that there very much could be a possibility. big move in the aussie dollar, 63 .88 against the u.s. right now. we are counting down to the open of china markets as well. we did have a little more movement and a little more stimulus. we will see how markets react. also hearing from mercedes-benz ceo as well. ♪ avalarahhh ahhh ahhh ahhh

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>> good morning, 9:00 a.m. and hike on. -- in hong kong. >> our top stories.