haidi: you are watching "bloomberg daybreak: asia." >> we are to be done to get opens. asia stuxnet for a coach at as traders i earnings and shall be economic prospects, futures dipping in japan, studying in australia. tensions are adding to a cloudy outlook with someone condemning china about the biggest missile test is a significant escalation. tesla approves a 3 for 1 stock split. we will get the latest on elon musk's master plan. haidi: let's get you the latest when it comes to south korea's current account numbers, june current account surplus widening to $5.6 billion, a straight rise in a surplus of $3.59 billion. this as we have seen relative

resilience when it comes to south korea's exports, july's exports gigantic -- shy of expectations. let's get you to the markets. >> we are killing tenderly opens for korea, japan, and china. fairly muted trading across the board. the reason is there was a lot for investors to contend with. we get earnings coming through in the u.s., a few disappointments in the previous session. more concern around the tightening from central banks because we did see the biggest height from the bank of england since 1995. the tailwind for investors today will come from alibaba's earnings, we saw the tech giant reporting better-than-expected results for the first quarter. in terms of the fx space, the dollar really consolidating, we have key job numbers coming out later today.

that will give us clues as to the pace of fed rate hiking ahead. the yen trading in a narrow range, but let's take a look at the board, a global picture for stocks as well, because we are looking to eke out another week of gains. at the same time we are hearing from investors, really too early to take risk off the table, and that is of course these fears around central bank hiking, geopolitical threats as well. perhaps there is a sign of complacency in the markets. shery: u.s. futures are not doing much, lacking clear direction at the moment. we lacked clear direction in the numeric session with the s&p 500 going nowhere. nasdaq 100 did outperform today, perhaps not surprising given that we are seeing treasury yields down across the board. we saw 10 year yields breakthrough 2.7%, falling below the two year yield, the concern

about yield curve inversion, a potential recession continues. perhaps that is why we saw crude prices, where we are, we are talking about the lowest level since before russia invaded ukraine. u.s. jobless claims rising slightly. we are very much watching the friday jobs report. take a look at after hours trading. tesla announcing a 3 for 1 stock split. we saw a jump of as much as 4%. elon musk continues to speak, he talked about announcing another location for a factory. lyft outperforming when it comes to earnings. doordash sales beating estimates, but perhaps the

advertise beyond meat missed on the guidance. haidi: it is a very divisive issue. elon musk continues to speak at the shareholder meeting. it is commenting on a wide range of topics, he spoke the twitter respects -- more trade tensions and trades agents. musk has tweeted over the past few days saying he feels we are past peak inflation, that component costs are trending downward at the moment, and we are hearing him continue to speak about some of those costs. supply chain issues, costs and supply chain snags are one of the biggest risks facing the outlook for tesla. also at the moment elon musk has

a lot in the air, it is a big day for spacex as long as south korea's speech aspirations as well. this is a lunar orbiter aboard a falcon nine rocket. the lunch will be the 168th falcon nine launch. we are seeing the preparation for that lunch in cape canaveral. it is a pathfinder or precursor because south korea has a big aspirations in space expiration, including wanting to achieve a robotic landing on the moon. shery: that seems to be the trend among countries in asia. i love the name of this mission, the lunar orbiter. it means moon and moody.

what they wanted to convey is they want to go to the moon and enjoy it fully and then come back. i heard they are going to be sending a music video of bts's dynamite. apparently it was a very popular song a couple of years back. haidi: you do not like bts, you do not like to, you do not like squid game, i do not know what to talk to you about. shery: i think k pop is ok. dramas i cannot. spacex lunches are addictive too. we keep following these and we are talking about this first new mission, it is huge. it is expected to take 4.5 months, the journey to the moon. we are talking about six

payloads developed by korean universities. it is a huge step. haidi: we are starting to get records for spacex and falcon nine. if they managed to do this landing successfully it will be the 60th consecutive landing. the first stage booster will lend in the atlantic ocean and it will be the 134rd boosting lending we have seen. the last few seconds before we get to left off. aboard the orbiter will be a number of scientific instruments, they are looking at imaging shadow craters, look for signs of water, measurements of the components of the lunar surface as well as catching high-resolution images to map out future landing sites. shery mentioned the mission name, the idea of enjoying moon, which is poetic as we continue to count down to the lunar orbiter being watched.

the basic idea of this mission is technological development and demonstration according to project scientists and hoping to get useful data when it comes to the lunar surface as well. they will also be testing a spacecraft platform. just about 45 seconds from lunch now. communications, navigation capabilities as well as validation for interplanetary internet connection. shery: this is also supposed to be low energy and fuel-efficient. the mission is supposed to cost $180 million. we are just getting ready for that lunch, 15 seconds to go as we continue to watch the spacex launch of south korea's first moon mission. >> 5, 4, 3, 2, 1. ignition, lift off.

[cheering] >> falcon nine at successfully lifted off. keep yellow -- kplo below. shery: you were just watching a spacex rocket carried the first south korean moon mission. back here on earth, very much focused on the u.s. jobs report.

