♪ >> you are watching "daybreak:

asia." coming to you live from new york, sydney and hong kon>> we o asia's major market opens. >> australia has just come online. nvidia's earnings fell short of sky high expectations among investors who have piled into the ai boom. binance's ceo hit with fines after pleading guilty to criminal charges, agreeing to step down ahead of his sentencing. plus sam altman set to begin talks with openai's board of investors about returning to the start of heat cofounded -- the startup he cofounded. >> investors are really looking carefully at the nvidia earnings that came out and after hours. -- in after hours. the move that we are seeing is

an indication that investors are disappointed even though the numbers were blockbuster results. that's one of the key themes we are watching. we had fed meeting meetings coming through in the session telling us jay powell and his colleagues at the fed will not hesitate to hike rates again if the disinflation trend doesn't continue. stockmarkets, taking it in stride. the question is whether the rally can extend. there are some things investors can look at, optimism particularly in the asian region with low yields coming through, so it's looser financial conditions, the weaker greenback as well, but stocks here you can see were flat coming online this morning. let's take a look at what we are seeing in the rest of the region -- again it is that same, a little bit of weakness, to the downside. . but the numbers are smaller moves. another range bound session. we will be tracking trading volumes throughout the session today. katie: we continue to see the

loss is being extended in the new york session. we are talking about u.s. futures down after the s&p 500 fell in the new york session. we had a touching that overbought level. we are still very close to those levels given the s&p 500 has added about $6 trillion in market cap this year alone. early priced for perfection is what some people are calling it when it comes to the equity space, given that of course there's been a lot of speculation the fed will pivot towards rate cuts. . it's not something we have seen in the fomc meetings released today. it was at a cautious approach -- a reiteration of that cautious approach that they are not ready to declare victory on inflation, on raining and prices. we saw treasuries pretty mixed. we are watching crude prices which at the open are slightly down, but not doing much, because traders are still

sitting on the sidelines when it comes to oil prices given we have the opec-plus meeting at the end of the week. they after our session is all about nvidia, down 1%, given of course that we talked about those very lofty expectations and how even a strong quarter wasn't able to surpass that for a stock that has gained more than 240% this year already. haidi: yeah. these expectations are off the charts. the latest revenue forecast, topping expectations by analysts following another quarter of impressive growth but investors clearly wanting to see more. they are really -- they have really made this a centerpiece of the ai trade this year. joining us now is ed ludlow. take a look at the revenue. these outrageous numbers. but investors, i guess this is the stuff priced and will be on perfection. >> we are talking about the after our sharing -- hour

trading reaction. the performance of the outlook relative to the average of analyst estimates, relative to consensus. nvidia's guiding $20 billion plus or -2% in the fiscal fourth-quarter, in the range of estimates that bloomberg compiles, there are those on the street, not just on the sell, but on the buy side. it is a fantastic story still. even if you kind of forget the market reaction for a minute. there was $10 billion of net income in the fiscal third quarter. that's more net income than nvidia booked in the entirety of fiscal 2023. the conversation now changes to, what does the future look like? to justify the trajectory of this stop. . and what keeps it going? -- this stock. and what keeps it going? the ceo doesn't see a way that nvidia continue -- the ceo does see a way that

nvidia continues going through 2025. shery: tell us about the bright spots. you mentioned the data center division and the star performer but at the same time regional sales to china might be declining? >> it is important to explain this story, what nvidia said first of all through the cfo commentary is the shipment to china will drop in the fiscal fourth-quarter, the period we are currently in. that is their direct impact of u.s. technology export curves that were expended last month. but is not the end of the story. the big part of the revenue outlook is, even though china has been infected and china is 25% of data sales historically, they are making it clear that the demand from elsewhere around the world will more than make up for the lost sales in china. this is a short-term story investors were brace for. the bigger picture is what they want us about in august. what if those u.s. technology

export curves have a long, and definite impact? and -- indefinite impact? and that is the bigger picture here. that one day u.s. technology companies will not be able to do do business in china which is a critical market for technology and data centers as well. shery: ed ludlow there with the latest earnings from nvidia. cypto exchange binance -- crypto exchange binance and its ceo have pleaded guilty to criminal charges for money laundering and u.s. sanctions violations. binance will pay more than $4 million in fines, with the ceo a to step down and pay $50 million as he awaits sentencing. su keenan joins me with more on this story. . u.s. authorities say that binance was funneling money to even hamas and other militant groups? >> binance admitted that it transferred money to hamas and other groups and it pled guilty

to three counts, including anti-money laundering, operating an unlicensed money transferring business, and violating u.s. sanctions, including countries such as iran and syria. cz, as the ceo was widely known, pleaded guilty to the anti-money laundering charge and as noted agreed to pay a major $50 million fine. he also awaits sentencing. richard teng, a singaporean with a masters degree in finance from western australia, now succeeds the ceo. the company is being allowed to continue to operate. cz faces as many as 10 years in prison. however he is expected to get no more than 18 months under a plea deal that appears to have saved him from the harsh sanctions he would've gotten normally under the charges that he was faced with. the u.s. attorney general said that using new technology to break the law does not make you a disrupter, it makes you a

criminal. it was noted that there are significant criminal activities here. the treasury department released a statement showing that binance enabled "illicit actors and dealt with what appears to be a who's who of terrorist and militant groups throughout the world." one of the cftc legal documents shows that back in february of 2019, binance's then chief compliance officer, samuel lynn, confirmed to a colleague in a very casual conversation that they were funneling money to hamas, saying they were using "small funds" and casually saying you can hardly by an ak-47 what $600. it was those kind of comments and that kind of nonchalance the u.s. authorities are saying that now has binance ultimately becoming the largest corporate -- facing the largest corporate penalties in u.s. history and as

the u.s. secretary janet yellen said, this is the largest penalty in the treasury department in history. a major enforcement action and deed. -- action indeed. shery: what happens now? >> we will have sentencing for the former ceo. he has agreed to step down. in the coming months, as expected, that will not be a major sentence because of the plea agreement. again, this agreement was a sweeping deal that settles all charges with the u.s. department of justice, the criminal charges, with the treasury department, and with the cftc. what we also know is richard teng, he was the head of regional markets outside the u.s., he now assumes responsibility for wedding the company. according to a post that he put on x, he will reassure the 150 million users of binance that

the accounts are secure, safe and strong and he will continue to work and collaborate with the language used with u.s. authorities to ensure that binance stays on the right side of the law. again a major settlement, the department of justice, pointing out they have now essentially gotten the two ceo's of the world's largest crypto exchange firms admitting guilt to criminal activity. back to you. haidi: bloomberg's su keenan there. sam altman is in talks with openai's board and investors about a possible return to the company. sources say negotiations at center on his reinstatement as ceo. our bloomberg ai reporter joins us now from san francisco. sharon, but to his and froze, the roller coaster of the -- the to's and fro's of the conversation, the roller coaster continues.

