I am haidi stroudwatts. Annabelle i am Annabelle Droulers in hong kong. We are counting down to asias major market opens. Shery from bloomberg headquarters in new york, i am shery ahn. U. S. Warns iran against escalating the war in israel as washington and its allies step up efforts to avoid a widening conflict. 600,000 gazans have fled south ahead of an expected invasion. New zealand is set to have a new Prime Minister. Industries Government Faces an uphill battle for unity in the wreck of the field indigenous boys referendum. U. S. Futures coming online in the asian session, seeing an upside of about 0. 1 percent after u. S. Stocks were losing ground in the friday session. Markets were bracing for more geopolitical tensions in the middle east over the weekend. So we saw at bigtech selloff over the friday session. Treasuries give the ground. The 10year yield falling towards 4. 6 . That safe haven demand continuing as we brace for more volatility this week. Were also watching oil prices. They are under a bit of pressure after the biggest weekly gain in about a month. Well wti settling above 87 a barrel. On concerns about a potential imminent Ground Invasion of gaza. Perhaps a bit of support to the markets coming from earnings season. We had wells fargo reporting, wells fargo. They gained on solid results. Goldman sachs and Morgan Stanley reporting this week. We will be watching this result very closely. And we will be watching the reaction to new zealands and action as well. Haidi yes, it has been a big political week not just here in new zealand, but also across the tasman strait in new zealand. We had an overwhelming result in the weekend elections towards the national party. Looks like the Prime Minister elect will be Christopher Luxon, former unilever ceo and with just three years of political experience under his belt. There is a bit of horsetrading to come with their closest ally, the party has the barest of majorities. We will see with negotiations in the next days and weeks to come potentially involving the new Zealand First party with mr. Peters who has now staged at third come back to politics. Really the star lord the lazarus, if you will, of needs and politics. Christopher saying he may be new to politics, but he has a lot of experience when it comes to mergers and acquisitions. And when it comes to austria, we saw the overwhelming no vote, very divisive, and at times very difficult to deal with campaign for the voice referendum. It is now down to Prime Minister albanese to try to find the unity he had hoped this vote would bring. We will be speaking exquisitely to the former new zealand Prime Minister as well, bill english, and we will talk about the election results. The challenges ahead for this new government. Shery alright, lets get to over top story. We continue to watch the israelhamas war. The Israeli Military seeing some 600,000 people have left gaza city as its troops gear up for a ground war against hamas. Meanwhile, the u. S. And its allies are racing to prevent the conflict from engulfing the middle east. Bloombergs Michael Heath joins us with the new test. Israel telling gazans to move out of the north of the enclave. What is the latest on the ground offensive . Michael israel, the idf estimates that 600 thousand people have left gaza city, as you mentioned, to go south. Basically the expectation is that the ground offensive, when it happens, well go into the Northern Area of the gaza strip, the builtup areas. On friday, israel warned people not in gaza to start shifting south. It is about 1. 1 Million People there. Only about half of them. At this stage, israel is bringing up its reserves. 300,000 soldiers have been brought up in the air gathering around gaza and also in the north where we have been seeing shots fired by hezbollah as well. [clears throat] excuse me. You haidi mentioned the exchange of fire between hezbollah and israel, Something Else we are watching. Is this what many are seeing as approved with a widening of the conflict . Michael yes. Secretary of state Anthony Blinken has been doing diplomacy around the region. With that in mind, the u. S. Also had back channel conversations with iran where it warned iran to keep hezbollah in check. Hezbollah has a lot of troops on israels northern border. The secretary of state also spoke with egypts president , the idea being that they could perhaps bring in relief for gazan civilians on the border with egypt and the gaza strip. So the view is that they are trying to keep this contained to israel. The iranians are set that the worse it gets in gaza, the more likely that it spreads. The u. S. Has brought in a separate Carrier Group as well to try to dissuade anyone else from intervening. Its at very tense situation. Shery Michael Heath with the latest on the ongoing conflict between israel and hamas. Our next guest says that without evidence, it is unwise to assume iran is hamass puppeteer. With us is roger shanahan, and Analysts Covering the middle east. Roger, great to have you with the how close are the worldviews of hamas, iran, and even hezbollah . We continue to see those attacks. Rodger we have to differentiate between the groups. Hezbollah is a creation of iran beginning in 1982. They are both from the sheer side of islam. Thomas has different origins. So ideologically, their foundations are quite