shows, and more. yup, the best really did get better. magnificent. xfinity x1 just got even better, with peacock premium included at no additional cost. no strings attached. ♪ shery: welcome to "daybreak: asia." haidi: we are counting down to asia's major market open. over theeeds later detention of an australian journalist. facing a also recession and extended virus lockdown. tesla surge, adding $100 billion to their market value.

the outlook for japan as shinzo abe prepared to step down. we discussed the future for global relations with the american chamber of commerce in japan. shery: breaking news out of south korea, the final gdp numbers for the second quarter. south korea contracting quarter on quarter 3.2%. this has been revised upwards from an estimate of 3.3% secondtion, still a quarter of contraction, quarter on quarter basis. we are in a technical recession for south korea. when it comes to the year and your numbers, a contraction of 2.7 percent, also revised upward from a previous estimate of 2.9%. we are seeing now the beginnings of recovery in private consumption. we've had government stimulus measures not to mention strong public health response to the coronavirus pandemic, but the risks are there. we continue to see the outbreak

in south korea and globally. that has affected exports and demand for south korea and a plunge in exports, the biggest drag on growth. we are getting trade numbers for august and about an hour. for now, the second quarter manufacturing for south korea has contracted 8.9% quarter on quarter. wholesale retail trade accommodation and food services also a contraction of more than 3% on quarter. let's see how we are doing in the markets, sophie cameroon is in hong kong. -- sophie kamaruddin is in hong kong. sophie: we see weakness for the kospi, focused on whether the boj will take action after it announced it will buy 1.5 trillion yuan in debt. and yesterday we had india with the largest gdp

slump among major economies in the second quarter. we've also seen a rise in indian bond yields. asian stocks could falter after wrapping up the best august performance since 2003. japanese futures lower as well, the yen below 106, focused on politics. belowssie dollar holding 74. a quick check on the pipeline in asia, september 10 will be up as a day. china started -- to start trading in hong kong. opens forscription the gaming unit priced at the top of the range, and here in ngfu springs set to raise $1.2 billion. haidi: beijing has detained

australian journalist without charge. get the latest from our managing editor, and johnson. we were speaking -- ed johnson. about this, and it looks like the journalist was caught in the crossfire. what has been building in recent weeks? ed: that's right. it is hard to see this in any other light. relations between australia and china have been in the deep freeze for more than a year. - forbida for bid - huawei from taking part in 5g in the country. there was also a probe into the origins of covid-19, and we've seen rapid measures china has taken since. they have warned citizens about studying or holidaying in australia, imposed tariffs on

arley, started a probe into the wine industry and just yesterday, another probe into wine subsidies. it is understandable this is being seen in light of a continued slide between these trade partners. shery: is there a way back from here? ed: that's a really good question. obviously it is an an important relationship or australia and china as well. been powering the economy for years and is even were crucial as we slip into a recession. it is hard to see the relations eating -- relations getting onto [indiscernible] china has a more muscular approach under president xi and there is support for prime minister morrison to do that. we would like to see more flashpoints on the horizon.

[indiscernible] scrap agreements with foreign powers. that is code for china's agreement it has reached with state territory agreement -- territories in australia. signpost between the two countries and likely to provoke more backlashes from china. our editor in sydney. let's turn to karina mitchell for the first word headlines. karina: germany set to see economic fallout from the coronavirus not as bad as expected this year. the government said in april the economy would contract by more than 6% before rebounding by at least 5% next year. that would be germany's worst recession since world war ii. the economy minister will present the new forecast later

tuesday in berlin. however, italy has seen its economy shrank by more than previously forecast with virus lockdown's in the second quarter hammering growth. the statistics euro says it declined almost 13% in the three months through june, with consumer spending leading the fall. the numbers are worse than expected and the italian economy is now 17.7% smaller than a year ago. than $6 billion in new trade as it moves to normalize relations with gulf states. this follows an initial accord everuae and the first direct -- with the country. deal withs talks will tourism, trade and finance. global news 24 hours a day on air and on bloomberg's quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. ahead, jobs and

spending data due out for japan later this hour. plus we have top guests talking about the market outlook ahead of the rba decision. be checking the playbook on it comes to stock lips. -- stock. this is bloomberg. ♪

♪ a better-than-expected earnings season has created the best august and 17 years for asian equities. take a look at this chart, the msci asian on track for a fifth straight month of gains. this trick will be tested this week with a flurry of eco-data including pmi numbers from a number of emerging markets. joining us is a strategist.

great having you with us. can emerging markets really trust this august rally given there are so many risks around the corner, whether it is china-u.s. tensions, or u.s. and india, australia tensions? >> there are certainly a lot of banana skins on the way, and knowing on the back of what has been a strong rally would be more challenging. but fundamentally you are seeing improvement in the global economy and that flows through -- performingike struggling. and as the u.s. dollar weakens an interest rates go down, they are looking for opportunities outside of the u.s., fueling some of the money shifting into the emerging world, which i think will continue. the pace might not be the same. the -- doesn't matter that the global economic recovery that, that it is strong

index risinge above 200, surprising on the outside but we are coming off of an and president global pandemic. kerry: the level of surprise and the economic data that we got at the beginning of the season has helped fuel the rally. that may start to wane toward the end of the year, especially in the u.s.. still be markets looking for better prospects into 2021. risk think the biggest right now is the valuation maybe don't measure up to what we are seeing in terms of earnings. there may be some disappointment there. the theme of american exceptionalism when the equity markets are -- with concerning equity markets, does that continue? kerry: the market really is

really down to what we are seeing in tech. for that to change we need a vaccine to be widely distributed or at least distributed in many countries around the world to feel the rotation. i think there will be ramifications from the u.s. election, particularly the implications around corporate tech, whether it is regulatory changes around health care and energy and technology. depending on the state of the economy, the changes may be deferred until later when it is stronger and the markets can withstand it, or it may be a case that it may not clear up until november. haidi: looking ahead to the rba and fiscal doing morrissey heavy lifting -- and fiscal doing more of the heavy lifting. when it comes to the australian market, you talked about the

preferences of tech and the overweight tech story in the u.s. could see smaller gains or a pullback when it comes to trading here? kerry: if you look at how the australian market performed so far this year and has lagged the u.s. and some european markets as well, not all but some, and it is due to the weight on the market, the financials and performance. but again we are in the situation where we are seeing a recovery in the economy and we've had to deal with the second wave, more restrictions and closures of orders. we get the gdp figures later this week and they will show we did have a recession but that is meaningful since we have the restrictions. it's really about how the economy progresses from here in the markets behaving on that. it really does come down to fiscal stimulus and a continuation of what we had an leading to a pickup in business. a consumer that is happy and

