Transcripts For BLOOMBERG Bloomberg 20240703

Shery you are watching daybreak asia coming live from hong kong that sydney. Annabelle were couni down to asias major market opens. Pa top stories this hour, asian shares falling as hawkish fred messaging intensifies. The trade the yen trading closer to 150. Two the dollar j. P. Morgans ceo lays out his geopolitical risks in our exclusive interview. If you go to 7 the answer is yes, are there factors that will drive it higher than where it is today, talking about the 10 year bond, now, yes. Paul investors are looking past teslas thirdquarter delivery miss as analysts maintain a bullish outlook. Anabelle thanks, paul. We are about to open. We will keep watching that as we get into the final, first few moments of trading. The direction of equities, are going to be determined by what happens in the bond space. In wall street session we will get to the details. Still, this selloff really starting to intensify here. Equities on course for some sort of correction. The 10 year yield trading at a level we have not seen since 2011. More weakness coming through into the aussie dollar as well against the greenback. The Dollar Strength is another key story aussie stocks are coming online for the downside. Futures have been indicating for a drop of 1. 3 . A staggered start. We will see, what will come online as we get underway. Lets change on. It is not just the focus on bond yields. We have been tracking that closely this morning, also taking a look at what is happening in japan. We have a big 10 year bond auction coming up later. This will be closely watched given we have a lot of moves in yields. The jgb is pushing high with expectation that the boj is going to be forced to shift sooner than later. The want to watch, very closely one of the indicators we can track as to whether the bond auction was carried out in a wellfunctioning manner, but it is one that is creeping higher. It tells us perhaps that Market Participants are a bit under cited on the outlook. Looking at japanese yen, we are very, very close to that 150 level. Shery that global bond rout setting the tone for markets and were equities go. Were equities go. Where equities go. We had the s p 500 recouping most of its losses during the last few minutes of the trading session in new york. But not enough. We ended the day unchanged. It was interesting that the nasdaq 100 outperformed. We are talking about gains from the likes of make caps like microsoft, nvidia and apple. This, coming at a time when the treasury rout resumed in the 10 year yield touching the 1. 470 level, since the First Time Since 2007. The 30 year yield at the highest level since 2010. We had positive data. We had u. S. Factory output. It was a contraction but it was the least contraction in a year. That reinforced the fed narrative of higher for longer. Not to mention we got more hawkish comments from fed officials. That did not help when it came to treasury yields shooting higher. We had been watching what all of that means for the dollar. Stronger pressure on the commodity space, and wti at the moment trading below the 90 barrel level. Paul j. P. Morgan ceo is warning clients and investors to prepare for a worstcase scenario. Interest rates at 7 . He spoke to us exclusively at the j. P. Morgan tech stars Leadership Forum in london. Can it go to 7 . The answer is yes. Are there factors that will drive it higher than where it is today . Im talking about the 10 year bond now, yes. Is supply and demand yes . Be prepared for it. Then the worst case is stagflation. Higher rates because he of a booming economy, there is a lot of competition for capital. Emily what are the ripple effects, 7 rates on business and on growth . I am not worried about j. P. Morgan. We are prepared. We can handle 7 . We can handle 2 . Emily 8 . We can handle that too. Risk management is not the same as guessing the future. Were looking at the range of potential outcomes. If we can handle this, we dont expect it, we can handle and between. If you can bet your company on one outcome, all companies do that. Every. Company has different exposures input and output prices. Some industries dont matter. Your business is different. But, i think we dont know the effects of these things in the economy. We may have a soft landing. We may have a mild recession, harder recession. Obviously there are potential bid outcomes. The worst will be economically, stagflation. You have low growth, higher Interest Rates. If that happens you will see a lot of people struggling. Emily regulators proposed new capital rules that will make it harder for americans to get a mortgage. When you look across the firm what businesses will have the biggest impact . When you look at the specifics, the old rules about mortgages and business loans, in general, what i dont like about it, it punishes diversification operating risk capital. Diversification is one of the true free lunches for a bank that protects it. I dont understand why they do that. We are going to be responding hopefully it will be modified and thoughtfully done for international purposes. Mostly, america has the best Financial System rules ever seen. That includes hedge funds, private equity, private capital. I say private equity hedge are dancing in the streets, this time they are being public about it. This will push the banking system. If that is what regulators want, so be it. Is that good for america . I dont know. Paul j. P. Morgans Ceo Jamie Dimon speaking to emily chang on the sidelines of the banks textile or leadership text our Leadership Forum. Lets bring in the Financial Advisor and it at ubs. I want to get some of your views on what jamie dimon was saying, about the potential risks and possibility that rates of 7 could happen. We have the fed on the other hand suggesting they are close to done. Where do you see rates moving from here . We see rates are going to go up higher. The fed is very adamant about keeping inflation under control. That has been the story this whole year and last year. As long as we are still far that target, the fed is going to keep rates high and we are expecting higher rates for longer. That could be good for the u. S. Dollar but more caution on the equity markets, and also looking into may be if you have a lot of cash on the side, treasuries, maybe higher rate bonds. Paul we did see bond selling off. It was a rough day for stocks, after a. Rough month devaluations for equities look stretched, do think there could be more declines to come. Certainly. There is that possibility. Usually in a good year like this where we had significant returns and equities, usually the Fourth Quarter ends pretty well. How much better . Were down this whole month. Were cooling down from the summer throughout the year which highs in july. I think we have to be cautious from here with that in mind that rates could go up a bit more. Butthik this is just a path to normalization. Were getting to a normalization phase where even the feds Balance Sheets are going to start to normalize. So, we are not complet underweight in stocks. It is important at this point to maintaidivrsified portfolio , to continue to stay with stocks but at enough bonds to youfoos when theres opportunities. Shery does normalization come with a stronger dollar . We think the dollars definitely going to be holding up because of the rates. But we dont want to focus too much on any currency. We would like to focus more on a diversified portfolio and locking in some of the yield when there is higher rates. Shery how do you factor in a stronger dollar when making Investment Decisions across equity markets, because of the pressure that some of the margins of this business may feel, especially if they are more exposed overseas. Absolutely. The u. S. Compared to the overseas, the u. S. , the valuations are high. Europe, china emerging markets are lower. This is a good time if you are not looking at currency but investing in other markets. It does not have to be specifically china. Investors are concerned about geopolitical tensions, property prices. So, looking outside of the u. S. And investing