>> welcome to daybreak australia. annabelle: i'm in hong kong. we are counting down to asia's major market opens. sherry: good evening, top stories this hour. u.s. stocks closed near session lows as bond yields rise with two fed officials saying the peak may be close ahead of jay powell's jackson hole speech. haidi: donald trump said he will surrender in atlantis soon on charges of conspiring to overturn the 2020 presidential election. sherry: a strike threat eases as one of the australian lng export facilities but workers of chevron operations continue talk spirit take a look at how u.s. futures are coming online in the asian session. not a lot of movement but perhaps a bit more downside when it comes to those tech futures. we saw u.s. stocks falling in the new york session, really

almost wiping out its weekly advance. nasa 100 losses, top 2% mega caps really came under pressure. we are talking about tesla, apple dropping more than 2.5%. perhaps a little bit of that with the feeling when it comes to nvidia after touching an all-time high on earnings optimism. we had data showing that u.s. jobless claims dropped to the lowest level in three weeks, falling for a second week, so we really had more signs of a healthy labor market. we had the treasury selloff resuming yields rising across, you can see the 10 year yield surpassing out for 20 level. two year yield climbing back above that 5% level, all of this ahead of jackson hole. oil at the moment under pressure and below that $79 a barrel level, it did post a small gain in the new york session, but really, there has been a lot of fluctuations when it comes to the oil market and then summer trading. haidi: as you mentioned at the

top, we are watching mostly billing from the fed, to official signal sink -- signaling lsd makers done with rate increases, and of course we are cutting down getting closer to jay powell's comments at jackson hole, which traders are hoping will give more clarity when it comes to policy positioning. bloomberg's economic editor is therefore honest, and i guess going into that key speech, the commentary around this just adding a bit more context into what we might see. >> there are a lot of central bankers here who are thinking along the same lines, put it that way, and the line is that the traders might be disappointed, they don't really know what they are going to do next, they lean in the direction of the fed, at least leaning in the fed of a pause. the ecb may be leaning in the direction of a pause, but with a lot of data, including some important inflation reports ahead, the idea is, keep people

focused on the idea that the fed and the ecb on the other central banks are going to do what's necessary as opposed to setting out a specific plan for whether they will raise rates or not in the near future. so i don't think we are going to get a lot of guidance on that score. i was talking to a couple who said, here's the problem, we are in this gray zone where it could go either way. it was easy when you're go to say we are going to raise rates because inflation was i. but inflation has come down now. we don't know whether or not it will go back up, so we have to be cautious going forward. shery: given the disagreement we are seeing over the r-star neutral rate, it doesn't need to contraction or stimulating of the economy, people are saying that perhaps jay powell will lean towards not doing much and waiting and seeing. what's the feeling on the ground right now? >> i don't think jay powell will talk about this.

the problem is, you don't know what it is. some people estimate you're talking about the neutral rate of interest that neither stimulates or holds the economy back. they don't know what level that's at during the years before the pandemic it was maybe 1% because we had very low interest rates, very low inflation. now it's obviously higher. the fed has made the judgment that it is now restricted, which would put the fed funds rate above ours start, but what is our start. i don't think they are going to focus on that. it may be of interest to people on wall street trading desks or global wall street economists. the fed doesn't really think of it as a policymaking tool in the same way that other people do. jay powell gave a speech here his first year in 2018 in which he said he didn't really like it because he didn't know what it was at any particular time. shery: bloomberg's mike mckee joining us from jackson hole. let's turn to the top stories

and bring in our cross asset reporter. of course we are very much focused on what's going to happen at jackson hole, a lot of fed speak that we've already heard, not to mention what's happening on the ai narrative with nvidia. really a lot for markets to digest. >> it was a lot. the nvidia story, we talked earlier about how the bar was set really high for those earnings, they did really meet the mark here. the earnings were objectively good. the third straight revenue forecast beating expectations. this at four october, $16 billion expected. analysts had estimated just 12.5 billion in sales. it was a big eat, not too surprising to see the analysts and investors really selling the news. perhaps maybe taking some profits in nvidia and waiting and seeing how hawkish powell is and whether we get another spike in treasury yields tomorrow. that maybe would not load well

