haidi: chinese president xi jinping arriving in san francisco.

being met senior officials including treasury secretary janet yellen as he arrives for his first visit to the united states in six years. just one of a handful of foreign visits he has done outside of china in a few years. he gets set to meet with president biden. the u.s. saying they are interested in helping china's struggling economy but not at the expense of american interests. no for china's side, there are economic vulnerability's and domestic challenges at home and for the u.s. as well, domestic challenges and distractions as well as other geopolitical concerns including two wars in gaza and in ukraine certainly benefiting potential both sides to be able to reach a point where this relationship can be managed in a stable and predicable and mutually beneficial way. we wait to get any deliverables on this. we know some of the easier topics will have to do with climate. also there have been suggestions there will be a deal on the

crackdown of the fentanyl trade. people familiar saying the details are still being finalized. potentially beijing could go after chemical companies to stem the flow of fentanyl and the source material to make fentanyl to try to potentially deliver president biden a key electoral win. this is an issue that is very important to american voters. this comes at a time following what has been frosty relations between the two big superpowers. have seen in the weeks and months leading up to this meeting a series of high-level meetings involving the likes of treasury secretary janet yellen and other high-level officials including the chinese foreign minister who is with president xi jinping on this trip to lay the groundwork. we know a lot of work diplomatically goes into place before these leaders can meet. vonnie: plenty of people have been making visits. the treasury secretary, we have been speaking about her visits and conversations with their

chinese counterparts. we had antony blinken making visits. this is the first time we have seen president xi jinping on u.s. soil and much of anywhere in the last six years. have been plenty of multilateral conversations and multilateral meetings. the only countries he has visited our russia and south africa. this is a major deal. the press are reporting it out. you mentioned there will be protesters of course. . there are plenty of things each country does not like about the other and would like to impress upon its own electorate about the other country. at least for these purposes, it is a positive thing and the optics are very positive in the sense the two leaders are meeting and they are meeting on friendly terms and have plenty to talk about. haidi: plenty to talk about indeed as we see the chinese president heading on his way ahead of the apec summit.

we talk about the positive falling in the broader atmosphere surrounding the relationship leading to the key meeting. we know the fundamental rivalry between the u.s. and china is here to stay. it was not that long ago we saw just on spy balloon derail the relationship. vonnie: it is amazing how face-to-face talks can change things. breaking news now out of south korea and we got unemployment for october coming in at 2.5%. that was better than economists were forecasting. economists in the survey were looking for the rate to rise to 2.7% in october. which would have been a tent higher in september. what we got was another 10th better than september. we got the kospi up a quarter percent. we will have to see how that age does today. perhaps you can tell us more about how asian markets are reacting not just to this data point but president xi jinping's

arrival in the united states and the u.s. cpi data. annabelle: it is the big focus on the u.s. inflation print. we saw at the headline level, the core reading ticking down. that is reinforcing the fed is done with hikes for the current tightening cycle. you are seeing the market reaction, the exuberance across a variety of asset classes. the asx 200 coming online this morning. 7/10 of a percent in the early parts of trading. another five minutes or so until we are fully online. the big reaction in bond yields. you are seeing that move lower across the curve. it is that expectation we are done with hikes for now. currency wise, we sell the big move lower in the greenback. around the $.65 level. it's take a look at the rest of the asian region. it is the move.

the bond reaction in the kiwi space. japanese yen one to note. 15191. you can see back down toward the 150 mark. a drop of around a percentage point following the inflation print. vonnie: it is interesting to watch how u.s. futures are reacting. we are just getting the opening of trade in the u.s. futures. it seems they are ignoring what jamie dimon has to say for the moment. the 1.9 percent rise in the s&p 500 in the session post cpi. a big rise in the nasdaq. it looks like in the next session we are pointed higher for the moment. same thing in terms of hans. we have on futures pointed lower -- we have bond futures pointed lower. we got the massive drops in the tuesday session post cpi. it was 21 basis points on the two year yield. 25 basis points on the five year

yield. 18 basis points of a plunge on the 10 year yield. was going to say you cannot get a good gems but i guess you could. haidi: funny, of course -- vonnie come on one hand there is a third and on the other hand president xi jinping lands in san francisco. he is on his way ahead of critical meetings with a number of asian leaders. particularly we are watching for the meeting between him and u.s. president biden. huge implications for markets as we get into looking at what those deliverables can be. it's get perspective from our next guest. great to have you with us. quick -- when it comes to emerging markets, whether we can see some falling in the u.s. china relationship and

individual companies that have exposure to china. how do you view what china is doing in the broader context of how we could potentially see selective outperformance in emerging markets. >> thanks for having me back. i think you are right in that this is -- or could have very significant impact on the sentiment of foreign investors investing in china. that could lead to a rally in some segments and stocks. we are not expecting any big policy shifts but we are expecting some positive signals coming out of these talks. if those positive signals are centered around trade, especially around semiconductors, the technology trade barriers, you could see some relief rally in those set of stocks to the broader picture, china is still struggling to issue -- the property sector is still being somewhat of a disaster. for us to see a broad market

rally across em or china seems unlikely because we have to see the fundamentals lineup peered not just the sentiment turn positive. vonnie: does the catalyst then come down to the fed and the dollar? we sell the dollar tumbling the most in a year. we see the bets at the end of the hikes and cuts being priced in by the market. does that change the narrative when it comes to emerging markets? >> this narrative is going to stay volatile. the fact that the u.s. fed seems to be done with rates and inflation for now is a positive for all risky assets. not just em but risky assets across the board. the situation could stay volatile the next 12 to 15 months. we are investing in areas where we can be defensive meaning in stocks, sectors, segments where earnings is still strong peered

dividend yields are high and cash flows are strong. and then if we get a rate cut next year, multiple rate cuts next year, that could be icing on the cake and more upside. in particular, one space we are looking at is em small-cap where small-cap stocks are expected to grow 20% next year. they are shielded to a large extent from geopolitical issues because they are primarily driven by domestic demand. the small-cap stocks generally have less china in them they are more weighted toward india and korea. that is an example of something we like where the fundamentals are strong peered earnings growth is 20%. they are shielded from geopolitical concerns. you can still see the risk on rally next year that would benefit them. vonnie: you are positive on chinese state owned enterprises in chinese banks. i'm curious if you think something needs to happen in order to stay positive on both of those.

