shery: you're watching daybreak: asia coming to you live from new york, sydney, and hong kong. annabelle: we are counting down to asia's major market opens. haidi: china's central bank expected to keep its medium term lending facility unchanged as traders await second order gdp data. janet yellen calls for further de-escalation of tensions with beijing but says it is premature to talk about eliminating tariffs. indonesia's finance tells us she is still optimistic about hitting the 5% growth target despite china's week recovery. shery: take a look at how u.s. futures are trading early in the asian session. we are seeing the downside pressure after they hit a wall on the friday's session. we had that rally in u.s. stocks and bonds throughout the week but that was not sustained in the friday's session when we got eco-data a that came in stronger than expected. consumer sentiment soaring to a near two-year hybrid what that

will mean for the fed and its tightening moves is a key question which is why we had treasury selling off in the front end of the curve really taking the brunt with the two-year yield rising to the 477 level. of course we cannot forget we are also entering earnings season. we had lenders last week beating lowered expectations but at the same time risk-off sentiment sent them down. we are not expecting the s&p 500, firms will see in 9% drop in profits which could be the worst season since 2020. what will that mean for risk sentiments across the markets is a big question. and we are seeing brent trading below the $80 a barrel level. you have to put this into context. we have seen three weeks of gains for oil prices. it is the same thing for the west dollar. we saw a little bit of gains on the friday's session given where treasury yields went at the same time we are talking about the worst slump since the month of november or so. we are also talking declines on

the s&p 500 but still the best week since mid-june. we are getting much this very mixed picture when it comes to market moves right now. annabelle: that is right. at the end of last week the story that really took hold, the narrative amongst traders was disinflation was taking effect because we had cpi data and the u.s., the ppi as well telling us price pressures are starting to moderate. so the expectation was perhaps the fed was nearing the end of its tightening cycle. we had that hike baked in for the end of the month but beyond that it was the expectation which started to see a hold. then you got the sense coming through friday in the u.s. that the economy in the u.s. is still hotter than expected. it tells us perhaps that inflation is not done yet. the full impact of place -- price pressure. this is feeding out into the asian landscape. asian stocks will be struggling throughout the session most likely. futures mostly indicating we will see moves to the downside

throughout the session. also watching the japanese yen because the story last week had been consolidation below the 138 level. now we are above it once again. but still well off the levels. to put into perspective the context a few weeks ago was the story of 145. in terms of what else we are watching today, what else will be playing out in sentiment, is the economic activity data that is due in china. we have a raft of numbers including second-quarter gdp plus the one year mlf rate. the month prior was the story of reduction of 10 basis points. the expectation today is we are going to see that staying on hold at 2.65%. policymakers in china are wary of going into full stimulus mode again. also noting we have the hkex canceling premarket trading today in hong kong. we have a t8 signal. so no morning session in hong kong this morning. something else we will be

watching of course throughout the day. haidi: u.s. china relations will be in full focus this week as treasury secretary janet yellen's attends g20 meetings in india. climate envoy john kerry is also holding talks in beijing. let's bring in stephen engle in hong kong. let's start off with yellen. what will the strategy be at the g20? stephen: i think you are right in that she has to find further areas to de-escalate the relationship with china. they have had antony blinken go to beijing, she was there, john kerry is there now. there will be more dialogue, but will there be a higher level meeting at some point between xi and biden? of course they have not met or even talked since the last g20 back in bali in november, eight months ago. finding areas to de-escalate further is going to be a priority obviously for the biden administration, and for the matter of china as well.

as their economy is sputtering. we are probably going to get disappointing gdp numbers. the headline later today will probably be very alarming in that it is 7.1% as a consensus. that is coming off base effects from the shanghai lockdown, so quarter on quarter growth will probably be about 0.8%. china has an impetus as well to de-escalate and get back on track the relationship with the u.s. now, janet yellen is saying that tariffs is not going to be one area where they can de-escalate at this time. the biden administration is nearing completion of a four year review of the china tariffs that were put in place by the last administration, by donald trump. essentially xi is saying that is not the cards. it is premature to use this, the tariffs reduction, as an area for de-escalation. she did address prior to the g20 meetings in india yesterday that

she tried to explain further why the u.s. is going through with the export controls and investment restrictions on china, again emphasizing these are targeted and really aimed at national security areas. she also talked up indy as being an indispensable partner in the biden administration's possible -- let's hear what janet yellen had to say about india as a partner. >> i aim to strengthen our bilateral economic ties and behavior by the private sector is really an important part of friends shoring. and we are seeing continued announcements of investment in india by private firms that see india as an excellent place to be producing and exporting to the united states. stephen: again, janet yellen talking about de-risking, not de-coupling. but india is going to play,

according to her, an important role in this friends shoring concept to lessen reliance on china and the global supply chain. shery: is that one area where we could see cooperation with climate? what can we expect from john kerry's visit to beijing? stephen: china and the u.s. are the two biggest emitters of greenhouse gases. they have to find areas they can agree. john kerry has talked about that. he eventually said if we can make some progress on climate change goals, whether the deployment of renewables, as well as improving power grid management, things like this, then we can damped down the edgy sense of competition between china and the u.s. which could lead to a mistake if we do not damped down those tensions, which according to john kerry, takes you to a place where you

do not need to go. this is part of the diplomatic push from the biden administration. i mentioned previous cabinet members who have already been to beijing. we are still awaiting whether biden and xi will have a phone call. they have not talked since the last g20 meeting in november. so there is continued room for conversations. shery: stephen engle there. we have the latest on that breaking news. hong kong exchanges and clearing now delaying morning trading as that storm signal eight is still in full force. of course we are talking about the typhoon bringing heavy rain and strong winds to the city. you can see perhaps from that live feed we have right now. the expectation is trading in hong kong is interrupted at least with hkex delaying the morning trading session as a storm signal eight is still in force.

