>> welcome to "daybreak asia", we are counting down to the market open. shery: asia faces another challenging trading session as fed officials try to sooth concerns about more aggressive rate hikes. china stocks pose for their steepest weekly losses since may on a report alibaba is under investigation over a massive data leak. plus, jp morgan and morgan stanley don't disappoint, but recession fears are brushed aside with up outlooks. haslinda: global finance chiefs are gathering to talk inflation debt and oil about russia's ukraine invasion is souring the mood. >> take a look at how u.s. futures are trading at the moment, we are seeing upside after the s&p 500, some of those

earlier declines of more than 2%, given some fed officials comments that could relieve investor anxiety that we might see those really aggressive rate hikes, we have the bank index, given the disappointing earnings results from jp morgan and morgan stanley, but the nasdaq 100 ended in positive territory, we actually have a two-year yield going back from those earlier gains, and actually fallen, but we have those 100 basis point rate hike bets being pared back as well, we are seeing a little bit of a rebound in oil prices up 6/10 of one percent, still below that $100 per barrel, given that we continue to see, concerns about a potential recession. >> insight when it comes to these sessions setting up since friday, we are seeing recession fears, global macro head -- macro had winds way, we could see good news when it comes to

friday's china data, the domestic data dump, including industrial production, retail sales and property investment sales, the jobless rate, and we could get pretty good numbers. that may be the last of it before we start setting up with some pretty big challenges going to the second quarter. futures are up by a 10th of a percent. early getting into a start that could see downside of potentially close to one percent. also watching new zealand with session lows. we had data out earlier suggesting is this activity sentiment, forward-looking indicating and suggesting to see weakness and falling below that level of 50. dollar-yen is one to watch. we see that risk aversion play out. interesting, still over 139. that fresh 24 year low. the aussie dollar really you losing some of the tailwinds we got from the labor market that we had, really the lowest job rate since 1974, getting

short-lived positivity for the aussie. shery: we have a bloomberg exclusive, sk hynix is set to weigh capex by a quarter in 2023. we are talking about $12.2 billion, given the slower electronic demand and anticipated according to sources speaking to bloomberg. sk hynix is the second-largest memory maker in the world, and it spent about 21,000,000,000,001 spending up in that capacity. but we have seen this rising insert -- rising uncertainty over the industry. this is apples supplier in global tech companies now sounding the alarm over the macro economic risks from rising interest rates. we heard something similar from tsmc earlier this week as well, but it could trim spending on expansion by as 9% this year from initial projection. we will be watching this very closely at the open and south korea as bloomberg has learned that they are weighing slashing

spending by a quarter in 2023. haidi: the bloomberg dollar index jumping to a fresh record in terms of the recession, inflation fears are growing. that's bring in our correspondent for asia. garfield reynolds. we talked about this virtuous cycle of gains for the dollar, and it just continues. garfield: yes and no, it could stall out, depending on what goes on with the rate cut, it was very interesting in the market basically asked the question of the fed, does 9.1% annual inflation means 100 basis points of hikes. so far the answer means no. we will stick with 75. so, if we do get that slowdown in expectations that the fed will just keep accelerating no matter what, then if we have the

slowdown in expectations, we could get a slowdown in the dollar. that's from the u.s. side. from the other side, what's been going on in europe in particular, that's a huge part that the euro keeps on striving and managing to more or less hold just under or just above and parity with the u.s. dollar. how that now plays out will say a lot about how far the dollar can go and how sustained that will be. with that we are looking forward to the ecb's coming meeting where it's expected to raise rates and then give guidance on how much it's going to raise rates. we are also watching what happens with the gas situation with russia. shery: how are markets going to react to all of this tightening? not only from aggressive rate hikes from the fed, but just around the world? we got australia job numbers and that said we might see a hike

there after wet canada, new zealand, bank of korea, you name it, it seems everybody is tightening at this point. garfield: with australia, a lot depends on the cpi figures in a couple weeks time. the other thing that was helping to drive those at 75 basis point rate hikes from the rba was the sudden expectation that was -- that it was a good chance the fed would go 100. if the fed goes 100, then it's hard for the rba to only go 50 unless you get a soft and relative expectation cpi report. the fed is possibly undergoing 75 and of course the rba will know that before it leads to the borders. if it only go 75, that might lead the rba to do lists. the for markets, the more important thing is, what's going on with inflation versus recession. we start to see some traction from these rate hikes and at

least helping to keep inflation. if we do, then markets will actually see that as positive because then the rate hikes can slow down. if we don't, if it stays on no matter what central banks do, what he much all asset classes are in trouble. haidi: garfield -- shery: garfield reynolds, mliv contributor. of course we are also watching for china's data dump later friday. it was show how big of a tolls shanghai's lockdown has taken on the nation's economy, with some economists forecasting a contraction in the second quarter. our global economics and policy editor kathleen hays is here with a preview. these are very backward looking numbers, but it will give us a sense of where we are at when it comes to the lockdown. what are we expecting? kathleen: when it comes to china having any chance of even getting close to its 5.5 percent growth target for 2022. let's start with what the forecast is.

actually, we will see shrinking gdp by a pretty big amount and the second quarter of the year. second-quarter gdp is supposed to rise 1.2%, that's not even a third of the 4.8% increase in the first quarter. estimates are pretty wide from as low as 1% to 3.8% in our bloomberg survey. loom break economic said it could drop 2% in that three-month time. and this is something that you have to wonder how will they ever get to that five point 5% target. but there is maybe some hope. we will look at the june and the wider numbers that haidi just mentioned in retail sales, for example. if we look at the economic activity indicator, 0.3% year-over-year. this doesn't sound like much but it was down 6.7% year-over-year in may. up 4% year-over-year, that's the forecast versus a tiny 0.7 in may. china's fixed investment property has been up -- after

being up 6.2% the previous quarter. bottom line, as for the people's bank of china and the medium-term lending facility, that rate, which will be half of it, we will keep it at 2.85%. we have big rate hikes and other parts of the world. there's a 220 stimulus package that the chinese government is looking at to put into infrastructure. one more thing about the gdp report i think is interesting. we have one bloomberg story suggesting there's a lot of concern about how accurately the second-quarter gdp number will be predicted. one economist predicted there's no way gdp could be a positive number in the second quarter. probably down 1%, but the government may not want to show that kind of number at a time when they are trying so hard to keep the economy on track, show that they can meet that target. we will see what we get today.

