haidi: a very good morning and welcome to "daybreak: australia."

i am haidi stroud-watts. annabelle: i am annabelle droulers in hong kong. we are counting down to asia's major market opens. shery: from bloomberg headquarters in new york, i am shery ahn. u.s. warns iran against escalating the war in israel as washington and its allies step up efforts to avoid a widening conflict. 600,000 gazans have fled south ahead of an expected invasion. new zealand is set to have a new prime minister. industries government faces an uphill battle for unity in the wreck of the field indigenous boys referendum. u.s. futures coming online in the asian session, seeing an upside of about 0.1 percent after u.s. stocks were losing ground in the friday session. markets were bracing for more geopolitical tensions in the middle east over the weekend. so we saw at big-tech selloff over the friday session. treasuries give the ground.

the 10-year yield falling towards 4.6%. that safe haven demand continuing as we brace for more volatility this week. we're also watching oil prices. they are under a bit of pressure after the biggest weekly gain in about a month. we'll wti settling above $87 a barrel. on concerns about a potential imminent ground invasion of gaza. perhaps a bit of support to the markets coming from earnings season. we had wells fargo reporting, wells fargo. they gained on solid results. goldman sachs and morgan stanley reporting this week. we will be watching this result very closely. and we will be watching the reaction to new zealand's and action as well. haidi: yes, it has been a big political week not just here in new zealand, but also across the tasman strait in new

zealand. we had an overwhelming result in the weekend elections towards the national party. looks like the prime minister elect will be christopher luxon, former unilever ceo and with just three years of political experience under his belt. there is a bit of horse-trading to come with their closest ally, the party has the barest of majorities. we will see with negotiations in the next days and weeks to come potentially involving the new zealand first party with mr. peters who has now staged at third come back to politics. really the star lord the lazarus, if you will, of needs and politics. christopher saying he may be new to politics, but he has a lot of experience when it comes to mergers and acquisitions. and when it comes to austria, we saw the overwhelming no vote, very divisive, and at times very

difficult to deal with campaign for the voice referendum. it is now down to prime minister albanese to try to find the unity he had hoped this vote would bring. we will be speaking exquisitely to the former new zealand prime minister as well, bill english, and we will talk about the election results. the challenges ahead for this new government. shery: alright, let's get to over top story. we continue to watch the israel-hamas war. the israeli military seeing some 600,000 people have left gaza city as its troops gear up for a ground war against hamas. meanwhile, the u.s. and its allies are racing to prevent the conflict from engulfing the middle east. bloomberg's michael heath joins us with the new test. israel telling gazans to move out of the north of the enclave. what is the latest on the ground offensive? michael: israel, the idf

estimates that 600 thousand people have left gaza city, as you mentioned, to go south. . basically the expectation is that the ground offensive, when it happens, we'll go into the northern area of the gaza strip, the built-up areas. on friday, israel warned people not in gaza to start shifting south. it is about 1.1 million people there. only about half of them. at this stage, israel is bringing up its reserves. 300,000 soldiers have been brought up in the air gathering around gaza and also in the north where we have been seeing shots fired by hezbollah as well. [clears throat] excuse me. you haidi: mentioned the exchange of fire between hezbollah and israel, something

else we are watching. is this what many are seeing as approved with a widening of the conflict? michael: yes. secretary of state anthony blinken has been doing diplomacy around the region. with that in mind, the u.s. also had back channel conversations with iran where it warned iran to keep hezbollah in check. hezbollah has a lot of troops on israel's northern border. the secretary of state also spoke with egypt's president, the idea being that they could perhaps bring in relief for gazan civilians on the border with egypt and the gaza strip. so the view is that they are trying to keep this contained to israel. the iranians are set that the worse it gets in gaza, the more likely that it spreads. the u.s. has brought in a separate carrier group as well to try to dissuade anyone else from intervening. it's at very tense situation. shery: michael heath with the latest on the ongoing conflict between israel and hamas. our next guest says that without

