>> good morning. welcome to "daybreak: australia." >> we are counting down to asia's major market opens. >> i'm kathleen hays. the top stories this hour, markets struggling for motivation even as a team inflation report builds the case for a fed rate skip. a renewed jump in treasury yields, weighing on sentiment after a week 30 year bond auction. >> alibaba returns to revenue growth across all major divisions defined china's economic worries. but there's nothing new on the plant slip. >> and china's market regulator will meet developers and financiers friday seeking solutions to a worsening property crisis. let's take a quick check on what happened on wall street today. stocks started on a fairly decent rally. the s&p 500 was up more than one person at one point after the july cpi report weight suggest

that inflation is going back to its two-year ago level, something the fed could pause, when it comes to rate hikes. but later mary daly said the fed still has work to do, so stocks lost a lot of gain. the s&p barely gained at the close. barely positive. the other thing, look at these bond yields. tenure up to 4.10 -- the tenure of to 4.10 -- the 10 year, up to 4.10%. the 23 billion dollars sold at 4.2%, the highest yield since 2011. you can see how that's reflected now. that's another thing weighing on stocks today, the rising yields are not good for stock market rolls. >> let's bring in bloomberg's u.s. economy reporter for more. what sort of struck you from

that inflation report? >> it was another step in the right direction. we saw the two smallest back to back gains in that key underlying core inflation gauge and more than two years -- in more than two years. it adds to this other optimism that we've seen where you pair that with the low unemployment rate, the stronger-than-expected economic growth, and it really shows why the narrative has largely shifted on wall street towards this possibility that the u.s. could over a recession that has to be six months ago, and folks are talking about it like it was an inevitable thing. >> the president of the san francisco fed mary daly saying they have more work to do, they can't start pausing on rates until they see inflation getting closer to 2%. seems like there's a pretty good debate at the fed now. >> there is. there's a wide array of opinions

right now. this is the kind of discourse we knew was coming when we got to a point like this. the main issue is, you look at data like today's, you put it with last month's, it doesn't seem like inflation is on this downward path. . the question is whether it's on enough of a sustained downward path to get to that 2%. it's really hard to make that case for a lot of folks, when you see the rest of the economy doing so well. and folks have jobs, they are out there spending, you saw gdp pickup when it was expected to decelerate, so you've actually seen in terms of thinking about the banks, one set expect a recession and ones that don't, those that are sticking by the recession calls are pointing out that strength and saying, the economy could keep growing. but that doesn't mean inflation's going to be at 2%. if you take the fed at face value that they are going to get inflation down, those folks are standing by that you've really

got to see some softening of the economy from here. >> we actually have seen lower inflation translating when it comes to households? >> that is a sticking point that i feel passionately about. when we talk about inflation, big picture, yes, things are slowing down, that's great news. but lower inflation does not mean falling prices. and for the americans facing these prices, they are looking at higher prices than they have seen on a level basis compared to a year earlier in a range of goods and services. particularly in this report, it was difficult to look at because you saw that american households' necessities were going up. use gasoline prices rising and groceries rise by some of the strongest that we've seen since the beginning of this year, utility prices were up, car insurance was up a ton. so for folks when talking about the economy and we look around,

what folks are feeling is really high prices that continue to crimp and hurt their household budgets. >> reade pickert, in washington, breaking down today's cpi report. markets struggled for direction. even if the fed pauses in september, betting weighing a little bit more and socks on the close and they did in the morning across as a reporter emily joins us. what's the takeaway in terms of what the market is seeing here? >> in the morning, it seems like the cpi report was pretty bullish. we saw the stock market rally. i think there was a lot of talk of, this means that we won't get another hike in september. if you hours into the trading day, traders realized, that was already the consensus view.