that's something we will deal with. it's interesting economist in the region are talking about that as well. haidi: a fine balancing act for beijing. kathleen hays there. let's get to the big bank earnings, morgan stanley's revenue plummeted last quarter. it underlines a slow quarter for wall street, a gloomy outlook for the economy blurring the path forward. he leads our coverage of u.s.. we talk about this gloomy outlook of a lot of insurgency, interesting is at -- interesting that we saw an optimistic tone from jamie dimon. grexit cells like we had a tell of two economies in a way. on the one hand we had jp morgan con morgan stanley co really touting the strength of the consumer, the u.s. job market is strong, consumer spending is strong, credit card loan growth is healthy. they have intense insight into

consumer health and they said they studied the data and they are not seeing weaknesses. he said any recession will not be deeply dramatic and jamie dimon said that consumers are much healthier and less leveled going into any recession at this time. on the other hand, they painted quite an uncertain future picture. dimon reiterated, if you recalled, he had a sudden economic hurricane on the horizon. diamond said the pictures complicated with inflation of higher gas prices. the consumers in good health now , a lot to be concerned about on the horizon. shery: we have learned that we might see huge fines when it comes to the texting habits of some of these employees. >> not only where the numbers bad today but there were other notable -- other notable things

today as well. morgan stanley disclosed it will pay two point -- 200 million for this record-keeping probe into the misuse of personal devices at work. it's a wide ranging probe and bloomberg news reports other banks have fines amounting to one billion in total. back on the numbers themselves, jp morgan admitted estimates. jp morgan and morgan stanley posted a 50% plunge in investment banking revenue. so potentially souring loans and notably suspended buybacks. so there was a lot of bad or cautionary renews and earnings today, and tomorrow we will bring wells fargo and city, so we will have the banks that set the tone today. what's to come tomorrow should set the tone. shery: we will see what happens

with shares plunging. our coverage of u.s. finance with the latest on earnings. we have a bigger interview. don't miss our exclusive conversation with the philippine central bank governor after they surprised market by delivering an off cycle for a basis point hike. for now, let's get this to keenan with the first word headlines. >> we begin with the federal reserve governor who has given his report for a 75 basis point hike after the latest inflation report. he says he could go even bigger if they add his vote will depend on upcoming retail sales and housing data do ahead of the meeting. >> based on the labor market, it is just inconceivable to have a recession with an unemployment rate at 3.6%. >> it is a bid to avert a political crisis for financial

markets, but leaves the door open leaving the government until elections due next year. the chaos was triggered after the main coalition in the movement criticize the economic policies and boycotted the confidence vote. sri lanka's prime minister has had his rez -- regulation of the parliament speaker. he took the official steps after arriving in singapore having months of antigovernment protest. protesters are still occupying government residencies as they continue to push for new leadership. japanese prime minister has as for as many as nine nuclear reactors to be online this winter to do an expected power crunch. reactors were shut following the fukushima nuclear disaster back in 2011. it has been restarted, although some are wanted for maintenance. operators are required to go

through a rigorous regulatory process. global news -- global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. i'm su keenan, this is bloomberg. haidi: u.s. treasury secretary janet yellen says russia has no place at the meeting and will they gala -- gather in bali? more on the fed inflation on the markets. marvin now joins us. this is bloomberg. ♪

>> it is a range of potential outcomes from a soft landing to a hard landing driven by how much rate goes up with quantitative tightening, defective volatile markets, it's

not going to change how we run the company. we manage it before and we will manage it again and i'm comfortable we will do it well. >> we might head into some form of recession and i like others have tried to handicap it. i think it's unlikely to be a deep and dramatic recession, at least in the u.s. the environment is complicated, lots of insurgency, but frankly, for our business model, i think we fare relatively well. >> based on the labor, it is just inconceivable to have a recession with an unemployment rate at 3.6%. shery: voices on recession risks. let's bring in our next guest where who's getting more anxious over how central banks may need to get. joining us from singapore, seeing global macro strategist. good to have you back. housing zaidi to freighting your

preference for different asset classes? >> i think we are getting to the point where we see how aggressive the monetary policy has to get. not only from a neutral perspective, but from a restrictive perspective. it's something we have known all along. we look at it from a valuation perspective presuming the employment environments that -- that some of the clips we were talking about remains fairly robust. ultimately, that's with the hall monetary tightening is trying to tamp down. >> are you cognizant of potential recession risks and what that will do to the yield curve? we have seen it inverted in several parts. >> absolutely. i really thought the inverted yield curve would be something difficult to avoid. certainly we had volatility around it this week.

i think it will remain inverted because that recession and the depth of the recession is something the market is trying to grapple with. we put that against potential equity valuations, credit spreads, which have gotten cheaper, no doubt, but relative to prior recessions they are still not at those levels. >> when you take at the -- look at the opportunities and risk, are there some plays in some countries you think would be better hedge against recession risks, because there are the moments of growth. >> it winds up being more and more difficult, especially if you talk about a recession in the states are in the develop markets and what that does for the dollar. i think the dollar is dictating a lot of the emerging market discussions and dollar strength is something we continue to

express as we have these times of volatility. the yen becomes interesting because is so undervalued. ultimately we get to a point where once we know what the policy curve will look like, that we can start getting a little bit closer to maybe seeing compression of the yield differentials, which is been so challenging for the yen to ultimately get over. >> if you went to a longer-term perspective, how sensible would it be for allocating to u.s. tech at the moment? >> i think that's where my mind is going right now. if i do expect a flatter curve to emerge, if ultimately the markets view is correct, more rate hikes mean cuts later on because inflation comes under control, you have to think about duration again, the current play is a long duration type of discussion. u.s. assets have a longer

duration on the equity side of things and you look attractive in an environment once we get there. it can be completely cognitive that we have volatility between now and that kind of clarity. shery: marvin, good to have you back, seeing global macro strategist at state street joining us from singapore. we do have an alert on the bloomberg, we are getting the latest lines from president biden strip to the middle east, his first since taking office, he will meet for saudi prince at 6:45 p.m. israel time, that would be 11:45 a.m. eastern. remember we were watching this very closely to see where the president withstand when it comes to trying china have saudi arabia pump more oil, but at the same time having the meat saudi crown prince mohammed bin salman , we know he has really been blamed for the murder of jamal khashoggi. president biden said he will raise the issue of human rights in the upcoming meeting with the saudi prince, but he hasn't

particularly committed to bringing up the murder of jamal khashoggi. now we know that that meeting will take place at 6:45 p.m., israel time. 11:40 5 a.m. eastern. you can get up around up of all of those stories that you need to know to get your day going on daybreak. terminal subscribers go to dayb , it's also available in the bloomberg anywhere app. you can customize your settings so you only get the news on the indices and assets that matter to you. this is bloomberg.

>> a quick check of the latest business headlines, singapore has takeover interest about coming back to the asian travel head. sources say mgm resorts recently approached the controlling shareholder on a possible deal.

while the discussions and it lead to it agreement, others have been studying this. u.s. and china stocks tumbled that alibaba faces a new worry over a data theft case. authorities in shanghai some of the executives from the cloud division. the report says the security resources -- researchers concluded that databases were hosted on alibaba's cloud platform. raising the 2022 revenue forecast while warning the spending on expansion by as much as 9% for projection. the move would place the uncertainty about electronic demand in the face of a global recession. the ceo warns that is too early to go into specifics about spending plans or the outlooks for semiconductor demands in 2023. coming up next, we will take you live to the g20 session of the primettes ministers -- finance ministers -- taking place in bali where hot debate is

expected to take place when it comes to the role of russia after its invasion of ukraine. lots more to come. this is bloomberg. ♪ this is xfinity rewards. our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!!

