it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. shery: we are counting down to asia's major market opens. haidi: the top stories, asian stocks look prime for early

gains. we kick off a week dominated by central banks. the ecb and the fed set to hike while the bank of japan remains the outlier. spain is headed for political gridlock with the socialists seen as having a better chance of arming government. chinese regulators meet with global investors, stepping up beijing's bid to boost market confidence. shery: take a look at how u.s. futures are trading early in the asian session. not doing much after the s&p 500 and the dow finished mixed. talking about pressure for the nasdaq 100. put it into context, the s&p 500 above 5% away from its peak. it is all about what the fed will do this week. we have been watching treasury yields. they were under a little bit of pressure friday with the 10 year yield and the two-year yield. the 10 year yield was around 383 and we are going to watch where that goes from here.

it is all to do with earnings as well because it will be a heavy earnings week. 170 companies on the s&p 500 reporting this week. that will be about 40% of the market cap and includes giants like microsoft, meta, alphabet as well. today we are seeing oil under a little bit of pressure around the $76 a barrel level. this is after four weeks of gains already in a very low volume trading session. of course we are in the middle of summer right now. haidi: yeah. i'm watching some of these leading indicators of economic expectations and confidence in australia. we are seeing some weakness coming through. quite a bit of weakness when it comes to that index, falling to 48 from 50.3 in june. this is the lowest reading since december of 2022 and falling firmly into contractionary territory. employment also falling to the lowest since december 2022.

prices charged at the highest since january 2023. so those inflation factors are really pushing through. the contractionary number is interesting given expectations are we will see perhaps a more dovish mood from the rba going forward. bloomberg economics is even looking at a potential rate cut by the time we get to 2024 next year of course. the manufacturing pmi falling to 49.6. that services component also seeing weakness, falling from expansionary territory to 48 in july. clearly this will be one of the further headwinds that the aussie dollar faces potentially from here. westpac already sand the aussie could be capped in terms of upside at 69 in the near term given these uncertainties over the chinese growth story and the stimulus that may or may not be forthcoming from beijing. nonetheless, futures are pretty optimistic at the moment.

kiwi stocks are trading flat. nikkei futures off about .2%. of course it is a big week for the bank of japan and other central banks. shery: let's take a look at moves to watch this week. wednesday the fed is widely expected to resume rate hikes after pausing its 15 month tightening campaign in june, leaning on the uncertainty of monetary lags. chair powell could be signaling a wait-and-see approach. ecb also expected to hike again. traders see the bank boosting borrowing costs to a peak of 4% in september. this would mean two more quarter-point moves starting with this week's decision. the boj will make its policy call on friday. investors waiting for any dental policy tweaks to come with that higher inflation outlook. we will also get tokyo cpi prince on the same day. in chile, investors expecting monetary easing to kick off with a jumbo cut friday.

policymakers hoping a strong move will reduce risks of recession. indonesia expected to resume its pause tuesday for the fifth consecutive month. let's discuss more on these divergent monetary policies and the broader economic implications with qian wang. great to have you with us. it seems we may be headed towards this picture where emerging-market central banks are again leading the pack in those reductions in weight hikes and the rate path forward for these economies. what are the broader implications for the global economy when you have advanced economies not going as fast as the yen? qian: i think when you are saying central banks, we think the fed is close to the end of the hiking cycle. so, i think many of the emerging-market is still waiting to confirm that the fed is headed down. then they will probably start to

count interest rates towards the end of this year. many of the asian central banks, that is where we expect bank of korea, bank of indonesia, we will be expecting a recount towards the end of the year. one of the things in the emerging-market is they have hiked the interest quite a lot during this cycle. they probably have a lot of cushion. even know we do not expect the fed to pause interest rates until 2024. i think emerging markets should be less severe in the previous round. shery: so you think asian central banks can afford to actually wait out the fed and will not have to move faster? we are seeing the downside pressure on those economies. south korea's gdp numbers are coming up this week as well. what can we expect in terms of how resilient these economies are and how much longer and a

way to move the other way? qian: for example, bank of korea, we are expecting them to cut as early as october this year. bank of urea -- bank of korea holds in june and it comes with a left's -- less dovish stance. there is rising growth and financial stability risk. i think they are pondering went to start a cut they cannot afford to cut before the fed. i think many in the emerging market wants to make sure the fed is done. haidi: how much of this really depends on what happens with china? if stimulus is more forthcoming, the productivity of those stimulus measures, and if they can get recovery back on track. qian: i want to say we have not given up policy support from

china. i think the economy, especially given second-quarter disappointment, this is where the economy is really praying for policy support. so we do see increased urgency for the government to come up with something later this week, a more comprehensive stimulus package. do not get that, probably see the economy start to recover. i am not seeing a lot of upside but at least recover towards the trend in the second half. that will be somewhat positive news for the emerging-market as well as the rest of the world. however it may disappoint again. in that case i think this is a downward surprise not just for china growth but the emerging-market, especially asian neighbors. haidi: would you expect that

announcement to come from the politburo meeting? is there a sense that even if there is more upside momentum and confidence, global investors need to make peace with a structurally's lower for longer level of chinese growth? qian: yes. i think this is our long-held view, that china is in this persistent and protracted downturn. given weak demographics more unfriendly external environment. what we have been saying since the beginning of the year is any upturn, it will be limit constraint. we need to get used to china may be able to achieve 5% growth but down the road towards the end of the decade we need to get used to 3% growth in chinese potential. shery: where do we need to get in japan's inflationary picture for the boj to become double to move?

