heidi: good morning, welcome to

daybreak australia. annabelle: we are counting down to asia's major market open. shery: the top stories this hour, u.s. stocks opposed to small gains with investors holding back big bets ahead of jerome powell's speech on friday. we are live at jackson hole. heidi: new measures to stabilize the economy, pledging to use all tools available as growth slows. shery: full-year earnings this hour, analysts watching for any commentary on staffing constraints and fuel costs. the asian session is after the struggle for the direction in the new york session, nobody wants to make any big beds ahead of jackson hole so we continue to see the lack of clear direction. 10-year yield is above

expectation, or hawkish fed officials coming out and talking about aggressive tightening. we are watching crude prices higher today. we are talking about u.s. exports rising when it comes to crude and petroleum products. it is the type trading range we have seen the s&p 500 lately, it shows it was the seventh consecutive day where it was within the 1% range. there is a lot to digest, a lot of recall data. a mixed picture when it comes to u.s. home sales coming down to the lowest since the pandemic. factory orders for capital goods beating estimates, we have not seen despite trading, we have only seen it about three times this year. -- this type trading, we have only seen it about three times this year. given it is the summer holiday

season as well. heidi: we have also seen the low trading volumes, not just in the u.s. but also in asia. wait and see mode ahead of jackson hole later this week. modest gains, key earnings also on the board today, qantas will be out this hour. we are keeping an eye on the yen . interesting survey came out, the government was asked about policy, even if inflation hits 3%. speaking of central-bank policy, there is another big position to today from the bank of korea. expectations are set to resume, quarter-point moves to the outside and we are in the midst of a height boom -- tight boom.

there is no trading. heidi: in hong kong, it never played out in such a dramatic way when we workday o -- when we were there. underweight in a most central banks around the world. a nobel laureate speaks, you tend to listen. he says the height of the fed will worsen inflation rather than fixing the target. the high rates can make the supply side even harder because it could make it worse. investing more a bottlenecks but i interest rates can make it more difficult to make -- but high interest rates can make it more difficult. feeling the brunt of the interest rates and they are passing it on. shery: when americans are

feeling the pressure not only of prices but of debt continuing to rise. when it comes to student debt, one of the sectors has risen quite fact and president biden today trying to solve this problem, announcing a sweeping packet of student debt relief that forgives as much as $20,000 in loans for some recipients. generations being saddled with unsustainable debt. one of the key issues americans are facing in their daily lives when it comes to prices, rising leverage as well. we do have breaking news it comes to aia earnings. value of new businesses has fallen. this is in line with estimates, the premium income on $15.57 billion.

coming in at 40 hong kong dollars, $.28 -- $40.28 hong kong dollars. the first half offering. as key metric we have been watching has been the value of new business for the insurer coming in at a contraction of 15% which is in line with estimates. we knew the results could be week given the covid lockdown in china. the shares have fallen more than 5% this year. relatively better than the hang seng index. we get more on the results and exclusive conversation with the aia ceo. heidi: we continue to get decent numbers earnings, central

bankers from around the world gathering in wyoming for the annual symposium, the spotlight is on jerome powell. kathleen hays joins us from where the all of the expected and our growth as it reporter at our chief cross aspect correspondent. you are at the epicenter of everything that markets are watching for this week. what are we expecting? >> here we are in the sh adow of the mountains, we have been in jackson hole and it is probably one of the hardest, most important meetings. a couple of weeks, last month about what jerome powell is going to say at this meeting. friday morning he opens the symposium officially and this is

a place where fed chairs have chosen to make a clear, statement, a signal about where policy is heading next. markets seem to be doubting jerome powell's resolve and risk inflation. in terms of what he is expected to say, that is the question of will he doubled down on inflation is still too high? those are the questions everyone is asking. the former dog who is now the hot saying he is worried about -- the former dove who is now the hawk is wondering about cutting rates, the fed is looking for the funds rate to get to 4% and stay there. these are the questions jerome

powell will give some kind of single about 80 this speech -- in this speech. heidi: this environment we are seeing in the markets where you have everything moving in tandem. stocks, bonds, commodities. what is at stake? >> the market reaction could be at risk for this jackson hole meeting on friday. barclays had a note warning about the fact that the cross as correlations between stocks, bonds, and commodities is at one of the highest levels in 17 years. any surprise on friday could result in a cross asset wide risk type of event and it will not be a lot of places to hide. there is a big idea type of symposium, it has become an event a lot of markets are

