>> you are watching "daybreak: asia." haidi: a still you has just come online. most openai staff promise to follow altman to microsoft and less the board resigns. asian stocks set to open higher after gains on wall street and solid support for a 20 year treasuries option. plus, easier financing coming for easy -- for dozens of chinese developers. shery: look at u.s. futures coming online in the asian session. not a lot of movement but this after stocks rallied in the new york session. the s&p 500 closed at the highest level since august. tech led the gains. the nasdaq 100 at the highest level since january 2022.

we are talking about a 22 month high. treasuries ended the session a little mixed. along in reversing course and rebounding after $16 billion sale of 20 year treasuries showing solid demand. 10-year down 4.4%, but it was next. the two-year slightly higher at the 4.91 level. before the auction traders were warning we would see poor sales. it's a holiday week in the u.s. and that could dampen the momentum we had seen from the recent rally in government bonds. we saw traders and investors rushing into u.s. government debt, thinking the fed might perhaps be done raising rates and perhaps the likelihood of a shift to cutting them by the middle of next year has been priced into the market. traders have been fixated on treasury sales to see how much

more pressure could apply to the broader treasury space. all and all, we have seen markets reacted to the earnings picture as well. we are talking about over 90% of s&p 500 firms have reported results for the third quarter, earnings up about 4% year-over-year. that in's the s&p 500 profit recession. the dollar continued to weaken in today's session, falling to an 11 week low, the lowest level since august, and extending the drop last week. this is long in treasury yields that continue to fall. we were watching openai and microsoft, which closed at a record high. the drama over this continues. emily chang has more. emily: i want to welcome our audiences as well as the

microsoft ceo who joins us live. obviously it has been a fast-moving and dramatic 72 hours. where are we now? openai says they have hired a new ceo, there are efforts to get sam altman back. satya: it's great to be with you. friday morning, we were very excited, committed and confident in our innovation roadmap to bring the next generation of ai to customers and we feel fantastic and capable of doing that and we were partnered with ai and sam and that's where i am on monday afternoon. we think we are leading in the next generation of ai technology. we continue to be committed to openai and sam and greg and the team. i think sam has chosen multiple

times now to work with us and that is fantastic to see. i think the capability microsoft has across tech is what attracts great people like sam when it comes to ai to come to us and we are thrilled about it. emily: you incredibly quickly hired sam as well as greg. we are hearing sam wants to return. investors want him to return to openai. how would you feel about that? satya: as i said, we want to partner with openai and sam. irrespective of where sam is, he is working with microsoft. that's the case on friday and today. we really -- that will be the case tomorrow. emily: what are the conversations you've had with the current openai board? from their perspective, where do

things stand and how do you talk with the new interim ceo? satya: i've had conversations with emmett and there's no real difference from where we were when we were working with mira as interim ceo, and sam was ceo. we remain very committed to openai and they can count on us. as i said, we are also committed to sam and greg and the team that wants to join us. anyone else at openai if they want to go somewhere else, we want them to come with -- come to microsoft. emily: to your knowledge, why was sam fired and was he involved in any wrongdoing? has the board given you a reason? satya: as far as i am concerned, as i said, we were very confident in sam and his

leadership team. i've not been told about anything. the board has not talked about anything sam did other than some breakdown in communications. i was not told about any issues good that's why i remain confident about sam and his leadership capability. that's why we want to welcome him to microsoft. emily: we understand that microsoft wants some changes to the board, governance and contract with openai so something like this never happens again. what specifically are you looking for? would you want a board seat, and if not, what else? satya: we definitely want some governance changes. surprises are bad and we want to make sure things are done in a way that will allow us to continue to partner well and that is about it. this idea that suddenly changes

happen without being in the loop is not good. we will definitely ensure that some of the changes needed will happen and we continue to be able to go along on the partnership with openai. emily: how are you envisioning this role with the advanced ai team that sam and greg would be joining and leading? can you explain that? and are they microsoft employees right now? who do they work for? satya: they are in the process of joining, and yes. we have a ton of ai expertise in this company. at our conference last week, we talked about all of the work ai -- openai is doing, and azure and all of the tools around it, and we also talked about open source on azure. in fact, not only are we leaders

in nlm's in partnership with openai, but small language models. one i'm excited about is a team that will have high ambition on leading ai work that sam and greg are excited about. we've talked about it a lot with them. what do we do to advance the system side? that's the thing we will be pushing on. emily: many folks i'm speaking with don't see sam as a big tech company guy. he has all of these side projects that we've already heard about. we've reported on new projects. would he be able to pursue these side projects while being employed by microsoft? satya: yeah, i am sure. sam has broad interests and investments. i am sure we will work through

the governance aspects of it. most importantly, he would only want to work at microsoft if he wants to spend his full-time working on this. that was what was behind having him lead this advanced research team on ai, with others like greg. emily: i am curious your reaction to the last three days of events. are you more concerned than ever about ai safety given we have seen clearly how fragile these institutions are? satya: it's a great point. the thing i think, in some sense, i've always felt we should think about the unintended consequences of any great advances in technology from day one, verses dealing with them later. so i welcome this dialogue if you will of safety, and safety

first even, in technology and technological development. in some sense it should be celebrated that we as a tech industry have gotten to a place where we don't think of this as a trade-off but as considerations that are both first-class. one, how we build technology that everybody in the world can have a doctor can reach or a tutor, or a rural farmer in india has more agency because of technology developed a few months earlier? these are unbelievable things that democratize access on one side. on the others come up being grounded on the here and now harms, whether it is election interference, deepfakes, bioterrorism, and having guardrails against it. or some of the existential risks and alignment research required. i think there is a robust dialogue happening. when i think about microsoft, we have done some of the most work

around the ai alignment, ai safety, guardrails. even the open source models we launched last week all benefit from the guard rail we did around openai models. emily: throughout the reporting process we have heard concerns about potential regulatory issues and the power that microsoft has in ai. have you worked through all of the legal issues at play? i just spoke to one investor who said they are considering suing openai. there are a lot of things that it seems have yet to be figured out. do you know what microsoft legal liability is and openai's legal liability is, given your significant investment? satya: i am most focused on and most excited about our ability to continue to innovate. i will let the lawyers figure

out what liabilities are. i think we have all the capability, all the ip and all of the things we need in order to continue to essentially control our destiny so we can continue to innovate on behalf of our customers. that's what matters and makes microsoft microsoft. we will continue to do what we need to do. emily: quick last question. who will be ceo of openai tomorrow? satya: i will leave it to openai and its board. emily: thank you, i know you've had a busy few days and i appreciate you taking the time to talk to us. guys, back to you. haidi: emily chang speaking with satya nadella, asking questions that everyone watching this openai drama wanting to know. we will bring you the latest as the story develops. still ahead, we will be speaking with piedmont on the outlook when it comes to the ev

manufacturing sector and production as well as supply of these critical minerals. first, we talk investment strategy amid the fallout from the openai turmoil. this is bloomberg. ♪

annabelle: a check on markets, just about 15 minutes into the session for australian stocks, the asx 200 a little higher as we get online. materials leading, energy, consumer discretionary. the things playing into that, firstly you had another day of gains on wall street that came through, a weaker dollar helps things like the aussie.