the day ended really unchanged. that reflects that investors really didn't get that much new information from the cpi report. the fact of the matter is we still have a lot of data left ago before the next fed meeting. there really hasn't been a big negative catalyst. have a lot of investors coming on bloomberg tv that i speak to talking about how inflation is not going to be able to get down to 2% quickly. but so far for the stock market, we haven't really seen a big catalyst, and every dip has been bonds right now. >> there are still people that are not in the soft landing camp. guggenheim saying the next shoe to drop be credit? >> guggenheim and the chief investment officer about 220 -- of about $225 billion spoke to me on bloomberg to be earlier today talking about how credit is the next shoe to drop. she mentioned she is watching

rising bankruptcies and delinquency rates coming up, let's take a listen to what she had to say about the fed and the soft landing narrative that she's not exactly subscribing to. >> we are going to keep rates higher for longer which was actually what we anticipated. and they are going to continue to work to slow down the economy. frankly, recession seems to be off everybody's mind but i think that that is probably a mistake at this point in time. >> she really on the defense here. she is avoiding lower quality credit and position in higher quality credit. she also mentioned she likes u.s. treasuries year. she said we have been in a stable trading range. may be not day-to-day. but she likes how investors can maybe spark some cash there, sit in the treasuries and wait on the sidelines and once we see the credit purge happen, then there may be more opportunities

in lower rated credit. haidi: bloomberg's cross as a reporter, emily graffeo. belle is taking a look at the set up. happy friday. annabelle: clearcutting onto the open of sydney, soul, and tokyo a couple of hours from now, you can see here we are seeing a lot of red but when you take a look at the numbers, it's fairly range bound which tells us overall trading is looking to be pretty subdued in the session today. it's really that realization that investors are still coming to. we did see the inflation print coming out. the fed likely to pause. importantly it is still traders coming to that realization that a cut is not on the horizon anytime soon. the biggest reaction has been in the japanese yen. you can take a look at that, close to the 145 level -- 146 of course is the line marked officially from the boj. still at a point now that sees jawboning from japanese

officials. the yen at a level we haven't seen since 2008. the big focus in asian markets on earnings it still a butane john it is that alibaba amongst others. we had that earnings report out in the u.s. we saw a big revenue beat coming through for the e-commerce division, alibaba's bread-and-butter essentially. sales coming in at around $32 million for the quarter. what is interesting, when you take a look, there is a sales story, we are also looking for any sort of update perhaps on what's happening with those spinoff plans but not a symbol of the seven analysts asked for any details. the company also reluctant to talk about it as well. something else we are tracking. >> something you would've asked him sure. a china securities regulator is said to be convening an urgent meeting friday with property developers and financial

institutions with troubles across the property sector continuing to mount. losses in the first half after missing to dollar coupon payments this week. let's bring in our chief north asia correspondent, stephen engle. we love an urgent high-level meeting, right? >> do we love that? [laughter] yes, the watchdog essentially according to sources telling us they are going to hold an urgent meeting today friday. perhaps i would assume it is going to be in beijing. interestingly, you mentioned country garden which was once the world -- china's biggest property developer by sales. it is now number six. it's been a bellwether. it is one of the few major property developers that hasn't defaulted yet. it missed those two interest payments earlier this week and has a 30 day grace period. but right now the cash position is a problem for this company as is for these developers. what can this urgent meeting

accomplish? they are going to get some major developers. i'm not sure who or which ones. but not country garden according to the sources. they will not be there. essentially financial institutions which the government is trying to stimulate lending to the property sector after that several years long crackdown essentially to whittle down the debt woes in the sector. it is a major pillar of the economy obviously that needs a resolution, but there doesn't seem to be one. if you look at the dollar bonds right now, you can see country garden plunged 59% in the past month. we can change the page and look at the stock chart, which has a similar ski slope downward. at small 30% in the last month. done more than 60% year to date -- it fell 30% in the last

