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daybreak asia. we are counting down to the major market opens. haidi: top stories this hour, asian stocks are set to track of wall street rally even if it keeps rates higher. the euro slipping in the midst of the ecb -- ecb. soaring 25% on its trading debut after the biggest ipo of the year, a win for softbank and broader equity markets. the pboc cuts china's bank reserve requirements head of data that may show the growth slowdown bottoming in august. shery: we start off again news out of peru. the central bank, as expected, had cut the key rate to 7.5%, to 7.75%, the first rate cut from the height of the covid 19 pandemic, the first time since 2020. we have seen inflation start to slow down to the slowest facing, two years at a time when the economy in peru has entered a recession.

, remember peru is suffering from bad weather associated with el niño. they are a big exporter. we have seen this monetary easing trend across south america, the two biggest, brazil and chile have eased mexico and colombia could be next. peru has cut its key rate to 7.5%. take a look at how markets are trading. we saw u.s. futures muted in the asian session after we had gains for the s&p 500 past the 4500 levels. we're reacting to strong eco-data, which included retail sales and producer prices, raising hopes that perhaps u.s. consumers are not doing too badly. we might be able to achieve a soft landing. we're watching the auto sector underperforming. the detroit carmakers are facing the threat of a strike. the high was around the arm trading debut jumping 25% after raising almost $5 billion in

this year's largest ipo. take a look at wti prices, above $90 a barrel this november. this, coming at a time when we are seeing the supply outlook start to tighten. haidi: china's pboc, thanks for the second time this year, it is cutting, coming after data that could show the economy could bottom out. bell, we have another rrr cut, freeing up liquidity does not mean we will see appetite for borrowing necessarily. annabelle: we have seen a lot of capacity for banks to lend. but it has not been the demand coming from businesses and from individual households. the focus today, very much on the rrr cut. it took some in the market by surprise. a signal via local media. but it is significant because it is the latest to what the

policymakers are using to stimulate the economy. i'ts -- it is another step to get the more capacity to lend in the market. the rrr cut that takes place on friday was announced. thanks will have to hold 7.4% on a weighted average, a 25 basis point reduction. the reason for doing this now, it relates back to bond issuance in the country. local governments are coming against a deadline that is in september to issue this quota of a special bond. bonds that are used to fund local infrastructure projects. thanks are the ones that dominate -- banks are the ones that dominate the china debt environment. when you have a lot of debt issuance coming out, liquidity becomes the big issue. that is the big problem the pboc is trying to solve. shery: some are saying that could lead to the pboc delaying rate cuts. we are expecting the one year minimum lending facility announcement today. but also, activity data.

what are we expecting? anabelle: that's right. it's going to be interesting. there are others in the market saying we could see, even with a cut on the rrr, that one year rate in focus. perhaps a basis reduction, essentially that data that is due out later shows the economy is moving past the worst. you can see the industrial output expected to improve a bit. retail sales as well. put it in the context of what happened in august. we were at the end of the summer period, we saw a robust travel numbers in terms of spending on travel, hotels, that was one of the writer spots, manufacturers as well. that was the first time in five months. there was that rush for more special bond issuance we were talking about from local governments to fund infrastructure projects. that helped the construction sector activities.

there were better spots in the economy. we could start to see bottoming out coming through. another reason, to your point, that policymakers might want to wait a bit longer before they start to roll out any sort of easing. shery: annabelle with the latest on the chinese economy. we could be seeing asian stocks following the u.s.. we have provided bets that the fed will engineer a soft landing. let's ring in an executive editor for asian markets. paul dobson. we had trading in the u.s., a bit more positive, but at the same time we have tons of data coming out of china. what will investors be focusing on? paul: i mean the trading session yesterday in the u.s. was remarkably positive. also in europe for that matter. i looked at the euro reaction, the bond reactions to what the ecb was doing.

it looks like it was an allergic reaction, a referendum on the economy. maybe markets do not like it. but european stocks finished at 1.5% higher. taking the idea that that is it for ecb hikes, and from now on we will plateau for a period of time, but not go any higher and eventually start to come off again. which is exactly what people are expecting for the fed as well. that global environment, where things can be a bit easier, we can start to look forward to it at a time when the pressure from interest rates starts to ebb again. maybe markets can take that as a positive. coming back into asia, it's going to be important but, for all of that, the sentiment in the market seems to have turned. people are looking for more optimistic slumps on everything coming through. we know that there is -- there is still stimulus from chinese

authorities. haidi: our executive editor for asian markets, paul dobson. we will see how markets react. plus the china data dump is key. also watching some of these tech stocks. we have more on the open for the softbank backed arm, jumping 25% upon starting trading in new york. the chip designer ceo telling us that he is bullish about the growth prospects of the company. >> we have a unique business model that gives us the ability to have a good vision in the future, in terms of when people use our products. relative to our competence and the outlook, we have a very high confidence that the growth. . rate will be sustained. haidi: let's get more from bloomberg. we spoke to one analyst, who said he is surprised, positively surprised at the open given that the sentiment seemed muted

according to the pricing. what was the immediate reaction and how we can see the stock trading going forward in the weeks to come?. going forward -- michael: going forward it seems like a solid company, has a long record, it is not a startup. so, it looks well for it. ai is one of its main that's will -- which will be a growing area. the ipo itself, n some ways was surprisingly undramatic. they priced at the top which was good. we have reported that no was said, not to get a few extra dollars out of it. theyu got a good -- they got a good solid one quarter increase, 25% pop on its first day of

trading. they hit the right tone on a day in which the markets were up, which is good luck for soft ink and arm -- softbank and arm as well. shery: one of the business prospects for the company? we see the broader global chip industry slump. >> there is -- it helps to design the chips used in just about every cell phone and the planet. that is a solid business. obviously it is going to keep going. one thing reported is that there are at least one analyst put a hold rating on it because while arm has benefited from the control it has over the network of its businesses, there's more alternatives coming to market. there is less certainty. ai is a promising area. but it will be competitive and perhaps more competitive than what arm has faced so far.

