haidi: we are counting down to

asia's major market open. shery: risk appetite to be tested in asia as investors brace for a likely 75 basis point fed hike. the clock is ticking for the world's most indebted developer. china evergrande is days away from unveiling its restructuring plan after a leadership shakeup. and the world health organization glares monkeypox a global emergency, trying to spur ordination in testing and treatment. haidi: let's get you a look at how are shaping up when it comes to the sydney open. we are looking like a pretty tepid oakland -- tepid outlook. looking at potentially not much change at the start of cash trading. it is on the precipice of a big earnings week for australia. we have seen the resource miner energy market be a standout across the region and it comes to earnings revisions. they have stalled since early june, so we look more uncertain when it comes to the growth

outlook. we will see how that is inflected in some earnings this week. from u.s. stocks we saw the first decline for the s&p in four sessions, but the weakness potentially continuing in the greenback is lending more support to asian equities. take a look at the new zealand market, off session highs, pretty much flat at the moment. also watching the aussie dollar, under $.70 u.s. and watching dollar-yen given the big week ahead for the fed. shery: big fed week, not to mention tech earnings week in the u.s. u.s. futures are under a little bit of pressure after the s&p 500 lost ground in the friday session. we had weak eco-data leading to that narrative of recession again. the 10 year yield headed towards the 2.7% level. we had a weekly loss for oil prices, a little bit of a rebound in the asian session but still below $100 a barrel. it is that weak eco-date we saw across the board.

you mentioned what the greenback is doing but also the treasury space we are watching closely. we had flash pmi numbers showing u.s. business activity contracted for the first time in more than two years. we are also talking about europe, japan, australia with weaker pmi's this month. haidi: it really is just about fed expectations and whether or not we can see that soft landing still being maneuvered. if you look at bond market measures they are suggesting the outlook for inflation has been tempered. this suggests they believe the fed will be successful in getting price pressure under control. let's get more from andreea papuc. the suggestion is we are going to see more pain be inflected to the u.s. economy by the fed as they try and get inflation under control. a number of growth drivers are already slowing. what are you seeing when you look across the bond market? andreea: that's right, that is what the bond market is reflecting.

it is reflecting these expectations of a recession, of a slowdown. we have seen expectations for inflation actually come down to levels not seen since february when russia invaded ukraine. so the signals from the bond market, that inflation perhaps is starting to be tempered, it is turning to be weighing on the equity market. we are seeing u.s. futures lower and asia it will probably come under pressure. look, it is early days. bear in mind we have had a pullback in commodity prices as well, which is positive for inflation. but the narrative at the moment for investors seems to be this focus on the economy, on a recession. we are getting u.s. gdp numbers

as well later this week. they are unlikely to be negative but they are probably going to be pretty moderate. shery: if you get the national bureau of economic research coming out and calling a recession, we might see a market impact. already we have seen the dollar seesawing. we had strength because of the weaker than expanded -- expected eco-numbers but that did not hold. what is going on? andreea: that is right. the dollar has had an amazing run. the dollar gauge is near a record high. but we have seen a pullback. and again, it is a focus not on interest rates perhaps as much, although they are going to keep going up, but this focus on economic activity, on slowing economic activity. we had a raft of week numbers on the u.s.. earnings are coming under pressure.

you are also seeing other central banks being quite aggressive with the rate hikes. so we have seen that pullback in the dollar after that massive, massive run. so it will be interesting to see where we go from here, given that investors are really focusing on the potential of a recession on slowing economic activity. shery: andreea papuc with the latest on the market. we are also on alert for restructuring plans in china for embattled developer evergrande. let's get more with annabelle droulers. they said they were going to come up with a plan by the end of the month. not many days left. annabelle: that's right. this is really the big deadline we are watching because evergrande is one of the biggest developers in china but it is also the most indebted and we have been tracking them since 2020. this week we are about whether

evergrande can provide a preliminary plan to restructure. in march they said they were on track to deliver. they said they were speaking with as many as 90 offshore creditors to ensure that would happen, pleading with them to not take any or aggressive action. so we will see whether we get that plan. that is one big issue for the company but the other one of course is this fallout we are seeing from the mortgage boycott and china's cabinet is urging developers around the country to rush and speed up the delivery of their products. when you look at the list of which developer has the most projects to deliver, evergrande is at the top. that also does compared to this drop we are seeing in contracts itself, so a lot less sales coming through. the other issue is property loan growth, which has gone down to a two decade low. haidi: we are seeing some changes in evergrande's leadership as well. annabelle: in a company filing

we understood that the ceo and the cfo as well as another executive, they are all being forced to resign. there was an investigation into as much as $2 billion that was being used as security, really, by other third parties to obtain bank loans. what has happened is some of that has not been paid back to the company. that is the preliminary results. we understand a full report will come through later. but who is taking over? the executive director, not a lot known about him, but the big focus for him moving forward is whether they can stave off any major default because that would obviously have major implications not only for the domestic economy but also global financial markets. haidi: annabelle droulers with the latest. let's get you to vonnie quinn in new york now with the first word headlines. vonnie: china says all of its leaders have received locally made covid-19 shots, a rare disclosure for beijing which

previously refused to comment. vaccine mandates have also emerged as a surprise redline for the ruling communist party. close to 90% of china's total population is fully vaccinated, by the age group above 80 has lagged. travelers to hong kong will soon need to fallout in electronic health declaration before boarding flights. starting thursday, passengers will need to provide standard details to get a qr code before boarding. visitors will not be able to fill out paperwork after landing. the chief of the world health organization has declared monkeypox an international emergency. the w.h.o. director general overruled a divided expert panel to issue the group's highest alert. the move paves the way for more international cooperation to stop the virus. the u.s. is weighing whether to issue a similar declaration, as it sees now more than 2000 cases nationwide. >> i do think monkeypox can be

contained, absolutely. the way we contain monkeypox is a straightforward strategy on this, which is make testing widely available. we have done that, and it is now more frequent and common. we are going to be releasing hundreds of thousands of more vaccines in the days and weeks. there is a very substantial ramping up of response that is happening right now. vonnie: the australian prime minister says chinese sanctions on australian goods should be lifted immediately. he said lifting sanctions is in the interest of both countries. bloomberg reported earlier this month that chinese officials are proposing to end an almost two year ban. curbs have also been imposed on australian wine, lobster, and beef. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: still ahead, a conversation with the ceo. he will join us and talk about

what is happening to the overseas market. shery: next, markets are scaling down bets of a full percent hike ahead of this week's fed decision we will discuss the outlook for the u.s. economy and how to position as well. this is bloomberg. ♪