month, down more than 60% year to date. it is run by one of the richest women in china. and it is seen as strong pillar of the property sector but now facing dollar bond defaults. we have to watch the space very closely. kathleen:kathleen: there is adversity even in the property market in china. this is a way that country garden echoes evergrande. there is a sense that they may be looking at that billionaire chair, that woman to dip into her fortune. >> that is what creditors are looking at because that is something that china evergrande's founder had to do essentially. country garden, i mentioned a minute ago the chairman is essentially one of the richest women in china. she has a fortune estimated about $5 billion. and guess what? she's getting a dividend payment later today from her personal stake of upwards of $20 million. so will she be pressure

to dip into her personal pocket to pay for some of these coupons on the interest that is due? much like china evergrande's founder reluctantly had to do. this is a company that is faced with a cash crunch. the first seven months, attributed sales fell 35%. late last night in a statement to the hong kong stock exchange, country garden said it expects to report a multibillion-dollar loss in the first half in addition to an earlier forecast. we knew it was going to be in trouble but now it is putting a number of a loss of between 6.2 billion u.s. dollars and 7.6 billion u.s. dollars. when those attributable sales are dipping, revenue is not coming in, buyers are not lining up around the block to buy these properties, it's a serious problem for one of the biggest bellwethers in the property sector -- former bellwethers.

>> the son of the reasons there is this emergency meeting today to look at all of this. still ahead, more analysis on the latest he was inflation report. why they expect a short and shallow recession by year-end. and first we talked investment strategy with oaktree, seeing opportunities and direct lending -- in private credit and direct lending. this is bloomberg. ♪

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>> the numbers this morning were close to what we thought. >> serious progress on inflation for now. i think that can not be ignored. >> this inflation is still going to be with us, but like so many of the trends we are seeing, nothing moves in straight lines. >> i think the economy is growing above trend. i don't think the fed has done enough. >> even short duration tips make sense to me because 3% on a 25. that is probably a mistake in this point in time. haidi: r bloomberg tv guests reacting to that out of the u.s. we have the co-portfolio manager at oaktree diversified income

fund joining us. always great to talk with you, danielle. we were talking about guggenheim's views, saying pain to come for the credit space. how would you be positioning in the view of that? >> thanks so much for having me on today. i think the credit market is providing some really attractive income opportunities for investors, given the dramatic rise in interest rates. that can also spell stress for some borrowers that have seen interest margins increase significantly. so it's important to pick your spots. once but we are very focused on is direct lending, private loans. part of that opportunity that continues to be created by the banks pulling back in their desire to lend. for alternative lenders to come in at this time, we are able to get better terms with better protections.

and generally we are seeing companies that have lower leverage levels because their equity sponsors have put in more capital. the opportunities on a go forward basis are looking rip e. haidi: so far in earnings, what have you made of the leverage aspect of the companies that have reported? >> for the leverage credit space, earnings have actually been ok so far. we are about halfway through the reporting cycle. what we've seen generally is a lot of companies have been preparing for a more challenging economic environment or recession. they've been doing things like cutting capital expenditures. placement the stocking inventories. in some cases cutting back on the average hours worked by their employees. this is all good but it is being offset by weaker demand that we are seeing from the consumer. 's are presently the best. generally the weaker industries have remained telecom,

chemicals, health care. it is hard to paint those sectors with a broad brush. there have been favorable surprises within those sectors. kathleen: what kind of interest rate -- central bank interest rate do you base all of this on? what are you assuming to set up your portfolios now? >> at oaktree, we are not micro forecasters. where focus on bottom-up fundamentals. the views come from speaking with companies and spotting supply-chain pressures which may indicate inflation will be more persistent and the fed will need to keep rates higher. we generally think higher for longer is here to stay. at least in the interim. the inflation front we got today was largely expected. what you sow with core inflation was a dissolution year-over-year, keeping with that lower price from last

