>> welcome to daybreak asia. >> we are counting down to asia's major market open. >> good evening new york. now our top stories this hour, asian stocks sets to climb after jay powell signaled a conscious and two pandemic era supports.

hurricane ida slammed the u.s. gulf coast as a catastrophic category four storm, threatening a devastating storm surge, power outages, and destruction. the u.s. vows to keep striking targets -- isis targets. let's take a deeper look at jay powell and what he said in his speech. basically, he said substantial progress has been made, the fed is above its 2% inflation target . morgan to go on jobs. however, that does not mean they cannot start tapering now. he may distinction, we are going to taper and it does not necessarily mean that we hike rates. thinking of higher bars, that is a bigger focus on friday's jobs report. it is not quite as strong and a lot of people are saying that if it comes in stronger, that can be an issue for the markets. haidi: also, front of mind for

everyone is the situation with the risk and chaos in afghanistan. we heard from the biden administration that they permitted committed to countering the impact and influence of the islamic state in afghanistan. this as we heard in the last few hours that u.s. authorities managed to stop potentially what would have been another suicide bomber attack, a drone stopping a vehicle on its way to kabul airport. this coming days after that attack that killed 88 people. we will continue to watch for that as a point of concern for a lot of people, including for the markets. kathleen: a lot of criticism from many corners being heaped on the president. we will see how that is looked at. also, how does the government handle hurricane ida? 100 50 mile-per-hour winds, hitting at a time when virus cases have surged in this area.

there are people in hospitals already maxing out those levels on ventilators. people are expecting power outages. the governor of louisiana saying today that the government has been sending generators. however, yesterday he tweeted out, this could be one of the strongest, worst hurricanes to hit louisiana since the 1850's. interesting that unlike katrina, we are hitting the 16th anniversary of that hurricane, that was about water. this is about wind. one of the reasons why the estimate for damages is far less then a damage we saw on katrina, where the water surges were such a force of destruction. haidi: a source of our concern for investors, particularly investors in china, a bad debt manager getting a limbs in today's results that were delayed. the numbers were not pretty.

we were not expecting them to be good. $15.9 billion in the record losses leveraged at more than 1300 times in 2020. they did manage to return to profit in the first half of this year. they are saying by shedding those subsidiary businesses, they will ensure operations for the next 12 months. some of these related -- we will see how some of these related stocks react. let's look at other asian earnings. sophie: in china, taking a pulse check, we will see the pace of earnings, a report card, slowing this week after a peak last week. today, we have bank of china as well as meet one due to report. banks have largely returned to pre-pandemic levels but we will be watching for credit risk. the aussie earnings season is looking to wrap up.

we have casino earnings on tap and we did have fortescue reporting this monday. we do have it reporting and annual profit report that came in at a record given that we have seen strong prices but that took a turn in the july as china has curbed its steel output and we have seen fortitude -- we have seen shares down on iron. i the disrupting operations in the u.s. southeast. oil prices extended gains after the best week since june 2020. check out u.s. gas futures, jumping early price action with october delivery. kathleen: looks like a lot of shutdowns in refinery and productions, no wonder we are seeing the spices moving. let's get live pictures of new orleans. so far, it is not look so bad. we will see how that continues. for the latest, we are joined by

our weather reporter. in terms of wind speeds, in terms of the breadth of this hurricane, 140 mile wingspan -- wind spanned, -- wind span, how bad is it going to get? >> there are a lot of pictures coming in of flooded highways and be have gotten a few reports of levy overtopping impact in my parish south of new orleans. we are beginning to see that picture of a widespread flood event on top of the wind problems. haidi: we saw gasoline prices jump on fears that damage will be done to find raise. what are the disruptive elements we are talking about? are also seeing reports of weeks without power for some residents. brian: when they finally shut down, it takes a while to get back up online. the hurricane came into port, it

took a direct hit, 150 mile-per-hour winds. the damage will have to be assessed. similar hurricanes in the past have seen gasoline prices shoot up across the united states simply because the supply is not there. kathleen: in terms of generators, power outages, bloomberg had a story today about there could be people for three weeks without power. what is that going to mean for people on -- people in hospitals? brian: it is difficult. the hospitals will probably take the first priority to get the generators and many hospitals do have generators themselves. we could see widespread power outages lasting a month or more. haidi: brian sullivan with the latest on ida. let's get the latest to afghanistan. our bloomberg editor joins us. as huge part of the u.s.

continue to mourn that died in the last attack, we are hearing that a drone managed to stop what would have been another suicide bomber attack? >> there have been consistent warnings for days by the biden administration, especially after the initial attack, which killed 13 servicemembers in kabul last week, that isis is active in afghanistan and that the threat situation israel. -- threat situation is real. that is what we saw on sunday one in airstrike took out what was described as pretty much a vehicle filled with explosives on its way to kabul airport. of course, that has been the dreaded situation as the u.s. concludes this withdrawal from kabul, which is supposed to wrap

up on tuesday. kathleen: experts are saying, there was a drone attack, but that is a very small step to take that without troops on the ground that can do the nighttime raids and all the work that needs to be done, this is not going to stop future terror attacks and this is a criticism heaped on the white house. tony: that is one of the criticisms. there have been criticisms from both democrats and republicans. there were several republicans who came out today, or i should say on sunday, two level exactly that particular -- to level that particular criticism, that the u.s. should have kept a small force on the ground in afghanistan, and this argument of what the administration likes to call over the horizon sort of surveillance and neutralization of terrorists in afghanistan is

questionable. it is too early to tell, but the point, of course, at the same time is that the u.s. went into afghanistan to take out al qaeda , which had conducted the 9/11 strikes or terror attacks on the united states. kathleen: thank you so much. investors, of course, digesting jay powell's speech at jackson hole. what was the big takeaway from jay powell's speech? >> i think there is a sense that the fed is inching towards tapering, but there was no sense of timing or pace or composition from his speech. the tone was cautious. i think there were two key points. the first was his remark that employment levels are still 6

million below where they were in february of 2020. we know how important bigger markets are. the second point was, in terms of the inflation story, that is down to the supply chain blockages happening around the world, that should be temporary and it would be a mistake for the fed to hike interest rates on the back of that. the message was, i think, tapering is coming but they are not any a rush to do so. kathleen: what is the next -- haidi: what is the next big development? enda: i think given the two key benchmarks, we will have to see that jobs market over the coming months. we have the jobs figures coming on friday. we are going to have to keep an eye on longer-term inflation expectations. the supply chain -- they continue to say that supply chain stock is temporary. retailers are saying it is going to last about into next year. kathleen: i am sure jay powell

