shery: you are watching daybreak asia. haidi: we are counting down to the major market opens. stec's that stocks are said to follow the market. the yen is weakening. the u.s. commerce secretary says trade can stabilize relations with china but national security remains a redline. shery: take a look at u.s. futures. we are seeing stocks and bonds rising. jackson hole is heading for more

eco-data, not to mention the price index. we're trying to figure out how policymakers blend in. we saw optimism today with chinese adr. the dollar was pretty flat. wti popped above it's the summer low in trading. annabelle: i saw the volatility tells us perhaps a sigh of relief and it's time to relax. futures are mostly pointing

higher. we are watching the japanese yen given the yield yet. you mentioned the moves in china and that is the big focus yesterday. it was about cuts on stock purchases, slowing ipo processes to try and boost market sentiment. take a look at the moves yesterday, up at the most 5.5%. put that in context, this is a rare move. we have only seen it to other times since 2004. to pair those gains throughout the session, our colleagues are

saying this does indicate perhaps perhaps the china needs to pull out measures to spark investor interest. foreigners continue to pull money out of the mainland session. we had local media reporting china may boost adr. haidi: of course, we are's watching bond markets closely as we see the surgeon yields drawing in global investors. creating some headwinds for equity markets. treasury options, the highest since before 2008, a reflection on the impact of for the rate hikes. we are seeing federal deficits

increasing the supply of treasuries. this five-year notes are the highest since before the financial crisis with that option and focus as well with interest being paid at a rate of 5%. the most since 2006. let's get more on treasuries rescuing the rest of what investors are looking at. as you say, bonds are in the driving seat. how do you see this playing out? >> if we continue to see yields move higher and bonds selloff, you have to be careful. the bond moves indicate.

a return premium on people realizing. we think there will be continued volatility. when you take a look at some truly tech nai. where you actually find the value and opportunity going

forward? when you see the price action has recently as tonight, still trading below levels. for us, we are not calling in to actual earnings or revenue growth but we think positioning is behind. for us, we are underway for that reason.

certain opportunities are merging. many of them have pulled back and are consolidating and be think generally sticking with equities mix the most sense at this point in time. shery: the ai narrative, does that extend to asia as well? >> suffering with the malaise with this extreme amount of bearishness. technology stocks would not be helpful, but given the extreme.

if we were to see a kickstart in china. a large interest rate in china, were talking about reigniting the economy, obviously taken positively by equity and technology stocks. shery: more pressure for the chinese yuan that would lead the u.s. dollar to be stronger. >> that is correct. between the u.s. and china straits, we believe if the

ultimate solution that china is going through. at some point, stop trying to keep the stable currency and try to depreciate more. stable would be able to got interest rates far more significantly. we are not at that point yet because policymakers are trying to make the position stable. they eventually will look forward. shery: we have seen weakness in the japanese yen and more optimism, we see more upside for

japanese assets. like you said, combined with improving governance creates a positive narrative around japanese equities that we have not seen for a long time. keep an eye on weakness. becomes a competitor and china moves towards significant currency devaluation. >> good to have you with us, portfolio manager. more to come.

the latest from a visit to beijing, coming up next. this is bloomberg. ♪

shery: the fourth u.s. cabinet official to business since sure. you could see some trade promotion. what stood out to you? >> with the commerce secretary saying trade and transparency are the key, it's a no doubt comment.

this is where they can reach commonality if you will. she says the plan or commercial relationship done right can stabilize the political relationship. >> we agreed to establish new commercial issues, formal working group will involve u.s. and chinese government officials , very important private sector representatives on trade and investment issues to advance u.s. commercial interests in china. >> she talked for more than four hours.

they will meet at least once a year, there are positive steps. the big issue is they have talked ahead of the trip and they would like to see better dialogue and avenues to send project into china. she expressed the belief that the overwhelming majority of u.s. products involved in trade are not related to national security. just a year ago we had expert controls being a new strategic asset.

such as advanced logic and memberships. essentially, beijing felt felt -- monday, she told the counterpart that the u.s. has no intention to hinder economic process. that being said. she i'm quoting here exactly. we are not compromising on matters of national security. back to you guys. haidi: you can get a round up in today's edition of daybreak. it's also available on the bloomberg anywhere. this is bloomberg.

