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

least 60 afghans. president biden says the u.s. will retaliate. investors eyeing cues from the jackson hole symposium. three policy hogs urged the central bank to move quickly on tapering bond purchases. asian stocks eye a cautious start on the geopolitical tension following the afghan blast. it was about fed officials talking today including robert kaplan and jim bullard, talking about fed tapering and how we should be starting to move more quick lee. esther george saying the risks from delta do not alter the taper urgency and it is important to get darted while scaling back bond buying but when it came to the market moves for today, it was really interesting that it was the afghanistan headlines that have not moved the market that much in the past that really made an impact on asset prices. paul: the situation in afghanistan did take a turn for the worst in the past few hours. two blasts killing 12 u.s.

soldiers. a total of 60 people killed, many injuries as well. president buying saying the u.s. did not forget, did not forgive, and would hunt down those responsible. the white house saying the deadline, august 31 for evaluating -- evacuating those who helped the u.s. during the long afghan campaign, the deadline remains unchanged. president wright and has vowed to hunt down those behind the attack. let's listen to what he had to say. pres. biden: for those who carried out this attack, as long as anyone 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 our washington correspondent now, joe mathieu.

in terms of those responsible, isis-k, thought to be the group behind this, they are not completely unknown to the united states, are they? joe: it's interesting. we have been getting warnings from the pentagon and the state department about potential attacks from isis-k for the better part of a week really since this withdrawal began. this has been a deep concern going into this. it actually happened and we are hearing from the president himself as well as the pentagon in a briefing that took place a couple hours ago that there was this high chance of further attacks. rocket attacks against the airport and the aircraft being used to evacuate americans from kabul. shery: and yet, they are sticking with the august 31 deadline. why? joe: it's interesting. not only is president biden holding to that, there is a move in congress by the republican

leadership to pass legislation to call back congress and pass legislation that would require american forces to stay in afghanistan until all americans are out. the fact of the matter is, the president has said repeatedly, even if that legislation does not pass and that is not likely, that american forces will not leave until all americans who want to get out of kabul get out of kabul. there are 502 1000 -- 500 to 1000 left to evacuate. finding the final 1000 is difficult and will likely take the rest of the time we have here. i would also note that civilians aside, it will take several days for the american military to get out of kabul. we have as many as 6000 troops. all of that will take at least a weekend to move out of kabul. if we start the draw down now, it would still take several days. shery: this is the deadliest day for the u.s. military in years and it comes after allies and members of congress are urged

them to delay the withdrawal. how much pressure on these attacks putting on president biden now? joe: there is an enormous amount of political pressure. you can hear it in his voice today. somber, sad at times, a moment of silence. leaning into the podium on his elbows, putting his face in his hands, exposing the top of his head to the camera, these are not typical optics for a commander-in-chief in a time like this. he is speaking about his son who served in iraq and died of cancer upon his return home and you just heard the remarks that he made to the east room, saying that we will hunt you down and that does appear to be the motive of the president right now. there's a lot of work to do in getting everybody out. i will add that some have suggested we stay longer because of this. because it will take more time potentially to get americans out and we now know what kind of

danger there really is. shery: brian gu -- joe mathieu there. the latest attacks in afghanistan have taken some of the spotlight away from jackson hole but the drum is beating lowder for fed chair jay powell to say it is time to start tapering now, not later. kathleen hays is here with the latest. what about the delta virus? how will that affect what he is likely to say? kathleen: we heard from jim bullard and robert kaplan saying that they still think that the taper should start next month in september. quite apart from what's going on in the virus and esther george, who hosts the economic symposium in jackson hole every year, was on bloomberg television earlier and said he does not feel the virus derailing the economy at least just yet. >> we will have to see what impact this might bring.

you can imagine it might slow down some of the returns of the labor market but i do not 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: some economists are wondering what is happening. michelle meyer saying some metrics of consumer spending have started to slow credit card use, etc. i love this chart. look at the steady rise in dining out, flying on a plane. far right hand side of the screen, you can see every one of them has peaked and started to go back down. there was a manufacturing survey they put out every month and the latest one is for manufacturing but they had a question about how the virus so far -- recently, delta affecting their look at employment. 60% of the people they surveyed said they have had job

applications fall a bit so that might be another sign people are getting a little bit nervous. we will wait to see what jay powell has to say about it when he speaks at the jackson hole symposium on friday. paul: kathleen hays there. we will be hearing from jerome powell later during bloomberg's special coverage of jackson hole. right now, let's get a check of what is happening on the markets with sophie kamaruddin in hong kong. sophie. sophie: with markets waiting to see what comes, treasury futures continuing to go lower. s&p e-minis little changed. this after we saw u.s. stocks retreat from record highs. b of a raising their estimates for the s&p given the strong showing seen so far in earnings and in asia, we are seeing a mixed bag when it comes to futures after the regional index snaps a three day game on thursday and we have earnings in focus as well from the region, from china.

we have brokers and carriers announcing results and industrial profits from china as well. the offshore yuan holding onto losses above 6.48. in a dovish taper from the fed could -- 8% year-to-date. we have caution pulling up the terminal right now to show you what has been going on in behaving space. it it of the bid on the developments. the aussie yen holding below 80 and we do have spot gold seeing a little bit of a boost but below 1800. we saw futures higher on the back of those developments so geopolitics as well as -- shery. shery: let's get to su keenan with the first word headlines. su: we start with the e.u.'s home affairs chief. she says countries need to come together to avoid a migration crisis in afghanistan. the e.u. executive heading the

washington meeting called on western countries to step up programs for the refugees. she also said europe and the united states need to figure out how to better support afghans who remain in the country. kamala harris meanwhile says that she raised human rights concerns with vietnamese officials including the issue of releasing imprisoned dissidents. when questioned, the vice president failed to mention any specific commitments made by hanoi or explain how vietnam's human rights record is any different from that of china. to india, where the country reported more than 46,000 new covid-19 cases on thursday, the most for a single day in over a month. they reported a surge in infections that could threaten the safety economy which held steadily in july as cases decline. almost 604 million vaccine doses have been administered.

