>> welcome to daybreak australia. we are counting down to asia's major market open. shery: the top stories this hour. u.s. stocks climbed toward a record as gdp and job numbers ease concerns about inflation. haidi: amazon sales fall short of expectations as the pandemic bump for online sales fade. shery: we tell investors keep

their distance in robinhood's trading debut. shares down 8% from the bottom of the marketed range. this is a picture across wall street. we are seeing downside pressure on u.s. futures, down 3/10 of 1%. this is after we saw stocks moving toward those record highs in the regular session my off session highs, but still holding two days of declines. financials and materials leading the gains. weak eco data. second quarter gdp coming in weaker than expected. softer jobless claims numbers. that pushing the dollar to a three week low. that actually helped crude see its best day in about a week in the u.s. session. right now it is extending losses . take a look at the after our action. amazon is also under pressure. -- the after hour action. they are also missing expectations by investors and analysts. after hours training is down 7%

at the moment. it was really about robinhood's ipo. what a shaky trading debut it was. in fact, the worst trading debut for a u.s. ipo of its size. we have seen that retail trading has diminished in the u.s. markets recently, shrinking to less than 20% of u.s. equity market volume in the second quarter, from 24% in the first quarter. that perhaps could have had something to do with it. haidi: it's kind of interesting, because they set aside such a significant portion for these retail loyalists, expecting them to flock to the platform in the way they flocked to the names trading on their platform. it was not to be found. when you look at wall street bets, a reddit platform we are familiar with now, there is almost anti-robinhood sentiment. a user saying does anyone else take pleasure watching robinhood

stock burned to the ground? if they were expecting loyalty, there was not a whole lot of that on the first day of trading. shery: we are also seeing pressure on amazon. shares falling after giving that lackluster sales forecast for the current period. reported revenue missed analyst expectations. emily chang joins us with the latest. what were the key takeaways? we did see gains when it came to cloud computing in other units. emily: the focus is on e-commerce, and will amazon have a year like they did last year when it was a lifeline for so many around the world and you could not go to stores in person and amazon was the only option? this is proving that this year will not be like last year. amazon may never have a year like last year again. we are seeing a stronger return to brick-and-mortar stores.

there was a more muted amazon prime day. the competition in the e-commerce landscape has never been more fierce. you are seeing other retailers step it up on delivery times. in some cases, anecdotally, i have seen amazon delivery times getting longer. i have seen things out of stock. there are also supply constraints the company is facing in getting users what they want. haidi: supply constraints. what about cost constraints as well? emily: amazon is in the middle of transition, too. jeff bezos has moved into the executive chair role. they have dave clark focusing on logistics. there are continuing labor concerns. with the delta variant constantly evolving, that is something amazon is thinking about. we spoke to an analyst on our show who worked at amazon for

many years herself. she said the ceo is focusing on profit more than jeff bezos was. she is expecting profit to get better where we will see sales and revenue slowing down. that is how they ran aws. it is an increasingly bigger piece of the pie. perhaps we will see a different kind of balance sheet with jassy at the helm. haidi: how is amazon right now investing for its future? emily: the company is continuing to invest in aws, even though jassy is not the ceo anymore. they brought in another guy who was at aws before. he's now back running aws. they will continue trying to grow that business. the cloud business is only getting bigger. amazon will only have a bigger piece of the pie. the competitors are microsoft and google.

in a way, it is not a zero-sum game. the opportunity is only getting bigger. we are seeing amazon design its own chips, which will certainly impact their margins as well. on the e-commerce side, we should expect them to continue to invest in logistics, to focus on artificial intelligence technology that can perhaps take workers out of those warehouses. it's always going to be a race on delivery times. that is how amazon will win. and perhaps building out their prime offerings to make prime membership more valuable. haidi: emily chang with the latest on amazon numbers. let's look at how the asian market session is shaping up going into the final friday session of the week. new zealand stocks up 0.1%. sydney futures showing a modest upside. we are broadly expecting asian markets to trade more shakily

today. equity futures sitting in the red, including chicago and nikkei futures. let's get to vonnie quinn with the first word headlines. vonnie: good morning. president biden is tightening up on federal employees, requiring all workers to prove they have been vaccinated against covid-19 or wear a mask and take frequent coronavirus tests. the plan affects millions of federal workers. biden has also encouraged private sector employers to follow the same approach. the move comes in response to vaccine holdouts. the white house wants carmakers to pledge that at least 40% of the vehicles they sell in the u.s. will be electric by the end of the decade. a spokesperson for the united auto workers union says discussions are ongoing about a target, but no agreement has been reached. automakers say they need support from the government to meet any goals.

