jj's finale. butt punt! oh, is that what the my stuff feature was invented for? saving butt-related content? cause i thought it was for keeping your favorite tv shows and movies all in one place. i'm sorry, mr. sanchez. live tv and sports. and more! but mostly sports. that's fubo! haidi: you are watching daybreak asia coming to live from new

york sydney and hong kong. >> we are counting down to asia's major market opens. >> the top stories this hour asian stocks poised for gains after jay powell told jackson hole the fed would proceed carefully on whether to hike rates again. china is lowering on stock trades and pledging to slow the pace of ipo's meanwhile evergrande shares set to resume trading. plus -- founder and chairman talking to us from the b 20 summit about competition with reliance and bridging the digital does -- divide. >> take a look at how u.s. treasuries are trading we are seeing a little bit of upside extending those gains we saw in the friday session. in fact we saw the first weekly gain in the 44 u.s. stocks. we will have to see if this trend actually continues because we have seen a little bit of lack of conviction in the u.s. stock markets. we are talking about the s&p 500 only rising six times this month.

we could be heading towards a very volatile week given policymakers at jackson hole hinting that we would be seeing higher for longer rates. even chair powell talking about the possibility of raising the fed fund rates further if appropriate. we saw treasury yields really spiking across the board, the two year yield past that 5% level and the u.s. dollar continuing to gained ground for a third consecutive session. although that did not weigh on oil prices we actually saw two weeks of losses. fort wti. we are seeing a little bit of upside right now but the thing about oil is all to do with potential global supply rebounding and of course that demand from china potentially being weak given the slump in their economy. haidi: for the first time fed chair jay powell has acknowledged progress on disinflation and hinted multiple times that real interest rates

are already quite restrictive. this makes sense with signals from jackson hole, our chief rates correspondent for asia and mliv contributor garfield reynolds joining us. we knew that it was going to be perhaps more greenspan, certainly when it comes to this continued careful management of the economic and policy risks, what was a key takeaway as we saw this attempt to finally balance the communication from jay powell. >> it is an interesting speech -- and i think it is important to parse the details. as we do for all fed speak but the furthest one in particular. he did mention -- monetary policy will remain restrictive as we head towards 2%. that is what we have come to expect. it did sound like a little bit of a threat of perhaps more interest rate hikes. not a promise but definite possibility that we could see another hike from the fed because while he did mention that inflation was slowing, we

are seeing disinflation, he also pointed out we are seeing the economy not cooling as fast as expected. in fact we are seeing it heat up and that could have implications for how inflation progresses or how disinflation progresses further down the line. the real key takeaway is that there is a little head scratching going on. if not confusion at least wait and see mode because it is back to this timing issue. in the transmission mechanism is. let's have a listen to what powell said about policy being restrictive because that line was also extraordinarily significant. jay powell: see the current stance of policy as restrictive, putting downward pressure on economic activity hiring and inflation. we cannot identify with certainty the neutral rate in interest and sauce there is always uncertainty about the precise level of monetary policy restraint. >> he clearly does not know, the fed does not know and there is a bifurcation on the fed about

with the long invariable lags are. some people think they are a lot shorter than what the fed chair chair thanks and i think that is extraordinarily significant. he did mention policy as restrictive in that in itself is an interesting development. haidi: garfield when it comes to the market reaction was it justified because we saw yield spiking but also stocks gaining ground. garfield: yields spike but then they mostly came back down. which is part of why i think stocks ended up rallying. powell did not move the goalposts he sounded a little firmer about the bias towards a hike, at least one more hike probably this year. but the bond market was expecting that there is a good chance there will be a hike. probably in november. so we had to year yields ending up on the day but six basis points which is a very modest move.

we have seen a lot larger moves than that. the bond market remains set up in what might be termed tactically bearish strategically bullish situation where it is braced for at least one more hike and you need to factor that in. if the fed does not hike again and that is great if you are a bond investor, but you have to expect it. but they remain convinced that by this time next year the fed rate will be at least 25 basis points lower. probably significantly lower so that means over the medium-term outlook you have to expect gains and you have to look on any selloff which sends yields higher as a buying opportunity.

i think we are set up for the bond market side of things, another few months of this choppy action where every now and then because of data or fed speak or a pause or good bond sale will get a strong move once a -- way or the other. we are ultimately all waiting for the time the fed says yes we are done with rate hikes than the next big battle will take place in markets which is can we guess correctly when the fed is going to turn around and start cutting rates and why is it going to be doing that. haidi: is there a question even if the data points remain strong trending for the fed, can they singularly continue to raise

rates when you have got what's going on in china. it potentially these recession struggles in europe as well. how does the rest of the world play into this? garfield: i think the rest of the world is fairly marginal is -- as far as the fed is concerned because we have seen on plenty occasions where the rest of the world is doing something that does not have a major impact on the immediate direction for the u.s. economy. when you look at the struggles in china and europe you have to say that probably helps to feed into the willingness of the fed to restrain itself when it comes to further hikes. there are plenty of signs out of the fed that they are concerned not to go too far too fast now. that is a big change from a year ago when they were busy hiking 75 basis points and wondering if that was too slow. now if they do hike, it is 25

basis points at a time and it is every second meeting or every third meeting. maybe every fourth meeting. they are back to a situation where if they do hike it is very gradual and i think the global outlook does feed into that. but more than anything else what is going to matter is what the u.s. data is showing, what the job market is telling us, what are inflation fears telling us. those are the league -- laser focus for the fed. if china enters a recession or europe, but the u.s. unemployment rate falls and inflation shows signs of picking up, i think it would be pretty clear at the fed would do what it has to do. shery: and we have seen signs of inflation picking up but concerns about whether that will be sustained from japan as well a day after chair powell actually spoke. we had the governor also

speaking at jackson hole, did he give any hints as to when there could be a change in policy there? vonnie: if you gave any hint it was that it is not right now. in fact surveys we have conducted would indicate people have pushed out there expectation for any kind of a y cc move or anything like that to next april. what he did say is we think underlying inflation is still a bit low our target of 2% and that was worn out by tokyo inflation data on friday which came in below 3% for the first time in a year. there is disinflation, it is getting more complicated now that the u.s. is performing as it is. in fact we are seeing very strong growth in the u.s., stronger-than-expected. there is more uncertainty as to what the fed will do the yen has weakened almost 12 for -- 12% versus the dollar. there are positives and negatives. he is still surveying the landscape. as a side note what he was speaking about on jackson hole was about a panel of globalization and expressed concern that japan may not be able to attract the company's it

should be able to attract because it does not have the infrastructure. he also mentioned disappointment china growth. haidi: vonnie quinn and our chief correspondent garfield reynolds. it let's delve into that china growth story or the lack of growth. shery: beijing lowering its soft trading stamp for the first time in 15 years and pledging to slow the pace of ipo's. this as authorities tried to boost market sentiment. our chief north asian correspondent stephen engle joining us from hong kong. the latest in a string of moves to support the economy. >> absolutely and the stock market seen as a proxy to the economic woes seen in china and you can bring up a number of different stock charts to show it is down about 8%. the csi 300 down about 8% over the last month. it is down about 12% since its peak this year on january 30 and down 36% since the peak we saw

