haidi: hello and welcome to "daybreak asia." i am haidi stroud-watts in sydney. sophie: i am sophie kamaruddin in hong kong. shery: good evening from bloomberg's world headquarters in new york. policymakers could start tapering later this year.

a warning from tencent. investors should brace for more regulatory tech turbulence. plus the imf posts a break on afghanistan spending, curbing access to reserve access days before they were set to receive a windfall. markets were glued to the fomc minutes from the july meeting. the consensus seems to be most officials agree we could see a -- those asset purchases later this year. the timing exactly of tapering is still a little bit of a mixed bag. we were watching comments very closely. the tapering would reduce support to the economy but also about a rate hike which would be an outright tightening. it seems those two are different issues. haidi: it would be in a very interesting contrast when we see the rbnz choosing prudence over going ahead with what markets had been expecting on account of the latest lockdown, expecting

potentially an effect on what the bank of korea might do as well. watching how delta affects monetary policy and the growth outlook. we are continuing to watch china. they put up a valiant effort but it seems like these dip buyers in china tech -- take a look at the internet fun. we are just seeing two straight days of outflows to the exchange rate of fund is on track to rake its streak of inflows as losses approach about 60% from the mid-february high. the wide-ranging revelatory crackdown and we heard from tencent about it, too. shery: one of those has been hit really hard. the slowest sales growth in two years and their president morning of more regulatory curbs to come. haidi: lots to talk about. big interviews on a is the earnings day. they will all be talking to us about their latest earnings results. let's get you the market set up

with sophie kamaruddin in hong kong. sophie: lots of earnings from australia. aussie stocks looking at some losses being extended after we saw the asx 200 cap eta client. we are seeing weakness for asian stocks ahead after rebounding from an eight month low on wednesday ahead of the cyclical bounce and we are seeing futures had lower after the software cash -- software cash session. new york crude trading below $65, off by more than 1%, trading near a three month low. switching out the board to focus on currencies this morning, checking in on the yen, below 110. they are going bullish. the korean won against the japanese yen, saying the underperformance is looking stretched. check out the aussie dollar holding a three-day drop, looking to extend gains ahead of the jobs data due later this morning which will reveal the initial impact of the latest lockdowns.

was fargo saying brace for a drop of as much as 2% in the next two weeks after a sleepy summer. we did see a drop in kiwi vol. the kiwi holding below 69 as we see the latest remarks from the rbnz, saying that they do see an assessment likely in october for the ocr in light of inflation and capacity pressures amid the strong rebound. a harkin -- hawkish hold. we are expecting new spouse from indonesia later today, haidi. -- we are expecting a dovish hold from indonesia later today. haidi: slightly better than expectations when it comes to the exchange in australia. that final dividend per share, more than expected at 1.11, down. that stock is up about just shy

5%r to date. let's get you to vonnie quinn who has our first word headlines. vonnie: the united arab emirates says it is hosting ashraf ghani after he fled afghanistan. speaking on facebook, he said he is in talks to return to afghanistan and that he did not flee with any money. the taliban set up -- at the airport, raising concerns the group may prevent citizens from fleeing. the imf says the taliban led afghanistan cannot access special rights ahead of an allocation set for next week. the country was to receive 450 million u.s. dollars worth of fdr's after the imf approved a $650 billion infusion globally. members say 18 republican lawmakers have urged u.s.

treasury secretary janet yellen to intervene at the to prevent access to the fund. bloomberg's learning details about the types of questions the fcc is asking chinese companies applying to go public in the u.s. we are told those questions focused on their offshore corporate structures. queries include the nature and direction of cash flows through so-called variable interest entities which allow for certain -- on foreign ownership. the fcc has also asked for disclosures on political and right were risks in china. two u.s. senators want the federal trade commission to launch an investigation into whether tesla uses deceptive marketing practices by labeling its driver assistant systems as autopilot's and full self-driving. in a letter, the lawmaker said the automaker has "repeatedly overstated the capabilities of its vehicles." they say that could lead to potentially deadly consequences.

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. shery: the minutes of the federal reserve's july 20 eighth meeting indicated fomc members are getting ready to start tapering bond purchases. the question is when. kathleen hays is here with more on this. there seems to be conflicting opinions on the timeline. kathleen: yes, but if you know how to read the fomc minutes language, you will understand that this is to pay more towards the people who want to go sooner rather than later. it is not a done deal. it is interesting that they say most fomc officials agree to start the taper in 2021. core cpi is at 4.3%. the headline is that 5% plus. target is 2%. they need to make more progress on maximum employment but they

are getting closer. let's look at a key phrase i want everyone to look at. various participants commented that economic and financial conditions would warrant a reduction in coming months and several others indicated a reduction in the pace of asset purchases was more likely to become appropriate early next year. now, they did use that word, "most." most is more than several. i guess various is more than several as well. but you have to understand that someone -- still, september, october, november, or january, they are going to start tapering and relatively soon. they did mention the virus, the delta variant, but it does not feature prominently in the minutes. they did not seem too worried about it. a couple other things. the minutes said no decisions regarding future adjustments to bond purchases, so no taper decision rate at this meeting. most of them seem to agree that we don't have to taper the

mortgage backed securities first. we can do treasuries at the same time. key things to watch, there's two of them. jay powell's remarks one week from friday in jackson hole, the kansas city symposium, when he opens the event, if he chooses to send a message of some kind, he can. the september meeting, another place where something could be said that will give us more information on the definite times of taper. shery: -- haidi: kathleen hays had let's get some analysis on what markets are expecting. our next guest is a global macro strategist now out of boston. great to have you with us. i'm wondering how strong is the hawkish contingent, being able to push the path of how we see tapering to place? >> i think that my view has been that powell has been on the more dovish side of things since he ultimately joined as chairman and what we heard in some of his conversations earlier. this week, he had been in

monetary policy form, dovish leaning. having said that, we are talking about a fed that is looking to get ready for tapering so they are vocal and they are starting to get their way. i completely agree with kathleen in terms of how to interpret the few, the money, the several. you know, where i come out on it is we are going to get some kind of taper announcement this year. more likely in my mind at the end of the year, but that is putting much what the market i think have been expecting for quite some time. the fed has been communicating that for the last few months already. shery: we continue to see this mixed picture when it comes to eco-numbers, whether it is consumer sentiment, retail sales manufacturing actually growing, it seems to be a mixed bag. marvin: i mean, certainly, the delta virus has thrown a wrench into this recovery. if we think about where we were in the beginning of the year, we