outside may be good options. Paul xi, i just want to talk a little bit about china as well. Weve got china shares looking undervalued at the moment. Of course, the difficulties in china are publicized. It is a huge market. At what point did they get so cheap that they are irresistible regardless of any risk . China has always been on top of the investors minds. But, i think investors are still cautious because of the geopolitical tensions and also the property crisis did not resolve anything. This is the golden week in china. They are seeing a lot of stimulus in tourism, also if you look at property, hopefully there will be demand in property in china and more moderation in property prices. So, i think china is still most investors are still cautious. If you want to invest in china, it will be a longerterm play. But with the Current Situation i think a lot of investors are cautious and may be prefer to stay within more developed markets, as well as locking in more attractive deals. Shery xi qiao, from ubs, great to have you with us. We have breaking news out of washington. The Florida Republican matt gaetz has moved to formally remove House Speaker Kevin Mccarthy as speaker. He has already said on the weekend he will file a motion to vacate the chair this week. He will be seizing on the parliamentary process that has not resulted in a speaker removal vote since 1910. This, coming after the u. S. Narrowly avoided a Government Shutdown with Speaker Mccarthy calling the bluff of hardline republicans and pushing that lastminute compromise, temporary spending bill. Which will keep the government running until november 17. We will continue to watch how this proceeds as the Florida Republican, matt gaetz has moved to formally remove mccarthy a speaker. We have thought perhaps he could get some democratic votes to keep him in power but, this would actually mean lots of changes are on the table for congress and the congressional agenda, should this happen. Coming up, more from our exclusive interview with the j. P. Morgan ceo, jamie dimon. Here why he expects ai to dramatically improve workers lives, even if it eliminates some jobs. First we will get the outlook for Australia Central Bank after todays likely hold on their new governor Michelle Bullock. This is bloomberg. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Paul Australia Central Bank makes its first rate call under the new governor Michelle Bullock most expect it not to change for more on this lets bring in our economics reporter. A new governor, but is anything likely to change, what are investors looking out for . We are expecting a hawkish halt, Interest Rates at 4. 1 . But a signal that rates will be tighten further, because inflation still remains a concern. So, i think Michelle Bullock will continue to say that and that part of the statement will likely be the same. But, this will be the first time that michelle is communicating to the broader public as governor. I think everyone will keep a very close eye for any change anywhere. It will be very closely watched. Shery i was going to ask, how much insight do we have until what into what Michelle Bullock is thinking right now, especially when it comes to her Top Priorities of the job . She has spoken about inflation as one of her biggest priorities. So, we had monthly inflation indicators which came in at 5. 2 , an acceleration from the high we solemnly the prior month. Also, an acceleration after two or three months of cooling down. I was driven by oil prices. That is a concern for michelle. That will be a big priority for her. Also she was on the same page with her predecessor about engineering a soft landing. So, it is basically this path that they want to take about cooling down inflation pressures but also making sure that the economy does not slip into a recession. The other major priority that michelle has is implementing the recommendations of the rba review, which has recommended creating a new Monetary Policy board. Doing more press conferences and reducing the number of board meetings. Paul one thing that has not changed his house prices, historically very high and australia. A lot of people are carrying big mortgages as well. How much of this is a concern . It is a concern. In one way it is positive for Wealth Effects that house prices are going up, and that gives people a bit of cushion as well, a bit of confidence to keep spending. In that sense it is positive. But, it is leading to rising housing inflation, which is a concern. Also rising indebtedness is a big problem as well. I think the weight will play out, is that the bank will be resolve to keep Interest Rates higher for longer than other Central Banks and the easing cycles will be more delayed and shallow. Shery our economics reporter with a preview of what to expect from the rba decision today. You can get around above all the stories you need to know to get your day going including the rba Rate Decision. Terminal subscribers go to dayb. Also available on the mobile bloomberg app. You can customize your settings so you only get news on the industries and assets you care about. This is bloomberg. That first time you take a step back. I made that. With your very own online store. I sold that. And you can manage it all in one place. I built this. And it was easy, with a partner that puts you first. Godaddy. Shery shares have reversed initial losses with investors looking past thirdquarter deliveries that missed expectations. Su joins us with the latest. We know tesla has been shifting their production focus. Is that something to do with why investors seem optimistic . Su yes. The fact they reaffirmed their annual target for shipments. Investors really shrugged off this particular number. Analysts as well. That is despite the sequential drop in output, which the company says was tied to a summer shutdown for factory upgrades. Sls nrs of shipped vehicles missed estesven though it signaled deliveri would be slowing wn as it retold factors for production of ts model3 sedan and its cyber truck. Tesla reaffirmed its 1. 8 million deliveries target. It delivered 1. 3 targets cars so far. Teslas shares were down some 3 premarket on the numbers, but quickly erased ta at one point were up 1. 5 before ending, on an up note. Again, a lot of investors appeared to be cheered by the fact that demand is healthy for tesla. Thats despite a wobbly auto market and some price cuts. Citigroups analysts notes analysts had been cutting their delivery estimates. There was a greater range of outcomes due to this model 3 refresh, by deliveries but deliveries, still missed expectations. And both delivery and production stats missed. There is that. On tesla, they took several steps to produce sales, price cuts designed to still demands, amid higher Interest Rates and inflation. Its been slashing prices on its models all year with markdowns of as mh as 3 for the model x. Whiltesla does not break out sales by region, the u. S. And china are its largest markets. The shares have done very well so far this year. Paul in the meantime there has been trade back trouble for one of elon musks other venture, the social network formerly known as twitter, what is going on. Su there is another company with x in its name, tied to legal business. A lawsuit was filed in federal court. A Company Called X Social Media llc, which helps connect clients and law firms through social media. Elon musk made a lot of changes to twitter including changing its logo in a very abrupt and flashy Rebranding Campaign with the x flashed at us through various tweets at the time in july. The lawsuit claims musks use of xs social media rights, claiming it has spent 2 million of its own to build brand awareness. This is X Social Media. It obtained a federal trademark registration. It sent a ceaseanddesist list lettered to musk. Neither musk nor x court are responding. Mark zuckerbergs metaplatforms famously changed his companys name from facebook to metaplatforms in 2021. He wanted to emphasize the companys focus on the metaverse and related products. That change initiated legal action from four different firms, ranging from a Blockchain Group to an investment firm. So, again, it is a tricky issue when there is a preexisting trademark that is similar, especially when it is protected by a trademark registration. So, this legal activity will continue to play out. Paul Bloomberg Su Keenan there. Lets get to some of the other corporate stories. Birkenstock looking to raise 1. 