haidi: bloomberg's editor on the u.s. steel steamm joining us -- deal's team, joining us. so much hinges on how the stock trades in the next month. we have breaking news when it comes to sino ocean. we are hearing despite ongoing efforts to get credit extensions, the groups liquidity is going to be confronted with challenges in the short to medium-term. we're hearing the suspension of trading on offshore dollar denominated securities as well as the optimal path for being identified as an "holistic restructuring" when payments of offshore debts will be suspended, they will continue to negotiate with the various stakeholders. they have appointed houlihian as the advisor and sidley austin as

a legal advisor, ensuring fair and equitable treatment to provide a sustainable capital structure. we got the latest update. an affiliate of the state backed developer of ocean group failed, for further extensions to a yuan bond, at a time when we have seen so much pressure on these chinese developers at the likes of country garden, as well as the downturn in the china's property sector continues to take hold. we are hearing that sino ocean has appointed advisors for a restructuring. that is the backdrop as we get into the start of trading. this friday. there is upside, given that we have had strong economic reports in the u.s. suggesting the economy may be able to engineer a soft landing, even if rates stay on hold, higher for longer. this is a picture across asian equities. the future session.

sydney futures looking positive. we could see a pop at the open. we're watching, in terms of how we see trading in the aussie dollar and other assets, it comes down to how bad or how good those chinese domestic activity numbers come in. shery: right. still ahead, disney is said to fall short of its streaming subscriber targets by the tens of millions. plus, talks of potential abc sale later this hour. ♪

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to guide you through a changing world. ♪ >> we are more or less in the range for treasuries that we are going to see. if rates do move up, i don't think it is going to be because of the fed, it will be because of the fiscal dysfunction in

washington. even though the fed is very powerful, it is not the only driver of rates. fiscal policy is also a factor. shery: that was global economic advisor and the former fed chair. our next guest thinks fiscal products are stimulating the u.s. economy, let's discuss with the former dallas fed president, he joins us in our new york studio. always great to see you. you have called this an artificial stimulation of the economy. does this mean we might see a hawkish pause next week? that is what your former colleague seems to think. >> i agree with richard. we will see a pause next week. however, the economy is resilient heavily because of fiscal spending. unspent american rescue act funds, inflation reduction act, the infrastructure act. because of that, the fed is going to need to leave its options open. and guard against a real -- we

acceleration of inflation or inflation being sticky. shery: it doesn't help that oil prices surge. >> the second big issue is oil prices. we've got to policy issues that are affecting this, structural issues. we talked about fiscal policies, aggressive. the second is our energy transition policy, limiting fossil fuels in the u.s., but the problem is that we have an under supply mobley. so -- globally. i think we are vulnerable with price spikes. we actually might mitigate that. but the fed has to contend with it. oil prices feed through everything in terms of goods and services. so if you have a higher oil prices, that means inflation is likely to be stickier. shery: we are also seeing idiosyncratic risks to the

economy. e're facing but -- we are facing potential strikes and walkouts, against the detroit carmakers. this year has been pretty outstanding in terms of work stoppages. are there broader ramifications the fed has to consider? >> you have a tight labor market. again the government is spending on manufacturing projects and infrastructure projects, increased demand for labor. so labor is in a good negotiating position. when they are in a good position and inflation has made it harder for workers to make ends meet you are going to see more of this kind of labor action. haidi: you talk to us about this x factor. how restrictive is policy at the moment? how do you gauge that? do you think it is restrictive enough, if not, how much more do you see needing to be done? >> the best way i can talk about it is, i like to use, not

surprisingly -- which is running above 4%. let's say that is a good estimate of inflation. the fed's friends -- the feds funds rate is a quarter and a half. rates are 125, 150 basis points above the inflation rate. i would have said the neutral rate is something like .5 2.75. we are restrictive, but not that restrict of. if inflation starts to come down, we will be more restrictive at this rate. but, the issue, again is, you've got some cross currents and distortions to some extent because the amount of the government spending. i think -- i think we are going to see -- inflation will soften down to 3.5%. we'll find it very entrenched and sticky and hard to get below

3.5. haidi: entrenched and sticky? >> it's the fact that we have a very tight labor market. we have higher oil prices. we've got government spending that is offsetting to some extent. monetary policy. so, workers who make $50,000 unless are struggling to make ends meet. i do believe we have a bit of a wage, price spiral, particularly for workers that make $50,000 or less. that is 50 million workers. they need higher wages. haidi: how does u.s. economy -- and probably more so, the economies in asia that are more vulnerable, how do they deal with if we do accept that we are entering a period where slower growth for longer will be the new normal? >> well, china for the last 10

years has been a big percentage of the increase in global growth. china being weaker means global growth is weaker. it means goods sector in the u.s. and around the world will be weaker. it will tend to contribute to disinflation. so, that is a factor. the truth is china has got a demographic, an aging issue which we also have two a lesser extent in the u.s. the we have in europe. we are dealing with -- we think where too many workers. now the issue is we don't have enough workers. we are aging. and we are finding that a lot of growth is quite have to come from productivity improvements, because we don't have labor force growth. china's dealing with that. we are dealing with it in the u.s.. it means that global growth is going to be challenging and productivity is going to be he. -- key. shery: when does the fed take

into account overseas markets and economies. remember when secretary yellen made a u-turn in terms of policy because of what happened in china. now, we are potentially seeing a european recession on the horizon. >> i think they are already taking it into account. the reason, is, the weakness in china is flowing through to the u.s.. you see it in the good sector. we have severe overcapacity in china. if you are a manufacturer, yet the contend with that. that is why we are seeing goods disinflation in the u.s. the sector were struggling on in the u.s. is the service sector. a lot of the government spending are referred to stimulating manufacturing projects but it bleeds over into restaurants and airlines and the service sector. i think that is an issue we are dealing with. china weakness and european weakness are already affecting

the u.s.. haidi: as a policymaker, looking at china, what more can they do? what would you do if you had the decision to make. >> so, their issue is demographic. they also have a lot of government debt to gdp as does the u.s.. they have it very severely. i'm confident they will stimulate. they do not have an inflation problem in china. so they've got room to stimulate. i would guess that they are going to. the only constraint is there already is a country highly leveraged. i think you will see them stimulate in order to try to jumpstart growth. but, the headwind they are facing is that labor force growth is likely not only to be week, but their population is likely to shrink over the next 20 years. the u.s. is growing at least.