is watching them closely. what is it mean for emerging markets? we have been concerned about spillover. what is going to happen next? enda: i think it takes some near-term pressure off. the narrative had been at the u.s. economy was strong and the u.s. might start removing some report. when you listen to the speech, not only is he conscious on the tapering, but there is no hint of an interest rate hike anytime soon. if you are an emerging market central banker, you have time underside. you know there is not a deep fed tightening coming up that would take pressure off her own currency and investor flow. near-term, there will be a breathing, a sigh of relief at the fed's message. haidi: let's get you to vonnie quinn with the first word headlines. vonnie: anthony fauci says the door is open to administering booster shots in the united states sooner than the eight

months after a completed covid-19 vaccination. the nation's top infectious disease expert says he is open to a variation on the timeline based on data. the u.s. has outlined a plan to start administering booster shots on september 20 as vaccine efficacy has shown to weaken over time. the by set up china's national health information has rejected a u.s. report blaming beijing for stonewalling an investigation into the origins of the coronavirus. in a statement, the official said, china opposes politicizing the matter and the rest should treat origin tracing as a plan to take matters. the chinese vice foreign minister says the findings include no scientific basis nor credibility. libya's oil minister tells bloomberg to the head of the country's national oil corporation has been suspended pending an investigation into whether he violated policy.

he traveled overseas on a business trip without getting the necessary approval, in violation of mr. policy. this according to a letter seen by bloomberg. the noc says it has installed and acting chief. it as there, the actor known for his role as the lovable blue grand -- lou grand has died. he is the third mary tyler moore alum to die in recent months. he was 91 years old. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. kathleen: thank you. still ahead, we take a look at

the week ahead and we will get more insight on markets with jenna lee. this is bloomberg. ♪

>> the criteria that we put in the statement about what would it take for us to begin tapering , i think we are pretty much there. >> we still have a fair amount of energy and momentum. i think we can do our tapering faster. >> let's phase out the purchases and let's give ourselves some breathing room in 2022. >> keep it simple. let's start this process. >> it may give us more flexibility down the road on our decisions. >> the timing and pace of the

coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of interest rate lift off, for which we have articulated a different and substantially more stringent test. haidi: fed officials speaking from the jackson hole symposium. our next guest says the tapir will lead to changes in ca volatile -- and see a volatile [indiscernible] jenna, great to have you with us. you take a look at the fed funds rate, investors seeing left off when it comes to the rates in march 2025, or potentially beyond that. it was not a huge magnitude of a move after jay powell's comments. did he manage to telegraph a consistency in a balanced way for market?

jenna: honestly speaking, we are looking into the early cycle into a reflection point. it is still early to tell when and how fast tapering will happen. jay powell's speech was a relief for everybody in asia, especially korea. the korean government is moving ahead with the preempt of measure of increasing interest rates. -- preemptive measure of increasing interest rates. haidi: we have seen currencies not seeing the best week of the year on the comments of jay powell last week. does that suggest that any expectations for the taper for ems maybe overdone? -- may be overdone? jenna: the way we see it is based on mostly short-term impact and mostly done by the investors coming into korea.

i've used to manage $100 billion in the u.s., getting into and em -- en em -- an em was a play. if i were to china in, you are looking at a bigger move of money from foreign investor institutional's rolling out -- rotating out of korea or some regional markets into a developed or dollar-based asset. kathleen: i want to follow up on something that you said that i appreciate, because the narrative of the markets as this taper is going to go slow, don't worry about rate hikes, at some are saying that markets are underestimating the risk that if jobs pickup -- we are looking at that friday jobs report -- if inflation stays higher, if it is not temporary, it could come more quickly. is that what you are referring to? if that is what occurs, what

does that do to your investment outlook? jenna: you're pointing directly at the pivotal inflection point macro economics indicator that we look at. the labor markets can pick up. it is picking up. in fact, i'm having trouble hiring talent here in korea as well. you are looking at things that are picking up and when that paces out, you can see a sudden change in that movement or signaling. as an investor, you should be on the critical lookout in the next three to six month term, having a diversified portfolio would help. i have suggested over a previous interview that you should roll out -- lower exposure to emerging markets. when that inflection point hits, your em portfolio portion will

get impacted first. kathleen: other people have been saying, i emerging markets, or don't buy them because of evaluations. when you look for a hedge or a place to go, i know you have been watching people doing vigilant investing, that kind of thing, but worth should they go? if i'm going to watch out for the fed to be cautious, where should i put money? jenna: an asset class that is popular is real estate. i can tell you, in korea, the correlation between stock market and real estate are very high. unlike in the u.s. that is one thing i'd noticed after i moved -- one thing i noticed after i moved to korea. it is interesting because the apartment complexes in korea are very structured, it is more like a stock in the way that you can predict the outcome, predict the income level, and how the macro movement can push or pull

projects. korean real estate is interesting, but outside of that, you should look at -- stefan lee into alternative asset classes -- definitely into alternative asset classes. not fond of materials as you are going into an early cycle. we are building out of the recovery cycle into the early cycle, where you can expect more services to pick up rather than goods or materials. but think about more mature and product oriented industries. kathleen: i think people who are worried about inflation are saying, we are moving from that services cycle, that is going to push inflation higher. fascinating conversation. aim founder and ceo. you can get a roundup of the stories you need to know to get your day going in daybreak.