6 billion from its ipo. The Company Filing says the german foot maker footwear maker will so at 49 will sell at 49, valuing birkenstock at the top end of the range. The filing says investors include the norwegian Software Fund are interested. Asset management has revealed a partnership between blackrock and japan. The two will work on investment projects and Human Resource development. The Prime Minister has laid out plans to attract more asset managers, seeking to arrive japans status as advisement expertise. Lets look at markets, we will start with currencies. The u. S. Dollars long winning streak keeps on rolling on. The dollar spot index up again. A bit of weakness for the aussie, head of todays central bank decision, the rba is pected to remain at hold, with a tightening bias at 60 fr. 60 359 ont greenback. China on the golden week holiday. The yuan is weaker against the reenback. The yen, we are in and on intervention watch, as it edges closer to the 150 level. We have a look at some of the asian stocks. Lets move on, j. P. Morgans Ceo Jamie Dimon will tell us about the biggest risk he sees ai posing to humanity. We will have that and the take on apples foray into banking. So. I know you and george were struggling with the possibility of having to move. Hows that going . We found a way to make bathing safer with a kohler walkin bath. A kohler walkin bath provides a secure, spalike bathing experience in the comfort of your own home. A kohler walkin bath has one of the lowest stepins of any walkin bath for easy entry and exit. It features textured surfaces, convenient handrails for more stability, and a wide door for easier mobility. Kohler® walkin baths include two hydrotherapies whirlpool jets and our patented bubblemassage™ to help soothe sore muscles in your feet, legs, and back. A kohlercertified installer will install everything quickly and conveniently in as little as a day. They made us feel completely comfortable in our home. And, yes, its affordable. I wish we would have looked into it sooner. Think i might look into one myself. Stay in the home and life youve built for years to come. Call. To receive 50 off installation of your kohler walkin bath. And take advantage of our no interest anabelle this is daybreak asia, where half an hour into the session for aussie stocks and 30 minutes out from the open for japan and seoul. Theres quite a few different Asset Classes we are tracking. Kicking off with the japanese yen. Unchanged at the moment, but still close to the 150 level. The japanese bond auction, one of the things we will be watching closely, for the 10year note. Broadly, the expectation that the boj is looking to stay more in easy policy sessions a station. When we speak about rates we have the 10 year yield, the aussie, the won, we are at a level since we have not seen since 2011. The bonds selloff is extending in the session as we get underway, head of the rba decision coming up later this morning. They are expected to keep the key rate at 4. 1 . We are looking toward a weekend day. Japan futures coming online, fairly flat. The asx 200, we are down 1. 5 . Lets change on a take a look at what is playing into that. The big moves being felt this morning is in the energy space. Wti dropping below the 90 a barrel mark. There are concerns, building around the impact of one the fed is higher for longer and what that means for the recessionary environments. These are the big lacquers. Something else we are tracking this morning, this is one of the most read stories on the terminal, it is a callout from kalon of edge kolanovic, he has all of these talking points whether the fed can engineer this soft landing, he says it is similar to the situation in 2007. His view is that when you see higher rates, you also have a firmer dollar, and the sustained move higher in elegy energy prices. All of this is not a great outlook for risk assets for in general. Paul on the subject of the fed, we are hearing from the cleveland fed president right now delivering a speech. Here is some of what she is saying. She says despite progress, the inflation rate remains too high, and risks to the inflation forecast from tilted to the upside. She said that the fed may need to raise rates one more time in 2023, then remain on hold for some time, with the need for one more rate hike. The fed is determined to get inflation to that 2 goal in a timely way. The cleveland fed president speaking there. You can also catch that speech as it happens right now on live. Jamie dimon says Artificial Intelligence is already being used by thousands of jp morgan employees. While it is likely to replace some jobs, it will also make dramatic improvements on workers qualityoflife. He told us how he sees the Technology Changing the banks operations. It is a living, breathing thing. There will be all types of different models and tools and technology. But the way to think about it is every single process, errors, trading, research, hedging, every database you will apply ai. You might use it as a copilot,. It may replace humans. Ai is doing all the equity hedging for us. Models, it is note while youre talking to someone, it involves taking notes, it says to you this is a thing of interest. All error, customer service, it is a bit of everything. Emily it will replace jobs. Focusing to take a deep breath. Technology has always replaced jobs your children can live to 100 and not have cancer because of technology. They will probably be working 2. 5. Days a week planes crash Pharmaceuticals Get misused, there are negatives. The biggest negative is ai being used by bad people, to do bad things think of cyber. Henry kissinger talked about warfare. I think eventually having legal guardrails around it. It is hard to do because it is new. But it will at a huge value. For jp morgan, if it replaces jobs we hope to redeploy people. At First Republic we offer jobs to 90 of the people, they accepted. We have also told them that some of those jobs are transitory, but we higher 30,000 people year. We expect them to get a job somewhere local, at a different branch, or function. We will be doing that with any location. Emily the Biggest Tech Companies prop up a big chunk of the s p. Is ai too big to fail . That is too broad of a question. In any industry, when you say too big to fail, i lost touch of what that means. These things are bailed out. I dont understand. They should ask what they want. If the regulators dont want to bank to ever fail again, we should do a, b, c, d, e. I i think i think doddfrank accomplish most of the goals. Big tech, you have to be very specific. Sometimes companies misuse their position, sometimes they dont, sometimes regulators catch it, sometimes they dont. They are powerful. Ive been writing about big tech going to our business, we have fintech, but we also have big tech. They will abed Payment Systems someone at white label banks, like what apple did. I would be against unfair use of their position. Emily apples going deeper into financial service. I wrote about it five years ago. Emily how worried are you now . We will compete. They have a tough competitor. But they hold money, move money. You can put money in a market, a white label checking account, credit card. They are a form of a competitor. We also partner with them. But i am used to partnering and competing with lots of people. Emily existential threat . I dont think so. If we were complacent about it, yes. Shery jp morgan Ceo Jamie Dimon speaking with emily chain chained on the financial industry in the age emily chang on the financial industry in the age of ai. Google is likely to extend its dominance of the Search Market into a new generation of ai power tools, lets ring in vonnie quinn with the latest. The comments coming during microsofts