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tv   Bloomberg Markets Asia  Bloomberg  November 17, 2022 9:00pm-11:00pm EST

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morning here in hong kong and singapore. 11:00 in tokyo. this is bloomberg markets. yvonne: are top stories, asian stocks edging higher amid investor caution as fed officials warned of more pain ahead as they raise rates to fight inflation. big gains from big chinese tech as investors embrace mixed results for alibaba and netease. jd the next big name to report. juliette: malaysians are set to vote their fourth prime minister in as many years. political uncertainty running high. 6 million young voters could hold the key. rishaad: we have tech, more tech, and hong kong hstech index up nearly 10% this week thus far. the hsi about 5.3% up as well. the alibaba affect, we have a bit of a conundrum with that.
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the mix. -- the federal reserve as ever in the mix. david: third day of gains with onshore china. it is offshore in hong kong that has outperformed the broader chandler -- china rally. it's an up arrow story across the board. stocks are up. also this yield story. we repriced it out, now we are re-pricing it in because the fed has reminded us they have not changed their tune. if only we listened to the fed. we are also getting numbers coming throughout of japan. core inflation came out nearly 3.6%. gdp numbers out of macau. oil closed below $90. brent, to be more specific. it is also about the yield story on the chinese mainland. yvonne: the biggest slump since 2016.
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a little more of that injection of the critique from the pboc. obviously they are watching this very closely. it seems like most people are saying we have seen some upward movement in yields but nowhere what we are seeing globally. we are not going to see material rebound. rishaad: also getting reports that the chinese authorities report on liquidity. this is again another window into what their concerns are about things like companies being lent money, then giving it to the banks themselves at the same interest rate, and it being a balance sheet trick, if you will. yvonne: here is what tech is doing. 7% gains for and meituan. obviously with jd that is reporting earnings, meituan is just a recovery from yesterday. it really is what the fed is saying and what jim bullard said about where rates are going to go. he says north of 5% is more than what rates traders are pricing in. let's hear more now from the fed
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speaker. >> even under these generous assumptions, the policy rate still is not at a zone that might be considered sufficiently restricted. to get to the sufficiently restrictive level policy, we need to increase the policy rates further. >> we are all united in our commitment to getting inflation back down to our 2% target. it is an open question of how far we are going to have to go with interest rates to bring that demand down into balance. we have raised interest rates a lot this year so there a lot of tightening in the pipeline. we have not felt before the effects yet and yet inflation is still very high. rishaad: that is the opinion on rates from fed officials. garfield reynolds joins us now. is it just these guys pulling the market back and saying we have not changed our tune really, come on? garfield: this is the battle
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that has been going on for a while and it will continue between federal reserve officials who are very determined that they will stay the course until inflation has noticeably cooled, and a market that is looking at the damage in the pipeline and saying they are going to slow down, they will slow down because that is what we are used to. we are used to the idea that as soon as the economy shows signs of wobbling, the fed will step into help it out. the most recent couple of incidents back in 2018, 2019, when the fed tried hiking rates and carrying out quantitive tightening and reversed pretty quickly. then of course when the pandemic came along the fed unloaded not just both barrels, but grabbed a bunch of other ammunition and set off all the barrels it could find. so that is the backdrop and the expectation.
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as soon as things get dangerously fed will help us out. the fed is saying no, no, no. look where inflation is. above 7% is still horrendous. we are not about to come off. so when you look at a market, as you said, no instrument is pricing as yet a terminal fed rate above 5%. and yet bullard is saying that is the minimum, we could go higher. so you look at that, you look at where treasury yields are. everything five years or longer is less than 4%. you have got the same come a lot more pain from the treasuries market, and probably a lot more pain to come from the stock market either because the yields are going to go up so much or because we are going to have the kind of slow down that would stop the fed in its tracks because it would start to seriously slow inflation. let's face it, inflation does slow seriously from here, that is because a lot of companies
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and households are going through a lot of pain. david: garfield, thank you. garfield reynolds reminding us to just listen to what the fed is saying. let's turn our attention now to what is happening over in thailand. chinese president xi jinping says the asian-pacific is no one's backyard as he pitches for greater regional cooperation at this ongoing impact summit in bangkok. let's bring in stephen engle. he has been on a plane for the most part, but now he is on the ground in bangkok. i guess as we wait for -- i'm looking at live pictures. we just might get the u.s. vice president coming out of her vehicle any time now. but as we wait for that, talk to us about the conversations there, what are the key issues people are talking about? stephen: against the backdrop of the apac summit coming on the heels of the g20 summit and the asean summit in cambodia, there
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seems to be these geopolitical tug-of-war between china and the u.s. for influence in this part of the world. not surprising. xi jinping following the party congress solidification of his position as president for a third consecutive term. he is on a bit of a charm offensive it this part of the world. he is meeting with about every leader he can possibly can, including fumio kishida yesterday. kamala harris is here to give a speech on behalf of joe biden, who left bali, went back to the u.s. kamala harris is said to be getting a speech mid afternoon today to reassure asia-pacific partners and other nations out here that the united states is committed to its into pacific strategies at a time when an number of critics question the longevity and the dedication to this part of the world. but there is added urgency given xi jinping's comments we got
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yesterday. he was do give a speech at the apac ceo summit yesterday but was canceled at the last minute. beijing did release verbatim of his speech and i will give one snippet from that. he says the asia-pacific is no one's backyard, and should not become an arena for big our contest. no attempt to wage a cold war will ever be allowed by the power or by our times. essentially, the united states has accused china -- well, we know the moves in the south china sea that china has made. they also saw the foreign minister make a number of trips to south pacific islands. they had that strategic deal signed with the solomon items -- islands and you can bet your bottom dollar xi jinping is talking with other pacific island leaders here, including papa new guinea, about some form of strategic or development cooperation going forward. so we will have to see exactly
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what kamala harris has to say but it shapes up to be a very interesting day with other world leaders giving keynote speakers including the french president emmanuel macron giving a speech later this morning, as well as justin trudeau of canada giving a speech on that zero emissions sometime mid day. yvonne: we are still continuing to follow this story when it comes to north korea some lines crossing when it comes to nhk. they say the north korean missile still in the air may fall in japan's economic zone. so basically, it's still in the air. but earlier, they say this may presumed to be an icbm. talk us through the timing of all this. stephen: absolutely. it comes at a very critical time when many world leaders are in this part of the world. so the timing is not surprising to me.
