shery: you are watching "daybreak asia. haidi: the top stories this

hour. stocks are set for a positive start after earnings reports, treasuries are falling. chinese deflation danger growing . softbank's vision fund set to return to profit. we are getting a slew of trade data from around the region. we see the goods trade surplus widening. we are seeing the current account surplus widening. this as we continue to watch the won as a key currency pair, sentiment has been souring. not just south korea, always a

bellwether when it comes to those first 20 days. we are expecting further weakness. the goods trade surplus is widening to $3.985 billion, the current account number coming at $5.8 billion. shery: take a look at how u.s. futures are trading, we are seeing a muted picture. the s&p 500 is being led higher by financials. there is a lot for markets to take in this week. we were talking about cpi numbers totaling more than $100

billion but the market has to digest. we're talking about more stability and investors are focused. took a bit of time for digesters to digest. annabelle: the bond rising. investors have been wrongfooted a number of times over the past few months with surprising strength and resilience but as you say, it is u.s. inflation data that will be closely watched.

the moves we are seeing in the bond space monday opera writing, in new zealand, we're seeing the 10 year yield rising. we are seeing a retreat. in terms of the outlook for equities, it is mixed into resume -- the region. in japan we have sony, softbank, the key is whether the vision fund with four straight quarters of contraction. it's a countdown to inflation data. haidi: it's looking like a q. week, let's bring in stephen engle.

official data suggesting continued downward pressure. >> the anecdotal evidence has been mounting quite a bit and that's likely to back up anecdotal evidence. there is no one chinese economy, to be fair they are traveling and trending. they are not buying properties unless the prices keep going down. they put in a lot of new orders with the expectation there would be pent-up demand. the input costs have come up and

you are seeing retailers/it even further. that's the anecdotal evidence, they are trying to move product. producer prices have been in deflation for nine consecutive months. i think the cpi temporary deflation in late 2020, court prices were the main driver. poor prices were down, it was temporary, this time it's much more fundamental.

shery: what are we expecting from trade numbers? >> we're expected to see exports with higher base effects from a year ago. exports likely fell 13.2% in july expecting a 15 went a percent fall. imports likely fell for a fifth month in a row. back on the deflationary issue was the political pressure, cpi and inflation is all raise a critical component and sentiment in china. now it is deflation and anecdotally some economists are

telling bloomberg they are being told not to talk about deflation . shery: top fed officials are weighing in on the hike versus pause. when it came to the speak i characterize it as hawkish. there is so much nuance. >> i would say you have a little bit of everything. one day after two fed officials that seemed to indicate maybe it

was time to pause but michelle bowman said she thinks there is going to be and need for rate hikes. she is expecting raises. >> expect additional increases will like to be needed. i will be looking for evidence that inflation is on a consistent downward path as i consider whether the fund rate will be needed. >> she says inflation is still above the target and the labor market continues to be tight.

john williams said it's an open question if further rate hikes are needed. he says supply and demand imbalances must shrink, think about the labor market. a shortage of workers, he is talking about wages. he expects the fed to keep a restrictive stance for some time though he does say rate cuts could be warranted. he said all this on friday. the headline was 3.3%

year-over-year in june. base effects expect the headline cpi, the core cpi supposed to go from 4.8 which is way too high. still have to debate, the report is flighted and for now, i think they are trying to make up his mind. haidi: as are we all. coming up, the ai frenzy. we are previewing an earnings report. how equities could surprise to the upside. this is bloomberg.

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spending, what

could drive gains? >> simply there is so much. shery: is there also a relative growth story? >> i am not sure but it could be.

certainly there is that potential, in the u.s. it's a different story, i have been in the camp all year that we will have a bumpy landing, strategist have shifted so much to the point where most are in that i now seem pessimistic, the reality is the fed has been tightening so aggressively and not have some damage. that's why i believe it will be a bumpy landing. >> how are you positioning ahead of cpi numbers? >> we try not to take that path.

we're in the midst. it's going to take some time for a significant trend, we might not get every print looking perfect but we are moving in the right direction and that will continue. our expectation in terms of equities as we could see some headwinds. there is some digestion that's likely to occur as the stock market prices in something something more realistic, there is some optimism rate cuts will start soon, i think it's unlikely.

we are likely to see stocks discount the economic recovery because the bumpy landing will be relatively brief. shery: jp morgan is saying is it compelling enough? >> i am a big believer in diversification. that means investment grade credit which looks attractive, some treasuries and locking in the longer term yield makes sense but i think it's all about being well diversified. before you know it we could see markets discount the economic recovery which could bring about more interest and better

performance for high-yield. i think of fixed income as an attractive area after years of low yields. there is a lot to choose from and we want a diversified fixed income asset class exposures. haidi: we talked earlier about china and japan, is it an either or proposition? full steam ahead. >> i think we want to be cautious short-term, most if not all good news is priced in and we could have downside in terms of policy support. still, it could create some headwind for japanese equities. the opposite is the case for

equities, i believe strongly in being broadly diversified both in fixed income and equities. shery: great to have you with us. get a round up in today's addition of j break. -- daybreak. you can customize your settings so you only get the news you care about. this is bloomberg.