testimony in the case against google. Vonnie the doj is accusing alphabets google of maintaining a monopoly by spending to maintain that monopoly. Spending 10 billion a year to people like competitors to microsoft, to smartphone manufacturers and to phone carriers. The doj uses microsoft in this instance to make its argument, microsoft got onto the stand and said, yes it is true. What is happening is google could accelerate its lead in ai by buying all sorts of access to search and to Large Language Models and it becomes a selffulfilling prophecy if it has all of these resources. By default it becomes better as ai power tools. This was not the argument that nadella was making the argument in february when the microsoft engine Search Engine did better in an ai situation that google. Than google. The point was it is a misnomer to suggest that people search by choice. Search happens by default, just like when you get up in the morning and brush her teeth. At this point, you search google, not the internet. Apple in part has made that happen. Apple has been the kingmaker. Is a direct quote from his testimony, whomever they choose, apple, they king make. Paul google has become a verb, to your point. Nadella has tried very hard to dethrone alphabet. But he is biased, right . Vonnie exactly. He has tried hard. Were learning more details about how hard he has tried and how many years he has tried. Since 2014 when he was made ceo of microsoft, he has tried annually to make a contract with apple that will push google aside in terms of being a Search Engine on the iphone. He made an rose after apple got rid of google as the default Search Engine for siri, but kept the default Search Engine for safari and microsofts effort to make being bing nowhere. He alleges apple got more money out of google because it was using the amount of money microsoft would used to bid to tease google of making a higher offer, to keep its place as the default Search Engine. Nadella is a Friendly Party to the doj in this instance. The doj is using microsoft in order to show, if a company with these kinds of resources, as huge as microsoft with a Search Engine that is pretty ok. If it cant dethrone or even take a bite out of googles search share, how are Smaller Company supposed to do it, therefore google is a monopoly at this point. To continue making his case it is also going to call the founders of smaller Search Engines to the testimony stand this week. Paul all right, bloombergs vonnie quinn. Still to come, oil prices coming off of prices, after worries of further rate hikes inlowing economy. We discussed that with haitong international. This is bloomberg. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. Shery the middle east biggest conference is underway. For once, oil is not topping the agenda. The gathering comes two months after the emirates host the next big Climate Change summit, cop 28, that has brought Energy Transition to center stage. Supply continues to be the main driver for prices, with the uae minister saying capacity has dwindled due to a lack of investment. The last thing we want is to lose the demand. We as producers we care a lot about that the price is right for the consumers. But right for the consumers for a limited time is a very short site. If i can pick up on the demand point for making, you have been quite actively engaged in this, but basically, a good chunk of the anxiety has come around the health of chinese and the world bank a few hours ago says that they are now expecting chinas gdp to grow less than expected, so they are forecasting lower economic momentum. What are you seeing in the numbers . You always share your skepticism of many of the mainstream data points. I want to understand what data you are looking at to tell us what is going on with the barrels into china . Well china is a big part of our analysis that we do at opec and opecplus. We are meeting every two months for monitoring the improvements or the decline in any major market. China, as you know is a main demand we are all looking at. We are meeting to analyze and take the decision based on the analysis. It is not just the decision that is disconnecting from the reality. The world bank they have their numbers, but we believe, having 23 countries, we believe we have more data within opec and opecplus than any analyst, godless of who they are. We believe we are selling to china. We are selling to different parts of the world. And we know this data, we collect this data, we have our outlook as well. I believe that we are doing our best to maintain the supply and demand at a healthy balance. Sometimes, it is the traders, sometimes it is not recognized. All of that is in the mix. Now, if china slowing down if because last year that was a claim and we ended up with the highest increased demand we have ever seen in history, which is around 2 . So, these analysts, analysis, are as good as what they are put. Many dynamics are moving on. We hope that the growth in china picks up. We hope that the whole world the whole World Economy is depending on china. We hope that this progress encourages us to do more, because, definitely if you asked me what is my worry. My worry is an undersupplied market in the short term. My worry is an undersupplied market in the longer term. If we lost 4 million within three years in a group that owns 80 of the resources, imagine what message that is giving you. Shery lets discuss the opportunities in the energy space and bring in scott darling, managing director at haitong international. What do you like in this environment of rising prices . We are about to go through Third Quarter earnings. Of course, some of the refiner should do well. You had a trickling of refining margins last quarter. You had a 10 increase q1 q for oil prices. That will help with interestfree inventory gains. Just what the uae Energy Minister said, we are going through a multiyear upside cool in terms of capex which started in 2022. Some of the oil service names, if you can believe that spending in the Oil Price Environment will continue, we will be looking at the Global Oil Service names but if you look at some of the China Oil Service names, they have lagged some of their peers as well. That is more Investor Sentiment than fundamental. Some of the China Services we will be looking at mediumterm. Shery we have seen wti hovering around the 90 a barrel level. How much more upside can we get from here . Look, we have been a bit more cautious. We were a few weeks back, we would still be cautious going into 2024. Supply will eventually start responding to higher prices. More importantly, consumers will. It takes maybe six months or so before the consumer starts to moderate. We are talking about cost of living or have been in many economies. Thats a matter of time before you are starting to see oil demand moderation. Paul what is the level that headwind consumers start to change their behavior in terms of driving less, flying less . Thats a good question. For us, we are already at that level. I think if you look at your own personal travel and things like that we are a lot more cautious where we are traveling. The cost of travel, etc. Psychologically when we are getting towards 100 and it gets into the media lot, the consumer starts to. Respond we had a good driving season for demand over the summer period. As we come into the shoulder months and into winter, possibly we are going to start to see some more cautious traveling, being careful with spending anything around energy. Paul we heard from the uae Energy Minister talking about demand and china, what is your outlook for demand in china for the coming quarter . How was i going to affect the price Going Forward is that going to affect the price Going Forward . We were looking at late single digit or growth demand this year. If we look back at the earnings when some of the major China Companies came to hong kong it was quite robust discussions around the demand outlook. I dont think that has changed. What has changed is perhaps chinese or demand or growth will not be double digit this year. There is some uncertainty as we go