also the move around energy in particular we are tracking. trading volumes are very thin and lower than the 20 day moving average, so far what we are seeing for the australian session. perhaps drifting a little sideways, very range bound as we head through the session. let's look at the futures space as well. given that broadly we are tracking for games around the region. chinese, nikkei futures pointing to the upside. kiwi stocks flat at this point. the dollar story is playing into the japanese yen, below the 150 mark. u.s. futures fairly flat. the stand out on wall street was the tech space in particular. shery: the nasdaq 100 touched the 22 month high and microsoft reaching a record high, we just heard from satya nadella, who told us that some altman and greg brockman -- sam allman and greg brockman are in the process

of joining microsoft. we welcome our guest. given the ongoing drama, what do you make of microsoft now? sylvia: great to be with you. my view of microsoft doesn't really change, i think the drama will make for the next great netflix documentary or something we will watch one day. it will be interesting to see how it unfolds. i don't think there is a loss for microsoft. either way they get tech, innovation, leadership in ai, whether it is chatgpt or now having this edge in-house of arguably some of the brightest minds in ai on their side of the fence. don't think this impacts the company and if anything, the commitment to ai and kind of the drama and the need to grab

talent remains. continue to like the stock for that reason. also leadership in the cloud in terms of growth. amazon cloud grew 12%, they grew double that. software and personal devices are growing. all sorts of areas where microsoft is getting tailwinds for the first time since covid. shery: nvidia has always been one of your top picks, we have results on tuesday. what are you expecting for the stock and its peers in ai? sylvia: nvidia is one to watch. there's been so much hype about this stock, i love this name, i think it is the running water of artificial intelligence. everything that goes into that, whether it is supercomputing, quantum computing. any innovation that has to do with robotics, digital thinking,

driverless cars, smart city, it will rely on chips. they have $1 trillion of a data center that has to be upgraded and they own space. tomorrow will be interesting because the market expects a phenomenal beat. we've gotten from the ceo, it will just remain to be seen whether they stretched the goals and the current outlook for the stock. i think either way nvidia ends up being a leader in technology so i continue to love that stock. shery: more broadly what you make of this earnings season? sylvia: all in all, it has been a pretty good earnings season. overwhelmingly, companies have earnings on the higher side. the last three or four earnings seasons we've been talking about how disappointing they would be,

and how poor the outlook was good here they are puttering along and now the fed may pause and potentially cut year. tailwinds, seasonality, i think the market is poised to rally year end and earnings not that offkilter but i think we are good to go for the next month or two. unforeseeable circumstances aside. shery: of course. we have some retailers this week, best buy and nordstrom. what are you expecting from discretionary just -- discretionary spending and the u.s. consumer? sylvia: we've had some good indicators of that already. if you think about the story, every thing is locked up, people can't get to it, completely

discretionary, fears of recession and yet target -- consumer wages have been increasing along and the price of oil coming down and the psychological ease about the fact that the 10 year is down and perhaps mortgages come down a little bit, it feels less of a strangle financially for the average consumer. this will also be a good quarter and we will see what happens in q1 next year but this is also about spending time and i think it got extended a little bit. i think it will be good for these companies. shery: are you doing anything special for thanksgiving? we are expecting holiday travel to take off. how will that affect your portfolio? sylvia: absolutely. 55 million people and i will be traveling this week for thanksgiving.

my million dollar plane ticket to fly a couple hours away. it is locked in. again, the consumer spending has remained strong, the consumer continues to spend on things like experiences, whether it is a taylor swift concert, travel, cruises. we've seen a pickup. what would throw that off, geopolitical risk and the price of oil and inflation. it's interesting because the demand story is very much therefore the airlines, all of the ceos talked about that, they talked about price pressures moving forward but that is alleviated yet ticket prices are still high. i think airlines will rally toward year-end. shery: i am staying put, i'm not going through that crazy holiday travel. happy thanksgiving to you. sylvia: happy thanksgiving. shery: we have more to come on "daybreak: asia."

this is bloomberg. ♪ onary embolism happened. but because i have 23andme, i was aware of that gene. that saved my life.

haidi: help on the wafer china's property sector. -- on the way for china's property sector. stephen engle joins us now. something needs to be done, right? is this a stopgap measure? stephen: it's part of the incremental approach authorities have taken to combating and putting a floor on the property woes in china. they've helped homebuyers as far as relief. they've not done the big bailout of the big developers who have defaulted but they are starting to show some support for these developers. select developers. china's biggest banks, distrust asset managers and the like on friday were called in with the

meeting with financial regulators in china, essentially told they should meet all reasonable funding needs of these particular developers. there is a lot of indebted and troubled developers. will they all be treated the same? the latest development we are hearing is there is a so-called white list drafted by regulators that includes both private and state owned developers and on friday that was the marching orders given to the financial institutions. treat state owned developers and private developers the same when it comes to lending. the white list apparently has about 50 developers on the list, including season, and others. it is intended to guide financial institutions as they weigh support and what kind of support for the industry via bank loans, debt and industry financing.

it is a roadmap, following up on the meeting on friday between the banks, financial institutions, bad debt and the like with financial regulators could another incremental step. china has avoided the big bazooka bailouts and is trying to put a floor and store confidence piece by piece. haidi: our chief north asia correspondent with the latest, as he said, an incremental set of measures to support property and economic growth in china. coming up, citigroup/is hundreds of senior managerial roles. we get the latest. this is bloomberg. 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.