only 9% of the population is fully inoculated. it came with india, the country has lifted a ban on boeings 737 max jet, leaving china as the last meeting aviation market to permit the plane to resume flying. in india, aviation officials said the decision came after there were no new negative reports on the jet. 17 other global regulators have allowed flight 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: still to come, with the paralympic games on in tokyo, we assess the progress made on inclusion and gender equality in sports with the director of the center for research later this hour. first, we continue to look ahead to jerome powell's speech at jackson hole. we will get the market outlook

with steve bryce. that is next. this is bloomberg. ♪

paul: how goi -- having already dashed plans, rising coronavirus cases are limiting what chair powell can say for u.s. monetary policy. let's bring in the cio at standard chartered. thank you so much for joining us . as you are looking ahead to jackson hole, what is your expectations around the country that will come out of that meeting, particularly when it comes to yield and treasuries in the u.s. dollar? >> initially, central scenario basis, they are saying the variant is not something to be

too concerned about. it does increase uncertainties on the downside. whatever we get from them will be in line with a conditional -- assuming this happens and the doctor variant won't be something that locks down the economy again. we will taper at some point in the future. as far as markets are concerned, we have been consistent with a gradually higher 10-year treasury yield, heading towards 1.75 percent over the next six months to 12 months and then the dollar weakening. the dollar has obviously gone up. ahead of it, the dollar generally weakens thereafter so we don't see any change in the environment. overall, they are talking about a lot already. the implications aren't going to be too dramatic. paul: i guess is sort of embedded in that question is what are the chances of another

taper tantrum this time around? steve: i do think that they obviously have been more proactive this time since 2013. suddenly realized they are thinking about tapering so the fed has been very clear that it does not need a repeat of that policy mistake, if you like, which involves many lessons to be backtracking on their initial announcement and pushback tapering so they clearly want this to be as smooth as possible. obviously, that reasonable job means you have different people saying different things on the news so there's still some uncertainty. it is now a case of when and how fast rather than -- the market is already being prepared for that. shery: to your point on treasury yields rising from here, this gtv chart on the bloomberg showing that technicals are also supporting that. if you go above the 1.7 percent

levels, the 10 year yield could be rising to 3%. does that put you in the value cap? steve: yes, we remained in the value cap. it worked out at the turn of this year to the start. the decline in the 10 year yield has been a major force of that. that has come down faster and further than we thought it would. but the big picture is still, you know, obviously, growth expectations are still pretty high. yes, we have seen data disappointing on the downside but that is just because they got way ahead of the fundamentals so that is natural, but growth next year is expected to be pretty strong. inflation is likely to be above that 2% threshold at the forecast horizon. that should put pressure on 10 year yields to move higher and that is a good environment for value to outperform in our opinion. >> how does that set up the asian credit base that has been

roiled by everything from water wrong -- from a company to evergrande? steve: a lot of regulatory pressures going on. we think there has been significant value generated in china credit and the china high-yield space, which is trading extremely cheap relative to history and the u.s. and europe high-yield as well so really what we are seeing here is default rates being price in very, very high, and we just don't see those rates actually materializing. one of the things we think is really attractive today, it would be asia high-yield bonds. paul: how about the attractiveness of chinese equities at the moment? we hear president xi talking about, and. the regulators appear to be lying in wait around every corner at the moment so how does the investing profile look for

you right now? steve: it is going on in the u.s. to some degree as well but it is much more front and center in china with regulators coming on. it is likely to continue for many months to come. we have some physical developments or timelines over the course of next year with the next term of president xi. so we see that regulatory pressure remaining in place for some time. china equities have cheapened significantly and priced in a lot of this we may still have further to go so at the moment, we would not necessarily be biased on dips of equities right now. shery: it was great to have your take, steve brice. you can get a roundup of the stories you need to know to get your day going in today's edition of "daybreak." bloomberg subscribers can go to dayb on their terminals,

and it's also available on mobile in the bloomberg anywhere app. you can customize your settings so you only get the news on industries and assets you care about. this is bloomberg. ♪

paul: a quick check of the latest business flash headlines. petra china's profits surge in the first half as a recovery in prices helps revert its loss in the same period last year. china's top oil and gas producer percent net income of 8.2 billion dollars, its best performance in seven years. new energy will make up two thirds of its portfolio within 14 years. it aims to cut emissions near zero by 2050. profit plunged in the first half as a financial hit from the troubled property developer more

than doubled. the insurer says they raised about $3.2 billion from profits. it holds a 25% stake in china fortune, the first developer to suffer repayment failure since they tighten controls on the sector. it fell short of projections hurt by a ride shortage of semiconductors. revenue in the third quarter goes up 15.3 billion -- it is up 7%, less than the average analyst estimate. the ceo says orders are strong but will be constrained. peloton shares tumbled. it found an accounting problem. the fitness company says -- to make the product more affordable. this backed and adjusted loss of $325 million in the current fiscal year and expects sales

this quarter to miss estimates. shery: we are counting down to the start of trade in tokyo and seoul. some of the stories we are watching today. in south korea, we are going to get parliament holding a hearing for a chairman nominee at 10:00 a.m. local time, likely to face questions on rising household that and cryptocurrency regulations as well. the general motors ceo signaling the carmaker will continue its relationship with lg energy for ev batteries even amid its 1.8 billion dollar vehicle recall. we will have more from our exclusive interview later. in japan, the government suspended the use of 1.6 3 million doses of the moderna covid-19 vaccine, after receiving reports of foreign particles. we are awaiting inflation figures for tokyo due at half past this hour.

a marginal rise forecast in the august figure. japan's ruling liberal democratic party will hold its leadership vote on september 29. the japanese former foreign minister announced he will challenge the prime minister in the election. paul: thanks. for more on that leadership vote and yoshihide suga's prospects, we have our politics reporter joining us from tokyo. he was very popular until coronavirus. can he hold onto his job? >> is still remains in the balance. there is a months ago until september 29 and a month is a long time in politics as many people have said, but yes, the former foreign minister gave a press conference and outlined his policies for the coming election and seems to be closer to public opinion. he talked about passing a big economic stimulus package. he talked about introducing laws

that could enable harder lockdowns on the public and also enable the government to insist that hospitals admit patients because one of the big concerns among the public at the moment is that people are getting infected with coronavirus and not being able to get to hospital so you have seen some cases of people dying at home. having said that, a lot in this election depends on the major factions within the ldp and we have yet to see how some of those are going to roll so there is a lot still to see. shery: the backing of a key faction recently so how does this that him up at a time when public approval ratings do not seem to be very high at the moment. isabel: he has got the approval of the nikkei faction. it is certainly a major faction. it was the first to stand up for him last year and last year, we did see support snowball.

