haidi: welcome to daybreak australia. annabelle: we are counting down asia's major market opens. kathleen: good evening from bloomberg's world headquarters in new york. asian stocks set to start the week under pressure following mixed signals in friday's jobs report. fresh inflation prints coming out in the u.s. and china. haidi: israel's prime minister tells us he will not pursue the entire judicial oversaw initially planned tray -- saying he is trying to with store balance. cap -- kathleen: warren buffett's profit gains. haidi: the week were taking a look at u.s. futures. the focus will be on the fed given the commentary from two fed officials and a jobs number saying if we see a sustained weakness in jobs data in the

u.s. the fed may have to start thinking about pivoting. we are seeing u.s. futures looking modestly higher. s&p futures up a 10th of 1%. the big story is going to be will we see a seventh straight week of gains when it comes to crude? the bti getting 20% over the past six weeks as we see restrictive demand continues to tighten and supply continuing to tighten. goldman sachs saying we sell some of the most amid all year in july. brent crude sitting higher i-4 tenths of 1%. that higher by 4/10 of 1%. that he ran crow raising prices to all customers in asia and europe. that is going to create more of the tightening effect. take a look at the set up when it comes to leo's drill you session. futures looking a little bit

like this. the aussie dollar which did see modest gains on friday. pretty flat at the moment at the start of trading. annabelle: going to be keeping an eye on the commodity currencies. also watching the japanese yen because we do have the summary of opinion coming up for the july meeting in the next hour. us more clues into what policymakers were thinking when they decided to make the surprise change to program of yield control. equities, the future set up is mixed for the session today. we are a little bit lower for the guiding of the start for the sx 600 the key events on the agenda, one of them is the chinese inflation numbers. we could see consumer prices going lower for the first time in two years on wednesday. deflation is one of the big issues in china. this chart here puts the concern

around china's economy versus what is happening into japan into further focus. taking a look at what we are seeing on japanese stocks. the msci china index, you can see we are setting up for at performance for a third straight year. some of that those come down to concern still present in china's economy around the outlook for growth. can add to that geopolitical tensions. that is another reason investors are continuing to steer clear of stocks on the benchmark it. in japan the story has been more rug corporate governance reforms. the boj, we did see the surprise change last week to the yield curve control program. any sort of normalization is expected to be gradual. a sharp rear appreciation of the japanese yen is not expected to take place. something else that is a positive for the stocks. kathleen: let's move on to look at the employment report. . what it means for the fed and what it means for the markets.

the president and ceo of banyan capital management joins us to is one person put it the jobs report was not strong enough to convince the doves are wrong that the fed should be done with rate hikes or was it weaken enough to convince the hawks more should be done? what do you see for the markets in all of this? >> i think the job reporter was mixed but unemployment fell. 3.5% in july. it is still down. wages were up 4.4%. it is hard to imagine a 2% inflation number when wage inflation is up. the fed has been saying they were looking for a little over a percent unemployment number in the fourth quarter and that does not seem likely based on the night -- the number they came out last week. for me i don't we have seen the

last of the rate hikes. i think from a market perspective there is a number of signs there is a weakness to come. i would be cautious and defensive. there is not enough to suggest we have a recession with coming. we have mixed economic data but we have strength in the consumer, the labor market remains tight. there is some negatives and some positives. nothing that says recession but also nothing that says the fed should pause. kathleen: let's take a look at the bond market because we solve the big move up broke through the move up. was it 4.09%? got as high as 4.3 percent. that seemed to unsettle stocks on many days. where is that going to go? shana: that is something that should be concerning for equity investors. the peak of 10 year yields in

october when we saw the market bottom is 4.3 5%. 10 year yields and bond yields are in the 10th decile. according to strategic's they have done some great work. there are seven years of rolling five-year data. when yields get into the 10th decile the s&p performance forward is below average. it is also if you think about the similarities to what we saw in a tober that might suggest there is downside in the market. yield rising like this is typically negative for equities. we are seeing rising volatility we have not seen in yield since the 1980's. there is a lot to be concerned about. these are signals that suggest their hard times coming in equities and there is is in equities. i would be cautious right now. haidi: does that mean the real bear market bottom has yet to hit us? shana: that is the debate. a lot of people thought over