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su: this is "daybreak asia", i'm

su keenan with the first word headlines. the fed inspector has said that jerome powell and the former vice chair did not break any laws or rules. the watchdog was examining trades made by a financial advisor to a powell family trust during a blackout, but found no wrongdoing. they will force trades in 2019 and 2020. inquiries between dallas and boston fed banks are ongoing. president biden says the u.s. will not wait forever for iran to agree to new rules around its nuclear program. we will join the press conference with -- during the press conference, he knew what it would entail and repeated that it would never let iran acquire a nuclear weapon. he's on his first trip to the middle east as president with the key issue. russia's government has made a plan to create a national oil

benchmark next year. a team at bloomberg shows key and ministry domestic producers are looking at oil trading for a national platform in october. they will work to address foreign partners for the pricing benchmark between march and july next year. chinese officials are proposing an end to a near two-year ban on australian crude import. tensions are easing in their concerns about why when western sanctions on russian energy began. officials are said to be looking to boost fuel supplies to avoid -- ahead of the key party conflict. global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. i'm su keenan, this is bloomberg. >> an impasse over an economic fallout is hanging over the foreign agreement -- for us, one

of them is to -- take a look at the communique talks about the tree -- the g20 nations working to cooperate issues like the food crisis, also setting up a creditors committee to help a country called zambia to restructure its debt. until now, it has been unable to do that because it has not been able to get china on the table. zambia is of course the first african country to default during the pandemic, and it's been wanting help. it did address the issue. but there has been a lot of disagreement in the tone has

been confrontational. we have from janet yellen, the u.s. secretary of state saying the u.s. has no place at this g20 summit simply because the government's actions of the government does not observe international laws. that is the tone in the approach that the u.s. is adopting. if you take a look at the drop comedic gate as well, there has been an admission for what was the war in ukraine, supply chain and that is simply because leaders cannot agree on the cause of all the problems that the world is having right now. and this is the backdrop against with -- which this meeting is being held. whether a recession will take place. i put that question specifically to the ceo of standard chartered, bill winters, who was involved in a roundtable dealing with the issue of sustainable finance. take a listen. >> our house call is finally

balanced. it's likely to be next year rather than this year. personal biases a little bit more negative, and its entrenched to require some severe central-bank action. and is very hard for me to see how we escape any kind of recession at all in that scenario. with that said, let's keep a few things in mind, we are setting with a stronger economy with strong balance sheets and a strong financial system. banks are in good shape. the finance sector is in good shape and relatively small. if erwin we have the recession, it will be relatively shallow and short. >> yes we have the likes of jamie dimon worrying about the hurricane in the horizon. don't you see that hurricane in the horizon? >> jamie talked about storm clouds and there are definitely storm clouds, inflation is a big storm cloud.

the russian invasion of ukraine and all the economic consequences of that are representing big storm clouds. lots of things can go wrong. keep in mind we are starting in a pretty good place with pretty strong underlying finances. that is the thing that could keep that storm cloud from turning into a hurricane. haslinda: even if we don't have a recession that would be a slow down, are you reassessing your plans? >> we are full speed ahead with our investment plan. our viewers the economic downturn and there will be an economic downturn. this is the economic downturn that one invests through, not one runs away from. we continue with our investments here in asia across china, etc. we are opening up new banks in saudi arabia and in egypt and elsewhere. we are investing in our core capabilities around sustainable finance, which is according to

the team of g20 meetings. we are hiring. haslinda: how is growth looking, what are you anticipating? >> what we said to our shareholders in february is that we thought we could grow our income line at 8% to 11%. that's with rising interest rates in the context of inflation. while rising interest rates are bad for the economy, that's why they go up, it's to slow down the economy, they are good for banks. so we get a bit of a tailwind. our underlining business is growing strongly. trade is growing, but financing and investment is growing. it's not growing in a straight line. obviously we look at some of the headwinds we faced in china. right now we have covid related lockdowns. in hong kong in the year we looked at our wealth management.

pressures come from uncertainty in the equity markets. these are transitory things. the underlying structural drivers in our region are the opening up of china's capital markets that are moving out pace , is the steady reconfiguration of supply chains, but accompanied by a increases in trade. haslinda: that was bill winters speaking on the sideline of the g20 meeting. it all kicks off this morning, russia, fault line in the way of significant progress in talks. shary: haslinda amin joining us. we have plenty of big interviews coming up. the ceo of indonesia, the investment authority joining us live from bali along with the eoc be secretary general. it will be speaking with bank of indonesia governor and indonesian finance minister. and this is how we are setting

up for the major market open across asia. we have u.s. futures gaining a little bit of ground in the asian session after stocks fell in new york but closed well obsession lows. bringing some relief to investors that were anticipating very aggressive rate hikes. we continue to see their pressure and futures. remember we had the very, very strong jobs report, really giving rise to the jumbled rate hikes on the rba. kiwi stocks at the moment not doing too much while nikkei futures are higher. we are seeing the japanese yen continuing to weaken against the u.s. dollar, first 24 year low. 140 insight. plenty more to come on "daybreak asia", this is bloomberg. ♪

shery: high inflation has been a buzzword for investors in market makers, but it's also causing real pain, especially in emerging markets and among minority groups. for more on the social and economic implications, we are joined by the founder at ascension worldwide, a firm focusing on diversity and equality. great to have you with us. give us an overview of how painful this has been for the world's most vulnerable, at a time when prices continue to search.

christopher: definitely, this is been a challenging experience for many people, but as you mentioned, when you look at wealth and pay equity issues on a global scale, and how the pandemic has impacted the market, especially in asia. it's really challenging when you start to think about how do you move around at about this city. how do you find food, how do you build better opportunities for income when 50% of the hospitality market was wiped out. so this is a trend that we are seeing on a global scale. we see it in europe, the u.s., asia. and when you start to look at the pay cap for women, and you start to look at the disparity in terms of class bias, that was already prevalent and it's even

more prevalent in developing markets. so it has been an issue. >> telus a little bit about that disparity that we are seeing in the workplace, and along which lines you can see the biggest divide. quite sure. workers, i was just talking to one of our consultants in the philippines and 50% of skilled workers were laid off in different markets. and so when you have that situation where people are already struggling to make ends meet, and then you take up income -- you take in and the household retake two incomes out of the household, now people are trying to figure out how will they provide for themselves, how will they provide for their kids, how will they get transportation? going back to food, fresh food and water. these are some of the things that have trickled down into the different markets, but obviously we could see it hit hardest in the hospitality. so, again, you are going to have

more skilled labor or unskilled labor and skilled labor working in those markets when you're are looking at developing countries or degree positions in different countries. you are going to have that disparity where people are going to have more resources, more opportunities to maintain. quakes in your consultant specializing in leadership issues. especially for huge corporations. what you tell these businesses to do in order to increase diversity and just improve equality in the workplace? quakes one of the things we look at is a policy put in place to support more inclusive hiring of people who are different races or people from different classes based on education. one of the requirements, take a look at them and see if they are actually needed in order to fill that job position. so a lot of companies are taking

