shery: welcome to "daybreak: asia." we are counting down to asia's major market opens. haidi: treasury yields again on data showing a jump in consumer inflation expectations. oil swings as opec delays a critical meeting with african countries. plus, bloomberg learns country garden is among the distressed chinese developers in line for financial support, signaling a pivot from beijing. take a look at the set up as we head into the end of the week here in asia. we have oil prices, a delay of opec-plus meeting, and we will see some moves when it comes to the energy space particularly here in australia. we should also mention one of the stocks we are watching, origin set to be delaying that 12.5 earlier dollar takeover. we are hearing that alternative vote has been lobbied late on

wednesday as well which involves that rollover option at a lower price. we continue to watch that story. broadly we are seeing a little downside at the start of trading here in sidney, just about .1%. kiwi stocks opening pretty flat at the moment. nikkei futures looking quite muted. u.s. stocks take a little bit higher, treasuries fell on data showing that consumers expect inflation to persist. here in australia, we also heard some pretty firm words from the rba governor speaking to economic leaders in sydney, saying she sees the current bout of inflation the rba is fighting as mostly homegrown. dollar-china futures also in focus as well. we are seeing ftse a height of 50 -- 850 down .1% as well.

shery: take a look at how u.s. futures are opening in the u.s. session. we are seeing a bit of a muted start after we saw slight gains in the new york session. the s&p 500 rebounding after a brief pause in the november rally. the likes of apple and amazon gaining ground ahead of the holiday shopping season. is it's thanksgiving in the u.s. on thursday, so we are stopping trading for the holidays, but we are wallowing that with black friday and cyber monday -- we are following that with black friday and cyber monday, so we expect to see some stocks move. you mentioned inflation expectations from the university of michigan survey really showing that they remain pretty high. not surprising we are seeing consumer confidence lingering at around six-month lows, and that was really leading to some of those traders winding down on those bets of a fed.

, so that move to treasury space in the 10-year yield down. we continue to see an extension of that drop in oil prices in the asian session. we have seen wti lose ground after we heard that opec-plus was delaying this weekend's meeting until next thursday. they are seeing some disagreements when it comes to production cuts. haidi: yeah, and oil will be a big component in terms of themes we are watching in today's session. let's get to our next guest who says the fed will soften its tone in 2024. great to have you with us. in terms of what -- walk us through in terms of what you are thinking, maybe a little bit of overpricing. how do you position between now and then given the magnitude of the uncertainty? >> we think the markets are getting a little optimistic in terms of how quickly the fed

will cut rates. that said, we do think markets will be stable. we think as long as inflation continues to front run or the slowdown in inflation continues to front run the economic slowdown, that markets should remain stable in expectation the fed will pay the and by early in the year but actually probably cut rates in the second half of the year. we think they are underpinning markets here along with a stable labor market and stable growth. haidi: this idea of the economy should bend but not break. where do you see opportunities? is it still a u.s. story? >> we do like the u.s. still. last year was very much a technology story. some health in infrastructure in the industrial sector, but we think in the u.s. that will broaden out across the specter -- the spectrum of size and across different industries. we are pretty favorable on 2024

within this picture of the fed making a softer pivot at some point this year. elsewhere looking across the globe, we think the structural change that has taken place in japan over the last couple of years includes a focus on corporate governance, focus on shareholder value, increased demand for buyback activity, corporate activism. those structural changes are very long-lasting and should provide a nice tailwind for japanese equities for, we think, quite a while to come. haidi: you are very much in the position of "this time is different, right? will it be a different story for china going forward? there are some compelling valuations that there will be more opportunity in 2024. >> i think the last point you made is important, china is compelling.

we also think there is a policy bottoming. we think the chinese government is really taking important and significant steps over the last couple of months to try to underpin the economy and even the equity markets. we think those two things, the initial stimulus from china and very attractive valuations make for at least an area that is investable again, and global investors should reconsider if they pull away from. >> do you see a broader equity rally as we get into the next year? >> we do. it is interesting. if we look at this year, the average stock, if you exclude the technology, it is barely trading water, and that will be -- barely treading water, and it would only be a couple percent in the u.s. that would be the same for mid-cap and small-cap stocks. as the environment should going forward, we think that the

average stock should start to do better and that tailwinds should support -- tailwinds that should support economic growth will kick in again. some of the economic strains that have been restraining and hindering some of these smaller caps or mid-caps should also start to alleviate and really get the rally broadening out rather than just have a handful or a dozen names. it really should be broad-based next year. haidi: how do you feel about tech in an environment where we might be headed for hire for longer? >> it is higher for longer in a sense because we do believe that the fed is not going to cut interest rates until the second half of the year. that said, we do think interest rates have peaked. we think the fed's hawkish messaging has peaked, and especially in the u.s., technology is a very dominant part of the large-cap equity space, and we think that will

continue for a while in terms of at least being equal performance to the market as a whole. we don't think we will see the same type of outperformance for technology that we saw this past year. we think that was very extreme and unlikely to repeat, but if we look at the drivers for the economy and for technology, they really play into these -- into the hands of these deep pocket and main cap names that are driving the s&p 500 higher. his it's hard to see an environment where technology does not at least perform in line with what we think will be a healthy market next year. haidi: ceo at bmo wealth management, great to have you with us -- cio at bmo wealth management, great to have you with us. origin energy set to consider delaying today's shareholder vote after a last-minute proposal lobbied late on

wednesday night. we have details coming up. this is bloomberg. ♪

shery: oil prices continuing their assent. we have seen the slump in the new york session already. we had u.s. crude stockpiles rising last week, but it was really to do with the expectation that opec would come in and help rein in supplies. we have now heard that opec-plus is delaying its meeting provisionally set for this weekend as its africa members push back against revised output quotas. su keenan joins us now with more on this. what do we know at this point? su: we know the concern is that opec-plus members may not be able to reach an agreement even by this new postponed meeting.

