shery: you are watching daybreak: asia coming to live from new york and sydney. haidi: we are coming down to asia's major market opens. australia has just come online. asia is set for a cautious open. the treasury rally facing a fresh test with mondays 20 your auction. the openai ceo is said to hit an impasse over the makeup and the role of the company's board. china's taiwan friendly opposition in disarray as talks stumble ahead of january's elections. this is the set up as we get into the start of trading. it is looking directionless after a big week last week. we saw a breather being taken by wall street investors as we got into the end of trading on friday. the staggered open here and

indicated upside of half a percent. we will let that get started. we are also watching the moves we see across currencies after the significant way we solve the u.s. dollar having to take the defensive position. that is being given a breather when it comes to the beaten-down yen. also a little bit of strength when it comes to the likes of the aussie dollar. the gain of 2.7% and strength we saw across the kiwi dollar. the dollar-yen sitting at 149. chicago nikkei futures looking negative. using futures off 2/10 of a percent. we are expecting more weakness to come through from mainland china. we saw the csi 300 index falling even with the better geopolitical news. china lpr today as well. a few bits and pieces we are watching out for. a quieter start to the week. shery: especially in the u.s.

because we have a shortened week with thanksgiving later in the week. futures needed after we saw small moves on friday's session. the s&p 500 managing to gain for three consecutive weeks. we were watching for anything the fed had to say. we are going to be watching for the fomc minutes coming out on tuesday for an indication of where the central bank is going. markets seem to believe the fed has ended or is about to end its tightening cycle. treasury markets mixed on the friday session. the two year yield slightly higher. we are watching the oil space. we saw oil rebounding in the new york session on friday we are still talking about four weeks of losses. four in wti. we are seeing it come online to the downside. there was expectation on friday

opec-plus would come to help prices. especially goldman sachs saying it would act at the end of the month when they would meet. we have seen technicals accelerating the losses. the many concerns weighing on oil prices. haidi: let's go back to the treasury market development rally facing the next big test. the 20 year bond auction could help determine whether investors are confident the bond selloff of this year is over. garfield reynolds is here with more. is this a sanity check? >> perhaps a check of how insane the bark it -- the market wants to be. all joking aside, it is a key test. you can see the way things got quiet on friday. they are looking quiet now. some concerns we have gone too far too fast.

in light of ways that would be lovely for the -- in a lot of ways, would be lovely the treasury market is if it went tilt smoothly but not too smoothly. friday was exceptional because we had a small move in yields. up until then, we had a lot of bouncing around for about two weeks. yields would drop by a lot. then they would jump by a lot. we had the 30 year auction the week before last of that was an extraordinarily bad auction. that set things off into a reversal. then we came back down. ideally, investors are probably looking for treasuries to act more like a safe asset. less like a speculative tool, which of that has been the case for the last few months. as people try to work out as you

mentioned, is the fed done? i think there is a bit of extra time to think this week because there is not a lot in the way of data outside of the fed minutes. looking for if you are a bond investor, you would like to see a quiet week because there have not been many over those. shery: we will be watching the fomc minutes as you say for any clarification on why we got the comments that sounded a little dovish. what about the earnings season? over 90% of the s&p 500 companies having already reported. garfield: the earnings season has also probably helped to put a little bit of extra support in for the bond market. as ever, there have been

outstanding surprises to the upside. it has highlighted the concerns how strong companies are in the face of these high yields. there has been fed commentary about this sort of issue. monetary policy acts with a lag and we have started to see some of the effects come through with the economy we had expected well before now. the banks in particular were showing some difficulties. that has helped to create this downside by for yields and upside bias for the bond market because stocks are not looking as certain as they have been peered ease and as they have come back up, a fair bit has been driven by yields come down

and the idea the fed is done rather than a strong sense earnings are so robust that they can cope with whatever the fed is going to throw at them. shery: our chief rates correspondent for asia with a preview of what to expect this week when it comes to market moves. let's turn to the turmoil at openai. surface -- sources say efforts to reinstate sam altman are hitting a snag peered a group of staff and investors have been pushing for his return. annabelle is tracking the latest from hong kong. it is a fluid and fast-moving situation. do we have a possible deadline for resolution? annabelle: a number of deadlines are being sent over the course of the weekend but the next one we are hearing from sources is sam altman and his supporters have set a deadline of 5:00 p.m. san francisco time.

saying the board would need to cede to his demands. it has been a number of these deadlines set over the course of this weekend. it could be a moving target. the resolution it could come quickly if it does come at all. what we know from social media, san altman has been at the openai office in the last couple hours. we know there are a lot of people who want to see him reinstated. this comes from people inside openai. the interim ceo, openai's chief strategy officer. a lot of people at the c suite want to see him reinstated. also have investors. chief amongst them is microsoft. we understand microsoft's ceo is the one leading these negotiations going on behind the

scenes to bring sam altman back and try to negotiate and reach a resolution between these different factions of the board. what does appear to be at stake is at the board level because there are questions over the makeup and the board -- and the role of the board should take into the future. annabelle: what are the major -- haidi: what are the major issues when you're taking a look at this at the board level? annabelle: the key issue for openai and sam altman has come down to the commercial aspect of artificial intelligence. it is something that has come up against questions around safety, education. sam altman has driven to turn ai which did start as a startup or nonprofit operation into more of a successful and commercial business so there have been a lot of points of difference at that board level between the

pace and the scale at which they should be cranking out products, signing up customers. this push for commercialization has run headlong into questions over the safety of ai tools. that is the key question. sam altman, we know he is said to be pushing for governments -- for governance changes. sources are asking cannot be identified because this is a private negotiation coming along quickly. shery: i guess it will depend on how the negotiations go but given what we have seen so far, what can we expect from sam altman that as you said may be open to returning but with some preconditions attached? annabelle: he could look to return. he may want to see changes at the board level. it is the role he would take. would he want to come back as ceo of openai?

