i also want to go over u.b.s. we're going to be speaking with the c.e.o. of u.b.s.andout quarter for the company. the best income since the financial crisis. joining their wall street peers when it comes to wealth investment banking earnings. we had a wealth managements division that brought in $18.8 billion of net generating assets. manus cranny spoke with the u.b.s. ralph hamers on the results. take a listen. >> we have -- >> 2% for the last quarter a year ago. with that, our profit before tax is up to two point -- 2.9 billion. the strategy is paying off. the momentum of the market is still there as well. >> are the clients still risk on? >>

coming up, more of our interview with u.b.s. this is bloomberg. tom: let's get to u.b.s. now reporting profit that soared past estimates. we'll speak to the c.e.o. >> once i can see risk on, the investor sentiment is a little bit -- around inflation numbers that are coming up and they are seeking advice as to how to invest well against upcoming inflation. >> where do you see inflation? next year seems to be the consensus. do you agree? >> yes. the supply chain hiccups that we see. a bit of for example in the labor markets that we see as well. we expect it to move away from good to services. that should help lift the tension on some of these as well. and that moment we also feel that the supply chain is also up and running again, demand will be lower for those good and hopefully we'll get more balanced situation and then the inflation will come down. >> to china, what we're trying to glean from leaders like you, the evergrand exposure. you told that to the market. i want to get a sense from you, what passed in china and the reorchestration with the economy. >> they just an

energy which was upgraded at u.b.s. morgan stanley but both banks trimmed their price target u.b.s. saying the planned stinnes spinoff of its retail unit from coal assets won't provide significant capacity for growth for either businesses and evolution mining is on watch as well. the stock was raised to overweight at j.p. morgan ahead of its production update. the miner cutting its gold output forecast and cost guidance for next year. banks also on watch after regulators raised lone requirements to address risks in the housing market as home prices have been surging ahmed this ultra low interest rate environment. r.b.c. saying this move is happening sooner than expected, sherri and that should temper credit growth with more macro measures to follow if that does fail to happen. shery. shery: and coming up in the next hour, we'll get more insight on markets from u.v.p. head of equity research from asia, karen calder. that's it for "daybreak: asia." "daybreak: australia" is done but "daybreak: asia" is next. we have the au

u.b.s. called this the tantrum in asian assets.ch markets will get hit the hardest if yields continue to rise from here and what level does it become really counterproductive? emily: yeah, yields have been a big focus of ours and we actually reupped a study that we did a few months ago when we were in this situation of rising treasury yields once before. in general we find a 50 basis point move higher in u.s. yields can bring substantial for emerging markets on the local debt side. those impacted are mexico, turkey and indonesia, markets that have a lot of foreign participation and also have some other idiosyncratic issues that make them more vulnerable in risk high times. across the board, we see this isn't a positive for e.m. the move in treasuries, up to 2% would be pretty extreme, we are looking in the medium term for a little bit, but not quite reflective of a tantrum just yet, given there are a lot of differences this time around when we compare to the 2013 tantrum. haidi: you have more indo sin accuratic risks like evergrand

i'm getting that that is sloppy reporting, because there is u.b.s.labs says no material supply chain. we may laugh about that, but they have a lot of smart people there, and they're saying that's not a fact >> we'll keep an eye on it there's a lot of stories in autos today. tesla rising prices on both the 3 and the y. in fact you'll pay more for a 3 now by about 13% than you did in q1 >> yeah. >> also the gm investor day, which we'll watch. >> look at housing people are paying a quarter more for housing than last year i think it's a more reasonability price. i went to look at trucks this weekend. $60,000 for an f-150 that's five years old. i mean, that's crazy this is a message to farley. i don't care, beg, borrow and steal, get the semis you've got to get more mexico, tight at a drum because of the semiconductors. david, we know that these issues keep popping up, yet are we going to be talking about this next year because nothing is being done >> i don't know. from what you have told us, no, we're not most likely going to be talking about this, beca