what do you know? >> one member of the board is in active negotiations with altman. are trying to bring -- they are trying to bring him back, trying to bring altman back as ceo. one of the suggestions is altman could return. we really don't know exactly what's going to happen yet. shery: what are the most possible scenarios unfolding right now? >> i think the best case scenario for sam altman is he returns to his original position as ceo. i think the transitional return would be another outcome. the other is this close up -- blows up on the board and they do not bring back sam at all, or they find another ceo. we have also reported that

they are also asking the board for more information about why altman was hired. -- was fired. haidi: a lot of this involves was going on with the staff. what do we know about the latest communication and signals? what could it mean when it comes to where that goes from here? >> support is on the side of altman. he is a charismatic leader with a cult of personality. while over 90% of the staff has backed him through a letter, saying they would potentially resign and move over to microsoft. if altman were not to return to the company. so it is a real threat this company to -- this company could become a shell of itself. shery: bloomberg's ai reported

joining us from san francisco. still ahead, credit sites explains why they see more chinese property bond defaults next year, even as government support improves funding for some developers. but first we will get the market outlook with mainstay capital and why they feel the fed will start cutting rates next year. this is bloomberg. ♪ if your business needs a new application

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shery: you are watching "daybreak: asia." the minutes from the latest fed meeting shall policymakers united around the strategy to "proceed carefully on rate moves." the committee's our rates remaining restrictive for some time with further tightening needed if progress on inflation is insufficient. the committee also noted higher rates are started to

squeeze households -- starting to squeeze households and businesses. our next guest says the fed is now on pause and will likely cut rates in the second quarter of 2024, if not sooner. joining us now is david kudla of mainstay capital management. great to have you with us. what are you seeing in the economic environment that makes you think we are headed towards cuts in 2024? >> great to be on the show. when we look forward at where we think the economy is headed, and we look backward at what we have just seen for october, cpi and ppi coming in lower than expected, and october, the student loan provision expired. and we have these loan delinquencies whether it is credit card debt, highest interest rates ever, auto

loans, housing affordability, we are seeing the trend in unemployment up to 3.9%, wage growth is slowing, everything is pointing in the direction of the fed may be higher for longer, but paused at this level. we see a cut coming by the second quarter. the markets have june of 2024 already priced in. that could even be at the meeting before. we expect that we do have a pause here by the fed. but they will be cutting in the first half of the year in the second quarter if not sooner. shery: talking about the economy in the u.s., we have been seeing retailers reported. lowe's cutting their forecast. what are you seeing in terms of the american consumer, as we head towards not only the thanksgiving holiday season but the year end, could we see a

santa claus rally despite these issues? >> yeah, the u.s. economy is two thirds of the u.s. consumer. it is very important for the economy and for the markets. but again what we have seen is there's just a lot of headwinds facing u.s. consumers. we are seeing probably some lumpy retail sales through the november and december period. there is about holiday spending. -- there is concern about holiday spending. but we also have a saying, don't get between a u.s. consumer and a cash register. u.s. consumers are running out of their pandemic money. i talked about was happening with credit card debt. but they are continuing to spend. but we are seeing some segments of retail sales suffering.

and some consumers pulling back. shery: you still like megacap tech. i understand that point especially be a thing perhaps we have peaked on rates. at the same time we saw today what happened to nvidia. expectations are so high for that stock and ai in general. i wonder how much leeway, how much room we have to go further up when it comes to their broader tech sector. >> let's take nvidia first, i think that investors have just become accustomed to such blowout numbers by nvidia. nvidia's come a long way so far this year. so even with the blowout earnings revenue they had, not a lot of excitement the stock price in after hours trading, but we think nvidia has more runway had because of the space they are in, in their participation in the ai boom.

with other mega cap stocks, they are trading at higher pe's than the rest of the market, but they deserve it. the growth rates are there. they are not affected by interest rates. they have free cash flow for their investments. within technology is a lead sector. we have a year-end rally. we have a santa claus rally. and the mega cap stocks will continue to go. shery: how healthy is a rally if we don't get more market breath? are we going to get more market breath? >> we are getting more market breath. in the technology sector, we are seeing it spread out a little bit. but let's face it -- the gains this year are about the magnificent seven. the rest of the market, the rest of the s&p 500, the other 493 stocks are about flat on the year. it is still very narrow leadership with those mega cap tech stocks.

we started to see some broadening in the small caps, in value, but it really comes back to that magnificent 7, those mega cap tech stocks, long-duration stocks that are going to do well as rates hold and then fall. and with their overall fundamentals, within their space, they all have a wide mode, that will continue with the leadership for quite a while at least three year end. shery: given how concentrated the u.s. market is, do you go overseas, and what do you like? >> we like, when we look abroad, we like japan. we've been invested in japan this year mostly because we are seeing stocks that have a lower pe historically and relative to other global markets, the reforms that are in place, what we see happening overall in japan, we are positive there. we would like to see the yen to

discontinue its weakening. overall japan's probably our favorite market outside the u.s.. china, we are more concerned about. we know was going on there with the property issues, the various issues on defaults and bankruptcies. so there is a real concern. we have seen capital flows out of china as we have seen capital flows increase into japan. the rest of emerging-markets, especially in asia, they are largely dependent on china. so they have struggled a bit this year. even as you know global supply chains have diversified out of china into some of the other countries like vietnam, that will be a boost in the long run, but we have seen basically lagging markets in asia. europe, we are really neutral on right now. shery: david good luck -- david

kudla, always great to get your thoughts. we have more to come on "daybreak: asia." this is bloomberg. ♪

haidi: you are watching "daybreak: asia." citigroup is said to be in discussions to start a new direct lending strategy by early january and its latest push for a foothold in the blooming $6 trillion private credit market. the initiative could include teaming up with one or more outside partners to provide capital for loans, which citigroup would originate. bloomberg has learned said adele's founder -- citadel's founder is set to buy a stake in the miami dolphins. the owner discussed the topic with griffin along with his

stake in the miami grand prix and the hard rock stadium. no deal has been finalized. it is possible that ross could sell the stake to someone else. shares rose after revenue beat expectations for baidu. the company says its chatgpt style ernie bot has started to add to its top line. morgan stanley's copresident has been diagnosed with cancer. the 56-year-old says he plans to keep working as he begins treatment. he was one of the three candidates on the running to take over from outgoing morgan stanley ceo james gorman. that job ultimately what to ted p. plus month. shery: take a look at u.s. futures at the moment, we are seeing downside pressure of .2% for the nasdaq 100, largely underperformed in the wall street session as well.