the international space station got an unexpected jolt from a newly arrived russian module. it happened when the russian craft thrusters turned on and expectedly after docking. iss flight controllers say the space station suffered no damage. however, nasa postponed friday's launch of boeing's starliner capsule as a result. global news 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: still ahead, an exclusive interview with the former federal reserve bank of philadelphia president and ceo. we discussed the wrist of high inflation -- risk of high inflation becoming more persistence. next, we talk about the china risk increasing for global investors. this is bloomberg. ♪

shery: we saw chinese abr's resuming their declines. it was a bit of a mixed picture when it came to those big tech companies. jd.com was up. bucking the broader trend, db global up more than 11%. it was up more than 40% at one point after those reports it may be considering coping private. -- going private. it pared back those gains after the company refuted those reports. take a look at education stocks. that dip buying faded in today's session. losing ground by at least 6% after t hose two days of outsized gains that we saw in these education stocks that were hit hard with the overall in china of the sector. haidi: so much uncertainty over what the next direction is for the chinese listed adr's in the

u.s.. let's get some more from komal sri-kumar, the president of sri-kumar global strategies. you talk about china risk being an issue when it comes to the clients you speak to. is it the regulatory crackdown, or is it the buildup of systemic risk from debt? komal: i hold three separate factors in referring to china risk. the first part is the debt position you talked about, namely that the debt to gdp ratio, including the unregulated sector, is probably well over 300% of gdp. that is on the high side. it essentially says that when the jet to gdp rises to the -- debt to gdp rises to that higher level, it increases their risk. the second risk coming from china is the crackdown we have seen recently. in some sense, you can

understand the crackdown on tech because it has been competing with the overall government authority in terms of global dominance by the chinese administration, who would like to show that the government is dominant over any firm in the private sector. what i was surprised by was the fact that the tutoring area also came under attack. then it became clear that the reason was the tutoring is done for students to get into better places, better universities, and therefore the class consciousness is a matter of concern for the administration. the third area is the growing u.s.-china relationship discord. as far as trump was concerned, the chinese probably found it easier to deal with him as president. he was more like a lone person

attacking the chinese positions in public. president biden is more difficult to deal with because he is getting together other like-minded powers, japan and india for instance, in forming a group against china. i think the chinese authorities should be more worried about the opposition today than under the trump administration. all of these essentially main that china -- means that china, the overall sovereign risk has increased. haidi: when you look at quorum, if it becomes a fallen angel, how much systemic risk is there across the rest of the debt market? komal: if it does fall, you are seeing the problems that debt is

creating at a discount. a special dividend was canceled this week, which shocked the market. credit agencies are watching for it very carefully. a company of that magnitude and that importance to the property sector could have a big effect on the rest of the chinese market. and again, could have reverberations overall on the global side. so far, expectation is the chinese government will back them up and the debtholders, at least the senior holders, will be made whole. if that doesn't happen, then you have the risk that the government has to decide which ones to save and which ones not to save. you run what i call the lehman brothers risk of 2008. if you think a firm is not of strategic importance, you let it

go down, and suddenly you find it has a global impact. that is the unknown unknown we are dealing with. shery: let me ask about the backing up part of things, given that we just had the fomc weaker than expected second-quarter gdp numbers today. what will it take for the fed to move? will they have to back up the stock market just because they don't want to see a repeat of what happened during the taper tantrum? komal: i think the fed is a lot more boxed in than they were in 2013, when the last taper tantrum took place. the difference today is that the fed balance sheet is much larger. it has doubled since the beginning of 2020. we are at over a trillion dollars for the fed's balance sheet. -- $8 billion dollars for the fed's balance sheet.

ideally for chairman powell, he would wish he would never have to change policy. that is the issue. there is a hint here that they were just talking -- a hint here that they were just talking about taper. what does it mean to be just doing that when cpi inflation is going on at levels not seen in decades, and a talk has just begun about taper? my concern is if they begin the taper only at year end, for example, and if the communication is not well done -- and this fed is not known for good communication -- then you have the risk of a serious market meltdown sometime in early 2021 or after the tapering begins or is announced. haidi: always great to have you with us, komal sri-kumar.

