♪ >> good morning and welcome to "daybreak: australia." i am paul allen in sydney. >> i am sophie kamaruddin in hong kong and we are counting down to asia's market open. beau: the top stories this hour, explosions in kabul killed 12 u.s. service members and at least 60 africans.

president biden says the u.s. will hunt down those responsible for the attacks. u.s. stocks fall as markets turned cautious after the explosions in afghanistan, and investors are also eyeing cues from the fed at jackson hole. let's get more on the situation in afghanistan now. president biden has vowed to hunt down those responsible for the attacks outside the kabul airport that have killed at least 25 people, and he has ordered attacks on isis leaders. pres. biden: for those who carried out this attack as well as anyone who wishes america harm, no this, we will not forgive, we will not forget. we will hunt you down and make you pay. paul: let's bring in bloomberg's annmarie hordern at the white

house for more. an already chaotic evacuation process just got even more chaotic. what was president biden's message at the white house? annmarie: absolutely tragic today, the number of fatalities, especially the 12 service members, certainly heavy on the president in his remarks this evening. he said he was both heartbroken and outraged, those emotions clearly on display in the east room. first the heartbrokeness, he even had red eyes when talking about his son, and how his decisions when it comes to being commander-in-chief way on him personally as a father. and average, you heard it -- "we will hunt you down and will find you." the president talking about isis-k which is intelligence community excesses is responsible for those attacks outside the airport. sophie: is he keeping more

troops inside afghanistan? annmarie: he did say early in the week that if they had to add more troops, he directed the department of defense and the state department to draw up contingency plans. so he left the door open because this is a very fluid situation on the ground, but he did not say decisively that there would be sending more troops. earlier we heard from general mckenzie at the pentagon and he said their team assesses there are enough troops on the ground right now to deal with the situation, and they don't think they need to be sending anymore to get the mission done. and they said they are squarely focused on getting the mission done by august 31. paul: what does it mean for that august 30 one deadline? is it still realistic. annmarie: the president did not say whether he would extend it. they really have been doubling down sure they can get to this

deadline, part of that was because the intelligence community had assessed, and we heard from secretary of state blinken yesterday talking about the security situation on the ground and the likes of threats from isis-k the president, mentioned isis-k on tuesday, and today, general mckenzie said those threats still exist. they are still preparing for potentially more with either suicide bombers or a car. this is really why the situation is so, so dangerous and risky on the ground, and it is why at the moment they maintain that they want to leave with the august 31 deadline. this is what general mckenzie has said. shery: how is international community reacting. annmarie: chancellor merkel today said that their evacuations are done. the international community has been taken aback, i the very

beginning of this, there was a diplomatic memo from that to seven g7, where president biden had told the u.k. prime minister that they would leave some troops on the ground to make sure individuals can still have buses open and whatnot. you now see massive extractions even from the likes of russia, which wanted to maintain a presence on the ground. but the allies are still working together. different approaches. general mckenzie mentioned different approaches between the french and the germans and the americans, working together to get as many people as they can out, their own people, but also their afghan allies who are going to places like doha and then moving on. shery: great reporting, bloomberg's annmarie hordern from the white house. we will have more on the developing situation in

afghanistan with the former assistant secretary of defense for special operations and combating terror, william wechsler. he will join us this hour. we saw the tensions really weighing on the market. take a look at the s&p 500. u.s. futures marginally higher, muted right now. the deadly explosions in afghanistan almost overshadowing the jitters from the jackson hole symposium. we also had some data misses, job claims and annualized gdp slightly missing sentiments. wti falling for the first time in four days, although now an upside about that $67 a barrel level. bonds are flat, the 10 year yield rising for a third session above that 1.34%. what was interesting about this market, though, we have not seen the markets react so much to the headlines from afghanistan until this time. take a look at that level, that

nine 480 the timeline. the taliban announcing the explosion in kabul. in the afternoon, we had the u.s. saying that two suicide bombers responsible were with isis and that taking it another leg lower on the s&p 500. the risk assets like the vix rallying. ozzie and japanese yen also at a one-week low. the dollar rising for the first time in four days. but we can't forget about the big event of the week. jackson hole. we have been gearing up towards this moment. there are some sectors investors have to be watching as we go to the symposium. the s&p 500 banks index gained 30% against the broader s&p 500's's 20% gain. if we hear anything from jackson hole that could move the bond markets, that will affect financials. also the tech stocks, faang index seeing double-digit