you have already seen if you follow the bloomberg a three-month downward trend. the mideast conflict, the war in israel, there was a concern about disruption supply. it is still a possibility, but only slight. it has been a downward move in oil. this delay by opec-plus came as a surprise to even some of its members, not to mention traders and investors, so producers who had been set to move over the weekend to finalize output levels for 2024 have pushed that decision back to november 30, saying they are actually seeking additional time as two african producers, angola and nigeria, push back against lower output targets proposed by the more powerful members and this uncertainty there could possibly be no agreement any time soon,

deepening the pressure on oil prices. nymex crude is down some 18% since its peak in september. we are also seeing brent crude which had been close to $100 shortly after new year's begin sinking. at one point in the latest london trading session below $80 before gaining ground. oil stock at its highest level since july. russian oil is back on the market so we are seeing a lot of oil in europe. all of this coming, as mentioned, no real firm decision on what oil curbs will be coming out of the biggest oil producers. haidi: what are analysts expecting at this point? su: oil has brought relief for

consumers as prices have come down. analysts expect that behind the scenes, saudi arabia is pushing for more curbs on all the members. they believe riyadh may need to see prices closer to $100. you can see that is a far distance from where they are right now. a widely followed trader and front manager told bloomberg that assad probably wants other countries to cut as well, so he believes it will probably be in negotiation. the fact that there is a negotiation now underway that can end in possible impasse has caused the options market to be a lot more volatile. occidental petroleum here in the u.s. and five other firms are oil producers that have now shut down offshore production in the gulf area due to an underground

pipeline ruptured. that spilled 62,000 barrels into the ocean, the equivalent of two olympic-sized swimming pools. it is being called the worst oil spill since the deepwater horizon incident back in 2010, so that as another complication to the oil trading picture here in the u.s. shery: su keenan with the latest on oil. bloomberg has learned more details on that exclusive report we had for you earlier in the week on china's measures to support the economy. country garden is on china's draft list of 50 companies eligible for support. annabelle: we are getting a sense of some of the names that will be included on this. country garden, as you said is on the list. sino ocean group is another we are hearing. his it's a big shift in stance

-- it is a big shift in stance. a short time ago, beijing was saying it needed to bring in existing leverage, finish existing products, but the fallout has been very noticeable, very sizable, so now they are realizing they need to take serious steps to try to address that. names like country garden even being on this list really point to that because it has historically been one of the most important chinese property developers, along with evergrande, even though evergrande has gotten a lot more headlines the past couple of days, but country garden as well missed payments on dollar bonds for the first time ever last month. now we are hearing that china is taking a lot of steps to try to address this, putting together this list of property developers that it is prepared to support through the crunch. that is the latest update.

cifi holdings is another that has missed payments, said to be included. a lot more detail still to come. shery: on those additional measures the chinese government is taking to support the economy, we are hearing chinese lawmakers are also calling on banks to do more? annabelle: that's right. it really does appear the chorus on this is growing. we are hearing from china's top lawmaking body. some of the standing committee members of the national people's congress. the body has been under the guise of the communist party's leadership, but it calls on banks to do more under the property sector. they are saying banks should step up support for funding of property developers to reduce the risk of additional defaults and ensure completion of housing

project, but standing committee members also had criticisms for other parts, saying that banks need to do more as well, that they could pass more of their profits on to the real economy. shery: what are local governments doing? annabelle: this is an interesting measure coming through. shenzhen is a good example, it is a major tech hub in southern china just across the border from hong kong, and it is considered a tier one city, so it has been a popular place for people to move into. the measures we are seeing to try to increase homebuying in this market as well being hit like other cities in china, so it will be lowering the down payment ratio for second homes to 40% from as much as 80%, and that should be effective thursday. today, local media is reporting that. we are also hearing from the city's housing and construction bureau that local authorities

are relaxing the definition of so-called ordinary housing. that's non-luxury homes that also qualify for lower down payments. analysts say this is another step to try to encourage home upgrades, boost demand for larger homes, so it tells us that tier one cities moving further east, but just another step. we have seen in other cities across china to try and reinvigorate the property sector, such an important pillar of china's economy. shery: you can get a roundup of all these stories you need to know to get your day going in today's edition of daybreak. you can customize your settings so you only get the news on the industries and assets that you care about. this is bloomberg. ♪

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haidi: israel and hamas are preparing for the first halt in fighting since the war began october 7 two allow for the release of dozens of hostages and prisoners. the timing remains uncertain. even the uncertainty on timing underscores how fragile this agreement is. >> totally. the latest we heard is an official from israel's national security council was saying friday is likely when it happens. that is still 24 hours we are talking about where a lot could go on. the pressure from the families with hostages just got to great.

it is certainly a very fragile situation. obviously, there is still fighting going on. it is very sensitive. i think until we actually see those hostages go on to the red cross, that they are out of hamas' hands, then we won't know it is really happening. haidi: tell us how the cease-fire will unfold. we are also hearing israel will be stopping intelligence drones as well. >> that was part of it. drones over the north, which is where most of the fighting is going on, that would stop for six hours, and that was an issue of contention for a period. if that is stuck to will be interesting to see. the notion of a pause in a way for israel is understandable, to get back there, to show there is

progress being made. obviously, these hostages were taken on october 7. it has been six and a half weeks they have been in gaza under this bombardment, as well, we must remember. for hamas, it will be about trying to take a breather and trying to recalibrate. the suspicion is because israel has bombed so hard and part of the issue has been civilian fallout that hamas is under quite a bit of pressure. this pause gives them time to recalibrate. haidi: we talked about how this also enables humanitarian aid agencies to get in and have a better assessment of the situation. we know that senior officials have told us from the u.s. side of things that even if the goal

is ultimately to remove hamas, mounting civilian casualties will make the campaign very difficult. >> yes, that's absolutely right. the health agency in gaza is linked to hamas and there's a lot of critical questions cast on the. the scale of the war in the delta areas suggest that the numbers we are getting from them are not unreasonable. you also potentially get independent reports of what is actually going on, which is not going to be positive. hamas can try to weather the storm and israel try to keep it going, and part of it would mean there is too much international pressure and israel has to scale back the fighting, and that is

probably hamas' mission. shery: let's get you to the other top political stories we are following. a far right dutch leader says he plans to leave the netherlands government and expects his party to win 35 seats, far short of an outright majority, but making up the largest group in the dutch parliament. he is known for his anti-islamic views and his victory speech after a campaign that highlighted growing opposition in the netherlands. yucaipa minister jeremy hunt has announced a stimulus including a cut to the tax workers paid to fund national insurance from 12% to 10%. the plan is sparking concerns about inflation amid higher borrowing rates. the office for budget responsibility says delivering an economic boost of just under .3% a year from 2025 to 2029.