for those technology stocks. we are still in positive territory for the nasdaq 100 on the week. so we would have to see what happens tomorrow. we know that historically traders have really been watching that speech for clues about the direction of the economy. haidi: you've also been speaking with a head fund -- hedge fund strategist who is betting on disinflation that we might be getting ahead of ourselves. >> that's right, i spoke to capital management's jordan brooks, the head of macro strategies and he is in the higher for longer camp. he certainly not the only one, but he was talking to be about how when you look at stock market valuations, the market is really pricing the most optimistic, he called it, goldilocks scenario where inflation kind of just comes down, the fed starts to pull back, its interest rate, and then we see the economy trudged along and not dip into a

recession. he said that while that's possible, we are really here looking at stocks that are only pricing in that. he pointed into the fact that the labor market is still really tight and core inflation is still well above the fed's 2% target there, so he saying there risks are skewed for the policy rates to be higher than normal. certainly we have seen more traders seeming to come to that conclusion just in the last week with treasury yields moving up higher. shery: bloomberg's emily here with the latest on our top market stories. let's see how all this sets us up for the market open across asia. annabelle: we are just counting down, and of course tracking what you were just discussing with emily. those moves in yields. you saw that reflected in the kiwi two-year yelled at the start of trade. much more muted than what we've seen over the past few sessions. in terms of what we are seeing for the direction of stocks, it is really the major benchmark tilted here for the downside.

kiwi is already online as well. what's going to be interesting in the session today, because you can put this countdown to jackson hole on one hand, and clearly that's what traders are going to be watching across the course of the week because trading volume has been really low ahead of the meeting. on the other hand you have what's going on in china. we had a big bounce in the tech stocks in china in particular yesterday in the session. we still see futures a little bit under pressure. we did also just have two surveys coming out. i want to highlight the results of one of them because this was from bank of america and they pulled some people in mainland china, what they found is that consumer confidence is starting to just pick up slightly. these are the latest ratings, explaining it in more details. the line and white is the proportion of people planning to spend more over the coming six months. you can see that moving higher from the last reading back in june. this is down by monthly -- this is done by monthly. the line and oranges planning to trade up to more expensive

brands. so you can see that improvement there coming through, which, some say when you took a look at the cpi data that came along, the core reading was still actually moving higher as well. again, that is perhaps a signal some analysts and economist are saying, including hang seng bank, that resilient consumer is still there and we saw stronger numbers on tourism and services activities over the summer. haidi: annabelle with a look at china and of course we are looking ahead in terms of what to expect out of jackson hole for that key policy announcement and speech from jay powell. we will also be hearing from the former kansas city fed president who joins us in just a moment. later this hour we will speak with the buddhist bank president. ndme health customers surveyed

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>> re-acceleration could upward pressure on inflation, stem the disinflation that we seeing, and instead delay plans for the fed to change policy. shery: former st. louis fed president james bullet. joining us as former kansas city fed president, now a distinguished fellow at the center. thank you so much for your time joining us from jackson hole. pitiful background there. what can you tell us about where your expectations are for this session, especially when it comes to chair powell speech. >> well, what i would expect him to be -- to do is we are firm the fomc's commitment to the 2% inflation target, and with that

reaffirmed, i think you will talk about leaving rates where they are, but he will watch the data, especially the september cpi numbers, that would have a big impact later on what they would do in that month. i think they are going to be focused on making sure inflation gets down to 2%, not 3%, as some people would like. i think he would wish that. shery: for our viewers across asia, how concerned are fed policymakers at this point about the china economic slowdown and whether that could have an impact on where policymaking goes from here? >> i think people in the u.s. are aware of what's going on in china, and they are paying attention to it. and they know that we still have -- the u.s. still has a pretty strong economic relationship through them. however, now that we've said that, we will still focus on the u.s. situation, which is to bring inflation numbers down and

to focus on that and not get too tied up in the dollar issues and so forth that might be more important relative to the china relationship going forward. haidi: we have been talking about the fact that this point in the policy cycle is getting trickier. things are not quite so clear cut, and you can kind of have arguments for any of the options to hold, to be more aggressive, to lean back a bit more, are the risks building a policy mistake particularly at a time when there were growth uncertainties in downside in other major economies? >> of course, when you get to this point, they are at risk of going too far is greater and not going far enough is greater. i will give you an example, one risk is to repeat the 70's and we see this slow down inflation. we back off inflation rates. the other risk is we push