gains this year. precious metals are also sensitive to inflation and trade. paul: yes, it could be an interesting debate to say the least. these three hawks in the ranks of jackson hole, the dallas fed chair robert kaplan, he would like to see tapering were discussion starting in september. he is not voting until 2023. but there are a couple of orders next year, ames bullard -- -- he would like to begin in the fall. and esther george, a longtime hawk. . she is interested in having the debate around tightening but she is less interested in any decisions. it will be interesting to see how this shakes down. shery: and really what it does to the commodity space as well. because it is really vulnerable. remember last week with the july fomc minutes, commodities took a

hit? this week they have been rallying, but swinging between gains and hits. gold and copper. we will now focus on the macroeconomic vulnerabilities around the world, so we are watching the commodity space closely. let's get over to su keenan with the first word headlines. su: vice president kamala harris said she raised human rights concerns with officials. however when questioned, the vice president failed to mention any specific commitments made by hanoi, or explain how vietnam's human rights record is worse than that of china. india reported more than 46,000 covid-19 cases on thursday. the southeastern state of kerala reported a surge in infections that could threaten the state's economy, which held steady in july when his cases declined.

almost 400 million vaccine doses have been administered so far, but only 9% of the population is fully inoculated. staying with india, the country has lifted a ban on the really good 737 max jet, leaving china as the last meeting aviation market to permit the planes to resume flying. aviation officials said their decision came after there were no new negative reports of the jets. 17 other global regulators have allowed flights to resume starting from last year. 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 su keenan, this is bloomberg. paul: thanks. we are just getting some lines from the diversified australian conglomerate, reporting if full-year net income of $2.38 million, a narrow beat on the expectation of $2.34 billion.

revenue from continuing operations, 33.9 billion, a narrow beat as well. they have a large retail arm which may have insulated it to some degree from the vagaries of the delta variant. the coronavirus. we are in a lock down here in australia. net income coming in ahead of estimates, $2.38 billion. we are still getting more details from those results. for now, let's get over to sophie for a check of the markets. sophie: paul, those west farmers results give us context into the sales data do this friday. taking a look at the ozzie and -- charles -- taking a look at the aussie-yen, it has sent the vix pushing higher. looking at how sentiment has shaped up, kiwi stocks managed to eke out gains of 4%,

resuming the upside for a fourth session in five. and we got a bunch of disappointing earnings on thursday from australia. we could see aussie stocks extend losses. offshore yuan holding onto the 6.48 handled this morning. we also have results from several banks, carriers and other names from china. switching the board for a quick check on treasury futures, you have treasury futures trading near a two-week low as we head into the jackson hole symposium. the market pricing for tapering, shery. shery: yes, the drum is beating loud. bloomberg global economics and policy editor kathleen hays join us -- joins us. what about the delta variant,

how will that affect what fed chair powell is likely to say? kathleen: we shall see. everyone is talking about where the economy should go next, where policy should go next that delta variant is a cloud hanging over the economy right now. esther george in her interview on bloomberg television, said that she doesn't see any impact on the economy just yet. >> we will have to see what impact this flare up in the virus might bring. you can imagine it might slow down the returns to the labor market, but i don't expect at this point that it will derail the economy as we saw last year when we first had to deal with the virus. kathleen: with that in mind, michelle meyer from bank of america with her data saying that consumer spending is starting to pull back in the last few weeks. here is what consumers are spending money on -- the yellow line, dining at trans has come

down. blue line, people flying, that has also come down. and then at the bottom, working from office, it peaks and then come down a bit a sign that may be there are some weaknesses or a little bit less strength. a big question presumably for jay powell and everybody in jackson hole on friday. shery: kathleen hays, our global economics and policy editor. we will be hearing from another fed president and more from esther george in a few moments. and we have breaking news. we continue to watch the latest developments in afghanistan. white house press secretary jen psaki saying that there will be no change on the 31st of august deadline. this as we heard from president biden himself that he will hunt

down those behind the cabell attacks outside the kabul international airport, killing at least 60 afghans, 12 u.s. service members and dozens others injured. this is bloomberg. ♪ hers injured. this is bloomberg. ♪

>> we will have to see what impacts this flare up in the worst might bring, so you can imagine that it might slow down some of the returns to the labor market, but i don't expect at this point that it will derail the economy as we saw last year when we first had to deal with the virus. paul: more highlights from our conversation with the kansas city fed president esther george. more analysis now, we will be joined by kathleen hays and jacob frankel.

