Shery you are watching daybreak asia live from new york, sydney, and hong kong. Annabelle asia is major market opens. Haidi a big week with centralbank decisions in focus and the dollar is slightly weaker in monday trade. Michelle bullock is taking charge of the rba. Fresh tests ahead for Country Garden with deadlines for bonds. Shery u. S. Futures with a little upside after stocks fell in new york on friday. S p 500 had a weekly loss and nasdaq 100 fell 2 . We are watching many things including triple witching options expirations and anxiety over the fact we do not know how long the auto sector strike will continue and data showing new york and you fracturing unexpectedly expanded with treasury yields gaining across the board with two year yields holding at the highest level in 16 years and Oil Prices Continue extending gains over 90 a barrel after three weeks of gains already it is the supply outlook and reports we got last week including from opecplus that we might see a deficit for the rest of the year and data showing Inflation Expectations surprisingly falling to the lowest level in two years or so, this is university of michigan data and we had Consumer Sentiment rising a little bit actually a little bit of a fall with higher prices not helping Consumer Sentiment and we are seeing Inflation Expectations finally rolling over and falling last month annabelle. Annabelle the question when it comes to Commodity Prices with rising oil is how much it starts building into price pressures later this year but today for the opening with equities a weaker start across the region with sydney futures pointing to a drop of half a percent and kiwi stocks in the red and japan is shut today for a holiday but still keeping a close watch on what is happening with the japanese yen because we are trading around a low against the greenback now and really not much to top it from pushing past the 150 before we approach that boj meeting later this week and more on that in a moment but focusing on china futures of course because weakness continuing to come through the outlook theory different facing the pboc but still the property sector continuing to build on geopolitical issues and a host of other reasons why if you change now the Foreign Investors are continuing to lead the market so this chart here takes a look at connect flows out of china or into china and essentially what we are tracking here is the amount that investors are leading the market so if you look at how much money has been put in over the course of the year with the expectation around reopening it was 32 billion market and how much is being taken out is around 50 at this stage and we can see here this chart taking us back to august and only a handful of days where we have actually seen inflows into this market haidi. Haidi monetary decisions later this week might set the tone for the remainder of the year with the world adjusting to the u. S. Keeping rates high and the fed will kick things off wednesday and powell has acknowledged the backdrop is more favorable than a year ago but has made it clear policymakers are ready to raise rates further if needed and investors will be watching the next policy steps in brazil and paraguay which began easing samples in august and thursday the Monetary Policy train with the boj center stage friday. Our next guest sees no easing on the horizon that could take the pressure off asian currencies joining us now is the chief economist, great to have you with us. Annabelle mentioned oil prices are 30 off the lows and other account commodities being affected by climate and labor market unrest. How much does that complicate the picture for policymakers . It does. The dollar is stronger and their own currencies are we and commodities are all over the place. But the fact that we have gotten supply reductions in oil, i expect policymakers are generally thinking if we have to do something it will be to tighten so the rba for instance on hold but still sounding like if they do anything shortterm it would be to hike rates. Haidi what about the pboc . What is the rest of the world looking for out of china . We have had policies support piecemeal and we will see if the Property Market has truly stabilized but it seems like structurally there is a lot more pain ahead for the economy that for so long has been the edge it of global growth. For me if we can get stability in the economy in a more stable fashion i think it will be a very strong album outcome. Some say you could get a renewed upswing than i do not think that is the case. There are a structural changes that will keep chinese growth much weaker but last weeks data shows the easing steps have been delivered and probably more than 200 individual measures have not been the traditional cutting Interest Rates and spending more fiscal money, its been a different style of easing. There is evidence we are seeing that the economy is starting to stabilize. That would help rebalance the currency story because it has been hurt by the weaker china and stronger u. S. Side and on the china side we are starting to see stabilization. Haidi as an economist would you be doing Something Else . I think the first position is what you can realistically achieve. A school of thought says a lot of it can be resolved by policy but i do not think that is right. The population is shrinking. Gdp per capital is nearly 20,000. It is a middle income economy. The combination of those we think will result in structurally Slower Growth so policy can make a difference at the margin, if china starts to try to grow quickly a could do it for a couple months but then i suspect it would fall back to the slower baseline. Shery we have been hearing more