forward as they did in 2006, further than what might've been necessary, and then you precipitate a sharper downturn. so they are aware of these risks, that's why think they are watching very carefully for the data going forward, keeping in mind that they need to get to the 2% inflation target, so they are going to take that as a priority and it's the risk against that 2% target. right now, inflation is well above 3% on the court, just above 3%, so they have a ways to go. i think their margin of error is to be concerned about inflation not going down to the 2% target, and that's what they will think about going forward. i don't know that for a fact, but that's how i would think about it. haidi: is there a margin of error when it comes to this much spoken about neutral rate? that's what bond markets are focused on. chair powell estimated he doesn't really know with that level is. is this the right thing to be

focusing on? >> i think so. no one knows what the neutral rate is, but they don't know what the actual neutral unemployment rate is or anything else for that matter, so they are working through that. we know that the neutral rate now is higher. everyone seems to be aware of that and that we need to keep that in mind as the federal reserve calibrates its policy of enforcement. we know that they are above the neutral rate because the economy is slowing, but how much so, they don't know, say they are going to carefully go forward and as i said, watch the data, and make some judgments through the month of september before they get to that final september meeting. shery: what just watching the data in that dependency mean for the treasury space where we have seen so much volatility as of late? >> the treasury will remain volatile, for the fed, they are looking to see where the

inflation numbers come out in the september 13 announcements, and how the markets would react to that, how much further they have to go, or do they move away from their target of 2%, that's what they're going to want. in the meantime, because of that in the uncertainty, uncertainty means greater volatility usually, and that's why think we will see some continued greater volatility in the bond market. what is going to happen to the yield curve, question mark. how do i make decisions i can change my mind day today what's going on and given the uncertainty in the market that we see right now. haidi: how much are you looking at, the stickiness when it comes to medium-term, long-term for inflation. we have seen unexpected volatility when it comes to commodities pricing on what the energy markets are doing. we know that climate and instability in other ways have yet to play out potentially looking like the hottest year on record.

so, how much does that complicate things for policymakers? >> they think the intermediate behavior, the intermediate time for the great is even a bigger question because the economy seems stronger than what people thought it would be. but i remind people, in many ways, if you look at history, we are still early in this tightening cycle. i know it's year-and-a-half, but the increasing rate before the great financial prices from 2040 2006, and then they left about five and a quarter for a year. so, we are early in the process, that's why i think the fed will leave rates where they are for now, and they are going to keep them there at least through the good part of next year. watching very carefully, month-to-month how those inflation numbers go forward. and if we see a spike in inflation because of the stronger economy that people expect, and because of the fiscal policies that have been

very expansionary in the united states over the last few years, that's going to play out in how they determined their next policy choice later -- through the later part of the year and the next year. so, uncertainty, waiting for the data, trying to make decisions in that environment is going to be tougher the fed and tougher the markets. shery: let me wrap up the conversation as we started in focus a little on the international markets and economies. we have seen some developing economy starting to cut rates given that the economies have started to slow down. when we see this divergence in global central policymaking, are there any implications that we are not really thinking of right now? thomas: i think, looking at emerging markets, they are slowing, they are reacting, they have new leadership, but they will play that. i don't think that will pause the -- because the u.s. to change its policy forward. and that will affect them.

because we will stay higher than they might expect, but it's higher than the emerging markets might expect them that's going to affect global events going forward from here. the u.s. will lead that given its policy position and its circumstances right now with this economy stronger than people expected, but still seeing inflation come down, starting to talk about soft landings i think is too early in the game for that kind of talk, to be honest. both here and globally. haidi: great to chat with you, former kansas city fed president and distinguished senior fellow speaking to us from the jackson hole symposium. still ahead, we will be joined by the president to discuss the european economy. later we will speak with the later -- with the boe board member, as well as the head of

