haidi: welcome to daybreak australia. sophie: we are counting down to asia's market open. shery: good evening from bloomberg world headquarters in new york. u.s. stocks hit a record high in strong earnings in a rally in

commodity prices outweighed covid concerns. haidi: president biden's multitrillion dollar blueprint passes the house. shery: the sec will demand all chinese companies list in the u.s. reveal more on investor risk. this is the picture across wall street -- after the s&p 500 finished again at a record high. we had energy, consumer, discretion are he and material stocks leading the gains. the philadelphia semiconductor index also gained round but trailed the nasdaq and s&p 500. interesting, that move we've seen given the global chip shortage, really affecting industries worldwide. the dollar fell against most g10

currency -- currencies. wti continues its gains after the biggest jump in five months on optimism chinese demand will improve, given they've managed to stamp out the virus flareups across the country. take a look at chinese adrs because they gained grounds for a third consecutive sessions on news from tencent that left kathy wood to jump back into the market. dark investment buying into those adrs on monday. this is the china index, falling to the largest inverse correlation with global stocks on record. ratio of underperformance at a level we haven't seen since 2016. perhaps this keep valuations helping, offsetting concerns from the sec demanding enhanced disclosures. we did not hear more details today on consequences if these companies did not disclose or

how long the ipo pause would last, but we will have more on that discussion in a few minutes. it was really about the optimism in the markets, especially after the house of representatives adopted the 3.5 trillion dollar budget resolution. there was a lot of political maneuvering from speaker pelosi but she managed to get the progressives and moderate democrats on board. we are looking to the 550 billion dollar infrastructure till for the vote to be set up. haidi: so much being driven by the economic optimism as well as the extraordinary amount of monetary policy stimulus in the system. that has sent hedge funds, as of a year ago, completely out of vogue. we had seen arise when it comes to hedge funds but that seems to be turning because it seems like they are hard again. according to that data tracker,

we seen a record -- shery: it's a lot of money. haidi: they've stopped accepting new money. essentially closing up shop to new money because there had been so much demand. shery: we are watching what happens on the geopolitical front because president biden is sticking to his deadline of august 31 to have afghanistan it evacuated. president biden saying they are on pace to finish the evacuation, rebuffing calls from g-7 allies to extend the timeline. vice president, harris in southeast asia right now. she had to field a lot of questions about the afghanistan situation. she had to leave singapore more than three hours late because of concerns about an anomalous health incident in hanoi. that was the next destination. this seems to be code for the havana syndrome, when u.s.

officials or diplomats have heard strange sounds and have fallen ill. we will be watching her agenda in vietnam as well. haidi: havana syndrome being reported in places like cuba. here in asia, looking to what happens when it comes to kiwi assets because we had the interesting comments that the holder last week was not because of economic fundamentals. they were ready to move, but they were concerned the communication would not be right, given that it was rolled out on the same day as the national lockdown. if you look at rate spot markets, it looks like pricing is above 70%. let's take a look at how we are sitting up in terms of how this fits into the markets context. sophie is in hong kong and we are watching for further moves in the kiwi. sophie: given that the october meeting is looking alive, the

kiwi dollar did get higher, past 70 against the greenback as we see concerns around slowing chinese growth. we are seeing the nsf d trading at its lowest since april to 20 against the aussie dollar. there is support for the a ud going into the year end as the vaccination campaign ramps up. that will provide a for the australian currency. basie 78 by years end. we have the currency holding above 72 after the bounce from the commodities left, iron ore leading the base metals as the notion of a delayed recovery as -- not a derailed recovery. we could be gunning for a third day after the best today's session it for asian stocks as

we saw bargain-hunting for chinese tech names. today, we get more earnings from china. that may move the dial. the are going to be watching reaction to how asia will react to the u.s. passing the infrastructure or bill and the budget. shery: the u.s. house of representatives adopting that 3.5 trillion dollar budget resolution, pushing forward a core component of president biden's economic agenda. courtney rosen joins us with the latest. there was a lot of political maneuvering. tell us what happened and how this sets up the infrastructure proposal as well. courtney: president biden has two proposals for congress -- this $3.5 trillion budget

