>> you are watching from new york, sydney, and hong kong. we are counting down to asia's major market opens. >> australia has just come online. apple sales are slipping for a fourth straight quarter. a shaky slump for the market in china. asian stocks are set to bask in the post fed glow after wall street's best day since april. traders now await friday's jobs report. plus the challenges facing australia's prime minister on his first official visit to china. >> we have the asx 200 just coming online. you can see at the outset higher for a fourth straight session. this is about the reaction to the fed and the decision not only to halt rates, but the press conference and the signals we had that perhaps the fed could be done with hiking in the current tightening cycle. that is leading the direction for stocks. the question is how much that

will hold given that we are starting to see u.s. futures drift lower. apple numbers as well. we are also attracting other central-bank action. yields are being led by the boe. you can see moving lower their. also in new zealand you have the two year, the 10 year drifting downward. that's following the boe which also held rates -- did not signal a cut was on the way, stayed a little bit hawkish, but still one to watch for us. what else we are watching is the japanese yen. japan markets are shut today so we will have no trading, but still very much in focus given we are continuing to hold above the 150 mark. >> look how u.s. futures are trading. we are seeing downside pressure after we saw risk on session for wall street today. the s&p 500 topping is 200 day moving average seeing its best day since april. we've been watching the

treasury's space looking pretty mixed because we have the long-term yields again extending declines, but the two-year yield still headed higher toward 5%. we are very much watching the numbers on jobs coming up friday, nonfarm payrolls. today we had data showing weekly jobless claims rose. but perhaps another factor helping the federal reserve, the fact that u.s. labor productivity expanded the most in three years. we are producing more with less input, perhaps better economic performance, perhaps helping tame the inflationary pressures. we are seeing oil extending those gains we saw in the new york session. it was a broad risk on session today. perhaps the mood being dampened as we are watching apple under pressure. we are now seeing in the outdoor session, the stock losing 3%. they again reported sales

falling for a fourth consecutive quarter. for more on the results let's bring in our chief technology correspondent mark gurman. how much weakness came from the slump in china? >> it is interesting. apple only declined in greater china by about 2%. there was a slowdown there. that is in line sort of with what the rest of the company saw. on a year-over-year basis apple did decline about 2% to 3%. what apple is saying on the call is the decline really comes from the mac and the ipad for a number of reasons. they are saying this has to do with pent-up demand. obviously they are not getting this time around. there have been no new ipads for the first time since 2010 in this year, so china, it is making the headlines.

definitely concerns their. but it is not as bad as it could have been. they did come in about $2 billion below our consensus from wall street. >> what were the bright spots? obviously, this shift in priority to the indian market, is that paying off? >> it was a bright spot. apple said they set an all-time revenue record in india and an all-time record for iphone sales. not surprising given the investment they have put into india, to retail stores, sales channels, upping their operations there. the other bright spot is the iphone overall. they came in a hair above wall street expectations. they did see growth on the iphone which was to be anticipated given demand for the 14 pro last year was high but supply was very low given to covid related shutdowns. foxconn around this period last year.

they did get set up for an easy compare. one bright spot i would point out, services, they reported all-time revenue records across the board. they want to make more money from the business raising prices significantly on apple tv+. as well as apple news plus. those price changes come into effect on the next billing cycle. >> what did we get on generative ai, the talk of the year? >> tim cook has talked to the party line. basically equating generative ai and chatbots and more advanced ai technologies from amazon, microsoft, and google, to more traditional ai we have seen from apple for a decade now, saying features like the ecg monitor and the apple watch, crash and fall detection on the iphone and apple watch, saying those are example of ai, but that is not really true. tim cook is being asked about generative ai, competitive to -- competitors to alexa.

what bing has been able to do. he says apple is investing tremendously in that area. i wrote a couple weeks ago that apple is planning a big generative ai push for 2024 including adding features to many of its core apps. competitors microsoft word and powerpoint, they are using generative ai for child support for helping people in applecare -- chat support for people in applecare, managing product and logistics. they are going to push ai across the board including two apps -- including to apps. >> mark gurman giving us the details. when it comes to apple earnings. bell suppliers will be watching as the asian session gets moving but at the moment we are focusing on mcquarrie. >> apple supply one to watch, mcquarrie bank traded in sydney, big lender coming online,

reported its earnings. in the first half we saw net income missing estimates. a few different factors that are being cited for that. firstly fewer asset sales. there's also weakness in the commodities and global markets business. two reasons behind that. the numbers that came in, essentially net income just over 1.42 billion dollars in the six months ending september 30. analysts have been saying around 1.7 billion. this is all aussie dollar's. the company is planning a share buyback of 2 billion aussie dollars, 1.3 billion u.s.. so far the stock you are seeing, it is continuing to trade lower here. >> investors and broader markets continuing to watch geopolitical risks as well when it comes to war in the middle east and gaza's death toll rising as israel intensifies its ground offensive against hamas.

we know there will be more discussions between israeli officials and secretary of state antony blinken shortly. has the tone changed? will the tone change? >> it is difficult to say from your. -- from here. israel has now it says surrounded gaza city. the death toll is rising. it is above 9000 now and even in australia we heard the prime minister yesterday urging israel and perhaps even warning israel to defend itself or to deal with this issue with minimal civilian casualties. we have seen the left-wing governments in south america calling ambassadors or cutting ties. there is a lot of worry about this. in a sense, it sounds very cynical to say, but this is what iran and hamas were sort of wanting.

part of the ideology was to provoke massive response from israel. because of the nature of the gaza strip you will find you cannot not have huge civilian casualties. that creates a lot of enmity toward israel. it is issues like trying to forge a relations with saudi arabia, that has all fallen by the wayside. there is so much outrage. the civilian toll. we are certainly in an interesting period. whether it is a turning point i am not sure yet. >> we saw $14 billion of aid to israel passed by u.s. house republicans. but it does not look like it is going to go anywhere else. >> that is right. the senate has made it clear this is a nonstarter for them. the white house has indicated even if it came to them, without the cuts to the irs, which are

supposed to fund the package, it would be a nonstarter. everyone seems fairly determined. the levelheaded people among u.s. lawmakers are determined that ukraine and israel are part of -- they are allies. they are both deserving of support. the idea of closing down support to ukraine but keeping it strong for israel is not going to fly with them. there is too much at stake here. i have mentioned before previous day is this also is linked to support for taiwan. the white house, the initial proposal was -- the administration, the democrats, a lot of republicans, the levelheaded on's, would be wanting some version of that. supports all three of those causes. >> the chinese prime minister calling for a truce. very reasonable thing to say.