healthy and wants to continue spending and the economy. shery: what is the risk of a fiscal cliff in australia or the u.s. when we see the political gridlock over another round of stimulus measures? fiscal stimulus cliff, it will deteriorate over the year. it will not be as strong next year as this year. year on year comparisons, it comes down. you would hope the need for the fiscal stimulus is not as strong as the recovery is standing on its own two legs. consumption and economy becoming more stable. haidi: always appreciate your time. we are getting the latest numbers out of victoria, five new virus deaths in 24 hours, 17 risk cases in the past 24 hours -- 17 new virus cases

in the past 24 hours. we continue into another week of the strict lockdown across melbourne and greater melbourne. of days agoa couple that there will be discussions held toward the end of this week or a little later as to what the route out of the current lockdown will be and what the gradual loosening might look like. we are seeing a lowering of case numbers out of victoria. much more to come on "daybreak: asia." this is bloomberg. ♪

♪ haidi: the u.s. continues to be the epicenter of the coronavirus, casas topping 6 million, the most in the world. india is a hotspot. our health reporter has the latest. how do you characterize the current spread of covid-19 in the u.s.? in the u.s., we are seeing an increase across the country, but the hotspots of come down, so it's like a democratization of coronavirus across the u.s.. definitely still a concern because we have this increasing rate but it is spread out and a little more able to handle it, we are not seeing overwhelmed hospitals. shery: let's talk about vaccines because we continue to see the

spread months into the pandemic and it is getting exhausting. one is starting final stage studies. where does this fall in the race for finally finding a vaccine? michelle: right, there is some good news that one company expects to get results in the next month for mid-stage studies. and therebe good news are other trials underway. modernaeeing pfizer and trials underway. 30,000 through 60,000 patients in these trials. are startingtudies in the u.s. as well, so there are number of trials in the next few months. shery: a lot of concern in the u.s. that haps element of vaccines is driven by politics -- development of vaccines is

being driven by politics and not safety. what are we hearing right now and how much longer do we have to wait for approval? michelle: there are some critical concerns about the politics starting to leak into the need for a coronavirus vaccine. we are seeing the head of the fda has said the agency will make a decision and they do feel comfortable to make an emergency authorization for a vaccine before we have any of the phase 3 study results in. there is concern and there was a poll, a report came out, a where it said both republicans and democrats are concerned that a vaccine might get approved based on things that are not just driven by science. when you go to the companies themselves, they have said they know they are on the mat. that it is not just the only product they sell, and they will not go to the fda and less they

are convinced they have good results. remember, we have clinical trials underway hopefully they will wait until they see definitive efficacy data until they seek approval. shery: our bloomberg health reporter. earlier, we spoke to the vice dean of the johns hopkins school of public health. he gave us his thoughts on u.s. efforts to get newtons back in the classroom. >> it has been pretty remarkable , at different levels. university doing different things, some online and others coming back. >> i look also at the statistics, i happened to look at wonderful work including john tom and data, and -- johns hopkins data as well. deaths remarkably diminished

from where they were in new york. why are we opening quicker if we see such good statistics and statistics?nds in >> where the numbers have come down in as possible to open with precautions. i think that is the lesson from around the world. many cases arein debating the precautions about what is practical. i think it's possible and kids really need to go back to school, young kids. i think it's the right thing to do in areas where cases have come down. thee are a lot of places in u.s. where that has not happened and we opening is not the easiest thing to do. texassee statistics in and florida a long way from the quietude of new york. the other thing i am seeing is the effect of the pandemic on the colder season.

buy the weather dynamic that we should be concerned about in october flu season over the pandemic? hopefully people are concerned and will take precautions because that's what we need to do. i think it's hard to say. and maybe easier in the cold weather but just like we saw it holder -- harder over the summer, i think it will matter how people behave. if people take more care, everybody will be better off. we will even see fewer flu cases. >> it's fascinating the difference between america versus any other nation or culture. does america have the backbone to put in the strict ideas to get us back to an economy while

we wait out the pandemic and wait for a vaccine? do we have the sense of rule and will toward rules? >> i don't think we've had the leadership to do that, candidly. i recently wrote a piece in foreign affairs about this. hearnk that when people mixed messages, and we have not just about the pandemic and when it is over but how to protect yourself like wearing a mask, it is hard to get to the place where people are committed to doing what is necessary to , to get the cases down and have a more stable economic recovery. the johns hopkins school for public health is supported by the founder of bloomberg lpm bluebird philanthropy. let's get a quick check of the

business flash headlines. in hong kong, interest from investors and it may receive the funding it needs by the middle of next year. this comes as hong kong reported a first-half net loss, up from a year ago. earlier this month, the company said it suspended payments to creditors, blaming a cash crunch. ever grand is seeing debt rise this year even after vowing to make itself a leaner company. it's debt swelled. showing this was on weaker cash buffers. there were plans to cut the debt in half in the next three years. yum china has launched a stock and the hong kong, stock will continue to trade in

new york but will enter the hong kong exchange. to company is seeking up $2.5 billion u.s. in the sale. coming up next, the latest unemployment numbers out of japan. we will then speak to the head of the american chamber of commerce in japan. resignationzo abe's signals the end of an error for relations -- an era for relations between washington and japan. we will also be speaking with up.r guests, coming will discuss the future of hong kong. this is bloomberg. ♪

♪ welcome back to "daybreak: asia," we have some numbers when it comes to japan's labor market. we see the jobless rate a little bit lower than expectations, 2.9% is the jobless rate, rising from the june number of 2.8%, but lower than the expectations for 3% for july. expected, a as little lower than june as well. we continue to see the labor market slacken in july, franchise in covid-19 cases and

the affected job offers and services sector, especially pandemic impacted areas like entertainment and tourism. that sector is expected to continue to be impacted. toexpect the employment rate reach a peak toward the end of the year and fall gradually lower next year. shery: we also have breaking news out of south korea. we are hearing the government is planning to sell up to 172.9 won.lion they are planning to increase the budget by 8.5%. south korea trying to boost the economy and we've seen many stimulus efforts and south korea. debt to gdp ratio in 2021 as47.6%

south korea continues to reining in the coronavirus pandemic and the financial fallout. we just got gdp numbers for the second quarter. contractingrsion less than anticipated but to -- but still contracting 2.7% year on year. in half an hour we will get the august trade numbers and we will keep you updated on that. haidi: let's get back to japan. president trump has praised the outgoing minister as the greatest prime minister in japan's history. call thatld abe and a the u.s.-japan relationship is better than it has ever been. whatnew leadership will -- will new leadership mean for the business community? our guest is with us. we see some settling down with the yen as market seem to expect continuity. is that enough at this point?