into 2024. Is that going to be mid single digit growth or 3 trend growth, which that will be significant to the Global Oil Demand picture. Shery how are you positioning for the longerterm Energy Transition . In the past quarter, we have not seen more of those solar names performing that well. Yeah that is true on higher cost. In the mediumterm, haitong likes the wind and solar names. You have better Earnings Growth outlooks there. In seoul they have not performed that well this year. But in 2022 there were outperformers youve seen ev battery makers being our best performing u. S. Energy subsector. Ev demand growth is robust. Obviously Raw Material Prices like lithium prices are down 20 this year. Going into 2024 we will keep with the wind names which gives us good Earnings Growth outlook. I think the solar names actually start to recover as well going into next year. So, that will be our key picks. Shery we have seen those energy exporters, but Energy Importers are taking a big hit when it comes to these higher oil prices. One of those is india. Do you see opportunities in that market . Yeah. It is more about the domestic indian demand. Some of the Oil Marketing companies would still be positioned in. The once we would be more cost issue ones we would be more cost hesitating is lng. The prices not just in the winter season for next year. We have a tight, possibly supply deficit in the lng market. I would keep in the domestic themes in energy and the oil markets and the oil markets in india will continue to do well. Paul scott darling, managing director at haitong international. Be sure to tune into Bloomberg Radio to hear from more of the days newsmakers and get analysis from the daybreak team. You can listen via the p, radio plus, or bloombergradio. Com. Plenty more ahead, stay with us. Paul lets check in on some of the political stories making headlines in the u. S. The publican congressman matt gaetz move to topple the House Speaker mccarthy setting up a highstakes vote on a process that has not resulted in a speaker being removed since 1910. Mccarthys embrace of a bipartisan deal to avoid a Government Shutdown triggered the call from the far right republican. The vote must recall between two legislative days. Bipartisan senators will meet with president xi. Senate majority leader Chuck Schumer plans to raise the issue of micron ability to do business in the country. They want to meet with the u. S. Business community in shanghai to discuss investments in the climate. Shery lets take a look at how sovereign yields are doing at the moment in asia. We are following the global bond round. We are seeing the ustralian 10 year yield hitting the hihest level since 2011. Ulyear highs across the board as we have seen the 10 year yield the u. S. , also touching that 4. 7 level, the highes since 2007. The 30 year bond has ted the highest since 2010. It comown to where the fed goes from here. We monitor the yen as it teeters towards 150. Standard chartered gives us their outlook. The market opens in tokyo, next. This is bloomberg. This is daybreak asia. Counting down to asia mjor market opens after u. S. Markets struggled. Data beating expectations from fed officials, including the cleveland fed official speaking right now talking about rates staying higher for longer. Paul that drumbeat keeps on going. We have a much lower market here in australia. Oil stocks, Energy Stocks are baring the brunt of selling. Japan opening up for trade. Anibel, what are we watching . It is going to be setting the stage for trading acrosset trading this morning. But at the outset, watching moves in yields. The 10year yield Holding Stable but were seen 10year cycle highs. As you said, the cleveland fed president is a hawk on the committee but still saying that officials or policymakers may need to hike again over the course of 2023 despite the progress thats been made so , inflation still too high. In terms of the outlook for japan. That ratio between the d. O. J. And the fed still ve much in play. Trading close to the 150 level but on the note ofbds. Were continuing to see 10year fields. The b. O. J. , as weknow, has been reluctant to allow further moves to the 1 mark for the 10year note so the auction rest going to be close in succession. The any key 225 very much like the wall street session. Bearish. Lets change on because also, as i said, korea is shut but we hve australia one hour into the trading session and the big focus is whats happening in the energy markets. Well see if it falls below the 90 level. So trade is very much focused on that higher for longer narrative. The manila guads down 1. 15 interior stocks and in th 10year yield, we continue to see it rising this morning at a rate we havent seen since 2011. Well be wtching that. If we see the decision from the r. B. A. Today, it is expected to keep that key rate at 4. 1 . Paul thank you. Lets bring in the senior from wealth management. I want to start off in japan. We still have a very weak yen, just below the 150 level. If the ministry of finance were to intervene is this really the tune opportune time to maximize the impact . We have rhetoric from japanese officiashich indicate that 150, 151 is the level theyre watching. Many the ministry of finance interveneses, they could have an outsized impact but we learned from last year, unilateral intervention is long lasting. We need to see bank of japan let yields rise. Paul one of the side effect of this much weaker yen has been to propel the nikkei much higher. Not helping at the moment, though, off by. 75 . Stocks in japan still looking reasonably cheap. Are you tempted athe levels . Absolutely. Japanese equities is one of our key calls and youre right, japanese stocks are cheaper. Also u. S. Equities so from a valuation perspective theres a good argument to made but we d the recent reforms from Tokyo Stock Exchange and we think that it will gradually increase for japanese corn rats given that they are so cash rich. Japanese growth, p. M. I. , has been quit prevalent. Overall we think the recent pullback in Japanese Equities may not be a bad opportunity to add exposures. Do you add exposure to china given the you ans weak yuans weakness as well . For china, valuations are quite cheap. Analysts expect frustrations for Earnings Growth is still quite elevated but weve seen persistent youth growths and instability. So i think the data we get in terms of Consumer Spending will be quite crucial so actually right now we think it makes sense to stay neutral on china but we are looking there once we see a turnaround in economic data. And what are the opportunities with this global bond drought as well . From our perspective, the recent drought is looking quite stretched and its a great opportunity to add to longduration bonds. From our perspective, we think that yields come down towards 3. 5 . You can lock in the attractive yields but also lock it in yourself on Capital Gains on a 12month horston. Paul i understand youve put a date on it, september, is when you expect to see the fed begin cutting rates. What sort of state will the economy be in by then to demand that sort of move . We expect the fed to start cutting rates maybe around q. 2 next year. Markets, at the risk of being complacent. Recession has been wrought out by equity as well as bond markets but businesses, corn rats, households have had close to 15 years of close to 0 borrowing costs and it would be a surprise if we see the recent rally in bond yields not having a victim, both from a financial perspective but also from an economic perspective. We think the faster bond yields rise, theres a probability theyll fall faster as well over the next 12 months. Paul which team are you on, Team Soft Landing or Team Recession . We are on Team Recession. We have around 55 to 60 of recession in 20 4 and weve started seeing inflation coming down. That margin should allow the fed to cut rates next year. The fact that the student repayment loans have startled will also start crimping the consumer recession in the u. S. We think it could go into next year but we think it will likely be a mild recession. We do like