haidi: a very good morning. we're counting down to asia's major market open. shery: china security regulator calls for talks with the sec after a week saw beijing's crackdown trigger a near trillion dollar selloff. haidi: square is set to buy --

shery: the u.s. infrastructure deal is almost done, with agreement on -- this is a picture across wall street. u.s. futures gaining ground after the s&p 500 posted a weekly decline. we have seen that pressure coming from the chinese regulatory crack down. we managed to see the china index hold onto gains this of course after a fifth consecutive week of declines. we also have the dollar index rising and gaining ground. under a little bit of pressure. putting pressure on wti as well. down .2%. after four months of gains as well. for crude as we continue to see more hopes about a demand recovery. of course it was really about what will happen in the e-commerce sector, especially as we go to the open on monday we will be watching e-commerce companies took a hit. this chart showing you how

amazon lost ground when it came to those pressures on earnings revisions and also as we continue to see the debt ceiling reinstated on sunday which is what we are watching today. we have seen the debt ceiling being raised. the deadline is still october so we will be watching that closely. it continues to be a marketeer a tent and we are approaching the $28 trillion ceiling. but it is really all about the performance between asia and when it comes to the performance in the u.s. or globally, because we have seen that underperformance continue and when it comes to the msci asia-pacific stock market, really the underperformance, the biggest gap since 2002. haidi: yeah. we have seen the msci asia-pacific index trailing the s&p 500 by almost eight percentage points in july, on

course for the biggest relative underperformance since 2002. it is china's corporate crackdown that we have seen, just wipe out so much value of chinese stocks and hong kong stocks. also the relative slow pace of vaccination as well as the impacts of the delta variant taking place, taking hold across many economies in this part of the world. let's look at how we see asian markets shaping up. we saw the risk-off tone in the u.s. up by about a quarter of 1%. a little upside when it comes to sydney futures. this, as we continue to see speculation that they may be forced to do a u-turn when it comes to their taper tightening plans and new target bids as we have's land going into lockdown. sydney and that extended lockdown. and the delta variant continuing

to cause a lot of worries for policymakers. chicago and nikkei futures upside by about .3%. shery: it is all to do with china. the weighting of china and it to broader emerging markets really hitting broader global stocks and equity levels we have seen so far. we have seen china you -- lose $1 trillion. started with a crash in u.s. listed education firms after regulators announced a sweeping overhaul. tuesday saw tencent saying it is stop accepting new users for wechat, and the index of u.s. listed firms loosed -- lost 1/5 of their assets. wednesday sought chinese security regulator call on investment next to shore up confidence, but the resulting calm was short-lived. the week wrapped up with a meeting pledging improvements in the system for improving overseas listings.

this is causing some soul-searching. the air of uncertainty is still very thick at the start of the week is the sec blocked chinese ipo's. china security regulator is seeking to find a suitable resolution. let's get more from new geon. what has been chinese regulator's response this weekend to the decision? >> over the weekend the chinese security regulator commission said as the two country's capital markets are increasingly connected, strengthening regulatory collaboration between the two countries will be a natural result. then they said they are seeking to have more communication with the u.s. regulator about chinese companies that are listed in the u.s.

the regulator also called for more mutual respect and collaboration on the issue. shery: what is beijing's latest message when it comes to chinese tech companies and overseas ipo's? yueqi: internally, they have summoned a meeting with large tech companies friday and basically reiterated the warnings they already put out earlier of data security. they were also reaffirming they would have tighter oversight over resize share listings in the u.s. and also accused ride-hailing companies of uncompetitive behavior. haidi: bloomberg's yueqi yang there with the latest. kim, the visibility you have at this point, doesn't make you think some of the regulatory stress and volatility is

starting to become clear in terms of ultimately where do we end up with this? kim: sure. i think it's beginning to become clear, but i do not know if it is investable. that is kind of the headline. so, it looks like not only the eu and the u.s., but china is also starting to crack down on its large companies. and it seems like if you are an internet-based company, there are a lot of the same issues that we have here, although china has an extra one with foreign investors. and how that is carried out. but these companies are a target. i think investors outside of china have thought they were not a target and that they could just kind of play in this market and ignore what was happening in the rest of the world.