the other factions swiftly fell behind and within over a weekend, just had the election so not but it's not necessarily quite so simple this time. suga is extremely unpopular. his popularity rating is below 30% in some poems, which is seen at the make or break level. whether the other factions will make the same position in the end, this time, we don't know. in addition, this election will be held in a different format from last year so we will see a lot more weight placed on the rank-and-file members of the ldp, whose opinions are more likely to be closer to those of the general public. shery: isabel reynolds. take a look at some of the futures trading at the moment. japanese futures looking like this under a little bit of pressure right now rising yesterday to a two-week high and we continue to see the japanese yen really range bound between the 109 and 110 level. kiwi stocks gaining at the

moment, reversing some of those losses in the previous session as we continue to see the downside pressure not only on the kiwi dollar but also the aussie dollar, given also the strength and the dollar and not to mention concerns about the coronavirus infections. plenty more to come. this (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you? think again! even a jeep can't burst it.

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shery: we have breaking news out of japan. we are getting the tokyo cpi numbers year on year as a contraction of her .4%. it is a larger contraction than was expected for the month of august and it is a similar level of deflation we saw in the previous month but excludes fresh food prices. the tokyo cpi numbers came in flat so instead of a contraction as was expected, it is just flat prices, and remember that tokyo cpi is important because it shows you where headline

inflation the rest of the country will go for the month of august so we could see a little bit of more upside pressure for those core cpi members for japan when we get those later in the month. excluded fresh fruit and energy and you get the core cpi numbers that is still a contraction of .1%. we are coming from very depressed levels already because the government applies the travel promotion campaign and that kept prices down and the core cpi number has been in deflation territory since august of last year and really, the japanese inflation figure is nowhere near the boj inflation target. let's turn to the markets because the s&p 500's spectacular our performance may not be waiting anytime soon. it is more like to strengthen. delta clouds the global economic outlook. joining us to discuss is mark cranfield. this call caught my eye because earlier in the week, we have seen calls from the likes of goldman sachs, bank of america, schroeder investment as well,

that they really like emerging-market stocks because of the cheap valuations. why do you think the s&p 500 will still be the winner here? >> certainly valuations make the s&p look a little bit rich compared to emerging markets but it has been that way for quite a long time. if you look over the past couple of years, the outperformance of the s&p 500 is nothing new and then you look at some of the factors which drive it and that make more understandable. american companies have managed to adapt themselves extremely well to the pandemic situation. they have shown the ability to continue to make very big profits even in a difficult situation. you also have a position of the way america addressed the vaccination drive. they are ahead of many countries and have managed to get a big part of their population back and moving around even as many smaller countries are still struggling to contain the virus. it may well be that the united

states is giving people booster jabs even before some people get their first sets of vaccinations and when you have a domestic economy which is huge, it can generate enormous profits for a company even if some of the international business has been constrained. it is hard to bet against united states companies continuing to do very well even when the rest of the world seems to be falling behind. it may look expensive but at least the s&p companies are based in u.s. dollars which is the favorite currency at the moment with so much uncertainty in the months ahead. paul: how much available does -- play? mark: american profit margins have improved over the past few months. so even though there are other

metrics which suggest the s&p 500 is a bit expensive, companies are actually showing that they are able to produce even wider profit margins in difficult situations so i think people will take that as being a good sign plus the transparency involved as well. when you are assessing what goes on in the united states, there's plenty of economic data. the central bank speakers. there is a general comfortable situation. we have been able to assess what is going on. in some parts of the emerging-market world at the moment, it has become even more cloudy when you consider how they are dealing with the virus situation. on top of all of that, emerging-market are being distorted by what china is doing as well. regulation is becoming even more difficult. that is affecting the whole emerging-market universe. paul: mark cranfield there. you can follow all of the day's trading on our markets live

blog. you can find that on the bloomberg at mliv . you can get a market run down in one click. there's commentary and analysis from bloomberg's expert editors so you can find out what is affecting your investments right now. one thing that we are watching is the ipo environment in india at the moment. it has been a record year for ipo's in india. the biggest ipo pipeline since 2017. not a record but certainly up there. regulators wanting a closer look at some of the companies that are listing. for example, eight of the companies that have listed or raised over $100 million, two of them are trading above the list price so they want more information on 15 of the proposed 42 companies looking to ipo and that includes the payments giant peyton. shery: there is this trend across asia on this regulatory scrutiny coming from the government. whether it is in india with

these ipo's, in china, with everything that is happening there, but also in south korea because we saw this record year of ipo's in south korea as well, talking about $17 billion raised in these ipo's this year alone which is four times the amount for all of 20/20 and now, you are seeing the financial supervisory service already coming into the markets in south korea, telling listing hopefuls to take a harsher look at your valuations. they are becoming more and more skeptical about those numbers so we are watching this space very closely because it has become a little bit of a trend across asia when you see the exuberance in the markets, how that is translating to more market action from regulators. it's turn to sophie to see if that exuberance is translating to the markets today. sophie. sophie: we have seen lukewarm debuts in seoul, which closed lower on thursday following the bok's rate hike and looking at this chart, we can see there has been a test of resilience for

koreans box for the bok. for the most part, we have seen korean stocks hold up. current situation looks similar to the cycle that began in 2010 and ended in mid-2011 when the kospi did push higher. this time around, the cycle is starting with a strong outlook for the korean economy. we are seeing what is going on in japan. you see the yen looking little changed after it pushed towards that level on the afghanistan development. the yen is set for a second loss as we head into the jackson hole gathering. we are seeing jgb and treasury futures continue to go lower following hawkish comments from james bullard. paul: thank you, sophie. let's get to su keenan for a check of the first word headlines. su: we start with president joe biden, who has vowed to hunt down those responsible for a series of explosions outside kabul it's airport that killed

13 u.s. service members and 60 afghans. the pentagon says the suicide bombers had ties to isis and the commander in the region says he is expecting more attacks as the u.s. continues its plan to withdraw all american forces by tuesday. >> those who carried out this attack, as well as anyone wishes america harm, no this, we will not forgive. we will not forget. we will hunt you down and make you pay. >> meanwhile, a meeting between president biden and the israeli prime minister have been postponed. the pair planned to talk at the white house about a strategy concerning iran which both countries say has been speeding up its nuclear program. the events in afghanistan led to the postponement. the white house says the meeting will take place later on friday.

