♪ haidi: hello and welcome to daybreak asia. sophie: we are counting down. shery: our top stories this hour. asian traders mold the grout -- growth outlook and the jump in energy prices after the s&p 500 posted's biggest game -- gain this month.

australia, the u.s., and the u.k. form a new security pack. washington insists it's not targeting china. the ecb president tells us europe's next big economic test is following through unchanged. -- on change. >> live from the kennedy space center in fort a. spacex is set to offend -- spend the first all civilian crew into orbit for the first time. this marks a new era for space travel. haidi: we will back with him through the next couple of hours as we count down to the flight. you mentioned this new indo pacific security pact between the u.s., the u.k., and australia. australia will be able to acquire a nuclear powered submarine, putting an end to the deal with france. huge implications for the landscape of national security. china didn't actually get

mentioned by name in this announcement. it was very diplomatically choreographed. the rising aggression and confidence of beijing is what this alliance is intended to address here. shery: we have seen this alliance and that relationship between the u.s. and australia strengthen more during the coronavirus pandemic, especially as australia was trying to find the origin and source of the virus. we continue to see more news on those booster shots coming from the likes of pfizer and moderna which want those booster shots because it does restore the waning immunity from their vaccines. we are expecting a panel of experts to talk to the fda on friday and come up with a recommendation to vaccinate americans with that booster. haidi: here in australia, the vaccine data is getting better in terms of hitting that 80% target that was announced for the state of new south wales.

a long way to go when it comes to the double vaccine target. the damage when it comes to the august jobs report is likely to be pretty evident. unemployment will rise to 5%. the disruptions from the delta variant, the lockdowns that we've seen amongst half of the national population is likely to result in pretty to big declines in jobs and hours worked. shery: another day, another headline regarding evergreen. beijing telling banks that ever grant will not be making payments of interest next week. we continue to see those trickling headlines. we continue to cover because of how big this company is. $300 billion in liabilities. what is systemic risk it could posted china but to the global economy. the s&p rating agency downgrading their credit rating. we have seen regulatory risks and slowing growth, weighing on chinese markets.

let's turn to sophie. the yuan has stayed resilient. sophie: that's right. the remember he has defied bears. 2016 high. trade and capital inflows have stayed positive, limiting the downside pressure on the currency. the u.s. is a part of that equation. goldman sachs, recently good prospects for shipping to improve later this year or early next year. covid restrictions are seen to be easing. for now, supply chain snarls are weighing on the global economy. tina oliver saying -- elevated commodity prices. we have seen gas searching as well as oil which has climbed to

a six-week high. brent above 75. more gains may be seen as we may not be passed the peak demand for oil, according to opec. haidi: australia joining this new indo pacific security partnership with the u.s. and u.k., it could pave the way for nuclear powered summaries. this comes as china expands its military presence in the region. >> the future of each of our nations and the world depends on a free and open indo pacific flourishing in the decades ahead. this is about investing in our greatest source of strength, our alliances, and updating them to better meet the threats of today and tomorrow. haidi: let's get over to our

government reporter emily wilkins. president biden was very diplomatic. our guests said this was a very carefully orchestrated announcement that was very careful not to mention beijing by name. clearly that's the intended target of this new alliance. emily: yes. absolutely. as far as strengthening the u.s. defenses as well as some other items in the indo pacific region , that seems to be what the u.s. is doing here. the biden administration, when it comes to foreign policy, their focus is on china and beijing. at least worth pointing out that the white house claims that this had nothing to do with beijing, that this was about keeping a relationship with both the u.k. and australia. the white house says that it is meant to be a relationship between these three countries and they expected to be sustained for a number of years. in addition to security and

nuclear power some marines, they expect the relationship to also include aspects of cybersecurity and artificial intelligence as well as the defense posture. haidi: really hard to imagine that this doesn't have anything to do with china given that it also comes after the phone call but pain -- between president xi and president trying -- biden that did not seem to go well. emily: there's a lot of tension right now between washington and beijing. that has in east at all during biden's presidency. you've seen a number of content meetings between washington and beijing officials. you had that phone call where biden asked for the meeting in person with president xi. at this point, it's not going to be going through. a huge question whether the leaders will meet at the end of october during a summit. there's a lot of questions around the u.s. china relationship. one thing that is very clear in

d.c. is that there is really bipartisan support for an aggressive stance with china. this is something that both democratic and republican parties have agreed on. certainly doesn't speak to the tensions between the two countries warming up anytime soon. shery: emanate -- emily wilkins there in washington. we are coming down to a landmark space launch set to happen in about an hour. spacex will be carrying its first all civilian crew into orbit. the high-stakes mission represents the biggest potential step forward for commercial space travel. ed ludlow is at the launch site in cape canaveral. we know that spacex has ferried astronauts to and from the international space station. this is all civilians, everyday people. how significant is this?

ed: being an astronaut is not their day job. what an office. you can see falcon nine with the dragon capsule on top of it. they've had five months of intense training, largely at the spacex facility in california. it's things you would expect. jeric isaac men, the commander of this mission, the ceo who is funding it, is an experienced and capable pilot in his spare time. he flew a number of the crewmembers and fighter jets to get them experienced with the geforce. they do virtual reality training about what it will be like in certain scenarios inside the capsule. dragon is designed to be fully at thomas. not just the launch process. in the event of an emergency, it will come to the mission commander to act. i'm assured by spacex and other personnel here that they are

ready to do that. haidi: what are the risk that we are talking about here? these are not professional astronauts that are involved. ed: it's the distance from earth. they are going to orbit earth at an apogee of 360 miles. jeff bezos went to 65 miles above the earth for just a few minutes. on any measure, this is a magnitude greater. everyone i've spoken to has said that this is a much more substantial and big step for the civilian audit -- space industry. because of that additional distance, it is higher risk. that's further than the international space station. that's further than the hubble telescope. these are civilians who are not trained professional astronauts. the risk is heightened. there is risk in any flight. spacex is confident in their technology and the -- preparations for this mission. haidi: we will get more as we

cut debt -- count down to that launch. data from pfizer and return to suggest that the efficacy of their covid-19 vaccines wane over time. they say that a booster shot is effective at warding off the virus. let's get more from our san francisco bureau chief carol whitesell. what does the data tell us about the need and efficacy for booster shots now? carol: the pfizer data came out today, part of a real-world study in the u.s. and israel, showing that the vaccine efficacy wanes over time. the booster shots have been proven to be effective in helping that. the data indicated that they think that the efficacy is more tied to the length of time as opposed to the delta variant. in israel, the study showed that the boosters supported the notion that they help. people got the booster shots and

they confirmed infection rates that were 11 times lower than people who had gotten the two doses. the fda will be reviewing it. they have a meeting on friday to decide whether or not they want to recommend people should be getting boosters. haidi: will this affect global vaccine manufacturing when the rest of the world the still and vaccinated -- unvaccinated? carol: there was a study saying that they were unsure, saying that vaccines may be better served in trying to get vaccines to unvaccinated people around the world where there hasn't been as much production. biden has put a lot of effort and money into vaccine production to ensure that we will get vaccines to the rest of the world. we aren't sure that this is the best production but we are so producing the vaccines here.