the bonds at the moment, especially given the yields weve seen. Good to have you with us. As were just a few minutes into a trading session in japan. Korea away on holidays, china will be away on holidays. Annabelle, what are you watching . Its still that high yield narrative coming out this morning. The effect in bonds and equities but also i energy and likewise in the material sectors because when i look at where were trading so far, it is the Energy Materials indexes or some that are lieding the losses so far for the broader bench markets down around 1 . Were watching crude cause that 90 a barrel level. Here on the outlook and we just heard from citigroup, ed mrs saying that 70 per barrel is possible soon. Energy stocks, japan down nearly 5 as we get underway. As i saiders we have the material sector in focus. Gold, coppiners one to watch. Both medals sliding back to levels we havent seen since marc. These are medals that metals that dont like the rising rates either. A quick check on some of the tesla supplies in tokyo. Trading underway jus under 10 minutes so far. And likely we are seeing a drop so far. Teashipped fewer cars than expected globally in the Third Quarter. Arod the 335,000 mark. Factorry delivery deadline of decline in more than a year. Still ahead, more from our exclusive interview with Stanley Morgan c. E. O. Jamie dimon. But first, a look at whats on the radar for the reserve bank of australia ahead of its Foreign Policy decision under the new governor. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Annabelle the bank of japan has announced an extra bond buying plan as a global debt selloff forces policy makers to curb sharp increases in yields. Lets bring in junior senior japan economist harold. Weve seen these moves by the b. O. J. Adding incredible pressure on the yen but how much difference it actually make in slowing down yield spikes when the whole world global debt is just selling off . I think the b. O. J. Is trying to, in both hands, try to restrain the longterm yields so their scheduled bond purpose operation and additional schedule for buying longer term yields. It is clearly a signal for the b. O. J. That they want to restrain the longterm yields. They looked a little bit reluctant to purchase more j. J. B. s in september. I think its because of the weaker yen. It had reached a 10month low and the ministry of finance just started to so the b. O. J. Had to care about the annual so they skipped on scheduled operations when the b. O. J. Touched 0. 07 but things have changed. The also Bloomberg News has said its ok to intervene if its meant to deal with the volatility and also the Prime Minister also mentioned about intervention. So therefore now the b. O. J. Has the minister of finance at its back so the b. O. J. Is confident that to flex muscle with the yields with the ministry of finance flexing muscle on the yen. Pop they have the ability to restrain yields but whats the motivation of the b. O. J. To keep the yields slow . I think the b. O. J. Want to restrain the yields because the u. S. Seals is rising and also we are having 10year bond auctions today and also 30year bond auctions so i think they accelerate their bond purchasing and at the same time the real economy suggests that like in the domestic demanding is tumble, the lake market isnt tight enough to feel the wage growth and inflation. There are a ton of reasons on the b. O. J. Side that they want to keep stimulus and in the september meeting, the b. O. J. Made it clear and there they reinforced their stats. Shery is it inevitable that well hit 150 on the yen . Its absolutely widening the gap between the u. S. Yield and selling pressure on the yen or trade or speculation but i dont know where the line in the sand is. I think the official said utility matters but i think theres a line in the level and 150 is absolutely a sign. I think its more probable that intervention will come soon from the m. O. F. Side and the d. O. J. Side. I think the weaker yen is accelerating imimportant prices and the polls show the voters are getting frustrated with the governments measure to deal against rising prices and therefore i think they do what they have to do. Paul bloomberg senior japan economist taro there. Senior policymakers have been sending mostly hawkish vision even since the last report showed some of the slowest inflation since 2020. Supervisor michael bass said rates are at or very near a sufficiently restrictive level. And cleveland chair Loretta Mester said a round of increases will likely be needed one more time. As the bank of australia makes its first rate call on tuesday under a new governor, Michelle Bullock. Most expecting cash range not going to change. Likely to stay at 4. 1 . Apart from the governor, anything else likely to change . What are we watching for here . The broad message is going to be that thats a hawkest hold. So we are holding Interest Rates now but that doesnt mean we will not raise rates in the future. There is still concern about inflation and especially with Oil Prices Going up again. I think theyll likely still talk about some of those concerns. Probably talk about high hower household indealtedness and how cob samples has kind of weakened but investors will mass the statement very closely for any small change. Thats going to be the key. Shery will that help at all when it comes to cooling down the property sector . It seems thats a whole different discussion of supply and demand at this point. Yeah, thats right. It is mainly a supply problem at the moment. We have not built as many houses in this country as we need and that has driven not just thousandsing prices but also rent inflation and that is a big concern for the r. B. A. And thats something that Michelle Bullock will be closely watching too. Theres not a lot that the r. B. I. Can do there except keep Interest Rates elevated for longer and maybe keep the easing sighle swallowoer. Paul hows the australian economy tracking overall . The data for the Third Quarter was revised upward. The Second Quarter data was also reason, except for consumption, which is showing a good amount of slowdown. Everything else seems to be fine. Housing prices are coming up, the labor market is still resilient. A lot of the economist notes that come out, resilience seems to be the bulls word that everybody keeps talking about. The last part of that is also the optimism around the u. S. Economy so i think as long as we have that global in intact australia will be fine too. Paul economics reporter swati. Pandey. And in todays edition of daybreak, bloomberg subscribers on they are terminals and also available anywhere on the bloomberg app. This is bloomberg. Shery Oil Continues to push lower in fact asian session. W. T. I. Below that there are 90 per barrel level. We already had concerns about economic demand, especially given the higher for longer narrative from the fed. Crude trading at around the 90 per barrel level. The expectation right now is for a little bit more supply, though, coming online. Citigroups global head of Commodities Research at morse sees the outlook worsening for crude next year with the outlook on demand going higher, weighing heavily on prices. Take a listen. We dont think demand is going to come in stronger than expected unless theres a change in every economies east judgment but the drag from china, the drag from europe and what we expect as a drag from the United States coming into the market weighs heavily so if benefit 1. 4 to 1. 