were at full clarity once we came to the fall. we are entering the fall and we have peaked growth behind us and we have uncertainty around consumer confidence. it is playing into the discussions no doubt. we did not hear much about delta during the press conference at this last fomc meeting but it was mentioned only five or six times in the minutes so they are certainly looking at it. having said that, there is so much liquidity in the system already that they could probably move forward with taper even with those uncertainties. shery: marvin, stick around. marvin loh is staying with us. we have plenty to discuss but another big interview also coming up on friday morning, asian time, we will be hearing from the rbnz governor, adrian orr, after a decision that poured cold water on the global policy outlook. up next, tencent puts investors on notice, warning of more regulatory curbs to come, plus malaysia's search for a new leader yields two front runners. the singapore institute senior

fellow tells us what he expects. this is bloomberg. ♪

haidi: tencent has a stark warning for investors. brace for more regulatory curbs on china's tech sector. it reported the slowest pace of quarterly revenue growth in more than two years. that's get over to stephen engle, who joins us out of hong kong. what is the company saying? >> they are trying to answer some questions that investors have. how long is this revelatory crackdown going to last? the government early this week and late last week gave an indication it could be a five-year campaign but how deep is this going to go? it is already 10 months in. there has been $1 trillion wiped

off of these companies on the markets. tencent has taken it on the chin in the adrs overnight -- overnight, they were up. the results gave a little bit of clarity. we have two sides of the story. you have the results which are essentially an offshoot of the regulatory crackdown and then you have the guidance. let me get right to the guidance. the president of tencent, he said we should expect in the near future more regulations should be coming then should be expected because the regulation has been quite loose over an industry like the internet considering its size and importance. martin lau consistently said compliance is the lifeblood and it looks as though they will comply. i want to comply. there are two main things driving down revenue. revenue was in line with expectations in the second quarter but it was the slowest pace of quarterly revenue growth

since early 2019. two key areas we have to look at, gaming. obviously, it has been under pressure and we saw deceleration of growth there. education cap, online tutoring, it has been decimated. tencent has a couple of big entries. vip for one, and that is a big advertising revenue generator. martin lau and tencent essentially saying they expect a further hit to online ad revenue due to reduced spending from ed tech companies pay for gaming, tencent wants industry and regulators to limit total campaign for children. this coming out in the conference call. the company saying it is complicated but doable to prevent miners from gaming addictions and proposes to work with regulators. there's going to be more regulation. there's going to be compliance. there could be more uncertainty going forward. shery: really interesting for baidu to tap the global bond markets. what do we know about the sale?

stephen: it is interesting timing. we know that xiaomi hit the global bond market for $1.2 billion sale in july with a big demand, $7 million in demand. we are hearing baidu, this is the first want to test the global bond market with a $1 billion offering according to people familiar with the situation since beijing escalated this crackdown. they will be using this for general purchases and debt repayment. baidu is repositioning itself in this highly competitive platform economy in china, more as an ai, and less reliant on a search engine. there has been demand with the xiaomi offering and this offering from global and domestic bond buyers. they need the money right now. shery: stephen engle. marvin loh is still with

us. how do you protect your portfolio against china uncertainty given how big the country is in terms of waiting -- wading in industries? marvin: it makes her a difficult environment to ultimately overweight holdings. one of the challenges i have is that the risk that we are trying to assess here is somewhat -- you cannot analyze it. just get to the end result of what chinese government is really trying to do here. ultimately, the adversarial relationship which seems to be developing even though we have a change in administrations is ill out there. with all of the uncertainty that we mentioned in the first part of our discussion, around the delta variant and around the global growth issues that are starting to emerge out here,

chinese stocks are ultimately taking a lower ranking and how to approach that. shery: what would be better opportunities around the region if you wanted that tech play? marvin: certainly, there are supply-chain issues that are going to support certain markets . taiwan anterior, they have much less uncertainty if ul. they also have valuations that while not necessarily cheap are somewhat more attractive than what you see in the developed markets and markets that are here. the focusing on those types of opportunities, you know, is a little bit easier to assess ultimately. haidi: state street global macro strategist marvin loh joining us from boston. always great to have you, marvin. more analysis coming up ahead when it comes to china's tech crackdown.

we will be hearing from paul, international's representative in the next hour and you can get more context on red lines, china and big tech, available on youtube. coming up next, a bloomberg scoop. the imf is blocking a taliban led afghanistan from accessing sdr funds. we have the details ahead. this is bloomberg. ♪

shery: he is a quick check of the latest business flash headlines. robinhood slumped as much as 8% in after-hours trading after warning that seasonal headwinds will result in lower third-quarter revenues. the trading platform reported a second quarter net loss of $502 million on revenue of 565 million dollars. crypto trading revenue soared more than 4500%.

state backed investors will recapitalize china asset management, signaling the government is unwilling to allow a default for now. they include china insurance investment and china life asset management. sources told bloomberg the fresh capital amounts to almost $8 billion. they posted a record $16 billion loss in 2020. he sunday blue -- nissan debuted its first refresh in over a decade. they recently forecast return to annual profit for the first time in three years. the coo says nissan will continue to push for electrification in four u.s. products. covid-19 outbreaks and the global chip shortage continue to pose a challenge. >> the chip shortage is also driven by the capacity. already, the actions have been taken by our suppliers and this loss will go away. whether this will go away in the

short-term, i don't think so. whether it will continue in the long-term, i don't think so, but it will continue in the midterm. haidi: let's get to a bloomberg scoop. the imf will block a taliban led afghanistan from accessing shown drawing rights. the country was set to receive 450 million dollars of fdr's. let's bring up jodi schneider. what are the implications of this as the taliban tries to gain some semblance of global cut ability? -- credibility? jodi: it means in the government is cut off from using those fund reserve assets that could have amounted to $500 million. it will deprive the taliban of those key resources. it is part of a plan -- imf plan to inject 650 billion dollars of

liquidity into the global economy. afghanistan could still receive the assets but it would not be able to use them because the new regime has not received international recognition. we just found out about that today. the taliban will be getting that. shery: talking about international recognition, we are hearing that the exiled president is in the united arab emirates. what is he doing there? jodi: we have heard that. just today, that the afghan president who left, the exiled president, had gone to the united arab emirates. we basically had heard from him on facebook saying that he is in the uae and left afghanistan to prevent alleged.