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shery: welcome back.

citigroup has confirmed a fresh round of job cuts as part of the ceos a sweeping restructuring. sources tell us hundreds of senior manager roles will go several top traders also departing. su keenan has been following this. what have we heard? su: according to sources it is more than 300 and at high levels. we reported in september that ceos -- the ceo kicked off a major restructuring, effort taking out two core units of the firm. now we are told by people close to the matter, senior managers to levels below the ceos level are impacted and the cuts are roughly 10% of workers at that level. this is all part of a revamp at citi that is the biggest into decades. the bank has said the cuts may continue around the globe into next year. the bank issued a statement saying these moves are designed

to align our structure and strategy. it's part of the goal to boost profit that the ceo has repeatedly stated. she is seeking to streamline management and has already eliminated some structures to speed up decision-making across the bank. the stock was marginally up and then down, almost flat on the day. it should be noted that the stock is up some 9% since september when these restructuring measures were first announced. also city cut 7000 positions ahead of the announcement of the restructuring earlier this year. haidi: could there be more to come into 2024? su: all indications is this will continue and the bank has said it is likely and observers have said it could be in the thousands. the cuts have involved significant consequential

decisions. the bank said not only two core units were scrapped, but three regional chiefs that handled staff in hundreds of countries. the current layer hits senior management and also top traders. we are reporting the head of emerging-market trading and equity trading for europe have been impacted. that's according to people close to the matter. when you consider the next layer as they've been calling each phase of restructuring, goes below that level, it could be thousands of lower-level folks. when you look at the fact that frazier is the only ceo of the major banks on wall street, there's a lot of spotlight on this. she has vowed to be dispassionate about making tough decisions and so far the market and investors have indicated she has their support.

haidi: su keenan with the latest. mcdonald's will buy back carlisle's majority stake in a partnership that runs the restaurant business in greater china. the stink will increase to 48% from 20%. the chinese conglomerate will continue to hold 52% of the business. xiaomi has posted its first revenue gains in was two years. it beat estimates of $9.8 billion. the company says it is hopeful global shipments will jump during the holiday quarter after a recent launch of a new phone. annex ceo has acknowledged a pause -- x's ceo has acknowledged a pause by some advertisers. she acknowledges what she calls

and manipulating report. it said that big brands were being placed in your offensive content. a software maker has slashed jobs, citing employee performance and the need to cut costs good sources tell bloomberg staff were fired across departments. it's unknown how many people were affected. in a statement, the company says it regularly manages low performance employees and has over 100 open positions. let's stay with broader tech, interesting development regarding small and midsized innovations in china. annabelle: this is quite a good chart, looking at the beijing stock exchange 50 index for it tracks those small and medium-sized tech startups. they are listed in the capital of china. it's important to look at the lows we've seen, yesterday was a gain of more than 3% of the

index, quietly entering a bull market. you've got the china come up around 6% since october, quite a big beat to what we are seeing from its peer. one of the reasons it's been cited is this index allows 30% trading limit in either direction, you compare that to 20% for the star 50 and china as well. certainly an interesting phenomenon and a bright spot in what has otherwise been a dreary market for mainland chinese stocks over this year. let's look at what we are seeing in equities broadly in this session because we are half an hour into the trading day for the asx 200. you can see we are a little higher but broadly, is just a very flat session, expecting the trading volumes. not too much to shift at the needle at this point. you got the tech sector, that is

generally what we are looking to at this point. shery: more to come on "daybreak: asia," following the green energy transition. this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh if your business needs a new application then developers will have to write code. a lot of code. if an application needs to be modernized then you'll need time, resources...

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shery: we are a little over a week away from the cop 28 conference, and at the heart of the electric -- the green transition is electric vehicles. rental fleets are still mostly internal combustion engines. how have a big rental companies fared so far on electrification? my first question was, how are big rental companies doing when it comes to electrification? >> thank you for the question. the industry today has about six point 4 million vehicles and only 3.3% are vehicles with a plug. the electrification progress is

it different for the majors. very active players such as hurts has turned 11% of a fleet into electric vehicles and plans to add more from auto maker partners. we also have others from chinese automakers. we have enterprise, another big rental company, which is more cautious and only registered the ev share of its fleet less than 1%. haidi: what are the challenges for car rental companies when it comes to picking up ev's? >> there are a couple of barriers to conquer. reliability and the ev model availability based on consumer preferences. i want to highlight, and markets

such as the u.s., car rental companies purchase vehicles from automakers without a guaranteed depreciation program, which means when they sell the rental cars at auction or the used car market, they are exposed to the sale price, and it could impact revenue and their ev adoption strategy. if we look at the ev residual values today and in 20, we can see an 18% to 30% drop. behind such tech line is the way tesla made used vehicles less attractive. this is one of the reasons why we see hurts announced to slow down its ev adoption on its earnings call. shery: when it comes to the broader picture on the global adoption rate, how are these

car-rental companies that are electrifying impacting that? >> the current industry will have an impact in terms of global ev. first, the way they frequently buy and sell. in the u.s., around 13% or 2 million new passenger vehicles were sold into the industry last year. there are more positive impacts than just sales. in the private ev segment, rental ev's are usually the first experience of consumers with ev's so they can educate consumers on how to use and maintain ev's good and the ride-hailing sector, ev's are provided to companies like uber and help them achieve net zero targets. car-rental companies can also help set up a strong used ev

market that could make ev's more affordable for a wider group of consumers and this is good news for the global transition. lastly, there is an esd angle. car-rental companies are multi-rated to offer electric vehicles to corporate's which usually make around early percent of their revenue. corporate's are demanding ev's because they want to reduce emissions bid this helped corporate to improve esg credentials. haidi: piedmont lithium is a producer and supplier of a critical ev battery mineral. the ceo joins us now. give us your view as to how the demand outlook is shaping up given that we continue to see resilient demand for ev's, but

on the supply side perhaps less resilience. keith: thank you for having me. we've seen lithium trade on all-time highs there is a perspective that ev demand must be failing and nothing could be further from the truth. ev demand globally is about 30% of this year, i think most industries would be happy with that growth. there's been an industry correction particularly in china with lithium in the supply chain. i think we are approaching a bottom and i am personally optimistic. i think we are in the second or third inning to use a baseball analogy, in the ev transition, and i think lithium prices will strengthen for the next decade or so. haidi: when it comes to inventory d stocking through the

supply chain, do you think we are through most of it or is there more to come? heath: -- keith: i think we are mostly through it. prices fell precipitously for several weeks, even months over the course of this year and our impression from our conversations with customers, and we are shipping as we speak, we had a shipment leave yesterday, our sense is the pricing is stabilizing. which is good. haidi: when you look at the pipeline for projects and ventures, what are you excited about and focusing on? keith: i will take that on a macro basis first of all. there are a lot of lithium projects in the pipeline. obviously prices have gone up and demand is growing dramatically so a lot of companies have gotten into the lithium business.

