About. Take a look at how we are trading across the region. We are seeing Risk Appetite roaring back about the big swings in bond market in treasuries overnight. The lowest, s p 500 closed since may not helping things. And of course, preexisting concerns over chinas premarket still playing out Property Market still playing out. Were looking at the next stage of the israelhamas war. Despite the release of the two catheters. The benchmark gauge in asia is just keeping its head above water but we are on course for the 11 months, with some of the greater equity really struggling to get back up there. Rishaad absolutely. Case in point, something we have been talking about really is the csi 300. It can a specific benchmark, 0. 05 . We had a very big drop yesterday, we opened lower, there was weakness, through. Then as we were speaking, it is rewriting our headline, reversing most gains. They claim, we talk about that, three 5000 earlier on. 9. 5 . The boj came in. Boj is next week, two, next week and then december 17. Dollar weakness. The prescription is to what pertained for equity markets. We are ending the holiday. Thailand at this hour, 0. 5 . Weakness in the thai baht. The asiapacific benchmark is right now unchanged. 151. 6 four. Four days a weakness. We will see how this ends. Mark cranfield is joining us to talk about everything we have seen. Mark, tell us where your head is right now. He had weakness in the equity market overnight and the s p. You had the web server in the 10year yield. What do you make of the session so far since that point in time . Mark we are getting the same erratic trading recital yesterday. We saw a huge range in treasury yields something we have been seeing frequently in the past 18 months or so, big swings between highs and lows. Yield and a bit lower on the day. You would think that would give optimism to equity markets, but the same erratic behavior were seeing here, obviously in this part of the world, will be dependent on whether outlook is for china. And so far, the etf biting you were talking about earlier has not been very convincing for people as far as china is concerned. They are still looking at other issues like Country Garden. If it signals a default event, credit default could kick in and i could have consequences across asia markets, not just for Country Garden and china as well. So there is still a lot of uncertainty sitting around the areas. Its no wonder that its very hard for people to be convinced one way or the other here they know that yields will stay high for a long time in the United States that will be a big hurdle for them making decisions on the other asset classes, especially equities until they get some clear signals either that china will step in or you will get something positive coming from Central Banks may be another rate cut from china or somewhere else in the region but in the meantime, if this constant battle between bond and Equity Investors the highball volumes are going to will not are going to win out. It will be tough for people to think they can do better than just keeping money in cash and earning 5 of the u. S. Yield. Rishaad and the riskreward going up, the 10year at 5 is really a lot more compelling, i guess, to equity markets. Ill try to tie this back into the china market and let me know what you think. Keep trying to find reasons within china why, this equity market is not rallying, and are there enough reasons, as you laid out. What about the macro environment outside is contributing to the fact that this market cap rally . Rates certainly arent helping the case to google on china. What is your take on that thesis . Mark most investors these days are international and can move their money anywhere in the world right through. A season for china being restricted, the currency is a bit uncertain as well. There are doubts about whether as a foreign investor, you would want to put your money into china right now. Compare that to other parts in the world, transparency is a lot greater in the United States or europe. There might be bigger pockets of value there, particularly in the bond curve. We up among the bond curve in the u. S. , you can get 5 . In europe, not so much. That investors have been looking for a long time at targeting high yields of return so they could put something in their portfolios that will give them a cornerstone to support the rest of their portfolio. They havent had that opportunity in a long time in fixed income. So there are compelling reasons to put some money in europe and in the United States. Not so much. Asia, and china is a big factor with in that. If we seek that here for further chinese authorities are not getting back in the way, not arresting people so frequently, just let the markets behave, that is what investors want to see in china. David stepping away, speaking of stepping away, i will try and crowbar the chinese part of the conversation. The Collateral Damage to higher yields could be boj policy. Is next weeks meeting live . Mark definitely. I think they will push it down the road, december is more likely. I think what is happening is as the jgb yields gradually increase and get higher, they will pass the threshold in the 203040 year rates going much higher. The whole curve has been shifting up. As that continues, it reduces the negative impact. If suddenly the bank of japan were to change policy without yields in the market already having gotten up, the faculty more dramatic. By the the effect will be more dramatic. Better time the bank of japan does something the mliv survey said most likely will be in the first half of next year. By the end, yields will be even higher in japan probably. A lot will be priced into the markets. When the bank of japan finally tightens policy, it will not be as dramatic as it may have been had they died earlier this year with no warning whatsoever. David mark, thank