i'm vonnie quinn. this is bloomberg. yvonne? yvonne: just a recap, the data we got here was definitely alarming. perhaps why we are seeing so much action this morning when it comes to the pboc. we are seeing applied pressure out of beijing with the china statistics bureau talking more about this. in terms of the statement they are raiding out, they mentioned momentum of the recovery is there, but we must be aware of the stagflation results are increasing and the recovery of domestic economy is yet to be consolidated. dave, your thoughts? david: over the last few minutes , the equity markets have turned lower. that is an issue that china cannot control. what they can control to a large extent is domestic demand. if external demands starts to weaken, that could be a big problem. we will talk more about the outlook for external demand. bluescope steel reported record earnings earlier on. there ceo mark vassella will join us in a couple minutes. we will talk about their outlook and if they are seeing signs of that falling. this is b

i am vonnie quinn. this is bloomberg. yvonne: still ahead, an exclusive interview with linkedin's director on progress towards gender equality in the workplace. we have a new study coming up from them, coming up next. david: let's take a closer look at some of these issues for than the property sector in china. they are saying the homebuyers strike lay mortgage payments could increase risks. we will dig deeper into that report. you are watching bloomberg. ♪ yvonne: take a look at property stocks in china this morning. a bit of a reversal after a lot of fed chelation -- speculation , we saw headlines in red. china considering estate act bonds, liquidity support for the sector. saw double digit gains for country garden and long for, slightly lower today but a lot to talk about with s&p. david: it's going to take more than a headline, more than a few headlines. s&p joining us, they basically think property sales are down 33% this year, almost double the drop in their prior forecast. joining us now is charles chang. it's ve

i'm vonnie quinn. this is bloomberg. >> we are watching the commodities space with asian gas prices jumping following the bell. how are those stocks related to natural gas right now? >> look at the contract on the screen. that was the move for the european gas contract. we are seeing the big names in asia moving higher at the start of trading. a lot of panic as to whether we will see enough supplies into europe. politicians warning a for a tough winter ahead, one of the starkest warnings coming from the belgian prime minister. still in the energy space, let's change to another mover we are watching in australia. it was one of the companies reporting this morning as we get the earnings season underway in australia. net profit around .5 billion dollars aussie. the company and focus for its lithium supplies, critical for batteries. also keeping an eye on the cement maker. turning to japan, travel related stocks higher this morning. local media reporting the government could be changing its travel policy,

i am vonnie quinn. this is bloomberg. rishaad: quickly checking on a currency which has not been this low since 2020. the taiwan dollar. falling below that level of 30 against the greenback. essentially, what we have foreign investors pulling $625 million from local stocks, the rise of the dollar also responsible, we have political uncertainty on the horizon and part of the zeitgeist with nancy pelosi visiting four countries, however, a statement skipped any mention of a stop in taiwan. let's get to our taipei bureau chief. reporter: that is the question we are all trying to answer, including throughout the entire weekend. is pelosi going to come to taiwan? yesterday, we got confirmation after weeks of speculation that she will visit singapore, malaysia, south korea and japan. the question was, will she add an unofficial stop in taiwan, so there were tens of thousands of people watching flight radar. in the end, and ended up not happening. for now, she has not been to taiwan as yet. that does not mean she is not going to

i am vonnie quinn this is bloomberg. quek still had on bloomberg markets: asia, they will discuss their latest earnings. all of this as the car starting -- karsh, start makes its debut. keep it here with us. this is bloomberg. >> >> 15 minutes back, it was all red and as hazlitt was pointing out, this reversal on the onshore market was half of 1%. let's turn our attention to what is happening in hong kong. various problems from the financial services perspective. look at the survey right now. i will not get into the details but suffice to say, it has been difficult to hire and attract talent in hong kong. symbols have been off short if you will. there was this absolute collapse in this rate of change in the population. the biggest drop on record. here with us on set is sally wong. the ceo of hong kong investment fund association. very nice to see you and hopefully next time under better circumstances. tell us about your survey. where are they moving these roles to? quite there are members of global financial companies an

i am vonnie quinn, this is bloomberg. cuesta hong kong secretary is confident of a pickup in ipos after posting its fifth straight drop in quarterly profits. we have more from this list of interview with the ceo. this is bloomberg. ♪ >> u.s. futures struggling early in the asian session. let's bring in our next guest who is the chief research strategist and portfolio manager . good to have you with us. >> the challenge has been as we have seen a massive correction in the equity market, there has come back about half of what we lost earlier this year and you are starting to see a lot of pressure on bonds as well. people are a little overly optimistic about how likely it is you can solve the inflation problem quickly. we don't have to include more policy and more rising rates. >> is that question when he will -- is that why so many people are taking cover? >> yes, the dollar has been pushed for several reasons. the dollar is very strong because of the relative positioning of the u.s. economy versus other regions. we also