is there any potential for a cease-fire at this point? >> i do not think so. >> you have talked about the domestic challenges within israel. >> this is a war. at the end of the day once you take this step you really just have to put your head down. if you are a country like israel. you put your head down, you take the blows and the criticism and you fight your way through it. pause just allows your opponent to regroup, reorganize, and you want them on the back foot, you want to keep them like that. as to brief stops to allow civilian -- sorry, to allow hostages or civilians out or injured people, certainly that is an option but the idea of a cease-fire is premature. >> bloomberg's michael hate with the latest on the israel hamas war. anthony albanese said to walk a fine line when it comes to trade, the first australian leader to visit china in seven

years. first, state street global advisors, a look at their conviction calls next. this is bloomberg. ♪ the chase ink business premier card is made for people like sam, who make- everyday products, designed smarter. like a smart coffee grinder, that orders fresh beans for you. oh, genius! for more breakthroughs like that- i need a breakthrough card. like ours! with 2.5% cash back on purchases of $5,000 or more. plus unlimited 2% cash back on all other purchases. and with greater spending potential, sam can keep making smart ideas- a brilliant reality! the ink business premier card from chase for business. make more of what's yours.

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>> not a lot of movement among 10 year yield below for 70 but really the shorter end two-year yields still pushing slightly higher toward the 5% level. we have really different calls on where yields are going. k2 asset management addicting the benchmark 10 year yield will rise back to 5%. our next guest, highest conviction call for 2024 come duration u.s. rates. let's discuss where the opportunities are with lori heino, global ceo at state street global advisors. great to have you with us. have we seen peak rates or should we still go higher from here? lori: well it is not about whether we see peak rates or not. the trend is definitely to go

lower over time. we think the central bank has done its work in terms of slowing the economy and starting to get inflation under control. as we do our 2024 outlook our highest conviction call as you noted is that we do think rates are going to be trending lower. dipping into these levels is quite attractive for investors. anna: we did not -- heidi: we did not hear a change in powell's commentary aside from higher yields helping with tightening financial conditions. we kept hearing him say the committee was moving carefully. what does that mean? are we going to see cuts anytime soon or are we holding higher for longer? lori: let's remember, the fed was a little behind the curve when it came time to tackle inflation. it does not surprise us at all they would be more cautious in terms of taking a stand they are

done. i think he's going to use language that keeps them more focused on the ongoing data environment, making those decisions in real-time. that did not surprise us at all. it is our view they are done however. we thought for a while even the last rate hike may have been more than what was needed to bring inflation under control. we see a trajectory whereby the end of next year they could be in cutting mode because they have a growth rate that will have inflation levels that will not be commensurate with a 5% plus fed funds rate. haidi: would that mean more downside pressure on the u.s. dollar despite the fact we continue to see strength right now? lori: well it depends. one of the questions is always what's driving those moves. clearly part of it is the u.s. is slowing more rapidly than other parts of the world and interest rates are higher.

you should see lower dollar. as we have seen over the past several months, geopolitics still matter. the dollar is a safe haven asset. it is hard to define where that goes exactly. we do think the longer term trend is that the dollar goes lower. the next six to 12 months it is going to be data-dependent. shery: does that mean more market volatility? if that is the case, are you really positioning with a bigger cash allocation? lori: that's absolutely right. [inaudible] is going to be -- growth is slowing. that is going to weigh on equities. we think earnings might be optimistic against the backdrop for that slow. certainly rates will be lower but it's not going to be a straight line. we are hoping for more than --

we are holding more than typical levels of cash. shery: does that mean you prefer larger caps within the u.s. then riskier bets overseas? lori: it does. we have been overweight a little bit on our equity portfolio. we have been barbelled, -- barbelled holding cash and equities. the u.s. is benefiting from things including the inflation reduction act and the chip tax putting money to work soon. if we are going to be in equities we want to be those places where there is quality and tailwind against of slowing growth trajectory. shery: how closely are you watching the payroll numbers and what are your expectations? lori: we are not worried about it in the sense that the good news here is that the fed already had its meeting this week and there's going to be more data between now and the next meeting.

if we get a big surprise one way or the other, we could see short movements. the core thesis is we are slowing. the inflationary pressures are coming down. shery: good to have you with us. lori heinel at state street. terminal subscribers, go to dayb . you can customize your settings so you get news on the industries and assets you care about. this is bloomberg. ♪

shery: watching australian banks with a focus on mcquarrie with first-half profit numbers being dragged down by fewer asset

sales. we saw weakness across commodities trading and of course across global markets. mcquarrie softer but we are seeing westpac and anz trading higher. let's get more from our finance editor adam haigh. in the thick of these earnings. what was disappointing for mcquarrie? >> the market was prepared for a soft number. mcquarrie warned things were going to be substantially down. that's really what we've seen. we have seen in the fact asset sales have not been as big as they were this half last year. but they do look like they are ready for the second half of the year. that is more optimistic going ahead. there is that element. there's also just the fact commodities and global markets business, had such a stellar record blowout result. it has almost normalized. it has come back to levels you would expect.

slightly more subdued volatility. that business has not done as well. people were relatively well prepared. what we are seeing so far, maybe these numbers are slightly off the consensus estimates but not by a huge amount. the one thing they have delivered to investors that was a decent surprise was the $2 billion buyback. they are able to do that and still have the capital position at 10.5 billion australian dollars. clearly the balance sheet is looking reasonably robust as we go into a period of relative fragility for the global economy. >> does that mean we are going to see weakness is reflected in other bank results as well? >> perhaps. but of course mcquarrie's business is very different to the rest of the businesses in the domestic australian banking landscape down here. one element where they do have competition down here is of course the home loan business.

mcquarrie seems to be doing well. incrementally taking a little bit of market share but still a very small player overall. for the rest of the banks that is going to be the big thing to watch next week. he is really how much of the home loan business is starting to look tricky now going into next year and how much of a decline in net interest margins are we seeing relative to expectations. that's really where the focus will be. >> how much has it been an impact of where the rba is and how much further there is to go? >> it depends if you are a believer in the peak rates argument and whether on the one hand, as that pertains to a global markets business, you get less volatility with rates pretty sticky at a higher level, perhaps there is less on the trading side to benefit from. from the consumer sentiment point of view, as that works its way through into the housing market, there is still not

enough to really think you have a big decline in the housing market. australia's housing market looks like it is pretty much act the records we saw of yesteryear. in that sense it is a reasonably benign environment which would suggest the banks can do well. the one key caveat is that competition remains fierce especially in the home market. >> adam haigh with the latest on mcquarrie. other results we are tracking, indian billionaire adani's flagship firm has reported a 50% drop in quarterly profit. adani enterprises net income fell to $27 million in the quarter through september as revenues from coal trading shrink. revenue and cost both plunged 41%. the results highlight an uneven path for the conglomerate as it seeks to move past a short seller attack back in january.

