shery: you are watching "daybreak: asia" coming to you live from sydney and hong kong. haidi: asia stocks set to follow the u.s. higher. nvidia a chipmaker at the heart of the ai frenzy gives a bullish revenue outlook, and qantas ordering more long-range jets from boeing and airbus after coming back from a loss last year toward record profit. >> take a look at how u.s. futures are trading early in the session. we are seeing that push higher after the new york session. of course, we have tech leading the gains just before nvidia released results after hours and we are seeing also the push in the after recession.

we saw investors react to that 20-year option, but at the same time, we got economic data that was weaker than expected. american business activity barely expanding. we also saw a home purchase applications falling to an almost 30-year low. the two year yield sinking below 5%. all of this really pushing oil prices as well. we continue to see the downside below that $75 a barrel level as investors are also watching potentially a global rebounding supply from places like venezuela or iran as those relations with the u.s. now are thawing, but it is in the after hours session we are watching nvidia right now really pushing the market higher. at one point, really jumping more than 8%. another strong quarterly revenue forecast, so this really adding perhaps to the about 200% plus

gain we have already seen this year. haidi: let's get more details on nvidia's blowout results. just when we thought there was not any more spirit left in the ai rally, we get these numbers. does this kind of really solidify the narrative around ai? ed: yeah, not just a number for the fiscal third quarter but kind of even beyond that, the staying power beyond this ai demand, particularly from the hyper scale cloud providers. the narrative the executives gave was that they do have visibility going right into the next fiscal year that this spend will continue, and they leaned really heavily into this expression that there are two things happening in parallel, and investment into accelerating computing and a response that we all know about, generative ai, they need -- the need to invest

in computing to match that. i also talk about supply catching up with that as well. suppliers like tsmc stepping up and the expectation that supply for ai chips will continue for the next year. shery: do we have visibility about their business in china? we had an analyst point to the risk of uncertainty there. >> china is still critically important to nvidia. what we heard was that growth was principally driven here in the u.s. for data center but that china continued to grow within its historic bounds, which i think are 20% to 25% at that level. what they said was there's been lots of reports about increasing these technology export control positions. if that happens, nvidia does not

see near-term or immediate effects to their business, but they did acknowledge very early in the earnings call that if there is a long-term restriction for the united states, that will result in a loss of opportunity for both nvidia, but also, as they put it, for the u.s. chip sector that wants to be competitive in the cutting edge of this technology in what is an important market. haidi: what are some of the potential risk factors to the downside? this is such a pure play story. investors are clearly still head over heels. is it supply? have they downplayed the risk of supply flexibility as well? ed: a few analysts had the same question, which is, give us some size and scope. how do you know with confidence

that all of the hyper scalars will continue buying ai chips for the purposes of ai at this level. if you take aws, right, the market leader for cloud, it is developing all of its own silicon and house. -- in-house. they are highly energy-efficient, highly compute efficient, but that's the same pitch aws is making, so at some point is it's possible they become like frenemy's. a lot of these cloud providers are competitors. nvidia is confident they demand is there. there will always be a question of how infinite that is as others try to take their chips into their own hands, literally. shery: "bloomberg" coanchor ed ludlow with the latest.

some analysts are saying it might outweigh jackson hole this week for the general trajectory. so, fed chair jay powell expected to map out the campaign to tame inflation friday. bloomberg's michael mckee is in jackson hole and joins us now. what will you be watching out for? michael: i think we will have to wait until friday morning and see what jay powell says before we decide if nvidia has more impact than the fed chair. the fed chair might like the stock market and the company to take over because they don't seem to want to make a whole lot of news here, but they are not decided on what they want to do going forward. probably, they lean towards not raising rates in september, but it will all depend on the inflation data to come in, and there's a lot between now and september and their next meeting in november, so look for the fed chairman to kind of play it safe down the middle, saying we are

watching the data and committed to bringing inflation down, but this probably will not be like last year's eight-minute speech where he sort of whacked the markets upside the head and say pay attention, we are going to be raising rates and raising them a lot. haidi: what are going to be some of the biggest global themes? china obviously will be an elephant in the room in terms of the potential risk that poses across other economies. it is very interesting, you know, where we are at in terms of this endgame of central-bank cycles. michael: yes, it is going to be very interesting because while they have not released the whole schedule agenda for the conference or the whole list of participants, individual central banks have told us that christine lagarde will be speaking here, the ecb president. kazuo ueda from the bank of

japan and the governor of the bank of england, all of whom have similar but different problems within -- with inflation and interest rates. it will be interesting to see how much runs in parallel and how much of it is something unique to their own central banks. the conference itself is about structural change in the global economy, so there will be a lot of talk about it some of the things we are seeing, the energy switch away from russian natural gas, moves to try to limit the use of oil, if those will have an impact on the economies and monetary policy, what the markets are telling us, what the treasury yields rising the way they have -- a lot to talk about here this week. if we come to any conclusions or not we will leap to the markets to decide on monday. haidi: bloomberg's michael mckee at jackson hole, keenly watched for investors. annabelle: that bank of korea decision is due as well in the days or hours ahead.

what you were discussing with mike, how central banks will be reacting to what jay powell says, when you look at the be ok, what has been a big focus is that he'll gap between the fed and the policy rate in korea, and that is the widest on record and something that has been putting a lot of pressure on the local currency, the korean won. this chart here takes a look at what we are expecting out of that decision today. the line in red is the key rate at 3.5%. we have not seen any sort of hike there since january. inflation does seem to be coming down at least at this stage in korea, and then you look at the line here in white, and that is what swaps indicate what tells us that investors are positioning for a hike within the next six months of around 25 basis points. the line in blue as well, that is the three-year yield, and that has been edging higher. why we expect to see a hike, again it comes down to that witness in the korean won. that's also putting pressure on

policymakers and their ability to make decision, given that that witness is hurting its ability as an importer of energy and food. let's take a little bit of a broader look here across the session. when you see futures, and they mostly .2 gains, kiwi stocks nearly flat at this stage, the japanese yen as well just edging a little bit lower ahead of that pound presser on friday. certainly a big countdown to that as well as investor reaction. we have in investing nvidia results, something that will be more positive for the tech-heavy markets. shery: still ahead this hour, russia says wagner mercenary chief yevgeny prigozhin was aboard the jet that crashed, killing all 10 on board. we have more details coming up. plus, a more exclusive conversation with japan exchange group's ceo, who tells us why