7 g. D. P. Growth in the world. Its hard to find a number on the physical oil side that cant be readily melt without having surplus in the market. And you write that higher prices in the near term could make for downside of prices next year. What is the lag between thousand that translates into future demand . One of the issues is china and its role in the International Royal system. Its got a role thats almost as important as opec plus and theyve been playing this role since the great financial crisis when they discovered the benefits of buying oil when the price was low and selling mostly product when the price was high and thats exactly the position they are now in. They accumulated just before the pandemic and now, about 500 billion barrels worth of oil. Their inventory of crude and product is equal to about 130 days of demand cover. The i. E. A. Typical country has a rule of 90 days typical cover. Thats pretty conservative so theyve really overdone it. Maybe due to politics as well. Theyre going to be weighing less heavily by buying less highpriced crude and taking advantage of that with these high mar jinx in the refining system by selling more of that into the market than they otherwise would. Paul head of Commodity Research ed morse speaking with our colleague. Lets look at markets in europe at opening. European markets closed at sixmonth lows. We have futures in the negative territory at the moment and the u. S. Dollar gang pretty hard against if swiss frank and the euro. Espn still perilously close to that 150 level and we are always on watch for potential intervention from the ministry of finance. Australia, the aussie dollar 63. 56. We have that Rate Decision from the r. B. A. Today as weve been discussing. No change anticipated. Expecting to see rates holding at 4. 1 . Still to come, j. P. Morgan c. E. O. Jamie dimon talks about the two biggest risks to the u. S. Economy. More from our exclusive interview next. And Hong Kong News and china amid a police probe. Keep an eye for the Hong Kong Open later on. This is bloomberg. Paul getting some breaking news out of australia. It is building approvals for the month of august and a very sharp rebound. Same gain in building approval on month. Expecting a much more modest 2. 5 gain and big turnarounds on the 8. 1 contraction from july. So building approvals blowing expectations out of the water there and weve had a currentlying Housing Market in australia as well. In spite of of the 44, basis points of tithing from the r. B. A. The meeting takes place in just under three hours time. That blowout building approvals number for august. 7 . Belle, what are you watching . Annabelle the aussie 10year at a level we havent seen since 2011 but you can see that yields are moving higher in the debt space following what came through in the treasures overnight but it is that high continued anywhere active continuing. Weve seen Dollar Strength still coming through and on the asian fx space, it is that japanese yen were tracking extremely closely. Very close to the 150 level that weve watched for intervention. It does put downward pressure on commodities in particular. Dropping. 6 in singapore. Crude now close to that 90 a barrel level and w. T. I. Is under that point. Think about how thats affecting equity this is morning. Half an hour into the session for japan. 90 minutes underway for aussie stocks and were seeing broadbased losses. In particular, materials are down 1. 25 . Followed closely by whats happening in the energy sector. It is that story of higher for longer playing out in that asset class as well. Korea is shut today. China as well. Still away for golden week. Hong kong, though, will be coming back online and we have a key stock to be watching when trading starts in one hour from mow now. Thats ever grant. Its billionaire founder is under Police Control so some expected criminal activities there. It was down 20 on its last day of trading back on wednesday. Shery lets turn to j. P. Morgan chairman and c. E. O. Jamie dimon saying that the u. S. Economy is still healthy and the consumer is in good shape but he told us there are two big risks ahead. The u. S. Has been very strong for a while. No surprise. 5 trillion was pumped in physically and fiscally and now its being reversed. The consumer still has more money than precovid. Its spending down. Home prices have gone for 15 years. Credit is not deteriorating. Credit alltime highs, not inflation or income adjusted. We think its normalizing. Thats the here and now and all the tata is the story because of covid and things like that. I dont make forecasts, i look out there and say what are the range of outcomes from hurricanes to storm clouds. No, irks storm clouds dissipate. I said no, that one may be a hurricane. We dont know what it is. Heres what they are. There are two different than other things. I dont worry about the weather and honestly i dont spend a lot of time guessing about the economy, whether its sunny or rainy. I dont worry about that. We run the company to serve clients to thick and thin. Serve governments, as much regulators. Thats all weather but there are two things extraordinary today which may have different outcomes. We dont know if theyre going to hit, when theyre going to hit. What theyre going to do. One is the fiscal money being spent is so big, largest in peacetime ever. America and kind of around the world with already very highdef sits and q. T. Weve never had. I know some people think q. T. Will be uneventful, im not so sure. And then all the longterm fiscal things are kind of inflationry. Oil prices, the green economy, the restructure of trade. You mean it, is adding to inflation, not subtracting from it. So inflation may not be there. There rates my go higher. But ukraine, the humanitarian crisis. A war not far from here. Its nuclear blackmail. Its going to affect all global markets. Those two things i keep a close eye on and how it affects the economy is different. I tell people be prepared for higher rates and slower growth. 7 , are we really going there . I dont know, whennics 5 they asked that. Its possible. Can it go to 7 . Yes. Are there factors that would drive it higher than what it is today . 10year bond. Yes. Is supply and demand yes. Im just saying be prepared for it and then the worst case is stag nation. Higher rates because off booming economy because you have a lot of competition for capital is not the same thing as stag nation. What is the result of 7 on your growth . Im not worried about j. P. Morgan. We could handle 8 . We could handle again. Wheres china on the list . When i say geopolitical, thats the big one. Its the threat from ukraine, oil and gas, food, migration. All our rhythms, the most important one being china. That is the most important one for the future of the world and china has affected it. In fact, its hard to see really positive outcomes with china until thank you crane war is resolved or they can say they have a victory of some sort. Paul j. P. Morgan chairman and c. E. O. Jamie dimon there speaking with bloombergs emily chang. Coming up, chinas carmaker is closing in unities will and its sales. Well compare and contrast next. This is bloomberg. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. Shery hong kong markets are set to reopen next hour with a potential tail wind from a big increase in tourism revenue across the first weekend of the mainlands eightday golden week holiday. Lets bring in katherine who leads our coverage. We are expecting some optimism from golden week but at the same time weve seen a segoff so how are we expecting trading to start . Catherine youre right. Its like a mixed message this morning. Hong kong, the travel tata weve gotten so far its still pretty early into this golden week but this numbers out of the gate are very, very strong. Were talking about retail sales, travel tata thats looking at least more than double this time last year. Granted, a low base but still very strong and macaos revenue numbers are back to man academic levels. In the small pockets of tourism and travel thats looking pretty good. Things are still concerning on a macrolevel so theres a little bit of wear waryness. So it will be interesting to see. Paul adding to that weakness. China resume trading today since his chairman was not arrested but under Police Control. What might we amendment if we do see ever grant shares resume trading today . Catherine the neverending story of china property woes. As you say, they were suspended late last week after a news report and concerns about how hes now in police custody. Were obviously expecting another gap gapdown, not too surprising when they had resumed a few weeks ago. It was a pretty large gap lower. I think people are already embracing