kathleen: you are washing

daybreak asia. haidi: we are counting down to asia's major market open. stability and risk assets after a rough wall street session. markets understand the threat is serious about pricing inflation. earnings rebounding after consumer demand and the eu plans of measures to dampen soaring power costs and is inflation concerns. kathleen: it looks like we are getting stability in the u.s. industry market after a selloff when jerome powell went into a hawkish speech. we are seeing a small rise in the s&p 500 and nasdaq futures. one of the thoughts coming out of this trading day was maybe we have heard the worst and things

will not get better in terms of the dovish red. where the fed is actually out, as it was said we were happy to see this happen. they are happy, may the stock market is happy, bond features and moving a little higher in yields. 311, 2 year hanging around 233. crude oil is interesting, a little bit weaker, it closed around $97 a barrel. libyan production could be cut. the dollar is up fractionally. it is very close to the record high it hit in july. haidi: taking a look at the trading day in asia because we have futures pointing a little bit higher for australia and sydney. the question going into the day is extending from jerome powell's comments at jackson

hole. trading higher. as it these comments from powell are the latest headwinds facing investors, the balance sheet rolloff picks up this week. chinese economic woes are in going -- ongoing. the euro zone gas crisis. we see that reflected in bitcoin trading. investors are unwilling to take any big risks. goldman sachs says this tightening pain is the dollar's gain. the ozzie is weaker. there is a debate on where we go from here right some strategists saying that we could reach the 1.40 level. not much on the comments, they expect the yen tuesday. this led to a repricing in

treasuries and we see the biggest moves in the shorter duration. kathleen: let us bring in our chief rates correspondent garfield. our chief correspondent steven engle. your market reaction from jackson hole including treasuries, things are steady, is the work behind the market? >> i think the market has gotten a little bit exhausted and hoping the fed is happy that the beatings will end for the moment. there are a couple of goods coming up, we have the month end due tomorrow, there may be some rebalancing given the extreme selloff we have had. there is the bond space, a shift in the duration that investors need. that may be helping longer and bank bonds into bonds.

what is a payroll going to be? powell underscored that the jobs report will be crucial and the following cpi data because they are the areas that are data dependent. friday's payroll and next week's cpi will be crucial. if jobs start to show some signs that have of the market that have been signaling for the fed it is going to hot, too far, that might actually have bad news be good news for markets. if we have another strong jobs report, that is a case for 75 basis points. you may even get a little bit of pricing for more than that in the market and you will get a renewed selloff across bonds and

stocks. the concern that the fed has been given the total to go as high as it likes. haidi: the markets are desperate for any positive news when it concert the chinese consumer -- when it concerns the chinese consumer? >> june was a good number or a good month for the consumer. pent up demand following the shanghai lockdowns. july is a different story. july falls into the first-half result. that is what we saw. the results were bigger than -- better-than-expected and the stock surged. up as much as 25%. it closed up 14 .7%. the stock is up to 44% in the last six months. there is pent-up demand, the

tech space with the troubles of alibaba and others, they're looking at companies who can break free from this year-long slump in chinese debt. not saying that this company is going to do that, but the company says they are seeing a recovery in consumer demand in china and that is the key indicator. june, retail sales were up, july, there were below expectations. we have to see going into the third quarter if they can keep this momentum going up. they have raised this to a buy with a price target of 93. it is now 66, another 41% on top of the 41% is days over the next six sessions. i want to go to the banking sector. that has been the most exposure to the property sector. we have a small gain in profits, the nonperforming loan ratio grew to nearly 4%. essentially facing 178 million

dollars from boycotts on unprivileged -- unfinished projects. the banks are the biggest sector exposed to the property space. also posting a big drop in -- losses compared to profits a year ago. kathleen: i never bought baidu, had i had the potential, maybe i will. what good news and you give me about that? >> good news and bad news. baidu can probably get some guidance saying june was a good month. going forward, it may be facing some similar pains like what we have seen with alibaba. expect it to post its first negative sales growth.

sales fell. double negatives there. the covid zero restrictions really hurting. they will likely give some guidance on june looking good, credit suisse among others have trimmed its full-year etf for 2022 by 43%, expecting a bumpy recovery ahead. then again, made one -- the food delivery giant, the stock was up 4% after its result. they are raising price targets and the expect has recovery to continue into the second half, posted better than expected results. which tech do you believe will separate itself? haidi: this will be picking and choosing going into the start of trading. what would they be watching? >> china has a focus on we are

waiting to see if they can stabilize their economy, let alone to get into turnaround with everything going on. i think we are also going to be very much on watch to see what the dollar does it does -- what the dollar does. it comes to a temporary resting place, the jackson hole sword that took the bloomberg dollar index close to a record high and sent the yen 140, the yuan went 6.9. a lot of fragile currencies. there will weigh heavily on asset markets across the region. we get some stability in the space, you can start the investors finding their way in this new realization that the

fed will be more hawkish for longer than they had thought. the noise will calm down, you can see investors take the chance to pick and choose assets they think may be worth holding over the longer term. haidi: let us get to the first word headlines. >> an american firm also a record low following the china business council, the results is due to the covid zero policies in china to cause companies to cancel or delay products. geopolitical tensions were also seen as a major talent. the u.k.'s chancellor tells bloomberg he is helping businesses with soaring energy bills.