-- comfortable to move? qian: central banks need more evidence in the data to convince them there is a rate. the fed probably needs more downward inflation. boj also needs more evidence in the inflation. being able to make sure inflation is below 2%. any to make sure 2024 wage growth is still solid. they need to make sure global economy comes out from a recession. only if they see that, they will be ready to move the policy rate. i do not think the policy rate move will happen anytime in 2023. but yss is -- ycc is a different story. they could make a gradual adjustment, especially when there is less pressure from the market. shery: it seems traders have

been very much focused on what is happening with the japanese bond market, how distorted has become. market pricing, liquidity. are you concerned at all? qian: i think as long as the ycc is there, it will continue to impact the market function, impact the liquidity situation. so i think that is why. i do think even though at this moment there seems to be mass-market pressure for the boj to move, the ycc to think about what happened last december. there is huge pressure in the market. even of the pressure is much less, i would say it is a good window for the boj to make some gradual adjustment. this could potentially be better than being forced to buy the market, which could be very

messy. haidi: qian wang from vanguard group, great to have you with us. appreciate your time. investors are very much watching whether the fed will derail the bull run in u.s. stocks in green right -- a big reefer central bank watchers and bond traders. what are you watching out for? garfield: a lot of volatility. precisely because we have this very pivotal week for rate expectations, at least the way it is set up. the fed's surprise to the honkers side last -- hawking side last time. the market this time seems to have decided it is going to

surprise to the dovish side with a dovish hike to fall that hawkish hold. that is pretty much the consensus. i would tend to expect there not to be a lot until the fed, precisely because it is such a big moment. there is not a lot in the way of data that is going to have a strong impact outside in australian the inflation data that we do get this week, which will have a lot to say about what the rba does. what that will not have a major impact globally. everybody is waiting for that named last hike. when is it going to be? is it going to be this month for the fed, and is it going to be september for the ecb? so, what indications will we get from the ecb when they make them? shery: not to mention of course

tons of earnings out this week. 170 of the s&p 500 companies reporting results. it seems the earnings outlook is getting better? garfield: yeah, very much so. that's a big part of why i would expect even if we do get a more hawkish central bank set of decisions and commentary, that equities are likely to ride that out more strongly. that very picture, we have gotten economy, the u.s. economy data is strong to expectations. and we have these expectations of strong profit growth returning for companies. that both acts as a spur to the fed to hike -- not to hike, but to further hikes, as well as sort of safeguarding equities rally against that. you might get a bit of a selloff

initially if powell comes out and is hawkish. but then i would expect equities unless earnings are overall very disappointing. equities troubled that off and say yeah, the fed is not cutting off yet because the economy is doing well because they face that risk from the fed of further rate hikes to take up yields. so that profitability outlook is very key for assets overall and could even play into how the fed, and more broadly, how central bankers globally are looking at things. if they can see that companies are coping so well with the current level of interest rates, that they are returning to profit, well then, that's certainly going to encourage central banks to keep interest rates high and continue taking them higher until they are

certain they have tamed inflation. that is their mission. shery: garfield reynolds there. coming up, former boj deputy governor masazumi wakatabe tells us why he sees no reason for governor ueda to act on the yield curve control program for now. first, an update on the spanish general election as neither the right or left wing blocs win enough seats for an outright majority. this is bloomberg. ♪

haidi: spain's prime minister was denied the conservative opposition a victory. neither side has an outright majority. ben sills joins us with the latest. where do we go from here? is it a period of prolonged gridlock? could he potentially get a vote of confidence? ben: both of the candidates are declaring victory tonight. but there is only really sanchez that has any possibility at this point of actually pulling together the votes he needs to start a new term.

the center-right people's party have got 170 votes between them, but that is a handful short of majority but they are not going to find any more friends. sanchez has good relations with a lot of the separatist, regionalists parties. he could potentially do that. tomorrow morning we are going to start the negotiations and maneuvering. both leaders are going to be trying to act presidential but it is very much sanchez who has the upper hand. shery: i can expect market investors to not thoroughly like this gridlock and uncertainty. what does it mean in terms of the economic outlook under sanchez? ben: that is a good question. analysts have been recommending investors buy spanish bonds in the run-up to the election on the assumption the pp would come out on top and you would have a more economically liberal bowl -- liberal, pro-market in place.

he's not averse to a populace move if it will suit him politically. that will not happen. but he has been operating with minority governments, kind of coupled majorities ever since he first came to power five years ago. so in that respect it is nothing new. pedro sanchez looks like a kind of temporary prime minister but he has been there quite a long time now. haidi: ben sills there. let's get you the other political stories we are following. thailand's third biggest party ruled out joining any coalition that includes the pro-democracy move forward party. the thai leader says he's conveyed the message to the

party which is leading coalition talks. he was the second-biggest winner i nmay's elections, after move forward. the philippine president will deliver his second state of the nation address later monday. the philippine leader says he plans to present a performance report to the public and lay down his priorities for the coming months. one of asia's best-performing economies amid domestic challenges that include inflation and elevated borrowing costs. shery: bloomberg has learned chinese regulators met with global investors as a government steps up its bid to moose -- boost market confidence. for more let's go to john liu joining us from taipei. what do we know happened in this meeting? john: we know representatives from firms including wahlberg pincus, the company spun off --

they met with the deputy chairman of the chinese security regulatory commission over the weekend. they were asked what china could do to improve the environment for foreign investors in china. they responded by saying that listings overseas should be facilitated, that m&a should be facilitated. things he would think venture capital and private equity would be looking for. that comes as there are many questions around how dedicated china is to making the local environment suitable for foreign investors. that has come up because of the investigation of the consulting firms, because of the anti-espionage laws, lack of access to data. all of those things have thrown that commitment that china has into question. haidi: of course now the politburo meeting.

is this the likely avenue where we hear about more substantial stimulus for the economy? john: the politburo is made up right now of the 24 most powerful politicians in china. they meet once a month. in the month of july the meeting is traditionally about the anna made it if there is going to be big stimulus, if there is going to be a big action taken, it will come out of that meeting. it will be those 24 people to approve it. we are on the watch out for what might be announced post- that meeting. haidi: the u.k. foreign secretary postponed his planned trip to beijing. the top diplomat for the eu also has had trip disrupted. there is a great deal of uncertainty when it comes to the foreign affairs side of things due to the foreign minister still not having reappeared. john: i think that case --

obviously we do not have much details, if any at all. all we have heard officially from the foreign ministry is that the foreign minister could not make the trip to the foreign ministers meeting because of health reasons. we don't have info -- we don't have more information. as long as he remains off the stage i think diplomacy for china will be more complicated. i am not sure that that situation says anything more broadly about the ability of xi jinping's government to lead the country. but it is something we are watching very carefully obviously the state of diplomacy will have a huge impact on the country. haidi: john liu there joining us today out of taipei. much more to come. this is bloomberg. ♪

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haidi: take a look at fx and we are seeing some really interesting trading. so much of this really depends on where we see from the dollar which saw its best week in five months. and of course where the fed goes from here is going to determine whether we are at peak dollar weakness for now. the yen rally is fading as well, extending losses from friday and a little off morning as we get into the boj expecting coldwater 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. xfinity rewards creates experiences big and small,