omics is bold but only partially successful. does his successor need to be more bold? >> there's an argument for efforts in the-- structural reform prime minister abe began. successor dedicate him or herself to pursuing that policy with greater vigor would be encouraging. right now we are in the middle of the pandemic and the economic impact of that has been substantial in japan even though the situation here in terms of the health care is better than a lot of other developed economies. onot of folks will focus

continuity with the fight in the near term being to defeat the pandemic and to get the economy on a stronger footing. the u.s.-japan relationship stands out, particularly as we see the u.s. on a more negative footing with other countries like china. do you expect who leads japan next will continue to push that relationship? undone withleft regards to trade when prime minister abe is walking away with the tpp a success. >> i would expect successors to sustain the strong momentum the u.s.-japan alliance has achieved under mr. abe's leadership. that heno question brought to the office strong

convictions of japanese foreign policy and was able to revive japanese policy in significant ways and the keystone was to make the u.s.-japan alliance even stronger, which he certainly got. his successor, any who expressed an interest at this point, to maintain that effort. beond that, minister abe can credited with having brought the pan into tpp. -- japan into tpp. when he came into office it wasn't clear what direction japan would go and he managed to win over the agricultural constituencies and others to push forward with the tpp agenda. even after the u.s. withdrew, he was the one who led the effort among the remaining parties to forge the current tpp arraignment -- arrangement. he gets a lot of credit for that.

successor, we will have to see who it is. it looks like the chief cabinet secretary has the lead at the moment by a significant margin and i assume if it is him, since he has been the number two in -- abe's government from government for the last six sees, i can expect we can the u.s.-japan alliance and japan's international trade policies continue. shery: will japan-u.s. relations the on firmer footing if we have a democrat in the white house? the u.s. withdrew from the tpp and japan came under threats from the u.s., the trump administration specifically. not to mention the u.s. has asked to quadruple u.s. troops in japan. they had a strong relationship but japan has wrestled with this

administration. history, look back at you will see whether it was a democrat or republican and office, the u.s.-japan relations have been one of the keystones of u.s. policy in the asia-pacific region, and whoever wins, i don't expect that to change. there is no question that mr. view had a very aggressive about what needed to be done vis-a-vis japan in terms of getting japan to pay more, on trade or defense, and i would expect a second trump administration to see those issues come to the fore with more salience. abe islar now that mr. gone and the stressful relationship they had managed to form would be a thing of the past. that is certainly something we would need to watch out for in the future.

if joe biden were to win, i think he has laid out perhaps a somewhat different perspective on where the u.s. would go with friends and allies and on global trade issues and we will have to wait and see what the election produces. the japanese i think are prepared to roll with it either way and hopefully whichever way it goes, we will have a stronger trading system in the asia-pacific going forward. shery: just quickly, give me your take on japan as not only a business hub financial hub. we are hearing from the financial regulator that they want staff to brush up on english skills to be able to attract more financial companies from the likes of hong kong. is this a possibility for tokyo? how much of the redtape has prime minister abe cut and what more do you want to see? chris: mr. abe deserves a lot of

credit, probably more than he is getting at this moment, as people look back at history, for all of the things he did to push forward structural reform. many of those things are still yet to be fully accomplished, but he really gave them a tremendous head start and momentum and we can only hope his successor is going to continue to push those actively. for our business members in japan, we definitely on to see phase two of the u.s.-japan trade negotiations move forward with speed and energy. inever wins in the u.s. november and whoever is prime minister. shery: always great having your thoughts. -- director general of the world trade organization has come to an end. the economist who helped negotiate a deal between the u.s. and canada has experienced

to leave the wto but faces obstacles. his career spans the world bank, imf and cities in china. he talked to bloomberg about bringing the u.s. and china back to the negotiating table. trustre are worries that has been lost among negotiators and that has turned itself into no negotiations [indiscernible] -- not functioning anymore. on top of the pandemic and the u.s.-china crisis, [indiscernible] >> if you were able to get people talking, how would that affect the u.s.-china trade war?

look to trying to find ways to help them in their battle. [indiscernible] not decided by the countries. leader that knows the different sides well, which i do. [indiscernible] with thegotiated a lot united states and china and europe. i seek to bring them to the table and find ways to move forward on negotiations. [indiscernible] >> doesn't feel like they want to talk to each other, though. how would you get them to come to the table? everybody has to talk when you are negotiating. i cannot imagine china not wanting to sit down. [indiscernible]

exist,wto ceases to china would be the main one suffering. to seere they would want how to work it out. [indiscernible] you haveh language but the main leader and beneficiary of system over the years. beingould be confident able to bring them to the table to figure out how we move forward from here. >> how do you feel like your role would play in something like tiktok that is not necessarily trade but it is intellectual property and becoming part of the trade war narrative on the technology side? how do you think you could play a role in that conversation? >> on technology questions? >> on tiktok. if china doesn't want to sell the u.s. portion of tiktok

because of the ai and etc. >> this is a specific issue that is for them to work it out. to take.s. is looking over, it happens all the time, corporate takes over. it becomes a u.s. controlled firm, it would be fine. if anybody is placing obstacles on that -- it is a complex issue but it is a competition. [indiscernible] >> less of an issue for you. have you spoken to the u.s. trade representative, robert do theyer, and support your presidency? >> those things are confidential and i cannot say whether he supports my candidacy. we work very well. theust worked out

u.s.-mexico-canada agreement. it was mainly he and i negotiating and very successful. i respect him a lot and i think he is very competent but committed and focused man. me.st hope he can support was mexico's deputy prime minister for north america speaking with alix steel. let's get the first word headlines. beena: as you've reporting, china has detained an australian reporter as relations between the country sour. notifiedsays they were she was arrested but has not been charged with an offense. she could be in detention for six months without access to a lawyer. in other news, damage from hurricane laura in the gulf coast and caribbean could cost

as much as $9 billion according to risk modeling firms. categorye ashore as a four hurricane with most damage spread across louisiana. however, the storm surge was not as powerful as first feared. india has reported the biggest economic contraction among major economies with a surge in covid-19 infections and dragging on prospects for recovery. gdp shrank a fraction under 24% in the june quarter from a year earlier, the sharpest fall since new delhi began publishing records in 1996. it is worse than any other leading nation tracked by bloomberg the median analyst estimate was a contraction of 18%. global news 24 hours a day on air and on bloomberg's quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. and tesla doapple the splits as investors pile in, but they are expensive no matter which way you slice it.