i think most of those projects will never see the light of day. the number of high-quality products, big, world-class, is relatively modest. those projects will generally take eight to 10 years to come online. i think it will take a while to come online. we are producing, we have the only producing mine, in north america currently. we have an exciting project in africa with another australian partner that should come online in 2025, and we have our own lithium project that we hope to have fully permitted next year. there we have a downstream plant we will build in tennessee. we have projects we are excited about. they all intend to produce lithium hydroxide for the u.s. the market, where there is a tremendous demand. haidi: how you view china?

the market and the plans as part of the broader picture. keith: the chinese market has been driving everything. the ev business got kicked off by tesla but china is by far the biggest ev market, 80% plus of lithium hydroxide is produced in china, mostly from raw material from australia. really their strength is on the downstream conversion side. they've been very good at it and aggressive. i think the reality is now customers in the western world very much want suppliers for all kinds of reasons. we've had conversations with people well before covid or trade issues, just about the desire to have local supply. with all of the plants being built in the u.s. and the inflation reduction act, etc., there is a great demand by customers over here to have local supplies. there are very few people pursuing it over here so we are

in a unique position. we are one of three american news in the lithium is this of significance and we see a huge market opportunity. i think the chinese will be a natural supplier because they are the biggest and not going away. but american customers in particular and i think western european customers really want western suppliers them and anyone who can fulfill that need will do well. haidi: in australia we've seen an interesting trend of billionaires making more and more investments. what do you make of this development and do you see this as a trend that might reshape the broader industry? keith: i think it's very exciting. i have watched it closely. lion town, wildcat, essential metals. t these arewo of the most --

these are two of the most successful mining ceos could there -- ceos. i am encouraged by the activity, i think there will continue to be consolidation around the world and we've seen recent announcements around a project in brazil, the project we are involved with in ghana. i think the smart money is betting on a strong future for lithium and i think that is encouraging. haidi: keith, great to have you. tune into bloomberg radio, you can hear more from the days newsmakers and get input and analysis from the team. you can listen in via the app or bloombergradio.com. this is bloomberg. ♪

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shery: the rise in global interest rates putting a damper on the property boom and for some, diminishing hopes of a pathway to homeownership. for more, our personal-finance editor joins us. we are seeing different effects when it comes to global property

markets. what are they? ainsley: you are right, around the world we are seeing a range of different effects. in the u.s., 30 year mortgages dominate in the market is essentially frozen. people who managed to lock in low rates, it is great for them, but people looking to buy now, the rates are very unattractive. the housing market is the most unaffordable it has been in four decades. people who managed to lock and low rates don't want to move. we are seeing very low inventory, keeping prices higher and making it harder for people to get property. in new zealand, a country that saw one of the biggest pandemic property booms, prices rising must 30% in 2021, interest rates have risen extremely quickly and quite high. it is having a big impact on people with mortgages. the hardest impact groups is people who took out mortgages

and 2021 during the property boom, they had to borrow a lot because prices were high and interest rates were located -- were low. they perhaps got a false sense of security. now for most people who borrowed then, interest rates have more than doubled. they are seeing a lot of financial hardship. the one saving grace in new zealand is the fact that employment has been really strong and wage growth has been strong, which means we haven't seen distressed sales but there is undoubtably a lot of financial stress. in countries like canada, amateur investors are big part of the market there, but we are starting to see them pullback. that's having an effect on construction, which means prices are saying higher. in the u.k., households also under a lot of stress, particularly landlords, which means it has a bad effect for

rent generally. in asian south korea, a huge amount of personal debt, particularly landlords. in hong kong, they are feeling the effect of a slow down in china as well as rising interest rates. haidi: are there winners in all of this? ainsley: yes. people who don't have a mortgage, they have more money to invest in higher yielding investments, so they are winners. and people who bought soon after the financial crisis will see a huge rise in equity on their properties. so they have a lot of money to invest. one of the things that is changing is the path to building personal wealth. in the past people have looked to owning property as the main way to do that, whereas now it is becoming increasingly difficult. not just for first-time buyers

but also people who want to build property portfolios. haidi: ainsley thompson there with today's big take. these of the stocks we will be watching when trade opens in korea and japan shortly. energy producers in focus. there are bets opec-plus will intervene in the markets. we are also watching chipmakers, the u.s. launching the $3 billion program to shore up its chip packaging industry. let's look trading in this part of the world. we are looking at gains expected as more markets join the fray, asian stocks expected to gain a little.

we will continue to watch the openai story. this is the picture when it comes to trading in sydney. the asx 200 up by about two tents upon percent. ready steady picture for trading in australia and new zealand. appetite for the 20 year treasuries auction, and the greenback is continuing to slide. 55.61 compared to the aussie dollar. a third day of rally for the yen. a lot of asian currencies more broadly are expected to extend gains in the session. we will hear from michelle bullock, underscoring, speaking at a panel in melbourne this morning, that inflation will be a crucial challenge for the next one to two years, and supply shocks are still possible. ♪ the pulmonary embolism happened. but because i have 23andme, i was aware of that gene. that saved my life.

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>> this is daybreak: asia counting down to asia's major market opens after a rally on wall street that sends the nasdaq to the highest level in 22 months. microsoft touched a record high as we continue to watch the saga around openai. >> we have a little bit more detail on that saga. when we spoke earlier to satya nadella, saying he remains open in terms of willingness to have altman rejoin openai. that is the state of play. >> really importantly he wants to see some sort of governance changes. this sort of situation cannot happen again. we have the open for japan, south korea as well, the start of trading at the beginning of the day, the focus is coming from tech stocks.

