Losses after strong u. S. Job openings ratchet up wall streets [indiscernible] hitting multiyear highs. The yen is surging from its weakest levels in a year amid speculation japanese officials intervened to slow the currency slide. Plus a republican revolt dumping Kevin Mccarthy as House Speaker, sending a fractious u. S. Congress and to further disarray. Media reports suggesting he will not run for office, for the post again. We are just getting some numbers when it comes to south korean Industrial Production crossing the bloomberg for the month of august. We are seeing a big beat when it comes to Industrial Production. Seasonally adjusted monthtomonth number, 5. 5 against expectations of. 2 and really bouncing back from the contraction of 2 we saw in the prior month. When it comes to Industrial Production, the year on your number, that is a bigger year number, that is a bigger fall than expected, about half a percent. Expectations were a fall of about 6 . A better outcome than expected versus that revised 8. 1 contraction in july. We saw the industrial output number rising 5. 5 against the contraction of 2 in july there. The cyclical leading index was unchanged month on month at 0. 4 Percentage Points in july. Shery take a look at how u. S. Futures are trading early in the Asian Session, not a lot of movement after we saw pressure in the new york session, we had almost every sector in the s p 500 in the red. A lot of volatility given that yields continue to surge to new multiyear highs. The vix, at one point surpassing the 20 level, the highest level in 16 months. It just settled a fraction below that. It was the resilient labor market data and more hawkish commentary coming from fed officials that really talked about that higher for longer narrative continuing, sending yields higher, the 10 year yield and 30 year yields now at the highest level since 2007. Lets take a look at the data. It was really the jobs openings in the u. S. Topping all forecasts for the month of august. Those positions available at 9. 61 million, which shows you the resilience of the labor market. Hiring was up. Layoffs were sort of low. Gains in the job market, coming in the professional and Business Services sector. All of this is making traders thank, where does the fed think, where does the fed goes from here . It seems to be the longer for the higher for longer narrative continues. Annabelle they are still playing out the key rates elevated for some time. That is playing out this morning as we take a look at the open. Bond underway. Yields ticking higher. Stocks today, you mentioned the bearish sentiment coming through. Aussie stocks, into their Third Straight day of losses. 3 . The ausie dollar, you can see the story of Dollar Strength coming through. We are below the . 63 level versus the greenback. Lets change on take a look at what else we are watching in the asian market landscape today. Kiwi assets, very much still a focus. We have the rbnz decision later this morning. The expectation is, yes, a hold, but what is called a hawkish old. The rbnz may flag the risk of further hikes ahead. Kiwi bond yields, moving higher. Chinas shut today for the golden week holiday but hong kong is watching the price session because it helped drive down the broader benchmark. We are actually trading at the lowest level this year for asiapacific stocks. Have erased all the gains we have erased all the gains we have made here since march. The 150 level, it is back off that, but here is haidi for more details on why. Haidi it is about the yen, it is about treasury yields. It feels a little bit like groundhog day. Garfield reynolds is here. Not much has changed in terms of watching levels, wondering if they are overdone. Lets start off with the young first. The 150 level. The question is i guess how much they are willing to pay for intervention if we are dealing with an exceedingly hawkish fed. The yen, it is hard to see it rallying sustainably from here unless you either get suddenly less hawkish fed, not quite sure where that would come from, or you get suddenly a less dovish boj. We have some signs of that in the more recent meeting, but there is still a long way away, especially in market terms, from making a shift. That makes the yen vulnerable. The only thing thats restraining it from going to if you had the ministry of finance of japan coming out saying, we believe the market should set the Exchange Rate, then the yen would be on its way to 160 or something. But right now, theres a lot of fear even amongst yen bears that japan could come in. They may have come in overnight either directly by their own currency or perhaps more likely by doing what is called a rate check, where the central bank sort of goes around and asks dealers what they are offering for the yen, which sort of gets them a little bit worried. You then get a lot of those people who have been betting on yen declines on the money on those bets saying, we dont want to risk losing those, if we do get a sudden turnaround. So lets take some money off the table. So weve had the latest warning shots whether they were real or virtual as it were in was going to be a long battle for the yen and how much of a role japans authority has played in helping restrain it from going much past the 150 level. Shery how many times can tsuzuki come out and talk about currency fluctuations . Whats it been, six days in a row now saying the exact same line about the swings . I wonder, aside from that, how much political heat will be on the boj to continue with the ultraloose policy, at what point does it become too painful for the domestic economy and for the japanese public, whose spending power keeps fading . That is a very difficult question to answer. It does seem to be that theres general consensus perhaps within the core doors of power and japan that 150 is a pretty significant level