♪ >> good morning and welcome to daybreak australia. i am haidi stroud-watts in

sydney counting down to asia's major market open. kathleen. i'm kathleen hays. janet yellen declares u.s. china ties on a surer footing after her beijing visit saying washington's message has been received on trade and supply chains. >> buying back shares at a steep discount as investors hope that million-dollar fines marked the end of the regulators crackdown on jack ma's company. kathleen: the new zealand and eu sign a new trade deal pledging to meet new green goals. check wall street. down a little bit. the s&p 500 and also the nasdaq after a jobs report left people kind of scratching their heads about a cooling labor market. look at the number of jobs. fewer than expected were created last month. at the same time wages actually rose while unemployment fell. we can see in the futures market the small gains actually are

being indications of very marginal small gains. really unchanged at the open. it is the middle of the summer. trade is a little lighter. it has been for some while. you can see the 10 year showing a 4.06% yield. it was around 4.04% friday. the dollar weaken friday. that gave commodities of boost. the jobs report says may be the fed is closer to a peak. we heard from austan goolsbee president of the chicago fed pride a. he thinks the fed is on a sustainable path to bringing inflation down keeping the door open to more rate hikes and signaling, he thinks, that we are ready to achieve a soft landing. the big number this week will be the consumer price index on wednesday expected to show improvement on the headline. not as much on the core. big numbers on friday. big numbers at this week.

a lot of fed speak coming up for the markets to digest. >> yes. a couple central bank decisions when it comes to asia as well, kathleen, firmly fixed on that. markets in this part of the world. australian futures look like about .4% higher relative to fair value. you could see and airily -- early gain of .2%. or broadly, sustained weakness when it comes to asian stocks after we had wall street closing on the back foot last week. the jobs data kathleen mentioned supporting more than one fed hike to come. the aussie dollar just under 70 u.s. cents at the moment. closing of the love the june 20 six high. when it comes to trading in that kiwi could get messy when it comes to the rbnz decision expected to stand with the economy in recession. the bank said it has tightened enough in its battle against

price pressures. to be ok also likely to hold, maintaining a tight stance with inflation slowing but still well above target. watching dollar-yen into another week off some of the more pressurized levels of the one 40's we have seen potentially getting closer to 145. we might see more intervention. around that is where we are trading. potentially we could see that extension going a little further. finally, watching all markets flashing signs of strength. we saw the marketing impact of a plus -- opec-plus cuts taking hold, some spreads for brent. global inventories expected to shrink over the second half of the year. at the moment seeing brent crude a little softer, just over $78 per barrel. the other key to the broader commodities story is how demand out of china shapes up for the second half. the u.s. treasury secretary janet yellen wrapped up talks

with chinese leaders in beijing saying she believes relations between the two countries are now on surer footing. let's bring in chief north asian correspondent stephen engle in hong kong. covering the trip, what stood out to you? stephen: obviously there was no breakthrough in the deteriorating relations other than putting, perhaps, for the time being, a floor on the deterioration. again, the talks with yellen in beijing over the weekend, friday, saturday, left on sunday were not designed it to have any deliverables really other than to meet with her counterparts, get a rapport, and somehow put some sort of floor on the continuing downward spiral on writer -- of rhetoric on both sides. for that matter, i think it was achieved. one of the main objectives of janet yellen was to clarify again the whole concept of de-risking oh or -- de-risking or instead of decoupling.

china says it's a false narrative and de-risking is essentially the same as decoupling. at the press conference yesterday janet yellen before flying out of beijing expressed her desire to get that message across to beijing. here is what she had to say "it was extremely important for me to address this issue and assure my chinese counterparts that these are by no means the same thing. this is something i am trying to communicate and believe very strongly myself. certainly i think that message was received. steve bannon: -- stephen: she had plenty of opportunities to get the message out to her chinese counterpart. she met with about everybody besides xi jinping. she met with the premier on friday and the new economic czar