a look at their hiring policies, there pay equity. this is huge in asia. so, when they look at how much money women are making versus men on a percentage level, these are opportunities that have -- to have companies engage in different initiatives to increase pay. ultimately that then help so we are in a pandemic. that helps when we look at how do we increase the market when there is opportunities to boost the market for people buying goods. >> a lot of your research now focuses on class, and i guess that aspect is implicit bias, but how does it present itself when it comes to senior roles in leadership, when it comes to the ability to network, not just get

a seat at the table, but to be in the room and know that those conversations are happening. quakes since one of the biggest problems. succession. how do we choose people who are going to be tasked for leadership opportunities, and those leadership opportunities come through mentorship opportunities, they come through education and what type of education you have. do you know how to dress, do you know where the power lies in that particular room. an understanding office politics. all these things are things that we talked about when it comes to leadership. it tells us that the brain will quickly tell a story about someone based on their past experiences. institution, if you have certain experience, you are more likely to see sane and safe and choose the person that reminds you of someone to yourself and reminds

you of someone you are used to being associated with. so now we are doing this and we are looking at the hiring process. does acting educations and institutions so there's a more fair and equitable hiring process. we are seeing this on a global scale as well. quakes how do you change your hr process if you want to meaningfully change the balance of diversity and representation in your employment environment? quakes the first thing we ask our organizations to do is take a look at their policies, number one. if you want to reverse engineer process and have more people of different background in the workplace, we have to create different processes and lower barriers. and after that, we have to look at what are some of the opportunities that lie within the interviewing process in terms of how we mitigate our own

biases around gender, around sexual orientation. again, we talked about class. and so the easiest thing to do is just, as you are recruiting, make sure you have a recurrent -- a hiring test to look at the resumes and deduct names from the resumes, look at your policies. are your policies equitable? how soares's -- where do source or potential employees from? is a geographically one specific area from one specific school? some of these things are things that we help companies look at, and honestly the biggest thing we do is organizational assessment. so we look at the qualitative and quantitative aspects of the hiring process of recruitment of how organizations pay. is another issue. what are some of the things that we do as it pertains to helping

a company to become more inclusive? haidi: really great to have you with us. at ascension worldwide, we are just getting the daily covid numbers for shanghai. there are 45 covid cases reported for july 14. and that's on track given that we had the fewest new covid cases and just about a week. and in fact, we will be looking to see, and we do know that all those cases were found within quarantined areas with no community transmission detective -- detected. perhaps the financial hub could be still avoiding these restrictions as the outbreak looks to be coming under control, they have concerns of that to another lockdown. sk hynix may cut its 2020 three spending by about a quarter in response to slowing electronics demand, we have more on that just ahead, this is bloomberg. ♪

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quakes the world's second-largest memory chipmaker is said to be considering cutting its 2023 spending by about a quarter in response to slower electronics demand than anticipated, bloomberg joins us now, so, is this a specific theme for sk hynix, or is it more in the three why? >> good morning, although the

plan hasn't been fixed yet, it is seen as an inevitable move as the industry is grappling with struggling demand, while the korean chipmakers consideration to cut by a quarter tonight's ear, comes at a time when global chipmakers are facing demand, especially from end-user side such as smart phones and pcs, tsmc also said yesterday in an earnings call that it could change spending on expansion by not just 9% this year from earlier predictions, and they are already mentioned in earnings call that it would reduce a level of its supply growth next year and cut spending on new plans. the world's largest memory chipmaker is also expected to trim the second half of this year according to market reports.

>> what kind of implications to the industry could we see? quakes right now, anything from memory chipmakers, basically two things. firstly, it means demand may continue to fall throughout the next three quarters. and secondly, the chipmakers are putting top priority on projects and profitability by avoiding the industry blow. unlike in the past when chipmakers suffered from price collectives due to fears of competition of the market share, their market strategy has changed to have discipline supply and market stable. so the market expects these chipmakers preemptive supply with the industry having fluctuations compared to the worst down cycle they experienced in 2018. haidi: let's get you a quick check of the latest business flash headlines. online spending in the u.s. grote a .5% to $12 billion

during amazon's today prime sale, according to adobe, it boost traffic on the competing sides that held their own sales. walmart.com and target.com, amazon sold more than 300 million items there more than any previous prime day. the u.s. justice department is likely to reject the concessions by alphabet that would clear the way for an antitrust lawsuit over googles governments over the online advertising. they made one officer in the justice department to address its concerns. the u.s. and china stocks tumbled over the report that alibaba faces a require he over a data theft case. authorities in shanghai summoned executives from alibaba's cloud division. the report says cybersecurity resources -- researchers concluded the database on alibaba's cloud platform. >> we will be watching chinese fans at the open and the mainland market, because he saw

the csi 300 financial sector being the worst performer in the previous sector, that surprising given that we have buyers refusing to play mortgages for those delayed construction projects. and of course we have been talking about the challenges for developers. the property mike -- property market chaos is over translating to credit market risk, but now this is something huge for chinese banks that had already struggled with liquidity issues, with a slump for the covid-19 pandemic, and now this challenge faced by mortgage loans, which reviewed as a cornerstone as banking assets in recent years. >> really watching out for that weakness in the housing market, really showing up in the most stable businesses for banks, of course we are talking about mortgages, we have seen that hit the property developer names that are seen as being contained when it comes to any kind of risks. the most safest developers, the biggest developers like china,

and taking a look at what credit suisse said in their note. it's an unprecedented challenge faced by mortgage loans as the cornerstone of banking assets in recent years due to high yields and low risk spirit is the first time we -- is not the first time we talk about nonperformance loans as a systemic risk and china, but that never materialized a significant risk, intentionally until now. >> we will continue to watch what's happening with the economy in china as well as we get those second-quarter gdp numbers, a little bit backwards looking, but it will give us a sense of where we are at when it comes to the economic impact from the shanghai lockdown. and of course we are headed towards the market opens in sydney, seoul and tokyo. this is bloomberg. ♪

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shery: this is daybreak asia, counting down to asia's major market open as we watch the reaction from fed officials really bringing some relief. investors thinking we might see very aggressive rate hikes. of course, this morning will be all about china a -- china eco-data whether it's a second-quarter gdp number. but also, activity numbers. >> very key, but also what's going on when it comes to the chinese mortgage shift. we have regulated gatherers talking to the big banks looking at the cornerstone -- the cornerstone of the business which is under threat, given that we continue to have these chinese mortgage holders refusing to make payments. >> what will that mean for banks in this as we head towards the open in japan and south korea. take a look at how the nikkei is coming online, we are talking about gains of 6/10 of 1%. this is after we had already japanese stocks gaining ground for two consecutive sessions

this week. perhaps it's not surprising consider we have exporters getting a lift from a very weak japanese yen. talking about fresh 24 year lows at that 139 year level. 140 in sight. this is the hottest macro short at the moment when it comes to the currency space. we are also watching jgb's, we have a very strong 20 year debt ceiling the previous session that we are watching where that's going, and the 10 year yield. that to 95 continues to be under that 3% level, given of course those recession fears in the curve deepening as well. take a look at how the kospi is coming online. korea had a big week without rate hike earlier this week. and of course we continue to get these calls from officials and south korea. the minister being the latest saying, we will be watching financial markets, especially when it comes to currency trading. take a look at that level, 13-18 weakness against the u.s.

