does that create more room for the pboc to ease even further? that's the thought that is driving the markets this morning. take a look at euro stocks futures. up for tens of 1%, a little bit of that continuing into the u.s. session as well. futures up by 2/10 of 1%. tech outperformance. nasdaq futures up three tons of 1%. manus: we will debate whether tesla is like a rolling credit card for credit risk. across the rest of the markets, a 10% brutal drop. global recession fears trump the tryon -- china reopening. changes are good for the rest of the world but the oil market is under pressure. will they have an emergency opec meeting? bombs roll down in terms of yield. labor costs are revised lower to 2.5 percent. breakevens are dropping. that along with geopolitical angst drives the bond market lower. the dollar flops and we are debating that 9% drop from its peak. has it endured past the peak? good news for the chinese builders. iron ore flying higher by 1.8%. kriti: a lot to digest from around the world. let's get to reporters who have the lates

let's stay on china, consumer inflation easing as the pboc eases policy.hile, in the u.s., we have ppi data due today. and cpi next week may offer clues on what to expect from the u.s. central bank as it continues to battle price pressures. joining me now is ludovic subran , chief economist at allianz, good morning, let's start on the question of china. do you expect china to be inflationary or deflationary in 2023 for the global economy? ludovic: it's a tough choice between economics and health, like most of our countries face two years ago. i think it could be less inflationary than before because we have this easing in the making to avoid social unrest. that means fewer supply chain disruptions, and you've seen the numbers this morning, it's not too bad, so we expect china not to import too much inflation next year, that's not too bad for the world. but gdp was expected to be a 4%, you see all the support measures, it may not be enough to avoid recession in some of the manufacturing and trade columns in europe, forex apple. tom: that 4% growth out of ch

this coming after a meeting chaired by the pboc governor.ing ticket things stabilized. >> on every front but the property sector as you all know has been a crushing weight for japan's economy from starting in 2020 through 2021. because the government has made some noise about helping the property sector instead of bearing down on it and saying you better solve your debt problems. stocks have surged. they are off the highs recently. what came out of this meeting chaired by the head of the people's bank of china, an important pillar of the government are a number of things they are talking about doing. they want to help the property market restructure. they're going to guide banks to support richards and acquisitions. the banks have to be encouraged because there has been so much concerned about the quality of debt, the financial health of many of these companies. this is an important thing they are doing. they say they're going to diffuse risk and improve developers financial conditions and they are going to help meet reasonable financing nee

this comes after a meeting chaired by the pboc governor. >> what a tough couple of years for the propertyor, so what a great way to end 2022, with a government letting us know what they are going to be today and yes, this came from an announcement from the pboc, the governor chairing a meeting this afternoon, and here is what they say they would do. they will give support to property sector restructuring. this is so important. there are so many companies in depth on the verge of bankruptcy may be -- dept. and they will help developers improve. they will make sure they help to meet reasonable financing needs. that is too important. you may not get the help, but if you have a chance they will extend you a life raft and implement credential monetary policy, a broader pledge, but significantly they are going to do whatever they can with their monetary policy tools to make sure support is there. this comes after just last week was the vice premier was at a meeting where he talked about the importance of the support for the economy broadly, calling the property sector a pillar of the economy, a

but the pboc has restarted its pledged lending support facility, the psl facility, which it has basicallyn dormant for the past three years and it's increased by a massive amount over the last two months since october so they are clearly turning the ship around at a much faster pace than anyone had expected. >> that's fascinating. i wonder if that means people who are throwing in the towel on the energy, on the oil trade are throwing in the trade. can you get in a position that the stocks rebounding and that doesn't mean we have upward pressure on oil prices globally? >> that's one of the takeaways you have to start looking to high-beta plays through china. oil prices could face more over the next few months, uh i agree with you i think you're having a set-up very similar to january of 2016. when you had the shanghai accord, 10 months of no fed rate hikes and china do its stimulus through the shantytown redeve redevelopment. and we're setting up for a similar replay of that january '16 moment >> that's fascinating. one more question about the region before i move on, what about the impact

underweight of china so opening is a good sign but it is very messy and the pboc and beijing will create outcomes but it is difficult to go overweight despite the value. we would rather play european or german valuations than having china be one of the players but southeast continues to benefit the marginal investment dollar that has not gone to china over the past two years. shery: who benefits the most when it comes to china reopening? our asian equities going to outperform, especially with a very hawkish fed? >> very sympathetic to that statement. a very easy narrative but it comes to the resilient nature of the u.s. dollar. southeast asia a broad outperformer as china reopens internally. not to oversimplify but japan, australia, but against the region once dividend, rhyolite -- reliability, liquidity, but indonesia is a very good spot for that demand cycle, korea, thailand, and singapore. so everything is lining up for a good year for southeast asia but there are many moving parts. we think next year will be volatile but not as much as this year. it comes down to yield inversion, lon