a big day for robinhood. the disruptive trading app's sharess sli -- shares slip below the market price, ending the day down. let's get more from our deals reporter. this was disappointing and also quite embarrassing given expectations of a rally from their retail supporters ahead of this. >> it definitely was not a good first day. it went down, which usually does not happen on ipo's. if anything, bankers try to have it go up to reward people for taking a risk and buying a stock that has not been on the stock market before. that did not go as planned. as it was, they priced at the bottom of their proposed range. also a sign of weak demand from the roadshow. disappointing, sure.

still valued around $30 billion, though. that is substantially up from where private investors -- officially there is mixed sentiment. on the one hand, you have investors that are venture capitalists that invested when it was just pennies a share. you have some venture firms that have stakes worth $3 billion. you have the founders that are now billionaires. of course you have new investors, some of them are saying they have concerns about robinhood. there has been a lot of regulatory scrutiny with robinhood, some questions about the way in which they make money. some people feel that even though robinhood has had strong user growth and revenue growth, that due to increased competition and increased regulatory concerns, that may be

robinhood won't continue its momentum. haidi: and record fines from the watchdog playing into that narrative. how much of it is a pullback in enthusiasm in overall ipo's? we have seen a bunch of postponements this week. katie: that could be part of it as well. robinhood did not go through a spac, but one thing you have seen with a lot of tech companies going public through spac's is many have not traded will. there could be a dampening enthusiasm for public stocks in general for people who may have been burned. people may have already spent a lot of money investing in other public companies that went public in the last year because there are so many at this point. not sure how much people are excited to take more risks on new ipo's. haidi: our bloomberg deals reporter with the latest on

robinhood. still to come, nikola sees it biggest single day drop in six months after its founder was charged with misleading statements. we have the latest. this is bloomberg. ♪

shery: here is a quick check of the latest business headlines. amazon's forecasts for the current period fell short of expectations, suggesting its rapid growth through the pandemic is waning. it is projecting revenue up to $112 billion. shares fell and extended trade as investors focused on its slowing e-commerce business destroy strong performances by the advertising -- despite strong performances by the advertising unit. apple increasingly looks to return cash to its shareholders. sources tell us the longest

portion, a 40 year security, will yield 0.92% above treasury. the proceeds could be put toward self-buyback dividends or acquisitions. blackwood oh start scarlett johansson is suing disney for streaming the film online. in court filings, she claims disney tried to draw viewers away from theaters, reducing her share of box office receipts. she said disney promised the film would have an exclusive theater release for at least 90 days. disney says it fully complied with johansson's contract. haidi: nikola's shares dropping after federal prosecutors charged the ev startup's founder for lying to support the stock.

ed ludlow has the details. what are the accusations he is facing? ed: essentially that he lied to investors about the company's technology, its progress, and he knowingly did so in efforts to support the share price. examples being that he said the company was producing hydrogen at a significantly lower cost than market, when in fact the company was not producing any hydrogen at any cost. their examples about exaggeration with technology, and there is a lot of detail in the filing. shery: the indictment mentions your report from last summer. what did it say? ed: we reported in june that trevor milton went on stage in 2016 with a truck behind him, saying it was fully functioning. but according to our sources, that truck did not work. it did not even have the parts in it that would make it capable of operating. the indictment says that report was completely correct, the

bloomberg news report was accurate. and after the fact, trevor milton took to twitter to basically deny the allegations in that story. he then, according to the indictment, texted a board member, saying his tweets supported the share price. that is another tie-in with the concern the doj had. haidi: what happens next? ed: he has been released on bail, having pleaded not guilty. the terms of the battle confine him to the state of-- bail confine him to the state of utah. it will go to trial. it is not a huge surprise he pleaded not guilty based on his time as ceo, his social media posts, the combative nature he went after people that criticized the company. shery: could this have any broader implications for the industry? ed: nikola was kind of seen as

this front runner in fuel-cell technology. fuel cells use hydrogen to power an electric vehicle system, rather than a pure battery. they have not made any progress. they were also the poster child for spac's. their market cap was more than ford's at one point, $29 billion. they made little progress on their technology. they are still pre-revenue. they are still in prototype phase. investors have to think again about how they treat these companies that have chosen to go public via spac with promises about new vehicle technology. shery: coming up, we speak to the former federal reserve bank of philadelphia president and ceo charles plosser about why he thinks the fed is in a pickle. that exclusive interview just ahead. this is bloomberg. ♪