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haidi: a bloomberg contributor says inflation targets in the u.s. educate over the next five to 10 years if should be moved closer to 3%. the funds management year also gave us his predictions when it

comes up to the upcoming fed, ecb and england policy decisions. >> all three will hike by 25 basis points, that is where the commonality will end. i think the fed will come across as dovish, the bank of england will be hawkish, and the ecb will be in the middle in terms of board policy guidance. >> fed coming down is a question we are leaning on. we are you on that now? >> if i go to your framing, which is to adopt excessive data dependency and if i stick to a 2% inflation target, then they will keep open the possibility of a september. if i go to a different framing, which is a longer-term framing that looks at how the u.s. economy functions, then it should be one and done. the trouble is we have all been pushed into the short-term framing, where it is almost

absurd that we talk about data dependency with policies that add to longer variable lag, but that is where we are. >> what we really are is trying to measure some form of algebraic plug-ins that lead us to a phrase restrictive, or super restrictive. are we super restrictive right now? >> we are restrictive, not super restrictive. it brings you back over and over again to a question hardly anyone wants to talk about for understandable reasons, which is what is the right inflation target for the world we are living in today? for a world that i believe is deficient aggregate supply, not aggregate demand where we had been. do you want to talk about that issue or do you want to push it back as long as you can? i think central bankers for understandable reasons because they have been missing that

target do not want to talk about this now. haidi: a bloomberg opinion columnist there. take a look at the set up as we are half an hour away from the start of cash trading in australia, new zealand trading is already underway, counting down to the start of trading in tokyo and seoul, quite upbeat. point for a 4% higher in aussie futures. gains when it comes to kiwi stocks. more broadly, asian equities primed for early gains, sentiment could turn more cautious when we get to the start of trading in china given that we are awaiting potentially more stimulus news to come out of the politburo meeting and concerns we are seeing equity outflows from the chinese market as global investors lose confidence and patience waiting for the stimulus. nikkei futures trading in tokyo in advance of more than 1% indicated after a report made on

friday boj officials see little urgent need to address of the side effects of ultra-loose policy, so expecting down expectations of ycc for the end of that meeting to start to play out when it comes to sentiment. potentially that blows through onto the yen given we have seen a recovery bouts for the u.s. dollar. shery: elon musk tweeting over the weekend his social media company is getting rid of its bluebird logo and possibly the twitter brand itself. it joins us with the latest. what would this mean? >> it is a corporate rebranding, and already there. we heard over the weekend from musk and multiple tweets and one photo of himself where he crosses arms saying take it as you will, x will be the new logo. he issued this picture of a flickering x over a space-age

black background and has polled twitter users over whether the x should be black or blue. musk has never been a fan of the iconic bluebird logo and he said in a recent brief that it should have been done a long time ago. quote, we are cutting the twitter logo off the buildings with the blowtorches. musk has done a lot of changes since taking over the company, and it just six months after he acquired twitter for $44 billion he merged the company with x corp. the new ceo has tweeted out the x stands for connectivity, ai powered that they will be going forward with. musk has made a lot of changes since taking over twitter, many of them have not done much to increase flow.

he tweeted earlier that flow is still negative, a roughly 50% decline in advertising revenue and on corporate debt, without air -- but now there is a new level of threat. meta announced at the reds last month, and those loyal to the twitter platform are raising criticisms that they do not like the idea of just disregarding the identity of the prior company in this way, but the x logo is being prepared, and according to a musk tweet is imminent. haidi: elon musk wants to do something about rising interest rates, so he is changing financing options if you want to buy tesla. >> he has been a harsh critic of the fed and increasingly a high interest rates, which affect sales of his car. he indicated at the july 9 earnings call for tesla bet he was going to be offering something such as this, and now it has happened.

tesla starting to offer 84 month auto loans for all of its vehicles, now an additional option beyond the previously offered loans of 72 months or six years. he has said when interest rates rise dramatically, quote, we have to reduce the price of the car, because the interest rates raise the price. he has also in the most recent call talked about discounts they have offered. investors are crazy about that. he has also said he will offer steeper discounts if the economy takes a downturn, but this is the latest act to appease those potential tesla buyers concerned about price, offering them a lengthier financing option. shery: su keenan with the latest on tesla. let's get you the latest from the corporate front. bain capital has agreed to buy a 90% stake the adani family holds

in an indian china vanke. the investment firms says it will purchase a stake in the housing company. bain has committed 120 million dollars in private capital and make available a $50 million liquidity line in the form of nonconvertible ventures. wanda group founder has sold a 49% stake in its investment arm to raise funds for a debt payment -- four debt payments to come forward. a bout the stake for an undisclosed price. wanda plans to use the proceeds to repay a $400 million bond that was due sunday. alibaba says it will not sell any shares in ant group as part of a proposed purchase to hold

onto with 33% stake. ant group continues to be a strategic partner and announced a proposal to repurchase as much as 7.6% of its equity a day after it was fined $984 million by chinese regulators. up next, we preview the upcoming bank of japan decision with the former deputy governor masazumi wakatabe. this is bloomberg. ♪

haidi: japanese markets opening at the top of the hour, 20 minutes time. a big week when it comes to japan assets, although their art manage expectations as to what to expect from the bank of japan. a report suggesting most of market watchers are not expecting much urgency for the boj to tweak ycc despite more elevated levels of inflation in recent prince. we did have a pretty good week when it comes to the greenback, so calling into question whether the recent bout of dollar weakness has perhaps piqued -- p eaked. singapore nikkei futures looking positive, looking like we will get again at the start of cash

trading of about 1%. let's bring in our next guest to says the bank of japan does not need to tweak its yield curve control at this week about the biggest meeting and is more worried about fiscal rather than monetary policy. with us now is masazumi wakatabe, a professor of economics at los angeles university and former deputy governor. also joining the conversation is kathleen hays as well. great to have you with us. you think there is too much focus on monetary policy. do you think the government needs to do more fiscal in order to translate the momentum we are seeing into structural growth? >> i think that right now that monetary policy is doing their job, so that the outlook is for the boj not to change, but that is the other issue that the

japanese economy faces. market policy itself cannot only -- monetary policy cannot -- risk. >> that is the big question down the road and something that will be discussed at this meeting. we do know that they are expected even with that data about fiscal policy to raise their inflation forecast for the fiscal year two -- to 2.3%. the main thing we are hearing from governor ueda is that 2% is not sustainable. what do you think he has to see to say, yes, it is finally there? >> in the sense that the bank of japan has achieved the inflation target at this moment, but i think the big question is sustainability of maintaining