, the former in drc chairman, now vice premier. so, they do not really know each other. not like the previous. they had built rapport over the years. a harvard educated english speaker, they got along. also janet yellen met with the pboc and a finance minister. there were over 10 opportunities of what you would call substantive talks friday and saturday to ci to eye on some things while acknowledging that there are differences in others. still, state media in china was pretty harsh on the overall tone of the relationship. beijing daily on friday expressed doubts about some sincerity from washington. every time there emerges some positive signs when the two sides restart dialogue, they are extinguished by washington's suppression and containment of

china in a blink of an eye. that was a commentary, unnamed, written by some unnamed editorialist at the beijing daily. still, there are challenges going forward. keep in mind joe biden is on the cusp of potentially signing a new executive order to limit u.s. investment in what janet yellen overtly explained was targeted areas of national security interests like artificial intelligence, like quantum computing, and, advanced semiconductors. that could be the next bump in the road for u.s./china relations to smooth over. kathleen: they could not have sent a better present than janet yellen to try to smooth things over. she is charming and well-known. it is our chief north asian correspondent stephen engle. now more details on how and plans to -- ant group, the fintech arm of alibaba hit with a nearly $1 billion fine friday

wrapping up more than two bit -- two years of investigations by regulators. annabelle is tracking the latest in hong kong. ant group has a ways to go to shore up investor confidence. annabelle: that's right. it's not just about looking after investors. in china the -- focus needs to be on the company and staff at first. this is about trying to retain top talent at ant group. a big concern for the company trying to refocus on its bottom line and perhaps even look ahead to an ipo. the confidence in the country up -- company as you know has been shattered. when you look at the valuations, this was a company wants a thought or envisioned it to be worth up to $315 billion of head of the dutch ahead of its valuation. today at the near 80 billion mark. 315 billion dollars to $80 billion, that's a huge gap. how do you go towards plugging that? now the company is looking to buy back nearly 8% of outstanding stops.

trying to rebuild confidence in the company. injecting much-needed capital into it. we understand alibaba could be looking to share -- sell shares to ant group, part of a planned buyback now wrapping up a more than two year investigation into the company. haidi: what does this mean for the past two and ipo? will it be enough to win back investors? annabelle: certainly, it seems, at last -- at least the reaction we are getting from analysts at the company is it is one step closer, but not necessarily enough to catalyze a relaunch of the ipo near term. this is something bloomberg intelligence has been looking at. they essentially say a share buyback will not speed up the path to a listing here. they are looking at earnings. 2022 came in around 31 billion you want almost 50 -- yuan almost half of the near 60

billion from 2020. ant group needs time to build out a profit base after the tech crackdown. the $80 billion price tag translates to about 18 times earnings, five times earnings of chinese online lenders and around three times the average of fintech firms they track. they say perhaps the actual valuation of ant group could be lower, only $57 billion. haidi: annabelle droulers in hong kong with the latest on ant group. inflation numbers for june are coming out as trading begins in asia. the fed's next move remains in focus following a one-month selloff that sent a some yields the highest in decades. let's get more with garfield reynolds. after jobs numbers friday, what are you looking for in this week's inflation numbers. garfield: well, i think the

market will be looking for further sustained decline in the pace of inflation. especially, they would hope for signs that services inflation, something that the fed and other central banks have focused very strongly on, that that would come down. even then, it is really hard to see the fed not hiking this month. they have made it very clear that that is the base case. i think they would honestly consider, given also their rhetoric sense the fed minutes came out, they would consider that if they do not hike, they would be sending the wrong signal, to consumers, to investors, to traders. so, it will be far more about what that can do to increase hopes that they will not go again in september. perhaps, they will not even though it all this year.

even now, markets are still expecting just one hike. whereas, the fed said they expected two. i think in a lot of ways you can look past the noise of the monthly change in employment numbers. the number of jobs added. wages picked up. unemployment was down. those two signals that the labor market is robust and inflation, even if it comes in softer than expected, it will still be very relevant -- elevated relative to the fed's target. why would they stop? kathleen: what does this mean? how does it reverberate globally? two central banks in asia are meeting this weekend neither is expected to anything. -- do anything. globally, how will this go? garfield: globally, the situation is very similar.

where the message of central banks is, pause does not mean pivot. pause does not even mean stop, let alone pivot. we had the rba radio hold rates this month. again, they have their own quarterly inflation numbers coming later on in july. those show an extraordinary slowdown i think for the rba to not go again in august. the bank of new zealand, the reserve bank of new zealand is expected to hold, yes, but it is still expecting to hike again at least once in this is -- this cycle despite the technical recession because the labor market is showing too much strength and inflation is too high. there have been a few signs of strains in the credit banking space with these cooperatives that have been wobbling lately. but, they will also be sending the message, that we are not