i am vonnie quinn. this is bloomberg. shery: take a look at futures trading at the moment, not a lot of movement after a very mixed station in new york. s&p 500 little changed, nasdaq 100 outperforming. in the future session, not much happening. even the bloomberg dollar index not very much. this as we are sitting on the sideline, given that we have the u.s. job reports, big set of numbers coming up on friday. haidi: i always get nervous when you say there is stop much happening -- not much happening. our next guest does not think the recent rebound signals the bottom of the selloff. in terms of nothing happening, stocks, the dollar is holding. after quite a bit of weakness, ponder dropping as well. is there a big lack of conviction even in the rallies we do see? >> i'm not sure there was a lack of conviction, we always saw a very heavy selloff, the markets are down cheap definitely. we are not convinced we have seen the bottom. there is still a lot going on. the unknowns still are is inflation going to be extended beyond

i am vonnie quinn. this is bloomberg. haidi: coming up, we delve into the latest on trade talks, the outlook for global trade. this is bloomberg. ♪ haidi: we just had cross the bloomberg from our one-on-one interview with the indonesian president john micklethwait confirming that the leaders of china and russia will be attending the g20 summit in body later this year. -- in bali later this year. deborah elms joins us. this makes for an interesting meeting given a lot of the narrative around the attempts of the western allies trying to isolate russia, and some of the russian allies, they have had support from china and india -- what is the dynamic here forgetting something meaningfully done at a platform like the g20 if these leaders will be in attendance? deborah: i think it is a great platform forgetting important conversation started. the presence of so many challenging individuals means many leaders will be nervous about being in the same room with each other, so how do you get something done in a meaningful way, whe

i am vonnie quinn. this is bloomberg. rishaad: we have a managing director sharing how the singapore-based investment management company is helping to tackle a plastic waste crisis in southeast asia. up next, ing's ceo joining us successively to review second-quarter numbers. this is bloomberg. ♪ haslinda: welcome back. ing has posted second-quarter earnings ahead of analyst expectations. shares are still under pressure, down more than 20% this year. bloomberg intelligence says the market may be too cautious and there is room for more earnings for further buybacks. joining us is the ceo and head of wholesale banking. what is the outlook of the second half? guest: asia will outperform itself. outperforming the other regions will take a little bit of time, but what we are doing is spending a lot of resources and energy over the next three to five years. haslinda: asia will outperform itself. how strongly? guest: a little over one billion euros. i would not be surprised if over the next three to five years we will have 40%

i am vonnie quinn. this is bloomberg. haidi: still ahead, even as price pressures appear to be easing, it might take a whale -- a while to get inflation back on target says our guest. why he still sees risks rising. plus, singapore's prime minister discusses changes in taxation to shield the most vulnerable. this is bloomberg. ♪ shery: you're looking at live pictures of singapore, the government trimming the growth forecast for this year to reflect an increasingly challenging global environment, including a fight against inflation that has had a 14 year high. singapore's next prime minister says the government expects prices there to peak in the fourth quarter and begin to ease next year. lawrence wong spoke exclusively to bloomberg television, telling us more relief measures they be on the way. -- may be on the way. >> some of the measures are being ruled out and in the coming months we will monitor the situation and the assurance we give to everyone in singapore is the inflation situation, if it were to worsen, we cou

i am vonnie quinn, this is bloomberg. david. david: just had on the show we will be focusing on the future of the property sector in china. where the story is going to go. they expect -- to continue type funding market to continue. >> another problem that is facing, a power crunch caused by severe drought the latest on the heat wave. up next. this is bloomberg. ♪ >> it was taken as almost axiomatic six month or year ago that at some point the chinese economy would surpass the american economy in terms of total gdp, market exchange rates. that is now much less clear. >> that was the former treasury secretary larry summers on the health of the chinese economy. he is saying look, it could be the 1990's of japan could be coming to china. >> you look at the growth, we are almost back to those levels, somebody forecasts coming out certainly the economy being pummeled not just by the cyclical factor, the severe weather, the record drought we are seeing, very heavy rain and the north. food shortage is exacerbating the issues at a fair

a vonnie quinn. this is blip -- i'm vonnie quinn. this is bloomberg. yvonne: stay for exclusive interview with global management consulting firm carnies. the latest study reveals the apex, the second-most attractive market for investors. rishaad: up next, we discuss trends in the online trading industry. the company looks to grow its global foot and and ambitions in asia. this is bloomberg. ♪ >> the federal open market committee's overarching focus is to bring inflation back down to our 2% goal. >> i think we're going to have to move them up and this is based in my current read of the data, above 4%. and probably need to hold them there next year. >> inflation is extremely high. there is unimaginable -- the levels were unimaginable 18 months ago. >> we have to get interest rates higher to slow down demand. >> we get to above 3.4 by year end. then we see. we have to let some of this play out. >> it could be over 4%. i don't think that is out of the question. >> i have said 3.75 to 4% by the end of this year. i would like to get to that level and soone

i'm vonnie quinn. this is bloomberg. david: in case you missed some highlights from the interview we just did with ms. regina ip, h ong kong is mulling waiving this double stamp duty for chinese homebuyers. if you want to catch up on the interview, tv for bloomberg clients. scroll back all the way to your screens. latest lines coming through from the interview, that zero quarantine in hong kong by november is a highly desirable goal, and not so much a hard target. rishaad: yep. she would not be drawn on that. let's tell you about what we have on the way. discussing the latest on the philippine markets. also the economy after some less than good data at the top of the hour. this is bloomberg. ♪ david: welcome back to the show. just one over our into the session in manila. a little weaker. i just have to glance behind the camera to see it. 5560 on the exchange rate. we also got gdp numbers low excitations. year-on-year 7.5%. the second quarter seasonally adjusted which contracted. we were expecting a slowdown. he di