we will keep you updated on trading in hong kong and of course what happens to the typhoon as well. let's return to the g20 indonesia finance minister saying she is optimistic about the 5% economic growth target for the year, even as china's economy slows down. she told us extra government spending ahead of elections next year will help offset weak global demand weighed on exports. she also said her country is seeking better ties with india to cope with a slump in china. she spoke exclusively to bloomberg ahead of the g20 finance chiefs meeting. >> china is not recovering as to what we originally thought from reopening after covid. india is growing in terms of the market. haidi: we will have more from that interview later this hour. of course our g20 coverage

continues throughout the day. exclusive conversations with the undp administrator. earnings season kicks into higher gear and jp morgan posted record profits. top rivals have signaled stronger-than-expected earnings from lending as well put -- as well. let's bring in adam haigh. what was it for jp morgan in terms of being able to deliver such stellar results? adam: this is about the huge tailwind we have seen four different parts of the business. consumers are still continuing to want to borrow increasing amounts. also on the commercial side. both are big areas for jp morgan and still performing very well. jp morgan is not alone. wells fargo also lifting forecasts. the bigger play for jp morgan is the scale which have increased opposed the acquisition of first republic. that is also giving them the

ability to get market share in different parts of their global business. expectations were pretty high going into this number. the stock had rallied a little on friday morning and pretty much came off and finished reasonably flat. it does give a sense of those expectations have been met. you have these structural tailwind's that have done very well for the bank this quarter but now the onus is on what happens from here and that is a big unknown still. shery: especially given the fed's rate trajectory. so where are the areas of concern? adam: of course the fed and where they go from here is one huge component of that. as i was saying, this huge increase in rates we have seen over the last 12 months or so has been a key difference that banks have been able to pass this through onto investors with some bumper profits. but the flipside is some areas

of the economy now that are coming under asher. a lot of -- under pressure. a lot of those areas are no secrets including commercial property which continues to be very pressured. lots of private assets in the commercial space are now being sold down at reasonable discounts, if indeed a buyer can be found. this is something the wells fargo cfo alluded to. he was suggesting this issue around commercial property is not something going away anytime soon. he said it will be a while before we see the end of this. that is one key thing to look forward to into next year. and of course where fed policy goes from here. haidi: coming up, we will speak to anz on why they are not expecting asian central banks to pivot away from the rate hike campaign anytime soon. chief economist richard yetsenga is with us next. this is bloomberg. ♪

shery: let's take a look at the week ahead. a big focus on china this week, starting with the pboc setting its one hear rate in a few hours. we will also get june's activitys data expected to show the recovery continuing to weaken amid sluggish consumer spending. a beaten-down property market,

and also record youth unemployment. big banks will set their one year and five year loan prime rates on thursday. on the inflation front, cpi in the u.k. is expected to remain high, raising the chances of the boe delivering a 50 basis point rate hike in august. also getting inflation data from the euro area, new zealand and japan. also, u.s. industrial production numbers, australia's westpac leading index, and ppi figures from south korea. haidi: our next guest is looking to extend the rate pause, a call unrelated to the appointment of the new rate governor. richard yetsenga. unrelated to the appointment, because we know she is the continuity candidate. is there more political pressure on the rba than ever? richard: the optical pressure has definitely ramped up on all central banks the last couple of years. they all had a correlated policy

challenge in the pandemic and the stimulus may be justified at the time but then kept too long and created this inflation challenge, and a synchronized challenge after. i do not expect the focus to diminishment domestically we can get back to focusing on the outcome of dealing with this inflation challenge. haidi: it will be complicated for the rba. i am interested in the human occasion aspect. does that heighten the risk? richard: they have a lot to do, no doubt about that. then there is the transformation challenge as a result of the review. it must make things more complicated. but on the policy side they will continue to focus hard on that is the obviously have. it probably makes it easier, the fact we are at a peak, or very close to a peak in the interest rate cycle. haidi: australia's economic fortune still depends on what we

see out of china. i want to look at domestic activity data. gdp is a centerpiece but we know that will be distorted. retail sales number is meant to be looking quite bad from 12.7% to just over 3%. will we see any market improvement without some big and measures from the government? richard: i don't think so. china is in a different economic phase now. this is not the 20 years of china were used to pre-pandemic. i think a lot of it is quite structural. stimulus can have an impact, but i suspect even with decent stimulus the impact is more fleeting than people might have expected. it does not generate as much of a vigorous bounceback as we might have before. my expectation is we probably do not see 6% gdp growth in china again. we are growing it materially slower over time. shery: does that mean we are not necessarily going to see any moves coming from the boc or

commercial banks this week? richard: they are going to ease policy at some stage. don't expect anything this week unambiguously policymakers are under pressure every year -- everywhere. dealing with inflation and china there are calls to stimulate growth. i would expect something, i just don't think it will be enough to change substantially expectations about the chinese economy. shery: are there any implications we are missing given the fact that china is going in a completely opposite direction to what the fed is doing? richard: it probably does take the -- the china situation probably does take some staying out of the global story but i think that is happening anyway. u.s. headline cpi peaked at 9.1 and it is now 3%. core is taking longer to come down but it has definitely happened. we have aced -- we have a fed that has raised rates all but 500 basis points from the low print at some point that will be

enough tightening in the system. china's economic softness is one of the things adding to this emerging evidence that we are basically at the end of a global tightening cycle. shery: we got a bit of mixed economic data last week, whether the cpi numbers or consumer confidence numbers we got in the u.s. how are you interpreting these mixed signals? richard: i think mixed is good. it is better than all the signals suggesting. the fact we are getting mixed signals is one of the things which suggests to me we are near the end of the tightening cycle. we know it takes monetary tightening time to take full effects. we are seeing evidence it is biting in the inflation numbers. not quite in the labor markets but there are some hints there. as those effects continue to flow through, i think it will become clearer that we are within a top one or two hikes. haidi: how much does climate,

extreme weather reallymuddy the outlook when it comes to inflation expectations going forward as a bigger picture? richard: climate is growing as a macro it economic influence today. as a risk but also as an inflationary challenge, an investment challenge, as a business activity challenge. it must be impacting i think global trade as companies look to make and strengthen climate commitments and the need to understand the supply chains. i expect they are not liking the complexity in the supply chain and maybe there parts of the supply chains that are too opaque and they don't feel comfortable so they are rejigging those. you cannot think about the inflation challenge we are facing and how to deal with it without also reading climate change. haidi: it comes into the endgame of the cycle? richard: i don't know it is cyclical, it is more structural.

it is one of the reasons we are not headed for a nasty global downturn on the other side of this tightening cycle because climate is one of the myriad of things governments want to support. there are plenty of areas for government to focus. haidi: always great to chat with you. richard yetsenga here in sydney with us. you can get a roundup of the stories you need to know in today's edition of daybreak. terminal subscribers is that dayb . also on your mobile. you can always tweak the settings to get the news that matters to you. this is bloomberg. ♪ ♪ with everything you have on your plate, earning your degree online seems... impossible. but at grand canyon university, we specialize in helping you fit a master's degree in education into your busy day. your graduation team led by your own gcu counselor provides you with the personal support you need to succeed! achieve your goals with a plan and team behind you!