blueprint with investments in education and childcare. that he has a separate infrastructure bill that touches roads and bridges. today's speaker, -- today, speaker nancy pelosi was balancing the needs and wants of progressives and moderates who are jostling over whether they will vote for both or 41 and the speaker needs all their votes to pass. today, the house agreed to pass 3.5 trillion dollar budget blueprint and agreed to vote on a separate infrastructure bill by the end of september. haidi: what are the next steps we will be watching out for? courtney: it's all about the details now. committees on capitol hill are going to need to fill in what exactly will go into that $3.5 trillion budget blueprint. the roads and bridges part is going to be parked in the house of representatives with a commitment to pass the end of september. that is on hold for now and it

is all in the details of what's going to be in the budget. haidi: courtney rosen with the latest. president biden has rebuffed calls from international allies and members of congress to keep u.s. troops in afghanistan past the august 31 deadline. he says the u.s. is confident it will complete evacuations by then. let's get the latest from dan slightly. the vice president fielding these questions and criticism over afghanistan during her asia trip. the president is speaking -- did we get any revelations or indication that this -- that there could be tweaks to this plan? dan: i think the key revelation with president biden saying he's developing contingency options with his cabinet should there be a need to remain pass the august 31 deadline to get american citizens and afghan allies out of afghanistan. he said things are on track,

looking good for the august 31 deadline, although there are reports from the ground that there is a lot of confusion and chaos still at the airport in terms of getting folks in and on two flights and out of the country. the phrase he used was contingency plan and i think that something to keep because he's faced calls from the g7 countries and democrats and republicans to extend past that august 31 deadline. shery: it is coming at a time when we are hearing from the world bank that they are pausing disbursement in afghanistan. vice president kamala harris has had to end off a lot of questions on afghanistan, concerns that perhaps this is overshadowing her trip. but she did manage to get the message out about the dangers of a rising china. what did she say? dan: in a perfect world, if everything was going according to the playbook, that the biden

administration laid out when they came to office, this would be the marquee event of august, the vice president's trip to singapore and vietnam to showcase this idea that the u.s. is back on the world stage, working with allies to counter a rising china as members of the administration have termed it. they want to do this by shoring up these alliances, showing the flag in many respects in the pacific region and saying we are here, and we are someone who can be relied on. certainly with the covid 19 pandemic, there's been a focus on supply chains. that was a big focus of her trip, the need and importance of supply chains sourced in that region and how the u.s. is working with those countries and companies that are there. shery: dan flatley there. we have more on the u.s. china

rivalry. the sec will demand all chinese companies currently trading in the u.s. better inform investors about political and regulatory risks. ben bain spoke exclusively to the sec chair. what did you hear? ben: these were his most in-depth comments yet about how he sees this long festering problem for u.s. regulators. going back almost two decades, u.s. officials have been frustrated by their inability to inspect the workpapers and financial audits of chinese and hong kong-based companies that trade here in the united states. what we heard from the chair today was in addition to a pause he has placed on new chinese ipos, the sec has said it will basically be in place until united states regular start to see more information about the

structures of chinese companies and shell companies they use to list in the united states. there's also going to be a demand for further disclosures from the companies already trading in new york. more than 200 firms already list shares in the united states from china and, what we heard from the chair today was the increased disclosure he's demanding from chinese companies that want to raise new money here is also going to apply to companies that already trade here. it could have some repercussions , lots of things they could do. he declined to say what the penalty would be, at the indication was we should expect to see more disclosures being demanded if we go into annual reporting year, the sec will be looking for additional information. haidi: not elaborating on what

the stakes are if there are -- if there is noncompliance, but we know about the tools that are available? ben: in terms of the stakes, i think the stakes are already quite high. in addition to disclosing further about the regulatory and political risks in china that the sec wants these companies to disclose in their filings, there's already a new law in the united states that gives companies three years to open their audit papers to u.s. inspectors or face delisting from u.s. exchanges. that's already in place and the sec and chair gensler reiterated that timeframe is what we are looking at. come 2024, we could be looking at serious consequences. haidi: ben bain, who covers the sec at bloomberg. let's key to vonnie quinn who has the first word headlines. vonnie: any report from the cdc