would he want to push along with other ventures? there been a lot of high-profile investors who said they will follow sam wherever he goes next. sam altman has been looking to raise funds for a chipmaking start up. this one is supposed to be focused on ai chips. we know at this point in nvidia does control the market for ai chips. . 90% of the market. sam has been fundraising for a new venture that would be seen as a competitor to nvidia if it was successful. these talks are in the preliminary stages but he has apparently been fundraising around the middle east to try to raise some cash for this next endeavor. the key question is what happens if this -- happens at this deadline? are we going to see the board accepting his demands? we should note he is looking for

some sort of statement that would've is all of any wrongdoing according to people familiar with the situation. shery: annabelle joining us from hong kong. we have breaking news out of argentina. milei has won argentina's presidential election. masa is saying he called milei to congratulate him on the win. the democratic system in the country remains strong. this is the presidential candidate who is also the economy minister of argentina. now conceding defeat to milei who is the libertarian firebrand that has really surprised markets and the public in argentina as we are now seeing

the results of the second round of voting for south america's second largest economy. milei has won argentina's presidential election. this is bloomberg. ♪ giving tuesday is a global effort that encourages people to do good. this year, when you choose shriners hospitals for children® you're choosing kids like me and me and me. this year, please support shriners hospitals for children® because when you do, you're not just giving to a hospital. you're helping change the life of a kid like me and me and me. i give to shriners hospitals for children® because i want to be a part of something amazing. i know my gift to shriners hospitals for children® makes a difference in the lives of children. our support gives kids a bright future. when you support shriners hospitals for children®

you're joining thousands of other caring people like you who have helped kids like me do amazing things. when you call the number on your screen right now and give $19 a month. just $0.63 a day, you'll be making a life changing difference for a kid just like me. your support helps us do amazing things. we never thought would be possible. and this is how we say thank you. thank you! thank you. because of your support, we can say thank you by having the life we wouldn't have had without shriners hospitals for children® yay! shriners! yay shriners! with your monthly gift. we'll send you this adorable love to the rescue® blanket as another way to say thank you. plus, its your reminder of all the children who now have hope because of your support. go online right now to loveshriners.org to give your monthly support so more kids like me

get the care we need to be kids. thank you for giving. please call right now to give if operators are busy with other caring donors, please hold patiently or go to loveshriners.org to give. >> when i take those uncertainties down to the level of the monetary policy making body i work for, we are not certain about whether inflation is on track to return to 2%. we are unsure about the length of lags and whether they are behind us or still to be fully realized. >> we are likely at or near the peak of where we need to be in terms of having a sufficiently restricted stance of monetary policy that will sustainably

bring inflation down to 2%. i think the recent economic readings reinforce my view that is probably correct. shery: taking a look at the week ahead, we will get the latest from the fomc meeting minutes on tuesday. the recent u.s. cpi print showed encouraging signs for the fed's inflation waiting efforts in markets are increasingly convinced the central bank has completed its hiking cycle. the october report will likely confirm cost inflation picking up again. he related price increases for imports inflated by the yen's weakness may lead companies to mark up prices. we will also get inflation data from malaysia and vietnam. on thursday bloomberg expects bank and asia to keep rates unchanged after a october surprise hike. we will also get a rate decision from turkey. other economic data to note.

one and five year loan prime rate as agents in china. third-quarter gdp data from thailand and singapore and australia's westpac leading index numbers. that is your week ahead. haidi: let's get a few views when it comes to the regional economy. a senior economist for apex the medical research. great to have you with us. we have seen a lot of repricing as to fed expectations and what we see for the u.s. economy. you see the same level of adjustment of expectations for asia where the growth has been pretty resilient but the stories are a little more idiosyncratic as well? >> i think if you look at what the fed minutes or the decision would actually offer us in asia, i think the challenges about central banks is not as feared. on the one hand, if the fed really decided this is the peak

rate it will reach, the pressure on a lot of asian economies will definitely be not as feared. it is not as likely to see more asian central banks that have the urgency to hike rates even more especially if on the one hand growth remains resilient on the other hand there are ongoing challenges happening across the economy. if you look at the divergence, there are economies that continue to suffer from the downturn in the manufacturing cycle. on the other hand, some of the economies still seem resilient. wage may stay rather high but generally inflation will probably come down. there will not be a strong case for a lot of central banks to act further. at least most of them. haidi: the outlier obviously is china. beyond the lpr rates decision

today, we are looking ahead to what further easing measures we might get in the next quarter and throughout the course of next year. do you think policymakers need to do more? >> definitely of course it depends on what kind of growth target the chinese authorities want to achieve. given what has happened in the past one or two months and we are quite confident we will see more liquidity injection into the chinese economy. it can be -- cuts by another 25 basis point before the end of this year. or other medium-term liquidity injection. if you look at how many bonds the government needs to issue to fund a one trillion bond infrastructure program, it will need more liquidity into the market. on the other hand, whether it is likely to see more rate cuts,

the pboc will be more conservative on debt because a lot of chinese commercial banks are already using into implementing current policies such as lowering the outstanding mortgage rate. it does not seem to be the right timing to do so especially if the economy is not performing as great as the past few years but is resilient in the second -- the chinese government waiting to take the short-term cost. haidi: how big is -- >> if you look at the property sectors in china, i think the biggest problem is not in home prices and the general sentiment in household. of course there are short-term headwinds but there is still demands around 50% of the home transition is happening. versus 2019 and 2021.

which shows it is not a doomsday scenario. the problem is a bit more challenging if you look at it from the developer and corporate side. a lot of the developer space, they have high leverage. they cannot survive with the decelerating home sales. if you look further, it has fallen 20% versus last year still. there would be more of an effect to different sectors in the economy. the government will need to act further to boost the confidence. if the situation lingers on like this, we will see a greater systematic risk even though right now it is rather contained. haidi: senior economist for apac thematic research. we do have breaking news when it comes to the argentinian vote. shery: milei is expected to

become argentina's next president after wending that -- after winning sunday's runoff. masa conceded before the official results were released and said he called milei to congratulate him. this feels like a rapid fast-moving development before the official results have been announced. tell us about what is happening and what is the economy minister saying? >> this is an historic moment in argentina where javier milei, an outsider candidate proposing medical economic policies has been elected the new president of argentina. masa conceded. we still do not have official voting members but masa said he called milei to congratulate him and conceded he lost. questions are going to go toward milei's radical economic

policies. he has considered changing argentina's national currency from the peso to the u.s. dollar. how does that work? he has talked about closing argentina's central bank. it is not clear what the set -- with the technical steps would you to get there. markets are going to be concerned about a lot of uncertainty details at this point. haidi: huge challenges for the economy. can the markets -- were the markets prepared for this is one of the possible scenarios and how extreme do you expect the reaction to be? >> we reported markets were not expecting a milei victory. bond prices had been a fairly stable in recent weeks and the parallel exchange rate, argentina has ultimo exchange rates. the parallel which was free throwing -- free-flowing, was stable. orchids were pricing in a massa