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ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh shery: welcome back, ubs is

doing so much right now. >> the combined, 40 appointments announced monday. they are going to revamp the investment banking division, some have been promoted, some came from barclays and other banks and the new chief of staff. separately, ubs is trying to capitalize on presence in the united states. it's holding onto 12 investment bankers from those regions in order to beef up relationships in that area.

we are reporting jeffries is taking 20 of the bankers that are going to be homeless, reading one of the businesses credit suisse is pretty decent had, a private fund group. there was a lot including the massive rebound and it never had that much appetite, slumming that down. eventually they will be 36,000 or more fewer. haidi: how is the aipac region going to be affected? shery: we are seeing the dwindling of numbers. those jobs will start getting

let go of from what we can understand. reuters is reporting those hubs will go. at least in china, the talent there will be unaffected is the firm is selling. little bit of good news but generally not fantastic news. shery: other leadership changes we are tracking. the tesla ceo has stepped down after 13 years. he was considering a contender to succeed elon musk as ceo. he will continue to serve through the end of the year while the chief accounting office takes over cfo duties.

tesla is the largest. cathie wood told us she will miss his presence. goldman sachs researched chief is leaving the bank. goldman announced his departure on monday. he has no plans. we seeing a rebound in oil prices after it fell in the new york session. we have seen 4% of gains for wti over the previous two sessions and now investors are firmly focused on what happens in the black sea.

drones are hitting russian oil tankers that have highlighted the threat to fuel flows. it capped the longest rising street. we have seen investors awaiting cpi data, not to mention treasuries auction take a look.

still ahead, the next guest highlights the strategic importance at southbank. this is bloomberg.

shery: breaking news edit japan. this missed economist expectations we would see growth

of 3% especially we have seen a revised .9% when it comes to real cash earnings for the month of may in japan. inflation is having an impact across the board, household spending, another month of contraction. taking a toll.

annabelle: actually, one of the best performers in the space is the third best topics bank index.

they are saying further gains are ahead. we are about 30 minutes away from the open area coming online , up 3/10 of percent. there are some key earnings coming out earlier this week. sony is standing out. shery: after five quarters of losses, our next guest companies say they are one of the most misunderstood.

great to have you with us. doesn't mean you're a bit more optimistic? where do you see growth? >> i am optimistic about this order, i think the vision found numbers will come in because technology has better market performance. the news is very exciting but all the indications we have is the ipo is moving very smoothly. remember one third of the earnings are part of the japan business, those guys reported

numbers the last few days and they are really strong. that was governed by growth. those were indications for the group as well. shery: bloomberg intelligence expects a chance of a buyback program. there has been a lot of focus when it comes to buybacks. are we not focusing on the right thing? is that the main story? >> the cfo has put in practice buybacks when they have received exits on vision fund positions. it should not be seen has a

buyback story. southbank maintains a majority. those would be solid earnings. complicated company is doing something like nobody else in japan trying to invest in those platforms across the world in many different fields, do it quite secretly.

at least it was that for about 10 years. to rest the story of the enterprise, that's been a struggle for the market and i think over time, profits are coming through, people start to realize this is been a successful investment where it all of the bits tightening into each other. those companies that use chips in the vision fund.

looking at the history is good. yes they have made mistakes. those mistakes do not try to hide anything. the majority is now worth three times that. those records about the future of execution will allow for great returns.

shery: can we talk about the valuation gap >>. the valuation will help softbank. that is why softbank is not exiting them right now. those numbers are talking about less even given the current

leverage. people have only just realized how important the aa market is and how important it will be in the space. we have had the story for a long time. haidi: great to have you with us. it's get you to some of the other corporate stories. the annual forecast is being

adjusted. they have authorized a one billion dollars for technology. demand has been unprecedented. shares have announced selling. leaders after rising interest rates. the ceo told us exclusively how they are set to benefit away from cash.