kathleen: chairman of the board of trustees, a group of 30 former heads of the bank of israel, terry happy to have you with us. we have been doing this jackson hole interview for a long time now and of course, you have been going to the symposium since 1985. you know the big topics that get tackled every year and you know this year is a big one, taper. you agree with the growing chorus of voices at the fed saying that this is the time to do it? jacob: this is the time to discuss it, that is for sure. if anyone asks why do we have this long period of quantitative easing? in the beginning there was a good rationale -- financial markets had to be beefed up, the wealth of households had to be beefed up to encourage demand, etcetera, et cetera, one needed to boost real interest rates

long-term. this was a different context. now is the time really to design an exit why? because we are in a nonsustainable situation. nobody will believe that a zero interest rate is a sustainable situation. nobody would believe that such a big disconnect between financial markets is out-booming the real economy that is still recovering but still has a way to go, is normal. now is the time to recognize that the crisis mode needs to move aside in the policy-setting and be replaced by an ongoing sustainable part that looks at long-term sustainability, significant pumping of liquidity in the levels that we have is

creating potential vulnerability. but i want to say, we are not talking about -- a quick change, but rather, discussing it. let the market start being ready and not think of tapering as a punishment, but rather as a progress. kathleen:. kathleen: towards normal. kathleen: so how big a concern is financial stability as opposed to inflation, or is this a double whammy of reasons why the fed needs to start tapering, even if it is slow and gradual? henry: i will emphasize your last remarks, slow and gradual. even not tomorrow, but to discuss it so it is part of the planning of businessmen and everyone else. now, the financial and price

stability are two complementary objectives. many should have enshrined them as in their laws and orders the objective of central banks -- market stability and price stability. of course, in the united states, there is a broader menu of objectives, economic growth, et cetera, but neither of those objectives can be served by a potential vulnerability of financial markets. kathleen: is it prudent to start tapering when there is so much uncertainty over the impact not only of the delta on people, on their health, but on the economy? ? we are already seeing signs around the edges that people started pulling back in their spending the past few weeks? henry: possibly, but monetary

policy is not designed to deal with the real shocks of the type you are talking about. furthermore, i believe that the corona syndrome is going to stay with us for long-term. it's not something that is going to disappear. it is going to become part of the new normal. not necessarily the corona new normal, but the epidemiology, and epidemics, they are moving quickly. the system needs also to design financial instruments to deal with them. but it is not necessarily something that should encourage -- from a normal monetary and fiscal policy, that is the key point. paul: jacob, and other key point in all of this is inflation, how

transitory it is or how enduring it is. how does the fed's inflation target fit into all of this question mark does it help or hinder them? henry: to begin with, the very effects we are talking today about inflation and the risk of inflation -- the very fact that we are talking about it is already a fundamental change of the mindset that we had say. two years ago. two years ago there were many who thought inflation was part of the dinosaur age. so there is a danger of inflation. it is not imminent. and it is not the same all over the world. there are some inflationary pressures. but what is important is, for the policy perspective, is to introduce a management strategy. there is always the risk that you are underestimating inflation and there is always the risk for overestimating

inflation. we shouldn't ignore inflation. speaking of the change in the target to the average, i think that is an important progress because it means that one looks at the medium-term and does not allow a quarter to quarter or a year-to-year change to impact fundamentally the policy, they need to look in the longer term. paul: jacob frankel, former chairman of the board of trustees of the group of 30, thank you for joining us. still speaking in afghanistan, saying there is no change to the planned deadline of august 31 for evacuating u.s. citizens from afghanistan. plenty. this is bloomberg. ♪

paula: let's look at the day ahead for australia. july retail sales data will provide insight into the impact of the covid lockdowns. woolworths is in focus after the ceo says there is talk of the potential sale of david jones. we also have news from the boards of the asx 200. there are now no boards that are all-male from those 200 companies. the final two appointed a couple of female directors. australia has the distinction of having 30% female membership of all the boards of the asx. shery: it is a very low number, but globally speaking, still pretty high. in the u.s. it seems women account for 29% of u.s. board of

directors on, the s&p 500 according to the latest numbers from 2020. plenty more on. this is bloomberg. ♪ it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? ...delegating? oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today.