in february 2021 through the pandemic, down 36%. it has lost a third of its value. that is a proxy to all the weakness but then the news flow has been very negative. we have had the ongoing property sector problems, trust defaults, and we consumer sentiment. domestically there is a mattress mentality. people are sticking their money under the mattress and not spending, not buying stocks. and then foreign investors are not buying into china because of a slew of weak news and also week sentiment and geopolitical concerns. you have had foreign investors into china, being net sellers for 13 consecutive weeks. excuse me 13 consecutive sessions through wednesday that is the longest streak ever. all of that is anecdotal but also very data-driven evidence that the chinese authorities need to do more. that is what they have done. two different agencies coming out with easing measures, the ministry of finance coming out and saying we need to invigorate

capital markets and boost investor confidence. to say the least for sure so they are going to be cutting as of today the stamp duty by half from 0.1% on stock trading 20.05%. whether that encourages the largely -- largely retail market in china to take that money out of the mattress and put it into a falling knife, that is yet to be seen. then we also had csrc, the securities regulator saying because of recent market conditions it is essentially going to temporarily put a moratorium on new initial public offerings. it did not give the reason as to why that might boost the market but it does not do a lot for sentiment when new issuances perform pretty badly. also it keeps money from flowing out of fundamental stocks and into these new issuances. a couple of moves by authorities in china to try and stem that rout in stocks, is enough though?

stephen: haidi: of course we had industrial profits over the weekend, what does it tell us in terms of what this week recovery is looking like? stephen: absolutely it shows a further deceleration of profits in the industrial sector. yes it was not as bad as june so we had industrial profits falling 6.7% year-over-year in july versus 8.3% in june. not as bad but through the first seven months of this year it is down 15.5%. not as bad as a year ago levels of 16.8% but it just really shows china's economic recovery lost further momentum in july. a week recovery and deflationary risk, deflationary risks are a big issue here. it remains overhang on this industrial sector. yes in july there was heavy rains in many parts of china,

there was flooding. that dampened output but again the overall sentiment is weak demand and that leads to week production and week profits. haidi: stephen engle there with the latest on china's slowdown. of course such a big part of this is what happens with the property sector we have got a major player at possibly the most major player -- evergrande trading resumption, not exactly great market conditions to be coming back but this is a momentous day for the company. annabelle: yes this is a stock that has been suspended for 17 months now but the company says it has essentially met the conditions in order to restart or resume trading. they want to start on monday. this is going to be a lot for investors to consider as to whether they want to buy into this stock. you recall when it was last told that it had already dropped around 95% in value from its peak back in 2017. the news that needs to really

beef -- really be refocused is restructuring plans and also earnings. on sunday at the company reported results for the first half and it showed a further loss to $4.5 billion. net loss adding to more than $80 billion from the two years prior. certainly something to be watching, creditors. we have meetings planned for monday to discuss or vote on the offshore restructuring plan. a lot for investors to be focused on today. let's take a look, you mentioned what trade reaction we can expect. some of the developers that have been holding in the past, this is the reaction we saw when it did start trading again. you can see here big drops across the board. it does not portend a very well, we get evergrande restarting in just over two hours. haidi: definitely the stock to watch today.

annabelle there in hong kong with a look ahead and we will also be discussing the economic week ahead and the central bank chiefs we have heard from jackson hole. hsbc chief economist fred newman joins us nest. -- next. ♪

shery: you are watching the

market opens across asia after policymakers i jackson hole signaled rates will likely stay higher for longer. hsbc says it is these 75 basis points of cuts from the fed next year as inflation declines. let's discuss with fred newman the bank's chief asian economist and global head of research asia. great to have you with us. i know we got the usual hawkish remarks coming from the fed but also perhaps reading between the lines the acknowledgment of disinflation in the super court. would you take that as examples of a dovish tilt, what was your key takeaway? fred: in the near term they really signaled there is no urgency for moving rates lower and a wait and see mode. the underlying message here is don't get too excited about near term rate cuts. we are really awaiting a further disinflation of the economy, we are going to wait a few quarters until we actually start to look at easing policy. i think there was a quick

reminder to markets that the feds job is not done yet. there 2% inflation target, there was nothing at jackson hole that would suggest they would relax that target. there is still a way to go to get inflation back in line before we can contemplate rate cuts so middle of next year seems to be the timing we have in mind. you might see quite rapid rate cuts coming and it will be a while before we actually start that thing cycle. haidi: especially when we have a resilient labor market we are expecting job numbers this week. fred: that is right all focus is going to be on the employment numbers. we have seen some softening in job growth in the u.s.. it is not quite as strong as we initially thought but still the u.s. economy is still generating jobs. the unemployment rate being extremely low. it is very hard for core inflation to come off if you have such a tight labor market so we are probably going to need to see a rise in initial claims.

we need to see a bit of loosening in the unemployment rate in order for the fed to say the underlying inflation risks are manageable therefore we are going to cut rates. again it is going to take a while before we get to that point. haidi: overlaying all of this is what is going on in china. are there policy measures at this point that would be effective? fred: we have seen them come out with a host of measures all the time. we have just seen for example a cut in stamp duty, but it is still very incremental. remember the economy is suffering from major headwinds, particularly from property but also from exports. it does take a bit more to really get ourselves out of the rut here, probably more fiscal spending is needed. not just regulatory changes, measures to help investor confidence. that is always very helpful, but if you want to really address underlying demand you have to

see a stabilization in the property market and we are not quite there yet. there are measures in place but we have to see how much traction it will really get an likely they will have to do a bit more in order to stabilize overall growth in expectations in china, it may take into fourth quarter before we really see those measures gain traction. we are almost at the end of the year before we see that stabilization in growth really come through. haidi: we are seeing for investors india it really stand out as a proxy to that em china play now. is there anything to the downside of risk to the indian economy given how hot it seems to be powering ahead? fred: it is almost kind of the opposite from the mainland chinese economy where we are talking about this inflationary pressures in mainland china. in india at potential risk of the other problem, rising inflation pressures. particularly in food. we sought renewed price

pressures come through. they may not necessarily address this with interest rate hikes anytime soon but it is clear the indian economy is doing very well domestically. that means the rei will have to be vigilant about a resurgence in price pressures and that is of course the opposite of where we stand in china. we can also draw one other point here and that is not these -- this slowing chinese economy actually helps india because it puts a dent on commodity prices globally. and india is a big commodity importer therefore weaker chinese growth helps with the margin and dampen down inflation pressures in india but nevertheless we see price pressure still bubbling up in india. in that is perhaps one of the risks to watch for. haidi: always great catching up with you chief asian economist and cohead of mobile research, at hsbc. we have more to come on daybreak asia, this is bloomberg. ♪ you heard of a town named dinosaur, colorado.