emmanuel macron has urged ireland to join a global deal on establishing a minimum corporate tax rate during his first official visit to the country. the economic model has been built on low rates to attract multinational firms and it has so far refused to sign the preliminary accord struck in july which calls for a minimum rate of 15%. the corporate tax rate is currently below that at 12.5%. 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. shery: coming up, we assess inclusion and gender equality in sports with the director of the center for research. she joins us next. this is bloomberg. ♪

shery: the paralympic games are underway in tokyo and while the olympics games reached close to gender parity, advocates are still calling for further moves by the ioc to boost diversity and inclusion at future games. let's bring in the director at the center for research on growth and women in sports. it is great to have you with us. just give us your assessment of

what the olympics and the paralympics have been like in terms of gender representation. >> it depends on which metric you are looking at. thank you for having me and covering this and topic area it has been the top of my mind the last couple weeks as we head into the paralympics. but the ioc has a gender equality report. anybody can download it online. there's 24 recommendations. some of them i think we did pretty good on an many of them, we did not. shery: what are those places that we have really come short? nicole: the ones we have come short on our many more than the ones we did well on. gender balanced coaching staff and officials, uniforms, scheduling, i think the facilities in tokyo seem to be great so i would give us work on

that one. in terms of leadership and governance of the ioc and national organizing communities, we fall short in terms of meeting gender equality. paul: it is interesting that some of the events are male only, in terms of the decathlon, for example. do you see any improvements being made on these areas where the ioc has fallen short before we get to paris? nicole: i certainly hope so. in terms of having a comprehensive report with recommendations and then not following them, that does not seem to be a really good roadmap to gender equality so i certainly would hope so. when it comes to the u.s. and l.a. olympics, i'm hoping we are making some progress, but without measurement and metrics, we cannot really ascertain if we are making progress or not. i think the one way that we did well is we had fairly gender balanced participation for the first time ever.

paul: how about media coverage of events? was that gender balance? nicole: --gender balanced? nicole: it certainly was more than gender balanced in the u.s. our major tv network that covers the olympics is an bcm based on data for the olympics, we don't have it for the paralympics yet, obviously. the female athletes on nbc covered the olympics -- they were covered 58% of the time, which is overwhelmingly disproportionate to what it is the regular times of the year when we are not in the, which they get 5.4% of all media coverage, women athletes in non-olympic times that was pretty good. shery: what about the funding of resources female athletes get as compared to the performance? nicole: there are still

disparities. our women are not paid equitably to the men. we have a long ways to go in terms of under equality and payment of athletes. there is a lot of room for improvement as well. shery: how much is the improvement going to come from the ioc moving itself? the countries? and also the athletes? nicole: that's a really interesting question. there is two ways that change is going to happen. one is from the top down. the president of the ioc and executive leadership committee making changes. although they are happening, that is very slow. the way they are seeing the most change is from the athletes

themselves, specifically female athletes, exercising their voices and agency to call out inequalities and inequities when they see them. that seems to be the way where change is being pushed the quickest. paul: nicole lavoi. director at the tucker center for research of girls and women in sport. sure to tune into bloomberg radio to get analysis from the day's big newsmakers and get in-depth analysis from the daybreak team. we are broadcasting live from our studio in hong kong. listen via the app, radio plus, or bloombergradio.com. we have plenty more ahead. stay with us. ♪

paul: yeah just a few minutes away from the open markets in sydney. tokyo and seoul. sophie kamaruddin is taking a look at what stocks to watch. sophie: we are keeping an eye on wesfarmers after they announced a special dividend on the back of its solid earnings, posting a 40% jump. also watching another full-year loss despite what we sign lithium prices. and on that, the chip supply crunch remains top of mind. a japanese chipmaker warning of the shortage lasting through 2022. tsmc may lift chip prices and we

have hp reporting sales that missed estimates on the supply crunch. asian computer-related names like fujitsu today. shery: let's take a look at the supply shortage. manufacturers and shipping executives in asia warning the global supply crunch will get worse before it gets that her. this as the holiday shopping season will only add to the pressures. joining us now to discuss is a bloomberg analyst. what are the supply chain issues plaguing automakers right now and are they getting any better? >> the way i see it, essentially two issues. one is the shortage of parts and two is the logistical difficulties in getting the parts to the manufacturing plants. initially, it was just semiconductor chips but now increasingly, it's other parts coming short as well from rubber, foam, to plastic parts,

and this is coming about as delta spreads into component suppliers across the world in countries like malaysia, vietnam, and southeast asia. i would say the issues are worsening and becoming more complex. the second issue, which is logistics, we are seeing tight shipping supply output with growing demand as economies recover from covid-19 so this has led to shipping rates soaring through the roof, the container space being hard to come by even with one that is willing to pay. it tends to give large customers priority while smaller ones can only accept delays. on top of that, the high rates are not only limited to container shipping. we have shipping rates at record highs as well. it makes the parts, raising component costs for automakers. paul: the index has been surging in the past few weeks.

what can be done to resolve the supply chain issues and how long is that going to take? james: for the parts shortage, companies need to invest in big data and automation technology to help manage their supply chains, optimize inventories, and build resilience, basically, in their supply chains. they can work with logistic companies on this and at the same time also consider diversifying their suppliers. also maybe switch to nontraditional sources for different countries like the philippines, india, where they traditionally never sourced from. at the same time, one comment to make is may be large auto companies and suppliers are able to afford this. smaller firms may be less keen to do so so it will take time for the automakers to really implement this throughout their supply chain. but one good news is i also

cover logistics and i see the logistics companies are increasingly rolling out standardized products that can help smaller enterprises with miller supply chain solutions at a cheaper price and shorter time so these are non-customized products that hopefully will help them with their supply chain in the shorter time. for logistics -- paul: all right, james teo, we will have to leave it there. that is bloomberg intelligence analyst james teo. let's get to a bloomberg exclusive. weston sat down with the general motors ceo in detroit. he asked of the importance of battery technology and the automakers future and the recent problems with the chevy volt. >> we continue to invest in battery technology. we see the cost coming down. we will get to a point -- because of the requirements for regulatory perspective, they are