>> i think the biggest opportunity is that japan is steadily becoming a cashless society. when it comes to digital banking, we are hearing questions. our job is to concern the reliability of services. it's a great challenge. >> speaking of opportunities, what do you think of the policies?

do you think it's going to help your business? >> the majority of our assets have floating interest rates. probably the highest proportion among japanese banks. what does this mean for us? most will increase in tandem. the decision is up to the bank of japan but we believe the end of negative interest rates is a huge chance for us and will result in a significant reason profits.

secondly, a fairly rapid pace of increase which allows us to enjoy the impact of rising interest rates maybe even more so than other banks. shery: that was exclusively to bloomberg. coming up, we are tracking decarbonization efforts from australia. the latest data and outlook, and i. this is bloomberg. ♪ % ohealth customers surveyed reported taking healthier actions. because they know health isn't just a future state. health happens now. start your dna-powered health journey today with personalized insights from 23andme. did you know you can get someone to shop for you?

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decarbonization efforts shows it's close to having one third of power generation come from renewables. let's get to the head of australia research. how did australia get to this point given they had a slow start. what is your report card on their efforts? >> that might be a bit of an

underrepresentation but as always it is great to be here with you. when the first half of 2010, into the country's national electricity market. australia has said a volatile relationship.

they are forming the bedrock. shery: given the challenges. i will date the momentum? it will have to accelerate efforts in deploying renewable energy, australia has achieved a 43% reduction on carbon emissions from 2005 by the year 2030. to get there, the government has modeled it would need 82% of renewable energy for that 82% in

just under seven years time. challenging news for the government indicates the investment in renewable energy are beginning to slow. investment in utilities has fallen by 65%. if we look to modeling exercises , we see by the year 2030 out of the current policies, australia is likely to fall short of where it would need to be area now, eyes have turned to the government to show policy mechanisms.

shery: what about efforts to decarbonizing the rest of the economy? more needs to be done when it comes to the deployment of electric vehicles. ev's made up just over 4%. in the first half of this year, they are making over 8% of passenger vehicles. this is a good story for a country that has yet to form foundational policies to drive vehicle sales. they are expected to release details later on this year.

if we look further afield, the government has committed itself to ambitious targets to achieve 89% compared to passenger vehicle numbers by the year 2030. once again, the government has a lot to do with it. shery: we have breaking news out of japan, we are getting the current account surplus for the month of june and it's coming in at 1.508 trillion yen. this is slightly larger than economist expected but it is still narrowing. adjust and surplus coming in at 2.345 trillion yen. a lot to do with the trade surplus which has widened.

now we have a trade surplus of 1.5 09 trillion yen. a lot to do with the exchange rate and taking into account external demand. we have more to come. this is bloomberg. ♪

haidi: korean stocks are related to superconductors and jumping by the daily limit. semiconductors are not just type. >> it could be the breakthrough we need for quantum computing from a commercialization expected with high-speed trains, it could change so many things. we lose so much heat and data centers. haidi: let's bring in our asia stocks reporter. forgive me for that exuberance.

let's talk about semiconductors. are they related to breakthroughs and how the jetta meant is this? >> >> good morning. the south korean stock market has been captivated. we have seen several stocks rallying. even at the exchange warnings that these are abnormal, and many have flimsy links to the superconductor breakthrough material, even one company has come up to the public saying the company does not have any

relations or ties with the developer call. shery: we will be watching those stocks at the opens. this is bloomberg. ♪

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haidi: this is bloomberg asia counting down to asia's major market opens as investors signal

interest rates could remain higher for longer. all of this ahead of u.s. cpi numbers and plenty of eco-data from asia as well. >> we're in a bright position. haidi: we are expecting deflationary indicators to come in as well as domestic activity numbers. interesting to see what the investor reaction is given cathie wood's it says is she is maintaining her position. let's see straight to the market open. >> it is a very heavy ego day across the region today. kicking off with japan because we did have that wage growth number coming out about half an hour ago. essentially, it showed wages unexpectedly slowed in june. that doesn't decay perhaps the

labor market is losing a little bit of steam and a dust cloud the prospects for any policy normalization from the boj. you can see here that stocks are taking a little bit higher but taking a lot of their cues from the wall street session as well. in japan, we are focusing on the heavy influence of earnings coming through. we have the likes of softbank reporting later tuesday. also others in the session tuesday. we did see toshiba maintaining therefore your operating income forecast. we do have that stock moving a little but higher as we get trading underway. in korea again, it is the focus on earnings coming through. we had a couple of names after the bell monday. see korean airspace. that stock is lower as we get trading underway. missing estimates in terms of what elsewhere watching, that economic focus today across the