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we have heard from u.s. officials that they are concerned about an imminent, or a potentially imminent nuclear test coming out of pyongyang. this missile launch would come on the heels of other missile tests we have seen of late. this would be an escalation of it if indeed it is an intercontinental ballistic missile, which has long-range capabilities. so this is something i am sure mr. kishida is watching closely, as are u.s. officials who are gathered here. the korean president is said to be here as well, the south korean president. and china it will be watching this as well. rishaad: good stuff. stephen engle there. let's quickly check in with the first word news headlines. twitter closing its offices until monday after elon musk give staff an ultimate him -- an ultimatum to either commit to working long hours and high intensity or just leave. needless to say many workers
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left, potentially putting twitter operations at risk. they also asked them to refrain talking about it. volodymyr zelenskyy appears to have softened his stance that the rocket that struck poland this week was russian. he told the bloomberg new economy form the images suggested the damage could not have been caused only by a ukrainian air defense weapon. nato and the u.s. says it is unlikely the blast was caused by a russian missile, while still laying the blame on moscow. >> i do not know what happened this time. we do not know 100%. i think the world also does not know what happened 100%, but i am sure this is a russian missile. rishaad: the new chief executive of ftx laid out a list of allegations against the company's former leadership, slamming them for nonexistent oversight and misuse of client funds in a sworn declaration submitted to bankruptcy court.
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former enron liquidator said he has never seen such a complete failure of corporate control, also that advisors have located only a fraction of the digital assets they need to recover. and that is a look at the first word headlines. yvonne: still ahead, the moody's senior vice president telling us how -- more on their latest report. david: plus we will be live in k.l. ahead of the elections this saturday night. sr is national -- we'll talk to polster ibrahim suffian breaking down this fairly complex arithmetic ahead of those elections. this is bloomberg. ♪
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rishaad: these are some of the defense stocks as we have this north korean missile which has been tracked at the moment. we reported it is still in the air and it could fall in japan's economic zone. we also have them suggesting the missile is likely to fall some 210 kilometers off the island, which would take it just outside the economic zone, expected to fall at around 11:20 japan time, so another five minutes thereabouts. this is fairly extensive in
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terms of what they are predicting. the coast guard says at the moment they are on full alert regarding this north korean missile falling. while we track that, let's have a look at the malaysian election. it is likely to be close with nearly 1000 candidates from dozens of parties vying for a record 21 million votes. juliette: we have ibrahim suffian with me here live in kuala lumpur. great to have you with us. we are looking for political stability here after what we saw in 2018. how likely is it we will see a stable outcome, and what could a new government look like? ibrahim: at this point in time it is still very uncertain because we have three competing coalitions and each one of them are almost at equal strength drawing strength from different parts of the malaysian electorate. it is very likely that on election night, no single
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coalition will gain a simple majority to form government. so we expect that over the weekend, leaders of these political parties are going to negotiate and bargain with one another to try and form a coalition government that could bench it -- that could potentially take place by monday. juliette: according to the latest polling we have the opposition leader's party ahead, but the malay vote here is very important. how much could we see a swing to the key islamic party? ibrahim: the malaysian electorate geography is urban and suburban cities. enterprises are not the same. in all the polling that has been done, it consistently shows that ibrahaim's coalition will likely gain the biggest share of the popular vote, but does that -- but that does not translate into the same amount of seats. so it is very likely that we might see the islamic party and their allies gain more share of
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the seats going into election day, and therefore, try to form a coalition with either anwar or the current ruling coalition. juliette: when we look at the timing of the election, and it was not supposed to be until september 2023, but instead it was called early. there has been some disappointment, especially since it is being held during the risky monsoon season. how song do you expect voter turnout debate? ibrahim: mage -- voter turnout to be? ibrahim: voting is something people generally look forward to. the monsoon season has not so far created widespread problems in terms of lightening or disruption. so we think turnout will be high, and a high turnout will create unpredicatable results. juliette: what sort of traffic levels are using? ibrahim: the public holiday declared by the prime minister as well as the waiver of toll
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charges has seen an upsurge of traffic, mainly out of kuala lumpur. we've been looking at our survey data, we find turnout is increasing and potentially in the region of about 75% or even higher. therefore, it's definitely going to play into the voter presence on election day. i think this particular election, young people probably will turn up as well. juliette: the voting age for a global audience has been lowered from 21 to 18. that means nearly another 6 million voters heading to the pauls. how much could the young people here determine the outcome? ibrahim: there is an increase of nearly 30% in the number of voters who are eligible to vote now. and most of them, 40% or 60% of voters in malaysia are under the age of 40. and we know among younger people, the tendency is to vote
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against the ruling party. but customs and cultural differences in terms of politics continues to prevail. we know that voters from the minority ethnic groups will probably support anwar's coalition, but -- so this is going to produce a fairly unpredictable result. juliette: we are also of course looking in terms of what other sort of momentum we could see. we are looking at the economy, rising inflation. what do you hear as the key policies that are attempting people's vote? ibrahim: the issues that people are concerned about all over the world is inflation, as well as stagnant wage growth. it has been pretty much the same for the last 2.5 decades. therefore the concern is principally centered on the economy and the kind of policies the government has to bring to address this. the other challenge that
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malaysian voters and the in government -- the incoming government will have to face is how to address the economy and dial down the subsidy regime in place without severely affecting the quality of public services or without raising taxes too much. juliette: what is the likelihood we are going to see a definitive outcome by, say, monday? ibrahim: it is very high. there are three principal coalitions and each of these coalitions have a tendency to work with one group or another. i think the element of uncertainty is the size, or the number of seats that each of these three coalitions win for the parliament. so that probably could determine the configuration, whether it is led by the ruling coalition, for the islamic party and their leader. juliette: the effect of what happened in 2018, malaysians effectively electing in -- their
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fourth prime minister in four years. will we ever see something like that again? ibrahim: i think malaysia is in some kind of transition, from what used to be a very dominant party that ruled over the country for 60 years, and now the populist party is diminishing. new players are coming in. so we are in somewhat uncharted waters. over the next five to 10 years we are probably going to see shakeups in politics. this coalition that could be potentially formed next week, it may be able to stay in place, but it might see changes as well because the ruling party will have already elections within six months. so there could be changes of leadership along the way as well depending on who forms a government. juliette: great to have you with us. thank you so much, ibrahim suffian. of course a lot of going back and crunching those numbers as we have been mentioning. this election is going to be a
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very hotly contested one. yvonne: thank you so much for joining us with that interview. we have plenty more ahead. this is bloomberg. ♪
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yvonne: here is how equity markets are doing as we wrap up the trading week. continue to see gains in taiwan but just marginally. the kospi up .6%. watching reports on this icbm likely to land. it should be at any moment. breaking news here. david: moody's, their risk management unit is shutting its operations in china. it is cutting its staff. this is a bloomberg's group. we are talking 100 people in
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shanghai, beijing, and change and. the credit ratings business in china will continue. to reiterate, they closing offices in beijing, shanghai, and shenzhen following -- essentially a commercial decision. that is according to people familiar with what is going on. the credit ratings business will continue. rishaad: so that is what we have coming through at the moment. wall street struggles with the zero covid policy and these volatile markets, and also the looming threat of state interference. markets and more now. let's check in. these korean defense stocks as we have been monitoring this missile which has reportedly fired from north korea. it was currently meant to land about 210 miles off the coast of
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the economic zone. we do not know if it is landed because as of 10:15 we heard it was still in the air. waiting for more confirmation of this. this, against the backdrop of renewed hawkishness coming from pyongyang. it has been about one hour since that was launched. the news initially broke about at the open in china. it is slow moving. we also understand the south koreans are set to follow you national security council meeting in the next four minutes. this is bloomberg. ♪
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rishaad: 11:29, mo breaking
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newsr about this korean missile launch. ethe prime minister says it probably it landed in the exclusive economic zone, and the japanese coast guard saying it has likely fallen already. tokyo launching a firm protest to pyongyang over the launch of this and all of this as we have the prime minister there speaking to reporters. we are going to monitor the situation there. we're witnessing further saber rattling with kishida saying north koreans are launching provocations at an unprecedented rate. japan going to be lunch break in 10 seconds. we are on the upside. asian chipmakers, those in japan on the way up given the applied materials outlook for the current forecast helping things along for a beleaguered part of the industrial complex. david: how do you pivot this? from projectiles to projections.