does the state need to step in and shore up the property area in order for the banks to be ok? >> yes, so the last time i was on the show we talked about chinese banks paid we have been positive on chinese banks most of the year. that is driven by the fact that is a sector the government is going to support. to the extent chinese banks have nonperforming loans coming out of the property sector, the government historically has found a way to write those off slowly without taking a one-time big hit to earnings and consequently to share prices. the second thing the chinese government is doing is through their management companies they are going out and buying chinese banks and supporting these stocks. we have already seen a lot of positive government support owing to chinese banks specifically. think that is likely to continue. banks are the back one of the economy and we think support coming from the government is going to keep these banks every

stable even if the broad chinese market is down which it is this year. haidi: tell us about some of your other convictions. would like some east asian markets, korea, taiwan is one of them but also india which looks pretty expensive. >> that is the problem in india. it is perpetually expensive. we have talked about india previously. it is not a market we have historically been very positive on. mostly because of valuation. the thing that has changed for us now is india has become more domestically oriented and less exposed global growth. and foreign investors than it was before. domestic demand has been strong for equities. earlier, the indian stock prices in terms of valuations and multiples were reliant on foreign investors investing in india. because of a set of policy regulations, there is significant demand for domestic equity coming from domestic buyers which has protected the

market and isolated it somewhat from global swings. india despite the fact we are in this higher for longer regime, india has continued to outperform showing some resiliency and some isolation from what the u.s. fed and foreign investors are doing. it is a big change we have not seen in india historically. that is one change that would propel our interest. in india the second thing of course is growth is sharper than it was before. i think now there is more visibility in terms of growth. the demographics are very favorable. we can talk more about about. india now has a vision. they have a vision of being the third largest economy in the world. they are putting in policy measures like the made in india initiative. supporting domestic companies to get there. we think structural growth in india is stronger than before. and the same government support we have been seeing in china for

the last 10 or 15 years, we are seeing the indian government taking the same tact in terms of supporting the economy and supporting markets. vonnie: we look forward to continuing the conversation on another occasion. thank you for joining. still ahead, we are live at the ace addition of the singapore fintech festival. the monetary authority joins us to talk about policy and regulation around crypto and ai. this is bloomberg. ♪

haidi: to live to san francisco where we are seeing opposition rallies taking place as we had minutes ago the arrival of chinese president xi jinping in san francisco for his first visit to the united states in six years at of this highly anticipated meeting with

president biden. of these crowds are welcoming waving chinese flags welcoming president xi jinping having just arrived. expect in the motorcade to be passing by soon. there other crowds protesting his arrival in the u.s. we saw signs criticizing the chinese communist party. the policies, human rights records. some of their policies toward uighurs. heavily policed streets. as a special national security event designated. we are seeing high levels of national security policies being implemented. we are seeing that division in terms of what those crowds signify. let's bring in bloomberg's rater china editor jenny marsh on the ground in san francisco at apec for us. we sell president xi jinping deplaning, being welcomed by

treasury secretary janet yellen and being wished away in his motorcade and the crowds gathering as well. there high expectations on just about every level here. >> absolutely. xi jinping is the guest of honor at the summit. there is no doubt about it. have some of the most powerful ceos in america here this week peered they are going to be willing to sit down with xi until the chinese economy. find out the state of play in china. the health of the economy. whether or not foreign businesses are really welcome in china as the chinese government keeps saying they are. at the same time, you have widen in xi jinping -- you have biden and xi jinping in sit-down. it has been a to mull to since the last sit-down in -- been a to mull to us year since the last sit-down. these are the two most powerful men. the relationship impacts the rest of the world. there is a lot happening and xi is finally on the ground. vonnie: in some ways they have achieved a huge amount already.

just the pictures of president xi in the united states with president biden being greeted and driving off for conversations. that is -- that says so much about how the relationship might be thawing or what the relationship should go in. tell us what is on the agenda. wednesday is going to be a very busy day for president xi. >> a very busy day. he is expected to sit down with joe biden for those talks we just mentioned. they are going to be speaking about a range of things from trade, the u.s. curves on chinese access to high-tech chips. taiwan is going to come up. . this is a very sensitive issue for china. the u.s.'s position on it. the war in ukraine. all these smaller area of deliverables we have been talking about this week the u.s. is pushing china to help crackdown on fentanyl crisis in the u.s. the ingredients of fentanyl come

from china either to the u.s. or through mexico. there is a climate deal probably in the works. boeing aircraft, china might resume purchases of those. more flights between the two nations. a whole bunch of things they are going to be hammering out the details on. the main point here is the two men who are in charge of these major economies to be talking directly. there aides have been talking, officials have been talking all year. now it is time for the people really making the decision to sit down and communicate and make sure this relationship remains steady. after the last time they spoke, things derailed quickly over the elected chinese spy balloon. they want to make sure it does not happen again this time. vonnie: things were deteriorating for a while. it is looking a little better now at least. you will be providing coverage for us from apec in san francisco throughout the week.

that is bloomberg's greater china editor jenny marsh in san francisco. plenty more to come on daybreak: asia. this is bloomberg. ♪

vonnie: the eighth addition of the singapore fintech festival begins today. experts from around the world in finance, technology and public policy. haslinda amin is standing by with our first guest. haslinda: the eighth addition, the guest yet. 62,000 participants from 100 34 countries. a lot of interest especially on the back of developments in ai. let's get perspective. chief fintech officer in singapore joins us. good to have you with us. just wondering why the interest? on the back of developments in

ai, tensions between the u.s. in china when it comes to tech. >> we call this a breakthrough year of ai. it was in the stream for the last 15 years this just opened up. the foundational constructive software as a definition has changed. things would happen behind the background. that is ai. it changes everything we think about software, technology, perception. everything that will change. china if you look at the last 10 years, china's technology growth has been remarkable. china's technology progress in ai, in fintech, in terms of -- doing a lot of good work. china wants to showcase what they have done. it is a great place to look at china's progress. haslinda: talk to us about ai investments. what are you seeing in singapore? what are the numbers like this year?

what is anticipated? >> investment in ai has gone up. unlike every year technology investment tends to attract capital more than it is supposed to come of this time it has been much more balanced. haslinda: put a number to that. >> last number i sell into the market. there is a difference. it is coming for a use case driven investment. not dearly putting betting on technology. they are bidding on application. haslinda: what applications? >> financial services peered every application where there is capital market. haslinda: where is most money headed into? >> infrastructure. in the soft -- which is going to power infrastructure. a lot of very focused targeted application. people generally want to put ai as part of the tech strategy. look at all of the adoption and the cios you talk to around the world. everyone has it in the budget in tech right now they're putting

it to change everything we see. haslinda: it takes a cautious approach. it is ethic space. it was to be fair. the likes of the u.k. are surging ahead, papers, policies, hosting ai summits. could singapore lose its competitive edge? >> i would say no because we want to put a long game in the space. we went to sure whatever ai adults, it stays for a longer time. there are a lot of lessons in the currency space. you missed the boat actors coming quickly. we want to make sure it is done thoughtfully. we have to keep ourselves up there in technology and operating system and application. still we have two inject responsibility. haslinda: the ai industry limited by talent. that is a global issue. >> huge gap. because unlike other technologies that demand surges and a strainer level, everyone