says efficacy of covid-19 vaccines on front-line workers dropped to 66% from 91% after the delta variant became dominant. researchers say the sustained two thirds reduction in risk underlines the benefits of vaccinations. findings echo earlier evidence from israel and the u.k. suggesting covid jabs lose some potency over time. the u.s. top infectious disease expert says a third dearth -- third dose of pfizer or moderna vaccine could lead to protection against covid-19. it's entirely conceivable a third shot may allow for prolonged protection, adding that means booster shots may not be needed indefinitely. singapore's government says migrant workers who recently tested positive for the coronavirus in a dormitory were all fully vaccinated. all 62 individuals were either a

symptomatically or had mild symptoms. they have been moved to a health care facility for further treatment. rolling stones drummer, charlie watts, has died, aged 80. the musician known for defining his drumming style as subtle with a swing and solid groove had been a member of the iconic rock group since 1963. earlier this month, it was announced he would missed the that she would miss the bands forthcoming tour. a statement from his publicist said he'd died in a london hospital surrounded by family. 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. haidi: we are getting out by now pay later, reporting income of $166.3 million with final dividends per share not being issued. we are seeing the four-year

pre-item at 38.7 million, clearly taking a beat hit there. despite cell estimates being higher than initially guided. they saw growth profit rising almost 100%. the company very much and focus after it inked a deal with square 429 billion dollars. we will be hearing more from the ceo who will be joining us. we will be having that conversation on bloomberg markets. still ahead, the dollar slips as commodities extend their rallies. why jp morgan is staying long the greenback going into jackson hole. we -- the next several months could prove to be challenging for investors. this is bloomberg. ♪

shery: u.s. futures muted at the moment after the s&p 500 finished at another record high. this chart on the bloomberg showing the long-term trend on the benchmark after bouncing back from the pandemic last year. our next guest says this fall and winter could be challenging for investors. julie, great to have you with this. what would your strategy be going into the latter half? julie: the importance of buying quality names is critical because right now we have conflicting signs on where the economy is going. it's possible the delta variant is going to forestall an economic recovery, but it's also possible businesses do a great job mandating vaccines and we get more widespread usage of those and the economy is ok.

in both circumstances, you want businesses that can weather a storm, but can also participate in a positive, healthy economy. we have a few businesses we like and that's the type of business we are focused on. shery: where would you find those companies? we had the opening trade with cyclical names but when we talk about quality, balance sheets matter that has to do with technology and growth names. julie: the level of digital transformation is still in front of us. we think a lot of it has come forward because them as consumers, we see a lot of the most modern technology, but many businesses like insurance or restaurants or the government sector still have a long way to go in terms of being more modern and updated, being on the cloud architecture. there are several businesses we like that serve that space and, even if we have a challenging economy thanks to covid, they

can continue to do well, they have high levels of returning revenue and clean balance sheets. haidi: talk us through some of the names you are constructive on. julie: i like the company ava lara. they do tax software for small and medium-sized businesses. when you are so bidding taxes for state and local governments, those are byzantine laws that are not extremely specific about the tax rate that you use. you get a bagel in new york and eat it there, that's one tax rate but if you take it to go, that's another tax rate and that's confusing for a small business. they take the burden off and file taxes for them. the opportunity to extend beyond remittance taxes is there for a 1099, etc.. i think this company has a lot

of opportunity for them. shery: we continue to see tech being the preferential trade. is there a harbinger of risk there? julie: the latest reports out of venture capital is that valuations are starting to get hot all across the spectrum, from the earliest stage to the latest stage and a lot of that is venture capitalists for seeing hughes -- huge spac's that have raised money that have to find something to buy. that makes them feel like they have to buy something, anything, and qualities not going to matter quite as much. so those rations have come up and that has important implications for public sector valuations and there is risk to that. it could be a bubble that creates itself and caves through. that's something i'm paying attention to, keeping an eye on valuation and seeing how spac's influence those.