haidi: for a while though you were an extreme minority in terms of not wanting to have any of these stocks. is this validation? kim: it is. i'm not going to do a victory lap yet, but i am a simple investor. and i mean that in the best way. i try to keep things as simple as i can. what i really want to do our find companies that are owned by shareholders, which if you are owning a company through a vie, a variable interest entity, i stayed away from those stocks. and i like to know what the accounting rules are. i know what they are in the united states but i do not understand them and many other parts of the world. so i tried to invest in those areas through companies that are domiciled in the u.s. so i have avoided it. and some of my returns kind of reflect that, because who didn't

want to own alibaba at one point or jd? these are huge growing international stocks. but me, i did not want to do it. shery: if you are seeing that pressure on those international stocks domiciled in china, operated by chinese leaders that are now getting pressured, does that mean people will invest in u.s. tech instead? does that give them a leg up? kim: i don't know. i think some of the people that are investing in this area, especially retail investors, are going to want to buy the dip. and i do not think that is smart because we are talking about the changing regulatory environment, and that is kind of foolish. i do think that investors love growth. they are going to go after growth, they beat in the u.s., but they are also ranking some unit firms that come public in

other areas of the world like the eu. shery: kim forrest, stick around because we will be back with you. in the meantime, let's get over to vonnie quinn with the first word headlines. vonnie: the u.s. is blaming iran for an attack on an israeli oil tanker. secretary of state antony blinken says there is no justification for the assault, and warned of an appropriate response to come. his condemnation came after israel's prime minister and the u.k. blamed iran. iran denied responsibility. meanwhile, anthony fauci, the u.s.'s top infectious disease doctor, says covid-19 vaccines work extremely well, and a return to the lockdowns of 2020 is unlikely despite outbreaks among fully vaccinated people. he said the likelihood of

contracting a severe case is very low. beijing will step up efforts to hold -- halt the spread of covid-19. a post on the city's wechat account announced to the move. they had two local cases on sunday. in eastern china, they suspended all flights in and out of the airport after a rise in delta infections. wildfires in turkey are forcing evacuations as firefighters worked to contain more than 100. cities including istanbul barred visitors from visiting the forests and parks due to the fires, which have claimed at least eight lives. parts of italy and greece are also affected. 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'm vonnie quinn. this is bloomberg. shery: still ahead, sydney

matches its highest cobra case counts ever as brisbane goes into lockdown. leslie russell tells us where she thinks things go from here. next, president biden's infrastructure deal is done. details i had. this is bloomberg. ♪ this is bloomberg. ♪

>> i was very optimistic the fall would be a very strong labor market, but many americans coming back to work. that's still my base case an area. but if people are nervous about the delta variant, that could slow some labor market recovery, and therefore be a drag on our economic recovery. shery: minneapolis fed president warning the spread of the delta variant could keep some americans from looking for work. in the meantime, a bipartisan

senate has ramped up negotiations with a $550 billion infrastructure package they hope to put to a vote and pass this week. kathleen hays joins us now with more on this. we are talking about a 2701 page bill. what's in it? kathleen: one, it's a bipartisan bill. several weeks ago, joe manchin from virginia on the one hand, mitt romney republican on the other hand, they said we can hammer out a classic, traditional infrastructure bill, and that is what they have done. chuck schumer, who is the head of the committee that is going to have to see this vote through ahead of this group, says it is a matter of days before gets past. romney says he sees no disagreements, so he is optimistic. here is what is in the bill.