there may be an aggressive fed rate hike. kathleen hays is here with us. hawkish comments coming from the fed recently. kathleen: there is still no appetite to cut rates. it is still going to be rate hikes all the way. and the jobs report, it is not going to change the fed's mind. nevertheless, they would love to see a strong report so they can say, see we are right, we are not in a recession. the july payroll, 250,000, the consensus number. down from 200,000 in june. that is a healthy number showing and expanding job market. we have got the unemployment rate expected to it a 50 year low. wages, or .9% year-over-year versus 5.1% in june, still a strong number. once you take inflation out you

can barely buy anything with those paychecks. jobs are slowing of the u.s., but services to men is stronger post-pandemic. jobless claims are up a little but still very low. the fed is committed to bringing down inflation, that means more rate hikes. what about second quarter gdp contraction? consumption slowed the second quarter. there is to assigned the economy is on track. that is one of the most important things she said is inflation is going to determine the size of coming fed rate. there was a meeting on september 21. they get one more inflation report. at least it will do 50 and down the road this is going to be the role, you have got to what the data and then you know what the fed is going to do. haidi: the boe really delivering brutal facts that they are going

to be in for a longer session, inflation will not peak until october. will they have to keep hiking? kathleen: they say they will keep hiking, andrew bailey and his colleagues clear, they raised the key rate by 50 basis points to 175 basis points. still a relatively low level compared to others. the boe was one of the first two hike rates post-pandemic that they have been doing it slowly. inflation is supposed to be get 13.3%, and it is all about energy prices. you have seen the news about russia cutting things off and what will happen this winter when everyone has to cut back? andrew bailey said in the month of october alone you could see energy prices up 75% in the u.k., and it is turning consumers. what do you have left to spend on other things? here is what he said about what

it means for the future. >> now this rising energy prices has exacerbated the fall in real income so it has led to significant deterioration for the outlook of activity in the u.k. and the rest of europe. gdp growth the u.k. has slowed and the economy is forecast to enter a recession later this year. kathleen: very important, one thing that is important that andrew bailey said is they will act forcefully if there is consistent inflationary pressures, all options on the table for our september meeting and beyond. they just did a 50 basis point rate hike. he is keeping the door open for more aggressive rate hikes even though they are predicting a recession to start in the fourth quarter and last all the way through next year and lose 4%. haidi: kathleen hays there. nancy pelosi's visit to taiwan

is causing waves two days after she left the island. japan said china has fired five missiles over taiwan. for the latest let's bring in our chief north asian correspondent stephen engle in hong kong. what is the latest in terms of the reverberations from this trip? >> actually china as follow through on its threats about conducting large-scale military exercises in these six exclusion zones, china calling this the danger zone, warning aircraft not to fly there. it has had an impact on shipping lanes and some ships have diverted. we have seen as of noon yesterday with these wargames, military exercises began in earnest, at least 15 ships were seen in the taiwan strait. there have been past crises,

including the third taiwan crisis in 1995 and 1996 that disrupted shipping lanes and air flights. that is when a u.s. ship transited through the taiwan strait. the u.s. is responding to these exercises, john kirby spoke and said china has chosen to overreact to nancy pelosi's visit two days ago. they will keep the u.s. aircraft carrier ronald reagan and it strike group in the area to monitor the situation. he said that will make standard transit through the taiwan strait and the next few weeks. this is the u.s. ronald reagan where i visited the aircraft carrier in the philippine sea. five missiles transiting into the japanese exclusive economic zone, four of those went over taiwan territory. shery: let's talk about those

regional dynamics, because we know speaker pelosi is moving to japan. >> the last stop on her trip will be japan today after south korea. china as canceled a face-to-face meeting beginning -- between foreign minister. a g7 statement expressing concern about beijing's threatening actions over taiwan, pelosi will have talks with her japanese counterpart in tokyo today. shery: stephen engle there joining us from hong kong. we are watching a spacex rocket, which was carrying south korea's first moon mission. we are waiting for the falcon nine first stage booster two

land back on earth. it is the first stage booster engine and that is supposed to land on a drillship in the nearby atlantic ocean. this is after we saw south korea's first moon mission being launched. it is taking six different payloads designed to study magnetism and search for water. five of them are developed by korean universities and research organizations, one of them coming from nasa, it is supposed to capture the shadow regions on the moon as we watch for the first stage booster to land on that junction. haidi: -- drone ship. haidi: there is compatibility when it comes to that large stage, the cutoff is expected. the third stage will land on the

drone ship which is downrange in the atlantic. we will watch for that launch sequence. this is a long journey as well. south korea's first when a mission. we discuss white women are largely absent from the ports of japanese companies despite the former administration's push for womenomics. we get a recap for my guest. -- this is bloomberg. ♪

annabelle: -- does the shareholders have

approved it talk so as the ev maker tracks new retailers. it brings it down to the $300 range. no time is been specified for its effective date. tessa first announced the plan on twitter. elon musk said the company might make 1.5 million cars in a new factory location this year. u.s. officials have declared monkeypox a public health authority -- emergency to access more funding. monkeypox has spread to more than 26,000 people globally in just a few months leading the w.h.o. to declare the upper -- the operate of international concern. the u.s. leads the world monkeypox cases. diplomats from the u.s., europe and iran are meeting in vienna as an attempt to save the nuclear deal. diplomats: bloomberg the divide has grown wider. according to them two new

nuclear related issues have cropped up recently lengthening to list of hurdles. it is considered crucial to ease the global supply crunch. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. shery: take a look at futures trading at the moment, not a lot of movement after a very mixed station in new york. s&p 500 little changed, nasdaq 100 outperforming. in the future session, not much happening. even the bloomberg dollar index not very much. this as we are sitting on the sideline, given that we have the u.s. job reports, big set of numbers coming up on friday. haidi: i always get nervous when you say there is stop much happening -- not much happening. our next guest does not think

the recent rebound signals the bottom of the selloff. in terms of nothing happening, stocks, the dollar is holding. after quite a bit of weakness, ponder dropping as well. is there a big lack of conviction even in the rallies we do see? >> i'm not sure there was a lack of conviction, we always saw a very heavy selloff, the markets are down cheap definitely. we are not convinced we have seen the bottom. there is still a lot going on. the unknowns still are is inflation going to be extended beyond what markets currently calculate? we are getting a better handle on how central banks are managing a the outlook for interest rates going forward. but that can change, what has been interesting is the economic data is not showing the economy is tipping over.