victory meaning the incumbent government would continue. those expectations have been overhauled within a earlier than expected result. massa came out and conceded he lost. we do not have official results but we know from massa's speech milei will be argentina's next president. orchids are going to be in for a ride. you are going to see the global bonds trade tonight and tomorrow morning. we will see the currency go on tuesday or wednesday because argentina has a national holiday on monday. the peso will not be trading but bonds will be trading overnight in global markets. haidi: we have plenty more to come on daybreak: asia. this is bloomberg. ♪ at pgim we can help you rise to the challenges of today,

when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today. if you're trying to get a view of the whole organizational financial health and you're trying to do that through multiple systems, that makes it very, very cumbersome. ♪ it's not just tech, it's not just people. it's how they work together to provide that experience to the customer. as a finance organization that is what you want to do. ♪

haidi: range bound session so far when it comes to what we are seeing for the u.s. dollar. the big moves we saw last week. the dollar edging a little higher tiered narrow ranges of trading so far. this week we have the u.s. thanksgiving holiday. aussie dollar starting to look a little more positive. we did see a surge of two point 5%. the kiwi dollar moderate after the gains of the previous week. dollar-yen a little softer. the young getting more risk bite -- the yen adding more respite. so... i know you and george were struggling with the possibility of having to move. how's that going? we found a way to make bathing safer with a kohler walk-in bath. a kohler walk-in bath provides a secure, spa-like bathing experience in the comfort of your own home. a kohler walk-in bath has one of the lowest step-ins

of any walk-in bath for easy entry and exit. it features textured surfaces, convenient handrails for more stability, and a wide door for easier mobility. kohler® walk-in baths include two hydrotherapies— whirlpool jets and our patented bubblemassage to help soothe sore muscles in your feet, legs, and back. a kohler-certified installer will install everything quickly and conveniently in as little as a day. they made us feel completely comfortable in our home. and, yes, it's affordable. i wish we would have looked into it sooner. think i might look into one myself. stay in the home and life you've built for years to come. call... to receive $1,500 off your kohler® walk-in bath. and take advantage of our low monthly payment financing.

annabelle: a check on markets. half an hour out from the opens in seoul and tokyo 30 minutes into trading for aussie stocks. we are looking muted once again. it does follow the u.s. session. we are starting to see this excitement around the fed looking to cut rates by mid-2024. excitement is starting to dissipate. investors are waiting for the next catalyst. what is going to be the next driver for the direction of equities. it is looking fairly quiet. fomc minutes due tuesday. it is going to be a quiet week overall. we are approaching the thanksgiving holiday. the direction fairly flat. let's take a look at this terminal chart. you can see the direction of the dollar. actually wiped out all of the gains made over the course of 2023.

what is driving that is the moves in the greenback. we are seeing this pricing that the fed is going to start cutting by mid-2024. it is the softer than expected eco-data in the u.s. reinforcing the narrative the fed is done with its tightening program for now. off the back of that, you have seen asian stocks looking to test the 200 day moving average for the first time in months. that is a bullish factor. what is interesting to note is as you have seen the global rally over the past few weeks, given the excitement around the fed, it is chinese stocks lagging. have seen the msci china index underperforming global stocks for three straight weeks. shery: we are following the latest geopolitical developments in the middle east. the u.s. says a deal for a must to released hostages taken during its october 7 attack on

israel may be at its closest yet. qatar is mediating negotiations sees good progress being made. the bloomberg editor joins us with the latest. there are still more than 200 hostages in gaza. what do we know about the state of these negotiations? >> these talks have been going on for weeks now. many people including the united states would like some kind of pause if not a cease-fire that would allow hamas to regroup a bit. this is like the strongest signal we have gotten much from everyone. united states, is real, the cabinet is meeting to discuss the deal. there are reports the head of hamas has reengaged in the talks. everyone is saying it looks close. president biden just said now i

will tell you if they are free. haidi: israel released a video that purportedly shows a tunnel underneath gaza's hospital. this was a hospital where the raid that was conducted was the subject of much international attention over the past couple of weeks. >> yes. israel came under enormous criticism including from the united states for its raid on the hospital which is the largest and most sophisticated in gaza. israel said this is a major command center for hamas and they went in and initially it did not seem as if they had found anything. i think israel felt under a lot of pressure to show hamas was using it as a command center. and there were tunnels behind it

as they said. today they issued their strongest evidence yet as you can see right now of quite an elaborate 10. it goes down about 10 meters. there is a spiral staircase. it goes 55 meters out before it gets to what is known as a blast proof door through which fighters can shoot at you and cannot get shot back at. israel trying to prove to the world the attack on the hospital was not for its own sake. that it was going after hamas. haidi: bloomberg ian fisher on the war in gaza. we have breaking news when it comes to corporate news we have been following out of australia. optus, australia's second largest telecommunications

company. after we had a nationwide shortage that disconnected millions of customers, disable parts of the public transport network. have heard the ceo has resigned. the cfo will assume the role of interim ceo. we did see last week she was repeatedly asked by senate committee investigating the outage if she was considering resigning. whether the company needed fresh leadership. she replied her focus had been on the crisis and she had not been thinking about her leadership. there had been a report she may quit as early as this week. have seen the optus ceo now resigning or the cfo assuming the role of -- now resigning. the cfo assuming the role. the november 8 outage struck optus a little more than a year after it was hit by a major cyberattack. we saw over 200 emerging --

ambulance and firefighters failed to connect. optus under by singapore telecommunications. let's get back to some of the geopolitical news we are following. an alliance of opposition forces in taiwan appears to be unraveling days after forming. the parties have been able to agree on a joint candidate for president after announcing a deal last week. stephen engle is with us. what has happened and what now for the opposition? >> what would a taiwan present shall be without some drama? there are 54 days until the election on january 13. four days until friday. friday is significant because that is when the candidates have to officially register their candidacy. four days left or if you include

today, five days for the opposition to regroup and possibly reform some sort of alliance. last wednesday, the main opposition parties formed an alliance that they would with the help of the former president as well as the party boss, they all got together and decided we need to sort out opinion polls, public polls as well as internal polls and see which one of you two guys is going to be the top of the ticket. neither one wants to run as a vice president. gou acquiesced and said ok. if i win but it is within the margin of error, i will acquiesce. long story short, by saturday

these two parties could not find the right definition. they could not decide on who is going to be the top of the ticket so it fell apart. where does that leave us? it leaves the incumbent party, the more pro-independence party led by the vice president at the top of opinion polls. i spoke with gou. they all say, the opposition all say beating this man of the dpp, the incumbent party, is the number one priority. gou says he is going to continue to run as a presidential candidate the alliance has fallen apart but he is open to negotiations. kmt says they will continue to negotiate for the rest of this week. a new deadline for this friday. shery: i cannot imagine markets