different. But they share a common tactical and strategic outcome, which is to, they dont believe in the legitimacy of the state of israel, they seek its destruction. They are not ideological bedfellows, is probably the best way to describe it. So the links between them, where they are close, they are transactional shery what is the rule of iran all of this . Roger he run of his leash share the same names as hamas and hezbollah. He run six to spread its influence around the region. Iran seeks to spread its influence around the region and uses proxies is the term advisedly, because groups like, send hezbollah have their own agency, they have their own domestic constituencies, but they rely to a large degree on iranian funding and political support. So they share the common name that is referred to by the secretarygeneral of hezbollah as all being an islamic current. All proceeding down the same path down the river. That is not a bad way to describe the relationship between these groups. Haidi are there any diplomatic avenues left . Because we see the u. S. Desperately at this point desperately trying to prevent a regional widening of this war. Rodger in terms of diplomatic efforts, they will be focused to start with on trying to minimize the impact on civilians in gaza. There is no doubt that the israelis are going ahead with a ground offensive, and it will be a bloodied ground offensive. With the United States and other World Leaders are trying to do is try to limit any kind of outfall among the wider region. We have seen skirmishes on the Northern Areas really border northern Israeli Border between simplicity palestinian groups and hezbollah and Israeli Forces. We also need to understand that this is achieving a tactical a in trying to engage Israeli Forces in the north. They need to retain some assets there, but we also need to understand that there are normally rules of the game that hezbollah and israel normally abide by. The problem, of course, in an era of heightened attention, in a time of heightened tension, if you push the boundaries of the accepted rules of the game, its quite easy to exceed them. Then we start to have a problem in terms of regionalizing a conflict which is still centered on gaza. Haidi we have seen the icc say the International Criminal court say that their made a place to the current conflict. They have investigated previous acts taken in previous conflicts. What do you make of actions from both sides, particularly the israeli side . I wonder that civilian casualties, they are only expected to build if we see a ground assault. Did israels allies reach a point where, i guess, the acceptability or the bandwidth for this conflict comes to meet some sort of threshold . Rodger thats a good question. I think that is what we steeply out in the next days and weeks once the ground phase of the operation commences. The invasion of gaza has been ongoing for a number of days now, this is just the ground feeds of it, but you are right, its a builtup area with a large civilian population who are still there. That kind of ground favors the defender and also means that you need to deploy a larger number of forces then you would for open area. What you have a combination of heavily defended urban areas, a large number of Mechanized Forces that israelis will be deploying, a large amount of air power to support those, civilian casualties are inevitable. And in a builtup area, you can just do the math amongst yourselves, we are going to see significant numbers of civilian casualties, regardless of what measures the Israeli Military puts in place to minimize those. At some point, israels allies in the Broader Community are going to say that the risk of civilian casualties has reached a level that they are no longer comfortable with. There will be political and diplomatic rayshard israel. Israel will try to achieve as many of its aims as quickly as it can because it understands pressure from civilian casualties is only going to grow in the next few weeks. Haidi rodger, we appreciate your time. Roger shanahan is a middle east analyst, there with us. Markets are on edge as we await the gaza offensive. The demand for safe haven asset is seeing limited demand. There is the prospect of price swings hunting investors. Lets get more from our chief rates correspondent for asia, Garfield Reynolds. This is almost an impossibility as to how we set up this week knowing that we are bracing for further development from the middle east. Garfield if you look at what went on on friday, you have a move into a series of haven assets, and also into oil. The market was, to some extent, getting ready for, not necessarily of worstcase scenario, but a worsecase scenario into the weekend. That was a possibility, that over the weekend we would get some sort of severe escalation that could send oil prices up and could also cause this one of geopolitical tensions that concerned investors out of riskier assets such as equities, into that can send investors out of riskier assets such as equities, into bond, gold. In times past, including japanese yen. But they didnt go there for an affordable reasons. This morning traders are coming in. We havent had anything that has really moved the needle. Although everybody is still aware that we could get this sort of scenarios that were creating concerns at the end