booster shots or not, we will still try to get them out there. shery: carol wetzel. let's now get to vonnie quinn with the first word headlines. vonnie: thank you. chinese authorities have told nato lenders not to expect interest payments due next week on bank loans. a government ministry warns that ever grand will not be able to pay its debt obligations due on september 20. the company is still discussing loan extensions. they are sitting on more than 300 billion dollars worth of liabilities. north korea fired two ballistic missiles wednesday in its second major test in less than a week. the launch came on the south they that the south korean president observed his own military test of a submarine launch, becoming one of only a few countries to acquire the technology. south korea's next president said the u.s. is being reckless in its diplomacy with north

korea. >> americans view things with such a naive way. they thought up -- that north korea is like europe. they are like a monarchy from the feudal era. vonnie: the u.k. prime minister has overhauled his cabinet, promoting a woman as the vice conservative female foreign secretary. the country's top diplomat ran point on trade. hi covid-19 case numbers with the country recovering from the worst recession in three centuries. global news 24 hours a day on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. this is bloomberg. haidi: still ahead, north and south korea's latest missile tests and other regional security issues. shery: jeffrey halley joins us

with his market outlook. this is bloomberg. ♪

♪ shery: we are counting down the start of trade in tokyo and seoul. japan's trade balance for august is due later this hour as well as a number -- the numbers on the flow of bond and stock purchases by domestic and foreign funds. softbank made its first investment in a saudi arabia based company, leading a 125 million dollar financing for customer communication platform. we will be watching the stock at the start of the open. sk innovation holds a shareholders meeting to get approval for its plan to spin off its battery business. we are watching lg chem which supplies to chevrolet bold.

there's risk of a spontaneous fire to spread. jam has recalled all of them sold since 2016 because the battery can catch on fire. a win for samsung engineering which has scored a $145 million plan to construct orders in europe. haidi: yes. asian stocks looking pretty steady going into the start of trading on thursday. easing concerns about the economic outlook. let's bring in jeff halley. it feels like we are seeing a slowdown. what is the next catalyst here? jeffrey: look, i think we are going -- the next big issue confronting markets could well be energy prices. look at the price of natural gas at the moment. look at the amount of storage in

europe for example which is well below seasonal levels. i'm getting quite concerned as we head into winter that nobody has hedged against this move. we could see a very sharp spike in energy prices into the last quarter. that may feedthrough to evermore inflation again, making that transitory, looking more like temporary, looking more like permanent inflation. shery: right. even if they are not permanently structural issues there, you tend to get strikes. does that potentially change the metric in terms of how you are looking at what the fed does and what other central banks to? jeffrey: definitely. it depends on what your definition of transitory and temporary inflation are. some of the greatest minds in economics are on both sides of the fence. there's no clear answer there. i do believe that we have a

potential for a big taper tantrum at the end of the year. central banks around the world quantitatively easing so aggressively. pumping out asset markets to ridiculous levels. putting that genie back in the bottle becomes harder and harder the longer that this sort of process goes on. i'm struggling to see that we won't have another taper tantrum at the years and, as things start settling. haidi: what does that do to the price of gold, which has been underwhelming and lacking keep -- clear direction? jeffrey: these days, it seems that gold is a hedge for very high inflation. it's a very poor hedge for slightly higher inflation, so we say. i don't think we will see any good news out of gold. when the fed does start tapering, we will see another

bout of u.s. dollar strength as the market starts pricing in rate increases sometimes in 2022. that will be good for gold. gold is very unspectacular, uninspiring. i think the balance of risk is to the downside for gold right now. shery: going back to oil prices spiking, that seems inspired. will it inspire oil related stocks? the gdp chart shows it has really lagged. jeffrey: that one is a little harder. i'm not sure if the follow-through is going to be necessarily the producers of oil themselves. at the end of the day, the world has plenty of oil. opec can probably lift production into any price spikes. i most concerned about natural gas prices, especially with the northern hemisphere winter upon

us. look at european, asian prices for natural gas at the moment. i'm quite concerned. by default, they should drag crude oil higher. shery: jeffrey halley there. coming up, we have the first private all civilian crew to orbit the earth. the launch window opens for the inspiration for mission at the top of the hour. stay tuned for special coverage. plenty more ahead. this is bloomberg. ♪

♪ haidi: here's a quick check of the latest business flash headlines. s&p has downgraded ever grants rating to double see, the probability of debt restructuring. ever grand has more than $300 billion in liabilities. they may not be able to service

its debt in time. s&p says financial institutions are likely to be unwilling to rollover maturity or grant new loans to the property developer. spicejet have submitted competing bids for air india. the bids came after the government sweeten the deal by allowing scooters to decide how much of the carriers $3.3 billion debt they want to take on. proceeds from their india sale will be a critical source of revenue. india is seeking evaluation for its state backed life insurance operation of between 109 and $136 billion. that would be the country's biggest ever ipo. the valuation is much lower than jeffrey's estimate of $258 billion. in line with others. sources say india will sell 5-10% of lic.

frenetic says its listing on the nasdaq via a spac deal. the merger with artisan acquisition gives them an enterprise value of 1.25 billion dollars. the deal includes the fourth purchase agreement from aspect, pag, zen capital and others. the deal is expected to close by the first quarter next year. haidi: casino operators with exposure to macau humbled wednesday after officials in the gaming hub said they are tightening restrictions. the u.s. listed stocks expanded their slump from the previous section. macau plans to introduce new regulations including appointing government representatives to supervise casinos. haidi: let's take a look at the outlook when it comes to currencies.

the yuan has maintained a little bit of strength and holding pretty steady despite disappointment in the weaker retail and industrial output data. despite the ongoing systemic concerns over ever grand. the onshore yuan strengthening to the highest in almost two weeks in wednesday's session. we will continue to watch that. watching the yen also holding steady under that one-time handle. a bearish five when it comes to euro-yen. also watching to see if there's a reaction when it comes to the latest out of north korea. that missile toast from south korea as well. the aussie dollar holding at 73.40. take a look at this. we should be looking more at the dollar kiwi which analysts look to see maintaining its course towards parity after that blowout gdp report from new zealand. we are feeling -- really feeling that rate heart from the rbnz. the first private crew to orbit the earth.

the mission is scheduled to launch in the next hour. lots more ahead. this is bloomberg. ♪ and there you have it— -woah. wireless on the most reliable network nationwide. wow! -big deal! ...we get unlimited for just $30 bucks. sweet, but mine has 5g included. relax people, my wireless is crushing it. that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one upping itself. switch to xfinity mobile and save hundreds on your wireless bill. plus, save up to $400 when you purchase a new samsung phone or upgrade your existing phone. learn more at your local xfinity store today. introducing xfinity rewards. our very own way of thanking you just for being with us. enjoy rewards like movie night specials. xfinity mobile benefits. ...and exclusive experiences, like the chance to win tickets to see watch what happens live.