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vonnie: "daybreak australia "daybreak australia. you are watching" -- you are watching "daybreak australia." the biden administration providing a one hundred dollar incentive for people who get vaccinated. the president asked states to provide the funds for the american rescue plan. some say some cities have already announced incentives as a way to boost sagging inoculation rates. israel will offer a poster shot to people over 60 who have already been fully vaccinated

and that makes israel the first country to offer its third dose of the fines are biontech vaccine to its citizens on a wide scale. the decision comes at a time when infections are rising. neither the u.s. nor the european union have approved booster shots. it is not proven if the third dose helps, who needs it, and when. china put forward an alternative proposal into its investigation into the origins of the coronavirus. it will span multiple countries. beijing's latest move counters the u.s.'s push to -- many countries are opposed to the w.h.o.'s plan. at the tokyo olympics, an american gymnast won the all-around title. the victory came one day after her teammate, simone biles, withdrew from the competition. lee is 18 years old.

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 vonnie quinn. this is bloomberg. shery: u.s. consumer spending has surged at the second highest rate in nearly 70 years but that did not prevent second-quarter headline gdp numbers falling short of estimates. kathleen hays joins us now. the u.s. economic recovery is still going strong. kathleen: you will be seeing peak growth and all of that. people saw a couple things that were very important. one is consumer spending. up 11.8% annual rate, the second fastest pace since 1952. we had the big rebound last year and that was stronger but this is still going very strong so why did the headline fall short?

inventories. they were down 1.1 percent. if inventories are lower, it attracts gdp. why didn't companies build inventory? because of supply constraints. they did not get the stuff to build the inventory. one more thing is inflation. the core pce price, the main inflation gauge, was up 6.1%. that is the biggest gain since 1983 so that is the story. inflation is another important indicator and that is why i want to look at this with a very special guest who does not think the recent acceleration in inflation will be temporary. charles plosser is the former federal reserve bank president and it's great to see you again. particularly on the day after jay powell makes it clear they will go slow. they are not worried about inflation becoming permanent. he made an interesting argument about drawing parallels between

1918 and 2021 where you think we could be setting up for another one. in the 1970's, it was about the fed accommodating the vietnam war providing stimulus and then there was the oil price embargo. explain how this would work. charles: thank you. it is strikingly similar. in the late 1960's in the early 1970's, lyndon johnson had the great society programs and the vietnam war and he presumably, allegedly invited the chairman of the federal reserve board at the time to his ranch in dallas and literally told him that he would continue to print money and keep interest rates low in order to fund the great society. nixon did not want the damage

done to the economy, did not want to risk unemployment, and he told arthur burns that he would keep interest rates low, not to raise rates, and helped soften the unemployment below. if you think about it today, that is actually what we are doing. we are having huge spending programs, great demand for the fed to support spending efforts, and we have what looks like a supply shock that you are talking about. our constraining output in causing dislocations and other things just like an oil embargo did. what the fed did was accommodate those oil price shocks and turned what would have been a temporary shock from oil prices and inflation to one that was more lasting and permanent and i think that the question that we have to face today is to quit

talking about permanent versus temporary. what will decide whether or not the price increases we are seeing now will persist or not, maybe they will go down a little bit, persist above 2% or 3%, will be what policy does. it is policy that matters going forward, not what -- it is not what the bottleneck is. kathleen: monetary policy can fuel inflation. the fed adopted this new framework after 10 years, coming out of the financial crisis when there was lot of stimulus. the key rate near zero and they could not get inflation higher. why would that be different now? why should the fed take a second look at that framework? charles: that framework had never been tried before. the new framework is brand-new. it has never been tried before. the difference is, first of all,

we have a lot more stimulus than we had after the great financial crisis. two things are apparent -- three things, i guess. one is a lot more government spending, a lot more government debt, a lot bigger deficits, huge amounts -- trillions of dollars of spending by the government. the fed increased its balance sheet in a little over a year. what it did after the great financial crisis in four years or five years, actually, so the third thing that is really important is, yes, there is part of me that is an old monitor. one thing that did not happen after the great financial crisis was the money supply did not grow so now, what has happened is that money growth has exploded at a rate that is the fastest we have seen since world war ii.