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shery: here are some headlines around the world. soccer superstar lionel messi has finalized his deal to join miami, signing a multimillion dollar contract that fans hope

will mark a turning point in the u.s. for the world's most popular sport. his contract will run through the 2025 major league soccer season. he will be available for the july 21 matchup with the mexican club. tom cruise's latest blockbuster had a disappointing opening weekend. mission impossible dead reckoning part one collected over $56 million in the u.s. and canada for the friday to sunday period, but that fell short of expectations for $61 million to $75 million. the seventh installment of the action franchise has been one of the industry's most anticipated films of the year. take a look at how u.s. futures are trading. we are seeing downside pressure of .2% for major u.s. future indices as you can see. this of course extending perhaps the losses we saw on the friday session when the rally in u.s. stocks and bonds hit a wall. we had stronger data than we

were expecting on consumer sentiment, soaring to an almost two year high. still, putting the bigger picture of things and we are still around at $10 trillion rally for global stocks this year. on the s&p 500 it is still the best week since mid june. the thing is we are now gearing up for what happens with fed policy, the rate trajectory which is why we saw treasuries selling off friday after that strong economic data giving rise to speculation that perhaps this is not necessarily going to be the last rate hike in this credit tightening cycle. the front end of the curve really bore the brunt last week on friday. not to mention of course we have s&p 500 firms expected to post a 9% drop in profits in the second quarter and that would make it the worst season since 2020. you see the dollar, a slight gain right now and a slight gain we saw on friday.

again, the broader picture is we saw the largest weekly route since november, all on expectations of where the fed might go from here. the bloomberg dollar index lost about 2% last week. all of this setting us up for what happens in asian markets this week. today we have the singapore domestic exports numbers coming up in about one hour. we will bring you those live. we are seeing sydney futures holding pretty steady at the moment. we have plenty more to come on daybreak asia. this is bloomberg. ♪

shery: so would take over as governor of the philippines and police based just two weeks ago at a time of an aggressive rate

hiking cycle. on a trip to canada, he said down with kathleen hays for an exclusive conversation, his first tv interview since taking over the leadership of the bsp. investors have been thinking that perhaps the pause would continue, but he sounded more hawkish. >> people thought he might be bored of his, because after such an aggressive cycle, the most aggressive rate hiking cycle for the bsp in 20 years carried out by his predecessor. before that, we had someone considered to be bored dovish, it does sound like he is looking at everything, he is ready for anything, but he is definitely saying the next move if it is not a pause may have to be a hike. >> we are not sure we have done enough. we will see.

4% is the top of our range, the target, so we want to be well into the target range before we consider anything like a rate cut. that will depend on how weak the economy is, as strong the economy is, but we will see. i think it is premature to talk about a rate cut. the economy is still very strong, inflation is still above our target range, so we will have to see. >> it sounds like your door is not wide open to rate cuts. the economy is expected to grow 6%, 7% this year. headline inflation has come down from 8.7% to 5.4% in june. even though you would or could consider cuts if it goes below 4%, you are not on the verge of doing that. you are much more on the verge

of waiting, watching and seeing what happens. >> that is correct, we are on the verge of waiting for better data, but i think this is what i model say -- our models say. we will hit the target range by next quarter or fourth quarter of this year, and we might actually overshoot on the low side, go below 2% in the first quarter of next year, and what we hope to happen is inflation to set in the target range. >> some people are getting worried about headline inflation because of el niño, worries about food supply. if there is less supply, prices go up, and that is a very important part of the philippines inflation picture, so why will they go down at a time like this? >> if supply shocks disappear, they stop happening, then inflation should keep coming down. and if our tightening has worked

, it might have worked more effectively than we thought. then we have to wonder if there is risk of recession. we might have to consider a rate cut. >> you worked at the new york fed for 10 years, so i assume you have some extra sense of gauging the fed. broadly, what do you expect the fed's trajectory to be now? >> i think it is going to pause, because the last inflation number was very good. maybe it does not have to tighten anymore, so i think it will pause for a while. the tricky thing is the fed meets july 25, 26, and bsp meets three weeks later. three weeks is an eternity for financial markets, so with the difference between policy rate of the fed and our policy rate comes too wide, it kind of makes

some market purchase depends feel uneasy, and they may -- they may retreat. usually small movements are ok, it does not worry us. but sometimes when it is a's sharp movement, then it begins to affect expectations and we begin to worry. >> so what does that mean, if that is what is happening, what would that mean for your august meeting? >> well, before august sometimes we release some kind of forward guidance. it will be accompanied by a policy rate move. we will see in three weeks what we should do. it depends a lot on what did i

we will see. >> it seems to me -- i should ask, are you open to cut, you are open to pause, you are open to hike depending on what the conditions are? >> for now, we are contemplating whether to hike or not to hike. we are not thinking about whether to cut or not to cut. it is more of the tightening side. >> pretty clear, more on the tightening side, we are not thinking about cuts. investors are wondering which way he would go, because he could answer this question about cutting rates if the inflation rate does go below 4%, that is their forecast, and i think he is pretty clear. they are still worried about it, and also very important key was talking about the peso. if it starts getting more volatile, then that is something

that might affect their policy path as well. shery: kathleen hays with that exclusive conversation with the new central bank governor of the philippines. asian markets set for perhaps a tough session today. we saw the risk of sentiment across global markets and the friday session. annabelle, what are you seeing? annabelle: we are on the countdown to note hong kong of las vegas morning session the late due to a t8. and japan markets are set today for public holiday, so korea and australia due to open in about 25 minutes now. in the session today, it will come down to the direction of the dollar, because the pullback we saw in trading over the past week around the lowest level now in about a year, but also the biggest drop we have seen since november of last year in the bloomberg delegates last week, it really down to expectations around the fed and perhaps investors starting to think that they would be nearing the end of the tightening cycle.

whether or not that is the case and what that means for the dollar over the coming week with investors continuing to assess signals of strength in the u.s. economy. that is going to be a really key driver, and we are watching the dollar closely. let's change on, because the big moves are playing out in the asian fx space. you can see on a month to date basis korean won up 4% as is the japanese yen. watching what it means because a weaker dollar has big ramifications particularly for developing markets, lowering him court costs. watching indonesia, little changed over the course of this month so far against the greenback. haidi: indonesia's finance minister says she is optimistic about the 5% target this year even as their meeting trading partner china faces a slump. she spoke exclusively to bloomberg ahead of the g20 finance meeting in india on the challenges for emerging markets. >> the concern is, of course,

there is a policy implication for each of the situations. specifically the united states, their currency as well as capital is very important, so when they are responding to their inflation with increasing interest rates and tightening liquidity, that does spill over to the rest of the world. on the other hand, the second largest economy like china is facing low inflation or even now talking about the potential of deflation, so this kind of deviation of the very important economies of the world will create a policy which is going to be also diverting [indiscernible] for many asean countries including indonesia we will look