moving this time, but we remain ready to hike. it is kind of an inverse of the bank of japan. for years we had the bank of japan saying, we remain ready to pursue more extraordinary easing. the measures -- message from central banks other than the bank of japan across the world is weak prepared to do more extraordinary tightening. i think that is the message both the bank of korea and reserve make of new zealand are going to say. stand ready for more tightening. do not go buying bonds with both hands of the way some of you have been doing. be very careful about sending equities to the moon, because none of this settles in with central banks that are still focused, overwhelmingly, on killing inflation on -- and the growth part of their mandate is not at all on the radar now. >> our chief rates correspondent for asia contributor garfield

reynolds. come up -- coming up, a look at new zealand's ambitious free-trade agreement with the eu. slashing tariffs on exports to the block. ahead of that we talk markets tragedy with boca capital partners as u.s. wage growth top estimates keeping the fed on track for further rate hikes. analysis is coming up next. this is bloomberg. this is bloomberg. colorado.

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>> overall, numbers trough. >> still a solid overall headline number. >> of economy is solid. >> wage growth is still stronger than the fed will feel comfortable with. >> wage growth gaining momentum, the opposite of what the fed wanted. >> we will be higher for longer than people think. >> that has to keep moving on the backside. >> the fed will hike. >> it will not in the way of the fed hiking in july. >> we could see another rate increase shortly thereafter. >> this is still strong and the fed has more to do. >> bloomberg tv guests reacting to the u.s. jobs report for june and what it means for the fed. many say another hike is coming. kim forrest is the cio at boca capital partners. you are not an economist.

you are a portfolio manager. i still want to show our viewers a chart that illustrates what the guests just told us friday after the payroll report that employers added 209,000 jobs, less than the forecast of 239,000, in fact, after missing, to the upside on their forecast, most economists. the surprise at this time is they were taking the opposite mistake. anyway, in terms of wage growth, 4.4 year-over-year from 4.3. people expect the fed to probably hike rates again this month. what does it mean for the markets? did you shift your positions? did you see major outlook for the market after years sell the report? kim: not really. we are always looking for the next three to five years. we are really trying to fill in the portfolio for people that found what we are doing a little

late and trying to catch them up to whatever the market sells off, to be honest. but in looking at what we are holding i am very happy with it. i agree with the consensus that we have got probably another 25 basis point increase this month from the fed. but, as someone that just went grocery shopping, i always keep my eye on housing prices, the prices continue to, if not stalled in more durable goods like houses and cars, come down rapidly oddly enough in fresh foods like dairy, meat, vegetables, and fruit. that is really good. it seems sticky in the middle of the store. things like cleaning products and processed food. overall i think we are still trending down. i was relieved to see that the white numbers in this jobs report -- because, that will

help push wage growth lower. kathleen: ok. where are you looking to add to the portfolios you are managing for your clients? kim: sure. well, two areas. i love a sort of down and out center to look at. that has to be the financial sector, right? the many crisis we had earlier this year, due to a lot of reasons. most of the banks that failed were just bad banks. they were doing bad things. so, i would take a look at the financial sector. but, really do your homework. make sure you understand how the bank makes money. it's not obvious. it is just through lending. but more importantly, you do have the tools to do this. you can look at what they're holding on other balance sheets and who they lend to. stay away from commercial real estate. stay away from lower consumer

oriented lenders. and stick to high-quality names and i think you have something there. kathleen: do you stick to big tech? kim: we do but not the big seven that have caused the market to run up, right? that is because i believe in ai. i was somebody that made ai both in custom applications for businesses and i worked at a shop where we made neural networking tools, nai technique. i think ai can and will improve productivity. but, it will take much longer than investors think. and it will take a lot of investment in basic blocking and tackling adding to the compute power. it will surely call for more storage. you needed data and lots of data to train ai to understand the world. haidi: if you are not looking at

the big seven, as you call them, the ones who have dominated so far this year, what opportunities are there? kim: well, we like micron, in particular, because they make a certain product that is a storage that does not need electricity to keep the zeros and ones turned on to be storage. we also like net app a vendor of storage tools, storage hardware and software. haidi: kim, always great to chat with you talking about investment ideas. ahead, catch our exclusive conversation with the taiwan stock exchange ceo sherman lin on bloomberg markets, the china open at this time on your screen. this is bloomberg.

