president xi jinping calls for -- >> the jp morgan trading revenue drop to a new record. >> investors supporting restructuring ahead this week. are raising shell up,

but have bad headlines taken a toll? >> this is daybreak. >> good morning. it is just after 6:00it is justn new york. we are going to be looking at how this plays into the back of the trading numbers that we

securities regulator, msci rc, the pboc will have a greater role in oversight. that internal theme will be prevailing throughout. we don't have a lots of details on how this committee will be run and who will be in charge but the fact that they were sharing this meeting, you can tell this is a priority that goes straight to the top of leadership. also, accountability will be a

big theme of the statement, dereliction of duty if regulators do not spot and dispose of risk properly and timely. that is the main theme. there are a couple of her thing -- of other things because they knocked down forms. they established three it must serve the real economy. it must prevent risks and it must even reform and opening up your that might be a little bit of a warning shot to foreigners who want greater reform, access to the financial services because it has been knocked down to number three. still on the list, but knocked down. as a we debts must continue -- as oe debts must continue to be knocks it down as well. that could mean more ipos, debt to equity swaps. lengthy in some of the

wording of the statements, monetary policy, they have emitted the word neutral. they say they must take a prudent monetary policy. they have emitted the word neutral, which is key. they reintroduced the pledge to introduce a lending cost for the real economy. what economists are saying, by taking that neutral wording out, it means the tightening policy might be waning. quite a mouthful and certainly quite a bit coming out over the weekend and very important. perspective on what we are likely to see coming up from the second quarter gdp numbers out of china later this morning. how that's leveraging and we -- andy risking. >> yeah, that is going to be the big question. most economists think the recovery probably peaked in the first quarter. the consensus estimate is for 6.8% in the second quarter.

not much of a different down. what you start to see is producer price inflation is going to decelerate. that is one concern. also, the property market in the tier one cities, some heaps have been taken out of there. we have seen export numbers quite robust. there is stability and the economy. that is why they are going forward with tackling these risks and trying to deleverage throughout the entire economy, taking speculation as well out of the economy and into the equation. getting this growth back into the real economy. we talked about this to cbrc, he said the m2 number is the key indicator. let's hear from them. >> we saw growth in june at a record low. the government has focused on taking news out of the economy and of getting high gdp growth numbers. reducing risk and also

which since 2015 has already accounted for more than half of gdp growth. betty: i want to ask you, how much more widespread do you think this deleveraging effort is going to be out of china? are they going to apply it more towards the broader economy? absolutely. that is what they have been talking about. the number one priority is the real economy. that has been a big problem. the answer has kind of taken away from the scrutiny but i think you will see a lot more scrutiny and deleveraging with enterprises, not just the financial community and the broader economy. they are worried about speculator investments and risky problems -- products being introduced. after these kinds

of risk to the broader economy because that, at the end of the day, could spark unrest and a bit of financial chaos. they are tackling it now. betty: thanks so much. quite a view you have. steve in shanghai wrapping up what happened over the weekend. also looking ahead to these china gdp numbers, for much more ahead on daybreak, a look at the u.s. bank earnings. this is bloomberg. ♪

>> i'm heidi in sydney. betty: i'm betty liu in new york. let's get a check on the latest business flash headlines. ingper shareholders include some of their stocks to soft banks. the talks representing major

turning point. uber has amassed more than 500 investors in the most valuable startup. the fact that some of them want to reduce their stakes, other troubles to adhere have taken hold. toshiba has a hold off on its memory ship -- memory chip unit. the sale is being contested by western digital which is seeking induction. western digital is concerned that technology will hand -- and up in the hands of competitors. plans amazon's expansion including it's a deal for whole foods are raising questions and washington. wall street is watching. there are calls for hearings on the acquisitions. the implications for shoppers and staff. hedge fund manager has gone short on amazon saying, trust and concerns are going to erode its values. goldman questioned whether tech

stocks are overvalued. in banks, they will be kicking off the week on wall street with big questions about the sectors. three of the nation's biggest banks posted their earnings. jpmorgan reporting a 14% drop in trading revenue. ,t posted record earnings though. it was a mixed picture. is a bigevenue concern, it has been for many quarters. >> cap not a surprise that revenue wastrading down. they posted worse than expected. it was offset by these record earnings. let's take a look at how the stocks were formed. that was the headline, the court trading result. it's knocked the whole sector down on friday, even though there was a silver lining which we will get to in just a second. in terms of what the numbers were, let's go into video if we can and look at the headlines.