liking the uncertainty. >> the markets love the fact the alliance came together with some sort of pact last week. every day last week, the benchmark taiex index was up. the new taiwan dollar was up 1.5% against the greenback. they liked the more pro-business pro-engagement with beijing slant of the opposition parties. the markets tend to like that rather than the geopolitical struggle but will likely ensue if the dpp rent another five years in office. another term for the dpp which favors more of the status quo pro-independence de facto independence stance. we will have to see how the markets open up now that the opposition is in disarray. shery: bloomberg's chief north

asia corresponded stephen engle joining us from hong kong. we take you to live pictures of argentina. we are going to the liberty advances headquarters in buenos aires as people are celebrating the victory of javier milei now that segio massa has conceded defeat. we are starting to see official results being released. massa had conceded defeat even before the results were out saying argentina's democratic system was strong and 11 million argentines still voted for him in the election. but he did acknowledge defeat and said -- and sergio massa conceded to javier milei, the libertarian firebrand that wants to not only shutter the national bank and all arise the -- and

dollarize the national economy. this is bloomberg. ♪

haidi: love the stories we are watching today, data from the cftc shows speculators ramping up their bearish stance on the yen. barclays is expecting another

year of record profit in japan on the back of the countries debt and rates market. nippon use in confirms it operates a ship that was seized in the red sea. japanese markets will open at the top of the next hour. despite concerns about longer-term weakness in the yen, a little bit of a breather when it comes to the japanese currency on the back of the weakness we have seen in the u.s. dollar. yen is trading close to a two week high. futures are signaling a gain when it comes to japanese bonds. we dropped as much as 1% on friday. that was the lowest we have seen for that pace since october 31. so much of that has to do with the weakness we have seen over

the last couple trading sessions when it comes to the u.s. dollar. shery: japanese prime minister kishida has wrapped up his trip to the u.s. meeting with president biden as well as the leaders of south korea and china. he and biden discussed global security and received an invitation for a state visit to the u.s. next year. japanese pride is minister the japanese premised are held talks with chinese president xi jinping. japanese print minister discussed boosting economic relations with his south korean counterpart. the diplomatic charm offensive comes amid falling popularity for the kishida government in japan. writing slipped across the board with a poll showing a drop of 10 percentage points. the deputy director of the indo pacific program of the marshall

fund joins us. given the pressure premised are kishida is feeling at home, how important were these meetings? >> i think if he is going to turn things around, diplomatic achievements are going to be part of it. in the spring after he hosted the g7 in hiroshima, he got a nice bump in his approval ratings but that proved short-lived. i don't think he can rely too much on diplomatic achievements if he is going to turn his fortunes around, it is going to be at home and communicating he has a serious domestic agenda at home. shery: how difficult is the situation at home for prime minister kishida especially given his policies seem to live in the shadows of the former president shinzo abe? >> abe fundamentally reshaped

foreign and economic policy. his successors have been carrying the work forward have not been able to come up with any new or exciting or something that will connect with voters. we have seen a lot of continuity with monetary policy. not trying to rock the boat to much with monetary policy and his choice of a boj governor. fiscal policy, seeing the same kind of move in two directions signaling long-term fiscal sustainability. in the near term, lots of stimulus. that is very similar to the abe way. keisha is doing -- print minister kishida is doing many of the things abe did. things are not really headed in the right direction. there's definitely a sense of is there anything new? is there anything different? is there anything i minister kishida is doing that will -- shery: prime minister kishida

promised under the slogan of the economy economy economy he would prioritize the economy above everything else. it seems the japanese may not be feeling positive about the state of things at home. how has the continuing weakness of the japanese yen at a time when inflation is at play affected the everyday japanese person right now? >> it has been a consistent weight upon kishida's approval. the weak yen. it is not quite at the same boom for the japanese economy it was in the past exporters have moved so much manufacturing offshore that now the impact is felt by households. they have not had a good answer to that. have had these camillus packages trying to give households relief for higher costs of food.

the effect wears off and you are back at square one. with the yen persistently weak, this pattern is going to continue. with the tax cut proposal, i think kishida is seeing unexpected pushback within the ldp. the short-term measures attempting to boost his numbers but there is not any strategy here. he is encountering substantial pushback within the ldp. shery: even the promise of tax rebates and more money for the public do not seem to have helped his approval rating. getting pushback within his own party. is there anybody else right now in the ldp or the opposition party that could replace him? >> i think kishida thus far has benefited from the fact there are a lot of problems facing japan.

the prime minister has a busy agenda. i think that has shielded him to some extent because most people realize to take the premiership now means a series of headaches at home and abroad. it is not the easiest job. i don't think you have seen serious moves yet but i wonder as these numbers persist, you are seeing reports about meetings between different higher level ldp figures. you have to wonder as the prospect of a general election gets closer and kishida has wanted to call a snap election and that has not happened but we are going to get to a point we are halfway the check -- halfway through the term. you might have the ldp try for someone else. as you have in ldp leadership election september of next year, the likelihood you will get some candidate running against him, if kishida is not able to call

an election, you're going to see a challenge in the election. shery: good to have you with us. deputy director of the indo pacific program of the german marshall fund. you can catch japan ahead every week, every monday at 8:40 p.m. in tokyo. bloomberg's subscribers can watch live on the terminal using the tv function. this is bloomberg. ♪

shery: bloomberg has learned blackstone is the front runner to when a portfolio of commercial property loans from failed like never -- fed lender signature bank. the regulator looking to offload $17 billion in debt. su: that is the portfolio being bid on at this point. this is part of a greater effort by the fdic to offload already 3 billion in loans. that is the total it sees when -- it siezed when signature bank failed. regulators have been trying to sell off the loans to the best bidder. they have been marketing loans backed by retail, industrial, office and apartment buildings. bloomberg has learned from people close to the matter blackstone has emerged as the lead bidder for the portfolio of