roads and bridges is the traditional part. $110 billion. electric grid upgrades, $73 billion. rail and amtrak, really important if you want to move people fast, $6 billion. broadband expansion, one of the leading economies in the world should have more broadband. drinking water and transit, they are all getting plenty of money. going back to joe manchin, he was on face the nation, he was on cnn today. he said that he sees the vote perhaps today, sunday night. the amendments starting on monday. he sees a vote by thursday. and he is confident it will pass. here is what he said. >> i think by this evening hopefully we can start the process, hopefully start the amendment process by tomorrow. >> you think it will pass? >> i do. absolutely. let me tell you, when you see chuck schumer and see mitch mcconnell both voting for the same thing, it is unbelievable.

kathleen: it is one thing to get this through the senate. if the senate passes it this week, the house is on recess. there are plenty of voices in the house of representatives, especially on the progressive democrat side, saying we are going to look at the senate budget process and do a reconciliation bill that links the passage of this infrastructure bill to the president's social spending bill. that will be a tough want to get by republicans. that is what happens next. haidi: the issue of what happens to the u.s. debt ceiling among back to the front burner. it is a much bigger deficit in place now? kathleen: i think a lot of us have forgotten in august of 2019, the debt ceiling was suspended for two years. nobody realized the u.s. would be hit by this pandemic, but was probably a good thing. so much had to be done then. but now it comes back as of today. now the debt limit stands at $28.5 trillion.

so what are you going to do? tax people more? spend less? less spending doesn't seem possible. there are a lot of questions on the table. a quote from our bloomberg news team in washington, this is the day the clock starts ticking. he said it is likely beginning of the 200 meter dash when the gun fires and everybody has to start running. there could be a default, or a default as early as october. you know what is going to happen. they are going to come up with something at the last minute, and the markets will move around for a while, but they will get something done. but again, it is on the table. shery: kathleen hays with the latest when it comes to the debt ceiling. much more. still with us is kim forrest. let me explain this chart one more time, because i don't think i got it right the last time. this is the u.s. debt ceiling

again becoming operative sunday. in 2019, that debt limit was at $22 trillion. it will now adjust to the current level of debt which is $28.5 trillion. as kathleen was saying, it happens all the time. we're not really anticipating a federal government default, but how big of an irritant could it be for markets? kim: if we look in the past 15 years this has been a bar under everybody's settle. markets and congress. we have had a couple shutdowns of the government. actually, i think it is longer than that. i think that was in 2008, something like that, when the first one happened. so, this is something we can go nuclear on, but we never seem to default. so i do not think that is on the table, but that is a political football. just what we needed, one more thing to argue about.

shery: in the meantime as we continue to see the political football and another package and not to mention we already had fiscal stimulus during the pandemic still filtering through the economy, how concerned are you that inflation might not just be transitory, that it could become more permanent? kim: well, i try to solve that puzzle by watching wages. the wages i have seen the past couple years, the absolute lowest rung of the wage ladder is around my area, about $12.50 for a traditional stocking job. that has jumped to $15.50 during the pandemic. thta's -- that's a huge increase. so i watched that very closely. if we see another bump like that, that's when i started getting really worried about

inflation. but at this point i think that bump was kind of driven by covid and trying to get people to come to work at these jobs. but also, it's going to get passed through, but it's not that big a jump it will impact the whole employment jobs salary change. but i think that is where we need to watch most, as opposed to things like oil, lumber, even groceries. haidi: are you worried about inflation, as the impacts of the delta variant, the mask mandate, one steps forward, two steps back we have with the virus and how that impacts the consumer's psyche? kim: i am. i think that they have done a very effective job of highlighting delta and trying to get people vaccinated.

i also think it is serving to calm down the travel and tourism and restaurants mostly. so let's see what happens here. that area it was probably going to calm down anyhow, especially travel as kids go back to school in september mostly. again, i am watching it, but i am not terribly worried that that will slow our rebounding economy. haidi: kim forrest, always great to have you with us. lots more to come. this is bloomberg. ♪ is bloomberg. ♪

haidi: let's get you the details on a big deal in australia. a transaction worth about $29 billion. let's get the details from paul allen. what do we know? paul: values after pay at about