so the circumstances are different. shery: given what you are telling us, with the fed starting to taper sooner rather than later, would that be a sufficient step? charles: that remains to be seen. it would be a good step for them to take, the first step that they take. whether that will be sufficient, i don't know that i have a good answer for that at this point. it will depend. again, they need to signal their seriousness about not converting these temporary shocks into more persistent shocks of inflation and they are going to have to respond with policy actions. the first step would be tapering and beginning to stop this extraordinary volume of assets that they are purchasing. they purchased roughly 60% of all the debt the u.s. government issued since the beginning of

the pandemic crisis. shery: what is the risk of waiting at this point and are you talking about going back to the 1970's and what happened or could it be even worse? charles: there could be two or three ways that can play out. the fed could get very lucky. i think that is a possibility but not a very large possibility. the second possibility is that the fed wakes up and decides it has to do something about this, and it will gradually begin to taper and tighten policy. the third option is they wait and they wait and they wait and they wait until there is no denying that this inflation is not going away anytime soon, and then they have to react, and then by then, expectations will have shifted up and the actions that the fed has to take in terms of raising interest rates or stopping bond buying or

however you want to think about it will disrupt the markets and lead to a very bumpy if not recessionary period as the fed tries to take control of inflation again and that is the risk they are taking. will that come to pass? who knows. but that is the risk. kathleen: in terms of the pressure that they are going to see, they are starting to get pressures from the public. a lot of regular people are talking about the higher prices of used cars and food and all kinds of things. it is not in the u.s. yet, but in germany today, after their consumer price index hit a 13 year high, a leading service sector union immediately called for strong wage increases. is the fed going to see more of that? charles: they very well might but they are going to push back on the others if inflation

does not receive very quickly from others because the fed has made a promise that it would not raise rates until they met their inclusive full employment objectives, whatever that means. and if they start to talk about raising rates and tightening policy and they have not reached somebody's definition of maximum inclusive employment, they won't get pushed back politically against tightening policy. and that should be a real political problem for that i think but they set themselves up for that problem by mentioning that promise to not raise rates and set up full employment. that was a mistake i think on the fed's part. it was unwise. now, they have either got to do something about inflation and walk back there promise not to raise rates until full

employment or walk back inflation. it is a lose-lose. kathleen: is this all about jobs, strong employment reports? that is the way they can start backing away from this quicker? charles: i think that is what they will try to do. they will try to talk up the strength of the employment report and how close they are to maximum employment so that they have leeway but they talk themselves into this corner and they will try and talk themselves out. shery: our thanks to charles plosser. it was great having you on. thank you very much and our thanks to kathleen hays. you have some breaking news for us in australia. haidi: we are hearing the national australian bank is set to buy back their own shares.

-- under that buyback scheme will depend on market conditions. the share price and other considerations according to a statement we have just gotten. this after anz was the first to kick off the sector's wave of billions of dollars expected in capital returns to investors. they announced they buyback of $1.5 billion earlier in the month. we had been expecting cba's to be announcing that no doubt, that will not be the last. taking a look ae rest of the day ahead in australia and energy minister -- signed a letter of intent with u.k. counterparts. the plan is to partner on energysolutions like clean hydrogen. we will be watching mining stocks at the open. credit suisse cutting to neutral. see lsa -- clsa has a rating on rio tinto as well. we will be hearing initial interest. it is said to be coming from a

waste management company. much more ahead on "daybreak australia." this is bloomberg. ♪

shery: take a look at emerging-market currencies because we are seeing the support right there and emerging-market currencies at the highest level since november. it is the best day and we are seeing some support ahead of going into august which is

historically a very bad month and it comes to high-yielding current. this as we have the u.s. dollar at a three week low. right now, we are seeing a little bit of pressure for the turkish lira and the south african rand but this only as the turkish lira is trading at around the highest level since mid june. we have the central bank really upgrading that inflation forecast and the south african rand curbing the longest winning streak since mid may or so. we have seen the riskiest assets getting abused given the fed's dovish statement earlier this week but really, it's about currency strength when it comes to emerging markets. take a look at the morning calls for today. start with a call from westpac because that suggests more support for em currencies. in the near term, they noted that the dollar will remain we cash -- weak-ish in the wake of the meeting. it pointed to a stronger greenback come september.

haidi: as we spoke about, australia saying it has to buyback almost $2 billion of its ordinary shares to move its capital measures toward the required range. mets get more now from nobel ahmed -- let's get more now from nabila ahmed. we will probably expect something from cba as well. nabila: this is the payday that shareholders have been waiting for them for more than a year now. last year, regulators capped buybacks and dividends because of the plandemic and because we were not sure what the economic impact will be but we know that australian banks together have $30 billion in surplus capital and shareholders are expecting that to trickle through to them. they announced their buyback program a few weeks ago. cba and westpac will expect to be next. the ceo in may talked about the strength of the australian

economic recovery from the pandemic and that is what this payout is about. shery: we have nomura's first-quarter earnings. what are the expectations? nabila: it is expected to have a loss related to archegos. the japanese bank could returned to profit this quarter despite that. that will be because of the strength of its retail business so japanese and u.s. equity markets have done really well this quarter. it's asset management expected to be steady and the cost base is relatively low and stable as well. they fall in seven spots in m&a global league tables since this time last year. shery: nebula ahmed. -- nabila ahmed.