they are components that are definitely slowing, and that will give the central bank relief. central banks are starting to get direction, but it is not clear to us. we think markets overall might have more downside to things deteriorate. haidi: whenever calling said the market reaction to alibaba, he has got a point. if you have not missed horribly reaction has been quite a bit of relief. >> absolutely, and if you look so far at the numbers out of the s&p beating expectations again. it may be that we start seeing an earnings decline in the next couple of quarters. maybe there has been a lag effect taking place. we have seen that in our own market, and the so-called confession season. the season has been reasonably nine. we have had a couple of

companies coming out having guidance on the numbers, but overall it has been quiet. shery: does that mean central banks will need to do more given that they need to in a way try to slow down the economy so inflation is reined in. >> i am not sure they need to be doing more. markets are factoring in the fed funds rate going to 3.5, 3.2. from a peak rate perspective that is currently factored into markets. whether there is a prolonged process by which they are raising rates might be part and parcel of what we see going forward. we just recently upped our view in terms of the reserve bank, the rate and pace of rises. where we are going for rates of 2.65, 3.1 into early next year, we think that could accelerate to 2.85 by christmas of this

year. shery: what about geopolitics given that speaker pelosi is doing the region? >> there is confidence but markets have behave themselves quite well. given the recent trip by pelosi to taiwan has been the headline grabber, and clearly we are seeing reactions out of china on this, but overall market seem to be taking it in stride. that is adding on to what is going on in ukraine. the geopolitical situation is escalating. whether it has a more hermetic impact than what we are seeing from an economic perspective, we will see how that plays out. it tends to be a lot of noise and tends to quiet down eventually. haidi: marten mickos -- lakos

joining us there. we have lots more to come on "bloomberg daybreak: asia." japanese futures looking flat at the moment, the yen is in focus as we get stronger-than-expected prints on u.s. payrolls. we could see further down trading in the yen, it is holding steady at the 132 handle. futures looking to the upside as we see traders sticking to the sidelines after a week that is seen stocks trending flat. potentially putting more pressure when it comes to asia as well. lots more to come. this is bloomberg. ♪

shery: we have breaking news it of japan, we are getting household spending numbers year on year, growth of 3.5%. we are talking about the first time we are seeing a gain of year on your numbers in four months, finally some recovery in the spending patterns of households in japan. even labor cash earnings year on year, growth of 2.2% and beating expectations. we are seeing more of a recovery in the japanese economy after we saw spending growth slowing in the previous month. we have seen virus cases across tokyo, recent new records, which it was feared that was going to affect spending, it seems for the month of june at least we are seeing those numbers beating expectations, growth of 3.5%. vonnie quinn is here with the first world headlines. vonnie: japan says jeanette

likely fired missiles over taiwan wandering military drills on thursday. if confirmed it will be a major escalation as china has never before flown missiles over time when it's out. tokyo estimated five ballistic missiles landed in japan applied exclusive economic zones. beijing is conducting military exercises in a response to u.s. house speaker's nancy pelosi's visit to taiwan. the bank of the wind as limited's biggest rate hike since 1995 in warning of a conversation i had. one policymaker that raising by 50 basis points. boe raised its beak inflation forecast to 13.3% by october. governor enter bailey says all options on the table for its december meeting -- september meeting and beyond. agencies are investigating sovereign and other government -related securities. citi is said to be cooperating. it was supposed to record right

down of russian sovereign bonds. the company is facing investigation into its credit card information. consumer financial bureau is investigating its reporting to credit bureaus. goldman entered into thousand 19 with the launch of the apple card. south korea has launched its first lunar orbiter, marking its first to go beyond earth's orbit. it will travel for 4.5 months before beginning more operations in february. its mission is to verified technology and measure global and magnetic strength. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. haidi: tesla shareholders have

approved that stock split. elon musk has also been talking about future factories, supply costs. let's bring in ed ludlow. we started with news of that approval being floated through. since then is been talking about inflation coming down, because coming down. >> he made interesting comments on the economy. he does a presentation but also given day, and this was one of the questions and he cited the downward trend in tessa's quantities and components cause. because i is this global purview with factories in asia, europe, the united states and he says that can change, but on that basis he expects inflation to drop rapidly without specifying a time for that. he does expect a mild recession that could last around 18 months, no timing on when the that. he also warned that making

macroeconomic prognostications is recipe for disaster. this is a guess, be warned. shery: everybody is listening to whatever he says. what did he say on china-u.s. tensions given that we have speaker pelosi in the region? >> again, this was a question from an investor about how he views the geopolitical tensions between the two nations anymore this was going to get him in trouble, but he said broadly he hopes for peace between the two sides. china is critically important to tesla, a massive factory in shanghai that as quickly become the crown jewel of its manufacturing. the relationship between musk and the chinese government has been scrutinized. he played it straight down the middle on this occasion. haidi: it is a big distraction,

the trial that is pending with twitter. we heard more commentary from twitter in terms of how they feel about the counterclaim from musk. >> on stage musk was asked about twitter, and he said tesla and twitter are the only public company stocks that he holds. he said he felt he understood the product really well and that he could help twitter. it is interesting because over the recent days he has filed a number of counter suits, there has been subpoenas and he alleges twitter misled him, that he was hoodwinked. this is pretty normal, it is part of discovery to have subpoenas flailing -- flying around.

he estimates or his team estimates the user base is 65 million less than what twitter says it is. he also says those measures that are exposed to advertising our fraction, both claims twitter denies. it is a back-and-forth. shery: we are very much looking forward to that trial coming up. ed ludlow with everything on tesla. we are watching for major asian markets to open. we will see if we see a reaction from alibaba's earnings, they were better. let's bring in annabelle. it was not too bad, given how bad we thought it could be for this tech giant. >> a low baseline is also helping the reaction here today, but you would have to say this push to cause corrective pain in dividends. taking a look at top line, we sought revenue coming in it