-- it does not exist today. haslinda: how many jobs are there still open? what are you looking to fill? i could put a big number here. in my sector, in 2004, -- in -- it is going that such a pace. haslinda: we have to leave it there. chief fintech officer at the mes , monetary authority of singapore. singapore central bank. we are coming to you from singapore's fintech festival. the biggest in the world. haidi: lots more to come from that event. haslinda amin in singapore. it's take a look at how u.s. futures are tracking at the moment. have seen how bonds are surging. pointing in the direction traders are wanting to.

seeing the repricing of expectations when it comes to when the fed will stop its rate hike cycle. when the first of the rate cuts might come through. five your yields plunging more than 20 basis points. the dollar falling 1.2% peered the biggest drop in a year. we are seeing that reflected as well, being continued in the asian session. australia and the new zealand government, 10 year yield slumping in early asia trading down by about 12 basis points as we continue to analyze u.s. headline, core inflation of october slowing more than what economists had forecast. seeing that continuing to play out when it comes to treasury futures. the market pricing now at a 50 basis point cut so, you've got the power of xfinity at home. now take it outside with xfinity mobile. like speed? it's the fastest mobile service around. with the best price for two lines of unlimited. only $30 bucks a line per month. that's hundreds in savings a year

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vonnie: these are life pictures. you can see president xi

arriving in san francisco. the motorcade driving through downtown san francisco where it is just after 3:30 in the afternoon on tuesday. president xi arriving for the apec summit. the asia-pacific economic cooperation organization. on the sidelines but probably the main reason for this is the meeting with president biden. president biden has said he is looking forward to it and the u.s. is not looking to decouple from china. let's have a look and see if there is any reaction in markets. haidi: it is the -- annabelle: it is news dominating news. half an hour into the session for aussie stocks. it is really the sectors are sensitive to what is going on in rates moving the most. real estate, materials, i.t., a huge jump up 2.7%. out pacing what we are seeing

for the broader asx 200. there is a lot of green on the screen today. it tells you investors are optimistic the fed is done with hiking rates for the current tightening cycle. coming in lower than what economists had been expecting. telling us the pressure around price gains is starting to ease. the reaction being felt in the bond space in particular. seeing the drop in the aussie 10 year yield. japanese bonds indicating see a move lower and a yields when they come online at the top of the next hour. on futures and it the u.s. fairly steady. the question is when we start to see cuts. that is being priced by the market. we did have an exclusive interview with the founder of citadel ken griffin and he says markets perhaps getting a little bit ahead of them selves. >> the fed needs to stay on message that they are going to

put the inflation genie? in the bottle. if they cut -- inflation genie back in the bottle. if they cut too soon, they risk losing credibility around their commitment to a 2% inflation target. vonnie: jp morgan ceo jamie dimon says markets are overreacting to the latest inflation numbers which broadly slowed in october as we know peered in an exclusive interview, jamie dimon said market should prepare for the possibility the fed may raise rates again. >> the right thing to pause for now. we have raised rates a lot. to wait to see the effect on the economy and the u.s. particularly as the fiscal spending, the excess fiscal spending is winding down any quantitative tightening is kicking in. i still think you should repair. people should be prepared for that as a risk management tool. i'm inflict -- i'm afraid inflation may not go away that quickly. >> three month ago, future

ratings downgraded u.s. credit rating and this weekend we saw moody's changing its outlook on the u.s. credit rating. pointing to a sharp rise in debt servicing costs and political polarization. what do you expect in these terms? >> i find it a little ironic moody's doing that today. they are right to point out those issues. i would take polarization off. that has always been true of a democracy. more debt financing. the market is priced as aaa which i think is more right. i also want to point out and i find this almost funny. have a lot of countries rated aaa. they all live under the protection of the american military could i think it is a little peculiar that makes them aaa but not america. america will be fine. we have to get our hands around these problems should they will not a drill -- around these

problems. the debt will not age well. they are right to point it out. haidi: bloomberg has learned china plans to provide at least 137 million dollars of low-cost financing to the nation's housing program. plan would mark a major step up in authority's efforts to boost growth and put a four or attempt to put a floor on the biggest property downturn in decades. bloomberg's chief north asia correspondent stephen engle joins us from shanghai. what do we know about this plan? >> this is another step two put a floor on the property market. we could bring up this or chart of this year to see property investment is likely to have sunk again in october by 9.1% following september's .1% slump. it even goes back further than this as far as the amount of investment going into the

property sector. it is just one illustration of the woes in that area and the drag it has become on gdp and the overall economy. we are going to get those numbers for october later this morning with of numbers like retail sales, and duster production and the like. on the property sector, what we are learning from sources in this bloomberg scoop is the pboc is preparing or possibly looking at a plan to provide at least a trillion yuan, 137 alien u.s. dollars to help the housing market. in particular to aid china's urban village renovation at affordable housing programs. the pboc would inject funds in phases to the big policy banks with the money trickling down to households for home purchases. this is a project that has been spearheaded by the new economic czar in china. we will have to see how it plays out. options we are hearing includes utilizing the psl which is the

-- lending program which was introduced in 2014 when china had another downturn. it allows the pboc to provide low-cost funds through banks to developers of shantytown rehabilitation projects. they tear down the old who tongues and the like and build newer taller buildings and have to move households into those taller skyscrapers. developers would use the money to buy the land for the properties from local governments which would in turn give cash subsidies to households whose homes were demolished. that is basically psl in a nutshell. but it is controversial because when it was deployed in 2014, it was heavily criticized for inflating the bubble in lower tiered cities. we will have to see how this plays out. right now after we saw the bar chart of how property investment and the drag the property market is causing on the economy, maybe

a little bit of inflation in property is not a bad thing. vonnie: you teased their -- can you tell us more about the data due later this morning? what is it likely to tell us about the fragile recovery? nearly >> there are two things to look at. the data we are going to get later this morning where we are going to get retail sales. we're going to get fixed asset urban adjustment. they are coming off a low base a year ago. october last year we were still in the deep throws of covid zero. we had not had that lifted yet. there was just a dampening effect obviously on the economy. when we see the projection for 7% increase in retail sales, it is a bit of an aberration because the indications we are getting is month over month from september to october of this year actually saw weakening of retail sales despite the fact we have the weeklong holiday at the beginning of october. there was indications there were

was not alone spending and not a lot of travel based on other more granular economic data and surveys we have gotten. i reported on those yesterday. we will have to see when the numbers come out. flat in industrial production. . flat on fixed asset urban investment. we are going to get the mlf later today. . on the three out of 15 -- only three of the 15 economists surveyed by bloomberg expect a cup. you've already had two cuts in the mlf in june. 15 basis points in august. not expected to get again. . i would not be surprised because there is a growing chorus for either some sort of stainless from the pboc. could be a policy rate cut of 10 basis point sometime this month and also a rrr cut coming down the pike before the end of the year of about 25 basis points. vonnie: a lot to keep an eye on for the rest of the morning and

of course the biden xi meeting. chief north asia correspondent stephen engle in shanghai. let's take a look at currencies because we had a wild session in currencies after the cpi data. the dollar had its weakest moment in more than a year. tumbled the most in a year. the dollar index was at 12.49 as you can see. it is unchanged right now. it changed about 1.3%. dxy had a four handle. 104 handle for the dxy. we are going to be checking the fixing later helen as well. the yen back to 15039. toward the gdp data coming in 10 minutes time. economists in our survey estimating gdp in japan shrank at an annualized pace of about .4%. coming up, wall street analyst donnie mack on the comments page of corporate america. we will see if it is a sign of things to come.