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haidi: potentially some relief coming for lng providers. union saying that an agreement

has been reached, that the offshore alliance will meet thursday to consider a quite strong offer. of course, we had heard that no strike notice had been lodged so far after these ongoing negotiations between the energy group and workers at australia -- at one of australia's natural energy providing group spear that in-principal energy agreement on a number of issues has been -- has been reached in key according to a number of websites. they have not received any notices of protected industrial action. we did see european gas prices plunging as those talks aimed at heading abstracts continue to leave markets on edge. benchmarks fell as much as 18%, we are hearing that a strong offer was made and the offshore alliance will be considering

that offer on thursday. shery: take a look at how u.s. futures are trading at the moment. we are seeing broad upside after the s&p 500 saw its best day since june. of course, we are reacting, to come to economic data today with the assumption perhaps from investors that central banks will not be able to hike rates any further given the weakness that we are seeing, if it's in the u.s. mortgage side of things or even on other data like manufacturing and global factors relief under pressure for quite some time, but really, it has been the narrative around ai with really u.s. futures being led higher by nvidia's results. very strong quarterly revenue outlook that sent it higher by more than 8% at one point and even before the numbers were released in the after-hours session, we actually saw that push tech higher. we had only one sector down today, and that was energy because we are seeing investors expecting perhaps a global

rebound in supply. we continue to see the energy sector under pressure right now. let's bring in our next guest, chief investment strategist at advisors asset management. great to have you with us, but of course, all of this coming ahead of even jackson hole. usually every year this would be the big event of the week, but now with nvidia results, the ai narrative seems to have taken over. >> yeah, it is kind of a nice relief for a lot of investors. we have been stuck in the good news is bad news and bad news is good news and sometimes no news is welcome news, but when you get these kind of earnings for nvidia, it brings in a combination of coordinated forces in a sense, looking for optimism, looking for the affirmation of a soft landing, so when we look at their earnings, when you look at what that means, and it is not just potential they are realizing but also hope overhyped a little bit. even though it is still very

early, it does overshadow what is going on and with regard to jackson hole, we seem to go through a lot more rabbit holes early on in jackson hole, and then afterwards, we are left a little bit dull, doubting a little bit because they have been left a little confusing what they are saying about data. shery: data today coming in much weaker than expected. could we expect a dovish tilt from central banks, especially the fed? >> with that in mind, baby does not want to be painted in a corner. i think that's what you will see with the fed. i think there's too much conflicting data. this is very much like a harry potter environment, where the first book, you knew what the ultimate conflict was going to be. it just took seven books to get there. that is where we are, the difference between the bullish and bearish notes out there, and

the conflict coming in this macro reconciliation because you have a lot more negative data versus positive data, so i do think you will see them move a little to the dovish but they will heavily rely on data dependency moving forward. haidi: there's "dirty dancing." there's harry potter. so many references in the conversation. we saw that big, i guess, revival of trade with the nvidia name, but more broadly, do you think we will struggle for upside catalysts? >> i think we will get some reconciliation between the consumption, earnings margins because we had some good earnings for the quarter because that's -- but operating margins were under pressure. the difference between top-down and bottom line estimates are pretty wide. really, it will come down to earnings. if the market stabilizes in between will probably have to do with some of the inflation data,

and unfortunately, simply mathematically year-over-year comparisons means we will probably see elevated inflation in the second half of the year versus the hope that it keeps lowering. i think that will force pressure on the fed, and i think the rate hike -- i think you could see the markets have to project that there is another one behind it. it is always those last few that are the most consternation for the markets. haidi: most western countries have been fighting against inflationary pressure. it is the opposite for china. how concerned are you about the household consumer? are you looking at any stocks that have direct exposure to china right now? >> when you look at china, it has really turned. when you look at this inflation, deflation, it becomes more psychological than an economic function and it does not matter where you reside in the world. that is always part of it -- why

would you buy something now if it is going to get cheaper? if at a lot of your investments are in real estate and that is vulnerable, you got a little skittish. in 2008, 2000 nine, a lot of the exporting countries decided we need to get away from just rely on u.s. consumption. unfortunately, it look at the broad-based numbers, they have not really taken hold. like the year-over-year retail sales number that just came out last week, which was a miss, those are the things that we are watching really closely from a consumer side. unfortunately, it looks like the disinflation will not only takeover but deflation will be a big battle, and i think you will see some larger cuts and more stimulus coming down the road that risk turning the other way, then becoming inflationary, so it is this game of cat and mouse, so to speak, on the inflation and disinflationary environment for china. haidi: you say watch the cycle

of the 1960's and 1991 is something he could repeat. >> i think when globalization really started, it hit a really parabolic move back in the 1980's, two thousand's, 2010's. globalization was a great disinflationary component. you see a lot of risk assets. you see a lot of investment into peripheral architecture, maybe technology disruptions, if you will. that's ok because it was low rates of return. the patient zero in this whole thing is inflation. the inflationary spiral take 10 to 15 years to work out. right now from a demographic situation, from a resource, from a geopolitical situation, from globalization, even if it does not proceed, just tops out, they do not get that boost in inflationary pressures, that forces global rates to move higher.

you see short-circuits of expansions we have not seen in the last 30 years. we are use to 8, 9, 10-year expansions. the 1960 to 1991 period set expansions almost half of that. really higher interest rate short-circuits the expansion. it does not mean you don't have good deterrence. you just have to be -- you just have to have good tactical allocation, but the economic framework has to understand they make it better the way market and expectation and economic cycles move. >> great to chat with you. you can get a round the stories to get your day going. it is also on the mobile in the bloomberg anywhere app. so you just get the news on the industries and assets that

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haidi: qantas has surged to a record full-year profit and is launching a share buyback. paul allen joins us with more. paul: this is it. the last set of earnings we will hear from alan joyce before he rides off into the sunset in november to be replaced by cfo vanessa hudson, but what a way to go out. qantas is back after the pandemic. revenue has pretty much doubled. that's the first full year profit since the pandemic as

well. still no dividend, though. the last dividend we saw was december 2019 just before the outbreak of covid-19, but the buyback was extended another 500,000 aussie dollars. qantas biting planes as well, 24 wide bodies, 12 boeing 787's, 12 airbus a350's. >> is not one of the reasons why it is gaining the attention of politicians right now? >> yeah, qantas is in a weird position. they got some bailouts during the pandemic, but now may be doing a little too well. alan joyce being summoned to sit in front of the senate to explain why airfares are so high, among other questions as well. were the bonuses paid to alan

joyce and others at the expense of passengers? competitors are also accusing qantas of anticompetitive tactics. that might explain why politicians are so interested. flights being canceled. qantas accused of essentially holding lending slots. the ceo on his way to explain that. haidi: we will be watching that. more to come on "daybreak: asia." this is bloomberg. ♪