i am vonnie quinn with the first would headlines. fed officials are pledging to continue an aggressive fight against inflation even at the risk of recession. jim bullard says he favors big rate hikes. they are committed to lowering prices and a recession could happen. mary daly thinks rates will remain high for up to a year. nancy pelosi will meet her counter part insole after wrapping up her controversial taiwan visit. it is on the agenda include into pacific security and climate dependence. -- climate change. opec plus will raise production in september and one of the smallest hikes in history. it is a blow for president joe biden after visiting saudi arabia in july, trying to help cool fuel prices in the united states. their production capacity is limited. india plans to work with cleaner fuels. the roads third bennett -- their biggest emitter of greenhouse gases is pushing to hit net zero by 2030. the government is seeking a mandate for the use of some fossil fuels. a group of professional golfers including phil mickelson are sui

i'm vonnie quinn. this is bloomberg. shery: right then. still ahead, on watch for china's second quarter gdp due later this hour. the world's third-largest economy is forecast to return to pre-pandemic size. we will have more, but first the lockdowns in china are set to wait on earnings. we will expect the lingering effects of covid zero lockdowns on the health of the economy png's chief economist sarah hunter joins us next. this is bloomberg. ♪ shery: you are watching daybreak asia. here is a look at the week ahead. markets are watching for any clues in the july feds meeting minutes on how big the move could be. that's on the size of a september hike have swung between 50 and 75 basis points on the recent inflation reports. meanwhile, in asia, we get central-bank decisions out of the philippines and new zealand. australia's latest on employment figures come out thursday and coming up this hour, we will be breaking japan's second-quarter gdp. later, activity data out of china. haidi: yeah, and of course big earnings we

i'm vonnie quinn. this is bloomberg. rishaad: still to come, a jakarta-based startup is -- catch are exclusive interview. first, discussing his expectations ahead of cathay pacific's earnings. and amid all these calls by the airline to scrap hong kong's 14 altogether. this is bloomberg. ♪ >> it is just not sustainable for businesses to keep on subsidizing quarantine costs to conduct business in the region. so in terms of opening up, zero quarantine will also enhance tourist travel. we cannot attract people to come to hong kong if we remain closed and a quarantine regime is still in place. >> it is a highly desirable goal. we all hope we can make it. but everything has to depend on a scientific approach based on the data. and we have to brace for other eventualities. rishaad: some key views from hong kong on what is next for the quarantine for travelers, to three nights from seven. david: takes us into the, well, the cathay story which we have been waiting for. quite a terrible 24 months for the company. last six month

i am vonnie quinn. this is bloomberg. rishaad: coming up on bloomberg markets, alibaba is facing arguably area recheck as the e-commerce giant comes out with quarterly results. we are expecting the company's first ever sales contraction. but, next, how nancy pelosi's taipei visit is ripping through taiwan. we will be discussing supply chains generally with our guest from s&p global. this is bloomberg. ♪ rishaad: we are back and this is "bloomberg markets." this is a look at equity markets. hang seng on an upswing. technology really helping things. alibaba is 5% to the upside, the global share gauge pushing to the highest level since june. we have a slew of earnings and buyback amounts coming from moderna and paypal. just to mention a couple. but let's move to what we have seen in the aftermath of nancy pelosi's visit to taiwan. there we go. the taiwanese dollar is seeing volatility, coming off the 2020 highs we had been witnessing ahead of that visit. just above 30 against the dollar right now for the taiwanese currency

i am vonnie quinn. this is bloomberg. shery: china is signaling it will keep up pressure on taiwan following u.s. house speaker nancy pelosi's visit last week. beijing is extending military drills that were due to conclude on sunday. for the latest, let's bring in our chief north asia correspondent stephen engle. stephen: it's been almost a week since nancy pelosi is controversial to -- trip to taiwan and reverberation still being felt. these six exclusion zones that encircle taiwan, where they are conducting these military drills, supposedly for four days, they were supposed to be wrapped up on sunday, but the people's liberation army have announced more drills in and around taiwan. taiwan is saying they flew at least 66 sorties sunday that crossed the median line of the taiwan strait. 120 pla aircraft crossed the line from wednesday to sunday. the question is how long will these what some would say provocative displays of force, how long will they continue to send the message that beijing is displays

i am vonnie quinn. this is bloomberg. kathleen: let's take a deeper dive into the european energy crisis. su keenan joins us. su: victory lap in meeting goals for storing gas. let's drop into this chart to show you how german tanks have been filling up considerably. they are on track to meet goals for november which translate into winter. the big concern. the european commission is the executive arm of the eu. let's check the two week chart of natural gas, it's an odd looking chart because prices soared last week. we are down in the prior session and down again in terms of the benchmark for european natural gas. it's intact with the announcement that they are trying to do something, the bloomberg shows the urgency the eu is faced with, electricity prices are soaring tenfold driven by the rise in natural gas. the eu believes it has a lot to do with speculation and concern that things can get worse. haidi: tell us what we know about the planned intervention. su: it's all about the nord stream 1 pipeline. the black coming ou