evidence, it is unwise to assume iran is hamas's puppeteer. with us is roger shanahan, and analysts covering the middle east. roger, great to have you with the how close are the worldviews of hamas, iran, and even hezbollah? we continue to see those attacks. rodger: we have to differentiate between the groups. hezbollah is a creation of iran beginning in 1982. they are both from the sheer side of islam. thomas has different origins. so ideologically, their foundations are quite different. but they share a common tactical and strategic outcome, which is to, they don't believe in the legitimacy of the state of israel, they seek its destruction. they are not ideological bedfellows, is probably the best

way to describe it. so the links between them, where they are close, they are transactional shery: what is the rule of iran all of this? roger: he run of his leash share the same names as hamas and hezbollah. he run six to spread its influence around the region. -- iran seeks to spread its influence around the region and uses proxies -- is the term advisedly, because groups like, send hezbollah have their own agency, they have their own domestic constituencies, but they rely to a large degree on iranian funding and political support. so they share the common name that is referred to by the secretary-general of hezbollah as all being an islamic current.

all proceeding down the same path down the river. that is not a bad way to describe the relationship between these groups. haidi: are there any diplomatic avenues left? because we see the u.s. desperately at this point desperately trying to prevent a regional widening of this war. rodger: in terms of diplomatic efforts, they will be focused to start with on trying to minimize the impact on civilians in gaza. there is no doubt that the israelis are going ahead with a ground offensive, and it will be a bloodied ground offensive. with the united states and other world leaders are trying to do is try to limit any kind of outfall among the wider region. we have seen skirmishes on the northern areas really border --

northern israeli border between simplicity palestinian groups and hezbollah and israeli forces. we also need to understand that this is achieving a tactical a in trying to engage israeli forces in the north. they need to retain some assets there, but we also need to understand that there are normally rules of the game that hezbollah and israel normally abide by. the problem, of course, in an era of heightened attention, in a time of heightened tension, if you push the boundaries of the accepted rules of the game, it's quite easy to exceed them. then we start to have a problem in terms of regionalizing a conflict which is still centered on gaza. haidi: we have seen the icc say -- the international criminal court say that their

made a place to the current conflict. they have investigated previous acts taken in previous conflicts. what do you make of actions from both sides, particularly the israeli side? i wonder that civilian casualties, they are only expected to build if we see a ground assault. did israel's allies reach a point where, i guess, the acceptability or the bandwidth for this conflict comes to meet some sort of threshold? rodger: that's a good question. i think that is what we steeply out in the next days and weeks once the ground phase of the operation commences. the invasion of gaza has been ongoing for a number of days now, this is just the ground feeds of it, but you are right, it's a built-up area with a large civilian population who are still there.

that kind of ground favors the defender and also means that you need to deploy a larger number of forces then you would for open area. what you have a combination of heavily defended urban areas, a large number of mechanized forces that israelis will be deploying, a large amount of air power to support those, civilian casualties are inevitable. and in a built-up area, you can just do the math amongst yourselves, we are going to see significant numbers of civilian casualties, regardless of what measures the israeli military puts in place to minimize those. at some point, israel's allies in the broader community are going to say that the risk of civilian casualties has reached a level that they are no longer comfortable with. there will be political and diplomatic rayshard israel.

israel will try to achieve as many of its aims as quickly as it can because it understands pressure from civilian casualties is only going to grow in the next few weeks. haidi: rodger, we appreciate your time. roger shanahan is a middle east analyst, there with us. markets are on edge as we await the gaza offensive. the demand for safe haven asset is seeing limited demand. there is the prospect of price swings hunting investors. let's get more from our chief rates correspondent for asia, garfield reynolds. this is almost an impossibility as to how we set up this week knowing that we are bracing for further development from the middle east. garfield: if you look at

what went on on friday, you have a move into a series of haven assets, and also into oil. the market was, to some extent, getting ready for, not necessarily of worst-case scenario, but a worse-case scenario into the weekend. that was a possibility, that over the weekend we would get some sort of severe escalation that could send oil prices up and could also cause this one of geopolitical tensions that concerned investors out of riskier assets such as equities, into -- that can send investors out of riskier assets such as equities, into bond, gold. in times past, including japanese yen. but they didn't go there for an affordable reasons. this morning traders are coming in. we haven't had anything that has really moved the needle.