the s&p 500 edged lower after hitting that overbought level as well. it's really been about where the fed goes from here and also all of the hype around artificial intelligence. we know that nvidia is under pressure down 1.5 percent after performing very well in the earnings results. but given the skyhigh expectations, really missing what analysts had expected for a stock that's rallied more than 240% this year already. we have more to come on "daybreak: asia." 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

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news when it comes to the west bank leading index -- we are watching to see really how the latest slate of economic indicators comes through in terms of how that guides the rba forward. it is seeing a slight fall of 0.03% there, not a huge amount of move, but of course we will be watching just about every indicator going forward particularly as we have seen a fair degree of economic resilience particularly across the labor market. the consumer has been more or less on a solid footing. but of course we have had these consecutive rate hikes. that is a starting to wear on the cost of living particularly going into that key holiday season. let's see how things are shaping up this week. >> we are just about 30 minutes into the session for the asx

200. you can see we are pretty much trading -- treading water here. if you were to drill down and look at the sectors moving the most, it is the i.t. sector at this point, with a drop of more than 1%. what's driving that? of course it is the nvidia earnings that have come out after the bell. have largely been a disappointment to investors. you are seeing the stoxx lighting in after hours straight, down around one -- stock sliding in after hours trading, down around 1%. the expectations were sky high into the numbers. so it was really going to take a lot to see any sort of big move in after hours. still it is sort of kind of casting a shadow over the session today because you are seeing futures here for the nikkei for instance also looking to drop at the top of the next hour, u.s. futures likewise under a little bit of pressure. sticking with earnings, we have just ended the fiscal second quarter for japan numbers. let's take a look at the results scorecard.

the vast majority actually came in a bit better than expected by analysts. still about 40% missing. what is interesting is j.p. morgan has done the number crunching on this one to take a look at the performance of stocks post earnings. if you were a company that missed, you saw around the 6% drop in the stock following the numbers coming out. that is about 2% more than the historical average. the ones upbeat traded largely in line with that historical average. so j.p. morgan is saying it's really about the seasoned pros versus those new incumbents into the japanese equity market that has drawn in a lot of foreign investors over the course of this year. they are saying people that are need of the japanese market may have had a little bit of unrealistic expectations. it is interesting, unrealistic expectations and japan, perhaps also for nvidia in the session today. haidi: yeah.

as we get into the start of trading in greater china, we will be watching the chinese property developers. in terms of sunac, they have secured funding for one of their property units from huarong, the burglary to a three-year loan of $490 million for the homebuilder -- they have agreed to a three-year loan of $490 million for the homebuilder. a key unit is asking to extend the bond to push back on a note by almost a year to the end of 2024. sources say the troubled chinese conglomerate is offering to pay back the principal installments in january, september, and december. our next guest see more defaults next year. we have the senior credit analyst at creditsights joining us now. in terms of the latest moves,

at least support from the credit aspect, some of these major developers, do you think it's going to be impactful in the long run or are we going to see that market fade soon? >> i think we did see some increasing support measures and some rhetoric coming from the top authority since the conference. we do expect conditions to improve over the next three months for some of the state linked and privately owned developers. for instance. but i don't think they default rate is going to come down next they are. if you look at the outstanding property dollar bonds, about 70% of that are coming from the developers. we don't think this number should go down. if you look at the enumerator, within private developers will still be disadvantaged next year. we expect home sales to improve a bit but that is going to go to mostly the state linked developers.

if you look at the denominator, we are not seeing new dollar bond issuance coming from the sector and the restructuring of the dollar bond defaulted by the property developers. the progress is not great. sunac is a relatively successful case. we need to assess this from a case to case basis. haidi: is interesting you do see more defaults in 2024. what you do expect spill over to be fairly limited. the broader negative contribution from the property sector to the broader economy to be quite limited as well. >> i think the spillover to the credit sector will be quite limited for a few reasons,. if you look at the vast majority of the property dollar bonds, they are trading below $.10. that means the market is pricing and some of the ongoing distress within the sector. another sector investors were concerned about is the local

government financing vehicle. we are seeing conditions improving for the sector. recently we went to china. we spoke with the privately owned enterprises outside the property sector. they did mention the on shore bank loan is becoming more available and cheaper. for the broader economy, i think the property sector was going to be a smaller drag on the economy. we are seeing some of the government, related to other projects like social housing, there is infrastructure and an external environment turn slightly more friendly for the chinese corporate. these are some of the positive surprises for the chinese economy and could help cushion the ongoing active impact on the property sector. haidi: outside of property, you see more opportunities when it comes to china credit? >> yes, we do.

i think a lot of investors are very much underweight china. we are seeing investors saying, we are not investing in china at all. i think there's some way to hedge or trade on the potential upside surprise using some higher beta investment-grade credit. they are relatively safer. these include some of the high beta triple b. some of the companies in the financial sector. and the far east horizon. we are getting more comfortable with chinese asset managers after the recent changes in their local and greater integration into citigroup. haidi: do you think there will be broader support towards em credit in 2024? >> yeah, we do think so. our you a strategist thanks -- u.s. strategist thinks it is

going to lead to lower u.s. treasury rates. when it goes lower, it is supportive for em credits. we are turning more positive in terms of the direction of the treasury movement. we think this is positive for the inflows into the em credit market, including china. haidi: always great to chat with you, selena zheng. shery: when it comes to em fx, we have seen a lot of upside with latin american currencies because of u.s. yields starting to come down the last few weeks. brazil's central bank president says policymakers have room to continue lowering rates, with inflation well behaved, even if it is still a little bit above target. i spoke exclusively with him, who says brazil has g ained credibility with capital

inflows staying strong. >> we have had a good year. we like you said started hiking earlier. we had the view that the inflation was not as temporary as it was advertised in the beginning for many different reasons. we did an extensive cycle of tightening. i think it worked. at the same time we can say we had somewhat of a soft landing. we were able to tame inflation with almost no change in the estimates for growth. also credit fell, but very little. employment is relatively well. we have seen growth, upside, even with higher rates. now we are initiating -- we have initiated a process of lowering rates. it's difficult to say where this is going to end.