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shery: bloomberg has learned goldman sachs has agreed to sell a business. su keenan joins us now, further signs of goldman's retreat from retail. >> much has been written and said about the ill-fated foray, and this is a sign of the bank retrenching, goldman striking a deal to sell the investment advisory business that stemmed from its purchase of united

capital. they are selling it to a wealth management firm. the uploading comes just four years after goldman acquired it and signals they are moving away from consumer banking and back towards servicing money of the uber rich. again, this was a purchase and 2019 to reach the affluent market that was ancillary to consumer moves, this was the millionaire next door. it was sort of rich people, goldman did not reveal the price of the sale but expects to reorganize a gain in sharp contrast to the other sale on

the way, we are told divestment of an installment lender is being sold at a steep discount that underscores the retrenchment underway. haidi: what is creative planning getting from this? >> more assets under management, the expansion of an already existing relationship with goldman. several of these books were written with tony robbins who was once the chief of investment psychology. they told bloomberg earlier that expanding the partnership is a natural strategic fit. shery: asia's richest man has

elevated the role of his children. the board met and recommended into the board of investors. i can say they earned their stripes the dedication, commitment and hard work. haidi: calling these changes in emotional moment. annabelle: we know he is someone who is focused on developing children into key leadership roles, we saw three years ago he handed out big roles in key divisions and energy, retail and digital services. the most recent are going to be

elevated to the board as non- executive directors. his wife is stepping down and focusing more on charitable endeavors. but why these changes now? this is about succession planning, he says he will be staying in position for the next five years. helping his children take on bigger roles. his father passed away in 2002, he died without a will and that spark and that was halted after

his mother stepped into the fray. it's a personal experience. the from the leadership, what else came on? annabelle: a lot of the focus was on the transition of making it into renewables in particular. that should help them reach cost targets. alliance says it's setting up a gigafactory. that should take place by 2026.

they are trying to leverage capabilities. >> reliance closing down is taking place while the shareholder meeting is underway. continued after the close of markets. we saw reliance down 1%. it's important to know in the context broadly, they were higher.

perhaps we will see more investor reaction today given it was underway. ♪

shery: this is we have seen steady growth in terms of demand for automakers but perhaps higher than economist the job ms. that the previous month. >> sticking with labor markets, a possible strike marcus evans also.

>> workers are on strike. lance voted in favor of industrial action, it does not mean it's going to happen. projects. negotiations are ongoing. shery: impact? >> we saw some impact right away , touch not for gas futures spiking so probably some more volatility ahead. the good news is, maybe we are at the end of the roller coaster

ride. chevron accounts for about 5% of global supply. also, europe does not import gas directly from australia, however asia does. there are mitigating factors, european stockpiles are at a season-high, weak demand out of china. there are some reasons to think there will be volatility but maybe not quite as pronounced. haidi: watching gas prices. take a look at the set up in the broader markets. 3/10 of 1% higher. we are watching a speech by the incoming rba governor.

more broadly across the rest of the region, asian stocks are poised to follow this broadly higher. the s&p notching back-to-back gains. when it comes to the cloud, if we are talking about a cyclical

slowdown if there is more ammunition to apply. shery: shaky competences there were getting closer and closer. the week demand, issue, deflation. even cpi expectations have been cut. we are expecting growth to come in at 1.9% from about 2% expectations by economists. we have seen despite measures on

the monetary side, bank loans plunging. haidi: expectations are growing in terms of needing to do more from the pboc. take a look at interest-rate forecasts. most economists expect no change when it comes to the one-year lending rate as we get into the end of the third quarter, but we could see more modes to the point of rrr cuts. just this morning we had a front page saying the central big could consider cutting for commercial lenders in the fourth quarter of this year. the recent tightening of conditions in domestic money markets despite a cutting rates, remember cuts were more significant than expected, they are seeing potentially being raised in bonds is having an

outsized effect. you can bring a horse to water. sentiment is so bad for households and businesses at the moment, the question is whether there will be an uptake. despite the fact, we have seen a slew. we think skeptical about the economic recovery. we have not seen anything that might resemble and we have gotten used to seeing this from beijing. the risk of financial instability is big for china so policymakers are more cautious. we are discussing much more on daybreak asia. this is bloomberg.

my cpa told me i wouldn't qualify for the erc tax refund, so i called innovation refunds. their team of independent tax attorneys will work with your cpa to determine if your company is eligible. [whip sound] take the first step to see if your small business qualifies. haidi: the governor the garage spoke to us.

>> this is in august. in july, demand was 9% more than last year. in the first quarter which means april and june, the demand in 2022, 2023 was 6.7% more than the demand in 2021. why did this happen? we have the fastest growing economy in the world.

>> what can we do? >> what we have done is the prime minister -- we achieved that in 2021. similarly, we have pledged and reach that goal in 2022.

we pledged by 2030 we will have 50% more capacity. i have 65%. you already have some sort of box.

you can participate. [indiscernible] >> the cost of producing hydrogen.