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shery: you are watching daybreak asia and these are some of the corporate stories we are tracking. it largest fuel maker saw its profits shrink for the first half of the year. it posted a net income of just under $5 billion. that is a fall of about 20% from a year earlier. this was in part due to lower oil prices as well as fuel demand being weighed down by china's sluggish post-covid economic recovery. national australia bank is reportedly planning to cut about 10% of jobs at its markets division as early as this week. the afr quotes sources saying the move will mainly affect capital markets employees in the corporate and institutional banking unit. now it announced plans to reduce headcount by its peers including westpac.

haidi: let's take a look at some of the currency pairs we are seeing trading at the moment. we are waiting for a couple of things for asian markets to process. one is still the narrative jackson hole, the other is going to be the data dump from china over the weekend as that start of retrading for evergrande it will be key. we have seen some of the biggest moves when it comes to the gannett weakening to that new 2023 low amid the pressures coming from yields as well as the u.s. dollar. watching the yuan today given the level of policy measures so... i know you and george were struggling with the possibility of having to move. how's that going? we found a way to make bathing safer with a kohler walk-in bath. a kohler walk-in bath provides a secure, spa-like bathing experience in the comfort of your own home. a kohler walk-in bath has one of the lowest step-ins of any walk-in bath for easy entry and exit. it features textured surfaces, convenient handrails for more stability,

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haidi: -- metals is due to report on monday and we will be watching for the impact of weakness in china's iron ore demand.

-- paul ingalls joining us now and perhaps we'll gets the more interesting part of what we heard. it has been quite a dramatic morning. >> it has a new ceo and we do not see that coming. fiona hit the ceo had only been at the job since february. now she is gone. we don't know a huge amount of details apart from the statement we got saying her exit was both friendly and mutual. as brief as it was, over. the new ceo is going to be dino and he has been with the company for some time. we will continue watching the news on this to get the detail of what happened here. in terms of the results we are still waiting on those but of course fortescue exposed more than most to iron ore prices and what is going on in china. the iron ore price holding up pretty well still about a hundred dollars per ton but china of course as we have discussed frequently has its shares of troubles at the moment and china is fortescue's biggest

customer by far. it's out there net income expected to be 5.57 billion. the dividends should have taken a hit down to $.82. we will be watching cost pretty closely, fortescue a pretty low cost producer. but as you say what has been grabbing all the headlines is that very short tenure from a ceo fiona hick. shery: it is not just that we are also expecting a new board member as it diversifies away from being a pure plain iron ore producer. what is the plan there? paul: a lot of changes at fortescue today and this is the one we got wind of first. that happened over the weekend, normally we would not talk about a new board member but this one is quite interesting. dr. larry marshall is the former ceo of the csiro which is australia's government research body and in his eight years in charge there he had really transformed that organization and now has a large scale venture capital fund involved in a number of startups. he turned down an extension there to join fortescue's board

and he was introduced to a very large crowd of their 20th birthday party that happened over the weekend at one of their mine sites in their remote region. he told the crowd that fortescue is no longer a mining company or energy company but a technology company. fortescue working a lot of technologies to turn itself into a green zero carbon minor. we will be making at least five investment decisions before the end of the year on green energy projects. also developing the world's first battery powered hall trucks so a lot of interesting innovations happening there and dr. larry marshall is going to be at the cutting edge of that. haidi: paul allen there with the latest and we are still waiting for those numbers from fortescue in the meantime let's take a look at these markets. a lot in terms of what is happening in the last few days for asian investors to be white -- waking up to and digesting. annabelle: and really the weakened announcements that came through, for instance cutting the stamp duty on stock trades

and lowering things like margin requirements, regulators as well saying they are planning to slow the process of ipos in china. these are some of the announcements that came through from two different regulators in china over the weekend. you can add to that the evergrande earnings as well, the company applying to resume trading monday. there is a lot today for china stocks. when you take a look at the underperformers that we have seen for mainland equities it points to why there is so much pessimism and concern from regulators because if you take a look at that other chart, this one as well, just showing the msci china versus the s&p 500 index. that underperformance we see there is now the widest cap since 2001. really something they need to be looking at quite closely. of course the big question is what we have seen so far, will that be enough to boost market sentiment because the story has also been around foreign withdrawals. we have seen around $11 billion of outflows over the last couple weeks. shery: and markets continuing to

digest what is being said at jackson hole, the symposium where we have central bankers really commenting on everything about the economy and monetary policy. we also heard from former kansas city president saying she still can say the fed has delivered a soft landing for the u.s. economy despite signs of slowing inflation. she spoke to us in jackson hole after chair powell said that the central bank was prepared to raise rates further. >> i think what central banks are worried about, what i would be worried about, is taking that as a consistent signal. i would want to see some more data and it might mean i would be patient in september while i waited to see what the next data release looks like. >> could you keep that patient's if inflation was either stagnant or moving very slowly or would you feel the need to go higher? you were more hawkish before you left. >> i think what you have to be

really attentive to is determining how long it will take you to get to 2%. we are going to see this committee put out a new set of forecast at their next meeting and i think looking to see where they peg their expectation around inflation by 2025, is going to be an important signal of the patients, where they see the fed funds rate going. i think you're going to have to be very flexible. i think you have heard that today. >> it is clear they are going to have to raise their unemployment or change their unemployment forecast because it is just not doing what they thought it would do and what you thought it would do. you have a theory as to why? >> i keep going back to the situation, the shot that hit our economy. this was an extraordinary shock and it was met with an extraordinary response so when you think about the trillions of dollars that the government transferred from its balance sheet households, to businesses, and you think about the feds very aggressive monetary policy,

i think that combination with those imbalances made it difficult to read any signals. now you are beginning to see both the supply side easing up, monetary policy reversing course. but there is probably still some stimulus in the economy that we see the effects of so it has made it more resilient. the labor market has stayed tight. >> so you are a proponent of the long invariable lag to still hit the economy? >> as i have looked back over time, again this is a different kind of shock we are working through, a different kind of imbalance. but in the past monetary policy has taken some time, up to 18 months or two years to see full effects. that is why i am a little hesitant to say soft landing is here, that this will be the case over the next year or so. i think you just have to wait and see. shery: former kansas city fed president and bloomberg is michael mckean. we have more to come on daybreak asia, this is bloomberg. ♪

haidi: japan aims to have women make up at least 30% of directors at major firms by 2030, the government will press the target to be included in regulations for companies listed on the prime market index of the tokyo stock exchange. japan exchange group ceo spoke to us exclusively about how

investors are reacting to these proposed changes. >> this is showing a very fair bubble reaction over this request at the end of march. i think they are now focusing on what is our next step and whether this change will continue. i think we have to show them the progress periodically, that is what we have to do in the future. >> what is the next step? >> we issued a request at the end of march and we are now waiting for the reaction from investors. already some of the companies have already disclosed their plan. how to include -- but the numbers are very small still. so we are waiting for the

disclosure and once we authorize this disclosure then we will share findings publicly. we will share the findings with the market. >> you mentioned a room for improvement. what kind of improvement? >> i think there are a couple. in the past eight years of corporate governance reform we saw some of the improvement of new requirements, the board members of more than one third of no exit board members -- already 92% of the planned companies have achieved this target. but what is the status? probably next question is how do we improve the substance of the corporate governance reform as well and this will probably be more difficult than just this