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>> a quick check of the latest headlines. four year net income -- record shipments, earnings and cash flow over the line out here, every election of strong customer demand. phq reported strong results on the back of surging demand from chinese filmmakers, although the outlook for iron ore remains clouded by china's efforts to bring in steel production. for the pack return to process

as china's recovery from the pandemic stowed demand for transport, fuels, and classics. their profit rose to $6.2 billion, reversing a loss from last year. they aim to increase for more than $60 billion in the second half. kathleen: now we are counting down to the start of trade in tokyo and seoul. we are some big stories we are watching, starting with korea, why it t ntb reporting's of south korean military will hold joint drills with british and u.s. naval ships off its eastern coast and south korea is expected to become the first country to pass a law ending apple and google's domination up payments on their mobile platforms, setting a radical president for their app store operations around the world. let's look at japan because we are watching out for retail sale us, a look at the consumer later this hour. a push to consider mixing astrazeneca's covid-19 vaccine doses with those developed by other companies to speed up japan's vaccination efforts. officials investigating the

death of two people who were given moderna vaccine from batches that had been suspended. we will have more on the challenges of japan's vaccination roll out next. this is bloomberg. ♪ so many people are overweight now and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now there's golo. golo helps with insulin resistance, getting rid of sugar cravings, helps control stress and emotional eating and losing weight. go to golo.com and see how golo can change your life. that's golo.com. ♪

>> this is "daybreak: asia." hurricane ida barrels into the louisiana coast to, making landfall as a catastrophic category four hurricane. it packed winds of 400 -- 140 miles per hour. the storm surge threatens to inundate new orleans with fast flooding, testing its levee system. there is a reported more than 450,000 homes and businesses

without power. the storm hit on the 16th anniversary of hurricane katrina. u.s. motorists could see higher costs at the pump in the coming days due to hurricane ida. seven refiners shut about 12% of the nations fuel making capacity ahead of the storm. refiners might suffer damage or not be able to get power for an extended period. there are takers ready -- tankers ready to take across the limit. a u.s. drone -- according to u.s. central command. the press reported an afghan official saying three children were killed in the strike. a came shortly after u.s. national security advisor jake sullivan says there is a still serious danger in kabul, where a suicide bomber last week killed

at least 88 people, including 13 u.s. service members. president biden attended the dignified transfer of the troop remains. sydney has a record number of covid-19 cases. they are battling to contain the delta variant. the state saw a high of more than 1200 infections on saturday despite immunization drives and a lockdown since the end of june. new south wales is about halfway to a vaccination rate of 70%, app which point they will loosen curbs for -- curbs. singapore is outpacing vaccination in developed economies. they are looking to have quarantine free travel. they have triple social distancing measures than many capitals outside asia.

global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: japan may consider mixing astrazeneca with other vaccines. this as investigators are investigating the deaths of two people who had gotten shots. let's start with the maternal story. there are a couple of different things going on. what do we know? >> we know japan has suspended batches of the moderna vaccine, not produced medically or in the u.s. -- produced the mastech lee or in the u.s. -- produced domestically or in the u.s. there is no immediate clear

safety issues identified yet but out of an abundance of caution. authorities will be vigilant. they are looking for adverse reactions. they are looking into the deaths of two men in their 30's with no known pre-existing conditions that died within days of receiving shots of the moderna vaccine. not in the batch in which foreign bodies were identified, but made in the same system around the same time. authorities caution they have not identified the reason -- the cause yet. kathleen: i want to ask you about japan mixing astrazeneca with those from pfizer, moderna and others. seems like this could get more people vaccinated. what do you know about that and what kind of approval does it need? sophie: obviously things like

the moderna issue, you would worry about the impact on vexing hesitancy, but in japan we have not reached that point yet. we are at the point where demand for the vaccine is outstripping supply and a lot of issues, and tokyo as well. the vaccine minister asked the health ministry to look into whether the mrna based vaccines could be combined with astrazeneca down the road, to help increase the number of people who could reach an unity faster. that is -- reach immunity faster. the elderly in japan are comprehensively vaccinated at this point, but the younger generations, middle-aged and below are not fully vaccinated yet.

this man cannot make the call by himself, he has to ask the health ministry. but all three of the vaccines have approved in japan, astrazeneca the only one manufactured domestically. haidi: the health minister saying we are unlikely to see an extended state of emergency lifted on the 12th of september. what are we seeing is the cause of the spread at the moment? sophie: the cause of the spread is essentially dominance of the delta variant, making up well over 90% of cases. that is according to projections from experts. as states of emergency are prolonged and more states of emergency are added, certainly in the capital, you get the sense that people are getting tired and venues such as restaurants and bars, while they have been quick to comply last year, now patience is running

out. compliance could become low. it remains to be see what the government could roll out on top of the state of emergency. we have an election in the next couple of months. will we see the government trying to add stricter regulations within the powers they have? in japan, the constitution allows freedom of movement. could the government crackdown more or offer more subsidies before the election to try to encourage people to have good behaviors and get paid as well? we will have to wait and see. kathleen: you certainly told us what to be looking for. thank you. let's get over to sophie kamaruddin. there is so much on the market's plate this week. jay powell, virus news, afghanistan. sophie: ahead of the open in tokyo, looking at nikkei futures in tokyo, 8.3% weekly rise.

range bound below 110. this following powell's remarks which fueled the first week of steepening in the u.s. yield curve since july. we have futures taking slightly higher in the asia session. over at morgan stanley, matthew hornbeck sticking to his bet to into the year at 180. the bond market will be counting down to see how the direction for yield will pan out. we also have the chinese earnings season starting to wind down. very much in focus this monday. we have seen shares falter since the crackdown intensified in china, although some shares jumped 50% last week to gain. but the tech rally did fizzle out at the end of last week. that relief might not be sustained. beijing's focus on data

protection. we are staying cautious on earnings growth, the new economy sector in china until there is clarity on when we will get a stable regulatory regime. haidi: thank you. let's get the latest when it comes to the bailed out chinese bad debts. releasing a long overdue financial statement and the numbers are not pretty. it posted a record $15.9 billion loss for 2020. let's get over to our chief north asia correspondent in hong kong. the number is pretty eye watering. stephen: yes. good news and bad news, we knew the result would be bad, they have delayed since march and that's why we had five months of turmoil, and questions about other this is a company that was too big to fail and if the government would come to the rescue. we knew a little more than a week ago that they did get that bailout from state backed groups

, and eventually this company will be handing over control. it has been a roller coaster ride for bondholders and the shares have been suspended for some time. $16 billion loss for the full year of 2020. that is a big number and the leverage hit more than 1300 times. some of these other numbers are popping as well. shareholder equity slashed by about 85%, over one billion yuan in impairment reported. 7.5 billion yuan loss in financial assets. there is some good news, they did return to a profit of 158 you and you on in the --yuan in the first half of the year. but the car is far below regulation as of june 30.

