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Speaker 1: Good morning.

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Speaker 2: I'm Brian Curtis and I'm Doug Krisner. Here are the

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Speaker 2: stories we're following today.

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Speaker 1: It's in Stacart making a splash in its debut, shares

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Speaker 1: of the online grocery delivery service jumping as much as

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Speaker 1: forty three percent on the first day of trading. It

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Speaker 1: finished well off that, and we'll get your details on

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Speaker 1: that in just a moment. Bloomberg's Bailey lip Schultz says

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Speaker 1: that the challenge now is for instacart to maintain enthusiasm.

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Speaker 3: That's really what investors and bankers want to see happen

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Speaker 3: is the debut is strong, but it carries on and

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Speaker 3: continues to trade higher. When we look at arm, which

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Speaker 3: is the largest IPO this year, biggest deal since late

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Speaker 3: twenty twenty one, it's actually fallen double digits percentages over

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Speaker 3: the last three sessions. So we've seen actually the majority

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Speaker 3: of bigger deals so far this year trading lower than

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Speaker 3: they closed on that first day pop. So initial excitement

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Speaker 3: has typically this year, again in a choppy market, waned

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Speaker 3: relatively quickly.

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Speaker 1: That's Bloomberg's Bailey lip Schultz. Instacart share surprise to thirty

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Speaker 1: dollars the offering raised six hundred and sixty million for

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Speaker 1: the company, making it the fourth biggest us IPO this year. Now,

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Speaker 1: in terms of momentum, well, one day doesn't make a trend,

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Speaker 1: but we mentioned how high those shares had gotten in

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Speaker 1: stacart shares though finished up just twelve percent.

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Speaker 3: Well.

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Speaker 2: The lawyers overseeing the bankrupt crypto exchange FTX are now

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Speaker 2: suing the parents of Sam Bankman Freed. He, of course

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Speaker 2: is the co founder of former CEO of FTX. The

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Speaker 2: lawyers are claiming the parents, Alan, Joseph Bankman and Barbara

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Speaker 2: Freed used their access and influence within FTX to fraudulently

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Speaker 2: enrich themselves by millions of dollars. We heard earlier today

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Speaker 2: from Bloomberg News senior editor Dave Litk, who tells us,

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Speaker 2: basically based on similar cases, that plaintiffs will likely seek

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Speaker 2: to recover every penny.

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Speaker 4: You can look at the example of the party made

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Speaker 4: off situation where for years it went back to seek

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Speaker 4: money that investors as a fund had held on for years.

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Speaker 4: It's the basic bottom line is that you can't hold

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Speaker 4: on to money that you obtained legally through a fraud.

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Speaker 2: He is David Letka, the Bloomberg News senior editor that

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Speaker 2: really looks a lot at what's going on in the

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Speaker 2: cryptocurrency space now. Sam Bankman Freed will stand trial beginning

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Speaker 2: next month on charges related to the collapse last year

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Speaker 2: of FTX Brian Well.

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Speaker 1: The OECD, Doug says that the world economy is set

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Speaker 1: for a slowdown, and the group's chief economist, Claire Lamberdelli

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Speaker 1: says it's hard to tell how far monetary tightening needs

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Speaker 1: to go to tame inflation. Is Lomberdelli, speaking earlier to Bloomberg, we.

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Speaker 5: Are seeing that monetary policy is working. It is working

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Speaker 5: its way through economies, and we are beginning to see

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Speaker 5: the tie turning on inflation. Your headline, inflation is coming

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Speaker 5: down in some countries also core inflation. I mean, you're

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Speaker 5: right that there's a lot of uncertainty around monetary policy

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Speaker 5: at the moment, quite how powerful it is, quite how

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Speaker 5: long those legs will be as you might expect given

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Speaker 5: a very long period of very low rates and very

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Speaker 5: low inflation.

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Speaker 1: The OECD chief economists there are Claire Lamberdelli. She went

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Speaker 1: on to say that it's important that fiscal policy works

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Speaker 1: in collaboration with monetary policy. But that economies need structural

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Speaker 1: reforms to get growth going. The OECD projection global growth

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Speaker 1: will ease to two point seven percent in twenty twenty four,

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Speaker 1: after an already subpar expansion of three percent this year.