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shery: the bank of korea is

expected to hold its benchmark rate steady on thursday as it seeks a balance between reducing high inflation while promoting economic growth. for more, our economy and government editor joins us. we have a decision coming up very soon this morning, but there are other concerns for the korean economy. household debt really high, not to mention the financial risks that that poses at a time when the economy is slowing down. what does all of this mean? >> right, so, as you mentioned, economists polled by bloomberg expect no change to policy today from the bank of korea. that especially kind of makes sense given that the jackson hole meeting is coming up this weekend. it is essentially a risk event, so it kind of makes no sense for the bank of korea to take any risks or bring any surprise, but

as mentioned, there are various risks for the korean economy that they be ok and governor have to consider. it essentially makes more sense for the central bank to keep policy unchanged. >> what are you watching out for for the press conference? >> the risk of the credit market, the ongoing slump in exports that we have been seeing out of south korea especially given the china slowdown, what the governor says on those points, and also the inflation outlook for south korea. at the moment, it seems that inflation is slowing down. there could still be risk of inflation picking up again, so

that outlook, although we expect the be ok to main growth and -- maintain their growth and inflation outlook, what they governor says on those forecast, that is an area to watch out for. another thing is what he might say on the weakening you want -- the weakening won. most of the currency in the region has been driven by dollar strength, but what he says is something to watch out for. >> as we await that be ok decision, let's take a look at these markets. >> the be ok will be watching china's economy very closely. we know they are a major trading partner, of course. what will be key as the market moves we are seeing because a lot of investors are continuing to react to that malaise in the chinese economy.

it is really being shown up in foreign out close because this is now in a record selling streak, 13 straight days. when you look just here yesterday, that's around $10 million that was taken out of the market just in a single day alone, so it really points to the level of pessimism, and it's not really enough to attract investors back into the market given those economic indicators are still bad, and on top of that, the stimulus measures we have seen so far are not enough either. let's take a look at which stocks in particular have seen major outflows, and it is the blue chips that are really being highlighted. the selling we are seeing around $850 million out of that stock over the past week or so, so this is for the period from august 7 to 18, but these other ones as well, renewables, china merchants banks, and other ones, so i lot of different -- a lot

of different names. as i said, these are the ones on the blue-chip csi 300. shery: russia reporting that wagner group founder yevgeny prigozhin was aboard a jet flying from st. petersburg to moscow that crashed, killing everyone on board. the video comes from the russian media outlet. prigozhin led a mutiny against president vladimir putin in june. it immediately raised suspicions that progression had been deliberately killed. foreign policy expected to come up in a few hours. republican presidential contenders facing off in the first debate of the primary season minus front runner donald trump, who continues to lead his rivals by a double-digit margin. let's bring in jodi schneider. what is expected from this

debate, especially without former president trump on the stage? >> that is one of the salient facts of tonight's debate, that president trump will not be on the stage. however, he will be doing some country programming of his own. he has spoken to former fox host tucker carlson, and they will be showing that starting up not coincidentally 8:55 p.m., when the debate begins, five minutes later. we will see eight republican candidates on the stage. several of them were in former president trump's orbit. his former vice president, mike pence. nikki haley, who was his former united nations secretary. she is also a former governor of south carolina. we also see tim scott, who is the senator from south carolina, and he has high likability ratings. people are looking to see what

he can do on that stage tonight, but i are particularly on ron desantis, the florida governor who is coming in second after president trump, but of course, president trump is well ahead -- the former president is well ahead of everyone. despite the fact he has no moral indictment against him and is expected to appear in georgia tomorrow on one of those indictments, on charges of allegedly election interference in the 2020 election. haidi: we were just getting the latest when it comes to yevgeny prigozhin of wagner group. they will likely get that foreign policy question right off the bat, right? who do we think is best prepared for that? >> we do expect that question to come up and come up early in the debate. it would be surprising if it did not, given the news broke today about prigozhin, according to civil aviation authorities of

russia, having been on that jet that crashed in russia today. nikki haley, as the former united nations secretary, is expected to do pretty well on foreign policy questions. the only woman on the stage, it is hard to think it would be kind -- hard to think it would be -- it is thought it would be kind of hard to beat up on her. the current governor of south carolina, tim scott, is expected to do well on foreign policy given that he is in the senate. chris christie, former governor of new jersey and a big trump critic, one of the few really strong trump critic's, will be on stage tonight. it is expected to come out swinging. he may use that question to try to further his chances, and of course, the former vice president, mike pence, would be expected to try to burnish his

foreign policy reputation as well tonight. shery: bloomberg's political news director jodi schneider. you can also turn to the bloomberg for more on the republican party debate. of course, we are also watching upcoming elections in taiwan. foxconn's founder is keeping everybody guessing as to if he will run for taiwan president next year. the opposition said to be concerned his candidacy could split the vote and hand the election to the more independence-minded dpp. bloomberg spoke to him as he rallied support for his proposals in the taiwanese county closest to the mainland. >> on a boat trip to the tiny fortified taiwanese islands closest to mainland china, he made his pitch for peace across

the taiwan strait. >> we don't want a war. we don't want to be ukraine. >> for a man who is not officially candidate for taiwanese president, he sure is sounding and looking like a candidate. >> we think taiwan is so important for worldwide economics. taiwan and china can sign some kind of agreement or consensus. then we think both taiwan and china can decide not to fight each other, to get along. >> it is a message that mostly

resonates with the residents of the taiwan-controlled island that is a little more than six miles from china that has plenty of reminders of the war that was fought here some 65 years ago. >> of course, most people here do not want war because they have heard the sound of bombardment and have seen buildings being destroyed by artillery. we grew up visiting the war museums, and we know how horrible wars are. >> not everyone, though, agrees with the more conciliatory approach towards beijing. this pro-independence protester interrupted his speech, denouncing his peace foundation proposal as a cane to a contract to sell taiwan to mainland china. at another rally, he did warn beijing that any intimidation to try to force unification would backfire. as he says, the people of taiwan overwhelmingly want democracy, but that does not mean, he says,

taiwan cannot work with china. there's fewer than five months until the presidential election, and many are waiting to see if the likely independent will indeed throw his hat into the ring. >> we make a big announcement then we sit down to talk. >> thank you so much. >> you can watch us live and catch up on past interviews with our interactive tv function. you can also dive into any of the securities are bloomberg functions we talk about as well as send us messages during our shows. this is bloomberg. ♪