tata motors quarterly income lower than expected. net income of $42 billion compared with a loss of 114 million a year earlier. that's four straight quarters of profit following a run of losses back to the start of 2021. the company says it is optimistic about demand despite what it described as an inflationary environment. more to come on daybreak asia. this is bloomberg. ♪

shery: rate cuts from the bank

of england next year after policy makers cap rates on hold again. andrew bailey has other ideas, saying that it's too early to think about easing with inflation risks still to the upside. >> inflation down to the 2% target. we made a lot of progress this year. i believe we will make more progress in the rest of the year. we still have a long way to go. we think policy is having a restrictive effect at the moment. i'm afraid we will have to maintain this stance for an extended time. >> what's an extended time? a year, six months? how do you make that language work? >> what we described on the report is really, we took two approaches. one is to tighten the market curve, as it was a week ago. that delivers inflation coming back to target on the two-year horizon. we also took a constant rate

path, maintaining it throughout the next three years at the current rate. that brings it back a little bit quicker but there's not much between them. the key point here is, we will have to maintain this stance to be assured that inflation is coming back to 2%. >> the point is that the market forecast, which has cuts priced into it, it does have a cutprice in get that gets you to a situation where you have inflation basically back down to target within two years. it significantly reduces the risk of a recession. isn't that therefore the most probable outcome when it comes to the interest rate path? are you pricing in one cut during that horizon? >> neither of those two paths have a recession in them. they both have subdued growth. >> reduced risk of a recession. >> slightly reduced. it was only 25 basis points different between the two.

there's not much between these paths. that supports the story we are saying. we will have to maintain this stance for an extended time. >> why do you need to reiterate that so strongly? the language is a little more hawkish. >> two reasons. one is because we still see the risks to inflation on the upside. for the moment. it's important for that message not to get lost. there are several reasons why we think that. risks are still on the upside. secondly, everybody is starting to ask the question about cuts. in a way, i think we have to lean against that. we have to maintain restrictive policy. >> let's come back to that. everybody is starting to talk about cuts. you are saying you need to lean in on that. >> i'm not leaning against the curve. frankly, there wasn't a lot of

difference between those two views. >> would you want to lean on that? >> if the market has taken a few that we are leaning towards more cuts, i'm afraid that i will lean against that. shery: andrew bailey speaking to bloomberg's guy johnson. it was that boe hold that led u.k. bonds to gain ground, leaving a global rally. what we see? >> that's right. we saw bond advancing, yields moving lower on guild. that fed across the treasury session on wall street. in the early parts of trading today, you are seeing it reflected in the aussie 10 year. all of these are trending lower here. it's a reaction to the bank of england, electing to keep rates on hold, not wanting to engage on the prospect for further cuts . we just heard there that they

are being anticipated already by market participants. in the session today, we had that lower move in yields. so that is supporting the outlook for equities in the session. it's a day to reaction to the fed indicating that the end of the tightening cycle could be insight or have passed. stocks wise, the asx 200 into a fourth straight day of gains here. we will be watching to see if i can hold throughout the session. apple numbers out after hours today. the first half revenue forecast disappointing. so you've seen u.s. futures starting to trend a little bit lower here, continuing to decline in after-hours trade. central-bank action and you have the earnings that are due. shery: qantas executives and board members are bracing for a fiery annual general meeting on

friday. shareholders getting the opportunity to vent their anger of a series of scandals. paul allen joins us with more. what's left of the qantas leadership could be at risk. >> that's right. we've had a number of leadership members see the writing on the wall. the ceo went early. the chairman, expected to face calls to resign at the agm, obviously saw it was coming and he's going to step down but not for another year. three other door -- board members have announced their departure as well. tom sampson up to renomination. one proxy advisor has said to vote against him. the australia council wants to vote against them. his head could be on the block. the renumeration report is going to be an interesting vote as well. as you say, this is an opportunity for shareholders to eyeball the board and make them squirm over a series of on constable scandals. >> part of that drive to rebuild

the reputation. what else are we seeing them do? >> it's an interesting situation. publicly, we've had a lot of apologies. other things suggest they will go down fighting on some of these issues. take the australian consumer commission suing qantas over the ghost flight scandal. this is where qantas sold tickets for 8000 services that it knew had already been canceled. qantas looking back on this when this kicked off, saying, they don't know what it's like to run an airline. this is standard practice. it looks like the stage is set for a court battle. firmly in the domain of denials air. at the same time, the likes of alan joyce resigning and all these other me a cope is going on. it's like, which is it? this morning, we will have

another result as well. a court will hand down a decision on discriminatory conduct at qantas. the hits keep on coming. the share price suffering as well. shery: that agm this morning, other corporate stories we are tracking this hour. modernity tumbling after the company expects revenues to fall sharply next year to below what analysts were expecting. revenue falling to $4 billion next year. vaccine's hit the market. moderna's ceo told bloomberg that higher rates are adding pressure to the biotech industry. >> the environment for biotech is hard right now. as long as the long-term rates stay high, biotech is quite risky. very different capital than when interest rates were close to zero.

haidi: starbucks shares serving after revenue jumped on resilient demand. demand from the u.s. and china driving that increase. starbucks says to expect sales to rise up to 7% next year, dialing back a more aggressive target that investors have seen as unrealistic. up next, a preview of the strategic challenges facing australia's prime minister on his first official visit to china. this is bloomberg. ♪

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>> to friendship. >> visiting australia's greatest ally to becoming the first australian prime minister in seven years to visit china. that will mark a sudden change in the diplomatic climate for anthony albanese, trying -- china australian relations turned cold when in 2020 when scott morrison called for an international investigation into the origins of covid-19. china began imposing a series of trade strikes on australian exports including wine and coal. relations reaching a low point in november 2020 when a chinese diplomat presented australian reporter with a list of 14 grievances from banning huawei from australia's 5g rollout to

making statements on the south china sea. the 2022 election of the albany's government presented the opportunity for a reset. china gradually wound back the trade strikes and released detained australian journalists. australia destroyed it not to cancel chinese company land bridge 99 year lease on the port of darwin. at of this weekend's trip, he signaled he sought to build a relationship with china based on honest, open dialogue. >> cooperate where we can, disagree where we much, but engage internationally. it's in australia's interests as well as china for us to have a relationship where there's dialogue. >> even during the diplomatic deep-freeze, australia's trade with china surged more than $220 billion, driven by commodity prices. china also wants to join the cptpp trade pack which requires

agreement of all members and that includes australia. friendship brings mutual benefits. paul allen, bloomberg. haidi: highly anticipated visit to china. our next guest says australian leadership should be aware of accepting concessions for actions they shouldn't have taken in the first place. joining us now is a senior lecturer at the department of security studies. expand on what you mean by that. >> i think the major conversation these days has been about taking off of tariffs that china imposed on us to really a in 2020. i think that's a good news story for the industries that are involved. but i think the conversation shouldn't be about being grateful to china for doing something that they shouldn't

have done in the first place. we have an fta with china. these kind of trade tariffs were really punitive in response to difficult and open decisions by the australian government that china didn't like. so it's not a normal thing for countries to punish other countries using trade when they don't like what you say or what policies that you make. i think already, australia has made a concession that maybe people don't realize that much. we had wto cases on these trade tariffs against china. there are about to be -- they are about to be handed down. it's likely that australia would win. that would've been very embarrassing for china, to have a wto case against them. it was also an opportunity for australia to defend the rules -based order, to uphold the rules of the wto.