we are just growing slowly in terms of the labor force. china's likely to shrink. that is a big policy issue they will have to deal with. it will be a headwind for growth. shery: we already saw them try to stimulate this week with the rrr cut. thank you so much for joining us, the former dallas fed president. you can get a roundup of all the stories you need to know to get your day going in today's edition of daybreak. terminal subscribers go to dayb . you can customize your settings so you only get the news on the industries and assets you care about. this is bloomberg. ♪

shery: welcome back. here are some of the top political stories. the u.s. government believes that chinese defense minister is under investigation and has

been stripped of his responsibilities, according to the financial times, citing u.s. officials and people briefed on the intelligence. the report does not say what led the u.s. to conclude that he is under investigation. he was last seen in public late last month. republican lawmakers in the u.s. have called on the government to completely cut off huawei from its american suppliers, after huawei watched its phones using advanced chip technology. the unveiling has stoked debate over its attempts to contain china's growing tech. they are already under partial u.s. sanctions. the u.s. president's son, hunter biden has been indicted on federal charges of lying about his drug use he bought a gun five years ago. it follows the collapse of the deal under which biden would plead guilty to a misdemeanor

tax crime. and took knowledge a firearms violation without a conviction. the indictment means he could go on trial during next year's presidential race. take a look at how we are setting up or the trading session. we're seeing pressure on kiwi stocks. pressure on most of the week. there was a rebound yesterday. futures pointing higher. we have been watching the aussie which rose on those employment games in august. a softer u.s. dollar. nikkei futures also pointing higher after the yen, continue to trade at the 147 level. so become, -- is still 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.

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shery: welcome back. more signs of financial stress in china's property sector.

the developer sign ocean's ending payments of offshore debts until the holistic restructuring is implemented. moody's has revised outlook for china's property sector to negative from stable, a weaker economic growth prospect and homebuyer's concerns over project delivery. bloomberg originals has explored holly -- how the real estate sector became a mess and what the trouble can mean for the global. economy. >> deserted shopping malls, half empty apartment complexes, abandoned construction sites, all signs of the crisis that has gripped china's property line. >> in the early 2000's there was a construction boom here. there was a belief that property and prices could only go up. >> china's developers would launch a project for presales, get the money from the homebuyers and immediately invest the money into new land

parcels. it all worked fine, until it tumbled. >> china's property market is in a bunch of trouble. because property is the single biggest contributor to china's gdp. the property sector is in trouble, then the rest of the economy is in trouble as well. >> if china's economy stumbles, the global implications will be far-reaching. shery: bloomberg's john liur there, can watch the documentary online and on youtube. for subscribers of the terminal and at bloomberg.com. let's see how we are setting up across asia's markets. anabelle: it is going to be a big focus on china in the session. you mentioned the sino ocean headlines, suspending its offshore debt payments. we have $1 billion due in debt for the developers. you can add to that -- the

concerns that perhaps we will come through with it in the monthly activity numbers. you could see bottoming, the property sector is likely to remain in an overhang. there are brighter spots. the big one we have seen over the course of the last day is this surprised. this rrr cut form lenders -- for lenders. banks will be required to hold 7.4% on a weighted average, a reduction of 25 basis points. i mentioned the monthly activities, that is futures. let's change on a look at the activity numbers. the big moves we will be watching is in industrial output. can see the estimate for a slight tick. retail sales at a half a percentage point gain predicted by analysts in our survey. it's one big fact we are watching, given what we had over the summer. travel period, a lot of strong numbers in the hotel, in the transport numbers, that were

brighter spots to what we have been watching those numbers ahead. haidi: our next guest, expects economic activity in the day we get today. these long-term headwinds remain. let's ring in the asia-pacific head of research and chief economist. great to have you with us. we may see a bottoming out. that would be some semblance of risk might for the chinese -- respite for the chinese economy. we just saw the announcement that sino ocean will undergo a restructuring. we see the pressuring -- pressure on these major developers. can they fix the property market? if they can't do that, then the downside for the broader economy will need to spread. >> yes. indeed. the housing is still very key in terms of stabilizing overall growth.

given broader demand measures they have announced in the past few weeks, i believe they will do more, i think for the housing sales and demand, it is likely we could see stabilization. but that may not last very long. the structural problems in which the housing is still there, the best we can hope for is an l shaped outlook for the housing and for the overall growth. haidi: we've seen the rrr cut, gathering up more liquidity that may or may not be taken up by bowers -- borrowers. can he stimulate your way out of a structural slowdown in china? >> that is the point. they have not announced anything so substantial in terms of easing. they prefer an incremental approach. the strategy here is really to stabilize growth to buy time to do a slow deleveraging, rrr,

it's not so much about stimulating economies. it's about pushing the economy. as the interest rate cuts, if they don't want to see a big default, they only want to see massive defaults right off right now, they need to keep interest rates lower to give time to the slow deleveraging. shery: what are we expecting from beijing? some were saying given that we got this rrr cut again this year that that might actually delay an actual interest rate cut that they may want to see what the fed does for us. >> yeah. we also think it is more likely now that the rate could be kept unchanged today. it's not going to be a complete stop. the pboc needs to watch the timing continue the rate cuts which, if they do deleveraging,

that means the rate cut cycle will be structural for china. so, yeah. they have to continue to provide more support to the economy. shery: activity data. what are we expecting? could we see bottoming out? >> we do believe so. that is also our forecast. similar to the consensus, we are expecting production to recover a bit. retail sales to recover a bit. fixed income, expense -- investment as well. recovery is marginal at this stage. shery: what is your outlook for the yuan? i know so much of it is a dollar side story. >> true. our view has been the u.n. is going to be -- yuan is going to be under pressure as china is sorting out the problem. the pboc will have to keep the rates lower for longer. as a result of that, it is very

likely to see the dollar to go weaker and weaker. we have a forecast of 760 for the end of the year. haidi: i wanted to get your view when it comes to labor market. there has been concern when it comes youth unemployment. we know this is tied to social stability in china. are there any efforts you see that could restructure the labor force in ways that need to be restructured, given that we know the demographics are really changing? >> well, this is the consequence of all the week performance of the housing difficulties. there is -- it is difficult to see how to support what labor market. everything they do, to cushion the housing, it will be helpful. it will take some time with the

labor market. haidi: what do you see as the future growth trajectory? should other economies and the rest of the world be getting ready for the new normal of slower growth for longer out of china? >> yeah. that probably is the idea. at the same time you look at china's growth, two gdp growth, analyzed that was 3.2%. we do think that 3% is not too far from the structural growth china can have over the medium term. if we are talking about the next five years, if china, it seems that they are losing the engine of housing, infrastructure is a smaller engine. you take that out, basically china can growth straight -- go to 4%. the expectation change is more about getting used to it.

there may not be a strong recovery. haidi: great to chat with you. head of research and chief economist at societe generale. but a look at the health and consumer sector. check our exclusive with the ceo of yum china at 11:30 in sydney. this is bloomberg. ♪