he also wants the taliban to work on building an inclusive government. he is going to go back anytime soon. we heard today from the head of the joint chiefs of staff that the u.s. intelligence did not foresee the rapid collapse of the afghan military before the troops are withdrawn from the country on the former leader. shery: what do we know about citizens fleeing afghanistan? are taliban soldiers allowing that? jodi: it is somewhat a really fluid situation there now. we are not seeing some of the chaotic things just days ago at the airport where people were hanging on the plains, trying to leave the airport, which has been secured by troops, does

appear pretty calm at this moment. they are just going around the clock to get out -- to get people out. can people get to the airport? when they get there, they need the right kind of -- if they had them before getting to the airport, they could face serious repercussions including death. complicated situations for people who worked with the u.s. government. they have to get to that place where they can be safe. shery: jodi schneider with the latest. on afghanistan. here is the picture across the currency markets. we are seeing the japanese yen seeing really narrow trading this whole week around that 109 against the u.s. dollar. of course, we have been getting

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shery: -- vonnie: this is "daybreak asia." minutes from the july fomc meeting show wide agreement among officials that they obtained their inflation goals but so, you can make progress on their employment mandate. on the timeline of when to reduce the bond buying, the minutes reflect most participants judged it could be appropriate to start reducing the pace of asset purchases this year. the biden administration will start offering booster shots on september 20 to all vaccinated

u.s. adults. the move is a massive expansion to a program previously limited to those with weakened immune systems. this as infections from the coronavirus delta variant surged. biden said the u.s. is prepared to deal with the delta threat and that vaccinations are the best protection along with masks. singapore will offer vaccinations to short-term visa passholders. the ministry announced the decision, saying the eligibility for expansion includes special passholders such as those on training work permits. vaccinations will be made available to eligible short-term visit passholders who have been in singapore for at least 60 days continuously. the extradition hearing for huawei's cfo is over, and being more than two years of proceedings that triggered an unprecedented geopolitical tussle among the u.s., china, and canada. a decision from the canadian judge on whether or not to send

him to the united states to face charges of criminal fraud is likely months away. china says the case is politically motivated. 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. haidi: we are watching nvidia after the largest u.s. chipmaker topped estimates on second quarter sales. the company is warning its bid is taking longer than expected. let's get more from our west coast reporter, ed ludlow. what stood out to you? ed: nvidia is able to grow. we saw a big surge in chip sales while being supply constraint. the chip shortage is still present and it will continue for most of next year. that is what executives have to say on the earnings call. nvidia is one of the pioneers of the business model that has been

so much talked about over the last year almost or so that they designed the technology behind the tips and outsourced production to the likes of tsmc, samsung, and that is where the constraint is. nvidia did say that they were able to at least secure enough supply in such a way that they can meet their growth targets going forward. shery: what is happening with nvidia's attempt to purchase --? ed: there was a change in language from the prior quarter. nvidia says it maintains confidence that the arms deal will get done but it did acknowledge that talks with regulators -- and remember, this is not just one regulator. it is china, the u.k., the united states, and the european union -- they are taking longer than expected. the stakes are higher now. the value of the deal increased by $10 million because of the run-up in the share price. investors going into this were a little nervous that there would be a lack of updates and

obviously, this is not a positive update in the scheme of things. haidi: what about crypto mining? was that a factor? ed: it did boost the topline in the prior quarter and somewhat in this quarter. basically, the guidance from nvidia is chip say so specifically for crypto mining is actually -- crips designed specifically for court -- chips they designed for crypto mining will not be as prevalent. the crypto industry or crypto mining were siphoning of supply from other industries like gaming and data centers so they came up with a specific shape but they don't see it comes bidding in a major way going forward. shery: in asia, we have seen this new trend of outflows from the chip related stocks. the cost of taking a huge hit. what does nvidia tell us about the outlook for these chipmakers? ed: interesting because they say the demand for data centers is

sustained but as i outlined, there are supply constraints. the shortage of supply is going to continue. if you look at samsung, sk hynix, most stocks have come down. the situation in asia seems different. what you can point to is the type of chips. they specialize in dram or memory chip speed we know that leadtimes in some sections of the semiconductor market stretched in july and august, microcontrollers, but leadtimes improve. reading across the fortunes of these different stocks, it seems the case that not all chips are created equally. in asia, the supply issue seems to be improving and that is weighing on how investors treat those stocks. shery: ed ludlow with everything to do with chipmakers. let's turn to robinhood because it's revenue more than doubled in the second quarter to 500 62 $5 million. the brokerage is warning investors not to expect such

good time to continue, sending shares south in after-hours trade. the senior analyst of simtech, julie, joins us now. what do they see as an issue going forward? julie: the issue is two full up you do have the fact that trading volumes are slowing. on the equity side, less so on the options insight, but that is somewhat seasonal and also just a factor of it being so strong in the first quarter especially in the early part of the second quarter. second issue is that crypto is driving a much bigger piece of the revenue. crypto volatility is very volatile. crypto volumes tend to be volatile, hard to predict, and hard to have good visibility. shery: there were a lot of questions being asked, everything from did they introduce cryptocurrencies, do they introduced merchandise -- introduced merchandise on that

call? julie: they started their call by answering questions from retail investors. they gathered those questions over the last few days, over 1300 of them that came in. a lot of them centered on crypto. new crypto features. that their countries are interested in. it is a reflection that over 60% of your users now have brought crypto. they want more kinds of services. crypto on its, more coins available. a lot of the questions centered on that means the company has a lot of work to do still to be able to serve these customers with the kind of offerings we want. haidi: is there any kind of visibility on how long it will take for them to be able to add that level of crypto functionality, the added services that as you point out are quite clearly what users want first and foremost? julie: that was something we did

not hear on the call with timing. we understood from the company that they realize these are important priorities. working on them or looking into them seriously. we heard nothing on exactly when we can expect these. crypto wallace are complicated. the company says they are hard to implement at scale. we know they are working on it but it does not seem it is really a near-term opportunity or something they are going to solve very quickly. working on it. it will cost a lot of money to get it done. haidi: right, right. we will continue to watch this fascinating story with robinhood. julie charielli. we continue to talk about kathy would, of course. -- cathie wood, whose strategy has increasingly drawn critics. her calls on china,

cryptocurrency, on electric vehicles, you know, they have all been within the realm of controversy. are we starting out to see the sort of shine come off everything that cathie wood touches turns to gold type theory? shery: we are seeing more high-profile investors speaking out against some of those calls made. we have the cio questioning her valuation expectations and those other names also really having the short positions. short interest on the etf's rising since the end of june to almost 5% of outstanding shares and you can see the latest tweets coming there. there were few of them overnight. about 37 tweets of unsolicited advice on the nuances of valuations and return ratios, but all in all in all really, not too happy with cathie wood, so we continue to watch that developing story. coming up, we

malaysia as search for its next prime minister with a political expert of the singapore institute for international affairs. he joins us next. this is bloomberg. ♪