[indiscernible] our -- [indiscernible] cost will be the lowest in the world.

we amended the law in the last session of parliament, and we provided mandates for changing fertilizer that you are using hydrogen or ammonia. gradually, -- shery: the power and industry minister. just after the summit, business leaders were gathering for the be 20 meetings.

any key takeaways? >> first off, climate change was the topic of discussion. was nice to see that throughout the event. use a wonderful sense of humor to ask tough questions, 13 trade ministers were on the session including representatives from both the china and u.s.. the trade commissioner said you

need this measure to tackle carbon. he delivered a message he made argument for the continued need for investment in fossil fuels and low carbon technologies. that is the type of message that resonated better. beyond the awareness was great

to see the presidency had dispatched to engage, being careful and interactive. the preparation is necessary, it was nice to see they are doing this which is not solely focused on climate change. shery: what do you think are the necessary steps. >> to be able to we have to reach the commissions as soon as

possible and omissions, the quicker we can reach the commissions the more time we had. the good news is many members reached peak commissions. in the case of india, we need to accelerate solar, wind. they have to lay the groundwork for tackling emissions. this is an area where they are starting to lay out hydrogen obligation mandates. we need to see these measures come much quicker so india can reach peak commissions. shery: we have more to come on daybreak asia. this is bloomberg. ♪

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haidi: let's bring in our asian stock reporter. >> good morning, it's been a summer, it was a couple of weeks and when it fizzled out, the retail investors got really excited and then moved on salt. 30's are on high alert.

they vowed to take stern action that could be caused i meme stocks. they are monitoring very carefully and they are warning about and they have been. why is there frenzy? investors say because there is an absence of clear leaders at the moment, we have seen large-cap stocks. driving excitement because.

haidi: the latest on the meme stock praise and south korea. we will be watching the markets. take a look. he saw -- november lows against the u.s. dollar. the chinese yuan you can see the

aussie holding steady. we saw strengthening given as i mentioned the china measures. not to mention retail sales beating estimates. haidi: the woman's world cup effect. let's take a look at how trades get underway in key markets. in japan, relying on chinese demand. in the south korean markets. here in australia, woodside, we are seeing both instability

after a big move in benchmark futures in the european session. this is how the future session is shaping up. the first back-to-back advance since august. in the next hour, analyst tell us why they are getting less cautious on a big equities and speaking about the in beijing. those market opens ae next. this is bloomberg. ♪

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>> this is daybreak: asia

counting down to asia's major market opens after u.s. stocks and bonds gained ground in the new york session. the golden dragon china index actually seeing its best day in three weeks on beijing's efforts to shore up confidence. >> are those efforts enough is the question, given that we have seen the lack of momentum lasting and we have the china securities general calling for a triple archive after that surprising and larger than expected move from the pboc with a rate cut earlier in the month. they may need to do more, but the question is whether there is an appetite for the big bazooka, and if that is what markets need to get back on track. >> the csi 300 ending only 1.2% higher after a 5% gain in the session. and japan, korea and australia starting the day, focusing on eco-data in japan because we have had the figure rising to

2.5%, the first time we have seen again in four months for july. coming in at 2.7%, a little bit more than what economists have been inspecting at 2.5%. really hinting that the tightness in the japanese labor market could be near a peak. what that means for the boj will not necessarily be good news, because a tighter labor market is what needed -- is needed to spur wage gains. we did see the yen fluctuating and goldman sachs, one of the most read stories, saying that we are at 1990 levels for the currency if the boj's text -- sticks with its easy policy settings. what is moving in the session today, we have the nikkei coming online, just a little bit high up point -- .4%. let's move to korea, and we do see just muted gains with trading underway, the 2024 proposal for the budget and

focus to later today. also in moves in the currency, trading stanley here, but broadly the session on wall street was a little bit more risk on and what is notable in that trading session was lowered trading volumes, i take a look at where we are sitting again, it is a lot lower with thinner liquidity as we come online. let's change on, because we have the open for australia in focus, very flat here as we come underway. we have been watching those bond yields ticking lower, with bond traders very much focused on the other thing, it really is that china slowdown. do we need more support measures to try to lure investors back into the market? yes, the csi moved big, closing fractionally higher, but foreign investors continue to pool funds out of the market. brent crude is coming online flat, it just seems today that perhaps investors are taking it

easy as we enter into august after jackson hole finishing this week. >> and headed towards labor day holiday next week, that lobbying felt -- lowell being felt in trading. let's bring in our guest who has upgraded stocks to -- from neutral to least preferred, they had a aipac equities and credit at ubs. always great to have you. is the call on the equities and expectation that eventually we are going to see yeltsin fall, because we have seen buyers being lured back to treasuries given those juicy yields. >> first of all, i should say that if you give me a choice between equities and bonds, of the two, bonds is probably an easier entry, but we also went over the number -- numbers in the u.s., the macro and its