i think deciding to discontinue some of those cases and to suspend the wine case is actually a concession that was well-made. shery: that's interesting. don't give concessions for behavior that was unreasonable in the first place. we have heard that a jury has reached a verdict on the bankman-fried court case. we will be getting that verdict shortly. that hasn't come through just yet. but we should be getting a verdict when it comes to the south bankman-fried fraud trial. back to this visit. it's interesting because people have often spoken about the lack of a cohesive china strategy for australia, given that it's our main trading partner and there are so many crucial interconnections. do you think that the government has that strategy? the foreign minister has done in a norma's amount of work to secure the release of -- for

example. is there more clarity there? >> the government likes to talk about stabilization rather than a reset. china wants a reset. for china, that means going back on previous positions that australia has taken on huawei, foreign investment, for australia to tone down its criticism of china for things that we need to speak out on. i think australia does have a strategy. i wouldn't necessarily agree with that point. australia has clearly chosen. shows in the united states and other democratic coalition who are willing to push back on chinese behavior and policy. where i think this visit is really interesting is to see and test the prime minister and his government and their resolve to stay the course. are they going to be persuaded

to make further concessions that china would want? i think really important concessions that china wants is things like my bishop of the cptpp. they will push hard on that. i think in the context of three or four years of coercion, the government should take a deep breath and consider, do you trust an actor who has coerced you and broken your trade agreements already? they will want more access to the australian economy in areas like critical minerals, other important minerals that they need for their development. but australia has been taking some really important policy decisions to ensure that we are not overly reliant on the chinese economy. there could be a potential for conflict in the future. we've already experienced trade coercion. we don't want to put ourselves in a position of weakness.

in fact, the biden ministration is trying to reroute supply chains to reshore all those kinds of things. i think tax actually -- that's actually a wide strategy in the context of deteriorating relations. haidi: it will be a test of diplomacy tops to be able to navigate the tight rope on this. there's often comparisons made to singapore. these nations that are able to comfortably exist as middle nations with traditional alliances, with the likes of u.s. and china as well. can australia reach that point? >> it will be difficult. i think differences in interests are quite deep. in the last four years, we've had a nice thaw in our relationship and. it's not as though china is

stepping back on his coercive behavior in our region. only very recently, chinese ships were ramming filipino ships in their own eec. a week or two ago, there was some aggressive and dangerous maneuvers by chinese fighter pilots towards a b-52 bomber. again, defending freedom of navigation. china might not be in the news but it's continuing to harass taiwan. surrounding taiwan, continually harassing it by air and by sea. that's normalizing that type of aggressive behavior. we are almost used to that. so in this kind of context, it's really hard to see how australia can navigate chinese expectations of a kind of warming and relations where we start to cooperate and collaborate on things. china's behavior is actually continuing to be aggressive. haidi: really great to have you with us.

we have a verdict when it comes to sam bankman-fried. shery: finally. guilty in less than five hours. the jury went to deliberate this thursday afternoon. we had a month-long trial here in new york. now the ftx co-founder sam bankman-fried has been found guilty at one of the most high-profile financial crime cases in years. same bankman-fried found guilty of several counts of fraud and conspiracy. we know that some of the charges included, that he directed the transfer of money into research for risky investments, political donations, and expensive real estate. all of this before both companies collapsed in bankruptcy last year. so found guilty at the ftx criminal trial of seven counts of fraud and conspiracy.

amazingly got this verdict after less than five hours. if you remember, this is very rare. the theranos founder was found guilty after eight days of deliberation. finally, we have this verdict in less than five hours. guilty of seven counts. haidi: yeah. it's interesting. there's been twists and turns. we really saw his lawyers trying to say that he was unfairly cast as this villain and a monster stereotype. within this movie as they casted in a grand fraud scheme, insisting that the ftx co-founder made mistakes but didn't commit crimes. clearly the jury was not convinced of that. it's been weeks of living -- listening to the government's criminal case against him. when bankman-fried got his chance to respond, we saw that he didn't fare particularly well. prosecutors took charge of that

conversation. he was seen as sounding very evasive or vague. certainly not convincing in front of the jury who ultimately has decided he's -- his fate. being found guilty of seven counts of fraud and conspiracy at the ftx criminal trial. the jury returning that verdict after less than five hours of deliberation. we will bring you more details as they come to us. this is bloomberg. ♪

shery: the japanese prime minister heading to the philippines for a day visit. let's bring in our politics reporter isabel reynolds in tokyo. so why is the prime minister prioritizing the philippines with this high-profile visit at this point in time? >> it's not only japan prioritizing the philistines. it's the philippines prioritizing japan. we are expecting him to get the red carpet treatment out this -- on this visit which is his first since he took office two years ago. among the events, a speech to the philippine congress which would be the first-ever by a japanese prime minister. the background to this is very much the presidents shift at the whole country, and orientation towards the u.s. and away from china.

that resulted in increasing tensions between china and the philippines. that is something that the philippines shares with japan which has its own territorial tensions with china. at the same time, both countries are facing off around these disputed items with china. that is very much something that japan, trying to reach out to these other u.s. allies in the region, really sees the philippines as a priority at this point. shery: isabel reynolds joining us from tokyo as we continue to watch the crypto space right now. we got a guilty verdict for same bankman-fried in less than five hours after jurors went to deliberate on this most high-profile financial crime case in years which has really moved far more speedily than we had anticipated. we are talking about bankman-fried now found guilty of seven counts of fraud and

conspiracy. prosecutors had said that bankman-fried had built his ftx crypto exchange into a pyramid of deceit. we are seeing that the jury has returned the verdict of guilty of seven counts after less than five hours. shery: this month-long trial that we've seen. many times when he finally had a chance to have his say, he didn't necessarily come off very convincingly. we've seen that quick verdict being returned by the jury. more details to come. this is bloomberg. ♪ ♪