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shery: about our, former u.s. president donald trump is expected to turn himself into authorities in atlanta to be booked on criminal charges over an alleged conspiracy to overturn -- overturn his 2020 election defeat. you are taking a look at live pictures where we expect him to land. let's bring in bloomberg's washington correspondent. joe, this is another milestone. i mean, he hasn't had to report to a detention facility for processing until now. what can we expect? joe: this is going to be a bit different than what we've seen in the past couple of an a -- couple of arraignments, which is amazing for me to say out loud about a former president, but

this is a state case in a state trial that he is headed to. that means a couple of different things, including cameras in the courtroom once this trial begins, and of course the proceedings that lead up to it. but also a mugshot. we are expecting to see a mug shot of donald trump as we did see from his codefendants, including rudy giuliani, and mark meadows, the former chief of staff with mugshots in a very different look for this former president. although the donald trump camp seems to be making the most of this. he chose the timing of this arrival in an effort to plant any bounce that candidates from last nights republican debate might enjoy and to coincide with primetime newscasts in the u.s. a bit later on today. it's unclear if he's going to make a statement, try to rally up supporters. we understand that some will be across the street from the jail when he emerges. and remembering what he did in florida when he was in miami following that arraignment, he went to a cuban restaurant and took a photo opportunity with

everybody trying to act like he had something to celebrate. this could be another peach out of the trump, which always leads to theatrics on a day like this. haidi: we have seen, with these previous legal issues, and as you say, the federal election case in washington, new york and florida criminal cases as well, do we expect this to garner even more support as he tries to return to the white house in 2024? joe: if history is any guide, and that is a short-term factor. it's helping him on the primary tour. every indictment is followed by a series of emails, raising money and seeing his poll numbers rise. we've seen fatigue around these indictments, but i think that's why they want a mugshot. they want to have more of an opportunity to make this a moment for the campaign. that's the primary. the conventional wisdom is, once he enters, if he did become the nominee, a general election

cycle, all these indictments start to weigh against them. this could cut both ways. joe biden is hoping it will be donald trump who has the nomination for the republican party for that very reason. he sees donald trump as formidable because of all of these legal challenges. haidi: bloomberg's washington correspondent joe mathieu on top stories. we will take a look at another political story we are tracking early assessments of the u.s. and u.k. suggest the death and plane crash of the russian mercenary leader was an assassination that was probably approved by president vladimir putin. that's according to officials who did not want to be named, special authorities say he was aboard a plane that crashed on thursday while flying from moscow to st. petersburg. he set on state television that the leader was a talented businessman who made serious mistakes in life. he led a mutiny in june against putin's military leaders. shery: take a look at how u.s.

futures are trading at the moment. not a lot of movement, but this after we saw u.s. stocks falling and closing. u.s. sec. -- session lows, widening out its weekly advance. we have pressure more on the 100 futures were we saw the losses talking to percent, the likes of tesla, apple really falling more than 2.4% -- 2.5%. the optimism over nvidia touched on an all-time high on earnings optimism, but today it actually gained only about .1%. we have more to come on daybreak australia. this is bloomberg. ♪

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and yields, the dollar gaining ground against all of its g10 peers. take a look at the other side of the trade because we have not a lot of movement right now but the aussie also halting those losses that we saw in the previous session. 64 u.s. cents is a level. the kiwi often not a lot of changes at the moment. but we are watching the japanese yen very closely because we have pressure after it reached that one-week high against the u.s. dollar. you can see there that it is very near that 146 level. we are watching the euro as well and changed at the moment after rebounding above this 200 a moving average. let's head back to the jackson hole economic symposium. that will make a huge difference on where affects and currencies go from here. bloomberg's michael mckee standing by with our next guest. michael: jay powell is not the only important central banker here. we have a number of central bankers from around the world and one of the more is the

president of the boom this bank. a member of the ecb governing council. take you for joining us here today. you have the same sort of issue as the u.s. does in that inflation is too high. but the underpinning economies are different. can you give us a feel for what the european economic situation is in relation to rates at the moment. bikes i'm not sure if the situation is different in economic terms. i think the situation is very tout -- very challenging. this is for sure -- it seems to be in europe that the labor markets on the similarities with the u.s. is really pretty good. so we have a good labor market situation, but the economic activity is slowing, this is for sure, but this is not a surprise to me. i think when you're hiking interest rates nine times, it's for sure that the impact here and where we are seeing this, this is good and bad news,

inflation is coming down, core is still sticky, so the next month we will get more information about this. likes do you think going into it at this point we would lean towards pausing? there's a split in the markets about it and there seems to be a split in the governing council amongst those who think sue can wait, take a look at what's happening with the economy and those who think we still need to do more. >> for me it's much too early to think about a pause, for me, we have to wait for the next number, so we create our july meeting of the governor counseling, if we could wait for the numbers we see in the september meeting. and i will wait for the september numbers and then we will see. >> you are in kind of an interesting position because historically this bank has been the most hawkish, the most opposed to inflation, and the german economy is in the euro zone and in the eu now. so, how do you lean in a situation like that?