of last week. We havent gotten those yet, so you have a pullback in oil. You have a little bit of a bid for things like the quantitative easing, especially after the election delivered what looked like a straightforward result a bid for things like the k kiwi. At the moment, the market is not seeing any difficulties right now. But as a european day approaches and as we get close to dawn in the middle east, there is going to be a lot more nervousness than there is already. Shery our chief rates correspondent for asia, and mliv contributor, Garfield Reynolds there. Ruby also watching plenty of Economic Data this week including from china. Belle . Annabelle thats right, that is something we will be keeping an eye on this week, is what we get from chinas economy. What investors want to know for china is whether we have started to see signs of stabilization taking hold. This chart looking at the gdp figure, on the year, the figure is expected to tick down. In the latest quarter it is expected to drop to four point 5 . There is a bit of discrepancy between the surveys, the high is that 5. 2 , the low is at 4. 1 . More than a one percent point difference. Point out how much uncertainty there is still in the chinese economy. Yes, there are better signals from activity. But weakness from the property sector. Its about understanding, is the bottom now past for chinas economy and its outlook . Haidi so much for markets to contend with at the start of this week. I am in new zealand, speaking as possibly with former resident Prime Minister bill english about academic challenges initiative raises after its latest general election about the economic challenges the nation faces after its latest general election. This is bloomberg. Haidi new zealanders have picked the centerright government to fight eggert wanted academic challenges in the aftermath of the pandemic. Christopher luxon is set to become Prime Minister after his already warning the lions share of the vote after elections and send it former mr. Bill english joins us now. Fantastic to have your with us. We appreciate your time. Give us your thoughts about this election results, what did the wrong . Or is this an indication of broader bits of the section within, governments around the world in the wake of the endemic and the victim of that tonight is facing economies . The labour party didnt quite switch out of covid, and the type of highly centralized decisionmaking, fairly unpredictable, sometimes chaotic policymaking that went on with covid occurred on after covid. And this was a job to several policy down, to rebuild Investor Confidence and to get people focused well ahead of covid rather than looking back to some of the more extrem policies. Haidi Christopher Luxon has only had three years in politics. Quite extraordinary. He says he has obviously been ceo of air new zealand, he has tons of experience when it comes to m a and negotiations what sort of leader do you think he will be . Bill i think he will be successful because he has got the skill set that is required now in new zealand. We have quite a large current account deficit, one of the largest in the oecd. And the public are looking for just sensible, considered management. There is no doubt that chris luxons got the skills for that. He will have a reasonably straightforward political environment, believe it or than he might have expected. Probably better than he might have expected. In three years, we really have never had a Prime Minister entered politics as recently as three years and then become Prime Minister. But it shows he can learn fast. The job that now needs to be done in new zealand is probably more businesslike and less political. Shery of course, a lot of how he governs will depend on the final shape of government. To that point, one of the surprises this weekend was the big win and return to parliament by new Zealand First. Do you expect Winston Peters to be part of that government . Bill there are some results in the election that have yet to be resolved that might make a difference. Even if it looks like he will be needed for government majority, i think you will find he will find himself in less of a bargaining position that he has done in the last three coalitions he was part of, including negotiations with my government in 2017. Chris luxon, winston parties, the parties are also running pretty reasonable and constructive because they know that the public arent interested in a lot of politics. They have had their raid through postcovid. Its one of the reasons they got rid of the last government, too much politics, less performance. They will have to start sorting out the accumulative macroeconomic problems. Shery one of the challenges seems to be cutting government spending. Is this a good time for such a move, which includes tax cuts . Bill it is surprising, isnt it . Even the incumbent government is a centerleft party, it had some of its signature moves earlier in the campaign which were announced, spending cuts. Its a sense of whether this is the right part of the cycle, and there is more concerned about largescale waste overflowing from covid. That is why i think voters support but the argument that middle income tax cuts should happen. They are under a costofliving pressure. But they believe they can have those tax cuts at the same time as there is a cleanup