as part as long as the public is concerned. That is going to be too much for Japanese Society and the japanese economy in some ways to really cope with. You are then going to need to to defend that and it is how do you defend that . Will tightening that make the policy less loose . Bringing up the Foreign Exchange bazooka to stop the rot, probably what the japanese authorities are most hoping for is at least some signs of a little bit of weakness in u. S. Data that might rein the fed back in. Shery you know this is a problem when they have when i have japanese friends telling me they cant visit may because the yen is to cheap. Is too cheap. Garfield reynolds, with the latest on the japanese yen trajectory. Joining me now is the global strategist at wells fargo investment institute. Gary, great to have you with us. If you where the boj, policymakers in japan like the finance ministry, how do you best defend the yen while at the same time thinking the domestic economy is not Strong Enough, inflation, wages are not Strong Enough . You put your finger on it. You are looking at the latest purchasing numbers through september we have seen a loss of momentum in manufacturing and in services. Raising Interest Rates at this point creates a headwind for the economy at a time when the we getting the weakening yen destroys everything it supported, travel abroad becomes more expensive. I would look for jawboning for now. Unless the yen moves in a Sustainable Way in a somewhat disorderly market condition. It continues to move lower. I dont think the bank of japan has much choice. Until then the hope has to be with the u. S. That they see a less hawkish fed. Shery the japanese yen at 150 per dollar, how do japanese assets look to you . They look attractive, coming off the rally we saw through much of this year in the japanese stock market. That was reinforcing the view japan was an optimal place to invest. Some of that luster has been removed, as the economy has lost momentum. But certainly asset values in japan have to look attractive in a snapshot based on the Exchange Rate at the moment. Haidi haidi if you take a look at treasuries, haidi if you take a look at treasuries, these things take on a life of its own, but looking at the momentum gauge, oversold, longer data treasuries, are we sort of out of peak when it comes to yields yet for you . That is difficult to say, from a fundamental standpoint, and i focus on the fundamentals more than market terms. There is still additional upside there. We expect to see the decline in inflation we have seen so far this year level out at least for a time. Until the recession that we expect to materialize by early next year begins to bite into Economic Activity and with that inflation itself. With inflation leveling out at a rate above the 2 target rate and a possibility the fed will be coming in with at least one more rate hike, you have to be on guard in the bond market. We think we are close to a peak if not at a peak. There are risks that yield will move a been higher despite the momentum we have seen of late. Haidi when you talk about value and the kind of mismatch opportunities we could see, how do you feel about china at the moment . How do you view the risk premium scenario if you will . We are guarded on china. We expect to see china recover. We are seeing signs of that already. But even more aggressive economic and monetary stimulus from the peoples bank of china, we think that recovery will be a very sluggish one. Clearly china has gone through a difficult period. Valuations in many instances are not attractive. We are guarded on china and for that matter other emergingmarkets until we get to the other side of the Economic Cycle and emerge from a Global Economic slowdown by early next year. Shery we are getting breaking news out of japan. We are talking about the potential intervention from the finance minister. We are hearing from the currency chief, declining to confirm if japan in fact did conduct intervention. That they will respond as always to excessive fx moves. Declining to confirm they conducted an intervention. Going back on the japanyen story, what do you think . We have been debating whether or not it was an actual intervention because the moves happened in the new york trading session and they could actually just have been stop orders and unwinding of positioning once the yen hit 150 per dollar. I would liken it to something of a shot across the barrel. The real substantive action by the bank of japan and japanese authorities will be a change in yield curve management, but thats really down the road. For now at least i think you will hear more talk about intervention. You will see periods of intervention certainly to counter periods of unsettled conditions in the Foreign Exchange market. I think they are in a very difficult situation at the moment. I dont foresee the boj moving away fundamentally from that Monetary Policy. The ball is in the feds court. They are giving every indication of holding lineup rates. We see something break on inflation, hopefully not the economy itself. Haidi always great to chat with you, gary schlossberg. Of course we are just hearing from japan currency minister decline into confirm if intervention was conducted. Commenting they will always respond to excessive fx moves that have a negative impact on japanese firms. It will take into account whether these moves are deemed to be excessive but they are not confirming it. Various factors are being taken into account to judge the fx moves, saying the yen moves are not desirable, the considerations include various factors regarding how they impact firms as well as japanese households. They are not ruling out any options regarding the 4x situation there. Staying mum when it comes to whether an interventiontook place. We have seen the yen surging from that weakest level in a year