numbers, and it's not a great picture. i would still expect more so towards the end of the year, but maybe not as pronounced as we initially thought. within, when we look at global equities, we should say that many of these are very very cheap, unlike the u.s.. but we still need to be selective in the equities space. >> where is selected ms. focus? -- selective this focused? >> one is emerging markets, and i also suppose emerging asia is included, we have a couple of overweight's here in the strategy, and the other one equally affected is the energy sector, that is an interesting story, if we achieve a soft issue if you want to call that the landing, you can make a case for that on stocks, most inductors have -- investors have

looked at the tech side as cyclical, where's the energy side is not ask -- as expensive at all, we can expect a rotation to cheaper cyclicals, energies of the other space to be upgraded right now. >> how do you invest around china? do you want any exposure at this point? has this been a cyclical slowdown? or the issues at stake here? >> is a combination in terms of how our investors are thinking. both but in the near term, the cyclical aspect outweighs the structural months. i would argue this window, we are seeing the measures coming in, and you can argue that we should in any case not expect anyone measured single-handedly turning everything around, but it does show a series of

measures that the authorities are keenly aware on the pressure of economies as we know. there is high motivation to act, and we are relatively short that they will be more measures coming and we need to create a floor for the property and for confidence, and the debt side of local governments and continue to also not -- encourage, should i say, private companies. we are beginning to see first signs of it, if it continues to be addressed on that structural component. i recently morning, china is positive at this point. >> china -- the china economic slowdown that we have just talked about does not seem to play into the optimism when it comes to oil? >> oil, fries, perhaps a bit

contrarian, is to a large extent a really supplied drug -- supply during theme, and we are not thinking about that at any point, it would probably be reasonable, what sometimes get -- gets missed is oil demand is still growing, it's not like we have weak economies around the world, to this day, it is still growing despite everything that has happened. all you need is supply-side discipline, i think that we are getting that and we know about multiple years of underinvestment in the private sector which can bring it up. that can surprise people and combine it with a fairly cheap valuation on the sector which could be just a mix we need for energy to outperform. >> of commodities, gold has been a preferred hedge in recent months, but given rising yields, where you stand on that?

in this strategy, even though we see upsides going into mid next year, we have decided that the view that data is so weak and some people call what the fed is doing fudging, that the risk is receding, and if it proceeds and the inflation keeps coming down than the case for gold is a bit less strong than we thought it would be earlier. more neutral among the asset classes right now. >> on your notes you say that you have also neutralized your most preferred view on the end. give us your rationale. >> i think that we have to realize maybe we looked too much on the japanese side, we saw yield curve control, all of the things that we expected, but to be honest we got a bit caught wrongfooted there, on the u.s.

side of things. we think that for the reasons i mentioned the correction will come in the u.s., and the rates will fall. which will then support it in the end. we have not changed our view that the yen should strengthen over the next 6-12 months, possibly quite a bit. in the near term, the u.s. right side will probably be steadier than we initially assumed, and if that has been the case, we don't want to hold out as the most preferred currency, rather we choose the euro right now. >> always great to chat with you. the head of aipac equities at ubs wealth management. more to come on dave occasion, this is bloomberg. -- daybreak asia, this is bloomberg. ♪

>> waiting for the markets in china, stocks trimmed most of their early gains by monday's close, doubt lingering over how effective beijing's latest support measures will be, and one indicator in particular

signaling the rally will not last. our market coanchor joins us now with a preview. david, what are you watching? >> we are watching, good morning, by the way, nice to see. we are watching the small caps gauge. why are we watching that? to borrow an analogy from the sound of music, it's when you know the hills are coming alive in both directions when you start to get really big into small caps basis. you alluded to the fact that the rally is not going to last, perhaps, it's because this group of stock, we are looking at the chinese index, has been languishing. it underperformed this quarter, your today over the last year. as you can see, the most extreme bull and bear moves on the onshore markets, we are talking about stocks listed on the chinese index typically see this group of stocks in both directions. we had yesterday which was quite

telling is one of the biggest reversals lower that we have ever seen on record. the gauge actually closed higher for the day. it was the most disappointing update on record. we swung down about 5.6 percent, but we did manage to close above water but it is an indication that the most extreme balls are not going to chase this and state under the sun for too long. i guess it is something to watch, we did see a big reversal, and also mentioned the fact that volumes absolutely explosive -- exploded as they came up of highs of the day. the second-most volumes i believe going back to 2022 or 2021. academic, but a ton of activity. >> the most disappointing update. i like that phrasing. the brokerage has seemed to be about -- have a lot in common. are they likely to sustain the

rally that we saw yesterday? >> that is a good question, because it comes -- becomes an earnings conversation between a fund metal part of how some of these brokerages earn their keep. our colleague at bloomberg intelligence put together some numbers, and the last time that they tweaked was spac in 2008. if you put a chart together and put that massive rally then you understand why they introduce that in the first place, in some places to discourage retail investors from coming into their house, the number here they are trying to stop over could jump 60% on the reduction of these fees. it obviously applies to varying degrees to this different brokerages, but this is a fundamental part that we should be watching very very closely. drug riches gained a limit in most cases.