>> we know that the window of time is closing and it could be 10,000 people brought to safety but i would like to make it clear again today that we will not forget those who will be brought to safety >> by the airlift. >>this shows the importance of continuing that work in as fast and sufficient a manner as possible in the hours that remain to us. >> all of us are put in a situation -- nobody expected

such things. >> world leaders speaking after the deadly bombings. joining us now is william wexler, director of the middle east program at the atlantic council. he served as the deputy assistant secretary of defense for special operations and combating terrorism. thank you for joining us. president biden saying the u.s. will be hunting down those that were behind the attacks. how does this bode for counterterrorism efforts both immediate and long-term? >> immediately, we will be doing what president biden said. no doubt. we have been tracking this threat as it was coming. the administration spoke publicly about it. you undoubtedly have some intelligence about who was behind it and we are likely to take action in the near term. but the longer-term threat is

quite troubling. president biden talked about over the horizon capabilities. we do that. it is possible. it depends on certain things. it depends on how far away they horizon is. in this case, it is quite far from afghanistan to wear our forces will be located and it depends on how strong our local partners are. in this case, in afghanistan, our partners have been rounded and dispersed so we have a lot of work to do in front of us as both the isis-k, the group that did the attack today, and al qaeda, they are going to be working hard to develop external terrorist capabilities. >> the taliban seems to be playing both sides, trying to appeal to the international community but also islamic roots. what can we expect from them?

william: we can expect from the taliban exactly what we had last time the taliban was in power. and are very much interdependent with al qaeda. those relationships are not going to change. they are actually the enemy of the islamic state local organization, the one that did the attack today but both the taliban and the islamic state will be jockeying for power both locally and in terms of how they are viewed in the wider global salad fee -- salafi jihadis community. it looks like afghanistan is going to be where that battle is fought. >> how significant is that? isis-k is the enemy of the taliban. it does not consider the taliban to be devout enough. how much of a problem will this be for the new taliban

government? can you see a risk of civil war? william: there undoubtedly will be a risk of civil war. afghanistan is not a country that has ever been managed naturally by kabul. it has always been a product of jockeying between those who have power. one of the central mistakes that we made, that the united states made was trying to change that dynamic and create a centralized government. the taliban will confront that exact same reality and one of many challenges that they have will be the islamic rate. that is not something that affects u.s. interests but will affect u.s. interests, this is where president biden is correct , is whether in that jockeying, external threat capabilities from terrorist groups emerge and those groups decide to target americans at home or abroad.

that is where national security interests were on 9/11 and that is where they remained today. >> is there a risk for china as well, having a failed islamic date on its western border, particularly when you consider the pakistan taliban has been attacked in belt and road projects in the west of pakistan with fatal consequences? william: china is the one thing that is completely different from 20 years ago, when it was a non-entity in afghanistan. today, it was an important entity in the region. they have clear -- clearly stated interests in afghanistan. first and foremost is their own counterterrorism interest, especially what they relate to, the uyghurs, who they oppressed inside of china and which they see as a terrorist set of groups and has connections to afghanistan and also their trade

and mining interests that they have in afghanistan, they will undoubtedly, as we have seen elsewhere, not hesitate to bribe powers that be in different parts. that will be a new source of revenue for the taliban that they did not have 20 years ago. shery: let's stick to the short-term. take a listen to what the white house press secretary had to say. >> the president relies on the advice of his military commanders and they continue to believe it is essential to get out by the 31st. that is their advice. one is the ongoing threats and the second reason is that we want to be able to have the ability to get people out who have been partners of hours and they believe the best way to do that is stay on that timeline. shery: is the august 31 deadline still feasible after these attacks and what will that look like? william: the august 31 deadline

-- as defined prior to these attacks. we are going to get out by that deadline, some of the americans in there. not all. probably most. they have been clear to walk that back, saying that there's some who don't want to go out. we will not get out nearly enough american allies who are afghans that worked with us and we will not even try to get out a lot shimmer at dance you have a reasonable expectation of being persecuted under a taliban regime. that was the policy before these attacks happened today and that will be the policy after these attacks happen so by that definition, we can still get out by the 31st. if we were going to define our objectives differently, of course the 31st was going to be insufficient. if that is how we define the success of our mission, we can

accomplish it by the 31st. haidi: how is the winding down of operations by allies? could there have been better coordination with the u.s.? william: yes, there's clearly been statements in many -- many of our european allies have not hesitated to speak openly about their dissatisfaction in the level of coordination they receive from the united states which is both unfortunate and surprising because both president biden and those around them, this is where their strength lies. that said, now that everyone knows what the objective is, there's been very good technical -- tactical coordination to take advantage of the capabilities the u.s. military has been able to provide in a short period of time. those capabilities will end in

an equally short period of time as well. that will be the remaining challenge because as you just heard the press secretary say, the expectation is that after the 31st, there will be a large number of people that the united states and allied countries want to get out and the only way at that point with no forces on the ground is going to be through the acquiescence and diplomatic immunity of the taliban. what i am very worried about in addition to the terrorist threat is if the taliban takes hostages. we know they have done that before and they will do that in the future. >> william wexler, former deputy assistant secretary. thank you so much for joining us. still to come, surging food prices continue to feed into inflation pressures ahead of jackson hole. our guest joins us to discuss. this is bloomberg.