depends on many different factors. but brazil is doing well and we are confident that we were able to stabilize inflation. we will look at expected inflation even though it is still above the target, it is very well behaved. shery: tell us about the divergence with longer-term inflation expectations. how will you manage that? is that going to be a problem? >> the long-term expected inflation, you have the forecast from the economy and the implied inflation from the market. both are trending lower. still a little bit above the target. what we think that rates are so restrictive in brazil, that we can continue with the process of lowering rates. because as inflation goes lower, the real rates go higher. we have space to lower rates and still be in the respective camp. shery: you are saying that

for the next two policy meetings were so, the question is, what happens after? are we correct in understanding what comes after those two policy meetings, that you have visibility for, we should expect perhaps smaller rate cuts? >> we can't say for sure. the only thing we are saying right now is we think 50 dips in an appropriate pace to follow and we will see them for the next meetings. shery: -- haidi: much more to come here on "daybreak: asia." this is bloomberg. ♪

haidi: the israeli prime minister says the will to eliminate hamas will continue -- war to eliminate hamas will continue. our correspondent joins us now. we have been talking about this for some time, a pause or cease-fire, what do we know? >> israeli media are reporting they expect 50 hostages to be released under the agreement, which is thought to be announced of course, women and children basically, in a four-day pause

in the fighting. further to that is the idea that hamas, the people holding hostages, because it's not just hamas, would release ton hostages a day for every extra day of the -- 10 hostages a day for every extra day of the pause. that is where things stand, the contours emerging from the deal. but israel's cabinet needs to sign off on the deal. netanyahu has said clearly this is a pause, this is no cease-fire. shery: we are seeing china trying to bolster its credentials as a global peacemaker once again. president she weighing in -- president xi weighing in. >> that's right, he spoke at the summit and called for the release of all civilians

being held and a cease-fire as well. as china is stepping up its role here when the conflict is looking so intractable and the diplomatic situation is so difficult, too. what it shows with china is this polarization of a team china and team west, when he is speaking with russia and iran and india and all these other emerging countries, just to sort of up their global presence, on the one hand, it is difficult, the west is upset about russia attacking ukraine, bombing ukraine, the civilian suffering there, while keeping quiet about what israel is doing, to them that is hypocrisy. on the other hand, iran's human record rights -- human rights record has been question over the years. -- questions over the years.

they are stepping into the spotlight here definitely. haidi: in the longer run, israel's not caving to international pressure. what is the next step in the conflict, refocusing on the south? >> that could get ugly from here. you've had tens of thousands of people who have moved from the north to the south. israel's in control of gaza city. they are also dropping leaflets in areas of the south, same people need to move away from various spots there that could be targeted. where do these people go? that is a huge question. it is a very small spot, 2 million people. it is hard to get supplies and aid in there. they will hopefully release more aid into gaza as well.

if egypt is not taking people out and aid can't get in, the situation could become quite catastrophic. shery: north korea claims it has successfully put a spy satellite into orbit after two failed attempts earlier this year. bloomberg's east asia government editor joins us with more on this. john, the keyword in the sentence is claims. do we have any confirmation the deployment happened? how much of a security risk would this satellite pose? >> we have not had confirmation yet from the u.s., south korea, japan or israel. it might take some time to see if the satellite is in orbit and operational. if the satellite is working, the operations would -- the operations that it could do

would be rudimentary at best. like imaging. south korea fished out north korea's first attempted spy satellite after it crashed into the ocean. they took a look at it and said it is of no military value. even if it is up there, it is operational, it is not going to be of the level of the satellites you see from the u.s. and others, in terms of taking a look at what is on the ground. haidi: what do we expect next from north korea? is there a sense of -- there has been a lot of worry globally about how much bandwidth there is. given the two wars happening right now. >> right, north korea made it very clear, what they are trying to do next is put more satellites into orbit. the thing is, it's not what

happens in the next few weeks, but the next course of years. north korea's trying to get russia's help, which would probably give it technology to refine its ability, increase the power of its rockets so it can send bigger satellites into orbit which would help it in reconnaissance. north korea has shown that it will keep progressing. when you look at the missiles, the program. there has been very little that the west could do to rein in north korea. kim jong-un said he is not interested in nuclear disarmament talks. haidi: coming up, the chinese chipmaker, a success story for china? we will take a look at how

smic became a secret weapon during the tech war. this is bloomberg. ♪

? shery: nvidia, under pressure in the after our session despite the fact that they had impressive growth and solid

forecasts, they still failed to meet the expectations of investors, which of course have been skyhigh given the excitement over the ai industry and how that could really bring explosive sales gains for nvidia eventually. the stock has already surpassed 240% gains this year, leaving little room for error. you can see there the downside on the price after hours. staying with tech, smic has immersed as beijing's secret weapon in the battle for tech supremacy with the west.phone recently. >> that's exactly right. smic, or "smick," as many people call it, has not gotten the

attention that huawei has. the company was founded 20 years ago by a guy, richard chang, he was born in china, moved as an infant to taiwan, went to university there, then he went to the u.s. and works for texas instruments for two decades. he founded smic about 20 years ago. more than 20 years ago, when china was trying to build its own domestic technology. in the 1990's, globalization was not as controversial as it is now. he got a lot of money from the chinese government. particularly the shanghai government to be able to build out smic and begin to build semi conductors that were quite sophisticated at the time. he used these global connections to taiwan and the u.s. to recruit talent, he got a lot of support. many controversies along the way. he got sued for tsmc for

allegedly stealing some of their ip. smic then ended up becoming the most successful chipmaker in china. haidi: how did they get the equipment to make advanced semi conductors? the question is, can theydo this at scale ? >> this is the big question. smic has been under various u.s. sanctions for a long time. more than 10 years ago, they were trying to buy equipment from applied materials, the big u.s. equipment maker's, to produce chips -- makers, to produce chips. they were concerned about smic's competitive rise and how it could possibly compete and the memory chip business. smic was even blacklisted back in 2020 during the trump administration. the u.s. government has a lot of power over what smic is able to buy and not by.

suppliers that want to sell to smic can go to the -- can go get a license to be able to supply for them but they have been able to get a lot of these machines to me -- to make chips. haidi: peter elstrom there on smic. take a look at the stocks we will be watching when trade gets underway in korea and japan. will be in focus. ai-related shares, really a centerpiece when it comes to nvidia's blowout results. we know the blowout revenue number did not manage to excite investors, that have put so much into this stock. defense-related companies could also move as well after north korea claimed to successfully launch a spy satellite. on top of seamless payroll, they automatically calculate