-- brokerages gained a limit in most cases. >> the unemployment rate rose for the first time in jump -- since july, a signal to the government. let's get our editor out of tokyo. does this move the needle for the boj? >> it's certainly a slight negative and they need the labor market to remain tight. and for that virtuous economic cycle they need inflation to be accompanied by a tight labor market. that's a prerequisite for that. back in the july meeting, the boj expected the labor market to remain tight, and it's is -- it's a surprise that we are seeing it rise for the first time in four months.

we are up 1.29%. as far as today's state is concerned, it looks like a surprised negative for the boj. >> where does this leave the boj ultimately when it comes to that search for that virtuous economic cycle? >> one report does not completely change the whole picture, but like you mentioned, it definitely is a key part of the path towards normalization. one thing that keeps coming up is next year's spring wage negotiations between businesses at the labor unions in japan. and a lot of economists think that unless there are strong results next year as well, it's difficult for the boj to move towards that normalization path. so, we do need the labor market to keep remaining tight for

demand to remain solid in japan and for companies to be willing to raise wages in order for the boj to get to its 2% sustainable goal. >> what do we need to see when it comes to wage growth at market conditions from here? >> one figure that has been mentioned in the past is the 3% nominal retread, which has not been mentioned much recently, but we certainly do need a -- probably wages to go up beyond inflation, or at least be close to that level for the boj to be able to justify itself and say that wages are accompanying inflation. we do certainly need companies to keep that momentum going in japan for any major change in

policy from the boj. >> art japan economy and government editor joining us from tokyo there. we you can -- you can get a roundup of all of this on dayb and daybreak available on mobile on the bloomberg anywhere app, you can customize your settings so you only get news on industries and assets that you care about. this is bloomberg. ♪

>> the citadel is going all out on what it calls truly exceptional interns, admitted an intense battle for young talent across wall street and silicon valley. ken griffin pace students over $19,000 a month in a quest to find the next generation of math

and computer geniuses, becoming one of the key components of market trading. that is the focus of today's big take. tell us more about this process at your company and the grueling selection of these interns. >> out of the 69,000 intern applications this year, fewer than what percent actually made the cut to the program. almost without exception, these students boast titles and degrees from the top schools and their regions, many holding math and computer science degrees, some actually having math olympiad gold titles under their belts. the reason that citadel is so selective is because of the intensity and the complexity of their work. the interns, some are paid $120 an hour and receive return offers within weeks after the

internship to join full-time, truly exceptional ones can join part-time as early as their sophomore years. and during the internship program, they are joining citadel and citadel securities in an army of financiers who generated or than $65 million in revenue last year. -- billion dollars in revenue last year. >> how has campus recruiting changed when it comes to how wall street is doing this? >> don are the days when hr assistance funneled resumes to hiring managers. campus recruiting is starting out earlier these days, and they also happen around citadel specifically. they take a very targeted approach, using preferred recruiting to target top candidates very early on. sometimes as early as freshman year. these candidates are also

invited to dinners, networking dinners with the team leads across the company. the reason for this is because citadel is competing with many companies within the same sector across wall street. but also tech companies are going after these math and computer science wizards. >> once they are selected, what happens during the actual internship? >> it is an intense 11 week program. they aregiven a large project they will tackle and they are supposed to solve world -- real-world problems. their solutions can be applied to real-world businesses and at the end they give a presentation and off-site training where they do simulation and role-play to learn about the secretive world of hedge fund trading and market making, and they are also groomed on other stuff like talent leadership and effective communication to bring in

specialists to do personality tests and train them on avoiding up speak and filler words to increase their presence. they spare no resources to try to sift out the top talent in order to make sure that they fit and succeed at the company while they are competing with all of these other companies out there. >> the asia invested in lulu chen there. here are headlines tracking around the world. the federal reserve's head of bank supervision in san francisco will retire by the end of october, along with the -- he came under scrutiny following the collapse of silicon valley bank and other lenders along with the president of the fed in san francisco, who -- and he will be replaced by a former minneapolis fred official temporarily.