dollar, perhaps because we have a strong u.s. dollar, it also because of the capital outflows, risk off move. although, when it comes to the equity space, we are seeing some upside. haidi: take a look at what's going on when it comes to the australian session. not a lot of upside in the first few minutes, but it is staggered and starts trading. we are seeing every sector opening in the red, particularly when it comes to materials already up by one point 7%. watching rio tinto in particular when that comes online, world's biggest iron ore producer, really boosting iron ore shipments, warning of the headwinds in the challenges and china. we are also watching the aussie dollar, starting to pick up more momentum. we had that boost from super low and high employment numbers that made it throughout the course of the session as we continue to get that strengthen the u.s. dollar. equities trading lower by have a percent at this point. we will also be watching for the

reaction across australian assets when we get that big data dump out of china later on today. let's get you a look at the treasury's in particular, given that we have really been watching -- whatever your persuasion may be, and the potential for that 100 basis point jumbo move, that threat of fed hikes really scaring away a lot of these auction bidders as we see bond investors continuing to bet that the recession trade that we see across bond markets is just getting started. it has been a very volatility fueled session across the bond market when it comes to that jump in consumer prices in june. just kind of reinforcing an almost certainty that the fed will continue to tighten aggressively. shery: of course we continue to watch the geopolitical environment as well, with the

economy overlaid at the g20 right now. we are forgetting that the finance minister in central bank governor meeting in bali in indonesia. officials will discuss, some of them which we already missed it we already mentioned threats and more sovereign default, and trying to engineer a soft landing for economies while we continue to see covid-19 recoveries. and this is at a time when there is a huge issue in everybody's mind, which is, russia's invasion of ukraine. let's bring in bloomberg's haslinda almond, whose covering the events from bali. what are we expecting? haslinda: when it comes to russia, it is the fault line, it is in the way of progress that could be made at this meeting, crucial. talk about the issues of surging inflation, food prices, energy prices, and don't forget, debt prices. we have sri lanka already default it.

we have pakistan on its way, we have the likes of egypt, tunisia at risk of doing the same. so, please central bank governors, finance ministers have a lot on their plate. but, they are also focused on russia. strong word coming from janet yellen, the u.s. treasury secretary saying, russia has no place at this meeting because the actions of a government are the actions of a government that does not follow international rule. so from janet yellen, what janet yellen is also pushing for as this meeting is a cap on the price of russian oil, she is pushing the resistance in the likes of china and india, both countries have been buying russian oil at discounted prices. but even then, she says there is a case for pushing it through because of the sanctions being laid on by the likes of u.s., u.k. as well as europe. the are kicking off the meeting at 8:00 a.m. here in bali

against a backdrop of darkening clouds over the global economy. lots of issues to be dabbled with. but in question, really, is it will we get a draft communique that saw highlights that could be cooperation in areas like fuel, food, which is crucial, sending 1 -- since one million people are living below the poverty line. and in the drop communicate there is talks of a creditors committee being formed to help zombie a with the restructuring -- zambia with the restructuring. as an african nation -- african nation that has been waiting for the restructuring of its debt, but china has been in the way up until now. that could be some progress. still, big question whether or not we will see that communique. if you recall -- if you recall last week at the foreign meeting of the g20 there was no

communique at the end of that meeting. we are seeing those disagreements until now. as complicated as it is here in bali. shery: bloomberg's haslinda almond with live coverage of all of the meetings and plenty of big confrontations coming up. the ceo of indonesia's investment authority joining us live, along with the oec ecb secretary-general, we will also be speaking with bank indonesia governor and indonesian finance minister later today. our next guest says the macro picture looks complex as major economies are overheating. let's bring in the head of asian equities. great to have you back. so how much visibility are you hoping to get from this earnings season, and what will really top your list of concerns and things you are watching at this point. >> the second quarter at this

point in time is nominal expectations. i think people understand that there has been some difficulties in the second quarter, particularly the lockdown we saw in shanghai. now it's really about focus in terms of where we go in the second half and into next year. if it is accomplished and we give visibility and's show some stability in the margin, i think that will be a relief for the markets in asia at this point in time. shery: how problematic of what's happening in the chinese sector be this time around? we see the prices come and go, headlines coming go. and this time around we are hearing from average citizens that they don't want to make those mortgage payments. will this become an issue that could lead to contagion? >> potentially. i think the financial state price is something that has been happening for some time now. we have seen landfills dropped

to levels that we just have not seen since records began. inventory sales by the developers are also dropping off quite sharply, and this impacts finances. the new change that we see right now is that a lot of common citizens are picking up mortgages and presales and they are now topping the mortgage estimates and for reports, and this is significant because compared to the exposure that the banks have to the developer, the exposure developers have to the mortgage are much bigger, having said that, i wanted take a pause to say that this back book, which is the average loan book that the chinese banks have are actually quite robust, so this would probably be loans that were made in the last couple of years before the presales or projects that are now it not completed and are now stalling, but certainly this is

something that's warranting a lot of attention, we have overseas seen reports that financial regulators administered housing have met with some of the banks to discuss how to tackle this issue. so taking a very high level of tension to this, and i think they are paying the right attention to this because this is something that could potentially spiral. >> in a year where economic and political stability is key, beijing is really struggling with this complex macroeconomic picture right now, how do you assess the risk, particularly given that the ongoing covid zero strategy and that economic stability and growth is in conflict with each other? >> under macro basis, we are definitely seeing the policymakers be accommodative. we have seen it for financing increasing significantly, and we also see it being prepared, we

are now talking about 1.5 trillion that would be targeted first spending with local government financing bonds being brought forward from next year to this year. so these are the policies that will be supported and accommodative for the economy and the second half going into next year. the second half is important because it makes a focus on trying to achieve 5.5% on this year. secondly, inflation environment in china also sets it apart relative to the other major economies in the world, so they could continue to stimulate without much fears of inflation competitive of the economies right now. we also see that the demand for the chinese continue to be robust, you can see those numbers are quite good, but the import numbers have fallen quite a bit. the final point is obviously that the stimulus and the

supporting measures are also completing the dynamics zero covid that you have seen in the cities with fears of things being on secondary lockdown, and the now more normalized policy of the testing that's conflicting with trying to stimulate growth. because if you are testing every 48 hours or every week, this obviously will impact signals and daily lives, the willingness to consume and consumer confidence. greg's always great to have you with us, head of asian equities, let's get you to su keenan who has the first word headlines. su: the fed inspector general said that trading by chair jerome powell in the former vice chair do not break any laws or rules. the watchdog is examining trades made by a financial advisor to a powell family trust during a blackout time, but found no wrongdoing. investigators say they failed to