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s this is "daybreak: asia." u.s. futures extend those declines we saw in the new york session. tech, under pressure, as we have nvidia really under pressure, falling in the after our session given the disappointed investors but of course there were very high expectations from the beginning. annabelle: absolutely. not just a focus on nvidia, but moves on the crypto space as well, binance, looking to pay more than $4 billion in fines. a setback for the crypto sector? a start of a new chapter? certainly something we are watching in the crypto sector. there's a focus on eco-data due out now. haidi: we are looking at singapore gdp numbers that should be crossing the bloomberg. it's a pretty nice beat when it comes to the seasonally adjusted quarter on quarter number 1.4%,.

expectations were for 1.1%. that is the third quarter final reading. the prior reading was at 1%. we are seeing that revision higher there. the gdp year on year, the third quarter final reading at 1.1%. a little bit more than expectations of .8%. picking up from the .7% expectation the previous reading. this comes at a time we have seen inflation continuing to come down slightly when it comes to singapore with softness across other parts of the market as well including the likes of home sales for example, seeing some of that weakness come through. singapore now seeing gdp growth between 1% to 3% and we are seeing the third gdp -- third-quarter gdp number at 1.4% , quarter on quarter in terms of that sector breakdown. we are seeing some weakness

across the goods producing industry, manufacturing, construction, with a negative read. quite a bit of resilience when it comes to the likes of services as well as trade and retail. annabelle: turning to the open for japan markets, korea also coming online, the focus so far is really on nvidia earnings that have come out. upbeat, but failing to meet expectations of investors that had been sold off the into it. we are seeing that stock dropping in after hours even the revenue for the current period is expected to top out at $20 billion. let's take a look at the movers of so far in the japanese session. it is the tech sector under pressure. sales to china from nvidia, expected to drop significantly in the current quarter. that is the state of play here. cash treasuries, very flat, unchanged at this point in time. the jgb yield, also little moved. we did have fed meeting minutes

out in the prior session as well reiterating the cautious approach to interest rates. investors do seem to be taking that in stride. japanese yen, continuing that retreat lower. the expectation is still that the fed will start to cut rates next year. that is again being prompt -- that is again prompting that pullback in the dollar. em currencies, your breast annual performance since 2017. the korean won, under pressure, so far close to that 1300 level, a key psychological level. a story of tech stocks. you are watching the focus on nvidia. sk hynix, dropping around 1.7%. likewise, in the session for australia, the asx 200, again it is the tech story playing out. that is dragging down the index, trading fairly flat. what is moving to the upside are material stocks, the iron

ore story continuing to play out. the contract there, still holding above the key $130 time mark. haidi: let's bring in our next guest for some analysis, joining us now. it was interesting, the lack of positive reaction, impressive numbers out of nvidia. there are large parts of this market pretty well priced even beyond perfection now for a further rally. >> yeah. i think you are hinting toward the right direction. also, either the numbers or the guidance -- the adoption is probably faster than we had expected. i think you are right.

a semiconductor stocks in general had become positive in october. many are between 20% and 30%. maybe it is a bit of [indiscernible] reaction. probably a bit short-lived anyway. haidi: what are your most constructive picks at the moment into next year? the same themes, in terms of expecting that rally in japan to continue, weakness and china to prevail a bit longer? >> in japan, i'd say, broadly speaking, we are neutral, not as negative, but maybe not as positive as others in the markets. most that we have seen is in local currency. converted back to dollars, it was much more modest. we think it should continue

so turn stronger. -- to turn stronger. it's not positive for a number of companies but it is still positive for banks. as far as china's concern, everybody's talking about slower growth next year, but there's also a base effect. post-covid, that was a top year in terms of gdp. no other country was able to hold that sort of speed either. when i look at things like ev's, for example, i feel reminded sometimes of maybe the 1990's, with lou correa -- with the korean carmakers spread out all over the world. this is a time in the ev

cycle which can be the same. there's plenty of opportunity in china. haidi: what are you liking in china? property's going to be a big question mark for some time to come. >> yes. i think one can also take a slightly contrarian view. two things are happening -- since at least the middle of this year, more leverage was allowed back into the economy. that delta only works with a time length. but it should work. also, if we look at the volumes, they are still negative, but not getting more negative. they are going sideways, but not deteriorating further. with that extra level, even stabilizing that with more leverage, maybe it takes another six months or so until we see the signs, but it's not a far-fetched assumption. haidi: you also still like

parts of asean and india. how do you feel about valuations and some of these markets -- in some of these markets? >> india stands out, in a sense. india's always more expensive than most other areas in the em space and even in the world. i could also see what other investors see, structural growth, very pro business government. these sort of positive factors are certainly in place. i take a pragmatic view -- 18 months ago, that market was close to 24, 25 times earnings. now we are talking about 19 or so with solid earnings growth. also as a diversification measure, i know it doesn't look cheap, but it's a bit likely u.s. tech stocks, you compound the earnings, and when you have

compounder's, they never really get cheap. one has to take a pragmatic view and enter that market in any case. haidi: [laughter] it's all about perspective. you also like asian credit. investment-grade credit going into next year. >> yes. we are dealing with a world of slower growth next year. whether it's the u.s., as i mentioned, china. the top two economies have slowed quite a bit. in that environment, you can also think about equities and quality. equities tend to outperform. but certainly the first thing in that situation that an investor would look at is high-quality bonds. high-quality certainly, government bonds, to an extent. we should see returns probably in the high single digits.

pretty lucrative, actually. it is an interesting space. haidi: always great to chat with you, hartmut. let's get you back to belle, continuing to watch the nvidia affect. annabelle: the effect is a pretty negative one, falling in after hours trade. the results underwhelmed investors. the expectations were lofty heading into a stop that has tripled in value over the course of this year. you can see it as the tech sector drop we are releasing here. not just the focus on tech stocks so far, there's an even bigger mover and the session, healius. this is a company that's really struggled with its debt load over the course of this year. even before that. what it did to try to shore up

the debt load was issuing a capital race netted at about 190 million aussie dollars. shares were issued at around 834% discount to the last close. in has been in a trading hold the last couple of days. has just come online this morning. you can see the biggest drop we have seen since the company started trading. taking us back to lowe's from february of 1999. -- lows from february of 1999. shery: still ahead, we dig deeper into the earnings from baidu. what the numbers tell us about the outlook for chinese tech. first, binance and its ceo, pleading guilty to criminal charges facing more than $4 billion in fines. we will look at how the ceo may avoid a lengthy prison sentence under the plea deal, next. this is bloomberg. ♪

