the rba boosts by a quarter of a percentage point.ent biden threatens to impose more levies on oil firm'' record profits. higher prices drive aramco to bumper profits. credit suisse chairman axel lehmann tells bloomberg that the beleaguered bank is not open to take over discussions. >> we are going to thrive again. we do not have any takeover discussions at that point, because we believe we can. dani: the central bank, the fed does not have to move slower, but it can afford to move slower. that is what tatjana greil castro from muzinich and co. just told us, which makes sense for the markets to pricing in a slower pace of rate hikes. but even 50 basis points is still a jumbo rate hike. even so, we are seeing yields move slightly lower this morning after they spiked around 1.1% yesterday. we had a program that came through the u.s. 10 year yield, but now we are seeing the asia session taking advantage of that. we are also looking at dollar weakness this morning, down 0.5%. this is gearing up for a fed rate decision, but we also have jo

yvonne: so we are thinking a slowly pace for -- slower pace for rba. are we going to see some sort of signal to a slower future pace of hikes? powell might not be committal when it comes to talking about the terminal rate at 5%. when it comes to the china covid story, that is one thing we are watching out for. one of many things that is weighing on sentiment, covid cases were back to around three months highs around 2000 or more cases. shanghai disneyland on lockdown, and a flare up of cases once again. one question still lingering on when they will start relaxing. helen said it might be sooner than you think. rishaad: against a backdrop of people now trying to look beyond covid zero, what earnings will be like. that has perhaps hastened the decoupling of china from the rest of the world. that's what we have with the pmi update, better than expected but still showing a third month of contraction essentially. this is something that perhaps at the same time is heating up the economy and subduing inflation. david: more than 10%, coming in higher than fore

haidi: take a look at the rba statement, this comes after we saw the 25 basis point i from the rba thisxpectations looking like anything bigger than that in meetings to come will be a tough ask. we seeing in its monetary policy statement they see the wage index rising to 3% in december, talking about resuming outsized hikes were positive needed. saying this is not a preset path when it comes to where the central bank goes in its inflation five. unemployment being seen it 3.25%, 4.25% by the time of december 2024 based on the cash rate easing back to 3.9% in december. rba says which price index shrinking. 2024 cpi, this is key, up 4.25% by december of next year. the stickier inflation level is still being seen, cpi at 3.25% for december 2023, that also being revised. that fits in with the broader outlook for weaker growth, higher unemployment. looking like it is close to the end of the rate hike cycle or at least the end of these outsized moves. annabelle: just as were mentioning there, rba setting a very high bar for anything beyond a 25 basis point hike in the months ahead, and we saw

we've been talking about the fed to, the rba, seeming to have more cushioning as one of the few centralworld that could avoid a recession next year. the latest data suggesting that perhaps, one person said the economy can orchestrate a soft landing. >> so important for economies trying to maneuver that outlook, right? let's get to vonnie quinn with the first word headlines. >> thank you. officials adjusting covid restrictions at an apple factory in china, lifting a lockdown. the shift comes after beijing reinforced in order for authorities to contain the virus . bloomberg has learned the biden administration may label the wegner group a foreign terrorist organization. the leader of the group is a top supporter of vladimir putin and the war in ukraine. sources say the move would allow prosecution of the private military firms members. sources say argentina central bank expects to keep its key interest rate unchanged at 75% until next year. we are told that it is seeing slower prices and is prepared to hold. the estimate suggests monthly inflation could be 5.5%, down from 6.3% in october.

continuing to watch with the rba has to say about the future path of rate hikes per it the aussie dollar is a little weaker under $.65 and seeing the dollar rising ahead of the key cpi report as we see broader equities, bitcoin and other resets -- assets, falling. shery: we are expecting the u.s. cpi numbers with core cpi numbers at the highest in 40 years. that number will be taken seriously when it comes out thursday. we are seeing a little bit of upside for u.s. futures in the asian trading session after the s&p 500 lost ground. every sector on the s&p 500 was down today. not surprising giving anxiety over the cpi numbers. not so much of a big red wave we were expecting from the midterms. investors trying to digest that bit disappointing earnings and crypto meltdown. the 10 year yield around 4%. oil under pressure. we continue to see pressure in the asian session below $86 a barrel. u.s. inventories rising not to mention renewed lockdowns in china not helping sentiment when it comes to the oil space. not to mention corporate stories playing into the markets with meta cutting about 11,

the case of the rba, meaning with some announcements so that the market gets ready.though when comparing rba and boj is that indicates a boj, they are exposed to expensive, high-priced egb's, so they will incur losses. it is harder for the boj to move out of this low rate environment. it does need a lot of preparation. it cannot happen all of a sudden. yvonne: you mentioned lower rates. i am wondering when it comes to china, we are hoping or anticipating some sort of rrr cut in the next couple of days after been at the cabinet meeting. do you wonder if this is going to be the last four the start of more monetary easing in china to try to put up for an growth against what we have been seeing, record number of cases when it comes to covid? >> i would say it is the start. i do not think we cut in a very dramatic way. it does bear more emphasis that china's stock was easing. the many ways in which we are seeing banks being asked to lend to real estate developers, we have seen 160 billion u.s. dollars equivalent, and that is a lot of money being spent by banks to save dev