17 billion in commercial property loans. the sources say ft ic officials are in final discussions to declare the blackstone bid as bringing the lowest cost to the agency. the best fit according to their categories. blackstone is said to be in talks to partner with another firm, rialto capital which sources say would help service the loans. no official comment from blackstone or rialto. sources say these deals can be complex. they are still being hammered out in terms of nuance and the actual term is still in flux. haidi: given the decline we are seeing in commercial real estate values, the deal is being closely watched. su: just what this portfolio and other loans might be valued is of great interest. commercial real estate has seen its value plummet both because of pressure from the rising

interest rate and a lot of deals that would normally take place have stalled out. you have to consider signature have been a big lender to apartment builders, landlords in new york city. there is a lot of interest there as well as to what the packages would bring. those buildings were not part of the package blackstone is talking about. also very interesting the bidding process has -- in major financial firms. it is not clear how many firms but many of them like blackstone have partnered with other firms in this process. haidi: su keenan with the details. take a look at some of the stocks we are watching as trade gets underway in korea and japan. your shin noya will increase the number of stores. boosting net income guidance for

the full year. watching tokyo moraine boosting income outlook. those are stocks we are watching going into the market open. also coming up, julius baer will be joining us. why they see the stock rally going and's the beginning of next year. we also preview chinese lenders loan prime rate decision with standard chartered bank should the market opens in seoul and tokyo are next. this is bloomberg. ♪

the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com (aidyl) hi, i'm aidyl, and i lost 90 pounds on golo. (we did it) i struggled with weight loss and weight gain my entire life. with all the yo-yo dieting i did in the past, i would lose 20, 30, 50 pounds just to gain them over and over again. in one year, i've lost five sizes, and i'm on my way to lose another three. with golo, i can do it. (announcer) change your life at golo.com. that's golo.com.

shery: this is "bloomberg daybreak: asia" counting down to asia-pacific's major market opens. it is a week of light economic data and big events, fomc minutes later this week, but it is a holiday shortened week with america celebrating thanksgiving. haidi: a little bit of data, rba speak here as well, but it does like we will be comparatively in for a quieter week. certainly the markets at the moment making it slowly to get into the start of trading, and when it comes to fx we are looking at the reverberations of the weaker u.s. dollar. annabelle: absolutely, we have now given up all gains made over the course of 2023 for the greenback, but that's kick off your the open for japan and south korea, it is light on the data docket over the course of this week.

fed minutes, that is one of the highlights to tuesday, and also this week in japan and we have got the inflation print due on friday expected to confirm cost push inflation is picking up again. this could be seen as a recent by the boj to stick with more stimulus, not less, but the direction for equities, we are really flat as we come online. nikkei225 barely unchanged. not much move either coming through in yields for 10 year, cash treasuries also just opened. it is going to be quite at then we, we have got thanksgiving coming up. let's change on, because the direction for korea today, let us take a look at the movement, a little bit of wheat is coming through but fairly range bound in the session. we are keeping and i korean won, so sitting around the key 1300 level. a key psychological level we have been moving around the past

couple of weeks given the direction of the greenback and the pricing coming in the traders are still expecting the fed will start cutting rates by mid 2024. let's change on, because in australia today the stock we are watching -- the company rather is optus. the ceo has resigned, the parent company confirming that news. we are seeing or at least in australia but still seeing asx 200 fractionally higher. it is not big moves either. oil as well a little bit to the upside, and we are on the countdown to opec+ do in the days ahead as well, so a little bit of a wait and see but not much of the data docket either, so perhaps this will be a consistent narrative over the course of this week. shery: our next guest says the higher for longer narrative is last month's stories.

mark matthews it joins us now from singapore. great to have you back. given the softer data we have been seeing recently, can we borrow more confident -- can we be more confident the world is nearing peak rates, and what will that look like in the next couple of months? >> i very much think so. at the 10 year is no longer at 5%, it is back at 4.5 percent, and a language out of the federal reserve if you put it all together is moderating into a less hawkish one, and we have data that is softening. i think most importantly on the labor front where the unemployment rate has gone back up to 3.9%, and we risk triggering a rule, sahm was at

the federal reserve when she devised this rule that if the unemployment rate is .5 of 1% below its low of the previous 10 months, usually you were going into a recession, and she actually wrote in bloomberg just a week ago that it did not happen this time because of all of the irregularities of covid. nevertheless, i do think if you add up all of what i just said, plus the softening of the dollar, then we can look forward to a continuation of that year and rally, because even if we do get a mild recession, if that is accompanied by lower rates, which of course it would be, and unbalance the stock market would like that. shery: so where are you positioning then at this point? >> well, we have not changed anything ourselves. we are still very focused on u.s. equities with a biased toward quality growth, which of course means a big cap tech

stocks. there have been a lot of conversations about how they have done too well, and there should be broadening out of the performance of the market, and there could be a broadening out of the performance of the market, but still we like those companies. they have structural growth ahead of them. it has not change particularly with the generative ai story, and beyond that investment grade corporate bonds, which clearly have not been a great place this year, which means they have great value, yields upward of 5%. in asia, we like indian equities. they are trading at their long-term average price earnings ratio, but they have a earnings growth, which will be in the high teens over the next couple of years, and there are not a lot of places in the world where you find that. shery: and what about china? we continue to expect that

perhaps the economy will receive the blues from all of the stimulus measures that we have seen so far, but investors still seem anxious about loading up on chinese assets. >> i am still not seeing enough signals in enough sectors to say that the economy has definitively bottomed. there are a few, tourism, e-commerce, but the broader economy, i think that recovery is elusive despite all of the stimulus you have mentioned, so it is cheap and it lacks a catalyst. and i think that the problem in china is a lot of people are underwater, particularly the locals, so we need foreign investors who are kind of knew to that market or at least have not lost as much money in it to come in and buy it, and i am afraid there is still a lot of reluctance to own china on the

part of foreign investors because they are worried about capital control sanctions, that kind of thing. shery: we have seen oil rebounding on the friday session . energy has been one sector that has either people liking or hating. going into next year at these levels around $80 per barrel for wti, buy into the energy sector? >> the first thing i would say is the energy sector is not a bad sector because it has enormous dividends, dividends for megacap energy stocks are 6%, 7%, eight percent easily, so you can own them profitably over the long term by accruing that dividend, and i hope i am not going to make a mistake by saying this, but it reminds me a little of tobacco. tobacco, which we are not recommending by the way, has performed on par with the s&p

over the past two or three decades because of its enormous dividend yields, so despite all of the esg concerns and the obvious danger of tobacco, and we do not like tobacco in we do not recommend it, it has been a good place to invest. oil is the same, it will kick off a tremendous dividend, because as we transition away from fossil fuels to the alternatives, which we are clearly doing, there will be less oil produced in the world, but that will keep the price relatively elevated, and they will be able to rather than reinvesting payout very high dividends over the next decade, so we do not like the oil sector in general, we do not like the price conceptually, but we are moving to a new era away from fossil fuels to alternative energy sources. however, i would not be against owning the big emp companies. shery: going back to her we

started this conversation and you liking u.s. growth stocks especially focused on megacap tech, does that apply to some asian names in the tech sector? south korea, japan, taiwan, and even china has some big tech giants. >> in north asia our bias is toward japan. we do like japan, and japan is a very vibrant robotics and automotive space. i do not know if you would classify that as technology, and they are benefiting from china's reorientation of its economy away from consumer technology to sort of hardware, semi conductor, high end technology, and it needs a lot of robotics to do that. shery: mark matthews, always great to get your insights.