2022 was the bear market bottom but there are things that typically happen on the bottom that never happened following that. you saw financials broadly underperform. you never saw a rebound in small caps. we are back at the same place in terms of yield which suggests there is downside under the market. if you look and see the russell 2000 and only recently broke out of 17 straight months of rolling negative performance. typically that can be a good sign. i have been watching small caps to see if there is any breakout but we are seeing change in leadership to energy and materials away from technology and consumer discretionary. that is indicative may be a change in the way the market is trending in not in necessarily a positive way. it is hard to imagine a scenario where we see continuing earnings growth when you have rising rates, inflation and weakness in the economy in places like

manufacturing. nonmanufacturing was we. there are things that have me concerned but nothing that screams recession. haidi: it is interesting. we talk about the consumer is resilient. you look at these specifics. back-to-school spending for example report showing we could see that decline for the first time in a decade. they are not insubstantial declines either. shana: no, there is that. we have seen rising consumer defaults but nothing really concerning. we saw in november 2021 we hit an all-time low. we have risen from there. the low was .37%. it has arisen to .72%. the long-term historical average is over one and a half percent. we are are nowhere near default

rates that are concerning but they are rising so that is something to be of concern. there is no fiscal stimulus. there is a desire to pull liquidity from the system. none of those things are positive for equities or earnings. they are headwinds to those things and to the economy. some of the leading indicators you definitely see a mess. there is reason for concern. nothing that screams recession now. but definitely things that suggest this idea we are not going to have a recession at all is probably not true. i could see that in early 2024. kathleen: and you are not alone. what do i do with my money? move over into cash? do i find the defensive stocks? how do i handle this at least until early next year when you know if there is going to be a recession or not?

shana: a lot of people are going to cash right now. we have seen record flows into retail money market accounts. the average money market account is yielding pre-.9%. there is something to be said for that. i am looking at stocks and positioning that will benefit from rising correlations between equity and fixed income which tends to happen when rates are rising. i like my liquid alternatives. i like my morris k. i fmf. as a three etf -- those are three etf's i like. in terms of stock ideas and sectors, i like sectors that will benefit from scenarios where there is leslie the in the system should things like energy, materials, health care, industrials. some of my favorite names for onto those cap worries. southern copper been he is one i have talked about a lot. it was a 15% in the last month. market multiple is i with the average. there are a lot of tailwinds to the business in terms of the

macro. you look at a company like caterpillar. caterpillar has a lot of correlation to rising rates. it tends to outperform trading at a 12 market. really good financials. very stable business. great management. that is another company i really like. in health care you have something like cigna. that is a company that has been growing membership. it has been making acquisitions. great capital allocation strategy. trading at a low multiple. but have had going earnings for the last 12 months. something worth considering. those are the names i'm looking at. things that will benefit from the liquidity being moved from the system as opposed to the tech names that tend to do better when there is more the energy in the system than when rates are lower. haidi: always great to chat with you. president and ceo of banner in capital management.

let's take a look at some of the top political stories. regiment and yahoo! says he is no longer pursuing the entire judicial overhaul planned by his government to he wants to change the makeup of the selection committee for judges. his plans had led to the largest antigovernment protest movement in the nation's history. he spoke exclusively to bloomberg in jerusalem. >> i am still going to give it several months to try to get another consensus. it will probably be about the composition of the committee that elects judges. i don't think we should move from one extreme or we have the most activist judicial court on the planet to getting to a point where the legislature are defensive and knockout any decision the court meets. there has to be a balance. that is what we are trying to restore. haidi:haidi: you can hear more from our exclusive interview with the israeli prime minister in the next hour. ukraine's attacks on a russian