haidi: always great to have you with us. we do want to make a clarification -- after pay reported a net loss for the full year of 156.3 million. there were hopes they would report a profit for the first time in fiscal 2021, but they haven't done that, coming through with a net loss of 150 $6.3 million for the full year fiscal 2021. lots more to come on daybreak australia. this is bloomberg. ♪

haidi: a quick check of the latest business flash headline -- goldman sachs is requiring employees to wear masks to enter

its u.s. offices. the mask mandate starts on wednesday and people who are not fully vaccinated will have to work from home. all six u.s. banking giants have imposed measures to require employees to get shots or to wear masks inside buildings. mitsubishi is joining its rivals of increasing pay for junior bankers in the u.s. as competition for entry-level work heats up. japan's biggest bank says pay hikes are making it harder to recruit new staff. several wall street banks raised entry-level pay after members complained about really was work hours. sources tell us the bank is waiting for regulatory approval, citibank said they were more interested in the crypto space but there were questions about regulatory framework. lots more to come on "daybreak australia." this is bloomberg. ♪

shery: we have broad risk on sentiment across the u.s. markets. chinese adrs rallied, nasdaq seeing the best day, most month. very cheap valuations against global stocks. and underperformance, levels we have not seen since 2016. we have the tencent buyback boosting sentiment, tencent

rallying about 9% in the new york session. another company rallying despite canceling a major expansion because of privacy concerns. baidu gaining almost a percent, while jd.com is still gaining after hours. this being helped by the fact that arc's cathie wood is saying she is more optimistic than pessimistic in the long run. wood spoke to bloomberg about what has changed. >> we have been pulling out of china. we started last november, after the debacle around the amped group -- ant group ipo and banishment of jack ma.

we saw signs that the government was going to get tough on companies. companies which were more than unicorns, they had exploded onto the scene, and have become so powerful, as had their leaders, that they almost seemed to be threatening the government. at least that seems to be our take on the government's response. we were a bit cautious, pulled away. our flagship fund moved out of most chinese stocks, i think we were out probably late april, late may. you never know 100% of the time. i think the online education, nationalization there was a real valuation killer for the market.

i think the market will be under pressure from a valuation point of view for a long time, because that sort of thing was so unexpected. even from those of us who saw the government tightening its grip on the country. what we have done, we did after this last bloodbath in the stocks, we do try and sort through, which companies are doing things the government likes? we are seeing tier two, tier four cities. logistics, groceries? he saw us fight jd.com -- you saw us by jd.com. that has probably been our biggest purchase, as well as another for the same reason. if you were to look at what we

were doing in those portfolios, we were swapping them out of other names that we think are going to be in harm's way, or certainly under government pressure. like alibaba, for example. >> in terms of the recent crackdowns, does longer-term make you more optimistic or pessimistic? what is the call? you are a longer-term investor. cathie: we know that china wants to be number one in the world, economically certainly, in one of the ways they want to do it is with innovation, technology. certainly the manufacturing side, semiconductors being one of the most important areas. they have not gotten it right. i have watch them invest since

the early 1990's, where they brought in a lot of taiwan talent, and they just have not been able to crack the code. haidi: cathie wood. let's get the first word news. vonnie: how's lawmakers voted 220-212 on that $3.5 trillion economic repent. nancy pelosi struck a deal to end the standoff. the plan moves to a reconciliation process with the house and senate will vote on. a final vote on a separate $550 billion infrastructure bill will follow. president biden says the u.s. military is on pace to complete the evacuation of thousands of people by august 31, despite what he described as a tenuous situation. biden earlier rebuffed g7 calls

to extend the deadline for trips to remain. -- troops to remain. he also warned there is a risk of a breakdown in the country, and the world will judge the taliban by its actions. kamala harris left singapore more than three hours late en route to vietnam. the state department blamed the delay on what it calls an incident in hanoi. the agency has used that phrase to describe instances of so-called havana syndrome. the white house says it was not a confirmed case. the sec is demanding more than 250 chinese companies trading in the united states to inform investors about political and regulatory risks, and expansion of a mandate imposed last month seeking u.s. ipos, and the latest response to beijing's ongoing clampdown on private industry. the sec chair says he wants to

see the disclosures in corporate annual reports. 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: two months after goldman sachs led wall street's return to the office, it is taking pages from the pandemic playbook of rivals, requiring masks and proof of vaccination. joining us now is the san francisco bureau chief. more broadly, what is the response given the fda approval for the pfizer shot? reporter: the fda approval is expected to pave the way for more vaccine mandates as employers feel more comfortable, composing this on their employees. the idea that having full approval will make people who were on the fence do so.