he says he is preparing for action once the new prime minister is announced next week. >> we can do more because by a december, january, those bills will go up a third. i am preparing options for the new incoming prime minister to be able to do even more. >> the european union is stepping into its energy market, short-term intervention will dampen power costs. they seek to lower gas and electricity prices. increase the economic incentives for those suffering from the pandemic >>. >>we have to reform the electricity market. many of you know that there are different sources of energy, the gas dominates and marks the price. or these exorbitantly high gas prices we have to decouple --

because of these exorbitantly high gas prices we have to decouple. >> political turmoil and deadly flooding in the nation, pakistan is taking advantage of special drilling rights. 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. kathleen: an outlook on a foreign exchange market and bullish on the buy and the singapore dollar. objects and hope it continues as markets rattled by the rates the message, argus argues that inflation will not come down until geopolitical crises are resolved. this is bloomberg. ♪

>> responsibility it will require a restrictive stance for some time. >> increasingly vulnerable 5% like chairman powell issued. >> inflation is likely to be

high for a while. >> our mandate is a price stability and we will work accordingly. >> we are in a better position, we hope that there will be another capital rate hike. >> we are taking forceful and rapid steps. we will keep at it until our job is done. >> fighting uphill with friction in the global system. haidi: some of the top economic voices. a global strategist, michael, great to have you with us. you talk about relief that sustained higher rates are going to be required and we are not quite sure whether that was addressed at jackson hole. you say that you need a lot more than just higher rates to be able to address structural inflation. should jerome powell have talked

about that given it is -- there is only so much of that a policy framework and actually address? >> it is the fundamental driver of what is going on. this is a central bank which is talking about climate and social justice. hopefully, they have been talking about it endlessly. it is an important issue. they talk about them, monetary policy can do nothing for either. we have an issue that keeps inflation high for years and years and it has forced them to humiliating lee to a complete u-turn to raise rates more aggressively than they had for decades. they do not want to talk about white. it is intellectually dishonest. not to let us know why. haidi: what we see in terms of the market reaction?

we see these selloffs being extended. the start of another ramp up with tightening to begin in september as well. it does feel like the markets have learned a lesson or you are being fairly critical about the way that market participants have chosen to interpret guidance like this. >> i think there are a lot more lessons to be learned. the only market that could price things in is the fx market which is the last of the dollars getting stronger. maybe it will come back down again and it keeps going up. what happens in crises like we are seeing in the moment? we are still a long way from that for now. if you look at the effects market and equity market, has there been any surprised by what has been said? there was a delusion that we are

still in the same structural playbook, one day after another. the range market is seeing that deals go higher but the long end is quite begrudging because they think they will get more immersion out of this. that implies they think that rates will come down again at some point, they have to. as a fed is indicating that they will stay there and stay there. looking back, you tell me how we fix that. you tell me how we fix that? kathleen: your point is taken. i think the point of the speech was communication. the fed is not sure how they have to keep the rate high. it was an interview in san francisco, why do people look at this hump that will stay there? it will go up and it could come

down. it will go up and stay up. what does it mean for markets? especially those that are supportive of the dollar? >> that is negative equities into bonds. negative about everything. it depends on what level we get up to before we pause. on how long it takes before the market realizes that as our structural new normal. we are not going to see what we have seen for the past couple of decades which is great and go back down again. an even lower low. i think, i fear we have moved away from it. kathleen: in terms of asian economies and currencies, and a lot of conversation in jackson hole, i think being written about now is the fed raising rates. the different patients, -- the

countries and their currencies? >> you are seeing downward pressure across the fx spectrum. i do not see a reason why that would change. what is even worse is the supply backdrop which we are still not discussing which even here we are still not talking about the specifics. the elephant in the room. equity price marked higher. if you are an asian importer you need to buy commodities at a higher price with u.s. dollars which is more expensive. it is an absolute triple whammy for them. kathleen: do white very much for joining us. -- thank you very much for joining us. this is daybreak asia. this is bloomberg. ♪

haidi: singapore is overhauling its visa rules to attract foreign workers in a labor market that has been attributed -- that has contributed to her weight and price pressures. talk us through the key changes? >> the top 5% of employment passholders, those who are more than $30,000 a month and that is about 21 point $5,000 in u.s.. for those foreign talents, they are given a five-year pass to work for more than just one company and their dependents can find work as well. they were given 3-5-year passes-to-three year passes.

bear in mind a huge change. the other big change is come september of next year, the top 10% of employment drops will not have to be advertised among the locals. they can be given to foreign talents straightaway. this has to do with the talent crunch in the cities. it wants to send out a clear message, singapore remains open to top talent. there has been a lot of discrepancies on the ground saying that singapore has done a turn around and this is a way of telling foreigners and singapore is open. kathleen: big cities need to attract some of the top talent. will it over holding what -- will it overhaul the new plans? >> bear in mind that those in

countries like the u.k., uae, even thailand are doing a lot to attract foreign talent. take talent for instance, it is allowing -- take thailand for instance, they are allowing people to come in without employment guaranteed. singapore needs to do more and bear in mind it is not just certain sectors like technology and sciences, it is hospitality, construction, or the crunch is great and it is impacting singapore's economy. these problems are not solved pretty soon, singapore's cpi will surge even higher. kathleen: let us take a look at the bond market, let us start with treasury futures. we have a small increase in

yields, a drop in price. not very much, the 10-year yield is looking like it is moving downward, the price is moving up a bit. new zealand is a functionally moving. the japanese jgp is moving a little in the other direction. we will see how the japanese job data comes out, we watch how the equity trade goes from there. we have the fx outlook with standard chartered which is nourished on three currencies. stay tuned to see which ones they are. this is bloomberg. ♪ ♪ (announcer) enough with the calorie counting, carb cutting, diet fatigue, and stress. just taking one golo release capsule with three balanced meals a day has been clinically proven to repair metabolism, optimize insulin levels, and balance the hormones that make weight loss easy. release works with your body, not against it,