greg's first of all, i hear a lot of talk about germany, the sick man of europe, this is definitely not the case. we should not underestimate the adaption capacity of the german economy, yes, we are going through something that's a complicated months, this is for sure, but i'm not too pessimistic. there is also no time for complacency. this is also for sure we see what is necessary to do. i have a lot of trust in politics that we are going into the right direction. it's this for next year. when you talk about monetary policy, what i said is that we have to be stubborn even more stubborn then inflation, this is what we have to do, this is our mandate, we have to bring inflation down to 2%, and i guess there's this overall understanding and the governing council that this is our mandate, and we have more or less been focused on we will do our job. >> you had a quarter of contraction, you had a quarter

with no growth, do you worry that if you keep going you are going to put germany into recession? rex i do not see that as a hard landing scenario for germany. i am still pretty optimistic that we will have a soft landing. yes, the third quarter seems to be pretty weak, but as i said, for next year, i am more optimistic. >> what gives you reason for optimism? the numbers we just saw a, the pmi's come in very weak, not just in germany, but across here in the united states. why are you up in this question mark -- why are you up in this? >> the pmi number was not so bad. we could see that private consumption is ok. it seems to be much more strong than we thought. it just went up more than we had on our radar. maybe 12 months ago. as i said, it is much too early to say whether this is ending up in a recession.

do not see there is a recession coming in that capacity of the german economy is good. and we would do our job, so i do not see it that we shouldn't be here in a scenario where we have this hard landing picture. >> let me ask you about inflation. do you agree with the ecb economist who suggested that maybe core inflation has peaked? >> as i said, speculation is not my thing. i think i will wait for the real numbers, yes, there is that understanding that the overall inflation is coming down, it's often like that, it takes more time for the core inflation to come down. that could be a possible scenario, but we should wait for the september numbers and then we will decide what is necessary to do. >> is a governing council seem more divided given the fact that some nations have stronger growth, some have weaker growth, some have stronger inflation, some have weaker, unlike the fed when you are looking at one measure for the whole economy. >> first of all, we shouldn't

underestimate with the governing council did so far. we start our rate hikes in july of last year and we did a pretty good job. so interest rate did what they do, now they will bring the economic activity down. inflation is coming down. this is what we know from textbooks. as i said, the governing council, i see a good team spirit in the governing council in i see for our september meeting that we would check what is telling us -- with the data is telling us. so, this is what i'm waiting for. quick so you can call us the day before the meeting and let us know what you're thinking. do you believe in the long and variable land -- lag theory or the idea that wags have gotten shorter. how much of european monetary policy has at the european economy? >> i think we all know it takes some time in the impact is coming from what we did in the past.

so there is a lot of research going on. what ic is the most effects we will see next year, so what we did over the last 12 months, but nevertheless, we shouldn't forget inflation is still around 5%. so, this is much too high. our target is 2%, so there is some way to go, but as i said, coming back to my point, we have to wait for the september data, and then we will throw out the right decisions. >> you have a communications issue if you decide that you want to wait, that the markets might interpret that as they are done and then re-? >> i think the communication issue, as far as i can oversee the whole situation market participants, they have a really good understanding of what is the reaction function of the governing council. and this is what we did over the last couple of meetings, that we

are data driven and we have this meeting to meeting approach. so it's not the end of forward guidance, but the situation is rather complicated, so the circumstances are very difficult, so it went pretty well over the past couple of meetings that we wait for the data, and i guess this is the right approach for the next meeting. >> the question is, do people listen to you when you say that, of course, because the markets are trying to guess what your peak rate is going to be. >> i think markets should listen to us, often i see a kind of misinterpretation, but they should listen to us, and they should look back at what we did in the past, and their approach is also not changing for our september meeting. so, the first pmi data, ok, they were weak, what we saw for -- yes, as i said, we shouldn't overestimate the first data that came in. we should wait for the inflation data for august and for our