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haidi: singapore's financial regulator is urging banks to tread cautiously using

artificial intelligence in human facing operations. speaking to bloomberg, he says ai could be risky in sensitive areas such as lending and hiring. >> in financial institutions, it is early days. what we are gathering is most of the applications of ai tend to be back office tiered in front office, it is more risky. what do i mean? if you are using ai to hire, you have to be very careful it is the principles of fairness, ethics, transparency are being adhered to. hiring decisions can be challenged. loan decisions can be challenged. anything that is front facing, are you very confident? it is not a place you would experiment with ai. if you experiment, you would have a strong human overly. and not let ai do its stuff. i think it is being done more in

the mid-office and back office. i think the fraud surveillance money laundering cyber threats, managing those risks are going to see allete more use of ai. you are seeing that beginning to happen. i can extrapolate that over the next five years it is going to be big. front office, i think we need to solve a lot of governance issues, risk issues and how assured we are. it directly impacts people. this is going to occupy policymakers globally next 10 years. it is going to become a huge thing we need to get right. if you get that right, you can fully harness the benefits. haslinda: crypto. mes recently issued crypto permits. is that a way to expedite crypto being a crypto hub in the world? >> yeah. so, over the last one or two years, we have been sharpening our positioning as of the what

you call -- positioning vis-a-vis what you call crypto. we are trying to introduce this term of digital assets. i can see it has not caught on. as early as honey 17 we have been issuing warnings. tell investment in cryptocurrency is a bad idea. this stuff is not money. it has gained so much prominence. and people's attention. people get hurt by investing in at. here, i think we need to ask ourselves about the future of money. if increasingly the world is moving towards a tokenized economy or a financial system is going toward a tokenized structure, what is the medium of exchange? you have seen a range of things happening during the crypto winter. we are trying to strike a balance. to be harsh and strict on cryptocurrency investments. by the time our proposed

regulations come into play early next year, we would have one of the toughest regimes on cryptocurrency when it comes to consumer protection and market integrity. setting very clear tough rural spirit i think that clarity -- tough rules. i think that clarity is important to vonnie: the monetary authority of singapore. bonus season may be a bad news for a lot of wall street bankers this year. two industry reports indicate most bonuses are expected to drop. su keenan has more tiered in some cases, incentive pay could even be cut as much as a quarter. su: that would be the mergers and acquisition area which is the hardest hit as wall street enters its second year of a dealmaking slump. this has been a tough year for banking. . . rising interest rates. . regional banks that failed. other complications. a report from compensation consultant johnson associates

and a second report by options group confirms the trend that it is not going to be a happy banker on a season. thank advisors taking the biggest cuts it looks like. retail and commercial banking could see reductions of 10 to 20% could perhaps the only area doing better is wealth management units. bloomberg has learned wells fargo is cutting 40 to 50 jobs in its corporate investment division. that is the latest major financial firm to cut staff amid the troubles facing wall street. goldman is considering bigger bonuses to retain star traders and dealmakers according to a report from reuters citing multiple sources. as we know goldman has been an area of discontent for any employees because of severe bonus cuts. last year reuters reported the pay cuts could win over employees who did get smaller bonuses last year. haidi: wall street analysts are cutting back on their praise for executives on earnings calls.

is this a sign of tough times ahead? su: if you listen to the analyst calls, you hear the congratulations. you hear the great quarter guys comments. that is a big change. analyst at all of the big banks apparently holding back praise even in a quarter were 82% of s&p 500 members have issued results that beat expectations. it is fascinating to see data compiled by bloomberg that the earnings calls are getting tougher. analysts have cut back on their praise by 29% this quarter. that is the lowest level since the pandemic. setting up this year for the biggest annual decline in praise since the great recession. the fact analysts have gone cold on the praise likely signals tough times ahead. let's look at what corporate execs are facing. they were -- labor costs, rising borrowing rates, heightened political tensions. layer on the fact you have

lingering inflation, the u.s. presidential election just ahead and the war in the mideast still ongoing. one more thing, the weakening consumer demand. investors are starting to worry analyst estimates for 2024 may be too high. analysts getting the feeling they may to start cutting back and they are cutting back first with their praise. we will see if there estimates follow. haidi: su keenan there. plenty more to come on daybreak: asia. this is bloomberg. ♪

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start for free at godaddy.com haidi: breaking news it comes to japan third quarter gdp. . it is a significant miss. a contraction of 2.1%. the estimate was for four chance of 1% contraction. we did expect some shrinking when it comes to the japanese economy over the summer. the impacted trade waiting on the sputtering recovery. that would add to the notion we need to the notion we need continued caution at the bank of japan. also add to the government's case for the latest round of stimulus measures. we are getting when it comes to the seasonally adjusted quarter on quarter number for the third quarter the per luminary reading. a contraction of half a percent. worse than expectations of a 10th of 1%. reversing the gains we saw in

the previous rating. the gdp deflated coming in at 5.1% shared a little higher than 4.8% expected. if you want to break down some of the elements, private consumption stayed flat in that quarter and business spending quarter on quarter still a full of 6/10 of 1%. exports as a contribution percentage to gdp falling by a 10th of 1%. this would be the sixth quarterly drop we have seen in terms of the contraction since the spring of 2020. it has been a stop start period of results which adds to the thought the japanese economy has yet to find the sense of stability. still contending with the strongest inflation or reflation we have seen in japan in decades. a lot of that being filled in the extreme weakness we have seen in the yen. it's get more reaction with our effects and rates reporter mark wilson. when it comes to that annualized number, a contraction of 2.1% quarter on quarter seasonally

adjusted, that was much steeper than expectations. >> it probably speaks to a weak fourth-quarter as the u.s. and china contribution to japan's gdp is styled back. this is not going to get any better before year end. there will be no great turnaround. like you mentioned earlier, the bank of japan, ministry of finance will look at this and think they themselves saw the uptick in activity as transitory. it looks like they were right. looking forward into the fourth quarter early next year, i think the need for this stimulus where the bar is so low to require it, the status quo is going to be maintained. what that does is probably keeps the dollar-yen on dip.