the 2% inflation target so still, i think, if you think about probably the boj will revise the forecast for developments upward, but i am not quite sure that is going to be sustained from the yard 2024 to 2025, so you will have to see not to more recent projects, but the 2024 and 2025i think the forecast. shery: and yet traders continue to bet that the boj will eventually have to move on its ycc as this chart shows. what can we expect in terms of the boj trying to clamp down on speculation that they will move? >> well, it's -- the ycc is an

interesting instrument tool. all of this is speculation, but what the boj can do is to clearly communicate their stance to the market, which is quite difficult, but i think there is speculation that the boj would change their policy prematurely. the boj has two address that problem, and i think governor way to -- ueda has been addressing the matter forcefully, but they are always speculations in the market. you cannot really wipe out speculations as long as you continue ycc. shery: in the meantime, will the japanese yen be the biggest loser, and how problematic is this? >> well, i think you do not

really want to speculate on exchange rates, but currently i think as long as the boj is maintaining its market policy, unless exchange rates move rather quickly in a speculative manner, that should not be the concern for the boj. between the bank of finance and the minister of japan, if there is any sort of rapid movement in the exchange rate, it is the responsibility to deal with it. but the boj should be focusing on the price developments and economic data as long as they are concerned with monetary policy. kathleen: this week the labor ministry policy panel is

expected to announce the average ways proposal. people are hoping it is above ¥1000. in terms of what the boj has to see, economists are looking toward october for a move. would this help convince them that this momentum is there, the sustainability is there, and they are getting to the point where they can discuss and maybe even start tweaking ycc. >> well, i think the -- once again, tweaking ycc is not a significant matter when and if the boj achieves and feels confident to achieve the inflation target of 2% in a stable manner. once again, the tweaking is under speculation, but that is not the whole point.

the whole point is the how and when the boj feels confident about achieving the 2% inflation target. i think that the market participants are kind of focusing on the details rather than the main message. that is the challenge for the boj to communicate. haidi: great to have you with us, masazumi wakatabe, professor of economics. the market for yen to bonds is harder than it has been in years given money managers and rates volatility source. let's bring in our guest. why are we seeing the surge in global yen deals? >> good morning. i think is your previous guest just mentioned, when we came into marge there was a lot of concern with the new boj

governor, what he might do to rates, but the market has calmed down, they do not expect rates to climb as high as they feared. overseas issuers have come in and taken their volatility, sprites have come down, so they have actually come in. there is an investment appetite now to take out these bonds, which are higher-paying than regular corporate debt here. shery: so what can we expect to be the reaction from the boj policy announcement this week, given that we are not necessarily expecting a tweak in why cc -- ycc, but at the same time we could see the inflation outlook change? >> so obviously the meeting this week is going to be a big focus point. people as you said are not really expecting the boj to move even possibly its ycc target.

if it did move, there would be more volatility in the markets. the volatility would hinder overseas issuers coming here to sell, because it would make it difficult for local investors to buy as they have in the last couple of months, so it will be a key moment, but there are bets at this point that we are not likely to see a move. haidi: is there anything different about the deal surge we are seeing this time around though? >> so this time, one thing we are seeing it is slightly different is we are seeing a greater diversity of issuers. we have seen people like paypal, brookshire, a companies, korean companies, a much broader diversity of companies selling this time, so that is really good for the market. people here do not want to just be buying the same overseas

every time, so the diversity is welcome. shery: you can turn to your bloomberg for more on this, go to tliv to get commentary and analysis from bloomberg's expert editors. we will be following the boj monetary policy coverage live. more ahead. this is bloomberg. ♪

shery: the simultaneous debut of movies are be and up and i are -- barbie and oppenheimer has doubled revenue. for more on the double blockbuster, let's bring in vonnie quinn. cannot help do notice you were wearing pink. i just war with the stylist told me, very much on theme along with many hundreds of people that were pink this weekend. vonnie: new york city was a blaze of paint, and more than 200,000 people went to the theaters this weekend in the united states and canada. it was the best day for theaters in more than four years since april 2019. it was anticipated that it might be. barbie itself took in $155 million in ticket sales.

outside of the united states it made additional $182 million, and oppenheimer broaden $85 million. it really was a success for theaters particularly at a time when we think about the pending death of the gutters. it is also a real case study for companies. it is the iteration of a new strategy put in place by mattel 's sort of new ip strategy as he puts it. licensing ip and having movies made in selling merchandise, effectively trying to reignite the barbie brand and many other brands. the 14 other brands he is trying to do deals with, movie studios and toy makers and merchandise makers, that is obviously going to be a lot easier for him to do now. there is a movie coming out in

april, not to mind hot wheels and the marvel universe. haidi: what is fascinating to me is the movie turns on its head all of the criticism about the cultural cringes associated with the traditional rb toy, -- barbie toy, but is this is good as it gets, because with the actor and writer strike there is uncertainty ahead? vonnie: a lot of the press tour for barbie happened before the actors went on strike along with all of the writers, so they were lucky in that sense timing wise they were able to get much press done, and it could be a very anemic summer for the movie industry outside of this, but for sure this is going to at least get the movie theater business over that stumbling block, and whether rabbie --

barbie was all choices yet to be seen, but it does not appear the mania is dying down anytime soon. mattel is a character in this movie too, it is a huge character. talk about subverting stereotypes. it is a celebration of capitalism as well as a subversion of capitalism. haidi: vonnie quinn there. coming up in the next hour, our guest tells us why corporate earnings and to remain resilient. we also discuss where we are with you on with an investment partner. ♪ only $899. plus, free home delivery when you add an adjustable base. shop now only at sleep number. hey corporate types. would you stop calling each other rock stars? you're a rock star. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday

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when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. shery: this is "bloomberg daybreak: asia." we are counting down to major asian market opens as we set up for a busy week for both

earnings and monetary policy decisions across the world. we are expecting hikes from the fed, ecb, bank of japan to hold steady, we could see a rate cut coming from chile. haidi: it is extraordinary in the event of central-bank action investors have to contend with, and so much of that will determine the direction of the dollar, the direction of the yen, not to mention other currencies we are watching closely. waiting for the politburo meeting, it will be more stimulus from beijing. shery: we continue to watch weakness of the offshore yuan and weakness in the japanese yen continuing past of the 140 level. we have seen losses in the g10 space after the report that bank of japan officials do see little urgent need to address the side effects of their yield curve control program at this point. we are expecting a decision later in the week at a time that we are seeing a little bit of weakness in the japanese stock

markets, losing ground for two sessions. at the moment we are seeing with the bounceback on the monday session of up to 1% as we continue to watch very closely where jgb's are headed given that we have seen yields near .51%. the prevailing scenario, no change. we are expecting to see pmi numbers coming up in about half an hour. also watching treasury yields, because we have seen them actually lose ground in the friday session, and of course with the fed decision we are seeing a two year yield hold around for a five level, 10 year yield coming online at 384 level. take a look at the korean won, because we saw downside pressure for most of the week last week. we are seeing more weakness against the u.s. dollar at that 1287 level as we have more indications coming from seminary

export numbers that the economy is under pressure. we are getting second-quarter gdp numbers this week from south korea at a time when the kospi is losing .2 of 1%, haidi. haidi: take a look at the set up as we get into the first few minutes also upgrading in sydney , it is a staggered open, but we are seeing green so far. we are expecting some gains as we get into the start of cash trading here. also watching the aussie dollar, a little on the backward after recent gains we have seen, was banks seeing the upside could be at $.69 u.s. even lower than that, so much of that dependent on what happens with china. we know that these commodity sensitive currencies like the aussie are a proxy to global demand, so that is another as a class that is very vulnerable to whatever we may or may not get from the politburo meeting, and of course, the case with the rba to be more dovish potentially

building as well. we had pmi numbers to the downside falling into contractionary territory and going into key inflation readings, which are expected to show price pressures continue to be alleviated in australia. finally, watching crude, oil dropping after four weekly gains, traders waiting prospects of another hike from the federal reserve, signs for crude also tightening as well high -- three month high -- shery: let's bring in our next guest who is slightly more constructive on asian equities and has upgraded india and korea to overweight. with us now is head of apac equity research. always great to have you with us. what sectors are you adding in

these markets? >> in korea, we have predominantly added in the tech universe. we remain bullish on the ai driven incremental demand, while in the first and second quarter that was mostly in the conversation of these companies. we are seeing the impact of this demand coming in late 2023 and more so possibly in 2024, so it is essentially memory companies that are obvious candidates where we have added weight and korea. in india, we are strongly positioned in financials, consumer discretionary's and slightly intact as well, but where we have really added is in industrials. we think apart from consumption, the indian investment cycle is likely to pick up. we have seen that in capex skyrocketing over the last few

years. so the industrial companies, which are also benefiting from the supply side policies enacted by the government over the past two or three years look like the next round of winners for us. shery: how are you factoring in monetary policy considerations especially with advanced economies like the u.s. and european union expected to hike? >> right, as far as u.s. is concerned, our expectation is one more and done, one in late july. we could see more hiking from the ecb as well, but it now seems clear the asian economies have not face and are not likely to face the brunt of inflation pressures, and therefore they actually could be in a position to actually cut rates possibly in early 2024, so as far as global monetary policy is concerned, we do have a higher

degree of visibility. than we had about six months ago, and that is one of the reasons why we think that asian equities should do well coming forward, possibly better in the second half than in the first half of 2023. haidi: you are still holding high conviction calls when it comes to india particularly financials and industrials. do you expect that the flow on effect of money being pulled out of china and going into alternatives like japan and india it will continue in the second half? >> at least for the time being. in the near term i think that would continue. we are hopeful of policies in china. we are also seeing some sectors, not all of them, having consensus earnings upgrades and china, so that is why we have

retained our overweight stands on hong kong-china, but at the same time the disappointment in china in terms of economic data points right after the covid relaxation will continue to play for some more time, so flows moving out of greater china and into other alternative markets my continue. india is one of the biggest beneficiaries. since april, it has got almost $16 billion to $17 billion of foreign inflow. that momentum might continue for quite some time. haidi: taking a look at some of the inflows we are seeing when it comes to beneficiaries have large china etf's, this chart on the bloomberg shows that there is still some help with pledges to support private enterprise, to boost confidence that we are hearing from chinese leadership that we could see our turnaround. what would you need to cede to consolidate this sentiment, i

guess, coming out of the politburo meeting? >> right, the coming politburo meeting in late july and early august and subsequent ones particularly in october it will be very keenly watched, not only for policy stability, but also for the coordination in terms of policy stimulus that could come through. we are looking at reception and supportive measures. we are looking at measures to support high end manufacturing, which the government has been talking about for quite some time. we are also looking at the second round or potentially the second round of urbanization. i think these are the main measures, much of which would entail fiscal asking -- action on the part of the government. with investors, they are clearly

looking at coordination of policy measures rather than the quantum, and that is what investors would have to look at in trying to identify the sectors to invest in in china. shery: of course, we have seen that pressure and uncertainty over china lead to alternative places like japan where investors have been very optimistic about, but it seems in the last few sessions or so we are seeing more pressure in this chart on the bloomberg show , so what are your expectations for what happens to the boj, and what are the implications for their stocks? >> well, it now seems clear from the pronouncements of the boj and other policymakers that moving away from ycc is not really in focus at this point in time, so if this continues, there could be some more depreciation for the yen, and

this recent trend of flows living out of japan into alternative destinations within asia, that could continue for some more time, that we believe as far as asia and japan is concerned, it is rotation between those markets possibly having a larger degree of impact on some of the markets. we earlier talked about the movement out of greater china into possibly korea and india. we have seen part of that happening in indonesia also. indonesia has been a reasonable gainer this year as far as flows go, so i think that rotation that we are seeing could continue for some more time. haidi: always good to have you with us. we were just talking about china's support for private enterprise and one of the many pronged ways beijing is trying

to shore up investor confidence. we are getting news across bloomberg, china is calling for better financial support for private investment, the national development reform commission planning a platform to promote projects for private investment. encouraging private investment in key construction projects and also encouraging projects with private investment. we saw earlier in the month china busby is communist party and the government launching the joint deal to improve conditions for private enterprise. it was seen as a strong signal beijing wants to bolster confidence as a broader economic growth has waned. state owned enterprises according to that announcement, and we are hearing that they are encouraging more of these investment projects to be backed by private investment. it comes on the back of friday's meeting between chinese regulators and global investors according to people familiar to