at all of it. for example, inflation, this is not just a monetary phenomenon. this is a supply disruption, so we have to make sure the policy will address the source of the problem. it is not just the symptom of the inflation itself. >> how big a concern is china? is it a read flight from the global economy? it continues to remain weak. >> we look at manufacturing pmi. we are looking also on property. china needs to rejump so that they will have higher growth. that will be the policy challenge for china, because in the past we know that china was driven mainly by investment and fti, but also by their own credit gentling for many institutions, including their's, and that is why if china is

facing a certain policy challenge at this very moment, for a country like indonesia which is also affected by china performance, we need to make sure we have enough options or choices of this case. for example, export destination. of course european has also weakened, and 2023 it was predicted that there would be a recession in many advanced countries. china is not recovering as we originally thought after opening from covid, so indonesia is looking at other alternatives like india. here it is actually growing in terms of the market. their economic growth is incredibly strong, important commodities, indonesia providing that. we are trying to discuss a partnership, which is also going

to be much benefiting both sides. >> can that had a relationship between indonesia and india counter what is happening in china? you take a look at some of the data out of indonesia itself, you are seeing a slowdown in exports, investment, and lending even. >> in terms of the global economy, the second largest is not as big as other countries including india in this case, so whatever will happen to china is definitely going to affect the rest of the world. china's role is very important for many emerging markets when they export raw materials, capital flows on china. that is one sort of growth for many emerging countries. never happens to china definitely cannot be immediately substituted, but for any country including indonesia, we also

have our domestic demand. we have to find a way that we can minimize this kind of potential weakness on the environment globally. shery: the indonesian finance minister speaking exclusively with haslinda amin. we have more to come on "bloomberg daybreak: asia." this is bloomberg. ♪

shery: markets in tokyo showed

today for japan's marine day holiday, take a look at that run-up in japanese stocks, nikkei225 up around 24% year to date, and part of what has been driving gains, the optimism over japan are improvements in corporate governance. our next guest says there is generational change happening in japan, and this will have implications for corporate performance. running is now is zuhair khan, portfolio manager. great to have you with us. those implications of general change and optimism over governance reforms in japan, can they really propel or gains in a market that as we have seen just now as already rallied more than 20%? >> i do feel as a whole the market is fairly valued, so there is not much more to come out, but there is a generational

change going on in japan. if you look at the new ceos of japanese companies, they are usually people in their 50's, and 50's, often early 50's. in the past people would be promoted to ceo in their mid 60's, so they are 10 years younger. more importantly, these are people started their careers at work -- or after the bubble burst in japan, so they have seen japan in stagnation for much of their career, and they do not have the memory of days when japan was number one in the world, the bubble era, so they recognize the need for change, and they are going to really be changemakers, this next generation of ceos. certainly japanese women have not played a major part in japanese corporate society, and

what we now find is there are a lot of japanese women who are moving into the board room, and when they have women in japan joining the board room, they were retired bureaucrats or academics. often times these are grown women in their 40's. young japanese are much more willing. 1/3 of all new hires in japan are job hoppers. people are job hopping, and a lot of the best young japanese graduates, they went to join venture companies, they do not want to join large corporate japan. shery: not really focusing on employment for life, but is that also how you generate returns in

the sense that you flip that around, and you can short those companies that are not really great in terms of governance or other issues that people care about no? -- now? >> our research shows 25% of companies are actively changing, governance, bringing in young ceos for the digital age, so those are companies you can buy, there are still 25%, 35% of japanese companies who were unwilling to change. there ceos are very old, very entrenched in their positions and unwilling to changeover form. as an investor, at a minimum you need to avoid those companies and you can generate returns by shorting them. haidi: when you take a look at the yen effect at the moment, do

you have confidence in where the currency side of things is going to be given how much uncertainty there is over how much more to the cycle there is for the u.s. dollar? >> is very tough, and i am the worst person to tell you when the currency, but i think fundamentally the japanese yen is so undervalued, that if you take a slightly longer term view, you will generate good returns from yen appreciation, 115, 120 to th yen is a sensible number. it is almost a ridiculous number. it cannot less that way. the yen will come back. one of the things i will say is that the japanese inflation data, wage growth data is moving

slowly, and that means the boj is going to be cautious, and they will not suddenly change their policy, so it is going to depend on when the u.s. fed reverses it cycle more than the boj making suddenly large big moves. the boj will move, but slowly and cautiously. haidi: when it comes to the rally we have seen over the past few months, so much of it has been driven by a couple of things, one is u.s. influence -- inflows as a result of the warren buffett effect and reallocation away from china. do you expect these two the medics were inflows to be able to continue? -- thematic's for inflows to be able to continue? >> the flows from china, we can rely on that. i think china has a lot of structural problems. i used to be a banking sector

analyst over chinese banks during a banking crisis and japanese banks over their banking crisis, and i think china is in a similar situation. i think it will take years if not a decade or two to fix its own problems, so i think those flows away from china is something you can rely on. flows coming in from the u.s. and other foreign investors, it will depend a bit on how well the japanese economy performs, given the sluggish global economy and also the pace of corporate governance reform, which is definitely happening, but not at a rapid pace. haidi: corporate governance has been one of the things that constantly comes up when it comes to structural reforms, that i am wondering in terms of market confidence what is one

other major theme you think japan needs right now? >> um -- so, i think one of depend's problems has been that they have been a bad at communicating changes that are happening in japan. japanese tend to present to themselves as a sort of monolithic culture, so i think it is really going to be up to individual japanese companies, which are making tremendous reforms and changes to get the message out there to the world to say, no, this japan is different. it is not the japan of the lost ticket era. this is a much more dynamic japan, this is a japan where young people are interested in going to startups, they want to start new things.

i think that is the message that really has to get out there, that japan is changing and changing tremendously. haidi: really great to have you with us, zuhair khan. tune into bloomberg radio and hear more from the day of kospi's big newsmakers and get in-depth analysis from the daybreak team broadcasting live from our studio in hong kong. listening via the app, bloomberg plus, or bloombergradio.com. much more ahead. this is bloomberg. ♪

haidi: here is the latest on some of the severe weather stories we are monitoring. 39 people have died with nine missing in flooding and landslides across south korea. nine bodies have been recovered from the central city. one of 15 vehicles including a buzz were trapped. the underground road was flooded after a nearby river overflowed. heavy rainfall is expected to persist through tuesday. morning trading in hong kong will be delayed as a typhoon brings heavy wind and strong rains to the city. they have issued the number 8 typhoon signal. it is forecast to move west-northwest of hong kong toward a peninsula and hunan island. a cluster a severe thunderstorms has pounded the u.s. northeast

including new york city, unleashing deadly flooding in pennsylvania and halting operations at an airport. all three imposed a temporary pause on operation sunday afternoon. the philadelphia inquirer reporting five people have died and two children are missing after floods ripped through the county. the market opens in sydney and seoul our next as we head into the start of trading for this brand-new week. asian stocks struggling a bit at the open as inflation doubts anger. hong kong delayed morgan -- morning trading as a result of that typhoon. the morning opens our next. -- are next. this is bloomberg. ♪ from wherever you are! find your purpose at grand canyon university. visit gcu.edu