a year prior, it was 13.2. regulators demand a minimum of 12.5% for the capital adequacy ratio for bad loan acid managers. -- asset managers. the rescue package is a nice bandage for their issues and that's why there are divergent opinions coming even from credit rating agencies. moody's last week cut its credit rating and put it on watch for potential further downgrade, but fitch revised the ratings watch to positive from negative, citing the extraordinary support from state backed companies. kathleen: how long will the state backed companies be patient and/or have the chinese authority behind the scene saying we can't put out support publicly but you can, so please keep doing it? is there a place where the rubber meets the road? stephen: there wasn't a lot of

details on the rescue package and plan forward, other than huarong saying it will be disposing in the near future of non-core subsidiaries. did not give a lot of details on the ins and outs of the rescue package and what will happen when the other company takes control. but because of the bailout and disposal of asset sales, they can have an insurance that operations can continue for at least 12 months. that's the only guidance they are giving, they will be a going concern for at least 12 months. however, the chairman in a statement did say we have learned a very harsh lesson. haidi: stephen engle in hong kong. speaking of companies seeing a bit of strife, take a look at crown resorts. we are getting their full-year earnings at the moment. not issuing a final dividend per

share. theoretical. crown resorts reporting a four-year loss of 200 ixia $1.6 million. -- four-year loss. their flagship casino called into question, showing shortcomings as it continues to make a final pitch to save that property. we heard from the ceo -- flag ceo saying a potential merger is still standing up, including that melbourne casino. the inquiry report is due out in october. there's a separate inquiry when it comes to the perth property. that report is due out in march

2022. watch for crown resorts when training starts in sydney. lots more to come. this is bloomberg. ♪

kathleen: a big week ahead on the economics front, we will have the august jobs print, after jerome powell's better-than-expected labor market recovery.

traders are watching closely china for the impact of the delta variance. the latest virus outbreak for the country likely to show up quickly in the -- clearly in the august pmi data on tuesday. let's get to our next guest. richard, can we make that assumption? jackson hole, everybody has agreed it is a dovish taper, does that mean we are saying at least for china and asia, certainly china is the driver now and are you expecting purchasing managers index that will show a green light or a red one? richard: expectations are low for pmi numbers. the underlying reality is china has been flying the last couple of quarters. that is a challenge to asia mostly, rather than the on-again and off-again debate about when the fed will taper. tomorrow's numbers i think will validate that you that china

structurally is weaker than it was. also it is continuing to try to tackle covid in a zero covid fashion, meaning ongoing disruptions to economic demand and activity, to supply. i think that is in the market's mind even as we continue to digest the outcomes of what is happening in the u.s. kathleen: in terms of what you just mentioned, what kind of purchasing managers -- are you expecting and the idea that the governments are saying we got to get through this? like the rbnz said last week, maybe we will move our rate hike to october because you have to deal with it. is china's number on the pmi going to be strong enough to let the pboc maintain this stance where they don't have to do a lot of these things? richard: i think probably the pboc would be happy if they did not have to do much more. they do have something of an easing bias and we expect them to continue to give us a little

bit every so often on that to keep growth and credit roughly in line gdp. i think the issue with china is not just what the pmi numbers will say and zero covid, but this issue of underlying structural change. big changes in regulation in the tech sector, which has been a meanof growth. a big shift in the way think about income distribution and wealth. obviously the demographic issue has become more pressing in the data we have to this point. china has a really big structural agenda going on. i think it is making policymaking quite hard and growth will continue to slow because of that. haidi: when it comes to the impact of deltek, we saw the be ok -- of delta, we saw the bok move last week, and the rbnz said they were pulling back

because of timing of communications. will policymakers continue to go ahead even as cases climb? richard: they will probably go ahead, ultimately it will take a brave central bank to move for the first time in the middle of a covid outbreak. the bank of korea did it last week and that was significant. the first major central bank that has moved has been in asia and it has taken rates up, it shows how different this period is from the taper tantrum. also it's not just volatility, but the extent they push central banks to go later, they are potentially dooming when they start to move, they are behind and they need to go abruptly potentially. haidi: when it comes to australia, are you expecting the economy here to bounce back from the latest lockdown the way it an edge to -- managed to from previous restrictions? richard: the fundamentals are

very strong so the potential is there. i think the difference is movement restrictions are likely to be much longer-lasting. they -- we are likely to come out of this with less of an aggressively leap than coming out at a slower fashion. we are talking probably into next year before we are thinking about the economy operating again in the sort of strong conditions we saw before the delta outbreak. haidi: richard, great to have you with us. tune into bloomberg radio to hear more from our daybreak team. we are broadcasting live from our studio in hong kong. kathleen: let's get you breaking news on japan retail sales, coming in a bit stronger than forecast. the survey was looking for 2.1% year-over-year, it is at 2.4%,

on the month up 1.1% instead of the forecast of 0.4%. it is interesting, department stores into supermarket sales not as strong as forecasted but still strong enough to have a result that is positive, in spite of the slow vaccine rollout. it looks like japanese consumers are managing to add to the economic outlook. plenty more to come. this is bloomberg. ♪

haidi: fortescue reported a strong earnings report, saying annual profit had more than doubled to a historic high, but when it comes to the outlook for iron ore, that remains clouded. joining us for details is already sydney deputy bureau chief. china looking to still production for environmental issues. what are the applications? >> this caps an amazing run for fortescue the past decade. built from scratch to profit in excess of $10 billion, an amazing run. like you said, headwinds, iron ore prices retreated sharply

from the records earlier in the year. china was going to clamp down really hard as they try to improve emissions standards. so the chance for this record run to continue, it is not as clear as it was, and that being said, this is traditionally a strong period of construction and that iron ore demand will probably remain slow. no need to panic. i think the run can continue for a while yet but we need to keep an eye on still production. kathleen: -- on a steel production. kathleen: and we are seeing the fed saying we will not be too aggressive on tapering, that seems to be one factor and the other one is the virus and is it allowing countries to continue to open up quicker or more slowly. james: yeah, that is right. iron ore is very much sensitive

to trends in the global economy, it is similar to copper in that respect. the way delta develops around the world will be keep you fortescue has been -- will be key. fortescue has been planning long-term. traditionally, they are at the lower end of the quality curve, but they will lift that quality and they are betting that as a steel makers -- they will seek to buy higher-quality ore and that's what they are looking to tap into in the future. haidi: our sydney deputy bureau chief there with the latest on fortescue. later, we will discuss results and the key china outlook after the profit estimates. that is having it to: 40 5 p.m.