naval vessel and oil tanker are signaling a rapidly expanding were putting at risk russia's commodity exports. a marketing technologies firm says freight rates are blooming and the cost of shipping russian crude may rise as much as 50%. russia exports most of its grain and up to 20% of oil via the secor door. china's foreign minister has invited the e.u.'s top diplomat and his delegation for a visit should he says the visit will allow for preparations to be made before a leaders summit later this year. he was scheduled to visit beijing last month and be at the foreign minister. kathleen: still ahead, a look into what is raven that will markets as wti sets the longest string of weekly gains in more than a year. up next, the u.s. economy is getting a boost from bidenonmics

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>> it is a job report that has something for everybody. >> this is an in line payrolls report. >> in line with market consensus but also in line with fed wishes. >> gradual labor market normalization. >> our view is the fed is done. >> we may still be looking at either a september rate hike or another rate hike before the end of the year. >> the hawks in the fed are going to focus in on the wage growth. >> we can accommodate this for percent wage growth. > they are going to argue the labor market is too strong. >> it feels like the soft landing camp is definitely winning out here.

> the marketplace favors at the margin for softer landing interpretation as of now. haidi: very different views from our recent guests weighing in on the u.s. jobs report. that is why we have to bring in another big fed watch church a look at the report, what it means for the economy. he is a foreign policy institute senior fellow at the john hopkins school of advanced international studies and a managing director at the imf. you heard both sides of the story. one person on friday put it so well. this report was not strong enough to convince the doves they are wrong or we can enough to convince the hawks that they are wrong about wanting to hike rates more. what is this report in a nutshell? >> it showed solid but definitely slowing growth and indications that should lead to easing in pressures.

this is where the argument is going to lie in the next few months. what will be crucial is developments in the labor sector and the interpretation of those developments. for right now a softening economy which was necessary if we are going to get to a soft landing. the latest data looked to me on favoring the soft landing view. kathleen: what about the more hawkish view that wages are growing and it is a sign that there is not tightening enough in the labor market as well as 187,000 new jobs still indicating the economy is moving along nicely? >> those arguments depend on what economists call the phillips curve view of how the labor market interacts with the economy broadly and with inflation. generally that have you would hold the lower the employment

rate goes the higher the inflation would ensue. this comes from an older view of the economy in which there is not that much competition and companies have a lot of pricing power and reflect ability to reset prices. in the model road -- the modern word in which there is more competition. it is not clear to me the right way to view wages is they cause inflation rather than they follow inflation. so far the u.s. wage growth has barely done more than make up for the inflation that already has occurred. haidi: when you take a look at the inflation outlook, is there a possibility we are going to see structural issues come into play? we are already seeing oil, wti 20% over the past six weeks. we are seeing grains pricing, commodities pricing start to take up again. is that a concern? john: of course.

there are always risks that can unsettle the outlook. a serious increase in commodity and energy prices will it affect the view of the strength of economic growth. if we look at let's call it a more core view of where inflation is going and look on the margins, we have already seen goods prices in the u.s. are growing at less than 2%. in the margin, it appears housing and rent prices are slowing substantially despite how they calculated in the price indexes. so far, it appears wages have made up for past inflation in a context in which the strength of the job market is waiting. as you notice in the latest figures, there was an increase in average hourly earnings but a decline in the average work week that suggests growth in personal

income which is the primary determinant of household spending is slowing and slowing notably. it looks like it seems to me there is a lot of reason for the fed to stay on hold for the next period and see where inflation, the outlook is going. it seems to me there are signs very clearly that point in a direction that says inflation pressure should be easing. haidi: you mentioned the international factors as well a little while ago. are you watching china? we are expecting consumer and factory gay prices to be firmly deflationary this week. is that going to have an exported element for some of its trading partners? john: of course. it is not just through those kind of prices but demand in general. when we look to europe, we can see there has been a slowdown