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rishaad: that was pretty good. david: capital market assumptions for next year. i mean, making this very simple, 2022 was horrible, so they think that will provide a very good base for perhaps the best potential longer-term return almost cross asset since 2010. as far as their expectations on returns next year, equities, they expect that to be at about 8%. it's really in private markets where they think financial alternatives. shift of the boards where you can see some adjustment higher because in public markets that is expected to be higher. keep an eye on this and whether or not the guys at j.p. morgan asset are correct. it looks like if they are, good on them. yvonne: let's see how things are doing when it comes to the property market as well.
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bloomberg intelligence is doing better but all in all, the run we have seen in property stocks have been quite remarkable. the easing of covid zero measures, also when it comes to this bailout plan we heard from the government a week or so ago. moody's is maintaining the negative 2023 outlook for the property sector. let's get more insight with kaven tsang, senior vp joining us. it is interesting, the narrative has shifted here when it comes to the property market given the 16 point plan. does your outlook change in anyway given what we have seen so far? kaven: yes. thanks for the question. we have maintained a negative outlook for china's property sector which reflects our expectation that property sales will decline by around 10% to 15% in 2023. also, the funding conditions we will expect remain tight for
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financial developers. although the climb is narrowing from the decline that we have seen this year. the 10% to 15% decline is on the high side. and we expect some developers improve liquidity, but it will take time to take effect. david: right. david here, by the way. it does seem this is more to help the developers themselves than really create demand. i want to ask you about what inventory looks like about empty apartments next year, and also where you think sales will be as far as the property market is concern for next year. kaven: in terms of sales, we expect they will remain on the weak side. we expect a 10% to 15% decline
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year-on-year compared to this year. we will expect both will remain largely stable, because weakening supply also counterbalances weakening sales. but having said that, we also see that the level in low tier cities can rate more, given the situation in those cities is much weaker because of their weaker economic fundamentals. rishaad: if you look below the herd if you will, liquidities, on top of that we have seen deterioration of quality but not as markedly as people thought. how are you seeing all this? there is another aspect, the human aspect, which is once bitten, twice shy. give us a sense of how you are reading these companies. kaven: yeah. the liquidity situation for many of the chinese developers has been under pressure since late last year. and many of them remain under
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equity pressure at the moment, given that sales have been declining, and therefore cash flow generation -- at the same time, further pressure. but the latest measure that the government is forgetting to support these developers. some of them could be able to issue onto her back with some government support, and also some of them -- to extend the financing for one year. for -- [indiscernible] we are looking at the fundamentals of the companies.
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yvonne: help us separate that on who is likely to come out of this better and who might have to be caught in this consolidation in the industry as well. how do you separate the winners and losers, and is there more room for credit differentiation? kaven: certainly. in this challenging operating environment, we have seen an increasing degree of credit differentiation and consolidation. developers with a government background have a very strong financial position and they perform better in terms of sales and funding over the past year or so. these global developers we expect will continue to outperform and they will gain the share from those weaker players as well. therefore the fiscal developers we expect to consolidate their sector in the future. david: ok.