forecast we are doing for the next months. and this is relevant to me. >> you can come on bloomberg television any time and talk to the markets. the president of the buddhist bank, a member of the ecb's covering council joining us in jackson hole, wyoming at the kansas city fed economic symposium. shery: thank you so much for that conversation, we will be back with you at jackson hole very soon with more conversations. of course, the economic slump in the world's second-largest economy will be the elephant in the room in those discussions at jackson hole. that's take a look at the out -- at the outlook for those chinese assets. the cage of shares of hong kong gapping its best in a month and a last session. annabelle joins us to discuss why. despite this slump in most of the economic data out of china these days, investors seem pretty optimistic. what's going on? >> it's very interesting, when you take a look at the macro

economic indicators, they are bad. but it's been interesting is we've had a slew of tech earnings over the past couple of weeks, alibaba, tencent, made swan the latest yesterday after the bell, they've told us consumers are starting to spend more. that's been one of the key takeaways. we actually saw made swan jumping more than 7% yesterday ahead of the numbers being released which came out after the bell. just to recap the numbers, we saw the fastest growth for the company since 2021, which is something that has been at goat across the other big tech earnings. sales up 33% in the june quarter to $9.3 billion. that was better than what had been expected. the company also swinging back to operating profit. the company saying chinese consumers are starting to spend more on meals, on travels and we have seen stronger services demand over the course of the seven months in china. where the company sees this going, they did slagged in the

earnings call that they do start to see them pulling back into the end of the year. yes, there are those headwinds that you were saying that we continue to see in the macroeconomic indicators. you can add to that some seasonal factors and some weather was another thing they sided with on the call. what bloomberg intelligence is saying about this, they are optimistic. they say made swan's standing apart from its rivals. and what they are pointing out is that the local commerce profit beat came in at 35% growth on the year versus their projection for 17% growth. so a big gap there shows that they can really withstand that order of volume slowdown ahead. haidi: we could be seeing good news when it comes to consumer sentiment for china. annabelle: it's interesting because you do have the negative news on that headline economic readings coming through, but it's the survey that has just come out overnight, that are

also telling a little bit more positive of the story. perhaps there is green shoot starting to appear. this chart is looking at the survey done by the u.s. based company. but essentially the -- essentially they found chinese consumer sentiment is starting to rebound in august, we are still off the highs we had in 2021, but still it is an improvement for where we've been as we've created down there, that was just ahead of the reopening in china at the end of last year. bank of america was another when we were talking about at the top of the hour. this goes through the results if you change on. they also have done their own call show that china's consumer's willingness to spend as slightly improved in august and where they found this was when they spoke to people on the ground in china, quite a majority of them were looking to spend and improved -- an improved number of those people were looking to spend more on big-ticket items already -- or

to upgrade their brand of choice of the coming six months and broadly also looking to spend more. just a couple of surveys we are tracking this morning when you see the economic impact or market implications when we come online in a couple of hours. haidi: much more to come here on daybreak australia. this is bloomberg. ♪

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haidi: appearing to have stung by fraud. the u.s. trader of metals has filed suits in london and singapore claiming that after paying several million dollars for a shipment of nickel, it discovered only containers of steel ways. bloomberg su keenan has more on this. this is very similar to another alleged fraud earlier. su: nonexistent nickel. earlier this year we were -- we reported on a case involving a $600 million alleged fraud against a major commodity house, and this year, it happened earlier this year and it shocked the industry. now we've got another case involving a u.s. midsize commodity house, mainly focused and known for aluminum. but they are saying that they spent more than 3 million to buy nickel this time last year. when they opened the containers, they found worthless steel waste

instead. they filed lawsuits in both singapore and london, and the details of those lawsuits are really compelling. they are alleging that the two companies that perpetrated this fraud, they are saying that it was supposed to be a simple route from singapore to a to buy port. they bought in august and expected to receive it in august. instead, the metal ended up in a -- on a dock in malaysia the following march. when they opened the seven different containers, what they found inside was a shocker. it was 17 jumbo bags of worthless steel waste. not nickel. in fact, they did a special analysis, and there was no nickel present anywhere in this shipment. again, shocking story. there are links between the two cases. some of the same trades, and there is concern that these

transactions are part of a broader pattern that traced back to one individual. again, it has taken the metals industry by shock that there is yet another case. haidi: what happens next? shery: heidi seems to be asking you about what happens next. su: the main thing that's happening is the lawsuits. several of them are waning their way through the courts. now there's a new set of lawsuits into separate courts, singapore and london, and also, this is yet another blow to the confidence in the metals industry, which has been plagued by these scandals. a lot of the scandals have to do with the fact that there is a lot of time and distance involved in shipping, that these are shipped in large containers, and actually the buyer of the

