impacted and affected, and at risk of hiv. the rocket fund takes all of the work that we're doing, all over the world, and looks at the most effective ways, to get resources to them, to get services to them. the idea that we have saved five million people's lives, it's overwhelming. it's everything. >> you are watching daybreak asia, to you live from new york, sydney and hong kong.

>> counting down to the major market opens. >> the top stories this hour, earnings in focus, tesla price cuts rising profits, that flax -- netflix disappointing despite its past work -- because of its past maturing crackdown. goldman-s noise results from a dealmaking slump and the communist party of china approving private business conditions as economic growth wanes. >> let's take a look at how u.s. futures are trading in the asian session, we see downward pressure after stocks getting in the new york session. the s&p futures down -- the nasdaq 100 futures down once 6%. -- .6%. in the regular session we actually had the kbw index at the highest since march since we got earnings from the likes of other banks like wells fargo and goldman sachs.

we had real estate and utilities leading the way and a little more optimism when it came to the strategy from apple. u.s. treasuries joined given that we saw those price pressures in the u.k. drop until the lowest -- dropping to the lowest in 15 months, but crude is down almost .2%. this of course as we had seen traders ignoring the stockpile report that saw downside pressure which would have shown them a better market picture. tesla is down, netflix is down, pressure in the after-hours session, you can see that profitability shrinking in the second quarter or tesla, not sitting well, it flicks also falling after sales and forecasts fell short of estimates. let's get into tesla first with su keenan. investors are not liking what they see so far.

>> they don't like the lower profitability, and on the earnings call, muska said that he will price cards -- cut prices even further if economic conditions worsen. and he is quite comfortable with that. it is a strategy that appears to be working because the company beat on both earnings and revenue expectations, although it missed on gross margins, while the inventory signal for low demand is attempting to be countered by muska saying that demand is off the hook and it is hard to find the hook. the company is also pouring money into ai and the new cyber truck. and there are many analysts that believe cyber truck sales could actually help bolster demand at this point. exporting items came in at $.91 a share for tesla, more than the $.81 estimate, going up to 21.9 billion, you could not have a

better performance, up 135% year to date, so, was it a good earnings report? analysts will say that it was, but the question that investors have, and you're looking at the cyber truck there, able to withstand a rock in the window, the question a lot of investors have is what is going to drive demand here, this is a highly valued stock, they came in with impressive numbers and record deliveries, tesla said it delivered a record 400 sushi 6140 cars in the. -- time spurred on by those reductions. the concern is what drives the growth from here beyond the organic movement that they are seeing. >> we had the earnings call just wrap up as well. what did we hear? >> we saw the stock dropped to the lowest that we have ever seen it -- we have seen it in a standard trading as mask -- muska speaking. some of the comments he made did

not appear to be cheering investors. he was almost exasperated at the continued questions about gross margins. what is the question he asked as another analyst asked about why they are continuing with these price cuts. he has -- he is comfortable sacrificing margins for sale volume. there is also a lot more competition, especially from china and europe, a lot of companies now making electronic vehicles, you can see that they are making more cars than they are selling. analysts have said that new models like the cyber truck could help tesla maintain its extorting area sales growth rate, but the longer -- long-awaited truck will not be available in large volumes until next year. meanwhile, tesla talking about pouring money, more than $1 billion into a new supercomputer, it is spending money big on ai and on the cyber

truck and that is how the conference call wrapped. back to you. >> su keenan there. speaking of shares not doing too well, third quarter revenue forecasts for netflix fell short of estimates. let's bring in our media and entertainment coverage editor for this. chris, the subscriber numbers were encouraging, and there is clearly evidence that the pastor chang crackdown, even if it is a longer-term project, is starting to bear fruit. -- password sharing crackdown, even if it is a longer-term project, is starting to bear fruit. >> wall street was exciting about 2 million, almost three times as many, and against signs that the password sharing feature is translating into new subscribers. they said that this ad support

tear has added a small number of subscriptions. there is a strong reaction from the market despite good news. >> is there also reaction to the writers strike and how this will affect their content pipeline? >> it is a mixed bag. initially, they said that they expected about $1.5 billion more in cash this year. because they are not producing as many shows as they thought that they were going to be. and that seemed like good news. but then on a call with investors they said that could bump back again in 2024 and production resumes. so, it looks like it may be a wash. but they are confident and have been saying that they will have enough new films and tv shows on the surface to keep people engaged. >> chris, i don't know if you have an answer to this, i know a lot of people do not, do we have any, i guess, expectation of how the residuals issues might be resolved and what impact that might have for netflix?

>> no. at some point, these strikes will get resolved. and at some point, likely the writers and the actors will get more money, particularly from streaming. so, those costs will be factored in. but how it ultimately plays out, the two sides are not even talking right now. >> are bloomberg media and entertainment coverage reported there. and we have our next to contend with as well. goldman sachs clothing -- closing higher despite profit plunging in one of its weakest quarters. we have david solomon for more and allison williams here. how much of this was priced in and how bad are the numbers? >> it was a messy quarter, and i think that was definitely well-broadcasted by the firm. they did have a big impairment, they did flight that on the commercial real estate side of things, they also had a one time

deal which helped them on their portfolio and they had green sky. the way we look at the quarter was that it was noisy but it is helping them clean up and move towards the future. they had, not only the real estate impairments, due to the consolidated investments, but also write-downs and what they are referring to as their legacy portfolio. if we think about goldman sachs, one of the things that they have been focusing on is moving away from someone who makes money off of the principal investments and direct investments and is managing and raising money for clients and earning fees, using their expertise in a different way that investors tend to favor. i think that this quarter is really supportive of why they are doing their strategy. -- that strategy. when we strip off of these one timers, and the severance cost, they are setting themselves up

for a second half and delivery on the core cost objectives. -- in delivering on the core cost objectives. >> now that we have had these numbers come through, can we take a look at the winners and losers and where the strength is? >> i think that from the overall perspective at the u.s. banks, j.p. morgan had the strongest quarter, the net interest income story is so resilient. it is a concern for the overall banking industry. we have reached the peak there. such a strong interest level speaking because deposit rock -- costs are rising and commercial loans are shrinking. for bank of america, citigroup, most fargo, the car business is big for all of these big banks and that is helping resilience in their net interest income, the deposit costs are not rising as much as investors fear. the income is positive for this sector as a whole, on the loss

provision front, credit card is normalizing, wells fargo did take a qamar -- charge for commercial real estate, you heard them talk about the mark to market at goldman sachs, and when you look at the investment fee side of the business, certainly there are more positive comments about the outlook especially from morgan stanley, that helps their stock, they also benefited from very strong wealth flows, so within that business they are winning. and then finally, capital markets, trading and fees, it was the smaller competitors that did the best this quarter. part of that is the interest rate creek -- trading business which is huge. and moderating for the big players. and commodities which was really on fire is down. bank of america, really the resilient one of the group banks showing a 10% increase in trading, benefiting from investments, and a little bit of wells fargo, really the best performer and fitting from some