banks are certainly being looked tofor the way they are able navigate, particularly on trading. jpmorgan did not come through on the trading and, they are taking they are taking the numbers down. they did post these earnings, they were able to pocket more in the past 12 months than any other banks on record. that is a positive. the question for analysts as they take away the results is, is this bond rebound that has been focused on wall street starting to stall out? that is one of the key questions that will be carried into this week. there has been a lot of concern about the bond a lot, what we are seeing with these bank results is adding to that debate. at citigroup.ook they are closing in on investment banking.

what is the story there? >> a lot of their focus has clearly paid off. certainly with the trading results. while they did not have a strong quarter for trading, they are at the heels of their number one rival which is jpmorgan on that front. a very important profits, it is the expectations for those. i did have disappointments. in general, all of the earnings were somewhat disappointing. the silver lining is that they certainly have been making advances on investment banking. wells fargo, of course, are selling more businesses and continuing to recover from this bank account scandal. what is the latest me know? we are still seeing how it is weighed on the bank is that they lost apparently tens of millions of dollars in business in making deals with many states around the country.

what the ceo said is they are trying to win the business back, the announcement was made after they reported earnings they were going to be doing some of these business reductions which is part of that. in general, take a listen to the ceo. they are positive about the path forward. >> for the largest banks that enjoy these systemic we status, there is not an expectation that bank regulation looks different in the near or medium-term future. it is the world we are living and the we have all adjusted to it. we are able to serve our astomers and we are earning very fair profit and a good return on equity. su: one of the things that came out of this first round of banks is that they all appear to be looking to washington for some direction on regulation and possibilities.ng

that is something that's will be a headline events that will affect the bank as we go forward. heidi: thank you for that, stay with us because over the next hour we will get more on u.s. bank earnings. this is bloomberg. ♪

♪ betty: good morning, i'm betty liu in new york. sydney, youeidi in are watching daybreak australia. and look at what is happening out of australia today. elliott management getting support. has been talking to a couple of the bigger shareholders, among them yesterday really investment company which holds more than $350 million worth of bhb stock. this describes this whole conversation that elliott started about the performance.

--has brought in the focus it has broadened the focus. this destruction of $40 billion in value that they talk about. they also agree with elliott that this jewel structure that hba has is out. they feel the same about the shale assets as well and believes the sooner the hb can get out of that, that is something wilson agrees with as well. healthy and constructive. wilson met with elliott as well. they can't argue with the argument. betty: they could be australia is poised for a fresh wave of mining investment. what is the story there? >> it does not really seem that long ago that the mining now yount boom ended,

have the heavier equipment supplier that there could be an uptick again. a numberalian ceo says of mining companies are looking at buying new fleets of equipment. continue they cannot to maintain production at the current levels. he said this has been driven by a recent rallying in commodity prices. we have seen the bloomberg, entities index briefing up ever so slightly. is 12% above that 25 year low that was hit back in 2016. the government sees australian mining exports holding above $200 billion for the next two years, and sees $25 billion of future projects. saying that taylor previously there was pretty much zero conversation around greenfield. over the past few months, talk

started up again about developing new sites. up. seen the capital expenditures for these mining companies in decline? does this mean we will see a rebound and a increased import of mining equipment? >> the thing about the mining companies is that they are like sharks and they do not continue .o move forward and they die they become exhausted over time. last year, i believe it was announced there would be a new mine to replace the one near the point of exhaustion. nto also approved a new mine and we saw a natural tipping of the resources and this is a thing that has been looked at. >> thank you very much.

