plus, indian indices. as foreign investment surges, we will be speaking with our guest to get his take on what the future holds. >> asian markets swinging between gains and losses despite u.s. counterparts reaching yet another record. investors may not be buying into the story of being able to counter those publications. we had thailand saying the recoverable -- recovery will take log that inspected. we have this being break down -- broken down by financials. companies already listed in the u.s. -- it was being lifted by a third day. rising as much as 5%. we heard from kathy woods,

buying back. she is more optimistic than pepcid -- and pessimistic about china in the long term. new york crude is down .7% but still above $67 per barrel. >> let's get over to the bank. we had various economic statement being -- thailand has been hit harder than neighbors by the pandemic. they said that the thai tourism will be slower than anticipated. this is echoing the words of the finance minister saying that the recovery in the country will be taking longer than projected because of the threat of ongoing covid outbreaks. they still remain a key driver of growth and fiscal position does remain strong at the moment. we are looking had delays taking

longer than projected in recovery in thailand. the bank of thailand says the economic recovery will be one which is k shaped. we have seen a bit of strength lately. we will get more insight from these stock exchanges of thailand. we are watching the focus today on your subscriber. the governor of the bank of thailand also mentioning this. both of them suggesting the recovery for the thai economy is going to be rather more protracted. >> the case shape recovery. he first mentioned that on liver tv. take a look at chinese tech stocks. they are now paring audio gains. james, what is the sentiment like in asia? if you look at where u.s. stocks

ended at a new record, investors here are wavering. >> thank you for having me on the program. it is -- we have to take a step back and the conversation is the same one we always start off with. what is reality looking like moving forward? we have to realize that emerging markets have underperformed very significantly on a day-to-day basis with the sole exception of india which has been a core outperformer. we are turning more cautious on that market going forward. i am curious what your next guest will say on that topic. there is not that much in the price. the question is what is reality looking like? the jp morgan argument is that it is very much a tale of two halves. there is widespread recognition that the first half was too tight. you saw almost 1.5% fiscal drag.

they slow down in government expenditures. you had additional drag from produced rowing at the local government level. i think there is widespread recognition that that was two types for the overall economy. the triple cuts in july was the first indication of that. one interesting thing to watch for china for the second half is government receipts are coming over double what the chinese government has budgeted. they budgeted a percent year-over-year increase. why does that matter? we could start to see a significant push of fund into chinese households which could be very positive for chinese consumption as we look into the second half. that has been a key drag on the overall economy and stock market. it is a saving and shift we are looking at as we look to the second half of this year. >> the pboc is showing a willingness to add stimulus at a time when the fed is beginning to start tapering.

what opportunities do you see emerging from that divergence? >> it is a great question. it falls into the overall theme of china being very much a tale of two halves. this recognition that the first half policy both monetary as well as physical being too tight, your sink monetary statement coming out of the pboc and fiscal statements out of the government that start to support a more optimistic outlook for the second half. in particular encyclicals and infrastructure. in particular in the consumption space as we just discussed as you start to see transfers to chinese households in a very significant way. we think those are exciting activities from a broader investment perspective. we have to recognize emerging markets have significantly underperformed. the key exception has been india. that sets us up for a brighter second have given the u.s. outperformance in the first half.

rishaad: james, we saw the revelatory overhang, the tory moves as well. i am going to ask you this question. has it been a meaningful ideological shift out of beijing? how does that play out for an investor? >> we have seen the chinese commonest party as well as xi jinping talk about this concept of common prosperity for a number of years now. we are starting to see policies put into place to start to bring that to bear within the overall economic setting. to some degree, we would argue some of these policies should not be a surprise. the extent that some of them took the market by surprise. we are seeing that in the share price volatility on a year-to-date basis. i think we are seeing in commentary out of the government as well as share price actions is the market has largely digested at least the current

stage of a tory intervention. you're seeing a bottom form in some of these names. we would suggest that investors continue to focus on the sectors that the government is actively supporting. instead of the platforms, we would be looking at sectors as an example. software-as-a-service, the government is very supportive. investing in line with some of the policy priorities we see coming out of the party is what we think are key priorities for investors. >> people that are running scared, some have described china as becoming un-investable, but people are looking elsewhere , looking at emerging markets. you talk about india, it has outperformed. what does that mean for you? are you becoming more cautious on india? is it that it has run up to far