>> we've supported families with rising bills, cut borrowing and have inflation. rather than a recession, the economy has grown. rather than falling as predicted, real incomes have risen. our plan for the british economy is working, but the work is not done. haidi: coming up next, we will look at a survey showing how inflation is starting to affect the australian middle. what some are doing to counter it. this is bloomberg. ♪

haidi: origin set to be weighing a delay on the takeover vote. >> moving very quickly. origin and the takeover consortium were staring down the barrel of a losing bow this afternoon at 2:00 p.m.. it was one of the biggest deals with 19.1 billion aussie. they knew it was very much leaning towards the fact that this would not get past a vote. australia's biggest pension fund has been opposing this and they own probably abortive 15% at the moment and it's rare for a takeover to get approved when there's a shareholder that owns that much given shareholder in fighting and agreement. what they have done is recut the

deal. they actually lowered the price and offered a backup deal that would be, instead of a scheme of arrangement, as it is called in australia, the backup deal would be what is in australia called just a general takeover where they invite shareholders to bid into the deal. haidi: does not offer compelling? -- is that offer compelling? >> there is quite a lot of support, so it shows how far a big stakeholder can affect the management of the votes. they have also included a rollover of constituents to the original deal so institutional

shareholders or distinct shareholders can come onto the ride with brookfield if they want to. haidi: those on more of the climate activist site have criticized the deal for being too conservative. more momentum on the transition side of things could be good. >> totally. they have been very public about the fact that they want to spend $10 million, $20 million, $30 million putting renewable power as part of the fleet in generation four origin energy, so it will be a huge transition for australia. brookfield especially have a lot of experience transitioning assets. it put the burden really on australian super origin to show that they had their own plans to do this in lieu of such a deal. haidi: that's the latest.

things could change. of course, we have been talking about the outlook when it comes to the rba. the governor says the nation's inflation challenge is increasingly homegrown and demand-driven. the rba, of course, resumed hiking earlier this month, taking their cash rate to a 12-year high. a cost-of-living crisis in the country is starting to budge the australian middle-class as well. we learned just how they are starting to feel the pinch. we are seeing even well-heeled individuals and households starting to cut back. >> what we were looking at is households on $150,000 or higher as total income, and this was a

strata that was aspirational for a long time. we are seeing this group starting to cut back on everything from gym memberships to streaming to how they eat out, where they are shopping. one in five people said they were changing where they were shopping for food and clothing to make it cheaper. over half of this group said they were worse off than they were a year ago. that shows us that this cost-of-living crisis that has already swept group lower income families is starting to bleed into the upper classes and just how widespread it is becoming and how hard it is for people right now. haidi: what is fueling the cost-of-living crisis? we heard from michelle bullock saying she sees inflationary factors being homegrown. karen: inflation is a big one, but the biggest one that seems to be hitting people in cities like sydney and melbourne is 13 interest rate hikes since may of 2022. what we are seeing is that people with a mortgage of about $600,000 were out an extra $1500 a month which might not sound

like a terrible amount, but when you look at people's slush funds and how much they have left over for things like kids' extracurriculars, for shopping, for holiday presents, even, that is eating away a lot of people's extra income and causing a lot of anxiety. shery: will it take rate cuts in order for this to end? what is next? karen: the rba, we are watching very closely everything they do. at the same time, there's new tax cuts coming into effect that will raise the ceiling of the final level to $200,000. that has caused a lot of debate about it $180,000 is still enough to make you wealthy, and it has caused a lot of debate in australia about how much you need to be happy and how much you need to be considered rich. people are ready to put things on credit. they will be watching everything they spend and hoping this pressure comes down somehow. haidi: the cost-of-living crisis

now spreading more broadly here in australia. watching inflation as well when it comes to this university of michigan survey. karen: that's right because it was a really big driver of sentiment in the wall street session because it really led to the treasury yield boosts hitting that 4.9% mark on the two-year, but this survey just out from the university of michigan, as you say, is very widely tracked and what it tells us is that americans are saying inflation pressures will stay elevated over the shorter term. they are expecting 4.5 percent growth over the course of next year, so after 4.4% the last time the survey was conducted, that is a lot higher than what you see, for instance, in that expectations and generally economist expectations as well, and it does tell us perhaps there's a reason the fed will need to stick with that higher for a longer narrative.

you saw that movement in treasuries at the front end of the curve. you've got bond yields moving higher at the front end of the curve. that is not supportive for equities. unsurprisingly, you are seeing stocks dropping, just under .5%. the japanese yen close to that .5 mark as well. should also mention japanese markets are shut today. dollar trading in tokyo at the top of the next hour. shery: of course, we are headed toward thanksgiving in the u.s. as well. plenty more to come here on "daybreak: asia." ♪

haidi: thursday march thanksgiving in the u.s., which is followed by black friday sales. jcpenney says it is maintaining prices from last year as inflation maintains a hold on consumers. >> what we are seeing is consumers saying they will spend more this year. i think what you will see is that consumers are much more focused on value than they have ever been before. we are seeing that in shopping behavior this year. romaine: we have had some reports from burlington, t.j. maxx saying that may be true.

we have higher income consumers also trading down as well. i'm wondering if you see that in your stores as well. >> if we step back a minute and talk about our consumer, the consumer in our store -- we say our customer is america's diverse working families. it is a $70,000 median household income. our customers the teacher teaching our children, medical workers taking care of us and our families. for them, consumer inflation has definitely been a challenge. we are seeing that the consumer is looking more for value, more focused on price. we are seeing more responsiveness to and we are offering promotions and things like that, and we have been really successful by doing what we are saying we are going to do which is taking inflation out of the holiday for our customers. we are taking hundreds of items we had last year and offering

the same price as last year or lower. we have thousands of gift items that are under $15 for our customer. romaine: i'm curious how you are pricing this. is that the full retail price or the price you did after taking into account a discount or coupon? >> i'm talking about the black friday price. our black friday prices are the lowest prices we offer. romaine: how are you going to get people to buy? is this going to be about getting people physically in your locations or more of an e-commerce strategy? >> i think it will be both. we have seen success both online and in stores. we launched our black friday early and saw a big increase in store traffic and also saw a really strong buying online. if you think about the season we are going into, tomorrow,

thanksgiving will be an online day and friday will be a in-store day. to encourage that in-store experience, we will have events going throughout the day. we have events starting at 5:00 a.m., nine :00 a.m., 1:00 p.m. and 5:00 p.m. to give you a couple of examples of what we will be doing, some customers will get $500 off a $500 purchase. in other words, pay for their entire purchase. another will be a receipt that will have coupons in it. at 1:00, we will be giving away diamonds. there's a diamond pendant necklace in each of our stores with 30,000 diamonds right across of your stores. that will keep the excitement going throughout the day. shery: jcpenney's ceo speaking to romaine bostick. the national retail federation says 100 82 million people are planning to shop from thanksgiving day through cyber monday.