month. we are focused on shelter as a component of core inflation that makes up over 40% so we think further declines will bring that down. overall inflation remains above the fed's target. i don't think their job is done. i think perhaps they pause. but keeping rates higher is probably needed to cool the economy off a little bit more and bring inflation and control. -- in control. something we've been focused on is the tug-of-war between the federal reserve and the federal government. the government has been stimulating. if you look at the last three years, fiscal spending has been unprecedented. there's been a number of legislation acts that have put more dollars into the economy and we are starting to see that play out with things like u.s. manufacturing on the rise. so this is harder for us to see the economy falling into a recession immediately. certainly not off the table for

next year but perhaps the economy is able to muddle through the next few quarters. that's not enough for the fed to need to cut rates drastically. kathleen: in terms of opportunities, you know the risk of widespread defaults this year remains low. fundamentals are fairly healthy. it seems to me that -- i don't know how it affects your investments, but commercial real estate, what's happening to credit, there's so many defaults, more people on the edge, how does that affect where you put your money or where you don't put your money? >> the corporate market compared to the real estate market, very different. there's a lot of dispersion in the real estate market. there are sectors that are challenged like office but there are some that have done well like industrial, multifamily, hospitality. we are looking at individual investment opportunities where regional banks have pulled back on their lending and again it provides attractive opportunity for us to step into some of

those situations. haidi: is talk about the need for diversification and active management at the moment. where would you be seeing some of those opportunities that perhaps even three months ago when we spoke to you you wouldn't have been looking at? >> i missed the first part of that with the microphone. do you mind repeating it? haidi: and wondering, given that now is time for more active management than ever and also some diversification, what are those aspects of diversified assets that would be appealing right now? >> i do think active overpass passive management makes a lot of sense, as credit stress is broken. -- is brewing. in particular being in a fund that can allocate across asset classes. we are seeing more compelling opportunities in floating versus fixed-rate debt because of the high yields. but income is a double-edged sword and we are very wary of private equity backed businesses

that borrowed heavily in the floating-rate loan market and didn't hedge their exposure. it is estimated two thirds of the $1.4 trillion loan market was unhedged at the end of 2021. and as those borrowers have seen rates increase, that could spell trouble for servicing that debt going forward so being able to pick individual companies in your portfolio versus investing and brought indices should allow you to experience a lower default rate than the broader market and with superior recoveries with debt and restructuring capabilities. kathleen: thank you, for putting so much of this in perspective while we are watching things like inflation what the fed -- nice to get a good pragmatic view. you can get around above the storage unit to know to get your day going in today's edition of "daybreak." terminal subscribers can go to dayb.

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haidi: take a look at how currencies are trading in the early part of the asian session. watching the aussie dollar. the slide fading when it comes to the australian economy. we are watching the regulator meeting with property firms and financiers expected today, as well as watching the rba hi, i'm lauren, i lost 67 pounds in 12 months on golo. golo and the release has been phenomenal in my life. it's all natural. it's not something that gives you the jitters. it makes you go through your days with energy,

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kathleen: let's take a look on

the stock market today. a start of the big rally when the cpi numbers came out looking at least as good as expected raising hopes that the open in stocks for the fed doing a pause in september. may be setting us up for a rate cut. mary daly, the president of the san francisco fed came out, after the s&p had been up more than a full percentage point, it closed flat. there's a little bit of green on your screen, the nasdaq also coming back a bit. you see the dow is up about 400 points -- was up about 400 points at one time but definitely pulled back. markets back to where they started, haidi. haidi: we are also watching oil markets at the moment as well. taking up -- taking a bit of a breather after the gains the past few weeks. we have seen technical barriers when it comes to trading further upwards in crude. we have seen wti settling a

little bit. a 3% gain over the past two days. that seven-week rally at the moment taking a bit of a pause going into the end of the week. the reserve bank of india has left its key interest rate unchanged for a third straight meeting as expected by all economists surveyed at bloomberg. setting aside more cash to mop up excess liquidity. it's maintained growth. projections for the fiscal year ending march 2024 but raised in some -- raised its inflation forecast. the governor said the significant progress has been made when it comes to inflation but floods and monsoon rains pushed up food prices. kathleen: joining us to discuss this and put it in perspective is the executive director for india.