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Speaker 2: Oil prices steady today near ten month high's earlier branch

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Speaker 2: crew top ninety five dollars a barrel for the first

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Speaker 2: time since November. We also heard today on oil from

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Speaker 2: Treasury Secretary Janet Yellen, who said the recent increase should

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Speaker 2: stabilize in time. Here as Yellen speaking earlier to MSNBC.

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Speaker 6: Gas prices are up somewhat. That's not desirable. I think

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Speaker 6: it reflects in parts Serdi Arabia's decision to continue oil

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Speaker 6: supply cuts that it put into effect earlier, and of course,

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Speaker 6: the ending of the pandemic in China, even though China's

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Speaker 6: growth is slower than expected, has raised demand for oil.

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Speaker 6: My hope is, and I think what you see built

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Speaker 6: into market expectations is that they'll stabilizer moved down over time.

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Speaker 2: US Treasury Secretary Janet Yellen. Now regarding the American economy,

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Speaker 2: Yellen went on to say, the labor market is strong,

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Speaker 2: inflation is coming down, and there is a lot of momentum.

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Speaker 2: She also commented on a potential government shutdown. She said

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Speaker 2: the Treasury has not modeled the impact of a shutdown

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Speaker 2: on the economy, which would depend obviously on how long

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Speaker 2: it were to last.

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Speaker 1: Brian and a little bit more here on geopolitics. US

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Speaker 1: Commerce Secretary Gino Romundo said that she was upset when Huawei,

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Speaker 1: the Chinese producer, released a new phone with an advanced

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Speaker 1: chip during her visit to China last month. However, she

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Speaker 1: noted that the US has no evidence that China is

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Speaker 1: capable of mass producing these components. Ramundo, speaking early at

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Speaker 1: a congressional hearing.

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Speaker 7: We're trying to use every single tool at our disposal,

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Speaker 7: BIS enforcement patents to deny the Chinese an ability to

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Speaker 7: get intellectual property to advance their technology in ways that

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Speaker 7: can hurt us. The only good news is there is

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Speaker 7: any We don't have any evidence that they can manufacture

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Speaker 7: seven animeter at scale. And although I can't talk about

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Speaker 7: any investigations specifically, I promise you this, every time we

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Speaker 7: find credible evidence that any company has gone around our

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Speaker 7: export controls, we do investigate.

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Speaker 1: Commerce Secretary Gina Ramando, speaking there the Commerce Department's Bureau

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Speaker 1: of Industry and Security has opened an investigation into Huawei's

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Speaker 1: phone and the purported seven nanimeter chip. Now we say

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Speaker 1: purported because this chip made by China's SMIC, was discovered

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Speaker 1: in a teardown of the handset that Tech Insights conducted

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Speaker 1: for Bloomberg News. It's unclear whether SMIIC has approved has

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Speaker 1: received approval from Commerce to supply Huawei, which has been

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Speaker 1: blacklisted in the United States. A few other stories we

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Speaker 1: are following that we'll get to a little bit later

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Speaker 1: in this hour. Country Garden leaves bondholders in the lurch

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Speaker 1: as interest payments go unpaid. There there is a thirty

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Speaker 1: day grace period, but it still makes investors nervous and

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Speaker 1: doug In Hong Kong, we have this big crypto push.

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Speaker 1: The government has been trying to get Hong Kong to

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Speaker 1: be a hub here for crypto and now we get

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Speaker 1: a blunt warning on that police arresting eight people over

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Speaker 1: conspiracy to defraud people. It's the JPEX platform that is

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Speaker 1: in question here, and it has expressed some disappointment of

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Speaker 1: Hong Kong actions.

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Speaker 2: Yeah, I saw the police were able to seize millions

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Speaker 2: of dollars in assets that would include some property and

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Speaker 2: jewelry as well. If you're talking about economic headwinds, I

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Speaker 2: think we have to remind ourselves, Brian, that in a

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Speaker 2: couple of week, American consumers will be required to begin

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Speaker 2: making payments on some one point six trillion dollars in

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Speaker 2: student loan debt. That's after that three year moratorium. And

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Speaker 2: I saw an estimate today economist saying this could curb

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Speaker 2: consumer spending anywhere from nine billion a month to seventy

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Speaker 2: billion dollars a year.