of their investments. -- benefiting from some of their investments. >> let's get back to hong kong, with bell, who is looking at the set up this thursday. >> quite a lot for investors to get through, because you have those numbers coming through from her earnings in the tech space, thanks as you were discussing, but essentially what we are watching his the wall street session and the outlook around central banks. we had the u.k. inflation numbers coming through which dropped, telling us perhaps they don't need to be quite as aggressive. we have jobs numbers due in australia later as well, in a couple hours, which we will be closely watching along with the rba, we had a survey coming out from the boj around policies in october, investors will be watching that as well with currency levels. we have the yen approaching that 140 mark, something that does not appear to be helping the

outlook for japanese stocks. new zealand online to the downside. the other market to watch is china in the session today because we are pointing a little bit higher. it has been extremely rest -- rough for chinese stocks, led by does economic data sets that came out on monday, but more pledges are coming through tuesday and wednesday and the latest one is really around support for the private sector. what is interesting is this chart here, which looks at the underperformance of the golden dragon index in the u.s. versus its peers on the nasdaq here. and that really kickback in 2021, -- off back in 2021. really the question is how much investors take heart in what beijing is saying because we have heard this tone coming through, this support for the private sector, but the winds do appear to be shifting in that direction. >> we will be looking at china's

embattled property sector, and why they are not expecting visible recovery in home sales for the rest of the year. bad news is good news for china, at the moment, more on the market strategy from tribeca next. this is bloomberg. ♪

>> taking a look at australia and new zealand basket -- assets, we are watching new zealand and the performance of the kiwi dollar, watching these development coming out of auckland where police say that three people have been shot dead in a shooting incident, including the gunman and to others. this comes as new zealand and australia are preparing to host the opening ceremony of the fee for 2023 women's world cup in just hours. also, watching australia be a bit directionless as we look at futures in sydney flat. we also see employment pulling back from that surge that we saw in may, also watching some of the big energy and mining names, for your guidance expectations for production, and santos, as well as these food and soft commodities related names after we saw that big surge in weeks prices overnight.

we still wondering about these investment opportunities, and we have a manager at tribeca here for our guest today. we are waiting for the central tank and game at the end of the cycle. how are you navigating the potential for volatility? >> we think that volatility is certain, that is one thing we are certain about in the next six months. how you navigate that is focusing on the company earnings because the sentiment is swinging from one day to another, sometimes good news is good news, sometimes good news is bad news. at the moment we see strong quarter earnings out of america, which in turn could be in a way that maybe the interest rate will stay higher for longer. what it does indicate is that some of the oversold cyclical sectors like banking may be pushed forward a little bit longer. we had a little bit of a last hurrah before things get tighter.

earnings season has been pushing through quite well in the u.s., which is now translating into the market. in australia we are looking reasonably positive into the earnings season. but i would be using it as more of a contrarian, where there is opportunity to buy something or it gets sold off because sentiment gets week, or because it is for taking profits or a result. where you have more downgrades for the next year. >> is china and exposure opportunity? you talk about good news be banners and units being bad news. it used to be the opposite because you would have gotten stimulus which is not so for comic this time. -- forthcoming this time. >> i think bad news is good news in china. but investors have given up at this point. it certainly seems that they have given up since early in the year about this reopening. we think that the quarterly data was weak out of china, and we think that the stimulus

announcement is stepping up and it is very much targeted at cyclical sectors like the housing and consumer. we think that there will be more and more targeting towards that phase. we think that the reopening is doing well, but it is much slower than be expected at the beginning of the year. i do think that china, by the end of this calendar year, will reach their growth target one way or another. >> what will we need to see in china to be more convinced about a recovery? we have seen so many new announcements coming from beijing but the markets have not really reacted well. >> i think the market at this point, since the strong rally in january that we saw with the market putting out a lot of risk -- bullishness into the chinese market has faded away, investors want to see more concrete evidence of the consumer started to pick up, seeing some of those-critique things picking up, it is really the concrete data that needs to improve, but

we will not see that until we have seen the credit date of start to improve. and china is all about credit data, when that starts to improve, we should start seeing very very good numbers. and in our view, this is just a matter of time. >> there are defaults ongoing in property, but i wonder how well-capitalized are broader asian corporate's. even in the u.s. we continue to see pockets of vulnerability when it comes to corporate credit. >> absolutely. for the asian market, corporate credit is recently strong. there is some weakness, but it's the same in the u.s.. if you look into the commercial property space, things are really tough. and quite frankly, i think within the next few months we will see more distress out of those commercial assets, those areas around the world. i don't think that anyone is really thinking about it,

because of the pressure they are expensing. but other corporate's are doing quite well. what is happening now, around the world, is that corporate want to be -- wants to be more cautious. china is different, but everywhere else we want to be cautious. i think even though they have a good balance sheet, they will use every opportunity, acquisition or other opportunities, to recapitalize and have a strong balance sheet heading into a slowdown. and that is only prudent because with the strong balance sheet you could pick up lots of opportunities when things do slowdown materially. >> before we go, i know that the treasury is one of your constructive pix. and i know we are launching the new premium yuan to the global market. is this thing -- anything you are quite bullish on when it comes to the consumer in china? >> i think it is on the slow path to recovery.

at this point, there were a lot of questions about the chinese consumer recovering as far as other overseas consumers. member, the chinese consumer did not have stimulus or job keeping measures. now it is about finding a job and then expanding those services. and we see those services increasing significant. they're going to restaurants, they started traveling domestically, have not gone outside yet, but this is just the early stage. we are going through a multiyear demand for services, pent-up demand for services. there in china and outside. it is well leveraged for that. >> always good to have you with us, the portfolio manager at tribeca investment partners, giving us the roundup of some those stories. you can earn more on dayb and on mobile anywhere on the bloomberg app, you can customize your news for the assets and industries that mad -- matter to you. this is bloomberg. ♪