although everybody is still aware that we could get this sort of scenarios that were creating concerns at the end of last week. we haven't gotten those yet, so you have a pullback in oil. you have a little bit of a bid for things like the quantitative easing, especially after the election delivered what looked like a straightforward result -- a bid for things like the k kiwi. at the moment, the market is not seeing any difficulties right now. but as a european day approaches and as we get close to dawn in the middle east, there is going to be a lot more nervousness than there is already. shery: our chief rates correspondent for asia, and mliv contributor, garfield reynolds there.

ruby also watching plenty of economic data this week including from china. belle? annabelle: that's right, that is something we will be keeping an eye on this week, is what we get from china's economy. what investors want to know for china is whether we have started to see signs of stabilization taking hold. this chart looking at the gdp figure, on the year, the figure is expected to tick down. in the latest quarter it is expected to drop to four point 5%. there is a bit of discrepancy between the surveys, the high is that 5.2%, the low is at 4.1%. more than a one percent point difference. point out how much uncertainty there is still in the chinese economy. yes, there are better signals from activity. but weakness from the property sector. it's about understanding, is the

bottom now past for china's economy and its outlook? haidi: so much for markets to contend with at the start of this week. i am in new zealand, speaking as possibly with former resident prime minister bill english about academic challenges initiative raises after its latest general election -- about the economic challenges the nation faces after its latest general election. this is bloomberg. ♪

haidi: new zealanders have picked the center-right government to fight eggert wanted academic challenges in the aftermath of the pandemic. christopher luxon is set to become prime minister after his already warning the lion's share of the vote after elections and send it former mr. bill english joins us now. fantastic to have your with us.

we appreciate your time. give us your thoughts about this election results, what did the wrong? or is this an indication of broader bits of the section within, governments around the world in the wake of the endemic and the victim of that tonight is facing economies? >> the labour party didn't quite switch out of covid, and the type of highly centralized decision-making, fairly unpredictable, sometimes chaotic policymaking that went on with covid occurred on after covid. and this was a job to several policy down, to rebuild investor confidence and to get people focused well ahead of covid rather than looking back to some of the more extrem policies.

haidi: christopher luxon has only had three years in politics. quite extraordinary. he says he has obviously been ceo of air new zealand, he has tons of experience when it comes to m&a and negotiations what sort of leader do you think he will be? bill: i think he will be successful because he has got the skill set that is required now in new zealand. we have quite a large current account deficit, one of the largest in the oecd. and the public are looking for just sensible, considered management. there is no doubt that chris luxon's got the skills for that. he will have a reasonably straightforward political environment, believe it or than he might have expected. -- probably better than he might have expected. in three years, we really have never had a prime minister entered politics as recently as

three years and then become prime minister. but it shows he can learn fast. the job that now needs to be done in new zealand is probably more businesslike and less political. shery: of course, a lot of how he governs will depend on the final shape of government. to that point, one of the surprises this weekend was the big win and return to parliament by new zealand first. do you expect winston peters to be part of that government? bill: there are some results in the election that have yet to be resolved that might make a difference. even if it looks like he will be needed for government majority, i think you will find -- he will find himself in less of a bargaining position that he has done in the last three coalitions he was part of, including negotiations with my

government in 2017. chris luxon, winston parties, the parties are also running pretty reasonable and constructive because they know that the public aren't interested in a lot of politics. they have had their raid through post-covid. it's one of the reasons they got rid of the last government, too much politics, less performance. they will have to start sorting out the accumulative macroeconomic problems. shery: one of the challenges seems to be cutting government spending. is this a good time for such a move, which includes tax cuts? bill: it is surprising, isn't it? even the incumbent government is a center-left party,, it had some of its signature moves earlier in the campaign which were announced, spending cuts. it's a sense of whether this is the right part of the