region and in korea, it was the june current account surplus. it came in at $5.87 billion. essentially, that wider current, economists saying that could easily but a pressure we have seen in terms of market reaction. so far, the currency is a little bit steady. we did see a rising to a multiweek high against the greenback on monday. in australia, no economic data expected there. still, the heavy influence or a lot of focus coming down to what comes out of china. we will have trade data on tuesday. exports expected to show a growth dragon the country. that will be quite closely tracked spouse trillion markets given the heavy trade relations between the two countries. for stocks, the asx 200 a lilibet higher. we will wait about 10 minutes

for to be fully underway. brent crude, just a little bit higher. investors still trying to assess the moves we saw with ukraine downing vessels in the black sea. weeds as well, another contract we are watching. investors court of shrugging off some of those attentions in the black sea in terms of supply disruptions. waiting for those to start to materialize. haidi: let's get some market views now. great to have you with us. it feels like investors are in a bit of a trading war mode waiting on the fed and pboc. this week's data is expected to solidify these downward expectations for the chinese economy. how are you investing around that narrative? >> i think we focus on companies

with good fundamentals where a lot of valuations have corrected over the course of this year on the expectation that consumption of behavior has been weakening as we cross from the reopening a boom that we saw in the first quarter. hoping for a better than expected earnings season in 2q and forward guidance of the second half because a lot of the conference shies from giving way to bullish an estimate. haidi: you talk about valuations and it is hard to deny how compelling china valuations are. is a turning point? do you maintain patients? how do you get exposure, if any, to the china directly or indirectly through companies outside of china? zhikai: you look at the markets we ingest -- invest in and this is probably the cheapest in the

region. the expectation is that we had a fairly good series of policies support from the very top with the political bureau about two weeks ago. hopefully, we will see policy follow-up in terms of actual moves to support the economy and consumption as stated in the overall political statement. we are waiting to see if that follows through but i would say most of the companies we are invested in at this point in time, probably allowing expected stimulus measures should just looking for the earnings to hopefully carry us through over the course of the year. shery: we have seen local currency bonds have been the standout trade over the past year. are you seeing that turn toward stocks now? zhikai: i think we have seen it in a lot of areas if you look at countries like mexico and brazil. they have done very well this year in local terms and local equities position.

i think some of the shift is starting to happen. for some of the higher risk market, there has been a resistance to equities because the bond market has been rewarding investors with high returns given the high rates of local interest rates at this point in time. we are starting to see some of that right now. shery: what are the risk of slowing economic growth? the expectation right now is that markets will grow at a faster pace but can this trend reverse? zhikai: i think this year, we have been somewhat lucky. we've also seen a bit of revision in terms of developed markets growth as we go into this year particularly from the u.s.. i think the expectation we might get a soft landing has helped market sentiments. the fact that we are now at the tail end of the fed rate hike

cycle for this political cycle also is help for a lot of the emerging markets. we have actually seen a series of cuts already and some of these markets. i think this is a helpful monetary backdrop for economic growth of the markets going forward. haidi: when you take a look at the major driver of the first half rally clearly being ai and chip related stocks, is that a theme that continues or do you look at spaces where there is better valuations and what has been the opportunities to you having been through the bulk of the earnings? zhikai: a lot of the earnings, we are still actually in the midst of it particularly in hong kong. in terms of ai, in asia, there are not a lot of ways for investors to play this if you look at the distribution of revenue. copan is a manufacturer a lot of this, the key brains of the ai

still benefit. if you look at some of the movements in the smaller names, the percentage of revenues attribute to say ai related services is actually very tiny but the share price have moved forward quite a bit already. we are still focused on the companies that have a direct impact on manufacturing some of this ai chips needed for moving forward. haidi: always great to have you with us here in hong kong. belle, from ai exuberance to superconductor exuberance, this was such a dominant theme last week. annabelle: it has been quite an interesting set of claims coming through and to put it in context, essentially wooden vectors have reacted to, these are some of the big superconductor stocks. the headlines that i've yet to

be proven but essentially, it could be claims of a possible breakthrough in the technology. what superconductivity returns to his the concept of transporting electricity with no resilience -- resistance. this is something that has the potential to revolutionize the entire energy industry. so far, it has only been achieved either at extreme temperatures or at pressure as well. claims that this could be a breakthrough to find the first room temperature superconductor technology is obviously something offering a lot of potential to investors. that is why we are seeing a lot of these stocks trading up for a number of days now at or near the daily trading limits. investors should be quite cautious given these expectations or claims have yet to be proven by technologists. in korea today, it is also the