too fast? james: the embedded first question you asked are the impacts on regional markets off the back of regulatory push in china. one of the key things we would highlight is the significant pickup in investor interest. we have seen that play out in a very significant way. we are continuing to invest in more coverage of those spaces. we think that will be acing it again theme. this will be for the first time in a very structural way. we are very excited about that opportunity from a research perspective. we have recently published research which illustrates the rate of change in india from the

earnings perspective is slowing. we think the same will be true of economic growth. we are turning more cautious on the india market on a relative basis. if the assumption is that the chinese economy will pick up steam, you could start to see rotational trade out of india and into china. rishaad: always a pleasure. they are saying they do have more wiggle room to engage in more fiscal stimulus there. all of that from the bank of thailand. they did say earlier that the recovery for timeline -- talent is being a bit more protracted. this is true for one of the biggest sectors, tourism. let's look at what is happening with the first word news as we go over to new york.

>> the ruling parties of japan and taiwan will hold their first security talks on friday. the concerns about china likely to top the agenda. this is the latest sign of a more coordinated response to beijing's inc. recently -- increasingly assertive actions. lawmakers met in july to discuss greater support for the democratically rhode island. president biden says to compete the evacuation of thousands of people in afghanistan by august 31 despite what he described as a tenuous situation there. biden rebuffed 87 call to extend troops's stay in afghanistan. the white house says vice president kamala harris will raise the issue of beijing on

her visit to vietnam. she also launches southeast asia 's blame for disease control. chinese officials have confirmed the reopening of a key shipping -- shipping terminal. the terminal will resume operations from wednesday. following suspension after covert outbreak. bloomberg news reported that they had -- ships had resumed operation there. global news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. rishaad: we have the new sec chairman taking a not so gentle stance on bitcoin. does his avon see -- agency have

any real bite? >> we are counting down to the open in mumbai. all of that looking on as well. this all on the agency cost channel. more on that later, this is bloomberg. ♪

>> with investor feedback the sec is saying this is a more sure economy. transparency is becoming important now. the gross is not going to cover all sins. it is not as explosive anymore. i actually think it is a very good move. i don't know if china is going to comply.

that means within a three year timeframe, companies here would have to do list. that is a risk and we are thinking about that as well. >> kathy would on the new requirements for chinese listed -- u.s. listed chinese stocks. >> tell us about these chinese companies. they are going to tackle the query. what are these companies now at the moment putting into that filing? what are they changing? >> they are changing them and where they are putting things. now we can see lots of these warnings about the shell structures they used to lift the front page. it is front and center for investors to see. that is the response to the fcc that demanded these disclosures

be put on the front page. they are warning about the risks and china. saying the chinese authorities have implement it a series of policy announcements. >> wondering if this will all help them get approval from the fcc. >> that is the million-dollar question. last night, gary did not give much guidance on that. he is taking a pause on green letting chinese ipos in the u.s. and he did not say how long that will last or if it is the change at all. it is hard to say. you can see them trying to address some of these concerns. lavishly, the risk in china remains high. that is something that the companies don't control. until those policies are more clear, how to tighten the bows on listing abroad, until those

become clear, this is the ceci aaron on the side of caution and not allowing investors to get burned. quite a lot are disclosures. thank you. china's biggest online retailer has posted its first ever net profit as a company. the company joins the likes of tencent and heating xi jinping's called to share the wealth. they reached 850 million. >> we have a veritable avalanche of earnings this week. we are looking at xiao me, petro china, they are inspectors report a loss. later in the week as well, we

have a china southern byd all looking toward the latest set of numbers. that is all away from his earnings we are watching out for in the days ahead. a lot more coming up, this is bloomberg. that is singapore. ♪

rishaad: rishaad:bloomberg markets. they are taking pages from the pandemic playbook of some of the more cautious rivals. we have our asian health care coverage. what is the progress in getting the return to work? there are new variants that are more contagious. apple is one of those companies. they actually delayed things until next year.

>> there has been closing concessions. of the six major u.s. banks, goldman was the most aggressive in terms of same people cannot work from home, traders need to be in the office, the energy of the office is so important to making money. they are now saying the vaccine mandate, the mask mandate, i think that is a really important recognition that delta is changing life in the u.s. for the long-term. it is not a situation where the pandemic is done, let's move on. >> what about in highly vaccinated asian places, -- >> singapore is the other extreme. you have a vaccination rate that is so high. it is reaching 80% at any time now. definitely the highest of any major economy. singapore is moving incredibly slowly. offices are just opening up. one really positive thing we are seeing is singapore move away