going up. over a longer period of time, we think we are going to not only have affordable electric vehicles with very well priced battery capability power, but the software business we are going to unlock on top of it because the vehicle, whether it is ice or ev, is really a software platform. that business that is true growth for us is going to change substantially. >> you mentioned the battery technology which is key to this. you made the decision to pair it with lg. you have some difficulties recently. different technology. the recall. when will you understand what went wrong so you can fix it? >> when two very specific manufacturing defects happen in the same cell, that is when there is an issue. we are working with them to make sure that those issues are solved. and then we will be a will to

provide module replacements for our customers. it is important that the technology is different. i believe the lessons learned that we have through this experience is going to benefit the entire industry and the importance of the manufacturing processes and with our joint venture with a valued partner, we will be able to bring -- we will combine their expertise with our expertise so i have a lot of confidence in our platform. david: as far as i can tell, they are your only partner when it comes to battery technology. some have had two or three different courses in the race. -- horses in the race. david: we are -- mary: we are working with lg but we also have our internal works, one of the largest development labs in the country, and we are building a manufacturing lab as well area we also have a partnership with

an energysolutions company. we have multiple pathways with battery technology to make sure we will have a leadership position and the flexibility that has been designed into the platform is that many different chemistries can be introduced and that is where we are really well-positioned as we go forward to use the best battery technologies. david: this fundamental transformation is going to change the supply chain a lot. you will need different components. not just batteries but other things as well to make it all work. where are we with semiconductors right now? is that an indication of what is to come? mary: the semiconductor shortage has some very specific things that caused it. it continues to be a challenge today because of covid and the impact in southeast asia. specifically malaysia. it continues to be a very volatile situation but that is in the short-term. as we move out, and i can tell you that general motors not only with semiconductors but also all of the critical parts, minerals,

precious metals, that we need to build ev's and continue to build ice, we are working to have either partnerships or joint ventures to make sure we will not be inhibited by supply as we go forward. shery: mary barra exclusively speaking to david westin there. stay with us for more on the auto sector. we will be speaking with vice chairman and president about the company's latest earnings report and the auto supply crunch at 8:30 a.m. hong kong time. here is a quick check on the business flash headlines. the crunch will last through next year, continuing to weigh on the automobile and industrial machinery industries. a chipmaker says it has been hampered by a severe shortage of key materials. apple's ceo, tim cook, will collect the 10th and final payout from the deal he made to take on the top job. it consists of 5 million shares,

worth $750 million. the previously sled -- he previously said he plans to give most of his fortune away. this is bloomberg. ♪

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>> welcome to daybreak asia. i am shery ahn in new york. >> and sophie kamaruddin in hong kong. >> we have the major markets opening in asia. investors are looking for clues on tapering in jackson hole. explosions in kabul leave at

least 60 afghans dead. president biden promises retaliation. later this hour, we will speak to brian about the companies -- company's latest earnings and the auto supply crunch. sophia -- sophie kamaruddin is in hung -- is in hong kong. >> still set while the yen is set for a second week of losses ahead of the jackson hole. below 80 on the back of those afghans send about this as well. when it comes to stocks to watch japan, keep your eye on crypto. we will keep our eye on chip-related stocks. a warning that the shortage will continue through 2022. in south korea, chip stocks are under pressure. we are seeing the kospi way

lower. we do have the korean won handled once again. von futures are coming online. they are expecting that bond gains will sizzle out. we are keeping our eye on these solid earnings. those numbers are unlikely through the aussie. we have the aussie share market coming online. we are seeing bonds lose ground. we have kiwi stocks edging higher by .2%. holding losses around the 6:48 level.

friends coming online. this is let the to the upside here. the markets where the demand outlook also on the production front. libya said they will keep their eye on that development there. you have u.s. cascio's holding above 134. we have seen that push on the back of 130. the 10 year yield set for the first. >> traders weighing the hawkish fed comment. more clues on the timing of tapering. joining us is the multi-asset strategist. great to have you back. how will the fed said this more dovish tone?

>> at they get important to the member that even though there is a lack -- a clear lack of consensus among -- about when to start this taper, nobody is really hawkish here. we are not talking about ending quantitative easing or quantitative tightening. we are talking about the pace at which to reduce the current expansion of the fed balance sheet. if anyone was ashlee worried about inflation right now, you would not be talking about the pace of expanding the balance sheet. there will be a tone setting of recognizing this balance. something this big is not going to come out of chairman powell alone without the rest of the governance team with him, the board of governors. that means we should be looking ahead for more guidance. the market has put it significance on jackson hole.

they will really want to build a consensus here. >> we are already seeing some sort of tightening with the reverse repo facility. this shows the usage rising to new record highs. >> absolutely. this is what is happening. there is too much liquidity, that is pounding on the floor. when we look at bills out there, those are offering below with the fed offers. that pounding on the floor does not make the floor stronger. i think this is something we are already seeing. we are already seeing this tightening little bit.

a bit more of illiquidity market given that the fed is buying all these bonds, putting money right out there and giving it right back to the market. in that environment, stocks are actually moving higher. if you think this is a danger area, we continue to see pretty strong earnings and stocks because interest rates are going to be low for a long time. >> you see stocks moving higher. does that mean valuations at the moment will look like a bargain in a few moments time? if you're looking for decent opportunities, you have to search further down the market cap foodchain. >> maybe not even either. you need to be very weary on where you expect earnings to come through. i don't expect stocks to

outperform earnings like they were before. but also, i think with decent earnings growth we saw a fantastic earnings season. we saw companies raise guidance. we have also seen not as much follow-through in next year's earnings numbers. we saw some rise but decent earnings coming through is backing in. we have been normalized over the past year and expanding multiple to expect this. we don't need that. if we get seven to 9%, we will be pretty happy along the same path as earnings that are rising. >> evaluating the risk of another outbreak of coronavirus, perhaps a different variant of the delta variants getting worse, how would that way on potential lockdowns or another shortening of the outlook for

the global economic recovery? >> everyone should be worried about that in some way. i think it will impact the consumer end, perhaps the energy and a bit more than markets are prepared for now. it is a bit of what we saw today. we saw energy in the consumer stocks underperforming. you can chalk that up to more hawkish and us out of jackson hole. i think it is about of -- about a bit of covid fear. this is especially important for merging -- emerging markets. especially susceptible here. also, at the mercy of u.s. policy and inflation. they are certainly going to be remembering what happened.

this is something where countries that can't rely on and exporting of the goods that people need here which is semiconductors and metals and mining. those who need domestic consumption, india for example, indonesia, it is going to be a struggle moving forward here. especially with the rise of this variant. >> thank you so much for joining us. let's get some more on the situation in afghanistan as president biden has vowed to hunt down those behind the attack. take a listen. >> 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.