when we look at this stage, we have seen lots of intervention and management by the pboc against the but against a broad trade-weighted basket which ultimately matters for the trade numbers, the export and import numbers, we have not seen authorities, nor the pboc, actually voice that much displeasure. when it comes to the trade angle, the authorities have been pretty laissez-faire, pretty hands off. i do not think there is any reason for that to change in the coming months. in china, the main concern is covid zero. the transition in leadership. those policies. i think trade has been relegated to something they would be happy to let the market work its actions over. shery: we have the reserve bank of india today. where does the indian rupee go from here? >> our expectations were a little more dovish. we are expecting 25 basis point hike. we are thinking -- i think the debate over 25 or 35 is academic. ultimately, this is going to be one of the last hikes in this part of the cycle, assuming inflation manages to stabilize. particularly with food prices looking a little less volatile fr

the pboc, with further support for the property sector. bankman-fried, extradited from the bahamas to face criminal charges over the ftx collapse. >> we have the open of the asx 200 at the start of trade, moving to the upside. we are extending the rally coming in to a second day. given the lead and we had from wall street, investors, lacking certain corporate earnings. the likes of nike among them. no fed officials speaking this week. absence of commentary on the hawkish path ahead. bhp is certainly one of them, those companies essentially moving ahead with the acquisition, bhp's largest acquisition since 2011. . we are watching bhp, as it starts to trade at the open here. in terms of other movers -- bhp, unchanged. we are seeing aussie bonds looking fairly muted in the session, as well as the aussie dollar trading flat today, after rising .4% in the prior one. taking a look at the broader market outlook, we are also checking what's happening with the yen, pulling off a little bit from the key resistance level of 130.41 it last reached bac

the pboc has kept its key lmf rate unchanged since august as officials left covid restrictions. -- liftid restrictions. global news, 24 hours a day, on air, and on bloomberg quicktake. powered by more than 2700 journalists and analysts in more than 120 countries. francine: these are some of the main movers in today's trading session. first of all, engie, a french power company. falling some 4.6%. it did see a ebitda hit from european energy measures. it did confirm guidance but energy measures will hit with the price cap. credit suisse seeing shovels with bankers leaving the investment bank, but they have a new group treasurer, and we see some of the banks trying to cover credit suisse, and pearson down .3% but one of the best performers this year as they focus on higher education online. members only twitter will restrict voting on company policy to paying blue members. this is bloomberg. ♪ francine: welcome back to the open. 30 minutes into the european trading day. here are your top stories. boj shocker, governor kuroda stuns markets by adjusting yield curve control policy, signaling

on tuesday bloomberg economist spec the pboc to lower the prime rate by 10 basis points and the boj willelease its latest policy decision ahead of japan's inflation data due on friday. haidi: we are also waiting for ratings reports. prolonged weakness in china and rising promotions from excess inventory. also looking out for numbers out of fedex. investors are keeping an eye on any gains at the company is making based on the cost reduction initiative it rolled out in september. that is a pretty busy week ahead just before the christmas break. as we head into the end of the year it has been a beautiful -- a butte -- a brutal 12 months for u.s. stocks. strata just are seeing a different story when it comes to asia. let's bring in garfield reynolds. let's start with the outlook for the u.s. hawkish pivot is a hawkish downshift. not the perfect scenario for markets. it has dried adjust talking about a profit recession going into next year. >> the difficulty has been stocks showed some resilience in the wake of the soft november cpi print and the way that and some of the other data cemented t

what will the pboc do to support going into next year?storing market confidence and getting the growth rate up to at least better than this year. haidi: there are so many uncertainties. will removing covid zero give that growth bump? knowing that the trade numbers were so low from yesterday? as well as expectations for more volatility going ahead with the uncertainty over the reopening. >> it really is that kind of story. obviously, the data we are having now is backward looking and really shows what a bleak future we have for the economy in november. it will be interesting to see really when we do see the start of a recovery. also, housing. the property market is a very important indicator of what confidence is like on the ground. our people really buying in to these support measures for the property market? a lot of cuts at play. volatility is the name of the game. it will also be important to see mid-december, december 15 is when we get the pboc's next liquidity operation. are they going to inject more liquidity? any low -- indication