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daybreak: asia." we are counting down to the market opens in south korea and australia, japan on holiday. it investors have indeed to digest, including data from china, singapore, and more this morning. haidi: it will be the centerpiece, not just the gdp number very that will be distorted by shanghai lockdowns last year. we are looking at domestic activity, retail sales looking to plunge. there will be further calls for speculation. it will we finally get more fiscal on a tear reaction from the pboc and the chinese government? annabelle: that is what traders have been pinning their hopes on, but the opens we have today, korea, japan is on holiday. we will wait for a few moments for live pressing -- rising

show. we are expecting weakness today after what happened on friday, because we had consumer sentiment reaching an almost two year high in the u.s. georgia price expectations likewise increasing, and the narratives are perhaps of the optimism we have seen around the disinflation trade that took hold at the end of last week in the u.s. could also be starting to be unwound just a little bit, and we had that spike in treasury yields. that put tech stocks under pressure. nasdaq inching lower in the morning session, but that is the live pricing coming online for korea. we had optimism that puts it in perspective, the gain of 1.4% into the close on friday, and then being given up as we get underway for the session this monday morning, down .4 of 1%. the korean won is weaker against the greenback. it was the dollar weakness, the narrative over the course of last week, but we are seeing it further into the session.

the other thing to note is bank earnings, that has also kicked off on friday. we had reports from j.p. morgan, wells fargo, citigroup, concerns of a weighed bank stocks as they come online in asia. the big focus really is down to the china data dump we are getting later this morning. there is a monthly activity numbers, second-quarter gdp figure, mlf decision that is due as well, at a broadly we are expecting it is going to be that distortion due to those effects from the shanghai lockdowns that was lifted, but bloomberg economics team saying expect further weakness and the need perhaps support for their support measures to come through from policymakers in china. shery: we are also watching policymakers at the federal reserve, market seeing whether a hike this month will be the central bank's last of this tightening cycle. let's bring in richard, a global

economic advisor at pimco who previously served as vice chair at the federal reserve. great to have you with us. >> good morning. shery: what we are expecting from the fed, it seems like the july rate hike is already baked in, but how carefully will you be watching the port guidance, and what will you be looking out for? >> i agree with your assessment, i do think it is baked in. the fed is in black now -- bl ackout now, so we will not hear anything, but lots of fed speak and a lot getting the hiking in july. the german will let us press conference, and naturally the focus on this meeting, the decision itself and probably the language of the statement is going to be pretty straightforward, but i would expect the chair to put his own stamp on his assessment of whether or not additional hikes will be needed.

he will want to reserve the option, everyone likes optionality to do so. there is a lot of data between this meeting and the september meeting. a very important speech at jackson all, so i do not expect a hard thing to indicate a hike in september, but they will leave the options open for sure. shery: what do you make of the inflation numbers last week? as fed governor waller said, one data point is not make a trend. >> i respect and no chris waller, and on that point i agree, that said i think there is more than just one data point. at some of the details in prior reports were encouraging, so i do agree, and i think quite frankly the fed several times in the last several years including when i was there got burned when they looked at data that was improving and extrapolated that, so i think this community --

this committee will be wary, but clearly they would rather have data like last week's. haidi: do you see a soft landing as being still achievable, and how should bond it be positioning at this point? >> what i see is very achievable, and i have used this term before, it is a softish lending. in a soft landing you disinflation and avoid a recession. i do think some modest rise in the unemployment rate to 4.5% will be required, and typically when we get a rise in rate like that, it has always been designated a technical recession , so i think a softish lending with slowdown in growth and modest rise in unemployment is what the fed is aiming to achieve, and i think they have a shot at doing that. the important point for your

viewers is the powell fed will keep at it until the job is done, because ultimately they went to return inflation back toward the 2% goal. haidi: we saw treasuries retreating after the u.s. consumer confidence surged. where do 10 year yields end the year? >> really, since last october, so over the last nine months, 10-year treasury yield's have been in a pretty tight range of 4.25% to 3.25%. you saw them approach of the upper end of that range with cpi improving, so i do not think i have a particularly strong view. i think we are in a range for 10 year treasury's until we get a decisive break down in inflation and we start to get good signals that the fed may start to ease. until then, i think this range

will continue to hold. shery: let's talk about china and what your takeaways are from all of your travels across asia right now, because the inflationary story playing out in that economy so very different from other major advanced economies. how do you look at china from the investment perspective and where they are headed on their price growth? >> you are absolutely correct. many folks, including myself, thought with the reopening in china that it would look somewhat similar to the reopening in other countries, which initially it was inflationary because demand exceeded supply. that has not been the case at all and china. growth was strong in q1, it disappointed in q2, and policymakers are talking about introducing measures to support the economy. i think they want to hit their 5% gdp target, but the china slow down especially in

inflation has been something of a surprise to me at least, and the fact that the policymakers are talking about adding support as well shows they are concerned about it as well. shery: what are the global implications of where china is going? >> china is a huge part of the global economy. a china slowdown obviously has implications for global activity, especially in tradable sectors. obviously in europe in the month of june, i met with a lot of folks, and certainly there any countries in europe including germany have a lot of export exposure to china directly and indirectly. so, yes, it is a factor in assessing the global outlook for sure. also very relevant, the composition of chinese growth is relevant as you look at global commodity markets, and the composition of growth this year has not been putting upward

pressure on commodity prices. haidi: when it comes to japan, it is getting more interesting. we are expecting them to lift that inflation forecast in july. do you see them fighting policy this month, and if not this month, do you have a view one when that could potentially happen? >> are you referencing japan, is that correct? haidi: that is right, the bank of japan. >> i just did not care the question. yes, you know, japan is under abenomics and the kuroda leadership and the exquisite goal was not just to get it to 2% but above 2%, and i think kuroda succeeded in doing that so far under governor ueda's leadership, but i would expect over time, i do not think anything is imminent. i would expect over time

especially if inflation remains anchored close to this 2% level that they aspire to that over time the boj will begin to make some adjustments in policy, but i do not think anything is imminent right now. shery: the g20 in into get this week, what are some of the geopolitical risks pimco is watching? >> there are certainly enough geopolitical risks to watch, and we highlighted that in our most recent essay. obviously you have a land where in europe, you have tensions in asia or incipient intentions -- tensions in asia. this is a precarious line in terms of risk. our baseline view is any extreme outcomes are not the likely case, but as an investor you always have to be attentive to either low probability events, and we are factoring those in as