this is the most since 2017. the annual black friday/cyber monday survey polled 1200 consumers. stephen rogers is the managing director of deloitte's consumer managing center. great to have you with us. what stood out to you in this year's survey? >> i noticed several retailers reporting a drop in consumer discretionary spending. we expect this to be, as you mentioned, pre-pandemic in size. consumers are going to spend almost up to $600, which is a 13% increase, and that's over half their budget for the holidays. eight in 10 shoppers plan to spend the same or more than they said they would in september.

will they be out there or staying home in the sense that they will be shopping online? >> it has really become a hybrid event, just like the jcpenney ceo mentioned. online retailers stand to do well. most shoppers, though, tell us they don't find doorbusters as appealing as they did in the past or want to avoid the crowds. shery: i was wondering what was going to happen with those doorbuster sales, especially after the pandemic and social distancing became a thing. what have you seen in terms of spending habits and trends, especially since we came out of the pandemic? >> we have an inflation-weary consumer. the curious thing, though, when it comes to doorbusters, they

are bucking the trend. they are twice as likely to embrace doorbusters, so you are likely to see people sitting there at midnight waiting dependent. the other thing is that gift cards are the number one gift category, making up almost 1/3 of what people plan to buy. what is happening is it may be an inflationary hedge. i can buy the $100 gift card instead of the $110 sweater for my sister. shery: we are in the prime working age spending group as well. >> they definitely plan to spend the most, particularly over this promotion period. as you say, they are in their prime family-raising years, so they probably have the biggest list to shop for.

shery: i remember you mentioned gift cards. i was wondering if they are good inflation hedges. >> they are if you are the giver, but maybe not the receiver. the receiver is still going to have to go out and find the right gift for themselves. another interesting effect is you will not get the gift card until the holidays, so that shifts sales out of it. shery: i already bought a few things here and there for the presales and realize prices came down even more now that we are closer to thanksgiving and black friday. what are people buying?

>> they are looking for things where they think they can get the real discount, which is usually clothing, electronics, etc. they are looking for those as they go to the store and to the websites. shery: it was really great having you with us with an insider look at what the shopping season will look like. managing director of deloitte's consumer industry center. tune in to bloomberg radio to hear more from the day's big newsmakers. broadcasting live from our studio in hong kong, plenty more ahead. stay with us. ♪ sports fans built a streaming service... fubo is like the best of cable. plus the best of streaming. thinking of calling yourselves

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haidi: sources telling bloomberg nomura is set to put down $1 billion from its own balance sheet. how does it fit in with the longer-term portion into private markets? >> private markets is nothing new to nomura. they have been making this

long-term push for some time, since the u.k. came in a couple of years ago. this latest development is specifically around private credit. the $1 billion of the balance sheet, there will be a little bit more coming from full partners. this is part of a long-term move that they see in this area. across the world, lots of potential for assets in different parts of the world. nomura quite famous for having done a lot of expansion in various different parts of the world over the years. that is nothing new, but i think , really, this is a long-term push. this is an incremental part of the long-term push, the season taking a bigger slice of private markets generally.

haidi: what is their competitive edge here? >> as we know, we have discussed extensively on the show how many banks are now getting into private credit. the boom and the size of the industry that is becoming so huge means that banks do have to offer a competitive advantage on what they can get. i think for nomura, it is about clients back in japan, but that network they have in different parts of the world that perhaps other banks cannot. of course, the networks they already have for some of these existing relationships that they can build on through this private credit push that i mentioned, which has been a key pillar over the current ceo since taking over the role not too long ago. i think nomura can differentiate

itself in this area of private credit, but as more banks get into it and the competitive landscape gets even more fierce, only time will tell where they come out the other way. haidi: it is interesting because private credit emerged as an alternative after 2008. is it risk-improved in that way, recession-proof? >> if you like it has come full circle, doesn't it, in that sense? i suppose it really depends on your view of the way that the investment performs, these type of investments perform in a high interest rate environment if we are understanding that interest rates do stay higher for longer over the next couple of years have elevated borrowing costs broadly across the s8 universe.

these climate investments still can perform a diversifying component, but we will see how we go into next year, if central banks need to do more than they are doing at the moment. shery: in some other corporate stories we are tracking, two former goldman sachs bankers have launched a new platform matching small businesses with alternative lenders. they are behind fund flow, which aims to give small firms access to deals as little as $1.1 million. they say this will help small businesses raise money based on merit through technology. two projects connected to digital asset entrepreneur justin sun have been hacked in a

exploits. this may have drained more than a combined $110 million' worth of cryptocurrencies. sun confirmed the exchange hdx suffered a hack and has temporarily suspended withdrawals. british chip designer graph core is pulling out of china and laying off most of its staff in the country. the company says recent u.s. export controls on chip sales to china forced them to scale back operations. the move is a major setback for the startup that was once seen as a potential rival to nvidia. the company designs semiconductors tailored to support artificial intelligence software. haidi: we are looking at a muted, caution-heavy day. japanese markets are not trading

today on a holiday, but we are seeing quite a bit of downside when it comes to trading in australia. in particular, that origin vote is in focus. news of this alternative proposal is on the table as well. those shares are halted. we are also watching some of the big names. the governor planned to dramatically expand its policy on renewable energy. we are seeing the dollar gaining on labor day, and rise in treasury yields and maybe a little bit of pressure on the aussie dollar with those pmi numbers. this is bloomberg. ♪

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shery: this is "daybreak: asia." we are counting down to asia's major market opens. after small gains ahead of the u.s. holiday, we saw some gains on treasury yields on economic data. haidi: it is a muted cautious open as we get into a holiday thin trading session. you mentioned thanksgiving underway in the u.s., but also japan as well. let's get you into the open. annabelle: it is a pretty quiet sessions we are setting up for. it is looking ahead here to the open that we see the south korea session today, and that direction is going to be perhaps led by that university of michigan survey. it takes a few minutes or a few seconds to start to see live pricing, but we did have that university of michigan survey

coming out, importantly telling us that americans over the nearer term, so over the next 12 months, still see inflation running hot, higher than what economists are seeing and higher than what fed officials are seeing in some parts, so that will be something that tells us that rates need to stay higher for longer. a big move coming through the treasury two-year yield. it could really move yields this session. this is the state of play for korea as we come online this morning. you can see it is pretty range bound in the session today. yes, you've got the japan holiday, shut for today, thanksgiving approaching as well, so it is really thin trading in the session. we are seeing thinner than usual trading volumes at this point in the trading session, but there's

a couple of standout features we are watching. you had that decline you are seeing, but mostly coming through materials you have an iron ore also retreating. brent crude coming online at the top of the next hour, but we are watching after that opec-plus meeting was delayed and is well, origin to note. this is more on the m&a front, and the stock is suspended in trading at this point in time, but we understand origin energy could be weighing a delay of the shareholder vote of its $12.5 billion takeover bid. sources telling us those details, but certainly a focus on that deal that does appear to be being scuppered at the last minute. haidi: continuing to watch that of course. let's bring in our next guest who says stocks should continue rallying through the year.