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>> let's check stories around the world. president biden spoken with his turkish counterpart as the u.s. pushes for a deal to allow sweden's entry into nato. the two leaders agreed to talk again during the organization summit beginning tuesday in lithuania. turkey says sweden isn't doing enough to clamp down on turkish separatist groups it views as terrorists. democratic lawmakers concerned about a president biden's decision to send cluster munitions to ukraine. more than 100 countries have banned them in part because of danger to civilians. bidens team the -- claims that choice was difficult but necessary because ukraine's stock of ammunition is dwindling as it mounts a counteroffensive against russia. new york city and the eastern u.s. prices for severe thunderstorms as a front raises

the risk of flooding from vermont to north carolina. a slow moving band of showers is expected to cross the region sunday night into morning -- monday morning with up to 10 centimeters of rain possible. 600 flights have already been canceled at airports in new york and new jersey. keep it here. plenty more to come on daybreak australia. this is bloomberg.

>> i believed by bilateral meetings that totaled about 10 hours over two days served as a step forward in our effort to put the u.s./china relationship

on a more sure footing. we also believe that the united states and china should secretly -- to secure a relationship of healthy economic competition that is not a winner take all. but, with a fair set of rules to benefit both our countries over time. >> the u.s. treasury secretary janet yellen they're speaking during her trip to beijing. our next guest says her visit did not solve any problems. but the continued dialogue ratchets down tensions. with us is the principal at albright stonebridge group that served as a senior director for china affairs at the office of the u.s. trade representative. really great to have you with us. we appreciate your time. the establishment of guardrails continue. we have had a flurry of diplomatic interactions the past few weeks and more to come with carries visit as well.

given the expectation for deliverables were so low you see this regard us as a successful trip? >> great to be with you. i do for the reasons you just said. of course the expectations were very low for the actual outcomes of the visit. it was another interlocutor from the u.s. government going to beijing, reestablishing communication. secretary yellen is known by stakeholders in china but had not yet met the new economic team in china. this was an important first step. as she said, nothing can really be resolved after one set of meetings. but, very important to engage. on that point both the chinese and u.s. side characterized this as pragmatic and successful. haidi: it is interesting to me that there was some elaboration from secretary yellen talking about the narrow target and intent of some of the controls

and restrictions as being purely at the behest of u.s. security. we know there is an executive order being formed at the moment. does this -- would this give beijing a little reassurance when it comes to the export controls issues? or will this be the next big test of how strong the are? >> i think for beijing and for others listening to the secretary when she was in china, people were waiting to see how she did characterize the intense competition that the u.s. said it must engage in with china long-term. indeed, she did try to reassure stakeholders in china and elsewhere the u.s. government is not seeking to decouple an economic relationship with china. instead, looking to diversify. she did not even use the characterization of de-risking that of course the europeans have used, secretary blinken used.

beijing replied by saying that the coupling entity risking sound like the say -- decoupling and de-risking sound the same and both are bad. the treasury of the secretary was in beijing saying there would be national security based restrictions that we will put in place in sam -- some very narrowly defined elements of our relationships. she was at pains to say they would be narrowly targeted, very transparent, and, well explained. that means she was there in beijing to talk about those areas and she was also there to say, by and large, most elements of trade and investment exchange between the u.s. and china should and could compete with each other. kathleen: continuing momentum from this meeting with -- which

found gelid -- janet yellen as she always is, soft-spoken, clear, easy to talk to, well respected. now president xi jinping and president biden will be meeting on the sidelines of the g20 meeting coming up. what has this done, if anything, to set the stage for momentum between those two men when they talk? >> i think again, this visit by secretary yellen, for all the reasons you described was important. it was important for somebody well-liked and well-respected in china to have an opportunity for the first time to meet china's new economic team, to continue to build momentum towards sideline meetings at the g20 as well as hosting president xi jinping in november in san francisco at the aipac leaders meeting. for president biden and president xi jinping it's

important that their key deputies continue to meet in the lead up to the meeting. i think that while clearly nothing was resolved and clearly, one side does not agree with the other side on many areas of contention in the relationship, both sides have agreed that they have to continue to talk, even if they are not convincing one another. one of the reasons for continuing to talk is to lay the groundwork for the meetings for the president this fall. >> what will be the most important others leaders meetings? >> ensuring their relationship does not veer into conflict. putting in place guardrails to prevent escalating tensions over a host of issues, whether over russia's invasion of ukraine, and of course, as secretary yellen again reiterated when she was in china, we do not think china is supporting russia's war efforts.