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>> let's get you the latest from the corporate fraud. bloomberg has where that apple is working on ai tools which could challenge those of open ai and google and others. sources say that it has built its own framework to create large language models known as ajax. they have also graded a chatbot service that some engineers called apple gpt. it has yet to devise a clear strategy for releasing the technology to consumers. ibm has maintained its forecast of 3-5% sales growth, overcoming investor anxiety about weakening demand for internet technology. second quarter sales were $15.5 billion, little changed from a year earlier, slightly below

average estimates. ibm also affirmed its previous guidance for a free cash flow of $10.5 billion in 2023. asml orders bruce in the second quarter as the chipmaking demand to find a slump in the district. they were up 20% on the previous quarter, and europe's most viable tech company raised its full-year guidance and now expects next -- net sales to grow towards 30%. u.s. futures trading early in the asian section -- session, downward pressure with the nasdaq leading the decline coming after u.s. stocks actually rose in the new york session, real estate and utilities leading the gains, we mentioned those optimism -- that optimism over ai and apple strategy there. but we also had the bank index

closing at the highest since march. and we are seeing the pressure on tesla and netflix. tesla's profitability shrinking in the second quarter, really those margins being squeezed by months of price cuts. netflix also falling after forecasts fell short of wall street estimates. and, of course, we are following oil prices given that we had a stronger dollar pressuring oil prices, those stockpiles actually showing a demand might be increasing. mortar, on daybreak asia. this is bloomberg. --

annabelle: this is "daybreak asia". we are 30 minutes out from the open now for tokyo, sydney and

soul and at the outset, it still is that big focus coming through on earnings from wall street because we had netflix, tesla coming through and after hours. both of those stocks slipping quite substantially. tesla, it is reducing or lowering in after-hours trading after we saw margins really being ushered by the impact of cost cuts on its vehicles over the past reporting times. netflix as well. he saw that sales forecast coming out that was sort of way analysts had been expecting. really overshadowing which was the better data that added nearly million subscribers, which is more than double what had been forecast for the latest . also telling us perhaps that crackdown on passport -- password sharing is having an impact. these are the big moves we are watching and after hours and setting the tone. heading into futures, we are setting up for some fairly mixed rating. see u.s. futures trading lower. even though the session on wall street overnight was fairly positive, we are setting up for

another day of weaker trading. the other big watch point in this session will be the china market because we are seeing futures looking a little bit better. the hi to, it's that extra foul support that's coming through this time for a new sector and focus. haidi: china is going more support for the private sector. they will treat private firms the same. let's bring in our chief north asian correspondent stephen engle in hong kong. this both fits in with the broad confidence boosting message that we've had this week, but also the idea that private enterprises might be back in favor again. stephen: they need the private sector, obviously. before the discovering of the ant ipo in october of 2020, these platform companies like alibaba, like tencent, were a big employer, and they contributed quite a bit through china's new main pillar of

consumption and the likes. so, the private sector is taking quite a battering, whether it's the property sector, online gaming, online education, all reglet tory pressure. building back that confidence is key. can they talk it upward did they need to throw stimulus at the problem, and that's one of the reasons why the market reaction has been a little bit muted, even though there has been a pop up for the platform economy like alibaba since they finished the rectification process, the government finally gave the final bill of a fine of a billion dollars to alibaba, and signaled that the crackdown was over, getting that confidence back up his key, now we get, following last week we had the premier having a face-to-face meeting, we were hearing from sources with a lot of these tech companies to convey their support. we had the national development reform commission, the top planning betty last week top up

the platform economy, now we are getting a joint statement late yesterday from the central committee, the 200 plus members of the top party officials, as well as the top government body, which is the state council. so you have the party in the government, two main bodies issuing a statement talking up the private sector and saying, yes, we are going to go forward and treat private sector companies equally to state owned enterprises. anyone who knows the chinese economy, let's face it, soe get preferential treatment on a lot of areas, including preferential bank lending and rates and the like. so treating the private sector equally, if it comes to fruition and they back it up with action, that will be something significant. but again, it's getting that confidence back in the private sector. the big question is, will it work without a big tank stimulus were targeted measures?

similarly, the polar barrel in december made a very similar pledge. it's different than today but they made a pledge in december to ensure private enterprises were treated better. but what has the economy done since then? it had a pop up after the end of covid zero policies, but it has kind of petered out, it was less than 1% in the data numbers that we got on monday. we have the chart, you could show that that really tells you whether confidence is. they need to find areas to grow. the private sectors a big part of the economy, they are just not spending or investing like they used to. >> our chief north asian correspondent stephen engle with the ongoing economic challenges in china. given all of those challenges, we continue to see corporate credit slowing. this chart showing the year to issuance as of june was 40% lower than the previous years, local defaults have climbed to

almost $2 million this year while offshore delinquencies have totaled more than $26 billion. our next guest expects more property bond, the senior credit analyst joins us now in singapore. great to have you with us. housetrained is a funding environment in china right now? >> i think the offshore funder environment is still very liquid and sound because the pboc support measures including the policy rate cut. but if we look out offshore rate bond, the situation is totally different, and for the investment rate issuers, they still might be able to tap, but some of them might be onshore markets for higher issuers especially chinese property developers. there is very low recognition for them in the offshore dollar bond market, and we expected to continue in the second half of the year, so it really dampens

investors interest in these. >> the expectation is for some sort of property easing measures ahead to help that sector there, are we going to see those coming in, how effective would those be? >> we have been questioning the timing scale and effectiveness of the easing measures. we think doing away with the whole purchase restrictions in the cities might not trickle down to lower tier cities, we think the profitability has been very faint so waiters -- so there is the mid move for the cut, the rates on existing mortgages and there has been a lot of talks about going to support the property sector that we have seen in the past that these findings are going to be prioritize for the completion of presale homes, not going to benefit the bondholders. >> good contraction when it comes to sales it remains key. his this regardless of supportive measures? is the

reality just that we are going to see a longer-term structural adjustment in the property sector in china? >> we don't really expect a very visible recovery of home sales in the second half of the year. we think there's a general lack of animal spirit in both the first primary and secondary property purpose -- purchase. the weakening macro backdrop, the second is because homebuyers expectations of home prices have really come down over the past year, and if they don't expect this channel to be a preservation of capital and to deployment of their savings, either get would be very difficult to ca visible rebound. i think we have to notice the recovery, even in the first quarter of the year for the property market, it has been different cities and different developers. >> does that mean we start to see contagion across non-

properly related credit given that we have seen the market shrinking so rapidly? >> i would say in the investment rate china credit space, there has not been so much contagion, even for the local government financing vehicles. they still pay their public onshore and offshore dollar bonds, and because of the limited issue, they're pricing of the investment credits from china has been very well supported and if you come to the high-yield market, slightly different picture for those related to the value trend of the property sector, they could be subject to very volatile price movements, a lot of idiosyncratic credit risks. >> we have seen the results and as expected, they were pretty ugly. what were your key takeaways and what's next? >> seeing the result is better

than nothing, but the numbers are really dated, there has been no up-to-date information in terms of the valuation of their onshore and offshore assessment available for restructuring. i think there has been doubt in towards whether the company will resume this sure trading -- i think coming out this information is apposite -- i think for the government, it will continue to prioritize the completion of a lot of the incomplete home projects of evergrande, so a lot of it will be prioritized for that, and it is unclear whether any assets could be effectively reinvested for the dollar bondholders.

shery: very good to have her with us. haidi: china's really -- pledge when it comes to this without getting -- let's move onto some of the stories that we are watching today. washington and beijing breaking new ground and there is a three-day visit ended with the world's two biggest carbon polluters. he says talks will continue ahead are critical u.n. climate summer this november in dubai. >> came here to break new ground and it is clear that we are going to need. it will need both of us.