traders have been given a lot of food for thought since last night cpi print. vonnie: why isn't the yen moving? as you said, if it was not the gdp data which i would have thought would be enough to move at somewhere, it would have been the cpi data. >> it is a backward looking print anyway. it is not like the cpi or a job sprint which is a little more modular and dynamic. probably higher frequency. typically, in days gone by, this data would have moved the dollar-yen quite a bit. over the last few years literally. it takes a lot to rock the boat with traders at all. i think the bigger narrative on the day, the shelflife life of the cpi print asked night is -- print last night is going to be two or three days before the yen market starts to price and fed intentions. maybe they look at it and pass

it on the day. haidi: effects and rates reporter michael wilson as we get those disappointing japan numbers. potentially looking at what that signals ahead for the bank of japan. seeing yen traders bracing for the risk of a deeper job as we get into the next period when it comes to the inflation numbers. ppi due toward the end of the month. the cpi read from the u.s., a much faster acceleration of the drop than expected. take a look at treasury futures. we see it carrying the same trends we sell under the previous part of the trading session. treasury futures jumping to the highs of the day. yields dropping by at least basis points across the curve after the october cpi data printed below the estimate of all the october readings. we saw that impact across the treasury markets. that played through as to some

of the reaction we are seeing across australia and new zealand bonds. we did see the initial drop of 10 year yields in australia and new zealand slumping in the early asian trading session by a significant amount. this as we see the repricing of fed expectations. the market pricing at the moment looking at the 50 basis point cut july the odds of another hike have fallen to about zero. canoeing to watch fed implications. coming up in the next hour, live coverage for singapore fintech festival we will be speaking with the prudential ceo and the jp morgan financial institution payments global head. the market opens in seoul and tokyo before that. ♪ be, right? no. we switched to gusto, and paying my team couldn't be easier. gusto gives me unlimited payroll runs, next day direct deposits, and automatically files my taxes.

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>> this is "daybreak: asia." we are counting down to asia's major market opens. markets will be reacting to the tuesday cpi data of the united states, which is widely seen as benign, including by u.s. markets. jamie dimon may be the only voice to suggest the fed may not be done. >> fed speakers really urging caution, with more work potentially to be done, but certainly markets repricing that in terms of expectations when rate cuts will start coming through. let's take a look at the market open. annabelle: this cbi print certainly setting the direction for trading today. opens for japan, south korea, and the start of trading, and yesterday, the session saw that big move lower pulling across

the curve. the five-year for instance down 22 basis points. this morning, we have cash markets up and running, and you are seeing pretty subdued trading so far, but really, it is that reaction we are monitoring across asia because the japanese yen for instance falling down to the 150 mark. another thing we are seeing is that japan gdp data just dropped in the last 10 minutes or so. very big mess. we saw contraction on an annualized basis of 2.1% in the third quarter, and the estimate had been for a drop of .4%, so just another reason why perhaps the boj does need to stay dovish, and it will be another reason that we continue to monitor that yield cap between the 10-year yield of the jgb and its counterpart, the treasury. it is not just eco-data in japan but eco-data in korea to note and we saw that i jobless rate

falling to 2.5 percent for the october meeting. that is even lower than the long-term average, so the jobs market in korea is surprisingly tight, and our bloomberg economics team saying that is a reason for the boj to stick or back another hawkish hold at its upcoming meeting in november, but the outlook today, we will take a look at that reaction we are seeing. 1.75%. we are very close again to that 1300 level, so the korean won very sensitive to what goes on in terms of risk assets and you are seeing really that reaction this morning. japanese or korean stocks rallied. that is a big change we are seeing. nasdaq futures continuing to point higher. this is tech stocks that are really the focus so far in asia. we are one hour into the session for australian stocks. it is rate sensitive sectors

leading the gains. you can see that jump. nearly 3% for the id index. real estate well above the 3% mark and we can show some of those movers in a few minutes. the 10-year yield continuing its retreat with the aussie dollar fairly steady but around the $.65 level. we are getting the iea saying global oil markets are not going to be as tight as expected this quarter, so we are seeing a bit of a pullback, but very big reaction coming so far. it is the day two moved to that session on wall street. haidi: in context, u.s. treasuries had their best day in eight months. take a look at how we are trending at the moment. of course, a lot of that repricing going on in terms of is this the end of the hiking cycle and when the first rate cuts will start to play through. let's get some analysis now from our chief correspondent for asia. are you convinced, given that some of the fed speak is

certainly a little more on the cautious side, not getting ahead of this print? >> i think it is a little bit irrelevant is what the bond market is saying. the bond market is saying that is it, the fed is done. next move is down. the only question is when. and on all sorts of metrics, we had the biggest rally in the u.s. treasuries market since march. what was happening in march? we had the banking crisis when everyone was thinking you were about to drop into recession. it is that same sort of attitude that this is the pivot. the fed is done and there is a bit more confidence now because it's not coming out of a clear sky. there have been signs in some of the employment data, even some of the previous inflation data and other parcels that the fed

is getting close to the end. now the bond markets have said, that is it. you are done. next move is down. we are confident you're going to go, and to is it's hard to see how the fed will get the bond market to listen otherwise unless you get several data points that signal that inflation is not done and that the fed will have to hike or if you had a course of fed speakers coming out and pushing back against this idea. if they simply reiterate that we plan to say higher for longer, the market is going to go yeah, yeah, we have heard you say that before. we did not believe it then, we really don't believe it now. >> we were expecting contraction, but not this big of a contraction. what does it mean for the japanese economy and rates on

the yen? >> it is a little ironic because part of what is hurting the japanese economy is the week yen. why is the yen week? because the boj would not normalize policy until it is absolutely sure it needs to. yet, having this sort of imprint is going to encourage the boj to wait until it is sure the economy is strong enough to take on the burden of nonnegative interest rates. it keeps the boj tending toward that easy side or at the very least stuck in the little. the same sort of thing goes toward having u.s. yields come off, having the u.s. dollar drop , including very strongly dropping against the yen, that also takes the pressure off the boj, so from both sides, when you look at this morning, the boj is likely to take it's time

-- shocking concept, i know -- in moving to normalize policy. annabelle: thank you so much for that. just want to bring you to some pictures now of san francisco. chinese president xi jinping now in san francisco for a high-stakes meeting with president biden. of course the apec summit taking place in san francisco over the next couple of days. it is president xi's first u.s. trip in six years. as you can imagine, it has drawn crowds, crowds of protesters and crowds of supporters on the city streets. this is a fascinating site outside moscow -- this is a fascinating sight outside moscow . contributing editor jenny marsh is there with the latest. i guess these crowds would have been anticipated some may even have been paid for by various groups, but xi will not be

taking too much notice of that. he needs to get where he is going in order to deliver the message he needs to deliver, which is what exactly? >> he has one message only, and that is the chinese economy is in good shape and is a great place to do business. that is what he will want ceo's and others to take from this summit. he will have a hard time convincing some of these business leaders whose companies have sort of struggled in china due to tech crackdowns, harsh covid conditions, more tense geopolitical relations with various countries, so he has a big job to do here, but i think sending the top guy to the summit, he is the person all the ceo's and leaders will want to speak to and to hear it from his own mouth, that is welcome in china. it is a safe, predictable environment in which they can invest.