cycle, and there is more concerned about large-scale waste overflowing from covid. that is why i think voters support -- but the argument that middle income tax cuts should happen. they are under a cost-of-living pressure. but they believe they can have those tax cuts at the same time as there is a cleanup of government expenditure. so the tax cuts will not be at the expense of public services or public service performance. haidi: a lot of the challenges following the new zealand economy or confounding the new zealand economy, at the moment, our global. immigration is expected to add to inflationary pressures, energy costs are expected to worsen inflation pressures as well. do you think the government, along with the rbnz, will deliver the kind of economic turnaround that is being promised is almost a singular election issue this time? bill: i think it will be a

challenge. the right kind of issues are being spoken about. as you say, there are global challenges. who knows what other supply disruptions you are going to get -- you have just been talking about the effect on oil prices of the israeli-gaza invasion. so we are all dealing with a certain set of circumstances. so you have to control what you can. in new zealand, we can't control the quality of government speed. we can do a better job of the energy transition, help take some pressure off prices and speed up the process. there are plenty of choices for the new government to do better, whatever the global circumstances are. haidi: take a look at some of the headlines around the world from this weekend, and it's interesting i think that in a

lot of media, this government has been characterized as the most conservative in ageneration. you agree with that characterization? and how do we explain the big shift we were in just six years ago? bill: i think there is a pattern around the world that government who think that they can govern with aspirational objectives, and that putting out first releases is the business of government, are going to come under pressure. now that households are under pressure, there is less of the tailwinds that we have had in new zealand in the past. the chinese economy has some uncertainty. inflation is turning out to be sticky. like a brewer else, the central bank has done a poor job of managing the post-covid pressures. it it -- like everywhere else,

the central bank has done a poor job of managing the post-covid pressures. i expect less flag waving and more focus on delivery. they will need to deliver some significant gains, some significant shifts in the performance of public services, some progress on the fiscal deficit, some lifts in investor confidence or the public will feel let down, and they will suffer poorly in three years time. shery: bill english, former new zealand prime minister, thank you very much for joining us. of course, going through the new zealand election results. we do have breaking news at the moment. we are hearing the biden administration will tighten sweeping measures announced last october to restrict china's access to semiconductors and chipmaking gear. the rules aim to close loopholes in last year's curbs this is according to people speaking

with bloomberg. the biden administration will add chaney's chip design -- chaney's chip design firms to trade restriction list. and they will strengthen controls on selling advanced chipmaking equipment and graphic chips to chinese firms. again, a bloomberg's group that they tighten controls on china's access to advanced chip track. you are looking at u.s. futures trading earlier in th hi, i'm jason. i've lost 228 pounds on golo. so when my doctor told me i needed weight loss surgery, i knew i had to make a change. golo's helped me transition to a healthier, sustainable lifestyle. i'm so surprised just how crazy my metabolism has fired up. i have a trust in golo 'cause i know it works. golo isn't like every other program out there, and i'm living proof of it. (announcer) change your life at golo.com. that's golo.com.

>> as prime minister, i will always accept responsibility for the decisions i have taken. and i do so tonight. but i do want australians to know that i will always be

ambitious for our country, ambitious for us to be the very best version of ourselves. i will always be optimistic for what we can achieve together. haidi: australian prime minister anthony albanese, speaking after the filled voice referendum. the prime minister is facing a struggle now to reunite his country, after his campaign promise to include a voice for indigenous people. the referendum failed. let's bring in guest for more. ben, not just failed, but failed a lot more badly than i think even analysts were anticipating going into the weekend. can you breakdown the results and what went so badly wrong? ben: a majority of support

across the country and majority of support in the state was needed. it got neither of those. it failed by a significant margin. we are looking at about 60% voting for no and just 40% voting yes. every state has now rejected the referendum. so instead of getting 4 out of six, it gets zero out of six. the capital of canberra did vote yes. and a lot of indigenous communities voted yes by a significant margin as well. shery: prime minister albanese pledged to hold this referendum at the height of his popularity. we have seen his popularity really lunging at the end of the campaign. so what will this actually mean for his government? ben: it will take some time to see exactly what it means. what we know at this stage is