-- the imf executive director for india. what's the message from the are b.i.? >> very good evening. it's a pleasure to be here. i think the reserve bank has signaled very clearly that inflation may be a temporary phenomenon. in india especially, about half of headline inflation comes from food inflation. which itself is driven more by supply-side factors than by demand-side factors, over which the bank does not have much control. the expectation is that because of some of the global factors, especially relating to the war in ukraine, the supply is a problem. what we do expect that some of the supply-side factors will be eased going forward. i think it is a very wise move. but at the same time also it

signals temporary inflation may be a little higher. i think what is important also to keep in mind is core inflation, which is what economists watch carefully, does not seem to be up. haidi: -- kathleen: what will the rv i have to see -- rbi have to see the shift towards a tighter stance? maybe raising rates again, or the opposite direction? does it seem like they are close to cutting. >> my sense is in the upcoming policy review of -- policy review a few weeks from now, they will continue the stands, unless global factors really go down south and in a drastic matter. i don't expect the stands to be changed. on the positive side, unless there is a significant impact on growth which i don't foresee either, they will not lower rates. you have to keep in mind that

unlike in advanced economies, in india, a large part of the demand is not dependent -- i'm talking about consumption demand -- is not as interest rate sensitive. in india, people borrow primarily to two wheelers, four wheelers, televisions. i do see most likely in the upcoming review, the bank will maintain the same policy rate. haidi: when it comes to food prices, is that upside risk given that we are seeing global self commodities seeing upside volatility in the most recent weeks? potentially weather is going to complicate that with the rise of tornadoes, you are seeing quite a bit of weakness when it comes to wheat and oil in india. >> uncertainty with respect

so the weather, maybe something to watch out. the recent monsoon has been very good. compared to expectation, in most areas now, the rainfall has been more than adequate. i think overall the weather seems to be holding up well. what i will also point out, on the positive side, the inflation in china -- deflation in china will be good news for nds central banks and banks across the world. that will cause lower prices and as a lot of the large economies depend on the imports, their prices will go down which will also provide comfort for a lot of the central banks on the inflation side. haidi: are you in the camp

of the dual deflation we see for consumers resorting and significant levels of exported deflation? >> i do think that the percentage of demand and many of the large economies including india is dependent on imports from china. and the fact that the deflation may be something that is more trivial. i would think a lot of that will get exported and therefore good news for many central banks. kathleen: how about the growth outlook? it seems people are surmising one of the reasons the governor is not in a hurry to raise rates again even with the food prices going up so much is that he and the rbi want to make sure that growth stays on track. >> that's a good question. i would like to point out here that as i was mentioning

earlier, a large part of the demand in india, especially consumption, is not impacted by the interest rate. as i said, only two wheelers, four wheelers, maybe some durables like a television or refrigerator. buying on that is dependent on interest rates -- buying of that is dependent on interest rates. a rising interest rate dampens investment. that is something the governor will remain concerned about. i think the expectation is that the inflation may not be a permanent one. this is driven primarily by supply-side factors. the monitoring policy cannot do much on the supply-side, for food. this current balance the

governor is choosing and the committee has chosen as weiss -- is wise. kathleen: the federal reserveare expected to be closer to the end of rate hikes than the beginning. how much does that enter into the equation for the rbi, particularly when you look at the currency, the bond market? >> i think, when you look at the indian inflation, a lot of it is not imported from global factors. as i was mentioning earlier, about half of headline inflation is driven by food, cereals, a lot of other food commodities are not imported. the component that does get imported is primarily pulses and oil. that is where some of the global factors are that is central bank will continue watching. when it comes to some of the

other aspects, in terms of the foreign exchange markets, etc, i don't see too much pressure in the foreseeable future. the rate hikes possibly from the fed will not have an impact on india. haidi: really appreciate your time and your views. you can watch us live and see past interviews at tv and dive into any of the features of the bloomberg functions. this is for bloomberg subscribers only. do check it out. it is at tv. this is bloomberg. ♪