new requirement. >> you did mention we want to have more foreign investing in the japanese market, what are the trends we are seeing here and what are some of the plans to make the market more attractive? >> the first thing we have done, a couple things -- we will revise the requirement for companies, the process of ipo and also we revised the direct requirement as well. so those companies that do not need to raise funds at the time of ipo, they can come to the market directly. i think those are the kind of things we are doing and also government, the five-year startup growth plan. i think we 100 percent support government initiatives and i

think we will do whatever we can do. and also we have been promoting cross-border ipos from asian companies, countries and at this moment 27 already listed companies but we are in the pipeline with 20. we would like to make our ipo market not only for japanese startups but also for asian startups. >> the exchange is really the leader for a lot of listed companies when we talk about board diversity that is another goal we are setting for our corporate governance. the exchange actually does not meet the 30% female board member yet so what is the plan around that? >> this is a subject of the nomination committee of gpx --jpx and we have five members. i am only one member of the

executive side and five members, the chairperson of the nomination committee is also a non-exec board member. the subject of the discussion of the nomination committee, i think we would like to achieve the target of 30% of the board members before the target date of 2030. >> japan exchange group ceo speaking exclusively to bloomberg's winnie sue. we have more to come on daybreak asia, this is bloomberg. ♪

haidi: some headlines we are tracking from around the world russian investigators have confirmed the death of prigozhin in last week's plane crash. they say dna shows all 10 passengers and crew listed as being on board when the jet went down. president putin spokesman has dismissed u.s. suggestions that the crash may have been an assassination by putin. three u.s. marines were killed and five are in critical condition following a military aircraft crash off the coast of australia. the plane went down and you --

personnel from other nations -- the cause of the crash is under investigation. a storm northeast of the philippines has intensified into a super typhoon, the philippine national weather bureau says it will likely remain in that category until it makes landfall in taiwan on wednesday or thursday. flooding and landslides are possible in several provinces including isabella with sea voyages suspended in northern quays on. shery: sustainability and digital transformation have been in focus at the g20 summit in india. the official dialogue with the business community, founder and chairman natal spoke with us about the group's role in closing this digital divide and africa's economic integration. >> this is a global body. a lot of international people have been cochairing the panels, action councils. i worked on the africa integration council. we are hoping that two or three

big seminal recommendations will be picked up by g20. one of them is likely to be in africa, our prime minister is already talking about africa being brought in as a core member of g20 and more importantly how the world should now start to focus on africa. making it a base of food production, economic uplifting activities, digital going into that continent. a number of african nations will become so. the second is india's digital public infrastructure and how nations around the globe especially those with out enough infrastructure can lead like india using the type -- for the benefit. >> i want to get onto your business because that is one of my core areas of interest. how do you see the competitive landscape now that you are down to 2.5 -- i don't know if we call it that but you have a forceful competition in terms of what alliance is planning to do

across the spectrum. >> i think india has a huge digital vision and is on the back of a digital wave in which a few players need to play a key role on the connectivity side and i think our company is performing and doing a fabulous job is one of the premier's. from all data we can see from the market, we are seen as a very strong formidable player in this space and in the next five to seven years over a billion people will have smartphones and all sorts of services. >> no doubt but that does not answer my specific question on competition. is there anything you see or plans on finance? >> there is nothing being done by any player we are not doing anything that nobody else is doing, everybody is doing everything. see netflix, see amazon prime, see disney, everything is there. >> so you are not going to stay out of the content game.

>> it is not really our business. there are other companies doing it. >> same group ok so fair enough. >> petroleum -- some digital connectivity. >> enterprises founder and chairman speaking with bloomberg. bloomberg has also learned that 3m has tentatively agreed to pay more than $5.5 billion to resolve lawsuits claiming it sold defective earplugs to the u.s. military. bloomberg's su keenan the details. these are astrological numbers -- astronomical numbers. but it could have actually been larger. sue: much larger these are 300,000 or more lawsuits that have been brought over the past decade and analysts such as barclays estimate there could be an $8 billion liability. other analysts have said the liability could be up to 9.5 billion. to paraphrase one expert in the

product liability case says it sounds like 3m negotiated a pretty good deal for themselves. u.s. servicemen have alleged in these lawsuits that 3m knew its earplugs, which it sold to the u.s. military, or too short to work effectively that it failed to warn the government or its users or take steps to use it. the source is telling us that there is now a tentative packed that would resolve all of the 300,000 plus lawsuits which a district court has consolidated into one case. it would also cut the liability almost in half in terms of the roughly more than 5.5 billion settlement number and it would be a good decision for 3m. according to the sources, it now has to take to the board to approve this tentative agreement because it has lost 10 out of 16 trials that have gone forward so far.

for example in the most recent florida case in 2022 3m was ordered to pay 77 point $5 million to a u.s. army vet over his hearing loss due to their faulty earplugs. the servicemen tested weapons over a four-year period, the earplugs did not work and he developed significant hearing loss. and a condition called tendinitis, a buzzing in his ears. a very big settlement for a very big issue that has weighed on the company for effectively a decade. haidi: 3m is no stranger to this kind of litigation. su: no stranger. they are not commenting on the potential settlement but they did have a similar sentiment -- settlement back in 2018 after a whistleblower lawsuit which resulted in the justice department bringing civil allegations. they paid 9.1 million to settle allegations that they had failed

previously to warn the military about known defects. additionally there are thousands of lawsuits currently facing the company which is known for its duct tape and scotch tape and post it notes. over p fas otherwise known as forever chemicals. these are cases that can cause two to three times more to resolve. financial analysts say and 3m has already agreed to pay as much as 12.5 billion to clean up draining water supplies across the u.s. that are tainted with these substances. lastly i should point out the 3m initially tried to remove any liability for the earplugs by putting one of its hearing aids into bankruptcy but that strategy was rejected by a judge in june and may well have led to what people close to the matter say is a settlement that would result most likely in 3m paying out the amount of money that it has agreed to.

over a five-year period. haidi: bloomberg su keenan there with the latest on 3m and taking a look at stocks we are watching when trade opens up in korea, japan and australia in about seven minutes. we are still really waiting for fortescue to announce latest earnings. there have been a slew of management announcements, dino will be taking over as ceo. the prior was only there for six months. we are also watching suppliers of airplane components and tech, they advise on news that boeing is prepared to restart delivery on jets to the chinese market. mitsubishi heavy industries as well as korea aerospace could see a move. japanese ev related firms are also on the radar. -- reporting that the government will double its target when it comes to charging stations nationwide by 2030 to 300,000 stations. union workers are voting to go

on strike the first time in five years in an effort to boost wages. shery: take a look at how we are setting up for market opens as we await stocks to trade. we are looking at u.s. futures now extending gains of 2/10 of 1%, earning the asian monday session. after stocks rose last week it was actually the first weekly gain, we have seen optimism that perhaps chair powell sounded a little more dovish in terms of his optimism about disinflation. but there has still been a lack of conviction, the s&p 500 only rose six days this entire month. take a look at kiwi stocks, down for a third consecutive session and extending those declines from last week. as we are seeing futures on the nikkei pointing higher. haidi: take a look at bonds as well, we did see that decline in treasuries as well before the key events of last week. we had that -- in australian

bonds as well, a lot more of a measured reaction as we see market still readjusting when it comes to the high rates merger that we heard from jackson hole. traders are preparing for a pretty cautious start to the week, u.s. and european policymakers at the economic symposium really signaling that rates would likely stay higher. we are also seeing the aussie dollar and the yen little changed this morning. fred: in the next -- haidi: china is now in a balance sheet recession plus more how china can salvage its faltering economy with the council on foreign relations. market opens our next, this is bloomberg. ♪