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haidi: we do have the latest

market indications coming out of july. a little bit of a move higher. the jobless rate remains steady at 2.6%, that in line with expectations. we were expecting weaker conditions for the month of july. we also saw a slowed export demand. that likely limited hiring across the manufacturing sectors. there is that diversion started being seen, and we saw that in the pmi's survey, ticking up in serve -- services. marking conditions expected to weaken going into august. haslinda, this is unlikely to prove anything of the reflationary power kuroda will want to see. it is pretty consistent with what the output gap is looking like. haslinda: good point. it is something governor kuroda and his team watch closely.

on the other hand, a 2.6% jobless rate, and the yen pushing up against the 140 level for the dollar, but strategists are mixed on the japanese near fortunes. joining us is an asian affect strategist at standard chartered. what are traders waiting for to say, do we push the $140-yen, or is it a stasis period where there is not enough reason to sell it or buy it? >> look, i think the issue with the yen is quite clear. markets have talked about it for a long time. we are taking a slightly different view here. our view is that it is driven by

real yield differentials. we believe long-term yields in the u.s. have already peaked with the 10-year just shy of 3.5%. with that view, we think there is probably more downside for dollar-yen over the next few months. tactically, as we get closer to 140, we look to get into bullish yen positions. kathleen: why do you think yield differential has peaked? that is a pretty powerful point. >> we are much more bearish on global growth and u.s. growth. we are looking for a recession starting both in the euro area and the u.s. by the fourth quarter of this year. if we are right on the recession call, i think that would mean that the limit for the fed is going to be limited. we might see a couple more rate hikes, but they will not push

rates higher than what markets are pricing in now. as recession fears grow, it will lead to a safe haven play. haidi: what does it take for the u.s. dollar trajectory then? >> i think the u.s. dollar still looks very strong. the dollar is deriving support from multiple sources. you have the interest rate differential support. you've got 3.5%. that is very attractive. it becomes difficult for investors to hold anything else but the dollar. that is the feedback we are hearing from corporations across the region a. the u.s. dollar is much more resilient to higher energy prices unlike the euro and yen, and recession fears mean that the countercyclical yields of

the dollar will perhaps get enhanced. we will see some safe haven bid for the dollar as we go into a recession a. i think the dollar will remain quite resilient more broadly. haidi: when it comes to emerging markets, the yuan is seeing its own pressures, but do you see a seven handle on that depending on what the pboc does or doesn't do? what about the rest of emerging fx in asia? >> for the yuan, we see more upside for dollar-china and the third quarter. i think it is a composition of structural, seasonal changes. on the structural side, growth. we know some of it is because of the zero covid strategy, but some of the elements of the growth slowdown in china can be traced to structural factors.

the monetary policy divergence, the imf rate cut versus what the fed has been doing, that is leading to some capital outflow from china. we are in the midst of a dividend outflow from china, and we think that will continue through the end of september. more pain for the renminbi. seven looks quite likely at this point, but we still expect some recovery in the renminbi. kathleen: i love one of your headlines, "asian foreign-exchange: out of the frying pan and into the fire." there was a lot of discussion about that with the dollar strength, even if it doesn't move higher, it is still putting pressure on currencies. who is most vulnerable? >> i think asia overall looks

quite vulnerable. the hawkish fed and external demand is negative, but i will make a couple more points. going into a more challenging period, rates look quite low. it is at the lowest level since the global financial crisis. if you look at reserves, for asia overall, that is at the lowest level since the global financial crisis. at the same time, the affects policy for central banks, which so far has been to focus on inflation, which is why central banks have been happy to sell dollars, that will change as external demand slows down and the export demand picture looks more challenging.

we will start focusing on export competitiveness. overall, it still looks like a challenging picture for asia for us. haidi: it's great to have you with us. let's get a look at how it is setting up for this tuesday session. >> looking at what the guest was just saying about the direction for the yen, we might not see it hitting that 140 level. it is interesting because the yen weakness has been one of the biggest rises. we are on track for japanese stocks to end the month with the seventh straight month of gains in the quarter. the outperformance takes us to levels we haven't seen since 2013, and some strategists say overall the outlook is bright. we can expect some level of contraction given the comments from powell, but overall,

valuations are looking cheap. there are strategists saying something quite different. they are saying a bear market is all but unavoidable for japanese stocks. they are expecting the nikkei to drop 15%. the reason for that is we will see with powell's comments this shift towards more dovish buys coming back into the market. because of that, we will see a growth -- a rotation from growth to value. haidi: let's get you to vonnie quinn with the first word headlines. vonnie: u.s. justice department said it has already seen documents seized from donald trump's home. that casts doubt on trump's

lawsuit seeking a third party review. authorities say a limited set may contain privileged information. trump sued to seek a new review by a so-called special master. nasa has delayed the debut of its moon rocket due to a problem with one of its engines. the next opportunity to try again is this friday, but no decision has been made about rescheduling. >> this is a brand-new rocket. it is not going to fly until it is ready. there are millions of components of this rocket and its systems, and needless to say, the complexity is daunting when you bring it all the focus of a countdown. vonnie: flooding in pakistan has killed at least 1000 people