let's get a quick check of the islamists/headlines. a hong kong billionaire is renaming his property unit as they diversify away from real estate. the property holdings will be it is also selling a 25% stake in the reliance on the affiliates. property shares have fallen. >> a new energy bid is taking the energy stake and they offered a statement that said capital injections and they went on to say that the companies and cooperate on energies promotion. >> the latest installment of planet of the apes in 20th

century fox. took almoste apes $57 million on debut and knocked spider-man from the top spot. the budget is estimated at 150 .illion and this is the third it is the ninth plant of the apes since the original back in 1968. it is hard to beat the original. >> i don't see enough movies. let's get a quick update on how this week of trading is going. we are going off of record highs, despite a disinflation out of the u.s. and you have the andzealand trading outside we have the u.s. dollar index

and it will be opened higher with the aussie dollar hitting a two-year high and we are watching the starter and this is bloomberg. these days families want to be connected 24/7.

that's why at comcast we're continuing to make our services more reliable than ever. like technology that can update itself. an advanced fiber-network infrustructure. new, more reliable equipment for your home. and a new culture built around customer service. it all adds up to our most reliable network ever. one that keeps you connected to what matters most.

a new weekopen for of trading and we have a positive outlook. it comes to the aussie dollar and the us trillion session. after 6:30 and you are watching daybreak. >> the president supports a stronger role as part of the

efforts to safeguard the financial system and monetize the regulatory framework. he said that a new stability committee and would not define that relationship. he said that this is part of the national security. track andems to be on each economists say they are likely to draw out the process and wait until they slow the pace on bond buying. it takes nine months. the brother of the iranian president has been detained financial unspecified issues. he served as a presidential aide and it is not clear why he has been arrested.

the deal anddemned send the president and his team were too lenient. increase to an equivalent from five dollars. the rise would address unemployment and bolster growth. looks to raise the men on wage rates. global news powered by 2700 journalists. i am rosalind chin. we have the global market its editor and it is a big day to start the week. sales are coming

sense of is a broader what we get and there is not enough to move. we had the ecb on thursday and the bank of japan at the end of the week. the record again will get some big companies that are within their industries and they should be getting a decent start in asia. >> a lot to chew on. >> we think about europe

outperforming the u.s.. and they arehat saying it is about to unwind. the performance is turning and we have seen that happen and there is a difficulty and the question is whether you have missed this already. month, this is the second most crowded trade, according to money managers. there is a sense that people have enjoyed some run-up in the european stocks and the wealth management says that this could continue and we have not seen

the end of this. they are seeing revisions going upand they see a further leg . >> thank you and we will be with you with more on the market. the gdp numbers steady. would be pretty in riskpart of reining as a call. the beige book and before we get to the numbers this morning, i want to talk about the work conference we saw because there weren't any concrete steps.

what did you think about that? >> we don't know how important this will be yet. >> the devils are in the details. this,ou are breaking down you do something positive for the financial system. who knows. -- who knows? the top will call it and they will call the shots. the committee could be feckless. and we could be watching this in a few months. that, we have the economic numbers we are watching in the campaign.

what would you say? >> this is fascinating. ae second quarter will have notch down and we will show a notch of. >> why? andhis is doing pretty good it was a stronger quarter and you asked about the credit and we saw the rates jump to some of the highest levels we have ever had the robust firms have told us they do not believe the chinese government will allow

something bad to happen. they are thinking things are pretty good. yunnan see a change or an impact. >> it is stable and it is slowing down. >> are you delaying the pain? every quarter, it has been stepping up again. is he going to do something about this? they have to restructure the economy. .t is going to be interesting the inventories look at and the cash flows are getting worse.

we have not seen them hit yet. this is probably later in the year. >> want to talk about this chart and how boring the gdp numbers have become. has then like watching paint dry. we have been getting down and it is a little bit pointless. betty asked about when the reckoning happened. what happened to shadow finance? -- are not getting >> you cannot get anything from these numbers.