we saw the nasdaq the tokyo mothers index rising two .3% of the start of trade. that is where we are seeing some of the bigger or better numbers. the nikkei 225 fairly flat. you look at what is happening in the bond space, we are not seeing big directions. a little bit of dollar softness so you have the yen trading below the 150 mark. but just trading volumes, watch them. we can expect them to be fairly thin. there's not a lot to shift the consensus among traders at this point. the euphoria for instance around the fed hiking rates by mid next year is starting to fizzle out. let's take a look at what's happening in korea. we just had trade numbers drop the last couple minutes. we have seen daily average exports rising 2.2% for the first 20 days of november. we want to know the breakdowns we see for different categories,

chips of course very crucial to the chinese economy. we have seen those rising 2.4% on the year. good indicator because of course what we are tracking is the glut in the semiconductor space finally coming to an end. u.s. numbers, exports rising 15.7%. it is that question, the health of china's economy, is it starting to improve? the first 20 days of november we are seeing exports to china dropping 2.4% on the year. imports as well down 6.2%, that's the headline number four korea. it takes the trade deficit to $1.416 billion. that is the state of play for korean markets. the korean won trading below the key 1300 level. what is interesting is when you look at what's happening in the australian session this morning. we are seeing better numbers from materials. we have iron ore here, the singapore contract. above the 130 mark we are seeing

material stocks leading the gains so far. again it is lower trading volumes, so a lot of investors perhaps on the sidelines. >> let's turn to our next guest. he says he is no longer hesitant to get on the japan bandwagon but he is watching where the yen goes from here. karen calder is the head of equity research for asia at ubp and joins us now. you are now saying japan is your preferred non-us market. why the change now? kieran: good morning. we still prefer the u.s. globally. as the headline said we are less hesitant to get involved in japan. if you have come together. japan has done very well on a yen basis, but has not kept up with the u.s. or even euro stoxx 50 on a dollar basis. we think it has the potential to set up for a pretty long-term

story and the real test will come when the yen stops weakening. the remains -- there remains a strong relationship between the yen and the topix. earnings sensitivity is a reason but also market participant sensitivity to the currency. we have seen it test 150. the threat of intervention, the threat of the threat of intervention, is i think what is bringing it to where it is now. we think that is going to be the real test over the next six months. what happens to the yen on the back of that, what happens to the market. shery: is your thinking that even if we get a japanese yen, equities will remain resilient in japan or are you thinking the yen will not strengthen more from here? kieran: i think we have really -- there is a few fundamental factors that are positive for japan. the new focus on r.o.e. and the name and shame list of that's

going to start in january, that is one. we have the continued corporate governance reforms that are starting to take root, that is another. we think these have the potential to be strong long-term stories, like multi-year. the real test is going to be when the yen, if it strengthens or stops weakening this year. obviously japan is a big, deep market. there are a lot of areas that will benefit from the current numbers in the interest rate regime where you have the policy rate fixed at -10 basis points. they are slowly easing up on yield curve control, so the spread is widening and that is positive for banks. there are stories within what we call the waiting period where we see, what can the market do if the yen starts weakening? shery: you said the u.s. remains your preferred global equity market. why? >> we just think it has the best

stories, the best innovation. and has the strongest companies, the biggest focus on shareholder returns. on the back of all that, it has done best this year of any major global markets. we think that will continue. that is prefaced on we still expect a soft landing in the u.s.. the second half of next year we may start to see rate cuts but we definitely think rates are going to stay high, possibly even higher. until then. we find the best and the most innovation within the u.s. market. shery: we have seen the nasdaq 100 touch the highest level in 22 months in today's trading session. is there more room for upside here? kieran: we definitely think there is. there is a lot going on in tech.

we are looking to nvidia results tomorrow. pushing to a new high on the back of brand-new demand from sold out ai chips from nvidia. we think there is potential upside. we also have to pick the winners. shery: in the meantime, you announced you are going to remain conscious on china. what is the issue with assets? when we saw more geopolitical tensions easing between washington and beijing last week we did not necessarily get that boost to chinese assets. why the lack of confidence? kieran: part of the problem is global investors, we prefer to sell into any strength we see rather than get involved in china. obviously the market is clearly cheap.

but they are also having a really tough time getting out of, you know, we are more than a year on now, getting out of the lockdown situation. the economy is not strong. the property market is a big problem. there has been a few possible solutions floated. now a white list for is ok to lend to a list of 50 companies. this is really dragging on the overall economy. against the backdrop of not great demographics etc.. there's lots of reasons why the market is cheap. as we see with things that look extremely cheap, it sometimes takes a little bit of positive news to catalyze or to drive upside. we lay it over the geopolitics future and that is why we are where we are in china. shery: we have seen this

decoupling happening with broader emerging markets. given that we have a weaker u.s. dollar, could we expect a little more upside for ems? kieran: you know, theoretically yes. china being the biggest part of e.m., if we remove that we have the next two thirds. as we have seen with markets like latin america, a lot of odd things can happen. a lot of potential pitfalls. we prefer to stay away from that sort of situation where there are such great stories in other markets. like the u.s.. possibly japan. shery: good to have you with us. kieran calder at ubp. we have more regulatory action in the crypto space. haidi: we broke that news about the sec accusing crack and --

kraken of running an unlicensed exchange. we have that response from kra ken saying the news today has no impact on the products they offer, they continue to provide services to clients without interruption. they are saying they disagree with the sec in its complaint and that the law is on kraken's side. the claim is they need a special license. kraken says this is incorrect as a matter of law, false as a matter of fact, disastrous as a matter of policy. we will continue to watch this. certainly unequivocal denial from cracking, saying they will continue to provide services, today has no impact on their product offering and they fundamentally disagree with the sec claims.

the security exchange commission accusing kraken of a wide range of violations a year after the $30 million settlement with kraken over other alleged misconduct. this latest salvo against the crypto sector, they said they had a commingled customer assets with their own, paid expenses from bank accounts that held customer cash as well as alleging they are operating as an exchange, broker, dealer, and clearing agency without proper registration. still ahead citigroup is slashing hundreds of senior management roles as part of the biggest overhaul in decades. we get an update on the shakeup later this hour. shery: next, satya nadella talks about hiring sam altman as openai staff threatens to dropship if there founder does not return -- threaten to jump ship if there founder does not return. >> we continue to be committed to openai and committed to sam and the team irrespective of

where they are.

haidi: microsoft chair and ceo satya nadella says sam altman and greg bachman in the process of joining the firm. nigella says he remains confident -- nadella says he remains confident in altman's leadership. >> we continue to be committed to openai and committed to sam and greg and the team. irrespective of where they are. sam has chosen multiple times to work with us and that is fantastic. the real thing is the capability that microsoft has across the tech stack is what attracts great people like sam. innovators like sam, when it

comes to ai, to come to us, and we are thrilled about it. >> you quickly hire sam as well as greg. we are hearing sam wants to return, investors want him to return to openai. how would you feel about that? >> we want to partner with openai and we want to partner with sam. irrespective of where sam is, he's working with microsoft. that is the case friday and that will be the case today. i absolute believe that will be the case tomorrow. >> what are the conversations you have had with openai's current board from their perspective? where do things stand, and have you talked with emmett scheer, the new interim ceo? >> i've had conversations with him. there is no real difference from where we were when we were working with mira when she was