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>> australia is joining the new indo pacific security partnership that could pave the way to acquire nuclear powered submarines. leaders announced the partnership than a virtual meeting. the deal would increase cooperation on cybersecurity and delta react. u.s. officials say it does not target china or any other country. pfizer says data from the u.s. and israel suggest the efficacy of its covid vaccine wanes over

time, but says a booster shot is safe and effective at warding off the virus and new variants. the company detailed the presentation it will deliver on friday. the panel is expected to make recommendations on whether americans should receive booster shots. a fire at a key electricity station at the u.k. has shut down a major cable that brings power. the u.k.'s grid manager says it will last until of these october 13. how classes are already at record highs. burton is an importer of power and france is the biggest supplier. spacex is preparing to launch. it is the first chartered passenger flight for elon musk's company. a pennsylvania entrepreneur will not say how much he paid.

they will spend three days orbiting earth at an altitude of 575 kilometers. we will bring the launch when it happens. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: we are waiting and our attention turns to a new space race among many nations reaching for the stars, most noticeably china. for more let's bring in stephen engle and hong kong. how far has china's station ambitions gone? reporter: they have gone a long way, quietly they are building this new space station. the modules have been connected together, they sent out three astronauts to the space station. right now, on one of the main large beds, another rocket is

getting ready to possibly launch as early as monday of next week, a cargo mission to sense of laws to the space station. the astronauts will return to earth in the return capsule, then another rocket will likely go up in october for three more astronauts before the space station is operational. by sometime next year. it is not as large as the iss, but a key component of china's space ambitions with have gone on hyperspeed. earlier this year, they successfully sent a rocket and rover down to the surface of mars. they have big ambitions for future deep space missions, possibly to jupiter. uranus.

they have big ambitions to go to the moon, put out a man station on the moon. they have already sent they retrieve and return mission. other nations have big ambitions, but china leading the way by far. we have a chart where you can see that china is spending much more than others. they have a model, they can do that. haidi there also seeing private-sector money, is this about sending billionaires to space? stephen: not yet. it will be foolhardy for jack ma or under billionaires to go in space. they are keeping much closer to earth and keeping their heads down below. there are private space companies, mostly satellite companies.

one billionaire is a backer behind galaxy space, which launches first satellite in 2020. there is also i space backed by sequoia capital china, the kingpin is -- they sent three satellites to sub orbit. that was the first private-sector satellite launch in china. while we are talking about asia, keep in mind there will be a private citizen going up on spacex's next generation of rocketship,. the starship. slated for 2023 or 2024. the billionaire has paid a hefty sum to go around the moon on spacex, there is a growing appetite. it's not like blue origin or virgin galactic sending richard branson or jeff bezos to space, but you are seeing some trickle

of interest in asia. haidi: stephen engle with the latest on china's space ambitions. stay with us, our special coverage continues as we count down to the launch window opening for the inspiration 4 mission in a half-hour's time. let's take a look at the third day session for asia. sophie: nikkei futures are edging lower, but the world's best-performing market still looks appealing for evaluations. in wellington, kiwi stocks gain a little bit of ground and the aussie kiwi edging towards parity as we digest a solid gdp report from new zealand. the pboc is easing policy to push and china's slowing economy, slowdown has not weighed on the greenback as capital flows have stay positive

along with trade to impart to what we are seeing with expert demand and higher shipping costs. flipping the board, supply chain issues are dipping into u.s. growth outlook along with the delta spread which puts limits on consumer spending growth. jp morgan lowering its forecast to 5% from 7%, but it did raise its other forecast to .5%. shery: coming up, a leading presidential candidate from south korea's main opposition party questions if the u.s. can offer real protection. he says bidens approach to rough korea is naive. -- two north korea is 90. that exclusive conversation ahead. this is bloomberg. ♪

haidi: let's get you a quick check of the business flash headlines. india it will allow telecom companies to be fully foreign-owned, we'll get more time to pay government dues. the rescue plan is seen as crucial. the industry has been grappling with mounting debt and a price war that has produced cheap voice and data charger. one company has agreed to buy sky for $4.2 billion.

they went public in 2018 at $23 a share, it's being purchased at half the price. the deal -- one of australia's largest pension funds [indiscernible] will invest $732 million in bonds. the fund is trying to harbor missions linked to its investment by the end of the decade. it plans to eventually decarbonizing its all fixed income portfolio. shery: north korea fired two ballistic missiles on monday and a second major weapons test in less than a week. that came as south korea tested its own submarine launched missile and china's foreign minister visiting. meanwhile, a leading south korean presidential candidate told us washington's just frenetic approach -- diplomatic approach is naive. he spoke exclusively with us.

>> wednesdays missile launches nothing new at all. let's important to me is not the launch itself but the fact that north korea has reached a completion stage of its submarine launched missile development program. this means the collapse of the u.s. nuclear defense network. the u.s. is prepared to defend against intercontinental missiles, but with the summary making an appearance, that will be neutralized. say they launch from the pacific ocean. how can the u.s. defend us? that is how far it comes. but americans still want to use diplomacy. i find that approach so hard to understand. we have to come up with a better way to understand -- handle this. >> how do you plan to facilitate this? >> americans are approaching north korea in a naive way.

the pharmacy is nothing but a reckless approach. it has no foundation. same with negotiations. they will never back down, they pretend to back down. if you look at the way the u.s. approaches north korea, they have become dragged into their ways. it by big, north korea has crossed the red line. that proves the strategies wrong. americans view things in such a naive way. they thought north korea was like europe. they are not rational. they are like a monarchy from a feudal era. shery: the people's power party speaking exclusively with bloomberg. let's get some analysis with the director of center for conflict management at ey university. it is great to have you with us. the north korea missiles are confirmed to have fallen within japanese waters at a time we know the u.s. envoy is there. is this anything more than

another cry for attention while we have these high-profile officials in the region touring and talking? >> it's a big picture strategy the provocation. the u.s. wants patients, china wants the same thing. north korea does not have many resources so it provokes at the right time to garner a global audience. it's timing is always impeccable in terms of maximizing bargaining chips for a negotiation, which is what this is about, the multidimensional chessboard. to maximize what he can get. that is not just economic, it is military and diplomatic and the international community. sophie: shery: shery:shery: whose move is next? where are we in the dynamic? guest: with north and south korea, in terms of history and culture, they view itself as a

