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haidi: good morning. welcome to daybreak australia. i'm haidi stroud-watts in sydney counting you down to asia's major market opens. shery: i'm shery ahn. u.s. futures online in the asian session. it was about economic data that came out today pointing to more moderation in the u.s. economy. we have the s&p 500 gaining for four consecutive sessions topping the 4500 level despite the fact we had regional banks falling. we learned -- learned the fed is issuing private warnings to lenders. but it was really about the data, private payrolls, u.s. companies adding the fewest jobs in five months. that's an unexpected downward revision to second-quarter gdp and related inflation. what does that mean for the fed? for the market more bad news. good news in that we are seeing that felt across the board.

treasuries and small gains, yields under pressure again. at the dollar lower. oil also lower in the new york session. though we are seeing a little upside in the asian session. we saw a substantial drop in u.s. crude stockpiles, the lowest since september. haidi: let's look at asian markets. the eco-data this weekend will be key as to where we see direction. the aussie dollar looks a little softer at the moment, 6474. there is expectation it could pivot higher. we expect a diverging inflation outlook there. we are watching when it comes to the aggregate and commodities side lng strike prospects. impact on pricing momentum there. dollar/en, months and weakness is striking again with investors hedging bets. we have seen the yen under pressure at the end of every

month since february. at 150 is insight as where we may see a boj decision trigger there. so much comes down to the eco-data and where policymakers globally go from here. u.s. data shows the economy slowing. in china a deepening housing crisis ahead of key economic numbers is expected to show shrinking activity. let's get more analysis with bloomberg's chief economist tom holick and annabelle droulers. tom, i will start with you. the latest numbers from the u.s. show some cooling. is it enough to move the needle when it comes to the fed? tom: we had a couple need -- numbers today, heidi. we had the adp jobs numbers at 177,000. that's a little lower than expectations. we try not to pay too much attention to the adp. it's a pretty bumpy volatile series. the gdp was vision -- revision,

though, is worth a look. gdp second-quarter was revised down and we think that is of a piece with other indicators we have been looking at recently. recall that the jolts data earlier in the week showed a significant drop in the number of jobs openings. our take away is the u.s. economy is not as strong as it looked over the summer and it will strengthen the incentive for jay powell and that he met the fed to stay on hold. shery: we will get more data from china as well. really the expectation is for more deterioration across the board. if the pboc and monetary policy authorities come in with more support, how much of a difference would it make? >> -- tom: we are looking ahead to pmi data. the first survey on what happened to the chinese economy in august. the expectations are it will

show further weakening. we think that the services pmi, the nonmanufacturing pmi will drop closer towards 50, the level that separates expansion from contraction. and manufacturing pmi will edge a little further into contraction territory. clearly the chinese economy is crying out for more stimulus. so far, the indications we have heard from the pboc are they want to do more. we are still hearing about micro moves to increase the supply of credit to small businesses and private forms -- private firms. that will help a little on the margin, but it's not the big bank on monetary policy or the big on fiscal policy i think it's required to turn sentiment around. shery: there is so much questioning into whether the micro moves or big bank moves could help the project -- of the property sector.

pretty dire numbers as well as outlook from country garden. annabelle: right. we got this after the bell yesterday. the numbers tell us the company posted a first half net loss of almost $7 billion. compare that over one year ago when the company was posting a profit of about $85 million. it really reflects the steep decline we continue to see in the chinese property market because even the revenue was high for the. that was high for the -- was high for the period losses out on. impairment charges rose as well. what else was of note during the earnings was a sense of mea culpa coming from the company because country garden acknowledged the role it played in generating these sorts of numbers and say against a weaker macro environment they were too slow to recognize challenges from that to pivot accordingly. been quite reliant on lower tier cities,

back to your question, yes. in terms of outlook country garden is flagging serious risk on the horizon raising the risk of a default for the company. they say that's really a genuine concern now. shery: bondholders voting on the request to extend repayment. what can we expect? annabelle: country garden is really facing a wall of debt deadlines looming for the company. we are seeing negotiations between bondholders and banks. the note you are referring to there is a you want them nominated -- yuan denominated one due september 4, this coming monday. dollar bonds in deep distress. debt pressures the company is facing. the yuan denominated one, country garden asking to delay the payment of that coupon with 40 days gray sense wants to stretch the payment of the principal worth more than point $5 billion and put it into 2026. bondholders and -- have until