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shery: it was an exciting debut for arm was -- which surged 25%. this is a boost for softbank. the ceo has spoken to us in new york and says the company is confident it can sustain growth. >> ai is everywhere. if it's your edge device, like the assistant, or alexa, or euratom his vehicle, that is all ai. we're seeing it in the cloud and data center. nvidia announcing their newest products that is based on arm. arm is everywhere. we have a unique business model that gives us the ability to have a good vision in the future of when people use our products. relative to our confidence in the outlook, we have a very high confidence of the growth rate we

have talked about will be sustained. >> how worried are investors of china. >> there are a lot of questions about china, given all the geopolitics. our business looks like the rest of the world. we have great growth in the data center, in automotive, china is on electric vehicles. it's been terrific for us. i have the same headaches every other tech ceo has regarding how to navigate through this. but no different. >> do you think that there will be more pressure now that your public again? you came to arm in 2013. you were listed at that point. it's 2016 since you have been. how is the game changed? >> there are some things we were able to do is a private company that will be different. earnings, making sure we had all of our commitments. arm is not a business measure quarter to quarter, you measure over decades. th long-term vision is somethinge i am passionate about and will drive the company the same private or public. >> you have key vested interest

whether it is your clients, apple tmc, how important are those voices? head of softbank, your on daily. >> one of the challenges is that the fact that we are everywhere. none of this works unless we play nice with others. we have to have a lot of engagement for partners in making sure that we are managing the balance, including our chief shareholder. >> do you think he lets the more of arm become public? >> we talk frequently. it's not about the day-to-day. it is about the long-term vision, the passion he and i have about the future and what this company can be long-term. i don't expect that to change. >> do you think you will go public in the u.k.. i am sure it has been bittersweet. >> we are in new york we are proud of our u.k. heritage. we are open to considering that. >> any timeframe? >> none that we can talk about

today. haidi: that was the arm ceo speaking to caroline hyde in new york after the chip designing -- designers trading debut. disney is expected to fail 4 million subscribers short of its target for 20 tony for. ou -- 2024. our editor joins us from los angeles. we know subscribers have been coming down as prices have risen. what is the new expectation being set? >> well, this product started 2019 going crazy right out of the gate. 10 million subscribers on the first day. disney raised its guidance to aggressively a few years ago under a previous ceo. they have taken it down once. in february they tickle --

february they took away the guidance. now they are anticipating it will be tens of millions short of the previous number. right now they are about 140 million subscribers. and they were projecting as many as 260 million by the end of next fiscal year. part of it is the price increases you mentioned. part of it is that they lost the cricket rights, which are critical to their half star product in india. it's been a competitive market. shery: could we see some sort of restructuring at disney? we are hearing that they may consider a sale of abc. >> yes. they have consumed s -- consider selling their traditional networks, abc, fx. also looking for investors in their sports business. there is clearly a shift to streaming everywhere in media. disney is seeing the traditional

viewers are marred rating -- migrating from the legacy channels. so, we reported today that there have been preliminary talks with next are, a large tv station owner in the u.s.. others are registered in the property whether disney actually sells it, they said they have not made any decisions. haidi: we are all looking to the content pipeline. we just heard over the last hour that hollywood studios is set to hold stocks -- talks with strikers. they have been on strike since july. what are the expectations being set? how far apart are the parties? as we get into the second half, always one in a sea platforms like disney, some of the big studios having to reevaluate what they will do. >> we're already seeing it. we have seen films that were supposed to debut this year pushed into next year. the actors on strike cannot promote the films. we've seen some delays and other

projects the fall season does not have a lot of fresh content. we're seeing an impact of the strikes. yes the studio said they were going to talk again with the writers next week. they had put together a proposal last month but the writers rejected. but it appeared like they were inching a lot closer to what the writers wanted. so, we will see what happens next week. shery: joining us from l.a.. let's turn to commodities. the oil rally is picking up seems with -- picking up steam. the latest milestone in a robust rally driven by saudi and russian uppercuts. su joins us with the latest. those cuts coming at a time of record oil consumption as well. su: the u.s. and china, the biggest consumers of oil. in the u.s. we have trucking back in full force. we are going into winter and oil prices are on the terror.

let's drop into the bloomberg. technically you've got what is considered a golden cross, a very bullish sign. this is what has helped technically drive prices, but also the underlying fundamental that this saudi and russian led production cut are being pushed to the end of the year. that really kicked oil prices higher. let's take a look at the chart. west texas intermediate, at 90 and moving higher. i asian trading it was up as most asn 2.5%. we have brent crude above 94. then, not only oil prices but also the fuel prices are moving higher. software diesel shot to the highest in three decades. u.s. gasoline prices are the highest in a decade seasonally and drop back into the bloomberg -- you are seeing a difference than earlier this year when oil prices had hit a snag to the end of the year when you're seeing the green boxes higher. those are weekly gains after weekly gaze. again, there's indication that

we could see a pullback, and be in an overbought position. right now, oil gains continue a pace. haidi: opec's top official, on shockingly is warning against battling fossil fuels. su: this is another war of words between the iea and the opec secretary-general. the iea saying that they believe that demand will plateau at the end of the decade. they believe that we cannot see the beginning of the end of fossil fuels. the opec secretary general saying cutting fossil fuels will lead to an energy chaos of a dramatic proportion. the iea and opec have been at odds with the iea recently criticizing the saudi's and the russians for extending their curb to the end of the year and creating a tight market which exacerbates the inflationary

situation we are dealing with. back to you. haidi: su keenan with the latest on oil. more to come on daybreak asia, this is bloomberg. ♪ fabulous surroundings... but everyone's looking at their phones for financial insights from merrill. is he hailing a ride to the concert hall?