of government expenditure. So the tax cuts will not be at the expense of Public Services or Public Service performance. Haidi a lot of the challenges following the new zealand economy or confounding the new zealand economy, at the moment, our global. Immigration is expected to add to inflationary pressures, energy costs are expected to worsen inflation pressures as well. Do you think the government, along with the rbnz, will deliver the kind of economic turnaround that is being promised is almost a singular election issue this time . Bill i think it will be a challenge. The right kind of issues are being spoken about. As you say, there are global challenges. Who knows what other supply disruptions you are going to get you have just been talking about the effect on oil prices of the israeligaza invasion. So we are all dealing with a certain set of circumstances. So you have to control what you can. In new zealand, we cant control the quality of government speed. We can do a better job of the energy transition, help take some pressure off prices and speed up the process. There are plenty of choices for the new government to do better, whatever the global circumstances are. Haidi take a look at some of the headlines around the world from this weekend, and its interesting i think that in a lot of media, this government has been characterized as the most conservative in ageneration. You agree with that characterization . And how do we explain the big shift we were in just six years ago . Bill i think there is a pattern around the world that government who think that they can govern with aspirational objectives, and that putting out first releases is the business of government, are going to come under pressure. Now that households are under pressure, there is less of the tailwinds that we have had in new zealand in the past. The chinese economy has some uncertainty. Inflation is turning out to be sticky. Like a brewer else, the central bank has done a poor job of managing the postcovid pressures. It it like everywhere else, the central bank has done a poor job of managing the postcovid pressures. I expect less flag waving and more focus on delivery. They will need to deliver some significant gains, some significant shifts in the performance of Public Services, some progress on the fiscal deficit, some lifts in Investor Confidence or the public will feel let down, and they will suffer poorly in three years time. Shery bill english, former new zealand Prime Minister, thank you very much for joining us. Of course, going through the new Zealand Election results. We do have breaking news at the moment. We are hearing the Biden Administration will tighten sweeping measures announced last october to restrict chinas access to semiconductors and chipmaking gear. The rules aim to close loopholes in last years curbs this is according to people speaking with bloomberg. The Biden Administration will add chaneys chip design chaneys chip design firms to trade restriction list. And they will strengthen controls on selling advanced chipmaking equipment and graphic chips to chinese firms. Again, a bloombergs group that they tighten controls on chinas access to advanced chip track. You are looking at u. S. Futures trading earlier in th hi, im jason. Ive lost 228 pounds on golo. So when my doctor told me i needed weight loss surgery, i knew i had to make a change. Golos helped me transition to a healthier, sustainable lifestyle. Im so surprised just how crazy my metabolism has fired up. I have a trust in golo cause i know it works. Golo isnt like every other program out there, and im living proof of it. announcer change your life at golo. Com. Thats golo. Com. As Prime Minister, i will always accept responsibility for the decisions i have taken. And i do so tonight. But i do want australians to know that i will always be ambitious for our country, ambitious for us to be the very best version of ourselves. I will always be optimistic for what we can achieve together. Haidi australian Prime Minister anthony albanese, speaking after the filled voice referendum. The Prime Minister is facing a struggle now to reunite his country, after his Campaign Promise to include a voice for indigenous people. The referendum failed. Lets bring in guest for more. Ben, not just failed, but failed a lot more badly than i think even analysts were anticipating going into the weekend. Can you breakdown the results and what went so badly wrong . Ben a majority of support across the country and majority of support in the state was needed. It got neither of those. It failed by a significant margin. We are looking at about 60 voting for no and just 40 voting yes. Every state has now rejected the referendum. So instead of getting 4 out of six, it gets zero out of six. The capital of canberra did vote yes. And a lot of indigenous communities voted yes by a significant margin as well. Shery Prime Minister albanese pledged to hold this referendum at the height of his popularity. We have seen his popularity really lunging at the end of the campaign. So what will this actually mean for his government . Ben it will take some time to see exactly what it means. What we know at this stage is that there will be questions raised in his party about his campaigning ability and about his policy direction. But that could be as far as the political