shrink between two wealth. that is where it is. things have ramped up, but i think the parties want the same thing. they want peace and security. that is the end goal, the strategic playbook differs. that is where i think there will be miscalculation. north korea is the leader on this chessboard. it's preemptive, provocative. everyone else's reactionary. you don't want to play defense the whole game because you will not win the game. it becomes an issue of what north korea is going to do next. i think north korea is laying it strategically, and it knows the south korean president, the window of opportunity is closing quickly because his presidency will end next year. haidi: when it comes to the

biden administration's approach to the korea's, is it unhelpful that we don't seem to have a coherent or outwardly presented strategy? guest: this is another playbook within north korea's most -- negotiation strategy. any incoming u.s. president will have a lot of stuff to deal with. usually when it comes to issues in terms of history, north korea is dealt with on the backend, not the front end. it's usually done in the last 10 minutes of the fourth quarter in terms of securing some type of legacy for a u.s. president. as it applies to biden, he is just going into the presidency and has his hands full with afghanistan and everything else. transportation, etc.. north korea knows this, he knows how to write international players, my new show of u.s. domestic politics to maximize,

it is playing a game of prisoners dilemma were multiple parties are trying to understand strategically whether they should cooperate or betray one another. north korea is a master at prisoners dilemma game theory. haidi: australia has entered into an alliance with the u.k. and u.s. which would allow it to procure nuclear powered submarines. what do you say that south korea get on the offense and be given access to technology? guest: it's constraining south korea in terms of securing nuclear weapons. that is what it is ramping up submarine capability. the asymmetry of unequal balance in terms of military capability.

especially when you are bordering one another and one country is saying this rhetoric in doing these exercises, you don't want to be a symmetric situation on the downside. that's not good and rattles financial markets. everyone presumes north korea is saber rattling. that could be miscalculated. one country's redline, if we look at history, world war i, a very small event can lead to a domino effect. not just north korea, but argued we all players. war is not irrational game. haidi: deeply uncomfortable and risky for beijing. what are you expecting from president xi, he had such a full domestic agenda. guest: that's right.

the prime minister is extremely sophisticated, so that person is a great representative. sending them over and over to south korea is a very strategic move. what does china want? they want strategic patients. once you have three party parts -- it wants to have three party talks. south korea probably wants to talk directly with north korea. that has been delayed throughout his presidency. i think the p.r.c. has to get involved. the united nations probably wants to party talks. the six party talks doesn't make much progress, but at the same time it basically slows things

down so things don't spiral out of control. the process of trying to get into north korea's head becomes less opaque and more transparent, not to say it is transparent, but relatively from the baseline becomes more transparent. haidi: that's an interesting way of framing the management of expectations. always great to have you with us, the university director for the center of conflict management. getting back to the special event we are watching. coverage of the first private also billion -- all civilian launch is scheduled for a few minutes time. we have lots more ahead. this is bloomberg. ♪

shery: we have breaking news out of japan, getting the latest trade numbers, missing expectations with exports rising only 26.2% year on year. it's a big number but it's a year on year basis coming from the pandemic, the estimate was for a gain of more than 30%. this has led to a trade deficit. the expectation was for a slight surplus, the adjusted number is a deficit of ¥271.8 billion.

the unadjusted number is much larger than i -- expected when it comes to deficit, contraction territory at ¥635 billion. imports gaining more than affected which has helped with the deficit, 44.7% rise year on year, but again, it's weaker than expected export numbers that are surprising right now. gain of 26.2% year on year, six consecutive month of double digit gains, but much lower than expected. we want to welcome our quick takes viewers joining across all of our streaming platforms who counting down to the launch of the first also lien spaceflight. no professional astronaut is on

board. inspiration 4 is a first all civilian mission. a very significant step when we are headed towards the space tourism race. let's bring in our correspondent ed ludlow who was on the ground at the kennedy space center. as i was saying, it's a pretty meaningful day. ed: this mission makes it the biggest step forward for not just civilian spaceflight but commercial spaceflight. going to 360 miles above the earth. jeff bezos went 65 miles above the earth. you all remember the fanfare that came with that. you will remember me in the texas desert. everyone i have spoken to says this is more.

for the very reason, that its 360 miles beyond iss, beyond the hubble telescope. it comes with more inherent risk because of what spacex is trying to put off -- pull off with nonprofessional astronauts. these are civilians. haidi: how does this compare with the space ambitions in asia? i spoke with south korea's first female astronaut. china is very much making its own efforts, right? ed: absolutely. china is building a massive space program. it was launched during the mao zedong days in the 1960's, did not get off the ground, excuse the pun, it really accelerated with the first astronaut in space. in the early 2000's. since then, they are putting together the modules for a space

station, a heavenly palace, they have three astronauts in one of the main portions of the space station, putting it together. there is another rocket that is about to launch on monday scheduled to go up and bring them back to earth. in october, another three astronauts will be cents to the space station and they will get the operation by 2023. next year. they have bigger ambitions, they want to go to deep space. they sent the rover to mars, they have gone to the moon and back. china has big ambitions. japan, south korea, they have space programs. japan has a satellite launching program since the 1950's, and

they have done asteroid exploration. india has a space program. united arab emirates has a space program. haidi: a new space race. we are team minus seven minutes out. i'm getting excited and nervous. what are we expecting? ed: i am nervous. the crew is relaxed. when spacex carried professional astronauts to the iss, they were running through the comms checks, they sat in the dragon capsule calm, giving thumbs up. when they did the comms check, they were clapping and smiling and high-fiving and laughing. i do know that's an indication of how calm they are or not. it's astonishing is they start with egress around three hours before launch. picture that, being a civilian astronaut and then waiting to blast up into space at a top speed of 17,500 miles an hour,

it's astonishing. they have given this error confidence. remember, the risk is not just these are civilian astronauts, it is slightly different to the missions. they are not going to the international space station, they are going beyond it. shery: there's a reason civilian trips were halted. we have the tragedy in 1986 with the challenger explosion. tell us about some of the risks these people conveys, they are, and why are they going up there? ed: let's do the risks first. kerosene, oxygen, you are sitting on a controlled bomb. in the history of human spaceflight, largely driven by nasa, there have been tragedies. remember, this is also a fully autonomous process. they will launch and the maneuvers are highly calculated.