that there will be questions raised in his party about his campaigning ability and about his policy direction. but that could be as far as the political damage extents at this stage. there was a poll last week that showed indigenous issues, including the voice of theirs are fairly low down in their priorities at this time. it is the cost-of-living, inflation problems, and obviously, health and education. so if the prime minister can switch his focus to issues of the cost-of-living, which his colleagues are calling for him to do, there is a chance that might and up not affecting his political outcomes that much. haidi: when it comes to the voice and the process of reconciliation, what comes now? we have seen a lot of indigenous leaders take a step back, in fact, going into a weaker silence before they were leaving, any further on what

comes next. the prime minister said on the referendum night that he intends to continue to protest the referendum and continue the process of trying to raise living outcomes for indigenous australians, who have some of the worst life expectancy in australia. we haven't seen specifics policy suggestions at this stage. there are reports out today that you might be looking to set up a very personal voice. just to be in office, where he can receive advice on indigenous australians at the same time from the other side of politics, the conservatives have said they will hold effort referendum on spending for indigenous australians if they win power. he did appear to walk back his

promise during the referendum campaign to hold a second referendum to give more -- to put indigenous austrians into the constitution. shery: bloomberg's ben westcott joining us from cranbury. we have more on that breaking news from minutes ago. the biden administration is expected to tighten sweeping measures announced last october to restrict china's access to semiconductors and chipmaking gear. for more, bring in chief north asia correspondent stephen engle. how will the new rules differ from what we saw last year? stephen: it is simply a tightening of the rules and a slight expansion as well. obviously, the biden administration has been imposing export controls on advanced chips as well as chipmaking equipment to help limit the ability of chinese chipmakers to get those proprietary technologies developed by the united states and its allies possibly into the hands of the

chinese military. this would be closing of a number of different loopholes that perhaps the u.s. government has found that the chinese procurement channels have used, such as third countries. or chinese companies using their affiliates in other countries to purchase such equipment and technologies and chips. so it is a tightening, perhaps led by the commerce department to essentially close those loopholes which have allowed chinese buyers to avoid those sections so far. it's not so unexpected. right now we are hearing from sources that this could be announced by the early part of this week, and it comes at a time where we're in beijing, about to kick off the belt and road initiative, completely unrelated obviously, but a lot of developing nations' leaders are here in this city today,

including vladimir putin. haidi: there is a lot going on, steve u.s. secretary of state anthony blinken is urging beijing also to use its influence in the middle east to prevent other state actors from attacking israel. how does this place beijing, because we know that xi jinping has tried to play this piece broker role before. stephen: that's right. we had anthony blinken speaking for about one hour with wang yi before he flew to riyadh. blinken is heading to the middle east to shore up arab support for israel at this time of crisis, obviously, in gaza. blinken is doing that on the diplomatic front. but also this weekend, we had josep borrell, europe's top diplomat here in beijing. he had face-to-face and meetings with wang yi, china's foreign minister and top diplomat.

we talked to joseph morelle on friday, and he was less, total -- josep borrell, was less committal while on chinese soil about condemning china or not condemning china for not condemning the hamas attack in gaza. he was more muted in his criticism while here in china. but he says he and wang yi agreed that the long-term solution in gaza is a two state solution and palestine. but the immediate crisis is happening, unfolding right now. that the a two-state solution will not be the resolution to resolve the immediate crisis. this is what he had to say. >> we are facing a critical moment in gaza. and we cannot say that the problem in gaza will be solved by the a two-state solution, because the a two-state solution, the world has been feeling miserably. 30 years ago after camp david,

we have not succeeded on this a two-state solution. and what we discussed with the world -- with our chinese counterpart, is that it is the only solution that can be implemented. so we agreed that we have to work in trying to build on this solution. that is not a solution for the problem that we are facing today. stephen: the rail admitted that the middle east crisis was not on the agenda in his talks here in china, but it came to the fore, obviously, given the development late last week and ended up dominating much of the discussion. that is why he says their political director, henrique mora, will be traveling to beijing to continue the discussions the european union has with china right now. obviously, the trade deficit that widened 60% over the last