i'm vonnie quinn. this is bloomberg. haidi: still ahead, china locking down a resort city, leaving about 80,000 tourists stranded at the popular beach destination. more on that later this hour. coming up next, carlos casanova joining us to preview the points he's looking out for in asia this week. this is bloomberg. ♪ >> i don't think the fed has the bread right now. now when we are seeing wage inflation unambiguously after this number decelerating after this number, after the eci, after the atlanta fed, we have, by every reasonable measure of core inflation, inflation running somewhere plus or minus 5%. that is not acceptable by any dimension. shery: that was former u.s. treasury secretary, larry summers. with inflation in focus, we look at the week ahead. economists expecting sky high inflation. could be finally approaching a peak. this is global growth spotters but the sizzling jobs numbers from last week is seen keeping the pressure on the pet -- on the fed for more aggressive rate hikes. we are getting inflation d

i am vonnie quinn. this is bloomberg. shery. shery: coming up closer look to the japanese startup scene with a company that has invested in hundreds of them. our guest will join us next. this is bloomberg. ♪ >> time for "japan ahead" on "daybreak: asia." we have a pretty weak japanese yen against the u.s. dollar. remember, this is after the biggest weekly decline in two months for the yen, given the strength of the u.s. dollar. we look ahead to jackson hole, we expect fed officials to talk about the rape path forward. we have already had pretty hawkish fed speak, pointing to more rate hikes. for now, japanese features are under pressure as we continue to look ahead to the open. let's delve into japan's startup scene. the government has put together a 10 year plan that will see increased investment by ten-fold. joining us is paul mcinerney of incubate fund, which has managed $4.5 billion, and invested in hundreds of startups. paul, good to have you with us. you specialize in pre-and post-seed stage companies. tell us abo

i am vonnie quinn. this is bloomberg. ♪ haidi: let's look at markets, -- >> 30 minutes into tray for japan, australia and south korea. a slight lift across the board but trading looking in. a wait-and-see mode ahead of the jay powell address at jackson hole this weekend also, the question is, how aggressive get the fed continue to be? just heard from minneapolis fed president neel kashkari in the previous hour, saying the focus is still very much on fighting inflation. still, we got weaker economic data for the u.s. coming in overnight. look at the direction of the dollar and other currencies. the dollar index now trading fairly flat. but off that, we are keeping watch on the yen this morning because bloomberg economic downgraded their growth forecast based on weakness in the yen. importers have not been able to take advantage of the rising costs there and exports at the same time because of the global slowdown also have an been putting out as many goods. we also watching the korean yuan at a 13-year

i am vonnie quinn. this is bloomberg. kathleen: the european union is preparing emergency action to take control of electricity prices that have soared nearly tenfold in a year. su keenan joins us with more. this is such a critical cost. they will tough -- face a very tough winter. how will they do it? su: their goal is to break the link. eu president ursula von der leyen said it is urgent that they will develop an instrument that keeps electricity prices or gas prices from dominating electricity prices. let's draw into the bloomberg to see what the urgency looks like. gas prices soared tenfold. it has dramatically increased the burden on european households that are still recovering from the pandemic. what the eu is trying to do is to intervene and halt the price rise which they see as being driven by nervousness and market speculation the. you are seeing natural gas prices that have come down, plunging the most since march after germany said it's gas was filling up faster than planned. futures dropped by 21%, which reve

i'm vonnie quinn. this is bloomberg. shery: still ahead, that solicitor general set to hand out legal advice on the former prime minister, scott morrison. one of us truly is most respected political commentators gives us her take later this hour. up next, as markets oh wait the fed's rating, fed officials are caught in a bind pushing back on financial conditions. find out on bloomberg head. -- bloomberg ahead. this is bloomberg. ♪ shery: you are watching daybreak: asia. here's a look at the week ahead. china's primetime rates are set to be released monday with banks likely to follow the pboc decision to cut a key policy rate stop the bank of malaysia it makes a decision with most analysts saying a key rate unchanged at 3.5%. in singapore, we get july's cpi data. analysts see inflation rising on a range of demands and cost factors including higher prices for food and fuel imports. on thursday, traders expect the bank of korea to raise its key rate by 25 basis points. the jackson hole symposium begins, always closely wat

haidi: let's get you to vonnie quinn with first world headlines. vonnie: a u.s. congressional delegation led by senator ed markey landed in taiwan sunday for a two day visit. they are meeting with the taiwanese president and other lawmakers. according to taiwan, the sessions include global supply chains and climate change. tensions with china hi after nancy pelosi's visit. chinese officials have signaled that thousands of tourists trapped in hotels on hainan could return. frustration over covid lockdowns sparked protests. commercial flights for domestic passengers should resume monday. travelers may only fly out if there are no new cases in their tour group and hotel within the last seven days. salman rushdie recover -- recovering after being stabbed. he is on the road to recovery. he is said to have been removed from a ventilator sunday and is able to talk and even joke. the author suffered serious injuries friday after being stabbed multiple times shortly after taking the stage. tributes pouring in from wall street and beyond for andrew james comer the former d