from reacting to just numbers. we just had a new outbreak in migrant workers. they said all of these people are vaccinated, being isolated but there is no reason to turn back the clock on any of these restrictions. this must be the restriction. they have moved forward with a cautious reopening. quite that is right. step-by-step, reopening in singapore. thank you. let's do a quick check of the latest news flash headlines. they are proposing a novel finish to the data security as it seeks to go public in the u.s.. they say they will create an independent entity with the sole purpose of safeguarding and protecting customer data. china wants to go public to respect the merger with silvercrest acquisitions. citigroup --

they are winning for revelatory approval to begin training. there were still questions about regulatory framework. they have unveiled the $205 billion expansion. the investment blueprint like samsung biologics after the conglomerate positive act a leader walked out. >> it is that time. we have sophie kamaruddin with us. the daily cases have been rising again. they have come down substantially. this represents this forecast.

>> the governor saying there could be a t-shaped recovery for the economy. looking protracted. a downside risk will prevail. 34 by the end of this quarter. as well as that dovish leaning bank of thailand. more fiscal stimulus from the government. you have four saying a rebound for 32.50 could be in. look at the year-to-date. it is asia's worst performer. >> the rally and into -- the rally in indonesian bonds. more bullish tailwinds.

quite there flipping the board. -- >> they are flipping the board. they are pushing toward 585. that will be enough to understand just how much of an impact that will have on the supply going to the market. they are assessing the situation as well. that reflect the fiscal pressure on the government. moody says -- >> thank you very much indeed. we have the lunch break nearly upon us for shenzhen and shanghai.

a move to the downside overall taking place. we are seeing what is going on there as well. we're are looking at the tech side of things. we have that new oriental education at the start of the trading day. jumping 22%. that is the most on record. that has come down. this is all of the chinese stocks listed in the u.s.. we are not seeing that just yet. >> we are also not seeing the u.s. vice president in hanoi.

she is set to call on the vice president of vietnam. for now, keep it here with us, 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.

>> looking ahead to key stories. when they will hold annual shareholders meeting is. we are expecting broad results. a couple of startups for a new funding round. they are valued at 1.33 billion dollars as well. a euphoric sentiment. rishaad: we have a hot market.

it has made it easier to have these ideas. this is piling into indian stocks here. it is a prevent market. we have a few companies driving this. this is driving a lot more amid this. we have not just the central banks. foreign influence as well. that is added to huge amount of the quiddity. -- liquidity. >> kamala harris is in hanoi. the first u.s. vice president to make a trip there. also on the back of u.s. withdrawal from afghanistan, the u.s. is said to offer vietnam more vaccines based on what

china did just before her arrival. also front and center is building a more resilient supply chain. southeast asian neighbors account for almost 6% of global exports. companies are moving out of china. they you have it. kamala harris making a call on vietnam's vice president there. both ladies having a conversation right now. a relationship that goes back a long time. vietnam is considered a very strong ally of the u.s.. >> we mentioned supply chains. that is one of the reasons we need to get these producing. just 1.9% of vietnam's population has been fully vaccinated. the vice president will be offered vietnam assistance

industry eating the vaccine. that should help to bolster this relationship as well. that is closer in recent years in the face of china's diplomacy. we will move to commodities. we have oil dipping. one of the biggest two-day gain since november taking place. we have covid clouding the demand outlook. the question now is the next target for wti oil. $60 or $80. pretty impressive rebounds so far. >> indeed. i think this is a spectacular rebound in the price of oil. especially considering that oil has run into a lot of problems.

the spread of the delta variant first of all. we are seeing positive signs emerging, especially out of china. the spread of the delta variant is offering some continued recovering on the demand side. that is one big part of the rebound. also, if you look at oil in volatilities, you can see it is pretty much stable. it is lower, especially can to -- compared to the levels seen in april of last year and later last year as well.

all of these have been playing a role. >> it is a question of whether it is sustainable or not. one of the key factors coming out for investors to look out for would be what? >> that is a good question. we have events coming up in the near term. we have the jackson hole symposium. that will set the tone. oil has been broad. what the fed would say about the tapering or any sort of hint about tapering timelines. there would have some impact on risk assets.

oil going forward as well. next week we have a meeting on the first. the key question is whether opec and its allies will adjust to the current -- starting this month, they have been adding some extra. we will be focusing on the next step. christlike get -- let's get to the latest with the first word news with vonnie quinn in new york. >> house lawmakers voted 220-212 on the economic blueprints. nancy pelosi and moderate democrats struck a deal.