more from our guest just ahead. this is bloomberg. ♪

♪ haidi: let's get a check of asian markets with sophie kamaruddin in hong kong. sophie: nikkei futures in

chicago edging slightly higher. this as we digest the latest jobless rates from japan, 2.9% in july. the yen around the 106 handle, the worst risk off tone for asian stocks, setting up a down day for stocks elsewhere to contend with. australia consumer confidence has turned negative for the first time since may and gdp numbers from india soft as well. pulling up a chart, we are bok withthe be ok -- the won under pressure. the government preparing to 2021 its budget by 8.5% in with the finance ministry set to to sell debtas -- next year. with its gaming unit

and retail subscriptions opening today. the institutional offer is reportedly about 1500 times oversubscribed, drawing more demand than estimated. turning to phone makers, highlighting samsung mobile smartphone market share has hit a high amid the u.s.-china spat. bloomberg intelligence warns that slower economic recoveries post lead to a lackluster epidemic bounce for samsung and peers. we are watching battery makers as well with tesla on a tear. hot for korean making thestors, group the 13th largest list of shareholders for tesla shares. shery: retail investors rejoicing at the split between

apple and tesla shares, both surging to new records. one shareholder who enjoy the run-up is ross gerber. he joins us on the line from santa monica, california. great to have you on again. gainse seen these massive and you've been a long-term holder of both apple and tesla. have you taken some profits? ross: well, it's been quite a fortunate time for me as they are my two biggest holdings, so i've had to take profits because when you get these kind of gifts and you've been doing it as long as i've been doing, you've got to take some money off the table or valuations are incredibly stretch. we are working with asset bubbles right now and we think the bubble will last but we are also prudent investors. long-term, we are huge believers and tesla and apple, more so tesla, and we have no intention on selling our position but

we've had to take some profits. tesla up 50% since the announcement of the split and they will likely get included -- up 15% since the announcement of the split and they will likely get included in -- ross: psychologically being part of the s&p is an honor and oneness tesla deserves. secondly, it forces a ton of buyers to buy the stock whether they like it or not because of the way indexes work. ironically, at the highest price tesla has been. it is a nice thing because as a tesla shareholder i think it will help broaden the base of shareholders and read more stability as well, and of course be a constant flow of funds into tesla stock. the dot-come done

boom and bust. what is different? ross: what is different is things were good during dot-com. earnings were going up 20% year and the s&p. right now we have the worst economy i have seen in my life and yet the market's at all-time highs and we see a bubblelike environment with a lot of individual investors taking of investing all of a sudden. a lot with stimulus funds. we have interest -- entered an interesting stage that is not comparable in america where we have a stock market whom while having -- boom while having an economic bust. we don't think that ins well -- ends well and in the end you have to have a real economy. i don't think this is a real market.

but we've made a ton of money on the equity side because we are technology investors and we are still very bullish on the stock market because we think there's no other gain until rates go higher. haidi: the thing is, there are two aspects, you talk about the bifurcation or the split between the real economy and the stock market, we will be talking about that sometime. but at the same time, everyone talks about there is no other mo tradeve, the foam or whatever -- fomo trade or whatever. do you just expect it to outperform? ross: no, actually. relatively,ou look china looks attractive based on whether stocks are with their economy. i think china is decently attractive. that being said, were not doing a lot in china at this time because we are still riding u.s.

stocks. but i think if you are a traditional valuation investor like me and i'm not going to change what i've been doing for 30 years just because were in another bubble, you should have earnings going up 26% that we have earnings going down 26%. i just don't see where the stock market can go other than just throwing capital in at higher valuations. upside potential but in the end, the stock market and economy will come together again, whether the economy gets substantially better, which is what we hope, it will help that problem, or the stock market will go down substantially, another solution. what we suspect is the economy is stronger than what people think. haidi: always great to have you with us. ross gerber there with us. we have some more japanese data crossing the bluebird.

bloomberg.e capex numbers, year on year in the second quarter at a contraction of 11.3%, far worse than estimates. aey had been looking at contraction of 4% and it is more than 11% in the second quarter. a nosedive when it comes to the prior rating of 0.1% growth. we are seeing contraction of 10.4% elsewhere, much worse than expected and a significant deterioration from the first quarter. we see the pandemic effect really start to play out not just across the state about also industrial profits, they have been dire, employment numbers continuing to contract as well. check let's get a quick of the latest business flash headlines. a $3.5h utility says billion bid is too low and they will not accept the proposal as

it stands. we are told will study the offer in the coming days and may seek a higher bid. they want to create a global waste and water treatment company to stay head of rising competition from china. highertial bid is 27% than friday's suez close. fundraisingted its program almost 20% amid an investor frenzy for electric vehicles. company soldbased more than 8 million adrs. won new investment from a chinese city. raised its annual revenue forecast and is signaling confidence that users will continue to flock to its sites. in the fiscallion year through january, almost half a billion more than

analysts were expecting. zoom is a clear beneficiary from the coronavirus pandemic. we have plenty more to come on "daybreak: asia." this is bloomberg. ♪

shery: welcome to "daybreak asia ," from bloomberg's headquarters in new york. i'm shery ahn. haidi: i am haidi stroud-watts in sydney. our top stories this hour, asian markets enter a new month in cautionary mode despite gains overnight on wall street. investors are concerned rules in china could derail tiktok's potential sale. korean government debt could reconnect -- could reach a

record next year. the budget exploring to more than 46% of gdp. we talked biotech amid the pandemic as hong kong sees a wave of health care related listings. we are joined by the exchange ceo. shery: breaking news out of south korea. we are getting the latest trade numbers for the month of august. exports contracting 9.9% year on year. a smaller contraction than analysts had expected but it is still a contraction that is more than the previous month. we saw three months of improvements when it comes to the export declines. it seems to be reversing a little bit. when it comes to the import numbers, a contraction of 16 point 3%, much more than analysts had expected. we continue to see the outbreak and south korea's coronavirus continuing. the trade surplus narrowing from the previous month to 4.1 billion u.s. dollars. it is still a wider surplus than analysts had expected so the numbers are better than what