>> china's envoy to the u.s. says beijing will retaliate the biden administration imposes limits on capital that come close to the nation. the country doesn't want to trade. they won't beyond the actions. u.s. officials are seeking to wrap up a proposal by the end of august that would restrict american tech investments in china. we are getting some breaking news, some reaction from one of the biggest private enterprises, $.10 tony commenting on these guidelines and the foul that both the communist party and the chinese government made in that joint pledge statement really to improve conditions for private businesses and bolster corporate confidence as we see economic growth continuing to wane. the reporter of our china cctv

state media reporting that he says guidelines will boost internet terms determination to develop these new guidelines help private firms confidence really continuing to get that reaction as we've seen really a change when it comes to how the central government has been treating private enterprises in particular when it comes to tech with the years on crack down on big tech, which of course begin with financial alibaba and jack are really being seen to now wrap up the tech industry is really being seen key private enterprise more broadly, rejuvenating the chinese recovery. that recovery has been much slower and sluggish and expected coming out of covid zero. china vowing to treat companies in this joint pledge the statement -- the same as state owned enterprises with the statement released on wednesday. we are now hearing their views on how this could boost private enterprise and internet firms in

particular. more to come on daybreak asia, this is bloomberg. ♪ 76% of 23andme health customers surveyed reported taking healthier actions. because they know health isn't just a future state. health happens now. start your dna-powered health journey today with personalized insights from 23andme.

haidi: as we are just hours away

from the opening ceremony that takes place. we are just hearing the details heard. >> it was meant to be a very happy occasion. a huge football tournament at each stage here in australia and new zealand. downtown often reports of them entering a construction site with a pump action shotgun, shooting two people are dead. the shooter himself also understood to be dead. the prime minister saying that there was a political or ideological motivation behind it. it appears that the gunmen was acting as an individual, we were told it's going to go ahead as planned. a tragic event in downtown

auckland, a moment of impact of woman's football world cup. >> tell us about the tournament, the scale of the event and how much it cost. paul: it's a huge event for both australia and new zealand. it's going to be one of the largest women football events in the world. we just had football australia confirmed this morning that there's been 1.3 million tickets sold, and that means it has surpassed the 1.1 million tickets sold at the last women's cup in 2019 in france. viewership number is going to be something closely watched, also, the final in france for years ago watch by 82 million people, a cumulative audience of 1.1 billion people watching that event as well. so there's a very big event, we are expecting 70,000 fans that will watch australia play ireland in a few hours time. here in stadium australia. and that will be for women's

football match in australia. there's just one thing casting a shadow over all of this, and that's the prize money for the men's and women's version of the events. final touches being applied to this fans own for the woman's football world cup. it is expected to deliver a will to him boost to tourism after some tough years during the pandemic. >> you shouldn't underestimate the power of football globally, and there is just a whole legion of fans out there, and those fans are also high-yielding travelers, often. it's a real opportunity for australia, not just for the tourism industry, but for the overall australian economy. paul: the powerhouse u.s. team is widely picked to win a third straight title, their fifth overall. australia will be looking to go as deep as possible into its tournament after defeating world number five france in their final warm-up match. most fans want the fans own

likeness, but we will be watching the games on tv. that might be a problem for a fee for despite the growing popularity of a woman's game, football's government body is unhappy with some of the local offers it's been getting for broadcast rights. a blackout of the tournament was narrowly avoided in europe after a deal was reached at the last minute. the terms of that deal will remain secret, but it's understood is just a fraction of what was paid for the rights to last year's men's addition in qatar. the revenue shortfall is in helping the desire to achieve prize money parity in the men's and women's world cup. the total of 440 million in prize money was on offer at last year's men's tournament. this year's women's tournament the prize pool is 110 million. australia's footballers are among those on the disparity. >> is still offer women one quarter of prize money for men for the same achievement. paul: the fan zone is dedicated to the great moments in passed women's world cups. 20 years ago there was no prize money at all.

but achieving prize money parity will make it substantially more for broadcasting rights in 2027. paul allen, bloomberg, sydney. haidi: plenty more to come on daybreak asia. this is bloomberg. ♪

shery: breaking news out of

japan, exports rising less than expected for the month of june coming in at growth of 1.5%. for lengths -- still in acceleration from the previous month of may when it only grew 6.1 percent. import numbers plunging down 12.9% year on year. in fact, deepening the contraction for the previous month. this is actually led to a surplus of ¥43 billion, and this would actually be the first time in japan that they actually turn into the black when it comes to the trades surplus for the first time since july of 2021. the first we know that exports have really taken a hit from external demand stagnating, but the big fall on imports as well with perhaps that meeting demand domestically as well has led to that trade surplus of 43 billion yen. when it comes to those exports for different regions, a contraction for export of 11%

year on year to the u.s. actually buys them more than 11% year on year. exports rising 1.5% year on year. let's stay with japan because of bank of japan watchers have pushed back their beds for a policy change with less than 1/5 now, predicting a tweak in yield curve control at next week's meeting. our global economics and policy editor kathleen hays is here with our latest bloomberg survey and perhaps one reason we see pressure on the japanese yen. kathleen: it's been in the works for a while, the bank of japan not expected to move next week, it's a big change from the april survey when there were a lot of bets being made that after taking things over in april, having this first meeting, because the boj governor would decide to make a move as soon shall i. and in fact, the number we are seeing get back was nearly 40%, pretty good. but now, 82% looking at the july

meeting, think the boj is going to stand pat. the bets are growing on the october meeting. if you look closely, you can see that 28% see the bank of japan shifting, making some kind of policy shift, probably a curve control at the october meeting, if you add everybody that's looking at -- a handful see a meeting move in july, some people see it and i -- september, more than half are betting on the october meeting. they are also expected to raise their cpi forecast today from 2.3% in this fiscal year from 1.8%. that will be a big focus for investors as well. shery: what's driving this shift for investors question mark catherine: the governor. and he was taking over and people were talking about what would be the biggest challenge for the next boj governor, everyone said, communication. communicating what they intend, are they going to make a shift,

what do they think about 2% inflation being sustainable. what he has said is he's not convinced the inflation rate is sustainably and stably at 2%. recently, he said that the 2% cpi target is still some distance away, at least in those terms. when he looked he said, the headline numbers at 3.2. the core, which takes out fresh food pipe -- fresh food prices is way above 2%. the governor has made it directly or implicitly clear that the boj is afraid about raising rates to quickly and not being 100% sure that it's time to do so. that was a mistake in 2002 when he was supposed to move like that, they hiked and had to pull rates back again. so, there's a lot of caution there, and so hard he does not seem to be budging. shery: bloomberg's kathleen hays of -- ahead of the japan market open. tesla shrinking profitability in

the second quarter, putting its korean and japanese suppliers in focus, watch the asian peers of netflix after the streaming giant posted disappointing sales forecast. also, japanese stocks tied to tourism could be moving after monthly industry data show the number of visitors topping that 2 million mark for the first time since february of 2020. the market opens in sydney, seoul and tokyo are next. this is bloomberg. ♪