damage extents at this stage. There was a poll last week that showed indigenous issues, including the voice of theirs are fairly low down in their priorities at this time. It is the costofliving, inflation problems, and obviously, health and education. So if the Prime Minister can switch his focus to issues of the costofliving, which his colleagues are calling for him to do, there is a chance that might and up not affecting his political outcomes that much. Haidi when it comes to the voice and the process of reconciliation, what comes now . We have seen a lot of Indigenous Leaders take a step back, in fact, going into a weaker silence before they were leaving, any further on what comes next. The Prime Minister said on the referendum night that he intends to continue to protest the referendum and continue the process of trying to raise living outcomes for indigenous australians, who have some of the worst Life Expectancy in australia. We havent seen specifics policy suggestions at this stage. There are reports out today that you might be looking to set up a very personal voice. Just to be in office, where he can receive advice on indigenous australians at the same time from the other side of politics, the conservatives have said they will hold effort referendum on spending for indigenous australians if they win power. He did appear to walk back his promise during the Referendum Campaign to hold a second referendum to give more to put indigenous austrians into the constitution. Shery bloombergs ben westcott joining us from cranbury. We have more on that breaking news from minutes ago. The Biden Administration is expected to tighten sweeping measures announced last october to restrict chinas access to semiconductors and chipmaking gear. For more, bring in chief north asia correspondent Stephen Engle. How will the new rules differ from what we saw last year . Stephen it is simply a tightening of the rules and a slight expansion as well. Obviously, the Biden Administration has been imposing export controls on advanced chips as well as chipmaking equipment to help limit the ability of chinese chipmakers to get those proprietary technologies developed by the United States and its allies possibly into the hands of the chinese military. This would be closing of a number of different loopholes that perhaps the u. S. Government has found that the chinese procurement channels have used, such as third countries. Or Chinese Companies using their affiliates in other countries to purchase such equipment and technologies and chips. So it is a tightening, perhaps led by the Commerce Department to essentially close those loopholes which have allowed chinese buyers to avoid those sections so far. Its not so unexpected. Right now we are hearing from sources that this could be announced by the early part of this week, and it comes at a time where were in beijing, about to kick off the belt and Road Initiative, completely unrelated obviously, but a lot of developing nations leaders are here in this city today, including Vladimir Putin. Haidi there is a lot going on, steve u. S. Secretary of state Anthony Blinken is urging beijing also to use its influence in the middle east to prevent other state actors from attacking israel. How does this place beijing, because we know that xi jinping has tried to play this piece broker role before. Stephen thats right. We had Anthony Blinken speaking for about one hour with wang yi before he flew to riyadh. Blinken is heading to the middle east to shore up arab support for israel at this time of crisis, obviously, in gaza. Blinken is doing that on the diplomatic front. But also this weekend, we had josep borrell, europes top diplomat here in beijing. He had facetoface and meetings with wang yi, chinas foreign minister and top diplomat. We talked to Joseph Morelle on friday, and he was less, total josep borrell, was less committal while on chinese soil about condemning china or not condemning china for not condemning the hamas attack in gaza. He was more muted in his criticism while here in china. But he says he and wang yi agreed that the longterm solution in gaza is a two state solution and palestine. But the immediate crisis is happening, unfolding right now. That the a twostate solution will not be the resolution to resolve the immediate crisis. This is what he had to say. We are facing a critical moment in gaza. And we cannot say that the problem in gaza will be solved by the a twostate solution, because the a twostate solution, the world has been feeling miserably. 30 years ago after camp david, we have not succeeded on this a twostate solution. And what we discussed with the world with our chinese counterpart, is that it is the only solution that can be implemented. So we agreed that we have to work in trying to build on this solution. That is not a solution for the problem that we are facing today. Stephen the rail admitted that the middle east crisis was not on the agenda in his talks here in china, but it came to the fore, obviously, given the development late last week and ended up dominating much of the discussion. That is why he says their political director, henrique mora, will be traveling to beijing to continue the discussions the European Union has with china right now. Obviously, the trade deficit that widened 60 over the last year between europe and china