the plan now moves through a reconciliation process which the house and senate will vote on. a final vote on a separate info structure built will follow september 27. the new zealand central bank decided not to raise interest rates last week because of communication challenges rather than economic risks. the assistant government told bloomberg it would be tough to split a rate hike on the day the country entered a lockdown. the fcc is committing more than 250 chinese companies trading in the u.s. to inform investors about their political and regular tory risks. it is an extension of the mandate first imposed last month on china-based firms seeking u.s. ipos. it is the latest response to beijing's ongoing countdown on private industries. gary says he wants to see the

disclosures incorporate annual reports. charlie watts has died. the drummer of the rolling stones. he was 80. he defined his roman style as subtle but with a swing and solid group. he had been a member of the iconic rock group since 1963. it was announced that he died in a london hospital sword about family. powered by more than 27 hundred journalists and analysts in over 120 countries. i am vonnie quinn, this is bloomberg. >> we want to take our viewers back to hanoi. kamala harris is making a visit. she has met with -- she has met with the vice president of vietnam. she will hold a meeting just a little later. we are waiting for that to happen. we are also expecting her to be

talking about covid-19 vaccines, supply chain issues as the pandemic spreads into the economy and comes to singapore. she reaffirmed the u.s. commitment to the board of regents. this is the coo of the business council and former u.s. vested her to get on. >> singapore punches above its weight in the region. the kind of arrangement that have been made between the united states and singapore and the strips adjust what is possible. whites what our businesses tell you about what they want to see in terms of the u.s. relationship? >> they have to listen to what the nations want. they want to recover from covid and then they want to move beyond emergency response to a more extended recovery and that means opening back up. that is why discussions about

supply chains and infrastructure, a digital economy and then long-term collaboration on health and climate change, that is why these discussions are so critical. it is really great that she is carrying out these discussions at this time. >> what sort of difference has the change in u.s. administration from president trump to president biden made for businesses having relations between the u.s. and other nations? does that affect businesses? >> business was going pretty well in most sectors during the last administration and it continues to do well in this administration. southeast asia is rich with opportunity. there are 660 2 million people. there is a gdp of 3.2 trillion. it is the fastest going digital economy in the world. 400 million people already online and many more coming on each day.

u.s. businesses and other businesses from other parts of the world see huge opportunity for growth. i am really glad that this is not just focused on security but also security is really more about ships and planes. it is about ties between nations and what the vice president is doing is cementing those ties in multiple areas on her two stops on her trip. >> when it comes to economic ties between asians, there was a bilateral approach taken with the previous administration. in's have not really changed much when it comes to u.s. and china trade. there is no suggestion that we will see reseller ration of the u.s. being coming -- becoming involved in the tpp but is there hope we could see more multilateralism when it comes to trade agreements? >> it will happen instantly but one area where the administration could take a proactive step and have a more proactive trade agenda is in the

area of the digital economy. there are so many opportunities and there are great models including singapore's arrangements with chill they and new zealand and australia. these are models to be emulated. even the chapters of ppp that used to -- that deal with the digital economy are terrific. the u.s., canada, mexico agreement has a great model for what might be possible in the digital realm. since that is an area of such focus. especially in the time after covid when small and large businesses are depending on the internet, that is a real opportunity. i think it happened pretty fast if the administration decided to pursue it. >> emphasizing the importance of southeast asia to the u.s.. question still to come, india

might allow a foreign investor to take a stake in this ahead of an ipo that could create one of the world biggest life insurance copies. we will get a view from the asset management next. keeping with us, this is bloomberg. ♪

>> a bit of price discovery.

this is the theme in mumbai. this suggests we will be building on what we have right now with the regards to this. they are red-hot at the moment. we have very little market breath. let's get more with what is going on next. thank you for joining us. a lot of interest coming in for india. we have a flyer of a market there. what is behind it? one thing that is concerning is the market does not have that much wrath. -- brights -- breadth. >> if you look at the last seven or eight years, the market earnings -- the expectation is

moving into an area where they could be 35% for a few years. some of the private banks and we are seeing that commodity cycle and the capital formation. the positiveness is all around that. there are exporters of software. we are seeing this globally because of digitalization. these are the two big things playing out. that is what you're looking at. buying in these areas. the market is flying but in particular areas, not across the board. >> how much of it is coming from interest from abroad? >> a big proportion of it is abroad. but we are also seeing is the

retail guides, some of these small caps -- because we are seeing a good amount of this in india, we are also seeing this fly directly into the market. that is moving up in the small caps base. >> i am just wondering whether we could be on the cusp of a significant correction. if you look at the stock straight above, that is currently at 45% from 100% before. >> there are ones where we could see certain areas where the stocks are going way above the fun of it. we are worried about certain segments in the space. in the large cap space, we are seeing that it is not about where they are trading compared to the last 12 month.