we talkresting thing is about how things are much worse in the government says. they are trying to talk about slow and stable growth and they sometimes say things that are theye are stronger and decided that it was going to be a beautiful year and it has been an impressive. you look at the inventory data. there will be a reckoning on some of this and it doesn't have to be immediate or too hard, but it will be interesting, because they have to do something about it and they are running out of

levers. >> there are painful reforms right now and it is like taking a knife to your own skin. will we see that? >> i hope so. wheres not a situation they will do interesting things. this is a process they have to start redefine the narrative. there is a momentum in the economy and this is a temporary dip. absolutely not going to happen. and the did the restructuring and all the things to make it stronger. check it out from

thereg too much pain and a the currency crisis and nasty slow down of the economy. lower, you say much define what you mean by much slower. >> most people see this as a we would say the economy is growing closer and they will have to go down over time. >> is that unimaginable? onthe talk about the social -- the social unrest. >> the growth rate is much lower right now.

in wallthey would be andet and things get letter risks are being dealt with. i don't think china will fall apart within. ands on its way to zero this has to be a new once introduction over the next two years. they don't have years and years to do it. >> you would say the average chinese citizen is a raising the growth? >> absolutely. >> good to see you again. moree going to have much analysis throughout the day. we will be joined in the next takennd china has arctic steps to restructure the steel

industry and we are going to look at prices. bloomberg.

>> good morning. >> you are watching daybreak. domesticlew of indicators. fighting pollution, our next it will be six dollars a ton. happy monday. and what wee scene care about is the commodity interest withe's

the stocks in china. is this being a year political stability. there is more adjustment and we are conscious of the poll on the market and we have to be careful. the growth profile remains strong enough to keep an optimist in the market. >> it is kind of bizarre. you look at the iron ore price and this is buoyant. the big part of this is

dollar. >> there is a lack of growth and inflationary drive. >> we haven't seen the emerging balances and it allows this to need is aut the fundamental view of the short run and thinking about the acceleration and growth. continuing get support at a lower price? this demand?ou see is it negligible? >> the trade is what is going on in the chinese market. this impacts the steel market, it is always going to be

chinese demand. next year, they would put in inonger measures credit-driven investment growth. >> it is a poor outlook. we see these impacts and you don't see the rest of the world providing and we see a lot of downside risk from here. >> ok. a lowere people who see iron or price, when it comes to next year. the demand that you are seeing out of china and we were talking

about growth outlooks for china it ally said they had wrong and we may grow at half of the rate reported. could it be that we are wrong about china and we are overestimating the demand? >> possibly. the thing i am cautious about is are alwaysists looking at change over time. overestimate the demand in and ifthis is consistent we are overestimating more now, when you look at the indicators of what is going on and you look and thisventory

suggests a rebalance. when you look at the growth and the production, this gives you the idea that this is growing at a reasonable pace and people pace. be asking about the if you're looking for a i am and price, economist and there is a lot of downside risk. >> thank you very much for that. roundup of the stories of the day and subscribers can go on their customizeand you can . setting to get the news this is bloomberg.

>> good morning. >> you are watching daybreak. aremost beaten-down stocks gaining attention. these are some of the cheapest in town and attract and buyout firms for a bargain. we are joined now. aptlye they so beaten-down right now? therey are forming and are specific issues to focus on and they have had troubles spending to do the same in singapore. the thing that is a common thread here is the national

they soldnetwork and the service and sold it to other companies. they then sell that on to the regular people, like you and me. for themore expensive companies and that has brought these stocks down and is a common thread. mean?t does this what does it mean overall? this is a big sign and investors think there is a it is a telltale showed up with an

official did and it was followed it is hard to pass out the cliché. and there isot to a value here. is value in these stocks. >> indeed. thank you very much. thankful.very >> that is it for daybreak this morning. of course, the top story is china. >> he says that he doesn't one argue too much and there is the

growth we saw versus what we will see in the forecast and he said that it comes to the systemic risk and there is a consensus view that this will be well managed by the government and that they have a good handle on this. this gets more diversified and they move from one asset class to another. andays he is a lot smaller this will be a place for volatility. back at the u.s. banking sector. what is ahead is the trading income and the interest rates are going to be very key. without the fed hiking, this will be a headwind for u.s. financials.

be spoken to the unusual ceo. bieber has a concert this year in singapore. that is it for daybreak.

qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq

♪ asia-pacific markets expected to open stronger, building on new highs in new york. there is the feeling new data from china will show the economy holding steady. >> that's right. they banks kick off earnings season. j.p. morgan trading revenues the kleins, declined, but profits as well. >>