analysts had expected so not as good as they were the previous month. we have the gdp numbers for the second quarter in south korea, which were revised upwards but south korea continues to feel the pressure not only from the outbreak of coronavirus inside the country but also outside the country, which is putting pressure on export demand, haidi. news: we have breaking crossing the bloomberg with regard to this content sharing parcel between the big tech giants in the u.s. and australia. the consumer watchdog. facebook is threatening to cut off australia from being able to share news on their feed. facebook planning to block people as well as publishers from sharing news which is pushing back against the proposed law that anticipates forcing the company to pay media companies for their articles. this escalates the antitrust battle we have seen develop between facebook and the australian government. the australia government wants giant tol media

compensate publishers for the value they provide to their platform. that has to be approved by australia's government. facebook saying that the proposal was unfair and would allow publishers to charge whatever price they want. we are reporting that they made this decision to plan to block people from sharing content. we will get more details on that story as they get to us in the meantime, let's check in on the market opens across asia with sophie. sophie: let's start off with south korea, given the gdp data that we got along with the trade figures and the focus is also on the government's plan to boost its debt issuance which has weighed on bonds and putting pressure on the bok to buy into yield.year india's policymakers are in a similar situation. it comes to price action in south korea, the kospi adding .6%. chipmakers like samsung and sk hynix gaining ground as we saw

the august chip exports rise merely to percent on a yearly basis and the korean won is gaining ground by .1%. let's switch out the board to check in on the open in tokyo. the nikkei 225 little changed at the start of trade. 106 as hovering around we digest the latest jobless numbers coming from japan. the un employment rate coming in at 2.9% for the month of july. moving onto australia, the asx 200 losing ground. seeing above 6000. bonds holding steady before more data from down under. we have consumer confidence turning to negative territory for the first time since may. also on tap, the rba decision expected to leave settings unchanged. as colleagues point out, the rba decision could be bullish for the aussie which currently has then in the hour following past 12 rba decisions p or holding near a two-year high.

check out the offshore yuan holding steady. we also weighed on china's tyson manufacturing pmi along with a series of regional pmi numbers out from asia. factory activity has stalled in contractionary territory for most of the region. haidi: let's get more on the markets with mark cranfield. what are traders looking for when it comes to signals as to where the greenback goes from here? will the lower dollar be around for longer? mark: positioning is clearly against the u.s. dollar. we have seen several weeks now the dollar declining and positioning against it has been getting bigger and bigger. people are certainly concerned. it is to skewed in one direction but it would be quite easy for the dollar to have a bit of a rebound as soon there is something slightly positive on the dollar front. it would make a lot of short positioning come into play and

that is something people are watching very closely, particularly with the euro. the long positioning on the euro has become very large, biggest for a couple of years. people are concerned it has not broken above the 120 level against the dollar benefits to do so, we would see a decent reversal in the euro. a wider period of dollar strength. that is certainly somewhere people are looking for. what the exact catalyst will be has something to do with the u.s. election and the disputes between the united states and china or it could be something which comes completely out of the blue like the reversal in u.s. equities which will mean people become defensive on the u.s. dollar. built into got a lot dollar positioning and it would not take too much for something to come along and persuade them that it is time to trim that positioning quite a lot and we could see a decent sized reversal and climb in the u.s. dollar in the coming weeks. shery: on the others of the

coin, we have yuan strength. we continue to see gains, at the strongest level since may of 2019. we had pretty strong pmi numbers. take a look at the gtv chart on the bloomberg, showing the industry came in at the strongest level since 2018. we are expecting the numbers as well. how much of all of this has already been priced into mainland assets? mark: a fair amount probably has been priced in. there seems to be an assumption by a lot of traders that china has done so much better than other countries, getting the coronavirus under control, getting their economy to reopen again, and the domestic growth in china seems to be doing a reasonable level, so people are fairly confident that even though world trade might be a bit slower, trade within china is still at a decent enough level to keep growth going, and you see some of that is reflected in the stock market, and some in the strength of the yuan.

even though we have more pmi data today, it will probably take a shock on the downside to affect the yuan and chinese assets too much. we saw yesterday's pmi numbers well above 50. even the services at 55. people will be expecting well above 50 for the numbers again today. divergence that will probably keep china assets fairly happy. what they will be more concerned about is that things like this dispute over tiktok and other u.s.-china related matters does turn even more sour. more specifically damaging. there is a lot of talk, trying to put some restrictions in place but we have not seen yet a very specific trade action kind wechina, this signed 2018. if we get something like that, china assets will react probably a lot more than they will do to any of the data which is coming up in the near term. it is a question of what happens more on the diplomatic front,

probably rather than the data, which is going to drive chinese assets in the near term. shery: mark cranfield from singapore. follow more on the story. that is on the bloomberg. mliv . let's turn to karina mitchell for the first word headlines. karina: we start with the pandemic. global coronavirus cases are heading towards 26 million with the u.s. tallying outstanding above 6 million. astrazeneca has begun widescale human testing of a vaccine in america while the european union is to contribute 400 million euros to ensure equal access. canada is by 100 million vaccine treatments from novavax, and johnson & johnson as the who says the only solution is unity. hong kong is launching a mass testing plan amid calls from activists and health-care workers for a boycott. point 5 million residents have volunteered for the test, which will be conducted with the help

of china. it is billed as an attempt to ward off infections that some critics are wary of the government's motives amid widening public distrust. germany is set to see the economic fallout from the virus not being as bad as expected this year. the government said in april that the economy would contract more than 6% before rebounding by at least 5% next year. that would be germany's worst recession since world war ii. ther on meyer will present new forecast later tuesday in berlin. however, italy has seen its economy shrank by more than previously forecast with virus lockdowns in the second quarter hammering growth. the statistics bureau says a decline was 13% in the three months through june with consumer spending leading the fall. the figures are worse than expected. the italian economy is 17.7% smaller than it was a year ago. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries.