$30.4 billion in the three months ending in june. it was the first ever decline on a quarterly basis, but we still saw a slight increase on expectations, a son of the impact china was rediscovered zero policies are having particularly on consumers. you also have looming fears on detect crackdown and the u.s. as added alibaba to a list of companies facing expulsion from exchanges. overall the result in revenue is being seen as a positive from the e-commerce position. the other we are watching is [indiscernible] and key strategies for alibaba because china does like the west and other nations in spending in this area. in terms of what is ahead, this is all about taking a disciplined approach to spending. alibaba at once just go back in this area where it is not seeing long-term value potential.

that approach is very much in line and a big shift from aggressive spending. shery: what are we hearing -- haidi: whatever hearing from analysts given these numbers? >> there are have been a lot of things in terms of what we are hearing from analysts. citibank is among them, and they are saying the results could improve overall market sentiment on fundamentals. morgan stanley says it shows a potential drive for efficiency. there is still a concern about gaining more wallet share versus new users, and that does speak to one of the concerns the ceo spoke to. the power of chinese consumers is shrinking, so that is a negative for some analysts. haidi: we will get more on that, annabelle droulers.

something, we see more pressure on the founder amid difficult outlook. why are we seeing this happening? >> what we are hearing is that there is not enough incentive for the top talent to state with softbank, with a lot of the attention very much focused on the ceo himself. although their paychecks may be higher than the salary, it is not as lucrative compared to those of top-tier foreign companies. performance is falling below the industry average, there is less attraction not only for the investors but also the top management talent to stay with the firm.

shery: what does this mean for the outlook for softbank? it has faced so many different challenges. >> right, some analysts do say these people can ultimately be replaced, but it does highlight the continue challenge softbank faces, and this adds to softbank's growing troubles especially at a time when global stockmarkets are performing very poorly, which is a giant blow to softbank's earnings. many say there is not a way vision fund could manage a turnaround without a global stock market rebound, which is beyond your control, so there is a lot of attention focused on something, a number of

challenges -- soft bank, a number of challenges. shery: coming up, women make up a very tiny portion of board space on the nikkei225. our guest discusses the obstacles and what needs to be done next. this is bloomberg. ♪

shery: according to data compiled by bloomberg women held 32 more seats on the board of nikkei225 companies and the second quarter up from the previous quarter. despite this improvement the flow of women into boardrooms in japan as were made a slow drift. let's bring in our next guest runs consultancy that promotes diversity and inclusion in the country. jackie, good to have you with us. what progress do you concede that is most notable in japan, and where does the country still lag? >> yes, and i think there are several factors that contribute to creating a hospital environment within public policy or practice is in terms of how do we enumerate and reward and therefore can be relieving caregiving needs in different

relationships. i think there are multiple interventions that we need and the corporate board conversation cannot focus on one tactic. womenenomics -- structural changes that are addressing the root causes. one thing that we see still today of course, we see 30 million women in the labor force. of that only roughly 12 million are in permanent positions and those are the final to go up into management track, senior management track. that tends to be the pathway. if we are not expanding opportunities for women in full-time employment, and the pandemic has exacerbated things heavily in that area. shery: there is such a huge divergence between full-time and part-time workers in asian countries, right? what about the final when it comes to building that pipeline

of students, of women who can actually transition into these careers. the reason we saw big scandals in japan was the medical school in tokyo systematically excluding female students. >> absolutely, and i think maybe the one piece we need to take forward is hard conversation is this is not unconscious bias at. these are systems according to a certain design logic, many of which were based on the model of post-world war ii's japan's economy where men would be corporate warriors working long hours the company, and women would be the stewards of the household and caregiving elements of the family. that no longer holds true for the last 30 years, and get we have not seen a lot, corporate hiring models and mental models switch to embrace that women are coming in, i.e. full-time

permanent career track all the way through are we checking with indicators that there is equity in promotion, are we making sure we are addressing a system of biases that are from a past era? we need to look at our public policy and our ecosystem, look at system design and say there is inequality still, it is in the design. haidi: what we are talking about , structural barriers here. we know in so many ways, japan politically as not been great at bringing down structural barriers and forcing structural reforms. what -- why do you think that is so and what could change that? >> if we just look to the root division of labor, the gender

division of labor is strong, and that mental model is not shifted into with the couples organize work balancing and organizing capacity, how they structure the home, how they negotiate with their grandparents, who is doing caregiving. one of the disincentives to the men taking long caregiver leave is is enumerated to a large percentage. if that means the primary breadwinner salary drops to 60%, how do households continue with that option and encourage fathers to take the full year leave off if it is compromising household revenues? i think we went to think about 100% salary replacement such that men can lean in and be fully active fathers particularly in those first caregiving two years where imprinting and bonding are critical between the father and the child. haidi: we want to talk about the

wage gap as well, which is the worst out of oecd nations. there is a proposal for companies to have to disclose that wage gap. do you think that will help? >> as a political scientist i am sure all scientists will say we want more available so we can do longitudinal studies, and we want women's organizations to have the data so they can see where the performance is at. there is a talent crisis in japan with a shrinking population. talent needs to be able to see which companies are performing, and having more data is always a welcome thing on all fronts for society and democracy. >> do you think -- shery: do you think that will happen though? we have seen reluctance about disclosing information. what sort of progress is feasible in a country that is

known for changes that are very slow to come? >> one of the fascinating things about japan is well certain changes are incremental, i think you also see in many instances that once there is a decision from the top and there is momentum and agreed leadership from the political elite, the economic elite, when that decision kicks in and there is effort and political will to say we are not going to make progress on this particular piece and we will move hard and have accountability mechanisms put in place, there is a faster pivot and ramp up in japan that we do get culturally speaking that can allow for that catch-up to happen than in other countries. haidi: great to have you with us , enjoy japan founder and ceo. let's get you back to spacex, south korea's first intermission.