appropriate to our investment energy. -- strategy. haidi: always great to have you with us, richard. let's get you back to hong kong, annabelle is taking a look at movers when it comes to asian and king given the tailwind we are expecting to get from u.s. bank earnings. annabelle: that is right, we had them kicking off on friday in the u.s. jp morgan, wells fargo, citigroup, we saw them raising earlier gains but they closed in the red this morning. yes, we are seeing mixed moves throughout the session, and 10 minutes into trading korea and australia, most sectors are in the red so far, but the bank earnings coming in and the concerns have been around deposit because, competition, that is something that weighed on equities there. the concerns, concerns about the health of the u.s. economy. so that is what we are seeing in terms of bank stock so for this

morning in asia. the sector broadly has been under pressure given the regional bank crisis in the u.s., even though we did not transpire to asian lenders generally. something that is led to downward pressure on some of that, but let's change on. other stocks we are watching this morning are the korean airlines and asean airlines in particular, because we have actually got the pilot union of the airline threatening to say just right. this would take place from july 24, concerns around wage talks have stalled. a little under pressure as we get underway with trading this morning. under the law in korea, during strikes korean airlines are required to have 80% of staff on international routes, and the last time the pilots working for the airlines went on strike was back in december 2016, so quite a rare event we are seeing this morning in korea. shery: still ahead, we put the

spotlight on china ahead of key activity data, and that pob see -- pboc setting its rate. up next, rate hikes back on the table for philippines under a new central bank chief. catch our exclusive interview with the bsp governor just ahead. this is bloomberg. ♪

haidi: u.s. china relations back in full focus as treasury secretary janet yellen g20 meetings in india and climate envoy john kerry stocks in

beijing. for more let's bring in our chief north asia correspondent stephen engle. barely a moment of rest when it comes to diplomacy and these interactions between beijing and washington with yellen's visit and the g20 meeting. what is your strategy? >> there is a big agenda for g20, if you want to look at u.s. china relations as a separate site issue, which will kind of dominate much of the discussions in india, you look at yellen who is fresh upper trip to beijing. she is saying she once you find further ways to de-escalate the tensions with china. now, one area at least at this moment they will not de-escalate , and that is by reducing the tariffs or removing the china terrace, which goes back to the trump era, and that is a sticking point and dialogue going forward. china would like to see a

relaxation of these tariffs at a time when the chinese economy is sputtering, no doubt. just listen to janet yellen, what she had to say why they are not necessarily going to be relaxing those tariffs anytime soon. >> the tariffs were put in place because we had concern with unfair trade practices on china's side, and our concerns with those practices remained, so perhaps over time this is an area where we could make progress, but i would say it is premature to use this is an area for de-escalation at least at this time. >> so she wants to find areas to de-escalate tensions, except not relaxing those tariffs, which are still in place from the trump administration, and she said they are nearing a

completion of the nearly four year review of those tariffs, and i am sure we will get some sort of announcement on what they found in due time. she did mention about u.s. export controls and investment restrictions in china. she reiterated what she had said previously and that these are targeted curbs, it is about de-risking, not about decoupling. shery: we are following separate conversations when it comes to climate change between the u.s. and chinese climate envoy's, and it seems those conversations have started already. john kerry kerry and u.s. state department official saying that. those talks began on sunday. >> that is right, he will have three full days of discussion in beijing on climate change issues. these are the world's two biggest greenhouse gas emitters. they have not spoken at great

length in about eight months or thereabouts, no, nearly a year. nancy pelosi went to taiwan in august. it has been almost a year, and china disengaged, basically severed dialogue on many fronts, including climate change, so it is been nearly a year that they have not talked about it, nwc the climate crisis, the hottest temperatures on the planet on record, so there is lots to discuss it. it they will not necessarily make huge progress since they have not talked in a year, but john kerry made the point they need to be having dialogue, and he says there could be room on deployment, joint deployment of renewables as well as management of the power grids, so there are areas to discuss, there are areas for progress. we do not know what deliverables will be on this three day trip,

but it is good progress. shery: stephen engle there with the latest on the g20 and that the u.s.-china diplomatic exchanges. it take a look at currencies trading at the moment, we have been following mild gains on the u.s. dollar after seeing its largest weekly route in november. for the japanese yen holding 138, 139 level. we are talking about a two month high for the japanese yen, this leading to the chief currency official last week talking about a closely watching of the market , given that it may be a sudden unwinding of speculative yen short positions we are seeing right now, so we are watching that closely as the korean won hold that the 1266 level. the aussie dollar and kiwi dollar have their biggest weekly advances in months. the biggest since october for the kiwi dollar against the u.s.

dollar given the risk appetite driven by expectations the u.s. is nearing peak rates. also following developing market currencies as well, including the philippine peso. the new philippine central bank governor has signaled for the rate hikes remain on the table, with officials is not sure yet if the bsp has done enough to fight inflation. he spoke exclusively to kathleen hays and his first interview since taking over the leadership of the central bank. >> for now, we are contemplating whether to hike or not to hike. we are not thinking about whether to cut or not to cut. it is more on the tightening side. shery: you can get a roundup of all of the stories that you need to know to get your day going into today's edition of daybreak. bloomberg subscribers go to dayb on your terminals, also

available in the mobile on your bloomberg app. customize the settings so you only get news on the industries and assets that you care about. this is bloomberg. ♪

shery: we are watching extreme weather around the world, korean officials say 39 people have been killed in flooding and landslides. let's get more details in seoul. al that is the situation right now? >> sure, among the 39 dead people 13 were forming in a northern province, and we saw about 15 vehicles including a bus were trapped in an underground pass, and when i saw the video clip by local

residents, they are showing the tunnel was quickly flooded after a nearby river overflowed, and rescuers are still working on finding bodies. they are looking for more bodies and also using equipment and pulling up vehicles in the pass. haidi: what is been the government's reaction so far? >> the south korean prime minister is in a meeting. he organized rescue activities. we did not have news on friday and saturday because yoon just returned to the country after the nato summit, so the point is officials already issued a lot of warnings before the flooding,

because in recent years south korea is different summer months, we are having strong rate in a short period of time. it is probably because of global warming in general. in korea [indiscernible] they are blaming lack of infrastructure on friday to control the traffic. haidi: our correspondent with the latest. it we are severe weather situations globally right now. while the fires continuing to scorch parts of candida after already burning a record 25 million hectares this year, an area roughly the size of iceland. 900 fire still active over the