report trades in 2019 and 2020. and it's in the dallas and boston fed bank ongoing. it's a political crisis that would unsettle financial markets. it related until elections occur next year. they chaos was triggered after his main partner, the five-star movement criticize the government's economic policies and boycotted a confidence vote. to sri lanka now, where the foreign minister has handed his recognition to the parliament speaker. roger took the official step after arriving in singapore on thursday, having fled months of antigovernment protest, the developments have left a power vacuum in sri lanka, protesters are still occupying government residences as they continue to push for new leadership. japanese prime minister has

asked for as many as in nine nuclear reactors to be online this winter to deal with an expected power crunch. reactors were shot following the fukushima nuclear disaster in 2011, 10 of the 33 have been restarted, although some are off-line for maintenance. operators are required to go through a rigorous regulatory process. global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. i'm su keenan, this is bloomberg. >> let's take a look at the stocks we are watching in the early part of the session, in particular watching some of the big miners, given all of the concerns over chinese economic growth headwinds, the data will give us indication as to how in particular the infrastructure investment and construction is really faring. rio tinto really extending those losses now after we saw iron ore crashing below $100 on the

chinese property jitters despite boosting iron ore shipments in the latest economic outlook that it gave, it did seem like really prolonged week this risk there from china. sk hynix is another one we are watching. heidi, when it comes to the big heavyweight we are watching up by 2.5%, considering cutting spending by a quarter in 2023 in response to lower electronic demand in light of uncertainty in it comes to demand we might see for electronics out of the potential for a recession. also watching electric power up by 1.2%. >> china second-quarter gdp likely contracted due to its covid lockdowns, and that could mean heightened expectations for fiscal stimulus analysis ahead with debt. plus, wall street ceos are shrugging off her session fears

despite news being hit hard last quarter amid a slowing economy. details ahead. this is bloomberg. ♪

shery: take a look at trading across asia, a mixed ticker -- a mixed picture. talking about consumer discretionary really leading those gains. up almost 4% at the moment. this as we have the japanese yen pretty weak, 24 year low against the u.s. dollar. close to 140, it's actually passed 139 at the moment. of course rate differentials, that continues to be the story as we continue to get more aggressive tightening coming from the fed. that's a speculation at the moment. take a look at the kospi down half a percent as we are seeing weakness on the korean won.

1321 is your level right now. remember when we had a little bit of a boost, given that be ok rate hike we saw earlier this week is not being sustained. we are hearing from moody bank saying that 1350 could be the next level. we are seeing downside pressure for the asx 200 and kiwi stocks as well. i am talking about potentially more tightening coming from the fed. two of them are hawkish officials as the fed has endorsed 75 basis point rate hikes. our global economics and policy editor kathleen hays is here. despite endorsing 75 basis points, who saw markets being a little bit more confident that it might not be as much tightening is 100 basis points. kathleen: that was the big story yesterday. when the atlanta fed president rafael bostic was asked about cpi and did he still indoors 75 and if he doesn't he was asked about a hundred and he said everything would be in play and it was off to the races.

so it was no surprise that the federal reserve board governor, when he was getting prepared to march at an event in idaho, actually included this in his speech. 75 basis points out it would do would have to be 100. listen to what he says. >> based on the labor market, i just don't see -- it's inconceivable to have a recession within unemployment rate of 3.6%. kathleen: he also went on to say that he right now is supporting 75 basis point hike. clearly he is watching the question of recession. he also said that, as for 100 basis points, it's not where he is now, he's definitely at a loss for the numbers in the next two weeks like retail sales, housing and inflation, jim bullard was speaking to nikkei news, and he clearly enjoys the five basis point rate hike, it has virtues, he notes that it's already the rate hike, and this

is for his goal, which is probably 3.5%, whatever he calls neutral by the end of the year, as far as watching the numbers, don't forget to look at producer prices by the end of the year. a really big number is more than 11% year-over-year, but you take out energy, half of the drive on the headline, you take that out about an 8.2 percent rise, so some economists are saying maybe some early signs, a little bit of softening might be beginning, especially of energy prices don't go back to the moon. >> less than two hours away from the big data dump in the headline gdp numbers. more interesting would be the activity numbers. kathleen: i wouldn't dismiss the gdp because they are forecast for negative gdp and that would be a very big deal. that would be the second time we see negative gdp for a quarter and china. what are we looking for in terms of the forecast? the consensus for bloomberg, 1.2 percent of the second quarter, way less than 4.8% in the first

quarter because of shanghai lockdowns to a very big degree. but the range from minus one to up 3.8, bloomberg economic sees a drop of 2.2%. but whatever number you are looking at it's pretty far from that 5% growth target. if it comes in around the forecast, the gdp year to date would be 2.9%. let's look at the data dump because there is the great. retail sales are seen rising zero point 3%. that isn't much at 6.7% that we saw in the month of may, but people get out and shot. china fixed investment will stay strong. jobless rates might follow. in the pboc, let me conclude there is. the lending facility, no one expects them to do anything, we expect them to keep it at 2.85%. shery: our global economic and policy editor, kathleen hays. the biggest investment banks on wall street, a parade of

investors are advising against fighting the u.s. dollar strength. let's get more from u.s. seeing effects and rates reporter. we have to bloomberg dollar index on a record high, but investors keep saying that we could see more gains. >> absolutely, there's literally no stopping the dollar. right now hedge funds have the message for investors globally. go along with it for now. as you mentioned, bloomberg dollar spot index had peaked yesterday. the bx why index has been at a record for a couple of months now. so investors are saying, don't do that again until the clarity on the federal reserve will stop raising interest rates until fears of recession subside. so the dollar has this rush to haven as well as high yield. until that dynamic shifts, there is no dropping the dollar. haidi: ruth, which currencies are likely the biggest losers going forward as we continue to

see this relentless dollars surge? ruth: there's always a flipside to the trade and what are you supposed to do. experts say, sell everything, really. the yen from 140, a level that some speculate we could see heavier intervention with the topics design. the euro could fall 80%. and goldman currencies are coming even more under pressure. so, plenty around and it's all off the dollar and sell everything else. shery: korean won at their weakest since 2009, we continue to watch the euro, ruth carson, we have plenty more to come. this is bloomberg. ♪

shery: a quick check of the latest headlines, attracting

takeover interest as tours start coming back to the asian travel have. sources say as mgm resorts recently approach the firms controlling shareholder, the billionaire family on the possible deal. well it didn't lead to an agreement, other suitors have been studying the firm. chinese stocks tumbled on the report that alibaba faces an inquiry over data theft case. authorities in shanghai's summit executives from alibaba's cloud division. the report said cyber researchers continued that the database was on the cloud platform. tsmc has raises 2022 forecasts while warning it would trim spending on expansion by as much as 9% from initial projection. the move would have uncertainty about the demand over a potential recession. this ceo warned that it's too