>> joining us for the latest is the white house reporter, courtney rose. some fighting rhetoric from president biden but as the u.s. pulls out of afghanistan and says it has this over the horizon defense capability, how realistic is that promised to make those responsible pay for this attack? >> that is really the question that will need to president's answer in the coming days. the white house press secretary said earlier today that nothing has changed about the august 31 of deadline. to remove americans from afghanistan. we are going to have to see how serious that threat is in the coming days. quite president biden also saying there was no evidence that the taliban has colluded with isis. what do we know about ongoing

conversations with washington and the taliban? >> the conversations the white house press secretary, jen psaki made clear today is that it is not a partnership. they are working with the taliban to evacuate americans and vulnerable afghans from afghanistan at the kabul airport. they are working to gather. the u.s. has been very clear to say it is not a partnership and more of a necessity to get people out of the country by the august 31 deadline. >> that was courtney rose. let's get to su keenan with the first word headlines. >> the eu's home affair chief says the countries need to come together and act to avoid a migration crisis in afghanistan. western countries were called upon to step up programs for the resettlement of refugees. she also said europe and united

states need to figure out how to better support afghans who remain in the country. vice president kamala harris meanwhile says she raised human rights concerns with the issue of imprisoning dissidents but the vice president failed to mention any specific commitments or to explain how the human rights record in vietnam is any different than that of china. quite 46,000 covid-19 cases on thursday. that is the most for a single day in over a month. this southern state reported a surge in infection that could threaten the safe economy which was steady in july as cases declined. almost 604 million vaccine doses have been administered but only about 9% of the population is fully vaccinated. sticking with india, the country has lifted a ban on the 737 max jet.

leaving china as the last aviation market. in aviation official says the decision came after their work no new negative reports on the jets. 17 other global regulators have allowed flights to resume beginning from last year. global news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. >> brian will join us to discuss the latest results and the outlook for the auto sector. it is time to taper. we will have more few just ahead, this is bloomberg. ♪

>> three of the u.s. federal reserve leading hogs are urging policymakers to slow asset purchases. kansas city fed president, esther george pushing an early taper to begin this year. she spoke to bloomberg about her outlook as she got ready to host the jackson hole symposium. >> this is a big committee as you know. one of its strengths is the diversity of views it brings to looking at a common set of data. that is a healthy discussion. you often see those differences emerge. it is a healthy sign for the committee to begin debate and deliberate on those issues as we judge when we make progress toward the objectives we set out for the economy. >> i am wondering if wall street is making too much of the idea

of whether you say something in september or november. is that cutting the policy to finally? >> think what we have been focused on and what you have seen is a commitment to communicate clearly to make sure that we are being transparent about the factors that are being considered for that transition as it relates to asset purchases. i think that is what has been happening. the public has been hearing those communications. 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. >> interesting story today about how wall street does not care as much about when you begin the taper as much as where you end it. what is your view on how fast you would want to get out of the qe business? >> i think it is important to get started.

the conditions of pace, timing, i am open minded to listening to the debates around that. i am less interested in deferring that decision. i think it is important to really center on when we believe the progress and the economy is sufficient to start that process. that is really where i am focused. in that sense i think we should get started this year so that we can begin to pair back the amount of accommodation, who wants to see how the economy unfolds after that and then down the road, be in the position to make decisions as the economy changes on what we need to do with our policy rate. >> would you agree that chairman powell is -- that tapering is not tightening and the two are not connected? the way that traders see it, you at this point, because of what

the chairman was saying, you're not going to start tapering. i wonder if you agree with the members of the committee who say we should get it done faster than we did last time. >> i think there are good arguments for that. depending on how the economy unfolds, the arguments ending the asset purchase will give the committee the flux ability to judge the progress in the economy. i don't think that is in anyway, canticle decision and one we can lay out today. whether it is a certain amount of months. the conditions that have been laid out in the guidance from the committee has been that we will have achieved maximum employment and price stability objectives when that rate decision is made. >> whatever decision you make about the pace of tapering, you're doing 120 billion a month right now. at what point would anybody even

notice in the economy? >> i will be watching for that. that will be at the point that begins because it is a tremendous amount of accommodation going into the economy right now. assuming communications have been laid out and are committee's 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, clarity around the factors that we judge pushing us toward our mandates, that that will all work out in terms of the economy possibility to absorb that. >> that was esther george speaking to michael. the delta variant is upending every model of success that has emerged in the past couple must. there were countries that were

once ranked among the best places to be during covid are now crumbling. joining us or the latest covid resilience rankings is rachel chang. rachel, what are the rankings telling us? >> in some ways people are saying the delta variant is a whole new virus. we have seen places like new zealand which was number one for such a long time plummet down the rankings. they have gone into one of the world's strictest lockdowns because of the infiltration of delta. israel and the u.s. are leading that vaccination rollout. every approach that has had some impact on the virus has been challenged by delta. question we trust that those highly vaccinated countries are doing a bit better? >> that is a concern but one of

the most optimistic scenarios is in the netherlands which is ranked number two. they saw that. the wave go up but it came down with very low fatalities. it did not really disrupt reopening. i think that is the best case scenario for places like the u.s. and israel right now as they deal with that delta surge. >> there were some countries that had a low ranking at the start of the pandemic and are still low now. what do know about those places that are really struggling? >> we saw the epicenter of the global out break shipped from latin america and now it is centered in southeast asia. the bottom five are all southeast asian countries. this has the highest per capita death toll the world. places like indonesia really surged. these are places that will continue to struggle.

especially now with a desire for boosters. we will see that inequality continue to work for this year. >> we have seen some people avoiding vaccinations anyway. one of the concerns has been the risk of blood clots from the vaccine. what do we know now question mark >> absolutely. the irony is that in some of these richer places, there are so many vaccines and people don't want to take them. the latest study from the u.k. was out of tenley people who received the astrazeneca scene, only about 60 developed the risk of blood clots. that is compared with covid. we know the risk of covid is much worse for your health and getting a vaccination. >> rachel chang who leads our consumer health and media coverage with the latest on that track. we continue to track the latest vaccination campaign.