after better performance. now things have slowed substantially. the international environment is hardly an inflationary one. we are paying close attention to china. kathleen: i want to zero in on this. he said there is enough for the fed to pause. michelle bowman of the board of governors says they will probably have to hike rates more and we can assume their other hawks that agree with her. why are they wrong and what do we have to see next for the pause to take place instead of another rate hike in september? john: remember, in 2021 the fed was telling you they were going to keep rates low for a long time. the facts intervened and they reacted. they reacted late but they reacted. there is a good reason to think the of gone from too loose to

two tight. we will have to watch how the data unfolds. the fed says it is data dependent but it cannot describe exactly which data it is dependent on and how the dependence translates into policy. let's presume if the data continued to show a slowing of demand growth, especially a slowing in the cyclical and sensitive -- cyclical and in the sensitive sectors is what is happening and if the wage pressures continued to moderate as it appears they are, then it becomes much harder to build a case that says more is needed. we will see. there is an elemental difference in view about how you should look at the labor market. whether using data from the 1960's, 70's, 80's, 90's and in

order to develop this phillips curve view about how you relate unemployment to inflation, whether it remains as valid as it was way back when because in recent years has not been a very good guide inflation. -- guide to inflation. haidi: so great to have you with us. policy institute senior fellow at john's in school of advanced international studies. let's take a look at some of the other eco-data we are watching. we are getting china cpi numbers. the economic outlook continues to were investors despite beijing's support measures. we'll be watching a rate decision by the rbi. economists are expecting policymakers to standpat. on friday we may see an easing in india's production on headwinds. in the philippines economists are expecting second quarter gdp to grow by 6% lifted by investment and net exports.

there is plenty more to come on daybreak australia. this is bloomberg. ♪

♪ haidi: taking a look at fx. the dollar has been trading, mixed basket. watching the aussie dollar. much will hinge on the proxy trade with china. economists expect to hike again in november after pausing twice more with easing expected in the second half. watching dollar china as we have a slew of economic data, none are expected to be good this sleepovers just aren't what they used to be. a house full of screens? basically no hiccups? you guys have no idea how good you've got it. how old are you? like, 80? back in my day, it was scary stories and flashlights.

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♪ haidi: u.s. government lab that

reached a milestone in nuclear fusion last year has repeated the achievement. lawrence livermore laboratory in california conducted tests that produced ignition last week. they were able to reproduce the breakthrough. it may bring the world closer to fusion as an abundant clean energy source. sticking with the energy theme, brent and wti are higher. annabelle is watching the move. can we make it a seventh straight week of gains? annabelle: start of the week, oil prices are tracking a hyatt, above $83 a barrel for wti. putting it in focus we are up for six straight weeks, the longest stretch of gains since june back in last june. what is driving that? production cuts coming through from saudi arabia, also from russia. u.s. stockpiles have been

shrinking by a record but it is not just in the rent or wti patch. when you change on we are seeing it in other parts of the oil market. this is the shale market and what we are seeing in this is one of the key metrics helping essentially put a tailwind into the industry because we have seen average wages in the u.s. trading below $43 a barrel. we are seeing key costs coming down, categories like pipes, rigs. on top of that you've got explorers finally seeing record cost cuts and other factors like drilling techniques. big advancement all of that is putting optimism into the key market as well, kathleen. kathleen: what about the oil market in asia? this is a big factor in what happens from here. annabelle: that's right and this is key news that came across on

the weekend but it was the pricing for saudi arabia to the asian market and we saw prices being lifted by $.30 a barrel, so that was less that had been forecast, the average estimate was for a gain of $.50. three dollars 50 cents a barrel to put it in perspective why this is so important. saudi arabia, aramco the major player. it does sell 60% of its shipments to this region. long-term contracts, prices are looked at a monthly basis. this is the state of play for the asian market, they kept their prices unchanged for the u.s. market. haidi: our next guest, evan lennix joins us. resources analyst. so when you look at the supply and demand situation do you think it is sustainable? do we see $100 brent by the end of the year? evan: i'm not sure that we may