weekend, most of them still out of control. british columbia is nearing the brunt of an inferno following massive fires in alberta and quebec. a cluster of severe thunderstorms have pounded the u.s. northeast, including new york city unleashing deadly flooding in pennsylvania and halting operations at several air works. all three new york city area airports imposed a temporary pause on operations on sunday afternoon. the philadelphia inquirer is reporting five people died and two children are missing after floods ripped through bucks county. morning trading in hong kong will be delayed as a typhoon brings heavy rain and strong wind to the city. local authorities have issued the number 8-signal, the third highest on a scale of five area the typhoon is forecast to move west-northwest of hong kong toward a peninsula and hana island. we do have much more to come here on "bloomberg daybreak: asia." this is bloomberg. ♪

shery: we have breaking news out of singapore, we are getting nonoil domestic export numbers,

a contraction of 15.5% year on year for the month of june. sort of in line with estimates and a deeper contraction than what was expected. at the month of may has also been revised slightly upwards, but still a contraction of 14.8%, so all in all you're on your domestic exports number is now been in contraction for nine consecutive months. we have seen the global slowdown in trade continuing to impact the singapore economy. non-oil export numbers on month on month basis is a rise of 5.4%. the estimate was for a contraction, and it is also arise after contraction and the double digits the previous month, but this number has been fluctuating drastically. we are watching very closely electronics export numbers, year on year contraction of 19%.

and easing of contraction last month. double digit contraction and electronics exports for an eighth consecutive month, so a little bit of a mixed picture when it comes to singapore exports at this point, but not surprising given we are getting mixed pictures across economic data around the world given growing slowdowns in global trade, but let's he help broader markets are trading now. annabelle: it really is that story of mixed signals in the session, and that is perhaps why 30 minutes into the session for korea and australia, japan and hong kong stock today. fairly flat in the session, you can see mixed moves across sectors, and we are seeing more turn positive with financials, health care, materials, and communication services and the green, but let's change on and take a look at the broader

market landscape this morning, because it really is that story of where traders are reassessing the big narrative that came through last week. the story had been perhaps we are starting to see inflation pressures easing in the u.s., and traders were clinging to that end reassessing expectations around the fed, but importantly in the u.s. on friday it was that story of consumer confidence hitting around the two year high. that tells is perhaps officials at the fed are not done just yet, so bond yields moving higher in the session area -- session. japan is shut, for dollar coming back into play, and we are seeing currencies weaker. we have the japanese yen, stand out above the 138 level. equities picture under pressure in the session, but a broad lead landscape as well. m we are seeingetals declining to start the week, and that will be very much anticipating what

he comes out from the data dump intranet late this morning. haidi: major focus when it comes to the china economy beginning with the pboc setting of the one year mlf rate and second-quarter gpd numbers, june activity numbers expecting to show the recovery continued to weaken amid consumers spending, record youth unemployment just some of the things on the list of issues. let's bring in the head of asia economics at ubs. i almost do not want to discuss second-quarter gdp, because we know it will be distorted by the shanghai lockdown base effect, but what would you be looking out for when it comes to domestic activity numbers, retail sales in particular looking quite worrisome? >> yes, indeed, i think for the second quarter the base effect plays a big role, so our growth will probably be around 7% for

gdp, but on a quarter on quarter basis, we think the sequential momentum as actually slowed significantly, it may be running just above 1%. for retail sales, i think the june number, the lucked out lester was over -- lockdown last month was over. much weaker than the double digit growth in may and april, but i think sequentially it is just flat compared to may and june, so we are not seeing any pickup in domestic activity momentum in june compared to a very weak april, may, that is what we are looking at. haidi: we are looking at the pboc likely to hold the lending facility rate steady at 2.65%. when it comes to monetary fiscal stimulus measures, first of all,

are we expecting them still? and what they have the sort of impact they have had historically, given that stimulus measures are getting less productive as time wears on? >> we are still expecting stimulus measures, because growth has slowed dramatically in the second quarter, and in addition to weak exports, domestic demand especially on the property side, those of come down to basic with the bottom of the fourth quarter, which was the fourth quarter last year. the authorities relating to stabilize the economy from here. the measures are more effective at the moment with the fiscal, so more spending, infrastructure. ideally more for the household, but that will be unlikely, and also more funding support for developers to finish unfinished

products -- projects as well as city restrictions on purpose -- purchase. those are very much needed. monetary policy side, but it growth stabilized a bit in june, but more is needed, because credit growth has slowed very sharply in the last two months, so they need to be accommodative. rate cut, not a lot of space and also not effective at this moment given very weak confidence and demand from the corporate and household sector, so it is really fiscal and property. shery: i find it very interesting how consumer confidence here in the u.s. has soared to an almost two year high despite all of the talk about a potential recession, all of the fed continuing to tightening -- tighten, and

intranet we are not seeing that. what will it take to live sentiment there? >> in the u.s., you had very massive fiscal support. basically checks in the mail, and that did not happen in china. in china because covid lasted till longer, the lockdowns and so on, so household income growth has been very weak. the services sector right now is recovering at a slow pace, so i think it will just take time for the household sector to see the improvement in the labor markets, see income growth for them to gradually pick up some confidence. at the moment, i think for the authorities short of stimulating the household sector with subsidies, they can definitely help stabilize the property sector, because property weakness is another factor depressing household confidence. shery: what about youth unemployment? how bad is the situation there, and what are the social implications as well for china?

>> youth unemployment is above 20%. obviously, it is very high, but there is a cyclical element as well as structural. before covid, it was already above 12%. the cyclical part gives you weakness in the economy, some of the services sector hit because of regulations and someone, but that said, there is about 100 million people in that age range, 36 million are the ones we are talking about, that is the denominator. many of them are urban and college graduated people, so they are unhappy, that i think at this moment there are questions in terms of family and so on, so i do not think there will be social unrest. there is certainly unhappiness as well depressing some of the

consumption of course, but with the economy gradually improving especially on the services sector, and now the authorities also emphasizing support for the platform companies in digital economy, which hires a lot of the more educated youth, so i think gradually the youth unemployment should come down. haidi: what about that yuan, because we have seen this rebound, or support? has all of the negativity been priced in for the second half if you get signs the u.s. tightening campaign is nearing an end? >> indeed, the u.s. inflation is the big mover here, so if we think the u.s. dollar strength has peaked, then i think the rmb weakness most likely has also bottomed, and there is still some uncertainty about china's economic recovery.