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congratulations on the inclusion. first of all, clearly, we are looking for any options to be able to remove atmospheric carbon. >> thank you very much for having me. it is the world's largest terrestrial carbon sector. it holds about double the total atmospheric carbon pull. it can create very large impact at a global scale. haidi: with your technology, how scalable is it? >> we developed a microbial coding with the crop that works to restore extra carbon in the soil. as the plant grows, so do these microbial fungi. they draw carbon down into protected forms such as physically protected forms at the center of micro aggregates in the soil but also carbon that

is bound to mineral surfaces. that means that they can remain within the soil for hundreds of years. the key thing for us when working with agriculture is making sure we don't end up putting extra effort for farmers at those crucial times of year. the technology we have developed does not require any behavior change on behalf of the farmers. they continue to plant their crop in the same way, but microbes work with the crop to store carbon in long-term stable forms in soil. haidi: we talked about benefits for farmers, companies wanting to pass on carbon credits and such. what about commercial clients? are you excited to see more interesting? obviously, there has been a lot of investor interest. >> absolutely. i think there's a growing awareness that the private sector has a crucial role to play in helping us address climate change. climate leaders like shopify work with us to help remove co2 from the atmosphere and we work with farmers to provide that supply to those companies.

it is a brilliant value proposition that allows farmers not only to increase their yield but also to increase productivity over the long term to improve soil health but then to diversify revenues into new markets such as carbon markets. >> does it come at a price that a typical farmer can afford? >> absolutely. our product itself gets about a five x return on investment just on the yield benefit alone. you then build in those longer-term productivity benefits and the opportunity to diversify revenue becomes a compelling economic proposition, and ultimately, that is key for us. everything needs to come down to the economics for businesses so they can play a crucial role in helping us remove gigatons of co2 from the atmosphere. shery: the yield benefit you talk about, how much of an increase are you seeing in yields so far?

>> up to about a 5.1 percent yield increase in a single season. alongside that, we increase carbon by about three to six tons per year. haidi: how does the technology help farmers deal with the impact of climate change? we are likely to be headed for the hottest year on record. all of this has disruption. does that also help? >> absolutely. it is a really great question. by increasing soil carbon, we are able to increase the resiliency, so increasing soil carbon helps to increase water infiltration. it means those more extreme seasons we are seeing, we can get more out of the land, and while doing that, we are helping to reduce those extremes by introducing -- by reducing the amount of co2 in the atmosphere. make sure that the way we are

storing it, it remains there for the long-term. we have those long-term stable protected forms of soil, but then providing the economic and if it businesses for providing that societal good, so it is a great opportunity for all of us -- for this industry to be able to not only improve its resilience but also to improve the resilience of the planet. haidi: you have had some heavy hitters when it comes to supporters. li keqiang among them. what do you need now to scale up ? is it government to get on board? >> we would obviously love everyone to raise ambitions when it comes to climate change. this is a massive problem and one that many people around the world are working to address. we are working very closely with farming businesses in australia. we have launched our second crop platform which helps farmers enter into these markets and provides them with economic support, buying their products and working to adjust their systems to be more sustainable.

later this year, we will launch in the u.s.. we currently work across australia, the u.s., canada, and we just started our first trials in don brazil -- down in brazil. it is about working with businesses to help them understand the opportunities in these markets, help them understand the economic opportunity and to be able to increase productivity through application of new technologies. haidi: really great to have you with us. we appreciate your time for helping us understand the technology in the commercial prospects behind it. much want to come on "daybreak asia." this is bloomberg. ♪

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to your flu shot, feel free! and speaking of free? our flu shots are... well... free. really? yes, really. healthier is getting a flu shot on your schedule. cvs. healthier happens together. shery: the japan exchange group ceo says the yen has become too weak and its benefits for equities are diminishing, but he also told us exclusively that he is not too worried about its impact as he sees other factors boosting stocks. >> the strong interest from both global investors as well as japanese investors prompted them to continue, but overall, i

think the market moves forward i think in a favorable way. some of the global investors are reallocating their investment from china to other places, and also, japanese inflationary pressure is coming, and this time, this is not the kind of cost-push style of inflation, but demand-proof style of inflation might be coming. i think then we will see a strong recovery of the japanese market and also corporate governance reform is going on. i think progress over corporate governance reform so far has been good, but still, there's room for improvement. >> what are the trends we are

seeing? are we seeing individual investors coming in? >> i think because of inflationary pressure, all of the individual investors are feeling from the market movement, i think they will see a more attractive investment vehicle, and i think we are already seeing some of the gradual shifting of the savings to investment. like jp x has a number of shareholders that more than doubled in the past one year from 65,000 to 130,000. we did not change our share buyback policy, but the number more than doubled. i think individual investors are quite aware of the inflationary pressure. they will think of where to put their money into.

shery: you can get more of our exclusive conversation on monday, august 28. here are some of the other news from companies that are reporting in asia. china construction bank said its profit rose 3.4% in the first half to almost $23 billion after it set aside less provisions for bad loans. earnings rose even as its net interest margin narrowed, and income from the asset management business fell 36%. the country's second largest lender says it plans to increase retail lending to support the consumer market. shares jumped over 10% in new york -- grab shares jumped after they posted a narrower loss in the second quarter. the singapore-based ride-hailing and food delivery company says it expects to breakeven in the third quarter rather than the fourth and sees a full-year loss of up to $40 million, well below the $235 million forecast in

may. the market opens in sydney, seoul, and tokyo are next. we will be watching tech companies and semiconductor-related stocks as we saw nvidia rally after hours on that very positive orderly revenue forecast. this is bloomberg. -- very positive quarterly revenue forecast. this is bloomberg. ♪