shery: president biden's top economic advisor says the white house use every twos available to tame inflation. brian deese told us more about the administration's game plan to ease price pressures. brian: we do know that inflation is a global phenomenon right now. our approach is to approach this using the unique sources of economic strength that the u.s. has. it is fair to say the u.s. is better positioned than virtually any other country to go at this challenge because of the strength of our labor market recovery, because household balance sheets remain historically strong. so our strategy is to go everywhere and leave use -- and use every lever to bring things down. gas prices and energy, we're seeing helpful moderation on

that front. gas prices down about $.60 from their peak. but we need to do more and take actions like the action in front of congress right now, to pass an historic bill to make sure we can increase the supply of semi-conductors, security supply chain. we know how critical that is for the economy and our national security, but also to easing price pressures. >> we have been following the chips act, i guess that is what they are calling it these days. looks like that may get done. that raises a question about the time horizon for your game plan at the white house with the economy. if that kicks in, i don't think it will affect chips right away. it takes a while to make them. what do you have in short, medium, and long-term? how do you look at that question as you plan out how you want to have economic policy work in this country? brian: we think about easing those price pressures, we do

think about it in a short, medium, and long-term, and there are actions we can take across that spectrum. gas prices is a place where we are seeing have real-time actions have real-time implications. that $.60 is happening in the economy right now. we also want to put in place and lay the foundation for investments that will start to pay dividends and reduced price pressures across time as well. semi conductors are a great example. once that passes it will take six, 12, 18 months for investments to start. we should have taken this step a year ago and we should take now. the fact it will take some time as further reason we should take the steps now. haidi: national economic council director david deese there. the fed rate decision expected to dominate global markets. the central bank expected to raise rates by 75 basis points for a second straight meeting. that comes a day before the

second-quarter gdp data is expected to be released, expected to show a second straight contraction. also getting growth figures out of south korea this week. in australia, we could see inflation hitting a 21 year high. in china, industrial profits year to date are likely to show stalled growth in the first half due to covid lockdowns. shery: our next guest says the future of the u.s. economy is uncertain and prefers all -- robert, good to have you with us. you are talking about these recession resilience stocks. where do you find them? robert: we are in the middle of the storm right now. you can see both globally and in the united states right now, it is a lot of uncertainty. especially the week ahead that we are going to see. it is going to be a hurricane of data. obviously the dividend paying quality companies we like,

obviously health care is doing quite well relative to everything else. the s&p year-to-date is down, even the dow. we saw a reprieve last week but we think even in the energy trade, even though energy is off i think energy is a good story year-to-date. you have sectors like health care and energy, those are good all weather roaches to diversify your portfolio when things like technology, major earnings announcements, when they may not be participating in a rally. shery: tell us a little about big tech. there has been optimism about growth making a comeback. where are you in this narrative? robert: we saw this last week with earnings announcement. they reported and indicated the advertising dollars is down 40%. they talked about advertising revenue is down.

looking ahead at big tech earnings, we are going to be focusing in on is how the ad revenue is translating into earnings. if you look at the crypto market , $3 trillion to start the year and less then $1 trillion now. those ad dollars are potentially not there in the big tech names. that is one component to what we are going to be paying attention to. also how the consumer is holding up. the federal reserve saying the consumer is strong, washington things the consumer is strong. i don't know about you, but it is all about kitchen table economics. inflation is everywhere. it is in everything from our groceries to our gas. whether they say it is a technical recession by later this week in the gdp report or not, i think the consumer is feeling it, and we are seeing the yield curve indicate that it is recession ahead one way or the other. haidi: if you take a look at the

correlation between the strength in the u.s. dollar, we had the best month for u.s. stocks in about a month. and is this chart will show, the dollar index showing the worst week in seven weeks. how much does this potential outperformance continue to depend on the pullback of the greenback? robert: the dollar actually had a relief for everyone. it was strong euro today. the dollar pullback actually helps a lot of global markets, specifically the fx trade. but i don't think we have seen the end of the dollar run, simply because you cannot obviously the federal reserve supporting stronger interest rates, stronger dollar. if the dollar is stronger, it is going to be a wrecking ball to the name -- to the multinationals in the u.s. and the currency trading we are seeing around the world. we all know the dollar has sort of slowed and pulled back recently this last week. i think we could see stronger dollar potentially which could be wreaking havoc moving forward

for not only here in the u.s., but around the world. and that is something to be concerned about. if you are looking outside the u.s., paying attention to italy and germany in terms of -- the ecb just announced a new tool for the central banks to help out -- help out. haidi: what do you like a given we are seeing good outlook for earning revision in asia? robert: we're concerned about asia right now. simply because of the evergrande story that is playing out. we are seeing potentially, even though asia has some opportunities there, i would say right now if you look globally, risk-off trade is the trend everywhere. as of right now, we're going to step back from asia and

international markets and hold tight and see how this plays out. this week is a huge week. economic data from the u.s. and globally, and earnings. we could see lower lows later this week in the s&p 500 as a result of that. if it is not priced to perfection. i think we have not seen lows in the market yet. shery: robert schein, good to have your insights. you can get around up of all of the stories you need to know to get your day going in today's edition of daybreak. terminal subscribers go to dayb . also available on mobile on the bloomberg anywhere app. you can customize the settings so you only get the news on the industries and assets you care about. this is bloomberg. ♪

haidi: a quick check of the latest headlines. all bloom is set to become volkswagen ceo according to sources. this, as clashes with unions and missteps on key projects spur the shakeup. we are told vw's board is betting that bloom will be more collaborative and stable. credit suisse is reportedly weighing a fresh round of job cuts and other measures to reduce expenses. board discussions about a large cost savings package i reached an advanced stage. last month they warned that clients were pulling back, particularly in asia. india's number two software services exporter has raised its annual sales forecast on -- they say revenue will grow. it alleviates concerns of a

slowing global economy will stifle technology spending. india's second biggest larger beat estimates on robust loan demand and widening interest markets. net income rose 49% to $864 million compared to a year ago. it's been growing rapidly as it ramps up lending in response to higher demand for consumer credit. shery: take a look at how futures are trading. we continue to see downside pressure after we saw u.s. stocks losing ground friday. we had disappointing results from social media companies including snap and twitter, not to mention weak eco-data adding to recession fears. this week we have huge tech earnings week. we are talking apple, microsoft, google, and the fact that snap's weak results have become the barometer for ad spending, not boding well for the tech giants. take a look at the bond space,

because recession concerns, i talked about eco-data being weak, that was pmi numbers with the u.s. business activity contracting for the first time in more than two years. led to the 10 year yield pulling back below the 3% level, which we were already at. now we are falling towards the 2.7% level. so wseen the bond space across asia sovereign debt markets follow u.s. treasuries. we are talking about the 10 year yield right now and australian also falling for a second session. the kiwi tenure-year-old also falling for a third consecutive session, all on the fact we continue to fear recession. i mentioned pmi numbers here in the u.s. the euro area has not done any better. we are talking about the worst reading since he pandemic lockdowns of 2021. figures from japan and australia also deteriorating this month. they remained in expansionary territory, but barely. take a look at the fx space, because the dollar index holding

steady, but this of course after we saw weakness the past few days. weak u.s. data did not help. disappointing tech data did not help. it helped boost the dollar but that was not carried on throughout the session. so we continue to see a little bit of a mixed picture when it comes to the currency space, trying to digest what the dollar is doing. haidi: some trepidation in terms of trading across new zealand and australia, as well as looking ahead to the start of trading in japan. nikkei futures up by about .25%. we are seeing new zealand stocks pretty much erase all only morning's gains. asia-pacific