let's get you to vonnie quinn. vonnie: opec's new head says oil markets face high risk of a supply squeeze this year. the secretary told bloomberg fears of slowing consumption in china have been exaggerated. he said opec members and other oil producers are running out of extra supplies. he was appointed as opec's top diplomat. >> i think we are running on thin ice if i may use that term because capacity is becoming scarce. this is an issue. it is like an insurance policy. we do not want the oil markets to run on without the insurance policy. vonnie: goldman sachs has downgraded its forecast of china's for your gdp. down point -- down from 3.3% following weaker than expected july data. goldman cited rising covid-19 cases. it is the second time goldman has cut its forecast for china gdp in one month. the biden administration is weighing iran's response to a european union proposal aimed at reviving the 2015 nuclear accord. officials are signaling a deal could emerge after a year of false starts. from a president with

let's get to vonnie quinn. vonnie: senator elizabeth warren has taken aim at the fed, saying she is worried it will hit -- put the u.s. economy into a recession. saying she does not believe raising rates alone can contain inflation. where and spoke following fed chair' a jay powell speech in jackson all where he said he would continue an aggressive series of rate hikes. a city near beijing is imposed a partial like dennis covid-19 affections climb residents in the four main districts were told to stay home for three days beginning sunday as they go through testing. the northern port city will conduct citywide test monday. last week state media defendant the country's zero-tolerance approach to the pandemic. nasa is about to take the first step on a journey to return people to the moon by the end of the decade. an uncrewed rocket is set to lift off on monday. the artemis one mission will take an orbit that since it deep into space before it returns 42 days later. global news 24 hours a day, on air and on quickta

i'm vonnie quinn, this is. haidi: still ahead, a theory him developers are targeting their most ambitious upgrade by september. we get and insight by someone who has skin in the game. the ceo of australia's largest digital asset exchange. but first, san francisco's fed president mary daly says she's keeping an open mind on the fomc's next meeting. she's not ruling out a hike of 75 basis points yet. we hear from her next. this is bloomberg. ♪ haidi: san francisco's fed president mary daly said she's open to a 75 basis point rate hike in september, hammering home the central banks commitment to taming inflation. let's bring in kathleen hays with us, and, kathleen, it was such an illuminating conversation and semi-different ways, but from a monetary policy perspective, reaffirming. i love this idea that data focused, not one data focused. kathleen: i agree, it's small, but i thought kind of powerful statement because we have the cpi for july, the headline year-over-year number broke re-substantially, and then we

i am vonnie quinn. this is bloomberg. click still ahead, the jackson hole symposium and we have someone who was there at the very first content -- conference. markets are nervous about everything. this is bloomberg. >> a look at u.s. futures right now. seeing a little bit of upside. most indices right there, this after u.s. stocks saw the worst thing in about two months. we are talking about the likes of apple, microsoft, each losing more than $80 billion in market cap over the past two days. the meme stock frenzy unraveling speculative corners of the market. this as we continue to see u.s. dollar strength move toward the bloomberg dollar index at a one month high. let's bring in our next guest who says the markets are nervous about everything as we look ahead to jackson hole and things continue to roll in. good to have you with us. we are at the tail end of earnings season. we really heard a lot about those retailers that chart on the bloomberg showing how confident consumer confidence is. whether it is expectations, the

i am vonnie quinn, this is bloomberg. >> findings are coming in, showing how tough money managers are positioned as stocks enter the bear market. we have the highlight. what caught your eye? >> a number of significant investors have been bringing down their risks. they are reducing exposure to the stock market and we have seen that across a number of significant investors. we see that from endowments which liquidated a six minute long position and only holds basically to the etf's in the long side. what we are seeing is from those hedge is that he exited almost all of his long positions only added one new one. and they really brought on their equity exposure a great deal. >> was there any sector of the market that was a popular by? -- buy? maverick, lone pine. all of these were buying up stakes in this tech giant. they wrapped up their investment in amazon. making it one of their biggest holdings. stanley took the opposite position, the exited amazon entirely. >> what were some of the less popular names? >> netflix and and microsoft were not favored among the group. maverick liquidate

i'm vonnie quinn. this is bloomberg. haidi: still ahead, andrew gillum will be joining us talking about nancy pelosi's expected visit to taiwan. and some say the fed will stay on its current pace until the end of the year. ♪ haidi: let's get more on the markets, continuing to fret about potential fed pivot and potential risk coming from high interest rates and inflation globally. house speaker nancy pelosi is expected to visit taiwan today and potentially meeting with the president tomorrow. one of the ways were seeing this geopolitical risk manifest in the markets, this is looking at implied volatility in the time when market, the highest since 2020. elsewhere, not much of a reaction. does it speak to the challenges of broader markets to be able to read them to flee price and handicap this kind of risk? >> i think certainly from the taiwan perspective, the geopolitical tensions, they keep talking about this even before this happened this morning. just from the china and u.s. point of view, they cannot afford for this