>> it is a lot at stake when it comes to corporations, particularly big tech have vested interest in the chinese market, but what are we expecting in terms of some of the issues that there probably will not be progress on? we know there's a myriad of them, ranging from taiwan, the south china sea, some of the tech issues as well. >> exactly. these businesses are thinking about geopolitics and china's relationship with the u.s. the two leaders are talking and stabilizing ties, but there are some issues where we are not expecting any deliverables really. taiwan is one of the fraud areas in the relationship with china's increased aggression toward taiwan and biden's increased support for.

there are also other areas. china's economic and diplomatic support for the russian leader. these are things where they will have to agree to disagree. they still are with geopolitical tensions and headwinds. the main thing xi jinping has to do at this conference is to show people they can manage tensions in a protectable way that is good for the chinese economy at this very sort of pivotal moment as the nation undergoes this big growth slowdown it is struggling to get out of. >> jenny marsh in san francisco ahead of that key meeting and of course, we have a few more details in terms of when leaders will be meeting going into wednesday. we will get a press conference as well to kick off at 10:45 a.m. pacific time on wednesday.

bloomberg is also learning china is planning to provide at least $137 million worth of financing to low cost housing programs. it would mark a step up in an effort to boost growth and put a floor under the biggest property downturn in decades. stephen engle joins us now from shanghai. something has to give, right? when it comes to what happens with the property sector. what is this plan about? stephen: absolutely. the onus is now on the shoulders of xi jinping's new economic team that came into place in march. i'm talking about the new economic czar, the top planning body, and of course, the new premier who is in this city as the communist party boss. they have to formulate how to rescue the property market without rescuing it, if you know what i mean. they don't want to necessarily

bail out those troubled developers, so how do you do that? you have to throw piecemeal stimulus to kind of get a floor on this property decline. property investment, zero confidence right now, and numbers will come out again for property investment in october. the consensus estimate is for a repeat of that 9.1% all in october year-over-year, same as in september. it has been a steep slope down for property investment. no surprise. what we hear from sources telling bloomberg is the pboc is formulating a plan to help the housing market and in particular to a china's village renovation program and essentially -- let me just read this out. the pboc, according to sources, would inject funds in phases through the big policy banks with money ultimately trickling down to households for home purchases. one option would be to use the pledged supplemental lending.

i remember when they did this for the first time back in the 14. it is sometimes called helicopter money. it allows the pboc to provide low cost funds through banks through these renovation projects, which are basically bulldozed down, and they build new high-rise and move people in. developers would use the money from the pboc to buy land from the local governments, which would in turn give cash subsidies eventually to households whose homes were demolished. the chief economist jones lang lasalle says this is not to spur growth. ok, well, maybe it is to put a floor on falling property prices, but rather deliver a more balanced development for the longer-term. that has been a consistent theme. common prosperity, three red lines of property from xi jinping. property is to be lived in, not speculated on. it is a continuation of those policies, but also again a realization that perhaps there does need to be some stability.

>> this is a really interesting one, but tell us more about the october data we will see later this morning. stephen: in addition to the property investment figures we are going to get, which will just reiterate what we already know, we will also get retail sales, and we can bring up the bar chart and look at the numbers. consensus estimate for retail sales, again, aside property, consumption is a big driver with exports falling for many months in a row. basic consumption simply has not picked up. 7% looks better than june, july, august, and september, but these are year-over-year figures and back in october 2022, we were in the depths of covid, the end of covid zero -- really, toward the end, and there was suppressed spending. month over month from september is not trending well, so it will

be another suppressed number. shopping and travel, the week-long holiday at the beginning of october did not to realize the kind of shopping and travel that was expected, so we probably will get the information that the recovery, if you want to call it that, is still struggling. vonnie: thank you so much. let's get to annabelle for reaction to cpi data. perhaps we are seeing more stocks go higher. are we? annabelle: it is really about tracking different sectors and how they are performing in relation to that u.s. inflation rate. tech stocks, for instance, very sensitive to rate moves, and they generally do rise in a low-rate environment. at the back of that this morning, the expectation the fed is done with hiking. you are seeing that reflected across the tech sector. japan was really leading here. sony, for instance, 3.5%.

that is one sector to focus on. nvidia really rallying in the prior session, but take a look at real estate as well in australia. this is another sector very sensitive to what goes on with the outlook for rates. we are seeing reit's, listed property stocks as well, gaining off the back of this, tracking what happened in the u.s. session overnight because we did see property stocks on wall street also gaining come but that is another sector to keep and i on this morning. finally, the financials. this is a sector that again does move in relation to rates, but his it's interesting to see what is happening with japan lenders this morning. even though we had the likes of mitsubishi reporting results after the bell yesterday, they were pretty optimistic on the outlook. they also issued buybacks as well and the adr's rose, but you are not seeing that same reaction coming through and it really is after we had that third quarter gdp print coming out of

really an outlier in the central bank's perspective, but you're seeing the topics banks here slide in to start the day, even though you're seeing the broader topics that's gaining. so it's really just that dicot between the fed and the boj. vonnie. yeah, it's fascinating. bill thank you. and let's just take a quick look now at how the broader markets are trading as we open up the asia trading session. you can see the nikkei 225, up 1.6%. the cosby up 1.6% as well. plenty more to come on daybreak, asia. this is bloomberg. on $100,000 margin loan interactive brokers charges just 6.83%. do you know how much your broker charges fidelity and schwab charge over one and a half times