watching closely. that underscores how jittery traders are getting with this aggressive monetary tightening cycle. heidi: we are watching for the bank of korea's decision today. is it normal programming in terms of 25 basis points? >> there is only one economist in our bluebay are -- bloomberg survey who thought they were alluding to -- everybody is leaning towards 50 point basis hikes. while above the upper limit of their target. the economy may be feeling the effects of so many things and looking at the recent export numbers suggesting there is a slowdown in china, the bank of korea is more cautious here, these are reasons for them to undo the 25 basis point rate

hike, a 50 basis point rate hike a surprise. the bank of indonesia or not going to, nobody expected them to hike their rates. they jumped out and did a big right. -- rate. heidi: interestingly china are planning measures to stablize growth. a few number of points, already we have tons of other lenders in place. >> it is less specific than what the pboc in lowering the prime rate, getting developers projects going again and delivering homes to angry mortgage holders. this is the state council coming out with a 19 point package to stabilize the economy.

they are not going to overflow the economy with more stimulus. there is a dual pronged approach. the stabilizing economy while not exacerbating the overleveraged nature of the developer. they do not want to exacerbate the bigger problems in the chinese economy. they want to stabilize the uncertain date with the power crunch in the south and the disruption of manufacturing and the ongoing with no end in sight of covid zero. there are headwinds that the policymakers have to address. the state council is trying to encourage the provinces to do their part and take advantage of the existing measures with special bonds. in this political year in china, getting these leaders to stick

their neck out and make a moves is risky for them. that is what the state wants, there are so many factors at play here. this is a broad a signal of strength that the authorities in beijing realize they have some headwinds and they want to stabilize the economy. heidi: live in jackson hole, r cross asset reporter in new york and our correspondent in hong kong for us. we are live at jackson hole later this week for that crucial powell speech and philadelphia, st. louis, cleveland, and atlanta. we have major conversations coming up with the central bankers. stay with us, we are getting the bite of korea decision today. we are speaking to the bok boss as well. >> chinese prime minister is a

stepping up as the nation caretaker leader as the prime minister rules on whether he has reached an eight year term limit. he seized power in 2014, he has days to respond to the decision. $2 billion and -- $3 billion in weapons for ukraine, president biden says he is ensuring they can stay during the long-term. ukraine celebrated its independence from the union in 1991. the u.s.'s response to revise the nuclear program, the eu says the u.s. response has been passed on to tehran. president biden is committed to

achieving a diplomatic outcome. hong kong employees early morning trading and the stock market is opening as a storm bears down on china. storm warnings will remain in place. if the warning stays after 9:00 a.m. the morning session will be canceled. global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. heidi: qantas full year's earnings are coming in, a loss of $1.86 billion, slightly over expectations. more or less in line with expectations, the full year net loss coming in, that is better than expectations of 884 million

dollars -- 8.8 $4 billion. a little bit higher than expectations, we will be watching for commentary around the starting constraints which will lead to huge amount of disruptions and delays across international lines. stay with us, we are breaking down this with a chief market strategist. you are watching out of hong kong, sherry? shery: we will discuss the outlook ahead of jackson hole with a major economist, watching for a slowdown in market electronic orders. this is bloomberg.

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uncertainty. there can always be a new anticipated shock that pushes us up or down. the way that the ukrainian goes can have a big impact. >> that is why i think we need more of a gradual, do not shake

expectations too much. >> there is a risk that the central banks race interest rate too fast. >> fiscal policy worldwide is on average much too expansionary, we could have no recession because we failed to succeed in bringing inflation down. heidi: nobel laureates speaking about their expectations for the economy. our next guest thinks that jiabao can keep their open at jackson hole. we have the ceo of pepper international. you are maintaining this balance strategy. you are managing expectations going into the key speech this week? >> i think that powell has been in a good position.

he can sound reasonable enough to keep the goals happy as well. i am pointing to the data and saying he will follow the data, that gives him options. i think there is a reason why the market is a little bit more optimistic now. the russian situation, they are not doing as well as everybody thought. that is good for the result in the west. the decline in the states brings us into the global fold and shows we are serious about the climate and that is another positive. i am very pleased with that. 2 how are you --shery: how are you investing around these themes? >> there are some really great opportunities, look at the

variety of etf that covers climate change. look at qcln, there is a great way to get broad exposure to what is happening with this new evolution. if you think about the war, one of the things that is proven is oil is a major weapon of war. russia does not need to get caught in some sort of proxy fight over getting energy with another country. long-term clean energy. shery: the geopolitical tensions over taiwan, really make a difference when it comes to the related shares? >> defense unfortunately is going to be a key point, radeon