earnings focus coming through as well. we do see a few stocks sliding. these three at the top amongst those that reported earnings mrs.. that is how investors are reacting to those results so far. in japan as well, let's change on and take a look at toshiba because we are also seeing that stock moving a bit higher. not quite the moves that we saw in the u.s. session because we saw adi's up 2.5%. we did see a surprise operating profit in the latest quarter. also, the company saying the gip or japan industrial partners will start its tender offer for the company on tuesday. changing on because there is another stock and this one was flagged by haidi in the last hour, this stock -- haidi: [laughter] annabelle: it is not a great story, but essentially, this is a company that faced some claims

-- actually, they'll play -- apologize for a food contamination but a video went viral with a producer of lunchbox products, we saw a cockroach investing one of its audits on friday and a viral video. the company apologize. the stock dropped into the close. maybe investors are perhaps forgiving the company. shery: it is a gain of almost 2%. coming up next, china's muted recovery now causing a real danger of deflation. we look into why falling prices pose a greater threat this time around. this is bloomberg.

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haidi: deflation pressures are mounting in china on what is shaping out to be a q. week for economic data. we are expecting consumer prices to come in in deflationary levels at a slew of domestic activity indicators as well. i saw something the other day which was an ordinary titus and -- chinese citizen saying the

ordinary chinese citizen feels poor. his leadership worried about this? >> absolutely. usually inflation on the other side. rising prices and the household expenditures go up. they are always worried about that could lead to some sort of unrest and the like. this is also worrying to the government because people are not spending. it potentially could undermine some of the stimulus efforts and the talk and narrative that the chinese officials and regulators are propping up is that everything is fine. we got this under control. there is no evidence of lasting, prolonged deflation but the anecdotal evidence and now the data is suggesting otherwise. that is why we have gotten anecdotal evidence from people who don't necessarily want to give their full names. but economists in china telling bluebird they have been instructed or told or encouraged by regulators and other people in government to deemphasize the

deflation story. because that goes against the government's narrative. we will give you the anecdotal evidence. we have talked to retailers, manufacturers. they slashing prices. in automobiles, there is a price war going on. theories on crackdown in the property sector, people not buying properties. they are traveling after three years of being locked up and pens out. services are ok, but it is the goods. producer prices, that is the factory gate, deflation has persisted for nine consecutive months. it is going to be a 10th month when we get the data tomorrow. we have already had five consecutive months of month over month deflation. this will be the first time on a year-over-year basis that we have seen deflation according to the consensus estimate of economists surveyed by bloomberg. the numbers say deflation is taking hold. shery: trade numbers today, what

are we expecting? stephen: weakness. when we can extrapolate from the deflation story, the last time we saw temporary deflation was at the end of 2020, early 2021. cpi deflation was there because port prices came down and food is a major component and pork is a major component of the food element of inflation. you see fluctuations in cpi. this time, it is different. you are seeing fundamental weakness in consumer demand and external demand and that is going to be and has been reflected in the export numbers and import numbers. we have some charts. exports likely fell double digits. 13.2% in july in dollar terms. bloomberg economics, they are here and have a whole team of economists. they are more pessimistic. they expect a fall of 15.8%

year-over-year for exports. the government might not want us to talk about it, but the numbers suggest a different narrative. shery: i'm glad we are talking about it. it is a big week if you are a china watcher. a big round of those stories. you can get that in today's edition of daybreak. you can of course always play around your settings so you just get the news on the industries and assets that you care about. this is bloomberg.

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you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh haidi: one of wall street's most loved ai stocks wrap the

spotlight in extended training plunging as much as 12% before rebounding. we are talking about apalantir. investors appear focused on growth. sue: yes. the company recently launched its government site. when you have the such huge multiples for this stock which is more than 30 times sales, that is what a lot of investors are looking for. what are the sales? according to bloomberg intelligence, investors were looking for 30% growth and they got lower double-digit. that initially had the stock plunging as much as 12%. there has been a lot of excitement on this stock. a call with investors ahead of