$29 billion. currently trades are just over $96 per share. this deal would value the company around $126 per share, a pretty healthy premium. after pay seeing some staggering growth in 2021. sales up almost 102% in the past 12 months. shares up about 45% as well. the afterpay founders saying by combining with square we can further accelerate our growth in the u.s. and globally. also gives them a chance to expand into consumer lending, something they do not currently offer. shery: any idea on the timeline of this deal? what happens next? paul: it is expected to close in the first quarter of 2022. we are going to learn more in about 10 hours when square will hold a conference call to discuss not only this but also

its second-quarter results. jack dorsey issued a few lines saying square and afterpay have a shared purpose and together we can deliver even more compelling products for merchants and customers. square plans to integrate afterpay into its existing units. this will let even very small merchants get into the by now, pay later scheme. -- buy now, pay later schee. shery: here is a quick check of the latest headlines. china evergrande is selling stakes for around $418 million u.s. to ease funding pressures. the world's most indebted property developer will sell 7% to tencent and 4$ to an unidentified buyer. -- 4% to an unidentified buyer. visa backed simone biles after she withdrew from olympic events to look after her mental health. visa has an olympic sponsorship

deal. other major sponsors have also praised her decision. >> we are proud of simone. look, she's proven beyond a shadow of a doubt that she's may be top gymnast ever in the history of this sport, and clearly she went to tokyo would nothing but an idea of winning more gold medals and proudly representing america. and the reality is that we're all human beings. haidi: let's take a look at the left of the day ahead this monday. sydney of course reporting a record number of new covid cases of the weekend, while infections also seeing a rise in queensland, as brisbane went into lockdown. more on the virus situation, coming up. meanwhile, workers at a mine in chile, voted overwhelmingly to

go on strike. and the rba is in focus this week with shifting expectations. governor zola is expected to delay the tapering plans and keep the cash rate on hold tuesday. lots m

>> if you do get infected, the likelihood of you are getting a severe outcome of the infection is very low. it is much more likely that you will be either without symptoms or minimally symptomatic. so the vaccine is doing what you wanted to do -- want it to do. it's protecting people from getting sick. haidi: anthony fauci saying covid-19 vaccines still work extremely well spite reports of outbreaks among fully vaccinated people. sydney reported 200 new cave is

-- new covid cases sunday. let's bring in our managing editor. are these methods to contain the spread of delta working? >> good morning. we did see some troubling signs at the weekend. sydney recording some 239 new cases of coronavirus on saturday. but there are signs from the new south wales state premier looks like the cluster of these cases is being contained to a certain region of the city. so whether or not that will allow the residents of sydney, australia's most populous state to exit the lockdown earlier than the scheduled august 28 is yet to be seen. but certainly troubling signs further north in queensland where they had nine new infections and went into a snap three day lockdown is a real cause for concern for the

government, which just on friday came out and revealed after the meeting of the national cabinet its four step plan to easing restrictions and eventually opening up borders. shery: how is the vaccination going? rebecca: it's a very contentious point in australian we are waiting to see how this is going to affect the government long-term. in the opinion polls, the latest mann was last month, and another could come as early as tomorrow. the federal government has slipped a bit in the polls, but most recently with new south wales being the home of leader scott morrison, we have seen a lot of activity from him to reassure australians that the government is doing everything they can to get those vaccinations out and into the community with a target of 70%. so we will see how that goes,

but certainly not been an easy road for australia. haidi: no, and just anecdotally, finally getting my first shot on friday. it is not been an easy road to organize that, either. rebecca jones there. let's get more. we are joined by an associate professor from the university of sydney. great to have you. the settings that new south wales is under now, the extension for another month, keeping in mind the pace of vaccinations and testing, is that enough to get us through the delta flareup? >> i think the short answer is we don't know, but i am really quite concerned that it is not enough. i think what we are seeing is the consequence of a very infectious virus in a population that has not had exposure to coronavirus and is not vaccinated.