donald trump will head to trial on march 4 next year on federal charges of trying to overturn the 2020 election. that is the day before the super tuesday primaries that are essential to his did to regain the white house. trump wanted to delay the trial until april 2026, long after voters decide whether or not he will get a second term. the judge says that the public has a right to a prompt resolution. president biden heads to vietnam looking to deepen cooperation in areas including trade and climate change. the visit big getting september 10 will follow the g20 summit in new delhi. they are looking to strengthen ties with asian nations and reduce chinese influence in the region. the uae economy minister says that joining the bricks group will not come at the detriment of ties with the west. he told us that his country is

looking to develop trade and contribute to the new development bank created by the block. the uae is one of six countries newly invited to join the emerging markets block. >> it will allow us multilateral support and we are focusing on our global presence. we have always been a global hub. with india, indonesia, that is the most important aspect, where we are focusing at the moment. that will grow. >> let's take a look at the set up when it comes to european futures, just opening up at the moment. this is a food -- picture what comes to socks up by just .07 percent, and dax futures modestly in the positive. we see here a bunch futures -- eurobond futures up a quarter of

a percent futures. and that consideration is to the right outlook given on a big eco-week when we have jobs numbers going into the end of the week. we saw the biggest one-day gain in about a month following the back of rally we saw in asia. we see modest gains in the asian session as well, but lots of speculation as to whether beijing will need to come through with something bigger to drive sustainable momentum in its stock market recovery. much more to come on daybreak asia. this is bloomberg. ♪ i may be known for my legendary football career, but truth is, i love a bunch of sports. the only trouble is knowing where to find them. that's why i got xfinity. so, i can easily find and watch whatever sport i'm into all in one place without missing a thing. even if it's football, australian football, or football football. in a word—it's fitz-credible. i got to trademark that one.

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>> we agreed to establish a new commercial issues working group,

a formal working group, which will allow the u.s. and chinese government officials and very importantly, u.s. and chinese commercial practice representatives as we seek solutions on trading and investing in issues to advance u.s. commercial interests in china. >> the u.s. commerce secretary they're speaking on her visit to china. let's bring in our next guest, who deals with nearly 1000 companies operating across the broader market. he joins us from beijing. happy to have you with us. i understand that you are part of two meetings with the secretary. what was discussed or spoken of? what was the priority? >> yes -- yesterday was the first of her three-day visit to china. i had a chance to catch up with her in u.s. businesses and i was able to go with her to the

meeting of the broader business committee. she said that she had just met her coterpart, the commerce secretary, and had a very good meeting. he had been to the u.s. recently, it was a reciprocal visit was very good. additionally, at the reception in the evening she announced that the united states and china have agreed to open two dialogues, one on commerce in general and another on export controls, because the chinese have been concerned that the u.s. has put several expert controls on them and they are worried about what the impact will be. our point of view was that she had a carrot and stick, promoting trade but also running export controls. they set up to work in groups to talk about those specific things, and we thought that was great news from our first day of the three-day visit. >> how do you view the two tracks of wanting to balance trade and that has been seen as

one way to boost ties, and a win-win, but also bringing in that national security and strategic competition aspects? that is not something that is going to go away between these two economies. how hard has been to operate within that dynamic for american businesses? >> in general, we have been very successful in china and the experts controls -- export controls have given us a little bit of pause. we are trying to make sure that we are trading in places that the government wants us to. the secretary said that some -- something that secretary yellen said, that the vast majority of trade between us is not controversial, and does not touch on security areas. the secretary has said that the u.s. will not compromise in those areas and the u.s. business community continues to talk to the u.s. government to make sure that we understand where the guardrails are. the u.s. business community in

china and china members have been a destabilizing factor in this relationship over the past three years, during covid. also over the past couple of decades. >> we have noticed more outreach from beijing officials towards foreign businesses in the country. they want to hold regular meetings and here what you have to say. do you see a shift in tone, and argue seeing an actual change in terms of policies on the ground? >> that's of sulli creek. when we did our last member survey, the number one complaint from our members and for the last three years has been poor u.s. china relations overshadowing their business. one of the positive things is the chinese government reaching out to form a business community. august 13, the chinese announced what is called the 24 measures. a number of measures to try to promote the additional fdi into china.

those measures talk about issues that we have raised to the chinese government. on the one hand, we feel they are listening and these have included things like concerns about data, intellectual property, tax exemptions, it does feel like the conversations we are having is being reflected on. one of the challenges that has been announced is will it be implemented, but in general, conversations between the chinese government and u.s. business have been more positive. >> we have meet -- see more conversations with u.s. officials as well, as this visit was the fourth cabinet level official to visit in the past three months. but we have not necessarily seen that being reciprocated by beijing officials coming here to the u.s.. what do you make of that? >> china has continued to say that one of the most important things to stabilize this

relationship is exchanges, equal exchanges. government to government, business leaders going back and forth, students going back and forth, and then tourists. i will say in this case, commerce secretary recently went to washington dc and had meetings there with the secretary and others. her coming back is a reciprocal visit which tells the type -- the chinese government if they continue to send officials to the united states that will actually produce positive results. remember, the chinese officials have been restricted from traveling during covid, and they are just now starting to visit folks again. this is a very positive message that the united states said if you're willing to talk to us we are as well, and having the secretary, was important for the business community because our number one job is to promote trade between the united states and china, and if they feel that is one of the stabilizing forces