the rba does not have the same inflation problem that the federal reserve does. staying on this path. there are a couple of people, bill evans says they are going to do 50 this time because they should have done it last time and now they can prove the inflation credibility, again with the market thanks it will get up to on the terminal rate for the key rate, it seems to me they have the door open, if they open the door to 50, no one will be shocked and then, the guidance after the meeting that comes out in the policy statement and a couple of days from now when they have the financial stability report, whatever phil lowe says about the road ahead, the other thing is looking at housing prices. how sensitive are they? the mortgage rates are up. they are fully month after month. is that something that might slow them down? that's the key question. we will not find that out in the next hour. haslinda: the fed 75, which means yields will still hold lower than the u.s.. reporter: good point. presumably because they have not gotten out of the range, they are not worried

we have the rba minutes to look forward to as well as processing. oscillating expectations when it comes to the fed pivot as well. we heard lael brainard's comments. nikkei futures up by about .2%. shery: take a look at how u.s. futures are trading. we are seeing a little bit of upside. we have seen swings between gains and losses throughout the new york session. lael brainard's comments helped improve sentiment a little but this comes off of kryst for waller's akos -- christopher waller's hawkish comments. extending the rally for a third day given geopolitical tensions have been eased between president biden and xi jinping. crude prices still under pressure. around the $85 a barrel level. haidi: you and i here in singapore on day one of the bloomberg news economy forum. this was really an event to hopefully provide solutions for some of the most pressing challenges the modern world faces. we feel the list gets longer. when we were here during the very first couple of forums talking about the pre-pandemic challenges. now post-pandemic we are still d

the rba's the hurdle pretty high. in not taking it 50 basis points. the rate is now 2.5%. production is 3.6% in march of next year. the next rise of 25 basis points in december, two more in february and march. haslinda: as you talk to your clients, the board, what is top of mind? is it still inflation, the fed? as a global economy -- is it the global economy? >> the exchange rate, the u.s. rate, where it sits versus the aussie dollar, that is very much top of mind for organizations with international enterprises. inflation, huge. it is interesting, watching the markets themselves, they are finding it pretty challenging us to where that sits. haslinda:haslinda: you've had phenomenal growth in a very short time here with the question now is how do you fulfill the ambitions and the goals of the clients? >> great question. it's interesting, because our business that has just finished its first full financial year. what is interesting is we have been able to achieve that in a period of time starting from zero. the way you think about it is the business itself started from zero,

trades to go with the "fast money" podcast catch us any time, any way follow today on your favorite 'rbaee ckig aerhis. esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential. >>> welcome back another check on markets today stocks taking a breather from last week's big rally. the dow dropping 200 points and the nasdaq dropping nearly a percent. shares of hasbro dropping 2% after a bearish note from bank of america the stock's worst day since marchof 2020. >>> turning to the big meeting that took place in bali this morning, president biden and chinese president xi met for three hours and discussed everything from nuclear weapons in ukraine to taiwan's independence the two downplaying tensions and pledging

of market reaction we see so far, a move in bond yields telling us that traders are still seeing the rbaeights in the -- rate hikes in the months ahead. westpac would have to see a notable surprise on the weak side for that to ramp up so this is a market that is pretty much trading with move-in yields and asx 200 moving higher. let's look at the broader market outlook today. japan in the red at the start of trade. new zealand's holding onto gains. we are not seeing korea because trading starts in 30 minutes. shery: let's get to vonnie quinn. >> ftx and some celebrity backers are being sued by investors for a class-action. in a complete -- complaint, they allege the crib so -- the crypto chain targeted people using celebrities. and moderating interest rates to 50 basis points next month and hiking will stay until 2023. christopher waller said he is open to a sequence of half point increases and the final decision depends on data. >> looking forward to the december meeting, data the last few weeks has been more comfortable, considering stepping down to a 50 basis point hike. >> a successfu

higher for yields as well, given we had goldman sachs saying we had the inflation overhang plus the rbato a smaller rate of hikes. goldman saying it will reach 4.1%, continuing to watch what is happening with brent crude, it's weaker. that is down to the expectations of china's reopening. we really have not seen any sort of major pivot away from covid zero from officials. haidi: a lot of rumor and hope and prayers. any stock rallies we see, given that you are usually in hong kong we will get to that in a moment. is it the still underlying expectation that we will see the fed pivot, that's why we are seeing the clinging to optimism? >> scratching my head at trying to work out where this fed pivot is coming from. i think it was proven right last week with jay powell's apparent pivot, then coming back and saying, maybe we will not go and do that. some say he is clever but to my mind he looks as if he is uncertain and doesn't know what to do. what we know as inflation is going up. it may be coming down periodically. what it is going up. we know the fed are unable to control it in a volker f