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shery: this is "daybreak asia", counting down to asia's major market opens after u.s. stocks and bonds rose on economic data. we will watch for comments out of central banks at jackson hole later in the week, but today it will be about tech after nvidia results. haidi: the question is, does nvidia lift the -- it's the worst month all year. does this really reinforce and lift that ai narrative for all tech, or is this about nvidia's position in the market. let's have a look at the open. annabelle: that's the big question there, the impact that nvidia will be having. but certainly we will monitor tech stocks across the session in asia. the open is upon us in japan, south korea and australia. let's dig into the nvidia results in more detail because it was a stunning quarterly revenue forecast coming out. sales tipped to be $16 billion

in the three in october, you compare that to where the average analyst was seeing it at $12.5 billion. huge gap period stock, unsurprisingly, we see it up more 6% in extended trade. the outlook really underscoring, nvidia's role is the key beneficiary as the ai computing boom. that is what has power tech stocks over the course of this year. taking a look at what we will see in the market session today, there's the other factor at play. he mentioned what we are expecting from jay powell at jackson hole on friday. essentially he will be mapping out where the fed goes in its final steps to tame inflation in the u.s. so that likely expecting him to reinforce his commitment to finishing that job even though we have that economic data that reinforce the central bank could soon pause and it's hot -- hiking cycle and will continue that pause. in terms of the market reaction today, we see the nikkei 225

coming online a little bit firmer, you also see the japanese yen likewise trading with those moves in treasury yields in a prior session narrowing that gap so we will be below the 145 level. let's change on and take a look at the session and. again today. yes, when you do have yields dropping for treasuries, it pushes the dollar lower, this is supported factors for equities in asia. you can add to that the heavy tech waiting that we see in korea of those stocks. we have because satire that what we see. still a day in the green. in korea today, the focus is also on the bank of korea, who's also going to be watching to be ok governor very closely, what jay powell says on friday. the expectation for today is we will see it keep its rate at 3.5%. we haven't seen changes since january. certainly that week is in the korean won is one factor they are watching closely as well. a bit firmer today, but we could

see it drift back towards at 1340 level after the decision today. let's change and take a look at what's happening in australia because here, yes, there is the focus on central banks but earnings continue to roll through the australian session. qantas is standing out this morning. we did have the airline announcing that it will be buying dozens more aircraft over the coming years from boeing and airbus, and what the ceo said, it was his last earnings before he hands the reins over. but travel demand in the country, in australia, is extremely robust, even though we are seeing cost-of-living pressures and other areas. the asx 200 just a little bit in the green, staggered start. no trading at for qantas and watching brent crude because that is a little bit under pressure. we do have that focus on supplies. traders reacting to tensions between the u.s. and key

sanction producers, venezuela and iran. haidi: let's bring in our next guest who remains bullish when it comes to japanese equities bringing in the chief investment advisor at bnp paribas are wealth management. always great to have you. japan is just one part of the story when we look at the potential lift that we get from nvidia across all tech and the ai related names. you think this is sustainable or is this rally going to be something that's much more unique to nvidia given the uniqueness in terms of the space that it still holds? >> i think for the better-than-expected results of nvidia, i think i just feel the optimism in the ai theme again. obviously there is also japanese stocks that are actually with the ai theme. in terms of the outlook for the

japanese equity market, obviously for this year, we have already seen a great role in the japanese stock market and a lot of positive moves already pricing in. we've been seeing some consolidation in recent weeks. but we are still up positive in terms of the next six months. we don't think the returns will repeat what we've been seeing in the first half this year. this very stellar return, but still, we do see a positive return for the japanese market. haidi: when it comes to the theme, you still maintain that portfolio, do you buy into corrections, do you diversifier focus on a couple of those player names? >> we still like the ai theme, i think it's a long-term theme, and whether -- whenever there is a corruption -- whenever there

is a operation that's good buying opportunities. rather than the stocks, we would prefer to play the ai theme from a more diversified approach. like a basket of stocks could be full of funds or etf's, etc.. we don't think the winners in the ai theme is only concentrated in the fuel stocks, because this is a longtime deal. we don't know what the ultimate winners will be. in terms of the more diversified proportion in terms of valuations, is more reasonable, and it's not only concentrated on the tech sector. for example, the health care sectors, it's also taking advantage of the new ai techniques. shery: in the u.s., the ai narrative has been so strong that it influences the broader trajectory of the markets, even on a week like this when we have jackson hole coming up. what's happening in asia? when you are thinking about what

central banks are doing in the ai narrative, which is stronger? grace: for now, after the result of nvidia focus on the tech sector are the ai theme, especially for last night we've seen in terms of the economic data it looks like good news for the market, bad news for the pmi in europe. good news for market because they are expecting no more rate in their future. i think this is also a tailwind for the tech stocks are the ai theme. in terms of the -- in terms of the jackson hole, i think there is some expectation that they are going to discuss whether it is going to be a higher, neutral weights, and that may move, that

the bonds market or move the yields, i think we will have to see because we are not sure whether they are going to discuss the higher neutral weights. in the near term, i think the central banks, on rate hike will still be data-dependent, and also taking into account the lack impacts of the monetary tightening. >> it seems markets are pricing in the fact that we will see more tightening from here, but at the same time, what does higher for longer mean, especially for asian markets when you have rate differentials this wide with the likes of china and japan, what is the net effect of that for assets? >> i think for now it looks like , for example, china growth is

slowing, and this could also have some impacts in terms of the global growth. also, if we continue to see weaker data from the u.s., and they could be happy about that because that means that is going to pass the rate hike. in this could be really a tailwind for marquette in asia. shery: good to have you with us, chief investment advisor for bnp paribas, wealth management. that see how we set up in the broader market with suppliers for nvidia. annabelle: just taking a look, this board showing nvidia's biggest suppliers in asia and we see quite a significant jump for them, the likes of sk hynix insole. why we are seeing this, we will discuss throughout the morning just as blockbuster numbers that came through for nvidia, another low out report tied to the

companies links towards ai, because it is the key chipmaking or supplier of chips for that sector. sales for the revenue forecast to be about $14 billion in the three month ending october. that's 3.5 billion dollars ahead of where analyst had been expecting. in the second quarter as well for the current fiscal reporting time. revenue going to 14.5 million dollars versus predictions for 11 billion. stronger corner for the second quarter fiscal quarter. strong forecast as a result we are seeing nvidia up in after hours trading and that's a reaction from its suppliers. let's change on because in the u.s. is where we had footlocker coming out with its report in the last time, we saw that stock there. you can see it is down 20% into the close, that is the last trade price for footlocker, but why that is so significant is because we had footlocker essentially cutting its annual outlook for a second time, it's

also posits dividend payment so analysts are saying that footlocker needs a deeper restructuring off the back of that we are seeing week is coming through in asian athletic wear makers the likes of fila and soul, mazzulla in tokyo, just some of the names we are watching. earnings in focus in australia because we had qantas coming out earlier this morning and essentially the airline says it will be buying dozens more, boeing and airbus jets over the coming years, this is to replace its aging fleet of airbus three 30's. but the ceo said this is his last reporting or set of reports before he hands over the reins later this year but essentially saying travel demand is extremely robust in australia. really a lot of australian seem to be prioritizing ahead of other aspects or finisher in this. certainly another one we are

watching here. qantas higher at the start of the day. >> we get more on the blowout earnings report on the back of strong ai demand. we will get the industry outlook later in the hour. plus, the chief who rebelled against president vladimir putin will support a private jet that crashed, killing all 10 people on board. or details coming up. this is bloomberg. ♪