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shery: this is daybreak asia. we are counting down to asia's major market opens. we saw a very brisk on session on wall street. the s&p 500 surpassing its 200 day moving average. what i'm watching right now is the crypto space with that guilty verdict for same bankman-fried in less than five hours. we are waiting for more details as to when sentencing will take place. that was really quick for the jury to be returning that verdict in that time. we've seen that decision, found guilty of seven counts of fraud and conspiracy. the jury returning that verdict in sam bankman-fried's case. it's been a month-long series of dramas that we've been watching when it comes to this particular case. waiting former details when it comes to sentencing. of course, the correlation between lack -- as to what some of these ftx links tokens have

been doing has really been quite stark. annbelle: we've seen bitcoin acting as a safe haven even with the collapse of ftx. we have the market opens here. japan, we had ample news out after hours this morning. first quarter numbers really disappointing. you can see the slide there and after hours. apple already facing a slowdown in china. we are hearing perhaps there is some currency costs or the slide in the local currency could be factoring into that. warning that the holiday quarter revenue will be about the same as last year's. signaling that investors won't really see that growth rebound that they were banking on. apple down in after-hours trade. still moving higher at the outset, up 1%. we had quite a strong day on wall street even though we are

seeing u.s. futures moving lower. strong day on wall street. the s&p 500 breaking back above its 200 day moving average. we are watching their reaction to earnings in korea. gaining more than 2% at the outset. we saw third-quarter net profit rising more than 50% on the year. they consolidated operating profit, beating estimates. we are seeing the currency going into a second straight day of gains for the korean won. ups extensive 1%. one of the major standouts on thursday. we are into the session as well for australia. at the start of trading, one hour in so far, asx 200 posting gains here for a fourth day. we are watching shares giving up a lot of their losses. earlier, down around the 3% mark. it's first half net income missing estimates. it's announced a poodle -- $2 billion buyback of shares, worth

1.3 billion u.s.. oil trading fairly safe. haidi: let's get more on these markets from garfield reynolds. it's been a big week. now it just feels like we are waiting for jobs. >> very much waiting for jobs. it's a finely balanced release as it were. got some people saying, 100,000 to 102,000 jobs added. that would cement for them the idea that yields have top-down. -- topped out. would set off fresh alleys and euro government bonds. you would think that you would get an extension of the bid for equities on the idea that roommate dashiell will remain

under control. if you get something that is shockingly low, you would get a big rally in bonds but stocks would not feel so comfortable because, especially with things like the apple reports, some of the other underwhelming earnings we've had, there's that balancing act for the equities market. to what extent lower yields, good news. they put less pressure on valuations. to what extent are they bad news because they signal that the economy is slowing? shery: we are hearing from berkeley strategists that the bar is so low for equities going into year-end. giving seasonality, could we see a rebound? >> yeah. there's always the hope for the fed to rally. like i said, the climbdown in yields is softening in the fed's outlook. that's an obvious, immediate boost as well. it's just the question, we've

had lots of concern before the recent selloff that valuations were pretty stretched at a time when yields are high. guilds aren't as high as they were but they are still higher than they've been for a long time. so that does raise the bar, especially if you are looking for a sustained rally in the short-term. again, probably even a strong slowdown in the jobs market would actually bring a lot of tactical interest into equities on the basis of that yield picture. it's more about a yield that will go a lot further down because the economy is rolling over. or is it just that they will stabilize around 4.5% on the 10 year? maybe lower? that's the sort of set up that would be -- one note talking about how goldilocks is back again. i think that's what equity investors are hoping to see for

christmas, a goldilocks set up when it comes to the economy and the rates outlook. haidi: you've written about this catch-22 when it comes to the bond market. >> a big part of why the fed said, we think we need to be cautious and move away from rate hikes, is because there has been a big backup in yields. when most of those fed speakers were talking, that's when yields were lower. 4.9% or higher on the tenure. we are now down to 4.66%. a little bit lower even at one stage. if we get a modest jobs number, that will go lower. you can imagine a world where pretty quickly we are back down to 4.5%. now if the data does come off, it's probably ok. if the data stays resilient and you've got yields back down to 4.5, you will start the fed saying, maybe the job isn't done

yet. there's also the lingering concern that they might face the sort of logic that the r.b.i. in australia is facing. you hold rates for a while, the economy starts to heal, that raises the potential that when you do go back to hiking rates, you will have to hike more than once. the longer they hold, the more the chances are that if they hike again, they hike more than once. that creates a very difficult outlook for the bond market especially, one of the things going along with this move is a flattening of the curve. once again, if you are buying long-term rates, you are facing negative carry. you could be earning higher income by going shorter on the curve. you are going longer on the curve because you think there's going to be a rally. you make more money. if the rally doesn't come, you are looking at getting forced out of those positions.

shery: we are also watching the crypto space. sam bankman-fried has been convicted of a massive fraud that led to the collapse of ftx following a month long trial. let's get the details from angela moon. a month long trial and less than five hours of deliberations. what we now? >> this is a record. we weren't really expecting this to happen so quickly. that shows that the jurors were really convinced from earlier on in the trial that this was a simple fraud case. that same bankman-fried had every intention of defrauding his investors, and that he was the one behind orchestrating the fall of ftx. he was also charged on all seven counts which also means that jurors are pretty convinced from earlier on. this was a very straightforward case. haidi: what happens from here?

we have a sentencing date now. he will be sentenced on march 28 next year. what is the process? what expectations do we have in terms of the sentence? >> there could obviously be an appeals process in between. we don't know what the defense will respond to. like you said, march of next year is the day for the sentencing. that's also when sam bankman-fried and his close inner circle will also receive sentencing that they will be receiving. of course, there sentencing will be less than what sam bankman-fried gets. did plead guilty and cooperate with the prosecutors. haidi: bankman-fried's lawyers try to convince the jury that he was simply a math nerd.