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shery: this is "daybreak asia" we are counting down to asia's

major market opens as we see pressure in the u.s. after hours etching after earnings from tesla and netflix and we just got data from japan as well, turning a trade surplus for the first time since 2021. haidi: as we passed these earnings, we are looking at the bank earnings, we are also looking ahead to job numbers out of australia looking to see that pullback when it comes to a search we saw in may. for investors to be contending with as we head into the start of cash trading. annabelle: that's right. certainly on the outside it does appear that earnings could be taking the biggest focus for us because we are seeing u.s. futures starting to slip throughout the session and that really echoes those results that came through from the likes of tesla, in particular. this is the open here for japan, korea and australia and at the outset, we are really watching those movers and after hours tesla dropping with its margins really being squeezed, some of its supplies and focus.

but also, netflix put out that sales forecast that really undershot expectations. we saw subscribers being out in the current quarters. some of those movers in focus, starting to weigh on sentiment as we also see the nikkei coming online to the downside 3/10 of a percent, even though we are still monitoring that weakness in the japanese yen. in terms of the data, we did see that balance of trade numbers just coming out the last 10 minutes. a surprise surplus in the course of june. certainly something that will come as a positive sign for japanese businesses, even though the latest boj survey has just come out and we also see economists expecting the policy pivot to come later on in the year around october. let's change on because in terms of what we are watching and the other markets, and korea, it's a focused on the supplies to tesla in particular, the big ones located, particularly the battery names. you're watching a cossack coming online just undershooting what

we see for the kospi. that is the tech heavy index. also monitoring the moves in the korean won because we've slipped away from a five month high here. some analysts also say that short-term rally that we had seen in the one is now coming to an end, and it is that dollar strength that we are starting to see come back into the session. let's change on because in australia today, as mentioned, we have jobs numbers that are due in the next hour. have material stocks in particular focus. we just at the production guidance coming through from minas in the session. we see it come online fairly flat. wheat is another big focus in the session because we saw a huge jump in the contract in the day prior up around the 9% mark. this is trading for weeks. that contract coming online. russia warning of safety ships to ukraine. a has pulled out of that black c. another commodity we are keeping an eye on this morning. shery: let's bring in our next

guest who recently upgraded japanese stocks overweight while downgrading china to neutral. with us now as head of investment strategy at bank of singapore. great to have you with us. let's talk a little bit about japan first because there seems to be some consensus on the optimism of japanese markets, especially if the rhetoric is now coming from the bank of japan that they will not be moving anytime soon. my question is, how much more room does it have to run? >> we think that we are probably halfway there next to the rally. the most interesting thing is the corporate reforms aspect of this rally. if you look at dividends up significant year on year and share buybacks up significantly year on year. it and if you look at this, and also the inflows from japan, and compare that to this, the second

half, this suggests to us that there are more to this rally that we've seen on the year. shery: what concerns you about china? >> we've been looking for a much stronger consumption after the reopening, and it really has been much more muted than we thought because there is much less stimulus during the covid pandemic from the policymakers. on the other hand, very weak export demand is still a very subdued property sector, every sentiment. i think we need to see a lot more stimulus coming from the chinese policymakers. haidi: this latest pledge to support chinese enterprise and given the same treatment doesn't make you any more enthusiastic that we could see the tides of change coming? >> i think it is an important step in the right direction, but

ultimately a lot more is needed it the chinese economy in a way of what we need from policymakers. local government financing vehicles, which has traditionally been china pushing through government support, they are in serious trouble right now. the previous government, demand-side support that we've seen may not be as effective going forward as they were in the past. these chinese policymakers need to find a new path to boost their economy and a lot more needs to be done in the way of monetary policy and fiscal support. haidi: our bond markets more compelling at the moment? >> we think so, especially the shorter end of the curve, in our view. they tell us that equities is in over their skis a little bit of this time, and the relative value is just not that

attractive at all. but, on the other hand, bonds on the long hand, we think that the optimism about this inflation may be a little bit too much at this point in time. really giving 4%, 5%, 6% view for good names and develop markets, we can see it. haidi: you mentioned gold is one of your positioning, is that because of the fact that year political tensions are going away anytime soon? there's a fair bit of uncertainty as to where the fed goes from here. >> we think that gold really looks good right now. we have a target of 2050. we expect a weaker dollar going forward. i'd as you say, remains to be the -- inset -- inflation may be flaring up, but that risk is still in the picture.

we think that benefit of diversification for portfolios is rather attractive. haidi: head of investment strategy at the bank of singapore, great to have you with us. let's get you back to hong kong. annabelle is looking up the movers and the reaction regionally to tesla. annabelle: that's right, and you can see here, it really is that move lower than we see for one of its biggest suppliers in japan and korea. we did have tesla coming out after hours. essentially that stock is lower today in the session, given its profitability. the company is really starting to feel the impact on its margins because it cut the prices of some of its vehicles in the latest reporting time. it's gross margin coming into 18.2% that was slightly below what wall street economist had been expecting. way down from 25% that it was one year ago. topping expectations, sales also beating slightly. that's the state of play for the

suppliers of tesla. let's change on. in after our trade, the other big focus was on netflix this morning, and that stock is also down more than 8% in after-hours trading. if these are slipping in the session. this is after netflix revenue forecast fell short of expectations and that does really suggest that the crackdown on password sharing, a new agile it, they are not delivering any sales growth's that analysts had been predicting. it had been doubled the amount of subscribers that had been forecasted nearly 6 million new people tuning in to watch netflix. let's change on because the other focus in the session is more on the commodity space. we just had the week contract coming online. is fairly flat. we saw it spiking more than 8% in the prior session. that was after russia essentially threatened ships that are sailing to ukraine in ports.

russia has exited the black seen grain deal. this is significant because it is for grain sales abroad. historically, this is what accounts for the poker shipments. in terms of market reaction we are seeing food suppliers in asia. that's more of a commodity trader. but moving higher in the session off the back. finally, commodities focus in australia. we also have bhp achieving its four-year production guidance for iron ore. it's targets for copper and coal as well. that stock just coming on a little bit firmer. others a little bit under pressure but fairly subdued move so far. shery: still ahead, we will dive into how slowing momentum in the global economy has weighed on the earnings of netflix and tesla and what that actually means for their asian suppliers. this is bloomberg. ♪