since june and cost more than $10 billion with of damage. the country has been hit with its highest rainfall in more than 30 years after a period of intense heat. 30 million people have been affected. for the first time, the navy has been deployed to help. the government says it is a time of catastrophe. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. kathleen: the european union is preparing emergency action to take control of electricity prices that have soared nearly tenfold in a year. su keenan joins us with more. this is such a critical cost. they will tough -- face a very tough winter. how will they do it? su: their goal is to break the link. eu president ursula von der leyen said it is urgent that they will develop an instrument that keeps electricity prices or gas prices from dominating

electricity prices. let's draw into the bloomberg to see what the urgency looks like. gas prices soared tenfold. it has dramatically increased the burden on european households that are still recovering from the pandemic. what the eu is trying to do is to intervene and halt the price rise which they see as being driven by nervousness and market speculation the. you are seeing natural gas prices that have come down, plunging the most since march after germany said it's gas was filling up faster than planned. futures dropped by 21%, which reversed last week's jump. you can see that huge run-up in prices. earlier, the eu appeared to be considering the option of capping gas prices if russia limits, worst case scenario cuts off the flow of gas.

right now, there is a maintenance plan on the nord stream pipeline that has been off for a couple of days, but what if it goes longer? that is causing speculation and panic, all of this putting pressure on eu leaders to act quickly. haidi: crude prices rebounding to the highest in a month. what is the longer-term outlook now that we are seeing a third straight monthly loss? su: gas prices came down to. goldman sachs said now is the time, forget about the recession, by some commodities. a little bit in the red in the latest session, but it closed close to $97 in new york, and this is coming as fears of production outages in bolivia could exacerbate the energy

crunch we are seeing in europe. a longer-term, we have seen prices come down from the dramatic run up in the beginning of the year. the safe trade, one veteran analyst says, is to bet that the market is tight. we have opec-plus meeting in the first week of september. it is expected it will be the first time that they cut output. the iran nuclear deal's thought about putting more oil on the market, but that looks like it might not happen at the earliest until september or mid september. a lot of crosscurrents. goldman sachs says they could use this opportunity as a pullback and make some long-term investments that could pay off. kathleen: every cloud has a silver lining. thank you so much, bloomberg's su keenan. thank you. south east asia's electric

vehicle sales grew 31% last year. they are expected to grow more this year. a closer look at the clean energy transition coming up. this is bloomberg. ♪

haidi: record output, shooting the ev maker out of

supply chain pain. the uid says sales are growing. to southeast asia where ev sales grew by over 30% in 2021 and are set to grow faster this year. governments across the region are offering new incentives and setting deployment targets. which markets are currently leading when it comes to the ev adoption and take up across southeast asia? >> markets are -- thailand and singapore are the leading markets when it comes to electronic vehicle adoption. in 2021, about 2.5% of all new

cars soared -- sold in thailand and 5% of all new cars sold in singapore were either battery-powered or a plug-in hybrid. in june, the share of carbon-powered vehicle sales -- in 20 22, we are seeing markets like vietnam. the local automaker is accelerating the delivery of models to the market. these three markets lead when it comes to electric vehicle adoption in the passenger sector. the primary mode of transport in

southeast asia, we can see vietnam leading in ev adoption the. in 2021, we estimate 11% of all two wheelers sold in vietnam were electric compared to less than 1% in markets like thailand. haidi: in indonesia and thailand, they are large auto manufacturing hubs. are we seeing more local ev and factoring? we want the indonesian president wants indonesia to make teslas. >> these countries have been able to make progress. we estimate that indonesia has been able to sign memorandums of understanding to make investments in the battery manufacturing, ev manufacturing chain of up to $30 million u.s.

since 2018. the government says it is in conversations with a number of players like volkswagen, tesla for further investments. not all of these investments might materialize to the extent that these commitments have been made, but it signals that a lot of international companies are interested in the battery manufacturing aspect, the ev manufacturing in indonesia. in thailand, $3 million of investment commitments have been made for the electrified vehicle manufacturing chain up until the first half of 2022. when it comes to battery sales proposed for the region, by 2025 , there are about 50 gigawatt hours proposed for the region, and about 30 gigawatt hours of that capacity is expected to be in indonesia or thailand. these countries are making

progress when it comes to some of their targets for electric vehicle manufacturing the. kathleen: are these countries on track to meet their decarbonization targets or net zero targets? how close are they? >> unfortunately, that is where the region is still slow. in countries like singapore, vietnam, thailand, their net zero targets, decarbonization targets are not really on track. if you look at the passenger vehicle sector, for countries to reach a 100% zero carbon vehicle goal by 2050 -- if you look at the adoption in our scenario based on current policies, we can see that countries cannot

reach this point. in thailand, only half of passenger cars sold in 2035 are electric, and in indian asia, it's 25%. for segments like trucks, it is a more challenging task. we think governments in the region will have to do more in the short term so that they can make progress to achieve these net zero targets. kathleen: thank you so much. plenty more to come on "daybreak asia." this is bloomberg. ♪

kathleen: a quick check on the latest business flash headlines. a clear succession plan for india's most valuable company. he used his latest address to outline the businesses each of his children will oversee. asia's second richest person is hoping to avoid the succession battle he was plunged into 40 years ago when his father died without a will. peter debt cosan a whistleblower complaint said twitter had deficiencies in its defenses against hackers. the agricultural bank of china says it is facing $160 million in overdue loans.