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haidi: china's attempting to defuse risks from its $9 trillion of off-balance local government debt without resorting to major bailouts. let's ring out chinese economy senior editor. we know that these local government financing vehicles, it's not a new problem, there on the back burner along with the rest of the dealer campaign, so is it coming to a head, why are we talking about this? >> these local government financing vehicles have always been liquidity strength, and that's because they were set up to build infrastructure at that is used by the public or by businesses for cheap, and that's for public welfare, that's for growing local economies, but the companies themselves don't really get many rewards. and that was fine as long as the

local economy was growing on local governments are getting more tax revenues, and then they would be able to transfer those revenues in different ways so that they could service that debt. so the reason they are in focus now is because of the two-year property downturn in china. local government income has fallen and is making it much more difficult for them to support servicing their debt. >> you've been speaking to staff that work at these, what insights do we get? >> the biggest insight is setting the stage really for what's going to happen this year and that's because before the pandemic, beijing set a plan in motion to try to get these companies to diversify into new business areas and inject state assets into these companies so that they could generate more of their own cash flows to help them with their debt.

that has worked out in wealthier regions of china, but from our conversations with people inside , that has really not worked in poorer parts of china because they don't have the assets that a can generate could cash flow. so that really sets the stage for where beijing needs to step in, or banks need to restructure debt, or local governments need to cut spending on other areas so they can carry on servicing their debt. shery: the bond market hasn't exactly helped. his beijing running out of options at this point? >> i think that it's very interesting, we recently saw the pboc considering using its own balance sheet to try to support some of the weakest. that's an indication that we are going to see all of these different methods at play, but the bottom line is that beijing doesn't really want to do a central government bailout

because the politics it has with local governments. so they are probably going to see a mix of restructuring, which will limit banks ability to support the economy going forward and continue pressure on local governments to keep making bond payments to support them to do that, and that's going to mean they will have to cut spending in other areas, at least in poor regions. both of those of bank restructuring and local governments have pressure. that should be a drag on china's growth. so as long as a central government doesn't step in with a big bailout, which it doesn't apparently want to do. shery: we continue to talk about the problems that china is facing because now it's two point $9 trillion trusts industries emerging as a new threat to the world's second-largest economy. this sector is facing another round of losses that goldman sachs analysts say may swell to

$38 billion. let's ring in our asian finance reporter. we know this sector has been restructured several times already, so how meaningful is this industry for the broader chinese economy? >> >> these flow under the radar in recent years and has been the focus of much scrutiny. i think how they essentially work is they pull money from wealthy investors and corporations investing across a range of asset classes. real estate, private credit, fixed income, there exposure to the economy is certainly concerning. these trust funds have been able to attract money and investors because they are promising higher yields. for example, a recent trust product within a two-year merger -- maturity was at 6.6%.

that's compared to 1.5% if you put your money in the bank. basically, they have attention to rein in their size and activities and in recent years they have fallen from a peak back in 2017, but there is 21 trillion u.n.. put that in context of a fifth of china's gdp, that's what makes the troubles more concerning. haidi: how concerned should we be about credit exposure to the property sector? >> it's not exactly clear how much. i should take a step back. some troubles revolve around one particular trust company and it missing some of the investment product payments to clients. it's not exactly clear how much of these defaulted products are tied to the real estate sector. however, if you look at the data collected, over 70% of trust

product defaults and recent supporters have been tied to the real estate sector so the concern is certainly there. haidi: our asian finance reporter with a look at the phone or ability for the china economy and financial market. you could get around above that story and other stories to get your addition of blue just day break. it's available on the mobile and the bloomberg anywhere app. you can customize those settings are you get the news on the industry and assets that managed -- that matter to you. this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates, exemption certificates or filing returns. avalarahhh ahhh ahhh ahhh

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yen. let's get more with our asian equities reporter who joins us from tokyo. he spoke exclusively with him. tell us more about his concerns around the currency. >> you would imagine the weekend to usually be good for the japanese market, but he said that when the wind -- when the yen is as weak as 145 to 146, which is about the current level we are seeing for the past week, that's actually a little bit too weak, so he gave examples of how imported goods prices are rising for oil and gas and that's weighing on corporate earnings and domestic consumer demand. but at the same time, when you look at exporters that usually would benefit from the weak yen, since they are setting up manufacturing sites globally, it seems like the weak yen is no longer benefiting them as much as how we used to. we also hear market participants

a little concerned about the government's potential intervention at this level. so that might actually weigh on the japanese market. therefore, we are seeing a little bit range bound of the market. shery: not to do with the boj policy on that rate differential when it comes to the weakness of the yen. did you get any of his thoughts on monetary policy changes? >> he actually said that this is going to be a tough decision for the boj considering currency in rate hikes going -- going on globally, like you mentioned. but he did say that, in terms of the boj monetary policy change, that might eventually happen given that he in his own words things that deflation is probably worse than having inflation. and if the boj actually makes monetary policy changes, that's going to mean that japan is actually exiting deflation and

heading into stable inflation. which might actually be negative for the market in the short-term term, but in the long term it's going to be positive given japan strong economy. haidi: does he think the markets will stay strong for the rest of the year? >> it seems like japanese market is going to remain pretty strong for the rest of the year, given factors like the tsc reform, the macro environment in japan strong economy. but let's hear from him directly. >> geopolitical or mac or reasons that the economy is recovering, and the reallocating of the investment from china to other places. and also, japanese inflationary pressure is coming. shery: our asia credits reporter

own winnie hsu. you could get more were japan exchange group exclusive on daybreak asia. japan ahead on monday, august 28. we have been talking about the weakness of the japanese yen. take a look at how is trading at the 144 level. we see more upside. we have been seeing upside this week after it actually fell to that 46 level against the u.s. dollar earlier this week. we also see upside on the korean won and it's surprising because we are close to that 1340 level, which analysts have pointed at potentially a level where the government could intervene and all of this coming ahead of the be ok rate decision later today. haidi: nvidia, qantas, aia, we are watching china construction bank saying the profit rose to almost $23 billion. set aside this provision for bad loans. earnings rose as net interest