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haidi: tesla's margins shrink in the second quarter after took a toll on profitability. let's bring in our asia transport reporter who joins us in hong kong. we actually heard from elon musk

saying they could potentially cut prices more if economic conditions worsen. this is obviously the long-term strategy. are investors starting to lose patience? >> that's but elon said, that they are willing to sacrifice profitability for volumes. over the long-term, investors might not react that well. one of the things that made tesla so special was its high margins. in the recent two quarters, it's starting to contract, it's at 18.2% for this quarter, which is lower than what wall street estimated. if that trend continues, tesla will become like other automakers and investors may start to lose interest. shery: tesla still continues to make investments into other sectors like ai as well as their new cyber trucks. how's that going? >> elon has always been a big proponent of autonomous driving,

so, tesla's full self driving technology is still being tested, and they are crunching to data to see how they can improve the fst technology. the thing is, experts say it's going to take a long time to get it to a stage where it's really for full commercialization. there is a lot over safety and reliability. so, for that to become the next driver growth, that could still take a while. other technologies such as battery and new models, those are still in the works. we are hoping to see if they are going to really attract investors and attract customers when they are ready. shery: your transport investigator joining us. despite the fact that we are showing this electrification of the auto sector across the world, there may be one country bucking this trend, a unique solution at cut vehicle

emissions in brazil is threatening to put the brakes on a shift to ev's. flexible fuel cars powered by a mix of gasoline and ethanol are popular, affordable and locally made. a self commodities reporter joins us now to discuss our latest big take. how popular are these cars and how are they getting in the way of electric vehicles? >> thanks for having me. yes, they are extremely popular, nearly 85% of sales just over the past month were of these flexible fuel cars. in this popularity kind of gets in the way of electric vehicles becoming a better thing and priscilla. especially because authorities don't feel the same pressure to take dramatic changes in policy that would foster electric vehicles. haidi: what kind of impact are we seeing when it comes to actually emissions from brazil?

>> the flex fuel car is already lower or greener in terms of omission. it has lower fuel pipe emissions then gasoline only engine. but, the problem is that an electric vehicle running on an energy system would have half the admissions of the car and that's because the energy system in brazil already has a very big share of renewables. it could lag behind if it continues to postpone the kind of shift. shery: what would it take for brazil to actually join the rest of the world and shift faster to ev's? >> are people here that do believe that brazil needs to take that shift, they are pushing for brazil to invest more in charging infrastructure

or producing batteries locally, that would make electric vehicles affordable for the brazilian consumer. the problem is, brazil is kind of trying to keep a balance between courting those investments, courting other companies, especially chinese companies to do sorts of investments in electric vehicles in brazil. while still keeping the incentives that already has in place for ethanol and for the flex fuel cars. so it's tricky because it's not a definitive solution. it's not betting on all of the possibilities. shery: self commodities reporter joining us from sao paulo with this week's big take. take a look at commodities training. sugar futures have actually been pretty volatile this week, given that we had been looking for those improved outlooks for supplies coming from brazil, as well as india, and we have seen

money managers cutting their net bliss bets in the latest week according to cftc data. you can see a little bit of again therefore today's session after pressure earlier in the week. we are seeing wheat futures holding steady at the moment, but this after soaring as much as 9% at one point in new york trading, the biggest jump since 2012 with russia threatening ships sailing to ukrainian ports. corn also losing 3/10 of 1%. haidi: watching netflix shares slipping in that extended trading session, third quarter revenue forecast fell short of wall street estimates, but let's dig a little bit deeper, per -- chris paul mary joins us now, chris, as you said earlier, it's ahead scratcher because subscriber numbers look great. there better place than their streaming competitors when it comes to content pipeline as well.

chris, hopefully you can hear me, just looking at the market reaction in the after our session to netflix, it's a little confounding because the subscriber numbers were really positive. they have a pretty strong pipeline of content compared to their competitors given the ongoing strike. and we are starting to see perhaps more in the longer term, their fruits being born of the password sharing crackdown. chris: right, this is confounding because as you mentioned, the overall subscriber count jumped almost 6 million. the problem in the street -- what seems to be focus on is although subscriber count was of a percent at the same time last year, revenue only increased 2.7%. these new initiatives they have,

advertising at the crack on password sharing isn't yet transferring get self into real strong revenue growth in the stock has had such a huge run this year, up 60% almost so far this year up before today. i think wall street just expected a lot more. shery: what are we seeing in terms of the impact from the writers strike in hollywood and what do we expect from the content pipeline, especially coming from overseas markets? chris: one of the result -- revelations today was netflix expects its cash flow to be $1.5 billion higher than they originally anticipated to the start of the year, that's because they are spending less on film and tv production this year. that could change next year when the production resumes and they have to start spending again. they've consistently said and reiterated today that while they want an end to the strike, they don't really see a huge impact in the near term in terms of

their ability to put new content on the platform. haidi: there's a lot of uncertainty, shery mentioned the ongoing strikes, where are we at with that? you said two sites are not even talking at this point, are we in for the long haul? chris: it seems that way, no talks going on between the studios, the writers or the actors. very fierce words coming from both sides. and, the actors made it clear recently, they are asking for a lot, 11% increase in their paste for the first year, share of streaming revenues as an addition to residuals they normally get, other issues, artificial intelligence, how they are compensated for auditions. a lot on the table and no talks going on. it could be quite a bit of time before this is resolved. shery: chris palmeri who leads

bloomberg's media and entertainment coverage with the latest on netflix. we have more to come on daybreak asia. this is bloomberg. ♪

>> we are making tough decisions that are driving the strategic evolution. given both these factors, issue, no surprise that we are going to a low. i remain fully confident that we will deliver the target of creating significant value for shareholders. haidi: goldman sachs ceo speaking on the first earnings call. shares actually closed higher despite profit plunging. one of the weakest quarter since he took charge. let's get more from our asia investing editor who braced for turbulence. this was a noisy report, that was the word that was sort of

used. what stood out to you? >> these were generally pretty disappointing results. 58 drop in profit was the steepest decline among its peers on wall street. as you mentioned, among the worst times of earnings under the david solomon era. and this is really driven by three main things, slow, dealmaking, and then we had some write-downs on the real estate book in write-downs from its business. none of this really came as a surprise because goldman sachs had been flagging this for weeks to manage expectations for the bad earnings on the day. and that probably explains why this shares actually rose on the day, up 1% at the end of the day. perhaps a sort of a relief rally that it was even worse. some aspects of the warning work -- earning were better than expected. it didn't match what was expected. there was a bit of a pickup in

equity underwriting, and trading wasn't quite as bad as the bank at flag. analysts describe the earnings results is noisy overall, but they sort of cap the wall street earnings season on a bit of a sour note, really. shery: given the challenges you are talking about, how much pressure does this put on david solomon? >> david solomon really has to convince investors i think the worst is over. this earning time had the kitchen sink feel with all of these write-downs being booked in the quarter. he sort of saying, this was a bad quarter, but really it sets the stage for the pickup and the second half. he did mention that the dealmaking environment is picking up as well. i think there was a theme and austria earnings, that the economy is not doing as badly as people had thought. interest rates are peaking, inflation is softening, that really sets the stage for

improvements in the markets business, improvements in dealmaking. and i think some of them will really be counting on that. more broadly speaking, i think his big challenge remains in the goal of stabilizing earnings going forward. he tried to do that with the consumer banking. that didn't work, now he's trying to do that with asset management. so really analysts and investors are going looking forward to whether that pays off in the future. shery: our investing editor with the latest on goldman sachs. given the lowered expectations over the plunge of goldman, we actually saw that stock gaining ground in the new york session in the kbw bank index closing the highest since march. you can see the after our session we see the price risk and the nasdaq 100 futures, we are seeing tesla sinking, netflix seeking, questioning netflix on their sales and

forecast missing wall street estimates. we are seeing the russell futures are holding steady at the moment. this as we had seen the dollar also gained ground in the new york session. the best day since july. we are not seeing a lot of change in the asian session. we have more to come on daybreak asia. this is bloomberg. ♪ bridgett is here. she has no clue that i'm here. she has no clue who's in the helmet. are you ready? -i'm ready! alright.