in this relationship. >> with the chinese economy facing cyclical and worrying structural challenges to economic growth, do you think that dynamic place favorably to more favorable incentives and policymaking when it comes to foreign companies in china or does that make things harder? >> it's a good point. as the chinese economy has its bumps, that makes policymakers more receptive to u.s. businesses, and also makes them troubleshoot to look for ways that are hurdles stopping foreign investment. we have had a number of positive discussions. i had two meetings last week with financial regulators. i definitely felt the tone had improved even over a couple months ago, and i have to stock some of that up to the challenges that the chinese economy is facing. >> do we see changes in the way

that businesses and your organization are operating, redirecting supply chains for example, and trying to create redundancies after the pandemic? >> that's right, the supply chains have been built up over decades, it's not easy to change those and come up with places to produce, but a year ago during the lockdown, a number of companies have the unfortunate realization of just how their supply chains were focused with one or two pitch points. over the past year, our member companies have said they are looking for other ways to reinforce their supply chain. most of our companies are not looking to exit china. most companies view trade with china to be a very positive piece. china continues to be a major market for u.s. companies. we believe that trade continues to create jobs in the united states and that is important. certainly companies have been taking additional actions to reinforce their supply chains.

>> the president at emma chandra china, thank you so much for joining us. we are heading towards the market opens in china. what do you see, belle? >> a bit of a counterweight to the negativity we have been hearing this morning because a lot of the chatter is that the market rather cannot last, that we had that big bounce but it gave up into the close. we saw foreigners exiting the market. a lot of bad news, and also that question of whether beijing needs to pull out more to try to convince investors to stay in the market or return. but there is a bright spot coming through in the commodities space because we have seen this taking a look at prices here the other day, pulling about that 100 tom or dollar per ton mark over the rest of the year. why is that surprising? 4% of the steel demand -- 40%

goes into real estate sectors. when you see that slump you would think that you would see a huge drop in prices as well, but they have been quite resilient, which tells us that there are brighter spots coming through in the chinese economy. one of them is on this chart, and you can take a look at infrastructure spending, not from the local government level, because they are still pulling with financing pressures, but from the central government we have china railway investment surging, taking a look back to 2013, we are up so far you today 25% on the year. that is a key component as well. it could be a reason that we are still seeing a little bit more point c. where we go from here, there are seasonality factors in play, because we typically see a pickup after several months. analysts are still saying that prices will be dependent on the robbery sector and more macro things.

>> that's a big if, we have a lot more to come here on debris geisha. this is bloomberg. -- daybreak agape -- asia. this is bloomberg. ♪

>> major markets across asia trading in the green right now

with the nikkei now higher on utilities and energy. wti trading above $80 per barrel, and every benchmark on the japanese index integrate. we saw gains of .3% on the kospi, strength in the korean won, which rose to a two-week high on funds buying create equities. we see it holding at that 13.23 level. kiwi stocks are under pressure. now we are watching asia's earnings season approaching its final leg, a monkey results expected are chinese banks and financials where property markets are a major headwind. let's bring in our reporter. lisa, what are we expecting? >> good morning. it's a big week for china bank earnings, three out of the largest state owned banks are reporting this week, including

icbc, their largest by assets. we can take a look at what their earnings will be like by analyzing other earnings reported last week, with larger state owned banks moving at hand over hand with each other, it's likely that we will see higher profits, but worsening figures when it comes to key metrics like net interest margin and provisions for bad loans. business pressure has been high this year, officials have talked about allowing homeowners to refinance their mortgages, all of this leads into profitability when banks make loans and also helps -- does not -- he is not helped by sluggish economic recovery. >> how long -- how does the broader economic downside affect the banks? >> it's all connected in a way because you're looking at sort

of the two biggest issues facing china's financial sector, the liquidity issues at the turmoil at the shadow banks, and also the referring -- banks. it is not clear how much exposure some of these banks had , so that has been a big risk that a lot of analysts have pointed to come with shadow banking, these are essentially investment product. another risk that was talked about is the effect on overall confidence and wealth management and products for banks that could really affect business and confidence there as well. >> are a self finance said there. the yuan has reported its weakest revenue growth in more than a year, a sign of the damage discounting has done to the biggest auto market. linda lou joins us now for the strategy to make sure that it

stays on top of the sacrifices they have made when it comes to pricing echo >> --? >> they are really trying to forge a whole new range of products to cover that market, including luxury brands, launching two new brands, both of which will have cars that will sell approximately one million, and they are hoping to get products in that range for more revenue. they also want to create an affordable economic model which goes for as low as 17,000 yen, i think that they are hoping to cover the market and bring in more customers to offset the losses. >> where does their rival stand?