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shery: this is daybreak asia we are counting down to asia's

major market opens and we are just getting or two would numbers crossing bloomberg the full net income missing estimates for the full year. the average analyst estimate was a little bit stronger there, net income at 4.8 billion dollars the estimate was for 5.5, 7 billion revenue coming in at 16.8 billion there. a little bit higher than expectations. so much of the news this morning has been on the management changes, fiona hick resigning after a brief tenure to be replaced. we will continue to watch some of these broader implications particularly as we know this is certainly one australian company that has big exposure to what happens to the chinese economy. annabelle: a slew of measures being announced over the weekend to try to prop it up but let's get to the opens now because we have japan, south korea and australia coming online this morning. and the start of trading for cash treasuries fortescue is not trading just yet because we have a staggered start for australia so still about five or six minutes away from seeing live pricing for that let's take a

look at what is happening in japan because asian stocks -- you could get a boost in what happened in that wall street session we had the best week for the s&p 500 since july. but we did have those headlines coming out of jackson hole at the weekend as well for investors to be passing in or over. in terms of the direction for japan, we heard from the boj governor and he back to the easy policy settings for now. that is given the below target inflation. he also spoke about china's economic slowdown calling that a disappointment. we did see some reaction in the japanese yen off that this morning. it is looking a little weaker against the greenback, trading close to that 147 level. japanese stocks coming online to the upside. let's take it what is happening in korea as well because we have tried -- traders racing for a volatile week after we did here from jay powell signaling that rates are probably going to be

staying higher for longer. that is in place, we see the cause duct doing a little better than the broader kospi so tech stocks want to be watching throughout the session. we are seeing the korean won fairly steady across the dollar as we get trading underway but just looking a little bit firmer. the other focus is what is happening in china. you mentioned that traders are going to be very sensitive to the slowdown so we did have industrial profits weakening over the weekend but also a slew of measures to try to prop up market sentiment. for instance beijing -- the stamp trades in pledging to slow the pace of ipos. other ones in pace today whether that brings more investor inflows back but let's take a look at australia because we have the asx coming online and start of the day, we are looking fairly muted but as i said a late start for fortescue. at one stock we will be looking closely given those earnings

that just came out in management changes, very unexpected. haidi: very dramatic morning when it comes to fortescue. let's bring our next guest who says there is more downside than upside when it comes to rates, head of asia research. mark, if you take a look at the global economy more holistically how much of that is because of what is going on in china for you? mark: a lot of it is what is going on in china. i think it is a balance sheet recession which is a common thing to say now but i agree with that. i remember, was it in 2021 warren buffett that about covid, it is very unpredictable. he was right. we had such wildly divergent outcomes, in the u.s. they had a lot of stimulus and very little mobility restrictions and in china they had virtually no stimulus and a lot restrictions. the longest of course in the toughest in the world.

coming out of that i think there is real posttraumatic stress among the population there, business community as well as consumers. if you add onto that what is happening in their property sector, where it kind of reminds me of the asian crisis. instead of quickly resolving things and companies going bankrupt, their assets being taken over by people who can make them productive again, in asian crisis we just had a long drawn out process where even to this day on bloomberg you can see bangkok land bonds that matured in 2003 still have a quote. i get the feeling china is heading down that road of not a speedy resolution to this problem in their property sector and putting the two together, yes this major economy is going to be deflationary for the world which is positive for interest rates. haidi: we speak about that as

though it is -- we are seeing this veritable smorgasbord of policy measures and incentives, can any of that help or you think that deflationary mindset is too far in added at this point? mark: i am an optimist by nature but i am afraid i will have to take the latter part of your question as the probable outcome. i think it is too deeply embedded and i don't think these measures are certainly not sufficient to get the whole ball rolling again. from everything i read they don't intend to. they feel that now is the time to resolve the imbalances in the economy. it's the biggest one being the property sector and to make it more of an economy driven by the central government with a focus on investing in the things that they want to invest in it like renewable energy and semi conductors, those are all good

but it does mean the consumer is the -- the engine of the economy will continue to decelerate and become less important. shery: a whole different story here in the u.s. which is why you have the fed it signaling higher for longer and we have guilds spiking on that narrative but shares rising, even growth stocks gaining ground. what do you make of this? mark: i think that jackson hole, sometimes it is a big deal like last year but most of the time it is not a big deal and i think the outcome of it, we don't know anymore than we did before. it was this standard good cop bad cop routine from the federal reserve and you are right, they did say that two months of good data is not enough. we're going to keep rates high until we have seen more good data but on the other hand -- jay powell said they will proceed carefully. he use those words twice in his speech so i put it together and

i think that seasonally, september on average is one of the month that is down. if you look back 100 years it is down on average .7% so it would not surprise me if we trend lower because that is what we usually do in september. but i would reiterate i think there is more downside than upside to rates and so on that basis side i don't want to get bearish on stocks and certainly not bearish on bonds, and's -- certainly investment grade bonds we get about a 5.5 or 6% yield now. shery: what about the support coming from all of the excitement around in india and ai and who could be the winners in asian assets? mark: with asia i don't have a good answer. but i noticed looking at bloomberg over the weekend there is now 55 buys, for holds and no cell on that stock in the

average analyst target price is 40% higher than where it is now so everybody loves it. and people make lots of analogies with the past, one that i have seen a lot on twitter over the weekend was cisco. cisco was the poster child of the broadband in the late 90's because if we wanted to survive we cannot use modems anymore. we would not be competitive so we all needed broadband and they had the hardware. well there price to sales ratio got above 60 times and nvidia is about 35 times price sales to date so it could go a lot higher but our view is who is going to buy their gpu's now? it is going to be more enterprises, universities, that kind of thing. less the hyper scalars and if those companies can't monetize these gpu's than it could be a

bit of a boon to story. in other words they won't be the magic pill there seems to be right now by the industry. haidi: when you take a look at some of the alternatives to china, we saw earlier in the year a lot of close going into japan. india now seems to be the darling. mark: we like both. in japan the story is basically buybacks. they really are happening and they try to get them happening 10 years ago and it never really took off. i think because his popularity waned after he change the constitution in 2014. he was not able to implement the corporate forms he wanted to. it is happening now and then the yen is probably the most competitive currency in the world. it is bizarrely undervalued, it cannot stay that way forever but as long as it does it makes japan credibly attractive. in india i think the story in a nutshell is i think the middle class will get better -- bigger and as it does they will invest