that is double previous estimates. the beijing-based lenders says the overdue loans are linked to over 1100 projects. a chinese e-commerce giant closed up 15% after beating analyst estimates for revenue and profit. revenue of $5.4 billion in the second quarter was up 36% from a year earlier. it attributed strong results to a recovery in consumer sentiments. haidi: this is what we will be watching when trading opens in australia, japan and korea. sydney reporting first half earnings well above last year, sharply raising its interim dividend. to keita and should nokia may move, japan mulling to

administer the omicron vaccine in september. keep an eye on oil shares, rising to their highest level in more than a month, but the supply-demand dynamic looking murky. coming up in the next hour, we will talk investing strategy. our guest is positive on asia. we will also be going through earnings for china's big banks. our guest is from jeffries. as i mentioned, the market opens in sydney, seoul and tokyo next. this is bloomberg. ♪ it's

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haidi: this is "bloomberg

daybreak: asia." we are counting down to the major market open. what you see is the holdback and heavy selling. >> we are seeing action when it comes to energy markets, also watching for those big chinese banks reporting. and what is the impact would be given the property prices. >> were about 10 seconds away from the open in japan, south korea and australia. also keeping an eye on what happens in the treasury markets, we do have cash trading starting. the question is what moved we will see in the two year this morning. we did see it pulling back off at 2007 high in the previous session. balancing the recession risk against inflation threat.

how that is playing out in the trading space this morning, yen and focuses morning. we've got the yield differential still in play. others inflate, not really a game changer. in terms of stocks, the nikkei coming online, .6% higher subsidy bank saying a bear market is basically unavoidable. they see a 15% drop for this index. with change to korea. tech stocks are front and center this morning. with the decline in the nasdaq in the previous session, the tech heavy index fractionally high. the big item on the agenda today in korea so we will hear the government eight -- cabinet meeting to discuss the 2023 budget proposal.

otherwise we are continuing to keep an eye on what is happening in the fx space this morning. with the dollar giving up a few bits gains. let's look at the open and australia, earnings season is finally drawing to a close. energy one of the highlights today. also keeping an eye on brent crude, we are seeing a lot of consent building on energy security. the aussie dollar just fractions down. haidi: we can see the asian equities investments there, christina woon gives us the idea of how to trade on these markets, we see asia having something of an advantage? christina: yes, we think about the rhetoric that came out of powell's's speech last week.

it's been quite negative. yesterday and last night as well. i think the one saving grace we have in asia is investors have already been quite cautious towards the region as a whole, there's a bit more preventative in valuations in that sense. we have not seen as having a market as we seen in other parts of the world off the back of powell o.a.t.'s speech. -- powell's speech. kathleen: when you look at fundamentals, and we've seen upsides of maybe not as bad as expected, has that given you an opportunity to look for the types of companies and industries that will become more constructive on. christina: yes, i think you're right there. when of the key things this earnings season that we were looking out for from a fundamental perspective, many of these companies would they be

able to hold up against the euro uncertainty? i think that is -- i can give you an example, within ev manufacturers, there is one that has shown surprising returns -- concerns about recessionary issues weighing on and demand. we look at the recent set of results across a supply chain, volumes of held up. prices have been good as well. that is something we remain constructive on going into the future. kathleen: how are you looking at the dollars rise, especially from emerging-market and their economies? christina: when we generally think about a rising dollars of the concern most people have is emerging markets, i think one of

the good things we can fall back on is we look at the recent earnings season, and the kind of quality companies that we seen in spite of difficulties, even on the currency perspectives of many of these companies are producing earnings are holding up well. or the ability to play into structural themes. from a currency perspective, they hold up reasonably well. haidi: i'm surprised how people look at japan. yes it gone through a four periods of they are going to do better, somebody else's they they won't go near japanese equities. christina: that is an interesting comment. we look at how japan has traded this year, it has been extremely volatile. it had quite a few things to deal with.

if you look at fundamentals when it comes to japan, many companies are not just playing into the economy, there big players across the globe. the automakers, have been the beneficiaries of the yen weakness. if you look at the smaller companies, there are many innovative companies the face many of the issues japan has, digitalization, i think something unique to that market. if you dig into what of these opportunities, you will will find some truffles in there. haidi: what about truffles in the chinese market, do you believe the idea that we've seen organizations -- how confident

that we are going to see a stabilization and growth? christina: china, i see that being tricky, i think when it comes to a policy perspective, what we came up just saw coming out last week has been having in the right direction. you can see a commitment from the government to address stabilization of growth. we do have to see how many of these things play out. they've got quite a number of issues to deal with, not just the pandemics about the drop. it has caused more disruption. there's more has to walk through, over the long term, many strong companies as well. the supply chain continues to hold up quite well. kathleen: some very constructive comments there are equities. thank you for joining us, she is

the equities investment director at aberdeen. let's go to vonnie quinn with first word headlines. vonnie: he's looking at additional measures to help with soaring energy bills. the nation is breaking economic headwinds, and they see recession lasting at least a year. >> we know we need to do more. by december, january, into next year, i'm preparing options for the incoming prime minister to be able to do even more. vonnie: pakistan has secured a bailout from the imf, amid political turmoil and deadly flooding threaten the nation's economy. the bonds will be key to

stabilizing the economy. singapore is overhauling -- and tight labor market. foreigners earning more than 21 thousand u.s. dollars a month can get a five-year work pass. the government says they want to cement the position as a hub. 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. haidi: let's take a look at some of the other movements. >> taking a look at what is happening in the ukrainian space, we did have those comments from elon musk, he spoke at a conference in norway, the focus is on how to manage