with us, the head of asset allocation at chatham wealth management. 2024 looking like a different picture? >> for now, we do expect the stock market rally to continue. i think importantly, if you look at inflation, it will allow the fed to stay back. we believe they have peaked and the fed is no longer likely to hike. this hopefully should be a tailwind for bonds assets, but also the equity market at the very margin. it should put a dampener in equity market momentum in 2024.

haidi: what are you seeing the most constructive positioning on as we get into 2024? >> the japanese equity market we have a bullish view on. for one, there are certainly increased in the japanese market is in -- is emerging from the inflationary market of the last few decades. they want to see the price flow price pressure sustained for a bit longer, and the

acknowledgment we emerge out of this deflationary scenario, i think it will be positive when it comes to multiples for japanese equities. even japanese equities is one area we like. we can see the economy emerging from deflation into a more normalized routine. haidi: my next question is china because for me for a lot of investors, that will present the most risk going into next year. take a look at this chart which suggests maybe we are seeing a bottoming out of chinese equities, and maybe the stars are finally aligning. the signal indicating the downtrend has been taking off

since february 2021 and may be coming to an end. are there enough reasons in terms of how much we have seen valuations slump steadily throughout the course of the year that we are seeing wrapped up support for property, some of the geopolitical tensions have perhaps at least thought -- thought -- thawed a little bit. do you see the possibility of a rebound? >> there has been a series of supportive measures announced in recent weeks. the most recent being financing for developers in china. i think importantly is look about the dollar as well as u.s. bond yield. that is key to watch, but historically, a weaker dollar

environment tends to be destructive when it comes to emerging assets and by extension, chinese assets. the 4.6% level on the u.s. 10-year treasury bond is questionable. for now, we do believe use will consolidate, but going into next year, we do expect small weakness in terms of economic data in the u.s.. we are looking for at least three rate cuts of 100 basis points or more going into 2024. haidi: there's concerns building over opec-plus and their ability to reach agreement, but you're also concerned over -- you are concerned this ongoing war in gaza could run the risk of

becoming more regionalized and therefore impacting markets as well. >> yes, that is one risk we are clearly watching. for now, the conflict has been largely contained. from an outlook perspective, we expect oil prices to reach about $75 a barrel over a 12-month horizon and we expect to see u.s. growth softening in 2024. >> always great to chat with you. let's get you back to hong kong. the big focus really is on energy. >> that's right. we had the opec-plus meeting that has been delayed.

there does seem to be some questions over the amount of supply cut that should be issued into the market and the managing of prices they are. that is the opec-plus delay. we are seeing wti as well extending its drop so far as we are seeing in the u.s. inventories expanding. so that is the state of play for some of the big energy suppliers. you are seeing more losses so far coming through for the aussie session, but to note, of course, today that the volume is very thin so far that we are seeing given japan if shut for a public holiday and as well we are approaching the thanksgiving holiday for the u.s. let's look at another stock that is moving, amp. essentially what's driving that is this is a company or rather an asset manager or investment manager that has agreed to settle on a class action.

the settlement is for a total of 100 million aussie dollars subject to the finalization and execution of deed of settlement and approval by the federal court of australia, but that stock is gaining as much as 8.8% in the session. another stock we are watching that is suspended right now, but it is origin energy, and that has been halted pending an announcement. we understand we could see a delay of her proposed shareholder vote for a $12.5 billion takeover bid. shery: a little more on origin later on, but still had, the world's biggest maker of electric car batteries is said to be looking at a second listing in hong kong. details on plans later this hour, but first, as belle just told us, that origin energy deal is what we are watching. it is considering delaying brookfield's -- delaying the

vote on brookfield's takeover bid. details on that next. this is bloomberg. ♪ the chase ink business premier card is made for sam who makes, everyday products, designed smarter. genius!

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would you give yourself a root canal or run payroll? oh, run payroll. paying my team with gusto takes just a few clicks. they automatically file my taxes for me too. can i run payroll too? choose payroll without the pain. shery: oil is extending losses in the asia session. opec-plus to delaying its meeting originally set for this weekend as its africa members push back against revised output quotas. it was just a few days of a delay but we are seeing the impact on prices. su: we had a volatile session in new york and london. the concern about the delay is that there is some disagreement that may possibly cause an impasse on output cuts for next

year. drop into the bloomberg and you will see that we have had a downward decline for a while now. a lot of this has to do with the fact, the war premium on oil that push prices higher ending in october has now pretty much dissipated. in fact, there has been built up in supply both from the u.s. and europe. if we talk about what was expected, producers set to meet over the weekend to finalize output levels for 2024. now we understand that is pushed back 4 days to november 30. delegates say they are taking extra time because african producers are not happy about revised output targets. they are being pressured by saudi arabia and some of the more powerful members, from what we understand. before the meeting, there were predictions saudi members would pressure other members to join

them. instead, the delay of this important meeting, we are told, took some traders and investors by supply -- took some by surprise, to traders and investors by surprise. brent crude, which was close to $100 in october, actually fell below $80 in the latest trading session. crude oil down around 18% from its september peak. later on, the latest inventory data in the u.s., stockpiles grew to the highest levels since july, well over 8 million barrels. at the same time, we have iranian supply recovering. the supply/demand dynamic very much changing. technicals are also very

bearish, and all this puts all the more pressure on the saudi's to react. haidi: what are market analysts expecting or bracing for at this point? su: the thing they are bracing for is the possibility -- if you remember back in 2020, there was no decision coming out of opec and it caused options to fall below zero briefly. there is a concern now. you are looking at the history of when the saudi's have made a move, it is typically when oil falls into a trough. analysts remind us that while consumers may be celebrating the fact that oil prices have dropped back, providing a bit of relief, there is big concern for exports regarding the saudi's. riyadh likes to have a price closer to 100.