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shery: the ceo of the investment management, are making a big change in how the economy is being financed. david hunt told us how private equity is taking over markets where banks is to do the majority of the lending. >> i would say that we have had a bit of a front row seat. we're at 300 billion in a um, probably the largest alternative management advisors. our footprint is different. we started with real estate and much more of a bent toward private credit. in fact, that has been what is growing quickly for us. it's been real estate debt, infrastructure,a nd some of the -- and some of the more specialized forms including private credit. what people don't appreciate is this is not just the short-term phenomena, this is a change in how the economy is being financed. if you go back 10 years, banks

did all of this, they did lending to middle markets, infrastructure, project finance. they are not putting money into these markets. so institutional investors are doing that, and it is being architected by acid managers. >> is more clients become -- as more clients become in that you have to come up with more ideas to invest in this. we were speaking earlier, one of blackrock's main divisions, he made the point, alternatives were just that. real estate, commodities, that's it. now it is so vast. i know you are exploring new businesses including something like reinsurance. >> the alternatives definition is much broader. if you look out five to seven years that an institutional investors portfolio, you are going to see a higher proportion in privates, a higher proportion in privates that are debt oriented, and you will see

fundamentally much more variety in the types of -- and strategies. let's take the one you mentioned, which is reinsurance. obviously, pgim owned by presentable, we have benefited from being able to invest in insurance liabilities backing that for 50 years. in the last 10 years the number of the private equity firms has figured out this magic. so, what we did last week is a big step forward in a new platform we're developing, to make reinsurance much more available to your institutional investors. haidi: david hunt speaking to romaine bostick. let's check in on some of the top corporate stories. ufa -- uaw president determined to hit all carmakers, as

targeted workouts are in several strategic states. theyy demanding a pay increase in retirement benefits, if the uaw and carmakers cannot come to an agreement, the union will strike at key plants. it will be the first time the union targets plants, have gone through all companies once. th rowee -- mgm has been hacked by the same group known a scattered spider, has a disrupted slot machines, reservations and websites across the u.s.. we have the market opens in sydney, seoul and tokyo, next. this is bloomberg. ♪ re 70. interesting. hm? it's both an electric and a gas car. yeap. quite the paradox. hmmmm? hmmmm? hmm?

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are counting down to the major market opens after more resilient data in the u.s., and exciting trading debut when we are setting up for more eco-data out of china. haidi: [indiscernible] likely to see not much improvement when it comes to domestic activity but retail sales out of china at least seeing a bottoming up. let's look at how the markets will take this. annabelle: coming in overnight come up a lot for investors to contend with this morning but we are approaching now the opens for japan, south korea, and south korea -- and australia. the focus is on softbank. the nasdaq jump to 25% overnight

and the question is when it will start trading. we are watching for live pricing on that as it comes through. shares of the chip designer, a huge rally but the company with the market cap around the $65 billion. stocks are looking to track the tailwinds that came through from wall street. the story revolves around eco-data. u.s. retail sales produced prices that they are picking up and that tells us the u.s. economy is still strong and that consumer is resilient. the fed might still need to hike but the expectation is that a soft landing could be possible so the nikkei 225 climbing at the start of trade. that is the picture for japan as we wait for softbank to start

trading but let's change on and look at korea at the start of the day because here is the focus on inflation. the south korean finance ministers said he these inflation stabilize from next month and that he is considering extension of fuel tax cuts if needed. they are in place until october but rising oil prices have been a hurdle for the inflation outlook in korea and we continue to see the climb for rent crude -- brent crude and wti extending above nine dollars per barrel so that saudi arabia and russian oil cut being felt in the market and that is the state of play as the kospi is fairly flat online. in australia the focus today revolves around central banks. some change at the top of the rba's. michelle bullock is taking over

as governor from phil lowe. his term ends today. the policy continuity is the focus. the picture of chinese eco-data is moving markets. rrr cut overnight. rate decision do later. monthly activities could perhaps tell us we are starting to see a bottoming out in the economy here so for that very sensitive economy for china and australia very much in focus haidi. haidi: our next guest says she is overweight japan and underweight when it comes to global stocks. the cio at the bank of singapore is joining us. great to have you with us. so much enthusiasm about japan and based -- at this time is a different scenario. is there further to run with the

rally given how far we have seen it come already? >> hello, everyone, it is great to see you. as far as japan is concerned, i think the bank of singapore revised the gdp numbers upwards to .1% and what has given us reasons for optimism is the recent data that has come through in terms of q2 gdp. it gives us confidence the reform promised is coming through the economic data. japan is at a turning point. across markets we have seen a rally on the back of expectations. nominal gdp now hit ¥600 trillion which is one of the highest we have seen in decades so this is a signaling more is to come as far as earnings growth is concerned i gives us

optimism about market valuations -- and gives us optimism about market valuations as well. paul: china can -- haidi: china could have a bottoming out when it comes to domestic activity indicators. do you see any evidence given how things are sitting? >> absolutely. china has been a very difficult market for many investors. we started the year with post-pandemic optimism and that has not carried through in the second quarter. but we have witnessed a strong focus on not just data but policy response. august data so far what has been released, small beads in terms of expectations but retail sales, industrial production, fixed asset investment data will give us some signals but it is important to focus on the fact

that since the july meeting, we have seen a whole slew of measures, easing of property measures and cuts in rrr and earlier in terms of lending rates in totality so we think that will boost the market. we have seen other capital markets form like the cuts and that takes time to filter through to real data, economic or financial, so we are patient on that front. growth for china is 5.4%. there is risk to the number and we are watching the data closely. shery: are you advocating for jumping into the chinese markets until you see the turnaround in the data? >> in china our approach has

been a selective bottom-up stockpicking approach. we see value in selected sectors, some of which are the quality youth sectors like telecom and financial to some extent and certainly we are looking also at the more defensive sectors and areas of growth where they will receive policy support, renewables, ev sectors, but we are watchful for the fact that we do see a need for some catalyst short-term. long-term we are positive on the chinese growth story and we think these policy measures will take time so that is a more measured approach. shery: for the longest time we thought china was [indiscernible] really the outlook for some of these developing economies

depends on what happens in china and that seems to have decoupled a little bit. what is the right waiting of china at this point? >> in terms of, i think china as a weight has been a large weight on s&p but we see a shift on we are cautious on the high yield space, property space, i think this is a structural issue in the property sector and then maybe some effects on other sectors like asset management companies and the local government financing vehicles so we are very cautious in that area. but we believe china represents opportunity in terms of investment grade space and as you pointed out it is a broadening of investment into

asia so in terms of indonesia, india, they are much more focused on the opportunities more broadly not just the emerging part of asia but japan and korea so we think there is a maturing of the fixed income investment landscape. i would describe it as a broadening rather than a shift. shery: we have that stellar arm trading debut and softbank extending gains of as much as 5%. what are your expectations for the tech hardware sector and the chip industry broadly across asia? >> i will not comment explicit -- specifically on the ipo but broadly on technology we see a