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annabelle: this is "daybreak asia", i'm annabelle droulers. we are 30 minutes into the

session and there's a lot for investors to consider as we have trading for japan, korea, australia underway in terms of what is the focus. there's two different main factors we are keeping an eye on this morning, earnings came out after the bell, there's outlook for central banks. kicking off with earnings because we have tesla reporting in after hours. essentially we saw that impact of price cuts on its key vehicle lineup, starting to really pressure its margin. that stock is down more than 4% in after hours. the other big mover is netflix because we saw it putting out a weaker than expected sales forecast, even though subscriber numbers jumped by substantially, more than double what had been expected. not enough to lift investor sentiment. in terms of market reaction, you can see nasdaq futures are really flipping as we get trading under way down six sensible percent. the broader sentiment for the msci asia-pacific index is flat today. that tells us that investors are

focused on something else in the session as well. that is the expectation around central banks because overnight we had the inflation number coming out for the u.k. and it essentially we saw it dropping the most in 15 month period coming back to the weakest level we've seen in 15 months or below 8% on the headline figure. what exactly that tells us, perhaps the boe does not need to be quite so aggressive moving forward. that shows projected terminal rates. you can see the boe perhaps getting closer to the end of its tightening program as is the fed, the ecb. these are all quite positive factors that traders are taking in stride. i think that's why you are not seeing so much of a full on effect from the negativity around this earnings after the hours. haidi: potentially positivity coming out of china. we are hearing from tencent ceo saying that china's new guidelines on the private sector economy would drive further

development. the communist party of the government have pledged to treat private firms the same as state owned enterprises. for more, let's bring up stephen engle who joins us in hong kong. we seen the positive response from -- of tencent. huge and book asian's for companies like his, but do we know what specifically they're going to do to boost confidence? stephen: they are rolling him out, that was from the statement of the chairman of tencent through state-run cctv, the big rock caster. clearly the chinese government wants to get this message across that they will be supporting the platform economy with more vigorous policies, and also overall, the private sector, which is dominated by consumer goods and services and it's a big pillar of the chinese economy, until the regulatory crackdowns that have lasted for some three years. they've already rectified alibaba, anta and others, and

they find them, now they want the confidence to come back. they are essentially putting on the charm offensive. you asked about specifics. what we are getting is, late yesterday a joint statement from the parties central committee, and also the state council -- state council. they put out a statement vowing to treat private companies equally to state owned enterprise -- enterprises. it's going to be a hard task because old habits are hard to die, especially those in the positions of power at state owned enterprises. we will have to see on that one. but the government statement say governments at various levels are encouraged to invite entrepreneurs for consultation before drafting and evaluating policies. that would be good if they are given a voice on policy, obviously. this time the statement saying the government will help private companies which share listings, bond sales in overseas expansions. again, it short on specifics

right now. we've had pledges like this. last week the premier met with some of these platform economy leaders, we also have the top planning body talking up the platform economy, they need that job creation that the platform companies provide. but again, back in december, we also had the politburo talking up the private enterprises. so, again, the economy, we could bring up the gdp, the economy is sputtering right now, and there is a confidence crisis. there were efforts earlier this week from a 11 or 13 different government agencies with 11 different initiatives to try to boost the consumption of white goods, appliances and things like that across china. but it's more focused really on production efficiencies and things like that rather than direct cash handouts that we get people to go to the stores or go online and buy things. that is the point that michael

pettus, a professor of finance at peking university. we have a tweet he put out yesterday about those consumption stimulus measures, and the efforts by the government to do this. he says, of course these measures once again exclude the only one that can sustainably work, direct or in could -- or indirect income transferred to the household sector. that means cash handouts. he goes on to say it seems that everyone wants to be seen trying to boost consumption, what -- but no one wants to bear the cost of actually doing it. there's lots of speculation that they are going -- the government will roll out some stimulus measures to get people to take out mortgages again. scrap some of these restrictions on limitations if you go in for a second margin -- mortgage. this helping out the high cost of borrowing to buy a house to get the property sector, which is been battered as well. lots to do, are they doing

enough is the big question. shery: our chief north asian correspondent stephen engle with the latest on china. we are waiting for the earnings results from tsn c, which has benefited from the ai frenzy this year. let's bring in our north asian tech team leader. what are some of the key points that you will be watching in this set of numbers? >> i think we will focus on whether tsmc is going to revise itself for the outlook. it has said that they expect the four years this year to diplo to net single digits in u.s. dollar terms. so i think investors would be eager to see that things may be looking up a bit after the frenzy over ai, chatgpt like services. but at the same time, xml, which

is a major part of tsmc mentioned that they see there is some shout out of the uv demand. that is their customers are delaying securing their most advanced equipment to make chips. i think investors will be interested whether tsmc will trend -- trended spending policy amidst the weakening global economy. haidi: once the chinese government trying to do to help local firms develop their ai capabilities question mark >> -- capabilities? >> the chinese government, the ministry of industry and information technology came out yesterday saying that they would help computing infrastructures to help our companies develop their ai capabilities. and by completing infrastructure, it was the

chinese government that would help build these hyper scale data centers to offer computing power to firms who are looking to build up their ai capabilities, to develop chatgpt like services. haidi: bloomberg's north asia tech team leader there with us. former chief investment officer of singapore sovereign wealth fund is planning to run for president. is candace's cp it's him against his one time superior during elections that happen in september, the head of his nation told us exclusively why he is seeking the position. >> i would like to give the people of singapore the opportunity to exercise their right to vote. we have had five presidential terms, three were work overs, the people of singapore do not want a fourth work over, so i'm

throwing my hat into the ring so that there is a contest -- contest so that the people of singapore can choose. the second reason is, the president and singapore is quite important in terms of safeguarding our reserves. i've spent my entire life and entire career in helping to build our reserves. so i think i'm in a good position. haslinda: you are running against a clear frontrunner. both candidates are seen to be one in the same, both very close to the establishment. what choice is there? >> there's a difference between establishment and political independence. i have 45 years of public service, i'm very proud of having done that.

but throughout my entire public service career, i did not and i do not belong to any political -- any political party. the presidency has got to rise above politics, so i am politically neutral. haslinda: do you think the voters will vote along racial lines? >> i do not think so, i think singapore is evolving and, hopefully, as time goes by, we should not allow race to divide the country. i think singapore must stand united. haslinda: the reserves have been a hot topic in singapore. singapore is wondering why the reserves need to be kept secret in terms of the amount, how do you view that, is there a reason why this citizen should not know how much the reserves amount to? >> the reserves of singapore is our financial defense.