year between europe and china is on the economic front at the top of the agenda, but also the war in ukraine. borrell talked on friday about how europeans had lost trust in china because of china's stance with russia and not necessarily condemning the war in ukraine. so this has added a new front, what is happening in the middle east. a new front attack perhaps on china. the israeli government has criticized china's official stance through its statements and through its official state media for not condemning the hamas attack in gaza. so there is to be discussed. we are just approaching the beginning of the belt and road initiative forum, the 10th anniversary of that, with vladimir putin being here in beijing for the next couple of days. that could also overshadow the developments or the toting that china wants to say of the belt and road initiative, which, obviously, the united states in

some forms has criticized as being a deathtrap for many developing nations. shery: we will be watching the forum. bloombergtechtv she -- bloombergtechtv's chief north asia correspondent stephen engle there. according to an exit poll, the platform led former european council president donald tusk swept one-third of the vote. together with its partners. the group is set to secure 248 seats in the 460 member lower house. turnout on sundays vote stands at a record of 73%. polls have also closed and the vote is being counted in ecuador, where voters are choosing between a socialist and the air to fortune. luisa gonzalez wants greater control of the economy while her arrival neighbors free markets. soaring crime was a top issue

for voters, this was the nation's bloodiest presidential election in living memory after one candidate was gunned down while campaigning. republicans have nominated trump loyalist kim jordan -- jim jordan to be speaker of the house. this elevates the conservative firebrand in the fractured party's second attempt to risk -- replace ousted leader kevin mccarthy. he faces challenges to the speakership as his controversial stances he needed more moderate lawmakers in the party. we have more to come on "daybreak: australia." this is bloomberg. ♪ ldn't be easier. i share my style, size and budget. and they shop just for me. my shopper sends me stuff i feel good in. i keep what works, and send back the rest. stitch fix.

shery: this week we are bracing for results from goldman sachs and morgan stanley. we saw solid earnings from j.p. morgan and wells fargo, both gained ground on friday's session. su keenan joins us now with the latest. there were three banks, including citi, and their results were pretty strong. su: about as strong as you can get. they were up 34%. yet, the warnings were across-the-board about the fed, about bad loans, about the war that is going on.

wells fargo, citi and jp morgan saw combined profit rise 30 billion, but they rode off nearly $4 billion in loans, nearly double the amount of charge-offs recorded a year ago. jp morgan ceo jimmy dimon was out front sounding the alarm, saying this is, quote, "the most dangerous time for the world in decades," citing caution is needed given the wars, the soaring debt, and the fed. quote, "while we hope for the best, we are preparing for a broad range of outcomes." jp morgan posted another quarter of record net interest income in joint wells fargo in lifting its forecast for revenue. citi had the best third quarter in at least eight years, driving revenue past analyst expectations. but we had citigroup also giving details on its most aggressive restructuring in two decades.

executives spent friday fuming about capital limits set up by regulators. this will be a burden on the banks. so that was a big topic of conversation on the earnings call. haidi: there is a lot going on. give us a preview of what we are expecting this week. su: we have goldman, morgan stanley and bank of america, they are following in the heels of this strong profit. they are likely to report strong results. but with differences, goldman is instructed to wrap up its unwinding of different units related to that ill-fated expansion into regional banking. bloomberg reporting they have been selling off certain units. dealmaking is still expected to be less than the best, we know that the current macro has really put a chill on deals for all major investment banks.

morgan stanley has tilted towards wealth and asset management under ceo james gorman. bloomberg intelligent expects this to support their third-quarter results. bank of america is the bank with its stock most under pressure, down roughly 20% year-to-date. analysts say the impact of higher rates will show up in its results and it is suspected to report a profit of $.83 a share, up to .5% from the same period a year ago, growth, but not much, compared to jp morgan and wells fargo, which magnitudes of that. bit of red on the screen. we will see how they report this week. shery: bloomberg's su keenan with the latest on bank earnings. sticking with the earnings theme, big-tech companies are due to start reporting this week. let's discuss morning calls and bring in annabelle in hong kong. bilk tech -- big-tech has been an interesting sector, we saw the ai hype supporting them. at the same time, the rally in