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>> let's get a quick check of the latest business flash headlines. this australian detour -- retailer so global return around 2.3 billion australian dollars. that is the equivalent of 1.7 billion u.s.. the full your profit is 16%. revenue climbing 10%. 34 billion as customers spend more time at home. tell timeshares tumbled after the warning that a price that would hurt its bottom line and it was self an accounting problem. the fitness company also says it is slashing the price of its most popular bike to make the upscale products more affordable. peloton expects an adjuster lost of 305 million in the current

adjusted year. apple says it is planning changes to its app store that will result the class action lawsuit from u.s. developers. the agreement clarifies the developers can share purchase options with users outside of their ios app. it expanse the price points developers can offer for subscriptions in purchases. it also establishes a fund to assist qualifying u.s. developers. the toyota supplier warns that the chip crunch will likely last through next year. it has been hampered by a severe shortage of material. delivery times have surpassed 20 weeks and the debt the variant complicates operations from japan to southeast asia. we will have more on that in a moment. we will hear from brian you --

brian. the company beat estimates but the company is still waiting to turn a profit. that interview is coming up. 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.

>> china is a very important market to us. we are number two in china with our cadillac, buick, chevy and our joint venture. we have a very strong position in the country already. we are aggressively moving to introduce more electric vehicles. >> that was general motors's chair talking about competition in the world's biggest auto market.

research and development costs ballooned, marketing and other selling expenses climbed as well. this came in ahead of expectations. they also gave a third quarter sales guidance of 770 million. let's bring in brian. he is the vice-chairman and president. losses widening those losses that are continuing to rise. when can investors see a return? >> the china ev market is growing at a much faster rate then people expected. the penetration of the ev market is above 10% starting in june. much faster than anybody had forecasted.

that will spur the growth for us to capture the opportunity in the next few years. >> what is your path to profitability looking like? >> i think the path to profitability will depend on how fast they will ramp up the volume. with investment i would put in, we are much more confident in the higher number of deliveries in two or three years. that is when we start to reach profitability as well. >> you recently raised funds as well. how do you plan to deploy that? >> the funds we raised were about 2 billion u.s. dollars. the other 40% will be self marketing and then the rest will be used for manufacturing

international extension strategy. that will be used in its growth. >> investors seem a little skeptical when it comes to your plans. at least when it comes to the hong kong share performance. why are investors not buying into your growth story? >> i think it should look at the backdrop of hong kong since it relisted. i think we have been quite solid since the ipo debuted on july 7. i think what investors are looking at is whether we can weather some of the tech issues. i think as an industry and a company, we have a much more solid background versus internet companies and other outlets in china that are facing regulatory problems. >> we are picking sure we have the foundation to deal with the increasing regulatory oversight

with some of the key factors we are looking at right now. >> in terms of regulation, do you anticipate any more? >> i think there are quite a few regulations coming out from china, regulated anywhere from here to data security. this is ashlee supported by the government. on the other hand, you deftly want to make sure that the industry is regulated. especially when we deal with a large amount of data and consumer information. that is something i think they should pay a lot of attention to. we as a company have spent a lot of time focusing on those issues. i think those frameworks introduced will benefit coverage like ourselves that have already

established channels of fumigation with regulatory bodies. >> the entire auto industry right now is grappling with a shortage of semiconductors. how are you handling this question mark >> the semiconductor shortage is impacting all the players in the sector. if you look at the guidance for the third quarter liver numbers, it flags some of the impacts of the chip shortages. on the other hand, i think we are focused on technology platforms. we ashlee get a lot of support from our chip suppliers for the future growth in this sector. at the same time, the number of chips we needed to operate is

much smaller in scale compared to some of the larger ones. we are actually more nimble. >> does that mean you're not getting any of the impact of the global semiconductor shortage or where are the chokepoints that you're facing right now russian mark >> as i said, we actually already factored into our guidance with some of the bottle necking in the shortage. it is not an issue with one or two. we have close to 2000 chips in that vehicle. at any given time, there could be one or two chips. as a company, we need to deal with that more nimbly. our volume is still quite small. west actually -- we are actually very nimble. >> how long do you expect those one or two chips to last for?

we see a certain type of chip. >> we have seen more issues for tesla in china. will this benefit you at all? >> as a company that competes head on with tesla products, this has similar, smart offerings. i think we all could focus on the same issues. obviously, we tried to compete in a fast-growing market. we want to make sure we can benefit from any opportunities we can get. we also to make sure the consumers are still attracted to

this smart offering. tesla has been pioneering that. >> this month, you shipped ap seven outside of china. which other markets are you looking to expand into next? >> i think we will look at the other european countries outside of norway. i think norway, the surrounding nordic countries have good infrastructure. i think those countries will be the ones we look at for the first time. >> thank you so much for your insight. he is the vice chairman and president there. let's get to su keenan with the first word headlines. >> we start with president joe biden who has vowed to hunt down those responsible for a series of explosions outside of kabul's

airport that killed 13 u.s. service members and at least 60 afghans. the pentagon has suicide bombers and he is expecting more attacks. this as the u.s. continues its plant withdraw all american forces by tuesday. >> for those who carried out this attack, as well as anyone wishes america harm, we will not forgive. we will not forget. we will hunt you down to make you pay. >> meanwhile, a meeting between president biden and ended -- an israeli prime minister has postponed. they talked about a strategy -- strategy concerning iran which both countries say has been spitting up his nuclear program. the events in afghanistan led to

the postponement and the white house says the meeting will take place later friday. meanwhile, boris johnson has described the bomb attacks at kabul's airport at -- as barbaric. oh well extending his condolences for the americans and afghan lives lost, johnson says u.k. lifts will not be stopped he declined to say when the british effort would end. french president emmanuel macron has urged ireland to join in establishing a minimum corporate tax rate. ireland's economic model it been built on low rates to attract international firms and it has so far refused to sign the per limiting -- culinary accords which calls for a minimum rate of 15%. ireland's corporate tax rate is currently 12.5%.