income margin narrowed in income from the sf management business slid 36%. the country's second largest lender plans to increase retail lending to support the consumer markets. the group has posted a record profit on the back of its infrastructure and renewable energy businesses. earnings rose 42%, boosting the cash balance more than 4%. coming up, nvidia shares soaring with extended trading and insatiable ai demand fueling a blowout earnings forecast. we get more analysis next with idc. this is bloomberg. ♪

annabelle: this is daybreak asia. a check on markets we are 30

minutes into the session for sydney, solon tokyo. when you take a look at the function with how we are going at the start of the day, you can see now sectors are in the green. there is a clear one leading the gains today, that the i.t. stock. you can see the benchmark for the sector is up more than 1% as we get underway. no surprises for what's driving it. let's take at the nvidia suppliers and asia in particular because this was a third straight set of earnings. projects since -- projections for this expect the coming at 16 billion dollars. this $3.5 billion more than what analysts had been predicting. a huge gap there. nvidia is soaring in after hours trading nec the likes of sk hynix jumping in soul allows are our others in japan. let's change on and take a look because it's not just the nvidia

affect, it's also it came through in the wall street session. specifically we had moves treasury yields that reflected in the session today, just that retreat. the weaker economic data telling us the fed has risen to extend the pause in terms of what we take a look at, let's change your settings and remove the closed markets where you could see now sectors are benefiting from the dollar weakness that came through and supported the well for equities. finally taking a look at what we see in terms of trading volumes because this is notable. we are still well off the 20 day moving average. 20% lower for the move. typically at this point of the session. still, investors are nervous ahead of powell's speech on friday. but, nvidia really center stage for now. shery: a bad outlook underscoring the company's role as the key beneficiary of the ai computing.

great to have you with us. we were a bit concerned going into the results that expectations were so high that nvidia may not be able to meet them. is the after hour training session in the stock reaction justified? >> when you look at nvidia, they have a dominant position in terms of ai acceleration. we started seeing a turnaround in the business specifically the core market segment. you completely surprise the market now. as it slowly recovers from the market correction we've seen over the past year. shery: we saw a reaction and suppliers for huge gains of samsung as well. how much of this positive sentiment on nvidia will trickle

to these companies actually do business with nvidia long-term? >> i think you will see a spillover effect. if you look at the founder supply chain, both tmc and samsung support nvidia's business. there is continuing growth they see in the dataset. advanced packaging companies and others that are building these next-generation packages that are foundational to what we see in compute and ai, i think those companies will benefit with materials companies. everyone that's involved with the unique supply chain. haidi: it's interesting because we are expecting this to lift a lot of the other ai names, especially the nasdaq has been struggling for traction. this is one of the few growth stories left. as you say, with unique production and distribution

aspect, is it really help everyone else is depending on this ai narrative? >> i think it's going to help them over the coming year, but you are definitely seeing an inflection point where ai, in terms of training will maintain itself within the data center. there's a very large opportunity over the coming years to begin to incorporate ai. think about pcs all incorporating some form of inferencing of ai. i think the inflection points for that may come in 2025 and 20 26. companies like andy and intel will be watching products later this year to address that. right now, i think the real opportunity is on the other side of things and it's beginning to implement instances and workloads that take advantage of ai acceleration. of course the large linguist models -- language models being created are doubling over the next three to four months, that

will continue to drive more momentum for ai. haidi: you mentioned a couple of the partners of the partnership for nvidia. is there a downside risk to that ? it kinda shrugged off the supply chain risk, but does that remain? >> i think the tide to only one specific player that is dominant in ai acceleration is always a risk. if you look at the founding companies, is still close to the bottom of where the utilization rates are at now. anywhere between six to 5% to 75%. that's the normal kind of environment. we expect to see the total market to gradually recover. there are the last couple of months we've seen some quarter over quarter growth, but we won't expect to see year-over-year growth until the end of the year. so, i think we are at the bottom in terms of the correction that we see, but the demand side of

things will be interesting. there will be unique areas like the datacenter investing in ai. automotive is another area we continue to see investment. if you look at the pc space and smartphone area, we are waiting to see markets recover, which likely won't happen until 2024. those market still account for close to 50% of the total semiconductor demand. shery: is the exposure to china a risk not only for nvidia but other companies? we see the slump in the economy but also geopolitical tensions. >> i think that that's really the wild card. if you look at the companies having guiding over the last couple of quarters, they are resizing their business and where they think demand is going to be, but china has really shown any signs of recovery. the chinese consumer, after the shutdown and when china opened

up, they are moving away from buying gadgets and electronic devices and travel, leisure and gambling and other things that go to the electronics and i.t. space. i think that it will take some time for china to recover. we probably won't see that until we get to the middle of next year. china still accounts for almost one third of the semiconductor market demand. a lot of the regulation we see coming from the u.s. in any type of retaliation from china will bring a wildcard in just more challenges for the industry as a whole. i do believe that this industry is going to end up -- and i think that there's a growing amount of content growth we expect to see over the next five to 10 years. >> great to have you with us. foxconn founder is keeping everyone guessing as to whether or not he will be running for taiwan president next year.

the opposition is said to be concerned that his candidacy could split the vote in high the election to the more independence minded -- he spoke as he rallied in support for his proposals in the taiwanese county closest to the mainland. stephen: on a boat trip to the islands closest to mainland china, he made his pitch for peace across the taiwan strait. for a man who not officially a candidate for taiwan president, the billionaire founder of foxconn, apple's biggest supplier, sure is sounding and looking like a candidate. >> we think taiwan is -- so

important for worldwide economics. taiwan and china have an agreement for consensus. and then we will see. both taiwan and china lots of play war. stephen: it's a message that resonates with the 120,000 residents. the taiwan controlled island that's a little more than six miles from china that has plenty of reminders of the war that was vote here some 65 years ago. >> of course most people don't want more because they have heard the sound of compartment and have seen buildings being destroyed. we growth visiting the war museums, and we know how horrible wars are. stephen: not everyone agrees with the conciliatory approach

towards beijing. this pro-independence protester and interrupted the speech, announcing his peace foundation proposal is akin to a contract to sell taiwan to mainland china. he and another rally did warn beijing that any intimidation to try to force unification would backfire as he says the people of taiwan overwhelmingly want democracy. but that doesn't mean taiwan can't work with china. there's fewer than five months until the presidential election and many are waiting to see whether the likely independent will indeed throw his hat into the rain. >> we will make an announcement and then we will sit down to talk. stephen: stephen engle, bloomberg news, taiwan. shery: past interviews on our

interactive tv function tv . you can also dive into any of the securities are bloomberg functions that we talk about. plus, become part of the conversation i sending us instant messages during the shows. this is for bloomberg subscribers only, check it out at tv . this is bloomberg. ♪ the first time you made a sale onlin godaddy was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com 76% of 23andme health customers surveyed reported taking healthier actions. with a partner that always puts you first. 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. ( ♪♪ ) woah. ( ♪♪ )