i am karina mitchell. this is bloomberg. haidi. haidi: still ahead, an exclusive interview with the chief bioteche, head of the summit. we will be talking about the surge in health care related -- 2021 korea boosts its budget and reports eco-data. we will get reaction from bank of america's economist, kathleen. this is bloomberg. ♪ ♪

shery: south korea reported trade data for august in the past few minutes. exports fell 9.9% year on year. slightly better than the forecast contraction of just over 10%. imports contracted 16.3%. worse than the estimated decline of 14.9%. we are joined from the bank of

america securities economist, kathleen oh. great to have you with us. we have seen three months of improvement for the trade numbers in south korea. it seems we are backtracking a little bit. why? kathleen: this morning's falling, exports negative nine point 9% from -7.1 in july is largely due to the 1.5 more working day. when we look into the per day, which shows the underlying momentum, that improved to negative eight percent from negative seven in the previous month. i can say the recovery trend is continuing. it is continuing very slowly but the trend is there. detailslook into the that comes out into hours, we can tell by region and industry just looking at the headline and the major product

base and putting semiconductor. we can see that recovery momentum is still intact. very gradual. shery: is that also why we saw a slight revision upwards when it came to the second-quarter gdp number? kathleen: the second quarter gdp ,umber, the revision upward mostly due to the facilities. very slightly on the private consumption side. actually, the external demand continued to show a slowdown in the second quarter. it was -13% over a year. is not the revision particularly showing a different narrative from the previous preliminary number. we continue to see the rebound in the private consumption but the external demand continued to show deterioration i think.

overall, the slight upward revision is not significantly showing too much of a positive news. is there a concern we are starting to see the robustness of the chinese economy start to level off, and what are the implications for the external demand part of the story? kathleen: sure. previously, the rebound in the chinese demand was showing some hopeful picture. looking at the china data, although the rebound did pull up korean exports, for august, it did fall back to -3%. overall, the increase was due to the pent-up demand from the lockdown in the first quarter. obviously, the slowing global demand for china as well should play into contraction from imports from korea to china and

the expectation is that although the recovery in china should be helpful to korea exports, though momentum is likely highly dependent on the global recovery, especially the demand in the u.s. and europe. how do you rate the domestic demand story in terms of the consumer story? we expected a rebound in the private consumption for the second quarter, which we did witness, but for the third quarter, at least that is when the government's consumption voucher was still in effect, so the rebound story would have been likely to continue, but at least we thought it would come down a little bit for the fiscal effect, but recently, we did see the local resurgence. the government is quite worried about the further spread of the

infection on the sentiment. they are talking about the supplementary budget and targeted consumption voucher payout again. materializes, that could be helpful for the fourth quarter rebound of the private consumption, but without that, the local resurgence story is pretty detrimental to local consumption and household incomes. >> in the meantime, we are seeing the government do what it can. the finance ministry saying they will sell off to 173 trillion won of bonds to fund the 2021 budget. anteuch did this up the the bok to curb rising yields given that we will see the bok sort of being bound to help ease the government financing burden? kathleen: yes.

nextincreased issuance for year. it does come in as expected with the local resurgence and the by the very much hit covid infection. encounterment has to the risk to the economy. the aggressive expansion however of the budget can only come from the issuance now that the revenue is falling in the corporate earnings have been slashed. the increased amount of the issuance actually does roughly come in in the expected range as well. now, this will have to prompt the bok to be slightly more proactive in terms of purchases. although they did show a passive stance that disappointed the market. the npc just last week. onwards,ext year and

this will definitely encourage the bok, especially when the bok has very limited room to go further amid policy rates. always appreciate your time with us. bank of america securities career economist kathleen oh. let's take a look at one of the stocks moving in the right direction in seoul. shares jumping to a two-year high after the kapok group. song, hot 100. 25% stake in bts. we are seeing the stock up by 2%. 2.5% at this point. coming up next, ties between china and the u.s. continue to sour. we will have the latest on that developing story. this is bloomberg. ♪

haidi: tensions between

australia and china are rising after revelations beijing has detained an australian journalist without charge. it's get the latest from our managing editor, ed johnson. it could beike another tit-for-tat measure by china. ed: good morning. that's right. according to the abc, he has not been charged but could be held in a designated location for up to six months without access to a lawyer or assistance. and you are right. it is very hard to see this in loopther way than another of the downward spiral in relations between australia and china. relations have been in the decrease. huawei from its 5g network. of course, it got worse -- scott morrison called for a probe into the origins of the covid-19 outbreak. since then, we have seen china

[indiscernible] shery: let's get a quick check of the latest business flash headlines. apple and tesla both hit new intraday highs as their stocks took effect. apple announced a split at the end of july. tesla said on august 10 it was planning a division. both came in during training on monday. the analyst said it is a smart move and he expects other tech companies to do the same in the coming months. it has outperformed. amazon has taken a giant step towards remote delivery by

becoming one of a handful of u.s. companies certified to operate as a drone airline. the faa designated amazon prime air as an air carrier, allowing it to begin commercial deliveries under a trial program. amazon must clear regulatory and technical hurdles before packages can be routinely dropped at homes or businesses. american airlines is following united and delta by ditching a changingr fee for tickets and it is letting purchasers of its cheapest fares pay for upgrades. the drop change fee does not apply to basic economy tickets and covers domestic u.s. flights and those to canada, mexico, played a, and the caribbean. charges up to $750 for international destinations remain. operators in hong kong say it has received interest from investors, adding

there is a good chance it will obtain the funding it seeks by the middle of next year. the companye as reported a first-half net loss of 687 million u.s. dollars, up from $55 million a year ago. earlier this month, the company said it suspended all payments to creditors, blaming a virus triggered cash crunch. haidi: let's take a look at how we are faring this session. u.s. stocks again. the tech rally rumbling on things to the stock split for tesla and apple creating ever more exuberance in that sector. a much milder start to trading in asia. pretty mixed. you take a look at the nikkei 225, down by .2%. unimpressiveairly numbers as well as the labor market data. the jobless number as well as the job to applicant ratio suggesting the labor market conditions continue to deteriorate in japan, a result of the pandemic shutdowns when it comes to services and

sectors. the kospi seeing upside of .9%. we digest the gdp numbers. we are looking ahead to australia. the rba decision meeting. no change expected. certainly watching out for the impact on the aussie dollar 11 out of the last 12 meetings we have had, we have seen a rise in the currency, trading when it comes to aussie talks, down by .7% as we continue to see these chinands from the -australia tensions. an australian news journalist detained in beijing. in new zealand, downside, .7% as well in trading. coming up next, we will be updating you on the business sentiment in asia. the readings for manufacturing activity will be with us, getting that check as to how this pandemic recovery is faring across the region. this is bloomberg. ♪

karina: this is "daybreak asia." i am karina mitchell. south korea says it expects its debt ratio to reach a record after further increase in spending to support an economy reeling from the coronavirus. the government plans to boost fiscal expenditure by more than 8% to $470 billion in a draft budget that would push debt to 46% of gdp. korea's debt load was under 40% at the start of the year. damage from hurricane laura in the u.s., gulf coast, and caribbean, is expected to cost insurers $9 billion according to two risk modeling firms.