see a hundred dollar brent but if you look at the major demand and supply factors, at this point in time, supply has been curtailed. you talked about the cuts we have seen coming through from saudi arabia and russia. we've seen activity inside the u.s. in terms of perhaps further exploration and a coming to life of production in that country as well. at this point that is not quite with us yet. we've got supply constraint but it has been a change in the demand side. we have seen china demand week given economic circumstances we have seen inside. there does appear to be a change coming through and that is what we are seeing in the current prices. after all, if we expect to see further demand coming out of china, we would expect to see further rises in energy prices over the course of the next few weeks. the trend we have seen will continue we believe going into

the second half of this year. haidi: does the price hike from saudi arabia make a meaningful difference when it comes to asian demand? evan: yes, because what it does is sets a benchmark across the delivery and with that, it does suggest that there is perhaps some tightness in supply. when that happens, we know customers are looking elsewhere and we believe that is what's happening. that is why we are starting to see reaction other than wti and brent. kathleen: let's move on to some metals. one sparkling precious one, gold. we are facing the treasury refunding. notes, bonds and people are wondering what that's going to do? supply hitting the market. will it push yields to the recent highs or not? what does that mean for gold?

evan: if we see further supply coming into the market in terms of u.s. bonds, that will push the yields higher and that is going to unfortunately wide in the interest rate differential between the u.s. dollar and its your currencies. as the differential widens, it pushes the u.s. dollar higher and that is not very good news for commodity prices. we have seen that time and time again over the course of the first half of this year as the u.s. dollar has remained stubbornly high. we have not seen commodity prices being able to rally to any great extent and we have seen it considerable softness in the gold price because of the u.s. dollar move. kathleen: there are so many analysts you are pessimistic about china. they have to do more physical

stimulus, cut rates as they introduce very specific targeting ways to stimulate the economy. looks like the commodities market is optimistic that this will all work and i wonder what that means for iron? >> certainly yes. china is a big economy, so we do not want to see it growing at 10%, that would knock the socks off every commodity price under the sun. we do need to see more sustainable and continued growth and that is what the chinese authorities are trying to do. they are trying to get their economy into a mode of sustainable growth. that is very good for commodity prices because you've got the certainty of future growth. so they are tweaking the levers. in there to ensure that that is going to happen. if we see china continuing to grow at a nice, stable pace, because of sheer size, the volume of commodities that are going to be needed to support that sort of growth continues to

remain very high-end that is what we are seeing inside the likes of copper, inside the likes of nickel and also iron ore. prices have weakened on the short term. disruptions. longer-term, we have not seen prices drop further away and they may remain consistently high and we think that's a good base for further and higher prices in the future. haidi: with seen that rebound in lithium prices. are you constructive on these future facing metals now? >> look, yes, we have been keen on a nickel. we took a wild to change our lithium outlook because the price over the course of most of last year remained near record highs. it has pulled back and that has given a very good opportunity to get back into that. because we are seeing the sea change now in the auto industry, well and truly locked in, it is

not with us yet but the move toward electric vehicles is now well underway and that is what is giving good support to the lithium price, they got watched after after the course of 2022 and we believe that there are certainly further prices to be had to the high side for lithium as we see actual demand starting to pick up over the course of the next couple of years. kathleen: thinking about copper big picture, it's always considered kind of an expansion, recession gauge. people are saying recession is inevitable. what is copper telling us and where do you think the metal is going to go? >> we believe if you start with the inventory, the inventories and copper are critically low. a headwind for quite some time, given that we have been inside of a hiking cycle now for well over one year, one would have thought we would have seen

copper on the high side. not to be. that would suggest to us that there is certainly something happening inside the supply and demand equation. supply remains relatively constrained and yet demand continues to bubble along quite nicely for the same reasons as we have talked about with lithium. plus other industrial things. yes, the risk of recession did knock some of the pricing out of copper, but we've seen recessionary risk easing and that has brought those prices back to life. if we are right and there is a soft landing in the u.s. and china does continue to sustain stable growth, and that bodes well for copper demand in the future and we would expect to see copper prices rising. the only fly in the ointment is the u.s. dollar. if it remains high that will curtail any rally until the u.s. dollar starts to move to the