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shery: russia and aviation authorities say that the mercenary group founder was aboard the private jet that crashed northwest of moscow killing everyone on board. wanting, the video we are about to show you is graphic. it comes from the russian media outlet. let's get more from bloomberg's bruce r einhorn. what do we know? bruce: we know that the aviation authority says that all people on board the plane died, there were 10 people on board. further details we don't yet have. of course critics of the kremlin have long accused vladimir putin of killing his opponents, something that the russian government has denied. president biden did say, just in july, when talking about what

might happen to him, said that if i was here, i would be careful what i a. the crash comes on the two month anniversary of the rebellion for at least a moment seemed like it was threatening vladimir putin's hold on power. haidi: president putin did rely heavily on it and its ukraine offensive, so does a change things when it comes to the broader group at all or that relationship? bruce: it does indicate that people who thought that vladimir putin was weakened by this rebellion may have to reassess because the fact that after the

recession he was able to continue to travel around in russia. people pointed to them as a sign of weakness on the part of putin. now with the death of him, does seem to be an indication from pollutant a message that he is sending to others in russia that he is still very much in charge. haidi: bloomberg's bruce einhorn there with the latest. leaders have edged closer to adding -- for the first time since 2010 agreeing on terms for an enlargement that will hurt and hope will raise influence on the world stage. jennifer reports from the summit in johannesburg. jennifer: an extension of the bricks prophecy backing by more leaders on the second official day of the summit here in johannesburg, members have pushed driven primarily by china, but india's prime minister advocated publicly for the first time of the summit for

a cautious approach to the expansion of membership. >> excellencies, india fully supports the expansion of bricks membership, and we welcome moving forward on this based on consensus. jennifer: several countries are shown an interest, including the united arab emirates, saudi arabia and argentina. the more detailed announcement is expected to be made by leaders before the conclusion of the summit on thursday. in johannesburg, i'm jennifer, bloomberg news. shery: the prime minister floating the idea of the bricks space group as india has become the first country to land a spacecraft near the moon south pole, them in three landed on wednesday days after russia's attempt in the same area failed, it was carrying a rover that was

analyzing the surface and search for water. the prime minister trying to ensures prestige after a failed moon mission three years ago. look at how currencies are trading at the moment, we have the u.s. dollar now under pressure in the new york session as treasury yields went down across the board, we are seeing a little bit of strength for the japanese yen, but investors are still waiting for fed chair powell speech at jackson hole later in the week. and a lot of strength for the korean won. take a look at that, 1320 six, gaining almost a percent in u.s. dollars. we have seen a lot of weakness in the korean won. so much so that the 1340 level has become a level that analysts are waiting for on speculation that authorities could be intervening to curb their currencies recent losses against the greenback. all of this ahead of the bank of korea rate decision later this morning as well as bloomberg

economics now expecting the be ok to keep its base rate at 3.5 percent, expect -- extending the hold. for more, our bloomberg korea economist joins us now from seoul. we know that there are so many risks for south korea, including very high levels of household debt, but also an economy that slowing down. how is the be ok going to try to balances? work so, there be ok wants to keep inflation and establish risk related to high household with the restrictive monetary policy and there are also concerns about the downward pressure for the policy rate differential with the u.s. being the widest. be ok's policy rate has trended lower than the fund rate target,

but there are also factors that kit a hike option off the table today. so, of course, as you mentioned, the hour is getting darker. obviously recovery were china, and as china is the major trade partner of korea, and as you mentioned, the rising delinquency in the nonthinking financial sector, highly exposed to property development project financing, so that the bank of korea will hold their policy rate at 3.5% today, but they will keep the door open for another rate hike so that they will balance the policy rate unchanged, but maintaining a hawkish stance.

>> the korean economy is very externally expose, what about the correlation to china slowdown? do you think that will have an effect? >> it is true that the korean economy is highly exposed to china as china is the major trade partner of korea, so the weaker growth, weaker recovery of china will transfer to weaker recovery and they weaker growth in korea. it is also true that the korean economy has been de-risking from china since 2018 when it occurred. so the data showed that china sharing korean experts has been decreasing quite significantly. so, this implies that the shock and china will have -- shery: let me interrupt you for

a second because we are getting the bank of korea right now coming in, leaving the key interest rate unchanged at 3.5 percent, as expected, extending that hold. we haven't seen a change since january, the be ok as we have been talking about, has been concerned about financial risks, financial stability, high household debt and a resurgence in inflation later this year. at the same time, the economic risks continue for south korea, we are talking about their weaker growth outlook with china's economy slowing down as well, we are getting a forecast for inflation right now, maintaining the 2020 three gdp growth forecast at 1.4%, so it seems economic growth for this year is expected to remain the same, but the ok forecast 2020 cpi inflation of 3.5%, so, that's also the same as the estimate that they released back in may.

when it comes to the cpi forecast for the following year, 2024, again, 2.4 percent, which is actually in line with what they forecasted back in may. now, the 2024 gdp growth forecast has been downgraded to 2.2% versus 2.3% projection in may, in the korean won, now you can see the reaction holding onto gains as the be ok leaves policy unchanged. what do you make of this? we were expecting the great tuesday unchanged at that three by 5%, but the fact that gdp growth forecast was slightly downgraded for 2024, that's more of a concern about the economic momentum for the country. >> i think the revision to the 2024 gdp forecast will be

reflecting the stolen recovery in china because china is a losing growth will -- gross momentum, which will have an impact to south korean and the korean economy. as i told you before that, as that spillover from china is also getting smaller than before , so we can see that the outlook changed at 0.1% point. shery: thank you so much for sticking around. we have the be ok rate decision. we have more ahead. this is bloomberg. ♪

haidi: we are watching korean assets as the be ok is holding that key rate steady amid concerns over growth. seeing sustained gains being held when it comes to the south korean won. jump by the most in six weeks after that weaker than expected pmi data. we are seeing that hold from the be ok for a fifth consecutive meeting. inflation without adding pressure for an economy that faces headwinds. this is bloomberg. ♪

david: this is my kitchen table and also my filing system.