the ongoing energy crisis, particularly what is going on in europe. elon musk says we need to stick with oil and gas for now. if we have a broad, well-functioning nuclear power plant, do not shut it down yet. on the back of that, we did see ukrainian stop -- uranium stocks going higher. turning our new focus this morning is -- trading up nearly 30%. woodside is australia's largest oil and gas producer. a very good dividends being paid out to shareholders. other energy companies and focus this morning, we are keeping an eye on what's happening in the oil prices. brent crude coming online, softer this morning. checking out to the outlook for coal producers in this region as well, we are focusing in on the

move we had in coffee. we did see a 6% slump in the u.s. session. the fort -- biggest drop in six weeks. the reaction to what we saw in -- supply risks in the market. kathleen: that is quite a tilt to me. stay with us with our comp -- conversation with woodside ceo, coming up around 11:30 u.k. time. haidi: were looking forward to going through those positive numbers we had earlier on. china's property prices, and the earnings later. before that, china's e-commerce giant signaling a rebound in consumer demand. this is bloomberg.

haidi: let's look at some of the early gains across asia section, to stabilizing from the route. trading volumes, we are seeing

energy dominating, gains of more than 3% when it comes to the energy, oil continuing to hold onto the lead, over a month as we continue to watch the supply and demand dynamic. a possible opec-plus cut. we are watching materials as well, we're are seeing some gains from some the other minors as well. look at the nikkei, upsides about .6% of energy continues to be the dominant thing there. kathleen: one of the hottest issues in the world for investors. speaking of impressive results, shares of pinto go soared in new york. for that story and more on the slew of chinese earnings is steve ingalls favorite season, he is our north china asian correspondent. >> who needs winter, fall,

spring. it's earnings season. there's so much to go through. pdd, they'll beat expectations. i thought chinese tech was being beaten down. they did well. let me break pdd first, then we can go to the banking sector. $80 rising, nearly 15% said they were up as much as 25% intraday. the stock is up 44% over the last six sessions. revenue grows 36%, much better than expected. income more than trigger -- more than tripled. the company attributed this to concern -- a recovery in consumer sentiment. june was good for many of these consumption driven companies as pent-up demand following the shanghai lockdown lead to a surge in sales in june. july went down, we have to look

into third quarter, fourth quarter to see the momentum that was gained in the june will translate. they put pdd at eight by writing -- at a buy rating. lots of volume in new york. 50 million shares traded hands within the first couple of hours after getting those results. i said i was going to go to the banks, they are the biggest sector exposed to the property close. a small gain and first-half profits of the big thing is the exposure to the property sector and the nonperforming loans. they reported 1.2 3 billion -- 1.2 3 billion yuan. the npl ratio just tied to the real estate sector rose 4%. the overall npo ratio is 1.14%.

not surprising, these companies and bad debt managers, they have terrible results because of their exposure to the property sector. haidi: what's on top for the rest of today? does it mean we could see more positive results? >> we did get -- make one did well -- meituan did well. byd did better. baidu is out later today, expected to show its first slowing sales growth in a couple of years due to those police disruptions. june might've been good. i'm going to keep saying this, june was good. it is going ahead that we have

to worry about. credit suisse says there's a bumpy recovery i had for baidu. i mention byd, that is the outlier as well in the ev space, it doesn't have factories in shanghai or the surrounding areas the got locked down. they make many of their own supplies. they didn't get the supply chain disruptions, and there was a big surge in sales that they saw. it rose to the top end of guidance, revenues are 66%. record output, record sales. shielded their biggest chipmaker from the pains a lot of other carmakers had. haidi: stephen engle there with a look at earnings. the eu is preparing to intervene in its energy market. we'll get more on that plan to

decouple gas. this is bloomberg. ♪

haidi: the eu is preparing emergency action. we have harsh warning coming. haidi: they've got to do something. the eu present so they have to keep our prices from dominating electricity price, they have to act within days or weeks. that is when they believe they are going to come up with this. you are looking at the target shows you the urgency. the absolute soaring of electricity and power prices fuels inflation and dramatically increases the economic burden on

businesses and households, still recovering from the pandemic. the eu feels compelled to intervene and help the price, not clear how they will do it. expect to come up with something in the next few days and weeks. check out the two week price in europe, they punch the most since march beginning of this week. germany's gas source pulling a faster than plan. the futures, a big ramp up he saw last week of almost 40%. earlier this year is that we reported the eu were considering some kind of option. by putting caps on gas prices. that is if russia significantly cuts off their oil and gas. a squeeze on gas deliveries and powerpoint outages have further stopped supply. he got winter coming on, and the

pressure on to do something quickly. haidi: bloomberg su keenan there. they will meet with secretary jan jan to talk about a joint solution to the cost-of-living crisis. measures are coming to curb soaring energy bills. >> you can use energy, especially gas as a way of getting back at the british people, and germany. through the use of gas supply. that is something -- we after remain vigilant. ukrainian people are facing a tough time, an illegal invasion of their country, so we have to make sure that back home in the

u.k., people have the help they need. at the moment, with 30 million pounds we have put to help people, everybody will get 400 pounds off their energy bill from october to december. that is how to the increase that is come through through the energy price cap. we need more as a by december and january, into next year, those bills will probably go up further. i'm preparing options for the incoming prime minister to get him to do even more. what we want to do is make sure we work together to ensure the markets remain functioning and stable. we've got to make sure we coordinate with our allies. the reason i'm here is to see

secretary ellen, but also the banks, we haven't had a chancellor in new york for a couple of years, it helps us take advantage of the brexit opportunities. the economy is pretty resilient. if you look at where we are, unemployment is at a record low. about 65% of people have a fixed mortgage. >> are you worried about the housing market? >> of course we are. we have a resilient economy, but the same time, but the same time subleasing gas prices increase by 13 full. >> we are now looking at 2000 pounds average for energy bills, going up to 3.5 thousand --