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>> let's cross over to the singapore fintech festival where haslinda amin is a standing by with our next guest. haslinda: that's right. a whole host of business, innovative ceo's of huge companies. good to have you with us. you often talk about this high rate environment, higher for longer. i'm just wondering how that would impact business. some stability in rates, some stability in inflation bodes well. >> inflation impact our customers, and that is the area of performance for us. obviously, disposable income gets impacted, so we spend a lot of time thinking about how we craft that proposition so that we can make it affordable for

consumers, and that is where educating customers in terms of not only to think about that are financial planning but also think about starting up because when you are young, you don't think about health and protection, and i would encourage customers to start to think about that. haslinda: we tell customers it is a pretty selective macro environment. what will drive growth in terms of products? >> if you look at the impacts, it is the retirement savings, the mortality gap, which is effectively the savings that families need. often if there is a death in the family, it will be $119 trillion by 2030. that's massive. after that, the out-of-pocket health expenditure in many

markets, and i think while that's a challenge, that is also an opportunity for companies like prudential to play a significant part both in terms of financial literacy and education but at the same time crafting the right background position. haslinda: you have talked about how potential would do it differently. you don't want to be so reliant on markets like china, india, which are big markets for you. talk about where you foresee growth? >> we recently announced a strategy, and we had to think about the geographic segments, thinking about it in 4 segments. one is greater china. i believe greater china will be a key part of our aspiration. i see on where we have leading market positions across this part of the will -- easy on --

asean, where we have leading market positions. india, which has similar characteristics, but the important part is we are approaching the strategy phase so we can invest in these markets and do not have to necessarily sacrifice in one market to grow the other. haslinda: so you are well capitalized. that begs the question in terms of acquisition, m&a. is anything on the table the next 12, 24 months? >> our first emphasis is organic. we have market-leading position in many markets because we are a household brand. our first emphasis. obviously, we would like to explore partnerships, and if there is an m&a opportunity that has an environment with strategic objectives, absolutely. >> are you having conversations? >> as i said, our first emphasis is organic and that's where our

focus is. >> give us a sense of the kind of growth. can you quantify what you are seeing and also in terms up hong kong, chinese, travelers, citi. >> china mainland is going to be a big part of our future. you simply have to look at the opportunity in china where there's a huge population, significant levels of penetration, significant gap when it comes to savings and protection, and given our joint venture partnership, we are well-positioned to be able to address these opportunities. we have access to 100 cities across mainland and believe that china will provide an opportunity for us for the foreseeable future. haslinda: is there a number? >> if you look at the strategy we announced recently, we believe that we have an opportunity to create value for all our stakeholders.

we get two financial targets. one, the 15% to 20% court on business profit as well as acceleration of cash generation. that should give you a good sense where we are quantifying or thinking about this part of the world. haslinda: great insights. thank you for joining us at the singapore fintech festival. haidi: lots more conversations to come from singapore as the day gets underway and plenty more to come here from bloomberg. ♪

vonnie: the white house says the u.s. has intelligence confirming

israel's assertion hamas and other iran-backed militant groups are using hospitals to conceal and support their operations including the largest in the gaza strip. president biden had earlier called for the medical facility to be protected as fighting around the hospital intensified. meanwhile, the pentagon has quietly ramped up military aid to israel for supplies like laser-guided missiles. the weapons pipeline to israel is shown to have extended beyond provisional agreements. plenty more to come on "daybreak: asia." the power goes out and we still have wifi to do our homework. and that's a good thing? great in my book! who are you? no power? no problem.

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shery: the israel defense force is saying it is caring out operation out of gaza. physically the al-shabaab hospital accusing hamas as a base of operations. earlier the u.s. that it has intelligence confronting israel assertion. and they are using hospitals to conceal and support operations but according to the israel defense force it has been a precise and targeted organization. those are the words for the hospital. tens of thousands are gathering in washington today to express support for israel. haidi: we are getting breaking news when it comes to the inflation front of wage prices in australia. the third quarter wage prices index at 1.3%. that is accelerating from .8% we saw in the previous reading.

-- this comes as we see consumer sentiment slumping in australia after the round of rate hikes. businesses are seeing resilience. alia falling below the bottom 2% readings. they believe that work may still need to be done and further heights maybe all the way. the november rate hike has put new pressure when it comes to domestic finances. we see wage prices holding steady in the third quarter. shery: yeah it was the story yesterday of weakening consumers. today in asia we are focused on

the u.s. inflation rent in the market reaction coming through. overnight it was the move lower in treasuries. we are seeing it again in the bonds with the market across the curve. the aussie 10 year down 13 basis points. what else we are seeing is moved in treasuries baked into a softer dollar. asian currencies led by the korean currency this morning. close to the key psychological 1300 level against the greenback. below its 100 day moving average. in terms of other assets, we have steel, the shanghai contract up 2.5%. we see brought against. and we look at the equity

moves in more detail. the materials are standing out. things like steel and iron ore up 1.7% or more than that. china feeding into this because we see demand for steel and iron or from china picking up with a sentiment check around the health of the economy as well. vonnie: china's corporate bond market has been supporting the economy area some debt with property developers are keeping risk alive. let's bring in cabin. what is the china credit tracker telling us right now? kevin: with you saw -- what you saw with the graphic it remains at level two. an offshore is level three. this has not shown into the broader chinese credit market yet area and the option market we see spreads faulted 2015

levels for a one year fees for the higher risk local government financing vehicles. we see overall spreads faulted the lowest level this year in the past few days. adding default over the course of september and october unsure its fallen to the lowest level since 2015 read the government actions taking ways with the sentiment boost addresses that they have been saying that the government will step in to modify risk with the local government debt and possibly fresh property news. we had news today about the one trillion yuan new funds to aid the housing market. it seems the government is stepping in and the market is reacting to that. vonnie: what are the signs of ongoing angst in the properties vector and what the next steps would be? kevin: in addition to the funding for housing -- a few of

china's private sector investment grade builders saw the dollar bond fall more than 25% october. there's been strong rebound for both in november but they've not fully reverse the declines we saw. there is a big shift in sentiment. things in october seem to be bad. things this month seem to be better as far as sentiment goes. this morning's data may give us clarity to where we will go in the credit market. vonnie: what might today's economic data say about chinese property? kevin: we will see. we have to go with property investment that is a key metric. also the new home sales. and home prices for existing and new homes. -- october saw the straight month of 25% year-over-year

declines according to reinvestment court. it is a private data firm and the number was out of the beginning of the month. that's where we see home sales stabilizing. the property sector will be in a lot of trouble. shery: thank you with the latest on the property china dori. and ralph -- right now tencent will evaluate earnings wednesday. we look at tencent specifically with a track of the broader economic recovery me -- recovery. and joining us now, we have our analyst. however things shaping up ahead of the numbers? peter: it is a little bit of a relief. we talked about the beijing crackdown on the private sector and what it meant for the tech companies including tencent and alibaba. we thought -- it is a focus on the business. games is a key thing for them

and social media and advertising environment. they are also moving into new areas like ai and videos also. this will be a focus on how the businesses are doing at this. it is against the backdrop of a weak economic recovery. that has undercut some of the themes. but a key thing would be how games are performing for the business. they have introduced a couple new games that sound promising. -- on the social media front they are moving more into short videos competing against white dance, the parent of tiktok. the business has been taking off quite a bit more tencent at this point. they took market shares and it should help their advertising in particular. revenues are expected to grow and they invest in new businesses. that will cost money but we will see, profits are supposed to be

up 20% also. and there is healthy recovery. one of the questionable things right now is how they are investing in ai. there are companies in china following the openai model into large language models and ai area they think there is promising opportunity. tencent seems to be a laggard in china. they want to learn more of where they are invested and where they see the promise in ai in particular area vonnie:the othee keeping an eye out for? peter: we have a whole bunch of them this week in china. we have alibaba coming out tomorrow, also jd.com those two companies in e-commerce will give us a read on how are doing china area the economy is weak at this right and we talked about the weaknesses of the property sector tickler. that is for the damper on consumer demand. people want to see with the

single day sales over the weekend, they want to see how alibaba and jd.com have done in the past quarter and what they see from consumers in the weeks and months ahead. vonnie: bloomberg it peter there. other earnings we are tracking today with south east asia biggest internet firm saw a loss in the third quarter. it tested $149 million compared to the profit of 322 million in the previous order. sales rose four point 9%. beating estimate. sea has competition from alibaba and tiktok on a counter. and home depot narrowed its guidance for this year's revenue. and it expects the same for sales to slide 3-4% this year. home depot saw comparable sales drop in the last quarter.