in stocks. they have something similar to 401(k)s called systemic investment plans. i think there is over 600 million systemic investment plan accounts now and those are just going to continue to go up so the middle class in india is becoming invested in the equity market and that is the best possible thing when you're middle class is invested in your own equity market because it tends to bring about very high returns on equity. companies become better run. shery: mark matthews head of asia research could have you with us. let's get back to bell to see what is moving in the markets. annabelle: thank you, the point is we are about 10 minutes into the session so far for japan and korea and just taking a look at one of the sectors in focus for us. these are some of the boeing linked stocks in japan and korea. so supplies of airline components and technology. the news here is that boeing could be preparing to restart

deliveries of the 737 max jet to china. if that does take lace it would be the first time in four years so it would be quite a breakthrough and certainly could also help bolster the plane makers come back because it was hit by a string of crises with crashes. the initial handover expected to take place within a few weeks and that is according to people familiar with the matter. one it sector we are focusing in on but let's change on it now a group of firms in focus is japanese players. this is throughout the supply chain from ev makers like toyota down to ev battery makers like panasonic and also ev modem makers and supplies into tesla. we are tracking that this morning. these are gaining across the board although we are seeing the nikkei 225 in the green but we do have local media reporting with the government in japan is going to be doubling its target for the number of the charging stations nationwide by 2030 so

that figure will be lifted to 300,000. fortescue, also tracking that stock because it is coming online just about 2% of the downside here. we have that company earlier reporting earnings and its full-year net income missing estimates and we also saw this yellow yacht a heck resigning after a brief tenure at the company. just appointed at the end of last year and already stepping down. that stock down 2.5% after a four-year profit as an a ceo change. haidi: coming up shares in property developer evergrande is set to reopen and start trading today after the company reports a $4.5 billion loss. we have the latest on china's move to prop up market confidence, next. is bloomberg. ♪

haidi: china is lowering its stock trading stamp duty for the first time in 15 years and pledging to slow the pace of ipos. this is authorities tried to boost market sentiment. our chief north asia correspondent stephen engle is a hong kong. we are already seeing the market reaction with 10 year bond

yields rising about five basis points in china. with these latest stocks down duty cut. what exactly are they doing in this string of moves to support the economy? stephen: absolutely in the stock market is seen as a proxy to the overall economy weakening. weakening the sentiment and the fundamentals and the latest data not very encouraging. domestic households, they have seen their paper money or their wealth on paper diminished because of the property market rout. the trustee faults we have seen an essentially the overall weaker consumer sentiment and foreign investors have sold china equities on a net basis for 13 consecutive session through wednesday the longest streak ever. you have to boost sentiment somehow in the last time daugherty's did cut the stamp duty on stock trading was 15 years ago in 2008. what they are doing here is there going to be cutting those transaction costs and the levees

on stock trading from 0.1% down to 0.5% as of today in a move that the ministry of finance said is designed to invigorate capital markets and boost investor confidence. that was from the finance ministry separately from the securities regulator the csrc. they are going to at least put a temporary moratorium on new initial public offerings citing recent market conditions as a rationale for slowing those new ipo issuances without giving details on how it would do so. obviously they don't necessarily want to send new shares to market and have them plummet. that would be bad for sentiment but also it saps up a lot of these issuances, could potentially sop up liquidity for other stocks and potentially in a falling market to press it further. we will have to get more clarity on how more long that moratorium might last but more moves to try

to boost not only the markets but confidence. if you have seen the stock charts i have made, the csi 300 has lost nearly 8% since the beginning of this month, it is down 12% since its year high on january 30 and it's on the back of back-to-back yearly losses in the market. it is down 36% since february 2021. that was the pandemic high and it has been down a it of its value since then. haidi: we had industrial profits over the weekend as well that the missionary overhang is a big risk isn't it? stephen: absolutely. that is one of the big overhangs on the market. elation though these numbers were a little bit better than june, still it shows a continued deceleration in growth and obviously as a proxy to that growth of profits at those industrial giants in china.

saw industrial profits in july fall six point 7% year-over-year, it was down 8.3% in june. does that signal we have hit the bottom? probably not yet until we see a little more of a trend because through the first seven months of this year industrial profits year-over-year basis are down 15.5%. using a little bit from a year ago levels at 60 8% but clearly this is an economy and economic recovery is spidery and it a continued deceleration in those industrial profits. it likely impacted in july by the heavy rain seen across china. there was flooding in that impacted some of the prophets and the output that these factories could do but still, the deceleration trend is still going. haidi: our chief north asia correspondent stephen engle with the details and of course the property sector and its effect has such a big part of what happens in china. whichever evergrande -- china

evergrande group is poised to resume trading on monday after a 17 month hold coming after a disclosed 17.5 billion dollar loss. let's get more details from felix who is joining us from hong kong. first of all what has led up to this, the key takeaways as you go through evergrande's earnings? felix: as you mentioned evergrande reported first-half net losses of 33,000,000,001 and that is narrowing from the previous year because the improvement in the sales of property. overall as to the losses in the past two years, if we talk about the total liabilities it is still at a very high level with nearly 2.4 trillion one. over on the shares is going to reach some trading today and this is a key step for the companies to keep these listing status in hong kong because if they continue to suspend their

share trading they may add some terms and their restructuring proposal. shery: so what does this mean for evergrande in the broader industry? felix: of course it would give more detail to creditors because they are going for the restructuring proposal in the coming days and of course more developers just like country garden and bernanke are going to report earnings this week. china last week just announced a housing support measure to support the housing industry by letting more home binders -- buyers enjoy a payment ratio. it may take some time for us to see these policies to support the property sectors but meanwhile we are seeing massive developers reporting that losses so it may take some time for us to see the property status recover.

shery: our breaking news editor felix there and we do have breaking news on x pong we are now hearing that they will be issuing consideration shares to dd at four hong kong cents. -- 64 hong kong dollars each saying that the total maximum consideration would be 5800 35 million hong kong dollars. the issue of consideration shares and we are getting a little more clarification when it comes to the acquisition of their smart auto development business. again this is on x pong and 80 and the total maximum consideration of the acquisition would be 5800 35 million hong kong dollars. that would be 5.8 billion hong kong dollars. that shall be satisfied in class a ordinary shares as well as the

sop milestone to be achieved. we will have more details on the latest but basically it is that they will be buying the smart auto development business for a 744 million u.s. dollars. we have more to come on daybreak asia, this is bloomberg. ♪

haidi: european central bank president christine lagarde says the central bank is dealing with shifts in labor, energy and geopolitics. she spoke to us at jackson hole and discussed how these changes might impact the future of rate policy. >> we are facing major shifts, i will mention three. one is there is a complete change in the labor market.