>> we think the dollar can still rise further. >> the dollar has been coming down and i believe the fact that

the ecb is potentially going to be increasing their interest rates and shoring up euro. >> in some ways are expectations call for a leveling off of the dollar relative to other global currencies. >> i don't think the excitations a med -- that the policy rate will rise by more than 75 basis points. if that is the case i think dollar strength could fade. >> broader dollar might be reaching its peak here. >> there is room to rally further but there are thousand -- >> if the fed does not back down at the september meeting there is the possibility that the euro-dollar could fall back towards record lows. annabelle: some of our guests responding about our question about the fate of the dollar. where we go from here also depends on what happens with the fomc. that was the other focus of the imam service.

-- mliv service. more than 1300 respondents came in with this. this had been one of the things that started to build in markets following the massive cpi print. we saw that come off a little with the weaker economic readings coming through. now the vast majority of respondents say that is no longer on the cards. still, when you take those factors together we are seeing one in three people saying it could still be possible. let's move on to the size, or where we go from here. because we have really been watching the moves we have seen in treasury markets. really rapid repricing over the past few months following the moves of where we see the fed going from here. let's look at what comes ahead because we have seen whether the fed will begin to cut rates as we have seen growth projections start to slow as well. we could see the next fed hike

as soonest 2023. shery: the next fed rate cut. given that there are recession fears. but right now we are talking about inflation, then talking recession, then potential fed rate cuts. former u.s. treasury secretary larry summers now says washington is forgoing a key tool when it comes to helping the fed quell inflation. he also proposed that lawmakers start looking at raising taxes. larry: fiscal policy makes a big difference. this is not the time for stimulative fiscal policies like continuing moratoriums on student debt relief. this is not the time for anything that is going to be a big new spending program. in fact, it is the time for short-term deficit reduction. that is why i am so disappointed

that the idea seems to be gaining currency that you should not raise taxes when there is inflation. i actually think that just of right thing to do is to raise taxes right now to take some of the demand out of the economy. we can raise substantial revenue by cutting corporate tax loop holes. if we don't do it, we are likely to lose what i think was a huge accomplishment for the biden administration, the global tax cooperation agreement that secretary yellen concluded. we can generate significant revenues simply by enforcing the tax law and taking some of the money out of high income tax evaders who then go and spend the money and that will contribute to reduced inflation as well.

so i sure wish we could get past this basically ludicrous economic idea that tax increases are inflationary. it is just not right. >> we have a lot of earnings out , particularly snap and twitter. they did not do so well this week. is that telling us anything broader? larry: i think what you are seeing in tech is kind of what you always see, which is just when government is getting aroused, that something was a source of monopoly power and earning excess profits, that tends to be when it peaks in the marketplace. that is how it was with ibm many years ago. that is how it was with microsoft. and i think we are seeing some elements of that with advertisement supported tech businesses right now. haidi: larry summers there.

let's get you to vonnie quinn with the first word headlines. vonnie: liz truss and rishi sunak have both promised to toughen border controls as they battled to become the next leader of the conservative party and uk prime minister. foreign secretary liz truss says she will extend the uk's rwanda asylum party and increase the border force by 20%. the committee investigating the january 6 u.s. capitol riot says it will get to the bottom of missing secret service texts from the days around the attack. they are seeking messages from 24 secret service employees. there are reports that donald trump had to be blocked by agents to traveling to the capital. the republican vice chair of the panel lose training -- liz cheney says she is deeply troubled by the missing messages.

this is according to the wall street journal. they say the size of the holdings is unknown and it is unclear whether any sales were made. brin filed for divorce in january from his wife, nicole shanahan. the australian prime minister says his government introduced be tougher ever bio security measures to prevent an outbreak of food and mouth disease. traces of the disease were found on imported animal products. indonesia is also dealing with an outbreak. the virus could devastate australia's cattle industry. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: the world health organization has issued its highest alert for monkeypox on orders of its director general. it paves the way for increased global cooperation. let's bring in paul griffin,

associate professor at the university of queensland. great to have you with us. first of all, what level of risk do you assign to monkeypox at the moment? paul: i think this declaration is a really good move. it shows people we do need to be on the lookout for this virus and we have to have a response that is appropriate even the numbers we are seeing. in many countries the actual risk is relatively low but we are seeing numbers climb significantly so that does warrant a response. haidi: there has been a lot of criticism, particularly in the u.s., in regards to how difficult it has been to get a vaccine and under testing. is there a risk of this so far of being characterized as something that only occurs when sex have sex with men? paul: we have to be very careful with this. anyone who comes in contact with infected fluid from the blisters we see or other infected fluids like blood can be infected.

it is not only a disease of africa, nor is it solely a disease of men who have sex with men. anyone has the potential to get infected, and our response is to make sure everyone knows that this is out there and the steps they can take to reduce the prospect of getting infected. shery: what do you make of the who's ruling? the panel was divided on how they would classify the disease. paul: look, i think it again tells us the significance we are entering now. there was not consensus this time, but those that knew a lot about the potential risks or those who are advocating for the move. hopefully this will be what we need for all countries to be on the lookout for this virus and to cooperate in terms of our response, vaccination supply, etc., but also public health messaging.