the earnings. the ceo described the demand for his software is unprecedented. unlike anything we have seen. a lot of investors were expecting more. where they did get was bullish news. it authorized one billion share buyback on the strength of what it called transformative traction for its ai technology. some analysts said it'd -- its guidance was only at the midpoint of what it had forecasted and again, they were expecting more. it did beat estimates. here is what is important. the company's commercial revenue grew faster in the u.s. and other markets became in slightly under analyst estimates going 10% during the quarter compared to a year ago. that is why you saw the real wobble in extended trading. notice the year to date has been up in a huge way. a lot of investors looking for

more growth to propel it further on the really optimistic projections. the ceo believes that his company will become one of the most, if not the most important software company out there. ai analysts are pointing out they in a very unique niche for ai. they have a lot of government contractors. with a deal with is what is called geo station eleven analytics. they allow the government to track terrorists. they allow cyber terrorism tracking. in terms of general applications, that is still a question mark. shery: morgan stanley warning the ai stock bubble could be in its final leanings? su: if you drop into the bloomberg, you can see what morgan stanley was talking about. we all know these ai stocks have been on a tear. nvidia is out front. palantir not far behind.

up 180 percent. it more than doubled, up 132% just in the past quarter. what are the morgan stanley analysts saying? the bible in artificial intelligence stocks may be in the later innings because they are looking at the other bubbles that they have studied which typically last for about three years and see run ups of roughly 150%. they are all up 150%. you look at the lowest number which is an index of ai stocks, that has been a bit more muted in its growth. the performance could return more than 20% more but they are starting to sound the caution flag. they believe that this is a bubble that is on the backside of the curve. shery: ubs is revamping the

leadership of its investment banking division as it moves ahead with the integration of its former ryle, credit suisse. we have some personnel changes, so who is going and who is staying? vonnie; this is one part of the story. a memo went out today. some people are staying at ubs and others are moving to their from other wall street banks and some are saying from credit suisse. just six of the appointments were made from credit suisse. on one hand, you have the big revamp and on another hand, it never had much appetite for the division anyway. at the same time, other banks are trying to capitalize on credit suisse's presence in the u.s. and americas. it is holding onto 12 credit suisse bankers to help lead its global banking business in the

region. it never had that much of a presence in the americas and is trying to read beef up the presence it did have. also seeing jeffries snap up credit suisse bankers. that is to tap into the private fund group which was doing well. jeffries is trying to expand in that area. in general, we know there are layoffs coming. it is 120,000 strong of a bank right now. that is not going to fly. about 36,000 jobs will go away from the emerged bank eventually. we are reporting it will be three rounds of job cuts this year. haidi: what about the asia-pacific? vonnie: already hearing about to hunt -- 2000 jobs will go away. writers already reported that 18 out of 100 are going to go away. 20 will remain. some of those remaining are going to be focused on areas outside of hong kong.

we also know china is not going to be affected because ubs is already trying to find a buyer for its stake in the china venture that it had. ubs about 18% year to date. investors liking some of these bits of news about layoffs and resizing and reshaping. again, not so great if you are one of the ones that has to look for a new job. haidi: let's take a look at how futures in europe are opening up. this after we saw a studying what it comes to european equities to start off the week after we saw broader markets across the region following the most in over a month last week. still, not a whole lot of good news to go off of. this, even as we saw the german

economy seeing industrial production falling for a second month. after the economy barely got out of the recession earlier this year, clearly there are still more hell wins and headwinds when it comes to growth in that economy. euro stocks, seeing a bit of stability when it comes to trading in the euro and bond markets. so much focus will be on the u.s. inflation rate going forward as well as how we see those treasury markets perform. we do have much more to come here on daybreak asia. so, you've got the power of xfinity at home. now take it outside with xfinity mobile. like speed? it's the fastest mobile service around. with the best price for two lines of unlimited. only $30 bucks a line per month. that's hundreds in savings a year when you wave bye to the other guys. no wonder xfinity mobile is one of the fastest growing mobile services. you really shouldn't walk out the front door without it.

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rishaad: breaking news when it comes to consumer confidence for australia. seeing contraction of 4/10 of a percent from the previous gain

of 2.7%. the overall was pat consumer confidence index coming in at 81, so a little bit of weakness from 81 to 83. we are seeing expectations on a deterioration of 1.5% from last font -- month. economic expectations one year i had fallen by 4% and by five years following by just about 8/10 of 1%. this coming as we look at the expectations for the rba perhaps the hike once more in november. anchor: that is priced in for next year. aussie bonds one of the bus stand the board, moving lower

nine basis points. when you take a look at markets, pretty muted activity overall because we are not seeing big moves in either direction. kiwi bonds a few points higher, but they pretty muted reaction. we saw treasuries in the prior session, so perhaps investors in a wait-and-see mode given there is academic data to come this week. u.s. inflation is the standouts on thursday. it is a key one to watch given it will tell us where the fed it will go next. we are also watching more economic data in china. we will have those trade numbers ahead of inflation on wednesday. in terms of market reaction, stock markets move a little bit -- a little bit higher for japan , north korea and australia.