goldman sachs comes in today, they have had workers back for two months, the more aggressive companies in bringing back workers. they are taking a big step of requiring vaccines since the announcement. you also have cvs say clinical and corporate workers have to get vaccines. chevron requiring some workers in the gulf of mexico. starting to see more vaccines come into play, and i think in the coming days, you will see more companies jumping. haidi: at the same time, we are seeing the waning effectiveness against the delta variant. kara: there is a cdc report that showed a survey of front-line workers, that the vaccines are 65% effective against the delta variant.

some concerns there about the diminished effectiveness. the cdc is expected to use this data for booster shots for vaccines. it backs up some of the studies out of israel. at the same time, it is two thirds effective, some good news there. haidi: our san francisco bureau chief. it was not the economic risks posed by the lockdown that cause the central bank suddenly to not raise rates, that was an issue of communication. our economics and policy editor is here with mark. -- here with more. reporter: terrific interview. the assistant governor, this is a hard level official -- high

level official, he had plenty of time. he said basically it would have been difficult to explain what we were doing on the very day that the country was going into lockdowns, because of the sudden spread, for return of the virus. here is an important quote. " we put out a document that would have easily supported the cash trade, less about covid, more about the timing of policy moves." was the 18th of august the right day? i remember when the news was breaking, i was in the market show. i said it looks like they had a statement already written, and because lockdowns came, they had to add some sentences. bottom line, the words leave no doubt that they are ready to start the rate hike cycle at the next meeting on october 6, and

he said it won't be, the decision won't be tightly linked to the virus, the lockdowns. and he said a 50 basis point rate hike was on the table. they are definitely ready to start moving stimulus. he reinforced what we were told last week in our interview, when asked a few different questions, he made it clear october 6 is a live meeting. one more thing, reuters had a story that the chief economist for the rbn said when he was asked, does the covert outbreak in new zealand, the impact on the economy, he said it is not a game changer. clearly, they are in a position. how long the lockdowns last, how far they go, it's not something that will stand in the way.

shery: the rbn usually makes moves in tandem with the bank of korea, right? did you see the household debt number? can they afford not to move? kathleen: another record. debt is chief, their economy is holding up fairly well against the virus. virus cases processed, the vaccine rollout is slow. economists surveyed by bloomberg do see them holding the key rate steady for now at 0.5%. that is a coin toss. everyone is thinking that the governor said last month that on august 26 they would discuss a rate hike. that is why this has the tension and excitement. i think it would be the other

side of the coin, the big surprise would be if they go ahead and hike. shery: i'm actually excited. coming up next, more on the rbn impact on the q. week with a jp -- the kiwi with a jp morgan analyst. this is bloomberg. ♪

>> time for morning calls ahead. focusing on taiwan, which reported a slower pace of industrial activity, still double digit growth. over at morgan stanley, they are saying there is a confluence of factors reiterating the underweight call for taiwan, slowing tech spending, and unsustainable retail trading boom. the bank has downgraded the june 2022 target to 16,000, as well as lowering the growth earnings forecast. we have seen foreign investors dumped taiwanese as well as korean equities, while piling into indian stocks. pulling up the board, australian earnings. focus on a melbourne based

company which focuses on aluminum. shipping disruptions have increased the cost to transport. we have the downgrade to neutral on the outlook for the were dividends, higher and flatter margins. haidi: let's take a look at the broader commodities space, the wti expanding gains. we have ubs joining goldman sachs, expecting prices to rally. talking about the $75 a barrel level, copper has gained ground. this is on supply concerns. plant workers at a copper mine, the largest producer in chile. they rejected the company's latest wage offer. that takes up about 1% of global outlook.

supply concerns being felt in london. in china we saw iron ore leading the gains, yeezy concerns over the economic fallout from the delta variant. there is more optimism that chinese demand will improve given they have been able to suppress the latest virus flareups. overall, industrial commodities led to gains. the caveat right now, bloomberg intelligence saying that taper chatter is painting a grim picture for energy assets. last week, there was speculation about the fed starting to taper. we saw the plan to commodity prices. all of these gains, you have to put them into context. as we head towards jackson hole, more importantly so. haidi: speaking of tapering expectations, that is exactly what is playing out when it comes to the kiwi dollar. tracking the gains we saw overnight.