we continue to closely monitor that. we don't want to see chinese companies helping the russian military continue to wage war. then the all-important issue of taiwan. where tensions continue to run extremely high. the two sides have to continue to talk on issues like economic relationships, political security issues, hopefully, climate change. when secretary kerry travels to beijing later this month, in order for that relationship ended the discussions between these two leaders to be balanced. because, one accident, one military incident with the current tensions so how could lead to a crisis. that is what both sides want to prevent. haidi: amy, you work as a trade negotiator. it does the domestic positioning of each party matter at the moment? we know that the chinese party

recovery is not what they are hoping for. the domestic pressure is there. there is always to messed again political pressure for president biden as well. doesn't that give either of the countries more leverage at this point? amy: i think for both countries and in the business communities in both countries it was important to hear secretary yellen and her counterparts, the premier, the vice premier, the minister of finance, the head of the central bank to talk about the u.s. china economic relationship and is a potential for the relationship to continue despite areas where clearly there will be still added restrictions, whether china's export restrictions like we just saw, restrictions on two key components for manufacturing electric vehicles. as well as semiconductors. that is a restriction that

secretary yellen said justified the u.s. government seeking to diversify supply chains, so we are not so the hold into the chinese stranglehold on rare earth and other critical minerals that go into manufacturing. the two sides talking to one another about the need to put in place with the u.s. says is a small yard, hyphens set of restrictions on certain elements of trade and investment but should not impede the rest of the economic relationship, which secretary yellen herself said, overwhelmingly, most elements of trade and investment should be able to continue. in that sense, this again was very positive for business communities, to hear that, when of course there are fears of decoupling continuing to expand. secretary yellen was at pains to try to say no, it will be quite

restrictive. as far as the elements, restrictions, she wanted to hear the same thing from her chinese counterparts. that they will not continue to expand restrictions on american companies operating in the china market. >> a lot at stake for both sides. thank you for helping us see this printable at the albright stonebridge group. watch us live and see past interviews on our interactive tv function tv . dive into any securities or bloomberg functions we talk about. plus, become part of the conversation by sending instant messages during the show. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. this is 76% of 23andme health customers surveyed

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>> new zealand signed a free-trade agreement with the european union which brussels says will increase its exports thereby almost $5 billion a year. paul allen has more. key features of the deal. did new zealand get everything they wanted? paul: you never get everything you want in these sorts of deals but they got close. there was a little disappointment around land. economists said despite not getting exactly what they

wanted, still a very good deal. good progress was made. about 150 $3 million of tariffs were cut per year. there will be terrorist free access for new zealand wine, apples, honey and other products as well. for the eu tariffs have been removed and there is protection for over 2000 products with geographical or general's around them as well. let's listen to what the eu president has had to say. >> is the european union is already new zealand's third-biggest trade partner. with this agreement we should be able to increase trade between us by 30%. and, eu investment in new zealand by 80%. >> there was one more step for the deal. it has to be ratified by the eu parliament. that should be something of a formality. >> australia's trade minister trying to finalize a deal with the eu that could be big for them.

how close are they getting? >> close, but again, sticking points as well. don farrell, the australian trade minister is in brussels this week and the sticking points are pretty much the same as the things new zealand was not 100% happy with, mostly to do with meat products, in particular, beef. don farrell saying, we are close but these remain difficult. these are issues vital to australia's national interest that could be improved. basically he wants the same level of access for australia that other countries god. from the eu perspective they burned up a lot of political capital giving generous concessions to countries like new zealand, canada command latin american countries as well area those geographical origin questions are sticking points as well. don farrell previously called the sorts of things emotional issues for farmers but they still needed to get resolved and get a deal across the line. >> the latest on the trade agreement.

look at the trading across fx today. we are seeing a sort of muted start when it comes to the broader risk asset mood going into asia monday morning. stop looking to a cautious start. the yen remaining in focus above the 142 level, slashing through multiple support points through to the end of last week. culminating in the u.s. jobs reports that suggest more then one more hype will be required from the fed. the dollar did decline after the moderation of u.s. job gains, indicated in june. there were some concerns over now the strength of the labor market under the tightening regime. the bloomberg dollar index fell about .7% after two days of advances. a little bit weaker, but more or less flat at this point in trading. the kiwi dollar, a little weakness, 62 u.s. cents. looking ahead to the rbnz decision this week. they are expected to hold.