and i think that has been complicated because we have very poor communications that are not really suitable for the population where infections are now raging, a population that is largely from an immigrant background where english is not always the language that is spoken at home. so, i think we've got a lot of hard work to do if we are going to be out of anything like severe lockdown by the end of august. haidi: the naivete you talk about, the luck australians have had with not really knowing anyone in their immediate circles who have been adversely affected or died from the virus, like many people overseas has, how does that play into the warping of the risk-benefit, or the risk reward perception of getting vaccinated? lesley: that's an excellent question, because this whole

issue about risk, and the fact that the risk has changed over time, that the risks of people in certain areas of sydney are now facing is so much greater. and offsetting that with concerns about astrazeneca that have not been well communicated either. it means that it's hard enough for people like me with a background in infectious diseases and public health to follow the daily changes. and folks are not experts in this area. they are just very confused and very worried, and afraid to do anything. shery: one of the things that my family is confused about is about cross vaccinations. my family is in south america. they got the first shot of the russian sputnik v vaccine. theyu are -- they are overdue for the second one. there are no russian vaccines

right now. how much information do we have about the safety of cross vaccinations? because i cannot find anything that tells me clearly they can get another vaccine. i bet many people in other parts of the world are feeling the same. lesley: there is a reasonable amount of research for cross vaccination of the vaccines that are well-used in europe, the united states, the united kingdom, and australia, so that gradually the mnra vaccines plus astrazeneca. there is little or nothing that has been done on the other vaccines that are more nursed in south america, in asian countries, the chinese vaccines and the russian vaccines. the short answer is we just don't know. shery: i guess the big question then is, where do we go from here? when you are hearing already from the first countries that were vaccinated like israel that have to already get their third shots, while the rest of the

world cannot even get their first or their second one? lesley: yes. it's something the w.h.o. has tried to take internationally, that there is a real ethical issue here. the responsibility rests primarily with the richest nations in the world to make sure the poorest nations also get access to those vaccines. and we need to realize that we won't be able to open back up to anything like whatever normality is going to be unless and until all of the world is safe. but when you've got a situation as we have in australia where there's what has been described as the hunger games going on about who can get vaccines in the cities, any country areas, in the areas considered hotspots versus the areas that have very

s, oster -- very low cases, australians aren't really reading about what is happened -- aren't worrying about fiji, new guinea, let alone africa and south america. haidi: just another way of looking at the incredible inequality the pandemic has grown up. my last question is about herd immunity, whether we should still be talking about the possibility of herd immunity when we know that with the delta variant, even in a well vaccinated population, clearly mask wearing, social distancing measures still have an important part to play. lesley: yes. i think the issue is it does not much matter what you call it. we're going to have to get people, as much of the population possible vaccinated. one of the things we are realizing now --

you can call that herd immunity or you can call that getting x percentage of the vaxed -- population vantage -- population vaccinated. but it's obvious this is a disease that is going to become an endemic. it's always going to be there in the background. the assumption is we will be able to manage it so much better when all the population is vaccinated, when we have herd immunity. but the fact of the matter is we don't know. and we really have no idea what everyday life is going to look like, even if we got, say, 85% of our population vaccinated. haidi: dr. lesley russell at the university of sydney, really great to have you with us. about 19% of the australian population now vaccinated. we have some breaking news. the revised offer implying all

search is valued at 4.52 policy per share. the board is recommending -- 4.52 aussie per share. they have been urged to keep pursuing takeover talks after initially ejecting an -- r ejecting an approach to create a gas export giant. target shares had been rising on prospects for an improved proposal. we are now hearing that value is $4.52 per share. we heard from many analysts saying the rejection was just the start, not the end, and to expect more dialogue. we are hearing the board is expecting more due diligence. let's get you caught up to date the first word headlines with vonnie quinn. vonnie: china's economic