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Speaker 1: Yeah, that is looming. And in fact, one of the

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Speaker 1: first questions I'll put to Nancy Daoud is coming up

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Speaker 1: with us. I always enjoy getting her views from Americprize

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Speaker 1: Financial is are we going to learn this week that

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Speaker 1: there's some fear about something being broken, perhaps as a

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Speaker 1: result of what the FED has done, perhaps as as

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Speaker 1: you mentioned some of these other developments. And so we'll

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Speaker 1: get to that in a few moments when Nancy joins

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Speaker 1: us live here on the program. This is Bloomberg. It's

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Speaker 1: time now for global news. In some of the top

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Speaker 1: speeches at the UN General Assembly today, highlighted by Ukraine's

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Speaker 1: President Vladimir Zelenski, at Baxter covers that and has the

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Speaker 1: rest of the global news from the nine to sixty

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Speaker 1: news room.

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Speaker 8: That's Francisco ed, that's right. Brian Zelensky says if Russia

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Speaker 8: is able to succeed and it's in and he.

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Speaker 9: Seeds in the General Assembly Hall may become empty empty

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Speaker 9: if Russia succeeds with its treachery and aggression.

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Speaker 8: And says Russia cannot be allowed to use nuclear weapons.

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Speaker 8: He says the globe should notice Russia's use of food

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Speaker 8: as a weapon.

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Speaker 10: Even now when Russia has undermined the Black Sea Green Initiative.

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Speaker 10: We are working to ensure food stability, and I hope

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Speaker 10: that many of you will join us in these efforts.

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Speaker 8: And Zelensky warns that as a body thinks about climate change,

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Speaker 8: he says nations like Russia could use it as a

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Speaker 8: weapon as well. Putin and She are not in attendance.

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Speaker 8: US President Joe Biden has met on the sidelines with

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Speaker 8: the leaders of five Central Asian countries former Soviet bloc.

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Speaker 11: States, I'm generally looking forward to following up on this

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Speaker 11: medium because we are stronger and I generally believe the

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Speaker 11: world is safer when we stand together, are five.

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Speaker 8: Nations, and then in front of the General Assembly talk China.

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Speaker 8: We seek to.

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Speaker 12: Responsibly manage the competition between our countries so it does

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Speaker 12: not tip into conflict. I've said we are for d

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Speaker 12: risky not decoupling with.

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Speaker 8: China and as a U and General Assembly meets this week.

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Speaker 8: Former UK Prime Minister Tony Blair says the countries have

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Speaker 8: an almost impossible job to do.

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Speaker 13: So, even the UN Security Council, when you think about it,

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Speaker 13: I mean it's completely irrational that you don't have Germany

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Speaker 13: or Japan, or India, Brazil, Indonesia, you know, large countries

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Speaker 13: that aren't represented in the permanent structures of the UN.

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Speaker 13: The difficulty is how do you change those institutions when

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Speaker 13: you require everyone's consent to do it.

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Speaker 8: Yeah, Blair exclusively in conversation with David Weston here on Bloomberg.

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Speaker 8: So only one country and the Security Council can blow

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Speaker 8: the action. And Blair also says countries are trying to

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Speaker 8: keep relations with both the US and China while not

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Speaker 8: aligning with either. China's issued a warning the Permanent Mission

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Speaker 8: to the United Nations tell him not to attend an

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Speaker 8: event on the sidelines of the General Assembly dedicated to

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Speaker 8: human rights abuses against ethnic wigers in China's Xinjiang region,

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Speaker 8: even organized by the Atlantic Council and Amnesty International. Now

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Speaker 8: Zelenski's next stop will be Washington, d C. He will

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Speaker 8: meet with House Speaker Kevin McCarthy. McCarthy struck a very

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Speaker 8: combative tone today when asked by a reporter about how

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Speaker 8: the meeting will come down.

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Speaker 2: When you meet with him. Will you commit to another

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Speaker 2: round of funding for Ukraine? Is Zelenski elected to Congress?

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Speaker 3: Is he our president? I don't think I have to

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Speaker 3: commit anything. I have questions for where's the accountability and

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Speaker 3: the money we already spit? What is the plan for victory?