there is a complete change in the energy future we are facing. and there is a complete shift in how geopolitical forces organize our economies. not to mention climate change impacts on our economies, our life and the imperative nests -- imperative ms. it becomes as we have seen turning the whole summer. for instance in terms of major heat waves, major hurricanes and so on and so forth. you have got these three key shifts in the background of climate change and we need to address each and every one of these three. which we inherited from the pandemic, which we inherited from the major supply chain disruptions, which we inherited from the geopolitical tensions that we see developing between the united states, europe and japan and many other countries around the world in particular

china. >> i was talking to a neighbor at a frankfurt, i want to take the 60,000 foot nature of the speech. i cannot imagine -- giving the speech it was original to you but if i look to clarity, flexibility, humility -- your backdrop out years is exactly the same as your backdrop on september 16 was with -- which was the original structure you had which was to pick two nations, with germany and attention with portugal as well. how do you get to these lofty goals given the fractious original nature of the ecb? >> i would disagree with that. i think the ecb in the way it has been constructed is intended for collaboration, for controversies, for debate, but at the end of the day for large consensus. this is how i have been operating at the ecb.

the fact that monetary policy is really european monetary policy is a plus. we are bound by the same currency, the euro. we exchange the same bank notes be digitally one day. haidi: ecb president christine lagarde speaking exclusively to tom keene. we have more to come on daybreak asia, this is bloomberg. ♪ i don't want you to move. i'm gonna miss you so much. you realize we'll have internet waiting for us at the new place, right? oh, we know. we just like making a scene. transferring your services has never been easier. get connected on the day of your move with the xfinity app. can i sleep over at your new place? can katie sleep over tonight? sure, honey!

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higher bezawada. he was among those speaking from jackson hole on friday and essentially saying that the inflation story in japan, because we've just been really monitoring that perhaps more of a weakening trend, at least on the headline level, really telling us that it does back the case for the boj to stick with its easy policy settings. so that was the message that ada had from jackson hole on friday. in terms of what else we're watching, it is currencies this morning trading in a fairly narrow range against against the greenback. not too many moves really standing out here. but of course, tracking what's happening in the offshore yuan. given that we did see the pboc or rather china's regulators

pushing through some different market reforms on sunday. so essentially cutting stamp duty for stock trades, lowering margin requirements as well, slowing the ipo process. these are just some of the measures that regulators announced, which is why we're also keeping an eye on what's happening with the china ten year yield. just ticking a little bit higher as we get trading underway. so perhaps a reaction to some of those measures that came through in terms of what else we're seeing today. while the focus is most certainly on fortescue, that is the stock that is standing out to us. so we saw a full year profit miss on what economists had been expecting, but also a very sudden change at the top because the ceo, fiona hicks, stepping down, a new ceo named as her replacement. and we are seeing that stock under pressure today, but very sensitive of course, to what's been going on in china's economy sherry. yeah, but let's actually delve into what's happening in china's economy, especially with beijing's measures to boost the recovery there. here's what some of our guests

on bloomberg tv had to say about those measures. i'm expecting that there should be some acceleration of stimulus, both monetary policy and fiscal policy in china that should help the economy. if you look at the canvas of economic picture, it looks pretty bad and then we're not seeing enough policy stimulus. we're not seeing details of policy stimulus with a number that we can work with. so > so what the government needs to do is some amount of stimulus. but they need to reinvigorate of exactech confidence. >> i am encouraged by what i am

seeing, but i am not entirely convinced we are out of the woods. we will continue to what that closely. shery: let's bring in the fellow for china studies at the council on foreign relations where she focuses on china's political economy. great to have you with us. we have seen these measures from beijing whether it is to support the broader recovery with monetary policy easing, a little bit of fiscal measures in trying to ease the property restrictions, not to mention now trying to shore up investor confidence in the stock market as well. why aren't any of these efforts working? zoe: thank you for having me. a lot of these measures so far have not been able to boost investor or market confidence. partly because of the four structural elements or structural process emphasized before which is demographics, decoupling, and demand. shery: tell us a bit about the

demand. are you talking specifically about household consumption? and what else does beijing need to do to shore up confidence there? zoe: yes indeed, i am specifically talking about household consumption here. if you look at the oecd or global average in terms of household consumption as a percentage of gdp, the global averages about 60%. china has been barely around 40%. since president xi jinping came to power, household consumption growth has been stagnated. the reason comes down to two aspects. one is deteriorating household balance sheets, and the second part is really income growth slowdown. paul: you put forth the argument that the four days decoupling,

debt as well as demand will be the four drugs. i look at each one of those factors are there any easy answers or solutions to any of them. most of those will need longer-term structural readjustments to the economy. to that point, are there any policy measures that can steer the ship around at this point? zoe: there is no easy way to steer the ship the other way around. perhaps what the chinese government needs to focus on is really to, on the one hand, try to stabilize employment, the other aspect, to ease consumer credit environment. in order to increase employment in the current environment, it needs to further attract international investment and reduce policy uncertainties. on the other hand, try to boost small and medium-sized enterprises, especially in the private sector.

the politics so far perhaps is the primary obstacle for the chinese government to really stimulate household consumption. haidi: do they need to tackle the balance sheet? how close are they to the default, if some of these measures are not taken? zoe: the road that has not been taken right now really is direct payment, or stimulus to households. from a historical perspective, there hasn't really been any precedent for the chinese government to do that. so i would say, perhaps the chinese government, the most likely road that the chinese

government is going to do is to further lower the mortgage rate and attempt to boost the property market. but that is not necessarily the right move to boost household consumption. the whole idea really is to relax government control on the market. but so far, the whole financial system is built around the government policies and directives, rather than having the market decide production. so from that perspective, far, there is no easy way forward. shery: you mentioned decoupling. are you talking about u.s.-china geopolitical tensions because we now have secretary raimondo in beijing and i wonder what all the recent meetings will do in helping those tensions? zoe: secretary raimondo's visit

to china actually further exacerbated this unbalanced bilateral visit, because she will be the fourth cabinet member from the biden administration to visit china, whereas so far, no chinese high-level officials have visited the united states yet. it gives her a lot of pressure in terms of what she can achieve during her trip. but i think, unlike previous visits, so far, the chinese government has sent out some positive narratives, despite the better administration which has also relocked certain export controls on a number of chinese companies. but again, i would say that the incentives and priorities on both sides are different. china probably is very much interested in for the relaxed export controls, especially in