we also need a lot more research into why we are seeing so many cases. shery: how much of a risk is there of public fatigue? we have already seen that with covid-19, now we have another public health emergency. paul: i think fatigue is playing into it in a huge way. a lot of people are sick about talking about vaccines and viral infections, and unfortunately people conflating both of the viruses. we need a basic level of awareness, but we also need people to understand this is not covid-19, it is not something that will be the next pandemic of the same magnitude. that is why we need a response that takes into account the specifics, and hopefully that declaration will help facilitate some of that information. haidi: you talk about fatigue and certainly that is a big element in what we are seeing in the public health response. do you agree with the approach being taken? it seems like government policy is not necessarily reflecting

what public health experts are recommending. paul: i agree broadly with our response at the moment. what is clear is we need to get the basics right. we need to get people boosted, we need to make sure we find cases by testing. but we need to do more in terms of simple things like masks, looking at ventilation, etc. while i think a mandate is not necessarily the solution, there is a lot more we can do to facilitate those simple behaviors. shery: not just behavior but what about treatment and vaccinations? we have heard about potentially the vaccine that targets omicron, that variant. could we see something more advanced, more variants, and how soon could we see that? paul: it is great there has been so much work still happening on so-called second-generation vaccines. i think we will have an omicron-specific booster that will combine the original vaccine by the end of the year. and then i would expect next

year we are likely to see a number of different vaccine options. intranasal vaccines that might be better at blocking transmission, vaccines that combine double strains or variants that will give broader cross protection. our tools are improving all the time but at the moment we need to focus on the basics. while we are getting better vaccines in the not-too-distant future, they are not available right now. so we need as many people boosted as possible. haidi: a lot of the world is either going through or setting off for the third covid winter. is this just the new normal? from an epidemiology perspective, when do you expect this veil -- mutates into something so weak that we don't have to worry about it, given that there are a lot of concerns about long covid. paul: we should not assume this will fade away into something that is mild. while that might be the

endpoint, it is likely well into the distant future. it is not as bleak as it might sound. we have a significant wave right now that needs response, but we are going to get better tools moving forward, both the better vaccines that are not far away, better existing antivirals. our tools are going to improve so we have a better chance of keeping a level of control we need. what we don't want is people to assume it will go away and to stop doing simple things, particularly right now where we need as many strategies as possible to reduce the burden of infection. shery: one day at a time, one winter at a time. paul griffin, thank you so much for your insights. his take on what is happening with the covid pandemic and the monkeypox disease as well. despite a shrinking overall market, japan's asahi has tripled sales. an interview with their ceo, next. this is bloomberg. ♪

haidi: vladimir putin may not be allowed to participate in the planned estate funeral for shinzo abe should he decide he wants to attend. putin's entry to japan has been effectively banned following

russia's invasion of ukraine. the japan your logical agency has raised the alert level for the volcano following its eruption. officials are urging people living within three kilometers to evacuate. several earnings are due out today including canon, and in source. japanese markets will be opening at the top of the next hour. dollar-yen pretty stable. a big week of potential moves. the weakest week for the greenback in about seven and that is lending support to the impetus for upside inequities trading in the asia-pacific we are seeing a little bit of downside lower. we will be watching what happens when it comes to jgb and treasury markets given the focus on the fed this week. shery: in new york, asahi shuzo will open a brewery later this year as it looks to further

expand these markets. the ceo kazuhiro sakurai told bloomberg that overseas sales will eventually make up around 90% of overall revenue. kazuhiro: our overseas sales have overtaken japanese sales over the past year. under covid restrictions, restaurants in japan had to close and we still have massive declines in sales domestically. on the other hands, sales increased overseas as people sought out japanese food and sake locally as travel to japan was banned. >> you have been able to expand. tell me how you plan to sustain the growth. any new ideas going forward? kazuhiro: we would like to add value to our products and make them even better. we should never stop pursuing leveling up our production techniques. we are building a brewery in new york. we would like to further expand

our overseas market and make sake well received in western cuisine. >> this is a family business. you are fourth generation. your father relied on data and did not go the route of traditional sake brewing. what prompted that move? kazuhiro: my father first started using data hoping to make even better sake. we've been relying on human sensors when making socket but we came to a point where we thought we should also use data to improve the taste. ever since, that has become our style. >> let's talk about the expansion. you are opening your first sake brewery outside japan. why new york? kazuhiro: we are often asked, why new york? people say l.a. is much better because they have california rice and there are more japanese restaurants. but new york is a very important market for us as it is the first

place in the u.s. where we started. it is a powerful, diverse culture where west and east come together. the city has the power to push japanese culture into the world. that is why we think new york is the best place to build our brewery. >> the sake you are brewing in new york is a new brand. what is different about it? kazuhiro: it comes from a japanese proverb. blue dye comes from the indigo plant and it is lure than indigo, meaning, the child outshines the parent. naturally, the water is different in the u.s. we will bring some rice. mainly we will use rights cultivated in the u.s. we will aim to make a new delicious sake in a completely new environment. it can be a rival to -- and a battle can even improve both of our products. >> china, like the u.s., is a

key market for you. tell us about the growing demand of sake in china. kazuhiro: we have seen very steady growth in the chinese market the population is huge and their economy is growing. it is the same as the u.s. it is the kind of market that obviously is good for us. we consider powerful market with any young people like china very important. >> your overseas sales make up about half right now. what percentage are you targeting? kazuhiro: i think overseas sales will make up about 90% of our overall sales eventually. but i don't think that is going to happen right away. in about 10 years time the overseas market will expand to about 2.5 times or even three times bigger than the japanese markets. >> so when you are extending overseas with more sales, what countries are you targeting next? kazuhiro: we don't intend to

expand our reach beyond what we have at the moment. rather, we want to increase sales in existing markets such as the u.s., china, singapore, hong kong, canada, and australian. we want to increase the number of people who understand our brand. that is how we would like to create our markets overseas. i think sales in the u.s. still have the potential to grow tenfold. >> looking ahead, what kind of company do you want asahi shuzo to become? kazuhiro: we want to achieve is to make our brand even more global. uniqlo and toyota are well-known, but only a few luxury japanese brands are well accepted globally and we want to be the leader in this area. we should not copy wine or other western culture. we should represent japanese brands with japanese spirit. >> what do you think the pan

needs most? kazuhiro: what japan needs most is courage. japan is an island country, so people tend to become double among themselves. but i think we need courage to go out of the country. when you go out, you need to change. and that is when you need courage. you will probably make mistakes but you should have the courage to change. haidi: asahi shuzo president kazuhiro sakurai there. tune in every week to hear from the leading names across japanese business. shery: we have the latest covid numbers from shanghai, adding 13 high-end been risk areas subject to lockdown. this is after reporting 18 local covid cases for july 24. of course we know there has been more than 800 cases nationally for saturday in china also coming out and saying it's

leaders received locally made covid-19 shots. the latest from shanghai is 13 high mid risk areas have been added to lockdown. plenty more to come. this is bloomberg. ♪

shery: we are tracking the fallout of the global supply chain crunch. supply chain stability for big u.s. names including apple,

alpha bought -- we'll be in focus when they report earnings this week. the u.s. and japan are reportedly planning to agree on strengthening their collaboration and procuring components for cutting edge semiconductors when administers meet in washington on friday. russia has attacked odessa seaport with cruise missiles h ours after signing a deal. the pact was hailed as a vital step towards alleviating a global food crisis. haidi: taking a look at copper oil, corn and wheat, could portend more downside risks across most of the combined of these -- wheat has driven up the cost of bread and pushing more premium

options to an unheard-of $10 a loaf. bloomberg terminal users can read more about the stories in our newsletter. let's take a look at some stocks we are watching when trade opens in korea and japan. watching some pharmaceutical players including hong kong. after we had the world health organization declaring the monkeypox outbreak a global health emergency. plus east japan railway is reportedly planning to reduce costs by around $500 million. the market opens in sydney, seoul and tokyo next. this is bloomberg. ♪

millions have made the switch from the big three to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g network, with the carrier rated #1 in customer satisfaction. that's a whole lot of happy campers out there. and it's never too late to join them. get unlimited data with 5g included for just $30 a line per month when you get 4 lines. switch to xfinity mobile today.