in sydney. -- 2:45 p.m. in sydney. sophie: we are watching fortescue and crown, this on the casino operators result saying it will not pay dividends and is no longer in talks with oaktree. we are keeping an eye on japanese vaccine place after a good now a suspended the administration of some moderna shots and an investigation into safety concerns. the local distributor in japan. in seoul, they say there is no decision on jansen related vaccine talks. kathleen: coming up, china's megabanks recover from their worst profit slump in a decade. our guest joins us to break down the results. plus, the market outlook from allianz. the power speech in jackson hole gives a lift to the week.

and market opens in sydney, seoul and tokyo. you got to keep it right here. this is bloomberg. ♪

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♪ kathleen: welcome to "daybreak: asia." i am kathleen in new york. >> i am sophie kamaruddin in hong kong. haidi: and i am haidi stroud-watts in sydney. gasoline futures and oil advance after hurricane ida slammed on shore in louisiana, disrupting

energy supplies in the u.s. plus, after a five month delay, we finally get a look at huarong's annual report. there is a silver lining. let's kick it off. >> we are taking a look at what is going after asian stocks cap to the best week since february. the nikkei 225 rose 20%. gains continue for the topics and the nikkei this morning. we are seeing the yen trading range-bound, below 1.10. keeping an eye on more eco-data. we have retail sales from japan. we did see a pickup in those numbers. in south korea, we have a 30 year bond option do today. the kospi gains. the korean won is climbing up against the greenback.

in sydney this morning, we have the aussie share market opening higher. the aussie dollar is near a one-week high. pressure on the aussie dollar amid a slowing china growth. we will keep an eye on some earnings sydney. we have the likes of this company, annual profit at a record. and crown resorts on the back of its results. fed chair jay powell signaling a gradual taper. they are sticking to the calls for the u.s. 10-year rate to be higher by the end of the year at morgan stanley. hurricane ida is bearing down on the southeastern region of the u.s.. oil prices gained more than 1%.

we haven't u.s. nasdaq features from being, over by 1.4% on the october delivery when it comes to u.s. gas futures. asia oil refiners as well, we're keeping an eye on them on the back of this hurricane. kathleen: thank you so much. let's bring in david wong from alliancebernstein. we got powell, according to the markets interpretation, on the back burner. you are watching inflation very closely and what it means for relative valuations in different countries. what if inflation shows it is not going to back down easily, does that change your outlook? david: certainly from the perspective of the 10 year yield, we are not expecting too much in the way of significant policy changes for the end of the year. i think given that several fed

governors came out making more hawkish comments about ending qe as quickly as possible, powell has the opportunity to signal the same, but he did not. and we think our base case scenario of seeing qe starting to taper by the end of this year , but really only starting to see it in significant volume next year is an appropriate base case. kathleen: go ahead, finish up. [laughter] david: kathleen, i think we are thinking from an equity market perspective, there isn't a ton to worry about in terms of valuation multiples being reduced further from what we have already seen this year.

kathleen: i want to ask you about japan because you are pretty bullish on japan. what do you base that on, and what is going to drive that? pretty independent of the fed, because the way japanese economy and inflation looks, there is no reason for the boj to do anything right now. david: that's right, we don't have a ton of inflation coming out of japan, but there are a few different factors at work that make us incrementally more positive on that market. we are seeing vaccination rates hitting around the 50% mark by the end of this month. we are also seeing very light investor positioning. when we look at earnings growth, it is basically just as strong as what we are seeing out of markets like europe or even the u.s., actually quite a lot to like their, especially when we see continued structural change in terms of corporate governance and improvements to return on equity.

haidi: i want to take you to our question of the day as we are still mulling over the communications from jackson hole. what could derail this sigh of relief? david: i think most people are understanding that tapering will happen i guess in q1 of next year. but within that context, there is still questions over how much additional treasury supply is coming to the market. when we take different factors into consideration, our base case expectation is for only a very gradual path to a slightly higher 10 year yields end of this year. and when we think of risks to

the market place, it is difficult to think of any. we have seen incredibly robust inflation data that the federal reserve has said now constitutes substantial forward progress. we are not really sensing that they are panicking in any way. haidi: what are the strategies that are compelling right now. david: interesting that you ask that. when we look at equity markets, obviously, growth has moved, value has seen a significant move up at the beginning of this year, but when we look at names like consumer staples of developed markets, they are probably more compelling from a price standpoint.

and we understand why. people want to engage with the recovery. so given that it is not as sensitive to economic recovery, people have stayed away. but when we are looking at equity markets broadly, from a free cash flow yield perspective , and comparing the dividend yield as well as yields coming out of some of the more defensive parts of this market, it may actually be a place to position. the other issue we need to face up to in markets going in 2022 is how much stock do we place, quite literally, in the conviction we have in 2022, in terms of earnings delivery? so we very much recommend quality with some amount of defensiveness to

portfolios at this point in time. haidi: david wong, great to have you with us, alliancebernstein senior investment strategist. let's have a look at what we're watching in the sydney session. crown resorts reacting pretty negatively. down 0.5% not just on the full-year loss reported of $61.6 million, the net loss, but also the casino considering that it would expect significant civil penalties to be imposed, saying it is likely that the financial crimes regulators will begin proceedings against crown in melbourne. we are also watching fortescue metals, the world's number for iron ore exporter. seeing profits search to a record on the back of robust iron ore prices. we will be speaking to the ceo, elizabeth gains,

joining us to talk through the latest results. but he is her outlook when it comes to demand out of china as the government looks to r ein in steel production there. let's get to new york where vonnie quinn has our first word headlines. vonnie: hurricane ida barrel into the louisiana coast sunday, making landfall as a catastrophic category four hurricane. it's storm surge threatens to inundate new orleans with mass flooding, testing its levee systems. utility outage tracking site reported more than 50,000 is this -- businesses and homes without power in louisiana. it is hitting on the 60th anniversary of hurricane katrina. a u.s. drone blew up a vehicle carrying suicide bombers heading to kabul airport, according to u.s. central command.