earnings the big one because we had palantir, one of the key ones after the bell. superconductor stocks stand in out for another day in korea today. we have reports of a breakthrough possibly in superconductivity. to put it in context, superconductor technology refers to energy being transmitted with no resistance. it had only been achieved with extremely high temperatures so far. this could be superconductivity being achieved at room temperature. investors really excited by this proposal, something that would have the possibility to revolutionize the energy industry. but of course, those claims yet to be proven. investors could end up disappointed.

haidi: c.o.p. has reported 648 million u.s. dollars that reverse the prior year loss of 622 million. richard lancaster from richard lancaster joins us in the studio. great to see you. the benefit of lower fueling and coal prices was at the plate here even as we saw hong kong's recovery slower than we expected. do you see that being able to be sustained? >> what we saw was huge shocks in the energy markets over the past few years. we have the covid pandemic and that was followed by the russian invasion of ukraine, which saw steep increases in wholesale prices. we have not had a normal market for some time now.

it is early days yet, but what we are seeing this year are signs of economic recovery, growth in electricity demand in china has been steady at 5% per annum. in hong kong, very hot weather, just under 4% increase in electricity demand. the broad demand for electricity is growing. as we decarbonize the supply, we will see steady demand for electricity over other energy sources. this is the challenge we will face is how to decarbonize as quickly as we can, how to support that growth in electricity demand. haidi: what about the outlook for coal and gas prices? geopolitical concerns are not going away. we have climate weather and

other complicating factors. >> what we saw in 2022 was on steep rise caused by russian gas having to be replaced in europe. around 40% of europe about gas was from russia. that drove prices up very steeply. what we're seeing now is a slow and steady decline in prices. a softening of cool -- coal, oil and gas prices. that is where we are headed. shery: what options are you reviewing for your energy australia unit? >> energy australia is exactly the same as all of our businesses. they require massive investment in order to decarbonize.

we as a group have limited resources. we have to be selective in where we will concentrate our capital. in some of our markets, we have looked at the options of bringing in partners so we are not growing these businesses as a 100% owner. we are able to grow with a partner. we have done this in india. we are looking in australia as well to find partners for the energy transition there. it will require investment in specific areas, in energy storage as we replace our primarily coal-based generators there. we will need a combination of renewable energy and storage, which will require substantial capital. we are in the process of looking for partners there. shery: we are seeing buyers snap

up energy assets in australia. why hasn't that interest not translated to energy australia? >> there is a lot of interest in the energy transition and invest in -- investing in it. we are a long-term investor. we have a sizable business in australia with a strong customer base and a portfolio of assets. it is more a matter of finding the right partner. we want to stay involved in the market in australia and we are looking for the right partner. that could be at the enterprise level or at the project level. there are various ways we can find partnerships. it is a matter of finding good partners aligned with our objectives. haidi: what will be the most

pressing challenges in china in october? >> dealing with climate change. that will be a relentless investment and change in our entire industry. it is quite an exciting time. over the past 10 years the industry has gone through more change than i have seen in my entire career. the big challenge will be how to deep -- decarbonize this industry. haidi: great to have you with us, richard lancaster from clp holdings. this is bloomberg. ♪

haidi: pressure from foreign investors is driving japanese companies to look for more female board members. the government wants female directors to 30% by 2030. our next guest is naomi koshi,

the ceo of onboard, the company that trains women for board positions. great to have you with us. it is a fair to say the pressure to have more female leaders is coming from the corporate side? >> yes, right. now japanese companies try to put more women on boards due to pressure from investors. for example, this february iss change their board policies so there is no female directors. they recommend -- so now our japanese company is scared. in march, one of the biggest japanese companies, the ceo was almost denied.

investors are pushing japanese companies to have more female board members. shery: if we have a bigger push from the corporate side and the government, what is the biggest challenge to get female leaders on boards? >> the japanese government announced we should have female board members for listed companies. for example, we need 8000 female board members for all listed companies to achieve that goal. so we need a thousand new female board members, so we need more. my company on board provide seminars to female candidates. we train female candidates and

we introduce our candidates to japanese companies. so we need more female candidates to serve on japanese boards. haidi: you say some chairman and ceo's are they afraid of? >> so now we need more female candidates some many japanese companies ask us to find female candidates, so we introduce female candidates to japanese companies. so if there is no female candidate, the ceo might be denied at a shareholders meeting and also the japanese government released a new rule that we have to have female directors. so japanese companies are now very serious about it.