shery: we are counting down to

a-shares the market opens. we have a big week here in the u.s. with the federal reserve potentially hiking for another 75 basis points. this of course after another huge rate hike last month at a time when we are all 72nd week of second-quarter earnings with big names like apple, microsoft, a full but. -- alphabet. it will make for an interesting week. haidi: we are seeing bond markets pair back some inflation expectations. that raises the question of if we will see this trading pattern post the fed as well. let's get you to the market open. annabelle: seems like we are setting up for moves we will see pre-and post decision. a lot of anticipation for it. a few seconds away from the opens. also watching the open of cash trading because we got the results of the mliv pulse. the vast majority seeing it allow 3.7%.

keeping an eye on where we see the yen this morning. a little bit of weakness coming into the currency but that could be limited as we see strategists saying it could hold around 135 57 over the coming weeks. we are seeing declines at the start that had been of course reflected in futures trading. we are seeing more signs of economic slowdown. the start of trade had been one of the biggest beneficiaries saw last week with optimism around the peak dollar. in terms of the direction of stocks we are continuing to see the outperformance. concerns around growth hitting tech stocks. holding around you hundred level but analysts saying it could hit 1350. in australian we can talk about what we are expecting this week.

the resilience of the resources sector is something that has been keeping the asx 200 bully and. we have seen -- we are flat. keeping an eye on the aussie dollar, fractionally weaker against the greenback. haidi: our next guest says dollar strength has run its course. joining us is cio at -- bold to call an end to dollar strength. take a look at this chart. the best week for global stocks in about a month. the weakest week fro the dollar in about seven weeks. does that mean you expect these recession fears to be subdued, and that will not add to more demand for the dollar? >> the recession risk is

definitely out. the fed is probably tightening too quickly and too fast. we also expect the 75 basis point hike for the year. there is also a risk that the u.s. is doing too much. the u.s. dollar is an expensive currency and now with growth probably jeopardized, the fed might have to slow down in the fourth quarter while others have to catch up. there is a lot in the price already. don't think the u.s. dollar will go to a very quick weakening but it is petering out at the moment. over the next six to 12 months you will see weakness for the u.s. dollar versus other currencies like the swiss franc. haidi: how are you positioning going into the fed meeting and are you inspecting the trading pattern we have seen to remain that same or change after the next 75 basis point move? adrian: we are living in a

dilemma because the fed probably does a policy mistake on hiking so much. i think they should have stuck with the view that inflation is transitory. if you look at the future market and breakevens, it tells you inflation will come down rapidly over the next 12 months. if you look at breakeven for one year, for example. so the fed is really jeopardizing growth at the moment, and that probably will mean there is more volatility for equity market. we are currently neutral and we take a more defensive stance with an equities, but we see value in the bond market. we do think yields are probably fairly priced and probably over the next six to 12 months they will come down. so we start to build more position within the fixed income area. shery: we are actually seeing traders now paring back excitations not only a fed rate hikes, but as the show shows -- this chart shows, they see the

fed cutting rates next year. how do you position in this uncertainty, given you are more defensive? but are there some recession-resilient calls if we do fall into an economic slowdown? adrian: well, i think we're in a technical organ it -- recession most likely. the big caution is if we end up in a big slump or just a slowdown, maybe has a net zero eventually in growth. probably we still have a small probability that the slowdown will be there, but it will be more technical recession. that doesn't have to be too bad for equities because it also means inflation will come off and that is biggest concern year to date for some equity markets. so we see opportunities more on the value side, where probably stocks can live with higher real interest rates which will probably get out of the result of that. therefore, we are more concerned

growth stocks because we see expectations are still extremely high for this earnings season. if you don't deliver, we have seen over the last couple days, the stocks will get punished. that's what you have to look out for. shery: does that call also hold for investing in asia as well? do you go for places that have been cheaper, have taken a bigger hit from the covid pandemic, but now may look like attractive investments? adrian: absolutely. we have a bit of a bottle strategy in asia. we actually do like china. we like the new technology segments within china, because we really think it is cheap. china will probably have to do more easing towards a market very domestically focused, particularly the e-commerce sector. now we are probably getting lower interest rates, inflation is extremely high, so real interest rates this time is not a real challenge currently for the chinese technology sector. yes, there are regulatory headwinds, but they are

uncertainty. there is the uncertainty of covid, which is marginally improving, so there is opportunity to buy china. then combined with more cyclical markets like indonesia and thailand, which are both quite well to the commodity cycle. shery: does the property sector concern you and china? we are hearing about evergrande coming up with a restructuring plan. will that work out well? adrian: property always concerns me in china because that is so big and important for the economy. it is 30% of gdp growth, 25% of the bank's balance sheet. yes, it's definitely a key concern, but a lot has been reflected. it is probably forcing the policymaker to come out with more visible measurements and support the market. i think that could bode well. but yes, if you are a bond investor, hold your breath. i think some of the spreads will widen and there is still the risk that we will see more defaults.

shery: adrian zuercher, good to have you back. a little bit of a mixed picture across asia right now. annabelle: just taking a look at some pharma stocks, particularly in japan. we did of course had the w.h.o. sounding the alarm over monkeypox, saying it is a public health emergency of international concern. that does pave the way for a stepped up coordination of testing and treatment and surveillance around the world. that has been something missing so far, so we could see shares of antivirals, vaccines rising off of that. so far little bit weaker, but tracking the broader picture at the start of japan. haidi: you are also tracking some crypto names in korea? annabelle: yes. this is the crypto trading platform founded by, who could be a crypto robinhood.