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Speaker 3: I think that's what the American public wants to know.

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Speaker 8: And he says that he's standing by his assertions at

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Speaker 8: a funding bill will pass global news power by more

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Speaker 8: than twenty seven hundred journalists and analysts in over one

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Speaker 8: hundred and twenty countries. In San Francisco, I'm Ed Baxter.

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Speaker 8: This is Bloomberg.

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Speaker 1: All right, this is Bloomberg Day Break Asia. I'm Brian Curtis.

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Speaker 1: Along with Rishad Salama. We are here in Hong Kong.

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Speaker 1: Joining us is Nancy Daoude, private wealth advisor at Americprise

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Speaker 1: Financial and the CEO of Opus Advice. First, we will

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Speaker 1: take a closer look at markets. Nancy, great to have you.

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Speaker 1: I'm curious whether or not you think we will learn

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Speaker 1: the answer to this question this week. Does the FED

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Speaker 1: think or maybe does it know that it's already broken something?

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Speaker 1: But it will take a while to materialize. And I

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Speaker 1: mentioned this because if you remember back to two thousand

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Speaker 1: and seven, stocks hidden all time high, then in July

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Speaker 1: and then look what happened next.

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Speaker 14: It's hard to answer your question definitively. But we believe

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Speaker 14: that Powell and Gang will stay the course and rates

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Speaker 14: are not going to be coming down anytime soon. In fact,

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Speaker 14: although there may be a pause this month, we really

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Speaker 14: believe that there will be one more hike this year.

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Speaker 14: But I think it's time also for the FED to

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Speaker 14: start focusing on, you know, how are we going to

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Speaker 14: exit all of this? You know, now that we've combatd

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Speaker 14: inflation and we've been somewhat successful at it, We're not

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Speaker 14: quite there yet one hundred percent, but we've got to

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Speaker 14: start looking at the other side of this now, and

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Speaker 14: that's I think is the big question mark and tomorrow sure.

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Speaker 1: Yeah, quick follow. I mean if we get a hint

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Speaker 1: from the Fed that you know that they're done. Well,

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Speaker 1: that's scare the market a little bit in that it

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Speaker 1: may go to that first question, that they realize that

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Speaker 1: there's something lurking there that has already broken.

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Speaker 14: I don't think so. I don't think that that will

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Speaker 14: be the message tomorrow. I mean I could be wrong

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Speaker 14: and we could all be surprised, but I don't think

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Speaker 14: that that will be the message tomorrow. I think it

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Speaker 14: will be important for them to announce or give us

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Speaker 14: some clue as to what's coming up in twenty twenty four.

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Speaker 15: So, as you said, Nancy, people are now trying to

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Speaker 15: look through the other side as it were here and

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Speaker 15: what happens when they're done? And you know a way

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Speaker 15: should you be investing? And clearly we've got fixed income

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Speaker 15: as you but there is income with fixed incume and

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Speaker 15: it's a good opportunity to get returns with other premium

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Speaker 15: of stocks and stock risks. Now, tell me where are

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Speaker 15: you looking. Is it in the credit space of the

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Speaker 15: sovereign space?

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Speaker 14: Absolutely? Credit, you know, quality is going to be everything

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Speaker 14: in this scenario. There's definitely a nice opportunity for the

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Speaker 14: returns without the risk with stocks, retail and banking sectors

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Speaker 14: are probably the highest risk. I would look more towards

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Speaker 14: energy that seems to be a lower risk, but emphasis

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Speaker 14: absolutely on credit versus duration. And also munis may be

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Speaker 14: a nice opportunity now, especially if the Fed pauses. Munis

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Speaker 14: are positioned to do well, especially with high your text brackets.

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Speaker 1: You mentioned that there's a mild recession that's still kind

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Speaker 1: of in the picture for you, but that you're not

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Speaker 1: expecting anything too dramatic. When we get a news story

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Speaker 1: today like Amazon planning to hire two hundred and fifty

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Speaker 1: thousand logistics workers, is that more bullish for the economy

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Speaker 1: than it is for Amazon itself given the costs, or

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Speaker 1: is it bullish for both? How do you read it?