time globally we have a diversions, we talk about central banks hiking this week but we also have the pbocolding or even loosening a little bit and boj on a easing path as well. kim: especially when they were used as both servers and pcs alone, i agree these were very rate sensitive things to invest in. but i think we will have a little decoupling of that largely because businesses cannot find people and technology labor, if you cannot find it, capital is what you replace it with. semiconductors are going to replace people. i think that could loosen up some of the linkage between rates, the economy and who buys chips when. sheri: we have seen central banks become the last rescuers in this global macro environment of many challenges. we have seen the boe and the fed step in in times of trouble and stress. we had an interesting report from the bank of international settlements last week pointing to the sheer scale of the fx swap markets and how it could be a blind spot in global finance. do you see this as a risk? kim: i do and i think i was an early person that was looking for where the dis

the pboc raised its holdings by two tons since november.kes it the sixth biggest central bank gold horde in the world. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. rish. rishaad: let's get you to some breaking news coming out of india and it is the ntpc preparing for a major push into nuclear power by 2024 -- 2040. this is to aid in the country's push away from coal and try to accelerate towards getting towards a net zero target for emissions by 2070. this is all coming from people familiar with these plans. india currently has 22 operational reactors. we are talking about a potential quadrupling of that power output. that is a look at that breaking story and what do we have, has? haslinda: nuclear back in focus as they look to decarbonize. development under the twitter front. bloomberg has learned that elon musk's bankers have considered providing new margin loans from tesla stock. sources say the goal wou

the pboc injected 94 billion dollars on thursday via is one year medium-term lending facility.ing it the first net injection of cash since march. china's closely watched economic policy meeting is set to be back on schedule for thursday's start. sources tell us the visual is not -- even as covenant actions arise. bloomberg had already reported the meeting would be delayed due to the latest virus surge. officials are at odds with the bankruptcy lawyer. the american legal team has refused to give liquidators appointed by a bohemian court access to ftx computer systems. they claim security's regulators cannot be trusted. each side has previously argued it should be leading the hunt for ftx assets to repay creditors. global news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. david: let's take a half a step back. we are getting more details on how the regulars were ready -- regulators were able to build a case against sam bankman-fried in a very short amount of time. was this actually looking at the details? >>

and i wonder if that is contributing to the lag for the pboc. it is something you cannot predict because of these false starts in china. alix: great to see you both. coming up, if china's economy is this week, what does that mean for european growth? germany is heavily dependent on exports to china. we will talk more about that with anna titareva. this is bloomberg. ♪ guy: europe has a number of achilles heels. very you can have two, but that is maybe the limit -- maybe you can have two, but that is maybe the limit. one for germany has been exposure to russian gas, the second exposure to the chinese economy. we are now seeing portrayed data out of china, both import and export data. what does this tell us about where the european economy is going and how the ecb should be thinking about policy going forward? anna titareva joining us to discuss. good afternoon. what is the read across from the chinese trade data to european data? eddie: in general -- anna: in general, china reopening is a mixed blessing. in normal times, we want strong chinese gr

more monetary stimulus coming out of the pboc. stocks could much doing nothing, bloomberg dollar index is down, there is a safe haven in the treasury market, 30 year yield below 3.5%, crude you would think it would be a boost. it is down again almost 3%. we will try to work all this out . when it comes to the s&p bank of america has a target that is 50 points shy of where we are. we spoke with someone earlier about where the opportunities in equities like. -- lay. >> do not index, outdex. the megacap stocks are value cap -- traps. by the rest of the s&p, i think not having exposure to stocks and sticking all your money in bonds and cash is a mistake at this point. >> joining us to see where the s&p sits on a technical level is bloomberg's just. i always go to the technical levels we are below the 200 day moving average and below the 100 day. where are we? >> stocks are stabilizing a bit today the s&p 500 is below its october. it has broken away from the uptrend, it makes it tricky to see where this. it is below the downtrend since

the positive story that everybody will want to trade, but what does that mean for the trade and the pbocd: there is plenty more ahead. this is bloomberg. ♪ david: two things happening. getting declines in hong kong, not so much in china. the broader story is what happened in wall street and the declines we had among growth stocks. nasdaq futures slightly higher, but not convincingly enough. china might lift quarantine rules. rishaad: let's have a look at some of these other asset classes in play here as well. what do we have? nasdaq futures. david: global macro movers, yields on the way up, there was plenty more ahead. stay with us. this is bloomberg. ♪ >> it is almost 11:00 a.m. in singapore and shanghai. rishaad: let's have a look at our top stories. the latest economic data has fears of a more aggressive that moves next year. china sent to cut quarantine requirements for overseas travelers. haslinda: ed is looking like a gloomy end to the week. asia tracking losses on the back of strong eco-data. we have s&p down 1.5. we are seeing similar losses in asia. in negative territory. we hav

also the pboc set to announce as we expect those interest rate decisions.ina open is next. this is bloomberg. ♪ hi, i'm jason and i've lost 202 pounds on golo. being a veteran, the transition from the military into civilian life causes a lot of stress. i ate a lot for stress. golo and release has helped me with managing that stress and allowing me to focus on losing weight. for anyone struggling with weight and stress-related weight gain, i recommend golo to you. this is a real thing. this is not a hoax. you follow the plan, you'll lose weight. >> good morning.