essentially that company is in a vast ta -- that exchange was founded in 2014 and currently processing around half $1 billion of payments per day. its officers in south korea were raided last week. it follows what we have also been seeing, committing as much as $1 billion so far to shore up, or provide some sort of base for the crypto sector in general, which has seen a massive slump across the board. haidi: let's get you the first word headlines not with vonnie quinn. vonnie: china says all of its leaders have received locally made covid-19 shots, a rare disclosure for beijing which has previously refused to comment on president xi jinping's vaccination status. vaccine mandates have also emerged as a surprise redline for the ruling communist party. close to 90% of china's total population is fully vaccinated, but the age group above 80 has

lagged. hong kong reportedly plans to cut hotel quarantine for arrivals with the introduction of a two color health code system. the city's government is considering moving to five days of how to a quarantine followed by two days of a yellow health code that bars entry to certain venues. the australian prime minister says china's sanctions on australian goods should be lifted immediately. he said lifting sanctions is in the interest of both countries. bloomberg reported earlier this month that chinese officials are proposing to end an almost two year ban on australian coal. curbs have also been imposed on australian wine, lobster, and beef. the chief of the world health organization has declared monkeypox an international emergency. the w.h.o. director general overruled a divided expert panel to issue the group's highest alert. the move paves the way for more international cooperation to stop the virus.

the u.s. is weighing whether to issue a similar declaration, as it sees more than 2000 cases nationwide. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: coming up, we get a head start on this week's key data including china's industrial output and inflation numbers for singapore, australia, and sri lanka. next, the clock is ticking for the world's most indebted developer after evergrande's liquidity woes spark a debt crisis. this is bloomberg. ♪

shery: take a look at how markets are trading across asia. the nikkei under pressure with materials and health care leading declines. more defensive utilities and real estate sectors gaining ground. this of course as the japanese yen saw strength in the previous session, right now under pressure at the 136 level.

we are now seeing the first losses for japanese equities in eight sessions. the kospi up .4% as the korean won is also recovering from the previous session. asx two .1%. kiwi stocks, aussie stocks have not done much the last two sessions. right now we are seeing a clear lack of direction when it comes to those markets. the world's most indebted developer evergrande is due to unveiled a preliminary restructuring plan by the end of the month, as a debt crisis in china's property sector spreads to more builders and may threaten its banks. let's get more from stephen engle. let's start with evergrande because we were expecting some sort of plan by the end of the month. not many days left now. stephen: there are so many questions surrounding evergrande obviously and then they have this word room shakeup with the ceo among others being forced to step down. but really,, and of course the

global economy those participating in the global economy are looking at this as whether this will be, if it does indeed come down with china's largest ever debt restructuring. will it be the roadmap for other troubled developers to follow, and how much of a haircut will creditors be forced to take? the big question here, for example, overseas creditors on the dollar offshore bonds, how much will they be able to recover? the information loop has been fairly opaque. it leaves a lot of questions to be answered about what will be in, how much of a haircut will be in this debt restructuring plan if it does indeed come out by this weekend. it is a lot to do. haidi: they have done a lot in terms of changes across leadership, right? stephen: absolutely. we have the ceo being forced to

step down and the ceo being forced to resign amid a probe into how to billion dollars of deposits were used as security for third parties to obtain bank loans, which some borrowers failed to pay back. then we have this new ceo, executive director, he has been quoted by the 21st century business harold as saying they have reached a business consensus on debt restructuring principles with multiple major global creditors. until we get the details and some sort of messaging on what type of restructuring we are going to get, there will be a lot of uncertainty here. shery: given the fact we are seeing this growing mortgage boycott crisis as well, how does this change in ordinary chinese

person's perspective on how you accumulate wealth in this country? stephen: ah, that's the age-old question. who gets left holding the bag last with the speculative property market which has only seen up. unlike other parts of the world, much of china's property purchases are done what is called off plan. it is a speculative bet. they buy off plan, which means the properties have not been built or completed yet. once they give their initial deposit they have to start paying their mortgage off immediately. so if these construction projects are not finished and they are not going to be completed in any foreseeable future and they are still having to pay the mortgage, you are already started to see many people hold off on buying a new property. and of course now they are starting to boycott paying their mortgages, saying they have been dealt an unfair and by

evergrande and all the other developers who have altered all these projects across china. haidi: stephen engle with the latest as we look ahead to the restructuring plan. let's look at how futures are panning out for the week and it comes to europe. it was a big waste -- it was a big week last week. some fundamental challenges remain but big earnings week when it comes to the earnings release. we are expecting some early earnings to give impetus to the upside for european stocks. we saw the earnings week last week generally positive with european stocks posting their biggest weekly gain since late may. a bit more of a tepid start to this week. futures off by about .5%. same kind of picture when it comes to german doubts futures. ftse down .5% following the first rate hike from the european central bank in 11 years and bigger than expected as well.

of course we will get more on the u.k. leadership race. regardless of who the winner is, the pan slide may prove beyond their powers to address. let's bring in ruth carson. this is kind of what we saw with the entire leadership crisis. it is almost a sideshow when it comes to trading because the fundamentals are so bad. ruth: absolutely. it is not just about leadership, it is a cocktail of risks entirely for any trader. let's take a look at what are some of the factors. inflation at the highest level since the 1980's. the bank of england not being as aggressive as the fed in raising interest rates. and still the hangover from brexit and supply chains show markets don't like any of this, regardless of who gets into power. the pound is one of the worst-performing currencies this year. let's see what people are

talking about when it comes to pound trading. standard bank saying it could hit 115 the coming months. the bank of montreal sees it rising to .091 from .085 now. so it's all looking fairly negative for the pound. shery: what about the dollar? the almighty dollar seems to be faltering now. ruth: it seems like the dollar finally may be at a turning point. the bloomberg dollar index was down 1% last week, the first time it has fallen so much since late may. it fell after reports showed u.s. business activity contracted. that is helping to ease fears the fed will be hiking until recession. former treasury official said -- as a result, we have seen strengthening of the currencies, the yen rallying, the euro is about 1.02 right now . but some strategists say

practice some caution. don't write off the dollar strength the. shery: ruth carson there. you can get a roundup of all the stories you need to know to get your day going in today's edition of daybreak. go to dayb on your terminals, also available on mobile. you can customize settings so you only get the news on the industries and assets that you care about. next, bitcoin's recent rally has had investors starting to wonder whether the crypto crisis has found the bottom. this is bloomberg. ♪

shery: turn into cryptocurrencies and increasing signs bitcoin has stabilized above the $22,000 level.