i'm vonnie quinn. this is bloomberg. haidi: still ahead, the rba expected to lift its key interest rate by 50 basis points were a third consecutive month. rbc capital markets joins us later for more. next, wealth enhancement group says with every rate hike the excitation for recession increases, even if unemployment remains relatively low. we discussed that outlook next. this is bloomberg. ♪ >> the notion of a coming fed pivot. >> the pivot everyone is talking about. >> central to this is the view that there will be this immaculate disinflation. >> we still see core inflation accelerating. >> this was not a pivot from the fed. >> inflation is still what we need to be focused on. >> the fed is pivoting here. >> we don't see it. >> chair powell and his unscripted remark said we are at neutral. >> i am not sure why powell stated that we are near it. >> the market is looking for a pivot. >> the market is trying to force the fed's hand. >> financial markets seem to be pivoting prematurely. >> this is a market trying to alwa

i'm vonnie quinn, this is bloomberg. yvonne: singapore's next prime minister says the government expects inflation there to peek in the fourth quarter, and begins to ease next year. we spoke exclusively to bloomberg television telling us more relief measures may be on the way. >> some of the measures we have announced are still being rolled out in the coming months, we continue to monitor the situation and the assurance that we give to everyone in singapore is that the inflation situation were to worsen, we would be able to provide more assistance. for now, we expect the inflation to probably peak at about the fourth quarter of this year towards the end of the year, and it will start to ees thereafter, but the big uncertainty is what is the extent of easing, where with the new inflation rates stabilize at? at? ethic it's more likely that it will not stabilize at the rates that we would all use over the last decade or so, 0.1% inflation. in fact, that in itself is a historical anomaly because inflation rates never used to

i am vonnie quinn. this is bloomberg. >> ahead, a hotel group hopes to grow fourfold in three years by increasing presence in the asian-pacific. their chief development officer joins us later to discuss those plans. we will discuss market moves with optimal capital who thinks investors have not fully priced in quantitative tightening from the fed. this is bloomberg. >> you are watching daybreak australia. i'm annabelle droulers. the fed is on pace to double quantitative tightening starting this week. the balance sheet will be shrinking by $95 billion per month, $60 billion in treasuries plus $35 billion of mortgage-backed securities. in order to shrink the treasury holding by $60 billion per month, september will be the first month the fed will need to sell additional non-mature treasury bills. in september it will need to sell $16 billion worth. that is the white bar you can see here. moving forward the amount of sales will vary month to month. money markets funds might take some of the two point $2 tr

i'm vonnie quinn. this is bloomberg. kathleen: still ahead, a look at the oil market as russia chokes fuel shipments to europe and the eu hits a storage goal early. a ceo joins us later this hour. we check with the risk radar. this is bloomberg. ♪ haidi: the darkening global outlook has credits we shifting to underweight stocks. let's get more from jp morgan. we have a few more spots of resilience in asian markets. how are you positioning going into the rest of the year? guest: good morning. without the rally, we have a cautious attitude toward equity markets. this will continue as long as we see an outlook for weakening growth. thinking about the uncertainty that comes with the global economic environment. haidi: in terms of opportunities you see in asia, what are you lacking at the moment? guest: there are some bright spots when it comes to investing. the resilience offset some of the weakness, we are thinking about the different stage asia is in the recovery story compared to other parts of the world. obviously, thi

i am vonnie quinn. this is bloomberg. shery: still ahead, we talk about china earnings seasons and the challenges the nation is facing. up next, we discussed investment strategy with the mainstreet cio, the 10 year yield is the leading indicator of u.s. market sentiment. this is bloomberg. ♪ shery: traders are bracing for hawkish talk by the fed this week. >> i think the u.s. does not have quite the same degree as china. in europe, you have the gas issue. there is nothing quite to the same degree we have in the u.s.. it's going to be a slow growth environment, below track. that is why financial conditions are where they are. you have the fiscal drag. plenty of headwinds, but i do not think it's quite as bad as in china or europe. >> how do you expect chairman powell to navigate that? >> is bouncing between two things. he will lay out the case for slowing the pace of increases, 275 -- two 75 basis point moves. i do not think he will be specific about the number, but he will be saying there is a risk of over tightening. i

i'm vonnie quinn. this is bloomberg. >> as global travel slowly reopens, airlines and airports are struggling to curb anger. sydney's airport has been named as the worst airport. let's discuss all of this with the ceo of the industry lobby group. great to have you as always. it's not just a reputational problem for qantas but for the ceo. how did we get to this point? it feels like a problem that was very much evidently in the making as we saw all of the jobs being cut for airports and airlines through the course of the pandemic. >> you have to put this in perspective. it's not a uniquely australian problem, it is happening all over the world. we talk about sydney airport, if you look at the list of so-called worst airports, they are all the biggest airports in the world. the ones that were most likely to see big volume and big problems. i would also say the industry said for a moment it's not going to be a simple as just turning the tap back on. there are some complexities to getting the transport pri