spacex has done this time and time again. with talk about the crew. the commander is a ceo of a fintech company. he is paying for this mission, he some under $200 million. he wanted to pick roommates that reflected him -- things on earth. the big criticism of branson was why should we care about billionaires? we have problems on earth. they have addressed this head on. this mission aims to raise money for st. jude's cancer research. the other crewmember was suffering from cancer as a child at age 10, she overcame it and went on to be a physician's assistant at saint you. she was selected for that reason. another doctor almost became an astronaut in 2009, she got through to the final round but ultimately was not selected. her father worked on a control

station on guam. finally, the mission specialist. his friend won the seat in a lottery, passed up the opportunity, and gave it to him. can you picture that? if this is successful, saying how did you get into the spacecraft? my buddy wanted in a lottery. here i am. haidi: just one part of the astonishing story. we already minus four minutes. what are you looking out for in the next few seconds? ed: i have covered launches on bloomberg where we have got down to d-10 seconds and there has been a whole. [indiscernible] the last thing i remember doing is somebody flew into restrictive flights owns. i am almost certain it will happen this time. beyond that, it is on the spacex

website. it mirrors the process the falcon nine and dragon takes to orbit and servicing the international space station. it will meet maximum physical stress at 2.5 minutes. things like that, we know what is coming. that is a part to the fully autonomous system that drives the rocket and dragon. shery: we know there are fewer people lined up for future trips. what is the business prospect like for spacex? ed: apparently this is a supply constraint is this. -- business. you had a director saying they have plan missions. one company will take civilians to the international space station. he said they are backlogged, and the backlog is growing. at the end of the day, this is a rich man's sport.

you have the man funding this mission, paying for his fellow crewmembers to go up there. that is one of the questions i had for elon musk. what is the market for this? musk has talked about how spacex's lungs business tops out at $3 billion per year. is that just sending satellites? or does that include this private experience. it is hard to say. haidi: looks interesting is the relationship with nasa. we know nasa pay for much of the crew dragon development, but they can still sell seats? what is the dynamic here in terms of public-private? ed: excellent question. i spoke to nasa, we had a conversation. ultimately, nasa has had minimal involvement in the mission. they have not been involved in planning, training, risk

assessment, but they think it is a good thing. when they set out to do the program, they want to the private sector to drive this forward. they did not just want this to be the public sector. he reminded me that being a civilian astronaut is not the same as being a professional astronaut. that is why the training is so different. you are not just going up there to do a job. the crew will do scientific experiments. one will play a ukulele. they are still going up for the experience and experience along. these are not professional astronauts, and nasa wanted to underscore that. the public to be alive for that. shery: ukulele, nft, mission jackets, they will be auctioned off later. give us the context of the space race in the private sector between spacex, blue origin, virgin galactic. ed: we are very close to launch. 30 seconds. frankly, everyone says this,

spacex is ahead of the game in terms of long frequency and what they have achieved. blue origin started at the same time. let's get the count. [applause] >> [indiscernible] >> inspiration is go for launch. >> 30 seconds. d-15 seconds. -- t minus 15 seconds. 10 98 seven

3, 2, 1. ignition and looked off -- ignition and lift off. >> copy. >> pitching downrange. [applause] >> [indiscernible] >> throttling down in

preparation for maximum dynamic usher -- pressure. >> supersonic. [dull rocket roar] >> throttle up. >> we are through maximum dynamic pressure. >> copy. >> everything continues to be good. looks like a smooth ride for the crew. shery: spacex has launched forcibly into space -- four civilians into space. looks like a smooth ride, but we have to remind our viewers the

feed is a few seconds delayed. let's go back to ed ludlow who is seeing this live. walk us through what is happening right now. ed: incredible feeling on the ground. to hear the people around me as the engines fired up, that moment of maximum chemical stress, now your feeds are behind, but what we are looking for the main engine cut off for each of the nine engines shut down, any second now. it continues using its momentum going towards out of space, astonishing to say that out loud. the next thing to look for his first and second stage separation. the falcon nine rocket booster is made of two parts. the long, thin part with the initial thrust. you see it on your screen, incredible images. the rocket is actually now creating an incredible glow in the sky, and incredible aura.

we will focus on the live feed. we have a period of about five minutes where you get the second stage engine firing up. it carries on up towards its initial height before the final stage separation. i am out of breath. [laughter] shery: we are as excited as you are. haidi: it is truly extraordinary , the crew officially on their way to space. early on, you get them point of maximum pressure on the mechanics, on the rocket. what other pressure points are we watching for in terms of judging the success and safety? ed: the initial launch takes you through earth's atmosphere which is thicker. as you get into thinner, higher

atmosphere, you are to rev up the engine and build up the speed. when they do hit a top speed, it will be 7500 miles per hour. if you have only driven a car, you can't even begin to comprehend the geforce that the body is under. there was another milestone. the first stage booster, about seven minutes and 30 seconds after launch will be its first stage entry burn. this is how spacex has changed the game, the economics. the reusability means we can go again and again. it is now affordable for humans and civilians to go into space. that is what we are watching for on-screen. reporter: great view that you have. i am curious, eventually the crew dragon capital will

separate. give us an indication of how much astronauting they will have to do? this is a highly automated capsule. ed: you're exactly right. it is designed to operate autonomously. remember, things happen in space. history has showed us tragic and difficult situations can arise. a big part of the training is rigorous training through virtual reality, the vr headset and seeing what it is like. fire in the cabin, then doing that in a model of the capsule. what do you do if there is a fire? the hope from the spacex engineering team is they will

not have to do that. they will simply be able to enjoy the ride and around 2.5 hours time, beyond earth's atmosphere, i guess they will start to relax. get the ukulele out and do experiments i was talking about. haidi: hang on a moment. i want to bring in the managing partner of the venture capital firm investing in a space startup. she was an early investor in spacex. she joins us from houston where you are watching with norma's excitement. orbital will spaceflight underway. you talked about the significance of this. up until this point you said 95% of people in space have been professional astronaut. you see a world where 95% will be normal people. how scalable is this? guest: there are a lot of

factors in that. a lot of it has to do with competition like with any business sector. elon and spacex are doing a phenomenal job but there are companies coming up that will soon have human orbital launch capabilities, and as we have competition, we will see prices come down. as spacex continues to innovate, as the starship comes online, we will see prices fall even further. i envision a world where your normal family is deciding whether they want to go to disney world or outer space. i think that affordability is on the horizon. shery: why now? why are we getting the space tourism excitement in this decade, why not a few years earlier or later? we are now seeing the falcon nine first stage booster is about to land on earth. we are going to show you those

pictures as we get them. why now? let's listen. >> everything is going well. it is heading into orbit with the crew on board. >> they are your screen you can see the sunrise horizon with planet earth just behind the engine. >> stage two is in terminal guidance. >> stage ii. we are working the altitude. the crew is pulling about 3.5 g's. >> and 15 seconds we are expecting -- back to throttle down. second engine cut off. we will wait for the confirmation. at the same time, the first