the pboc is the one central bank we are expecting to buck the trend and probably keep the one-year year plenty of data out of china, the november activity numbers are not expected to look that great. haidi: there is a few key data points. the domestic activity indicators are expecting the slowing us the board, especially when it comes to more weakness. looking ahead, we are focusing on the economic work conference to give us an indication of what policy will be the gdp and budget numbers, take a look at u.s. futures numbers, a pivotal week with the 24 hours on wednesday and thursday of those three central-bank decisions. that is it for daybreak: asia. market coverage continues. this is bloomberg. ♪ \ it's official, america. xfinity mobile is the fastest mobile service. and gives you unmatched savings with the best price for two lines of unlimited. only $30 a line per month. that means you could save hundreds a year over t-mobile, at&t and verizon. the fastest mobile service and major savings? can't argue with the facts. no wonder xfinity mobile is one of the fastest growing mobile servi

we might get a stronger dollar if the fed continues to hike and the pboc is going in a completely differentlook at 2023, it is very different from this year. this year, the chinese economy underperformed. there were a lot of lockdowns, the u.s. was relatively resilient, but next year we are expecting the fed to prevent. to stop liking after january, and inflation is coming down. the u.s. economy will slow, while in china it is the beginning of a strong recovery after almost two or three years due to covid constraints and housing issues. the economic policy will support the strength of the renminbi. shery: good to have you with us. coming up next, foreign investors have slashed their holdings of china's onshore bonds for a 10th straight month. we have the market open in hong kong and the mainland next. this is bloomberg. ♪ shery: a ceo says european banks should exercise financial prudence while assessing the full impact of inflation and the energy crisis. we spoke exclusively to him on the sidelines of the international economic forum of the americas. >> the financial sector is in good shap

the data might overtime have predicted properties as, well depending on the advanced nature of the pboc's big data analytic skillset. this is proving to be a very useful way for me personally to think about how the united states and china systems are different. on the outside edge of digital legibility, is respect for additional financial privacy, which is, how i would say, the clocks about the u.s. innovation system works. economic actors work together. i personally envision, just according to my research, the united states innovation system will be a lot more productive if the regulations first are clear. the second, the government is cracking down or limiting innovative actors, essentially doing their job or connecting their businesses. >> we are making progress on bipartisan stablecoin. legislation, which is encouraging. do you think it is necessary, just to really throw down to this point, for there to be a u.s. cbdc for us to outcompete with the chinese communist party is trying to do, by creating alternative financial payment system of digital currency? >> i do not think it is a ne

economist up and calling for because it didn't matter how much stimulus, how many interest rates to pboconey at throughout the financial system, that wouldn't work if you had a closed economy and people weren't keen to borrow or invest in the economy. what we do need to signs of whether that's working. we get a dataset from china for the month of november. it's a set of data that has been overtaken by events. you had a guest to earlier saying that it's expected to be weak, but it's also expected to be the bottom. let's see if that goes forward. that will be the catalyst that markets this. shery: a preview of what to watch in the chinese markets as we head towards that economic data dump from beijing. that's it from daybreak asia were markets coverage continues as we look ahead to the start of trade and hong kong, shanghai and shenzhen. standby for bloomberg markets: china open. this is bloomberg. ♪ >> good

but anything is possible and certainly the currency is in control of the pboc in china.it there. paul: all right. head of equity research for asia at ubp. let's get back to annabelle for what is moving. what are you watching? annabelle: just discussing what you had with the guest around the pivot out of covid zero in china and how tough the road is going to be ahead. one of the companies feeling the effects is tesla, because were told by sources it is going to cut production edits shanghai factory. so people familiar with the matter are saying it could trim production by 20% from last month. we have seen it recently cutting prices and offering incentives to try to lower in buyers in china. this is the effect we are seeing for the biggest supplies in asia. you can see those are broadly in the red. let's change because we are focusing in on the sector in the energy space. given we are still seeing wti trading below the $80 barrel level, in terms of what is driving that, it is down to the broader collapse we are seeing across equity markets and the sentiment around the fed,