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>> more hawkish news from the fed ahead of its much-anticipated jackson hole symposium as esther george is sticking to her call for a start to tapering this year. that is despite the delta variant risk. she gave bloomberg her outlook

as she gets ready to host the event. >> this is a big committee, as you know, and one of its real strengths is a diversity of. looking at a common set of data. that is a healthy discussion and you often see those differences emerge at the point that the economy is turning. it is a healthy sign for the committee to begin to debate and deliberate on those issues as we judge when we made progress towards the objectives that we set out. >> i wonder if wall street is making too much of the idea whether you say something in september or november. is that cutting it as a policy to finally -- too finely? esther: we want to make sure we are being transparent about the factors that are being

considered for that transition as it relates to asset purchases , and i think that is what has been happening. the public has been hearing those communications. of course, we are coming into a meeting in september where we will continue to talk about how the economy has unfolded and the timing for adjustments to those asset purchases. >> interesting story today about how wall street does not care as much about when you begin the taper as when you end. what is your view on how fast you would want to get out of the qe business? esther: i think it is important to get started. the conditions of pace, timing of when we end, i think i am open-minded to listening to the debates around that. i am less interested in deferring that decision so it's important to really center on

when we believe the progress in the economy is sufficient to start that process and that is where focus. that is where we should get started this year. we should begin to pare back the amount of accommodation. watch to see how the economy unfolds after that, and then down the road, be in a position to make decisions as the economy changes on what we need to do with our policy rate. >> i would guess you would agree with chairman powell that tapering is not tightening and that the two are not connected. the way traders see it, at this point, because of what the chairman has said, you are not going to start tightening until you are done with tapering. there is a bit of a connection on the backend. i'm wondering if you agree with the members of the committee who say we should get it done faster than we did last time. esther: i think there's good arguments for that. depending on how the economy unfolds. the arguments that ending the

asset purchases will give the committee some flexibility to judge the progress in the economy, but i don't think that is in any way a mechanical decision and one that we can layout today, whether it's a certain amount of months, the conditions that have been laid out from the guidance of the committee is that we will have achieved maximum employment and price stability objectives when that rate decision is made. michael: whatever decision you make about the pace of tapering, you are doing 120 billion a month. at what point will anyone even notice into the economy? esther: i will be watching that. it is a tremendous amount of accommodation going into the economy right now. assuming communications have been laid out in committees

response to how the economy is unfolding is clear. you would expect the economy to be able to work through that and that is my expectation that with good communication, with clarity around the factors that we judge , pushing us toward our mandates that that will all work out in terms of the economy's ability to absorb that. shery: esther george speaking to michael mckee, headed to the jackson hole symposium in a few hours. it is a high-stakes week for the commodities market. remember what happened with energy and metals, seeing those substantial losses after those fomc minutes came out from the july meeting and there were taper concerns. they took a big hit. wti gaining ground in the asian session and this after falling in new york for the first time in four days. jitters ahead of that symposium.

bloomberg intelligence saying the u.s. fed taper chatter pains a grim picture for energy -- paints a grim picture. it's below the $1800 level. the uptick in yields weighing on the precious metals. copper and lead those declines in base metals. we are seeing the macroeconomic focus and growth concerns affecting those base metals. iron ore did get a boost from president xi jinping, saying that china will strive to hit key economic goals so investors have been betting that could lead to more demand. it's a similar picture for multiyear highs in the soft commodities space as well as. there is supply concerns. we have weather impact in brazil, florida, around the world when it comes to these commodities. we saw sugar under pressure in this session but really after rallies given the frost damage in brazil.

irrevocable coffee -- arabica coffee has been up as well. elevated food crisis are not transitory. let's discuss inclinations of rising prices with a ceo at an etf sponsor focusing on agriculture commodities. it is great to have you with us. when can we expect the supply and demand imbalance to get fixed? >> for different commodities, that will be different. demand is not transitory. it is for all commodities. we are coming out of covid, demand ramping up for virtually every commodity. demand for ags in particular, if you combine the use of corn, soybeans, and wheat globally, it makes a record or just misses every year for the past 60 years so that demand is not transitory.