3500. this is still a consumer that is seeing an incredible pimple -- the eu promising emergency aid for you right now. how sure are you you can't -- how frustrated are you now you can announce anything? >> one was to say where are you, we are midway through that. we've got the second, to the 8 million most vulnerable households. if you are a pensioner, you get another 300 pounds. there's a lot to come for those. i instructed my leadership to know -- we need to be able to withstand pressures and message

back to mr. putin that this is not going to work, therefore we have to look at every option. what will we need to do come december and january and into next year? were looking at all the options, nothing is off the table. haidi: u.k. chancellor of the exchequer speaking with bloomberg's caroline. plenty to come on daybreak asia, this is bloomberg. ♪ pst. girl. you can do better. at least with your big-name wireless carrier. with xfinity mobile you can get unlimited for $30 per month on the nation's most reliable 5g network. they can even save you hundreds a year on your wireless bill over t-mobile, at&t, and verizon. wow. i can do better! yes you can! i can do better, too!

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haidi: this is "bloomberg daybreak: asia." 30 minutes into the trading

session for japan, korea and australia, so far moderate gains across the board, being led by what we are singing korea's relative strength, certainly this is all following the ramp we had in -- rout in the previous sessions of jay powell pushing back against expectations for rate cuts. one of the headwinds facing investors here. with that the fed balance sheet runoff, economic growth in china is another headwind, as well as the energy crisis in europe. we are well off moving averages here. this is the projection we had for trading throughout the session. still well below what we have on our 20 baby -- 20 day basis. energy it seeing quite a bit of activity this morning. let's take a look, there's a couple big headlines this morning.

one is concerns around energy supplies, specifically oil, with production issues in libya. otherwise, some pretty solid results. this is the biggest gain or on the index today. overall, we are looking at pretty weak in asia. haidi: let's bring out -- we talk about the subdued nature of some the gains we are saying. how beholden the market is to fed commentary. listen to what the minneapolis fed had to say. >> i see the stock market rally after our last meeting. i know how committed we all are to getting inflation down. i think the markets were misunderstanding that. i saw how fed chair jay powell

jackson hole speech was received. haidi: in terms of the pricing you are seeing across, does this seem like a market that finally gets it right comes to the level of commitment the fed is showing they have? >> probably not fully. it's still a bit further to go in that respect. you're going to get some strange trading today and tomorrow probably. there's always distortions in financial assets because of that. as we get to september, people will begin to realize the fed is serious about this idea of causing a slowdown in order to bring down asset prices, and the equity market would be a prime suspect in that response. one of the places where people get a wake-up call will probably be at the time that fed meeting on the 21st of september.

the chances that dot plots will be increased substantially. at this -- below 4%, we could see a goat way above 4% for 2023. that will give people the chance to realize the fed is going to say higher for longer and what that means is that you're going to have not a question of the rates pausing, when they pause so they will be at a level which people haven't seen for many years. they're still quite a bit more disturbance to come, particularly the energy market. the fed speakers will endorse what powell had to say, there markets the most likely to respond to that on the downside. >> one bonds have their selloff today, had a lot to do with this after the weekend reaction to what ecb officials are

suggesting, which is we are getting aggressive, olli rehn from switzerland central bank seem to be less enthusiastic and open to that. how does that factor in the equation, or bond yields are going? >> the ecb plays a big role from a political part of this point of view in trying to tighten monetary policy. there's a report out that the gas storage situation in europe is much better than expected. there targeting to get supplies up to 80% of the reserve number by november. they practically reached already. the situation of a country like germany is much better going into the winter. if they can control the energy supplies better than expected, that gives the ecb more room to tighten monetary policy. they don't need to be so

concerned that they will be tightening policy into a week economic situation. that helps them in terms of if they want to go 50 basis points at the next meeting, possibly even extend that further. that got more in the way of room to do so. because inflation is still extremely high in europe. now, you could see a picture similar to the fed, where the ecb speakers are pretty hawkish and give themselves the room to push the markets a little lower in anticipation of doing a long period of tightening. they may go higher longer as well, in the same tone the fed has been speaking. kathleen: let's get out of vonnie quinn. vonnie: optimism in china among american firms, the u.s. china's business council.

it has caused more than half of companies to delay investments. flooding in pakistan has killed more than 1000 people, because $10 million of damage. it's the highest rainfall in 30 years. after a period of intense heat. for the first times of the navy is deployed to help. the u.s. justice department said it has over eight seen documents east from former president donald trump's florida home. authorities say a limited set of materials -- may be reviewed by a so-called special master. the latest launch of the moon rocket was scrubbed -- the

earliest opportunity to try again is friday, no decision has been made. it will be the first major flight in nasa's plan, the plaintiff have the first woman on the first woman of color on the moon as early as 2025. >> this is a new rocket. it is not going to fly until it's ready. there are millions of components of this rocket ended systems. needless to say, the complexity is daunting. we need to bring it all into focus of the countdown. vonnie: 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. haidi: coming up, jeffries joining us. this is bloomberg. ♪

haidi: the u.s. china business council suggests american firms optimism about china has fallen to a record low. let's get the details from catherine. how does it look? >> good morning. the study is basically -- shows