we think it is at the bottom, right now the economy is at the bottom. growth should start to recover with policy support. that should give confidence to that yuan, as well. there is some downside risk if the government does not come in with enough support in the property sector continues to stay at the bottom or worsen further. there could be weakness to come for cny. as a baseline, ubs does forecast cny going back by the side of seven. shery: good to have you here on a very important day when we have tons of economic data out of china. follow all of those on tliv . get commentary and analysis from bloomberg's expert editors. coming up next, indonesia's finance minister remains optimistic about a 5% target even as made a -- major trading

partner china faces that slump we talked about. we hear exclusively from her next. this is bloomberg. ♪

haidi: u.s. treasury secretary janet yellen says she is eager to build on recent improvements

in u.s.-china relations as finest cheese -- chiefs from around the world gather in india. bloomberg's very own a haslinda amin joins us live from the venue. what are the key themes we will be watching out for? of course, so many challenges for finance heads and central bankers as they gathered today. >> you were right about that, lots of challenges we had from secretary janet yellen yesterday talking about how u.s.-china relations is a case in point. she came to the home state of prime minister modi saying that she is going to de-escalate tensions within the u.s. and china, rest on the visit from beijing last week. she talked about how they are unsurer -- on surer footing. she is buzzing back on the idea -- pushing back on the idea that

de-escalation will take place on the basis of easing tariffs. they were imposed during the trump administration but continued by the biden administration. she says that will take time. the u.s. pretty much remains concerned about china's trade practices, so we will wait and see what transpires at the end of a four year review that is coming up when it comes to those trade tariffs. shery: what happens at these g20 gatherings is there is always that deep division between more developed economies and less developed economies, developing nations, whether it is on russia and ukraine or economic issues. how are emerging economies dealing with policy decisions made by these giants like the u.s. and china? >> there is pushback when it comes to the global economic order as we know it, more and

more we are seeing india for instance leading the pack, leading the global south pushing back on policy developed by these nations. challenges faced by emerging markets, one of the challenges remains a slowdown in china as well as a possible recession in the u.s. we heard from janet yellen talking about how it was part of conversations in beijing, chin'' a slow down a huge concern. they are talking about the possibility of countering that slow down, measures that can be implemented. i spoke with the finance minister of the country, and said, yes, it is a big concern. they are looking to counter that with better relations, that are trade with india. she says she remains optimistic. >> the concern is, of course, there is a policy implication. the events countries like the united states, the role of their

currency as well as capital is very important, so when they are responding to inflation with increasing interest rates and tightening liquidity, that definitely has spill over to the rest of the world. on the other hand, the second largest economy china is facing with very low inflation and even talking about the potential of deflation. this kind of deviation from the very important economies of the world will read a policy which is also going to be diverting. for many of the asean countries including indonesia, we will look at all of it. on inflation, this is not just a monetary phenomenon. this is a supply disruption, so we have to make sure that the

response of the policy will address the source of the problem. it is not just of the symptom of the inflation itself. >> how big a concern is china? is it a red flag for the global economy? when you look at the echo data it continues to look weak. >> we look at manufacturing pmi, also on the property. china needs to restart or rejump so that we are going to have higher growth. i think that is going to be the policy challenge for china, because in the past we know china was driven by investment and fti, but also by their own credit channeling for many institutions, including their, and that is why is china is facing a certain policy challenge at this moment, for a country like indonesia, which is

also affected by the performance, we have to make sure that we have enough option or choices in this case. for example, export destination. of course, europe is already weakened and 2023 it was with predicted -- it was predicted there would be a recession in advanced countries. indonesia is now looking at other alternatives like india. it is actually growing in terms of the market. there economic growth is remarkably also very strong, and that is why we need a lot of important commodities, indonesia providing that. we are trying to discuss the partnership, which is going to be also much benefiting both sides. >> can the type of relationship between india and indonesia and -- counter the relationship with

china. you are seeing a slowdown in investments, lending even. can you maintain your growth targets? >> the size of china in terms of the global economy, it certainly is not as big as other countries including india in this case, so whatever happened to china is definitely going to affect the rest of the world read do not forget china's role, which is very important in the past two decades were many emerging countries. they are getting financial capital inflows from china. that is also one source of growth of many emerging countries, so whatever will happen to china definitely cannot be immediately substituted, for any country, including indonesia which is open, but also we have our domestic demand. we have to find a way that we can minimize this kind of potential weakness on the environment globally.

>> even as we talk about the dot polots, -- plots, the shadows over the global economy, there are still spots of light out there, including india. shery: haslinda amin joining us where our g20 coverage continues throughout the day. we have exclusive interviews with udp administrator and eu commissioner for academic affairs. take a look at hong kong right now, we are just getting word from the hong kong observatory the typhoon signal numbered 8 will remain in force until 4:00 p.m. hong kong has delayed the morning trading session, already strapped the futures trading as well. we are now hearing from the hong kong observatory the typhoon signal will remain until at least 4:00 p.m. hong kong time, which means that winds with

speeds of 63 kilometers per hour or more are expected. this is bloomberg. ♪ grand canyon university specializes in helping you fit a master's degree in business into your busy day. your graduation team led by your own gcu counselor

provides you with the personal support you need to succeed! find your purpose. visit gcu.edu shery: china's tech stocks just had their best week since december, but for many investors would been earned teasing best rallies, signs of fundamental

improvement are needed before they jump again. let's bring in our correspondent. does that mean this huge sudden surge in optimism for tech stocks may not be long-lived? >> yeah, there are too many questions right now, so you saw the hang seng index jump or than a percent in its best week since december. at the end of the day investors are wondering whether the fines levied on ant did mark the end of the regulatory crackdown or if there is more to come. on top of that, the economy is still doing badly. exports are contracting, and the threat of deflation is there. what is helping tech right now is the fact that yields dropping, of course with the interest rate outlook in the u.s. all of that is definitely

helping china tech i would say, but how sustainable that is, it is not clear yet. haidi: we are going into a data dump this morning. what is key here? >> one thing that is clear of course is the gdp number coming out, people are expecting a 7.1% increase year on year, that is based on the base effects of the shanghai lockdowns. the quarterly change is the more important number. i do not think there is a lot of optimism out there, and i would like to add mainland traders have been selling hong kong shares since those fines were announced by regulators a couple of days ago. they sold one point $1 billion in shares, so there is not much optimism in the market. haidi: went to watch, ishika

there as we have had significant shifts on how investors have been feeling about chinese equities as well as the yuan. "bloomberg markets: china open" is next, but not so much when it comes to trading action in hong kong. we have heard confirmation saying typhoon number 8 will remain in place until 4:00 p.m. we heard earlier that delay when it comes to the morning trading session because of the typhoon. the $5.2 trillion stock market is seeing disruptions because of the typhoon after we saw the number 8 signal, the third highest on a scale of 5 being elevated. this is bloomberg. ♪

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