interim ceo, when sam was ceo, and emmett. my message is very clear. we remain committed to openai and its mission and its roadmap. they can count on us. as i said, we are also committed to sam and greg and team that want to join us if they are not at openai or anyone else who is at openai who wants to go somewhere else. we want them to go to microsoft and continue to work here and in partnership with openai. emily: why was sam fired? to your knowledge, was he involved in any wrongdoing? has the board given you a reason? satya: as far as i am concerned, we are confident in sam and his leadership team. i have not been told about anything published internally at openai that the board has not talked about anything that sam did other than a breakdown in communications. i was not directly told by anybody from their board of any

issues and therefore i remain confident in sam and his leadership and capability and that is why we want to welcome to microsoft. emily: to support a return of sam altman, microsoft wants changes to the board, governance , to the overall contract with openai so something like this never happens again. what specifically are you looking for? would you want a board seat? if not what else? satya: we definitely want governance changes. surprises are bad and we want to make sure things are done in a way that will allow us to continue to partner well. this idea that somehow suddenly changes happen without being in the loop is not good. we will definitely ensure the changes that are needed happen. we continue to go on the partnership with ant -- and we

continue to be able to go on with the partnership with openai. shery: let's stick with the chaos around openai and how it could reshape the world of artificial intelligence. annabel joins us with more in hong kong. what does this signal about the maturity of the industry? >> it has been one of the more sort of existential questions that has come out of this openai crisis. the industry, is it really ready to handle the implications of bigger companies, more mature, with more developed status or space? one of the key things that has been highlighted by people tracking this is that sam altman's ousting has highlighted the so-called key man risk. this is a well-known phenomenon. as of monday really the weekend chaos at openai that started friday when he was let go, well, just the last day or so we have had more than 700 of the organizations near 770 employees

signing a letter to say they might actually quit to join altman unless the remaining four person board does resign. we saw the chief scientist who was really one of the key people who organize the ousting joining on the fray because he took two social media saying he regretted his participation in the board's actions and he never meant to harm openai. he wanted to do everything in his power to reunite as well. what has happened so far is just highlighting an extreme case of what is an older concern in business, that some companies are very vulnerable to the departure of key personnel. sam altman as we have seen has got a lot of support behind him, whatever he does next. >> when we spoke to jay munster

earlier he said we are seeing circling. there's got to be a big swooping in for talent at this juncture. we did hear satya nadella signaling his willingness to have altman join openai. i suppose in a sense when it comes to keeping that talent and loyalty that might be the best case scenario. >> absolutely. i think jay munster as well ranking the order of tech companies who could benefit from this situation but certainly microsoft is most at risk because they have channeled so much money into openai. around $13 billion. they are by far the biggest backer the company. we are hearing those big investors, thrive capital, coastal ventures, they are looking to protect their investment does well in openai. they are also possibly looking to have him reinstated. that is according to people familiar with the situation. since friday as well, sam altman has been keen to return to his

position. now of course as we just heard, satya nadella saying he is -- he as well would be open to seeing openai retaking sam altman the company. he did not say there were any conditions other than reshaping the governance structure. we know openai's structure is at the umbrella level a nonprofit organization and the activities including the for-profit section have been answerable to the board. he has indicated perhaps governance changes would be needed. he was not clear cut in what exactly he was expecting. we do understand from people familiar with the matter that the startup's current board, or openai's current board would need to resign and governance would need to change an order for it not to happen again. microsoft keen to hang onto sam altman and pursue continued

interest in openai. haidi: we continue to follow the twists and turns of openai and sam altman. the other riveting story with a lot of twists and turns us of course what happens next for china's troubled property sector. more support does appear to be on the way with bloomberg learning regulators have drafted a list of 50 developers eligible for financing. for more, are greater china ceo executive editor joins us from beijing. do you rank this on the spectrum of a big supportive move for more of an incremental drip feed measure? what do we know? john: it is substantial in that we saw property lending fall for the first time in september. it continued to fall in october.

sales continue to be depressed. that is putting pressure on the liquidity situation. the last thing beijing wants to see is we have a lot of developers that are in trouble. we want to see more developers falling into that hole. this is an effort to get ahead of that. is telling financial institutions the names on this list are safe. this is the regulator trying to step in and make sure the crisis does not spread further. >> we saw chinese dollar bonds rally after the report. can we expect investors to react more positively and the optimism to be sustained? we have seen the trickle of measures that have not necessarily instilled confidence long-term. john: the overall situation, there are developers, chinese developers that will remain in

trouble. they are going to struggle. we had a note from goldman sachs yesterday forecasting 35% rate of default from high-heeled chinese property bonds. that stress -- is going to continue. trying to invest in this market is going to continue to be difficult. this effort is trying to separate those who are in danger and those who are going to be ok. if anyone looking to get into high-yield, the market is still choppy. haidi: john, on the ground i'm wondering what it is like in china. the sector is so correlated to so many industries but also to household confidence and wealth. is there a sense things have bottomed out? is there expectation these

measures are going to start rebuilding resilience in the broader economy again? john: in terms of the property market and home prices, we have continued to see declines. right now the sentiment on the ground seems to be anything outside of the big major metropolises, beijing, shanghai mentioned jen -- shanghai, shenzhen, you are taking a risk. we have people moving into the larger cities. smaller cities are losing population. that has a direct effect on property prices. the overall sentiment economically is slightly better. we have seen a pickup in consumption and consumer spending. the meeting between president biden and president xi helped. that was a big overhang. tension between the superpowers. that weighed on people. the overall situation is improving. i do not think we are out of the woods yet.

shery: more to come on daybreak: asia. this is bloomberg. ♪

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a brilliant reality! chase for business. make more of what's yours. >> equities across asia looking mixed despite the rally on wall street. the nikkei led lower by real estate and consumer discretionary stocks as we have the yen strengthening for a fourth session. we are talking about a five-week high against the u.s. dollar. the kospi trading at a two-week high. we have export numbers with the first 20 days data rising more than 2% on year. this is bloomberg. 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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>> you are watching "daybreak asia." 90 minutes into the session for aussie stocks. broadly you can see the key levels we are watching. trading volumes are very thin so far. well off the 20 day moving average to the tune of 20% from where we typically would be in the session at this point. that is the state of play as we have been discussing. it is quite a quiet week in terms of eco-data. we are awaiting key earnings, the likes of nvidia later tuesday. you have generally the thanksgiving holiday. perhaps people just more on that wait-and-see retreat mode. let's change on. even with that dynamic in play we are still seeing asian stocks topping what has been a key hurdle. the 200 day moving average. the gauge is actually just testing that at that point. could be a key momentum indicator. a supportive factor as well for

asian equities generally. even though as i said we are trading quite flat. let's change on because of the sector moving today, raw material stocks are leading the gains. that is coming through from the aussie session so far. you can see the likes of rio tinto, bhp for instance. iron ore as well to track given it is above the $130 per ton market, the highest level we are seeing since april of last year. >> we are getting the rba minutes as well. the key takeaway is the fact we saw the hike come through on november 7. these are the minutes from that decision meeting. messaging seems to be they did that to keep inflation expectations anchored. they said they want inflation to remain on track to return to the 2% to 3% target and the really resilient labor market still playing through. they hoped monetary policy would mitigate an unwelcome rise in inflation expectations.