i am vonnie quinn, this is bloomberg. >> let's get you to hong kong for a look at the market. quick thank you. we are seeing a little bit of risk aversion cribbing into the market. a lot of these recession fears playing out here. we are seeing the major benchmarks in the red here this morning but in terms of what we are watching, we have volumes looking very muted this morning. the nikkei is down .8%. we know there is one in china coming up. but also, the u.s.. the headline is it is expected to call here. what that means for the fed is it gives them the impetus to be hiking a lot further and faster. we are seeing investors taking overly cautious role here. another thing we are watching if you bring up the terminal chart, these are big chip names that have been warning of a slow down here. micron was the latest. a big selloff you're in chip stocks extending into asian trade this morning. you can see the philadelphia stock index is back below its 100 day moving average. >> let's bring in our contributor, garfield reynolds. as an investor, how should one understand this? you have

let's get you to vonnie quinn with the first word headlines. let's get you some of those first word headlines. u.s. has its response to the national court the eu says the u.s. responses been harkin which confirmed its now undertaking a detailed assessment of the state department. it says president biden is committed to achieving a diplomatic outcome. president biden has announced a sweeping package of student death -- student debt relief that forgives. he will announce the extension for the moratorium on repaying student loan debts. borrowers can cap repayments of their monthly incomes. president biden: the entire generation has sustainable debt the burden is so heavy that even if you graduate you may not have access to the life that the college degree ones provided. vonnie: thailand's deputy prime minister is stepping up as caretaker leader after the constitutional court made a surprise move to suspend it as prime minister until are ruled their breach of term limit. he said it turns again after seizing power. he has 16 days to respond to the p

i'm vonnie quinn, this is bloomberg. shery: let's return to annabelle for the latest on the markets. here in the u.s., we have some retail earnings giving a boost to stocks. annabelle: were seeing some of the big retailers here in the region also moving forward. walmart said that was the key throughout the morning. after slashing its profit outlook three weeks ago. we are still seeing a high income consumers the amid back-to-school sales. leading to some the big asian retails reacting to that result. it is a big earnings day in australia. we are seeing some of the biggest companies reporting this morning. csl, you can see it dropping at the start of trade. it did report a 6% drop in net profit on the year. a lot of production challenges from the ongoing pandemic. that limited supply for its product. santos is another one we saw, coming in at $1.17 billion. magellan is another company that has seen significant outflows. it ceo says the company is confident in its business moving forward. brambles also looking higher at th

vonnie quinn has your first word news. >> the u.s. state department says the deal on iran's nuclear program is closer than ever. the biden administration will make a formal response to the eu which has described iran's position as reasonable. the u.s. has it is encouraged iran has dropped demands including redesignation of the revolutionary guard. taiwan's export orders felt in july as demand from chinese computers -- consumers plunged. the median estimate was for 6.2% increase. officials are warning of further declines to come. orders fell across major product categories with the exception of electronics which include semiconductors. pakistan's central bank has kept its benchmark target rate at 15% in a sign they may be close to an imf loan approval. authorities expect exports to decline, reducing stress on fx reserves. pakistan is grappling with one of asia's fastest inflation rates. it has prompted the central bank to raise interest rates by 500 basis this year. a top u.s. infectious disease expert who became a household name durin

i am vonnie quinn. this is bloomberg. haidi: the austrian chamber of commerce called for reform on migration as we count down to the jobs and skills summit this week. the e.u. prepares to intervene in the energy markets. we get more on the plans of decoupling gas and electricity prices. this is bloomberg. ♪ >> the european union is preparing emergency action to take controllable interesting prices that have soared nearly tenfold in a year. can they break the link between electricity and gas? >> that is what they hope to do. the e.u. commission president said it is an urgent issue and has to come up with an instrument that decouples gas from electricity. that is something they are going to do in the next couple of days or weeks. drop into the bloomberg annual see the urgency involved. high gas prices have card power prices to increase tenfold and increased the burden on businesses and households still recovering from the pandemic. the e.u. feels compelled to intervene and halt the price rise which they see being driven b

i'm vonnie quinn. this is bloomberg. shery: still ahead, a chief economist gives us her outlook for the u.s. economy and the chances of recession ahead of the payroll numbers. up next, big tech is doing better than feared, but risks remain in the second half. this is bloomberg. ♪ >> inflation >> inflation gets worse. >> inflation is going to stay. >> peak inflation coming sometime in the second half. >> simple reality is we are seeing inflation everywhere. might fall into recession. >> we see a softening of economic conditions in the second half of the year. potentially a modest recession. >> we are watching central banks reaction. >> a mixed of inflation and labor market circumstances. >> turbulent times as you have been saying. >> the shareholders meeting for tesla getting underway. shareholders have approved the stock split. you can see elon musk on stage. this was the big item on the agenda, the proposal for a 3-1 stock split. it has passed easily. the last time tesla split was back in august 2020. there are number

let's get to vonnie quinn. >> good morning. taiwan says it will not bow to pressure from china after they simulated attacks on the main island. china's people's liberation army said they conducted exercises to focus on grand straits. officials did not say if drills will be extended. antony blinken says tensions need to be de-escalated. he is also looking to strengthen american alliance with the philippines. cabinet officials visited the new philippine leader and reiterated their commitment to a treaty. they have quarreled with beijing over the last few years because of chinese increased presence. mass covid testings and lockdowns as another 182 infections were reported sunday in china. authorities say movement will be restricted for everyone. the u.s. senate passed a landmark bill with a slims down bill. it was passed after a year of democratic infighting. 51 democrats voted in favor, 50 against. the bill will head to the house. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists

i am vonnie quinn. this is bloomberg. >> thanks. 30 minutes out from the open in japan, korea and australia. something else, the global aggregate bond index to fall into bear market territory. take a look. this looks at high-grade corporate and sovereign debt. you can see here, very close. a with firm 20% from the peak. what has driven that has been the uniform chorus we heard from policymakers around the world from the u.s. to europe and asia that there is need for tighter monetary policy terrain and inflation. the hawkish fed speak setting the stage for trading in asia. we can take a look at futures positioning ahead of the open. looking at australia, negative territory. new zealand online to the downside. japan looking for a .5% loss. actually, the topic could extend its outperformance against the s&p 500. if history is a guide. take a look, you can see over the past five to 10, we have seen rises for the japanese benchmarks with what you see on the s&p 500. there is no historical trend for trading.

i'm vonnie quinn. this is bloomberg. >> still ahead, miss our interview with the indonesian presidents on his plan to boost his economy. it plus, samsonite makes an impressive turnaround in the first half. we get an exclusive interview with the ceo later this hour. >> we will get insights on the markets. range bound and data dependent are the phrases to watch out for in the coming weeks. this is bloomberg. >> i think they will continue to raise rates. if they get lucky, they can get it right but it's difficult to know exactly where you are because the data is coming with a lag and there could be shocks that come in. i'm sure they won't get it exactly right, that's they are trying to do. if they're going to make a mistake, it will be on tightening a little bit too much. they want to make sure to bring inflation down. >> that was the former fed governor on the rate hike path. our next guest says range bound and data dependent are the phrases to watch for the next few weeks. with this now is deputy cfo of

i'm vonnie quinn. this is bloomberg. ♪ haidi: let's look at what we are seeing across the crypto space. what are you watching? >> ether is the one that we are watching in particular because we did see it jumping as much as 9%. today, still a little higher. the reason is that the ethereum network could be moving toward the most important upgrade of its history. the bottom line is that ether needs to go through one final test before that can happen. many think it will be successful. parties are already being planned. it would then allow ethereum to transition to a more energy efficient system. bitcoin unchanged at the moment. we did see it declining yesterday after coinbase's poor earnings through the crypto exchange is under scrutiny, saying it is being investigated by the sec over its staking programs that allow users to earn rewards for holding certain cryptocurrencies. let's look at crypto exchanges. we did see crypto linked stocks sold yesterday on coinbase results. staking services offered by man

i am vonnie quinn, this is bloomberg. >> let's check in on some of the airlines we are watching in the asian session because china has warned airlines to avoid areas near taiwan as it is conducting military exercises in response to nancy pelosi's visit to the island. we saw an official notice late on tuesday. this according to carriers have received the message and we are seeing a little bit of weakness coming through in some of these green airways and then china airlines is down by about one point 54%. you're watching some reaction to shipping stocks. >> absolutely. this is a huge amount of traffic. it has some of the biggest ships in the world. the difference between a ship and a boat is that ships carry boats and boats don't carry ships. there you go. >> i apparently got some of those airlines mixed up. i am very sorry about that. that is a taiwanese carrier we were talking about. bloomberg has learned that they are pushing back on announcing plans for a north american ship factory. as is between beijing and washington escalate, we will have more on that next, this is bloomberg. ♪

vonnie: i'm vonnie quinn with the first word headlines. china's central bank will strike a balance between supporting the economy and fighting inflation. the pboc's quarterly monetary policy reports warns structural inflation pressure may rise near term. consumer inflation may also climb above 3% in the second half of the year. the report came to same-day data showed july inflation surged to a two-year high. minneapolis fed president and his chicago counterpart charles evans responded to softening inflation data under the u.s. by saying it does not change the central bank's path towards even higher interest rates 32023. in a panel discussion he said he wants the fed benchmark rate at 4.4% by the end of next year. evans agreed saying inflation is on acceptably high. >> the idea that we will start cutting rates early next year when inflation is very likely going to be well, well, well in excess of our target, i just think that is not realistic. the much more likely scenario is we will raise rates at some point and then we will sit there unti

i'm vonnie quinn. this is bloomberg. ♪ >> still ahead -- china conducting military drills around taiwan following house speaker nancy pelosi's trip. we will be joined by our next guest for more analysis. and next, more on the banking strategy with vishu v arathan. >> we are laser focused on getting inflation down, and whether we are technically in a recession right now or not does not change my analysis. i am focused on inflation and where it is likely going. my opinion is that is what we have to focus on right now. >> the president, adding to the chorus of hawkish fed speakers we have this week. take a look at u.s. futures at the moment. under a little bit of pressure after stocks rose on the regular session. solid corporate earnings. more calm after speaker pelosi left taiwan. we also have more positive economic data, the ism services gauge, rising to a three month high. that led to traders pricing and more rate hikes. you can see the two year yield will slightly higher. let's bring in the head of