amid the speculations that intervention did in fact occur. We are seeing the yen dropping now at this point as he has declined to really make a comment on whether or not that intervention took place. Still ahead, new zealands central bank, expected to keep cash rates on hold later today as a nation prepares ahead prepares to head to the polls in about 10 days time. There are reports that Kevin Mccarthy will not run again for House Speaker after losing the job in a revolt within his own party. We are also hearing now that the house is expected to hold that speaker vote october 11, according to gop members speaking. We will get that update, 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 reports from washington say ousted House SpeakerKevin Mccarthy will not be recontesting the position. We are hearing from gop members of saying the house of representatives is expected to hold a vote for the speakership on october 11th. Mccarthy became the first ever to be removed from the job. Bloombergs vonnie quinns following the development. We are expected to hear from him shortly. He is expected to speak. He did not speak to cameras right after the vote. You can imagine, a very shocked former speaker now. It only took 118 sessions of congress. Its never happened before in the history of the u. S. That the speaker has been voted out. The speaker of the house is responsible for the house passing legislation, legislation supported by the majority party, the speakers party. For eight members to vote against him is quite a phenomenal thing. That said, if you remember, back in january, it took 15 rounds to vote him in in the first place. It was matt gaetz who brought the motion to vacate today who really was a sort of a summoning block in that particular episode. So while its not unexpected, at the same time it is pretty shocking that this happened. He got 10 months. According to matt gaetz, the final straw was the continuing resolution this weekend. We work a little bit surprised we were a little bit surprised suddenly the government was not going to be shutting down. Apparently that was the speakers work and something the right flank of the party or what some call the ultraconservatives, the dissidents in this case, were not having. It looks like now there is going to be a vote tomorrow in a week. Goldman sachs came out with a note after the vote and said it could take a few days before the votes actually start and finish. Back in january, that particular vote took five days. Between now and then, legislative activity really sort of grinds to a hope even though we have an interim speaker halt even though we have an interim speaker. Haidi is there a plan when it comes to his successor . There were definitely meetings tonight. We know that for sure. We might hear something from Kevin Mccarthy. He himself although technically he can run again straight, he has told his republican conference he is not going to do that again, he is not going to put them through it. Frankly, he doesnt have anything left to deal with, he gave it all away. Including happenings today. The fact that he was able to to be ousted because one person brought a motion to vacate. That was part of the deal that got him into the job in the first place back in january. He has nothing left to deal with. There are other names being floated around. Patrick mchenry is the interim speaker, hes also the chair of the Financial Services committee, he has said he is not interested but is also a true ally of mccarthy,s are now with mccarthy out of the way, would he be interested . We will have to see. The markets might at least like Patrick Mchenry to continue on because he is a known quantity but there are other names. Steve scalise is one of them. He is also battling cancer so it might be a little bit difficult. Tom emery from minnesota. The whip of the conference, number three in charge. Tom cole, mark green. Who have any of these people can get 218 votes . That is what started this in the first place. The party is so divided and fractured. The democratic minority leader, Hakeem Jeffries of new york, sent out a message saying it is now the responsibility of the gop members to end the House Republican civil war. Shery it is going to be incredibly disruptive. We saw those votes back in january. We are still contending with a potential Government Shutdown come november 17. Markets will be watching this very closely. Very closely. At the very least, it unleashes more chaos. We have 44 days until the government technically shuts down again so we will have to see what happens between now and then. Will there be any speaker, how long will it take to get the new speaker elected . A leadership vacuum is not good for markets or ratings agencies who are already watching the u. S. And its behavior as we know moodys is the only one who has not actually issued a formal downgrade but has issued a warning to the u. S. And Goldman Sachs among others, terry haynes from pangea as well saying that this really raises the odds of a shut down. Terry haynes says the odds are now at 80 . Goldman sachs says there is a higher odds to this happening. At least goldman has an optimistic view in the sense that it thinks more than two to three weeks of a shut down is unlikely because of things like failure to pay Service Members which would be included in the shut down. That just would not be palatable to republicans so they would have to find a way. Haidi bloombergs vonnie quinn with the latest in this turmoil within congress, being thrown into even further disarray with the ousting of Kevin Mccarthy, the first u. S. House speaker to be ousted. We are looking forward to to potentially getting some comments from him shortly. We will continue to watch that developing story and bring you the latest. More to come here on daybreak asia. This is bloomberg. Haidi take a look at currencies at