downside. haidi: are you seeing opportunities in soft commodities at the moment? do you expect significant tightening across a broad soft commodities as a result of el niño? david: at this point in time we have to suggest that human intervention tends to move the prices more than weather intervention. yes, we see prices moving when we see major events in supply regions occurring. price spikes tend to only be spikes. at the advent of the russian were, that's a human intervention. we saw that with wheat prices. india and rice at the moment. that tends to be the human factor that is impacting prices. but yes, watch out for further -- abnormal weather events. we do believe that is going to play your and bigger roles in terms of pricing. what are these doing?

making customers move away from single source areas for supply. they are now looking for broader supply bases and we believe that is to mitigate somewhat the advantage of one particular region being hit by a major weather events. kathleen: david, thank you so much, walking us through the commodities markets today. he is resources analyst at fat profits. you can watch us live, see past interviews on our interactive tv function, tv . dive into securities or bloomberg functions that we talk about and become part of the conversation by sending us instant messages during our shows. this is for terminal subscriber's only, check it out, tv . this is bloomberg. ♪

♪ kathleen: is bailey prime minister netanyahu is backing away from a plan to overhaul the judicial system and working to change the way judges are chosen. previously proposals had sparked an antigovernment protest. he spoke exclusively to bloomberg about his change in strategy. >> i am absolutely sure that israel will come out stable and

successful and democratic, at least as democratic. i do not think we are going to tear the country apart, have civil war. right now what you are seeing is the natural -- the natural conflict between two opposing views that have not yet meshed, but they will. >> do you support your central bank governors who is well respected internationally? >> i appointed him. >> will you back in for another term? he has to decide by next month. >> i have not talked to him yet, but i will. i have guarded rigorously his independence and interdependence of the central bank and that will continue to be the policy. i will talk to him but you would not believe this, but i've not had the opportunity to discuss that. >> will you ask him to stay on? >> possibly. i want to think about it. i think he has been an exceptional central bank director and i think that is a possibility that i will have to

talk to him about. >> one of your ministers called him a savage for raising interest rates. >> my ministers can say anything, but it is a fact that we have never intervened with the independence of the central bank and we will not. in fact, i think i passed some laws, corrective additional laws that safeguarded the independence of the central bank. i do not want the government broaching in on what the central bank has to do. >> do you support interest rate hikes? >> i leave that to susan. we've had several central-bank directors. in a few months, more time is a prime minister and anybody in the western world for the last half a century. i've had a lot of central-bank directors to talk to i talk to them in a padded room, absolutely soundproof.

so we can hurl at each other whatever we want. when i come out, i always give back into the central-bank director. >> it would be a powerful message to the markets given the divisions and turmoil if you were to ask him to turn -- stay on. >> that is a consideration, i will consider it. i think the powerful message is the independence of the central bank and the choices i have made in bringing in central-bank directors, whether it was stanley fisher and after him the current central-bank director, i think people see that we choose well. haidi: israeli prime minister netanyahu speaking exclusively to bloomberg's francine in jerusalem. australian prime minister is rejecting the possibility of postponing a referendum on adding an indigenous advisory

policy to parliament. paul allen joins us from sydney with more. what is the prime minister doing to rally support for the indigenous voice to parliament? >> the prime minister spent the weekend in the northern territory, he got a warm welcome and he said this is not going to be delayed or deferred. the government will not kick the can down the road, his words, when it comes to the indigenous voice to parliament. what is it? it would embed an aboriginal voice in australia's constitution and create an advisory body which would give feedback on policies that affect the indigenous population. i think you will find few people in australia that would disagree that something needs to be done on this. aboriginal australians have shorter life expectancy, worse health outcomes. a young aboriginal is more likely to go to prison that attend university. there is strong support for the