you. In singapore for us. Lets bring in eddy loh our guest, cio of maybank wealth markets. You guys put out a report 24 hours ago. I will read the title. Take us the thinking here. A tale of two risks. What are those risks, and what is the take away the investor . Eddy thanks, david. We published a note outlining the two risk factors affecting markets. The first is the surgeon tensions in the middle east with israelhamas conflict. Secondly, if the rising treasury yields leading to concerns. Given these two uncertainties, we think that investors need to be positioned accordingly in order to mitigate the downside risk. David and accordingly means what exactly, given the risks and your assumptions on those risks, too. Eddy i think may be first on the middle east incident, the conflict, our base case here is we think there is a higher probability that the conflict will be contained within the gaza strip. However, there is a nonremote chance that tensions will escalate, and it could involve even israel, in direct conflict between israel and iran. We expect a sporadic spike in market volatility, until we see clear signs of a potential ceasefire. On the back of that, are and go the crisis could remain volatile so we are urging investors to take advantage of the opportunity in high volatility perhaps through some structured solutions to play this volatility, on the middle east front. But on the yeah. David go ahead. Eddy moving onto the rising treasury yields, what were seeing here is, of course, 10year treasury yield have had 5 for the First Time Since 2007. That is on the back of betterthanexpected u. S. Growth, as well as unfavorable demandsupply dynamics. Rising boj yields does not help demand as well. Now, having said that, we are not sure if the u. S. Economy can continue to tolerate such high yields for a longer period of time. So, at this juncture, we thought at 5 , the risk is looking increasingly interesting for investors. Fixed income investors. There are actually merits to positioning in longer bonds. However, for clients and investors who are more worried about the near term volatility, you could pick up the shorter dated bonds, just for defensive carry. Haidi you actually dont mind some of the rate sensitive sectors like tech . Eddy right, i think we have actually seen that tech sector pulling back a fair bit with the rising treasury yields. In fact, in july, we did warn about some of the attack, especially in the u. S. , valuations looking a little bit excessive. But given the recent events, we are seeing ample opportunities. Still, there is a need to focus on a valuation buffer. Also, you want to focus on companies that are profitable and with strong cash positions, in better position to mitigate higher rates. That would include not Just Companies in the u. S. , but in china. Haidi i wanted to talk to you about china, how do you approach this market at the moment . Because the downward pressure when it comes to sentiment and a lack of confidence just seems relentless. There has to be opportunities there though. Eddy china has been updated disappointing after the covid reopening. I think finance has been quite damaged, consumer or corporate confidence, because of the policy uncertainties that we are facing. Having said that, valuation is really inexpensive. On the policy front, we are seeing encouraging signs to support growth. And macro indicators, there is some pickup in terms of pmi and retail sales as well. We do need to see a more meaningful rebound in the property sector. That is a key sector that is actually holding sentiment back. Over all for china, we would want to focus on areas of resilience. New economy places those are offering increasingly very attractive value. On top of that, some of the state owned ladies, within the energy stateowned plays, within energy or the telco area, that is worth a look. Haidi really great to have you with us, eddy loh, Maybank Group wealth management. Still ahead, will be digging into chinas hospitality outlook, with accors ceo, jeanjacques morin. This is bloomberg. Its easy to get lost in ient research. Introducing j. P. Morgan personal advisors. Hey david. Connect with an advisor to create your personalized plan. Lets find the right investments for your goals okay, great. J. P. Morgan wealth management. Something amazing is happening here. Retailers are moving inventory quickly and securely. Thats because cdw designed and built a solution with cisco security. End to end protection, defends against attacks and makes better decisions in real time. So warehouse and Customer Data stay protected every step of the way. Make amazing happen. Cisco and cdw. Thanks to avalara, we can calculate sales tax automatically. Avalarahhhhhh what if tax rates change . Ahhhhhh filing sales tax returns . Ahhhhhh business license guidance . Ahhhhhh crossborder sales . Ahhhhhh item classification . Ahhhhhh does it connect with acc. . Ahhhhhh ahhhhhh ahhhhhh haidi hamas militants have freed two more hostages, both elderly women from gaza. Calls are growing for israel to rethink the scope of a Ground Invasion and concerns of the fate of some 200 captives. Lets get more from our senior editor. Is there is sand that there needs to be a rethink because there is a possibility with the ongoing negotiations that more hostages. Be free . Bill right, with over 200 hostages still believed to big held. Guys that, there is talk about whether israel should rethink its strategy in terms of great in with Ground Forces into the gaza strip. At least that is the concern you are hearing voiced more frequently in israel, something that seems to be still and the debate. There are expectations that may be additional hostages could released if the Ground Invasion is delayed. There is also some thought that more strategic or a tougher or tighter focus in terms of target might save both civilian lives, and the lives of