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Speaker 14: It's really very difficult to read because on one hand,

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Speaker 14: they just made that announcement, but earlier in the year

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Speaker 14: they were laying off thousands of people as well, so

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Speaker 14: it's just a balancing act and maybe they're just shifting

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Speaker 14: the workforce.

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Speaker 1: You know.

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Speaker 14: The big key here is that we are starting to

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Speaker 14: see some of the effects of inflation and all of

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Speaker 14: the FED rate hikes, and credit is tightening and the

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Speaker 14: money supply is going down. I mean, liquidity is definitely decreasing,

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Speaker 14: and that's I think is more of concern for coming

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Speaker 14: up next year.

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Speaker 15: Well, absolutely, that's surely one of the reasons why we're

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Speaker 15: seeing that, you know, fixed income or should I say

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Speaker 15: the treasury market so buoyant in some ways in terms

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Speaker 15: of yields. Of course, it's been crushed in terms of price.

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Speaker 15: Now with that in mind, is it down to perhaps

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Speaker 15: what people are factoring in terms of FED policy. Is

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Speaker 15: it really genuinely reflecting what's going on with inflation or

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Speaker 15: is it ultimately a function of that liquidity tightenness and

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Speaker 15: also of course quantitative tightening itself, which is also perhaps responsible.

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Speaker 15: Plus I'm going to go sorry, this's a long question.

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Speaker 15: Plus plus also there's massive issues of corporate bonds that

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Speaker 15: we've seen of late.

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Speaker 14: It's all of the above, quite frank, I mean, I

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Speaker 14: can't even begin to start to repeat everything you just said.

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Speaker 14: But a mild recession is still on the table, even

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Speaker 14: though it will likely be very short and allow nothing

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Speaker 14: too major like what we saw in two thousand and eight,

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Speaker 14: because it's a completely different environment. You know, going from

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Speaker 14: a zero to five and a half percent interest rate

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Speaker 14: was a very significant move and it's a drastic change,

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Speaker 14: and global cooperation has stopped altogether. There's a lot of

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Speaker 14: home shoring, Inflation is stickier than everyone thought all of this,

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Speaker 14: and energy prices are going up are rising. So I

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Speaker 14: think at some point we all have to expect that

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Speaker 14: the day of reckoning is going to come. The questioning

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Speaker 14: The question becomes is how bad is it going to be?

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Speaker 14: Or will there be enough positive things to upset it?

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Speaker 8: Yeah?

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Speaker 1: Yeah, so I know there was maybe something isn't exactly broken,

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Speaker 1: but we just need to make a few fixes here

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Speaker 1: and there. We're about Asia, so we got to ask

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Speaker 1: you about China and Japan.

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Speaker 8: First.

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Speaker 1: China, a lot of issues there. You highlight the political troubles,

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Speaker 1: the weak economy, the high levels of debt. Can you

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Speaker 1: touch it well?

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Speaker 14: Yes, I think that that's ultimately being the second largest

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Speaker 14: GDP in the world. I think that that's going to

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Speaker 14: affect the rest of us with what's going on there.

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Speaker 14: I think that there's a lot we don't know, and

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Speaker 14: that's even worse. The hidden is really very very scary

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Speaker 14: for the rest of us. But the interesting part is

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Speaker 14: Japan is now looking very positive. You know, it's got

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Speaker 14: the lows, you know, the low valuations, a low leverage

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Speaker 14: on balance sheet, low interest rates, low political risk, low

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Speaker 14: structural changes. So all of that provides a good opportunity.

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Speaker 14: But we have to remember that everything there's nothing that

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Speaker 14: happens fast in Japan. Everything is very slow, and the

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Speaker 14: mindset of the regulators in Japan have changed, has changed

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Speaker 14: to the direction of pushing some return on investment for investors.

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Speaker 14: They were never really interested in that before.

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Speaker 1: Yep, yep, absolutely, we may get some clues from the

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Speaker 1: Bank of Japan this Friday. In fact, a lot of

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Speaker 1: investors on this show said they're looking forward to that

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Speaker 1: meeting even more than the FED meeting. Nancy, thanks so

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Speaker 1: much for joining us. Nancy Daoud, private wealth Advisor, Americprise

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