is a fantastic company making plenty of the advanced weaponry systems being used in ukraine against russia. that is a great place you can play, you can focus on defense as well but helping a long-term. cyber security and cyber defense will continue to go very well over the next few years long-term. shery: we are seeing a lot of action coming from washington, you mention the climate bill and we have president biden announcing that sweeping package of student debt relief. even progressive praised -- progressives praised this despite wanting higher forgiveness. while this make a better -- in the economy in terms of consumption? >> this allows them to say for a

new home, go out and spend money or save for the future. it will have a broad simulating effect and may have an effect on the midterm elections. that will be something that makes the young people smile, that their student loans have gone down. both economically and politically it was a movie will see rippling through the economy in a positive way. shery: always good catching up with you. you can get around up all of the stories you need to know to get your day going in today's addition of daybreak. you can customize your settings so that you only get the news on the assets you care about. this is bloomberg. ♪

heidi: here is a quick check of the latest business flash headlines. nvidia gave lackluster reports. the chipmaker sees a revenue of 3.9 billion dollars below the average estimate of 6.9 2 billion. shery: zoom revealed how it identifies spam accounts. a query to twitter ceo requested more information about how it calculates annual report figures. twitter says its methodology was already disclosed. private equity firms are said to be among bidders to buy a data company, they have been selected for the next round of bidding. there could be due diligence ahead of a deadline for binding

offers. take a look at the day ahead for australia and new zealand as more earnings from the companies including more details and qantas and australia's carrier posting a pretax loss of one billion aussie dollars. in terms of volume unexpectedly dipping last quarter, we get a read on his brilliant retail sales later in june, an increase of the slowest pace this year. a ceo is joining us at 120 time p.m. in sydney -- shery: take a a

gloomy picture of hong kong, the

skyline is a little bit foggy. we are seeing storm warnings, we are hearing from authorities they will consider lowering the storm warning signal between 9:00 a.m. and 11:00 a.m., so far, the trading session has been delayed. it is unlikely that securities are trading including the hong kong china stock connect. we watch the latest developments. heidi: qantas as announced a four year loss, it has been struggling to ramp up capacity with pandemic restrictions starting to ease. we are joined for a closer look. a lot of the problems are systemic throughout the entire travel industry. specific to qantas, these are actually worse. >> cancellation, on-time, they have been getting worse from their competitors.

this is an issue. the impact financially of covid-19 has been staggering. fuel costs have more than doubled, there is no dividend that there will be a buyback of 400 million. the handful of times that the as x is noting customer satisfaction. sick leave coincided with the flu season in australia and that made things difficult in operational terms. a tremendous amount of criticism during the past 12 months as well from within his own staff and customers as well to the point of having his house pounded with eggs. shery: qantas is reaching out to customers to apologize. when are we going to see things improving at the airline? >> things are improving, if we

are to believe their versions of event -- their version of events. cancellations, lost bags, these metrics did not improve in the month of august and they have recruited 1500 employees in operational roles and we can see them drafting staff to help with jobs like baggage handling. they have temporarily increased the number of employees on reserve. and recognizes it has a problem, the question is if these measures are enough to address the shortcomings. in the background, industrial action is bubbling away, they are launching a symbolic one minute long strike. the threat being fairly explicit that if they do not get an improvement in conditions of pay, that could be another problem on the horizon.

there optimistic about chances of recovery, there are two cells on the airline right now. >> china is planning new measures to stabilize a growth as the economic recovery slows admit covid lockdown's and the property sector crisis. has a policy package could be economic operations within a reasonable range. $43 billion for the policy and financial tools. president biden has announced a package of student debt relief that gives $20,000 in loans for some recipients. borrowers would be allowed to cap repayments at 5% of their monthly income. >> an entire generation is saddled with an exchange -- with debt.