we are seeing the process of that lunch continue to take place. kplo now seeing deployment. this is south korea's first exploration to the moon. we know this is a longer-term project and the process will end in december when it finally gets to the moon. we have more to come on "bloomberg daybreak: asia." this is bloomberg. ♪

haidi: a check of the latest flash headlines, bloomberg is learned facebook. meta sold millions of dollars in debt and its first corporate bond deal. the social media giant sold around four parts with the longest part being security. meta was one of the few s&p 500 companies without debt now and is facing sewing catalyst. quite its greece -- credit suisse is reducing its global headcount. bloomberg has learned the company is examining if agencies in its middle and back office and is expected to finalize plans over the coming months. credit suisse began trimming roles in asia last month. according to a report from a compensation consultant bankers on wall street can expect the

bonuses to be slashed from 2021 levels. incentive pay for those underwriting debt and equity could plummet by more than 45% this year from last. those that emanate notice a 25% fall and noted that 2021 was extraordinary year. like rock is teaming up with coinbase to make it easier for institutional investors to trade bitcoin. the world's largest as it manager will allow companies to use a system to access the coinbase exchange. blackrock said the focus will start with bitcoin. coinbase shares jumped on the news. evergrande says it will receive a refund after canceling a contracting build of a football stadium in the city. the refund will be transferred into a project account with the funds used to settle debt related to the deal. evergrande is expecting to take a loss of $180 million minus that refund. shery: look at futures trading at the moment, we are struggling

or direction in the asian session after the s&p 500 landed flat, nasdaq 100 outperforming given that yields were falling. we are seeing upside integrating with s&p mini futures up 0.10 of 1%. we continue to wait for the u.s. jobs report, initial jobless claims rising to the highest since november. look at fx trading at the moment. we saw the yuan climbing decision eyes as we continue to see weakness in the u.s. dollar. these are the stocks we will be watching when trade opens in asia. precious metals, miners could move along with gold and silver prices as we continue to see tensions between u.s. and china over taiwan. vaccine makers see tears higher after u.s. health officials

declared monkeypox a public health emergency. korea's neighbor just reported second order earnings that missed average analysts' estimates and we will be looking for how that stock opens at the top of the hour. asia has a cautious start. our guest make sense of the numbers to navigate volatility. a rally in the u.s. after alibaba reported better-than-expected revenues. our guest gives us his outlook for the tech sector. the market opens in seoul and tokyo are next. this is bloomberg. ♪

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yvonne: this is "bloomberg markets: asia." were coming down to asia's major market open. central bank don't focus as you just had that biggest rate hike in 27 euros from the bank of england. -- 27 years from the bank of england. >> the outlook from the boe looking like we are in for a long session. we are hearing from elon musk speaking at the test lecture holding that a shareholders meeting that he feels inflationary pressures are coming down. >> that is the central -- theme of central banks to rein in those pressures we are seeing. forecast treasuries as well as the markets in japan, korea and australia. focused on earnings as well.

we've seen mixed numbers coming through from the u.s., mostly to the upside. still that global outlook, we are seeing an economic slowdown from the fed. geopolitical fears there as well as nancy pelosi continues her trip to north asia. we did see china calling up a meeting with japan after joined a g7 announcement questioning beijing's threatening actions around taiwan. this morning, we are sitting the dollar holding fairly steady. fairly tight range on japanese stocks pretty flat. let's go to what were sitting in korea. we are keeping an eye on chipmakers at the start of trading. we saw that rise more than 13% in the previous month. still a slowdown for a sixth straight month, the longest stretch of slowdown were seeing

since the trade war in 2018. keeping an eye on the korean won, that is strengthening just a little. it has been one of the primary countries that needed to dip into its reserve to shore up its local currency. we do have that narrowing injury and. what we are seeing and australia, the conference going on in western australia this week. this -- were keeping an eye on what were sitting in the energy complex, we did have crude declining down .4%. it is on trend for deep weekly loss. >> we're talking about levels we haven't seen since before the russian invasion of ukraine. our senior asia-pacific analysts here. what are you watching the market? we have everything she just

mentioned, whether it is demand, returns over oil prices going down. >> so there some of the finest minds in the financial world, are we going to have a recession? are we going to get a soft landing? i feel like we are going to see some sort of recession. commodity prices reflecting that reality as well. as is the fall of u.s. bond yields. the last piece we need to see fall into place is a slowdown in u.s. employment numbers and we may get that tonight from the u.s.. payroll data has remained very strong. >> we have seen jobless claims rising, job openings falling. if we do see a slowdown in the

economy, that may mean the central bank will slowdown. is that why we continue to see these rebounds here and there? not necessarily long-lasting. >> i think that may be misplaced. we look at the asian currency, most are still very much toward the low side of the range, including the one. -- the won. and then did that they have a decision later on today. they are using the pretext of lower interest rates as a reason to buy into the stock markets. the risk here, inflation is not going to miraculously disappear because we are in a recession.

we have a lot of hard work to do, they will be hiking into a climate of falling growth. >> what does that mean for risk? >> i think this is a risky trade. i applaud their optimism, but isn't that simple. the reasoning, it leads to the tech space, it is a bit flawed. a recession with rising interest rates is not going to be a constructive environment for the stock market. this is a bear market rally. >> it is been slower for australia, with the big earnings season, starting to get underway next week. are you more optimistic or managing your expectations? >> i think it is going to be a good earnings season for

australia. only because we're not going to see the slow and commodity prices. that may be a story for the q4 earnings. if anybody is in a better place than any other country in the world at the moment, it is australia. there a mass producer of commodities, energy, agricultural goods. the kind of things people need in their lives whether we have a recession or not. i'm not particularly negative on australia at the moment. >> we continue to get this ribald news when it comes to the china property sector, we are hearing evergrande will be receiving i refund because of a stadium they are not building a more. will china come to the rescue with all their stimulus measures? we keep talking about this. we still are not getting any concrete evidence of their coming into play.