activity continues to ease in july, implying a more steady economy into the second half of the year. the official manufacturing pmi fell to 50.4 to 50.9 in june, below the median estimate of 50.8. the nonmanufacturing gauge eased. their rebound has stabilized as consumer spending recovers. china's security regulators says it wants to increase communication and oversight with the sec after the u.s. watchdog halted the ipo's of chinese companies pending improved risk disclosures. washington's move came in response to beijing's clampdown on private industries. israel says half of its new covid infections among people who have been fully vaccinated, with some people -- cases described as critical.

they warned the positivity rate are double the march numbers, with infections problematic for those 60 and older. an apparent decrease in effectiveness over time has led israel to give booster shots. the sister of north -- planned joint military exercises between south korea and the u.s. cloud inter-korean relations. pyongyang will closely watch to see if the south goes ahead with israel's. -- with the drills. 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'm vonnie quinn. this is bloomberg. shery: plenty more to come on "daybreak australia." stay with us. this is bloomberg. ♪ s is bloomberg. ♪

>> we clearly see inflation now in the united states in particular. >> it is obvious that we have a very important spike on inflation. >> every climate is worried about inflation. >> i am somewhat on the side of those who think that we may well have an incipient inflation problem. >> i do not think this level of inflation is a precursor of a large inflation boost, but

obviously one needs to watch this carefully. >> another thing is more structural. >> you have to take into account input costs going up. it's a clear area where there are some challenges today. our instinct is this will persist for sometime. >> the global supply chain is not working exactly as it should be. >> rise in volatility is such that we have to act. >> you are seeing a bit of inflation, but it is transitory, so it should not be a real concern. >> more or less all costs have gone up. yes, some of that goes to the customer. >> in the second half we could see a bit more price pressure. >> we do not believe there is carryover inflation but it is too early to say. shery: global business leaders talking about the commodities -- only after the bloomberg commodities index touched the highest level since 2011. extreme weather really has not helped, whether it is extreme

heat in the u.s. and canada, or frost in brazil. we have seen coffee at the seven-year high. it has seen as the worst day since august. those concerns about frost result eased multiyear highs for sure. this of course after gold futures also gained ground for the highest level in about two years. we had dollar weakness, not to mention the fed signaling its supportive stance when it comes to the u.s. economy, really giving that pop to gold prices. haidi: supply chain issues hitting the biggest automakers as well. ford sees its chip shortage extending into 2022, but says -- the cfo gave bloomberg has outlook. -- his outlook. >> what we see happening for ford, the chip crisis was a

disproportionate issue for us in the second quarter. one of our key suppliers in japan had a fire that shut down production in the quarter. 70% of the volume we lost, more than 70%, was due to that. they are up and running, so we will have those chips starting this quarter. 30% sequential improvement into the fourth quarter. but this situation is opaque. we're managing it day-to-day. it is something we are going to have to deal with through the rest of the year and potentially into. >> things that are a little hard to come by this day -- these days, copper, nickel, all the components that go into making batteries. is it possible to even forecast the supply of these when you know demand is so high and it is hard to get a sense of supply right now? >> that is the silver lining

coming out of the chip crisis for us. we are a new company. we are spending a lot of time benchmarking others. we are talking to all of our big tech partners, leaning into how they manage complex high-tech supply chains and applying that to what we are going to do with batteries. we need to get deeper into the supply chain and gets the -- get to the source. we have to make sure we have multiple sources for certain commodities that will be critical for us. we're learning a lot from the chip crisis and we are going to apply that to our purchasing process. our industry has typically been focused on just supply. we are -- just in time supply. we are focusing on how we manage the risk. then for batteries, which will be a key component for us going forward, we are going to be deeply involved in that for me to cheat extent point. >> -- a strategic standpoint. we talked to all the