>> beijing's wide-ranging revelatory crackdown has driven

steep losses for chinese stocks. sophie kamaruddin is tracking those moves. any signs of a possible reversal? >> we could be getting technical indicators that could be pointing to relief for the nasdaq golden dragon china index. tracking the investments we saw in chinese a-shares and h-shares on wednesday, illustrating how that gauge, 14 week rsi, state below 30 this month, a trading signal that only happened eight times in the past 20 years. flipping the board, that was then followed by gains over the next 100 weeks on average. the golden dragon 10 index returns 68% with no losing record. they have more analysis on this. we have seen that shorting chinese stocks is still remaining a popular trade. buyers appear to be sidelined. we have speculation building

potentially from china. shery. shery: let's turn to malaysia. the search for a new prime minister narrowed to two front runners. the national alliance, the main opposition -- our next guest says any downgrade aside from politics. it would be because of economic uncertainty joining us -- economic uncertainty. joining us is our guest. great to have you with us. let me start with the economic picture in malaysia. how dire are things given the pandemic as well? >> well, for example, the forecast for malaysia's economic growth has been half because of the mounting pandemic numbers for example up to 20,000 of new infection cases everyday.

the hospitals are stretched to the limits in terms of accommodating various asians exhibiting serious symptoms. shery: we are expecting that analysis from the palace. what are your prospects here and how significant could this be for the country? ei sun: of course, the front runner is indeed the immediate path of the deputy prime minister. if he were to become the next prime minister, it would be more of the same. mainly that almost saying the cabinet with reshuffling of some of the portfolios -- it was the same, shall we say, less than inspiring -- which has in a sense not handed malaysia pandemic quite well.

it was not quite able to revive malaysia's economy. the person who was part and parcel of that cabinet, essentially the same cabinet again. i think malaysians would need to work very hard in order to pull the country out of the pandemic as well as the economy. >> what do we know about the economic agenda given everything you talked about and the vulnerabilities of the economy as well as the potential for a ratings downgrade? ei sun: i think malaysia is struggling with trying to balance on the one hand knives which are affected by the pandemic and on the other hand, a livelihood such as jobs, such as whether businesses are open in order to secure the livelihood of the people.

the previous government of which he was very much a part of, a lot of flip-flops in terms of policy implementation. while they would have a very strict lockdown, but certain industries would be allowed to open. more industries call for opening up. they were not able to do so. this affected indeed the livelihood of especially those that day wage earners -- those typically are at the lower income bracket. malaysia over the past few months has seen a lot of people being driven to socioeconomic desperation. the legendary white flag being raised to bluntly ask for assistance. black flags as a sign of protest.

the socioeconomic's would persist. shery: is there hope we could see a more bipartisan approach? ei sun: the country, assuming he will be the next prime minister, it is not so much the other side of the political divide. it would be not extending cooperation to him. the people of malaysia will become even more, shall we say, set up -- set up. -- fed up. these failed policies which have not been able to arrest the growth in malaysia's pandemic numbers, or a lot of economic projections. people are looking for fresh ideas. hopefully, he will bring some new faces and professional faces

and competent faces into his cabinet such as hopefully some new ideas and new qualities can be rolled out. >> ei sun oh, senior fellow at international affairs. you will be hearing from the nissan co, who will be joining us on his company's push for electrification. we will hear from him next. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines. tencent foreign investors to brace for more curbs on china's tech sector, telegraphing that beijing plans to expand restrictions. china's largest company reported the largest revenue growth, underscoring the impact of regulations on the ed tech sector. the month-long crackdown has caused tencent to lose more than 40% since the january peak. >> short term uncertainties and a lot of regulations that will be coming. the regulation has been actually quite loose over an industry like the internet, considering

its size and the importance. >> nvidia's results and forecasts topped wall street estimates but warned its bid to acquire arm is taking longer than expected. revenue will be about $6.8 billion. the chipmaker posted sales of 6.5 $1 billion in the second quarter. earnings coming in at $1.04 a share. shery: counting down to the start of trade in tokyo and seoul, some of the stories we are watching today. in korea, it continues trading after its 850 billion won ipo. the price at the top of its market in the range of 59,000 won. the bok will release end of june external debt data. the central bank push to hike rates is in focus in the next few days after the rbnz decided to delay tightening and we are watching how the won will perform when it starts trading after it led gains among

emerging asian currencies on wednesday, authorities said they are closely monitoring any excessive fx moves. in japan, we are watching visas after it agreed to buy the research group in the push to expand overseas. the deal is valued at $102 million. we are also keeping an eye on the progress ian vaccinations. despite a late start, the government is on track to overtake current u.s. inoculation levels. honda is on the watch when it starts trading. nikkei is planning to expand its factories in china to build more electric cars. haidi: sticking with the automakers, nissan ceo o said the company will continue -- coo will continue to push for electrification of its core products in the u.s.. our guest told matt miller he is expecting the global trip short is to continue in the midterm. >> nissan, in the united states, 99 percent of our business is

passenger cars, suv's, and the frontier, which is the pickup. 1% of our businesses is a full-sized pickup. nissan being a japanese brand, where we lead technology on sedans, suv's, is the prime focus for nissan. when it comes to electrification also, first, we went with leaf. now, we are going with aria, the segment interior space. moving forward, we will go for electrification in our core products. and that is why we say that by early 2030, 100 percent electrified offerings will be available in core markets and when it comes to the united states, we said 40% of our sales by 2030 will be battery electric. this is just the reference and

obviously, it will depend on how much quickly we are moving as an ecosystem and this 40% can increase. matt: you mentioned how small the market is and i know you do good business with the frontier but a lot of times, americans want something bigger like to tighten. -- titan. do you plan to stay in that market, as competitive as it is? matt: for us, market is one thing. the second is what customer -- as nissan? customers in the united states aspire for sedans, suv's, and the pickups. titan is a great pickup truck and we are focusing on that. as i said before, in our whole lineup, our main focus has always been in the sedans and suv's and the smaller pickup