structural shift in terms of ai and the opportunities not just for tech but broadly in terms of application so the long-term structural shift to the semi conductors, but as far as valuations are concerned we think there are some stocks that are lofty at the moment in terms of valuations but we are looking through to the application and industries that will benefit from the ai revolution and at the conference there spend many panels discussing this issue, not just aspect growth area but areas of concerns about regulations so we are going to have to take a deeper look into the applications as well as whether the expectations as a market are realistic. shery: great to have you with us. for more on the arm trading

debut, let's bring in our technology reporter. we have heard they did not want to place the shares and risk a heavy debut. did it pay off? >> it seems like it is definitely paying off, at least after the first day of trading. given arm shares 25% jump i think there is a good chance softbank shares will climb today while booster by -- bolstered by arms performance and this would be good for softbank. softbank continue to own about 90% of arm and this 55 billion valuation falls right into the range of valuation they have been initially sinking -- seeking and this valuation has been viewed as quite bullish but the fact that arm made it to

that range, although we will have to see if that valuation level is maintained. haidi: how important will the next month of trading be? >> definitely arm continues to be one of the most important assets softbank owns and after their ipo, softbank has successfully raised almost 5 billion, which kind of adds to their growing cash pile of which they already have about 40 billion and softbank has indicated that they are coming out of their long break from investing and ready to spend money again so the fact that arm is doing really well also helps add credence to the view that softbank is ready to spend more money on other assets, which is

something we are very closely following. haidi: the latest on that arm ipo. let's get to annabelle. annabelle: we are seeing a lot of trading activity in tokyo. 15 minutes underway in the session. we have the asian benchmark climbing for tenths of 1%. gains broad-based across the session. not surprising because of the strong tailwind from the wall street session. it is possible the fed could engineer a soft landing even though the need for a hike is still in play and that is what we see as we get underway. materials are standing out. let's look at the numbers. gaining strongly at the start of the gay up 3% -- start of the

day up 3%. jp morgan the $23 mark. it could as well be a story of china data because we had the rrr cut come overnight telling us that pboc is serious about further stimulating growth and signals perhaps to come through in the monthly activity data that the chinese economy has started to bottom out and we are expecting those numbers in terms of industrial output, retail sales, that is the one to watch and then it is the constructions activity has looked like it is picking up, special government bond issuance from the local level is another watch given that we are approaching the deadline with a need to meet the quarter by the end of the month so certainly a group of stocks we are watching this morning haidi. haidi: still ahead we continue our lives coverage at the asia summit in singapore and we will speak with the singapore tourism

board chief executive about how the china slow is impacting visitor numbers. channel central bank is cutting reserve requirements ahead of data that could show signs of a stabilization in the economy and we will get a preview next. this is bloomberg. ♪ that first time you take a step back.

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that experience to the customer. as a finance organization that is what you want to do. ♪ explore endless design possibilities. to find your personal style. endless hardie® siding colors. textures and styles. it's possible. with james hardie™. shery: china's pboc has cut the reserve requirements for banks for the second time this year ahead of data expected to show the growth slowed down bottoming in august. let's bring in our asian equities team. james, how significant is the rrr cut and does it just delay

the actual rate cut? >> i think the main purpose of the cut is less stimulus and trying to help the banking sector. along holiday now which is generally a time for more liquidity needs from bank. -- banks. also increasing the number of bonds government was selling and most are eventually sold to state owned banks so we were seeing a lack of liquidity. some were having margins squeezed because they were forced to cut deposit rates so that will help banks in liquidity and margins and help them absorb the rest of the special bonds they were told to sell so in the sense that it

helps the market absorb the bonds that are coming is good for the stimulus effective the bonds and how it will help the economy but really i think it is more in the banking sector as opposed to stimulating demands directly. haidi: in terms of domestic activity numbers expected today, could this be the worst of it? >> that seems to be the expectations from economists ahead of the data that we will see a slight uptick in retail sales, and increasing industrial output, and you also saw that with pmi's and increasing factory orders for companies for the first time in a number of months so based on those numbers at least the industrial sector and consumer side of the

economy, it looks like we might see the start of a rebound or recovery from the lows we have been touching on over the year. the housing sector has not turned around any sense. there have been -- there was a pickup in sales and the net has fallen again. loosening up restrictions on housing sales have not had an impact yet and we will have to see but at the moment the housing sector data does not show any sign of recovery and that will be one of the things that is them -- [inaudible] shery: signs of financial stress in the property sector.

>> property developers have had a really hard time here and this is another sign of distress in the sector. it is dragging down the stock market and we have seen a lot of news lately on country garden and across the board there is still a lot of weakness and investor angst over where the sector goes. haidi: will that be tv preparing narrative as we get into trading today? will the rrr cut lift sentiment? >> i wish i could be more optimistic, but just looking at the numbers in the last couple of days and weeks, everything is very weak here.

foreigners have been selling chinese stocks, northbound flow bought a lot this year and peeked out in the summer and sold half of that since so that shows how wary investors are of the chinese stock market. there is just not a lot of upside here and i think the economic data will show people are looking for upside and growth and until we have a bigger measure i do not think there will be a lot of positivity in the market. we might see a short-term bounce but anything harder we would be hard-pressed. haidi: catherine and james, as we look ahead to that domestic

data dump. more analysis on the chinese economy coming up. this is bloomberg. ♪

shery: here are some of the top stories we are following. the u.s. government reportedly believes chinese defense minister is under investigation and has been stripped of responsibilities. that is according to the financial times citing u.s. officials. the report does not say what led the u.s. to conclude this. lee was last seen in public last month.

hunter biden has been indicted on federal charges of lying about drug use when he bought a gun five years ago. it follows the collapse of a deal in which biden would plead guilty to misdemeanor tax crimes and a firearms violation. he could go on trial during next year's presidential rate. -- race. it china has criticized the eu investigation into the country's electric car subsidies. beijing warns the investigation will impact their relationship with the eu and the eu says it is to protect jobs and supply chains at home and claims china is unfairly flooding the market with cheap vehicles. haidi: looking at how futures are trading in europe as we get into the open, it looks like we will have an uplift.

we saw european stocks jumping after the ecp received dovish hike and we have seen quite a strength in energy in particular and futures looking positive at this point, in fact euros stocks up 4/10 of 1%. we are watching some of the currency pairs after we saw the ecb raising 25 basis points saying the level would make a substantial contribution they are so we saw energy, real estate, utilities, financials, a broad-based rally and we could see that continue. zero sliding to the lowest in the march on the mind that the ecb is looking that dovish with the hike and of course we look at the divergence play with possibly the fed having more to do but also some of the reports

suggesting a soft landing is still possible. shery: we saw pressure to the euro and i think the other side of the trade was the dollar rallying and it got whipsawed after the ecb decision and then we had the release of stronger u.s. data and we are seeing more weakness for the korean won, the japanese yen holding steady at the 147 level and the aussie not a lot of change but keep an eye on the korean won, 1329. coming up, republican lawmakers demanding full sanctions on huawei and smic. huawei and smic. we have an dear moms and dads, what you have achieved here today is going to help us and our futures. it is why we're coming up on stage to collect your diplomas. mom, love you always.