>> i think it is a trademark, we still got more to see from this. i think china hopes to quietly manage the situation behind the scenes over the next few years, including evergrande. will see that about mortgage strikes and etc., and more property developers under pressure. it is going to have to get -- i believe that means a lot of the stockholders in these property developing companies are going to feel -- they're the ones are going to pay. the shareholders are going to get wiped out. >> jeff hallock, asia-pacific senior market analyst. >> some of the biggest energy companies in asia, we do see

brent crude coming online in the downside this morning. consent on the health of the global economy, what the impact of the fed and other central banks will be. we see that heading for a deep weekly low. were keeping an eye on some pharma companies in japan this morning. they are rising, the reason for that, the u.s. declaring monkeypox here aus health emergency. we harassing some gains there. we did see a report at this morning that the power drain we are seeing from that japanese tech giant is increasing. two more key executives leaving. >> that pressure has been on for a while. let's turn to vonnie quinn with the first word headlines. >> u.s. health officials have declared monkeypox a public health emergency.

monkeypox is spread to more than 26,000 people globally in just a few months. the cdc says the u.s. leads the world in monkeypox cases. the u.s., and iran are meeting in vienna at two save the nuclear deal. according to them, -- is seen as crucial to ease the global energy crunch. they have approved a 341 stock split as they seek to attract more retail investors. brings the shares to around the $300 range. speaking of tesla, the company

might make 1.5 million cars and announced a new factory location this year. south korea has launched a space rocket project in florida. it will travel toward orbit for 4.5 months before beginning normal orbit in bright. it will measure gammaray and magnetic strength. global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn, this is bloomberg. >> we are getting some more commentary from the japanese prime minister, saying he has lodged a strong protest to china over the missiles, given that we have seen those flying over japan's exclusive economic zone.

sing japan demanded that china -- sing japan demanded that china hope the drills. there concerned u.s. cooperation -- that they -- it is -- china has made good on some these threats. according to japan, this is the biggest prostrate exercise investment -- biggest prostrate exercise in decades. all this, when it comes to the u.s. japan alliance, the south korean president not meeting with speaker pelosi, opting for a phone call instead. coming up, alibaba posting better results than expected. we get analysis on all that. plus the global implications for

china tech. this is bloomberg. ♪

>> take a look at asian stocks at the moment. health care, reading gains. energy is the one sector that is down. brent is around $94 a barrel.

we are talking about both of these oil prices, levels we have not seen since before the russian invasion of ukraine. given concerns about an economic slowdown. haidi: nancy pelosi's visit to taiwan, still leaving geopolitical way. japan said -- for the latest let's bring in our chief asia correspondent in hong kong. beijing talk about the fact they are displeased with the -- japan telling beijing there -- >> nancy pelosi on her final

stop in tokyo on her asian trip, japan has demanded china hope these drills that began in wake of her visit to taiwan. there are six exclusion zones set up encircling taiwan where there are military drills and missile tests being conducted from now until sunday. but the concern is that this could escalate into it similar crisis as we saw a 1995 to 1996, the so called taiwan strait crisis that lasted for months. it consists of a lot of saber rattling, and the deployment of two u.s. carrier groups, including the nimitz, which went through the taiwan strait and the independence. the u.s. is also saying the ronald reagan aircraft carrier is on station in the region and could potentially carry out

operations through the taiwan strait. that happened in 1995, in december. that worsened relations between china and the united states. if we get to that point again, that is where this standoff is heading. >> we have speaker pelosi in japan, we are hearing from the prime minister, condemning the missile launches. >> that's right. this is the final stop in the visit by nancy pelosi. she will be meeting with other japanese officials after this morning meeting with the prime minister. it also comes against the backdrop of the foreign minister of china canceling a face-to-face meeting in cambodia , with his japanese counterpart. they are protesting desperation is protesting the g7's statement that says -- voicing concern

that beijing's threatening actions around taiwan are destabilizing. a strong protest to china over those missile tests and its own exclusive economic zone around taiwan. >> chief correspondent stephen engle joining us from hong kong. we do have plenty of action on the monetary policy side of things. investors focus on the u.s. jobs report and what it may mean for aggressive fed rate hikes. our editor is here for the latest. >> we know she is focused on fighting inflation. at his job number one. in terms of the job numbers, they are probably going to reinforce the idea that most fed officials have, the economy is still in pretty good shape. the labor market is still in good shape.

the consensus forecast in our survey is for an increase of 250,000 dollars -- during 50,000, solid enough to keep the unemployment rate in july at 3.6%. near a 50 year low. wages rising 4.9% year-over-year. that is still about double what we were sing before the pandemic. we see job openings falling from the highs, hiring coming down a bit. jobless claims are still low. another sign that the labor market is on track. they are committed to more rate hikes, the economy is not in a recession, it is inflation not jobs that are going to just -- determine coming rate hikes. if we get a week's cpi will pour, maybe that is the thing that could guide them.

>> kathleen, let's look at european futures and ftse futures opening up at the moment, given we had pretty strong bonds -- strong indications the central bank should continue hiking rates. not see much upside when it comes to futures. .2% higher, ftse futures lower. earning -- today have the will to keep hiking rates? they signal a could be a long and painful recession for the country. >> that is the question, it looks like andrew bailey is quite sure they can. the boe hiking there key rates by the most in 27 years, 50 basis points to 1.75%.

almost a unanimous vote. 8-1 for this bigger rate hike. we now look for inflation to make this year at 13%. it is running more than 9%. we're seeing energy, natural gas prices, just think about the war in ukraine and everything it has done. russia cutting off supplies, the governor of the boe saying energy woes are going to rise by 75%. this is not just a inflation problem, it's an spending problem. he thinks a recession will last fourth quarter and all of 2023, they are going to look for signs of more persistent inflation. if necessary they will act forcefully in response. all options on the table for the september meeting. he left the door open for a basis point rate hike. the central bank of india,

expected to hike 25 basis points. they starting to cool off inflation, they are expecting -- of 5.75 on the key rate by the end of the year. we have plenty of foreign exchange numbers to support it. this is another reason people expect to watch carefully and hike rates as they have to. today, a more modest move. >> you can get a roundup of the stories you need to know to get your date going on daybreak. it is also available on the app. you can customize the settings so you just get the news on the industries that matter to you. this is bloomberg. ♪ ♪