is on the economic front at the top of the agenda, but also the war in ukraine. Borrell talked on friday about how europeans had lost trust in china because of chinas stance with russia and not necessarily condemning the war in ukraine. So this has added a new front, what is happening in the middle east. A new front attack perhaps on china. The Israeli Government has criticized chinas official stance through its statements and through its official state media for not condemning the hamas attack in gaza. So there is to be discussed. We are just approaching the beginning of the belt and Road Initiative forum, the 10th anniversary of that, with Vladimir Putin being here in beijing for the next couple of days. That could also overshadow the developments or the toting that china wants to say of the belt and Road Initiative, which, obviously, the United States in some forms has criticized as being a deathtrap for many developing nations. Shery we will be watching the forum. Bloombergtechtv she bloombergtechtvs chief north asia correspondent Stephen Engle there. According to an exit poll, the platform led former European Council president donald tusk swept onethird of the vote. Together with its partners. The group is set to secure 248 seats in the 460 member lower house. Turnout on sundays vote stands at a record of 73 . Polls have also closed and the vote is being counted in ecuador, where voters are choosing between a socialist and the air to fortune. Luisa gonzalez wants greater control of the economy while her arrival Neighbors Free markets. Soaring crime was a top issue for voters, this was the nations bloodiest president ial election in living memory after one candidate was gunned down while campaigning. Republicans have nominated trump loyalist kim jordan jim jordan to be speaker of the house. This elevates the conservative firebrand in the fractured partys second attempt to risk replace ousted leader kevin mccarthy. He faces challenges to the speakership as his controversial stances he needed more moderate lawmakers in the party. We have more to come on daybreak australia. This is bloomberg. Ldnt be easier. I share my style, size and budget. And they shop just for me. My shopper sends me stuff i feel good in. I keep what works, and send back the rest. Stitch fix. Shery this week we are bracing for results from Goldman Sachs and Morgan Stanley. We saw Solid Earnings from j. P. Morgan and wells fargo, both gained ground on fridays session. Su keenan joins us now with the latest. There were three banks, including citi, and their results were pretty strong. Su about as strong as you can get. They were up 34 . Yet, the warnings were acrosstheboard about the fed, about bad loans, about the war that is going on. Wells fargo, citi and jp morgan saw combined profit rise 30 billion, but they rode off nearly 4 billion in loans, nearly double the amount of chargeoffs recorded a year ago. Jp morgan ceo jimmy dimon was out front sounding the alarm, saying this is, quote, the most dangerous time for the world in decades, citing caution is needed given the wars, the soaring debt, and the fed. Quote, while we hope for the best, we are preparing for a broad range of outcomes. Jp morgan posted another quarter of record Net Interest Income in joint wells fargo in lifting its forecast for revenue. Citi had the best Third Quarter in at least eight years, driving revenue past analyst expectations. But we had citigroup also giving details on its most aggressive restructuring in two decades. Executives spent friday fuming about capital limits set up by regulators. This will be a burden on the banks. So that was a big topic of conversation on the earnings call. Haidi there is a lot going on. Give us a preview of what we are expecting this week. Su we have goldman, Morgan Stanley and bank of america, they are following in the heels of this strong profit. They are likely to report strong results. But with differences, goldman is instructed to wrap up its unwinding of different units related to that illfated expansion into regional banking. Bloomberg reporting they have been selling off certain units. Dealmaking is still expected to be less than the best, we know that the current macro has really put a chill on deals for all major investment banks. Morgan stanley has tilted towards wealth and Asset Management under ceo james gorman. Bloomberg intelligent expects this to support their thirdquarter results. Bank of america is the bank with its stock most under pressure, down roughly 20 yeartodate. Analysts say the impact of higher rates will show up in its results and it is suspected to report a profit of . 