thursday night, 10:00 p.m. local not in beijing to vote on the proposal. so far it seems like there has been a significant enough amount of pushback. actually, country gardens' vote here with bondholders was supposed end last friday but country garden extended it because some investors were working -- asking for full repayment by the deadline. haidi: troubles continue to be seen in the shadow banking sector. finances are being scrutinized. are we closer to state led action? annabelle: that is possible, yes. we could see the start of a buyout. a bloomberg story is coming to us. we have been told china has asked two of its biggest financial firms to dig into the books of zhongrong trust, another closely linked firm that stopped payments on investment products earlier this month.

the risk is they are sparking contagion across the financial sector and also threatening social stability because we saw some protests from zhongrong trust holders. who is being asked to do the investigation? citic trustco. reading the tea leaves, this tells us perhaps there could be state led involvement. when we saw a similar examination by citic in 2021 it led to a state led bailout. shery: you had a note focusing specifically on chinese property. that was too big to fail and too big to say. what does that mean? tim: -- tom: that was talking about the walling deadfall falling due for country garden. of course, it's not just a problem for country garden. it's a problem for china's whole

property sector. so, what we have done is estimated the liabilities falling due in the months ahead and we set that against the cash on hand and the expected sales revenue with china's property developers repaying liabilities. what we find is there is an absolutely enormous shortfall. we are talking about a gap of trillions and trillions of yuan. that's what we mean when we say china's property sector is too big to fail, but perhaps, too big to save as well. there will be more pain coming here. not just for investors in china's property developers. but also, for the banks and the shadow banks. we heard annabelle talking about the trust company getting into trouble. for homeowners, they will see prices fall and the value of their investment line.

for the government, they will have to flex the public balance sheet to put in more money to prevent this sinking into an all-out crisis. haidi: bloomberg economics chief economist tom orlik and annabelle droulers. we will be discussing more about the economy and china. we will speak with the managing director of the china beige book and why they remain optimistic. even as we see signs the country's economic engine slowing. this is bloomberg. this is bloomberg. . so i can take care of this. i'd like to thank my stylist, now getting dressed is so easy. thanks for getting my fit just right. for finding me looks that work for me and my budget. for finding me my favorite pair of jeans. i'd like to thank stitch fix because, i look good. thanks stitch fix, you just get me. -they get me. -you just get me.

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shery: u.s. futures early in the agents of -- session after the s&p 500 near the 4500 level despite lenders falling. bloomberg learned the fed issue private warnings to some lenders to tighten supervision. we are watching closely treasury yields. down again. as we continue to see moderating eco-data today was private payrolls. not to mention downward revision to second-quarter gdp and related inflation gauges. our next guest says bond yields will likely remain in the driver's seat in terms of short-term equity performance. liz ann saunders is managing director and chief investment strategist at charles schwab.

she joins us now. it's great to have you with us given even the treasury market has been so volatile after the selloff we saw. now we see small gains. what does it mean for the year and the performance of the equity market? liz ann: it depends on fed policy and in turn, yields. it has been such a unique cycle, even in the short term. there are always conflicting messages that come from various economic data. it's not so much the level of the yields that matter. it's the volatility. we have had much more volatility in the bond market and we have had in the equity market and that is why usc none environment where higher yields typically mean lower stock prices and vice versa. i think that's one of the things that gave the market a bit of relief over the last several days, bit of a retreat in yields over the weaker economic data you cited. shery: if we think about the fed

remaining data dependent, what is the data telling us about this debate ongoing about a hard or soft landing? liz ann: i think it is important to take a more nuanced look at this cycle. i think the recession versus soft landing or hard landing versus soft landing kind of misses the fact that some segments of the economy have gone into recession, or in some cases, are still in recession. that is why we call it rolling recession. go back to the worst part of the pandemic during a massive stimulus infusion both on the monetary side and the fiscal side. the launch that provided for the economy was concentrated on the goods side of the economy. because services were shut down. that led to big surges in areas like housing i'm housing related, consumer goods. those segments of the economy then went into recessions. you just at the offset in later