the associated press reported on afghan official three children were killed in the flight. there is still serious danger in kabul. an attack last week killed 88 people, including u.s service members. the device head of china's national health commission has rejected u.s. reports blaming beijing for stonewalling an investigation into the origins of the coronavirus. in a statement on the agency's wechat account, he blames the u.s. for politicizing the matter. xinhua reports that the chinese foreign minister says the findings include no scientific basis. sydney booked a record number of covid-19 cases, accounting for the bulk of cases in a new south

wales. the state saw a high of more than 1200 infections on sunday despite a ramped up immunization drive under lockdown in sydney since the end of june. new south wales is about halfway to a vaccination rate of 70%, a threshold set for loosening restrictions. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. kathleen: thank you. still ahead, some insight on china's megabank earnings from the regional head of fintech research, leon qi. in the u.s. warns it still sees "serious danger" ahead in kabul. this ♪ is bloomberg. ♪

kathleen: the u.s. drone new upper vehicle headed to couples airport. they say it was carrying several suicide bombers. this comes after jake sullivan says there is, quote, "serious danger" in kabul. turning this is dan -- joining us is our guest, dan. the drone attack, critics say it you may have destroyed some suicide numbers, potentially with collateral damage around that, but importantly, it will not begin to stop the kinds of terrorist steps, attacks, plans that could be hatched at a time when you don't have troops on the ground that can do the nighttime raids and reconnaissance that needs to be done. is that resonating globally? dan: it is certainly a concern globally.

the concern that afghanistan does not turn into a place that exports terrorism not just to the united states, to russia and to china and around the region, india in particular. there is a universal recognition that something needs to be done. joe biden argues that this can be done without u.s. troops in the country, that they have an over the horizon capability to continue using drone strikes to target prices fighters. the strike that we saw overnight . so whether this over the long-hauler will be enough to stop that is the question. analysts say that you do need people in the ground giving intelligence. that would, in this case, require the u.s. to work with the taliban, given that our partners in the region are now effectively out of power. haidi: and we have seen that

sort of coordination in terms of evacuation efforts. are there expectations that could continue? dan: politically, it is not feasible. the taliban does not want to look like it is giving the americans coordinates of people to conduct drone strikes in afghanistan. this was a big issue in neighboring pakistan, where there were political protests, people very upset that the u.s. was going there. politically, it is very difficult for the taliban to tell its fighters, you have been fighting america for years and years and years, and now we are going to work with them to take out these fighters. so there is a common interest. both sides don't want isis-k in particular coming after them.

but politically, it is very difficult, both for the u.s. and for the taliban. haidi: bloomberg asia government managing editor, dan 10 kate. thank you. coming up, we are finally getting huarong's long-delayed earnings results, posting a $50.9 billion loss. there is a bright side, though. we will get that after the break. this is bloomberg. ♪

kathleen: china huarong asset management released its financial statement for the last year and the numbers are not printing. some of the latest in the reaction to all of this, we crossed to our chief north

asia correspondent, stephen engle in hong kong. what stood out to you in the report? steven: the numbers you mention standout. good news, the silver lining is that they did return to a first-half profit this year. it was last year, $16 billion loss as leverage. more than 1300 times. what sense the bond markets into a tizzy in the last five months was this long-delayed financial results for 2020. you remember in march, they did not report that. then questions were being raised about the probability of a bailout. we finally got the details of little more than a week ago. state-backed firms like citic will be building the company out. over 100,000,000, yuan in

abatements. slashing shareholder equity by nearly 85%. its capital adequacy ratio, sinking to 6.32% as of june 30. it was more than 13% a year prior. the regulator has a minimum capital adequacy ratio forbade that managers at 12.5%. -- forbade that managers -- minimum capital adequacy ratio for bad debt managers at 12.5%. its credit rating was cut. however, fitch was optimistic and revised its ratings to positive from negative, citing the extraordinary form of support from authorities. obviously, when you get $7.7 billion, basically a lifeline from state backed firms, that is

a good thing. but again, what a report. haidi: how many of its lives are left? [laughter] right? what is next? stephen: it will have to pay off some non-core subsidiaries. they did not have a lot of details of the rescue package or what it will look like going forward as the finance ministry essentially hands over control to the citic group. other than to say that when these assets which are coming in , as well as the bailout, once it is finalized and distributed, the company says it has capital as a going concern for the next 12 months. so at least it has a number for the next 12 months. we will have to see beyond that.

haidi: our chief north asia correspondent, stephen engle, in hong kong. china's crackdown on its tech companies is prompting global investors to look for new opportunities across asia, contributing to a record jumping ipos from india to south korea. for now, let's bring in our equities capital markets reporter. tech ipos outside of china are really benefiting from the fund flows. >> exactly. it is not to say that they would not have been successful even without the crackdown on china, but that has certainly changed the dynamics of investors who have been burned from investing in china tech. so it is quite fortuitous in a way that these large unicorns from these countries are mature enough to get ipos. damato in india, for example, pretty successful in operating. they were successful even without the crackdown, but investor interest was higher as a result of that, given that the china tech -- has slowed down to

a trickle now. there is a lot of regulatory uncertainty. kathleen: is it permanent? will the chinese government look at this in safe, maybe we don't want this to happen? what do you think is next? julia: it is hard to say if it is permanent. it is certainly permanent in the sense that these companies coming out the rest of the year, backers say are a sign of things to come, that they have finally matured. they work rigorously overworked and -- previously overlooked and will now get investor interest. that being said, china's sector is certainly not dead. people believe it to be dead completely. it certainly will find a way to come out of this, but we don't

know in what shape or form, and certainly, the regulatory uncertainty may be a much greater factor, which is weighing on their valuations. kathleen: so, what does this mean for investors? julia: investors basically have a much broader universe of tech companies to invest in now in asia, when it comes to asia. previously it used to be just north asia. south korea to an extent, but china, japan. but when it comes to ipos, it was certainly made chinese companies. whereas now, you are seeing many of the startups that have them growing in southeast asia or in india and even in south korea really come to the market. so it could be a rebalancing in terms of the weighting in regional benchmarks as well.

kathleen: equity markets capital reporter julia fioretti. now the first word headlines. this company returned to profit in the second half. net profit rose 6.2 billion dollars, reversing a $3 billion from last year. they boosted oil profits, citing rising oil prices. it plans to increase to more than $16 billion. this company posted a full-year loss, more than the $125 million in net costs, due to facilities being closed on government orders. it also says the financial crimes regulator is likely to start civil proceedings due to a potential breach of money laundering rules. and this company will acquire another for about $10 billion.

there was a 13% premium to the stock's closing price on friday. , we parse the singapore guidelines on labor