even modest increase would make significantly more challenging and costly to return back to the 2% to 3% inflation target in a reasonable timeframe. also driving home the whatever it takes messaging. whatever is necessary to return inflation to target. we have michelle bullock speaking also earlier this morning in melbourne saying supply-side shocks remain a challenge. the inflation challenge will be critical over the next one to two years. supply-side shocks could still be something that comes through and challenges what the central bank has do now. we continue to watch that. meantime, repricing when it comes to fed expectations, softening data when it comes to the u.s. economy, has been having an impact on the greenback. the u.s. dollar extending last week's drop. the fed is perhaps near the end of its tightening cycle. take a look in terms of how

overextended selling has been. particularly when it comes to the european currencies and the scandinavian currencies. we are looking at solid territory in the g10 space. joining us now is richard, the head of fx strategy at -- is it a dollar result, is it overdone? >> the dollar is's settling into a steadier pattern of declines. in november it was hit by the weaker than expected jobs figure. then of course last week we had the softer cpi figure october. interestingly, the u.s. dollar was hit mostly on those two days. but outside those days, where there is no marquee data, the u.s. dollar -- late last week and so far this week it has shifted. we have sessions which are free of any marquee decisive market-leading impact. yet the dollar has been gently selling off.

how are feeling -- our feeling is it has more to run, another couple percentage points. the expectation has to be for markets at least that if we see another softer figure reinforcing the message the labor markets lost momentum, and if we see a softer figure, reinforcing the message we have a ton of cpi that will lead us into the fomc were markets will be speculating around the possibility the fed could codify their statement or perhaps the press conference could send a more decisive signaling perhaps the tightening cycle has drawn to a close. it's going to be a contentious debate. fed officials do not want to signal that too soon. if we get back to back softer jobs figures, softer cpi figures, it is pretty clear the fed forecast at the very least, the dot plots, the growth projections, will be implying

the fed's tightening cycle has drawn to a close. >> the cycle may come to a close without expectations of rate cuts. what does that mean? do you see any kind of vulnerability to rate cuts seeing further dollar weakness? >> the near term idea a stronger signal from the fed the tightening cycle is coming to the end is enough to trigger near-term downside, it is a separate question about rate expectations for 2024. yes, the u.s. economy appears to have lost a little momentum. inflation is becoming more entrenched. at the very least u.s. economy still growing around a 2% pace. until we see a sustained series of weaker jobs numbers, further entrenched disinflation on the order of 5, 6 consecutive months in a row, fed officials when it is very clear inflation is tracking to a two handle, at

that point we will start to see fed rate cuts. that is a story for the second half of next year. but you are right. rates markets are pricing in the first rate cut by may and june of next year giving some modest chance of rate cuts beginning in march and april. that is aggressive even for fed officials. haidi: we are starting to see divergence between the rba and the fed. does that mean we are going to see recovery for the aussie? richard: the fundamental backdrop for the aussie dollar has shifted more constructively for several weeks now. the fact markets are pricing in fed rate cuts to begin from april and may of next year, 100 basis points, that makes for quite a contrast of the rba. rate height risks still priced

in understandably given the rba revised forecast, no persistence of inflation pressures are upside on ongoing strength of the labor market. moving in the aussie dollars favor for ways it has not in a long time. that is a fundamental supportive factor. it looks like it's going to make a quick beeline for $.60. the idea of a return back to the june-july highs, that is a bit of a stretch. at the very least the interest rate backdrop is more supportive. china's economy thinks policy support is moving beyond the bottoming out phase. potentially developing what i would call step velocity. that is constructive as well. between that, the fed, the more hawkish sound -- the aussie dollar environment is the most supportive we have seen in months. haidi: how far does the weaker dollar take the yen?

to a point and then it is up to the boj? richard: that is a good way to put it. dollar-yen, including this year, it has been exclusively about u.s. yields higher, running toward 5%. dollar-yen's move was very close. the upside pressure in yields has dissipated eerie the upside pressure on dollar-yen has dissipated. at the end of the day we don't think we will be cutting rates anytime soon. it is hard to see u.s. yields coming in dramatically lower, so that's going to limit the downside for dollar-yen. the more meaningful multi-month move lower in dollar-yen will ultimately need to be ushering in or nurtured by a boj moving meaningfully on policy. we've seen incremental steps this here around allowing the 10 year to move more flexibly. at the end of the day jgb's have

only risen from 0.5% to 1%. even when they condensed rate hikes we are talking about negative rates toward zero. nonetheless it is progress in that direction. where the boj to move toward a more concerning stance of removing policy accommodations such that the policy rate went well above zero, jgb yields went up 20%, that is a supportive environment for the yen but we are still far away from that. at the least, for they nurtured, pressure on dollar-yen -- for the near term pressure on dollar yen has been alleviated. the big fall in dollar yen is going to have to come and the boj start speaking more forcefully. haidi: for all the economic woes, dollar china has been uneventful. richard: realized volatility in the currency virtually sunk to zero in part because of the pboc

intent on sending a message about stability. that being said, a lot of the upside pressure on single dollar yuan was emanating from u.s. yields. the pressure has now been somewhat illuminated. that's removed one upside, one source of upside fuel for dollar china. also the fact policymakers in china are adopting a more proactive stance on policy. for a long time the steps were piecemeal and ad hoc. we have not seen a comprehensive step to support housing. but they have agreed to breach the traditional self-imposed wall around fiscal deficits in excess of 3%. we will be seeing fiscal support coming out of that. looks like the pboc may well be looking to utilize their supplemental financing fund, which ultimately is considered

as china's version of qe. essentially getting liquidity or central bank digitally created money into the housing system. particularly the lower tier sectors. that promises to be meaningful support for the housing sector. it looks like the chinese economy is potentially going to move away from the bottoming out phase and might develop a bit of escape velocity such that the economy is on more secure footing. that along with u.s. yields does change the picture a little bit on dollar yuan. haidi: that is better than continuing to bottom out. thank you. coming up next, citigroup slashing hundreds of senior management roles as part of its latest restructuring plan. this is bloomberg. ♪ my mom's life is the most important thing to me. hi mom!