strength that happened on services. the same issue is rolled through the inflation data. to me, best case scenario, it's not so much of a traditional soft landing. that ship has sailed for many of the aforementioned segments of the economy. best case scenario might be we continue to see april through whereby of services and/or the labor market are hit, you have some stability, if not recovery in some of those areas that have already had the recessions. i still think a declared recession is more likely. but i think saying soft landing misses nuances of the cycle. haidi: have equity investors ducked the biggest part of the downside risk from rising yields? you see the risk of another breakout? if so, do equity markets i guess have the resilience to be able to withstand that? liz ann: i think that would depend to some degree on what was causing any breakout on the upside in yields.

whether it was because inflation starts to rear its ugly head again or growth prizes on the upside. obviously those would have different implications for the equity market. we think disinflation will continue. though, not necessarily in a straight line. some of the most beneficial base effects, certainly, that flattered the june inflation numbers in the united states because they were going up against unova last year when you had a nine handle on an inflation metroplex cpi. i think it really depends on what is the driver of the move higher in yields. what you have seen the last couple days is we are in that mode where the market is caring -- carrying weaker economic news. the type of environment does not tend to last an extended time. what i think might be an important test to judge the relationship between the backdrop yields and the economic

environment and what the equity market does is friday's jobs report. i think a much hotter than expected number probably is not met well with the equity market. but, a much weaker number i think will also be an interesting tell to see whether the equity market is dead in that sort of cheering for bad news mode. which again, does not tend to last for an extended time. bad news eventually becomes bad news. haidi: when you talk about the test for sentiment, do you think ai has failed that test? i was personally quite surprised on the lackluster response to even nvidia with that pretty epic set of numbers. what does it tell you about the narrative going forward? liz ann: so, i don't cover any individual stocks including nvidia. but i think that maybe the environment might be a classic example of buy on the rumor sell on the news. you have so much enthusiasm that was added onto the mega cap tech

and tech related stocks. there launch into being the complete driver of s&p performance. that time started in early march and became in conjunction with the failure of silicon valley bank. i think it brought investors into what has been this cycle's defensive stocks, mega cap, tech. then you had this massive ai kicker such that by the beginning of june all the performance was explained by the mega cap names. at the same time only 15% of the s&p was outperforming the overall index over the prior 60 days. so, i think that massive concentration in large part due to the ai theme got us to where we were in early june. then i think there was just a little bit of a sentiment move

down. sentiment got too frothy. valuations were stretched. then you saw a spike in yields. all else equal, that puts downward pressure on more highly valued segments of the market. i think it was maybe a sell on the news and then more fundamental drivers behind why we saw pullback. shery: liz ann saunders good to have you with us managing director and chief investment strategist at charles schwab. if you missed any of the conversation or want to read the stories you need to know to get to -- get your day going on today's edition of to break. terminal subscribers go to dayb to customize your settings and only get the news on the industries and assets you care about. this is bloomberg.

shery: ewers, secretary raimondo

stretch's -- stressed the need for a predictable regulatory in china as she wrapped up a visit to the nation intended to improve economic ties. secretary raimondo: a year of arbitrary decisions, lack of due process. tens of millions of dollars in fines for reasons that are not clear. my point is that actions speak louder than words. as long as that is happening on the ground, that makes it very risky for u.s. businesses to shery: do business here. shery:for more let's bring in bloomberg's -- international economics reporter eric martin. there were higher expectations going into the visit and there were for other u.s. officials. what has this achieved? eric: absolutely. this visit has in a way reset communication, at least. reopening the communication between the commerce department

and the chinese communist party government in beijing. it is really important. the trade channel had traditionally been open. we had seen a lot of interaction. traded delegations, trade promotion by the commerce department helping to promote the sale of u.s. produced goods in things that do not endanger u.s. national security, cosmetics being one. different consumer products. this is an important part of the commerce secretary traditional role. we saw gary locke, a former commerce secretary go to china and beijing as ambassador during the obama administration. this is something i know secretary raimondo has been looking to do for a couple years now. finally this week she is getting to set foot in beijing and shanghai and promote the interest of american companies in china. where there any major deliverables or takeaways from the trip?