>> this is "daybreak asia", i am vonnie quinn with the first word headlines. anthony fauci says the door is open to administering booster shots sooner than the eight months, after a completed round of covid-19 vaccinations, the possibility president biden had raised. he says he is open to a variation on the timeline, based on data. the u.s. outlined a plan to start administering booster shots on september 20, as vaccine efficacy is shown to weaken over time.

the scottish prime minister is self-isolating after a contact of hertz tested positive for covid-19. that comes as a scotland reported a record number of new infections on saturday, days after she warned restrictions could be imposed. cases have soared since august 9. at the start of the month, new cases were averaging less than 1000 day. bolivia's oil minister tells bloomberg that the head of the country's national oil corporation has been suspended, pending an investigation into whether he violated policy. he was the chairman for seven years and was overseas on a business trip without getting the necessary approval, in violation of ministry policy. the noc. ed asner, the actor best

known for the 19 80's comedy "the mary tyler moore show" has tied. he was later playing the same character in another drama. he is the third mary tyler moore alum today in recent months. he was 91 years old. 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. haidi: singapore's prime minister is seeking to defuse concern about the workforce. he has pledged his government will further tighten labor criteria for expatriates, and holding companies to account when it comes to the hiring practices. >> we have to acknowledge the problem so that we can address singapore's legitimate concerns and diffuse resentments over

foreigners. only thus can singapore remain open and continue to grow and progress. haidi: joining us to discuss this is our asia economics reporter, michelle jamrisko. what was his residue it comes to -- what was his message when it comes to racial harmony? michelle: the cornerstone of his speech last night, the prime minister's message throughout the pandemic was around the shared sacrifice among all of the ethnic groups. last night it came to a fore again when talking about foreign workers. there is a strong million and indian presence here and a substantial segment of foreign workers. he talked into -- he got into recent charges on social media that there is chinese privilege. some local workers pushing back on government efforts to allow local workers to get more

employment during the troubling economic times. so he wanted to push back on these charges and talk about ways in which the government is looking at, sort of reading that effort, but also calling on all groups to come together again in this moment, to understand each other and move forward stronger together. kathleen: in terms of policy, what is the government looking at to try to resolve racial tensions in singapore? michelle: the government has tightened visa policies, to underscore that the foreign talent needs to be higher skilled. he also noted that companies employing foreigners will have to pay their local staff a qualifying salary of at least 1400 singapore dollars, a little

more over 1000 u.s. dollars a month. he also said that they are studying the plight of low income delivery workers who have no employment contracts and benefits, and have been especially overworked, delivering food during the pandemic. he also underscored that this is an open city state and is competitive because of its openness and welcoming of foreign staff, really trying to push back, warning again that removing that label would be detrimental to the local population. haidi: singapore rates 80% full vaccination over the weekend. why is that a significant milestone? michelle: healthwise, this is a significant milestone, not quite herd immunity, but a very high rate. really ensuring that the population can treat covid as

endemic and learn to live with the virus, these are the messages that the government has been preaching the past several months. the prime minister pointed out that this is a tentative greenlight to move forward to easing things domestically, and for the borders, to crack open a little bit more and establish more travel. in less than two weeks, we will see the two way travel lines between germany and other countries open up. kathleen: senior asia economics reporter, michelle jamrisko, thank you for joining us. now to the fed. dallas reserve fed president robert kaplan said he thinks the fed will start slowing fed asset purchases as soon as possible. he also said labor imbalances will be a feature of the u.s. for a long time. he spoke before the start of the fed's and will jackson hole policy forum. >> these labor supply demand

imbalances will be with us for an extended period. do i worry about it? i think it will be part of our economy, a feature of our economy. i think that, as a result of that, our year-end pce at the dallas fed, inflation forecast is 3.9%. i could see it up to 4% by the end of the year. we think the extreme moves will moderate, like used-car prices, some of the extreme notes from the reopening will be moderate. but we think price pressures will broaden because of some of these persistent imbalances, particularly on labor. we are we think we are right now is in the range of 2.5%. i could cs revising that up versus down in the next few months -- i could see us revising that up versus down in

the next few months. we are willing to run moderately above that. we have a commitment to anchor it. low and moderate income communities are seeing a greater share of their wallet going to gasoline, food, rent, autos. they are feeling those effects. >> your 2022 guide for raising interest rates, and you also want to get the taper over with, is it possible that we see fred have to move up the date of lift-off -- that we see the fed move up the date of lift-off the fed funds rate? >> i have been careful. decisions on asset purchases should be separated from decisions on the fed fund rate. we have a number of months to the next year to assess how the economy unfolds. we will make that judgment next year. i do believe we should start the

asset purchases adjustment process soon, literally as soon as possible. i would like to see us do that process gradually over, say, eight months. and i think we have to get started on that. to the extent we get moving on that, it may give us more flexibility down the road on our decisions on the fed fund rate. kathleen: that was robert kaplan, dallas fed president, making the case for more aggressive movement from the fed, speaking on bloomberg television earlier. i want to look at a story from our bloomberg equals team, looking at high-frequency charts -- we were talking about this last friday -- showing the economy tightening, because of delta. let's start with you. on the sidewalk in new york city, they have built the structures. everybody still sitting upside.

however, in the broader u.s., they are 10% to 11% below 2019 levels. that gap following 6%. opentable saying it is because of rising covid cases possibly. last tuesday, one point 5 million people got on planes, the fewest in three months. seven day average declining to 1.7 5 million passengers in august from over 2 million passengers earlier. people blaming the delta variant. we certainly have not asked people why they are doing it. the numbers are not adjusted, so we don't know what we are comparing these numbers, on a statistical basis? everyone is watching these numbers closely. haidi: yes, they are talking about, we don't know what the deeper longer term implications are of this pandemic. and the other thing we are watching for is indicators when it comes to the return to

office. this time last year, we were expecting companies, wall street or silicon valley, to start coming back after labor day. that has seen a wrench being thrown into it. so many of these businesses pushing back their return to office, changing it to more of a hybrid strategy, and on top of that, vaccine mandates and mask mandates on top of it. jp morgan saying the return to normal offices has returned as a return -- has slowed down as a return to delta. if you look at the data, 10 out of the largest business districts in the u.s. have fallen to about 30% of pre-covid 19 levels as of august. so it is still a long way to go. it could be a completely different new normal. [laughter] coming up next, china's megabanks are in focus. they have recovered from their worst slump in a decade. leon qi will be joining us to break down those results.