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yesterday or the day before we were speaking with ubs, their head of equity research for financials, and essentially talked about how the role of the banks in providing financing here. how are you -- i do not want to ask calculated, but how do you discount the ability of banks to provide financing for these unfinished projects? and how do you determine which of these projects get that backing -- banking financing? kaven: unfortunately, i am not -- on the banking sector. i cannot cover much on the banks but going back on the china property sector, we do see that banks have been providing some financing to complete unfinished projects. some progress has been seen, but still compared to the whole
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situation, remains quite small. what we also understand is those are financial institutions that although -- that also have commercial considerations so they will assess the ability of getting money back after lending to this group of developers. rishaad: kaven tsang there great stuff,. we are going to look at some news. james bullard saying the fed should raise interest rates to at least two between 5% and 5.25%. investors recalibrated bets on how high fed officials would go on rates. jerome powell saying earlier this month that interest rates would need to -- rise more than previously expected. xi jinping saying the asia-pacific region is no one's backyard and should not be coming the arena for a big power contest. in a written speech, xi pitched
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his vision for greater regional cooperation saying any attempt to weaponized relations should be rejected. the remarks weren't released after his in-person speech was canceled. jeremy hunt lining $65 billion in tax hikes and spending cuts. the wealthy will be hit higher, with higher taxes, as well as dividends. a windfall tax on oil and gas companies have been extended. he says it will shrink output by 1.4% of here. nancy pelosi announced she will step down as the u.s. how democrat leader. it comes after republicans secured a slim house majority. the 82-year-old's announcement concludes her history making tenure as the first woman to speak -- serve as speaker and opens the way for a generational change in the party's congressional leadership. >> and with great confidence in
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our caucus, i will not seek reelection to democratic leadership in the next congress. for me, the hour has come for a new generation to leave the democratic caucus that i so deeply respect. rishaad: a dutch court has convicted two russians and ukrainian of carrying out the 2014 attack that down -- it killed all people on board. they sentenced the three men to life in prison but none are in custody. russia said it would study the verdict before commenting. david: let's have a look at alibaba. up about 6% right now here in hong kong. at about a six-week high. we had earnings coming out, a buyback plan suggesting maybe easing of some of these covid restrictions. is it mor growthe, a
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cost-cutting story? let's bring in catherine lim. let's start with the basics. what is the doubt for you with these results? catherine: definitely the cost-cutting surprise jump on the upside. particularly if you look at the numbers itself, international commerce margins, or rather the loss cuts, were up to two thirds compared to the same time last year. that was definitely a standout. the china logistics business losses also narrowed significantly. all of that actually contributed to what i think was the chinese -- we are going to see some black margin improvement, but they delivered. yvonne: they delivered. what about when it comes to delivering margins and lifting those to the rest of the 2023, assuming the number of new covid infections continues to rise? catherine: if we consider the rise in the covid numbers,
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clearly, that is still going to be an overhang on business and consumer sentiment. that is going to weigh on the revenue trajectory for the company in the next three to six months. under the current cost structure we see, which is significantly leaner than what we saw a year ago, that is actually going to continue over the course of this period. and the company is very well-positioned to continue that margins expansion, even as revenue growth slows. rishaad: right. so should we be concerned about the delay in alibaba's completion of this dual primary listing in hong kong? catherine: well, that's definitely going to reignite fears. in the event the u.s. china tensions escalated again, a forced delisting, uncertainty to
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the trading status. but until then, i personally would not be too worried about where things are currently. given that the fundamentals of the company still look healthy. david: let's then preview out with earnings today. all yours. what do we watch? catherine: for, we knew that the company reported another record gmb over the recent singles' day's festivals. so that is going to give them the extra support for margins expansion into this current quarter. and the results from the last quarter were arranged through the merchandise as well as marketing efficiency will be able to expand their profits and margins. so we will see that continuing into this quarter. david: catherine, final question. i want to talk about not so much
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tencent, but what tencent is doing in divesting of their stakes. last year it was this week it was meituan. how does that change operational synergies, and i am borrowing a phrase from our consulting friends. does that change how these companies operate and compete against each other now? catherine: if we can take a step back, tencent and meituan, they are still in a binding contract that will last through 2023 when it comes to the exchange of services, as well as other infrastructure between the two companies. so, in the next 12, 13 months we are not going to see many changes. bear in mind, meituan right now is one of the more established investments tencent has. an meituan, where it is, it is in a sweet spot to --
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the additional push from tencent will not actually have a big impact on the company in the future. yvonne: time to spread your wings and fly. catherine lim, thank you so much, joining us on the latest for all things china tech. coming up, the liquidator who oversaw enron's collapse is now looking into the wreckage of ftx and says it looks even worse. we have the latest revelations coming up. this is bloomberg. ♪
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yvonne: advisors overseeing ftx's bankruptcy have revealed a long list, and they pull in no punches. let's bring in annabelle droulers with the details. they really came out guns blazing. annabelle: it is quite incredible you look at basically the laundry list of allegations being filed to the corporate this is coming from the man who is in charge with cleaning up this mess. he oversaw the liquidation of enron. but when you take a look at some of the things coming out about this in terms of what was misappropriated, firstly,
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software used to conceal or misuse client funds. corporate funds used for personal purposes, things like buying houses for staff members. there was the use of a single emailed to access a lot of personal data around the world. that was also unsecured. you also look at the communication channels, because sam bankman-fried was using apps that that we did everything in a short space of time. just an overall lack of standards and accountability, and he says it's something he has never seen before, ever. so it really does point to a lot of issues with this. of course we are seeing the fallout. just following the likes of softbank, sequoia, among them. david: to maastricht -- annabelle droulers with the latest on the ftx fallout that we are continuing to tally up where we have that information. tim draper, venture capitalist,
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we talked to him yesterday and he said this collapse was predictable because the platform was very centralized. but he told me he is sticking to his production that bitcoin will hit $250,000. have a look. tim: we have always been so excited about bitcoin because it is decentralized. and a token. where ftx was very centralized. it was all centered around this one guy. when you centralize anything, bad things can happen. i mean, putin is a centralized dictator of russia and he went to work. xi -- to war. xi is a centralized leader of china and he locked down shanghai. centralized decisions are not healthy. that is why bitcoin is so good. it was not a central bank, the money was not from any central
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source. it was decentralized and open. and all these copycats that went off and created similar things did not think in terms of decentralizing. so ftx was predictable. we turned down ftx twice at draper associates. david: you bring up a good point, this is trust. a lot of the fallout is down to trust. there's a liquidity squeeze for some other players. what needs to happen to restore that trust? tim: i think it is time, and i think trust in centralized currency should have a little bit of an eye toward, things could go wrong. but decentralized currencies, you do not want to trust centralized systems. decentralized systems work.
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david: can i borrow your analogy? within this world of decentralization, for example, the issue is there, to your point, there are monarchies within this. as an industry player, how do you address that, then? tim: so, as an industry player, i am looking to invest in things that are decentralized. i think there are big opportunities and anything that looks like it has the opportunity to be decentralized. likely dowels. -- like the dows. they are going to bring us through an anthropological leap forward. i like what is happening in smart contracts around it going. i think those are very exciting because they are going to make it so that we do not need as much legal service. we can actually have most of those contracts built into software. and i like what is happening around the blockchain.
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david: i know $250,000 is your call on bitcoin. when do you think it gets there, and why? tim: and i'm wearing my bitcoin tie. the reason it gets to that and probably beyond, is that it will take a moment when you can buy your food, clothing, and shelter, all in bitcoin. here are the statistics that i know. women control 80% of retail spending. and that is usually the food, the clothing, and the slehter. -- shelter. way back when it was one in 14 bitcoin wallace and now it is one in six. when women realize they can get a discount by paying in bitcoin, when retailers realize they can double their profits by accepting bitcoin, it is going
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to move pretty quickly. david: i have to ask you, your personal wealth, without giving a watch too much details, how much of that is in crypto, and not so much in fia? tim: most of it is in crypto. most of it is in bitcoin. and a lot of it is in a couple of other currencies. but they are the decentralized ones like taser was and others. very little in centralized currencies. and a lot in startups. david: that was david ingles speaking with tim draper. [laughter] this is bloomberg. ♪
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yvonne: let's take you back to live pictures out of bangkok where the apec summit is underway. we just saw xi jinping sitting down. the whole mission for him is repairing ties with the region. here in hong kong, here in bloomberg, we are celebrating pink friday. david: i did not get the memo. rishaad: here we go.