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approved a 34 one stock split at the annual meeting in austin. let's bring in su keenan. they say this is a perfect time, given that the stock is rebounding. >> the stock outperforming the nasdaq 100 and the s&p 500. moving 50% from that low. up after hours, more than 4% gain as investors bracing this 341 split. a lot of people watching on youtube, 34,000 viewers taking in the news. tesla shareholders approving 341 stock split. -- a 3 for 1. that is going to bring it to the

$300 range. that is going to make it more attractive to shareholders. tesla first announced the plan back in late march on twitter. this will be the second stock split in two years. they had a five for 1 stock split. >> what were some of the other car lights -- the other highlights? >> he had a big enough audience to say to his the world's richest man and ceo of this company, a lot of people pay close attention to his economic outlook. he sees commodity prices trending downward over the next six months. past pink inflation. he said i think inflation is going to drop rapidly. he reiterated his prior

comments, that perhaps a mild recession is going to hit, it might last for 18 months. he also says maybe the supply chain is getting better. he applied for 1.5 million units in 2022, that is the number of course he expects to make. several of the key issues for corporate executives were turned down. a lot of shareholders voted against a proposition to allow board of directors to serve two-year terms. a bit of a disappointment for management. back to you. >> let's get your quick check on the business flash headlines. credit suisse said to be discussing an aggressive plan to reduce its global hypoxic does headcount to/costs. there expecting to finalize plans over the coming months. they began trimming frontline roles in asia last month.

according to a report from a compensation us consultants of wall street can expect their buses to be slashed from 2021 levels. m&a could see a 25% fall. 2021 was an extraordinary year. they boosted by global operations. the flagship company reported -- revenue jumped just over 8%. coming up next, the 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

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asia. check on markets, 30 minutes into the trading session for japan, australia and korea. we are looking elevated in terms of trading values. all these issues investors have to contend with, front and center is the state of the global economy. mixed-use and company earnings. the other issues, the u.s. jobs report should give us clues as to how aggressive the fed needs to be. it is all about inflation, let's see what we are looking in terms of supplies and asia we did get question from elon musk earlier, he said inflation is now trending down in the import costs are lowering. there is going to be a steep drop in inflation at some point in the future. in terms of the reaction, looking the exterior. we are also contending with

geopolitics as we see continued aggression from china's of the military drills there carrying out in response to nancy pelosi visiting taiwan. we did hear from the japanese prime minister. he spoke earlier saying the drills china is carrying out our a major concern for its national security. defense stocks moving higher, perhaps a reflection korea's president was the only leader not to meet pelosi in person. this bank losing a number of top executives, let's bring up our technology reporter, why is this happening and whether we seeing? what's one of the key reasons is that there's not enough

incentive for these to state with softbank. with much of the tension focused on self. when you talk about compensation, although their paychecks may be higher than the official salary, it is not as lucrative compared to some of the top tier companies. the performance below the industry average, there is less traction for talent to stick with the firm. we are seeing a lot of them opting to leave. >> we are getting earnings next week, what are we expecting? >> we have earnings -- a lot of expect a lot another net loss.

it is a reflection of the continued lackluster stock market performance. we have yet to see the extent of the losses. it varies in a wide range. a lot of analysts are saying unless there is a big market rebound, it will be hard to see softbank's earnings. >> are technology reporter with the latest. we got up vonnie quinn for the first word headlines. >> the bank of england delivered its biggest rate hike since 1995, warning of a rock -- long recession ahead. raising interest rates by 50 basis points. the boe also raised its peak inflation to 13%.

all options on the table for the september meeting and beyond. japan's is china likely fired missiles over taiwan during drills on thursday. it confirms it will be a major escalation. tokyo estimated that they landed in japan's exclusive economic zone. those exercises in response to nancy pelosi's visit to taiwan. regulatory agencies investing -- investigating the bank. they are said to be cooperating. they are forced to report a breakdown on russian sovereign bonds. the consumer financial protection bureau is

investigating the reporting to credit bureaus. global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn, this is bloomberg. >> credit suisse executives discussing reducing thousands of jobs globally, to cut costs raised by an additional $1 billion. let's bring in our investment editor, what we know and who will be affected. >> credit suisse is considering cutting thousands of jobs, the bank is on the verge of a big decision, which has been coming up for a while on whether to drastically cut back on the investment bank. the biggest rival, deutsche bank

also made a similar move years back. they still have investment trading operations, is always been a conflict with the bank itself, unfortunately, it may be cuts. the last time something like this happened, was in 2016, most recent fear was last week, a bit of a leftfield choice, but he has a background in cost-cutting. now were wondering if that could be a big thing. >> multiple disasters facing

credit suisse is is this enough to restore confidence? >> if you look back to the example of deutsche bank, they began trading cuts, while they didn't completely exit -- they have cutbacks, credit suisse did not take on the decision from bad to worse. it is becoming increasingly difficult for bank management to explain why they keep getting hit by these freak losses. it is a swiss bank, so the swiss government feels it has a say in wondering why they are allowing it to continue in this way. >> that's patrick winters there

with the latest on credit suisse. top of mind when it comes to that, is how to get back to hong kong. hong kong was to rebuild itself to plant the survival after what we've seen, the economy and's reputation as a regional mobile hub being financed -- being impacted. it is clear ahead of the ski summit that is being planned for november as of the wall street ceos have been invited to attend, including the chief executives of morgan stanley and goldman sachs. they want to see no quarantine. quarantine one of the conditions for senior executives to attend this conference. the banking regulator in hong kong is having conversations with lenders on how to pull off the two-day event.