right? what eventually convinced the juror. you said, early on that he was girly. >> the prosecution really had a strong argument against sam bankman-fried. it was a risky move because it opens up the possibility of a hostile process -- cross-examination by the other side. he wasn't really convincing. a lot of his answers were that he didn't remember and he wasn't sure. we felt like this was not enough to convince the jurors that he didn't have any intention of defrauding investors and he did make a lot of business mistakes but that was done with his inner circle, giving him advice antics -- suggestions. from day one, this is a case of the prosecutor having a strong argument against sam bateman

free. haidi: ultimately convincing jurors. angela moon with the details on that. same bankman-fried's verdict is returned. very quickly and found guilty after that month long trial. let's take a look at the other big story, a disappointment when it comes to apple but also some of the areas of weakness have been flagged. are we seeing that reaction across asian apple suppliers? >> so far, these are some of the biggest suppliers into apple. in line with how asian stocks are trending in the session today. at this point, every sector is in the green. a lot of the areas for apple in terms of things like their macs and ipads, weakness. better weakness incoming --

coming through in areas like services. that's more of a newer sector for the company. but the focus at the headline level still on the slowdown in china. could be currency applications that are playing into that. the warning around revenue in the holiday quarter will be the same as last year. the devil seems to be in the details for the apple reporting this time around. shery: let's get more on reports with su keenan. china, india where a big focus during the call. >> for different reasons. weaker than expected revenue out of china which has been an area of weakness. as tim cook emphasized on the call, a surprising strong if not record growth out of india. they also point out india is not a huge market share for them. they see that as an opportunity and it's becoming a major focus. as mentioned already, facing a slowdown in china. warning that revenue in the

holiday or will be the same as last year, flat. that's a major disappointment. apple revenue has declined for the fourth straight quarter, coming in at 89.5 billion. still the company did beat estimates on many of the products. again, these were on reduced expectations. the continued focus on china is that the revenue came in well below expectations, missing estimates by about 2 billion. apple said this was due to the overall mac and ipad decline and that the iphone actually enjoyed a quarterly record in mainland china. mac sales have been on the decline. the company says they are coming out with a new version. they talk about the reason for the strong negative results in the quarter. there were tough year-over-year comparisons compared to the september quarter last year when they were starting to fulfill a lot of orders because of what the supply chain lag had been. the company didn't provide formal guidance but they have a

strong indication of what to expect this holiday quarter when they sell the most product, likely to be similar to last year. wall street was expect and 5% growth. -- expecting 5% growth. haidi: where there any other highlights, bright spots, sources of optimism? >> there were questions on the call about what to expect out of china going forward. potentially opportunity for continued gains in the region. the results suggest that apple decelerated in china. the government has imposed bans on u.s. technology. huawei is starting to take away market share and provide fresh competition. tim cook was very optimistic on the call, saying apple set a september quarter record. says the market predictions -- he thought there would have been market contraction. with the iphone growing, the device gain share in china if those reports that he gave on

the call are correct. over the long-term, the ceo says that china is an incredibly important market and he's very optimistic about it. cook was asked about vision pro and generative ai. he said the headset they are working on is going to get a very advanced promotion with experiential demos and prior products and they are also investing quite a bit in generative ai. in all, a disappointing quarter. the stocks drop expected to translate into weakness in u.s. friday trading. back to you. shery: su keenan here with the latest. still ahead, weight loss drugs are catapulting some pharma giants into the ranks of the world's most valuable companies. ubs joins us for a deeper look a little later. franklin templeton says the global fixed income market is still overestimating the likelihood of fed rate cuts next

year. more with their cio, next. this is bloomberg. ♪ the chase ink business premier card is made for people like sam, who make- everyday products, designed smarter. like a smart coffee grinder, that orders fresh beans for you.

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pgim. our investments shape tomorrow today. haidi: bonds across asia trading right now. an extension of gains we prop -- saw in the previous session.

following that global rally higher. that started with u.k. bonds leading those gains. we had a little bit of a mixed picture in the treasury space with a two year yield still extending gains towards 5%. right now, we are seeing the 10 year yield in australia, the three year yield falling for second session. now at the lowest level in around a week. we are watching chinese yields as well. jgb's not trading. japan is away on holiday. let's bring in our next guest who says the markets are still overestimating the likelihood of a fed rate cut next year. with us now is the executive vp and cio at franklin templeton fixed income. great to have you with us. let me get started with the moves that we've seen the last couple days. we continue to see the rally. do you think this is overdone? >> i really do.

if i look at the rationale that the fed gave in both its written comments and during the press conference, there was a lot of emphasis placed on the financial conditions index. the rally in equity markets and the bond markets effectively has unwound the tightening all the way to about october of last year. we are talking about 150 basis points of rate hikes. so the rally in and of itself unwinds some of the rationale that the fed has given for being more confident that inflation will come under control. shery: the pitfalls of share messaging. you have the rally in treasury stocks as well. where do you see rate cuts coming? do you think we are overestimating how much easing we could she -- see? when could be the first one? >> as of yesterday, before the final rally, we were still pricing in almost 3.5 rate cuts

starting as soon as soon as next year. that definitely seems aggressive to me. i think it's far more likely, absent some dramatic slowdown which doesn't look like it's in the cards including on the fed's own forecast, we probably see a rate cut towards the end of next year. that's the beginning. so rates on hold at a higher level for an extended time. and i would note that chair powell didn't rollout it all that there could still be an additional rate cut in this hiking cycle. it depends on the data. >> -- shery: continuing to mention the moving carefully rhetoric. is it about the inflationary picture? what else leads you to think that the fed will not move? >> so there are a couple things. there is the fact that we've

been saying for a long time that the move from 9.5 to four is much easier than that final few hundred basis points of inflation to squeeze out of the system. that's one element of it. the other element is the fact that the economy is resilient. certainly we would expect it to slow but it's not slowing so quickly that the fed is going to be forced into a very dramatic rate cut early. additionally, fiscal policy is still quite stimulative. very easy in the u.s.. as such, i don't think the fed will have room to start cutting rates aggressively. certainly not as aggressively and as weakly as the market anticipated right now. shery: so how are you positioning? >> we essentially had gone long as we were short coming into the year. we went a little bit long as we got treasuries closer to five. we are looking at that position right now and thinking about what we should do next.

these are very volatile and quick movements over the last few days. we think they are likely to reverse. shery: when the boj moves, would that change your calculations? >> absolutely. it only emphasizes the upside risk to u.s. yields. i talked a little bit about fiscal policy. that's the supply picture. on the demand side, you have the fact that any boj moves are likely to be negative for u.s. yields as japanese investors bring their money home to some extent. they've been a long and consistent support at the long end of the yield curve, the u.s. yield curve. that certainly reemphasizes why we think the move over the last few days is likely temporary and overdone. shery: good to have you with us, executive bp and ceo of franklin templeton fixed income. we have more to come on daybreak

asia. this is bloomberg. ♪

>> we still see the risks to inflation being on the in -- upside at the moment. it's important for that message not to get lot. if the market has taken of you that we are leaning towards more cuts, i will lean to the upside. haidi: andrew bailey pushing back on market expectations, 75 basis points of rate cuts are going to come through next year after keeping policy on hold. it will be very interesting in terms of how that plays out because we've seen that market repricing. checking in on how u.k. assets are trading in the wake of that decision. andrew bailey saying that it's much too early to be thinking

about rate cuts but markets have had other ideas. we are seeing traders expecting as many as three-quarter point cuts from the boe. that would put the benchmark to 4.5 percent. inflation remains elevated in that economy. we are up 4/10 of 1%. shares advancing for a fourth day. this is now the longest streak since july with the hopes of the fed perhaps being done with the rate hike cycle, the major driver of this. we will continue to see the reaction to the jobs numbers that we are awaiting in the friday session. futures looking perky at this point. 4/10 of 1% higher. ftse 100 futures up by 1.5%. shery: crypto assets under pressure. we've just gotten the verdict, it sam bankman-fried guilty of

seven counts of fraud and conspiracy after less than five hours of deliberations by the jury. the judge saying that he will be sentenced on march 28, 2024. he's facing as much as 20 years in prison on each of the most serious charges. this is one of the most high-profile financial crime cases in years and perhaps a referendum on not only bankman-fried and his business but also on the volatile crypto industry. take a look at bitcoin now, losing ground for a second session after touching a 17 month high earlier this week. more to come on daybreak asia. this is bloomberg. ♪