eric: absolutely. some people have focused on the fact that there were perhaps not any major announcements in terms of, you know, new giant sweeping agreements are things of that nature. but just to the fact of the commerce secretary being able to go to china and speak frankly with chinese authorities about issues such as export controls, such as the tariffs the u.s. has on $300 billion in annual chinese exports to the u.s. meta-touch on some of these things. micron, the semiconductor maker that was banned by china in may. this is something we asked secretary romano about in detroit during trade talks in may. she said this was unacceptable and it was something she raised with the chinese authorities. these are really important discussions she is having in china this week. shery: bloomberg international economics reporter eric martin their beard also visiting china this week is u.k. foreign

secretary james cleverley who sought to put u.k. ties with china on a more even keel after a rocky few years in which the relationship was damaged by covid, clashes over hong kong, and suspicions about chinese involvement in critical british industries. cleverley raised the issue of human rights in all his meetings with beijing and also explored common ground on global issues. secretary cleverley: my visit here is about the bilateral relationship between the u.k. and china. in my meetings, both here and in previous meetings in the u.k., i have said that russia's brutal invasion of ukraine cannot be justified by moscow or indeed anywhere else. haidi: other stories making headlines around the world. drone attacks hit multiple parts of russia. ukraine's counteroffensive is underway. at least four military planes

were damaged and russian air defense claimed they shot down drones in regions including your moscow. the strikes come as the ukrainian capital came under an aerial assault. north korea testfired two ballistic missiles a week after a satellite launch failed for the second time on -- in three-month. south korea's military said they were fired off the east of the peninsula. they looked to have landed outside of japan's exclusive economic zone as the u.s. and south korea kicked off joint military drills, a move pyongyang called a prelude to an invasion. there's more to come on daybreak australia. this is bloomberg. every business deserves a great deal. that's why comcast business is launching the mobile made free event. with our business internet, new and existing customers can get one year of unlimited mobile for free. it's our best internet. powered by the next generation 10g network and with 99.9% reliability.

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shery: concerns about chinese economic outlook are growing and we will get more data today, more clues about where to headed. the official pmi numbers for the manufacturing gauge expected to contract again after four sessions -- four months of contraction already. the nonmanufacturing gauge already filled to around 51.5. it will contract even more. or, it will ease the acceleration, putting it closer to the expansion/contraction threshold of 15. we see that interior ration in eco-numbers out of china. we were expecting the summer travel season to help the nonmanufacturing side of little bit with services boosted. all in all, given the housing slump and other issues broadly in the chinese economy, that's not enough to offset all this negative data. haidi: yeah. and our next guest has interesting views here. china beige book's august data report showed parts of the economy on track for a rebound

this month. shehzad qazi is managing director of china beige book international. reading this report i cannot help feel that you are looking at perhaps a different economy to the one we have been looking at it. why the optimism? it's pretty broad-based too, looking at factory data, resilience in that consumer, retail sales, even seeing a pretty sharp jump in loans that we know missed the bloomberg target last month by about 50%. shehzad there is --shehzad: there is a dangerous consensus now that china is on the verge of collapse and the first thing these data made here is that is not the case. in all the doom and gloom going on now markets are overlooking the fact that if you look at chinese consumer spending towards the travel and leisure sector, towards chain restaurants, dining out components, that's actually continued on a pretty strong trajectory all summer long. you are even starting to see some improvement on other goods

such as furniture and appliances and cars and so forth. luxuries. the big problems remains the property market where you have very serious weakness. i think that is overshadowing some of the positive news in the economy now. shery: when it comes to the biggest criticism, obviously, the concerns of the property sector are a major elephant in the room. more broadly there are structural, demographic long-term challenges for china, right? do you pick this as a cyclical stall down -- slowdown that can be reversed or structural where we will see slower growth as the new normal here. shehzad: a little bit of both. there is no question that there is a structural slowdown happening. as we have discussed before, 5% growth should absolutely be worked into models as we think