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well, we fell in love through gaming. but now the internet lags and it throws the whole thing off. when did you first discover this lag? i signed us up for t-mobile home internet. ugh! but, we found other interests. i guess we have. [both] finch! let's go! oh yeah! it's not the same. what could you do to solve the problem? we could get xfinity? that's actually super adult of you to suggest. i can't wait to squad up. i love it when you talk nerdy to me. guy, guys, guys, we're still in session. and i don't know what the heck you're talking about.
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haslinda: we got there in the end. almost 11:00 a.m. in shanghai. welcome to "bloomberg markets: asia." i am haslinda amin. rishaad: and i am rishaad salamat. asian tech stocks lead things higher. alibaba's earnings as a recovery story despite its revenue list. north korea ratcheting up tensions. japan says an icbm landed inside its exclusive economic zone. and twitter locking stuff out of its office after elon musk makes an ultimatum on a hard-working environment. haslinda: asia traders looking past what we get from the fed and that may require higher rates to rein in inflation. technology getting the benefit of that, tech stocks are
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rallying in hong kong. asia tech surged as much as 4%. alibaba and tencent surging at this point in time. the kospi up by 0.5%, australia also high. we are keeping an eye on the csi 300 index. china saying that gdp could come in at 5% growth again, front and center for china. growth they say could be higher than 5% if we see that impact from an exit of covid zero. we have the dollar easing, giving us strength to asian currencies. the kiwi dollar currently up by 0.5%. we are keeping an eye on the yen as well. it is a list for wti crude, coming up by 0.9%. optimism from china easing from those restrictions and in the bond market, yields rising as
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bonds get sold off. remember bullard says perhaps rates will need to go to at least 5.25% to rein in inflation. warning about further financial stress ahead. the notions of warnings are out there. rishaad: just going to take a look at the open and things are unchanged. thailand hosting that apac summit, a bit stronger. we have the set unchanged. looking forward to foreign reserve data. looking at that and also looking at india as we have the country seeing a little bit of ground against its american counterpart. repeat trading starts in 23 minutes. a lot of what happens in this part of the world will be determined by what a fed -- what
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fed officials do and they continue to make the case for further interest rate hikes and they will do that again as we witnessed the hottest inflation in decades. here are some officials speaking out. >> even under these generous assumptions, the policy rate still is not in a zone that might be considered sufficiently restrictive. to get this level of policy, we will need to increase the policy rate further. >> we are united in our commitment to get inflation back down to our 2% target. it is a question of how far we will have to go interest rates to bring that demand down into balance. we raised interest rates a lot this year so there is a lot of tightening in the pipeline we have not felt the full effects yet, yet inflation is still high. haslinda: the question is, is the markets getting the right message? believing that the policy rates
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will not get higher. let's bring in sonal desai, executive vp at franklin templeton. the markets are still thinking there could be a pivotal easing from the fed. sonal: thank you for having me. essentially the market is fighting the fed and historically that has not ended well for the market. what's the market is hoping is that the fed will follow it, which is why we are seeing 10 year treasuries rally as much as they did. and the fed is pushing back hard. haslinda: how might this play out in the market if there is disappointment? we heard from the likes of ism at the form yesterday that we are seeing -- we have seen false dots before. sonal: that could be a huge disappointment and when you see 10 year treasuries, the deepest most liquid market in the world
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rally 25 basis points in a few days, this is sentiment driven. it is not based on any fundamentals, so i would fully agree and i think we will see volatility when the market sells off again until the market absorbs what the fed is saying. rishaad: sonal, you alluded to it in part, but give us a sense that we get a pivot but it is not the type of pivot people are generally thinking. give us your analysis on this. sonal: in some ways, it is not a pivot at all. the fed has been saying the same thing. 2.5 weeks ago, chair powell told us to expect the sep's to be revised upwards when they come out in december. instead, the market has revised them downwards. the market expectations have improvised and that is remarkable. the pivots the market is waiting for is not coming.
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if we defined the pivot as essentially the fed moving from hiking to cutting, i think that is not happening at all next year, even. the cuts come in 2024. rishaad: what happened with zero interest of free money is that we built up asset bubbles and sometimes in places. we did not want them. now we have got qt and that affects the bond markets for sure. how far do you think people are not looking at the effect of reversing qe now? sonal: it is not so much that people are not looking at that affect. qt will have impacts without a doubt, but i do not think it is qt that is driving markets right now. looking forward, there is going to be tightening. but that has to happen. the solution is not to reverse on qt, it is for the markets to
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absorb that we are getting to stage where it is going to be not like the last 17 years have been since the global financial crisis. it is a new paradigm. haslinda: given this new paradigm, where do you see new opportunities in the bond market? sonal: i would say when i look at the bond market, we continue to believe that we are going to go through this volatility we are seeing in these days the last several months for a while going forward until the market absorbs the fed's message. that means we like investment-grade, we look at investment-grade bonds giving you 5% or 6%. we look at areas on the short end of treasuries that are attractive as well. we are trying to stay liquid and opportunistically dipping into some of the riskier areas like high-yield. keeping in mind that in spread terms, high-yield probably has another leg to go still.
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rishaad: it is not really about trying to catch the bottom. with yields like those on the table, it is fantastic for some. how do you separate the wheat from the chaff? sonal: that is where you need to get in and do strong bottom up analysis. while i would say this, it is the time for active management. there has never been a better time because it comes down to picking the right companies, strong fundamentals are going to survive. i am not anticipating a massive recession and if we look at sectors like high-yield, the overall sector has improved since the last time we had massive recessions. we are looking at a healthier risky asset class. haslinda: thank you so much for that. sonal desai from franklin templeton. and we are getting reaction from japan after the suspected icbm
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that was fired over korea. the japan chief cabinet treasury saying that the missile violates you and regulations that he believed a north korean missile flew on lofted trajectory. north korea fired a suspected icbm. the last fired and icbm on november 3 which failed in flight. we will bring you the latest on that as we get the details. let's get the first word news with vonnie quinn. vonnie: twitter has closed its offices until monday after elon musk gave an ultimatum to either commit to working long hours at high intensity or to leave. sources say many workers declined to sign onto this pledge, perhaps putting twitter's operations at risk.