the burden is so heavy that even if you graduate you may not have access to the life that a college degree was provided. >> the decline in the economy is adapting to the war in you, increased mining and oil output has boosted performance, sectors like for muscle a rebound thanks to an exodus of foreign competitors. blackrock and other financial firms are boycotting feel so fuel sector -- the fossil fuel sector. this is avoiding banks, it is unclear. internet researchers say a covert online information campaign to cast the u.s. in a

positive light has been disrupted by meta platforms and twitter. is is it promotes pro-u.s. stories and negative narratives about russia and other countries. the campaign resembles previous campaigns by u.s. adversaries. global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. shery: business activity across parts of asia fell in august at our next guest says the key indicator is a slide in global new orders for asian electronics. fred joins us in our new york studio. it is so good to see you in person! >> after three years! shery: it is such an important day as well because you are talking about electronics orders falling globally when we have the bank of korea's figure and nvidia falling because of a

slump in pc demand. how big of a deal is this? economies depend on these orders. >> a huge challenge, i want is in there, japan, critical to the semiconductor supply chains. you see the semiconductor orders for korea sliding. industrial demand is breaking away. we had a slide in consumer electronics, working from home boost has faded. the industrial demand is starting to buckle as well. that will hurt when it comes to the electronics sector across the region. shery: they feel they need to move because of inflationary pressures. you do not think it will be investigate when it comes to the region itself? >> at the end of the tightening cycle, domestically korea has a the opening about services demand, it is very strong.

ultimately the korean economy is dependent on external demand. the age old story, one of the most sensitive economies to. a dual trade cycle. it is not going to be a bumpy ride when it comes to exports. heidi: may be understating the situation, we get a multipoint faceted approach to prop up the economy from the state council. is it enough to gain traction given what we know about covid zero? the issues of structural or sectors that will not change that -- that will not change anytime soon? >> will in turn the dial? probably not. the effect to restore confidence in the sector, we need something bigger here to revive, you also

have zero covid and as long as you have that handbrake on the zero covid, and is trying to drive a sports car and you have the handbrake engaged as well, you do not get the traction you want. and as a stabilization of the property market, it is going sideways more than upwards in terms of economic growth. heidi: there are questions if they are going back to being productive. is it going to be expected if they do more? you know you can hardly see anyone you look at the week's pick up for a loan demand. >> they want to avoid a reflation, over inflation of the chinese real estate market. battling terrain a the exuberant -- battling to reign in the

exuberant balancing. we will see continued gradual growth throughout the v-shaped recovery. keep an eye on the debt levels and avoid the big reflation. for the time being, this is as good as it gets for chinese economic growth. shery: the pboc is tightening. we have a blatantly easing -- a slow hiking we are seeing from the likes of thailand. the governor, take a listen to what he has to say. >> we do not see the need to undertake aggressive rate hikes at each meeting because of the economic situations in thailand are different than industrial countries. we will be data driven.

shery: they did not want to move and they did a little bit earlier this month by 25 basis points. this is not moving as fast, there is a bigger microeconomic application of that when it comes to capital flows and the pressure on their current test currencies as well -- pressure on their currencies as well. >> and divergence in monetary policy, pboc is easing, other central banks are signaling like thailand that they will not slam the brakes. indonesia hike rates, 25 basis point move, they were not -- may not get to the interest-rate levels even though other countries are will pass that level at this point in time. heidi: a nobel laureate talking

about the economy on a week like this, the risk of these aggressive great cycles is counterproductive. it is detrimental to the investment that you need to solve the supply-side problem. >> when he speaks, one listens. if you hike interest rates too much, you expand supply and get inflation back down. we do have an excessive demand problem. interest rate hikes is still justified here, not everywhere, certainly industrialized markets where you really see the demand exceeds supply. in the short term you have to control demand. supply response is not going to be as quick as you would like. respectfully, probably, a bit more interest rate tightening

may do the trick to rein in inflation. shery: good to see you in person. you are in new york out of all places! he is a chief economist at hsbc. who will be at jackson hole for the speech and interviews with the fed presidents from philadelphia, st. louis, and atlanta. heidi: jp morgan's warning about the ripple effects of a fed qt program. let us bring in annabelle for morning calls. annabelle: we have two big movers, jp morgan cio's says -- cio says spreads are looking too expensive. they are not reflecting precision risks. the other big interview with michael wilson says he is

concerned about the outlook. the fed is tightening into a recession. saying that the idea of the fed being at the end of its pivot cycle is not the case. take a listen. >> we have a negative payroll data because household data is already negative. they only start slashing rates. has a problem with that narrative is that it is not going to be good for earnings and it will not be good for stock prices. annabelle: equities have stuck in that fielding range, michael wilson also telling us that anyone calling above that irresponsible. shery: we are hearing a call from invesco warning about the outlook for oil and food as well? annabelle: essentially what invesco is saying that anyone

who is hoping for oil and food prices to stabilize so they can go up instead in the near term, there were a few reasons for that. oil is waiting at the end of spr release in october. the slow on effects from the gas prices in europe could also pressure what is a volatile market. the war in a great and the effect it is having on food supply and the drought. it is quite interesting those moves, we did see commodities dropping off from their eyes at the start of the ukraine war. that is starting to decline again. invesco says that is where we are heading. anyone saying that they will see a stabilization are not reading the risks. heidi: one of the world's's carbon emissions polluters is

finally turning green. this is bloomberg. ♪

annabelle: we are getting second-quarter retail sales excluding a fall, a recovery of