i believe we have some breaking news over the developing openai story. haidi: it has been high drama and high-stakes. this is according to the information which is reporting microsoft is considering taking a role on the board if sam altman returns to openai according to two people with the talks from people in this information. microsoft could take a seat as a member of the board of directors or a voting seat without voting power. in these discussions form a broader part of backers to reinstate altman. satya nadella has been assisting the interim ceo in these discussions over his return according to these people. if sam altman is unable to return to openai, microsoft will consider in investing in altman's new venture. nigella -- nadella will be

unlikely to join the board himself. this as we hear efforts by a group of executives and investors to reinstate sam altman to his will as ceo reached an impasse over the weekend. we continue to bring those latest developments as they come to us. taiwan's china friendly opposition in disarray talks for an alliance stumbling ahead of those january elections. javier milei wins argentina's presidency on a platform that in to shut down the central bank. this is bloomberg. ♪

shery: we continue to see the high-stakes drama happening at openai right now after its ceo sam altman was fired on friday. we are hearing information that microsoft is eyeing a seat on openai's revamped board to, but over the course of the weekend we kept hearing perhaps sam altman would be returning, but he wanted to see some governance changes if he was in fact reinstated as ceo of the company, and this is such a groundbreaking ai company. the maker of the popular chatgpt. haidi: synonymous with this entire phenomenon. you mentioned those changes that

we need to weapon what it comes to governance that would revolve -- involve the removal of existing board members. microsoft considering a role on the board if sam altman returns. in terms of the seat on the board of directors or as a board observer without voting power. bloomberg takes a closer look at this emerging story. joining us now is sarah frier. we are being riveted by the high drama of this weekend, and things are continuing to move very thing. >> it has been such a whirlwind. we have never seen anything like this, and really was so shocking to us at what we explore in the big take is the idea that this is a leader who was in charge of a company that was succeeding, a vast customer list to come of

investments and running a very expensive business. this ai query business involves data centers and computer power. every time someone uses chatgpt, so it was a very strange move to move someone that popular, but you have to understand and you will read and understand it if you do that this was a philosophical move. this board was controlled by folks who were concerned about ai's impact on humanity, potential doomsday scenarios, and they wanted to stop it before it was too late, and honestly based on what i just noted there, i think this company was all ready so

intertwined with fortune 500, investors with microsoft, that it was not something that moving sam altman could really fix. shery: it was supposed to of started as a nonprofit organization, so what does it mean if we in fact see microsoft playing a role on the board as well? we know such a nigella -- santa ana della -- satya nadella has been at the center of these negotiations. >> all of microsoft was totally unaware of these discussions. you would think a company that owns 49% of your commercial organization would at least get a say in whether you are going to remove the ceo. they were not warned, so that is something that they were livid about according to our story and the ceo has said he would back

sam altman returning to openai or whatever he chooses to do next. they have a good alliance. anna boko at the same time we know the narratives of the founder of being exiled from the company they founded and eventually returning in triumph is part of silicon valley law. can you see similarities between what happened with jack dorsey and twitter, apple and steve jobs, and what does that set us up in terms of what sam altman's next act could be. microsoft is considering investing in his next venture. >> either way, sam altman comes away with the money to do something else, whether it is returning to openai or any of the other ventures he has on the mind. the thing that is so shocking about this turn of events is the

speed. this is happening over the course of the weekend, and openai's board is deliberating right now and figure out with the makeup of the new board will be and what happens next. we have not heard if the talks will result in sam altman returning or not. we will keep you posted. we are in touch with our sources, but i think this is a shockingly quick turn of events. jack dorsey was gone from twitter for a matter of years, as was steve jobs from apple oma and this is just a few days. shery: sarah frier there with the high drama at openai, and we can read more what is happening through your edition of daybreak . bloomberg subscribers go to dayb, also available on mobile in the bloomberg app. customize your settings so you

only get the news of the assets and industries that you care about. this is bloomberg. ♪

shery: libertarian outsider javier milei is expected to become argentina's next president after winning sunday's enough against economy minister nasa -- massa. he conceded and called javier milei to congratulate him on his victory. patrick gillespie joins us now. we already had a zell's lula extending an olive branch given that he had backed his rival. tell us about this historic election. >> this is an inflection point

in argentine politics and history, not just for the next four years, but what this means for the loser here, a political movement represented by the economy minister, they lost by 12 percentage points. javier milei won nearly 56% of votes overall. the political movement as governed argentina for much of the past two decades, much of the past 70 years, so this is a shift in the political arena for argentina, and ahead comes a lot of questions about javier milei's radical policies such as dollarization, closing the central bank, and you mentioned lula, javier milei as talked about not having diplomatic ties with brazil or china, so the foreign policy and economic policy face big questions in the days ahead. haidi: this has been branded

stock therapy policy. how much uncertainty is therefore the economy and the markets if he makes good on a lot of his policy and platform promises? >> there is extreme uncertainty in argentina because of what the risk of hyperinflation is. it is a high reward-a high risk bet where if it works you can thwart inflation already over 140%, the largest since it was exiting hyperinflation, but argentina could adversely go back into hyperinflation because it would require a significant currency devaluation. we were expecting that there would be some sort of pace of devaluation in the coming weeks, but people expect if javier milei follow through on his promise to dollarized argentina 's economy it would require a much greater patient evaluation and much greater magnitude.

we do not know who his economic team is, the technical steps forward. closing the central bank or dove arising the economy or all of the for schools -- fiscal cuts of promised he would do. the bonds could be reacting late tonight and early tomorrow morning. tomorrow is a national holiday in argentina, so we will not see the peso move until tuesday, but markets will be on edge as there is so much uncertainty about javier milei's radical economic policies to fix argentina's many problems. haidi: we are hearing javier milei it speak about 10 or 15 minutes. speaking of medical uncertainty or unknowns, and alliance of opposition forces into one appeared to be unraveling just days after it was formed. they have been unable to agree on the joint candidate after announcing a deal last week.