about the potential chappatta can by nation of china japanification of china. There is that story but even the u. S. In the last 100 years as the rate of Economic Growth has slowed i guess we do not have to raise the specter of japan but for the boj i suspect the outstanding policy statement at the moment is this commitment from then to deliver for the easing if required. It seems increasingly redundant and i do not ask do not know if anyone expects meaningful risk of further easing in japan but the question is if or when they start tightening policy and i suspect it is not this year. Shery will they take the weakness of the yen into account . I think so. They will view it as something helping inflation but not necessarily a permanent influence. There has been a global inflation pulse helping inflation in japan rise but it is not necessarily a permanent influence. I think they really want to see the economy is operating on a different pulse and there is more domestically generated inflation in japan. Haidi when it comes to australia with Michelle Bullock at the helm, it is a challenging time and you get the feeling fell on his sword and the hard work has been done. I was focus on the policy task instead of the individual. The rba and whoevers leaving it is doing their best trying to deal the mandate, a big part of which is keeping inflation between 2 and 3 and trying to deliver policy to get if they are when it is not there and the economy has slowed and domestic demand has slowed and we have a New South Wales budget tomorrow we are we will likely see a of spending and reply otori station around spending re prior to fertilization spending. Shery no one expects hikes at the meeting but what will we expect from november or december . Im focused on that meeting expectation the neutral Interest Rate is below current levels. I think eventually we will get fed easing but overall the fed will probably find the longer it goes on with Interest Rates higher and growth is slowing it is not slowing sharp lee and that evidence from the current michael will be them gradually bring the estimate of neutral up and that will validate what is in the market and the way the dollar has been trading. Haidi still ahead, the boj meeting in tokyo with the former assistant governor at the bank of japan will be on with us but before that industrial accident action against u. S. Auto workers in day three with both sides far from resolution. We get the latest next. This is bloomberg. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. That first time you take a step back and see everything youve accomplished. 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 godaddy. I am doing this. With a partner that puts you first. Start for free at godaddy. Com sell shery u. S. Autoworkers continue striking against ford, gm, and still lantus is the uaw union pushes for a dramatic reset of working conditions and wages. Lets get more from our auto to partner reporter in new york. How far part of the sides . Very far apart. Over the weekend, still lantus increased the offer to 821 raise. Gm with a 20 raise, the union is requesting a 36 raise so there is a wide gulf between them at this point haidi haidi . Does that mean we do not have an end in sight for how long this could last . One analyst thought this could last through the end of october. It is hard to know at this juncture. The companies are making some movement. The union not as much. There seems to be a fair amount of disagreement. Uaw yesterday said it was making progress with ford. Today it said it negotiated with gm. Shery how do we tap how do we calculate the cost for both sides . One analysis is if there was a fullblown strike of all the workers we would see 9. 5 billion dollars in the first 10 days but we do not have that. 13,000 workers are striking at three plants, one for each company but it makes up 3 of the u. S. Gdp so any long stoppage will impact the economy. Haidi what are we hearing from President Biden . He is coming out strongly in favor of the union. He says the company should share record profits with them and that is owed the union because they did a lot of concessions for gm and chrysler when they went bankrupt in 2009. Joe biden needs the labor vote in michigan where a lot of these workers are. He took the state in 2020 but only leads by one percentage point in pulling against trump. Shery when we are shifting fast to electric vehicles, where would the breakthrough come from . What is next . The collectively the companies have spent more than 100 billion dollars on electric vehicle programs. A lot is invested into evs and that is why they say they cannot afford the union contract. They could ratchet up the strike from the union perspective. They have taken down one plant at each company. They could go to the big pickup truck plants next, the source of major product profits for each of them. Haidi keith norton in detroit with the latest and we will stay on the strikes. The gm ceo says the offer to the union was strong and the shutdowns could have been avoided. I am extremely disappointed and frustrated that we are at a strike. Gm has an exceptionally strong offer on the table. It is historic and the largest increase from a wages perspective in our history along with worldclass Health Care Benefits and other prevention provisions like job security so when you look at the strike through the agreement we have on the table, we do not need to be here. They have one plant down. It will impact three very important products. The Chevrolet Colorado and gmc canyon are both in Strong Demand and the chevrolet cargo van that does exceptionally well so this has an impact and we will see where they go next. We