kiwi stocks on the back foot as we get into rba decision day. consensus is we could get that jumbo size 75 basis point hike from the rbnz, suggesting credibility is on the line in the fight against inflation. nikkei futures, given it is a public holiday in japan, no cash trading there. we are watching dollar-yen at the moment. vonnie: u.s. equity index futures are trying to decide on a direction, pivoting between unchanged and little down. we had anemic volume in the u.s. yesterday but we had all the major indices up more than 1%. that snapped a seventh session streak of sub one-percent moves. it's not something we have been used to since the cpi data. waiting on the direction for the equity index futures but the s&p 500 finished the session above -- have a look at new york crude, up $.18. we look like we have the european union softening sanctions, so we will keep an eye on fossil fuels. bitcoin counting back from a session low as the judge ruled the identity of major ftx creditors can remain secret. a substantial amount of ftx assets are missi

the rba will probably only do 25. that would create excitement in the foreign change market.y go through with 75 or not, even 50 would be a sizable rate hike, as you mentioned. either way, the kiwi dollar would be a bit of an outperformer on a relative basis because new zealand is still pushing hard with a rate hike when some other countries are showing signs they are getting close to the end or ready to be a bit softer on the rate hike front. certainly the new zealand dollar stands out for the highest amount of attention this week. if they go 75 basis points, it comes with a hawkish outlook. we could see significant moves in the foreign exchange market this week. rishaad: tell me, how far is the softer than anticipated trade data out of south korea playing into the narrative today? mark: it was certainly a factor. over the weekend, there wasn't really anything substantial that came out on the risk from. what we've had this morning is some negative news from china on lockdowns and also some week south korean exports as well. you put those together and it gives people a reason

you are seeing the likes of the rba, the boc, the bank of england last week start to say we have to start focusing on the slowdown in our economies instead of this fighting inflation and breaking away from the fed. david: today is, what, we will get fx reserves out of hong kong and mainland china. we are going to get trade numbers at any point. the inflation print out of the mainland midweek. you also have inflation data coming out of the u.s. economy. rishaad: certainly we are going to watch out for that. that is something the fed will be looking at very deeply. but let's get to the first word news. meta reportedly played into begin layoffs that will affect thousands of workers. the wall street journal reporting job cuts will be announced wednesday with employees told to cancel non-essential travel. it comes as meta struggles with growing losses while developing its metaverse business. after laying off about half the company friday, twitter is now asking dozens of workers to come back. they say some were laid off as a mistake while others were let go before management realized they were

but the u.k., europe, the rba, even canada, they are looking at a more complicated set up where theyre willing to bring the growth question in. we are at the verge. partially caused by would central banks are doing. the general thesis has been, you want to be willing to risk a severe economic slowdown in order to bring inflation down. we are now in where there are signs in some places that inflation could be cooling. there is the potential for base effects as we go into the new year. with all that, we have central banks starting to become, you know, less of a pack than they were for most of this year. so, that helps explain some of the signs of an ace -- of a nascent, maybe not a rally, but a relief to the endless drop, as u.s. yields continue, mostly, to grind higher in response to the federal chairman towels -- powell's hawkish stance last week. kathleen: four top fed officials friday and go to him almost to a word. when this fed pack of speakers is out this week, i am sure we will get this reinforced. you got the jobs report. we know what fed officials are saying. they know that m

. ♪ haidi: we are waiting for them midweek session across asia and the count on to the effect, the rbaout of the way, sidney stocks are trading higher and new zealand is under pressure. questions about what the rbnz can do about the record low and can do- [announcer] imagine and having fuller, thicker, more voluminous hair instantly. all it takes is just one session at hairclub. introducing xtrands. xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. they're personalized to match your own natural hair color and texture, so they'll blend right in for a natural, effortless look. call in the next five minutes and when you buy 500 strands, you get 500 strands free. call right now. (upbeat music) vonnie: this is "daybreak: asia." china's government will strive for a better economic outcome with stable, healthy, and sustainable development. the state broadcaster said china is rebounding thanks to supportive policies. factory and services activity contracted in october with signs that things could worsen in the coming months as beijing sticks with strict

. >>> still to come, much more on china covid lockdowns and how 'rba in tont to play the secr.g back to the protests in china over the zero covid policy and how the chinese government may respond will they truly loosen restrictions if so, how long would that process take first, what you saw over the weekend and what you thought about that. >> it was extraordinary. you cannot overstate the degree of personal risk that all of these individuals are taking this is a surveillance state, a police state and the fact they have been pushed so far they are willing to risk so much is really, really telling what i thought was super interesting was, you know, the trigger most recently is what happened in urumqi this building where ten people died, nine injured because of this fire. the reports are that the people couldn't get out because of covid lockdowns. that the doors were actually chained shut or barricaded the chinese government denies that however, it's clear from the reaction from the people you see on the ground that they think actually that was quite possible if not probable. even