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the new ceo of ftx has listed out allegations against of the former leadership, slamming him over nonexistent oversight and misuse of client funds. former enron liquidator john j. ray says he has never seen such a complete failure of corporate controls. he also says advisors have allocated the assets they had hoped to recover. ukrainian president volodymyr zelenskyy appears to be softening on his stance on the pole and rocket this week -- poland rocket this week. the damage suggests that it had been caused by ukrainian defense weapon. u.s. officials say that it is unlikely that russia launched the missile while still leaning -- laying blame on russia. >> the world also does not know what happened 100% on that
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situation. i am sure this is a russian missile. vonnie: global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haslinda. haslinda: still ahead, we will be joined by former assistant u.s. trade representative claire reade for her views and the warning on the u.s.-china relations. rishaad: the banks grapple with the chaos left from ftx collapsing and some are still betting at bitcoin. you are with bloomberg. ♪
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rishaad: there we go, cryptocurrencies. there is a quick view. never in my career have i ever seen a complete failure of corporate controls and a complete absence of financial information. that from john j. ray, the group's new ceo who oversaw the liquidation of enron. those who saw the ruins of ftx laying bare with a stunning list of allegations but bitcoin recovering from its lows as well as ether and solana. indeed those allegations are being brought against the company's former leadership
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front and center. this is a look at some of the key claims. corporate funds used for personal purchases including properties for employees, the single unsecured email used for private keys and sensitive data around the world. most importantly for investors, only a fraction of the digital assets they have bought have been located thus far. despite all of that turmoil, billionaire venture capitalist tim drapers sticking with his forecast that bitcoin will hit $250,000. we asked him about the collapse of ftx and how it was entirely protectable. >> we have always been so excited about bitcoin because it is decentralized. and a token where ftx was centralized, it was all centered around this one guy. when you centralize anything,
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bad things can happen. putin is a centralized dictator of russia and he went to war. xi is a centralized dictator of china and he had locked down all of shanghai. these centralized decisions are not healthy and that is why bitcoin was so good. it was not a central bank, the money was not coming from any central source. it was decentralized and open and all of these copycats that went off and created similar things did not think in terms of decentralizing. so ftx was predictable. we turned down ftx twice at draper associates. >> you bring down a good point which this is trust, and you noted the fall down is down to
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trust. clients are withdrawing money and there is a liquidity squeeze for some of these players. what do you think needs to happen to restore that trust? >> i think it is time and i think trust in centralized currency should have a little bit of an eye towards where things could go wrong. but decentralized currencies, you do not want to trust centralized systems. decentralized systems work. david: within this world of decentralization, the issue also is that there are monarchies within this. ftx is a good example of that. as an industry player, how do you address that? tim: as an industry player, i am looking to invest in things that are decentralized. i think there are big opportunities in anything that looks like it has the opportunity to be decentralized. like the dow's, they will be
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extraordinary for humankind. they will bring us through an anthropomorphic logical -- anthropological lead forward. there are contracts around bitcoin and those are exciting because they will make it so we do not need as much legal service. we can have most of those contracts built into software, and i like what is happening around the blockchain. david: i know it is $250,000. that is your call on bitcoin. when do you think it gets there? tim: and i am wearing my bitcoin tie. the reason it gets to $250,000 and probably beyond, it will take a moment when you can buy your food, clothing, and shelter all in bitcoin. here are the statistics that i know. women control 80% of retail spending.
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that is usually the food, clothing, and shelter. and way back when, it was one in 14 bitcoin wallets for women and now it is one in six. and when the women realize they can get a discount by paying in bitcoin, when retailers realize they can double their profits by accepting bitcoin, it is going to move pretty quickly. david: your personal wealth, without giving out too much, how much is that is actually in crypto and how much is in fiat? tim: most of it is in crypto, in bitcoin. a lot of it is in a couple of other currencies but they are the decentralized ones. very little in centralized currencies. and a lot in startups. haslinda: that was tim draper
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speaking with our very own david ingalls. still to come, elon musk issues a debate for twitter staff to go hard or go home. many choose the latter option. a look at how that may threaten the social network's operations. that is next. this is bloomberg. ♪
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at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect. haslinda: let's take a look at u.s. futures as fed officials hammer home the result in the fight against inflation, with the likes of bullard warning of more pain to come. financial stress. s&p futures currently flat at
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3957. earlier this week, elon musk issued an ultimatum to twitter employees either commit to the new hard-core work environment or leave. sources have told bloomberg that many more workers have chosen to go than expected and that is causing complications. su keenan joins us more and perhaps he underestimated that more people would go for compensation. su: appears he did because sources tell us there are new levels of chaos and confusion. the end of day thursday deadline has passed so many employees were locked out of the buildings and sources tell us headquarters are now closed until monday. this after elon musk ultimately gave the staff the ultimatum to go hard or go home. he either that she told him to either commit to working long hours at high intensity and he talked about 80 hour work weeks that would they would sign a pledge to do so, or to leave in
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a severance package. as mentioned, sources say so many workers declined to sign up and make the pledge that it potentially puts twitter's operations at risk. at a memo reviewed by bloomberg, also staff were refrained from discussing confidential information about twitter on social media. some of the employees who have been departing are speculating that there are so many of them leaving and many of them left by giving the salute in the internal memo which has become acu sign -- a see you signed by employees that they may have trouble operating systems during normal operations. who is left to run the ship? twitter's future also complicated by a national security review of musk's $44
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billion deal to take twitter private. there are some members of the u.s. government interested in taking a closer look, concerned about the fact that some of the partners in the financing are in the mid east and outside the u.s. the big deal was consummated at the end of october. already we have seen a whole round of problems and it was only two weeks ago that musk decided to let go of half the workforce, had to hire some back because they were critical to operations, and now this. he has put out an ultimatum, many workers disaffected by the extreme change in culture and policy. he wants an end to work from home and other perks such as free snacks and food. a lot of employees feel it is better to leave. rishaad: thank you a lot. a wild start to the new ownership at twitter and indeed
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we will be watching this space closely. i will move to some of the latest business flash headlines. we have got alibaba surging in hong kong, investors digesting unmixed second-quarter results. the losses largely in line with estimates. optimistic on china easing pandemic restrictions. they will also expand a buyback program. alibaba's hong kong primary listing will not be completed until the end of this year. bhp renewing a bid for oz minerals that would acquire the copper assets. this offered after oz minerals rejected bhp's initial bid of $17 a share. boeing saying it is surging up its defense division to put it on the path to stronger growth.