1.7%. we saw decline of have a percent there as well. -- .5% there as well. we will be speaking to the fed governor at jackson hole for his comments on how resilient the new zealand economy is given that has been at the forefront of the aggressive rate moves of central banks. we are also getting south32 when it comes to the four year net income, underlying profit at $2.6 billion. that is more than expectations, we are also seeing numbers including a final dividend of $.14 being announced. even a margin of 47.1%. they are developing further a the motor -- in the co

al, we see a broader shift. 17 buys and no cells on the bloomberg. we are getting more on the result, -- shery: chinese nickel producer is speaking to rein in up to $1 million, and overcome the biggest producer of battery material products in hong kong. goldman sachs is reconsidering how to launch his delight online

checking accounts. this is as the senior executives deal with cost overruns goldman leaders have been weighing whether to shelve it until next year. that would steer the firm from spending a big on marketing where the online platform has seen losses. australia has been one of the world's's biggest carbon polluters, could they be getting serious about global warming? looking for ways to capitalize on the transformation, i have a reporter joining us for more. we heard from a south32, we see this brought a shift -- this brought a shift towards renewable energy in australia. >> this is after 10 years of policy deadlock. one of the biggest drivers of

what that is, we saw a lot of major climate disasters, we had the bushfires in 2019 and 2020 and this year we have seen a lot of flooding in the eastern seaboard. back-to-back floods in some communities. that real people into thinking about what we need to do to prevent these events from happening. we have the election which was widely seen as a referendum on climate change. we saw a new prime minister before the number of green party lawmakers in parliament, independent lawmakers campaigned along climate lines. that drove a lot of energy. shery: australia is still a latecomer? they have been addicted to fossil fuels for the longest time.

when it comes to exports. what is the likelihood of australia becoming a superpower in renewables? >> to be fair, we are still exporting a huge amounts of coal and oil. our trade is at record highs for those fossil exports. there is a desire i guess and there is a lot of money that has been flowing into renewables right now. billions of dollars have been committed from mining and technology billionaires, government issued interventions. australia has everything that one needs. it has a vast land resources, it has a sun and water and it is getting the funding as well. heidi: what does australia have to do to capitalize on this growing demand for renewable energy?

really trying to get their hands on these future facing assets at the moment. >> a lot of the things on paper right now, their ambitions of what we do by 2024 or by 2040, i think because like sherry said, australia has been a laggard how everybody has moved on already great australia needs to move at scale and i was talking to a hydrogen producer -- professor in queensland and he said australia has the potential to be the equivalent of saudi arabia in clean energy. we have that. or getting the funding now finally. we have the win from government as well. we can move at scale. heidi: the latest on australia's renewable sector. we see a huge rain hit wall

street. about the industry -- an industry known for their confidentiality, there working at these companies. let us bring in our finance reporter, this is something i am not going to understand because i do not post my life on social media. this is about a sector that is one of the most confidential out there. people walk you out of the company when you leave. how does this play out in the industry? >> if you want to look at a story that shows the generational divide by out on wall street this is it. you have a lot of younger entry-level analysts even interns who will forget or not working in the office during the pandemic. in recent months they started to go back into the office. they have been posting these day in the life videos which are basically videos of actual details about what committing to

work is like, what you wear to the office, it also has details about working hours which is a sensitive topic for wall street. what is happening here is something that is natural to the way that gen z communicates something that banks cannot seem to warm up to. heidi: we have seen wall street banks try to show their are lower to young talent given the labor crunch, embracing this influencer culture, or are they trying to shut it down? >> these videos often go viral and they are able to reach young employees where they spend most of their time which is tiktok. throughout the pandemic we have seen banks struggle to retain and recruit young workers. this is the best marketing tool for them. this is a very confidential industry, an school industry.

anything that is information that is not supposed to be out there is scrutinized. filming the trading floor is a big know or filming any screens that offer details about clients that are confidential, those are things a lot of entry-level analysts and interns should not be disclosing on tiktok. shery: fascinating story. good to have you with us. the culture clash in wall street. we are watching futures, muted in the asian sector. this is ahead of jackson hole. daybreak asia is next. this is bloomberg. ♪

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