let's take a look at the latest data, trade balance, export and import numbers from new zealand. trade balance at a deficit of $400 million. the export number, slightly shy of expectations from the previous month. points coming in at an increase from the previous month. this comes on the back of those comments from the assistant governor of the rbn, saying it was not fundamental, it was communications to pause last week when a hike was lively -- widely expected. those expectations building to about 70%. elsewhere, we are seeing commodities as well as commodity links currencies. the fed -- investors awaiting the fed policy guidance at jackson hole. the dollar falling, the kiwi

flirting with the 69 handle. our next guest says he is still bullish when it comes to the greenback. you still have a long dollar strategy in most cases, why? guest: what we have been flagging and morning is this idea of a narrowing dollar, good or optimistic rough situations you have the fear of the fed, we think the fed is underpriced. it will be a sizable move up, and that will help the dollar. on the others of the dollar smile, -- the other side of the dollar smile, the delta variant is still an unknown quantity, how bad it will get. there are concerns about the chinese regulatory crackdown. we have started to see a series

of growth downgrades by our economists, that is spreading to more countries. we have been fighting the risk that you might get a dollar bid risk off. the last two days you have seen the dollar retrade lower, on a week by week basis, the dollar is higher. . of the fed -- fear of the fed and fear of risk off from the delta variant. haidi: has pricing when it comes to jackson hole settled? a disconnect between tapering and a rate hike, maybe it will be the clear-cut affect investors are expecting. guest: i would not get too worked up about the clear-cut message or an announcement of tapering coming at jackson hole. that is not our expectation. our warning in position, is over the next several events, when

the tapering does come, it will come before year end. i think the recent minutes made that clear. when that announcement is made, the market will focus on the next thing. the next thing is lift off in the pace of hikes. this is what is quite extremely underpriced. we think there will be a clear fed catalyst that pushes the dollar higher, especially against low yield cyclically lagging currencies. that may not come friday during jackson hole, but certainly in the coming months. shery: how does it set up the broader currencies, you have to yuan really resilient. guest: i think that is a bit of

a concern. if we do get, especially u.s. rate driven dollar strength, it tends to follow the broad dollar. it might increase concerns that the pboc might allow some dollar strength to be reflected. we are not too optimistic about china, we do not think it is the best candidate for a short against the dollar, but again, i think it is a risk for the broader em asia. haidi: we started a conversation with commodity currencies rallying. what is the outlook with trade starting to roll over? guest: this idea that we have

seen the peak of optimism post reopening, the world is contending with a virus they will not go away permanently. the world is dealing with regulatory regime with china. this idea we have seen peak growth i think will make the whole reflation trade a little choppy are. for that reason, have an recommending risk off hedges, including short kiwi dollar. we think that hedge has played out quite well. shery: great having you on, the latest on the currency space. be sure to tune into bloomberg radio to hear more from the day's big newsmakers, now broadcasting live from our studio in hong kong. listen on the app, radio plus,

or bloombergradio.com. plenty more ahead. stay with us. ♪

haidi: i know it is early, but i gearing up for the labor day holiday. we have some time off in the u.s.. summer barbecue time, eating tons of meat. the packer margins are surging

to levels we have not seen since may of last year. $1000 per head of cattle. restaurant reopening's, more tourism. we may be seeing more profits and regulation. haidi: i hope what is on your plate is australian steak. cattle prices in this country smashing records amid the global shortage. we are seeing the benchmark soaring to the highest ever going back 25 years. we heard from the likes of the burger king parent company, with labor shortages and dislocations, they are seeing be costs. whether you are talking about a fancy ribeye or a burger, it could get a lot more expensive. shery: i have to visit you. [laughter] haidi: we will go out for a

steak dinner. we are taking a look at the market outlook. we will get reactions to the latest sec restrictions on china. plus, bond traders are bracing for jackson hole. our guest tells us how she is positioning for the event. this is bloomberg. ♪

haidi: welcome to daybreak asia. sophie: we are counting down to asia's major market open. shery: our top stories this hour. asian stocks set to track u.s. gains, strong earnings,

commodity rally boost confidence. president biden's