it may be premature to declare the crypto winter over, but there is buzz that a bottom maybe forming. as i speak we are seeing bitcoin fall again, but we're still above $22,000. su: it is a tough call to make whether bitcoin has hit bottom. given the boom bust cycle that bitcoin really has become, many beleaguered investors, let alone analysts, are reluctant to give the all clear sign. we are seeing some red. bitcoin got back to $23,000 for the first time friday for pulling back, and now it is fluctuating. but still, well above $22,000. it has been 10 days now it has held above the 20 doubt -- above the $20,000 level. dropping into the bloomberg, you can see there has been a lot of bottom fishing here.

bitcoin, for that reason, is up about 15% in the past month. ether up by a greater percentage. one analyst says it is especially difficult to call the bottom at this time, because the most recent rally involved a lot of young people who had never invested before. and crypto is really a liquidity asset. as long as the fed is tightening, it will be hard to see a sustained rally. bitcoin investors may be just as edgy as your traditional investors going into the week as the fed makes its latest decision, a fed meeting that is likely to deliver another 75 basis point hike. haidi: there is a fed of course, but what is likely to drive the big move? su: there is still a bit of lost confidence in the defi and cryp to space. there's that. but most important, analystss say, is the turnaround and analysts -- in appetite.

the equity markets show up, bitcoin is likely to shore up. we see much greater linkage. it is important institutional investors are much more interested at this point than they were in prior pullbacks. haidi: su keenan with the latest. let's get you a check of the headlines. the porsche boss is expected to become the vw ceo. this, as clashes with labor unions and missteps including delays spurred the shakeup. we are told the vw board predicts he will be more collaborative and stable as the ocean to ev's. credit suisse is weighing a fresh round of job cuts to reduce expenses. a swiss paper says the board discussions about a large

savings package reached an advanced stage. they warned clients were pulling back, particularly in asia. shery: emissions and salary expectations of chinese workers are diminishing in the wake of covid and attack crackdown. a look at the economic fallout next in our big take. this is bloomberg. ♪ hi, my name's steve. i lost 138 pounds on golo and i kept it off. so with other diets, you just feel like you're muscling your way through it. the reason why i like golo is plain and simple, it was easy. i didn't have to grit my teeth and do a diet. golo's a lifestyle change and you make the change and it stays off. golo's changed my life in so many ways. i sleep better, i eat better.

took my shirt off for the first time in 25 years. it's golo. it's all golo. it's smarter, it's better, it will change your life forever.

this is daybreak: asia. a check on markets, 30 minute tear into the trading session.

let's kick off with good news. there is a lot of bad news across the markets this morning but we are seeing some positivity come into the utility stocks. materials and real estate stocks also looking freshly higher as well but the the biggest ones we are seeing are across most of the index and we are really concerned about recession. that is the major word we are watching today. also, the fears around a global slowdown. we have the fed meeting around the world and in china what happens to the property markets there with a deadline valuing for evergrande to submit the program to restructure. in terms of what we are seeing in the commodities market, we are keeping our eye on brent crude. they are assessing the recession fees versus the tightness that we see here.

those commodities are moving higher. it did slump in the previous session. there was an accord signed. millions of tons of export of wheat were being exported out of the country. broadly, it is pretty much a down day. risk-averse in the asian session. >> watch what happens with commodities. let's turn to vonnie quinn with the first word headlines. >> toughening border control. he says he will tighten the definition of who qualifies for asylum and introduce a cap on numbers. the foreign secretary says he will extend the asylum.

the panel is seeking messages from 24 secret service employees. there are reports former president donald trump had to be locked by agents from traveling with reporters to the capital. the australian prime minister says the government introduced the toughest ever by a security measures to prevent an outbreak of foot and mouth disease. concerns have been growing after traces of the disease were found on imported animal products. indonesia is also dealing with an outbreak. the virus could devastate australia's capital industry. sergey brin ordered his advisors after learning that musk had a brief affair with his wife. this is all according to the wall street journal. the size of the holdings are unknown and it is unclear if any sales were made. he filed from -- for divorce

from his wife. powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. >> they were supposed to blaze a trail to a more innovative and technologically advanced economy. 50 million people were estimated to be jobless. many more are lowering ambition. as we understand, it is the covid hit to the labor market. there is the regulatory crackdown on the private sector but how much of this is also a cultural movement or shift? >> there are short-term factors with this spike in the use of employment. the impact of lockdown has been huge because certain sectors

that are more labor intensive have more effect but there is also long-term structural courses that led the youth unemployment rates to start rallying even before the pandemic and one of them being the fact that there has been a huge expansion in higher education and really it has been an enormous increase in the number of graduates. that is probably phrasing a mismatch in the labor market. >> we have heard the tempting line flat, china doing the bare minimum here. >> this year, there has been even more extreme slogans. it means to give up basically. it is a way for young people to

express their frustrations and talk to each other about how they are lowering their expectations. that is really useful psychological coping mechanism for people but in the long term, people lowering their expectations, it sort of implies quit a negative outlook for china's overall economic growth. that is something the leadership in beijing is not very keen on. >> it is pretty disastrous in the long term structurally. particularly as china is facing the same kinds of demographics challenges we see across some other asian economies. when you look at the situation when it comes to south korea and japan. >> i would not describe china's democracy as a disaster.

we have this expansion of higher education. you kind of have a tsunami of educated young people joining the workforce and in theory they should be a lot more productive than the less educated predecessors but the problem is they are out of work at unprecedented rates at the moment. so it is really imperative to get the private sector hiring again. it looks like people are preferring jobs in the state sector but the state sector is not big enough to provide the jobs needed. >> let's stay with the country economy, beijing do to report profits and is likely to show profit growth and that comes as the property crisis continues to unfold with homeowners withholding mortgage payments on

unfinished homes. let's bring in the asian economist. let's start with the eco-numbers out of china. we will be see the biggest hits from virus restrictions? >> i think the biggest hit on virus restriction will come from domestic demand. thanks to consumer spending, that is where things could be seen the biggest hit. the biggest it will be coming on the fiscal policy side. we have seen policymakers, whether it is in the fiscal or because i fiscal funding booth, it seems the fiscal booth could be something up to 7 trillion rmb. that is three times what we saw last year. >> how are you factoring the potential risks from the property sector? we continue to see some mortgage boycotts and developers trying to make payments.