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shery: softbank trading on a three week high and jumped more

than 5% at one point after the trading debut of arm which jumped 25% today in the new york session and raised 4.8 $7 billion -- $4.87 billion. it is 90% owned by softbank so the state of softbank has increased by $12 billion. our next guest says the company is confident they can sustain growth. >> ai is everywhere. alexa, your autonomous vehicle, and now the cloud and data center with all of the growth with nvidia. arm is everywhere relative to ai . we have a unique business model that gives us the ability to have a very good vision of the future in terms of people and products so relative to our confidence in the outlook, we

have very high confidence that the growth rate we talked about will be sustained. >> how worried are investors about china? >> there are a lot of questions about china in general given geopolitics. our business there looks like the rest of the world. we have great growth in automotive. china is huge for vehicles so it has been terrific for us. i have the same headaches every text ceo has in terms of trying to navigate through this >>. will there be more pressure now that you are public again? you have not been since 2016. how does the game change? >> some things we could do as a private company that will be different. making sure we hit all of our commitments. what you measure us over years and decades and the long-term vision is something i am very passionate about and will drive the company the same way. >> you have a lot of vested

interests. how important are those voices? >> one challenge with arm is the fact that we are everywhere, none of this works unless we play well with others so we have to have a lot of engagement with partners and make sure we measure that balance. >> would you like to see arm become more public? >> it's not about the day today, it's about the long-term vision, the passion we have about the future and what the company can be long-term and i do not expect that to change. >> will you go public in the u.k.? >> today we are in new york but we are proud of our u.k. heritage and we are open to considering that down the road. no timeframe i can talk about

today. i'm just trying to get through today a little bit. haidi: let's get back to annabelle for a look at the markets. annabelle: softbank is one of the stocks helping live to asian equities across the board today, more than 3% higher at this point but generally it is a risk on session in terms of equities today and that is also given the lead and for the wall street session because we had better than expected numbers coming through for key retail sales for instance one factor help tell us the resilience of the u.s. consumer is still there although it could be a need for further fed rate hike that is largely baked in at this point. the aussie session, we are up 1.5% for the asx 200, half an hour into the session. it is a china story because in the commodities space we see

more moves here. wti and brent crude climbing in the session after cuts but steel climbing more than 1%, copper higher, the expectation we will see perhaps china's economy started to bottom out in the latest activity numbers that are due, we also have further supportive moment -- measures coming through with the rrr cut and that is the state of play let's drill into material stocks in more detail if we change on now you can see a lot more than 4% that we did as well have j.p. morgan issuing a profit upgrade or price target of great on the stock to around the 23 $30 mark so certainly a group so we are watching quite closely in the session haidi. the financial times is reporting the u.s. believes china's defense minister is under investigation and has been relieved of his duties.

let's bring in our correspondent . we've been watching this situation for a while. he has not been seen in public for over two weeks. what is the latest? >> real major confirmation with the ft reporting on the u.s. side that they believe he has been stripped. no details about his probe. he just came to the top appointment. china sent him to meet lloyd austin where they shared just a handshake and not the meeting many hoped for. he is the son of a red army veteran and there are no direct close links to xi jinping that we know but in this -- with this robust engineering background, the backdrop of this is in july we had that shakeup in the military including the launch of

-- equipment procurement. he headed that department from 2017 through 2022 and there is no specific indication he's being accused of wrongdoing but there was the removal of other top generals of the rocket forest that manages the nuclear armament or china has so certainly all of this in the background has been creating a feeble environment rumors which the u.s. ambassador to japan has already hinted at. shery: this at a time where tensions between the u.s. and china are growing. in the u.s., letter calls from republican column -- lawmakers to completely ban huawei and smic. how significant is this? >> indeed. 10 representatives produced a

letter calling for a complete ban and saying they have not been able to enforce instructions so far but huawei and smic are being called for increased curbs and they have already been blacklisted, meaning u.s. businesses who want to do business with them have to apply for a special license and the concern is really all about the new huawei phone and the main in china chip that appears to be using u.s. technology. the focus is about the efficacy of these types of curbs biden has rolled out. haidi: because there are already existing u.s. limits on dealing with the companies. >> absolutely and that is the concern. the biden administration, this

has been reiterated on many of these trips, some have emphasized they are not trying to contain china and this is really about national security and strategic technologies so there is a question over whether the u.s. really wants to prevent china for example just producing a retail smartphone, if that is the end goal it has certainly not been the stated end goal of the biden administration, the issue i think is the huawei phone for some republicans indicates that there is a broader inefficacy of these types of sanctions and in order to restrict strategic intent, a more wholesale ban or cut needs to be in place. that is a much more sweeping escalation of the kinds of restrictions that are already out there.

shery: rebecca, thank you. up next, more from the asia summit. we speak with the chief executive of the singapore tourism board. this is bloomberg. ♪ the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com

is it possible to fall in love with your home... ...before you even step inside? ♪ discover the magnolia home james hardie collection. available now in siding colors, styles and textures. curated by joanna gaines. shery: china's domestic tourism sector has been a bright spot

for the mainland economy. outbound travel not so well. overseas tourism is far from pre-covid levels even as more flights become available. china is now the second largest source of visitors to singapore this year with numbers climbing. let's get the outlook from the chief executive at singapore's tourism board, joining us on the final day of the asia summit. great to have you with us. give us your take about chinese arrivals in singapore, and how much more recovery you expect in those numbers. >> good morning from singapore. thank you for having me on the program. china is an important market for singapore. china was our largest market in terms of visitor arrivals during the pandemic. three point 6 million visitors. also the largest generating

market in terms of tourism receipts. 4.6 billion dollars from chinese tourism alone. looking at this year so far, we received 800 70,000 visitors from china. that is close to 30% of what was registered pre-pandemic in 2019. for the full year this year we expect chinese arrivals to the 30% to 60% of what it was in 2019. in terms of overall recovery for china, statistics tell us, as well as our partners in the market, that it continues to be a strong pickup in terms of demand with robust bookings for outbound travel from china and china has consistently ranked among the top five markets for chinese tourists going outside of china. shery: broadly, outside of just

a chinese tourists come at the beginning of this year you were expecting 14 million visitors in 2023. are you want target? -- are you on target? >> the lifting of travel restrictions, opening borders, and release of tremendous pent-up demand, we are seeing a steady return globally and singapore has benefited very much from that. in the first nine months of this year we have welcomed 9 million visitors and we are very confident that we will probably close the year close to the upper bound of our forecast of 14 million visitors for the year and we will be on track in terms of achieving tourism receipt of -- tourism receipts. i'm wondering about the mix of tourist headed to singapore.