are ready for this. As we have dealt for covid and the Semi Conductor shortage and other shortages, our team knows how to manage these situations and are staying agile and we will do what is right for the company but this strike did not need to happen. You made a substantial increase offer and the uaw does not want it. You agreed they do need and deserve increased wages. But this is more than that . In terms of your need to move into electric vehicles and they believe moving to those will cut the workforce by as much as 40 . This is a once in a century transformation we are moving from internal combustion vehicles to electric vehicles and gm has so many evs in the process of launching and this is important to securing our futures and we need to get the vehicles out and they are wonderful vehicles and we have waiting lists and orders in place so it is important we need that demand and from a gm perspective for job security, we have jobs for all our people as we make this transformation. Two years ago we started planning for this and one reason why we invested in doing our own power units, a component, we designed them internally and we are allocating that production to the plants that build internal combustion engines now so we have worked carefully to have a job for everyone so we can transform together. Get a round up of all the stories you need to get your day going. Terminal subscribers go to dayb. Customize your settings so you only get the news that you care about. This is bloomberg. Haidi breaking news. Kkr has bought a 20 stake in singtels data center unit. The fund managed by kkr will have the option to raise the state to 25 by 2027 and the fund will commit up to 1. 1 billion for a 20 stake initially in the singtels data center business. Subject to certain conditions including Regulatory Approval and filing this is a transaction not expected to have any impact when it comes to the numbers for singtel for the year ending march 2024 as Telecom Assets are in focus particularly in markets outside the u. S. Including in italy as a well where we hear kkr has bought a 20 stake with an option to increase it up to 25 . Michelle bullock takes over in australia as the First Central Bank governor and they are embarking on the biggest overhaul in decades. Is the rba likely to look different under Michelle Bullock . Near term there will not be a lot of changes but in 2024 we will see a Different Reserve Bank that implements the recommendation of it and be dependent review which suggested to Monetary Policy boards so we will have two separate boards, Monetary Policy and governance so we have 18 members on the board from the two boards included so we will see a lot more people be appointed on the board, the Deputy Governor is yet to be appointed so that will happen soon, we will have fewer Interest Rate meetings, more press conferences and hopefully better messaging in communications. Shery what are her Top Priorities in office . The revamp . She was recently asked what her Top Priorities were and she mentioned that her biggest ones are the fight against inflation, which she described as being still too high and Interest Rates are at 4. 1 percent and economists are predicting another 25 basis point hike this year but it looks like we are near the peak and her second priority is the revamp and implementing their reviews recommendations so also bringing about a change in culture and culturing the atmosphere where debate and respectful challenges [indiscernible] as well. The economy is tracking all right. Four Percentage Points of rate hikes since last may and it looks like the economy is absorbing them well. There were initially fears australia might slip into recession because of these hikes and that is largely because of how indebted australians are, we are amongst the most indebted in the world with close to 200 debt to gdp ratio and that, it does look like people are taking it in their stride, consumption has fallen off a cliff but it is not dire on the job market continues to be strong and unemployment is low so it looks like we will avoid recession and Economic Growth will continue through next year as well. Shery our economics reporter joining us from sydney. Here are the top corporate stories. Ubs cut one dozen jobs in the u. S. Investment job bank last year as part of the integration with Credit Suisse. The cohead of Consumer Products and retail was impacted. The firm is expected to cut hundreds of jobs in asia and could cut more than half of the overall workforce of Credit Suisse. Bond yields arranged by Credit Suisse and bank of america and connected to debt swaps are under scrutiny after the Global Center issued new labeling guidelines. At the heart of the issue are blue bonds using debt swaps to further marine conservation. South korea has asked apple to report on electromagnetic waves being invented from the iphone 12 models after french emitted from the iphone 12 models after french regulators found that devices release more electromagnetic radiation than permitted. They say the issue is not a safety concern at apple. Up next, senior u. S. And chinese officials discuss a possible meeting of the president s later in the year as tensions continue simmering between the two sides after a series of highlevel meetings. Details of the talks in malta are next. This is bloomberg. Its an amazing thing when you show generosity of spirit to someone. And you want people to be saved and to have a better life, then you dont stop. The idea that we have saved five Million Peoples lives, its overwhelming. Its everything. Annabelle this is daybreak asia i am annabelle with a check on markets with 30 minutes for the opens for seoul and sydney, tok