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>> the justice department is requiring binance to pay $4.3 billion in penalties and forfeitures. this is one of the largest penalties we have ever obtained from a corporate defendant in the criminal matter. -- in a criminal matter. shery: the u.s. attorney general on the penalties for binance after the crypto exchange and its ceo pleaded guilty to criminal charges. cz has agreed to step down and pay $50 million in fines as he awaits sentencing. su keenan joins us with more on

this story. authorities are saying that binance allow transactions to hamas and other groups. >> the treasury department, saying this is the largest enforcement action in the history of treasury. binance admitting -- admitting it allow transactions with hamas and other militant groups, charging -- charged to the recounts and admitting to it. including anti-money laundering, operating an unlicensed money transferring business, and violating u.s. sanctions. cz, as the ceo was widely known, pleaded guilty to the anti-money laundering charge and as noted agreed to pay a major $50 million fine. the company paying a much larger find beer but combination of a 1.8 billion dollar criminal financial $.5 billion forfeiture. cz faces as many as 10 years in prison under such charges but he is expected to get no more than

18 months under a sweeping plea deal that saves him from serving a much stiffer penalty that would normally be associated with such charges. it is important to point out that at his peak, cz was worth as much as $100 billion. according to bloomberg data, worth about $23 billion as he steps down. the company, according to documents, allowed a lot of transactions to what they call illicit actors. the list is basically a who's who of terrorist and militant groups. the treasury department, also saying the casualness with which the chief compliance officer admitted that they were transferring sums for these groups is ultimately what got them in trouble. haidi: what are we watching for now? >> we do know one of the objectives of this plea deal was

to settle all issues with the justice department, the treasury department, cftc. all the legal woes are now over and it is allowed to continue to operate. richard teng now succeeds cz as the ceo of the company. he had been the head of one of the major units there. the head of the regional markets outside the u.s.. he is now assuming the response ability of renting the company. navigating through the new crypto laws likely to come down. he has said his first goal, to a post that he put on x, he will reassure the 150 million users of binance that the accounts are secure, safe and strong and he will continue to collaborate with regulators. it is important to note that the u.s. attorney general pointed out that binance had risen to become the world's largest crypto currency exchange in large part because of the

crimes they committed and the quote is now it is paying one of the largest corporate penalties in u.s. history. back to you. shery: bloomberg's su keenan there. let's get more on nvidia. it's forecast topped analyst expectations. another quarter of impressive growth. but some investors really wanted more after betting big on an ai boom. joining me is our reporter, jane lanhee lee. the numbers were extremely good and impressive yet investors still wanted more. >> you know, when you give too much, you expect a lot. in the last sort of two quarters, and videos that looks just blew through all expectations -- nvidia's outlooks just blew through all expectations. now there is an additional china concerned po would on the earnings conference call today, they were asked a couple of

times about the china impact. because the latest u.s. chip export controls have banned even the latest china chips for ai that nvidia had created. so they were asked a couple times, what was the impact? the cfo finally did say in the fourth quarter, the outlook of 20 billion dollar revenue would've been higher if they did not have the ban. of course nvidia is now quickly trying to come up with new chips that meet the new export control regulations for the china market. but investors are going to keep watching for what the long-term impact will be on the company's sales going forward, because this is a very important market for nvidia. shery: on those u.s. export controls, we saw that huawei was able to launch its latest 5g phone thanks to smic. what are we seeing in terms of

the broader impact, despite the fact that you mentioned that nvidia has seen -- is expecting some of that hit? >> well, the chinese are going to continue to push ahead in a very aggressive way to obtain sort of what they call chip self-reliance. smic has been able to buy all this chip equipment, chip manufacturing equipment, lithography machines needed, despite the fact that it was blacklisted in 2020, and that's because there's still lots of -- i guess we could call them loopholes. there are export license agreements that allow u.s. companies to continue to export those machines and they have been stockpiling machines for chipmaking

from u.s. companies, also from the dutch company, asml. that helps make the machine that is carved into the chip. it's been innovative, using older technology and older lithography machines to make this latest chip using technologies that are called double patterning. we can expect china to continue moving ahead. one export control lawyer told me earlier this week that it is potentially game over for the u.s. in terms of trying to hold china back in getting to that goal of chipmaking because they have a different standard, they are not looking to be commercially viable. a lot of these smic chips are

very expensive because from what we are hearing, the yields are low, and that means you make a batch of 100, may be only 50 work. -- maybe only 50 work. that is not ok for a company in the west that needs to be commercially viable but in china and the government is supporting this effort. shery: let's turn to the latest at openai. microsoft is looking at governance changes. it plans to request from the start up's board as openai leaders and staff return to business as usual. annabelle joins us with the latest. let's start with microsoft and what sort of changes the company wants to see. >> we knew they wanted to see changes at the governance level. we had that interview yesterday talking about they would be open to sam altman returning as ceo but it would not be back to that old version of governance at

openai. we are starting to get more of a clemson to what exactly microsoft is going to be seeking in terms of the governance changes. the first one could be perhaps seeking to increase the size of the board. they could be looking to boost the experience level for members . microsoft's deal with openai actually did require the board to seek microsoft approval for a merger. that is something that did not occur. in the past weekend, we saw openai seeking to merge with a rival ai firm, anthropic. microsoft will be seeking to shore up investor protections and also adding to the number of scenarios where they can either veto or at least get some sort of notification right. that is what we are hearing from the side of microsoft. we also hear from sources they are waiting for a new board to emerge to have these types of conversations instead.