--. whereas none of those things can be decided by secretary raimondo. haidi: your book argues that we should be paying far greater focus when it comes to safe, the foreign-exchange regulator. i wonder your thoughts on what you has been doing. it has been displacing other emerging market currencies. zoe: i think you are right. beijing's intention is really not about dethroning the color, but really, the intention is about trying to reduce its economic or geo-economic vulnerabilities in an existing system dominated by the u.s. dollar, which basically means in an extreme geopolitical

condition such as a war, with regard to taiwan, beijing would want access to the global markets through the renminbi -denominated financial system in case u.s. sanctions capfinancial's additions -- in case u.s. sanctions that chinese financial institutions out of the system. haidi: i am glad you were able to join us, fellow for china studies at the council on foreign relations. we have just been talking about decoupling. we look at how it could lead to more expensive iphones. the discussion is up next. this is bloomberg. ♪

shery: apple's major suppliers list in 2022 shows that 80% of its manufacturing partners have a footprint in china, but as a company six to diversify its supply chains, that is set to change and it could mean higher prices for consumers. for more on today's big take, we bring in our next guest who leads our asia tech coverage. what does the supply list show on the company's ongoing supply-chain shift? debby: it is very clear that there had been countries like india and vietnam who have made

gains as apple looks to manufacture outside of china. one example is back in 2012 when apple first released its suppliers list, there was no manufacturer in india back, now it has more than a dozen. that is definitely a big shift. also the fact that india now is making apple's iconic iphones, that also shows that apple is aggressively seeking to diversify its manufacturing hub. it has seen its workforce in the electronics sector in india quadruple since 2012 to over one million this year. shery: china has been the heart of the supply chain for such a long time. about 80% of these partners have a footprint there.

will that change more? debby: while apple is bringing manufacturers say china, some of its production capacity outside of china, it certainly does not mean china has a status as the world's factory is collapsing or changing overnight. still, we see the bulk of iphones are still being made in central chinese cities, what we call a full city. it is hard for apple to change that status quo overnight. it will need time for it to build up significant capacity elsewhere. haidi: bloomberg's debby wu there with the latest. and of course we are still waiting for the iphone announcement from in the next

couple of weeks or so. plenty more to come here on "daybreak: asia." this is bloomberg. ♪ i came from a low-income family that was struggling. you see how hard life can get. gcu became a part of my life because i don't want my family to fall back into that. i never thought education would take me this far. i'm still young. i still have a lot to do in my life, and just want to get things done the way i want with a good education under me. i'm stacy, and grand canyon university helped me find my purpose. ♪

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 haidi: some headlines we are following around the world. russian investigators have

confirmed that the death of the wagner mercenary group chief yevgeniy prigozhin, in last week's plane crash -- dna tests showed that all passenger and crew listed as the on board were killed when the private jet went down, including prigozhin. three u.s. marines were killed and five are in critical condition, following a military aircraft crash off the coast of australia's northern territory. the osprey plane went down when performing drills with military personnel from other nations. that because of the crash is under investigation. a storm northeast of the philippines has intensified into a super typhoon. the national weather bureau says it will likely remain in that category until it makes landfall in taiwan on wednesday or thursday. flooding and landslides are possible in several provinces, with sea voyages suspended in others.

shery: philippines is born market that is closed today due to a national hero's day. look at the trading session today, we are seeing a bit of upside after stocks rose last week, the first weekly gain in four. we have seen chair powell saying that the fed is prepared to raise rates further if appropriate. other policymakers also speaking at jackson hole with the usual hawkish phrases, but between the lines perhaps, investors are more focused on chair powell's optimism about disinformation. we will continue to watch if we can continue with this upside in asia trading, after we saw the s&p 500 rising just six days this month. there is a bit of lack of conviction when it comes to u.s. markets in the month of august. gsw "bloomberg studio 1.0 is looking to -- jsw group

chairman jindal said that he wants india to counter u.s. tariffs and u.s. carbon taxes with a similar levy. >> so i hope that india will also put nine tariff barriers or barriers for the importation of steel -- >> specifically chinese steel -- >> any steel. where the state is supporting the industry. >> speaking of china, how do you view the recovery in the chinese economy right now. most people call it rapid,, wears demand has been fairly strong through the last three years. can you give us a quick overview of how you are looking at demand conditions outside india since jsw exports so much steel? >> i think china, although you read that it is slowing down, interest rates have been brought down and the real estate market is going down -- our economy is going down, but in reality, as

far as steel is concerned, we don't see that kind of action or reaction in china. steel production still remains very elevated. they produce over 50% of the whole world's steel production. and they are being consumed in china. the experts have gone up a little bit, but not to that extent that the domestic demand which would reflect that domestic demand has come down. that is not the case. europe, on the other hand, has slowed down and there are clear signs that europe is struggling at the moment. >> and india? >> india is very strong. in the last two years, india has been very strong and i think going forward, india will remain strong because of the government spend on infrastructure is very high. so india remains very strong. since 2004, 2005, i haven't seen

india as strong as it is now. >> let me ask you what your acquisition of the steelmaking call assets, if i could put it that way, i know you said you are interested. he said your interest has only increased in the last several months. where are you in that transaction? >> it is a very high quality metallurgical coal which we need in india for steelmaking. unfortunately in india, we don't have high-quality coking coal. we have it at low quality, and that is very limited. our need for it is very high. it is a strategic asset and tool that we need for making steel. therefore, tech is getting divested by tech resources. we as an indian steel company, we believe this would be a very strategic trade for us.

therefore, we are taking a significant stake in the company? >> how much. >> between 20% and 40%. >> you are looking to purchase 20% to 40%, and there will be other players in the consortium? >> there are other steel strategic investors from japan, from korea, because these countries, we don't have coking coal. >> so they are joining hands with you to purchase these assets. >> they are taking a stick also in teck resources how. >> much is that going to cost you, the 20% to 40%? >> total acquisition cost is $8 billion. >> ok. when do you expect this transaction to close? >> we don't know. it is going on. there are many things to be put in place. it should happen within a month. >> within the month? that is soon enough.

[laughter] haidi: jsw group chairman sajjan jindal speaking to bloomberg in daily. you can get the latest updates on india with bloomberg's monica -- he by subscribing there. take a look at the first trading day of the week as investors are processing the guidance around jackson hole from policymakers, and also more dire data and a few more incremental market-student measures or at least intended to be market-boosting measures overnight. stocks seeing modest gains, probably the most from japanese equities, up just over 1% permit we'll u.s. equities staging modest gains in the indian session. jay powell saying the federal proceed carefully on whether to raise rates again. overall the policy signal is that it will stay tighter for longer. we are seeing some more muted

gains out of korea, up 0.7 percent. austria is just shy of 0.5% there as well. kiwi stocks are the underperformer. not seeing a great deal of action in the currency. shery: perhaps a bit of upside for aussie dollar's and kiwi dollar's, seeing gains against the u.s. dollar. this after the kiwi dollar already fell on friday and we saw two weeks of losses against the greenback. this is the dollar was pretty strong. we're talking three sessions of gains already. everything on the other side of that trade was under pressure. but we are seeing resilience in today's session, especially when it comes to the korean won, which is trading at the 1320 level. the japanese yen, though, holding steady at the moment at the 146 level against the u.s. dollar. still to come, a look at how

bond and fx markets are faring after jay powell signaled rates could stay high and may raise even further. we will speak to aletheia capital about their outlook for china's government, as the country continues to struggle with the property crisis, and lackluster growth. that is it from "daybreak: asia." our markets coverage continues as we look ahead to the start of trade in hong kong commission jay and shenzen. standby for "bloomberg markets: china open." this is bloomberg. ♪

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david: good monday morning. it is