try and lose market segment -- sentiment. the commission met with private equity firms to hear the concerns about how investors are feeling about investing in china, so in terms of the constructed aspect is quite interesting. we did here earlier -- ehar -- hear earlier reports of the council ramping up support for reconstruction, so-called urban villages and more private capital to demand -- to expand demand. all of these puzzle pieces falling into rate prices when it comes to government priorities from beijing. we will continue to bring more details on the stimulus and because i stimulus measures as they become available. we will also be getting more analysis on the cement outlook for china. hao hong telling us what he thinks of the worst of the currency slump is over, he sees

a rally after china adopts a further stimulus measures. this is bloomberg. ♪

haidi: let's get you a snapshot of some of the central groups were watching this week, it is a big week, wednesday the fed widely expected to resume rate

increases after pausing its monthly tightening campaign in june. chair powell may signal a wait-and-see approach for the september meeting. moving to the ecb expected to hike again, the bank boosting borrowing cost it to 4% in september. such an outcome would mean two more quarter-point move starting with this week's decision. at the outlier, the boj will make its policy: friday. investors are waiting for policy tweaks to the company the higher inflation outlook, but we are looking for meaningful nuanced changes around the messaging. tokyo cpi prints are out on the same day. expecting policy easing, policymakers are hoping a strong move would reduce the risks of a recession. keeping an eye on indonesia, expecting to extended spots on tuesday, a fifth consecutive month. a bloomberg contributor says

inflation targets in the u.k. and u.s. over the next five to 10 years should be moved closer to 3%. the fund management chair give us his predictions for the upcoming fed, ecb, and boe policy decisions. >> all three will hike by 25 basis points, but that is where the commonality will end. i think the fed will come across as a dovish. at the bank of england will still be quite hawkish, and the ecb will be in the middle and terms of 40 policy guidance. >> the fed wanted done or more to come is a question we keep leaning on? >> if i go to your framing, which is to adopt excessive data dependency, which is where the fed is today, and if i stick to a 2% inflation target, and they will keep open the possibility of a september hike. if i go to a different framing, which is a much longer term framing that looks at how the

u.s. economy functions, and it should be one and done. the trouble is we have all been pushed into this short term framing where it is almost absurd that we talk about data dependency with policies that act with longing variable lag. >> we are long and variable lag, but what we are is trying to measure some form of algebraic plug-ins that lead us to a phrase restrictive, or is dominic says super restrictive. are we super restrictive right now? >> we are restrictive right now, we are not super restrictive. it brings you back over and over again to the question that hardly anyone wants to talk about for understandable reasons, which is what is the right inflation target for the world we are living in today? for a world i believe is a world of deficient aggregate supply, not a world of deficient aggregate demand which is where we have been. do you want to talk about that

issue? or do you want to push it back as long as you can? and i think central bankers for understanding reasons because they have missing the target for so long do not want to talk about that now. shery: mohamed el-erian, and of course, what happens on monetary policy decisions will really impact what happens in the currency space. we continue to see not a lot of movement in the asian session, but after the dollar gained for a fourth consecutive session and more than one percent last week. on the other side of the break, we saw pressure for the euro holding at the 111 level at the moment, and we saw profit taking given we are seeing the domino effect of the exchange rate reaching an all-time high. the expectation if we get a dovish message from the ecb, that could add to pressure on the euro. the aussie not doing much, but

that has been the result of what is happening in the chinese economy. we have seen weakness in the chinese yuan for a while at the 718 level, but what we are focused on is the japanese yen with the boj decision this week as well. haidi: focusing on hotly traded currency players, the euro is one of them as we get into the start of futures trading in europe at the moment, the most expensive on record. traders are bracing for inevitable declines with the effective exchange rate reaching an all-time high, so really waiting for the dovish message when the ecb potentially adding more pressure on the euro. when it comes to european equities, a second straight week of gains, investors weighing the outlook when it comes to the central bank more regionally there. political gridlock on the agenda out of the spanish election's outcome we are watching closely that will add potentially more volatility in specific asset classes there as well.

sox 100 up 1%. more weakness when it comes to tech stocks. euro stoxx 50 futures up, continuing to watch the direction of u.s. dollar paris trading across the region -- p airs trading across the region given that we have the ecb and fed decision this week. it a roundup of stories you need to know to get your day going in this edition of daybreak. the bloomberg subscribers go to dayb on their terminal on the bloomberg anywhere at. customize your settings so you get the news on the industries had i sense that matter to you. -- and assets that matter to you. this is bloomberg. ♪

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haidi: elon musk tweeted over the weekend that twitter is getting rid of its bloomberg logo, possibly the brand itself. su keenan joins us. i have a bit of affection for the bloomberg. it is to be replaced by an x. >> you are not alone, fans and former employees surprised that we came out this weekend, there will be no more birds going forward. the x will take its place and possibly a change in the company going forward. musk has made it clear he has never been a fan of the iconic smiling bloomberg logo, he said they should have change it along to on the go. quote, we are cutting the twitter logo off the building with blowtorches. just six months after he acquired twitter for $44 billion, he merge the corporation into an entity called x corp.

a startup that preceded paypal was calledx.com, so he likes the x. this is something that will result in a lot of tweets pro and con, but it is taking place. shery: there is a change in financing options at tesla. >> musk also no fan of the fed raising interest rates. he believes that is hurting along with other factors car sales, and so is now offering seven-year loans to finance the vehicles in addition to the previous financing, which was up to six year loans, and believes this will make it more affordable for tesla lovers to buy the cars. shery: su keenan with the latest on elon musk, tesla, and twitter. the simultaneous opening of two movies is doubled box office revenue from a year earlier.

for more, let's bring in vonnie quinn. lots of people in pink, not just us. vonnie: i am not sure what they were dressed in for oppenheimer, but the ghettos were packed, more than 200,000 people went out to see barbie over the weekend. brian doing 2000 -- 200 million in ticket sales and the missing candidate. oppenheimer brought in $80.5 million, the best weekend in more than four years since april 2019. a fantastic weekend for mattel, that stock is up 20% from a month ago, and a great success for the ceo at mattel for four years. he had put into practice the ip strategy, where he is trying to make the ip of some of the brands that mattel owns were something. goldman sachs estimates with

some of the deals the team would have done with barbie they will generate 10% to 20% on each piece of merchandise, everything barbie generates for the company. haidi: i feel like i should have one black -- shery: with the latest on barbie and oppenheimer, the movies we need to watch. it take a look at how futures are trading, this after we saw the mixed picture on the friday session. not a lot of movement early in the session, but a little bit of pop in nasdaq 100 futures after losses on friday, this coming at a time when we have 170 earnings results including from microsoft, data -- meta, and 40% of market cap, so a lot for

investors to contend with. we are talking about all of the right decisions coming up this week including the fed in d.c. be expected to hike rates, boj expected to hold steady. we could see our rate cut coming from chile, but we look ahead to turn up was because politburo meeting with grow investment group to get a sense of what policy measures are needed to instill confidence among investors. this is bloomberg. ♪ hi, i'm jason and i've lost 202 pounds on golo. so the first time i ever seen a golo advertisement, i said, "yeah, whatever. there's no way this works like this." and threw it to the side. a couple weeks later, i seen it again after getting not so pleasant news from my physician. i was 424 pounds, and my doctor was recommending weight loss surgery. to avoid the surgery, i had to make a change. so i decided to go with golo and it's changed my life.