this is bloomberg. ♪

kathleen: first day of the trading week in asia, after a record close in u.s. stocks on friday. sophie kamaruddin standing by in hong kong to give us the latest. stte sophie: we are seeing stocks higher in asia, nikkei

225 up 0.1%. the aussie share market seeing some weakness as we get some results on the market. we are keeping a close eye on commodities this morning given the disruption caused in the southeastern part of the u.s. from a hurricane. . we are seeing u.s. gas futures rally, brent prices up. 20% of the u.s. oil refining capacity is off-line, so we have asia refiners rallying this morning. switching the board to look at currencies. the dollar maintaining some of that weakness following the drag from the commentary from powell on friday. the kiwi dollar holding gains at 70. the ringgit is extending its advance for six straight sessions. korean won on the front foot. more strength further won on that hawkish be ok on economic -- on the hawkish bank of korea

on resilience. we may see some downside pressure for the aussie dollar due to slowing chinese growth, falling commodity prices, as well as the possibility we may get in negative print for second-quarter gdp. on the terminal, we have the likes of citi warning of the possibility of a technical recession in the australian economy, given the drop in exports. that may mean positive upside for domestic growth drivers. haidi: china's banks extending that recovery after suffering through their worst decline in a decade. that is after seeing credit demand and improving asset quality after china's economy really emerged from the pandemic. we are expecting results from the banks today. our next guest has his own top list. leon qi. the first slot is in. we are getting others,

including boc, which is one of your top picks today. leon: yes. good morning. we are seeing good results from chinese banks, especially in the second quarter. we are seeing earnings growth accelerating. as you just mentioned, boc is one of our top six. it has a sizable presence in hong kong. given the likelihood of the fed tapering, the hong kong business will likely see better names, which will push it back -- which will be a positive impact for the boc. we are seeing the stabilization. credit growth accelerating. remarkable income growth. driven by them being able to demonstrate operational

technology and technology adoption. overall, we are in the middle of probably the best set of results for the second quarter over the past decade. haidi: what are you expecting as the impact of the regulatory drive strikes? we are getting news of further mortgage restrictions, for example? leon: mortgage restrictions and lending restrictions have been there for a number of years already. we are expecting most of the banks actively trying to improve their lending mix. on the one hand you have that property related lending being capp by regulations, and on the other hand, you have sme lending improving. initiatives to improve the infrastructure of these sme

lending, and rising demand. overall, when you look at credit growth, it has not really been dampened by either the property sector lending restrictions, or the relatively weak consumption sentiment. it is driven by sme lending. kathleen: leon, i am interested in set of the macro view. we are waiting for china's pmi numbers. we know there has been a lagging on the consumer side. you said in some cases, sme lending is becoming more and more uber driver. what do you expect over the rest of the year? is china's recovery going to be strong enough to keep the banks going? how does the international investors side of this, how is it working for them as well? leon: for the macro side if you

look at the first half the infrastructure demand has relatively been week -- relatively been weak. bond issuance this year is likely to be better in the third quarter. infrastructure aside, we are expecting a pickup, a sequential pickup in the third quarter as well, which will help drive credit demand. internationally, china has been talking about its dual side goals. for the time being, exports have been resilient. but in case there are any pressures on the export side, given the rmb, there is still some flexibly to in the renminbi exchange rate, with china being able to moderate that through foreign-exchange policy.

kathleen: we talk about how advanced technologically in the banking and financial aspects china is, payments, etcetera. what about fintech? regulation, the banks' adoption of it? leon: we are actually seeing more pronounced fintech adoption for chinese banks. these banks are gradually raising their financial results. on the one hand, we are seeing the adoption of the latest technologies in customer engagement, it has been able to set banks apart on the wealth management side, banks like china's merchant bank. on the other side, the adoption of technology has been able to increase and improve operating efficiency. it has enabled banks to upgrade their infrastructure to cater to

their customer demand. we are seeing the cost-income ratio coming down. i would say wealth management and operating efficiency, these two factors have set apart the banks' earnings. kathleen: thank you so very much. seems like fintech is not a wave of the future, it is here, better get on board. plenty more to come on "daybreak: asia." this is bloomberg. ♪

kathleen: south korea may be becoming the first country to pass a law ending apple's domination of payments on their platform. our reporter is in seoul. tell us about the deal. this could reverberate around the world. >> south korea is expected to become the first nation to pass the law that would ban google and apple from forcing developers to use their online payment systems. the act was submitted last year after google said it would adopt a new policy to hike the commission on in-up purchases 30%. and the latest version of the law, companies must allow their users to pay through a variety of payment options. the new bill is highly likely to pass through committee action.

even the ruling party and super majority -- after the elections would give the ruling party a super majority. apple has been adopting the policy -- fighting the policy globally. arguing that this text the user from fraud. there will be heated controversy. there have been global efforts to curb these two tech giants' monopoly. they are also facing legislative measures in the u.s., which aimed to curb their dominant power on ad marketplaces. haidi: our asia tech reporter in seoul. mate one results were out. -- meituan, investors will

be watching whether the government crackdown has played out. our senior analyst joins us for a preview. what is key for you in this set of earnings release? reporter: it is about how the company plans for changes in its business so it can comply with the new regulatory environment. the highlight will be in terms of changes to the benefits the company will be making to its core food-delivery business and the riders in that part of the sector. kathleen: what do you expect to happen next? how will this play out? >> if the company is able to help investors form a clearer picture of the company's outlook, it will ultimately be a benefit for them because they are ultimately the leading player in food-delivery

business, and the resilience of their business in a new regulatory environment can help them become stronger in the next couple of years. kathleen: catherine lim, thank you so much. coming up, more insight on jay powell's jackson hole comments with danielle dimartino booth. haidi: and don't miss our interview with elizabeth gaines in sydney. that is it for "daybreak: asia." we will look ahead to the start of trading in hong kong, shanghai, and xinjiang. stay with us, "bloomberg markets: the china open" is next. this is bloomberg. ♪

♪ >> 9:00 a.m. in beijing and shanghai. welcome to "bloomberg markets: china open" i am yvonne man. jay powell liens darvish, signaling a gradual withdrawal of policy support. >> it will not be intended to carry a signal regarding the timing of interest rate