about projecting china's long-term gdp. that said, yes, we are seeing a little cyclical slowdown in parts of the economy. the property market is in a multiyear restructuring phase. i think that we get that property news, -- bad property news, more problems with developers at least for the next couple years. we still have not really found the floor in property prices either. i think investors should brace for more bad news ahead over here. shery: of course we have heard the slew of measures announced by beijing including the potential reduction in rates in existing mortgages. how much will all this help the chinese economy? shehzad: i think these are marginal measures being put into place. then of these will be the silver bullet that will automatically turn things around. probably by the end of the year, maybe early next year we will begin to see some of the impact from the changes around mortgage policy. policy, by the way, has been increasingly supportive all year

long, but it has not led to a shift in sales with home sales picking up or price is starting to rebound. that is what we have been on the lookout for. i think the moderate action we are getting out of the government will have a moderate impact. but nothing will change overnight. haidi: how will you get chinese households to spend? shehzad: the banks are trying. but, the fact is we will not get any kind of fiscal stimulus measures on the household sector. that means when the economy finally rebounds, this article rebound we just talked about, i think that you will start to see consumer confidence return. and, consumer spending on more things than just the summer items we discussed like travel and so forth. actually, broadening out their spending base and ultimately getting into the housing market with people just otherwise sitting on the sidelines now. haidi: the housing market has

deep structural issues, though. i wonder how close you think the risk is of a deflationary mindset being embedded here, with both the households and businesses? shehzad: yes. that's a long-term challenge for china. i think that will continue to weigh on the economy for sure. it will continue to weigh on investor sentiment for sure. on the other side, of course, as you mentioned, we are seeing another big bout of drops in interest rates and finally we are seeing substantial jumps in corporate borrowing. some of this monetary stimulus is in place. the flipside of an inflationary or disinflationary environment means you have more room for monetary policy supported. having reached that turn do we now get consecutive months of better corporate borrowing and a stronger economic picture in the

final months of the year or not. -- or not? shery: given the weaker you want --yuan. how much does it hurt the spending power of chinese people and make a difference in net benefits for the economy? shehzad: obviously it's a big concern for the government. they have been intervening pretty aggressively for the last couple months or so now trying to put a floor under the yuan so it doesn't fall further. does that help boost exports a little? intentionally. but the long-term is obviously a big challenge, no question. haidi: shehzad qazi good to have you back to managing director of china beige book international. let's stay with china. pmi data is due later today and could also be setting the tone for markets. well into september. at about joins us -- annabelle joins us with a preview in hong kong. bloomberg economics is pretty bearish. annabelle: right.

more bearish than the average consensus forecast. again in more detail the headline manufacturing pmi is coming in at 48.8. in august the consensus is for 49.2. nonmanufacturing pmi coming in 50.5 that consensus there is 51.2. we saw that for the nonmanufacturing pmi, the fifth straight month of contraction. why bloomberg economics is saying this is because they are acknowledging yes, we saw pretty robust spending. we have been talking about better services spending over the course of the holiday months. strong demand for travel, hotel, and other leisure activities. they are citing the persistent weakness we are seeing in demand from home and abroad showing up in exports numbers. this is really what is driving their view. it is generally quite downbeat on the economic outlook. look at the estimates. both expected to deteriorate

from the month of july into august. this is something policymakers are watching closely. haidi: the pmi numbers. will this change the outlook when it comes to how investors are feeling? annabelle: they will be closely watched. these ones, as a forward indicator, can set the tone over the next few weeks. we have certainly seen investors very much full funds out of the market over the past months as more economic signals started to mount a year. this chart is looking at those. the northbound stock connect flows over the course of august. we only had four days of inflows during this time. this was a record amount of foreigners taking their money out of the market. but you were just discussing the reform measures that came through over the course of the week. some in the market are saying this is actually starting to lend a sense of stability to the stock market.