have you seen any change in the trends compared to pre-covid? >> i think we have always maintained a diverse civil -- diversified portfolio of visitors as well as emerging markets between business and leisure and this has put us in a good position to manage against the volatility and different disruptions across the portfolio . we have continued seeing a very strong return of business and leisure visitors and the top five markets that are responsible for bringing in tourists, it mirrors the same we have in 2019. haidi: when it comes to f1 we have seen early numbers for attendance down 17% from 2022 which was a record. are you seeing it more subdued this year?

>> absolutely not. we see there will be reduction in terms of overall ticket capacity because some of the work we are doing around the circuit that has resulted in fewer seats within the circuit but i think overall in terms of the entire month of september with formula one base and the different business events taking place in singapore, we should be posting very strong performance for the month of september and especially for the 10 days we have before, during, and after. haidi: singapore gp owns the rights to the event and we know that there are developments coming -- developments regarding his arrest. has that cast a cloud over this year's festivities? >> i cannot comment on the

investigation, however you should know and i would like to say this to our audience, the preparation for the race was very much on track and as you will see if you are in singapore this weekend, there is a hive of activity taking place. all of our partners have been with us throughout the 14 auditions and it is very much focused on delivering a great show and great weekend for our guests. shery: i think you are expecting some big events next year, taylor swift, coldplay concerts. what are your expectations regarding tourism boost because of those concerts? >> i think we have always been very committed towards looking at delivering a refreshed pipeline of experiences for domestic and international audiences. so when it comes to entertainment, a list of artists

and celebrities that we believe will be a great draw for our international visitors, it was absolutely no hesitation that we would partner with our friends and partners to bring in and act like taylor swift. that will obviously bring tremendous benefits to the city and that is not just one act. i think of the lineup of leisure events in the next 12 months remains very strong and if you look at that coupled with the calendar of events we have, the business events and summits, some this week and more coming in in the coming year. haidi: thank you for joining us from the summit. still ahead, why china's health care section current --

crackdown could have long-term consequences. we have that next. this is bloomberg. ♪ get help reaching your goals with j.p. morgan wealth plan, a digital money coach in the chase mobile® app. use it to set and track your goals, big and small... and see how changes you make today... could help put them within reach. from your first big move to retiring poolside - and the other goals along the way.

wealth plan can help get you there. ♪ j.p. morgan wealth management. haidi: china's crackdown on graft has rocked the health care industry.

bloomberg found some unintended consequences. our correspondent joins us from hong kong. this sector was ripe for an overhaul. it makes sense beijing is going after health care. >> absolutely. health care is a huge part of the economy in china in treating 1.4 billion people. the country has done amazing things in terms of getting health care to the people but one way it has been doing that is allowing doctors a significant amount of power in terms of what they give their patients, how they care for them in hospitals, that type of thing. they have gotten some of their income through working directly with patients, giving them medicine, ordering equipment, buying equipment for their major purchases for their hospital and corruption has crept in. part of xi jinping's crackdown across the board, health care is

now in the crosshairs. shery: did the power lead to the corruption? this sector has been dogged by bribery for a while. >> corruption is in health care pretty much everywhere in the world. there are incentives for doctors to care for patients, sometimes financial, sometimes in what they are doing for what they believe in, but in china it has been particularly difficult because doctors and health care workers make so much less compared to doctors elsewhere. for example, a study shows doctors in china make less than $50,000 a year. that compares to more than $350,000 on average in the u.s.. how do doctors get to the middle class, it is a prestigious

occupation. if they write prescriptions they get a cut of the cost that goes into their pocket. if they are implanting an artificial hip, they get some of that. so the question is if doctors and hospitals have been prescribing and implanting where the patient does not need it but the doctors getting the financial benefit. haidi: what impact are we starting to see? >> the concern is that this is crackdown across the entire industry, almost 10 million doctors and nurses are being hit by the said they are pulling back, they are not prescribing as much as they would have, they are not doing some of the procedures, a lot of the activities in hospitals has slow down. they used to be doing a lot more overtime and they have cut back on it because no one wants to get afoul of the policies.

we have seen doctors and health care workers, hospital and corporate execs arrested and no one wants to do that so they are taking less activity and it is possible that patients could be harmed by that. shery: it is hard to gauge the government actions when it comes to the crackdowns but do we have a sense of how long this could last? >> there is some indication things might have gone further than they wanted. with some of the laying flat activity. the government said it would be a year-long process. we have seen ipos polled and stock prices fall and criticism by things like the global times, the state run news organization, so now we are getting indication that perhaps they will pull back a little and maybe not try to do as much of an effort and kind of just try to get the most egregious corruption under control so that the patients

aren't paying the greatest price that we are thinking maybe it will be less than the we're -- less than the year they reported. shery: here are some of the stocks we are watching. chinese property developers announcing they are suspending payments of all offshore debts. the company cited tight liquidity as the debt crisis deepens. and a mixed picture when it comes to the asian stock markets right now. haidi: it is. a lot of news flow for our investors to contend with but the good in terms of u.s. data and positive ipo and the negative numbers from china we are waiting on, they may show bottoming up but certainly no significant improvement and there is the rrr cut and we are setting up for a big week next

week when it comes to central bank activity as well so we are seeing broadly regional stocks are headed higher ahead of the chinese data and some of the leadership coming through from stocks in sydney, almost up to point -- 2%. the nikkei 225 gaining and positive trading when it comes to korea as well. new zealand seeing a lab but in sydney we are seeing equities rallying the most in two weeks. coming up, j.p. morgan tells us why u.s. inflation is not high enough to change the fed narrative of a pause in september. i'm we will talk with joey watt on consumer recovery -- and we will speak with joey watt on consumer recovery.

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