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joining us now is dana peterson. when we listen to what mary daly said, it is hard to think the work they are going to do is not just going to the next meeting, but potentially doing one more rate hike to bring down inflation. is that what you hear from mary daly? >> and did i do, that the fed does more have more work to do. looking at today's inflation data, it is still well above 2% when you look at prices excluding energy. that means one more interest rate hike and may be more depending on how the data cooperates. kathleen: pull apart the data for is a little bit. people took a lot of. emphasis on the 0.2 monthly gains. that is how inflation used to look when it wasn't 9% coming down towards 4.5%. what are the key elements we should be focused on in understanding where inflation goes next? >> it's important to look at the

year on year growth rates of inflation. the biggest contributor to inflation is rents, showing up in housing with shelter costs. rents are probably going to start slowing over the course of the next few months. but also we have a lot of pricing pressure from services. especially services like restaurants, hotels, transportation services that are still placing upward pressure. we think part of that has to do with the fact that wages are still rising. they are still quite elevated. when we talk to ceo's of the biggest companies, they say they are going to continue to raise wages which does not bode well for inflation ahead. kathleen: what do you expect the fed to do next? >> this potential the fed may wait a few meetings to see how the lags start to play out. they are still going to have at least two more inflation prints

before the september meeting. that's also going to be very important. another cpi print and also the pce deflator, which is what they track monetary policy on. they could wait. but if the data do not cooperate and the labor market remains very robust, the fed may go ahead at the september meeting. haidi: i'm wondering how much you worry about exported defla tion, with china in deflationary territory but the fact that we are starting to see the opposite effect in terms of upside volatility for a lot of commodities right now. >> well, with respect to the u.s., the u.s. imports a ton of goods from china. if those goods cost less, that is great for lowering inflation in the u.s. certainly for china, there are big concerns. if you have a deflationary environment, which it looks like we are in right now, then

consumers start changing their behavior and start to wait because they think may be prices will go lower and they never actually spend. that leads to softer economic growth. haidi: our households holding up -- haidi: how are households holding up? we see the softer inflation passing through to consumer sentiment and household resilience at this point. >> well, when we look at our consumer confidence survey for the u.s., we absolutely do think consumers are seeing a break. certainly gasoline prices not rising as fast as they were. they are actually deflationary at this point, when we look at measures of inflation. food prices are not rising as quickly either. the big six, food and gasoline, means consumers are seeing some release in their income. real incomes are rising because inflation is not as high as it used to be.

we are definitely seeing that in consumer confidence measures in the latest reading and also consumers saying there is less of a likelihood of a recession ahead. kathleen: in terms of inflation, it is a rate of change in prices. even if inflation were 0 tomorrow, the price level is so much higher than it was before the fed let inflation get out of control before the pandemic. what does that mean for consumers and policymakers? >> well, the key thing is that in theory, prices are always rising. it's really how quickly. prices are not rising as rapidly as good news for the consumer. but certainly things do cost more. the question is whether consumers have the capacity to keep up with it. they will run out of runway in terms of the purchases. student loan payments may

restart as of october and excess savings will run out this fall and also many consumers are leveraging up on credit cards. those credit card bills are going to come due at a higher interest rate. we think those pressures are going to weigh on the consumer as we get on with the rest of this year and slow consumption. haidi: dana peterson, always great to have you, especially on u.s. inflation day. we are getting more inflation adjacent numbers this time out of new zealand. food prices interestingly seeing a fall of half a percent for the month on month reading for july. pulling back from the 1.6% gain we saw in june. we also had the business pmi coming through a little bit earlier, we, 46.3% from 47.5%, falling further into contractionary territory. it does fit into the narrative that we expect according to a number of economists that the