we are waiting for more clarity on what's happening -- they are waiting for more clarity on what's happening at openai before pressing for more on the changes. haidi: much of these discussions are happening on the drama that we have all been prevented by -- riveted by. it is a sort of, get back to work. pizza will be involved. it is thanksgiving week after all. >> it seems like a tall order, to be honest, at openai, being told to get back to work and ignore all the drama about sam altman. that is the message that's going out on their internal slack channel from the vice president of product. he is essentially saying that the best way for them to channel their energy -- this is a memo reviewed by bloomberg -- the best way to channel the energy is to develop products, so the effort is really to get the company focused back on developing software, forging partnerships, instead of the

focus on the will he or won't he, will sam altman be returning to the firm? that message, also saying that staff can order pizza and ex-pence the pizza as well, even though most of them are not in the office this week given the company has the thanksgiving week off. we are hearing from sources that openai wants this resolved before the thanksgiving holiday. this really could come down to the wire of course since we are approaching it later this week. it's a bit of a tall order, i think, ordering pizza, take your mind off it, that won't be enough if you are an openai employee. [laughter] haidi: pizza that says a lot. -- pizza fixes a lot. i don't know if it's going to fix this drama. [laughter] much more to come here on "daybreak: asia." this is bloomberg. ♪

shery: mixed picture when it comes to equity markets across asia with the nikkei gaining ground, being led higher by utilities and materials. information tech right now is weighing on the index. similar picture through the wall street session with tech underperforming every sector. the kospi is in the red already. consumer discretionary is the biggest hit. we've seen a lot of risk on sentiment for the korean market in this week, given the korean won also rose to that four-month high. we are seeing a mixed picture in today's session with australia gaining and kiwi stocks losing ground. 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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really, the focus for investors is on the nvidia numbers. we've been discussing through the show this morning, at the top line level. the results are a beach but underwhelming investors who had lofty expectations heading into the release. concerns around shipments to china in the current quarter even though sales are expected to come in around the $20 billion mark. these are the biggest suppliers into nvidia in the region. taiwan opening and another 30 minutes from now. still here, you can see the drop across the board. let's take a look at the sector breakdown of the msci asia pacific index. you can see there's a fair bit of green on the screen today but it's that i.t. sector that's drive -- dragging the most. we have a bit of mixed trading coming through. as i said, a lot of sectors are moving to the upside.

what's important to note is just the amount of investors that are sitting on the sidelines. you have those fed meeting minutes coming out, reiterating what we already know about rates. investors are expecting cuts into next year. there's not really enough at this point to really shift the dial for investors. trading volumes well below their 20 day moving average basis. shery: let's now turn to chinese tech earnings. baidu rose after earnings beat expectations. third quarter revenue rose almost 6% to nearly $5 billion. the company says it's chat gdp bots have started to add to its top line that should propel advertising revenue in the final quarter of the year. net income for the third carter. the company's near-term outlook will be driven by emerging strength in china's livestreaming e-commerce sector. that should help push them into

profit earlier than expected. it's unlikely to be crowned the next alibaba. for more on these earnings outlook, our guest joins us. we talked about the bright spots that we saw in baidu's earnings. at the same time, sequential sales and profit slowing down. how sustainable will these gains be? elinor: thank you for having me. q3 is under pressure because of the soft economy. the advertising growth is only up 5%. week e-commerce advertising. cloud revenue down 2% because of the weak demand on transportation. we do expect that things will improve in the full q. advertising growth may improve to five to 10%. because of the e-commerce coming

back. also, revenues for baidu. i acknowledge earnings 4.0 in october. it's now comparable to gpt for which is pretty much the strongest capable large language model in china right now. most of that other large language model in china is around 3.5 level. baidu is very aggressive in terms of incorporating the large language model in their own product. search is now able to give you a direct answer as well as answering more complex questions. that will increase their monetize about currency in the future. they completely overhauled their advertising platforms. now they are able to have margins to create limits with

high cooperation rates. also, they are able to accept natural language inputs as well as conversation to better understand advertisers needs. haidi: we have seen increased competition from the likes of alibaba, huawei, tencent. everybody wants to be in the sector. how much of a risk is that for baidu? elinor: if you look at china large language models, they've been catching up to the u.s. 50% from u.s. and 40% is from china. there's a lot of large language models in china. a lot of them ranked top five according to third-party evaluations. the capability has to catch up as well. earnings at gpd 4.0.

we think there will be a consolidation in china. it's the only one that has a very efficient cloud infrastructure, ai capable as well as applications. we still think that it's going to be very well positioned in the market. it already has accumulated ai in the market. the second largest ai chip buyers in the world. they will likely to continue to outperform the others. over time, we think the key differentiator along this model is going to be applications. it's more on a search part and tencent has their own application. they will still be able to differentiate in the future with the application. we expect that internet companies will be able to gain that share from telco, given the

shift to ai. shery: they have better than expected markets, the results strong. can this be sustained, especially when the chinese economy seems to look pretty patchy right now? elinor: they've delivered quite solid sets of results for q3. e-commerce growing 30% year on year despite the week consumption market. also driving up their advertising growth of 50% and their e-commerce commission revenue is 40%. that rate is increasing. we see this trend continue into four q. we are still relatively optimistic. look at the monetization. it is still relatively low. still able to increase the monetization of their traffic by increasing live streams and expanding into e-commerce which

is contributing about 20% of their revenue. the company doing a very good job in terms of optimizing the cost structure. this year, they beat everybody's expectations, generating 9 billion profits. we think next year, it will further improve to 13 billion. relatively stable path. shery: good to have you with us. turning to the latest in chinese property developers. chinese real estate developer sunak has secured funding for one of its property units from a government-backed asset manager. three-year loan of up to $490 million, half owned by a sunak subsidiary. partially backed by one of china's biggest bad debt managers. haidi: a key unit is asking to

extend the maturity date for $600 million bond, the properties want to push back the maturity on the 7.25% note by almost a year to the end of 24. sources say the troubled chinese conglomerate is offering to pay back the principal via installments in january, may, september, and december. shery: coming up, the 806 to billion dollar consulting sector battles its wildest headwinds in years. we take a look at some of its issues, next. this is bloomberg. ♪

shery: broad upside when it comes to emerging-market crises. now when it comes for the year, we are headed towards the best since 2017. we are talking about gains of more than 3% since a rebound early in october. we've seen dollar weakness on the others if that trade and optimism over potential pivots coming from the fed. it's really been latin american currencies that have seen the best carrie returns, whether it's the brazilian real, and a lot to do with how fast the central banks pursued some of the most aggressive rate hikes,

around the world in the past three years. now going in a completely opposite direction and actually leaving the easing globally. brazil central bank president says policymakers have room to continue lowering rates, given that inflation has been well behaved even if it is still a bit above target. i spoke exclusively with a man who says brazil has claimed credibility by remaining very strong. >> it's important to start saying that we've had a good year. like we said, we started hiking earlier. we had a view that inflation was not as temporary as it was advertised in the beginning for many different reasons. so we did and extensive cycle of hikes. i think it worked. at the same time, we can say that we have somewhat of a soft

landing because we were able to tame inflation with very little or almost no changes in the estimates for growth. when you look at employment, relatively well. we are seeing revisions and growth on the upside, even with higher rates. now we are initiating a process of lowering rates. it's difficult to tell you where this is going to end. i think it depends on many different factors. i think brazil is doing well and we are confident that we are able to stabilize inflation. today, we are going back to the band for the year. we are expecting inflation to go will little bit above the target. it's very well behaved. shery: tell us about the divergence with longer-term inflation expectations. will that be a problem and how will you manage that?