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managers index for the month of october, coming in at 50.2 which is slightly better than the previous month. not by much. we are talking about a third consecutive month of the singapore pmi expansionary territory. take a look at hong kong pmi numbers. still in contraction territory and worsening. 48.9. we are still below that 50 line. philippine pmi manufacturing for october. really etc. 52.4, really improving from the 50 level that we saw in the previous month. we continue to see some gains for the philippine economy especially when it comes to the manufacturing sector which is now in positive territory for second month.

broader eco-data that is really being weighed by the markets and traders, especially that jobs number. >> the job gains in october really expected to moderate the pace we've seen in september. they will be very closely tracked. we will see investors a little bit cautious to place big bets. the market direction today is interesting. we are still seeing gains coming through for equities. korea, japan is shut for a public holiday. but it's that data reaction to the fed staying on hold but also indicating perhaps we are done for rate hikes for this cycle. we saw the boe, a hawkish hold overnight. not really willing to be drawn into andrew bailey on the prospect for cuts. s&p 500 futures turning weaker here, probably a reaction to

apple. the big company that reported after hours. flagging that holiday sales won't be as good as what had been expected by analysts in the market. the expectation for a 5% gain over the holiday, now apple saying that will come in flat. the big thing to watch this hour has been in the crypto space. take a look at the action for bitcoin. his holding very steady. sam bankman-fried found guilty at the criminal trial. waiting for more details on sentencing. the crypto markets facing a collapse at this time. haidi: a q. week ahead -- a q. week ahead when it comes to anthony albanese. he's preparing to head to beijing and shanghai.

the first visit to china by an australian leader in six years. let's get more from ben wescott. this has been highly anticipated. there's been a lot of work done on this relationship by the current government. what we know about this visit? >> absolutely. what we are expecting is that he will spend four days in china between this saturday and the coming tuesday. he will go to beijing and shanghai. in beijing, he will meet with the chinese leader. obviously, very relevant place for australian presidents to be given the trade tensions recently lifted on things. shery: first visit from an

australian leader since 2016. >> that's exactly right. and it is. it's a massive visit. first visit with the chinese president. it's a real indication of how much the relationship between china and australia hasn't moved since the lows of the 20 20's. we have the australian bound huawei using 5g technology in australia in 2018 as well as a crack a crackdown on foreign interference in domestic politics which then slowly led to the former prime minister calling for his international investigation into covid-19. it was all down here -- downhill from there. both china and australia have i per -- prioritized the relationship. to the point now where the chinese ambassador told you that the relationship has stabilized. the question now is what comes next. shery: still ahead, weight loss

drugs are catapulting health care giants like nova nor sticks into the ranks of the world's most valuable companies. ubs joins us to discuss that next. this is bloomberg. ♪ the chase ink business premier card is made for people like sam, who make- everyday products, designed smarter. like a smart coffee grinder, that orders fresh beans for you. oh, genius! for more breakthroughs like that- i need a breakthrough card.

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shery: strong demand for obesity and diabetes drugs have sent sales surging in the third quarter with double digit growth expected to carry into next year. the ceo told us the company will gradually increase supply of the popular obesity drug. >> we see tremendous demand for medicines. we have a keen focus to ensure that patients get a good experience. we want to make sure that those who start treatment can continue treatment. that's why we've taken the starter doses down to make sure that when you titrate up, you can have a good experience. we keep increasing our capacity as just explained by the recent upgrade as we look to the future. we will be gradually expanding and bringing more and more product to the u.s. so we can continue this innovation-based growth strategy. specifically how and when i cannot go into much details about that you can trust there will be more supply coming to

the market. >> you said that we should expect to see those limits stretch into 2024. is that still the timeline? >> we see it's a dynamic situation. it's obviously a function of demand. how we have to handle these starter doses and a function of how we supply. i will not go into specific guidance about it. for the remainder of the year, you will see starter doses being lowered somewhat. then we will decide in a dynamic fashion when we have supplies and we see what the demand is. there is more and more product coming all the time. >> what are your expectations around the timeline for medicare inclusion? >> this is something that is being debated a lot in the u.s. right now in medicare part d. it's not allowed to provide for anti-obese medicines. it takes a lot change to open up for that. i believe that's being closely

debated in washington and it could happen sometime in the future. i don't really know when. in the meantime, we see that we are greatly expanding access and the commercial space. we have now access to 15 million americans having commercial insurance and some government coverage. we see it gradually opening up. we see broad access that we can address. most of those patients facing very local ok -- low co-pay for getting your medicine. >> you have everyone from snack makers to retailers warning about the so-called owes epic affect. what are your thoughts on that? do these drugs actually have that far-reaching of an effect? are some of these concerns overblown at this point? >> i think it's established that obesity is a leading cause of a number of comorbidities.

snacking and the like. i think some of the speculations around how it impacts the food industry and the drinks industry is perhaps a bit exaggerated. i think it underlines that for the first time, we really have a way to address weight. something that's a concern of a large part of western society today. many patients have been trying to lose weight and have not succeeded. now there's an effective way of doing that. it brings a lot of hope to patients. it brings benefit to the health care systems in terms of mitigating some of the cost associated with these diseases. obviously that's a fantastic opportunity for the industry. haidi: the ceo speaking to our colleague there. let's bring in the head of asia

health care resort. you've made it your area of expertise to look at what sounds like a huge structural change across many different sectors including the applications for other drugs and consumer staples. what's the uptake here? >> i think certainly there's been a seachange in the increase in popularity of these drugs. don't forget that they were initially developed over a decade ago for diabetes. only recently have we really seen an inflection, an increase in popularity for using these drugs, especially for weight loss. using it for weight loss is indicated for diabetes and not for weight loss like some of the other drugs are. is being used extensively off label. people, by most accounts, are seeing very good result. that has resulted in supply