stage will be given landing. there we have the impact. it just shut off the engine. [applause] shery: walk us through what is happening. of course, we are waiting for the second engine cut off as well. ed: is latency on the feed. what you are seeing on your screen is the booster touching down on the platform in the atlantic ocean. it's normal for the camera to cut out but they will take a different shop. what we are seeing on the right-hand side is the first quinces of the crew inside the capsule which is astonishing. we got the second stage engine cut off. really, the big milestone is

about two minutes away where we get that separation between the dragon capsule and the second stage booster. from there, this is where it gets to crunch time. at this point, spacex has several opportunities to abort. the way it aborts is it jettisoned itself from the first stage or the second stage booster. but there comes a certain point where you go past abort. but we do get the separation between the dragon and the second stage, it's open to the thrusters, open to the embers. it's common comfortable. haidi: we have another minute

until the separation sequence of the dragon. what are we looking out for, and is there a point in the process where they can actually relax? ed: is there one? at the 13 minute mark is the nose cap: on the dragon capsule will open and reveal a large window. when spacex sends dragon and astronauts to the iss, when the nosecone opens, that is what it uses to dock. but they are not docking, they are going 360 miles into space. that process is about 2.5 hours long. if there was ever a time to sit in a chair, ponder about life, ponder about your achievements, is probably the 2.5 hours where you are drifting off into space. shery: you can just imagine the view. we are talking about three days

in orbit. this will be the longest any human being will spend consecutively inside a dragon capsule. tell us about the magnitude of this experience. ed: defined achievement for spacex, because they have ferried astronauts to the iss. but, what happens is the astronaut top of at the other end. they board iss and live on board for a period of months. these guys will be inside dragon capsule for the longest consecutive period that any human being has done. you underscored that these are civilians, not professional astronauts. let's really interesting is to communicate with spacex, you are relying on satellite during lower orbit. you are relying on the sievers and ground stations. inevitably, there will be periods of time where they will lose contact with spacex. that is what part of the training has been. to know what to do, be patient.

that is astonishing. imagine silence in space, even if just for a few session -- seconds. shery: hang in there, we want to go back to our guest, the managing partner at . thank you so much for hanging in there. we are talking about this flight being all civilian, no professional astronauts. i was asking why we are seeing such a booming space tourism industry now. guest: i think it has to do with a lot of factors, a lot of things happening behind the scenes for years, 30 or 40 years, people whose names you may never know walking the halls of congress and changing laws and policies to make this even possible from a legal perspective. obviously, we have had the technology since the 1960's. but there was not the political will until this last 20 years or so.

on top of that, the financing. that's a big part of this. enter the billionaire cavalry, elon musk and jeff bezos and richard bezos, gas richard branson who were motivated, grew up in the era of apollo and wanted to see a private space industry exist to the point they were willing to put their own fortunes on the line. that combination of the changing political environment and financing to make this real is what is creating the business environment you are seeing. reporter: this is stephen engle and hong kong. i'm in a region where they are creating more billionaires than anywhere else in the world, they are probably watching with great interest. what do you think and what timeframe do we get down to the sweet spot? not everyone has $100 million or billions of dollars to pay for this. i think the next big civilian

flight is going to be a $55 million ticket. what is the sweet spot to make this space tourism takeoff? guest: there is a lot of different opinions about where that elasticity is. is it $1000, $10,000, $1 million? where'd you get to the levels where you have a robust customer environment but also down to an affordable level. there is a lot of different theories about that. what i'm interested in is when it becomes affordable for your normal family. i think that's probably 10 or 15 years away, but definitely within our lifetime that we will see normal people so to speak vacationing in space. the axiom flight coming up next year, those tickets are $55 million. to ride on a richard branson

flight is different because it is sub-orbital, $450,000. space balloons are $125,000 a ticket. there will be a lot of different experiences just like with any tourism market. you're able to pick your own adventure that's right for you. haidi: what is the timeline for starship and how does that change the game in terms of human space travel? guest: that is going to be a huge game changer both for the human space travel market but also the cost of getting non-squishy material, whether those are satellites or fuel up to orbit. you showed the great chart a moment ago about the significant drop in launch costs over the last 20 years. that's going to happen because

of starship. as we get that cost down, you're going to start to see all kinds of new business cases open up. they will close that $100, $200, $500 a kilogram. the ability to take 100 people to space on a starship, even if you do not go to the moon or mars, just taking 100 people to space will be a huge game changer. right now, humanity's only interaction with the frontier of space has been up until now professional astronauts on the space station. it takes 2.75 people just to keep the space station up and running. sometimes they're only three people on station. that means there is one quarter of one person's time doing all of the intellectual property, all of the thinking about the universe. all of the art and music and development is one quarter of

one person's time, and that person is a government employee. how is that going to change when you have 100 people going to space at a time? what new business models and adventures are going to come from humanity is anyone's guess. ed: there was a netflix documentary series following the crew for months, ended in one scene they debated the merits of going to 360 miles. i asked about that, and he basically said the original goal for spacex and by making a 360 miles. my question is driving progress relying on people to put up their checkbook, or saying, we need to pour capital into the

industry as fast as possible. guest: i'm of the opinion we need to pour capital into the industry. that is what is slowing it down, lack of capital. elon has an incredible ability to raise capital. bezos is using his own capital. is that really sustainable? no. nobody stays until somebody pays. not by economic reasons. if you want space settlement to be a reality, there has to be an economic backbone. spacex and others are starting to prove that case. as we are seeing more revenue. as i am sure you have covered on

bloomberg, we have had so many public market exits showing that this industry is starting to get to a level of maturity where we can expect good revenue numbers quarter after quarter, we can have these public companies that are gaining significant market shares. what we are seeing is just the beginning. we're focused on infusing capital at the early stages. space companies that make the news are a few bright names. at the series a level they need capital now and they will continue to need growth capital. they might not have a billionaire, and that is what

continues to feed the bottom of the pyramid. haidi: that is how you play it as a vc. how do you identify compelling investment opportunities in the new gold rush? shery was interested in whether you see opportunities in chinese space companies. guest: from an investment perspective, the chinese market is interesting. how much are these companies -- anyone's guess. around the rest of the world, i will say retail investors beware. not every space company, just like with any sector, need to do due diligence. be wary of companies right now that are pre-revenue companies that have gone public.