for this in the fatigue and concerns about china property in general. Thats the biggest outlier in the economy. People still very concerned about where things go and how it drags the broader economy. Probably not going to look very pretty so well see how that happens in an hour or so. Paul kraft religion ngai watching the Hong Kong Open. Some stocks to watch when markets do open in hong kong. That reporterred jump in travel rev lue and tesla spriers may move after the carmaker reported Third Quarter delivers that missed the average analyst estimate. They contrast with chinas car maker which sold another Record Number of cars and e. V. s in september. Danny, give us the snapshot. How did b. Y. D. Do . B. C. Y. D. Sold 431,000 e. V. s across the Third Quarter. Just 3,456 fewer than tesla who sold 435,000 and missed analysts estimates. Tesla disappointed wall street with its much lower than expected delivery numbers but its not too much of a surprise when you look at just how they had to reduce down time for its factories as they shifted to a new model and also prepared for the Tesla Cybertruck as well. But for the b. Y. D. To get as close as it has, its the closest its got tootles la in terms of quarrel numbers ever and it just shows how much theyve gone from very little to someone who is challenging advertise will tesla to all right top. Shery how long will it take to overtake tesla . Can b. Y. D. Maintain this performance . This is a big question. We expect tesla to resume normal business in the Fourth Quarter. They should carry on with its sales trajectory as its pipeline of factories get up to full speed. For b. Y. D. , they are on a similar trajectory as tesla but you should expect into next year where well see an Inflection Point in terms of pure e. V. Sales but shouldnt really expect it in the Fourth Quarter of this year but well be watching closely because it will be a watershed moment. Shery broom bergs transport reporter danny lee. Korea still away on holidays but japan trading to the downside by more than 1 . Every sector is in the red. Energy and financials leading the declines. Oil continues its trend downwards. With afe100 also down. On a day we expect the r. B. A. To hold rates steady. This will be the first monitor policy decision under Michelle Bullock as the new governor. Were watching the japanese yen, very close to that 150 level. Stan freed is finally about to go on trial for the multibillion Dollar Collapse of crypto ftx. More on the case against him next. This is bloomberg. Paul lets look at some stories weve been tracking in the United States. Republican congressman matt gaetz has official liquor moved to topple house week is speaker Kevin Mccarthy. This sets up a highstakes vote thats not resulted in a speaker being removed since 2019. Mccarthys embrace on a bipartisan deal to avoid a Government Shutdown triggered the action. A Bipartisan Group of senators hopes to meet with president xi jinping when they visit china. They plan to bring up the issue of microns ability to do business in the country and they also want to express concerns about the investment climate. Prosecutors say former President Donald Trump overvalued his properties to get cheaper rates. Trump attended the start of the civil trial on monday. Trumps defense team arguings the claims involve on successful and profitable trances actions with no victims. And one of the citys longest ever Money Laundering cases in singapore. It comes after Police Seized more than 1. 8 billion in re sets and arrested 10 foreigners for alleged proceeds from scams and illegal gambling in august. It puts singapores zero crime tolerance in question. Shery . Shery almost a year after the collapse of Crypto Exchange ftx, its founder Sam Bankmanfried is about to face trial in new york. Hes pleaded not guilty to seven allegations of fraud. In the span of three years, Sam Bankmanfried became one of cryptos biggest stars. He and his partner founded ftx. By october 2021, venture capitalists had poured millions into ftx and celebrities like shaquille oneal, model michelle bundchen had endorsed it. Users seared to five million globally. The ftx name became well known. By early 2022, the bahamas based Companies Valuation skyrocketed to 32 billion. Ftx had become one of the worlds biggest Crypto Exchanges. Bankmanfrieds wealth climbed to 36 million and he said he wanted to do good with his money. Its not what i should do with my money, its about how i can help the world with it. He donated tense of millions to bipartisan committees and frequented capitol hill. At the time he had no plans to slow down. Im going to be here for the long term. I have no plans to leave. But in november of 2022, things ban to unravel. They said he had also funded alameda research. In response, on november 6, the c. E. O. Of rival Crypto Exchanges binance said we have decided to liberty date any remaining on our draws. Ftx didnt have the funds to meet them. In a rescue attempt ftx reached a deal with binance to sell out but binance backed out. I couldnt trust any of the information in the data room. So by november 11, it was over. Ftx filed for bankruptcy and bankmanfried resigned as c. E. O. That same month he apologized at a public event. I made a lot of mistakes. There are things i would love to do over again. I didnt ever try to commit fraud on anyone. But just a few weeks later. Bankmanfried was indicted. Its fair to say this is one of the biggest financial frauds in american history. Paul bloombergs cailly reporting. Microsoft c. E. O. Says a. I. Could help its rival google extend its dominance of the Search Market. He took the stand in the companys antitrust trial and argued it could add a. I. To make its Search Engine better. He revealed in the same hearing that microsoft was being to drop its Search Enginess bing brand. Birken stock is looking to raise as much as 1. 1 billion from its i. P. O. It will sell in a range of 15 to 49. The filing says investors including the Norwegian Sovereign Wealth Fund and t. Rowe price are interested in buying shares. Blackrock japan. The president told us the two will Work Together on investments, products and Human Research development. The Prime Minister has laid out plans to attract more, seeking it to become a center of expertise. Shery we are expecting upside onyields. In the new york session weve already seen the 10ear yield touching that 470 level, the highest sings 2007. The 30year yield also around the higst level since 2010. Had fed officials being a bit more hsh in their rhetoric. Even just a few hours ago we were hearig rom the cleveland predent talk about higher for longer. At the same time we had some economic data. S. Factory activ surprisingly to the u side. Angiven that we did void a Government Shutdown, we are continuing to talk th narrative of higher forer and, of course, what this says is that the global bond drought is continui thats affected yields on j. G. B. s as well, right . Mall, we are seeing the 10year yield under a little bit of pressure in jabut were still around levels we havent seen since 2013. No wonder we are now going to get the bank of japan carrying out an extra bondbuying plan for this week. But, of course, a key question is then what happens to the yen . Paul exactly. Theye just feels like wee been watching itor weeks now knockngon the door of 150. 48. 46 at the moment. Hovering around that level where we might have intervention. But were it to happen, you would think, and some of our guests have been weighing in on this that this week would be really the opportune time to do it we have a lot of traders away. China on the golden week holidy so making a move on the yn, you might get more bang for your buck if it happened in the next few days. Coming up, why sneais loading up oickities equities, oil and gas stocks. Plus, discussion on the r. B. A. Decision. Our coverage continues as we look ahead to the start of trade in hong kong. This is bloomberg. Hi, im jason and ive lost 202 pounds on golo. So the first time i ever seen a golo advertisement, i said, yeah, whatever. 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