yields continues to add pressure to the sector. what are analysts saying? annabelle: that's right, when you look at the recent performance of big tech, you haven't really started to see the impact high yields are having. certainly there is a lot of investors out there pinning their hopes on big tech, in particular, to lead the rally in the s&p 500. you look at the big five -- that is alphabet, amazon, apple, microsoft, nvidia, they are the heaviest weighting in the s&p 500. bloomberg intelligence crunched the numbers and big tech has the highest profit growth estimates out of any group in the s&p 500. this is really the sector that a lot of investors are pinning their hopes on. you can see broadly, 34 percent profit growth on the year for that group.

they are expected to try to prop up the laggards in the s&p 500 -- energy, materials, health care. investors are optimistic on outlook. there's a couple of different factors, we have seen big tech, for instance pushing through big job cuts. we also saw good numbers in the second quarter. and then history is a guide, too, because the s&p 500 typically rallies during the reporting season, two-thirds of the time. haidi: there is at least one -- when it comes to an earnings rally. annabelle: sher pointedy at least one, out, you look at ai, we have seen a lot of these companies really rallying this year on investor hopes that they would gain out of ai. nvidia is really the only one whose financials are being impacted from it so far.

you have also got the valuations of these companies, they are trading at very stretched levels, very expensive stocks you're buying into as well. that puts pressure on these companies to continue delivering their results. one broker pointed out that if they don't actually deliver on those numbers, they will end up losing the interest of investors. certainly we have earnings kicking off this week. tesla is one of the first ones coming out on wednesday to kick it off for this week. haidi: annabelle droulers there in hong kong. the broader geopolitical overlay to all of this is always in play -- the imf's managing director kristalina georgieva, says she's sympathetic towards the people of israel and gaza, but she knows that other institutions are better positioned to

negotiate on the war. she spoke on the sidelines of the imf annual meetings in marrakech. >> my heart bleeds for the people in israel that were slaughtered. my heart bleeds for the people in gaza but now the civilians, not the militants, the civilians that are paying such a high price. we pray for resolving this conflict as quickly as possible. the longer it goes, the more the risk of spillovers grow. and where we are as a world, we simply cannot afford more uncertainty, more hatred. we are so much into pointing fingers at each other, and we are in a world in which we have to hold hands.

so, fast resolution is what would help people, and it would help the world. >> can you effect the dialogue, for example, between egypt and israel right now, as we saw in 1967 and along the path of these tensions. can international monetary fund provide guidance or assistance to figure out a relationship between israel and egypt over this territory? >> our duty of neutrality is there because we have to be able to provide objective policy advice on economic matters to all of our members. there are institutions that are a better fit to bring countries together on the political level than the fund. what the fund is concentrated

now on is to very carefully monitor what could be the economic impact of a new eruption of tensions in the middle east. so far, what we see is relatively contained. oil prices are going up and down. but there hasn't been a huge spike. shery: imf managing director kristalina georgieva speaking to bloomberg's tom keene on the sidelines of the imf world bank annual meetings in marrakech. we have more to come on "daybreak." this is bloomberg. ♪

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shery: here watching "daybreak: australia." here are the latest corporate stories we are watching. south korea's financial watchdog is proposing record finds two global investment banks for engaging in a negative shortselling, that is a move considered illegal in the country. the watchdog says the hong kong-based units of the best conducted naked short sales in several securities between 2021 and 2022. the proposed fines have yet to be analyzed, in the banks' identities will be disclosed in future proceedings. citigroup says banking

facilities have resumed after friday. and outage was caused by a technical issue in the data center eased by the lenders. the providers say at investigation will take place. the disruption for the delay expressed by dbs customers last month in processing transactions on of its latest services. . haidi: let's take a look at how we are setting up the start of trading here in sydney. quite a steady tchir in new zealand with the new incoming government. -- quite a steady picture in new zealand with the new incoming government. ♪

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♪ haidi: you are watching "daybreak: asia." i am haidi stroud-watts in wellington where new