that might be a level of risk that your average investor is not willing to take. pay attention to the numbers, pay attention to who and what is backing these companies. i think there is going to be a lot of really interesting public market opportunities -- there should be a wide variety of companies for retail investors to choose from. there are several ets up and running that allow a little bit more of a portfolio for retail investors. i think there will be a lot of opportunity for investors across the board in this industry in the coming years. haidi: so great to have you with us, an early investor in spacex. bloomberg's ed ludlow is at the kennedy space center, stephen engle and hong kong, as we mark

this momentous day. spacex successfully sending those civilian astronauts into orbital spaceflight. really just one important step into making human spaceflight more of a commonality. let's take a look back down to earth when it comes to markets, we are looking at a modest picture when it comes to trading in asia. some preachers, the nikkei flat at the moment. some growth concerns are proceeding, we are seeing a few days. the dollar-yen is holding steady, we saw some saber rattling from north korea with the testing of that summary missile, south korea weighing in as well. pretty calm, the japanese 10-year yields looking, at the moment. speaking of the koreas, this is what we are seeing when it comes to the kospi. trading lower at 2/10 of 1%, and

the won seeing upside with dollar weakness in play. here in australia and new zealand, we have the blowout gdp number from the kiwi, watching the aussie

shery: asian stocks are trading pretty steadily at the moment as energy continues to hold out the events. sophie kamaruddin is in hong kong. sophie: until gaining ground. this as we have a note out from bank of america citing what calls. you have green batteries as well as green mining as among the tallies. we are seeing the kospi in led

lower by 2/10 of a percent to -- kospi being led lower by 2/10 of a percent. softening the stance on nuclear power. local leader reporting he will not replace or build nuclear reactors. uranium players on watch in sydney with australia set to acquire nuclear powered submarines that will be built domestically in pact with the u.s. and a u.k. signaling an end of the deal with france. amid the rally in uranium prices, bmo says will demand -- will depend on chinese demand. we are seeing the call back losses we saw midweek with miners leading. the qe dollar lifted -- the kiwi dollar often. we have bets rising for the rbnz

. you can see the move in market pricing. now seeing a potential chance for a 50 basis point rate hike next month. shery: let's discuss the broader markets and bring in the joint head of equity research. great to have you back. . we are seeing japanese oil stocks rallying right now given that we do have crude prices around the six week high. we know that those industrial stocks take about a quarter of japan's equity markets. can they actually lead their way higher despite the rally that has taken the topics up already this month? >> japan is different from other asian markets. if you take markets like korea, china, taiwan, they are focused on tech. japan gives you a broader market benchmark.

china, the top 10 represents 50% index. japan has a very broad industrial base. the consumer has got tech and brought industrials. it is a much less risky market from a stock specific point of view. i gives investors a lot of comfort right now. shery: a lot of uncertainty and specially in china with the news of evergrande. what can we expect in terms of equity markets? >> we need to look at china and the way china has a system of planning. china has these five-year plans and it laments these plans precisely. it has had a great deal of success. the way it views the equity market is not a similar. in the past when the equity market has been weak, the chinese government does care about retail investors. it does have this plan to get

involved if the market is very weak. 11 investors are waiting to see of china's national team does by the market. it comes down to who owns the company. is it the shareholder? is it the supplier? is it the government? you think about the social responsibilities of companies. this is something chinese authorities are putting in place with a lot of the gaming companies. if you look at western societies including the u.k., many western societies like to limit the power of some of these tribal enterprises. haidi: you would not see it happen in such a director way. in terms of the transparency in the put it debility, is that the main issue? would you invest in a sector if you think privatization would be around the corner? >> i think that is the point.

most western investors have time horizons which are relatively modest in size. pension funds are judged on quarterly performance targets. if you think about china, it's view is much longer term. the way the ccp sees things, goes back to almost the middle kingdom when china was one of the world's preeminent powers in the 1850's. if you are a local investor in china, the government will try to put in place some kind of protection. look for companies that are paying growing dividends. as a beneficiary, you can hedge things like inflation. you can be a minority investor by china telecom and china mobile nba participant in government owned vehicle. the government will do its best to ensure it remains solvent. haidi: do we see another leg up for the cyclical seem particularly in market like japan if we do end up getting

through these economic growth and revival policies? >> i think in japan there is almost a meeting of top-down factors and bottom-up factors. one thing i track every day is we cover over 600 stocks in japan. one thing we produced daily is a summary of up raids and downgrades. everyday this week, i have seen more upgrades. five upgrades today, a company that manufactures yogurt. domestic demand i think is quite strong. on the other hand, you have these macro factors that are positive. investors are a bit cautious on china. if you want to be invested in china, buy japanese equities. by investing in companies, you get exposure to china without the governments risk. you have foreign investors

pushing into this market at a time when yaws have a change in leadership with the ldp. possibly someone who is a bit more charismatic. japan is in a sweet spot right now. haidi: joint head of aipac equity research. the european central counts inequality and the climate battle as one of the biggest challenges for europe. she spoke exclusively to david rubenstein for his upcoming episode of peer-to-peer conversations. >> i think the single biggest challenge always is to deliver. it is to implement. there are lots of good intentions but implementation sometimes is hard. i think the second difficult area that will need to be tackled is the issue of inequality.

covid-19 has an oldies. the third one is climate change. we'll have to transition faster than we think, which will imply transition cost, which will imply a change in the overall structure of our economies. i would say those three. implementation, inequality and climate change. >> what has been the impact on the european central bank or the european economy if any on brexit? has it been as bad as some people have predicted or better than people thought? what would you say? >> i think the conclusion varies depending on which side of the channel you are on. from our perspective, it is a sad development and we certainly have lost the benefit of excellent cooperation with the bank of england. we try to continue to maintain a good relationship because we have lots of links between us.

in terms of trade, it has been certainly a loss for the u.k. more so than for europe. we will see how it goes. all i can say is it is a disappointing time. europe is coming out of the crisis not with flying colors yet because a lot of work needs to be done but stronger than we had expected. u.k. is having a more difficult time at the moment. >> part of the way you help to deal with the situation in europe during covid was that you had the package you referred to, a very large package, financial stability package. that package involves countries borrowing money against their own abilities to pay it back. were not a guarantor but you are making sure they will not default. are you worried about you much debt of mine european countries -- among european countries? or is that not a big problem

right now? >> all countries around the world had to increase debt to gdp. when you had the high debt increasing at a big fall in gdp, you end up with those ratios. higher and are higher than what they experienced before. there was no choice but to do that. had it not happened, i think the story of the pandemic would have been a lot worse than what we had seen. now it is a question of directing to the right investment. making sure the economies are going to but -- to bounce back in the right structural reforms that will improve the productivity of those economies, positioned them to be more digital and to be greener and i believe is next generation e.u.,

which was voted a year ago now is going to help with making countries better converge and reduce the gap that existed between some of the southern european countries and the northern countries. haidi: the european central bank president speaking exclusively with david rubenstein. you can see more from her as she speaks about the e.u. on the next episode of the david rubenstein show. you can watch them on bloomberg tv at those times. coming up next, more on the newly announced defense deal between australia, the u.s. and the u.k. a shakeup for geopolitics. this is bloomberg. phie: -- ♪

haidi: australia is joining a new indo pacific security partnership that could pave the way for it to acquire nuclear powered submarines. the pact comes as china expands its military presence in the region. let's start off with the applications for australia. >> the key thing is that australia will acquire nuclear

powered submarines. this will be controversial in australia as there is no civilian nuclear program at the moment. there is a research reactor on the outskirts of sydney but that is it. there is no shortage of raw materials. australia has plenty of uranium. there is not a great bit of detail. it will be an 18 month period to figure out the next steps. the process is likely to take decades. prime minister scott morrison flanking that will happen in south australia but we have no word on how much that is going to cost. we have another alliance in town. will be working alongside the leaders. shery: are we expecting china to react? paul: we are waiting to hear from china. initially, you would expect probably not terribly well. china was not mentioned once during this entire announcement.