it forms part of the total defense of the country. because, the reserves either safeguard our future in terms of possible war, in terms of very severe crisis, in terms of time where the stability of our currency can be undermined. so, when it is as strategic is that, it's not in the national interest to disclose the total size of our reserves. haslinda: singapore is currently transfixed by a corruption case involving a cabinet minister. unusual, rare, especially in a country that pays its ministers among the highest in the world, how are you reading what's happening in the country? works we have extremely high standards of governance, we have

extremely high standards of integrity for people in political leadership and in public service. this is the foundation behind foreign confidence in singapore and the trust of the people of singapore. so we hold ourselves to such high standards of encrypt ability, incidences as such is what happened recently about to arise public interest. the question is, how do we handle these situations? so i'm very proud that our prime minister has done the right thing. singapore president -- shery: singapore presidential candidate speaking to haslinda amen. changing trends in the gaming and entertainment industry and what it means for casino operators. we are joined to discuss. this is bloomberg. ♪

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shery: macau casino is expected to return to almost 70% of their pre-pandemic profit in the second quarters as travelers returned to the gaming.

arrivals were flat in june but the totals were higher -- higher than any month in the first quarter. macau has been benefiting from a recovery in outbound tourist. the steady increase since last year is still far below numbers seen before the pandemic. haidi: let's stay with gaming. a net profit of $83 million was reported in the first half of 2023. that's an increase of 57% compared to one year ago. the company runs a casino in cambodia's capital and joining us exclusively as the executive deputy chairman. always great to have you with us to talk through this and those numbers on the broader recovery. let me start offer china. have you been encouraged by the numbers, have you seen when it comes to chinese visitor flow >> we have been very encouraged, as you look at inbound traveling to cambodia, a recover to about 75%

of 2019 levels. but the arrivals from china has been a bit sluggish, lagging behind 31% recovery rate. but what's important for us is not so much the numbers, but the composition of the travelers. about 75% of these travelers into cambodia, for the first five months from china are actually business related travel. so that is where we get the good amount of our business as well as the tables and our entertainment facilities. so, yes, we are encouraged by the inbound recovery of chinese station. but of course looking forward to a full recovery, which will be able to -- i think like the rest of the parts of asia is still a bit sluggish and we hope that recovery will come into this part of the year. haidi: it is pretty key to

cambodia in a big driver when it comes to vip business, are you more concerned about that, do you also think that in a mass-market revenue will pick up if the numbers out of china are as good as it gets? >> it will definitely pick up, if you look at fbi to cambodia, chinese investing, you have a large population of chinese especially, in for a lot of these chinese businessman, please are longer and stay longer and they spend more, and really at night, that being the entertainment hub it is natural that they are attracted to the property for both gaming, the entertainment festivities have to offer. so when china rebounds fully to pre-pandemic levels, they are very confident that the numbers

will outstrip the 2019 levels. shery: it's interesting what you say about chinese people spending more. it hasn't been as smooth as expected. that hasn't necessarily hit our consumer spending patterns in gaming and in just consumption of entertainment abroad. >> i think relatively chinese business travelers tend to spend more than the chinese tourist travelers. because of that, we find that their quality of the average sizes increase, even though the numbers in terms of headcount are not a strongest pre-pandemic. shery: we are seeing this move

in more asian countries, more openness towards gambling, towards gaming. how is that going to affect the outlook for your company, and do you have any expansion plans? >> definitely, perhaps the focus or the emma graphics going to gaming our not different from four or five years ago. generally with the travelers looking for is a destination, not just solely gaming. which is why our next development is so important to us. because that will bring to us the necessary entertainment and non-gaming facilities that will attract travelers to china to cambodia not just for a gaming, but for the entire entertainment experience. so we are looking at starting off at the podium block, which is about 16.

it is close proximity to --, and they will offer a lot of entertainment facilities. so it is planned such that about 93% of the floor space is dedicated to non-gaming facilities, so we really want to make it the entertainment destination for travel within the indochina region. haidi: always great to have you with us. be sure to turn into bloomberg radio. you can hear more from the newsmakers and get in-depth analysis. we are broadcasting live from our studio in hong kong. you can listen on bloomberg radio plus or bloombergradio.com. this is bloomberg. ♪ okay. i'll work on that. the queen sleep number 360 c2 smart bed is now only $899.

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oh, oh, oh...i'll be the judge of that. oh, that's nice... oh!! searchable, verified reviews. that's better than the ham, and i've never said that. booking.com booking.yeah shery: mainland investors are buying the most hong kong shares in almost two and a half years. for more, it's bring in bloomberg's asia stocks reporter. what are we seeing in terms of mainland's interest in hong kong shares and why? >> it mainland investors want 16.5 billion yuan -- 15.5 hong

kong dollars -- 16.5 hong kong dollars. yesterday was the most sense, lick checks be made with traders. they said they tend to buy. there's a bit of bottom fishing. they buy on volatility and subsequently sell. but the volumes in the amount that was bought would point to it being more institutional than retail. this is speculation, but maybe they were buying ahead of the news that we had overnight about china's commitment to private enterprise, but that's something that we haven't confirmed yet. >> we've heard pony ma -- haidi: we've heard pony ma of tencent come out and enthusiastically support this pledge. are we expecting much in terms of this reaction? >> not really, i would say

there's cautious optimism. the nasdaq is dragging at the end of the day 0.7% higher. there have been vowels or commitments to private enterprises. all of that signaling is very important, especially after that big crackdown we've seen on tech and private enter chuck touch enterprise in china. but it all together and you see a shift in government sentiment on private enterprise, but people really want to see how that's going to be implemented or what measures will be taken to relax regulations for the sector for the industries for all the players involved, of course, more than these vows, people are looking for real economic support measures in the form of relaxation of home restrictions or more infrastructure spending. i think that's going to get the market going more than about private enterprises which has been there since december when the politburo announced --

discussed this already. haidi: just more signaling with a crackdown on tech might be rounded out. our bloomberg asia stocks reporter there with the latest, and this is a picture of trading across asia as we get into the next half hour we see the start of trading across mainland markets in hong kong. pretty make session. cautious is how i describe that sentiment. u.s. stock futures slipping after we saw that disappointment in the investor reaction on netflix and tesla. fluctuating trade when it comes to japan. a little bit lower when it comes to korea as well. much more to come. this is bloomberg. ♪ whatever you see, are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns...

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hard way for the past two years during the pandemic and what i mean by the hard way is we have all seen how key industries in

europe in the u.s., especially the industrial, medical and automotive sectors, have suffered from a shortage of semi conductors. david: this is, uh, my kitchen table, and it is also my filing system. over much of the past three decades, i've been an investor. the highest calling of mankind, i've often thought, was private equity.