>> is a tricky situation for these banks working hong kong. also when it comes to dealing with the macro environment. we seen so much volatility in the market, which has been good for their trading revenues, we are hearing trader -- buses will climb for the fixed-income peoples people, they may see a 20% increase in bonuses. but there are two sectors of the banking community that may not see that. we are talking about investment bankers. their bonus pay could fall 45%. for some this is appointed compensation assault -- consultant. mergers and acquisitions could see their buses/25%. this whole industry, having to

deal with the changing macroenvironment. that also affecting alibaba is that they did post better results than investors feared. we will break down those numbers after the break. they failed to give an outlook. this is bloomberg. ♪

>> we are watching chinese tech stocks today after it rallied on alibaba is better than expected results. we call our tech editor, what does this tell us about the outlook for the broader china tech universe in 2022? >> alibaba -- the earliest to report earnings. it shows us that the consumption may not be as bad as believed. there is a chinese consumption recovery. the only question is the extent to which that will happen. we saw a bunch of chinese stocks , the big names rally a little bit.

alibaba's results gave us cautious optimism. >> you mentioned the optimism -- the consumption is not as desire is feared. what did we learn about the results from that? >> i think two things. they came out publicly to say the recovery started in june, and most likely accelerated through july. if you pause his comment, there is cautious optimism this trend will continue. if all goes well, not just on chinese taxa but companies in general that rely heavily on the health of the chinese consumer. investors -- there was some debate about whether chinese

investors could bring that under control. it looks like alibaba has managed to do that. >> does her china tech editor, let's get more on china's tech sector. great to have you with us. if you look at as a bellwether for the larger china tech space, what did we really learn and take away from those numbers? >> after three consecutive quarters of 20 to 30% earnings decline at alibaba, the last quarter was a decline. our estimate across the board, for china internet companies is we are seeing this earnings inflection from the september quarter, flat to earnings. it will be back to mid-peak earnings growth. this alibaba beat has been

trying to get in line for what we are expecting the second half. a lot of the weakness in consumption started from second half of last year. companies and cost cuts, they are cutting new losses, more rational control on earnings growth. coupled with valuations, that we favor e-commerce has not set this, advertising will be one quarter live. we need consumption to come back before they're willing to invest more into advertising. >> where your preferences in terms of the individual businesses across the space. we learned more about the health of the chinese consumers of the chinese consumer, there's always that overhang of what regulations might do. >> on that front, we saw july

volumes were up faster than june. that has been in sync with what the ceo talked about in july versus june, that they saw consumption trends. we feel like consumption within e-commerce, -- overall, we see it -- was happening increasing share. more share of users, within this trend will continue. >> when we look at chinese tax, or between those that actually benefit from the reopening, and those that are pandemic darlings. are we going to see the reopening trade catch up?

>> in our outlook, we look at how the lockdown beneficiaries have mostly outperformed reopening companies for 12 to 18 months. as reopening hopes coming further, remain something that has to be tracked closely. we do think there's potential for the reopening plays, apparel has been exceptionally weak over april, not a surprise, but as we had to an opening, as more chinese consumers buy clothing and embrace local services, we think this will benefit. watching out for when it comes the regulatory environment? what are the next measures we ds we are seeing. companies are preparing,

safeguarding their listings with increased listings changing -- that expands to the mainland investors. we will continue to track how they continue to negotiate. generally, we would see implementation of -- >> goldman sachs, head of asia internet research the brutality back. coming up next, hong kong's fintech companies, with just 50 employees of its stock growth, making it more valuable than goldman sachs. details just ahead. this is bloomberg.

♪

>> here's a quick check of the latest business flash headlines. blackrock tubing up with coinbase to make it easier for institutional investors who big points. they will allow them to manage their exposure to the crypto exchange.

blackrock says the focus is on bitcoin, and coinbase shares up. evergrande says it will receive an $818 million refund after canceling a contract to build a football stadium. the refund will be transferred to the escrow account, with funds used to settle debt. they are expected to take a loss of $185 million minus the refund. one of the world's most successful investors cutting ties with amsi, -- became worth almost four times more than goldman sachs. it's a wild time for a company that only has 50 employees. let sheds more light on this.

what we need to know about this company, what is going on here? >> that is information out there about the company, nothing that could remotely justify this kind of run-up in the share price. as you noted, it is in christ it's still got a market cap of $148 billion. >> what was the relationship between investor and the stock and what is happening now? >> i don't think they been particularly closely involved. the ultimate parent of a mtd digital -- that was back in 2003. at stake is less than 4%.

we don't know the reason why they decided to get out, but it is the timing, it is suggestive. if the stock just went up 14,000 percent, it is probably a good time. >> are they concerned about the scrutiny that might come? >> it is possible. it will be strange if there wasn't some regulatory scrutiny of what's happened with a mtd stock. given the size of the increases, and now the reversal, multiple trading calls almost every day because they keep triggering circuit breakers because of volatility. there is no rationale behind this increase in this incredible market value the company has amassed.

big jumps >> happen all the time. could that be an explanation? >> i don't know. we are stretching here to imagine what could possibly have traders -- have led to this insane an increase in the price. it stock ticker is much better known to everyone around here. it is close to amd, which is been in the news recently. probably a much bigger company, of a trade went astray, if someone was meaning to buy amd instead of amtd, because -- that could have a more exaggerated effect on the price. the way these things work in

markets, investors to the press going up as a baby they just pile and behind that on the expectation it is going to keep going. >> networker there within interesting move on amtd digital stock. some stocks we are watching when markets open in hong kong and the mainland, tech shares because of alibaba's better-than-expected results. and then chinese developers, they may move after -- several cities have moved to tighten oversight of property. the market opens in china next. this is bloomberg. ♪

♪ david: good friday