that the policy is going to be bad, covid zero trumps that. they've held back the risk. yesterday and today, where big news about small lockdowns and all-around in the beijing area. this is adding to that concern that if covid doesn't go away, people are granted feel differently about doing business on chart. haidi: what about the numbers? >> today is sort of the final day for companies to report. all the numbers look fairly good. particularly intact. however, i think the response in

the equity market was quite surprising, traders chose to look at the downside, the big ev battery maker had a strong beat. traders didn't like the margins in one of the segments. yesterday, they had strong results, but the numbers were flat. overall, people are saying, they're not choosing -- there going to nitpick because there pessimistic. haidi: asian equities. head of the markets opening in hong kong and china. energy chairs there rallying across tokyo and sydney. the highest in just over a month there. were also watching earnings that would been talking about for

mainland cbc, boc, the big lenders expected to report results out today. kathleen: china's biggest banks report earnings this week with investors watching key risks including impact from the property prices and mortgage payment boycott. now we have shujin chen, head of research at jefferies. it's great to have you here. we just heard from the agricultural bank of china, they reported yesterday, 100 $70 million in overdue loans. it is all about the -- $170 million in overdue loans. it is all about the board boycott. do you still have a buyout? how bad is it going to get? shujin: actually we think the abc was not that bad. the india ratio was even lower than at the beginning of the year.

same as the first quarter of the year. we think that from the asset side, it beat expectations. kathleen: you say you don't see the bottom yet, it is starting to form, ecb the -- pretty big losses. there sought there. shujin: actually we think, this year is quite similar to what happened in 2016. at that time, we had the supply side -- including coal mining. and also we expect that the npr ratio are going to increase a lot, which means that china bank assets are always under pressure

the next one to two years. if we ok at, so do we expect in the next one to two years. there will be some volatility. in september to december, we see higher trends for china banks to see a rebound, rather than nazi correction. haidi: what about that? -- what about debt? they been encouraged to turn on long camps where there hasn't been that -- loan caps when there have been that demand. shujin: for the large banks, we see -- if we look at the big four banks, they have lawns

there do, for abc, more than 13% of lung growth year on year. they are still driven by infrastructure projects, which china already invested quite a lot into that sector. but for other banks, they see higher pressure from the retail side. with the mortgage demand and credit, so low. which makes their loan growth quite a lot. kathleen: in terms of the other earnings support coming out this week, who is at the top of your list. you've got three holes in three buys, who is your favorite by uy now and why.

shujin: were looking until the end of the year, we like -- a lot of investors are concerned about their high exposure in mortgage, but if we look at more details, it has relatively low exposure to the risk developers. we checked all the principal banks, this is on all of them. also if we look at mortgage boycott protests, u.s. pc has lower exposure. --gsbc had lower exposure. we think that is on asset

quality, for with vector growth, we think it has a better chance to outperform in the last few months of the year. kathleen: you have a specific way of categorizing npo's, what are we seeing in terms of these other categories? special mentions? shujin: like the npl ratio, we still see higher pressure for these loans, we expect them to increase. they have over eight overdue

long ratio increasing. we expect the pressure will continue in the next year. besides development, we also expect higher npl ratio increasing construction sector. there are also affected by the developers. haidi: deleveraging, one does not become a priority again? shujin: the broader deleveraging haidi:, when did that become a priority again? shujin: the macro side, it is still average. i think china is not proper -- not focused on that at all. china usually, they micro to

leverage only during recovery. from 2020, i think china focused more on its economic growth, rather than deleveraging. it only happened when china's economic growth saw a rally. this year, the focus is on economic growth. for pboc, the guidance, they have been pushing banks to them more. haidi: great to have you with us. head of china fig resource -- research at jefferies. will get in-depth analysis. you can listen in on amps up

radio plus or bloombergradio.com. more ahead, this is bloomberg. ♪

haidi: singapore is overhauling its visa rules. contributing to asian price pressures, let's bring in bloomberg's asia reporter.

we know how reliant the singapore economy is on foreign talent, what are they trying to accomplish here? >> singapore is really trying to recharge and burst out of the game in the reopening. see a lot during this, trying to take advantage of these times, and compete on global labor market worldwide. one official told me yesterday there was a war for global talent. we hear from the very tops of the prime minister talks often about the existential need, to bring in the foreign talent and see those as effects in the local market. there catching up to the likes of dubai, u.k.'s of germany who have rolled out special worker visas. this was a culmination of a year long effort.

it also undid some of the restrictions during the pandemic to more accommodate the local hiring market in rough times. now it went further to allow for special visas, we had a whole table about the different options that provide talent -- that the singapore talent needs and wants. kathleen: is there any on board when it comes to how international business people are responding to this in singapore and the locals? >> big question. it often brings up this debate about how you want to accommodate foreign workers while also making sure the local workers are protected and that that market is fair. these are questions they addressed yesterday in a press briefing. you could tell from the questions from local media as of

that maybe this went too far, gives too much of an advantage to foreign candidates. where's that government, they explained and they use the prime minister's words to say they do believe from the government side that this will have that effect for that economy and local workers. at the same time, what we are hearing so far from foreign ministers is great job. they want certainty, clarity, options, they got all three yesterday with this announcement. kathleen: that was our senior asian economy reporter. let's look at how the asian equity markets are trading, we saw a bounceback in the u.s.. some decent gains. japanese equities up .5%. coffee up .6%.

-- kospi up .6%. look at new zealand,, up .7%. the initial bearish action on powell's hawkish speech it has been absorbed. we have some good results there. coming up, china's group growth should increase in the second half as lockdowns degrees. stay tuned for bloomberg markets: china open. this is bloomberg. ♪

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yvonne: it is