trucks. matt: let me ask you about the supply chain and how you are working together with renault and mitsubishi. is it in every man for himself issue here -- an every man for himself issue here or does the alliance work together in terms of getting chips to all of the producers? matt: we have -- ashwani: we have alliance purchasing which is responsible for the global sourcing. semiconductors of course are thought of as global sourcing. the whole world is going through this chip shortage, and we are managing it. we are managing it together as alliance, and we are relocating region by region, product by product. however, what we saw recently is -- i will not say 100%, but unfortunately, southeast asia

pandemic surge, we are seeing impact on the global industry again. so we hope -- it is not about tip shortage yes or no. it is more about how quickly the world is out of this pandemic, keeping the people safety -- people's safety. shery: let's turn to sophie for what other companies she is watching ahead of the trading start. sophie: in australia, watching reaction to results from across sectors had newcrest reporting a record profit. origin energy seeing a steep annual loss. we did see the company return to growth, boosting its dividend, starting to skip the final payout even as the company returns to the black. in korea, switching out the screen, we are waiting on a trading debut in seoul and keeping chipmakers and focus given the slump in shares as the sector faces weaker demand or or supply. morgan stanley saying that

winter is coming for the semiconductor industry. samsung shares have been down 11% since august 4. the stock looking oversold according to the indicator. the market opens in sydney, seoul, and tokyo are coming up next. this is bloomberg. ♪

♪ shery: hello and welcome to daybreak: asia. sophie: i'm in hong kong. haidi: i'm in sydney. taking a look at the major markets in asia. asian stocks set for declines after wall street clears. policymakers could start tapering later this year. a warning from tencent that says investors should brace from a

regulatory turbulence courtesy of beijing. china's bailout despite a bad debt manager posting a record loss for 2020. sophie kamaruddin is in hong kong. sophie: a number of things in fact -- in markets today. we have speculation building that a property tax may be in the offering from beijing. we've seen downside moves for japanese stocks today. the yen losing ground, holding below that handle. the 10 year gaining some ground. we may see a mixed session with uncertainty about the japanese elections as well as consolidation of the fiscal budget from japan. checking in on the open in south korea. a trading debut on the watch.

the kospi be under pressure. the korean won easing some of the losses yesterday. now back a -- back above that 11.70 handle. the kr w's underperformance is looking stressed. we are keeping a close eye on chipmakers. outflows have been accelerating for that sector as the sector may look at weaker demand as well as more supply. the industry could see a winter coming. switching out the board to check in on what's going on with australia. we have the aussie dollar looking higher. the asx 200 is under pressure with a rash of earnings to look out for when it comes to reaction. the kiwi dollar holding losses below 69. the rbnz governor affirmed that

the rate review for the central bank will be maintained in october. we have oil under pressure. brent crude coming online below that 68 buck a barrel mandate. it's check out the offshore yuan, holding below 649. volatility keeping low this summer. wells fargo warning that we could see a drop of up to 2% in the coming weeks in the face of growing concerns around china's slowdown as well as regulatory uncertainties. shery: let's bring in our next guest who thinks the market is getting too pessimistic. he sees significant discount. eric, great to have you with us. does this mean that we should be jumping back into ems right now? eric: i think it might be a little bit premature to catch the proverbial falling knife.

as you highlighted a moment ago, we think that the growth pessimism that has creeped into the market is going a bit too far. in the first half of the year, we had unbridled optimism about growth. we have fears of inflation. it feels like we shifted rapidly into a world where everybody is worried about the downside. i think what's really going on is that people have had to adjust their growth expectations. we have things like copper and oil down 15% from their highs. i think that we have a number of emerging markets trading at significant discounts further developed market peers. we think there will be opportunities presenting themselves. it might be premature still to jump back in. shery: especially at a time where it looks like everybody is more bullish on the dollar. will that act as a headwind for emerging-market assets? when could we see some dollar weakness next?

eric: i think that's a great question. typically, when you have these global growth concerns and risky or procyclical assets under pressure, the dollar tends to do better. however, it's our contention that the growth outlook for a number of economies in asia and across em are in relatively good shape. as we get past the uncertainty about the fed tapering announcement, which we do not expect to cause too much volatility, we would expect the u.s. dollar to start coming back under pressure in the latter part of the year. haidi: when you take a look at the difference between the rbnz and australia continuing to try to handle covid, does that make a difference when it comes to the attractiveness of assets? particularly with what happened with the kiwi dollar and other assets this week. eric: i think you raise an

important point. that is that we are in a world now were number of central banks are talking about taking away some of the emergency stimulus measures that we've seen. the rbn said is a great example. the bank of korea is another example. we expect rate hikes before the end of the year. bringing it back to this zero covid strategy. i think it does raise quite a bit of uncertainty. for those economies that are not yet prepared to live with the covid scenario on the ground for them, it means that they are vulnerable to even a small outbreak of covid, like we've seen in new zealand this week. that creates an enormous amount of market uncertainty in terms of trying to anticipate when the central bank will or won't move. i think the market was prepared as we were for a rate hike in new zealand this week. with the recent lockdowns that

we've seen imposed, that has changed the calculus in the short-term. it creates quite a bit of unnecessary uncertainty. shery: you talk about enormous uncertainty. china with the extent of the regulatory crackdown, the target still unknown. at what point can you even say, you look at a chinese stock and say, it's adequately discounted now? eric: look, this is one of the big challenges for global equity markets today. how do you price in or make a guesstimate for how much policy uncertainty to account for? i don't think the regulatory pressure in china is over. we've seen a number of policymakers and china talk about the need for a more

equally distributed amount of wealth in society. that's going to have implications for not only the technology sector but perhaps the education sector as well. perhaps a real estate. a number of the traditional drivers of growth in china's economy. it is our view that with significant political developments and scenarios next year, that china will maintain economic stability. we are not expecting a huge amount of volatility in the bond or the currency markets. i think that fears over china's growth slowed down are premature. that being said, we have to accept that there will be further policy pressure in the near future. shery: eric robertson, thank you very much for joining us. let's turn now to vonnie quinn

with the first word headlines. vonnie: the exiled afghan president fled afghanistan. he himself said that he left to prevent bloodshed, adding that he's in talks to return to afghanistan. he didn't flee with any money. the taliban has set up checkpoints at cabell's international airport, raising concerns the group may prevent citizens from fleeing. the ims says taliban led afghanistan cannot access special drawing rights ahead of an allocation next week. they were to receive $455 million after the imf approved the $650 billion infusion globally. house members say 18 republican lawmakers had previously urged the u.s. treasury secretary janet yellen to intervene at the imf to prevent access to the fund.