a lot of stocks in that particular area, the banking space, some of the banks, the corporate bank that you look at. the software companies, we hardly did anything for four or five years. in the large-cap cap space, particularly in the corporate banks and the technology space, we are not seeing -- we are not expecting that will crackdown. i would definitely say the valuations have shot above this. >> i want to take a look at the government that suggested it is mulling over allowing fdi in its ipo. how much interest do you think that will be? >> by the model, i would say it

is an exceptional model and a very strong company. this all depends on how they treated. it had a lot of advantages but it came to underwriting for the insurance company. they had multiple advantages in the past. they have had a lot of disadvantages in the system. the interest is totally dependent on how -- if we are willing to let go of a lot of this, i think it was significant interest. if they say we will have that grip and run it like our own company, i thick it can be a problem. >> the other thing that could be a problem with the ipo is the investment book has to be revealed.

does it not? it has not been ugly disclosed before. they could ruffle feathers or encourage people to invest depending on what they include in it. >> true. i think that area where -- etiquette winners -- etiquette is one of the vix was. because of the nature of the business, to me, it was around $500 billion. i don't know how many companies you know of. a chilling dollars in their assets. they invest only in their own country. it is although stocks.

the second part is they have been buying all of the stocks. that is one area where i think there is a lot of clarity. >> at the moment, i would just give you some breaking news and then get back to you. wall street and china are reviving talks of the hunt for common ground. they can see we have been witnessing a room rent -- a new round of meetings. the talks will feature emissaries from u.s. finance and chinese glittery officials. they are puzzling as to what should be done in terms of the crackdown on the number of companies as well and the protracted standoffs taking place as well on things such as market access and data security

as well. there we go. that is a new story just breaking for us as well. very quickly, how much does the momentum for indian stocks remain and how high do they go? >> i would think the way it is progressing, they're going to mobilize assets. if he keeps to his promise of capital formation. we could see some upside. we are expecting it should grow in line with the twitter percent growth rate. that is our expectation of the markets. >> think you so much for your time today. this is the head of research at asset management. coming up later today, we speak with economist, businesswoman.

she is the ceo and founder of this company. that is 7:30 p.m.. you're in hong kong. keep it here with us. this is bloomberg. ♪

>> >> welcome back. come edition is getting stiff in

the by now pay later space but it is happy for the company direction following the acquisition. >> it is a $29 billion all stock deal. it does give a square foot hold to consumer lending. we talked to nick earlier and he charted the shared synergies between the two companies. >> when you take about squares business started as the same fundamentals and that center of economic empowerment has really shown an alignment of values and cultures and strategy confidence. the cop limits about strategic direction. the ability to leverage millions of retailers on one side of the equation from the square seller business and 70 million annual, active consumers from the cash app side of the equation to really accelerate on growth in north america will also fuel our global growth. we are expanding with her big,

global partner. really excited about the prospects of what was announced and the strategic direction in front of us. >> perhaps one reason but also surely, another company out there like paypal and apple said to be getting into your space, is it a race to have mass and scale question mark >> competition is playing out at a far greater level now given the prominence of fine now pay later. but has been really important for us from day one is not just building a core payment platform but building this marketing engine that sits behind us. that is core to how our retail partners assess the value that we can drive them but we exley sent over one million leads a day to our retail partners over the course of the last 12 months. jim has come to us to start their shopping journey. that is a criminal -- critical component of our

differentiation. not just the payment infrastructure but a marketing engine for this really highly valuable, hard-to-reach millennial and gen z consumer. quite that was nick there. let's do a check on all of the stocks reversing earlier losses despite adrs surging overnight. you have all of this posting gains of more than 5%. we have heard from kathy wood saying that she is more optimistic and pessimistic about china in the longer term. quite a change in sentiment there. >> we look at what has happened in the last couple of days and we have seen a tear upwards for those. right now, overall, we are just fizzling a little bit after three straight days of gains. we have investors wait at the chinese crackdown on private industries and the prospect of

the economic recovery very much at the forefront. very little change regionally. we had a huge rally in oil prices. some of that has come up as we see all of this homogeny down. that is a look at what is going on market wise. hong kong is off to lunch. ♪ (announcer) back pain hurts,

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