>> are actually performing well in terms of how they have done in the past. analysts are expecting that they will be able to lift their margins from something around 5% to more than 6.7%, probably a result of them being able to boost production and raise their deliveries. the 20,000 -- they reach the 20,000 mark for the first time in july, and that is a good sign that they are trying to get their economies of scale going, and hopefully margins will return to the double digits. >> are reported there. we do have more to come here and daybreak asia, this is bloomberg. ♪

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>> has learned that goldman sachs has agreed to sell its 29 billion dollar wealth management business to creative planning, a money manager that oversees about $240 billion, su keenan joins us now with the latest. this is further evidence of goldman's retreat from the retail market. >> we have been hearing that this was in the works and it is now playing out. of course, goldman much admitted that its foray into the consumer banking sector with its markets mission was a mistake, and this was ancillary to that. an opportunity to reach out to mass influence in the affluent market, the so-called millionaire next door. now, they are retrenching from that. goldman struck a deal selling the investment advisory business that grew out of its 2019 purchase of united capital to

creative planning, a wealth management firm. and the offloading of the company, just four years after goldman acquired it, signals that the firm is continuing to back away from this misguided move towards the mass consumer banking. in move initiated by the ceo david solomon. the deal, in its inception, instantly connected goldman with 22,000 clients, with just over $1 million each on the platform. what you would call the millionaire next door. analysts have been pointing out for a couple years now that bloomberg and -- blue -- goldman is focusing on the billionaire next door, incredibly rich customers, managing the ultrarich money, and that's probably its core business. goldman did not reveal the price of selling out the unit but says it expects to recognize a gain when the deal closes. we should talk about how that is

in sharp contrast to the other deal, trying to sell green sky being sold at a steep discount, again, the sale of a unit just over a year after -- it completed takeover. again, a lot of reconsideration of earlier moves make -- that just did not plan out. >> want to they have to gain from this? >> more money under management and an expanded relationship with goldman. creative planning is run by a man who has written several self-help book -- self-help books, including one with tony robbins, and was once the chief of investor psychology. they already had a custody deal with goldman over the company, this is an extension of that. the ceo told bloomberg that an expanded partnership with goldman is a natural strategic thing.

>> su keenan there. let's take a look at some of the other corporate stories we are following this hour, china has agreed to sell its aviation unit two the sovereign wealth fund of saudi arabia for billions of dollars. an affiliate of apollo global management will provide a $920 billion portfolio to secure aviation loans. capital client -- lone pine clients pulled about $3 billion through june. clients poured -- pull all of this money from its cascade fund, totaling about $1.7 billion. most redemptions happen in the second half of 2022, a year that both funds had significant losses. >> taking a look at u.s. futures trading at the moment, stock futures and bonds both gain

ground extending those gains that we saw in the new york session. this after the s&p 500 finished about that for 400 level and really hovered around that level throughout today's session. saw a little bit of that august risk mood debating today, but we are still poised for the worst months of 2023, and perhaps not surprising, given that we have seen those buyers returning to treasuries with those juicy yields, and we continue to see the 10 year and two year yields pressured in the asian session, and the two year yield below that 5% level at the moment. this, of course, after we saw those gains last week, the 10 year reaching that 16 year ercot -- hi. and we also have in the new york session, the two and five year treasury auctions drawing the highest yields since before the financial crisis. really reflecting that bond market selloff that really deepened last week. of course, the expectation is for further rate hikes,

especially after jackson hole with policymakers talking about the potential of higher rates for longer. this week, we are watching on the friday jobs report coming out, not to mention the preferred inflation gauge, the pce price index as well. ? >> we will get key data out of asia as well, looking to key confidence and consumer confidence figures out from the euro zone. clearly, the outlook on the tightening cycle for a lot of these economies is front and center for investors. you can forgive them for seeing a little bit of sideways trading action. here in asia we are seeing brought upsides, moving higher alongside that rally that we saw in the u.s. equities session. we see shares taking higher when it comes to japan and south korea. the big question is what happens with china, because we are continuing to hear more talk

about what is going to be needed from policymakers. and what will be that bank stimulus that they have so far refrained from offering, there needs to be some sort of whatever it takes because we have seen that lack of momentum when it comes to the economic and stock market recovery, that surge of the opening monday, and then really pulling back most of those gains by the close. we will be watching for the trading today. we will be speaking to brandywine global, who thinks that china is frustrating right now, and they hope to deal with the doves -- fares and the bulls. and telling beijing to do more to turn things around. that is it for daybreak asia. this is bloomberg. ♪

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