an ongoing bankruptcy trial saw the former president assert ignorance over how many people died from oxycontin. when pressed for answers, he didn't know how many deaths came from misuse of the drug in the united states. some have come under scrutiny for oxycontin's role in the opioid crisis. they deny any wrongdoing. bloomberg is learning details about the price -- questions the fcc is asking chinese companies applying to go public in the u.s.. they focused on their offshore corporate structures. queries include the nature and direction of cash flows through variable interest entities which allow for certain dating restrictions on foreign ownership. the sec has also asked for disclosures on political and regulatory risks in china. global news 24 hours a day on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. this is bloomberg.

this is bloomberg. shery: we have an alert on the bloomberg in malaysia. a lawmaker from the united malaysian organization party now saying that malaysian lawmakers will back the former deputy prime minister. they are now meeting the king on thursday. they've been summoned to meet the king on thursday. he was deputy prime minister in the coalition. he was the leading figure in the malaysian battle against the pandemic. malaysian lawmakers have submitted their choice for a leader to the palace and we wait for the king to announce an outcome as he searches for a successor. we are hearing from a lawmaker that the malaysian king has summoned lawmakers who back the former deputy prime minister. haidi? haidi: we will continue to watch

those political developments out of malaysia. let's take a look at just some of the stocks that are trading at the moment. australian markets are reacting at the moment. new crest. when it comes to the record profit on higher output prices as well, australia's largest gold producer. 55% from a year earlier. still contested. downside of 0.5%. we are watching south32. results were really underlying estimates there. we are seeing a down soy of 1%. origin energy is another one to watch. outperforming star entertainment. the stock has been performing extremely well.

watch this space when it comes to the probe into the crown. they say they won't be rushing into reviving those. they scrapped that merger proposal with crown resorts. that stock is doing very well after the for your results. don't miss our interviews to flesh out those results later. we will be hearing from the ceos throughout the course of the day. this is bloomberg. ♪

haidi: tencent has a stock warning for investors, brace for more regulatory curbs on china's tech sector. it reported its slowest pace of quarterly revenue growth in more than two years. let's cross over to our chief north asia correspondent. what exactly is tencent saying?

>> really focusing on some areas that investors want to know. how deep and how long are these regulatory crackdown going to last? the results, we knew what the results were going to be. dampened by this regulatory crackdown on the revenue side. in gaming and obviously online advertising spending because of the crackdown on educational technology. online tutoring. really, everybody wanted to know if they could give any guidance on the regulatory framework and what's coming down the pike. here's what he >> had to say last night. there will be short term uncertainties and a lot of regulations that will be coming. it should be expected. the regulation has been quite loose over an industry like the internet, considering its size

and importance. >> we heard from the government in china that this regulatory crackdown could last upwards of five years. tencent saying in the short-term, there could be more regulatory curbs coming down the pike. i will run through it. revenue grew at the slowest pace in more than two years. the crackdown weighing on gaming and advertising. net income did beat expectations , in part because of a gain of over 20 billion you want from increased valuations of investments including from overseas. interestingly, the two areas that we will focus on our in music, all kinds of things. there's an overarching regulatory environment on antitrust and anti-competitive behaviors with we chat and the like. i want to focus on gaming because the moral crusade the government is on. they want regulators to limit total game time for children. it's a complicated issue but doable.

in online ad revenue, likely to get a further hit due to reduced spending from those tech companies. lots to impact. haidi: very interesting timing. what do we know? stephen: if you take a step back, we knew that baidu is repositioning itself. it wants to be a major player in artificial intelligence and it's investing heavily in the cloud and those services. tapping the global bond market with this offering. we are hearing from sources, upwards of $1 billion bond sale. it would be the first major offering by a chinese tech firm since beijing escalated its crackdown on the sector. if you look at the most recent tech offering, bond offering in july, 1.2 billion. $7 billion in demand. there is demand for such offerings. not only domestically but globally.

again, baidu is spending and needs to raise money for its ai ambitions. shery: stephen engle they in hong kong. bonds are recovering after a rescue package was unveiled on wednesday. we recap the months of speculation over the company would have to be sold. let's bring in rebecca williams for the latest. what is today's episode in the drama? rebecca: confirmation of the story bloomberg had yesterday about this plan. we have more detail now. effectively, we will see the state bailout a group of strategic investors who are going to inject capital and

shift the shareholding structure. they are not going to inflict losses on bondholders. a little bit of clarity that has emerged overnight. of course, it's intending to post record losses. $15.9 billion of losses toward the end of the month. shery: what does this mean for offshore bond investors? rebecca: absolutely. that's really what investors are looking at. they have said they are not going to allow any losses. they've been paying their bonds on time. however, that 7.7 billion capitalization cannot be used to pay off those maturing debts. the focus of bondholders will be continuing to see whether or not they can continue to focus on its core business and whether he can raise cash from selling its assets to service that debt.

longer-term, bondholders and investors are looking for clarity over whether they will be able to restore enough investor confidence that they can return to the capital market and get fresh funding. shery: of course, we are now hearing about koran receiving government backing from china. this is not necessarily the case in other parts of the credit market. we've seen it with the likes of property developers continuing to struggle. it's really not surprising that when it comes to that sector, china credit investors are demanding higher reports on property developer debt. this as real estate firms are propelling a record wave of chinese corporate bonds this year. haidi: credit risk polarization is what we are hearing at the moment. they are facing the dilemma of reducing leverage where we are

seeing tighter liquidity conditions. that means there's a high degree of risk to these companies that have weaker financial profiles. we are seeing that start to play out in terms of investors demanding for the risk that they are taking. pushing back against the notion that china is on investable. the ceo says that he is still holding large positions in china tech despite the regulatory crackdown. instead, he's flagging inflation shock as the biggest risk in the first half. >> we are in a situation where the bond yields are extremely low. the stock market is extremely high. therefore, any main change in inflation will hit both parts. this time, both can move in the same direction. >> do you have to do things

differently now with that in mind? >> we are a long-term investor. we are so big, it is difficult to move around. in a way, we are also dutiful for counterparties. given that we have 3200 years, we will probably have to see through it. >> is not what you own, it's what you choose not to own. what are you choosing not to own right now and why? >> we are quite in that scenario in the way we run our portfolio. we also have various things we don't own for esg reasons. we started to sell down various things already back in 2012. that's been a good strategy. that is something we will increase going forward. quote -- >> what does that mean for china pms? do you have to reduce that because of the? esg concerns? >> now.