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shery: breaking news at of japan, we are getting preliminary numbers for pmi for japan for the month of july. this is the second consecutive month where the manufacturing emi is an contraction territory, coming in at 49.4 for july.

when it comes to the composite number overall we are still in expansion territory, the same level which we were back in june. services still strong at 53 point nine, above expansionary territory of 50, but manufacturing looking pretty weak. haidi: global fund managers are tamping down expectations ahead of china's politburo meeting. many are bracing for prolonged gloom. our guest is joining us now to discuss messy pricing and expectations ahead of the upcoming july politburo meeting. we did get the announcements in the past few minutes from the and drc -- ndrc about supporting construction and supporting private enterprise and private investment. >> we spoke with global fund

managers last week, and the sense we get is the market is pricing in some continued supportive measures from the upcoming politburo meeting which is a setting where leaders get together and talk about economic policy for the second half, but they are not expecting any bazooka like stimulus that could help trigger a strong rebound in the economic growth for the second half, which would not be good news were equity investors that are impatient with gradual stimulus measures. investors are really not excited about the stimulus measures that are coming drip, drip, drip. chinese stocks and hong kong stocks ended a week lower. investors do not see that -- they do not see the meeting to be a catalyst that could turn around. at the market is bracing for a prolonged period of lower volatility, so given that environment what investors are doing is focusing on

idiosyncratic opportunities and companies that can survive though weak economic environment in china. because there is such a strong pessimism, it offers an attractive entry point into the market. shery: are there any specific sectors, any specific stocks they see opportunities in? >> they are expecting supportive measures to come in like property and also with consumption, boosting specific items. for the meeting they expect monetary measures to come, but in terms of investing they are focusing on sectors such as energy transition, consumer and discretionary, because some of the stocks have become really

cheap, 10 times below the historical average. haidi: charlotte yang with the latest, let's get some more from an analyst at grow investment group. we are now waiting for the politburo. are we going to be disappointed once again both in terms of the stimulus measures that they could deliver and how effective or productive they are going to be? >> yeah, i think we had a politburo meeting at the end of april. back then the discussion is demand is very weak, expectation is weakening, and there is a supply-side stock from weakening exports as well, so i think this time around the issues are that the urgency is imminent. we are expecting to see more details on recent polities -- policies that have been rolled up. there was an announcement last week about the -- older parts of

the urban centers and many of the cities, and that will create some demand for property and trying to help to stabilize the property sector, so there are many things to do at this moment. we are being hit by a weakening exports, very weak property sector, and people are not spending as much. haidi: i am just looking at these latest lines from the ndrc, encouraging private investment to partake in construction projects as a part of the broader economic revival. how tempting will this be for private investors, given the debt burdens we know already exist and the structural problems of the property sector now? >> i think right now, if you look at credit this year, the private sector is pulling in substantially less, and also

overall borrowing is lower than last year as well. and last year was a really low base to compare with, so i would say that right now it is not only about how the private sector is unwilling to borrow, but also whether they have the capital to borrow. for example, the sales of property are down, so it creates problems for property developers to recycle cash and put it back into it investments. stuff like that. not only expectation is weakening, but people need the cash flow to sustain the debt load they already have on the balance sheet. shery: so external demand is weak, which means trade for china is not helping their economy, so where should they put their hopes for a boost to the economy? >> obviously, consumption, many people are calling for distribution of cash to

residents. obviously, similar policies in overseas countries actually helped to sustain the economy during the pandemic years. even though this policy may make sense, is being disagreed on by the top government officials, so i think it is a remote hope. the property sector needs help, and also the policy i just discussed right now to redevelop some of the older parts of some of the super large cities should help to sustain the domestic demand to a certain extent. shery: given what is coming and not coming from the government, what can we expect of the chinese yuan? >> yeah, it has been weak, especially against the backdrop that chinese exports are creating a super large surplus month on month, so exports are

weakening. exports is a sector not controlled by domestic policy, so overall because of much of the chinese production capacity will mend with foreign demand, so you have substantial pressure on prices, and that is why we are seeing persistent upstream deflation, and cpi is close to zero. it creates pressure on the yuan. unfortunately this week we will share with the fed is going to say about the u.s. policy, and if the fed is close to the tightening cycle and also the chinese pboc may be on the verge of pumping more liquidity into the system, then probably the pressure on the chinese yuan will lessen.

the 7.38 level should be a cyclical low for the chinese yuan. haidi: when you take a look at the time it is taken for decision-making and this would have communication and drip feed we have seen from policymakers and authorities, how high is the hurdle for truly effective policy stimulus at this point do you think? >> very high, very, very high. we discussed weakening domestic demand. unwilling to distribute cash to residents, so the unemployment level is high especially among the younger generation and people's incomes being hit and all of that. the willingness to spend money is lower, so if you look at the chinese household confidence by the pboc survey, even though it has improved from a very low level, it is still at a historic

low. so that is the reason why we are in urgent need for some policy stimulus, and hopefully we will see some more details and upcoming meetings. shery: how closely do you think the pboc is watching various central banks, and if the fed and ecb are expected to hike, and much leeway does this leave the chinese central bank? >> fortunately, if you look at the domestic economy, we do not have inflationary pressure, so the picture in china is very different from foreign countries where inflation is still very high, so it creates room for the pboc to act. at the same time, because the fed is very close to the end of the tightening cycle, and it creates more room for the pboc to act, but i think right now the problem is not how low the interest rate is, because the interest rate is had a decade