haidi: it feels like we have been talking about this topic with incremental progress for so long. do you think there needs to be more ways to penalize companies that are not hitting these targets? >> for example, in total 10.6% female board members. last year it was 9.5%. so it increased by 1.5%. comparing other countries, in japan still very few female board members when comparing to the united states or the united kingdom. in japan 10 years ago there was only two female board members.

it is very slow, but it is increasing. haidi: naomi koshi, cofounder of onboard. be sure to tune into bloombergradio. we are broadcasting live from our studio in hong kong. more ahead. this is bloomberg. ♪

shery: we are watching keep up entertainment company hybe gaining ground in the session. the reported consolidated operating profit. 81.3 billion net income. 117, beating expectations. sales at 621 billion yuan. they beat analyst estimates. haidi: i know you and i are not super fans of bts. i do find the entry when it

comes to these companies, as well as the big market influence, really fascinating. we expect entertainment stocks to drive the etf market. tie this together for us. why is this so influential? >> korea's etf market is very much a thematic focus and keep up is a very big deal right now. -- k pop is a very big deal right now. they had squid game in 2021. there is huge interest in this. there is also a k-pop etf. shery: what is happening in korea's etf market because of this? >> the korean market is trying to bank on this thematic. people love estimated the k-pop

industry can be a $30 billion market. what we are seen in south korea specifically is a race between depend on asset management. the account for these two issuers account for 80% of the market. samsung is currently leading with 32 billion in assets. they acquired global >> in the u.s. and they surpassed 100 billion globally. we expect them to be a top player going forward and they can even be top 10 globally. haidi: social media a big influence, but i love the taxi driver influence. tell me about that. >> a lot of people are turning to social media to get their information. they want unbiased opinions.

there is a taxi driver turned influencer in his 80's who has managed to get a huge following. they started during covid when he made videos talking about etf's. etf issuers have started to send them packets because he has done so well. some of his videos have one or 2 million followers. this is gaining traction, he is appealing to both old and young. they are tired of traditional banks and getting investment advice from people who are getting kickbacks and rebates so they're going to social media. it is also appealing to the young because they are low cost and transparent. social media is very popular in mainland china as well.

80% of the market retail driven by etf app. very large followers in social media. haidi: let's get you some of the latest corporate stories. shares in paytm surging after its founder struck a deal to raise the stake in the company. goldman sachs's research chief is leaving the bank. he has no plans to take on another job immediately. the positionable remain vacant for now. -- the position will remain vacant for now.

a surprise shakeup at tesla. cfo zachary kirkhorn has stepped down after 13 years. kirkhorn was considered a top contender to succeed elon musk. he will continue to serve in an unspecified capacity until the end of the year. tesla is the largest individual contributor to ark and ceo cathie wood told us she will miss kirkhorn. she also says her funds are maintaining positions across chinese equities even as the country faces deflation and currency depreciation. she told us about the risks and opportunities she sees in china. >> common prosperity suggests

the government is aiming for companies not to be too profitable, but to help the country to expand and make the lives of everyone better, which is noble. that is what we all want, to shrink the divide between the rich and the poor. we are focused on a few things there. on the fact that china is exporting deflation. and it is one reason we think the world will face more of a deflationary period here. it is also very interesting to watch the yuan. the government would be stimulating more aggressively if the yen were a little stronger. it has been weakening. they are careful about their currency. i do not think they will be able

to stimulate as much as people might like or expect because the yuan is showing fundamental weakness here. what is so interesting about that, the fact they are exporting deflation and the yuan is down, that is a double whammy. from china's point of view. normally when they currency is down, you see inflation. haidi: cathie wood there. take a look at how prices are trading at the moment. not a lot of change when it comes to the dollar in the new york session, this off the back of treasuries fallen again ahead of cpi numbers and the options from the treasury refunding event later in the week.

the dollar gaining against the japanese yen, which is weakening toward the 143 level. the korean yuan also weakening as the aussie holds stating. the offshore yuan holding steady. take a look at how futures closed in china as we await the time trade numbers as well. exports expected to fall for an 11th straight month. data also out today. the market opens in shanghai is next. this is bloomberg. ahhh

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david: good tuesday morning, it is 9:00 a.m., welcome to bloomberg markets.