it is going to be a negotiation. you have the african nations that need all the income they get from oil opposing this, so again, the concern is there could possibly be some kind of impasse. meanwhile in the u.s., we have an oil spill in louisiana. occidental petroleum and five other firms have shut off offshore production because of this spill. there's a lot of oil now in the water, the equivalent of two olympic-sized swimming pools. they are calling it the worst oil spill since the deepwater horizon incident. it will be interesting to see if that impact trading in the u.s. in asia trading, we are not seeing in impact, but the bias has been on technicals lower from here. haidi: staying with energy, and oil -- origin is set to be waiting a delay on the

brookfield takeover vote. paul allen joins us now with details about this late-night two-pronged offer. paul: that's right. this deal was never going to get across the line as it stood. big funds did not like it. brookfield sweetened it to $9.53 a share, but many others thought that was still massively undervalued. the vote was today and look pretty much doomed to fail, so now we have a trading halt. that's what we definitely know. it's understood the vote would get adjourned, and again, understood that something else is potentially on the table. we just don't know what yet. shery: share prices have been sinking. what is not telling us? paul: that's interesting, isn't it? proxy votes have rolled in and looked destined to be voted down because of how vocal some of those funds have been.

we are well below that $9.53 per share offer from brookfield. the market pretty much made up its mind on this deal that is pretty much dead in the water. now the question is what to offer in its place. it is an open gas as to what price people will now put on it, what other components of a deal might be adjusted to get these funds on board. brookfield was proposing 20 -- two invest $20 million, $30 million into origin over the next decade to help it move into clean energy. the greens attacked origin shareholders for their opposition saying if you can find a better way to transition, let's hear it. shery: paul allen joining us from sydney. let's turn to china. bloomberg has learned country garden is on the country's draft

list of 50 developers eligible for financing support. charlie, tell us a little more about the latest property-boosting measures and how effective these policies can be. >> hardly a day goes by without hearing news about a new measure to boost the property market. country garden, as you just mentioned, we heard the latest on a so-called white list of 50 property developers that would be eligible for a range of financing from equity to bonds to bank loans. just last night, she, a city of 17 million people, announced they will lower the down payment ratio to 40% from 80%, basically

have the threshold. at the same time, state media reported that a standing committee of china's parliament, the national people's congress, said -- told central banks basically, banks should step up lending support for the property developer, and also banks are a -- banks should be sharing more profits with the real economy, basically saying there is room for deeper cuts. all these measures we are hearing over the past few weeks have failed to revive property demand. you may have noticed that october sales were pretty bad. inexperienced worst slump in eight years -- they experienced

the worst slump in eight years. that said, all the stimulus measures announced over the last eight months have failed to stimulate healthy demand for property. so there is a need for more measures to prop up the market because the sector is way too important for the economy. it accounts for about 20% of gdp if you include other sectors from property services to furniture. as for how effective the policies have been, there's another gauge, which is property shares. they rallied briefly on the news of the past few days, but they are still hovering at a multi-year low. the lowest in 10 years. haidi: are we expecting more support measures down the road? >> i think for policy makers, it

depends on the data. if sales continue to slump, more measures will be announced. at the same time, they have to walk a fine balance between supporting property markets and curbing a new round of speculative frenzy because the long-term strategy of beijing is to shift more focus to higher end manufacturing technology industries, which is too big at the moment and currently accounts for about 1/5 of the overall economy which is currently unsustainable. shery: you can get a roundup of all the stories you need to know to get your day going. on bloomberg daybreak: europe and you can customize your

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>> this is one of the main risks. now you know the outlook that markets are taking through the evolution of the economy. haidi: that was the european central bank vice president morning investors over being too optimistic over the economy. let's get you some of the other top stories we are following out of europe. the european prime minister jeremy hunt has announced a cut

on the tax that workers pay to fund national insurance from 12% to 10%. the plan is sparking concerns about inflation and high borrowing rates. the office for budget responsibility sees it delivering an economic boost of just under 0.3% each year from 2025 to 2029. >> we have supported families with rising bills, cut borrowing, and how -- have -- halved inflation. rather than falling as predicted, real incomes have risen. our plan for the british economy is working, but the work is not done. >> far right a dutch lawmaker says he plans to leave the government. making up the largest group in the dutch parliament, he is noted for his anti-islamic views and his victory came after a campaign that highlighted growing opposition to

immigration in the netherlands. let's take a looking at our futures opening up at the start of trading. here in europe this morning, we see europe stoxx 50 futures looking pretty flat at the moment. asian shares have been seeing that pretty muted, cautious open as we see u.s. stocks climbing. we are seeing german dax futures just up by about .1%. we are watching ftse 100 futures up by about .25 percent. socgen strategists staying flat on 2024 on i don't want you to move. i'm gonna miss you so much. you realize we'll have internet waiting for us at the new place, right? oh, we know. we just like making a scene. transferring your services has never been easier. get connected on the day of your move with the xfinity app.

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haidi: this is "daybreak asia".

annabelle: i am annabelle droulers with a check of the markets for that half an hour into the trading session for korea and had down for a public holiday, so it's pretty quiet. a couple of things. first we are watching the moves in the bond space because in the western ocean, the direction was led by treasuries, particularly the 2-year yield hitting 4.9%. treasury yields, the cash markets are closed, but we continue to what futures independent trading flat would we had the university of michigan survey telling us that americans over the coming 12 months still see inflation staying elevated, running at 4.5 percent. that reinforces the narrative that impacts have to stay higher-for-longer even the markets are pricing in cut you're seeing moves in bond yields at the shorter end of the curve. , reeve in particular, we have seen the likes of gold and other, steal for it reacting to

this -- deal, for instance, reacting to this reaction that rates will stay elevated. we are seeing more of interesting moves, through in the materials space, leaving the drop. still fairly subdued. the mcapj index is flat. let's look at where we are sitting in terms of trading volume. to reinforce how quiet the session has been the past few days. this daughter line is looking at the production for trading volumes versus what we see on the trading average. we are 30% lower than where we would typically be this point in the session. japan is closed. we are approaching the things of the day and we have been saying throughout the week, this is a range-bound, muted. traders sitting on the sidelines. not vonnie: too much activity. vonnie: i feel for you, because i see you are trying to squeeze

news out of the trading activity. we do have holidays here in the u.s. and in asia as well. let's bring in our next guest. he sees a modest upside in the dollar. mitul kotecha is head of asia fx and asia microstrategy at barclays. great to have you with us. what is going to drive the leg higher for the u.s. dollar? it's been really interesting that on the other side of the trade, we have still seen resilient emerging-market currencies. mitul: it's a very good question, of his new notwithstanding the fact that the dollar has come off very sharply in recent weeks. we expect of site in the dollar in the first quarter of next year. we highlighted the fact that the u.s. exceptionalism story is unlikely to give way anytime soon. we think the u.s. output gap will be much wider than elsewhere.