sam ellis is with us. what happens from here? >> that is what we are all asking in taipei. although we do know is that the parties have until friday to decide who their presidential candidate is going to be. that is the deadline for registering. last week, this all started last week when the two opposition parties decided to form an alliance that would have given them a much better chance of winning in january's election. the ruling democratic progressive party and led quite comfortably in the polls and looked like it was heading for a third straight german power, so the opposition parties got together and decided they were not going to go through the selection and allow the ruling party to have such an easy victory so that they would form

an alliance with the selection and form a unity government. the one big decision is which of their two candidates should lead this campaign, and then we are going to base that decision on opinion polls. we were scheduled to get the decision on saturday, but what we got instead was a big argument over which polls to include and over the margin of error, so these talks effectively done over the weekend. yesterday we got one of the candidates at a campaign rally promising to stay in the campaign and run for president for his party until the very end , thus raising further questions about whether or not this alliance can be saved. a lot of this will undoubtedly be negotiating tactics, so these talks are probably not off, but for now no more talks between the parties have been scheduled, so we are looking at the friday deadline for now. shery: samson ellis with the

latest on taiwan elections, and take a look at how the nikkei is trading at the moment. it just exceeded its june intraday peak at 33 year high. 33792 hit on june 19, and with the ongoing gains of about .62 of 1%, at the highest level since 1990. the financials, communication services, and energy stocks leading the gains, although materials are down a little bit as the japanese yen is weakening against the u.s. dollar at the 149.91 level. we have more to come on "bloomberg daybreak: asia." this is bloomberg. ♪ i don't want you to move. i'm gonna miss you so much. you realize we'll have internet waiting for us at the new place, right? oh, we know. we just like making a scene. transferring your services has never been easier.

get connected on the day of your move with the xfinity app. can i sleep over at your new place? can katie sleep over tonight? sure, honey! this generation is so dramatic! move with the xfinity 10g network. hi, i'm jason and i've lost 202 pounds on golo. so the first time i ever seen a golo advertisement, i said, "yeah, whatever. there's no way this works like this." and threw it to the side. a couple weeks later, i seen it again after getting not so pleasant news from my physician. i was 424 pounds, and my doctor was recommending weight loss surgery. to avoid the surgery, i had to make a change. so i decided to go with golo and it's changed my life. when i first started golo and taking release, my cravings, they went away. and i was so surprised. you feel that your body is working and functioning the way it should be and you feel energized. golo has improved my life in so many ways. i'm able to stand and actually make dinner.

i'm able to clean my house. i'm able to do just simple tasks that a lot of people call simple, but when you're extremely heavy they're not so simple. golo is real and when you take release and follow the plan, it works.

♪ >> chinese banks are key thing rates unchanged when the rates are released next hour. cutting mortgage rates may not be the best support measure to the housing crisis. our next guest is expecting low primaries but sees easing by 2024. joining us is becky, head of strategy at center china vanke. going into next year more of an accelerated pace both monetary and fiscal.

what will be the most effective way to put a floor under the property market and rebuild confidence for lending? becky: supports are needed so from the macro level fiscal policy will be more effective than monetary policy. monetary policy will need to stay easy to support the smooth execution of fiscal policy. so the sector is facing liquidity stress and there is no easy way to boost sales given prices not correcting at this stage. what can be done is to support the liquidity situation by extending more credit. we have seen it last friday and in addition to that we expect more construction activities

will be supported by the government's special bond issuance and this will be an ongoing process to support real estate. haidi: do you expect the property market problem to be a drag for not just months, years? is this exacerbated by structural issues? becky: indeed. we are not looking for a turnaround. it has been and still is currently the biggest threat to the chinese economy and it will continue to be the biggest drag in the coming year. structurally we have seen the demographic change change as wes the complete change of mentality and the business model of real estate developers, which we do not feel it would be a straightforward way of fixing this. what is more important is that the real estate sector is no

longer the primary growth driver when china u.s. will continue to engage in a number of competitions in the tech sector and other sectors. we feel that there will be more measures to defuse tension. the purpose is to reduce risk. haidi: on the fiscal side we've seen that take the form of infrastructure. what do you think would be effective on the house bond side given the high correlation to confidence. should there be direct payments if we fail to see more improvements? becky: direct payment is relatively remote when it comes to the policy reaction by the chinese authorities. what could be done is to leverage up a central government

balance sheet in order to provide support to domestic investment and demand. we have already seen the first step of this incremental one trillion of issuance by this year and we should be expecting a wide fiscal deficit and higher allocation of fiscal deficits to be allocated to the central government. compared with the local government, central government is lightly leveraged and at the same time we feel that this is one of the easiest policy options in the hands of the chinese authorities to boost demand and investment. that will cast into the housing sector. haidi: when you look at the broader picture of the chinese economy how much of the slowdown is down to structural demographic factors and how does

that inform policy? there is a limited arsenal of ways you can contend with a multi year slowdown. if this is the new normal. becky: demographic does play a role but this growth momentum has more to do with the policy function regarding how covid was being handled. following a few years of zero covid policies the household was too weak read if you have such a weak balance sheet coupled with other policies, the real estate sector and other sectors that lead to a weaker job market and together it is leading to the slowdown. we feel that china growth and

policy adjustments could be leading to alleviation of pressure and a rebound a few quarters down the road. we still see china's overall growth will stay on trend because of the real estate sector. no other sector is able to offset the losses in the receivable future. haidi: i know you mentioned the u.s. china rivalry. after the leadership talks do you have more optimism that might not be a major distraction from having to manage the domestic economy? becky: you're getting more optimistic with the stabilization between the u.s. and china, it will last longer than expected because there will be mutual need to stabilize the relationship based on the things we're are seeing today.

domestically there will only be one element that supports a turnaround of domestic confidence but if we look at the indicators credit growth is decelerating so these are not positive leading indicators and by having headlines stabilization of geopolitical tension more needs to be done through the fiscal side and we see that happening in 2024. haidi: great to have you with us, becky lou, head of macro strategy. shery: for a preview of the market opens charlotte yang joins us now. we just are coming off of the worst week for the csi 300 despite the fact that we were

more cautiously optimistic about geopolitical tensions between the u.s. and china given the meetings. what will investors be watching out for this week? >> what we got from last week is geopolitics are stabilizing and the u.s. and china are receiving communications. the focus shifted to china property. investors react to the latest supportive stance to regulators to support what they call reasonable funding needs to chinese developers. issuing credit and equity financing, that will be supportive to the property markets. there are individual stocks

today joining the hang seng index which will see some moves as well. policy clarity and china property is the thing going forward. what we seen with the earnings season is earnings revisions have not ended. so it will be one or two quarters so property is a key focus now. haidi: what about the outlook when it comes to china tech? there was some optimism to be seen. >> from earnings what you said, some are encouraging particularly with tencent and the gaming revenue improving. the thing that took people by surprise is the headlines with alibaba, the cancellation of the