we know the economy is in a technical recession as a result of really the transmission off the tightening process and the battle against inflation. rbnz already said if things it has done enough in that battle. add we are also watching when it comes to any reaction from the aussie dollar given we are looking at a decidedly risk off mood at this point in time, kathleen. kathleen: the ecb governing councilmember mario santana says core inflation is coming down faster that it went up and is confident prices have peaked. he spoke to bloomberg's caroline connan a-day simran wants economic conference. mario: we have to keep an eye on all items of inflation and poor inflation stands out as -- core inflation stands out as a very important educator as well. you are right. it is not coming down as fast as headline inflation. but, we also need to remember

that in the way you have it, it places the same trajectory. so, we need to remain confident about our way to -- the way we are fighting inflation. caroline: you remain confident you may have reached the peak? mario: all indicators say so. for this to happen we need to keep monetary policy very clear. we have increased interest rates for 400 basis points in a very short timeframe. it was the shortest timeframe in which we hiked that much. there is a monetary policy lag. we all know that. it takes time to build. because of the way interest rates are set in the market. there are -- many loans are fixed interest rates.

so it takes time for this to be transmitted to the economy. but, we are confident that the transmission mechanism is at work. >> a rate hike in july seems like a done deal. what about september? mario: i am really sticking all the time to the meeting by meeting data. we will have the meeting in july. we will discuss all indicators available. pmi's, and phone numbers for germany are not very good -- were not very good a couple weeks ago. the economy is slowing down. inflation is coming down. let me remind you, faster that up. this is important to bear in mind. of course, we will discuss in july what to do. it is very clear that the message must stand. we are here to fight inflation. september, we will have more

information coming up. we will be more confident on the process in september. that's my feeling. let's hope i'm right. we will see in september. one thing that we have to achieve, and again, it is a collective aim, is to become more predictable in monetary policy because this will reduce in center t -- uncertainty, build on confidence for investors and consumers. haidi: ecb governing councilmember and bank of portugal governor there. coming up, dominic barton joins us live from mongolia on daybreak asia to discuss strategy in the region and outlook when it comes to metals demand just after 10:00 a.m. if you are watching in sydney, 8:00 a.m. in hong kong. this is bloomberg.

kathleen: the oil market is showing signs of strength as opec-plus cuts take hold. the u.s. buys 600 million more barrels of oil as it reveals its emergency reserves. su keenan joins us with more. emergency stockpiles are at their lowest level in 40 years. su: that is the consequence of

a very unusual move by the biden administration to draw down 100 80 million barrels. we had never seen that before. from what is called the spr, the strategic petroleum reserve where oil is stored as a safety measure so in times of emergencies such as warfare, or as we saw later in the year, when we saw inflation, congress can have that. the downside is reserves have now been brought to a four decade low. so the barrels purchased is set for october and november. the administration is expected to purchase a total of 12 million barrels this year. the market conditions will determine that. they bought about 3 million barrels in september at a price just under $70 a barrel lower than the average $85 a barrel that crude sold for last year.

meanwhile, talking about strengths, certainly, and oil price we are seeing westech sis intermediate traded here in new york. holding close to $74 ending the week for the second straight week higher. same with crude oil, brent crude, also showing strength and tightening on the heels of opec plus cuts in production. the saudi's raising the price of crude for many customers. this has been a relief for traders that saw a lot of sliding in prices as there has been disappointing strength in the china rebound and recovery. >> we are watching them draw gas platform explosion in the gulf of mexico the -- getting a lot of certainty. >> there are issues with safety and environment and there has been a significant loss in oil outlook.

this is the state owned mexican oil platform in the gulf of mexico. it lost production capacity for about 700,000 barrels of oil. more than one third of daily output after a massive explosion on an oil platform in the gulf of mexico friday. at least two people died. one is missing. another eight were injured. they expect the output loss to be temporary. they lost about 11% of their total daily natural gas output. we are seeing a bit of a bid under natural gas at this hour. 10 to a lot of scrutiny from analysts for environmental and safety issues. in the back half of may, about 50% of refineries had accidents or fires. likely to be a lot more investigation there. haidi: yamaha motors sees

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a hydrogen combustion engine has challenges from taking up more space to safety concerns and limited infrastructure to support vehicles on the road. it is hardly a slamdunk alternative. >> in other words, yamaha motor is not quite ready to claim that ev's will be the de facto global solution. it is keeping the door open to see which solution will lead the green automotive race of the future. >> grand canyon university specializes you -- in helping you fit a find your purpose. visit gcu.edu

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coming up on >> welcome to daybreak asia counting down to asia's major market opens. >>