83 a share, up to. 5 from the same period a year ago, growth, but not much, compared to jp morgan and wells fargo, which magnitudes of that. Bit of red on the screen. We will see how they report this week. Shery bloombergs su keenan with the latest on bank earnings. Sticking with the earnings theme, Bigtech Companies are due to start reporting this week. Lets discuss morning calls and bring in annabelle in hong kong. Bilk tech bigtech has been an interesting sector, we saw the ai hype supporting them. At the same time, the rally in yields continues to add pressure to the sector. What are analysts saying . Annabelle thats right, when you look at the recent performance of big tech, you havent really started to see the impact high yields are having. Certainly there is a lot of investors out there pinning their hopes on big tech, in particular, to lead the rally in the s p 500. You look at the big five that is alphabet, amazon, apple, microsoft, nvidia, they are the heaviest weighting in the s p 500. Bloomberg intelligence crunched the numbers and big tech has the highest Profit Growth estimates out of any group in the s p 500. This is really the sector that a lot of investors are pinning their hopes on. You can see broadly, 34 percent Profit Growth on the year for that group. They are expected to try to prop up the laggards in the s p 500 energy, materials, health care. Investors are optimistic on outlook. Theres a couple of different factors, we have seen big tech, for instance pushing through big job cuts. We also saw good numbers in the second quarter. And then history is a guide, too, because the s p 500 typically rallies during the reporting season, twothirds of the time. Haidi there is at least one when it comes to an earnings rally. Annabelle sher pointedy at least one, out, you look at ai, we have seen a lot of these Companies Really rallying this year on investor hopes that they would gain out of ai. Nvidia is really the only one whose financials are being impacted from it so far. You have also got the valuations of these companies, they are trading at very stretched levels, very expensive stocks youre buying into as well. That puts pressure on these companies to continue delivering their results. One broker pointed out that if they dont actually deliver on those numbers, they will end up losing the interest of investors. Certainly we have earnings kicking off this week. Tesla is one of the first ones coming out on wednesday to kick it off for this week. Haidi Annabelle Droulers there in hong kong. The broader geopolitical overlay to all of this is always in play the imfs managing director Kristalina Georgieva, says shes sympathetic towards the people of israel and gaza, but she knows that other institutions are better positioned to negotiate on the war. She spoke on the sidelines of the imf annual meetings in marrakech. My heart bleeds for the people in israel that were slaughtered. My heart bleeds for the people in gaza but now the civilians, not the militants, the civilians that are paying such a high price. We pray for resolving this conflict as quickly as possible. The longer it goes, the more the risk of spillovers grow. And where we are as a world, we simply cannot afford more uncertainty, more hatred. We are so much into pointing fingers at each other, and we are in a world in which we have to hold hands. So, fast resolution is what would help people, and it would help the world. Can you effect the dialogue, for example, between egypt and israel right now, as we saw in 1967 and along the path of these tensions. Can International Monetary fund provide guidance or assistance to figure out a relationship between israel and egypt over this territory . Our duty of neutrality is there because we have to be able to provide objective policy advice on economic matters to all of our members. There are institutions that are a better fit to bring countries together on the political level than the fund. What the fund is concentrated now on is to very carefully monitor what could be the Economic Impact of a new eruption of tensions in the middle east. So far, what we see is relatively contained. Oil prices are going up and down. But there hasnt been a huge spike. Shery imf managing director Kristalina Georgieva speaking to bloombergs tom keene on the sidelines of the Imf World Bank annual meetings in marrakech. We have more to come on daybreak. 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 here watching daybreak australia. Here are the latest corporate stories we are watching. South koreas financial watchdog is proposing record finds two Global Investment banks for engaging in a negative shortselling, that is a move considered illegal in the country. The watchdog says the Hong Kongbased units of the best conducted naked short sales in several securities between 2021 and 2022. The proposed fines have yet to be analyzed, in the banks identities will be disclosed in future proceedings. Citigroup says banking facilities have resumed after friday. And outage was caused by a technical issue in the data center eased by the lenders. The providers say at investigation will take place. The disruption for the delay expressed by dbs customers last month in processing transactions on of its latest services. Haidi lets take a look at how we are setting up the start of trading here in sydney. Quite a steady tchir in new zealand with the new incoming government. Quite a steady picture in new zealand with the new incoming government. An everchanging landscape comes with challenges. From our vantage point, we see opportunities. As a topten real estate manager, we harness the power of a 360 perspective, delivering local insights and global expertise across public and private equity and debt. Our experienced team and vast network uncover compelling opportunities giving our clients an exclusive advantage. Principal Asset Management. Actively invested. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. Hi, im jason and ive lost 202 pounds on golo. 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