cloud, that came as a reminder to investors that in a lot of things could come by surprise on the downside. it's not just about earnings, it is also about bigger headlines, like what happened with china and u.s. geopolitics and restrictions. it's not just about the rebalancing and that triggers an impact. haidi: charlotte yang there. speaking of chinese tech looking at baidu reporting their earnings. bloomberg's rachel joins us now. how are expectation setting up ahead of this? rachel: they will report earnings today and we expect quarter three sales to remain flat. and you may see smartphone

revenue due to setting prices but that might be offset by growth in other sectors. internet and lifestyle products might be slightly up. shery: we have the likes of china and cathay pacific. what are we likely to see with the macro prices being reflected in these earnings? rachel: china will face debt and deflation next year so that might impact its recovery in terms of the chinese equity side, yeah. but we are seeing more positive growth as they hire more people in the future and we might also see more passenger revenue. shery: bloomberg's rachel there

with the latest on what to expect from earnings out of china as we are watching markets trading across asia. big gains for japanese equities and were talking about the nikkei touching the highest level since june which puts us at the highest level since 1990 and that peak was around 33,772 hit on june 19 and we are now past that level. if we close to these levels we will be at the highest in 33 years. the kospi is gaining half a percent and asx 200 is up. this as we are watching energy prices rebound in the previous session. holding on gains and the wti and brent is around 80. energy is one of those sectors

that is gaining ground in the japanese market at the moment and we continue to watch the japanese yen which is weakening against the u.s. dollar but still at the 149 level so we have not surpassed one. we are following the korean you one because we are seeing pressure after the previous three sessions. we have seen risk appetite improve given market expectations and perhaps the u.s. federal reserve is done in the hiking cycle. coming up, the u.s. as a hostage deal with hamas may be at its closest yet. an update on the conflict in the middle east. this is bloomberg. ♪

♪ haidi: the u.s. says a deal for hamas to release hostages taken during the october 7 attack on israel may be at its closest yet. qatar sees progress being made. where are we in terms of getting closer? michael: the u.s. says this is as close as they've been since the start of a conflict so there is movement. behind the scenes it is not

expected to be today and the idea is that there will be a multi-day pause to remove hostages out of gaza and palestinians in turn want women and children released in israel prisons. but hamas' head was looking for israel to stop aerial surveillance. not sure that is going to fly but all the pieces are coming together and there is optimism. it is progress, definitely. shery: last week israel received international criticism for rating a hospital and now they are releasing the video that shows a tunnel beneath it. what is the latest? >> it is nearby and it has blast

doors. israel has got bits and pieces of evidence and it had video of some hostages taken into the area and the amount of tunnels under gaza weather directly linked to the hospital, there was a degree of use of that facility for hamas operations. there is talk about israel and a lot of civilians being shifted from the north of the gaza see where actions are taking place, there is concern about how that may fall out, the repercussions of that in the u.s. is morning israel it will have to be careful.

that pressure is likely to ramp up again as they moved to the south. shery: bloomberg's michael heath with the latest on the war in the middle east. watching oil prices and muted trading. traders are boosting bets that oak park -- opec will correct plunging oil prices. saudi arabia and russia have pledged to put curbs in place until the end of the year. let's bring in vonnie quinn. saw the rebound on friday, muted trading today but russia is exporting more. >> russia is exporting more but the question is what the numbers will be and cuts are in place through the end of the year. the question for opec in austria is do they extend cuts further into next year?

it's not just russia, it saudi arabia, the largest countries that are producing oil. oil has been down for the last four weeks. the risk premium in oil has faded away and opec-plus is not happy with oil prices lower. on friday we saw goldman sachs with a note that analysts believe opec-plus will want brent trading between 80 and $100 a barrel through 2024. that would ensure a modest deficit and leverage price power. that is what goldman is expecting opec-plus to decide upon. jp morgan saying opec-plus could unveil surprise cuts to keep the market balanced. ft is reporting one million barrels a day could be on the table, 1% of output globally. that is quite the amount.

the other narrative is middle eastern countries are not happy with the israel hamas were and whether that would be the main reason or an additional piece of the reason there could be some reason for them to decide to sort of punish some of the world's oil consumers by upping the price in order to just punish them that way. the white house chief energy advisor is confident that arab countries will not weaponize energy but he has to say that. supplies have been high in recent weeks, we've seen inventory data from the u.s. showing strong growth from the u.s.. brazil is experiencing strong production growth so there's plenty of oil and maybe that's more reason for opec-plus to continue cuts. the countdown has begun. haidi: once the demand outlook?

vonnie: it is not strong, not strong enough to push prices higher at the levels we are apt, so we know china's economy is cloudy. we're not quite sure what's going on with the recovery, you don't know. we talked about it with our most recent guest. cloudy outlook and a little bit of a cloudy outlook in the united states. the united states may start to slow. we don't know what the federal reserve is finished with its rate hike cycle and if they will cut rates. there is uncertainty at the moment impacting demand. not seeing strong demand. el niño has not produced major weather events but there has been a severe spike in oil contribute into bullish bets. hedge funds have reduced bets to the least they have been in five

months which is saying something. it is not helping companies as oil prices declined on the year. baker hughes is up but halliburton is down even though the s&p 500 is up. shery: vonnie quinn with the latest on oil. close to bear market territory down almost 20%. this is bloomberg. ♪

♪ haidi: top corporate stories we are tracking this hour, bloomberg learned citigroup will start job cuts a soon as monday as part of the first wave of the ceos overhaul. it is unknown how many people will be affected. citigroup cuts 7000 positions. musk has dismissed reports of antisemitism and said they could not be further from the truth.

they claim to jewish people held a hatred of white people and it came as advertisers hold did spending on x. bill offended elon musk saying that while he was not perfect the world is in a better place because of him. shery: taking a look at stocks we are watching in hong kong and mainland china. it big day for chinese earnings. air china is in focus after resuming flights to washington and increasing services to los angeles this month rate china evergrande bank, its chairman has resigned from his position. still to come, why markets could see that rate -- fed rate cuts coming sooner than later.

bloomberg markets china open is next. this is bloomberg. ♪

you want to be able to provide your child with the tools or resources they need. with reliable internet at home, through the internet essentials program, the world opened up. fellas, fellas. that's how my son was able to find the hidden genius project. we wanted to give y'all the necessary skills to compete with the future. kevin's now part of this next generation of young people who feel they can thrive. ♪ ♪