>> i think of something we -- something we watch out work very closely here. we are closely monitoring for this risk. now we have also seen signs to supply the real estate developers. there will be done were drug when it comes to the housing market side. the housing market is a significant part of the chinese economy. in the very near term, we will watch out for policymakers case-by-case when it comes to deciding whether to provide support. we will not rule out engaging in policy and rescuing the quarterly developers.

this is the risk that could be coming from the recent developments. >> have resilient is the chinese consumer given that we are talking about a huge amount of household wealth taken up by property accumulation. >> that is typically how you build wealth in china. >> right. from what we know, housing assets is about 40% of the household balance sheet. let's just say that i think in terms of what we are seeing, the development is not because of the effect that the homebuyers thought they would be negative on equity or income growth is negative but we need more of a push to get developers to jumpstart on the projects that have been held up so far and hopefully get policymakers in on the election. i think we would expect there to

be support for the chinese economy and for growth going forward. >> another 75 basis points expected from the fed. we are seeing paul back when it comes to that dollar strength now. >> a lot of talks about the fed continue higher. we look for the fed to take the policy to 3.25% by the end of this year. i think overall, the way we are thinking about right now, investors are not concerned about global recession risks, and generally, in that kind of environment, i think economies would be more exposed to any global demand uncertainty. thailand, korea, taiwan. those will be the economies that

will be exposed to any global demand volatility and on the fifth side, this offers a taxation hedge by virtue of being a net exporter. these economies will be better positioned and this will be the philippines and malaysia as well. >> data points in terms of inflation pressures across asia this week. what are you seeing in terms of regional inflation expectations and where we are headed and how fast the central banks should counteract this? >> i think that generally, it is very likely we could see these lines continue to ratchet up. we could see a peak in efficiency levels between 3% and high 7% territory. i think what this means is that in the very near term, upside

risk will be the more dominant concern for central banks. more so than downside risk to growth. we do expect asian central banks to continue to normalize policies or for asia, we are expecting asian central mass to be normalizing. we still tend to see these as policy normalization rather than disruptive rate hikes because generally agencies less overheating challenge to what we see in the u.s.. request good to have you insights. a very heavy week when it comes to eco-data out of asia. we continue to watch the inflationary pressures. a lot to do with the supply chain disruptions. when it comes to those things engaged in the supply chain sectors, truck drivers,

interesting that a lot of the burden has fallen on them to keep the supply chain's going but when it comes to inflation, concerns, central banks say we could fall into this wage hike spiral like the one we saw in the 1970's. the wage gains have not been that great for the sector. there are price surges. no wonder we are seeing more strikes than labor protest. -- more strikes and major -- more strikes and labor protests. >> we are starting to see a bit of an awakening when it comes to unionized -- unionized and industrial action. in terms of specific chokepoints and labor unrest in these key industries having a wider ripple effects, we see no ipos energy

workers. we are also seeing in the u.s. this sort of long declining labor movement started to show signs of being revived. unions are starting to establish more footholds. some of the biggest disputes are happening in the transport industry. so we will continue to watch that when it comes to the impact on inflation and the impact on price and maybe there will be more power given to these workers. the global pandemic hit these companies very hard. there is a lot of criticism pushing that back onto their workers. this is bloomberg ♪

yumi -- >> larry summers says washington is undergoing a key tool in helping the fed follow inflation. summers proposed lawmakers start looking and raising taxes. >> fiscal policy makes a big difference. this is not the time for stimulative fiscal policies like continuing moratoriums on student debt relief. this is not the time for

anything that is going to be a big new spending program. in fact, it is the time for short-term deficit reduction. that is why i am so disappointed that the idea seems to be gaining currency that you should not raise taxes when there is inflation. i actually think that just the right thing to do is to raise taxes. to take some of the demand out of the economy. we can raise substantial revenue by cutting corporate tax loopholes. if we don't do it, we are likely to lose what i think was a huge accomplishment for the biden administration. the global tax cooperation agreement, secretary yellen concluded we can generate significant revenues by enforcing the tax law and taking

some of the money out of high income tax evaders who did not go and spend the money and that will continue to reduced -- contribute to reduced inflation as well. i wish we could get past this ludicrous economic idea that tax increases are inflationary. it is just not right. >> we had a lot of earnings out of snap and also twitter. they did not do so well this week. >> i think what you are seeing intact is what you always see. that is just when government is getting aroused that something is a source of monopoly power and earning excess profits. that tends to be when it peaks in the marketplace. that is how it was with ibm many years ago. that is how it was with

microsoft and i think we are seeing some elements of that with this advertisement supported tech business right now. click there was larry summers speaking with david westin. chinese stocks may have become somewhat of a pariah for global investors but some are turning bullish. this is bloomberg. ♪

>> india's number two software service has re-forecasted its sales forecast. the company says the revenue will grow 14 to 16%. the new revenue projection alleviates concerns that a slowing global economy will stifle technology spending. india's second largest private sector lender beats estimates for the second quarter on robust loan demands and widening interest margins. net income rose 49% to $864 million in the quarter compared with a year ago and they have ramped up lending in response to higher demand for consumer

credit. some money managers betting on chinese stocks taking a july selloff in stride. july has not been a good month for chinese stocks. whether you're talking about maine that stocks or hong kong. there are those that say it is just a blip and they are expecting that policy diversions to start playing out. >> yes. the csi 300 was about 5% to 6% down. some of the biggest money matters in the world are either turning bullish or speaking to their bullish calls on chinese equities. expecting that they will beat the global equities in the second half. also, city wells has issued a bullish call saying that the chinese economy bottomed in may and right now they are on a

recovering path. the main reasons include three reasons as far as i can see. one is the continued liquidity boost from the pboc and the stimulus from the chinese government and the second is a wrapping up of the regulatory probe into dd. and the third one is the hope that more market friendly measures will come out ahead of the national parties congress later this year. >> those are some positive developments but there is always some insurgency when it comes to u.s. listed companies that are delisting because of washington and geopolitical tensions. do we have anything on that front? >> yes. the fda reported a significant adjustment or a plant adjustment for the categorization of chinese companies.

the report says china is looking to set chinese listed companies into three groups. the first group is nondata sensitive companies. that would include the restaurant operators and the retailers and the second will would be data sensitive and the third one would be secretive so that means the group that has secretive data will probably be delisted. i would think that didi would belong to that group. that is the second sort of major step the chinese government has taken in recent months to adjust this issue. >> our asian stocks editing manager, we continue to watch the open in hong kong and the mainland. all of this after the world health organization declared monkeypox of global health emergency. also, she is connected to gaming

in china messy active training. keep your eye on chinese construction stocks as well. >> loves to watch out for. also, warner discussing how their hedge fund managers will get an 18% return. vincent will also join us with his outlook for chinese economies and the ongoing mortgage crisis. this is bloomberg. ♪

psst. girl. you can do better. ok. wow. i'm right here. and you can do better, too. at least with your big name wireless carrier. with xfinity mobile, you can get unlimited for $30 per month on the nation's most reliable 5g network. they can even save you hundreds a year on your wireless bill, over t-mobile, at&t and verizon. wow. i can do better. yes, you can. i can do better, too. break free from the big three and switch to xfinity mobile.

>> good morning and happy monday morning.