most of its damage was spread across louisiana. the storm surge was not as powerful as first feared. israel sees more than $6 billion in new trade as it moves towards normalizing relations with gulf states. talks are planned for later this week, following an initial accord with the uae and a first-ever direct flight between the two countries. a focus on economic matters with more difficult defense issues left until later. this week's talks will deal with tourism, trade, and finance. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. haidi. we had an update on business sentiment in asia. private-sector readings for the manufacturing activity for ihs market, indonesia, and taiwan, coming in at positive territory. others remaining in contractionary mode.

kathleen hays joins us now. dataf just the slew of that we get, what is standing out to you? looking at the top of my list, korea, we have a nice chart. perhaps we can bring that up to give you a sense of visually, as i talk about it, what the numbers are doing, because south korea's purchasing managers index has had quite an -- thisent coming in at is an outbreak chart. here, we will get this terminal chart in just a minute. in july..9 the low was 41 point three in may. let's say for south korea, a steady improvement, even though it is still in contractionary territory. we were just talking with guests about exports coming in worse than expected. gdp still negative. maybe there's some fund that is not as bad as it was. now, japan moving up to 47.2. that was stronger than forecast.

july, 45.2. good. is looking pretty 52 .2. july was 50.6. the low was 41.9 in may. here is that chart. yellow is the taiwan line. korea is white. vietnam is pulling back a bit. still contracting, but up from 32.7. that was below in april. you can kind of see a pattern here. in april and may is when countries bottomed out. there is some improvement. the philippines i have here, 47 point three, that is down from 48.4. anything, that was kind of a standout. remember when indonesia -- indonesia is the green line. 27.5 in april, back up to 46.9 in july. 50.8. we definitely got some

improvements being made. a mixed bag. a lot of it, people looking at china, looking at the fact that their purchasing managers came in on the official numbers yesterday. manufacturing pre-much steady. services looking strong. you have the pmi's in just about one hour or so from now, that will be in focus to see if they maintain the gains that china has made, and again, no matter who you look at, this has a lot to do with the virus, a lot to do with what has been happening there. but for every country, these are one of the first numbers they get that gives you a sense -- it may mainly be manufacturing. how the economy is doing, what businesses are doing, and again, as you said, a mixed bag, but at least we have got some pretty good improvement in some of the key countries. shery: one of those economies hit hard by the coronavirus pandemic, becoming a stone for

the virus, has been india. you see that reflected on the gdp numbers. wheneen: that's for sure you look at a decline of 23.9% year-over-year in the second quarter, that is the worst decline since 1996. the weakest member when records began. in fact, bluebird news team pointing out this is the worst slump -- bloomberg news team pointing out this is the worst slump. financial services, that's the biggest part of india's very important services sector, down 5.3% year-over-year. trade, downsport, nearly 50% year-over-year. manufacturing down 40% year-over-year. mining down 24%. construction down 50.3%. the loan gainer was -- lone gainer was agriculture. that is a very important part of india's economy so you have to be very happy to see that. interesting that the reserve bank of india has made an

announcement, making it clear, looking at the bond market, how they will make people market their bond holdings. their sovereign bond purchases and sales, etc.. they want to do an operation twist and this is making people more confident that there will be some relief in the move up in yields. 30 basis points in august for adia's key benchmark bond so note of maybe some optimism that even though the budget is constrained for india, that there's some things they can do in the bond market to get some relief to the economy. bloomberg'shays, policy editor, with all of the eco-numbers out of asia today. here in the u.s., efforts to reopen u.s. schools continue. this as the coronavirus infections across the country now top 6 million. we spoke to the vice dean of the johns hopkins school of public health for his thoughts on the safety of getting students back in the classroom. >> it has been pretty

remarkable. universities doing very different things. some all online, some, everybody back. also at the statistics. theppened to look at wonderful work, including johns hopkins data as well, and just a look at new york, and there's many other successful stories of declining cases, and certainly, deaths, remarkably diminished from where they were. why aren't we opening quicker if we see such good statistics and trends in statistics? >> in areas where the case numbers have come way down, it really is possible to open, but open with precautions. i think that is still the lesson from around the world. and i think people are in many cases kind of debating about the precautions about what is practical, but i think it should be possible.

and kids really do need to go back to school, the young kids. i think it's the right thing to came areas where cases down. there's a lot of the united states where that has not happened and reopening is not necessarily the easiest thing to do. >> certainly we see better statistics folks. the quietude of new york right now. the other idea i see is the effect of the pandemic as we go into the colder season. again, a chill across new york this weekend versus the 90 degrees we have been seeing. do you buy the weather dynamic that our listeners, our viewers, should be concerned of an october flu season overlaid on the pandemic? >> everyone is concerned because people will take a lot of precautions for themselves. that is what we need to be regardless to whether there is a weather dynamic. it's hard to say. it may be a little bit difficult. just like we saw, it's harder in the summer.

we had these huge outbreaks over the summer. i think what will matter a lot more is just how people behave so people are a little bit concerned about it. they might take more care. i think everybody will be better off and we may even see cases. thet's fascinating, difference between america and the debate here versus any other nation or culture. does america have the backbone ideas to the strict get us back to an economy while we wait this pandemic out, while we wait for vaccines? do we have the sense of rule and the will towards rules? >> i don't think we have had the leadership to do that, candidly. i recently wrote a piece and current affairs about this. hearnk that when people have very mixed messages -- we have been hearing mixed messages not just about the pandemic and whether it is over but about what to do to protect yourself,

like wearing a mask. and it is just really, really hard to get to that place where people are committed to doing what is necessary to protect, you know, to get the cases down and then have a much more stable economic recovery. joshua from johns hopkins, and the school of public health is supported by bloomberg. coming up next, our exclusive interview with the hkex chief executive, charles lee. we will be discussing the surge in health care related listings amid the pandemic. this is bloomberg. ♪

haidi: this is "daybreak asia," on bloomberg television. we are welcoming our listeners on bluebird radio as well. hong kong's stock exchange kicks off its flagship biotech summit. it is an virtual mode thanks to the coronavirus. health care related listings in hong kong have surged during the pandemic. the summit brings together industry leaders, global investors, and market the holders to discuss biotech development. we are joined for an exclusive interview by the executive, charles lee. wonderful to have you here on bloomberg tv and radio. it's particularly relevant now as we talk about the surge in