low right now. the problem is people borrow too much in the past few years, and they cannot borrow much more, and because of cash flows being hit so the ability to service the debt load is also very low as well. we need more creative monetary policy and fiscal policy to help sustain the economy. haidi: always great to track with you -- chat with you. take a look at benchmarks trading at the moment, really pretty decent gains at this point in the session that may well change as we get into the start of trading in china with some policy uncertainty there. certainly part of the strength coming through from japanese markets is boj decision to wreak -- week. and no expected change to ycc. we are expecting more nuanced

language from governor ueda. the kospi is up by .5 of 1%. global markets bracing themselves for a wave of central-bank decisions, resilience of the economy, session concerns against the possibility of further rate hikes, or if you are looking at the chilean central bank the possibility of jumbo rate cuts, so that is something to consider as we get into this end cycle of global central banks. potentially weakness risks to the downside for the aussie dollar at this point. do these concerns of the chinese slowdown, lack of global stimulus, local demand weakening weighing on the aussie dollar. kiwi stocks up .5 of 1% as well. broadly strong session. it much more to come on "bloomberg daybreak: asia." this is bloomberg. ♪

haidi: you're watching "bloomberg daybreak: asia." let's get you the latest for blue groceries. the prime minister sanchez has denied his right wing opponents a majority in parliament.

the party declared victory and won the most seats, the right wing bloc has only 170 seats in total and needed 176 to oust the socialist. spain could face another election later in the year. thailand's biggest party has will not joining any coalition that includes the pro-democracy move forward party. the leader says he has conveyed the message to the party, and the second biggest winner in may's elections after move forward. shery: we are watching the philippine president delivered to second state of the nation address. ferdinand marcos, jr. says he plans to announce a performance report and lay down his priorities for the coming months. let's bring in our correspondent. what are the key challenges the president now faces going into

his next year? >> i should mention president marcos is expected to deliver his second speech to congress today at 4:00 p.m. inflation is top of mind for the government and people in general. it is still way above the central bank's goal, so investors and analysts are watching for steps by which the government will address this, probably more exports. [indiscernible] haidi: what other legislative priorities are we expecting? >> president marcos and his cabinet have been emphasizing the need to reform military pension for the past months.

he has been worried of a fiscal collapse if this issue would not be addressed, so the government has been fully funding soldier'' pensions for the last few years, and this has been straining the budget. they are expecting this will be mentioned in the president's statement. there are also expectations president marcos will lay down a plan in his priority legislation said earlier this month. there is a plan to tax internet transactions, make paying taxes easier, so it is similar to what he mentioned in his speech. shery: is it interesting to see some of the programs this president has pursued echoed some of his father's late dictator ferdinand marcos did in the two decades rule?

what can you tell us about this? >> so, yeah, president marcos even in his first speech has been praising his father. for a while, he appointed relatives of past ministers during his father's rule. relatives of his father's ministers before, and also in his agricultural programs, kids plan to revive -- his plan to revive a plan to give away food stamps, help farmers sell their products, even the names of these programs were similar to those during his father's time. he said this is marcos's way of

saying his father's programs were finished, plans to accomplish them and finish them, so we will see if this trend will continue some of these echoes or throwbacks to his father in the speech later. shery: andrew alonso joining us there. we have more to come on "bloomberg daybreak: asia." this is bloomberg. ♪ on affordable academic model allows many students to attend for less than the cost of a state university -and with less debt after graduation! looking at scholarship offers? see how gcu compares at gcu.edu/myoffer

>> i think we are going to see big banks benefited from small banks losing deposits. >> we think profitability has been thin, so there is limited room for them to cut rates on existing wages. >> figure banks can set pricing a little better, but when the fed moves as aggressively as they did it woke a lot of people up, so the marginal cost of the deposit is very similar to the marginal cost of borrowing short-term debt. >> banks get overzealous on 100% of cost. this case we were an accidental consequence of the fed's actions. we did not cause this problem. loans were not overstretched. >> seems like we are past the

point of concern where there will be a full on banking all down, and from a variety of perspectives a little more optimism seeping into the market. we think the construction-financing environment will get better going forward. haidi: bloomberg tv guest is pointing to our latest question, which was what will banks do in the second half of 2023? nearly 600 investors and bankers were surveyed, more than half of them said a banks will stabilize. 29% expect them to make more money than ever. between three and five respondents said they would most want to work for jp morgan's jamie dimon. that does not mean wall street workers are letting bankers off the hook. -- shery: on the corporate front, this is a really big week when it comes to earnings, especially

in asia. companies from movie theater chains to our maker said to release quarterly results, and we will be keeping a close watch on samsung, imax and rio tinto. in the u.s., ai taking center stage with microsoft and alphabet reporting in addition to contending with microsoft's bing, microsoft may face competition from apple. we will be watching results from snap, meta, intel and amazon, but we also have bank earnings in asia. let's dive into the details with felix. what are we expecting? >> we are expecting the rising interest rate to and if it they lending businesses, and for stanchart we are talking to hundred basis points increase in

rates since march, so it can support net interest income. after the acquisitions of citigroup assets in southeast asia, we may see support and consumer banking businesses, so they are the first batch of banks to report earnings in asia . haidi: the end of the rate hike cycle could also help asian firms, so where do you see the benefits lending sector was? >> right now at fed is expected to raise interest rates by .25 of one percentage point. some investors already considered that may be the last interest rate hike in this tightening cycle, so in that case you will divest fund flows to asian markets and centers like ai and chips. just like samsung, we are expecting it may suffer from

sluggish demand in the market, and also oversupply during the pandemic, but its chairman is expecting the semiconductor industry is going to turn around in six months and one year. shery: we have also seen china aligning measures to increase consumption, including car purchases, but this would have been impact in the future so far when it comes to past earnings. what should we focus on? >> we already have some chinese firms already [indiscernible] because of strong vehicle sales. we are expecting it is going to beat estimates because of the strong battery sales and falling prices can actually help its margin recovery, so with the policies, we may see some recovery in the eeev sector,

because the first quarter of the demand in china is very weak. haidi: felix there, take a look at stocks we are walking -- watching. chinese developers and focused again, a company as raised his chances of avoiding -- according to by some a stake in one of its entertainment units. alibaba is on the radar as well, declining at 7.6% share buyback request, wanting to maintain is 33% stake in ant. ♪

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when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. yvonne: 9:00 a.m. in hong kong. i'm yvonne man with rishaad salamat it. rishaad: looking at