metal can't really be assured of what they are getting until they actually receive the shipment, open it up and look inside. and this is the second major case involving millions of dollars were looking inside was a shocker, indeed, and there are many in the industry that believe this is something that really has to become a priority so that it doesn't happen again. haidi: bloomberg su keenan. we will head to another commodities story in european, gas prices easing that a deal has been reached between woodside and workers between western australia. there is still a threat of strikes at chevron facilities. here are the details. we had some hints that they deal mayhap been well received. what do we know? quakes the threat of strike action has been redrawn. that's a very good start and word to be put back in place it when a happen until september. it has really receded and union spokesperson making very

encouraging sounds, calling the steel industry standard and that it reaches their key outcomes. in terms of the details, you want to be an oil worker, they are pretty good, base salary of 200 thousand on a flight in, fly out contract. 105,000's per year on top from offshore. 14% annual asian. total pay package could be 360 a australian. that's about 230 6000 u.s.. just announcing a rise in first-half profit is well up to $2.7 billion. so, plenty of money in the lng sector at the moment. this deal still needs ratification, but markets breathed a huge sigh of relief on this news. benchmark futures slid more than 20%. the strike, had a gone ahead, would've impacted about 10% of global supply. shery: how much volatility is still in store for gas markets will we have chevron workers endorsing strike action? paul: you are quite right, there

is more potential for industrial action at chevron's plants at the gore gone and wheatstone facilities, so workers there folded in favor of industrial action. that doesn't mean it's going to happen, that just means the option is on the table. chevron provides a smaller amount of global lng, about 5% of world supply. seven days of notice is required of the strike were to take place, and there will be another vote on that on monday. some positive signs, chevron says they are still in talks with both sides negotiating. they are trying to find a solution in this breakthrough we have seen is an encouraging side that a deal can be reached. shery: paul allen joining us from sydney. another company we are following in australia is wesfarmers. they reported a full year of net income just under 1.6 billion u.s. dollars, that's an almost 5% increase from one year ago, there are interested in retail, e-commerce, mining and insurance. the company says it expects

elevated inflation and higher interest rates to continue impacting demand in australia. we have more to come on daybreak. this is bloomberg. ♪

♪ (upbeat music) ♪ ( ♪♪ ) woah. ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall. haidi: leaders have top oil exporters of saudi arabia and

five other countries to join their block is part of efforts to expand their global influence. bloomberg's jennifer reports from their summer -- summit in johannesburg. jennifer: the 15 bricks summit culminated in an official announcement by the leaders about expansion. six countries were invited to become members. they include argentina, ethiopia, egypt, the uae, saudi arabia and iran. now these countries will need to review their official declaration, agreed to the terms and will become new members as of january, 2020 four. what we heard from the bricks leaders is that this is the first phase of expansion and they are open to expanding more down the road and potentially adding new members. we also heard china commit to $10 billion in global development and also from russia's president vladimir putin saying that negotiations are close to reaching a resolution with african countries about the resolution

of the deal. on the issue of currencies, we did not get an announcement about a joint currency between the bricks block. what we heard from leaders is that they are trying to encourage more trade in local currencies. this task there finance ministers and central bank governors were taking a look at different payment instruments and mechanisms to encourage more trade in local currencies and move away from a dominance on the u.s. dollar. in johannesburg, i'm jennifer, bloomberg news. shery: here are some of the top corporate stories we are following, jp morgan has won a u.s. federal acute -- appeals court confirming leverage loans are not securities, investors had sued the bank over $1.8 billion of syndicated loan notes after borrowers filed for bankruptcy. the court's decision is welcome news for banks and private equity firms, which often make use of leverage loans and buyout deals.

they expect to borrow $5 billion from the structuring debt market to help fund its investment in the u.s. sandwich chain subway. a group of seven banks has committed to provide $4.9 billion of temporary financing. the funding is expected to be converted into one of the largest whole business deals ever. haidi: coming up in the next hour of daybreak, we will continue our live coverage of jackson hole as traders await fed chair jerome powell's key speech. the former bank of israel governors will be joining us shortly. business and policy leaders are also gathering in new delhi for the b 20 summit. we will speak to the u.n. global compact ceo. ♪