add the ceo said customers are continuing to spend on projects but big ticket purchases are under pressure. more to come on daybreak: asia. 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?

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how much of the glowing up have you done? we know jp morgan has seen transactions in excess of one billion each day. >> blowing up sounds more destructive than it is. the goal is to redesign the infrastructure on how to move asset. we have made more progress we believe than anyone it the world. everything from jvm coin and assets, and so on. in our mind we made a huge progress. you can see our peers following. >> what is driving all of that? where do you see it going? when you look this time around, where would you be? >> i'm hoping for something five-to next. and what would your dude? when you think about how much money, it sounds like a small

number. compared to 10 trillion one billion sounds low but starting from zero and we have launched an annex of time and we watched a couple years ago, we now look at the take off. the numbers have started to take off exponentially. we have a lot of securities companies and using this technology. we think it's going to take off. that shows in the numbers. i always tell my team if it is not growing exponentially what is the point? >> the thing is there are challenges out there. some say it is regulation, is it? umar: it is regulation in some areas. for us our approach has not been to challenge legal infrastructure. in many ways the infrastructure is -- what we do. our goal objective is to rewire

the financial system. if you think about the financial system it is silo by countries, geographies and though on, we are thinking we can use this to rewrite and do things you could not do before even if that is putting a lot of money across borders or doing a settlement of a security where one party send security to another party in the money move that the same time so there is no risk in the system. haslinda: what do you envision it can do that you are envisioning now? what is the goal for you? umar: a couple things that are recent. we announced programmable payment one or two weeks ago. that is the fundamental change in how people think about money. right now, you have your money if you are a large institution especially. they would store money and then move money through other institutions like ourselves and

there is no concept of actually cramming your payment. where you truly have power to do anything at any time based on any trigger. we rolled out programmable payment. it is the first time we've done it. other clients are exploring it and using it. what it means is you can go in and do your phone app and set rules. every monday morning, wednesday, and friday morning at 10:00 look at how many dollars i have, euros, how do i move money around based on triggers and fx and things of that measure. but we will grow this into more interesting things like where is my ship and is it close enough to board? if so what is the weather? that is the promise of this deck. haslinda: it's more customizable in that sense. you started with the ust, and then you went to the euro what would make sense next?

umar: whatever the client wants. everything we do starts with the client and then moves backwards. we are only partly interested in innovation but we are very interested in serving clients that we've never served before. many of them are dollar and euro centric. and one of our biggest innovations is in singapore. i'm imagining that seeing the dollar will be on the agenda not too far oh -- out. haslinda: when you look at the disruption of ai how does this play out in the financial system? how would that look like? umar: i'm not the aia expert. i do not know much about ai. i do think that technology is fundamentally powerful if you can harness it and apply it in a compliant way.

even now we are starting as soon as we announce the programmable payment the next thought was his there are crossover we can do? it is a long way to go from my experience in blockchain tech. regulators and legal infrastructure takes a while before a institution can use new technology. haslinda: quick question before we let you go we know you have a project. talk with us about it. umar: we are big partners of mas. we launched a partner -- it is innovative as a shared ledger across banks. it does not exist in the world very much. that came out of five years of doing project movement with mas. we did project parting last year and this year. we -- you will your war or about what we are doing there. haslinda: you're keeping it secret. but the head of global financial

institution payments at jp morgan. he is the man behind the jvm coin. back to you area vonnie: we will have to handle one at some point digitally or otherwise. thank you read we will continue our live coverage at this singapore fintech festival. they tune or exclusive conversations with the g cash ceo and president and u.s. commodity futures trading commission and mastercard aipac president. this is bloomberg. ♪

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vonnie: corporate stories. manual life is cutting 250 jobs in the wealth and asset management unit. it impacts the u.s., the u.k., canada -- and ceo notes challenges including market volatility and higher for longer rate cycle. they reported in third-quarter earnings -- the business in asia. rap holdings president is leaving less the food delivery company. the second executive to step down in six months after co-founder announced her departure in may. and south east asia ride-hailing and delivery market has yet to

reach net profit as it is forced to keep spending. chinese president is now in san francisco. you can tell us more about the meeting. haidi: we've been talking about the high-stakes meeting with president biden with deliverables. what are the areas we do not expect to see progress. we will see opportunity for foreign relations. let's bring out asia managing director. i could -- it could hurt. any -- help to the deflated valuation and sentiment would be a good. our those expected to benefit? lianting: yeah you are exactly right. any dialogue is good at this stage with the depressed valuation for the chinese asset class. for the sectors that people are paying closer attention to my

that includes the tech sector, and we know the chips sector in china has suffered from the sanctions by the u.s.. and you need that we have seen from the dialogue between biden and xi is the likes of mis-c to benefit -- ms ci to benefit from it. and there's another sector people are watching for which is the climate related sector which is the green energy sector. china and u.s. rx acted to a now a climate commitment in that meeting in san francisco. depending on the degree of commitment, the likes of solar makers, wind turbine makers and other energy infrastructure related names could rally. vonnie: how are investors prepared for this?

lianting: i would say so far from the people we have spoken with their position -- going into it. while there may be good outside or not it pecking a lot of concrete achievements between the chat between biden and xi, people are looking at the long-term perspective of this improving the relationship between u.s. and china. any kind of progress would benefit chinese stocks a bit more than u.s. stocks. that has been priced into china stocks and slowing the economy. vonnie: are asia stocks managing editor. and crowds of protesters are outside of san francisco -- i

mentioned earlier some of the people in the crowd paid to get to where they were going. bloomberg does not have evidence to support that. now for a look at stocks to watch on market open. u.n. chinese property developers say beijing is looking to buy $137 billion a housing market. and a big day for chinese earnings with jd.com tencent. among those -- to report wednesday. and still to come we speak with president and ceo marcus is on --sazon. and others. this is bloomberg. ♪ ou, too. take your style quiz today.

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