it's one of the biggest markets in the world. it has done really well for us. we continue to be an investor there. >> some people call it under investable -- on investable. do you think it is and why? >> i think it is. a lot of great companies there. good technology companies there. we have large positions there. we believe in a lot of those business models. >> the regulatory shift can happen overnight. you have to have some predictable regulation there. some kind of certainty looking forward several years. do you have that with china? >> i think we have uncertainty l over the place. we have uncertainty in all markets. it's the nature of it. it's different in china. that's life as an investor. >> do you think things are changing more accurately -- rapidly? >> i think so.

things are changing quickly. we have people on the ground. we have good dm's looking at these things. we will make necessary adjustments in the portfolio. shery: plenty more to come on daybreak asia. this is bloomberg. ♪

haidi: nissan debuted the latest iteration of its iconic car in new york. the first refresh in over a decade. the ceo says they will continue to bolster electrification and core u.s. products. he says the covid-19 outbreak in the global trip shortage continue to pose a challenge. nvidia's results and forecast warns that the bid to repair is taking longer than expected. revenue will be $6.8 billion. robinhood slumps as much as 8% in after-hours trading after

warning that seasonal headwinds will result in lower third-quarter revenue. it reported revenue of $565 million in the second quarter. crypto trading revenues soaring more than 4500%. lots more to come. this is bloomberg. in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.

>> this is daybreak: asia. minutes from the july fomc meeting show wide agreement among federal reserve officials that they attained their inflation goal, but still need to make progress on their employment mandate. on the timeline of when to reduce bond buying, most participants judged it could be appropriate to reduce the pace of asset purchases this year. the biden administration will start offering booster shots on september 20 to all vaccinated u.s. adults.

the move is a massive extension to a program previously limited to those with weakened immune systems. biden says the u.s. has prepared to deal with the delta threat and that vaccinations are the best protection along with masks. singapore will offer vaccinations to short-term visa passholders. the ministry of health announced the decision saying the ability for expansion includes special travelers including those on work permits. vaccinations will be made available for short-term passholders who have been in singapore for at least 60 days continuously. the extradition hearing for the huawei cfo is over, ending more than two years of proceedings that triggered an unprecedented geopolitical scuffle between canada, the u.s., and china. a decision from the canadian judge on whether or not to send her to the u.s. to face charges

of criminal fraud is still likely months away. china says the case is politically motivated. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> chinese companies planning to go public is an the u.s. are facing increasingly detailed questions from the fcc with most of the focus being on offshore corporate structures joining us is our asia tech editor. we know the noose is tightening in terms of transparency and disclosure u.s. authorities are wanting. what do we see with questions being added? >> i think -- it is not great news for the u.s.-china ipo business. on the one hand, you see this as a positive, that the fcc is willing to engage on this topic.

the issue of -- the sec is willing to engage on this topic on a topic that has never invited a lot of scrutiny from china or the u.s.. on the other hand there is a lot of uncertainty over how this is going to go. you have heard kinsler saying he has asked his people to hit pause for now on chinese ipos while they work out not just the structure, but also chinese political risks. that is a big unknown. >> what are we expecting to be the final outcome of these back and forth's between the two sides? >> a lot of people want to know the answer to that question. quite apart from sec scrutiny, there is scrutiny in china. the regulatory agencies asking

questions about overseas ipos and potential national security risks those could entail. >> xi jinping's regulations on multiple sectors from gaming to tutoring and karaoke have created an image of an ideal young person that is lying flat. what does lying flat mean here? >> this is the term that has taken off in chinese social media. really a reaction to the constant pressure of the work culture, diminishing returns, the constant need to study and work just to make it. we see crackdowns recently for example on the afterschool tutoring industry, also better packages for delivery people, trying to address those pressures.

the other side of this is what the government sees as life industries, things like online gaming, things like celebrity chasing, which has one investor described it is china's tiger mom approach to communicating and dealing with its youth. >> it is interesting because it is not just about academic educational professional skills. it is moral education as well. what are the skills beijing is prioritizing? >> that's right. the bigger dilemma is in education. everyone -- or most people really want to be these white-collar workers, but the economy needs people in manufacturing, needs people in the services industry, whether it's childcare or age care. there is this dilemma because we have seen in the summer when

china tried to merge vocational schools with universities, there was a lot of backlash and protest. this is an area where it seems like there will be more growing pains. >> what are the sectors investors should be watching out for? >> we have mentioned, investors are saying china is asking for moderation, not a complete clampdown. it does not want the sectors to disappear altogether. we already had people accepting the risk-reward their. -- there. whether you call it fictitious economy versus real, the german model, the american model, they are hard set manufacturing versus platform economies as investors try to gauge what china's ambitions for its future will be. >> air china government reporter with the latest.

here is our check of the commodity space. beijing under continuous pressure after wti falling to the latest since may given the rise in u.s. fuel inventories. this coming at a time when we continue to see the downside pressure on copper as well. we did manage to hang onto gains, adding 0.1%, but this as there are continued worries about covid-19. iron ore extending declines in the chinese session. we have seen the lowest since november as bhp warned it sees an increasing likelihood of cuts to china steel output. sugar also rising to a four-year high as we continue to see dry weather in brazil reducing yields. >> up next we are going to get

that focus back on tencent. looking ahead to the hong kong open after the company warned investors of more regulatory curbs. this is bloomberg. ♪

>> equity markets falling across asia.