they are some of it -- having some sort of at least sitting a floor for how low equities can go from here. it seems like 300 is around 2% so far this week the best we have seen since july. let's look at what investors are saying. saxo says given the downbeat narrative that has been so present in the stock market we could see investors finally returning in dubai with a sense of fear -- in to buy with a sense of fear of missing out. we could see biggest stimulus measures citing light positioning. tracking better earnings. we monitor those for the tech sector in particular. still there is a need they say for bigger structural reforms. shery: let's stay with china because there is a lot to digest. whether it is economic data or earnings. tons coming out this week. china pharma voncannon now saying first-half profits now fell 19%, showing developers

with some government support our vulnerable to the housing slump. the dip in the six months to june compares to largely flat growth for 2022. vanke has no plans to ensure dividend payout and its chairman says current market conditions were worse than he expected. two of china's largest banks say first-half profits rose slightly as industry margins narrowed. the icbc says net income was up 1.2%. the bank of china's profit was up .8%. chinese lenders are under pressure to boost business activity and consumer confidence as economic growth slows. the government directed banks to cut rates on mortgages squeezing margins even more. prudential wants to boost the gauge of profitability of new insurance policies to as much as 5.4 billion by 2027. that's more than double compared to 2020 it implies an annual growth rate of up to 20%.

its ceo is ramping up his strategy as he settles into his new role and promised to write a new chapter of growth for the firm. hear from the man himself about how he plans to boost credentials new business profit here on bloomberg later thursday at the times on your screen. haidi: coming up, hereby a key nvidia partner believes they are frenzy is far from over. our exclusive with the key ct president -- q ct president mike yang is next on bloomberg.

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(we did it) start today at godaddy.com haidi: soaring demand for ai supercharged shares of nvidia and provided an ever bigger boost to the stock price of its partner quantum computer. mike yang, the president of qct told us exclusively about the collaboration with the tech giant and why he thinks they i boom can last. mike: i think, the record was 2015 when jensen came to quanta. at that time we actually collaborated together to develop the first gpu ai server.

we started journey because of our chairman. he is very much interested in the artificial intelligence. he is a visionary. i think even he is talking about ai not just because of how in 2015 jensen came from us, but also because, starting from almost the year 2000. based on this, we start the journey. each generation of nvidia's gpu server. the most important thing is we also work to contribute a lot back to nvidia. >> you mentioned the partnership goes way back before the ai boom. did you proceed -- foresee explosive growth was going to happen or did it exceed your expectations? what surprised you the most?

mike: we have actually been waiting, waiting, and waiting. in this industry i think investing in certain technology for 5, 10 years, i think that is pretty normal. pretty normal. so i think our investment into ai, the real, from my perspective, the real investment , that actually starts from 2015. i think less than 10 years. so i feel good. also, the point is, the generative ai is actually not adopted by microsoft, but also, light, currently, by facebook. google. amazon. you know, they are actually there. it is around us within one year. everything coming out. so, i believe this is really not a spotlight.

it will maintain. you will see it will keep getting stronger and stronger for the foreseeable upcoming years. yvonne: i want to talk to you about computex. the nvidia founder came to taiwan. he personally came to your booth. it was a great moment where you got to where jensen's leather jacket. first, how did that moment happen? mike: it was not arranged. it was also a big surprise to me. yvonne: did he offered to you or did you ask? mike: no, he offered it. that is also amazing. originally we just invited him to join us because of how we collaborated first on a new

architecture of the gpu server. so, we just invited him. hey, come over. this is our first one. look. yvonne: you said it felt quite heavy? mike: quite heavy. nowadays a leather jacket is usually a little lighter. but no, he has a very heavy one. i think because he is also a heavyweight. shery: qct president mike again speaking to our colleague. apple is testing the use of 3d printers to produce the steel chassis used by some of its upcoming smart watches. for more chief technology correspondent mark gurman joins us with the latest. mark, i cannot help but think about who supplies this. will this impact to the broader apple supply chain? mark: it will definitely have a long-term impact on the apple supply chain in terms of how components are sourced, how

components are built. they are starting with enclosures. the enclosure is basically the entire exterior of the apple watch. it is the biggest part, one of the most significant parts. they are using 3d printing machines to print the enclosure. they are using recycled powdered metal. they are printing that using a process that makes it feel and form into actual steel. they are building casings out of that. it obviously saves a lot of metal. instead of cutting blocks of metal, sheets of metal into form they print it into form. so you are saving a lot there moneywise, timewise, environmentally. this is something that eventually over the next decade could expand to many types of enclosures for other apple products. haidi: now we have a date that's very exciting. what are we expecting in terms of the new devices launching the next few weeks? the preorders? where their surprises in the lineup?