idea of a voice to parliament in the early days but it has been steadily ebbing away over the past few weeks. in february it was 56% support, now in july or last july there was 41%. the trend is not encouraging in at the moment the referendum looks like it is set or defeat. >> has a date been set for the vote? >> no and we expected the people to get one over the weekend and we did not. that sort of speaks to how well the campaign is going as well. the yes vote was absolutely crushing it, we would have a date for the referendum but we do not. the latest news poll which was out this morning shows the yes vote is below 50% nationally and in every state. that's important because you need a double majority. majority nationwide majority of states also have to support the referendum as well. now, it is weird to an outside

observer. you would think why would something like this that improves the lives of indigenous australians not have such widespread support? the problem is communications. there is no legislation yet, there is lack of clarity to the extent of towers that the body would have. into that arena we've seen the politics of doubt come in. to really easy for opponents to muddy the waters, so confusion in the campaign for that has been very, very effective. kathleen: you shorted tune into bloomberg radio to hear more from the big newsmakers and get in-depth analysis from the team, broadcasting live from her studio in hong kong, you can see them live on your tv screen. listen via the app, radio plus or bloombergradio.com. play more ahead, stay with us. ♪

♪ kathleen: warren buffett's berkshire hathaway posted gains as strength in the insurance business is countered inflationary pressures. vonnie quinn with the latest. inflationary pressures are not so easy to conquer. what is the secret? >> we see negative effects across the businesses through the last couple of quarters but this time around, we did see berkshire hathaway posting 10.04

billion dollar operating margin, $2 billion more than analysts were anticipating. that is quite a difference in opinion right there. as they say they had to deal with rising prices, a troubled market any dearth of deals. what saved them this quarter? strength in its insurance business. it saw a 74% increase in underwriting earnings to one and a quarter billion dollars. it benefited from the acquisition of allegheny which it did as an underwriter. and also geico performed way better than expected, the auto insurer. it had been unprofitable but it has been profitable for two straight quarters. more expense cuts, higher premiums and lower claims. there are things in the negative column including nsf, railroad earnings were down 25%. higher expenses, more headcount in fact, which is all part of the same bucket. and also rising costs eating into that.

interestingly the continued rate rises were helping them. they have a cash award almost at the record ever cash award at 140 $7.4 billion in earning a much nicer yield on that then it did before. we know buffett continues to buy treasuries. he said last week another $10 million plus treasuries this week in spite of the downgrade. haidi: what is berkshire's positioning in terms of investment going into the second half? >> it has become a net seller of equities and its holding of apple which has expanded also helped to the $10 billion in operating profit. apple is up this year. this quarter it sold 12.6 billion dollars and bought 4.6. to the tune of $8 billion. that is the theme throughout the year. last year berkshire had bought $34 billion worth of stocks. this year it's already sold more than 18 billion stocks.

so positioning cautiously. it is buying back less than it was. this quarter it bought back $1.4 billion of its own stock, down from 5.8 billion dollars in q1. elevated valuations, another reason it is finding more acquisitions. haidi: bloomberg's vonnie quinn. let's look at some other corporate stories we're tracking. saudi arabia's sovereign wealth fund has reported a $15.6 billion loss for 2022 after the value of investments and tech ventures plunged. the fund posted a revenue of $25.4 billion. even with the loss its assets grew to 596 billion dollars from 528 billion in 2021. indian conglomerate reliance industry expects shares of its financial services building to be listed soon. it's hoping to create india's largest nonbanking lender.

chairman says the new entity is expected to unlock value for shareholders. warner bros. barbie movie has topped $1 billion in global box office sales in its third week of release. it's the second film to hit that mark this year, the other being universal's super mario brothers. that is just about it. daybreak: asia is next as we count down to the start of trade across asia this monday morning. asian equities are set to fall after a reversal of the u.s. rally. lots of decisions and china data expected this week and mulling over where the fed goes next after those jobs numbers on friday. more to come, this is bloomberg. ♪

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