let's turn to the latest action. >> caution across asset classes. energy stocks are tracking the drop we are seeing, brent below $68 for the first time since may. wti below $65, the longest losing streak since february 2020. industrial metals under pressure. this amid the outlook for more industry groups -- industry curbs in china. policy will be announced by beijing in september. we are seeing bhp shares weighing on the asx 200. the aussie dollar steady ahead of jobs data. the korean won laid low this morning by 0.3%. they see the korean won unemployment being stretched. i want to highlight what's going

on with bonds in southeast asia. malaysia bonds face a worsening outlook. ringgit notes lagging. this amid uncertainty over malaysia fiscal position exacerbated by the political risk. we are seeing indonesia pledging to stick to its fiscal deficit target. this thursday we will get a policy decision from indonesia's central bank. >> investors will be watching tencent. more regulatory crackdowns on china's tech sector as the chinese tech giant reported the slowest revenue growth in more than two years. the crackdown is likely to continue to pester tencent. when it comes to a company like tencent, can we quantify how much of an impact regulatory

headwinds will have on creating a longer structural slowdown? >> thank you for having me. i think last night's results basically our meeting market expectations. the problem is people are looking beyond the results. i think right now it is difficult to quantify how much more regulatory change is coming. one of the processes people can use is these internet platform companies. one of the concept that has been repeatedly reiterated in the communique from top -- from the top is the negative social impact. some companies, some people do things, it has a negative social

impact on the rest of society. that is going to limit how much return you can generate from being a shareholder. from a regulatory point of view, probably one of the ways to measure is how much higher it is relative to the rest of the market. people would want to look at the return on equity on many of these internet platform companies. it is going to decline as long as the regulatory uncertainty. >> i want to look at this chart showing the deviation of stock-price trading compared to analyst estimates. the gap keeps widening. the gap between them has been close to the nearest, the widest i should say, ever.

if you look at something like this, are there sectors and companies that you can have better transparency and better certainty over what the growth outlook looks like in china? >> i think the analysts have been wrong to be very blunt. they have been refusing to adjust the price target even though the situation has changed dramatically. you look at the tech index, the chinese tech sectors, falling 50% already from the top, even after such a huge correction, valuation is still very high. expectations will be shifting. there is so much uncertainty in the sector that people have to bear if they put money in the sector. i would say the target price has gone down.

the sooner analysts do this, the better. >> but to be fair, if you are an analyst, how do you incorporate that much uncertainty in what happens in china? every other day we get new regulatory headlines. >> i would say if you look at the valuation taken in february. many of these stocks are trading at 80 times, they don't even have earnings. i think there is a huge -- one thing is even if there is a regulatory change, the valuation has correct. >> we saw more relief coming from the credit market. finally some certainty that beijing is stepping in. what do you make of the latest announcements or the exchange filing that the government backed investors will step in to recapitalize the company?

>> we are seeing very large state backed capital going into the sector trying to alleviate the situation. i think it is one of the biggest losses in chinese company history. i would say who are wrong -- h uarong, most people are looking at it as a done deal. they are rolling it out. i would say most people are willing to look past huarong, but the bigger concern is the ever grand -- evergrande situation. >> if you are an investor in china how do you make the decision of where to put your hopes when you see these large

corporations being bailed out and others not, like evergrande? >> it is difficult to speculate. we have seen some -- many of them got bailed out. state capital buying some of the problematic portfolio and also taking part in the rescue. maintain stability when going through restructuring. it is a very challenging task. in china, it is happening, but from a longer-term perspective, it is creating issues in the

system. from a country development point of view, if you limit the monopolistic power of many of the platform companies, it should make room for the smaller business to grow. even though there is near-term uncertainty, the long-term perspective -- >> does that mean you start looking at forecasts? i wonder how much of your time you are focusing on what you hear from the committee, what you hear from president xi, what the implications of something all-encompassing like prosperity -- >> that's right. i would say for the longest time you have been hearing the chinese consumption story. we engineered the chinese economy toward a consumer-based economy.

you are seeing consumption limited at 80% of the economy. very substantial. it is not dissimilar from what you can see in the u.s. and other western countries. going forward, to find tune the economic structure, the manufacturing base has to grow. obviously the world is decoupling and having a better, more intelligent facility better suited to the new environment to meet the local demand. on the one hand, we are ramping up production to meet growing demand. the same time, we are meeting -- it is a goal that is not going

to be achieved in the near term. the longer-term perspective -- >> if they want to close the wealth gap they are going to need a big overhaul of the tax code. property taxes is just one element. do you expect more on that front? >> i would say so. yesterday if you look at the communique, they are emphasizing first-order and second-order redistribution. that is more about changing the tax codes. right now if you are a high income earner in china even though the tax rate is very high , there are many ways you can evade. as a result, there is a disparity between the rich and the poor. also property is just one of the problems plaguing the chinese

economy. now that the local government -- they need new sources of revenue to fund operations. property tax has been discussed for decades. i would like to see it introduced sooner rather than later. >> thank you for joining us. head of research and chief strategist at bocom international. you can learn more on the bloomberg technology channel on youtube. next we will get a preview of the rate decision. ♪

>> bank indonesia meets today as lockdown threatens its recovery. kathleen, walk us through the decision today. >> it is another one of these situations where a central bank in asia is faced with an economy getting hit by lockdowns, not in a position to start cutting rates as many people would like it to do. and actually, let's start looking at this chart showing you the bloomberg consensus is looking for this 70 repo rate to

say it -- stay at 3.3%. you can see there was aggressive rate cutting in 2020. the head of bank indonesia told bloomberg television that he does not expect more rate cuts. he wants to let the low interest rates work their way through the economy. if anything he is looking for a rate hike. what people are looking for is a dovish hold. you look at all the factors that could open the door to a rate cut, inflation, if you pull up the list of things, it is below the 2% to 4% target range. bank indonesia has had to cut its gdp forecast to 3.8%. it was previously 4.1% to 5.1%. the economy is still under pressure. covid deaths are climbing. lockdowns have been extended through august 23. it's going to be a seven-week lockdown, that is a big weight on the economy.

why can't they cut? because of the currency. the rupiah has come down quite a bit. the worries about the economy, and another thing that is happening, as barclays bank has pointed out, if the fed is going to taper, that could induce more capital outflows. for many many reasons, they are going to have a dovish hold. we will see if they give us any more hints about policy. >> kathleen hays with a preview. you can turn to your bloomberg for more on bank indonesia's rate decision. let's take a look at the stocks we are watching over the course of the trading day. >> we are watching chinese tutoring stocks after material impact to their businesses from the regulatory changes.

we are seeing oriental -- new oriental adrs falling. and chinese ride-hailing related firms. switching out the board for a quick check of how we are seeing malaysian assets. we are seeing the ringgit hold below that 4.24 level. the political crisis continues. we have learned lawmakers who back -- have been called to attend this thursday as we wait to see. >> we have big interviews. we will be speaking to the ceos of two companies.

we will also be hearing from goldman sachs. more reaction to tencent's results. also the market outlooks of the beijing crackdown. that is it from daybreak: asia. bloomberg markets "china open" is next. ♪