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 su keenan, this is bloomberg. >> up next, the outlook for china's biggest thanks look particularly cloudy. this is bloomberg. ♪

>> let's see how we are trading

in tokyo, sydney and seoul. >> policy closing in on the jackson hole gathering. it is japan that is leading those declines. you have fast retailing wayne's. you have discretionary tech. we are seeing the kospi under pressure but it is seeing its first weekly rise. a check on how bond markets are reacting this morning. this is affirming the kids were steam used to be maintained in japan. we are seeing aussie bonds under pressure the head of retail sales data.

switching on the board. we are seeing the korean one leading those declines in the region. this as we have the be ok rate hike to consider for the currency. you have the aussie yen holding below 80. and offshore yuan ahead of the chinese industrial profit. slipping from a six week high. the cabinet lineup being announced this friday. this comes as the country becomes the southeast asian covid hotspot. it will likely continue that ongoing ship shortage that is hurting some of the players in that space. i want to highlight marine shipping stocks. they have had a very solid month. they got an upgrade amid the ongoing rise in containers. >> those supplied chain

disruptions being -- being felt across the market. moving to the banking sector with three of the four state owned banks and recovery so far. recovery from the pandemic close. more news on what might be on the way. what is the outlook as the banks report the second quarter and first half numbers? steve: we will be looking at provisions and margins. have gotten signals that the pboc regulators in china are addressing the slowing signals and that there could be an encouragement for credit momentum. it also cuts to the reserve ratio. this is welcome news for the banks in the sense that you can open up the loan book but the problem is who are you going to be asked to lend to? we are hearing that they want to lend to smaller sectors of the pboc -- the pboc wants big banks

to lend more in the private sector. that opens up the prospect of more nonperforming loans and a risky economy right now. especially in the property sector with the ever grand prices. there are some definite risks if you're opening up your loan books to more risky parts of the economy. net interest margins could take a hit as well. if they are indeed being asked to cut further their loan terms for these companies. there are definite risks. big state banks account for 89% of the yuan increases in the first half. lower tier banks attributed more than half of the increase in nonperforming loan rise. npl's is what we will be watching for. we will be watching for the provisions of the nonperforming loans and how those net interest margins will be squeezed.

those margins squeezed because of price cuts for lending to more vulnerable parts of the economy. >> today's numbers might look good on a year-over-year basis but is that going to hide some of the risks you were talking about? >> you might get some headline numbers that pop. net profits could be good at these banks because they're coming off a very low base effect from the first half of 2020. bloomberg intelligence estimates that the first half of 2020, the big four or big five banks combined profits of about $533 billion. the first half of 2021 is estimated at 602 billion. it is not yet back to the level of the first half of 2019 which combine profits of 606 billion. we have to look at the impact of this -- these rigell tory curves as well as property loan caps and the systemic risks --

systemic risk to ever grand. >> stephen engle there. let's take a closer look at some of the china market. we put some interesting macro models that really show the outside impact that the yuan can have on global markets. every 1% in the offshore one can't interview to an -- this move. the korean won and the aussie dollar, those three currencies are among china's biggest trading partners. the one having an effect on the euro. the one can really pack a punch when it comes to moving the needle in other countries. >> this study by our bloomberg analyst, it caught my eye. we continue to talk about china rising and growing economy. you mentioned how it can really have an impact in the currency space but perhaps also in the

equity space. we have talked about china taking one third of the emerging markets and why that is a really big deal when they have this regulatory crackdown. when it comes to the broader global markets, perhaps not so much. the world index performing inversely to chinese equities in times of relatively extreme performance. when you saw the csi 300 doubling between november of 2014 and june of 2016, will stocks only rose by about 2%. for have something to keep in mind when you're talking about how big china is for the global market. you can have more on the markets, also more on the day's big newsmakers. tune into bloomberg radio and get in-depth analysis from the debris team, broadcasting live from our studio in hong kong. plenty more ahead, stay with us. ♪

to those that 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. >> we know the window of time is closing and it could be 10,000 people reporting to safety but i

would like to make it clear again today that we will not forget those that are not going to be brought to safety by the airlift. >> we are continuing that work in as fast and efficient a manner as possible in the areas that remain to us. that is what we will do. >> world leaders speaking after the deadly bombings outside of the airport in kabul. dan joining us now from hong kong. what do these terror threats mean for beijing when we have seen them in the last few months making overtures to the taliban as well? >> china as much as any country

has expressed concerns about terrorist elements in afghanistan. the primary focus is on a group that has been attributed to some attacks. that has been china's main focus but they are as concerned as any other country on ensuring that afghanistan does not become a breeding ground for terrorism as it was in the past. they are looking to do it over they can to prevent that from happening. there is a debate now about how you go about doing that. particularly with the americans leaving the country. do you engage with the taliban and afghanistan and work with them to try to illuminate the threat or do you try to put sanctions on and isolate the regime? that could lead the situation to deteriorate even further. >> over the last month, china's

belt and road project suffered a suicide bombing. nine chinese workers killed when their bus was targeted on a belt and road project by the pakistan taliban. what does this mean for china's economic interest going forward in afghanistan now that the u.s. security guarantee is no longer there? >> that is a big question going forward. china has invested about $60 million in pakistan. they are kind of on the front line. it shows they have a very keen interest in stabilizing the region. they are looking to move in and engage with the taliban, work with the taliban to try to stabilize both afghanistan and pakistan. whether that will work is very unclear. the security situation there is very volatile.

china is essentially trying to go in there with checkbook diplomacy and they're going to try to get the country stabilized that way. whether that will work is another question. the u.s. spent 20 years in afghanistan fighting militarily. some on the chinese side have argued that the civil war has only led to a worse security environment and with the taliban in charge, that could stop. time will tell on that. >> that was dan. let's get a quick check of the latest business flash headlines. the petro china profit surge helped reverse the biggest ever loss. china's top oil and gas producer posted net income of $8.2 billion. that was his best performance in seven years. gas and new energy will make up two thirds of its portfolio within 14 years as it aims to

cut emissions to near zero by 2050. the profit plunge of 16% in the first half from a troubled property developer more than doubled. they raised about $3.2 billion from profits. let's take a look at what to watch in china. sophie is in hong kong. >> we have more earnings to look at four. including from carriers in china. byd also do to report. it was one of the ev companies called in to discuss new energy cart of elements. we are watching to see -- that is down from its february peak with internet as well as education sectors about to be

hard-hit. >> our market coverage continues as we look ahead to the start of trade. standby for bloomberg markets china open. this is bloomberg. ♪

>> one of the most significant changes right now iss explos in mobile video, and we want to take advantage of that. ♪ yvonne: 9:00 a.m. in beijing and shanghai. welcome to "bloomberg markets: china code david: counting down to your last sessions of the week. let's get your top story today -- president biden promising action after explosions in kabul killing 13 u.s. service personnel and at least 60 afghans. >> we will not