mark: september 12 is when they will be holding their new event. apple has not said what will be coming in the launch. it will be four iphone 50 models , the apple exit series, the apple nine watch series two and new airpods pro. on the airpods and the phones they will move to a u.s. pc charger to compete with the european union and regulations in other countries. the apple watch will be a bit of a performance boost. the 15 pro phones will be significant with a new titanium shell. a new, thinner border around the display. a new three nanometer processor from tsmc. a deeper, wider range of zoom. on the highest, the iphone promax, that will be significant. double the amount of zoom without degradation. overall it it's a myth against -- it's a significant lineup of devices read nothing game changing. what we expect, but it's

necessary for apple to keep the drumbeat going into the holiday season. haidi: mark gurman is our chief technology correspondent. tune into bloomberg radio to hear more from the day's biggest newsmakers and get analysis from the team broadcasting live from our studio in hong kong. more ahead. this is bloomberg. this is bloomberg. when it comes to getting your flu shot, cvs is pretty... flex. wanna schedule one online while prepping dinner? gravy. avoid the wait by scheduling for you... ...or the whole crew. or if you prefer to just pop in? do you. and if you wanna even tack on a covid-19 vaccine to your flu shot, feel free! and speaking of free? our flu shots are... well... free. really? yes, really. healthier is getting a flu shot on your schedule. cvs. healthier happens together.

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president biden: it moved over land then shifted to category one but it is still very dangerous was when 75 miles per hour. the impact of the storm is being felt throughout the southeast, even as it moves up the eastern coast of the united states affecting georgia, south carolina, and north carolina. we have to remain vigilant. shery: president biden on hurricane dolly pop that hit florida rated as a category three. it is now going through georgia. it's a tropical storm after knocking out power in florida grounding more than 1800 flights. the spring in abc's ikea georgie -- ike ejiochi from tampa. i: according to the national hurricane center hurricane i

dalia made landfall around 7:45 this morning near keaton beach. tampa felt a lot of impact from the storm. we saw so many things happening from the storm in terms of strong wind knocking down trees, downing power lines. we saw the storm surge mixed with the high tide to bring up a lot of debris from the coastline and the beaches. so much debris washing up from that. one of the major things we are seeing now is flooding. we have seen it at the hospital here in tampa where they erected an aqua walk to protect themselves from the surge. other houses and buildings in this community were not as lucky. we know that you need urban search and rescue teams have been out in the community in tampa trying to help residents that are apparently right now trapped in their homes because of five floodwaters inundating the entire community forcing a lot of people to be trapped in

their homes with water not only encompassing their house, but in many cases actually going inside their houses and flooding first or of their building. we are seeing a lot of people now wake up from the aftermath of the storm still trying to deal with the effects in terms of all the debris and damage hurricane idalia left behind. haidi: how has the storm changed through the course of the day? ike: well, essentially what we have seen so far through the course of the day is a slow return to normal. earlier this morning, according to florida governor ron desantis, almost everything was shut down. restaurants were not allowed to open. other businesses were not allowed to open because the floodwaters were still so prevalent throughout the communities. and there was law enforcement and emergency crews blocking roads, streets, and even some portions of interstates throughout tampa. right now we are seeing a complete reversal. hurricane idalia is currently no

in georgia and the carolinas affecting that area over there. here we are seeing a return to normal. jim's, grocery stores, even restaurant starting to reopen breed even the restaurant we are right now. they have been setting customers for a couple hours now as people slowly get back to normal from the effects of hurricane idalia. haidi: abc's ike ejiochi in tampa. hong kong is on guard for a typhoon. storm morning three, the second lowest. the super typhoon was last spotted edging east to southeast of hong kong and we are watching that closely through the course of the day. much more to come on daybreak. this is bloomberg.

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