early to go into specifics about spending plans are and the outlets for semiconductor and demand. in 2020, perhaps not surprising what we are hearing. also that sk hynix is considering cutting 2023 capital expenditure as well. this is a pretty mixed picture when it comes to european futures. we saw stocks fall in the regular session, but that came after we saw the disappointing earnings results here in the u.s. from things like jp morgan and morgan stanley, also, investors were pretty spooked whether producer price numbers that came in worsen fears in the u.s. you're seeing more positive recession it in the 80's and -- in

haidi: morgan stanley's revenue from investment banking limited

last quarter as capital markets seized up. that underlines a gloomy outlook for the economy and blows a path forward for more. for more, sally bakewell leads our coverage of u.s. finance. for all of the pretty severe warnings we have had from jamie dimon before, we actually had a pretty optimistic set of comments. sally: the trade. we came away with this picture of the consumer in pretty good health. job market is strong, consumers spending on their credit cards. the ceo of morgan stanley said in a recession will not be deep and dramatic. and jp morgan's ceo says we are going into the recession stronger than we were doing the financial crisis. all that said, the backdrop they painted with one of part of a lot of uncertainty. jamie dimon's hurricane analogy has not changed the forecast, the picture is complicated.

and they are still -- there is still a cocktail of political factors, the war in ukraine, macro factors such as soaring inflation and the acidity of rate hikes, all in the backdrop event the consumers right now are dealing with a couple of things per week. shery: this as we hear that ubs and citi are some of the banks that were hit by pullbacks from the asian areas. wells fargo, goldman sachs next week as well. sally: these two banks set the tone in a way, they showed us how wall street fared in these tumultuous three months with shifting prospects in the economy and volatility. so far it is not that great. j.p. morgan missed estimates.

trading specifically missed estimates despite all the volatility. morgan stanley and jp morgan also posted investment banking income down. j.p. morgan had to set aside money to cover potentially soaring loans to make sure it has enough of a capital buffer were a potential downturn. so there are quite a few details in the earnings that were notable, that signified things to be concerned about out there in the economic horizon right now. and citi tomorrow, citi has less exposure to investment banking and more exposure to fixed income, so potentially it will fare better. wells fargo has the mortgage business. mortgage rates are soaring, so

we could expect hit -- to see it hit a little bit. the expectations are murky. shery: sally bakewell, who leads our coverage of u.s. finance. let's talk about chinese banks, who are facing pressure alongside property developers, this as homeowners begin to boycott payments on projects. let's bring in our coanchor, david english to break this down. we have been talking about the pressure for the property sector and property developments. why is this different especially for banks? david: to make it simple, the latest trigger here was, as you point out, some homebuyers have essentially refused to pay mortgage payments in many cities because of the delays we are seeing, and the cash crunch we are seeing in some property developers, and that is dealing to a lot of ways, delays. here is where you are seeing the highest percentage of these

projects that are seeing delivery issues. as a homebuyer, you look at this angle, i don't want to pay this just yet, will it be completed? what does that mean for the banking sector? a credit suisse analyst, talking about mortgages specifically, which, traditionally speaking is high-yield and low risk. a distant part when it comes to revenues for the big banks. are we talking about a situation which is a crisis for the banks? maybe not just yet. on face value, it might indicate a hate to profits for now. at least it was urgent enough, based on our sources, that the banks were convened yesterday by authorities to talk about this. we had a whole list of banks coming out, issuing statements yesterday to the exchange and basically saying, no problem.

the risks are controllable, as far as that specific risk is concerned. now as far as markets, here is where the rubber meets the road. equity investors had seven straight days of declines on the csa 300 banks index, enough to take you back to levels of 2020. a separate but similar, in terms of shared constituents, the csa 300 financials index and every index been gone for three straight days. as far as bonds are concerned, we talk about evergrande and the riskier developers, but when you see the likes of van gogh, for example, a big one, those bonds are trading below $.80 on the dollar. it gives you a sense that bond investors are paying attention to the safest part of the credit spectrum. we will see what happens when earnings get underway. haidi: hugely important story on a day like today in particular, with all the china data

expected. bloomberg will anchor david english there. standard chartered ceo bill winters says the banks is seeing a range of stresses when it comes to the property sector. but he did say the worst would be over, after government intervention at the state and local levels. >> there is real stress in the property sector. such financial stress that it has led to operating stress, property sales are down essentially, and those financing property companies are feeling the financial pressure, not just from markets, but also their own customers. that said, it looks like we may have bottomed out and we are beginning to see some improvement in property sales and home prices. we are beginning to hear some of the initiatives that the government has been taking, both at the local and national level, too property market afloat, not let it collapse in a calamitous way. so whether pressures are very

acute, thankfully, we don't have a very large exposure ourselves. it is enough to feel, but not enough to hurt us. still, we are paying very close attention. we are seeing it, and it is not yet resolved. haslinda: we have to talk about the zero covid policy. have you seen perhaps a flow of talent from china and hong kong, in particular, to singapore? >> there has clearly been some movement. the people more inclined to move have been experts, both in china -- ex-pats, both in china and hong kong. last year or so, we actually have more ex-pats come into hong kong than leave. not to say it wasn't tough for colleagues in hong kong, but things are loosening up, and the government is very determined to make it easier to get in and out of the country. the quarantine regulations have been dropped significantly. my colleagues are moving in and

out regularly now. that is the beginning of normalization. we look forward to the rest of that over the course of this year. china is a little bit behind, we know china is battling with a dynamic zero covid policy as we speak, but this is transitory. the business opportunities in china are so great, they will not be able to keep the ex-pats, or local talent away, because the opportunities to do some really good things in china are as great as ever. haidi: standard chartered ceo bill winters there, speaking with bloomberg's haslinda amin. they will release second-quarter gdp data along with a slew of other june activity data this morning. . our next guest expects growth of 1.5% for china. she says weaker than expected data will heighten expectations. for more fiscal stimulus. . joining us now is betty wang, senior china economist at

anz. there is an inherent conflict here between the covid zero strategy and the wanting for economic stability and growth this year. how does that play out? very busy indeed. betty: their policy is to strike the balance between preventing people's life and also to secure growth and momentum. if our understanding is correct, the government is still keen to get some growth in the second half of this year, above 5% growth target. in that case, q2 gdp is very important in deciding the growth trajectory required in the second half for china's about 5% growth. according to our current 1.5% on the year-on-year basis forecast, that could mean that in the second half, china needs to achieve 6.5% growth.