president biden speaking of a changing security environment in the indo pacific that required a response but the subtext of all of this is quite heavily inferring china is the cause for this new alliance and for australia acquiring this capability because we see china making claims in the south china sea, building artificial reefs. these things cannot be annoyed. china has already issued trade strikes across australia for a variety of other issues. it is hard to see this development and that situation. there is another issue in that australia had a contract with france to build the next generation of submarines. that was a $90 billion deal. the former french ambassador to the u.s. saying today australia has stabbed france in the back. the cancellation of that deal carries a fee of $400 million. shery: bloomberg's paul allen for the latest on the diplomatic relations. let's get to vonnie quinn with

the first word headlines. vonnie: gains in japanese exports slowed for a third month in august as the delta driven coronavirus wave weight on the global trade recovery. the value of japan's overseas shipments increased 26.2% compared with last year's levels. there was a slowdown from july's 37% to economist have been forecasting a 34% advance. on a seasonally adjustment basis, exports edged up 8% from july. pfizer says data from the u.s. and israel suggest the efficacy of the covid vaccine or wanes over time. a booster is effective. the company detailed the data in presentation. the panel is expected to make recommendations on whether more americans should receive booster shots. simone biles says the fbi turned a blind eye to the sexual abuse

she and other young athletes suffered at the hands of former usa gymnastic dr. larry nassar. testifying before the senate judiciary mitty, she said the system enabled his abusive more than 100 women. he was convicted in 2017 to he is serving sentences that amount to life about parole. spacex is -- has his escalade launched four civilians into orbit. the crew including jared isaac men will spend three days orbiting the earth. the capsule reached speeds of 17,000 hours an hour. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. haidi: we are getting the clearest sign yet of liquidity crisis at china evergrande group.

chinese authorities are warning that evergrande will not be able to make interest payments next week. let's bring in rebecca. again, an incremental development. how does it add up for evergrande? >> this really is the clearest assigned so far of the extent of the debt crisis we are seeing at evergrande. this missed payment on loans, which is quite a standard deadline that comes around on september 20. of, adding to worries given that evergrande has just also hired its financial advisors to -- advisors, two firms famous for restructuring. shery: when it comes to the wealth management products, we saw protesters gather outside their headquarters. what else can investors do? >> that is a really challenging thing.

from the retail investor and the wealth management product point of view, the risk for chinese authorities is that the only form they have is to protest either at the headquarters or offices. there is a danger that spells out more broadly. evergrande has influence across china. from an investor point of view, we could see some investors also moving to organize, potentially we may see ad hoc committees. we may cd them -- we may see them hiring legal advisors. haidi: it would not be in evergrande hit without talking about systemic risk to the market. does this move the needle? >> so far, not yet. we are seeing pockets of resilience in china's credit markets. and more broadly in its financial markets. this key date that is coming up will be september 23. that is when the coupon is due

for its dollar bond. it would be the first major miss, first major failure of this type on a public debt we have seen. that has caused -- if we consider evergrande has just hired restructuring advisors, the question is if they are intending to enter into restructuring, whether they will still pay the coupon. that will be the focus coming into next week. shery: our china credit editor again with the latest on evergrande. be sure to tune into bloomberg radio to hear more from the big newsmakers. get in-depth analysis from the daybreak team broadcasting live from our studio in hong kong. plenty more ahead. stay with us. ♪

shery: a milestone for spacex, which is launched civilians into orbit for three day voyage circling the earth. the flight has no professional astronauts on board and will rely on the capsule's autonomous capabilities. it is the first of several private spaceflights planned by

spacex with the next scheduled for early next year. you know me very well. i am not one to get excited about space lunches but i have got to say this one was pretty exciting because you look at all the space lunches and you are thinking, it does not apply to me. in the future, it could. there was no professional astronaut on board. there were four everyday people going to space to just look around. it is pretty fascinating. haidi: absolutely incredible. when we spoke to megan earlier, she was saying could get to a point where we could get to a point -- getting to a point where we could say we want to go to disneyland or go to outer space? just incredible. they look so relaxed as well. this is being seen as a renaissance in human space transport. shery: would you go for holiday to space if you could? haidi: in a heartbeat but i -- i

was talking to one of our producers and he said, i need to know what is on the menu. who are these people i'm traveling with? how long do i have to stay seated? so many questions about what it is like i know they will be documenting every aspect of that. shery: it is not like you can get off if you don't like your colleagues. these people a been there for three days, which would be the longest time human beings have been aboard the dragon capsule. you say in a heartbeat. i would not pit i like earth. i like having my feet firmly on the ground. let's turn to sophie for a look at some more tech stories, especially with electric vehicles in china. sophie: that is right. looking at the future of eb, -- of ev, china's industry faces new regulations to spur consolidation after a decade of policy support. there are about 300 ev makers. at diebel capital, such large

firms will likely gain more market share. authorities are intent on concentrating the market to nurture stronger companies. the quote for the ministry in china. amid the global decarbonization drive, billions of dollars being invested in the industry as sales ramp-up led by local chinese brands. haidi: thing with china, i know you are watching the story as well. casino stocks as we get closer to the start of trading, this is what we are seeing when it comes to the prices paid declines and up to over 30%. this as we saw macau gaming operators plunging to record lows. we did have the government drive the increase direct supervision.

the gaming index sinking as much as 20%. some much steeper declines among sands china and wynn macau. shery: we are seeing gains and a rebound from the previous session adding to those highs we have not seen since 1990. energy leading the gains given that oil is under a little bit of pressure right now but it is near the six-week i. the kospi down 3/10 of 1%. reversing those gains we saw in the previous session. the korean you want is holding -- the korean yuan gaining against the u.s. dollar. foreign investors avoiding south korea. kiwi stocks unchanged after we got the second quarter gdp beat a well ago. we will have more analysis on what is next for macau's gaming sector with the managing partner

bentley. -- partner ben lee. bloomberg markets china open is next. this is bloomberg. ♪

>> this is my kitchen table and also my filing system. over much of the past three decades, i have been an investor. i started interviewing. i have learned from doing my interviews how leaders make it to the top. >> i asked how much he wanted, he said 250. i did not negotiate. >>