rbnz will keep rates unchanged. we expect potentially a bit more of a hawkish stance in terms of being vigilant in this inflation fight. the forecast, with 200 basis point of rate reductions between the second quarter of next year and the second quarter of 2026. we could see using on the horizon soon for new zealand. take a look at how markets are setting up going into the final friday session of the week. we are looking like a pretty mixed open as we continue to kind of decipher the implications of the tamer than expected u.s. inflation numbers. core cpi, small back to back increases in two years. mary daly, pitching in and saying the fed has more work to do in the inflation fight. we are seeing stocks here setting up and asia for a mixed open. we will be watching very closely

when it comes to how australian assets react. we do have the double testimony -- the farewell testimony for lloyd before parliament today. we will be watching one and -- w hat we got out of that meeting between regulators and property developers and financiers and china. watching the yuan and benchmarks and hong kong -- in hong kong. one-story we will be watching is alibaba. belle joins us now. this is the first signs of a comeback even as there is a sustained weakness in the chinese economy more broadly. annabelle: that's right. that's one of the most interesting takeaways from this set of earnings. religious how well alibaba has seen growth across its major divisions but typically the --

but particularly the china sales for the june quarter. you think about the headwinds alibaba was facing, we've still got a very sluggish domestic economy in china, we know chinese consumer sentiment is weak there. there are also other factors like that increase in competition we are seeing from the likes of pbb from china as well. the fact that alibaba managed to pose these numbers, we saw the biggest surprise to the upside or positive earnings surprise and more than three years for the company. citigroup among those saying that these are really the results that wall street had been waiting for. when you change on, take a look at the market reaction that came through to this. we saw alibaba up near 5% at the close in the wall street session. we will be watching how shares trade in hong kong today. something that lifted sentiment for the golden dragon index especially on a day that we saw stocks and traders pretty much range bound given that inflation print that came through from the

hang seng futures are still high, china weaker. other factors we have been discussing, particularly the weakness in the property sector. kathleen: what analysts saying about the six we split? annabelle: this is one of the interesting parts of the alibaba earnings call as well, six analysts put forward questions and not one of those questions was related to the plans for that six-way split. we are waiting for more details on the spinoff plans for the logistics division, the for delivery division, the cloud division as well. we didn't get more details really coming through from that. but how investors are interpreting that silence from the management team at alibaba, we do have some saying that actually management, market participants really might need to have more time to assess the plan to consider its market impact and it is nothing to be too concerned about at this stage. haidi: we will be watching also

the stock going into the start of trading in sydney. new crest coming out with gold output numbers as well, saying weakness when it comes a softer than expended numbers of full year gold output. 2 million to 2.3 million ounces. we will continue to watch as that stop gets -- stock gets underway today. we have seen upside with shares trading. net income, better than expectations, with a final dividend per share being announced as $.20 as well. revenue coming in at $4.51 billion. those numbers were better than expectations. much more ahead. this is bloomberg. ♪

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haidi: some of the stories we are watching around the world, and australian journalists has released her first public statement marking three years in detention. in an open letter, they were able to speak to her, she writes about how much she misses her children and the outdoors, having not seen a tree for three years. she is still awaiting sentencing after being tried last year behind closed doors.

ecuador will host a presidential debate on sunday despite the killing of a top candidate wednesday, fernando villavicencio. the council says the election will go on as planned with the boat set for august 20. the administration is preparing for visits from top presidential candidates from time one of the top weeks. the ruling party's presidential candidate will pass through new york this weekend, on his way to paraguay for the presidential inauguration. sources tell us that the trip will be low-key with meetings is that without tiny ways -- with the taiwanese community in the u.s. we will be discussing how taipei is managing relations with the u.s. and china and the future of taiwan's democracy. ♪

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