6.5% is quite high, but considering the low base last year, on a two-year average, it would mean 5% in general the second half of this year. haidi: at the same time, we are now having the newest episode of the housing or property market stress, with the refusal to make payments by chinese mortgage holders. how systemically worrying is this, given regulators are taking notes, and this is really a cornerstone for the banks? betty: indeed. if you look at the quick reaction from authorities, in terms of responding to this incident, they have indicated the importance of the latest developments of the homebuyers stopping their debt repayments. to us, this can be a very stupid event move because it signals the downside risk in the property sector has shifted from supply factors, to demand

factors. this could be quite a big problem if it develops further. from banks' perspective, if you look at china big banks particularly, their mortgage exposures can be as high as 30% of their total bank loans. at the same time, we have an estimate in terms of how big this impact in terms of home sales will be. so if you consider all the home sales by those developers devoted in the last five months, the total share can be as high as 4% of the mortgage outstanding in china's whole banking sectors. shery: there is a selloff expanding for developers. to some of those that we thought were pretty safe, we saw the divergence in the onshore and offshore -- market, especially with the onshore being pretty resilient despite the crisis we have seen in the offshore market in the past two years. that really -- could that

divergence shrink to the downside? betty: yes. i think that is why we think that the incident actually warrants top reaction from policymakers. this could affect banks, state-owned developers, as well as local bankers and civilians. helping to push the whole process and also helping to make sure that the project will be delivered as this could be the top priority required by homebuyers. so to us, we think that the those homebuyers stopping payment is not to default, they just want their projects to be delivered. so that is why if the government can take some actions to make sure that every single party will ensure that the products are delivered, this could help to calm down the market. shery: we also heard that

chinese regulators have been asking for companies to really exert greater caution when it comes to investing overseas. they finally getting worried about those capital outflows, given where the fed is moving right now? betty: the risk has always been there, especially with the fed hiking rates aggressively. it is where we think that from a policymakers perspective, this is not a good chance for china to cut interest rates. the monetary policy rate, but rather to provide ample liquidity in the market, that could be something the pboc is considering. and if you look at what the new head of the pboc's monetary policy group said during the conference this week, he actually acknowledged that the current market liquidity is a bit above ample level. this suggests the pboc should be patient enough to accommodate market liquidity as long as job

security is not secured right now. shery: betty wang, always good to have you with us, senior china economist at anz. our watching another launch by spacex. its services mission to the international space station. this is going to happen in less than one minute. we are expecting to see the launch of the nasa spacex crs 25 cargo. >> to supply the international space station with cool science, new advanced instruments to more effectively study or not juan climate -- study our planet's climate.

haidi: after the lift-off, which has just gone according to plan, the falcon 9 beheading downrange, northeast of the space coast. nine engines are generating 1.7 million pounds of thrust. this comes as a relief, as after a month or so of delays for nasa and spacex, because we had some issues with prior lunches on june 10, with engineering issues on the propulsion system. it has been a rare hiccup with the spacex dragon capsule program. we have seen a number of missions ferrying both crew and cargo from international space station, with very few issues. so this particular dragon capsule has already done this trip before, and we are seeing what looks like the start of

another deployment that is successful. we are continuing to watch as we see the launch team will be doing some of the loading, as well as the other processes that will continue to watch. the dragon cargo ship is scheduled, given that we have assumed the timing will be correct. it will ultimately dark at the space station's module on saturday. shery: this is another launch into dragon mission, the overall 30th of the year. we continue to see 2022 for spacex being a year of milestones and records for the company. we have seen the 25th commercial resupply services mission of the international space station, and of course this is a very celebratory 25th crs launch.

this coming after a lot of issues before, but finally going ahead with this launch as the falcon 9 rocket is sending the company's dragon spacecraft headed to the iss, with supplies and experiments from the launch complex at the kennedy space center. haidi: one of those experiments, you wouldn't think it is interesting to study dust, but it is. they will be installing a climate instrument to be mounted outside the space station. the investigation was developed by nasa and will be attached to just outside the space station. the intent is to measure the mineral content of the world's desert regions. that will give us information and data about what is impacting climate and where the conditions and some of the phenomenon we have seen worldwide, it will help scientists learn about how dust lifted into the atmosphere from these deserts.

it will be impacting ecosystems as well as human health. so there is a lot going on as nasa says it is backed with a lot of science this trip. the duration is 33 days and it will come as a huge relief and victory for a lot of the scientists that have been working on this, given we had the initial delay, the need to replace some of the equipment. shery: one of the experiments i think will look into human immune cells, and how they are affected microgravity. but you said it, this is a huge achievement, a milestone for space x. the 25th commercial resupply service mission. and this contract was awarded by nasa. spacex has been delivering cargo, food, supplies. those experiments are very interesting. now to the international space station, it has been doing it for the past 10 years. the first one actually taking place in 2012. they have had some good results

and some not so good results, of course you mentioned earlier that we had had problems with launch earlier, it kept getting postponed. really this is happening. the 25th crs mission to the iss is happening. and we have less than one minute to see the latest launch right now, happening at the moment. as we continue to see very interesting new milestones being set by spacex. haidi: very, very cool. and some of the other experiments, and attempt to produce an alternative to concrete? [laughter] that is really a great material that is used for shielding spacecraft from radiation, but obviously it is very heavy and expensive to send space. they are studying the behavior of sutured worlds in microgravity, generated from real skin.

they're also looking at the immune sale project, how aging fields into the previous research we have seen from the iss, and they will be receiving the tissue from the last experiment on earth. one of the major ones is really how the climate experiments they will be doing will give scientists a better understanding of global climate change, the ability of dust to absorb and reflect sunlight, the cooling and the heating of the planet, and how that plays into all of these big questions about climate change. so really super interesting experiments and research will be taking place across this 33-day deployment. so, we will continue to watch the trajectory that the cargo dragon resupply mission is taking now. shery: and as we are watching these life pictures, once the

separation takes place, the falcon 9 rocket, which has been used in the crs 22 crew 3 and crew 4 missions, they will land on a drone ship called "a shortfall of gravitas," station in the atlantic ocean. [laughter] we have one more minute to landing. very interesting experiments, as you said, and observations that will happen from here, including mapping earth dust, the earth's surface mineral dust mission. we will deploy nasa imaging technology to measure the mineral composition of dust in earth's regions, immune system aging, and we continue to see the landing happening right now. this is the falcon 9 rocket which has been used in the crew 3 and crew 4 missions. they will be landing on the drone ship stationed in the atlantic ocean. haidi: let's take a look at the landing that is happening at the moment. so that is scheduled to

automatically dock at the landing module. take a look. [applause] >> sixth lending for this falcon 9, 130th landing over all. beautiful sight to see. coming up next is -- haidi: once the docking happens, there will be a very busy time, opening hatching and supplies, looking at other equipment that has stored inside the dragon capsule. 5800 pounds of supplies and payloads on this one. lots more to come here in bloomberg. ♪

shery: a quick check of the latest business flash alliance. the uniqlo owner expects profit to hit a record as a weaker yen outweighs a china slump with a japanese retailer raised its two year forecast from an earlier estimate of 200 ¥70 billion, according to a company statement. if achieved, profits would beat the previous record set in 2019. online spending in the u.s. rose

8.5% to nearly $12 billion, during amazon's two-day prime day sale. according to adobe, the event helped boost traffic on competing sites that had their own sales, such as walmart and target. amazon sold more than 300 million items, more than any previous prime day. pyd says its preliminary net income for the first half would be between 2.8 billion one to 3.6 billion. the estimate is an increase of as much as 207% over the previous corresponding period. the company said the growth is helped by strong sales of new energy vehicles. we have the china market opens next. this is bloomberg. is a clone -- ♪