we expect the rate differential picture according to our model to show a premium for the u.s., and at the same time, we expect that disinflationary trend outside the u.s. to be more significant than what we see in the u.s. recently. . that should drive the dollar higher. after all, markets into the last few weeks were fairly long- position in the dollar. over sentiment and position indicators were very stretched. we have seen some position adjustment, profit-taking as we approach year-end. it's positive for emerging-market currencies. so it's not a huge surprise. with interesting is that this move is starting to look a little bit exhausted in terms of dollar downside. i think we are starting to see a more gradual move lower in the dollar. shery: is that also the case when rate differentials may not be as helpful for emerging-market anymore, because we have seen many of the central banks that were aggressively tightening, now going the other way around. mitul: that's right, look, where

we have seen that more pronounced is in latin america. we have seen interest rates and carry being more attractive for investors. asia has not necessarily been in that direction because rates have been relatively low. inflation was not such a major problem in this region, so the carry trade was limited. that is why the dollar reigned supreme. hard to fight against the 5% yield in the u.s.. but that is starting to turn. even in the u.s., that carry story, whether it will probably still be supportive of the dollar in the next two months, we think at the moment, we are not looking for the fed tighter anymore. where we will probably see more carey erosion is in latin america in the next few months. in asia, we have seen a couple of rate hikes to predict currencies in indonesia and philippines. . we think we're at the top of the

recycled and a lot of countries in this region. shery: indonesia, we have a rate decision as well. but before i get there, the other central bank that is not necessarily hiking rates at the moment and is actually pretty loose, is the pboc, right, but we are not seeing the downside pressure on their chinese yuan as much because of what authorities are doing. so where are we expecting this dynamic to go? mitul: i think we are already again, the move in that renminbi has been pretty sharp recently, it has appreciated. until recently, we had extremely strong dollar-cny fixings. there is still more risk of a downside in a chinese currency next year. in the near-term, yes, we may see more upside, but around these, 7.10 level, it is seen

as psychologically important. but as you said, china is one country where rates will probably go down quickly and we expect more easing to come into next few months are. we have actually put on the steepener in terms of the yield curve in china, just on the fact that we are expecting stability and growth and probably more rate cuts on the front-end of the curve. shery: do you expect then, the pessimism of a chinese assets to have peaked even more government support, also central bank support to come? mitul: look, window that china has been very -- we know china has been very underinvested in the last year, we have seen substantial outflows in terms of the net -- southbound correct flows. our estimate adjust $30 billion of outflows of equity this year. bond flows have been trickling in, but most months have been seeing outflows. we have seen a lot of underinvestment. is not clear that sentiment has

turned sufficiently to warrant an inflow. stimulus measures, the extra one trillion yuan in fiscal measures will help on the margin, it will helps blaze growth, that are looking for -- it will help stabilize growth. but hour forecast for china growth next year is 4.4% after a 5.1 percent reading this year. still some moderation. but if we see more stimulus in the next few months, we could see some return to chinese assets. but for now, we don't think enough has been put in place to warrant a substantial return of foreign capital into china. shery: thank indonesia. of course, it has been really focused on route via step -- rupiah stability. what are you expecting there? mitul: a review is that unchanged outcome today from the bank of indonesia. we don't rule out higher rates

shooter the currency, under pressure. but more recently, although it has underperformed some of the other asian currencies, it is still relatively more stable than we thought the last meeting. so we expect less concern from bank indonesia about the currency at this juncture. that should allow rates to remain on hold for now. especially when we are seeing more disinflation pressures, obviously growth concerns will still remain in place given weakness in china and expected softening growth in the next few months. again, there is little attraction to hike rates at this point, unless we see a much weaker currency performance in indonesia. shery: good to have you with us again, head of a effects in e.m. microstrategy at barclays, mitul kotecha. we have more to come. this is bloomberg. ♪

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haidi: this year's you and climate summit in the uae will be the biggest in history and the first to be held in a major petro state. the hosts say they want to bring that shuttle fuel industry into the climate fold. bloomberg originals has been taking a closer look at here is a preview. >> this is a carbon capture plant. into the fossil fuel industry's preferred method for's tackling climate change.

simply put, it removes damaging co2 from the atmosphere. but it's also highly controversial because of its popularity with fossil fuel companies. the tech is featured prominently at the annual u.n. climate convection, cop28 taking place in dubai. >> carbon capture technologies have been a tiny drop in the ocean when it comes to delivering on technologies to curb emissions globally. >> in 2022. >>, the technology captured just 0.1% of global emissions. if it were to achieve the goal of zero emissions in 2020, we need about 30 times more capacity by the end of this decade. >> renewable energy will solve all our problems. but that is not the world religion. >> the world needs infrastructure. we need new bridges, roads and buildings. those are the sectors that are known as the heart to abate sectors. >> the oil industry will bring a

climate solution, but it is the very industry that has failed to commit to actually building these projects. >> the reality is that carbon- emitting industries will take a long time to phase out. until that happens, carbon capture may be the next best option, but it needs to be deployed effectively and soon. >> subscribers can see that full report right now on the terminal end up bloomberg.com. it's also posted on the bloomberg originals youtube channel as well. check it out. chinese ev battery maker catl is said to be studying a potential second listing in hong kong. bloomberg's equity markets reporter felipe pacheco joins us now for more. what do we know. felipe: good morning. we know they are considering listing here in hong kong. the company is already trading in shenzen. and unfortunately the details are not out there yet, we didn't exactly what will be the size of the listing or the timing.