this growth in demand is not transitory. when you have weather disruptions, as you mentioned earlier for coffee and sugar, you have a big problem. demand is not transitory. the increase in demand is not transitory. oil took a hit because of taper years. ok. you could have a demand lift in sensitive commodities like energy said a -- should they taper tantrum occur. someone from blackrock said this morning that trillions of dollars need to be invested to keep up with iron ore and things like that. >> how much is this about speculative behavior? you have seen china trying to clamp down on that, right? sal: overall, speculative behavior is not driving commodities prices. speculators are benefiting from the bump up in commodities prices which are going up because of the supply and demand

imbalances, meaning there was a surge in demand coming out of covid for all commodities. you had supply disruptions because of covid related global supply chain disruptions and then ian ag, you have agricultural problems all across the world for all the different big ags, between the frost you mentioned in brazil and those commodities, too much wetness affecting the quality of wheat in france, and canada virtually no canola crop, the harmed wheat crop. the u.s. dakotas with the harmed wheat crop. all of this is because of the weather. the increase in demand is not transitory. the supply can be corrected in one or two growing seasons. the supply needs for overall macro demand for iron ore, it will take a decade to satisfy. it depends on the commodity you are looking at but none of this is transitory. paul: you have run through a list of short-term factors

affecting supply and demand but what about long-term factors? let's take coffee, for example. ongoing extreme weather events. the impact of change. do you see any longer term effects that will influence prices? sal: no question, climate change is an enormous effect with agriculture. all of the advanced as we have made with technology and bioengineering, we still are completely dependent on the weather. you have seen serious harm to the coffee crop. coffee has been on a tear lately. as you pointed out earlier. we don't know how damaged those trees are. that was a once in a quarter-century frost. it takes a couple years to bring those trees back. it could be a big deal for coffee. it is commodity specific. again, they are not going to pull back to the prices we were use to for eight or 10 years this year. it will not happen until next autumn in the northern hemisphere when we figure out if

we are going to replenish our supplies or not. the balance sheets are tight and that is not going away this growing season. paul: your company is the only etf provided dedicated to agriculture. what are your inflows telling you right now? sal: the inflows for last august through earlier this year were very health deep. we saw a lot of people. commendably, hundreds of millions of dollars were made by investors. right now, very quiet. people know that you have probably in the highs and it would take something very dramatic to put new highs in. but they also know we have probably seen the lows for the year. we are not going to see last august lows for at least another year so we are trying to find a higher trading range in the ags, and our flows and funds are reflecting that in terms of the activity. paul: sal gilbertie, ceo of a

trading company. thank you for joining us today. we have plenty more ahead on "daybreak asia." do stay with us. this is bloomberg. ♪

shery: petra china's profits surged in the first half as oil demand and a recovery in prices helped reverse its biggest ever loss. china's top oil and gas producer

posted net income of eight point $2 billion, the best performance in seven years. general motors signaled it will continue its relationship with lg energy solution at the heart of it mass vehicle recall. 100,000 chevrolet bolts were recalled at an estimated cost of 1.8 billion dollars after 10 vehicles caught fire. >> we have our internal work. we have one of the largest development labs in the country. we have a partnership. we have multiple pathways with battery technology to make sure we have a leadership position. paul: let's stay with the auto supply squeeze. sophie kamaruddin is looking at the morning because. what are you seeing? sophie: i want to highlight key commentary from industry players like japan, which expects crunch to last through 2022.

they are running at full throttle and they plan to add more capacity. flipping the board on top of other players like tsmc, which plans to spend $100 billion over the next three years, awaiting confirmation for a plan to lift it prices. we have seen customers stock up on supplies. a drop in demand. using supply crunch by 2023 as more production comes online and switching up the board over at pieper sandler, they are assessing a scenario, a down cycle when a supply demand equilibrium is met. broadcom is the best position due to the sticky software business from free cash flow. it could be a more -- at more risk. shery: we will be speaking with ryan about the auto supply crunch at eight: hong kong time.

take a look at the white house. -- at 8:00 hong kong time. take a look at the white house. the deadliest day for the u.s. military in years. "daybreak asia" is next. this is bloomberg. ♪

paul: hello and welcome to "daybreak asia." i am paul allen in sydney. sophie: i am sophie kamaruddin in hong kong. we are counting down to asia's major market opens. shery: i am shery ahn. our top stories this hour. explosions outside kabul's international airport kills at

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