the interest in biotech given the pandemic recovery and the race for a vaccine and therapeutics for covid-19, but this focus on biotech began before this year. >> absolutely. we never knew covid-19 was going to be coming here. you know, this is just the right thing to do at the right time and it is such a big sector. with is such a big country a massive, aging population, huge health care challenges, and lagging drug development, so all of this requires, you know, asia to have a center for biotech so we can support research, we can reformsthe health care for china. that is a big event because china finally literally, for years ago, brought the entire

drug administration system into exactly the same -- fda. they call themselves the cfda. that reform brings china's standards of governing the drug administration pretty much the same with the u.s., so that reform set the foundation for us to be able to again take a huge reform in the biotech sector in terms of listings. they have no revenue before they can even sell anything. they were really heavily regulated. that previous history of being able to be regulated allowed them to be listed despite the fact that they do not have the traditional financials that typical companies we asked for before they can list here. it was a great event. it's a milestone. we never thought covid-19 was going to hit us. now looking back, i don't know how we could cope without this

news sector that is a long and so many companies are just enjoying the race, finding a vaccine, finding therapeutics, finding solutions. haidi: what is the edge hong kong? we know china has been deregulating to make it easier for some of these unicorn companies to list massively on the star board or -- domestically on the star board or the chinext as well. what is the center for hong kong -- factor for hong kong? charles: for the last seven out of the last 11 years, we are number one in terms of ipo's, so we are the ipo center around the globe. that's just the tradition. also, a drug development. in this space, it's very international.

amount ofa tremendous scientific collaboration between the u.s., china, and europe. the scientists are really all over the place. they are writing, publishing. significant have a international component to it, so hong kong provides that for great international connectivity. we cannot really handle this so we went through a massive reform to really allow all revenue. second phase of the clinical trial companies. china is following, trying to essentially do a similar review, similar reform, but i think at the end of the day, it's about scientists,about it's about working together. we provide that unique culmination. shery: they are not done yet, right? what will you see in terms of reform and what sort of tweaking and the rules could we see as you try to attract more listings? charles: i think in the broader

butrm, chapter 18(a), pre-revenue biotech chapter, it's part of a large, comprehensive reform of really changing the landscape and changing the composition of the market. a lot of reforms have to do with and many of the u.s. companies have unique corporate governance structures that don't necessarily fit in here. we can make it work for them to all come back. the most specific biotech, i think the bulk of what we needed to do is pretty much behind us. there are a lot of tweaks here and there. just to make the offering a little bit more, you know, easier. there are a few things we are working with for our regulators. our colleagues.

talking about fundamental change because the heavy lifting is behind us now. haidi: when can we see this week's? -- those tweaks? charles: they happen all the time. shortening the ipo cycle for example. now, we are trying to see whether we can bring it down. ruse.ertain .- certain rules biotech companies are supporters of a big research company. companiesmaceutical with an existing shareholder. we see promise of that research. when that happens, we have certain rules in the past that are really coming from a different age and a different problem. they sometimes create issues

about whether or not this company can continue to be -- continue to put money into the ipo, things like that nature. shery: exactly, and for those you have already seen secondary listings like alibaba, we have seen major investors take their new york shares and convert them to hong kong stock. do you expect to see more of those trends? charles: that's just natural because the liquidity and trading activity, what we usually call center of gravity might be inthat your own time zone. that's natural. there's more people naturally interested in you. many of your customers now want to be your shareholder. the trend is applying to every company. the trend is that it will be coming back. that is where they belong. the geopolitical

tensions affecting hong kong both domestic land from the u.s. side and the uncertainties, do you have to work a lot harder in terms of incentivizing and restructuring, so companies will be attracted to hong kong as a hub? charles: we did not really have to do anything in that way particularly. --say we are in difficulty we don't really have any of that. if you look at the ipo pipeline, if you look at the size of the ipo's that are coming, and you look at the performance of the understand, quite sometimes, you know, this is a very good problem to have. i have not really seen the impact. if you read the talk, you listened to commentators, all hell is about to break loose. having a great time. shery: great to have your insights, charles li.

chief executive of hkex. more from the summit ahead. we will speak with the pharma the sciencesceo of and technology parks corporation. they join us later. this is bloomberg. ♪ at how asiank stocks are trading at the moment. we are seeing them trade lower after the best august since 2003. the japanese nikkei is down .25%. of course, we did see the nikkei rising for the first time in four sessions. this of course as we had japan outperforming peers in asia, altered by berkshire hathaway spending. more than $6 billion buying stakes in five japanese trading companies. we have the cost beginning .9% after falling in the previous session. we had the second-quarter gdp numbers revised upwards.

contraction still of 3.2% quarter on quarter. when it comes to the asx 200, a loss of 1.8%. as you can see there. meete expecting the rba to with no change in policy expected. fiscal policy really taking the key role in reviving the economy. at the euro. it topped its average for the first time since when he 14 and has is an above the year-end forecast with asset managers the most bullish on record. this is bloomberg. ♪

>> a quick check of the latest business flash headlines with us and top chinese developed for -- developer ever brand -- through june compared ofh 117 billion at the end 2019. briggs data shows net debt swells to a record $92 billion on weekly cash. evergrande announced plans to cut debt in half and the next three years young china has launched its stock sale in hong kong as part of a global offering of almost 42 million new shares as well as a secondary listing. the stock will continue to trade in new york but will enter the

hong kong exchange under the code 9987 hong kong. it is seeking 2.5 billion u.s. dollars in the sale and the public offer price will not be more than 468 hong kong dollars piece. chinese tesla rifle -- boosted amid a frenzy for electric vehicles. the u.s. assisted shanghai at $17 a they planned to offer only 75 million earlier this year, new investment worth $1 billion from the chinese city of -- of the open in china, some stocks to watch. china's ag bank is in focus after they warned of slowing profit pressure in the second half. icbc cautioned that loan relief will add pressure on quality so watch out for that. pyd electronic on watch after

citi lifted its price target on the jump. petra china's h-shares were raised to neutral. ubs on is higher than forecast it ends. coming up, we will head back to the hkex biotech summit and speak to the president and ceo, plus we will track the china wealthth ubs global management head of global asset allocation. that is it from "daybreak asia." our market coverage continues as we look ahead to the start of trade in hong kong, shanghai, and shenzhen. standby for "bloomberg markets china open." this is bloomberg. ♪

>> is not :00 a.m. in beijing and shanghai. welcome to "bloomberg markets: china open." we are counting down to the open of trade in the chinese mainland and hong kong. our top stories today, china's relations with trading partners and neighbors. beijing detains an australian journalist, sparking tensions with canberra. troops clash