israeli soldiers. That is all under discussion as officially started to prepare for a likely groundwater and engaged the potential International Response to any escalation in the conflict. And engage the potential International Response to areas gritting the conflict. Haidi china initially came under heavy criticism for its response to the initial attack on israel. We have been hearing from the foreign minister only a. Have we heard any shape for clarification of her positioned . Bill Chinese Foreign minister wang yi said israel has a right to defend itself, he said that in a call with his israeli counterpart. But he reiterated beijings concern that any response follow International Humanitarian law, and that israel makes sure it protects civilians. Those comments from just ahead of what we expect to be wang yis visits to the United States later this week where he will likely meet with secretary of state Antony Blinken and other top u. S. Officials to discuss the ongoing conflict in the middle east, and likely the continuing conflict in ukraine as well. David yes, he will be in washington october 2628. We will be all over that story, of course. Thank you so much, bill faries in singapore. Lets stay clean here, stay on theme, the Virgin Atlantic ceo says that israelhamas war is affecting travel across oceans of the middle east. Some. Work forced to suspend services to tel aviv. After the atrocities of the number seven, the situation is still unpredictable. Right now the major impact has been people are not flying into israel and they are also not flying to the area, can jordan and egypt into other locations. David now, speaking in that same interview, the Delta Airlines ed bastian says the carrier is watching any potential impactor demand as the conflict develops that he also weighed in on where he is the u. S. Economy headed. This has been the most forecasted recession i have been indigenous over 40 years that i think i have ever seen. And as far as i am concerned, i think we will have a good landing, with respect to the confluence of financial variables that we are talking about. We have a consumer in our country that is reasonably in good shape, particularly as you get to the upper end of the income strata. In our business specifically, air travel, 40 of excuse me, 70 of our revenues come from the top 40 of consumers. Consumers that have Household Earnings of 100,000 a year or greater. At deltek, that number is arguably even higher. Version, i would suggest is even higher. That cohort the fed just reached your data last week, but we have been touting this for some time accumulated over 30 trillion of net worth from real estate, the market, savings, from prepandemic to current times. So our consumer is in really, really good shape. The reality is you have winners and losers in this economy, and a good sector that people accelerated purchases during the pandemic, are not really doing as well. If you leave in the experienced economy, who most of us do, its doing quite well. I think we need the alix indicator for this. A. M. In sky miles delta person, i took a lot of trips last year. I am we are describing. We love you. But dont love me yet, we are not doing that this year. I am going to hunker. We are saving. I am an example of what youre trying to get at. How can you be so reliant on our spending . Our planes artful almost everywhere you go, particularly internationally our planes are full, almost everywhere you go, particularly internationally. The other indicator in people is, if you look at a statistic you guys are about the math and the analytics the Airline Industry has a lot going on to your point, g thereu is one number that has proven resilient over 50 years and that isy the percentage of money spent on air travel, and the size of the economy. Is 1. 3 yearin and yearout. It broke through the pandemic because people couldnt travel. But that got, through 2020 and 2022 of people that wanted to travel, the inherent value, the size of the economy versus people that could, that gap is 100 million of people couldnt spend. So we are just trying to get back to normalized strengths. Its going to continue to stay strong. Haidi Delta AirlinesCeo Ed Bastian speaking to bloombergs alix steel and guy johnson. Coming up, new continue to take a look at Consumer Travel and a conversation about hotels in our exquisite interview with accors ceo and why he is staying strong growth across asia. This is bloomberg. You got this. Lets go. Gobble gobble. Ive seen bigger legs on a turkey rude. Who are you . Im an investor in a fund that helps advance innovative sports tech like this Smart Fitness mirror. Im also mr. Leg day. 1989 anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq100 innovations. I go through a lot of pants. Before investing carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. Com. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. Haidi alright, we are watching energy at the moment given some interesting dynamics at play. Youre watching the middle east conflict and some of this pause we have seen it when it comes to that of the Ground Invasion of gaza aptly as these halted negotiations are ongoing. We have had released oil is headed higher. Brent is up 0. 6 , just above 90 a barrel. Trading in new york seeing a bitmap activity met this as saw 90 a barrel after camping 2. 5 in mondays session. This potential rate inking of the scope of the ground and fear of retaliation by militants from lebanon, the fate of some 200 hostages in gaza and other military casualties at stake. We are seeing that translate to broader trading. Taking a look at the other big focus day, they cannot industry. That is feeding through into persistent pessimism. We are looking at Country Garden, it is up just about 4 permit we have had to gain from that in a very negative way, tens of thousands of chinese knives. One of the few bright