>> the long-term and -- expected inflation, you have forecasts from economists and from the market. both are trending lower. we hope that rates are so restrictive in brazil that we can start to continue with the process of lowering rates. as inflation goes lower, the real rates go higher. there is space to still be there. shery: you are saying that you can see visibility for the next two meetings or so. what happens after? are we correct in understanding that what comes after those two policy meetings that you have visibility for, we should be expecting smaller rate cuts? >> we can't say for sure. the only thing we are saying right now is that we think 50 bets is appropriate.

then we see that for the next meeting. shery: the brazilian central bank president speaking to us earlier. the consulting sector is facing its strongest headwinds in years , battling global economic uncertainty in the fallout from a spree of ethics scandals. amy bainbridge joins us now. in many ways, this is really a year that would rather be forgotten for this sector. amy: certainly for the sector. it must be said once you start looking more deeply across the entire industry, the situation really seems to be a turning point. there have been multiple scandals in the last few years impacting the industry that's been in various different markets across a number of the big four firms. there have been the mckenzie

situation in the united states with the purdue pharma situation which has it -- resulted in hundreds of millions dollars of fines. the industry is facing headwinds of course after the pandemic where there was a lot of hiring that went on and plenty of work from governments around the world. a lot of the firms are now making significant layoffs. looking at a future of less government business as the purse strings tighten and governments around the world start to rein in their spending on this consulting. shery: these scandals have reignited debate over the business model in itself, right? amy: they have indeed. so the situation, that really blew up earlier this year and has been the subject of a parliamentary inquiry. that was because the accounting firm was advising the government about some changes to tax laws.

then it's alleged that they were disclosing some of that information to some of its big clients. that really lifted the lid on some of the practices here in australia. there's been a norma's fallout this year. going forward, there's a lot of call now for regulatory change in this market. the governments around the world as well looking at how things are operating in their markets and went -- whether there needs to be a different regulatory system to oversee consulting firms which largely are self regulated. shery: we go from consulting to the banking sector now with a plunging chinese mma -- mna activity. a slump in the industry that has investors concerned about the business outlook. not just in the city but also in mainland china.

how are bankers and advisors adjusting to the deal slump? >> hello. definitely a new reality. those golden years of investment backing are going slower. both mna and ipo's are headed for a very low volume year. we are headed for the lowest volume of deals in at least a decade. in the fall, it's even more dramatic for ipo's. we are headed this year for the lowest volume of ipo's in hong kong in more than 20 years. so there's not a lot of revenue coming in for investment types anymore. this is not just bankers. consultancies, law firms, and beyond. i would say professional services as a whole.

it's a new reality, a new era. definitely people still try. there are still deals happening. you know, bankers, advisors generally speaking are always scrambling to try to find new business opportunities. we are seeing a slight pickup in deals. some of the bankers we interviewed were saying how they are starting to see some early-stage dialogue with chinese companies looking to buy overseas. you may remember the years of m&a when chinese companies were buying trophy assets left and right in places like europe or the u.s.. those days are definitely gone. we might start seeing some activity in places where chinese investment is still well-received. take latin america or africa or southeast asia. there are still pockets in which activity is taking place. what we are seeing is advisors

also rolling up their sleeves and becoming more flexible in terms of the sector overreach, in terms of the products. just trying to keep busy and trying to stay relevant i would say. haidi: is this having an impact on talent? >> definitely. i think we are seeing a lot of junior talent having second thoughts. you may remember when investment banking was the place to go out of business school. a lot of the new graduates would just face fierce competition to join the top banks in the industry. law firms as well. i think people are being more selective. that's what i'm trying to say perhaps. we are seeing how some professors are also advising those new graduates to also look beyond the traditional

investment banking world. older, innovative areas of finance as well. shery: joining us from hong kong. we have more to come on daybreak: asia. this is bloomberg. ♪

haidi: an innovation center in

singapore, playing a crucial role in automakers electrification strategies. bloomberg's avril hong got an exclusive look. >> hyundai has launched an innovation center on the outskirts of singapore. it's the first car assembly facility in the city in 40 years. singapore was an interesting choice for the location of the center to begin with. it's a city that discourages car ownership. more portly, it doesn't have a car production industry. can day says they are -- there are advantages to the singapore inter--- ecosystem. >> everyone believes in multimodal ways of transportation in cities. if we want to experiment, we need a market small enough for us to have a rapid response as well as mature enough. avril: step inside this automated center and you will see robots and i i -- ai hard at work including spot the robo dog

. the assembly line looks different than conveyor belt production. the norm for more than a century. at the heart of the facility, cell-based production systems. the aim is a seamless integration of human and robots. hyundai wants to test other forms of transport such as highly customized vehicles. news of their bet on flying taxis grabbed headlines earlier this month but the singapore center offered little detail of how it would fit into such plans. >> we will put together to -- the technology stack that is required if the market conditions and of singapore as a city lends itself towards that when the time is right. you can see that happening. avril: the launch was not without speed bumps. hyundai delayed it twice, blaming covid. it initially planned to make up to 30,000 vehicles a year in singapore by 20 when he five.

it now says the production volume is not its focus. the south korean automaker wants to take the lead in future forms of transport and become one of the world's top three ev makers by 2030. it helps -- hopes that technology will help it reach those goals. april hong, bloomberg news, singapore. shery: breaking right now. bloomberg has learned from axios , breaking the story right now, that the israeli cabinet approved the hostage deal with hamas according to the prime minister's office. again, axios reporting that the israeli cabinet has approved the hostages deal with hamas. we know that more than 200 hostages have been capped in gaza after the attack on israel in early october. we've heard from benjamin netanyahu telling the cabinet earlier today that the war to

eliminate some -- eliminate hamas wouldn't stop. right now, we are getting news from axios that the israeli cabinet has approved that hostages deal with moss. still to come, this week's tech driven rallies so microsoft emerging as the winner from the openai debacle. plus, here why fidelity international sees improving sentiment from client on investing in china. bloomberg markets china open is next. this is bloomberg. this is bloomberg. everyday products, designed smarter. genius! like 2.5% cash back on purchases of $5,000 or more, so sam can make smart ideas, a brilliant reality! chase for business. make more of what's yours.

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