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shery: citigroup has confirmed a fresh round of job cuts as part of jane fraser's sweeping restructuring. hundreds of senior manager roles will go with several top traders also departing. su keenan joins me in new york with more. more big changes coming for citi. su: this is part of a major

restructuring initiated in september 2 eliminate five layers of management in the structure. this is the latest layer or phase as it is called. bloomberg has learned from people close to the matter, it impacts at least 300 senior managers. and that the cuts account for roughly 10% of workers at that level. the restructuring is the biggest such revamp of the bank in two decades. the bank has indicated these cuts may continue around the globe into the coming year. the reductions are part of a bigger picture strategy to get rid of cohead structure and speed up decision-making. in a statement the bank released it reiterated this goal saying, quote, these moves are the right steps to align our structure with our strategy. jane fraser has made clear part of her strategy is to boost profit and ensure consistently excellent results for the client. shares are flat year to date.

they are down slightly on the day. but even before the restructuring began citi had cut 7000 staffers and with a bump up in the stock after the restructuring was announced in september, that was a signal wall street really supports this move. haidi: how much more pain could there be going into 2024? su: there's no exact numbers from citigroup even on this latest move which sources have confirmed to us is more than 300. but again individuals and observers in the market say the next round of cuts when this is ultimately done could be in the thousands. you have to remember it started at the highest level in september. fraser eliminated two core corporate units. she wanted to get rid of cohead structures to speed up decision-making. now it is the senior management level.

we also understand that involves top traders. bloomberg reporting indicates the head of emerging markets credit-rating, the head of corporate's trading, and the head of equities in europe, they are part of the employees who are deporting -- departing. the next level could go down into hundreds of staffers and even thousands more when you consider back office workers. fraser is the only female head of a major wall street bank. we did see the stock up 9% since these restructuring was announced in late september. that signals any investors believe she is on the right track. citi has long been viewed as bloated and perhaps larger than it needs to be. that is something the ceo appears to be going straight at. back to you. shery: su keenan the latest on citi. mcdonald's will buyback

carlisle's nordea stake in the partnership that runs the rest rate -- the restaurant chains business in greater china. the company will increase its stake in the project from 48% -- to 48% from 20%. a chinese conglomerate will continue to hold 52% of the business. xiaomi has posted its first revenue gain in two years. sales reached $10 billion beating estimates of $9.8 billion. the company says it is hopeful global shipments will jump during the holiday quarter after the recent launch of its 14 series funds. x ceo linda yaccarino has acknowledged the pause by several advertisers over antisemitic content, some of which was endorsed by elon musk. she blames what she calls a misleading and manipulative report for spring companies to

halt spending on the site. musk has criticized the report from media matters which said ads from big brands were placed near offensive content. software maker c3 ai has slashed jobs citing employee performance and the need to cut costs. staff were fired across departments. it is unknown how many people were affected. c3 ai says it regularly manages employees and has over 100 open positions. more to come on daybreak asia. this is bloomberg. ♪ hello, brent. hi? if you had to choose, would you watch paint dry or compare benefits plans? compare benefits every time. come on, you know how complicated benefits can be. well, i run payroll with gusto. they make it easier to find benefits like medical, dental, and vision for my whole team. man, i think i'm going to need new glasses.

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are we still talking about tv? live tv and sports. and more! but mostly sports. that's fubo! >> these are stocks we are watching us trading gets underway. hopes of a jump in shipments for the holiday quarter abound for xiaomi. trip.com reported revenue that met the average analyst estimate. another big day ahead for chinese earnings. baidu set to report. the property sector also a major report. regulators are drafting a list of 50 developers eligible for a range of financing supports. let's get more from our managing editor for asia stocks.

how do we expect this to play through when it comes to the property names? lianting: we are seeing knee-jerk reaction already among investors. at least bond investors. we saw along four up about three cents on the dollar. if you look at golden dragon there was a knee-jerk reaction of about 3% jump overnight. but according to jp morgan, this kind of excitement may be just very short-lived. that is because investors are getting fatigued with this kind of speculation or drip feed. according to jp morgan, speculation for the property sector lasted on average two days. if you look at yesterday's share reaction, the bloomberg intelligence gauge was up 2% in the morning on the news china's

vying for more funding support for the sector. but it ended the day pretty much flat. it is basically a short-term trading opportunity. shery: big tech earnings coming up. what are we expecting the reactions? lianting: people are expecting lackluster. for baidu, a slowdown in china, advertising revenue, the bulk of its revenue source. and for kuaishou, the company has been dogged by -- and the stock is are made volatile. the september quarter likely fell from the previous three months. we have seen a lot of earnings

from the likes of alibaba and tencent already. some of them did resort earnings that were strong but they were not rewarded with a decent share pump. that is because investors still expect a lack of growth catalyst in the long term for the sector. haidi: we have seen some consumer facing earnings. we are waiting for some key ones. is there a sense there is a tone around confidence at all when it comes to chinese equities? lianting: it is quite divided. there is better sentiment for example toward the gaming sector. tencent did report decent earnings and share performance has been better than the likes of, say, e-commerce. so alibaba and jd and pdd and those guys have not been doing

very well. that's because of the very competitive landscape. there is mates one in the fray as well. people are expecting long-term growth and profit margins for the e-commerce sector to really be depressed. also the consumption sector as we have been talking about on the show has not seen a significant rebound. there is a little bit of diversions going on. -- divergence going on. haidi: could see a bit of upside into trading in today's session. take a look at fx. we were talking about how the dollar is looking compared to the euro and the scandinavian names. against asian trading pairs you could see upside for asian currencies. respite continuing for dollar-yen, softer for a third straight day taking some of the pressure off when it comes to the bank of japan.

policymakers, given we have seen the 150 level for quite some time. the yen really does continue. we are seeing the likes of pimco put in their position when it comes to the yen call. taking a look around the region, we were speaking to westpac, seeing easy reach for the aussie dollar. iron ore fundamentals are also up. so much of this down to the dollar weakness. >> u.s. futures muted after the tailwind we saw from wall street. the nasdaq at the highest level in 22 months. china futures also pointed higher at the close. this is bloomberg. ♪ the chase ink business premier card

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