we know there is an intention. this comes after the company gave up on selling global depository receipts in switzerland. this was announced -- not announced, it wasn't reported a few months ago by the media here in asia and also in europe that there was an intention to come with an issue in europe that would be as large as 5 billion u.s. dollars, a huge amount of money. several companies were going to the swiss market to raise funds, several chinese-listed companies. this would be an option for catl. now that is not on the table anymore, and hong kong, a secondary listing here in hong kong and be more likely. haidi: so what is going on with these gdr offerings? chinese firms have increasingly turned to them. filipe: we have several deals that were priced into the land

last year. under has been an extension of a program between chinese exchanges and also london-frankfurt and zurich to allow the dual listings to happen. we saw a flurry of those issuances in 2022 mostly, but they mostly came to a halt in the first half of this year. mostly on the back of more regulation, and a tightening of approvals from beijing for all the companies that were seeking to list in switzerland. this is basically because what was known at the time is that a lot of chinese investors would be buying the shares in the land, and actually, whenever they were able to sell those stocks and basically trade for their equipment in the asian market, they were gaining with the arbitrage. . they were making money buying them cheaper and then selling them for a higher price in the chinese market. this was putting pressure in the domestic asian market, and, of course, and brought attention

and turned out to be more regulated than was expected. so there has been a tightening up of that segment of that market. as a consequence of that is the catl looking for the listing here in hong kong. shery: having catl, the world's biggest maker of ev batteries listed in hong kong, what would that mean for that market? filipe: shery, the company is huge, it's a big name. it would be meaningful. the ev sector is in focus for many different reasons at the moment. and hong kong's markets needs a boost when it comes to ipo's and big ed fields. we have had a very tough year when it comes to the amount of money raised here in hong kong. it is around 60% down compared to the same time in 2022 which was already a very, very tough year. we are and 85% drop in a constant volume of money raised

through equities, share sales here in hong kong, compared to the past 10 years. it's a very tough moment. when you talk to bankers, they say that we need to see big names going through a very good offering with good demand, good cornerstones, with a lot of trust and confidence throughout the process, and then those names need to trade well and climb on the first day of trade and sustain very good performance. if we see several of the deals in a row, maybe we will see if recovery of gov. holcomb: p.m. market. catl could definitely be one of those big names that would draw a lot of attention and interest and demand for hong kong permit when it is going to happen? that's the big question. haidi: [laughs] always. phlipi boe's, with that story. as we look ahead to the china and shenzen open, investors may finally have a reason to look forward to a year-end rally in asian stocks.

our reporter joins us now. john, if you look at this chart, is one reason. some of them are technical indicators that perhaps some of the stars starting to align. why are traders feeling optimistic? is it looking at these technicals? is that the fact that we're seeing the geopolitical tensions start to ease? >> good morning. i think you're seeing multiple reasons why people can start to be more optimistic on china markets. if you look at msci china index, it up 4% or so this month after three consecutive months of declines. one big reason would be seasonal trends in the past five years. msci china index tended to perform better during the november to january period. so if history is any guide, we might see the year-end rally extending into january next

year. and as you mentioned on the geopolitical front, seems like u.s.-china tensions are easing a little bit. earnings is another important factor why people can be more of about the market -- more upbeat about the market, earning trends are stabilizing. we finally seeing eps growth back to positive territory. and a little brokerages including ubs expect eps growth for next year. if that is true, that seems like chinese companies can perform a little bit better next year, and that would help stabilize sentiment on the whole. shery: foreign funds have continued to sell chinese stocks in november. can we expect for this week's a bit more support given we are getting more details that comes to authorities trying to support the economy, including that financing for chinese company developers? john: definitely. there is a lot of news coming out from the property front. firstly, this list of developers

that would get extra financing support from the government, which country garden and sino-ocean and others are on there. looks like the property shares will get another boost -- they have already been doing quite well this week, but we will seek closely if there is further market action. also, the city of shenzen is lowering mortgage rates for home purchase rates, for second-home buying. that will help sentiment as well. another important sector to watch would be banks, because some officials are asking banks to provide extra property financing support. well that will help developers, for sure, it will also hurt the prophets of chinese banks, which we already see their margins under pressure this year. these two sectors, would be sectors will be watching closely -- would be watched closely by

investors. shery: bloomberg's asia stocks reporter, john chen. we have more to come. this is bloomberg. ♪ i was on a work trip when the pulmonary embolism happened. but because i have 23andme, i was aware of that gene. that saved my life. hey, doc, quick question. okay? if you had to choose, would you give yourself a root canal or run payroll? run payroll, no question. you know how tough payroll can be, right?

no. we switched to gusto, and paying my team couldn't be easier. gusto gives me unlimited payroll runs, next day direct deposits, and automatically files my taxes. ooh, taxes! sounds like you know the drill. good one! can i run payroll too? sure, after this. choose payroll without the pain. that's working with gusto. shery: we are seeing continued pressure on oil prices after the opec+ meeting scheduled this weekend was delayed to

next thursday. earlier we spoke with a ceo who says saudi arabia likely once fellow opec+ members to join its output cutbacks. >> despite all the cuts, opec+ is a group is not cut much production since last year. the saudi's cut, and the russia did marginal cuts, but we had more oil from iran and from iraq and from west africa. so overall, we have not had much opec+ cut. the saudis probably want the other countries to cut as well. i think it will be a negotiation where the authorities will probably use the lollipopped cut as a potential stick if the other countries don't cut more. why i think we need a cut, we had much larger u.s. supply than expected this year. we had 1.5 million barrels a day, total liquid, compared to

last year, which is in the top three supply gross in history in the u.s. we were expecting much lower supply gross, and also a lot of -- came back and we didn't news any russian oil pretty much. we have more oil from iraq and west africa. >> what does a meaningful cut look like. there is so much geopolitical uncertainty as well. i wonder whether anyone is -- everyone is in a wait-and-see situation? >> in terms of geopolitical risk, people wait for something to happen before positioning for it because so much money has been most positioning for that before something happens. last year russia invaded ukraine and we didn't lose any oil and we got some strategic reserves released so it was a lot for the markets. since 2005, people have been positioning for war with iran

and losing money because it never happened. i think the market generally tends to discount general geopolitical risk, wait for the supply disruptions to happen and then the price moves. potentially we could have disruptions, but they haven't happened yet. we have to go back to fundamentals, looking at supply gross versus demand gross. demand is very strong so despite all the fears of really weak microeconomic outlook, demand is inspected to be at 2.3 million barrels a day. twice the average. so demand is not the issue. we still have a way to -- we still have some recovery to happen post-covid. there is still a bit more demand growth to come. but supply has been the issue, a lot more supply than expected. haidi: andurand capital management founder and ceo appear underground, speaking to bloomberg's francine lacqua. as markets get underway in

hong kong and mainland china in the next hour, development shares will be in focus. country garden and sino-ocean are included in china's draft list of 50 developers eligible for financing support. we are also watching alibaba as well, founder jack ma reversing his mind to trim his stake in his company. that's about it for ""daybreak asia"." market coverage continues and we look ahead to the start of trading in hong kong, shanghai and shenzhen, this as asian markets sea of muted start to the trading day. japan is on holiday. we are watching the legs of origin energy here in australia. this is bloomberg. ♪

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