shortages. i think we've been hearing from them about their planned timelines to fix that. certainly the demand is really there. it's been an interesting inflection to watch in that drug class. haidi: do you expect that this will lead to structural change? is this class of drugs a silver bullet to fix the obesity problem? to be able to do so many other things. the maladies and illnesses that come from obesity and weight gain. whether we will see massive changes. >> i think that's one end of a continuum that we can see. so maybe at the other end, we are only helping people with very serious weight problems. we can give them these drugs, have them lose weight, and see benefits on cardiovascular risk. maybe at the other end of the spectrum, the sort of societal shift that you talk about, maybe even a situation who aren't on

them get on board with a healthier lifestyle and we have a lighter society overall. i think the reality is between those two extremes. overall, we see investors concerned about potential impacts on the food industry, closing, airlines. i think some of them are a touch far-fetched. you would need to see very big societal impacts to make a difference. those are the types of questions we are seeing investors acting now that people are thinking about becoming slimmer. haidi: real existential questions. maybe the health fast food alternative will be more appealing with this change. accessibility. what are we seeing? this is not the only drug that's being used. are we seeing wide availability, particularly when it comes to pricing in specific markets? >> it's become so popular that there are supply constraints. we've seen some efforts in australia, in belgium, pleading

with doctors to only prescribe it to people with diabetes. there's not that much they can do. often it's very down to the doctor. if you wanted for weight loss and you can sign -- find someone to prescribe it, that leaves you exposed to the full cost of the drug if it's not reimbursed in that country. so in many cases, it's down to people's ability to pay. also their ability to get hold of any depending on where you are in the world. in the u.s., where most of these drugs -- certainly insurance coverage is patchy. if you want to pay for the drug yourself, you will be looking at over $1000 per month in cost to you. outside the u.s., a bit less. in australia, you are looking at $300 a month if you are paying out of your own pocket. probably similar in countries like the u.k.. haidi: as an investor, what is

the best way to try to play this? directly, indirectly? we talked about some of the possible long-term changes. >> those are tricky questions. it depends on whether you have a strong view on the positive or negative side of what those could mean. for different stocks, food stocks, health care stocks. there are all sort of angles you can take. some of them are longer dated than others. you referred to restaurant food for example. possibly people make immediate changes to their choices about what they eat if they are taking one of these drugs. or you could be looking at something much longer dated. for example, and this is only a hypothesis, maybe fewer people require new replacements. those would be much longer dated ways to look at it. i think we are certainly in a time of flux in investor opinion

, trying to figure out what will really happen. haidi: it is fascinating though. great to have you with us to have this conversation. shery: these weight loss drugs also seeing -- seen as a threat to the global package food and beverage industry. there are more challenges for the sector which is an -- on the hunt for the next frontier. we are talking about greater public health awareness hampering their business in western markets. today's big take looks at how the industry could see a lifeline in countries including india. for more on this, let's bring in bloomberg global food coverage leader. tell us what's happening in these western advanced economies , whether it's north america or parts of europe, where the sales of snacks are stalling. >> yeah. these are very much well-established markets, pretty

much saturated. at the same time, we are seeing an increase public health awareness around these products. people realize more and more that they are not good for you necessarily, if you consume large quantities of them. at the same time during the pandemic, this awareness really increased. it led some governments to look more at the sector in terms of what to do. as we remember, obesity was one of the worst factors for covid. people pay attention to the health impact of their diets. haidi: what are the broader implications when it comes to indian society and the broader economy? >> in india, what's interesting is that this is very much an

emerging market. sales of those products are still growing. they are growing at a double-digit pace which is so much faster than in the west. you know, you have a lot of enthusiasm around these products. they are relatively affordable. regulator scrutiny, curbs on marketing, information, the packaging. it is still not there. it's not as pronounced as in the western markets. so the question here is, what does that do for india? what does that do for emerging markets? as we see changing diets, we do see rates on the rise. dave risen multiple over the past decades. just as a reminder, india is a country that historically has struggled with hunger.

now it's having another burden to deal with. it has to catch up. i think the question of repercussions for that is, what will be the economic cost of obesity if that proceeds? shery: the latest big take. check it out on the terminal. we have more to come on daybreak asia. this is bloomberg. ♪

shery: sam has been convicted of a massive fraud that led to the collapse of ftx. let's get the details from bloomberg's editor for legal news. i mean, it was a one month long trial. the verdict coming out after less than five hours of deliberations. you've been here since 6:00 a.m. did you know you would stay this late? >> i did not expect this. this is a rare, unusual moment in the history of fraud trials. as you mentioned, we weren't expecting this to happen even this morning.

if you look at the history of the high-profile criminal cases, it has taken weeks, sometimes months for a jury to make deliberations. for this to arrive within less than five hours, this really shows that the jury was convinced that this was a fraud trial. that sam bankman-fried had every intention of defrauding his investors from very early on. he was also convicted of all seven charges. that also solidifies that there were over -- they were convinced from very early on that he did in fact commit these crimes. haidi: what comes next? we know the sentencing date has been set as well. what's he facing? >> the defense said they are disappointed with the results and they will be preparing for an appeal. we heard from the judge today that the actual sentencing will happen in march of next year. that's when we will get the

sentencing of san bankman-fried also his inner circle. like carolann ellison or gary wang who already pled guilty and is cooperating with prosecutors. march will be a busy month rugs -- for us again as we get sentencing details of a lot of people involved in this case. haidi: by how fast this came out , the fact that prosecutors painted this pyramid of deceit, does that affect what the sentencing could look like? we talked about the fact that he could face decades in prison. >> he could technically face life time in prison because he was convicted of all seven charges. some of the charges carry a maximum sentencing of 20 years. that really adds up. what's more important to note here, whether he actually takes the stand which was a very unusual move for a high-profile case like this. it opens up the possibility of hostile cross-examination and also a lot of what he set on the stand could be turned against

him for the sentencing. so it will be interesting to see how the judge takes that. obviously, his testimony was valid enough to convince the jurors. [inaudible] haidi: does this have repercussions for any other cases that we might see within the space? clearly we've talked about how the prosecution had a strong case going forward. with the short amount of time that the jury required to deliberate, they were quite convinced of that. is there anything else we should be looking out for in terms of broader industry implications here? >> definitely. what we heard from damien williams just now, who really brought this case, he's a manhattan attorney general. he said this was basically a triumph and that he is really cracking down on not only the crypto industry but the

financial industry. these fraud cases -- crypto may be new but these cases are old and he's really bringing full force to address some of these issues in the industry. we are likely to see more crackdown. we are likely to see more regulatory scrutiny in the industry. it will be interesting to see how the fallout of this for other cases that the sec and other regulatory agencies have against crypto companies. haidi: angela moon here with the latest on that conviction of sam bankman-fried. as we look at crypto assets under pressure right now, they are falling for a second session. this is bloomberg. ♪

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