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the chief executive says he is putting forward investment in the space developments business. haslinda: let's get back to markets and take a look at the korean defense stocks on the back of north korea firing a suspected icbm after warning the u.s. on its exercises. korea aerospace currently up to .1%. gains as well for hanwha and lig. and we have news saying that a korean missile violates you and resolutions. resolu- [announcer] imagine having fuller, thicker,
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>> we are trying to find a plan moving forward for china and
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this is what the party congress is calling for, the chance that we have to grapple with inflation. >> can i be a foreign company succeeding in china despite the foreign and domestic politics? the answer to that is getting tougher. >> if we are provided to access to distribution, we would love to contribute to creating a better pension system in china. >> internationally, china's resolute -- reputation is low and we need to work its way out of this and we need a peaceful relationship with the u.s. to do the. >> we should not have any illusions that this one meeting will change things overnight because there have been such deep distrust built up over so many years. rishaad: policymakers and foreign affairs experts speaking at bloomberg's new economy forum. chinese markets just gone for their lunch break, a bit of a mixed bag, but foreigners
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joining in this speculative china frenzy at the moment. have got other foreigners looking much closer at the country as well, some of the funds buying chinese stocks and this is on the bets that we could see the end in sight for covid zero and the like. it is better to travel than to arrive there. they are off for lunch. the nikkei is back with again -- a gain of 0.1% paid haslinda: let's head to the apac summit where stephen engle is there. the focus has to be xi jinping being on vacation but notably absent is his counterpart, joe biden. stephen: that is right,, harris is here instead. she could is here in the
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building as well as 14 other heads of state ahead of the apec forum and, harris will give a speech after 1:00 p.m. on joe biden's behalf, likely to give a pitch to southeast asia and asian pacific nations. the u.s. vision for this region. obviously as xi jinping is there with his wife arriving in bangkok also give his pitch to asian nations after essentially a three year absence from the world stage. he has been in bali for the g20 and now he is at bangkok for the apec summit and he has a number of bilaterals today. he was going to give a speech. let me get my words out correctly. he was going to give a speech to the apec summit yesterday but it was canceled last minute because of those other meetings.
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the traffic probably had something to do with it. there are so many people gathered in and clock for the apec summit and he did release a statement. the asia-pacific is no one's backyard and should not become an arena for big power contest. no attempt to wage a new cold war will ever be allowed by the power or by our times. that is a not so veiled reference to the u.s. as i referred to, harris making her pitch to asian nations. that is xi jinping's pitch as well. we know that the foreign minister of china has echoed similar comments throughout this year including when he passed through a number of policy for -- number of pacific island nations after striking a deal with the solomon islands and there will be other dialogues as china tries to raise its influence in this region. geopolitics always behind every
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discussion we have here about economic development and pandemic recovery at apec 2022. rishaad: you look at at least 80 ballistic missiles fired by kim young this year -- pyongyang this year. they are upping the ante. tell us about the responses and why. stephen: already we have had the prime minister of japan make comments on that, essentially saying that they have launched provocations at an unprecedented pace. that is what mr. kishida said this morning from bangkok in a statement. japan has lost a firm protest about this recent missile firing, which japan believes was an icbm or at least south korean officials believe it is a south
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korean -- believe it is an icbm and officials say it like we landed in the exclusive economic zone off the waters of hokkaido, about 200 kilometers off of hokkaido in northern japan. south korea said to be holding a national security council meeting as we talk right now. again the concern coming into the g20 and the apec is perhaps north korea would be ready to have another nuclear test. that is what u.s. officials have told us through the last few meetings and essentially this icbm, if it is an icbm, missile test today was likely in protest of joint military exercises that the u.s. plans to have with its allies, including south korea. obviously pyongyang has said any actions like those are a precursor to war with the united
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states. it is something to watch for and i am sure that the president of south korea and fumio kishida are on top of this. , harris has probably been briefed on this as well. rishaad: stephen engle, stay with us. the former assistant on the white house for china affairs, claire reade, joins us. we had the xi-biden meeting taking place in bali at the g20 gets together. the optics were good in the sense that -- they did not talk trade that much which the optics seem encouraging. claire: i agree they are encouraging but you make a good point. i do not think fundamentally there will be any change in the u.s. or chinese decisions concerning the long-term severe
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competition that they anticipate as well as each side's intention to continue taking assertive steps to protect their own futures whether it is economic security or national security than a more traditional sense. haslinda: i am taking a look at the apec meeting with biden and putin absent. xi jinping does take center stage. is it a missed opportunity for biden to interact and talk about trade and other strategic issues? claire: i think biden made substantial showing coming for us and doing the environmental meeting and demonstrating concrete u.s. leadership in that context. i understand the nose counting that is going on at apec but he
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has his vice president there and i think we will hear the u.s. policy position when she gives her speech. there also were a number of other very senior officials who were there, other cabinet members in the state department and the trade representatives. frankly, i think that is fine. people can make a big deal about it but i do not see it as such a big deal. frankly, apec is an environment for soft kinds of initiatives and experiments. i think it is more important in terms of the continuity of that institution then whether biden was actually here today. stephen: this is stephen engle in bangkok at apec.
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i wanted to know if you feel that the white house has room to relax or pull back on some of those trump era tariffs on the chinese given a warmer environment between xi and joe biden. is that a lever that is worth using? i know katherine tai, u.s. trade representative, probably wants to keep some leverage in negotiations with the chinese going forward. claire: yes, i think leverage with the chinese is always important if you want to make any progress. we have to remember two things. one, the fundamental politics going on in the u.s. as folks begin to focus on 2024 and positioning for the next presidential election, which i think will constrain biden in terms of doing anything that could be criticized. some in the right-wing are already considering criticizing biden for meeting with xi.
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i think that was an important leadership initiative on both sides to calm things down. we do not need miscalculations, a hot war. it does not make sense to have such a hostile environment. it is good for both sides to calm things down, so i think that meeting was very helpful. the other issue i think is going to constrain the consideration on the tariffs is those tariffs were put in place through a legal process in the united states and was based on china having done a number of things that were bad with regard to forced technology transfer, intellectual-property problems, a number of other issues. if the united states let up wholesale tariff reduction occur without china having moved on from those problems, the united states looks weak and inconsistent.