aftershocks from archegos are rippling through the business. profits plunging on a slump in trading that was exacerbated by a $653 million loss related to the implosion of the u.s. family office. the ceo, thomas, now promising no more archegos tide bearers. >> we are absolutely doing this strategic review together with the board of directors and the executive board, having very constructive discussions. we want to take our time to do that because this is not something that we want to do in a rush. we have a clear intention to formalize a long-term vision for the bank and concrete midterm plan and this is what we are doing now together with the board of directors. we are looking obviously at all of the options but we have some very clear views for where we are going but as you can

imagine, we will not now start to disclose part of that strategy. we will communicate it when we are ready to do so. >> we should still consider investment banking as quarter credit suisse, should we -- core to credit suisse, should we? thomas: we have been investing as you can see in the numbers, in terms of technology, and people. investment banking has been and is absolutely core to our business and we are investing in it. we are spending a lot of time with clients. we have a strategy where we bring our wealth management capabilities together with our investment in getting capabilities. available to clients. >> what can you tell us about

the response to the risk review you also published this morning, thomas? it says the risk control architecture was not lacking but there was a failure to discharge duties and prioritize risk mitigation. what is left to do in shoring up credits for use to make sure risk minute -- credit suisse to make sure risk management is robust? thomas: we are taking this event very seriously. we lost with one client 5 billion swiss francs. that is why we decided to publish the full report. it is over 100 60 pages. it goes into a lot of details about some of the failures but also recommendations. the failures are centering around a lack of effective risk management in prime services both in the first and second line of defense. a lack of oversight and risk management. a lack of escalation and a lack of prioritization of certain risk mitigating steps which have

been discussed by some of the teams like moving clients like archegos to that. because we are taking this seriously, we have decided to publish the full report and now we are focused to take the right lessons learned away from this, the right read across, and we are doing the global risk review across the bank. we will make sure anything like that will never happen again. haidi: that was thomas gottstein , discussing the bank's strategic review with anna edwards. be sure to tune into bloomberg radio. you can hear more from the day's newsmakers, get in-depth analysis from the daybreak team. we are broadcasting live from our studio in hong kong. listen via the app, radio plus, or bloombergradio.com. lots more ahead. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. didi denied a report that it is planning to go public. it jumped as high as 49% after the wall street journal said it would delist. those gains were than parrot after didi issued a denial. the founder and chairman of

nikola has been freed after pleading not guilty to charges of making false statements to investors. prosecutors say he lied about almost every aspect of the electric car making business in an effort to drive up the stock. the 39-year-old became a billionaire after nikola went public in a spac deal last year before resigning. -- named new top management as the company looks to boost growth after a 1.3 $6 billion bailout. the board of the chinese retailer announced a new chairman and president as the state backed rescue meant that the billionaire will no longer be in control. shery: another ongoing story we are watching, the tokyo olympics, especially when it comes to the medal count. bloomberg does have the tracker of the medal count. china and japan leading the gold-medal hall. -- haul. this coming out a time when we

continue to see rising infections among at its as well. a u.s. pull vaulter, the latest want to be out of the games after testing positive. more than 190 athletes have already tested positive. haidi: so disappointing for these athletes to go through everything they have gone through and then get to tokyo and then to contract covid. just really devastating. we are still seeing what a third day of record daily cases for the tokyo area, almost 4000 cases. national daily infections expected to top 10,000 so this is why we are also hearing that that state of emergency for that area is likely to be extended past the end of the olympics, the end of august. we are still waiting for confirmation on that. shery: it does not help the games. there is so much heat, sweltering heat and japan. we have heard about people and athletes fainting as they are carrying out those games. we will keep you updated on everything on the olympics and

of course the markets. "daybreak australia" is done but "daybreak asia" is next. this is bloomberg. ♪

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shery: from bloomberg's world headquarters in new york, i am shery ahn. we are counting down to asia's major market opens. haidi: welcome to "daybreak asia ." asian stocks facing a muted start as traders weigh earnings. u.s. economic data and the risks stemming from china's corporate crackdown. amazon sales fall short on the