manufacturers. we are going deep into the supply chain to understand what is happening there. i have to tell you, they are telling us they are increase in capacity. that is important, but no one can really call when this will ease. we see it going through the second half of the year potentially into 2022, and we will manage at the best we can. for us, one of the things that helped us is incredible demand for our products. we have incredible demand for new products. it's just allowing us to manage it the best we can but also providing us the opportunity on the top line. stronger mixed management to get everything that we can out of the situation. >> that is a very diplomatic way of saying you can raise prices and people will still come flooding because demand is so great. certainly we have seen prices increase dramatically, particularly on car lots. as supply chain issues ease, how

can you keep prices this high and keep them going up? john: we have strong demand for our products. we have been consistent in this. as supply and demand become more imbalanced you will see some price reduction, and the pricing moderate over time. but our product, the strongest product lineup i have seen in the 30 years i have been at fort. that will continue to give us tailwinds. we see that happening through the rest of the year and strengthening next year because we are going to be launching the new bronco now. the maverick. next year we had the f1 teen -- f1 15 lightning. we have a lot of product that will keep the tailwinds coming. shery: to ford cfo there. time now for morning calls. focusing on australia ahead of the rba decision tomorrow. they see their exporters as wendi winters. many are experiencing tremendous

operating conditions and double-digit price increases. the weaker aussie dollar is also supportive of these sectors. haidi: let's take a broader look. they downgraded their forecast on the back of extended lockdowns prompted by the spread of the delta variant. that put a pause on momentum in the economy. likely reinforcing the dovish guidance. hsbc reporting second-quarter earnings later monday. this is bloomberg. ♪ ♪

haidi: hsbc will report second-quarter earnings later on monday. asked her pressure on costs -- extra pressure on costs. what are you watching for? >> analysts expect lower revenue compared to this time last year because of a focus on cost. they did mr. cost targets -- miss their cost targets last quarter. also loan growth. in trading, fixed income currencies and commodities trading we down about 31%. one good news for shareholders that might come out today is

prospects of a buyback or an in crease in that dividend. banks can now do payouts and we expect to see some news about that today. haidi: what about the outlook for the second half? nabila: china regulatory issues are front of mind. this is a bank that has cut thousands of jobs to try and refocus. so far this year china is the top underwriter of dollar bonds sold by hong kong, macau, and chinese companies. that is really weighing on the outlook and that is what investors will be hoping to hear a bit more on today. haidi: as you say, this is a bank that has really pegged its entire direction to growth in china, right? is that expected to cause more trouble? nabila: that is exactly right. they have got out of the domestic business in the u.s., they closed 90 branches. so china is their very main

focus. so any kind of rupture in the chinese market, they are very much exposed to, and investors will really be looking out for more news on that to see if there is any clarification that hsbc can give on those issues as well. haidi: not be a lame t -- nabila ahmed there. we will be talking about those results in a few hours. here is a quick check of the latest business flash headlines. exxon hinted at a strategic overhaul after reporting its highest profits since the start of the pandemic. they saw profit of $4.7 billion in the second quarter, it's best period since late 2019. they will --

malaysia has accused bytedance of illegal operations, ordering them to end mobile applications in the country by next week. a statement said they should also stop marketing to malaysian consumers. they are aware of the notice, adding that bytedance.com does not -- binance.com does not operate out of malaysia. a playstation 5 game is being delayed. the sequel to horizon zero don was tofdsdsdsd the videogame industry has been hit by the latest covid-19 production challenges. macau's gaming revenue for july missed expectations as new covid-19 flareups put border openings under question.

growth revenue rose to just over $1 billion, which was lower than the median analysts estimate. that is it for us. daybreak asia is next. this is bloomberg. ♪ s is bloomberg. ♪

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haidi: good morning. we are counting down to asia's major market opens. shery: welcome to daybreak asia. our top stories this hour -- china's security regulator calls for talks with the sec after leaks over beijing's crackdown trigger leads -- cell -- leads to a selloff.