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i do not see large-scale tariff reductions. stephen: politics aside, do you think the end of pacific economic framework -- indo-p acific economic framework, is that a game changer in this part of the world? claire: reports from the region as you are undoubtedly aware indicate that this is definitely a second choice for the leaders of the region. i do think that the proof will be in the eating of the pudding. if there can be agreements forged that facilitate trade and do provide resources for some of the developing world, that actually do improve rules for the important new areas of digital trade and issues of that nature, then i think there will
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be progress and that is important. rishaad: in a congress which lacks bipartisanship, the one thing they do share in terms of a partisanship -- bipartisanship is regarding to china. both parties try to outdo each other in becoming more hawkish against china. is that the biggest impediments now? claire: you make an excellent point. the conflict, if you will, between good policy and favorable or seemingly easy domestic political positions is very significant for the u.s. i think biden's balancing act is going to be trying to maintain good, sound policy and basically
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pushback on some of the extreme anti-china rhetoric. it remains to be seen exactly how he is going to do that because he has to look strong on china at the same time that he beats back crazy ideas that will be detrimental for the united states. haslinda: thank you so much for your perspective. claire reade, former assistant u.s. trade representative for china. let's get the first word news with vonnie quinn in new york. vonnie: thank you. jim bullard says policymakers should raise interest rates to 5.4%. investors recalibrate bets on how high fed officials will go on rates. chair jerome powell said earlier this month that rates will need to rise higher than expected due to disappointing inflation data. australia emergency services are warning that severe flooding in inland regions could last into the new year. three seasons of abnormally high rainfall have left soil so
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saturated that even small amounts of rain are triggering flash floods. the flooding is also hitting crops and elevating food prices. a dutch court has convicted two russians and a ukrainian of carrying out the 2014 tack -- attack that brought down an mh17 airline. the court sentenced all three men to life in prison but none are in custody. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haslinda. haslinda: still to come, we will check in on the plans to emerge carriers into the air india ran -- brand. this is bloomberg. ♪
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rishaad: the markets in india are moving to the upside now, losing a bit of ground against the dollar for the ruppee.
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we have got the banks moving in step with what is happening in markets and we look at tata group because it plans to merge four carriers in india under one brand. our asia transport reported gives us an update from new delhi. what is the scoop? >> top is planning to merge -- tata is planning to merge four of its airline brands in india as well as the local singapore affiliate in india. it has also debated what stake it should take in the combined entity and we are expecting the official announcement to come in a few days. this is good news for tata because it's aviation empire has been struggling for a long time. vistara has never made money,
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and air india has been surviving on taxpayer bailouts and it has been grappling with buying debt. integrating all of these four airline brands could give tata the skill it requires to survive in india's aviation market. it could also help tata capture a good part of the indian market and battle against indigo, which captures more than 50% of the market in india. haslinda: what are tata's plans to revamp air india? any details that we know? >> tata is transforming air india into what the ceo likes to call world-class airline. a big part of that five-year transformation plan is -- so air
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india is considering ordering as many as 300 narrow body jets, which could be one of the largest aircraft orders in the commercial aviation history. air india is also planning to lease 25 airbus jets and 25 boeing jet starting next month and it is also considering raising $1 billion, which could evaluate air india at $500 billion. air india is headed for a major revamp under india's largest controller, tata, and air india has also started acquiring the local venture and merging into india express into a single low-cost airline. haslinda: bloomberg's asia transport reporter. we are days away from one of the most controversial world cups in
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recent history. we head to qatar for a preview of the biggest single sporting event. this is bloomberg. ♪
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rishaad: the 2022 fifa world cup kicks off sunday, bringing in billions of viewers and fans to
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the tiny gulf state of qatar. it is by far the most expensive world cup ever. simone foxman is at the stadium where the action will begin. simone, controversy aside, let's kick off with the mood on the ground. simone: it is certainly very busy. this is a country of 3 million people but some 1.2 million people are going to come here over the course of the event. the roads are pretty clogged in the central areas where the roads are cut off we have seen tourists start to descend and we expect to see more of them in the next couple of days right before the first event kicks off sunday. rishaad: there is no way that spending $300 billion is going to be a good investment if you're asking for a good return, but it is something which has put qatar on the map and perhaps given it sometimes the benefit
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of soft power, as it were. give us a sense of how this investment is panning out. simone: i should note that $300 billion figure, this is all the infrastructure investments in the 12 years leading up to the world cup. that does not just include the stadiums. the stadiums are roughly $10 billion, so a small piece of that overall pie. the other stuff is the expansion of the airport, the construction of a brand-new city at museo, a brand-new modern port, so all of these things are things that qatar says they would have done to a degree but they sped up the pace to prepare for the world cup. that said, this may actually turn a profit for the country. organizers have said that $17 billion in gdp growth, that is what they expect. s&p believes we will get a 5% boost in gdp this year. we will see if these numbers pan
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out if they get the consumer interest when the event begins. haslinda: this is a country of 3 million people. how will it handle the influx of more than one million visitors? simone: it is going to be challenged and that is one of the things we will be tracking as well. the airport has been set up to handle lots of people. remember this is an international hub already but they actually reopened one of the other airports as well, so that is going to be receiving visitors particularly from shuttle flights around the region. we will see roughly 100 daily flights from other regional cities to try and bring people here and some of those people are being encouraged to stay outside of qatar, just come for the game and leave later on in the day. accommodation issue has been a significant one. we have seen the construction of
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lots of hotels but some have not been completed in time. organizers have promised 130 thousand hotel rooms and we are close to that number but not all the way there. regional tourism is something qatar has encouraged and that might get easier for the country to cope with this massive amount of people. haslinda: we know it has been plagued by controversies from the get-go. how has qatar responded? simone: there are two issues. one is the situation around worker rights. there were a series of exposes many years ago about the squalid conditions these workers were living within, unsafe practices overall. that has been changed to a degree. international outcry led to new reforms that qatar put in place that have been loaded by activists that they do not go up far enough.
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there is still concern there with minimum wage at $270 a month. on the other hand, protections for lgbtq people, expansion of women's rights, freedom of speech, those are things we have not seen an enormous amounts of policy changes over the past couple of years. it is likely those things will be a focus on the ground. haslinda: simone foxman in were. -- qatar. getting a look at the markets, looking past the fed warnings of higher rates and to fight inflation. pretty much across the board. that is it for "bloomberg markets: asia." "daybreak: middle east" is next. this is bloomberg. ♪
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folks, it looks like we're gonna have to land this big old bird earlier than expected because it's the xfinity black friday sale. get the fastest mobile service with xfinity mobile. yeah, we'll be cruising in to get the best price for 2 lines of unlimited for just $30 each per month. oh my! plus, for a limited time, get 500 dollars off an eligible 5g phone. even you in 22c. flight attendants, prepare for big savings. drop everything and get to the xfinity black friday sale. click, call or visit a store today.
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caroline: i am caroline hyde.


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